January 7, 2003

Mr. MCKEON (for himself, Mr. BOEHNER, Mr. ISAKSON, Mr. PETRI, Mrs. MCCARTHY of New York, Mr. BALLENGER, Mr. SOUDER, Mr. KIND, Mr. TIBERI, Mr. KELLER, Mr. WU, Mr. OSBORNE, Mr. WILSON of South Carolina, and Mr. BOYD) introduced the following bill; which was referred to the Committee on Education and the Workforce

To make changes to the Higher Education Act of 1965 incorporating the results of the FED UP Initiative, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Fed Up Higher Education Technical Amendments Act of 2003'.

(b) TABLE OF CONTENTS-

Sec. 1. Short title; table of contents.

Sec. 2. Reference; effective date; implementation.

TITLE I--TECHNICAL AMENDMENTS

Sec. 101. Technical amendments.

Sec. 102. Clerical amendments.

Sec. 103. Study of teacher preparation.

TITLE II--STUDENT LOAN FORGIVENESS

Sec. 201. Cancellation of student loan indebtedness for spouses, surviving joint debtors, and parents.

TITLE III--OPPORTUNITIES FOR HIGHER EDUCATION VIA TELECOMMUNICATIONS

Sec. 301. Exception to 50 percent correspondence course limitations.

Sec. 302. Evaluation and report.

SEC. 2. REFERENCE; EFFECTIVE DATE; IMPLEMENTATION.

(a) REFERENCE- Except as otherwise expressly provided in this Act, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

(b) EFFECTIVE DATE- Except as otherwise provided in this Act, the amendments made by this Act shall take effect on the date of enactment of this Act.

(c) IMPLEMENTATION- Sections 482(c) and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089(c), 1098a) shall not apply to the regulations implementing the amendments made by this Act.

TITLE I--TECHNICAL AMENDMENTS

SEC. 101. TECHNICAL AMENDMENTS.

(a) AMENDMENTS TO TITLE I-

(1) Section 101(a)(1) (20 U.S.C. 1001(a)(1)) is amended by inserting before the semicolon at the end the following: `, or students who meet the requirements of section 484(d)(3)'.

(2)(A) Section 102(a)(2)(A) (20 U.S.C. 1002(a)(2)(A)) is amended to read as follows:

`(A) IN GENERAL- For the purpose of qualifying as an institution under paragraph (1)(C), the Secretary shall establish criteria by regulation for the approval of institutions outside the United States and for the determination that such institutions are comparable to an institution of higher education as defined in section 101 (except that a graduate medical school, or a veterinary school, located outside the United States shall not be required to meet the requirements of section 101(a)(4)). Such criteria shall include a requirement that a student attending such school outside the United States is ineligible for loans made, insured, or guaranteed under part B of title IV unless--

`(i) in the case of a graduate medical school located outside the United States--

`(I)(aa) at least 60 percent of those enrolled in, and at least 60 percent of the graduates of, the graduate medical school outside the United States were not persons described in section 484(a)(5) in the year preceding the year for which a student is seeking a loan under part B of title IV; and

`(bb) at least 60 percent of the individuals who were students or graduates of the graduate medical school outside the United States or Canada (both nationals of the United States and others) taking the examinations administered by the Educational Commission for Foreign Medical Graduates received a passing score in the year preceding the year for which a student is seeking a loan under part B of title IV; or

`(II) the institution has a clinical training program that was approved by a State as of January 1, 1992; or

`(ii) in the case of a veterinary school located outside the United States that does not meet the requirements of section 101(a)(4), the institution's students complete their clinical training at an approved veterinary school located in the United States.'.

(B) The amendment made by subparagraph (A) shall be effective as if enacted on October 7, 1998.

(3) Section 102(a)(3)(A) (20 U.S.C. 1002(a)(3)(A)) is amended by striking `section 521(4)(C) of the Carl D. Perkins Vocational and Applied Technology Education Act' and inserting `section 3(3)(C) of the Carl D. Perkins Vocational and Technical Education Act of 1998'.

(4) Paragraph (7) of section 103 (20 U.S.C. 1003) is amended to read as follows:

`(7) NEW BORROWER- The term `new borrower' when used with respect to any date for any loan under any provision of--

`(A) part B or part D of title IV means an individual who on that date has no outstanding balance of principal or interest owing on any loan made, insured, or guaranteed under either such part; and

`(B) part E of title IV means an individual who on that date has no outstanding balance of principal or interest owing on any loan made under such part.'.

(5) Section 131 (20 U.S.C. 1015) is amended--

(A) in subsection (a)(3)(A)(iii)--

(i) by striking `an undergraduate' and inserting `a full-time undergraduate'; and

(ii) in subclause (I), by striking `section 428(a)(2)(C)(i)' and inserting `section 428(a)(2)(C)(ii)';

(B) in subsection (b), by striking `the costs for typical' and inserting `the prices for, and financial aid provided to, typical';

(C) in subsection (c)(2)(B), by striking `costs' and inserting `prices'; and

(D) in subsection (d)(1), by striking `3 years' and inserting `4 years'.

