Higher Education Act Amendments of 1991

Higher Education Act Amendments of 1991 - Amends the Higher Education Act of 1965 (HEA) to revise and reauthorize its programs.

Title I: Access and Retention - Establishes a new HEA title I, Access and Retention, to provide special programs and projects: (1) to identify and encourage students from low-income or educationally disadvantaged backgrounds who have potential for postsecondary and graduate education; and (2) to prepare students from such backgrounds for such education. (Replaces the current title I, Postsecondary Programs for Nontraditional Students.)

Establishes a new Precollege Outreach Program of grants to States (replacing the current part A program) to support outreach services for individuals from low-income and educationally disadvantaged backgrounds in order to help them successfully complete secondary education and begin and succeed in postsecondary education. Authorizes States to make subgrants to eligible entities to carry out one or more of such services. Provides for a gradually declining Federal share of project costs, from 90 percent in the first year, with five percent reductions in succeeding years leveling off at 70 percent for the fifth year and thereafter. Includes among criteria to be used by the State agency in selecting projects the degree to which an applicant's service area include large numbers of low-income or first-generation college students. Prohibits an institution of higher education from using such grant funds for recruitment of students to enroll at that institution. Authorizes appropriations.

Establishes a new Student Support Service Program of grants to institutions of higher education (replacing the current part B Natinal Programs) to support individuals pursuing postsecondary education programs who are first-generation college students or from low-income or educationally disadvantaged backgrounds. Directs the Secretary, in making such grant awards, to give highest priority to projects at institutions with the lowest educational and general expenditures per full-time equivalent student. Sets forth types of authorized services to assist in motivating and preparing students for postsecondary education. Authorizes appropriations.

Establishes a new Ronald E. McNair Graduate Outreach Program of grants to institutions of higher education (combining and replacing certain current part C programs) for services to eligible individuals from low-income and educationally disadvantaged backgrounds to prepare them for graduate, professional, and doctoral study. Directs the Secretary not to make such a grant award without assurances that: (1) at least two-thirds of project participants will be first-generation college students from low-income families; (2) remaining participants will be from a group underrepresented in graduate education; (3) participants will be enrolled in a degree program, at an institution of higher education; and (4) participants in summer research internships will have completed their sophomore year in postsecondary education. Sets forth authorized uses of grant funds, including opportunities for research or other scholarly activities, summer internships, and fellowships. Authorizes appropriations.

Title II: National Graduate Fellowships Program - Repeals HEA titles II (Academic Library and Information Technology Enhancement) and IX (Graduate Programs).

Establishes a new HEA title II, National Graduate Fellowships Program, for competitive grants to institutions of higher education to provide financial support to highly qualified individuals in graduate studies in areas of national need (including individuals from groups traditionally underrepresented in such studies in such areas).

Designates each fellowship recipient a National Graduate Fellow. Limits the fellowship stipend to five years. Authorizes the Secretary to award continuation grants to institutions demonstrating satisfactory progress. Requires institutions receiving them to give preference in awarding fellowship stipends to students who have received National Graduate Fellowships and who demonstrate satisfactory progress in their studies. Sets forth reporting requirements.

Directs the Secretary to make new grants under title II only to the extent that funds remain from continued prior funding under HEA to recipients of graduate fellowship assistance for: (1) the Foreign Language and Areas Studies Fellowship Program; (2) the Patricia Roberts Harris Fellowship Program; (3) the Jacob K. Javits Fellows Program; or (4) the Graduate Assistance in Areas of National Need Program. Requires institutions receiving title II grants to give preference in awarding fellowships to students who previously received such assistance under a listed program. Allows a student who received such assistance to subsequently receive a National Graduate Fellowship, but limits the combined period of assistance to not more than five years.

Authorizes appropriations.

Title III: Institutional Aid - Revises HEA title III, Institutional Aid.

Eliminates provisions for special consideration for certain activities. Deems these simply as allowable program activities.) Revises eligibility criteria for institutions to require that their average educational and general expenditures be lower, by a percentage determined annually, than the same expenditures per full-time equivalent undergraduate student of institutions that offer similar instruction. Eliminates as a requirement for such assistance that such institutions are to have been authorized for the preceding five years to offer a specified degree program and accredited or making reasonable progress toward accreditation. Eliminates provisions for waivers of such requirement for institutions with specified percentages of minority students. Limits grant awards to only one such grant, with a maximum five-year duration, to any eligible institution, except that a one-year planning grant may be awarded for preparing plans and applications. Requires: (1) grant applications to describe measurable goals for the institution's management and academic programs, and a plan for achieving them; and (2) continuation applications to demonstrate progress toward achieving them.

