US (United States) Code. Title 20. Chapter 28: Higher education resources and student assistance

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Education

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EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-325 applicable with respect to

determinations of need under this part for award years beginning on

or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set

out as a note under section 1087kk of this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1087oo, 1087pp, 1087qq,

1089 of this title.

-CITE-

20 USC Sec. 1087ss 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part E - Need Analysis

-HEAD-

Sec. 1087ss. Simplified needs test

-STATUTE-

(a) Simplified application section

(1) In general

The Secretary shall develop and use an easily identifiable

simplified application section as part of the common financial

reporting form prescribed under section 1090(a) of this title for

families described in subsections (b) and (c) of this section.

(2) Reduced data requirements

The simplified application form shall -

(A) in the case of a family meeting the requirements of

subsection (b)(1) of this section, permit such family to submit

only the data elements required under subsection (b)(2) of this

section for the purposes of establishing eligibility for

student financial aid under this part; and

(B) in the case of a family meeting the requirements of

subsection (c) of this section, permit such family to be

treated as having an expected family contribution equal to zero

for purposes of establishing such eligibility and to submit

only the data elements required to make a determination under

subsection (c) of this section.

(b) Simplified needs test

(1) Eligibility

An applicant is eligible to file a simplified form containing

the elements required by paragraph (2) if -

(A) in the case of an applicant who is a dependent student -

(i) the student's parents file or are eligible to file a

form described in paragraph (3) or certify that they are not

required to file an income tax return and the student files

or is eligible to file such a form or certifies that the

student is not required to file an income tax return; and

(ii) the total adjusted gross income of the parents

(excluding any income of the dependent student) is less than

$50,000; or

(B) in the case of an applicant who is an independent student

-

(i) the student (and the student's spouse, if any) files or

is eligible to file a form described in paragraph (3) or

certifies that the student (and the student's spouse, if any)

is not required to file an income tax return; and

(ii) the adjusted gross income of the student (and the

student's spouse, if any) is less than $50,000.

(2) Simplified test elements

The six elements to be used for the simplified needs analysis

are -

(A) adjusted gross income,

(B) Federal taxes paid,

(C) untaxed income and benefits,

(D) the number of family members,

(E) the number of family members in postsecondary education,

and

(F) an allowance (A) for State and other taxes, as defined in

section 1087oo(c)(2) of this title for dependent students and

in section 1087qq(b)(2) of this title for independent students

with dependents other than a spouse, or (B) for State and other

income taxes, as defined in section 1087pp(b)(2) of this title

for independent students without dependents other than a

spouse.

(3) Qualifying forms

A student or family files a form described in this subsection,

or subsection (c) of this section, as the case may be, if the

student or family, respectively, files -

(A) a form 1040A or 1040EZ (including any prepared or

electronic version of such form) required pursuant to title 26;

(B) a form 1040 (including any prepared or electronic version

of such form) required pursuant to title 26, except that such

form shall be considered a qualifying form only if the student

or family files such form in order to take a tax credit under

section 25A of title 26, and would otherwise be eligible to

file a form described in subparagraph (A); or

(C) an income tax return (including any prepared or

electronic version of such return) required pursuant to the tax

code of the Commonwealth of Puerto Rico, Guam, American Samoa,

the Virgin Islands, the Republic of the Marshall Islands, the

Federated States of Micronesia, or Palau.

(c) Zero expected family contribution

The Secretary shall consider an applicant to have an expected

family contribution equal to zero if -

(1) in the case of a dependent student -

(A) the student's parents file, or are eligible to file, a

form described in subsection (b)(3) of this section, or certify

that the parents are not required to file an income tax return

and the student files, or is eligible to file, such a form, or

certifies that the student is not required to file an income

tax return; and

(B) the sum of the adjusted gross income of the parents is

less than or equal to the maximum amount of income (rounded

annually to the nearest thousand dollars) that may be earned in

1992 or the current year, whichever is higher, in order to

claim the maximum Federal earned income credit; or

(2) in the case of an independent student with dependents other

than a spouse -

(A) the student (and the student's spouse, if any) files, or

is eligible to file, a form described in subsection (b)(3) of

this section, or certifies that the student (and the student's

spouse, if any) is not required to file an income tax return;

and

(B) the sum of the adjusted gross income of the student and

spouse (if appropriate) is less than or equal to the maximum

amount of income (rounded annually to the nearest thousand

dollars) that may be earned in 1992 or the current year,

whichever is higher, in order to claim the maximum Federal

earned income credit.

An individual is not required to qualify or file for the earned

income credit in order to be eligible under this subsection.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 479, as added Pub. L. 99-498, title

IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1472; amended Pub. L.

100-50, Sec. 14(23)-(25), June 3, 1987, 101 Stat. 352; Pub. L.

100-369, Sec. 7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102-26,

Sec. 11, Apr. 9, 1991, 105 Stat. 129; Pub. L. 102-325, title IV,

Sec. 471(a), July 23, 1992, 106 Stat. 604; Pub. L. 103-208, Sec.

2(g)(10)-(15), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105-244,

title IV, Sec. 477, Oct. 7, 1998, 112 Stat. 1731.)

-MISC1-

AMENDMENTS

1998 - Subsec. (b)(3). Pub. L. 105-244, Sec. 477(1)(A),

substituted ''this subsection, or subsection (c) of this section,

as the case may be,'' for ''this paragraph'' in introductory

provisions.

Subsec. (b)(3)(A). Pub. L. 105-244, Sec. 477(1)(B), struck out

''or'' at end.

Subsec. (b)(3)(B), (C). Pub. L. 105-244, Sec. 477(1)(C), (D),

added subpar. (B) and redesignated former subpar. (B) as (C).

Subsec. (c)(1)(A). Pub. L. 105-244, Sec. 477(2)(A), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: ''the student's parents were not required to file an

income tax return under section 6012(a)(1) of title 26; and''.

Subsec. (c)(2)(A). Pub. L. 105-244, Sec. 477(2)(B), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: ''the student (and the student's spouse, if any) was not

required to file an income tax return under section 6012(a)(1) of

title 26; and''.

1993 - Subsec. (a)(1). Pub. L. 103-208, Sec. 2(g)(10), inserted

''of'' after ''(c)''.

Subsec. (b)(1)(B)(i). Pub. L. 103-208, Sec. 2(g)(11), inserted

''(and the student's spouse, if any)'' after ''student'' in two

places and struck out ''such'' before ''an income tax return''.

Subsec. (b)(2). Pub. L. 103-208, Sec. 2(g)(12), (13), substituted

''six elements'' for ''five elements'' in introductory provisions

and a comma for semicolon in subpar. (E).

Subsec. (b)(3)(A). Pub. L. 103-208, Sec. 2(g)(14)(A), inserted

''(including any prepared or electronic version of such form)''

before ''required''.

Subsec. (b)(3)(B). Pub. L. 103-208, Sec. 2(g)(14)(B), inserted

''(including any prepared or electronic version of such return)''

before ''required''.

Subsec. (c)(1)(A). Pub. L. 103-208, Sec. 2(g)(15)(A), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: ''the student's parents did not file, and were not

required to file, a form 1040 required pursuant to title 26; and''.

Subsec. (c)(1)(B). Pub. L. 103-208, Sec. 2(g)(15)(C), inserted

''in 1992 or the current year, whichever is higher,'' after ''that

may be earned''.

Subsec. (c)(2)(A). Pub. L. 103-208, Sec. 2(g)(15)(B), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: ''the student (and the student's spouse, if any) did not

file, and was not required to file, a form 1040 required pursuant

to title 26; and''.

Subsec. (c)(2)(B). Pub. L. 103-208, Sec. 2(g)(15)(C), inserted

''in 1992 or the current year, whichever is higher,'' after ''that

may be earned''.

1992 - Pub. L. 102-325 amended section generally, substituting

present provisions for provisions which related to: in subsec. (a),

analysis applicable to all title IV programs; in subsec. (b),

elements in tests; and in subsec. (c), simplified application form.

1991 - Subsec. (a). Pub. L. 102-26 inserted before period at end

'', or who file an income tax return pursuant to the tax code of

the Commonwealth of Puerto Rico or who are not required to file

pursuant to that tax code''.

1988 - Subsec. (a). Pub. L. 100-369 substituted ''Internal

Revenue Code of 1986'' for ''Internal Revenue Code of 1954'', which

for purposes of codification was translated as ''title 26'' thus

requiring no change in text.

1987 - Subsec. (a). Pub. L. 100-50, Sec. 14(23), substituted

''subsection (b) of this section'' for ''paragraph (2)'',

''families (1) who'' for ''families which'', and ''and (2) who file

a form 1040A or 1040EZ pursuant to title 26, or are not required to

file pursuant to such title'' for ''and which file a form 1040A

pursuant to title 26''.

Subsec. (b)(2). Pub. L. 100-50, Sec. 14(24)(A), struck out ''and

State'' after ''Federal''.

Subsec. (b)(6). Pub. L. 100-50, Sec. 14(24)(B)-(D), added par.

(6).

Subsec. (c). Pub. L. 100-50, Sec. 14(25), added subsec. (c).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-244 effective Oct. 7, 1998, see section

480A of Pub. L. 105-244, set out as a note under section 1087kk of

this title.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-325 applicable with respect to

determinations of need under this part for award years beginning on

or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set

out as a note under section 1087kk of this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1090 of this title.

-CITE-

20 USC Sec. 1087tt 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part E - Need Analysis

-HEAD-

Sec. 1087tt. Discretion of student financial aid administrators

-STATUTE-

(a) In general

Nothing in this part shall be interpreted as limiting the

authority of the financial aid administrator, on the basis of

adequate documentation, to make adjustments on a case-by-case basis

to the cost of attendance or the values of the data items required

to calculate the expected student or parent contribution (or both)

to allow for treatment of an individual eligible applicant with

special circumstances. However, this authority shall not be

construed to permit aid administrators to deviate from the

contributions expected in the absence of special circumstances.

Special circumstances may include tuition expenses at an elementary

or secondary school, medical or dental expenses not covered by

insurance, unusually high child care costs, recent unemployment of

a family member, the number of parents enrolled at least half-time

in a degree, certificate, or other program leading to a recognized

educational credential at an institution with a program

participation agreement under section 1094 of this title, or other

changes in a family's income, a family's assets, or a student's

status. Special circumstances shall be conditions that

differentiate an individual student from a class of students rather

than conditions that exist across a class of students. Adequate

documentation for such adjustments shall substantiate such special

circumstances of individual students. In addition, nothing in this

subchapter and part C of subchapter I of chapter 34 of title 42

shall be interpreted as limiting the authority of the student

financial aid administrator in such cases to request and use

supplementary information about the financial status or personal

circumstances of eligible applicants in selecting recipients and

determining the amount of awards under this subchapter and part C

of subchapter I of chapter 34 of title 42. No student or parent

shall be charged a fee for collecting, processing, or delivering

such supplementary information.

(b) Adjustments to assets taken into account

A student financial aid administrator shall be considered to be

making a necessary adjustment in accordance with subsection (a) of

this section if -

(1) the administrator makes adjustments excluding from family

income any proceeds of a sale of farm or business assets of a

family if such sale results from a voluntary or involuntary

foreclosure, forfeiture, or bankruptcy or an involuntary

liquidation; or

(2) the administrator makes adjustments in the award level of a

student with a disability so as to take into consideration the

additional costs such student incurs as a result of such

student's disability.

(c) Refusal or adjustment of loan certifications

On a case-by-case basis, an eligible institution may refuse to

certify a statement that permits a student to receive a loan under

part B or C of this subchapter, or may certify a loan amount or

make a loan that is less than the student's determination of need

(as determined under this part), if the reason for the action is

documented and provided in written form to the student. No

eligible institution shall discriminate against any borrower or

applicant in obtaining a loan on the basis of race, national

origin, religion, sex, marital status, age, or disability status.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 479A, as added Pub. L. 100-50, Sec.

14(26), June 3, 1987, 101 Stat. 352; amended Pub. L. 101-239, title

II, Sec. 2009, Dec. 19, 1989, 103 Stat. 2122; Pub. L. 102-325,

title IV, Sec. 471(a), July 23, 1992, 106 Stat. 605; Pub. L.

103-208, Sec. 2(g)(16), Dec. 20, 1993, 107 Stat. 2473; Pub. L.

105-244, title IV, Sec. 478, Oct. 7, 1998, 112 Stat. 1731.)

-MISC1-

PRIOR PROVISIONS

A prior section 1087tt, Pub. L. 89-329, title IV, Sec. 479A, as

added Pub. L. 99-498, title IV, Sec. 406(a), Oct. 17, 1986, 100

Stat. 1472, related to discretion of student financial aid

administrators under this part, prior to repeal by section 14(26)

of Pub. L. 100-50.

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-244, Sec. 478(1), inserted after

second sentence ''Special circumstances may include tuition

expenses at an elementary or secondary school, medical or dental

expenses not covered by insurance, unusually high child care costs,

recent unemployment of a family member, the number of parents

enrolled at least half-time in a degree, certificate, or other

program leading to a recognized educational credential at an

institution with a program participation agreement under section

1094 of this title, or other changes in a family's income, a

family's assets, or a student's status.''

Subsec. (c). Pub. L. 105-244, Sec. 478(2), amended heading and

text of subsec. (c) generally. Prior to amendment, subsec. (c)

related to student financial aid administrators making adjustments

for special circumstances.

1993 - Subsec. (c). Pub. L. 103-208 added subsec. (c).

1992 - Pub. L. 102-325 amended section generally, revising and

restating provisions of subsecs. (a) and (b) and striking out

former subsec. (c) which related to asset adjustment as example.

1989 - Subsec. (a). Pub. L. 101-239 amended subsec. (a)

generally. Prior to amendment, subsec. (a) read as follows:

''Nothing in this subchapter and part C of subchapter I of chapter

34 of title 42 shall be interpreted as limiting the authority of

the student financial aid administrator, on the basis of adequate

documentation, to make necessary adjustments to the cost of

attendance and expected student or parent contribution (or both) to

allow for treatment of individual students with special

circumstances. In addition, nothing in this subchapter and part C

of subchapter I of chapter 34 of title 42 shall be interpreted as

limiting the authority of the student financial aid administrator

to use supplementary information about the financial status or

personal circumstance of eligible applicants in selecting

recipients and determining the amount of awards under subparts 1

and 2 of part A and parts B and D of this subchapter and part C of

subchapter I of chapter 34 of title 42.''

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-244 effective Oct. 7, 1998, see section

480A of Pub. L. 105-244, set out as a note under section 1087kk of

this title.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-325 applicable with respect to

determinations of need under this part for award years beginning on

or after July 1, 1993, see section 471(a) of Pub. L. 102-325, set

out as a note under section 1087kk of this title.

EFFECTIVE DATE

Section effective as if enacted as part of the Higher Education

Amendments of 1986, Pub. L. 99-498, see section 27 of Pub. L.

100-50, set out as an Effective Date of 1987 Amendment note under

section 1001 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1091 of this title.

-CITE-

20 USC Sec. 1087uu 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part E - Need Analysis

-HEAD-

Sec. 1087uu. Disregard of student aid in other Federal programs

-STATUTE-

Notwithstanding any other provision of law, student financial

assistance received under this subchapter and part C of subchapter

I of chapter 34 of title 42, or under Bureau of Indian Affairs

student assistance programs, shall not be taken into account in

determining the need or eligibility of any person for benefits or

assistance, or the amount of such benefits or assistance, under any

Federal, State, or local program financed in whole or in part with

Federal funds.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 479B, as added Pub. L. 100-50, Sec.

14(27), June 3, 1987, 101 Stat. 353; amended Pub. L. 102-325, title

IV, Sec. 471(a), July 23, 1992, 106 Stat. 606.)

-MISC1-

PRIOR PROVISIONS

A prior section 1087uu, Pub. L. 89-329, title IV, Sec. 479B, as

added Pub. L. 99-498, title IV, Sec. 406(a), Oct. 17, 1986, 100

Stat. 1472, related to exclusion of student financial assistance

for attendance costs in determining student eligibility for

assistance under any other program funded in whole or part with

Federal funds, prior to repeal by section 14(27) of Pub. L. 100-50.

AMENDMENTS

1992 - Pub. L. 102-325 amended section generally, revising and

restating as a single paragraph provisions formerly contained in

subsec. (a) which proscribed consideration of aid for attendance

costs as income or resources, and in subsec. (b) which delineated

elements of attendance costs.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-325 applicable with respect to

determinations of need under this part for award years beginning on

or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set

out as a note under section 1087kk of this title.

EFFECTIVE DATE

Section effective as if enacted as part of the Higher Education

Amendments of 1986, Pub. L. 99-498, see section 27 of Pub. L.

100-50, set out as an Effective Date of 1987 Amendment note under

section 1001 of this title.

Section applicable with respect to financial assistance provided

for any academic year beginning after Oct. 17, 1986, see section

406(b)(4) of Pub. L. 99-498, as amended, set out as a note under

section 1087kk of this title.

-CITE-

20 USC Sec. 1087uu-1 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part E - Need Analysis

-HEAD-

Sec. 1087uu-1. Native American students

-STATUTE-

In determining family contributions for Native American students,

computations performed pursuant to this part shall exclude -

(1) any income and assets of $2,000 or less per individual

payment received by the student (and spouse) and student's

parents under the Per Capita Act or the Distribution of Judgment

Funds Act (25 U.S.C. 1401 et seq.); and

(2) any income received by the student (and spouse) and

student's parents under the Alaskan Native Claims Settlement Act

(43 U.S.C. 1601 et seq.) or the Maine Indian Claims Settlement

Act (25 U.S.C. 1721 et seq.).

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 479C, as added Pub. L. 100-50, Sec.

14(27), June 3, 1987, 101 Stat. 353; amended Pub. L. 102-325, title

IV, Sec. 471(a), July 23, 1992, 106 Stat. 606.)

-REFTEXT-

REFERENCES IN TEXT

The Per Capita Act, referred to in par. (1), probably means Pub.

L. 98-64, Aug. 2, 1983, 97 Stat. 365, which enacted sections 117a

to 117c of Title 25, Indians, and repealed section 117 of Title 25.

For complete classification of this Act to the Code, see Tables.

The Distribution of Judgment Funds Act, referred to in par. (1),

is Pub. L. 93-134, Oct. 19, 1973, 87 Stat. 466, as amended, also

known as the Indian Tribal Judgment Funds Use or Distribution Act,

which is classified generally to chapter 16 (Sec. 1401 et seq.) of

Title 25. For complete classification of this Act to the Code, see

Tables.

The Alaskan Native Claims Settlement Act, referred to in par.

(2), probably means the Alaska Native Claims Settlement Act, Pub.

L. 92-203, Dec. 18, 1971, 85 Stat. 688, as amended, which is

classified generally to chapter 33 (Sec. 1601 et seq.) of Title 43,

Public Lands. For complete classification of this Act to the Code,

see Short Title note set out under section 1601 of Title 43 and

Tables.

The Maine Indian Claims Settlement Act, referred to in par. (2),

probably means the Maine Indian Claims Settlement Act of 1980, Pub.

L. 96-420, Oct. 10, 1980, 94 Stat. 1785, which is classified

generally to subchapter II (Sec. 1721 et seq.) of chapter 19 of

Title 25, Indians. For complete classification of this Act to the

Code, see Short Title note set out under section 1721 of Title 25

and Tables.

-MISC2-

AMENDMENTS

1992 - Pub. L. 102-325 amended section generally, reenacting

provisions without change.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-325 applicable with respect to

determinations of need under this part for award years beginning on

or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set

out as a note under section 1087kk of this title.

EFFECTIVE DATE

Section effective as if enacted as part of the Higher Education

Amendments of 1986, Pub. L. 99-498, see section 27 of Pub. L.

100-50, set out as an Effective Date of 1987 Amendment note under

section 1001 of this title.

-CITE-

20 USC Sec. 1087vv 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part E - Need Analysis

-HEAD-

Sec. 1087vv. Definitions

-STATUTE-

As used in this part:

(a) Total income

(1) Except as provided in paragraph (2), the term ''total

income'' is equal to adjusted gross income plus untaxed income and

benefits for the preceding tax year minus excludable income (as

defined in subsection (e) of this section).

(2) No portion of any student financial assistance received from

any program by an individual, no portion of a national service

educational award or post-service benefit received by an individual

under title I of the National and Community Service Act of 1990 (42

U.S.C. 12511 et seq.), and no portion of any tax credit taken under

section 25A of title 26, shall be included as income or assets in

the computation of expected family contribution for any program

funded in whole or in part under this chapter.

(b) Untaxed income and benefits

The term ''untaxed income and benefits'' means -

(1) child support received;

(2) welfare benefits, including assistance under a State

program funded under part A of title IV of the Social Security

Act (42 U.S.C. 601 et seq.) and aid to dependent children;

(3) workman's compensation;

(4) veterans' benefits such as death pension, dependency, and

indemnity compensation, but excluding veterans' education

benefits as defined in subsection (c) of this section;

(5) interest on tax-free bonds;

(6) housing, food, and other allowances (excluding rent

subsidies for low-income housing) for military, clergy, and

others (including cash payments and cash value of benefits);

(7) cash support or any money paid on the student's behalf,

except, for dependent students, funds provided by the student's

parents;

(8) the amount of earned income credit claimed for Federal

income tax purposes;

(9) untaxed portion of pensions;

(10) credit for Federal tax on special fuels;

(11) the amount of foreign income excluded for purposes of

Federal income taxes;

(12) untaxed social security benefits;

(13) payments to individual retirement accounts and Keogh

accounts excluded from income for Federal income tax purposes;

and

(14) any other untaxed income and benefits, such as Black Lung

Benefits, Refugee Assistance, railroad retirement benefits, or

benefits received through participation in employment and

training activities under title I of the Workforce Investment Act

of 1998 (29 U.S.C. 2801 et seq.).

(c) Veteran and veterans' education benefits

(1) The term ''veteran'' means any individual who -

(A) has engaged in the active duty in the United States Army,

Navy, Air Force, Marines, or Coast Guard; and

(B) was released under a condition other than dishonorable.

(2) The term ''veterans' education benefits'' means veterans'

benefits the student will receive during the award year, including

but not limited to the following:

(A) Title 10, chapter 2: Reserve Officer Training Corps

scholarship.

(B) Title 10, chapter 106: Selective Reserve.

(C) Title 10, chapter 107: Selective Reserve Educational

Assistance Program.

(D) Title 37, chapter 2: Reserve Officer Training Corps

Program.

(E) Title 38, chapter 30: Montgomery GI Bill - active duty.

(F) Title 38, chapter 31: vocational rehabilitation.

(G) Title 38, chapter 32: Post-Vietnam Era Veterans'

Educational Assistance Program.

(H) Title 38, chapter 35: Dependents Educational Assistance

Program.

(I) Public Law 97-376, section 156: Restored Entitlement

Program for Survivors (or Quayle benefits).

(J) Public Law 96-342, section 903: Educational Assistance

Pilot Program.

(d) Independent student

The term ''independent'', when used with respect to a student,

means any individual who -

(1) is 24 years of age or older by December 31 of the award

year;

(2) is an orphan or ward of the court or was a ward of the

court until the individual reached the age of 18;

(3) is a veteran of the Armed Forces of the United States (as

defined in subsection (c)(1) of this section);

(4) is a graduate or professional student;

(5) is a married individual;

(6) has legal dependents other than a spouse; or

(7) is a student for whom a financial aid administrator makes a

documented determination of independence by reason of other

unusual circumstances.

(e) Excludable income

The term ''excludable income'' means -

(1) any student financial assistance awarded based on need as

determined in accordance with the provisions of this part,

including any income earned from work under part C of subchapter

I of chapter 34 of title 42;

(2) any living allowance received by a participant in a program

established under the National and Community Service Act of 1990

(42 U.S.C. 12501 et seq.);

(3) child support payments made by the student or parent; and

(4) payments made and services provided under part E of title

IV of the Social Security Act (42 U.S.C. 670 et seq.).

(f) Assets

(1) The term ''assets'' means cash on hand, including the amount

in checking and savings accounts, time deposits, money market

funds, trusts, stocks, bonds, other securities, mutual funds, tax

shelters, and the net value of real estate, income producing

property, and business and farm assets.

(2) With respect to determinations of need under this subchapter

and part C of subchapter I of chapter 34 of title 42, other than

for subpart 4 of part A of this subchapter, the term ''assets''

shall not include the net value of -

(A) the family's principal place of residence; or

(B) a family farm on which the family resides.

(g) Net assets

The term ''net assets'' means the current market value at the

time of application of the assets (as defined in subsection (f) of

this section), minus the outstanding liabilities or indebtedness

against the assets.

(h) Treatment of income taxes paid to other jurisdictions

(1) The tax on income paid to the Governments of the Commonwealth

of Puerto Rico, Guam, American Samoa, the Virgin Islands, or the

Commonwealth of the Northern Mariana Islands, the Republic of the

Marshall Islands, the Federated States of Micronesia, or Palau

under the laws applicable to those jurisdictions, or the comparable

tax paid to the central government of a foreign country, shall be

treated as Federal income taxes.

(2) References in this part to title 26, Federal income tax

forms, and the Internal Revenue Service shall, for purposes of the

tax described in paragraph (1), be treated as references to the

corresponding laws, tax forms, and tax collection agencies of those

jurisdictions, respectively, subject to such adjustments as the

Secretary may provide by regulation.

(i) Current balance

The term ''current balance of checking and savings accounts''

does not include any funds over which an individual is barred from

exercising discretion and control because of the actions of any

State in declaring a bank emergency due to the insolvency of a

private deposit insurance fund.

(j) Other financial assistance; tuition prepayment plans

(1) For purposes of determining a student's eligibility for funds

under this subchapter and part C of subchapter I of chapter 34 of

title 42, estimated financial assistance not received under this

subchapter and part C of subchapter I of chapter 34 of title 42

shall include all scholarships, grants, loans, or other assistance

known to the institution at the time the determination of the

student's need is made, including veterans' education benefits as

defined in subsection (c) of this section, and national service

educational awards or post-service benefits under title I of the

National and Community Service Act of 1990 (42 U.S.C. 12511 et

seq.).

(2)(A) Except as provided in subparagraph (B), for purposes of

determining a student's eligibility for funds under this subchapter

and part C of subchapter I of chapter 34 of title 42, tuition

prepayment plans shall reduce the cost of attendance (as determined

under section 1087ll of this title) by the amount of the

prepayment, and shall not be considered estimated financial

assistance.

(B) If the institutional expense covered by the prepayment must

be part of the student's cost of attendance for accounting

purposes, the prepayment shall be considered estimated financial

assistance.

(3) Notwithstanding paragraph (1), a tax credit taken under

section 25A of title 26 shall not be treated as estimated financial

assistance for purposes of section 1087kk(3) of this title.

(k) Dependents

(1) Except as otherwise provided, the term ''dependent of the

parent'' means the student, dependent children of the student's

parents, including those children who are deemed to be dependent

students when applying for aid under this subchapter and part C of

subchapter I of chapter 34 of title 42, and other persons who live

with and receive more than one-half of their support from the

parent and will continue to receive more than half of their support

from the parent during the award year.

(2) Except as otherwise provided, the term ''dependent of the

student'' means the student's dependent children and other persons

(except the student's spouse) who live with and receive more than

one-half of their support from the student and will continue to

receive more than half of their support from the student during the

award year.

(l) Family size

(1) In determining family size in the case of a dependent student

-

(A) if the parents are not divorced or separated, family

members include the student's parents, and the dependents of the

student's parents including the student;

(B) if the parents are divorced or separated, family members

include the parent whose income is included in computing

available income and that parent's dependents, including the

student; and

(C) if the parents are divorced and the parent whose income is

so included is remarried, or if the parent was a widow or widower

who has remarried, family members also include, in addition to

those individuals referred to in subparagraph (B), the new spouse

and any dependents of the new spouse if that spouse's income is

included in determining the parents' adjusted available income.

(2) In determining family size in the case of an independent

student -

(A) family members include the student, the student's spouse,

and the dependents of the student; and

(B) if the student is divorced or separated, family members do

not include the spouse (or ex-spouse), but do include the student

and the student's dependents.

(m) Business assets

The term ''business assets'' means property that is used in the

operation of a trade or business, including real estate,

inventories, buildings, machinery, and other equipment, patents,

franchise rights, and copyrights.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 480, as added Pub. L. 99-498, title

IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1472; amended Pub. L.

100-50, Sec. 14(28), June 3, 1987, 101 Stat. 353; Pub. L. 100-369,

Sec. 7(b), July 18, 1988, 102 Stat. 837; Pub. L. 101-610, title I,

Sec. 185(3), (4), Nov. 16, 1990, 104 Stat. 3168; Pub. L. 102-325,

title IV, Sec. 471(a), July 23, 1992, 106 Stat. 606; Pub. L.

103-82, title I, Sec. 102(c)(4), (5), Sept. 21, 1993, 107 Stat.

824; Pub. L. 103-208, Sec. 2(g)(17)-(20), Dec. 20, 1993, 107 Stat.