(6) Section 141 (20 U.S.C. 1018) is amended--

(A) in subsection (a)(2)(B)--

(i) by inserting `unit' after `to reduce the'; and

(ii) by inserting `and, to the extent practicable, the total costs of administering those programs' after `those programs';

(B) in subsection (c)--

(i) in paragraph (1)(A), by striking `Each year' and inserting `Each fiscal year';

(ii) in paragraph (1)(B), by inserting `secondary markets, guaranty agencies,' after `lenders,'; and

(iii) in paragraph (2)(B), by striking `Chief Financial Officer Act of 1990 and' and inserting `Chief Financial Officers Act of 1990,' and by inserting before the period at the end the following: `, and other relevant statutes';

(C) in subsection (f)(3)(A), by striking `paragraph (1)(A)' and inserting `paragraph (1)'; and

(D) in subsection (g)(3), by adding at the end the following new sentence: `The names and compensation for those individuals shall be included in the annual report under subsection (c)(2).'.

(b) AMENDMENTS TO TITLE II- Section 207(f)(2) (20 U.S.C. 1027(f)(2)) is amended by inserting `, including by electronic means,' after `sent'.

(c) AMENDMENTS TO TITLE III-

(1) Section 316(b)(3) (20 U.S.C. 1059c(b)(3)) is amended by striking `give' and inserting `given'.

(2) Section 326(e)(1) (20 U.S.C. 1063b(e)(1)) is amended, in the matter preceding subparagraph (A), by inserting a colon after `the following'.

(3) Section 342(5)(C) (20 U.S.C. 1066a(5)(C)) is amended--

(A) by inserting a comma after `equipment' the first place it appears; and

(B) by striking `technology,,' and inserting `technology,'.

(4) Section 343(e) (20 U.S.C. 1066b(e)) is amended by inserting after the subsection designation the following: `SALE OF QUALIFIED BONDS- '.

(5) Section 351(a) (20 U.S.C. 1067a(a)) is amended by striking `of 1979'.

(6) Section 1024 (20 U.S.C. 1135b-3), as transferred by section 301(a)(5) of the Higher Education Amendments of 1998 (Public Law 105-244; 112 Stat. 1636), is repealed.

(d) AMENDMENTS TO PART A OF TITLE IV-

(1) Section 402A (20 U.S.C. 1070a-11) is amended--

(A) in subsection (e)--

(i) in paragraph (1), by striking `(g)(2)' and inserting `(g)(4)'; and

(ii) in paragraph (2), by striking `(g)(2)' and inserting `(g)(4)'; and

(B) in subsection (g)--

(i) by redesignating paragraphs (1) through (4) as paragraphs (3) through (6), respectively; and

(ii) by inserting before paragraph (3), as redesignated, the following:

`(1) DIFFERENT CAMPUS- The term `different campus' means an institutional site that--

`(A) is geographically apart from the main campus of the institution;

`(B) is permanent in nature; and

`(C) offers courses in educational programs leading to a degree, certificate, or other recognized educational credential.

`(2) DIFFERENT POPULATION- The term `different population' means a group of individuals, with respect to whom an entity seeks to serve through an application for funding under this chapter, that is--

`(A) separate and distinct from any other population that the entity seeks to serve through an application for funding under this chapter; or

`(B) while sharing some of the same characteristics as another population that the entity seeks to serve through an application for funding under this chapter, has distinct needs for specialized services.'.

(2)(A) Section 404A(b) (20 U.S.C. 1070a-21(b)) is amended by adding at the end thereof the following new paragraph:

`(3) DURATION- An award made by the Secretary under this chapter to an eligible entity described in paragraph (1) or (2) of subsection (c) shall be for the period of 6 years.'.

(B) The amendment made by subparagraph (A) shall apply to awards made either before or after the date of enactment of this Act.

(3) Section 407E (20 U.S.C. 1070a-35) is redesignated as section 406E.

(4) Section 419C(b)(1) (20 U.S.C. 1070d-33(b)(1)) is amended by inserting `and' after the semicolon at the end thereof.

(5) Section 419D(d) (20 U.S.C. 1070d-34(d)) is amended by striking `Public Law 95-1134' and inserting `Public Law 95-134'.

(e) AMENDMENTS TO PART B OF TITLE IV-

(1) Section 428(a)(2)(A) (20 U.S.C. 1078(a)(2)(A)) is amended--

(A) by striking `and' at the end of subclause (II) of clause (i); and

(B) by moving the margin of clause (iii) two ems to the left.

(2) Section 428(b)(1)(G) (20 U.S.C. 1078(b)(1)(G)) is amended by inserting before the semicolon at the end the following: `and 100 percent of the unpaid principal amount of exempt claims as defined in subsection (c)(1)(G)'.