Revises the program of grants to strengthen Historically Black Colleges and Universities. Allows the use of grant funds to establish or improve a development office to strengthen or improve contributions from alumni and the private sector. Prohibits awarding to any one undergraduate institution: (1) more than two such grants for a period not to exceed ten years from September 30, 1987; or (2) any grant exceeding five years. Requires grant applications to describe measurable goals for the institution's financial management as well as academic goals, and plans to achieve them. Revises and renames a certain program Endowment Challenge Grants for Institutions Eligible for Assistance. Increases the amount (from $10,000,000 to $20,000,000) which appropriations for such grants must exceed before the Secretary may make a two-to-one matching endowment grant exceeding $1,000,000 to an institution. Gives priority for endowment grants to applicants that have received another title III grant within the preceding five years.

Revises title III general provisions.

Authorizes appropriations.

Title IV: Student Assistance - Part A: Grants to Students - Amends HEA title IV (Student Assistance) with respect to the program of Grants to Students in Attendance at Institutions of Higher Education.

Subpart 1: Pell Grants - Extends Pell Grant program authority through FY 1997.

Eliminates a requirement that the Secretary make an advance payment to eligible institutions of at least 85 percent of the amount each institution requests as needed to pay Pell Grants to eligible students.

Revises requirements for the amount of Pell Grants. Sets the amount of an award to a student at the lesser of: (1) the specified maximum award less the expected family contribution; or (2) the percentage (based on family-income level) of the amount of the student's need for financial assistance (i.e. cost of attendance minus expected family contribution). Increases the maximum award amount to $3,700 for 1992-3 and the four succeeding award years. Sets forth a table of percentages of student need for award computation. Increases the minimum allowable award from $200 to $400.

Eliminates certain restrictions on the award of Pell Grants to students attending on a less than half-time basis.

Revises the period of eligibility for Pell Grants. Limits such period to the full-time equivalent of three academic years in the aggregate in the case of all undergraduate degree or certificate programs normally requiring two years or less. Specifies that longer eligibility periods for longer programs are cumulative and include periods for which the student received a Pell Grant under shorter programs

Revises requirements for adjustments for insufficient appropriations for the Pell Grant program. Provides for reduction of all awards by a percentage determined in accordance with a schedule of reductions by the Secretary. (Currently certain awards are held harmless.) Increases the minimumm allowable Pell Grant, under such reduction formula, from $100 to $200.

Eliminates certain limitations on the availability of Pell Grant funds when excess amounts are available at the end of a fiscal year.

Subpart 2: Supplemental Educational Opportunity Grants - Extends the authorization of appropriations for the Supplemental Educational Opportunity Grants (SEOG) program, but reduces the amount of funding.

Reduces the Federal share of SEOG awards to not more to not more than 50 percent in FY 1992 and thereafter. (Current law provides for a maximum Federal share of 85 percent in FY 1991, and allows an even greater Federal share if the Secretary determines it warranted.)

Subpart 3: Repeals - Repeals authority for the following programs: (1) Grants to States for State Student Incentives (SSI); (2) Special Programs for Students from Disadvantaged Backgrounds (TRIO programs); (3) Assistance to Institutions of Higher Education (including the Veterans Education Outreach Program); and (4) Special Child Care Services for Disadvantaged College Students.

Subpart 4: Presidential Achievement Scholarship Program - Creates a Presidential Achievement Scholarship Program to award scholarships to Pell Grant recipients who demonstrate high levels of academic achievement.

Authorizes appropriations.

Allows Presidential Achievement Scholars to receive up to four scholarships, each for one academic year, for full-time undergraduate study (or five scholarships for full-time undergraduate study programs that require attendance for five academic years).

Bases eligibility in the first year of postsecondary education on the student's receiving a Pell Grant and either: (1) ranking, or having ranked, in the top ten percent, by grade point average, of his or her high school graduating class; or (2) achieving at least the announced minimum score on one of the nationally administered, standardized tests identified by the Secretary. Bases eligibility after the first year on the student's receiving a Pell Grant and: (1) being enrolled in a program of study of at least two years that lead to a degree or certificate; and (2) ranking in the top 20 percent, by cumulative grade point average or equivalent, of his or her postsecondary education class as of the last academic year of study completed. Provides that a student's eligibility for such a scholarship does not depend on receipt of scholarship or Pell Grant in the previous academic year. Requires full-time attendance at the institution as a condition for receiving such a scholarship.

