PUBLIC LAW 96-377, 94 STAT. 1512
permitting an increase in the
investment yield on United States savings bonds above
the existing 7 per centum
ceiling, and by increasing the amount of the bonds
paying interest in excess of
4 1/4 per centum which may be outstanding.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That, with respect to
interest accrual periods beginning after the date of the enactment of
this Act, paragraph (3) of section 22(b) of the Second Liberty Bond Act
(31 U.S.C. 757c) is amended to read as follows:
"(3) The Secretary of the Treasury, with the approval of the
President, may fix the investment yield on any United States savings
bond at a yield which is above the 5 1/2 per centum limitation contained
in paragraph (1). The aggregate of the increases in investment yield
which may take effect during any 6-month period pursuant to the
preceding sentence for any United States savings bonds may not exceed 1
per centum per annum compounded semiannually."
Sec. 2. (a) Effective on the date of the enactment of this Act, the
last sentence of the second paragraph of the first section of the Second
Liberty Bond Act (31 U.S.C. 752) is amended by striking out
"$50,000,000,000" and inserting in lieu thereof "$54,000,000,000".
(b) Effective on October 1, 1980, the last sentence of the second
paragraph of the first section of such Act is amended by striking out
"$54,000,000,000" and inserting in lieu thereof "$70,000,000,000".
Approved October 3, 1980.
LEGISLATIVE History:
HOUSE REPORT No. 96 - 1180 (Comm. on Ways and Means).
SENATE REPORT No. 96 - 911 (Comm. on Finance).
CONGRESSIONAL RECORD, Vol. 126 (1980):
July 28, considered and passed House.
Sept. 26, considered and passed Senate.
PUBLIC LAW 96-376, 94 STAT. 1509
fiscal year 1981, to authorize
supplemental appropriations for fiscal year 1980, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That funds are hereby
authorized to be appropriated for necessary expenses of the Coast Guard
for fiscal year 1981, as follows:
(1) for the operation and maintenance of the Coast Guard,
including expenses related to the Capehart housing debt reduction:
$1,248,367,000;
(2) for the acquisition, construction, rebuilding, and
improvement of aids to navigation, shore facilities, vessels, and
aircraft, including equipment related thereto: $469,320,000;
(3) for the alteration or removal of bridges over navigable
waters of the United States, constituting obstructions to
navigation: $16,200,000; and
(4) for research, development, test, and evaluation:
$30,000,000.
Sec. 2. For fiscal year 1981, the Coast Guard is authorized an
end-of--, year strength for active duty personnel of 39,600: Provided,
That the ceiling shall not include members of the Ready Reserve called
to active duty under the authority of section 764 of title 14, United
States Code.
Sec. 3. For fiscal year 1981, average military training student
loads for the Coast Guard are authorized as follows:
(1) recruit and special training: 4,175 student-years;
(2) flight training: 117 student-years;
(3) professional training in military and civilian
institutions: 595 student-years; and
(4) officer acquisition: 925 student-years.
Sec. 4. The second sentence of subsection 475(a) of title 14, United
States Code, is amended to read as follows: " When any such lease
involves housing facilities in a foreign country, the lease may be made
on a multiyear basis for a period not to exceed five years, and, in
accordance with local custom and practice, advance payment may be made
for the lease.".
Sec. 5. The third sentence of subsection 650(a) of title 14, United
States Code, is amended to read as follows: " In these regulations,
whenever the fund is extended to include items not previously stocked,
or spare parts obtained as part of a procurement under a different
account of major items such as vessels or aircraft, whether or not such
parts were previously stocked, the Secretary may authorize an increase
in the existing capital of the fund by the value of such usable
materials transferred thereto from Coast Guard inventories carried in
other accounts.".
Sec. 6. The last sentence of subsection 214(d) of title 14, United
States Code, is amended to read as follows: " A person who is appointed
under this section may not suffer any reduction in the rate of pay and
allowances to which he would have been entitled had he remained in his
former grade and continued to receive the increases in pay and
allowances authorized for that grade.".
Sec. 7. (a) Chapter 13 of title 14, United States Code, is
amended by
adding a new section 512 as follows:
" Section 512. // 14 USC 512. // Monetary allowance for
transportation of household effects
" The transportation and reimbursement authorized by subsection (b)
of section 406 of title 37, United States Code, shall be available
hereafter to pay a monetary allowance in place of such transportation to
a member who, under regulations prescribed by the Secretary,
participates in a program designated by the Secretary in which his
baggage and household effects are moved by a privately owned or rental
vehicle. This allowance shall not be limited to reimbursement for
actual expenses and may be paid in advance of the transportation of the
baggage and household effects. The allowance shall, however, be in an
amount that will result in savings to the Government when the total cost
of the movement of baggage and household effects is compared with the
cost that otherwise would have been incurred under subsection (b) of
section 406 of title 37, United States Code.".
(b) The analysis of chapter 13 of title 14, United States Code, is
amended by adding the following item at the end thereof:
"512. Monetary allowance for transportation of household effects.".
Sec. 8. // 46 USC 382b-1. // When an inspection or examination of a
vessel documented or to be documented as a vessel of the United States
is conducted at a foreign port or place at the request of the owner or
operator of the vessel, that owner or operator shall reimburse the
Secretary of the department in which the Coast Guard is operating for
the travel and subsistence expenses incurred by the personnel assigned
to perform the inspection or examination. Amounts received as
reimbursement for these expenses shall be credited to the appropriation
for operating expenses of the Coast Guard.
Sec. 9. The joint resolution of June 4, 1958 (72 Stat. 179; 36 U.
S.C. 161) is amended by striking the words "week which includes July 4"
and inserting in lieu thereof the words "week commencing on the first
Sunday in June".
Sec. 10. (a) Chapter 17 of title 14, United States Code, is amended
by adding a new section 660 as follows:
" Section 660. // 14 USC 660. // Transportation to and from certain
places of employment
"(a) Whenever the Secretary determines that it is necessary for the
effective conduct of the affairs of the Coast Guard, he may, at
reasonable rates of fare fixed under regulations to be prescribed by
him, provide assured and adequate transportation by motor vehicle or
water carrier to and from their places of employment for persons
attached to, or employed by, the Coast Guard; and during a war or
during a national emergency declared by Congress or the President, for
persons attached to, or employed in, a private plant that is
manufacturing material for the Coast Guard.
"(b) Transportation may not be provided under subsection (a) unless
the Secretary or an officer designated by the Secretary, determines
that--,
"(1) other transportation facilities are inadequate and cannot
be made adequate;
"(2) a reasonable effort has been made to induce operators of
private facilities to provide the necessary transportation; and
"(3) the service to be furnished will make proper use of
transportation facilities and will supply the most efficient
transportation to the person concerned.
"(c) To provide transportation under subsection (a), the Secretary
may--,
"(1) buy, lease, or charter motor vehicles or water carriers
having a seating capacity of 12 or more passengers;
"(2) maintain and operate that equipment by enlisted members or
employees of the Coast Guard, or by private persons under
contract; and
"(3) lease or charter the equipment to private or public
carriers for operation under terms that are considered necessary
by the Secretary or by an officer designated by the Secretary, and
that may provide for the pooling of government-owned and privately
owned equipment and facilities and for the reciprocal use of that
equipment.
"(d) Fares received under subsection (a), and proceeds of the leasing
or chartering of equipment under subsection (c)(3), shall be covered
into the Treasury as miscellaneous receipts.".
(b) The analysis of chapter 17 of title 14, United States Code, is
amended by adding the following item at the end thereof:
"660. Transportation to and from certain places of employment.".
Sec. 11. Paragraph (1) of the first section of Public Law 96 - 23
(93 Stat. 68) is amended by striking "$1,058,357,000;" and substituting
"1,091,357,000;".
Sec. 12. // 14 USC 656 // The President shall submit to the Congress,
with the fiscal year 1982 budget request for the Coast Guard and each
subsequent budget request, the current copy of the Coast Guard's Capital
Investment Plan, Cutter Plan, Aviation Plan, and Shore Facilities Plan.
Sec. 13. Section 2(c) of Public Law 96 - 324 is amended by striking
the words "the Canal Zone,".
Approved October 3, 1980.
LEGISLATIVE HISTORY:
HOUSE REPORT No. 96 - 909 accompanying H.R. 6672 (Comm. on Merchant
Marine and Fisheries).
SENATE REPORT No. 96 - 779 (Comm. on Commerce, Science, and
Transportation).
CONGRESSIONAL RECORD, Vol. 126 (1980):
June 23, considered and passed Senate.
Sept. 15, H.R. 6672 considered and passed House; passage
vacated and S. 2489, amended, passed in lieu.
Sept. 22, Senate concurred in House amendments.
PUBLIC LAW 96-375, 94 STAT. 1505
feasibility investigations of
certain water resource developments, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the Secretary of
the Interior is hereby authorized to engage in feasibility studies of
the following proposals:
(1) Hungry Horse Project, Hungry Horse Powerplant Enlargement and
Reregulating Reservoir, located on the South Fork of the Flathead River
in Flathead County, Montana.
(2) Boise Project, Power and Modification Study, located in
southwestern Idaho (Ada, Boise, Canyon, Elmore, Gem, Payette, and Valley
Counties) and in eastern Oregon (Malheur County).
(3) San Francisco Bay Area Waste Water Reclamation Project, located
in the San Francisco Bay area and western San Joaquin Valley of
California.
(4) San Joaquin Valley Drainage Investigation with a study area in
the San Joaquin River basin, Tulare basin, and the Sacramento-San
Joaquin Delta-Suisun Bay area of California.
(5) Delta Overland Water Service Facilities, located in the
Sacramento, San Joaquin, Solano, and Contra Costa Counties of
California.
(6) Chino Valley Project, located in north central Yavapai County and
south central Coconino County in Arizona.
(7) North Platte River Hydroelectric Power Study, Pick-Sloan Missouri
Basin Program, Western Division, located in Natrona and Carbon Counties,
Wyoming.
(8) Wind-Hydroelectric Energy Project in Carbon and Albany Counties,
Wyoming.
(9) Lake Meredith Salinity Project, in Quay County, New Mexico, and
Oldham, Potter, Moore, Carson, and Hutchinson Counties in Texas.
(10) Colorado-Big Thompson Powerplants of the Pick-Sloan Missouri
Basin Program in Colorado.
(11) The relocation of the intake of the Contra Costa County Water
District Canal from Rock' Slough to the vicinity of the Clifton Court
Forebay in Contra Costa County, California.
(12) The Los Vaqueros Dam, pump-generating plant, and related
features at a site approximately eight miles west of the Clifton Court
Forebay in Contra Costa County, California.
(13) The obtaining of a water supply of up to ten thousand acre-feet
per year for existing and potential domestic, recreational, and
municipal water users along the Colorado River in California who do not
hold water rights or whose rights are insufficient to meet their
requirements.
(14) To determine the cause and extent of the high groundwater levels
which developed in and adjacent to the town of Moses Lake, Washington,
following the initigation of the lands in and adjacent to the town and
determine by the studies authorized herein measures to resolve the
problems caused by the high water levels in the area.
(15) The Cle Elum Dam and Tieton Dam powerplants, Yakima Project,
Washington.
(16) The Owyhee Dam powerplant, Owyhee Project, Oregon.
(17) The Wichiup Dam powerplant, Deschutes Project, Oregon.
(18) The Tiber Dam powerplant, Lower Marias Unit, Marias Division,
Pick-Sloan Missouri Basin Program, Montana.
(19) The New Siphon Drop powerplant, Yuma Project, Arizona--,
California.
(20) The Guernsey Dam powerplant enlargement, North Platte Project,
Wyoming.
(21) Increasing the height of the Theodore Roosevelt Dam, Salt River
Project, Arizona.
(22) The Sly Park Extension Unit, American River Division, Central
Valley Project, California.
(23) The Prineville Dam powerplant, Crooked River Project, Oregon.
Sec. 2. (a) The Secretary of the Interior is hereby authorized to
engage in feasibility studies relating to enlarging Shasta Dam and
Reservoir, Central Valley Project, California, or to the construction of
a larger dam on the Sacramento River, California, to replace the present
structure.
(b) The Secretary of the Interior is further authorized to engage in
feasibility studies for the purpose of determining the potential costs,
benefits, environmental impacts, and feasibility of using the Sacramento
River for conveying water from the enlarged Shasta Dam and Reservoir or
the larger dam to points of use downstream from the dam.
(c) Before funds are expended for the feasibility studies authorized
by this section, the State of California shall agree to participate in
the studies and to participate in the costs of the studies. The State's
share of the costs may be partly or wholly in the form of services
directly related to the conduct of the studies.
Sec. 3. The Secretary of the Interior is authorized to review and
revise, as may be necessary, the feasibility study of the Kellogg Unit,
Central Valley Project, Contra Costa County, California.
Sec. 4. In preparing the studies and review authorized by
subsections (11) and (12) of section 1 and section 3, the Secretary of
the Interior shall fully describe all potential beneficial or detrmental
impacts resulting from the construction or operation of the projects
under study. The Secretary shall further make recommendations to the
Congress for assuring that neither the construction nor the operation of
any such project results in the deterioration of the water quality and
ecology of the Sacramento-San Joaquin Delta or the San Francisco Bay
estuarine system.
Sec. 5. (a) Notwithstanding any other provision of law, the
Secretary of the Interior is authorized to enter into new negotiated
concession agreements with the present concessionaires at Lake
Berryessa, California. Such agreements shall be for a term ending not
later than May 26, 1989, and may be renewed at the request of the
concessionaire with the consent of the Secretary of the Interior for no
more than two consecutive terms of 10 years each. Concession agreements
may be renegotiated preceding renewal. Such agreements must comply with
the 1959 National Park Service Public Use Plan for Lake Berryessa, as
amended, and with the Water and Power Resources Service Reservoir Area
Management Plan: Provided, That the authority to enter into contracts
or agreements to incur obligations or to make payments under this
section shall be effective only to the extent and in such amounts as are
provided in advance in appropriation Acts.
(b) Notwithstanding any other laws to the contary, all permanet
facilities placed by the concessionaires in the seven resorts at Lake
Berryessa shall be considered the property of the respective current
concessionaires. Further, any permanent additions or modifications to
these facilities shall remain the property of said concessionaires:
Provided, That at the option of the Secretary of the Interior, the
United States may require that the permanent facilities mentioned herein
not be removed from the concession areas, and instead, pay fair value
for the permanent facilities or, if a new concessionaire assumes
operation of the concession, require that concessionaire to pay fair
value for the permanent facilities to the existing concessionaire.
Sec. 6. The Reclamation Project Authorization Act of 1972 (Public
Law 92 - 514, 86 Stat. 964) is amended--,
(a) by inserting in section 101 of such Act, following "on this
project", "as modified by the plans shown in the Definite Plan
Report of the Water and Power Resources Service, dated November
1979";
(b) by inserting in section 102(b) of such Act,
// 86 Stat. 965. //
following "domestic
wells in existence", "outside the project boundary"; and
(c) by striking in section 109 of such Act
// 86 Stat. 966. //
"$18,246,000 (April 1972 prices)" and inserting in lieu thereof
"$57,139,000 (October 1979 prices)".
Sec. 7. The Curecanti Storage Unit of the Colorado River Storage
Project constructed under the authority of the Act of April 11, 1956 (70
Stat. 106) // 43 USC 620, 621i, 620k // is hereby designated and
hereafter shall be known as the Wayne N. Aspinall Storage Unit of the
Colorado River Storage Project. Any law, regulation, record, map, or
other document of the United States referring to the Curecanti Storage
Unit shall be held to refer to the Wayne N. Aspinall Storage Unit.
Sec. 8. Section 1(5) of the Act of July 2, 1956 (70 Stat. 483), //
43 USC 485h-1. // is hereby amended to read as follows: "(5) Provide
for payment of rates under any contract entered into pursuant to said
subsection (e) in advance of delivery of water on an annual, semiannual,
bimonthly, or monthly basis as specified in the contract."
Sec. 9. The Secretary of the Interior in coordination with the
Secretary of Energy shall conduct a three-year study of the feasibility
of integrating a solar powerplant in Arizona, Nevada, and California
into the Federal hydroelectric system, including but not limited to
consideration of the applicable solar technology, the operation of the
Federal hydroelectric system and the integration of electric power
generated by such a powerplant in the Federal system. The study shall
specifically consider operations of Department of Energy Project 76 -
2-b, 10 MW Solar Thermal Power and related technology development. The
Secretary shall complete the study by January 1, 1984 and submit a
report to the President and the Congress.
Sec. 10. That the proviso contained in section 201 of the Colorado
River Basin Project Act (43 U.S.C. 1511) is amended by striking out "the
Secretary" and inserting in lieu thereof "any Federal official".
Sec. 11. Section 206 of Public Law 92 - 514 is amended to read as
follows: " There is hereby authorized to be appropriated for
construction of the Brantley project the sum of $172,728,000 (based on
April 1979 prices), plus or minus such amounts, if any, as may be
justified by reason of changes in the construction costs as indicated by
engineering cost indexes applicable to the types of construction
involved and, in addition thereto, sums as may be required for operation
and maintenance of the project.".
Sec. 12. The Secretary of the Interior is hereby authorized to
engage in feasibility studies of the following salinity control
proposals:
(1) Lower Gunnison Basin unit, located in Delta, Montrose, and
Ouray Counties, Colorado.
(2) Glenwood-Dotsero Springs unit, located in Garfield and
Eagle Counties, Colorado.
(3) Meeker Dome unit, located in Rio Blanco County, Colorado.
(4) Mc Elmo Creek unit, located in Montezuma County, Colorado.
(5) Uinta Basin unit, located in Duchesne and Uintah Counties,
Utah.
(6) Dirty Devil River unit, located in Sanpete, Sevier, Emery,
and Wayne Counties, Utah.
(7) Price-San Rafael Rivers unit, located in Carbon, Emery, and
Sapete Counties, Utah.
(8) La Verkin Springs unit, located in Washington County, Utah.
(9) Lower Virgin River unit, located in Clark County, Nevada,
and Mohave County, Arizona.
(10) Big Sandy River unit, located in Sweetwater County,
Wyoming.
Sec. 13. Nothing in this Act shall be interpreted to preclude or
delay issuance of a license by the Federal Energy Regulatory Commission.
Approved October 3, 1980.
LEGISLATIVE HISTORY:
HOUSE REPORT No. 96 - 710 (Comm. on Interior and Insular Affairs).
SENATE REPORT No. 96 - 890 accompanying H.R. 5278, and No. 96 - 938
accompanying S. 3017 (Comm. on Energy and Natural Resources).
CONGRESSIONAL RECORD, Vol. 126 (1980):
Feb. 5, considered and passed House.
Sept. 17, considered and passed Senate, amended, in lieu of S.
3017.
Sept. 24, House concurred in Senate amendment.
PUBLIC LAW 96-374, 94 STAT. 1367, EDUCATION AMENDMENTS OF 1980
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act // 20 USC
1001 // may be cited as the " Education Amendments of 1980".
HIGHER EDUCATION
ACT OF 1965
Sec. 101. New programs established.
AND
PLANNING
Postsecondary Education
" Sec. 101. Findings.
" Sec. 102. Establishment of the Commission on National Development
in Postsecondary Education.
" Sec. 103. Duties of the Commission.
" Sec. 104. Powers and administrative provisions.
" Sec. 105. Authorization.
" Sec. 111. Findings.
" Sec. 112. State allotments.
" Sec. 113. Comprehensive statewide planning.
" Sec. 114. Information services.
" Sec. 115. Continuing education.
" Sec. 116. Federal discretionary grants.
" Sec. 117. National Advisory Council on Continuing Education.
" Sec. 118. Definitions.
" Sec. 119. Appropriations authorized and payments.".
THE HIGHER
EDUCATION ACT OF 1965
Sec. 201. Extension and revision of library programs.
AND LIBRARY
TRAINING AND RESEARCH
" Sec. 201. Purpose; authorization.
" Sec. 202. Notification of State agency.
" Sec. 211. Resource development grants.
" Sec. 221. Grants authorized.
" Sec. 222. Library career training.
" Sec. 223. Research and demonstrations.
" Sec. 224. Special purpose grants.
" Sec. 231. Eligibility for assistance.
" Sec. 232. Geographical distribution of grants.
" Sec. 241. Purpose.
" Sec. 242. Establishment.
" Sec. 243. Functions of the Corporation.
" Sec. 244. Board of Directors.
" Sec. 245. Director and staff of Corporation.
" Sec. 246. Nonprofit nature of Corporation.
" Sec. 247. Authority of Corporation.
" Sec. 248. Implementing the design.
" Sec. 249. Copyright Act.
" Sec. 250. Definitions.
" Sec. 251. Authorization of appropriations.".
THE HIGHER
EDUCATION ACT OF 1965
Sec. 301. Programs authorized.
" Sec. 301. Findings and purposes.
" Sec. 311. Program purpose.
" Sec. 312. Definitions.
" Sec. 313. Duration of grant.
" Sec. 321. Program purpose.
" Sec. 322. Definitions.
" Sec. 323. Duration of grant.
" Sec. 324. Federal share.
for Assistance Under
Part A or Part B
Sec. 331. Establishment of challenge grant program.
" Sec. 332. Applications for challenge grants.
" Sec. 341. Applications for assistance.
" Sec. 342. Waiver authority and reporting requirement.
" Sec. 343. Application review process.
" Sec. 344. Cooperative arrangements.
" Sec. 345. Assistance to institutions under other programs.
" Sec. 346. Limitations.
" Sec. 347. Authorizations.".
Institutions of Higher
Education
Sec. 401. Statement of purpose.
Sec. 402. Pell grants.
Sec. 403. Supplemental educational opportunity grants.
Sec. 404. Grants to States for State student incentives.
Sec. 405. Special programs for students from disadvantaged
backgrounds.
Disadvantaged Backgrounds
" Sec. 417 A. Program authority; authorization of appropriations.
" Sec. 417 B. Talent search.
" Sec. 417 C. Upward bound.
" Sec. 417 D. Special services for disadvantaged students.
" Sec. 417 E. Educational opportunity centers.
" Sec. 417 F. Staff development activities.".
Sec. 406. Special program for migrant and seasonal farmwork
students.
Sec. 407. Veterans' cost-of-instruction payments.
Sec. 411. Extension of programs.
Sec. 412. Loan limitations.
Sec. 413. Deferral of repayment.
Sec. 414. State agencies as lenders of last resort.
Sec. 415. Interest rate and payment.
Sec. 416. Collection practices.
Sec. 417. Administrative improvements.
Sec. 418. Loan information program authorized.
Sec. 419. Loans to parents.
Sec. 420. Special allowances.
Sec. 421. The Student Loan Marketing Association.
Sec. 422. Prompt due diligence determinations.
Sec. 423. Miscellaneous amendments.
Sec. 431. Purpose; appropriations authorized.
Sec. 432. Allotment to States.
Sec. 433. Use of certain unused college work-study program funds for
the support of cooperative education programs.
Sec. 434. Grants for work-study programs.
Sec. 435. Distribution of assistance.
Sec. 436. Job location and development.
Sec. 437. Work study for community service-learning.
Sec. 441. Extension of program.
Sec. 442. Alternative funding for direct loans; recapture of
current balances.
Sec. 443. Loan limitations.
Sec. 444. Deferral of repayment.
Sec. 445. Collection practices.
Sec. 446. Interest rates.
Sec. 447. Student loan information program authorized.
Sec. 448. Miscellaneous amendments.
Part E--General Provisions
Sec. 451. Student assistance general provisions.
Assistance Programs
" Sec. 481. Definitions.
" Sec. 482. Need analysis.
" Sec. 483. Forms and regulations.
" Sec. 484. Student eligibility.
" Sec. 485. Institutional and financial assistance information for
students.
" Sec. 486. Training in financial aid and student support services.
" Sec. 487. Program participation agreements.
" Sec. 488. Transfer of allotments.
" Sec. 489. Administrative expenses.
" Sec. 490. Criminal penalties.
" Sec. 491. National Commission on Student Financial Assistance.".
THE HIGHER
EDUCATION ACT OF 1965
Sec. 501. Extension of programs.
Sec. 502. Teacher Corps amendments.
Sec. 503. Teacher centers amendments.
Sec. 504. Teacher training.
Sec. 505. Training for teachers of handicapped children in areas
with a shortage.
Teachers To Teach
Handicapped Children in Areas With a Shortage
" Sec. 541. Grants authorized.
" Sec. 542. Application.
" Sec. 543. Stipends and institution of higher education allowances.
" Sec. 544. Fellowship conditions.
" Sec. 545. Definition.
" Sec. 546. Appropriations authorized.".
Sec. 506. Education professional development.
Development
" Sec. 551. Findings.
" Sec. 552. Policy.
" Sec. 553. Office of Education Professional Development.".
HIGHER
EDUCATION ACT OF 1965
Sec. 601. Programs authorized.
" Sec. 601. Findings and purposes.
" Sec. 602. Graduate and undergraduate language and area centers.
" Sec. 603. International studies centers.
" Sec. 604. Undergraduate international studies and foreign language
programs.
" Sec. 605. Research; studies; annual report.
" Sec. 606. Equitable distribution of funds.
" Sec. 607. Authorization of appropriations.
" Sec. 611. Findings and purposes.
" Sec. 612. Education and training programs.
" Sec. 613. Authorization of appropriations.
" Sec. 621. Advisory board.
" Sec. 622. Definitions.".
EDUCATION ACT
OF 1965
Sec. 701. Amendment.
RENOVATION OF
ACADEMIC FACILITIES
" Sec. 701. General purposes.
" Sec. 702. Appropriations authorized.
and Renovation of
Undergraduate Academic Facilities
" Sec. 711. State plan.
" Sec. 712. Basic criteria.
" Sec. 713. Allotment of funds.
Renovation of
Graduate Academic Facilities
" Sec. 721. Grants.
Renovation of
Academic Facilities
" Sec. 731. Eligibility conditions, amounts, and terms.
" Sec. 732. General provisions for loan program.
" Sec. 733. Revolving loan and insurance fund.
" Sec. 734. Annual interest grants.
" Sec. 735. Academic facilities loan insurance.
" Sec. 741. Recovery of payments.
" Sec. 742. Definitions.".
Sec. 801. Extension of program.
Sec. 901. Grants to institutions of higher education.
Sec. 902. Graduate fellowships.
Study
" Sec. 921. Statement of purpose.
" Sec. 922. Program authorized.
" Sec. 923. Award of fellowships.
" Sec. 924. Authorization of appropriations.".
Sec. 903. New program authorized.
" Sec. 931. Award of national graduate fellowships.
" Sec. 932. Allocation of fellowships.
" Sec. 933. Stipends.
" Sec. 934. Fellowship conditions.".
Sec. 904. Training and legal assistance profession program
authorized.
Profession
" Sec. 941. Program authorized.
" Sec. 942. Authorization of appropriations.".
Sec. 905. Law school programs included in title IX.
" Sec. 951. Program authorization.
" Sec. 952. Applications.
" Sec. 953. Authorization of appropriations.".
HIGHER
EDUCATION ACT OF 1965
Sec. 1001. Fund for the Improvement of Postsecondary Education.
" Sec. 1001. Authorization of program.
" Sec. 1002. Consultation.
" Sec. 1003. National Board of the Fund for the Improvement of
Postsecondary Education.
" Sec. 1004. Administrative provisions.
" Sec. 1005. Authorization of appropriations.".
HIGHER
EDUCATION ACT OF 1965
Sec. 1101. Program authorized.
" Sec. 1101. Findings and purpose.
" Sec. 1102. Appropriations authorized.
" Sec. 1103. Project assistance.
" Sec. 1104. Limitation.
" Sec. 1105. Definitions.".
Sec. 1201. Amendments.
" Sec. 1203. Federal-State relationships; State agreements.
" Sec. 1204. Treatment of territories and territorial student
assistance.
" Sec. 1205. National Advisory Committee on Accreditation and
Institutional Eligibility.".
Sec. 1301. Contingent extension.
Sec. 1302. Enforcement of the rules.
Sec. 1303. Science education programs.
Sec. 1304. Commission on the Review of the Federal Impact Aid
Program.
Sec. 1305. Evaluation reports.
Sec. 1306. Education impact statement.
Sec. 1311. Extension of authority.
Sec. 1312. Declaration of policy.
Sec. 1313. Research and development priorities.
Sec. 1314. Repealer.
Sec. 1321. Composition of the Architectural and Transportation
Barriers Compliance Board and transmission of report.
Sec. 1322. Information clearinghouse for handicapped individuals.
Sec. 1331. Study authorized.
Sec. 1341. Program authorized.
Program
Sec. 1351. Amendments to the Navajo Community College Act.
Sec. 1361. American Samoa and Micronesia land grant colleges.