(3) Section 428(c) (20 U.S.C. 1078(c)) is amended--

(A) in paragraph (1)--

(i) by redesignating subparagraph (G) as subparagraph (H), and moving such subparagraph 2 em spaces to the left; and

(ii) by inserting after subparagraph (F) the following new subparagraph:

`(G)(i) Notwithstanding any other provisions of this section, in the case of exempt claims, the Secretary shall apply the provisions of--

`(I) the fourth sentence of subparagraph (A) by substituting `100 percent' for `95 percent';

`(II) subparagraph (B)(i) by substituting `100 percent' for `85 percent'; and

`(III) subparagraph (B)(ii) by substituting `100 percent' for `75 percent'.

`(ii) For purposes of clause (i) of this subparagraph, the term `exempt claims' means claims with respect to loans for which it is determined that the borrower (or the student on whose behalf a parent has borrowed), without the lender's or the institution's knowledge at the time the loan was made, provided false or erroneous information or took actions that caused the borrower or the student to be ineligible for all or a portion of the loan or for interest benefits thereon.'.

(B) in paragraph (3)(A)(i), by striking `in writing'; and

(C) by adding at the end the following new paragraph:

`(10) DOCUMENTATION OF FORBEARANCE AGREEMENTS- For the purposes of paragraph (3), the terms of forbearance agreed to by the parties shall be documented by confirming the agreement of the borrower by notice to the borrower from the lender, and by recording the terms in the borrower's file.'.

(4) Section 428C(a)(3)(B) (20 U.S.C. 1078-3(a)(3)(B)) is amended by adding at the end the following new clause:

`(ii) Loans made under this section shall, to the extent used to discharge loans made under this title, be counted against the applicable limitations on aggregate indebtedness contained in sections 425(a)(2), 428(b)(1)(B), 428H(d), 455, and 464(a)(2)(B).'.

(5) Section 428H(e) (20 U.S.C. 1078-8(e)) is amended--

(A) by striking paragraph (6); and

(B) by redesignating paragraph (7) as paragraph (6).

(6) Section 428I(g) (20 U.S.C. 1078-9(g)) is amended by striking `Code,' and inserting `Code'.

(7) Section 432(m)(1)(B) (20 U.S.C. 1082(m)(1)(B)) is amended--

(A) in clause (i), by inserting `and' after the semicolon at the end; and

(B) in clause (ii), by striking `; and' and inserting a period.

(8) Section 439(d) (20 U.S.C. 1087-2(d)) is amended--

(A) by striking paragraph (3); and

(B) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.

(f) AMENDMENT TO PART D OF TITLE IV- Section 457(a)(1) (20 U.S.C. 1087g(a)(1)) is amended by striking `431' and inserting `437'.

(g) AMENDMENTS TO PART E OF TITLE IV-

(1) Section 462(g)(1)(E)(i)(I) (20 U.S.C. 1087bb(g)(1)(E)(i)(I)) is amended by inserting `monthly' after `consecutive'.

(2) Section 464(c)(1)(D) (20 U.S.C. 1087dd(c)(1)(D)) is amended by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively.

(3) Section 464(h)(1)(A) is amended--

(A) by inserting `, if practicable (as determined in accordance with regulations of the Secretary),' after `the loan shall'; and

(B) by inserting `, if such loan is considered rehabilitated,' after `the Secretary) shall'.

(4) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is amended--

(A) in subparagraph (A), by striking `section 111(c)' and inserting `section 1113(a)(5)'; and

(B) in subparagraph (C), by striking `With Disabilities' and inserting `with Disabilities'.

(5) Section 467(b) (20 U.S.C. 1087gg(b)) is amended by striking `(5)(A), (5)(B)(i), or (6)' and inserting `(4)(A), (4)(B), or (5)'.

(6) Section 469(c) (20 U.S.C. 1087ii(c)) is amended--

(A) by striking `sections 602(a)(1) and 672(1)' and inserting `sections 602(3) and 632(5)';

(B) by striking `qualified professional provider of early intervention services' and inserting `early intervention services'; and

(C) by striking `section 672(2)' and inserting `section 632(4)'.

(h) AMENDMENTS TO PART F OF TITLE IV-

(1) Section 478(h) (20 U.S.C. 1087rr(h)) is amended--

(A) by striking `476(b)(4)(B),'; and

(B) by striking `meals away from home, apparel and upkeep, transportation, and housekeeping services' and inserting `food away from home, apparel, transportation, and household furnishings and operations'.

(2) Section 479A(a) (20 U.S.C. 1087tt(a)) is amended--

(A) by striking `(a) IN GENERAL- ' and inserting the following:

`(a) AUTHORITY TO MAKE ADJUSTMENTS-

`(1) ADJUSTMENTS FOR SPECIAL CIRCUMSTANCES- ';

(B) by inserting before `Special circumstances may' the following:

`(2) SPECIAL CIRCUMSTANCES DEFINED- ';

(C) by inserting `a student's status as a ward of the court at any time prior to attaining 18 years of age,' after `487,'.