Directs the Secretary to establish scholarship award procedures, including deadlines for consideration of students. Requires disbursement of scholarship proceeds to the institutions, but not until the student recipients are enrolled.

Sets such scholarship award at $500 for any academic year. Reduces such amount by the amount it exceeds the student's cost of attendance by itself or when combined with other Federal or non-Federal grant or scholarship assistance in the the academic year. Provides for proportionate reductions in each award to adjust for insufficient appropriations.

Subpart 5: National Science Scholars Program - Creates a National Science Scholars Program to award scholarships to outstanding students, selected by the President, for the study of physical, life, or computer sciences, mathematics, or engineering.

Authorizes appropriations.

Provides for an initial award for the first year of undergraduate study and a continuation award for the remaining three (or four) years, as appropriate. Allows National Science Scholars to use such award to attend any defined institution of higher education.

Requires the Director of the National Science Foundation (NSF Director) and the Secretary to jointly establish criteria for selection of scholars for initial year awards. Requires such criteria to include potential to successfully complete a postsecondary program, and motivation to pursue a career, in such fields. Allows consideration to be given to individual financial need and to the nondiscriminatory promotion of participation by minorities and individus with disabilities. Requires States to establish a nominating committee, if they desire to qualify student residents for selection. Requires each State nominating committee to submit to the President nominations of from four to ten individuals from each congressional district. Requires priority ranking of such nominations. Requires the President to select and announce two such scholars for each academic year from each congressional district. Directs the Secretary to make continuation awards of additional scholarships to recipient of initial awards who meet specified requirements. Requires disbursement of scholarship proceeds to the institutions, but not until the student recipients are enrolled.

Requires the NSF Director and the Secretary to encourage the support and assistance of civic groups, the business community, professional associations, institutions of higher education, and others in providing scholarship assistance to National Science Scholarship finalists.

Sets forth eligibility requirements for initial and continuation awards. Allows the Secretary to waive full-time attendance requirements in unusual circumstances. Directs the Secretary to determine circumstances for eligibility reinstatement after an interruption of schooling for personal reasons.

Requires the Secretary annually to notify all public and private secondary schools and all institutions of higher education in each State of the availability of such scholarships.

Sets such a scholarship award at $6,000 for any academic year. Reduces such amount by the amount it exceeds the student's cost of attendance by itself or when combined with other Federal and non-Federal grant or scholarship assistance in the academic year. Provides for proportionate reductions in each award to adjust for insufficient appropriations.

Requires priority consideration to be given students receiving such scholarships, to the extent they are otherwise qualified, for federally financed summer employment in federally funded research and development centers that complements and reinforces their educational program. Requires Federal agencies to participate actively in providing appropriate summer employment opportunities for such students.

Repeals provisions of the Excellence in Mathematics, Science, and Engineering Education Act of 1990 which currently authorize the National Science Scholars Program.

Subpart 6: Special Programs for Students Whose Families Are Engaged in Migrant and Seasonal Farmwork - Revises the Special Programs for Students Whose Families Are Engaged in Migrant and Seasonal Farmwork. Renames certain grants as grants to build the program capacity of educational agencies, institutions, and organizations to operate high school equivalency programs (HEP) and college assistance migrant programs (CAMP) for migrant students.

Makes State and local educational agencies (as well as as institutions of higher education and private nonprofit organizations) eligible for such HEP grants.

Allows provision of HEP services to individuals 16 years of age or older, or beyond the State age of compulsory school attendance, and not currently enrolled in school. (Current laws requires 17 years of age or over.)

Limits authorized CAMP services, with specified exceptions, to those services necessary to assist migrant students in completing their first year of college. Requires CAMP grantees to provide follow-up services for migrant students after their first year of college. Authorizes use of up to ten percent of the CAMP grant for such follow-up services. Requires such follow-up services to include: (1) monitoring and reporting on student academic progress; and (2) referring students to providers of counseling services, academic assistance, or financial aid.

Requires each project application to include a long-range management plan describing how the applicant will, over the grant period, gradually assume financial responsibility to provide services substantially similar to those proposed in the application.

Requires the Secretary in making grants, to consider the geographic distribution of the persons to be served by grantees.

Requires grant awards to be one-time, nonrenewable grants for: (1) a five-year period for first-time grantees; and (2) a three-year period for previous grantees. Provides for a Federal share of 90 percent in the first year, declining to 50 percent in the last year of such grants. Retains the $150,000 minimum allocation for each project.