2474; Pub. L. 104-193, title I, Sec. 110(h)(2), Aug. 22, 1996, 110

Stat. 2172; Pub. L. 105-78, title VI, Sec. 609(j), (k), Nov. 13,

1997, 111 Stat. 1524; Pub. L. 105-244, title IV, Sec. 479, Oct. 7,

1998, 112 Stat. 1732; Pub. L. 105-277, div. A, Sec. 101(f) (title

VIII, Sec. 405(d)(15)(B), (f)(12)(B)), Oct. 21, 1998, 112 Stat.

2681-337, 2681-421, 2681-431.)

-REFTEXT-

REFERENCES IN TEXT

The National and Community Service Act of 1990, referred to in

subsecs. (a)(2), (e)(2), and (j)(1), is Pub. L. 101-610, Nov. 16,

1990, 104 Stat. 3127, as amended, which is classified principally

to chapter 129 (Sec. 12501 et seq.) of Title 42, The Public Health

and Welfare. Title I of the Act enacted subchapter I (Sec. 12511 et

seq.) of chapter 129 of Title 42 and amended sections 1070a-6 and

1087vv of this title. For complete classification of this Act to

the Code, see Short Title note set out under section 12501 of Title

42 and Tables.

This chapter, referred to in subsec. (a)(2), 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.

The Social Security Act, referred to in subsecs. (b)(2) and

(e)(4), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended.

Parts A and E of title IV of the Act are classified generally to

parts A (Sec. 601 et seq.) and E (Sec. 670 et seq.) of subchapter

IV of chapter 7 of Title 42, The Public Health and Welfare. For

complete classification of this Act to the Code, see section 1305

of Title 42 and Tables.

The Workforce Investment Act of 1998, referred to in subsec.

(b)(14), is Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, as

amended. Title I of the Act is classified principally to chapter

30 (Sec. 2801 et seq.) of Title 29, Labor. For complete

classification of this Act to the Code, see Short Title note set

out under section 9201 of this title and Tables.

Title 10, chapter 2, referred to in subsec. (c)(2)(A), relates to

the organization of the Department of Defense. For provisions

relating to the Reserve Officer Training Corps, see chapters 102

and 103 of Title 10, Armed Forces.

Title 10, chapter 107, referred to in subsec. (c)(2)(C), relates

to educational assistance for active duty enlistees. For

provisions relating to the Selective Reserve educational assistance

program, see chapter 106 of Title 10.

Title 37, chapter 2, referred to in subsec. (c)(2)(D), has never

been enacted. For provisions relating to the Reserve Officer

Training Corps, see chapters 102 and 103 of Title 10.

Public Law 97-376, section 156, referred to in subsec. (c)(2)(I),

probably means Pub. L. 97-377, title I, Sec. 156, Dec. 21, 1982, 96

Stat. 1920, as amended, which is set out as a note under section

402 of Title 42, The Public Health and Welfare. Pub. L. 97-376 does

not contain a section 156.

Public Law 96-342, section 903, referred to in subsec. (c)(2)(J),

is set out as a note under section 2141 of Title 10, Armed Forces.

-COD-

CODIFICATION

Amendment by section 2(g)(19) of Pub. L. 103-208 (which was

effective as if included in Pub. L. 102-325) was executed to this

section as amended by Pub. L. 102-325 and Pub. L. 103-82, to

reflect the probable intent of Congress.

-MISC3-

AMENDMENTS

1998 - Subsec. (b)(14). Pub. L. 105-277, Sec. 101(f) (title VIII,

Sec. 405(f)(12)(B)), struck out ''Job Training Partnership Act

noneducational benefits or'' after ''railroad retirement benefits,

or''.

Pub. L. 105-277, Sec. 101(f) (title VIII, Sec. 405(d)(15)(B)),

substituted ''Job Training Partnership Act noneducational benefits

or benefits received through participation in employment and

training activities under title I of the Workforce Investment Act

of 1998'' for ''Job Training Partnership Act noneducational

benefits''.

Subsec. (j)(1). Pub. L. 105-244, Sec. 479(1), inserted before

period at end '', and national service educational awards or

post-service benefits under title I of the National and Community

Service Act of 1990''.

Subsec. (j)(3), (4). Pub. L. 105-244, Sec. 479(2), (3),

redesignated par. (4) as (3) and struck out former par. (3) which

read as follows: ''Notwithstanding paragraph (1), a national

service educational award or post-service benefit under title I of

the National and Community Service Act of 1990 shall not be treated

as financial assistance for purposes of section 1087kk(3) of this

title.''

1997 - Subsec. (a)(2). Pub. L. 105-78, Sec. 609(j), substituted

''program by an individual, no'' for ''program by an individual,

and no'' and inserted ''and no portion of any tax credit taken

under section 25A of title 26,'' before ''shall be included''.

Subsec. (j)(4). Pub. L. 105-78, Sec. 609(k), added par. (4).

1996 - Subsec. (b)(2). Pub. L. 104-193 substituted ''assistance

under a State program funded'' for ''aid to families with dependent

children under a State plan approved''.

1993 - Subsec. (a)(2). Pub. L. 103-82, Sec. 102(c)(4), inserted

'', and no portion of a national service educational award or

post-service benefit received by an individual under title I of the

National and Community Service Act of 1990,'' after ''by an

individual''.

Subsec. (c)(2). Pub. L. 103-208, Sec. 2(g)(17), made technical

amendment to references to titles of the United States Code in

subpars. (A) to (H).

Subsec. (d)(2). Pub. L. 103-208, Sec. 2(g)(18), inserted before

semicolon ''or was a ward of the court until the individual reached

the age of 18''.

Subsec. (j)(3). Pub. L. 103-208, Sec. 2(g)(19), realigned

margin. See Codification note above.

Pub. L. 103-82, Sec. 102(c)(5), added par. (3).

Subsecs. (k) to (m). Pub. L. 103-208, Sec. 2(g)(20), added

subsecs. (k) to (m).

1992 - Pub. L. 102-325 amended section generally, substituting

subsecs. (a) to (j) for former subsecs. (a) to (i).

1990 - Subsec. (d)(2)(F). Pub. L. 101-610, Sec. 185(4), inserted

''and living allowances as a result of participation in a program

established under the National and Community Service Act of 1990)''

after ''other than parents''.

Subsec. (f)(3). Pub. L. 101-610, Sec. 185(3), added par. (3).

1988 - Subsec. (i). Pub. L. 100-369 added subsec. (i).

1987 - Subsec. (a)(1). Pub. L. 100-50, Sec. 14(28)(A), (B),

substituted ''paragraphs (2) through (4)'' for ''paragraphs (2) and

(3)'' and inserted ''minus excludable income (as defined in

subsection (f) of this section)'' before period at end.

Subsec. (a)(2). Pub. L. 100-50, Sec. 14(28)(C), added par. (2)

and struck out former par. (2) which read as follows: ''The

Secretary shall promulgate special regulations to permit, in the

computation of family contributions for the programs under subpart

2 of part A and parts B and D of this subchapter and part C of

subchapter I of chapter 34 of title 42 for any academic year the

exclusion from family income of any proceeds of a sale of farm or

business assets of that family if such sale results from a

voluntary or involuntary foreclosure, forfeiture, liquidation, or

bankruptcy.''

Subsec. (a)(4). Pub. L. 100-50, Sec. 14(28)(D), added par. (4).

Subsecs. (b), (c). Pub. L. 100-50, Sec. 14(28)(E), substituted

subsec. (b) consisting of pars. (1) to (14) for former subsec. (b)

consisting of pars. (1) to (19), and substituted subsec. (c)

consisting of pars. (1) to (14) for former subsec. (c) consisting

of pars. (1) to (16).

Subsec. (d)(2)(F). Pub. L. 100-50, Sec. 14(28)(F), substituted

''annual total resources (including all sources of resources other

than parents)'' for ''an annual total income''.

Subsecs. (f) to (h). Pub. L. 100-50, Sec. 14(28)(G), added

subsecs. (f) to (h).

EFFECTIVE DATE OF 1998 AMENDMENTS

Amendment by Pub. L. 105-244 effective Oct. 7, 1998, see section

480A of Pub. L. 105-244, set out as a note under section 1087kk of

this title.

Amendment by section 101(f) (title VIII, Sec. 405(d)(15)(B)) of

Pub. L. 105-277 effective Oct. 21, 1998, and amendment by section

101(f) (title VIII, Sec. 405(f)(12)(B)) of Pub. L. 105-277

effective July 1, 2000, see section 101(f) (title VIII, Sec.

405(g)(1), (2)(B)) of Pub. L. 105-277, set out as a note under

section 3502 of Title 5, Government Organization and Employees.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-193 effective July 1, 1997, with

transition rules relating to State options to accelerate such date,

rules relating to claims, actions, and proceedings commenced before

such date, rules relating to closing out of accounts for terminated

or substantially modified programs and continuance in office of

Assistant Secretary for Family Support, and provisions relating to

termination of entitlement under AFDC program, see section 116 of

Pub. L. 104-193, as amended, set out as an Effective Date note

under section 601 of Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1993 AMENDMENTS

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

Amendment by Pub. L. 103-82 effective Oct. 1, 1993, see section

123 of Pub. L. 103-82, set out as a note under section 1701 of

Title 16, Conservation.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-325 applicable with respect to

determinations of need under this part for award years beginning on

or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set

out as a note under section 1087kk of this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

-CROSS-

DEFINITION OF ''INDEPENDENT STUDENT''; APPLICATION TO SPECIFIED

PERIODS OF ENROLLMENT

Section 406(b)(5), formerly section 406(b)(4), of Pub. L. 99-498,

renumbered Pub. L. 100-50, Sec. 22(e)(2), June 3, 1987, 101 Stat.

361, provided that: ''The definition of independent student

contained in section 480(d) of the Act (20 U.S.C. 1087vv(d)) as

amended by subsection (a) of this section shall apply with respect

to the determination of such need for periods of enrollment

beginning on or after January 1, 1987, in the case of programs

operated under part B of title IV of the Act (part B of this

subchapter), or for periods of enrollment beginning on or after

July 1, 1987, in the case of programs operated under subpart 2 of

part A and parts C and E of such title (subpart 2 of part A of this

subchapter and part C of subchapter I of chapter 34 of Title 42,

The Public Health and Welfare, and part D of this subchapter).''

(References to subpart 2 of part A of title IV of Pub. L. 89-329

deemed, after July 23, 1992, to refer to subpart 3 of such part,

see section 402(b) of Pub. L. 102-325, set out as a note under

section 1070a-11 of this title.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070a-11, 1078, 1087kk,

1087oo, 1087pp, 1087qq of this title; title 42 sections 12604,

12651d.

-CITE-

20 USC Part F - General Provisions Relating to Student

Assistance Programs 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

.

-HEAD-

Part F - General Provisions Relating to Student Assistance Programs

-COD-

CODIFICATION

This part was originally added as part E of title IV of Pub. L.

89-329 by Pub. L. 90-575, title I, Sec. 151, Oct. 16, 1968, 82

Stat. 1032, and subsequently redesignated part F of said title IV

by Pub. L. 92-318, title I, Sec. 137(b), June 23, 1972, 86 Stat.

273, and then part G of said title IV by Pub. L. 99-498, title IV,

Sec. 406(a), Oct. 17, 1986, 100 Stat. 1454. For codification

purposes, the letter designation of this part was originally

changed from ''E'' to ''D.'' It was subsequently rechanged to ''E''

when this part was redesignated ''F'', and then to ''F'' when this

part was redesignated ''G''. See Codification notes preceding

sections 1087a and 1087aa of this title.

Part G of title IV of the Higher Education Act of 1965,

comprising this part which was editorially designated as part F of

this subchapter, see Codification note above, was originally

enacted by Pub. L. 89-329, title IV, Sec. 461 to 464 and 469, as

added by Pub. L. 90-575, title I, Sec. 151, 152, Oct. 16, 1968, 82

Stat. 1032, 1033; amended Pub. L. 91-230, Apr. 13, 1970, 84 Stat.

121; Pub. L. 92-318, June 23, 1972, 86 Stat. 235; Pub. L. 94-482,

Oct. 12, 1976, 90 Stat. 2081; Pub. L. 95-43, June 15, 1977, 91

Stat. 213; Pub. L. 95-180, Nov. 15, 1977, 91 Stat. 1372; Pub. L.

95-566, Nov. 1, 1978, 92 Stat. 2402; S. Res. 30, Mar. 7, 1979; Pub.

L. 96-49, Aug. 13, 1979, 93 Stat. 351; Pub. L. 96-374, Oct. 3,

1980, 94 Stat. 1367; Pub. L. 97-35, Aug. 13, 1981, 95 Stat. 357;

Pub. L. 98-79, Aug. 15, 1983, 97 Stat. 476; Pub. L. 99-272, Apr. 7,

1986, 100 Stat. 82. Such part is shown herein, however, as having

been added by Pub. L. 99-498, title IV, Sec. 407(a), Oct. 17, 1986,

100 Stat. 1475, without reference to such intervening amendments

because of the extensive revision of the part's provisions by Pub.

L. 99-498.

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in section 1098c of this title.

-CITE-

20 USC Sec. 1088 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1088. Definitions

-STATUTE-

(a) Academic and award year

(1) For the purpose of any program under this subchapter and part

C of subchapter I of chapter 34 of title 42, the term ''award

year'' shall be defined as the period beginning July 1 and ending

June 30 of the following year.

(2) For the purpose of any program under this subchapter and part

C of subchapter I of chapter 34 of title 42, the term ''academic

year'' shall require a minimum of 30 weeks of instructional time,

and, with respect to an undergraduate course of study, shall

require that during such minimum period of instructional time a

full-time student is expected to complete at least 24 semester or

trimester hours or 36 quarter hours at an institution that measures

program length in credit hours, or at least 900 clock hours at an

institution that measures program length in clock hours. The

Secretary may reduce such minimum of 30 weeks to not less than 26

weeks for good cause, as determined by the Secretary on a

case-by-case basis, in the case of an institution of higher

education that provides a 2-year or 4-year program of instruction

for which the institution awards an associate or baccalaureate

degree.

(b) Eligible program

(1) For purposes of this subchapter and part C of subchapter I of

chapter 34 of title 42, the term ''eligible program'' means a

program of at least -

(A) 600 clock hours of instruction, 16 semester hours, or 24

quarter hours, offered during a minimum of 15 weeks, in the case

of a program that -

(i) provides a program of training to prepare students for

gainful employment in a recognized profession; and

(ii) admits students who have not completed the equivalent of

an associate degree; or

(B) 300 clock hours of instruction, 8 semester hours, or 12

hours, offered during a minimum of 10 weeks, in the case of -

(i) an undergraduate program that requires the equivalent of

an associate degree for admissions; or

(ii) a graduate or professional program.

(2)(A) A program is an eligible program for purposes of part B of

this subchapter if it is a program of at least 300 clock hours of

instruction, but less than 600 clock hours of instruction, offered

during a minimum of 10 weeks, that -

(i) has a verified completion rate of at least 70 percent, as

determined in accordance with the regulations of the Secretary;

(ii) has a verified placement rate of at least 70 percent, as

determined in accordance with the regulations of the Secretary;

and

(iii) satisfies such further criteria as the Secretary may

prescribe by regulation.

(B) In the case of a program being determined eligible for the

first time under this paragraph, such determination shall be made

by the Secretary before such program is considered to have

satisfied the requirements of this paragraph.

(c) Third party servicer

For purposes of this subchapter and part C of subchapter I of

chapter 34 of title 42, the term ''third party servicer'' means any

individual, or any State, or private, profit or nonprofit

organization which enters into a contract with -

(1) any eligible institution of higher education to administer,

through either manual or automated processing, any aspect of such

institution's student assistance programs under this subchapter

and part C of subchapter I of chapter 34 of title 42; or

(2) any guaranty agency, or any eligible lender, to administer,

through either manual or automated processing, any aspect of such

guaranty agency's or lender's student loan programs under part B

of this subchapter, including originating, guaranteeing,

monitoring, processing, servicing, or collecting loans.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 481, as added Pub. L. 99-498, title

IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1476; amended Pub. L.

100-50, Sec. 15(1), June 3, 1987, 101 Stat. 355; Pub. L. 101-239,

title II, Sec. 2007(b), (c), Dec. 19, 1989, 103 Stat. 2120, 2121;

Pub. L. 101-508, title III, Sec. 3005(b), Nov. 5, 1990, 104 Stat.

1388-28; Pub. L. 102-26, Sec. 2(a)(2), (3), (d)(2)(A), Apr. 9,

1991, 105 Stat. 123, 124; Pub. L. 102-325, title IV, Sec. 481, July

23, 1992, 106 Stat. 609; Pub. L. 103-208, Sec. 2(h)(1)-(6), Dec.

20, 1993, 107 Stat. 2475, 2476; Pub. L. 105-216, Sec. 12, July 29,

1998, 112 Stat. 908; Pub. L. 105-244, title I, Sec. 101(c), Oct. 7,

1998, 112 Stat. 1617.)

-MISC1-

PRIOR PROVISIONS

A prior section 1088, Pub. L. 89-329, title IV, Sec. 481, as

added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.

1443, defined ''institution of higher education'' for this

subchapter and part C of subchapter I of chapter 34 of Title 42,

The Public Health and Welfare, prior to the general amendment of

this part by Pub. L. 99-498.

Another prior section 1088, Pub. L. 89-329, title IV, Sec. 491,

formerly Sec. 461, as added Pub. L. 90-575, title I, Sec. 151, Oct.

16, 1968, 82 Stat. 1032, renumbered Sec. 491 and amended Pub. L.

92-318, title I, Sec. 131(c), 137(b), title X, Sec. 1001(c)(3),

June 23, 1972, 86 Stat. 259, 272, 381; amended Pub. L. 95-180, Sec.

1(b), Nov. 15, 1977, 91 Stat. 1372; Pub. L. 95-566, Sec. 6, Nov. 1,

1978, 92 Stat. 2403; Pub. L. 96-49, Sec. 5(e), Aug. 13, 1979, 93

Stat. 352, defined terms for this subchapter and part C of

subchapter I of chapter 34 of title 42, prior to the general

revision of this part by Pub. L. 96-374.

AMENDMENTS

1998 - Pub. L. 105-244 redesignated subsecs. (d) to (f) as (a) to

(c), respectively, and struck out former subsecs. (a) to (c) which

defined the terms ''institution of higher education'',

''proprietary institution of higher education'', and

''postsecondary vocational institution''. See section 1002 of this

title.

Subsec. (a)(4). Pub. L. 105-216, which directed the amendment of

par. (4), effective 1 year after July 29, 1998, by designating

existing provisions as subpar. (A), redesignating former subpars.

(A) and (B) as cls. (i) and (ii), respectively, of subpar. (A), and

by adding subpar. (B) to read as follows: ''Subparagraph (A)(i)

shall not apply to a nonprofit institution whose primary function

is to provide health care educational services (or an affiliate of

such an institution that has the power, by contract or ownership

interest, to direct or cause the direction of the institution's

management or policies) that files for bankruptcy under chapter 11

of title 11 between July 1, and December 31, 1998.'', could not be

executed because subsec. (a) did not contain a par. (4) subsequent

to amendment by Pub. L. 105-244. See above.

1993 - Subsec. (a)(3)(B). Pub. L. 103-208, Sec. 2(h)(1), inserted

before semicolon at end '', except that the Secretary, at the

request of such institution, may waive the applicability of this

subparagraph to such institution for good cause, as determined by

the Secretary in the case of an institution of higher education

that provides a 2-year or 4-year program of instruction for which

the institution awards an associate or baccalaureate degree''.

Subsec. (a)(3)(D). Pub. L. 103-208, Sec. 2(h)(2), substituted

''do not have a high school diploma or its recognized equivalent''

for ''are admitted pursuant to section 1091(d) of this title'' and

inserted before period at end '', except that the Secretary may

waive the limitation contained in this subparagraph if a nonprofit

institution demonstrates to the satisfaction of the Secretary that

it exceeds such limitation because it serves, through contracts

with Federal, State, or local government agencies, significant

numbers of students who do not have a high school diploma or its

recognized equivalent''.

Subsec. (a)(4)(A). Pub. L. 103-208, Sec. 2(h)(3), amended subpar.

(A) generally. Prior to amendment, subpar. (A) read as follows:

''such institution has filed for bankruptcy; or''.

Subsec. (d)(2). Pub. L. 103-208, Sec. 2(h)(4), amended par. (2)

generally. Prior to amendment, par. (2) read as follows: ''For the

purpose of any program under this subchapter and part C of

subchapter I of chapter 34 of title 42, the term 'academic year'

shall require a minimum of 30 weeks of instructional time in which

a full-time student is expected to complete at least 24 semester or

trimester hours or 36 quarter hours at an institution which

measures program length in credit hours or at least 900 clock hours

at an institution which measures program length in clock hours.''

Subsec. (e)(2). Pub. L. 103-208, Sec. 2(h)(5), amended par. (2)

generally. Prior to amendment, par. (2) read as follows: ''The

Secretary shall develop regulations to determine the quality of

programs of less than 600 clock hours in length. Such regulations

shall require, at a minimum, that the programs have a verified rate

of completion of at least 70 percent and a verified rate of

placement of at least 70 percent. Pursuant to these regulations

and notwithstanding paragraph (1), the Secretary shall allow

programs of less than 600 clock hours, but greater than 300 clock

hours, in length to be eligible to participate in the programs

authorized under part B of this subchapter.''

Subsec. (f). Pub. L. 103-208, Sec. 2(h)(6), substituted

''individual, or any State,'' for ''State'' in introductory

provisions.

1992 - Pub. L. 102-325, Sec. 481(a), amended section catchline.

Subsec. (a). Pub. L. 102-325, Sec. 481(a), added subsec. (a) and

struck out former subsec. (a) which contained pars. (1) and (2)

defining ''institution of higher education'' and ''accredited'' and

par. (3) which related to recognition of accreditation of eligible

institutions of higher education.

Subsec. (b). Pub. L. 102-325, Sec. 481(b)(4), struck out at end

''For the purpose of this subsection, the Secretary shall publish a

list of nationally recognized accrediting agencies or associations

which he determines to be reliable authority as to the quality of

training offered.''

Subsec. (b)(1). Pub. L. 102-325, Sec. 481(b)(1), substituted ''an

eligible program'' for ''not less than a 6-month program''.

Subsec. (b)(4). Pub. L. 102-325, Sec. 481(b)(2), substituted

''pursuant to part G of this subchapter,'' for ''for this purpose,

and''.

Subsec. (b)(5), (6). Pub. L. 102-325, Sec. 481(b)(3), substituted

''years, and'' for ''years.'' in cl. (5) and added cl. (6).

Subsec. (c)(1). Pub. L. 102-325, Sec. 481(c), substituted ''an

eligible program'' for ''not less than a six-month program''.

Subsec. (d). Pub. L. 102-325, Sec. 481(d), inserted ''and award''

after ''Academic'' in heading and amended text generally. Prior to

amendment, text read as follows: ''For the purpose of any program

under this subchapter and part C of subchapter I of chapter 34 of

title 42, the term 'academic year' shall be defined by the

Secretary by regulation.''

Subsec. (e). Pub. L. 102-325, Sec. 481(e), amended subsec. (e)

generally, substituting provisions relating to eligible program for

provisions relating to impact of loss of accreditation.

Subsec. (f). Pub. L. 102-325, Sec. 481(f), added subsec. (f).

1991 - Subsec. (b). Pub. L. 102-26, Sec. 2(d)(2)(A), repealed

Pub. L. 101-508, Sec. 3005(b). See 1990 Amendment note below.

Pub. L. 102-26, Sec. 2(a)(2), struck out ''and who have the

ability to benefit (as determined by the institution under section

1091(d) of this title) from the training offered by the

institution'' before period at end of second sentence, and struck

out at end ''The Secretary shall not promulgate regulations

defining the admissions procedures or remediation programs that

must be used by an institution in admitting students on the basis

of their ability to benefit from the training offered and shall

not, as a condition of recognition under section 413(e) of this

Act, impose upon any accrediting body or bodies standards which are

different or more restrictive than the standards provided in this

subsection.''

Subsec. (c). Pub. L. 102-26, Sec. 2(a)(3), struck out before

period at end ''and who have the ability to benefit (as determined

by the institution under section 1091(d) of this title) from the

training offered by the institution''.

1990 - Subsec. (b). Pub. L. 101-508, which inserted '', except in

accordance with section 1091(d) of this title,'' after ''shall

not'' in fourth sentence, was repealed by Pub. L. 102-26, Sec.

2(d)(2)(A). See Construction of 1991 Amendment note below.

1989 - Subsec. (a)(1). Pub. L. 101-239, Sec. 2007(b)(1),

substituted ''Subject to subsection (e) of this section, for the

purpose'' for ''For the purpose''.

Subsec. (a)(3). Pub. L. 101-239, Sec. 2007(c), added par. (3).

Subsec. (e). Pub. L. 101-239, Sec. 2007(b)(2), added subsec. (e).

1987 - Subsec. (c). Pub. L. 100-50 substituted ''section 1091(d)

of this title'' for ''subsection (d) of this section''.

EFFECTIVE DATE OF 1998 AMENDMENTS

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.

Amendment by Pub. L. 105-216 effective 1 year after July 29,

1998, see section 13 of Pub. L. 105-216, set out as an Effective

Date note under section 4901 of Title 12, Banks and Banking.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 498 of Pub. L. 102-325 provided that: ''The changes made

in part G of title IV of the Act (20 U.S.C. 1088 et seq.) by the

amendments made by this part (part G (Sec. 481-498) of title IV of

Pub. L. 102-325, enacting sections 1091b, 1092c, 1094a, 1094b,

1098a, and 1098b of this title, amending sections 1088 to 1091,

1092, 1092b, 1093, 1094, 1095, 1096, 1097, and 1098 of this title,

and repealing section 1096a of this title) shall take effect on the

date of enactment of this Act (July 23, 1992), except that -

''(1) as otherwise provided in such part G;

''(2) the changes in section 481(a) (20 U.S.C. 1088(a)),

relating to the definition of institution of higher education,

other than paragraph (4) of such section, shall be effective on

and after October 1, 1992;

''(3) section 481(e) as added by such amendments, relating to

the definition of eligible program, shall be effective on and

after July 1, 1993;

''(4) section 484(m)(1) (20 U.S.C. 1091(m)(1)), relating to

proportion of courses permitted to be correspondence courses, as

added by such amendments shall be effective on and after October

1, 1992;

''(5) the changes in section 485 (20 U.S.C. 1092), relating to

disclosures, shall be effective with respect to periods of

enrollment beginning on or after July 1, 1993;

''(6) the changes in section 488 (20 U.S.C. 1095), relating to

transfers of allotments, shall apply with respect to funds

provided for award years beginning on or after July 1, 1993; and

''(7) the changes in section 489 (20 U.S.C. 1096), relating to

payments for administrative expenses, shall apply with respect to

funds provided for award years beginning on or after July 1,

1993.''

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by Pub. L. 102-26 applicable to any grant, loan, or

work assistance to cover the cost of instruction for periods of

enrollment beginning on or after July 1, 1991, see section 2(d)(1)

of Pub. L. 102-26, set out as a note under section 1085 of this

title.

EFFECTIVE DATE OF 1990 AMENDMENT

Section 3005(c) of Pub. L. 101-508, which provided that the

amendments made by section 3005 (amending this section and section

1091 of this title) were to apply to any grant, loan, or work

assistance to cover the cost of instruction for periods of

enrollment beginning on or after Jan. 1, 1991, was repealed by

section 2(d)(2)(A) of Pub. L. 102-26. See Construction of 1991

Amendment note below.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

CONSTRUCTION OF 1991 AMENDMENT

Section 2(d)(2)(A) of Pub. L. 102-26 provided that: ''Section

3005 of the Omnibus Reconciliation Act of 1990 (Pub. L. 101-508,

amending this section and section 1091 of this title and enacting

provisions set out as a note above) is repealed. Sections 484(d)

and 481(b) of the Act (20 U.S.C. 1091(d), 1088(b)) shall be applied

as if such section 3005 had not been enacted.''

NEED-BASED AID

Section 1544 of Pub. L. 102-325 authorized institutions of higher

education to voluntarily agree with other such institutions to

award financial aid not awarded under this chapter to students

attending such institutions only on basis of demonstrated financial

need for such aid, and to discuss and adopt principles of

professional judgment for determining student financial need for

such aid, with exceptions for cases pending on July 23, 1992, and

for discussions or agreements on prospective financial aid awards

to specific common applicants, and provided that such authorization

was to expire on Sept. 30, 1994, prior to repeal by Pub. L.

103-382, title V, Sec. 568(e)(2), Oct. 20, 1994, 108 Stat. 4061.

See section 568(a)-(d) of Pub. L. 103-382, set out as a note under

section 1 of Title 15, Commerce and Trade.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1075, 1078, 1078-8, 1093,

5938 of this title; title 26 sections 25A, 529; title 29 section

2204; title 42 sections 604, 3796d-6.