(D) by inserting before `Adequate documentation' the following:

`(3) DOCUMENTATION AND USE OF SUPPLEMENTARY INFORMATION- '; and

(E) by inserting before `No student' the following:

`(4) FEES FOR SUPPLEMENTARY INFORMATION PROHIBITED- '.

(i) AMENDMENTS TO PARTS G AND H OF TITLE IV-

(1) Section 483(d) (20 U.S.C. 1090(d)) is amended by striking `that is authorized under section 685(d)(2)(C)' and inserting `, or another appropriate provider of technical assistance and information on postsecondary educational services, that is supported under section 685'.

(2) Section 484 (20 U.S.C. 1091) is amended--

(A) in subsection (a)(4), by striking `certification,,' and inserting `certification,';

(B) in subsection (b)(2)--

(i) in the matter preceding subparagraph (A), by striking `section 428A' and inserting `section 428H';

(ii) in subparagraph (A), by inserting `and' after the semicolon at the end thereof;

(iii) in subparagraph (B), by striking `; and' and inserting a period; and

(iv) by striking subparagraph (C); and

(C) in subsection (l)(1)(B)(i), by striking `section 521(4)(C) of the Carl D. Perkins Vocational and Applied Technology Education Act' and inserting `section 3(3)(C) of the Carl D. Perkins Vocational and Technical Education Act of 1998'.

(3)(A) Section 484(r)(1) (20 U.S.C. 1091(r)(1)) is amended by striking everything preceding the table and inserting the following:

`(1) IN GENERAL- A student who is convicted of any offense under any Federal or State law involving the possession or sale of a controlled substance for conduct that occurred during a period of enrollment for which the student was receiving any grant, loan, or work assistance under this title shall not be eligible to receive such grant, loan, or work assistance from the date of that conviction for the period of time specified in the following table:'.

(B) The amendment made by subparagraph (A) shall be effective on July 1, 2003.

(4)(A) Section 484B (20 U.S.C. 1091b) is amended--

(i) in subsection (a)(1), by inserting `subpart 4 of part A or' after `received under';

(ii) in subsection (a)(3)(B)(ii), by inserting `(as determined in accordance with subsection (d))' after `student has completed';

(iii) in subsection (b)(2), by amending subparagraph (C) to read as follows:

`(C) GRANT OVERPAYMENT REQUIREMENTS-

`(i) IN GENERAL- Notwithstanding subparagraphs (A) and (B), a student shall only be required to return grant assistance in the amount (if any) by which--

`(I) the amount to be returned by the student (as determined under subparagraphs (A) and (B)), exceeds

`(II) 50 percent of the total grant assistance received by the student under this title for the payment period or period of enrollment.

`(ii) MINIMUM- A student shall not be required to return amounts of $50 or less.'; and

(iv) in subsection (d), by striking `(a)(3)(B)(i)' and inserting `(a)(3)(B)'.

(B) The amendments made by subparagraph (A) shall be effective for academic years beginning on or after July 1, 2003, except that, in the case of an institution of higher education that chooses to implement such amendments prior to that date, such amendments shall be effective on the date of such institution's implementation.

(5) Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended--

(A) in the second sentence, by striking `mailings, and' and inserting `mailings, or';

(B) by striking `and' at the end of subparagraph (N);

(C) by striking the period at the end of subparagraph (O) and inserting `; and'; and

(D) by adding at the end the following new subparagraph:

`(P) the penalties contained in subsection 484(r) regarding suspension of eligibility for drug related offenses.'.

(6) Section 485B(a) (20 U.S.C. 1092b(a)) is amended--

(A) by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively;

(B) by redesignating the paragraph (5) (as added by section 2008 of Public Law 101-239) as paragraph (6); and

(C) in paragraph (5) (as added by section 204(3) of the National Community Service Act of 1990 (Public Law 101-610))--

(i) by striking `(22 U.S.C. 2501 et seq.)),' and inserting `(22 U.S.C. 2501 et seq.),'; and

(ii) by striking the period at the end thereof and inserting a semicolon.

(7) Section 487(a) (20 U.S.C. 1094(a)) is amended--

(A) in paragraph (22), by striking `refund policy' and inserting `policy on the return of title IV funds'; and

(B) in paragraph (23)--

(i) by moving subparagraph (C) two em spaces to the left; and

(ii) by adding after such subparagraph the following new subparagraph:

`(D) An institution shall be considered in compliance with the requirements of subparagraph (A) for any student to whom the institution electronically transmits a message containing a voter registration form acceptable for use in the State in which the institution is located, or an Internet address where such a form can be downloaded, provided such information is in an electronic message devoted to voter registration.'.

(8) Section 491(c) (20 U.S.C. 1098(c)) is amended by adding at the end the following new paragraph:

`(3) The appointment of members under subparagraphs (A) and (B) of paragraph (1) shall be effective upon publication of the appointment in the Congressional Record.'.

(9) Section 493A (20 U.S.C. 1098c) is repealed.

