To amend title X of the Higher Education Act of 1965.

Amends title X (Postsecondary Improvement Programs) of the Higher Education Act of 1965 (HEA) to authorize the Secretary of Education (the Secretary) to make planning grants to institutions of higher education for the development and testing of innovative techniques in postsecondary education. Authorizes appropriations for FY 1993 through 1997 for such planning grants.

Extends through FY 1997 the authorization of appropriations for HEA title X part A, Fund for the Improvement of Postsecondary Education (the Fund) (to which such planning grant provisions are added).

Redesignates the current part C of title X of HEA, Innovative Projects for Community Services and Student Financial Assistance, as part E of title XI (Partnerships for Economic Development and Urban Community Service) of HEA.

Establishes a new part C of title X of HEA, Special Projects in Areas of National Need. Authorizes the Secretary to make grants to institutions of higher education, consortia thereof, and other public agencies and nonprofit institutions for innovative projects concerning one or more areas of particular national need in postsecondary education identified by the Secretary and the Director of the Fund. Sets forth application requirements. Requires areas of national need to initially include, but not be limited to: (1) international exchanges; (2) campus climate and culture; and (3) evaluation and dissemination. Authorizes appropriations for FY 1993 and 1997 for such grants.