Summary of HR 6, The Higher Education Amendments of 1998 H.R. 6, the Higher Education Amendments of 1998, contains a reauthorization of the Higher Education Act. The bill amends all twelve Titles of the current Act. Most of the funds appropriated for the Act are appropriated for programs under Title IV, Student Financial Assistance. Title I - General and Administrative Provisions This Title contains general and administrative provisions related to the Act. Part A - Definitions Part A provides for the consolidation of the various definitions of institution of higher education into one Part with one section establishing the general definition applicable to institutions of higher education and a second section establishing the definition of institution of higher education for purposes of participating in the Title IV programs. Part B - Additional General Provisions Part B reflects the transfer of existing sections currently found in Title XII, in addition to related new provisions included in the conference agreement. Section 112 includes a new Sense of Congress stating that students should not be excluded, on the basis of protected speech and association, from participation in, be denied the benefits of, or be subjected to discrimination or official sanction under any education program, activity, or division directly or indirectly receiving financial assistance under the Higher Education Act. Section 113 continues the eligibility of institutions located in the Freely Associated States to participate in the TRIO programs. Section 119 includes the new Collegiate initiative to Reduce Binge Drinking and illegal Alcohol Consumption: This provision provides for a Sense of Congress stating that college presidents should appoint a task force to conduct a full examination of student and academic life at the institution and recommend policy and program changes for reducing alcohol and other drug-related problems. Also included is a new grant and recognition award program to encourage institutions of higher education to create excellent alcohol and drug abuse prevention and education programs. Each year, institutions with outstanding programs may be eligible to receive a recognition award for their outstanding programs. The grant program is authorized at $5 million and the recognition awards are authorized at $750,000 for FY 1999. Part C -- Cost of Higher Education This Part contains provisions to strengthen opportunities for all Americans to obtain an affordable, high quality postsecondary education by providing parents and students with better information to make informed decisions about preparing for college. Information on the Cost of Higher Education Requires the National Center for Education Statistics to convene a series of forums to develop a nationally consistent set of standards for reporting costs incurred by institutions. Requires the Secretary of Education to make information on tuition and fees and yearly increases in tuition and fees available to parents and students by institution and sector on a yearly basis, and in an easily understandable form. Study on the Cost of Higher Education Requires the National Center for Education Statistics to conduct a longitudinal study on rising college costs and the factors driving them. The purpose of the study is to ensure that the public has clear information regarding tuition increases. This analysis is to include information on: changes in tuition and fees; trends in expenditures for faculty salaries and benefits; administrative salaries, benefits, and expenses; academic support services and research; operators and maintenance; evaluation of institutional expenditures for construction and technology, and the cost of replacing instructional buildings and equipment; and an analysis of the extent to which institutional aid and discounting policies have effected tuition increases. Part D -- Performance-Based Organization and Student Loan Ombudsman This Part establishes a performance-based organization (PBO) for the delivery of student financial assistance. The PBO is established within the Department of Education and will be responsible for all aspects of managing the data and information systems that support the student financial assistance programs authorized under Title IV. A non-political, non-civil service Chief Operating Officer with demonstrated management ability and expertise in information technology and financial services would manage the PBO. In addition, a new "Student Loan Ombudsman" position will be created within the PBO to assist students and former students in solving problems associated with their student loans. Title II - Improving Teacher Quality This Title provides for a single authorization to provide funds for States to improve teacher quality and the recruitment of highly qualified students into the field of teaching. Provides a single authorization for three separate grant programs focusing on improving teacher quality and the recruitment of highly qualified teachers. Specifically, 45% of the total amount will be for State Grants; 45% will be for Partnership Grants; and i0% will be for Recruitment Grants. Under the State Grants, Governors (or appropriate educational entities), will have the ability to use funds to improve the accountability of teacher preparation programs; reform teacher certification requirements; expand alternative routes to teacher certification; promote performance based-compensation for teachers; streamline the process for removing incompetent or unqualified teachers; recruit highly qualified teachers; and implement efforts to end the practice of social promotion. in addition, Grants will be provided to Partnerships of institutions of higher education, schools of arts and sciences, high need local education agencies, and others. Funds provided to these Partnerships are to be used for activities such as improving accountability of teacher preparation programs; providing clinical experience and professional development; and for the recruitment of highly qualified teachers. A separate grant provides both States and Partnerships the ability to compete for funds specifically targeted toward teacher recruitment. This Title also includes strong accountability for States and Partnerships receiving grants to ensure funds are being effectively used to improve student achievement and raise the level of teacher quality. In addition, each institution of higher education receiving Federal assistance will be held accountable for disseminating information on the quality of their program based upon criteria such as the pass rates of their graduates on teacher assessments. States will also be required to identify poor performing teacher preparation programs. Those programs loosing State support will be prohibited from accepting or enrolling any student, who receives aid under Title IV of the Higher Education Act, in the institution's teacher preparation program. Title III - Institutional Aid This Title makes grant funds available to institutions in order to assist institutions in strengthening their academic programs and their financial stability. Institutions must serve large proportions of financially disadvantaged students and have low per-student expenditures in order to qualify for aid. Part A -- Strengthening iInstitutions This Part provides Federal financial assistance to strengthen institutions of higher education that are in severe financial hardship. Funds may be used for a variety of purposes, including faculty development, improvement of institutional management, strengthening of academic programs, equipment acquisition, joint use of facilities with other institutions, and student services. Establishes a new section of authorized activities that indicates activities similar to those authorized for other institutions under Title 11i as well as reflecting the increased use of technology and new communication technologies in providing a quality higher education. Permits institutions to use up to 20 percent of their grant funds for establishing and/or improving their endowment funds and requires that the institutions provide an equal or greater amount for such purposes from non-Federal funds. Requires an institution that has received a grant under Title 11i to wait a two-year period before being eligible for another grant, excluding planning grants and cooperative grants. Authorization of Appropriations: $135 million for FY 1999 and such sums through FY 2003. Section 3i6 -- American Indian Tribally Controlled Colleges and Universities: Establishes a new section to Provide assistance to American Indian Tribally Controlled Colleges and Universities. Authorization of Appropriations: $10 million for FY 1999 and such sums through FY 2003. Section 317 -- Alaska Native and Native Hawaiian-Serving Institutions: Establishes a new section to Provide assistance to Alaska Native and Native Hawaiian-Serving institutions. Authorization of Appropriations: $5 million for FY 1999 and such sums through FY 2003. Part B -- Historically Black Colleges and Universities (HBCUS) This Part authorizes a formula grant program for HBCUs with undergraduate programs, as well as a separate program for certain designated HBCU graduate and professional programs and schools for establishing or strengthening the physical plants, financial management, academic resources, and endowment for HBCUS. To be eligible for funds under this Part, an institution must have been established prior to i964 with the ongoing mission of educating African Americans. Establishes a new subsection to permit institutions to use up to 20 percent of their grant funds for establishing and/or Improving their endowment funds and requires that the institutions Provide an equal or greater amount for such purposes from non-Federal funds. Authorization of Appropriations: $135 million of FY 1999 and such sums through FY 2003. Professional or Graduate Institutions Limits the use of program grants under this Part for other graduate programs to mathematics, engineering, and physical or natural sciences. Requires institutions to Provide matching funds for any amount over $1 million and provides for a reallocation plan for funds that remain after the initial distribution. Includes a new list of authorized use of funds reflecting current law and adds scholarships, fellowships and other financial assistance for needy graduate and professional students for the completion of specific doctoral degrees. Adds Norfolk State University and Tennessee State University as new institutions eligible for grants under this Part. Authorization of Appropriations: $35 million for FY 1999 and such sums through FY 2003. Part C -- Endowment Challenge Grants for institutions Eligible for Assistance under Part A and B Part C is authorized at $10 million for FY 1999 and such sums through FY 2003. Part D -- HBCU Capitol Financing Expands the definition of an eligible project to include facilities used for the administration of educational programs, student centers or student unions, maintenance, storage or utility facilities, and outpatient health care facilities constructed for use by students or faculty. Makes other