Education Amendments of 1980

(Conference report filed in House, H. Rept. 96-1337)

Education Amendments of 1980 - =Title I: Establishment of a New Title I of the Higher Education Act of 1965= - Amends the Higher Education Act of 1965 to establish a new title I: "Continuing Postsecondary Education Program and Planning."

Establishes a Commission on National Development in Postsecondary Education to review the effectiveness of policies to promote specified Federal responsibilities in the area of postsecondary education (including use of Federal student assistance to recruit and retain members of the Armed Forces) and to submit a final report to the President and the Congress by December 31, 1983. Terminates the Commission 60 days after submission of the final report. Authorizes appropriations for the period from October 1, 1981, through March 1, 1984, to carry out Commission activities.

Directs the Commission to conduct a study of the remaining barriers to adult postsecondary education, analyzing characteristics of current or potential adult postsecondary students (individuals 22 years of age or older) and the Federal response, as well as the ability of educational institutions to respond, to the needs of the growing postsecondary student population. Directs the Commission to include specified considerations in such analysis and to coordinate such study with research and demonstration priorities of the National Institute of Education and with other studies on student financial assistance authorized under such Act.

Directs the Secretary of Education to make State allotments of funds for State planning and continuing education programs, according to specified formulas. Requires States to use portions of such funds for comprehensive statewide planning, information services, and continuing education. Includes among such continuing education programs those which promote or deliver postsecondary education services to women at the place of their employment or in conjunction with their employment.

Authorizes the Secretary to make discretionary grants to and contracts with public and private entities from a specified portion of funds for such Education Outreach Programs.

Directs the Secretary to appoint a National Advisory Council on Continuing Education to examine all federally supported continuing education and training programs, to make recommendations to eliminate duplication and effectuate coordination of such programs, and to report annually to the President and the Congress.

Authorizes appropriations for fiscal years 1981 through 1985 to carry out State planning and continuing education programs. Requires that the non-Federal share cover at least one-third of the cost of such programs.

Repeals specified Education Information programs of grants to States to pay the Federal share of the cost of planning, establishing, and operating Education Information Centers.

=Title II: Amendment and Extension of the Higher Education Act of 1965= - Redesignates title II as "College and Research Library Assistance and Library Training and Research."

Extends through fiscal year 1985 the authorizations of appropriations for the existing programs of grants for college library resources, library training and research, and strengthening research library resources.

Directs the Secretary (formerly the Commissioner of Education) to make resource development grants to institutions of higher learning and to other public and private nonprofit library institutions whose primary function is to provide library and information services to institutions of higher education on a formal, cooperative basis. Limits the amount of such grants to $10,000 each. Includes the establishment and maintenance of networks for sharing library resources with other higher education institutions among the permissible uses of such grant funds.

Directs the Secretary to make grants to, and contracts with, institutions of higher education and library organizations or agencies to assist them in training persons in librarianship. Requires that at least 50 percent of such grants be for establishing and maintaining fellowships and traineeships.

Authorizes the Secretary to make grants to, and contracts with, institutions of higher education and other public or private agencies, institutions, and organizations for research and demonstration projects related to library improvement, librarianship training, information technology, and dissemination of project information.

Authorizes the Secretary to make special purpose grants to: (1) institutions of higher education to meet special national or regional needs in library or information sciences; (2) combinations of such institutions for joint-use library facilities, resources, or equipment; (3) other public and private nonprofit library institutions providing formal, cooperative library and information services to higher education institutions to improve such services; and (4) institutions of higher education for community service programs or projects. Requires recipients of such grants to expend specified matching sums.

Directs the Secretary to make grants to institutions with major resource libraries. Bars recipients of such grants from receiving other specified grants in the same fiscal year.

Establishes a new program to assess the feasibility and advisability of, and, if feasible and advisable, prepare a design for, a national periodical system to preserve and provide access to a comprehensive collection of periodical literature for public and private libraries throughout the United States. Establishes a nonprofit National Periodical System Corporation. Sets forth provisions for: (1) the functions of the Corporation (including guidelines for the design of such system); (2) a Board of Directors; (3) a Director and staff of the Corporation; (4) its nonprofit nature; (5) its authority; and (6) approval by Congress of such design before implementation. Specifies that such system shall have no effect on U.S. copyright law. Authorizes appropriations for such new program for fiscal years 1980 through 1985 and for additional sums to implement an approved design for any fiscal year through 1985.

Exempts the National Periodical System Corporation from taxation by the United States, or any territory or possession thereof, or by any State, county, municipality, or local taxing authority. Provides that property accepted by such Corporation under title II of the Higher Education Act of 1965 shall be a gift, bequest, or devise to the United States for Federal tax purposes.

=Title III: Establishment of a New Title III of the Higher Education Act of 1965= - Establishes a new title III: "Institutional Aid."

Directs the Secretary of Education to carry out: (1) a "strengthening institutions" program to improve the academic quality, institutional management, and fiscal stability of eligible institutions; and (2) a program of short-term Federal assistance to strengthen the planning, management, and fiscal capabilities of institutions with special needs. Sets forth criteria for determining eligibility for such programs, including : (1) relatively high percentages of enrolled students receiving relatively large basic educational opportunity grants; and (2) relatively low educational and general expenditures per full-time equivalent undergraduate student.

Authorizes the Secretary to waive certain requirements for eligible institutions: (1) in order to increase higher education opportunities for American Indians, Spanish-speaking people, low-income individuals, or individuals in rural areas unserved by other postsecondary educational institutions; or (2) if an institution has traditionally served a substantial number of black students. Sets forth provisions, with regard to such program, for: (1) the purpose and duration of a grant; (2) cooperative arrangements; (3) applications for assistance; (4) Federal share; (5) limitations; and (6) challenge grants. Provides for a waiver of specified requirements for such challenge grants in the case of any institution with special needs that makes a substantial contribution to medical education opportunities for minorities and the economically disadvantaged.

