H2510 CONGRESSIONAL RECORD — HOUSE April 29, 1998 NAYS—8 Caucus, I offer a privileged resolution bill shall be considered for amendment under Conyers Martinez Paul (H. Res. 412) and ask for its immediate the five-minute rule. It shall be in order to Frank (MA) Nadler Sanders consideration. consider as an original bill for the purpose of Kucinich Oberstar amendment under the five-minute rule the The Clerk read the resolution, as fol- amendment in the nature of a substitute rec- NOT VOTING—11 lows: ommended by the Committee on Education Barr Gephardt Schumer HOUSE RESOLUTION 412 and the Workforce now printed in the bill, Bateman Gonzalez Smith (OR) Resolved, That the following named Mem- modified by the amendments printed in part Brown (CA) Meek (FL) Wise 1 of the report of the Committee on Rules ac- Dixon Sandlin ber be, and is hereby, elected to the follow- companying this resolution. That amend- b ing standing committees of the House of 1848 Representatives: ment in the nature of a substitute shall be So the bill was passed. To the Committee on Banking and Finan- considered by title rather than by section. Each title shall be considered as read. All cial Services: BARBARA LEE of California. The result of the vote was announced points of order against that amendment in To the Committee on Science: BARBARA as above recorded. the nature of a substitute are waived. Before LEE of California. A motion to reconsider was laid on consideration of any other amendment it the table. The resolution was agreed to. shall be in order to consider the amendment f A motion to reconsider was laid on printed in part 2 of the report of the Com- the table. mittee on Rules, if offered by Representative PERSONAL EXPLANATION Goodling or his designee. That amendment f Mr. WISE. Mr. Speaker, because I was pick- shall be considered as read, shall be debat- ing my children up from school I was unable REPORT ON RESOLUTION PROVID- able for 20 minutes equally divided and con- to get back to the capitol to vote on H.R. trolled by the proponent and an opponent, ING FOR CONSIDERATION OF S. shall not be subject to amendment, and shall 3546, the National Dialogue on Social Security 1502, DISTRICT OF COLUMBIA not be subject to a demand for division of the Act. STUDENT OPPORTUNITY SCHOL- question in the House or in the Committee of I ask that the RECORD reflect that had I ARSHIP ACT OF 1997 the Whole. All points of order against that been here I would have supported the motion amendment are waived. If that amendment Mr. HASTINGS of Washington, from to recommit. I also ask that the RECORD reflect is adopted, the provisions of the amendment that had I been here I would have supported the Committee on Rules, submitted a in the nature of a substitute as then per- final passage of this measure and voted privileged report (Rept. No. 105–501) on fected shall be considered as original text for ``aye.'' the resolution (H. Res. 413) providing the purpose of further amendment. No other amendment to the amendment in the nature f for consideration of the Senate bill (S. 1502) entitled the ‘‘District of Columbia of a substitute shall be in order except those REMOVAL OF NAME OF MEMBER Student Opportunity Scholarship Act printed in the portion of the Congressional AS COSPONSOR OF H.R. 3605 Record designated for that purpose in clause of 1997’’, which was referred to the 6 of rule XXIII. Printed amendments shall be Mr. BASS. Mr. Speaker, I ask unani- House Calendar and ordered to be considered as read. The chairman of the mous consent to have my name re- printed. Committee of the Whole may: (1) postpone moved as a cosponsor of H.R. 3605. f until a time during further consideration in The SPEAKER pro tempore (Mr. the Committee of the Whole a request for a SNOWBARGER). Is there objection to the REPORT ON RESOLUTION WAIVING recorded vote on any amendment; and (2) re- request of the gentleman from New REQUIREMENT OF CLAUSE 4(b) duce to five minutes the minimum time for OF RULE XI WITH RESPECT TO electronic voting on any postponed question Hampshire? that follows another electronic vote without There was no objection. SAME DAY CONSIDERATION OF intervening business: Provided, That the min- f CERTAIN RESOLUTIONS imum time for electronic voting on the first in any series of questions shall be 15 min- REMOVAL OF NAME OF MEMBER Mr. HASTINGS of Washington, from the Committee on Rules, submitted a utes. At the conclusion of consideration of AS COSPONSOR OF H.R. 3605 the bill for amendment the Committee shall privileged report (Rept. No. 105–502) on Mr. GILCHREST. Mr. Speaker, I ask rise and report the bill to the House with unanimous consent to have my name the resolution (H. Res. 414) waiving a such amendments as may have been adopted. removed as a cosponsor of H.R. 3605. requirement of clause 4(b) of rule XI Any Member may demand a separate vote in The SPEAKER pro tempore. Is there with respect to consideration of certain the House on any amendment adopted in the objection to the request of the gen- resolutions reported from the Commit- Committee of the Whole to the bill or to the amendment in the nature of a substitute ul- tleman from Maryland? tee on Rules, which was referred to the House Calendar and ordered to be timately considered as original text. The There was no objection. previous question shall be considered as or- f printed. dered on the bill and amendments thereto to f RESIGNATION AS MEMBER OF final passage without intervening motion ex- cept one motion to recommit with or with- COMMITTEE ON BANKING AND HIGHER EDUCATION AMENDMENTS out instructions. FINANCIAL SERVICES OF 1998 The SPEAKER pro tempore. The gen- The SPEAKER pro tempore laid be- Mr. HASTINGS of Washington. Mr. tleman from Washington (Mr. fore the House the following resigna- Speaker, by direction of the Commit- HASTINGS) is recognized for 1 hour. tion as a member of the Committee on tee on Rules, I call up House Resolu- Mr. HASTINGS of Washington. Mr. Banking and Financial Services: tion 411 and ask for its immediate con- Speaker, for the purposes of debate HOUSE OF REPRESENTATIVES, sideration. only, I yield the customary 30 minutes Washington, DC, April 29, 1998. The Clerk read the resolution, as fol- to the gentleman from Ohio (Mr. Hon. NEWT GINGRICH, lows: HALL), pending which I yield myself Speaker, U.S. House of Representatives. such time as I may consume. During DEAR MR. SPEAKER: I am writing to inform H. RES. 411 you that I am resigning from the Committee Resolved, That at any time after the adop- consideration of this resolution, all on Banking and Financial Services. tion of this resolution the Speaker may, pur- time yielded is for the purposes of de- Sincerely, suant to clause 1(b) of rule XXIII, declare the bate only. ESTEBAN E. TORRES, House resolved into the Committee of the (Mr. HASTINGS of Washington asked Member of Congress. Whole House on the State of the Union for and was given permission to revise and The SPEAKER pro tempore. Without consideration of the bill (H.R. 6) to extend extend his remarks.) objection, the resignation is accepted. the authorization of programs under the Mr. HASTINGS of Washington. Mr. There was no objection. Higher Education Act of 1965, and for other Speaker, H.Res. 411 is a modified open purposes. The first reading of the bill shall f rule waiving all points of order against be dispensed with. All points of order against consideration of the bill. The bill pro- ELECTION OF MEMBER TO CER- consideration of the bill are waived. General debate shall be confined to the bill and shall vides 1 hour of general debate to be di- TAIN STANDING COMMITTEES OF vided equally between the chairman THE HOUSE not exceed one hour equally divided and con- trolled by the chairman and ranking minor- and ranking minority member of the Mr. FAZIO of California. Mr. Speak- ity member of the Committee on Education Committee on Education and the er, at the direction of the Democratic and the Workforce. After general debate the Workforce. April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2511 The rule also provides that the It also expands flexibility in the Pell the chairman and the ranking minority amendment in the nature of a sub- Grant program that provides vouchers member of the Committee on Edu- stitute recommended by the Commit- to needy students, by permitting a cation and the Workforce. tee on Education and the Workforce larger portion of the grant to be used The rule makes in order only those now printed in the bill, as modified by for purposes other than tuition, such as amendments that have been preprinted the amendments printed in part 1 of child care for parents attending class- in the CONGRESSIONAL RECORD. These the report of the Committee on Rules, es. amendments will be permitted under shall be considered as an original bill Mr. Speaker, encouraging students the 5-minute rule, the normal amend- for the purpose of amendment. and their parents to work and save for ing process in the House. The rule does Furthermore, Mr. Speaker, the rule educational expenses is a priority in permit germane amendments to those provides that the amendment in the this Congress. Accordingly, H.R. 6 in- preprinted amendments. nature of a substitute shall be consid- creases the amount of income students The bill continues and revises Fed- ered by title and that each title shall may earn before it impacts their eligi- eral student loans, Pell grants and be considered as read. All points of bility for financial aid. The bill also ex- other higher education programs. Fed- order are waived against the amend- empts veterans’ benefits from being eral grants, loans and college work ment in the nature of a substitute. counted against students when they study awards have made the dream of The rule provides that before consid- apply for financial aid. higher education a reality for millions eration of any other amendment, it Incredibly, Mr. Speaker, the current of young people. These programs are shall be in order to consider the man- financial aid formula treats the assets essential to bring the opportunity for ager’s amendment printed in part 2 of of students and their parents dif- higher education to all Americans. the report of the Committee on Rules, ferently and separately, as though they This bill makes a number of important if offered by the gentleman from Penn- are not part of the same family. H.R. 6 changes to the programs intended to sylvania (Mr. GOODLING) or his des- changes this provision by combining make college affordable, simplify the ignee. the assets of the student and his or her student aid system and promote aca- All points of order against that parents when calculating the total demic quality. amendment are also waived, it shall be ability of the family to contribute to- Mr. Speaker, It is a bipartisan bill. It considered as read, and shall be debat- wards college expenses. has strong support from both sides of able for 20 minutes equally divided and Finally, this legislation contains a the aisle. The Committee on Education controlled by the proponent and an op- number of administrative changes de- and the Workforce reported the bill ponent. It shall not be subject to signed to streamline aid to education with all Democrats who were present amendment and shall not be subject to and eliminate bureaucratic red tape. In supporting it. a demand for division of the question that regard, H.R. 6 can truly be de- During testimony last night before in the House or in the Committee of scribed as a good deal for taxpayers as the Committee on Rules, the gen- the Whole. well as a good deal for students. tleman from Missouri (Mr. CLAY) the If that amendment is adopted, the I commend the Committee on Edu- ranking minority member of the com- provisions of that amendment in the cation and the Workforce, and in par- mittee, and the gentleman from Michi- nature of a substitute as then perfected ticular the gentleman from Pennsyl- gan (Mr. KILDEE) the ranking minority shall be considered as original text for vania (Mr. GOODLING), the gentleman member of the subcommittee, re- the purpose of further amendment. from California (Mr. MCKEON), the gen- quested a full and open rule. The Com- Mr. Speaker, H.Res. 411 provides that tleman from Missouri (Mr. CLAY) and mittee on Rules denied the request, in- no other amendment to the amend- the gentleman from Michigan (Mr. KIL- stead requiring all floor amendments ment in the nature of a substitute shall DEE) for their efforts in bringing this to be preprinted in the CONGRESSIONAL be in order except those printed in the important legislation to the floor. The RECORD. Even though the minority’s CONGRESSIONAL RECORD. rule before the House today is designed request was not fully granted, the rule The rule allows the Chairman of the to provide full and fair consideration of will provide opportunity for Members Committee of the Whole to postpone the committee’s work product, while to amend the bill on the House floor. votes during consideration of the bill limiting the opportunity for Members Moreover, the bill is the result of a bi- and to reduce votes to 5 minutes on a desiring merely to score political partisan process. postponed question if the vote follows a points with this bipartisan legislation. Mr. Speaker, the Committee on Rules 15-minute vote. Mr. Speaker, the quality of our high- approved this modified open rule by a Finally, the rule provides one motion er education system in the United voice vote, and I would urge adoption to recommit, with or without instruc- States has long been the envy of the of the rule. tions. entire world. At the same time, access Mr. Speaker, I reserve the balance of Mr. Speaker, H.R. 6, the Higher Edu- to higher education for all deserving my time. cation Amendments of 1998, reauthor- young people has been one of the driv- Mr. HASTINGS of Washington. Mr. izes existing programs that provide ing forces behind two centuries of inno- Speaker, I yield 4 minutes to the gen- Federal aid to students. It is designed vation and economic growth. tleman from Tennessee (Mr. DUNCAN). to help to make college more afford- I urge my colleagues to continue this Mr. DUNCAN. Mr. Speaker, I rise in able, simplify the student aid system tradition by putting America’s stu- support of the rule and for the underly- and improve academic quality. Most dents and their education first and ing bill, H.R. 6, which this rule brings importantly, Mr. Speaker, this legisla- adopting both this rule and H.R. 6, the to the floor, the Higher Education tion will ensure that all Americans Higher Education Amendments of 1998. Amendments of 1998. wishing to pursue a higher education Mr. Speaker, I reserve the balance of I especially want to thank my good will continue to have that opportunity. my time. friend, the gentleman from Washington First and foremost, H.R. 6 safeguards (Mr. HASTINGS) for yielding me this b the student loan program by ensuring 1900 time; and also I would like to thank that student loans will remain avail- Mr. HALL of Ohio. Mr. Speaker, I the chairman, the gentleman from able for all students and that students yield myself such time as I may con- Pennsylvania (Mr. GOODLING) for in- will receive the lowest interest rates in sume. cluding provisions in the bill in H.R. 6 17 years. Mr. Speaker, I want to thank my col- which are similar to my bill, H.R. 715, Moreover, once this bill is enacted league from Washington (Mr. the Accuracy in Campus Crime Report- into law, deserving students from dis- HASTINGS) for yielding me the time. ing Act. advantaged backgrounds will have This is a modified open rule. It will I would briefly like to discuss H.R. more Federal support to attend college allow debate on H.R. 6, which is the 715, much of which has been incor- than ever before. H.R. 6 improves cam- Higher Education Amendment of 1998. porated into H.R. 6. pus-based aid programs such as Work As my colleague has described, this This legislation, H.R. 715, currently Study, Supplemental Educational Op- rule provides 1 hour of general debate has 71 cosponsors almost equally split portunity Grants, and Perkins Loans. to be equally divided and controlled by between both parties. H.R. 715 is a H2512 CONGRESSIONAL RECORD — HOUSE April 29, 1998 genuinely bipartisan bill. No college or While I would have liked to have seen the entry will be $2.8 billion minus $700 university that has a safe campus more provisions from H.R. 715 included million equals $2.1 billion. And if as of should have any problems with the in H.R. 6, I believe that the provisions September 30 of this year we have not campus security provisions in H.R. 6, that are included will go a long way in cleared that from the score card, it will but for those institutions that do have improving the public’s awareness of the trigger sequestration. It will mean crime problems, students and their par- dangers that, unfortunately, lurk on across-the-board cuts in a host of pro- ents should have a right to know about some of our college campuses. I appre- grams, including educational pro- these dangers before they enroll. ciate the cooperation of the gentleman grams, voc rehab. Ironically, it will in- I became concerned about this issue from Pennsylvania (Mr. GOODLING) in crease student loan origination fees. after meeting with several families this regard, and I urge support for H.R. Now I am not criticizing the group whose children had been murdered on 6. here that put this together. I am criti- college campuses. These families never Mr. HALL of Ohio. Mr. Speaker, I cizing the way the House is run. We dreamed that they should have to yield 4 minutes to the gentleman from should have had well before now a worry about the physical safety of South Carolina (Mr. SPRATT). budget resolution. We have a process their children on college campuses. (Mr. SPRATT asked and was given by which these decisions are not made The issue of campus crime last at- permission to revise and extend his re- one by one, piecemeal. They are made tracted the interest of many in the na- marks.) in a comprehensive context where we tional media in the past year. Both Mr. SPRATT. Mr. Speaker, I thank have to identify the offsets, identify CBS and ABC have devoted extensive the gentleman for yielding me the the tradeoffs. When we want to in- time to this problem. Several leading time. crease one thing, we have got to de- publications have also covered this Mr. Speaker, I support student loans, crease something else. We have not story. In fact, both the New Republic and I support the kind of compromise done that. and USA Today have favorably written that has been reached in this bill, but The most egregious violation of it about my legislation, H.R. 715. as the ranking democrat on the Com- was the BESTEA bill, the transpor- After reading many of these articles mittee on the Budget I have to raise tation bill that we had on the floor just and hearing these reports, it became concerns about this bill because I do a few weeks ago. That particular bill painfully obvious to me that many col- not think it complies with the Budget will increase spending by $35 billion leges are doing a poor job in giving stu- Act, and I think those concerns should over and above what we provided in the dents and their parents an accurate be expressed. BBA. This is just another illustration picture of the dangers that lurk on For the first time in 30 years, we of what happens when we do not have a some college campuses. have got a balanced budget this year, budget agreement, when we do not On February 9, USA Today strongly and we have got a balanced budget in have a budget resolution. endorsed H.R. 715 by stating, quote, in part because of disciplines and budget The proper procedure would be to 1990, Congress passed a law requiring process changes we made in the Budget send this bill back to the committee colleges to collect annual campus Summit Agreement of 1990, the Omni- and require maybe not this group but crime statistics, but the Education De- bus Budget Reconciliation Act of 1993 some group to identify the offsets bet- partment blocked the law’s full imple- and the Balanced Budget Act last year, ter than the offsets that have been mentation by threatening to withhold 1997. identified here. I know that is not Federal funds from colleges opening One of those rules which we estab- going to happen. their police logs. When the bill comes up, I am going lished in 1990 and have carried forward USA Today then hit the nail on the to vote for it myself. But I could not in each of those years was the so-called head by concluding, quote, it is a sad let the bill come to the floor, could not pay-go rule, which simply provides state of affairs when an act of Congress let it be considered in this manner, that any time anyone wants to liberal- is necessary for the Education Depart- could not let this routine incantation ize or add to an entitlement the cost of ment to protect student safety. that all points of order are waived be it must be paid for either by identify- I think, Mr. Speaker, that most of us made without raising the concern of look fondly on our college days, from ing a revenue stream to pay for it or by the Committee on the Budget, my own the appealing image of ivy-lined brick reducing an entitlement somewhere personal concern that we are deviating buildings, the excitement of interact- else in the budget. from the disciplines that have brought When the rule was read, the gen- ing with professors and, of course, us to a balanced budget for the first making new friends who last for a life- tleman noted that all points of order time in 30 years, and we are going to time. At least, that is what my col- are raised. The reason all points of have a real pileup in September unless leagues and I probably remember. order have to be raised as to the Budg- we get under way with the budget reso- However, in the 1990s, unfortunately, et Act is that this particular bill in- lution in the process that we duly the reality is far different. On many creases direct spending for student adopted. campuses, rapes, robberies and even loans by $2.8 billion, according to the Mr. HASTINGS of Washington. Mr. Office of Management and Budget, over murders are becoming far too common. Speaker, I yield 21⁄2 minutes to the gen- Students now have reason to fear for and above what was provided in the tleman from Pennsylvania (Mr. GOOD- their safety on some campuses. balanced budget agreement last year. LING) the chairman of the Committee Mr. Speaker, I am very pleased that In effect, what we have done here is on Education and the Workforce. H.R. 6 contains campus security provi- lower the rates the students will pay, Mr. GOODLING. Mr. Speaker, I sions that are modeled on H.R. 715. The and that is good, I am for that, and thank the gentleman for yielding the campus security provisions of H.R. 6 raise to some extent what the banks time to me. require colleges and universities to will realize for these loans. We have in- First, I would like to say that I wish maintain a daily log of all crimes com- creased the spread over and above what the previous speaker would have been mitted and make those logs available was anticipated for the next 5 years, sitting on our committee when we were for public inspection within 48 hours. and the cost is $2.8 billion, according to marking up. I sure could have used Many States already require colleges OMB. him. Because we had amendment after and universities to make their police Now what does this mean? We have amendment after amendment, and logs public. These provisions in H.R. 6 waived points of order. The bill cannot every time I asked where is the offset, are a matter of fairness to those insti- be withheld. I know the calamity it they said there was not any. Now, for- tutions which are making good-faith would cause if it were withheld because tunately, we were able to defeat them efforts to inform the public of the dan- students are making decisions about in a bipartisan way, but, otherwise, we gers on their campuses. The need for how they will pay for college right had a serious problem. accurate police logs is crucial so that now. I think it is important to point out accurate crime statistics can be com- But what this means is that we will that we have asked the lending institu- piled. The public must be able to make have an entry on something called the tions to reduce yields by 30 basis points informed decisions about where to at- pay-go score card. There is about $700 that they would normally expect to re- tend college. million in scored offsets to this bill so ceive, so it is not a situation where April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2513 somebody came and gave them more. Board for Professional Teaching Stand- which will be designated so that the We asked them to reduce yields by 30 ards was eliminated during markup of Social Security number cannot be used points, and we did that to bring about the bill. for the electronic personal identifier an agreement with the students. And b 1915 for any of the programs in this edu- for the gentleman from California (Mr. cational bill. MCKEON) and the gentleman from I have talked to some of the staff of The American people have become Michigan (Mr. KILDEE) I will not be so the committee on our side, and that very worried about how often the So- informal. They worked for a year and a was not our intent, and my understand- cial Security number is being used as a half to bring about this agreement be- ing is we are not supportive of that, al- national identification number, and we tween the students and the lending in- though it is a small component of a are working quickly toward a time stitutions. large bill. where we have a national identification The scoring has been a problem. As education is one of our Nation’s card. We certainly have abused the So- There is no question about it. At one highest priorities, Mr. Speaker, we cial Security number as being the num- point, they were told that we have need to focus on improving the quality ber. It was never intended that way. about $4 billion to $6 billion in savings. of the teachers in our schools. National That is not what was intended when We were really swimming in good board certification is, in my opinion, the Social Security was started that water. We had all sorts of money to an important way to achieve this goal. this number would be a universal num- spend. Next time they scored it, they Both the President and a bipartisan ber for everything. used a different scoring method, and all group of our Nation’s Governors sup- In 1974, it was stated rather explic- of a sudden we are a billion dollars port the good work that the national itly that the Social Security number short. board is doing to improve the quality should not be used for programs like I would also tell the previous gen- of our teachers. this, and I would like to just quote the tleman we have come up with at least Recently, Mr. Speaker, the Maryland Privacy Act of 1974: ‘‘It shall be unlaw- half of that, and I believe that the Legislature passed a bill creating a ful for any Federal, State or local gov- Committee on the Budget is able to pilot program to encourage up to 45 ernment agency to deny any individual come up with the other half. teachers to seek national board certifi- any right, benefit or privilege provided So, again, it has been a very difficult cation. In the city of Bowie, Maryland, by law because of such individual’s re- thing, but we know that we must have just down the road, the City Council fusal to disclose his Social Security it on the President’s desk by May 15, approved a $20,000 set-aside in its 1997– number.’’ unless my colleagues want to have 1998 budget for initiatives to enhance I think this is a good idea, because total, a total disaster. We will have the teaching skills and instructional today we are very much aware of the parents, we will have students, we will environment in Bowie schools, includ- fact that if a company, if a loaning company, or if one is going into a store have schools sitting out there wonder- ing national board certification. to buy something, and they get one’s ing are their loans? When will we find Mr. Speaker, as President Clinton name and one’s Social Security num- out? said last Friday, and I quote, now is no So we just positively have to move time to walk away from our commit- ber, one knows that they can call up the legislation, and I cannot give the ment to public education. The National more information about somebody than they know about themselves. I two congressmen I mentioned enough Board for Professional Teaching Stand- think this is a serious threat to the credit for the amount of hours that ards, the President said, should not be privacy of every American citizen, and they have spent and the staffs have a partisan issue, it should not be an we should be cautious about using the spent to bring together the students ideological issue, it ought to be purely Social Security number. It is being and the lending institutions. and simply what we can do to help you used all the time. Above all, the students do not want do what is best for our children and Mr. Speaker, prior to coming to this to see their opportunity taken away their future, close quote. Mr. Speaker, as I said, I will support Congress, I was an obstetrician deliver- from them simply because we in the ing babies, and babies cannot leave the this bill, but I am very, very hopeful Congress cannot come up with an hospital these days without a Social that the National Board for Profes- agreement that will save the private Security number. So they are born, get sional Teaching Standards is included sector as far as their ability to provide a Social Security number, they do not in the Senate bill and will be included 70 percent of all Federal student loans. leave the hospital without it, and do in the conference. I will be talking to So I would hope that we can eliminate my colleagues know that one cannot my good friend, the gentleman from an awful lot of the amendments that have a death certificate without a So- Missouri (Mr. CLAY), the chairman-in- are coming up because that could real- cial Security number? They are every- exile of this committee, and the gen- ly drive us up the wall and then we will place. It is an intrusion on our privacy. tleman from Pennsylvania (Mr. GOOD- really have a scoring problem and, at We do not need to use a Social Security the same time, get this legislation to LING), chairman of this committee, in number. the President quickly. working toward that end. When I was in the Air Force, we used Mr. HALL of Ohio. Mr. Speaker, I I think this is a critical component to have an identification number, but yield 3 minutes to the gentleman from of our overall effort to upgrade the sta- now, today, it is the Social Security Maryland (Mr. HOYER). tus of teaching, and, therefore, the number. Not too many years ago a law Mr. HOYER. Mr. Speaker, I thank quality of education in our schools. I was passed here in the Congress that the gentleman for yielding this time to would hope that we could come to an mandates that each State licensing me, my friend from Ohio. agreement between the two bodies on agent for our automobile says that one Mr. Speaker, I rise today in support this, and I look forward to working to- has to have a Social Security number. of this rule and in support of this bill. ward that end. So now they will be cross-checking However, I must say that I share the Mr. HASTINGS of Washington. Mr. with Social Security number and all of views of the gentleman from South Speaker, I yield 3 minutes to the gen- our driver’s license numbers. Carolina (Mr. SPRATT) the ranking tleman from Texas (Mr. PAUL). We are losing our privacy in this member of the Committee on the Budg- (Mr. PAUL asked and was given per- country. The American people know it. et. I think his concerns are absolutely mission to revise and extend his re- We do not need this number to be used accurate; but, like him, I will vote for marks.) in this program for it to be successful, this bill and hope that we can work out Mr. PAUL. Mr. Speaker, I thank the and we should move very cautiously, some of the problems as it goes gentleman for yielding me this time. and I hope I can get support for this through. I rise in support of this rule. It is ob- amendment so that we do not use the I am pleased that the committee was viously a very fair rule because I am Social Security number as the elec- able to work together in a bipartisan allowed to offer an amendment later tronic personal identifier. fashion to draft this bill. However, Mr. on, so I am pleased to be able to vote Mr. HALL of Ohio. Mr. Speaker, I Speaker, I am extremely concerned for this rule. I have an amendment yield 2 minutes to the gentlewoman that the authorization for the National that I am going to offer in Title I from New York (Mrs. LOWEY). H2514 CONGRESSIONAL RECORD — HOUSE April 29, 1998 (Mrs. LOWEY asked and was given cation Amendments. First I would like with the Pell Grant provision, and I permission to revise and extend her re- to thank the gentleman from New have spoken with the leadership on marks.) York (Mr. SOLOMON), chairman of the this issue. Mrs. LOWEY. Mr. Speaker, I thank Committee on Rules, for his help in The bill, as currently written, says the gentleman for yielding me this crafting this rule. Through his efforts that students from the Micronesian Is- time. and those on the committee, we have lands, the Republic of the Marshall Is- Mr. Speaker, I rise to offer my strong been able to bring this bill to the floor lands, and the Republic of Palau and support for this rule and the bipartisan in a timely and expeditious manner. He the Federated States of Micronesia are amendments to the Higher Education definitely will be missed when he re- not eligible for Pell Grants except if Act. Education is society’s great equal- tires. they go to institutions in those areas izer. It enables Americans to partici- This rule will govern floor consider- and Guam only. I feel very strongly pate in democracy and pursue the ation of H.R. 6, which is one of the that this is a violation of the compacts American dream. most important education bills that of free association and will attempt to We all recognize that a college edu- this Congress will consider this year. limit educational opportunities for cation is as necessary today as a high As many of my colleagues know, we these people. school education was just a generation are facing a July 1 deadline that cre- The FAS territories of the Pacific is- ago. In 1982, a worker with a college de- ates a crisis in the student loan pro- lands was an American-administered gree earned 40 percent more than a gram. H.R. 6 contains a bipartisan area of the Pacific under which some worker without one. Today, college compromise that fixes the problem, compacts were arranged in order to graduates earn 75 percent more. maintains the viability of the private help to facilitate the growth of these A recent national survey showed that loan program, and provides students areas, and for one reason or another, 9 in 10 Americans believe every inter- with the lowest interest rate in 17 H.R. 6 does not take this into account. ested qualified student should have the years. I trust that we can work towards a ver- opportunity to attend college. My col- So through the swift adoption of this sion of the bill on this particular provi- leagues, that is a clear mandate for a rule and passage of H.R. 6, we will sion which will restore the benefits of strong higher education bill, and I be- move one step closer to meeting that Pell Grants for the Micronesian stu- lieve such a measure is before us today. Just briefly, it increases Pell Grants deadline. Therefore, I urge all of my dents not only in Guam, and not only by 50 percent next year and provides colleagues to support the rule and vote on their own home islands, but additional increases in the future. It in favor of H.R. 6, the Higher Edu- throughout the 50 States. preserves the Perkins Loan, the State cation Amendments of 1998. Again, Mr. Speaker, this bill deserves Mr. HALL of Ohio. Mr. Speaker, I Student Incentive Grant, the Supple- our support. It is a good bill, and it is yield 3 minutes to the gentleman from mental Education Opportunity Grant a bill that is the work of very strong Guam (Mr. UNDERWOOD). programs, all important sources of fi- bipartisan support and a good and Mr. UNDERWOOD. Mr. Speaker, I nancial aid. It will encourage more dis- healthy understanding of the role of thank my friend from Ohio for yielding advantaged students to pursue higher postsecondary institutions in our soci- me this time. education by strengthening TRIO, con- ety. I rise in support of the rule on H.R. 6. Mr. HASTINGS of Washington. Mr. tinuing my National Early Interven- I know that many of the members of Speaker, I yield 2 minutes to the gen- tion Scholarships, and establishing a this committee have worked hard on tlewoman from New Jersey (Mrs. ROU- new High Hopes program that will producing a bill which will increase the KEMA). work with low-income middle schools affordability for our institutions of (Mrs. ROUKEMA asked and was and community organizations. higher education and advance social The new campus-based child care pro- given permission to revise and extend mobility in our country. As a retired gram will help young mothers attend her remarks.) educator and higher education admin- Mrs. ROUKEMA. Mr. Speaker, I college and become self-sufficient. The istrator, we know that institutions of thank the gentleman for yielding me new loan forgiveness program will help higher education advance knowledge, this time. fill America’s growing need for quali- provide community service, and serve Mr. Speaker, I rise in strong support fied teachers. The bill will also help as the basis for social and economic of both the rule and the bill. I think make college campuses safer and pro- mobility for millions of our young peo- this bill is one of the most significant vide students and their families with ple who come from backgrounds with bills that we will probably pass in this the information they need and deserve few social advantages and economic re- Congress, and these are the issues that about crime on campus. Of course, this bill is not perfect. It sources. count with the American people, with- Higher education institutions in our ends Federal support for the fine work out a doubt. country are marked by their capacity of the National Board of Professional To be competitive in the global econ- to provide this opportunity which is Teaching Standards and fails to in- omy, we need to provide our youth vastly different than institutions in clude, as the Senate bill does, a Fair with the means to better their edu- other countries. Higher education is Play Act to encourage colleges to sat- cation. This is the essence of the Amer- the strength of our society and the en- isfy the interests and needs of young ican dream. gine of progress and opportunity, and Now, I know that there are going to female athletes. However, despite some deficiencies, this bill, as written, continues and be amendments during this process, this is a strong bipartisan bill, and I ratifies this understanding of post- and I do believe that there will be con- urge my colleagues to support it. secondary institutions and deserves structive colloquies and constructive Mr. HASTINGS of Washington. Mr. our support. dialogue and debates on those amend- Speaker, how much time remains on Mr. Speaker, I would like to draw at- ments, but this bill is fundamentally a each side? tention to the especially unique provi- very strong bill. The SPEAKER pro tempore (Mr. sions that it has on Hispanic-serving I do want to point out that one of the GUTKNECHT). The gentleman from institutions and the work of the gen- issues that has been questioned is the Washington (Mr. HASTINGS) has 141⁄2 tleman from Texas (Mr. HINOJOSA) in resolution here of the potential crisis minutes, and the gentleman from Ohio that regard. I would also like to draw of the interest rate issue on this bill. (Mr. HALL) has 181⁄2 minutes. attention to a provision which allows The proposal in this legislation, I be- Mr. HASTINGS of Washington. Mr. higher education institutions in the lieve, is the best that we could have Speaker, I yield 2 minutes to the gen- territories to compete for grants with a come up with, and it will help students tleman from California (Mr. MCKEON). little bit more flexibility. I would like while saving the program for higher Mr. McKEON. Mr. Speaker, I thank to really draw attention to the fact education through the private banking the gentleman for yielding me this that it is making higher education af- system. time. fordable for millions of young people Now, I am one of the longtime mem- I rise in strong support of this rule around the country, and the increase in bers of the Subcommittee on Post- and the bill H.R. 6, the Higher Edu- Pell Grants. I know there is a problem secondary Education, Training and April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2515 Life-Long Learning, but I have another I will vote with them to do so. But I pursuit of a higher education. The bill hat. I am the chairwoman of the Sub- also want to sound a note of caution will improve programs such as Work- committee on Financial Institutions that as we move this bill out of the Study, Pell grant, TRIO, and student and Consumer Credit, and perhaps from House of Representatives and into the loans that help millions of students that point of view I understand both conference committee, I think it is im- pay for college. sides of this issue. perative that we lay before the Mem- We will do a number of important This legislative fix, so to speak, is bers of this body and our constituents, things here today. However, none may necessary, absolutely necessary, not the American people, the specifics of be as important as our efforts to keep only to protect the loans for the stu- how much this compromise will cost student loans available for all stu- dents at reasonable low interest rates, the taxpayers and where the money is dents. As all of my colleagues know, we but also to ensure that the banks will going to come from to pay for it. have been struggling for the past year not be forced to leave the market. I believe it would be a disaster to fat- with the student loan interest rate b 1930 ten the profits of the banking industry issue that is the direct result of the at the expense of other student aid pro- Student Loan Reform Act of 1993. That I think this is the best possible com- grams or other mandatory programs. act changed the index for establishing promise that we could have reached. It We should be watching that as the time interest rates on these loans. works for the students and their fami- goes on. Prior to the Student Loan Reform lies and it works for the private sector, Mr. HASTINGS of Washington. Mr. Act, interest rates had always been the banks who provide the loans at low Speaker, I reserve the balance of my tied to 91-day Treasury bills. However, interest rates. time. as part of the changes associated with Mr. HALL of Ohio. Mr. Speaker, I Mr. HALL of Ohio. Mr. Speaker, I the creation of the Federal Direct Stu- yield 2 minutes to the gentleman from have no more speakers. I would urge a dent Loan program, the index for es- New Jersey (Mr. ANDREWS). ‘‘yes’’ vote on the rule, and I will not (Mr. ANDREWS asked and was given tablishing interest rates changed to be calling for a vote. I think it is a permission to revise and extend his re- one based on the 10-year Treasury good bipartisan rule, and I yield back marks.) bond. This scheduled rate change is se- Mr. ANDREWS. Mr. Speaker, I thank the balance of my time. rious and has the potential to disrupt Mr. HASTINGS of Washington. Mr. the gentleman from Ohio (Mr. HALL) the Federal Family Education Loan Speaker, I want to urge my colleagues for yielding me this time. Program which provides nearly 70 per- Mr. Speaker, I rise in support of the to support this rule, and the underly- cent of this country’s Federal student rule, and at a time when the people ing bill. This is clearly a product that loans. who cover politics are obsessed with is bipartisan in nature and that is As a parent I am keenly aware of the what is scandalous and divisive, we something I think we can be proud of. burden being placed on our youth by Mr. Speaker, I yield back the balance have before us tonight something that student loan debt. I am personally of my time, and I move the previous is solid and unifying. committed to ensuring that the inter- Mr. Speaker, I want to commend the question on the resolution. est rate on Federal student loans is The previous question was ordered. leaders of our committee, the gen- kept as low as possible. However, I also The resolution was agreed to. realize that there is a point at which tleman from Pennsylvania (Chairman A motion to reconsider was laid on GOODLING), the gentleman from Califor- the lenders will get out of the program. the table. That point is reached when their re- nia (Chairman MCKEON), the gentleman The SPEAKER pro tempore (Mr. turn on making these loans falls short from Missouri (Mr. CLAY) and the gen- HASTINGS of Washington). Pursuant to of the return they could make by in- tleman from Michigan (Mr. KILDEE) for House Resolution 411 and rule XXIII, all the time and effort they have put vesting elsewhere. the Chair declares the House in the Under the bill we are considering into this bill and all the very fine work Committee of the Whole House on the that they have done. today, students will receive histori- State of the Union for the consider- cally low interest rates, the lowest in I also want to commend the Commit- ation of the bill, H.R. 6. tee on Rules for putting before us a 17 years. The rates students pay on new rule that lets anyone with any idea b 1934 loans will drop from the current rate of have the right to come to the floor and IN THE COMMITTEE OF THE WHOLE 8.25 down to 7.43 during the repayment express his or her idea. That is why I Accordingly, the House resolved period. At the same time, the amount support the rule. itself into the Committee of the Whole the lenders are paid will be reduced by Mr. Speaker, I do want to associate House on the State of the Union for the 30 basis points which will, I believe, en- myself, however, with the remarks of consideration of the bill (H.R. 6) to ex- sure uninterrupted access to private the gentleman from South Carolina tend the authorization of programs capital for our Nation’s students. (Mr. SPRATT), the ranking Democratic under the Higher Education Act of 1965, The chairman of the Subcommittee member of the Committee on the Budg- and for other purposes, with Mr. GUT- on Postsecondary Education, Training et, with respect to the cost and pay- KNECHT in the chair. and Life-Long Learning, the gentleman ment mechanism for the interest rate The Clerk read the title of the bill. from California (Mr. MCKEON) and the compromise that has been referred to The CHAIRMAN. Pursuant to the ranking member of that subcommittee, earlier. rule, the bill is considered as having the gentleman from Michigan (Mr. KIL- First of all, we do not really know been read the first time. DEE) have worked very hard to find a what the cost is. We have an estimate Under the rule, the gentleman from solution to the crisis. That solution is from the Office of Management and Pennsylvania (Mr. GOODLING) and the contained in this legislation. Budget that tells us it will be net in ex- gentleman from Missouri (Mr. CLAY) Throughout this difficult process, the cess of $2 billion. We have another esti- each will control 30 minutes. gentleman from California (Chairman mate from the Congressional Budget The Chair recognizes the gentleman MCKEON) and the gentleman from Office which tells us that even with the from Pennsylvania (Mr. GOODLING). Michigan (Mr. KILDEE) never forgot the offsets that have been identified, it is Mr. GOODLING. Mr. Chairman, I interests of the students. They never in the neighborhood of half a billion yield myself 5 minutes. gave up when negotiations broke down. dollars. Mr. Chairman, I rise today in support I know that the ranking member of the It is a very serious consideration of H.R. 6, the Higher Education Amend- committee, the gentleman from Mis- that we are moving forward on this bill ments of 1998. Considering H.R. 6 today, souri (Mr. CLAY) and the rest of the without identifying where the money is the House will complete a bipartisan members of the committee are grateful going to come from. It is sort of the- process that began in the subcommit- for their efforts in resolving the issue. check-is-in-the-mail theory of budget- tee chaired by the gentleman from Mr. Chairman, I especially want to ing that got us into this mess in the California (Mr. MCKEON) well over a thank the Speaker of the House, the first place. year ago. gentleman from Georgia (Mr. GING- I agree with those who say that we This legislation will benefit millions RICH), the gentleman from Texas (Mr. should move forward this evening, and of students across the country in their ARMEY), the majority leader, as well as H2516 CONGRESSIONAL RECORD — HOUSE April 29, 1998 the gentleman from Ohio (Mr. KASICH) very careful about their ambition to although no one can guarantee safety, we are chairman of the Committee on the add all sorts of things to this legisla- making sure that students have the informa- Budget. Without their help, this solu- tion, because they could kill the won- tion they need to protect themselves from be- tion would not have been possible. All derful work that the subcommittee and coming victims of crime. We are also ensuring three contributed to ensuring that we then eventually the full committee has families have accurate information about crime could pay for this provision which is done. on college campuses so they can make in- now budget neutral without passing Mr. Chairman, we have also made signifi- formed choices when selecting a college for any of the costs on to students. cant changes to the current need analysis for- their children. Many in the higher education com- mula in order to address concerns raised by H.R. 6 also provides strong incentives for munity support the proposal and have many students and families about the need to students to stay off drugs. An amendment of- joined me in praising the gentleman encourage students to work and save for their fered by the gentleman from Indiana, Mr. from California (Chairman MCKEON) education. The bill increases the amount of SOUDER, and accepted in Committee will elimi- and the gentleman from Michigan (Mr. money that students may earn before it im- nate student aid eligibility for students con- KILDEE) for their leadership. The major pacts their eligibility for financial aid. By doing victed of drug offenses. This provision is student groups have described the pro- this, we are encouraging students to work and based on an amendment offered by Mr. SOLO- posal as, and I quote, ‘‘A realistic, fair, save for college. MON in 1992, which was accepted by the and even-handed compromise that pro- It also combines the assets of a student and House. Unfortunately, the Solomon amend- tects students’ need for lower borrower his or her parents when calculating the ability ment was later dropped in conference. If we rates.’’ The American Council on Edu- of the family to contribute towards college. want to ensure safety on our Nation's cam- cation and 10 other major higher edu- The current formula treats that assets of par- puses, it is vital to keep them drug-free. cation groups representing over 3,600 ents and students differently and separately as H.R. 6 also focuses on improving teacher colleges and universities praised the though they are not part of the same family. quality so that students will have high quality fact that the proposal ‘‘ensures the We are changing this provisions so the for- teachers trained in the subject areas in which continued availability of capital in the mula truly considers the ability of the family to they teach. It is alarming to find that nearly guaranteed student loan program.’’ pay for college. one-third of all high school math teachers and Mr. Chairman, for the people back The legislation we will consider today will over one fifth of all high school English teach- home, I hope they would notice that I also improve service to students. It addresses ers in this country have neither majored Nor am not quoting anything that the lend- the need to reduce the administrative costs minored in the subjects in which they teach. ing institutions or the lending organi- associated with the processing, delivery, and Given this fact, it should come as no surprise zations have had to say about this. Ob- monitoring of the Federal financial aid pro- that American twelfth graders recently scored viously, they are not nearly as pleased. grams. It gives the Secretary of Education the so low on the TIMMS international math and I continue to welcome the help of ev- tools he needs to bring the Department into science test. eryone who is willing to work in good the 21st Century. Under this legislation, States will be encour- faith to get the problem solved. I thank Specifically, the Department will be required aged to undertake a wide variety of efforts to those who have already shown a will- to put in place a Performance-Based Organi- improve the quality and ability of classroom ingness to seek common ground in zation (PBO) to run the day-to-day operations teachersÐbeginning with the reform of institu- order to ensure that student loans re- of the student financial aid delivery system. tions at which many of these teachers are pre- main both inexpensive and available. Chairman MCKEON and Representative KILDEE pared. But, Mr. Chairman, I am sorry to say introduced the PBO bill last fall with the full that despite the bipartisan example set support of the students and the rest of the Specifically, this bill amends the Higher by the leaders on both sides of this higher education community. I am glad to see Education Act by replacing 16 unfunded committee, there are those who would that it has been included in our final bill. teacher preparation programs with a single continue to play politics with this A more stable and more efficient delivery competitive block grant, which I'm pleased to issue. A high-ranking official at the system coupled with regulatory reform should mention, was developed through a bipartisan Department of Education recently put result in reduced administrative costs for the process within our Committee. out a press release about our bipartisan Department as well as for schools, lenders, Using funds from this competitive block solution stressing that it recognizes guaranty agencies, and other program partici- grant, Governors will have significant flexibility the ‘‘need to protect students from pants who must interact with the Department's in which activities to carry out. Specifically, banks.’’ delivery system. This is particularly important such efforts may include strengthening State Now, if there is anything that stu- since we are forcing lenders and guaranty teacher certification procedures to better re- dents need to be protected from, it is agencies to operate with less revenue and we flect current and future teacher's academic the high cost of getting an education expect colleges to keep their costs down for knowledge of the subjects they teach; reform- and the quality of service they get students. The Department needs to contribute ing schools of education and holding them ac- from the bureaucracy at the Depart- to these efforts by operating more efficiently countable for producing quality teachers; cre- ment. This bill scores high on both so others can do the same. ating and/or expanding programs which pro- counts: It helps make college more af- I'd also like to note some provisions of H.R. vide alternative routes to teacher certification; fordable and it simplifies the student 6 that were offered in Committee by Rep- undertaking teacher recruitment efforts; and aid delivery system. resentatives MCKEON and CASTLE to make col- implementing initiatives to expeditiously re- The committee is proud of the ac- lege affordable. The McKeonÐCastle amend- move incompetent or unqualified teachers. complishments made to date in making ment will implement a number of the rec- To ensure that States receiving these funds college affordable for all students. ommendations of the Commission on the Cost are making progress to improve teacher qual- Since we have been in charge, for ex- of Higher Education. This is important, be- ity, this legislation also makes future grants to ample, Pell grants and College Work- cause if we are truly interested in making sure States contingent upon meeting specific goals Study are funded at all-time highs, that all Americans can afford a quality post- such as being able to demonstrate an in- while provisions in the Taxpayer Relief secondary education, and if we are truly inter- creased percentage of teachers teaching in Act created education IRAs and other ested in reducing the debt burden placed on subject areas and an increase in ``first-time'' tax credits to help low- and middle-in- our students, then the single most important certification and licensure rates among edu- come students obtain a postsecondary thing we can do is to get colleges to lower cation school graduates. education. The legislation we are con- their prices. These provisions are a needed I would like to especially highlight several sidering today will build on these im- first step in that direction. provisions that were worked out in a bipartisan portant achievements by continuing In addition to making college more afford- fashion which are now part of the manager's the important programs that serve stu- able and simplifying the delivery system, we package of amendments. dents well and by reforming burden- have fulfilled our promise to improve the qual- They include: an increased emphasis on some requirements to best meet the ity of higher education. H.R. 6 will help create partnerships consisting of the Governor of a needs of students, families, and col- safer campuses where our nation's students participating State, exemplary schools of edu- leges across the country. can learn. It improves the information made cation and local educational agencies; an in- Mr. Chairman, I do want to caution available to students and families about creased focus, with respect to the teacher re- all of my colleagues to please be very, crimes occurring on college campuses. And cruitment provisions, on schools most in need April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2517 of quality teachers, such as in poor urban and Mr. Chairman, the bill also includes a b 1945 rural areas; and a clarification that the Gov- number of provisions aimed at improv- The gentleman from Missouri (Mr. ernor shall be the grant recipient except in ing services to students on campus CLAY), the ranking member of the com- those cases where State law or constitution such as enhanced campus crime report- mittee, and the gentleman from Michi- dictates that another individual is responsible ing, a new campus-based child care pro- gan (Mr. KILDEE), the ranking member for education. gram and streamlining financial aid of the subcommittee, also deserve a I look forward to the support of my col- procedures. great deal of thanks for all of their leagues for this compromise so that we can I am also pleased that teacher edu- dedication and hard work. For more help States really reform teacher preparation cation and recruitment received a than a year, we have worked closely to- programs and provide high quality teachers to boost in this bill by the adoption of a gether gathering representations from our students. loan forgiveness program for new around the country to improve the way I would also like to thank Representative teachers and strong teaching training we provide support for higher edu- GRAHAM for his efforts in working with Rep- partnerships. As we continue to work cation. The result is the legislation be- resentative KILDEE, in crafting a truly bipartisan on this bipartisan bill, I hope that we fore us today. initiative under this legislation which provides can continue our efforts to resolve I want to begin by noting that this loan forgiveness for prospective teachers who issues regarding loan consolidation in- legislation, including the interest rate agree to teach in high poverty urban or rural terest rates, guarantee agencies, and fix that is contained in it, is paid for. schools. the National Board for Teacher Certifi- In addition to the improvements we will In fact, without the interest rate fix, cation. make in the preparation of teachers, there are H.R. 6 saves roughly $70 million in a host of other changes that will improve edu- Finally, Mr. Chairman, I would like mandatory spending. However, due to cational quality and opportunities far beyond to express my hope that we will unani- the emergency nature of the interest the college campus. Today, the House will in- mously reject attempts to undermine rate problem, it became clear that an crease opportunities for all Americans to get this bipartisan bill through the intro- immediate fix is needed and that any the education they need through the expanded duction of a divisive anti-affirmative fix would cost money. use of distance learning techniques and new action amendment. The Riggs amend- Under H.R. 6, the interest rate fix technologies. Today we will also encourage ment has received universal condemna- was paid for in a plan developed by the students to become involved in their commu- tion among all those who care deeply leadership which required half of the nities and to help children learn to read by en- about expanding educational opportu- savings to come from the committee suring that colleges use more of the Work- nities for all Americans. Students, col- and the rest to be made up in offsets Study dollars to fund these initiatives. leges, civil rights groups, editorial supplied by the Committee on the Finally, let me just say that that the legisla- boards and women’s groups across this Budget. tion before us today is one of the most impor- country have urged us to reject this I want to personally thank Speaker tant things that we in the 105th Congress will giant leap backwards. GINGRICH, the gentleman from Texas do this year. It will ensure that every American Last night, Secretary Riley and At- (Mr. ARMEY), the majority leader, and has access to a quality postsecondary edu- torney General Reno sent an urgent the gentleman from Ohio (Mr. KASICH), cation at an affordable price. This is a biparti- message to Congress expressing their chairman of the Committee on the san bill that makes much needed reforms to strongest possible opposition to this Budget for their hard work and support help students, parents, and schools. I urge all very dangerous amendment. They for making this solution possible. of my colleagues to support it, and I urge a would urge the President to veto H.R. 6 The legislation we are considering ``yes'' vote on final passage. if the Riggs amendment is adopted. I will be one of the most important Mr. CLAY. Mr. Chairman, I yield my- hope that all Members will reject this things Congress will do for students self 5 minutes. reckless amendment that is designed to and families this year. It will bring us Mr. Chairman, I want to commend torpedo passage of the Higher Edu- closer to my goal of ensuring that the gentleman from Michigan (Mr. KIL- cation Reauthorization Act. every American who wants a quality DEE) and the gentleman from Califor- Mr. Chairman, I reserve the balance education at an affordable price will be nia (Mr. MCKEON) for their great bipar- of my time. able to get it. As my colleagues know, the commit- tisan teamwork on this very important Mr. GOODLING. Mr. Chairman, I tee began this process with no pre- higher education initiative. They yield such time as he may consume to determined changes in mind. We re- worked for better than a year to fash- the gentleman from California (Mr. ion legislation that I believe strength- quested and received recommendations MCKEON), the subcommittee chairman for change from individuals across the ens our country’s commitment to high- who did such a great job in putting this country and from more than 70 organi- er education. legislation together. I also want to commend the gen- zations representing schools, students, CKEON. Mr. Chairman, I thank tleman from Pennsylvania (Chairman Mr. M and other participants in our financial the gentleman from Pennsylvania (Mr. GOODLING) and all the committee mem- aid programs. We spent the better part GOODLING) for yielding me this time. bers who made valuable contributions of last year traveling around the coun- to the higher education reauthoriza- Mr. Chairman, I rise today in support try, holding hearings to fully under- tion effort. I am pleased to give my en- of H.R. 6, the Higher Education Amend- stand what changes are needed to bet- thusiastic support for this bill. ments of 1998. Today we are assembled ter serve our Nation’s college students. The bill strengthens student aid fi- to consider the reauthorization of the We have developed this legislation nancing by significantly reducing stu- Higher Education Act of 1965. I want to through open and bipartisan discus- dent loan interest rates, increasing thank my fellow members of the Com- sions with the higher education com- Pell Grants and improving the calcula- mittee on Education and the Workforce munity, students, parents, and our col- tions of benefits for independent and for the bipartisan way in which they leagues in the 105th Congress. dependent students. The bill adopts a have worked to get us to this point. I Throughout this process, three com- number of measures that enhance sup- especially want to thank the gen- pelling principles have guided us: mak- port for minority and disadvantaged tleman from Pennsylvania (Mr. GOOD- ing college affordable, simplifying the students by strengthening the TRIO LING), chairman of the committee, for student aid system, and stressing aca- program and other programs support- his support and leadership on this im- demic quality for students. ing historically black colleges and uni- portant legislation. We have kept true to these three versities, Hispanic-serving institutions Mr. Chairman, throughout the proc- principles throughout the process. If and tribally controlled colleges. ess he has kept us focused on the goal we continue to do so as we move for- Mr. Chairman, I am also pleased that of improving our financial aid system ward, the end result will be a new and the committee adopted President Clin- for students and parents. Whenever a improved Higher Education Act estab- ton’s High Hopes program. And I com- particularly difficult problem would lishing quality Federal student aid pol- mend the gentleman from Pennsyl- arise he would not give up. To the con- icy for the years ahead. vania (Mr. FATTAH) for his successful trary, he would confront it head on and I want to focus my remarks today on advocacy of this important initiative. forge a consensus. a few very important areas. First, the H2518 CONGRESSIONAL RECORD — HOUSE April 29, 1998 legislation before us today will sim- tiative. These are the same individuals information to keep colleges account- plify the student aid system. H.R. 6 who would have us dismantle the guar- able and higher education affordable by will eliminate 45 unfunded programs, anty agencies and turn them into con- requiring the Secretary of Education including the State Postsecondary Re- tractors for the Federal Government. to work with institutions to develop a view Entities, or SPREs, and terminate It is clear to me that this would be a clear set of standards for reporting col- 11 studies and commissions. mistake. lege costs and prices. It will bring our student financial aid Throughout the history of the FFEL Under our bill, the Secretary of Edu- delivery system into the next century. program, guaranty agencies have cation will redesign the collection of It will create a performance-based or- played a vital role in protecting the Federal base information on college ganization within the Department of Federal fiscal interest while ensuring costs and prices to make it more useful Education focused on providing quality that billions of dollars in private cap- and timely to the public. service to students and parents. ital remained available to needy stu- This legislation will allow students For the first time, the day-to-day dents. to make more informed choices about management of our student aid pro- Given the shortfalls we have seen in the level of education they pursue by grams will be in the hands of someone the Department’s contracting abilities, requiring the Secretary of Education with real-world experience and finan- shortfalls which have caused unaccept- to collect separate data on the cost and cial services. This individual will be able delays in the processing of student price of both undergraduate and grad- given the hiring and contracting flexi- financial aid forms and a complete uate education. bility necessary to get results and will shutdown of the direct loan consolida- It will help parents and students be paid based on performance. tion process, it is clear that the ap- make informed decisions about the For the first time, the Department’s proach taken in H.R. 6 is the right one. school they choose by requiring the student financial aid systems will be Second, this legislation continues Secretary of Education to make avail- run like a business, adopting the best and strengthens those programs that able for all schools on a yearly basis in- practices from the private sector and have served students well, making col- formation on tuition, price, and the re- focusing on bottom-line results. This lege more affordable. lationship between tuition increases performance-based organization will One of the biggest challenges we and increases in institutional costs. manage the Department’s computer faced during this process was saving It will also allow us to keep track of systems and ensure that the Depart- the student loan program. As my col- any progress made in reducing tuitions ment of Education does not waste leagues know, the scheduled change in by requiring the United States General money due to poor contract manage- the interest rate for student loans jeop- Accounting Office to issue a yearly re- ment or duplication. ardized access to private capital for port on college cost and tuition in- The chief operating officer hired to students. creases. Committee members faced the chal- manage this organization will simplify H.R. 6 will reduce the costs imposed lenge of finding a solution that would the process of applying for financial on colleges through unnecessary or ensure that student loans remain avail- aid for students and their families and overly burdensome Federal regulation able to all students and their families, integrate student financial aid systems by requiring the Secretary of Edu- to improve efficiency, save money, and while also ensuring that students re- cation to undertake a thorough review prevent fraud and abuse in the pro- ceive a real reduction in their interest of regulations regarding student finan- grams. rates. This was no easy task. This bill also requires the Secretary After working extensively with all cial assistance every 2 years and, where to work with the higher education parties involved, the student groups, possible, repeal, consolidate or simplify community to adopt common and open the higher education and lending com- those regulations. The Secretary will also report to electronic data standards for impor- munities and Republican and Demo- tant parts of the delivery system. By cratic members of the committee, it Congress any recommendations he has adopting these common standards, we became clear that there was a consen- with regard to legislative changes can greatly simplify the student aid sus in three key areas. which would allow increased regu- system by eliminating paper forms and First, everyone agreed that tying the latory simplification. This legislation unnecessary steps in the process. interest rate to a long-term instrument will require the General Accounting Of- Students and their families deserve a like the 10-year Treasury bond would fice to report to Congress on the extent modern student aid system that meets not work. Second, no one had any faith to which unnecessary costs are being their needs. This legislation will give that the direct loan program could pro- imposed on colleges and universities as the Secretary the tools he needs to pro- vide a viable alternative in the event a result of holding them to the same vide it. that private loan capital became un- Federal regulations that are applied in Additionally, the legislation before available. Third, as our subcommittee industrial settings. I expect colleges us rationalizes the guaranty agency hearing on March 5 showed, the inter- and universities to pass on these sav- system and makes important changes est rates for lenders proposed by the ings to students. to the incentives we give guaranty administration were too low to ensure H.R. 6 will stress our commitment to agencies. It will change the guaranty lender participation. keeping college affordable by strength- agency financing structure to give In the end, we found a solution that ening our support for innovative these entities the flexibility they need I hope fixes the interest rate problem. projects addressing issues of productiv- if we expect them to use the largest The solution contained in this legisla- ity, efficiency, quality improvement, private sector business practices, oper- tion will ensure that student loans will and cost control at postsecondary in- ate more efficiently, and ensure pro- remain available for all students and stitutions. gram integrity. that students will receive the lowest In addition, H.R. 6 allows colleges These changes will increase guaranty interest rates in 17 years. While no one and universities to offer voluntary agencies incentives to become more ef- may be completely happy with this so- early retirement incentives to tenured ficient in their operations by designat- lution, I believe it will ensure that professors. This will allow professors, ing payments for services as the prop- every student will continue to have ac- at their choosing, to receive additional erty of the guaranty agency; increase cess to student loans at the most af- retirement benefits beyond what they their financial risk with respect to de- fordable rate possible. otherwise would have, while allowing faults in order to encourage stronger Finally, H.R. 6 contains provisions colleges to approve their academic pro- default prevention efforts; restructure offered in the committee by myself and grams while reducing costs. I urge my the payments made to guaranty agen- the gentleman from Delaware (Mr. colleagues to support these provisions cies in order to maintain a strong guar- CASTLE) that implements a number of as well. anteed loan program; and, most impor- the recommendations of the National Mr. Chairman, ensuring that a qual- tantly, provide real savings to the Fed- Commission on the Cost of Higher Edu- ity postsecondary education remains eral Government. cation. affordable is one of the most important Some will say that we should have Specifically, this legislation will pro- things we can do for our children and gone further in our restructuring ini- vide students and parents with better for American families everywhere. If April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2519 we are truly interested in making sure We extend to the students the saving In Title II we continue the small, but effec- that all Americans can afford a quality protection allowances that reward par- tive urban community grant program. postsecondary education and if we are ents who save for their children’s col- This has been an extremely important pro- truly interested in reducing the debt lege education. The combined savings gram in forging stronger linkages between my burden placed on our students, then the of students and their families would be home community and the University of Michi- single most important thing we can do protected up to $70,000. gan in Flint. is to get colleges to lower their prices. We believe there is an appropriate I am also encouraged that passage of These provisions will be a needed first way to reward those who have saved the manager’s amendment will mean a step in that direction. without penalizing those who could significant improvement in the Title II Once again, I want to thank my col- not. We make sure that the free appli- teacher quality enhancement provi- leagues for the bipartisan way in which cation for Federal student assistance sions. This will mean authorization of we have been able to work, and I look remains free, whether in paper or elec- a significant program to improve the forward to our continued efforts to im- tronic form. recruitment, training and professional prove the Nation’s higher education We also authorize this use as the ap- development of our Nation’s teachers. programs. I urge my colleagues to sup- plication form for a loan. And, perhaps I am disappointed, however, that this port H.R. 6 and to vote yes on final pas- most important, need analysis will re- legislation contains a prohibition on sage. main focused first upon serving those funding for the National Board of Pro- Mr. Chairman, I reserve the balance with the greatest need. fessional Teaching Standards. I have of my time. We strengthen the Trio Programs, long supported the excellent work done The CHAIRMAN. Without objection, protect the emphasis of the Supple- by the board. It has undertaken the dif- the gentleman from Michigan (Mr. KIL- mental Grant Program, expand college ficult and painstaking task of estab- DEE) will control the balance of the work study to include a new focus on lishing a set of voluntary standards for time for the minority. family literacy, simplify the Perkins classroom teachers who want to dem- There was no objection. Loan Program, give the SSIG Program onstrate high proficiency and knowl- Mr. KILDEE. Mr. Chairman, I yield a new structure and purpose, and es- edge in their chosen field. We should be myself such time as I may consume. tablish a new High Hopes Program to continuing our support for the board Mr. Chairman, well over a year ago, help young people complete a high and not curtailing its important work. the gentleman from California (Mr. school education and go on to college. I am extremely pleased with the com- MCKEON), the Chairman of the Sub- For the millions who must borrow to promise we were able to reach in committee committee on Postsecondary Edu- help pay for college, we have sought to to establish a new Title V to aid Hispanic-serv- cation, Training, and Life-Long Learn- keep the cost of borrowing down. We ing institutions. ing, and I set out to produce a higher have accepted the administration’s I believe the agreement we reached in this education reauthorization bill that proposal to set the student interest area is a solid one that deserves the strong would enjoy widespread bipartisan sup- rate at the 91-day T-bill plus 1.7 per- support of Members on both sides of the aisle. port. From the outset, the gentleman cent while the student is in school and As co-chair of the Native American Caucus, and I have worked very closely to- 2.3 percent while the student is in re- I strongly support the tribal college provisions gether on this. payment, with an overall cap of 8.25 that are part of this legislation. We began with the understanding percent. For students, this will mean I am proud of the fact that we will have a that this bill was too important to be the lowest interest rates in over 17 newly authorized Title III program specifically bogged down by bipartisan differences, years. designed to help these institutions, and that and we have held to that understanding We reduce the special allowance paid we will continue all currently authorized Native 1 very well. It has not always been easy, to lenders from T-bills plus 2 ⁄2 percent American higher education programs in part B and I would be the first to admit that to 2.2 percent while the student is in of Title IX of these amendments. both of us have had to give ground and school, and from 3.1 percent to 2.8 per- Mr. Chairman, enactment of H.R. 6 is compromise. cent while the student is in repayment. essential if our critically important The result, however, is a strong piece b 2000 student aid programs are not to be in- of legislation worthy of support by I am very encouraged that we have terrupted. Passage of this bill is an im- Democrats and Republicans alike. The been able to include a limited loan for- portant step to ensure the continu- heart and soul of this bill are in its stu- giveness program in this legislation. ation of these programs and the aid dent aid provisions. They make up An individual who enters teaching, re- they provide to literally millions of more than 90 percent of this legisla- mains in the profession, and teaches in Americans who rely upon our Federal tion, and they constitute 75 percent of a high-poverty school now has the student aid programs to help put them all student aid available to help deserv- chance to have up to $17,750 of their through college. ing Americans pay for a college edu- Stafford Loans forgiven. And while there are areas and provi- cation. Without them, a college edu- I am also very pleased we have man- sions where we disagree, this bill was cation would simply be beyond the fi- aged to reach an agreement that keeps reported out of committee by a vote of nancial reach of millions of Americans. both direct lending and FFEL pro- 38 to 3 with no Democrats in opposi- With them, and with a heavy dose of grams in place. In and of itself, this is tion. As we debate H.R. 6 on the House hard work, students can truly make a major accomplishment that many floor, I would hope that we might avoid the dream of a college education come said could not be done. action that would risk the widespread true. As important as the student aid provisions bipartisan support this bill now merits I am extremely proud of the fact that are, there are other provisions of H.R. 6 that and enjoys. we have protected and even strength- also merit our support. Mr. Chairman, I look forward to a ened important student aid programs. In Title I we have forged a single definition lively, productive debate and passage Next year, the authorization level for of an institution of higher education. of a bill which we can all be proud of. the maximum Pell Grant will be $4,500, Prior to this, there has been one general Mr. Chairman, I reserve the balance a strong signal that, in Federal student definition and another more specific definition of my time. aid, there should be a stronger reliance for the purposes of Title IV. Mr. GOODLING. Mr. Chairman, I upon grant aid and less dependence We will now have one consolidated defini- yield such time as he may consume to upon loans. tion. the gentleman from Wisconsin (Mr. We have doubled the allowance for We also propose to establish within the De- PETRI), a member of the committee. child care from $750 to $1,500. We have partment of Education a performance-based Mr. PETRI. Mr. Chairman, I thank increased the income protection for de- organization, which we believe will give the the distinguished chairman of the com- pendent students from $2,250 to $3,000, Secretary the tools he needs to make sure mittee for yielding me this time. from $4,250 to $5,500 for single inde- that our student air programs are managed in Mr. Chairman, the Higher Education pendent students, and from $6,000 to an effective and efficient manner and that, first Act is one of the supremely important $8,500 for married independent stu- and foremost, they serve the students they are laws which comes before this House. It dents. designed to help. has wide ramifications for our society H2520 CONGRESSIONAL RECORD — HOUSE April 29, 1998 and for our economy. I want to com- gether on such an important issue to ment that they have worked so hard mend my full and my subcommittee all Americans across the board. on. chairmen and my colleagues on the One of my constituents was This bill is the second installment in Committee on Education and the kiddingly saying to me the other day, a two-part process that began last year Workforce who have worked so dili- he said, ‘‘Tim, the American dream to make higher education more afford- gently on this reauthorization, even as used to be to own your home. Now it is able for more Americans. Last year, as I comment on one disturbing aspect of to get your children out of the home part of the historic balanced budget it. and into an affordable school.’’ Well, agreement, this Congress gave people a In the history of guaranteed student this bill will help our Nation’s parents tax cut to help people pay for college loans, what the students paid has al- get their children into affordable tuition. This Congress made it easier ways been what the banks received, schools. for people to save some money in IRA- with the exception of in-school interest When parents want to send their chil- type accounts for college and career on subsidized loans and interest above dren to Indiana University or Purdue, school tuition. a capped amount, which have been paid it can be $13,000 a year, and if there are We finish that job or continue that to the banks by the government. That three children, it can cost those par- job with this bill. This bill dramati- has been true until now. ents $156,000 through the course of cally increases Pell Grants to a level of Under this bill, H.R. 6, for the first those tuition payments. For afford- about $4,500 at the beginning. This bill time this link will be broken. The ability reasons, we have the lowest in- makes more loans more affordable to banks will receive one-half percent terest rate in 17 years in this bill. That more students and, in response to legis- more interest than the student borrow- is a tax cut for every individual with lation I have introduced, makes those ers pay, with the taxpayer paying the children in schools across America loans more affordable and more repay- extra one-half point to the banks on with the passage of this bill. able. This bill expands work study pro- every loan for as long as that loan is In terms of accessibility, that com- grams and makes it more fair and rea- outstanding. That is an administrative plements the affordability. Children sonable as to how we calculate what a monster as well as a huge cost in- with no hope, we have now passed a family must contribute to the edu- creaser. program with high hopes, to give chil- cation of a person in that family. Why are we doing this? Because the dren the hope of getting into college. What is most important about this banks swear on a stack of Bibles that For simplification, students will be bill, however, is why it does what it they will lose money if we cut them able to apply for financial aid with one does. This bill is about honoring a com- further. They will drop out of the pro- single application for both loan pro- mitment to the people of this country gram and students will not get loans. grams. For quality, I have included an that says if they are willing to work Mr. Chairman, I have heard that par- amendment for alternative certifi- hard and make sacrifices that they can ticular Chicken Little before. cation for teachers to get certified so go as high and as far as their ability When I first became a member of the that we can bring in people from dif- and desire will take them. committee 19 years ago, the banks got ferent professions, including the mili- I am proud, Mr. Chairman, to stand 31⁄2 percent over T-bills on these loans, tary, to teach in schools. before you tonight as the son of a fa- and they swore then on a stack of Bi- I do, Mr. Chairman, have one concern ther who did not graduate from high bles that if we cut them, they would about a new regulation for reporting school, as the son of a mother who drop out. So we cut them to 3.1 per- requirements on colleges and univer- graduated from high school but had no cent. Guess what? Nobody dropped out. sities and intend to offer an amend- further opportunities. Since then, it has been the same story ment during consideration of this bill Education has been very important every time we bring up this act. They to strike that particular provision. in our family. My father-in-law was a swear on a stack of Bibles, we cut them Mr. Chairman, I thank the distin- lifelong career educator, my mother- a little bit anyway, and nobody drops guished Member, the gentleman from in-law is someone who cares deeply out. Does anybody see a problem here? Michigan (Mr. KILDEE), who has done about education, and I am just so This whole process is fundamentally such a great job on this bill, and con- proud to be a part of an effort that says flawed. We are setting prices for pri- clude by saying that Thomas Jefferson, to all of America’s children and all of vate parties in a political negotiation. who founded the very first public insti- America’s adults that the promise of a Congress should not be setting prices. tution in this country, the University higher education is much closer to We need a market process to do that. of Virginia, once said, and I quote, being a reality once we enact this leg- We have that in direct lending, where ‘‘The less wealthy people would be islation. I urge my colleagues to sup- all private services are procured qualified to understand their rights, to port it. through competitive bidding. We do maintain them, and to exercise with Mr. GOODLING. Mr. Chairman, I not have that in guaranteed lending. intelligence their parts in self-govern- yield 21⁄2 minutes to the gentleman That is why the gentleman from New ment.’’ from South Carolina (Mr. GRAHAM), an Jersey (Mr. ANDREWS) and I are propos- Thomas Jefferson, I think today, important member of our committee. ing a loan rights auction process to de- would be very proud of the higher edu- Mr. GRAHAM. Mr. Chairman, to take termine how much the banks are paid cation system in this Nation that is up where my colleague left off about and to get rid of the continuing extra the best in the world. This bipartisan families and about doing better and half point bank subsidy now in the bill. bill complements that outstanding uni- about hopes and dreams, this bill has a Mr. KILDEE. Mr. Chairman, I yield versity system. lot of that in it. 21⁄2 minutes to the gentleman from In- Mr. KILDEE. Mr. Chairman, I yield 2 I am the first person in my family to diana (Mr. ROEMER). minutes to the gentleman from New ever go to college because my parents (Mr. ROEMER asked and was given Jersey (Mr. ANDREWS). worked hard. They died fairly early on permission to revise and extend his re- (Mr. ANDREWS asked and was given in my life, and I helped put my sister marks.) permission to revise and extend his re- through, and we got student loans and Mr. ROEMER. Mr. Chairman, first of marks.) grants, and it really helped. all, I want to associate myself with the Mr. ANDREWS. Mr. Chairman, I But one of the debates about edu- bipartisan spirit and nature of this bill thank my friend from Michigan for cation is to provide quality. And, quite and commend my ranking member, the yielding me this time, and I again want frankly, one of the problems we are gentleman from Missouri (Mr. CLAY), to say to the gentleman from Pennsyl- facing in this country is a shortage of and my ranking member of the sub- vania (Mr. GOODLING) and the gen- qualified teachers. In this bill, the committee, the gentleman from Michi- tleman from California (Mr. MCKEON), higher education bill that we are about gan (Mr. KILDEE), and also give acco- our chair people, and to the gentleman to, hopefully, pass here, there is a pro- lades to the gentleman from California from Missouri (Mr. CLAY) and the gen- vision that I think the American public (Mr. MCKEON) and the gentleman from tleman from Michigan (Mr. KILDEE), needs to know about that is a very Pennsylvania (Mr. GOODLING) for bring- our ranking members, that I am proud good, common-sense step to solving ing Republicans and Democrats to- to be associated with their accomplish- that problem. April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2521 About 30 percent of the teachers in bill, I am truly proud to rise in support colleagues who are not part of the com- our K through 12 schooling systems of H.R. 6, the Higher Education Act. mittee, they will start to see that the have been in teaching over 20 years and This is a good bipartisan bill. It makes hearings in this committee made a dif- are going to retire, and we are going to higher education more available and ference, that this committee was will- have a tremendous teacher shortage in more affordable for all students. ing to listen to people who were con- the first part of the 21st century. The H.R. 6 also makes higher education structive critics of the current system number of emergency certificates being safer, particularly for women on col- and have made a series of changes that issued to get people into the teaching lege campuses, because H.R. 6 includes I think are terribly important. profession, like in New York City grants to combat violent crimes We provided loan forgiveness, as the alone, is about 18 percent, is at an all- against women on campuses. Cur- gentleman from South Carolina (Mr. time high. rently, 20 percent of college women GRAHAM) pointed out, to teachers to go We are having a hard time getting will be victims of sexual assault at to high-poverty schools, but we also people into the teaching profession, es- some time during their college years. said that those teachers have to be pecially in urban poor and rural poor These are our daughters, our sisters, qualified. No longer should poor chil- districts. In this bill we have a pro- even our mothers. College is hard dren have to suffer poor teachers. We gram, thanks to the gentleman from enough. Women should not have that have provided grants to States for up- Michigan (Mr. KILDEE), the gentleman added worry of sexual assault. These grading the State teacher preparation from California (Mr. GEORGE MILLER), grants will be used for education, for and certification system. We created and the people on our side of the aisle. prevention, for collaboration with local partnerships between colleges and We have come together in very much a public safety departments to reduce school districts to provide new teach- bipartisan fashion to address the teach- violent crimes against women on col- ers intensive professional development er shortage facing this country. lege campuses. and mentoring programs and better in- The loan forgiveness program goes as I want to thank the gentleman from formation to parents about the quali- follows: If individuals graduate from Pennsylvania (Mr. GOODLING) and I fications of the teachers of their chil- college and are willing to go into the want to thank the gentleman from dren, the teachers who are spending teaching profession and keep their cer- Missouri (Mr. CLAY), and I want to many hours a day with their children. tifications up, because we want qual- thank them both for their willingness I think it is important for our col- ity, not just bodies, and they will go to to work with me to include these leagues to understand that we listen to a Title I school where 30 percent of the grants in this bill. And at the same these critics, we try and shape and students are at the poverty level or time, we should all be thanking the mold this program, we try to reduce below and they will stay in that school gentleman from California (Mr. the cost of higher education to young system and teach for 3 years and keep MCKEON) and the gentleman from people and to their families; and I their certification levels current, in Michigan (Mr. KILDEE) for their leader- think we successfully did so. the fourth year of their teaching career ship on this bill. Good job, my col- Finally, I would just like to make we will start forgiving the student loan leagues. one remark that was pointed out by at 30 percent, and by the sixth year of On the other hand, I urge my col- our colleague the gentleman from their teaching careers we will forgive leagues to reject any amendment that Guam (Mr. UNDERWOOD). I am dis- the student loans entirely, up to will jeopardize final passage of this bill appointed that the legislation, as cur- $17,750. and to join the members of the Com- rently written, will result in students We on this committee believe that it mittee on Education and Workforce from the Freely Associated States is a small step forward to addressing from both sides of the aisle and vote being denied access to Pell Grants. I the teaching shortage in this country, for a bill that puts the best interest of think it is important that we try to and I cannot tell my colleagues the re- students and parents first. honor our commitment to these people sponse I have gotten in South Carolina. The CHAIRMAN. The Chair would from the Federated States of Microne- I have a lot of Title I schools with 30 advise that the gentleman from Michi- sia, Marshall Islands and Palau to percent poverty level or below. The gan (Mr. KILDEE) has 14 minutes re- make sure that they do have access to educators are excited. This will help us maining, and the gentleman from institutions of higher education here get the best and brightest as an incen- Pennsylvania (Mr. GOODLING) has 8 on the mainland; and I look forward to tive to go into teaching, to go into the minutes remaining. working with the committee on that schools that have a hard time recruit- Mr. KILDEE. Mr. Chairman, I yield 2 matter. ing. minutes to the gentleman from Califor- Mr. KILDEE. Mr. Chairman, I yield 2 And this amount of money is $218 nia (Mr. MILLER). minutes to the gentlewoman from New million, and it comes out of the bill Mr. MILLER of California. Mr. Chair- York (Mrs. MCCARTHY). itself. There is no new spending. I man, I thank the gentleman for yield- (Mrs. MCCARTHY asked and was given think it is Congress at its best, and I ing. permission to revise and extend her re- want to thank the people on the other I want to join my colleagues in again marks.) side of the aisle, the gentleman from congratulating our chairman the gen- Mrs. MCCARTHY of New York. Mr. Michigan (Mr. KILDEE) and the gen- tleman from Pennsylvania (Mr. GOOD- Chairman, I rise in strong support of tleman from California (Mr. MILLER), LING) and the subcommittee chairman H.R. 6. I want to commend the gen- for helping in this endeavor. A lot of the gentleman from California (Mr. tleman from California (Mr. MCKEON) lives are going to be changed very posi- MCKEON) and the gentleman from Mis- and the gentleman from Michigan (Mr. tively as a result of this, and I just souri (Mr. CLAY) and the gentleman KILDEE) for making this a truly bipar- think it is a good day for Congress, and from Michigan (Mr. KILDEE) for all of tisan effort. I hope other Members will tell the the work here. H.R. 6 will give millions of Ameri- folks back home about this new pro- This is one of the more unusual bi- cans educational opportunities well gram. partisan coalitions we have put to- into the next century. I am pleased gether in the last couple of years, but that H.R. 6 includes the provisions of b 2015 we have done it because I think every- my bill, the American Teachers Prepa- Mr. KILDEE. Mr. Chairman, I yield 2 body on the committee recognizes the ration Improvement Act. H.R. 6 will minutes to the gentlewoman from Cali- importance of this legislation to Amer- help new teachers by establishing part- fornia (Ms. WOOLSEY). ica’s families with children who are nerships between colleges and schools. (Ms. WOOLSEY asked and was given pursuing higher education and pursu- I am also pleased that H.R. 6 includes permission to revise and extend her re- ing education for the purposes of tak- legislation that the gentleman from marks.) ing their place in our economic system. New York (Mr. ENGEL) and I introduced Ms. WOOLSEY. Mr. Chairman, as a This legislation is an important vehi- to protect consumers. Our bill requires member of the Subcommittee on Post- cle, and it opens the doors of oppor- the Department of Education to put secondary Education, Training and tunity for those families. I think as we up-to-date information about financial Life-Long Learning, which crafted this look through this legislation, to my aid and scholarships on its Web site. H2522 CONGRESSIONAL RECORD — HOUSE April 29, 1998 This bill does many great things to Finally, Mr. Chairman, the bill does sities, support for high school equiva- increase access to education, but we embark on what may become a very lency programs and college assistance can do more. I am concerned that pro- complex issue in the next reauthoriza- migrant programs, Frank Tejeda visions which block schools from finan- tion. For example, how can Federal Scholarship program, funding prior- cial aid programs if their default rates student aid programs be adapted to the ities in the Fund for the Improvement are high end up denying access to edu- new and emerging technologies and the of Postsecondary Education, which em- cation to many low-income students. methods of instruction used in distance phasizes community colleges. However, earlier this month GAO re- learning programs? H.R. 6 permits the All of the foregoing provisions are es- ported that default behavior is pri- Secretary to approve distance learning pecially important to us on the Edu- marily influenced by the characteris- programs that are currently exempt cation Task Force of the Congressional tics of the borrower rather than that of from statutory or regulatory limita- Hispanic Caucus. They are of much the school. We need to hold schools ac- tions. This could very well provide greater importance to all the students countable, but we need to look very more flexibility and more oversight for impacted. The students are the winners closely at the measurements we use. emerging distance learning programs. with H.R. 6. This includes 1.2 million Many good schools risk being kicked Unfortunately, in my opinion, Mr. students and the 166 Hispanic-serving out of Federal aid programs simply be- Chairman, some of these good provi- institutions across nine States and cause they serve low-income students. sions and many others are scarred by Puerto Rico. Again, I want to commend the chair- the budget-busting nature of the bill. In closing, Mr. Chairman, I urge all man and ranking member for their Mr. KILDEE. Mr. Chairman, I yield 3 my colleagues to vote in support of work, and I urge my colleagues to sup- minutes to the gentleman from Texas H.R. 6. port H.R. 6. And again, through our (Mr. HINOJOSA). The CHAIRMAN. The Chair would educational committee, we have Mr. HINOJOSA. Mr. Chairman, I rise advise that the gentleman from Michi- worked well together, and I appreciate in support of House bill H.R. 6. This is gan (Mr. KILDEE) has 71⁄2 minutes re- that, because, in the end, we are serv- a strong bill giving students opportuni- maining, and the gentleman from ing our children, and I appreciate that ties to access higher education for the Pennsylvania (Mr. GOODLING) has 51⁄2 very much. next 5 years. minutes remaining. Mr. MCKEON. Mr. Chairman, I yield First, I want to acknowledge the ex- Mr. KILDEE. Mr. Chairman, I yield 2 21⁄2 minutes to the gentleman from Ne- cellent work accomplished by the gen- minutes to the gentlewoman from Cali- braska (Mr. BARRETT), an important tleman from Pennsylvania (Mr. GOOD- fornia (Ms. SANCHEZ). gentleman on the committee. LING). I applaud the leadership shown Ms. SANCHEZ. Mr. Chairman, I join Mr. BARRETT of Nebraska. Mr. by the gentleman from California (Mr. my colleagues today in supporting H.R. Chairman, I thank the gentleman for MCKEON), chair of the Subcommittee 6. yielding this time. on Postsecondary Education, Training I would first like to commend my Mr. Chairman, I guess let me begin and Life-Long Learning; likewise, the committee colleagues for arriving at a by expressing a certain disappointment gentleman from Missouri (Mr. CLAY) bipartisan piece of legislation that we this evening over the rule we passed and the gentleman from Michigan (Mr. can stand behind and of which we can earlier this evening. I was assured KILDEE), the ranking member of the be proud. This is one of the most im- throughout committee consideration Subcommittee on Postsecondary Edu- portant bills that Congress will vote on that the $1 billion in extra money that cation, Training and Life-Long Learn- for students and for families. It will en- we were looking for would be resolved ing, have contributed greatly towards able every American who would like to prior to coming to the floor with the the education bill before us today. It is do so to attend higher education. bill. In fact, I even cosponsored the bill amazing that we forged an excellent bi- As America moves into a knowledge- with that assurance. Now, of course, we partisan consensus agreement. intensive world of the future, the focus find in the rule that we waived the Secondly, I want to express my ap- is turning to higher education. It used budget rule so that no one could raise preciation to Secretary Riley and to be that a high school education was a point of order against the bill for vio- President Clinton for supporting our important, but today one really needs lating the Balanced Budget Act that legislative and resource allocation con- a college education. When I was in we all agreed to about 8 months ago. cerns in regard to expanding opportuni- school, we could get away with typing I know, Mr. Chairman, that this is ties for Hispanic students. I also want skills, but future students will have to much needed legislation if we are going to acknowledge the personal contribu- be prepared to access computers and be to have student loans available to the tions offered to us by the gentleman able to navigate the information high- millions of needy students out there. from Missouri (Mr. GEPHARDT), the mi- way. But to make the student loans avail- nority leader, and his staff. I believe that that bill accomplishes able today, the House apparently is Thirdly, a special mention is directed the goal of expanding educational op- willing to add another unpaid bill to to all of the presidents of HSIs who ral- portunity, particularly for low-income tomorrow’s generation of students, and lied on our behalf. And last, but not individuals, and it increases the afford- I am very disappointed over this ac- least, thanks to the Hispanic Edu- ability of colleges for many families. It tion. cation Coalition, which provided us offers a better future for approximately However, in the limited time that I with very valuable insights and con- 1 million students who attend His- do have before me, let me highlight sistent support during this Congress. panic-serving institutions and tribally- just a few provisions that I do support In September of last year, on behalf controlled colleges in approximately in the bill. The bill, first of all, would of the Congressional Hispanic Caucus, I 200 institutions across the Nation. create a student loan forgiveness pro- introduced H.R. 2495. This bill con- I have an SAI in my Congressional gram for teachers in low-income tained a number of provisions intended district, Santa Ana College, which schools. Some teachers could have to amend what is now H.R. 6. With the serves 3,000 students, and this bill will some or all of their student loans for- help and cooperation of our committee give Santa Ana College, other institu- given if they are teaching in their core leadership, a number of these provi- tions around the country, increased area. sions have been incorporated. funding, support, and recognition that H.R. 6 would also modify the needs For example, in regards to Hispanic- they need to serve all of their students. analysis formula to permit people to serving institutions, we have reduced We also included funding to expand keep more of what they earn and still eligibility barriers, legislatively and modernize active school programs, qualify for Federal student financial strengthened these institutions, in- such as TRIO, but we did not stop at assistance. If people are to move from creased the authorization levels, and that. welfare to work, or if young families provided for graduate and professional b are to afford to have one or both par- opportunity. 2030 ents in school, then we must allow Other provisions incorporated in H.R. We also created the High Hopes pro- them to earn just a little bit more and 6 include support within title III for gram which will do early intervention still qualify for student aid. tribally-controlled colleges and univer- in middle schools across the country. April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2523 I came to Congress to make sure that tion could guide consumer choices and, dress the information technology every child in my district had the same more importantly, could guide institu- worker crisis. Right now there is a opportunities for education that I had. tions’ spending choices. shortage, 300,000 vacancies across the Passing this legislation will ensure For this reason as well as the others country, and it is going to get worse. that I will carry out that mission. H.R. mentioned by my colleagues, I urge Only the Committee on the Judiciary 6 gives struggling students the oppor- Members to give this legislation their is addressing the problem. They are tunity to excel and to take full advan- hearty support. going to bring in more foreign profes- tage of their education. A ‘‘yes’’ vote Mr. KILDEE. Mr. Chairman, I yield sionals to fill the gap. Instead of train- on this bill is a vote for students and 11⁄2 minutes to the gentlewoman from ing our own, we are going to bring in families and the future. California (Ms. ROYBAL-ALLARD). foreign professionals. Mr. GOODLING. Mr. Chairman, I Ms. ROYBAL-ALLARD. Mr. Chair- The other critical need is in the area yield 3 minutes to the gentleman from man, I rise in support of H.R. 6. of more opportunity needs to be pro- Our commitment to making edu- Delaware (Mr. CASTLE), another gen- vided. We have a very complex society tleman from the committee. cation a national priority must be re- that we are in already and it is going Mr. CASTLE. Mr. Chairman, I thank affirmed. We must help our youth de- to become more complex. We need the gentleman for yielding me the time velop their talents and the skills they more Americans to go to college, more and for his erstwhile and good work on need to compete in today’s highly tech- Americans to be in college. Fifteen nical and competitive global economy. this bill, as well as a lot of other Mem- million is not enough. Fifteen million If we do not, our businesses will not bers who worked so hard on this. I, too, may seem like a lot when you consider have a skilled workforce, our economy as I have heard everybody else tonight, the junior colleges and the senior col- will suffer, and even worse, we will rob rise in support of H.R. 6. leges, but 15 million is less than 10 per- our youth of the opportunity to lead There are a number of good reasons cent of the total population. In the to support this bill but, since I only meaningful and productive lives. Mr. Chairman, H.R. 6 will help to end complex world that we are looking at, have a few minutes, I will focus on pro- the tragic loss of our youth’s talents, we need more. visions to make college more afford- energies and abilities and prepare our We need to address this problem and able. While the bill includes a new low country for the challenges of the 21st provide more opportunities. Instead of student loan interest rate and in- century. For example, H.R. 6 includes quarreling about affirmative action, we creases assistance to disadvantaged President Clinton’s new High Hopes need to open up the gates and let more students, these provisions will not be initiative which will make available people in. That is an affirmative way of much help if tuition rates continue outreach, mentoring and tutoring as- to proceed to provide the kind of to increase, thus requiring students to sistance for low-income students, pro- human capital that we need for the fu- take on more debt or minimizing the viding the help and encouragement ture. value of grant aid. By the way, tuition that many of our young people need to Mr. GOODLING. Mr. Chairman, I has increased more than any other stay in school. yield 2 minutes to the gentleman from commodity in this country in the last Mr. Chairman, H.R. 6 is a good bill Colorado (Mr. BOB SCHAFFER), a very 20 years or so. that will help our collective effort to faithful and important member of the To bring some subtle downward pres- ensure that higher education is acces- committee. sure on tuition rates, this bill includes sible to all our children. (Mr. BOB SCHAFFER of Colorado an amendment offered by the gen- Mr. KILDEE. Mr. Chairman, I yield 2 asked and was given permission to re- tleman from California (Mr. MCKEON) minutes to the gentleman from New vise and extend his remarks.) and myself based on the recommenda- York (Mr. OWENS). Mr. BOB SCHAFFER of Colorado. tions of the National Commission on (Mr. OWENS asked and was given Mr. Chairman, I thank the gentleman the Cost of Higher Education. The bill permission to revise and extend his re- for yielding me this time, the chair- includes provisions requiring the De- marks.) man of the committee and the distin- partment of Education to review regu- Mr. OWENS. Mr. Chairman, I too rise guished Member from the State of lations regarding student financial as- in support of H.R. 6. I want to con- Pennsylvania whose leadership on this sistance every 2 years and where pos- gratulate all of those who made it pos- issue has been exemplary. sible repeal, consolidate or simplify sible. The government quite frankly can do those regulations. We are grateful for the fact that more to reduce the default rate where It also provides Federal support for there are no extremist and radical pro- student loans are concerned. I would innovative projects addressing issues of posals in this bill, no radical proposals submit this is an important thing for productivity, efficiency, quality, im- to roll back the Federal role in edu- us to consider and for us to pursue, be- provement and cost control. And it re- cation of the kind we had in the 104th cause the high default rate that we are quires GAO to issue a yearly report to Congress, so we are grateful for that. experiencing presently essentially robs Congress on various college cost fac- We are grateful for the good house- resources from other worthy students tors and tuition increases. keeping that has tidied up certain who have a right to an opportunity to But one of the most important provi- parts of the Higher Education Assist- achieve higher education in America. sions requires the Secretary of Edu- ance Act. We are grateful for the im- That is true with public resources as cation to work with colleges to develop portant administrative changes that well as private resources. a clear set of standards for reporting have been made. It is all good. We have The reason this occurs, however, and college costs and prices. Right now some incremental increases, also, that the area where we ought to look to find terms mean different things in dif- we are grateful for. a remedy is right in the Federal stat- ferent places, and it is not possible to However, I want to voice my dissent ute as it exists today. There is a defini- compare costs at one school to costs at in terms of what is not here. We have tion in the Higher Education Act for another. missed a great window of opportunity what constitutes due diligence with re- For example, what is encompassed that will not be open again until 2003. spect to collecting these loans. The De- under the term ‘‘research’’? What is en- We only reauthorize this act once partment of Education unfortunately compassed under the term ‘‘building every 5 years, so we are going into the applies that standard differently under and facilities’’? Everyone needs to be 21st century and we have a status quo different circumstances. on the same page before institutions bill that we have polished up, it is I had offered an amendment in com- can voluntarily report on their costs in great, but at a time when the economy mittee which would have proposed to a meaningful way. is booming and the information tech- apply this definition of due diligence Once this occurs, then families will nology revolution is underway in in- evenly throughout the law in a way be able to make comparisons. They will dustry, we have neglected our duty to that would cause greater efforts to col- have a clear sense of what their college set priorities and make projections and lect delinquent loans and lower the de- tuition buys them, what schools spend target to meet critical needs. linquency rate. That amendment was their money on, what their financial Two critical need areas we have ne- withdrawn under my direction at the priorities are. This valuable informa- glected, one is we have neglected to ad- request of the chairman, and it was his H2524 CONGRESSIONAL RECORD — HOUSE April 29, 1998 belief and promise that he would work the High Hopes 21st century initiative This is unacceptable. It does not ensure that with me and the sponsor of the bill in making it clear when they do the right we will hire, train and keep the very best directing the Department of Education thing that there will be rewards and teachers for our students. And it will not en- to increase its efforts at collecting that we indeed expect of them the sure that smaller school districts receive nec- loans that are in default in a way that highest in terms of their achievements. essary funds to pilot professional development will effectively lower the default rate. Many of us will not be around in the programs. As a former State representative, I I am proud to say, Mr. Chairman, next century when these sixth graders value local input and state control. But the that the Department of Education to are going to college, but today we are Federal Government has a positive, affirmative this point has been receptive. Just rais- not thinking about the next election, role to playÐand it is more than simply trans- ing the level of discussion, not only in we are thinking about the next genera- ferring money. committee but right here on the floor, tion. Students not only need well trained teach- has done quite a lot to make progress Mr. GOODLING. Mr. Chairman, I ers, they also need rich learning environ- in this regard. It is one of those exam- yield myself the balance of my time. ments. We know that college students learn ples where I think we are going to be The CHAIRMAN. The gentleman as much from each other as from the formal able to resolve this problem and move from Pennsylvania is recognized for 11⁄2 education they receive. in a positive direction without the ne- minutes. Therefore, we have a duty here today to en- cessity of additional statutes and addi- Mr. GOODLING. Mr. Chairman, I just sure that we keep our colleges as a place tional regulatory law. want to make two observations. First where diversity is welcomed and respected. With that in mind, Mr. Chairman, I of all, I want to again repeat that we My colleagues on the other side say they just want to thank the gentleman from cut the lenders yields by 30 basis want a ``color-blind society''. The reality is that Pennsylvania for agreeing with me and points. The students are happy. The we don't have one and that equal opportunity the sponsor of the bill that we will con- colleges and universities are happy. does not exist for minority students. Because tinue to press privately with the De- The lenders are not. But it was a com- there is not equitable access to education we partment of Education to resolve the promise and I think a good compromise must use what we know worksÐaffirmative problem of loan defaults. for students and parents. action. Then I do want to mention some- Mr. KILDEE. Mr. Chairman, I yield In my home State of Texas, overall Hispanic thing about the National Board of Pro- the balance of my time to the gen- and African-American enrollment dropped fessional Teaching Standards. It was tleman from Pennsylvania (Mr. sharply at the larger institutions of higher edu- my belief that if we had 40 percent of FATTAH). cation as a result of he Hopwood decision, the students that are not reading well The CHAIRMAN. The gentleman and we can't allow the trend to continue. by the end of third grade, one of the from Pennsylvania (Mr. FATTAH) is rec- I oppose the Riggs amendment. It would things we should be looking at is ognized for 2 minutes. overturn the 1978 Supreme Court decision teacher training, teacher preparation. I (Mr. FATTAH asked and was given recognizing the value of affirmative action and felt we should be looking at the other permission to revise and extend his re- would deny the substantial advances that end, where these teachers are begin- marks.) have been made through affirmative action by ning to start to become teachers, so Mr. FATTAH. Mr. Chairman, let me women and minorities. Don't be fooled into be- that as a matter of fact we would not first thank the gentleman from Penn- lieving that you are voting for equality. Voting have that problem later on. sylvania (Mr. GOODLING) and the gen- And so we had to find $18 million to to end affirmative action is a vote to perpet- tleman from Missouri (Mr. CLAY), and have an offset in order to better pre- uate inequality. also the gentleman from California pare our teachers who are beginning to Mr. Chairman, protecting and ensuring our (Mr. MCKEON) and the gentleman from teach, and our teachers who are teach- children's access to a good education is a Michigan (Mr. KILDEE) for the excel- ing who need remedial work. That is most important goal. I applaud the efforts of lent work product that has been pro- where we got that $18 million. We have my colleagues and the administration in bring- duced. to understand in 1992 when they came ing this important bill to the Floor, and I look I too rise in support of favorable con- and asked for some money, they asked forward to our collective work on this crucial sideration of H.R. 6. I, however, want for a little bit of seed money. They issue. to add to what has been said by others said, ‘‘That’s all we want, a little bit of Mr. CASTLE. Mr. Chairman, I have con- about an important part of this bill seed money, and then it will pay for cerns about a provision included in H.R. 6 which is the High Hopes program, the itself.’’ Since 1992, they have spent $100 which eliminates all federal funding for the Na- fact that not only has it been embraced million, they have certified 914 teach- tional Board for Professional Teaching Stand- by the Clinton administration, but this ers, that is $100,000 apiece, none of ards. is a proposal that has been bipartisan which got into rural America and cen- I've been aware of the Board's efforts for since its inception. That is, it has en- ter city America where they are truly many years. I was Governor of Delaware joyed the support of Members on both needed. when the National Governors Association sides of this aisle, both in the commit- Mr. RODRIGUEZ. Mr. Chairman, I rise to called for the Board's creation in the late tee and in the full House. I want the discuss an issue of importance to the families 1980s. I've worked with representatives of record to fully reflect that this is a bi- of my district and to our nation as a wholeÐ major Delaware corporations such as DuPont, partisan initiative. access to higher education for all children. who strongly support the Board's mission. And I would also like to thank the staff While I agree with many aspects of the leg- the State of Delaware, like many other states, who have worked so hard on this prod- islation, I want to focus on significant sections is actively supporting the Board's objectives by uct, for Sally Stroup and also David of H.R. 6 that need improvementÐteacher providing funds to help teachers sit for Board Evans for their hard work. There are training and diversity on our college cam- certification, and by providing merit pay to millions of American families who are puses. teachers who achieve certification. going to benefit not just by the initia- Let me first say that I applaud the bill's in- There is broad and bipartisan support for tive that I referenced, but throughout clusion of the Frank Tejeda Scholarship Pro- the mission and the work of NBPTS from this bill there are programs and gramÐappropriately named after a Member of major stakeholders in education policy: ;the projects that will appropriately inter- this Chamber who fought to advance the edu- governors, business, the school boards, prin- sect with the interests and aspirations cation of some of our neediest students. The cipals, and teachers. I submit for the record a of American families for their next initiative would help bilingual individuals pay letter in support of federal funding for NBPTS, generations to receive the highest pos- for their college education in exchange for signed by several Republican and Democrat sible opportunities to reach their aca- service in schools with large limited-English governors. demic potential. proficient student populations. While questions have been raised about Finally, I want to say that I think it While I applaud this effort we must first look federal funding for the National Board, I be- says a great deal about the 105th Con- at programs that will address some key prob- lieve it is possible to achieve a compromise gress, at the same time that when we lem areas such as teacher recruitment, reten- that sets a time limit on federal funding, but al- make it clear to young people that tion and scarcity. lows the important work on teacher certifi- there are consequences when they act The current proposal would put all teacher cation to be completed. I intend to work to re- inappropriately, we are now through training funds into block grants to the States. solve this issue in conference. April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2525 April 21, 1998. that will expand student access to a resents university faculty. According to the Hon. WILLIAM F. GOODLING, higher education. AAUP, voluntary early retirement incentives Chairman, House Committee on Education and I am particularly pleased that Con- are beneficial for both the faculty members the Workforce, U.S. House of Representa- gresswoman MARGE ROUKEMA offered who choose to retire and the institutions that tives, Washington, DC. legislation that I introduced as an DEAR MR. CHAIRMAN: We are writing you need to encourage turnover to make nec- today to tell you of our support for the im- amendment during the mark-up of H.R. essary hires. Further, the voluntary nature of portant work of the National Board for Pro- 6. My legislation, College Access Means the proposed incentives and the double pro- fessional Teaching Standards. As Governors, Parents in School (CAMPUS) Act, has tections available to tenured facultyÐthe age each of us believes that one of our highest been incorporated into H.R. 6 and will discrimination laws and the tenure systemÐin- priorities is to make our system of education enable more low-income women to get sure that this ``safe harbor'' cannot be used to the very best it can be and that a vitally im- a college education by providing cam- penalize faculty members who choose not to portant factor in achieving this is to im- pus-based child care centers. Often, retire. The AAUP has written to the Committee prove the quality of the teaching that takes finding affordable quality child care place in our classrooms. We support the vol- that it supports the legislation because ``the re- untary process of National Board Certifi- can be an insurmountable barrier for tirement incentives under discussion are of- cation because it provides us with a tool for students who have children. The CAM- fered on a voluntary basis . . . [and] the legis- achieving this goal. Each of us has crafted a PUS Act will tear down this barrier by lation would permit an offer of additional bene- plan to use the high and rigorous standards providing financial incentives for col- fits. It would not permit institutions to reduce and assessments of the National Board in our leges and universities to establish cam- or eliminate retirement benefits that would oth- states and we look forward to soon having pus-based child care centers. erwise have been available to faculty after a the full system available to all of our teach- The good news is that students who certain age.'' ers. have access to campus-based child care We applaud the United States Congress for centers are more likely to stay in The Older Workers' Benefit Protection Act providing resources for the research that (OWBPA) did allow for two very limited age- launched and continues to support full devel- school and graduate than the average opment of the voluntary National Board sys- college student. Peace of mind that based early retirement subsidies. When the tem. For a little over six years, this research their children are being well cared for OWBPA was enacted, the authors did discuss and development program has proceeded enables most of these students to in detail the need for a safe harbor in defined with the help of federal dollars and with ac- achieve a higher grade point average benefit plans and noted that any plans (i.e., countability to the Congress. and to complete their college edu- defined contribution plans, the plans used pri- We look to you for continued support of cation in less time than the norm. marily by colleges and universities, and de- the federal funding for the National Board Again, I want to commend the mem- for Professional Teaching Standards at the fined benefit plans) could utilize other early re- level requested by the President for FY 1999. bers of the Education and Workforce tirement incentive plans. The Committee has Sincerely, Committee for their excellent endeav- now decided that another very limited age- James B. Hunt, Jr.; ors and I urge all of my colleagues to based early retirement subsidy should be per- Gary Locke; support this bill. missible. This exception will be available only Lawton Chiles; Mr. FAWELL. Mr. Chairman, I am very for faculty members with tenure at an institu- Thomas R. Carper; pleased to announce that the Higher Edu- tion of higher education. I believe that the George V. Voinovich; cation Amendments Act of 1998, H.R. 6, unique nature of the tenure system and the Marc Racicot; which will be passed by the House today, in- extra protections it affords over and above the Terry E. Branstad; and cludes compromise language permitting col- age discrimination laws justifies the creation of Tommy G. Thompson. leges and universities to offer voluntary age- this exception solely for higher education insti- Mrs. MORELLA. Mr. Chairman, I rise based early retirement incentives to tenured tutions. in praise of Congressmen GOODLING, faculty. Title X of H.R. 6 reflects compromise MCKEON, KILDEE and CLAY and all of language acceptable to all interested parties, Moreover, this past January, the bipartisan the Members of the Committee on Edu- including Democrat and Republican leaders of National Commission on the Cost of Higher cation and the Workforce for their hard the Education and Workforce Committee, the Education included this legislative initiative in work and their leadership in bringing Administration, the higher education commu- its recommendations to check the skyrocketing H.R. 6, the Higher Education Amend- nity, the American Association of University cost of a college education. The Commission ments of 1998 to the House floor in a Professors (AAUP)Ðthe well known faculty recommended that ``Congress enact a clari- timely manner. You deserve great cred- union, and other groups. This language still fication to the Age Discrimination in Employ- it for this thoughtful and carefully- accomplishes the basic purposes of the bipar- ment Act to ensure that institutions offering crafted bill that will increase access to tisan bill H.R. 3473, which I introduced on defined contribution retirement programs are a higher education for millions of March 17, 1998 (and which was incorporated able to offer early retirement incentives to Americans. in the version of H.R. 6 reported by the Com- tenured faculty members. The Commission For most Americans, student loans mittee). endorses pending Senate Bill 153, which are the primary source of education This legislation would amend the Age Dis- would accomplish this purpose.'' funding. From the G.I. Bill to Pell crimination in Employment Act of 1967 Title X is similar to S. 153, introduced by Grants and the Stafford Loan Program, (ADEA) to provide a ``safe harbor'' for certain Senators Moynihan and Ashcroft. However, financial aid has enabled millions of age-based voluntary early retirement incentive unlike the Senate version, this provision working class families to send their plans (VERIPs) offered by colleges and uni- assures that no professor is denied an oppor- children to college. College graduates versities to tenured faculty. The new Title X tunity to receive the retirement incentive be- earn, on average, 50 percent more than clarifies the scope of that safe harbor in sev- cause the professor is too old. The provision those with only a high school diploma. eral respects from the Committee-reported requires that each otherwise eligible faculty This legislation will provide college version. member will have one opportunity of at least I support the principles of the ADEA and be- students with the lowest interest rates 180 days to elect to retire and receive the lieve that the unique nature of faculty tenure for academic loans in 17 years. maximum benefit that could then be elected if justifies this amendment. Moreover, the ADEA The bill expands the Pell Grant Pro- the faculty member were younger. The provi- already recognized the unique nature of fac- gram which helps youngsters from dis- sion clarifies that this 180-day opportunity ulty tenure. In 1986, when Congress amended advantaged backgrounds, and improves must be afforded not only to faculty members the ADEA to abolish the mandatory retirement campus-based aid programs like Sup- who have attained the minimum age and sat- plemental Education Opportunity age, it included a seven year exemption for tenured faculty. When the exemption expired isfied the other eligibility requirements at the Grants, Work Study, and Perkins time the plan is established, but also to faculty Loans. in December 1993, a National Academy of The process of applying for student Sciences report raised concerns that the ten- members who satisfy these eligibility require- loans has been simplified, and there ure system and diminished faculty turnoverÐ ments at some later time while the plan re- has been an effort to reduce the regu- particularly at research universitiesÐcould in- mains in effect. The provision also requires latory burden on most colleges and crease costs and limit institutional flexibility in that faculty members be given at least 180 universities. responding to changing academic needs, par- days to plan for retirement after making their Students will have more timely ac- ticularly with regard to necessary hires in new election. cess to crime statistics and informa- and expanding fields and disciplines. It thus The compromise language for Title X also tion that will allow them to have an predicated its recommendation for ending clarifies that the ``safe harbor'' applies only to accurate picture of campus safety. In mandatory retirement on the enactment of VERIPs that offer supplemental benefits, and addition, the bill gives the Secretary of several proposals, including this legislation. would not apply where an institution imple- Education the unprecedented authority This legislation has been endorsed by the ments any age-based reduction or cessation to study distance learning techniques AAUP, the widely recognized union that rep- of benefits that would otherwise have been H2526 CONGRESSIONAL RECORD — HOUSE April 29, 1998 available to tenured faculty. The new Title X nearly 100 sorely needed reforms that were The resultÐstudent and their families being clarifies that an institution may not cease offer- good for students and good for taxpayers. shut out of the federal student loan program ing a retirement or severance benefit that has One of those reforms was to make schools and unable to obtain funds for collegeÐis un- been generally available to tenured faculty ineligible for guaranteed student loans if their acceptable. and, within 365 days thereafter, begin offering loan default rates were above 25 percent Which is why we believe we have devised that benefit solely to faculty members who re- three years in a row. Today's reauthorization a plan which would retain these private lend- tire under the VERIP. The provision would not, goes further by also taking Pell Grant eligibility ers in the student loan program. And it is in- however, preclude an institution from dis- away from schools with high default rates. cluded as part of today's Higher Education Act continuing benefits under an existing early re- This will recover millions of dollars currently Amendments. tirement or exit incentive plan and substituting being squandered and instead put that money This compromise provides students with a a VERIP within 365 days. to work with hard-working students at legiti- cut in the interest rate by 80 bases points, Finally, the new Title X clarifies that the en- mate schools. while providing banks a different interest rate, actment of this safe harbor is not intended to Reforms such as the three-year 25 percent with the difference being paid by the federal effect the application of the ADEA to any other default criteria were intended to put an end to government. plans or employers. risk-free federal subsidies for unscrupulous, To students this means savings of over It is my hope that this legislation will contrib- for-profit trade schools who promise students $1,000 per student for a $20,000 loan. But just ute to containing the costs of higher edu- a good education that leads to a good job and as importantly, this means access! By provid- cation, and will be beneficial both to colleges then fail to deliver on that promiseÐat the ex- ing banks with this small profit margin, they and universities and to their faculty members pense of both students and the taxpayer. If will remain in the guaranteed lending program, who choose to retire. In the words of the these schools violate these rules, then they and will continue to make it possible for stu- AAUP, the legislation will ``provide greater would be bounced from the program. dents to further their education! flexibility in faculty retirement planning, offer a We have already determined that schools TEACHER TRAINING substantial retirement benefit to those profes- with unacceptably high student loan default Another strong proposal in this Higher Edu- sors who choose to retire under the terms of rates should not be permitted to participate in cation Act deals with the issue of teacher an incentive plan, and leave other professors the federally guaranteed student loan pro- training. As we talk about raising standards for whole in their choice to continue their ca- gram. I submit that if a school is deemed ineli- students, we should also talk about raising reers.'' gible to participate in the student loan pro- standards for teachers. To help our nation's Mrs. ROUKEMA. Mr. Chairman, I rise in gram, then it should not be permitted to par- students, we need to help our nation's teach- strong support of the Higher Education Act ticipate in the Pell Grant program. ers. I should note that when we temporarily put that we have before us today. This bill will focus on strengthening State this restriction on abuse of Pell Grant money This bill is one of the biggest bills we will teacher certification requirements to improve into effect for one year by making it a part of complete this Congress. These are the issues the academic knowledge of teachers in the the Omnibus Consolidated Rescissions and that count for the American people. subject areas in which they are certified to Appropriations Act of 1996, we redistributed To be competitive in the global economy, teach. Teachers who teach math should have approximately $8 million to responsible we need to provide our country's youth with knowledge in math, and teachers who teach schools. Since it was a part of an appropria- the means to better their education. science should have knowledge in science. tions act, that accomplishment was only tem- Mr. Speaker, we should be calling this bill This bill provides competitive grants to the porary. Today's action will make this provision ``the American Act!'' This is the legislation that Governors. It will help raise the State aca- will enable young people across this nation to permanently a part of the law. This is an opportunity to stretch our Pell demic standards required to enter the teaching obtain the education they need to develop Grant funds by disqualifying those schools that profession. their skills so that they may get the good job we have already disqualified from the federally In some states it is harder to graduate from at good wages. In this exchange, our students guaranteed student loan program. This allows high school than to become a certified teach- get the job they want, the roof over their head us to make the most of our limited federal dol- er. Something is wrong here! and America gets hard-working, productive According to a U.S. Department of Edu- lars! members of our society. cation report, 39.5% of science teachers had STUDENT LOAN INTEREST RATE ISSUE Among the many important provisions of not studied science as a major or minor, 34% But there is another aspect of finding funds this bill, are that this bill saves the student of mathematics teachers and 25% of English for access to college that I believe we have loan program, encourages the provision of teachers were similarly teaching ``out of field.'' resolved hereÐthe federal student loan inter- campus-based child care, cuts down on scam How can our nation's students learn science est rate issue. The proposal in this legislation schools and works on the training of our or math when their teachers do not know it? will help save access to higher education, teachers. Every classroom should have a well-edu- while helping students save on the cost of It is a good bill that makes sense for today's cated, knowledgeable teacher. higher education. students! On July 1, a change in the student loan in- CHILD CARE PELL GRANT terest rate is scheduled to take place that is This bill includes an amendment I offered at Clearly, one of the biggest problems facing believed by many independent organizations, Committee to help society with today's child students today is the cost of higher education. including CRS and GAO, to possibly drive care problems. It is a sad reality that today's While we must do everything we can to put many private lenders from the student loan headlines are filled with stories that spring higher education within reach of every student, market. from the everyday struggle of families to se- we also must do everything we can to ensure I recognize that the change would have re- cure safe and dependable child care. This to protect our scarce resourcesÐto ensure duced the rate for students paying back their problem is especially great for men and that they are not misused or wasted or squan- loans. However it would have made the loans women who want to further their education to dered. virtually unprofitable for the banksÐleading make a better life for them and their family. With this in mind I (along with Representa- many banks to leave the market. The trends in society and the American tive BART GORDON of Tennessee) introduced I am speaking today wearing two hats. workforce show a necessity for education be- the ``Pell Grant Student/Taxpayer Protection OneÐas a longtime Member of the Post- yond high school. Market demands require a Act'' that is now a part of this Higher Edu- secondary Education Subcommittee. The higher level of educational achievement than cation Act package. other hatÐI serve as Chairwoman of the high school. This is near impossible to achieve This provision prevents a postsecondary House Subcommittee on Financial Institutions when reliable, quality child care is not avail- school from participating in the Pell Grant pro- of the House Banking Committee. able. gram if that school is already ineligible to par- So I know this program from both sidesÐso This bill includes this proposal to encourage ticipate in the federally guaranteed student to speak. a new public-private partnership between insti- loan program. Currently, 70% of all student loans are origi- tutions and businesses to develop solutions to This is a critical time for our country. Con- nated by private lenders, such as the banks. meet students' child care needs. This initiative gress is trying to save taxpayer dollars while Further, about 5000 banks participate in the is in the form of competitive grants to higher improving the quality of post-secondary edu- student loan market today. If the market be- education institutions that would go directly to cation for all Americans. We took strong steps comes virtually unprofitable, then many of the institution to assist them in providing cam- toward that goal when we last reauthorized these banks will leave the market, and leave pus-based child care service to low-income the Higher Education Act and implemented many students without the means to a loan. students. April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2527 This legislation does not mandate a Federal an original bill for the purpose of fur- tained in the application, such term means program for child care that imposes some ther amendment. that individual, entity, or agency; and Washington-based requirements on local com- No other amendment to the commit- ‘‘(B) for the purpose of section 273(b), an el- igible partnership. munities. In fact, this bill combines the concept tee amendment in the nature of a sub- ‘‘(2) ELIGIBLE PARTNERSHIP.—The term ‘eli- of state and local control of education with the stitute is in order unless printed in the gible partnership’ means an entity consist- time-tested concept of the public-private part- CONGRESSIONAL RECORD. Those amend- ing of an exemplary private independent or nership. This bill makes it possible for local in- ments shall be considered read. State-supported public institution of higher stitutions and businesses to work together to The Chairman of the Committee of education which prepares teachers, and a create their own program that meets the the Whole may postpone until a time local educational agency, and which may needs of their own community, whatever they during further consideration in the also consist of the eligible grant recipient, may be. Committee of the Whole a request for a other institutions of higher education, public We need to help students solve the child recorded vote on any amendment and charter schools, public and private nonprofit elementary and secondary schools, or other care problem. And we need to give institutions may reduce to not less than 5 minutes public and private nonprofit agencies or or- the means to put their proposals to the test. the time for voting by electronic de- ganizations. This bill helps us do that! vice on any postponed question that ‘‘(b) APPLICATIONS.—To be eligible to re- CONCLUSION immediately follows another vote by ceive a grant under this part, an eligible For all of these reasons, and many others electronic device without intervening grant recipient shall, at the time of the ini- that I do not have time to discuss today, this business, provided that the time for tial grant application, submit an application legislation is critical to all students. voting by electronic device on the first to the Secretary that meets the require- in any series of questions shall not be ments of this part. Let's pass this legislation. ‘‘(c) CONTENTS OF APPLICATION.—Such ap- Thank you. less than 15 minutes. plication shall include a description of how Mr. STUMP. Mr. Chairman, I rise today to b 2045 the eligible grant recipient intends to use express my appreciation for the provisions in funds provided under this part and such AMENDMENT NO. 1 OFFERED BY MR. GOODLING H.R. 6 that put Montgomery GI Bill education other information and assurances as the Sec- benefits on an equal footing with benefits pro- Mr. GOODLING. Mr. Chairman, pur- retary may require. vided under other programs. suant to the rule, I offer an amendment ‘‘SEC. 273. USE OF FUNDS. Unfortunately, veterans are penalized when printed in Part 2 of the report. ‘‘(a) GENERAL ACTIVITIES.—The eligible they apply for other Federal education assist- The CHAIRMAN. The Clerk will des- grant recipient of a State that receives a ance benefits like Pell Grants. ignate the amendment. grant under this subpart shall use a portion Under current law, veterans education bene- The text of the amendment is as fol- of such grant to carry out 1 or more of the following activities: fits are counted against the amount of assist- lows: Part 2 amendment printed in House Report ‘‘(1) Reforming State teacher certification ance a veteran may receive from other Fed- requirements to ensure that current and fu- eral education benefit programs. 105–499 offered by Mr. GOODLING: Page 8, line 5, strike ‘‘is redesignated’’ and ture teachers possess the necessary academic On the other hand, AmeriCorps education insert ‘‘is amended by striking subsection content knowledge in the subject areas in benefits don't reduce assistance from other (a), and by redesignating subsection (b)’’. which they are certified and assigned to Federal education assistance programs. Page 23, line 21, insert ‘‘or veterinary’’ teach. Thus, veterans who serve their Nation in after ‘‘medical’’; and on lines 23 and 24, ‘‘(2) Providing prospective teachers alter- often-hostile environments and at great risk to strike ‘‘a graduate medical school’’ and in- natives to schools of education through pro- their lives are denied benefits solely due to sert ‘‘such school’’. grams at colleges of arts and sciences or at nonprofit organizations. their military service, and that is not right. Page 24, strike lines 22 through 24 and in- sert the following: ‘‘(3) Funding programs which establish or This bill corrects that inequity. expand alternative routes to State certifi- Mr. Chairman, I congratulate Chairman ‘‘(II) the institution has a clinical training program that was approved by a State as of cation for highly qualified individuals, in- GOODLING, Subcommittee Chairman MCKEON, January 1, 1992, or the institution’s students cluding mid-career professionals from other and their respective ranking Members, Mr. complete their clinical training at an ap- occupations, paraprofessionals, and former CLAY and Mr. KILDEE, for the way they have proved veterinary school located in the military personnel. responded to this problem. United States. ‘‘(4) Implementing reforms which hold in- I know they have dedicated a significant Page 33, line 7, strike ‘‘105(b)’’ and insert stitutions of higher education with teacher amount of scarce resources to our veterans. ‘‘105’’. preparation programs accountable for pre- Page 58, beginning on line 21, strike part E paring teachers who are highly competent in What they are doing will make a measur- the academic content areas in which they able difference in the lives of veterans pursu- through page 68, line 11, and insert the fol- lowing: plan to teach. ing an education. ‘‘(5) Developing and implementing effective ‘‘PART E—TEACHER QUALITY Mr. Chairman, I strongly urge my colleagues mechanisms to expeditiously remove incom- ENHANCEMENT GRANTS to support H.R. 6. petent or unqualified teachers. The CHAIRMAN. All time for general ‘‘SEC. 271. PURPOSE. ‘‘(6) Recruiting minorities, and others, into debate has expired. ‘‘The purposes of this part are— the teaching and counseling professions, in- Pursuant to the rule, the committee ‘‘(1) to provide competitive grants to cluding education paraprofessionals, former States for assistance in strengthening the amendment in the nature of a sub- military personnel, and mid-career profes- quality of the teaching force by improving sionals, by providing financial and other as- stitute printed in the bill, modified by the academic knowledge of teachers in the sistance related to instruction, induction, the amendments printed in part 1 of subject areas in which they teach; mentoring, and support services that include House Report 105–499, shall be consid- ‘‘(2) to hold institutions of higher edu- pre-service and in-service components, to ered as an original bill for the purpose cation with teacher preparation programs serve within schools which have— of amendment under the 5-minute rule accountable for preparing teachers who are ‘‘(A) a high percentage of children in pov- by title, and each title shall be consid- highly competent in the academic content erty; ered read. areas in which they plan to teach, including ‘‘(B) low retention rates for teachers; or training in the effective uses of technologies ‘‘(C) a high percentage of teachers teaching Before consideration of any other in the classroom; and amendment, it shall be in order to con- subjects for which they are not qualified to ‘‘(3) to recruit high quality individuals, in- teach. sider the amendment printed in part 2 cluding individuals from other occupations, ‘‘(b) PARTNERSHIP ACTIVITIES.—An eligible of the report if offered by the gen- into the teaching force. partnership that receives a grant under this tleman from Pennsylvania (Mr. GOOD- ‘‘SEC. 272. ELIGIBILITY. subpart shall use such funds to carry out 1 or LING) or his designee. That amendment ‘‘(a) DEFINITIONS.—For purposes of this more of the following activities: shall be considered read, shall be de- part: ‘‘(1) Implementing reforms which hold in- batable for 20 minutes, equally divided ‘‘(1) ELIGIBLE GRANT RECIPIENT.—The term stitutions of higher education with teacher and controlled by the proponent and an ‘eligible grant recipient’ means— preparation programs accountable for pre- opponent, shall not be subject to ‘‘(A) other than for the purpose of section paring teachers who are highly competent in 273(b), a Governor of a State, except that if, the academic content areas in which they amendment, and shall not be subject to pursuant to the law or constitution of such plan to teach; a demand for division of the question. State, another individual, entity, or agency ‘‘(2) Creating opportunities for enhanced If that amendment is adopted, the in a State that is responsible for the teacher and ongoing professional development which bill, as amended, shall be considered as certification and preparation activities con- improves the academic content knowledge of H2528 CONGRESSIONAL RECORD — HOUSE April 29, 1998