changes with respect to escrow amounts, technical assistance, and board membership as recommended by the HBCU Capital Financing Board. Part E -- Minority Science and Engineering improvement Program The conference agreement continues the Minority Science and Engineering improvement Program and expands the definition of science to include behavioral science. The program is authorized at $10 million for FY 1999 and such sums through FY 2003. Part F -- General Provisions Expands the application requirements to include an applicant's performance goals, permits the Secretary to develop a preliminary application for use prior to the submission of the principal application, and provides for various waivers and exemptions. Title IV - Student Assistance Part A -- Grants to Students in Attendance at institutions of Higher Education Subpart 1 -- Pell Grants This Subpart authorizes the largest need-related Federal postsecondary student grant program administered by the U.S. Department of Education. The purpose of this program is to assist students from low-income families who would not otherwise be financially able to attend a postsecondary institution. The authorized Pell maximum is set as follows: $4500 for academic year 1999-2000 $4800 for academic year 2000-200i $5i00 for academic year 200i-2002 $5400 for academic year 2002-2003 $5800 for academic year 2003-2004 Continues the tuition sensitivity formula, but the formula is triggered when the maximum grant level equals $2700. Permits institutions to determine a student's allowance for dependent care and disability-related expenses under the tuition sensitivity trigger. Maintains the minimum Pell grant award at $400 with students eligible for amounts between $200-$399 receiving $400. Requires the Secretary to promulgate regulations implementing a provision granting the Secretary the authority to allow students to receive two Pell grants during a single award year. Eliminates schools from participation in the Pell Grant Program if eliminated from the student loan programs due to high cohort default rates. Expands Pell eligibility to include certain postbaccaureate teaching certificate programs. Subpart 2 -- Federal Early Outreach and Student Service Programs This Subpart authorizes programs to provide services to increase disadvantaged students expectation of completing high school, entering and completing a postsecondary education, and preparing students for doctoral programs. Chapter I -- Federal TRIO Programs The Federal TRIO programs include Upward Bound, Talent Search, Student Support Services, Educational Opportunity Centers, and the Ronald E. McNair Postbaccalaureate Achievement. Reauthorizes the existing programs at current minimum grant levels. Encourages the coordination of TRIO programs with other programs serving disadvantaged students by explicitly permitting the Director of a program receiving trio funds to administer other programs for disadvantaged youths regardless of their funding sources. Expands permissible services offered through Talent Search programs to include assistance in reentering school or receiving a GED, and activities designed to acquaint youth with careers in which individuals with disadvantaged backgrounds are underrepresented. Further expands Talent Search workshops to serve all appropriate family members. Expands permissible services offered through Upward Bound projects to include counseling, workshops, and work-study activities to expose participants to careers requiring a postsecondary degree, and specifically allows programs to offer special services to enable veterans to participate in postsecondary education. Increases the stipend for Upward Bound students participating in summer work-study positions to $300/month for the months of June, July, and August. Increases the stipend for students participating in the Ronald E. McNair Postbaccalaureate Achievement Program to $2800. Modernizes trio Staff Development activities to ensure training in the use of appropriate educational technology. Modifies the purpose of the trio evaluation authority to that of improving the effectiveness of the program and expands the evaluation of trio programs to include the effectiveness of alternative and innovative methods within trio programs to increase access to, and retention of students in postsecondary education. The trio programs are authorized at $700 million for FY 1999 and such sums through FY 2003. Repeals Chapters 3-8 (Chapter 3--Presidential Access Scholarships; Chapter 4-Model Program Community Partnership and Counseling Grants; Chapter 5--Public information; Chapter 6--National Student Savings Demonstration Program; Chapter 7--Pre-eligibility Form; and Chapter 8--Technical Assistance for Teachers and Counselors). Chapter 2 -- GEAR UP Merges the "High Hopes for College" program included in the House bill and the "Connections" program included in the Senate bill to create the "Gaining Early Awareness and Readiness for Undergraduate Programs" (GEAR UP). This new program provides early-intervention and college awareness for eligible low-income students. Provides an array of early intervention services to middle schools serving a high percentage of low-income students. Requires partnerships to include a degree-granting institution of higher education, a middle school that has at least 50 percent of its students eligible for free or reduced price lunches, the high schools that these students will attend, and at least two community organizations. Authorization of Appropriations: $200 million for FY 1999 and such sums through FY 2003. Chapter 3 -- Academic Achievement incentive Grants Chapter 3 authorizes the Secretary to grant awards equal to a student's Pell Grant to freshman and sophomores who graduate in the top i0 percent of their high school graduation class. Authorization of Appropriations: $24 million for FY 1999 and such sums through FY 2003. Subpart 3 -- Federal Supplemental Education Opportunity Grants This program provides Federal funds to eligible institutions for grants to assist undergraduates with exceptional need pay for their postsecondary education. The formula for distributing SEOG funds to institutions of higher education is modified in order to ensure that additional funds appropriated for this program are distributed to institutions on a fair share basis. Allows institutions to carry forward and carry back up to 10% of their SEOG funds. Authorization of Appropriations: $675 million for FY 1999 and such sums through FY 2003. Subpart 4 -- Leveraging Educational Assistance Partnership Program (LEAP) This Subpart renames the State Student incentive Grant Program as the Leveraging Educational Assistance Partnership Program (LEAP). includes a new Special Leveraging Educational Assistance Partnership Program for States that are willing to increase the current match required to obtain funds whenever appropriations exceeds $30 million. States that apply for additional funds may use the funds to assist needy students by: Increasing State grant aid; Carrying out transition programs from secondary to postsecondary education; Making funds available for community service work-study activities; Establishing a scholarship program for students entering programs of study leading to degrees in mathematics, computer science, engineering, the teaching field, computer-related fields, or other fields of study determined by the State to be critical to the State's workforce need; Carrying out early intervention programs; Awarding merit aid to needy students. Authorization of Appropriations: $105 million for FY 1999 and such sums through FY 2003. Subpart 5 -- Special Programs for Students Whose Families are Engaged in Migrant and Seasonal Farmwork Requires grant recipients to coordinate its projects to the extent feasible with other local, State, and Federal programs to maximize the resources available for migrant workers. Requires the National Center for Educational Statistics to collect postsecondary education data on migrant students. Authorization of Appropriations: $15 million for the High School Equivalency Program for FY 1999 and such sums through FY 2003 and $5 million for the College Assistance Migrant Program for FY 1999 and such sums through FY 2003. Subpart 6 -- Robert C. Byrd Honors Scholarship Program This program authorizes the Secretary to make grants to States to enable States to award scholarships to individuals who have demonstrated outstanding academic achievement and who show promise of continued academic achievement. Authorization of Appropriations: $45 million for FY 1999 and such sums through FY 2003. Subpart 7 -- Child Care Access Means Parents in School This Subpart creates a new campus-based child care program to assist institutions of higher education in providing campus-based child care services to low-income students. Authorizes the Secretary to make award grants to institutions to assist in providing campus-based child care services, including before and after school services, to low income students and sets the minimum grant award at $10,000 for four years. Requires institutions wishing to receive a grant to demonstrate the need of low income students at the institution for child care services and identify resources that it can draw upon to support the program and show that any resources used will not result in increases in student tuition. Requires each institution to report to the Secretary data on the population served, funding used for campus and community services, progress made toward accreditation of any child care facility, and the impact of the grant on the quality, availability, and affordability of campus-based child care services. Authorization of Appropriations: $45 million for FY 1999 and such stuns through FY 2003. Subpart 8 -- Learning Anytime Anywhere Partnerships This Subpart creates a new program to enhance the delivery, quality, and accountability of postsecondary education and career-oriented lifelong learning through technology and related innovations. Authorizes the Secretary to make grants, or enter into contracts or cooperative agreements with eligible partnerships to develop and assess model distance learning programs or innovative software, methodologies for identifying and measuring skill competencies, and assessing innovative student support services. Grants are authorized for five years. Requires that Federal funds provide not more than 5 percent of the cost of the project. Authorization of Appropriations: $10 million for FY 1999 and such sums through FY 2003. Part B -- Federal Family Education Loan Programs This Part authorizes the Federal Family Education Loan Programs (FFEL) to insure and subsidize loans private lenders make to students and their parents to help them meet the costs of postsecondary education. Changes Affecting Guaranty Agencies: The conference agreement dramatically restructures the current guaranty agency financing structure and is designed to promote increased cost efficiencies on the part of the guaranty agencies. The conference agreement does the following: Requires guaranty agencies to return $250 million in outstanding reserve funds to the