Authorizes appropriations for carrying out title III institutional aid programs for fiscal years 1982 through 1985. Requires that 50 percent of sums appropriated in each fiscal year shall be available for aid to institutions with special needs and 50 percent for the strengthening institutions programs. Directs the Secretary to reserve a specified portion of funds for challenge grants to institutions with special needs. Directs the Secretary to assure that in each fiscal year the amount available under such program for institutions with special needs that historically serve substantial numbers of black students will not be less than 50 percent of the amount received by such institutions for fiscal year 1979.

=Title IV: Student Assistance= - Amends title IV (Student Assistance) of such Act to redefine student eligibility for grants, loans, and work assistance under such title to include: (1) enrollment at an eligible institution; (2) carrying at least one-half the normal full-time workload; (3) maintaining satisfactory progress in the course of study, according to the institution's standards and practice; (4) not owing a refund on previous grants or being in default on a student loan; and (5) filing a statement that such funds will be used solely for educational purposes. Requires a demonstration of financial need, as determined by a need analysis, for specified forms of financial assistance under such title, including basic educational opportunity grants and supplemental educational opportunity grants.

Extends the basic educational opportunity grants program through fiscal year 1985.

Declares that such basic grants shall be known as "Pell Grants".

Sets the maximum amount of such grants for academic years 1981-1982 through 1985-1986. Establishes a schedule of reductions, in case of insufficient funds, providing for uniformly increasing percentage reduction as the entitlement decreases (based on the "student's eligibility index," an index of student need for family contribution purposes).

Sets forth funding levels to be provided for the supplemental education opportunity grants program, the college work study program, and the national direct student loan program before increases in funding should be provided for the basic educational opportunity grant program.

Eliminates provisions for: (1) payments to institutions of higher education to cover information and administrative costs of the basic grant program; and (2) agreements with States for multiple State processing of student aid.

Extends the supplemental educational opportunity grants program through fiscal year 1985.

Requires that sums appropriated for such program be available for payments to institutions until the end of the second fiscal year succeeding the fiscal year for which they were appropriated.

Raises the limit on the amount of each such grant to $2,000 per academic year. Allows the $200 minimum payment requirement to be reduced proportionately for students enrolled for less than a full academic year.

Eliminates the requirement relating to the prescription of criteria and schedules for the guidance of institutions in determining student need for supplemental educational opportunity grants.

Limits the period during which a student may receive supplemental grants to the period required for the completion of the first undergraduate baccalaureate course of study being pursued by that student at the institution which the student attends. Requires that students meet specified eligibility and application requirements for such grants.

Sets forth institutional eligibility requirements for such programs, including a program participation agreement with the Secretary (formerly with the Commissioner), continued spending of funds from other sources in its scholarship and student aid program, proper and efficient administration of funds, reports to the Secretary, and dissemination of financial aid information to students.

Sets forth student eligibility requirements for such supplemental grants, including attendance at an eligible institution, not owing a refund on previous grants or being in default on a student loan, filing a statement that such funds will be used for educational purposes, and demonstrating financial need, in accordance with specified criteria which include expected family contribution as prescribed by the Secretary.

Requires institutions to select individuals, from those eligible for such supplemental grants, to award such grants and to determine the amounts to be paid them, according to specified criteria. Prohibits an eligible institution from using more than ten percent of its allocation for less-than-half-time undergraduate students eligible for such grants. Sets forth a formula for allocations to eligible institutions by the Secretary from grant funds apportioned to States. Permits each institution to use such allocations for initial and continuing supplemental grants in a manner which it determines will best achieve the purposes of the supplemental grant program.

Extends the program of grants to States for State student incentives through fiscal year 1985.

Sets forth a formula for the allotment of such grant funds to States.

Raises the limit on the amount of such incentive grants to $2,000 per academic year.

Waives the requirement that all nonprofit institutions of higher education in a State be eligible to participate in the State incentive grant program, in the case of any State in which such participation violates a statute enacted prior to October 1, 1978. Requires that State incentive grant programs: (1) permit eligible institutions, with the express approval of a State agency, to use any portion of payments for grants to less-than-half-time students; and (2) maintain specified levels of State expenditures under such programs.

Repeals provisions for bonus allotments for State student incentive grant programs.

Extends special programs for students from disadvantaged backgrounds through fiscal year 1985.

Authorizes the Secretary to make grants and contracts for such special programs without regard to specified advertising requirements for Federal contracts.

Directs the Secretary, in making grants and contracts for such special programs, to consider the prior experience of service delivery under the particular program for which funds are sought by each applicant.

Includes the training of persons serving or preparing for service in such special programs among the purposes for which such grants and contracts may be designed.

Sets forth eligibility requirements for such special programs, including Talent Search, Upward Bound, Special Services for Disadvantaged Students, and Educational Opportunity Centers. Requires that specified percentages of those participating in such programs be low-income individuals and/or first-generation college students. Authorizes the Secretary to make grants to provide training for staff and leadership personnel in such programs.

Eliminates the title IV program of Education Information.

Establishes a new program entitled "Special Programs for Students Whose Families are Engaged in Migrant and Seasonal Farmwork". Directs the Secretary to maintain and expand existing secondary and postsecondary high school equivalency program and college assistance migrant program projects designed to provide services for students of families engaged in migrant and seasonal farmwork. Authorizes appropriations for such program for fiscal years 1981 through 1985.

Extends the program of Veterans' Cost-of-Instruction Payments to Institutions of Higher Education through fiscal year 1985 for some institutions and through any academic year ending before the end of fiscal year 1986 for other institutions.

Requires institutions applying for such payments to set forth plans to insure an adequate effort to carry out programs coordinated with those of a specified veterans' readjustment counseling program and with the veterans' employment and training initiatives authorized under the Comprehensive Employment and Training Act and other specified legislation. Eliminates the less-than-2,500-students-in-attendance size requirement for institutions which may, upon determination of necessity by the Secretary, carry out such veterans' programs through a consortium agreement with other institutions.

