Higher Education Amendments of 1984

Higher Education Amendments of 1984 - Amends the Higher Education Act of 1965 (HEA) ("the Act") to revise and extend programs under the Act.

Sets forth amendments to title I of the Act, renaming such title "Continuing and Community Postsecondary Education."

Eliminates title I, part A provisions relating to the establishment of the Commission on National Development in Postsecondary Education.

Switches title I, part B provisions for Education Outreach Programs to part A and revises such provisions.

Decreases the portion of funds for Education Outreach Programs which is required to be used for State allotments from 90 to 50 percent. Increases the portion of such funds which is required to be available for Federal discretionary grants from ten to 40 percent.

Requires that each State use no more than 15 percent (currently, no less than 15 and no more than 20 percent) of its allotment for Education Outreach Programs to conduct comprehensive statewide planning. Revises the formulas (based on a range of appropriation amounts for this part) for determining when a State must use at least ten percent, and when it may not use more than ten percent, of its allotment for such purpose.

Deletes provisions relating to the National Advisory Council on Continuing Education, but refers to the National Advisory Council on Postsecondary Education which is established later in this Act.

Authorizes appropriations for FY 1986 through 1990 to carry out Education Outreach Programs.

Removes a limitation on the portion of a State allotment which may be used to carry out continuing education programs.

Adds new title I, part B provisions for Literacy Training. Directs the Secretary of Education to make grants to institutions of higher education and consortia of institutions that have entered into agreements to operate literacy training programs in their own communities and in rural areas in the vicinity. Sets forth requirements for literacy training program agreements, including: (1) establishment of academic credit courses combining undergraduate training in the humanities and social sciences with experience as tutors in a literacy training program; (2) requiring students in such courses to perform at least six hours of voluntary uncompensated service each week of the academic term with a community-based or other nonprofit organization as a tutor in such organization's literacy training program; and (3) providing that such service may be compensated under the work-study program and that preference in the award of work-study assistance will be given to eligible students performing such service.

Limits use of such grants for literacy training programs to covering specified program costs.

Directs the Secretary, to the extent that specified funds are available, to enter into technical assistance and coordination contracts with qualified nonprofit private organizations to assist, manage, and coordinate such literacy training programs.

Authorizes appropriations for FY 1986 through 1990 to carry out Literacy Training program provisions.

Adds new title I, part C provisions for Federal Correctional Education Assistance. (Provides that such part shall be known as the "Federal Correctional Education Assistance Act.") Declares the purposes of such part to be to provide financial assistance to the States to carry out educational programs for criminal offenders in juvenile and adult correctional institutions.

Authorizes appropriations for FY 1986 through 1990 to enable the Secretary of Education to make grants to States under such part. Allows such appropriations to remain available until expended. Authorizes the Secretary to make grants to State educational agencies and grants for programs of national significance.

Sets forth formulas for the allocation of funds under such part. Prohibits the use of funds for purposes inconsistent with the Juvenile Justice and Delinquency Prevention Act of 1974.

Sets forth permissible uses of grants made to States under such part, including: (1) academic programs for basic education, special education, bilingual or bicultural study, secondary school credit, postsecondary study, fine arts, recreation and health, and curriculum development; (2) vocational training; (3) library development and services; (4) teacher training; (5) educational release programs; (6) guidance; (7) supportive services; and (8) job training.

Sets forth requirements for State applications for assistance under such part.

Authorizes the Secretary to make, from specified reserved funds, grants to State and local educational agencies, institutions of higher education, State correctional agencies, and other public and nonprofit organizations and institutions to meet the costs of programs of national significance which the Secretary determines give promise of improving the education of criminal offenders.

Sets forth provisions for payment and withholding of funds under such part.

Switches provisions for a Veteran's Cost-of-Instruction Program from title IV to title I, part D. Extends such program payments to institutions of higher education through FY 1990.

Retains the formula for determining institutional eligibility for such payments, but raises the minimum number of veterans who must be enrolled in undergraduate attendance at an institution before such eligibility formula applies from 25 to 100. Makes technical and conforming amendments relating to such program.

Sets forth amendments to title II (College and Research Library Assistance and Library Training and Research) of the Act.

Authorizes appropriations for FY 1986 through 1990 for title II programs under part A (College Library Resources), part B (Library Training, Research, and Development), and part C (Strengthening Research Library Resources).

Establishes a Library Unit within the Office of Postsecondary Education which shall be responsible for administering and coordinating all library programs within the Department of Education.

Revises title II, part A (College Library Resources) provisions for resource development grants. Directs the Secretary, in selecting applicants for receipt of such grants, to rate each applicant who meets specified requirements in accordance with a numerical index established by regulation and based on the following factors (to be weighed according to the order in which they are listed): (1) the extent to which the institution is in the lowest quartile of applicants with respect to its library resource holdings; (2) the extent to which the institution's own effort in support of its library exceeds a specified percentage of its operating budget; (3) the number and percentage of low- income students; (4) whether the institution is eligible under title III (Institutional Aid) of the Act; and (5) such other factors as the Secretary determines relevant and useful (not to exceed ten percent of the points awarded under such index). Requires the National Institute of Education to: (1) evaluate the use of such index in allocating such funds to eligible applicants most in need; and (2) report the results of such evaluation to Congress by May 30, 1989.

Revises title II, part B (Library Training, Research, and Development) provisions for research and demonstration project grants and contracts. Directs the Secretary, in selecting recipients of such funds for FY 1986 and succeeding fiscal years, to give priority to expanding the study of the uses of information transfer and communications technology in libraries.

Sets forth amendments to title III (Institutional Aid) of the Act.

Adds to the definition of "eligible institution" for purposes of title III, part A (Strengthening Institutions) any institution of higher education which has an enrollment of which at least 40 percent are Mexican American, Puerto Rican, Cuban, or other Hispanic students, or combination thereof, and which also satisfies specified requirements for such eligibility.

Revises title III, part B, renaming such part "Strengthening Historically and Traditionally Black Colleges and Universities." Redefines "part B institution" to mean any historically or traditionally black college or university that maintains a student body that is at least 50 percent black students.

Directs the Secretary to make part B grants to institutions for specified purposes, including academic instruction in disciplines in which black Americans are underrepresented.

Directs the Secretary to make allotments of grants to part B institutions according to a formula based on the numbers of Pell Grant recipients, graduates, and graduates admitted to graduate or professional schools from such institutions. Sets forth reallotment provisions.

Sets forth part B grant application requirements, including requirements for annual reports to the Secretary and for auditing.

Sets forth provisions for grants to eligible part B independent professional or graduate institutions. Directs the Secretary, subject to the availability of funds appropriated for such purpose, to award program grants to such postgraduate institutions as may be eligible as part B institutions except that: (1) the institution offers a medical, dental, veterinary degree, or other graduate or professional degree beyond the baccalaureate degree; and (2) such independent, postgraduate institution listed under this Act is determined by the Secretary to be making a substantial contribution to the legal, medical, dental, veterinary, or other graduate education opportunities for black Americans. Limits the duration of such grants. Sets forth authorized uses of such grants. Sets forth application requirement, including a demonstration of how grant funds will be used to improve graduate educational opportunities for black and low-income students, and lead to greater financial independence. Lists the following independent professional or graduate institutions as eligible for such grants: (1) Morehouse School of Medicine; (2) Meharry Medical School; (3) Charles R. Drew Postgraduate Medical School; and (4) Atlanta University.

Sets forth reporting and audit requirements.

Sets forth criminal penalties for misuse of funds.