Federal government. Requires the establishment of a Federal Student Loan Reserve Fund within 60 days of enactment; specifies that the Federal Fund is the property of the Federal government; and specifies the payments that are to be deposited in the Fund. Stipulates that the Federal Fund may only be used by a guaranty agency to pay lender claims and to pay default aversion fees to the Agency Operating Fund. Clarifies that the Federal Fund and assets purchased by the Federal Fund are the property of the Federal government, including non-liquid assets purchased with reserve funds in the Federal Fund prorated on the percentage of the asset developed or purchased with Federal reserve funds. Limits the transfer of Federal funds to the Agency Operating Fund during the three year transition period to a maximum of 45 percent of the Federal Fund balance as of September 30, 1998. Guaranty agencies are only allowed to borrow what they need to meet 180 days cash for normal operating expenses. Requires sufficient funds to remain in the Federal Fund to meet the reserve fund recall requirements of this Act and the Balanced Budget Act of 1997. Requires repayments of any Federal funds borrowed to begin no later than the start of the fourth year after the establishment of the Agency Operating Fund and requires the guaranty agency to provide a reasonable schedule for the repayment of Federal funds transferred to the Agency Operating Fund. Requires an annual financial analysis demonstrating the ability to repay borrowed funds by guaranty agencies when there are Federal amounts owed to the Federal Fund. Prohibits the guaranty agency from receiving any other funds under Part B if the guaranty agency fails to make scheduled payments. Creates an Agency Operating Fund as part of the new financing structure. Requires funds to be invested in accordance with prudent investor standards, and requires the guaranty agency to make certain deposits into the Operating Fund. Stipulates the use of funds in the Operating Fund to include application processing; loan disbursement; enrollment and repayment status management; default prevention activities; default collection activities; school and lender training; financial aid awareness and related outreach activities; and compliance monitoring. Increases the monetary risk associated with loans that go into default by reducing a guaranty agency's reimbursement for loans in default from 98 percent to 95 percent. Decreases a guaranty agency's share of collections on loans in default from 27 percent to 24 percent until September 30, 2003 when it drops to 23 percent. Continues the requirement of a minimum reserve level to be maintained in the Federal Fund. Requires a management plan for an agency at 85 percent reinsurance. Sets the loan issuance fee at 0.65 percent of the total principal amount of loans originated through September 3i, 2003, and reduces the fee to 0.4 percent after October 1, 2003. Provides for a loan maintenance fee from Section 458 funds of 0.12 percent in FY 1999 and 2000, and 0.10 percent in FY 2001-2003. Authorizes a one percent default aversion fee to be paid for delinquent loans that do not become defaults. Interest Rates for New Loans other than PLUS and Consolidation Loans Establishes the applicable interest rates for new loans until July 1, 2003. The new rate for students will be the equivalent of the 91 - day Treasury bill + 1.7% while the student is in school and 91 - day Treasury bill + 2.3% while the student is in repayment. The new rate for lenders will be the equivalent of the 91 - day Treasury bill + 2.2% while the student is in school and the equivalent of the 91 - day Treasury bill + 2.8% while the borrower is in repayment. Requires the Secretary to determine the applicable interest rate after consultation with the Secretary of Treasury and publish such rate in the Federal Register. Section 428: Federal Payments to Reduce Student interest Costs: Requires the student to provide a statement to the lender from the institution with respect to the eligibility and loan amount, and a schedule for disbursement of such loan. Authorizes the school to determine a student's amount of need for a loan based on the student's estimated cost of attendance, estimated financial assistance, and the expected family contributions. Clarifies that the cost of attendance is determined under Part F. Excludes Montgomery GI benefits from estimated financial assistance for purposes of subsidized loan eligibility. Eliminates the current first year proration calculation and bases the maximum loan amount on the same ratio calculation used for all students. Sets the rate of insurance for lenders at 98 percent of unpaid principal. Stipulates that a borrower receiving unemployment benefits does not have to file additional supporting documentation to receive loan deferment benefits. Exempts lenders with loan portfolios of less than $5 million from having to submit annual compliance audits to the Department. Allows lenders to determine in-school deferment eligibility for a student based on a request for deferment, receipt of a new loan documenting deferment eligibility or based on student status information received via the student status confirmation process, and requires that the lender notify the borrower regarding the student's current status and repayment options. Prohibits guaranty agencies from sending unsolicited loan applications to postsecondary students or their parents unless the student has previously received a loan guaranteed by the guaranty agency. Allows the guaranty agency to provide the same kind of assistance to institutions of higher education that is provided by the Department of Education. Excludes active duty military service from the grace period for up to three years. Limits such exclusion for active duty periods of more than 30 days. Prohibits guaranty agencies from charging a fee to a postsecondary institution that requests information on its former students that are in the process of defaulting on their student loans. Eliminates the requirement that forbearance requests must be written. Allows lenders to grant forbearance for 60 days upon request from the borrower for deferment, forbearance, a change in repayment plan, or request to consolidate loans. Permits the Secretary to terminate a guaranty agency after notice and opportunity for a hearing on the record. Revises the Secretary's authority to provide advances for lender-of-last resort and allows the Secretary to designate another guaranty agency for a state if the Secretary determines that the designated guaranty agency does not have the capability to provide lender-of-last-resort loans to eligible borrowers. Eliminates the requirement that the Secretary take at least 10 percent of the borrowers in default on FFEL loans and place them in income contingent repayment. Eliminates the provision that requires States to pay for the share of default costs for the institutions located within the State. Requires lenders to provide the borrower information on the availability of income-sensitive repayment options. Creates a new extended repayment option for new borrowers who accumulate $30,000 in loans. Section 428B -- Federal PLUS Loans: Allows the Secretary to establish additional eligibility criteria for obtaining PLUS loans in addition to adverse credit history after consultation with the financial aid community. Requires verification of immigration status and Social Security numbers for parents borrowing PLUS loans, the same verification as required. for students. Establishes interest rates for PLUS loans at the 91 -Day Treasury Bill + 3.1 percent. Section 428C - Federal Consolidation Loans: Adds a requirement that an eligible borrower for a consolidation loan must not be subject to a judgment, secured through litigation related to a student loan, or to an order of wage garnishment. Adds a provision clarifying the eligibility of loans for consolidation as follows: Permitting students who obtain an eligible student loan after receiving the consolidation loan, to receive a subsequent consolidation loan; Loans received prior to the date of the consolidation loan may be added during the 180 day period following the making of a consolidation loan; Loans received following the making of the consolidation loan may be added during the 180 day period following the making of the consolidation loan; and Loans received prior to the date of the first consolidation loan may be added with loans in a subsequent consolidation loan. Allows students with FFEL consolidation loans to maintain all the interest subsidy benefits applicable to the subsidized loans included as part of the consolidation. Establishes the interest rate for FFEL consolidation loans at the weighted average of the combined loans rounded to the nearest i/8th. of one percent, capped at 8.25 percent. Section 428G -- Requirements for Disbursements of Student Loans: Eliminates the .30-day delayed disbursement requirement and the multiple disbursement requirement for periods of no more than one semester, quarter, or four months for institutions with cohort default rates under iO percent for three consecutive years. Section 428H -- Unsubsidized Stafford Loans for Middle-income Borrowers: Eliminates the current first year proration calculation and bases the maximum loan amount on the ratio of the student's program length to the academic year. Clarifies that the maximum aggregate amount for independent, unsubsidized loans does not include interest capitalized from an in-school period. Allows lenders to grant forbearance for 60 days upon receipt of a request from the borrower for deferment, forbearance, change in repayment plan, or request to consolidate loans. Section 432 -- Legal Powers and Responsibilities: Extends the authority of the Comptroller General and inspector General to permit the audit of eligible lenders. Clarifies that the Secretary must prescribe common application forms and promissory notes, or master promissory notes for both the FFEL and Direct loan programs. Requires the Secretary to develop and use, in consultation with representatives involved in student financial assistance, master promissory note forms for loans made under FFEL and Direct for periods of enrollment beginning no later than July 1, 2000. Section 433 -- Student Loan information by Eligible Lenders: Requires all loan disclosures for borrowers to be in simple and understandable terms, be made available electronically, and requires each lender to provide a telephone number and if possible, an electronic address for providing additional information to each borrower. Section 435: Requires high default institutions with an unsuccessful appeal of loss of eligibility to pay all interest, special allowance, reinsurance, and other payments made or required to by paid by the Secretary on loans made during the appeal. Requires the Secretary to consider mitigating circumstances that show that a school is doing a good job in educating a large number of low-income students and exempts such schools from being removed from the student loan programs for default rates in excess of 25 percent. Defines the