Extends the authorization of appropriations for the the HEP and CAMP programs.

Subpart 7: Robert C. Byrd Honors Scholarship Program - Revises the Robert C. Byrd Honors Scholarship Program, particularly the formula for allocation of such scholarship program funds among States. Bases such allocation on relative population ages five through 17. Provides that each State shall receive at least ten scholarships. Allocates to the State $1,500 per scholarship.

Eliminates a requirement that ten such scholars be selected for each congressional district. Requires the State education agency to adopt selection procedures to ensure an equitable geographic distribution of awards within the State.

Eliminates requirements for an award ceremony.

Extends the authorization of appropriations for the Robert C. Byrd Honors Scholarship Program.

Part B: Guaranteed Student Loans - Revises the Robert T. Stafford Student Loan program.

Extends the authorization for, and the amount of, new loan principal that may be made to students covered by Federal loan insurance.

Increases the annual and aggregate loan limits under the Stafford loan and the Supplemental Loans for Students (SLS) programs.

Requires lenders to: (1) offer Stafford and SLS loan borrowers the option of repaying such loans on a graduated repayment schedule under specified conditions; (2) obtain the borrower's authorization for entry of judgment against the borrower in the event of default; and (3) obtain the borrower's driver's license number, if any, at the time of loan application (for the parent loan PLUS program, as well).

Eliminates a provision which allowed an institution to refuse to certify a student's eligibility for a loan, or allowed it to certify a lesser amount, under specified conditions.

Revises loan deferment provisions. Retains deferment while the borrower is in specified courses of study. Replaces the various current categorical deferments with a hardship deferment of up to three years in the aggregate. Requires the lender to grant specified forbearance if the borrower is a Peace Corps or VISTA volunteer does not qualify for such hardship deferment.

Revises provisions for Federal reinsurance coverage. Revises the period in which guaranty agencies must file reinsurance claims. Revises requirements for calculation and payment of such reinsurance.

Requires in the case of Stafford, SLS, and PLUS loan applicants over age 21, that the lender: (1) obtain a credit report; and (2) require a cosigner for such applicants who have adverse credit histories. Allows the lender to charge such applicants for the actual cost of such credit reports, up to $25.

Requires a 60-day delayed disbursement of Stafford or SLS loans to first-year undergraduates at institutions with default rates of 30 percent or greater. (Retains the current 30-day delayed disbursement for first-year undergraduates at institutions with default rates less than 30 percent.)

Revises provisions for eligibility limitations, suspensions, terminations, other hearing procedures, and fines for lenders or institutions that violate program requirements.

Sets forth conflict-of-interest restrictions on guaranty agency officers and employers. Prohibits any guaranty agency from permitting any of its officers or employees, or any member of their immediate families, to have a direct financial interest in, or serve as an officer or employee of, any lender, secondary market, contractor, or service with which the guaranty agency does business.

Includes financial information among the information the Secretary may reasonably require from a guaranty agency to carry out the student loan programs and protect the U.S. financial interest.

Revises the administrative cost and collection retention allowances for guaranty agencies.

Revises provisions for oversight of guaranty agencies. Authorizes the Secretary to require a guaranty agency to submit and implement a management plan if the ratio of its reserve funds to outstanding guarantees is less than a set level, or if its administrative or financial condition jeopardizes its continued ability to perform its responsibilities under its guaranty agreement. Authorizes the Secretary to terminate the guaranty agreement with any agency that fails to submit an acceptable management plan or fails to improve substantially its condition in accordance with such a plan.

Authorizes the Secretary to assume guaranty agency functions of agencies whose agreements are terminated by the Secretary or themselves. Limits the Secretary's liability for any outstanding liabilities of a guaranty agency, the functions of which the Secretary has assumed, to the fair market value of assets assigned by the agency to the Secretary, minus any necessary liquidation or administrative costs.

Requires State backing of designated guaranty agencies. Requires each State to guarantee, with its full faith and credit or the equivalent, all student loans guaranteed by the guaranty agency designated for that State for borrowers attending eligible institutions in that State. Provides that a State may elect to guarantee, in addition, student loans guaranteed by any other guarantee agency for borrowers who are attending eligible institutions in that State. Requires the State, if such a guaranty agency backed by the State is unable to discharge its insurance obligation, to be responsible for discharging them, as well as administrative costs associated with transferring the guaranty agency's operations to another entity. Directs the Secretary, if a State discharges such insurance obligations, to pay the State the amount the guaranty agency would otherwise have received as reimbursement. Directs the Secretary, unless a State demonstrates by January 1, 1994, that it is backing the designated guaranty agency, to assess institutions of higher education participating in the student loan program that are located in that State a fee based on the risk of financial loss to the Federal Government that the State would otherwise assume. Requires such fees to be deposited in the student loan insurance fund.