-CITE-

20 USC Sec. 1088a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1088a. Clock and credit hour treatment of diploma nursing

schools

-STATUTE-

Notwithstanding any other provision of this chapter, any

regulations promulgated by the Secretary concerning the

relationship between clock hours and semester, trimester, or

quarter hours in calculating student grant, loan, or work

assistance under this subchapter and part C of subchapter I of

chapter 34 of title 42, shall not apply to a public or private

nonprofit hospital-based school of nursing that awards a diploma at

the completion of the school's program of education.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 481A, as added Pub. L. 103-382,

title III, Sec. 360(a), Oct. 20, 1994, 108 Stat. 3969.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, 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.

-MISC2-

PRIOR PROVISIONS

Prior sections 1088a to 1088g were omitted in the general

amendment of this part by Pub. L. 96-374.

Section 1088a, Pub. L. 89-329, title IV, Sec. 492, formerly Sec.

462, as added Pub. L. 90-575, title I, Sec. 151, Oct. 16, 1968, 82

Stat. 1032; renumbered Sec. 492, Pub. L. 92-318, title I, Sec.

137(b), June 23, 1972, 86 Stat. 272, related to the eligibility of

residents of the Trust Territory of the Pacific Islands. See

section 1091(b) of this title.

Section 1088b, Pub. L. 89-329, title IV, Sec. 493, formerly Sec.

463, as added Pub. L. 90-575, title I, Sec. 152, Oct. 16, 1968, 82

Stat. 1033; renumbered Sec. 493, Pub. L. 92-318, title I, Sec.

137(b), June 23, 1972, 86 Stat. 272; amended Pub. L. 94-482, title

I, Sec. 131(a), Oct. 12, 1976, 90 Stat. 2147; Pub. L. 95-43, Sec.

1(a)(40), June 15, 1977, 91 Stat. 217, related to administration

expenses. See section 1096 of this title.

Section 1088b-1, Pub. L. 89-329, title IV, Sec. 493A, as added

Pub. L. 94-482, title I, Sec. 131(b), Oct. 12, 1976, 90 Stat. 2148,

related to institutional and financial assistance information for

students. See section 1092 of this title.

Section 1088b-2, Pub. L. 89-329, title IV, Sec. 493B, as added

Pub. L. 94-482, title I, Sec. 131(b), Oct. 12, 1976, 90 Stat. 2149,

related to student aid information services.

Section 1088b-3, Pub. L. 89-329, title IV, Sec. 493C, as added

Pub. L. 94-482, title I, Sec. 131(b), Oct. 12, 1976, 90 Stat. 2149,

related to the student financial assistance training program.

Section 1088c, Pub. L. 89-329, title IV, Sec. 494, formerly Sec.

464, as added Pub. L. 90-575, title I, Sec. 152, Oct. 16, 1968, 82

Stat. 1033; renumbered Sec. 494 and amended Pub. L. 92-318, title

I, Sec. 137(b), 138(a), June 23, 1972, 86 Stat. 272, 280, related

to maintenance of effort requirement.

Section 1088d, Pub. L. 89-329, title IV, Sec. 495, as added Pub.

L. 92-318, title I, Sec. 139, June 23, 1972, 86 Stat. 280; amended

S. Res. 4, Feb. 4, 1977; S. Res. 30, Mar. 7, 1979, related to

requirement that copies of rules, regulations, instructions, and

application forms be supplied to Congressional committees. See

section 1090(b) of this title.

Section 1088e, Pub. L. 89-329, title IV, Sec. 496, as added Pub.

L. 92-318, title I, Sec. 139A(a), June 23, 1972, 86 Stat. 281,

related to transfer of funds between programs. See section 1095 of

this title.

Section 1088f, Pub. L. 89-329, title IV, Sec. 497, as added Pub.

L. 92-318, title I, Sec. 139B(a), June 23, 1972, 86 Stat. 281;

amended Pub. L. 94-482, title I, Sec. 132, Oct. 12, 1976, 90 Stat.

2150; Pub. L. 95-566, Sec. 7, Nov. 1, 1978, 92 Stat. 2404, related

to eligibility for student assistance. See section 1091 of this

title.

Section 1088f-1, Pub. L. 89-329, title IV, Sec. 497A, as added

Pub. L. 94-482, title I, Sec. 133(a), Oct. 12, 1976, 90 Stat. 2150;

amended Pub. L. 95-43, Sec. 1(a)(41), June 15, 1977, 91 Stat. 217;

Pub. L. 95-561, title XII, Sec. 1231(b), Nov. 1, 1978, 92 Stat.

2346, related to fiscal eligibility of institutions.

Section 1088g, Pub. L. 89-329, title IV, Sec. 498, as added Pub.

L. 92-318, title I, Sec. 139C(a), June 23, 1972, 86 Stat. 282,

related to requirement of an affidavit of educational purpose.

EFFECTIVE DATE

Section 360(b) of Pub. L. 103-382 provided that: ''Subsection (a)

(enacting this section) and the amendment made by subsection (a)

shall take effect on July 1, 1994.''

-CITE-

20 USC Sec. 1089 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1089. Master calendar

-STATUTE-

(a) Secretary required to comply with schedule

To assure adequate notification and timely delivery of student

aid funds under this subchapter and part C of subchapter I of

chapter 34 of title 42, the Secretary shall adhere to the following

calendar dates in the year preceding the award year:

(1) Development and distribution of Federal and multiple data

entry forms -

(A) by February 1: first meeting of the technical committee

on forms design of the Department;

(B) by March 1: proposed modifications and updates pursuant

to section 1087rr of this title published in the Federal

Register;

(C) by June 1: final modifications and updates pursuant to

section 1087rr of this title published in the Federal Register;

(D) by August 15: application for Federal student assistance

and multiple data entry data elements and instructions

approved;

(E) by August 30: final approved forms delivered to servicers

and printers;

(F) by October 1: Federal and multiple data entry forms and

instructions printed; and

(G) by November 1: Federal and multiple data entry forms,

instructions, and training materials distributed.

(2) Allocations of campus-based and Pell Grant funds -

(A) by August 1: distribution of institutional application

for campus-based funds (FISAP) to institutions;

(B) by October 1: final date for submission of FISAP by

institutions to the Department;

(C) by November 15: edited FISAP and computer printout

received by institutions;

(D) by December 1: appeals procedures received by

institutions;

(E) by December 15: edits returned by institutions to the

Department;

(F) by February 1: tentative award levels received by

institutions and final Pell Grant payment schedule;

(G) by February 15: closing date for receipt of institutional

appeals by the Department;

(H) by March 1: appeals process completed;

(I) by April 1: final award notifications sent to

institutions; and

(J) by June 1: Pell Grant authorization levels sent to

institutions.

(3) The Secretary shall, to the extent practicable, notify

eligible institutions, guaranty agencies, lenders, interested

software providers, and, upon request, other interested parties,

by December 1 prior to the start of an award year of minimal

hardware and software requirements necessary to administer

programs under this subchapter and part C of subchapter I of

chapter 34 of title 42.

(4) The Secretary shall attempt to conduct training activities

for financial aid administrators and others in an expeditious and

timely manner prior to the start of an award year in order to

ensure that all participants are informed of all administrative

requirements.

(b) Timing for reallocations

With respect to any funds reallocated under section 1070b-3(e)

(FOOTNOTE 1) of this title, section 2752(e) (FOOTNOTE 1) of title

42, or section 1087bb(j) (FOOTNOTE 1) of this title, the Secretary

shall reallocate such funds at any time during the course of the

year that will best meet the purpose of the programs under subpart

3 of part A of this subchapter, part C of subchapter I of chapter

34 of title 42, and part D of this subchapter, respectively.

However, such reallocation shall occur at least once each year, not

later than September 30 of that year.

(FOOTNOTE 1) See References in Text note below.

(c) Delay of effective date of late publications

(1) Except as provided in paragraph (2), any regulatory changes

initiated by the Secretary affecting the programs under this

subchapter and part C of subchapter I of chapter 34 of title 42

that have not been published in final form by November 1 prior to

the start of the award year shall not become effective until the

beginning of the second award year after such November 1 date.

(2)(A) The Secretary may designate any regulatory provision that

affects the programs under this subchapter and part C of subchapter

I of chapter 34 of title 42 and is published in final form after

November 1 as one that an entity subject to the provision may, in

the entity's discretion, choose to implement prior to the effective

date described in paragraph (1). The Secretary may specify in the

designation when, and under what conditions, an entity may

implement the provision prior to that effective date. The

Secretary shall publish any designation under this subparagraph in

the Federal Register.

(B) If an entity chooses to implement a regulatory provision

prior to the effective date described in paragraph (1), as

permitted by subparagraph (A), the provision shall be effective

with respect to that entity in accordance with the terms of the

Secretary's designation.

(d) Notice to Congress

The Secretary shall notify the Committee on Labor and Human

Resources of the Senate and the Committee on Education and Labor of

the House of Representatives when a deadline included in the

calendar described in subsection (a) of this section is not met.

Nothing in this section shall be interpreted to penalize

institutions or deny them the specified times allotted to enable

them to return information to the Secretary based on the failure of

the Secretary to adhere to the dates specified in this section.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 482, as added Pub. L. 99-498, title

IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1477; amended Pub. L.

100-50, Sec. 15(2), June 3, 1987, 101 Stat. 355; Pub. L. 102-325,

title IV, Sec. 482, July 23, 1992, 106 Stat. 612; Pub. L. 103-208,

Sec. 2(h)(7), Dec. 20, 1993, 107 Stat. 2476; Pub. L. 104-66, title

I, Sec. 1042(b), Dec. 21, 1995, 109 Stat. 715; Pub. L. 105-244,

title IV, Sec. 481, Oct. 7, 1998, 112 Stat. 1732.)

-REFTEXT-

REFERENCES IN TEXT

Section 1070b-3 of this title, referred to in subsec. (b), was

amended by Pub. L. 105-244, title IV, Sec. 406(c)(2)(D), Oct. 7,

1998, 112 Stat. 1665, which redesignated subsecs. (e) and (f) as

(d) and (e), respectively.

Section 2752 of title 42, referred to in subsec. (b), was amended

by Pub. L. 105-244, title IV, Sec. 442(b)(2), Oct. 7, 1998, 112

Stat. 1712, which redesignated subsecs. (e) and (f) as (d) and (e),

respectively.

Section 1087bb(j) of this title, referred to in subsec. (b), was

redesignated section 1087bb(i) by Pub. L. 105-244, title IV, Sec.

462(a)(2)(H), Oct. 7, 1998, 112 Stat. 1721.

-MISC2-

PRIOR PROVISIONS

A prior section 1089, Pub. L. 89-329, title IV, Sec. 482, as

added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.

1445; amended Pub. L. 97-35, title V, Sec. 533(a)(1), (2), (b),

Aug. 13, 1981, 95 Stat. 453; Pub. L. 99-272, title XVI, Sec. 16031,

Apr. 7, 1986, 100 Stat. 354, related to analysis of student's need

for financial assistance, prior to the general revision of this

part by Pub. L. 99-498.

Another prior section 1089, Pub. L. 89-329, title IV, Sec. 499,

formerly Sec. 469, as added Pub. L. 90-575, title I, Sec. 151, Oct.

16, 1968, 82 Stat. 1032; amended Pub. L. 91-230, title IV, Sec.

401(h)(4), Apr. 13, 1970, 84 Stat. 174; renumbered Pub. L. 92-318,

title I, Sec. 137(b), June 23, 1972, 86 Stat. 272, related to the

Advisory Council on Financial Aid to Students, prior to the general

revision of this part by Pub. L. 96-374.

AMENDMENTS

1998 - Subsec. (a)(3), (4). Pub. L. 105-244, Sec. 481(a), added

pars. (3) and (4).

Subsec. (c). Pub. L. 105-244, Sec. 481(b), amended heading and

text of subsec. (c) generally. Prior to amendment, text read as

follows: ''Any regulatory changes initiated by the Secretary

affecting the programs pursuant to this subchapter and part C of

subchapter I of chapter 34 of title 42 that have not been published

in final form by December 1 prior to the start of the award year

shall not become effective until the beginning of the second award

year after such December 1 date. For award year 1994-95, this

subsection shall not require a delay in the effectiveness of

regulatory changes affecting this part and parts B and G of this

subchapter that are published in final form by May 1, 1994.''

1995 - Subsec. (d). Pub. L. 104-66, in first sentence substituted

''a deadline included in the calendar described in subsection (a)

of this section is not met'' for ''the items specified in the

calendar have been completed and provide all relevant forms, rules,

and instructions with such notice'' and after first sentence struck

out ''When a deadline included in the calendar is not met, the

Secretary, within 7 days, shall submit to the Committee on Labor

and Human Resources of the Senate and the Committee on Education

and Labor of the House of Representatives a written report,

including proper documentation, as to why the deadline was not

adhered to and a detailed plan for ensuring that subsequent dates

are met.''

1993 - Subsec. (c). Pub. L. 103-208 inserted at end ''For award

year 1994-95, this subsection shall not require a delay in the

effectiveness of regulatory changes affecting this part and parts B

and G of this subchapter that are published in final form by May 1,

1994.''

1992 - Subsec. (a)(1)(B), (C). Pub. L. 102-325, Sec. 482(b)(1),

substituted ''section 1087rr'' for ''sections 1070a-5 and 1087rr''.

Subsec. (b). Pub. L. 102-325, Sec. 482(b)(2), substituted

''subpart 3'' for ''subpart 2''.

Subsec. (c). Pub. L. 102-325, Sec. 482(a), amended subsec. (c)

generally. Prior to amendment, subsec. (c) read as follows: ''Any

additional regulatory changes initiated by the Secretary affecting

the general administration of the programs pursuant to this

subchapter and part C of subchapter I of chapter 34 of title 42

that have not been published in final form by December 1 prior to

the start of the award year shall not become effective until the

beginning of the second award year after the December 1 date.''

1987 - Subsec. (b). Pub. L. 100-50 inserted reference to section

1087bb(j) of this title and part D of this subchapter.

-CHANGE-

CHANGE OF NAME

Committee on Education and Labor of House of Representatives

treated as referring to Committee on Economic and Educational

Opportunities of House of Representatives by section 1(a) of Pub.

L. 104-14, set out as a note preceding section 21 of Title 2, The

Congress. Committee on Economic and Educational Opportunities of

House of Representatives changed to Committee on Education and the

Workforce of House of Representatives by House Resolution No. 5,

One Hundred Fifth Congress, Jan. 7, 1997.

-MISC4-

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.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

ESTABLISHMENT OF SEPARATE SYSTEMS OF NEED ANALYSIS FOR ACADEMIC

YEARS 1983-1984 THROUGH 1987-1988

Pub. L. 97-301, Sec. 4, Oct. 13, 1982, 96 Stat. 1400, as amended

by Pub. L. 98-79, Sec. 4(a), Aug. 15, 1983, 97 Stat. 480; Pub. L.

98-511, title VII, Sec. 707(3), Oct. 19, 1984, 98 Stat. 2407; Pub.

L. 99-498, title IV, Sec. 408(a)(1), Oct. 17, 1986, 100 Stat. 1495,

which required Secretary of Education to establish or approve

separate systems of need analysis for the academic years 1983-1984,

1984-1985, 1985-1986, 1986-1987, and 1987-1988 for the programs

authorized under subpart 2 (now 3) of part A (20 U.S.C. 1070b et

seq.), part C (42 U.S.C. 2751 et seq.), and part E (20 U.S.C.

1087aa et seq.) of title IV of the Higher Education Act of 1965,

was repealed by Pub. L. 99-498, title IV, Sec. 408(b), Oct. 17,

1986, 100 Stat. 1495, eff. with respect to any academic year

beginning on or after July 1, 1988.

DETERMINATION OF INDEPENDENT STUDENT STATUS FOR ACADEMIC YEARS

1982-1983 THROUGH 1987-1988

Pub. L. 97-301, Sec. 6, Oct. 13, 1982, 96 Stat. 1400, as amended

by Pub. L. 98-79, Sec. 4(a), Aug. 15, 1983, 97 Stat. 481; Pub. L.

98-516, title VII, Sec. 707(3), Oct. 19, 1984, 98 Stat. 2407; Pub.

L. 99-498, title IV, Sec. 408(a)(1), Oct. 17, 1986, 100 Stat. 1495,

which provided that notwithstanding any rule or regulation, the

criteria for the determination of independent student status,

prescribed under subsec. (c)(2) of this section, in effect for

academic year 1982-1983, was to be the criteria for such

determinations for each of the academic years 1983-1984, 1984-1985,

1985-1986, 1986-1987, and 1987-1988, was repealed by Pub. L.

99-498, title IV, Sec. 408(b), Oct. 17, 1986, 100 Stat. 1495, eff.

with respect to any academic year beginning on or after July 1,

1988.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070a, 1070a-33, 1087rr

of this title; title 42 section 2753.

-CITE-

20 USC Sec. 1090 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1090. Forms and regulations

-STATUTE-

(a) Common financial aid form development and processing

(1) Single form required

The Secretary, in cooperation with representatives of agencies

and organizations involved in student financial assistance, shall

produce, distribute, and process free of charge a common

financial reporting form to be used to determine the need and

eligibility of a student for financial assistance under parts A

through D of this subchapter and part C of subchapter I of

chapter 34 of title 42 (other than under subpart 4 of part A of

this subchapter). The Secretary shall include on the form

developed under this subsection such data items as the Secretary

determines are appropriate for inclusion. Such items shall be

selected in consultation with States to assist in the awarding of

State financial assistance. In no case shall the number of such

data items be less than the number included on the form on

October 7, 1998. Such form shall satisfy the requirements of

section 1070a(d) of this title.

(2) Charges to students and parents for use of form prohibited

The common financial reporting form prescribed by the Secretary

under paragraph (1) shall be produced, distributed, and processed

by the Secretary and no parent or student shall be charged a fee

for the collection, processing, or delivery of financial aid

through the use of such form. The need and eligibility of a

student for financial assistance under parts A through D of this

subchapter and part C of subchapter I of chapter 34 of title 42

(other than under subpart 4 of part A of this subchapter) may

only be determined by using the form developed by the Secretary

pursuant to paragraph (1) of this subsection. No student may

receive assistance under parts A through D of this subchapter and

part C of subchapter I of chapter 34 of title 42 (other than

under subpart 4 of part A of this subchapter), except by use of

the form developed by the Secretary pursuant to this section. No

data collected on a form for which a fee is charged shall be used

to complete the form prescribed under paragraph (1).

(3) Distribution of data

Institutions of higher education, guaranty agencies, and States

shall receive, without charge, the data collected by the

Secretary using the form developed pursuant to this section for

the purposes of processing loan applications and determining need

and eligibility for institutional and State financial aid

awards. Entities designated by institutions of higher education,

guaranty agencies, or States to receive such data shall be

subject to all the requirements of this section, unless such

requirements are waived by the Secretary.

(4) Contracts for collection and processing

(A) The Secretary shall, to the extent practicable, enter into

not less than 5 contracts with States, institutions of higher

education, or private organizations for the purposes of the

timely collection and processing of the form developed pursuant

to paragraph (1) and the timely delivery of the data submitted on

such form. The Secretary shall use such contracts to assist

States and institutions of higher education with the collection

of additional data required to award State or institutional

financial assistance, except that the Secretary shall not include

these additional data items on the common financial reporting

form developed pursuant to this section. The Secretary shall

include in each such contract a requirement that -

(i) any charges by the contractor to the student or parent

for additional data items required by a State or institution

for any purpose (regardless of the method of collection) shall

be reasonable and shall not exceed the marginal cost of

collecting, processing, and delivering such additional data,

taking into account any payment received by the contractor to

produce, distribute, and process the common financial reporting

form prescribed by the Secretary pursuant to paragraph (1); and

(ii) the contractor will require any person or entity to whom

the contractor provides such additional data to agree not to

collect from any student or parent any charge that would not be

permitted under this subparagraph for any such additional data.

(B) To the extent practicable, the Secretary shall ensure that

at least one contractor, or a portion of one contract, under this

paragraph will serve graduate and professional students.

(C) As part of the procurement process for the 1993-1994 award

year, and for all procurements thereafter pertaining to the

contracts under this paragraph, the Secretary shall require all

entities competing for such contracts to comply with all

requirements of this subsection and to -

(i) use the common financial reporting form as prescribed in

paragraph (1), which shall be clearly identified as the ''Free

Application for Federal Student Aid''; and

(ii) use a common, simplified reapplication form as the

Secretary shall prescribe pursuant to subsection (b) of this

section, in each award year.

(D) The Secretary shall reimburse all approved contractors at a

reasonable predetermined rate for processing such applications,

for issuing eligibility reports, and for carrying out other

services or requirements that may be prescribed by the Secretary.

(E) All approved contractors shall be required to adhere to all

editing, processing, and reporting requirements established by

the Secretary to ensure consistency.

(F) No approved contractor shall enter into exclusive

arrangements with guarantors, lenders, secondary markets, or

institutions of higher education for the purpose of reselling or

sharing of data collected for the multiple data entry process.

All data collected under a contract issued by the Secretary

pursuant to this paragraph for the multiple data entry process is

the exclusive property of the Secretary and may not be

transferred to a third party by an approved contractor without

the Secretary's express written approval.

(5) Electronic forms

(A) The Secretary, in cooperation with representatives of

agencies and organizations involved in student financial

assistance, including private computer software providers, shall

develop an electronic version of the form described in paragraph

(1). As permitted by the Secretary, such an electronic version

shall not require a signature to be collected at the time such

version is submitted, if a signature is subsequently submitted by

the applicant. The Secretary shall prescribe such version not

later than 120 days after October 7, 1998.

(B) Nothing in this section shall be construed to prohibit the

use of the form developed by the Secretary pursuant to

subparagraph (A) by an eligible institution, eligible lender,

guaranty agency, State grant agency, private computer software

providers, a consortium thereof, or such other entities as the

Secretary may designate.

(C) No fee shall be charged to students in connection with the

use of the electronic version of the form, or of any other

electronic forms used in conjunction with such form in applying

for Federal or State student financial assistance.

(D) The Secretary shall ensure that data collection complies

with section 552a of title 5 and that any entity using the

electronic version of the form developed by the Secretary

pursuant to subparagraph (A) shall maintain reasonable and

appropriate administrative, technical, and physical safeguards to

ensure the integrity and confidentiality of the information, and

to protect against security threats, or unauthorized uses or

disclosures of the information provided on the electronic version

of the form. Data collected by such version of the form shall be

used only for the application, award, and administration of aid

awarded under this subchapter and part C of subchapter I of

chapter 34 of title 42, State aid, or aid awarded by eligible

institutions or such entities as the Secretary may designate. No

data collected by such version of the form shall be used for

making final aid awards under this subchapter and part C of

subchapter I of chapter 34 of title 42 until such data have been

processed by the Secretary or a contractor or designee of the

Secretary.

(6) Third party servicers and private software providers

To the extent practicable and in a timely manner, the Secretary

shall provide, to private organizations and consortia that

develop software used by eligible institutions for the

administration of funds under this subchapter and part C of

subchapter I of chapter 34 of title 42, all the necessary

specifications that the organizations and consortia must meet for

the software the organizations and consortia develop, produce,

and distribute (including any diskette, modem, or network

communications) which are so used. The specifications shall

contain record layouts for required data. The Secretary shall

develop in advance of each processing cycle an annual schedule

for providing such specifications. The Secretary, to the extent

practicable, shall use means of providing such specifications,

including conferences and other meetings, outreach, and technical

support mechanisms (such as training and printed reference

materials). The Secretary shall, from time to time, solicit from

such organizations and consortia means of improving the support

provided by the Secretary.

(7) Parent's social security number and birth date

The Secretary is authorized to include on the form developed

under this subsection space for the social security number and

birth date of parents of dependent students seeking financial

assistance under this subchapter and part C of subchapter I of

chapter 34 of title 42.

(b) Streamlined reapplication process

(1) The Secretary shall develop a streamlined reapplication form

and process, including electronic reapplication process, consistent

with the requirements of subsection (a) of this section, for those

recipients who apply for financial aid funds under this subchapter

and part C of subchapter I of chapter 34 of title 42 in the next

succeeding academic year subsequent to the initial year in which

such recipients apply.

(2) The Secretary shall develop appropriate mechanisms to support

reapplication.

(3) The Secretary shall determine, in cooperation with States,

institutions of higher education, agencies and organizations

involved in student financial assistance, the data elements that

can be updated from the previous academic year's application.

(4) Nothing in this subchapter and part C of subchapter I of

chapter 34 of title 42 shall be interpreted as limiting the

authority of the Secretary to reduce the number of data elements

required of reapplicants.

(5) Individuals determined to have a zero family contribution

pursuant to section 1087ss of this title shall not be required to

provide any financial data, except that which is necessary to

determine eligibility under that section.

(c) Information to committees of Congress

Copies of all rules, regulations, guidelines, instructions, and

application forms published or promulgated pursuant to this

subchapter and part C of subchapter I of chapter 34 of title 42

shall be provided to the Committee on Labor and Human Resources of

the Senate and the Committee on Education and the Workforce of the

House of Representatives at least 45 days prior to their effective

date.

(d) Toll-free information

The Secretary shall contract for, or establish, and publicize a

toll-free telephone service to provide timely and accurate

information to the general public. The information provided shall

include specific instructions on completing the application form

for assistance under this subchapter and part C of subchapter I of

chapter 34 of title 42. Such service shall also include a service

accessible by telecommunications devices for the deaf (TDD's) and

shall, in addition to the services provided for in the previous

sentence, refer such students to the national clearinghouse on

postsecondary education that is authorized under section

1485(d)(2)(C) of this title.

(e) Preparer

Any financial aid application required to be made under this

subchapter and part C of subchapter I of chapter 34 of title 42

shall include the name, signature, address or employer's address,

social security number or employer identification number, and

organizational affiliation of the preparer of such financial aid

application.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 483, as added Pub. L. 99-498, title

IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1478; amended Pub. L.

100-50, Sec. 15(3)-(6), June 3, 1987, 101 Stat. 356; Pub. L.

102-325, title IV, Sec. 483, July 23, 1992, 106 Stat. 612; Pub. L.

103-208, Sec. 2(h)(8)-(12), Dec. 20, 1993, 107 Stat. 2476; Pub. L.

105-244, title IV, Sec. 482, Oct. 7, 1998, 112 Stat. 1733.)

-MISC1-

PRIOR PROVISIONS

A prior section 1090, Pub. L. 89-329, title IV, Sec. 483, as

added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.

1448, related to forms and regulations for student assistance

programs, prior to the general revision of this part by Pub. L.

99-498.

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-244, Sec. 482(a)(1), substituted

''form development'' for ''form'' in heading.

Subsec. (a)(1). Pub. L. 105-244, Sec. 482(a)(2)(D), struck out at

end ''For the purpose of collecting eligibility and other data for

the purpose of part B of this subchapter, the Secretary shall

develop a separate, identifiable loan application document

(pursuant to section 1082(m) of this title) that applicants or

institutions in which the students are enrolled or accepted for

enrollment shall submit directly to eligible lenders and on which

the applicant shall clearly indicate a choice of a lender.''

Pub. L. 105-244, Sec. 482(a)(2)(C), substituted ''The Secretary

shall include on the form developed under this subsection such data

items as the Secretary determines are appropriate for inclusion.

Such items shall be selected in consultation with States to assist

in the awarding of State financial assistance. In no case shall

the number of such data items be less than the number included on

the form on October 7, 1998.'' for ''The Secretary may include on

the form developed pursuant to this paragraph not more than eight

nonfinancial data items selected in consultation with the States to

assist the States in awarding State student financial assistance.''

Pub. L. 105-244, Sec. 482(a)(2)(A), (B), substituted ''A through

D'' for ''A, C, and D'' and struck out ''and to determine the need

of a student for the purpose of part B of this subchapter'' after

''part A of this subchapter)''.

Subsec. (a)(2). Pub. L. 105-244, Sec. 482(a)(3), substituted ''A

through D'' for ''A, C, and D'' in two places and struck out ''and

the need of a student for the purpose of part B of this

subchapter,'' before ''may only be determined'' and ''or have the

student's need established for the purpose of part B of this

subchapter'' before '', except by use of''.

Subsec. (a)(3). Pub. L. 105-244, Sec. 482(a)(4), amended heading

and text of par. (3) generally. Prior to amendment, text read as

follows: ''Institutions of higher education and States shall

receive, without charge, the data collected by the Secretary using

the form developed pursuant to this section for the purposes of

determining need and eligibility for institutional and State

financial aid awards. Entities designated by institutions of

higher education or States to receive such data shall be subject to

all requirements of this section, unless such requirements are

waived by the Secretary.''

Subsec. (a)(5) to (7). Pub. L. 105-244, Sec. 482(a)(5), added

pars. (5) to (7).

Subsec. (b)(1). Pub. L. 105-244, Sec. 482(b), struck out '',

within 240 days after July 23, 1992,'' after ''The Secretary

shall''.

Subsec. (c). Pub. L. 105-244, Sec. 482(c), substituted ''and the

Workforce'' for ''and Labor''.

Subsec. (d). Pub. L. 105-244, Sec. 482(d), substituted ''section

1485(d)(2)(C)'' for ''section 1433(c)''.

Subsec. (f). Pub. L. 105-244, Sec. 482(e), struck out heading and

text of subsec. (f). Text read as follows: ''Nothing in section

1544 of the Higher Education Amendments of 1992 shall relieve

processors or institutions of higher education of any or all

obligations under this section.''