definition of mitigating circumstances as applied to cohort default rate appeals to include: 2/3 of students enrolled on at least a half-time basis receive a Pell grant which is greater than 1/2of the maximum grant (ensuring that these students are truly needy); For degree granting institutions, at least 70 percent of students enrolled on a fulltime basis complete the educational program within the time normally required as specified in the enrollment contract; and For a non-degree granting institution, at least 44 percent of the students enrolled on at least a half-time basis obtain an employment position for which they have been trained. Extends the eligibility of HBCUS, Tribally Controlled Colleges, and Navajo Community Colleges through July 1, 1999, and provides the Secretary with the authority to continue their eligibility for three years. Requires such institutions who exceed the default threshold to submit a default management plan to the Secretary providing reasonable assurance that the default rate will fall below such threshold by July 1, 2002, and requires evidence of such to be filed annually. Allows schools that are appealing the accuracy of their cohort default rates access to all loan servicing records used in determining defaults which were counted toward the institutions default rate for institutions in both the FFEL and Direct Student Loan programs. Requires the Secretary to discharge a student's liability on a loan if the institution fails to make a refund owed to the student. Permits the cancellation of up to $5,000 in subsidized and unsubsidized loans, made to new borrowers on or after October 1, 1998, who enter and continue in the teaching profession for five years. Requires a borrower teaching in a secondary school to teach in a subject area that is relevant to the borrower's academic major and requires the chief administrative officer of the elementary schools to certify the borrower's knowledge and teaching skills in reading, writing, and mathematics. Prohibits a borrower from receiving benefits under this section and the National and Community Service Act of i990. Authorizes the Secretary to issue regulations to carry out the provisions in this section. Creates a discretionary loan forgiveness program for students who obtain a degree in early childhood education and obtain employment in a child care facility. Part C -- Federal Work-Study Programs This Part authorizes the Work-Study program to provide Federal funds to pay students with financial need for part-time employment in community service, private or public sector, or campus-based jobs. Expands current law to allow jobs performed on campus for child care services and services to students with disabilities to qualify under the community service provisions. All other requirements applicable to the community service section must be fulfilled. Modifies the campus-based formula for Fiscal Year 2000 in order to provide more funds to institutions of higher education who joined the program after 1985 and for those who serve large numbers of low-income students by distributing new funds under a fair share formula. Requires institutions of higher education to use 7% of their Work-Study funds for community service activities beginning with Fiscal Year 2000. Expands community service opportunities by allowing Work-Study funds to be used to compensate students employed in community service for time spent traveling or in training, directly related to the community service position. Requires institutions to fund at least i project that compensates Work-Study students who are employed as reading tutors for preschool age children and children in elementary school, or in a family literacy project as part of the community service requirement. Requires that private sector employment be academically relevant to the maximum degree possible. Permits institutions, at the request of the student, to credit Work-Study funds directly to a student's account at the institution or at a bank, rather than being required to issue a check to the student. Extends the authorization for work colleges. Authorization of Appropriations: $1 billion for FY. 1999 and such sums through FY 2003. Part D -- William D. Ford Federal Direct Loan Program This Part authorizes the Federal Direct Loan program that provides loans to students directly from the Federal government. Continues the Direct Loan Program with minor changes. Establishes the same interest rates for students as in the FFEL program. Allows borrowers who apply for a consolidation loan between October 1, 1998 and January 31, 1999 to receive an interest rate of 9i -Day Treasury bill + 2.3 percent, when the student is no longer in school, unless the student only has loans made under part D. As of February 1, 1999, the rate for consolidation loans will match the FFEL program at the weighted average, rounded to the nearest 1/8 of one percent, capped at 8.25 percent. Allows the Secretary to provide interest rate reductions if the Secretary determines that such reductions will encourage on-time repayment. Such reductions may only be offered if they are cost neutral and in the best interest of the Federal government. Requires the Secretary to obtain official reports from OMB that assures the cost neutrality of providing repayment incentives. The Congress will receive a similar report from the Congressional Budget Office. Caps the annual amount of money from the administrative funds that may be paid to guaranty agencies for account maintenance fees at $177 million in FY 1999, $180 million in FY 2000, $170 million in FY 200i, $180 million in FY 2002, and $195 million in FY 2003. Stipulates that if in any single year the amount to which a guaranty agency is entitled exceeds the annual caps and the Department is unable to make appropriate payments, the guaranty agency is authorized to transfer the insufficiency from the Federal Student Loan Reserve Fund to its Agency Operating Fund. Authorizes the Secretary to sell loans and use the proceeds to offer incentives for on-time repayment by borrowers if the Secretary determines it is in the financial interest of the Federal government. Permits the cancellation of up to $5,000 n subsidized and unsubsidized loans, made to new borrowers on or after October 1 1998, for individuals who enter and continue in the teaching profession for 5 years. Extends loan forgiveness to the portion of consolidation loans that otherwise meet the requirements, and stipulates the same requirements as set forth in the Perkins Loan program for eligible schools. Loans that are in default do not qualify for loan forgiveness. Requires a borrower teaching in a secondary school to teach in a subject area that is relevant to their academic major and requires the chief administrative officer of the elementary schools to certify the borrower's knowledge and teaching skills in reading, writing, and mathematics. Prohibits a borrower from receiving benefits under this section and the National and Community service Act of 190. Authorizes the Secretary to issue regulations to carry out the provisions in this section. Part E -- Federal Perkins Loans This Part authorizes the Federal Perkins Loan program that provides funds to institutions of higher education to make available low-interest loans to undergraduate and graduate students with financial need. Inreases Perkins loan limits to $4,000 per year for undergraduate borrowers and $6,000 per year for graduate or professional students. Increases the aggregate borrowing limits to $40,000 for graduate or professional students, $20,000 for undergraduate students who have completed- their second year, and $8,000 for all other students. Modifies the campus-based formula for Fiscal Year 2000 in order to provide more funds to institutions of higher education who joined the program after 1985 and for those who serve large numbers of low-income students by distributing new funds under a fair share formula. Extends deferment or loan forgiveness for which a borrower is eligible to all of his or her loans, regardless of the deferment or forgiveness criteria listed on each individual promissory note. Beginning in FY 2000, provides that institutions with a cohort default rate equal to or above 25 percent will receive no Federal capital contribution for that year and eliminates any institution from the Perkins Loan program if they have a cohort default rate in excess of 50 percent for the three most recent years. Schools that lose eligibility must return Federal Perkins loan capital to the Secretary for reallocation to other eligible institutions. Permits the Secretary to waive the loss of eligibility if the institution can demonstrate an error in the default rate calculation, or there are a small number of borrowers entering repayment. Allows institutions to forgo a Department of Education prescribed default management plan if the institution has fewer than 100 borrowers. Modifies the criteria for calculating the cohort default rate to exclude loans where the borrower has voluntarily made six consecutive payments, payments to sufficiently bring the loan current, loans paid in full, loans that have been rehabilitated or canceled, loans where the borrower received a deferment or forbearance, and loans that the Secretary determines to be excluded from the calculation. Permits institutions of higher education to offer students incentive repayment programs designed to reduce defaults and to encourage good repayment behavior. Such programs are subject to the approval of the Secretary. Part F -- Need Analysis Modifies the income protection allowances, which is the amount of income that is excluded in determining a student's need for financial aid, so as not to penalize students who work, and provides for adjusting amounts for inflation: 1)Single independent students and married independent students with no dependents and both enrolled in college will have their income protection allowance increased to $5000. 2)Married independent students with a spouse not enrolled in college will have their income protection allowance increased to $8000. 