Sec. 1371. Short title.
Sec. 1372. Grants for development.
Sec. 1373. Authorization of appropriations.
Education Center
Sec. 1376. Financial assistance authorized.
Sec. 1377. Authorization of appropriations.
Affairs
Sec. 1381. Short title.
Sec. 1382. Assistance for the establishment of the William Levi
Dawson Chair of Public Affairs.
Sec. 1383. Authorization of appropriations.
Sec. 1391. Administrative amendments.
Sec. 1392. Contract authority.
Sec. 1393. Effective dates.
Sec. 101. (a) Title I of the Higher Education Act of 1965 (hereafter
in this Act referred to as the " Act") is amended to read as follows:
" Sec. 101. // 20 USC 1001. // The Congress finds--,
"(1) that institutions of higher education in our Nation and
their human and intellectual resources are critical to the future
of the American society, and that the Nation's economic potential,
its strength and freedom, and the quality of life for all citizens
are tied to the quality and extent of higher education available;
"(2) that it is the responsibility of the Federal Government,
consistent with the rights, duties, and privileges of States and
institutions of higher education, to promote--,
without
regard to age, race, sex, creed, handicap, national
origin,
geographic location, or economic status;
participate
in postsecondary education, to select institutions and
programs
which meet their needs and abilities;
responsibility,
and educational diversity;
education,
and the optimal allocation of human, physical and
financial resources, through efficient planning and
management
to achieve these goals; and
"(3) that demographic, economic, and social changes will
require institutions of postsecondary education to adapt to the
future needs of individuals and of American society.
DEVELOPMENT
IN POSTSECONDARY EDUCATION
" Sec. 102 // 20 USC 1002. // (a) There is established a Commission
to be known as the Commission on National Development in Postsecondary
Education to review the effectiveness of policies to promote the Federal
responsibilities set forth in clauses (A) through (E) of section 101(2).
"(b) The Commission shall be composed of twenty-five members as
follows:
"(1) Nine members shall be appointed by the President of the
United States.
"(2) Eight of the members shall be appointed by the President
pro tempore of the Senate upon the recommendation of the Majority
Leader and the Minority Leader.
"(3) Eight members shall be appointed by the Speaker of the
House of Representatives.
"(c)(1) Of each class specified in subsection (b) not more than four
members shall be from the same political party, except in the case of
the members appointed under clause (1), in which case not more than five
members shall be from the same political party. The members of the
Commission appointed from private life shall be individuals who by
reason of experience or training are especially qualified to serve on
the Commission.
"(2) In making appointments under subsection (b) of this section the
President, the President pro tempore, and the Speaker of the House of
Representatives shall give due consideration to the appointment of
individuals who, collectively, will provide appropriate representation
of institutions of higher education, State agencies responsible for
postsecondary education, labor, the business community, and public
service.
"(d) Any vacancy in the Commission shall not affect its powers but
shall be filled in the same manner in which the original appointment was
made.
"(e) The Commission shall select a Chairman and a Vice Chairman from
among its members.
"(f) Thirteen members of the Commission shall constitute a quorum for
the transaction of business, but the Commission may establish a lesser
number as a quorum for the purpose of holding hearings, taking
testimony, and receiving evidence.
"(g)(1) Members of the Commission who are Members of Congress or
officers or employees of the executive branch of the Government shall
serve without additional compensation but shall be reimbursed for
travel, subsistence and other necessary expenses incurred by them in
carring out the duties of the Commission.
"(2) Members of the Commission not otherwise employed by the Federal
Government shall receive compensation at a rate equal to the daily rate
prescribed for GS-18 of the General Schedule // 45 FR 69201. // under
section 5332 of title 5, United States Code, including traveltime for
each day they are engaged in the performance of their duties as members
of the Commission and shall be entitled to reimbursement for travel,
subsistence, and other necessary expenses incurred by them in carrying
out the duties of the Commission.
" Sec. 103. // 20 USC 1003. // (a) The Commission shall study and
investigate the extent to which national policies promote the objectives
set forth in clauses (A) through (E) of section 101(2). Such study
shall include, but not be limited to, consideration of--,
"(1) the extent to which postsecondary educational planning by
States and localities and institutions of higher education is
designed to identify the future needs of education in American
society;
"(2) the effectiveness of Federal financial assistance to
students and institutions of higher education in promoting
national development of postsecondary education in the most
efficient manner;
"(3) the physical and financial capacity of institutions of
higher education to carry out their mission, including the conduct
of basic and applied research in the humanities and scientific and
technical fields, and the relationship between institutions of
higher education, public agencies, and the private sector in
developing the capacity of higher education to promote such
research;
"(4) the human and technical resources currently and
prospectively available to institutions of higher education to
enable them to address and respond to national and worldwide
social and economic forces; "(5) the effect of demographic
changes on institutions of higher education and their constituent
disciplines and professions and the ability of such institutions
to meet national needs; and
"(6) the extent to which Federal student assistance may be used
to promote the recruiting of individuals to serve in the Armed
Forces and to retain members of the Armed Forces.
"(b)(1) In addition, the Commission shall conduct a study of the
remaining barriers to adult postsecondary education which analyzes the
characteristics of current or potential adult postsecondary students,
the Federal response to the needs of adult postsecondary students, and
the ability of educational institutions to respond to the growing
postsecondary student population. For the purpose of the study
conducted under this subsection, the term 'adult postsecondary student'
means individuals twenty-two years of age or older.
"(2) In analyzing the characteristics of current or potential adult
postsecondary students and the Federal response to their needs, the
Commission shall--,
"(A) review the extent to which such students are motivated by
employment goals, and whether these students seek further
education in order to enter the labor force or reenter after an
extended absence, advance in a current career, or move from one
career to another;
"(B) analyze the relationship between different employment
motivations and sources of financial assistance for education,
choice of institution or patterns of participation in
postsecondary education;
"(C) evaluate the extent to which the unavailability or
inaccessibility of financial aid sources may prevent educational
participation by economically or socially disadvantaged adults, or
otherwise limit their choice of educational focus or intensity of
study; and
"(D) evaluate the extent to which age represents a barrier to
participation in postsecondary education and the potential for
greater participation in postsecondary education by individuals
age 60 and older.
"(3) In analyzing the ability of postsecondary institutions to
respond to the potential adult postsecondary student population, the
Commission shall, at a mimimum--,
"(A) review the availability of outreach, information,
counseling, or supportive service programs, with particular
attention to programs serving adults such as homemakers or
retirees who are least likely to have access to normal sources of
educational information; and
"(B) review the availability of alternative methods of
evaluating past education credits and experience to promote adult
participation in postsecondary education, and the availability of
remedial courses for adult students.
"(4) The Commission shall coordinate the study conducted under this
subsection with the research and demonstration priorities of the
National Institute of Education, and such other studies on student
financial assistance as are authorized by this Act.
"(c) The Commission shall submit to the President and to the Congress
such interim reports as it deems advisable and, not later than December
31, 1983, a final report of its study and investigation together with
such recommendations, including recommendations for legislation, as the
Commission deems advisable.
"(d) The Commission shall cease to exist 60 days after the submission
of its final report.
" Sec. 104. // 20 USC 1004. // (a) The Commission or, on
authorization of the Commission, any subcommittee or member thereof,
may, for the purposes of carrying out the provisions of this Act, hold
such hearings, sit and act at such times and places, as the Commission
or such subcommittee or member may deem advisable.
"(b) The Commission may acquire directly from the head of any
department, agency, independent instrumentality, or other authority of
the executive branch of the Government, available information which the
Commission considers useful in the discharge of its duties. All
departments, agencies, and independent instrumentalities, or other
authorities of the executive branch of the Goverment, shall cooperate
with the Commission and furnish all information requested by the
Commission to the extent permitted by law.
"(c) The Commission is authorized to--,
"(1) appoint and fix the compensation of such personnel as may
be necessary, without regard to the provisions of title 5, United
States Code,
// 5 USC 101. //
governing appointments in the competitive service, and without
regard to the provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to classification and General
Schedule pay rates;
"(2) obtain the services of experts and consultants in
accordance with the provisions of section 3109 of title 5, United
States Code;
"(3) enter into agreements with the General Services
Administration for procurement of necessary financial and
administrative services, for which payment shall be made by
reimbursement from funds of the Commission in such amounts as may
be agreed upon by the Chairman and the Administrator of General
Services;
"(4) procure supplies, services, and property, and make
contracts, without regard to the laws and procedures applicable to
Federal agencies; and
"(5) enter into contracts with Federal or State agencies,
private firms, institutions, and agencies for the conduct of
research or surveys, the preparation of reports, and other
activities necessary to the discharge of its duties.
" Sec. 105. // 20 USC 1005. // There are authorized to be
appropriated $3,000,000 to carry out the provisions of this part for the
period beginning October 1, 1981 through March 1, 1984.
" Sec. 111. // 20 USC 1011. // The Congress finds that--,
"(1) the rapid pace of social, economic, and technological
change has created pressing needs for postsecondary educational
opportunities for adults in all stages of life;
"(2) postsecondary educational opportunities in the United
States are traditionally provided for individuals between the ages
of eighteen and twenty-two;
"(3) many adults are barred from advancement or
self-sufficiency by lack of access to, and lack of retention in,
postsecondary educational opportunities appropriate to their
needs, or by lack of information or support services concerning
the availability of postsecondary educational opportunities;
"(4) access to postsecondary educational opportunities is
severely limited for adults whose educational needs have been
inadequately served during youth, or whose age, sex, race,
handicap, national origin, rural isolation, or economic
circumstance may be a barrier to such opportunities;
"(5) with declining population growth rates, the future of
postsecondary education in the United States is largely dependent
upon its ability to respond to the challenges of new student
populations;
"(6) service in continuing education will be better achieved
through increased emphasis on planning and coordination which more
effectively utilizes existing resources of both public and private
sectors; and
"(7) to meet the unique problems and needs of adults who are
disadvantaged in seeking access to postsecondary educational
opportunities, resources must be marshalled from a wide range of
institutions and groups, including community colleges,
community--, based educational institutions, business, industry,
labor, and other public and private organizations and
institutions.
" Sec. 112. // 20 USC 1012. // (a)(1) From 90 per centum of the
funds appropriated for this part for each fiscal year, the Secretary
shall--,
"(A) allot to each State having an agreement under section 1203
of this Act an amount which bears the same ratio to 60 per centum
of such amount as the adult population of that State bears to the
adult population of all States, and
"(B) allot 40 per centum of such amount to all States having an
agreement under section 1203 on an equal basis,
except that no State shall receive less than $187,500 in any such fiscal
year. If 90 per centum of the sums appropriated for any fiscal year are
insufficient to pay the allotment specified in clauses (A) and (B) of
the previous sentence and the exception contained in the previous
sentence, the amount of each State's allotment under such clauses (A)
and (B) (but not the amount in the exception) shall be ratably reduced.
If 90 per centum of the sums appropriated for any fiscal year are
insufficient after the application of the previous sentence, the amount
of each State's allotment shall be equal. In case additional funds
become available in making such payments in any fiscal year during which
the second and third sentence of this paragraph are applicable, such
reduced amounts shall be increased on the same basis as they were
reduced.
"(2) Ten per centum of the funds appropriated for this part shall be
available for carrying out section 116.
"(b) If, in any fiscal year, a State does not wish to conduct
comprehensive planning pursuant to section 113, the Secretary shall
allot to such State an amount equal to the amount the State would
otherwise receive for the conduct of programs of continuing education
and information services under this part. The Secretary shall reallot
the funds that would have been used by such State for the conduct of
statewide planning under section 113 to all other States having
agreements under section 1203. Such reallotments shall be made in
proportion to their allotments pursuant to subsection (a).
" Sec. 113. // 20 USC 1013. // (a)(1) Subject to paragraphs (2) and
(3), each State with an agreement pursuant to section 1203 of this Act
shall use at least 15 per centum but not to exceed 20 per centum of its
allotment for the purpose of conducting comprehensive statewide planning
for improving access and retention within the State to postsecondary
educational programs for traditional and nontraditional learners,
coordinating educational and occupational information and counseling
services to youth and adults throughout the State, and promoting more
effective and efficient use of available resources for continuing
education within the State.
"(2) In any fiscal year in which appropriations for this part are
equal to or exceed $18,500,000 but are less than $24,000,000, each State
with an agreement pursuant to section 1203 of this Act shall use at
least 10 per centum but not to exceed 15 per centum of its allotment for
the purpose described in paragraph (1) of this subsection.
"(3) In any fiscal year in which the appropriations for this part are
equal to or exceed $24,000,000, each State having an agreement pursuant
to section 1203 of this Act shall use not to exceed 10 per centum of its
allotment for the purpose described in paragraph (1) of this subsection.
"(b) A State shall submit to the Secretary at the end of each fiscal
year for which sums have been received a list of programs assisted under
this part, a brief description of the purposes of the programs, and an
analysis of the relationship between grants and contracts awarded under
this part and comprehensive statewide planning for postsecondary
education.
"(c) Of the sums granted to States for comprehensive statewide
planning, not less than 50 per centum shall be for the purpose of
carrying out a program of statewide planning for continuing education in
order to improve access for adults within the State to postsecondary
education programs and to promote more effective and efficient use of
available resources, including efforts to ensure equal treatment of
applicants in the evaluation of grant proposals, except that the
Secretary may, upon application, grant a waiver to a State which has
demonstrated that the State has adequately provided for meeting the
needs of adult learners in its statewide planning activities. Such
planning shall give particular consideration to the educational needs of
adults who have been inadequately served by programs of postsecondary
education.
"(d) Planning undertaken pursuant to this section shall be
coordinated, to the maximum extent feasible, with the planning
activities under subpart 4 of part A and part B of title IV and section
485 of this Act; the Vocational Education Act; the Comprehensive
Employment and Training Act; the Older Americans Act of 1965; the
Rehabilitation Act of 1973; the Career Education Incentive Act; the
Adult Education Act; the Veterans Readjustment Assistance Act; and
other Federal, State, and local activities intended to provide outreach,
guidance, counseling, and educational, student aid, and occupational
information to persons within the State.
"(e) Each State may use the funds available for this section to
conduct studies of student financial assistance needs and resources,
information cooridation, continuing education, and other topics
consistent with the purposes of subsections (a) and (c) of this section.
" Sec. 114. // 20 USC 1014. // (a) Each State shall use not less
than $50,000 nor more than 12 per centum of its allotment, whichever is
greater, to conduct programs to develop and coordinate new and existing
educational and occupational information and counseling programs to
eliminate unnecessary duplication and to provide a more comprehensive
delivery of services to both traditional and nontraditional learners
seeking educational information and to youth and adults seeking
occupational information.
"(b) Such educational and occupational information and counseling
programs shall be coordinated to the maximum extent possible with those
authorized by subpart 4 of part A and part B of title IV and section 485
of this Act; the Vocational Education Act; the Comprehensive
Employment and Training Act; the Older Americans Act of 1965; the
Rehabilitation Act of 1973; the Career Education Incentive Act; the
Adult Education Act; the Veterans Readjustment Assistance Act; and
other Federal, State, and local activities intended to provide outreach,
guidance, counseling, and educational, student aid, and occupational
information to persons within the State.
"(c) For the purposes of carrying out this section, each State may
make grants to, and enter into contracts with, institutions of higher
education, public and private institutions and organizations, business,
industry, and labor, or any combination thereof.
" Sec. 115. // 20 USC 1015. // (a) Each State shall use such sums as
may remain available from that State's allotment after reserving the
amounts required to carry out the provisions of sections 113 and 114 of
this part for the purpose of--,
"(1) promoting access to and retention in postsecondary
educational programs for adults whose educational needs have been
inadequately served;
"(2) expanding and improving postsecondary education programs
which help adults develop their occupational potential and prepare
for transitions between education and work;
"(3) eliminating barriers posed by previous education or
training, age, sex, race, handicap, national origin, rural
isolation, or economic circumstance which may place adults at a
disadvantage in seeking postsecondary educational opportunities;
"(4) strengthening statewide and other mechanisms of
information, counseling, and referral which provide access to
postsecondary education and serve the special needs of adults;
and
"(5) developing strategies to promote the financial
self-sufficiency of postsecondary education programs initiated
pursuant to this part.
"(b) To promote the purposes of subsection (a), each State may make
grants to and enter into contracts with public and private institutions
and organizations, institutions of higher education, business, industry,
and labor, or any combination thereof, for programs, such as--,
"(1) the creation or expansion of labor education, training and
technical assistance programs, and the development of cooperative
relationships between State and local labor organizations and
institutions and agencies which provide opportunities for
continuing education;
"(2) the removal of barriers to continuing education caused by
rural isolation or other rural-related factors;
"(3) legal, vocational, and health educational services and
information services for older individuals who use preretirement
education as a means to adjust to retirement;
"(4) the promotion of resource sharing for innovative uses of
technology, including telecommunications, either on an interstate
or intrastate basis, to overcome barriers to postsecondary
educational opportunities;
"(5) educational and occupational information and counseling
services designed to meet the special needs of adult women,
particularly homemakers, and to assist their entry or reentry into
postsecondary education and the labor force;
"(6) the collection and dissemination of information, including
data banks, on sources of student financial assistance and
information designed to assist individuals to make choices among
postsecondary institutions, programs, and other educational
opportunities;
"(7) community education service activities consistent with the
purpose of this section for adults in rural areas;
"(8) postsecondary educational programs suited to individuals
whose educational needs have been inadequately served, especially
the handicapped, older individuals, migrant and seasonal
farmworkers, individuals who can participate in programs only on a
part-time basis, and individuals who otherwise would be unlikely
to continue their education beyond high school;
"(9) child care services to assist individuals desiring to
participate to enter or reenter the field of postsecondary
education and the labor force; and
"(10) the promotion or delivery of postsecondary education
services to women at the place of their employment or in
conjunction with their employment.
"(c) No grant or contract may be entered into to carry out the
activities described in clause (9) of subsection (b) unless the
agreement to make the grant or the contract contains provisions designed
to assure that--,
"(1) the State will provide assurances that the State has
established a cooperative agreement between the State entity
responsible for planning under section 113 and the agency
responsible for coordinating child care services within the State;
and
"(2) funds made available pursuant to such grant or contract
will be used for services furnished only by child care providers
licensed in the State or child care providers who have applied for
renewal of such a license and are determined by the State to be
likely to be approved for renewal.
"(d) Each State may use an amount which does not exceed 5 per centum
of sums available for this section or $40,000, whichever is greater, for
the administration and operation of programs described in subsection (b)
of this section.
" Sec. 116. // 20 USC 1016. // (a) From 10 per centum of the sums
appropriated to carry out the provisions of this part, the Secretary is
authorized to make grants to and enter into contracts with public and
private institutions and organizations, institutions of higher
education, business, industry, labor, and States, or any combination
thereof for activities which--,
"(1) develop and evaluate innovative delivery systems to
increase access to postsecondary education for underserved adults;
"(2) expand the range of educational and community resources
used to meet the needs of underserved adults for continuing
education;
"(3) promote the development of interstate educational delivery
systems, cooperative and consortial arrangements, and programs
(including telecommunications) which more effectively address
regional needs for continuing education;
"(4) stimulate and evaluate creative approaches to the problems
of access for adults inadequately served by existing educational
offerings;
"(5) develop statewide, regional, or national programs to
coordinate educational and occupational information, including
information on student financial assistance, through creation and
expansion of data banks for the more effective coordination and
dissemination of such information;
"(6) assist States to perform their functions of authorizing
institutions of higher education effectively; and
"(7) provide preservice and inservice training to teachers and
administrative personnel involved in child care programs,
including the recruitment and training of low-income parents for
child care positions, and provide specialized training in early
childhood education, and to provide improved teacher certification
criteria for child care programs.
"(b) No grant may be awarded under this section within a State unless
the Secretary has provided the State entity responsible for
comprehensive planning under section 1203, if applicable, an opportunity
to comment on the relationship of the proposed grant to such planning.
" Sec. 117. // 20 USC 1017. // (a) The President shall appoint a
National Advisory Council on Continuing Education consisting of eight
representatives of Federal agencies having postsecondary continuing
education and training responsibilities, including but not limited to,
one representative each from the Departments of Education, Agriculture,
Defense, and Labor, and the Veterans' Administration; and twelve
members, not full-time employees of the Federal Government, who are
knowledgeable and experienced in the field of continuing education,
including State and local government officials, representatives of
business, labor, and community groups, and adults whose educational
needs have been inadequately served. The Advisory Council shall meet at
the call of the chairman but not less than twice a year.
"(b) The Advisory Council shall advise the Secretary in the
preparation of general regulations and with respect to policies and
procedures arising in the administration of this title.
"(c) The Advisory Council shall examine all federally supported
continuing education and training programs and make recommendations with
regard to policies to eliminate duplication and to effectuate the
coordination of programs under this title and other federally funded
continuing education and training programs and services.
"(d) The Advisory Council shall make annual reports to the President,
the Congress, and the Secretary, commencing on September 30, 1981, of
its findings and recommendations, including recommendations for changes
in the provisions of this title and other Federal laws relating to
continuing education and training activities. The President shall
transmit each such report to the Congress with his comments and
recommendations. The Advisory Council shall make such other reports or
recommendations to the President, the Congress, the Secretary, or the
head of any other Federal department or agency as may be appropriate.
"(e) The Advisory Council may utilize the services and facilities of
any agency of the Federal Government as may be necessary. The Advisory
Council may accept, employ, and dispose of gifts or bequests to carry
out its responsibilities under this title.
" Sec. 118. // 20 USC 1018. // For the purposes of this subpart--,
"(1) the term ' Commission' means the Commission on National
Development in Postsecondary Education established under section
102;
"(2) the term ' Advisory Council' means the National Advisory
Council on Continuing Education established under section 117;
"(3) the term 'adults whose educational needs have been
inadequately served' means individuals eighteen years of age or
older who, because of circumstances of age, sex, low income,
handicap, minority status, rural isolation, status of unemployment
or underemployment, lack of education, or other significant
barriers have been discouraged from obtaining equal educational
opportunities;
"(4) the term 'continuing education' means postsecondary
instruction and support services designed to meet the educational
needs of adults, including the expansion of available learning
opportunities for adults whose educational needs are inadequately
served by current educational offerings in their communities; and
"(5) the term 'adult population' means the population eighteen
years old and older of a State and of all the States which shall
be determined by the Secretary on the basis of the most recent
satisfactory data available from the Department of Commerce.
" Sec. 119. // 20 USC 1019. // (a) There is authorized to be
appropriated $20,000,000 for fiscal year 1981; $30,000,000 for fiscal
year 1982; $40,000,000 for fiscal year 1983; $50,000,000 for fiscal
year 1984; and $60,000,000 for fiscal year 1985 to carry out the
provisions of this part.
"(b) Payments under this part shall not exceed two-thirds of the cost
of activities assisted under this part. The non-Federal share may be in
cash or in kind, but may not include payments received under any other
Federal program.
"(c) Each State is authorized to use not more than 50 per centum of
the funds provided under section 113 for the purpose of carrying out
programs under section 115.".
(b) Subpart 5 of part A of title IV of the Act // 20 USC 1070d-2,
1070d-3. // is repealed.
Sec. 201. Title II of the Act is amended to read as follows:
Sec. 201. // 20 USC 1021. // (a) The Secretary shall carry out a
program to assist--,
"(1) institutions of higher education in the acquisition of
library resources, including law library resources, and in the
establishment and maintenance of networks for sharing library
resources in accordance with part A;
"(2) in the training of persons in librarianship and to
encourage research and development relating to the improvement of
libraries (including the promotion of economical and efficient
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 their holdings
available to other libraries whose users have need for research
materials, in accordance with part C; and
"(4) the establishment of a National Periodical System
Corporation, in accordance with part D.
"(b)(1)(A) There are authorized to be appropriated to carry out part
A $10,000,000 for the fiscal year 1981, $30,000,000 for the fiscal year
1982 and for each of the two succeeding fiscal years, and $35,000,000
for the fiscal year 1985.
"(B) There are authorized to be appropriated to carry out part B
$10,000,000 for the fiscal year 1981, $30,000,000 for the fiscal year
1982 and for each of the two succeeding fiscal years, and $35,000,000
for the fiscal year 1985.
"(C) There are authorized to be appropriated to carry out part C
$10,000,000 for the fiscal year 1981, $15,000,000 for the fiscal year
1982 and each of the three succeeding fiscal years.
"(2) Notwithstanding paragraph (1), no funds are authorized to be
appropriated for part D unless the appropriation for each of parts A, B,
and C equals or exceeds the amount appropriated for each such part,
respectively, for fiscal year 1979.
"(c) No grant may be made under this title for books, periodicals,
documents, or other related materials to be used for sectarian
instruction or religious worship, or primarily in connection with any
part of the program of a school or department of divinity.
" Sec. 202. // 20 USC 1022. // 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. 211. // 20 USC 1029. // (a) From the amount appropriated for
this part, the Secretary shall make grants to institutions of higher
education or combinations thereof (and to each branch of an institution
which is located in a community different from that in which its parent
institution is located), and to other public and private nonprofit
library institutions whose primary function is to provide library and
information services to institutions of higher education on a formal,
cooperative basis. The amount of a resource development grant under
this section shall not exceed $10,000.
"(b) A grant under this part may be made only if the application
provides--,
"(1) information about the institution and its library
resources as prescribed by the Secretary in regulations;
"(2) satisfactory assurance that the applicant will expend, for
all library material expenditures (exclusive of construction)
during the fiscal year for which the grant is sought, from funds
other than funds received under this part, an amount not less than
the average annual aggregate amount or the average amount per
full-time equivalent student it expended for such purposes during
the two fiscal years preceding the fiscal year for which
assistance is sought under this part;
"(3) for such fiscal control and fund accounting procedures as
are necessary to assure proper disbursement of and accounting for
Federal funds paid to the applicant under this part; and
"(4) for making such reports as the Secretary may require and
for keeping such records and for affording such access thereto as
the Secretary deems necessary to assure the correctness and
verification of such reports.
"(c) If the Secretary determines, in accordance with regulations,
that there are very unusual circumstances which prevent the applicant
from making the assurance required by subsection (b)(2), the requirement
for such assurance may be waived. For purposes of this subsection, the
term 'very unusual circumstances' means theft, vandalism, fire, flood,
earthquake, or other occurrence which may temporarily reduce the level
of expenditures for library materials and total library purposes, or
which resulted in unusually high expenditures for library materials and
total library purposes.
"(d) Grants under this part may be used only for books, periodicals,
documents, magnetic tapes, phonographic records, audiovisual materials,
and other related library materials (including necessary binding) and
for the establishment and maintenance networks for sharing library
resources with other institutions of higher education.
" Sec. 221. // 20 USC 1031. // From the amount appropriated for this
part, the Secretary shall make grants in accordance with section 222,
223, and 224. Of such amount, one-third shall be available for the
purposes of each such section.
" Sec. 22. // 20 USC 1032. // (a) The Secretary shall make grants
to, and contracts with, institutions of higher education and library
organizations or agencies to assist them in training persons in
librarianship. Such grants or contracts may be used by such
institutions, library organizations, or agencies (1) to assist in
covering the cost of courses of training or study (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 and others
undergoing training 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) Not less than 50 per centum 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. // 20 USC 1033. // The Secretary is authorized to make
grants to, and contracts with, institutions of higher education and
other public or private agencies, institutions, and organizations for
research and demonstration projects related to the improvement of
libraries, training in librarianship, and information technology, and
for the dissemination of information derived from such projects.
" Sec. 224. // 20 USC 1034. // (a) The Secretary is authorized to
make special purpose grants to (1) institutions of higher education to
meet special national or regional needs in the library or information
sciences, (2) combinations of institutions of higher education which
demonstrate a need for special assistance in establishing and
strengthening joint-use library facilities, resources, or equipment, (3)
other public and private non--, profit library institutions 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, and (4) institutions of higher education which
demonstrate a need for special assistance to develop or expand programs
or projects that will service the communities in which the institutions
are located.
"(b) A grant under this section may be made only if the application
therefor (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 (1)
the applicant will expend during the fiscal year 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, and (2) the applicant will expend
during such fiscal year from such other sources for all library purposes
(exclusive of construction) an amount not less than the average annual
amount it expended for such purposes during the two fiscal years
preceding the fiscal year for which the grant is sought under this
section.
" Sec. 231. // 20 USC 1041. // (a)(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) No institution receiving a grant under this part for any fiscal
year may receive a grant under section 211 or 224 for that year.
" Sec. 232. // 20 USC 1042. // In making grants under this part, the
Secretary shall endeavor to achieve broad and equitable geographical
distribution throughout the Nation.