1993 - Subsec. (a)(1). Pub. L. 103-208, Sec. 2(h)(8), made

technical amendment to reference to section 1070a(d) of this title

to correct reference to corresponding section of original act.

Subsec. (a)(2). Pub. L. 103-208, Sec. 2(h)(9), inserted at end

''No data collected on a form for which a fee is charged shall be

used to complete the form prescribed under paragraph (1).''

Subsec. (a)(3). Pub. L. 103-208, Sec. 2(h)(10), inserted at end

''Entities designated by institutions of higher education or States

to receive such data shall be subject to all requirements of this

section, unless such requirements are waived by the Secretary.''

Subsecs. (d), (e). Pub. L. 103-208, Sec. 2(h)(12), redesignated

subsecs. (e) and (f) as (d) and (e), respectively.

Subsec. (f). Pub. L. 103-208, Sec. 2(h)(12), redesignated subsec.

(g) as (f). Former subsec. (f) redesignated (e).

Pub. L. 103-208, Sec. 2(h)(11), substituted ''address or

employer's address, social security number or employer

identification number,'' for ''address, social security number,''.

Subsec. (g). Pub. L. 103-208, Sec. 2(h)(12), redesignated subsec.

(g) as (f).

1992 - Subsec. (a). Pub. L. 102-325, Sec. 483(a), added subsec.

(a) and struck out former subsec. (a) which contained pars. (1) to

(5) relating to a common financial aid form and processing of

financial aid applications.

Subsec. (b). Pub. L. 102-325, Sec. 483(a), added subsec. (b) and

struck out former subsec. (b) which related to certifications of

capability of systems for determining expected family

contributions.

Subsec. (d). Pub. L. 102-325, Sec. 483(b)(1), struck out subsec.

(d) which related to provision of early notice to students of their

potential eligibility for financial aid.

Subsec. (e). Pub. L. 102-325, Sec. 483(b)(2), amended subsec. (e)

generally. Prior to amendment, subsec. (e) read as follows: ''The

Secretary shall contract for, or establish, and publicize a

toll-free telephone number to provide timely and accurate

information to the general public. The information provided shall

include specific instructions on completing application forms for

assistance under this subchapter and part C of subchapter I of

chapter 34 of title 42.''

Subsecs. (f), (g). Pub. L. 102-325, Sec. 483(b)(1), (3), added

subsecs. (f) and (g) and struck out former subsec. (f) which

related to notice of student aid receipt.

1987 - Subsec. (a)(1). Pub. L. 100-50, Sec. 15(3), (4), inserted

in second sentence ''or institutions in which the students are

enrolled or accepted for enrollment'' after ''that applicants'' and

''and on which the applicant shall clearly indicate a choice of

lender'' before period at end.

Subsec. (a)(2). Pub. L. 100-50, Sec. 15(5), substituted ''not

less than 5'' for ''not less than 3'' and inserted sentence at end

providing that the Secretary not select new multiple data entry

processors until certain examinations and recommendations are made

by the Advisory Commission on Student Financial Assistance.

Subsecs. (b) to (f). Pub. L. 100-50, Sec. 15(6), added subsec.

(b) and redesignated former subsecs. (b) to (e) as (c) to (f),

respectively.

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.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

EFFECTIVE DATE

Section effective Oct. 17, 1986, except as otherwise provided,

see section 2 of Pub. L. 99-498, set out as a note under section

1001 of this title.

Subsec. (e) of this section applicable to student assistance

awarded for periods of enrollment beginning on or after July 1,

1987, see section 407(b) of Pub. L. 99-498, set out as a note under

section 1091 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1018, 1018b, 1070a-33,

1082, 1087e, 1087ss of this title.

-CITE-

20 USC Sec. 1091 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1091. Student eligibility

-STATUTE-

(a) In general

In order to receive any grant, loan, or work assistance under

this subchapter and part C of subchapter I of chapter 34 of title

42, a student must -

(1) be enrolled or accepted for enrollment in a degree,

certificate, or other program (including a program of study

abroad approved for credit by the eligible institution at which

such student is enrolled) leading to a recognized educational

credential at an institution of higher education that is an

eligible institution in accordance with the provisions of section

1094 of this title, except as provided in subsections (b)(3) and

(b)(4) of this section, and not be enrolled in an elementary or

secondary school;

(2) if the student is presently enrolled at an institution, be

maintaining satisfactory progress in the course of study the

student is pursuing in accordance with the provisions of

subsection (c) of this section;

(3) not owe a refund on grants previously received at any

institution under this subchapter and part C of subchapter I of

chapter 34 of title 42, or be in default on any loan from a

student loan fund at any institution provided for in part D of

this subchapter, or a loan made, insured, or guaranteed by the

Secretary under this subchapter and part C of subchapter I of

chapter 34 of title 42 for attendance at any institution;

(4) file with the Secretary, as part of the original financial

aid application process, a certification,, (FOOTNOTE 1) which

need not be notarized, but which shall include -

(FOOTNOTE 1) So in original.

(A) a statement of educational purpose stating that the money

attributable to such grant, loan, or loan guarantee will be

used solely for expenses related to attendance or continued

attendance at such institution; and

(B) such student's social security number, except that the

provisions of this subparagraph shall not apply to a student

from the Republic of the Marshall Islands, the Federated States

of Micronesia, or the Republic of Palau; (FOOTNOTE 2)

(FOOTNOTE 2) So in original. Probably should be followed by

''and''.

(5) be a citizen or national of the United States, a permanent

resident of the United States, able to provide evidence from the

Immigration and Naturalization Service that he or she is in the

United States for other than a temporary purpose with the

intention of becoming a citizen or permanent resident, (FOOTNOTE

3) a citizen of any one of the Freely Associated States.

(FOOTNOTE 3) So in original. Probably should be followed by

''or''.

(b) Eligibility for student loans

(1) In order to be eligible to receive any loan under this

subchapter and part C of subchapter I of chapter 34 of title 42

(other than a loan under section 1078-2 or 1078-3 of this title)

for any period of enrollment, a student who is not a graduate or

professional student (as defined in regulations of the Secretary),

and who is enrolled in a program at an institution which has a

participation agreement with the Secretary to make awards under

subpart 1 of part A of this subchapter, shall -

(A)(i) have received a determination of eligibility or

ineligibility for a Pell Grant under such subpart 1 for such

period of enrollment; and (ii) if determined to be eligible, have

filed an application for a Pell Grant for such enrollment period;

or

(B) have (A) filed an application with the Pell Grant processor

for such institution for such enrollment period, and (B) received

from the financial aid administrator of the institution a

preliminary determination of the student's eligibility or

ineligibility for a grant under such subpart 1.

(2) In order to be eligible to receive any loan under section

1078-1 (FOOTNOTE 4) of this title for any period of enrollment, a

student shall -

(FOOTNOTE 4) See References in Text note below.

(A) have received a determination of need for a loan under

section 1078(a)(2)(B) of this title;

(B) if determined to have need for a loan under section 1078 of

this title, have applied for such a loan; and

(C) has applied for a loan under section 1078-8 of this title,

if such student is eligible to apply for such a loan.

(3) A student who -

(A) is carrying at least one-half the normal full-time work

load for the course of study that the student is pursuing, as

determined by an eligible institution, and

(B) is enrolled in a course of study necessary for enrollment

in a program leading to a degree or certificate,

shall be, notwithstanding paragraph (1) of subsection (a) of this

section, eligible to apply for loans under part B or C of this

subchapter. The eligibility described in this paragraph shall be

restricted to one 12-month period.

(4) A student who -

(A) is carrying at least one-half the normal full-time work

load for the course of study the student is pursuing, as

determined by the institution, and

(B) is enrolled or accepted for enrollment in a program at an

eligible institution necessary for a professional credential or

certification from a State that is required for employment as a

teacher in an elementary or secondary school in that State,

shall be, notwithstanding paragraph (1) of subsection (a) of this

section, eligible to apply for loans under part B, C, or D of this

subchapter or work-study assistance under part C of subchapter I of

chapter 34 of title 42.

(5) Notwithstanding any other provision of this subsection, no

incarcerated student is eligible to receive a loan under this

subchapter and part C of subchapter I of chapter 34 of title 42.

(c) Satisfactory progress

(1) For the purpose of subsection (a)(2) of this section, a

student is maintaining satisfactory progress if -

(A) the institution at which the student is in attendance,

reviews the progress of the student at the end of each academic

year, or its equivalent, as determined by the institution, and

(B) the student has a cumulative C average, or its equivalent

or academic standing consistent with the requirements for

graduation, as determined by the institution, at the end of the

second such academic year.

(2) Whenever a student fails to meet the eligibility requirements

of subsection (a)(2) of this section as a result of the application

of this subsection and subsequent to that failure the student has

academic standing consistent with the requirements for graduation,

as determined by the institution, for any grading period, the

student may, subject to this subsection, again be eligible under

subsection (a)(2) of this section for a grant, loan, or work

assistance under this subchapter and part C of subchapter I of

chapter 34 of title 42.

(3) Any institution of higher education at which the student is

in attendance may waive the provisions of paragraph (1) or

paragraph (2) of this subsection for undue hardship based on -

(A) the death of a relative of the student,

(B) the personal injury or illness of the student, or

(C) special circumstances as determined by the institution.

(d) Students who are not high school graduates

In order for a student who does not have a certificate of

graduation from a school providing secondary education, or the

recognized equivalent of such certificate, to be eligible for any

assistance under subparts 1, 3, and 4 of part A and parts B, C, and

D of this subchapter and part C of subchapter I of chapter 34 of

title 42, the student shall meet one of the following standards:

(1) The student shall take an independently administered

examination and shall achieve a score, specified by the

Secretary, demonstrating that such student can benefit from the

education or training being offered. Such examination shall be

approved by the Secretary on the basis of compliance with such

standards for development, administration, and scoring as the

Secretary may prescribe in regulations.

(2) The student shall be determined as having the ability to

benefit from the education or training in accordance with such

process as the State shall prescribe. Any such process described

or approved by a State for the purposes of this section shall be

effective 6 months after the date of submission to the Secretary

unless the Secretary disapproves such process. In determining

whether to approve or disapprove such process, the Secretary

shall take into account the effectiveness of such process in

enabling students without high school diplomas or the equivalent

thereof to benefit from the instruction offered by institutions

utilizing such process, and shall also take into account the

cultural diversity, economic circumstances, and educational

preparation of the populations served by the institutions.

(3) The student has completed a secondary school education in a

home school setting that is treated as a home school or private

school under State law.

(e) Certification for GSL eligibility

Each eligible institution may certify student eligibility for a

loan by an eligible lender under part B of this subchapter prior to

completing the review for accuracy of the information submitted by

the applicant required by regulations issued under this subchapter

and part C of subchapter I of chapter 34 of title 42, if -

(1) checks for the loans are mailed to the eligible institution

prior to disbursements;

(2) the disbursement is not made until the review is complete;

and

(3) the eligible institution has no evidence or documentation

on which the institution may base a determination that the

information submitted by the applicant is incorrect.

(f) Loss of eligibility for violation of loan limits

(1) No student shall be eligible to receive any grant, loan, or

work assistance under this subchapter and part C of subchapter I of

chapter 34 of title 42 if the eligible institution determines that

the student fraudulently borrowed in violation of the annual loan

limits under part B, part C, or part D of this subchapter in the

same academic year, or if the student fraudulently borrowed in

excess of the aggregate maximum loan limits under such part B, part

C, or part D.

(2) If the institution determines that the student inadvertently

borrowed amounts in excess of such annual or aggregate maximum loan

limits, such institution shall allow the student to repay any

amount borrowed in excess of such limits prior to certifying the

student's eligibility for further assistance under this subchapter

and part C of subchapter I of chapter 34 of title 42.

(g) Verification of immigration status

(1) In general

The Secretary shall implement a system under which the

statements and supporting documentation, if required, of an

individual declaring that such individual is in compliance with

the requirements of subsection (a)(5) of this section shall be

verified prior to the individual's receipt of a grant, loan, or

work assistance under this subchapter and part C of subchapter I

of chapter 34 of title 42.

(2) Special rule

The documents collected and maintained by an eligible

institution in the admission of a student to the institution may

be used by the student in lieu of the documents used to establish

both employment authorization and identity under section

1324a(b)(1)(B) of title 8 to verify eligibility to participate in

work-study programs under part C of subchapter I of chapter 34 of

title 42.

(3) Verification mechanisms

The Secretary is authorized to verify such statements and

supporting documentation through a data match, using an automated

or other system, with other Federal agencies that may be in

possession of information relevant to such statements and

supporting documentation.

(4) Review

In the case of such an individual who is not a citizen or

national of the United States, if the statement described in

paragraph (1) is submitted but the documentation required under

paragraph (2) is not presented or if the documentation required

under paragraph (2)(A) is presented but such documentation is not

verified under paragraph (3) -

(A) the institution -

(i) shall provide a reasonable opportunity to submit to the

institution evidence indicating a satisfactory immigration

status, and

(ii) may not delay, deny, reduce, or terminate the

individual's eligibility for the grant, loan, or work

assistance on the basis of the individual's immigration

status until such a reasonable opportunity has been provided;

and

(B) if there are submitted documents which the institution

determines constitute reasonable evidence indicating such

status -

(i) the institution shall transmit to the Immigration and

Naturalization Service either photostatic or other similar

copies of such documents, or information from such documents,

as specified by the Immigration and Naturalization Service,

for official verification,

(ii) pending such verification, the institution may not

delay, deny, reduce, or terminate the individual's

eligibility for the grant, loan, or work assistance on the

basis of the individual's immigration status, and

(iii) the institution shall not be liable for the

consequences of any action, delay, or failure of the Service

to conduct such verification.

(h) Limitations of enforcement actions against institutions

The Secretary shall not take any compliance, disallowance,

penalty, or other regulatory action against an institution of

higher education with respect to any error in the institution's

determination to make a student eligible for a grant, loan, or work

assistance based on citizenship or immigration status -

(1) if the institution has provided such eligibility based on a

verification of satisfactory immigration status by the

Immigration and Naturalization Service,

(2) because the institution, under subsection (h)(4)(A)(i)

(FOOTNOTE 5) of this section, was required to provide a

reasonable opportunity to submit documentation, or

(FOOTNOTE 5) See References in Text note below.

(3) because the institution, under subsection (h)(4)(B)(i)

(FOOTNOTE 5) of this section, was required to wait for the

response of the Immigration and Naturalization Service to the

institution's request for official verification of the

immigration status of the student.

(i) Validity of loan guarantees for loan payments made before

immigration status verification completed

Notwithstanding subsection (h) (FOOTNOTE 5) of this section, if -

(1) a guaranty is made under this subchapter and part C of

subchapter I of chapter 34 of title 42 for a loan made with

respect to an individual,

(2) at the time the guaranty is entered into, the provisions of

subsection (h) (FOOTNOTE 5) of this section had been complied

with,

(3) amounts are paid under the loan subject to such guaranty,

and

(4) there is a subsequent determination that, because of an

unsatisfactory immigration status, the individual is not eligible

for the loan,

the official of the institution making the determination shall

notify and instruct the entity making the loan to cease further

payments under the loan, but such guaranty shall not be voided or

otherwise nullified with respect to such payments made before the

date the entity receives the notice.

(j) Assistance under subparts 1 and 3 of part A, and part C

Notwithstanding any other provision of law, a student shall be

eligible until September 30, 2004, for assistance under subparts 1

and 3 of part A of this subchapter, and part C of subchapter I of

chapter 34 of title 42, if the student is otherwise qualified and -

(1) is a citizen of any one of the Freely Associated States and

attends an institution of higher education in a State or a public

or nonprofit private institution of higher education in the

Freely Associated States; or

(2) meets the requirements of subsection (a)(5) of this section

and attends a public or nonprofit private institution of higher

education in any one of the Freely Associated States.

(k) Special rule for correspondence courses

A student shall not be eligible to receive grant, loan, or work

assistance under this subchapter and part C of subchapter I of

chapter 34 of title 42 for a correspondence course unless such

course is part of a program leading to an associate, bachelor or

graduate degree.

(l) Courses offered through telecommunications

(1) Relation to correspondence courses

(A) In general

A student enrolled in a course of instruction at an

institution of higher education that is offered in whole or in

part through telecommunications and leads to a recognized

certificate for a program of study of 1 year or longer, or a

recognized associate, baccalaureate, or graduate degree,

conferred by such institution, shall not be considered to be

enrolled in correspondence courses unless the total amount of

telecommunications and correspondence courses at such

institution equals or exceeds 50 percent of the total amount of

all courses at the institution.

(B) Requirement

An institution of higher education referred to in

subparagraph (A) is an institution of higher education -

(i) that is not an institute or school described in section

2471(4)(C) (FOOTNOTE 6) of this title; and

(FOOTNOTE 6) See References in Text note below.

(ii) for which at least 50 percent of the programs of study

offered by the institution lead to the award of a recognized

associate, baccalaureate, or graduate degree.

(2) Restriction or reductions of financial aid

A student's eligibility to receive grants, loans, or work

assistance under this subchapter and part C of subchapter I of

chapter 34 of title 42 shall be reduced if a financial aid

officer determines under the discretionary authority provided in

section 1087tt of this title that telecommunications instruction

results in a substantially reduced cost of attendance to such

student.

(3) Special rule

For award years prior to July 23, 1992, the Secretary shall not

take any compliance, disallowance, penalty, or other action

against a student or an eligible institution when such action

arises out of such institution's prior award of student

assistance under this subchapter and part C of subchapter I of

chapter 34 of title 42 if the institution demonstrates to the

satisfaction of the Secretary that its course of instruction

would have been in conformance with the requirements of this

subsection.

(4) ''Telecommunications'' defined

For the purposes of this subsection, the term

''telecommunications'' means the use of television, audio, or

computer transmission, including open broadcast, closed circuit,

cable, microwave, or satellite, audio conferencing, computer

conferencing, or video cassettes or discs, except that such term

does not include a course that is delivered using video cassette

or disc recordings at such institution and that is not delivered

in person to other students of that institution.

(m) Students with a first baccalaureate or professional degree

A student shall not be ineligible for assistance under parts B,

C, and D of this subchapter and part C of subchapter I of chapter

34 of title 42 because such student has previously received a

baccalaureate or professional degree.

(n) Data base matching

To enforce the Selective Service registration provisions of

section 1113 of Public Law 97-252, the Secretary shall conduct data

base matches with the Selective Service, using common demographic

data elements. Appropriate confirmation, through an application

output document or through other means, of any person's

registration shall fulfill the requirement to file a separate

statement of compliance. In the absence of a confirmation from

such data matches, an institution may also use data or documents

that support either the student's registration, or the absence of a

registration requirement for the student, to fulfill the

requirement to file a separate statement of compliance. The

mechanism for reporting the resolution of nonconfirmed matches

shall be prescribed by the Secretary in regulations.

(o) Study abroad

Nothing in this chapter shall be construed to limit or otherwise

prohibit access to study abroad programs approved by the home

institution at which a student is enrolled. An otherwise eligible

student who is engaged in a program of study abroad approved for

academic credit by the home institution at which the student is

enrolled shall be eligible to receive grant, loan, or work

assistance under this subchapter and part C of subchapter I of

chapter 34 of title 42, without regard to whether such study abroad

program is required as part of the student's degree program.

(p) Verification of social security number

The Secretary of Education, in cooperation with the Commissioner

of the Social Security Administration, shall verify any social

security number provided by a student to an eligible institution

under subsection (a)(4) of this section and shall enforce the

following conditions:

(1) Except as provided in paragraphs (2) and (3), an

institution shall not deny, reduce, delay, or terminate a

student's eligibility for assistance under this part because

social security number verification is pending.

(2) If there is a determination by the Secretary that the

social security number provided to an eligible institution by a

student is incorrect, the institution shall deny or terminate the

student's eligibility for any grant, loan, or work assistance

under this subchapter and part C of subchapter I of chapter 34 of

title 42 until such time as the student provides documented

evidence of a social security number that is determined by the

institution to be correct.

(3) If there is a determination by the Secretary that the

social security number provided to an eligible institution by a

student is incorrect, and a correct social security number cannot

be provided by such student, and a loan has been guaranteed for

such student under part B of this subchapter, the institution

shall notify and instruct the lender and guaranty agency making

and guaranteeing the loan, respectively, to cease further

disbursements of the loan, but such guaranty shall not be voided

or otherwise nullified with respect to such disbursements made

before the date that the lender and the guaranty agency receives

such notice.

(4) Nothing in this subsection shall permit the Secretary to

take any compliance, disallowance, penalty, or other regulatory

action against -

(A) any institution of higher education with respect to any

error in a social security number, unless such error was a

result of fraud on the part of the institution; or

(B) any student with respect to any error in a social

security number, unless such error was a result of fraud on the

part of the student.

(q) Verification of income data

(1) Confirmation with IRS

The Secretary of Education, in cooperation with the Secretary

of the Treasury, is authorized to confirm with the Internal

Revenue Service the adjusted gross income, Federal income taxes

paid, filing status, and exemptions reported by applicants

(including parents) under this subchapter and part C of

subchapter I of chapter 34 of title 42 on their Federal income

tax returns for the purpose of verifying the information reported

by applicants on student financial aid applications.

(2) Notification

The Secretary shall establish procedures under which an

applicant is notified that the Internal Revenue Service will

disclose to the Secretary tax return information as authorized

under section 6103(l)(13) of title 26.

(r) Suspension of eligibility for drug-related offenses

(1) In general

A student who has been convicted of any offense under any

Federal or State law involving the possession or sale of a

controlled substance shall not be eligible to receive any grant,

loan, or work assistance under this subchapter and part C of

subchapter I of chapter 34 of title 42 during the period

beginning on the date of such conviction and ending after the

interval specified in the following table:

---------------------------------------------------------------------

---------------------------------------------------------------------

If convicted of an offense involving:

The possession of a controlled Ineligibility period is:

substance:

First offense 1 year

Second offense 2 years

Third offense Indefinite.

The sale of a controlled Ineligibility period is:

substance:

First offense 2 years

Second offense Indefinite.

-------------------------------

(2) Rehabilitation

A student whose eligibility has been suspended under paragraph

(1) may resume eligibility before the end of the ineligibility

period determined under such paragraph if -

(A) the student satisfactorily completes a drug

rehabilitation program that -

(i) complies with such criteria as the Secretary shall

prescribe in regulations for purposes of this paragraph; and

(ii) includes two unannounced drug tests; or

(B) the conviction is reversed, set aside, or otherwise

rendered nugatory.

(3) Definitions

In this subsection, the term ''controlled substance'' has the

meaning given the term in section 802(6) of title 21.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 484, as added Pub. L. 99-498, title

IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1479; amended Pub. L.

99-603, title I, Sec. 121(a)(3), Nov. 6, 1986, 100 Stat. 3388; Pub.

L. 100-50, Sec. 15(7)-(9), June 3, 1987, 101 Stat. 356, 357; Pub.

L. 100-369, Sec. 1, 2, 6, July 18, 1988, 102 Stat. 835, 836; Pub.

L. 100-525, Sec. 2(g), Oct. 24, 1988, 102 Stat. 2611; Pub. L.

101-508, title III, Sec. 3005(a), Nov. 5, 1990, 104 Stat. 1388-27;

Pub. L. 102-26, Sec. 2(b), (c)(2), (d)(2)(A), Apr. 9, 1991, 105

Stat. 123, 124; Pub. L. 102-73, title VIII, Sec. 801(a), July 25,

1991, 105 Stat. 359; Pub. L. 102-325, title IV, Sec. 484(a),

(b)(1), (c)-(h), July 23, 1992, 106 Stat. 615-619; Pub. L. 103-208,

Sec. 2(h)(13)-(25), Dec. 20, 1993, 107 Stat. 2476, 2477; Pub. L.

103-382, title III, Sec. 360A, Oct. 20, 1994, 108 Stat. 3969; Pub.

L. 104-208, div. C, title V, Sec. 507(b), Sept. 30, 1996, 110

Stat. 3009-673; Pub. L. 105-244, title IV, Sec. 483(a)-(f)(1), Oct.

7, 1998, 112 Stat. 1735, 1736.)

-REFTEXT-

REFERENCES IN TEXT

Section 1078-1 of this title, referred to in subsec. (b)(2), was

repealed by Pub. L. 103-66, title IV, Sec. 4047(b)-(d), Aug. 10,

1993, 107 Stat. 364, eff. July 1, 1994, except with respect to

loans provided under that section as it existed prior to Aug. 10,

1993. Subsequently, a new section 1078-1, relating to voluntary

flexible agreements with guaranty agencies, was enacted by Pub. L.

105-244, title IV, Sec. 418, Oct. 7, 1998, 112 Stat. 1691.

Subsection (h) of this section, referred to in subsecs. (h)(2),

(3) and (i), was redesignated subsec. (g) of this section by Pub.

L. 103-208, Sec. 2(h)(25), Dec. 20, 1993, 107 Stat. 2477.

Section 2471 of this title, referred to in subsec. (l)(1)(B)(i),

was omitted in the general amendment of chapter 44 (Sec. 2301 et

seq.) of this title by Pub. L. 105-332, Sec. 1(b), Oct. 31, 1998,

112 Stat. 3076.

Section 1113 of Public Law 97-252, referred to in subsec. (n),

amended section 462 of Title 50, Appendix, War and National

Defense, and enacted provisions set out as a note under section 462

of Title 50, Appendix.

This chapter, referred to in subsec. (o), 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.

-MISC2-

PRIOR PROVISIONS

A prior section 1091, Pub. L. 89-329, title IV, Sec. 484, as

added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.

1448; Pub. L. 99-272, title XVI, Sec. 16032(a), (b), Apr. 7, 1986,

100 Stat. 354, related to student eligibility for assistance, prior

to the general revision of this part by Pub. L. 99-498.

Another prior section 1091, Pub. L. 89-329, title V, Sec. 501,

Nov. 8, 1965, 79 Stat. 1254; Pub. L. 90-35, Sec. 2(c), June 29,

1967, 81 Stat. 82; Pub. L. 92-318, title I, Sec. 141(b)(1), June

23, 1972, 86 Stat. 285, set forth statement of purpose and

authorization of appropriations for education professions

development program, prior to repeal effective Sept. 30, 1976, by

Pub. L. 94-482, title I, Sec. 151(a)(2), (b), Oct. 12, 1976, 90

Stat. 2151.

AMENDMENTS

1998 - Subsec. (a)(4). Pub. L. 105-244, Sec. 483(a)(1),

substituted ''the Secretary, as part of the original financial aid

application process, a certification,'' for ''the institution of

higher education which the student intends to attend, or is

attending (or in the case of a loan or loan guarantee with the

lender), a document'' in introductory provisions.

Subsec. (a)(5). Pub. L. 105-244, Sec. 483(a)(2), substituted ''a

citizen of any one of the Freely Associated States'' for ''or a

permanent resident of the Trust Territory of the Pacific Islands,

Guam, or the Northern Mariana Islands''.

Subsec. (d). Pub. L. 105-244, Sec. 483(b), struck out ''either''

after ''shall meet'' in introductory provisions and added par. (3).

Subsec. (j). Pub. L. 105-244, Sec. 483(c), amended heading and

text of subsec. (j) generally. Prior to amendment, text read as

follows: ''Notwithstanding any other provision of law, a student

shall be eligible, if otherwise qualified, for assistance under

subparts 1, 3, and 6, and division 1 of subpart 2, of part A of

this subchapter, and part C of subchapter I of chapter 34 of title

42, if the student is otherwise qualified and -

''(1) is a citizen of the Federated States of Micronesia, the

Republic of the Marshall Islands, or the Republic of Palau, and

attends an institution of higher education in a State or a public

or nonprofit private institution of higher education in the

Federated States of Micronesia, the Republic of the Marshall

Islands, or the Republic of Palau; or

''(2) meets the requirements of subsection (a)(5) of this

section and attends a public or nonprofit private institution of

higher education in the Federated States of Micronesia, the

Republic of the Marshall Islands, or the Republic of Palau.''

Subsec. (l)(1). Pub. L. 105-244, Sec. 483(d), amended heading and

text of par. (1) generally. Prior to amendment, text read as

follows: ''A student enrolled in a course of instruction at an

eligible institution of higher education (other than an institution

that meets the definition in section 2471(4)(C) of this title) that

is offered in whole or in part through telecommunications and leads

to a recognized associate, bachelor, or graduate degree conferred

by such institution shall not be considered to be enrolled in

correspondence courses unless the total amount of

telecommunications and correspondence courses at such institution

equals or exceeds 50 percent of such courses.''

Subsec. (q). Pub. L. 105-244, Sec. 483(e), added subsec. (q).

Subsec. (r). Pub. L. 105-244, Sec. 483(f)(1), added subsec. (r).

1996 - Subsec. (g)(4)(B)(i). Pub. L. 104-208 amended cl. (i)

generally. Prior to amendment, cl. (i) read as follows: ''the

institution shall transmit to the Immigration and Naturalization

Service photostatic or other similar copies of such documents for

official verification,''.