Lowers to $75,000 (formerly $135,000) the maximum amount of such veterans' program payments to any one school and its branches in any fiscal year.

Raises the percentage (from 75 to 90) of such amount received which must be spent to maintain a full-time office of veterans' affairs at the institution. Requires that such program be administered by an identifiable administrative unit in the Department of Education.

Extends the Federal student loan insurance program through fiscal year 1986 for new student loans and through fiscal year 1990 for loans to enable students with prior insured loans to continue or complete their education.

Sets a $3,000 limit on the total of loans made to an independent undergraduate student in any academic year which may be covered by Federal loan insurance. Raises the limitations on aggregate unpaid principal amounts for all such insured loans to $12,500 (from $7,500) for non-independent undergraduate students, to $15,000 for independent undergraduate students, and to $25,000 (from $15,000) for graduate or professional students. Makes similar changes in limitations on State and non-profit institution loan insurance programs which receive Federal payments to reduce student interest costs or which are reimbursed under Federal loan insurance supplemental guaranty agreements. Authorizes the Commissioner to increase the limits applicable to graduate and professional students pursuing exceptionally expensive programs.

Includes among those permitted to defer repayment of principal on federally-insured student loans: officers in the Commissioned Corps of the Public Health Service, full-time volunteers with specified tax-exempt organizations, interns, and those temporarily totally disabled or unable to secure employment because of the care required by a temporarily disabled spouse. Permits similar deferments under specified student loan programs insured by States or nonprofit institutions.

Authorizes each State agency and nonprofit private institution or organization with which the Secretary has a specified agreement, or an eligible lender in such State, to make loans directly to students otherwise unable to obtain federally guaranteed and insured loans from sums advanced by the Student Loan Marketing Association. Permits such guarantors to receive advances from the Association for each fiscal year to meet the demand for such loans. Limits the amount of such payments to 25 percent of the average of the loans guaranteed by a guarantor for three years preceding the fiscal year for which the determination is made (or, if such guarantor does not have three years previous experience, 25 percent of the loans guaranteed under a program of a State of comparable size). Requires that such loans have the same terms, conditions, and benefits as all other guaranteed and insured student loans.

Raises from seven percent to nine percent for new borrowers (as of October 1, 1980) the maximum rate of interest per year on the unpaid principal balance of a loan which the Secretary may prescribe and define for federally insured student loans, except that such rate will decrease to eight percent if the annualized rate of 91-day Treasury bills is nine percent or less.

Reduces to six months (formerly, nine-to-12 months) the period after a student ceases to carry at least one-half the normal full-time academic workload and during which: (1) the student may specifically request loan repayment over less than a five-year period; and (2) the student may not be required to begin repayment. Makes similar changes in maximum interest rates and repayment periods for loans under the program of Federal payments to reduce student interest cost.

Directs the Secretary to enter into cooperative agreements with credit bureau organizations to provide for the exchange of information concerning student borrowers. Requires that such agreements provide that: (1) the Secretary disclose only accurate and complete information and not disclose that a loan is in default until a reasonable effort has been made to collect the debt; (2) such organizations will be promptly notified, and will promptly record changes submitted by the Secretary or objections by the borrower with respect to such information; (3) no unfair, unreasonable, harassing, or misleading collection practices will result; and (4) the Secretary will notify the borrower (except in the case of disclosures made to obtain the borrower's location) that such information will only be disclosed after at least 30 days from the date such notice was sent during which period such borrower has failed to enter into repayment.

Directs the Secretary to establish: (1) such disclosure of information as a routine use; and (2) a system for the prompt notification of any borrower of any such disclosure. Declares that such information disclosed by the Secretary to credit bureau organizations shall not constitute a system of records under the Privacy Act of 1974, and that credit bureau organizations entering into such agreements with the Secretary shall not be considered Government contractors within the meaning of such Act. Requires that written agreements evidencing federally-insured student loans contain notice of such system of disclosure and provide that the lender, on request of the borrower, will inform such credit bureaus of the repayment status of the note.

Authorizes the Secretary to provide eligible lenders, and State or nonprofit corporations having specified guaranty agreements, with any relevant information with respect to borrowers.

Provides, for purposes of State or nonprofit private institutional student loan insurance program agreements with the Secretary for Federal payments to reduce interest costs, that the proceeds of insurance premiums in such program may not be used for incentive payments to lenders.

Includes the administrative costs of monitoring the enrollment and repayment status of students among those items: (1) which such State or nonprofit entities may deduct before determining the Secretary's equitable share of payments made by the borrower; and (2) for which the Secretary is authorized to make payments to such entities.

Repeals provisions in existing law requiring specific percentages of administrative costs allowances to be expended for specified purposes.

Redefines the administrative costs of promotion of commercial lender participation, for purposes of provisions relating to such agreements, to include the costs of providing interest and special allowance computation and billing services to lenders and the amount of non-Federal funds expended by an insurer as incentive payments to lenders to induce them to improve or expand their program participation. Permits State agencies or nonprofit private entities, with such agreements with the Secretary, to enter into agreements with eligible lenders (other than an eligible institution or an agency or instrumentality of the State) to authorize multiple disbursements of the proceeds of a loan under which the lender will pay the proceeds of such loans into an escrow account to be administered by the State or nonprofit private entity according to specified provisions.

Requires eligible lenders to enter into agreements with the Secretary under which they will provide thorough and accurate loan information on guaranteed or insured loans to the student borrower.

Permits parents of a dependent undergraduate student to borrow, under the same terms as other guaranteed student loans, up to $3,000 per student per academic year. Limits to $15,000 the aggregate insured principal for loans made to parents on behalf of an undergraduate student. Provides for annual insurable limits for such loans. Requires that repayment of principal on such loans commence within 60 days after disbursement by a lender.