" Sec. 241. // 20 USC 1047. // It is the purpose of this part to
assess the feasibility and advisability of, and, if feasible and
advisable, prepare a design for a national periodical system to serve as
a national periodical resource by contributing to the preservation of
periodical materials and by providing access to a comprehensive
collection of periodical literature to public and private libraries
throughout the United States.
" Sec. 242. // 20 USC 1047a. // There is established a nonprofit
corporation, to be known as the National Periodical System Corporation,
which shall not be considered an agency or establishment of the United
States Government. The Corporation shall be subject to the provisions of
this part, and to the extent consistent with this Act, to the laws of
the jurisdiction where incorporated.
" Sec. 243. // 20 USC 1047b. // (a) The Corporation shall assess the
feasibility and advisability of a national system and, if feasible and
advisable, design such a system to provide reliable and timely document
delivery from a comprehensive collection of periodical literature. A
design may be implemented by the Corporation only in accordance with the
provisions of section 248.
"(b) Any design for a national periodical system shall include
provisions for such system to--,
"(1) acquire current and past issues of periodicals, and to
preserve and maintain a dedicated collection of such documents;
"(2) provide information on periodicals to which the system can
insure access, including those circulated from private sector
sources, and cooperate in efforts improve bibliographic and
physical access to periodicals;
"(3) make such periodicals available through libraries, by
loan, photoreproduction or other means;
"(4) cooperate with and participate in international borrowing
and lending activities as may be appropriate for such purposes;
"(5) ensure that copyright owners who do not wish to
participate in such system are not required to participate;
"(6) ensure that copyright fees are fixed by the copyright
owners for any reproduction or dissemination of a document
delivered through the system;
"(7) complement and not duplicate activities in the private
sector to provide access to periodical literature;
"(8) ensure, to the maximum extent feasible, that such system
periodicals, particulary scholarly periodicals of small
circulation; and
"(9) ensure coordination with existing programs to distribute
periodical literature, including programs of regional libraries
and programs of interlibrary loan and library networks.
"(c) Any design shall include provisions for the role, if any, of the
Corporation in the governance, administration, and operation of the
system.
"(d) Any design shall be accompanied by an estimate of the cost for
each fiscal year of carrying out the system proposed in the design.
" Sec. 244. // 20 USC 1047c. // (a) The Corporation shall have a
Board of Directors, consisting of fifteen members, including fourteen
members appointed by the President, by and with the advice and consent
of the Senate, and the Director of the Corporation.
"(b) The members of the Board appointed by the President shall be
equitably representative of the needs and interests of the Government,
academic and research communities, libraries, publishers, the
information community, authors, and the public. Except for the initial
Board of Directors, the members shall be appointed after consultation
with the Board.
"(c) The members of the initial Board of Directors shall serve as
incorporators and shall take whatever actions are necessary to establish
the Corporation under the laws of the jurisdiction in which it is
incorporated.
"(d) The term of office for each member of the Board (other than the
Director) shall be two years except that any member appointed to fill a
vacancy occurring prior to the expiration of the term for which his
predecessor was appointed shall be appointed for the remainder of such
term. Notwithstanding the preceding provisions of this paragraph, a
member whose term has expired may serve until his sucessor has taken
office.
"(e)(1) The members of the Board shall not, by reason of membership,
be deemed employees of the United States. Except as provided in
paragraph (2), members shall, while engaged in activities of the Board,
be entitled to receive compensation at the rate equal to the daily rate
prescribed for grade GS-18 of the General Schedule // 45 FR 69201. //
under section 5332 of title 5, United States Code, for each day and,
while away from their homes or regular place of business, may be allowed
travel expenses.
"(2) Members of the Corporation who are full-time officers and
employees of the United States shall receive no additional pay,
allowances, or benefits by reason of their service on the Corporation.
"(f) Eight members of the Board shall constitute a quorum.
"(g) The Board shall elect annually one of its members to serve as
the Chairman.
"(h) The Board shall meet annually or at the call of the Chairman or
a majority of its members.
" Sec. 245. // 20 USC 1047d. // (a) The Corporation shall have a
Director, and such other officers as appointed by the Board for the
terms and at rates of compensation fixed by the Board. The Director
shall manage the operations of the Corporation, subject to such rules as
may be prescribed by the Board.
"(b) Subject to such rules as may be prescribed by the Board, the
Director may appoint and fix the pay of personnel and may procure
temporary and intermittent services.
" Sec. 246. // 20 USC 1047e. // (a) The Corporation shall have no
power to issue any shares of stock, or to declare or pay any dividends.
"(b) No part of the incomes or assets of the Corporation shall inure
to the benefit of any director, officer, employee, or any other
individual except as salary or reasonable compensation for services.
"(c) The National Periodical System Corporation shall be exempt from
taxation now or hereafter imposed by the United States, or any territory
or possession thereof, or by any State, county, municipality, or local
taxing authority.
" Sec. 247. // 20 USC 1047f. // (a) The Corporation is authorized
to--,
"(1) obtain grants from and to make contracts with individuals
and with private, State, and Federal agencies, organizations, and
institutions;
"(2) conduct its business, carry on its operations, and have
officers and exercise the power granted by this section in any
State without regard to any qualification or similar statute in
any State;
"(3) lease, purchase, or otherwise acquire, own, hold, improve,
use or otherwise deal in and with any property (real, personal, or
mixed), or any interest therein, wherever situated;
"(4) sell, convey, mortgage, pledge, lease, exchange, and
otherwise dispose of its property and assets; and
"(5) enter into contracts, execute instruments, incur
liabilities, and do all things as are necessary or incidental to
the proper management of its affairs and the proper conduct of its
business.
"(b) To carry out its functions and to engage in the activities
described in subsection (a), the Corporation shall have the usual powers
conferred upon a nonprofit corporation by the jurisdiction in which the
Corporation is incorporated.
"(c) The Corporation may use the United States mails in the same
manner and under the same conditions as departments and agencies of the
United States. The Administrator of General Services shall provide to
the Corporation on a reimbursable basis such administratve support
services as the Corporation may request.
"(d) The Corporation is authorized to accept, hold, administer, and
use gifts, bequests, and devises of property, both real and personal,
for the purpose of aiding or facilitating the authority of the
Corporation pursuant to section 243. For the purpose of Federal income,
estate, and gift taxes, property accepted by the National Periodical
System Corporation shall be a gift, bequest, or devise to the United
States.
"(e) The Corporation shall be subject to the provisions of section
552b of title 5, United States Code.
" Sec. 248. // 20 USC 1047g. // Any design established under this
part shall be submitted to the Congress not later than December 31,
1981, and may not be implemented until the design is approved in whole
or in part by enactment of a joint resolution of the Congress approving
such design.
" Sec. 249. // 20 USC 1047h. // Nothing in this part shall be
considered to amend, affect, or redefine the provisions of title 17,
United States Code, // 17 USC 1. // relating to copyrights.
" Sec. 250. // 20 USC 1047i. // As used in this part--,
"1) the term 'access' means the ability to identify, locate,
and obtain a specific item (generally a periodical article), and
includes both bibliographic access (the ability to identify a
specific item from its description) and physical access to
materials (the ability to obtain the text of an item in an
appropriate form, such as visual, audio, or printed formats);
"(2) the term ' Board' means the Board of Directors of the
National Periodical System Corporation;
"(3) the term 'comprehensive collection' means a collection of
periodical titles which will provide access to approximately 90
percentum of the requests received, except that such titles need
not all be physically located in the same place;
"(4) the term 'copyright owner' means the owner of any one of
the exclusive rights comprised in a copyright;
"(5) the term ' Corporation' means the National Periodical
System Corporation established under this part;
"(6) the term 'dedicated collection' means a collection of
periodicals maintained for the sole purpose of assuring the
provision of permanent physical access;
"(7) the term 'document' means any portion or the entire issue
of a periodical;
"(8) the term 'periodical' means a publication consisting of
issues in a continuous series under the same title published at
regular or irregular intervals, over an indefinite period,
individual issues in the series being numbered consecutively or
each issue being dated; and
"(9) the term 'private sector' means nongovernmental,
nonprofit, and for-profit organizations.
" Sec. 251. // 20 USC 1047j. // (a) There are authorized to be
appropriated, for the purpose of carrying out this part, $750,000 for
each of fiscal years 1981 and 1982, and such sums as may be necessary
for each of the fiscal years 1983, 1984, and 1985.
"(b) In any fiscal year after the joint resolution described in
section 248 is enacted, there are authorized to be appropriated such
additional sums as may be necessary to implement an approved design for
any such fiscal year ending prior to October 1, 1985.".
Sec. 301. Title III of the Act is amended to read as follows:
" Sec. 301. // 20 USC 1051. // (a) The Congress finds that--,
"(1) many institutions of higher education in this era of
declining enrollments and scarce resources face problems which
threaten their ability to survive;
"(2) the problems relate to the management and fiscal
operations of certain institutions of higher education, as well as
to an inability to engage in long-range planning, recruitment
activities, and development activities;
"(3) the solution of the problems of these institutions would
enable them to become viable, thriving institutions of higher
education; and
"(4) these institutions play an important role in the American
system of higher education, and there is a strong national
interest in assisting them in solving their problems and in
stabilizing their management and fiscal operations.
"(b) It is the purpose of this title to assist such institutions
through a program of Federal assistance.
" Sec. 311. // 20 USC 1057. // (a) The Secretary shall carry out a
program, in accordance with this part, to improve the academic quality,
institutional management, and fiscal stability of eligible institutions,
in order to increase their self-sufficiency and strengthen their
capacity to make a substantial contribution to the higher education
resources of the Nation.
"(b) From the sums available for this part under section 347(a)(1),
the Secretary may award grants to any eligible institution with an
application approved under section 341 in order to assist such an
institution to plan, develop, or implement activities that promise to
strengthen the institution. Special consideration shall be given to
applications which propose to engage in the following activities
pursuant to the institution's plan:
"(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.
" Sec. 312. // 20 USC 1058. // For purposes of this part:
"(1) The term 'educational and general expenditures' means the
total amount expended by an institution of higher education for
instruction, research, public service, academic support (including
library expenditures), student services, institutional support,
scholarships and fellowships, operation, and maintenance
expenditures for physical plant, and any mandatory transfers which
the institution is required to pay by law.
"(2) The term 'eligible institution' means--,
// 20 USC 1070a. //
the average
amount of which is high in comparison with the average
amount of all grants awarded under such subpart to
students at such institutions, and (II) which, in the
case
of junior or community colleges, has an enrollment
which includes a substantial percentage of students
receiving awards under subpart 1 of title IV, the
average
amount of which is high in comparison with the average
amount of all grants awarded under such subpart to
students at such institutions;
comparison
with the average educational and general
expenditures per full-time equivalent undergraduate
student of institutions that offer similar instruction;
community
college;
offered
or is, according to such an agency or association,
making
reasonable progress toward accreditation;
satisfies
the requirements contained in clauses (i) and (ii) of
such
subparagraph.
For purposes of the determination of whether an institution is an
eligible institution under this paragraph, the factor described
under subparagraph (A)(i) shall be given twice the weight of the
factor described under subparagraph (A)(ii).
"(3) The term 'full-time equivalent students' means the sum of
the number of students enrolled full time at an institution, plus
the full-time equivalent of the number of students enrolled part
time (determined on the basis of the quotient of the sum of the
credit hours of all part-time students divided by twelve) at such
institution.
"(4) The term 'junior or community college' means an
institution of higher education--,
State
in which the institution is located and who have the
ability
to benefit from the training offered by the institution;
such a
degree, or
mathematics,
or the physical or biological sciences, designed
to prepare a student to work as a technician or at the
semiprofessional level in engineering, scientific, or
other technological fields requiring the understanding
and application of basic engineering, scientific, or
mathematical
principles of knowledge.
" Sec. 313. // 20 USC 1059. // (a) The Secretary may award a grant
to an eligible institution under this part for--,
"(1) not to exceed three years, or
"(2) not less than four nor more than seven years,
subject for each fiscal year to the availability of appropriations
therefor. The Secretary shall not accept the application of an eligible
institution for a grant under both paragraphs (1) and (2) for a fiscal
year.
"(b) The Secretary shall not award a grant under this part to an
eligible institution that has, for any prior fiscal year, received a
grant under subsection (a)(2).
"(c) Notwithstanding subsection (a), the Secretary may award a grant
to an eligible institution under this part for a period of one year for
the purpose of assisting such institution in the preparation of plans
and applications under this part.
" Sec. 321. // 20 USC 1060. // (a) The purpose of this part is to
provide for a program of short-term Federal assistance to strengthen the
planning, management, and fiscal capabilities of institutions with
special needs.
"(b) From the sums available for this part under section 347(a)(1),
the Secretary may make grants to any institution with special needs with
an application approved under section 341 in order to assist such an
institution to plan, develop, or implement activities consistent with
the purpose of this part. Such activities shall include--,
"(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.
" Sec. 322. // 20 USC 1061. // (a) For purposes of this part:
"(1) The term 'educational and general expenditures' means the
total amount expended by an institution of higher education for
instruction, research, public service, academic support (including
library expenditures), student services, institutional support,
scholarships and fellowships, operation, and maintenance
expenditures of physical plant, and any mandatory transfers which
the institution is required to pay by law.
"(2) The term 'institution with special needs' means--,
// 20 USC 1070. //
the
average amount of which assistance is high in comparison
with the average amount of all assistance provided
under such title to students at such institutions, and
(II)
which, in the case of junior or community colleges, has
an enrollment which includes a substantial percentage
of students receiving need-based assistance under title
IV, the average amount of which assistance under title
comparison with the average amount of all assistance
provided under such title to students at such
institutions;
comparison
with the average educational and general
expenditures per full-time equivalent undergraduate
student of institutions that offer similar instruction;
community
college;
offered
or is, according to such an agency or association,
making
reasonable progress toward accreditation;
satisfies
the requirements contained in clauses (i), (ii), and
(vi) of such
subparagraph and which is located in a community
different
from that in which its parent institution is located.
For purposes of the determination of whether an institution is an
eligible institution under this paragraph, the factor described
under subparagraph (A)(i) shall be given the same weight as the
factor described under subparagraph (A)(ii), and the Secretary may
also consider the factors specified under subsection (b) of this
section.
"(3) The term 'full-time equivalent students' means the sum of
the number of students enrolled full time at an institution, plus
the full-time equivalent of the number of students enrolled part
time at such institution (determined on the basis of the quotient
of the sum of the credit hours of all part-time students divided
by twelve).
"(4) The term 'junior or community college' means an
institution of higher education--,
State
in which the institution is located and who have the
ability
to benefit from the training offered by the institution;
such a
degree, or
mathematics,
or the physical or biological sciences, designed
to prepare a student to work as a technician or at the
semiprofessional level in engineering, scientific, or
other technological fields requiring the understanding
and application of basic engineering, scientific, or
mathematical
principles of knowledge.
"(b) In determining whether an institution is an institution with
special needs under subsection (a)(2), the Secretary may also consider
the following factors:
"(1) extreme financial limitations requiring low faculty
salaries, low costs of instruction for students, and low library
expenditures;
"(2) a little or no endowment, whether or not unrestricted;
"(3) a high student to faculty ratio;
"(4) a substantial percentage of students receiving need-based
Federal student assistance;
"(5) limited library resources;
"(6) a low percentage of faculty with doctorate degrees;
"(7) poor physical facilities and limited resources to maintain
physical facilities;
"(8) little or no support from foundations, alumni, or
corporations;
"(9) limited or no sponsored research or faculty publications;
"(10) inadequate development offices and a limited capacity for
long-range planning; and
"(11) poor or inadequate fiscal management and accounting
procedures.
" Sec. 323. // 20 USC 1062. // The Secretary may make a grant to any
institution with special needs under this part for a period of not more
than five years. A grant to enhance the planning capabilities of an
institution shall not exceed one year.
" Sec. 324. // 20 USC 1063. // The Federal share of the cost of
grants made to institutions with special needs under this part shall be
100 per centum for the first two years in which an institution receives
a grant, 90 per centum for the third year an institution receives a
grant, 80 per centum for the fourth year an institution receives a
grant, and 70 per centum for the fifth year an institution receives a
grant.
for
Assistance Under Part A or Part B
" Sec. 331. // 20 USC 1064. // (a)(1) From the sums available under
section 347(a)(2) for each fiscal year, the Secretary may award a
challenge grant to each institution--,
"(A) which is an eligible institution under part A or would be
considered to be such an institution if section 312(2)(A)(iii)
referred to a postgraduate degree rather than a bachelor's degree;
or
"(B) which is an institution with special needs under part B or
would be considered to be such an institution if section 322(
a)(2)(A)(iii) referred to a postgraduate degree rather than a
bachelor's degree.
"(2) The Secretary may waive the requirements set forth in
subparagraphs (A) and (B) of paragraph (1) with respect to a
postgraduate degree in the case of any institution otherwise eligible
under such paragraph for a challenge grant upon determining that the
institution makes a substantial contribution to medical education
opportunities for minorities and the economically disadvantaged.
"(b) The Secretary may make a grant under this section for a period
of not more than 5 years. A grant under this section may be used for
the programs and activities described in part A or part B, as the case
may be.
" Sec. 332. // 20 USC 1065. // (a) Any institution eligible for a
challenge grant under section 331(a) may apply for such a grant under
section 341, except that the application for the purpose of this part
shall--,
"(1) provide evidence that funds are available to the applicant
to match funds that the Secretary is requested to make available
to the institution as a challenge grant;
"(2) in the case of an application by a public institution,
contain the recommendations of an appropriate State agency
responsible for higher education in the State, or provide evidence
that the institution requested the State agency to comment but the
State agency failed to comment; and
"(3) in the case of an application by an institution described
under section 331(a)(1)(B), demonstrate how challenge grant funds
will be used to eradicate the conditions enumerated in section
322(b) (1) through (11), and lead to greater financial
independence.
"(b) Not later than April 1 of the fiscal year preceding the fiscal
year in which any grant is to be made under this part, the Secretary
shall determine which institutions will receive challenge grants under
this part and notify the institutions of the amount of the grant.
"(c) In approving applications for grants under this part, preference
shall be given to institutions which are receiving, or have received,
grants under part A or part B.
" Sec. 341. // 20 USC 1066. // (a) Any institution which is eligible
for assistance under this title may submit to the Secretary an
application for assistance at such time, in such form, and containing
such information, as may be necessary to enable the Secretary to
evaluate its need for assistance. Subject to the availability of
appropriations to carry out this title, the Secretary may approve an
application for a grant under this title if the application meets the
requirements of subsection (b) and shows that the applicant is eligible
for assistance in accordance with the part of this title under which the
assistance is sought.
"(b) An institution, in its application for a grant, shall--,
"(1) set forth, or describe how it will develop, a
comprehensive development plan to strengthen the institution's
academic quality and institutional management, and otherwise
provide for institutional self-sufficiency and growth (including
measurable objectives for the institution and the Secretary to use
in monitoring the effectiveness of activities under this title);
"(2) set forth policies and procedures to ensure that Federal
funds made available under this title for any fiscal year will be
used to supplement and, to the extent practical, increase the
funds that would otherwise be made available for the purposes of
section 311(b) or 321(b), and in no case supplant those funds;
"(3) set forth policies and procedures for evaluating the
effectiveness in accomplishing the purpose of the activities for
which a grant is sought under this title;
"(4) provide for such fiscal control and fund accounting
procedures as may be necessary to ensure proper disbursement of
and accounting for funds made available to the applicant under
this title;
"(5) provide for making such reports, in such form and
containing such information, as the Secretary may require to carry
out his functions under this title (including not less than one
report annually setting forth the institution's progress toward
achieving the objectives for which the funds were awarded), and
for keeping such records and affording such access thereto, as the
Secretary may find necessary to assure the correctness and
verification of such reports;
"(6) provide that the institution will comply with the
limitations set forth in section 346;
"(7) include such other information as the Secretary may
prescribe; and
"(8) describe in a comprehensive manner any development project
for which funds are sought under the application and include--,
development
project, including the estimated time required to
complete each such component;
consists
of several components (as described by the applicant
pursuant
to subparagraph (A)), a statement identifying those
components which, if separately funded, would be sound
investments of Federal funds and those components which
would be sound investments of Federal funds only if
funded
under this title in conjunction with other parts of the
development project (as specified by the applicant);
sought by
the applicant under this title, and a similar evaluation
regarding priorities among the components of any single
development project (as described by the applicant
pursuant
to subparagraph (A));
of
more than one year, a statement of reasons explaining
why
funds are necessary for each year of such period and
why a
single year award would be inadequate;
prepare for
the critical financial problems that all institutions
of higher
education will face during the subsequent decade as a
result
of declining enrollment, increased energy costs, and
other
problems;
applicant;
and
involves
the expenditure of more than $25,000, as identified in
the
budget referred to in subparagraph (F).
" Sec. 342. // 20 USC 1067. // (a)(1) The Secretary may waive the
requirements set forth in section 312(2)(A)(ii) or section 322(a)(2)(
A)(ii) if the Secretary determines, based on persuasive evidence
submitted by the institution, that the institution's failure to meet
that criterion is due to factors which, when used in the determination
of compliance with such criterion, distort such determination, and that
the institution's designation as an eligible institution under part A or
as an institution with special needs under part B (as the case may be)
is otherwise consistent with the purposes of such parts.
"(2) The Secretary shall submit to the Congress each year a report
concerning the institutions which, although not satisfying the criterion
contained in section 312(2)(A)(ii) or section 322(a)(2)(A)( ii), have
been determined to be eligible institutions under part A or institutions
with special needs under part B, as the case may be. Such report
shall--,
"(A) identify the factors referred to in paragraph (1) which
were considered by the Secretary as factors that distorted the
determination of compliance with section 312(2)(A)(ii) or section
322(a)(2)(A)(ii), as the case may be; and
"(B) contain a list of each institution determined to be an
eligible institution under part A or as an institution with
special needs under part B and include a statement of the reasons
for each such determination.
"(b) The Secretary may waive the requirement set forth in sections
312(2)(v) and 322(a)(2)(v) in the case of an institution--,
"(1) located on or near an Indian reservation or a substantial
population of Indians, if the Secretary determines that the waiver
will substantially increase higher education opportunities
appropriate to the needs of American Indians;
"(2) wherever located, if the Secretary determines that the
waiver will substantially increase higher education opportunities
appropriate to the needs of Spanish-speaking people;
"(3) wherever located, if the Secretary determines that the
waiver will substantially increase higher education opportunities
appropriate to the needs of individuals living in rural areas,
whose needs are for the most part unserved by other postsecondary
education institutions;
"(4) wherever located, if the Secretary determines that the
waiver will substantially increase higher education opportunities
appropriate to the needs of low-income individuals; or
"(5) wherever located, if the Secretary determines that the
institution has traditionally served substantial numbers of black
students.
" Sec. 343. // 20 USC 1068. // (a)(1) All applications submitted
under this title by institutions of higher education shall be read by a
panel of readers composed of individuals selected by the Secretary. The
Secretary shall ensure that no individual assigned under this section to
review any application has any conflict of interest with regard to the
application which might impair the impartiality with which the
individual conducts the review under this section.
"(2) All readers selected by the Secretary shall receive thorough
instruction from the Secretary regarding the evaluation process for
applications submitted under this title and consistent with the
provisions of this title, including--,
"(A) explanations and examples of the types of activities
referred to in section 311(b) that should receive special
consideration for grants awarded under part A and of the types of
activities referred to in section 321(b) that should receive
special consideration for grants awarded under part B;
"(B) an enumeration of the factors to be used to determine the
quality of applications submitted under this title; and
"(C) an enumeration of the factors to be used to determine
whether a grant should be awarded for a project under this title,
the amount of any such grant, and the duration of any such grant.
"(b) In awarding grants under this title, the Secretary shall take
into consideration the recommendations of the panel made under
subsection (a).
"(c) Not later than June 30 of each year, the Secretary shall notify
each institution of higher education making an application under this
title of--,
"(1) the scores given the applicant by the panel pursuant to
this section,
"(2) the recommendations of the panel with respect to such
application, and
"(3) the reasons for the decision of the Secretary in awarding
or refusing to award a grant under this title, and any
modifications, if any, in the recommendations of the panel made by
the Secretary.
" Sec. 344. // 20 USC 1069. // (a) The Secretary may make grants to
encourage cooperative arrangements--,
"(1) with funds available to carry out part A, between
institutions eligible for assistance under part A; or
"(2) with funds available to carry out part B, between
institutions eligible for assistance under part B;
for the activities described in section 311(b) or section 321(b), as the
case may be, so that the resources of the cooperating institutions might
be combined and shared to achieve the purposes of such parts and avoid
costly duplicative efforts.
"(b) The Secretary shall give priority to grants for the purposes
described under subsection (a) whenever the Secretary determines that
the cooperative arrangement is geographically and economically sound.
"(c) Grants to instututions having a cooperative arrangement may be
made under this section for a period as determined under section 313 or
323, as the case may be.
" Sec. 345. // 20 USC 1069a. // (a) Each institution which the
Secretary determines to be an eligible institution under part A or an
institution with special needs under part B shall be eligible for
waivers in accordance with subsection (b).
"(b)(1) Subject to, and in accordance with, regulations promulgated
for the purpose of this section, in the case of any application by an
institution referred to in subsection (a) for assistance under any
programs specified in paragraph (2), the Secretary is authorized, if
such application is otherwise approvable, to waive any requirement fora
non-Federal share of the cost of the program or project, or, to the
extent not inconsistent with other law, to give, or require to be given,
priority consideration of the application in relation to applications
from other institutions.
"(2) The provisions of this section shall apply to any program
authorized by title II, IV, VII, or VIII of this Act.
"(c) The Secretary shall not waive, under subsection (b), the
non-Federal share requirement for any program for applications which, if
approved, would require the expenditure of more than 10 per centum of
the appropriations for the program for any fiscal year.
" Sec. 346. // 20 USC 1069b. // The funds appropriated under section
347 may not be used--,
"(1) for a school or department of divinity or any religious
worship or sectarian activity;
"(2) for an activity that is inconsistent with a State plan for
desegregation of higher education applicable to such institution;
"(3) for an activity that is inconsistent with a State plan of
higher education applicable to such institution; or
"(4) for purposes other than those set forth in the approved
application under which the funds were made available to the
institution.
" Sec. 347. // 20 USC 1069c. // (a)(1) There are authorized to be
appropriated to carry out parts A and B $175,000,000 for the fiscal year
1985, $185,000,000 for the fiscal year 1983, $200,000,000 for the fiscal
year 1984, and $220,000,000 for the fiscal year 1985. Of the amounts
appropriated under this paragraph for each fiscal year, 50 per centum
shall be made available to carry out part A and 50 per centum shall be
made available to carry out part B.
"(2) There are authorized to be appropriated to carry out part C
$25,000,000 for the fiscal year 1982, $35,000,000 for the fiscal year
1983, $45,000,000 for the fiscal year 1984, and $50,000,000 for the
fiscal year 1985.
"(b) In the event of a multile year award to any institution under
this title, the Secretary shall make funds available for such award from
funds appropriated for this title for the fiscal year in which such
funds are to be used by the recipient.
"(c)(1) Of the sums appropriated under subsection (a)(1) for any
fiscal year for part A, the Secretary shall make available to use for
the purposes of each such part--,
"(A) not less than 24 per centum to institutions that are
junior or community colleges, and
"(B) the remainder to institutions that plan to award a
bachelor's degree during that year.
"(2) Of the sums appropriated under subsection (a)(1) for any fiscal
year for part B, the Secretary shall make available to use for the
purposes of each such part--,
"(A) not less than 30 per centum to institutions that are
junior or community colleges, and
"(B) the remainder to institutions that plan to award a
bachelor's degree during that year.
"(d) Of the sums appropriated under subsection (a)(1) for the purpose
of part A for any fiscal year, the Secretary shall make available not
less than 25 per centum for grants under section 313(a)( 2). Any funds
made available under this subsection for such grants which are not
expended during the fiscal year for which such funds were appropriated
shall remain available for expenditure for the purpose of making such
grants during subsequent fiscal years.
"(e) The Secretary shall assure that in each fiscal year the amount
available under part B for institutions with special needs that
historically serve substantial numbers of black students will not be
less than 50 per centum of the amount received by such institutions for
fiscal year 1979.".
Institutions of
Higher Education
Sec. 401. // 20 USC 1070. // Section 401 (a) of the Act is
amended--,
(1) by striking out "qualified students" and inserting in lieu
thereof "eligible students (defined in accordance with section
484)";and
(2) by striking out "of exceptional need who, for lack of such
a grant, would be unable to obtain the benefits of a postsecondary
education" in paragraph (2) and inserting in lieu thereof "who
demonstrate financial need".