1994 - Subsec. (j). Pub. L. 103-382 amended heading and text of

subsec. (j) generally. Prior to amendment, text read as follows:

''Notwithstanding any other provision of law, a student who meets

the requirements of paragraph (a)(5) of this section or who is a

resident of the freely associated states, and who attends a public

or nonprofit institution of higher education located in any of the

freely associated states rather than a State, shall be eligible, if

otherwise qualified, for assistance under subpart 1, 2, or 4 of

part A of this subchapter or part C of subchapter I of chapter 34

of title 42.''

1993 - Subsec. (a)(4)(B). Pub. L. 103-208, Sec. 2(h)(13),

inserted '', except that the provisions of this subparagraph shall

not apply to a student from the Republic of the Marshall Islands,

the Federated States of Micronesia, or the Republic of Palau''

after ''number''.

Subsec. (a)(5). Pub. L. 103-208, Sec. 2(h)(14), substituted

''able to provide evidence from the Immigration and Naturalization

Service that he or she is in the United States for other than a

temporary purpose with the intention of becoming a citizen or

permanent resident'' for ''in the United States for other than a

temporary purpose and able to provide evidence from the Immigration

and Naturalization Service of his or her intent to become a

permanent resident''.

Subsec. (b)(2)(C). Pub. L. 103-208, Sec. 2(h)(15), added subpar.

(C).

Subsec. (b)(3). Pub. L. 103-208, Sec. 2(h)(16), substituted

''part B or C of this subchapter'' for ''part B of this

subchapter'' in closing provisions.

Subsec. (f). Pub. L. 103-208, Sec. 2(h)(17), (25), redesignated

subsec. (g) as (f) and struck out heading and text of former

subsec. (f). Text read as follows: ''Notwithstanding any other

provision of law, the Secretary may not require, or prescribe

regulations that require, institutions to verify the accuracy of

data used to determine the eligibility for any program under this

subchapter and part C of subchapter I of chapter 34 of title 42 for

more than 30 percent of the applicants in any award year. In

carrying out the provisions of this subsection no eligible

institution shall be required to verify more than 30 percent of

such applicants in any award year. Nothing in this subsection

shall preclude the Secretary from verifying all applications for

aid through the use of any means available, including through the

exchange of information with any other Federal agency.''

Subsec. (g). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec.

(h) as (g). Former subsec. (g) redesignated (f).

Pub. L. 103-208, Sec. 2(h)(18), which directed insertion of a

comma after '', Part C'' wherever appearing, was executed by

inserting a comma after '', part C'' wherever appearing, to reflect

the probable intent of Congress.

Subsec. (h). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec.

(i) as (h). Former subsec. (h) redesignated (g).

Pub. L. 103-208, Sec. 2(h)(19), substituted ''constitute'' for

''constitutes'' in introductory provisions of par. (4)(B).

Subsec. (i). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec.

(j) as (i). Former subsec. (i) redesignated (h).

Pub. L. 103-208, Sec. 2(h)(22), struck out par. (4) which read as

follows: ''because of a fair hearing process described in

subsection (h)(5)(B) of this section.''

Pub. L. 103-208, Sec. 2(h)(21), substituted ''(h)(4)(B)(i)'' for

''(h)(4)(B)(ii)'' and ''student.'' for ''student, or'' in par. (3).

Pub. L. 103-208, Sec. 2(h)(20), inserted ''or'' after

''documentation,'' and substituted ''(h)(4)(A)(i)'' for

''(h)(4)(A)(ii)'' in par. (2).

Subsecs. (j) to (m). Pub. L. 103-208, Sec. 2(h)(25), redesignated

subsecs. (k) to (n) as (j) to (m), respectively. Former subsec.

(j) redesignated (i).

Subsec. (n). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec.

(o) as (n). Former subsec. (n) redesignated (m).

Pub. L. 103-208, Sec. 2(h)(23), substituted ''parts B, C,'' for

''part B, C,''.

Subsecs. (o), (p). Pub. L. 103-208, Sec. 2(h)(25), redesignated

subsecs. (p) and (q) as (o) and (p), respectively. Former subsec.

(o) redesignated (n).

Subsec. (q). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec.

(q) as (p).

Pub. L. 103-208, Sec. 2(h)(24), substituted ''documented evidence

of a social security number that is determined by the institution

to be correct'' for ''a correct social security number'' in par.

(2).

1992 - Subsec. (a)(1). Pub. L. 102-325, Sec. 484(a)(1), inserted

''(including a program of study abroad approved for credit by the

eligible institution at which such student is enrolled)'' after

''or other program''.

Subsec. (a)(4). Pub. L. 102-325, Sec. 484(a)(2), added par. (4)

and struck out former par. (4) which read as follows: ''file with

the institution of higher education which the student intends to

attend, or is attending (or in the case of a loan or loan guarantee

with the lender), a statement of educational purpose (which need

not be notarized but which shall include such student's social

security number or, if the student does not have a social security

number, such student's student identification number) stating that

the money attributable to such grant, loan, or loan guarantee will

be used solely for expenses related to attendance or continued

attendance at such institution; and''.

Subsec. (b)(4)(B). Pub. L. 102-325, Sec. 484(b)(1)(A),

substituted ''part B, C, or D of this subchapter or work-study

assistance under part C of subchapter I of chapter 34 of title 42''

for ''part B of this subchapter'' in concluding provisions.

Subsec. (b)(5). Pub. L. 102-325, Sec. 484(b)(1)(B), added par.

(5).

Subsec. (d). Pub. L. 102-325, Sec. 484(c), amended subsec. (d)

generally. Prior to amendment, subsec. (d) read as follows: ''In

order for a student who does not have a certificate of graduation

from a school providing secondary education, or the recognized

equivalent of such certificate, to be eligible for any assistance

under subparts 1, 2, and 3 of part A and parts B, C, and D of this

subchapter and part C of subchapter I of chapter 34 of title 42,

the student shall pass an independently administered examination

approved by the Secretary.''

Subsec. (f). Pub. L. 102-325, Sec. 484(d), inserted at end

''Nothing in this subsection shall preclude the Secretary from

verifying all applications for aid through the use of any means

available, including through the exchange of information with any

other Federal agency.''

Subsec. (g). Pub. L. 102-325, Sec. 484(e), designated existing

provisions as par. (1), inserted '', part C'' after ''part B'' in

two places and ''fraudulently'' before ''borrowed'' in two places,

and added par. (2).

Subsec. (h). Pub. L. 102-325, Sec. 484(f), amended subsec. (h)

generally. Prior to amendment, subsec. (h) contained pars. (1) to

(6) relating to requirements for verification of student

immigration status.

Subsec. (k). Pub. L. 102-325, Sec. 484(h), made technical

amendment to directory language of Pub. L. 102-73, Sec. 801(a). See

1991 Amendment note below.

Subsecs. (l) to (q). Pub. L. 102-325, Sec. 484(g), added subsecs.

(l) to (q).

1991 - Subsec. (a)(1). Pub. L. 102-26, Sec. 2(c)(2), inserted

before semicolon at end '', and not be enrolled in an elementary or

secondary school''.

Subsec. (d). Pub. L. 102-26, Sec. 2(d)(2)(A), repealed Pub. L.

101-508, Sec. 3005(a). See 1990 Amendment note below.

Pub. L. 102-26, Sec. 2(b), amended subsec. (d) generally. Prior

to amendment, subsec. (d) read as follows: ''A student who is

admitted on the basis of the ability to benefit from the education

or training in order to remain eligible for any grant, loan, or

work assistance under this subchapter and part C of subchapter I of

chapter 34 of title 42 shall -

''(1) receive the general education diploma prior to the

student's certification or graduation from the program of study,

or by the end of the first year of the course of study, whichever

is earlier;

''(2) be counseled prior to admission and be enrolled in and

successfully complete the institutionally prescribed program of

remedial or developmental education not to exceed one academic

year or its equivalent; or

''(3)(A) be administered a nationally recognized, standardized,

or industry developed test, subject to criteria developed by the

appropriate accrediting association, measuring the applicant's

aptitude to complete successfully the program to which the

applicant has applied; and

''(B) with respect to applicants who are unable to satisfy the

institutions' admissions testing requirements specified in

subparagraph (A), be enrolled in and successfully complete an

institutionally prescribed program or course of remedial or

developmental education not to exceed one academic year or its

equivalent.

In order to be eligible for assistance a student cannot be enrolled

in either an elementary or a secondary school.''

Subsec. (k). Pub. L. 102-73, as amended by Pub. L. 102-325, Sec.

484(h), added subsec. (k).

1990 - Subsec. (d). Pub. L. 101-508, which amended subsec. (d)

generally to read: ''In order for a student who is admitted on the

basis of ability to benefit from the education or training offered

to be eligible for any grant, loan, or work assistance under this

subchapter and part C of subchapter I of chapter 34 of title 42,

the student shall, prior to enrollment, pass an independently

administered examination approved by the Secretary.'', was repealed

by Pub. L. 102-26, Sec. 2(d)(2)(A). See Construction of 1991

Amendment note below.

1988 - Subsec. (a)(1). Pub. L. 100-369, Sec. 6(1), substituted

''subsections (b)(3) and (b)(4)'' for ''subsection (b)(2)''.

Subsec. (b)(1). Pub. L. 100-369, Sec. 1(1), substituted ''section

1078-2 or 1078-3'' for ''section 1078-1, 1078-2, or 1078-3''.

Subsec. (b)(1)(A). Pub. L. 100-369, Sec. 1(2), added subpar. (A)

and struck out former subpar. (A) which read as follows: ''have

received a determination of eligibility or ineligibility for a

grant under such subpart 1 for such period of enrollment; or''.

Subsec. (b)(2), (3). Pub. L. 100-369, Sec. 2, added par. (2) and

redesignated former par. (2) as (3).

Subsec. (b)(4). Pub. L. 100-369, Sec. 6(2), added par. (4).

Subsecs. (c) to (e), (h) to (j). Pub. L. 100-525 redesignated

subsecs. (c) to (e) enacted by Pub. L. 99-603 as (h) to (j),

respectively, and inserted headings, substituted references to

subsec. (h) for references to subsec. (c) wherever appearing, and

in closing provisions of subsec. (j) substituted ''date'' for

''date of''.

1987 - Subsec. (a)(1). Pub. L. 100-50, Sec. 15(7)(A), inserted

'', except as provided in subsection (b)(2) of this section''

before semicolon at end.

Subsec. (b). Pub. L. 100-50, Sec. 15(7)(B)-(D), designated

existing provision as par. (1), redesignated former pars. (1) and

(2) as subpars. (A) and (B), respectively, and added par. (2).

Subsec. (d). Pub. L. 100-50, Sec. 15(8), added pars. (2) and (3)

and last sentence relating to ineligibility for assistance if a

student is enrolled in either an elementary or a secondary school,

and struck out former par. (2) which read as follows:

''(A) be counseled prior to admissions or be administered a

nationally recognized standardized or industry developed test,

subject to criteria developed by the appropriate accrediting

association, measuring the applicant's aptitude to complete

successfully the program to which he has applied; and

''(B) with respect to applicants who are unable to satisfy the

institution's admissions testing requirements specified in

subparagraph (A), be enrolled in an institutionally prescribed

program or course of remedial or developmental education, not to

exceed one academic year or its equivalent.''

Subsec. (f). Pub. L. 100-50, Sec. 15(9), inserted at end ''In

carrying out provisions of this subsection no eligible institution

shall be required to verify more than 30 percent of such

applications in any award year.''

1986 - Subsec. (c). Pub. L. 99-603 added subsec. (c) requiring

immigration status verification.

Subsec. (d). Pub. L. 99-603 added subsec. (d) limiting

enforcement actions against institutions.

Subsec. (e). Pub. L. 99-603 added subsec. (e) relating to

validity of loan guarantees for loan payments made before

completion of immigration status verification.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by section 483(a)-(e) of 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.

Pub. L. 105-244, title IV, Sec. 483(f)(2), Oct. 7, 1998, 112

Stat. 1737, provided that: ''The amendment made by paragraph (1)

(amending this section), regarding suspension of eligibility for

drug-related offenses, shall apply with respect to financial

assistance to cover the costs of attendance for periods of

enrollment beginning after the date of enactment of this Act (Oct.

7, 1998).''

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by section 484(a), (b)(1)(B), and (c) to (h) of Pub. L.

102-325 effective July 23, 1992, except that subsec. (m)(1) of this

section, relating to proportion of courses permitted to be

correspondence courses, as added by such amendment, effective on

and after Oct. 1, 1992, see section 498 of Pub. L. 102-325, set out

as a note under section 1088 of this title, and subsec. (n) of this

section, relating to eligibility of students with first

baccalaureate or professional degree for assistance, as added by

such amendment, effective on and after Dec. 1, 1987, see section

484(i) of Pub. L. 102-325, set out below.

Section 484(b)(2) of Pub. L. 102-325 provided that: ''The

amendments made by paragraph (1)(A) of this subsection (amending

this section) shall be effective on and after December 1, 1987.''

Section 484(i) of Pub. L. 102-325, as added by Pub. L. 103-208,

Sec. 2(k)(8), Dec. 20, 1993, 107 Stat. 2486, provided that: ''The

amendments made by subsection (g) (section 484(g) of Pub. L.

102-325) with respect to the addition of subsection (n) (adding

subsec. (n) of this section) shall be effective on and after

December 1, 1987.''

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by Pub. L. 102-26 applicable to any grant, loan, or

work assistance to cover the cost of instruction for periods of

enrollment beginning on or after July 1, 1991, see section 2(d)(1)

of Pub. L. 102-26, set out as a note under section 1085 of this

title.

EFFECTIVE DATE OF 1988 AMENDMENTS

Amendment by Pub. L. 100-525 effective as if included in

enactment of Immigration Reform and Control Act of 1986, Pub. L.

99-603, see section 2(s) of Pub. L. 100-525, set out as a note

under section 1101 of Title 8, Aliens and Nationality.

Section 13 of Pub. L. 100-369 provided that:

''(a) General Rule. - Except as otherwise provided, the

amendments made by this Act to title IV of the Higher Education Act

of 1965 (amending this section and section 1078-1 of this title)

shall be effective for any loan for which the eligibility of the

borrower is certified by the institution 30 days after the date of

enactment of this Act (July 18, 1988).

''(b) Special Rules. - (1) The amendments made by section 5

(amending this section and sections 1077 and 1078 of this title)

shall be effective with respect to loans made on or after October

1, 1988.

''(2) The amendments made by sections 6, 7, 8, 9, 10, 11, and 12

(amending this section, sections 1058, 1061, 1062, 1070a-1,

1070a-3, 1070a-4, 1070a-6, 1071, 1077, 1078, 1087-2, 1087dd,

1087ee, 1087nn, 1087ss, 1087vv, 1132d-1, 1132g-1, and 1134m of this

title, and section 1905 of Title 48, Territories and Insular

Possessions) shall take effect on the date of enactment of this Act

(July 18, 1988).''

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-603 effective Oct. 1, 1988, with certain

exceptions and qualifications, see section 121(c)(3), (4) of Pub.

L. 99-603, set out as a note under section 1320b-7 of Title 42, The

Public Health and Welfare.

EFFECTIVE DATE

Section effective Oct. 17, 1986, except as otherwise provided,

see section 2 of Pub. L. 99-498, set out as a note under section

1001 of this title.

Section 407(b) of Pub. L. 99-498 provided that:

''(1) Sections 483(e) and 484(d) of the Act (20 U.S.C. 1090(e),

1091(d)) as amended by this section shall apply to student

assistance awarded for periods of enrollment beginning on or after

July 1, 1987.

''(2) The changes made in section 484(a)(1) of the Act (20 U.S.C.

1091(a)(1)) shall apply to student assistance awarded for periods

of enrollment beginning on or after July 1, 1987.

''(3) Section 484(c) of the Act (20 U.S.C. 1091(c)) as amended by

this section shall apply only to student assistance awarded for

periods of enrollment beginning on or after July 1, 1987, to

individuals who were not awarded such assistance for any preceding

period of enrollment.

''(4) Sections 484(f), 485(b), and 487(a)(10) of the Act (20

U.S.C. 1091(f), 1092(b), 1094(a)(10)) as amended by this section

shall apply only to periods of enrollment beginning on or after

July 1, 1987.''

CONSTRUCTION OF 1991 AMENDMENT

For repeal of section 3005 of Pub. L. 101-508 and application of

subsec. (d) of this section as if such section 3005 had not been

enacted, see section 2(d)(2)(A) of Pub. L. 102-26, set out as a

note under section 1088 of this title.

-TRANS-

ABOLITION OF IMMIGRATION AND NATURALIZATION SERVICE AND TRANSFER OF

FUNCTIONS

For abolition of Immigration and Naturalization Service, transfer

of functions, and treatment of related references, see note set out

under section 1551 of Title 8, Aliens and Nationality.

-MISC5-

SATISFACTORY PROGRESS

Section 1301 of Pub. L. 99-498, as amended by Pub. L. 100-50,

Sec. 23(1), June 3, 1987, 101 Stat. 362, directed Secretary,

through the Office of Educational Research and Improvement, to

conduct survey over 5-year period ending Sept. 30, 1991, on impact

on grades of students of amendments made by Pub. L. 99-498 to

subsec. (c) of this section and to submit annual reports to

Congress of survey, prior to repeal by Pub. L. 105-332, Sec. 6(a),

Oct. 31, 1998, 112 Stat. 3127.

DENIAL OF STUDENT ASSISTANCE TO CERTAIN NONCITIZENS

Section 1361 of Pub. L. 99-498 established in Department of

Education the Alien Youth Education Opportunity Panel and provided

for Panel's composition, duties, reports, administrative and

clerical support, compensation and expenses, and access to

information, prior to repeal by Pub. L. 105-332, Sec. 6(a), Oct.

31, 1998, 112 Stat. 3127.

FINANCIAL AID TO STUDENTS NOT DEEMED INCOME OR RESOURCES FOR

PURPOSES OF CERTAIN SOCIAL SECURITY ACT PROGRAMS

Pub. L. 90-575, title V, Sec. 507, Oct. 16, 1968, 82 Stat. 1063,

as amended by Pub. L. 96-88, title III, Sec. 301(a)(1), Oct. 17,

1979, 93 Stat. 677, provided that: ''For the purpose of any program

assisted under title I, IV, X, XIV, XVI, or XIX of the Social

Security Act (subchapters I, IV, X, XIV, XVI, or XIX of chapter 7

of Title 42, The Public Health and Welfare), no grant or loan to

any undergraduate student for educational purposes made or insured

under any program administered by the Secretary of Education shall

be considered to be income or resources.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1002, 1070, 1070a,

1070a-24, 1070a-34, 1070b-1, 1070b-2, 1077, 1078, 1078-2, 1078-6,

1078-8, 1087d, 1087dd, 1092, 1093, 1094, 1096, 1134, 1135c of this

title; title 26 section 25A; title 42 sections 2753, 3796d-4,

12591, 12602.

-CITE-

20 USC Sec. 1091a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1091a. Statute of limitations, and State court judgments

-STATUTE-

(a) In general

(1) It is the purpose of this subsection to ensure that

obligations to repay loans and grant overpayments are enforced

without regard to any Federal or State statutory, regulatory, or

administrative limitation on the period within which debts may be

enforced.

(2) Notwithstanding any other provision of statute, regulation,

or administrative limitation, no limitation shall terminate the

period within which suit may be filed, a judgment may be enforced,

or an offset, garnishment, or other action initiated or taken by -

(A) an institution that receives funds under this subchapter

and part C of subchapter I of chapter 34 of title 42 that is

seeking to collect a refund due from a student on a grant made,

or work assistance awarded, under this subchapter and part C of

subchapter I of chapter 34 of title 42;

(B) a guaranty agency that has an agreement with the Secretary

under section 1078(c) of this title that is seeking the repayment

of the amount due from a borrower on a loan made under part B of

this subchapter after such guaranty agency reimburses the

previous holder of the loan for its loss on account of the

default of the borrower;

(C) an institution that has an agreement with the Secretary

pursuant to section 1087c or 1087cc(a) of this title that is

seeking the repayment of the amount due from a borrower on a loan

made under part C or D of this subchapter after the default of

the borrower on such loan; or

(D) the Secretary, the Attorney General, or the administrative

head of another Federal agency, as the case may be, for payment

of a refund due from a student on a grant made under this

subchapter and part C of subchapter I of chapter 34 of title 42,

or for the repayment of the amount due from a borrower on a loan

made under this subchapter and part C of subchapter I of chapter

34 of title 42 that has been assigned to the Secretary under this

subchapter and part C of subchapter I of chapter 34 of title 42.

(b) Assessment of costs and other charges

Notwithstanding any provision of State law to the contrary -

(1) a borrower who has defaulted on a loan made under this

subchapter and part C of subchapter I of chapter 34 of title 42

shall be required to pay, in addition to other charges specified

in this subchapter and part C of subchapter I of chapter 34 of

title 42 reasonable collection costs; and

(2) in collecting any obligation arising from a loan made under

part B of this subchapter, a guaranty agency or the Secretary

shall not be subject to a defense raised by any borrower based on

a claim of infancy.

(c) State court judgments

A judgment of a State court for the recovery of money provided as

grant, loan, or work assistance under this subchapter and part C of

subchapter I of chapter 34 of title 42 that has been assigned or

transferred to the Secretary under this subchapter and part C of

subchapter I of chapter 34 of title 42 may be registered in any

district court of the United States by filing a certified copy of

the judgment and a copy of the assignment or transfer. A judgment

so registered shall have the same force and effect, and may be

enforced in the same manner, as a judgment of the district court of

the district in which the judgment is registered.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 484A, as added Pub. L. 99-498,

title IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1482; amended Pub.

L. 102-26, Sec. 3(a), Apr. 9, 1991, 105 Stat. 124; Pub. L. 105-244,

title IV, Sec. 484, Oct. 7, 1998, 112 Stat. 1737.)

-MISC1-

PRIOR PROVISIONS

A prior section 1091a, Pub. L. 89-329, title IV, Sec. 484A, as

added Pub. L. 99-272, title XVI, Sec. 16033, Apr. 7, 1986, 100

Stat. 355, related to statute of limitations, collection costs, and

defense of infancy, prior to the general revision of this part by

Pub. L. 99-498.

Another prior section 1091a, Pub. L. 89-329, title V, Sec. 502,

as added Pub. L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 82;

amended Pub. L. 91-230, title IV, Sec. 401(h)(4), title VIII, Sec.

802, Apr. 13, 1970, 84 Stat. 174, 190; Pub. L. 92-318, title I,

Sec. 141(c)(1)(A), June 23, 1972, 86 Stat. 285, established the

National Advisory Council on Education Professions Development and

set forth functions, composition, etc., of the Council, prior to

repeal by Pub. L. 94-482, title I, Sec. 151(a)(2), (b), Oct. 12,

1976, 90 Stat. 2151, effective Sept. 30, 1976.

AMENDMENTS

1998 - Pub. L. 105-244, Sec. 484(1), inserted '', and State court

judgments'' after ''limitations'' in section catchline.

Subsec. (c). Pub. L. 105-244, Sec. 484(2), added subsec. (c).

1991 - Subsec. (a). Pub. L. 102-26 amended subsec. (a) generally,

substituting provisions eliminating statute of limitations for

student loan collections for provisions establishing six year

limitations period for collection of such loans.

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.

EFFECTIVE DATE OF 1991 AMENDMENT

Section 3(c) of Pub. L. 102-26, as amended by Pub. L. 102-325,

title XV, Sec. 1551, July 23, 1992, 105 Stat. 838, provided that:

''The amendments made by this section (amending this section) shall

be effective as if enacted by the Consolidated Omnibus Budget

Reconciliation Act of 1985 (Public Law 99-272), and shall apply to

any actions pending on or after the date of enactment of the Higher

Education Technical Amendments of 1991 (Apr. 9, 1991).''

-CITE-

20 USC Sec. 1091b 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1091b. Institutional refunds

-STATUTE-

(a) Return of title IV funds

(1) In general

If a recipient of assistance under this subchapter and part C

of subchapter I of chapter 34 of title 42 withdraws from an

institution during a payment period or period of enrollment in

which the recipient began attendance, the amount of grant or loan

assistance (other than assistance received under part C of

subchapter I of chapter 34 of title 42) to be returned to the

title IV programs is calculated according to paragraph (3) and

returned in accordance with subsection (b) of this section.

(2) Leave of absence

(A) Leave not treated as withdrawal

In the case of a student who takes a leave of absence from an

institution for not more than a total of 180 days in any

12-month period, the institution may consider the student as

not having withdrawn from the institution during the leave of

absence, and not calculate the amount of grant and loan

assistance provided under this subchapter and part C of

subchapter I of chapter 34 of title 42 that is to be returned

in accordance with this section if -

(i) the institution has a formal policy regarding leaves of

absence;

(ii) the student followed the institution's policy in

requesting a leave of absence; and

(iii) the institution approved the student's request in

accordance with the institution's policy.

(B) Consequences of failure to return

If a student does not return to the institution at the

expiration of an approved leave of absence that meets the

requirements of subparagraph (A), the institution shall

calculate the amount of grant and loan assistance provided

under this subchapter and part C of subchapter I of chapter 34

of title 42 that is to be returned in accordance with this

section based on the day the student withdrew (as determined

under subsection (c) of this section).

(3) Calculation of amount of title IV assistance earned

(A) In general

The amount of grant or loan assistance under this subchapter

and part C of subchapter I of chapter 34 of title 42 that is

earned by the recipient for purposes of this section is

calculated by -

(i) determining the percentage of grant and loan assistance

under this subchapter and part C of subchapter I of chapter

34 of title 42 that has been earned by the student, as

described in subparagraph (B); and

(ii) applying such percentage to the total amount of such

grant and loan assistance that was disbursed (and that could

have been disbursed) to the student, or on the student's

behalf, for the payment period or period of enrollment for

which the assistance was awarded, as of the day the student

withdrew.

(B) Percentage earned

For purposes of subparagraph (A)(i), the percentage of grant

or loan assistance under this subchapter and part C of

subchapter I of chapter 34 of title 42 that has been earned by

the student is -

(i) equal to the percentage of the payment period or period

of enrollment for which assistance was awarded that was

completed (as determined in accordance with subsection (d) of

this section) as of the day the student withdrew, provided

that such date occurs on or before the completion of 60

percent of the payment period or period of enrollment; or

(ii) 100 percent, if the day the student withdrew occurs

after the student has completed 60 percent of the payment

period or period of enrollment.

(C) Percentage and amount not earned

For purposes of subsection (b) of this section, the amount of

grant and loan assistance awarded under this subchapter and

part C of subchapter I of chapter 34 of title 42 that has not

been earned by the student shall be calculated by -

(i) determining the complement of the percentage of grant

or loan assistance under this subchapter and part C of

subchapter I of chapter 34 of title 42 that has been earned

by the student described in subparagraph (B); and

(ii) applying the percentage determined under clause (i) to

the total amount of such grant and loan assistance that was

disbursed (and that could have been disbursed) to the

student, or on the student's behalf, for the payment period

or period of enrollment, as of the day the student withdrew.

(4) Differences between amounts earned and amounts received

(A) In general

If the student has received less grant or loan assistance

than the amount earned as calculated under subparagraph (A) of

paragraph (3), the institution of higher education shall comply

with the procedures for late disbursement specified by the

Secretary in regulations.

(B) Return

If the student has received more grant or loan assistance

than the amount earned as calculated under paragraph (3)(A),

the unearned funds shall be returned by the institution or the

student, or both, as may be required under paragraphs (1) and

(2) of subsection (b) of this section, to the programs under

this subchapter and part C of subchapter I of chapter 34 of

title 42 in the order specified in subsection (b)(3) of this

section.

(b) Return of title IV program funds

(1) Responsibility of the institution

The institution shall return, in the order specified in

paragraph (3), the lesser of -

(A) the amount of grant and loan assistance awarded under

this subchapter and part C of subchapter I of chapter 34 of

title 42 that has not been earned by the student, as calculated

under subsection (a)(3)(C) of this section; or

(B) an amount equal to -

(i) the total institutional charges incurred by the student

for the payment period or period of enrollment for which such

assistance was awarded; multiplied by

(ii) the percentage of grant and loan assistance awarded

under this subchapter and part C of subchapter I of chapter

34 of title 42 that has not been earned by the student, as

described in subsection (a)(3)(C)(i) of this section.

(2) Responsibility of the student

(A) In general

The student shall return assistance that has not been earned

by the student as described in subsection (a)(3)(C)(ii) of this

section in the order specified in paragraph (3) minus the

amount the institution is required to return under paragraph

(1).

(B) Special rule

The student (or parent in the case of funds due to a loan

borrowed by a parent under part B or C of this subchapter)

shall return or repay, as appropriate, the amount determined

under subparagraph (A) to -

(i) a loan program under this subchapter and part C of

subchapter I of chapter 34 of title 42 in accordance with the

terms of the loan; and

(ii) a grant program under this subchapter and part C of

subchapter I of chapter 34 of title 42, as an overpayment of

such grant and shall be subject to -

(I) repayment arrangements satisfactory to the

institution; or

(II) overpayment collection procedures prescribed by the

Secretary.