Sets the interest rate on loans to parents at nine percent per year. Decreases such rate to eight percent if the annualized rate of 91-day Treasury bills is nine percent or less. Directs the Secretary to insure such loans in a State only if the State will not do so within a specified period.

Revises the formulas for computing the amount of special allowances and the amount of daily interest on such allowances. Provides that such revised special allowance shall: (1) apply only to loans made or purchased from the proceeds of tax-exempt bonds issued after October 1, 1980; and (2) not be less than two and one-half percent in the case of loans with a seven percent interest rate, or one and one-half percent in the case of loans with an eight percent interest rate, or one-half percent in the case of loans with a nine percent interest rate.

Eliminates provisions for a Committee on the Process of Determining Student Loan Special Allowances.

Prohibits the payment of any such special allowance unless the authority issuing such obligations submits for the approval of the Secretary a plan of doing business. Requires that such plan assure that: (1) no eligible lender in the area served by the authority will be excluded from participation, under the same terms and conditions for all, in such program; (2) no director or staff member of the authority may own stock in, or receive compensation from, any agency that would contract to service and collect the loans of the authority; (3) student loans will not be purchased from participating lenders at a rate of more than one percent of the unpaid principal amount borrowed plus accrued interest to the date of acquisition; (4) the authority will, within the limit of funds available and subject to applicable State and Federal law, make loans to, or purchase loans incurred by, all eligible students attending an eligible institution or residing within the area served; (5) the authority has a plan to pursue the development of new lender participation in a continuing program of benefits to students, together with assurances of existing lender commitments to the program; and (6) there will be an annual audit of the authority by a certified public accounting firm, including review of compliance with the plans. Directs the Secretary to approve or disapprove such plans within 30 days of submission.

Revises provisions establishing the Student Loan Marketing Association so that Association is no longer "Government-sponsored". Permits the Association's Board of Directors to fix the par value of its common stock from time to time. Terminates the requirement that the Secretary prescribe regulations for the maximum number of shares of such stock which may be issued or be outstanding at any one time. Permits dividends to be declared on nonvoting common stock, as well as on common stock. Authorizes the Association to issue nonvoting common stock, which shall be freely transferable, and nonvoting preferred stock.

Sets forth requirements for the types of security which must be made on warehousing advances made by the Association, and for the use of proceeds from such advances. Requires that student loans set aside pursuant to the offering of participations or pooled interests be adequate at all times to ensure timely principal and interest payments of such securities.

Includes lenders with less than $75,000,000 (formerly $50,000,000) in deposits among those permitted to condition student loans upon the student or the student's family maintaining a business relationship with the lender.

Declares that nothing in the provisions requiring the approval of the Secretary of Education and the Secretary of the Treasury for the issuance and maintenance of outstanding obligations by the Association shall be construed so as to authorize such Secretaries to limit, control, or constrain programs of the Association or support of the Guaranteed Student Loan Program by the Association. Prohibits the Secretary of the Treasury from conditioning approval of such issuance on such obligations being made or sold to the Federal Financing Bank. Extends from prior to July 1, 1982, to prior to October 1, 1984, the authority of the Secretary of Education to guarantee payment on such obligations. Authorizes the Secretary of the Treasury to purchase such obligations, within specified limits. Authorizes the Association to sell or issue obligations on the security of guaranteed student loans, to the Federal Financing Bank.

Authorizes the Association or its designated agent to make new insurable loans to specified borrowers to discharge the liability on old student loans. Provides for such student loan consolidation by State and nonprofit private entities having agreements with the Secretary and by eligible lenders or their designated agents, upon the request of a borrower whose aggregate outstanding indebtedness exceeds $5,000 from two or more programs or lenders under title IV of such Act, or exceeds $7,500 from a single lender under the guaranteed and insured loans programs. Provides that such consolidation will be at interest rate applicable to the Guaranteed Student Loan program at the time of consolidation.

Directs the Association to make payments to State and nonprofit entities and eligible lenders submitting applications setting forth that such payments are necessary to enable such groups to make student loans to otherwise ineligible students provided for under this Act. Authorizes the Association to make insurable student loans whenever the Secretary, after consulting with representatives of a State, determines that a substantial portion of all eligible borrowers in a State or within an area of substantial population in a State are unable to obtain student loans.

Directs the Secretary to make determinations regarding the due diligence by an insurance beneficiary in the collection of a student loan within 90 days after notification of default, and to make payment in full on the amount of the beneficiary's loss pending completion of the due diligence investigation.

Permits administrative cost payments for parent loans, as well as for student loans.

Directs the Secretary to make payments to specified agencies, institutions, or organizations in a State which provide a lender referral service for students unable to find willing lenders for specified student loans. Sets the amount of such payment at one-half of one percent of the total principal amount of the loans obtained through such service. Permits agencies receiving such payments to use all or part of such sums for the payment of incentive fees to lenders who agree to participate in such service. Authorizes appropriations for such purpose.

Deletes from the statement of purpose for the Work-Study Program special emphasis on students who are in great financial need.

Extends the authorization of appropriations for work-study programs through fiscal year 1985.

Directs the Commissioner to allot not to exceed one percent of such appropriations among Guam, American Samoa, The Trust Territory of the Pacific Islands, and the Virgin Islands, according to their respective needs for work-study programs. Includes Puerto Rico among "States" for purposes of allotments of work-study funds. Requires that specified reallotments of funds be available for grants for work-study programs until the close of the second fiscal year next succeeding the fiscal year for which such funds were appropriated.

Directs the Secretary to give preference for the first 50 percent of reallotments of unused college work-study program funds to eligible institutions for use for initiating, improving, and expanding programs of cooperative education conducted in accordance with title VIII of such Act, and according to the ratio of the number of students assisted under such cooperative education programs at a given institution to the total number of such assisted students for the fiscal year.