teachers in the subject areas in which they ‘‘(7) SECRETARIAL SELECTION.— knowledge in the content area or areas in are certified to teach or in which they are ‘‘(A) IN GENERAL.—Subject to subparagraph which the teacher provides instruction. Prior working toward certification to teach. (B), the Secretary shall determine, based on to each subsequent receipt of funds under ‘‘(3) Providing programs designed to imple- the peer review panel’s recommendations, this part, such State shall demonstrate that ment the successful integration of tech- which applications shall receive funding and 70 percent of the graduates of each institu- nology into teaching and learning. the amounts of such grants. In determining tion of higher education in the State have ‘‘(4) Recruiting minorities, and others, into grant amounts, the Secretary shall take into met such goal and continue to progress to the teaching and counseling professions, in- account the total amount of funds available exceed such goal. Such assessment shall be cluding education paraprofessionals, former for all grants under this part and the types at least as rigorous as those in place on the military personnel, and mid-career profes- of activities proposed to be carried out. date of enactment of this Act and shall have sionals, by providing financial and other as- ‘‘(B) EFFECT OF RANKING BY PANEL.—In qualifying scores no lower than those in sistance related to instruction, induction, making grants under this part, the Secretary place on the date of enactment of this Act. mentoring, and support services that include shall select applications according to the ‘‘(C) PROVISION TO PEER REVIEW PANEL.— pre-service and in-service components, to ranking of the applications by the peer re- The Secretary shall provide the reports sub- serve within schools which have— view panel, except in cases where the Sec- mitted under subparagraph (A) to the peer ‘‘(A) a high percentage of children in pov- retary determines, for good cause, that a review panel convened under subsection erty; variation from that order is appropriate. (a)(3). The panel shall use such accountabil- ‘‘(B) low retention rates for teachers; or ‘‘(b) FORMULA GRANTS.— ity report in recommending applications for ‘‘(C) a high percentage of teachers teaching ‘‘(1) ALLOTMENT.—For any fiscal year for subsequent funding under this section. subjects for which they are not qualified to which the amount appropriated to carry out ‘‘(4) TEACHERS QUALIFICATIONS PROVIDED TO teach. this part exceeds $250,000,000, the Secretary PARENT UPON REQUEST.—Any local edu- ‘‘SEC. 274. COMPETITIVE AWARDS. shall make allotments to the eligible grant cational agency that participates as an eligi- ‘‘(a) COMPETITIVE GRANTS.— recipient of each State, pursuant to the for- ble recipient or partner under this part shall ‘‘(1) APPLICABILITY.—The Secretary shall mula described in paragraph (2), to enable make available, upon request and in an un- make grants in accordance with the require- the eligible grant recipient to carry out the derstandable and uniform format, to any ments of this subsection for any fiscal year activities under this part, including the parent of a student attending any school in for which the amount appropriated under funding of eligible partnerships to carry out the local educational agency, information section 276 does not equal or exceed activities described in section 273(b). regarding the qualifications of the student’s ‘‘(2) ALLOTMENT FORMULA.—For any such $250,000,000. classroom teacher, both generally and with fiscal year, an eligible grant recipient from ‘‘(2) COMPETITIVE BASIS FOR AWARDS.—The regard to the subject matter in which the each State that submits an application Secretary shall make annual grants under teacher provides instruction. under section 272(a) shall receive an allot- this subsection on a competitive basis. ‘‘SEC. 275. LIMITATIONS. ‘‘(3) PEER REVIEW PANEL.—The Secretary ment under this part in an amount that ‘‘(a) FEDERAL CONTROL PROHIBITED.—Noth- shall provide the applications submitted by bears the same ratio to the amount appro- priated as the school age population ages 5 ing in this part shall be construed to permit, eligible grant recipients under section 272 to allow, encourage, or authorize any Federal a peer review panel for evaluation. With re- through 17 of the State bears to the school control over any aspect of any private, reli- spect to each application, the peer review age population ages 5 through 17 of all the gious, or home school, whether or not a panel shall initially recommend the applica- States, except that no State shall receive home school is treated as a private school or tion for funding or for disapproval. less than an amount equal to 1⁄4 of 1 percent home school under State law. This section ‘‘(4) PRIORITY.—In recommending applica- of the total amount. shall not be construed to bar private, reli- tions to the Secretary, the panel shall give ‘‘(c) ADDITIONAL REQUIREMENTS.— gious, or home schools from participation in priority to— ‘‘(1) MATCHING REQUIREMENT.—Each State programs or services under this part. ‘‘(A) applications from States with propos- receiving funds under this part shall provide, ‘‘(b) NO CHANGE IN STATE CONTROL ENCOUR- als which promise initiatives to reform State from non-Federal sources, an amount equal AGED OR REQUIRED.—Nothing in this part teacher certification requirements which are to 1⁄2 of the amount of the grant in cash or in shall be construed to encourage or require designed to ensure that current and future kind to carry out the activities supported by any change in a State’s treatment of any pri- teachers possess the necessary academic con- the grant. vate, religious, or home school, whether or tent knowledge in the subject areas in which ‘‘(2) LIMITATION ON ADMINISTRATIVE EX- not a home school is treated as a private they are certified to teach or which include PENSES.—An eligible recipient that receives school or home school under State law. innovative reforms to hold institutions of a grant under this part may use not more ‘‘(c) NATIONAL SYSTEM OF TEACHER CERTIFI- higher education with teacher preparation than 2 percent of the grant funds for admin- CATION PROHIBITED.—Nothing in this part programs accountable for preparing teachers istrative costs. shall be construed to permit, allow, encour- who are highly competent in the academic ‘‘(3) REPORTING.— age, or authorize any national system of content areas in which they plan to teach; ‘‘(A) IN GENERAL.—An eligible grant recipi- teacher certification. and ent that receives a grant under this section ‘‘(B) eligible partnership applications shall submit an accountability report to the ‘‘SEC. 276. AUTHORIZATION OF APPROPRIATIONS. which— Secretary and the Committee on Education ‘‘There are authorized to be appropriated ‘‘(i) include the eligible grant recipient and and the Workforce of the House of Rep- to carry out this part such sums as may be demonstrate a high degree of collaboration resentatives and the Committee on Labor necessary for each of the fiscal years 1999 with the State agency responsible for teach- and Human Resources of the Senate. Such through 2003.’’. Page 68, after line 11, insert the following er certification and preparation; and reports shall include a description of the de- ‘‘(ii) include a local educational agency gree to which substantial progress has been new sections (and redesignate the succeeding which includes a school with— made in meeting the following goals: section and conform the table of contents ac- ‘‘(I) a high percentage of children in pov- ‘‘(i) Raising the State academic standards cordingly): erty; required to enter the teaching profession. SEC. 206. CAMPUS SAFETY. ‘‘(II) low retention rates for teachers; or ‘‘(ii) Increasing the percentage of classes (a) GRANTS TO COMBAT VIOLENT CRIMES ‘‘(III) a high percentage of teachers teach- taught in core academic subject areas by AGAINST WOMEN ON CAMPUSES.—Title II is ing subjects for which they are not qualified teachers fully certified by the State to teach further amended by adding at the end the to teach. in those subject areas. following new part: ‘‘(5) RANKING OF APPLICATIONS.—With re- ‘‘(iii) Decreasing shortages of qualified ‘‘PART F—GRANTS TO COMBAT VIOLENT spect to each application recommended for teachers in poor urban and rural areas. CRIMES AGAINST WOMEN ON CAMPUSES funding, the panel shall assign the applica- ‘‘(iv) Increasing opportunities for enhanced ‘‘SEC. 281. GRANTS TO COMBAT VIOLENT CRIMES tion a rank, relative to other recommended and ongoing professional development which AGAINST WOMEN ON CAMPUSES. applications, based on the priority described improves the academic content knowledge of ‘‘(a) GRANTS AUTHORIZED.— in subsection (c), the extent to which the ap- teachers in the subject areas in which they ‘‘(1) IN GENERAL.—The Secretary is author- plication furthers the purposes of this part, are certified to teach or in which they are ized to make grants to institutions of higher and the overall quality of the application, working toward certification to teach. education for use to provide training to ad- based on the quality and scope of State-sup- ‘‘(B) ACCOUNTABILITY OF STATE INSTITUTION ministrators, security personnel, and campus ported strategies to improve quality of OF HIGHER EDUCATION.—Prior to receiving personnel and student organizations for the teacher preparation and their teaching force. funds under this part, an eligible grant recip- purpose of developing and strengthening ef- ‘‘(6) RECOMMENDATION OF AMOUNT.—With ient shall demonstrate that at least 80 per- fective security and investigation strategies respect to each application recommended for cent of graduates of each of the exemplary to combat violent crimes against women on funding, the panel shall make a rec- institutions of higher education in any eligi- campuses, and to develop and strengthen vic- ommendation to the Secretary with respect ble partnership described in section 273(a)(2) tim services in cases involving violent to the amount of the grant that should be who enter the field of teaching pass all appli- crimes against women on campuses, which made. The Secretary shall use 1⁄3 of the funds cable State qualification assessments of new may include partnerships with local criminal made available under this part to fund appli- teachers, which must include assessments of justice authorities and community-based cations submitted by eligible partnerships. each prospective teacher’s subject matter victims services agencies. April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2529

‘‘(2) AWARD BASIS.—The Secretary shall would, in the absence of Federal funds, be Page 108, line 19, insert ‘‘State agencies,’’ award grants and contracts under this sec- made available by the applicant for the pur- after ‘‘such as’’. tion on a competitive basis. pose described in this part; and Page 132, line 15, strike ‘‘computer-related ‘‘(3) EQUITABLE PARTICIPATION.—The Sec- ‘‘(E) include such other information and careers’’ and insert ‘‘careers in information retary shall make every effort to ensure the assurances as the Secretary reasonably de- technology’’. equitable participation of private and public termines to be necessary. Page 135, line 12, strike ‘‘September 30, institutions of higher education and to en- ‘‘(3) COMPLIANCE WITH CAMPUS CRIME RE- 2001’’ and insert ‘‘the earlier of the date of sure the equitable geographic participation PORTING REQUIRED.—No institution of higher enactment of the Higher Education Amend- of such institutions in the activities assisted education shall be eligible for a grant under ments of 1998 or October 1, 1998’’. under this part. this section unless such institution is in Page 141, beginning on line 22, strike para- ‘‘(4) PRIORITY.—In the award of grants and compliance with the requirements of section graph (5) through page 142, line 4, and insert contracts under this section, the Secretary 485(f) of this Act. the following: shall give priority to institutions of higher ‘‘(d) REPORTING.—Not later than 180 days ‘‘(5) interest earned on the Federal Fund education or consortia of such institutions after the end of the fiscal year for which during the first 3 years after the date of en- that show the greatest need for the sums re- grants are made under this part, the Sec- actment of this section by a limited number quested. retary shall submit to the committees of the of guaranty agencies (not to exceed 10) that ‘‘(b) USE OF GRANT FUNDS.—Funds provided House of Representatives and the Senate re- demonstrate to the Secretary the potential under this part may be used for the following sponsible for issues relating to higher edu- for a negative cash flow in the Operating purposes: cation and crime, a report that includes— Fund during the restructuring of their oper- ‘‘(1) To provide training for campus secu- ‘‘(1) the number of grants and funds dis- ations in accordance with the requirements rity and college personnel, including campus tributed under this part; of this section and section 422A. disciplinary or judicial boards, that address ‘‘(2) a summary of the purposes for which Page 144, line 23, strike ‘‘$30,000,000’’ and the issues of sexual assaults, stalking, and these grants were provided and an evaluation insert ‘‘$43,000,000’’. domestic violence. of their progress; Page 145, line 16, strike ‘‘$150,000,000’’ and ‘‘(2) To implement and operate education ‘‘(3) a statistical summary of the persons insert ‘‘$215,000,000’’. programs for the prevention of violent served, detailing the nature of victimization, Page 145, line 21, insert ‘‘agency’’ after crimes against women. and providing data on age, sex, race, eth- ‘‘guaranty’’. ‘‘(3) To develop, enlarge, or strengthen sup- nicity, disability, relationship to offender, Page 148, strike lines 10 through 17 and in- port services programs including medical or geographic distribution, and type of campus; sert the following: psychological counseling for victims of sex- and (3) GUARANTY AGENCY RESERVE LEVEL.— ual offense crimes. ‘‘(4) an evaluation of the effectiveness of Section 428(c)(9) is amended— ‘‘(4) To create, disseminate, or otherwise programs funded under this part, including (A) in subparagraph (A), by striking ‘‘.5 provide assistance and information about an evaluation based on the reduction ob- percent’’ and inserting ‘‘0.25 percent’’; and victims’ options on and off campus to bring served in crimes reported pursuant to sec- (B) in subparagraph (C)— disciplinary or other legal action. tion 485(f). (i) by striking ‘‘80 percent pursuant to sec- ‘‘(5) To train campus administrators and ‘‘(f) GRANTEE REPORTING.—Upon comple- tion 428(c)(1)(B)(ii)’’ and inserting ‘‘85 per- campus security personnel to more effec- tion of the grant or contract period under cent pursuant to paragraph (1)(B)(i) of this tively identify and respond to violent crimes this section, the grantee institution or con- subsection’’; and against women on campus, including the sortium of such institutions shall file a per- (ii) by striking ‘‘30 working days’’ and in- crimes of sexual assault, stalking, and do- formance report with the Secretary explain- serting ‘‘45 working days’’. mestic violence. ing the activities carried out together with Page 149, beginning on line 23, strike ‘‘pre- ‘‘(6) To develop and implement more effec- an assessment of the effectiveness of those sented that the guaranty agency successfully tive campus policies, protocols, orders, and activities in achieving the purposes of this brings’’ and insert ‘‘paid as a result of the services specifically devoted to prevent, section. The Secretary shall suspend funding loan being brought’’. identify, and respond to violent crimes for an approved application if an applicant Page 150, beginning on line 8, strike ‘‘the against women on campus, including the fails to submit an annual performance re- borrower’’ and all that follows through the crimes of sexual assault, stalking, and do- port. period on line 10 and insert the following: mestic violence. ‘‘(g) DEFINITIONS.—In this part— ‘‘at least 12 months has elapsed between the ‘‘(7) To develop, enlarge, or strengthen vic- ‘‘(1) the term ‘domestic violence’ includes date the borrower became current in his or tim services programs for local campuses acts or threats of violence, not including her payments and the date the lender filed a and to improve delivery of victim services on acts of self-defense, committed by a current subsequent default aversion assistance re- campuses. or former spouse of the victim, by a person quest.’’. ‘‘(8) To provide capital improvements (in- with whom the victim shares a child in com- Page 153, strike lines 5 through 12 and in- cluding improved lighting and communica- mon, by a person who is cohabitating with or sert the following: tions facilities but not including the con- has cohabitated with the victim, by a person ‘‘(3) PLUS LOANS.—With respect to any struction of buildings) on campuses to ad- similarly situated to a spouse of the victim loan under section 428B for which the first dress violent crimes against women on cam- under the domestic or family violence laws disbursement is made on or after July 1, 1998, pus, including the crimes of sexual assault, of the jurisdiction, or by any other person the applicable rate of interest shall, during stalking, and domestic violence. against a victim who is protected from that any 12-month period beginning on July 1 and ‘‘(9) To support improved coordination be- person’s acts under the domestic or family ending on June 30, be determined on the pre- tween campus administrators, campus secu- violence laws of the jurisdiction; ceding June 1 and be equal to the lesser of— rity personnel, and local law enforcement to ‘‘(2) the term ‘sexual assault’ means any ‘‘(A)(i) the bond equivalent rate of 91-day reduce violent crimes against women on conduct proscribed by chapter 109A of title Treasury bills auctioned at the final auction campus. 18, United States Code, whether or not the held prior to such June 1; plus ‘‘(c) APPLICATIONS.— conduct occurs in the special maritime and ‘‘(ii) 3.1 percent; or ‘‘(1) IN GENERAL.—In order to be eligible to territorial jurisdiction of the United States ‘‘(B) 9.0 percent. be awarded a grant under this section for or in a Federal prison and includes both as- ‘‘(4) CONSOLIDATION LOANS.—With respect any fiscal year, an institution of higher edu- saults committed by offenders who are to any consolidation loan under section 428C cation shall submit an application to the strangers to the victim and assaults commit- for which the application is received by an Secretary at such time and in such manner ted by offenders who are known or related by eligible lender on or after October 1, 1998, the as the Secretary shall prescribe. blood or marriage to the victim; and applicable rate of interest shall be at an an- ‘‘(2) CONTENTS.—Each application submit- ‘‘(3) the term ‘victim services’ means a nual rate on the unpaid principal balance of ted under paragraph (1) shall— nonprofit, nongovernmental organization the loan that is equal to the lesser of— ‘‘(A) describe the need for grant funds and that assists domestic violence or sexual as- ‘‘(A) the weighted average of the interest the plan for implementation for any of the sault victims, including campus women’s rates on the loans consolidated, rounded to purposes described in subsection (b); centers, rape crisis centers, battered wom- the nearest higher one-eighth of one percent; ‘‘(B) describe how the campus authorities en’s shelters, and other sexual assault or do- or shall consult and coordinate with nonprofit mestic violence programs including campus ‘‘(B) 8.25 percent. and other victim services programs, includ- counseling support and victim advocate or- Page 154, line 8, after ‘‘paragraph,’’ insert ing sexual assault and domestic violence vic- ganizations with domestic violence, stalk- ‘‘and except as provided in subparagraph tim services programs; ing, and sexual assault programs, whether or (B),’’. ‘‘(C) provide measurable goals and ex- not organized and staffed by students. Page 155, line 10, strike ‘‘clause (iv)’’ and pected results from the use of the grants ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— insert ‘‘clause (v)’’. funds; For the purpose of carrying out this part, Page 155, strike lines 12 through 23 and in- ‘‘(D) provide assurances that the Federal there are authorized to be appropriated sert the following: funds made available under this section shall $10,000,000 for fiscal year 1999 and such sums ‘‘(iv) CONSOLIDATION LOANS.—In the case of be used to supplement and, to the extent as may be necessary for each of the 4 suc- any consolidation loan for which the applica- practical, increase the level of funds that ceeding fiscal years.’’. tion is received by an eligible lender on or H2530 CONGRESSIONAL RECORD — HOUSE April 29, 1998 after October 1, 1998, and for which the appli- ‘‘(iv) when the borrower defaults. SEC. 452. SIMPLIFIED NEEDS TEST; ZERO EX- cable interest rate is determined under sec- Such capitalization of interest shall not be PECTED FAMILY CONTRIBUTION. tion 427A(a)(4), clause (i)(III) of this subpara- deemed to exceed the annual insurable limit Section 479 is amended— graph shall be applied by substituting ‘3.1 on account of the student.’’. (1) in subsection (b)(3)— percent’ for ‘2.8 percent’, subject to clause Page 176, line 5, insert ‘‘in accordance’’ (A) in the matter preceding subparagraph (v) of this subparagraph. after ‘‘note’’. (A), by striking ‘‘this paragraph’’ and insert- ‘‘(v) LIMITATION ON SPECIAL ALLOWANCES Page 184, after line 16, insert the following ing ‘‘this subsection, or subsection (c), as the FOR PLUS AND CONSOLIDATION LOANS.—In the new subsections: case may be,’’; (d) DEFINITION OF DEFAULT.— case of PLUS loans made under section 428B (B) in subparagraph (A), by striking ‘‘or’’ (1) AMENDMENT.—Section 435(l) is amend- and disbursed on or after July 1, 1998, for at the end thereof; ed— which the interest rate is determined under (C) by redesignating subparagraph (B) as (A) by striking ‘‘180 days’’ and inserting 427A(a)(3), a special allowance shall not be subparagraph (C); and ‘‘270 days’’; and paid for such loan unless the rate determined (D) by inserting after subparagraph (A) the (B) by striking ‘‘240 days’’ and inserting under subparagraph (A) of such section following new subparagraph: ‘‘330 days’’. (without regard to subparagraph (B) of such ‘‘(B) a form 1040 (including any prepared or (2) EFFECTIVE DATE.—The amendment section) exceeds 9.0 percent. In the case of electronic version of such form) required made by paragraph (1) shall apply with re- consolidation loans made under section 428C pursuant to the Internal Revenue Code of spect to loans for which the first day of de- for which the application is received by an 1986, except that such form shall be consid- linquency occurs on or after the date of en- eligible lender on or after October 1, 1998, ered a qualifying form only if the student or actment of this Act. and for which the applicable interest rate is family files such form in order to take a tax (e) COHORT DEFAULT RATE: REHABILITA- determined under section 427A(a)(4), a spe- credit under section 25A of the Internal Rev- TION.—Section 435(m)(2)(C) is amended by cial allowance shall not be paid for such loan enue Code of 1986, and would otherwise be el- unless the rate determined under subpara- adding at the end the following new sen- tences: ‘‘Within 2 years after the date of en- igible to file a form described in subpara- graph (A) of such section (without regard to actment of the Higher Education Amend- graph(A); or’’; subparagraph (B) of such section) exceeds ments of 1998, the Secretary shall, by regula- (2) in subsection (c)— 8.25 percent.’’. tion, require guaranty agencies to collect (A) by amending paragraph (1)(A) to read (2) CONSOLIDATION LOANS.—Section data with respect to defaulted loans in a as follows: 428C(c)(1) (20 U.S.C. 1078–3) is amended— manner that will permit the identification of ‘‘(A) the student’s parents file, or are eligi- (A) by striking everything preceding sub- any defaulted loan for which (i) the borrower ble to file, a form described in subsection paragraph (D) and inserting the following: is currently making payments and has made (b)(3), or certify that they are not required ‘‘(1) INTEREST RATE.—(A) Except as pro- not less than 6 consecutive on-time pay- to file an income tax return and the student vided in subparagraph (B), with respect to ments by the end of such following fiscal files, or is eligible to file, such a form, or any loan made under this section for which year, and (ii) a guaranty agency has renewed certifies that the student is not required to the application is received by an eligible the borrower’s title IV eligibility as provided file an income tax return; and’’; and lender on or after October 1, 1998, the appli- in section 428F(b). Upon a determination by (B) by amending paragraph (2)(A) to read cable interest rate shall be determined under the Secretary that such data is available, as follows: section 427A(a)(4).’’; and the Secretary shall, by regulation, prescribe ‘‘(A) the student (and the student’s spouse, (B) by redesignating subparagraph (D) as the extent to which any such defaulted loan if any) files, or is eligible to file, a form de- subparagraph (B). may be excluded from the calculation of the scribed in subsection (b)(3), or certifies that (3) CONFORMING AMENDMENT.—Section cohort default rate under this subsection.’’. the student (and the student’s spouse, if any) 438(b)(2)(C)(ii) is amended by striking ‘‘In the Page 184, beginning on line 18, strike sub- is not required to file an income tax return; case’’ and inserting ‘‘Subject to subpara- section (a) through line 22 (and redesignate and’’. graph (F), in the case’’. the succeeding subsections accordingly). Page 231, line 15, strike ‘‘and’’, and after Page 156, strike line 21 and all that follows Page 184, line 23, strike ‘‘(b) DISCHARGE.—’’. through page 157, line 5, and insert the fol- such line insert the following new subpara- Page 203, after line 2, insert the following graph (and redesignate the succeeding sub- lowing: new paragraph (and redesignate the succeed- paragraph accordingly): that sets forth a schedule for disbursement ing paragraphs accordingly): (C) by striking the second sentence and in- of the proceeds of the loan in installments, ‘‘(4) CONSOLIDATION LOANS.—Any Federal serting the following: ‘‘The Secretary shall consistent with the requirements of section Direct Consolidation loan for which the ap- include on the form developed under this 428G. plication is received on or after October 1, subsection such data items as the Secretary Page 157, line 6, strike ‘‘clause (ii) of’’. 1998, shall bear interest at an annual rate on determines are appropriate for inclusion, se- Page 164, strike lines 21 and 22 and insert the unpaid principal balance of the loan that lected in consultation with States to assist the following: is equal to the lesser of— in the awarding of State financial assistance, ‘‘(2) LIMITATIONS ON BLANKET CERTIFICATE ‘‘(i) the weighted average of the interest except that in no case shall the number of OF GUARANTY.—(A) An eligible lender may rates on the loans consolidated, rounded to such data items be less than the number in- not make a loan to a borrower under this the nearest higher one-eighth of one percent; cluded on the form on the date of enactment section after such lender receives a notifica- or of the Higher Education Amendments of tion from the guaranty agency that the bor- ‘‘(ii) 8.25 percent. 1998.’’; and rower is not an eligible borrower. Page 203, line 23, strike ‘‘The amendments’’ ‘‘(B) A guaranty agency and eligible lender and insert ‘‘Except as otherwise provided Page 232, line 12, strike ‘‘graph’’ and insert Page 171, strike line 23 and all that follows therein, the amendments’’. ‘‘graphs’’. through page 172, line 6, and insert the fol- Page 220, line 14, strike ‘‘and’’ and after Page 233, strike lines 6 through 18, and on lowing: line 14 insert the following new subparagraph line 19, strike ‘‘No fee shall’’ and insert the statement that sets forth a schedule for dis- (and redesignate the succeeding subpara- following: bursement of the proceeds of the loan in in- graph accordingly): ‘‘(C) No fee shall stallments, consistent with the requirements (F) in paragraph (3)(A)(i), by striking ‘‘(H), Page 234, line 17, strike the close quotation of section 428G.’’. or (I)’’ and inserting ‘‘(H), (I), (J), or (K)’’; marks and following period and after such Page 172, after line 22, insert the following and new subsection (and redesignate the succeed- Page 224, strike lines 15 though 21 and in- line insert the following new paragraph: ing subsections accordingly): sert the following: ‘‘(6) SUPPORT TO THIRD PARTY SERVICERS (c) CAPITALIZATION OF INTEREST.—Section ‘‘(6) ALLOWANCE FOR PARENTS’ NEGATIVE AD- AND PRIVATE SOFTWARE PROVIDERS.—The Sec- 428H(e)(2) is amended to read as follows: JUSTED AVAILABLE INCOME.—The allowance retary shall support private organizations ‘‘(2) CAPITALIZATION OF INTEREST.—Interest for parents’ negative adjusted available in- and consortia thereof in the development of on loans made under this section for which come is the amount, if any, by which the software used by eligible institutions for the payments of principal are not required dur- sum of the amounts deducted under subpara- administration of funds under this title. The ing the in-school and grace periods or for graphs (A) through (F) of paragraph (2) ex- Secretary shall provide in a timely manner which payments are deferred under sections ceeds the sum of the parents’ total income to such organizations and consortia all nec- 427(a)(2)(C) and 428(b)(1)(M) shall, if agreed (as defined in section 480) and the family essary specifications that data and software upon by the borrower and the lender— contribution from assets (as determined in developed, produced, and distributed (includ- ‘‘(A) be paid monthly or quarterly; or accordance with subsection (c).’’. ing any diskette, modem, or network com- ‘‘(B) be added to the principal amount of Page 227, line 17, strike ‘‘1997–1998’’ and in- munications) must meet. These specifica- the loan by the lender only— sert ‘‘1999–2000’’. tions shall contain record layouts for re- ‘‘(i) when the loan enters repayment; Page 227, line 25, strike ‘‘1996’’ and insert quired data and test cases that such organi- ‘‘(ii) at the expiration of a grace period, in ‘‘1998’’. zations or consortia may use to test the ac- the case of a loan that qualifies for a grace Page 228, after line 2, insert the following curacy of its software. The Secretary shall period; new section (and redesignate the succeeding develop in advance of each processing cycle ‘‘(iii) at the expiration of a period of sections and conform the table of contents an annual schedule for providing such speci- deferment; and accordingly): fications. The Secretary shall, to the extent April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2531 practicable, use means of providing such sup- Page 306, strike line 14, and insert the fol- (3) any employer other than an institution port, including conferences and other meet- lowing: ‘‘this part for’’. of higher education (as defined in section ings, outreach, and technical support mecha- Page 335, after line 15, insert the following 1201(a) of the Higher Education Act of 1965). nisms (including telephone support, training new section (and conform the table of con- (d) EFFECTIVE DATE.— and printed reference materials). The Sec- tents accordingly): (1) IN GENERAL.—This section shall take ef- retary shall, from time to time, solicit from SEC. 808. PROCEDURES FOR CANCELLATIONS fect on the date of enactment of this Act. such organizations and consortia means of AND DEFERMENTS FOR ELIGIBLE (2) EFFECT ON CAUSES OF ACTION EXISTING improving the support provided by the Sec- DISABLED VETERANS. BEFORE DATE OF ENACTMENT.—The amend- retary.’’. The Secretary shall, in consultation with ment made by subsection (a) shall not apply Page 235, line 12, strike ‘‘and’’; on line 17, the Secretary of Veterans Affairs, develop with respect to any cause of action arising strike the period and insert ‘‘; and’’; and and implement a procedure under which De- under the Age Discrimination in Employ- after line 17 insert the following new para- partment of Veterans Affairs physicians ment Act of 1967 prior to the date of enact- graph: shall provide the certification and affidavits ment of this Act. (3) in paragraph (5), by striking ‘‘Trust needed to enable eligible disabled veterans to The CHAIRMAN. Pursuant to the Territory of the Pacific Islands’’ and insert- document their eligibility for deferments rule, the gentleman from Pennsylvania ing ‘‘the Federated States of Micronesia, the and cancellations of student loans made, in- Republic of the Marshall Islands, or the Re- sured, or guaranteed under this title. Not (Mr. GOODLING) and a Member opposed public of Palau’’. later than 6 months after the date of the en- each will control 10 minutes. Page 235, strike lines 18 through 20 and in- actment of this Act, the Secretaries of Edu- The Chair recognizes the gentleman sert the following: cation and Veterans Affairs shall jointly re- from Pennsylvania (Mr. GOODLING). (b) TERMINATION OF ELIGIBILITY.—Section port to Congress on the progress made in de- Mr. GOODLING. Mr. Chairman, I 484(j) is amended to read as follows: veloping and implementing this procedure. yield myself such time as I may con- ‘‘(j) ASSISTANCE UNDER SUBPARTS 1 AND 3, Page 345, beginning on line 9, strike sub- sume. OF PART A, AND PART C.—Notwithstanding section (c) (and redesignate the succeeding Mr. Chairman, the manager’s amend- any other provision of law, a student shall be subsections accordingly). eligible until September 30, 2001, if otherwise Page 347, beginning on line 1, strike title X ment makes several significant qualified, for assistance under subparts 1 and and insert the following: changes to H.R. 6 as reported by the 3 of part A, and part C, of this title, if the TITLE X—FACULTY RETIREMENT committee. We did not stop working student is otherwise qualified and— PROVISIONS after we voted this out of committee. ‘‘(1) is a citizen of the Federated States of SEC. 1001. VOLUNTARY RETIREMENT INCENTIVE We continued working to try to iron Micronesia, the Republic of the Marshall Is- out some differences that had arisen lands, or the Republic of Palau, and attends PLANS. an institution of higher education in Guam (a) IN GENERAL.—Section 4 of the Age Dis- during the markup. or a public or nonprofit private institution of crimination in Employment Act of 1967 (29 The amendment reflects a bipartisan higher education in the Federated States of U.S.C. 623) is amended by adding at the end agreement with respect to an issue in Micronesia, the Republic of the Marshall Is- the following: which Members on both sides of the lands, or the Republic of Palau; or ‘‘(m) Notwithstanding subsection (f)(2)(B), aisle have expressed much concern, the it shall not be a violation of subsection (a), ‘‘(2) meets the requirements of subsection quality of our Nation’s teachers. It is (a)(5) and attends a public or nonprofit pri- (b), (c), or (e) solely because a plan of an in- stitution of higher education (as defined in alarming to find that nearly one-third vate institution of higher education in the of all high school math teachers and Federated States of Micronesia, the Republic section 1201(a) of the Higher Education Act of the Marshall Islands, or the Republic of of 1965 (20 U.S.C. 1141(a))) offers employees over one-fifth of all high school Palau.’’. who are serving under a contract of unlim- English teachers in this country have Page 236, line 2, after ‘‘income,’’ insert ited tenure (or similar arrangement provid- neither majored nor minored in those ‘‘Federal income taxes paid,’’. ing for unlimited tenure) supplemental bene- subjects. It is our intent to provide Page 245, line 17, strike the close quotation fits upon voluntary retirement that are re- support to efforts that many States duced or eliminated on the basis of age, if— marks and following period and after such have begun to undertake to improve line insert the following: ‘‘(1) such institution does not implement ‘‘(10) Nothing in this section shall require with respect to such employees any age- the quality and ability of classroom the reporting or disclosure of privileged in- based reduction or cessation of benefits that teachers, beginning with the institu- formation.’’. are not such supplemental benefits, except as tion at which many of these teachers Page 252, line 16, after the period insert the permitted by other provisions of this Act; are prepared. following: ‘‘(2) such supplemental benefits are in ad- Provisions that were worked out in a Each application shall include— dition to any retirement or severance bene- bipartisan manner which are now part ‘‘(1) a description of the institution or con- fits which have been offered generally to em- of this amendment include: an in- sortium’s consultation with a recognized ac- ployees serving under a contract of unlim- creased emphasis on partnerships con- ited tenure (or similar arrangement provid- crediting agency or association with respect sisting of a Governor of a participating to quality assurances for the distance edu- ing for unlimited tenure), independent of any cation programs to be offered; early retirement or exit-incentive plan, State, exemplary schools of education ‘‘(2) a description of the statutory and reg- within the preceding 365 days; and and local educational agencies; focus- ulatory requirements described in subsection ‘‘(3) any employee who attains the mini- ing the teacher recruitment provisions (b)(2) for which a waiver is sought and the mum age and satisfies all non-age-based con- on those schools most in need of qual- reasons for which the waiver is sought; ditions for receiving a benefit under the plan ity teachers, such as in poor urban and ‘‘(3) a description of the distance education has an opportunity lasting not less than 180 rural areas; and including a trigger to programs to be offered; days to elect to retire and to receive the change this program from a competi- maximum benefit that could then be elected ‘‘(4) a description of the students to whom tive to a formula grant program if ap- distance education programs will be offered; by a younger but otherwise similarly situ- ‘‘(5) an assurance that the institution or ated employee, and the plan does not require propriations are over $250 million. consortium will offer full cooperation with retirement to occur sooner than 180 days I look forward to the support of my the ongoing evaluations of the demonstra- after such election.’’. colleagues for this compromise so that tion program provided for in this section; (b) PLANS PERMITTED.—Section 4(i)(6) of we can help States really reform teach- and the Age Discrimination in Employment Act er preparation programs and provide ‘‘(6) such other information as the Sec- of 1967 (29 U.S.C. 623(i)(6)) is amended by add- high-quality teachers for all of our retary may require. ing after the word ‘‘accruals’’ the following: States. ‘‘or it is a plan permitted by subsection Page 252, line 18, insert ‘‘of’’ after ‘‘sam- This amendment also includes a pro- ple’’. (m).’’ Page 253, strike lines 9 and 10 and insert (c) CONSTRUCTION.—Nothing in the amend- gram to provide grants to combat vio- the following: ment made by subsection (a) shall affect the lent crimes against women on college ‘‘(A) the extent to which the institution or application of section 4 of the Age Discrimi- campuses, which was discussed by the consortia of institutions has met the goals nation in Employment Act of 1967 (29 U.S.C. committee during the markup. The set forth in its application to the Secretary, 623) with respect to— program authorizes the Secretary of including the measures of program quality (1) any plan described in subsection (m) of Education to provide grant assistance assurance; section 4 of such Act (as added by subsection to institutions of higher education for Page 262, line 15, insert ‘‘and’’ after the (a)), for any period prior to enactment of semicolon, and strike lines 16 through 20 and such Act; use in providing training to adminis- insert the following: (2) any plan not described in subsection (m) trators, security personnel, campus (I) by striking ‘‘(J), and (L)’’ and inserting of section 4 of such Act (as added by sub- personnel and student organizations in ‘‘and (K)’’; section (a)); or order to strengthen security measures H2532 CONGRESSIONAL RECORD — HOUSE April 29, 1998 and improve victim services for women that the authorizers intend that this be to ensure that this amendment was in- who are victims of violent crimes. a major teacher initiative. The provi- corporated in H.R. 6 through the man- However, institutions that fail to com- sion that partnerships involving insti- ager’s amendment. ply with the current campus crime re- tutions of higher education and local Mr. KILDEE. Mr. Chairman, I yield 2 porting requirements found in the education agencies receive one-third of minutes to the gentleman from New Higher Education Act will not be eligi- the funds means that we will have a Jersey (Mr. ANDREWS). ble for any assistance under this pro- ‘‘ground up’’ reform not only of teach- (Mr. ANDREWS asked and was given gram. ing but also in the recruitment of permission to revise and extend his re- We have made modifications to the teachers. marks.) development of the Free Application The emphasis on serving school dis- Mr. ANDREWS. Mr. Chairman, I for Federal Student Aid that were re- tricts with a high level of poverty, low would like to thank the ranking mem- quested by States in order to ensure teacher retention rates or a high per- ber for yielding this time to me, and I that data items necessary to assist centage of teachers teaching outside rise in support of the manager’s States in the awarding of State finan- their specialization means we will be amendment. cial assistance are included on the focusing funds on those areas most in I would like to thank the chairman form. need. and the subcommittee chairman and We have established interest rates for The new grant program to combat the ranking members for their coopera- consolidation loans made on or after violent crimes against women in col- tion in solving what I believe is a sig- October 1, 1998, that will provide bor- lege campuses is a very important pro- nificant problem with respect to the rowers with an interest rate based on vision. I commend the gentlewoman age discrimination law by including in the weighted average of their loans from California (Ms. WOOLSEY) for her the manager’s amendment an excellent consolidated, capped at a maximum deep commitment to this issue and for provision which will permit institu- rate of 8.25 percent. This new rate will her persistence in seeing it through to tions around the country to offer early afford students additional interest rate a most successful conclusion. retirement incentive packages to mem- relief, particularly for those students The loan consolidation provision will bers of the faculty at those univer- who borrow Stafford loans at the new give students the ability to consolidate sities. rate of 91-day Treasury bill plus 2.3 per- their outstanding loans at a weighted I think this is an excellent piece of cent and consolidate those with other interest rate not to exceed 8.25 percent. legislation that accomplishes three im- loans at higher interest rates. While these provisions could be im- portant objectives. The amendment establishes clear ap- proved, they undoubtedly represent a First of all, it is very fair and bal- plication requirements for institutions considerable improvement over current anced and treats the members of the of higher education that wish to offer law. faculty in a very fair and evenhanded expanded distance education programs We have also significantly improved way. It is very important to note that to students. The application require- the faculty retirement provisions. everyone under this plan will receive ments are designed to ensure that stu- They now enjoy the support of both the full health benefits, and it is purely dents are being provided quality edu- college community and organizations voluntary with respect to participa- cation through distance education pro- representing retired persons. These tion. gram. provisions have required a considerable Second, this is an important cost- Finally, the amendment includes off- amount of work and give and take, and saving mechanism for universities and sets from the Committee on Education I am exceptionally pleased at the re- institutions around the country. I be- and the Workforce jurisdiction needed sult. lieve it is a very solid first step toward in order to bring H.R. 6 to the floor and Mr. Chairman, I urge the passage of the goal of the gentleman from Califor- provide Members with an assurance the the manager’s amendment. nia (Mr. MCKEON) of trying to make bill will be budget neutral. Mr. Chairman, I reserve the balance college more affordable by addressing I want to thank the gentleman from of my time. the issue of college cost inflation. Georgia (Mr. GINGRICH), the gentleman Mr. GOODLING. Mr. Chairman, I Third, I believe that this is an impor- from Texas (Mr. ARMEY) and the gen- yield back the balance of my time. tant mechanism for the recruitment of tleman from Ohio (Mr. KASICH) for Mr. KILDEE. Mr. Chairman, I yield 1 new young faculty. Particularly, I be- their cooperation in this effort. With- minute to the gentleman from Virginia lieve this will open the tenure track to out their assistance, it would have (Mr. SCOTT). many women and minority faculty who been impossible for us to be here today Mr. SCOTT. Mr. Chairman, I would have not had the opportunity to ad- talking about a bill to provide students like to thank my friend from Michigan vance up through the ranks in prior the lowest interest rates in 17 years. for yielding this time to me, and I want years. There are many more technical to express my thanks to the chairman In summation, Mr. Chairman, I changes and corrections that I will not and ranking members of the full com- would like to thank those who have review in detail. I want to thank my mittee and subcommittee for agreeing worked with us on making this provi- colleagues on the other side of the aisle to include in the manager’s amend- sion a reality, and I urge support of for their hard work and cooperation in ment an amendment I offered during this amendment in its entirety. putting this package of amendments full committee consideration. This Mr. KILDEE. Mr. Chairman, I urge a together, and I urge its adoption. amendment will help improve the accu- yes vote, and I yield back the balance Mr. Chairman, I reserve the balance racy and reliability of student loan of my time. of my time. data and further reduce the rate of stu- The CHAIRMAN. All time has ex- Mr. KILDEE. Mr. Chairman, I yield dent loan defaults. pired. myself such time as I may consume. Many schools have made progress in The question is on the amendment Mr. Chairman, I rise to urge my col- decreasing the rate of loan defaults. offered by the gentleman from Penn- leagues to join me in supporting the My amendment will encourage more sylvania (Mr. GOODLING). manager’s amendment that is now be- vigorous efforts by schools and the The amendment was agreed to. fore us. lending community to bring defaulters The CHAIRMAN. The Chair an- Mr. Chairman, this amendment back into repayment status through a nounces that there are four sections makes several changes that signifi- process called loan rehabilitation. The preceding title I. cantly improve the bill as it was re- result will be that more schools will be The Clerk will designate section 1. ported out of committee. The changes able to participate in the loan program The text of section 1 is as follows: in the Teacher Quality Enhancement and more students will be able to Be it enacted by the Senate and House of Rep- Grants are especially important. achieve their dreams by attending col- resentatives of the United States of America in The overall authorization of such lege. Congress assembled, sums and the provision that the pro- Mr. Chairman, I want to thank our SECTION 1. SHORT TITLE. gram will become a State grant when committee leadership for accommodat- This Act may be cited as the ‘‘Higher Edu- appropriations reach $250 million mean ing this request and working with me cation Amendments of 1998’’. April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2533 The CHAIRMAN. Are there any PART C—FEDERAL WORK-STUDY PROGRAMS Sec. 804. Differential regulation. amendments to section 1? Sec. 435. Amendments to part C. Sec. 805. Annual report on cost of higher edu- cation. If not, the Clerk will designate sec- PART D—WILLIAM D. FORD FEDERAL DIRECT Sec. 806. Repeals of previous higher education tion 2. LOAN PROGRAM amendments provisions. The text of section 2 is as follows: Sec. 436. Selection of institutions. Sec. 807. Limitation. SEC. 2. TABLE OF CONTENTS. Sec. 437. Terms and conditions. TITLE IX—AMENDMENTS TO OTHER LAWS The table of contents for this Act is as follows: Sec. 438. Contracts. PART A—EDUCATION OF THE DEAF ACT Sec. 1. Short title. Sec. 439. Funds for administrative expenses. Sec. 2. Table of contents. Sec. 440. Authority to sell loans. SUBPART 1—GALLAUDET UNIVERSITY Sec. 3. References. Sec. 441. Cancellation of loans for certain pub- Sec. 901. Board of Trustees membership. Sec. 4. General effective date. lic service. Sec. 902. Elementary and secondary education TITLE I—GENERAL PROVISIONS PART E—FEDERAL PERKINS LOANS programs. Sec. 903. Agreement with Gallaudet University. PART A—EXTENSION AND REVISION OF GENERAL Sec. 445. Amendments to part E. SUBPART 2—NATIONAL INSTITUTE FOR THE DEAF PROVISIONS PART F—NEED ANALYSIS Sec. 911. Agreement for the National Technical Sec. 101. Redesignation and transfer of provi- Sec. 446. Cost of attendance. Institute for the Deaf. sions. Sec. 447. Data elements. Sec. 102. Definitions. Sec. 448. Family contribution for dependent SUBPART 3—GENERAL PROVISIONS Sec. 103. Regulatory reform. students. Sec. 921. Definitions. Sec. 922. Audits. PART B—PERFORMANCE-BASED ORGANIZATION Sec. 449. Family contribution for independent Sec. 923. Reports. FOR THE DELIVERY OF FEDERAL STUDENT FI- students without dependents Sec. 924. Monitoring, evaluation, and reporting. NANCIAL ASSISTANCE. other than a spouse. Sec. 450. Family contribution for independent Sec. 925. Responsibility of the liaison. Sec. 111. Performance-based organization for students with dependents other Sec. 926. Federal endowment programs. the delivery of Federal student fi- than a spouse. Sec. 927. Scholarship program. nancial assistance. Sec. 451. Regulations; updated tables and Sec. 928. Oversight and effect of agreements. TITLE II—POSTSECONDARY EDUCATION amounts. Sec. 929. International students. IMPROVEMENT PROGRAMS Sec. 452. Discretion of student financial aid ad- Sec. 930. Authorization of appropriations. Sec. 201. Urban community service. ministrators. PART B—EXTENSION AND REVISION OF INDIAN Sec. 202. Fund for the Improvement of Post- Sec. 453. Treatment of other financial assist- HIGHER EDUCATION PROGRAMS secondary Education. ance. Sec. 951. Tribally controlled colleges and uni- Sec. 203. Grants to States for workplace and PART G—GENERAL PROVISIONS versities. community transition training for Sec. 952. Reauthorization of provisions from incarcerated youth offenders. Sec. 461. Definitions. Higher Education Amendments of Sec. 204. Advanced placement fee payment pro- Sec. 462. Master calendar. 1992. gram. Sec. 463. Forms and regulations. Sec. 953. Reauthorization of Navajo Community Sec. 205. Teacher quality enhancement grants. Sec. 464. Student eligibility. College Act. Sec. 206. Additional repeal. Sec. 465. State court judgments. Sec. 466. Information for students. TITLE III—INSTITUTIONAL AID TITLE X—FACULTY RETIREMENT Sec. 467. National student loan data system. PROVISIONS Sec. 301. Strengthening institutions. Sec. 468. Program participation agreements. Sec. 1001. Voluntary retirement incentive plans. Sec. 302. Historically black colleges and univer- Sec. 469. Quality assurance and regulatory sim- sities. plification. The CHAIRMAN. Are there any Sec. 303. Minority science and engineering im- Sec. 470. Distance education demonstration pro- amendments to section 2? provement program. grams. If not, the Clerk will designate sec- Sec. 304. General provisions. Sec. 471. Garnishment requirements. tion 3. TITLE IV—STUDENT ASSISTANCE Sec. 472. Administrative subpoena authority. The text of section 3 is as follows: PART A—GRANTS TO STUDENTS Sec. 473. Advisory committee on student finan- cial assistance. SEC. 3. REFERENCES. Sec. 401. Pell grants. Sec. 474. Meetings and negotiated rulemaking. Except as otherwise expressly provided, when- Sec. 402. Federal TRIO programs. ever in this Act an amendment or repeal is ex- ART H—PROGRAM INTEGRITY Sec. 403. National early intervention and part- P pressed in terms of an amendment to, or repeal nership program. Sec. 476. State postsecondary review program. of, a section or other provision, the reference Sec. 404. Repeals. Sec. 477. Accrediting agency recognition. shall be considered to be made to a section or Sec. 405. Establishment of new programs. Sec. 478. Eligibility and certification proce- other provision of the Higher Education Act of Sec. 406. Federal supplemental educational op- dures. 1965 (20 U.S.C. 1001 et seq.). portunity grants. Sec. 479. Program review and data. The CHAIRMAN. Are there any Sec. 407. Grants to States for State student in- TITLE V—DEVELOPING INSTITUTIONS centives. amendments to section 3? Sec. 501. Establishment of new title V. Sec. 408. Special programs for students whose If not, the Clerk will designate sec- families are engaged in migrant TITLE VI—INTERNATIONAL AND tion 4. and seasonal farmwork. GRADUATE EDUCATION PROGRAMS The text of section 4 is as follows: Sec. 409. Byrd scholarships. Sec. 601. International and foreign language SEC. 4. GENERAL EFFECTIVE DATE. PART B—FEDERAL FAMILY EDUCATION LOAN studies. Except as otherwise provided in this Act or PROGRAM Sec. 602. Business and international education the amendments made by this Act, the amend- Sec. 411. Limitation repealed. programs. ments made by this Act shall take effect on Oc- Sec. 412. Advances to reserve funds. Sec. 603. Institute for international public pol- tober 1, 1998. icy. Sec. 413. Guaranty agency reforms. The CHAIRMAN. Are there any Sec. 414. Scope and duration of program. Sec. 604. General provisions. Sec. 415. Limitations on individual federally in- Sec. 605. Transfer and reauthorization of grad- amendments to section 4? sured loans and Federal loan in- uate assistance in areas of na- If not, the Clerk will designate title surance. tional need program. I. Sec. 416. Applicable interest rates. TITLE VII—CONSTRUCTION, RECONSTRUC- The text of title I is as follows: Sec. 417. Federally guaranteed student loans. TION, AND RENOVATION OF ACADEMIC TITLE I—GENERAL PROVISIONS Sec. 418. Voluntary agreements with guaranty FACILITIES agencies. PART A—EXTENSION AND REVISION OF Sec. 701. Extension of prior rights and obliga- GENERAL PROVISIONS Sec. 419. Federal consolidation loans. tions. Sec. 420. Disbursement. Sec. 702. Repeal of part A. SEC. 101. REDESIGNATION AND TRANSFER OF PROVISIONS. Sec. 421. Unsubsidized Stafford loans. Sec. 703. Extension of authorization of part B. (a) IN GENERAL.— Sec. 422. Repeal of loan forgiveness. Sec. 704. Extension of authorization of part C. Sec. 423. Legal powers and responsibilities. (1) REPEAL OF TITLE I.—Title I (20 U.S.C. 1001 Sec. 424. Student loan information. TITLE VIII—ADDITIONAL PROVISIONS et seq.) is repealed. Sec. 425. Definitions. Sec. 801. Study of transfer of credits. (2) REPEAL OF TITLE XII PROVISIONS.—The fol- Sec. 426. Discharge. Sec. 802. Study of market mechanisms in Fed- lowing sections of title XII are repealed: sections Sec. 427. Cancellation of loans for certain pub- eral student loan programs. 1206, 1211, and 1212 (20 U.S.C. 1145a, 1145e, lic service. Sec. 803. Improvements in market information 1145f). Sec. 428. Debt management options. and public accountability in high- (3) REDESIGNATIONS.— Sec. 429. Special allowances. er education. (A) Title XII is redesignated as title I. H2534 CONGRESSIONAL RECORD — HOUSE April 29, 1998