3)Working dependent students will have an income protection allowance of $2200. Allows for computer rental or purchase in personal expenses as part of the allowable expenses under the cost of attendance. Changes current law to exclude parents attending college from the number of family members in college calculation, but permits the Financial Aid Officer the discretion that parents can be counted, if appropriate. Reduces the amount of a student's expected contribution from income, when the income of the parents is lower than standard expense allowances and the analysis yields a negative available parent income. This insures that need analysis is sensitive to the poorest of poor, especially dependant students who are the primary wage earners for their families. However, in no case would the expected family contribution be less than zero. Clarifies current law by prorating student's contribution from income for periods of enrollment that are less than nine months. Clarifies current law which gives financial aid officers the ability to adjust the expected family contribution for matters such as elementary and secondary school expenses, unexpected medical expenses, dislocated workers, and displaced homemakers. Permits institutions to refuse to certify a loan on a case-by-case basis. Part G -- General Provisions This Part authorizes the General Provisions that apply to all of Title IV student assistance programs. Section 482: Master Calendar: Requires notification to institutions, guaranty agencies, lenders, interested software providers, and other interested parties upon request, by December 1 prior to the start of an award year of minimal hardware and software requirements. Requires the Secretary to attempt to provide training activities in an expeditious and timely manner prior to the start of each award year. Moves the date to November 1 prior to the start of the award year for the publication of final regulations to be effective during that award year, and permits the Secretary to allow entities to choose to implement regulations prior to the effective date for regulations published after November 1. Section 483: Forms and Regulations: Requires that the common form be used to determine need and eligibility for all programs under Parts A through E, except for SSIG, and requires the Secretary to include data on the form to assist States in awarding State financial assistance and that the number of data elements be no less than a number contained on the form as of the date of enactment. Section 484: Permits the Secretary to include a space on the financial assistance form for the social security number and birth date of the parents of dependent students. Clarifies the eligibility of home-school graduates for Title IV assistance. Instructs the Secretary of Education and the Secretary of the Treasury to work together to verify income data reported by applicants for student aid. Limits a students eligibility for Title IV assistance if convicted of any offense under any Federal or State law involving the possession or sale of a controlled substance. These limitations for assistance are as follows: One year for the first conviction on a drug possession offense, two years for the second conviction, and indefinitely for the third conviction; Two years for the first conVIction for the sake of a controlled substance and indefinitely for the second conVIction. A student whose eligibility has been suspended would resume eligibility prior to the designated time if the student satisfactorily completes a drug rehabilitation program that complies with criteria prescribed by the Secretary or the conVIction is reversed, set aside, or otherwise rendered nugatory. Section 465: State Court Judgments: Permits a judgement of a State court for recovery of Title lV money that has been assigned to the Secretary to be registered in any district court and provides that it has the same force and effect as a judgement of the district court of the district in which the judgment is registered. Section 484B: Institutional Refunds: Limits refund requirements to the return of Title IV assistance. Establishes a pro-rata refund up to 60 percent of the period. Protects grant recipients who receive cash disbursements by limiting refunds to 50 percent of grant aid disbursed to students. Section 485: Information for Students: Requires schools to provide information about the institution and financial assistance available to all current and prospective students via appropriate publications, mailings, and electronic media by July 1 each year. Clarifies that schools, at their option, may provide information on completion and graduation rates of students who transfer into, and rates at which students transfer out of the institution. Clarifies that exit counseling may be provided via electronic means. Requires the Secretary to provide information on State and other prepaid tuition and savings programs, and to update the Department's internet site to include direct links to databases containing information on public and private financial aid programs. Modifies the distribution requirement that schools provide information on students receiving athletically related aid to prospective student athletes' parents, guidance counselors, and coaches by allowing the NCAA to distribute graduation rate information to all U.S. secondary schools by July 1 of each year. Section 485(f): Campus Crime Disclosure: Renames the subsection as the "Jeanne Cleary Disclosure of Campus Security Policy and Campus Crime Statistics Act". Expands the list of crimes reported to include manslaughter and arson. Requires statistics to be reported by category of prejudice on crimes that manifest evidence of prejudice based on race, gender, religion, sexual orientation, ethnicity, or disability. Requires institutions of higher education that maintain a security office to keep daily logs of crimes reported and to make such logs available to the public within two business days, except where prohibited by law or where it would jeopardize the confidentiality of the victim. Permits institutions to withhold crime information when doing so would jeopardize an ongoing criminal investigation or safety of an individual, cause a suspect to flee or evade detection, or result in the destruction of evidence. Requires institutions to make such information available within two business days when such reasons no longer exist. Expands the reporting requirements in order to capture information with respect to crimes that occur in close proximity to the campus. Allows the Secretary to impose a fine on institutions that deliberately misrepresent their crime statistics. Section 485B: National Student Loan Data System: Requires the Secretary to provide the use of the National Student Loan Data System by borrowers to identify the current loan holders and servicers of their loans one year after enactment of the HEA amendments. Section 487: Deletes the requirement that institutions submit information relating to administrative capability and financial responsibility to State postsecondary review entities. Requires schools that participate in the Direct loan program to disclose information about State grant assistance to borrowers, and submit default management plans with their initial participation applications to participate in the Direct loan program. With respect to default management plans, provides for exceptions in the case of an institution where neither the parent nor subordinate institution has a default rate in excess of 10 percent, and the new owner of such parent or subordinate institution does not, nor has not, owned any other institution with a default rate in excess of 10 percent. Requires institutions to make a good faith effort to make voter registration forms available to students enrolled and in attendance in a degree or certificate program. Schools must request such forms from the State 150 days prior to the deadline for registering to vote, and specifically prohibits any officer of the executive branch from regulating the manner in which institutions carry out these provisions. Allows, at the Secretary's discretion, U.S. institutions that receive less than $200,000 in Title IV funds and provides a letter of credit for not less than half of the potential liability to have satisfied the annual audit requirements by submitting an audit every three years. Section 487A: Quality Assurance: Renames the heading to "Regulatory Relief and improvement". Quality Assurance Programs: The conference agreement allows the Secretary to select institutions for voluntary participation in a Quality Assurance program in which schools develop and implement their own comprehensive systems relating to data verification, including the development of systems for processing and disbursing student aid, and entrance and exit interviews. Authorizes the Secretary to waive regulatory requirements dealing with reporting or verification and to substitute other reporting to ensure accountability. Requires that participation be based on demonstrated institutional performance and other goals as determined by the Secretary and requires the Secretary to ensure representation by institutions according to size, mission, and geographical distribution. Grants the Secretary the authority to remove institutions from participation. Requires the Secretary to submit recommendations to Congress, based on the evaluation of the Quality Assurance program, regarding amendments to this Act that will streamline and enhance the integrity of the Federal student assistance programs. Requires the Secretary to submit to Congress a report on the experience of institutions participating as experimental sites between 1993 and 1998, and make recommendations for amendments to improve and streamline the Act, based on the results of the experiments. Allows the Secretary to select new institutions to participate as experimental sites after the report is submitted to Congress, and permits the continuation of experimental sites currently in existence to the extent in which they are not inconsistent with the new provisions. Requires the Secretary to consult with Congress prior to approving any experimental sites. The Secretary must provide a list of institutions, statutory waivers, objectives of the experiment, and the time period for conducting the experiment. Authorizes the Secretary to waive statutory provisions, excluding award rules, award maximums, and need analysis. Distance Education Demonstration Programs: The conference agreement establishes demonstration programs strictly monitored by the Department of Education to test the quality and viability of expanded distance education programs that are currently restricted under the Act. Authorizes the Secretary to select institutions or consortia of institutions for participation in the program and waive statutory or regulatory requirements relating to computer costs, weeks of instruction, percentage of courses offered via telecommunications, percentage of students enrolled in such courses, and eligibility requirements. Limits participation to Title IV eligible institutions and prohibits foreign schools from participation. Western Governor's University: The conference agreement authorizes the participation of the Western Governor's University in the demonstration program and permits the Secretary to waive provisions of the Act except for Title IV, Parts A, B, C, E, and F. Authorizes the Secretary to select up to i5 projects for the first year and an additional 35 projects in the third year based on evaluations of the original projects. Requires the Secretary in selecting participating institutions to take into account factors including the number and quality of applications received, the ability of the Department of Education to oversee participants, the financial responsibility and administrative capability, the distance education programs offered, and the size, mission, and geographical distribution. Requires notification to the public and Congress of the institutions or consortia participating, and the statutory and regulatory requirements being waived. Requires the Secretary to evaluate the demonstration programs on an annual basis