(C) Requirement

Notwithstanding subparagraphs (A) and (B), a student shall

not be required to return 50 percent of the grant assistance

received by the student under this subchapter and part C of

subchapter I of chapter 34 of title 42, for a payment period or

period of enrollment, that is the responsibility of the student

to repay under this section.

(3) Order of return of title IV funds

(A) In general

Excess funds returned by the institution or the student, as

appropriate, in accordance with paragraph (1) or (2),

respectively, shall be credited to outstanding balances on

loans made under this subchapter and part C of subchapter I of

chapter 34 of title 42 to the student or on behalf of the

student for the payment period or period of enrollment for

which a return of funds is required. Such excess funds shall

be credited in the following order:

(i) To outstanding balances on loans made under section

1078-8 of this title for the payment period or period of

enrollment for which a return of funds is required.

(ii) To outstanding balances on loans made under section

1078 of this title for the payment period or period of

enrollment for which a return of funds is required.

(iii) To outstanding balances on unsubsidized loans (other

than parent loans) made under part C of this subchapter for

the payment period or period of enrollment for which a return

of funds is required.

(iv) To outstanding balances on subsidized loans made under

part C of this subchapter for the payment period or period of

enrollment for which a return of funds is required.

(v) To outstanding balances on loans made under part D of

this subchapter for the payment period or period of

enrollment for which a return of funds is required.

(vi) To outstanding balances on loans made under section

1078-2 of this title for the payment period or period of

enrollment for which a return of funds is required.

(vii) To outstanding balances on parent loans made under

part C of this subchapter for the payment period or period of

enrollment for which a return of funds is required.

(B) Remaining excesses

If excess funds remain after repaying all outstanding loan

amounts, the remaining excess shall be credited in the

following order:

(i) To awards under subpart 1 of part A of this subchapter

for the payment period or period of enrollment for which a

return of funds is required.

(ii) To awards under subpart 3 of part A of this subchapter

for the payment period or period of enrollment for which a

return of funds is required.

(iii) To other assistance awarded under this subchapter and

part C of subchapter I of chapter 34 of title 42 for which a

return of funds is required.

(c) Withdrawal date

(1) In general

In this section, the term ''day the student withdrew'' -

(A) is the date that the institution determines -

(i) the student began the withdrawal process prescribed by

the institution;

(ii) the student otherwise provided official notification

to the institution of the intent to withdraw; or

(iii) in the case of a student who does not begin the

withdrawal process or otherwise notify the institution of the

intent to withdraw, the date that is the mid-point of the

payment period for which assistance under this subchapter and

part C of subchapter I of chapter 34 of title 42 was

disbursed or a later date documented by the institution; or

(B) for institutions required to take attendance, is

determined by the institution from such attendance records.

(2) Special rule

Notwithstanding paragraph (1), if the institution determines

that a student did not begin the withdrawal process, or otherwise

notify the institution of the intent to withdraw, due to illness,

accident, grievous personal loss, or other such circumstances

beyond the student's control, the institution may determine the

appropriate withdrawal date.

(d) Percentage of the payment period or period of enrollment

completed

For purposes of subsection (a)(3)(B)(i) of this section, the

percentage of the payment period or period of enrollment for which

assistance was awarded that was completed, is determined -

(1) in the case of a program that is measured in credit hours,

by dividing the total number of calendar days comprising the

payment period or period of enrollment for which assistance is

awarded into the number of calendar days completed in that period

as of the day the student withdrew; and

(2) in the case of a program that is measured in clock hours,

by dividing the total number of clock hours comprising the

payment period or period of enrollment for which assistance is

awarded into the number of clock hours -

(A) completed by the student in that period as of the day the

student withdrew; or

(B) scheduled to be completed as of the day the student

withdrew, if the clock hours completed in the period are not

less than a percentage, to be determined by the Secretary in

regulations, of the hours that were scheduled to be completed

by the student in the period.

(e) Effective date

The provisions of this section shall take effect 2 years after

October 7, 1998. An institution of higher education may choose to

implement such provisions prior to that date.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 484B, as added Pub. L. 102-325,

title IV, Sec. 485(a), July 23, 1992, 106 Stat. 619; amended Pub.

L. 103-208, Sec. 2(h)(26), (27), Dec. 20, 1993, 107 Stat. 2477;

Pub. L. 105-244, title IV, Sec. 485, Oct. 7, 1998, 112 Stat. 1737.)

-REFTEXT-

REFERENCES IN TEXT

Title IV, referred to in subsecs. (a) and (b), means title IV of

the Higher Education Act of 1965, Pub. L. 89-329, which is

classified generally to this subchapter and part C (Sec. 2751 et

seq.) of subchapter I of chapter 34 of Title 42, The Public Health

and Welfare. For complete classification of title IV to the Code,

see Tables.

-MISC2-

PRIOR PROVISIONS

Prior sections 1091b to 1091f were repealed, effective Sept. 30,

1976, by Pub. L. 94-482, title I, Sec. 151(a)(2), (b), Oct. 12,

1976, 90 Stat. 2151.

Section 1091b, Pub. L. 89-329, title V, Sec. 503, as added Pub.

L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 83; amended Pub. L.

92-318, title IV, Sec. 451(a), June 23, 1972, 86 Stat. 344,

authorized the Commissioner to appraise and annually report on

existing and future education personnel needs.

Section 1091c, Pub. L. 89-329, title V, Sec. 504, as added Pub.

L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 83; amended Pub. L.

90-575, title II, Sec. 231(a), Oct. 16, 1968, 82 Stat. 1039; Pub.

L. 92-318, title I, Sec. 141(a)(1)(B), (c)(1)(B), June 23, 1972, 86

Stat. 284, 285, authorized the Commissioner to make grants or

contracts with State or local educational agencies for attracting

qualified persons to the field of education.

Section 1091d, Pub. L. 89-329, title V, Sec. 505, as added Pub.

L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 84, required the

Commissioner to consult with the National Science Foundation and

the National Foundation on the Arts and the Humanities in

development and review of programs.

Section 1091e, Pub. L. 89-329, title V, Sec. 506, as added Pub.

L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 84, authorized

transfer of funds for programs for education professions

development.

Section 1091f, Pub. L. 89-329, title V, Sec. 507, as added Pub.

L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 84, authorized

employment of experts and consultants and set forth provisions for

compensation and travel expenses.

AMENDMENTS

1998 - Pub. L. 105-244 amended section catchline and text

generally. Prior to amendment, section consisted of subsecs. (a)

to (c) requiring each institution of higher education participating

in a program under this subchapter and part C of subchapter I of

chapter 34 of title 42 to have in effect a fair and equitable

refund policy for refunding unearned tuition, fees, room and board,

and other charges to students or parents who received grant or loan

assistance under this subchapter or part C of subchapter I of

chapter 34 of title 42.

1993 - Subsec. (a). Pub. L. 103-208, Sec. 2(h)(26), substituted

''grant or loan assistance'' for ''grant, loan, or work

assistance'' in introductory provisions.

Subsec. (b)(3). Pub. L. 103-208, Sec. 2(h)(27), substituted

''subsection (c) of this section'' for ''subsection (d) of this

section''.

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.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1092, 1094 of this title;

title 42 section 12604.

-CITE-

20 USC Sec. 1092 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1092. Institutional and financial assistance information for

students

-STATUTE-

(a) Information dissemination activities

(1) Each eligible institution participating in any program under

this subchapter and part C of subchapter I of chapter 34 of title

42 shall carry out information dissemination activities for

prospective and enrolled students (including those attending or

planning to attend less than full time) regarding the institution

and all financial assistance under this subchapter and part C of

subchapter I of chapter 34 of title 42. The information required by

this section shall be produced and be made readily available upon

request, through appropriate publications, mailings, and electronic

media, to an enrolled student and to any prospective student. Each

eligible institution shall, on an annual basis, provide to all

enrolled students a list of the information that is required to be

provided by institutions to students by this section and section

1232g of this title, together with a statement of the procedures

required to obtain such information. The information required by

this section shall accurately describe -

(A) the student financial assistance programs available to

students who enroll at such institution;

(B) the methods by which such assistance is distributed among

student recipients who enroll at such institution;

(C) any means, including forms, by which application for

student financial assistance is made and requirements for

accurately preparing such application;

(D) the rights and responsibilities of students receiving

financial assistance under this subchapter and part C of

subchapter I of chapter 34 of title 42;

(E) the cost of attending the institution, including (i)

tuition and fees, (ii) books and supplies, (iii) estimates of

typical student room and board costs or typical commuting costs,

and (iv) any additional cost of the program in which the student

is enrolled or expresses a specific interest;

(F) a statement of -

(i) the requirements of any refund policy with which the

institution is required to comply;

(ii) the requirements under section 1091b of this title for

the return of grant or loan assistance provided under this

subchapter and part C of subchapter I of chapter 34 of title

42; and

(iii) the requirements for officially withdrawing from the

institution;

(G) the academic program of the institution, including (i) the

current degree programs and other educational and training

programs, (ii) the instructional, laboratory, and other physical

plant facilities which relate to the academic program, and (iii)

the faculty and other instructional personnel;

(H) each person designated under subsection (c) of this

section, and the methods by which and locations in which any

person so designated may be contacted by students and prospective

students who are seeking information required by this subsection;

(I) special facilities and services available to handicapped

students;

(J) the names of associations, agencies, or governmental bodies

which accredit, approve, or license the institution and its

programs, and the procedures under which any current or

prospective student may obtain or review upon request a copy of

the documents describing the institution's accreditation,

approval, or licensing;

(K) the standards which the student must maintain in order to

be considered to be making satisfactory progress, pursuant to

section 1091(a)(2) of this title;

(L) the completion or graduation rate of certificate- or

degree-seeking, full-time, undergraduate students entering such

institutions;

(M) the terms and conditions under which students receiving

guaranteed student loans under part B of this subchapter or

direct student loans under part D of this subchapter, or both,

may -

(i) obtain deferral of the repayment of the principal and

interest for service under the Peace Corps Act (as established

by the Peace Corps Act (22 U.S.C. 2501 et seq.)) or under the

Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 et

seq.), or for comparable full-time service as a volunteer for a

tax-exempt organization of demonstrated effectiveness in the

field of community service, and

(ii) obtain partial cancellation of the student loan for

service under the Peace Corps Act (as established by the Peace

Corps Act (22 U.S.C. 2501 et seq.)) under (FOOTNOTE 1) the

Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.)

or, for comparable full-time service as a volunteer for a

tax-exempt organization of demonstrated effectiveness in the

field of community service;

(FOOTNOTE 1) So in original. Probably should be ''or under''.

(N) that enrollment in a program of study abroad approved for

credit by the home institution may be considered enrollment in

the home institution for purposes of applying for Federal student

financial assistance; and

(O) the campus crime report prepared by the institution

pursuant to subsection (f) of this section, including all

required reporting categories.

(2) For the purpose of this section, the term ''prospective

student'' means any individual who has contacted an eligible

institution requesting information concerning admission to that

institution.

(3) In calculating the completion or graduation rate under

subparagraph (L) of paragraph (1) of this subsection or under

subsection (e) of this section, a student shall be counted as a

completion or graduation if, within 150 percent of the normal time

for completion of or graduation from the program, the student has

completed or graduated from the program, or enrolled in any program

of an eligible institution for which the prior program provides

substantial preparation. The information required to be disclosed

under such subparagraph -

(A) shall be made available by July 1 each year to enrolled

students and prospective students prior to the students enrolling

or entering into any financial obligation; and

(B) shall cover the one-year period ending on August 31 of the

preceding year.

(4) For purposes of this section, institutions may exclude from

the information disclosed in accordance with subparagraph (L) of

paragraph (1) the completion or graduation rates of students who

leave school to serve in the armed services, on official church

missions, or with a recognized foreign aid service of the Federal

Government.

(5) The Secretary shall permit any institution of higher

education that is a member of an athletic association or athletic

conference that has voluntarily published completion or graduation

rate data or has agreed to publish data that, in the opinion of the

Secretary, is substantially comparable to the information required

under this subsection, to use such data to satisfy the requirements

of this subsection.

(6) Each institution may provide supplemental information to

enrolled and prospective students showing the completion or

graduation rate for students described in paragraph (4) or for

students transferring into the institution or information showing

the rate at which students transfer out of the institution.

(b) Exit counseling for borrowers

(1)(A) Each eligible institution shall, through financial aid

officers or otherwise, make available counseling to borrowers of

loans which are made, insured, or guaranteed under part B (other

than loans made pursuant to section 1078-2 of this title) of this

subchapter or made under part C or D of this subchapter prior to

the completion of the course of study for which the borrower

enrolled at the institution or at the time of departure from such

institution. The counseling required by this subsection shall

include -

(i) the average anticipated monthly repayments, a review of the

repayment options available, and such debt and management

strategies as the institution determines are designed to

facilitate the repayment of such indebtedness; and

(ii) the terms and conditions under which the student may

obtain partial cancellation or defer repayment of the principal

and interest pursuant to sections 1078(b), 1087dd(c)(2), and

1087ee of this title.

(B) In the case of borrower who leaves an institution without the

prior knowledge of the institution, the institution shall attempt

to provide the information described in subparagraph (A) to the

student in writing.

(2)(A) Each eligible institution shall require that the borrower

of a loan made under part B, C, or D of this subchapter submit to

the institution, during the exit interview required by this

subsection -

(i) the borrower's expected permanent address after leaving the

institution (regardless of the reason for leaving);

(ii) the name and address of the borrower's expected employer

after leaving the institution;

(iii) the address of the borrower's next of kin; and

(iv) any corrections in the institution's records relating the

borrower's name, address, social security number, references, and

driver's license number.

(B) The institution shall, within 60 days after the interview,

forward any corrected or completed information received from the

borrower to the guaranty agency indicated on the borrower's student

aid records.

(C) Nothing in this subsection shall be construed to prohibit an

institution of higher education from utilizing electronic means to

provide personalized exit counseling.

(c) Financial assistance information personnel

Each eligible institution shall designate an employee or group of

employees who shall be available on a full-time basis to assist

students or potential students in obtaining information as

specified in subsection (a) of this section. The Secretary may, by

regulation, waive the requirement that an employee or employees be

available on a full-time basis for carrying out responsibilities

required under this section whenever an institution in which the

total enrollment, or the portion of the enrollment participating in

programs under this subchapter and part C of subchapter I of

chapter 34 of title 42 at that institution, is too small to

necessitate such employee or employees being available on a

full-time basis. No such waiver may include permission to exempt

any such institution from designating a specific individual or a

group of individuals to carry out the provisions of this section.

(d) Departmental publication of descriptions of assistance programs

(1) The Secretary shall make available to eligible institutions,

eligible lenders, and secondary schools descriptions of Federal

student assistance programs including the rights and

responsibilities of student and institutional participants, in

order to (A) assist students in gaining information through

institutional sources, and (B) assist institutions in carrying out

the provisions of this section, so that individual and

institutional participants will be fully aware of their rights and

responsibilities under such programs. In particular, such

information shall include information to enable students and

prospective students to assess the debt burden and monthly and

total repayment obligations that will be incurred as a result of

receiving loans of varying amounts under this subchapter and part C

of subchapter I of chapter 34 of title 42. In addition, such

information shall include information to enable borrowers to assess

the practical consequences of loan consolidation, including

differences in deferment eligibility, interest rates, monthly

payments, and finance charges, and samples of loan consolidation

profiles to illustrate such consequences. The Secretary shall

provide information concerning the specific terms and conditions

under which students may obtain partial or total cancellation or

defer repayment of loans for service, shall indicate (in terms of

the Federal minimum wage) the maximum level of compensation and

allowances that a student borrower may receive from a tax-exempt

organization to qualify for a deferment, and shall explicitly state

that students may qualify for such partial cancellations or

deferments when they serve as a paid employee of a tax-exempt

organization. Such information shall be provided by eligible

institutions and eligible lenders at any time that information

regarding loan availability is provided to any student.

(2) The Secretary, to the extent the information is available,

shall compile information describing State and other prepaid

tuition programs and savings programs and disseminate such

information to States, eligible institutions, students, and parents

in departmental publications.

(3) The Secretary, to the extent practicable, shall update the

Department's Internet site to include direct links to databases

that contain information on public and private financial assistance

programs. The Secretary shall only provide direct links to

databases that can be accessed without charge and shall make

reasonable efforts to verify that the databases included in a

direct link are not providing fraudulent information. The

Secretary shall prominently display adjacent to any such direct

link a disclaimer indicating that a direct link to a database does

not constitute an endorsement or recommendation of the database,

the provider of the database, or any services or products of such

provider. The Secretary shall provide additional direct links to

information resources from which students may obtain information

about fraudulent and deceptive practices in the provision of

services related to student financial aid.

(e) Disclosures required with respect to athletically related

student aid

(1) Each institution of higher education which participates in

any program under this subchapter and part C of subchapter I of

chapter 34 of title 42 and is attended by students receiving

athletically related student aid shall annually submit a report to

the Secretary which contains -

(A) the number of students at the institution of higher

education who received athletically related student aid broken

down by race and sex in the following sports: basketball,

football, baseball, cross country/track, and all other sports

combined;

(B) the number of students at the institution of higher

education, broken down by race and sex;

(C) the completion or graduation rate for students at the

institution of higher education who received athletically related

student aid broken down by race and sex in the following sports:

basketball, football, baseball, cross country/track and all other

sports combined;

(D) the completion or graduation rate for students at the

institution of higher education, broken down by race and sex;

(E) the average completion or graduation rate for the 4 most

recent completing or graduating classes of students at the

institution of higher education who received athletically related

student aid broken down by race and sex in the following

categories: basketball, football, baseball, cross country/track,

and all other sports combined; and

(F) the average completion or graduation rate for the 4 most

recent completing or graduating classes of students at the

institution of higher education broken down by race and sex.

(2) When an institution described in paragraph (1) of this

subsection offers a potential student athlete athletically related

student aid, such institution shall provide to the student and the

student's parents, guidance counselor, and coach the information

contained in the report submitted by such institution pursuant to

paragraph (1). If the institution is a member of a national

collegiate athletic association that compiles graduation rate data

on behalf of the association's member institutions that the

Secretary determines is substantially comparable to the information

described in paragraph (1), the distribution of the compilation of

such data to all secondary schools in the United States shall

fulfill the responsibility of the institution to provide

information to a prospective student athlete's guidance counselor

and coach.

(3) For purposes of this subsection, institutions may exclude

from the reporting requirements under paragraphs (1) and (2) the

completion or graduation rates of students and student athletes who

leave school to serve in the armed services, on official church

missions, or with a recognized foreign aid service of the Federal

Government.

(4) Each institution of higher education described in paragraph

(1) may provide supplemental information to students and the

Secretary showing the completion or graduation rate when such

completion or graduation rate includes students transferring into

and out of such institution.

(5) The Secretary, using the reports submitted under this

subsection, shall compile and publish a report containing the

information required under paragraph (1) broken down by -

(A) individual institutions of higher education; and

(B) athletic conferences recognized by the National Collegiate

Athletic Association and the National Association of

Intercollegiate Athletics.

(6) The Secretary shall waive the requirements of this subsection

for any institution of higher education that is a member of an

athletic association or athletic conference that has voluntarily

published completion or graduation rate data or has agreed to

publish data that, in the opinion of the Secretary, is

substantially comparable to the information required under this

subsection.

(7) The Secretary, in conjunction with the National Junior

College Athletic Association, shall develop and obtain data on

completion or graduation rates from two-year colleges that award

athletically related student aid. Such data shall, to the extent

practicable, be consistent with the reporting requirements set

forth in this section.

(8) For purposes of this subsection, the term ''athletically

related student aid'' means any scholarship, grant, or other form

of financial assistance the terms of which require the recipient to

participate in a program of intercollegiate athletics at an

institution of higher education in order to be eligible to receive

such assistance.

(9) The reports required by this subsection shall be due each

July 1 and shall cover the 1-year period ending August 31 of the

preceding year.

(f) Disclosure of campus security policy and campus crime

statistics

(1) Each eligible institution participating in any program under

this subchapter and part C of subchapter I of chapter 34 of title

42 shall on August 1, 1991, begin to collect the following

information with respect to campus crime statistics and campus

security policies of that institution, and beginning September 1,

1992, and each year thereafter, prepare, publish, and distribute,

through appropriate publications or mailings, to all current

students and employees, and to any applicant for enrollment or

employment upon request, an annual security report containing at

least the following information with respect to the campus security

policies and campus crime statistics of that institution:

(A) A statement of current campus policies regarding procedures

and facilities for students and others to report criminal actions

or other emergencies occurring on campus and policies concerning

the institution's response to such reports.

(B) A statement of current policies concerning security and

access to campus facilities, including campus residences, and

security considerations used in the maintenance of campus

facilities.

(C) A statement of current policies concerning campus law

enforcement, including -

(i) the enforcement authority of security personnel,

including their working relationship with State and local

police agencies; and

(ii) policies which encourage accurate and prompt reporting

of all crimes to the campus police and the appropriate police

agencies.

(D) A description of the type and frequency of programs

designed to inform students and employees about campus security

procedures and practices and to encourage students and employees

to be responsible for their own security and the security of

others.

(E) A description of programs designed to inform students and

employees about the prevention of crimes.

(F) Statistics concerning the occurrence on campus, in or on

noncampus buildings or property, and on public property during

the most recent calendar year, and during the 2 preceding

calendar years for which data are available -

(i) of the following criminal offenses reported to campus

security authorities or local police agencies:

(I) murder;

(II) sex offenses, forcible or nonforcible;

(III) robbery;

(IV) aggravated assault;

(V) burglary;

(VI) motor vehicle theft;

(VII) manslaughter;

(VIII) arson; and

(IX) arrests or persons referred for campus disciplinary

action for liquor law violations, drug-related violations,

and weapons possession; and

(ii) of the crimes described in subclauses (I) through (VIII)

of clause (i), and other crimes involving bodily injury to any

person in which the victim is intentionally selected because of

the actual or perceived race, gender, religion, sexual

orientation, ethnicity, or disability of the victim that are

reported to campus security authorities or local police

agencies, which data shall be collected and reported according

to category of prejudice.

(G) A statement of policy concerning the monitoring and

recording through local police agencies of criminal activity at

off-campus student organizations which are recognized by the

institution and that are engaged in by students attending the

institution, including those student organizations with

off-campus housing facilities.

(H) A statement of policy regarding the possession, use, and

sale of alcoholic beverages and enforcement of State underage

drinking laws and a statement of policy regarding the possession,

use, and sale of illegal drugs and enforcement of Federal and

State drug laws and a description of any drug or alcohol abuse

education programs as required under section 1011i of this title.

(I) A statement advising the campus community where law

enforcement agency information provided by a State under section

14071(j) of title 42, concerning registered sex offenders may be

obtained, such as the law enforcement office of the institution,

a local law enforcement agency with jurisdiction for the campus,

or a computer network address.

(2) Nothing in this subsection shall be construed to authorize

the Secretary to require particular policies, procedures, or

practices by institutions of higher education with respect to

campus crimes or campus security.

(3) Each institution participating in any program under this

subchapter and part C of subchapter I of chapter 34 of title 42

shall make timely reports to the campus community on crimes

considered to be a threat to other students and employees described

in paragraph (1)(F) that are reported to campus security or local

law police agencies. Such reports shall be provided to students

and employees in a manner that is timely and that will aid in the

prevention of similar occurrences.

(4)(A) Each institution participating in any program under this

subchapter and part C of subchapter I of chapter 34 of title 42

that maintains a police or security department of any kind shall

make, keep, and maintain a daily log, written in a form that can be

easily understood, recording all crimes reported to such police or

security department, including -

(i) the nature, date, time, and general location of each crime;

and

(ii) the disposition of the complaint, if known.

(B)(i) All entries that are required pursuant to this paragraph

shall, except where disclosure of such information is prohibited by

law or such disclosure would jeopardize the confidentiality of the

victim, be open to public inspection within two business days of

the initial report being made to the department or a campus

security authority.

(ii) If new information about an entry into a log becomes

available to a police or security department, then the new

information shall be recorded in the log not later than two

business days after the information becomes available to the police

or security department.

(iii) If there is clear and convincing evidence that the release

of such information would jeopardize an ongoing criminal

investigation or the safety of an individual, cause a suspect to

flee or evade detection, or result in the destruction of evidence,

such information may be withheld until that damage is no longer

likely to occur from the release of such information.

(5) On an annual basis, each institution participating in any

program under this subchapter and part C of subchapter I of chapter

34 of title 42 shall submit to the Secretary a copy of the

statistics required to be made available under paragraph (1)(F).

The Secretary shall -

(A) review such statistics and report to the Committee on

Education and the Workforce of the House of Representatives and

the Committee on Labor and Human Resources of the Senate on

campus crime statistics by September 1, 2000;

(B) make copies of the statistics submitted to the Secretary

available to the public; and

(C) in coordination with representatives of institutions of

higher education, identify exemplary campus security policies,

procedures, and practices and disseminate information concerning

those policies, procedures, and practices that have proven

effective in the reduction of campus crime.

(6)(A) In this subsection:

(i) The term ''campus'' means -

(I) any building or property owned or controlled by an

institution of higher education within the same reasonably

contiguous geographic area of the institution and used by the

institution in direct support of, or in a manner related to,

the institution's educational purposes, including residence

halls; and

(II) property within the same reasonably contiguous

geographic area of the institution that is owned by the

institution but controlled by another person, is used by

students, and supports institutional purposes (such as a food

or other retail vendor).

(ii) The term ''noncampus building or property'' means -

(I) any building or property owned or controlled by a student

organization recognized by the institution; and

(II) any building or property (other than a branch campus)

owned or controlled by an institution of higher education that

is used in direct support of, or in relation to, the

institution's educational purposes, is used by students, and is

not within the same reasonably contiguous geographic area of

the institution.

(iii) The term ''public property'' means all public property

that is within the same reasonably contiguous geographic area of

the institution, such as a sidewalk, a street, other

thoroughfare, or parking facility, and is adjacent to a facility

owned or controlled by the institution if the facility is used by

the institution in direct support of, or in a manner related to

the institution's educational purposes.

(B) In cases where branch campuses of an institution of higher

education, schools within an institution of higher education, or

administrative divisions within an institution are not within a

reasonably contiguous geographic area, such entities shall be

considered separate campuses for purposes of the reporting

requirements of this section.

(7) The statistics described in paragraph (1)(F) shall be

compiled in accordance with the definitions used in the uniform

crime reporting system of the Department of Justice, Federal Bureau

of Investigation, and the modifications in such definitions as

implemented pursuant to the Hate Crime Statistics Act. Such

statistics shall not identify victims of crimes or persons accused

of crimes.

(8)(A) Each institution of higher education participating in any

program under this subchapter and part C of subchapter I of chapter

34 of title 42 shall develop and distribute as part of the report

described in paragraph (1) a statement of policy regarding -

(i) such institution's campus sexual assault programs, which

shall be aimed at prevention of sex offenses; and

(ii) the procedures followed once a sex offense has occurred.

(B) The policy described in subparagraph (A) shall address the

following areas:

(i) Education programs to promote the awareness of rape,

acquaintance rape, and other sex offenses.

(ii) Possible sanctions to be imposed following the final

determination of an on-campus disciplinary procedure regarding

rape, acquaintance rape, or other sex offenses, forcible or

nonforcible.

(iii) Procedures students should follow if a sex offense

occurs, including who should be contacted, the importance of

preserving evidence as may be necessary to the proof of criminal

sexual assault, and to whom the alleged offense should be

reported.

(iv) Procedures for on-campus disciplinary action in cases of

alleged sexual assault, which shall include a clear statement

that -

(I) the accuser and the accused are entitled to the same

opportunities to have others present during a campus

disciplinary proceeding; and

(II) both the accuser and the accused shall be informed of

the outcome of any campus disciplinary proceeding brought

alleging a sexual assault.

(v) Informing students of their options to notify proper law

enforcement authorities, including on-campus and local police,

and the option to be assisted by campus authorities in notifying

such authorities, if the student so chooses.

(vi) Notification of students of existing counseling, mental

health or student services for victims of sexual assault, both on

campus and in the community.

(vii) Notification of students of options for, and available

assistance in, changing academic and living situations after an

alleged sexual assault incident, if so requested by the victim

and if such changes are reasonably available.

(C) Nothing in this paragraph shall be construed to confer a

private right of action upon any person to enforce the provisions

of this paragraph.

(9) The Secretary shall provide technical assistance in complying

with the provisions of this section to an institution of higher

education who requests such assistance.

(10) Nothing in this section shall be construed to require the

reporting or disclosure of privileged information.

(11) The Secretary shall report to the appropriate committees of

Congress each institution of higher education that the Secretary

determines is not in compliance with the reporting requirements of

this subsection.

(12) For purposes of reporting the statistics with respect to

crimes described in paragraph (1)(F), an institution of higher

education shall distinguish, by means of separate categories, any

criminal offenses that occur -

(A) on campus;

(B) in or on a noncampus building or property;

(C) on public property; and

(D) in dormitories or other residential facilities for students

on campus.