(B) Sections 1201, 1202, and 1203 (20 U.S.C. (10) FOLLOW THROUGH ACT.—Section 670G(5) serting ‘‘101(a)(1) of the Higher Education Act 1141, 1142, 1143) are redesignated as sections 101, of the Follow Through Act (42 U.S.C. 9877(5)) is of 1965’’. 102, and 103, respectively. amended by striking ‘‘1201 of the Higher Edu- (24) NATIONAL DEFENSE AUTHORIZATION ACT (C) Section 1204(b), as redesignated by section cation Act of 1965’’ and inserting ‘‘101(a)(1) of FOR FISCAL YEARS 1992 AND 1993.—Section 251 of the Higher Education Amendments of 1968 the Higher Education Act of 1965’’. 3132(b)(1) of the National Defense Authorization (20 U.S.C. 1144(b); 82 Stat. 1042), is redesignated (11) FOOD AND AGRICULTURE ACT OF 1977.—Sec- Act for Fiscal Years 1992 and 1993 (42 U.S.C. as section 104. tion 1417(h)(1)(A) of the Food and Agriculture 7274e(b)(1)) is amended by striking ‘‘1201(a) of (D) Section 1204, as added by section 1201 of Act of 1977 (7 U.S.C. 3152(h)(1)(A)) is amended the Higher Education Act of 1965 (20 U.S.C. the Education Amendments of 1980 (20 U.S.C. by striking ‘‘1201(a) of the Higher Education Act 1141(a))’’ and inserting ‘‘101(a)(1) of the Higher 1144a; 94 Stat. 1495), is redesignated as section of 1965 (20 U.S.C. 1141(a))’’ and inserting Education Act of 1965’’. 105. ‘‘101(a)(1) of the Higher Education Act of 1965’’. (25) NATIONAL DEFENSE AUTHORIZATION ACT (E) Sections 1205, 1207, 1208, 1209, 1210, and (12) FOREIGN RELATIONS AUTHORIZATION ACT, FOR FISCAL YEAR 1994.—The National Defense 1213 (20 U.S.C. 1145, 1145b, 1145c, 1145d, 1145d- FISCAL YEARS 1986 AND 1987.—Section 603(d) of the Authorization Act for Fiscal Year 1994 is 1, and 1145g) are redesignated as sections 106 Foreign Relations Authorization Act, Fiscal amended— through 111, respectively. Years 1986 and 1987 (20 U.S.C. 4703(d)) is (A) in section 841(c)(2) (10 U.S.C. 2324(2) (4) TRANSFER.—Title I (including sections 101 amended by striking ‘‘1201(a)’’ and inserting note), by striking ‘‘1201(a) of the Higher Edu- through 111), as redesignated by paragraph (3), ‘‘101(a)(1)’’. cation Act of 1965 (20 U.S.C. 1141(a))’’ and in- is transferred to immediately follow the short (13) GENERAL EDUCATION PROVISIONS ACT.— serting ‘‘101(a)(1) of the Higher Education Act title of the Higher Education Act of 1965 (20 Section 429(d)(2)(B)(ii) of the General Education of 1965’’; U.S.C. 1001 note). Provisions Act (20 U.S.C. 1228c(d)(2)(B)(ii)) is (B) in section 1333(i)(3) (10 U.S.C. 2701 note), (b) INTERNAL CROSS-REFERENCES.—The High- amended by striking ‘‘1201(a)’’ and inserting by striking ‘‘1201(a) of the Higher Education Act er Education Act of 1965 is amended— ‘‘101(a)(1)’’. of 1965 (20 U.S.C. 1141(a))’’ and inserting (1) in section 106 (as redesignated by sub- (14) HARRY S TRUMAN MEMORIAL SCHOLARSHIP ‘‘101(a)(1) of the Higher Education Act of 1965’’; section (a)(3)), by striking ‘‘481(a)’’ and insert- ACT.—Section 3(4) of the Harry S Truman Me- and ing ‘‘101(a)’’; morial Scholarship Act (20 U.S.C. 2002(4)) is (C) in section 1334(k)(3) (10 U.S.C. 2701 note), (2) in section 485(f)(1)(I), by striking ‘‘section amended by striking ‘‘1201(a)’’ and inserting by striking ‘‘1201(a) of the Higher Education Act 1213’’ and inserting ‘‘section 111’’; ‘‘101(a)(1)’’. of 1965 (20 U.S.C. 1141(a))’’ and inserting (3) in section 498(j)(2), by striking ‘‘section (15) HEAD START ACT.—Section 649(c)(3) of the ‘‘101(a)(1) of the Higher Education Act of 1965’’. 1201(a)(2)’’ and inserting ‘‘section 101(a)(2)’’; Head Start Act (42 U.S.C. 9844(c)(3)) is amended (26) NATIONAL EDUCATION STATISTICS ACT OF (4) in section 591(d)(2), by striking ‘‘section by striking ‘‘1201(a) of the Higher Education Act 1994.—Section 402(c)(3) of the National Edu- 1201(a)’’ and inserting ‘‘section 101(a)(1)’’; and of 1965 (20 U.S.C. 1141(a))’’ and inserting cation Statistics Act of 1994 (20 U.S.C. (5) in section 631(a)(8), by striking ‘‘section ‘‘101(a)(1) of the Higher Education Act of 1965’’. 9001(c)(3)) is amended by striking ‘‘1201(a)’’ and 1201(a)’’ each place it appears and inserting (16) HIGHER EDUCATION AMENDMENTS OF inserting ‘‘101(a)(1)’’. ‘‘section 101(a)(1)’’. 1992.—Section 1371(a)(1)(B) of the Higher Edu- (27) OLDER AMERICANS ACT OF 1965.—Section (c) CONFORMING AMENDMENTS.— cation Amendments of 1992 (25 U.S.C. 102(32) of the Older Americans Act of 1965 (42 (1) TITLE 10, UNITED STATES CODE.—Sections 3371(a)(1)(B)) is amended by striking ‘‘1201(a)’’ U.S.C. 3002(32)) is amended by striking ‘‘1201(a) 2193(c)(1) and 2199(2) of title 10, United States and inserting ‘‘101(a)(1)’’. of the Higher Education Act of 1965 (20 U.S.C. Code, are each amended by striking ‘‘1201(a) of (17) INTELLIGENCE AUTHORIZATION ACT, FISCAL 1141(a))’’ and inserting ‘‘101(a)(1) of the Higher the Higher Education Act of 1965 (20 U.S.C. YEAR 1992.—Section 808(3) of the Intelligence Au- Education Act of 1965’’. 1141(a))’’ and inserting ‘‘101(a)(1) of the Higher thorization Act, Fiscal Year 1992 (20 U.S.C. (28) OMNIBUS PARKS AND PUBLIC LANDS MAN- Education Act of 1965’’. 1908(3)) is amended by striking ‘‘1201(a) of the AGEMENT ACT OF 1996.—Section 1007(c)(5) of the (2) TITLE 18, UNITED STATES CODE.—Section Higher Education Act of 1965 (20 U.S.C. Omnibus Parks and Public Lands Management 207(j)(2)(B) of title 18, United States Code, is 1141(a))’’ and inserting ‘‘101(a)(1) of the Higher Act of 1996 (16 U.S.C. 698u–5) is amended by amended by striking ‘‘1201(a)’’ and inserting Education Act of 1965’’. striking ‘‘1201(a) of the Higher Education Act of ‘‘101(a)(1)’’. (18) JOB TRAINING PARTNERSHIP ACT.—The Job 1965 (20 U.S.C. 1141(a))’’ and inserting (3) TITLE 39, UNITED STATES CODE.—Section Training Partnership Act is amended— ‘‘101(a)(1) of the Higher Education Act of 1965’’. 3626(b)(3) of title 39, United States Code, is (A) in section 4(12) (29 U.S.C. 1503(12)), by (29) PUBLIC LAW 85 OF THE 67TH CONGRESS.— amended by striking ‘‘1201(a) of the Higher Edu- striking ‘‘1201(a)’’ and inserting ‘‘101(a)(1)’’; Public Law 85 of the 67th Congress (42 Stat. 208; cation Act of 1965 (20 U.S.C. 1141(a))’’ and in- and 25 U.S.C. 13), popularly referred to as the Sny- serting ‘‘101(a)(1) of the Higher Education Act (B) in section 141(d)(3)(B) (29 U.S.C. der Act, is amended by striking ‘‘1201’’ and in- of 1965’’. 1551(d)(3)(B)), by striking ‘‘1201(a) of the Higher serting ‘‘101(a)(1)’’. (4) ANTI-DRUG ABUSE ACT OF 1988.—Section Education Act of 1965 (20 U.S.C. 1141(a))’’ and (30) COMMUNICATION ACT OF 1934.—Section 3601(7) of the Anti-Drug Abuse Act of 1988 (42 inserting ‘‘101(a)(1) of the Higher Education Act 223(h)(4) of the Communication Act of 1934 (47 U.S.C. 11851(7)) is amended by striking ‘‘1201(a) of 1965’’. U.S.C. 223(h)(4)) is amended by striking ‘‘1201 of of the Higher Education Act of 1965 (20 U.S.C. (19) JUSTICE SYSTEM IMPROVEMENT ACT OF the Higher Education Act of 1965 (20 U.S.C. 1141(a))’’ and inserting ‘‘101(a)(1) of the Higher 1979.—Section 901(a)(17) of the Justice System 1141)’’ and inserting ‘‘101(a)(1) of the Higher Education Act of 1965’’. Improvement Act of 1979 (42 U.S.C. 3791(a)(17)) Education Act of 1965’’. (5) CRANSTON-GONZALEZ NATIONAL AFFORD- is amended by striking ‘‘1201(a) of the Higher (31) FEDERAL WATER POLLUTION CONTROL ABLE HOUSING ACT.—Section 457(9) of the Cran- Education Act of 1965 (20 U.S.C. 1141(a))’’ and ACT.—Section 112(a)(1) of the Federal Water ston-Gonzalez National Affordable Housing Act inserting ‘‘101(a)(1) of the Higher Education Act Pollution Control Act (33 U.S.C. 1262(a)(1)) is (42 U.S.C. 12899f(9)) is amended by striking of 1965’’. amended by striking ‘‘1201’’ and inserting ‘‘1201(a)’’ and inserting ‘‘101(a)(1)’’. (20) MUTUAL EDUCATIONAL AND CULTURAL EX- ‘‘101(a)(1)’’. (6) DEPARTMENT OF STATE AUTHORIZATION CHANGE ACT OF 1961.—Section 112(a)(8) of the (32) CARL D. PERKINS VOCATIONAL AND AP- ACT, FISCAL YEARS 1984 AND 1985.—Section 803(1) Mutual Educational and Cultural Exchange Act PLIED TECHNOLOGY EDUCATION ACT.—Section of the Department of State Authorization Act, of 1961 (22 U.S.C. 2460(a)(8)) is amended by 347(2)(A) of the Carl D. Perkins Vocational and Fiscal Years 1984 and 1985 (22 U.S.C. 4502(1)) is striking ‘‘1201(a) of the Higher Education Act of Applied Technology Education Act (20 U.S.C. amended by striking ‘‘1201(a)’’ and inserting 1965 (20 U.S.C. 1141(a))’’ and inserting 2394(2)(A)) is amended by striking ‘‘1201(a)’’ and ‘‘101(a)(1)’’. ‘‘101(a)(1) of the Higher Education Act of 1965’’. inserting ‘‘101(a)(1)’’. (7) EDUCATION FOR ECONOMIC SECURITY ACT.— (21) NATIONAL AND COMMUNITY SERVICE ACT (33) ENERGY POLICY AND CONSERVATION ACT.— Section 3(6) of the Education for Economic Se- OF 1990.—Sections 101(13) and 166(6) of the Na- Section 362(f)(5)(A) of the Energy Policy and curity Act (20 U.S.C. 3902(6)) is amended by tional and Community Service Act of 1990 (42 Conservation Act (42 U.S.C. 6322(f)(5)(A)) is striking ‘‘1201(a)’’ and inserting ‘‘101(a)(1)’’. U.S.C. 12511(13); 12626(6)) are each amended by amended by striking ‘‘1201(a) of the Higher Edu- (8) ELEMENTARY AND SECONDARY EDUCATION striking ‘‘1201(a) of the Higher Education Act of cation Act of 1965 (20 U.S.C. 1141(a))’’ and in- ACT OF 1965.—The Elementary and Secondary 1965 (20 U.S.C. 1141(a))’’ and inserting ‘‘101 of serting ‘‘101(a)(1) of the Higher Education Act Education Act of 1965 is amended— the Higher Education Act of 1965’’. of 1965’’. (A) in section 7501(4) (20 U.S.C. 7601(4)) by (22) NATIONAL DEFENSE AUTHORIZATION ACT (34) JAMES MADISON MEMORIAL FELLOWSHIP striking ‘‘1201(a)’’ and inserting ‘‘101(a)(1)’’; FOR FISCAL YEAR 1987.—Section 1403(4) of the Na- ACT.—Section 815 of the James Madison Memo- and tional Defense Authorization Act for Fiscal rial Fellowship Act (20 U.S.C. 4514) is amend- (B) in section 14101(17) (20 U.S.C. 8801(17)), by Year 1987 (20 U.S.C. 4702(4)) is amended by ed— striking ‘‘1201(a)’’ and inserting ‘‘101(a)(1)’’. striking ‘‘1201(a) of the Higher Education Act of (A) in paragraph (3), by striking ‘‘1201(a)’’ (9) FEDERAL AGRICULTURE IMPROVEMENT AND 1965 (20 U.S.C. 1141(a))’’ and inserting and inserting ‘‘101(a)(1)’’; and REFORM ACT OF 1996.—Section 922 of the Federal ‘‘101(a)(1) of the Higher Education Act of 1965’’. (B) in paragraph (4), by striking ‘‘1201(d)’’ Agriculture Improvement and Reform Act of (23) NATIONAL DEFENSE AUTHORIZATION ACT and inserting ‘‘101(a)(1)’’. 1996 (7 U.S.C. 2279c) is amended in subsections FOR FISCAL YEAR 1993.—The National Defense (35) REHABILITATION ACT OF 1973.—Sections (a)(1)(B) and (b)(1) by striking ‘‘1201 of the Authorization Act for Fiscal Year 1993 is 7(32) and 101(a)(7)(A)(iv)(II) of the Rehabilita- Higher Education Act of 1965 (20 U.S.C. 1141)’’ amended in section 4451(b)(1) (10 U.S.C. 2701 tion Act of 1973 (29 U.S.C. 706(32); 29 U.S.C. and inserting ‘‘101(a)(1) of the Higher Edu- note) by striking ‘‘1201(a) of the Higher Edu- 721(a)(7)(A)(iv)(II)) are each amended by strik- cation Act of 1965’’. cation Act of 1965 (20 U.S.C. 1141(a))’’ and in- ing ‘‘1201(a) of the Higher Education Act of 1965 April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2535

(20 U.S.C. 1141(a))’’ and inserting ‘‘101(a)(1) of ‘‘(B) ADDITIONAL INSTITUTIONS INCLUDED.— shall be required to meet the requirements of the Higher Education Act of 1965’’. The term ‘institution of higher education’ also paragraph (1) of this subsection. (36) TECHNOLOGY RELATED ASSISTANCE FOR IN- includes— ‘‘(iii) The failure of an institution outside the DIVIDUALS WITH DISABILITIES ACT OF 1988.—Sec- ‘‘(i) any school that provides not less than a United States to provide, release, or authorize tion 3(8) of the Technology Related Assistance one-year program of training to prepare stu- release to the Secretary of such information as for Individuals with Disabilities Act of 1988 (29 dents for gainful employment in a recognized may be required by clause (i) of this subpara- U.S.C. 2202(8)) is amended by striking ‘‘1201(a) occupation and that meets the provision of graph shall render such institution ineligible for of the Higher Education Act of 1965 (20 U.S.C. clauses (i), (ii), (iv), and (v) of subparagraph the purpose of part B of title IV. 1141(a))’’ and inserting ‘‘101(a)(1) of the Higher (A); and ‘‘(iv) If, pursuant to this subparagraph, an Education Act of 1965’’. ‘‘(ii) a public or nonprofit private educational institution loses eligibility to participate in the (37) TRIBALLY CONTROLLED COMMUNITY COL- institution in any State that, in lieu of the re- programs under title IV, then a student enrolled LEGE ASSISTANCE ACT OF 1978.—The Tribally Con- quirement in subparagraph (A)(i), admits as reg- at such institution may, notwithstanding such trolled Community College Assistance Act of ular students persons who are beyond the age of loss of eligibility, continue to be eligible to re- 1978 is amended— compulsory school attendance in the State in ceive a loan under part B while attending such (A) in section 2(a)(5) (25 U.S.C. 1801(a)(5)), by which the institution is located. institution for the academic year succeeding the striking ‘‘1201(a)’’ and inserting ‘‘101(a)(1)’’; ‘‘(C) LIST OF ACCREDITING AGENCIES.—For academic year in which such loss of eligibility and purposes of this subsection, the Secretary shall occurred. (B) in section 113(b)(2) (25 U.S.C. 1813(b)(2)), publish a list of nationally recognized accredit- ‘‘(C) LIMITATIONS BASED ON COURSE OF STUDY by striking ‘‘1201(a) of the Higher Education Act ing agencies or associations that he determines, OR ENROLLMENT.—An institution shall not be of 1965 (20 U.S.C. 1141(a))’’ and inserting pursuant to subpart 2 of part H of title IV of considered to meet the definition of an institu- ‘‘101(a)(1) of the Higher Education Act of 1965’’. this Act, to be reliable authority as to the qual- tion of higher education in subparagraph (A) of (38) VIOLENT CRIME CONTROL AND LAW EN- ity of the education or training offered. this paragraph if such institution— FORCEMENT ACT OF 1994.—The Violent Crime ‘‘(2) DEFINITION FOR PURPOSES OF TITLE IV ‘‘(i) offers more than 50 percent of such insti- Control and Law Enforcement Act of 1994 is PROGRAMS.— tution’s courses by correspondence, unless the amended— ‘‘(A) INCLUSION OF ADDITIONAL INSTITU- institution is an institution that meets the defi- (A) in sections 200103 and 200202 (42 U.S.C. TIONS.—Subject to subparagraphs (B) through nition in section 521(4)(C) of the Carl D. Perkins 14092; 14111), by striking ‘‘1201(a) of the Higher (D) of this paragraph, the term ‘institution of Vocational and Applied Technology Education Education Act of 1965 (20 U.S.C. 1141(a))’’ and higher education’ for purposes of title IV of this Act; inserting ‘‘101(a)(1) of the Higher Education Act Act includes, in addition to the institutions cov- ‘‘(ii) enrolls 50 percent or more of its students of 1965’’; and ered by the definition in paragraph (1) of this in correspondence courses, unless the institution (B) in section 30401(b) (42 U.S.C. 13791(b)), by subsection— is an institution that meets the definition in striking ‘‘a public’’ through ‘‘that Act’’ and in- ‘‘(i) a proprietary institution of higher edu- such section, except that the Secretary, at the serting ‘‘an elementary school as defined in sec- cation; request of such institution, may waive the appli- ‘‘(ii) a postsecondary vocational institution; tion 14101(14) of the Elementary and Secondary cability of this clause to such institution for and Education Act of 1965, and a secondary school good cause, as determined by the Secretary in ‘‘(iii) only for the purposes of part B of title as defined by section 14101(25) of such Act, the case of an institution of higher education IV, an institution outside the United States that which are public institutions’’. that provides a 2-year or 4-year program of in- is comparable to an institution of higher edu- (39) SCHOOL-TO-WORK OPPORTUNITIES ACT OF struction for which the institution awards an cation as defined in paragraph (1) of this sub- 1994.—Section 4 of the School-to-Work Opportu- associate or baccalaureate degree; section and that has been approved by the Sec- nities Act of 1994 (20 U.S.C. 6103) is amended— ‘‘(iii) has a student enrollment in which more retary for the purpose of part B of title IV. (A) in paragraph (11)(B)(viii), by striking than 25 percent of the students are incarcerated, ‘‘(B) INSTITUTIONS OUTSIDE THE UNITED ‘‘section 481(b)’’ and inserting ‘‘section except that the Secretary may waive the prohi- STATES.— 101(a)(3)’’; and bition of this clause for a nonprofit institution ‘‘(i) For the purpose of qualifying as an insti- that provides a 4-year or a 2-year program of in- (B) in paragraph (12), by striking ‘‘section tution under subparagraph (A)(iii) of this para- 481’’ and inserting ‘‘section 101(a)(2)’’. struction (or both) for which it awards a bach- graph, the Secretary shall establish criteria by elor’s or associate’s degree or diploma, respec- (40) NATIONAL AND COMMUNITY SERVICE ACT regulation for the approval of institutions out- tively; or OF 1990.—Section 148(g) of the National and side the United States and for the determination Community Service Act of 1990 (42 U.S.C. ‘‘(iv) has a student enrollment in which more that such institutions are comparable to an in- than 50 percent of the students do not have a 12604(g)) is amended by striking ‘‘section 481(a) stitution of higher education as defined in para- of the Higher Education Act of 1965 (20 U.S.C. high school diploma or its recognized equivalent graph (1) of this subsection. In the case of a and does not provide a 4-year or a 2-year pro- 1088(a))’’ and inserting ‘‘section 101(a)(2) of the graduate medical school outside the United Higher Education Act of 1965’’. gram of instruction (or both) for which it States, such criteria shall include a requirement awards a bachelor’s or associate’s degree, re- SEC. 102. DEFINITIONS. that a student attending a graduate medical spectively, except that the Secretary may waive (a) INSTITUTION OF HIGHER EDUCATION.—Sec- school outside the United States is ineligible for the limitation contained in this clause if a non- tion 101 (as redesignated by section 101(a)(3) of loans made, insured, or guaranteed under part profit institution demonstrates to the satisfac- this Act) is amended by striking subsections (a) B of this title unless— tion of the Secretary that it exceeds such limita- and (b) and inserting the following: ‘‘(I)(aa) at least 60 percent of those enrolled tion because it serves, through contracts with ‘‘(a) INSTITUTION OF HIGHER EDUCATION.— and at least 60 percent of the graduates of the Federal, State, or local government agencies, ‘‘(1) IN GENERAL.—Subject to paragraphs (2) graduate medical school outside the United significant numbers of students who do not have through (4) of this subsection: States were not persons described in section a high school diploma or its recognized equiva- ‘‘(A) PRINCIPAL CRITERIA.—The term ‘institu- 484(a)(5) in the year preceding the year for lent. tion of higher education’ means an educational which a student is seeking a loan under part B ‘‘(D) LIMITATIONS BASED ON MANAGEMENT.— institution in any State that— of title IV; and An institution shall not be considered to meet ‘‘(i) admits as regular students only persons ‘‘(bb) at least 60 percent of the individuals the definition of an institution of higher edu- having a certificate of graduation from a school who were students or graduates of the graduate cation in subparagraph (A) of this paragraph providing secondary education, or the recog- medical school outside the United States (both if— nized equivalent of such a certificate; nationals of the United States and others) tak- ‘‘(i) the institution, or an affiliate of the insti- ‘‘(ii) is legally authorized within such State to ing the examinations administered by the Edu- tution that has the power, by contract or owner- provide a program of education beyond second- cational Commission for Foreign Medical Grad- ship interest, to direct or cause the direction of ary education; uates received a passing score in the year pre- the management or policies of the institution, ‘‘(iii) provides an educational program for ceding the year for which a student is seeking a has filed for bankruptcy; or which it awards a bachelor’s degree or provides loan under part B of title IV; or ‘‘(ii) the institution, its owner, or its chief ex- not less than a two-year program that is accept- ‘‘(II) the institution’s clinical training pro- ecutive officer has been convicted of, or has pled able for full credit toward such a degree; gram was approved by a State as of January 1, nolo contendere or guilty to, a crime involving ‘‘(iv) is a public or other nonprofit institution; 1992. the acquisition, use, or expenditure of funds and ‘‘(ii) For the purpose of qualifying as an insti- under title IV, or has been judicially determined ‘‘(v) is accredited by a nationally recognized tution under subparagraph (A)(iii) of this para- to have committed fraud involving funds under accrediting agency or association, or if not so graph, the Secretary shall establish an advisory title IV. accredited, is an institution that has been panel of medical experts that shall— ‘‘(E) CERTIFICATION.—The Secretary shall cer- granted preaccreditation status by such an ‘‘(I) evaluate the standards of accreditation tify an institution’s qualification as an institu- agency or association that has been recognized applied to applicant foreign medical schools; tion of higher education in accordance with the by the Secretary for the granting of and requirements of subpart 2 of part H. preaccreditation status, and the Secretary has ‘‘(II) determine the comparability of those ‘‘(F) LOSS OF ELIGIBILITY.—An institution of determined that there is satisfactory assurance standards to standards for accreditation applied higher education shall not be considered to meet that the institution will meet the accreditation to United States medical schools. the definition of an institution of higher edu- standards of such an agency or association If such accreditation standards are determined cation in subparagraph (A) of this paragraph if within a reasonable time. not to be comparable, the foreign medical school such institution is removed from eligibility for H2536 CONGRESSIONAL RECORD — HOUSE April 29, 1998 funds under title IV as a result of an action (4) Section 498(j) is amended by striking ‘‘sec- under title IV. In the exercise of its functions, pursuant to part H of title IV. tions 481(b)(5) and 481(c)(3)’’ and inserting the PBO shall be subject to the direction of the ‘‘(3) PROPRIETARY INSTITUTION OF HIGHER ‘‘paragraphs (3)(A)(v) and (4)(A)(iii) of section Secretary. The Secretary shall— EDUCATION.— 101(a)’’. ‘‘(A) request the advice of, and work in co- ‘‘(A) PRINCIPAL CRITERIA.—For the purpose of (5) Section 105(b) (as redesignated by section operation with, the Chief Operating Officer in this subsection, the term ‘proprietary institution 101(a)(3)(D)) is amended by adding at the end developing regulations, policies, administrative of higher education’ means a school that— the following new sentence: ‘‘This subsection guidance, or procedures affecting the informa- ‘‘(i) provides an eligible program of training to shall cease to be effective on October 1, 2001.’’. tion systems administered by the PBO, and prepare students for gainful employment in a SEC. 103. REGULATORY REFORM. other functions performed by the PBO; recognized occupation; Title I is amended by adding at the end the ‘‘(B) request cost estimates from the Chief Op- ‘‘(ii) meets the requirements of clauses (i) and following new section: erating Officer for system changes required by (ii) of paragraph (1)(A) of this subsection; specific policies proposed by the Secretary; ‘‘(iii) does not meet the requirement of clause ‘‘SEC. 112. REGULATORY REFORM. ‘‘(C) consider the Chief Operating Officer’s (iv) of paragraph (1)(A) of this subsection; ‘‘(a) BIENNIAL REVIEW OF REGULATIONS.—In comments and estimates prior to finalizing such ‘‘(iv) is accredited by a nationally recognized every even-numbered year (beginning with regulations, policies, administrative guidance, accrediting agency or association approved by 1998), the Secretary— or procedures; the Secretary pursuant to part H of title IV; ‘‘(1) shall review all regulations issued under ‘‘(D) assist the Chief Operating Officer in ‘‘(v) has been in existence for at least 2 years; title IV of the Higher Education Act of 1965 in identifying goals for the administration and and effect at the time of the review that apply to the modernization of the delivery system for student ‘‘(vi) has at least 15 percent of its revenues operations or activities of any participant in financial assistance under title IV; and from sources that are not derived from funds those programs; and ‘‘(E) if necessary, arrange for additional provided under title IV, as determined in ac- ‘‘(2) shall determine whether any such regula- funding to ensure that the PBO can efficiently cordance with regulations prescribed by the Sec- tion is no longer necessary in the public interest. perform its functions. retary. ‘‘(b) EFFECT OF DETERMINATION.—The Sec- ‘‘(2) FUNCTIONS.—The PBO shall carry out retary shall repeal, consolidate, simplify, or oth- the following functions: In determining such 15 percent of revenues for erwise modify any regulation the Secretary de- ‘‘(A) All aspects of contracting for the data purposes of clause (vi), funds from programs of termines to be no longer necessary in the public and information systems supporting student fi- education and training that do not meet the def- interest. nancial assistance under title IV, including the inition of an eligible program in section 481(b), ‘‘(c) REPORT TO CONGRESS.—The Secretary operational administration of the William D. but are provided on a contractual basis under shall report to the Congress any legislative Ford Federal Direct Loan Program, but not in- Federal, State, or local training programs, or changes necessary to permit regulatory sim- cluding the development of policy relating to under specialized business and industry train- plification under this section.’’. such programs. ing requests, shall be counted. PART B—PERFORMANCE-BASED ORGANI- ‘‘(B) The administrative, accounting, and fi- ‘‘(B) ADDITIONAL INSTITUTIONS.—The term nancial management functions of the delivery ‘proprietary institution of higher education’ ZATION FOR THE DELIVERY OF FED- ERAL STUDENT FINANCIAL ASSISTANCE system for Federal student assistance, includ- also includes a proprietary educational institu- ing— tion in any State that, in lieu of the requirement SEC. 111. PERFORMANCE-BASED ORGANIZATION ‘‘(i) the collection, processing and trans- in clause (i) of paragraph (1)(A) of this sub- FOR THE DELIVERY OF FEDERAL STUDENT FINANCIAL ASSISTANCE. mission of applicant data to students, institu- section, admits as regular students persons who tions and authorized third parties, as provided Title I (as amended by part A of this title) is are beyond the age of compulsory school attend- for in section 483; amended— ance in the State in which the institution is lo- ‘‘(ii) technical specifications for software de- (1) by striking the heading of such title and cated. velopment and systems supporting the delivery inserting the following: ‘‘(4) POSTSECONDARY VOCATIONAL INSTITU- of student financial assistance under title IV; TION.— ‘‘TITLE I—GENERAL AND ADMINISTRATIVE ‘‘(iii) information technology and systems in- ‘‘(A) PRINCIPAL CRITERIA.—For the purpose of PROVISIONS frastructure related to the delivery and manage- this subsection, the term ‘postsecondary voca- ‘‘PART A—GENERAL PROVISIONS’’; ment of student financial assistance under title tional institution’ means a school that— and IV; ‘‘(i) provides an eligible program of training to (2) by adding at the end the following new ‘‘(iv) all software and hardware acquisitions prepare students for gainful employment in a part: and all information technology contracts related recognized occupation; to the delivery and management of student fi- ‘‘(ii) meets the requirements of clauses (i), (ii), ‘‘PART B—ADMINISTRATIVE PROVISIONS nancial assistance under title IV; and (iv), and (v) of paragraph (1)(A) of this sub- FOR DELIVERY OF STUDENT FINANCIAL ‘‘(v) all customer service, training and user section; and ASSISTANCE support related to the functions described in ‘‘(iii) has been in existence for at least 2 years. ‘‘SEC. 131. PERFORMANCE-BASED ORGANIZATION clauses (i) through (iv). ‘‘(B) ADDITIONAL INSTITUTIONS.—The term FOR THE DELIVERY OF FEDERAL ‘‘(C) Annual development of a budget for the ‘postsecondary vocational institution also in- STUDENT FINANCIAL ASSISTANCE. operations and services of the PBO, in consulta- cludes an educational institution in any State ‘‘(a) ESTABLISHMENT AND PURPOSE.— tion with the Secretary, and for consideration that, in lieu of the requirement in clause (i) of ‘‘(1) ESTABLISHMENT.—There is established in and inclusion in the Department’s annual budg- paragraph (1)(A) of this subsection, admits as the Department a Performance-Based Organiza- et submission. regular students persons who are beyond the tion (hereafter referred to as the ‘PBO’) which ‘‘(D) Annual development of goals, in con- age of compulsory school attendance in the shall be a discrete management unit responsible sultation with the Secretary, for the administra- State in which the institution is located. for managing the information systems support- tion and modernization of the system for deliv- ‘‘(b) STATE; FREELY ASSOCIATED STATES.— ing the programs authorized under title IV of ery of student financial assistance under title ‘‘(1) STATE.—The term ‘State’ includes, in ad- this Act, as specified in subsection (b). IV. dition to the several States of the Union, the ‘‘(2) PURPOSES.—The purposes of the PBO ‘‘(E) Other functions proposed by the Sec- Commonwealth of Puerto Rico, the District of are— retary, and agreed to by the Chief Operating Columbia, Guam, American Samoa, the Virgin ‘‘(A) to improve the level of service to students Officer as are not inconsistent with the func- Islands, the Commonwealth of the Northern and participants in the programs; tions of the PBO. Mariana Islands, and the Freely Associated ‘‘(B) to reduce the costs of administering the ‘‘(3) INDEPENDENCE.—In carrying out its func- States. Federal student financial assistance programs tions, the PBO shall exercise independent con- ‘‘(2) FREELY ASSOCIATED STATES.—The term authorized under title IV; trol of its budget allocations and expenditures, ‘Freely Associated States’ means the Republic of ‘‘(C) to increase the accountability of the offi- personnel decisions and processes, procure- the Marshall Islands, the Republic of Palau, cials responsible for administering the oper- ments, and other administrative and manage- and the Federated States of Micronesia.’’. ational aspects of these programs; ment functions. (b) CONFORMING AMENDMENTS.— ‘‘(D) to provide greater flexibility in the man- ‘‘(4) REVIEW OF PBO.—The PBO shall be sub- (1) Section 481 (20 U.S.C. 1088) is amended— agement of the operational functions of the Fed- ject to the usual and customary Federal audit (A) by striking subsections (a), (b), and (c); eral student financial assistance programs; procedures, and be subject to review by the In- and ‘‘(E) to integrate the information systems sup- spector General of the Department. (B) by redesignating subsections (d) through porting the Federal student financial assistance ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— (f) as subsections (a) through (c), respectively. programs; and For the purpose of funding the administrative (2) Each of the following provisions are ‘‘(F) to implement an open, common, inte- costs incurred by the PBO in administering sys- amended by striking ‘‘section 481’’ and inserting grated system for the delivery of student finan- tems supporting programs under this part, there ‘‘section 101(a)(2)’’: sections 435(a)(1), 487(d), cial assistance under title IV. are authorized to be appropriated such sums as and 496(j) and (k). ‘‘(b) AUTHORITY.— may be necessary for fiscal year 1999 and each (3) Section 498(i) (20 U.S.C. 1099c) is amended ‘‘(1) AUTHORITY OF SECRETARY.— Notwith- of the 4 succeeding fiscal years, except that by striking ‘‘section 481 (other than the require- standing any other provision of this Act, the funds authorized under section 458 shall be ments in subsections (b)(5) and (c)(3))’’ and in- Secretary shall maintain responsibility for the made available to the PBO by the Secretary for serting ‘‘section 101(a) (other than the require- development and promulgation of policy relating administrative costs authorized to be funded ments in paragraphs (3)(A)(v) and (4)(A)(iii))’’. to the programs of student financial assistance under that section. April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2537

‘‘(d) ORGANIZATIONAL REPORTS.— enter into an annual performance agreement combination thereof), consistent with the per- ‘‘(1) PERFORMANCE PLAN.—Within 6 months of which shall set forth measurable organization formance plan of the PBO and its performance the hiring of the Chief Operating Officer, and and individual goals for the Chief Operating Of- planning procedures, including those estab- every 12 months thereafter, the Secretary and ficer in key operational areas. The agreement lished under the Government Performance and the Chief Operating Officer of the Department shall be subject to review and renegotiation at Results Act of 1993, and communicating such shall develop a performance plan for the PBO the end of each term. The final agreement shall goals or objectives to employees. that establishes measurable goals and objectives be transmitted to the Committee on Education ‘‘(i) PROCUREMENT FLEXIBILITY.— for the organization. In developing this perform- and the Workforce of the House of Representa- ‘‘(1) IN GENERAL.—Except as provided in this ance plan, the Secretary and the Chief Operat- tives and the Committee on Labor and Human subsection, the PBO shall abide by all applica- ing Officer shall consult with the Committee on Resources of the Senate, and made publicly ble Federal procurement laws and regulations Education and the Workforce of the House of available. when procuring property and services. The PBO Representatives, the Committee on Labor and ‘‘(3) COMPENSATION.—The Chief Operating shall— Human Resources of the Senate, and the Advi- Officer is authorized to be paid at an annual ‘‘(A) enter into contracts for information sys- sory Committee on Student Financial Assist- rate of basic pay not to exceed the maximum tems supporting the programs authorized under ance. The performance plan shall include a con- rate of basic pay for the Senior Executive Serv- title IV to carry out the functions set forth in cise statement of goals for a modernized system ice under section 5382 of title 5, United States subsection (b)(2); and for the delivery of student financial assistance Code, including any applicable locality-based ‘‘(B) obtain the services of experts and con- under title IV and identify action steps nec- comparability payment that may be authorized sultants without regard to section 3109 of title 5, essary to achieve such goals. Such goals shall be under section 5304(h)(2)(B) of such title 5. In United States Code and set pay in accordance used in evaluating the performance of the Chief addition, the Chief Operating Officer may re- with such section. Operating Officer and the PBO pursuant to ceive a bonus in an amount up to, but not in ex- ‘‘(2) PERFORMANCE BASED SERVICING CON- paragraph (2). cess of, 50 percent of such annual rate of basic TRACTS.—The Chief Operating Officer shall, to ‘‘(2) ANNUAL ACCOUNTABILITY REPORT.—The pay, based upon the Secretary’s evaluation of the extent practicable, maximize the use of per- Chief Operating Officer shall prepare and sub- the Chief Operating Officer’s performance in re- formance based servicing contracts, consistent mit an annual accountability report to the Sec- lation to the performance goals set forth in the with guidelines for such contracts published by retary and the Committee on Education and the performance agreement described in paragraph the Office of Federal Procurement Policy, to Workforce of the House of Representatives and (2). Payment of a bonus under this paragraph achieve cost savings and improve service. the Committee on Labor and Human Resources may be made to the Chief Operating Officer ‘‘(3) FEE FOR SERVICE ARRANGEMENTS.—The of the Senate. The accountability report shall only to the extent that such payment does not Chief Operating Officer shall, to the extent include— cause the Chief Operating Officer’s total aggre- practicable and consistent with the purpose of ‘‘(A) an independent financial audit of the ex- gate compensation in a calendar year to equal the PBO, utilize services available outside of the penditures of both the PBO and programs ad- or exceed the amount of the President’s salary Federal Government in the delivery of Federal ministered by it; under section 102 of title 3, United States Code. student financial assistance. To achieve this ‘‘(B) financial and performance requirements ‘‘(f) SENIOR MANAGEMENT.— purpose, the PBO is authorized to pay fees to applicable to the PBO under the Chief Finan- ‘‘(1) IN GENERAL.—The Chief Operating Offi- an organization that are equivalent to those cial Officer Act of 1990 and the Government Per- cer may appoint up to 5 senior managers as may paid by other entities for such services, if the formance and Results Act of 1993; be necessary without regard to the provisions of Chief Operating Officer determines that such or- ‘‘(C) the results achieved by the PBO during title 5, United States Code, governing appoint- ganization currently provides an information the year relative to the goals established in the ments in the competitive service, and who may system or service that meets the requirements of organization’s performance plan; be paid without regard to the provisions of the PBO. ‘‘(D) the results of the evaluations of perform- chapter 51 and subchapter III of chapter 53 of ‘‘(j) FOCUS GROUPS.—To facilitate information ance of the Chief Operating Officer and senior such title relating to classification and General sharing and customer involvement, the Chief managers under subsections (e)(2) and (f)(2), in- Schedule pay rates. Operating Officer may establish focus groups cluding the amounts of bonus compensation ‘‘(2) PERFORMANCE AGREEMENT.—The Chief composed of students, institutions, and other awarded to these individuals; Operating Officer shall enter into an annual participants in the programs authorized by title ‘‘(E) a discussion of the effectiveness of co- performance agreement with each senior man- IV to provide advice on student aid delivery ordination between the PBO and the Secretary; ager appointed under this subsection which matters. ‘‘(F) recommendations for legislative and reg- shall set forth measurable organization and in- ‘‘SEC. 132. ADMINISTRATIVE SIMPLIFICATION OF ulatory changes to improve service to students dividual goals in key operational areas. The STUDENT AID DELIVERY. and their families, and to improve program effi- agreement shall be subject to review and renego- ‘‘(a) IN GENERAL.—The Secretary, and the ciency and integrity; and tiation at the end of each term. Chief Operating Officer shall improve the effi- ‘‘(G) other such information as the Director of ‘‘(3) COMPENSATION.—The Chief Operating ciency and effectiveness of the student aid deliv- the Office of Management and Budget shall pre- Officer is authorized to pay senior managers at ery system by encouraging and participating in scribe for performance based organizations. an annual rate of basic pay not to exceed 75 the establishment of voluntary consensus stand- ‘‘(e) CHIEF OPERATING OFFICER.— percent of the maximum rate of basic pay for the ards and requirements for the electronic trans- ‘‘(1) IN GENERAL.—The management of the Senior Executive Service under section 5382 of mission of information necessary for the admin- PBO shall be vested in a Chief Operating Offi- title 5, United States Code, including any appli- istration of programs under title IV. cer who shall be appointed by the Secretary to cable locality-based comparability payment that ‘‘(b) ADOPTION OF VOLUNTARY CONSENSUS a 5-year term and compensated without regard may be authorized under section 5304(h)(2)(C) of STANDARDS.—Except with respect to the common to chapters 33, 51, and 53 of title 5, United such title 5. In addition, a senior manager may financial reporting form under section 483(a), States Code. The Secretary shall appoint the receive a bonus in an amount up to, but not in the Secretary shall adopt voluntary consensus Chief Operating Officer within 6 months of the excess of, 50 percent of such annual rate of standards for transactions required under title date of enactment of this part. The Secretary basic pay, based upon the Chief Operating Offi- IV, and common data elements for such trans- shall consult with the Chairmen of the Commit- cer’s evaluation of the manager’s performance actions, to enable information to be exchanged tee on Education and the Workforce of the in relation to the performance goals set forth in electronically between systems administered by House of Representatives and the Committee on the performance agreement described in para- the Department and among participants in the Labor and Human Resources of the Senate prior graph (2). Federal student aid delivery system. to making an appointment. The appointment ‘‘(g) PERSONNEL FLEXIBILITY.— ‘‘(c) REQUIREMENTS FOR ADOPTION OF VOL- shall be made on the basis of demonstrated man- ‘‘(1) PERSONNEL CEILINGS.—The PBO shall not UNTARY CONSENSUS STANDARDS.—Any voluntary agement ability and expertise in information be subject to any ceiling relating to the number consensus standard adopted under this section technology, including extensive experience in or grade of employees. shall— the financial services industry, and without re- ‘‘(2) ADMINISTRATIVE FLEXIBILITY.—The Chief ‘‘(1) be a standard that has been developed, gard to political affiliation or activity. The Sec- Operating Officer shall work with the Office of adopted, or modified by a standard setting orga- retary may reappoint the Chief Operating Offi- Personnel Management to develop and imple- nization that is open to the participation of the cer to subsequent terms so long as the perform- ment personnel flexibilities in staffing, classi- various entities engaged in the delivery of Fed- ance of the Chief Operating Officer, as set forth fication, and pay that meet the needs of the eral student financial assistance; and in the performance agreement, is satisfactory or PBO, subject to compliance with title 5, United ‘‘(2) be consistent with the objective of reduc- better. The Chief Operating Officer may be re- States Code. ing the administrative costs of delivering stu- moved by— ‘‘(h) ESTABLISHMENT OF A FAIR AND EQUI- dent financial assistance under title IV. ‘‘(A) the President; or TABLE SYSTEM FOR MEASURING STAFF PERFORM- ‘‘(d) PARTICIPATION IN STANDARD SETTING OR- ‘‘(B) the Secretary, for misconduct or failure ANCE.—The PBO shall establish an annual per- GANIZATIONS.— to meet performance goals set forth in the per- formance management system, subject to compli- ‘‘(1) The Chief Operating Officer shall partici- formance agreement in paragraph (2). ance with title 5, United States Code and con- pate in the activities of standard setting organi- The President or Secretary shall communicate sistent with applicable provisions of law and zations in carrying out the provisions of this the reasons for any such removal to the appro- regulations, which strengthens the organiza- section. priate committees of Congress. tional effectiveness of the PBO by providing for ‘‘(2) The Chief Operating Officer shall encour- ‘‘(2) PERFORMANCE AGREEMENT.—The Sec- establishing goals or objectives for individual, age higher education groups seeking to develop retary and the Chief Operating Officer shall group, or organizational performance (or any common forms, standards, and procedures in H2538 CONGRESSIONAL RECORD — HOUSE April 29, 1998 support of the delivery of Federal student finan- transactions, data elements, or any other stand- done. There is nothing sacred about the cial assistance to conduct these activities within ard that is necessary to, or will facilitate, the Social Security number. The program a standard setting organization. implementation of this section. can be run without the use of Social ‘‘(3) The Chief Operating Officer may pay ‘‘(3) For purposes of this section, the term Security. necessary dues and fees associated with partici- ‘clearinghouse’ means a public or private entity pating in standard setting organizations pursu- that processes or facilitates the processing of I would like to just read very briefly ant to this subsection from funds available nonstandard data elements into data elements some passages from the Privacy Act of under subsection (j). conforming to standards adopted under this sec- 1974 to make my colleagues stop and ‘‘(e) PROCEDURES FOR ADOPTION AND IMPLE- tion.’’. think about what we are doing. MENTATION OF VOLUNTARY CONSENSUS STAND- The CHAIRMAN. Are there any ‘‘It shall be unlawful for any Federal, ARDS.—In adopting voluntary consensus stand- amendments to title 1? State or local government agency to ards and implementation timetables under this AMENDMENT NO. 3 OFFERED BY MR. PAUL deny any individual any right, benefit section, including modifications of existing or privilege provided by law because of standards, the Secretary shall follow the proce- Mr. PAUL. Mr. Chairman, I offer an dures for negotiated rulemaking in section 492. amendment. such individual’s refusal to disclose his ‘‘(f) INITIAL VOLUNTARY CONSENSUS STAND- The CHAIRMAN. The Clerk will des- Social Security number.’’ ARDS TO BE ADOPTED.—Through coordinated ignate the amendment. If one does not give his Social Secu- participation between the Chief Operating Offi- The text of the amendment is as fol- rity number, one is in big trouble in cer and standard setting organizations, the ini- lows: this country. One cannot even get out tial standards adopted by the Secretary shall in- of the hospital if one is born without a clude the following: Amendment No. 3 offered by Mr. PAUL: Page 50, line 13, at the end of paragraph (1) Social Security number, and one can- ‘‘(1) ELECTRONIC PERSONAL IDENTIFIER NUM- not open up a savings account for a BER.—The Secretary shall adopt standards for a add the following new sentence: ‘‘The Sec- single electronic personal identifier number for retary shall not use the social security ac- child if one does not have a Social Se- students receiving assistance under title IV. count numbers issued under title II of the curity number. One is not even allowed ‘‘(2) ELECTRONIC SIGNATURE.—The Secretary, Social Security Act as the electronic per- to die at this time without a Social Se- in coordination with the Secretary of Commerce, sonal identifier, and shall not use any identi- curity number, because one needs a So- shall adopt standards specifying procedures for fier used in any other Federal program as cial Security number on one’s death the electronic transmission and authentication the electronic personal identifier.’’. certificate. Talk about cradle to grave. of signatures with respect to transactions re- (Mr. PAUL asked and was given per- ‘‘Any Federal, State or local govern- quiring a signature under title IV. mission to revise and extend his re- ment agency which requests an individ- ‘‘(3) SINGLE INSTITUTIONAL IDENTIFIER.—The Secretary shall adopt standards for a single marks.) ual disclose his Social Security number identifier for eligible institutions under title IV. Mr. PAUL. Mr. Chairman, this shall inform that individual whether ‘‘(g) USE OF CLEARINGHOUSES.—Nothing in amendment is not a complex amend- that disclosure is mandatory or vol- this section shall restrict the ability of partici- ment. It merely states that Social Se- untary, by what statutory or other au- pating institutions and lenders from using a curity numbers cannot be used to iden- thority the number is listed and what clearinghouse to comply with the standards for tify the individuals who will be partici- uses will be made of it.’’ We do not the exchange of information established under pating in this program. have that happening. Numbers are just this section. This is a common practice, obvi- ‘‘(h) APPLICABILITY TO CURRENT SYSTEMS.— demanded, and too many people have ‘‘(1) GENERAL RULE.—Except as provided in ously, today. The Social Security num- complied with it, and we go along with paragraph (2) and (3), this section shall apply ber is used just for about everything. it, but more and more Americans are to all Department of Education information sys- As a matter of fact, many Americans getting upset with this monitoring of tems supporting the delivery of programs under think way too often. everything that we do through the So- title IV no later than 12 months from the date of There are 40 Federal programs now cial Security number. enactment of this part. where the Social Security number is Every single government program is ‘‘(2) NATIONAL STUDENT LOAN DATA SYSTEM.— required. Not only that, the Federal now requiring it. Like I said, there are This section shall apply to sections 485B(e) and (f) no later than 18 months after the date of en- Government now has been mandating 40, 40 programs. Immigration, think actment of this part. the uses of the Social Security number about how the immigration programs ‘‘(3) INTEGRATED POSTSECONDARY EDUCATION for similar purposes even on State pro- are monitored through Social Security DATA SYSTEM.—The Secretary shall coordinate grams such as obtaining our driver’s li- numbers. There have been attempts to the adoption of voluntary consensus standards cense. use the Social Security number to under this section to ensure that standards are The concern that I have and that monitor people in their voting. We do compatible with the integrated postsecondary many Americans have is that govern- not need this. We do not need more education data system (IPEDS). ment is too intrusive, wants too many government surveillance in promoting ‘‘(i) DATA SECURITY.—Any entity that main- tains or transmits information under a trans- records and knows too much about ev- this kind of a program. The program action covered by this section shall maintain erybody. The government and non- can survive, can work. reasonable and appropriate administrative, government people can get our names Some would argue, well, possibly, technical, and physical safeguards— and they can get our Social Security just possibly, the efficiency of the pro- ‘‘(1) to ensure the integrity and confidential- numbers and find out more about us gram may be diminished. That will be ity of the information; and than we know about ourselves, and the argument that I will probably hear. ‘‘(2) to protect against any reasonably antici- that is not the intent of our Constitu- The efficiency of the program will be pated security threats, or unauthorized uses or disclosures of the information. tion. It certainly is not the intent of diminished. Well, if this is the argu- ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.— the Privacy Act. ment, then we are saying that we are There are authorized to be appropriated in any The Privacy Act concerns were ex- here to protect the efficiency of the fiscal year or made available from funds appro- pressed through this legislation in 1974 State. I see an important role for us to priated to carry out activities in this section in stating that, yes, we have overstepped be here is to protect the privacy and any fiscal year such sums as may be necessary our bounds, there is too much intru- the civil liberties of the citizen. So we to carry out the provisions of this section, except siveness, and we are moving in the di- are in conflict. Which should our role that if no funds are appropriated pursuant to rection of a national identification be, to protect privacy and civil lib- this subsection, the Secretary shall make funds available to carry out this section from amounts card, something that is unknown and erties, or is it to protect the efficiency appropriated for the operations and expenses of should be unheard of in a free society. of the State? Well, it is not difficult for me to fig- the Department of Education. b 2100 ‘‘(k) DEFINITIONS.—For purposes of this sec- ure that out, and it is not like I am tion: We should not have an identity card saying this program would not exist, it ‘‘(1) The term ‘voluntary consensus standard’ to carry our papers to get jobs, open is just saying that we will put a small means a standard developed or used by a stand- bank accounts, move about the coun- amount of surveillance on this where ard setting organization accredited by the Amer- try, but we are moving rapidly in that the government is not so casual in ex- ican National Standards Institute. ‘‘(2) The term ‘standard setting organization’ direction. This is a token effort to panding its role for the Social Security means a standard setting organization accred- make this point and require the gov- number. ited by the American National Standards Insti- ernment to use some other identifica- In the Privacy Act of 1974, in the tute that develops standards for information tion method for this program. It can be findings, they made a comment which I April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2539 think is very important, and this is in important that we defeat his amend- section (b)(2)) is amended by adding at the end 1974 when it was not really bad. ‘‘The ment and use the Social Security num- the following new sentence: ‘‘The information Congress finds the opportunities for an ber to make this program viable. developed as a result of this section shall be individual to secure employment, in- Mr. KILDEE. Mr. Chairman, I move made available to Urban Grant Institutions and to any other interested institution of higher surance and credit and his right to due to strike the last word. education by any appropriate means, including process and other legal protections are I know the gentleman from Texas the Internet.’’. endangered by the misuse of certain in- (Mr. PAUL) is very sincere on this; I (e) AUTHORIZATION OF APPROPRIATIONS.—Sec- formation systems.’’ have talked to him, and I know the tion 209 (as redesignated by subsection (b)(2)) is I ask my colleagues to support this issues. But really, the purpose of using amended by striking ‘‘1993’’ and inserting amendment. This is a positive amend- the Social Security number in these in- ‘‘1999’’. ment; this is an amendment to protect stances is really to prevent fraud and SEC. 202. FUND FOR THE IMPROVEMENT OF civil liberties of every American. abuse. POSTSECONDARY EDUCATION. Mr. MCKEON. Mr. Chairman, I rise in We have millions and millions of dol- (a) REDESIGNATION AND TRANSFER OF PRO- GRAMS.— opposition to the gentleman’s amend- lars involved in these programs to as- ment. (1) REDESIGNATION.—Part A of title X (20 sist students to go to college, and I U.S.C. 1135 et seq.) is redesignated as part B of Mr. Chairman, I agree with many of think that the taxpayers certainly are the things that the gentleman from title II (as amended by section 201) and— willing to have a person use their So- (A) sections 1001 through 1003 (20 U.S.C. 1135 Texas (Mr. PAUL) has said, and I agree cial Security number to make sure et seq.) are redesignated as sections 221 through that we have to be alert and vigilant in that there is no fraud and abuse in this 223; and seeing how the government can impose program. I think it is very important. (B) section 1011 (20 U.S.C. 1135a–11) is redesig- itself in our lives, but this use of a So- I just filled out my income tax a few nated as section 224. (2) TRANSFER.—Part B of title II (including cial Security number is not new, it has weeks ago, and put my Social Security been used for identifying student loan sections 221 through 224), as redesignated by number on the income tax and did not applications since the inception of the paragraph (1), is transferred to follow part A of feel threatened by that. So I would op- program. title II. I would like to make just a couple of pose the amendment. (3) REPEAL.—Section 1004 and parts B, C, and D of title X (20 U.S.C. 1135a–3, 1135e et seq.) and points as to why it is important to The CHAIRMAN. The question is on the amendment offered by the gen- the heading of title X are repealed. have it. It is good to know who we are (b) ENDOWMENT GRANTS.—Section 221(a) (as giving the money out to, especially tleman from Texas (Mr. PAUL). The question was taken; and the redesignated by subsection (a)(2)) is amended— when we want to collect on the loans. (1) by striking ‘‘and’’ at the end of paragraph Chairman announced that the noes ap- Information provided by students and (7); families in order to receive Federal aid peared to have it. (2) by striking the period at the end of para- is based on income information which Mr. PAUL. Mr. Chairman, I demand a graph (8) and inserting ‘‘; and’’; and is verified against IRS records to pre- recorded vote. (3) by adding at the end the following new vent fraud and abuse in the student aid The CHAIRMAN. Pursuant to House paragraph: ‘‘(9) awarding an endowment grant, on a com- programs. Resolution 411, further proceedings on the amendment offered by the gen- petitive basis, to a national organization to en- I think while there are concerns able such organization to support the establish- about the intrusiveness of government, tleman from Texas (Mr. PAUL) will be postponed. ment or ongoing work of area program centers there are also a great many concerns that foster the development of local affiliated as to fraud in programs. It is important Are there further amendments to chapters in high-poverty areas to improve grad- that we protect against fraud and title I? uation rates and postsecondary attendance abuse in these programs. This is very If not, the Clerk will designate title through the provision of academic support serv- important to use the Social Security II. ices and scholarship assistance for the pursuit number to do that. The text of title II is as follows: of postsecondary education.’’. Applications are also matched with TITLE II—POSTSECONDARY EDUCATION (c) SPECIAL PROJECTS.—Section 224 (as redes- the Social Security records to make IMPROVEMENT PROGRAMS ignated by subsection (a)(2)(B)) is amended— (1) by striking paragraphs (1), (2), and (3) of sure the person applying for aid has a SEC. 201. URBAN COMMUNITY SERVICE. subsection (c) and inserting the following: valid Social Security number. I know (a) DESIGNATION OF TITLE.—The Higher Edu- ‘‘(1) institutional restructuring to improve the gentleman has made point of the cation Act of 1965 is amended by inserting at the learning and promote productivity, efficiency, fact that we put a Social Security end of title I (20 U.S.C. 1001 et seq.) the follow- quality improvement, and cost and price control; number on death certificates. That is ing: ‘‘(2) articulation agreements between two-year so that when people die, we make sure ‘‘TITLE II—POSTSECONDARY EDUCATION and four-year institutions; that they do not apply for student aid. IMPROVEMENT PROGRAMS’’. ‘‘(3) evaluation and dissemination of model I think that is an important thing to (b) REDESIGNATION AND TRANSFER OF URBAN programs; and ‘‘(4) international cooperation and student ex- do. COMMUNITY SERVICE PROGRAM.— (1) INTERNAL CROSS-REFERENCES.—Part A of change among postsecondary educational insti- This check is also done to ensure tutions.’’; and that the correct person is using his or title XI is amended— (A) in section 1102(b), by striking ‘‘section (2) by striking subsection (d). her correct Social Security number and 1104’’ and inserting ‘‘section 204’’; (d) AUTHORIZATION OF APPROPRIATIONS.— not a fraudulent number. (B) in section 1104(12), by striking ‘‘section (1) COMBINATION OF SUBPARTS.—Part B of Social Security numbers are also 1103(a)(2)(B)’’ and inserting ‘‘section title II (as redesignated by subsection (a)) is used for skip tracing in tracking down 203(a)(2)(B)’’; and amended by striking the subpart designations the current addresses of student who (C) in section 1108(1), by striking ‘‘section and headings. are delinquent or who default on their 1103’’ and inserting ‘‘section 203’’. (2) AUTHORIZATION.—Part B of title II (as so loans so that they can be contacted to (2) REDESIGNATION.—Part A of title XI (20 redesignated) is amended by adding at the end the following: repay the debt. This practice saves tax- U.S.C. 1136 et seq.) is redesignated as part A of title II, and sections 1101 through 1109 are redes- payers millions of dollars. I think it is ‘‘SEC. 225. AUTHORIZATION OF APPROPRIATIONS. ignated as sections 201 through 209. ‘‘There are authorized to be appropriated to incumbent upon us to be very diligent (3) TRANSFER.—Part A of title II (including carry out this part $30,000,000 for fiscal year in the use of taxpayer dollars. sections 201 through 209), as redesignated by 1999 and such sums as may be necessary for The safeguards afforded the student paragraph (2), is transferred to immediately fol- each of the 4 succeeding fiscal years.’’. loan program and the taxpayer by al- low the heading inserted by subsection (a) of SEC. 203. GRANTS TO STATES FOR WORKPLACE lowing the use of Social Security num- this section. AND COMMUNITY TRANSITION bers should not be done away with (4) REPEAL.—Part B of title XI (20 U.S.C. 1137 TRAINING FOR INCARCERATED until such time as another viable alter- et seq.) and the heading of title XI are repealed. YOUTH OFFENDERS. native exists for matching records and (c) ALLOWABLE ACTIVITIES.—Section 204 (as (a) REDESIGNATION AND TRANSFER OF PRO- redesignated by subsection (b)(2)) is amended by GRAMS.— verifying information, which is critical adding at the end the following new paragraph: (1) REDESIGNATION.—Part E of title X (20 to preventing fraud and abuse in the ‘‘(14) Improving access to technology in local U.S.C. 1135g) is redesignated as part C of title II Federal student aid programs. communities.’’. and section 1091 is redesignated as section 231. While I agree with some of the gen- (d) DESIGNATION OF URBAN GRANT INSTITU- (2) TRANSFER.—Part C of title II (including tleman’s concerns, I think it is very TIONS.—Section 207 (as redesignated by sub- section 231), as redesignated by paragraph (1), is H2540 CONGRESSIONAL RECORD — HOUSE April 29, 1998 transferred to follow part B of title II (as ‘‘(E) implementing reforms which hold institu- amount of funds available for all grants under amended by section 202 of this Act). tions of higher education with teacher prepara- this part and the types of activities proposed to (b) REAUTHORIZATION.—Section 231(j) (as so tion programs accountable for preparing teach- be carried out. redesignated) is amended to read as follows: ers who are highly competent in the academic ‘‘(2) EFFECT OF RANKING BY PANEL.—In mak- ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.— content areas in which they plan to teach; and ing grants under this part, the Secretary shall There are authorized to be appropriated to carry ‘‘(2) use a portion of such grant to establish a select applications according to the ranking of out this section $5,000,000 for fiscal year 1999 lighthouse partnership consisting of the Gov- the applications by the peer review panel, ex- and such sums as may be necessary for each of ernor, an exemplary institution of higher edu- cept in cases where the Secretary determines, for the four succeeding fiscal years.’’. cation which prepares teachers, and a local edu- good cause, that a variation from that order is SEC. 204. ADVANCED PLACEMENT FEE PAYMENT cational agency and which may also consist of appropriate. PROGRAM. other institutions of higher education, public ‘‘(g) MATCHING REQUIREMENT.—Each State re- (a) REDESIGNATION AND TRANSFER OF PRO- charter schools, and public and private non- ceiving funds under this part shall provide, from GRAMS.— profit elementary and secondary schools, for the non-Federal sources, an amount equal to 1/2 of (1) REDESIGNATION.—Part G of title XV of the purpose of carrying out one or more of the fol- the amount of the grant in cash or in kind to Higher Education Amendments of 1992 (20 lowing activities: carry out the activities supported by the grant. U.S.C. 1170) is redesignated as part D of title II ‘‘(A) creating opportunities for enhance and ‘‘(h) LIMITATION ON ADMINISTRATIVE EX- and section 1545 of such Act is redesignated as ongoing professional development which im- PENSES.—A State that receives a grant under section 241. proves the academic content knowledge of this part may use not more than 2 percent of the (2) TRANSFER.—Part D of title II (including teachers in the subject areas in which they are grant funds for administrative costs. section 241), as redesignated by paragraph (1), is certified to teach or in which they are working ‘‘(i) REPORTING.— transferred to follow part C of title II (as toward certification to teach; ‘‘(1) IN GENERAL.—A Governor that receives a amended by section 203 of this Act). ‘‘(B) providing programs designed to imple- grant under this section shall submit an ac- countability report to the Secretary and the (b) REAUTHORIZATION.—Section 241(f) (as so ment the successful integration of technology redesignated) is amended by striking ‘‘1993’’ and into teaching and learning; Committee on Education and the Workforce of inserting ‘‘1999’’. ‘‘(C) implementing reforms which hold institu- the House of Representatives and the Committee tions of higher education with teacher prepara- on Labor and Human Resources of the Senate. SEC. 205. TEACHER QUALITY ENHANCEMENT Such reports shall include a description of the GRANTS. tion programs accountable for preparing teach- degree to which the State, in using these funds, Title II is further amended by adding at the ers who are highly competent in the academic has made substantial progress in meeting the end the following new part: content areas in which they plan to teach; ‘‘(D) reforming State certification require- following goals: ‘‘PART E—TEACHER QUALITY ‘‘(A) Raising the State academic standards re- ments to ensure that current and future teach- ENHANCEMENT GRANTS quired to enter the teaching profession. ers possess the necessary academic content ‘‘(B) Increasing the percentage of classes ‘‘SEC. 271. PURPOSE. knowledge in the subject areas in which they taught in core academic subject areas by teach- ‘‘The purposes of this part are— are certified to teach; and ers fully certified by the State to teach in those ‘‘(1) to provide competitive grants to States for ‘‘(E) recruiting minorities, and others, into the assistance in strengthening the quality of the subject areas. teaching and counseling profession, including ‘‘(C) Decreasing shortages of qualified teach- teaching force by improving the academic education paraprofessionals, former military knowledge of teachers in the subject areas in ers in poor urban and rural areas. personnel, and mid-career professionals, by pro- ‘‘(D) Increasing opportunities for enhanced which they teach; viding financial and other assistance related to ‘‘(2) to hold institutions of higher education and ongoing professional development which instruction, induction, mentoring and support improves the academic content knowledge of with teacher preparation programs accountable services. for preparing teachers who are highly com- teachers in the subject areas in which they are ‘‘SEC. 274. COMPETITIVE AWARDS. petent in the academic content areas in which certified to teach or in which they are working ‘‘(a) COMPETITIVE BASIS FOR AWARDS.—The they plan to teach, including training in the ef- toward certification to teach. Secretary shall make annual grants under this ‘‘(2) ACCOUNTABILITY OF STATE INSTITUTION fective uses of technologies in the classroom; part on a competitive basis. OF HIGHER EDUCATION.—Prior to receiving funds and ‘‘(b) PEER REVIEW PANEL.—The Secretary under this part, a State shall demonstrate that ‘‘(3) to recruit high quality individuals, in- shall provide the applications submitted by Gov- at least 80 percent of graduates of each of the cluding individuals from other occupation, into ernors under section 272 to a peer review panel exemplary institutions of higher education in the teaching force. for evaluation. With respect to each application, any partnership described in section 273(a)(2) ‘‘SEC. 272. ELIGIBILITY. the peer review panel shall initially recommend who enter the field of teaching pass all applica- ‘‘(a) APPLICATIONS.—To be eligible to receive a the application for funding or for disapproval. ble State qualification assessments of new teach- grant under this part, a Governor shall, at the ‘‘(c) PRIORITY.—In recommending applica- ers, which must include assessments of each pro- time of the initial grant application, submit an tions to the Secretary, the panel shall give prior- spective teacher’s subject matter knowledge in application to the Secretary that meets the re- ity to applications from States with proposals the content area or areas in which the teacher quirements of this part. which promise initiatives to reform State teacher provides instruction. Prior to each subsequent ‘‘(b) CONTENTS OF APPLICATION.—Such appli- certification requirements which are designed to receipt of funds under this part, such State cation shall include a description of how the ensure that current and future teachers possess shall demonstrate that 70 percent of the grad- State intends to use funds provided under this the necessary academic content knowledge in uates of each institution of higher education in part and such other information and assurances the subject areas in which they are certified to the State have met such goal and continue to as the Secretary may require. teach or which include innovative reforms to progress to exceed such goal. Such assessment ‘‘(c) STATE AUTHORITY.—Nothing under this hold institutions of higher education with shall be at least as rigorous as those in place on part shall be construed to negate or supersede teacher preparation programs accountable for the date of enactment of this Act and shall have the legal authority, under State law of any preparing teachers who are highly competent in qualifying scores no lower than those in place State agency, State entity, or State public offi- the academic content areas in which they plan on date of enactment of this Act. cial over programs that are under the jurisdic- to teach. ‘‘(3) PROVISION TO PEER REVIEW PANEL.—The tion of the agency, entity, or official. ‘‘(d) RANKING OF APPLICATIONS.—With respect Secretary shall provide the reports submitted ‘‘SEC. 273. USE OF FUNDS. to each application recommended for funding, under paragraph (1) to the peer review panel ‘‘The Governor of a State that receives a grant the panel shall assign the application a rank, convened under subsection (b). The panel shall under this subpart shall— relative to other recommended applications, use such accountability report in recommending ‘‘(1) use a portion of such grant to carry out based on the priority described in subsection (c), applications for subsequent funding under this one or more of the following activities: the extent to which the application furthers the section. ‘‘(A) reforming State teacher certification re- purposes of this part, and the overall quality of ‘‘(j) TEACHERS QUALIFICATIONS PROVIDED TO quirements to ensure that current and future the application, based on the quality and scope PARENT UPON REQUEST.—Any local educational teachers possess the necessary academic content of State-supported strategies to improve quality agency that participates as an eligible applicant knowledge in the subject areas in which they of teacher preparation and their teaching force. or partner under this part shall make available, are certified and assigned to teach; ‘‘(e) RECOMMENDATION OF AMOUNT.—With re- upon request and in an understandable and ‘‘(B) providing prospective teachers alter- spect to each application recommended for fund- uniform format, to any parent of a student at- natives to schools of education through pro- ing, the panel shall make a recommendation to tending any school in the local educational grams at colleges of arts and sciences or at non- the Secretary with respect to the amount of the agency, information regarding the qualifications profit organizations; grant that should be made. of the students classroom teacher, both gen- ‘‘(C) funding programs which establish or ex- ‘‘(f) SECRETARIAL SELECTION.— erally and with regard to the subject matter in pand alternative routes to State certification for ‘‘(1) IN GENERAL.—Subject to paragraph (2), which the teacher provides instruction. highly qualified individuals from other occupa- the Secretary shall determine, based on the peer ‘‘SEC. 275. LIMITATIONS. tions; review panel’s recommendations, which applica- ‘‘(a) FEDERAL CONTROL PROHIBITED.—Noth- ‘‘(D) developing and implementing effective tions shall receive funding and the amounts of ing in this part shall be construed to permit, mechanisms to expeditiously remove incompetent such grants. In determining grant amounts, the allow, encourage, or authorize any Federal con- or unqualified teachers; and Secretary shall take into account the total trol over any aspect of any private, religious, or April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2541 home school, whether or not a home school is hold down the costs of college. In fact, Amendment No. 20 offered by Mr. FARR of treated as a private school or home school under the number 1 recommendation of the California: State law. This section shall not be construed to National Commission on the Cost of Insert at the end of section 271(1) of the bar private, religious, or home schools from par- Higher Education is to strengthen in- Higher Education Act of 1965 as amended by ticipation in programs or services under this the manager’s amendment offered by the part. stitutional cost control. That is their Gentleman from Pennsylvania the following: ‘‘(b) NO CHANGE IN STATE CONTROL ENCOUR- number 1 recommendation. ‘‘, such as math, science, English, foreign AGED OR REQUIRED.—Nothing in this part shall Mr. Chairman, the very simple languages, history, economics, art, and be construed to encourage or require any amendment that I am offering would civics’’. change in a State’s treatment of any private, re- help institutions in some ways to re- Mr. FARR of California. Mr. Chair- ligious, or home school, whether or not a home duce their costs and hopefully allow man, I just want to say that I really school is treated as a private school or home them to use those savings to lower the school under State law. enjoy seeing this wonderful bipartisan cost of tuition and college fees. In the support for education here on the ‘‘(c) NATIONAL SYSTEM OF TEACHER CERTIFI- State of Vermont, where my wife has CATION PROHIBITED.—Nothing in this part shall House floor. I cannot think of any issue be construed to permit, allow, encourage, or au- served as provost of a small college and that is more of interest to the people in thorize any national system of teacher certifi- has been involved in this area, and in this country now than education, and cation. many other regions of the country, col- it is wonderful that we are at a time ‘‘SEC. 276. AUTHORIZATION OF APPROPRIATIONS. leges are beginning to come together to when education has become our most ‘‘(a) AUTHORIZATION.—There are authorized form partnerships or consortia that en- important product, and I would like to to be appropriated to carry out this part, ables them to share resources and re- $18,500,000 for fiscal years 1999 and such sums acknowledge and compliment the lead- duce their collective costs. ership on both sides of the aisle, the as may be necessary for each of the 4 succeeding For example, in some cases, signifi- gentleman from Pennsylvania (Mr. fiscal years. cant cost savings can be realized by RANSITION GOODLING) for his great leadership and ‘‘(b) T .—Notwithstanding any other joint purchasing of goods and services provision of law, the Secretary may use funds the gentleman from Michigan (Mr. KIL- appropriated under subsection (a) to complete when schools come together to pur- chase things like fuel, and in the State DEE). awards under the original grant period for I have a quick amendment. This of Vermont fuel is an expensive cost, or projects that were funded under subpart 2 of amendment is to Part E of the Teacher part E of title V of this Act, as in effect prior to insurance; if they pool their resources, Quality Enforcement Enhancement enactment of the Higher Education Amendments they can save money and use those sav- of 1998.’’. ings to lower the cost of tuition. The Grants, which is section 271(i). This SEC. 206. ADDITIONAL REPEAL. problem right now, however, is that section is the one that consolidates 17 Title VIII (20 U.S.C. 1133 et seq.), relating to many hard-pressed schools, many of existing higher education programs cooperative education, is repealed. the smaller schools, simply do not have into a new competitive grant program The CHAIRMAN. Are there amend- the resources or the available technical to improve teacher training. ments to title II? expertise to figure out how they can do Section 271(i) provides competitive grants to the States to strengthen the AMENDMENT NO. 55 OFFERED BY MR. SANDERS those things and how they can work Mr. SANDERS. Mr. Chairman, I offer with other colleges to reduce costs. quality of teaching force in the core an amendment. This amendment, which would add no subject areas. My language would The CHAIRMAN. The Clerk will des- additional costs to any of the higher merely list those core subject areas as ignate the amendment. education programs, would instead give math, science, English, foreign lan- The text of the amendment is as fol- the Fund for the Improvement of Post- guages, history, economics, art and lows: secondary Education, which admin- civics. MODIFICATION TO AMENDMENT NO 20 OFFERED Amendment No. 55 offered by Mr. SANDERS: isters a competitive grant program for . Page 56, after line 18, insert the following higher education institutions, a broad- BY MR. FARR OF CALIFORNIA new paragraph (and redesignate the succeed- er mission and allow them to make Mr. FARR of California. Mr. Chair- ing paragraphs accordingly): competitive grants available to insti- man, I also discovered there was a ‘‘(5) cooperation between institutions to tutions which seek to cooperate and re- drafting error that omitted govern- encourage cost saving initiatives through duce costs through the joint purchase ment and geography from the list, so I joint purchase of goods and services, and would ask unanimous consent to mod- shared use of facilities and faculty re- of goods and services. sources.’’ Mr. Chairman, this amendment is ify my amendment to add government and geography. Mr. SANDERS. Mr. Chairman, I will consistent with the National Commis- be very brief, and I want to thank both sion on the Cost of Higher Education b 2115 which recommends: ‘‘Greater institu- the majority and the minority for ac- The CHAIRMAN. The Clerk will re- cepting this amendment. tional and regional cooperation in using existing facilities and institu- port the modification. Mr. Chairman, as we attempt to The Clerk read as follows: tions of higher education,’’ and that is make higher education more affordable Modification to amendment offered by Mr. and more accessible for the middle-in- what this amendment does. I thank both the majority and the FARR of California: come and working families of our coun- In the matter proposed to be inserted minority for accepting this amend- try, we need, in fact, to do a much bet- strike out ‘‘and’’, and insert before the clos- ment. ter job in controlling the escalating ing quotation mark ‘‘government and geog- Mr. MCKEON. Mr. Chairman, I rise in raphy’’. cost of a college education. support of the amendment. We thank The cost of a college degree from The CHAIRMAN. Is there objection the gentleman from Vermont (Mr. many institutions in this country to the modification to the amendment SANDERS) for his efforts to improve the today is truly shocking. According to offered by the gentleman from Califor- bill, and we gladly accept his amend- the National Commission on the Cost nia (Mr. FARR)? ment. There was no objection. of Higher Education, and I quote, ‘‘In The CHAIRMAN. The question is on The CHAIRMAN. The question is on the 20 years between 1976 and 1996, the the amendment offered by the gen- average tuition at public universities the amendment, as modified, offered by tleman from Vermont (Mr. SANDERS). increased from $642 to $3,151, and the The amendment was agreed to. the gentleman from California (Mr. average tuition at private universities The CHAIRMAN. Are there any fur- FARR). increased from $2,881 to $15,581.’’ ther amendments to title II? The amendment, as modified, was agreed to. Tuitions at public 2-year colleges, AMENDMENT NO. 20 OFFERED BY MR. FARR OF the least expensive of all types of insti- CALIFORNIA The CHAIRMAN. Are there any fur- tutions, they have increased 5 times Mr. FARR of California. Mr. Chair- ther amendments? over. So it seems to me while we do all man, I offer an amendment. AMENDMENT NO. 51 OFFERED BY MR. OWENS that we can to increase Federal aid for The CHAIRMAN. The Clerk will des- Mr. OWENS. Mr. Chairman, I offer an those middle-income and working fam- ignate the amendment. amendment. ilies that need a college education, we The text of the amendment is as fol- The CHAIRMAN. The Clerk will des- are doing relatively little, I think, to lows: ignate the amendment. H2542 CONGRESSIONAL RECORD — HOUSE April 29, 1998 The text of the amendment is as fol- one grant under this section, but may, sub- ance to eligible individuals described in sub- lows: ject to the requirements of this section, use section (c). the grant to enter into contracts with more ‘‘(B) Entering into a contract with each Amendment No. 51 offered by Mr. OWENS: Page 68, after line 11, insert the following than one community-based organization. A community-based organization selected new section (and redesignate the succeeding community-based organization shall not be under subparagraph (A) under which the in- section accordingly): eligible to enter into a contract under this stitution and the organization agree to carry section with more than one institution of out the duties respectively required of them SEC. 206. POSTSECONDARY INFORMATION TECH- NOLOGY EDUCATION RECRUITMENT higher education. under this section with respect to each site (a) FINDINGS.—The Congress finds the fol- ‘‘(4) PERIOD OF GRANT.—The provision of described in subparagraph (A). lowing: payments under a grant under this section ‘‘(C) With respect to each site described in (1) There are more than 200,000 to 400,000 shall not exceed 5 fiscal years and shall be subparagraph (A)— vacancies in various categories of informa- subject to the annual approval of the Sec- ‘‘(i) design of a process for the recruitment tion technology jobs. retary and subject to the availability of ap- of students from site to enroll in college (2) From 1996 to 2005, more than 1,300,000 propriations for each fiscal year involved. courses or matriculate in college programs; ‘‘(b) COMMUNITY-BASED ORGANIZATIONS.— new computer scientists, engineers, and sys- ‘‘(ii) provision of such funding for the es- ‘‘(1) IN GENERAL.—Subject to paragraph (2), tems analysts will be required in the United tablishment and initial operation of the site a community-based organization described States to fill vacant jobs, which equals as was specified in the grant application sub- in this subsection is an entity that, at the 136,800 new workers per year. mitted by the institution to the Secretary; time the entity enters into a contract with ‘‘(iii) approval of final site selection and (3) Systems analysts will experience the an institution of higher education for a preparation; largest job growth, accounting for a 103 per- project under this section, and throughout ‘‘(iv) initial orientation and training of cent increase in the number of new positions the duration of that contract— personnel employed to manage and operate from 1996 (506,000) to 2005 (1,025,000). ‘‘(A) is— the site; (4) The shortage of information technology ‘‘(i) a governmental agency; or ‘‘(v) design and certification of the instruc- workers transcends industries, affecting the ‘‘(ii) an organization described in section tional and academic programs, and oversight manufacturing, service, transportation, 501(c)(3) of the Internal Revenue Code of 1986 of the implementation of the programs; health care, education, and government sec- and exempt from tax under section 501(a) of ‘‘(vi) oversight of equipment purchases and tors. Within each sector, vacancies exist at such Code; and contracts for equipment maintenance; and all levels from aides and mechanics to pro- ‘‘(B) is one of the following: ‘‘(vii) selection of an outside contractor for grammers and designers. ‘‘(i) A local partnership (as defined in sec- periodic evaluation of the management and (5) The information technology worker tion 4 of the School-to-Work Opportunities operation of the site. shortage is having an adverse effect on the Act of 1994) receiving a grant under section ‘‘(2) COMMUNITY-BASED ORGANIZATIONS.— viability of businesses in the United States 302 of such Act. ‘‘(A) IN GENERAL.—A community-based or- and on the Nation’s competitiveness. Indus- ‘‘(ii) An entity organized and operated for ganization implementing a project under try surveys report that half of industry ex- religious purposes. this section with an institution of higher ecutives cite the lack of workers skilled in ‘‘(iii) An entity furnishing school-age child education, at one or more sites, shall carry technology as the number one obstacle to care services after school. out the duties described in this paragraph, their company’s growth. An additional 20 ‘‘(iv) A community-based college computer with respect to each such site, subject to the percent of industry executives identify the recruitment center. oversight and guidance of the institution. lack of information technology workers as a ‘‘(v) An entity furnishing adult education. ‘‘(B) GENERAL DUTIES.—The organization— major obstacle to their company’s growth. ‘‘(vi) A library. ‘‘(i) shall undertake final site selection and (6) A major factor affecting the short sup- ‘‘(vii) A museum. preparation; ply of information technology workers is the ‘‘(viii) Any other entity organized and op- ‘‘(ii) shall recruit and hire a site director; mismatch between what universities teach erated for cultural, literary, or educational ‘‘(iii) shall carry out any supplementary and what industry needs. purposes. instructional, academic, or educational ac- (7) It is in the national interest to promote ‘‘(2) LIMITATION.—An entity shall not be tivities specified in the contract with the in- special initiatives which effectively educate considered a community-based organization stitution of higher education that are not de- and train our domestic workforce to keep described in this subsection unless, at the scribed in subparagraph (D); pace with these expanding job opportunities. time the entity enters into a contract with ‘‘(iv) shall assemble an advisory committee (8) Institutions of higher education have an institution of higher education for a composed of individuals residing in the com- the capacity and resources to provide a role project under this section, it has dem- munity in which the site is located, as well of oversight and technical assistance to a onstrated to the satisfaction of the Sec- as industry representatives, who desire to as- wide range of local entities, including com- retary that— sist the organization in ensuring that the munity-based organizations, participating in ‘‘(A) it has the capacity successfully to re- goals of the organization are consistent with a comprehensive education and training pro- cruit eligible individuals described in sub- the goals and needs of the community popu- gram for potential technology workers. section (c) for participation in a project de- lation; (9) Higher education institutions must be scribed in subsection (a), consistent with the ‘‘(v) shall provide to the institution other responsive to the digital environment and enrollment requirements in subsection evidence of volunteer support from among expand both their outreach efforts and on- (d)(2)(E); individuals residing in the community in campus activities to train and certify indi- ‘‘(B) it is providing an educational service, which the site is located and industry rep- viduals to close the information technology social service, or employment procurement resentatives; worker gap. service; and ‘‘(vi) shall recruit eligible individuals for (b) AMENDMENT.—Title II is amended by ‘‘(C) in the case of an entity that independ- enrollment, subject to subparagraph (E); adding at the end the following: ently manages its own finances, it has been ‘‘(vii) shall maintain waiting lists of eligi- ‘‘PART G—INFORMATION TECHNOLOGY in existence 2 years or more. ble individuals desiring to enroll in the EDUCATION RECRUITMENT ‘‘(c) ELIGIBLE INDIVIDUALS.—An eligible in- project’s programs; ‘‘SEC. 281. PARTNERSHIPS FOR POSTSECONDARY dividual described in this subsection is an in- ‘‘(C) SITE REQUIREMENTS.—The organiza- INFORMATION TECHNOLOGY EDU- dividual who— tion shall ensure that each site— CATION RECRUITMENT ‘‘(1) has submitted a satisfactory applica- ‘‘(i) has a minimum of 20 fully functioning ‘‘(a) GRANTS AUTHORIZED.— tion to receive postsecondary information computers with sufficient capacity to per- ‘‘(1) IN GENERAL.—The Secretary may make technology education recruitment assistance form all of the computer operations that are grants under this section, in accordance with through a project under this section; and the subject of the curriculum specified in competitive criteria established by the Sec- ‘‘(2) has a certificate of graduation from a subparagraph (D); retary, to institutions of higher education, school providing secondary education, or the ‘‘(ii) in addition to the space for the com- in order to establish, oversee the operation recognized equivalent of such a certificate. puters described in clause (i), has— of, and provide technical assistance to, ‘‘(d) DUTIES.— ‘‘(I) a classroom space with the capacity projects described in paragraph (2). ‘‘(1) INSTITUTIONS OF HIGHER EDUCATION.— for seating a minimum of 30 students; ‘‘(2) PROJECTS.—Projects under this section An institution of higher education receiving ‘‘(II) a separate office for the site director; shall be projects implemented by a commu- a grant under this section shall use the funds ‘‘(iii) is real property subject to the control nity-based organization described in sub- provided under the grant to carry out the of the organization or the institution, section (b), or by the institution of higher following duties: through a lease or other legal instrument, education receiving the grant, to provide ‘‘(A) Final selection of community-based for a period of not less than 5 years; postsecondary information technology edu- organizations described in subsection (b) de- ‘‘(iv) is open to enrolled individuals not cation and employment procurement assist- siring to provide, at one or more sites, in ac- less than 12 hours per day; and ance to eligible individuals described in sub- cordance with a contract with the institu- ‘‘(v) is located within walking distance of section (c). tion of higher education and this section, public transportation. ‘‘(3) RESTRICTIONS.—An institution of high- postsecondary information technology edu- ‘‘(D) INFORMATION TECHNOLOGY CURRICU- er education shall be eligible to receive only cation and employment procurement assist- LUM.— April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2543 ‘‘(i) IN GENERAL.—The organization shall ‘‘(B) located in a low-income community report entitled ‘‘The Emerging Digital ensure that each site offers enrollees a cur- (as determined by the Secretary); and Economy’’; and a report from an indus- riculum that includes a broad range of ‘‘(C) organized and operated for the pur- try trade association called ‘‘Help course work in information technology. pose of providing families with access to Wanted: A Call for Deliberative Action ‘‘(ii) COURSES LEADING TO CERTIFICATION.— computer resources that otherwise would not Such curriculum shall include course work be available to them. for the New Millennium.’’ These analy- leading to a certification of competence in ‘‘(3) FOOD STAMP PROGRAM.—The term ‘food ses draw a dramatic conclusion about areas of information technology recognized stamp program’ has the meaning given such the gross shortages that will exist now by the National Skill Standards Board estab- term in section 3(h) of the Food Stamp Act and into the year 2005. lished under the National Skill Standards of 1977. Because of the crisis, the Information Act of 1994. ‘‘(4) LIBRARY.—The term ‘library’ has the Technology Association of America has ‘‘(iii) SPECIFIC COURSES.—The computer meaning given such term in section 213 of pledged its support for this amend- training offered shall include courses in the Library Services and Technology Act. ment. As the trade association that basic computer competence, on-the-job up- ‘‘(5) MUSEUM.—The term ‘museum’ has the represents information technology grade assistance, and advanced computer meaning given such term in section 272 of competence. the Museum and Library Services Act.’’. workers and businesses, ITAA docu- ‘‘(E) ENROLLMENT REQUIREMENTS.—The or- Mr. OWENS. Mr. Chairman, this ments how businesses are themselves ganization shall ensure that its enrollment amendment seeks to deal with the complaining for assistance. Mr. Chairman, I submit a letter from of eligible individuals at each site is consist- omission which I cited earlier. There is ent with the following: ITAA which supports this amendment: a problem, there is a crisis, there is a ‘‘(i) Not less than 50 percent of the eligible ITAA, individuals shall be, at the time of enroll- great need for more information tech- nology workers. There is a crisis that Arlington, VA, April 28, 1998. ment, individuals— Hon. MAJOR R. OWENS, ‘‘(I) to whom a credit was allowed under will be met with legislation from this U.S. House of Representatives, Rayburn House section 32 of the Internal Revenue Code of House of Representatives in the 105th Office Building, Washington, DC. 1986 for the preceding taxable year; Congress. There are a number of dif- DEAR CONGRESSMAN OWENS: I understand ‘‘(II) who are recipients of assistance under ferent committees looking at the prob- that you are soon to introduce a bill, the a State program funded under part A of title lem, and this committee should do its ‘‘Workforce Investment Partnership Act.’’ IV of the Social Security Act; duty and address the problem. Based on a review of your draft legislation, ‘‘(III) who are a member of a household Government analyses, industry re- it appears it addresses the information tech- participating in the food stamp program; or nology (IT) training needs that are critical ‘‘(IV) who are considered low-income pur- ports, media headlines, and lobbying activities from businesses point to a to the growth of American industry. As the suant to regulations promulgated by the industry association with leadership on Secretary under this section. crisis in the American education sys- growing the domestic IT workforce, the In- ‘‘(ii) Not less than 50 percent of the eligible tem and the workplace. There are not formation Technology Association of Amer- individuals shall be, at the time of enroll- enough workers to fill 200,000 to 400,000 ica (ITAA) is pleased to see the way you are ment, under 25 years of age. current vacancies in various categories attempting to deal with creatively the work- ‘‘(iii) No prerequisite relating to net worth, of information technology jobs. force shortage. income, or assets may be applied to any eli- It has been reported that ‘‘a major ITAA’s recently released a study con- gible individual who, at the time of enroll- factor affecting the short supply of in- ducted by Virginia Polytechnic Institute and ment, is over 50 years of age, except that this State University (VA Tech), Help Wanted requirement shall not be construed to super- formation technology workers is a mis- match between what universities teach 1998: A call for Collaborative Action for the sede clause (i). New Millennium. This study found that ‘‘(e) IMPLEMENTATION OF PROJECTS SOLELY and what industry needs.’’ One indus- there are currently 346,000 vacant IT posi- BY INSTITUTIONS.—The Secretary may make try executive likened the current situ- tions in American companies. These vacan- a grant under this section to an institution ation to ‘‘running out of iron ore in the cies exist both at high tech companies and in of higher education that desires to imple- middle of the industrial revolution.’’ other industry sectors, including banking, ment a project under this section without While I commend the chairmen and retail, insurance, and hospitality. Every re- the participation of a community-based or- ranking members of both the commit- gion of the country is impacted by this lack ganization described in subsection (b), if the tee and the subcommittee for fashion- of IT talent. The IT skills gap represents institution agrees to carry out all of the du- thousands of missed opportunities for Amer- ties required of such an organization under ing a palatable bill, H.R. 6 does not comprehensively address the anchor ican workers, because these high paying, this section, in addition to the duties other- high growth jobs remain vacant. wise required of an institution of higher edu- role that our higher education institu- ITAA supports partnerships among stake- cation. The Secretary shall, in awarding tions could play in eliminating Ameri- holders in business, academia, and govern- grants under this section, give priority to in- ca’s newest deficit of high skilled tech- ment which create opportunities for Ameri- stitutions of higher education whose grant nology workers. The Information Tech- cans to pursue IT jobs. ITAA is especially application includes an assurance that the nology Partnership Amendment which supportive of those partnerships that lever- institution will contract with one or more age existing resources (such as college fac- community-based organizations in accord- I am offering here would correct this gross oversight in H.R. 6. ulties and community-based organizations) ance with this section. for new types of training programs, as your ‘‘(f) APPLICATIONS.—To apply for a grant This amendment would authorize a legislation suggest. ITAA looks forward to under this section for any fiscal year, an in- competitive grant program for colleges working with you and your staff to develop stitution of higher education shall submit an and universities to establish and over- this project and include industry leaders in application to the Secretary in accordance see information technology education the process. with the procedures established by the Sec- recruitment projects. Higher education Thank you for your leadership on this crit- retary. The application shall specify the in- ical issue. If you have any questions or com- stitution’s preliminary selections for the institutions would be expected to ex- ments please feel free to contact me at community-based organizations (if any) with pand existing resources to establish [email protected] or 703–284–5340, or contact which the institution proposes to contract, computer training centers off campus. Lauren Brownstein, ITAA’s Workforce Edu- and shall include information with respect to Priority would be given to those col- cation Program Manager, at preliminary site selections. leges and universities that enter into [email protected] or 703–284–5318. ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— partnerships with community-based or- Sincerely, There are authorized to be appropriated to ganizations such as after-school cen- HARRIS N. MILLER, carry out this section $100,000,000 for fiscal President. year 1999 and such sums as may be necessary ters and nonprofit cultural and edu- for each of the 4 succeeding fiscal years. cational organizations and even ITAA MEMBER COMPANIES ‘‘(h) DEFINITIONS.—For purposes of this sec- churches. 3Com Corporation; A.I.H. Systems Group, tion: Many of my colleagues in Congress Inc.; ABT Corporation; Accelr8 Technology ‘‘(1) ADULT EDUCATION.—The term ‘adult understand the severity of the shortage Corporation; Adobe Systems, Inc. Federal education’ has the meaning given such term of workers with the necessary edu- Systems Division; Advanced Information in section 312 of the Adult Education Act. cation to compete in this new millen- Network Systems; Advanced Technology ‘‘(2) COMMUNITY-BASED COLLEGE COMPUTER nium. Several reports have docu- Systems Corporation; Affiliated Computer RECRUITMENT CENTER.—The term ‘commu- Services, Inc.; AH&T Technology Brokers; nity-based computer center’ means a com- mented this crisis: The Commerce De- AITECH Research, Inc.; Albers & Company; puter center— partment report entitled ‘‘America’s ALIT Inc.; Altenbern, Douglas Honorary ‘‘(A) funded by both the Federal Govern- New Deficit’’; reports from the Bureau ITAA Member; Ambassador Capital Corpora- ment and at least one private sector entity; of Labor Statistics; another Commerce tion; Amdahl Corporation; America Online, H2544 CONGRESSIONAL RECORD — HOUSE April 29, 1998 Inc.; ANATEC; Andersen Consulting LLP; Luanne Honorary ITAA Member; Jerger As- ferson Group; The Software Factory; The ANSTEC, Inc.; ARKSYS; Arter & Hadden; sociates. Updata Group, Inc.; Thinking Tools, Inc.; AT&T; Atkinson & Associates, Inc.; Atlantic Keane, Inc.; Kearney & Company; Keith Tone Software Corporation; Tracor Enter- Data Services, Inc.; AVATAR Solutions, Bates & Associates, Inc.; Kirkpatrick & prise Solutions, Inc.; Transition Software Inc.; Lockhart LLP; Knautz, Allan Honorary Corporation; Transportation Consulting BDM International, Inc.; BEA Systems; ITAA Member; KPMG Peat Marwick LLP. Group, Inc.; Triad Data Inc.; TRW; TSI Beach, Stephen H. Honorary ITTA Member; Landmark Systems Corporation; Levi, Ray International Software, Ltd. Bellcore; Best Computer Consultants, Inc.; & Shoup, Inc.; LexiBridge Corporation; Lit- Ultim—IT Solutions Inc.; Ultradata Cor- Billennium L.P.; Bob Lejeune, Honorary ton PRC; Locate In Kent; Lockheed Martin poration; Ultradata Systems Inc.; Ulysses Member; Boeing; Boston Technology, Inc.; Federal Systems; Lyons & Associates, Inc. Group Associates, Inc.; Unisys Federal Sys- BrightStar Information Technology Group, Manley, Robert Honorary ITAA Member; tems Division; USF&G Corporation. Inc.; Brookline Technologies Inc.; BTG, Inc.; MAPSYS; Marimba, Inc.; Market* Access Vanstar Corp., Gov’t Systems Group; Vec- Business Representation Inc. International; Martec Computer Services tor Consulting; VentureTech 2000, Inc.; CACI International Inc.; Caine Farber and Company; MASTECH Corporation; Veronex Technologies, Inc.; Vertex Inc.; Gordon, Inc.; Caliber Learning Network, MatchPoint Systems, Inc.; MAXIMUS, Inc.; Veson, Inc.; VIASOFT, Inc.; Village Informa- Inc.; Cap Gemini America; Capital Tech- Maxxion Systems Inc.; McCabe & Associates, tion Solutions, L.L.C.; Virtual Consulting. nology Information Services: Capricorn Sys- Inc.; McGuire, Woods, Battle & Booth; MCI Wang Federal; Wang, Inc.; Waterfield tems, Inc.; Carpenter Associates; Carr, Am- Inc.; McKenna & Cuneo, L.L.P.; Mercer Com- Technology Group, Inc.; Wellinger & Associ- brose A., Jr. Honorary ITAA Member; CCD puter Systems, Inc.; Merrill Lynch; Micro ates, Inc.; Welsh, Carson, Anderson & Stowe; Online Systems, Inc.; Center For Innovative Focus, Inc.; Microsoft Corporation; Millen- Wheat International Communications Corp.; William M. Mercer, Inc. Technology; Century for Innovative Tech- nia III; Millennium Dynamics, Inc.; MCL Y2K Solutions Group, Inc.; Y2Kplus, Inc.; nology; Century Staffing Consultants; Chuck Group, Inc.; modis. Napersoft, Inc.; National Comprehensive Year 2000 Inventory Management Ltd.; Zitel Wheeler Associates, Inc.; CIBER 2000, Inc.; Corporation; Zmax Corporation. Services Corp.; NBS Systems, Inc.; NeoMedia Claremont Technology Group, Inc.; Class So- Mr. Chairman, I might add also that lutions Ltd.; Cognos Corporation; COLMAR Technologies, Inc.; NEPS Inc.; NETCOM On- Corporation; Complete Business Solutions, Line Communication Services, Inc.; there is another solution being pro- Inc.; Computec International Resources Inc.; Netscape Communications Corp.; New Art posed by the Committee on the Judici- Computer Associates International, Inc.; Technologies, Inc.; Next Millennium Con- ary. The Committee on the Judiciary Computer Generated Solutions, Inc.; Com- sulting, Inc.; NIIT (USA) Inc.; Northrop proposes to meet this crisis by import- puter Horizons Corporation; Computer Peo- Grumman Corp—Data Systems & Serv. Div.; ing, or by changing the visa quota by ple Inc.; Computer Sciences Corporation; Novadyne Computer Systems, Inc. increasing it from 60,000 to 115,000 and Computer Task Group, Inc. (CTG); COMSYS O’Grady-Peyton International; Olympic bringing in professionals from foreign Technical Services, Inc.; Consist Inter- Staffing Services; Onstad, Phillip C. Honor- ary ITAA Member; Open Market, Inc.; Oracle countries, trained professionals in this national, Inc.; Contract Solutions, Inc.; Coo- area from foreign countries. They will pers & Lybrand L.L.P.; Corporate Executive Corporation; Oracle Corporation. Computing, Inc.; Cotelligent Group, Inc.; Paragon Computer Professionals, Inc.; solve the problem that way instead of CROSS ACCESS Corporation; CrossRoute Pentamation Enterprises, Inc.; Peopleware addressing the need to prepare more of Software, Inc.; Crowell & Moring; CTA Incor- Technical Resources, Inc.; Performance our own citizens for this very impor- porated; CyberCash, Inc.; Cyborg Systems, Technology Group; Phil Butler & Associates, tant set of jobs. Inc. Ltd.; Phoenix Software International; Pierre Mr. Chairman, these jobs will be Data Dimensions, Inc.; Data General Cor- Audoin Conseil; Piscopo, J.A. Honorary around for a long time. There is a poration; Data Processing & Accounting ITAA Member; PLATINUM Technology, Inc.; stratification. It is not only the people Services; Data Processing Resources Cor- Price Waterhouse LLP; PRINCE Software, Inc.; Princeton Information Ltd.; Prodigy at the very top who are designers and poration; Data Systems Analysts, Inc.; the engineers for computers and for Dataccount Corporation; De Bellas & Co.; Services Corporation; PSDI. Doloitte & Touche LLP; DemoNet Inc.; Quality Engineering Software Automation software. It is not only the computer Dickstein, Shapiro & Morin, LLP; Digital (QES). programmers, but also technicians and Commerce Corp.; Digital Equipment Cor- Rapasky, John R. Honorary ITAA Member; technologists. poration; Distributed Software Development, Rational Software Corp.; RCG Information All of the estimates of the vacancies Inc.; DSQ Software Corporation; DynCorp. Technology, Inc.; Reasoning, Inc.; Renais- so far have not taken into consider- Edge Information Group; EDS Corporation; sance Solutions, Inc.; Renaissance World- ation the needs outside of business. Emerald Solutions, Inc.; Envision, Inc.; Epsi- wide; Robbins-Gioia, Inc.; Robert Half Inter- They are only looking at business national, Inc.; Rollins, Arthur Honorary lon Software Development Company; Ernst needs. They have not looked at the & Young. ITAA Member. Fargo Provisioning; Federal Data Corpora- Sachs, Spector, Glasser & Waxman, P.C.; needs of the schools and the colleges tion; Federal Sources, Inc.; First Floor Soft- Sam Albert Associates; SCB Computer Tech- where there is a shortage of people who ware; Forecross Corporation; Foursight Sem- nology, Inc.; Schoenberg, Lawrence ITAA can deal with educational information inars, Inc.; Fujitsu Limited; Fundamental Honorary Member; Science Applications technology. Education technology will Software. International Corporation (SAIC); SCO; Se- require more teachers and teachers will G2R; Galland, Kharasch & Garfinkle, P.C.; cure Computing Corp.; Government Division; have to have technology assistants and GE Information Services; Geac Computer Sentry Technology Group; Sequent Com- technicians. Systems, Inc.; General Dynamics Informa- puter Systems, Inc. (Federal Division); Just as we have an automobile cul- SERENA Software International; Serendip- tion Systems; Global Data Solutions; GMR ture in this country that has built up Technologies International; GMRTI; Goel & ity Consulting; Seyfarth, Shaw, Fairweather Associates, P.C.; Goetz Associates Honorary & Geraldson; Shaw Pittman Potts & Trow- over many decades of the automobile ITAA Member; Golder, Thoma, Cressey, bridge; Signet Bank; Silicon Graphics, Inc.; existing, we are going to have a culture Rauner, Inc.; Government Strategy Advisors; Silverline Industries, Inc.; Softech Inter- of the computer and a culture of infor- Government Technology Services, Inc.; national; Software AG Americas; Software mation technology which will have Grant Thornton LLP; Great Lakes Tech- Productivity Consortium; Software Services people at all strata and we should pre- nologies Group; Greenbrier & Russel, Inc.; Corporation; Software Synergy, Inc.; pare for that now. GTE Internetworking; GTE Technology and SOFTWORKS, Inc.; Solomon Software; This amendment recognizes that Systems. Southbridge Financial Corporation; South- higher education institutions have the western Business Resources; Specifics, Inc.; Hanover & Associates, Ltd.; Hazel & Thom- capacity and the resources to provide as, PC; Highmark Blue Cross Blue Shield; SPR Inc.; Sprint; Spyglass, Inc.; SRA Inter- Hinton Industries, Inc.; Hogan & Hartson; national, Inc.; SRI Consulting; STA Amer- the major role for a comprehensive in- Holland & Knight LLP; Howard Systems ica; Standard Data Corporation; Stanford formation technology education re- International, Inc. Consulting Group; Sterling Commerce, Inc.; cruitment program. The Information IBM Corporation; IBM Global Services; Sterling Software, Inc.; Strategia Corpora- Technology Partnerships Amendment IBS Conversions, Inc.; IDC Governments, tion; Sun Microsystems/Gov’t Software offers an incentive for colleges and uni- Inc.; IMI Systems, Inc.; Immigration Law Group; SunGard Data Systems Inc.; Super- versities to leverage their existing re- Group, LLP; Information Management Re- lative Technologies, Inc.; SVI America Cor- sources, enter into partnerships with sources, Inc.; Information Systems Re- poration; Sybase Federal; Symantec Federal community groups and obtain input sources, Inc.; INPUT; Intermetrics, Inc.; Region; Syntel, Inc.; System One Technical, INTERSOLV, Inc.; Intertec Communica- Inc.; Systems & Computer Technology Cor- from industry groups to help educate tions, Inc.; Into 2000 Inc.; Introspect Corpora- poration. and prepare American citizens for tion; IONA Technologies. TCG Software, Inc.; TechnoPraxis Group these vast job opportunities. J.G. Van Dyke Associates, Inc.; James Inc.; Techquest, Inc.; The Comdyn Group; Colleges and universities would be Martin Government Consulting, Inc.; James, The Dun & Bradstreet Corporation; The Jef- expected to recruit the participants April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2545 who will be trained at the computer Mr. OWENS. Mr. Chairman, I demand Nation’s teachers. I strongly support education centers. Those recruits a recorded vote, and pending that, I that effort. would go on for college study. This make the point of order that a quorum My amendment would expand the amendment would encourage colleges is not present. focus of job development grants to in- to recruit actively those individuals The CHAIRMAN. Pursuant to House clude management training for school who would normally not be exposed to Resolution 411, further proceedings on superintendents and principals. such computer training and to the col- the amendment offered by the gen- I believe it is critical for the future lege environment. tleman from New York (Mr. OWENS) of our children that we provide better In low-income communities, as has will be postponed. management training to our school been documented by several articles in The point of no quorum is considered principals and superintendents, be- The Washington Post and the New withdrawn. cause they play a very significant role York Times, the exposure to computers Are there any further amendments to in the lives of our students, they play is not there. Students cannot learn this title II? a vital role in our public school system field or get involved in it unless they AMENDMENT NO. 19 OFFERED BY MR. EDWARDS in America. have the opportunity to practice on Mr. EDWARDS. Mr. Chairman, I offer Mr. Chairman it is interesting if we computers. an amendment. look at dozens and dozens of cases of So I urge that this amendment be The CHAIRMAN. The Clerk will des- school turnarounds around the country adopted, that we go into the 21st cen- ignate the amendment. where a school district had essentially tury with the participation of this The text of the amendment is as fol- the same amount of funds, the same committee on this particular piece of lows: students, the same teachers, and yet legislation to place us in the bargain- Amendment No. 19 Offered by Mr. ED- from one year to the next over a period ing process that is going to take place WARDS: of 2 years there was a significant turn- among all the committees to solve this In section 271 of the Higher Education Act around and improvement of morale and problem. of 1965, as amended by the manager’s amend- student achievement. The one common Mr. McKEON. Mr. Chairman, I rise in ment offered by the gentleman from Penn- bond we find in all of those cases is opposition to the gentleman’s amend- sylvania, strike ‘‘and’’ at the end of para- that there was a strong leader as a ment. graph (2), strike the period at the end of paragraph (3) and insert ‘‘; and’’, and after principal or as a superintendent that Mr. Chairman, the gentleman’s heart came into that school or district and is in the right place, he is trying to do such paragraph (3) insert the following new paragraph: used all of the many management what is right, and I think has some ‘‘(4) to provide competitive grants to skills necessary to lead an educational very good things that he is trying to do States for assistance in improving the mana- institution. in this amendment. This is a bipartisan gerial skills of school principals and super- It is no coincidence that corporations bill and we worked together on a lot of intendents. provide millions of dollars for manage- these areas, but it was one amendment In section 273(a) of the Higher Education ment training for their mid-level and Act of 1965, as amended by the manager’s that we were not able to accept. upper-level management personnel. Mr. Chairman, we just cannot do ev- amendment offered by the gentleman from Pennsylvania, add at the end the following And yet historically our Nation has erything with a Federal program. Ac- provided but a pittance for manage- cording to the Department of Edu- new paragraphs: ‘‘(7) Developing and implementing effective ment training of those principals and cation, more than 550,000 students were mechanisms to provide principals and super- superintendents who oversee products, enrolled in computer science programs intendents with advanced managerial skills. our children, far more important than in the 1995–96 academic year. The cur- ‘‘(8) Creating opportunities for school prin- a product of any corporation in this rent student aid program provides mil- cipals and superintendents to further their country. lions of individuals with the oppor- professional development by providing ad- Providing professional development tunity to pursue any field they choose vanced managerial skills training. opportunities and management train- as workforce demands change for dif- MODIFICATION TO AMENDMENT NO. 19 OFFERED ing will allow school administrators to ferent occupations. Students can BY MR. EDWARDS improve their skills. Improved manage- choose programs as short as 6 months Mr. EDWARDS. Mr. Chairman, I ask ment at both the school and district or as long as a Ph.D. unanimous consent that the amend- level will have a positive effect on stu- States that have shortages in finding ment be modified in the new form at dents, teachers and parents. employees to fill technical jobs can use the desk, which I believe is acceptable Students will learn more effectively funds they match under the State Stu- to the committee chairman, sub- in a positive environment and teachers, dent Incentive Program which is cur- committee chairman and full commit- like all employees anywhere, are rently authorized and appropriated for tee ranking member. happier and more effective under good providing student financial aid pro- The CHAIRMAN. The Clerk will re- leadership and strong management. grams targeted to those fields. port the modification. Or, as a last resort, we can do it with- The Clerk read as follows: Better trained administrators will im- prove the overall quality of our Na- out the Federal Government. We can Modification to amendment No. 19 offered tion’s education system. do a program like is being done in my by Mr. EDWARDS: district. We have a community college In section 273(a) of the Higher Education I believe it makes sense to focus on that joined with a city that joined with Act of 1965, as amended by the manager’s management training in business, and I several industries and put together a amendment offered by the gentleman from believe in this bill it will make sense program on their own to train employ- Pennsylvania, add at the end the following to focus a small amount of resources new paragraphs: on management training of our Na- ees. ‘‘(7) Developing and implementing effective I agree wholeheartedly with the gen- tion’s school superintendents and prin- mechanisms to provide principals and super- cipals. tleman from New York (Mr. OWENS) intendents with advanced managerial skills. that we should not be importing em- ‘‘(8) Creating opportunities for school prin- For that reason, I urge the passage of ployees. We should be doing a better cipals and superintendents to further their this amendment. job of training them. I think that there professional development by providing ad- Mr. ROEMER. Mr. Chairman, will the are just better ways to do it than in vanced managerial skills training. gentleman yield? this new amendment, and I would urge The CHAIRMAN. Is there objection Mr. EDWARDS. I yield to the gen- a ‘‘no’’ vote on the gentleman’s amend- to the modification to the amendment tleman from Indiana. ment. offered by the gentleman from Texas Mr. ROEMER. Mr. Chairman, I thank The CHAIRMAN. The question is on (Mr. EDWARDS)? the gentleman from Texas (Mr. ED- the amendment offered by the gen- There was no objection. WARDS) for yielding. tleman from New York (Mr. OWENS). Mr. EDWARDS. Mr. Chairman, this Mr. Chairman, I want to salute my The question was taken; and the bill wisely brings together State and good friend and classmate from the Chairman announced that the noes ap- local officials in a commitment to im- State of Texas for coming up with this peared to have it. proving the quality of training for our idea on this amendment. I support this H2546 CONGRESSIONAL RECORD — HOUSE April 29, 1998 amendment for three reasons: First of SEC. 206. ACCOUNTABILITY FOR INSTITUTIONS counselors, and the employers of graduates all because it expands the quality man- OF HIGHER EDUCATION THAT PRE- of such institutions, their pass rate for grad- PARE TEACHERS. uates of the institution on each of the agement to the very top level. It does Title II is further amended by adding at not make any sense for us in business State’s initial teacher certification and li- the end the following new part: censing assessments for the most recent year to say that the middle managers are ‘‘PART F—ACCOUNTABILITY FOR INSTITU- for which data are available at the time of going to get trained but then it is CEOs TIONS OF HIGHER EDUCATION THAT publication of such materials. are not going to be eligible for that PREPARE TEACHERS ‘‘(c) IDENTIFICATION OF INSTITUTIONS WITH training. ‘‘SEC. 281. DATA COLLECTION. PASSING RATES BELOW 70 PERCENT.—Each Secondly, I am going to support this ‘‘(a) DATA REQUIRED.—Within one year State shall submit to the Secretary a list of amendment because I believe sharing after the date of enactment of the Higher institutions of higher education that prepare this expertise is one of the most criti- Education Amendments of 1998, and annually teachers and receive Federal funds under cal functions in professional develop- thereafter, the Secretary shall collect from this Act for which, for the preceding year, each State receiving funds under this Act less than 70 percent of graduates who took ment. We have an award where we have any of the State’s initial teacher licensing a local teacher who just won it, the and publish the following information: ‘‘(1) A description of the teacher licensing and credentialing assessments failed to re- Christa McAuliffe award. She came and credentialing assessments used by each ceive a passing score on any such assess- back from spending several days in State, including any and all assessments re- ment. For each assessment, data shall be California with fellow teachers and quired in the subject matter area or areas in disaggregated by the institution of higher came back to school in South Bend, In- which a teacher provides instruction. education from which the student received diana, and never had the time to share ‘‘(2) The standards and criteria established his or her most recent degree, unless such the knowledge and the good things by each State that teachers or prospective degree was granted more than 3 years prior teachers must meet in order to receive a to the date such assessment was adminis- that she gleaned from the other teach- tered. ers with her fellow teachers in South passing score on such assessments, including information on the extent to which passing ‘‘SEC. 283. STATE FUNCTIONS. Bend. We need to provide more oppor- such examinations is required in order for an ‘‘(a) STATE ASSESSMENT.—In order to re- tunities for this quality enhancement individual to be a classroom teacher. ceive funds under this Act, a State shall, no in management. ‘‘(3) Information on the extent to which later than one year after the date of enact- And lastly, because the world is teachers or prospective teachers in each ment of the Higher Education Amendments changing so quickly, we have tech- State are required to take examinations or of 1998, have in place a procedure to identify nology and software that many teach- other assessments of their subject matter low performing programs of teacher prepara- ers who have been teaching for 20 years knowledge in the area or areas in which they tion within institutions of higher education. Such levels of performance shall be deter- are not keeping up with this tech- provide instruction, the standards estab- lished for passing any such assessments, and mined solely by the State and may include nology and software improvement. We the extent to which teachers or prospective criteria based upon information collected need to be able to get into the class- teachers are required to receive a passing pursuant to this part. Such assessment shall rooms, whether they be principals or score on such assessments in order to teach be described in the report under section 281. whether they be teachers, all of the in specific subject areas or grade levels. ‘‘(b) TERMINATION OF ELIGIBILITY.—Any in- people together working on profes- ‘‘(4) Information on the extent to which stitution of higher education that offers a sional development and enhancing the each State waives teacher credentialing and program of teacher preparation in which the quality of teaching in our schools. licensing requirements, including the pro- State has withdrawn its approval or termi- portion of all teachers or prospective teach- nated its financial support due to the low So I salute the gentleman. I applaud performance of its teacher preparation pro- him for this good amendment, and I en- ers in the State for whom such licensing and credentialing requirements have been waived gram based upon the State assessment de- courage my colleagues to vote for it. and the distribution of such individuals scribed in section (a)— b 2130 across high- and low-poverty schools and ‘‘(1) shall be ineligible for any funding for across grade levels and subject areas. professional development activities awarded Mr. MCKEON. Mr. Chairman, I move ‘‘(5) The pass rate, for the preceding year, by the Department of Education; and to strike the last word. on all teacher licensing and credentialing as- ‘‘(2) shall not be permitted to accept or en- Mr. Chairman, I want to commend sessments for all individuals in the State roll any student that receives aid under title the gentleman from Texas. He is not a who took such assessments, disaggregated by IV of this Act in its teacher preparation pro- member of the committee, but he has the institution of higher education from gram. great appreciation for education, and which the teacher received his or her most ‘‘SEC. 284. NEGOTIATED RULEMAKING. he has put a lot of thought in this recent degree. ‘‘If the Secretary develops any regulations amendment, and I think it really ‘‘(b) COORDINATION.—The Secretary, to the implementing section 283(b)(2), the Secretary extent practicable, shall coordinate the in- shall submit such proposed regulations to a strengthens the bill. I would be happy formation collected and published under this negotiated rulemaking process which shall to accept it. part among States for individuals who took include representatives of States and institu- Mr. EDWARDS. Mr. Chairman, if the State teacher licensing or credentialing as- tions of higher education for their review gentleman will yield, I thank the sessments in a State other than the State in and comment. Chairman and full committee chair- which the individual received his or her most Mr. MILLER of California. Mr. Chair- man and the ranking member for their recent degree. man, teacher preparation is the foun- support and help and leadership on this ‘‘(c) USE OF LOCAL AGENCIES.—For each State in which there are no State licensing dation of our entire educational sys- issue. tem. All across the Nation, States and The CHAIRMAN. Is there further dis- or credentialing assessments, the Secretary shall, to the extent practicable, collect data local school districts are raising the cussion on the amendment? comparable to the data described in para- standards for what students should The question is on the amendment, graphs (1) through (5) of subsection (a) from know and be able to do. If we are truly as modified, offered by the gentleman local educational agencies, colleges and uni- serious about helping all of these stu- from Texas (Mr. EDWARDS). versities, or other entities that administer dents meet these new standards, we The amendment, as modified, was such assessments to teachers or prospective must ensure that the teachers of the teachers. agreed to. future have the requisite knowledge ‘‘SEC. 282. DATA DISSEMINATION. AMENDMENT NO. 49 OFFERED BY MR. MILLER OF and skills to get them there. ‘‘(a) EFFECTIVE DATE OF REQUIREMENTS.— CALIFORNIA One important step in meeting that Mr. MILLER of California. Mr. Chair- The data required to be distributed under this section shall be distributed beginning goal is to strengthen the quality of man, I offer an amendment. programs that prepare our prospective The CHAIRMAN. The Clerk will des- within 3 years after the date of enactment of the Higher Education Amendments of 1998 teachers. While many colleges and uni- ignate the amendment. and annually thereafter. versities do a fine job of preparing The text of the amendment is as fol- ‘‘(b) PASSING RATES.—Each institution of teachers, others fall short, sometimes lows: higher education that has a course of study far short, in providing the prospective that prepares elementary and secondary Amendment No. 49 offered by Mr. MILLER teachers with the education and train- of California: school teachers and receives Federal funds Page 68, line 12, redesignate section 206 as will report and distribute widely, including ing that they need. This bill presents section 207, and before such line insert the through prominent publications such as an opportunity. following new section (and conform the table catalogs and promotional materials sent to In the committee, I offered an of contents accordingly): potential applicants, high school guidance amendment which would have cut off April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2547 funding for teacher colleges that did One of the things we heard over and Again, I want to thank the gen- not meet a certain test. That amend- over and over, we heard it from con- tleman from California (Mr. MCKEON), ment was not accepted. Since that servatives and from liberals, from pro- the subcommittee chairman, and the time, I have been spending time with fessionals in the field and from critics gentleman from Pennsylvania (Mr. the minority and other members of the in the field, the teacher quality is ar- GOODLING), chairman, for all of their committee to work on this amendment guably the most important factor out- help and their effort and their counsel to see whether or not we can get it ac- side of family affecting student in coming to an agreement on this ceptable. I want to thank the gen- achievement. amendment. tleman from Pennsylvania (Mr. GOOD- I believe that this amendment directs Mr. GOODLING. Mr. Chairman, I LING), the chairman, and the gen- both information to people who want move to strike the last word. tleman from California (Mr. MCKEON), to become teachers and that hold Mr. Chairman, I want to point out the subcommittee chairman, for all of teacher colleges accountable should that the initial amendment that the their help and support on this amend- those States decide to do it. gentleman from California (Mr. MIL- ment. I want to thank the gentleman We ought to understand that teacher LER) had offered I had considerable from Tennessee (Mr. FORD) for all of quality accounts, according to infor- problems with. It has been dramati- his help with this amendment. mation given to our committee, for 43 cally modified, and I would like to ex- We offer this amendment to try to percent of the variance in student plain that. encourage States and to increase, one, achievement scores. Other information I want to highlight what I believe the information about their schools of from the University of Tennessee indi- represents a significant difference be- education and how they are doing, and cates that poor teachers in early tween this amendment and the earlier to make sure that that information is grades have serious and long-lasting ef- versions that were offered by the gen- disseminated to prospective candidates fects on the achievement of our stu- tleman from California (Mr. MILLER) to those schools so that they will un- dents. during the full committee of this legis- derstand when they go to that school That is what this amendment is de- lation. what is the passage rate at that school; signed to remedy. It does it in a far dif- Specifically, this amendment does and also to disseminate to the policy- ferent fashion than I offered it in com- not include a minimum Federal pass makers within that State exactly what mittee. I think it is consistent with the rate standard. Under that proposal, in- is the status of that school. concerns the minority had that the stitutions of higher education failing I think this is very important be- States be able to continue to keep con- to meet this Federal standard would cause the Federal Government provides trol of these systems. It does it in a have automatically lost access to title about $1.8 billion in Federal support to consistent way with actions that were IV student loan funding. schools of education, that is grants, seen taken in States like New York, I had several problems with that ap- loans, and work studies, in 1995 and Florida, Texas, California, Pennsyl- proach, because I do not support plac- 1996 alone and does not count other vania, and others that are all moving ing a Federal standard on States and Federal monies that flows to these in this direction. institutions that would dictate when schools. It augments, I think, some very im- Federal funds would be terminated. I I think it is important that we know portant steps that have already been do not believe that Washington should and the prospective students in these taken in this legislation to increase set such a standard. schools know what it is that they will the ability of this legislation to ad- Second, I thought the approach was get when they enroll in these schools. dress teacher quality through student too arbitrary given that nearly all What my amendment would do, after loan forgiveness for qualified teachers States have different tests which they much conversation and consultation who teach in high-priority schools, require for teacher licensure, and those with the minority and others, it would grants to States for upgrading student that have similar tests often score see to it that the schools of education teacher preparation, and certification them very differently. I believe that would try and prepare the students who systems and partnerships between col- this approach would have, in effect, pe- want to become teachers of the future nalized those States with the hardest to meet the quality standards set by leges and school districts to provide in- tests while at the same time provide a those States; not quality standards set tensive professional development pro- disincentive to States which, under our by the Federal Government, but qual- gram. The CHAIRMAN. The time of the block grants, we have encouraged to ity standards set by those States. It is intended to spur the schools of gentleman from California (Mr. MIL- strengthen our exams and focus more education to undertake reforms that LER) has expired. on content knowledge. will upgrade the quality of the teacher (By unanimous consent, Mr. MILLER I was concerned about terminating preparation programs. It is designed to of California was allowed to proceed for title IV student aid to an institution send a message to schools and to col- 1 additional minute.) based on this arbitrary Federal stand- leges and universities that they should Mr. MILLER of California. Mr. Chair- ard. Under the new amendment, there raise the status of teacher education to man, I do this because we have got to is no Federal pass rate standard. In- a level similar to the programs of other make sure that, for the quality edu- stead, States will implement proce- professionals. cation that we know our economy and dures to identify low-performing teach- We very often hear that we do not American society and the world econ- er preparation programs based upon pay teachers enough or we do not treat omy are going to demand of our chil- performance determined solely by the them like professionals. But until such dren and the children, future grad- State. time as we have the quality standards uates, of our systems of higher edu- In the event a State ends financial to gain the confidence of the American cation, that we have got to provide assistance or approval for a low-per- public, it is likely that we will con- them with quality education. forming teacher preparation program, tinue to underpay our teachers. I think No longer can we have a situation this amendment would also ensure that that that is most unfortunate. where barely a quarter of the appli- such institution would not be eligible This amendment is also designed to cants in New York who were seeking a for any Federal professional develop- provide greater accountability for the teaching position on Long Island could ment funds from the U.S. Department money that the Federal Government pass the high school graduation of Education, nor would such programs spends. Why do we do this? We do this English test. We can no longer accept be permitted to accept or enroll stu- because teacher quality is important. that. dents in its teacher preparation pro- Earlier this evening, I talked about Teachers deserve to have professional gram. how our committee held hearings and status. They deserve to have profes- The bottom line is that the Federal listened to constructive critics of the sional pay. I believe this goes a long Government should not fund the teach- current system of higher education and way toward helping that situation out er preparation program which the teaching and education and all that and providing some accountability for State itself does not support due to its went with it, and we heard a lot of evi- schools where taxpayers invest billions poor quality and in which the State dence. of dollars. has terminated State funds. H2548 CONGRESSIONAL RECORD — HOUSE April 29, 1998 Let me make a point with respect to (2) by amending paragraph (3) of subsection (d) APPLICATIONS.—Title III is amended by the information which States will have (b) to read as follows: striking section 314 (20 U.S.C. 1059a) and insert- to collect and disseminate. It is my un- ‘‘(3) Special consideration shall be given to ing the following: derstanding that this information, applications which propose, pursuant to the in- ‘‘SEC. 314. APPLICATIONS. stitution’s plan, the use of funds for integrating ‘‘Each eligible institution desiring to receive such as pass rates for teacher license computer technology into institutional facilities exams, is already collected by many assistance under this part shall submit an appli- to create smart buildings.’’; and cation in accordance with the requirements of States and institutions. However, this (3) by adding at the end the following new section 351.’’. information is rarely provided to pro- subsections: (e) PROGRAM FOR TRIBALLY CONTROLLED COL- UTHORIZED CTIVITIES spective students who are trying to ‘‘(c) A A .—Grants award- LEGES AND UNIVERSITIES.—Section 316 (20 U.S.C. make informed decisions regarding ed under this section shall be used for one or 1059c) is amended to read as follows: which program or institution to at- more of the following activities: ‘‘(1) purchase, rental, or lease of scientific or ‘‘SEC. 316. AMERICAN INDIAN TRIBALLY CON- tend. By ensuring this information is TROLLED COLLEGES AND UNIVER- laboratory equipment for educational purposes, SITIES. made available, I believe there will be including instructional and research purposes; more competition between these pro- ‘‘(a) PROGRAM AUTHORIZED.—The Secretary ‘‘(2) construction, maintenance, renovation, shall provide grants and related assistance to grams resulting in better programs. and improvement in classrooms, libraries, lab- American Indian Tribal Colleges and Univer- With the modifications and with the oratories, and other instructional facilities; sities to enable such institutions to improve and ‘‘(3) support of faculty exchanges, faculty de- changes, we accept the amendment of- expand their capacity to serve Indian students. velopment, and faculty fellowships to assist in fered by the gentleman from California ‘‘(b) DEFINITIONS.—For the purposes of this attaining advanced degrees in their field of in- (Mr. MILLER). section: struction; ‘‘(1) The term ‘Indian’ has the same meaning Mr. KILDEE. Mr. Chairman, I move ‘‘(4) purchase of library books, periodicals, as in section 2 of the Tribally Controlled Com- to strike the requisite number of and other educational materials, including tele- munity Colleges Act of 1978. words. communications program material; ‘‘(2) The term ‘Indian tribe’ has the same Mr. Chairman, this is certainly a bet- ‘‘(5) tutoring, counseling, and student service meaning as in section 2 of such Act. ter amendment than was offered in programs designed to improve academic success; ‘‘(3) The term ‘Tribal College or University’ ‘‘(6) funds management, administrative man- committee, but it does add elaborate has the meaning given the term ‘tribally con- agement, and acquisition of equipment for use and costly new comprehensive report- trolled college or university’ in section 2 of such in strengthening funds management; ing requirements for States. Act, and includes an institution listed in the Eq- ‘‘(7) joint use of facilities, such as laboratories Some States, under this amendment, uity in Educational Land Grant Status Act of and libraries; would be required to provide informa- ‘‘(8) establishing or improving a development 1994. tion they do not currently collect. It office to strengthen or improve contributions ‘‘(4) The term ‘institution of higher education’ also adds new substantial and costly from alumni and the private sector; means an institution of higher education as de- reporting requirements for higher edu- ‘‘(9) establishing or improving an endowment fined by section 101(a)(1) of this Act, except that cation institutions. fund; subparagraph (A)(ii) of such section shall not be applicable. This information, as it is required to ‘‘(10) creating or improving facilities for Inter- net or other distance learning academic instruc- ‘‘(c) AUTHORIZED ACTIVITIES.—Grants award- be reported under the amendment, ed under this section shall be used by Tribal gives potentially misleading informa- tion capabilities, including purchase or rental of telecommunications technology equipment or Colleges or Universities to assist such institu- tion about the performance of edu- services; and tions to plan, develop, undertake, and carry out cation programs and should not be- ‘‘(11) other activities proposed in the applica- authorized activities. Such authorized activities come the basis for terminating Federal tion submitted pursuant to subsection (c) that— may include— or State support alone. ‘‘(A) contribute to carrying out the purposes ‘‘(1) purchase, rental, or lease of scientific or Finally, the amendment appears to of this section; and laboratory equipment for educational purposes, condition future eligibility for Federal ‘‘(B) are approved by the Secretary as part of including instructional and research purposes; the review and acceptance of such application. ‘‘(2) construction, maintenance, renovation, student loans and grants for education and improvement in classrooms, libraries, lab- programs based solely on the level of ‘‘(d) ENDOWMENT FUND LIMITATIONS.— ‘‘(1) PORTION OF GRANT.—An institution may oratories, and other instructional facilities, in- State financial support. not use more than 20 percent of its grant under cluding purchase or rental of telecommuni- The full effect of this amendment is this part for any fiscal year for establishing or cations technology equipment or services; not really known; however, it could improving an endowment fund. ‘‘(3) support of faculty exchanges, faculty de- have an adverse effect upon certain in- ‘‘(2) MATCHING REQUIRED.—An institution velopment, and faculty fellowships to assist in stitutions such as historically black that uses any portion of its grant under this attaining advanced degrees in their field of in- colleges and universities as well as oth- part for any fiscal year for establishing or im- struction; ers. proving an endowment fund shall provide an ‘‘(4) academic instruction in disciplines in equal or greater amount for such purposes from which American Indians are underrepresented; It is also reminiscent, Mr. Chairman, ‘‘(5) purchase of library books, periodicals, of the State postsecondary review enti- non-Federal funds. ‘‘(3) REGULATIONS.—The Secretary shall pub- and other educational materials, including tele- ties which H.R. 6 repeals. I recently re- lish rules and regulations specifically governing communications program material; ceived a letter from the American the use of funds for establishing or improving ‘‘(6) tutoring, counseling, and student service Council on Education which urges our an endowment fund.’’. programs designed to improve academic success; vigorous opposition to this, quote, (b) ENDOWMENT FUND DEFINITION.—Section ‘‘(7) funds management, administrative man- heavy-handed Federal intrusion. 312 (20 U.S.C. 1058) is amended by adding at the agement, and acquisition of equipment for use I certainly would like to work with end the following new subsection: in strengthening funds management; the sponsor of this amendment, the ‘‘(g) ENDOWMENT FUND.—For the purpose of ‘‘(8) joint use of facilities, such as laboratories this part, the term ‘endowment fund’ means a and libraries; gentleman from California (Mr. MIL- fund that— ‘‘(9) establishing or improving a development LER), in conference to address his goal ‘‘(1) is established by State law, by an institu- office to strengthen or improve contributions of improving the quality of teacher in- tion of higher education, or by a foundation from alumni and the private sector; struction, but I feel this is a defective that is exempt from Federal income taxation; ‘‘(10) establishing or enhancing a program of device to achieve that. ‘‘(2) is maintained for the purpose of generat- teacher education designed to qualify students The CHAIRMAN. The question is on ing income for the support of the institution; to teach in elementary or secondary schools, the amendment offered by the gen- and with a particular emphasis on teaching Amer- tleman from California (Mr. MILLER). ‘‘(3) does not include real estate.’’. ican Indian children and youth, that shall in- The amendment was agreed to. (c) DURATION OF GRANT.—Section 313 (20 clude, as part of such program, preparation for The CHAIRMAN. Are there further U.S.C. 1059) is amended— teacher certification; (1) in subsection (a), by inserting before the ‘‘(11) establishing community outreach pro- amendments to title II? period at the end the following: ‘‘, except that grams which will encourage American Indian el- The Clerk will designate title III. no institution shall be eligible to secure a subse- ementary and secondary students to develop the The text of title III is as follows: quent 5-year grant award under this part until academic skills and the interest to pursue post- TITLE III—INSTITUTIONAL AID two calendar years have elapsed since the expi- secondary education; SEC. 301. STRENGTHENING INSTITUTIONS. ration of its most recent 5-year grant award’’; ‘‘(12) establishing or improving an endowment (a) PROGRAM PURPOSE; USE OF FUNDS.—Sec- and fund; and tion 311 (20 U.S.C. 1057) is amended— (2) in subsection (b), by inserting ‘‘subsection ‘‘(13) other activities proposed in the applica- (1) in subsection (b)(2), by striking ‘‘or’’ at the (c) and a grant under’’ before ‘‘section tion submitted pursuant to this subsection end of subparagraph (A) and inserting ‘‘and’’; 354(a)(1)’’. that— April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2549 ‘‘(A) contribute to carrying out the purposes ‘‘(2) construction, maintenance, renovation, (C) by striking paragraph (2) and inserting of this section; and and improvement in classroom, library, labora- the following: ‘‘(B) are approved by the Secretary as part of tory, and other instructional facilities used ex- ‘‘(2) the next $1,000,000 in excess of $26,000,000 the review and acceptance of such application. clusively for the purposes of this section, includ- shall be available for the purpose of making ‘‘(d) APPLICATION PROCESS.— ing purchase or rental of telecommunications grants to institutions or programs identified in ‘‘(1) INSTITUTIONAL ELIGIBILITY.—To be eligi- technology equipment or services; subparagraphs (Q) and (R) of subsection (e)(1); ble to receive assistance under this section, an ‘‘(3) purchase of library books, periodicals, and institution shall be an institution which— technical and other scientific journals, micro- ‘‘(3) if the amount appropriated exceeds ‘‘(A) is an eligible institution under section film, microfiche, and other educational mate- $27,000,000, the Secretary shall develop a for- 312(b); rials, including telecommunications program mula for making allotments of such excess to ‘‘(B) is eligible to receive assistance under the materials; each of the institutions or programs identified in Tribally Controlled Community College Assist- ‘‘(4) scholarships, fellowships, and other fi- subparagraphs (A) through (R) using the fol- ance Act of 1978 (Public Law 95–471); or ‘‘(C) is eligible to receive funds under the Eq- nancial assistance for needy graduate and pro- lowing elements: uity in Educational Land Grant Status Act of fessional students to permit their enrollment in ‘‘(A) the number of students enrolled in the el- 1994. and completion of the doctoral degree in medi- igible institution’s professional or graduate ‘‘(2) APPLICATION.—Any institution desiring cine, dentistry, pharmacy, veterinary medicine, school, or qualified graduate program which re- to receive assistance under this section shall law, and the doctorate degree in the physical or ceived funding under this section in the pre- submit an application to the Secretary at such natural sciences, engineering, mathematics, or vious year; time, and in such manner, as the Secretary may other scientific disciplines in which African ‘‘(B) the average cost of education per student by regulation reasonably require. Each such ap- Americans are underrepresented; for all full-time graduate or professional stu- plication shall include— ‘‘(5) establish or improve a development office dents (or the equivalent) enrolled in the eligible ‘‘(A) a 5-year plan for improving the assist- to strengthen and increase contributions from professional school, graduate school or doctoral ance provided by the Tribal College or univer- alumni and the private sector; students in the qualified graduate program; and sity to Indian students, increasing the rates at ‘‘(6) assist in the establishment or mainte- ‘‘(C) the number of students who received which Indian high school students enroll in nance of an institutional endowment to facili- their first professional or doctoral degree at the higher education, and increasing overall post- tate financial independence pursuant to section professional or graduate school or the qualified secondary retention rates for Indian students; 331 of this title; and graduate program in the preceding year for and ‘‘(7) funds and administrative management, which the institution received funding under ‘‘(B) such enrollment data and other informa- and the acquisition of equipment, including this section.’’. tion and assurances as the Secretary may re- software, for use in strengthening funds man- (5) HOLD HARMLESS RULE.—Section 326 is fur- quire to demonstrate compliance with subpara- agement and management information sys- ther amended by adding at the end the follow- graphs (A) and (B) of paragraph (1). tems.’’. ing new subsection: ‘‘(3) SPECIAL RULE.—For the purposes of this (3) ELIGIBILITY.—Section 326(e) (20 U.S.C. ‘‘(g) HOLD HARMLESS RULE.—Notwithstand- part, no Tribal College or University which is el- 1063b(e)) is amended— ing paragraphs (2) and (3) of subsection (f), no igible for and receives funds under this section (A) in paragraph (1) institution or qualified program identified in may concurrently receive other funds under this (i) by striking ‘‘include—’’ and inserting ‘‘are subsection (e)(1) that received a grant for fiscal part or part B.’’. the following:’’; year 1998 and that is eligible to receive a grant SEC. 302. HISTORICALLY BLACK COLLEGES AND (ii) by inserting ‘‘and other qualified graduate in a subsequent fiscal year shall receive a grant UNIVERSITIES. programs’’ before the semicolon at the end of amount in any such subsequent fiscal year that (a) USES OF FUNDS.—Section 323(a) (20 U.S.C. subparagraphs (F) through (J); is less than the grant amount received for fiscal 1062(a)) is amended— (iii) by striking ‘‘and’’ at the end of subpara- year 1998, unless the amount appropriated is not (1) by redesignating paragraph (12) as para- graph (O); sufficient to provide such grant amounts to all graph (13); and (iv) by inserting ‘‘University’’ after ‘‘Jackson such institutions and programs.’’. (2) by inserting after paragraph (11) the fol- State’’ in subparagraph (P); SEC. 303. MINORITY SCIENCE AND ENGINEERING lowing new paragraph: (v) by striking the period at the end of such IMPROVEMENT PROGRAM. ‘‘(12) Establishing or improving an endowment subparagraph and inserting a semicolon; and (a) AMENDMENT.—Title III (20 U.S.C. 1051) is fund.’’. (vi) by inserting after such subparagraph the amended— (b) LIMITATIONS.—Section 323(b) is amended following new subparagraphs: by striking paragraph (3) and inserting the fol- (1) by redesignating part D as part E; and ‘‘(Q) Norfolk State University qualified grad- (2) by inserting after part C the following new lowing: uate program; and part: ‘‘(3)(A) An institution may not use more than ‘‘(R) Tennessee State University qualified ‘‘PART D—MINORITY SCIENCE AND 20 percent of its grant under this part for any graduate program.’’; and ENGINEERING IMPROVEMENT PROGRAM fiscal year for establishing or improving an en- (B) by striking paragraphs (2) and (3) and in- dowment fund. serting the following: ‘‘SEC. 341. PROGRAM AUTHORIZED. ‘‘(B) An institution that uses any portion of ‘‘(2) QUALIFIED GRADUATE PROGRAM.—For the ‘‘The Secretary shall, in accordance with the its grant under this part for any fiscal year for purposes of this section, the term ‘qualified provisions of this part, carry out a program of establishing or improving an endowment fund graduate program’ means a graduate or profes- making grants to institutions of higher edu- shall provide an equal or greater amount for sional program that provides an accredited pro- cation that are designed to effect long-range im- such purposes from non-Federal funds. provements in science and engineering edu- ‘‘(C) The Secretary shall publish rules and gram of instruction in the physical or natural sciences, engineering, mathematics, or other sci- cation, and improve support programs for mi- regulations specifically governing the use of nority students enrolled in science and engineer- funds for establishing or improving an endow- entific discipline in which African Americans are underrepresented and has students enrolled ing programs at predominantly minority institu- ment fund.’’. tions. (c) PROFESSIONAL OR GRADUATE INSTITU- in such program at the time of application for a ‘‘SEC. 342. USE OF FUNDS. TIONS.— grant under this section. (1) GENERAL AUTHORIZATION.—Section 326(a) ‘‘(3) SPECIAL RULE.—Institutions that were ‘‘Funds appropriated for the purpose of this (20 U.S.C. 1063b(a)) is amended— awarded grants under this section prior to Octo- subpart may be made available for— (A) in paragraph (1), by inserting ‘‘in mathe- ber 1, 1998, shall continue to receive such ‘‘(1) providing needed services to groups of mi- matics or the physical or natural sciences’’ after grants, subject to the availability of appro- nority institutions or providing training for sci- ‘‘graduate education opportunities’’; and priated funds, regardless of the eligibility of the entists and engineers from eligible minority in- (B) in paragraph (2), by striking ‘‘except institutions described in subparagraphs (Q) and stitutions; that’’ and all that follows and inserting the fol- (R) of paragraph (1).’’; and ‘‘(2) providing needed services to groups of in- lowing: ‘‘, except that no institution shall be re- (C) in paragraph (4), by inserting before the stitutions serving significant numbers of minor- quired to match any portion of the first $500,000 period at the end the following: ‘‘, except that ity students or providing training for scientists of its award from the Secretary. After alloca- the president or chancellor of the institution and engineers from such institutions to improve tions are made to each eligible institution under may decide which graduate or professional their ability to train minority students in the funding rules provided in subsection (f), the school or qualified graduate program will re- science or engineering; Secretary shall reallocate, on a pro rata basis, ceive funds under the grant in any one fiscal ‘‘(3) assisting minority institutions to improve any amounts which remain unallocated (by rea- year’’. the quality of preparation of their students for son of the failure of an institution to comply (4) FUNDING RULE.—Section 326(f) (20 U.S.C. graduate work or careers in science, mathe- with the matching requirements of this para- 1063b(f)) is amended— matics, and technology; graph) among the institutions that have com- (A) by striking ‘‘Of the amount appropriated’’ ‘‘(4) improving access of undergraduate stu- plied with such matching requirement.’’. and inserting ‘‘Subject to subsection (g), of the dents at minority institutions to careers in the (2) USE OF FUNDS.—Section 326(c) (20 U.S.C. amount appropriated’’; sciences, mathematics, and engineering; 1063b(c)) is amended by striking paragraphs (1) (B) in paragraph (1)— ‘‘(5) improving access of minority students, through (3) and inserting the following: (i) by striking ‘‘$12,000,000’’ and inserting particularly minority women, to careers in the ‘‘(1) purchase, rental or lease of scientific or ‘‘$26,000,000’’; and sciences, mathematics, and engineering; laboratory equipment for educational purposes, (ii) by striking ‘‘(A) through (E)’’ and insert- ‘‘(6) improving access for pre-college minority including instructional and research purposes; ing ‘‘(A) through (P)’’. students to careers in science, mathematics, and H2550 CONGRESSIONAL RECORD — HOUSE April 29, 1998 engineering through community outreach pro- 5 of the United States Code governing appoint- (1) by striking ‘‘or’’ at the end of paragraph grams conducted through colleges and univer- ments in the competitive service, not less than (5); sities eligible for support through the Minority one technical employees with appropriate sci- (2) by redesignating paragraph (6) as para- Science and Engineering Improvement Pro- entific and educational background to admin- graph (7); and grams; ister the programs under this part who may be (3) by inserting after paragraph (5) the follow- ‘‘(7) disseminating activities, information, and paid without regard to the provisions of chapter ing new paragraph: educational materials designed to address spe- 51 and subchapter III of chapter 53 of such title ‘‘(6) that is a tribally controlled community cific barriers to the entry of minorities into relating to classification and General Schedule college as defined in the Tribally Controlled science and technology, and conducting activi- pay rates. Community College Act of 1978; or’’. ties and studies concerning the flow of under- ‘‘(b) PROCEDURES FOR GRANT REVIEW.—The (d) APPLICATION REVIEW PROCESS.—Section represented ethnic minorities into scientific ca- Secretary shall establish procedures for review- 353(a) (20 U.S.C. 1068(a)) is amended— reers; ing and evaluating grants and contracts made (1) in paragraph (2), by striking ‘‘Native ‘‘(8) supporting curriculum models to encour- or entered into under such programs. Proce- American colleges and universities’’ and insert- age minority student participation in research dures for reviewing grant applications, based on ing ‘‘Tribal Colleges and Universities’’; and careers in science, mathematics, and technology; the peer review system, or contracts for finan- (2) in paragraph (3)— and cial assistance under this title may not be sub- (A) by striking subparagraph (A); and ‘‘(9) improving the capability of minority in- ject to any review outside of officials responsible (B) by redesignating subparagraphs (B) and stitutions for self-assessment, management, and for the administration of the Minority Science (C) as subparagraphs (A) and (B), respectively. evaluation of their science, mathematics, and and Engineering Improvement Program. (e) CONTINUATION AWARDS.—Part D of title III engineering programs and dissemination of their ‘‘SEC. 347. DEFINITIONS. is amended by inserting after section 354 (20 results. ‘‘For the purpose of this part— U.S.C. 1069) the following new section: ‘‘SEC. 343. ELIGIBILITY FOR GRANTS. ‘‘(1) The term ‘minority institution’ means an ‘‘SEC. 355. CONTINUATION AWARDS. ‘‘The Secretary may make grants under this institution of higher education whose enroll- ‘‘The Secretary shall make continuation part to minority institutions (as defined in sec- ment of a single minority or a combination of awards under this title for the second and suc- tion 347), organizations, and entities to enable minorities (as defined in paragraph (2)) exceeds ceeding years of a grant only after determining them to carry out programs and activities au- 50 percent of the total enrollment. The Secretary that the recipient is making satisfactory thorized by this part: shall verify this information from the data on progress in carrying out the grant.’’. ‘‘(1)(A) institutions of higher education grant- enrollments in the higher education general in- (f) AUTHORIZATION OF APPROPRIATIONS.—Sec- ing baccalaureate degrees; and formation surveys (HEGIS) furnished by the in- tion 360 (20 U.S.C. 1069f) is amended— ‘‘(B) institutions of higher education granting stitution to the Office for Civil Rights, Depart- (1) by striking subsection (a) and inserting the associate degrees which— ment of Education. following: ‘‘(i) have a curriculum including science or ‘‘(2) The term ‘minority’ means American In- ‘‘(a) AUTHORIZATIONS.— engineering subjects; dian, Alaskan Native, Black (not of Hispanic ‘‘(1) PART A.—(A) There are authorized to be ‘‘(ii) apply jointly with institutions described origin), Hispanic (including persons of Mexican, appropriated to carry out part A (other that sec- in subparagraph (A); and Puerto Rican, Cuban, and Central or South ‘‘(iii) have an articulation agreement with in- tions 316), $135,000,000 for fiscal year 1999, and American origin), Pacific Islander or other eth- such sums as may be necessary for each of the stitutions described in subparagraph (A) for its nic group underrepresented in science and engi- science or engineering students; and 4 succeeding fiscal years. neering. ‘‘(B) There are authorized to be appropriated ‘‘(2) consortia of— ‘‘(3) The term ‘science’ means, for the purpose to carry out section 316, $10,000,000 for fiscal ‘‘(A) institutions which have a curriculum in of this program, the biological, engineering, year 1999, and such sums as may be necessary science or engineering; mathematical, physical, behavioral, and social for each of the 4 succeeding fiscal years. ‘‘(B) graduate institutions which have a cur- sciences, and history and philosophy of science; ‘‘(2) PART B.—(A) There are authorized to be riculum in science or engineering; also included are interdisciplinary fields which appropriated to carry out part B (other than ‘‘(C) Federal Education Research Centers; are comprised of overlapping areas among two ‘‘(D) research laboratories of, or under con- section 326), $135,000,000 for fiscal year 1999, or more sciences.’’. tract with, the Department of Energy; and such sums as may be necessary for each of ‘‘(E) private organizations which have science SEC. 304. GENERAL PROVISIONS. the 4 succeeding fiscal years. or engineering facilities; or (a) APPLICATIONS FOR ASSISTANCE.—Section ‘‘(B) There are authorized to be appropriated ‘‘(F) quasi-governmental entities which have 351(a) (20 U.S.C. 1066(a)) is amended to read as to carry out section 326, $35,000,000 for fiscal a significant scientific or engineering mission; follows: year 1999, and such sums as may be necessary to enable such institutions and consortia to ‘‘(a) APPLICATIONS.— for each of the 4 succeeding fiscal years. ‘‘(1) APPLICATIONS REQUIRED.—Any institu- carry programs and activities authorized by this ‘‘(3) PART C.—There are authorized to be ap- tion which is eligible for assistance under this part. propriated to carry out part C, $10,000,000 for title shall submit to the Secretary an application ‘‘SEC. 344. GRANT APPLICATION. fiscal year 1999, and such sums as may be nec- for assistance at such time, in such form, and ‘‘(a) SUBMISSION AND CONTENTS OF APPLICA- essary for each of the 4 succeeding fiscal years. containing such information, as may be nec- TIONS.—An eligible applicant (as determined ‘‘(4) PART D.—There are authorized to be ap- essary to enable the Secretary to evaluate its under section 343) that desires to receive a grant propriated to carry out Part D, $10,000,000 for need for assistance. Subject to the availability of under this part shall submit to the Secretary an fiscal year 1999, and such sums as may be nec- appropriations to carry out this title, the Sec- application therefor at such time or times, in essary for each of the 4 succeeding fiscal retary may approve an application for a grant such manner, and containing such information years.’’; and under this title only if the Secretary determines as the Secretary may prescribe by regulation. (2) by striking subsections (c), (d) and (e). that— Such application shall set forth— ‘‘(A) the application meets the requirements of The CHAIRMAN. Are there any ‘‘(1) a program of activities for carrying out subsection (b); one or more of the purposes described in section amendments to title III. ‘‘(B) the applicant is eligible for assistance in 342 in such detail as will enable the Secretary to If not, the Clerk will designate title accordance with the part of this title under determine the degree to which such program will IV. which the assistance is sought; and accomplish such purpose or purposes; and ‘‘(C) the applicant’s performance goals are The text of title IV is as follows: ‘‘(2) such other policies, procedures, and as- sufficiently rigorous as to meet the purposes of TITLE IV—STUDENT ASSISTANCE surances as the Secretary may require by regu- this title and the performance objectives and in- lation. PART A—GRANTS TO STUDENTS dicators for this title established by the Sec- ‘‘(b) APPROVAL BASED ON LIKELIHOOD OF retary pursuant to the Government Performance SEC. 401. PELL GRANTS. PROGRESS.—The Secretary shall approve an ap- and Results Act. (a) EXTENSION OF AUTHORITY.—Section 401(a) plication only if the Secretary determines that ‘‘(2) PRELIMINARY APPLICATIONS.—In carrying (20 U.S.C. 1070a(a)) is amended— the application sets forth a program of activities out paragraph (1), the Secretary shall develop a (1) in paragraph (1)— which are likely to make substantial progress to- preliminary application for use by eligible insti- (A) by striking ‘‘September 30, 1998’’ and in- ward achieving the purposes of this part. tutions applying under part A prior to the sub- serting ‘‘September 30, 2004’’; and ‘‘SEC. 345. CROSS PROGRAM AND CROSS AGENCY mission of the principal application.’’. (B) by striking the second sentence; and COOPERATION. (b) CONTENTS OF APPLICATIONS.—Section (2) in paragraph (2), by striking ‘‘the dis- ‘‘The Minority Science and Engineering Im- 351(b) is amended— bursement system required by paragraph (1)’’ provement Programs shall cooperate and consult (1) in paragraph (5)(A), by inserting ‘‘and the and inserting ‘‘the disbursement of Federal Pell with other programs within the Department and Government Performance and Results Act’’ after Grants’’. within Federal, State, and private agencies ‘‘under this title’’; and (b) AMOUNT OF GRANT.—Section 401(b)(2)(A) which carry out programs to improve the quality (2) in paragraph (6), by inserting before the is amended to read as follows: of science, mathematics, and engineering edu- semicolon the following: ‘‘, except that for pur- ‘‘(2)(A) The amount of the Federal Pell Grant cation. poses of section 316, paragraphs (2) and (3) shall for a student eligible under this part shall be— ‘‘SEC. 346. ADMINISTRATIVE PROVISIONS. not apply’’. ‘‘(i) $4,500 for academic year 1999–2000, ‘‘(a) TECHNICAL STAFF.—The Secretary shall (c) WAIVERS.—Section 352(a) (20 U.S.C. ‘‘(ii) $4,700 for academic year 2000–2001, appoint, without regard to the provisions of title 1067(a)) is amended— ‘‘(iii) $4,900 for academic year 2001–2002, April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2551