Revises title III, part C (Challenge Grants for Institutions Eligible for Assistance Under Part A or Part B) provisions. Adds to institutions eligible for such challenge grants any institution which received a grant in FY 1981 or 1982 to assist health professions schools in financial distress from the Department of Health and Human Services under specified provisions of the Public Health Service Act.

Adds the following provisions for endowment grants (which are similar in part to those added to the Act by the Challenge Grant Amendments of 1983, Public Law 98-95).

Establishes a program to provide matching endowment grants to institutions of higher education which are eligible for assistance under the challenge grant program. Authorizes the Secretary to award such matching endowment grants from sums available under the challenge grant program.

Limits the endowment grant period to not more than 20 years, during which time the institution may not withdraw or expend the endowment fund corpus (the amount of the grant plus the matching amount deposited by the institution). Permits the institution, after grant period termination, to use the endowment fund corpus plus any endowment fund income for any educational purpose.

Provides that institutions may receive more than one such grant, but may only receive such a grant for two fiscal years out of any period of five consecutive fiscal years.

Limits the amount of an endowment grant to an institution to: (1) not less than $50,000 for any fiscal year; and (2) not more than $250,000 for FY 1984 or $500,000 for FY 1985 or any succeeding fiscal year.

Permits an eligible institution to designate a foundation, which was established to raise money for the institution, as the recipient of the endowment grant. Sets forth requirements which the foundation and the institution must meet for such an award.

Sets forth requirements for investment of the endowment fund corpus and income. Permits an institution to withdraw and expend the endowment fund income to defray any expenses necessary to the operation of the college. Prohibits an institution from spending more than 50 percent of the total aggregate endowment fund income earned prior to the time of expenditure. Authorizes the Secretary to permit an institution to spend more than the 50-percent limit under specified emergency circumstances.

Provides for repayment by an institution of funds withdrawn prematurely from the endowment fund corpus or improperly expended from endowment fund income.

Set forth auditing requirements.

Directs the Secretary, in selecting eligible institutions for endowment grants, to: (1) give priority to an applicant which is a recipient of a title III grant under part A or part B, during the academic year in which the endowment grant is applied for; (2) give priority to an applicant with a greater need for such grant, based on the current market value of the applicant's existing endowment in relation to the number of full-time equivalent students enrolled at such institution; and (3) consider the effort made by the applicant to build or maintain its existing endowment fund and the degree to which an applicant proposes to match the grant with nongovernmental funds.

Sets forth provisions for endowment grant applications and approval.

Authorizes the Secretary to terminate and recover an endowment grant, after notice and opportunity for a hearing, if the grantee institution fails to properly expend, invest, or account for endowment funds.

Adds new title III, part D (Reservation for Hispanic Institution) provisions. Directs the Secretary to reserve at least $10,000,000 or 15 percent of appropriations for title III, part A (Strengthening Institutions), whichever is more, for Hispanic institutions as defined under part A.

Switches title III general provisions from part D to part E, and revises such general provisions.

Directs the Secretary to publish all policies and procedures required to exercise the authority to approve applications for grants under title III. Provides that no other criteria, policies, or procedures shall apply.

Directs the Secretary to: (1) use the most recent and relevant data concerning the number and percentage of students receiving need-based assistance under title IV (Student Assistance) of the Act in making eligibility determinations under title III, part A provisions for Strengthening Institutions; and (2) advance the base-year forward following each annual grant cycle.

Adds to title III general provisions relating to waiver authority. Directs the Secretary to waive specified title III requirements (including grant eligibility criteria involving an enrollment which includes a substantial percentage of students receiving title IV need-based assistance) in the case of an institution which: (1) is extensively subsidized by the State and charges low or no tuition; (2) serves a substantial number of low- and middle-income students as a percentage of its total student population; (3) is contributing substantially to increasing higher education opportunities for black Americans, Hispanic Americans, American Indians, and low-income individuals; or (4) is substantially increasing higher educational opportunities for individuals in rural or other isolated areas which are unserved by postsecondary institutions.

Revises requirements for the Secretary's annual report to Congress to exclude discussion of part B institutions and to include discussion of part D Hispanic institutions which have been determined eligible although not satisfying specified eligibility criteria involving low institutional expenditures per student.

Authorizes appropriations for FY 1986 through 1990 for institutional aid programs under parts A, B, and C of title III.

Raises the percentage of part A funds which must be made available to junior or community colleges from 24 percent to 30 percent. Requires that at least $10,000,000 or 15 percent of part A funds, whichever is more, be used for Hispanic institutions.

Sets forth amendments to title IV (Student Assistance) of the Act.

Renames part A of title IV "Need-Based Student Assistance" and revises the statement of purpose of such part. Renames subpart 1 of part A "Pell Grants," thus conforming to the already renamed grants program.

Extends the Pell Grants program through FY 1990.

Revises the formulas for determining the amount of each Pell Grant. Declares that the purpose of the program is to provide a Pell Grant that: (1) as determined under specified provisions for the amount of such grants, will meet 75 percent of a student's tuition and fees not in excess of $3,000; and (2) in combination with reasonable parental or independent student contribution and supplemented by work-study and institutional block grant programs, will meet 80 percent of a student's cost of attendance, unless the institution determines that a greater amount of assistance would better serve the purposes of part A.

Sets the amount of a Pell Grant for an eligible student at $3,000 for the award year from July 1, 1985, through June 30, 1986 (or for any subsequent award year, $3,000 plus the sum of specified inflation adjustments) minus the amount of the expected family contribution with respect to that student for that year. Retains provisions for proportional reductions or grants for part-time students.

Revises the maximum limit on a Pell Grant amount. Provides that such Grant shall not exceed the sum of: (1) 75 percent of tuition, required books, and uniform compulsory fees, plus (2) a standard cost allowance for each award year, as determined by the institution. Limits such standard cost allowance to: (1) $1,200 for a student residing with a parent or guardian; (2) $1,600 for a student residing neither with a parent or guardian nor in specified institutional housing; or (3) $2,000 for a student residing in institutionally owned, operated, or subsidized housing. Prohibits any Pell Grant from exceeding the sum of such tuition, books, fees, and cost allowance minus the expected family contribution. Retains the $200 minimum limit for Pell Grant awards, but eliminates provisions for exceptions to such limit.

Directs the Secretary, for each Pell Grant award year beginning after June 30, 1986, to publish: (1) the percentage change for the price index for the calendar year preceding the calendar year in which such award year begins; (2) an inflation adjustment, determined by a specified formula, for such award year, if the price index has increased by more than three percent; and (3) the Pell Grant amount in effect after taking into account each of the inflation adjustments determined.

Sets forth provisions for family contributions scheduled for Pell Grants.

Makes the period of student eligibility for Pell Grants five academic years, or the equivalent, but provides that no eligible student shall be precluded from receiving a Pell Grant for the first year of graduate or professional study because of such five-year limitation. Includes English instruction for individuals with limited English proficiency among those noncredit or remedial courses preparatory to pursuit of a baccalaureate degree for which Pell Grant support may be given to eligible students.

Retains provisions relating to Pell Grant application procedures and the noncontractor status of institutions.

Deletes certain provisions relating to insufficient available funds and to excess funds.

Deletes title IV, part A provisions for Supplemental Educational Opportunity Grants (subpart 2) and Grants to States for State Student Incentives (subpart 3), but continues the purposes of such programs under a new Institutional Block Grant program.

Switches to a new part C (Special Services) the title IV part A subparts 4 and 5 provisions for Special Programs for Students from Disadvantaged Backgrounds and Special Programs for Students Whose Families are Engaged in Migrant and Seasonal Farmwork.