(13) Upon a determination pursuant to section 1094(c)(3)(B) of

this title that an institution of higher education has

substantially misrepresented the number, location, or nature of the

crimes required to be reported under this subsection, the Secretary

shall impose a civil penalty upon the institution in the same

amount and pursuant to the same procedures as a civil penalty is

imposed under section 1094(c)(3)(B) of this title.

(14)(A) Nothing in this subsection may be construed to -

(i) create a cause of action against any institution of higher

education or any employee of such an institution for any civil

liability; or

(ii) establish any standard of care.

(B) Notwithstanding any other provision of law, evidence

regarding compliance or noncompliance with this subsection shall

not be admissible as evidence in any proceeding of any court,

agency, board, or other entity, except with respect to an action to

enforce this subsection.

(15) This subsection may be cited as the ''Jeanne Clery

Disclosure of Campus Security Policy and Campus Crime Statistics

Act''.

(g) Data required

(1) In general

Each coeducational institution of higher education that

participates in any program under this subchapter and part C of

subchapter I of chapter 34 of title 42, and has an

intercollegiate athletic program, shall annually, for the

immediately preceding academic year, prepare a report that

contains the following information regarding intercollegiate

athletics:

(A) The number of male and female full-time undergraduates

that attended the institution.

(B) A listing of the varsity teams that competed in

intercollegiate athletic competition and for each such team the

following data:

(i) The total number of participants, by team, as of the

day of the first scheduled contest for the team.

(ii) Total operating expenses attributable to such teams,

except that an institution may also report such expenses on a

per capita basis for each team and expenditures attributable

to closely related teams such as track and field or swimming

and diving, may be reported together, although such

combinations shall be reported separately for men's and

women's teams.

(iii) Whether the head coach is male or female and whether

the head coach is assigned to that team on a full-time or

part-time basis. Graduate assistants and volunteers who

serve as head coaches shall be considered to be head coaches

for the purposes of this clause.

(iv) The number of assistant coaches who are male and the

number of assistant coaches who are female for each team and

whether a particular coach is assigned to that team on a

full-time or part-time basis. Graduate assistants and

volunteers who serve as assistant coaches shall be considered

to be assistant coaches for the purposes of this clause.

(C) The total amount of money spent on athletically related

student aid, including the value of waivers of educational

expenses, separately for men's and women's teams overall.

(D) The ratio of athletically related student aid awarded

male athletes to athletically related student aid awarded

female athletes.

(E) The total amount of expenditures on recruiting,

separately for men's and women's teams overall.

(F) The total annual revenues generated across all men's

teams and across all women's teams, except that an institution

may also report such revenues by individual team.

(G) The average annual institutional salary of the head

coaches of men's teams, across all offered sports, and the

average annual institutional salary of the head coaches of

women's teams, across all offered sports.

(H) The average annual institutional salary of the assistant

coaches of men's teams, across all offered sports, and the

average annual institutional salary of the assistant coaches of

women's teams, across all offered sports.

(I)(i) The total revenues, and the revenues from football,

men's basketball, women's basketball, all other men's sports

combined and all other women's sports combined, derived by the

institution from the institution's intercollegiate athletics

activities.

(ii) For the purpose of clause (i), revenues from

intercollegiate athletics activities allocable to a sport shall

include (without limitation) gate receipts, broadcast revenues,

appearance guarantees and options, concessions, and

advertising, but revenues such as student activities fees or

alumni contributions not so allocable shall be included in the

calculation of total revenues only.

(J)(i) The total expenses, and the expenses attributable to

football, men's basketball, women's basketball, all other men's

sports combined, and all other women's sports combined, made by

the institution for the institution's intercollegiate athletics

activities.

(ii) For the purpose of clause (i), expenses for

intercollegiate athletics activities allocable to a sport shall

include (without limitation) grants-in-aid, salaries, travel,

equipment, and supplies, but expenses such as general and

administrative overhead not so allocable shall be included in

the calculation of total expenses only.

(2) Special rule

For the purposes of subparagraph (G), (FOOTNOTE 2) if a coach

has responsibilities for more than one team and the institution

does not allocate such coach's salary by team, the institution

should divide the salary by the number of teams for which the

coach has responsibility and allocate the salary among the teams

on a basis consistent with the coach's responsibilities for the

different teams.

(FOOTNOTE 2) So in original. Probably should be ''paragraph

(1)(G),''.

(3) Disclosure of information to students and public

An institution of higher education described in paragraph (1)

shall make available to students and potential students, upon

request, and to the public, the information contained in the

report described in paragraph (1), except that all students shall

be informed of their right to request such information.

(4) Submission; report; information availability

(A) On an annual basis, each institution of higher education

described in paragraph (1) shall provide to the Secretary, within

15 days of the date that the institution makes available the

report under paragraph (1), the information contained in the

report.

(B) The Secretary shall prepare a report regarding the

information received under subparagraph (A) and submit such

report to the Committee on Education and the Workforce of the

House of Representatives and the Committee on Labor and Human

Resources of the Senate by April 1, 2000. The report shall -

(i) summarize the information and identify trends in the

information;

(ii) aggregate the information by divisions of the National

Collegiate Athletic Association; and

(iii) contain information on each individual institution of

higher education.

(C) The Secretary shall ensure that the reports described in

subparagraph (A) and the report to Congress described in

subparagraph (B) are made available to the public within a

reasonable period of time.

(D) Not later than 180 days after October 7, 1998, the

Secretary shall notify all secondary schools in all States

regarding the availability of the information reported under

subparagraph (B) and the information made available under

paragraph (1), and how such information may be accessed.

(5) ''Operating expenses'' defined

For the purposes of this subsection, the term ''operating

expenses'' means expenditures on lodging and meals,

transportation, officials, uniforms and equipment.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 485, as added Pub. L. 99-498, title

IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1482; amended Pub. L.

100-50, Sec. 15(10), (11), June 3, 1987, 101 Stat. 357; Pub. L.

101-542, title I, Sec. 103(a), (b), 104(a), title II, Sec. 204(a),

Nov. 8, 1990, 104 Stat. 2381-2385; Pub. L. 101-610, title II, Sec.

201-203, Nov. 16, 1990, 104 Stat. 3171, 3172; Pub. L. 102-26, Sec.

10(a)-(d), Apr. 9, 1991, 105 Stat. 128; Pub. L. 102-164, title VI,

Sec. 603, Nov. 15, 1991, 105 Stat. 1066; Pub. L. 102-325, title IV,

Sec. 486(a)-(c)(2), July 23, 1992, 106 Stat. 620, 621; Pub. L.

103-208, Sec. 2(h)(28)-(37), (k)(9), Dec. 20, 1993, 107 Stat. 2477,

2486; Pub. L. 103-382, title III, Sec. 360B(c), Oct. 20, 1994, 108

Stat. 3970; Pub. L. 104-208, div. A, title I, Sec. 101(e) (title

III, Sec. 308), Sept. 30, 1996, 110 Stat. 3009-233, 3009-262; Pub.

L. 105-18, title VI, Sec. 60001(a), June 12, 1997, 111 Stat. 214;

Pub. L. 105-244, title I, Sec. 102(b)(3), title IV, Sec. 486, Oct.

7, 1998, 112 Stat. 1622, 1741; Pub. L. 106-386, div. B, title VI,

Sec. 1601(c)(1), Oct. 28, 2000, 114 Stat. 1537.)

-REFTEXT-

REFERENCES IN TEXT

The Peace Corps Act, referred to in subsec. (a)(1)(M), is Pub. L.

87-293, Sept. 22, 1961, 75 Stat. 612, as amended, which is

classified principally to chapter 34 (Sec. 2501 et seq.) of Title

22, Foreign Relations and Intercourse. For complete classification

of this Act to the Code, see Short Title note set out under section

2501 of Title 22 and Tables.

The Domestic Volunteer Service Act of 1973, referred to in

subsec. (a)(1)(M), is Pub. L. 93-113, Oct. 1, 1973, 87 Stat. 394,

as amended, which is classified principally to chapter 66 (Sec.

4950 et seq.) of Title 42, The Public Health and Welfare. For

complete classification of this Act to the Code, see Short Title

note set out under section 4950 of Title 42 and Tables.

The Hate Crime Statistics Act, referred to in subsec. (f)(7), is

Pub. L. 101-275, Apr. 23, 1990, 104 Stat. 140, which is set out as

a note under section 534 of Title 28, Judiciary and Judicial

Procedure.

-MISC2-

PRIOR PROVISIONS

A prior section 1092, Pub. L. 89-329, title IV, Sec. 485, as

added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.

1449, related to provision of institutional and financial

assistance information for students, prior to the general revision

of this part by Pub. L. 99-498.

Another prior section 1092, Pub. L. 89-329, title V, Sec. 508,

formerly Sec. 502, Nov. 8, 1965, 79 Stat. 1255; renumbered Sec. 508

and amended Pub. L. 90-35, Sec. 2(b), 7, June 29, 1967, 81 Stat.

82, 93, prohibited the making of payments for religious purposes

for authorized programs, prior to repeal by Pub. L. 94-482, title

I, Sec. 151(a)(2), Oct. 12, 1976, 90 Stat. 2151.

AMENDMENTS

2000 - Subsec. (f)(1)(I). Pub. L. 106-386 added subpar. (I).

1998 - Subsec. (a)(1). Pub. L. 105-244, Sec. 486(a)(1)(B), in

introductory provisions, inserted after second sentence ''Each

eligible institution shall, on an annual basis, provide to all

enrolled students a list of the information that is required to be

provided by institutions to students by this section and section

1232g of this title, together with a statement of the procedures

required to obtain such information.''

Pub. L. 105-244, Sec. 486(a)(1)(A), in introductory provisions,

substituted ''upon request, through appropriate publications,

mailings, and electronic media, to an enrolled student and to any

prospective student'' for '', through appropriate publications and

mailings, to all current students, and to any prospective student

upon request''.

Subsec. (a)(1)(F). Pub. L. 105-244, Sec. 486(a)(1)(C), amended

subpar. (F) generally. Prior to amendment, subpar. (F) read as

follows: ''a statement of the refund policy of the institution, as

determined under section 1091b of this title, for the return of

unearned tuition and fees or other refundable portion of cost, as

described in subparagraph (E) of this paragraph, which refunds

shall be credited in the following order:

''(i) to outstanding balances on loans under part B of this

subchapter for the period of enrollment for which a refund is

required,

''(ii) to outstanding balances on loans under part C of this

subchapter for the period of enrollment for which a refund is

required,

''(iii) to outstanding balances on loans under part D of this

subchapter for the period of enrollment for which a refund is

required,

''(iv) to awards under subpart 1 of part A of this subchapter,

''(v) to awards under subpart 3 of part A of this subchapter,

''(vi) to other student assistance, and

''(vii) to the student;''.

Subsec. (a)(1)(O). Pub. L. 105-244, Sec. 486(a)(1)(D)-(F), added

subpar. (O).

Subsec. (a)(3)(A). Pub. L. 105-244, Sec. 486(a)(2), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: ''shall, for any academic year beginning more than 270

days after the Secretary first prescribes final regulations

pursuant to such subparagraph (L), be made available to current and

prospective students prior to enrolling or entering into any

financial obligation; and''.

Subsec. (a)(6). Pub. L. 105-244, Sec. 486(a)(3), added par. (6).

Subsec. (b)(1)(A). Pub. L. 105-244, Sec. 486(b)(1), struck out

''(individually or in groups)'' after ''counseling to borrowers''

in introductory provisions.

Subsec. (b)(2)(C). Pub. L. 105-244, Sec. 486(b)(2), added subpar.

(C).

Subsec. (d). Pub. L. 105-244, Sec. 486(c), designated existing

provisions as par. (1), redesignated former pars. (1) and (2) as

subpars. (A) and (B), respectively, and added pars. (2) and (3).

Subsec. (e)(2). Pub. L. 105-244, Sec. 486(d)(1), substituted

''the student's parents, guidance'' for ''his parents, his

guidance'' and inserted at end ''If the institution is a member of

a national collegiate athletic association that compiles graduation

rate data on behalf of the association's member institutions that

the Secretary determines is substantially comparable to the

information described in paragraph (1), the distribution of the

compilation of such data to all secondary schools in the United

States shall fulfill the responsibility of the institution to

provide information to a prospective student athlete's guidance

counselor and coach.''

Subsec. (e)(9). Pub. L. 105-244, Sec. 486(d)(2), amended par. (9)

generally. Prior to amendment, par. (9) read as follows: ''This

subsection shall not be effective until the first July 1 that

follows, by more than 270 days, the date on which the Secretary

first prescribes final regulations pursuant to this subsection.

The reports required by this subsection shall be due on that July 1

and each succeeding July 1 and shall cover the 1-year period ending

August 31 of the preceding year.''

Subsec. (f)(1)(F). Pub. L. 105-244, Sec. 486(e)(1)(A), amended

subpar. (F) generally. Prior to amendment, subpar. (F) read as

follows: ''Statistics concerning the occurrence on campus, during

the most recent calendar year, and during the 2 preceding calendar

years for which data are available, of the following criminal

offenses reported to campus security authorities or local police

agencies -

''(i) murder;

''(ii) sex offenses, forcible or nonforcible;

''(iii) robbery;

''(iv) aggravated assault;

''(v) burglary; and

''(vi) motor vehicle theft.''

Subsec. (f)(1)(H). Pub. L. 105-244, Sec. 486(e)(1)(B), (C),

redesignated subpar. (I) as (H) and struck out former subpar. (H)

which read as follows: ''Statistics concerning the number of

arrests for the following crimes occurring on campus:

''(i) liquor law violations;

''(ii) drug abuse violations; and

''(iii) weapons possessions.''

Subsec. (f)(1)(I). Pub. L. 105-244, Sec. 486(e)(1)(C),

redesignated subpar. (I) as (H).

Pub. L. 105-244, Sec. 102(b)(3), substituted ''section 1011i''

for ''section 1145g''.

Subsec. (f)(4). Pub. L. 105-244, Sec. 486(e)(6), added par. (4).

Former par. (4) redesignated (5).

Pub. L. 105-244, Sec. 486(e)(2)(A), which directed the

substitution of ''On an annual basis, each'' for ''Upon request of

the Secretary, each'' was executed by making the substitution for

''Upon the request of the Secretary, each'' to reflect the probable

intent of Congress.

Pub. L. 105-244, Sec. 486(e)(2)(B), substituted ''paragraph

(1)(F)'' for ''paragraphs (1)(F) and (1)(H)''.

Subsec. (f)(4)(A). Pub. L. 105-244, Sec. 486(e)(2)(C)-(E),

substituted ''and the Workforce'' for ''and Labor'' and ''2000''

for ''1995'' and struck out ''and'' at end.

Subsec. (f)(4)(B), (C). Pub. L. 105-244, Sec. 486(e)(2)(F), (G),

added subpar. (B) and redesignated former subpar. (B) as (C).

Subsec. (f)(5). Pub. L. 105-244, Sec. 486(e)(5), redesignated

par. (4) as (5). Former par. (5) redesignated (6).

Subsec. (f)(5)(A). Pub. L. 105-244, Sec. 486(e)(3), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: ''For purposes of this subsection, the term 'campus'

includes -

''(i) any building or property owned or controlled by the

institution of higher education within the same reasonably

contiguous geographic area and used by the institution in direct

support of, or related to its educational purposes; or

''(ii) any building or property owned or controlled by student

organizations recognized by the institution.''

Subsec. (f)(6). Pub. L. 105-244, Sec. 486(e)(5), redesignated

par. (5) as (6). Former par. (6) redesignated (7).

Pub. L. 105-244, Sec. 486(e)(4), substituted ''paragraph (1)(F)''

for ''paragraphs (1)(F) and (1)(H)'' and inserted at end ''Such

statistics shall not identify victims of crimes or persons accused

of crimes.''

Subsec. (f)(7), (8). Pub. L. 105-244, Sec. 486(e)(5),

redesignated pars. (6) and (7) as (7) and (8), respectively.

Subsec. (f)(9) to (15). Pub. L. 105-244, Sec. 486(e)(7), added

pars. (9) to (15).

Subsec. (g)(1)(I), (J). Pub. L. 105-244, Sec. 486(f)(1), added

subpars. (I) and (J).

Subsec. (g)(4), (5). Pub. L. 105-244, Sec. 486(f)(2)-(4), added

par. (4), redesignated former par. (4) as (5), and struck out

heading and text of former par. (5). Text read as follows: ''The

Secretary shall issue final regulations to implement the

requirements of this subsection not later than 180 days following

October 20, 1994. Each institution described in paragraph (1) shall

make available its first report pursuant to this section not later

than October 1, 1996.''

1997 - Subsec. (a)(3)(B). Pub. L. 105-18, Sec. 60001(a)(1),

substituted ''August 31'' for ''June 30''.

Subsec. (e)(9). Pub. L. 105-18, Sec. 60001(a)(2), substituted

''August 31'' for ''August 30''.

1996 - Subsec. (e)(9). Pub. L. 104-208 substituted ''August 30''

for ''June 30''.

1994 - Subsec. (g). Pub. L. 103-382 added subsec. (g).

1993 - Subsec. (a)(1)(F)(i) to (iii). Pub. L. 103-208, Sec.

2(h)(28), inserted before comma at end ''for the period of

enrollment for which a refund is required''.

Subsec. (a)(1)(F)(iv). Pub. L. 103-208, Sec. 2(h)(29), inserted

''under'' after ''awards''.

Subsec. (a)(1)(F)(vi). Pub. L. 103-208, Sec. 2(h)(32),

redesignated cl. (vii) as (vi) and struck out former cl. (vi) which

read as follows: ''to awards under part C of subchapter I of

chapter 34 of title 42,''.

Subsec. (a)(1)(F)(vii). Pub. L. 103-208, Sec. 2(h)(32),

redesignated cl. (viii) as (vii). Former cl. (vii) redesignated

(vi).

Pub. L. 103-208, Sec. 2(h)(30), struck out ''provided under this

subchapter and part C of subchapter I of chapter 34 of title 42''

after ''student assistance''.

Subsec. (a)(1)(F)(viii). Pub. L. 103-208, Sec. 2(h)(32),

redesignated cl. (viii) as (vii).

Pub. L. 103-208, Sec. 2(h)(31), struck out period after

''student''.

Subsec. (a)(1)(L). Pub. L. 103-208, Sec. 2(k)(9), amended

directory language of Pub. L. 102-325, Sec. 486(a)(3). See 1992

Amendment note below.

Pub. L. 103-208, Sec. 2(h)(33), inserted comma after

''full-time''.

Subsec. (a)(3)(A). Pub. L. 103-208, Sec. 2(h)(34), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: ''shall be available beginning on July 1, 1993, and each

year thereafter to current and prospective students prior to

enrolling or entering into any financial obligation; and''.

Subsec. (b)(1)(A), (2)(A). Pub. L. 103-208, Sec. 2(h)(35),

substituted ''under part'' for ''under parts''.

Subsec. (d). Pub. L. 103-208, Sec. 2(h)(36), inserted period at

end of penultimate sentence.

Subsec. (e)(9). Pub. L. 103-208, Sec. 2(h)(37), added subpar.

(9).

1992 - Subsec. (a)(1)(F). Pub. L. 102-325, Sec. 486(a)(1),

inserted '', as determined under section 1091b of this title,''

after ''of the institution'' and '', which refunds shall be

credited in the following order:'' after ''of this paragraph'' and

added cls. (i) to (viii).

Subsec. (a)(1)(K). Pub. L. 102-325, Sec. 486(a)(2), struck out

''and'' at end.

Subsec. (a)(1)(L). Pub. L. 102-325, Sec. 486(a)(4), redesignated

subpar. (L), relating to deferral or partial cancellation of

student loans, as (M).

Pub. L. 102-325, Sec. 486(a)(3), as amended by Pub. L. 103-208,

Sec. 2(k)(9), amended subpar. (L), relating to completion or

graduation rate, by substituting semicolon for period at end.

Subsec. (a)(1)(M). Pub. L. 102-325, Sec. 486(a)(4), (5),

redesignated subpar. (L), relating to deferral or partial

cancellation of student loans, as (M) and substituted ''; and'' for

period at end.

Subsec. (a)(1)(N). Pub. L. 102-325, Sec. 486(a)(6), added subpar.

(N).

Subsec. (b). Pub. L. 102-325, Sec. 486(b), amended subsec. (b)

generally, making changes in substance and structure of former text

which related to exit counseling for borrowers and borrower

information.

Subsec. (f)(1)(F). Pub. L. 102-325, Sec. 486(c)(1), amended

subpar. (F) generally. Prior to amendment, subpar. (F) read as

follows: ''Statistics concerning the occurrence on campus, during

the most recent calendar year, and during the 2 preceding calendar

years for which data are available, of the following criminal

offenses reported to campus security authorities or local police

agencies -

''(i) murder;

''(ii) rape;

''(iii) robbery;

''(iv) aggravated assault;

''(v) burglary; and

''(vi) motor vehicle theft.''

Subsec. (f)(7). Pub. L. 102-325, Sec. 486(c)(2), added par. (7).

1991 - Subsec. (a)(1)(L). Pub. L. 102-26, Sec. 10(a), which

directed the insertion of ''undergraduate'' after ''full-time'' in

subpar. (L), was executed to the subpar. (L) added by Pub. L.

101-542, Sec. 103(a), relating to completion or graduation rate, to

reflect the probable intent of Congress.

Subsec. (a)(3)(A) to (C). Pub. L. 102-26, Sec. 10(b), inserted

''and'' at end of subpar. (A), substituted a period for ''; and''

at end of subpar. (B), and struck out subpar. (C) which read as

follows: ''shall be updated not less than biennially.''

Subsec. (a)(5). Pub. L. 102-26, Sec. 10(c), added par. (5).

Subsec. (b). Pub. L. 102-164 substituted ''Exit counseling for

borrowers; borrower information'' for ''Exit counseling for

borrowers'' in heading and inserted at end ''Each eligible

institution shall require that the borrower of a loan made under

part B, part C, or part D of this subchapter submit to the

institution, during the exit interview required by this subsection,

the borrower's expected permanent address after leaving the

institution, regardless of the reason for leaving; the name and

address of the borrower's expected employer after leaving the

institution; and the address of the borrower's next of kin. In the

case of a loan made under part B of this subchapter, the

institution shall then submit this information to the holder of the

loan.''

Subsec. (f)(1). Pub. L. 102-26, Sec. 10(d), substituted ''August

1, 1991,'' for ''September 1, 1991,'' in introductory provisions,

and in subpar. (F) substituted ''calendar year'' and ''calendar

years'' for ''school year'' and ''school years'', respectively.

1990 - Subsec. (a)(1)(L). Pub. L. 101-610, Sec. 201, added

subpar. (L) relating to deferral or partial cancellation of student

loans.

Pub. L. 101-542, Sec. 103(a), added subpar. (L) relating to

completion or graduation rate.

Subsec. (a)(3), (4). Pub. L. 101-542, Sec. 103(b), added pars.

(3) and (4).

Subsec. (b)(3). Pub. L. 101-610, Sec. 202, added par. (3).

Subsec. (d). Pub. L. 101-610, Sec. 203, inserted before last

sentence ''The Secretary shall provide information concerning the

specific terms and conditions under which students may obtain

partial or total cancellation or defer repayment of loans for

service, shall indicate (in terms of the Federal minimum wage) the

maximum level of compensation and allowances that a student

borrower may receive from a tax-exempt organization to qualify for

a deferment, and shall explicitly state that students may qualify

for such partial cancellations or deferments when they serve as a

paid employee of a tax-exempt organization''.

Subsec. (e). Pub. L. 101-542, Sec. 104(a), added subsec. (e).

Subsec. (f). Pub. L. 101-542, Sec. 204(a), added subsec. (f).

1987 - Subsec. (b). Pub. L. 100-50, Sec. 15(10), inserted

''(other than loans made pursuant to section 1078-2 of this

title)'' after ''part B of this subchapter''.

Subsec. (d). Pub. L. 100-50, Sec. 15(11), inserted after second

sentence ''In addition, such information shall include information

to enable borrowers to assess the practical consequences of loan

consolidation, including differences in deferment eligibility,

interest rates, monthly payments, and finance charges, and samples

of loan consolidation profiles to illustrate such consequences.''

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-386, div. B, title VI, Sec. 1601(c)(2), Oct. 28,

2000, 114 Stat. 1538, provided that: ''The amendment made by this

subsection (amending this section) shall take effect 2 years after

the date of the enactment of this Act (Oct. 28, 2000).''

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.

EFFECTIVE DATE OF 1997 AMENDMENT

Section 60001(b) of Pub. L. 105-18 provided that:

''(1) In General. - Except as provided in paragraph (2), the

amendments made by subsection (a) (amending this section) are

effective upon enactment (June 12, 1997).

''(2) Information dissemination. - No institution shall be

required to comply with the amendment made by subsection (a)(1)

(amending this section) before July 1, 1998.''

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by section 486(a), (b), and (c)(2) of Pub. L. 102-325

effective July 23, 1992, except that changes relating to

disclosures effective with respect to periods of enrollment

beginning on or after July 1, 1993, see section 498 of Pub. L.

102-325, set out as a note under section 1088 of this title.

Section 486(c)(3) of Pub. L. 102-325 provided that: ''The

amendment made by this subsection to subparagraph (F)(ii) of

section 485(f)(1) of the Act (20 U.S.C. 1092(f)(1)(F)(ii)) shall be

effective with respect to reports made pursuant to such section on

or after September 1, 1993. The statistics required by subparagraph

(F) of such section shall -

''(A) in the report required on September 1, 1992, include

statistics concerning the occurrence on campus of offenses during

the period from August 1, 1991, to July 31, 1992;

''(B) in the report required on September 1, 1993, include

statistics concerning the occurrence on campus of offenses during

(i) the period from August 1, 1991, to December 31, 1991, and

(ii) the calendar year 1992;

''(C) in the report required on September 1, 1994, include

statistics concerning the occurrence on campus of offenses during

(i) the period from August 1, 1991, to December 31, 1991, and

(ii) the calendar years 1992 and 1993; and

''(D) in the report required on September 1 of 1995 and each

succeeding year, include statistics concerning the occurrence on

campus of offenses during the three calendar years preceding the

year in which the report is made.''

EFFECTIVE DATE OF 1990 AMENDMENT

Section 104(b) of Pub. L. 101-542, as amended by Pub. L. 102-26,

Sec. 10(e), Apr. 9, 1991, 105 Stat. 128, provided that: ''The

report to the Secretary of Education required by the amendments

made by this section (amending this section) shall be due on July

1, 1993, and annually thereafter, and shall cover the one-year

period ending on June 30 of the preceding year.''

Section 204(c) of Pub. L. 101-542 provided that: ''The amendments

made by this section (amending this section) shall take effect on

September 1, 1991, except that the requirement of section

485(f)(1)(F) and (H) of the Higher Education Act of 1965 (subsec.

(f)(1)(F), (H) of this section) (as added by this section) shall be

applied to require statistics with respect to school years

preceding the date of enactment of this Act (Nov. 8, 1990) only to

the extent that data concerning such years is reasonably

available.''

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

EFFECTIVE DATE

Section effective Oct. 17, 1986, except as otherwise provided,

see section 2 of Pub. L. 99-498, set out as a note under section

1001 of this title.

Subsec. (b) of this section applicable only to periods of

enrollment beginning on or after July 1, 1987, see section 407(b)

of Pub. L. 99-498, set out as a note under section 1091 of this

title.

REGULATIONS

Section 401(a) of Pub. L. 101-542 provided that: ''The Secretary

is authorized to issue regulations to carry out the provisions of

this Act (amending this section and sections 1085, 1094, and 1232g

of this title and enacting provisions set out as notes under this

section and section 1001 of this title).''

CONGRESSIONAL FINDINGS

Section 360B(b) of Pub. L. 103-382 provided that: ''The Congress

finds that -

''(1) participation in athletic pursuits plays an important

role in teaching young Americans how to work on teams, handle

challenges and overcome obstacles;

''(2) participation in athletic pursuits plays an important

role in keeping the minds and bodies of young Americans healthy

and physically fit;

''(3) there is increasing concern among citizens, educators,

and public officials regarding the athletic opportunities for

young men and women at institutions of higher education;

''(4) a recent study by the National Collegiate Athletic

Association found that in Division I-A institutions, only 20

percent of the average athletic department operations budget of

$1,310,000 is spent on women's athletics; 15 percent of the

average recruiting budget of $318,402 is spent on recruiting

female athletes; the average scholarship expenses for men is

$1,300,000 and $505,246 for women; and an average of 143 grants

are awarded to male athletes and 59 to women athletes;

''(5) female college athletes receive less than 18 percent of

the athletics recruiting dollar and less than 24 percent of the

athletics operating dollar;

''(6) male college athletes receive approximately $179,000,000

more per year in athletic scholarship grants than female college

athletes;

''(7) prospective students and prospective student athletes

should be aware of the commitments of an institution to providing

equitable athletic opportunities for its men and women students;

and

''(8) knowledge of an institution's expenditures for women's

and men's athletic programs would help prospective students and

prospective student athletes make informed judgments about the

commitments of a given institution of higher education to

providing equitable athletic benefits to its men and women

students.''