Authorizes the Secretary (formerly the Commissioner) to enter into agreements with eligible institutions under which the Secretary will make grants to such institutions to assist in the operation of work-study programs. Revises conditions for such agreements to require: (1) that such work will not pay less than the current Federal minimum wage; and (2) that only students who demonstrate financial need and who meet specified eligibility requirements will be assisted. Repeals additional requirements for such agreements with area vocational schools.

Provides that each eligible institution may reserve and award not more than ten percent of the funds made available under such work-study programs for each fiscal year for students enrolled on less than a half-time basis.

Requires that agreements for work-study programs provide assurances that employment made available from funds under such programs will, to the maximum extent practicable, complement and reinforce the educational program or vocational goals of each student receiving such assistance.

Prohibits criteria established for distribution of work-study assistance within a State from resulting in any institution's receiving an amount less than the institution used for fiscal year 1979 unless there is a substantial decline in the student enrollment of such institution.

Requires that ten percent of work-study sums granted to an eligible institution remain available for expenditure during the succeeding fiscal year. Authorizes the Commissioner to use up to ten percent of the sums which an eligible institution may receive from appropriations for a fiscal year to make grants to such institution during the preceding fiscal year.

Raises the limitation on the amount of such work-study funds which eligible institutions may use to establish or expand job location and development programs from $15,000 to $25,000, if such amount is less than ten percent of the allotment.

Establishes a new program of work-study for community service-learning on behalf of low-income individuals and families. Authorizes each institution participating in work-study programs to use funds payable from the work-study allotment, in accordance with regulations of the Secretary and in an amount equal to ten percent of the institution's expenditures under the community service-learning program, to cover administrative expenses for such program.

Extends the authorization for appropriations for the National Direct Student Loans program through fiscal year 1985.

Provides for an alternative source of funds for student direct loans through borrowing by the Secretary to meet the student loan capital needs of institutions of higher education through a procedure by which existing campus revolving funds revert to the Federal Government.

Raises the limit on the aggregate of loans for all years made by an institution of higher education from National Direct Student Loan funds from $10,000 to $12,000 for graduate or professional students, from $5,000 to $6,000 for undergraduates who have completed two years towards the bachelor's degree, and from $2,500 to $3,000 for any other students.

Adds to the categories of those permitted to defer, for specified periods, repayment of principal of, or interest on, direct student loans: (1) officers in the Commissioned Corps of the Public Health Service; (2) full-time volunteers with specified tax-exempt organizations; (3) interns; and (4) those temporarily totally disabled or unable to secure employment because of the care required by a temporarily disabled spouse. Reduces from nine months to six months the normal National Direct Student Loan grace period before repayment must begin.

Provides for a grace period of six months after the completion of specified periods of study, service, or disability, or combinations thereof, before repayment of principal or interest on a national direct student loan must begin.

Allows the direct student loans repayment period to be extended up to an additional ten years (beyond the normal ten year six-month maximum) for a student borrower who during the repayment period is a low-income individual, pursuant to uniform criteria established by the Association.

Requires that agreements with institutions for Federal contributions to National Direct Student Loan funds provide that the Secretary will provide to such institutions any relevant information on borrowers. Directs the Secretary to enter into cooperative agreements with credit bureau organizations to exchange information concerning student borrowers in default for specified periods. Requires that student loan agreements contain notice of such system of information disclosure. Directs the Secretary to continue to attempt to collect any defaulted student loan for at least four years after the date of default.

Raises the interest rate on direct student loans from three percent to four percent in the case of any loan made on or after October 1, 1980.

Sets forth student loan information which institutions of higher education must provide to student borrowers.

Conforms the definition of "handicapped children" used for determining teacher eligibility for loan cancellation to such definition as contained in the Education of the Handicapped Act.

Provides that the amount of a national direct student loan, and interest on such loan, which has been cancelled for certain public service shall be considered taxable income.

Redefines "institution of higher education" for purposes of title IV Student Assistance programs (excluding the veterans' cost-of- instruction payments and the guaranteed student loans programs) to include all the institutions described in the definition of such term for purposes of the entire Act, as well as proprietary institutions of higher education, postsecondary vocational institutions, schools of nursing of different levels, and any accredited institution which fails to meet specified requirements of such Act because it is not located in a State.

Establishes a need analysis method for determining a student's financial need under all title IV programs, excluding State student incentive grants and guaranteed student loans.

Directs the Secretary to: (1) publish annually in the Federal Register a proposed schedule of expected family contributions for an academic year for various levels of family income to determine a student's need for financial assistance; and (2) provide interested parties an opportunity for comments and recommendations during a 30-day period following such publication. Requires such schedule to be submitted to Congress and, if either house of Congress adopts a resolution of disapproval, directs the Secretary to publish a new schedule.

Directs the Secretary to: (1) develop such schedules in cooperation with representatives and organizations involved in student financial assistance; and (2) promulgate regulations for determining expected family contributions according to specified basic criteria.

Sets forth a formula for determining effective family income.

Limits to 14 percent the assessment rate on parental discretionary income for families with adjusted gross incomes which do not exceed $25,000. Authorizes the Secretary to set assessment rates for families with income above such level.

Directs the Secretary to promulgate special regulations for determining the expected family contribution and effective family income of an independent student, consistent with specified basic criteria.

Sets forth criteria for determining "cost of attendance." Provides for a minimum room and board allowance of $1,100 for a student without dependents residing at home with parents.

Directs the Secretary to prescribe, in cooperation with student financial assistance groups, a common Federal financial aid application form to be used to determine the need and eligibility of a student for financial assistance under title IV programs (excluding State student incentive grants and guaranteed student loans). Prohibits charging a student or parent a fee for processing the data elements of the form prescribed by the Secretary. Directs the Secretary, to the extent practicable, to enter into contracts with not less than three States, institutions of higher education, and private organizations to process such applications and issue eligibility reports. Authorizes the Secretary to contract for: (1) additional services to assure coordination of Federal and non-Federal aid and to provide information, training, and similar services to institutions, aid officers, counselors, lenders, parents, and students; and (2) development, distribution, and processing of a common pre-eligibility aid form to help students anticipate the amount of aid for which they might be eligible.