Deletes those subpart 6 provisions for Assistance to Institutions of Higher Education which involve certain payments to institutions of higher education, but switches to title I those provisions of subpart 6 which involve veterans' cost-of-instruction payments to institutions of higher education.

Switches provisions for Work-Study Programs from title IV part C to title IV part A subpart 2, and revises such provisions.

Extends through FY 1990 the authorization of appropriations for Work-Study Programs.

Replaces provisions for allotment of work-study funds to States with provisions for allotment of such funds to institutions. Retains provisions for grants for work-study programs to institutions which enter into specified agreements. Deletes provisions relating to within-State distribution of assistance.

Sets forth provisions relating to sources of matching funds. Provides that nothing in provisions for Work-Study Programs shall be construed as restricting the source (other than Work-Study Programs funds) from which the institution may pay its share of the compensation of a student employed under a work-study program covered by an agreement. Allows such share to be paid to such student in the form of services and equipment (including tuition, room, board, and books) furnished by such institution.

Retains provisions for job location and development programs and agreements.

Revises provisions for work study for community service-learning on behalf of low-income individuals and families to include literacy and other language-proficiency services.

Establishes an Institutional Block Grant program, under title IV part A subpart 3, to permit institutions to make their own allocation decisions on the funding of certain student assistance programs. Declares that such Institutional Block Grant program is to permit such institutions to: (1) continue to provide supplemental grants, increase student employment, and operate institutional loan programs in a manner similar to that in which such activities were conducted prior to October 1, 1985, under the supplemental educational opportunity grant program, the State student incentive program, and the national direct student loan program; (2) capitalize a loan program to continue to use the Federal capital contribution to the national direct student loan (NDSL) program as part of the capital for the new loan program; and (3) supplement the funds available for work-study programs.

Authorizes appropriations for FY 1986 through 1990 for such Institutional Block Grant program.

Sets forth provisions for allotment of such block grant funds to institutions based on the amount of Pell Grants and guaranteed student loans made to students at an eligible institution. Requires that an eligible institution be allotted: (1) for FY 1986, at least the sum of the amounts such institution received for 1985, under provisions in effect prior to the start of FY 1986, for Supplemental Education Opportunity Grants, Grants to States for State Student Incentives, and the national direct student loan program (NDSL); and (2) for any succeeding fiscal year, at least 90 percent of the amount such institution received for the proceeding year under Institutional Block Grant provisions. Provides for ratable reduction of such allotments when appropriations are not sufficient.

Sets forth provisions relating to student eligibility for block grant assistance. Provides that such assistance may be made available only to a student who: (1) is an eligible student under title IV general provisions for student eligibility; and (2) has demonstrated need for financial assistance in accordance with the following formula. Provides that the amount of a student's need for financial assistance under the block grant program is equal to: (1) the cost of attendance (as determined under specified title IV general provisions), minus (2) the sum of the expected family contribution (computed in accordance with regulations prescribed under title IV general provisions) and any estimated financial assistance reasonably available to such student under Pell Grant and Work-Study programs. Prohibits an institution from reserving more than ten percent of its Institutional Block Grant allotment to provide assistance for less-than-half-time students who are otherwise eligible students.

Sets forth a matching requirement for institutional block grant recipients. Requires each institution receiving such allotment to contribute to Institutional Block Grant programs an amount from non-Federal sources equal to at least 15 percent of such allotment. Permits the institution to allocate such institutional contribution to meet: (1) the matching requirement for grants for Work-Study Programs with respect to any block grant funds transferred for use for work-study assistance; and (2) the capital contribution requirement with respect to block grant funds deposited in the student loan fund.

Sets forth authorized uses of Institutional Block Grant allotment funds. Permits such funds to be used to provide student financial assistance in the form of: (1) a grant (directly under Institution Block Grant provisions); or (2) additional work-study assistance (by a transfer of a portion of the block grant for use in accordance with provisions for Work-Study Programs). Permits such funds, together with funds available pursuant to specified provisions for student loans and for the transfer of the balance of national direct student loan (NDSL) funds, to also be used to provide student financial assistance in the form of a loan made in accordance with specified provisions for student loans.

Limits the sum of the financial assistance through such direct grants, additional work-study assistance, and loans to the need of such student as determined for purposes of eligibility for Institutional Block Grant assistance.

Provides that only one-half of the block grant allotment to an institution in any fiscal year may be used for making such student loans.

Prohibits block grant allotment funds from being deposited in the student loan fund established by such institution if the Secretary has determined that the default rate of such institution's loan program exceeds ten percent, unless the Secretary: (1) has, for each subsequent year, determined that such institution has made substantial progress (as defined under this Act) in reducing such default rate; or (2) determines that such institution is maintaining a default rate of less than ten percent for each subsequent year.

Sets forth provisions relating to student loans under the Institutional Block Grant program.

Requires any institution that desires to make loans to students from funds under its block grant allotment or funds made available from the transfer of the balance of NDSL funds to enter into a specified agreement with the Secretary. Requires that such agreements provide: (1) for the establishment and maintenance of a student loan fund for the purposes of the Institutional Block Grant program; (2) for the deposit in such fund of block grant funds permitted to be used for such loans, funds from the transfer of the NDSL program balance, an institutional capital contribution equal to at least one-ninth of the block grant funds deposited, collections of principal and interest on student loans made from deposited funds or funds deposited in the student loan fund maintained under NDSL provisions in effect prior to the start of FY 1986, late charges or other fees, and any other earnings of the fund; (3) that such fund shall be used only for student loans, administrative expenses, required capital distributions, and reasonable litigation and collection costs; and (4) for protection of the U.S. financial interest and promotion of the purposes of the Institutional Block Grant program.

Limits the maximum interest rate on such student loans under the Institutional Block Grant program to a percentage which is two percent less than the rate in effect under the guaranteed student loan (GSL) program as of the date of application for such loan.

Provides for a capital distribution of the balance of any such student loan fund under the Institutional Block Grant program if at any time after the establishment of such fund: (1) the institution notifies the Secretary that it intends to terminate the making of loans in accordance with program requirements; or (2) the Secretary finds (after notice and opportunity for hearing) that the institution has terminated the making of loans in accordance with such requirements. Sets forth procedures for such capital distribution. Requires institutions, after such capital distribution, to make payments of a specified proportionate share of principal and interest payments received, after deduction of litigation or collection costs not already reimbursed.

Provides that, if an institution has not entered into an Institutional Block Grant student loan fund agreement by the start of FY 1987, the institution's NDSL student loan fund shall be subject to a capital distribution in accordance with specified procedures to be applied in a special manner.

Sets forth requirements for institutional block grant agreements.

Sets forth provisions for the transfer of the balance of funds from an institution's student loan fund under the NDSL program to the institution's student loan fund under the Institutional Block Grant program.

Renames title IV part B as the "Guaranteed Student Loan Program," and revises provisions relating to the guaranteed student loan (GSL) program.

Declares that it is the purpose of part B to: (1) continue the GSL program established under such part as in effect prior to FY 1987; and (2) continue meeting the obligations incurred with respect to the federally- insured student loan (FISL) program (as so established), but only with respect to loans made under that program before FY 1987.

Sets forth title IV part B subpart 1 provisions for Guaranteed Loan Eligibility, Amounts, and Term.

Sets forth requirements for student eligibility for loans under the GSL program. Requires that a student, to be eligible for a GSL loan: (1) be eligible under title IV general provisions; (2) provide the lender with a statement from the eligible institution of the student's estimated cost of attendance and financial assistance; (3) have a family adjusted gross income of $65,000 or less; and (4) have the eligible institution provide the lender with a statement evidencing a determination of need and the amount of such need.