Requires a State to pay a share of default costs in specified circumstances. Allows a State to charge a fee to an institution of higher education in the State participating in the loan program according to an approved fee structure based on the institution's cohort default rates and the State's risk of loss under such requirement

Eliminates the student loan program eligibility of foreign institutions (but not of study abroad that is part of the curriculum of U.S. institutions).

Revises the definition of cohort default rate.

Reduces the special allowance rates for holders of loans for which the cohort default rate exceeds 20 percent.

Requires the Student Loan Marketing Association (Sallie Mae) to notify the Secretary, within 15 days, when: (1) it makes a loan or extends any other form of credit to a guaranty agency; (2) its cumulative loans or other forms of credit outstanding to any one lender exceed $50,000,000; or (3) it makes any additional loans or other forms of credit to a lender whose cumulative outstanding loans from it exceed $50,000,000. Requires Sallie Mae's annual report on its operations and activities: (1) to be submitted to the Secretary and the Congress (currently the President and the Congress); and (2) to include specific information regarding its investments and debts, the characteristics of its student loan portfolio, and other data which the Secretary may reasonably require.

Part C: Work-Study Programs - Extends the authorization of appropriations for Work-Study Programs (but reduces the amount of such funding).

Lowers the maximum Federal share of the the compensation of students employed in the work-study program to 50 percent for FY 1992 and succeeding fiscal years. (Current law sets it at 70 percent for academic year 1990-1991 and succeeding academic years.)

Eliminates special incentives (such as increased Federal administrative allowance and increased Federal share of student compensation for community service-learning jobs under the work-study program.

Lowers the maximum Federal share of the cost of any job location and development program, under the work-study program from 80 percent to 50 percent.

Prohibits students attending proprietary institutions of higher education from being employed by such institutions under the work-study program (but allows them to participate in work-study program employment by a government agency or a private nonprofit organization).

Reduces from $200 to $100 the amount of work-study program compensation in excess of need that a student may receive.

Eliminates provisions for private sector employment agreements under the work-study program.

Part D: Income Contingent Loan Program - Extends through FY 1996 the authorization of appropriations for the Income Contingent Direct Loan Program (ICL program) (and increases the amount of such funding).

Eliminates the limitation that the Secretary may not enter into ICL agreements with more than ten institutions of higher education.

Makes consortia of institutions of higher education (as well as single institutions) eligible to participate in the ICL program.

Provides for an aggregate ICL loan limit of $50,000 for individual graduate and professional students, including any such loans made to such persons before they become graduate or professional students. Provides for an annual limit of $10,000 on ICL loans to graduate and professional students. (Retains current limits for undergraduates.)

Requires ICL applicants to provide their driver license number, if any. Requires institutions to: (1) obtain a credit report on any ICL applicant over age 21; and (2) require any such applicant with an adverse credit history to obtain a cosigner. Requires the Secretary to report to the Congress on the cost-effectiveness of the ICL program, its impact on participating institutions and students, and the feasibility of extending it to a loan program of general applicability.

Part E: Perkins Loan Program - Authorizes appropriations for the Perkins Loan Program, but only for reimbursement of institutions for Perkins loans that are cancelled for certain public service. Terminates the authorization of appropriations for: (1) Federal contributions to student loan funds established under such program; and (2) continuation loans to certain students who have received earlier Perkins Loans.

Revises provisions for terms of such loans and cancellation for public service.

Extends provisions for distribution of assets from such student loan funds.

Repeals provisions for allocation of funds.

Part F: Need Analysis - Revises provisions for need analysis to apply them to all need-based student assistance programs, including Pell Grants (which currently have a separate need analysis system).

Revises the definitions of cost of attendance and family contribution, as well as provisions for data elements used in determining the expected family contribution.

Revises the formula for calculation of the expected family contribution for a dependent student to eliminate references to the student's spouse.

Allows application of any parents' negative available income: (1) to reduce the parents' income supplement amount from assets; and (2) if there is any negative amount remaining after that is reduced to zero, to increase the allowances against the dependent student's income.

Revises the minimum dependent student contribution to be the greater of: (1) specified amounts that vary according to family total income; or (2) 70 percent of the student's total income, minus the adjustment to student income.