Sec. 402. // 20 USC 1070a. // (a) Section 411(a)(1) of the Act is
amended to read as follows;
" Sec. 411. (a)(1)(A) The Secretary shall, during the period
beginning July 1, 1972, and ending September 30, 1985, pay to each
eligible student (defined in accordance with section 484) for each
academic year during which that student is in attendance at an
institution of higher education, as an undergraduate, a basic grant in
the amount for which that student is eligible, as determined pursuant to
paragraph (2).
"(B) The purpose of this subpart is to provide a basic grant that (i)
as determined under paragraph (2), will meet in academic year 1985 -
1986, 70 per centum of a student's cost of attendance not in excess of
$3,700; and (ii) in combination with reasonable parental or independent
student contribution and supplemented by the programs authorized under
subparts 2 and 3 of this part, will meet 75 per centum of a student's
cost of attendance, unless the institution determines that greater
amount of assistance would better serve the purposes of section 401.
"(C) Basic grants made under this subpart shall be known as ' Pell
Grants'.".
(b)(1) Section 411(a)(2)(i) of the Act is amended to read as follows:
"(2)(A)(i) The amount of the basic grant for a student eligible under
this part shall be--,
"(I) $1,900 for academic year 1981 - 1982,
"(II) $2,100 for academic year 1982 - 1983,
"(III) $2,300 for academic year 1983 - 1984,
"(IV) $2,500 for academic year 1984 - 1985, and
"(V) $2,600 for academic year 1985 - 1986,
less an amount equal to the amount determined under section 482 to be
the expected family contribution with respect to that student for that
year.".
(2) Section 411(a)(2)(A)(ii) of this Act // 20 USC 1070a. // is
amended by striking out " February 1 of each year" and inserting in lieu
thereof " January 1, 1981, October 1, 1981, and on October 1 of each
succeeding year".
(c)(1) Section 411(a)(2)(B)(i) of the Act is amended to read as
follows:
"(B)(i) The amount of a basic grant to which a student is entitled
under this subpart for any academic year shall not exceed--,
"(I) 50 per centum of the cost of attendance (as defined under
section 482(d)) at the institution at which the student is in
attendance for that year, when the maximum grant is less than or
equal to $1,900;
"(II) 55 per centum of such cost of attendance when the maximum
basic is more than $1,900 but is less than $2,100;
"(III) 60 per centum of such cost of attendance when the
maximum basic grant is at least $2,100 but is less than $2,300;
"(IV) 65 per centum of such cost of attendance when the maximum
basic grant is at least $2,300 but is less than $2,600; and
"(V) 70 per centum of such cost of attendance when the maximum
basic grant is $2,600.".
(2) Section 411(a)(2)(B)(ii) of the Act is amended by striking out
"actual" each time it appears.
(3) Section 411(a)(2)(B)(iv) of the Act is repealed.
(d)(1) Section 411(a)(3) of the Act is repealed.
(2) Paragraph (4) of section 411(a) of the Act is redesignated as
paragraph (3).
(e) Section 411(a)(3) of the Act (as redesignated by subsection (d)(
2)) is amended to read as follows:
"(3) The period during which a student may receive basic grants shall
be the period required for the completion of the first undergraduate
baccalaureate course of study being pursued by that student at the
institution at which the student is in attendance. Nothing in this
section shall exclude from eligibility courses of study which are
noncredit or remedial in nature which are determined by the institution
as necessary to help the student be prepared for the pursuit of a first
undergraduate baccalaureate degree.".
(f) Section 411(b)(3)(B)(i) of the Act is amended to read as follows:
"(B)(i) If, during any period of any fiscal year, the funds available
for payments under this subpart are insufficient to satisfy fully all
entitlements, the amount paid with respect to each such entitlement, as
calculated prior to the cost of attendance limitation provided in
section 411(a)(2)(B)(i) under this subpart, shall be--,
"(I) the full amount in the case of any student's eligibility
index which is less than 601;
"(II) 90 per centum of the amount when the student's
eligibility index is 601 but less than 801;
"(III) 80 per centum of the amount when the student's
eligibility
index is 801 but less than 1001;
"(IV) 70 per centum when the student's eligibility index is
1001 but less than 1201;
"(V) 60 per centum when the student's eligibility index is 1201
but less than 1601; and
"(VI) 50 per centum when the student's eligibility index is
1601 or greater.
For the purpose of this division, a 'student's eligibility index' is the
index of need of a student established by the Secretary in carrying out
section 482, relating to the family contribution schedule.".
(g) Section 411(b)(5) of the Act // 20 USC 1070a. // is amended to
read as follows:
"(5)(A) For any fiscal year ending prior to October 1, 1985, if--,
"(i) the appropriation for making grants under subpart 2 of
this part for that fiscal year does not at least equal
$370,000,000,
"(ii) the appropriation for State student incentive grants
under subpart 3 of this part
// 20 USC 1070c. // for that fiscal year does not at least equal
$76,750,000,
"(iii) the appropriation for work-study payments under section
441 of this title for that fiscal year does not at least equal
$550,000,000,and
"(iv)(I) the amount available for Federal capital contributions
to student loan funds for that fiscal year from funds appropriated
under section 461
// 20 USC 1087aa. // does not at least equal $286,000,000,(II) the
sum of the amounts available under both sections 461 and 468 for
Federal capital contributions to student loan funds for that
fiscal year does not at least equal $286,000,000,or (III) the
amount available under section 468 is not sufficient to provide
Federal capital contributions to such funds for that fiscal year
in an amount which equals or exceeds the total amount which was
available for student loans during the preceding fiscal year,
no payment may be made in excess of $1,800 on the basis of entitlements
established under this subpart in excess of such amount.
"(B) For any fiscal year ending prior to October 1, 1985, if--,
"(i) the appropriation for making grants under subpart 2 of
this part for that fiscal year does not at least equal
$400,000,000,
"(ii) the appropriation for State student incentive grants
under subpart 3 of this part for that fiscal year does not at
least equal $76,750,000,
"(iii) the appriopriation for work-study payments under section
441 of this title for that fiscal year does not at least equal
$550,000,000,and
"(iv)(I) the amount available for Federal capital contributions
to student loan funds for that fiscal year from funds appropriated
under section 461 does not at least equal $286,000,000,(II) the
sum of the amounts available under both sections 461 and 468 for
Federal capital contributions to student loan funds for that
fiscal year does not at least equal $286,000,000,or (III) the
amount available under section 468 is not sufficient to provide
Federal capital contributions to such funds for that fiscal year
in an amount which equals or exceeds the total amount which was
available for student loans during the preceding fiscal year,
no payment may be made in excess of $1,899 on the basis of entitlements
established under this subpart in excess of such amount.
"(C) For any fiscal year ending prior to October 1, 1985, if--,
"(i) the appropriation for making grants under subpart 2 of
this part for that fiscal year does not at least equal
$440,000,000,
"(ii) the appropriation for State student incentive grants
under subpart 3 of this part for that fiscal year does not at
least equal $76,750,000,
"(iii) the appropriation for work-study payments under section
441 of this title for that fiscal year does not at least equal
$550,000,000,and
"(iv)(I) the amount available for Federal capital contributions
to student loan funds for that fiscal year from funds appropriated
under section 461 does not at least equal $286,000,000, (II) the
sum of the amounts available under both section 461 and 468 for
Federal capital contributions to student loan funds that fiscal
year does not at least equal $286,000,000, or (III) the amount
available under section 468 is not sufficient to provide Federal
capital contributions to such funds for that fiscal year in an
amount which equals or exceeds the total amount which was
available for student loans during the preceding fiscal year,
no payment may be made in excess of $2,099 on the basis of entitlements
established under this subpart in excess of such amount.
"(D) For any fiscal year ending prior to October 1, 1985, if--,
"(i) the appropriation for making grants under subpart 2 of
this part
// 20 USC 1070b. //
for that fiscal year does not at least equal $460,000,000,
"(ii) the appropriation for State student incentive grants
under subpart 3 of this part
// 20 USC 1070c. //
for that fiscal year does not at least equal $76,750,000,
"(iii) the appropriation for work-study payments under section
441 of this title for that fiscal year does not at least equal
$550,000,000,and
"(iv)(I) the amount available for Federal capital contributions
to student loan funds for that fiscal year from funds appropriated
under section 461 does not at least equal $286,000,000, (II) the
sum of the amounts available under both sections 461 and 468 for
Federal capital contributions to student loan funds for that
fiscal year does not at least equal $286,000,000, or (III) the
amount available under section 468 is not sufficient to provide
Federal capital contributions to such funds for that fiscal year
in an amount which equals or exceeds the total amount which was
available for student loans during the preceding fiscal year,
no payment may be made in excess of $2,299 on the basis of entitlements
established under this subpart in excess of such amount.
"(E) For any fiscal year ending prior to October 1, 1985, if--,
"(i) the appropriation for making grants under subpart 2 of
this part for that fiscal year does not at least equal
$480,000,000,
"(ii) the appropriation for State student incentive grants
under subpart 3 of this part for that fiscal year does not at
least equal $76,750,000,
"(iii) the appropriation for work-study payments under section
441 of this title for that fiscal year does not equal at least
$550,000,000, and
"(iv)(I) the amount available for Federal capital contributions
to student loan funds for that fiscal year from funds appropriated
under section 461 does not at least equal $286,000,000, (II) the
sum of the amounts available under both sections 461 and 468 for
Federal capital contributions to student loan funds for that
fiscal year does not at least equal $286,000,000, or (III) the
amount available under section 468 is not sufficient to provide
Federal capital contributions to such funds for that fiscal year
in an amount which equals or exceeds the total amount which was
available for student loans during the preceding fiscal year,
no payment may be made equal to or in excess of $2,500 on the basis of
entitlements established under this subpart which are equal to or in
excess of such amount.".
(h) Subsections (d) and (e) of section 411 of the Act // 20 USC
1070a. // are repealed.
Sec. 403. // 20 USC 1070b. // (a) Section 413 A(a) of the Act is
amended by striking out "who, for lack of financial means, would be
unable to obtain such benefits without such a grant" and inserting in
lieu thereof "who demonstrate financial need in accordance with the
provisions of section 482".
(b)(1) The first sentence of section 413 A(b)(1) of the Act // 20 USC
1070b. // is amended by inserting before the period a comma and the
following: "and $350,000,000 for the fiscal year 1981, and for each of
the succeeding fiscal years ending prior to October 1, 1985".
(2) Section 413 A(b)(3) of the Act is amended by inserting "second"
before "fiscal year" the second time it appears in such section.
(c)(1) Section 413 B(a)(2)(A) of the Act // 20 USC 1070b-1. // is
amended to read as follows:
"(2)(A) The amount of the payment to any student pursuant to
paragraph (1) shall be equal to the amount determined by the
institution, in accordance with the provisions of section 482, to be
needed by that student to enable him to pursue a course of study at the
institution, except that such amount shall not exceed $2,000.".
(2) Section 413 B(a)(2)(B) of the Act is amended by adding at the end
thereof the following new sentence: " For a student enrolled for less
than a full academic year, the minimum payment required shall be reduced
proportionately.".
(3) Section 413 B(a)(2) of the Act is further amended by striking out
subparagraph (C).
(4) Section 413 B(b) of the Act is amended to read as follows:
"(b)(1) The period during which a student may receive supplemental
grants shall be the period required for the completion of the first
undergraduate baccalaureate course of study being pursued by that
student at the institution at which the student is in attendance.
"(2) A supplemental grant awarded under this subpart shall entitle
the student to whom it is awarded to payments pursuant to such grant
only if the student meets the requirements of section 484, except as
provided in section 413 C(c).".
(d) Section 413 C of the Act is amended to read as follows:
INSTITUTIONS
" Sec. 413 C. // 20 USC 1070b-2. // (a) An individual shall be
eligible for the award of a supplemental grant under this subpart by an
institution of higher education which, in accordance with section 487,
has an agreement with the Secretary applicable to this subpart, if the
individual makes application at a time and in a manner consistent with
the requirements of the Secretary and that institution, and meets the
requirements of section 484.
"(b) From among individuals who are eligible for supplemental grants
for each fiscal year, the institution shall, in accordance with the
agreement under section 487, and within the amount allocated to the
institution for that purpose for that year under section 413 D(b),
select individuals who are to be awared such grants and determine, in
accordance with section 413 B, the amounts to be paid to them.
"(c) An eligible institution may use not more than 10 per centum of
its allocation for less-than-half-time undergraduate who are determined
by the institution to be in need of such grants and who meet the
requirements of section 484, other than the requirement of clause (2) of
section 484(a).".
(e)(1) Section 413 D(a)(1) of the Act // 20 USC 1070b-3. // is
amended by striking out "persons" each place it appears and inserting in
lieu thereof "undergraduates".
(2) Section 413 D(a)(2) is amended by striking out "section 431 A(
b)(2)" and inserting in lieu thereof "section 413 A(b)(2)".
(3) Section 413 D(b)(1)(B)(ii) of the Act is amended to read as
follows:
"(ii) Allocations under division (i) by the Secretary to such
institutions shall be made in accordance with a formula which determines
institutional need for funds under this subpart by substracting from 75
per centum of total student expenses the sum of expected family or
independent student contributions, awards made under subparts 1 and 3 of
this part, // 20 USC 1070a. 20 USC 1070c. // and 25 per centum of
grants and wawards made by the institution from its own resources. In
addition, the Secretary, in establishing equitable criteria, shall not
issue any regulation which has the effect of penalizing institutions
that under existing State law must provide scholarships or grant
assistance from their own funds and yet are not free under laws in
effect on January 1, 1979, either to select the recipients of such
assistance or to adjust the criteria by which the recipients are
selected. The formula established under this division shall not result
in any institution receiving an amount less than--,
"(I) 100 per centum of the amount such institution received and
used under this section for fiscal year 1979 in the case of any
fiscal year for which the appropriation for this part is less than
$400,000,000;
"(II) 80 per centum of such amount in the case of any fiscal
year for which such appropriation is at least $400,000,000 but
less than $420,000,000;
"(III) 60 per centum of such amount in the case of any fiscal
year for which such appropriation is at least $420,000,000 but
less than $440,000,000;
"(IV) 40 per centum of such amount in the case of any fiscal
year for which such appropriation is at least $440,000,000 but
less $460,000,000; or
"(V) 20 per centum of such amount in the case of any fiscal
year for which such appropriation is at least $460,000,000 but
less than $480,000,000.".
(4) Section 413 D(b)(2) of the Act // 20 USC 1070b-3. // is amended
by adding at the end thereof the following new sentence: " Such
allocation shall be made in accordance with the formula prescribed by
regulation under division (ii) of paragraph (1)(B) of this subsection.".
(f) Section 413 D(b) of the Act is amended by redesignating paragraph
(3) as paragraph (4) and by inserting after paragraph (2) the following
new jparagraph:
"(3) Each institution receiving allocations under this subsection
from apportionments made to the State under subsection (a)(1) and under
subsection (a)(2) may use its allocations for initial supplemental
grants and for continuing supplemental grants in such manner as the
institution determines will best achieve the purposes of this subpart.".
Sec. 404. (a) Section 415 A of the Act is amended to read as
follows:
" Sec. 415 A. // 20 USC 1070c. // (a) It is the purpose of this
subpart to make incentive grants available to the States to assist them
in providing grants to eligible students attending institutions of
higher education.
"(b)(1) There are authorized to be appropriated $100,000,000 for each
of the fiscal years 1981 and 1982, $150,000,000 for fiscal year 1983,
$200,000,000 for fiscal year 1984, and $250,000,000 for fiscal year
1985, for payments to the States for grants to eligible students under
this subpart.
"(2) Sums appropriated pursuant to paragraph (1) for any fiscal year
shall remain available for payments to States for the award of student
grants under this subpart until the end of the fiscal year succeeding
the fiscal year for which such sums were appropriated.".
(b) Section 415 B(a)(1)(A) of the Act // 20 USC 1070c-1. // is
amended by inserting before the period a comma and the following:
"except that no State shall receive less than the State received for
fiscal year 1979".
(c) Section 415 C of the Act // 20 USC 1070c-2. // is amended--,
(1) in subsection (a), by striking out "shall submit" and
inserting inlieu thereof "shall have a State agreement pursuant to
section 1203 and shall submit";
(2) in subsection (b)(1), by inserting "under section 1203"
immediately after "agency";
(3) in subsection (b)(2), by striking out "$1,500" and
inserting in lieu thereof "$2,000", and by striking out "as an
undergraduate";
(4) in subsection (b)(4), by inserting immediately before the
semicolon at the end thereof the following: "or in any State in
which participation of nonprofit institutions of higher education
is in violation of a statute of the State which was enacted prior
to October 1, 1978"; and
(5) in subsection (b), by striking out "and" at the end of
clause (5), by redesignating clause (6) as clause (8), and by
inserting after clause (5) the following new clauses:
"(6) provides that institutions of higher education, with the
approval of the State agency, may use any proportion of the
payments received in any fiscal year for grants to otherwise
eligible students who fail to meet the requirement of section
484(a)(2);
"(7) provides for State expenditures under such program of an
amount not less than the average annual aggregate expenditures for
the preceding three fiscal years or the average annual expenditure
per full-time equivalent student for such years; and".
(d) Section 415 E of the Act // 20 USC 1070c-4. // is repealed.
BACKGROUNDS
Sec. 405. Subpart 4 of part A of title IV of the Act is amended to
read as follows:
" Sec. 417 A. // 20 USC 1070d. // (a) The Secretary shall, in
accordance with the provisions of this subpart, 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 special services for such students
who are pursuing programs of postsecondary education, and to train
persons serving or preparing for service in programs and projects so
designed.
"(b)(1) 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, and, in
exceptional circumstances, secondary schools for planning, developing,
or carrying out one or more of the services assisted under this subpart.
"(2) In making grants and contracts under this subpart,the Secretary
shall consider the prior experience of service delivery under the
particular program for which funds are sought by each applicant.
"(c) For the purpose of making grants and contracts under this
subpart there are authorized to be appropriated $400,000,000 for fiscal
year 1982 and such sums as may be necessary for each of the succeeding
fiscal years ending prior to October 1, 1985.
"(d) For the purposes of this subpart--,
"(1) the term 'first generation college student' means a person
neither of whose parents completed a baccalaureate degree; and
"(2) the term 'low-income individual' means an individual from
a family whose taxable income for the preceding year did not
exceed 150 per centum of an amount equal to the proverty level
determined by using criteria of poverty established by the Bureau
of the Census.
"(e) No individual who is an eligible veteran, as that term is
defined by section 1652(a) of title 38, United States Code, shall be
deemed ineligible to participate in any program under this subpart by
reason of such individual's age.
" Sec. 417 B. // 20 USC 1070d-1. // (a) 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 youth to complete
seccondary 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) A talent search project assisted under this subpart may include,
in addition to the services described in paragraphs (1), (2), and (3) of
subsection (a), tutorial services for youths being encouraged to
undertake or reenter programs of postsecondary education if such
tutorial services are not otherwise available to such youths through a
project assisted under this subpart.
"(c) In approving applications for talent search projects under this
subpart 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 that such participants be persons who either have
completed six years of elementary education or are at least twelve
years of age but not more than twenty-seven 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 417 E; 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 this section or under section 417 E.
"(d) In approving applications for talent search projects under this
subpart for any fiscal year, the Secretary shall require assurances that
the project will be located in a setting accessible to the persons
proposed to be served by the project.
" Sec. 417 C. // 20 USC 1070d-1a. // (a) 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) Any upward bound project assisted under the subpart 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; and
"(9) programs and activities as described in paragraphs (1)
through (8) which are specially designed for students of limited
English proficiency.
"(c) In approving applications for upward bound projects under this
subpart 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 be first
generation college students;
"(3) require that there be determination, 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 eight years of elementary education and are at least
thirteen years of age but not more than nineteen years of age,
unless the imposition of any such limitation would defeat the
purposes of this section.
"(d) 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. 417 D. // 20 USC 1070d-1b. // (a) The Secretary shall carry
out a program to be known as special services for disadvantaged students
(hereinafter referred to as 'special services') which shall be designed
to provide supportive services to persons participating in the projects.
"(b) A special services project assisted under this subpart 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;
"(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; and
"(8) programs and activties as described in paragraphs (1)
through (7) which are specially designed for students of limited
English proficiency.
"(c) In approving applications for special services project under
this subpart 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--,
"(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 physically handicapped;
"(3) require that there be a determination, with respect to
each participat in such project, that the participant has a need
for academic support in order to pursu successfully a program of
education beyond high school; and
"(4) require that such participants be enrolled or accepted for
enrollment at the institution which is the recipient of the grant
or contract.
"(d) In approving applications for special services projects under
this subpart for any fiscal year, the Secretary shall require an
assurance from the institution which is the recipient of the grant or
contract that each student enrolled in the project will receive
sufficient financial assistance to meet that student's full financial
need.
" Sec. 417 E. // 20 USC 1070d-1c. // (a) The Secretary shall carry
out a program of paying up to 75 per centum of the cost of establishing
and operating programs 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) An educational opportunity center assisted under this subpart
may provide, in addition to the services described in clauses (1) and
(2) of subsection (a), tutorial and counseling services for persons
participating in the project if such tutorial and counseling services
are not otherwise available through a project assisted under this
subpart.
"(c) In approving applications for educational opportunity centers
under this subpart 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 417 B; 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
417 B.
" Sec. 417 F. // 20 USC 1070d-1d. // For the purpose of improving
the operation of the programs and projects authorized by this subpart,
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, and
workshops 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. 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.".
STUDENTS
Sec. 406. Subpart 5 of part A of title IV of the Act is amended to
read as follows:
Families
Are Engaged in Migrant and Seasonal Farmwork
" Sec. 418 A. // 20 USC 1070d-2. // (a) The Secretary shall maintain
and expand existing secondary and postsecondary high school equivalency
program and college assistance migrant program projects, which shall be
designed to provide services to students of families who are engaged in
migrant and seasonal farmwork. The services authorized by this subpart
include--,
"(1) instruction in reading, writing, study skills,
mathematics, communication skills, and other subjects necessary
for success beyond high school, and in preparation for the
examination for a certificate of high school equivalency;
"(2) personal and academic counseling;
"(3) outreach and recruitment, special admissions, and
financial assistance;
"(4) tutorial services;
"(5) career-oriented work study;
"(6) housing support and on-campus residential programs;
"(7) activities designed to acquaint youths participating in
the project with the range of career options available to them;
"(8) exposure to cultural events, academic programs and other
activities not usually available to migrant youth; and
"(9) other essential supportive services, as needed to ensure
the success of eligible migrant and seasonal farmwork students at
the secondary and postsecondary levels.
"(b) There is authorized to be appropriated $9,600,000 for the fiscal
year 1981, $12,000,000 for the fiscal year 1982, $14,000,000 for the
fiscal year 1983, $16,000,000 for the fiscal year 1984, and $18,000,000
for the fiscal year 1985, to carry out the provisions of this subpart.".
Sec. 407. Section 420 of the Act is amended to read as follows:
INSTITUTIONS OF
HIGHER EDUCATION
" Sec. 420. // 20 USC 1070e-1. // (a)(1) During the period beginning
July 1, 1972, and ending September 30, 1985, each institution of higher
education shall be entitled to a payment under, and in accordance with,
this section during any fiscal year if--,
"(A) the number of persons who are veterans receiving
vocational rehabilitation under chapter 31 of title 38, United
States Code,
// 38 USC 1501 //
or veterans receiving educational assistance under chapter 34 of
such title,
// 38 USC 1651 //
and who are in attendance as undergradutate students at such
institution during any academic year, equals at least--,
preceding
academic year, or
per
centum of such undergraduate students which is less than
such per centum for the preceding academic year; and
"(B) the number of such persons is at least 25.
"(2) With respect to any academic year ending on or before September
30, 1986, each institution which has qualified for payment under this
section for the preceding year shall be entitled during such academic
year, notwithstanding the provisions of paragraph (1)(A), to a payment
under this section if--,
"(A) the number of persons referred to in paragraph (1) equals
at least the number which bears the same ratio to the number of
such recipients who were in attendance at such institution during
the first academic year in which the institution was entitled to
payments under this section as the number of such recipients in
all institutions of higher education during the academic year for
which the determination is made bears to the number of such
recipients in all institutions of higher education for the first
such academic year; or
"(B) in the event that subparagraph (A) of this paragraph is
not satisfied, the Secretary determines, on the basis of evidence
presented by such institution, that such institution is making
reasonable efforts, taking into consideration the extent to which
the number of persons referred to in such paragraph (1) falls
short of meeting the ratio criterion set forth in such
subparagraph (A), to continue to recruit, enroll, and provide
necessary services to veterans.
"(3) For any fiscal year beginning after September 30, 1980, the
Secretary may waive the provisions of paragraph (1) of this subsection
for any institution of higher education which has qualified for payment
under this section for any preceding fiscal year but subsequently became
ineligible, if
"(A) the institution would have been eligible had section 420(
a)(2) been in effect when such institution became ineligible,
"(B) the institution has had a full-time office of veterans'
affairs since that institution was so eligible, and
"(C) the appropriations made available in any such fiscal year
for this section are in excess of (i) $14,380,000, or (ii) the
amount requested for carrying out this section in the budget of
the President submitted under section 201 of the Budget and
Accounting Act, 1921,
// 31 USC 11. //
whichever is greater, by an amount sufficient to make payments to
all institutions meeting the requirements of clauses (A) and (B)
of this paragraph.
"(b)(1) The amount of the payment to which any institution shall be
entitled under this section for any fiscal year shall be--,
"(A) $300 for each person who is a veteran receiving vocational
rehabilitation under chapter 31 of title 38, United States Code,
// 38 USC 1501 //
or a veteran receiving educational assistance under chapter 34 of
such title 38,
// 38 USC 1651 //
and who is in attendance at such institution as an undergraduate
student during such year; and
"(B) in addition, $150 for each person who is in attendance at
such institution as an undergraduate student during such year and
who has been the recipient of educational assistance under
subchapter V or VI of chapter 34 of such title 38,
// 38 USC 1690, 1695. //
or who has a service-connected disability as defined in section
101(16) of such title 38, or who is disabled, as determined in
accordance with regulations promulgated by the Secretary after
consultation with the Administrator of Veterans' Affairs.
"(2) In any case where a person on behalf of whom a payment is made
under this section attends an institution on less than a full-time
basis, the amount of the payment on behalf of that person shall be
reduced in proportion to the degree to which that person is not
attending on a full-time basis. In no case shall a payment be made on
behalf of a person who attends an institution on less than a half-time
basis.
"(c)(1) An institution of higher education shall be eligible to
receive the payment to which it is entitled under this section only if
it makes application therefor to the Secretary. An application under
this section shall be submitted at such time or times, in such manner,
in such form and containing such information as the Secretary determines
necessary to carry out the functions of the Secretary under this title,
and shall--,
"(A) set forth such policies, assurances, and procedures as
will insure that--,
section
and available to it after the requirements of
subsection (e)
have been met will be used solely to defray
instructional
expenses in academically related programs of the
applicant;
divinity
or for any religious worship or sectarian activity;
related
programs of the institution, an amount equal to at
least the
average amount so expended during the three years
preceding
the year for which the grant is sought; and
"(B) contain such other statement of policies, assurances, and
procedures as the Secretary may require by regulation in order to
protect the financial interests of the United States; and
"(C) set forth such plans, policies, assurances, and procedures
as will insure that the applicant will make an adequate effort--,
which
has responsibility for veterans' outreach, recruitment,
and
special education programs, including the provision of
educational,
vocational, and personal counseling for veterans,
educationally
disadvantaged veterans for postsecondary education (I)
under subchapter V of chapter 34 of title 38, United
States
Code,
// 38 USC 1690. //
and (II) in the case of any institution located near a
military installation, under subchapter VI of such
chapter
34,
// 38 USC 1695. //
or
handicapped veterans, incarcerated veterans, and
educationally
disadvantaged veterans), recruiting, and counseling
activities through the use of funds available under
federally
assisted work-study programs (with special emphasis on
the
veteran-student services program under section 1685 of
such
title 38),
program)
in order to make maximum use of the benefits
available under section 1692 of such title 38, and
under
section 612 A of title 38, United States Code, and
with the
veterans employment and training initiatives authorized
under the Comprehensive Employment and Training Act
// 29 USC 801 //
and under chapters 41 and 42 of title 38, United
States Code,
// 38 USC 2001 //
in order to assist in serving the readjustment,
rehabilitation,
personal counseling, and employment needs of veterans,
except that an institution which the Secretary determines, in accordance
with regulations jointly prescribed by the Secretary and the
Administrator of Veterans' Affairs (hereinafter referred to as the '
Administrator'), cannot feasibly itself, in terms of the number of
veterans in attendance there, carry out any or all of the programs set
forth in subclauses (i) through (v) of clause (C), may carry out such
program or programs through a consortium agreement with one or more
other institutions of higher education and shall be required to carry
out such programs only to the extent that the Secretary determines, in
accordance with regulations jointly prescribed by the Secretary and the
Administrator, is appropriate in terms of the number of veterans in
attendance at such institution. The adequacy of efforts to meet the
requirements of clause (C) of this paragraph shall be determined by the
Secretary, based upon the recommendations of the Administrator, in
accordance with criteria established in regulations jointly prescribed
by the Secretary and the Administrator.