Sets forth GSL nondiscrimination provisions.

Sets forth provisions relating to the amounts of GSL loans.

Raises the maximum limit on GSL loan amount in any academic year to: (1) $3,000 in the case of a student who has not successfully completed a program of undergraduate education; or (2) $7,000 in the case of a graduate or professional student.

Retains limits on loan amounts to first-year students. Retains limits on aggregate unpaid principal amounts to undergraduate and to graduate or professional students, but adds provisions for computing such aggregate limits. Directs the Secretary to propose regulations to increase the aggregate limit for graduate and professional students if the Secretary: (1) finds that a substantial student dislocation will occur due to the inability of student borrowers to finance post-baccalaureate medical, dental, veterinary, legal, or other graduate degrees; (2) finds that low- and middle-income students find it impossible to pay for the cost of graduate and professional education; and (3) receives a unanimous recommendation to do so from the advisory committee on student financial assistance.

Provides that expected family contribution for purposes of the GSL program shall be determined by means of the schedule established under title IV general provisions.

Sets forth provisions for terms and conditions of GSL loans. Retains the five-to-ten-year repayment period, but provides that such period shall begin nine months after the month in which the student ceases to pursue a full-time course of study at an eligible institution (unless the GSL is made under a program which provides for the insurance of loans for part-time study at eligible institutions, in which case such repayment period shall begin nine months after the month in which the student ceases to carry at least one-half the normal full-time academic workload as determined by the institution). Retains provisions allowing agreements to shorter repayment periods and entitling borrowers to accelerate repayment without penalty. Allows forbearance in the enforcement of GSL repayment, with the approval of the applicable guarantee agency.

Provides that the GSL interest rate shall be the rate applicable to the borrower's outstanding balance or interest on any GSL loan made before the start of FY 1987. Provides that the GSL interest rate for borrowers who have no such outstanding balance of principal or interest on any such loan made before the start of FY 1987 shall be the current rate, as determined by specified provisions, as of the date of entering into the loan.

Sets such "current rate of interest" under the GSL program at eight percent for any calendar year which is not subject to a determination of the Secretary under the following provisions. Provides that, if the Secretary determines that the average bond equivalent rates of 91-day Treasury bills auctioned for any fiscal year exceeds 13 percent, then the "current rate of interest" under the GSL program during the next calendar year (beginning after the end of such fiscal year) shall be the average of such bond equivalent rates for such fiscal year, minus four percent, rounded to the next lower whole percent.

Provides that interest on the unpaid balance of any GSL loan shall be at a yearly rate equal to the applicable interest rate applied to the unpaid principal balance of the loan (exclusive of any premium for insurance which may be passed on to the borrower).

Retains provisions allowing a lender to charge a borrower interest at a rate less than the applicable GSL interest rate.

Retains provisions which make inapplicable to GSL loans any other provisions of law which limit the rate or amount of interest payable on loans.

Raises the minimum annual GSL repayment, for an individual or a married couple, to $900 or the balance of all GSL loans (including interest), whichever is less.

Revises provisions relating to periods during which periodic installments of GSL principal need not be paid. Removes the grace period with respect to borrowers who are members of the armed forces, officers in the Commissioned Corps of the Public Health Service, volunteers under the Peace Corps Act, or full-time volunteers under the Domestic Volunteer Service Act of 1973.

Retains borrower grace periods of specified lengths for uncompensated full-time volunteers in approved programs for tax-exempt organizations, full-time students, approved graduate fellowship program students, disabled individuals in approved rehabilitation programs, interns in the professions, termporarily totally disabled individuals or spouses unable to work because they must care for such individuals, and borrowers seeking and unable to find full-time employment. Deletes provisions which exclude such grace periods from the determination of the maximum repayment period. Retains provisions which allow: (1) deferment of interest payments until the date on which repayment of principal falls due; and (2) addition of such accrued interest to the principal on such date.

Sets forth provisions relating to disbursement of GSL loans.

Provides that the note or other written evidence of the GSL loan: (1) shall require the borrower to promptly notify the loan holder of any change of address; and (2) may contain provisions authorized by regulations relating to repayment in the event of default by the borrower.

Revises provisions for disclosure to students of loan information.

Sets forth provisions relating to GSL guarantee agencies entering into agreements with credit bureaus to exchange information concerning student borrowers.

Sets forth title IV, part B, subpart 2 provisions for Federal Support for the Guaranteed Student Loan System.

Revises provisions for interest subsidies for GSL loans which meet subpart 1 requirements and which are made by an eligible lender under a program of a guarantee agency and insured under a specified insurance agreement.

Establishes a new method for the determination of the quarterly rate of the special allowances on GSL loans.

Revises provisions for insurance agreement and obligations relating to interest subsidies for student loans insured under State or nonprofit private student loan insurance programs. Raises the maximum yearly and aggregate limits on such loans to the maximum limits for GSL loans under subpart 1. Requires that such loans be made, and subject to repayment, in accordance with the same terms and conditions (including interest rate provisions) as GSL loans under subpart 1.

Retains provisions relating to procedural requirements for applications for insurance and guarantee agreements by nonprofit private institutions in States without agreements.

Revises provisions for guarantee agreements and obligations relating to Federal reimbursement to non-Federal guarantee agencies in case of student borrower default on any GSL loan.

Revises provisions for supplemental guarantee agreements.

Requires that advances for reserve funds of insurance programs made by the Secretary under the GSL program (as in effect prior to October 1, 1986) shall be repaid within such period as the Secretary may deem appropriate in each case in the light of the maturity and solvency of the reserve fund for which the advance was made, except that such period may not in any case exceed five years after the date of disbursement of the advance. Requires that advances so repaid be deposited in the guaranteed student loan fund.

Retains provisions relating to administrative cost payments to guaranteeing agencies.

Retains provisions relating to guarantee agency agreements with eligible lenders for the purpose of authorizing multiple disbursements of loan proceeds.

Retains provisions for discharge payments in cases of student borrower death, permanent and total disability, or bankruptcy.

Retains specified restrictions on institutional lenders under the GSL program.

Sets forth title IV part B (GSL program) subpart 3 provisions for Related Loan Programs.

Revises provisions for parent loans to undergraduate students. Deletes provisions for graduate or professional student eligibility to be treated as "parents" for purposes of taking out "parent loans" on their own behalf.

Authorizes refinancing of parent loans under specified conditions. Removes limits on the interest rate for parent loans. Requires that any insurance provided by the Secretary for parent loans shall be provided in accordance with specified requirements relating to Federal loan insurance, as in effect at the end of FY 1986. Directs the Secretary, after notice and opportunity for a hearing on the record, to terminate the status of any lender as an eligible lender under the GSL program upon determination that such lender has made parent loans in a manner inconsistent with prudent and reasonable lending practices (as determined on the basis of the lending practices that are customary among lending institutions when making loans which are not insured or guaranteed by governmental programs).

Sets forth provisions for consolidation of loans under the GSL program or under the national direct student loan program (the NDSL as in effect prior to the start of FY 1986). Authorizes the Secretary or a guaranteeing authority to enter into specified consolidation loan agreements with eligible lenders. Sets the interest rate for such consolidation loans at nine and one-half percent, with specified exceptions. Terminates the authority to make such consolidation loans at the close of FY 1991.

Revises provisions for a GSL lender of last resort in each State.