Eliminates certain exceptions to the general need analysis calculation for dislocated workers and displaced homemakers.

Excludes from the calculation of net worth the net value of the principal place of residence for the families of dependent students and for independent students, if their adjusted gross income is less than $20,000.

Revises the tables for determination of standard maintenance allowance, employment expense allowance, adjusted net worth of business and of farm, asset protection allowance, and parents' assessment from available income.

Revises the asset protection allowance to provide for consideration of the average age of both parents.

Revises provisions for family contribution for married or single independent students without dependents (including various revisions similar to those described for dependent students). Includes married, as well as unmarried, students under this category of independent students without dependents. Revises provisions for minimum student contribution under this category. Revises tables for determining various allowances and other factors.

Revises provisions relating to the family contribution for married or single independent students with dependents (including provisions similiar to those in other categories). Revises tables for determining various allowances and other factors.

Eliminates certain restrictions on the Secretary's authority to prescribe regulations to carry out need analysis requirements. Revises provisions relating to development of revised tables of assessment rates for purposes of such need analysis.

Authorizes the Secretary to prescribe regulations specifying situations in which the data elements considered in determining a student's expected family contribution may be modified to accommodate the special circumstances of the student.

Part G: General Provisions - Revises general provisions relating to student assistance programs.

Includes as an institution of higher education for the student assistance programs any institution that provides programs of at least six months (or 600 clock hours) that prepare students for gainful employment in recognized occupations, and that has been in existence for at least two years.

Makes ineligible for student assistance program participation for specified periods any institution whose cohort default rate equals or exceeds a specified threshold percentage.

Revises provisions for proprietary institutions of higher education. Authorizes the Secretary, if a particular category of proprietary institution does not meet specified student assistance program requirements because there is no nationally recognized accrediting agency or association qualified to accredit such institutions, to: (1) appoint an advisory committee to recommend qualifying standards; and (2) determine whether the particular schools meet them.

Provides for reduction of student assistance loan award maximums for short-term programs.

Revises provisions relating to a master calendar.

Revises provisions for a common financial reporting form for determination of expected family contribution.

Requires students, in order to remain eligible for assistance, to satisfy specified minimum academic achievement standards, including an academic standing above the bottom ten percent of their postsecondary class.

Directs the Secretary to implement a system of verification of immigration status.

Revises requirements for borrower information to be submitted to the institution during the exit interview.

Eliminates certain provisions for training in financial aid and student support services.

Requires any institution participating in any student assistance program to have in effect a fair and equitable refund policy and to provide a written statement of it, with examples, to prospective students.

Revises provisions for student assistance program participation agreements. Requires the institution to acknowledge the authority of the Secretary, guaranty agencies, accrediting agencies, and State licensing bodies to share with each other any information pertaining to the institution's eligibility to participate in such programs. Prohibits institutions from providing any incentive payments for securing enrollments to any persons or entities engaged in any student recruiting or admission activities or in making decisions regarding the award of student financial assistance. Eliminates the requirement that hearings be on the record, with respect to program participation limitation, suspension, or termination procedures.

Authorizes the Secretary to conditionally certify an institution's eligibility to participate in student assistance programs, under specified circumstances.

Provides for loan collection wage garnishment. Authorizes a guaranty agency, or the Secretary where appropriate, to garnish the disposable pay of an individual to collect the amount owed or the required repayment, subject to certain conditions.

Provides for data matching. Authorizes the Secretary to obtain from Federal or State agencies specified information relating to an individual for student loan collection purposes. Directs the Secretary of Labor to enter into an agreement to provide prompt access for the Secretary to wage and unemployment compensation claims information and data maintained by or for the Department of Labor or State employment security agencies.

Subjects to specified criminal penalties attempts to commit specified offenses.

Amends the Higher Education Technical Amendments of 1991 to make permanent the elimination of limitations on actions to collect defaulted student loans or grant overpayments.

Title V: Education Recruitment, Retention, and Development - Establishes a new Partnerships for Innovative Teacher Education program, replacing the current Midcareer Teacher Training for Nontraditional Students program. Authorizes the Secretary to make grants to and contracts with State and local educational agencies, institutions of higher education, and consortia of such institutions and agencies to plan, establish, and operate teaching schools to develop and put into practice the best knowledge about teaching. Provides that such awards shall be for a term of three years, with renewals for two additional years under specified conditions. Provides for applications, priorities, uses of funds by award recipients, and authorized activities of such teaching schools. Authorizes appropriations. Sets the Federal share at 75 percent for the first three years and 50 percent for the final two years.