to review the extent to which goals of participating institutions have been met, the numbers and types of students participating in the programs being offered, including the progress of students toward recognized certificates or degrees, and issues related to student financial assistance. The evaluation is also to review the effective technologies for delivering distance education course offerings, statutory and regulatory requirements not waived that hinder these programs, and policies that impeded the development and use of distance education. Requires a report to Congress within 18 months and annual reports thereafter, and requires the Secretary to issue an additional annual report on the number and types of students pursuing a certificate through distance education programs, the progress of such students, and the extent to which participation in such programs has increased. Requires the Secretary to assure compliance by institutions participating in the distance education demonstration programs with the statutory requirements not authorized to be waived, to provide technical assistance, to monitor fluctuations in student enrollment, and to consult with appropriate State authorities and accrediting agencies, or associations. Section 488A: Garnishment of Borrower's Wages: Maintains current law regarding the amount of a borrower's wages that can be garnished and provides that Title IV assistance shall not be subject to garnishment or attachment except for a debt owed to the Secretary. Section 49OA: Administrative Subpoena Authority: Grants the Secretary the authority to issue administrative subpoenas. Section 491: Advisory Committee on Student Financial Assistance: Specifies that the advisory Committee has independent control over staffing levels. Clarifies that documents, including reports and publications in electronic form, are not subject to Secretarial review. Prohibits Federal employees from serving as members of the Advisory Committee, allows for the appointment of one full-time equivalent, nonpermanent consultant, and prohibits the Secretary from requiring the Committee to reduce personnel to meet the Departments personnel goals. Permits members of the Committee to receive reimbursement for travel expenses. Authorizes $800,000 for the administration of the Committee. Requires the Committee to monitor and evaluate the modernization of student financial aid systems and the delivery processes and implementation of a performance-based organization within the Department and asses dissemination methods. Requires the Committee to make recommendations regarding the use of technology in the delivery and management of financial assistance, assess the implications of distance learning on student eligibility and other requirements for financial assistance under the Act, and make recommendations regarding redundant or outdated regulations and provisions of the Act. Authorizes the Committee through 2004. Section 492: Regional Meeting and Negotiated Rulemaking Extends the requirements to all regulations developed under Title IV. Requires the Secretary to obtain advice and recommendations from others involved in student financial assistance programs. Allows for meetings and electronic exchanges as a means for the Secretary to obtain advice and recommendations, and drops current law language requiring the Secretary to take into account information received through the process and the summary publication requirement. Instructs the Secretary to select participants in the negotiation process from individuals and representatives of the groups involved in student financial assistance programs. Requires a transcript of the negotiated rule making process to be made available to the public. Creates a new Section: Year 2000 Requirements at the Department of Education This new section requires the Secretary to take the necessary actions to ensure that all internal and external systems, hardware, and data exchange infrastructure administered by the Department for the processing, delivery, and administration of the programs under Title IV, Parts B, D, E, & F are in year 2000 compliance by March 31, 1999. Requires the Department to report to Congress on its progress and the Secretary must inform Congress as soon as possible if the Department will not meet the compliance deadline. Part H -- Program Integrity Eliminates language authorizing the State Postsecondary review Entities (SPREs). These entities are currently unfunded. Renames subpart 1 as "State Role" and sets forth State responsibilities related to institutions of higher education and requires each institution to proved evidence that it has the authority to operate in a state at the time of certification. Requires accreditors to include distance education programs when assessing quality. Deletes the requirement for accreditors to have a standard to assess tuition and fees in relation to subject matter and the reference to clock hours or credit hours as part of the assessment of program length. Allows accrediting bodies to make unannounced visits of potential, problem schools. Accreditors would not be required to make unannounced visits to every school. Grants the Secretary the option of allowing an accrediting agency to take appropriate steps to correct problems within a twelve-month timeframe in lieu of termination. Requires the Secretary to determine the scope of recognition for an accrediting agency. if distance education is included, the scope shall include accreditation of institutions offering distance education courses. Maintains the current requirement that the Secretary maintain information associated with the accreditation process and make public the reason for denying accreditation to any agency. Requires an institution to maintain a copy of any contract between the institution and a financial aid service provider or loan servicer, and provide a copy of any such contract to the Secretary upon request, instead of requiring that the institution supply the copy with its application to participate in the student aid programs. Allows institutions to decide which loan programs it wishes to participate in under Parts B and D of Title IV. For the purpose of determining financial responsibility, requires the Secretary to take into account- differences in accounting principles applicable to for-profit, public, and nonprofit institutions. Adds a new provision assessing an additional penalty commensurate with the penalty applicable to nonpayment of taxes in instances where an individual exercising substantial control of an institution willfully fails to pay a refund amount owed to a student or borrowers. Permits site visits for certification or recertification purposes to be permissive, rather than mandatory, requires the Secretary to coordinate site visits with other entities, and eliminates the Secretary's authority to charge fees to cover expenses for site visits. Requires the Secretary to notify institutions six months prior to the expiration of their eligibility to participate in Title IV programs. Requires the Secretary to publish regulations for recertification for institutions outside the US that have received less than $500,00 in Part B loan funds in the most recent fiscal year. Allows the Secretary to grant provisional certification to an institution seeking approval for a change of ownership based on the preliminary review of a materially complete application and to extend that status on a month-by-month basis as necessary. Clarifies that a branch campus must be in existence for two years after Secretarial certification as a branch before the branch can seek certification as a main or freestanding campus. Requires the Secretary to prioritize when selecting institutions for program reviews. Criteria includes significant fluctuations in student loan volume or Pell Grant awards, reports to the Secretary of deficiencies by either the State or the institution's accrediting body, and indications of high dropout rates. The Secretary may also prioritize reviews based on other factors. Maintains current law requiring the establishment of guidelines designed to ensure uniformity of practice in the conduct of program reviews, and requires the Secretary to make copies of all review guidelines and procedures available to all participating institutions. Requires the Secretary to permit institutions to correct administrative, accounting, or record keeping errors which are not part of a pattern, and not fraudulent, and requires the Secretary to base any civil penalty stemming from audit or program reVIew on the gravity of the violation. Requires the Secretary to notify the appropriate State and accrediting agency when taking action against institutions. Creates a new Section 498B: Regulatory Studies. The conference agreement adds a new section to require the Secretary of Education to periodically undertake a thorough review of regulations regarding student financial assistance in order to allow for: their simplification through repeal or consolidation where appropriate; their uniform interpretation and application; the establishment of a process for ensuring that. eligibility and compliance are reviewed simultaneously to relieve burdens placed on institutions; and a determination of the extent to which unnecessary costs may be placed on an institution due to their compliance with industrial or commercial regulation. Requires the Secretary to review and evaluate methods for reducing or streamlining the regulatory burden on small institutions which receive less than $200,000 per year from Title IV programs. Requires the Secretary to periodically report his findings to the appropriate Committees of Congress, along with a timetable for implementing recommended changes and a description of any proposed legislative changes that might be necessary. Title V - Hispanic-Serving institutions (HSIs) This Title authorizes competitive grants to institutions that serve an enrollment of at least 25 percent Hispanic students of which 50 percent of those students must be from low-income families. Institutions receiving aid under this Title are authorized to use such funds for the same purposes currently allowed for these institutions under Title 11I. Expands the list of authorized activities to include construction and maintenance needs, telecommunications programs, distance learning, teacher education, community outreach programs, and improving and expanding graduate opportunities for their students. Includes the same endowment and matching fund requirements as Title III. Authorization of Appropriations: $62.5 million for FY 1999. Title VI - International Education Title VI maintains a separate Title under the Act for international Education programs and authorizes the current international education programs. The international education programs are designed to help meet the nation's need for expertise in international and foreign language studies, and business and international education programs. These programs are designed to provide a coordinated approach to strengthening international education. The international programs receive an appropriation of $54 million divided among 