Sets forth administrative provisions for discontinued loan programs. Provides that the Secretary shall continue to have all the duties, obligations, powers, authorities, responsibilities, rights, and privileges with respect to loans made, insured, or guaranteed under part B which are outstanding at the start of FY 1987, as the Secretary had with respect to such loans under such part as in effect prior to such date.

Sets forth title IV part B (GSL program) subpart 4 provisions for Program Administration and Definitions. Retains provisions relating to the Secretary's legal powers and responsibilities under part B. Sets forth provisions barring specified defenses to loan collection. Sets forth civil penalties for specified violations by lenders or guaranteeing agencies. Sets forth statute of limitations provisions.

Establishes a guaranteed student loan fund.

Revises provisions relating to the Student Loan Marketing Association (Sallie Mae). Deletes references to a specified authorization of appropriations for purposes of establishing Sallie Mae. Extends through FY 1991 the authority of the Secretary to guarantee payment when due of principal and interest on obligations issued by Sallie Mae in an aggregate amount determined by the Secretary in consultation with the Secretary of the Treasury. Extends indefinitely a provision that the priority (in bankruptcy proceedings) in favor of the United States shall not establish a priority over the indebtedness of Sallie Mae. Deletes provisions relating to: (1) loan consolidation by Sallie Mae; and (2) Sallie Mae as a direct lender.

Sets forth definitions used under part B.

Sets forth title IV part C provisions for Special Services.

Sets forth title IV part C subpart 1 provisions for Special Programs for Students from Disadvantaged Backgrounds. (Switches such provisions from title IV part A subpart 4.) Extends through FY 1990 the authorization of appropriations for such special programs, including: (1) Talent Search programs; (2) Upward Bound programs; (3) special services for disadvantaged students; (4) educational opportunity centers; and (5) staff development activities.

Sets forth title IV part C subpart 2 provisions for Special Programs for Students Whose Families Are Engaged in Migrant and Seasonal Farmwork. (Switches such provisions from title IV part A subpart 5.) Extends through FY 1990 the authorization of appropriations for such special programs, including services under the high school equivalency program and college assistance migrant program projects.

Deletes title IV part D provisions for Direct Loans to Students in Institutions of Higher Education (the national direct student loan-NDSL-program). (Cf. provisions relating to the NDSL program under Institutional Block Grant provisions of title IV part A subpart 3 of this Act.)

Sets forth title IV part D General Provisions Relating to Student Assistance Programs. (Switches such provisions from title IV part E.)

Revises need analysis provisions to modify one of the basic criteria to be followed in promulgating regulations with respect to expected family contributions. Changes such criterion from "any educational expenses of other dependent children in the family" to "any tuition paid for other dependent children in the family." Deletes a provision which includes under "effective family income" any amount paid under the Social Security Act to, or on account of, the student which would not be paid if he or she were not a student. Directs the Secretary to use a specified series of assessment rates in determining the expected family contribution for any academic year. Directs the Secretary to approve a schedule for determining the effective family contribution and effective family income of an independent student. Revises the definition of "independent student" for title IV purposes. Raises the minimum allowance for room and board for a student without dependents residing at home with parents from $1,100 to $1,200 per academic year.

Revises provisions for forms and regulations to require the Secretary to adhere to specified schedules for: (1) development and distribution of Federal multiple data entry forms; (2) guaranteed student loan need analysis; and (3) allocation of institutional block grant and college work-study funds. Provides that any additional regulatory changes initiated by the Secretary which affect the general administration of title IV programs and which have not been published in final form by April 1 prior to the start of the award year shall not be effective until the beginning of the second award year after the April 1 date.

Retains provisions relating to student eligibility and institutional and financial assistance information for students.

Extends through FY 1990 the authorization of appropriations for training in financial aid and student support services.

Retains provisions relating to program participation agreements, transfer of allotments, administrative expenses, and criminal penalties.

Provides for the establishment of a national center for postsecondary educational opportunity. Authorizes the Secretary, to the extent that funds are appropriated, to enter into a contract with an appropriate institution of higher education or public or private agency or organization to pay all or part of the cost of the establishment of such center. Provides that such center will: (1) coordinate development and dissemination of preeligibility information for Federal, State, and institutional student assistance and information regarding postsecondary access; (2) develop materials as necessary to increase student awareness of those Federal student assistance programs and postsecondary opportunities; and (3) operate short-term training institutes to enable junior and senior high school counselors and teachers, personnel engaged in special programs for students with disadvantaged backgrounds, college admissions personnel, and community agency staffs to more effectively counsel students regarding postsecondary opportunity and financial aid eligibility and availability. Directs the Secretary, in determining whether to enter into such a contract, to consider the ability of the applicant to involve specified associations in the operation of the center. Authorizes appropriations for FY 1987 through 1991 for such center.

Deletes provisions relating to the National Commission on Student Financial Assistance.

Establishes an advisory committee on student financial assistance in the Department of Education to advise the Secretary and the Assistant Secretary for Postsecondary Education. Sets forth provisions for committee membership. Includes among committee duties: (1) annual reports to the Secretary and the Congress on all forms and sources of student assistance; and (2) collection and annual compilation of information from guarantee agencies on GSL borrowers. Requires guarantee agencies to submit information describing specified characteristics of: (1) GSL borrowers for whom default claims are submitted for Federal reinsurance; and (2) GSL borrowers starting with the second fiscal year following the establishment of the committee at the start of FY 1987.

Revises and retitles title V of the Act "Teacher Training Programs" (thus deleting references to the already repealed part A Teacher Corps Program).

Establishes, as a new part A of title V, the Carl D. Perkins Scholarship Program to make grants to States for postsecondary education scholarships to outstanding high school graduates who demonstrate an interest in teaching, to enable and encourage those individuals to pursue teaching careers in elementary or secondary education.

Authorizes appropriations for FY 1986 and subsequent fiscal years for such Carl D. Perkins scholarships. Directs the Secretary to allocate such funds among the States according to population and to make specified allocations to certain U.S. territories and possessions.

Sets forth requirements for State applications for such grants. Includes among such requirements assurances that efforts will be made to attract students who: (1) are from low-income backgrounds; or (2) express a willingness or desire to teach in schools having less than average results or serving large numbers of economically disadvantage students.

Sets such individual scholarship awards at $5,000 for each academic year of postsecondary education for study in preparation to become an elementary or secondary education teacher. Limits such scholarship assistance to four years of postsecondary education. Provides that such scholarships shall not be considered in determining eligibility for student assistance under title IV of the Act. Prohibits the individual scholarship award, when added to the title IV assistance, from exceeding the cost of attendance.

Requires that Carl D. Perkins scholars be selected by a statewide panel which: (1) is appointed by the administrative head of the State educational agency, acting in consultation with the State higher education executive officer, where appropriate, and approved by the Secretary of Education; and (2) includes representatives of State legislators, school administrators, teachers, and parents. Requires that such scholar selections be made from students who rank in the top five percent of their high school graduating class. Directs the statewide panel to develop procedures and crieteria for selection, including grades, extracurricular activities, financial need, and interest in teaching as expressed in a written essay by the applicant. Authorizes the panel to require letters of recommendation.

Sets forth conditions for continuation of such scholarship assistance to recipients, including full-time enrollment and satisfactory progress in a course of study leading to teacher certification.

Requires scholarship recipients to agree to teach, for at least two years for each year for which assistance was received, in an elementary or secondary school or a public education program in the State in which the scholarship was awarded, within the ten-year period after completing the postsecondary education for which the scholarship was awarded.

Requires repayment of scholarships by recipients found to be in noncompliance with such agreement. Sets forth exceptions to such repayment requirements.