"(2) The Secretary shall not approve an application under this
subsection unless he determines that the applicant will implement the
requirements of clause (C) of paragraph (1) within the first academic
year during which it receives a payment under this section.
"(d)(1) The Secretary shall pay to each institution of higher
education which has had an application approved under subsection (c) the
amount to which it is entitled under this section.
"(2) The maximum amount of payments to any institution of higher
education, or any branch which is located in a community which is
different from that in which the parent institution thereof is located,
in any fiscal year shall be $75,000. In making payments under this
section for any fiscal year, the Secretary shall apportion the
appropriation for making such payments, from funds which become
available as a result of the limitation on payments set forth in the
preceding sentence, in such a manner as will result in the receipt by
each institution which is eligible for payment under this section of the
first $9,000 (or the amount of its entitlement for that fiscal year,
whichever is the lesser) and then additional amounts up to the
limitation set forth in the preceding sentence.
"(e) Not less than 90 per centum of the amounts paid to any
institution under subsection (d) in any fiscal year shall be used to
implement the requirement of clause (C)(i) of paragraph (1) of
subsection (c), and to the extent that such funds remain after
implementing such requirement, funds limited by such 90 per centum
requirement shall be used for implementing the requirements of
subclauses (ii) through (v) of clause (C) of such paragraph (1), except
that the Secretary may, in accordance with criteria established in
regulations jointly prescribed by the Secretary with the Administrator,
waive the requirement of this subsection to the extent that he finds
that such institution is adequately carrying out all such requirements
without the necessity for such application of such amount of the
payments received under this subsection.
"(f) The Secretary, in carrying out the provisions of this section,
shall seek to assure the coordination of programs assisted under this
section with programs carried out by the Veterans' Administration
pursuant to title 38, United States Code, // 38 USC 101. // and the
Administrator shall provide all assistance, technical consultation, and
information otherwise authorized by law as necessary to promote the
maximum effectiveness of the activities and programs assisted under this
section.
"(g) The program provided for in this section shall be administered
by an identifiable administrative unit in the Department of Education.".
Sec. 411. (a) Section 424(a) of the Act // 20 USC 1074. // is
amended--,
(1) by striking out "1981" and inserting in lieu thereof
"1986"; and
(2) by striking out "1985" and inserting in lieu thereof
"1990".
(b) Section 428(a)(5) of the Act // 20 USC 1078. // is amended--,
(1) by striking out "1981" and inserting in lieu thereof
"1986"; and
(2) by striking out "1985" and inserting in lieu thereof
"1990".
Sec. 412. (a) Section 425(a)(1) of the Act // 30 USC 1075. // is
amended--,
(1) by redesignating clauses (A), (B), and (C), as clauses (B),
(C), and (D), respectively;
(2) by inserting immediately before clause (B) (as so
redesignated) the following new clause:
"(A) that in the case of an independent student (defined in
accordance with section 482(c)(2)) who has not successfully
completed a program of undergraduate education, the total of such
loans may not exceed $3,000,"; and
(3) by striking out "clause (B)" in the last sentence of such
section and inserting in lieu thereof "clause (C)".
(b) Section 425(a)(2) of the Act is amended by striking out "$7,500,
in the case of any student who has not successfully completed a program
of undergraduate education, and $15,000 in the case of any graduate or
professional student" and inserting in lieu thereof "$12,500 in the case
of any student (other than an independent student) who has not
successfully completed a program of undergraduate education, $15,000 in
the case of any independent student who has not successfully completed a
program of undergraduate education, and $25,000 in the case of any
graduate or professional student".
(c) The matter preceding division (i) of section 428(b)(1)(A) of the
Act // 20 USC 1078. // is amended--,
(1) by inserting after "student" the following: "(other than
an independent student)"; and
(2) by inserting after "undergraduate education," the
following:
"or not more than $3,000 in the case of an independent
student (defined in accordance with section 482(c)(2)) who has not
successfully completed a program of undergraduate education,".
(d) Section 428(b)(1)(B) of the Act is amended by striking out
"$7,500, in the case of any student who has not successfully completed a
program of undergraduate education, and $15,000 in the case of any
graduate or professional student" and inserting in lieu thereof "$12,500
in the case of any student (other than an independent student) who has
not successfully completed a program of undergraduate education, $15,000
in the case of any independent student who has not successfully
completed a program of undergraduate education, and $25,000 in the case
of any graduate or professional student".
(e) Section 428 A of the Act // 20 USC 1078-1. // is amended--,
(1) by striking out "$2,500 (in the case of a student who has
not successfully completed a program of undergraduate education)
or $5,000 (in the case of a graduate or professional student)" in
subsection (a)(1)(A) and in subsection (a)(2)(A) and inserting in
lieu thereof in each such place the following: "$2,500 (in the
case of a student, other than an independent student, who has not
successfully completed a program of undergraduate education),
,3,000 (in the case of an independent student (as defined in
section 482(c)(2)) who has not successfully completed a program of
undergraduate education), or $5,000 (in the case of a graduate or
professional student)"; and
(2) by striking out "$7,500 in the case of any student who has
not successfully completed a program of undergraduate education,
and $15,000 in the case of any graduate or professional student"
in subsection (a)(1)(A) and in subsection (a)(2)(A) and inserting
in lieu thereof in each such place the following: "$12,500 in the
case of any student (other than an independent student) who has
not successfully completed a program of undergraduate education,
$15,000 in the case of any independent student who has not
successfully completed a program of undergraduate education, and
$25,000 in the case of any graduate or professional student".
(f) Part B of title IV of the Act // 20 USC 1071. //, // 20 USC
1075. //, // 20 USC 1078. //, // 20 USC 1078-1. // is further amended
by inserting immediately before the period at the end of section
425(a)(2) and immediately before the semicolon at the end of sections
428(b)(1)(B)8 428 A(a)(1)(A), and 428 A(a)(2)(A) the following: ",
except that the Secretary may increase the limit applicable to graduate
or professional students who are pursuing programs which the Secretary
determines are exceptionally expensive".
Sec. 413. (a) Section 427 (a)(2)(C) // 20 USC 1077. // is amended--,
(1) by inserting "or is an officer in the Commissioned Corps of
the Public Health Service" immediately after " Armed Forces of the
United States" in clause (ii); and
(2) by striking out "or (v)" and inserting in lieu thereof the
following: "(v) not in excess of three years during which the
borrower is in service, comparable to the service referred to in
clauses (iii) and (iv), as a full-time volunteer for an
organization which is exempt from taxation under section 501(c)(
3) of the Internal Revenue Code of 1954;
// 26 USC 501. // (vi) not in excess of two years
during which the borrower is serving an intership, the successful
complettion of which is required in order to rerceive professional
recognition required to begin professional practice or service;
(vii) not in excess of three years during which the borrower is
temporarily totally disabled, as established by sworn affidavit of
a qualified physician, or during which the borrower is unable to
secure employment by reason of the care required by a spouse who
is so disabled; or (viii)".
(b) Section 428(b)(1)(M) of the Act // 20 USC 1078. // is amended--,
(1) by inserting "or is an officer in the Commissioned Corps of
the Public Health Service" immediately after " Armed Forces of the
United States" in clause (ii); and
(2) by striking out "or (v)" and inserting in lieu thereof the
following: "(v) not in excess of three years during which the
borrower is in service, comparable to the service referred to in
clauses (iii) and (iv), as a full-time volunteer for an
organization which is exempt from taxation under section 501(c)(
3) if the Internal Revenue Code of 1954; (vi) not in excess of
two years during which the borrower is serving an intership, the
successful completion of which is required in order to receive
professional recognition required to begin professional practice
or service; (vii) not in excess of three tears during which the
borrower is temporarily totally disabled, as established by sworn
affidavit of a qualified physician, or during which the borrower
is unable to secure employment by reason of the care required by a
spouse who is so disabled, or (viii)".
(c) Section 427(a)(2)(C) fi tge Act us anended--,
(1) by striking out "and any such period" and inserting in lieu
thereof "that any such period", and
(2) by inserting before the comma at the end thereof a comma
and the following: "and that no repayment of principal of any
loan for any peropd pf study, training, service, or unemployment
described in this clause or any combination thereof shall begin
until six months after the completion of such period or
combination thereof".
(d) Section 428(b)(1)(M) is amended by inserting before the semicolon
at the end thereof a comma and the following: "and that no repayment of
principal of any loan for any period of study, training, service, or
unemployment described in this clause or any combination thereof shall
begin until six months after the completion of such period or
combination thereof".
(e) Section 435 of the Act // 20 USC 1085. // is amended by adding
at the end thereof the following new subsection:
"(j) The term 'temporarily totally disabled' when used with respect
to a borrower means a borrower who, by reason of injury or illness,
cannot be expected to be able to atten an eligible institution or to be
gainfully employed during a reasonable period of recovery from such
injury or illness not to exceed three years. Such term when used with
respect to the spouse of a borrower means a spouse who, by reason of
injury or illness, cannot be expected to be gainfully employed during a
reasonable period of recovery from such injury or illness not to exceed
three years and who during such period required continuous nursing or
other similar services.".
Sec. 414. Section 428 of the Act // 20 USC 1078. // is amended by
adding at the end thereof the following new subsection:
"(h)(1) From sums advanced by the Association pursuant to section
439(p), each State agency and nonprofit private institution or
organization with which the Secretary has an agreement under subsection
(b) of this section or an eligible lender in a State describe in section
435(g)(1) (D) or (F) of the Act // 20 USC 1085. // is authorization to
make loans directly to students otherwise unable to obtain loans under
this part.
"(2)(A) Each State agency or nonprofit private institution or
organization which has an agreement under subsection (b) of this section
or an eligible lender in a State described in section 435(g)(1) (D) or
(F) and which has an application approved under section 439(p)( 2) may
receive advances under section 439(p) for each fiscal year in an amount
necessary to meet the demand for loans under this section. The amount
such agency, institution, organization, or lender is eligible to receive
may not exceed 25 per centum of the average of the loans guaranteed by
that agency, institution, organization, or lender for the three years
preceding the fiscal year for which the determination is made. Whenever
the determination required by the preceding sentence cannot be made
because the agency, institution, organization, or lender does not have
three years previous experience, the amount such agency, institution,
organization, or lender is eligible to receive may not exceed 25 per
centum of the loans guaranteed under a program of a State of comparable
size.
"(B) Each State agency or nonprofit private institution or
organization which has an agreement under subsection (b) of this section
and each eligible lender in a State described in section 435( g)(1) (D)
or (F) // 20 USC 1085. // shall repay advances made under section
439(p) in accordance with agreements entered between the Association and
such agency, institution, organization, or lender.
"(3) Loans made pursuant to this subsection shall have the same
terms, conditions, and benefits as all other loans made under this
part.".
Sec. 415. (a)(1) Par B of the Act is amended by inserting
immediately after section 427 the following new section:
" Sec.427 A. // 20 USC 1077a. // (a) With respect toany loan to
cover the cost of instruction for any period of instruction beginning on
or afteer January 1, 1981, the rate of interest applicable toany
borrower shall--,
"(1) not exceed 7 per centum per annum on the unpaid principal
balance of the loan in the case of any borrower who, on the date
of entering into the note or other wirtten evidence of that loan,
has an outstanding balance of principal or interest on any loan
made, insured, or guaranteed under this part, other than a loan
for which the interest rate is determined under paragraph (2) or
(3) of this subsection;
"(2) except as provide in paragraph (3), be 9 per centum per
annum on the unpaid principal balance of the loan in the case of
any borrower who, on the date of entering into the note or other
written evidence of that loan, has no outstanding balance of
principal or interest on any loan made, insured, or guaranteed
under this part, or who has such an outstanding balance on a loan
for which the interest rate is determined under this paragraph;
or
"(3) be 8 per centum per annum on the unpaid principal balance
of the loan in the case of any borrower not subject to paragraph
(1) or (2) for any loan to cover the cost of education for any
period of enrollment beginning on or after a date which is three
months after a determination made under subsection (b).
"(b) If for any twelve-month period beginning on or after January 1,
1981, the Secretary, after consultation with the Secretary of the
Treasury, determines that the average of the bond equivalent rates of
ninety-one-day Treasury bills auctioned for such twelve-month period is
equal to or less than 9 per centum, the interest rate for loans under
this part shall be the rate prescribed in subsection (a)(3) for
borrowers described in such subsection.
"(c) Nothing inthis section shall be construed to prohibit a lender
from charging a borrower interest at a rate less than the rate which is
applicable under this part.".
"(2) Section 427(b) of the Act // 20 USC 1077. // is amended by
striking " No maximum and inserting in lieu thereof " Except as provided
in section 427 A, no maximum".
(3) Section 428(a)(3)(B)(ii) of the Act // 20 USC 1078. // is
amended by striking out "7 per centum per annum on the unpaid principal
balance" and inserting in lieu thereof "the applicable interest rate
under this part".
(4) Section 428(b)(1)(F) of the Act is amended by inserting
immediately before the semicolon at the end thereof a comma and the
following: "except as otherwise require by section 427 A".
(5) Section 428(d) of the Act // 20 USC 1078. // is amended by
striking out "( per centum per annum" and inserting in lieu thereof "the
rate specified in this part".
(b)(1)(A) Section 427(a)(2)(B) of the Act // 20 USC 1077. // is
amended by striking out "nine-to-twelve-month period" the first time it
appears and inserting in lieu thereof "six months".
(B) Such section 427(a)(2)(B) is further amended by striking out
"nine months nor later than one year" and inserting in lieu thereof "six
months".
(2)(A) Section 428(b)(1)(E) of the Act // 20 USC 1078. // is amended
by striking out "nine-to-twelve-month period" the first time it appears
and inserting in lieu thereof "six months".
] B) Such section 428(b)(1)(E) is further amended by striking out
"nine months nor later than one year" in both places that it appears and
inserting in lieu thereof "six months".
Sec. 416. (a)(1) Section 430(b) of the Act // 20 USC 1080. // is
amended by inserting "(1) after "(b)" and by adding at the end thereof
the following new paragraph:
"(2)(A) For the purpose of promoting responsible repayment of loans
covered by Federal loan insurance pursuant tothis part, the Secretary
shall enter into cooperative agreements with credit bureau organizations
providing for the exchange of information concerning student borrowers
in accordance with the requirements of this paragraph. For the purpose
of assisting such organiztions to comply with the Fair Credit Reporting
Act, // 15 USC 1681. // such agreements may provide for timely response
by the Secretary to requests from such organizations for responses to
objections raised by such borrowers. Subject to the requirements of
subparagraph (C), such agreements shall provide for the disclosure by
the Secretary to such organizations with respect to any loan for which
the Secretary has received a notice of default under subsection (a) of
this section of--,
"(i) the date of disbursement and the amount of any such loan;
"(ii) information concerning collection of any such loan,
including information concerning the status of any defaulted loan
on which the Secretary has made a payment pursuant to subsection
(a) of this section; and
"(iii) the date of cancellation of the note upon completion of
repayment by the borrower of any such loan or payments by the
Secretary pursuant to section 437.
// 20 USC 1087, //
"(B) Such agreements may also provide for the disclosure by such
organizations to the Secretary, upon receipt from the Secretary of a
notice under subparagraph (A)(ii) that such a loan is in default, of
information concerning the borrower's location or other information
which may assist the Secretary in proceeding to collection of the
defaulted amount.
"(C) Agreements entered into pursuant to this paragraph shall contain
such provisions as may be necessary to ensure that--,
"(i) no information is disclosed by the Secretary unless its
accuracy and completeness have been verified, and no information
stating that a loan is in default is disclosed until the Secretary
has made a reasonable effort to collect the debt;
"(ii) as to any information so disclosed, such organizations
will be promptly notified of, and will promptly record, any change
submitted by the Secretary with respect to such information, or
any objections by the borrower with respect to any such
information, as required by section 611 of the Fair Credit
Reporting Act (15 U.S.C. 1681i);
"(iii) no use will be made of any such information which would
result in the use of collection practices with respect to such a
borrower that are not fair and reasonable or that involve
harassment, intimidation, false or misleading representations, or
unnecessary communication concerning the existence of such loan or
concerning any such information; and
"(iv) except for disclosures made to obtain the borrower's
location, the Secretary (I) shall not disclose any such
information until he has notified the borrower that such
information will be disclosed to credit bureau organizations
unless the borrower enters into repayment of his loan, but (II)
shall, if the borrower has not entered into repayment within a
reasonable period of time, but not less than thirty days from the
date such notice has been sent to the borrower, disclose the
information required by this subsection.
"(D)(i) The Secretary shall, within ninety days after the date of
enactment of this paragraph, take such steps as may be necessary to
establish the disclosure of information described in subparagraph (A)
(i), (ii), and (iii) as a routine use in accordance with section 552a(
b)(3) of title 5, United States Code, and to establish a system for the
prompt notification of any borrower of any disclosure made pursuant to
this paragraph.
"(ii) Information disclosed by the Secretary to credit bureau
organizations under the requirements of this paragraph shall not
constitute a system of records within the meaning of section 552a of
title 5, United States Code (the Privacy Act of 1974); and credit
bureau organizations which enter into agreements with the Secretary
under this paragraph shall not be considered Government contractors
within the meaning of that Act.".
(2) Section 427(a)(2) of the Act // 20 USC 1077. // is amended by
redesignating suparagraphs (H) and (I) as subparagraphs (I) and (J),
respectively, and by inserting after subparagraph (G) the following new
subparagraph:
"(H)(i) contains a notice of the system of disclosure of
information concerning such loan to credit bureau organizations
under section 430(b)(2), and (ii) provides that the lender on
request of the borrower will provide information on the repayment
status of the note to such organizations,".
(b) Section 430(c) of the Act is amended by adding at the end thereof
the following nrw sentence: " Any forbearance which is approved by the
Secretary under this subsection wiht respect tothe payment of a loan
shall not be considered as indicating that a holder of a federally
insured loan has failed to ercise reasonable care and due diligence in
the colleation of the loan.".
(c) Section 432 of the Act // 20 USC 1082. // is amended by adding
at the end thereof the following new subsection:
"(e) Notwithstanding any other provision of law, the Secretary may
provide to eligible lenders, and to any State or any nonprofit private
institution or organization having a guaranty agreement under section
428(c)(1), // 20 USC 1078. // any information with respect to the names
and addreses of borrowers or other relevant information which is
available to the Secretary, from whatever source such information may be
derived.".
Sec. 417. (a) Section 428(b)(1)n H) of the Act // 20 USC 1078. //
is amended by inserting before the semicolon a comma anf the following:
"and insures that the proceeds of the premium will not be used for
incentive payments to lenders".
(b)(1) Section 428 (c)(6)(A)(ii) of the Act is amended--,
(A) by striking out "and" the first time it appears and
inserting in lieu thereof a comma; and
(B) by inserting after "prevention " a comma and the following:
"and the administrative costs of monitioring the enrollment and
repayment status of students".
(2) Section 428(c)(6)(B) is amended--,
(A) by striking out "and" at the end of clause (i) and
inserting in lieu thereof a comma;
(B) by inserting "and" at the end of clause (ii); and
(C) by adding after clause (ii) the following:
"(iii) 'administrative costs of monitoring the enrollment and
repayment status of students' means any administrative costs by a
guaranty agency which are directly related to ascertaining the
student's enrollment status, prompt notification to the lender of
such status, an audit of the note agreement to determine if the
provisions of that agreement are consistent with the records of
the guaranty agency as to the principal amunt of the loan
guaranteed, and an examination of the note to assure that the
repayment provisions are consistent with the provisions of this
part,".
(3) Section 428(f)(1)(A) fo the Act is amended--,
(A) by striking out "or" at the end of clause (iii);
(B) by redesignating clause (iv) as clause (v); and
(C) by inserting after clause (iii) the following new clause:
"(iv) the administrative costs of monitoring the enrollment and
repayment status of students; or".
(4)( Section 428(f)(1) of the Act is amended by striking out "(f)(
1)(A)" and inserting in lieu thereof "(f)(1)" and by striking out
subparagraphs (B)and(C).
(B) Such section is further amended by redesignating clauses (i)
through (v) as clauses (A) through (E), respectively.
(5) Section 428(f)(2) of the Act is amended--,
( by striking out "or" at the end of clause (iii);
(B) by redesignating clause (iv) as clause (v); and
(C) by inserting after clause (iii) the following new clause:
"(iv) the administrative costs of monitoring the enrollment and
repayment status of students; ot".
(6) Section 428(f)(3) of the Act is amended--,
(A) by striking out "and" at the end of clause (B);
(B) by striking out the period at the end of clause (C) and
inserting in lieu thereof a comma and the word "and"; and
(C) by adding after clause (C) the following new clause:
"(D) 'administrative costs ofmonitoring the enrollment and
repayment status of students' means any administrative costs by a
guaranty agency which are directly related to ascertaining the
student's enrollment status, prompt to the lender of
such status, an audit of the note agreement to determine if the
provisions of that agreement are consistent with the records of
the guaranty agency as to the principal amount of the loan
guranteed, and an examination of the note to assure that the
repayment provisions are consistent with the provisions of this
part,".
(c) Section 428(f)(3)(A) of the Act // 20 USC 1078. // is amended by
redesignating clauses (iv) and (v) as clauses (vi) and (vii)
respectively, and by inserting after clause (iii) the following new
clauses: "(iv) the costs of providing interest and special allowance
computation and billing services to lenders, (v) 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,".
(d) Section 428 of the Act is amended by adding at the end thereof
the following new subsection:
"(i)(1) Any State agency or any nonprofit private institution or
organization which has an agreement under subsection (b) of this section
may enter into an agreement with any eligible lender (other than an
eligible institution or an agency or instrumentality of the State) for
the purpose of authorizing 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 agency or any nonprofit
private institution or organization in accordance with the provisions of
paragraph (2) of this subsection.
"(2) Each State agency or each nonprofit private institution or
organization entering into an agreement under paragraph (1) of this
subsection is authorized to--,
"(A) make the disbursements in accordance with the note
evidencing the loan;
"(B) commingle the proceeds of all loans paid to it pursuant to
the escrow agreement entered into under such paragraph (1);
"(C) invest the proceeds of such loans in obligations of the
Federal Government or obligations which are insured or guaranteed
by the Federal Government;
"(D) retain interest or other earnings on such investment; and
"(E) return to the eligible lender undisbursed funds when the
student ceases to carry at an eligible institution at least
one-half of the normal full-time academic workload as determined
by the institution.".
Sec. 418. Title IV of the Act is amended by adding after section 433
the following new section:
" Sec. 433 A. // 20 USC 1083a. // Each eligible lender shall enter
into an agreement with the Secretary under which the eligible lender
will, at the time such lender makes a loan to a student borrower which
is insured or guaranteed under this part, provide thorough and accurate
loan information on loans insured or guaranteed under this part to the
student borrower. The loan information required by this section shall
include--,
"(1) the yearly and cumulative maximum amounts that may be
borrowed by a student;
"(2) the terms on which repayment will begin;
"(3) the maximum number of years in which the loan must be
repaid;
"(4) the interest rate that will be repaid, and the minimum
amount of required monthly payment;
"(5) any special options the borrower may have for deferral,
cancellation, prepayment, consolidation, or other refinancing of
the loan;
"(6) a definition of default and the consequences to the
borrower if the borrower should default, including a description
of any arrangements made with credit bureau organizations; and
"(7) to the extent practicable, the effect of accepting the
loan on the eligibility of the borrower for other forms of student
assistance.".
Sec. 419. Part B of title IV of the Act is amended by inserting
immediately after section 428 A the following new section:
STUDENTS
" Sec. 428 B. // 20 USC 1078-2. // (a) Parents of a dependent
undergraduate student (as defined by regulations by the Secretary) shall
be eligible to borrow funds under this part in amounts specified in
subsection (b), and unless otherwise specified in subsections (c) and
(d), such loans shall have the same terms, conditions, and benefits as
all other loans made under this part. Whenever necessary to carry out
the provisions of this section the terms 'student' and 'student
borrower' used in this part shall include a parent borrower under this
section.
"(b)(1) Subject to paragraphs (2) and (3), the maximum amount parents
may borrow for one student in any academic year or its equivalent (as
defined by regulation by the Secretary) is $3,000.
"(2) The aggregate insured principal amount for insured loans made to
parents on account of an undergraduate dependent student shall not
exceed $15,000.
"(3) No loan may be made to any parent or student under this part
which would cause their combined loans for any academic year to exceed
the student's estimated cost of attendance minus such student's
estimated financial assistance as certified by the eligible institution
under section 428(a)(2)(A) of this part. // 20 USC 1078. // The annual
insurable limit on account of any student 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.
"(c)(1) Repayment of principal on loans made under this section shall
commence not later than sixty days after the date such loan is disbursed
by a lender.
"(2) No payments to reduce interest costs shall be paid pursuant to
section 428(a) of this part on loans made pursuant to this section.
"(3) Interest on loans made pursuant to this section shall be at the
rate of 9 per centum per annum on the unpaid principal balance of the
loan, except that, if the loan is to cover the cost of education for a
period of enrollment which begins on or after a date which is three
months after the date on which the Secretary has made a determination
under section 427 A(b) and that borrower, on the date of entering into
the note or other written evidence of the loan, has no obligation to
repay any amount of principal or interest on any other loan made under
this section with respect to the same student, then the interest shall
be at therate of 8 per centum per annum on the unpaid principal balance
of the loan.
"(d) Loans made under this section shall be insured by the Secretary
in a State only if--,
"(1) the State is not served by a State agency or nonprofit private
institution or organization having an agreement with the Secretary
pursuant to section 428(b), or
"(2) an agency, institution, or organization in a State having such
an agreement does not authorize loans under this section (A) within one
hundred and twenty days after the effective date of this amendment, or
(B) if a State is prohibited from authorizing loans under this section
because of existing State law, one hundred and twenty days after the
adjournment of the next regular session of the State legislature which
convenes after the effective date of this amendment.".
Sec. 420. (a) Section 438 of the Act is amended to read as follows:
" Sec. 438. // 20 USC 1087-1. // (a) In order to assure (1) that the
limitation on interest payments or other conditions (or both) on loans
made or insured under this part, do not impede or threaten to impede the
carrying out of the purposes of this part or do not cause the return to
holders of loans to be less than equitable, (2) that incentive payments
on such loans are paid promptly to eligible lenders, and (3) that
appropriate consideration of relative administrative costs and money
market conditions is made in setting the quartly rate of such payments,
the Congress finds it necessary to establish an improved method for the
determination of the quarterly rate of the special allowances on such
loans, and to provide for a thorough, expeditious and objective
examination of alternative methods for the determination of the
quarterly rate of such allowances.
"(b)(1) A special allowance shall be paid for each of the three-month
periods ending March 31, June 30, September 30, and December 31 of every
year and the amount of such allowance paid to any holder with respect to
any three-month period shall be a percentage of the average unpaid
balance of principal (not including unearned interest added to
principal) of all eligible loans held by such holder during such period.
"(2)(A) Subject to subparagraph (D) and paragraph (4), the special
allowance paid pursuant to this subjection on which the applicable
interest rate is 7 per centum per annum or less shall be computed (i) by
determining the average of the bond equivalent rates of the
ninety-one-day Treasury bills auctioned for such three-month period,
(ii) by subtracting 3.5 per centum from such average, (iii) by rounding
the resultant per centum upward to the nearest one-eighth of 1 per
centum, and (iv) by dividing the resultant per centum by four.
"(B) Subject to subparagraph (D) and paragraph (4), the special
allowance paid pursuant to this subsection onloans for which the
applicable interest rate is 8 per centum per annum shall be computed (i)
by determining the average of the bond equivalent rates of the
ninety-one-day Treasury bills auctioned for such three-month period,
(ii) by subtracting 4.5 per centum from such average, (iii) by rounding
the resultant per centum upward to the nearest one-eighth of 1 per
centum, and (iv) by dividing the resultant per centum by four.
"(C) Subject to subparagraph (D) and paragraph (4), the special
allowance paid pursuant to this subsection on loans for which the
applicable interest rate is 9 per centum per annum shall be computed (i)
by determining the average of the bond equivalent rates of the
ninety-one-day Treasury bills auctioned for such three-month period,
(ii) by subtracting 5.5 per centum from such average, (iii) by rounding
the resultant per centum upward to the nearest one-eighth of 1 per
centum, and (iv) be dividing the resultant per cventum by four.