‘‘(iv) $5,100 for academic year 2002–2003, and (2) MINIMUM GRANTS.—Section 402A(b)(3) is ‘‘(7) APPLICATION STATUS.—The Secretary ‘‘(v) $5,300 for academic year 2003–2004, amended to read as follows: shall inform each entity operating programs less an amount equal to the amount determined ‘‘(3) MINIMUM GRANTS.—Unless the institution under this chapter regarding the status of their to be the expected family contribution with re- or agency requests a smaller amount, individual application for continued funding at least 8 spect to that student for that year.’’. grants under this chapter shall be no less than— months prior to the expiration of the grant or (c) RELATION OF MAXIMUM GRANT TO TUITION ‘‘(A) $170,000 for programs authorized by sec- contract. The Secretary, in the case of an entity AND EXPENSES.—Section 401(b)(3) is amended— tions 402D and 402G; that is continuing to operate a successful pro- (1) by striking ‘‘$2,400’’ each place it appears ‘‘(B) $180,000 for programs authorized by sec- gram under this chapter, shall ensure that the and inserting ‘‘$3,000’’; and tions 402B and 402F; and start-up date for a new grant or contract for (2) by adding at the end the following new ‘‘(C) $190,000 for programs authorized by sec- such program immediately follows the termi- subparagraph: tions 402C and 402E.’’. nation of preceding grant or contract so that no ‘‘(C) An institution that charged only fees in (3) PROCEDURES FOR AWARDING GRANTS AND interruption of funding occurs for such success- lieu of tuition as of January 31, 1997, may in- CONTRACTS.—Subsection (c) of section 402A is ful reapplicants. The Secretary shall inform clude in its determination of tuition charged, amended to read as follows: each entity requesting assistance under this fees that would normally constitute tuition.’’. ‘‘(c) PROCEDURES FOR AWARDING GRANTS AND chapter for a new program regarding the status (d) DEPENDENT CARE AND DISABILITY RELAT- CONTRACTS.— of their application at least 8 months prior to ED EXPENSES.—Section 401(b)(3)(B) is amended ‘‘(1) APPLICATION REQUIREMENTS.—An eligible the proposed startup date of such program.’’. by striking ‘‘$750’’ and inserting ‘‘$1,500’’. entity that desires to receive a grant or contract (4) AUTHORIZATION OF APPROPRIATIONS.—Sec- (e) INSTITUTIONAL INELIGIBILITY BASED ON under this chapter shall submit an application tion 402A(f) is amended— DEFAULT RATES.—Section 401 is amended by to the Secretary in such manner and form, and (A) by striking ‘‘$650,000,000 for fiscal year adding at the end the following new subsection: containing such information and assurances, as 1993’’ and inserting ‘‘$800,000,000 for fiscal year ‘‘(j) INSTITUTIONAL INELIGIBILITY BASED ON the Secretary may reasonably require. 1999’’; and DEFAULT RATES.— ‘‘(2) PRIOR EXPERIENCE.—In making grants (B) by striking everything after the first sen- ‘‘(1) IN GENERAL.—No institution of higher under this chapter, the Secretary shall consider tence. education shall be an eligible institution for each applicant’s prior experience of service de- (b) TALENT SEARCH.—Section 402B(b) (20 purposes of this section if such institution of livery under the particular program for which U.S.C. 1070a–12(b)) is amended— higher education is ineligible to participate in a funds are sought. The level of consideration (1) by striking paragraph (4) and inserting the loan program under this title as a result of a given the factor of prior experience shall not following: final default rate determination made by the vary from the level of consideration given such ‘‘(4) guidance on and assistance in secondary Secretary under part B or D of this title, or factor during fiscal years 1994 through 1997, ex- school reentry, entry to general educational de- both, after the final publication of fiscal year cept that grants made under section 402H shall velopment (GED) programs, other alternative 1996 cohort default rates. not be given prior experience consideration. education programs for secondary school drop- ‘‘(2) SANCTIONS SUBJECT TO APPEAL OPPOR- ‘‘(3) ORDER OF AWARDS; PROGRAM FRAUD.—(A) outs, or postsecondary education;’’; and TUNITY.—No institution may be subject to the Except with respect to grants made under sec- (2) in paragraph (8), by striking ‘‘parents’’ terms of this subsection unless it has had the tions 402G and 402H and as provided in sub- and inserting ‘‘families’’. opportunity to appeal its default rate deter- paragraph (B), the Secretary shall award grants (c) UPWARD BOUND.—Section 402C (20 U.S.C. mination under regulations issued by the Sec- and contracts under this chapter in the order of 1070a–13) is amended— retary for the Federal Family Education Loan the scores received by the application for such (1) in subsection (b)— or Federal Direct Loan Program, as applicable. grant or contract in the peer review process re- (A) in paragraph (2), by striking ‘‘personal This subsection shall not apply to an institution quired under section 110 and adjusted for prior counseling’’ and inserting ‘‘counseling and that was not participating in the loan programs experience in accordance with paragraph (2) of workshops’’; authorized under part B or D of this title on the this subsection. (B) in paragraph (6)— date of enactment of the Higher Education ‘‘(B) The Secretary is not required to provide (i) by inserting ‘‘work-study and other’’ before Amendments of 1998, unless the institution sub- assistance to a program otherwise eligible for as- ‘‘activities’’; and sequently participates in the loan programs.’’. sistance under this chapter, if the Secretary has (ii) by inserting before the semicolon at the (f) CONFORMING AMENDMENTS.— determined that such program has involved the end the following: ‘‘, including careers requiring (1) Section 400(a)(1) (20 U.S.C. 1070(a)(1)) is fraudulent use of funds under this chapter. a postsecondary degree’’; amended by striking ‘‘basic educational oppor- ‘‘(4) PEER REVIEW PROCESS.—(A) The Sec- (C) in paragraph (9), by striking ‘‘and’’ at the tunity grants’’ and inserting ‘‘Federal Pell retary shall assure that, to the extent prac- end; Grants’’. ticable, members of groups underrepresented in (D) in paragraph (10), by striking ‘‘through (2) The heading of subpart 1 of part A of title higher education, including African Americans, (9)’’ and inserting ‘‘through (10)’’; and IV is amended to read as follows: Hispanics, Native Americans, Alaska Natives, (E) by redesignating paragraph (10) as para- ‘‘Subpart 1—Federal Pell Grants’’. Asian Americans, Native American Pacific Is- graph (11) and by inserting after paragraph (9) (3) Section 401 is amended— landers (including Native Hawaiians), are rep- the following new paragraph: (A) in the heading of the section, by striking resented as readers of applications submitted ‘‘(10) special services to enable veterans to ‘‘basic educational opportunity’’ and inserting under this chapter. The Secretary shall also as- make the transition to postsecondary education; ‘‘federal pell’’; sure that persons from urban and rural back- and’’; and (B) in subsection (a)(3), by striking ‘‘Basic grounds are represented as readers. (2) in subsection (c), by inserting ‘‘, other grants’’ and inserting ‘‘Grants’’; ‘‘(B) The Secretary shall ensure that each ap- than a project a majority of the participants in (C) by striking ‘‘basic grant’’ each place it ap- plication submitted under this chapter is read which are veterans,’’ after ‘‘this chapter’’. pears and inserting ‘‘Federal Pell Grant’’; and by at least 3 readers who are not employees of (d) STUDENT SUPPORT SERVICES.—Section (D) by striking ‘‘basic grants’’ each place it the Federal Government (other than as readers 402D(c)(6) (20 U.S.C. 1070a–14(c)(6)) is amended appears and inserting ‘‘Federal Pell Grants’’. of applications). by inserting before the period at the end the fol- (4) Section 401(f)(3) is amended by striking ‘‘(5) NUMBER OF APPLICATIONS FOR GRANTS lowing: ‘‘and minimize the student’s loan bur- ‘‘Education and Labor’’ and inserting ‘‘Edu- AND CONTRACTS.—The Secretary shall not limit den’’. cation and the Workforce’’. the number of applications submitted by an en- (e) POSTBACCALAUREATE ACHIEVEMENT PRO- (5) Section 452(c) (20 U.S.C. 1087b(c)) is tity under any program authorized under this GRAM.—Section 402E (20 U.S.C. 1070a–15) is amended by striking ‘‘basic grants’’ and insert- chapter if the additional applications describe amended— ing ‘‘Federal Pell Grants’’. programs serving different populations or cam- (1) in subsection (c)(3), by inserting ‘‘or ac- (6) Subsections (j)(2) and (k)(3) of section 455 puses. cepted in a graduate program’’ after ‘‘degree (20 U.S.C. 1087e) are each amended by striking ‘‘(6) COORDINATION WITH OTHER PROGRAMS program’’; and ‘‘basic grants’’ and inserting ‘‘Federal Pell FOR DISADVANTAGED STUDENTS.—The Secretary (2) in subsection (e)(1), by striking ‘‘$2,400’’ Grants’’. shall encourage coordination of programs as- and inserting ‘‘$3,200’’. SEC. 402. FEDERAL TRIO PROGRAMS. sisted under this chapter with other programs (f) STAFF DEVELOPMENT ACTIVITIES.—Section (a) PROGRAM AUTHORITY; AUTHORIZATION OF for disadvantaged students operated by the 402G(b) (20 U.S.C. 1070a–17(b)) is amended by APPROPRIATIONS.— sponsoring institution or agency, regardless of inserting after paragraph (3) the following new (1) DURATION OF GRANTS.—Section 402A(b)(2) the funding source of such programs. The Sec- paragraph: (20 U.S.C. 1070a–11(b)(2)) is amended— retary shall not limit an entity’s eligibility to re- ‘‘(4) The use of appropriate educational tech- (A) by striking subparagraph (A); ceive funds under this chapter because such en- nology in the operation of projects assisted (B) by striking the period at the end of sub- tity sponsors a program similar to the program under this chapter.’’. paragraph (B) and inserting ‘‘; and’’; to be assisted under this chapter, regardless of (g) EVALUATION FOR PROJECT IMPROVE- (C) by redesignating subparagraph (B) as sub- the funding source of such program. The Sec- MENT.—Section 402H(b) (20 U.S.C. 1070a–18(b)) paragraph (A); and retary shall permit the Director of a program re- is amended by adding at the end the following (D) by adding at the end the following new ceiving funds under this chapter to administer new sentence: ‘‘Such evaluations shall also in- subparagraph: one or more additional programs for disadvan- vestigate the effectiveness of alternative and in- ‘‘(B) grants under section 402H shall be taged students operated by the sponsoring insti- novative methods within Federal TRIO pro- awarded for a period determined by the Sec- tution or agency, regardless of the funding grams of increasing access to, and retention of, retary.’’. sources of such programs. students in postsecondary education.’’. H2552 CONGRESSIONAL RECORD — HOUSE April 29, 1998 SEC. 403. NATIONAL EARLY INTERVENTION AND ‘‘(3) provide useful, early information to these this chapter shall submit an application to the PARTNERSHIP PROGRAM. students and their parents on the need for, op- Secretary, in such form and containing such in- Section 404G (20 U.S.C. 1070a–27) is amended tions related to, and financing (including the formation, as the Secretary may require. by striking ‘‘1993’’ and inserting ‘‘1999’’. availability of financial assistance) of a college ‘‘(b) APPLICATION CONTENTS.—Each applica- SEC. 404. REPEALS. education; and tion shall include— (a) REPEALS OF SUBPART 2 PROVISIONS.—The ‘‘(4) help ensure that these students have ac- ‘‘(1) the name of each partner and a descrip- following provisions of subpart 2 of part A of cess to rigorous core courses, such as algebra tion of its responsibilities, including the des- title IV are repealed: and geometry, that prepare them for college. ignation of either an institution of higher edu- (1) Chapter 3 (20 U.S.C. 1070a–31 et seq.). ‘‘SEC. 407B. GRANTS. cation or a local educational agency as the fis- (2) Chapter 4 (20 U.S.C. 1070a–41 et seq.). ‘‘(a) GRANTS AUTHORIZED.—From funds ap- cal agent for the partnership; (3) Chapter 5 (20 U.S.C. 1070a–51 et seq.). propriated under section 407H(a), the Secretary ‘‘(2) a description of the need for the project, (4) Chapter 6 (20 U.S.C. 1070a–61 et seq.). shall make grants to college-school-community including a description of how the project will (5) Chapter 7 (20 U.S.C. 1070a–71 et seq.). partnerships for activities under section 407D. build on existing services and activities, if any; (6) Chapter 8 (20 U.S.C. 1070a–81 et seq.). ‘‘(b) ELIGIBLE PARTNERSHIP.—For purposes of ‘‘(3) a listing of the human, financial (other (b) SUBPART 8.—Subpart 8 of part A of title IV this chapter, an eligible partnership shall in- than funds under this chapter), and other re- (20 U.S.C. 1070f) is repealed. clude— sources that each member of the partnership will (c) CONFORMING AMENDMENT.—Section 400(b) ‘‘(1) one or more local educational agencies contribute to the partnership, and a description (20 U.S.C. 1070(b)) is amended by striking ‘‘sub- acting on behalf of— of the efforts each member of the partnership parts 1 through 8’’ and inserting ‘‘subparts 1 ‘‘(A) one or more participating schools; and will make in seeking additional resources; through 6’’. ‘‘(B) the public secondary schools that stu- ‘‘(4) a description of how the project will oper- SEC. 405. ESTABLISHMENT OF NEW PROGRAMS. dents from these schools would normally attend; ate, including how grant funds will be used to Subpart 2 of part A of title IV is amended by ‘‘(2) one or more degree granting institutions meet the purpose of this chapter; inserting after chapter 2 (20 U.S.C. 1070a–81) the of higher education; and ‘‘(5) a description of how services will be co- following new chapters: ‘‘(3) at least two community organizations or ordinated with, and will complement and en- entities, such as businesses, professional asso- ‘‘CHAPTER 3—HIGH HOPES FOR COLLEGE hance, services received by participating schools ciations, community-based organizations, or ‘‘Subchapter A—21st Century Scholar and students under other related Federal and other public or private agencies or organiza- Certificates non-Federal programs, including programs tions. under title I, part A of title VII, and part 1 of ‘‘SEC. 406A. 21ST CENTURY SCHOLAR CERTIFI- ‘‘(c) DEFINITIONS.—For the purpose of this title X of the Elementary and Secondary Edu- CATES. chapter— cation Act of 1965, the School-to-Work Opportu- ‘‘(a) FINDINGS.—The Congress makes the fol- ‘‘(1) ‘participating school’ means a public nities Act of 1994, section 402 of this Act, and lowing findings: school in which— the Individuals with Disabilities Education Act; ‘‘(1) Among low-income students who, despite ‘‘(A) there is a 7th grade; high test scores, are not planning on attending ‘‘(B) one or more cohorts of students receive ‘‘(6) a description of how the partnership will college, nearly 60 percent cite an inability to af- services under this chapter; and support and continue the services under this ford school as the reason. ‘‘(C) at least 50 percent of the students en- chapter after the grant has expired; ‘‘(2) About 80 percent of our 12th graders who rolled are eligible for free or reduced-price ‘‘(7) an assurance from each local educational are interested in continuing their education lunch; and agency using funds under this chapter that— after high school go on to college if their parents ‘‘(2) ‘cohort of students’ means— ‘‘(A) at least 50 percent of the students en- read materials about financial aid, compared to ‘‘(A) an entire grade level of students in a rolled in each participating school are eligible only 55 percent of such students if their parents participating school; or for free or reduced-price lunch; do not read this material. ‘‘(B) if the partnership determines that it ‘‘(B) its aggregate expenditures per student ‘‘(3) In 1996, the American Council on Edu- would promote the effectiveness of a project, an for activities described in this chapter will not cation found that the public overestimated the entire grade level of students, beginning not be reduced from the level of such expenditures tuition of public 2-year colleges by about 3 times later than the 7th grade, who reside in public in the year prior to the grant; and the actual average tuition, of public 4-year col- housing as defined in section 3(b)(1) of the ‘‘(C) someone at each participating school will leges by over twice the actual average tuition, United States Housing Act of 1937. be designated as the primary point of contact and of private 4-year universities by almost one- ‘‘(d) DURATION.—Each grant awarded under for the partnership; third more than the actual average tuition. this chapter shall be for a 6-year period. ‘‘(8) an assurance that participating students ‘‘(4) There is a need for, and a significant ‘‘(e) COST SHARING.— will have access to rigorous core academic benefit from, providing students, and through ‘‘(1) Federal funds shall provide no more than courses that reflect challenging State or local them their parents, with information about the 80 percent of the cost of the project in the first academic standards; and variety of Federal student financial assistance year, 70 percent of the cost in the second year, ‘‘(9) an assurance that members will provide programs, such as Pell grants, Federal work- 60 percent of the cost in the third year, 50 per- the performance information required by the study and loans, and the AmeriCorps Education cent of the cost in the fourth year, 40 percent of Secretary, which would be used to base continu- Awards that make college more affordable than the cost in the fifth year, and 30 percent of the ation of the grant. ever before. cost in the sixth year. ‘‘(c) PREFERENCES.—In reviewing applications ‘‘(b) AUTHORITY.— ‘‘(2) The non-Federal share of grants awarded ‘‘(1) The Secretary, using funds appropriated under this chapter, the Secretary shall give under this chapter may— preference to projects that— under section 407H(a) of this Act— ‘‘(A) be in cash or in kind, fairly evaluated, ‘‘(1) will serve participating schools in which ‘‘(A) shall ensure that certificates, to be including services, supplies, or equipment; and at least 75 percent of the students enrolled are known as 21st Century Scholar Certificates, are ‘‘(B) include the non-Federal share of work- eligible for free or reduced-price lunch; provided to all students participating in projects study grants under part C of title IV of this Act under chapter 2; and awarded to students who serve as tutors or men- ‘‘(2) provide a commitment from non-Federal ‘‘(B) may, as practicable, ensure that such tors in projects under this chapter. sources to pay all or part of the cost of college, certificates are provided to all students in ‘‘(3) The Secretary may waive the cost sharing through tuition assistance or guarantees (not grades 6 through 12 who attend schools at requirement described in paragraph (1) for any already available), such as ‘last-dollar grants’, which at least 50 percent of the students en- eligible partnership that demonstrates to the for participating students; and rolled are eligible for free or reduced-price satisfaction of the Secretary an extraordinary ‘‘(3) hold participating students responsible lunch. hardship that prevents compliance with that re- for school or community service and high aca- ‘‘(2) A 21st Century Scholar Certificate shall quirement. demic performance. be personalized for each student and indicate ‘‘(f) EQUITABLE GEOGRAPHIC DISTRIBUTION.— ‘‘SEC. 407D. PROGRAM REQUIREMENTS; USES OF the amount of Federal financial aid for college To the extent possible, the Secretary shall FUNDS. for which a student may be eligible. award grants under this chapter in a manner ‘‘(a) PROGRAM REQUIREMENTS.—Projects ‘‘Subchapter B—High Hopes Partnerships that achieves an equitable geographic distribu- under this chapter shall— ‘‘SEC. 407A. PURPOSE. tion of those grants. ‘‘(1) have a program coordinator who is either ‘‘It is the purpose of this chapter to encourage ‘‘(g) PRIORITY AWARDS UNDER CHAPTER 2.— full-time or whose primary responsibility is the and prepare students in low-income commu- Before making grants under this chapter for fis- project under this chapter; nities, beginning not later than the 7th grade, to cal year 1999, the Secretary shall, as appro- ‘‘(2) provide services to at least one cohort of prepare for, enter, and successfully complete priate, make awards to recipients eligible for students, beginning not later than the 7th college by assisting college-school-community continuation awards under chapter 2 of subpart grade; partnerships to— 2 of this title as it was in effect prior to the en- ‘‘(3) ensure that the services authorized under ‘‘(1) provide in-school and on-campus early actment of the Higher Education Amendments this chapter are provided through the 12th college awareness activities to these students of 1998. grade to students in the cohort, including stu- and their parents; ‘‘SEC. 407C. GRANT APPLICATION; PREFERENCES. dents who attend another participating school ‘‘(2) ensure ongoing adult guidance and other ‘‘(a) APPLICATION REQUIRED.—An eligible or a secondary school identified under section support to these students; partnership desiring to receive a grant under 407B(b)(1)(B); April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2553 ‘‘(4) include activities and information that and additional staff to review applications, to payment of a student loan made under part D of foster and improve parent involvement in pro- increase the level of oversight monitoring, to this title. moting postsecondary education for their chil- support impact studies, program assessments ‘‘(b) SELECTION BASED ON PROMISE OF ACA- dren, including the provision of useful early in- and reviews, and to provide technical assistance DEMIC ACHIEVEMENT.—Each student awarded a formation on the advantages of a college edu- to potential applicants and current grantees. scholarship under this chapter must dem- cation, academic admissions requirements, and ‘‘CHAPTER 4—FRANK TEJEDA onstrate outstanding academic achievement and show promise of continued academic achieve- the need to take core courses, admissions and SCHOLARSHIP PROGRAM achievement tests, application procedures, col- ment, as certified by the student’s academic in- ‘‘SEC. 408A. STATEMENT OF PURPOSE. lege costs and options, and the availability of stitution. student financial aid; ‘‘It is the purpose of this chapter to establish ‘‘(c) EXCEPTION TO REPAYMENT OBLIGATION.— ‘‘(5) include academic counseling, career a Frank Tejeda Scholarship Program to recruit ‘‘(1) DEFERRAL DURING CERTAIN PERIODS.—A awareness, and tutoring or mentoring from and train teachers who are proficient in both recipient shall not be considered in violation of trained personnel, as well as other student sup- Spanish and English and who show promise of the agreement entered into pursuant to sub- port services that enable students to succeed academic achievement. section (a)(4)(C) during any period in which the academically and apply for, enter, and complete ‘‘SEC. 408B. SCHOLARSHIPS AUTHORIZED. recipient— ‘‘(A) is pursuing a full-time course of study college; ‘‘(a) PROGRAM AUTHORITY.—The Secretary is related to the field of teaching at an eligible in- ‘‘(6) include training in promoting early col- authorized, in accordance with the provisions of this chapter, to award scholarships to individ- stitution; lege awareness for classroom teachers, guidance ‘‘(B) is serving, not in excess of 3 years, as a uals consistent with the purposes of this chap- counselors, and staff of the schools involved in member of the armed services of the United ter. the project; faculty and program personnel in States; participating institutions of higher education; ‘‘(b) TEJEDA SCHOLARS.—Individuals awarded ‘‘(C) is temporarily totally disabled for a pe- and participating mentors and tutors; scholarships under this chapter shall be known riod of time not to exceed 3 years as established ‘‘(7) include activities on college campuses and as ‘Tejeda Scholars’. by sworn affidavit of a qualified physician; enrichment activities associated with post- ‘‘SEC. 408C. ALLOCATION AMONG STATES. ‘‘(D) is unable to secure employment for a pe- secondary education; and ‘‘(a) ALLOCATION FORMULA.—From the sums riod not to exceed 12 months by reason of hav- ‘‘(8) include arrangements that ensure that all appropriated pursuant to the authority of sec- ing to care for a spouse, child, parent, or imme- participating students have access to rigorous tion 408H for any fiscal year, the Secretary shall diate family member who is disabled; core courses that reflect challenging State or allocate to each State an amount equal to $5,000 ‘‘(E) is seeking and unable to find full-time local academic standards and that prepare them multiplied by the number of scholarships deter- employment for a single period not to exceed 12 for college. mined by the Secretary to be available to such months; ‘‘(b) USE OF FUNDS.—In addition to the activi- State in accordance with subsection (b). ‘‘(F) is seeking and unable to find full-time ties described in subsection (a), a recipient of ‘‘(b) NUMBER OF SCHOLARSHIPS AVAILABLE.— employment as a teacher in a public or private funds under this chapter may use them— The number of scholarships to be made available nonprofit preschool, elementary or secondary ‘‘(1) where necessary and appropriate to en- in a State for any fiscal year shall bear the same school, or education program for a single period sure active participation, to pay stipends to par- ratio to the number of scholarships made avail- not to exceed 27 months; or ticipating students and their mentors; able to all States as the State’s population ages ‘‘(G) satisfies the provisions of additional re- ‘‘(2) where necessary and appropriate to en- 5 through 17 bears to the population ages 5 payment exceptions that may be prescribed by sure active participation, to pay transportation through 17 in all the States, except that not less the Secretary in regulations issued pursuant to costs for participants to attend project-spon- than 10 scholarships shall be made available to this subpart. ‘‘(2) FORGIVENESS IF PERMANENTLY TOTALLY sored activities; any State. DISABLED.—A recipient shall be excused from re- ‘‘(3) to provide out-of-school and summer ac- ‘‘(c) USE OF CENSUS DATA.—For the purpose payment of any scholarship assistance received tivities related to the project; of this section, the population ages 5 through 17 under this chapter if the recipient becomes per- ‘‘(4) for project evaluation; and in a State and in all the States shall be deter- manently totally disabled as established by ‘‘(5) to recognize the responsibility and mined by the most recently available data, satis- sworn affidavit of a qualified physician. achievement of participating students through factory to the Secretary, from the Bureau of the ceremonies, awards, and other means. Census. The Bureau of the Census shall produce ‘‘SEC. 408E. SELECTION OF SCHOLARS. ‘‘(a) ESTABLISHMENT OF CRITERIA.—The Sec- ‘‘SEC. 407E. SERVICES FOR STUDENTS ATTEND- and publish intercensal data for Puerto Rico retary shall establish criteria for the selection of ING PRIVATE SCHOOLS. and the other territories. scholars under this chapter that meet the re- ‘‘A local educational agency that participates ‘‘SEC. 408D. ELIGIBILITY OF SCHOLARS. in an eligible partnership shall provide services quirements of section 408D. ‘‘(a) HIGH SCHOOL GRADUATION OR EQUIVA- IMING OF SELECTION.—The selection supported with Federal funds under this chap- ‘‘(b) T LENT AND ADMISSION TO INSTITUTION RE- process shall be completed, and the awards ter on an equitable basis, consistent with section QUIRED.—Each student awarded a scholarship made, no later than May 1 of the academic year 14503 of Elementary and Secondary Education under this chapter shall— preceding the academic year for which the Act of 1965, to students in private schools that— ‘‘(1) be— award will be used. ‘‘(1) have a 7th grade; ‘‘(A) a low-income individual, as that term is ‘‘(2) have students at least 50 percent of whom ‘‘SEC. 408F. STIPENDS AND SCHOLARSHIP CONDI- defined in section 402A(g)(2) of this title; or TIONS. are eligible for free or reduced-price lunch; and ‘‘(B) an individual who is eligible for a Pell ‘‘(a) AMOUNT OF AWARD.—Each student ‘‘(3) are located in the normal attendance Grant under subpart 1 of this part; awarded a scholarship under this chapter shall area of a participating school. ‘‘(2) be a citizen of the United States; receive a stipend of $5,000 for the academic year ‘‘SEC. 407F. EVALUATION. ‘‘(3) be a resident of the State in which he or of study for which the scholarship is awarded, ‘‘In order to improve the operation of the pro- she applies; except that in no case shall the total amount of gram assisted under this chapter, the Secretary ‘‘(4) be enrolled or accepted for enrollment on financial aid awarded to such student exceed shall, with funds appropriated under section a full- or part-time basis, at a graduate or un- such student’s total cost-of-attendance. 407H(a), make grants to, and enter into con- dergraduate level, in an institution of higher ‘‘(b) USE OF AWARD.—The State educational tracts and cooperative agreements with, institu- education that has an accredited teacher prepa- agency shall establish procedures to assure that tions of higher education and other public and ration program; a scholar awarded a scholarship under this private institutions and organizations to evalu- ‘‘(5) have demonstrated proficiency in the chapter pursues a course of study at an institu- ate the effectiveness of the program assisted English and Spanish languages, as certified by tion of higher education. under this chapter and, as appropriate, dissemi- the applicant’s academic institution; and ‘‘SEC. 408G. CONSTRUCTION OF NEEDS PROVI- nate such results. ‘‘(6) have agreed, upon graduation from such SIONS. ‘‘SEC. 407G. PEER REVIEW. program— ‘‘Notwithstanding section 471, nothing in this ‘‘The Secretary shall use a peer review process ‘‘(A) to serve no less than one year for each chapter, or any other Act, shall be construed to to review applications under this chapter and year of scholarship assistance, but no fewer permit the receipt of a scholarship under this make recommendations for funding to the Sec- than two years of service in total, as a teacher chapter to be counted for any needs test in con- retary. in a public elementary or secondary school in nection with the awarding of any grant or the ‘‘SEC. 407H. AUTHORIZATION OF APPROPRIA- which there is a demonstrated need for Spanish- making of any loan under this Act or any other TIONS. speaking teachers and professionals, as deter- provision of Federal law relating to educational ‘‘(a) AUTHORIZATION OF APPROPRIATION.— mined by the Secretary; assistance. There are authorized to be appropriated ‘‘(B) to complete such service within 6 years of ‘‘SEC. 408H. AUTHORIZATION OF APPROPRIA- $140,000,000 for fiscal year 1999 and such sums graduation; and TIONS. as may be necessary for each of the 5 succeeding ‘‘(C) that if the student is unable to complete ‘‘There are authorized to be appropriated for fiscal years to carry out this chapter. such service, the student will, except as pro- this chapter $5,000,000 for fiscal year 1998 and ‘‘(b) RESERVATION FOR TECHNICAL ASSISTANCE vided in subsection (c), repay the Secretary the such sums as may be necessary for each of the AND PEER REVIEW.—From the amount appro- total amount, or a pro rata amount of the schol- 4 succeeding fiscal years. priated under subsection (a) for any fiscal year, arship received under this chapter in proportion ‘‘CHAPTER 5—CAMPUS-BASED CHILD CARE the Secretary may reserve up 0.5 percent of that to the amount of service completed, plus interest ‘‘SEC. 410A. CAMPUS-BASED CHILD CARE. amount to obtain additional qualified readers and collection costs in the same manner as re- ‘‘(a) PROGRAM AUTHORIZED.— H2554 CONGRESSIONAL RECORD — HOUSE April 29, 1998