Sets forth provisions for Federal administration of State programs for such scholarships under specified circumstances and judicial review of the Secretary's disapproval of a State program.

Establishes, as a new part B of title V, the "Talented Teacher Fellowship Program," a national fellowship program for outstanding teachers.

Authorizes appropriations for such fellowships to outstanding teachers for FY 1986 and subsequent fiscal years. Limits to two and one-half percent that portion of such funds which may be used for administration.

Requires that such funds be used to award: (1) two national teacher fellowships to public school teachers teaching in each congressional district of each State, the District of Columbia, and the Commonwealth of Puerto Rico; and (2) one such fellowship in Guam, the Virgin Islands, American Samoa, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.

Limits individual fellowship awards to $25,000. Prohibits any individual from receiving such award more than once. Requires talented teacher fellows to return to a teaching position in their current school district for at least two years following the award, subject to specified repayment provisions.

Permits such fellows to use such awards for such projects improving public education as the Secretary may approve, including: (1) sabbaticals for study, research, travel, or academic improvement; (2) curriculum development; (3) consultation with or assistance to other school districts; (4) development of special innovation programs; (5) community relations; or (6) model teacher programs and staff development.

Establishes a National Selection Board for Talented Teaching Fellows. Sets forth provisions for membership and procedures.

Requires fellowship applicants to submit proposals for projects, and indicate the extent to which they wish to continue current teaching duties, to the local education agency (LEA) for comment prior to submission to the Committee. Directs the Committee, in evaluating proposals, to: (1) consult with the LEA; (2) request recommendations from two teaching peers, the principal, and the superintendent; and (3) consider other appropriate criteria. Directs the Secretary to prescribe regulations for such selections.

Requires repayment of such fellowship awards in the case of fraud or noncompliance in completing the project undertaken, as determined by regulations of the Secretary.

Authorizes the Secretary to appoint, for up to three-year terms, up to five technical employees to administer title V Teacher Training Programs who may be appointed and paid without regard to specified provisions of Federal law governing appointments to the competitive service and relating to classification and pay rates.

Deletes part C provisions for Training for Elementary and Secondary School Teachers to Teach Handicapped Children in Areas With a Shortage.

Replaces part B provisions for Teacher Training Programs and part D provisions for Coordination of Education Professional Development with new parts C, D, E, and F provisions for teacher training Institutes and Workshops, Professional Development Institutional Assistance for Teacher Training and School Improvement, and Data Collection and Research on Evaluation of Education Personnel.

Sets forth title V part C provisions for Institutes and Workshops ("national institutes"). Directs the Secretary, from funds available for such part, to make grants to institutions of higher education to support summer institutes and workshops for elementary and secondary school educators to improve: (1) their knowledge and skills in all areas of teaching; (2) their instructional and administrative skills; and (3) the knowledge and application of evaluation of teacher performance. Authorizes the Secretary, upon request of the State educational agency (SEA), to make grants to other public educator training agencies as established by the SEA prior to January 1, 1983. Directs the Secretary to: (1) prepare a program implementation plan for part C national institutes programs; (2) submit such plan to specified congressional committees by the start of the fiscal year preceding the award of funds for such programs. Prohibits funds from being obligated for expenditure under or expended for any such program unless: (1) a specified period of time has passed after such submission; or (2) each such committee before the expiration of such period has transmitted written notice that it has no objection to the plan.

Sets forth title V part D provisions for Professional Development.

Directs the Secretary, from amounts authorized for such part, to make grants to provide professional development opportunities for elementary and secondary school educators. Permits such grants to be used to: (1) establish and operate specialized seminars for elementary and secondary school teachers and administrators on instructional techniques, classroom management, use of technology and resources, motivation, and other similar areas; (2) develop training and support systems for beginning teachers, such as mentor programs; (3) assist projects to apply educational research and evaluation findings to classroom and school settings; and (4) establish and operate professional development resource centers that emphasize efforts among educators to improve teaching skills, share and adapt instructional resources, and apply innovative teaching techniques in the classroom.

Requires applicants for such funding of a professional resource center to demonstrate that the grant proposal was developed in coordination with the SEA and has been approved by the local educational agency (LEA) concerned, with LEA consent to release educators to participate in center activities. Permits any institution of higher education or consortium of such institutions or nonprofit organization of teachers or administrators (or both) to apply for such grants. Provides that no such institution or consortium will be eligible for such a grant unless its application demonstrates that the grant proposal was developed, and will be carried out, with the active participation of elementary and secondary school teachers in setting goals, organizing the centers, and allocating resources.

Sets forth title V part E provisions for Institutional Assistance for Teacher Training and School Improvement, including teacher education exemplary programs, and school-college partnerships.

Directs the Secretary, from amounts available for such purpose, to make grants to institutions of higher education which have a school, college, or department of education to: (1) fund research and faculty improvement; (2) assess their programs and introduce curricular changes, technological improvements, and enhanced practice teaching experience; (3) improve coordination between teacher training and other departments; (4) provided incentives for programs to recruit students to prepare to be teachers in areas of particular need; and (5) promote other innovative activities within such institutions and departments.

Directs the Secretary, from amounts available for such purpose, to make grants to institutions of higher education which have a school, college, or department of education to establish exemplary programs to encourage such institutions and departments to redesign and experiment with their educator training (including inservice), planning and development efforts, including teacher involvement in the assessment of the project. Gives priority to applications for such grants which include cooperative arrangements with other departments of the institution or with other institutions in the vicinity.

Directs the Secretary, from specified amounts for such purpose, to make grants to promote the sharing of technological resources and faculty, and consultation on management and administration, between an elementary or secondary school or school district and an institution of higher education. Requires that applications for such grants be submitted jointly by a school or school district and an institution of higher education. Gives preference to proposals which will provide or improve services to the handicapped or economically or educationally disadvantaged children. Permits such grants to be used to promote cooperative programs between schools, colleges, and departments of education and local school districts by allowing more extensive mentor programs for students and beginning teachers which: (1) provide intensified cooperation in providing practical experience for student teachers; (2) permit faculty exchanges to give professors elementary or secondary school classroom experience and allow classroom teachers to work with student teachers in institutions of higher education; (3) assist cooperative research projects; or (4) establish experimental and innovative programs.

Sets forth title V part F provisions for Data Collection and Research on Evaluation of Educational Personnel, including assessment of teaching personnel needs and a grants program for evaluation studies.

Directs the Secretary to assess the current and future supply and demand for teachers, with particular attention to long-term and short-term shortages of personnel in various areas of specialization, shortages in particular States or regions, and the numbers of minorities and women entering teaching. Directs the Secretary to include the results of such assessment in the annual report to Congress under specified provisions of the Department of Education Organization Act.

Directs the Secretary, through grants made by the National Institute of Education, to support studies of evaluation methods, teacher education, and professional development for teachers and other school personnel. Permits such studies to include assessments of ongoing evaluation programs, research and development on new evaluation programs, assessments of the costs and benefits of alternative evaluation methods, and studies of the degree to which evaluation programs affect teacher incentives to improve and remain in classrooms. Permits such grants to be issued to LEAs, institutions of higher education, or other organizations involved in research and evaluation on effective teaching and school performance. Provides that projects funded under such part F should include the collaboration of classroom teachers or their representatives in order to assure effective and equitable practice.

Sets forth title V part G provisions for Authorization of Appropriations for Parts C, D, E, and F. Authorizes appropriations for FY 1986 through 1990 for parts C and D. Provides that a specified first portion of such appropriations shall be available for part C. Authorizes appropriations for FY 1986 through 1990 for parts E and F. Provides that a specified portion of such appropriations shall be available for certain provisions of part E and part F.