Repeals provisions for School, College, and University Partnerships.

Retains Professional Development and Leadership Programs. Authorizes appropriations to complete the final year of funding for the territories under provisions for Leadership in Educational Administration Development. Repeals provisions for Professional Development Resource Centers and Leadership in Educational Administration Development.

Retains Teacher Scholarships and Fellowships.

Renames the Congressional Teacher Scholarship Programs the Paul Douglas Teacher Scholarship Program. Makes such scholarships available to outstanding high school graduates who demonstrate an interest in teaching. Authorizes appropriations. Revises requirements for the teaching service obligation of certain scholarship recipients, repayment conditions, assurances of pursuing a teaching career, and maintenance of academic achievement.

Revises the Christa McAuliffe Fellowship Program to authorize appropriations. Bases allotment of funds on the number of public school teachers in each State and other specified jurisdictions. Authorizes the Secretary, in extraordinary circumstances, to waive or defer all or a portion of the service requirement, or to allow fellows to fulfill their service requirement by teaching in another school or school district. Requires States, in making fellowship awards, to give priority to applicants proposing fellowship projects involving pursuit of eligible activities on a full-time basis as part of a sabbatical. Eliminates the requirement that announcement of such awards be made in a public ceremony.

Repeals provisions for State Task Forces on Teacher Training.

Title VI: International Education Programs - Revises the International and Foreign Language Studies program for graduate and undergraduate language and area centers to eliminate stipends and allowances for: (1) individuals undergoing advanced training; and (2) students beginning their third year of graduate training.

Repeals provisions for grants to institutions of higher education or public or private nonprofit library institutions or consortia to acquire, maintain bibliographic data on, preserve, and make available to researchers and scholars certain periodicals published outside the United States which are not commonly held by U.S. academic libraries.

Authorizes appropriations to carry out International Education Programs.

Title VII: College Facilities Loans and Insurance - Revises and redesignates the Construction, Reconstruction, and Renovation of Academic Facilities Loans and Insurance program to: (1) provide higher education institutions with access to private capital construction debt through the College Construction Loan Insurance Association; and (2) provide for servicing of the remaining loan portfolio of the Higher Education Facilities Loans, College Housing Loans, and College Housing and Academic Facilities Loans authorized before the effective date of this Act.

Repeals the authorization of appropriations and other provisions for: (1) Grants for the Construction, Reconstruction, and Renovation of Undergraduate Academic Facilities; (2) Grants for Construction, Reconstruction, and Renovation of Graduate Academic Facilities; (3) Loans for Construction, Reconstruction, and Renovation of Academic Facilities; (4) Grants to Pay Interest on Debt; (5) Housing and Other Educational Facilities Loans; and (6) Special Programs.

Authorizes appropriations for remaining programs.

Title VIII: Cooperative Education - Extends the authorization of appropriations for Cooperative Education (but reduces the amount of such funding).

Eliminates certain reservations of funds for specified categories of projects. (Retains the current division of 75 percent of funds for grants for cooperative education programs and 25 percent for demonstration and innovation projects, training and resource centers, and research.)

Defines cooperative education as the provision of alternating or parallel periods of academic study and public and private employment in order to give students work experience related to their academic or occupational objectives and an opportunity to earn the funds necessary for continuing and completing their education.

Revises matching requirements for cooperative education grants. Requires grant applicants to describe fiscal support plans to ensure that such programs shall continue beyond the five-year period of Federal assistance at not less than the level of expenditures for the initial year of Federal assistance. Authorizes the Secretary to elect not to make a continuation award to a fund recipient that has failed to maintain such fiscal effort in years after the grant period. Requires each recipient to document to the Secretary its maintenance of fiscal effort beyond the five-year period of Federal assistance.

Revises grant application requirements to require descriptions of: (1) the extent to which programs in the academic discipline for which the application is made have had a favorable reception by public and private sector employers; and (2) the plans the applicant will carry out to evaluate their cooperative education program at the end of the grant period.

Eliminates certain factors for special consideration of applications. Directs the Secretary to give special consideration to applications which demonstrate a commitment to serving disadvantaged students and students with disabilities.

Revises provisions relating to the duration of grants. Provides that: (1) only institutions that have received such a grant before enactment of this Act shall be eligible to receive one additional continuation grant of not more than five years; and (2) all other institutions may receive only a single five-year grant.

Revises provisions for training and resource centers to provide that their improvement of materials used in cooperative education programs shall take place in conjunction with other specified activities.