Sets forth student eligibility standards for any grant, loan, or work assistance under title IV, including: (1) not owing a refund on previous grants and not being in default on specified student loans; and (2) filing a statement that such funds will be used solely for educational purposes.

Requires institutions participating in title IV programs to disseminate institutional and financial assistance information for prospective and enrolled students. Adds to the required categories information concerning: (1) special facilities and services for handicapped students; (2) any organization accrediting, approving, or licensing the institution and its programs; and (3) the institution's standards for satisfactory academic progress. Directs the Secretary to make available to eligible institutions descriptions of Federal student assistance programs.

Authorizes the Secretary to contract for the training of financial aid administrators, student peer counselors, student staff or volunteers, and other part-time staff and volunteers who provide financial aid, admissions and academic counseling and outreach, and student support programs. Specifies uses of such financial assistance.

Authorizes the appropriation of $1,000,000 for each of fiscal years 1981 through 1985 for such purpose.

Sets forth the terms and conditions of program participation agreements for all title IV programs (excluding State student incentive grants). Authorizes the Secretary to prescribe regulations providing for: (1) fiscal audits of eligible institutions; (2) reasonable standards of institutional financial responsibility; (3) policies and procedures at guaranteed student loan program institutions to notify the holder (or if holder is unknown, the insurer) of the note, within 60 days, of the latest known address and enrollment status of a student who formally terminated enrollment or failed to re-enroll on at least a half-time basis; and (4) the limitation, suspension, or termination of eligibility of any institution upon determination, after reasonable notice and opportunity for hearing, of any violation or failure to carry out any title IV provision. Makes misrepresentation of an institution's programs, financial charges, or the employability of its graduates grounds for suspension or termination of eligibility. Provides for the imposition of civil penalties in certain cases.

Continues the authorization of transfer of up to ten percent of an institution's supplemental grant or work-study allotment between such programs.

Sets forth formulas for the allotment and use of funds to meet administrative expenses under title IV programs.

Provides for criminal penalties for violations under title IV.

Establishes, as an independent agency within the executive branch, a National Commission on Student Financial Assistance. Directs the Commission to make a report and recommendation to the President and the Congress on specified issues relating to the financing of student loans. Directs the Commission to conduct, among other required reports, a comprehensive study of the effect of federally authorized student assistance programs upon postsecondary education access and choices of high school students.

Authorizes the Commission to accept grants, gifts, or bequests. Authorizes appropriations to carry out the work of the Commission.

=Title V: Amendment and Extension of Title V of the Higher Education Act of 1965= - Extends authorizations of appropriations for the Teacher Corps Program and for Teacher Training Programs through fiscal year 1985.

Limits to two percent of the available Teacher Corps members the number of such members which shall be allocated to the Virgin Islands, Guam, American Samoa, and the Trust Territory of the Pacific Islands. Deletes Puerto Rico from such list and includes Puerto Rico among the "States" for purposes of Teacher Corps members allocation.

Removes the limit on the rate of compensation for teacher interns in the Teacher Corps program.

Authorizes the Secretary to make grants, under the Teacher Corps program, to schools, colleges and departments of education and local education agencies with high concentrations of low income students for developing curricula or materials or providing teacher training in the sciences and mathematics.

Eliminates the limitation (that a specified amount be appropriated in any fiscal year for Teacher Training programs) on the requirement that each State receive grants in any fiscal year sufficient to assure the establishment of one teacher center in the State.

Requires that bilingual education teachers be fairly represented on teacher center policy boards, where appropriate.

Authorizes the Secretary to make grants to schools of education for training educational personnel for specified purposes. Authorizes the Secretary to make such grants for model projects for fiscal years 1981 through 1985. Authorizes the Secretary to enter into agreements with consortia of schools of education for planning programs to diversify and redirect curricula. Directs the Secretary to develop criteria for determining the regions of the country in which consortia of schools of education are to be established. Limits such grants to any such consortium to $200,000 in a fiscal year. Requires that such cooperative agreements be first approved by the State education agency in the State in which the applicant is located.

Establishes a new program of training for elementary and secondary school teachers to teach handicapped children in areas with a shortage.

Authorizes the Secretary to make grants, on an equitable basis consistent with specified criteria, to State education agencies for a fellowship program of stipends and for higher education allowances for teachers to be trained to provide special education for handicapped children.

Limits the amount of an individual stipend to $9,000 in any one year. Authorizes appropriations through fiscal year 1985 to carry out such program.

Establishes an Office of Education Professional Development, within the Department of Education, to review and coordinate program activities among the various Federal education professional development programs within such Department. Directs the Secretary to report biennially to Congress on the findings and recommendations of such Office.

=Title VI: Establishment of a New Title VI of the Higher Education Act of 1965= - Establishes a new title VI of such Act: "International Education Programs." (Replaces the former title VI: "Financial Assistance for the Improvement of Undergraduate Instruction").

Authorizes the Secretary to make grants to, or enter into contracts with, institutions of higher education to establish foreign language centers and programs, focusing on the teaching of modern foreign languages and cultures. Authorizes grants for centers for specific issues in world affairs, for specified research projects, and for improvement of undergraduate foreign language instruction. Requires the Secretary to ensure an equitable national distribution of available program funds. Authorizes appropriations through fiscal year 1985 for such programs.

Authorizes the Secretary to make grants to, or enter into contracts with, institutions of higher education to develop international business education and training programs. Limits the Federal share to 50 percent of the cost of such programs. Authorizes appropriations through fiscal year 1985 for such programs.

Establishes a national advisory board to: (1) consider title VI grants and contracts, as well as those made under specified provisions of the Elementary and Secondary Education Act of 1965; (2) advise the Secretary on specified matters; and (3) review title VI international business education programs.