"(D)(i) The quarterly rate of the special allowance for holders of
loans which were made or purchased with funds obtained by the holder
from the isuance of obligations, the income from which is exempt from
taxation under the Internal Revenue Code of 1954 // 26 USC 1. // shall
be one-half the quartly rate of the special allowance established under
subparagraph (A), (B), or (C). Such rate shall also apply to holders of
loans which were made or purchased with funds obtained by the holder
from collections or default reimbursements on, or interests or other
imcome pertaining to, eligible loans made or purchased with funds
described in the preceding sentence of this subparagraph or from income
on the investment of such funds. This subparagraph shall not apply to
loans which were made or insured prior to October 1, 1980.
"(ii) The rate set under division (i) shall not be less than (I) 2.5
per centum per annum in the case of loans for which the appicble
interest rate is 7 per centum per annum, (II) 1.5 per centum per annum
in the case of loans for which the applicable interest rate is 8 per
centum per annum, or (III) 0.5 per centum in the case of loans for which
the applicable rate is 9 per centum per annum.
"(iii) No special allowance may be paid under this subparagraph
unless the issuer of such obligations complies with section 420(b) of
the Education Amendments of 1980.
"(3) The holder of an eligible loan shall be deemed to have a
contractual right against the United States, during the life of such
loan, to receive the special allowance according to the provisions of
this section. Subject to paragraph (4) the special allowance determined
for any such three-month period shall be paybale at such time, after the
close of such period, as may be specified by or pursuant to regulations
promulgated under this section.
"(4)(A) If payments of the special allowances payable under this
section // 20 USC 1078. // or of interest payments under section 428(
a) with respect to a loan have not been made within thirty days after
the Secretary has received an accurate, timely, and complete request for
payment thereof, the special allowance payable to such holder shall be
increased by an amount equal to the daily interest accruing on the
special allowance and interest benefits payments due the holder.
"(B) Such daily interest shall be computed at the daily equivalent
rate of the sum of the special allowance rate computed pursuant to
paragraph (2) and the interest rate applicable to the loan and shall be
paid for the later of (i) the thirty-first day after the receipt of such
request for payment from the holder, on (ii) the thirty-first day after
the final day of the period or periods covered by such request, and
shall be paid for each succeeding day until, and including, the date on
which the Secretary authorizes payments.
"(C) For purposes of reporting to the Congress the amounts of special
allowances paid under this section, amounts of special allowances paid
pursuant to this paragraph shall be segregated and reported separately.
"(5) As used in this section, the term 'eligible loan' means a loan
which is insured under this part, or made under a program covered by an
agreement under section 428(b) of this Act.
"(6) The Secretary shall pay the holder of an eligible loan, at such
time or times as are specified in regulations, a special allowance
prescribed pursuant to this subsection subject to the condition that
such holder shall submit to the Secretary, at such time or times and in
such a manner as he may deem proper, such information as may be required
by regulation for the purpose of enabling the Secretary to carry out his
functions under this section and to carry out the purposes of this
section.
"(c) The Secretary shall adopt or amend appropriate regulations
pertaining to programs carried on under this part to prevent, where
practicable, any practices which he finds have denied loans to a
substantial number of eligible students.".
(b) In order for the holders of loans which were made or purchased
with funds obtained by the holder from an Authority issuing obligations,
the income from which is exempt from taxation under the Internal Revenue
Code of 1954, // 26 USC 1. // to be eligible to receive a special
allowance under section 438(b)(2)(D) of the Higher Education Act of
1965, the Authority shall submit to the Secretary a plan for doing
business. The Secretary shall approve or disapprove such plan within 30
days after the date of its submission. Each such plan shall contain
provisions designed to assure that--,
(1) no eligible lender in the area served by the Authority will
be excluded from participation in the program of the Authority and
that all eligible lenders may participate in the program on the
same terms and conditions if eligible lenders are going to
participate in the program;
(2) no director or staff member of the Authority who receives
compensation from 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 premium or discount amounting to more than 1 per
centum of the unpaid principal amount borrowed plus accrued
interest to the date of acquisition, but a reasonable loan
transfer fee may be paid by the purchaser;
(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 who are
residents of, or who attend an eligible institution within, the
area served by the Authority;
(5) the Authority has a plan under which the Authority will
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 which will include review of
compliance by the Authority with the provisions of the plan.
Sec. 421. (a)(1) Section 439(a)(1) of the Act // 20 USC 1087-2. //
is amended by striking out " Government-sponsored".
(2) Section 439(f) of the Act is amended to read as follows:
"(f)(1) The Association shall have common stock having such par value
as may be fixed by its Board of Directors from time to time which may be
issued only to lenders under this part, pertaining to guaranteed student
loans, who are qualified as insured lenders under this part or who are
eligible institutions, as defined in section 435(a), // 20 USC 1085. //
other than an institution outside of the United States.
"(2) Each share of common stock shall be entitled to one vote with
rights of cumulative voting at all elections of Directors. Voting shall
be by classes as described in subsection (c)(3).
"(3) The maximum number of shares of common stock that the
Association may issue and have outstanding at any one time shall be
fixed by the Board of Directors from time to time. Any common share
issued shall be fully transferable, except that, as to the Association,
it shall be transferred only on the books of the Association.
"(4) To the extent that net income is earned and realized, subject to
subsection (g)(2), dividends may be declared on common stock and
nonvoting common stock by the Board of Directors. Such dividends as may
be declared by the Board shall be paid to the holders of outstanding
shares of common stock and nonvoting 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.
"(5) The Association is authorized to issue nonvoting common stock
having such par value as may be fixed by its Board of Directors from
time to time. Any nonvoting common stock shall be freely transferable,
except that, as to the Association, it shall be transferable only on the
books of the Association.".
(3) The first sentence of section 439(g)(1) of the Act // 20 USC
1087-2. // is amended to read as follows: " The Association is
authorized to issue nonvoting preferred stock having such par value as
may be fixed by its Board of Directors from time to time.".
(b)(1) Section 439(d) of the Act is amended--,
(A) in paragraph (1), by inserting "or repurchase," after
"purchase" and by inserting "or resell, offer participations, or
pooled interests," after "sell";
(B) by amending paragraph (2) to read as follows:
"(2) Any warehousing advance made under paragraph (1) of this
subsection shall be made on the security of (A) insured loans, (B)
marketabel obligations and securities issued, guaranteed or insured by,
the United States, or for which the full faith and credit of the United
States is pledged for the repayment of principal and interest thereof,
or (C) marketable obligations issued, guaranteed, or insured by any
agency, instrumentality or corporation of the United States for which
the credit of such agency, instrumentality or corporation is pledged for
the repayment of principal and interest thereof, in an amount equal to
the amount of such advance. The proceeds of any such advance secured by
insured loans shall either be invested in additional insured loans or
the lender shall provide assurances to the Association that during the
period of the borrowing it will maintain a level of insured loans in its
portfolio not less than the aggregate outstanding balance of such loans
held at the time of the borrowing. The proceeds from any such advance
secured by collateral described in clauses (B) and (C) shall be invested
in additional insured student loans."; and
(C) by adding at the end thereof the following new paragraph:
"(4) Securities issued pursuant to the offering of participations or
pooled interests under paragraph (1) of this subsection may be in the
form of debt obligations, or trust certificates of beneficial ownership,
or both. Student loans set aside pursuant to the offering of
participations or pooled interests shall at all times be adequate to
ensure the timely principal and interest payments on such securities.".
(2) Section 439(1) of the Act is amended by inserting "including
those made under subsection (d)(4)" immediately after " All obligations
issued by the Association".
(c) Section 439(e)(A) of the Act // 20 USC 1087 - 2. // is amended
by striking out "$50,000,000" and inserting in lieu thereof
"$75,000,000".
(d)(1) Section 439(h)(1) of the Act is amended to read as follows:
"(h)(1) The Association is authorized with the approval of the
Secretary of Education and the Secretary of the Treasury to issue and
have outstanding obligations having such maturities and bearing such
rate or rates of interest as may be determined by the Association. The
authority of the Secretary of Education to approve the issuance of such
obligations is limited to obligations issued by the Association and
guranteed by the Secretary pursuant to paragraph (2) of this subsection.
Such obligations may be redeemable at the option of the Association
before maturity in such a manner as may be stipulated therein. The
Secretary of the Treasury may not direct as a condition of his approval
that any such issuance of obligations by the Association be made or sold
to the Federal Financing Bank.".
(2) Section 439(h)(2) of the Act is amended--,
(A) by striking out " July 1, 1982" and inserting in lieu
thereof " October 1, 1984"; and
(B) by adding at the end thereof the following new sentence: "
Nothing in this section shall be construed so as to authorize the
Secretary of Education or the Secretary of the Treasury to limit,
control, or constrain programs of the Association or support of
the Guaranteed Student Loan Program by the Association.".
(3) Section 439(h) of the Act is amended by adding at the end thereof
the following new paragraphs:
"(4) Upon receipt of a request from the Association under this
subsection requiring approvals by the Secretary of Education or the
Secretary of the Treasury, the Secretary of Education or the Secretary
of the Treasury shall act promptly either to grant approval or to advise
the Association of the reasons for withholding approval. In no case
shall such an approval be withheld for a period longer than sixty days
unless, prior to the end of such period, the Secreatary of Education and
the Secretary of the Treasury submit to the Congress a detailed
explanation of reasons for doing so.
"(5) The Secretary of the Treasury is authorized to purchase any
obligations issued by the Association pursuant to this subsection as now
or hereafter in force, and for such purpose the Secretary of the
Treasury is authorized to use as a public debt transaction the proceeds
of the sale of any securities hereafter issued under the Second Liberty
Bond Act, // 31 USC 774. // as now or hereafter in force, and the
purposes for which securities may be issued under the Second Liberty
Bond Act, as now or hereafter in force are extended to include such
purchases. The Secretary of the Treasury shall not at any time purchase
any obligations under this subsection if such purchase would increase
the aggregate principal amount of his then outstanding holdings of such
obligations under this subsection to an amount greater than
$1,000,000,000. Each purchase of obligations by the Secretary of the
Treasury under this subsection shall be upon such terms and conditions
as to yield a return at a rate determined by the Secretary of the
Treasury, taking into considerartion the current average rate on
outstanding marketable obligations of the United States of comparable
maturities as of the last day of the month preceding the making of such
purchase. The Secretary of the Treasury may, at any time, sell, upon
such terms and conditions and at such price or prices as he shall
determine, any of the obligations acquired by him under this subsection.
All redemptions, purchases, and sales by the Secretary of the Treasury
of such obligations under this subsection shall be treated as public
transactions of the United States.
"(6) Notwithstanding any other provision of law the Association is
authorized to sell or issue obligations on the security of student
loans, the payment of interest or principal of which has at any time
been guaranteed under section 428 or 429 of this part, // 20 USC
1078,1079. // to the Federal Financing Bank.".
(e)(1) Section 439 of the Act // 20 USC 1087 - 2. // is amended by
adding at the end thereof the following new subsections:
"(o)(1)(A) The Association or its designated agent may, upon request
of a borrower who has received loans under this title from two or more
programs or lenders, or has received any other federally insured or
guranteed student loan, and where the borrower's aggregate outstanding
indebtedness is in excess of $5,000, or where the borrower's aggregate
outstanding indebteness is in excess of $7,500 from a single lender
under this part, make, notwithstanding any other provision of this part
limiting the maximum insured principal amount for all insured loans made
to a borrower, a new loan to the borrower in an amount equal to the
unpaid principal and accrued unpaid interest on the old loans. The
proceeds of the new loan shall be used to discharge the liability on
such old loans.
"(B) The Association in making loans pursuant to this subsection in
any State served by a State agency or nonprofit private institution or
organization with which the Secretary has an agreement under section
428(b) or an eligible lender in a State described in section 435(g)(1)
(D) or (F) // 20 USC 1085. // may designate as its agent such agency,
institution, organization, or lender to perform such functions as the
Association determines appropriate. Any agreements made pursuant to
this subparagraph shall be on such terms and conditions as agreed upon
by the Association and such agency, institution, organization, or
lender.
"(2) Loans made pursuant to this subsection shall be insurable either
by the Secretary under section 429 // 20 USC 1079. // with a
certificate of comprehensive insurance coverage provided for under
section 429(b)(1) or by a State or nonprofit private institution or
organization with which the Secretary has an agreement under section
428(b), except that such State or nonprofit private institution or
organization shall provide the Association with a certificate of
comprehensive insurance coverage. The terms of loans made under this
subsection shall be such as may be agreed upon by the borrower and the
Association and meet the requirements of section 427, // 20 USC 1077.
// except that (A) the ten-year maximum period referred to insection
427(a)(2)(B) may be extended to no more than twenty years, and (B)
clause (ii) of section 427(a)(2)(B) shall not be applicable.
"(3)(A) Notwithstanding any other provision of this part, the
Association, with the agreement of the borrower, may establish such
repayment terms as it determines will promote the objectives of this
subsection including, but not limited to, the establishment of
graduated, income sensitive repayment schedules.
"(B) For any borrower who has received two or more loans under this
part bearing interest at the rate of 9 per centum per annum on the
unpaid principal balance of the loan and who requests a new loan under
this subsection for the purpose of consolidation on a date after the
date on which the Secretary has made a determination under section 427
A(b), the rate of interest on such new loan shall not exceed 8 per
centum per annum on the unpaid principal balance of such new loan.
"(4) The Association shall develop a program to ensure the
dissemination of information to students, lenders, and institutions of
higher education regarding the loans authorized by this subsection.
"(p)(1) The Association shall make advances in each fiscal year from
amounts available to it to each State agency, nonprofit institution or
organization, and eligible lender described in subsection 428(h)(1)
which has an agreement with the Association which sets forth that
advances are necessary to enable such agency, institution, organization
or lender to make student loans in accordance with section 428(h) of
this title and that such advances will be repaid to the Association in
accordance with such terms and conditions as may be set forth in the
agreement and agreed to by the Association and such agency, institution,
organization, or lender. Advances made under this subsection shall not
be subject to section 439(d)(2) of this Act.
"(2) No advance may be made under this subsection unless the State
agency or nonprofit private institution, organization, or lender makes
an application to the Association, which shall be accompanied by such
information as the Association determines to be reasonably necessary.
"(q)(1)(A) Whenever the Secretary determines that eligible borrowers
in a State not served by a State agency or nonprofit private institution
or organization having an agreement pursuant to section 428(b), // 20
USC 1085. // or an eligible lender in a State described in section
435(g)(1) (D) or (F) are seeking and are unable to obtain loans under
this part, the Association or its designated agent may begin making
loans in accordance with this subsection at the request of the
Secretary. The Association shall give preference to such States in
making loans under this subsection.
"(B) Loans made pursuant to this subsection shall be insurable by the
Secretary under section 429 // 20 USC 1079. // with a certificate of
comprehensive insurance coverage provided for under section 429(b)( 1).
"(2)(A) Whenever the Secretary, after consultation with, and with the
agreement of, representatives of the agency in a State or nonprofit
private institution or organization having an agreement pursuant to
section 428(b), or an eligible lender in a State described in section
435(g)(1)(D), determines that a substantial portion of eligible
borrowers in such State or within an area of such State are seeking and
are unable to obtain loans under this part, the Association or its
designated agent may begin making loans in accordance with this
subsection at the request of the Secretary.
"(B) Loans made pursuant to this subsection shall be insurable by the
agency identified in subparagraph (A) having an agreement pursuant to
section 428(b). For loans insured by such agency, the agency shall
provide the Association with a certificate of comprehensive insurance
coverage, if the Association and the agency have mutually agreed upon a
means to determine that the agency has not already guaranteed a loan
under this part to a student which would cause a subsequent loan made by
the Association to be in violation of any provision under this part.
"(3) The Association or its designated agent shall cease making loans
under this part in any State at such time as it is determined by the
Secretary, with regard to loans made under paragraph (1), or by any
party to the agreement required by paragraph (2), that--,
"(A) the conditions which caused the implementation of this
subsection have ceased to exist; or
"(B) the implementation of this subsection has either (i)
further reduced the availability of loans from other sources in
the applicable geographical area, or (ii) inhibited the formation
in a State of an agency which would have an agreement pursuant to
section 428(b) of this part
// 20 USC 1078. //
which would have the responsibility of developing local sources of
funds for student loans.".
(2) Section 435(g)(1) of the Act // 20 USC 1085. // is amended by
striking out "and" at the end of subparagraph (E), by striking out the
period at the end of subparagrph (F), and by adding at the end thereof
the following:
"(G) for purposes of making loans under section 439 (o) and
(q), the Student Loan Marketing Association; and
"(H) for purposes of making loans under section 428(j), a State
agency or a nonprofit private institution or organization having
an agreement under section 428(b).".
Sec. 422. Section 430(a) of the Act // 20 USC 1080. // is amended
by adding at the end thereof the following new sentence: " The
Secretary shall make the determination required to carry out the
provisions of this section not later than ninety days after the
notification by the insurance beneficiary and shall make payment in full
on the amount of the beneficiary's loss pending completion of his due
diligence investigation.".
Sec. 423. (a)(1) Section 427(a)(1) of the Act // 20 USC 1077. // is
amended to read as follows:
"(1) made to a student who (A) is an eligible student under
section 484, and (B) has agreed to notify promptly the holder of
the loan concerning any change of address; and".
(2) Section 428(a)(2)(B)(i) of the Act // 20 USC 1078. // is amended
to read as follows:
"(i) a student's estimated cost of attendance means the cost of
attendance for such student determined in accordance with section
482(d);".
(b) The first sentence of section 428(c)(1)(A) of the Act is amended
by striking out everything after "of any insured loan" and inserting in
lieu thereof a period.
(c) Section 428(e) of the Act is amended to read as follows:
"(e) From funds appropriated to carry out this part in any fiscal
year the Secretary shall pay to each eligible institution the amount of
$10 per academic year for each student enrolled in that institution who
is in receipt of a loan described in paragraph (1) of subsection (a) of
this section or made under section 428 B, for that year. Payments
received by an institution under this subsection shall be used solely
for the purpose of offsetting the costs to the institution for the
program under this part.".
(d) Section 428(f) of the Act is amended by adding at the end thereof
the following new paragraph:
"(5)(A) The Secretary shall make payments in accordance with this
paragraph to an agency, institution, or organization in any State which
has an agreement under subsection (b) of this section which provides a
lender referral service for students who meet the requirements of
subparagraph (B).
"(B) A student is eligible to apply for lender referral services to
an agency, institution, or organization in a State if (i) such student
is either a resident of such State or is accepted for enrollment in or
is attending an eligible institution in such State, and (ii) such
student has sought and was unable to find a lender willing to make a
loan under this part.
"(C) The amount which the Secretary shall pay to any eligible agency,
institution, or organization under this paragraph shall be equal to
one-half of 1 per centum of the total principal amount of the loans upon
which insurance was issued under this part on loans made to a student
described in subparagraph (B) who subsequently obtained such loans
because of such agency's, institution's, or organization's referral
service.
"(D) Nothing in this or any law shall prohibit an agency from using
all or a portion of the funds received under this part for the payment
of incentive fees to lenders who agree to participate in a loan referral
service.
"(E) There is authorized to be appropriated such sums as are
necessary to carry out the provisions of this paragraph.".
Sec. 431. Section 441 of the Act is amended to read as follows:
" Sec. 441. // 42 USC 2751. // (a) The purpose of this part is to
stimulate and promote the part-time employment of students, particularly
students who are in need of earnings from employment to pursue courses
of study at eligible institutions.
"(b) There are authorized to be appropriated for carrying out this
part $670,000,000 for fiscal year 1981, $720,000,000 for fiscal year
1982, $760,000,000 for fiscal year 1983, $800,000,000 for fiscal year
1984, and $830,000,000 for fiscal year 1985.".
Sec. 432. Section 442 of the Act // 42 USC 2752. // is amended--,
(1) by striking out "2 per centum" in subsection (a)(1) and
inserting in lieu thereof "1 per centum";
(2) by striking out " Puerto Rico," in subsection (a)(1);
(3) by striking out "subsection (e)" in subsection (a)(2) and
inserting in lieu thereof "subsection (f)",
(4) by inserting "second" immediately after "until the close of
the" in subsection (d); and
(5) by striking out " Puerto Rico," in subsection (e).
FUNDS FOR THE
SUPPORT OF COOPERATIVE EDUCATION PROGRAMS
Sec. 433. (a) The first sentence of section 442(d) of the Act is
amended by inserting before the period a comma and the following:
"except that the Secretary shall give preference for the first 50 per
centum of such reallotments to eligible institutions for use for
initiating, improving, and expanding programs of cooperative education
conducted in accordance with title VIII of this Act". // 20 USC 1133.
//
(b) Section 442(d) of the Act is amended by inserting "(1)" after the
subsection designation and by adding at the end thereof the following
new paragraph:
"(2) The requirement for preference under reallotment contained in
the exception of the first sentence of paragraph (1) of this subsection
shall be made upon application by the eligible institution to the
Secretary in such manner and such form as the Secretary may require.
The Secretary shall allot funds under such preference based upon the
ratio of the number of students assisted under the cooperative education
program authorized by title VIII // 20 USC 1133. // for the fiscal year
for which the determination is made enrolled in the eligible institution
making application under this paragraph to the number of such students
for such year enrolled in all eligible institutions applying under this
part.".
Sec. 434. Part C of title IV of the Act // 42 USC 2753, 2754. // is
amended by striking out sections 443 and 444 and inserting in lieu
thereof the following:
" Sec. 443. // 42 USC 2753. // (a) The Secretary is authorized to
enter into agreements with institutions of higher education under which
the Secretary will make grants to such institutions to assist in the
operation of work-study programs as provided in this part.
"(b) An agreement entered into pursuant to this section shall--,
"(1) provide for the operation by the institution of a program
for the part-time employment of its students in work for the
institution itself (except in the case of a proprietary
institution of higher education) or work in the public interest
for a Federal, State, or local public agency or private nonprofit
organization under an arrangement between the institution and such
agency or organization, and such work--,
factors as
type of work performed, geographical region, and
proficiency
of the employee;
maintenance
of so much of any facility as is used or is to be used
for sectarian instruction or as a place for religious
worship;
and
minimum
wage as mandated by section 6(a) of the Fair Labor
Standards
Act of 1938;
// 20 USC 206. //
"(2) provide that funds granted an institution of higher
education, pursuant to section 443, may be used only to make
payments to students participating in work-study programs, except
that an institution may use a portion of the sums granted to it to
meet administrative expenses in accordance with section 489 of the
Act, may use a portion of the sums granted to it to meet the cost
of a job location and development program in accordance with
section 447 of this part,
// 42 USC 2756a. //
and may transfer funds in accordance with the provisions of
section 488 of this Act;
"(3) provide that in the selection of students for employment
under such work-study program, only students who demonstrate
financial need in accordance with the provisions of section 482,
and who meet the requirements of section 484 will be assisted,
except that each eligible institution may reserve and award not
more than 10 per centum of the funds made available under this
part for each fiscal year for less-than-half-time students who are
determined by the institution to be in need of such grants and who
meet the requirements of section 484, other than the requirement
of clause (2) of section 484(a);
"(4) provide that no student in a work-study program under this
part shall be required to terminate that employment during a
semester (or other regular enrollment period) at the time income
derived from any employment (including work-study or nonwork-study
or both) is in excess of the determination of the amount of such
student's need for that semester under clause (3) of this
subsection, but when such excess income equals $200 or more,
continued employment under a work-study program shall not be
subsidized with funds appropriated under this part;
"(5) provide that the institution will meet the requirements of
section 487(2) of this Act (relating to maintenance of effort):
"(6) provide that the Federal share of the compensation of
students employed in the work-study program in accordance with the
agreement will not exceed 80 per centum of such compensation;
except that the Federal share may exceed 80 per centum of such
compensation if the Secretary determines, pursuant to regulations
adopted and promulgated by him establishing objective criteria for
such determinations, that a Federal share in excess of 80 per
centum is required in furtherance of the purposes of this part;
"(7) include provisions to make employment under such
work-study program reasonably available (to the extent of
available funds) to all eligible students in the institution in
need thereof, and to make equivalent employment offered or
arranged by the institution reasonably available (to the extent of
available funds) to all students in the institution who desire
such employment;
"(8) provide assurances that employment made available from
funds under this part will, to the maximum extent practicable,
complement and reinforce the educational program or vocational
goals of each student receiving assistance under this part; and
"(9) include such other provisions as the Secretary shall deem
necessary or appropriate to carry out the purposes of this part.".
Sec. 435. (a) Section 446(a) of the Act // 42 USC 2756. // is
amended by inserting at the end thereof the following new sentence: "
The criteria established under this subsection shall not result in any
institution's receiving an amount less than the institution used under
this section for fiscal year 1979, unless there is a substantial decline
in the student enrollment of the institution.".
(b) Section 446 of the Act is amended by striking out subsection (b)
and inserting in lieu thereof the following new subsections:
"(b) Of the sums granted to an eligible institution under this part
for any fiscal year, 10 per centum may, at the discretion of the
institution, remain available for expenditure during the succeeding
fiscal year to carry out programs under this part. Any of the sums so
granted to an institution for a fiscal year which are not needed by that
institution to operate work-study programs during that fiscal year, and
which it does not wish to use during the next fiscal year as authorized
in the preceding sentence, shall remain available to the Secretary for
making grants under section 443 to other institutions in the same State
until the close of the second fiscal year next succeeding the fiscal
year for which such funds were appropriated.
"(c) Up to 10 per centum of the sums the Secretary determines an
eligible institution may receive from funds which have been appropriated
for a fiscal year may be used by the Secretary to make grants under this
part to such institution for expenditure during the fiscal year
preceding the fiscal year for which the sums were appropriated.".
Sec. 436. Section 447 of the Act // 42 USC 2756a. // is amended by
striking out "$15,000" and inserting in lieu thereof "$25,000".
Sec. 437. Part C of title IV of the Act is amended by adding at the
end thereof the following new section:
BEHALF OF LOWINCOME
INDIVIDUALS AND FAMILIES
" Sec. 448. (a) The purpose of this section // 42 USC 2756b. // is
to encourage and enable institutions of higher education to develop work
study programs involving eligible students in community service-learning
designed to develop, improve, or expand services for low-income
individuals and families or to solve particular problems related to the
needs of low--, income individuals.
"(b) For the purpose of this section--,
"(1) 'community service-learning' means a program of student
work that--,
behalf
of low-income individuals or families; and
vocational programs
or goals; and
"(2) 'community services' means direct service, planning or
applied research activities designed to improve the quality of
life for community residents, particularly low-income individuals,
or to solve particular problems related to their needs including,
but not limited to, such fields as health care, education,
welfare, social services, public safety, crime prevention and
control, transportation, recreation, housing and neighborhood
improvement, rural development, and community improvement.
"(c) Each institution participating under this part may use funds
made available under the last sentence of section 489(a) to conduct that
institution's program of community service-learning, including--,
"(1) development of mechanisms to assure the academic quality
of the student experience,
"(2) assuring student access to educational resources,
expertise, and supervision necessary to achieve community service
objectives, and
"(3) collaboration with public and private nonprofit agencies
in the planning and administration of such programs.".
Sec. 441. (a) Section 461(b)(1) of the Act // 20 USC 1087aa. // is
amended to read as follows:
"(b)(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 $400,000,000 for each of the fiscal
years 1981 and 1982, $475,000,000 for fiscal year 1983, $550,000,000 for
fiscal year 1984, and $625,000,000 for fiscal year 1985, except that no
funds are authorized to be appropriated for any fiscal year which begins
after there has been a capital distribution under section 466(a).". //
20 USC 1087ff. //
(b) Section 461(b)(2) of the Act // USC 1087aa. // is amended--,
(1) by striking out "for the fiscal year ending September 30,
1980, and each of the three succeeding fiscal years" and inserting
in lieu thereof "for fiscal year 1985 and each of the five
succeeding fiscal years"; and
(2) by striking out " October 1, 1980" and inserting in lieu
thereof " October 1, 1985".
CURRENT
BALANCES
Sec. 442. (a) Part E of title IV of the Act is amended by adding at
the end thereof the following new sections:
" Sec. 468.
// 20 USC 1087hh. // (a)(1) The Secretary shall, not later than April 1
of each fiscal year, issue and have outstanding at any one time notes,
debentures, bonds, or other obligations in such amounts as shall be
necessary to carry out functions under this part, subject to such annual
limitations as may be provided in an appropriation Act with respect to
such fiscal year, except that the Secretary shall not issue any such
obligation without the prior concurrence of the Secretary of the
Treasury as to the terms and conditions of such obligations. The
Secretary of the Treasury may direct that any such issuance by the
Secretary be sold to the Department of the Treasury for its own account
or to the Federal Financing Bank.
