 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part F--General Provisions Relating to Student Assistance Programs
 
Sec. 1094a. Regulatory relief and improvement


(a) Quality Assurance Program

                           (1) In general

        The Secretary is authorized to select institutions for voluntary 
    participation in a Quality Assurance Program that provides 
    participating institutions with an alternative management approach 
    through which individual schools develop and implement their own 
    comprehensive systems, related to processing and disbursement of 
    student financial aid, verification of student financial aid 
    application data, and entrance and exit interviews, thereby 
    enhancing program integrity within the student aid delivery system.

                   (2) Criteria and consideration

        The Quality Assurance Program authorized by this section shall 
    be based on criteria that include demonstrated institutional 
    performance, as determined by the Secretary, and shall take into 
    consideration current quality assurance goals, as determined by the 
    Secretary. The selection criteria shall ensure the participation of 
    a diverse group of institutions of higher education with respect to 
    size, mission, and geographical distribution.

                             (3) Waiver

        The Secretary is authorized to waive for any institution 
    participating in the Quality Assurance Program any regulations 
    dealing with reporting or verification requirements in this 
    subchapter and part C of subchapter I of chapter 34 of title 42 that 
    are addressed by the institution's alternative management system, 
    and may substitute such quality assurance reporting as the Secretary 
    determines necessary to ensure accountability and compliance with 
    the purposes of the programs under this subchapter and part C of 
    subchapter I of chapter 34 of title 42. The Secretary shall not 
    modify or waive any statutory requirements pursuant to this 
    paragraph.

                          (4) Determination

        The Secretary is authorized to determine--
            (A) when an institution that is unable to administer the 
        Quality Assurance Program shall be removed from such program; 
        and
            (B) when institutions desiring to cease participation in 
        such program will be required to complete the current award year 
        under the requirements of the Quality Assurance Program.

                      (5) Review and evaluation

        The Secretary shall review and evaluate the Quality Assurance 
    Program conducted by each participating institution and, on the 
    basis of that evaluation, make recommendations regarding amendments 
    to this chapter that will streamline the administration and enhance 
    the integrity of Federal student assistance programs. Such 
    recommendations shall be submitted to the Committee on Labor and 
    Human Resources of the Senate and the Committee on Education and the 
    Workforce of the House of Representatives.

(b) Regulatory improvement and streamlining experiments

                           (1) In general

        The Secretary may continue any experimental sites in existence 
    on October 7, 1998. Any activities approved by the Secretary prior 
    to October 7, 1998, that are inconsistent with this section shall be 
    discontinued not later than June 30, 1999.

                             (2) Report

        The Secretary shall review and evaluate the experience of 
    institutions participating as experimental sites during the period 
    of 1993 through 1998 under this section (as such section was in 
    effect on the day before October 7, 1998), and shall submit a report 
    based on this review and evaluation to the Committee on Labor and 
    Human Resources of the Senate and the Committee on Education and the 
    Workforce of the House of Representatives not later than 6 months 
    after October 7, 1998. Such report shall include--
            (A) a list of participating institutions and the specific 
        statutory or regulatory waivers granted to each institution;
            (B) the findings and conclusions reached regarding each of 
        the experiments conducted; and
            (C) recommendations for amendments to improve and streamline 
        this chapter, based on the results of the experiment.

                            (3) Selection

        (A) In general

            Upon the submission of the report required by paragraph (2), 
        the Secretary is authorized to select a limited number of 
        additional institutions for voluntary participation as 
        experimental sites to provide recommendations to the Secretary 
        on the impact and effectiveness of proposed regulations or new 
        management initiatives.

        (B) Consultation

            Prior to approving any additional experimental sites, the 
        Secretary shall consult with the Committee on Labor and Human 
        Resources of the Senate and the Committee on Education and the 
        Workforce of the House of Representatives and shall provide to 
        such Committees--
                (i) a list of institutions proposed for participation in 
            the experiment and the specific statutory or regulatory 
            waivers proposed to be granted to each institution;
                (ii) a statement of the objectives to be achieved 
            through the experiment; and
                (iii) an identification of the period of time over which 
            the experiment is to be conducted.

        (C) Waivers

            The Secretary is authorized to waive, for any institution 
        participating as an experimental site under subparagraph (A), 
        any requirements in this subchapter and part C of subchapter I 
        of chapter 34 of title 42, or regulations prescribed under this 
        subchapter and part C of subchapter I of chapter 34 of title 42, 
        that will bias the results of the experiment, except that the 
        Secretary shall not waive any provisions with respect to award 
        rules, grant and loan maximum award amounts, and need analysis 
        requirements.

(c) ``Current award year'' defined

    For purposes of this section, the term ``current award year'' means 
the award year during which the participating institution indicates the 
institution's intention to cease participation.

(Pub. L. 89-329, title IV, Sec. 487A, as added Pub. L. 102-325, title 
IV, Sec. 491, July 23, 1992, 106 Stat. 629; amended Pub. L. 105-244, 
title IV, Sec. 490, Oct. 7, 1998, 112 Stat. 1751.)

                       References in Text

    This chapter, referred to in subsecs. (a)(5) and (b)(2)(C), was in 
the original ``this Act'', meaning Pub. L. 89-329, as amended, known as 
the Higher Education Act of 1965. For complete classification of this 
Act to the Code, see Short Title note set out under section 1001 of this 
title and Tables.


                               Amendments

    1998--Pub. L. 105-244 amended section catchline and text generally. 
Prior to amendment, section authorized a Quality Assurance Program for 
institutions to develop and implement systems for verifying student 
financial aid application data.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as 
otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, 
set out as a note under section 1001 of this title.