(10) Section 498 (20 U.S.C. 1099c) is amended--

(A) in subsection (c)(2), by striking `for profit,' and inserting `for-profit,';

(B) in subsection (d)(1)(B), by inserting `and' after the semicolon at the end thereof.

(j) AMENDMENTS TO TITLE V- Section 504(a) (20 U.S.C. 1101c(a)) is amended--

(1) by striking the following:

`(a) AWARD PERIOD-

`(1) IN GENERAL- The Secretary'

and inserting the following:

`(a) AWARD PERIOD- The Secretary'; and

(2) by striking paragraph (2).

(k) AMENDMENTS TO TITLE VII-

(1) Section 714(c) (20 U.S.C. 1135c(c)) is amended--

(A) by striking `section 716(a)' and inserting `section 715(a)'; and

(B) by striking `section 714(b)(2)' and inserting `section 713(b)(2)'.

(2) Section 721(c) (20 U.S.C. 1136(c)) is amended--

(A) by striking `and' at the end of paragraph (4);

(B) by striking the period at the end of paragraph (5) and inserting a semicolon; and

(C) by adding at the end the following new paragraphs:

`(6) to assist such students with the development of analytical skills and study methods to enhance their success in entry into and completion of law school; and

`(7) to award Thurgood Marshall Fellowships to eligible law school students--

`(A) who participated in summer institutes authorized by subsection (d) and who are enrolled in an accredited law school; or

`(B) who are eligible law school students who have successfully completed a comparable summer institute program certified by the Council on Legal Educational Opportunity.'.

(l) AMENDMENT TO HIGHER EDUCATION AMENDMENTS OF 1998- Section 422(d) of the Higher Education Amendments of 1998 (Public Law 105-244; 112 Stat. 1696) is amended by striking `, and ending on September 30, 2002'.

SEC. 102. CLERICAL AMENDMENTS.

(a) DEFINITION- Section 103 (20 U.S.C. 1003) is amended--

(1) by redesignating paragraphs (1) through (16) as paragraphs (2) through (17), respectively; and

(2) by inserting before paragraph (2) (as so redesignated) the following new paragraph:

`(1) AUTHORIZING COMMITTEES- The term `authorizing committees' means the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives.'.

(b) COMMITTEES-

(1) The following provisions are each amended by striking `Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives' and inserting `authorizing committees':

(A) Section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)).

(B) Section 131(c)(4) (20 U.S.C. 1015(c)(4)).

(C) Section 206(d) (20 U.S.C. 1026(d)).

(D) Section 207(c)(1) (20 U.S.C. 1027(c)(1)).

(E) Section 428(g) (20 U.S.C. 1078(g)).

(F) Section 428A(a)(4) (20 U.S.C. 1078-1(a)(4)).

(G) Section 428A(c)(2) (20 U.S.C. 1078-1(c)(2)).

(H) Section 428A(c)(3) (20 U.S.C. 1078-1(c)(3)).

(I) Section 428A(c)(5) (20 U.S.C. 1078-1(c)(5)).

(J) Section 455(b)(8)(B) (20 U.S.C. 1087e(b)(8)(B)).

(K) Section 483(c) (20 U.S.C. 1090(c)).

(L) Section 486(e) (20 U.S.C. 1093(e)).

(M) Section 486(f)(3)(A) (20 U.S.C. 1093(f)(3)(A)).

(N) Section 486(f)(3)(B) (20 U.S.C. 1093(f)(3)(B)).

(O) Section 487A(a)(5) (20 U.S.C. 1094a(a)(5)).

(P) Section 487A(b)(2) (20 U.S.C. 1094a(b)(2)).

(Q) Section 487A(b)(3)(B) (20 U.S.C. 1094a(b)(3)(B)).

(R) Section 498B(d)(1) (20 U.S.C. 1099c-2(d)(1)).

(S) Section 498B(d)(2) (20 U.S.C. 1099c-2(d)(2)).

(2) The following provisions are each amended by striking `Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate' and inserting `authorizing committees'.

(A) Section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)).

(B) Section 428(n)(4) (20 U.S.C. 1078(n)(4)).

(C) The last sentence of section 432(n) (20 U.S.C. 1082(n)).

(D) Section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)).

(E) Section 485(g)(4)(B) (20 U.S.C. 1092(g)(4)(B)).

(3) Section 206(a) (20 U.S.C. 1026(a)) is amended by striking `, the Committee on Labor and Human Resources of the Senate, and the Committee on Education and the Workforce of the House of Representatives' and inserting `and the authorizing committees'.

(4) Section 401(f)(3) (20 U.S.C. 1070a(f)(3)) is amended by striking `Committee on Appropriations and the Committee on Labor and Human Resources of the Senate and the Committee on Appropriations and the Committee on Education and the Workforce of the House of Representatives' and inserting `Committees on Appropriations of the Senate and House of Representatives and the authorizing committees'.

(5) Section 428(c)(9)(K) (20 U.S.C. 1078(c)(9)(K)) is amended by striking `House Committee on Education and the Workforce and the Senate Committee on Labor and Human Resources' and inserting `authorizing committees'.