‘‘(1) AUTHORITY.—The Secretary may award within 3 years of the date the institution first ‘‘(B) USE OF CARRIED-BACK FUNDS.—An eligi- grants to institutions of higher education to as- receives assistance under this section. ble institution may make grants to students sist the institutions in providing campus-based ‘‘(c) REPORTING REQUIREMENTS; CONTINUING after the end of the academic year, but prior to child care services to low-income students. ELIGIBILITY.— the beginning of the succeeding fiscal year, from ‘‘(2) AMOUNT OF GRANTS.— ‘‘(1) REPORTING REQUIREMENTS.— such succeeding fiscal year’s appropriations.’’. ‘‘(A) IN GENERAL.—The amount of a grant ‘‘(A) REPORTS.—Each institution of higher SEC. 407. GRANTS TO STATES FOR STATE STU- awarded to an institution of higher education education receiving a grant under this section DENT INCENTIVES. under this section for a fiscal year shall not ex- shall report to the Secretary 18 months and 36 (a) AUTHORIZATION OF APPROPRIATIONS.—Sec- ceed 1 percent of the total amount of all Federal months after receiving the first grant payment tion 415A(b) of the Higher Education Act of 1965 Pell Grant funds awarded to students enrolled under this section. (20 U.S.C. 1070c(b)) is amended— at the institution of higher education for the ‘‘(B) CONTENTS.—The report shall include— (1) in paragraph (1), by striking ‘‘1993’’ and preceding fiscal year. ‘‘(i) data on the population served under this inserting ‘‘1999’’; ‘‘(B) MINIMUM.—A grant under this section section; (2) by redesignating paragraph (2) as para- shall be awarded in an amount that is not less ‘‘(ii) information on campus and community graph (3); and than $10,000. resources and funding used to help low-income (3) by inserting after paragraph (1) the follow- ‘‘(3) DURATION AND PAYMENTS.— students access child care services; ing: ‘‘(2) RESERVATION.—For any fiscal year for ‘‘(A) DURATION.—The Secretary shall award a ‘‘(iii) information on progress made toward grant under this section for a period of 3 years. accreditation of any child care facility; and which the amount appropriated under para- ‘‘(iv) information on the impact of the grant graph (1) exceeds $25,000,000, the excess shall be ‘‘(B) PAYMENTS.—Subject to paragraph (2), the Secretary shall make annual grant pay- on the quality, availability, and affordability of available to carry out section 415E.’’. (b) SPECIAL LEVERAGING EDUCATIONAL ASSIST- ments under this section. campus-based child care services. ‘‘(2) CONTINUING ELIGIBILITY.—The Secretary ANCE PARTNERSHIP PROGRAM.—Subpart 4 of ‘‘(4) ELIGIBLE INSTITUTIONS.—An institution part A of title IV of the Higher Education Act of higher education shall be eligible to receive a shall make the third annual grant payment of 1965 (20 U.S.C. 1070c et seq.) is amended— grant under this section for a fiscal year if the under this section to an institution of higher education only if the Secretary determines, on (1) by redesignating section 415E as section total amount of all Federal Pell Grant funds 415F; and awarded to students enrolled at the institution the basis of the 18-month report submitted under paragraph (1), that the institution is making a (2) by inserting after section 415D the follow- of higher education for the preceding fiscal year ing: equals or exceeds $350,000. good faith effort to ensure that low-income stu- dents at the institution have access to afford- ‘‘SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ‘‘(5) USE OF FUNDS.—Grant funds under this able, quality child care services. ASSISTANCE PARTNERSHIP PRO- section shall be used by an institution of higher GRAM. ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— education to support or establish a campus- ‘‘(a) IN GENERAL.—From amounts reserved There are authorized to be appropriated to carry based child care program serving the needs of under section 415A(b)(2) for each fiscal year, the out this section $30,000,000 for fiscal year 1999 low-income students enrolled at the institution Secretary shall— and such sums as may be necessary for each of of higher education. ‘‘(1) make allotments among States in the the 4 succeeding fiscal years.’’. ‘‘(6) DEFINITION OF LOW-INCOME STUDENT.— same manner as the Secretary makes allotments For the purpose of this section, the term ‘low-in- SEC. 406. FEDERAL SUPPLEMENTAL EDU- among States under section 415B; and come student’ means a student who is eligible to CATIONAL OPPORTUNITY GRANTS. ‘‘(2) award grants to States, from allotments (a) EXTENSION OF AUTHORITY.—Section receive a Federal Pell Grant for the fiscal year under paragraph (1), to enable the States to pay 413A(b)(1) (20 U.S.C. 1070b(b)(1)) is amended by for which the determination is made. the Federal share of the cost of the authorized striking ‘‘1993’’ and inserting ‘‘1999’’. ‘‘(b) APPLICATIONS.—An institution of higher activities described in subsection (c). (b) USE OF FUNDS FOR LESS-THAN-FULL-TIME education desiring a grant under this section ‘‘(b) AUTHORIZED ACTIVITIES.—Each State re- STUDENTS.—Subsection (d) of section 413C (20 shall submit an application to the Secretary at ceiving a grant under this section may use the U.S.C. 1070b–2(d)) is amended by striking ‘‘and such time, in such manner, and accompanied by grant funds for— if the total financial need’’ and all that follows such information as the Secretary may require. ‘‘(1) increasing the dollar amount of grants and inserting the following: ‘‘, then grant funds Each application shall— awarded under section 415B to eligible students shall be made available to such independent and ‘‘(1) demonstrate that the institution is an eli- who demonstrate financial need; less-than-full-time students.’’. ‘‘(2) carrying out transition programs from gible institution described in subsection (a)(4); (c) ALLOCATION OF FUNDS.—Section 413D (20 ‘‘(2) specify the amount of funds requested; secondary school to postsecondary education for U.S.C. 1070b-3) is amended— ‘‘(3) demonstrate the need of low-income stu- eligible students who demonstrate financial (1) by striking subsection (b); and dents at the institution for campus-based child need; (2) in subsection (c)(1), by striking ‘‘three- ‘‘(3) carrying out a financial aid program for care services by including in the application quarters of the remainder’’ and inserting ‘‘the eligible students who demonstrate financial student demographics and other relevant data; remainder’’; need and wish to enter teaching or computer-re- ‘‘(4) identify the resources the institution will (3) in subsection (c)(2)(A)(i), by striking ‘‘sub- lated careers, or other fields of study determined draw upon to support the child care program section (d)’’ and inserting ‘‘subsection (c)’’; by the State to be critical to the State’s work- and the participation of low-income students in (4) by redesignating subsections (c), (d), (e), force needs; the program, such as accessing social services and (f) as subsections (b), (c), (d), and (e), re- ‘‘(4) carrying out early intervention programs, funding, using student activity fees to help pay spectively; and mentoring programs, and career education pro- the costs of child care, using resources obtained (5) by inserting after subsection (e) (as so re- grams for eligible students who demonstrate fi- by meeting the needs of parents who are not designated) the following new subsection: nancial need; and low-income students, accessing foundation, cor- ‘‘(f) CARRY-OVER/CARRY-BACK AUTHORITY.— ‘‘(5) awarding merit or academic scholarships porate, or other institutional support, and dem- ‘‘(1) CARRY-OVER AUTHORITY.— to eligible students who demonstrate financial onstrating that the use of the resources will not ‘‘(A) CARRY-OVER UP TO 10 PERCENT.—Of the need. result in increases in student tuition; sums granted to an eligible institution under ‘‘(c) MAINTENANCE OF EFFORT REQUIRE- ‘‘(5) contain an assurance that the institution this subpart for any fiscal year, 10 percent may, MENT.—Each State receiving a grant under this will meet the child care needs of low-income stu- at the discretion of the institution, remain avail- section for a fiscal year shall provide the Sec- dents through the provision of services, or able for expenditure during the succeeding fiscal retary an assurance that the aggregate amount through a contract for the provision of services; year to carry out the program under this sub- expended per student or the aggregate expendi- ‘‘(6) provide a timeline, covering the period part. tures by the State, from funds derived from non- from receipt of the grant through the provision ‘‘(B) REALLOCATION OF EXCESS.—Any of the Federal sources, for the authorized activities de- of the child care services, delineating the spe- sums so granted to an institution for a fiscal scribed in subsection (b) for the preceding fiscal cific steps the institution will take to achieve year which are not needed by that institution to year were not less than the amount expended the goal of providing low-income students with operate programs under this subpart during that per student or the aggregate expenditures by the child care services; fiscal year, and which it does not wish to use State for the activities for the second preceding ‘‘(7) specify any measures the institution will during the next fiscal year as authorized in the fiscal year. The Secretary may waive this sub- take to assist low-income students with child preceding sentence, shall remain available to the section for good cause, as determined by the care during the period before the institution Secretary for making grants under section 413B Secretary. provides child care services; to other institutions in the same State until the ‘‘(d) FEDERAL SHARE.—The Federal share of ‘‘(8) include a plan for identifying resources close of the second fiscal year next succeeding the cost of the authorized activities described in needed for the child care services, including the fiscal year for which such funds were appro- subsection (b) for any fiscal year shall be 25 per- space in which to provide child care services, priated. cent.’’. and technical assistance if necessary; ‘‘(2) CARRY-BACK AUTHORITY.— (c) TECHNICAL AND CONFORMING AMEND- ‘‘(9) contain an assurance that any child care ‘‘(A) CARRY-BACK UP TO 10 PERCENT.—Up to MENTS.— facility assisted under this section will meet the 10 percent of the sums the Secretary determines (1) PURPOSE.—Subsection (a) of section 415A applicable State or local government licensing, an eligible institution may receive from funds of the Higher Education Act of 1965 (20 U.S.C. certification, approval, or registration require- which have been appropriated for a fiscal year 1070c(a)) is amended to read as follows: ments; and may be used by the institution for expenditure ‘‘(a) PURPOSE OF SUBPART.—It is the purpose ‘‘(10) contain a plan for any child care facility during the fiscal year preceding the fiscal year of this subpart to make incentive grants avail- assisted under this section to become accredited for which the sums were appropriated. able to States to assist States in— April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2555 ‘‘(1) providing grants to— enactment of this section, deposit all funds, se- ferred pursuant to this subsection no later than ‘‘(A) eligible students attending institutions of curities, and other liquid assets contained in the the start of the fourth year after the establish- higher education or participating in programs of reserve fund established pursuant to section 422 ment of the Agency Operating Fund, and shall study abroad that are approved for credit by in- of this part into a Federal Student Loan Reserve repay all amounts transferred no later than 5 stitutions of higher education at which such Fund (in this section and section 422B referred years from the date of the establishment of the students are enrolled; and to as the ‘Federal Fund’) which shall be an ac- Agency Operating Fund. Each guaranty agency ‘‘(B) eligible students for campus-based com- count of a type selected by the agency, with the shall provide to the Secretary, on an annual munity service work-study; and approval of the Secretary. basis, a financial analysis demonstrating its ‘‘(2) carrying out the activities described in ‘‘(b) INVESTMENT OF FUNDS.—Funds main- ability to repay all outstanding amounts while section 415F.’’. tained in the Federal Fund shall be invested in any transferred amounts are owned to the Fed- (2) ALLOTMENT.—Section 415B(a)(1) of the obligations issued or guaranteed by the United eral Fund. Higher Education Act of 1965 (20 U.S.C. 1070c– States or a State, or in other similarly low-risk ‘‘(3) SPECIAL RULE.—In applying the minimum 1(a)(1)) is amended by inserting ‘‘and not re- securities selected by the guaranty agency. reserve level required by section 428(c)(9)(A), the served under section 415A(b)(2)’’ after ‘‘(c) ADDITIONAL DEPOSITS.—After the estab- Secretary shall include all amounts owed to the ‘‘415A(b)(1)’’. lishment of the Federal Fund, a guaranty agen- Federal Fund by the agency due to transfers al- SEC. 408. SPECIAL PROGRAMS FOR STUDENTS cy shall deposit into the Federal Fund— lowed under paragraph (1) in the calculation.’’. WHOSE FAMILIES ARE ENGAGED IN ‘‘(1) all amounts received from the Secretary (b) AGENCY OPERATING FUND ESTABLISHED.— MIGRANT AND SEASONAL FARM- as payment of reinsurance on loans pursuant to WORK. Part B of title IV is further amended by insert- section 428(c)(1); (a) COORDINATION.—Section 418A(d) (20 ing after section 422A (as added by subsection ‘‘(2) from amounts collected on behalf of the U.S.C. 1070d–2(d)) is amended by inserting after (a)) the following new section: obligation of a defaulted borrower, a percentage ‘‘contains assurances’’ the following: ‘‘that the ‘‘SEC. 422B. AGENCY OPERATING FUND. amount equal to the complement of the reinsur- grant recipient will coordinate its project, to the ‘‘(a) ESTABLISHMENT.—Each guaranty agency ance percentage in effect when payment under extent feasible, with other local, State, and Fed- shall, not later than 60 days after the date of the guaranty agreement was made with respect eral programs to maximize the resources avail- enactment of this section, establish a fund des- to the defaulted loan pursuant to sections able for migrant students, and’’. ignated as the Agency Operating Fund (herein- 428(c)(6)(A) and 428F(a)(1)(B); and (b) EXTENSION OF AUTHORITY.—Section after referred to as the ‘Operating Fund’). ‘‘(3) insurance premiums collected from bor- 418A(g) is amended by striking ‘‘1993’’ each ‘‘(b) INVESTMENT OF FUNDS.—Funds deposited rowers pursuant to sections 428(b)(1)(H) and place it appears and inserting ‘‘1999’’. into the Operating Fund shall be invested at the 428H(h). (c) DATA COLLECTION.—Section 418A is discretion of the guaranty agency in accordance ‘‘(d) USES OF FUNDS.—Subject to subsection amended by adding at the end the following with prudent investor standards. (f), the Federal Fund may only be used by a new subsection: ‘‘(c) ADDITIONAL DEPOSITS.—After the estab- guaranty agency— ‘‘(h) DATA COLLECTION.—The National Center lishment of the Operating Fund, the guaranty for Education Statistics shall collect postsecond- ‘‘(1) to pay lender claims pursuant to section 428(b)(1)(G), section 428(j), section 437, and sec- agency shall deposit into the Operating Fund— ary education data on migrant students.’’. ‘‘(1) the loan processing and issuance fee paid (d) TECHNICAL AMENDMENTS.—Section 418A(e) tion 439(q); and ‘‘(2) to pay into the Agency Operating Fund by the Secretary pursuant to section 428(f); is amended by striking ‘‘authorized by subpart 4 ‘‘(2) the portfolio maintenance fee paid by the of this part in accordance with section established pursuant to section 422B a default prevention fee in accordance with section 428(l). Secretary pursuant to section 458; 417A(b)(2)’’ and inserting ‘‘in accordance with ‘‘(3) the default prevention fee paid in accord- section 402A(c)(1)’’. ‘‘(e) OWNERSHIP OF FEDERAL FUND.— ‘‘(1) IN GENERAL.—The Federal Fund of the ance with section 428(l); SEC. 409. BYRD SCHOLARSHIPS. guaranty agency, and any assets purchased or ‘‘(4) amounts retained by the guaranty agency (a) ELIGIBILITY.—Section 419G (20 U.S.C. pursuant to section 428(c)(6)(B) from collection 1070d–37) is amended by adding at the end the developed with funds from the Federal Fund or any other funds considered reserve funds on the on defaulted loans held by the agency, after following new subsection: payment of the Secretary’s equitable share, ex- ‘‘(e) TERMINATION OF ELIGIBILITY.—The eligi- date of enactment of this section, regardless of cluding amounts deposited in the Federal Fund bility of students from the Federated States of who holds or controls the reserves or assets, pursuant to section 422A(c)(2); and Micronesia, the Republic of the Marshall Is- shall be considered to be the property of the ‘‘(5) interest earned on the Federal Fund dur- lands, and Palau shall expire on September 30, United States to be used in the operation of the ing the first 3 years after the date of enactment 2001.’’. program authorized by this part, as provided in of this section, but only to the extent permitted (b) AUTHORIZATION OF APPROPRIATIONS.—Sec- subsection (d) of this section. by regulations prescribed by the Secretary to tion 419K (20 U.S.C. 1070d–41) is amended by ‘‘(2) NONLIQUID RESERVE FUND AND OTHER AS- permit a limited number of guaranty agencies striking ‘‘$10,000,000 for fiscal year 1993’’ and SETS.—Notwithstanding any other provision of (not to exceed 10) essential resources to main- inserting ‘‘$40,000,000 for fiscal year 1999’’. law, nonliquid reserve fund assets, such as buildings and equipment purchased or devel- tain sufficient operating funds and to restruc- PART B—FEDERAL FAMILY EDUCATION ture their operations in accordance with the re- LOAN PROGRAM oped by the guaranty agency with funds from the Federal Fund, or any other funds consid- quirements of this section and section 422A. SEC. 411. LIMITATION REPEALED. ered reserve funds on the date of enactment of ‘‘(d) USES OF FUNDS.— Section 421 (20 U.S.C. 1071) is amended by this section shall— ‘‘(1) IN GENERAL.—Funds in the Operating striking subsection (d). ‘‘(A) remain the property of the United States; Fund shall be used for activities related to stu- SEC. 412. ADVANCES TO RESERVE FUNDS. ‘‘(B) be used only for such purposes as the dent financial aid, including application proc- Section 422 (20 U.S.C. 1072) is amended— Secretary determines are appropriate; and essing, loan disbursement, enrollment and re- (1) in subsection (a)(2), by striking ‘‘(C) be subject to such restrictions on the dis- payment status management, default prevention ‘‘428(c)(10)(E)’’ and inserting ‘‘428(c)(9)(E)’’; position of such assets (which may include a re- activities, default collection activities, school (2) in subsection (c)(6)(B)(i), by striking ‘‘han- quirement that any sale of such assets be at not and lender training, financial awareness and dle written’’ and inserting ‘‘handle written, less than fair market value) as the Secretary de- outreach activities, compliance monitoring, electronic,’’; other loan program related activities in support (3) in subsection (c)(7) termines are appropriate. (A) by striking ‘‘to a guaranty agency—’’ and ‘‘(f) TRANSITION.— of postsecondary education and other student everything that follows through ‘‘(B) if the Sec- ‘‘(1) IN GENERAL.—In order to establish the financial aid related activities as determined by retary’’ and inserting ‘‘to a guaranty agency, if Agency Operating Fund authorized by section the guaranty agency. the Secretary’’; 422B, each guaranty agency may transfer up to ‘‘(2) SPECIAL RULE.—The guaranty agency (B) by striking ‘‘428(c)(10)(F)(v)’’ and insert- 180 days cash expenses for normal operating ex- may, in its discretion, transfer funds from the ing ‘‘428(c)(9)(F)(v)’’; penses, as a working capital reserve as defined Operating Fund to the Federal Student Loan (C) by inserting ‘‘and’’ after ‘‘cash needs,’’; in Office of Management and budget circular A– Reserve Fund for use in accordance with section and 87 (Cost Accounting Standards) from the Fed- 422A. Such transfer shall be irrevocable, and (D) by striking ‘‘or ensure’’ and everything eral Fund for deposit into the Agency Operating any funds so transferred shall become the prop- that follows and inserting a period; and Fund for use in the performance of its duties erty of the United States. (4) in the first and second sentences of sub- under this part. Such transfers may occur dur- ‘‘(3) DEFINITIONS.—For purposes of this sub- section (g)(1), by striking ‘‘or the program au- ing the first three years following the establish- section: thorized by part D of this title’’ each place it ment of the Operating Fund. However, no agen- ‘‘(A) The term ‘default collection activities’ appears. cy may transfer in excess of 50 percent of the means activities of a guaranty agency which are SEC. 413. GUARANTY AGENCY REFORMS. Federal Fund balance to its Operating Fund directly related to the collection of the loan on (a) FEDERAL STUDENT LOAN RESERVE FUND.— during any fiscal year. In determining the which a default claim has been paid to the par- Part B of title IV is amended by inserting after transfer amount, the agency shall insure that ticipating lender, including the due diligence ac- section 422 (20 U.S.C. 1072) the following new sufficient funds remain in the Federal Fund to tivities required pursuant to regulations of the section: pay lender claims within the required time peri- Secretary. ‘‘SEC. 422A. FEDERAL STUDENT LOAN RESERVE ods and to meet the reserve recall requirements ‘‘(B) The term ‘default prevention activities’ FUND. of the Balanced Budget Act of 1997. means activities of a guaranty agency which are ‘‘(a) ESTABLISHMENT.—Each guaranty agency ‘‘(2) REPAYMENT PROVISIONS.—Each guaranty directly related to providing collection assist- shall, not later than 60 days after the date of agency shall begin repayment of sums trans- ance to the lender on a delinquent loan, prior to H2556 CONGRESSIONAL RECORD — HOUSE April 29, 1998 the loan’s being legally in a default status, in- (iv) in subparagraph (E)— quent delinquency. A guaranty agency may cluding due diligence activities required pursu- (I) by striking ‘‘for ‘98 percent’;’’ and insert- transfer such fees earned under this subsection ant to regulations of the Secretary. ing ‘‘for ‘95 percent’;’’; no more frequently than monthly. ‘‘(C) The term ‘enrollment and repayment sta- (II) by striking ‘‘for ‘88 percent’;’’ and insert- ‘‘(C) For the purpose of earning the default tus management’ means activities of a guaranty ing ‘‘for ‘85 percent’;’’; and aversion fee, the term ‘current repayment sta- agency which are directly related to (III) by striking ‘‘for ‘78 percent’.’’ and insert- tus’ means that the borrower is not delinquent ascertaining the student’s enrollment status, in- ing ‘‘for ‘75 percent’.’’; in the payment of any principal or interest on cluding prompt notification to the lender of (v) in subparagraph (F)— the loan.’’. such status, an audit of the note or written (I) by striking ‘‘for ‘98 percent’;’’ and insert- SEC. 414. SCOPE AND DURATION OF PROGRAM. agreement to determine if the provisions of that ing ‘‘for ‘95 percent’;’’; Section 424(a) (20 U.S.C. 1074(a)) is amended— note or agreement are consistent with the (II) by striking ‘‘for ‘88 percent’;’’ and insert- (1) by striking ‘‘October 1, 2002’’ and inserting records of the guaranty agency as to the prin- ing ‘‘for ‘85 percent’;’’; and ‘‘October 1, 2004’’; and cipal amount of the loan guaranteed, and an (III) by striking ‘‘for ‘78 percent’.’’ and insert- (2) by striking ‘‘September 30, 2006’’ and in- examination of the note or agreement to assure ing ‘‘for ‘75 percent’.’’; serting ‘‘September 30, 2008’’. (vi) by striking subparagraph (D) and redesig- that the repayment provisions are consistent SEC. 415. LIMITATIONS ON INDIVIDUAL FEDER- with the provisions of this part. nating subparagraphs (E) and (F) as subpara- ALLY INSURED LOANS AND FEDERAL ‘‘(e) OWNERSHIP OF OPERATING FUND.—The graphs (D) and (E), respectively. LOAN INSURANCE. Operating Fund of the guaranty agency shall be (B) EFFECTIVE DATE.—The amendments made Section 425(a)(1)(A) (20 U.S.C. 1075(a)(1)(A)) is considered to be the property of the guaranty by subparagraph (A) of this paragraph apply to amended— agency. The Secretary may regulate the uses or loans for which the first disbursement is made (1) in clause (i)— expenditure of moneys in the Operating Fund on or after October 1, 1998. (A) by inserting ‘‘and’’ after the semicolon at with respect to activities required under guar- (2) EQUITABLE SHARE.—Section 428(c)(6) is the end of subclause (I); and anty agency agreements under subsections (b) amended— (B) by striking subclauses (II) and (III) and and (c) of section 428 until such time as a guar- (A) in subparagraph (A)— inserting the following: anty agency has repaid to the Federal Fund all (i) by striking ‘‘(A) For the purpose’’ and in- ‘‘(II) if such student is enrolled in a program reserve funds transferred under section 422A(f). serting ‘‘For the purpose’’; and of undergraduate education which is less than During any period in which funds are owed to (ii) by striking clause (ii) and inserting the one academic year, the maximum annual loan the Federal Fund as a result of a transfer under following: amount that such student may receive may not 422A(f), moneys in the Operating Fund may ‘‘(ii) an amount equal to 24 percent of such exceed the amount that bears the same ratio to only be used for expenses related to the student payments for use in accordance with section the amount specified in subclause (I) as the loan programs authorized under this part. The 422B.’’; length of such program measured in semester, Secretary may require such necessary reports (B) by striking subparagraphs (B) and (C); trimester, quarter, or clock hours bears to one and audits as provided in section 428(b)(2).’’. and academic year;’’; and (C) by redesignating clauses (i) and (ii) as (c) ADDITIONAL RECALL OF RESERVES.—Sec- (2) by inserting ‘‘and’’ after the semicolon at tion 422 (as amended by section 412) is further subparagraphs (A) and (B). the end of clause (iii). amended by adding at the end the following (3) GUARANTY AGENCY RESERVE LEVEL.—Sec- tion 428(c)(9)(C) is amended— SEC. 416. APPLICABLE INTEREST RATES. new subsection: (a) APPLICABLE INTEREST RATES.— ‘‘(i) ADDITIONAL RECALL OF RESERVES.— (A) by striking ‘‘80 percent pursuant to sec- tion 428(c)(1)(B)(ii)’’ and inserting ‘‘85 percent (1) AMENDMENT.—Section 427A (20 U.S.C. ‘‘(1) IN GENERAL.—Notwithstanding any other 1077a) is amended to read as follows: provision of law, the Secretary shall recall pursuant to paragraph (1)(B)(i) of this sub- $30,000,000 for each of the fiscal years 1999, 2000, section’’; and ‘‘SEC. 427A. APPLICABLE INTEREST RATES. 2001, 2002, and 2003 from the reserve funds held (B) by striking ‘‘30 working days’’ and insert- ‘‘(a) INTEREST RATES FOR NEW LOANS ON OR by guaranty agencies. ing ‘‘45 working days’’. AFTER JULY 1, 1998.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), ‘‘(2) DEPOSIT.—Funds recalled by the Sec- (4) PAYMENT OF CERTAIN COSTS.—Section retary under this subsection shall be deposited 428(f) is amended— with respect to any loan made, insured, or guar- in the Treasury. (A) by striking paragraph (1)(A) and inserting anteed under this part (other than a loan made ‘‘(3) REQUIRED SHARE.—The Secretary shall the following: pursuant to section 428B or 428C) for which the require each guaranty agency to return annu- ‘‘(1) PAYMENT FOR CERTAIN ACTIVITIES.—(A) first disbursement is made on or after July 1, ally reserve funds under paragraph (1) based on The Secretary shall, in accordance with the pro- 1998, the applicable rate of interest shall, during one-fifth of the agency’s required share. For visions of this paragraph, pay to each guaranty any 12-month period beginning on July 1 and purposes of this paragraph, a guaranty agen- agency for each fiscal year a loan processing ending on June 30, be determined on the preced- cy’s required share shall be determined as fol- and issuance fee equal to 0.65 percent of the ing June 1 and be equal to— lows: total principal amount of the loans on which in- ‘‘(A) the bond equivalent rate of 91-day Treas- ‘‘(A) The Secretary shall impose on each guar- surance was issued under this part during such ury bills auctioned at the final auction held anty agency an equal percentage reduction in fiscal year by such agency.’’; and prior to such June 1; plus the amount of the agency’s reserve funds held (B) in paragraph (1)(B), by striking the first ‘‘(B) 2.3 percent, as of September 30, 1996. sentence and inserting the following: ‘‘The pay- except that such rate shall not exceed 8.25 per- ‘‘(B) The equal percentage reduction shall be ment required by subparagraph (A) shall be cent. the percentage obtained by dividing— paid on a quarterly basis.’’. ‘‘(2) IN SCHOOL AND GRACE PERIOD RULES.— ‘‘(i) $150,000,000 by (5) DEFAULT AVERSION ASSISTANCE.—Section With respect to any loan under this part (other ‘‘(ii) the total amount of all such agencies’ re- 428(l) is amended to read as follows: than a loan made pursuant to section 428B or serve funds held as of September 30, 1996. ‘‘(l) DEFAULT AVERSION ASSISTANCE.— 428C) for which the first disbursement is made ‘‘(4) OFFSET OF REQUIRED SHARES.—If any ‘‘(1) ASSISTANCE REQUIRED.—Upon receipt of a on or after July 1, 1998, the applicable rate of guaranty returns to the Secretary any reserves proper request from a lender received not earlier interest for interest which accrues— in excess of the amount required under this sub- than the 60th day of delinquency, a guaranty ‘‘(A) prior to the beginning of the repayment section or subsection (h), the total amount re- agency having an agreement with the Secretary period of the loan; or quired to be returned under paragraph (1) shall under subsection (c) of this section shall engage ‘‘(B) during the period in which principal be reduced by the amount of such additional re- in default aversion activities designed to prevent need not be paid (whether or not such principal serve return. the default by a borrower on a loan covered by is in fact paid) by reason of a provision de- ‘‘(5) DEFINITION OF RESERVE FUNDS.—The term such agreement. scribed in section 428(b)(1)(M) or 427(a)(2)(C), ‘reserve funds’ when used with respect to a ‘‘(2) REIMBURSEMENT.—(A) A guaranty agen- shall be determined under paragraph (1) by sub- guaranty agency— cy may, in accordance with the provisions of stituting ‘1.7 percent’ for ‘2.3 percent’. ‘‘(A) includes any reserve funds in cash or liq- this paragraph, transfer from the Federal Stu- ‘‘(3) PLUS LOANS.—With respect to any loan uid assets held by the guaranty agency, or held dent Loan Reserve Account to the Operating under section 428B for which the first disburse- by, or under the control of, any other entity; Account a default aversion fee. Such fee shall be ment is made on or after July 1, 1998, the appli- and paid for any loan on which a claim for default cable rate of interest shall be determined under ‘‘(B) does not include building, equipment, or has not been presented that the guaranty agen- paragraph (1)— other nonliquid assets.’’. cy successfully brings into current repayment ‘‘(A) by substituting ‘3.1 percent’ for ‘2.3 per- (d) CONFORMING AMENDMENTS.— status on or before the 210th day after the loan cent’; and (1) REINSURANCE PAYMENTS.— becomes 60 days delinquent. ‘‘(B) by substituting ‘9.0 percent’ for ‘8.25 per- (A) AMENDMENTS.—Section 428(c)(1) (20 U.S.C. ‘‘(B) The default aversion fee shall be equal to cent’. 1078(c)(1)) is amended— 1 percent of the total unpaid principal and ac- ‘‘(b) LESSER RATES PERMITTED.—Nothing in (i) in subparagraph (A), by striking ‘‘98 per- crued interest on the loan at the time the re- this section or section 428C shall be construed to cent’’ and inserting ‘‘95 percent’’; quest is submitted by the lender. Such fee shall prohibit a lender from charging a borrower in- (ii) in subparagraph (B)(i), by striking ‘‘88 not be paid more than once on any loan for terest at a rate less than the rate which is appli- percent’’ and inserting ‘‘85 percent’’; and which the guaranty agency averts the default cable under this part. (iii) in subparagraph (B)(ii), by striking ‘‘78 unless the borrower remained current in pay- ‘‘(c) CONSULTATION.—The Secretary shall de- percent’’ and inserting ‘‘75 percent’’; ments for at least 12 months prior to the subse- termine the applicable rate of interest under this April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2557 section after consultation with the Secretary of ‘‘(C) For the purpose of clause (ii) of subpara- ‘‘(C) conduct unsolicited mailings of student the Treasury and shall publish such rate in the graph (B), a student shall qualify for a portion loan application forms to students enrolled in Federal Register as soon as practicable after the of an interest payment under paragraph (1) if secondary school or a postsecondary institution, date of determination.’’. the eligible institution has provided the lender or to parents of such students, except that ap- (2) CONFORMING AMENDMENT.—Section with a statement evidencing a determination of plications may be mailed to students who have 428B(d)(4) (20 U.S.C. 1078–2(d)(4)) is amended by need for a loan (as determined under part F of previously received loans guaranteed under this striking ‘‘section 427A(c)’’ and inserting ‘‘sec- this title) and the amount of such need, subject part by the guaranty agency; or’’; and tion 427A(a)(3)’’. to the provisions of subparagraph (D).’’. (2) by adding at the end the following new (b) SPECIAL ALLOWANCES.— (b) DURATION OF AUTHORITY.—Section sentence: (1) AMENDMENT.—Section 438(b)(2)(F) (20 428(a)(5) is amended— ‘‘It shall not be a violation of this paragraph for U.S.C. 1087–1(b)(2)(F)) is amended to read as (1) by striking ‘‘September 30, 2002’’ and in- follows: a guaranty agency to provide assistance to in- serting ‘‘September 30, 2004’’; and stitutions of higher education comparable to the ‘‘(F) LOANS DISBURSED AFTER JULY 1, 1998.— (2) by striking ‘‘September 30, 2006’’ and in- ‘‘(i) IN GENERAL.—Subject to paragraph (4) kinds of assistance provided to institutions of serting ‘‘September 30, 2008’’. higher education by the Department of Edu- and clauses (ii), (iii), and (iv) of this subpara- (c) ANNUAL LOAN LIMITS.—Section cation.’’. graph, the special allowance paid pursuant to 428(b)(1)(A) is amended— (j) GUARANTY AGENCY INFORMATION TO ELIGI- this subsection on loans for which the first dis- (1) in clause (i)— bursement is made on or after July 1, 1998, shall (A) by inserting ‘‘and’’ after the semicolon at BLE INSTITUTIONS.—Section 428(c)(2)(H)(ii) is be computed— the end of subclause (I); and amended to read as follows: ‘‘(I) by determining the average of the bond (B) by striking subclauses (II) and (III) and ‘‘(ii) the guaranty agency shall not require equivalent rates of 91-day Treasury bills auc- inserting the following: the payment from the institution of any fee for tioned for such 3-month period; ‘‘(II) if such student is enrolled in a program such information; and’’. ‘‘(II) by subtracting the applicable interest of undergraduate education which is less than (k) FORBEARANCE.—Section 428(c)(3) is rates on such loans from such average bond one academic year, the maximum annual loan amended— equivalent rate; amount that such student may receive may not (1) in subparagraph (A)(i), by striking ‘‘writ- ‘‘(III) by adding 2.8 percent to the resultant exceed the amount that bears the same ratio to ten’’; percent; and the amount specified in subclause (I) as the (2) in subparagraph (B), by inserting before ‘‘(IV) by dividing the resultant percent by 4. length of such program measured in semester, the semicolon the following: ‘‘, including for- ‘‘(ii) IN SCHOOL AND GRACE PERIOD.—In the trimester, quarter, or clock hours bears to one bearance granted after consideration of a bor- case of any loan for which the first disburse- rower’s total debt burden’’; and ment is made on or after July 1, 1998, and for academic year;’’; and (2) by inserting ‘‘and’’ after the semicolon at (3) in the last sentence— which the applicable rate of interest is described (A) by striking ‘‘and (ii)’’ and inserting ‘‘(ii)’’; in section 427A(a)(2), clause (i)(III) of this sub- the end of clause (iii). (d) SELECTION OF REPAYMENT PLANS.—Section and paragraph shall be applied by substituting ‘2.2 428(b)(1)(D) is amended by striking ‘‘and (iii)’’ (B) by inserting before the period at the end percent’ for ‘2.8 percent’. the following: ‘‘, and (iii) forbearance for peri- ‘‘(iii) PLUS LOANS.—In the case of any loan and inserting the following: ‘‘(iii) the student borrower may annually change the selection of ods not to exceed 60 days if the lender reason- for which the first disbursement is made on or ably determines that such suspensions are nec- after July 1, 1998, and for which the applicable a repayment plan under this part, and (iv)’’. (e) COINSURANCE.—Section 428(b)(1)(G) is essary to research or process information rel- rate of interest is described in section 427A(a)(3), ative to such loan or to collect appropriate doc- clause (i)(III) of this subparagraph shall be ap- amended by striking ‘‘not less than’’. (f) DEFERMENTS.—Section 428(b)(1)(M) is umentation relating to the borrower’s request plied by substituting ‘3.1 percent’ for ‘2.8 per- for a deferment or forbearance’’. cent’, subject to clause (iv) of this subpara- amended— (1) in clause (i)(I), by inserting before the (l) ASSIGNMENT.—Section 428(c)(8) is amend- graph. ed— ‘‘(iv) LIMITATION ON SPECIAL ALLOWANCES FOR semicolon the following: ‘‘, except that no bor- rower, notwithstanding the provisions of the (1) by striking ‘‘(A)’’; and PLUS LOANS.—In the case of loans disbursed on (2) by striking subparagraph (B). or after July 1, 1998, for which the interest rate promissory note, shall be required to borrow an additional loan under this title in order to be el- (m) AGENCY TERMINATION.—Section 428(c)(9) is determined under 427A(a)(3), a special allow- is amended— ance shall not be paid for a loan made under igible to receive a deferment under this clause’’; and (1) in subparagraph (E)— section 428B unless the rate determined for any (A) by inserting ‘‘or’’ at the end of clause (iv); 12-month period under section 427A(a)(3) ex- (2) in clause (ii), by inserting before the semi- colon the following: ‘‘, except that no borrower (B) by striking ‘‘; or’’ at the end of clause (v) ceeds 9 percent.’’. and inserting a period; and (2) CONFORMING AMENDMENT.—Section who qualifies for unemployment benefits shall be required to provide any additional paperwork (C) by striking clause (vi); 438(b)(2)(C)(ii) is amended by striking ‘‘In the (2) in subparagraph (F)(vii), by striking ‘‘to case’’ and inserting ‘‘Subject to subparagraph for a deferment under this clause’’. (g) LIMITATION, SUSPENSION, AND TERMI- avoid disruption’’ and everything that follows (F), in the case’’. and inserting ‘‘and to avoid disruption of the (c) EFFECTIVE DATE.—The amendments made NATION.—Section 428(b)(1)(U) is amended— student loan program.’’; by this section shall apply with respect to any (1) by striking ‘‘emergency action,,’’ each (3) in subparagraph (I), by inserting ‘‘on the loan made, insured, or guaranteed under part B place it appears and inserting ‘‘emergency ac- record’’ after ‘‘for a hearing’’; and of title IV of the Higher Education Act of 1965 tion,’’; and (4) in subparagraph (K)— for which the first disbursement is made on or (2) by striking ‘‘a compliance audit of each (A) by striking ‘‘and Labor’’ and inserting after July 1, 1998. lender’’ and inserting the following: ‘‘in the case of any lender that originates or holds more ‘‘and the Workforce’’; and SEC. 417. FEDERALLY GUARANTEED STUDENT (B) by striking everything after ‘‘guaranty LOANS. than $5,000,000 in loans made under this title agency system’’ and inserting a period. (a) REQUIREMENTS FOR FEDERAL INTEREST during an annual audit period, a compliance (n) LENDER REFERRAL.—Section 428(e) is SUBSIDIES.—Section 428(a)(2) (20 U.S.C. audit of such lender’’. 1078(a)(2)) is amended by striking everything (h) ADDITIONAL INSURANCE PROGRAM RE- amended— (1) in paragraph (1)(B)(ii), by striking ‘‘dur- preceding subparagraph (D) and inserting the QUIREMENTS.—Section 428(b)(1) is further ing the transition’’ and everything that follows following: amended— ‘‘(2) ADDITIONAL REQUIREMENTS TO RECEIVE (1) by striking ‘‘and’’ at the end of subpara- through ‘‘part D of this title’’; and SUBSIDY.—(A) Each student qualifying for a graph (W); (2) in paragraph (3), by striking ‘‘for costs of portion of an interest payment under paragraph (2) in subparagraph (X)— transition’’. (1) shall provide to the lender a statement from (A) by striking ‘‘428(c)(10)’’ and inserting (o) ACTION ON AGREEMENTS.—Section 428(g) is the eligible institution, at which the student has ‘‘428(c)(9)’’; and amended by striking ‘‘and Labor’’ and inserting been accepted for enrollment, or at which the (B) by striking the period at the end and in- ‘‘and the Workforce’’. student is in attendance, which certifies the eli- serting ‘‘; and’’; and (p) LENDERS-OF-LAST RESORT.—Section 428(j) gibility of the student to receive a loan under (3) by adding at the end the following new is amended by striking paragraph (3). this part and the amount of the loan for which subparagraph: (q) INCOME CONTINGENT REPAYMENT.—Section such student is eligible. ‘‘(Y) provides that the lender shall determine 428(m) is amended by striking ‘‘shall require at ‘‘(B) A student shall qualify for a portion of the eligibility of a borrower for a deferment de- least 10 percent of the borrowers’’ and inserting an interest payment under paragraph (1) if the scribed in subparagraph (M)(i) based on receipt ‘‘may require borrowers’’. eligible institution has provided the lender with of (i) a request for deferment from the borrower, (r) STATE SHARE OF DEFAULT COSTS.—Sub- a statement that— (ii) a newly completed loan application that section (n) of section 428 is repealed. ‘‘(i) at the lender’s request, sets forth such documents the borrower’s eligibility for a (s) BLANKET CERTIFICATE OF GUARANTY.—Sec- student’s estimated cost of attendance (as deter- deferment, or (iii) student status information re- tion 428 of the Act is amended by adding at the mined under section 472); ceived by the lender that the borrower is en- end the following new subsection: ‘‘(ii) sets forth such student’s estimated finan- rolled on at least a half-time basis.’’. ‘‘(n) BLANKET CERTIFICATE OF LOAN GUAR- cial assistance; and (i) RESTRICTIONS ON INDUCEMENTS.—Section ANTY.— ‘‘(iii) sets forth a schedule for disbursement of 428(b)(3) is amended— ‘‘(1) IN GENERAL.—Any guaranty agency that the proceeds of the loan in installments, consist- (1) by striking subparagraph (C) and inserting has or enters into any insurance program agree- ent with the requirements of section 428G. the following: ment with the Secretary under this part may— H2558 CONGRESSIONAL RECORD — HOUSE April 29, 1998 ‘‘(A) offer eligible lenders participating in the retary, exceed the cost to the Secretary, as simi- SEC. 420. DISBURSEMENT. agency’s guaranty program blanket certificates larly projected, in the absence of the agreement; (a) REQUIREMENTS.—Section 428G(a)(1) (20 of loan guaranty that permit the lender to make ‘‘(C) regarding the use of net revenues, as de- U.S.C. 1078–7(a)(1)) is amended by inserting loans without receiving prior approval from the scribed in the agreement under this section, for ‘‘greater than one semester, one trimester, one guaranty agency of individual loans for eligible such other activities in support of postsecondary quarter, or four months’’ after ‘‘period of enroll- borrowers enrolled in eligible programs at eligi- education as may be agreed to by the Secretary ment’’. ble institutions; and and the guaranty agency; (b) DISBURSEMENT.—Section 428G(b)(1) is ‘‘(B) provide eligible lenders with the ability ‘‘(D) regarding the standards by which the amended by adding at the end the following to transmit electronically data to the agency guaranty agency’s performance of its respon- new sentence: ‘‘An institution whose cohort de- concerning loans the lender has elected to make sibilities under the agreement will be assessed, fault rate (as determined under section 435(a)) under the agency’s insurance program via and the consequences for a guaranty agency’s for each of the three most recent fiscal years for standard reporting formats, such reporting to failure to achieve a specified level of perform- which data are available is less than 10 percent occur at reasonable, mutually acceptable inter- ance on 1 or more performance standards; shall be exempt from the requirements of this vals. ‘‘(E) regarding the circumstances in which a paragraph.’’. ‘‘(2) LIMITATIONS ON BLANKET CERTIFICATE OF guaranty agency’s agreement under this section (c) WITHHOLDING OF SECOND DISBURSE- GUARANTY.—A guaranty agency and eligible may be ended in advance of its expiration date; MENT.—Section 428G(d)(2) is amended by insert- lender may establish by mutual agreement limi- ‘‘(F) regarding such other businesses, pre- ing ‘‘by more than $300’’ after ‘‘under this tations or restrictions on the number or volume viously purchased or developed with reserve title’’. of loans issued by a lender under the blanket funds, that relate to the program under this SEC. 421. UNSUBSIDIZED STAFFORD LOANS. certificate of guaranty.’’. part and in which the Secretary permits the (a) ELIGIBLE BORROWERS.—Section 428H(b) SEC. 418. VOLUNTARY AGREEMENTS WITH GUAR- guaranty agency to engage; and (20 U.S.C. 1078–8(b)) is amended by striking ANTY AGENCIES. ‘‘(G) such other provisions as the Secretary ‘‘which—’’ and everything that follows and in- Part B of title IV is amended by inserting may determine to be necessary to protect the serting the following: after section 428 (20 U.S.C. 1078) the following United States from the risk of unreasonable loss ‘‘which certifies the eligibility of the student to new section: and to promote the purposes of this part; and receive a loan under this part and the amount ‘‘SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS ‘‘(4) shall provide for uniform lender partici- of the loan for which such student is eligible. A WITH GUARANTY AGENCIES. pation with the guaranty agency under the student shall qualify for a loan if the eligible in- ‘‘(a) VOLUNTARY AGREEMENTS.— terms of the agreement. stitution has provided the lender with a state- ‘‘(1) AUTHORITY.—Notwithstanding any other ‘‘(c) TERMINATION.—At the expiration or early ment that— provision of law, the Secretary may enter into a termination of an agreement under this section, ‘‘(1) at the lender’s request, sets forth such voluntary, flexible agreement with not more the Secretary shall reinstate the guaranty agen- student’s estimated cost of attendance (as deter- than 6 guaranty agencies under this section, in cy’s prior agreements under subsections (b) and mined under section 472); lieu of agreements with a guaranty agency (c) of section 428, subject only to such addi- ‘‘(2) sets forth such student’s estimated finan- under subsections (b) and (c) of section 428, tional requirements as the Secretary determines cial assistance, including a loan which qualifies under which the Secretary may waive or modify to be necessary in order to ensure the efficient for subsidy payments under section 428; and any requirement under this title applicable to transfer of responsibilities between the agree- ‘‘(3) sets forth a schedule for disbursement of the responsibilities of the Secretary and a guar- ment under this section and the agreements the proceeds of the loan in installments, consist- anty agency. under subsections (b) and (c) of section 428, in- ent with the requirements of section 428G.’’. ‘‘(2) ELIGIBILITY.—Any guaranty agency that cluding the guaranty agency’s compliance with (b) LOAN LIMITS.—Section 428H(d)(2)(A) is had one or more agreements with the Secretary reserve requirements under sections 422 and amended— under subsections (b) and (c) of section 428 as of 428.’’. (1) by inserting ‘‘and’’ after the semicolon at the day before the date of enactment of this sec- SEC. 419. FEDERAL CONSOLIDATION LOANS. the end of clause (i); and tion may enter into an agreement with the Sec- (a) AGREEMENTS WITH LENDERS.—Section (2) by striking clauses (ii) and (iii) and insert- retary under this subsection. 428C(a) (20 U.S.C. 1078–3(a)) is amended— ing the following: ‘‘(b) TERMS OF AGREEMENT.—An agreement (1) by striking subclause (II) of paragraph ‘‘(ii) if such student is enrolled in a program between the Secretary and a guaranty agency (3)(B)(i) and inserting the following: of undergraduate education which is less than under this section— ‘‘(II) that loans received during the 180-day one academic year, the maximum annual loan ‘‘(1) shall be developed by the Secretary, in period following the making of the consolidation amount that such student may receive may not consultation with the guaranty agency; loan may be added to the consolidation loan.’’; exceed the amount that bears the same ratio to ‘‘(2) shall be for a period not to exceed five and the amount specified in clause (i) as the length years, and may be renewed upon the agreement (2) by striking subparagraph (C) of paragraph of such program measured in semester, trimester, of the parties; (4) and inserting the following: quarter, or clock hours bears to one academic ‘‘(3) may include provisions— ‘‘(C) made under part D of this title;’’. year;’’. ‘‘(A) specifying the responsibilities of the (b) CONTENTS OF AGREEMENTS.—Section (c) QUALIFICATION.—Section 428H(e) is amend- guaranty agency under the agreement, such 428C(b) is amended— ed by adding at the end the following new para- as— (1) in paragraph (1)(A), by striking ‘‘under graph: ‘‘(i) administering the issuance of insurance this section and (i)’’ and everything that follows ‘‘(7) QUALIFICATION FOR FORBEARANCE, on loans made under this part on behalf of the and inserting ‘‘under this section;’’; DEFERMENT, AND INCOME-SENSITIVE REPAY- Secretary; (2) in paragraph (4)(C)(ii)— MENT.—A borrower of a loan made under this ‘‘(ii) monitoring insurance commitments made (A) by redesignating subclause (III) as sub- section may qualify for a forbearance or under this part; clause (IV); deferment, or an income-sensitive repayment ‘‘(iii) default prevention activities; (B) by inserting after subclause (II) the fol- plan for which the borrower is eligible, imme- ‘‘(iv) review of default claims made by lenders; lowing new clause: diately upon receipt by the lender or holder of ‘‘(v) payment of default claims; ‘‘(III) by the Secretary, in the case of a con- a request from the borrower. Any necessary sup- ‘‘(vi) collection of defaulted loans; solidation loan for which the application is re- porting documentation shall be secured by the ‘‘(vii) adoption of internal systems of account- ceived by an eligible lender on or after October lender or holder within 30 days of the request in ing and auditing that are acceptable to the Sec- 1, 1998, except that the Secretary shall pay such order to continue the forbearance, deferment, or retary, and reporting the result thereof to the interest only on that portion of the loan that re- income-sensitive repayment plan.’’. Secretary on a timely, accurate, and auditable pays Federal Stafford Loans for which the stu- (d) REPEAL.—Section 428H(f) is repealed. basis; dent borrower received an interest subsidy SEC. 422. REPEAL OF LOAN FORGIVENESS. ‘‘(viii) timely and accurate collection and re- under section 428 or Federal Direct Stafford Section 428J (20 U.S.C. 1078–10) is repealed. porting of such other data as the Secretary may Loans for which the borrower received an inter- SEC. 423. LEGAL POWERS AND RESPONSIBILITIES. require to carry out the purposes of the pro- est subsidy under section 455; or’’; and (a) GENERAL POWERS.—Section 432(a)(2) (20 grams under this title; (C) in subclause (IV) (as redesignated), by U.S.C. 1082(a)(2)) is amended by inserting ‘‘ex- ‘‘(ix) monitoring of institutions and lenders striking ‘‘subclause (I) or (II)’’ and inserting cept that this section shall not be deemed to participating in the program under this part; ‘‘subclause (I), (II), or (III)’’; and limit court review under chapter 7 of title 5, and (3) in paragraph (6)(A), by inserting before United States Code’’ after ‘‘Secretary’s control’’. ‘‘(x) the performance of other program func- the semicolon at the end the following: ‘‘except (b) AUDIT OF FINANCIAL TRANSACTIONS.—Sec- tions by the guaranty agency. that (i) a lender is not required to consolidate tion 432(f)(1) is amended— ‘‘(B) regarding the fees the Secretary shall loans described in subparagraph (D) or (E) of (1) in subparagraph (B), by striking ‘‘section pay, in lieu of revenues that the guaranty agen- subsection (a)(4); and (ii) a lender is not prohib- 435(d)(1) (D), (F), or (H);’’ and inserting ‘‘sec- cy may otherwise receive under this part, to the ited from establishing a minimum loan balance tion 435(d)(1); and’’; guaranty agency under the agreement, and for which it will process a consolidation loan (2) in subparagraph (C)— other funds that the guaranty agency may re- application’’. (A) by striking ‘‘and Labor’’ and inserting ceive or retain under the agreement, except that (c) EXTENSION OF AUTHORITY.—Section ‘‘and the Workforce’’; and in no case may the cost to the Secretary of the 428C(e) is amended by striking ‘‘September 30, (B) by striking ‘‘; and’’ and inserting a pe- agreement, as reasonably projected by the Sec- 2002’’ and inserting ‘‘September 30, 2004’’. riod; and April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2559

(3) by striking subparagraph (D). (2) in subparagraph (C) of paragraph (2), by ‘‘(B) DISCRETIONARY ELIGIBILITY CONDITIONED (c) PROGRAM OF ASSISTANCE.—Section striking ‘‘July 1, 1998,’’ and inserting ‘‘July 1, ON IMPROVEMENT.—Notwithstanding the expira- 432(k)(3) is amended by striking ‘‘Within 1 1999,’’; tion of the exception in paragraph (2)(C), the year’’ and everything that follows through (3) in paragraph (3), by inserting ‘‘or, at the Secretary may, in his discretion, continue to ‘‘1992, the’’ and inserting ‘‘The’’. request of the institution, a complete copy of the treat an institution described in subparagraph (d) COMMON FORMS AND FORMATS.—Section records for loans made under this part or of the (A) of this paragraph as an eligible institution 432(m) is amended— direct loan servicer for loans made under part for each of the one-year periods beginning on (1) in paragraph (1)(A), by striking ‘‘The Sec- D’’ after ‘‘and loan servicers’’; and July 1, 1999, and July 1, 2000, only if the institu- retary’’ and inserting ‘‘Subject to paragraph (2), (4) by adding at the end the following new tion submits by the beginning of such period evi- the Secretary’’; paragraphs: dence satisfactory to the Secretary that— (2) by striking subparagraph (C) of paragraph ‘‘(4) DEFINITION OF MITIGATING CIR- ‘‘(i) such institution has complied and is con- (1); CUMSTANCES.—For purposes of paragraph (2), tinuing to comply with the requirements of sub- (3) in subparagraph (D), by striking ‘‘Noth- an institution shall be treated as having excep- paragraph (A); and ing’’ and inserting ‘‘Subject to paragraph (2), tional mitigating circumstances that make appli- ‘‘(ii) such institution has made substantial im- nothing’’; cation of that paragraph inequitable if such in- provement, during each of the preceding one- (4) by redesignating subparagraph (D) of such stitution is certified by a certified public ac- year periods, in its cohort default rate. paragraph as subparagraph (C); countant to meet each of the following criteria: ‘‘(6) SPECIAL RULE BASED ON PARTICIPATION ‘‘(A) at least two-thirds of the students en- (5) by redesignating paragraphs (2) and (3) as RATE INDICES.—(A) An institution that dem- rolled on at least a half-time basis at the institu- paragraphs (3) and (4), respectively; onstrates to the Secretary that its participation tion— (6) by inserting after paragraph (1) the follow- rate index (as defined in regulations in effect on ‘‘(i) are eligible to receive a Federal Pell Grant ing new paragraph: July 1, 1996) is equal to or less than .0375 for award that is at least equal to one-half the max- ‘‘(2) FREE APPLICATION FOR FEDERAL STUDENT any of the three most recent fiscal years for imum Federal Pell Grant award for which the AID.—For academic year 1999–2000 and there- which data are available shall not be subject to student would be eligible based on his or her en- after, the Secretary shall prescribe the Free Ap- paragraph (2). rollment status; or ‘‘(B) An institution shall provide the Sec- plication for Federal Student Aid as the appli- ‘‘(ii) have an adjusted gross income of the stu- retary with sufficient data to determine its par- cation form under this part (other than sections dent, and his or her parents (unless the student ticipation rate index within 30 days after receiv- 428B and 428C).’’; and is an independent student), of less than the pov- ing an initial notification of its draft cohort de- (7) by adding at the end the following new erty level, as determined under criteria estab- fault rate. paragraph: lished by the Department of Health and Human ‘‘(C) Prior to publication of a final cohort de- ‘‘(5) MASTER PROMISSORY NOTE.— Services; ‘‘(A) DEVELOPMENT AND APPROVAL.—Within ‘‘(B) at least two-thirds of the students en- fault rate for an institution that provides the 180 days of enactment of this Act, the Secretary, rolled on a full-time basis at the institution in data under subparagraph (B), the Secretary in cooperation with representatives of guaranty any 12-month period ending not more than six shall notify the institution of its compliance or agencies, eligible lenders, institutions, students, months prior to the date the institution submits noncompliance with subparagraph (A).’’. (b) ELIGIBLE LENDER.—Section 435(d) is and organizations involved in student financial its appeal, and who remain enrolled beyond the amended— assistance, shall develop and approve a master point at which the student would be entitled to (1) in paragraph (1)(A)(ii)— promissory note that will allow for a multiyear a tuition refund of 100 percent— line of credit. Such note shall address the needs ‘‘(i) complete the educational program in (A) by striking ‘‘or’’ at the end of subclause of participants in the programs under this part. which they are enrolled within the time nor- (I); and (B) by inserting before the semicolon at the The Secretary shall also develop and approve a mally required to complete that program, as end of subclause (II) the following: ‘‘, or (III) it corresponding master promissory note for use specified in the institution’s enrollment con- is a bank that is a wholly owned subsidiary of under part D of this title that addresses the tract, catalog, or other materials; or needs of participants in the programs under ‘‘(ii) continue to be enrolled and are making a nonprofit foundation, the foundation is de- such part. satisfactory academic progress toward comple- scribed in section 501(c)(3) of the Internal Reve- ‘‘(B) SALE AND ASSIGNMENT; ENFORCEMENT.— tion of their program; or nue Code of 1986 and exempt from taxation Notwithstanding the preceding provisions of this ‘‘(iii) have entered active duty in the armed under section 501(a) of such Code and has been section, each loan made under a master promis- forces of the United States; and participating in the program authorized by this sory note providing for a line of credit may be ‘‘(C) at least two-thirds of the students en- part for three years as of the date of enactment sold and assigned independently of any other rolled on a full-time basis at the institution who of the Higher Education Amendments of 1998 loan made under the same promissory note, and complete the educational program in which they and only makes loans to undergraduate stu- each such loan shall be separately enforceable are enrolled within any 12-month period ending dents who are 22 years of age or younger and in all State and Federal courts on the basis of not more than six months prior to the date the has a portfolio of not more than $10,000,000; and an original or copy of the master promissory institution submits its appeal are placed for at in determining whether the making or holding note with its terms.’’. least 13 weeks in an employment position for of loans to students and parents under this part (e) DEFAULT REDUCTION MANAGEMENT.—Sec- which they have been trained, or are enrolled is the primary consumer credit function of the tion 432(n) is amended— for at least 13 weeks in higher level education eligible lender, all loans (including student (1) in paragraph (1), by striking ‘‘1993’’ and program for which the educational program of loans and other consumer loans) made or held inserting ‘‘1999’’; and the institution provided substantial preparation, as trustee or in a trust capacity for the benefit (2) in paragraph (3), by striking ‘‘and Labor’’ or have entered active duty in the armed forces of a third party shall be considered’’; and inserting ‘‘and the Workforce’’. of the United States. (2) in paragraph (1)— (f) REPORTING REQUIREMENT.—Section 432(p) ‘‘(5) REDUCTION OF DEFAULT RATES AT CER- (A) by striking ‘‘and’’ at the end of subpara- is amended by striking ‘‘State postsecondary re- TAIN MINORITY INSTITUTIONS.— graph (I); viewing entities designated under subpart 1 of ‘‘(A) BENEFICIARIES OF EXCEPTION REQUIRED (B) by striking the period at the end of sub- part H,’’. TO ESTABLISH MANAGEMENT PLAN.—After July 1, paragraph (J) and inserting ‘‘; and’’; and (C) by adding at the end the following new SEC. 424. STUDENT LOAN INFORMATION. 1998, any institution that has a cohort default rate that equals or exceeds 25 percent for each subparagraph: Section 433 (20 U.S.C. 1083) is amended— of the three most recent fiscal years for which ‘‘(K) a wholly owned subsidiary of a publicly (1) in the first sentence of subsection (a), by data are available and that relies on the excep- held holding company which, for the three years inserting ‘‘in simple and understandable terms’’ tion in paragraph (2)(C) of this subsection to preceding the date of enactment of this subpara- after ‘‘to the borrower’’; and continue to be an eligible institution shall— graph, through one or more subsidiaries (i) acts (2) in the first sentence of subsection (b), by ‘‘(i) submit to the Secretary a default manage- as a finance company, and (ii) participates in inserting ‘‘in simple and understandable terms’’ ment plan which the Secretary, in his discre- the program authorized by this part pursuant to after ‘‘under this subsection’’. tion, after consideration of the institution’s his- subparagraph (C).’’; and SEC. 425. DEFINITIONS. tory, resources, dollars in default, and targets (3) in paragraph (5), by adding at the end the (a) COHORT DEFAULT RATE.—Section 435(a) for default reduction, determines is acceptable following new sentence: (20 U.S.C. 1085(a)) is amended— and provides reasonable assurance that the in- ‘‘It shall not be a violation of this paragraph for (1) in subparagraph (A) of paragraph (2)— stitution will, by July 1, 2001, have a cohort de- a lender to provide assistance to institutions of (A) by striking ‘‘or’’ at the end of clause (i); fault rate that is less than 25 percent; higher education comparable to the kinds of as- and ‘‘(ii) engage an independent third party sistance provided to institutions of higher edu- (B) by striking clause (ii) and inserting the (which may be paid with funds received under cation by the Department of Education.’’. following: part B of title III) to provide technical assist- (c) LINE OF CREDIT.—Section 435(e) is amend- ‘‘(ii) there are exceptional mitigating cir- ance in implementing such default management ed to read as follows: cumstances within the meaning of paragraph plan; and ‘‘(e) LINE OF CREDIT.—The term ‘line of credit’ (4); or ‘‘(iii) provide to the Secretary, on an annual means an agreement between the lender and the ‘‘(iii) there are, in the judgment of the Sec- basis or at such other intervals as the Secretary borrower pursuant to a master promissory note retary, other exceptional mitigating cir- may require, evidence of cohort default rate im- under which the lender may make and disburse, cumstances that would make the application of provement and successful implementation of in addition to the initial loan, additional loans this paragraph inequitable.’’; such default management plan. in subsequent years.’’. H2560 CONGRESSIONAL RECORD — HOUSE April 29, 1998

SEC. 426. DISCHARGE. the school is located to be a school in which the ‘‘(8) EXCEPTION.—Notwithstanding paragraph (a) DOCUMENTATION.—Section 437(a) (20 enrollment of children counted under section (2), a lender may assess a lesser origination fee U.S.C. 1087(a)) is amended by adding at the end 1124(c) of the Elementary and Secondary Edu- for a borrower demonstrating greater financial the following: ‘‘A certification of permanent and cation Act of 1965 exceeds 30 percent of the total need as determined by such borrower’s adjusted total disability from a Veteran’s Hospital shall enrollment of that school. gross family income.’’. be acceptable documentation for discharge ‘‘(4) RATE OF DISCHARGE.—(A) Loans shall be (c) LENDING FROM PROCEEDS OF TAX EXEMPT under this subsection.’’. discharged under this subsection at the rate of— OBLIGATIONS.—Section 438 is amended— (b) DISCHARGE.—Section 437(c)(1) is amend- ‘‘(i) 30 percent for the first or second complete (1) by striking subsection (e); and ed— academic year of qualifying service as described (2) by redesignating subsection (f) as sub- (1) by inserting after ‘‘falsely certified by the in paragraph (3) (after completion of two years section (e). eligible institution,’’ the following: ‘‘or if the in- of service); and (d) STUDY.—Section 438 is amended by adding stitution failed to make a refund of loan pro- ‘‘(ii) 40 percent for the third complete year of at the end the following new subsection: ceeds which it owed to such student’s lender,’’; such qualifying service. ‘‘(f) STUDY.—The Comptroller General shall and ‘‘(B) The total amount that may be discharged conduct a statistical analysis of the subsidized (2) by adding at the end the following new under this subsection for any borrower shall not and unsubsidized student loan programs under sentences: ‘‘In the case of a discharge based exceed $17,750. part B to gather data on lenders’ policies on upon a failure to refund, the amount of the dis- ‘‘(C) If a portion of a loan is discharged under charging origination fees and to determine if charge shall not exceed that portion of the loan subparagraph (A) for any year, the entire there are any anomalies that would indicate which should have been refunded. The Sec- amount of interest on that loan that accrues for any institutional, programmatic, or socio- retary shall report to the Committee on Edu- that year shall also be discharged by the Sec- economic discrimination in the assessing or cation and the Workforce of the House of Rep- retary. waiving of such fees. The Comptroller General resentatives and the Committee on Labor and ‘‘(D) Nothing in this section shall be con- shall report to the appropriate committees of Human Resources of the Senate annually as to strued to authorize refunding of any repayment Congress within two years after the date of en- the dollar amount of loan discharges attrib- of a loan. actment of the Higher Education Amendments utable to failures to make refunds.’’. ‘‘(5) LIMITATION ON TEACHER ELIGIBILITY.— of 1998.’’. SEC. 427. CANCELLATION OF LOANS FOR CER- ‘‘(A) SECONDARY SCHOOL TEACHERS.—A bor- rower may not receive assistance under this sub- PART C—FEDERAL WORK-STUDY TAIN PUBLIC SERVICE. PROGRAMS Section 437 is further amended— section by virtue of teaching in a secondary (1) in the section heading, by striking out the school unless such borrower majored in the sub- SEC. 435. AMENDMENTS TO PART C. period at the end thereof and inserting in lieu ject area in which they are teaching. (a) EXTENSION OF AUTHORITY; DEFINITION.— thereof a semicolon and ‘‘loan forgiveness for ‘‘(B) ELEMENTARY SCHOOL TEACHERS.—A bor- (1) ELIGIBLE STUDENTS.—Section 441(a) (20 teaching.’’; rower may not receive assistance under this sub- U.S.C. 2751(a)) is amended by inserting after (2) by amending the heading for subsection (c) section by virtue of teaching in a elementary ‘‘professional students’’ the following: ‘‘, in- to read as follows: ‘‘DISCHARGE RELATED TO school unless such borrower demonstrates, in cluding students participating in an internship SCHOOL CLOSURE OR FALSE CERTIFICATION.—’’; accordance with State teacher certification or li- or practicum, or as a research assistant, as de- and censing requirements, subject matter knowledge termined by the Secretary,’’. (3) by adding at the end thereof the following and teaching skills in reading, writing, mathe- (2) EXTENSION OF AUTHORITY.—Section 441(b) new subsection: matics, and other subjects taught in elementary is amended by striking ‘‘$800,000,000 for fiscal ‘‘(e) CANCELLATION OF LOANS FOR TEACH- schools. year 1993’’ and inserting ‘‘$1,000,000,000 for fis- ING.— ‘‘(6) PREVENTION OF DOUBLE BENEFITS.—No cal year 1999’’. ‘‘(1) FUNCTIONS OF SECRETARY.—The Sec- borrower may, for the same service, receive a (3) DEFINITION OF COMMUNITY SERVICE.—Sec- retary shall discharge the liability of a borrower benefit under both this subsection and subtitle tion 441(c) is amended by striking ‘‘which are’’ of a qualifying loan by repaying the amount D of title I of the National and Community and inserting ‘‘that are performed off-campus or owed on the loan, to the extent specified in Service Act of 1990 (42 U.S.C. 12571 et seq.). on-campus and that are’’. paragraph (4), for service described in para- ‘‘(7) METHOD OF PAYMENT.—The Secretary (b) ALLOCATION OF FUNDS.—Section 442 (42 graph (3). shall specify in regulations the manner in which U.S.C. 2752) is amended— ‘‘(2) QUALIFYING LOANS.— lenders shall be reimbursed for loans made (1) by striking subsection (b); ‘‘(A) IN GENERAL.—For purposes of this sub- under this part, or portions thereof, that are (2) in subsection (c)(1), by striking ‘‘three- section, a loan is a qualifying loan if— discharged under this subsection. quarters of the remainder’’ and inserting ‘‘the ‘‘(i) the loan was made under section 428 on or ‘‘(8) LIST.—If the list of schools in which a remainder’’; after the date of enactment of the Higher Edu- teacher may perform service pursuant to para- (3) in subsection (c)(2)(A)(i), by striking ‘‘sub- cation Amendments of 1998 to a borrower who, graph (3) is not available before May 1 of any section (d)’’ and inserting ‘‘subsection (c)’’; on the date of entering into the note or other year, the Secretary may use the list for the year (4) in subsection (e)(1), by striking ‘‘subsection written evidence of the loan, had no outstand- preceding the year for which the determination (c)’’ and inserting ‘‘subsection (b)’’; and ing balance of principal or interest on any loan is made to make such service determination. (5) by redesignating subsections (c), (d), (e), made before such date; and ‘‘(9) CONTINUING ELIGIBILITY.—Any teacher and (f) as subsections (b), (c), (d), and (e), re- ‘‘(ii) the loan was obtained to cover the cost of who performs service in a school which— spectively. instruction for an academic year after the first ‘‘(A) meets the requirements of paragraph (3) (c) TUTORING AND LITERACY ACTIVITIES.— and second year of undergraduate education. in any year during such service; and Section 443 of the Higher Education Act of ‘‘(B) LIMITATION.—The Secretary may not ‘‘(B) in a subsequent year fails to meet the re- 1965 (42 U.S.C. 2753) is amended— repay loans described in subparagraph (A) to quirements of such subsection, (1) in subsection (b)(2)— cover the costs of instruction for more than two may continue to teach in such school and shall (A) by striking ‘‘and’’ at the end of subpara- academic years, or three academic years in the be eligible for loan cancellation pursuant to this graph (A); case of a program of instruction normally re- subsection with respect to such subsequent (B) by redesignating subparagraph (B) as sub- quiring five years. years.’’. paragraph (C); and ‘‘(C) TREATMENT OF CONSOLIDATION LOANS.— SEC. 428. DEBT MANAGEMENT OPTIONS. (C) by inserting after subparagraph (A) the A loan made under section 428C may be a quali- Section 437A (20 U.S.C. 1087–O) is repealed. following new subparagraph: fying loan for the purposes of this subsection SEC. 429. SPECIAL ALLOWANCES. ‘‘(B) in academic year 1999 and succeeding only to the extent that such loan was used to (a) COMPUTATION.—Section 438(b)(2) (20 academic years, an institution shall use at least repay a loan or loans that meet the require- U.S.C. 1087–1(b)(2)) is amended— 2 percent of the total amount of funds granted ments of subparagraphs (A) and (B), as deter- (1) in subparagraph (A), by striking ‘‘(E), and to such institution under this section for such mined in accordance with regulations prescribed (F)’’ and inserting ‘‘and (E)’’; and academic year in accordance with subsection by the Secretary. (2) in subparagraph (B)(iv), by striking ‘‘, (E), (d); and’’; and ‘‘(3) QUALIFYING SERVICE.—A loan shall be or (F)’’ and inserting ‘‘or (E)’’. (2) by adding at the end the following new discharged under paragraph (1) for service by (b) ORIGINATION FEES.—Section 438(c) is subsection: the borrower as a full-time teacher for each amended— ‘‘(d) TUTORING AND LITERACY ACTIVITIES.— complete academic year of service, after comple- (1) in paragraph (2)— ‘‘(1) USE OF FUNDS.—In any academic year to tion of the second academic year of service, in a (A) by striking ‘‘(other than’’ and inserting which subsection (b)(2)(B) applies, an institu- public or other nonprofit private elementary or ‘‘(including loans made under section 428H, but tion shall use the amount required to be used in secondary school— excluding’’; and accordance with this subsection to compensate ‘‘(A) which is in the school district of a local (B) by adding at the end the following new (including compensation for time spent in di- educational agency which is eligible in such sentence: ‘‘Except as provided in paragraph (8), rectly related training and travel) students— year for assistance pursuant to title I of the Ele- a lender is not authorized to assess an origina- ‘‘(A) employed as a reading tutor for children mentary and Secondary Education Act of 1965; tion fee under this paragraph unless the lender who are in preschool through elementary and assesses the same fee to all student borrowers.’’; school; or ‘‘(B) which for the purpose of this paragraph and ‘‘(B) employed in family literacy projects. and for that year has been determined by the (2) by adding at the end the following new ‘‘(2) PRIORITY FOR SCHOOLS.—An institution State educational agency of the State in which paragraph: shall— April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2561

‘‘(A) give priority, in using such funds, to the credit the student’s account at the institution ‘‘(b) INTEREST RATE.— employment of students in the provision of tu- for (A) tuition and fees, (B) in the case of insti- ‘‘(1) RATES FOR FDSL AND FDUSL.—For Federal toring services in schools that— tutionally owned housing, room and board, and Direct Stafford Loans and Federal Direct Un- ‘‘(i) are identified for school improvement (C) other institutionally provided goods and subsidized Stafford Loans for which the first under section 1116(c) of the Elementary and Sec- services.’’. disbursement is made on or after July 1, 1998, ondary Education Act of 1965; or (f) JOB LOCATION AND DEVELOPMENT PRO- the applicable rate of interest shall, during any ‘‘(ii) are selected by a local educational agen- GRAMS.—Section 446 (42 U.S.C. 2756) is amend- 12-month period beginning on July 1 and ending cy under section 15104(a)(2) of such Act; and ed— on June 30, be determined on the preceding June ‘‘(B) ensure that any student compensated (1) in subsection (a)(1)— 1 and be equal to— with such funds who is employed in a school se- (A) by striking ‘‘$50,000’’ and inserting ‘‘(A) the bond equivalent rate of 91-day Treas- lected under section 15104(a)(2) of the Elemen- ‘‘$60,000’’; and ury bills auctioned at the final auction held tary and Secondary Education Act of 1965 is (B) by striking ‘‘community service jobs, for prior to such June 1; plus trained in the instructional practices based on currently enrolled students’’ and inserting ‘‘(B) 2.3 percent, reliable, replicable research on reading used by ‘‘community service jobs and cooperative edu- except that such rate shall not exceed 8.25 per- the school pursuant to such section 15104. cation jobs, for currently enrolled students, in- cent. ‘‘(3) FEDERAL SHARE.—The Federal share of cluding students participating in work-study ‘‘(2) IN SCHOOL AND GRACE PERIOD RULES.— the compensation of work study students com- programs under this part’’; and With respect to any Federal Direct Stafford pensated under this subsection may exceed 75 (2) in subsection (b)— Loan or Federal Direct Unsubsidized Stafford percent. (A) by redesignating paragraphs (4) through Loan for which the first disbursement is made ‘‘(4) WAIVER.—The Secretary may waive the (6) as paragraphs (5) through (7); and on or after July 1, 1995, the applicable rate of requirements of this subsection if the Secretary (B) by inserting after paragraph (3) the fol- interest for interest which accrues— determines that enforcing such requirements lowing new paragraph: ‘‘(A) prior to the beginning of the repayment would cause a hardship for students at the in- ‘‘(4) provide that the institution will notify period of the loan; or stitution. the Secretary if the institution will use funds ‘‘(B) during the period in which principal ‘‘(5) RETURN OF FUNDS.—Any institution that under this section to develop cooperative edu- need not be paid (whether or not such principal does not use the amount required under this cation jobs and will provide assurances that— is in fact paid) by reason of a provision de- subsection, and that does not request and re- ‘‘(A) the funds provided under this paragraph scribed in section 428(b)(1)(M) or 427(a)(2)(C), ceive a waiver from the Secretary under para- will supplement and not supplant any coopera- shall be determined under paragraph (1) by sub- graph (4), shall return to the Secretary, at such tive education funds available to the institution; stituting ‘1.7 percent’ for ‘2.3 percent’. time as the Secretary may require for realloca- ‘‘(B) in the case of 2-year programs, funds ‘‘(3) PLUS LOANS.—With respect to Federal tion under paragraph (6), any balance of such will be used to develop and expand cooperative Direct PLUS Loan for which the first disburse- amount that is not used as so required. education, jobs for associate degree or certificate ment is made on or after July 1, 1998, the appli- ‘‘(6) REALLOCATION.—The Secretary shall students only; cable rate of interest shall be determined under reallot any amounts returned pursuant to para- ‘‘(C) the work portion of a cooperative edu- paragraph (1)— graph (5) among institutions that used at least cation job developed or expanded under this ‘‘(A) by substituting ‘3.1 percent’ for ‘2.3 per- 4 percent of the total amount of funds granted paragraph will be related to a student’s aca- cent’; and to such institution under this section to com- demic program; and ‘‘(B) by substituting ‘9.0 percent’ for ‘8.25 per- pensate students employed in tutoring and lit- ‘‘(D) the institution will furnish the Secretary cent’. a report on cooperative education jobs expanded eracy activities in the preceding academic year. ‘‘(4) REPAYMENT INCENTIVES.—Notwithstand- Such funds shall be reallotted among such insti- and developed under this paragraph, includ- ing any other provision of this part, the Sec- tutions on the same basis as excess eligible ing— retary is authorized to prescribe in regulation amounts are allocated to institutions pursuant ‘‘(i) how the funds were used; such reductions in the interest rate paid by a ‘‘(ii) a list of employers and whether the em- to section 442(c). Funds received by institutions borrower of a loan made under this part as the ployer is a for-profit or not-for-profit entity; pursuant to this paragraph shall be used in the Secretary determines appropriate to encourage and same manner as amounts required to be used in on-time repayment. Such reductions may be of- ‘‘(iii) the employers’ role in the cooperative accordance with this subsection.’’. fered only if the Secretary determines they are education job.’’. (d) GRANT REQUIREMENTS.— both cost neutral and in the best financial inter- (g) WORK COLLEGES EXTENSION OF AUTHOR- (1) COMMUNITY SERVICE.—Section 443(b)(2)(A) est of the Federal Government. Any increase in ITY.—Section 448(f) (42 U.S.C. 2756b(f)) is (42 U.S.C. 2753(b)(2)(A)) is amended— subsidy costs resulting from such reductions (A) by striking ‘‘in fiscal year 1994 and suc- amended by striking ‘‘1993’’ and inserting ‘‘1999’’. must be completely offset by corresponding sav- ceeding fiscal years,’’; and ings in funds available for the Direct Loan Pro- (B) by inserting ‘‘(including time spent in PART D—WILLIAM D. FORD FEDERAL gram in that fiscal year from section 458 and travel or training, or both, directly related to DIRECT LOAN PROGRAM other administrative accounts. such community service)’’ after ‘‘community SEC. 436. SELECTION OF INSTITUTIONS. ‘‘(5) PUBLICATION.—The Secretary shall deter- service’’. (a) GENERAL AUTHORITY.—Section 453(a) (20 mine the applicable rates of interest under this (2) USE OF FUNDS FOR INDEPENDENT AND LESS- U.S.C. 1087c(a)) is amended— subsection after consultation with the Secretary THAN-FULL-TIME STUDENTS.—Section 443(b)(3) (1) by striking ‘‘PHASE-IN’’ and everything of the Treasury and shall publish such rate in (42 U.S.C. 2753(b)(3)) is amended to read as fol- that follows through ‘‘GENERAL AUTHORITY.—’’ the Federal Register as soon as practicable after lows: and inserting ‘‘GENERAL AUTHORITY.—’’; and the date of determination.’’. ‘‘(3) provide that in the selection of students (2) by striking paragraphs (2), (3), and (4). (2) EFFECTIVE DATE.—The amendments made for employment under such work-study pro- (b) SELECTION CRITERIA.—Section 453(b)(2) is by this section shall apply with respect to any gram, only students, who demonstrate financial amended by striking ‘‘prescribe,’’ and every- loan made under part D of title IV of the Higher need in accordance with part F of this title, and thing that follows through the end of subpara- Education Act of 1965 for which the first dis- who meet the requirements of section 484 will be graph (B) and inserting ‘‘prescribe.’’. bursement is made on or after July 1, 1998. assisted, except that if the institution’s grant (c) ORIGINATION.—Section 453(c) is amended— (b) CONSOLIDATION LOANS.—The first sentence under this part is directly or indirectly based in (1) in paragraph (2)— of section 455(g) is amended by striking every- part on the financial need demonstrated by stu- (A) in the heading, by striking ‘‘TRANSITION thing after ‘‘section 428C(a)(4)’’ and inserting a dents who are (A) attending the institution less SELECTION CRITERIA’’ and inserting ‘‘SELECTION period. than full time, or (B) independent students, CRITERIA’’; SEC. 438. CONTRACTS. then grant funds shall be made available to (B) by striking ‘‘For academic year 1994–1995, such less than full-time and independent stu- the Secretary’’ and inserting ‘‘The Secretary’’; Section 456(b) (20 U.S.C. 1087f(b)) is amend- dents;’’. (C) by striking subparagraph (A); and ed— (1) by inserting ‘‘and’’ after the semicolon at (3) AVAILABILITY OF EMPLOYMENT.—Section (D) in subparagraph (E), by striking every- 443(b)(6) is amended by striking everything after thing after ‘‘deficiencies’’ and inserting a semi- the end of paragraph (3); ‘‘in need thereof’’ and inserting a semicolon. colon; and (2) by striking paragraph (4); and (3) by redesignating paragraph (5) as para- (4) ACADEMIC RELEVANCE.—Section 443(c)(4) is (E) by redesignating subparagraphs (B) amended by inserting before the semicolon at through (H) as subparagraphs (A) through (G); graph (4). the end the following: ‘‘, to the maximum extent and SEC. 439. FUNDS FOR ADMINISTRATIVE EX- practicable’’. (2) in paragraph (3)— PENSES. (e) FLEXIBLE USE OF FUNDS.—Section 445(b) (A) in the heading, by striking ‘‘AFTER TRAN- Section 458 (20 U.S.C. 1087h) is amended— (42 U.S.C. 2755(b)) is amended by adding at the SITION’’; and (1) in subsection (a)(1), by striking subpara- end the following new paragraph: (B) by striking ‘‘For academic year 1995–1996 graph (B) and everything that follows and in- ‘‘(3) An eligible institution may, with the per- and subsequent academic years, the Secretary’’ serting the following: mission of a student, make payments to the stu- and inserting ‘‘The Secretary’’. ‘‘(B) account maintenance fees payable to dent under this part by crediting the student’s SEC. 437. TERMS AND CONDITIONS. guaranty agencies under part B and calculated account at the institution or by making a direct (a) INTEREST RATES.— in accordance with paragraph (2), deposit to the student’s account at a depository (1) AMENDMENT.—Section 455(b) (20 U.S.C. not to exceed (from such funds not otherwise institution. An eligible institution may only 1087e(b)) is amended to read as follows: appropriated) $626,000,000 in fiscal year 1999, H2562 CONGRESSIONAL RECORD — HOUSE April 29, 1998

$726,000,000 in fiscal year 2000, $770,000,000 in plete academic year of service, after completion (b) ALLOCATION OF FUNDS.—Section 462 (20 fiscal year 2001, $780,000,000 in fiscal year 2002, of the second academic year of service, in a pub- U.S.C. 1087bb) is amended— and $795,000,000 in fiscal year 2003. Account lic or other nonprofit private elementary or sec- (1) by striking subsection (b); maintenance fees under subparagraph (B) of ondary school— (2) in subsection (c)(1), by striking ‘‘three- this paragraph shall be paid quarterly and de- ‘‘(A) which is in the school district of a local quarters of the remainder’’ and inserting ‘‘the posited in the Operating Fund established under educational agency which is eligible in such remainder’’; 422B. The Secretary may carry over funds avail- year for assistance pursuant to title I of the Ele- (3) in subsection (c)(2), by striking ‘‘subsection able under this section to a subsequent fiscal mentary and Secondary Education Act of 1965; (g)’’ and inserting ‘‘subsection (f)’’; year.’’; and (4) in subsection (c)(3)— (2) by striking paragraph (2) of subsection (a) ‘‘(B) which for the purpose of this paragraph (A) by striking ‘‘subsection (d)’’ and inserting and inserting the following: and for that year has been determined by the ‘‘subsection (c)’’; ‘‘(2) CALCULATION BASIS.—Account mainte- State educational agency of the State in which (B) by striking ‘‘subsection (f)’’ and inserting nance fees payable to guaranty agencies under the school is located to be a school in which the ‘‘subsection (e)’’; and paragraph (1)(B) shall be calculated for fiscal enrollment of children counted under section (C) by striking ‘‘subsection (g)’’ and inserting year 1999 and fiscal year 2000, on the basis of 1124(c) of the Elementary and Secondary Edu- ‘‘subsection (f)’’; 0.12 percent of the original principal amount of cation Act of 1965 exceeds 30 percent of the total (5) in subsection (f)(1), by striking ‘‘subsection outstanding loans on which insurance was enrollment of that school. (g)’’ and inserting ‘‘subsection (f)’’; issued under part B, and for fiscal years 2001 ‘‘(4) PERCENTAGE OF CANCELLATION.—(A) The (6) in subsection (j)(2)— and succeeding fiscal years, shall be calculated percent of a loan which shall be canceled under (A) by striking ‘‘subsection (c)’’ and inserting on the basis of 0.10 percent of the original prin- paragraph (1) of this subsection is at the rate ‘‘subsection (b)’’; and cipal amount of outstanding loans on which in- of— (B) by striking ‘‘subsection (c) of section 462’’ surance was issued under part B.’’; and ‘‘(i) 30 percent for the first or second complete and inserting ‘‘subsection (b)’’; and (3) by striking subsection (d). academic year of qualifying service as described (7) by redesignating subsections (c) through (j) as subsections (b) through (i), respectively. SEC. 440. AUTHORITY TO SELL LOANS. in paragraph (3) (after completion of two years (c) DEFAULT REDUCTION PENALTIES.—Section Part D of title IV (20 U.S.C. 1087a et seq.) is of service); and 462(e)(2)(A) (as redesignated by subsection (b)(7) amended by adding at the end the following ‘‘(ii) 40 percent for the third complete year of of this section) is amended by inserting before new section: such qualifying service. ‘‘(B) The total amount that may be canceled the semicolon at the end the following: ‘‘, except ‘‘SEC. 459. AUTHORITY TO SELL LOANS. under this subsection for any borrower shall not that a plan shall not be required with respect to ‘‘The Secretary, in consultation with the Sec- exceed $17,750. any such institution that has a default rate of retary of the Treasury, is authorized to sell ‘‘(C) If a portion of a loan is canceled under less than 20 percent and has less than 100 stu- loans made under this part on such terms as the this subsection for any year, the entire amount dents who have loans under this part in any Secretary determines are in the best interest of of interest on such loan which accrues for such academic year’’. the United States, except that any such sale year shall be canceled. (d) DEFINITIONS FOR DEFAULT RATE CALCULA- shall not result in any cost to the Federal Gov- ‘‘(D) Nothing in this section shall be con- TIONS.—Section 462(g) (as redesignated by sub- ernment. Notwithstanding any other provision strued to authorize refunding of any repayment section (b)(7) of this section) is amended by add- of law, the proceeds of any such sale may be of a loan. ing at the end the following new paragraph: used by the Secretary to offer reductions in the ‘‘(5) LIMITATION ON TEACHER ELIGIBILITY.— ‘‘(5) For the purpose of this subsection, the interest rate paid by a borrower of a loan made ‘‘(A) SECONDARY SCHOOL TEACHERS.—A bor- term ‘satisfactory arrangements to resume pay- under this part as the Secretary determines ap- rower may not receive assistance under this sub- ment’ includes— propriate to encourage on-time repayment. Such section by virtue of teaching in a secondary ‘‘(A) receipt of voluntary monthly payments reductions may be offered only if the Secretary school unless such borrower majored in the sub- for three consecutive months after the time peri- determines they are in the best financial inter- ject area in which they are teaching. ods specified in paragraph (4); ests of the Federal Government.’’. ‘‘(B) ELEMENTARY SCHOOL TEACHERS.—A bor- ‘‘(B) receipt of voluntary payments sufficient SEC. 441. CANCELLATION OF LOANS FOR CER- rower may not receive assistance under this sub- to bring the loan current prior to the calculation TAIN PUBLIC SERVICE. section by virtue of teaching in a elementary being made for any award year under para- Part D of title IV is amended by inserting school unless such borrower demonstrates, in graph (3); after section 459, as added by section 440, the accordance with State teacher certification or li- ‘‘(C) obtaining any deferment, postponement, following new section: censing requirements, subject matter knowledge rehabilitation, forbearance, or cancellation of ‘‘SEC. 459A. CANCELLATION OF LOANS FOR CER- and teaching skills in reading, writing, mathe- the loan after the time periods specified in para- TAIN PUBLIC SERVICE. matics, and other subjects taught in elementary graph (4), but prior to the calculation being ‘‘(a) CANCELLATION OF PERCENTAGE OF DEBT schools. made for any award year under paragraph (3); BASED ON YEARS OF QUALIFYING SERVICE.— ‘‘(6) DEFINITION.—For the purpose of this sec- ‘‘(D) receipt of the full amount due on the ‘‘(1) FUNCTIONS OF SECRETARY.—The percent tion, the term ‘year’ where applied to service as loan after the time periods specified in para- specified in paragraph (4) of the total amount of a teacher means an academic year as defined by graph (4), but prior to the calculation being any qualifying loan shall be canceled for each the Secretary. made for any award year under paragraph (3); complete year of service by the borrower de- ‘‘(7) PREVENTION OF DOUBLE BENEFITS.—No or scribed in paragraph (3). borrower may, for the same volunteer service, ‘‘(E) any other arrangements to resume pay- ‘‘(2) QUALIFYING LOANS.— receive a benefit under both this section and ment which the Secretary determines to be satis- ‘‘(A) IN GENERAL.—For purposes of this sub- subtitle D of title I of the National and Commu- factory.’’. section, a loan is a qualifying loan if— nity Service Act of 1990 (42 U.S.C. 12571 et seq.). (e) REPORTS TO CREDIT BUREAUS OF PAYMENT ‘‘(i) the loan was a Federal Direct Stafford ‘‘(b) SPECIAL RULES.— RESUMPTIONS.—Section 463(c) (20 U.S.C. Loan made on or after the date of enactment of ‘‘(1) LIST.—If the list of schools in which a 1087cc(c)) is amended by adding at the end the the Higher Education Amendments of 1998 to a teacher may perform service pursuant to sub- following new paragraph: borrower who, on the date of entering into the section (a)(3) is not available before May 1 of ‘‘(5) Each institution of higher education note or other written evidence of the loan, had any year, the Secretary may use the list for the shall notify the appropriate credit bureau orga- no outstanding balance of principal or interest year preceding the year for which the deter- nizations whenever a borrower of a loan that is on any loan made before such date; and mination is made to make such service deter- made and held by the institution and that is in ‘‘(ii) the loan was obtained to cover the cost of mination. default makes 12 consecutive monthly payments instruction for an academic year after the first ‘‘(2) CONTINUING ELIGIBILITY.—Any teacher on such loan, for the purpose of encouraging and second year of undergraduate education. who performs service in a school which— such organizations to update the status of infor- ‘‘(B) LIMITATION.—The Secretary may not ‘‘(A) meets the requirements of subsection mation maintained with respect to that bor- repay loans described in subparagraph (A) to (a)(3) in any year during such service; and rower.’’. cover the costs of instruction for more than two ‘‘(B) in a subsequent year fails to meet the re- (f) INCENTIVE REPAYMENT PROGRAMS.—Sec- academic years, or three academic years in the quirements of such subsection, tion 463 is amended by adding at the end the case of a program of instruction normally re- may continue to teach in such school and shall following new subsection: quiring five years. ‘‘(f) INCENTIVE REPAYMENT PROGRAMS.— be eligible for loan cancellation pursuant to sub- ‘‘(C) TREATMENT OF CONSOLIDATION LOANS.— ‘‘(1) PROGRAM AUTHORIZED.—Any institution section (a)(1) with respect to such subsequent A Federal Direct Consolidation Loan may be a of higher education participating in the pro- years.’’. qualifying loan for the purposes of this sub- gram under this part may establish, with the section only to the extent that such loan was PART E—FEDERAL PERKINS LOANS approval of the Secretary, an incentive repay- used to repay a loan or loans that meet the re- SEC. 445. AMENDMENTS TO PART E. ment program designed to reduce defaults on quirements of subparagraphs (A) and (B), as de- (a) EXTENSION OF AUTHORITY.—Section 461(b) loans under this part and to assist in replenish- termined in accordance with regulations pre- (20 U.S.C. 1087aa(b)) is amended— ing the student loan fund established under this scribed by the Secretary. (1) in paragraph (1), by striking ‘‘1993’’ and part. ‘‘(3) QUALIFYING SERVICE.—A loan shall be inserting ‘‘1999’’; and ‘‘(2) CONTENTS OF PROGRAM.—An incentive re- cancelled under paragraph (1) for service by the (2) in paragraph (2), by striking ‘‘1997’’ each payment program under this part may contain borrower as a full-time teacher for each com- place it appears and inserting ‘‘2003’’. provisions that— April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2563