"(2) The Secretary of the Treasury is authorized and directed to
purchase any obligations issued under this section, and for that
purpose, the Secretary of the Treasury is authorized to use as a public
debt transaction the proceeds from the sale of any securities hereafter
issued under the Second Liberty Bond Act, and the purposes for which
securities may be issued under the Second Liberty Bond Act are extended
to include such purchases. Each purchase of obligations by the
Secretary of the Treasury under this section shall be upon such terms
and conditions as to yield a return at a rate not less than a rate
determined by the Secretary of the Treasury, taking into consideration
the current average yield on outstanding marketable obligations of the
United States of comparable maturity. Interest due on obligations of
the Secretary held by the Treasury may be deferred, at the discretion of
the Secretary, but any such deferred interest shall bear interest at the
rate specified in this section. The Secretary of the Treasury may sell,
upon such terms and conditions and at such price or prices as he shall
determine, any of the obligations acquired by him under this section.
All redemptions, purchases, and sales by the Secretary of the Treasury
of such obligations under this section shall be treated as public debt
transactions of the United States.
"(3) All obligations of the Secretary issued under this section shall
be fully and unconditionally guaranteed as to principal and interest and
shall constitute general obligations of the United States, backed by the
full faith and credit of the Government of the United States of America.
Such guarantee shall be expressed on the face of all such obligations.
"(4) Obligations of the Secretary issued pursuant to this section
shall be lawful investments, and may be accepted as security for all
fiduciary, trust, and public funds the investment or deposit of which
shall be under the authority or control of the United States or any
officer or officers thereof. All stock and obligations issued by the
Secretary pursuant to this section shall be deemed to be exempt
securities within the meaning of laws administered by the Securities and
Exchange Commission, to the same extent as securities which are direct
obligations of, or obligations guaranteed as to principal or interest
by, the United States.
"(5) In order that the Secretary may be supplied with such forms of
notes, debentures, bonds, or other such obligations as it may need for
issuance under this section, the Secretary of the Treasury is authorized
to prepare such forms as shall be suitable and approved by the
Secretary, to be held in the Treasury subject to delivery, upon order of
the Secretary. The engraved plates, dies, bed pieces, and so forth,
executed in connection therewith shall remain in the custody of the
Secretary of the Treasury. The Secretary shall reimburse the Secretary
of the Treasury for any expenses incurred in the preparation, custody,
and delivery of such notes, debentures, bonds, or other obligations.
"(6) All moneys of the Secretary not otherwise employed may be--,
"(A) deposited with the Treasury of the United States subject
to withdrawal by the Secretary, by check drawn on the Treasury of
the United States by a Treasury disbursing officer, or
(B) with the approval of the Secretary of the Treasury,
deposited in any Federal Reserve bank, or
"(C) with the approval of the Secretary of the Treasury, and by
authorization of the Secretary, used in the purchase for
redemption and retirement of any notes, debentures, bonds, or
other obligations issued by the Secretary.
"(b)(1) The Secretary shall make payments under this section for any
fiscal year to each institution of higher education having an agreement
under section 463 // 20 USC 1087cc. // on the basis of the estimated
needs of that institution for making student loans taking intl
consideration--,
"(A) the cost of attendance at that institution,
"(B) the financial need of students at that institution to meet
the cost of attendance as determined under section 482, and
"(C) the financial assistance received by students at that
institution under parts A and C of this title,
// 20 USC 1070. //
or any other provision of Federal law (other than part B), and
other scholarship, grant, work, and loan assistance received by
students,
// 20 USC 1087dd. // No application under subsection (c) shall be
approved which requests an amount greater than the amount determined
under this subsection to be needed by that institution.
"(2) If the total amount of Federal capital contributions requested
in applications under subsection (c) exceeds the amount available under
this section for a fiscal year, the request from each institution shall
be ratably reduced, except that no reduction may be made under this
sentence to an amount which, together with funds available to the
institution of higher education under section 463(a)(2) (A) and (B) for
that fiscal year, is less than the amount which was used by that
institution for making loans under this part during fiscal year 1980.
In case additional amounts become available for such contributions in
any fiscal year in which requests have been so reduced, such requests
shall be increased on the same basis as they were reduced, except that
no such request shall be increased above the amount requested in the
application.
"(c) Any institution of higher education desiring to receive payments
of Federal capital contributions from the apportionment under subsection
(b) shall submit an application therefor to the Secretary at such time
as the Secretary prescribes.
"(d) There are authorized to be appropriated such sums as may be
necessary to pay the differential between the rate of return on
obligations of the Secretary made under this section and the interest
collected on student loans made under this part.
"(e) In carrying out the provisions of this part, the Secretary is
authorized--,
"(1) to consent to 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);
// 20 USC 1082. //
and
"(4) to enter into a contract or other arrangment with State or
nonprofit agencies and, on a competitive basis, with collection
agencies for servicing and collection of loans under this part.
" Sec. 469. // 20 USC 1087ii. // If, by April 1 of any fiscal year,
the Secretary has made available for deposit in student loan funds
pursuant to section 463(a)(2)(C) an amount which equals or exceeds
$1,000,000,000 to be available for loans for such fiscal year, there
shall be collected from each student loan fund established under this
part the current balance of such student loan fund as follows:
"(1) The Secretary shall first be paid an amount which bears
the same ratio to the balance in such fund (excluding any portion
of such balance which was deposited pursuant to section 463(a)(
2)(C) as the total amount of Federal capital contributions to such
fund by the Secretary from funds appropriated under section 461
// 20 USC 1087aa. //
or under title II of the National Defense Education Act of 1958
// 20 USC 421. //
bears to the sum of such Federal capital contributions and the
institution's capital contribution to such fund. Such amounts
shall be deposited in the Treasury of the United States.
"(2) The remainder of such balance, excluding any portion of
such balance which was deposited pursuant to section 463(a)(2)(
C), shall be paid to the institution.
"(3) Any portion of such balance which was deposited pursuant
to section 463(a)(2)(C) shall be retained in the student loan fund
for use in accordance with this part.".
(b)(1) Section 463(a)(2) of the Act // 20 USC 1087cc. // is amended
to read as follows:
"(2) provide for the deposit in such fund of--,
appropriated
under section 461;
of the
Federal capital contributions described in
subparagraph (A);
by
the Secretary under section 468;
loans
made from deposited funds other than those described in
subparagraph (C);
section
464(c)(1)(H);
// USC 1087dd. //
and
// 20 USC 1087cc. // is amended by striking out "section 464(c)(1)(G)"
and inserting in lieu thereof "section 464(c)(1)(H)".
(3) Section 463(a) of the Act is further amended by striking out
"and" at the end of paragraph (5), by redesignating paragraph (6) as
paragraph (9), and by inserting immediately after paragraph (5) the
following new paragraph:
"(6)(A) provide that collections of principal and interest on
student loans made from funds described in paragraph (2)(C), after
deduction of any costs of litigation and other servicing and
collection costs agreed to by the Secretary in connection with the
charge assessed pursuant to regulations under section
464(c)(1)(H), shall be paid to the Secretary at such time and in
such manner as the Secretary may prescribe by regulation and shall
be deposited in the Treasury of the United States; or
"(B) provide that, if an institution of higher education
determines not to service and collect student loans made from
funds described in paragraph (2)(C), the institution will assign,
at the beginning of the repayment period, notes or evidence of
obligations of student loans made from funds described in such
paragraph to the Secretary;".
(4) Section 463(b) of the Act is amended by inserting "(1)" after the
subsection designation and by adding at the end thereof the following
new paragraph:
"(2) An institution which has entered into an agreement under
subsection (a) and has elected to assign the notes or evidence of
obligations of student loans in accordance with paragraph (6)(B) of such
subsection shall be eligible to receive, from funds available to the
Secretary, an amount equal to $10 per academic year for each student
enrolled in that institution who in that year received a loan from funds
described in paragraph (2)(C) of subsection (a) of this section.
Payments received by an institution under this paragraph shall be used
for the purposes of offsetting the costs to the institution for the
program under this part.".
(5) Section 464(c)(1)(G) of the Act // 20 USC 1087dd. // is amended
by inserting before the semicolon a comma and the following: "and
except as necessary to carry out section 463(a)(6)(B)".
(6) Section 465(b) of the Act // 20 USC 1087ee. // is amended by
inserting immediately before the period at the end of the first sentence
the following: ", minus an amount equal to the aggregate of the amounts
of any such loans so canceled which were made from Federal capital
contributions to its student loan fund provided by the Secretary under
section 468".
(c) Section 466 of the Act // 20 USC 1087ff. // is amended--,
(1) by striking out " September 30, 1984" each place it appears
in subsection (a) and inserting in lieu thereof " September 30,
1990";
(2) by striking out " March 31, 1985" each place it appears in
subsections (a) and (b) and inserting in lieu thereof " March 31,
1991";
(3) by striking out " September 30, 1978" in subsection (b) and
inserting in lieu thereof " September 30, 1981"; and
(4) by striking out " October 1, 1984" in subsection (c) and
inserting in lieu thereof " October 1, 1990".
Sec. 443. Section 464(a)(2) of this Act // 20 USC 1087dd. // is
amended--,
(1) by striking out "$10,000" in clause (A) and inserting in
lieu thereof "$12,000";
(2) by striking out "$5,000" in clause (B) and inserting in
lieu thereof "$6,000"; and
(3) by striking out "$2,500" in clause (C) and inserting in
lieu thereof "$3,000".
Sec. 444. (a) Section 464(c)(2)(A) of the Act is amended--,
(1) by inserting "or is an officer in the Commissioned Corps of
the Public Health Service" immediately after " Armed Forces of the
United States" in clause (ii);
(2) by striking out "or" at the end of clause (iii), by
striking out the period at the end of clause (iv) and inserting in
lieu thereof a semicolon, and by inserting after clause (iv) the
following new clauses:
"(v) is in service, comparable to the service referred to in
clauses (iii) and (iv), as a full-time volunteer for an
organization which is exempt from taxation under section 501(c)(
3) of the Internal Revenue Code of 1954;
// 26 USC 501. //
"(vi) is serving an internship, the successful completion of
which is required in order to receive professional recognition
required to begin professional practice or service; or
"(vii) is temporarily totally disabled (as defined in section
435(j)), as established by sworn affidavit of a qualified
physician, or during which the borrower is unable to secure
employment by reason of the care required by a spouse who is so
disabled.";
(3) by striking "clause (ii), (iii), or (iv)" in the second
sentence of such section and inserting in lieu thereof "clause
(ii), (iii), (iv), (v), or (vii)"; and
(4) by inserting immediately after such sentence the following
new sentence: " The period during which repayment may be deferred
by reason of clause (vi) shall not exceed two years.".
(b) Section 464(c)(1)(A) of the Act is amended by striking out "nine
months" each place it appears and inserting in lieu thereof "six
months".
(c) Section 464(c)(2) of the Act is amended by adding at the end
thereof the following new subparagraph:
"(C) No repayment of principal of, or interest on, any loan for any
period of study, service, or disability described in subparagraph (A) or
any combination thereof shall begin until six months after the
completion of such period of study, service, disability, or combination
thereof.".
(d) Section 464(c)(3) of the Act is amended by inserting "(A)"
immediately after "(3)" and by adding at the end thereof the following:
"(B) Pursuant to uniform criteria established by the Secretary, the
repayment period for any student borrower who during the repayment
period is a low-income individual may be extended for a period not to
exceed ten years and the repayment schedule may be adjusted to reflect
the income of that individual.".
Sec. 445. (a) Section 463(a) of the Act // 20 USC 1087cc. // (as
amended by section 442(b)(3)) is further amended by inserting after
paragraph (6) the following new paragraph:
"(7) provide that, notwithstanding any other provision of law,
the Secretary will provide to the institution any information with
respect to the names and addresses of borrowers or other relevant
information which is available to him, from whatever sources such
information may be derived;".
(b)(1) Section 463 of the Act is amended by adding at the end thereof
the following new subsection:
"(c)(1) For the purpose of promoting responsible repayment of loans
made pursuant to this part, the Secretary shall enter into cooperative
agreements with credit bureau organizations to provide for the exchange
of information concerning student borrowers concerning whom the
Secretary has received a referral pursuant to section 467. // 20 USC
1087gg. //
"(2) Each cooperative agreement made pursuant to paragraph (1) shall
be made in accordance with requirements of section 430(b)(2) except that
such agreement shall provide for the disclosure by the Secretary to such
organizations, with respect to any loan for which the Secretary is
responsible, of--,
"(A) the date of disbursement and the amount of any such loan;
"(B) information concerning collection of any such loan,
including information concerning the status of any defaulted loan;
and
"(C) the date of cancellation of the note upon completion of
repayment by the borrower of any such loan.".
(2) Section 464(c)(1) of such Act // 20 USC 1087dd. // is amended by
striking out "and" at the end of subparagraph (G), by striking out the
period at the end of subparagraph (H) and inserting in lieu thereof
";and", and by adding at the end thereof the following new subparagraph:
"(I) shall contain a notice of the system of disclosure of
information concerning default on such loan to credit bureau
organizations under section 463(c).".
(c) Section 467 of the Act // 20 USC 1087gg. // is amended by
inserting "(a)" after " Sec. 467." and by adding at the end thereof the
following new subsection:
"(b) The Secretary shall continue to attempt to collect any loan
assigned under section 463(a)(5) or (6) or referred under subsection (a)
of this section until a date which is not earlier than four years after
the date of default (determined in a manner consistent with section
430(e)).". // 20 USC 1080. //
Sec. 446. Section 464(c)(1)(D) of the Act // 20 USC 1087dd. // is
amended by inserting immediately after "3 per centum annum" the
following: "or 4 per centum per annum in the case of any loan made on
or after October 1, 1980".
Sec. 447. (a) Section 463(a) of the Act // 20 USC 1087cc. // (as
amended by section 442(b)(3)) is amended by inserting immediately after
paragraph (7) the following new paragraph:
"(8) provide assurances that the institution will comply with
the provisions of section 463 A;".
(b) Part E of title IV of the Act is amended by adding after section
463 the following new section:
" Sec. 463 A. // 20 USC 1087cc-1. // Each institution of higher
education, in order to carry out the provisions of section 463(a)(7),
shall, at the time such institution makes a loan to a student borrower
which is made under this part, provide thorough and adequate loan
information on loans made under this part to the student borrower. The
loan information required by this section shall include--,
"(1) the yearly and cumulative maximum amounts that may be
borrowed by a student;
"(2) the terms on which repayment will begin;
"(3) the maximum number of years in which the loan must be
repaid;
"(4) the interest rate that will be repaid and the minimum
amount of required monthly payment;
"(5) any special options the borrower may have for deferral,
cancellation, prepayment, consolidation, or other refinancing of
the loan;
"(6) a definition of default and the consequences to the
borrower if the borrower should default, including a description
of any arrangements made with credit bureau organizations; and
"(7) to the extent practicable, the effect of accepting the
loan on the eligibility of the borrower for other forms of student
assistance.".
Sec. 448. (a) Section 462 of the Act // 20 USC 1087bb. // is
amended by striking out subsection (d).
(b) Section 463(b) of the Act // 20 USC 1087cc. // is amended by
striking out "section 493" and inserting in lieu thereof "section 485".
(c)(1) Section 464(b) of the Act // 20 USC 1087dd. // is amended to
read as follows:
"(b) A loan from a student loan fund assisted under this part may be
made only to a student who demonstrates financial need in accordance
with section 482 and who meets the requirements of section 484.".
(2) Section 464(e) of the Act is repealed.
(d) Section 465(a)(2) of the Act // 20 USC 1087ee. // is amended by
striking out the last sentence and inserting in lieu thereof the
following: " For purposes of this paragraph, the term 'handicapped
children' has the meaning set forth in section 602(1) of the Education
of the Handicapped Act.".
(e) Section 465(a) of the Act is amended by adding at the end thereof
the following new paragraph:
"(5) The amount of a loan, and interest on a loan, which is canceled
under this section shall not be considered income for purposes of the
Internal Revenue Code of 1954.". // 26 USC 1. //
Sec. 451. (a) Part F of title IV of the Act is amended to read as
follows:
Assistance
Programs
" Sec. 481. (a)(1) For the purposes of this title, // 20 USC 1088.
// except subpart 6 of part A and part B, // 20 USC 1070e, 1071. // the
term 'institution of higher education' includes, in addition to the
institutions covered by the definition contained in section 1201(a)--,
// 20 USC 1141. //
"(A) a proprietary institution of higher education;
"(B) a postsecondary vocational institution;
"(C) a department, division, or other administrative unit in a
college or university which provides primarily or exclusively an
accredited program of education in professional nursing and allied
subjects leading to the degree of bachelor of nursing, or to an
equivalent degree, or to a graduate degree in nursing; and
"(D) a department, division, or other administrative unit in a
junior college, community college, college, or university which
provides primarily or exclusively an accredited two-year program
of education in professional nursing and allied subjects leading
to an associate degree in nursing or to an equivalent degree.
"(2) The term 'accredited' when applied to any program of nurse
education means a program accredited by a recognized body or bodies
approved for such purpose by the Secretary.
"(b) For the purposes of this section, the term 'proprietary
institution of higher education' means a school (1) which provides not
less than a six-month program of training to prepare students for
gainful employment in a recognized occupation, (2) which meets the
requirements of clauses (1) and (2) of section 1201(a), (3) which does
not meet the requirement of clause (4) of section 1201(a), (4) which is
accredited by a nationally recognized accrediting agency or association
approved by the Secretary for this purpose, and (5) which has been in
existence for at least two years. Such term also includes a proprietary
educational institution in any State which, in lieu of the requirement
in clause (1) of section 1201(a), admits as regular students persons who
are beyond the age of compulsory school attendance in the State in which
the institution is located and who have the ability to benefit from the
training offered by the institution. For purposes of this subsection,
the Secretary shall publish a list of nationally recognized accrediting
agencies or associations which he determines to be reliable authority as
to the quality of training offered.
"(c) For the purposes of this section, the term 'postsecondary
vocational institution' means a school (1) which provides not less than
a six-month program of training to prepare students for gainful
employment in a recognized occupation, (2) which meets the requirements
of clauses (1), (2), (4), and (5) of section 1201(a), and (3) which has
been in existence for at least two years. Such term also includes an
educational institution in any State which, in lieu of the requirement
in clause (1) of section 1201(a), admits as regular students persons who
are beyond the age of compulsory school attendance in the State in which
the institution is located and who have the ability to benefit from the
training offered by the institution.
"(d) For the purpose of any program under this title, the term
'academic year' shall be defined by the Secretary by regulation.
" Sec. 482. (a)(1) For the purpose of determining a student's need
for financial assistance under this title // 20 USC 1089. // (other
than under subpart 3 of part A and under part B), // 20 USC 1070c, //
the Secretary shall publish in the Federal Register, no later than July
1, 1981, April 1, 1982, and on April 1 of each succeeding calendar year,
a proposed schedule of expected family contributions for the academic
year which begins after July 1 of the calendar year which succeeds such
calendar year for various levels of family income, which, except as is
otherwise provided in paragraph (2), together with any amendments
thereto, shall become effective July 1 of the calendar year which
succeeds such calendar year. During the thirty-day period following
such publication the Secretary shall provide interested parties with an
opportunity to present their views and make recommendations with respect
to such schedule. Such schedule shall be adjusted annually.
"(2) The schedule of expected family contributions required for each
academic year shall be submitted to the President of the Senate and the
Speaker of the House of Representatives not later than the time of its
publication in the Federal Register. If either the Senate or the House
of Representatives adopts, prior to October 1, 1981, July 1, 1982, or
July 1 of any succeeding year following the submission of such schedule
as required by this paragraph, a resolution of disapproval of such
schedule, in whole or in part, the Secretary shall publish a new
schedule of expected family contributions in the Federal Register not
later than fifteen days after the adoption of such resolution of
disapproval. Such new schedule shall take into consideration such
recommendations as may be made in either House in connection with such
resolution. If within fifteen days following the submission of the
revised schedule either the Senate or the House of Representatives again
adopts a resolution of disapproval, in whole or in part, of such revised
schedule, the Secretary shall publish a new schedule of expected family
contributions in the Federal Register not later than fifteen days after
the adoption of such resolution of disapproval. This procedure shall be
repeated until neither the Senate nor the House of Representatives
adopts a resolution of disapproval. The Secretary shall publish
together with each new schedule a statement identifying the
recommendations made in either House in connection with such resolution
of disapproval and explaining his reasons for the new schedule.
"(3) The Secretary, in cooperation with representatives of agencies
and organizations involved in student financial assistance, shall
develop a proposed schedule of expected family contributions each year
for publication in the Federal Register.
"(b)(1) For the purposes of this section, the term 'family
contribution' with respect to any student means the amount which the
student and his family may be reasonably expected to contribute toward
his postsecondary education for the academic year for which the
determination is made, as determined in accordance with regulations. In
promulgating such regulations, the Secretary shall follow the basic
criteria set forth in paragraph (2) of this subsection.
"(2) The basic criteria to be followed in promulgating regulations
with respect to expected family contributions are as follows:
"(A) The amount of the effective income of the student or the
effective family income of the student's parents.
"(B) The number of dependents of the family of the student.
"(C) The number of dependents of the student's family who are
in attendance in a program of postsecondary education and for whom
the family may be reasonably expected to contribute for their
postsecondary education.
"(D) The amount of the assets of the student and the assets of
the student's family.
"(E) Any unusual expenses of the student or his family, such as
unusual medical expenses and those which may arise from a
catastrophe.
"(F) Any educational expenses of other dependent children in
the family.
"(3) For purposes of subparagraph (A) of paragraph (2), the term
'effective family income' with respect to a student, means the annual
adjusted family income, as determined in accordance with regulations
prescribed by the Secretary, received by the parents or legal guardians
of the student minus Federal, State and local taxes paid or payable with
respect to such income, and includes any amount paid under the Social
Security Act to, or on account of, the student which would not be paid
if he were not a student and one-half any amount paid the student under
chapters 34 and 35 of title 38, United States Code. // 38 USC 1651 //
The term 'effective family income' includes any effective student income
after any offset as determined by regulations prescribed by the
Secretary.
"(4) In determining the expected family contribution under this
section for any academic year after academic year 1978 - 1979, an
assessment rate of not more than 14 per centum shall be applied to
parental discretionary income for families with adjusted gross family
income which does not exceed $25,000 for each such year. The Secretary
may set an assessment rate or a series of assessment rates to be applied
to parental discretionary income for families with adjusted gross
incomes which exceed $25,000 for each such year for income in excess of
$25,000.
"(5) For the purposes of paragraph (2)(D), the assets shall be
determined by--,
"(A) excluding all equity in a single principal place of
residence from the computation of assets;
"(B) deducting an asset reserve of not less than $10,000 from
the net value of all assets; and
"(C) if net assets include farm or business assets, deducting
an additional asset reserve of not less than $50,000 from the net
assets.
"(c)(1) The Secretary shall promulgate special regulations for
determing the expected family contribution and effective family income
of an independent student. Such special regulations shall be consistent
with the basic criteria set forth in paragraph (2) of subsection (b).
In addition, such regulations shall--,
"(A) provide that the portion of assets which shall be exempt
from assessment for contribution for an independent student who
has one or more dependents shall be the same as the portion so
exempt for the family of a dependent student;
"(B) provide that the rate of assessment for contribution on
that portion of assets of such an independent student which is not
exempt under subparagraph (A) shall be the same as the rate
applied to the comparable portion of assets of the family of a
dependent student;
"(C) in establishing a portion of effective family income which
shall be exempt from assessment for contribution by reason of
subsistence requirements of independent students who have no
dependents, use the same method for computation of such portion
for such students as is used for dependent students and for
independent students who have dependents;
"(D) in determining the family contribution for an independent
student who has one or more dependents, provide that the
assessment rate which is to be applied to the student's
discretionary income shall be the same as the assessment rate
applied to discretionary income of the family of a dependent
student; and
"(E) provide that a married student shall be considered
independent if, notwithstanding prior dependency status, such
student certifies that in the year of application he (i) will not
live with parents for more than six weeks; (ii) will not be
claimed by parents as a dependent on any tax return filed for
purposes of Federal income taxes; and (iii) will not receive more
than $750 in support from parents.
"(2) For purposes of this title, the term 'independent student' means
a student who is determined, pursuant to regulations of the Secretary,
to be independent of the parents or legal guardians of the student.
"(d) For the purposes of this title, the term 'cost of attendance'
means--,
"(1) tuition and fees normally assessed a full-time student at
the institution at which the student is in attendance;
"(2) an allowance for books, supplies, transportation, and
miscellaneous personal expenses;
"(3) an allowance for room and board costs incurred by the
student which--,
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;
a
standard allowance determined by the institution based
on
the expenses reasonably incurred by such students for
room
and board; and
students
for room and board;
"(4) for a student engaged in a program of study by
correspondence, only tuition and fees and, if required, books and
supplies, and travel and room and board costs incurred
specifically in fulfilling a required period of residential
training;
"(5) for a student enrolled in an academic program which
normally includes a formal program of study abroad, reasonable
costs associated with such study;
"(6) for a student with dependent children,an allowance based
on the expenses reasonably incurred for child care; and
"(7) for a handicapped student, an allowance for those expenses
related to his handicap, including special services,
transportation, equipment, and supplies that are reasonably
incurred and not provided for by other assisting agencies.
"(e) Nothing in this section shall prohibit an institution, in
individual cases, from adjusting the financial need determination for a
student aided under subpart 2 of part A or part C or E of this title //
20 USC 1070b, 42 USC 2751, 20 USC 1088. // if the basis for such
adjustment is documented.
" Sec. 483. // 20 USC 1090. // (a) The Secretary, in cooperation
with representatives of agencies and organizations involved in student
financial assistance, shall prescribe a common Federal financial aid
application form to be used to determine the need and eligibility of a
student for financial assistance under this title (other than under
subpart 3 of part A and under part B). // 20 USC 1070c, 1071. // No
student or parent of a student shall be charged a fee for processing the
data elements of the form prescribed by the Secretary. The Secretary
shall, to the extent practicable, enter into not less than three
contracts with States, institutions of higher education, or private
organizations for the purpose of processing the application required
under this subsection and issuing eligibility reports. The Secretary
may also contract for additional services to assure coordination of
financial aid from both Federal and non--, Federal sources, and to
provide information, training, and similar services to institutions, aid
officers, counselors, lenders, parrents and students. Nothing in this
section shall prohibit States, institutions, or private organizations
from simultaneously collecting data elements, in addition to the data
elements prescribed by the Secretary, as may be necessary to determine
the eligibility of a student for financial aid funds not covered by this
title (or covered under subpart 3 of part A or under part B of this
title).
"(b) Copies of all rules, regulations, guidelines, instructions, and
application forms published or promulgated pursuant to this title shall
be provided to the Committee on Labor and Human Resources of the Senate
and the Committee on Education and Labor of the House of Representatives
at least thirty days prior to their effective date.
"(c) To help insure access to postsecondary education by providing
early notice to students of their potential eligibility for financial
aid, the Secretary is authorized to enter into contracts with States,
institutions of higher education, and private organizations for the
purpose of--,
"(1) developing a common pre-eligibility Federal financial aid
form,
"(2) distributing and processing such form on a year-round
basis free of charge to students, and
"(3) issuing on the basis of information reported by the
student on such form a pre-eligibility index designed to estimate
the amount of Federal (and, if feasible, non-Federal) funds for
which the student might qualify in later completing and submitting
the application form called for under this section.
The Secretary shall widely disseminate the pre-eligibility form through
post offices and other appropriate Federal installations, schools,
postsecondary institutions, libraries, and community-based agencies,
including projects assisted under subpart 4 of part A of this title.
" Sec. 484. // 20 USC 1091. // (a) In order to receive any grant,
loan, or work assistance under this title, a student must--,
"(1) be enrolled or accepted for enrollment at an institution
of higher education that is an eligible institution in accordance
with the provisions of section 487;
"(2) except as otherwise specifically provided, be carrying or
planning to carry at least one-half the normal full-time workload
for the course of study the student is pursuing, as determined by
the institution;
"(3) if the student is presently enrolled at an institution, be
maintaining satisfactory progress in the course of study the
student is prusuing according to the standards and practices of
the institution at which the student is in attendance;
"(4) not owe a refund on grants previously received at such
institution under this title, or be in default on any loan from a
student loan fund at such institution provided for in part E,
// 20 USC 1088. //
or a loan made, insured, or guaranteed by the Secretary under this
title for attendance at such institution; and
"(5) 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 statement of
educational purpose (which need not be notarized) 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.