9 programs supporting domestic and overseas programs. Part A -- International and Foreign Language Studies Reauthorizes (with amendments) current programs supporting Graduate and Undergraduate Language Area Studies Centers, Foreign Language and Area Studies fellowships, Fellowships for Advanced Graduate Study, Language Resource Centers, and Undergraduate international Studies and Foreign Language programs. Creates a new Section 607, Technological innovation and Cooperation for Foreign information Access, which authorizes the Secretary to make grants to institutions to use new electronic technologies to collect and distribute information on world regions and countries. Repeals intensive Summer Language institutes and the Foreign Periodicals Program, both of which have not been funded since 1993. Authorization of Appropriations: $80 million for FY 1999 and such sums through FY 2003. Part B -- Business and international Education Programs Reauthorizes Centers for international Business Education and the Business and international Education Training program, which are designed to promote linkages between institutions of higher education and the American business community engaged in international economic activities, and to try to enhance academic programs assisting the business community to expand its capacity. Authorization of Appropriations: $18 million for FY 1999 and such sums through FY 2003. Part C -- Institute for International Public Policy Reauthorizes the institute for international Public Policy to make grants to consortia of institutions of higher education that serve a high number of minority students, institutions with nationally recognized programs for training foreign service professionals, and HBCUS. Authorizes the institute to conduct a summer abroad program, in addition to the current junior year abroad and postbaccalaurate internship programs assisted by an interagency Committee on Minority Careers in international Affairs Authorization of Appropriations: $ 10 million for the Institute for FY 1999 and such sums through FY 2003. Part D -- General Provisions Adds a new definition of the term "educational programs abroad" as used in this Title. Repeals Section 632, Preservation of Pre-1992 Programs. The elimination of this provision will give the Department of Education more flexibility in directing funds to those programs, which meet the changing needs in international education. By repealing this section, more new programs will be eligible for funding under this Title. Title VII - Graduate and Postsecondary Improvement Programs Part A -- Graduate Education Subpart 1 -- Jacob K. JaVIts Fellowship Program The conference agreement reauthorizes the Javits Fellowship program for competitive grants for graduate study in the arts, humanities, and social sciences. Grants are awarded based on financial need and merit, and the Secretary may contract for program administration. Authorization of Appropriations: $30 million for FY 1999 and such sums through FY 2003. Subpart 2 -- Graduate Assistance in Areas of National Need (GAANN) The conference agreement reauthorizes the Graduate Assistance in Areas of National Need program which provides funding to academic departments and programs that provide courses of study leading to a graduate degree and requires a 25 percent match of Federal funds. Applications will be evaluated based on the quality and effectiveness of the academic program and the promise of the students. Grants will now be awarded based on financial need and merit. - Authorization of Appropriations: $35 million for FY 1999 and such sums through FY 2003. Subpart 3 - Thurgood Marshall The conference agreement authorizes the Thurgood Marshall Legal Education Opportunity program to provide low-income, minority, or disadvantaged college students with information, preparation, and financial assistance to gain access to and complete law school. The Secretary is authorized to contract for program administration. Authorization of Appropriations: $5 million for FY 1999 through FY 2003. Subpart 4 -- General Provisions Provides for a coordinated approach to administering and regulating the programs in Subparts 1 through 3. Sets forth hiring flexibility for program administration, requires the evaluation of the successfulness of the programs, and requires that students receiving awards under the JaVIts and GAAN programs receive continuation awards before the Secretary may fund new recipients. Part B -- Fund for the improvement of Postsecondary Education (FIPSE) The Fund for the Improvement of Postsecondary Education (FIPSE) supports exemplary, locally developed projects that encourage innovative reform and improvement of postsecondary education. Small discretionary grants or contracts of up to three years in duration are awarded competitively to institutions of higher education and other public and private non-profit institutions and agencies. Authorization of Appropriations: $30 million for FY 1999 and such sums through FY 2003. Part C -- Urban Community Service The conference agreement reauthorizes the Urban Community Service program which provides discretionary grants for up to five years to encourage urban universities or consortia of such institutions to serve as sources of skills, talents, and knowledge to help urban areas solve local problems. Authorization of Appropriations: $20 million for FY 1999 and such sums through FY 2003. Part D -- Higher Education Access for Students with Disabilities The conference agreement authorizes the Secretary on a competitive basis to award grants to or enter into contracts or cooperative agreements with institutions of higher education to develop test and disseminate methods, techniques, and procedures to effectively serve students with disabilities. Awards made under this Part are for a period of three years. Authorization of Appropriations: $10 million for FY 1999 and such sums through FY 2003. Title VIII - Studies, Reports, and Related Programs Part A -- Studies and Reports Section: Study of Market Mechanisms in Federal Student Loan Programs Requires the Congressional Budget Office in conjunction with the Secretary of Education to convene a study group of individuals with expertise in finance and student lending. The purpose of this group is to identify and evaluate at least three models to increase market forces within the Federal student loan programs while ensuring the continued availability of student loans to all eligible borrowers. The study group is required to make its preliminary report available for public comment no later than November 15, 2000. The group's final report is due not later than May 15, 2001. Section: Student-Related Debt Study Requires the Secretary of Education to analyze the distribution and increases in student related debt as it relates to factors such as demographic characteristics of the student, type of institution, and field of study. The Secretary is also required to analyze the effect of actual or anticipated debt on students choice of institution, time to matriculation, pursuit of graduate education, employment decisions, and future earnings. The Secretary is to report his findings to the appropriate Committees of Congress within 18 months of the date of enactment. The Secretary is also directed to provide any information which he deems useful to students or families in conjunction with the cost information provided under Title I. Section: Study of Transfer of Credits Requires the Secretary to evaluate policies or practices implemented by accrediting bodies regarding the transfer of academic credits between institutions. Specifically, the Secretary is to look at transfer of credit policies among institutions accredited by different accrediting bodies and the effect of such policies on students transferring among such institutions including: increases in their time to matriculate; increases in tuition and fees paid; and increases in student loan burdens. In addition, the Secretary is to evaluate the cost of such policies to the taxpayer due to the awarding of Federal financial aid for duplicative coursework. The Secretary is to report his findings to the appropriate Committees of Congress within one year of the date of enactment. Section: Requires the National Center for Education Statistics to conduct a national study of expenditures at institutions of higher education. Specifically, in the areas of construction, technology, and the potential costs of replacing instructional buildings and equipment. Section: Study of Opportunities for Participation in Athletic Programs Requires the Comptroller General to conduct a study of the opportunities for participation in intercollegiate athletics. Specifically, the Comptroller is to look at the last 20 years and determine: the extent to which the number of secondary school teams has increased or decreased; the extent to which participation by students in secondary school and intercollegiate sports has increased or decreased; which sports have had participation increase or decrease most dramatically; which factors have caused increases or decreases; how any changes have impacted student athletes; and the budget impact on institutions of any changes. The Comptroller General is to report his findings to the appropriate Committees of Congress. Section: Study of the Effectiveness of Cohort Default Rates for institutions with Few Student Loan Borrowers Requires the Secretary to study the effectiveness of cohort default rates as an indicator of administrative capacity and program quality for institutions at which fewer than 15 percent of eligible students borrow under Title IV, and at which fewer than 30 borrowers enter repayment in any given year. Among the topics to be studied are an identification of institutions in this category and the types of students they serve, an analysis of cohort default rates as an indicator of program quality and as a means to prevent fraud and abuse, an analysis of the extent to which institutions with high cohort default rates have been eliminated from the Federal loan programs, and a cost-benefit analysis of the calculation of cohort default rates. The Secretary is to report his findings to the appropriate Committees of Congress not later than September 30, 1999. Part B -- Advanced Placement incentive Program This Part authorizes and renames the Advanced Placement Fee Payment Program as the "Advanced Placement incentive Program". This program provides grants to States to reimburse low-income individuals to cover part or all of the cost of advanced placement test fees for low-income individuals enrolled in advanced placement classes who are planning to take such tests. Requires the Secretary to consider the number of eligible low-income students in the State compared to the number of low-income students in all States in determining grant award amounts. Permits a State education agency to use excess grant funds for increasing the enrollment of low-income individuals in advanced placement courses, the participation of low-income individuals in advanced placement tests, and the availability of advanced placement courses in schools serving high-poverty