(6) Section 428I(h) (20 U.S.C. 1078-9(h)) is amended by striking `Chairman of the Senate Labor and Human Resources Committee and the House Committee on Education and Labor' and inserting `chairpersons of the authorizing committees'.

(7) Section 432(f)(1)(C) (20 U.S.C. 1082(f)(1)(C)) is amended by striking `Committee on Education and the Workforce of the House of Representatives or the Committee on Labor and Human Resources of the Senate' and inserting `either of the authorizing committees'.

(8) Section 439(d)(1)(E)(iii) (20 U.S.C. 1087-2(d)(1)(E)(iii)) is amended by striking `Chairman and the Ranking Member on the Committee on Labor and Human Resources of the Senate and the Chairman and the Ranking Member of the Committee on Education and Labor of the House of Representatives' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(9) Paragraphs (3) and (8)(C) of section 439(r) (20 U.S.C. 1087-2(r)) are each amended by striking `Chairman and ranking minority member of the Committee on Labor and Human Resources of the Senate, the Chairman and ranking minority member of the Committee on Education and Labor of the House of Representatives,' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(10) Paragraphs (5)(B) and (10) of section 439(r) (20 U.S.C. 1087-2(r)) are each amended by striking `Chairman and ranking minority member of the Senate Committee on Labor and Human Resources and to the Chairman and ranking minority member of the House Committee on Education and Labor' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(11) Section 439(r)(6)(B) (20 U.S.C. 1087-2(r)(6)(B)) is amended by striking `Chairman and ranking minority member of the Committee on

Labor and Human Resources of the Senate and to the Chairman and ranking minority member of the Committee on Education and Labor of the House of Representatives' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(12) Section 439(s)(2)(A) (20 U.S.C. 1087-2(s)(2)(A)) is amended by striking `Chairman and Ranking Member of the Committee on Labor and Human Resources of the Senate and the Chairman and Ranking Member of the Committee on Economic and Educational Opportunities of the House of Representatives' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(13) Section 439(s)(2)(B) (20 U.S.C. 1087-2(s)(2)(B)) is amended by striking `Chairman and Ranking Minority Member of the Committee on Labor and Human Resources of the Senate and Chairman and Ranking Minority Member of the Committee on Economic and Educational Opportunities of the House of Representatives' and inserting `chairpersons and ranking minority members of the authorizing committees'.

(14) Section 482(d) (20 U.S.C. 1089(d)) is amended by striking `Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives' and inserting `authorizing committees'.

(c) ADDITIONAL CLERICAL AMENDMENTS-

(1) Clauses (i) and (ii) of section 425(a)(2)(A) (20 U.S.C. 1075(a)(2)(A)) are each amended by striking `428A or 428B' and inserting `428B or 428H'.

(2) Section 428(a)(2)(E) (20 U.S.C. 1078(a)(2)(E)) is amended by striking `428A or'.

(3) Clauses (i) and (ii) of section 428(b)(1)(B) (20 U.S.C. 1078(b)(1)(B)) are each amended by striking `428A or 428B' and inserting `428B or 428H'.

(4) Section 428(b)(1)(Q) (20 U.S.C. 1078(b)(1)(Q)) is amended by striking `sections 428A and 428B' and inserting `section 428B or 428H'.

(5) Section 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is amended by striking `428A, 428B,' and inserting `428B'.

(6) Section 428G(c)(2) (20 U.S.C. 1078-7(c)(2)) is amended by striking `428A' and inserting `428H'.

(7) The heading for section 433(e) (20 U.S.C. 1083(e)) is amended by striking `SLS LOANS AND'.

(8) Section 433(e) (20 U.S.C. 1083(e)) is amended by striking `428A, 428B,' and inserting `428B'.

(9) Section 435(a)(3) (20 U.S.C. 1085(a)(3)) is amended--

(A) by inserting `or' at the end of subparagraph (A);

(B) by striking subparagraph (B); and

(C) by redesignating subparagraph (C) as subparagraph (B).

(10) Section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)) is amended by striking `428A(d), 428B(d), 428C,' and inserting `428B(d), 428C, 428H,'.

(11) Section 435(m) (20 U.S.C. 1085(m)) is amended--

(A) in paragraph (1)(A), by striking `, 428A,'; and

(B) in paragraph (2)(D), by striking `428A' each place it appears and inserting `428H'.

(12) Section 438(c)(6) (20 U.S.C. 1087-1(c)(6)) is amended--

(A) by striking `SLS AND PLUS' in the heading and inserting `PLUS'; and

(B) by striking `428A or'.

(13) Section 438(c)(7) (20 U.S.C. 1087-1(c)(7)) is amended by striking `428A or'.

(14) Nothing in the amendments made by this subsection shall be construed to alter the terms, conditions, and benefits applicable to Federal supplemental loans for students (`SLS loans') under section 428A as in effect prior to July 1, 1994 (20 U.S.C. 1078-1).