International Understanding Act - Amends the Elementary and Secondary Education Act of 1965 to establish a new International Understanding program. Authorizes the Secretary to enter into contracts with, or make grants to, public or private institutions to develop programs to increase the understanding of students and the public about the cultures, actions, and interconnections of nations and people in order to better evaluate the international and domestic impact of major national policies. Sets forth permissible and impermissible uses of such financial assistance. Authorizes appropriations through fiscal year 1985 to carry out such program.

Repeals the foreign students and language development program provisions of the National Defense Education Act of 1958 and the advanced and undergraduate international grant programs provisions of the International Education Act of 1966.

=Title VII: Amendment to Title VII of the Higher Education Act of 1965= - Amends title VII of such Act to direct the Secretary to assist institutions of higher education and higher education building agencies to construct, reconstruct, or renovate academic facilities and acquire special equipment for: (1) energy use economy, with a priority for the use of coal, solar, and renewable resources; (2) conformance with specified requirements relating to access for the handicapped, environmental protection, or health and safety; (3) research facilities, including libraries; (4) coping with unusual increases in enrollment; or (5) detecting, removing, or otherwise containing asbestos hazards in academic or other facilities used by students, in accordance with regulations prescribed by the Secretary.

Authorizes appropriations through fiscal year 1985 in specified amounts for title VII programs.

Raises to $100,000 the minimum amount allotted to any State for any fiscal year for grants to all institutions of postsecondary education other than public community colleges and public technical institutes. Requires that each State's allotment be ratably reduced if appropriations are not sufficient.

Retains the limit on the amount of an institutional grant at 50 percent of the cost of the project.

Discontinues the program of assistance for the construction of academic facilities and the replacement of equipment and supplies by public institutions of higher education in major disaster areas.

=Title VIII: Cooperative Education= - Increases the amount of appropriations authorized for fiscal years 1981 and 1982 for grants to institutions of higher education for programs of cooperative education and extends such authorization through fiscal year 1985.

Allows such programs to provide parallel, as well as alternate, periods of academic study and of public or private employment. Increases the amount of appropriations for specified training, demonstration, or research grants or contracts for fiscal years 1981 and 1982, and extends such authorization through fiscal year 1985. Raises the limits on the amounts of grants for cooperative education programs made to any one institution of higher education to $325,000 and to combinations of such institutions to $250,000 times the number of institutions in a consortium.

Changes the prohibition under which no institution of higher education may receive such grants for more than five years to one under which no individual unit of such an institution may receive such grants for more than such a period.

=Title IX: Graduate Programs= - Extends the authorization of appropriations for financial assistance to graduate and professional programs through fiscal year 1985. Changes one of the authorized activities for which such funds may be used from "expansion" to "maintenance and improvement of quality" of such programs.

Provides for a program of campus based grant awards to graduate and professional students in financial need, with a maximum individual award of $4,500 per year for three years. Maintains the level of awards for the public service, mining, and graduate and professional opportunity programs. Includes a consideration of the need to prepare a larger number of individuals from minority groups, especially from groups traditionally underrepresented in universities, among criteria for such awards.

Repeals the title IX sections entitled Public Service Fellowships, Fellowships for Other Purposes, Annual Fellowship Report, and General Assistance for Graduate Schools.

Establishes a new program: The National Graduate Fellows Program. Authorizes the Secretary to award up to 450 fellowships each fiscal year from 1981 through 1985 for graduate study in the arts, humanities, and social sciences by students of superior ability selected on the basis of demonstrated achievement and exceptional promise. Authorizes appropriations for such purpose.

Directs the President to appoint a National Graduate Fellows Program Fellowship Board to: (1) establish general policies for such program; (2) select the fields to be awarded fellowships; (3) determine the number of fellowships within a given field; (4) appoint distinguished panels to select fellows; (5) submit reports to Congress on appropriate modifications; and (6) consult with specified groups.

Retains the program of Assistance for Training in the Legal Profession (formerly included in Fellowships for Other Purposes). Authorizes the Secretary, through fiscal year 1985, to make grants to, or enter into contracts with, public and private agencies and organizations other than institutions of higher education for the purposes of assisting individuals from disadvantaged backgrounds to undertake training for the legal profession. Sets forth conditions for fellowships under such program. Authorizes appropriations through fiscal year 1985 for such purpose.

Redesignates the Law School Clinical Experience Programs, formerly under title XI, as part of title IX. Authorizes appropriations through fiscal year 1985 for such programs.

=Title X: Establishment of a New Title X of the Higher Education Act of 1965= - Establishes a new title X of such Act: "Fund for the Improvement of Postsecondary Education." (Replaces the former title "Establishment and Expansion of Community Colleges"). Repeals the Statewide Plans and the Establishment and Expansion of Community Colleges provisions of the former title X.

Includes the establishment and operation of the Fund for the Improvement of Postsecondary Education (formerly authorized under the General Education Provisions Act) under title X of the Higher Education Act of 1965. Authorizes appropriations for purposes of such title through fiscal year 1985.

Retains and redesignates the establishment of Agencies provisions of title X (relating to a Bureau of Occupational and Adult Education and a Community Unit.)

Repeals the provisions of the General Education Provisions Act relating to the Fund for the Improvement of Postsecondary Education.

=Title XI: Establishment of a New Title XI of the Higher Education Act of 1965= - Establishes a new title XI of such Act: the "Urban Grant University Program." (Replaces the former title XI, "Law School Clinical Experience Programs," which is redesignated as part of title IX of such Act).

Directs the Secretary to carry out programs to aid urban universities to help find answers to urban problems and make their resources more readily and effectively available to their urban communities.

Authorizes appropriations for such purposes through fiscal year 1985.

Authorizes the Secretary to make grants of 90 percent of project cost to urban universities for such urban- oriented projects. Requires that such grant applications show that the chief executives of the local governments, within whose jurisdictions fall the needs to be addressed by such proposed projects, have had an opportunity for review and comment. Sets forth guidelines for the Secretary in approving such projects, including evidence of local government and community participation in the development of such projects. Limits total institutional grants within any State to 15 percent of the national total.