"(b) Any permanent resident of the Trust Territory of the Pacific
Islands or of the Northern Mariana Islands shall be eligible for
assistance under this title to the same extent that citizens of the
United States are eligible for such assistance.
FOR
STUDENTS
" Sec. 485. // 20 USC 1092. // (a)(1) Each eligible institution
participating in any program under this title shall carry out
information dissemination activities for prospective and enrolled
students regarding the institution and financial assistance under this
title. The information required by this section shall be produced and
be made readily available, through appropriate publications and
mailings, to all current students, and to any prospective student upon
request. The information required by this section shall accurately
describe--,
"(A) the student financial assistance programs available to
students who enroll at such institution;
"(B) the methods by which such assistance is distributed among
student recipients who enroll at such institution;
"(C) any means, including forms, by which application for
student financial assistance is made and requirements for
accurately preparing such application;
"(D) the rights and responsibilities of students receiving
financial assistance under this title;
"(E) the cost of attending the institution, including (i)
tuition and fees, (ii) books and supplies, (iii) estimates of
typical student room and board costs or typical commuting costs,
and (iv) any additional cost of the program in which the student
is enrolled or expresses a specific interest;
"(F) a statement of the refund policy of the institution for
the return of unearned tuition and fees or other refundable
portion of cost, as described in clause (E) of this paragraph;
"(G) the academic program of the institution, including (i) the
current degree programs and other educational and training
programs, (ii) the instructional, laboratory, and other physical
plant facilities which relate to the academic program, and (iii)
the faculty and other instructional personnel;
"(H) each person designated under subsection (b) of this
section, and the methods by which and locations in which any
person so designated may be contacted by students and prospective
students who are seeking information required by this subsection;
"(I) special facilities and services available to handicapped
students;
"(J) the names of associations, agencies, or governmental
bodies which accredit, approve, or license the institution and its
programs, and the procedures under which any current or
prospective student may obtain or review upon request a copy of
the documents describing the institution's accreditation,
approval, or licensing; and
"(K) the standards which the student must maintain in order to
be considered to be making satisfactory progress, pursuant to
section 484(a)(3).
"(2) For purposes of this section, the term 'prospective student'
means any individual who has contacted an eligible institution
requesting information concerning admission to that institution.
"(b) Each eligible institution shall designate an employee or group
of employees who shall be available on a full-time basis to assist
students or potential students in obtaining information as specified in
subsection (a). The Secretary may, by regulation, waive the requirement
that an employee or employees be available on a full--, time basis for
carrying out responsibilities required under this section whenever an
institution in which the total enrollment, or the portion of the
enrollment participating in programs under this title at that
institution, is too small to necessitate such employee or employees
being available on a full-time basis. No such waiver may include
permission to exempt any such institution from designating a specific
individual or a group of individuals to carry out the provisions of this
section.
"(c) The Secretary shall make available to eligible institutions
descriptions of Federal student assistance programs including the rights
and responsibilities of student and institutional participants, in order
to (1) assist students in gaining information through institutional
sources, and (2) assist institutions in carrying out the provisions of
this section, so that individual and institutional participants will be
fully aware of their rights and responsibilities under such programs.
SERVICES
" Sec. 486. // 20 USC 1093. // (a) The Secretary is authorized to
enter into contracts with appropriate public agencies or nonprofit
private organizations or institutions of higher education to provide
training for 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 in postsecondary education in
postsecondary institutions, communities or statewide programs.
"(b) Financial assistance under this section may be used for--,
"(1) development of materials and inservice training and career
awareness programs;
"(2) operation of short-term training institutes designed to
improve the skills and career awareness of participants in such
institutes; and
"(3) special programs to assist in training of students and
part--, time staff or volunteers at institutions eligible for
assistance under title III of this Act.
// 20 USC 1051. //
"(c) There are authorized to be appropriated $1,000,000 to carry out
the provisions of this section for fiscal year 1981 and for each of the
succeeding fiscal years ending prior to October 1, 1985.
" Sec. 487. // 20 USC 1094. // (a) In order to be an eligible
institution for the purposes of any program authorized under this title,
an institution must be an institution of higher education or an eligible
institution (as that term is defined for purposes of that program) and
shall, except with respect to a program under subpart 3 of part A, // 20
USC 1070c. // enter into a program participation agreement with the
Secretary. The agreement shall condition the initial and continuing
eligibility of an institution to participate in a program upon
compliance with the following requirements:
"(1) The institution will use funds received by it for any
program under this title solely for the purposes specified in, and
in accordance with, the provisions of that program.
"(2) In the case of an institution participating in any program
authorized under subpart 2 of part A or part C of this title
// 20 USC 1070b, 42 USC 2751. //
for any fiscal year, the institution will continue to spend in its
own scholarship and student aid program, from sources other than
funds received under such parts, not less than the average
expenditures per year made for that purpose during the most recent
period of three fiscal years preceding the effective date of the
program participation agreement, except that, under special and
unusual circumstances prescribed by regulation, the Secretary is
authorized to waive the requirements of this paragraph.
"(3) The institution will establish and maintain such
administrative and fiscal procedures and records as may be
necessary to ensure proper and efficient administration of funds
received from the Secretary or from students under this title.
"(4) The institution will comply with the provisions of
subsection (b) of this section and the regulations prescribed
under that subsection, relating to fiscal eligibility.
"(5) The institution will submit reports to the Secretary and,
in the case of an institution participating in a program under
part B or part E,
// 20 USC 1071, 1088. //
to holders of loans made to the institution's students under such
parts at such times and containing such information as the
Secretary may reasonably require to carry out the purposes of this
title.
"(6) The institution will comply with the requirements of
section 485.
"(b)(1) Notwithstanding any other provisions of this title, the
Secretary is authorized to prescribe such regulations as may be
necessary to provide for--,
"(A) a fiscal audit of an eligible institution with regard to
any funds obtained by it under this title or obtained from a
student who has a loan insured or guaranteed by the Secretary
under this title;
"(B) the establishment of reasonable standards of financial
responsibility and appropriate institutional capability for the
administration by an eligible institution of a program of student
financial aid under this title;
"(C) the establishment, by each eligible institution under part
B responsible for furnishing to the lender the statement required
by section 428(a)(2)(A)(i),
// 20 USC 1078. //
of policies and procedures by which the latest known address and
enrollment status of any student who has had a loan insured under
this part and who has either formally terminated his enrollment,
or failed to re-enroll on at least a half-time basis, at such
institution, shall be furnished either to the holder (or if
unknown, the insurer) of the note, not later than sixty days after
such termination or failure to re--, enroll; and
"(D) the limitation, suspension, or termination of the
eligibility for any program under this title of any otherwise
eligible institution, or the imposition of a civil penalty under
paragraph (2)(B) whenever the Secretary has determined, after
reasonable notice and opportunity for hearing on the record, that
such institution has violated or failed to carry out any provision
of this title or any regulation prescribed under this title,
except that no period of suspension under this section shall
exceed sixty days unless the institution and the Secretary agree
to an extension or unless limitation or termination proceedings
are initiated by the Secretary within that period of time.
"(2)(A) Upon determination, after reasonable notice and opportunity
for a hearing on the record, that an eligible institution has engaged in
substantial misrepresentation of the nature of its educational program,
its financial charges, or the employability of its graduates, the
Secretary may suspend or terminate the eligibility status for any or all
programs under this title of any otherwise eligible institution, in
accordance with procedures specified in paragraph (1)(D) of this
subsection, until the Secretary finds that such practices have been
corrected.
"(B)(i) Upon determination, after reasonable notice and opportunity
for a hearing on the record, that an eligible institution--,
"(I) has violated or failed to carry out any provision of this
title or any regulation prescribed under this title; or
(II) has engaged in substantial misrepresentation of the nature
of its educational program, its financial charges, and the
employability of its graduates,
the Secretary may impose a civil penalty upon such institution of not to
exceed $25,000 for each violation or misrepresentation.
"(ii) Any civil penalty may be compromised by the Secretary. In
determining the amount of such penalty, or the amount agreed upon in
compromise, the appropriateness of the penalty to the size of the
institution of higher education subject to the determination, and the
gravity of the violation, failure, or misrepresentation shall be
considered. The amount of such penalty, when finally determined, or the
amount agreed upon in compromise, may be deducted from any sums owing by
the United States to the institution charged.
"(3) The Secretary shall publish a list of State agencies which the
Secretary determines to be reliable authority as to the quality of
public postsecondary vocational education in their respective States for
the purpose of determining eligibility for all Federal student
assistance programs.
"(c) For the purpose of this section the term 'eligible institution'
means any such institution described in section 435(a) of this Act. //
20 USC 1085. //
" Sec. 488. // 20 USC 1095. // Up to 10 per centum of the allotment
of an eligible institution for a fiscal year under section 413 D or 446
of this Act, may be transferred to, and used for the purposes of, the
institution's allotment under the other section within the discretion of
such institution in order to offer an arrangement of types of aid,
including institutional and State aid, which best fits the needs of each
individual student. The Secretary shall have no control over such
transfer, except as specifically authorized, except for the collection
and dissemination of information.
" Sec. 489. // 20 USC 1096. // (a) From the sums appropriated for
any fiscal year for purposes of the program authorized under subpart 1
of part A, // 20 USC 1070a. // the Secretary shall reserve such sums as
may be necessary to pay to each institution with which he has an
agreement under section 487, an amount equal to $10 for each student at
that institution who receives assistance under subpart 1 of part A. In
addition, an institution which has entered into an agreement with the
Secretary under subpart 2 of part A or part C (other than section 448),
of this title or under part E of this title // 20 USC 107b, 42 USC 2751.
// shall be entitled for each fiscal year for which it receives an
allotment by payment under any such part to a payment for the purposes
set forth in subsection (b). The payment for a fiscal year shall be
payable from each such allotment by payment in accordance with
regulations of the Secretary and shall be equal to 5 per centum of the
institution's first $2,750,000 of expenditures plus 4 per centum of the
institution's expenditures greater than $2,750,000 and less than
$5,500,000, plus 3 per centum of the institution's expenditures in
excess of $5,500,000 during the fiscal year from the sum of its grants
to students under subpart 2 of part A, its expenditures during such
fiscal year under part C for compensation of students, and the principal
amount of loans made during such fiscal year from its student loan fund
established under part E, excluding the principal amount of any such
loans which the institution has agreed to assign under section
463(a)(6)(B). The payment for a fiscal year for the purpose of
subsection (b) with respect to section 448 shall be payable from each
allotment under part C in accordance with regulations of the Secretary,
and shall be 10 per centum of the institution's expenditures during such
fiscal year under such section.
"(b) The sums paid to institutions under this part are for the sole
purpose of offsetting the administrative costs of the programs described
in subsection (a).
" Sec. 490. // 20 USC 1097. // (a) 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 shall be fined not more than $10,000 or imprisoned for
not more than five 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 $1,000 and
imprisonment shall not exceed one year, or both.
"(b) 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 shall, upon conviction thereof, be fined not
more than $1,000 or imprisoned not more than one year, or both.
"(c) Any person who knowingly and willfully makes an unlawful payment
to an eligible lender under part B // 20 USC 1071. // 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 $1,000 or
imprisoned not more than one year, or both.
"(d) Any person who knowingly and willfully destroys or conceals any
record relating to the provision of assistance under this title 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 $10,000 or imprisoned not
more than five years, or both.
" Sec. 491. // 20 USC 1098. // (a) There is established, as an
independent agency within the executive branch, a National Commission on
Student Financial Assistance (referred to in this section as the '
Commission').
"(b)(1) The Commission shall be composed of twelve members. Four of
the members shall be appointed by the President. Four of the members
shall be appointedby the Speaker of the House, including two Members of
the House, one from each political party. Four of the members shall be
appointed by the President pro tempore of the Senate, including two
Members of the Senate, one from each political party.
"(2) The Chairman shall be designated by the President from among the
members appointed by him. If the President has not appointed four
members of the Commission and designated a Chairman within sixty days of
the enactment of this Act, the members of the Commission appointed by
the Speaker of the House and the President pro tempore of the Senate
shall elect a Chairman who shall continue to serve for the duration of
the Commission.
"(3) Any vacancy in the Commission shall be filled by appointment of
the same person who appointed the person who has left the Commission.
"(c)(1) The Commission shall make a study of the following issues:
"(A) more effective means to reduce default, fraud, abuse, and
delinquency in the programs authorized by this title;
"(B) the appropriate balance between loans and other sources of
financing postsecondary education from the point of view of the
needs and welfare of students and their parents;
"(C) the adequacy of capital to serve the postsecondary
educational needs of students or their parents for credit; if
adequate credit is available, the likelihood it will continue to
remain available; if adequate credit is not available, the
likelihood it will become available and the steps that can be
taken to provide adequate credit for the postsecondary educational
needs of students;
"(D) the impact of various levels of student borrowing, grants,
gift aid, and employment on the educational performance, future
career choices, and future educational choices of students;
"(E) the impact of various levels of parent borrowing for
postsecondary education on parents;
"(F) the appropriate annual and aggregate self-help limits and
gift aid for parents, dependent students, and independent
students;
"(G) the most appropriate mechanism for the effective and
efficient origination, servicing, and collection of student loans
and for the effective and efficient delivery of other forms of
student assistance;
"(H) the most appropriate source or sources of student loan
capital considering both the cost and the reliability of adequate
capital availability;
"(I) the appropriate level of public subsidy to students and
parents for the cost of capital for student loans;
"(J) the impact of the availability of Federal student
financial assistance on the availability of student financial
assistance from all other sources;
"(K) the impact of the availability of student assistance,
particularly from Federal sources, on the level of postsecondary
education costs;
"(L) the most appropriate mechanism to provide students and
parents with the flexible repayment options and opportunities for
consolidation of student loan indebtedness;
"(M) means to remove barriers to capital availability caused by
patterns of lender discrimination;
"(N) the cost to the Federal Government of the arbitrage
derived from revenue bonds issued by agencies for the purpose of
making or purchasing loans under part B of this title
// 20 USC 1071. //
and the appropriate role of such bonds as a mechanism for raising
student loan capital; and
"(O) the effectiveness in serving the purposes of this title of
the existing formulas for allotment among the States in subpart 2
of part A and in parts C and E of this title.
// 20 USC 1070b, 42 USC 2751, 20 USC 1088. //
"(2) The Commission shall make a study of the insurance premium
charged by an insurer pursuant to section 428(b)(1)(H) in order to
determine if the rate of the insurance premium exceeds the rate
necessary to protect the reserves of the insurer and to determine if a
statutory limit should be enacted for the rate of such premium.
"(3)(A) The Commission shall make a study of an improved method or
methods for determination of the quarterly rate of special allowances
paid under part B of this title which the Commission determines will
carry out the objectives set forth in section 438(a).
"(B) The Commission shall make every effort to reach a unanimous
decision with respect to the method for determination of the quarterly
rate of the special allowances required to be studied by this paragraph.
"(C) In developing the method for the determination of the quarterly
rate of the special allowances under this paragraph, the Commission
shall consider--,
"(i) the experiences of students and eligible lenders under the
method in operation during the period of the study,
"(ii) the administrative costs of various types of eligible
lenders under part B of title IV,
"(iii) relevant and widely available financial indicators which
accurately reflect the costs of capital invested in programs under
such part, or substitute financial indicators which equitably
represent the cost of such capital,
"(iv) an administrative mechanism necessary to produce a prompt
and rapidly disseminated determination of the quarterly rate of
the special allowances, in order to avoid delays in the
determination and dissemination of that rate and in the actual
payment of the special allowances to eligible lenders, and
"(v) such other factors as the Commission considers necessary
to carry out the purposes of section 438(a).
"(4) The Commission shall conduct a study to determine if
institutions of higher education which meet the requirements of section
1201(a) (other than the provisions of subclauses (A) and (B) // 20 USC
1141. // of clause (5) of such section), but fail to meet such
requirements because the institution is not located in a State, should
be included in the definition of institution of higher education under
section 481.
"(5) The Commission shall conduct a study to determine if student
eligibility for financial assistance under section 484 on the basis of
maintaining satisfactory academic progress should include provisions
which would require that a student complete successfully a specified
portion of the workload undertaken during the academic period for which
assistance was received by the student.
"(6) The Commission shall, in consultation with the National Center
for Education Statistics, conduct longitudinal studies of high school
students in order to determine the effect of federally authorized
student assistance programs upon postsecondary education access and
choices of high school students.
"(7)(A) The Commission shall, in consultation with appropriate higher
education associations and representatives from institutions of higher
education, collect data necessary for the study of graduate education
throughout the United States required by this paragraph. Such study
shall--,
"(i) analyze trends and shortcomings in the sources of support
available to students for the financing of graduate education, and
compare the nature and level of support available in the various
academic disciplines, including sources of support from student
assistance and research programs sponsored by--,
entities,
and
in addition, consider the resources of the students and the
students' families;
"(ii) examine the extent to which students may be dissuaded
from pursuing graduate education on financial grounds, to the
consequent detriment of--,
the
most able and talented students of each generation if
they
are to remain strong and vigorous; and
promising
students are precluded because of financial
circumstances
from developing their capacities and abilities to the
fullest
possible extent;
"(iii) investigate existing and projected levels of graduate
student indebtedness, and consider the implications (for the
students involved and for the health of graduate education
generally) or existing and projected expectations for borrowing to
meet the costs of graduate education;
"(iv) assess the desirability of modifying existing Federal
fellowship and student assistance programs or establishing a new
Federal graduate student assistance program in which the selection
of students and the amounts of their awards are based on merit or
financial need or both, particularly with regard to the special
needs of students in the humanities and social sciences or other
disciplines; and
"(v) examine and assess the financial and educational needs of
individuals from disadvantaged backgrounds in order to enhance
their participation in graduate and professional education and
their potential for employment in occupational areas where these
individuals are underrepresented.
"(B) In conducting the study described in this paragraph, the
Commission shall consult with representatives of the National Science
Foundation, the National Endowment for the Humanities, the National
Endowment for the Arts, and representatives of higher education
institutions and associations, learned societies, and professional
organizations.
"(8)(A) The Commission shall conduct a study of a proposal to amend
the guaranteed student loan program authorized by part B of title IV //
20 USC 1071. // by recapturing interest subsidies from borrowers who do
not obtain loans for undergraduate study under such part by reason of
need or who borrow under such part for graduate study to the extent such
loans are made for graduate study. In conducting such study, the
Commission shall analyze the long term effect on the Budget of the
United States of recapturing the interest subsidy in accordance with
such proposal outlined in this paragraph and the impact of such proposal
on the availability of funds for postsecondary education for students.
"(B) In conducting the study under this paragraph, the Commission
shall also consider other alternative proposals designed to reduce the
cost of the guaranteed student loan program under part B of title IV in
fiscal years subsequent to fiscal year 1982 and the impact of such
proposals on the availability of funds for postsecondary education for
students.
"(d)(1) The Commission shall prepare and submit reports and
recommendations to the President and to the Congress on the studies
required to be conducted under subsection (c) of this section. The
reports for the studies required by paragraphs (2), (3), (5), and (8) of
such subsection shall be submitted as soon as practicable but in no
event later than one year after the date of the first meeting of the
Commission. The reports for the studies required by paragraphs (1),
(4), (6), and (7) shall be submitted as soon as practicable but in no
event later than July 1, 1983.
"(2) Any recommendations and reports submitted under this paragraph
which contemplate changes in Federal legislation shall include draft
legislation to accomplish the recommendations.
"(3) The Commission shall cease to exist 90 days following the
submission of its final report.
"(e)(1) Members of the Commission who are officers or full-time
employees of the United States shall serve without compensation in
addition to that received for their services as officers or employees of
the United States; but they may be allowed travel expenses, including
per diem in lieu of subsistence, as authorized by section 5703 of title
5, United States Code, for persons in the Government service employed
intermittently.
"(2) Members of the Commission who are not officers or full-time
employees of the United States may each receive $150 per diem when
engaged in the actual performance of duties vested in the Commission.
In addition, they may be allowed travel expenses, including per diem in
lieu of subsistence, as authorized by section 5703 of title 5, United
States Code, for persons in the Government service employed
intermittently.
"(f) Such personnel as the Commission deems necessary may be
appointed by the Commission without regard to the provisions of title 5,
United States Code, governing appointments in the competitive service,
and may be paid without regard to the provisions of chapter 51 and
subtitle III of chapter 53 of such title // 5 USC 5101 // relating to
classification and General Schedule pay rates, but no individual so
appointed shall be paid in excess of the rate authorized for GS-18 of
the General Schedule. // 45 FR 69201. //
"(g)(1) The Commission or, on the authorization of the Commission,
any committee thereof, may, for the purpose of carrying out the
provisions of the Act, hold such hearings and sit and act at such times
and such places within the United States as the Commission or such
committee may deem advisable.
"(2) In carrying out its duties under the Act, the Commission shall
consult with other Federal agencies, representatives of State and local
governments, and private organizations to the extent feasible.
"(3) The Commission is authorized to secure directly from any
executive department, bureau, agency, board, commission, office,
independent establishment, or instrumentality, information, suggestions,
estimates, and statistics for the purpose of this section, and each such
department, bureau, agency, board, commission, office, establishment, or
instrumentality is authorized and directed, to the extent permitted by
law, to furnish such information, suggestions, estimates, and statistics
directly to the Commission, upon request made by the Chairman.
"(4) For the purpose of securing the necessary data and information
the Commission may enter into contracts with universities, research
institutions, foundations, and other competent public or private
agencies. For such purpose, the Commission is authorized to obtain the
services of experts and consultants in accordance with section 3109 of
title 5, United States Code.
"(5) The heads of all Federal agencies are, to the extent not
prohibited by law, directed to cooperate with the Commission in carrying
out this section.
"(6) The Commission is authorized to utilize, with their consent, the
services, personnel, information and facilities of other Federal, State,
local and private agencies with or without reimbursement.
"(7) The Commission shall have authority to accept in the name of the
United States, grants, gifts, or bequests of money for immediate
disbursement in furtherance of the functions of the Commission. Such
grants, gifts, or bequests, after acceptance by the Commission, shall be
paid by the donor or his representative to the Treasurer of the United
States whose receipts shall be their acquittance. The Treasurer of the
United States shall enter them in a special account to the credit of the
Commission for the purposes in each case specified.
"(8) Six members of the Commission shall constitute a quorum, but a
lesser number of two or more may conduct hearings.
"(h) There is authorized to be appropriated an amount not to exceed a
total of $10,000,000 for fiscal years beginning on or after October 1,
1980, to carry out the provisions of this section, which shall remain
available until expended or until the termination of the Commission,
whichever occurs first.".
(b) Section 440 of the Act // 20 USC 1087 - 4. // is repealed.
(c) The amendments made by section 6 of the Middle Income Student
Assistance Act // 20 USC 1088 // shall take effect on July 1, 1972.
(d) Section 438 of the Act // 20 USC 1088. 20 USC 1087 - 1. // is
amended by striking out subsections (e), (f), and (g).
Sec. 501. (a) Section 511(b) of the Act // 20 USC 1101. // is
amended to read as follows:
"(b) For the purpose of carrying out the provisions of this part,
there are authorized to be appropriated $45,000,000 for the fiscal year
1981, $50,000,000 for the fiscal year 1982, $60,000,000 for the fiscal
year 1983, $70,000,000 for the fiscal year 1984, and $80,000,000 for the
fiscal year 1985.".
(b) The first sentence of section 531 of the Act // 20 USC 1119. //
is amended to read as follows: " There are authorized to be
appropriated $20,000,000 for the fiscal year 1981, $30,000,000 for the
fiscal year 1982, $40,000,000 for the fiscal year 1983, $50,000,000 for
the fiscal year 1984, and $55,000,000 for the fiscal year 1985 to carry
out the provisions of this part.".
Sec. 502. (a) Section 513(a) of the Act // 20 USC 1103. // is
amended by striking out "and" at the end of paragraph (8), by striking
out the period at the end of paragraph (9) and inserting in lieu thereof
"; and" and by inserting after such paragraph the following:
"(10) make grants to schools, colleges and departments of
education and local educational agencies with high concentrations
of low income students for the purpose of--,
offerings
or instructional materials for the purpose of improving
instruction in the areas of--,
increase
their effectiveness in developing instructional
materials
and teaching science and mathematics related subject
matter.".
(b) Section 513(c)(2) of the Act is amended--,
(1) by striking out " Not to exceed 5 per centum" and inserting
in lieu thereof " Not to exceed 2 per centum"; and
(2) by striking out " Puerto Rico," each place it appears.
(c) Section 513(d) of the Act is amended by striking out "section
205(a)(2) of Public Law 874, Eighty-first Congress, as amended," and
inserting in lieu thereof "section 130 of the Elementary and Secondary
Education Act of 1965".
(d) Section 513(f) of the Act is amended by striking out "goal" and
inserting in lieu thereof "the goal".
(e) Section 514(a)(2) of the Act // 20 USC 1104. // is amended by
striking out ", not to exceed $150 per week plus $15 per week for each
dependent".
Sec. 503. (a) Section 531 of the Act // 20 USC 1119. // is amended
by striking out " In the event that sums exceeding $50,000,000 are
appropriated in any fiscal year for purposes of carrying out this part,
each" and inserting in lieu thereof " Each".
(b) Section 532(a)(2) of the Act // 20 USC 1119a. // is amended--,
(1) by striking out "local educational agency (or a combination
of such agencies) which serve" and inserting in lieu thereof
"local educational agency, a combination of such agencies, or an
educational service agency which serves";
(2) by inserting "and, where desirable, in collaboration with
one or more institutions of higher education which serve teachers"
immediately after "experts as may be necessary";
(3) by inserting ", including the use of technology and
telecommunications" immediately before the semicolon in
subparagraph (A);
(4) by inserting ", testing," immediately after "curriculum
development" in subparagraph (B).
(c) The first sentence of section 532(b) of the Act // 20 USC 1119a.
// is amended by inserting before the period "and, where appropriate,
bilingual education teachers".
Sec. 504. Section 533 of the Act is amended to read as follows:
" Sec. 533. // 20 USC 1119a-1. // (a) The Secretary is authorized to
make grants to schools of education for the purposes of--,
"(1) developing model projects within schools of education to
carry out improved preservice or support activities for preparing
elementary or secondary school teachers;
"(2) achieving diversification and redirection of education
programs for elementary and secondary school teachers in order to
make maximum use of human resources in the fields of education and
public service;
"(3) retraining faculty members of such schools of education to
provide courses of study for training elementary and secondary
school teachers to teach in programs of career education,
education of the gifted and talented children, education of
handicapped individuals, community education, adult education
programs, earth sciences, and other related programs;
"(4) training and orientation projects for faculty members of
schools of education designed to prepare the faculty to teach and
train personnel to work in conjunction with personnel who carry
out projects under the Comprehensive Employment and Training Act
// 29 USC 801 //
and under title VIII of this Act, relating to cooperative
education and training of individuals to prepare for the work--,
place; and
"(5) training educational personnel who will specialize in the
implementation of the urban and environmental policies of the
United States, and for other areas of critical need within
education which are developing or are likely to develop as
provided in section 406(b)(5) of the General Education Provisions
Act.
// 20 USC 1221e-1. //
"(b) The Secretary is authorized to make grants to schools of
education for the fiscal year 1981 and for each of the four succeeding
years to carry out model projects for the purposes set forth in
subsection (a). No grant may be made under this subsection unless an
application is made to the Secretary, at such time, in such manner, and
containing or accompanied by such information as the Secretary may
reasonably require.
"(c)(1) The Secretary is authorized to enter into agreements with
consortia of schools of education for planning programs designed to help
member schools of the consortium to diversify and redirect programs and
curricula of the member schools of education.
"(2)(A) The Secretary shall develop criteria for determining the
regions of the country in which consortia of schools of education are to
be established.
"(B) No consortium may receive a grant in excess of $200,000 in any
fiscal year under this section.
"(C) No cooperative agreement may be entered into under this section
unless an application is submitted through the State education agency of
the State in which the applicant is located. Each such State agency
will review and approve the application to assure its consistency with
the comprehensive plan mandated by sections 404(a)(12) and 522(2) of the
Elementary and Secondary Education Act of 1965. Such application shall
be submitted at such time, in such manner, and containing or accompanied
by such other information as the Secretary may reasonably require.
"(d) For purposes of this section, the term 'schools of education'
means institutions of higher education, and administrative units of
institutions of higher education, specializing in the training of
individuals to serve as teachers, guidance and counseling personnel,
administrative personnel, or other education specialists.".
AREAS WITH A
SHORTAGE
Sec. 505. (a) Title V of the Act is amended by adding after part B
the following new part:
With a
Shortage