areas when no eligible low-income individual is required to pay more than the nominal fee to take such tests in core subjects. Requires that grant funds must supplement and not supplant other non-Federal funds that are to assist low-income individuals in paying advanced placement test fees. Requires the Secretary to annually report the number of low-income individuals in the State who receive assistance, and the extent that funds are used to increase the participation of low-income individuals in advanced placement courses through teacher training and other activities. Authorization of Appropriations: $6.8 million for FY 1999 and such sums through FY 2003. Part C -- Community Scholarship Mobilization This Part creates a new competitive grant program to allow recipients to establish endowments and to use the interest earnings to create and support State, regional, or community program centers. These centers are changed with fostering the development of local affiliated chapters in high poverty areas that promote higher education goals for students from low-income families by providing academic support and postsecondary scholarship assistance. Authorization of Appropriations: $10 million for FY 2000. Part D -- Grants to States for Workplace and Community Transition Training for Incarcerated Youth Offenders This Part authorizes a program to provide grants to State correctional education agencies to assist and encourage incarcerated youth to acquire functional literacy, life, and job skills through the pursuit of postsecondary education. Grant funds may also be used to provide employment counseling and related services during incarceration, continuing through pre-release and parole, and permits students under the age of 25 who are eligible to be released from prison within five years to participate. Authorization of Appropriations: $14 million for FY 1999 and such sums through FY 2003. Part E -- Grants to Combat Violent Crimes Against Women on Campuses This Part authorizes a new competitive grant program to be administered by the Department of Justice to combat violent crimes against women on college campuses. Authorizes the Attorney General to make grants to institutions of higher education or a consortia of campus personnel and organizations to develop and strengthen effective security and investigation strategies and develop and strengthen victim services in conjunction with local law enforcement and community-based service agencies. Requires the Attorney General to report to Congress on the number and amount of grants awarded, the purpose of those grants, a statistical summary of the persons served detailing the nature of victimization, data on age, sex, race, ethnicity, language, disability, relationship to offender, geographic distribution, and type of campus. Requires institutions receiving grants to file a performance report with the Attorney General explaining the activities carried out and the effectiveness of such activities. Funding is suspended for failure to submit this report. Requires the Attorney General, in consultation with the Secretary of Education, to conduct a national study examining procedures undertaken after an institution receives a report of sexual assault and other policies and procedures, and submit a report to Congress by September 1, 1999. Authorizes $1 million for FY 1999 to carryout such study. Authorization of Appropriations: $10 million for FY 1999 and such sums through FY 2003. Part F - Improving United States Understanding of Science, Engineering, and Technology in East Asia. This Part authorizes the Director of the National Science Foundation, in consultation with the Secretary of Education, to administer an interdisciplinary program of education and research on East Asian science, engineering, and technology. Authorization of Appropriations: $ 10 million for FY 2000. Part G -- Olympic Scholarships The conference agreement authorizes the Secretary to provide financial assistance to the United States Olympic Education Center or United States Olympic Training Center to enable these centers to provide financial assistance to the athletes who are training at such centers and are pursuing a postsecondary education. Authorization of Appropriations: $5 million for FY 1999 and such sums through FY 2003. Part H -- Underground Railroad Educational and Cultural Program This Part authorizes a program to allow the Secretary of Education, in consultation with the Secretary of interior, to award grants to nonprofit educational organizations to research, display, interpret and collect artifacts relating to the history of the Underground Railroad and make interpretive efforts available to institutions of higher education. Authorization of Appropriations: $6 million for FY 1999-2000 and $3 million for FY 2002-2003. Part I -- Web-Based Education Commission This Part authorizes the establishment of Web-based Commission to assess the educational software available in retail markets for secondary and postsecondary students, submit a report to the President and Congress about its findings, and make recommendations for legislative and administrative actions. Authorization of Appropriations: $450,000 for FY 1999. Part J -- Miscellaneous Provisions Section: Merchandise Licensing This Section provides for a Sense of Congress stating that all institutions of higher education should adopt rigorous educational merchandise licensing codes of conduct to assure that colleges' and universities' licensed merchandise is not made by sweatshops and exploited adult child or labor either domestically or abroad. Section: Good Character Sense of Congress This Section provides for a Sense of Congress stating that Congress should support and encourage character building initiatives in schools across American and urges colleges and universities to affirm that the development character is one of the primary goals of higher education. Title IX - Amendments to Other Acts Part A -- Indian Education Programs Section: Tribally Controlled Community College Assistance Act of 1978 This Section reauthorizes the Tribally Controlled Community College Assistance Act to ensure continued and expanded educational opportunities for Indian students. Changes the name of the Act to the "Tribally Controlled College or University Assistance Act". Increases the per-Indian pupil authorization to $6,000. Authorization of Appropriations: $40 million for FY 1999 and such sums through FY 2003. Section: Navajo Community College Act This Section reauthorizes the Navajo Community College Act for five years to assist the Navajo Tribe Indians in providing education to the members of the tribe through a community college. Part B -- Education of the Deaf This Part provides for the reauthorization of the Education of the Deaf Act. The Education of the Deaf Act authorizes Gallaudet University in Washington, D.C. and the National institute for the Deaf (NTID) in Rochester, NY. Gallaudet University, a four-year liberal arts college for the deaf, enrolls slightly less than 2, 000 students. The House has proposed an appropriation of $83.5 million for FY 1999. NTID, a two-year technical institute located at the Rochester institute of Technology (FJT) currently enrolls over 1,000. The House has proposed an appropriation of $44.8 million for FY 1999. Clarifies that a dismissal of a child that is the result of a suspension, expulsion, or other disciplinary action is not covered under the 60-day notice requirement. Clarifies existing law to require that non-Federal matching funds be received in the same fiscal year as the appropriate Federal payment and strikes the current $2 for $1 matching requirement when annual non-Federal contributions exceed $1 million. Repeals a scholarship program that provided scholarships to deaf individuals to enter teacher training programs in deaf education or special education. This program is unfunded. Increases the enrollment cap on international students to 15 percent and increases the international student surcharge to 100, percent and ensures that no qualified U.S. student will be denied admission due to the enrollment of international students. Requires Gallaudet and NTID to establish and disseminate priorities for their national mission with respect to deafness related research, development, and demonstration activities. Requires the Secretary to conduct a national study on the education of the deaf to identify education related barriers and factors that contribute to successful postsecondary education experiences and employment for individuals who are deaf, and report to Congress its findings. Authorizes $1 million to be appropriated for FY 1999 and 2000. Part C -- United States institute of Peace This Part authorizes the United States institute of Peace that was established in 1984 to strengthen our capacity to promote peaceful resolution of international conflicts. Permits the institute to enter into personal service contracts for hiring experts needed to respond to short-term projects that do not demand the allocation of permanent staff and reaffirms the institute's ability to utilize government rates for travel, supplies, and services. Part D -- Voluntary Retirement incentive Plans The conference agreement amends Section 4 of the Age Discrimination in Employment Act to permit institutions of higher education to offer tenured faculty voluntary early retirement incentive plans that are in part age-based. Tenured faculty who choose to participate would receive additional benefits in exchange for retiring early. These additional benefits may be reduced based on the age at which the faculty member opts to retire. However, in no case can the faculty member's base retirement package be reduced. Participation in these plans would be strictly voluntary. Part E -- GEPA This Part amends the General Education Provisions Act to: Permit institutions of higher education to disclose disciplinary records of students who have admitted or been found guilty of a crime of violence where the records directly relate to such misconduct. Permit institutions of higher education to disclose to parents or legal guardians of a student under the age of 21 years information regarding the violation of any Federal, State, or local law, institution disciplinary rule or policy regarding the use or possession of alcohol or a controlled substance. Part F -- Department of Education Organization Act The conference agreement amends the Department of Education Organization Act to establish a Liaison for Proprietary institutions of Higher Education within the Department of Education appointed by the Secretary. This person will serve as the principal advisor to the Secretary on matters affecting proprietary schools, and provide guidance to programs within the Department involving functions affecting proprietary schools. This person will also work with the Federal interagency Committee on Education to improve the coordination of outreach programs in Federal departments and agencies that administer education and job training programs, collaborative business and education partnerships, and education programs located in, and involving rural areas.