SEC. 103. STUDY OF TEACHER PREPARATION.

Within six months after the date of enactment of this Act, the Comptroller General shall conduct a study of and submit to Congress a report on--

(1) which States and which institutions of higher education require passage on State teacher licensure exams in order for candidates to be admitted to a teacher preparation program or to declare an education major;

(2) which States and which institutions of higher education award diplomas, degrees, or other certificates to students in any subject area, but subsequently only consider them to have successfully completed a teacher preparation or other education program if they pass one or more State licensure exams;

(3) which States and which institutions of higher education award diplomas, degrees, or other certificates to students in education or teaching, but subsequently only consider them to have successfully completed a teacher preparation or education program if they pass one or more State licensure exams;

(4) the extent to which States and institutions of higher education, through means other than (1), (2), or (3), are, for the purposes of section 207(f)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1027(f)(1)(A)), treating as completing their teacher preparation programs only those students who pass State teacher licensure or certification assessments;

(5) the extent to which the practices described in paragraphs (1) through (4) may mislead or incompletely inform students and policymakers concerning the quality of such teacher preparation programs; and

(6) what assistance, if any, the States or institutions described in paragraphs (1) through (4) give to enrolled students and graduates who take but do not pass one or more teacher licensing exams.

TITLE II--STUDENT LOAN FORGIVENESS

SEC. 201. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SPOUSES, SURVIVING JOINT DEBTORS, AND PARENTS.

(a) DEFINITIONS- For purposes of this section:

(1) ELIGIBLE PUBLIC SERVANT- The term `eligible public servant' means an individual who--

(A) served as a police officer, firefighter, other safety or rescue personnel, or as a member of the Armed Forces; and

(B) died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001;

as determined in accordance with regulations of the Secretary.

(2) ELIGIBLE VICTIM- The term `eligible victim' means an individual who died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001, as determined in accordance with regulations of the Secretary.

(3) ELIGIBLE PARENT- The term `eligible parent' means the parent of an eligible victim if--

(A) the parent owes a Federal student loan that is a consolidation loan that was used to repay a PLUS loan incurred on behalf of such eligible victim; or

(B) the parent owes a Federal student loan that is a PLUS loan incurred on behalf of an eligible victim who became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001.

(4) SECRETARY- The term `Secretary' means the Secretary of Education.

(5) FEDERAL STUDENT LOAN- The term `Federal student loan' means any loan made, insured, or guaranteed under part B, D, or E of title IV of the Higher Education Act of 1965.

(b) RELIEF FROM INDEBTEDNESS-

(1) IN GENERAL- The Secretary shall provide for the discharge or cancellation of--

(A) the Federal student loan indebtedness of the spouse of an eligible public servant, as determined in accordance with regulations of the Secretary, including any consolidation loan that was used jointly by the eligible public servant and his or her spouse to repay the Federal student loans of the spouse and the eligible public servant;

(B) the portion incurred on behalf of the eligible victim (other than an eligible public servant), of a Federal student loan that is a consolidation loan that was used jointly by the eligible victim and his or her spouse, as determined in accordance with regulations of the Secretary, to repay the Federal student loans of the eligible victim and his or her spouse;

(C) the portion of the consolidation loan indebtedness of an eligible parent that was incurred on behalf of an eligible victim; and

(D) the PLUS loan indebtedness of an eligible parent that was incurred on behalf of an eligible victim.

(2) METHOD OF DISCHARGE OR CANCELLATION- A loan required to be discharged or canceled under paragraph (1) shall be discharged or canceled

by the method used under section 437(a), 455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965 (20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is applicable to such loan.

(c) FACILITATION OF CLAIMS- The Secretary shall--

(1) establish procedures for the filing of applications for discharge or cancellation under this section by regulations that shall be prescribed and published within 90 days after the date of enactment of this Act and without regard to the requirements of section 553 of title 5, United States Code; and

(2) take such actions as may be necessary to publicize the availability of discharge or cancellation of Federal student loan indebtedness under this section.

(d) AVAILABILITY OF FUNDS FOR PAYMENTS- Funds available for the purposes of making payments to lenders in accordance with section 437(a) for the discharge of indebtedness of deceased or disabled individuals shall be available for making payments under section 437(a) to lenders of loans as required by this section.

(e) APPLICABLE TO OUTSTANDING DEBT- The provisions of this section shall be applied to discharge or cancel only Federal student loans (including consolidation loans) on which amounts were owed on September 11, 2001. Nothing in this section shall be construed to authorize any refunding of any repayment of a loan.

TITLE III--OPPORTUNITIES FOR HIGHER EDUCATION VIA TELECOMMUNICATIONS

SEC. 301. EXCEPTION TO 50 PERCENT CORRESPONDENCE COURSE LIMITATIONS.