‘‘(A) offer a reduction in the interest rate on January 1, 1986, is unable to complete the pro- (1) REPEAL.—Subsection (c) of section 467 (20 a loan on which the borrower has made 48 con- gram in which such student is enrolled due to U.S.C. 1087gg(c)) is repealed. secutive monthly payments, but in no event may the closure of the institution, then the Secretary (2) DEPOSIT.—Any funds in the Perkins Re- the interest rate be reduced by more than one shall discharge the borrower’s liability on the volving Loan Fund on the date of enactment of percent; loan (including interest and collection fees) by this Act shall be deposited in the general fund ‘‘(B) provide for a discount on the balance repaying the amount owed on the loan and of the Treasury. owed on a loan on which the borrower pays the shall subsequently pursue any claim available (l) STATUS CONFIRMATION REPORTS.—Section principal and interest in full prior to the end of to such borrower against the institution and its 468 (20 U.S.C. 1087hh) is amended— the applicable repayment period, but in no event affiliates and principals, or settle the loan obli- (1) by inserting ‘‘(a) IN GENERAL.—’’ before shall such discount exceed 5 percent of the un- gation. ‘‘In carrying out’’; and paid principal balance due on the loan at the ‘‘(2) ASSIGNMENT.—A borrower whose loan has (2) by adding at the end the following new time the early repayment is made; and been discharged pursuant to this subsection subsection: ‘‘(C) include such other incentive repayment shall be deemed to have assigned to the United ‘‘(b) STUDENT STATUS CONFIRMATION RE- options as the institution determines, with the States the right to a loan refund up to the PORTS.—The Secretary shall ensure that borrow- approval of the Secretary, will carry out the ob- amount discharged against the institution and ers under this part are included in the student jectives of this subsection. its affiliates and principals. status confirmation report required by the Sec- ‘‘(3) NO NET COST TO THE GOVERNMENT.—No ‘‘(3) ELIGIBILITY FOR ADDITIONAL ASSIST- retary in the same manner as borrowers under incentive option contained in a program author- ANCE.—The period of a student’s assistance at parts B and D of this title.’’. ized by this subsection may be charged to the an institution at which the student was unable PART F—NEED ANALYSIS Federal Government.’’. to complete a course of study due to the closing SEC. 446. COST OF ATTENDANCE. (g) TERMS OF LOANS.— of the institution shall not be considered for Section 472 (20 U.S.C. 1087ll) is amended— (1) AGGREGATE AMOUNT.—Section 464(a)(2)(B) purposes of calculating the student’s period of (1) in paragraph (2), by inserting after ‘‘per- (20 U.S.C. 1087dd(a)(2)(B)) is amended by strik- eligibility for additional assistance under this sonal expenses’’ the following: ‘‘, including a ing ‘‘the aggregate of the loans for all years’’ title. reasonable allowance for the rental or purchase and inserting ‘‘the aggregate unpaid principal ‘‘(4) SPECIAL RULE.—A borrower whose loan of a personal computer,’’; and amount for all loans’’. has been discharged pursuant to this subsection (2) in paragraph (10), by striking everything (2) ALLOCATION TO LESS-THAN-FULL-TIME STU- shall not be precluded, because of that dis- after ‘‘determining costs’’ and inserting a semi- DENTS.—Section 464(b) is amended— charge, from receiving additional grant, loan, or colon. (A) by striking ‘‘(1)’’; and work assistance under this title for which the (B) by striking paragraph (2). SEC. 447. DATA ELEMENTS. borrower would be otherwise eligible (but for the Section 474(b)(3) (20 U.S.C. 1087nn(b)(3)) is (3) QUALIFICATION FOR DEFERMENTS.—Section default on the discharged loan). The amount 464(c)(2) is amended by adding at the end the amended by inserting ‘‘, excluding the student’s discharged under this subsection shall be treat- parents,’’ after ‘‘family of the student’’. following new subparagraph: ed the same as loans under section 465(a)(5). SEC. 448. FAMILY CONTRIBUTION FOR DEPEND- ‘‘(C) An individual with an outstanding loan ‘‘(5) REPORTING.—The Secretary or institu- ENT STUDENTS. balance who meets the eligibility criteria for a tion, as the case may be, shall report to credit (a) PARENTS’ CONTRIBUTION FROM ADJUSTED deferment described in subparagraph (A) as in bureaus with respect to loans that have been AVAILABLE INCOME.—Section 475(b)(3) (20 effect on the date of enactment of this subpara- discharged pursuant to this subsection.’’. U.S.C. 1087oo(b)(3)) is amended by inserting ‘‘, graph shall be eligible for deferment under this (i) CANCELLATION.—Section 465 (20 U.S.C. excluding the student’s parents,’’ after ‘‘number paragraph notwithstanding any contrary provi- 1087ee) is amended— of the family members’’. sion of the promissory note under which the (1) in subsection (a)— (b) FAMILY CONTRIBUTION FROM ASSETS.— loan or loans were made, and notwithstanding (A) in paragraph (2)(C), by striking ‘‘section Section 475 is amended— any amendment (or effective date provision re- 676(b)(9)’’ and inserting ‘‘section 635(a)(10)’’; (1) in subsection (b)(1)(B), by striking ‘‘par- lating to any amendment) to this section made (B) by striking subparagraph (H) of para- ents’ contribution’’ and inserting ‘‘family con- prior to the date of such deferment.’’. graph (2) and inserting the following: tribution’’; (4) CLERICAL AMENDMENT.—The matter fol- ‘‘(H) as a full-time nurse or medical techni- (2) in the heading of subsection (d), by strik- lowing clause (iv) of section 464(c)(2)(A) is cian providing health care services;’’; ing ‘‘PARENTS’ CONTRIBUTION’’ and inserting amended by striking ‘‘subparagraph (B)’’ and (C) by striking the period at the end of sub- ‘‘FAMILY CONTRIBUTION’’; inserting ‘‘subparagraph (A) of paragraph (1)’’. paragraph (I) of such paragraph and inserting (3) in subsection (d)(1)— (h) REHABILITATION AND DISCHARGE OF a semicolon; (A) by striking ‘‘parents’ contribution’’ and LOANS.—Section 464 is further amended by add- (D) by adding at the end of such paragraph inserting ‘‘family contribution’’; and ing at the end the following new subsections: the following new subparagraphs: (B) by striking ‘‘parental net worth’’ in sub- ‘‘(g) REHABILITATION OF LOANS.—(1)(A) If the ‘‘(J) as a member of the Commissioned Corps paragraph (A) and inserting ‘‘family net borrower of a loan made under this part who of the Public Health Service of the United worth’’; has defaulted on the loan makes 12 on-time, States; or (4) in subsection (d)(2)— consecutive, monthly payments of amounts ‘‘(K) as a non-physician mental health profes- (A) by striking ‘‘PARENTAL’’ in the heading owed on the loan, the loan shall be considered sional providing health care services in a health and inserting ‘‘FAMILY’’; rehabilitated, and the institution that made the professional shortage area designated under sec- (B) by striking ‘‘parental net worth’’ and in- loan (or the Secretary, in the case of a loan held tion 332 of the Public Health Service Act.’’; serting ‘‘family net worth’’; and by the Secretary) shall instruct any credit re- (E) in the last sentence of paragraph (2), by (C) by inserting ‘‘, for both the parents and porting organization to which the default was striking ‘‘section 602(a)(1)’’ and inserting ‘‘sec- the dependent student’’ after ‘‘by adding’’; reported to remove the default from the borrow- tion 602(3)’’; and (5) by striking subsection (h); and er’s credit history. (F) by adding at the end the following new (6) by redesignating subsection (i) as sub- ‘‘(B) As long as the borrower continues to paragraph: section (h). make scheduled repayments on a loan rehabili- ‘‘(7) An individual with an outstanding loan (c) STUDENT CONTRIBUTION FROM AVAILABLE tated under this paragraph, the rehabilitated obligation who performs service of any type that INCOME.—Section 475(g) is amended— loan shall be subject to the same terms and con- is described in paragraph (2) as in effect on the (1) in paragraph (2)— ditions, and qualify for the same benefits and date of enactment of this paragraph shall be eli- (A) in subparagraph (D), by striking ‘‘$1,750; privileges, as other loans made under this part. gible for cancellation under this section for such and’’ and inserting ‘‘$3,000, or a successor ‘‘(C) The borrower of a rehabilitated loan service notwithstanding any contrary provision amount prescribed by the Secretary under sec- shall not be precluded by section 484 from re- of the promissory note under which the loan or tion 478;’’; ceiving additional grant, loan, or work assist- loans were made, and notwithstanding any (B) by striking the period at the end of sub- ance under this title (for which he or she is oth- amendment (or effective date provision relating paragraph (E) and inserting ‘‘; and’’; and erwise eligible) on the basis of defaulting on the to any amendment) to this section made prior to (C) by inserting after subparagraph (E) the loan prior to such rehabilitation. the date of such service.’’; and following new subparagraph: ‘‘(D) A borrower may obtain the benefit of this (2) in subsection (b), by adding at the end the ‘‘(F) an allowance for parents’ negative avail- paragraph with respect to rehabilitating the following new sentence: ‘‘To the extent feasible, able income, determined in accordance with loan only once. the Secretary shall pay the amounts for which paragraph (6).’’; and ‘‘(2) If the borrower of loan made under this any institution qualifies under this subsection (2) by adding at the end the following new part who has defaulted on that loan makes 6 no later than three months after the institution paragraph: on-time, consecutive, monthly payments of files an institutional application for campus- ‘‘(6) ALLOWANCE FOR PARENTS’ NEGATIVE amounts owed on such loan, the borrower’s eli- based funds.’’. AVAILABLE INCOME.—The allowance for parents’ gibility for grant, loan, or work assistance (j) DISTRIBUTION OF ASSETS.—Section 466 (20 negative available income is the amount, if any, under this title shall be restored. A borrower U.S.C. 1087ff) is amended— by which the sum of the amounts deducted may obtain the benefit of this paragraph with (1) by striking ‘‘1996’’ each place it appears under subparagraphs (A) through (F) of para- respect to restored eligibility only once. and inserting ‘‘2003’’; and graph (2) exceeds the parents’ total income (as ‘‘(h) DISCHARGE.— (2) by striking ‘‘1997’’ each place it appears defined in section 480).’’. ‘‘(1) IN GENERAL.—If a student borrower who and inserting ‘‘2004’’. (e) ADJUSTMENTS TO STUDENTS CONTRIBUTION received a loan made under this part on or after (k) COLLECTION OF DEFAULTED LOANS.— FOR ENROLLMENT PERIODS OTHER THAN NINE H2564 CONGRESSIONAL RECORD — HOUSE April 29, 1998

MONTHS.—Section 475 is amended by adding at (1) in the first sentence, by inserting after ‘‘(or (A) by striking ‘‘A, C, D, and E’’ and insert- the end the following new subsection: both)’’ the following: ‘‘or, in extraordinary cir- ing ‘‘A through E’’; ‘‘(i) ADJUSTMENTS TO STUDENTS CONTRIBUTION cumstances, the amount of the expected family (B) by striking ‘‘and to determine the need of FOR ENROLLMENT PERIODS OF LESS THAN NINE contribution,’’; and a student for the purpose of part B of this title’’; MONTHS.—For periods of enrollment of less than (2) by inserting after the second sentence the and nine months, the student’s contribution from following new sentence: ‘‘Special circumstances (C) by striking the last sentence and inserting adjusted available income (as determined under may include tuition expenses at an elementary the following: ‘‘The Secretary shall include, on subsection (g)) is determined, for purposes other or secondary school, medical or dental expenses the first page of the form, a prominently dis- than subpart 2 of part A, by dividing amount not covered by insurance, unusually high child played notice to students and parents advising determined under such subsection by nine, and care costs, recent unemployment of a family them to check with the college financial aid of- multiplying the result by the number of months member, or other changes in a family’s income fice in the event that they have unusual cir- in the period of enrollment.’’. or assets or a student’s status. Extraordinary cumstances which may affect their eligibility for SEC. 449. FAMILY CONTRIBUTION FOR INDEPEND- circumstances shall be defined by the Secretary financial aid.’’; ENT STUDENTS WITHOUT DEPEND- by regulation.’’. (2) in paragraph (2)— ENTS OTHER THAN A SPOUSE. (b) REFUSAL OR ADJUSTMENT OF LOAN CER- (A) by striking ‘‘A, C, D, and E’’ each place (a) ADJUSTMENTS FOR ENROLLMENT PERIODS TIFICATIONS.—Section 479A is amended by strik- it appears and inserting ‘‘A through E’’; OTHER THAN NINE MONTHS.—Section 476(a) (20 ing subsection (c) and inserting the following: (B) by striking ‘‘and the need of a student for U.S.C. 1087pp(a)) is amended— ‘‘(c) REFUSAL OR ADJUSTMENT OF LOAN CER- the purpose of part B of this title,’’; and (1) by striking ‘‘and’’ at the end of paragraph TIFICATIONS.—On a case-by-case basis, an eligi- (1)(B); ble institution may refuse to certify a statement (C) by striking ‘‘or have the student’s need es- (2) by inserting ‘‘and’’ after the semicolon at which permits a student to receive a loan under tablished for the purpose of part B of this title’’; the end of paragraph (2); and part B, or refuse to make a loan under part D, (3) in the first sentence of paragraph (3), by (3) by inserting after paragraph (2) the follow- or may certify a loan amount or make a loan inserting ‘‘processing loan applications and’’ ing new paragraph: that is less than the student’s determination of after ‘‘for the purposes of’’; and ‘‘(3) for periods of enrollment of other than 9 need (as determined under this part), if the rea- (4) by adding at the end the following new months, for purposes other than subpart 2 of son for the action is documented and provided paragraph: part A— in written form to the student and the student ‘‘(5) ELECTRONIC FORMS.—(A) The Secretary, ‘‘(A) dividing the quotient resulting under is afforded an opportunity to appeal the action in cooperation with representatives of agencies paragraph (2) by nine; and in a timely fashion. No eligible institution shall and organizations involved in student financial ‘‘(B) multiplying the result by the number of discriminate against any borrower or applicant assistance, including private computer software months in the period of enrollment;’’. in obtaining a loan on the basis of race, na- providers, shall develop an electronic version of (b) CONTRIBUTION FROM AVAILABLE IN- tional origin, religion, sex, marital status, age, the form described in paragraph (1). Such an COME.—Section 476(b)(1)(A)(iv) is amended— or handicapped status.’’. electronic version shall not require a signature (1) by striking ‘‘allowance of—’’ and inserting SEC. 453. TREATMENT OF OTHER FINANCIAL AS- to be collected at the time such version is sub- ‘‘allowance of the following amount (or a suc- SISTANCE. mitted, as permitted by the Secretary. The Sec- cessor amount prescribed by the Secretary under Section 480(j)(3) (20 U.S.C. 1087vv(j)(3)) is retary shall prescribe such version no later than section 478)—’’; amended by inserting after ‘‘paragraph (1),’’ the 120 days after the date of enactment of the (2) by striking ‘‘$3,000’’ each place it appears following: ‘‘a post-service benefit under chapter Higher Education Amendments of 1998. in subclauses (I) and (II) and inserting 30 of title 38, United States Code, or’’. ‘‘(B) Nothing in this section shall prohibit the ‘‘$5,500’’; and PART G—GENERAL PROVISIONS use of the version of the form developed by the (3) by striking ‘‘$6,000’’ in subclause (III) and Secretary pursuant to subparagraph (A) by an inserting ‘‘$8,500’’. SEC. 461. DEFINITIONS. eligible institution, eligible lender, guaranty Section 481 (20 U.S.C. 1088), as amended by SEC. 450. FAMILY CONTRIBUTION FOR INDEPEND- agency, State grant agency, private computer ENT STUDENTS WITH DEPENDENTS section 102(b), is further amended by adding at software providers, a consortium thereof, or OTHER THAN A SPOUSE. the end the following new subsection: such other entities as the Secretary may des- Section 477(a) (20 U.S.C. 1087qq(a)) is amend- ‘‘(d) DISTANCE LEARNING.—For the purpose of ignate. ed— any program under this title, the term ‘distance ‘‘(C) The Secretary shall provide to such orga- (1) by striking ‘‘and’’ at the end of paragraph learning’ means an educational process that is nization or consortium necessary specifications (2); characterized by the separation, in time or that software developed, produced, distributed (2) by inserting ‘‘and’’ after the semicolon at place, between instructor and student. Distance (including any diskette, modem or network com- the end of paragraph (3); and learning may include courses offered principally munications, or otherwise) must meet. Included (3) by inserting after paragraph (3) the follow- through the use of— in the specifications shall be test cases that such ing new paragraph: ‘‘(1) television, audio, or computer trans- organization or consortia must use to prove ac- ‘‘(4) for periods of enrollment of other than 9 mission, such as open broadcast, closed circuit, curacy of its cases to the Secretary. If the re- months, for purposes other than subpart 2 of cable, microwave, or satellite transmission; sults of the test cases are inconsistent with the part A— ‘‘(2) audio or computer conferencing; provisions of this part, the Secretary shall no- ‘‘(A) dividing the quotient resulting under ‘‘(3) video cassettes or discs; or tify the submitting organizations or consortium paragraph (3) by nine; and ‘‘(4) correspondence.’’. of his objection within 30 days of such submis- ‘‘(B) multiplying the result by the number of SEC. 462. MASTER CALENDAR. sion. In the absence of such an objection the or- months in the period of enrollment;’’. (a) REQUIRED SCHEDULE.—Section 482(a) (20 ganization or consortium may use the electronic SEC. 451. REGULATIONS; UPDATED TABLES AND U.S.C. 1089(a)) is amended by adding at the end form as submitted. No fee shall be charged to AMOUNTS. the following new paragraphs: students in connection with the use of the elec- Section 478(b) (20 U.S.C. 1087rr(b)) is amend- ‘‘(3) The Secretary shall, to the extent prac- tronic form, or of any other electronic forms ed— ticable, notify eligible institutions, guaranty used in conjunction with such form in applying (1) by striking ‘‘For each academic year’’ and agencies, lenders, interested software providers, for Federal or State student financial assist- inserting the following: and, upon request, other interested parties, by ance. ‘‘(1) REVISED TABLES.—For each academic December 1 prior to the start of an award year ‘‘(D) The Secretary shall ensure that data col- year’’; and of minimal hardware and software requirements lection complies with section 552a of title 5, (2) by adding at the end the following new necessary to administer programs under this United States Code, and that any entity using paragraph: title. the version of the form developed by the Sec- ‘‘(2) REVISED AMOUNTS.—For each academic ‘‘(4) The Secretary shall attempt to conduct retary pursuant to subparagraph (A) shall year after academic year 1997–1998, the Sec- training activities for financial aid administra- maintain reasonable and appropriate adminis- retary shall publish in the Federal Register re- tors and others in an expeditious and timely trative, technical, and physical safeguards to vised income protection allowances for the pur- manner prior to the start of such award year in ensure the integrity and confidentiality of the pose of sections 475(g)(2)(D) and 476(b)(1)(A)(iv). order to ensure that all participants are in- information, and to protect against security Such revised allowances shall be developed by formed of all administrative requirements.’’. threats, or unauthorized uses or disclosures of increasing each of the dollar amounts contained (b) DELAY OF EFFECTIVE DATE.—Section the information provided on the version of the in such section by a percentage equal to the es- 482(c) is amended by striking the second sen- form. Data collected by such version of the form timated percentage increase in the Consumer tence and inserting the following: ‘‘The Sec- shall be used only for the application, award, Price Index (as determined by the Secretary) be- retary shall provide a period for public comment and administration of aid awarded under this tween December 1996 and the December next of not less than 60 days after publication of any title, State aid, or aid awarded by eligible insti- preceding the beginning of such academic year, notice of proposed rulemaking affecting pro- tutions or such entities as the Secretary may and rounding the result to the nearest $10.’’. grams under this title.’’. designate. No data collected by such version of SEC. 452. DISCRETION OF STUDENT FINANCIAL SEC. 463. FORMS AND REGULATIONS. the form shall be used for making final aid AID ADMINISTRATORS. (a) COMMON FINANCIAL AID FORM.—Section awards under this title until such data have (a) SPECIAL CIRCUMSTANCES.—Section 479A(a) 483(a) (20 U.S.C. 1090(a)) is amended— been processed by the Secretary or a contractor (20 U.S.C. 1087tt(a)) is amended— (1) in paragraph (1)— or designee of the Secretary.’’. April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2565

(b) STREAMLINED REAPPLICATION PROCESS.— (2) EFFECTIVE DATE.—The amendment made database does not constitute an endorsement or Section 483(b)(1) is amended by striking ‘‘, with- by paragraph (1) shall apply with respect to fi- recommendation of the database or its provider in 240 days’’ and everything that follows nancial assistance to cover the costs of attend- or any services or products of such provider. through ‘‘of 1992,’’. ance for periods of enrollment beginning after The Secretary shall provide additional direct (c) INFORMATION TO COMMITTEES.—Section the date of enactment of this Act. links to information resources from which stu- 483(c) is amended by striking ‘‘and Labor’’ and SEC. 465. STATE COURT JUDGMENTS. dents may obtain information about fraudulent inserting ‘‘and the Workforce’’. Section 484A (20 U.S.C. 1091a) is amended by and deceptive practices in the provision of serv- (d) TOLL-FREE INFORMATION.—Section 483(d) adding at the end the following new subsection: ices related to student financial aid.’’. is amended by striking ‘‘section 633(c)’’ and in- ‘‘(c) STATE COURT JUDGMENTS.—A judgment (c) DISCLOSURES.—Section 485(e) is amended— serting ‘‘section 685(d)(2)(C)’’. of a State court for the recovery of money pro- (1) in paragraph (2)— (e) REPEAL.—Subsection (f) of section 483 is vided as grant, loan, or work assistance under (A) by striking ‘‘his parents, his guidance’’ repealed. this title that has been assigned or transferred and inserting ‘‘the student’s parents, guid- SEC. 464. STUDENT ELIGIBILITY. to the Secretary under this title may be reg- ance’’; and (a) IN GENERAL.—Section 484(a) (20 U.S.C. istered in any district court by filing a certified (B) by adding at the end the following new 1091(a))— copy of the judgment and the assignment or sentence: ‘‘If the institution is a member of a (1) in paragraph (4), by striking ‘‘the institu- other transfer to the Secretary. A judgment so national collegiate athletic association that tion’’ and everything that follows through registered shall have the same force and effect, compiles graduation rate data on behalf of its ‘‘lender), a document’’ and inserting ‘‘the Fed- and may be enforced in the same manner, as a member institutions that the Secretary deter- eral Government, as part of the original finan- judgment of the district court of the district in mines is substantially comparable to the infor- cial aid application process, a certification’’; which the judgment is registered.’’. mation described in paragraph (1), the distribu- and tion of the compilation of such data to all sec- SEC. 466. INFORMATION FOR STUDENTS. (2) in paragraph (4)(B), by inserting after ‘‘so- ondary schools in the United States shall fulfill (a) INFORMATION DISSEMINATION.—Section cial security number,’’ the following: ‘‘and if a the responsibility of the institution to provide 485(a) (20 U.S.C. 1092(a)) is amended— dependent student, the social security number of information to a prospective student athlete’s (1) in paragraph (1), by striking the second any parent of such student whose income infor- guidance counselor and coach.’’; sentence and inserting the following: ‘‘The in- mation is required to be included on the form,’’. (2) in paragraph (4), by striking ‘‘when such formation required by this section shall be pro- (b) TERMINATION OF ELIGIBILITY.—Section completion or graduation rate includes students duced and be made readily available upon re- 484(j) is amended by inserting ‘‘until September transferring into and out of such institution’’ quest, through appropriate publications, mail- 30, 2001’’ after ‘‘a student shall be eligible’’. and inserting ‘‘for students transferring into the ings, and electronic media to all current stu- (c) VERIFICATION OF INCOME DATA.—Section institution or information showing the rate at dents and to any prospective student. Each eli- 484 is amended by adding at the end the follow- which students transfer out of the institution’’; gible institution shall, on an annual basis, pro- ing new subsection: and ‘‘(q) VERIFICATION OF INCOME DATA.— vide to all enrolled students a list of the infor- (3) by striking paragraph (9) and inserting the ‘‘(1) CONFIRMATION WITH IRS.—The Secretary mation that is required to be provided by insti- of Education, in cooperation with the Secretary following: tutions to students by this Act and section 444 ‘‘(9) The reports required by this subsection of the Treasury, is authorized to confirm with of the General Education Provisions Act (also shall be due on each July 1 and shall cover the the Internal Revenue Service the adjusted gross referred to as the Family Educational Rights 1-year period ending August 31 of the preceding income, filing status, and exemptions reported and Privacy Act of 1974), together with a state- year.’’. by applicants (including parents) under this ment of the procedures required to obtain such (d) CAMPUS CRIME REPORTING AND DISCLO- title on their Federal income tax returns for the information.’’; SURE.—Section 485(f) is amended— purpose of verifying the information reported by (2) in paragraph (3)— (1) in paragraph (1)— applicants on student financial aid applica- (A) in the first sentence, by striking ‘‘, or en- (A) by striking subparagraph (F) and insert- tions. rolled in any program of an eligible institution ing the following: ‘‘(2) NOTIFICATION.—The Secretary shall es- for which the prior program provides substantial ‘‘(F) Statistics concerning the occurrence on tablish procedures under which an applicant is preparation’’; and campus, during the most recent calendar year, notified that the Internal Revenue Service will (B) by striking subparagraph (A) and insert- and during the 2 preceding calendar years, of disclose to the Secretary tax return information ing the following: the following criminal offenses or arrests re- as authorized under section 6103(l)(13) of the In- ‘‘(A) shall be made available by July 1 each ported to campus security authorities, campus ternal Revenue Code of 1986.’’. year to current and prospective students prior to officials who have direct administrative respon- (d) SUSPENSION OF ELIGIBILITY FOR DRUG-RE- enrolling or entering into any financial obliga- sibility for student or campus activities, discipli- LATED OFFENSES.— tion; and’’; and nary officers and other officials responsible for (1) AMENDMENT.—Section 484 is further (3) by adding at the end the following new amended by adding at the end thereof the fol- resolving student disciplinary matters, athletic paragraph: department officials, or local police agencies (in- lowing new subsection: ‘‘(6) Each institution may, but is not required ‘‘(r) SUSPENSION OF ELIGIBILITY FOR cluding offenses handled through the campus to, provide supplemental information to enrolled disciplinary system): DRUGRELATED OFFENSES.— and prospective students showing the comple- ‘‘(1) IN GENERAL.—An individual student who ‘‘(i) murder; tion or graduation rate for students transferring has been convicted of any offense under any ‘‘(ii) sex offenses, forcible or nonforcible; into the institution or information showing the Federal or State law involving the possession or ‘‘(iii) robbery; rate at which students transfer out of the insti- sale of a controlled substance shall not be eligi- ‘‘(iv) aggravated assault; tution.’’. ble to receive any grant, loan, or work assist- ‘‘(v) burglary; (b) DEPARTMENTAL PUBLICATIONS.—Section ‘‘(vi) motor vehicle theft; ance under this title during the period begin- 485(d) is amended— ning on the date of such conviction and ending ‘‘(vii) manslaughter; (1) by striking ‘‘(1) assist’’ and inserting ‘‘(A) ‘‘(viii) larceny; after the interval specified in the following assist’’; table: ‘‘(ix) arson; and (2) by striking ‘‘(2) assist’’ and inserting ‘‘(B) ‘‘(x) arrests or persons referred for campus ‘‘If convicted of an assist’’; disciplinary action for liquor law violations, offense involving: (3) by inserting ‘‘(1)’’ before ‘‘The Secretary’’ drug-related violations, and weapons posses- The possession of a Ineligibility period is: the first place it appears; and sion.’’; controlled sub- (4) by adding at the end the following new stance: (B) by striking subparagraph (H); and First offense ...... 1 year paragraphs: (C) by redesignating subparagraph (I) as sub- Second offense ... 2 years ‘‘(2) The Secretary shall, to the extent such paragraph (H); Third offense ..... indefinite information is available, compile information (2) in paragraph (4)— The sale of a con- describing State prepaid tuition programs and (A) by striking ‘‘Upon request of the Sec- trolled substance: disseminate such information to States, eligible retary, each’’ and inserting ‘‘On an annual First offense ...... 2 years institutions, students, and parents in depart- basis, each’’; Second offense ... indefinite mental publications. (B) by striking ‘‘paragraphs (1)(F) and ‘‘(2) REHABILITATION.—A student whose eligi- ‘‘(3) The Secretary shall, to the extent prac- (1)(H)’’ and inserting ‘‘paragraph (1)(F)’’; bility has been suspended under paragraph (1) ticable, update the Department’s Internet site to (C) by striking ‘‘and Labor’’ and inserting may resume eligibility before the end of the pe- include direct links to databases which contain ‘‘and the Workforce’’; riod determined under such paragraph if the information on public and private financial as- (D) by striking ‘‘1995’’ and inserting ‘‘2000’’; student satisfactorily completes a drug rehabili- sistance programs. The Secretary shall only pro- (E) by striking ‘‘and’’ at the end of subpara- tation program that complies with such criteria vide direct links to databases which can be graph (A); as the Secretary shall prescribe for purposes of accessed without charge and shall verify with (F) by redesignating subparagraph (B) as sub- this paragraph. appropriate parties that the databases included paragraph (C); and ‘‘(3) DEFINITIONS.—As used in this subsection, in the direct link are not in any way providing (G) by inserting after subparagraph (A) the the term ‘controlled substance’ has the meaning fraudulent information. The Secretary shall following new subparagraph: given in section 102(6) of the Controlled Sub- prominently display adjacent to the direct link ‘‘(B) make copies of the statistics submitted to stances Act (21 U.S.C. 802(6)).’’. a disclaimer indicating that a direct link to a the Secretary available to the public; and’’; H2566 CONGRESSIONAL RECORD — HOUSE April 29, 1998

(3) in paragraph (6)— SEC. 468. PROGRAM PARTICIPATION AGREE- ‘‘(e) DEFINITIONS.—For purposes of this sec- (A) by striking ‘‘paragraphs (1)(F) and MENTS. tion, the term ‘current award year’ means the (1)(H)’’ and inserting ‘‘paragraph (1)(F)’’; and (a) REQUIRED CONTENT.—Section 487(a) (20 award year during which the participating in- (B) by adding at the end the following new U.S.C. 1094(a)) is amended— stitution indicates its intention to cease partici- sentence: ‘‘Such statistics shall not identify vic- (1) in the first sentence, by striking ‘‘, except pation.’’. with respect to a program under subpart 4 of tims of crimes or persons accused of crimes.’’; SEC. 470. DISTANCE EDUCATION DEMONSTRA- and part A,’’; TION PROGRAMS. (2) in paragraph (3), by striking subparagraph (4) by adding at the end the following new Part G of title IV is amended— (B) and inserting the following: (1) by redesignating section 487B (20 U.S.C. paragraphs: ‘‘(B) the appropriate State agency;’’; ‘‘(8)(A) Each institution participating in any (3) in paragraph (4), by striking ‘‘subsection 1094b) as section 487C; and program under this title that maintains either a (b)’’ and inserting ‘‘subsection (c)’’; (2) by inserting after section 487A (as amended police or security department of any kind shall (4) in paragraph (15), by striking ‘‘State re- by section 469) the following new section: make, keep, and maintain a daily log, written in view entities under subpart 1 of part H’’ and in- ‘‘SEC. 487B. DISTANCE EDUCATION DEMONSTRA- a form that can be easily understood, recording serting ‘‘appropriate State agencies’’; TION PROGRAMS. in chronological order all crimes reported to (5) by striking paragraph (18) and inserting ‘‘(a) PURPOSE.—It is the purpose of this sec- such police or security department, including the following: tion— the nature, date, time, and general location of ‘‘(18) The institution will meet the require- ‘‘(1) to allow demonstration programs that are each crime and the disposition of the complaint, ments established pursuant to section 485(g).’’; strictly monitored by the Department of Edu- if known. and cation to test the quality and viability of ex- ‘‘(B) All entries that are required by this (6) by striking paragraph (21) and inserting panded distance education programs currently paragraph shall be open to public inspection the following: restricted under this Act; during normal business hours within two busi- ‘‘(21) The institution will meet the require- ‘‘(2) to provide for increased student access to ness days of the initial report being made to the ments established by the Secretary, appropriate higher education through distance education department, unless— State agencies, and accrediting agencies, pursu- programs; ‘‘(i) disclosure of such information is prohib- ant to part H of this title.’’. ‘‘(3) to help determine the most effective ited by law; or (b) AUDITS; FINANCIAL RESPONSIBILITY.—Sec- means of delivering quality education via dis- ‘‘(ii) the release of such information is likely tion 487(c) is amended— tance education course offerings; and to jeopardize an ongoing criminal investigation (1) in paragraph (1)(A)(i), by striking ‘‘State ‘‘(4) to help determine the appropriate level of or the safety of an individual, cause a suspect agencies’’ and everything that follows through Federal assistance for students enrolled in dis- to flee or evade detection, or result in the de- the semicolon and inserting ‘‘and appropriate tance education programs. struction of evidence. State agencies;’’; ‘‘(b) DEMONSTRATION PROGRAMS AUTHOR- (2) in paragraph (2), by striking ‘‘subpart 3’’ IZED.— Any information withheld under clause (ii) shall and inserting ‘‘subpart 2’’; be open to public inspection as soon as the dam- ‘‘(1) IN GENERAL.—The Secretary is authorized (3) in paragraph (4), by striking ‘‘, after con- to select institutions or a consortia of institu- age that is the basis for such withholding is no sultation’’ and everything that follows through longer likely to occur. tions for voluntary participation in a Distance ‘‘part H,’’; and Education Demonstration Program that pro- ‘‘(9) The Secretary shall provide technical as- (4) in paragraph (5), by striking ‘‘State re- vides participating institutions with the ability sistance in complying with the provisions of this view’’ and everything that follows through to offer distance education programs without re- section to an institution of higher education ‘‘part H’’ and inserting ‘‘appropriate State gard to the current restrictions in part F or G of who requests such assistance.’’. agencies’’. this title or part A of title I. (e) DATA REQUIRED.—Section 485(g) is amend- SEC. 469. QUALITY ASSURANCE AND REGU- ‘‘(2) EXEMPTIONS.—The Secretary is author- ed— LATORY SIMPLIFICATION. ized to exempt any institution or consortia par- (1) in paragraph (1), by adding at the end the Section 487A (20 U.S.C. 1094a) is amended to ticipating in a Distance Education Demonstra- following new subparagraphs: read as follows: tion Program from any of the requirements of ‘‘(I)(i) The total revenues, and the revenues ‘‘SEC. 487A. QUALITY ASSURANCE AND REGU- parts F or G of this title, or part A of title I, or LATORY SIMPLIFICATION PROGRAM. from football, men’s basketball, women’s basket- the regulations prescribed under such parts. ball, all other men’s sports combined and all ‘‘(a) IN GENERAL.—The Secretary is author- ‘‘(c) APPLICATION.—Each institution or con- ized to select institutions for voluntary partici- other women’s sports combined, derived by the sortia of institutions desiring to participate in a pation in a Regulatory Simplification Program institution from its intercollegiate athletics ac- demonstration program under this section shall that provides participating institutions with the tivities. submit an application to the Secretary at such opportunity to develop and implement an alter- ‘‘(ii) For the purpose of clause (i), revenues time, in such manner, and accompanied by such from intercollegiate athletics activities allocable native management program that— ‘‘(1) shall allow alternative methods of com- information as the Secretary may require. to a sport shall include (without limitation) gate ELECTION.—To the extent feasible, the plying with regulations issued with respect to ‘‘(d) S receipts, broadcast revenues, appearance guar- Secretary shall select a representative sample in- parts A through E and G of this title; antees and options, concessions, and advertis- stitutions for participation in the demonstration ing, but revenues such as student activities fees ‘‘(2) shall not modify or waive the application of any requirement or other provision of this program authorized under this section. In se- or alumni contributions not so allocable shall be lecting institutions for participation, the Sec- included in the calculation of total revenues Act; and ‘‘(3) may include a Quality Assurance Pro- retary shall take into consideration the institu- only. tion’s financial and administrative capability ‘‘(J)(i) The total expenses, and the expenses gram through which individual schools develop and implement their own comprehensive systems and the type of program or programs being of- attributable to football, men’s basketball, wom- fered via distance education course offerings. en’s basketball, all other men’s sports combined, to verify student financial aid application data, thereby enhancing program integrity within the The Secretary shall, in the exercise of his discre- and all other women’s sports combined, made by tion, determine the number of demonstration the institution for its intercollegiate athletics ac- student aid delivery system. ‘‘(b) SELECTION CRITERIA.—The criteria for se- programs to be allowed based on the number tivities. lecting institutions for participation in the Reg- and quality of applications received and the De- ‘‘(ii) For the purpose of clause (i) expenses for ulatory Simplification Program shall be based partment’s capacity to oversee and monitor each intercollegiate athletics activities allocable to a on criteria that include demonstrated institu- demonstration program. sport shall include (without limitation) grants- tional performance, as determined by the Sec- ‘‘(e) EVALUATION AND REPORT.— in-aid, salaries, travel, equipment, and supplies, retary, and shall take into consideration regu- ‘‘(1) EVALUATION.—The Secretary shall, on an but expenses such as general and administrative latory simplification goals, as determined by the annual basis, evaluate the demonstration pro- overhead not so allocable shall be included in Secretary. The selection criteria shall ensure the grams authorized under this section. Such eval- the calculation of total expenses only. participation of representatives of institutions of uations shall specifically review— ‘‘(K) A statement of any reduction that may higher education according to size, mission, and ‘‘(A) the quality of the programs being of- or is likely to occur during the ensuing 4 aca- geographical distribution. fered; demic years in the number of athletes that will ‘‘(c) REMOVAL FROM THE PROGRAM.—The Sec- ‘‘(B) issues related to student financial assist- be permitted to participate in any collegiate retary is authorized to determine— ance for distance education; and sport, or in the financial resources that the in- ‘‘(1) when an institution that is unable to ad- ‘‘(C) effective technologies for delivering dis- stitution will make available to any such sport, minister the Regulatory Simplification Program tance education course offerings. and the reasons for any such reduction.’’; and must be removed from such program, and ‘‘(2) POLICY ANALYSIS.—In addition, the Sec- (2) by striking paragraph (5). ‘‘(2) when institutions desiring to cease par- retary shall review current policies and identify SEC. 467. NATIONAL STUDENT LOAN DATA SYS- ticipation in such Program will be required to those policies which present impediments to the TEM. complete the current award year under the re- development and use of distance learning and Section 485B(a) (20 U.S.C. 1092b(a)) is amend- quirements of the Program. other nontraditional methods of expanding ac- ed by inserting before the period at the end of ‘‘(d) EXPERIMENTAL SITES.—The Secretary is cess to education. the third sentence the following: ‘‘no later than authorized to designate institutions selected for ‘‘(3) REPORT.—The Secretary shall report to one year after the date of enactment of the participation in the Regulatory Simplification the appropriate committees of Congress with re- Higher Education Amendments of 1997’’. Program as Experimental Sites. spect to— April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2567 ‘‘(A) the evaluations of the demonstration (B) by striking ‘‘Six members’’ in paragraph ‘‘(3) conduct the negotiations process in a programs authorized under this section; and (4) and inserting ‘‘Eight members’’; and timely manner in order that final regulations ‘‘(B) any proposed legislative changes de- (C) by adding at the end the following new may be issued by the Secretary within the 240- signed to enhance the use of distance edu- paragraph: day period described in section 431(g) of the cation.’’. ‘‘(6) No officer or full-time employee of the General Education Provisions Act, and any sub- SEC. 471. GARNISHMENT REQUIREMENTS. United States shall serve as members of the Ad- sequent revisions to regulations under this title (a) MAXIMUM PERCENTAGE.—Section visory Committee.’’; may be issued in accordance with the master 488A(a)(1) (20 U.S.C. 1095a(a)(1)) is amended by (5) by striking subsection (g) and inserting the calendar provisions of section 482 of this title; striking ‘‘10 percent’’ and inserting ‘‘15 per- following: and cent’’. ‘‘(g) COMPENSATION AND EXPENSES.—Members ‘‘(4) prepare a transcript of the negotiated (b) NO ATTACHMENT OF STUDENT ASSIST- of the Advisory Committee may each receive re- rulemaking proceedings that shall be available ANCE.—Section 488A is further amended— imbursement for travel expenses incident to at- to the public prior to the issuance of any final (1) by redesignating subsection (d) as sub- tending Advisory Committee meetings, including regulations. section (e); and per diem in lieu of subsistence, as authorized by ‘‘(c) FEDERAL ADVISORY COMMITTEE ACT.— (2) by inserting after subsection (c) the follow- section 5703 of title 5, United States Code, for The Federal Advisory Committee Act shall not ing new subsection: persons in the Government service employed apply to activities carried out under this sec- ‘‘(d) NO ATTACHMENT OF STUDENT ASSIST- intermittently.’’; tion.’’. ANCE.—Except as authorized in this section, not- (6) in subsection (h)(1), by striking ‘‘may be PART H—PROGRAM INTEGRITY withstanding any other provision of Federal or necessary by the Chairman without regard to’’ State law, no grant, loan, or work assistance and inserting ‘‘may be deemed necessary by the SEC. 476. STATE POSTSECONDARY REVIEW PRO- GRAM. awarded under this title, or property traceable Chairman without regard to personnel ceilings (a) AMENDMENTS.—Part H of title IV is to such assistance, shall be subject to garnish- or’’; amended— ment or attachment in order to satisfy any debt (7) in subsection (i), by striking ‘‘$750,000’’ (1) in the heading of the part, by striking owed by the student awarded such assistance, and inserting ‘‘$850,000’’; (8) by striking subsection (j) and inserting the ‘‘TRIAD’’; other than a debt owed to the Secretary and (2) by striking subpart 1 (20 U.S.C. 1099a following: arising under this title.’’. through 1099a–3); and ‘‘(j) SPECIAL ANALYSES AND ACTIVITIES.—The SEC. 472. ADMINISTRATIVE SUBPOENA AUTHOR- (3) by redesignating subparts 2 and 3 as sub- ITY. committee shall— ‘‘(1) monitor and evaluate the modernization parts 1 and 2, respectively. Part G of title IV of the Act is further amend- (b) CONFORMING AMENDMENTS.—Section 496 of student financial aid systems and delivery ed by inserting immediately after section 490 (20 (20 U.S.C. 1099b) is amended by striking ‘‘sub- processes; U.S.C. 1097) the following new section: part 3’’ each place it appears in subsections (j) ‘‘SEC. 490A. ADMINISTRATIVE SUBPOENAS. ‘‘(2) monitor and evaluate the implementation of a performance-based organization within the and (k) and inserting ‘‘subpart 2’’. ‘‘(a) AUTHORITY.—To assist the Secretary in SEC. 477. ACCREDITING AGENCY RECOGNITION. the conduct of investigations of possible viola- Department of Education and report to Con- gress, on not less than an annual basis, includ- (a) RECOGNITION.— tions of the provisions of this title, the Secretary (1) The heading of subpart 1 of part H (as re- is authorized to require by subpoena the produc- ing recommendations for improvements; and ‘‘(3) assess the adequacy of current methods designated by section 476(a)(3)) is amended by tion of information, documents, reports, an- for disseminating information about programs striking ‘‘APPROVAL’’ and inserting ‘‘REC- swers, records, accounts, papers, and other doc- under this title and recommend improvements, OGNITION’’. umentary evidence pertaining to participation as appropriate, regarding early needs assess- (2) The heading of section 496 is amended by in any program under this title. The production ment and information for first-year high school striking ‘‘APPROVAL’’ and inserting ‘‘REC- of any such records may be required from any students.’’; OGNITION’’. place in a State. (9) in subsection (k), by striking ‘‘1998’’ and (b) STANDARDS.—Section 496(a) is amended— ‘‘(b) ENFORCEMENT.—In case of contumacy by, (1) by striking ‘‘STANDARDS’’ and inserting or refusal to obey a subpoena issued to, any per- inserting ‘‘2004’’; and (10) by striking subsection (l). ‘‘CRITERIA’’; son, the Secretary may request the Attorney (2) by striking ‘‘standards’’ each place it ap- General to invoke the aid of any court of the SEC. 474. MEETINGS AND NEGOTIATED RULE- MAKING. pears and inserting ‘‘criteria’’; United States where such person resides or (3) in paragraph (5)— Section 492 (20 U.S.C. 1098a) is amended to transacts business for a court order for the en- (A) by striking ‘‘of accreditation’’ and insert- read as follows: forcement of this section.’’. ing ‘‘for accreditation’’; ‘‘SEC. 492. NEGOTIATED RULEMAKING. SEC. 473. ADVISORY COMMITTEE ON STUDENT FI- (B) by inserting ‘‘the quality (including the NANCIAL ASSISTANCE. ‘‘(a) IN GENERAL.— quality of distance learning programs or Section 491 (20 U.S.C. 1098) is amended— ‘‘(1) REGULATION DEVELOPMENT.—In develop- courses) of’’ before ‘‘the institution’s’’; (1) in subsection (b)— ing regulations and revisions thereof under this (C) in subparagraph (G), by striking ‘‘pro- (A) by inserting ‘‘staffing levels,’’ after ‘‘allo- title, the Secretary shall obtain the advice and gram length and tuition and fees in relation to cations and expenditures,’’ the first place it ap- recommendations of individuals and representa- the subject matters taught’’ and inserting pears; and tives of the groups involved in student financial ‘‘measures of program length’’; (B) by striking the fourth and fifth sentences assistance programs under this title, such as (D) by striking subparagraph (J); and inserting the following: ‘‘Reports, publica- students, legal assistance organizations that (E) in subparagraph (L), by inserting ‘‘the tions, and other documents, including docu- represent students, institutions of higher edu- most recent student loan default rate data pro- ments in electronic form, shall not be subject to cation, guaranty agencies, lenders, secondary vided by the Secretary and’’ after ‘‘including’’; review by the Secretary.’’; markets, loan servicers, guaranty agency (F) by striking ‘‘and’’ at the end of subpara- (2) in subsection (c)(1)— servicers, and collection agencies. graph (K); (A) by striking ‘‘11 members’’ and inserting ‘‘(2) INPUT.—Such advice and recommenda- (G) by inserting ‘‘and’’ after the semicolon at ‘‘15 members’’; and tions may be obtained through such mechanisms the end of subparagraph (L); (B) by striking ‘‘3 members’’ each place it ap- as national meetings and electronic exchanges (H) by redesignating subparagraphs (K) and pears in subparagraphs (A) and (B) and insert- of information. (L) as subparagraphs (J) and (K), respectively; ing ‘‘5 members’’; ‘‘(b) PROPOSED REGULATIONS.—After obtain- (I) by inserting after subparagraph (K) (as so (3) in subsection (c)(2), by striking ‘‘7 mem- ing such advice and recommendations, and prior redesignated) the following new subparagraph: bers’’ and inserting ‘‘11 members’’; to publishing any proposed regulations and re- ‘‘(L) refund policy;’’; and (4) in subsection (e)— visions thereof under this title in the Federal (J) by striking ‘‘(J), and (L)’’ and inserting (A) by striking everything after ‘‘except that,’’ Register, the Secretary shall prepare draft regu- ‘‘(K) and (L)’’; in paragraph (1) and inserting the following: lations and submit such regulations to a nego- (4) in paragraph (7), by striking ‘‘State post- ‘‘within 90 days after the date of enactment of tiated rulemaking process. In establishing the secondary review entity’’ and inserting ‘‘State the Higher Education Amendments of 1998, 2 ad- negotiated rulemaking process under this sec- licensing or authorizing agency’’; and ditional members shall be appointed by the tion, the Secretary shall— (5) in paragraph (8), by striking ‘‘State post- President pro tempore of the Senate (one upon ‘‘(1) follow the procedural requirements used secondary’’ and everything that follows through the recommendation of the Majority Leader and in implementing section 1601(b) of the Elemen- ‘‘is located’’ and inserting ‘‘State licensing or one upon the recommendation of the Minority tary and Secondary Education Act of 1965; authorizing agency’’. Leader) and 2 additional members shall be ap- ‘‘(2) select participants in the negotiations (c) OPERATING PROCEDURES.—Section 496(c) is pointed by the Speaker of the House (one upon process from individuals and groups participat- amended— the recommendation of the Majority Leader and ing in the exchanges described in subsection (1) by striking ‘‘approved by the Secretary’’ one upon the recommendation of the Minority (a)(1), including both representatives of such and inserting ‘‘recognized by the Secretary’’; Leader). Of the additional members— groups from the District of Columbia, and in- (2) in paragraph (1), by striking ‘‘(at least’’ ‘‘(A) 2 shall be appointed for a term of 1 year; dustry participants, and to the extent possible, and everything that follows through ‘‘unan- ‘‘(B) 1 shall be appointed for a term of 2 the Secretary shall select individuals reflecting nounced),’’ and inserting ‘‘(which may include years; and the diversity in the industry, representing both unannounced site visits)’’; and ‘‘(C) 1 shall be appointed for a term of 3 large and small participants, as well as individ- (3) in paragraph (3), by inserting before the years.’’; uals serving local areas and national markets; semicolon at the end the following: ‘‘, except H2568 CONGRESSIONAL RECORD — HOUSE April 29, 1998

that new sites offered through telecommuni- (3) by inserting after subparagraph (A) the ‘‘(b) SPECIAL ADMINISTRATIVE RULES.—(1) In cations for programs previously included in the following new subparagraphs: carrying out paragraphs (1) and (2) of sub- scope of accreditation approval need not be sub- ‘‘(B) written procedures for, or written infor- section (a), the Secretary shall— ject to such on-site visits’’. mation relating to, each office with respect to, ‘‘(A) establish guidelines designed to ensure (d) CONFORMING AMENDMENTS.—Section 496 is the approval, disbursement, and delivery of stu- uniformity of practice in the conduct of program further amended— dent financial assistance under this title; reviews of institutions; and (1) in subsection (d)— ‘‘(C)(i) a division of functions for authorizing ‘‘(B) inform the appropriate State agency and (A) by striking ‘‘APPROVAL’’ in the heading of payments of student financial assistance under accrediting agency or association whenever tak- such subsection and inserting ‘‘RECOGNITION’’; this title and the disbursement or delivery of ing action against an institution under this sec- and such assistance, so that no office at the institu- tion, section 498, or section 432. (B) by striking ‘‘approved’’ and inserting tion has responsibility for both functions; and ‘‘(2) The Secretary shall review the regula- ‘‘recognized’’; ‘‘(ii) an adequate system of checks and bal- tions of the Department and the application of (2) in subsection (f), by striking ‘‘approved’’ ances for internal control at the institution with such regulations to ensure the uniformity of in- and inserting ‘‘recognized’’; respect to student financial assistance under terpretation and application of the regulations. (3) in subsection (g)— this title; and’’. In conducting such review, the Secretary shall (A) by striking ‘‘STANDARDS’’ and inserting (d) ACTIONS ON APPLICATIONS.—Section 498(f) consult with relevant representatives of institu- RITERIA’’; and ‘‘C is amended— tions participating in the programs authorized (B) by striking ‘‘standards’’ and inserting (1) by striking ‘‘shall conduct’’ and inserting by this title.’’. ‘‘criteria’’; The CHAIRMAN. Are there amend- (4) in subsection (k)(2), by striking ‘‘stand- ‘‘may conduct’’; ards’’ and inserting ‘‘criteria’’; (2) by striking ‘‘may establish’’ and inserting ments to title IV? (5) in subsection (l)— ‘‘shall establish’’; AMENDMENT NO. 53 OFFERED BY MR. PETRI (3) by striking ‘‘may coordinate’’ and insert- (A) by striking ‘‘APPROVAL’’ in the heading of Mr. PETRI. Mr. Chairman, I offer an such subsection and inserting ‘‘RECOGNITION’’; ing ‘‘shall, to the extent practicable, coordi- nate’’; and amendment. (B) by striking ‘‘the standards’’ each place it The CHAIRMAN. The Clerk will des- appears and inserting ‘‘its standards’’; and (4) by adding at the end the following new (C) by striking ‘‘approval’’ and inserting ‘‘rec- sentence: ‘‘The Secretary may exempt from the ignate the amendment. ognition’’; and site visit requirement any institution that is par- The text of the amendment is as fol- (6) in subsection (n)— ticipating in the Quality Assurance Program es- lows: (A) by striking ‘‘standards’’ each place it ap- tablished under section 487A at the time such Amendment No. 53 offered by Mr. PETRI: pears and inserting ‘‘criteria’’; site visit would be required under this sub- Page 192, after line 10, insert the following (B) in paragraph (3)— section.’’. new section (and conform the table of con- (i) by striking ‘‘approval or disapproval’’ and (e) TIME LIMITATIONS.—Section 498(g) is tents accordingly): inserting ‘‘recognition or denial of recognition’’; amended to read as follows: SEC. 430. MARKET-BASED DETERMINATIONS OF and ‘‘(g) TIME LIMITATIONS.—(1) After the expira- INTEREST SUBSIDIES. (ii) by striking ‘‘approval process’’ and insert- tion of the certification of any institution or (a) AMENDMENT.—Section 438 (20 U.S.C. ing ‘‘recognition process’’; and upon request for initial certification from an in- 1087-1) is amended by adding at the end the (C) by striking paragraph (4) and inserting stitution not previously certified, the Secretary following new subsection: the following: may certify the eligibility for the purposes of ‘‘(g) MARKET-BASED DETERMINATIONS OF IN- ‘‘(4) The Secretary shall maintain sufficient any program authorized under this title of each TEREST SUBSIDIES.— documentation to support the conclusions such institution for a period not to exceed 6 ‘‘(1) APPLICABILITY.—Notwithstanding the reached in the recognition process, and, if the years. preceding provisions of this section, no spe- Secretary does not recognize any accreditation ‘‘(2) The Secretary shall notify each institu- cial allowance or other payment shall be agency or association, shall make publicly tion of the expiration of its eligibility no later paid under this section with respect to any available the reason for denying recognition, in- than six months prior to such expiration.’’. loan disbursed on or after July 1, 1999, except cluding reference to the specific criteria under (f) CONFORMING AMENDMENT.—Section as provided pursuant to this subsection. this section which have not been fulfilled.’’. 498(h)(2) is amended by striking ‘‘approval’’ and ‘‘(2) USE OF AUCTIONS TO APPORTION LENDING SEC. 478. ELIGIBILITY AND CERTIFICATION PRO- inserting ‘‘recognition’’. AUTHORITY.— CEDURES. (g) PROVISIONAL CERTIFICATION.—Section ‘‘(A) AUCTIONS REQUIRED.—The Secretary (a) SINGLE APPLICATION FORM.—Section 498(i) is amended by adding at the end the fol- shall conduct an auction in accordance with 498(b)(1) (20 U.S.C. 1099c(b)(1)) is amended by lowing new paragraph: paragraph (3) to allocate the authority to striking ‘‘accreditation, and capability’’ and in- ‘‘(4)(A) The Secretary may provisionally cer- make loans under this part among eligible serting ‘‘accreditation, financial responsibility, tify an institution seeking approval of a change lenders for any academic year. The Sec- and administrative capacity’’. in ownership based on the preliminary review by retary shall estimate the amount of lending (b) FINANCIAL RESPONSIBILITY STANDARDS.— the Secretary of a materially complete applica- authority that will be required by eligible Section 498(c) is amended— tion that is received by the Secretary within 10 students for such an academic year, and (1) in paragraph (1), in the matter preceding business days of the transaction for which the shall by auction allocate such amount, plus subparagraph (A), by striking ‘‘is able’’ and in- approval is sought. a reasonable margin for unexpected loan de- serting ‘‘has sufficient resources to ensure ‘‘(B) A provisional certification under this mand. against the precipitous closure of the institution paragraph shall expire no later than the end of ‘‘(B) LENDING AUTHORITY REQUIRED.—A and is able’’; the month following the month in which the lender may not make a loan under this part (2) in paragraph (2)— transaction occurred, except that if the Sec- that is disbursed on or after July 1, 1999, ex- (A) in the first sentence, by striking ‘‘operat- retary has not issued a decision on the applica- ing losses, net worth, asset-to-liabilities ratios, cept pursuant to an allocation of lending au- tion for the change of ownership within that pe- thority pursuant to this paragraph. or operating fund deficits’’ and inserting ‘‘to ra- riod, the Secretary may continue such provi- tios that demonstrate financial responsibility,’’; ‘‘(C) TRANSFERABILITY OF LENDING AUTHOR- sional certification on a month-to-month basis ITY.—An eligible lender may transfer any (B) in the second sentence, by inserting ‘‘, until such decision has been issued.’’. public,’’ after ‘‘for profit’’; and lending authority acquired pursuant to this (C) by inserting before the period at the end SEC. 479. PROGRAM REVIEW AND DATA. subsection to another eligible lender upon the following: ‘‘, and develop an appropriate (a) GENERAL AUTHORITY.—Section 498A(a) (20 such terms as may be agreed upon between and cost effective process under this subpart U.S.C. 1099c–1(a)) is amended— such lenders, except that the acquiring lend- that does not duplicate other reporting require- (1) in paragraph (2)— er may not extend loans pursuant to such au- ments for assessing and reviewing financial re- (A) by striking ‘‘may give’’ and inserting thority except after notice to the Secretary sponsibility’’; and ‘‘shall give’’; in such form and manner as the Secretary (3) in paragraph (4)— (B) by inserting before the semicolon at the may require by regulation. (A) in the first sentence, by striking ‘‘ratio of end of subparagraph (C) the following: ‘‘, that ‘‘(D) EXERCISE OF LENDING AUTHORITY.—The current assets to current liabilities’’ and insert- are not accounted for by changes in those pro- Secretary shall, by regulation, provide for ing ‘‘criteria’’; and grams’’; verification that a lender is not making (B) in subparagraph (C), by striking ‘‘current (C) in subparagraph (D), by striking ‘‘the ap- loans under this part in excess of the operating ratio requirement’’ and inserting ‘‘cri- propriate’’ and everything that follows through amounts of lending authority obtained in ac- teria imposed by the Secretary pursuant to ‘‘of this part’’ and inserting ‘‘the State licensing cordance with this paragraph. Such regula- paragraph (2)’’. or authorizing agency’’; tions shall provide that any lender who ac- (c) ADMINISTRATIVE CAPACITY.—Section (D) by striking subparagraph (F); and quires, directly or pursuant to subparagraph 498(d)(1) is amended— (E) by redesignating subparagraph (G) as sub- (C), lending authority that was obtained at (1) in subparagraph (A), by striking ‘‘student paragraph (F); and auction pursuant to two or more bids of dif- aid programs; and’’ and inserting ‘‘student fi- (2) in paragraph (3)(A), by inserting ‘‘rel- ferent amounts shall be deemed to exercise nancial assistance under this title;’’; evant’’ after ‘‘all’’. such authority in descending order based on (2) by redesignating subparagraph (B) as sub- (b) SPECIAL ADMINISTRATIVE RULES.—Section the amounts of such bids. paragraph (D); and 498A(b) is amended to read as follows: ‘‘(3) CONDUCT OF AUCTION.— April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2569 ‘‘(A) IN GENERAL.—The Secretary shall al- ‘‘(5) AUTHORITY TO PREPARE FOR PRO- will drive down by a substantial locate the amount of lending authority de- GRAM.—Notwithstanding paragraph (1), the amount the cost of these loans to the termined under paragraph (2)(A) among eli- Secretary may, before July 1, 1999— U.S. Government. gible lenders submitting bids in descending ‘‘(A) prescribe regulations to carry out this I urge all my colleagues to support subsection; and order by the unit price bid, but permitting this amendment. each bidding lender to acquire such author- ‘‘(B) expend funds appropriated pursuant to Mr. MCKEON. Mr. Chairman, will the ity at the unit price bid by the next lower this part to carry out activities necessary to ranking bid, except that the Secretary may the implementation of the programs author- gentleman yield? establish by regulation a different procedure ized by this subsection.’’. Mr. PETRI. I yield to the gentleman for the conduct of the auction if the Sec- (b) CONFORMING AMENDMENT.—Section from California. retary determines that such procedure will 428(j)(1) (20 U.S.C. 1078(j)(1)) is amended by Mr. MCKEON. Mr. Chairman, I know secure more receipts for the United States. adding at the end the following new sen- the gentleman from Wisconsin has The Secretary shall not permit any lender to tence: ‘‘The availability of loans under this worked very hard for many years in ef- subsection shall be coordinated in accord- acquire more than one-third of the amount forts to improve the student loan pro- of the lending authority offered at any auc- ance with regulations prescribed by the Sec- retary under section 438(g)(5).’’. gram. I commend him for his effort on tion conducted under this subsection, but a his amendment. In fact, I agree with lender shall not be prohibited from acquiring Mr. PETRI. Mr. Chairman, this amendment which I am offering along its general thrust. more than such amount pursuant to para- The gentleman is correct that up to graph (2)(C). with the gentleman from New Jersey now we have tried to figure out how ‘‘(B) BIDS GREATER THAN ZERO.—Any lender (Mr. ANDREWS) would institute an auc- much to pay the lenders for providing whose bid is accepted pursuant to subpara- tion process to allocate to private lend- student loans in a political negotiation graph (A) shall, if such bid is made at a unit ers the rights to make federally-guar- and we in Congress really have no way price exceeding zero, promptly pay to the anteed student loans. Secretary an amount equal to (i) the unit Under our amendment, private lend- of knowing what the right price is. It price, multiplied by (ii) the amount of lend- ers would submit bids to the Secretary would be much better if we had market ing authority allocated to such lender. A process to determine that. lender making such a payment shall have no in a yearly auction somewhat similar to the auctions of Treasury securities. I am interested in working in that di- claim to a refund or remuneration based on rection. That is why we have a provi- the lender making loans in an amount that In this way, a market mechanism sion in the bill to study this whole is less than the amount of lending authority would be used to determine the pay- obtained. ments required by banks to provide the issue. In fact, I understand there also is ‘‘(C) BIDS LESS THAN ZERO.—The Secretary Nation’s students with loans at reason- interest in this subject in the other shall pay to any lender whose bid is accepted able interest rates. body, and it could even come up in the pursuant to subparagraph (A), if such bid is The amendment would end the recur- conference on this bill. made at a unit price that is less than zero, ring battle between student groups and However, I believe that the gentle- an amount equal to— man’s amendment is simply too much, ‘‘(i) the amount by which the unit price is lenders over the industry on student loans, which results in the price of pri- too fast. It was not offered in commit- less than zero, multiplied by tee, and we simply are not ready at ‘‘(ii) the amount of lending authority that vate sector services being set by politi- this point to adopt one particular full- the lender demonstrates, in accordance with cal negotiation without regard to the regulations prescribed by the Secretary, has actual cost of the services. blown market process from among the exercised by making and disbursing loans The amendment also has the poten- many alternatives in the manner the under this part. tial to save the American taxpayers gentleman’s amendment provides. ‘‘(D) CONTRACTUAL RIGHT OF HOLDERS TO billions of dollars through competition Therefore, I would urge the gen- SPECIAL ALLOWANCE.—Any lender whose bid for this profitable business. Up to now, tleman to withdraw his amendment, is accepted pursuant to subparagraph (A), if with the exceptions of in-school inter- and I will be happy to work with him such bid is made at a unit price that is less to move toward incorporating a mar- than zero, shall be deemed to have a contrac- est and the overall interest cap, the banks have always received the same ket mechanism in this program in the tual right against the United States, to re- future. ceive the payment required by subparagraph interest the students paid on student (C). Such payment shall be made promptly loans. Mr. KILDEE. Mr. Chairman, will the and without administrative delay after re- This bill breaks that link for the first gentleman yield? ceipt of an accurate and complete request for time. Under this bill, the banks will re- Mr. PETRI. I yield to the gentleman payment, pursuant to procedures established ceive one-half percent more interest from Michigan. by regulations promulgated under this sub- than the borrowers pay, with the Mr. KILDEE. Mr. Chairman, I share section. American taxpayers picking up the dif- the views of the chairman, the gen- ‘‘(E) PENALTY FOR LATE PAYMENT.—If a tleman from California (Mr. MCKEON). I payment required by subparagraphs (C) and ference on every loan for as long as it is outstanding. That will be an admin- would be very happy to work with the (D) has not been made within 30 days after gentleman to see if we can resolve this the Secretary has received an accurate, istrative monster as well as a drain on in conference, and if the gentleman timely, and complete request for payment the Treasury. thereof, the amount payable to such lender Our amendment would keep the stu- would withdraw, the three of us could shall be increased by an amount equal to the dents’ interest rates the same as they work together to see if we can resolve daily interest accruing on the payments due are in the bill. However, the banks, de- this. the lender. For such purpose, the daily inter- pending on whether winning bids were Mr. ANDREWS. Mr. Chairman, will est shall be the daily equivalent of the appli- positive or negative, would either the gentleman yield? cable rate of interest determined under sec- make a one-time payment for the right Mr. PETRI. I yield to the gentleman tion 427A(a)(1). from New Jersey. ‘‘(4) MEASURES TO FACILITATE EXERCISE OF to make blocks of loans on those terms or would receive a one-time payment Mr. ANDREWS. Mr. Chairman, I LENDING AUTHORITY.— thank the gentleman; and I was proud ‘‘(A) INFORMATION.—The Secretary shall from the government to make it worth provide for the establishment of facilities for their while to make these loans. to coauthor this amendment with my friend from Wisconsin, who I would the communication of information that per- b mits eligible borrowers to be informed of the 2145 like to acknowledge as, I think, the identity of, and means to contact, lenders In either case, the process would be most knowledgeable person in the holding unexercised lending authority pursu- simpler and use a market-based price House on the issue of student loans. ant to this subsection. discovery mechanism. I am also pleased that the sub- ‘‘(B) COORDINATION.—The Secretary shall, If the banks are right that these committee chairman and the ranking by regulation, coordinate the availability of loans are unprofitable even under the member have agreed they will continue loans pursuant to section 428(j) to the extent terms provided by the bill, this process to discuss with us and negotiate with necessary— ‘‘(i) to permit lenders to exercise the lend- provides them an opportunity to get us this issue beyond conference and up ing authority secured pursuant to this sub- better terms. I personally do not be- through conference. I happen to think section; and lieve for a minute that that would hap- that the debate of the last number of ‘‘(ii) to ensure that eligible borrowers ob- pen, however. I am convinced that the months proves the validity of the un- tain loans under this part. competition produced by this approach derlying idea here. H2570 CONGRESSIONAL RECORD — HOUSE April 29, 1998

Some of us believe that the subsidy demic year, but at least 2⁄3 of such an aca- This amendment would apply only to unsub- of the guaranteed student loan pro- demic year; and sidized loans for students at four-year, degree- gram is too high. Others believe it is ‘‘(iii) $2,700 if such student is enrolled in a granting institutions, and would not change the 2 too low. I think that what this amend- program whose length is less than ⁄3, but at total amount students may borrow in the fed- least 1⁄3, of such an academic year; ment says is that it is not a judgment ‘‘(D) in the case of such a student who is a eral programs under current lawÐtherefore, that we should make in this body as to graduate or professional student enrolled at students will not be incurring additional debt. whether the subsidy rate is too high or an eligible institution, an amount not to ex- The amendment has three parts, which too low. Instead, we should turn to the ceed the student’s estimated cost of attend- apply respectively to dependent undergradu- marketplace and let interested lenders ance (as determined under section 472), less ate students, independent undergraduates, step forward and bid for the right to re- the sum of— and graduate students. ceive these government guaranteed ‘‘(i) any loan for which the student is eligi- Dependent UndergraduatesÐCurrently de- franchises. ble under section 428; and pendent undergraduates may borrow unsub- This is not a new idea. It is an idea ‘‘(ii) an estimate of any financial assist- sidized loans only under limited cir- ance reasonably available to such student.’’. that, frankly, works in the FHA mort- cumstances, forcing them into private loan (2) DEPENDENT STUDENTS AMENDMENT.— gage context in much larger quantities Section 428H(d) is amended— programs with uncapped interest rates. This of dollars with great success. (A) by redesignating paragraph (3) as para- amendment would permit full-time dependent The CHAIRMAN. The time of the graph (4); and undergraduates to borrow up to $1500 a year gentleman from Wisconsin (Mr. PETRI) (B) by inserting after paragraph (2) the fol- in unsubsidized loans in addition to the sub- has expired. lowing new paragraph: sidized loans they may borrow under current (On request of Mr. ANDREWS, and by ‘‘(3) ANNUAL LIMITS FOR DEPENDENT STU- lawÐbut the combined total of subsidized and unanimous consent, Mr. PETRI was al- DENTS.—Notwithstanding paragraph (2), in unsubsidized borrowing could not exceed the lowed to proceed for 1 additional the case of a dependent student who is en- existing undergraduate maximum of $2300. minute.) rolled in a program leading to the bacca- Independent UndergraduatesÐCurrently Mr. ANDREWS. If the gentleman will laureate degree whose length is at least 1 independent undergraduates are limited to academic year (as determined under section continue to yield, Mr. Chairman, I 481), the maximum annual amount of loans $4000 in unsubsidized maximums for their would like to commend my coauthor of under this section such a student may bor- freshman and sophomore years, and $5000 this amendment. I also commend the row in any academic year or its equivalent for their junior and senior years, forcing them subcommittee chairman and ranking or in any period of 7 consecutive months, into private loan programs to make up the dif- member for their willingness to work whichever is longer, shall be the amount de- ference. Independent undergraduates would together with us on this. termined under paragraph (1) plus $1,500.’’ be permitted to borrow up to $7200 per year I believe that the right answer to Mr. ROEMER. Mr. Chairman, as we in unsubsidized loans, which again keeps total this conundrum, as to whether it is too moved into hearings on this very im- borrowing under the existing cumulative limits. much or too little, is to turn to the portant bipartisan higher education Graduate StudentsÐUnder current law, marketplace and let the marketplace bill, what we heard both in Washing- graduate students may borrow $8500 in sub- answer that question for us. ton, D.C., and in field hearings in Indi- sidized loans and $10,000 in unsubsidized Mr. PETRI. Reclaiming my time, Mr. ana and across the country was the re- loans per year, meaning that amounts over Chairman, I thank my colleague. And sounding call for more flexibility, not those limits must be borrowed from private in light of the interest from Senator more mandates upon our institutions programs. Graduate students would be per- KENNEDY and others in the other body, of higher education, and trying to do mitted to borrow unsubsidized loans up to the and in light of the interest on both things to reduce the cost and the debt cost of attendance minus subsidized loans sides of the aisle in this body in pursu- to students as they come out of col- and other aid, provided that there is no ing this approach and the study that is lege. change to the cumulative amounts graduate in the bill. This amendment, the loan flexibility students are permitted to borrow under current Mr. Chairman, I would ask unani- amendment, achieves both of those ob- law. mous consent to withdraw my amend- jectives. It tries to provide more flexi- Mr. GOODLING. Mr. Chairman, I ment at this time. bility to our schools and to our stu- move to strike the last word. The CHAIRMAN. Is there objection dents. It also enhances the ability to We are willing to accept the amend- to the request of the gentleman from combine the loan programs and give ment with the understanding that we Wisconsin? the students a reduced rate. This will have a rollcall vote on it; and so if There was no objection. amendment would retain the aggregate we find out tomorrow that it does cost The CHAIRMAN. The amendment is loan limits while giving students great- money, then, of course, we would have withdrawn. er borrowing flexibility under the Fed- to have that vote. But we would accept Are there further amendments to eral student loan programs. it tonight with the understanding that title IV? In the subsidized loan program, stu- I will call for a rollcall vote. AMENDMENT NO. 54 OFFERED BY MR. ROEMER dent lending has both aggregate and Mr. ROEMER. Mr. Chairman, will the Mr. ROEMER. Mr. Chairman, I offer annual loan limits. The annual loan gentleman yield? Amendment No. 54. limit forces many students into the Mr. GOODLING. I yield to the gen- The CHAIRMAN. The Clerk will des- more expensive private loan market. tleman from Indiana. ignate the amendment. This amendment would apply only to Mr. ROEMER. Mr. Chairman, I wish The text of the amendment is as fol- unsubsidized loans for students at 4 to, first of all, I want to compliment lows: year degree granting institutions and the chairman on his willingness when I Amendment No. 54 offered by Mr. ROEMER: would not change the total amount offered this amendment in committee Page 172, after line 22, insert the following students may borrow in the Federal to continue to work with me and my new subsection (and redesignate the succeed- programs under current law. Therefore, staff to try to perfect this amendment, ing subsections accordingly): to make sure that we attain the goals (c) ADDITIONAL ANNUAL LOAN LIMIT FLEXI- students will not be incurring addi- of flexibility and reduce costs to the BILITY. tional debt. (1) IN GENERAL.—Section 428H(d)(2) is We have tried to work an agreement students and, therefore, reduced debt amended— out with the Democrat and Republican to the students. We have worked with (A) by striking subparagraph (C); and side on this amendment from the full the gentleman, and I want to com- (B) by inserting after subparagraph (B) the committee. pliment the gentleman and his staff for following new subparagraphs: This amendment would retain the aggregate working through those issues. ‘‘(C) notwithstanding subparagraph (A) and loan limits, while giving students greater bor- We are hopeful that this will not be (B), in the case of such a student who is pur- rowing flexibility under the federal student loan costed by CBO. We are also hopeful suing a program of study at an eligible insti- that we will not have a vote on this tution leading to the baccalaureate degree— programs. ‘‘(i) $7,200 if such student is enrolled in a In the subsidized loan program, student and that the gentleman will accept it program whose length is at least 1 academic lending has both aggregate and annual loan and that we may not have a rollcall year (as determined under section 481); limits. The annual loan limits force many stu- vote. ‘‘(ii) $4,500 if such student is enrolled in a dents into the more expensive private loan We also would prefer, if we could, in program whose length is less than 1 aca- market. the morning, once we get CBO to score April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2571 it, if in fact there is a way that we can State resident carrying the same academic Act of 1964 and does not discriminate on the continue to have the gentleman sup- workload as the student, with the same num- basis of race. port this amendment and further per- ber of dependents as the student, and resid- ‘‘(4) PUBLIC SAFETY OFFICER.—The term fect it in conference, we would main- ing in the same type of housing as the stu- ‘public safety officer’ means a person serving dent. a public agency of a State or of a unit of gen- tain that flexibility as well. ‘‘(2) The actual cost of attendance (as de- eral local government, with or without com- Mr. GOODLING. Mr. Chairman, re- fined in section 472) of such student. pensation, as— claiming my time, we would be happy ‘‘(c) AWARD PERIOD.—The duration of each ‘‘(A) a law enforcement officer, including a to continue to work as we go into con- award under this chapter for a postsecondary corrections or a court officer engaged in— ference. It is just, I think, necessary to student, shall be the lesser of— ‘‘(i) apprehending or attempting to appre- say that we would have a rollcall vote ‘‘(1) the time actually required by the stu- hend of any person— even though we would accept it, to see dent to complete a course of study and ob- ‘‘(I) for the commission of a criminal act; tain a diploma; and whether or not there is a cost involved. or ‘‘(2) 6 years in the case of a student en- ‘‘(II) who at the time was sought as a ma- Mr. ROEMER. Mr. Chairman, if the gaged in undergraduate studies and 3 years terial witness in a criminal proceeding; or gentleman will continue to yield, we in the case of a student engaged in post- ‘‘(ii) protecting or guarding a person held would be happy to work with the chair- graduate studies. for the commission of a criminal act, or held man. We appreciate all his expertise ‘‘(d) NOTIFICATION.—The Secretary shall as a material witness in connection with a and help up to this point, and I am notify the recipient and the eligible institu- criminal act; or happy with the Chairman’s acceptance tion of the applicant’s selection for receipt ‘‘(iii) lawfully preventing of, or lawfully of an award under this chapter, the condi- attempting to prevent the commission of, a of the amendment. tions pertaining to award eligibility and con- The CHAIRMAN. The question is on criminal act or an apparent criminal act in tinuance. the performance of his official duty; or ‘‘(e) FISCAL AGENT.—The Secretary shall, if the amendment offered by the gen- ‘‘(B) a firefighter. practicable, use the eligible institution as tleman from Indiana (Mr. ROEMER). ‘‘(5) SURVIVING SPOUSE.—The term ‘surviv- fiscal agent for payment of an award. The question was taken; and the ing spouse’ means the legally married hus- Chairman announced that the ayes ap- ‘‘SEC. 411B. ADDITIONAL AWARD REQUIREMENTS. band or wife of a public safety officer at the ‘‘A student awarded a scholarship grant time of the officer’s death. peared to have it. under this chapter, as a condition for initial ‘‘(6) UNIT OF GENERAL LOCAL GOVERNMENT.— Mr. GOODLING. Mr. Chairman, I de- receipt of such award and periodically there- The term ‘unit of general local government’ mand a recorded vote. after as a condition for its continuation, The CHAIRMAN. Pursuant to House shall demonstrate to the satisfaction of the means any city, county, township, town, bor- Secretary that the student is— ough, parish, village, or any other general Resolution 411, further proceedings on purpose subdivision of a State, or any Indian the amendment offered by the gen- ‘‘(1) maintaining satisfactory progress in the course of study the student is pursuing tribe which the Secretary of the Interior de- tleman from Indiana (Mr. ROEMER) will termines performs law enforcement func- be postponed. consistent with section 484(c); ‘‘(2) committed to remaining drug-free; and tions.’’ Are there further amendments to ‘‘(3) attending class on a regular basis as to The CHAIRMAN. The Clerk will re- title IV? not interfere with normal course of studies port the modification. AMENDMENT NO. 33, AS MODIFIED, OFFERED BY except for excused absence for vacation, ill- MRS. KELLY ness, military service and such other periods The Clerk read as follows: Mrs. KELLY. Mr. Chairman, I offer deemed good cause by the eligible institu- Amendment No. 33, as modified, offered by Amendment No. 33, and I ask unani- tion or the Secretary. Mrs. KELLY: mous consent that the amendment I ‘‘SEC. 411C. AGREEMENTS WITH ELIGIBLE INSTI- Page 128, line 12, strike the close quotation TUTIONS. marks and following period and after such have submitted at the desk be consid- ‘‘For the purposes of this chapter, the Sec- line insert the following new chapter: ered as a substitute to the amendment retary is authorized to enter into agree- I had preprinted in the Congressional ments with eligible institutions in which any ‘‘CHAPTER 6—PUBLIC SAFETY OFFICER RECORD. student receiving a scholarship award under MEMORIAL SCHOLARSHIPS. this chapter has enrolled or has been accept- The text of Amendment No. 33 is as fol- ‘‘SEC. 411A.. SCHOLARSHIPS AUTHORIZED. lows: ed for enrollment. Each such agreement ‘‘(a) IN GENERAL.— Page 128, line 12, strike the close quotation shall— ‘‘(1) provide that an eligible institution ‘‘(1) SCHOLARSHIP AWARDS.—The Secretary marks and following period and after such is authorized to award a scholarship to any line insert the following new chapter: will cooperate with the Secretary in carry- ing out the provisions of this chapter, in- eligible applicant who is enrolled, or has ‘‘CHAPTER 6—PUBLIC SAFETY OFFICER cluding the provision of information nec- been accepted for enrollment, in an eligible MEMORIAL SCHOLARSHIPS. essary for a student to satisfy the require- institution as a full-time or part-time post- ‘‘SEC. 411A. SCHOLARSHIPS AUTHORIZED. ments in section 411B; secondary level student. ‘‘(a) IN GENERAL.— ‘‘(2) provide that the institution will con- ‘‘(2) APPLICATION.—To receive a scholarship ‘‘(1) SCHOLARSHIP AWARDS.—The Secretary duct a periodic review to determine whether award under this chapter, each eligible appli- is authorized to award a scholarship to any students enrolled and receiving scholarship cant shall submit an application to the Sec- eligible applicant who is enrolled, or has awards continue to be entitled to payments retary in such time and manner as may be been accepted for enrollment, in an eligible under this chapter and will notify the Sec- determined appropriate by the Secretary— institution as a full-time or part-time post- retary of the results of such reviews; and ‘‘(A) accompanied by a certification from secondary level student. ‘‘(3) provide for control and accounting the head of the agency that employed the ‘‘(2) APPLICATION.—To receive a scholarship procedures as may be necessary to assure public safety officer to whom the applicant award under this chapter, each eligible appli- proper disbursements and accounting of was married (in the case of a surviving cant shall submit an application to the Sec- funds paid under to the institution under spouse), or with whom the applicant was liv- retary in such time and manner as may be section 411A(e). ing or from whom the applicant was receiv- determined appropriate by the Secretary, ac- ‘‘SEC. 411D. DEFINITIONS. ing support contributions (in the case of a companied by a certification from the head ‘‘In this chapter: dependent child), stating that such officer of the agency that employed the public safe- ‘‘(1) DEPENDENT CHILD.—The term ‘depend- died as a result of the performance of the of- ty officer to whom the applicant was married ent child’ means a child who is either living ficer’s official duties; and (in the case of a surviving spouse), or with with or receiving regular support contribu- ‘‘(B) demonstrating the applicant’s need whom the applicant was living or from whom tions from a public safety officer at the time for financial aid under part F of this title, the applicant was receiving support con- of the officer’s death, including a stepchild determined without regard to any assets de- tributions (in the case of a dependent child), or an adopted child. rived from death benefits for such officer, to stating that such officer died as a result of ‘‘(2) ELIGIBLE APPLICANT.—The term ‘eligi- pursue a program of postsecondary edu- the performance of the officer’s official du- ble applicant’ means a person residing in a cation. ties. State who is— ‘‘(b) MAXIMUM AWARD.—For any academic ‘‘(b) MAXIMUM AWARD.—For any academic ‘‘(A) a surviving spouse; or year, the maximum amount of a scholarship year, the maximum amount of a scholarship ‘‘(B) a dependent child. award under this section for a postsecondary award under this section for a postsecondary ‘‘(3) ELIGIBLE INSTITUTION.—The term ‘eli- student may equal, but not exceed, the lesser student may equal, but not exceed, the lesser gible institution’ means an eligible institu- of the following: of the following: tion as defined in section 435(a) that— ‘‘(1) The average cost of attendance (as de- ‘‘(1) The average cost of attendance (as de- ‘‘(A) is located in a State; and fined in section 472), at a State university in fined in section 472), at a State university in ‘‘(B) complies with the antidiscrimination the State in which the student resides, for a the State in which the student resides, for a provisions of section 601 of the Civil Rights State resident carrying the same academic H2572 CONGRESSIONAL RECORD — HOUSE April 29, 1998 workload as the student, with the same num- Act of 1964 and does not discriminate on the sake of survival. We can prevent this ber of dependents as the student, and resid- basis of race. phenomenon by passing the amend- ing in the same type of housing as the stu- ‘‘(4) PUBLIC SAFETY OFFICER.—The term ment before us today. dent. ‘public safety officer’’ means a person serv- This amendment seeks to address ‘‘(2) The actual cost of attendance (as de- ing a public agency of a State or of a unit of fined in section 472) of such student. general local government, with or without this particular problem. Specifically, ‘‘(c) AWARD PERIOD.—The duration of each compensation, as— the bill authorizes the Secretary of award under this chapter for a postsecondary ‘‘(A) a law enforcement officer, including a Education to award education scholar- student, shall be the lesser of— corrections or a court officer engaged in— ships to the spouse or dependent child ‘‘(1) the time actually required by the stu- ‘‘(i) apprehending or attempting to appre- of a public safety officer, police, fire- dent to complete a course of study and ob- hend of any person— fighter or corrections officer who is tain a diploma; and ‘‘(I) for the commission of a criminal act; killed in the line of duty. These schol- ‘‘(2) 6 years in the case of a student en- or arships may be used to cover education gaged in undergraduate studies and 3 years ‘‘(II) who at the time was sought as a ma- in the case of a student engaged in post- terial witness in a criminal proceeding; or expenses to attend a postsecondary in- graduate studies. ‘‘(ii) protecting or guarding a person held stitution as a full-time or part-time ‘‘(d) NOTIFICATION.—The Secretary shall for the commission of a criminal act, or held student. notify the recipient and the eligible institu- as a material witness in connection with a This version of my amendment dif- tion of the applicant’s selection for receipt criminal act; or fers from the original preprinted ver- of an award under this chapter, the condi- ‘‘(iii) lawfully preventing of, or lawfully sion because it makes these scholar- tions pertaining to award eligibility and con- attempting to prevent the commission of, a ships need-based and extracts from the tinuance. criminal act or an apparent criminal act in calculation of that need any death ben- ‘‘(e) FISCAL AGENT.—The Secretary shall, if the performance of his official duty; or efits received by the family on account practicable, use the eligible institution as ‘‘(B) a firefighter. fiscal agent for payment of an award. ‘‘(5) SURVIVING SPOUSE.—The term ‘surviv- of the officer’s death. ‘‘SEC. 411B. ADDITIONAL AWARD REQUIREMENTS. ing spouse’’ means the legally married hus- The last Congress adopted similar ‘‘A student awarded a scholarship grant band or wife of a public safety officer at the legislation to award education assist- under this chapter, as a condition for initial time of the officer’s death. ance to family members of Federal law receipt of such award and periodically there- ‘‘(6) UNIT OF GENERAL LOCAL GOVERNMENT.— enforcement officers killed in the line after as a condition for its continuation, The term ‘unit of general local government’’ of duty. I was pleased to support that shall demonstrate to the satisfaction of the means any city, county, township, town, bor- legislation, which passed both the Secretary that the student is— ough, parish, village, or any other general House and the Senate by voice votes purpose subdivision of a State, or any Indian ‘‘(1) maintaining satisfactory progress in and was signed into law by President the course of study the student is pursuing tribe which the Secretary of the Interior de- consistent with section 484(c); termines performs law enforcement func- Clinton. I am proud to introduce this ‘‘(2) committed to remaining drug-free; and tions.’’. amendment, which takes the next log- ‘‘(3) attending class on a regular basis as to Mrs. KELLY (during the reading). ical step and extends this benefit to the not interfere with normal course of studies Mr. Chairman, I ask unanimous con- families of all public safety officers except for excused absence for vacation, ill- sent that the amendment, as modified, who are killed while serving their com- ness, military service and such other periods be considered as read and printed in munities. deemed good cause by the eligible institu- Crime is a reality in our Nation, and the RECORD. tion or the Secretary. we should acknowledge those brave and ‘‘SEC. 411C. AGREEMENTS WITH ELIGIBLE INSTI- The CHAIRMAN. Is there objection TUTIONS. to the request of the gentlewoman dedicated people who devote their ca- ‘‘For the purposes of this chapter, the Sec- from New York? reers to fighting crime in our neighbor- retary is authorized to enter into agree- There was no objection. hoods. Our public safety officers de- ments with eligible institutions in which any The CHAIRMAN. Is there objection serve our respect, gratitude and sup- student receiving a scholarship award under to the modification offered by the gen- port. I urge my colleagues to join me in this chapter has enrolled or has been accept- tlewoman from New York? support of this important amendment. ed for enrollment. Each such agreement There was no objection. Mr. FOX of Pennsylvania. Mr. Chair- shall— The CHAIRMAN. The modification is man, I move to strike the last word. ‘‘(1) provide that an eligible institution Mr. Chairman, I join the gentle- will cooperate with the Secretary in carry- accepted. ing out the provisions of this chapter, in- Mrs. KELLY. Mr. Chairman, I rise woman from New York (Mrs. KELLY) in cluding the provision of information nec- today to introduce an amendment that this outstanding amendment. We have essary for a student to satisfy the require- provides needed assistance to the fam- an outstanding bill here, but this ments in section 411B; ily members of public safety officers amendment also makes it better. ‘‘(2) provide that the institution will con- who are killed in the line of duty. To establish a memorial scholarship duct a periodic review to determine whether Police officers and firefighters lay program, to assist families of State and students enrolled and receiving scholarship their lives on the lines on a daily basis, local public safety officials, law en- awards continue to be entitled to payments Mr. Chairman, and, sadly, all too often forcement officers and firefighters who under this chapter and will notify the Sec- are killed in the line of duty with edu- retary of the results of such reviews; and they make the ultimate sacrifice in ‘‘(3) provide for control and accounting their service of their communities. cational assistance is certainly an all- procedures as may be necessary to assure This tragic fact was illustrated most American ideal and an all-American proper disbursements and accounting of recently in my district in New York idea. funds paid under to the institution under when a volunteer firefighter, Michael I worked with the gentlewoman from section 411A(e). Neuner, who was also a police officer, New York last year on the bill for the ‘‘SEC. 411D. DEFINITIONS. was killed last summer while fighting Federal officers along with Senator ‘‘In this chapter: a fire in the town of Southeast. SPECTER of Pennsylvania. That was in- ‘‘(1) DEPENDENT CHILD.—The term ‘depend- This unfortunate story is repeated spired, of course, by the Federal offi- ent child’’ means a child who is either living around the country, Mr. Chairman. cer, Marshal Degan, who died at Ruby with or receiving regular support contribu- tions from a public safety officer at the time These are our friends, our neighbors, Ridge, as well as an officer in my dis- of the officer’s death, including a stepchild our loved ones, and they leave behind trict, Chuck Reed, who was the first or an adopted child. families who must continue on. The Federal officer at the FBI ever killed ‘‘(2) ELIGIBLE APPLICANT.—The term ‘eligi- death of a father or mother takes an out of the Philadelphia office. ble applicant’’ means a person residing in a obvious emotional toll, but it has an The fact is, these people do put their State who is— impact on the financial security of the lives on the line everyday. When they ‘‘(A) a surviving spouse; or family, particularly when it comes to leave their family, they do not know ‘‘(B) a dependent child. meeting educational expenses. whether they will come back. And the ‘‘(3) ELIGIBLE INSTITUTION.—The term ‘eli- Oftentimes, for the sake of putting fact is, their families have to go on, gible institution’ means an eligible institu- tion as defined in section 435(a) that— food on the table and a roof over their hopefully as well as they can to try to ‘‘(A) is located in a State; and family’s heads, a single parent who has make a whole life while knowing that ‘‘(B) complies with the antidiscrimination lost their spouse will forsake providing their spouse has sacrificed greatly to provisions of section 601 of the Civil Rights for their children’s education for the keep our communities safe, free of April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2573 crime and also free of the fire tragedies for a penalty under section 6672(a) of title 26, Mr. ALLEN (during the reading). Mr. that can occur. United States Code, with respect to the non- Chairman, I ask unanimous consent payment of taxes. b 2200 that the amendment, as modified, be ‘‘(7) Notwithstanding any other provision considered as read and printed in the of law, a proprietary institution of higher And so, by establishing this memo- RECORD. rial scholarship, the gentlewoman from education, as defined in section 481(b), may be provisionally certified under subsection The CHAIRMAN. Is there objection New York (Mrs. KELLY) is leading the (h) only if it provides the Secretary with fi- to the request of the gentleman from fight for us across America in making nancial guarantees from one or more individ- Maine? sure that our communities, while they uals whom the Secretary determines, in ac- There was no objection. remain safe, will also make sure we re- cordance with subsection (e)(2), exercise sub- The CHAIRMAN. Without objection, member the families. stantial control over such institution. Such the modification is agreed to. So I rise, Mr. Speaker, and other financial guarantees shall be in addition to There was no objection. Members of the House on both sides of any financial guarantees otherwise required The CHAIRMAN. The gentleman the aisle, this is a truly a bipartisan from the institution and shall be in an from Maine (Mr. ALLEN) is recognized amount determined by the Secretary to be for 5 minutes. idea for a bipartisan bill, and I look for sufficient to satisfy the institution’s poten- unanimous adoption here in the House Mr. ALLEN. Mr. Chairman, I wanted tial liability to the Federal Government, to thank the chairman and ranking and an eventual adoption into law. student assistance recipients, and other pro- Mr. MCKEON. Mr. Chairman, I move gram participants for funds under this title member of the subcommittee and to strike the requisite number of during the period of provisional certifi- chairman and ranking member of the words. cation.’’. full committee and say that the modi- I want to congratulate the gentle- (2) EFFECTIVE DATE.—The amendments fied version of my amendment removes made by paragraph (1)— woman from New York (Mrs. KELLY) the requirement of financial guaran- (A) relating to responsibility for unpaid re- for her amendment. It is very com- tees from prospective owners of for- funds, shall be effective with respect to any profit educational institutions during mendable to want to provide assistance unpaid refunds that were first required to be to the sons and daughters of public provisional certification. paid to a lender or to the Secretary on or The modified amendment maintains safety officers who died as a result of after 90 days after the date of enactment of the provisions which ensure that own- the performance of their official duties. this Act; ers of higher education institutions The awards made under this program (B) relating to financial guarantees re- may be held liable for repayment of will be need-based, so the money will quired for provisional certification, shall be funds that taxpayers intended for eligi- be going to a student who has financial effective with respect to any proprietary in- stitution of higher education provisionally ble students. need as determined under the Higher certified by the Secretary on or after the In Maine, students and families are Education Act. I would support this date of enactment of this Act. owed hundreds of thousands of dollars amendment. Page 269, after line 4, insert the following in refunds by owners of for-profit insti- Mr. KILDEE. Mr. Chairman, I move new subsection: tutions which have been closed down to strike the requisite number of (i) CHANGE IN STATUS.— (1) AMENDMENT.—Section 498(i)(2) is due to mismanagement. An owner of words. one such institution has been able to Mr. Chairman, as one who has seen amended by striking subparagraph (E) and inserting the following new subparagraph: move his business to another State and too many police and firefighters and ‘‘(E) the change in tax filing status of an continue to draw Federal financial aid correction officers in my own district institution from for-profit to non-profit; or’’. dollars. killed in the line of duty, I commend (2) EFFECTIVE DATE.—The amendment This situation is not peculiar to the gentlewoman from New York (Mrs. made by paragraph (1) shall be effective on Maine. Students and families all over KELLY) for her amendment. I think it the date of the enactment of this Act. the country are owed money by owners is a very good amendment, and we ac- MODIFICATION TO AMENDMENT NO. 11 OFFERED of schools that have failed. I have been BY MR. ALLEN cept it on this side. told by the Inspector General’s Office Mr. ALLEN. Mr. Chairman, I ask The CHAIRMAN. The question is on that between 85 and 95 percent of their the amendment offered by the gentle- unanimous consent that the amend- ment be modified in the form at the open cases concerning for-profit insti- woman from New York (Mrs. KELLY), tutions involve student loan refund as modified. desk. The CHAIRMAN. The Clerk will re- problems. The amendment, as modified, was Students should be able to attend an agreed to. port the modification. The Clerk read as follows: educational institution and trust that The CHAIRMAN. Are there other their tuition and financial aid dollars amendments to title IV? Amendment No. 11, as modified, offered by Mr. ALLEN: are being handled properly. When this AMENDMENT NO. 11 OFFERED BY MR. ALLEN Page 267, after line 11, insert the following is not the case, the Secretary should Mr. ALLEN. Mr. Chairman, I offer an new subsection (and redesignate the succeed- have the power to impose appropriate amendment. ing subsections accordingly): sanctions not only against the institu- The CHAIRMAN. The Clerk will des- (d) FINANCIAL RESPONSIBILITY FOR REFUNDS tion involved, but also against the AND DURING PROVISIONAL CERTIFICATION.— ignate the amendment. (1) AMENDMENT.—Section 498(e) is amended owner of the institution. The text of the amendment is as fol- by adding at the end the following new para- My amendment will solidify the Sec- lows: graph: retary’s power to hold the institution Amendment No. 11 Offered by Mr. ALLEN: ‘‘(6) Notwithstanding any other provision of a proprietary higher education insti- Page 267, after line 11, insert the following of law, any person required to pay, on behalf tution liable for financial losses to the new subsection (and redesignate the succeed- of a student or borrower, a refund of un- Federal Government and student loan ing subsections accordingly): earned institutional charges to a lender, or recipients. Presently, the Secretary (d) FINANCIAL RESPONSIBILITY FOR REFUNDS the Secretary, who willfully fails to pay such has only been able to seek recourse AND DURING PROVISIONAL CERTIFICATION.— refund or willfully attempts in any manner from institutions, not their owners; (1) AMENDMENT.—Section 498(e) is amended to evade payment of such refund, shall, in by adding at the end the following new para- addition to other penalties provided by law, however, many such institutions are graphs: be liable to the Secretary for the amount of bankrupt, so no money is recovered. ‘‘(6) Notwithstanding any other provision the refund not paid, to the same extent with My amendment provides the Sec- of law, any person required to pay, on behalf respect to such refund that such an individ- retary with a mechanism to collect the of a student or borrower, a refund of un- ual would be liable as a responsible person funds. It does so by holding the owner earned institutional charges to a lender, or for a penalty under section 6672(a) of title 26, liable in the same way that an individ- the Secretary, who willfully fails to pay such United States Code, with respect to the non- ual would be responsible for penalties refund or willfully attempts in any manner payment of taxes.’’. for the nonpayment of taxes. Taxpayer to evade payment of such refund, shall, in (2) EFFECTIVE DATE.—The amendments addition to other penalties provided by law, made by paragraph (1) shall be effective with dollars must be protected to ensure the be liable to the Secretary for the amount of respect to any unpaid refunds that were first continued availability and viability of the refund not paid, to the same extent with required to be paid to a lender or to the Sec- student financial aid programs. respect to such refund that such an individ- retary on or after 90 days after the date of I urge my colleagues to accept this ual would be liable as a responsible person enactment of this Act. amendment, support this amendment. H2574 CONGRESSIONAL RECORD — HOUSE April 29, 1998

