 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part F--General Provisions Relating to Student Assistance Programs
 
Sec. 1098c. Year 2000 requirements at the Department


(a) Preparations for Year 2000

    In order to ensure that the processing, delivery, and administration 
of grant, loan, and work assistance provided under this subchapter and 
part C of subchapter I of chapter 34 of title 42 is not interrupted due 
to operational problems related to the inability of computer systems to 
indicate accurately dates after December 31, 1999, the Secretary of 
Education shall--
        (1) take such actions as are necessary to ensure that all 
    internal and external systems, hardware, and data exchange 
    infrastructure administered by the Department that are necessary for 
    the processing, delivery, and administration of the grant, loan, and 
    work assistance are Year 2000 compliant by March 31, 1999, such that 
    there will be no business interruption after December 31, 1999;
        (2) ensure that the Robert T. Stafford Federal Student Loan 
    Program and the William D. Ford Federal Direct Loan Program are 
    equal in level of priority with respect to addressing, and that 
    resources are managed to equally provide for successful resolution 
    of, the Year 2000 computer problem in both programs by December 31, 
    1999;
        (3) work with the Department's various data exchange partners 
    under this subchapter and part C of subchapter I of chapter 34 of 
    title 42 to fully test all data exchange routes for Year 2000 
    compliance via end-to-end testing, and submit a report describing 
    the parameters and results of such tests to the Comptroller General 
    not later than March 31, 1999;
        (4) ensure that the Inspector General of the Department (or an 
    external, independent entity selected by the Inspector General) 
    performs and publishes a risk assessment of the systems and hardware 
    under the Department's management, that has been reviewed by an 
    independent entity, and make such assessment publicly available not 
    later than 60 days after October 7, 1998;
        (5) not later than June 30, 1999, ensure that the Inspector 
    General (or an external, independent entity selected by the 
    Inspector General) conducts a review of the Department's Year 2000 
    compliance for the processing, delivery, and administration of 
    grant, loan, and work assistance, and submits a report reflecting 
    the results of that review to the Chairperson of the Committee on 
    Labor and Human Resources of the Senate and the Chairperson of the 
    Committee on Education and the Workforce of the House of 
    Representatives;
        (6) develop a contingency plan to ensure the programs under this 
    subchapter and part C of subchapter I of chapter 34 of title 42 will 
    continue to run uninterrupted in the event of widespread disruptions 
    in the flow of accurate computerized data, which contingency plan 
    shall include a prioritization of mission critical systems and 
    strategies to allow data partners to transfer data through alternate 
    means; and
        (7) alert Congress at the earliest possible time if mission 
    critical deadlines will not be met.

(b) Postponement authority for Year 2000

                             (1) Purpose

        It is the purpose of this subsection to provide the Secretary 
    with the flexibility necessary to--
            (A) ensure that the resources and capabilities of 
        institutions, lenders, and guaranty agencies are not 
        overburdened by the combination of student aid processing and 
        delivery requirements added or modified by the amendments made 
        by the Higher Education Amendments of 1998 and by the changes 
        required to ensure that the systems of the institutions, lenders 
        and guaranty agencies are Year 2000 compliant; and
            (B) avoid the disruption of grant, loan, or work assistance 
        funds awarded to students because of Year 2000 compliance 
        problems at a substantial number of institutions, lenders, and 
        guaranty agencies.

                      (2) Authority to postpone

        The Secretary may postpone, for a period of time described in 
    paragraph (3), the implementation of any requirements under part B, 
    C, D, or F of this subchapter that are added or modified by the 
    amendments made by the Higher Education Amendments of 1998 related 
    to the processing or delivery of grant, loan, and work assistance 
    (which shall not include the determination of need for such 
    assistance) provided under this subchapter and part C of subchapter 
    I of chapter 34 of title 42, if the Secretary--
            (A) determines that--
                (i) implementation of such requirements would require 
            extensive changes to the existing systems of institutions, 
            lenders, or guaranty agencies; and
                (ii) postponement is necessary to avoid jeopardizing the 
            ability of a substantial number of institutions, lenders, or 
            guaranty agencies to ensure that all of the systems of the 
            institutions, lenders, or guaranty agencies related to the 
            processing or delivery of such assistance function 
            successfully after December 31, 1999; and

            (B) promptly publishes in the Federal Register a list of, 
        and notifies Congress of, any provisions, the implementation of 
        which the Secretary intends to postpone, with the reasons for 
        such postponement.

                     (3) Exceptions to authority

        The Secretary may not postpone the implementation of one or more 
    provisions described in this subsection longer than the earlier of--
            (A) the period of time that the Secretary determines 
        necessary to ensure that the processing and delivery systems of 
        the institutions, lenders, and guaranty agencies referred to in 
        paragraph (1)(A)(ii) \1\ are capable of functioning successfully 
        after December 31, 1999; or
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    \1\ So in original. Probably should be paragraph ``(2)(A)(ii)''.
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            (B) one award year after the effective date applicable to 
        such provision under the Higher Education Amendments of 1998.

(Pub. L. 89-329, title IV, Sec. 493A, as added Pub. L. 105-244, title 
IV, Sec. 490E, Oct. 7, 1998, 112 Stat. 1756.)

                       References in Text

    The Higher Education Amendments of 1998, referred to in subsec. 
(b)(1)(A), (2), (3)(B), is Pub. L. 105-244, Oct. 7, 1998, 112 Stat. 
1581. For complete classification of this Act to the Code, see Short 
Title of 1998 Amendment note set out under section 1001 of this title 
and Tables.
    For general effective date of the Higher Education Amendments of 
1998, referred to in subsec. (b)(3)(B), see section 3 of Pub. L. 105-
244, set out as an Effective Date of 1998 Amendment note under section 
1001 of this title.


                             Effective Date

    Section effective Oct. 1, 1998, see section 3 of Pub. L. 105-244, 
set out as an Effective Date of 1998 Amendment note under section 1001 
of this title.