Revises title VI (International Education Programs) of the Act.

Renames title VI provisions for international studies centers as "language training centers." Revises such provisions to eliminate references to international studies at such centers and to emphasize intensive foreign language studies by students, faculty, and scholars in critical and less frequently taught languages.

Adds to title VI new provisions for a foreign language periodical center. Authorizes appropriations for FY 1987 through 1991 to provide assistance for the establishment and operations of such a center. Directs the Secretary, from such appropriations, to make a grant to an institution of higher education or a public or nonprofit private library institution (or consortium of such institutions) to establish and operate a foreign periodical center which will: (1) acquire foreign periodicals which are not commonly held, which are of scholarly or research importance, and which are published in foreign countries; (2) maintain current bibliographic information on such periodicals in machine readable form and enter this information into one or more of the widely available bibliographic data bases; (3) preserve such periodicals; and (4) make such periodicals available to other institutions upon request. Directs the Secretary, in the selection of a grant recipient, to approve as a recipient only an institution or consortium which has already an established library or consortium of libraries with an extensive foreign language periodical collection. Provides that nothing in provisions for such center shall be considered to amend, affect, or define specified provisions of Federal law relating to copyright.

Extends through FY 1990 the authorization of appropriations for title VI part A (International and Foreign Language Studies).

Authorizes additional appropriations for FY 1986 through 1990 to provide funds to established overseas language centers administered by the Department of Education. Provides that such appropriations shall be available for three-year grants. Provides that no center shall be ineligible for a subsequent grant by reason of receiving a previous grant.

Extends through FY 1990 the authorization of appropriations for title VI part B (Business and International Education Programs).

Redesignates title VI part C (General Provisions) as part D.

Adds new title VI part C provisions for Faculty and Student Study Abroad.

Directs the Secretary to make grants to institutions of higher education to support faculty study abroad. Provides that such grants shall equal $15 for each "full-time equivalent student" enrolled at an eligible instiutition, except that institutions with 500 to 1,000 such students shall be eligible for $15,000 grants. Provides for ratable reduction of such grants in case of insufficient funds. Sets forth grant application requirements, including assurances by institutions and agreements by faculty members. Authorizes appropriations for FY 1986 through 1990 for such grants for faculty study abroad.

Directs the Secretary, from amounts available for such purpose, to make grants to institutions of higher education, or consortia of such institutions, to provide assistance to enable advanced foreign language students to develop their language skills and their knowledge of foreign cultures and societies through study abroad. Allows such study to be combined with an internship in an international business enterprise. Makes any institution or consortium whose application is approved eligible for a grant for up to one-half the cost of providing such assistance. Sets forth grant application requirements, including: (1) institutional assurances that the program will provide the opportunity to combine language study with studies in specified fields for students majoring in such fields if they can qualify as proficient in the language; and (2) a description of the proposed program of study abroad in any country or geographic area or region designated by a specified title VI advisory board to be of concern to the national interest. Permits grant funds to be used to cover costs associated with the study abroad. Provides for ratable reduction of grants in case of insufficient funds. Authorizes appropriations for FY 1986 through 1990 for such grants for student study abroad.

Directs the Advisory Board for title VI programs, in addition to its other duties, to advise the Secretary and the Director of the Office of International Education on: (1) trends in student enrollment that may lead to shortages in expertise on countries, geographic areas and regions, and languages; (2) the impact of international education programs on the needs of international business, foreign policy, and education; and (3) the countries, geographic areas and regions, and languages which should be considered of concern to the national security and other interests of the United States and accorded higher priority for study and for title VI assistance. Directs the Advisory Board to establish the countries, geographic areas and regions, and languages for which grants may be made available for student study abroad after taking such priorities into account.

Adds to title VI new provisions for cross-national study funds. Authorizes appropriations for FY 1986 through 1990 to the National Institute of Education to cover the cost of U.S. participation in the conduct of cross-national studies in education.

Amends the Department of Education Organization Act to establish in the Department of Education a Center for International Education, to be administered by a Director of International Education who shall be appointed by the Secretary. Requires the Director to: (1) report directly to the Secretary; (2) be responsible for administration of programs under title VI of the Act (HEA); (3) consult with the Advisory Board on the conduct of such programs; and (4) perform any additional functions prescribed by the Secretary. Requires that the Center establish a clearinghouse for information on assistance available to promote the study of foreign countries, geographic areas and regions, and languages under title VI of the Act (HEA), under other Federal law, and from other public and private sources.

Revises title VII (Construction, Reconstruction, and Renovation of Academic Facilities) of the Act (HEA).

Deletes title VII parts A and B provisions for grants for construction, reconstruction, and renovation of undergraduate (part A) and graduate (part B) academic facilities.

Redesignates title VII part C provisions for Loans for Construction, Reconstruction, and Renovation of Academic Facilities as part A. Extends through FY 1990 the authorization of appropriations for such loan program. Raises the minimum non-Federal portion of the development cost of any project for which such a loan is made, from 20 percent to 50 percent. Adds to authorized functions of the Secretary under such loan program specified powers of foreclosure and acquisition.

Adds to title VII new part B provisions for Grants for the Purchase of Laboratory, Research, and Other Instructional Equipment.

Authorizes appropriations for FY 1986 through 1990 for such grants program. Directs the Secretary from the amount appropriated for such program for any fiscal year, to make grants to institutions of higher education to assist in acquisition and installation of such equipment. Directs the Secretary in selecting grant recipients to insure that funds are equitably distributed among the geographic areas of the United States and among the various types of institutions of higher education. Requires such institutions to provide matching funds covering at least one-half of the total cost of the acquisition and installation of the equipment for which such grant funds are sought.

Revises title VII General Provisions to make conforming amendments which delete provisions for recovery of payments under the deleted grant programs for construction of undergraduate and graduate academic facilities.

Revises title VIII (Cooperative Education) of the Act. Extends through FY 1990 the authorization of appropriations for: (1) grants for programs of cooperative education (revising and renaming such grants program to cover comprehensive programs of cooperative education); and (2) grants and contracts for research and training. Provides that appropriations under title VIII shall not be available for the payment of compensation of students for employment by employers under arrangements pursuant to such title. Provides that a grant (under the revised program of grants for comprehensive programs of cooperative education) shall, subject to the availability of appropriations, be not less than $1,000,000 nor more than $3,500,000 for each of the five years of eligibility. Requires an institution selected for receipt of such a grant to enter into an agreement with the Secretary which contains: (1) assurances of compliance with specified requirements; and (2) a five-year budget for the program that demonstrates to the satisfaction of the Secretary that the institution will obtain and maintain compliance with such requirements.

Revises title IX (Graduate Programs) of the Act.

Adds to authorized activities which may be carried out with specified funds for research and studies under part A (Grants to Institutions of Higher Education) of title IX the identification and recruitment of minorities and women for graduate and professional education (but does not provide for extending the authorization of appropriations for part A beyond FY 1985).

Revises part B (Fellowships for Graduate and Professional Study) of title IX to provide that grants by the Secretary under such part shall, subject to the appropriation of funds, be available for a period of three years. Raises to $9,000 the maximum award of a fellowship under such part for financially needy graduate and professional students. Requires the institution, in selecting recipients of such awards, to give priority to those students whose demonstrated level of financial need is the greatest. Extends through FY 1990 the authorization of appropriations for part B fellowships for graduate and professional study.