Title IX: Postsecondary Improvement Programs - Revises provisions for the Fund for the Improvement of Postsecondary Education (FIPSE). Repeals consultation provisions which prohibit any FIPSE grant or contract unless it has been submitted to the appropriate State entity and that entity has had an opportunity to submit comments and recommendations to the Secretary.

Specifies that the Secretary appoints the Director of the National Board of FIPSE. Revises Board functions and repeals a requirement for a minimum number of Board meetings annually.

Eliminates provisions requiring the Director to establish grant and contract review and evaluation procedures, and prohibiting such procedures from being subject to any review outside of officials responsible for FIPSE administration.

Extends the authorization of appropriations for the FIPSE program.

Revises and renames the Minority Science and Engineering Programs the Minority Science Improvement Program.

Repeals a requirement that the Secretary submit to the Congress an annual list of grantees. Directs the Secretary in cooperation with the heads of other Federal departments and agencies that operate programs similar to the Minority Science Improvement Program, to report to the President before 1995, summarizing and evaluating those programs.

Repeals provisions for Science and Engineering Access Programs.

Requires grant recipients, in order to remain eligible to receive funds, to demonstrate to the Secretary that they are making reasonable progress toward achieving the project goals.

Repeals specified provisions: (1) relating to procedures for grant and contract review; and (2) for the Advisory Board for the Minority Science and Engineering Improvement Programs.

Extends the authorization of appropriations for the Minority Science Improvement Program. (Eliminates provisions allocating funds and providing an additional appropriation for new activities specifically aimed at increasing the participation of minority students in scientific and engineering research careers.)

Revises and renames the Innovative Projects for Community Services and Student Financial Independence programs the Innovative Projects for Community Services, whose purpose shall be to support innovative projects to encourage student participation in community service projects, including literacy projects. Provides that the Secretary (rather than the FIPSE Board Director) shall establish the procedures under which the FIPSE Board approves Innovative Projects grant and contract applications.

Extends the authorization of appropriations for Innovative Projects for Community Services (and increases the amount of such funding to reflect the incorporation of certain functions of the Student Literacy Corps eliminated by this Act).

Title X: Partnerships for Economic Development and Urban Community Service - Repeals the Partnerships for Economic Development and Community Service program.

Title XI: General Provisions - Revises the definition of institution of higher education. Requires such institutions, in order to be eligible to participate in HEA programs, to comply with such minimum State licensing standards as the Secretary may prescribe by regulation and which the relevant State licensing body is to impose upon institutions it licenses.

Revises the alternative accreditation process. Authorizes the Secretary, if a particular category of institutions is not accredited because no nationally recognized accrediting agency or association is qualified to do so, to appoint an advisory committee to: (1) recommend standards to qualify institutions in such category to participate in HEA programs; and (2) review whether particular institutions meet such standards.

Requires an institution, if it is accredited by more than one accrediting body, to designate, for HEA eligibility purposes, one such body as it primary accreditor, on either an institutionwide or program basis. Deems such an institution no longer accredited for purposes of HEA eligibility for a 24-month period if its accreditation is terminated for cause by the primary accreditor, or if it withdraws from such accreditation voluntarily under a show cause or suspension order, unless such accreditation is restored by the same accreditor during such 24-month period.

Revises provisions relating to treatment of territories and territorial student assistance. Changes from mandatory to discretionary the Secretary's authority to waive the eligibility criteria of any postsecondary education program administered by the Department of Education where such criteria does not take into account the unique circumstances of specified U.S. territories. Eliminates provisions for: (1) promulgation of certain regulations; and (2) an authorization of appropriations for supporting the cost of providing postsecondary education programs on Guam for nonresident students from specified U.S. territories.

Extends the authorization for the continued existence of the National Advisory Committee on Accreditation and Institutional Eligibility.

Revises provisions for peer review of applications to authorize the Secretary to use up to one-half of one percent of appropriations, for discretionay grants, contracts, or cooperative agreements to provide for the panels of readers required to review the applications for such grants, contracts, and agreements.

Provides for sharing of institutional eligibility information by the Secretary, guaranty agencies, accrediting agencies, and State licensing bodies.

Makes ineligible for any HEA assistance any individual who is in default on any loan made, insured, or guaranteed by the Federal Government, unless satisfactory repayment arrangements are made.

Repeals provisions for: (1) a Joint Study Commission on Postsecondary Institutional Recognition; and (2) regional technology transfer centers.

Title XII: Effective Dates - Sets forth effective dates for various provisions of this Act.