Mr. MCKEON. Mr. Chairman, I move happy to support the amendment of the rowers who received loan repayment under to strike the last word. gentleman. this section for the preceding fiscal year. Again, the gentleman from Maine The CHAIRMAN. The question is on ‘‘(3) REGULATIONS.—The Secretary is au- thorized to prescribe such regulations as (Mr. ALLEN) is not a member of the the amendment offered by the gen- may be necessary to carry out the provisions committee, but has added a good, tleman from Maine (Mr. ALLEN), as of this section. thoughtful amendment, and I would modified. ‘‘(c) LOAN REPAYMENT.— support that amendment. The amendment, as modified, was ‘‘(1) IN GENERAL.—The Secretary shall as- Mr. ANDREWS. Mr. Chairman, I agreed to. sume the obligation to repay— move to strike the requisite number of The CHAIRMAN. Are there further ‘‘(A) after the second year of employment words. amendments to title IV? described in subparagraphs (B) and (C) of I rise in support of the amendment of AMENDMENT NO. 7 OFFERED BY MR. LAZIO OF subsection (b)(1), 20 percent of the total the gentleman from Maine. I would NEW YORK amount of all loans made after date of enact- like to make a couple comments about Mr. LAZIO of New York. Mr. Chair- ment of the Higher Education Amendments it. First of all, I thank him for his of 1998, to a student under this part or part man, I offer an amendment. D; modification. I think it is very impor- The CHAIRMAN. The Clerk will des- ‘‘(B) after the third year of such employ- tant that we continue the custom and ignate the amendment. ment, 20 percent of the total amount of all tradition in this bill of treating all The text of the amendment is as fol- such loans; and schools on a level playing field, not sin- lows: ‘‘(C) after each of the fourth and fifth years gling out any category of higher edu- Amendment No. 7 offered by Mr. LAZIO of of such employment, 30 percent of the total cation for special favored or disfavored New York: amount of all such loans. treatment. I think the gentleman has Page 192, after line 10, insert the following ‘‘(2) CONSTRUCTION.—Nothing in this sec- remained consistent with that tradi- new section (and conform the table of con- tion shall be construed to authorize the re- funding of any repayment of a loan made tion by making the modification to tents accordingly): SEC. 430. LOAN FORGIVENESS FOR CHILD CARE under this part or part D. this amendment. I appreciate that. PROVIDERS. ‘‘(3) INTEREST.—If a portion of a loan is re- I would like to point out one concern (a) PURPOSE.—It is the purpose of this sec- paid by the Secretary under this section for that I have, for the RECORD, which I tion— any year, the proportionate amount of inter- would hope that we would address at (1) to bring more highly trained individuals est on such loan which accrues for such year conference with the gentleman’s par- into the early child care profession; and shall be repaid by the Secretary. ticipation, and that is clearing up any (2) to keep more highly trained child care ‘‘(4) SPECIAL RULE.—In the case where a ambiguity about the definition of the providers in the early child care field for student borrower who is not participating in loan repayment pursuant to this section re- word ‘‘person’’ in what is subparagraph longer periods of time. (b) LOAN FORGIVENESS FOR CHILD CARE turns to an institution of higher education 6 of his amendment, where it says, PROVIDERS.—Part B (20 U.S.C. 1071 et seq.) is after graduation from an institution of high- ‘‘Any person required to pay, on behalf amended by inserting after section 428J (as er education for the purpose of obtaining a of a student or borrower, a refund added by section 432) (20 U.S.C. 1078–10) the degree in early childhood education, the Sec- shall, in addition to other penalties following: retary is authorized to assume the obligation provided by law, be liable to the Sec- ‘‘SEC. 428K. LOAN FORGIVENESS FOR CHILD to repay the total amount of loans made retary for the amount of the refund not CARE PROVIDERS. under this part or part D incurred for a max- paid.’’ ‘‘(a) DEFINITIONS.—In this section: imum of two academic years in returning to ‘‘(1) CHILD CARE FACILITY.—The term ‘child an institution of higher education for the I think it is very important that we purpose of obtaining a degree in early child- be clear as to who the person is, for the care facility’ means a facility, including a home, that— hood education. Such loans shall only be re- following reasons: If the institution ‘‘(A) provides child care services; and paid for borrowers who qualify for loan re- that is on the hook for this is a com- ‘‘(B) meets applicable State or local gov- payment pursuant to the provisions of this munity college, let us say we want to ernment licensing, certification, approval, or section, and shall be repaid in accordance be very clear that the comptroller of registration requirements, if any. with the provisions of paragraph (1). the community college will not be per- ‘‘(2) CHILD CARE SERVICES.—The term ‘child ‘‘(5) INELIGIBILITY OF NATIONAL SERVICE sonally liable for this obligation unless care services’ means activities and services AWARD RECIPIENTS.—No student borrower may, for the same volunteer service, receive he or she committed some kind of provided for the education and care of chil- dren from birth through age 5 by an individ- a benefit under both this section and subtitle crime. D of title I of the National and Community I am sure that is not the intent of the ual who has a degree in early childhood edu- cation. Service Act of 1990 (42 U.S.C. 12601 et seq.). gentleman. The same would be true of ‘‘(3) DEGREE.—The term ‘degree’ means an ‘‘(d) REPAYMENT TO ELIGIBLE LENDERS.— a for-profit school if an individual is associate’s or bachelor’s degree awarded by The Secretary shall pay to each eligible not financially involved, but the cor- an institution of higher education. lender or holder for each fiscal year an poration for which the individual is. ‘‘(4) EARLY CHILDHOOD EDUCATION.—The amount equal to the aggregate amount of And I would hope that we would have term ‘early childhood education’ means edu- loans which are subject to repayment pursu- the cooperation of the gentleman in re- cation in the areas of early child education, ant to this section for such year. solving those matters as we proceed. child care, or any other educational area re- ‘‘(e) APPLICATION FOR REPAYMENT.— ‘‘(1) IN GENERAL.—Each eligible individual Mr. ALLEN. Mr. Chairman, will the lated to child care that the Secretary deter- mines appropriate. desiring loan repayment under this section gentleman yield? ‘‘(b) DEMONSTRATION PROGRAM.— shall submit a complete and accurate appli- Mr. ANDREWS. I yield to the gen- ‘‘(1) IN GENERAL.—The Secretary may carry cation to the Secretary at such time, in such tleman from Maine. out a demonstration program of assuming manner, and containing such information as Mr. ALLEN. Mr. Chairman, I am the obligation to repay, pursuant to sub- the Secretary may require. happy to work through those issues section (c), a loan made, insured or guaran- ‘‘(2) CONDITIONS.—An eligible individual with my colleague. It is certainly not teed under this part or part D (excluding may apply for loan repayment under this our intent to hold the comptroller of loans made under sections 428B and 428C) for section after completing each year of quali- any institution liable. We have felt any new borrower after the date of enact- fying employment. The borrower shall re- ment of the Higher Education Amendments ceive forbearance while engaged in qualify- that this amendment would apply only of 1998, who— ing employment unless the borrower is in to for-profit institutions and not to ‘‘(A) completes a degree in early childhood deferment while so engaged. any public universities or nonprofits. education; and ‘‘(f) EVALUATION.— But if it is written in a way to apply to ‘‘(B) obtains employment in a child care ‘‘(1) IN GENERAL.—The Secretary shall con- everyone, it should only apply to those facility. duct, by grant or contract, an independent who are owners in the sense that they ‘‘(2) AWARD BASIS; PRIORITY.— national evaluation of the impact of the own stock in the institution. That is ‘‘(A) AWARD BASIS.—Subject to subpara- demonstration program assisted under this the intention. graph (B), loan repayment under this section section on the field of early childhood edu- Mr. ANDREWS. Reclaiming my time, shall be on a first-come, first-served basis cation. and subject to the availability of appropria- ‘‘(2) COMPETITIVE BASIS.—The grant or con- I again understand that this is de- tions. tract described in subsection (a) shall be signed to keep the same level playing ‘‘(B) PRIORITY.—The Secretary shall give awarded on a competitive basis. field we have always had on that basis, priority in providing loan repayment under ‘‘(3) CONTENTS.—The evaluation described and with that reservation, I will be this section for a fiscal year to student bor- in this subsection shall— April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2575 ‘‘(A) determine the number of individuals children. In fact, an article from Mon- An early child care work force com- who were encouraged by the demonstration day’s New York Times highlights this posed of staff with specialized knowl- program assisted under this section to pur- very issue at a child care center in edge about young children and how sue early childhood education; Houston. According to the article, they learn and grow will significantly ‘‘(B) determine the number of individuals who remain employed in a child care facility workers at facilities with fewer adults increase the quality of care in this as a result of participation in the program; see their role more as managing chil- country. We can expect these graduates ‘‘(C) identify the barriers to the effective- dren than in interacting with them. to be effective teachers who provide ness of the program; Staff in these Houston centers do not meaningful learning experiences during ‘‘(D) assess the cost-effectiveness of the have the time to engage the children the most critical period of a child’s de- program in improving the quality of— who are playing or attend to babies un- velopment. ‘‘(i) early childhood education; and less they need immediate attention. Of course, parents carry the major ‘‘(ii) child care services; Despite these findings, we have seen responsibility for their children. Part ‘‘(E) identify the reasons why participants in the program have chosen to take part in the average ratio of children to care- of this responsibility for parents who the program; givers increase considerably from 6.8 to must work is finding dependable child ‘‘(F) identify the number of individuals 8.5 children per worker between 1976 care professionals to provide respon- participating in the program who received an and 1990. sible care for their children. Without associate’s degree and the number of such in- Mr. Speaker, as more parents return the availability of stable care, employ- dividuals who received a bachelor’s degree; to work, we can expect the number of ers find that their employees are apt to and children in child care to increase. In miss work or in some cases leave their ‘‘(G) identify the number of years each in- order to provide our children with jobs altogether. dividual participates in the program. quality care, we must have more care- As we try to move forward individ- ‘‘(4) INTERIM AND FINAL EVALUATION RE- PORTS.—The Secretary shall prepare and sub- givers per child. Bringing more well- uals from welfare to the work force, we mit to the President and the Congress such educated, dedicated early child care must provide families with the support interim reports regarding the evaluation de- graduates into the field would help al- of a highly trained and reliable child scribed in this subsection as the Secretary leviate the problem. care work force. deems appropriate, and shall prepare and so Most students who choose a child Mr. Chairman, as long as our current submit a final report regarding the evalua- care career want the best for children economic climate forces parents to tion by January 1, 2002. and value the care and education they work outside the home, we must pro- ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated to can provide for each child. However, vide some assurance that their children carry out this section $10,000,000 for fiscal child care professionals are paid on av- are properly cared for by encouraging year 1999, and such sums as may be necessary erage about $6.90 per hour and receive bright and qualified early child care for each of the 4 succeeding fiscal years.’’. few, if any, benefits. For students grad- graduates to enter and stay with the Mr. LAZIO of New York. Mr. Speak- uating with $12,000 to $15,000 in college profession. This amendment will help er, the Lazio-Gilman-Tauscher amend- loans, and many more than that, there give more families access to quality ment will address a matter of dire im- is very little incentive to stay in the child care. I urge my colleagues to portance to American families, the profession. adopt it. need for high-quality child care. As a result, Mr. Speaker, many of the Mrs. TAUSCHER. Mr. Chairman, I As a parent of two, I know how dif- country’s best qualified early edu- move to strike the last word. ficult it is to leave our children in the cation graduates either do not enter or Mr. Speaker, I rise in support of the care of others. While most of us agree do not remain in the field. In fact, the Lazio-Gilman-Tauscher amendment that a parent would provide the best turnover rate for child care workers is and urge my colleagues to support this care for a young child, many of our four times higher than for their coun- important provision. This amendment young families simply do not have the terparts in the public schools. is based on a measure recently intro- option of doing so. Today in America, As large numbers of the early child- duced by the gentleman from New more and more parents work outside hood work force consider leaving their York (Mr. LAZIO) and was included as the home. In fact, 62 percent of moms positions, we have the opportunity to part the Senate-based Higher Edu- with children under 6 are in the work offer a modest yet meaningful incen- cation Act. force. While we fight to reduce the tax tive to the most qualified staff mem- This amendment would authorize burden that forces families into this bers who stay in the field, loan forgive- funding for a demonstration project economic situation, we need to assure ness. Our amendment would offer stu- that would forgive Federal student the parents who must work that their dent loan forgiveness to individuals loans for individuals who have an asso- children will be taken care of by quali- who earn a degree in early child edu- ciate or bachelor’s degree in early fied, competent individuals. cation and work in a licensed child childhood education and who work in a We know that parents want the best care facility, including a home-based licensed child care facility for 5 years. for their children. They want to know child care center. I believe it is imperative that we as a that if their children cannot be at In order to maintain stability in the Nation do more to provide stability in home, they are in a healthy and nur- industry, my amendment would pro- the lives of our young children. Part of turing environment. Today, 13 million vide an incentive to enter and remain that stability comes from them having children under the age of 6 are in child in the child care field. After the second the same providers teaching them and care programs. For these children the and third year of service, a child care taking care of them every day. How- care and attention that they receive worker would be eligible to receive 20 ever, trained individuals who want to from child care staff is critical. When percent loan forgiveness. After the work for child care centers often can- children have stable and caring edu- fourth and fifth years, the child care not enter this field because they are cators, they feel secure and are ready provider would qualify for 30 percent unable to find a job that gives them to learn. loan forgiveness. adequate financial footing to pay back A study by the National Institutes of In order to ensure efficiency at the their student loans. Health shows that staff-child ratio and end of this 5-year demonstration pro- On average, the cost of a 2-year de- teacher education contribute to the gram, the Secretary of Education gree at a private college is about quality of a child care program. Chil- would publish a report on the initia- $12,500. And, unfortunately, child care dren in quality facilities have fewer be- tive. Rather than create an enormous teaching staff earn on average less havioral problems, stronger language mandatory spending program to ad- than $8 per hour, or only $13,000 per ability, and a higher level of school dress the need for quality child care, year, for the very valuable work that readiness. Unfortunately, because of this amendment offers a focused, rea- they do. high staff turnover and low staff sal- sonable approach to resolving the prob- b ary, quality is something many child lem. 2215 care programs lack. By offering loan forgiveness to child They earn these low wages despite The NIH report shows that a low care staff, we can begin to recruit and the fact that they are better educated staff-child care ratio clearly benefits maintain a more qualified work force. than the general population. H2576 CONGRESSIONAL RECORD — HOUSE April 29, 1998 The average salary for child care pro- know the majority of students graduat- that we need to provide the best- viders in center-based care is only ing from college are burdened with trained individuals to make sure that about $4500 higher than the Federal thousands of dollars of student loan they are taken care of. poverty guidelines for a single adult debt. This is a further disincentive to This modest amendment will have a and is nowhere near the $16,000 per year entering the child care field. major impact, because it will help salary which is considered to be a liv- The aim of this amendment is to pro- produce more competent child care able wage for a single adult. vide an incentive for students to enter workers. These child care providers are It is no wonder, then, that 31 percent into child care professions. This crucial to the health and the welfare of of all child care teachers leave their amendment would forgive a percentage our children. They are crucial to the jobs each year for other employment. of the debt owed by graduates that parents who must support their fami- They simply cannot afford to simulta- choose to enter the child care field. lies. I urge that this amendment be neously pay back any student loans The challenge here is that while stu- adopted so that we can provide the nec- that they may have and financially dents may strongly desire to work in essary care. support themselves. child care and teach young children, Mr. KILDEE. Mr. Chairman, I move The Lazio-Gilman-Tauscher amend- they know that their income will be so to strike the requisite number of ment would help lower this astronomi- modest that there will be no way pos- words. I rise to support the amend- cally high attrition rate among quali- sible that they could ever realistically ment. fied child care providers by providing repay their student loans. This amend- I introduced the first child care bill loan forgiveness for student loans, thus ment provides a much-needed incentive in this House since Richard Nixon had making it financially feasible for for students to choose this vitally im- proposed child care many years ago. knowledgeable providers to actually portant career path. The amendment Richard Nixon did some good things, stay and work in the field for which would also seek to retain these workers among them his child care bill. In ana- they were trained. The language in this in the child care field by increasing the lyzing and studying child care at the amendment is based on the LAZIO bill, percentage of loan forgiveness the time, I discovered that the workers at H.R. 3727, a similar provision is in my longer they work. our Nation’s zoos, who earn every bill, H.R. 3686, the Model States Child It is very difficult for parents to, of penny that they earn, they certainly Care Enhancement Act which I intro- course, leave their children in the care earn it all, but they make more than duced a month ago with the gentleman of others. Unfortunately this is nec- child care workers. I have always felt from Maine (Mr. ALLEN) and the gen- essary because of our current economic that those who take care of children tleman from Virginia (Mr. MORAN). Al- climate, with many parents working should at least be making the amount though slightly different in design, the more than one job and both parents of money as those who would take care intent is the same. working. Although most parents would of the animals at our Nation’s zoos. We must do more to help qualified prefer to stay home with their chil- We have had a desperate situation in child care providers make ends meet, dren, about 75 percent of married cou- child care and the remuneration to our and we must do more to provide our ples with children work outside the workers there. I think that the amend- kids with that level of security in their home. This amendment will go a long ment that the gentleman from New lives that they require. We must not way towards ensuring that our children York (Mr. LAZIO) is offering will help underestimate the effect this stability are left in qualified, well-trained alleviate that to a great degree. I sup- has on our Nation’s children. port the amendment. Quality is a function of experience. hands. It will also provide parents im- Mr. ANDREWS. Mr. Chairman, I Nationwide, only 32 percent of child portant peace of mind. Again, I would like to thank the gen- move to strike the requisite number of care teachers have been employed in words. I also rise in support of the their centers for at least 5 years. When tleman from New York (Mr. LAZIO) for amendment offered by the gentleman teachers have the dual benefit of edu- his leadership on this issue. I urge my from New York (Mr. LAZIO), the gen- cation and experience, then we as par- colleagues to vote for this important tleman from New York (Mr. GILMAN) ents can be assured that our children initiative. and the gentlewoman from California are receiving the highest quality in Mrs. CLAYTON. Mr. Chairman, I child care. Let us help those people move to strike the requisite number of (Mrs. TAUSCHER). I think it is important that we un- who have made the educational com- words. Mr. Chairman, I also want to rise to derstand how much of a sacrifice peo- mitment to caring for children stay in ple make when they go to work in the the field and get that valuable experi- support the Lazio-Gilman-Tauscher child care field. The gentleman from ence. amendment. I want to speak about the I am pleased to work so closely with importance of providing quality child New York (Mr. LAZIO) and the gentle- the gentleman from New York (Mr. care and doing all that we can to in- woman from California (Mrs. LAZIO) and the gentleman from New crease the supply of well-trained indi- TAUSCHER) have spoken very clearly York (Mr. GILMAN) and I urge accept- viduals to provide for our precious chil- and eloquently about that, but I think ance of this bipartisan, bicameral dren. there are some numbers that were in amendment. A tragic story most poignantly the newspaper, in the New York Times Mr. FOX of Pennsylvania. Mr. Chair- pointed out the need of providing child today, which dramatically illustrate man, I move to strike the requisite care. Recently in the Washington Post the economic priority we put on taking number of words. I would like to thank we all heard about a police officer who care of our children as opposed to the the gentleman from New York (Mr. found that she had to choose between rhetoric that we talk about taking care LAZIO), the gentleman from New York having child care and taking care of of our children. (Mr. GILMAN) and the gentlewoman her children. Since she had no child There was a study done which indi- from California (Mrs. TAUSCHER) for of- care, she had only one day job. You cates that the median hourly wage of fering this important amendment to heard the story. On her first day of animal caretakers, people who take the Higher Education Amendments. being jobless and with her children at care of our pets, is $6.90 an hour; the Child care is an issue that concerns her side, she held her colleagues who median hourly wage of parking lot at- all families. Making sure that Amer- came to her home at bay with a gun. tendants, people who watch our cars, is ican families have access to quality While none of us condone her action, $6.38 an hour; and the median wage of child care should be one of our top pri- we all have to recognize the pressure, child care workers, who care for and orities in the Congress. As Members the agony and the desperation she watch our children, was $6.12 an hour. may know, an average child care work- must have felt in trying to keep her job So we literally pay people more to er earns less than $7 per hour. It is easy and to care for her children as well. watch our pets and our cars than we do to see that this does not provide enor- We understand that this Nation’s fu- our children. mous incentive for young graduates to ture, millions of our babies, children One of the ways that we begin to re- enter the child care profession. and youth, spend large quantities of dress that grievance, and it is a griev- Moreover, the best child care is pro- their time in the child care environ- ance, is this proposal which suggests vided by educated workers. We all ment. Therefore, it is understandable that a limited number of child care April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2577 workers will be able to finance their good. The last amendment was a good ment be considered as read and printed education by working in quality, af- amendment. This is a good amend- in the RECORD. fordable child care. ment. The CHAIRMAN. Is there objection This is an example, and I know that Where is the gentleman from South to the request of the gentlewoman both the gentlewoman from California Carolina (Mr. SPRATT) when I need from Texas? (Mrs. TAUSCHER) and the gentleman him? Obviously we know very well that There was no objection. from New York (Mr. LAZIO) are the par- if any of these amendments get funded, The CHAIRMAN. Without objection, ents of young children, as am I, so they money must be taken from some other the modification is accepted. know this issue very personally. It is place. I do not know where that will be, There was no objection. an example of how the two sides of the but it might be one of your other favor- Ms. JACKSON-LEE of Texas. Mr. aisle can come together on a very prac- ite programs or, even worse, it might Chairman, particularly I would like to tical idea. I commend the authors and be one of my favorite programs. thank the leadership of this committee heartily support the amendment. I just want to have a little reality which includes, of course, the gen- Ms. JACKSON-LEE of Texas. Mr. check here and make sure everybody tleman from Missouri (Mr. CLAY), the Chairman, will the gentleman yield? understands. We are feeling good. But gentleman from Michigan (Mr. KIL- Mr. ANDREWS. I yield to the gentle- if they take money from us in order to DEE), certainly the gentleman from woman from Texas. fund these programs, we will not be Pennsylvania (Mr. GOODLING) and var- Ms. JACKSON-LEE of Texas. Mr. feeling so good. ious other subcommittee chairs for Chairman, we do appreciate very much The CHAIRMAN. The question is on really the cooperative effort and spirit this very forthright and forward think- the amendment offered by the gen- of this legislation. ing legislation. tleman from New York (Mr. LAZIO). It is important for the American peo- Another number I would like to share The amendment was agreed to. ple to see that all of the Congress sup- with my colleagues is that the average AMENDMENT NO. 29 OFFERED BY MS. JACKSON- ports education. This bill I think will salary of a child care worker may be LEE OF TEXAS help us, Mr. Chairman, do something barely $12,000. It is very important that Ms. JACKSON-LEE of Texas. Mr. that we would really like to see occur, we provide the opportunities for profes- Chairman, I offer an amendment. and that is to see our student loans re- sionalism, for training, for incentives, The CHAIRMAN. The Clerk will des- paid. This amendment requests a study for learning creative techniques and ignate the amendment. of default rates. It will make the lend- styles of teaching our very young chil- The text of the amendment is as fol- ers happy, it will make the students dren. lows: happy, it will make the government As Mrs. Clinton has indicated in her Amendment No. 29 offered by Ms. JACKSON- happy, because it will provide us with emphasis on the zero to 3 development, LEE of Texas: the kind of analysis that will help us early development, it is so very impor- Page 182, line 14, strike the close quotation determine why there may be a high de- tant the kind of exposure our children marks and following period and after such fault rate, what are the approaches we have, safe and secure environment, and line insert the following new paragraph: are using or not using. the kind of caretaker who not only ‘‘(7) AUTHORITY OF THE SECRETARY TO AS- b 2230 cares and loves them but also has a SIST DISTRESSED INSTITUTION.—The Sec- professional attitude and an ability to retary is authorized to provide administra- I would hope that the Micro Com- train them. tive, fiscal, management, strategic planning puter Technology Institute located in I want to add my accolades but as and technical assistance through a qualified the City of Houston, which provides third-party consultant identified by the in- well my support enthusiastically to the stitution or an organization representing technology education to the residents kind of legislation that will provide op- such institutions. Institutions eligible for of the Eighteenth Congressional Dis- portunities for professional child care such assistance include those institutions trict, would benefit from this. Eighty- providers, making this the kind of sys- which qualify for the exemption in para- seven students from my congressional tem that we can be proud of. I think graph (2)(C)(i), (ii), and (iii) of this sub- district were included in the cohort for this will particularly help our mothers section, or which have submitted a default fiscal year 1993. Of that number, 54 moving from welfare to work. I thank management plan under paragraph (5) which were adversely effected by what ap- the gentleman for yielding. has been accepted by the Secretary. peared to be improper servicing of Mr. MCKEON. Mr. Chairman, I move MODIFICATION TO AMENDMENT NO. 29 OFFERED their loans. to strike the requisite number of BY MS. JACKSON-LEE OF TEXAS There are many issues, Mr. Chair- words. I want to commend the gen- Ms. JACKSON-LEE of Texas. Mr. man, that impact why loans are de- tleman from New York (Mr. LAZIO), Chairman, I ask unanimous consent faulted. I believe in student loans. I classmate, subcommittee chairman on that my amendment be modified with had student loans. I paid back student another committee, for a well thought the modification at the desk. loans. I want to see student loans being out and good amendment. I want to The CHAIRMAN. The Clerk will re- a viable element of our higher edu- support his amendment. port the modification. cation. It helps so many of our con- This program was patterned after the The Clerk read as follows: stituents. loan forgiveness for teachers already Amendment No. 29 offered Ms. JACKSON- So I would offer this amendment so included in H.R. 6. Students cannot re- LEE of Texas, as modified: that we can get, if my colleagues will, ceive loan forgiveness until after they Page 182, line 14, strike the close quotation to the bottom of it, provide the kind of marks and following period and after such have completed their second year of line insert the following new paragraph: information and possibly avoid the employment, at which time 20 percent ‘‘(7) AUTHORITY OF THE SECRETARY TO AS- kind of default rates that we have had of their loans may be forgiven, 20 per- SIST DISTRESSED INSTITUTIONS.—The Sec- and the criticism of our very viable cent after the third year, and 30 per- retary is authorized pursuant to section loan programs. cent after the fourth and fifth years of 326(c)(7) to provide administrative, fiscal, Mr. GOODLING. Mr. Chairman, will employment, which guarantees that management, strategic planning, and tech- the gentlewoman yield? people will continue to work in the nical assistance through a qualified third- Ms. JACKSON-LEE of Texas. I yield program for a period of time, which is party consultant identified by the institu- to the gentleman from Pennsylvania. tion or an organization representing such in- Mr. GOODLING. Mr. Chairman, I very beneficial. Loan forgiveness pro- stitutions. Institutions eligible for such as- grams structured in this manner serve sistance include those institutions which want to make sure that we have this as good incentives to attract and re- qualify for the exemption in paragraph clear. We are accepting her amend- tain qualified teachers, especially in (2)(C)(i), (ii), and (iii) of this subsection, or ment, but she said she was offering 29, low paying professions or areas. I urge which have submitted a default management but she talked about 27. But we are a ‘‘yes’’ vote on the amendment. plan under paragraph (5) which has been ac- going to accept 29 and 27, but her dis- Mr. GOODLING. Mr. Chairman, I cepted by the Secretary. cussion was on 27 rather than on 29. move to strike the requisite number of Ms. JACKSON-LEE of Texas (during Ms. JACKSON-LEE of Texas. Mr. words. I rise to bring reality to the dis- the reading). Mr. Chairman, I ask Chairman, the gentleman may be right. cussion. We are making each other feel unanimous consent that the amend- Because I have had them both here, H2578 CONGRESSIONAL RECORD — HOUSE April 29, 1998 and the gentleman is absolutely right. leges and universities should be able to have default rates of student borrowers as it relates One was on distressed institutions. impartial consultation about their administra- to the servicing of the loans or the due dili- Mr. GOODLING. We are going to ac- tive or fiscal needs without facing con- gence of the loan. The goal of this study will cept both of them. sequences for previous actions from the fed- be to determine the source of default rates of Ms. JACKSON-LEE of Texas. Great. eral government. student loans. Then I will not add anything to it The only logical solution to this ethical di- The Microcomputer Technology Institute lo- other than to say the one I was speak- lemma for both the Department of Education cated in the City of Houston provides tech- ing about originally was 29, and that and our small colleges and universities, is to nology educations to residents of the 18th was distressed institutions, and that is allow a third-party consultant to advise the in- Congressional District which I represent. the opportunity to use a third party stitution about its needs and concerns, if they Eighty-seven students from my Congressional consultant. Is that the gentleman’s un- so desire. This way, a college or university district were included in the Cohort for Fiscal derstanding? can begin steps to correct any procedural mis- year 1993. Of that number, 54 were adversely Mr. GOODLING. Mr. Chairman, the takes they may be making, without experienc- affected by what appeared to be improper gentlewoman had said 29, but her dis- ing the unfair possibility of facing future De- servicing of their loans by one of the lender/ cussion was on 27. partment of Education penalties. We must not guarantor units used by the Microcomputer Ms. JACKSON-LEE of Texas. Right. punish those who sincerely need our help, but Technology Institute during that period. The Mr. GOODLING. And we are going to encourage them to make their institution the remaining 33 students did much better, their accept both 27 and 29. very best that it can be. So I urge you to sup- loans having been serviced by a different Ms. JACKSON-LEE of Texas. And 29 port this amendment to level the playing field lender/guarantor combination, which resulted was on distressed institutions that had for our many distressed institutions of higher in a cohort default rate approximately one-third to do with using a third party consult- learning in need of comprehensive assistance. that of the first group. ant. The CHAIRMAN. The question is on It is evident that the way and manner that Mr. GOODLING. Yes. the amendment offered by the gentle- loans are serviced can and will affect certain Ms. JACKSON-LEE of Texas. And the woman from Texas (Ms. JACKSON-LEE), students ability to pay back the loans as well gentleman will accept that one and 27. as modified. as the resultant cohort default rate assigned to Mr. GOODLING. Right. The amendment, as modified, was an institution. Ms. JACKSON-LEE of Texas. All agreed to. If Microcomputer Technology Institute had right, Mr. Chairman. I thank the gen- placed all of its students loans with the first AMENDMENT NO. 27 OFFERED BY MS. JACKSON- lender that had a high default rate then its po- tleman. LEE OF TEXAS Mr. Chairman, I rise today in support of my tential default rate could have been greater Ms. JACKSON-LEE of Texas. Mr. than 40%Ðdefining Microcomputer Tech- amendment to H.R. 6, the Higher Education Chairman, I offer an amendment. Amendments of 1998, which would allow dis- nology Institute as a bad school for the pur- The CHAIRMAN. The Clerk will des- pose of Department of Education approval of tressed institutions that are already provided ignate the amendment. for in the text of this bill, the opportunity to uti- Federal Student Loans. The text of the amendment is as fol- Currently, under the Department of Edu- lize a third party consultant, if they so desire, lows: to conduct their administrative, fiscal and tech- cation rule, if the borrower made even a single Amendment No. 27 offered by Ms. JACKSON- nical assistance. This addition is not simply payment on the loan, the default can not be LEE of Texas: about the fact that a third party consultant, due to improper servicing, no matter how defi- Page 136, line 19 add the following new sec- cient the servicing has been. specifically trained and prepared to offer this tion: kind of assistance, will generally provide a Lending institutions and guarantors may ac- TITLE IV—GUARANTY AGENCY complish servicing in a wide variety of ways higher level of quality and performance than REFORMS from those which do an excellent job of pro- an advisor assigned by a federal agency to SEC. 413. GUARANTY AGENCY REFORMS. viding payment coupons, and reminder calls to consult an institution of higher education, but Directs the Secretary to conduct a study those which rely on a letter serving notice that there are serious ethical issues at play here to investigate to what extent the actions of repayment of a loan is due. as well. the lenders and the guarantors impact upon I would contend that the level of repayment A Department of Education official that is the default rates of student borrowers as it is directly related to the due diligence of the assigned to consult a college or university relates to the servicing of the loans or the loan, because the effort put into generating about possible improvements in their adminis- due diligence of the loan. payments once a student has concluded their trative or fiscal management procedures is not Ms. JACKSON-LEE of Texas. Mr. education is of vital importance in securing re- only charged to improve the quality of the col- Chairman, because of the kindness of the gentleman from Pennsylvania (Mr. payment. lege's or university's procedures, but as well, I believe that we should not let this issue GOODLING) the gentleman from Michi- they are required to report any violations of continue without study because the results of gan (Mr. KILDEE) the gentleman from federal law or regulations conducted by the high loan default rates are penalties to the Missouri (Mr. CLAY) and others, I will college/university that they observe. It is one educationally institution. thing for our larger colleges and universities be brief on this. There are many factors that may contribute with seemingly unlimited resources to hold to This, again, has to do with guarantee to student loan default rates, but without this this high standard of review, but it is highly un- agency reforms which is to allow the study there will be no way to determine if likely that a Harvard or Yale or a University of Secretary of Education to conduct a more should or could be done to reduce the Texas, even, would ever need fiscal, adminis- study to determine if the actions and number of loan defaults. trative or technical assistance from the Depart- guarantors of student loans impact de- Congress recognized the responsibility of ment of Education. fault rates. Simply, this provides us lenders and guaranty agencies when the High- No, it will be our smaller colleges and uni- with information; and, as I said earlier er Education Amendments of 1992 amended versities that will be requesting help from the in my comments, this helps to avoid the Higher Education Act of 1965 to require government, and they often make mistakes in some of the dilemma that we face with the Department to calculate and publish cohort their procedures and policies that they need default rates. Let us find out why, let default rates for original lenders, current hold- not be penalized for by the very group that us try to improve it, and let us insure ers, and guaranty agencies. they are requesting help from. But the Depart- that student loans remains a viable Congress should pursue its interest in stu- ment of Education's officials have an ethical part of our educational process. dent loan defaults with a study to learn what mandate to report any infractions that they ob- With that, Mr. Chairman, I ask my if any thing could be done to improve student serve whether they are done by omission or colleagues to support this amendment repayment rates. In Fiscal Year 1995 of the by commission. On the other hand, however, that can only help to enhance our edu- 7,644 schools reviewed with a total of a valid technical argument can be made by cational system for higher education. 1,918,453 borrowers there were a total of our smaller colleges and universities against Mr. Chairman, I rise to offer the following 199,346 defaults. Department of Education consultation. Essen- amendment to H.R. 6, the Higher Education I ask my colleagues to join me in support of tially, why should a college or university be Amendment of 1998. this important amendment. forced to take into counsel a representative This amendment would result in a study to The CHAIRMAN. The question is on from a group that has an oversight relationship determine to what extent the actions of the the amendment offered by the gentle- with them? It makes no sense. Our small col- lenders and the guarantors impact upon the woman from Texas (Ms. JACKSON-LEE). April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2579 The amendment was agreed to. survive in this particular competitive he might be pacified by the creation of a AMENDMENT NO. 30 OFFERED BY MS. JACKSON- climate. ``Negro'' university that was also funded by the LEE OF TEXAS I would hope that the point made State. So in 1947, the Texas State University Ms. JACKSON-LEE of Texas. Mr. about Texas Southern University is for Negroes was created, and in 1951, after Chairman, I offer an amendment. that it is trying to correct its defi- Sweatt's victory in the Supreme Court, the uni- The CHAIRMAN. The Clerk will des- ciencies, that it is a valuable institu- versity's name was changed to Texas South- ignate the amendment. tion and that, hopefully, we would be ern University. The text of the amendment is as fol- able to agree with the fact that an in- And even though Texas Southern's man- lows: stitution such as Texas Southern Uni- date from the State was to provide ``courses equivalent'' to those provided by other state- Amendment No. 30 offered by Ms. JACKSON- versity needs to be preserved. LEE: Mr. Chairman, I ask the gentleman supported universities, over the last 4 dec- Page 270, after line 16, insert the following from Pennsylvania, as he responds to ades, the University has been consistently un- new section: me, I may want to have this amend- derfunded. This open secret culminated in SEC. 480. RELIEF FROM OBLIGATION. ment withdrawn, and I would like to 1981 when the Office of Civil Rights found that To the extent authorized in advance in an have enough time to be able to speak the State of Texas was operating ``a dual and appropriation Act, the Secretary may, in on that point. unequal system of higher education''. The settlement of claims found or arising under Mr. GOODLING. Mr. Chairman, will bottomline is that for too long, our small col- audits and program reviews under title IV of the gentlewoman yield? leges and universities have been treated like the Higher Education Act of 1965, forgive the ``unwanted stepchildren'' by our state funding obligations to pay such claims of Texas Ms. JACKSON-LEE of Texas. I yield Southern University relating to the adminis- to the gentleman from Pennsylvania. agencies. Despite all of this, TSU has become tration of programs under such title, subject Mr. GOODLING. Mr. Chairman, I was an institution that enrolls students of all racial, to such terms and conditions as Secretary under the impression that the gentle- religious, cultural, and ethnic backgrounds may require with respect to conduct of pro- woman was going to withdraw this from Texas, the nation, and the world. It is grams under such title on and after the date amendment. more than just a collection of students, it is a of enactment of this Act. Ms. JACKSON-LEE of Texas. And I conduit between cultures, races and lifestyles; Ms. JACKSON-LEE of Texas. Mr. am, Mr. Chairman. truly a constant source of viable political, civic, Chairman, simply, my amendment Mr. GOODLING. Of course, the major and business leaders for the Greater Houston deals specifically with concerns of an reason is we have already had four re- community. So why not help our small col- institution that has a great history in quests similar, and we have a pay-go leges and universities like TSU? our community. Texas Southern Uni- problem, and so they will have to deal These institutions need our technical assist- versity was a State or is a State insti- with the secretaries to try to get it all ance and long-term financial support in order tution founded in 1948. It was founded straightened out. to encourage greater institutional stability, a on the basis of students in Texas, Afri- Ms. JACKSON-LEE of Texas. Mr. trademark of our larger colleges and univer- can Americans, not being allowed to go Chairman, I will take the gentleman’s sities. Today, I ask for only Texas Southern to the white institutions in Texas out remarks as a positive. They will have University, because I recognize that this for- of segregation. And over the years to deal with the secretary. It certainly giveness from financial obligation must not be Texas Southern University has edu- does not speak against the historical abused. But as special and worthwhile cases cated a high degrees of our phar- nature of Texas Southern University, may arise, like this one, we should not, we macists, our lawyers, our educators. In but we are in the process of doing that. can not, we must not, shrink from our respon- fact, Texas Southern University has We hope that we will have positive re- sibility to help those institutions of higher educated most of the teachers in the sults, and I was hoping to get relief learning that need us most. We are not forgiv- State of Texas. here on the floor of the House, and I re- ing the debt of a ``fat cat'', multinational cor- It particularly serves a significant spect the chairman. poration; quite to the contrary, we are setting number of low-income minority stu- Mr. Chairman, I rise today in support of my forth an honorable act of absolution to an insti- dents in Texas. It trains a significant amendment to forgive the debt obligation of tution that genuinely needs our help. Simply percentage of the State’s legal and Texas Southern University to the United stated, we are allowing tens of thousands of pharmaceutical students as well as it States Department of Education incurred as a children the opportunity to maximize the po- trains a huge number of our Hispanic result of difficulties that arose in the Adminis- tential; to someday realize their dreams. For attorneys in the State of Texas. tration of their Title IX Student Financial Aid this reason, above all, I ask all of my col- Texas Southern University has his- program. This amendment, Mr. Chairman, leagues to support this amendment, and pre- torically been underfunded by the seeks only to give the same protections to serve the sacred gift of education. Mr. Chairman, I ask unanimous con- State of Texas. That is something that some of our smaller institutions of higher sent to withdraw the amendment. we are trying to work on. However, learning, which desperately need financial and The CHAIRMAN. Is there objection this has resulted in its reduced ability technical assistance from the Department of to the request of the gentlewoman to marginize many of its internal sys- Education, that the Department of Commerce from Texas? tems, some of them so very important and the Small Business Administration cur- There was no objection. to keeping the appropriate or the kinds rently give to our small and disadvantaged The CHAIRMAN. The amendment is of records necessary in this fast-paced businesses. Essentially, the relationship is no withdrawn. economy. As a result of this historical different. AMENDMENT NO. 59 OFFERED BY MR. SOUDER underfunding, it has not been able to Our small colleges and universities in this Mr. SOUDER. Mr. Chairman, I offer maintain sufficient staff to provide country are a valuable resource in giving cer- an amendment. total administrational support that is tain people an opportunity to receive an un- The CHAIRMAN. The Clerk will des- necessary. dergraduate education that might not other- ignate the amendment. Problems created by prior inadequate wise be able to do so. A prime example of The text of the amendment is as fol- funding have been identified and are in one of these colleges and universities is lows: the process of being resolved, currently Texas Southern University in Houston, Texas. Amendment No. 59 offered by Mr. SOUDER: negotiating with the Department of Texas Southern University, or TSU as it is Page 237, strike lines 4 through 10 and in- Education to resolve its prior defi- popularly called, was founded as a com- sert the following: ciencies and to identify such defi- promise in the settlement of a lawsuit between ‘‘(2) REHABILITATION.—A student whose eli- ciencies and result in a settlement. a man named Herman Sweatt and the Univer- gibility has been suspended under paragraph My amendment acknowledges the (l) may resume eligibility before the end of sity of Texas. Sweatt, the plaintiff in the fa- the period determined under such paragraph historical role that Texas Southern mous 1950 Supreme Court case of Sweatt v. if the student satisfactorily completes a drug University has and would ask that we Painter, was fighting the Texas Constitutional rehabilitation program that complies with would, if my colleagues will, forgive provision which mandated separate treatment such criteria as the Secretary shall prescribe any settlement that might come about of Blacks and Whites, so that he might be for purposes of this paragraph and that in- so that Texas Southern University able to attend the University of Texas Law cludes two unannounced drug tests. might move forward, establishing a School. In the midst of Sweatt's four year long Mr. SOUDER. Mr. Chairman, my more proper procedure and as well to protracted legal battle, state officials thought amendment is very simple. On page 237 H2580 CONGRESSIONAL RECORD — HOUSE April 29, 1998 it strikes lines 4 through 10 and inserts percent of the principles said they were The amendment was agreed to. the following: Under rehabilitation, a drug-free; 46 percent of the teachers. The CHAIRMAN. Are there further student whose eligibility has been sus- But 76 percent of the students said that amendments to title IV? pended under paragraph 1 may resume their school was not drug-free. They AMENDMENT NO. 18 OFFERED BY MRS. CLAYTON eligibility before the end of the period understand they are at risk when they Mrs. Clayton. Mr. Chairman, I offer determined under such paragraph if the were asked, 17-year-olds, what they an amendment. student satisfactorily completes a drug thought their greatest problem was. The CHAIRMAN. The Clerk will des- rehabilitation program that complies Drugs were not seen as much of a prob- ignate the amendment. with such criteria as the Secretary lem, as their major problem, as all the The text of the amendment is as fol- shall prescribe for purposes of this other issues combined. lows: paragraph and that includes two unan- Now this suggests that our children Amendment No. 18 offered by Mrs. CLAY- nounced drug tests. know they are at risk, and we need to TON: The addition to the underlying bill is take some steps to make sure they are Page 248, line 4, strike ‘‘and’’; on line 10, that it includes 2 unannounced drug not in danger. strike the second period and insert ‘‘; and’’, This amendment, to go through some and after line 10 insert the following: tests. (7) by adding at the end the following new This amendment has no estimated of the history, has been in our bill be- paragraph: drug spending, unless, of course, some- fore coming through the House, the full ‘‘(23) The institution will distribute to body would fail the drug test and then, underlying amendment that came each student, during registration for enroll- while that is not our goal, it would ac- through committee before this adjust- ment in its instructional program, the mail tually save money. But our goal is to ment, and my colleague and friend, the voter registration application form described make sure that, actually, the students gentleman from New York (Mr. SOLO- in section 9(a)(2) of the National Voter Reg- MON) has been the pioneer and the lead- istration Act of 1993, unless the student, in are clean when they come back. writing, declines to receive such form.’’. Now let me go through the history of er with this. He is a great American, Mrs. CLAYTON. Mr. Chairman, this how this got in the main bill and then and I am going to miss him, and many is an amendment to allow that college discuss particularly my change which I others are. He has been a crusader for students, as they begin their career as hope will be considered a friendly the values that made this country college students, to have the oppor- amendment and can be supported. It is great. tunity to begin their careers also as not general drug testing. It is not test- He had this in the Higher Ed Reau- citizens participating in our great de- ing of anyone other than people who thorization bill in 1992. We lost it in mocracy. As my colleagues well know, have been convicted of drug use and are conference, and we are coming back the ages between 18 and 24 happened to now under this bill going through drug again with the underlying treatment be the lowest rate of participation. All rehab and making sure they are actu- amendment in the beginning, and let Americans really should be ashamed at ally clean. me explain what the underlying But I want to go through the actual amendment does: the rate we are participating but, sim- epidemic that we are facing. We have a One loses their taxpayer subsidized ply put, this allows a simple access to major crisis in this country, and the loan for 1 year for first offense, 2 years a college student coming to register to for their second offense and indefi- question is are we serious about it or also be able to register to vote. nitely for the third. If they sell drugs, not. And this bill has an important b 2245 they get suspended for 2 years for a first step, and I would like to just re- first offense and indefinitely on a sec- To our knowledge, this does not re- fine this a little bit more. It is easy for ond offense. quire any Federal funds, so it should us to criticize Mexico; it is easy for us The point here is not to get people not be a question about the funding of to criticize Columbia. The question is, out of college. That is why we have the this. are we really committed in this coun- treatment program and then they come This amendment simply addresses ac- try? back in. We want to get people cess and opportunity. Currently, the The Chronicle of Higher Education, rehabbed so they can learn. But the Motor Voter registration allows for March 21, 1997, states that crime data problem here is we need to make sure anyone to register at a library. It sim- from 489 of the largest colleges and uni- not just that they are going through ply means that the Board of Elections versities in this country indicate that treatment programs and insurance of those particular cities will send this drug arrests on college campuses companies can make a lot of money information or registration form to the jumped by close to 18 percent in 1995 and treatment programs can make a colleges. when they have the data in the fourth lot of money, but that, in fact, people This is not a partisan amendment; consecutive year with a double digit in- are cured. this does not have added costs. This is crease. By comparison, all other This can be done, quite frankly, fast- simply a way for college students to crimes, including murder, robbery, ag- er than the suspension period. If they participate in the democracy. gravated assault, burglary, vehicle successfully complete a rehab program Mr. Chairman, with that, I will yield theft and violations of weapons laws and they get through a drug test that to the gentleman from Pennsylvania declined. So it is clear in our univer- is clean, they are back in school. (Mr. GOODLING). sities we have had drug use as an in- I have no desire to eliminate any- Mr. GOODLING. Mr. Chairman, I am creasing problem. This 18 percent jump body’s opportunity to climb out of the going to say the same thing that the is even more troubling when you con- situation they are in to advance their gentleman from California (Mr. sider that those are the kids that get career, but the best way to do that is MCKEON) was told to say, which is the caught. to make sure one is clean of drugs. And same thing that he mentioned. According to this same article, re- I believe that this amendment will ac- We are accepting this amendment searchers at the University of Michi- tually make the underlying amend- this evening with the understanding gan found that 33.5 percent of the col- ment that we had in committee even that if it creates too much heartburn, lege students surveyed in 1995 had used stronger and put teeth in that, and I we will discuss it in conference. illegal drugs within that year up 2.1 hope that it can be supported by all Mrs. CLAYTON. Mr. Chairman, re- percent from 1994 and up even further sides. Because, once again, I want to claiming my time, we appreciate the from an earlier survey. say it is not a general testing amend- gentleman’s willingness to accept the I have recently seen the survey ment; it is only for people who have amendment. study, and it included 17-year-olds who been convicted and lost their student The CHAIRMAN. The question is on are just about to head to college. They loan. the amendment offered by the gentle- are seniors in high school, and in there Mr. GOODLING. Mr. Chairman, I rise woman from North Carolina (Mrs. two-thirds said that they knew where in support of the amendment offered by CLAYTON). they could get marijuana within a day, the gentleman from Indiana. The amendment was agreed to. and 44 percent within an hour or less, The CHAIRMAN. The question is on AMENDMENT NO. 16 OFFERED BY MR. ANDREWS that our schools are, in fact, not drug- the amendment offered by the gen- Mr. ANDREWS. Mr. Chairman, I offer free even in high school. Thirty-seven tleman from Indiana (Mr. SOUDER). an amendment numbered 16. April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2581 The CHAIRMAN. The Clerk will des- gram or the bank-based guarantee loan Mr. McKEON. Mr. Chairman, I want ignate the amendment. program, they are fully aware of their to thank the gentleman from New Jer- The text of the amendment is as fol- right to have all of their loans consoli- sey, Mr. ANDREWS, for this amendment. lows: dated into the Department of Edu- I think it does strengthen the bill, as Amendment No. 16 offered by Mr. AN- cation and then converted through the others do, and I would be happy to sup- DREWS: income-sensitive option. port it. Page 164, after line 25, insert the following What this means is that a young man Mr. ANDREWS. Mr. Chairman, I new subsection: or a young woman who graduates with thank the gentleman. (t) NOTICE OF AVAILABILITY OF INCOME-SEN- a significant debt, with a $20,000 or Mr. FOX of Pennsylvania. Mr. Chair- SITIVE REPAYMENT OPTION.— $30,000 or $40,000 debt, who chooses to man, I move to strike the last word, (1) AMENDMENT.—Section 428 is further go into a job or profession, or must go and I rise in support of the Andrews amended by adding at the end the following new subsection: into a job or profession that earns a amendment. ‘‘(o) NOTICE OF AVAILABILITY OF INCOME- lower salary will have the opportunity I believe this is certainly a key issue SENSITIVE REPAYMENT OPTION.—At the time to make that choice, will not be com- for this Congress. When I speak to peo- of offering a borrower a loan under this part, pelled to choose between pursuing the ple from my district, they always talk and at the time of offering the borrower the highest and best education they can about how can we help assist students option of repaying a loan in accordance with get or accepting a job that they do not in need who want to have college loans this subsection, the lender shall provide the wish to pursue. and grants. Students frankly across borrower with a notice that informs the bor- I think this is a sensible amendment. America want to make sure they rower, in a form prescribed by the Secretary I believe it will encourage people to achieve the American dream by com- by regulation— borrow prudently, but give them an op- ‘‘(1) that all borrowers are eligible for in- munity service, by helping their coun- come-sensitive repayment through loan con- portunity to repay their loan on a fair try. If they cannot get the college loan solidation under section 428C; and reasonable basis. It is a way to or grant, then they may be foreclosed ‘‘(2) the procedures by which the borrower deal with the burgeoning problem of from higher education just because we may elect income-sensitive repayment; and too much debt upon graduation. in Congress did not take advantage of ‘‘(3) where and how the borrower may ob- Mr. Chairman, I yield to my friend, the Andrews amendment. tain additional information concerning in- the gentleman from New Jersey (Mr. By seizing the moment here tonight come-sensitive repayment.’’. PASCRELL), who has proposed legisla- in a bipartisan fashion, we are able to (2) CONFORMING AMENDMENTS.— tion that is very similar in concept to work with the gentleman from New (A) Section 428(b)(1)(E)(i) is amended by in- this. He accomplishes this goal by ex- serting before the semicolon the following: Jersey (Mr. ANDREWS) and others to ‘‘or of repaying the loan in accordance with tending the period of time that people make sure that the vision that we have an income-sensitive repayment schedule of- can pay back their loans, and I believe for America, to make sure our young fered pursuant to section 428C’’. it is very much in sync with this idea. people have the chance, through this Mr. PASCRELL. Mr. Chairman, I be- (B) Section 485(b)(1)(A) is amended— flexible system, to be able to have lieve that the amendment of the gen- (i) by striking ‘‘and’’ at the end of clause more college loans and grants avail- (i); tleman is right on target. One of the able, and that is certainly the idea of (ii) by striking the period at the end of largest and most severe problems fac- clause (ii) and inserting ‘‘; and’’; and why people sent us to Congress. ing college students is an ever-mount- So I ask my colleagues to unani- (iii) by adding at the end the following new ing debt. When I look at the students clause: mously support it. ‘‘(iii) the information required to be dis- in my own State and how that debt has Mr. ANDREWS. Mr. Chairman, will closed by lenders pursuant to section increased over the past several years, the gentleman yield? 428(o).’’. moving up to close to $13,000 on the av- Mr. FOX of Pennsylvania. I yield to Mr. ANDREWS. Mr. Chairman, the erage, and by another 2 years, that the gentleman from New Jersey. purpose of this amendment is to help debt will increase to perhaps a little Mr. ANDREWS. Mr. Chairman, I deal with the very real problem of peo- bit more than $20,000. I think that the would like to thank my friend from ple who graduate from school with a indirect loan program to those stu- Pennsylvania for his support. I also dents who are not taking advantage of significant student loan debt. I think wanted to make special note of the co- the direct loans, 10 years is certainly we widely agree that the best solution sponsorship of the gentleman from Wis- questionable at this time. is to try to find a way to moderate the consin (Mr. PETRI) of this amendment I am not offering an amendment, Mr. and thank him for his help on it. cost of higher education. I think there Chairman. What I would like to do is in are many things we have in this bill Mr. FOX of Pennsylvania. Mr. Chair- conference, if it is possible with the man, reclaiming my time, the fact is that begin to do that. The second best leadership, to consider the possibility solution is more scholarship aid so that this kind of amendment is what of extending from 10 to 25 years those the American vision has been working more people are able to earn and win indirect loans. If we do not, then I scholarships, whether based on merit on where it is bipartisan, where it think that we are in jeopardy for those shows that across the aisle when it or need. students who graduate who want to comes to our children, we can work to- We are still faced with the reality, take on some noble service like teach- gether for education and for oppor- though, that many students are re- ing or social work or joining the Peace tunity. quired to borrow in order to finance Corps, that becomes impossible if one their education. I believe that it is I ask again that my colleagues sup- has to pay that loan off, that debt in 10 port this wholeheartedly. therefore imperative that we try to years. I hope we could extend it to 25 find ways that make that borrowing The CHAIRMAN. The question is on years. We have looked at the numbers the amendment offered by the gen- easier for students and their families on it and I think it is very doable. This tleman from New Jersey (Mr. AN- to deal with. will allow students more flexibility in One such way is to encourage the use DREWS). their repayment schedules and make it The amendment was agreed to. of income-contingent or income-sen- easier for them to both adjust to the AMENDMENT NO. 15 OFFERED BY MR. ANDREWS sitive loans. In short, this concept working world and take low-paying, Mr. ANDREWS. Mr. Chairman, I offer means that one’s obligation to pay public service-oriented jobs. one’s loan back is based in large part I have asked the students in my dis- an amendment No. 15. The CHAIRMAN. The Clerk will des- upon their income, upon their ability trict about this, Mr. Chairman. They ignate the amendment. to pay. So the less one makes, the less support this idea and I believe it is best The text of the amendment is as fol- of an obligation one has to pay, but as for them, best for education, and best lows: their income rises, so does their obliga- for America. tion to pay. Mr. ANDREWS. Mr. Chairman, re- Amendment No. 15 offered by Mr. AN- DREWS: This is the first of 2 amendments I claiming my time, I yield to the gen- Page 163, strike out lines 16 and 17 and in- am going to offer on this subject. This tleman from California (Mr. MCKEON), sert in lieu thereof the following: one makes it clear that whether stu- the chairman of the subcommittee on (p) LENDERS-OF-LAST-RESORT.—Section dents are under the direct loan pro- this issue. 428(j)(3) is amended— H2582 CONGRESSIONAL RECORD — HOUSE April 29, 1998 (1) in subparagraph (A)— hard to avoid a disaster, and I am hope- award increased Pell grants under this sec- (A) in the heading thereof, by striking ful that our bill will be passed and tion $240,000,000 for fiscal year 1999 and such ‘‘DURING TRANSITION TO DIRECT LENDING’’; signed into law before we hit the wall. sums as may be necessary for each of the 4 (B) by striking out ‘‘during the transition succeeding fiscal years.’’. from the Federal Family Education Loan But I think this makes good sense to make sure that in the event that there Mr. MCGOVERN. Mr. Chairman, the Program under this part to the Federal Di- amendment I offer today provides both rect Student Loan Program under part D of is a disaster, we do have this money the title,’’ and inserting a comma; there available for these lenders of last an incentive and a reward for Pell-eli- (C) by inserting ‘‘designated for a State’’ resort. So I am happy to support the gible students who pursue and achieve immediately after ‘‘a guaranty agency’’; and amendment. academic excellence by graduating in (D) by inserting ‘‘subparagraph (C) and im- Mr. ANDREWS. Mr. Chairman, I the top 10 percent of their high school mediately before ‘‘section 422(c)(7),’’; and thank the gentleman for his coopera- class. Too often we exhort parents and (2) by adding at the end thereof the follow- students, teachers and communities to ing new subparagraph: tion. ‘‘(C) The Secretary shall exercise the au- The CHAIRMAN. The question is on do more, to do better, to do it all, but thority described in subparagraph (A) only if the amendment offered by the gen- we offer few incentives and even fewer the Secretary determines that eligible bor- tleman from New Jersey (Mr. AN- rewards. rowers are seeking and are unable to obtain DREWS). This amendment that I am offering loans under this part, and that the guaranty The amendment was agreed to. today will provide those Pell-eligible agency designated for that State has the ca- AMENDMENT NO. 44 OFFERED BY MR. MCGOVERN students who, against all odds, grad- pability to provide lender-of-last-resort uate in the top 10 percent of their high loans in a timely manner, in accordance with Mr. McGOVERN. Mr. Chairman, I offer amendment No. 44. school class, an achievement benefit its obligations under paragraph (1), but can- for their first two years of postsecond- not do so without advances provided by the The CHAIRMAN. The Clerk will des- Secretary under this paragraph. If the Sec- ignate the amendment. ary education. The amount of that retary makes the determinations described The text of the amendment is as fol- achievement benefit will match the in the preceding sentence and determines lows: amount of the Pell Grant awarded to that it would be cost-effective to do so, the that individual. Amendment No. 44 offered by Mr. MCGOV- Secretary may provide advances under this ERN: For example, Bill Smith graduates in paragraph to that guaranty agency. If the Page 96, after line 7, insert the following the top 10 percent of his high school Secretary determines that guaranty agency new subsection (and redesignate the succeed- class and receives a $900 Pell Grant. does not have such capability, or will not ing subsections accordingly): The achievement benefit that matches provide such loans in a timely fashion, the (f) PELL GRANT INCENTIVES.—Subpart 1 of that award is an additional $900 grant. Secretary may provide such advances to en- part A of title IV of the Higher Education able another guaranty agency, that the Sec- So Bill Smith receives Federal assist- Act of 1965 is amended by inserting after sec- ance of $1,800 for years 1 and 2 of his retary determines to have such capability, to tion 401 (20 U.S.C. 1070a) the following new make lender-of-last-resort loans to eligible section: college education, and his Pell Grant borrowers in that State who are experiencing ‘‘SEC. 401A. PELL GRANT INCENTIVES. continues at $900 for years 3 and 4. loan access problems.’’. ‘‘(a) PROGRAM AUTHORITY.—From the According to the Congressional Re- Mr. ANDREWS. Mr. Chairman, this amounts appropriated pursuant to sub- search Service, over 84,000 young men amendment is an important priority of section (d), the Secretary shall establish a and women nationwide would benefit the Department of Education and the program to increase the Pell grant awards from this achievement award. This administration, and I believe all of us under section 401 during their first two aca- amendment will increase the afford- on both sides of the aisle want to clar- demic years of undergraduate education to ability of a higher education without ify the status of the Lender of Last Re- students who graduate after May 1, 1998, in increasing the debt of students and the top 10 percent of their high school grad- their families. But everyone in this sort program. uating class. I would like to first of all thank the ‘‘(b) AMOUNT OF INCREASE.—The additional Chamber recognizes that we need to in- gentleman from Pennsylvania (Mr. amount of Pell grant that shall be awarded crease grant assistance for higher edu- GOODLING), the chairman of the com- under this section to any student who quali- cation, not just at the Federal level, mittee, and the gentleman from Cali- fies under this section shall be an amount but at the State and local level; not fornia (Mr. MCKEON) and their staffs equal to the amount for which the student is just in the public sector, but from the for their cooperation, and of course the eligible under section 401 (determined with- private sector as well. My amendment out regard to the provisions of this section), gentleman from Missouri (Mr. CLAY), is just one modest proposal to do just except that if the amount appropriated pur- and the gentleman from Michigan (Mr. suant to subsection (d) is less than the that, while encouraging students to KILDEE) and their staffs for their co- amount required to award such additional achieve the very highest academic operation. amounts to all such students, the additional level. The purpose of this amendment is to amount awarded to each such student under This amendment increases the acces- make it clear that under the law, when this section shall be ratably reduced. sibility of a higher education and ex- a student is unable to secure a bank- ‘‘(c) DETERMINATIONS OF ELIGIBILITY.— pands the options of college choice based loan or does not attend a direct ‘‘(1) PROCEDURES ESTABLISHED BY REGULA- available to students and their fami- lending institution, that that student TION.—The Secretary shall establish by regu- lies. This amendment will not alter the lation procedures for the determination of Pell Grant formula or program. Let me has the right under law and under this eligibility of students for increased Pell bill to go to a guarantee agency or grant awards under this section. Such proce- emphasize that again. This amendment other credit facilitators named in the dures shall include measures to prevent any will not affect the Pell Grant program bill as a lender of last resort. secondary school from certifying more than or its funding. It will not penalize Put simply, this is the safety net 10 percent of it’s students for eligibility those Pell-eligible students who do not when all of the other mechanisms fail under this section. graduate in the top 10 percent of their to students not at a direct lending ‘‘(2) COORDINATION WITH NEED ANALYSIS.—In class. Instead, it provides a matching school. If there is a problem obtaining prescribing procedures under paragraph (1), grant, if you will, that would double a bank loan, this is the safety net that the Secretary shall ensure that the deter- the amount of a student’s Pell Grant mination of eligibility and the amount of the assures that man or woman that a stu- increase in the Pell grant award is deter- award should the achievement benefit dent loan is available under the terms mined in a timely manner consistent with become fully funded. and conditions of this law. the requirements of section 482 and the sub- This amendment is endorsed by the It is my understanding that both mission of the financial aid form required by American Council on Education, the sides of the aisle are in accord with section 483. For such purposes, the Secretary Association of Jesuit Colleges and Uni- this objective, and I would be happy to may provide that, for the first of a student’s versities, and many others. yield to the gentleman from California two academic years of eligibility under this Regarding this amendment the Asso- section, class rank may be determined prior (Mr. MCKEON), the subcommittee chair- ciation of Jesuit Colleges and Univer- to graduation, at such time and in such man- man at this time. ner as the Secretary may specify in the regu- sities has stated that this program Mr. McKEON. Mr. Chairman, I want lations prescribed under this subsection. would send the encouraging message to to thank the gentleman again for his ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— students struggling to achieve under amendment. We have been working There are authorized to be appropriated to difficult circumstances that their hard April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2583 work and perseverance will be well re- Mr. Chairman, I submit the following Dr. Flynn remarked, ‘‘On behalf of As- warded. for the RECORD: sumption College, it is my pleasure to com- The American Council on Education AMERICAN COUNCIL ON EDUCATION, mend Congressman MCGOVERN for leading has said that early information about Washington, DC, February 17, 1998. the effort to increase Pell Grants. Pell is the Hon. JAMES P. MCGOVERN, federal government’s largest, most impor- the availability of increased grant as- tant program of need-based financial aid. sistance could have a profoundly posi- U.S. House of Representatives, Washington, DC. More than any other federal program, it tar- tive impact on students’ academic per- DEAR REPRESENTATIVE MCGOVERN: I write gets low and middle-income students. formance and aspirations. to express my interest in and appreciation ‘‘Congressman McGovern’s proposal to cre- No one knows better than low-in- for the bill you are sponsoring, the ‘‘Incen- ate a ‘Double’ Pell Grant for students of high come, college-bound students that the tives for Achievement Through Pell Grants academic achievement is particularly im- cost of an education is often perceived Act,’’ which will establish a program to in- pressive. This proposal simultaneously ad- as a major barrier to the fulfillment of crease Pell Grant awards to students who dresses two important national needs. First graduate in the top 10 percent of their high is the need to make educational opportunity their dreams. We need to do all that we available to all citizens without regard to can to encourage these students, espe- school class. This bill is clear evidence of your commitment to providing greater ac- family wealth. Second is the importance of cially those with exceptional ability cess to higher education for students from encouraging outstanding student achieve- and determination, to strive for their low- and middle-income families. ment. Congressman McGovern’s legislation ultimate potential in higher education Your proposal to provide an incentive to will help to keep the doors of higher edu- and beyond. students with early information about the cation open to students who need financial This amendment will require a sepa- availability of an increased Pell Grant could assistance; it will also reward high school rate appropriation, and in order to be have a profoundly positive impact on stu- students who strive hard, learn more, and dents’ academic performances and aspira- earn better grades. sensitive to the budget constraints in ‘‘Last year, 16 percent of Assumption stu- which we are all working, the amend- tions. This will help to mitigate students’ concern that resources necessary to fund a dents who applied for financial aid were eli- ment includes a provision to rateably postsecondary education are beyond their fi- gible to receive Pell Grants. The average reduce the achievement benefit based nancial reach, and will instead motivate award to these students was $1,500. Those on the appropriations. What this means them to achieve greater academic success. Pell Grants were supplemented by other fed- is that if the full amount to carry out I congratulate you for introducing this in- eral and state loans and grants. And by far, this provision is appropriated, then the novative legislation. I look forward to work- the largest amount of financial aid came to achievement benefit we will match will ing with you as reauthorization of the High- students and their families from the College itself. The system I am describing, therefore, be 100 percent, dollar for dollar. er Education Act progresses. Sincerely, is a partnership of colleges, state govern- b 2300 TERRY W. HARTLE, ment, and the federal government. This part- Senior Vice President. nership is essential if we are to continue to However if the appropriations were be a nation of true opportunity. only half the amount needed, then the ASSOCIATION OF ‘‘Congressman MCGOVERN, you are playing achievement benefit would be equal to JESUIT COLLEGES AND UNIVERSITIES, a vital role in the Congress of the United half the amount of the student’s Pell Washington, DC, February 17, 1998. States. At Assumption, we share your view Grant, and so on. Hon. JAMES P. MCGOVERN, that Congress should do more to ensure op- Mr. Chairman I recognize and sup- U.S. House of Representatives, portunity for low and middle-income stu- port current funding priorities in high- Washington, DC. dents. I hope that everyone here today will er education, to resolve the question of DEAR CONGRESSMAN MCGOVERN: On behalf send a message to our congressional leader- ship that the McGovern Bill is important, student loan interest rates, to increase of the Association of Jesuit Colleges and Universities, I want to commend and support not only to Central Massachusetts, but also overall funding for Pell Grants, to es- your initiative in introducing the ‘‘Incen- to higher education nationally. tablish the High Hopes program and so tives for Achievement Through Pell Grants ‘‘Higher education serves several purposes. on. But there will not be another op- Act,’’ for needy students who have dem- As chief academic officer of this liberal arts portunity for 6 years to authorize the onstrated special achievement. college, I am particularly aware of the establishment of this grant benefit. The doubling of the Pell Grant for recipi- humanizing role of a college education. At It is my hope over the next few years, ents who graduate in the top 10% of their Assumption, in reason and in faith, we pre- high school class can provide both an incen- pare citizens. We prepare students for the we might explore this type of achieve- good use of their talents, the responsible ex- ment incentive. And if in fiscal year tive and a reward for those students. This program would send the encouraging mes- ercise of their rights, and the fulfillment of 2000 or 2001, we as a Congress decide to sage to students struggling to achieve under their obligations to others. That is true for fund such an achievement award, then difficult circumstances that their hard work our graduates at work, at home, and in the we need to create its authorization in and perseverance will be rewarded. public square. In that way, too, I am keenly this bill. The new Hope Tax Scholarship Credit and aware of the importance of higher education Mr. Chairman, this amendment is Life-Long Learning Tax Credit assist middle to the future of Central Massachusetts. If we wholly subject to an appropriation. It income families in providing an education are to have a community of hope and eco- for their children. Your program addresses nomic opportunity, we must have a highly breaks no budget authority or spending skilled workforce. The McGovern Bill prom- caps. No one has been more supportive the needs of lower income families. Pell Grants have long been a critical com- ises to keep the doors of higher education of Pell Grants or grant assistance than ponent of federal student financial aid pro- wide open, and thus to further both the noble the gentleman from Pennsylvania grams on our campuses. Our association has and practical ends of our colleges and univer- (Chairman GOODLING), the gentleman consistently worked diligently to preserve sities.’’ from Missouri (Mr. CLAY), or the gen- these and all campus-based programs at the tleman from California (Mr. MCKEON), same time we have significantly increased STATEMENT OF PAUL J. LYNSKEY, DIRECTOR or the gentleman from Michigan (Mr. our own institutional commitment to finan- OF EDCENTRAL, COLLEGES OF WORCESTER CONSORTIUM KILDEE), and I want thank them for cial aid for our students. Your new program their leadership and persistence on this very importantly supplements these efforts, ‘‘Those of us who work with low income rather than replacing them. college bound students know that the cost of issue. Our special thanks to you for this latest an education is often perceived as a major Mr. Chairman, this amendment will example of your leadership, this time in sup- barrier. We need to do all that we can to en- reduce student debt, increase the af- port of deserving and needy students who courage these students especially those with fordability and accessibility of a col- will help create our nation’s future. exceptional ability, to strive for their ulti- lege education, motivate young people Sincerely and gratefully, mate potential in higher education and be- to strive for academic excellence, and CHARLES L. CURRIE, S.J., yond.’’ reassure families that a college edu- President. Mr. GOODLING. Mr. Chairman, I rise cation is not out of financial reach for in opposition to the amendment. ASSUMPTION COLLEGE NEWS .. . DR. CHARLES their determined, hard-working daugh- Mr. Chairman, the gentleman is cor- L. FLYNN, JR. ENDORSES PELL GRANT LEG- ter or son. ISLATION rect when he says it would not take I hope that my House colleagues will WORCESTER.—Dr. Charles L. Flynn Jr., act- from one low-income student and give support this amendment overwhelm- ing president and provost of Assumption Col- to another student because it does call ingly and establish this achievement lege, spoke in support of Congressman James for a separate authorization. However, benefit. J. McGovern’s Pell Grant legislation today. if it got the second authorization, then H2584 CONGRESSIONAL RECORD — HOUSE April 29, 1998 the money would have to come from adding 2.39 percent to the resultant percent, eral cost. I have addressed these con- somewhere if they were going to appro- or (III) or PLUS loans, by adding 3.1 percent cerns and will tell the House that the priate it. to the resultant percent; and proposal actually saves money. This is the problem we get into. The ‘‘(iv) by dividing the resultant percent by Mr. Chairman, for the last 8 years I 4.’’. Presidential Access Scholarship Pro- have been working hard to eliminate gram in 1992 was designed to do just Mr. GORDON. Mr. Chairman, there wasteful spending in the student loan this. Now, it has never been funded. It have been a number of accolades, well- programs making them more efficient has never been funded simply because deserved accolades given to the gen- and effective. The change to commer- every time we raise a Pell Grant by tleman from Pennsylvania (Chairman cial paper will allow lenders to use a $100, it costs $300 million. So I rise in GOODLING), the gentleman from Mis- more efficient means for financing opposition to this amendment for that souri (Mr. CLAY), the gentleman from these loans. This is a common sense reason. California (Chairman MCKEON), and the proposal to ensure the longevity of our The second reason that I would bring gentleman from Michigan (Mr. KIL- student loan program. to the House’s attention is the fact DEE). As I say, those are well-deserved I have had a number of conversations that an A student here may be a B stu- and I just have to say that it is just a with the gentleman from California dent in another school. There is no pleasant experience tonight to see a (Mr. MCKEON), our committee chair- question about that. And, therefore, we constructive committee working on an man, as well as our ranking member, could be rewarding someone who really important issue and their leadership I and I would like to take just a moment is not doing all that well if they were think is making the whole committee to address the gentleman and ask for in this school. But they are in this and the House work together. It is just his view on the commercial paper school so they are doing quite well. hopefully a model that we can follow amendment. And so I would rise in opposition for some more in this body. I hope we Mr. MCKEON. Mr. Chairman, will the those two reasons and remind everyone could do that in the future. gentleman yield? again, if we get a separate authoriza- The amendment that the gentleman Mr. GORDON. I yield to the gen- tion, which this would do, and then the from Pennsylvania (Mr. KANJORSKI) tleman from California. appropriators would happen to say, and I have offered tonight will add Mr. MCKEON. Mr. Chairman, I appre- ‘‘Gee, this does not sound too bad,’’ and greater efficiency to the compromise ciate the opportunity to engage in this they would appropriate, they would that was reached by the Committee on colloquy, and I was thinking back then have to find money elsewhere in Education and the Workforce to ad- many months ago when the gentleman order to do that. And so I rise in oppo- dress the 1998 interest rate problem. If from Tennessee (Mr. GORDON) and the sition to the amendment. nothing is done, the change that is set gentleman from Michigan (Mr. KILDEE) The CHAIRMAN. The question is on to go into effect on July 1 would desta- and I drew many of these people to- the amendment offered by the gen- bilize the student loan program that gether to begin the process on this. tleman from Massachusetts (Mr. has provided $240 billion to students Does the gentleman remember that over the past 30 years resulting in a $25 MCGOVERN). meeting? The question was taken; and the billion increase in the annual volume Mr. GORDON. Yes, sir. Chairman announced that the noes ap- of loans for the Department of Edu- Mr. MCKEON. Mr. Chairman, it has peared to have it. cation, which I fear such a shift to the been an interesting process and it is Department could create a complete Mr. MCGOVERN. Mr. Speaker, I de- good to be together on this part of it as mand a recorded vote. collapse of the student loan system. we are moving this far along on the The CHAIRMAN. Pursuant to House Then no student would be able to get a issue. And it has been a real pleasure Resolution 411, further proceedings on loan. And if a student could not get a working with the gentleman from Ten- the amendment offered by the gen- loan, the interest rate does not matter. nessee. tleman from Massachusetts (Mr. I have concerns about the increasing I want to thank the gentleman for volatility of the current and proposed MCGOVERN) will be postponed. his efforts to find the most efficient Are there further amendments to mechanism for determining the loan index for student loan interest rates. I title IV? interest rates, the 91-day T bill. As we think it is clear to everyone that in- all know, the budget is becoming bal- dexing interest rates for these loans to AMENDMENT NO. 25 OFFERED BY MR. GORDON anced and we are looking ahead to a the 10- or 20-year bond rate just does Mr. GORDON. Mr. Chairman, I offer surplus. This has caused a reduction in not work. I believe we need to ensure an amendment. the issuance of the 91-day T bill by the access to loans while reducing interest The CHAIRMAN. The Clerk will des- Treasury. In fact, the amount of 91-day rates to students basing those loans on ignate the amendment. T bills auctioned weekly has declined the most efficient index. The text of the amendment is as fol- 56 percent over the past year. This vol- As we move towards conference, I am lows: atility creates tremendous financial committed to working towards the in- Amendment No. 25 offered by Mr. GORDON: risk. clusion of the most efficient index and Page 154, beginning on line 5, strike sub- Mr. Chairman, this amendment examining commercial paper within paragraph (F) through page 155, line 19, and would change the basis for the student insert the following: that context as part of the conference ‘‘(F) Subject to paragraph (4), the special loan interest rates from the 91-day T report. allowances paid pursuant to this subsection bill to an index which is a large and Mr. KILDEE. Mr. Chairman, will the on loans made on or after July 1, 1998 for growing source of short-term financ- gentleman yield? which the applicable interest rate is deter- ing, 3-month commercial paper. And Mr. GORDON. I yield to the gen- mined under section 427A(a) shall be com- though we would make this change, the tleman from Michigan. puted— rate paid by the students and returned Mr. KILDEE. Mr. Chairman, I too am ‘‘(i) by determining the bond equivalent to the lenders would be equal to the interested in looking at commercial rate of the average of the quotes as reported committee solution in this bill. Let me paper as a possible index for student by the Federal Reserve of the 3-month com- mercial paper (financial) rate in effect for repeat, the interest rate and the rate of loan interest rates. Unfortunately, the each of the days in the quarter for which the return would stay the same as they are committee has not had enough time to rate is being determined; in this bill. thoroughly assess the gentleman’s pro- ‘‘(ii) by subtracting the applicable interest This proposal does not hurt anyone, posal. The interest rate compromise is rate on such loan from such applicable bond not students nor the government. All it a delicate one and any changes will equivalent rate; will do is provide a more efficient way have to be carefully studied. ‘‘(iii)(I) for Stafford loans during any pe- for lenders to finance the loans they I, along with the gentleman from riod in which principal need not be paid are making. Commercial paper is a California (Chairman MCKEON), will (whether or not such principal is in fact paid) by reason of provision described in sec- widely used index which many U.S. use the time between now and con- tion 428(b)(1)(M) or 427(a)(2)(C), by adding 1.8 corporations use for short-term financ- ference with the other body to assess percent to the resultant percent, (II) for ing. There has been concern about this the option of using commercial paper Stafford loans during any other periods, by proposal incurring an additional Fed- as the index. April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2585 Mr. GORDON. Mr. Chairman, re- SEC. 417. INCOME CONTINGENT REPAYMENT tion files a joint return for the taxable year claiming my time, I thank the gen- UNDER THE FFEL PROGRAM. on which the annual amount is based, then Part B of title IV is amended by inserting tleman from Michigan and the gen- the annual amount for such individual is de- after section 427A (20 U.S.C. 1077a) the fol- termined under subparagraph (B) by treating tleman from California. With those en- lowing new section: the taxable income of such individual as couraging words, I ask unanimous con- ‘‘SEC. 427B. INCOME CONTINGENT REPAYMENT equal to one-half the taxable income indi- sent to withdraw my amendment. OPTION cated on such joint return. The CHAIRMAN. Without objection, ‘‘(a) AVAILABILITY OF OPTION.— ‘‘(3) CAPITALIZATION OF UNPAID INTEREST.— the amendment is withdrawn. ‘‘(1) INDIVIDUAL LOANS.—An individual who If the amount that any borrower pays as an There was no objection. has only one loan outstanding under this installment under paragraph (2) on a loan part shall, not more than 6 months prior to that is subject to repayment under this sec- The CHAIRMAN. Are there further the date on which the borrower’s first pay- amendments to title IV. tion is less than the interest that has ac- ment is due, be offered by the lender the op- crued since the preceding installment, then AMENDMENT NO. 41 OFFERED BY MR. MCKEON tion of repaying the loan in accordance with the remaining unpaid interest shall be added, Mr. MCKEON. Mr. Chairman, I offer this section. not more frequently than quarterly, to the an amendment. ‘‘(2) MULTIPLE LOANS.—An individual who principal amount of the loan. Such capital- The CHAIRMAN. The Clerk will des- has two or more loans outstanding under ization of interest shall not be deemed to ex- this part may obtain a consolidation loan ceed the annual insurable limit on the ac- ignate the amendment. under section 428C for the purposes of obtain- The text of the amendment is as fol- count of the borrower. ing the option of repaying the loan in ac- ‘‘(c) DISCHARGE OF OBLIGATION.— lows: cordance with this section. ‘‘(1) UNPAID BALANCE REMAINING AFTER 25 Amendment offered by Mr. MCKEON: ‘‘(3) DIRECT LOANS.—An individual who has YEARS.—If the unpaid balance on a loan that Page 161, after line 9, insert the following one or more loans under part D of this title is subject to repayment under this section new subsection (and redesignate the succeed- may obtain income contingent repayment has not been repaid in full at the end of 25 ing subsections accordingly): pursuant to section 455(e). years of repayment, then— (j) DELAY IN COMMENCEMENT OF REPAYMENT ‘‘(4) RESTRICTION OF OPTION TO NEW BOR- ‘‘(A) the Secretary shall repay the holder PERIOD.—Section 428(b(7) is amended by in- ROWERS.—Notwithstanding paragraphs (1) of such loan such unpaid balance and the serting after subparagraph (C) the following through (3), the option of repaying a loan in holder of the loans shall be deemed to have new subparagraph: accordance with this section shall be avail- a contractual right, as against the United ‘‘(D) There shall be excluded from the 6 able only to borrowers who, on the date of States, to receive from the Secretary such months determined under subparagraph enactment of this section, do not have any unpaid balance without administrative delay (A)(i) any period during which the student outstanding balance of principal or interest after the receipt by the Secretary of an accu- was called or ordered to active duty in a re- on any loan made under this part or part D. rate and complete request for payment; and serve component of the Armed Forces of the ‘‘(b) TERMS OF REPAYMENT UNDER OPTION.— ‘‘(B) such payment by the Secretary shall United States.’’. ‘‘(1) LOAN OBLIGATIONS UNDER OPTION.—A be applied to discharge the borrower from loan that is subject to repayment under this any remaining obligation with respect to the Mr. MCKEON. Mr. Chairman, cur- section shall be repaid in installments that— loan. rently a student must begin repayment ‘‘(A) are determined in accordance with ‘‘(2) UNPAID BALANCE.—For the purposes of of his or her student loan six months paragraph (2) for each one year period begin- paragraph (1), the unpaid balance of a loan is after he or she ceases to take classes ning on July 1; and the sum of unpaid principal and unpaid ac- on at least a half-time basis. But a col- ‘‘(B) notwithstanding the note or other crued and capitalized interest, and any fees, lege student serving as a reservist may written evidence of the loan and subpara- such as late charges, assessed on such loan in be called to active duty for more than graphs (D) and (E) of section 428(b)(1), shall accordance with the requirements of this six months, forcing him or her to begin continue to be paid until— part and the regulations thereunder. ‘‘(e) INFORMATION NEEDED FOR COLLEC- repayment. ‘‘(i) the borrower has repaid the principal and any accrued or capitalized interest on TION.— Mr. Chairman, it does not seem fair the loan; or ‘‘(1) ACCESS TO TAXPAYER INFORMATION.— that a student called to serve his or her ‘‘(ii) the remaining obligations of the bor- The Secretary may obtain such information country should be forced to begin re- rower are discharged under subsection (c). as is reasonably necessary regarding the tax- payment, especially when they did not ‘‘(2) CALCULATION OF INSTALLMENTS.— able income of a borrower (and the borrow- leave school by choice. This goes ‘‘(A) INSTALLMENT AMOUNTS.—The total er’s spouse, if applicable) of a loan that is against the whole purpose of the repay- amount that a borrower shall be required to subject to repayment under this section for ment and of the six-month grace pe- pay as installments on a loan of such bor- the purpose of determining the installment caps under subsection (b)(2). Returns and re- riod. rower that is subject to repayment under this section is equal to— turn information (as defined in section 6103 The amendment which I offer, along ‘‘(i) one-fourth of the annual amount deter- of the Internal Revenue Code of 1986) may be with the gentleman from Wisconsin mined under subparagraph (B), in the case of obtained under the preceding sentence only (Mr. KLUG) would allow those student a loan that is repaid in quarterly install- to the extent authorized by section 6103(l)(13) reservists to forgo prepayment while ments; or of such Code. serving on active duty. I urge all Mem- ‘‘(ii) one-twelfth of such annual amount, in ‘‘(2) ADDITIONAL DOCUMENTS.—A borrower bers to support this amendment. the case of a loan that is repaid in monthly of a loan that is subject to repayment under Mr. KILDEE. Mr. Chairman, I move installments. this section and for whom taxable income is unavailable or does not reasonably reflect to strike the last word. ‘‘(B) ANNUAL AMOUNT.—The annual amount for a loan that is subject to repayment under the borrower’s current income, shall provide Mr. Chairman, as the father of two this section is determined for each one year to the Secretary other documentation of in- sons in the military, I find this a very period beginning on July 1 of each calendar come satisfactory to the Secretary. attractive amendment and I support it. year. The annual amount is determined by ‘‘(3) TRANSMISSION OF DATA TO LENDERS.— The CHAIRMAN. The question is on reference to the taxable income of the bor- The Secretary shall, by regulation, establish the amendment offered by the gen- rower for the taxable year ending in the cal- procedures for the transmission of data gath- tleman from California (Mr. MCKEON). endar year preceding the calendar year in ered under (1) and (2) to the lender or holder The amendment was agreed to. which the determination is made. The an- of a loan that is subject to repayment under this section. The CHAIRMAN. Are there further nual amount is determined in accordance with the following table: ‘‘(4) NOTIFICATION TO BORROWERS.—The Sec- amendments to title IV? retary shall establish procedures under AMENDMENT NO. 14 OFFERED BY MR. ANDREWS which a borrower of a loan that is subject to Annual limit Mr. ANDREWS. Mr. Chairman, I offer repayment under this section is notified of the terms and conditions of such loan, in- an amendment. If the taxable income of the borrower Then the annual amount is— The CHAIRMAN. The Clerk will des- is— cluding notification of such borrower— ignate the amendment. ‘‘(A) that the Internal Revenue Service Less than $20,000 ...... 3% of taxable income will disclose to the Secretary tax return in- $20,001–$40,000 ...... 5% of taxable income The text of the amendment is as fol- formation as authorized under section lows: $40,001–$60,000 ...... 7% of taxable income $60,001–$90,000 ...... 10% of taxable income 6103(l)(13) of the Internal Revenue Code of Amendment No. 14 offered by Mr. AN- $90,001–$120,000 ...... 15% of taxable income 1986; and DREWS: $120,001 or more ...... 20% of taxable income ‘‘(B) that if a borrower considers that spe- Page 156, after line 3, insert the following cial circumstances, such as a loss of employ- new section (and redesignate the succeeding ‘‘(C) SPECIAL RULE FOR JOINT RETURNS.—If ment by the borrower or the borrower’s sections and conform the table of contents an individual who is a borrower of a loan spouse, warrant an adjustment in the bor- accordingly): that is subject to repayment under this sec- rower’s loan repayment as determined using H2586 CONGRESSIONAL RECORD — HOUSE April 29, 1998 the information described in subparagraph Mr. Chairman, I am aware of the fact ‘‘demonstrates to the Secretary that diligent (A), or the alternative documentation de- that there are jurisdictional and budg- attempts, including direct contact with the scribed in paragraph (2), the borrower may etary issues that need to be discussed. institution have been made.’’. contact the Secretary, who shall determine I also know there are some substantive (3) NOTICE TO SECRETARY AND PAYMENT OF whether such adjustment is appropriate, in LOSS.—The third sentence of section 430(a) accordance with criteria established by the disagreements, but I did want to get on (20 U.S.C. 1080(a)) is amended by inserting Secretary. the record my adherence to this prin- ‘‘the institution was contacted and other’’ ‘‘(f) DEFINITIONS.—For purposes of this sec- ciple. Again, I express my appreciation after ‘‘submit proof that’’. tion: for the adoption of the basic idea and Mr. KLINK (during the reading). Mr. ‘‘(1) TAXABLE INCOME.—The taxable income amendment in No. 16. of a borrower is determined in the manner Chairman, I ask unanimous consent Mr. MCKEON. Mr. Chairman, will the that the amendment be considered as provided in section 63 of the Internal Reve- gentleman yield? nue Code of 1986. read and printed in the RECORD. Mr. ANDREWS. I yield to the gen- ‘‘(2) TAXABLE YEAR.—The term ‘taxable The CHAIRMAN. Is there objection year’ means the taxable year of a taxpayer tleman from California. to the request of the gentleman from for purposes of subtitle A of such Code.’’. Mr. MCKEON. Mr. Chairman, I want Pennsylvania? Page 204, after line 5, insert the following to thank the gentleman for presenting There was no objection. new section (and redesignate the succeeding his amendment, and withdrawing it, The CHAIRMAN. Is there objection sections and conform the table of contents and we will continue to work on that accordingly): to the modification to the amendment issue. offered by the gentleman from Penn- SEC. 438. INCOME CONTINGENT REPAYMENT Mr. ANDREWS. Mr. Chairman, re- UNDER THE FEDERAL DIRECT LOAN sylvania? claiming my time, I ask unanimous PROGRAM. There was no objection. Section 455(e) of the Higher Education Act consent to withdraw my amendment. of 1965 (20 U.S.C. 1087e(e)) is amended to read The CHAIRMAN. Without objection, b 2315 as follows: the amendment is withdrawn. ‘‘(e) PARALLEL INCOME CONTINGENT REPAY- Mr. KLINK. Mr. Chairman, for my There was no objection. friend, we have taken out the line MENT.— The CHAIRMAN. Are there further ‘‘(1) IN GENERAL.—The Secretary shall offer about the State licensing boards. That amendments to title IV? borrowers under this part the option of re- was the agreement that we had on the paying their loans in the same manner as AMENDMENT NO. 39 OFFERED BY MR. KLINK amendment. This is simply to say that loans that are subject to repayment in ac- Mr. KLINK. Mr. Chairman, I offer an before the loan goes into default that cordance with section 427B. amendment. we should have some communications, ‘‘(2) EXCEPTIONS.—The Secretary shall pre- The CHAIRMAN. The Clerk will des- scribe any regulations necessary to imple- that the school should be notified by ignate the amendment. the guaranty agency. ment the requirements of paragraph (1).’’. The text of the amendment is as fol- Mr. ANDREWS. Mr. Chairman, this Mr. GOODLING. Mr. Chairman, will is the second amendment I am offering lows: the gentleman yield? on the issue of income-contingent or Amendment No. 39 offered by Mr. KLINK: Mr. KLINK. I yield to my friend, the income-sensitive loans. Let me say at Page 164, after line 25, insert the following gentleman from Pennsylvania. new subsections: the outset, and pursuant to my discus- (t) NOTICE TO INSTITUTIONS OF DEFAULTS.— Mr. GOODLING. Mr. Chairman, we sion with the subcommittee staff of the (1) ADMINISTRATIVE AND FISCAL PROCE- accept the amendment. gentleman from California (Mr. DURES.—Section 428(c)(2)(A) is amended by Mr. KLINK. Mr. Chairman, I thank MCKEON), I intend to simply explain striking ‘‘proof that reasonable attempts the gentleman. I always learned that the concept and ask for unanimous were made’’ and inserting ‘‘proof that the in- when the jury starts nodding their consent to withdraw it, based upon the stitution and the State licensing board were heads, you stop talking. assumption we can continue talking contacted and other reasonable attempts The CHAIRMAN. The question is on were made’’ about this basic idea. the amendment offered by the gen- (2) REIMBURSEMENT.—Section 428(c)(2)(G) First, I wish to reiterate my appre- (20 U.S.C. 1078(c)(2)(G)) is amended by strik- tleman from Pennsylvania (Mr. KLINK). ciation for the acceptance of the first ing ‘‘certifies to the Secretary that diligent The amendment was agreed to. amendment on this subject. I think it attempts have been made’’ and inserting AMENDMENT NO. 40 OFFERED BY MR. KLINK gives us an excellent base on which to ‘‘demonstrates to the Secretary that diligent Mr. KLINK. Mr. Chairman, I offer an build. The purpose of this second attempts, including direct contact with the amendment. institution and the State licensing board, amendment is to build on that base by The CHAIRMAN. The Clerk will des- specifying two things. One is that I be- have been made.’’. (3) NOTICE TO SECRETARY AND PAYMENT OF ignate the amendment. lieve that loans under the FFEL pro- The text of the amendment is as fol- gram should also have the income-con- LOSS.—The third sentence of section 430(a) (20 U.S.C. 1080(a)) is amended by inserting lows: tingent loan feature without consolida- ‘‘the institution and the State licensing tion, as this bill would now call for. Amendment No. 40 offered by Mr. KLINK: board were contacted and other’’ after ‘‘sub- Page 177, after line 1, insert the following And second, I believe in a different mit proof that’’. new subparagraph (and redesignate the suc- structure of income-sensitive repay- MODIFICATION TO AMENDMENT NO. 39 OFFERED ceeding subparagraph accordingly): ment. I think there should be a specific BY MR. KLINK (A) by striking ‘‘for the fiscal year for gradation where the student’s income Mr. KLINK. Mr. Chairman, I ask which the determination is made and for the is then tied to a percentage repayment. unanimous consent that the modifica- two succeeding fiscal years’’ and inserting My proposal calls for students mak- tions that we have at the desk be in- ‘‘for the period determined under subpara- graph (D); ing a taxable income of $20,000 or less cluded in my amendment. to pay 3 percent of their income as Page 177, after line 14, insert the following The CHAIRMAN. The Clerk will re- new paragraph (and redesignate the succeed- their repayment. Students making port the modification. $40,000 or less and down to $20,000, to ing paragraphs accordingly): The Clerk read as follows: (3) by adding at the end of paragraph (2) pay 5 percent, and have similar grada- Modification to amendment No. 39 offered the following new subparagraph: tions beyond that. by Mr. KLINK: ‘‘(D) An institution that is ineligible to I believe that when this issue is fully Page 164, after line 25, insert the following participate pursuant to a determination scored by the Congressional Budget Of- new subsection: under paragraph (A) shall be ineligible for a fice, it will show a very, very nominal (t) NOTICE TO INSTITUTIONS OF DEFAULTS.— period beginning with the fiscal year for cost, and yet have a great benefit for (1) ADMINISTRATIVE AND FISCAL PROCE- which the determination is made and ending students as it will permit them to DURES.—Section 428(c)(2)(A) is amended by on the earlier of— repay their loans in rising payments as striking ‘‘proof that reasonable attempts ‘‘(1) the expiration of the two succeeding their incomes rise. I believe another were made’’ and inserting ‘‘proof that the in- fiscal years; or ‘‘(1) the date on which the final cohort de- benefit of this proposal will be a sub- stitution was contacted and other reasonable attempts were made’’. fault rates published with respect to such in- stantial reduction in loan defaults. (2) REIMBURSEMENT.—Section 428(c)(2)(G) stitution are less than the threshold percent- This is because the obligation of the (20 U.S.C. 1078(c)(2)(G)) is amended by strik- age specified in subparagraph (B) for any two student to pay will be more closely tied ing ‘‘certifies to the Secretary that diligent of the three most recent fiscal years for to the ability of the student to pay. attempts have been made’’ and inserting which data are available.’’; April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2587