Renames the title IX part C National Graduate Fellows Program the Jacob K. Javits Fellows Programs. Extends through FY 1990 the Secretary's authority to award fellowships under such program. Provides that such fellowships shall be known as "Jacob K. Javits Fellowships." Provides that such fellowships shall be for graduate study in the arts, humanities, social sciences, and other areas of national interest. Renames the National Graduate Fellows Program Fellowship Board the Jacob K. Javits Fellowship Board. Limits to $9,000 the amount of any stipend paid to an individual awarded such a fellowship.

Revises title IX part D (Assistance for Training in the Legal Profession). Increases from six months to nine months the period of preliminary training for which costs may be paid from grant or contract funds under such part. Extends through FY 1990 the authorization of appropriations for part D assistance for training in the legal profession.

Revises title IX part E (Law School Clinical Experience Programs) to extend through FY 1990 the authorization of appropriations for such part E programs.

Revises title X (Fund for the Improvement of Postsecondary Education) of the Act.

Revises title X part A (Establishment and Operation of the Fund) to require that the Director of the Fund: (1) be appointed by the Secretary with the advice of the National Board of the Fund; and (2) report directly to the Secretary and not be under the supervision or direction of any other officer of the Department of Education. Extends through FY 1990 the authorization of appropriations for part A provisions for establishment and operation of the Fund for the Improvement of Postsecondary Education.

Replaces title X part B provisions for Establishment of Agencies (and which refer to the establishment of a Community College Unit within the Department of Education) with new part B provisions for a Minority Institutions Science Improvement Program. Establishes an Office of the Minority Institutions Science Improvement Program within the Department of Education. Provides that the head of such office shall be a Director who shall: (1) be appointed by the Secretary with the advice of a specified advisory board established under this Act; and (2) report directly to the Secretary and not be under the supervision or direction of any other officer of the Department. Makes such Office responsible for the administration of the Minority Institutions Science Improvement Program authorized under specified provisions of the General Education Provisions Act (as added by the Education Amendments of 1980). Directs the Secretary to establish an advisory board for the Minority Institutions Science Improvement Program to advise the Secretary and the Director with respect to such program. Sets forth provisions for Board membership and duties. Requires the Director to make available information and assistance to enable the Board to carry out its functions.

Revises title XI (Urban Grant University Program). Extends through FY 1990 the authorization of appropriations for such title XI program. Permits other entities within the community, including the applicant university, to pay the non-Federal share of the cost of projects under such program. Provides that the Federal share of such project cost shall not exceed 90 percent.

Includes planning services under title XI programs. Makes technical amendments to title XI definitions.

Redesignates title XII (General Provisions) as title XIII.

Adds new title XII provisions for Institutional Endowment Development.

Establishes a program to provide matching endowment grants to institutions of higher education which are eligible for assistance under the challenge grant program (part C of title III of HEA).

Authorizes the Secretary of Education to award such matching endowment grants from sums available under the challenge grant program.

Limits the endowment grant period to not more than 20 years, during which time the institution may not withdraw or expend the endowment fund corpus (the amount of the grant plus the matching amount deposited by the institution). Permits the institution, after grant period termination, to use the endowment fund corpus plus any endowment fund income for any educational purpose.

Provides that institutions may receive more than one such grant, but may only receive such a grant for two fiscal years out of any period of five consecutive fiscal years.

Limits the amount of an endowment grant to an institution to: (1) not less than $50,000 for any fiscal year; and (2) not more than $250,000 for FY 1986 or $500,000 for FY 1987 or any succeeding fiscal year.

Permits an eligible institution to designate a foundation, which was established to raise money for the institution, as the recipient of the endowment grant. Sets forth requirements which the foundation and the institution must meet for such an award.

Sets forth requirements for investment of the endowment fund corpus and income. Permits an institution to withdraw and expend the endowment fund income to defray any expenses necessary to the operation of the college. Prohibits an institution from spending more than 50 percent of the total aggregate endowment fund income earned prior to the time of expenditure. Authorizes the Secretary to permit an institution to spend more than the 50-percent limit under specified emergency circumstances.

Provides for repayment by an institution of funds withdrawn prematurely from the endowment fund corpus or improperly expended from endowment fund income.

Set forth auditing requirements.

Directs the Secretary, in selecting eligible institutions for endowment grants, to: (1) give priority to an applicant with a greater need for such grant based on the current market value of the applicant's existing endowment in relation to the number of full-time equivalent students enrolled at such institution and in relation to the number of such students at such institution who are recipients of assistance under title IV part A (Need-Based Student Assistance); and (2) consider the effort made by the applicant to build or maintain its existing endowment fund and the degree to which an applicant proposes to match the grant with nongovernmental funds.

Sets forth provisions for endowment grant applications and approval.

Authorizes the Secretary to terminate and recover an endowment grant, after notice and opportunity for a hearing, if the grantee institution fails to properly expend, invest, or account for endowment funds.

Directs the Secretary to use the most recent and relevant data concerning the number and percentage of students receiving title IV part A need-based student assistance, for purposes of making title XII institutional endowment development grant determinations.

Sets limitations on the uses of title XIII grant funds.

Authorizes appropriations for FY 1986 and succeeding fiscal years to carry out the title XIII institutional endowment development grant program.

Redesignates title XII (General Provisions) as title XIII and revises such general provisions.

Sets forth a definition of "State higher education agency."

Directs the Secretary, within six months after enactment of this Act, to promulgate regulations in accordance with the recommendations in a May 1982 report on "Postsecondary Education in the U.S. Territories," in order to adapt programs under the Act to the needs of specified U.S. territories and possessions.

Adds provisions authorizing appropriations for certain special postsecondary institutions. Authorizes appropriations for FY 1986 through 1990 for: (1) Howard University; (2) Gallaudet College; and (3) programs under the National Technical Institute for the Deaf Act. Authorizes appropriations for FY 1985 through 1987 for the John W. McCormack Institute.

Sets forth a requirement for congressional approval of regulations under the Act. Terminates the Secretary's authority to promulgate regulations under the Act unless such regulations are submitted for review and approval by Congress. Provides that such a regulation shall take effect only upon the enactment of a joint resolution of approval with respect to such regulation.

Establishes a National Advisory Commission on Postsecondary Education in the Department of Education. Sets forth provisions for Commission membership. Directs the Commission to: (1) advise the Secretary on matters affecting higher education, student assistance, college libraries and facilities, teacher preparation, endowment, and construction needs; (2) submit an annual report to the Secretary and the Congress.

Sets forth provisions for biomedical education projects for economically disadvantaged students. Authorizes the Secretary to make grants to, and contracts with, institutions of higher education to offer projects to educate, motivate, and encourage students from an economically disadvantaged background to pursue training at the undergraduate and graduate levels in the biomedical sciences. Limits the amount of such grant or contract in any fiscal year to $2,400 for each talented student from an economically disadvantaged background who was a full participant in the project in the academic year ending in that fiscal year. Sets forth requirements relating to such projects. Sets forth application requirements for such assistance. Includes among authorized uses of such project assistance monthly stipends of up to $30 per month for target students who are full-time project participants. Authorizes appropriations for FY 1986 through 1990 for such projects (to remain available for expenditure or obligation through FY 1991). Provides that up to five percent of such funds shall be used for project evaluations.

Amends the Tribally Controlled Community College Assistance Act of 1978 to extend through FY 1990: (1) a formula for determination of the amount of the grant to each tribally controlled community college; (2) the authorization of appropriations for technical assistance contracts; and (3) the authorization of appropriations for the tribally controlled community college endowment program.