(a) DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR TITLE IV PURPOSES- Section 102(a) (20 U.S.C. 1002(a)) is amended by adding at the end the following new paragraph:

`(7) EXCEPTION TO LIMITATION BASED ON COURSE OF STUDY-

`(A) EXCEPTION- Courses offered via telecommunications (as defined in section 484(l)(4)) shall not be considered to be correspondence courses for purposes of subparagraph (A) or (B) of paragraph (3) for any institution that--

`(i) is participating in either or both of the loan programs under part B or D of title IV on the date of enactment of the Fed Up Higher Education Technical Amendments Act of 2003;

`(ii) has a cohort default rate (as determined under section 435(m)) for each of the 3 most recent fiscal years for which data are available that is less than 10 percent; and

`(iii)(I) has notified the Secretary, in a form and manner prescribed by the Secretary (including such information as the Secretary may require to meet the requirements of subclause (II)), of the election by such institution to qualify as an institution of higher education by means of the provisions of this paragraph; and

`(II) the Secretary has not, within 90 days after such notice, and the receipt of any information required under subclause (i), notified the institution that the election by such institution would pose a significant risk to Federal funds and the integrity of programs under title IV.

`(B) LOSS OF ELIGIBILITY FOR COHORT DEFAULT RATE- If an institution qualifies for the exception provided by subparagraph (A), but has a cohort default rate for a subsequent fiscal year that equals or exceeds 10 percent, such institution shall cease to be qualified for such exception at the end of the award year in which that cohort default rate was released.'.

(b) DEFINITION OF ELIGIBLE STUDENT- Section 484(l)(1) (20 U.S.C. 1091(l)(1)) is amended by adding at the end the following new subparagraph:

`(C) EXCEPTION TO 50 PERCENT LIMITATION-

`(i) EXCEPTION- Notwithstanding the 50 percent limitation in subparagraph (A), a student enrolled in a course of instruction described in such subparagraph shall not be considered to be enrolled in correspondence courses if the student is enrolled in an institution that--

`(I) is participating in either or both of the loan programs under part B or D of title IV on the date of enactment of the Fed Up Higher Education Technical Amendments Act of 2003;

`(II) has a cohort default rate (as determined under section 435(m))

for each of the 3 most recent fiscal years for which data are available that is less than 10 percent; and

`(III)(aa) has notified the Secretary, in form and manner prescribed by the Secretary (including such information as the Secretary may require to meet the requirements of subclause (II)), of the election by such institution to qualify its students as eligible students by means of the provisions of this subparagraph; and

`(bb) the Secretary has not, within 90 days after such notice, and the receipt of any information required under subclause (I), notified the institution that the election by such institution would pose a significant risk to Federal funds and the integrity of programs under title IV.

`(ii) LOSS OF ELIGIBILITY FOR COHORT DEFAULT RATE- If an institution qualifies for the exception provided by clause (i), but has a cohort default rate for a subsequent fiscal year that equals or exceeds 10 percent, such institution shall cease to be qualified for such exception at the end of the award year in which that cohort default rate was released.'.

SEC. 302. EVALUATION AND REPORT.

(a) INFORMATION FROM INSTITUTIONS-

(1) INSTITUTIONS COVERED BY REQUIREMENT- The requirements of paragraph (2) apply to any institution of higher education that has notified the Secretary of Education of an election to qualify for the exception to limitation based on course of study in section 102(a)(7) of the Higher Education Act of 1965 (20 U.S.C. 1002(a)(7)) or the exception to the 50 percent limitation in section 484(l)(1)(C) of such Act (20 U.S.C. 1091(l)(1)(C)).

(2) REQUIREMENTS- Any institution of higher education to which this paragraph applies shall comply, on a timely basis, with the Secretary of Education's reasonable requests for information on changes in--

(A) the amount or method of instruction offered;

(B) the types of programs or courses offered;

(C) enrollment by type of program or course;

(D) the amount and types of grant, loan, or work assistance provided under title IV of the Higher Education Act of 1965 that is received by students enrolled in programs conducted in nontraditional formats; and

(E) outcomes for students enrolled in such courses or programs.

(b) REPORT BY SECRETARY REQUIRED- The Secretary of Education shall conduct by grant or contract a study of, and by March 31, 2005, submit to the Congress, a report on--

(1) the effect that the amendments made by section 301 of this Act have had on--

(A) the ability of institutions of higher education to provide distance learning opportunities to students; and

(B) program integrity;

(2) with respect to distance education or correspondence education courses at institutions of higher education to which the information requirements of subsection (a)(2) apply, changes from year-to-year in--

(A) the amount or method of instruction offered and the types of programs or courses offered;

(B) the number and type of students enrolled in distance education or correspondence education courses;

(C) the amount of student aid provided to such students, in total and as a percentage of the institution's revenue; and

(D) outcomes for students enrolled in distance education or correspondence education courses, including graduation rates, job placement rates, and loan delinquencies and defaults; and

(3) any further improvements that should be made to the provisions amended by section 301 of this Act (and related provisions), in order to accommodate nontraditional educational opportunities in the Federal student assistance programs while ensuring the integrity of those programs.

END