Mr. KLINK. Again, I really want to The CHAIRMAN. The Clerk will des- (Mr. SPRATT) made earlier this commend both chairmen for the won- ignate the amendment. evening, that some of us have also em- derful work that they have done, and The text of the amendment is as fol- braced, that there is a lingering ques- the ranking members, too. lows: tion as to how this compromise would This is another common sense, I Amendment No. 13 offered by Mr. AN- be paid for. think a good government reform DREWS: I fully respect and appreciate the amendment to the student loan pro- Page 154, line 18 strike ‘‘2.8 percent’’ and long-standing effort that the leadership insert ‘‘2.3 percent’’. gram. I think it will save money. I Page 155, strike lines 2 and 3 and insert the of this committee has made to con- think it will reduce student loan de- following: struct this compromise. It is not my faults and help maintain student ac- paragraph shall be applied by substituting desire to upset it or to be unduly criti- cess to educational resources. ‘1.7 percent’ for ‘2.3 percent.’ cal of it. This amendment is a little more In clause (iv) as amended by the Manager’s I do wish to go on record, though, complex. Currently, an institution of amendment to page 155, lines 12 though 23, that I believe the administration posi- higher education would become ineli- relating to consolidation loans, strike ‘‘for tion is the right one. As we proceed in gible for participation in the student 2.8 percent’, subject’’ and insert ‘‘for 2.3 per- negotiations with the other body and cent’, subject’’. loan program if it has three consecu- the administration, I would hope that tive annual default rates over 25 per- Mr. ANDREWS. Mr. Chairman, this we continue to have an open mind cent. That is very good. There really Congress, working with President Clin- about this. With the intention of with- ton and Vice-President GORE and Sec- has to be some accountability for the drawing the amendment, I would yield retary Riley and the Department of schools that cannot manage their de- to either the full or subcommittee Education, I think has built a laudable fault rates. They should be held ac- chairman at this point. record of achievement in higher edu- countable. Mr. McKEON. Mr. Chairman, if the cation. The Hope Scholarship tax cred- An institution currently can regain gentleman will yield, I would be happy its that were enacted last year are a its eligibility after 2 years if it has one to discuss this just shortly with the matter that is benefiting millions of default rate under 25 percent during gentleman from New Jersey. I wish we families across the country. Virtually that period. I do not think that is real- had the wisdom of Solomon. every family in my district has the op- ly enough incentive for schools to real- Mr. ANDREWS. Does the gentleman portunity to benefit from it in one way ly make a commitment to default man- mean the chairman of the Committee or the other. agement. Working with this committee and on Rules? This amendment would offer another Mr. McKEON. Yes, that is exactly this Congress, Pell grants are at their path for those schools to regain their who I was speaking about. highest level ever. More students are eligibility. If an ineligible institution Mr. Chairman, I wish I could say this benefiting from Pell grants, and those is a perfect number, but we talk about can post two default rates under 25 per- students who benefit are benefiting at banks and we talk about lending insti- cent, it would then regain its eligi- a higher level. bility regardless of the time it has been We have been able to enact and im- tutions, and each of them has a dif- ineligible. I want emphasis put on the prove work-study programs and na- ferent profit margin. Some of them rates, not on the time served. We really tional service and many, many other this will drive out. Some of them will want to bring the rates down. areas. The administration and the Con- be able to stay in. Some we could go to The CBO has scored this amendment gress, I believe, have an exemplary a lower number and still keep some in as having a very minimal cost. Let me record also in the area of student and drive some out. say this for the budget conscious: We loans. Loan default costs have fallen I think what we really need to look think that providing an incentive for precipitously. at is where is the risk. I guess the driv- schools to lower their default rate I think Members of both parties and ing pitfall for me has been we need to would mean better management and this committee deserve a lot of credit protect the students. My concern is, as fewer defaults, which would mean sav- for that, working with the Department we drive banks out of the system, the ings, I believe. This amendment will, in of Education. It is with that context in ones that will get hurt first will be the fact, save money in the long run, and I mind that I think the administration’s students that need the help the most. would urge my colleagues to support it. proposal on the interest rate issue mer- I looked at weighing the risk. If you I understand that the majority, if we its some consideration. put the risk here, if we put the number would withdraw this amendment, I realize that the gentleman from a little bit too high, the risk is that would work with us on this in con- California (Mr. MCKEON) and the gen- some banks will make a little bit extra ference. If that is the case, I would tleman from Michigan (Mr. KILDEE) profit and pay a little bit more taxes; yield to the gentleman from Pennsyl- and the gentleman from Pennsylvania whereas if we put the number too low vania (Mr. GOODLING), the chairman, to (Mr. GOODLING) and other leaders of and drive banks out, some of those stu- see if that is the agreement we have. If this committee have worked to con- dents that rely heavily on this, that we could work with the gentleman in struct a very delicate balance on this are maybe not the 18 or 19-year-old stu- conference on this, I would then with- compromise. For that reason, it is not dents, but there are some that come draw the amendment. my intention to press this matter for a back that have been out in the work- Mr. GOODLING. Mr. Chairman, if the vote at this time. It is, in fact, my in- place and now come back, they are gentleman will yield, we would be very tention to ask for unanimous consent going to community colleges or going happy to work with the gentleman on to withdraw the amendment at the to proprietary schools or going to this. conclusion of these remarks. night school, they really need that Mr. KLINK. Mr. Chairman, I thank But I do believe, and I think that be- loan or they really need that help. the gentleman. He is a gentleman, a lief is shared by many others in this They are the ones I am most concerned scholar, and a great friend from Penn- body, that the administration’s pro- about in this process. sylvania, and I am happy to work with posal of the subsidy number, which is Mr. ANDREWS. Mr. Chairman, re- him. the 91-day T-bill rate plus 1.7 percent claiming my time, I freely acknowl- Mr. Chairman, I ask unanimous con- for in-school interest and 2.3 percent edge and commend both the gentleman sent to withdraw the amendment. for out-of-school interest, is a better from Pennsylvania (Mr. GOODLING), the The CHAIRMAN. Is there objection number. That truly represents the committee chairman, and the gen- to the request of the gentleman from level at which this program could oper- tleman from California (Mr. MCKEON), Pennsylvania? ate efficiently for the lenders, profit- the subcommittee chairman, for mak- There was no objection. ably for the lenders, at a lower cost for ing significant reductions in payments The CHAIRMAN. The amendment is the students, and perhaps most impor- to both lenders and guaranty agencies withdrawn. tantly, at a lower cost for the tax- in this and prior bills. AMENDMENT NO. 13 OFFERED BY MR. ANDREWS payer. They certainly recognize the ability Mr. ANDREWS. Mr. Chairman, I offer I would repeat an admonition that to have efficiencies. We may disagree an amendment. the gentleman from South Carolina about where that efficiency lies, but I H2588 CONGRESSIONAL RECORD — HOUSE April 29, 1998 certainly respect the effort and appre- rules here. I also understand the desire ‘‘(II) a junior or community college; ciate the time. to promote the continuing parity be- ‘‘(iv) which is accredited by a nationally rec- Mr. Chairman, I ask unanimous con- tween the direct loan and guaranty ognized accrediting agency or association deter- mined by the Secretary to be reliable authority sent to withdraw the amendment. loan programs. as to the quality of training offered or which is, The CHAIRMAN. Is there objection With the understanding that this according to such an agency or association, to the request of the gentleman from also is an issue that is open to contin- making reasonable progress toward accredita- Pennsylvania? ued discussion among those of us in tion; There was no objection. this House, the Senate, the Depart- ‘‘(v) which meets such other requirements as The CHAIRMAN. The amendment is ment of Education and the administra- the Secretary may prescribe; and ‘‘(vi) which is located in a State; and withdrawn. tion, it would be my intention to with- ‘‘(B) any branch of any institution of higher The CHAIRMAN. Are there further draw this amendment. education described under subparagraph (A) amendments to title IV? Mr. Chairman, I am happy to yield to which by itself satisfies the requirements con- AMENDMENT NO. 12 OFFERED BY MR. ANDREWS the subcommittee chairman or full tained in clauses (i) and (ii) of such subpara- Mr. ANDREWS. Mr. Chairman, I offer committee chairman at this time. graph. one more amendment listed as No. 12. Mr. McKEON. Mr. Chairman, I gave For purposes of the determination of whether an The CHAIRMAN. The Clerk will des- my speech last time, and I would just institution is an eligible institution under this like to thank the gentleman for his paragraph, the factor described under subpara- ignate the amendment. graph (A)(i) shall be given twice the weight of The text of the amendment is as fol- presentation and for withdrawing his amendment. the factor described under subparagraph (A)(ii). lows: ‘‘(3) LOW-INCOME INDIVIDUAL.—The term ‘low- Mr. ANDREWS. Would the gentleman Amendment No. 12 offered by Mr. AN- income individual’ means an individual from a like to accept the amendment? DREWS: family whose taxable income for the preceding Page 153, before line 13, insert the follow- Mr. McKEON. My colleague heard year did not exceed 150 percent of an amount ing new subsection (and redesignate the suc- me. I thank the gentleman for with- equal to the poverty level determined by using ceeding subsections accordingly): drawing the amendment. criteria of poverty established by the Bureau of ‘‘(b) CONSOLIDATION LOANS.—Notwithstand- Mr. ANDREWS. I appreciate the gen- the Census. ing any provision of subsection (a), with re- tleman’s indulgence. ‘‘(4) FULL-TIME EQUIVALENT STUDENTS.—The spect to any consolidation loan made under Mr. Chairman, I ask unanimous con- term ‘full-time equivalent students’ means the sum of the number of students enrolled full time section 428C for which the first disbursement sent to withdraw the amendment. is made on or after July 1, 1998, the applica- at an institution, plus the full-time equivalent The CHAIRMAN. Is there objection of the number of students enrolled part time (de- ble rate of interest shall, during any 12- to the request of the gentleman from month period beginning on July 1 and ending termined on the basis of the quotient of the sum on June 30, be determined on the preceding New Jersey? of the credit hours of all part-time students di- June 1 and be equal to— There was no objection. vided by 12) at such institution. ‘‘(1) the bond equivalent rate of 91-day The CHAIRMAN. The amendment is ‘‘(5) JUNIOR OR COMMUNITY COLLEGE.—The Treasury bills auctioned at the final auction withdrawn. term ‘junior or community college’ means an in- held prior to such June 1; plus stitution of higher education— Are there further amendments to ‘‘(A) that admits as regular students persons ‘‘(2) 2.3 percent, except that such rate shall title IV? who are beyond the age of compulsory school not exceed 8.25 percent. The Clerk will designate title V. attendance in the State in which the institution Mr. ANDREWS. Mr. Chairman, there The text of title V is as follows: is located and who have the ability to benefit is an issue here as to the interest rate TITLE V—DEVELOPING INSTITUTIONS from the training offered by the institution; ‘‘(B) that does not provide an educational that students pay when they consoli- SEC. 501. ESTABLISHMENT OF NEW TITLE V. program for which it awards a bachelor’s degree date their loans, when they consolidate Title V is amended to read as follows: (or an equivalent degree); and their direct loans in this case. The ‘‘TITLE V—DEVELOPING INSTITUTIONS ‘‘(C) that— question is whether or not the students ‘‘PART A—HISPANIC-SERVING ‘‘(i) provides an educational program of not should pay a blended rate, which is to INSTITUTIONS less than 2 years that is acceptable for full cred- say the rate of all of the loans that he ‘‘SEC. 501. PROGRAM AUTHORIZED. it toward such a degree, or ‘‘(ii) offers a 2-year program in engineering, or she is consolidating, averaged and ‘‘The Secretary shall provide grants and relat- mathematics, or the physical or biological blended in as a weighted average, or ed assistance to Hispanic-serving institutions to sciences, designed to prepare a student to work enable such institutions to improve and expand whether the students should pay the as a technician or at the semiprofessional level their capacity to serve Hispanic and other low- interest rate paid on newly issued di- in engineering, scientific, or other technological income students. rect loans. fields requiring the understanding and applica- I believe that the students should ‘‘SEC. 502. ELIGIBILITY; DEFINITIONS. tion of basic engineering, scientific, or mathe- pay the interest rate on newly issued ‘‘(a) DEFINITIONS.—For the purpose of this matical principles of knowledge. direct loans. I do not believe there is a part: ‘‘(6) EDUCATIONAL AND GENERAL EXPENDI- ‘‘(1) HISPANIC-SERVING INSTITUTION.—The TURES.—For the purpose of this part, the term significant cost consideration here. I term ‘Hispanic-serving institution’ means an in- think that this is effectively a benefit ‘educational and general expenditures’ means stitution of higher education which— the total amount expended by an institution of to students in this way. ‘‘(A) is an eligible institution; higher education for instruction, research, pub- If interest rates in the long term con- ‘‘(B) at the time of application, has an enroll- lic service, academic support (including library tinue to moderate or even drop, as we ment of undergraduate full-time equivalent stu- expenditures), student services, institutional have been fortunate to see in the last 3 dents that is at least 25 percent Hispanic stu- support, scholarships and fellowships, operation or 4 years, I think students should get dents; and and maintenance expenditures for the physical ‘‘(C) provides assurances that not less than 50 plant, and any mandatory transfers which the the benefit of that. I think if rates percent of its Hispanic students are low-income dropped, then students who consolidate institution is required to pay by law. individuals. ‘‘(7) ENDOWMENT FUND.—For the purpose of their loan should get the same kind of ‘‘(2) ELIGIBLE INSTITUTION.—The term ‘eligible this part, the term ‘endowment fund’ means a benefit that homeowners get when they institution’ means— fund that— refinance their home mortgage. ‘‘(A) an institution of higher education— ‘‘(A) is established by State law, by an institu- I understand that there are some ‘‘(i) which has an enrollment of needy stu- tion of higher education, or by a foundation issues of parity between the FFEL Pro- dents as required by subsection (b) of this sec- that is exempt from Federal income taxation; tion; gram and the direct loan program. I ‘‘(B) is maintained for the purpose of generat- ‘‘(ii) except as provided in section 522(b), the ing income for the support of the institution; frankly would like to see those issues average educational and general expenditures of and resolved by giving persons who consoli- which are low, per full-time equivalent under- ‘‘(C) does not include real estate. date an FFEL loan the same low rate graduate student, in comparison with the aver- ‘‘(b) ENROLLMENT OF NEEDY STUDENTS.—For that students who consolidate direct age educational and general expenditures per the purpose of this part, the term ‘enrollment of loans get. I think this parity matter full-time equivalent undergraduate student of needy students’ means an enrollment at an in- should be resolved in favor of the stu- institutions that offer similar instruction; stitution of higher education or a junior or com- ‘‘(iii) which is— munity college which includes— dents rather than the lenders or the ‘‘(I) legally authorized to provide, and pro- ‘‘(1) at least 50 percent of the degree students government. vides within the State, an educational program so enrolled who are receiving need-based assist- Having said that, I understand there for which such institution awards a bachelor’s ance under title IV of this Act in the second fis- are issues respecting the pay-as-you-go degree; or cal year preceding the fiscal year for which the April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2589

determination is being made (other than loans sistance under this part shall submit to the Sec- ‘‘(b) CONTENTS.—An institution, in its appli- for which an interest subsidy is paid pursuant retary such enrollment data as may be nec- cation for a grant, shall— to section 428), or essary to demonstrate that it is a Hispanic-serv- ‘‘(1) set forth, or describe how the institution ‘‘(2) a substantial percentage of students re- ing institution, along with such other informa- will develop, a comprehensive development plan ceiving Pell Grants in the second fiscal year pre- tion and data as the Secretary may by regula- to strengthen the institution’s academic quality ceding the fiscal year for which determination is tion require. and institutional management, and otherwise being made, in comparison with the percentage ‘‘(b) APPLICATIONS.—Any institution which is provide for institutional self-sufficiency and of students receiving Pell Grants at all such in- determined by the Secretary to be a Hispanic- growth (including measurable objectives for the stitutions in the second fiscal year preceding the serving institution (on the basis of the informa- institution and the Secretary to use in monitor- fiscal year for which the determination is made, tion and data submitted under subsection (a)) ing the effectiveness of activities under this unless the requirement of this subdivision is may submit an application for assistance under title); waived under section 522(a). this section to the Secretary. Such application ‘‘(2) set forth policies and procedures to en- ‘‘SEC. 503. AUTHORIZED ACTIVITIES. shall include— sure that Federal funds made available under ‘‘(a) TYPES OF ACTIVITIES AUTHORIZED.— ‘‘(1) a 5-year plan for improving the assist- this title for any fiscal year will be used to sup- Grants awarded under this part shall be used by ance provided by the Hispanic-serving institu- plement and, to the extent practical, increase Hispanic-serving institutions of higher edu- tion to Hispanic and other low-income students; the funds that would otherwise be made avail- cation to assist such institutions to plan, de- and able for the purposes of section 503, and in no velop, undertake, and carry out programs. ‘‘(2) such other information and assurance as case supplant those funds; ‘‘(b) AUTHORIZED ACTIVITIES.—Grants award- the Secretary may require. ‘‘(3) set forth policies and procedures for eval- ed under this section shall be used for one or ‘‘(c) PRIORITY.—The Secretary shall give pri- uating the effectiveness in accomplishing the more of the following activities: ority to applications that contain satisfactory purpose of the activities for which a grant is ‘‘(1) purchase, rental, or lease of scientific or evidence that such institution has entered into sought under this title; laboratory equipment for educational purposes, or will enter into a collaborative arrangement ‘‘(4) provide for such fiscal control and fund including instructional and research purposes; with at least one local educational agency or accounting procedures as may be necessary to ‘‘(2) construction, maintenance, renovation, community-based organization having dem- ensure proper disbursement of and accounting and improvement in classrooms, libraries, lab- onstrated effectiveness to provide such agency for funds made available to the applicant under oratories, and other instructional facilities; with assistance (from funds other than funds this title; ‘‘(3) support of faculty exchanges, faculty de- provided under this part) in reducing Hispanic ‘‘(5) provide (A) for making such reports, in velopment, curriculum development, academic dropout rates, improving Hispanic rates of aca- such form and containing such information, as instruction, and faculty fellowships to assist in demic achievement, and increasing the rates at the Secretary may require to carry out the func- attaining advanced degrees in their field of in- which Hispanic high school graduates enroll in tions under this title and the Government Per- struction; higher education. formance and Results Act, including not less ‘‘(4) purchase of library books, periodicals, ‘‘(d) SPECIAL RULE.—For the purposes of this than one report annually setting forth the insti- and other educational materials, including tele- part, no Hispanic-serving college or university tution’s progress toward achieving the objectives communications program material; which is eligible for and receives funds under for which the funds were awarded, and (B) for ‘‘(5) tutoring, counseling, and student service this part may concurrently receive other funds keeping such records and affording such access programs designed to improve academic success; under title III. thereto, as the Secretary may find necessary to ‘‘(6) funds management, administrative man- ‘‘SEC. 505. DURATION OF GRANT. assure the correctness and verification of such agement, and acquisition of equipment for use ‘‘(a) AWARD PERIOD.—The Secretary may reports; in strengthening funds management; award a grant to an eligible institution under ‘‘(6) provide that the institution will comply ‘‘(7) joint use of facilities, such as laboratories this part for 5 years, except that no institution with the limitations set forth in section 526; and libraries; shall be eligible to secure a subsequent 5-year ‘‘(7) describe in a comprehensive manner any ‘‘(8) establishing or improving a development grant award under this part until two years proposed project for which funds are sought office to strengthen or improve contributions have elapsed since the expiration of its most re- under the application and include— from alumni and the private sector; cent 5-year grant award. ‘‘(A) a description of the various components ‘‘(9) establishing or improving an endowment ‘‘(b) LIMITATIONS.—In awarding grants under of the proposed project, including the estimated fund; this part the Secretary shall give priority to ap- time required to complete each such component; ‘‘(10) creating or improving facilities for Inter- plicants who are not already receiving a grant ‘‘(B) in the case of any development project net or other distance learning academic instruc- under this part, except that for the purpose of which consists of several components (as de- tion capabilities, including purchase or rental of this subsection a grant under section 524(a)(1) scribed by the applicant pursuant to subpara- telecommunications technology equipment or shall not be considered a grant under this part. graph (A)), a statement identifying those compo- services; ‘‘(c) PLANNING GRANTS.—Notwithstanding nents which, if separately funded, would be ‘‘(11) establishing or enhancing a program of subsection (a), the Secretary may award a grant sound investments of Federal funds and those teacher education designed to qualify students to an eligible institution under this part for a components which would be sound investments to teach in public elementary and secondary period of one year for the purpose of prepara- of Federal funds only if funded under this title schools; tion of plans and applications for a grant under in conjunction with other parts of the develop- ‘‘(12) establishing community outreach pro- this part. ment project (as specified by the applicant); grams which will encourage elementary and sec- ‘‘(C) an evaluation by the applicant of the ondary school students to develop academic ‘‘PART B—GENERAL PROVISIONS priority given any proposed project for which skills and the interest to pursue postsecondary ‘‘SEC. 521. APPLICATIONS FOR ASSISTANCE. funds are sought in relation to any other education; ‘‘(a) APPLICATIONS.— projects for which funds are sought by the ap- ‘‘(13) improving and expanding graduate and ‘‘(1) APPLICATIONS REQUIRED.—Any institu- plicant under this title, and a similar evaluation professional opportunities for Hispanic stu- tion which is eligible for assistance under this regarding priorities among the components of dents; and title shall submit to the Secretary an application any single proposed project (as described by the ‘‘(14) other activities proposed in the applica- for assistance at such time, in such form, and applicant pursuant to subparagraph (A)); tion submitted pursuant to section 504 that— containing such information, as may be nec- ‘‘(D) a detailed budget showing the manner in ‘‘(A) contribute to carrying out the purposes essary to enable the Secretary to evaluate its which funds for any proposed project would be of this section; and need for assistance. Subject to the availability of spent by the applicant; and ‘‘(B) are approved by the Secretary as part of appropriations to carry out this title, the Sec- ‘‘(E) a detailed description of any activity the review and acceptance of such application. retary may approve an application for a grant which involves the expenditure of more than ‘‘(c) ENDOWMENT FUND LIMITATIONS.— under this title only if the Secretary determines $25,000, as identified in the budget referred to in ‘‘(1) PORTION OF GRANT.—An institution may that— subparagraph (D); and not use more than 20 percent of its grant under ‘‘(A) the application meets the requirements of ‘‘(8) include such other information as the this part for any fiscal year for establishing or subsection (b); Secretary may prescribe. improving an endowment fund. ‘‘(B) the applicant is eligible for assistance in ‘‘(c) PRIORITY CRITERIA PUBLICATION RE- ‘‘(2) MATCHING REQUIRED.—An institution accordance with the part of this title under QUIRED.—The Secretary shall publish in the that uses any portion of its grant under this which the assistance is sought; and Federal Register, pursuant to chapter 5 of title part for any fiscal year for establishing or im- ‘‘(C) the applicant’s performance goals are 5, United States Code, all policies and proce- proving an endowment fund shall provide an sufficiently rigorous as to meet the purposes of dures required to exercise the authority set forth equal or greater amount for such purposes from this title and the performance objectives and in- in subsection (a). No other criteria, policies, or non-Federal funds. dicators for this title established by the Sec- procedures shall apply. ‘‘(3) REGULATIONS.—The Secretary shall pub- retary pursuant to the Government Performance ‘‘(d) ELIGIBILITY DATA.—The Secretary shall lish rules and regulations specifically governing and Results Act. use the most recent and relevant data concern- the use of funds for establishing or improving ‘‘(2) PRELIMINARY APPLICATIONS.—In carrying ing the number and percentage of students re- an endowment fund. out paragraph (1), the Secretary shall develop a ceiving need-based assistance under title IV of ‘‘SEC. 504. APPLICATION PROCESS. preliminary application for use by eligible insti- this Act in making eligibility determinations and ‘‘(a) INSTITUTIONAL ELIGIBILITY.—Each His- tutions applying under part A prior to the sub- shall advance the base-year forward following panic-serving institution desiring to receive as- mission of the principal application. each annual grant cycle. H2590 CONGRESSIONAL RECORD — HOUSE April 29, 1998 ‘‘SEC. 522. WAIVER AUTHORITY AND REPORTING ‘‘(2) the recommendations of the panel with $80,000,000 for fiscal year 1999, and such sums as REQUIREMENT. respect to such application; and may be necessary for each of the 4 succeeding ‘‘(a) WAIVER REQUIREMENTS; NEED-BASED AS- ‘‘(3) the reasons for the decision of the Sec- fiscal years. SISTANCE STUDENTS.—The Secretary may waive retary in awarding or refusing to award a grant ‘‘(b) USE OF MULTIPLE YEAR AWARDS.—In the the requirements set forth in section under this title, and any modifications, if any, event of a multiple year award to any institu- 502(a)(2)(A)(i) in the case of an institution— in the recommendations of the panel made by tion under this title, the Secretary shall make ‘‘(1) which is extensively subsidized by the the Secretary. funds available for such award from funds ap- State in which it is located and charges low or ‘‘SEC. 524. COOPERATIVE ARRANGEMENTS. propriated for this title for the fiscal year in no tuition; which such funds are to be used by the recipi- ‘‘(2) which serves a substantial number of ‘‘(a) GENERAL AUTHORITY.—The Secretary ent.’’. low-income students as a percentage of its total may make grants to encourage cooperative ar- student population; rangements with funds available to carry out The CHAIRMAN. Are there amend- ‘‘(3) which is contributing substantially to in- part A, between institutions eligible for assist- ments to title V? ance under part A and between such institu- creasing higher education opportunities for edu- AMENDMENT NO. 57 OFFERED BY MR. CLAY cationally disadvantaged, underrepresented, or tions and institutions not receiving assistance under this title for the activities described in Mr. CLAY. Mr. Chairman, I offer an minority students, who are low-income individ- amendment. uals; section 503 so that the resources of the cooperat- ‘‘(4) which is substantially increasing higher ing institutions might be combined and shared The CHAIRMAN. The Clerk will des- educational opportunities for individuals in to achieve the purposes of such part and avoid ignate the amendment. rural or other isolated areas which are unserved costly duplicative efforts and to enhance the de- The text of the amendment is as fol- by postsecondary institutions; or velopment of part A eligible institutions. lows: ‘‘(5) wherever located, if the Secretary deter- ‘‘(b) PRIORITY.—The Secretary shall give pri- Amendment No. 57 offered by Mr. CLAY: mines that the waiver will substantially increase ority to grants for the purposes described under Page 271, strike line 14 and insert the fol- higher education opportunities appropriate to subsection (a) whenever the Secretary deter- lowing: the needs of Hispanic Americans. mines that the cooperative arrangement is geo- ‘‘(A)(i) is an eligible institution; or ‘‘(b) WAIVER DETERMINATIONS; EXPENDI- graphically and economically sound or will ben- ‘‘(ii) is an institution of higher education TURES.—(1) The Secretary may waive the re- efit the applicant institution. (as such term is defined in section 101(a)(2)) quirements set forth in section 502(a)(2)(A)(ii) if ‘‘(c) DURATION.—Grants to institutions having that provides a 4-year baccalaureate pro- the Secretary determines, based on persuasive a cooperative arrangement may be made under gram, is regionally accredited, and serves at evidence submitted by the institution, that the this section for a period as determined under least 1,500 Hispanic students; institution’s failure to meet that criterion is due section 505. Mr. CLAY. Mr. Chairman, this is an to factors which, when used in the determina- ‘‘SEC. 525. ASSISTANCE TO INSTITUTIONS UNDER tion of compliance with such criterion, distort OTHER PROGRAMS. amendment offered by the gentleman such determination, and that the institution’s ‘‘(a) ASSISTANCE ELIGIBILITY.—Each institu- from New York (Mr. SERRANO) which designation as an eligible institution under part tion which the Secretary determines to be an in- would expand the definition of Hispanic A is otherwise consistent with the purposes of stitution eligible under part A may be eligible serving institutions. I understand that such part. for waivers in accordance with subsection (b). the majority is willing to accept the ‘‘(2) The Secretary shall submit to the Con- ‘‘(b) WAIVER APPLICABILITY.—(1) Subject to, amendment, so I will leave it at that. gress every other year a report concerning the and in accordance with, regulations promul- Mr. GOODLING. Mr. Chairman, will institutions which, although not satisfying the gated for the purpose of this section, in the case the gentleman yield to me? criterion contained in section 502(a)(2)(A)(ii), of any application by an institution referred to Mr. CLAY. I yield to the gentleman have been determined to be eligible institutions in subsection (a) for assistance under any pro- under part A institutions which enroll signifi- grams specified in paragraph (2), the Secretary from Pennsylvania. cant numbers of Black American, Hispanic, Na- is authorized, if such application is otherwise Mr. GOODLING. Mr. Chairman, we tive American, Asian American, or Native Ha- approvable, to waive any requirement for a non- accept the amendment. waiian students under part A, as the case may Federal share of the cost of the program or The CHAIRMAN. The question is on be. Such report shall— project, or, to the extent not inconsistent with the amendment offered by the gen- ‘‘(A) identify the factors referred to in para- other law, to give, or require to be given, prior- tleman from Missouri (Mr. CLAY). graph (1) which were considered by the Sec- ity consideration of the application in relation The amendment was agreed to. retary as factors that distorted the determina- to applications from other institutions. The CHAIRMAN. Are there further tion of compliance with section 502(a)(2)(A)(ii); ‘‘(2) The provisions of this section shall apply amendments to title V? and to any program authorized by title IV or VII of ‘‘(B) contain a list of each institution deter- The Clerk will designate title VI. this Act. The text of title VI is as follows: mined to be an eligible institution under part A ‘‘(c) LIMITATION.—The Secretary shall not including a statement of the reasons for each waive, under subsection (b), the non-Federal TITLE VI—INTERNATIONAL AND such determination. share requirement for any program for applica- GRADUATE EDUCATION PROGRAMS ‘‘SEC. 523. APPLICATION REVIEW PROCESS. tions which, if approved, would require the ex- SEC. 601. INTERNATIONAL AND FOREIGN LAN- ‘‘(a) REVIEW PANEL.—All applications submit- penditure of more than 10 percent of the appro- GUAGE STUDIES. ted under this title by institutions of higher edu- priations for the program for any fiscal year. (a) STATUTORY STRUCTURE.—Title VI is cation shall be read by a panel of readers com- ‘‘SEC. 526. LIMITATIONS. amended— posed of individuals selected by the Secretary. The funds appropriated under section 528 may (1) by striking The Secretary shall assure that no individual not be used— ‘‘PART A—INTERNATIONAL AND FOREIGN assigned under this section to review any appli- ‘‘(1) for a school or department of divinity or LANGUAGE STUDIES’’ cation has any conflict of interest with regard any religious worship or sectarian activity; and inserting the following: to the application which might impair the im- ‘‘(2) for an activity that is inconsistent with a ‘‘PART A—INTERNATIONAL EDUCATION partiality with which the individual conducts State plan for desegregation of higher education the review under this section. applicable to such institution; ‘‘Subpart 1—International and Foreign ‘‘(2) All readers selected by the Secretary shall ‘‘(3) for an activity that is inconsistent with a Language Studies’’; receive thorough instruction from the Secretary State plan of higher education applicable to (2) by striking regarding the evaluation process for applica- such institution; or ‘‘PART B—BUSINESS AND INTERNATIONAL tions submitted under this title and consistent ‘‘(4) for purposes other than the purposes set EDUCATION PROGRAMS’’ with the provisions of this title, including— forth in the approved application under which and inserting the following: ‘‘(A) an enumeration of the factors to be used the funds were made available to the institu- ‘‘Subpart 2—Business and International to determine the quality of applications submit- tion. ted under this title; and Education Programs’’; ‘‘SEC. 527. PENALTIES. ‘‘(B) an enumeration of the factors to be used (3) by striking to determine whether a grant should be awarded Whoever, being an officer, director, agent, or employee of, or connected in any capacity with, ‘‘PART C—INSTITUTE FOR for a project under this title, the amount of any INTERNATIONAL PUBLIC POLICY’’ such grant, and the duration of any such grant. any recipient of Federal financial assistance or and inserting the following: ‘‘(b) RECOMMENDATIONS OF PANEL.—In grant pursuant to this title embezzles, willfully awarding grants under this title, the Secretary misapplies, steals, or obtains by fraud any of ‘‘Subpart 3—Institute for International Public shall take into consideration the recommenda- the funds which are the subject of such grant or Policy’’; and tions of the panel made under subsection (a). assistance, shall be fined not more than $10,000 (4) by striking or imprisoned for not more than 2 years, or ‘‘(c) NOTIFICATION.—Not later than June 30 of ‘‘PART D—GENERAL PROVISIONS’’ each year, the Secretary shall notify each insti- both. and inserting the following: tution of higher education making an applica- ‘‘SEC. 528. AUTHORIZATIONS OF APPROPRIA- tion under this title of— TIONS. ‘‘Subpart 4—General Provisions’’. ‘‘(1) the scores given the applicant by the ‘‘(a) AUTHORIZATIONS.—There are authorized (b) FINDINGS AND PURPOSES.—Section 601 (20 panel pursuant to this section; to be appropriated to carry out part A, U.S.C. 1121) is amended to read as follows: April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2591

‘‘SEC. 601. FINDINGS AND PURPOSES. (D) by striking paragraph (2) and inserting ‘‘(2) GRADUATE DEPENDENT AND TRAVEL EX- ‘‘(a) FINDINGS.—The Congress finds as fol- the following: PENSES.—Fellowships awarded to graduate level lows: ‘‘(2) AUTHORIZED ACTIVITIES.— recipients may include allowances for depend- ‘‘(1) The security, stability, and economic vi- ‘‘(A) IN GENERAL.—Any grant made under ents and for travel for research and study in the tality of the United States in a complex global paragraph (1) may be used to pay all or part of United States and abroad.’’. era depend upon American experts in and citi- the cost of establishing or operating a center or (d) LANGUAGE RESOURCE CENTERS.—Section zens knowledgeable about world regions, foreign program, in accordance with this subsection. 603(a) (20 U.S.C. 1123(a)) is amended— languages and international affairs, as well as ‘‘(B) MANDATORY ACTIVITIES.—Activities to be (1) by striking paragraph (5) and inserting the on a strong research base in these areas. conducted by centers assisted under this sub- following: ‘‘(2) Advances in communications technology section shall include— ‘‘(5) a significant focus on the teaching and and the growth of regional and global problems ‘‘(i) support for the instruction of foreign lan- learning needs of the less commonly taught lan- make knowledge of other countries and the abil- guages and the offering of courses in a variety guages, including an assessment of the strategic ity to communicate in other languages more es- of nonlanguage disciplines that cover the cen- needs, the determination of ways to meet those sential to the promotion of mutual understand- ter’s subject area or topic, and the incorporation needs nationally, and the publication and dis- ing and cooperation among nations and their of such instruction in baccalaureate and grad- semination of instructional materials in the less peoples. uate programs of study in a variety of discipli- commonly taught languages;’’; ‘‘(3) Dramatic post-Cold War changes in the nary, interdisciplinary, or professional fields; (2) by striking the period at the end of para- world’s geopolitical and economic landscapes ‘‘(ii) support for teaching and research mate- graph (6) and inserting ‘‘; and’’; and are creating needs for American expertise and rials, including library acquisitions, in the cen- (3) by inserting after paragraph (6) the follow- knowledge about a greater diversity of less com- ter’s subject area or topic; ing new paragraph: monly taught foreign languages and nations of ‘‘(iii) programs of outreach or linkage with ‘‘(7) the operation of intensive summer lan- the world. State and local educational agencies, post- guage institutes to train advanced foreign lan- ‘‘(4) Systematic efforts are necessary to en- secondary education institutions at all levels, guage students, provide professional develop- hance the capacity of institutions of higher edu- professional schools, government, business, ment, and improve language instruction cation in the United States and to encourage a media, or the general public; and through preservice and inservice language broader cross-section of institutions of higher ‘‘(iv) program coordination and development, training for teachers.’’. education to develop and expand programs for curriculum planning and development, and stu- (e) UNDERGRADUATE INTERNATIONAL STUDIES producing graduates with international and for- dent advisement. AND FOREIGN LANGUAGE PROGRAMS.—Section eign language expertise and knowledge, and re- ‘‘(C) PERMISSIBLE ACTIVITIES.—Activities to be 604 (20 U.S.C. 1124) is amended— search on such areas, in a variety of disciplines conducted by centers assisted under this sub- (1) in the heading of subsection (a), by strik- and at all levels of graduate and undergraduate section may include— ing ‘‘INCENTIVES’’ and all that follows through education. ‘‘(i) support for the creation of faculty posi- ‘‘PROGRAMS’’ and inserting ‘‘PROGRAM INCEN- ‘‘(5) Cooperative efforts among the Federal tions in disciplines that are underrepresented in TIVES’’; Government, institutions of higher education, the center’s instructional program; (2) in subsection (a)(1)— and the private sector are necessary to promote ‘‘(ii) establishment and maintenance of link- (A) by striking ‘‘or combinations of such insti- the generation and dissemination of information ages with overseas institutions of higher edu- tutions’’ in the first sentence and inserting ‘‘, about world regions, foreign languages, and cation for the purpose of contributing to the combinations of such institutions, or partner- international affairs throughout education, gov- teaching and research of the center; ships between nonprofit educational organiza- ernment, business, civic, and nonprofit sectors ‘‘(iii) support for bringing visiting scholars tions and such institutions,’’; in the United States. and faculty to the center to teach or conduct re- (B) by striking ‘‘a program’’ and inserting ‘‘(b) PURPOSES.—The purposes of this part search; ‘‘programs’’; and are— ‘‘(iv) professional development of the center’s (C) by striking the second sentence and insert- ‘‘(1)(A) to support centers, programs and fel- faculty and staff; ing the following: ‘‘Such grants shall be award- lowships in institutions of higher education in ‘‘(v) projects conducted in cooperation with ed for the purpose of seeking to create new pro- the United States for producing increased num- other National Resource Centers addressing grams or to strengthen existing programs in un- bers of trained personnel and research in for- themes of world regional, cross-regional, inter- dergraduate area studies, foreign languages, eign languages, area and other international national, or global importance; and other international fields.’’; studies; ‘‘(vi) summer institutes in the United States or (3) by striking paragraphs (2) and (3) and in- ‘‘(B) to develop a pool of international experts abroad designed to provide language and area serting the following: to meet national needs; training in the center’s field or topic; and ‘‘(2) USE OF FUNDS.—Grants made under this ‘‘(C) to develop and validate specialized mate- ‘‘(vii) support for faculty, staff, and student section may be used for Federal share of the cost rials and techniques for foreign language acqui- travel in foreign areas, regions, or countries, of projects and activities which are an integral sition and fluency, emphasizing (but not limited and for the development and support of edu- part of such a program, such as— to) the less commonly taught languages; cational programs abroad for students.’’. ‘‘(A) planning for the development and expan- ‘‘(D) to promote access to research and train- (2) GRADUATE FELLOWSHIPS; EXPENSE LIMITA- sion of programs in undergraduate international ing overseas; and TIONS.—Section 602 is further amended by strik- studies, and foreign languages and the inter- ‘‘(E) to advance the internationalization of a ing subsections (b) and (c) and inserting the fol- nationalization of undergraduate education; variety of disciplines throughout undergraduate lowing: ‘‘(B) teaching, research, curriculum develop- and graduate education; ‘‘(b) GRADUATE FELLOWSHIPS FOR FOREIGN ment, and other related activities; ‘‘(2) to support cooperative efforts promoting LANGUAGE AND AREA OR INTERNATIONAL STUD- ‘‘(C) training of faculty members in foreign access to and the dissemination of international IES.— countries; and foreign language knowledge, teaching ma- ‘‘(1) AUTHORITY.—The Secretary is authorized ‘‘(D) expansion of existing and development of terials and research throughout education, gov- to make grants to institutions of higher edu- new opportunities for learning foreign lan- ernment, business, civic and nonprofit sectors in cation or combinations of such institutions for guages, including the less commonly taught lan- the United States through the use of advanced the purpose of paying fellowships to individuals guages; technologies; and undergoing advanced training in any center or ‘‘(E) programs under which foreign teachers ‘‘(3) to coordinate the programs of the Federal program approved by the Secretary under this and scholars may visit institutions as visiting Government in the areas of foreign language, part. faculty; area and other international studies, including ‘‘(2) ELIGIBLE STUDENTS.—Students receiving ‘‘(F) international education programs de- professional international affairs education and fellowships described in paragraph (1) shall be signed to develop or enhance linkages between research.’’. individuals who are engaged in an instructional two- and four-year institutions of higher edu- (c) GRADUATE AND UNDERGRADUATE NATIONAL program with stated performance goals for func- cation, or baccalaureate and postbaccalaureate RESOURCE CENTERS.— tional foreign language use or in a program de- programs or institutions; (1) NATIONAL RESOURCE CENTERS.—Section veloping such performance goals, in combina- ‘‘(G) the development of an international di- 602(a) (20 U.S.C. 1122(a)) is amended— tion with area studies, international studies, or mension in preservice and inservice teacher (A) in the heading, by striking ‘‘NATIONAL the international aspects of a professional stud- training; LANGUAGE AND AREA CENTERS AUTHORIZED’’ ies program, including predissertation level ‘‘(H) the development of undergraduate edu- and inserting ‘‘NATIONAL RESOURCE CENTERS studies, preparation for dissertation research, cational programs in locations abroad where FOR FOREIGN LANGUAGE AND AREA OR INTER- dissertation research abroad, and dissertation such opportunities are not otherwise available NATIONAL STUDIES AUTHORIZED’’; writing. or which serve students for whom such opportu- (B) in paragraph (1)(A), by striking ‘‘com- ‘‘(c) RULES WITH RESPECT TO EXPENSES.— nities are not otherwise available and which prehensive language and area centers’’ and in- ‘‘(1) UNDERGRADUATE TRAVEL.—No funds may provide courses that are closely related to on- serting ‘‘comprehensive foreign language and be expended under this part for undergraduate campus foreign language and international cur- area or international studies centers’’; travel except in accordance with rules pre- ricula; (C) in paragraph (1)(B), by striking ‘‘lan- scribed by the Secretary setting forth policies ‘‘(I) the integration of new and continuing guage and area centers’’ and inserting ‘‘foreign and procedures to assure that Federal funds education abroad opportunities for undergradu- language and area or international studies cen- made available for such travel are expended as ate students into curricula of specific degree ters’’; and part of a formal program of supervised study. programs; H2592 CONGRESSIONAL RECORD — HOUSE April 29, 1998 ‘‘(J) the development of model programs to en- cation, public or nonprofit private library insti- U.S.C. 1131(e)) is amended by striking ‘‘one- rich or enhance the effectiveness of educational tutions, or consortia of such institutions, to de- fourth’’ and inserting ‘‘one-half’’. programs abroad, including predeparture and velop innovative techniques or programs using (b) JUNIOR YEAR AND SUMMER ABROAD PRO- postreturn programs, and the integration of new electronic technologies to collect, organize, GRAM.—Section 622 (20 U.S.C. 1131a) is amend- educational programs abroad into the curricu- preserve and widely disseminate information on ed— lum of the home institution; world regions and countries other than the (1) in the heading of such section, by inserting ‘‘(K) the expansion of library and teaching re- United States that address the nation’s teaching ‘‘AND SUMMER’’ after ‘‘YEAR’’; sources; and research needs in international education (2) in subsection (a)— ‘‘(L) the development of programs designed to and foreign languages. (A) by striking ‘‘shall conduct’’ and inserting integrate professional and technical education ‘‘(b) AUTHORIZED ACTIVITIES.—Grants under ‘‘is authorized to conduct’’; with area studies, foreign languages, and other this section may be used— (B) by inserting ‘‘and summer’’ after ‘‘junior international fields; ‘‘(1) to facilitate access to or preserve foreign year’’ each place it appears in the first and sec- ‘‘(M) the establishment of linkages overseas information resources in print or electronic ond sentences; with institutions of higher education and orga- forms; (C) by inserting ‘‘in a junior year abroad pro- nizations that contribute to the educational ob- ‘‘(2) to develop new means of immediate, full- gram’’ after ‘‘Each student’’ in the last sen- jectives of this subsection; text document delivery for information and tence; ‘‘(N) the conduct of summer institutes in for- scholarship from abroad; (3) in subsection (b)(2), by inserting ‘‘or sum- eign area and other international fields to pro- ‘‘(3) to develop new means of shared electronic mer’’ after ‘‘junior year’’; and vide faculty and curriculum development, in- access to international data; (4) in subsection (c)— cluding the integration of professional and tech- ‘‘(4) to support collaborative projects of index- (A) by inserting ‘‘or summer abroad program’’ nical education with foreign area and other ing, cataloging, and other means of biblio- after ‘‘junior year abroad program’’ each place international studies, and to provide foreign graphic access for scholars to important re- it appears; and area and other international knowledge or skills search materials published or distributed outside (B) by striking ‘‘abroad or internship’’ and in- to government personnel or private sector pro- the United States; serting ‘‘abroad, summer abroad, or internship’’. fessionals in international activities; ‘‘(5) to develop methods for the wide dissemi- (c) INTERNSHIPS.—Section 624 (20 U.S.C. 1132c) ‘‘(O) the development of partnerships between nation of resources written in non-Roman lan- is amended— institutions of higher education and the private guage alphabets; (1) by striking ‘‘The Institute’’ and inserting sector, government, and elementary and second- ‘‘(6) to assist teachers of less commonly taught ‘‘(a) IN GENERAL.—The Institute’’; and ary education institutions to enhance inter- languages in acquiring, via electronic and other (2) by adding at the end the following new national knowledge and skills; and means, materials suitable for classroom use; and subsection: ‘‘(P) the use of innovative technology to in- ‘‘(7) to promote collaborative technology based ‘‘(b) POSTBACCALAUREATE INTERNSHIPS.—The crease access to international education pro- projects in foreign languages, area and inter- Institute shall enter into agreements with insti- grams. national studies among grant recipients under tutions of higher education described in the first ‘‘(3) NON-FEDERAL SHARE.—The non-Federal this title. sentence of subsection (a) to conduct internships share of the cost of the programs assisted under ‘‘(c) APPLICATION.—Each institution or con- in Washington, DC, for students who have com- this subsection may be provided in cash from the sortium desiring a grant under this section shall pleted study for the baccalaureate degree. The private sector corporations or foundations in an submit an application to the Secretary at such Internship program authorized by this sub- amount equal to one-third of the total requested time, in such manner, and accompanied by such section shall— grant amount, or may be provided as in-cash or information and assurances as the Secretary ‘‘(1) be designated to assist the students to in-kind contribution from institutional and non- may reasonably require. prepare for a master’s degree program; institutional funds, including State and private ‘‘(d) MATCH REQUIRED.—The Federal share of ‘‘(2) be carried out with the assistance of the sector corporation or foundation contributions, the total cost of carrying out a program sup- Woodrow Wilson Fellowship program; equal to one-half of the total requested grant ported by a grant under this section shall not be ‘‘(3) contain work experience for the students amount.’’; more than 662⁄3 percent. The non-Federal share designated to contribute to the objectives set (4) by adding at the end of subsection (a) the of such cost may be provided either in-kind or in forth in paragraph (1); and following new paragraphs: cash, and may include contributions from pri- ‘‘(4) contain such other elements as the Insti- ‘‘(5) SPECIAL RULE.—The Secretary may waive vate sector corporations or foundations.’’. tute determines will carry out the objectives of or reduce the required non-Federal share for (i) DEVELOPMENT GRANTS.—Section 610 (20 this subsection.’’. title III-eligible institutions which have submit- U.S.C. 1127) is amended by adding at the end (d) NEW PROGRAMS.—Title VI is further ted a grant application under this section. the following new subsection: amended— ‘‘(6) EVALUATION CRITERIA AND REPORT.—As a ‘‘(d) DEVELOPMENT GRANTS AUTHORIZED.— (1) by redesignating sections 625 through 627 condition for the award of any grant under this The Secretary is encouraged to consider the es- (20 U.S.C. 1131d–1131f) as sections 627 through subsection, the Secretary may establish criteria tablishment of new centers, and may use at least 629; and for evaluating programs and require an annual 10 percent of the funds available for this section (2) by inserting after section 624 the following report which evaluates the progress and per- to make grants for the establishment of such new sections: formance of students in such programs.’’. new centers.’’. ‘‘SEC. 625. INSTITUTIONAL DEVELOPMENT. (5) by striking subsection (b); (j) AUTHORIZATION OF APPROPRIATIONS.—Sec- ‘‘(a) IN GENERAL.—The Institute shall make (6) by redesignating subsection (c) as sub- tion 610A (20 U.S.C. 1128) is amended by striking grants, from amounts available to it in each fis- section (b); and ‘‘1993’’ and inserting ‘‘1999’’. cal year, to Historically Black Colleges and Uni- (7) by adding at the end the following new (k) CONFORMING AMENDMENT.—Title VI is fur- versities, Hispanic-serving Institutions, Tribally subsection: ther amended by redesignating sections 606, 607, Controlled Indian Community Colleges, and mi- ‘‘(c) FUNDING SUPPORT.—The Secretary may 608, 609, 610, and 610A as sections 605 through nority institutions, to enable such colleges, uni- use no more than 10 percent of the total amount 610, respectively. versities, and institutions to strengthen inter- appropriated for this title, other than amounts national affairs programs. appropriated for part D, for carrying out the SEC. 602. BUSINESS AND INTERNATIONAL EDU- CATION PROGRAMS. ‘‘(b) APPLICATION.—No grant may be made by purposes of this section.’’. (a) CENTERS FOR INTERNATIONAL BUSINESS the Institute under this section unless an appli- (f) INTENSIVE SUMMER LANGUAGE INSTI- EDUCATION.—Section 612 (20 U.S.C. 1130–1) is cation is made by the college, university, or in- TUTES.—Section 605 (20 U.S.C. 1124a) is re- amended— stitution at such time, in such manner, and ac- pealed. (1) in subsection (c)(1)(B), by striking ‘‘ad- (g) RESEARCH; STUDIES; ANNUAL REPORT.— companied by such information as the Institute Section 606(a) (20 U.S.C. 1125(a)) is amended— vanced’’; may require. (1) in paragraph (4), by inserting before the (2) in subsection (c)(1)(C), by striking ‘‘(c) DEFINITIONS.—As used in this section— semicolon at the end the following: ‘‘, area stud- ‘‘evening or summer programs,’’ and inserting ‘‘(1) the term ‘Historically Black College and ies, or other international fields’’; ‘‘programs’’; and University’ has the same meaning given the term (2) by striking ‘‘and’’ at the end of paragraph (3) in subsection (d)(2)(G), by inserting before by section 322(2) of this Act; (5); the period at the end the following: ‘‘, such as ‘‘(2) the term ‘Hispanic-serving Institution’ (3) by striking the period at the end of para- a representative of a community college in the has the same meaning given the term by section graph (6) and inserting ‘‘; and’’; and region served by the center’’. 316(b)(1) of this Act; (4) by inserting after paragraph (6) the follow- (b) AUTHORIZATION OF APPROPRIATIONS.—Sec- ‘‘(3) the term ‘Tribally controlled Indian com- ing new paragraph: tion 614 (20 U.S.C. 1130b) is amended by striking munity college’ has the same meaning given that ‘‘(7) studies and surveys of the uses of tech- ‘‘1993’’ each place it appears and inserting term by the Tribally Controlled Community Col- nology in foreign language, area and inter- ‘‘1999’’. lege Assistance Act of 1978; and national studies programs.’’. (c) TECHNICAL AMENDMENT.—The heading of ‘‘(4) the term ‘minority institution’ has the (h) PERIODICALS.—Section 607 (20 U.S.C. section 611 (20 U.S.C. 1130) is amended to read same meaning given that term in section 347 of 1125a) is amended to read as follows: as follows: this Act. ‘‘SEC. 607. TECHNOLOGICAL INNOVATION AND ‘‘SEC. 611. FINDINGS AND PURPOSES.’’. ‘‘SEC. 626. INTERAGENCY COMMITTEE ON MINOR- COOPERATION FOR FOREIGN INFOR- SEC. 603. INSTITUTE FOR INTERNATIONAL PUB- ITY CAREERS IN INTERNATIONAL AF- MATION ACCESS. LIC POLICY. FAIRS. ‘‘(a) AUTHORITY.—The Secretary is authorized (a) MINORITY FOREIGN SERVICE PROFESSIONAL ‘‘(a) ESTABLISHMENT.—There is established in to make grants to institutions of higher edu- DEVELOPMENT PROGRAM.—Section 621(e) (20 the executive branch of the Federal Government April 29, 1998 CONGRESSIONAL RECORD — HOUSE H2593 an Interagency Committee on Minority Careers retary shall coordinate the administration and in accordance with subsection (b). Applications in International Affairs composed of 7 members. regulation of programs under this part with shall be ranked on program quality by review The members of the Committee shall be— other Federal programs providing graduate as- panels of nationally recognized scholars and ‘‘(1) the Undersecretary for International Af- sistance to minimize duplication and improve ef- evaluated on the quality and effectiveness of the fairs and Commodity Programs of the Depart- ficiency. academic program and the achievement and ment of Agriculture, appointed by the Secretary ‘‘(2) ADDITIONAL GRANTS.—The Secretary may promise of the students to be served. To the ex- of Agriculture; also make grants to such departments and pro- tent possible (consistent with other provisions of ‘‘(2) the Assistant Secretary and Director Gen- grams and to other units of institutions of high- this section), the Secretary shall make awards eral, the Commercial Service of the Department er education granting graduate degrees which that are consistent with recommendations of the of Commerce, appointed by the Secretary of submit joint proposals involving nondegree review panels. Commerce; granting institutions which have formal ar- ‘‘(b) CONTENTS OF APPLICATIONS.—An aca- ‘‘(3) the Undersecretary of Defense for Person- rangements for the support of doctoral disserta- demic department or program of an institution nel and Readiness of the Department of De- tion research with degree-granting institutions. of higher education, in its application for a fense, appointed by the Secretary of Defense; Nondegree granting institutions eligible for grant, shall— ‘‘(4) the Assistant Secretary for Postsecondary awards as part of such joint proposals include ‘‘(1) describe the current academic program of Education in the Department of Education, ap- any organization which— the applicant for which the grant is sought; pointed by the Secretary of Education; ‘‘(A) is described in section 501(c)(3) of the In- ‘‘(2) provide assurances that the applicant ‘‘(5) the Director General of the Foreign Serv- ternal Revenue Code of 1986, and is exempt from will provide, from other non-Federal funds, for ice of the Department of State, appointed by the tax under section 501(a) of such Code; the purposes of the fellowship program under Secretary of State; ‘‘(B) is organized and operated substantially this part an amount equal to at least 25 percent ‘‘(6) the General Counsel of the Agency for to conduct scientific and cultural research and of the amount of the grant received under this International Development, appointed by the graduate training programs; part, which contribution may be in cash or in Administrator; and ‘‘(C) is not a private foundation; kind fairly valued; ‘‘(7) the Associate Director for Educational ‘‘(D) has academic personnel for instruction ‘‘(3) describe the number, types, and amounts and Cultural Affairs of the United States Infor- and counseling who meet the standards of the of the fellowships that the applicant intends to mation Agency, appointed by the Director. institution of higher education in which the stu- offer under the grant; ‘‘(b) FUNCTIONS.—The Interagency Committee dents are enrolled; and ‘‘(4) set forth policies and procedures to assure established by this section shall— ‘‘(E) has necessary research resources not oth- that, in making fellowship awards under this ‘‘(1) advise the Secretary and the Institute erwise readily available in such institutions to part, the institution will make awards to indi- with respect to programs authorized by this such students. viduals who— part; and ‘‘(b) AWARD AND DURATION OF GRANTS.— ‘‘(A) have financial need, as determined under ‘‘(2) promote policies in each department and ‘‘(1) AWARDS.—The principal criterion for the part F of title IV; agency participating on the Committee that are allocation of awards shall be the relative quality ‘‘(B) have excellent academic records in their designed to carry out the objectives of this of the graduate programs presented in compet- previous programs of study; and part.’’. ing applications. Consistent with an allocation ‘‘(C) plan to pursue the highest possible de- (e) AUTHORIZATION.—Section 629 (20 U.S.C. of awards based on quality of competing appli- gree available in their course of study; 1131f) (as redesignated by subsection (d)) is cations, the Secretary shall, in making such ‘‘(5) set forth policies and procedures to en- amended by striking ‘‘1993’’ and inserting grants, promote an equitable geographic dis- sure that Federal funds made available under ‘‘1999’’. tribution among eligible public and private insti- this part for any fiscal year will be used to sup- SEC. 604. GENERAL PROVISIONS. tutions of higher education. plement and, to the extent practical, increase (a) DEFINITIONS.—Section 631(a) (20 U.S.C. ‘‘(2) DURATION.—The Secretary shall approve the funds that would otherwise be made avail- 1132(a)) is amended— a grant recipient under this part for a 3-year pe- able for the purpose of this part and in no case (1) by striking ‘‘and’’ at the end of paragraph riod. From the sums appropriated under this to supplant those funds; (7); part for any fiscal year, the Secretary shall not ‘‘(6) provide assurances that, in the event that (2) by striking the period at the end of para- make a grant to any academic department or funds made available to the academic depart- graph (8) and inserting ‘‘; and’’; and program of an institution of higher education of ment or program under this part are insufficient (3) by inserting after paragraph (8) the follow- less than $125,000 or greater than $750,000 per to provide the assistance due a student under ing new paragraphs: fiscal year. the commitment entered into between the aca- ‘‘(9) the term ‘internationalization of under- ‘‘(3) REALLOTMENT.—Whenever the Secretary demic department or program and the student, graduate education’ means the incorporation of determines that an academic department or pro- the academic department or program will, from foreign languages and area and international gram of an institution of higher education is any funds available to it, fulfill the commitment studies perspectives in any undergraduate unable to use all of the amounts available to it to the student; course or curriculum in order to provide inter- under this part, the Secretary shall, on such ‘‘(7) provide that the applicant will comply national content for that course of study; and dates during each fiscal year as the Secretary with the limitations set forth in section 655; ‘‘(10) the term ‘educational programs abroad’ may fix, reallot the amounts not needed to aca- ‘‘(8) provide assurances that the academic de- means programs of study, internships, or service demic departments and programs of institutions partment will provide at least 1 year of super- learning outside the United States which are which can use the grants authorized by this vised training in instruction for students; and part of a foreign language or other inter- part. ‘‘(9) include such other information as the national curriculum at the undergraduate or ‘‘SEC. 653. INSTITUTIONAL ELIGIBILITY. Secretary may prescribe. graduate education levels.’’. ‘‘(a) ELIGIBILITY CRITERIA.—Any academic ‘‘SEC. 655. AWARDS TO GRADUATE STUDENTS. (b) REPEAL.—Section 632 (20 U.S.C. 1132–1) is department or program of an institution of high- ‘‘(a) COMMITMENTS TO GRADUATE STUDENTS.— repealed. er education that offers a program of ‘‘(1) IN GENERAL.—An academic department or SEC. 605. TRANSFER AND REAUTHORIZATION OF postbaccalaureate study leading to a graduate program of an institution of higher education GRADUATE ASSISTANCE IN AREAS degree in an area of national need (as des- OF NATIONAL NEED PROGRAM. shall make commitments to eligible graduate stu- ignated under subsection (b)) may apply for a dents as defined in section 484 (including stu- (a) AMENDMENT.—Title VI is amended by add- grant under this part. No department or pro- ing at the end the following new part: dents pursuing a doctoral degree after having gram shall be eligible for a grant unless the pro- completed a master’s degree program at an insti- ‘‘PART B—GRADUATE ASSISTANCE IN gram of postbaccalaureate study has been in ex- tution of higher education) at any point in their AREAS OF NATIONAL NEED istence for at least 4 years at the time of appli- graduate study to provide stipends for the ‘‘SEC. 651. PURPOSE. cation for assistance under this part. length of time necessary for a student to com- ‘‘In order to sustain and enhance the capacity ‘‘(b) DESIGNATION OF AREAS OF NATIONAL plete the course of graduate study, but in no for graduate education in areas of national NEED.—After consultation with appropriate case longer than 3 years. need, it is the purpose of this part to provide, Federal and nonprofit agencies and organiza- ‘‘(2) SPECIAL RULE.—No such commitments through academic departments and programs of tions, the Secretary shall designate areas of na- shall be made to students under this part unless institutions of higher education, a fellowship tional need. In making such designations, the the academic department or program has deter- program to assist graduate students of superior Secretary shall take into account the extent to mined adequate funds are available to fulfill the ability who demonstrate financial need. which the interest is compelling, the extent to commitment either from funds received or antici- ‘‘SEC. 652. GRANTS TO ACADEMIC DEPARTMENTS which other Federal programs support pated under this part, or from institutional AND PROGRAMS OF INSTITUTIONS. postbaccalaureate study in the area concerned, funds. ‘‘(a) GRANT AUTHORITY.— and an assessment of how the program could ‘‘(b) AMOUNT OF STIPENDS.—The Secretary ‘‘(1) IN GENERAL.—The Secretary shall make achieve the most significant impact with avail- shall make payments to institutions of higher grants to academic departments and programs able resources. education for the purpose of paying stipends to and other academic units of institutions of high- ‘‘SEC. 654. CRITERIA FOR APPLICATIONS. individuals who are awarded fellowships under er education that provide courses of study lead- ‘‘(a) SELECTION OF APPLICATIONS.—The Sec- this part. The stipends the Secretary establishes ing to a graduate degree in order to enable such retary shall make grants to academic depart- shall reflect the purpose of this program to en- institutions to provide assistance to graduate ments and programs of institutions of higher courage highly talented students to undertake students in accordance with this part. The Sec- education on the basis of applications submitted graduate study as described in this part. In the H2594 CONGRESSIONAL RECORD — HOUSE April 29, 1998 case of an individual who receives such individ- The text of the amendment is as fol- UNFAIRNESS IN TAX CODE: ual’s first stipend under this part in academic lows: MARRIAGE TAX PENALTY year 1999–2000 or any succeeding academic year, Amendment No. 21 offered by Mr. KILDEE: (Mr. WELLER asked and was given such stipend shall be set at a level of support Page 310, strike line 3 and insert the fol- equal to that provided by the National Science permission to address the House for 1 lowing (and redesignate the succeeding para- minute and to revise and extend his re- Foundation graduate fellowships, except such graph accordingly): amount shall be adjusted as necessary so as not (3) in subsection (c)(2)— marks and include extraneous mate- to exceed the fellow’s demonstrated level of need (A) by striking ‘‘and’’ at the end of sub- rial.) as determined under part F of title IV. paragraph (E); Mr. WELLER. Mr. Speaker, some ask ‘‘(c) TREATMENT OF INSTITUTIONAL PAY- (B) by redesignating subparagraph (F) as why is it so important we pass the MENTS.—An institution of higher education that subparagraph (G); and makes institutional payments for tuition and Marriage Tax Elimination Act. Clearly (C) by inserting after subparagraph (E) the I think three questions best answer fees on behalf of individuals supported by fel- following new subparagraph; lowships under this part in amounts that exceed ‘‘(F) professional graduate degrees in that big question. the institutional payments made by the Sec- translation and interpretation; and’’; and Do Americans feel that it is fair that retary pursuant to section 656(a) may count the a working married couple pays higher Mr. KILDEE. Mr. Chairman, I will be excess of such payments toward the amounts the taxes just because they are married? very brief. This provides funds under institution is required to provide pursuant to Do Americans feel that it is fair that section F for professional graduate de- section 654(b)(2). 21 million married working couples pay grees in translation and interpretation. ‘‘(d) ACADEMIC PROGRESS REQUIRED.—Not- on average $1,400 more in taxes than an withstanding the provisions of subsection (a), It adds those being eligible for funds. identical couple living together outside no student shall receive an award— Mr. GOODLING. Mr. Chairman, will of marriage? ‘‘(1) except during periods in which such stu- the gentleman yield to me? Do Americans feel that it is right dent is maintaining satisfactory progress in, and Mr. KILDEE. I yield to the gen- that our Tax Code actually provides an devoting essentially full time to, study or re- tleman from Pennsylvania. search in the field in which such fellowship was incentive to get divorced? Mr. GOODLING. Mr. Chairman, we awarded, or Of course not. Americans recognize accept the amendment. ‘‘(2) if the student is engaging in gainful em- that the marriage tax is wrong and it Mr. KILDEE. Mr. Chairman, I thank ployment other than part-time employment in- is time to do something about it. If you volved in teaching, research, or similar activities the gentleman for accepting the think about it, 21 million Americans determined by the institution to be in support of amendment. paying $1,400 more just because they the student’s progress towards a degree. The CHAIRMAN. The question is on are married, that is real money for real ‘‘SEC. 656. ADDITIONAL ASSISTANCE FOR COST the amendment offered by the gen- OF EDUCATION. people. The south side of Chicago, the tleman from Michigan (Mr. KILDEE). ‘‘(a) INSTITUTIONAL PAYMENTS.—(1) The Sec- The amendment was agreed to. south suburbs that I have the privilege retary shall (in addition to stipends paid to in- of representing, $1,400 is one year’s tui- dividuals under this part) pay to the institution The CHAIRMAN. Are there further amendments to title VI? tion at a local community college, of higher education, for each individual award- three months of day care at a local ed a fellowship under this part at such institu- The Clerk will designate title VII. tion, an institutional allowance. Except as pro- The text of title VII is as follows: child care center, several months worth of car payments. vided in paragraph (2), such allowance shall TITLE VII—CONSTRUCTION, RECON- be— STRUCTION, AND RENOVATION OF ACA- The Marriage Tax Elimination Act is ‘‘(A) $10,000 annually with respect to individ- DEMIC FACILITIES gaining momentum. Let us eliminate uals who first received fellowships under this SEC. 701. EXTENSION OF PRIOR RIGHTS AND OB- the marriage tax. Let us eliminate it part prior to academic year 1999–2000; and LIGATIONS. now. ‘‘(B) with respect to individuals who first re- Section 702(a) (20 U.S.C. 1132a–1(a)) is amend- Mr. WELLER. Mr. Speaker, I rise today to ceive fellowships during or after academic year ed by striking ‘‘fiscal year 1993’’ and inserting highlight what is arguably the most unfair pro- 1999–2000— ‘‘fiscal year 1999’’. ‘‘(i) $10,000 for the academic year 1999–2000; vision in the U.S. Tax code: the marriage tax and SEC. 702. REPEAL OF PART A. penalty. I want to thank you for your long term ‘‘(ii) for succeeding academic years, $10,000 (a) REPEAL.—Part A of title VII (20 U.S.C. interest in bringing parity to the tax burden im- adjusted annually thereafter in accordance with 1132b et seq.) is repealed. posed on working married couples compared inflation as determined by the Department of (b) CONFORMING AMENDMENTS.— (1) Section 701(b) (20 U.S.C. 1132a(b)) is to a couple living together outside of marriage. Labor’s Consumer Price Index for the previous amended by striking ‘‘part A or B’’ and insert- In January, President Clinton gave his State calendar year. of the Union Address outlining many of the ‘‘(2) The institutional allowance paid under ing ‘‘part B’’. (2) Part B of title VII is amended by striking things he wants to do with the budget surplus. paragraph (1) shall be reduced by the amount section 726 (20 U.S.C. 1132c–5). the institution charges and collects from a fel- A surplus provided by the bipartisan budget (3) Section 781 (20 U.S.C. 1132i) is amended by lowship recipient for tuition and other expenses agreement which: cut waste, put America's fis- striking ‘‘part A of this title, or’’ each place it as part of the recipient’s instructional program. cal house in order, and held Washington's feet appears. ‘‘(b) USE FOR OVERHEAD PROHIBITED.—Funds to the fire to balance the budget. made available pursuant to this part may not be SEC. 703. EXTENSION OF AUTHORIZATION OF While President Clinton paraded a long list PART B. used for the general operational overhead of the of new spending totaling at least $46±$48 bil- academic department or program. Section 727(c) (20 U.S.C. 1132c–6(c)) is amend- ed by striking ‘‘fiscal year 1993’’ and inserting lion in new programsÐwe believe that a top ‘‘SEC. 657. CONTINUATION AWARDS. ‘‘fiscal year 1999’’. priority should be returning the budget surplus ‘‘Before making new awards under this part to America's families as additional middle- for any fiscal year, the Secretary shall, as ap- SEC. 704. EXTENSION OF AUTHORIZATION OF PART C. class tax relief. propriate, making continuation awards to re- Section 735 (20 U.S.C. 1132d–4) is amended by cipients of awards under parts B, C, and D of This Congress has given more tax relief to striking ‘‘fiscal year 1993’’ and inserting ‘‘fiscal title IX as in effect prior to the enactment of the the middle class and working poor than any year 1999’’. Higher Education Amendments of 1998. Congress of the last half century. ‘‘SEC. 658. AUTHORIZATION OF APPROPRIATIONS. Mr. GOODLING. Mr. Chairman, I I think the issue of the marriage penalty can ‘‘There are authorized to be appropriated move that the Committee do now rise. best be framed by asking these questions: Do $40,000,000 for fiscal year 1999 and such sums as The motion was agreed to. Americans feel its fair that our tax code im- may be necessary for each of the 4 succeeding Accordingly, the Committee rose; poses a higher tax penalty on marriage? Do fiscal years to carry out this part.’’. and the Speaker pro tempore (Mr. Americans feel its fair that the average mar- (b) REPEAL.—Title IX (20 U.S.C. 1134 et seq.) RIGGS) having assumed the chair, Mr. ried working couple pays almost $1,400 more is repealed. GUTKNECHT, Chairman of the Commit- in taxes than a couple with almost identical in- The CHAIRMAN. Are there any tee of the Whole House on the State of come living together outside of marriage? Is it amendments to title VI? the Union, reported that that Commit- right that our tax code provides an incentive to AMENDMENT NO. 21 OFFERED BY MR. KILDEE tee, having had under consideration get divorced? Mr. KILDEE. Mr. Chairman, I offer the bill (H.R. 6) to extend the author- In fact, today the only form one can file to an amendment on behalf of the gen- ization of programs under the Higher avoid the marriage tax penalty is paperwork tleman from California (Mr. FARR). Education Act of 1965, and for other for divorce. And that is just wrong! The CHAIRMAN. The Clerk will des- purposes, had come to no resolution Since 1969, our tax laws have punished ignate the amendment. thereon. married couples when both spouses work. For