108 STAT. 3972 PUBLIC LAW 103-382—OCT. 20, 1994 SEC. 360C. FEDERAL INSURANCE FOR BONDS. Subsection (b) of section 723 of the Higher Education Act of 1965 (20 U.S.C. 1132c-2(b)) is amended— (1) in paragraph (8)— (A) in subparagraph (A), by inserting ", with each eligible institution required to maintain in the escrow account an amount equal to 10 percent of the outstanding principal of all loans made to such institution under this part" before the semicolon; and (B) by amending clause (ii) of subparagraph (B) to read as follows: "(ii) shall be used to return to an eligible institution an amount equal to any remaining portion of such institution's 10 percent deposit of loan proceeds following scheduled repayment of such institution's loan;"; and (2) in paragraph (11), by striking "regulations" and inserting "conditions". SEC. 360D. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION TRAINING FOR INCARCERATED YOUTH OFFENDERS. Title X of the Higher Education Act of 1965 (20 U.S.C. 1135 et seq.) is amended by adding at the end the following new part: " PA RT E —GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION TRAINING FOR INCARCER- ATED YOUTH OFFENDERS 20 USC 113r)g. "SEC. 1091. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION TRAINING FOR INCARCERATED YOUTH OFFENDERS. "(a) FINDINGS.— The Congress finds the following: "(1) Over 150,000 youth offenders age 21 and younger are incarcerated in the Nation's jails, juvenile facilities, and prisons. "(2) Most youth offenders who are incarcerated have been sentenced as first-time adult felons. "(3) Approximately 75 percent of youth offenders are high school dropouts who lack basic literacy and life skills, have little or no job experience, and lack marketable skills. "(4) The average incarcerated youth has attended school only through grade 10. "(5) Most of these youths can be diverted from a life of crime into productive citizenship with available educational, vocational, work skills, and related service programs. "(6) If not involved with educational programs while incarcerated, almost all of these youths will return to a life of crime upon release. "(7) The average length of sentence for a youth offender is about 3 years. Time spent in prison provides a unique opportunity for education and training. "(8) Even with quality education and training provided during incarceration, a period of intense supervision, support, and counseling is needed upon release to ensure effective reintegration of youth offenders into society.