=Title XII: General Provisions= - Repeals specified provisions relating to State Postsecondary Education Commissions, Comprehensive Statewide Planning, and the Advisory Council on Graduate Education, cost of education data, and funding requirements of title XII of the Higher Education Act of 1965.

Requires States to enter into agreements with the Secretary setting forth terms and conditions for the relationship between the Federal Government and each individual State for the purposes set forth in specified programs under this Act in order to receive assistance under such programs.

Authorizes appropriations of $2,000,000 for each fiscal year through fiscal year 1985 for postsecondary education programs on Guam for non-resident students from the Trust Territory of the Pacific Islands, the Northern Mariana Islands, and American Samoa, pending legislative implementation of recommendations to be submitted by the Secretary. Directs the Secretary to allocate such funds to educational institutions on the basis of the number of such students enrolled.

Reestablishes the National Advisory Committee on Accreditation and Institutional Eligibility in the Department of Education, through fiscal year 1985.

Makes technical and conforming amendments reflecting the establishment of the Department of Education.

=Title XIII: Miscellaneous Provisions= - Amends the General Education Provisions Act to increase the period of automatic extension of the authorization or duration of expiring programs from one year to two years for programs that are forward funded. Allows all other programs to be extended automatically for one year. Provides that appropriations for an extended program are for the extent of the fiscal year, not the calendar year.

Authorizes the Congress to reject, in whole or in part, final regulations submitted by the Department of Education.

Authorizes appropriations for fiscal year 1981 for the Pre-College Science Teacher Training program and for the Minority Institutions Science program (both transferred to the Secretary of Education from the National Science Foundation by the Department of Education Reorganization Act).

Continues the Commission on the Review of the Federal Impact Aid Program, established under the Education Amendments of 1978, until September 30, 1981, and extends the deadline for the Commission's report until September 1, 1981.

Requires that the detailed data and appendices for annual evaluation reports on Federal education activities include tabulations of available data to indicate the effectiveness of the programs and projects by the sex, race, and age of beneficiaries.

Requires a Federal agency to publish a copy of any proposed regulation affecting any institution of higher education in the United States in the Federal Register, together with an educational impact statement to determine whether any information required is already being gathered by, or is available from, any other Federal agency or authority.

Amends the General Education Provisions Act to extend the authorization of appropriations for the National Institute of Education in specified amounts for fiscal years 1981 through 1985. Amends such Act to revise the declaration of policy to include the provision of an equal opportunity in education to every person regardless of age or handicap. Includes as priorities for the National Institute of Education research and development programs: (1) overcoming the special problems of the non-traditional student, including the older and part-time student; (2) encouraging the study of languages and cultures and addressing both national and international education concerns; and (3) giving attention to the needs of early adolescents and the schools which serve them.

Repeals provisions relating to a Panel for the Review of Laboratory and Center Operations.

Makes conforming amendments to the Rehabilitation Act of 1973. Requires the Architectural and Transportation Barriers Compliance Board to transmit its report required under the Architectural Barriers Act of 1968 to specified committees of the Congress.

Directs the Secretary of Education to establish a central clearinghouse for information and resource availability for handicapped individuals.

Establishes an Advisory Council to evaluate and report on the needs of native Hawaiians and the effectiveness of existing State and federally assisted educational programs in meeting such needs. Authorizes appropriations for such purpose for fiscal years 1981 through 1983.

Makes eligible for impact aid payments any local education agency experiencing an enrollment increase in any school year of at least 20 students as the result of the entry into any of its schools of refugee children, including those who are paroled into the States, who are applicants for asylum or who have been granted asylum: (1) since November 1, 1979, if they are aliens who fled from Cuba or Haiti; and (2) since January 1, 1979, if they are aliens who fled from Cambodia, Vietnam, or Laos. Sets forth formulas for determining the amount of such aid. Authorizes appropriations for such purpose for fiscal year 1981.

Amends the Navajo Community College Act to extend the authorization of appropriations for construction by one year. Modifies the authorization of appropriations for grants to the College, for fiscal year 1979 and thereafter, to an amount equal to that necessary for the operation and maintenance of the College, including, but not limited to, administrative, academic, and operations and maintenance costs. Amends the Tribally Controlled Community College Assistance Act of 1978 to declare that eligibility for assistance under such Act shall not, by itself or except as specifically provided by law, preclude the eligibility of the Navajo Community College to receive Federal financial assistance under any applicable program for the benefit of institutions of higher education, community colleges, or postsecondary educational institutions.

Amends the Education Amendments of 1972 to require that the Community College of American Samoa and the College of Micronesia be considered land grant colleges with the same provisions for assistance as the College of the Virgin Islands and the University of Guam.

Robert A. Taft Institute Assistance Act - Authorizes the Secretary of Education to make grants to the Robert A. Taft Institute of Government, located in New York, New York. Limits the total amount of such grants in any fiscal year to the total amount of private contributions received by the Institute in such fiscal year. Authorizes appropriations in a specified amount to the Fund.

Directs the Secretary of Education to make a grant to establish the General Daniel James Memorial Health Education Center at Tuskegee Institute, Tuskegee, Alabama. Authorizes appropriations for fiscal year 1981, to be available until expended, for such purpose.

William Levi Dawson Chair of Public Affairs Act - Authorizes the Secretary of Education to provide financial assistance to establish the William Levi Dawson Chair of Public Affairs at Fisk University, Nashville, Tennessee. Authorizes appropriations for fiscal year 1981, to remain available until expended for such purpose.

Makes conforming amendments to the Higher Education Act of 1965 under which: (1) all references to the Commissioner of Education or to the Secretary of Health, Education, and Welfare would become references to the Secretary of Education; and (2) the terms "Secretary" and "Department" mean the Secretary of Education and the Department of Education, respectively.

Provides effective dates for the contract authority provisions and specified amendments made by this Act.