Section 102 of Pub. L. 101-542 provided that: ''The Congress

finds that -

''(1) education is fundamental to the development of individual

citizens and the progress of the Nation as a whole;

''(2) there is increasing concern among citizens, educators,

and public officials regarding the academic performance of

students at institutions of higher education;

''(3) a recent study by the National Institute of Independent

Colleges and Universities found that just 43 percent of students

attending 4-year public colleges and universities and 54 percent

of students entering private institutions graduated within 6

years of enrolling;

''(4) the academic performance of student athletes, especially

student athletes receiving football and basketball scholarships,

has been a source of great concern in recent years;

''(5) more than 10,000 athletic scholarships are provided

annually by institutions of higher education;

''(6) prospective students and prospective student athletes

should be aware of the educational commitments of an institution

of higher education; and

''(7) knowledge of graduation rates would help prospective

students and prospective student athletes make an informed

judgment about the educational benefits available at a given

institution of higher education.''

Section 202 of Pub. L. 101-542 provided that: ''The Congress

finds that -

''(1) the reported incidence of crime, particularly violent

crime, on some college campuses has steadily risen in recent

years;

''(2) although annual 'National Campus Violence Surveys'

indicate that roughly 80 percent of campus crimes are committed

by a student upon another student and that approximately 95

percent of the campus crimes that are violent are alcohol- or

drug-related, there are currently no comprehensive data on campus

crimes;

''(3) out of 8,000 postsecondary institutions participating in

Federal student aid programs, only 352 colleges and universities

voluntarily provide crime statistics directly through the Uniform

Crime Report of the Federal Bureau of Investigation, and other

institutions report data indirectly, through local police

agencies or States, in a manner that does not permit campus

statistics to be separated;

''(4) several State legislatures have adopted or are

considering legislation to require reporting of campus crime

statistics and dissemination of security practices and

procedures, but the bills are not uniform in their requirements

and standards;

''(5) students and employees of institutions of higher

education should be aware of the incidence of crime on campus and

policies and procedures to prevent crime or to report occurrences

of crime;

''(6) applicants for enrollment at a college or university, and

their parents, should have access to information about the crime

statistics of that institution and its security policies and

procedures; and

''(7) while many institutions have established crime preventive

measures to increase the safety of campuses, there is a clear

need -

''(A) to encourage the development on all campuses of

security policies and procedures;

''(B) for uniformity and consistency in the reporting of

crimes on campus; and

''(C) to encourage the development of policies and procedures

to address sexual assaults and racial violence on college

campuses.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1094, 1152 of this title.

-CITE-

20 USC Sec. 1092a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1092a. Combined payment plan

-STATUTE-

(a) Eligibility for plan

Upon the request of the borrower, a lender described in

subparagraph (A), (B), or (C) of section 1078-3(a)(1) of this

title, or defined in subpart I (FOOTNOTE 1) of part C of title VII

of the Public Health Service Act may, with respect to a

consolidation loan made under section 1078-3 of this title (and

section 1087-2(o) of this title as in effect prior to the enactment

of section 1078-3 of this title) and loans guaranteed under subpart

I (FOOTNOTE 1) of part C of title VII of the Public Health Service

Act (known as Health Education Assistance Loans), offer a combined

payment plan under which the lender shall submit one bill to the

borrower for the repayment of all such loans for the monthly or

other similar period of repayment.

(FOOTNOTE 1) See References in Text note below.

(b) Applicability of other requirements

A lender offering a combined payment plan shall comply with all

provisions of section 1078-3 of this title applicable to loans

consolidated or to be consolidated and shall comply with all

provisions of subpart I (FOOTNOTE 1) of part C of title VII of the

Public Health Service Act applicable to loans under that subpart

which are made part of the combined payment plan, except that a

lender offering a combined payment plan under this section may

offer consolidation loans pursuant to section 1078-3(b)(1)(A) of

this title if such lender holds any outstanding loan of a borrower

which is selected for inclusion in a combined payment plan.

(c) Lender eligibility

Such lender may offer a combined payment plan only if -

(1) the lender holds an outstanding loan of that borrower which

is selected by the borrower for incorporation into a combined

payment plan pursuant to this section (including loans which are

selected by the borrower for consolidation under this section);

or

(2) the borrower certifies that the borrower has sought and has

been unable to obtain a combined payment plan from the holders of

the outstanding loans of that borrower.

(d) Borrower selection of competing offers

In the case of multiple offers by lenders to administer a

combined payment plan for a borrower, the borrower shall select

from among them the lender to administer the combined payment plan

including its loan consolidation component.

(e) Effect of plan

Upon selection of a lender to administer the combined payment

plan, the lender may reissue any Health Education Assistance Loan

selected by the borrower for incorporation in the combined payment

plan which is not held by such lender and the proceeds of such

reissued loan shall be paid by the lender to the holder or holders

of the loans so selected to discharge the liability on such loans,

if -

(1) the lender selected to administer the combined payment plan

has determined to its satisfaction, in accordance with reasonable

and prudent business practices, for each loan being reissued (A)

that the loan is a legal, valid, and binding obligation of the

borrower; (B) that each such loan was made and serviced in

compliance with applicable laws and regulations; and (C) the

insurance on such loan is in full force and effect; and

(2) the loan being reissued was not in default (as defined in

section 733(e)(3) (FOOTNOTE 2) of the Public Health Service Act)

at the time the request for a combined payment plan is made.

(FOOTNOTE 2) See References in Text note below.

(f) Notes and insurance certificates

(1) Each loan reissued under subsection (e) of this section shall

be evidenced by a note executed by the borrower. The Secretary of

Health and Human Services shall insure such loan under a

certificate of comprehensive insurance with no insurance limit, but

any such certificate shall only be issued to an authorized holder

of loans insured under subpart I (FOOTNOTE 2) of part C of title

VII of the Public Health Service Act (including the Student Loan

Marketing Association). Such certificates shall provide that all

loans reissued under this section shall be fully insured against

loss of principal and interest. Any insurance issued with respect

to loans reissued under this section shall be excluded from the

limitation on maximum insurance authority set forth in section

728(a) (FOOTNOTE 2) of the Public Health Service Act.

Notwithstanding the provisions of section 729(a) (FOOTNOTE 2) of

the Public Health Service Act, the reissued loan shall be made in

an amount, including outstanding principal, capitalized interest,

accrued unpaid interest not yet capitalized, and authorized late

charges. The proceeds of each such loan will be paid by the lender

to the holder of the original loan being reissued and the

borrower's obligation to that holder on that loan shall be

discharged.

(2) Except as otherwise specifically provided for under the

provisions of this section, the terms of any reissued loan shall be

the same as the terms of the original loan. The maximum repayment

period for a loan reissued under this section shall not exceed the

remainder of the period which would have been permitted on the

original loan. If the lender holds more than one loan insured

under subpart I (FOOTNOTE 2) of part C of title VII of the Public

Health Service Act, the maximum repayment period for all such loans

may extend to the latest date permitted for any individual loan.

Any reissued loan may be consolidated with any other Health

Education Assistance Loan as provided in the Public Health Service

Act (42 U.S.C. 201 et seq.), and, with the concurrence of the

borrower, repayment of any such loans during any period may be made

in amounts that are less than the interest that accrues on such

loans during that period.

(g) Termination of borrower eligibility

The status of an individual as an eligible combined payment plan

borrower terminates upon receipt of a combined payment plan.

(h) Fees and premiums

No origination fee or insurance premium shall be charged to the

borrower on any combined payment plan, and no origination fee or

insurance premium shall be payable by the lender to the Secretary

of Health and Human Services.

(i) Commencement of repayment

Repayment of a combined payment plan shall commence within 60

days after the later of the date of acceptance of the lender's

offer to administer a combined payment plan, the making of the

consolidation loan or the reissuance of any Health Education

Assistance Loans pursuant to subsection (e) of this section.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 485A, as added Pub. L. 99-498,

title IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1484; amended Pub.

L. 100-50, Sec. 15(12), June 3, 1987, 101 Stat. 357.)

-REFTEXT-

REFERENCES IN TEXT

The Public Health Service Act, referred to in subsecs. (a), (b),

and (f), is act July 1, 1944, ch. 373, 58 Stat. 682, as amended,

which is classified generally to chapter 6A (Sec. 201 et seq.) of

Title 42, The Public Health and Welfare. Subpart I of part C of

title VII of the Act was classified generally to subpart I (Sec.

294 et seq.) of part C of subchapter V of chapter 6A of Title 42

and was omitted in the general revision of subchapter V of chapter

6A by Pub. L. 102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat.

1994. See subpart I (Sec. 292 et seq.) of part A of subchapter V of

chapter 6A. Sections 728, 729, and 733 of the Act were classified

to sections 294a, 294b, and 294f, respectively, of Title 42 and

were omitted in the general revision of subchapter V by Pub. L.

102-408. Pub. L. 102-408 enacted a new section 728 of act July 1,

1944, relating to distribution of assets, a new section 762,

relating to special projects, and a new section 763, relating to

preventive medicine and dental public health which are classified

to sections 292x, 294a, and 294b, respectively, of Title 42. See

sections 292a, 292b, and 292f, respectively, of Title 42. For

complete classification of this Act to the Code, see Short Title

note set out under section 201 of Title 42 and Tables.

-MISC2-

AMENDMENTS

1987 - Subsec. (a). Pub. L. 100-50 substituted ''subparagraph

(A), (B), or (C)'' for ''clause (i), (ii), or (iii)''.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

-CITE-

20 USC Sec. 1092b 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1092b. National Student Loan Data System

-STATUTE-

(a) Development of System

The Secretary shall consult with a representative group of

guaranty agencies, eligible lenders, and eligible institutions to

develop a mutually agreeable proposal for the establishment of a

National Student Loan Data System containing information regarding

loans made, insured, or guaranteed under part B of this subchapter

and loans made under parts C and D of this subchapter, and for

allowing the electronic exchange of data between program

participants and the system. In establishing such data system, the

Secretary shall place a priority on providing for the monitoring of

enrollment, student status, information about current loan holders

and servicers, and internship and residency information. Such data

system shall also permit borrowers to use the system to identify

the current loan holders and servicers of such borrower's loan not

later than one year after October 7, 1998. The information in the

data system shall include (but is not limited to) -

(1) the amount and type of each such loan made;

(2) the names and social security numbers of the borrowers;

(3) the guaranty agency responsible for the guarantee of the

loan;

(4) the institution of higher education or organization

responsible for loans made under parts C and D of this

subchapter;

(5) (FOOTNOTE 1) the exact amount of loans partially or totally

canceled or in deferment for service under the Peace Corps Act

(22 U.S.C. 2501 et seq.)), (FOOTNOTE 2) for service under the

Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.),

and for comparable full-time service as a volunteer for a

tax-exempt organization of demonstrated effectiveness. (FOOTNOTE

3)

(FOOTNOTE 1) So in original. Two pars. (5) have been enacted.

(FOOTNOTE 2) So in original.

(FOOTNOTE 3) So in original. The period probably should be a

semicolon.

(5) (FOOTNOTE 1) the eligible institution in which the student

was enrolled or accepted for enrollment at the time the loan was

made, and any additional institutions attended by the borrower;

(6) the total amount of loans made to any borrower and the

remaining balance of the loans;

(7) the lender, holder, and servicer of such loans;

(8) information concerning the date of any default on the loan

and the collection of the loan, including any information

concerning the repayment status of any defaulted loan on which

the Secretary has made a payment pursuant to section 1080(a) of

this title or the guaranty agency has made a payment to the

previous holder of the loan;

(9) information regarding any deferments or forbearance granted

on such loans; and

(10) the date of cancellation of the note upon completion of

repayment by the borrower of the loan or payment by the Secretary

pursuant to section 1087 of this title.

(b) Additional information

For the purposes of research and policy analysis, the proposal

shall also contain provisions for obtaining additional data

concerning the characteristics of borrowers and the extent of

student loan indebtedness on a statistically valid sample of

borrowers under part B of this subchapter. Such data shall include

-

(1) information concerning the income level of the borrower and

his family and the extent of the borrower's need for student

financial assistance, including loans;

(2) information concerning the type of institution attended by

the borrower and the year of the program of education for which

the loan was obtained;

(3) information concerning other student financial assistance

received by the borrower; and

(4) information concerning Federal costs associated with the

student loan program under part B of this subchapter, including

the costs of interest subsidies, special allowance payments, and

other subsidies.

(c) Verification

The Secretary may require lenders, guaranty agencies, or

institutions of higher education to verify information or obtain

eligibility or other information through the National Student Loan

Data System prior to making, guaranteeing, or certifying a loan

made under part B, C, or D of this subchapter.

(d) Omitted

(e) Standardization of data reporting

(1) In general

The Secretary shall by regulation prescribe standards and

procedures (including relevant definitions) that require all

lenders and guaranty agencies to report information on all

aspects of loans made under this subchapter and part C of

subchapter I of chapter 34 of title 42 in uniform formats in

order to permit the direct comparison of data submitted by

individual lenders, servicers or guaranty agencies.

(2) Activities

For the purpose of establishing standards under this section,

the Secretary shall -

(A) consult with guaranty agencies, lenders, institutions of

higher education, and organizations representing the groups

described in paragraph (1);

(B) develop standards designed to be implemented by all

guaranty agencies and lenders with minimum modifications to

existing data processing hardware and software; and

(C) publish the specifications selected to be used to

encourage the automation of exchanges of information between

all parties involved in loans under this subchapter and part C

of subchapter I of chapter 34 of title 42.

(f) Common identifiers

The Secretary shall, not later than July 1, 1993 -

(1) revise the codes used to identify institutions and students

in the student loan data system authorized by this section to

make such codes consistent with the codes used in each database

used by the Department of Education that contains information of

participation in programs under this subchapter and part C of

subchapter I of chapter 34 of title 42; and

(2) modify the design or operation of the system authorized by

this section to ensure that data relating to any institution is

readily accessible and can be used in a form compatible with the

integrated postsecondary education data system (IPEDS).

(g) Integration of databases

The Secretary shall integrate the National Student Loan Data

System with the Pell Grant applicant and recipient databases as of

January 1, 1994, and any other databases containing information on

participation in programs under this subchapter and part C of

subchapter I of chapter 34 of title 42.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 485B, as added Pub. L. 99-498,

title IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1486; amended Pub.

L. 100-50, Sec. 15(13), June 3, 1987, 101 Stat. 357; Pub. L.

101-239, title II, Sec. 2008, Dec. 19, 1989, 103 Stat. 2121; Pub.

L. 101-610, title II, Sec. 204, Nov. 16, 1990, 104 Stat. 3172; Pub.

L. 102-325, title IV, Sec. 487, July 23, 1992, 106 Stat. 623; Pub.

L. 103-208, Sec. 2(h)(38)-(41), Dec. 20, 1993, 107 Stat. 2478; Pub.

L. 105-244, title IV, Sec. 487, Oct. 7, 1998, 112 Stat. 1746.)

-REFTEXT-

REFERENCES IN TEXT

The Peace Corps Act, referred to in subsec. (a)(5), is Pub. L.

87-293, Sept. 22, 1961, 75 Stat. 612, as amended, which is

classified principally to chapter 34 (Sec. 2501 et seq.) of Title

22, Foreign Relations and Intercourse. For complete classification

of this Act to the Code, see Short Title note set out under section

2501 of Title 22 and Tables.

The Domestic Volunteer Service Act of 1973, referred to in

subsec. (a)(5), is Pub. L. 93-113, Oct. 1, 1973, 87 Stat. 394, as

amended, which is classified principally to chapter 66 (Sec. 4950

et seq.) of Title 42, The Public Health and Welfare. For complete

classification of this Act to the Code, see Short Title note set

out under section 4950 of Title 42 and Tables.

-COD-

CODIFICATION

Subsec. (d) of this section, which required the Secretary to

prepare and submit to appropriate committees of Congress, in each

fiscal year, a report describing the results obtained by the

establishment and operation of the student loan data system

authorized by this section, terminated, effective May 15, 2000,

pursuant to section 3003 of Pub. L. 104-66, as amended, set out as

a note under section 1113 of Title 31, Money and Finance. See,

also, page 80 of House Document No. 103-7.

-MISC3-

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-244 inserted ''not later than one

year after October 7, 1998'' before period at end of third

sentence.

1993 - Subsec. (a). Pub. L. 103-208, Sec. 2(h)(38), substituted

''parts C and D of this subchapter'' for ''part D of this

subchapter'' and struck out second period at end of third sentence.

Subsec. (a)(4). Pub. L. 103-208, Sec. 2(h)(39), substituted

''parts C and D of this subchapter'' for ''part D of this

subchapter''.

Subsec. (c). Pub. L. 103-208, Sec. 2(h)(40), substituted ''part

B, C, or D of this subchapter'' for ''part B or part D of this

subchapter''.

Subsec. (e)(1), (2)(C). Pub. L. 103-208, Sec. 2(h)(41),

substituted ''under this subchapter and part C of subchapter I of

chapter 34 of title 42'' for ''under this part''.

1992 - Subsec. (a). Pub. L. 102-325, Sec. 487(a), inserted '',

and for allowing the electronic exchange of data between program

participants and the system. In establishing such data system, the

Secretary shall place a priority on providing for the monitoring of

enrollment, student status, information about current loan holders

and servicers, and internship and residency information. Such data

system shall also permit borrowers to use the system to identify

the current loan holders and servicers of such borrower's loan.''

after ''part D of this subchapter''.

Subsecs. (e) to (g). Pub. L. 102-325, Sec. 487(b), added subsecs.

(e) to (g).

1990 - Subsec. (a)(5). Pub. L. 101-610 added subsec. (a)(5)

relating to loan cancellations and deferments.

1989 - Pub. L. 101-239 amended section generally, substituting

subsecs. (a) to (d) for former subsec. (a) relating to authority of

Secretary, subsec. (b) relating to access to information, subsec.

(c) relating to verification not required, and subsec. (d) relating

to report to Congress.

1987 - Subsec. (b)(1). Pub. L. 100-50, Sec. 15(13)(A),

substituted ''public agencies'' for ''Federal agencies''.

Subsec. (b)(2)(D). Pub. L. 100-50, Sec. 15(13)(B), substituted

''of any borrower'' for ''of a borrower for whom the guaranty

agency provides insurance''.

Subsec. (b)(3). Pub. L. 100-50, Sec. 15(13)(C), substituted

''public agency'' for ''Federal agency''.

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.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1078 of this title.

-CITE-

20 USC Sec. 1092c 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1092c. Simplification of lending process for borrowers

-STATUTE-

(a) All like loans treated as one

To the extent practicable, and with the cooperation of the

borrower, eligible lenders shall treat all loans made to a borrower

under the same section of part B of this subchapter as one loan and

shall submit one bill to the borrower for the repayment of all such

loans for the monthly or other similar period of repayment. Any

deferments on one such loan will be considered a deferment on the

total amount of all such loans.

(b) One lender, one guaranty agency

To the extent practicable, and with the cooperation of the

borrower, the guaranty agency shall ensure that a borrower only

have one lender, one holder, one guaranty agency, and one servicer

with which to maintain contact.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 485C, as added Pub. L. 102-325,

title IV, Sec. 488, July 23, 1992, 106 Stat. 624.)

-CITE-

20 USC Sec. 1092d 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1092d. Scholarship fraud assessment and awareness activities

-STATUTE-

(a) Annual report on scholarship fraud

(1) Requirement

The Attorney General and the Secretary of Education, in

conjunction with the Federal Trade Commission, shall jointly

submit to Congress each year a report on fraud in the offering of

financial assistance for purposes of financing an education at an

institution of higher education. Each report shall contain an

assessment of the nature and quantity of incidents of such fraud

during the one-year period ending on the date of such report.

(2) Initial report

The first report under paragraph (1) shall be submitted not

later than 18 months after November 1, 2000.

(b) National awareness activities

The Secretary of Education shall, in conjunction with the Federal

Trade Commission, maintain a scholarship fraud awareness site on

the Internet web site of the Department of Education. The

scholarship fraud awareness site may include the following:

(1) Appropriate materials from the Project Scholarscam

awareness campaign of the Commission, including examples of

common fraudulent schemes.

(2) A list of companies and individuals who have been convicted

of scholarship fraud in Federal or State court.

(3) An Internet-based message board to provide a forum for

public complaints and experiences with scholarship fraud.

(4) An electronic comment form for individuals who have

experienced scholarship fraud or have questions about scholarship

fraud, with appropriate mechanisms for the transfer of comments

received through such forms to the Department and the Commission.

(5) Internet links to other sources of information on

scholarship fraud, including Internet web sites of appropriate

nongovernmental organizations, colleges and universities, and

government agencies.

(6) An Internet link to the Better Business Bureau in order to

assist individuals in assessing the business practices of other

persons and entities.

(7) Information on means of communicating with the Federal

Student Aid Information Center, including telephone and Internet

contact information.

-SOURCE-

(Pub. L. 106-420, Sec. 5, Nov. 1, 2000, 114 Stat. 1868.)

-COD-

CODIFICATION

Section was enacted as part of the College Scholarship Fraud

Prevention Act of 2000, and not as part of title IV of the Higher

Education Act of 1965 which comprises this subchapter.

-MISC3-

FINDINGS

Pub. L. 106-420, Sec. 2, Nov. 1, 2000, 114 Stat. 1867, provided

that: ''Congress makes the following findings:

''(1) A substantial amount of fraud occurs in the offering of

college education financial assistance services to consumers.

''(2) Such fraud includes the following:

''(A) Misrepresentations regarding the provision of sources

from which consumers may obtain financial assistance (including

scholarships, grants, loans, tuition, awards, and other

assistance) for purposes of financing a college education.

''(B) Misrepresentations regarding the provision of

portfolios of such assistance tailored to the needs of specific

consumers.

''(C) Misrepresentations regarding the pre-selection of

students as eligible to receive such assistance.

''(D) Misrepresentations that such assistance will be

provided to consumers who purchase specified services from

specified entities.

''(E) Misrepresentations regarding the business relationships

between particular entities and entities that award or may

award such assistance.

''(F) Misrepresentations regarding refunds of processing fees

if consumers are not provided specified amounts of such

assistance, and other misrepresentations regarding refunds.

''(3) In 1996, the Federal Trade Commission launched 'Project

Scholarscam', a joint law enforcement and consumer education

campaign directed at fraudulent purveyors of so-called

'scholarship services'.

''(4) Despite the efforts of the Federal Trade Commission,

colleges and universities, and nongovernmental organizations, the

continued lack of awareness about scholarship fraud permits a

significant amount of fraudulent activity to occur.''

-CITE-

20 USC Sec. 1093 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1093. Distance education demonstration programs

-STATUTE-

(a) Purpose

It is the purpose of this section -

(1) to allow demonstration programs that are strictly monitored

by the Department of Education to test the quality and viability

of expanded distance education programs currently restricted

under this chapter;

(2) to provide for increased student access to higher education

through distance education programs; and

(3) to help determine -

(A) the most effective means of delivering quality education

via distance education course offerings;

(B) the specific statutory and regulatory requirements which

should be altered to provide greater access to high quality

distance education programs; and

(C) the appropriate level of Federal assistance for students

enrolled in distance education programs.

(b) Demonstration programs authorized

(1) In general

In accordance with the provisions of subsection (d) of this

section, the Secretary is authorized to select institutions of

higher education, systems of such institutions, or consortia of

such institutions for voluntary participation in a Distance

Education Demonstration Program that provides participating

institutions with the ability to offer distance education

programs that do not meet all or a portion of the sections or

regulations described in paragraph (2).

(2) Waivers

The Secretary is authorized to waive for any institution of

higher education, system of institutions of higher education, or

consortium participating in a Distance Education Demonstration

Program, the requirements of section 1087ll(5) of this title as

the section relates to computer costs, sections 1088(a) and

1088(b) of this title as such sections relate to requirements for

a minimum number of weeks of instruction, sections 1002(a)(3)(A),

1002(a)(3)(B), and 1091(l)(1) of this title, or one or more of

the regulations prescribed under this part or part E of this

subchapter which inhibit the operation of quality distance

education programs.

(3) Eligible applicants

(A) Eligible institutions

Except as provided in subparagraphs (B), (C), and (D), only

an institution of higher education that is eligible to

participate in programs under this subchapter and part C of

subchapter I of chapter 34 of title 42 shall be eligible to

participate in the demonstration program authorized under this

section.

(B) Prohibition

An institution of higher education described in section

1002(a)(1)(C) of this title shall not be eligible to

participate in the demonstration program authorized under this

section.

(C) Special rule

Subject to subparagraph (B), an institution of higher

education that meets the requirements of subsection (a) of

section 1002 of this title, other than the requirement of

paragraph (3)(A) or (3)(B) of such subsection, and that

provides a 2-year or 4-year program of instruction for which

the institution awards an associate or baccalaureate degree,

shall be eligible to participate in the demonstration program

authorized under this section.

(D) Requirement

Notwithstanding any other provision of this paragraph,

Western Governors University shall be considered eligible to

participate in the demonstration program authorized under this

section. In addition to the waivers described in paragraph

(2), the Secretary may waive the provisions of subchapter I of

this chapter and this part and part G of this subchapter for

such university that the Secretary determines to be appropriate

because of the unique characteristics of such university. In

carrying out the preceding sentence, the Secretary shall ensure

that adequate program integrity and accountability measures

apply to such university's participation in the demonstration

program authorized under this section.

(c) Application

(1) In general

Each institution, system, or consortium of institutions

desiring to participate in a demonstration program under this

section shall submit an application to the Secretary at such time

and in such manner as the Secretary may require.

(2) Contents

Each application shall include -

(A) a description of the institution, system, or consortium's

consultation with a recognized accrediting agency or

association with respect to quality assurances for the distance

education programs to be offered;

(B) a description of the statutory and regulatory

requirements described in subsection (b)(2) of this section or,

if applicable, subsection (b)(3)(D) of this section for which a

waiver is sought and the reasons for which the waiver is

sought;

(C) a description of the distance education programs to be

offered;

(D) a description of the students to whom distance education

programs will be offered;

(E) an assurance that the institution, system, or consortium

will offer full cooperation with the ongoing evaluations of the

demonstration program provided for in this section; and

(F) such other information as the Secretary may require.

(d) Selection

(1) In general

For the first year of the demonstration program authorized

under this section, the Secretary is authorized to select for

participation in the program not more than 15 institutions,

systems of institutions, or consortia of institutions. For the

third year of the demonstration program authorized under this

section, the Secretary may select not more than 35 institutions,

systems, or consortia, in addition to the institutions, systems,

or consortia selected pursuant to the preceding sentence, to

participate in the demonstration program if the Secretary

determines that such expansion is warranted based on the

evaluations conducted in accordance with subsections (f) and (g)

of this section.

(2) Considerations

In selecting institutions to participate in the demonstration

program in the first or succeeding years of the program, the

Secretary shall take into account -

(A) the number and quality of applications received;

(B) the Department's capacity to oversee and monitor each

institution's participation;

(C) an institution's -

(i) financial responsibility;

(ii) administrative capability; and

(iii) program or programs being offered via distance

education; and

(D) ensuring the participation of a diverse group of

institutions with respect to size, mission, and geographic

distribution.

(e) Notification

The Secretary shall make available to the public and to the

Committee on Labor and Human Resources of the Senate and the

Committee on Education and the Workforce of the House of

Representatives a list of institutions, systems or consortia

selected to participate in the demonstration program authorized by

this section. Such notice shall include a listing of the specific

statutory and regulatory requirements being waived for each

institution, system or consortium and a description of the distance

education courses to be offered.

(f) Evaluations and reports

(1) Evaluation

The Secretary shall evaluate the demonstration programs

authorized under this section on an annual basis. Such

evaluations specifically shall review -

(A) the extent to which the institution, system or consortium

has met the goals set forth in its application to the

Secretary, including the measures of program quality assurance;

(B) the number and types of students participating in the

programs offered, including the progress of participating

students toward recognized certificates or degrees and the

extent to which participation in such programs increased;

(C) issues related to student financial assistance for

distance education;

(D) effective technologies for delivering distance education

course offerings; and

(E) the extent to which statutory or regulatory requirements

not waived under the demonstration program present difficulties

for students or institutions.

(2) Policy analysis

The Secretary shall review current policies and identify those

policies that present impediments to the development and use of

distance education and other nontraditional methods of expanding

access to education.

(3) Reports

(A) In general

Within 18 months of the initiation of the demonstration

program, the Secretary shall report to the Committee on Labor

and Human Resources of the Senate and the Committee on

Education and the Workforce of the House of Representatives

with respect to -

(i) the evaluations of the demonstration programs

authorized under this section; and

(ii) any proposed statutory changes designed to enhance the

use of distance education.

(B) Additional reports

The Secretary shall provide additional reports to the

Committee on Labor and Human Resources of the Senate and the

Committee on Education and the Workforce of the House of

Representatives on an annual basis regarding -

(i) the demonstration programs authorized under this

section; and

(ii) the number and types of students receiving assistance

under this subchapter and part C of subchapter I of chapter

34 of title 42 for instruction leading to a recognized

certificate, as provided for in section 1091(l)(1) of this

title, including the progress of such students toward

recognized certificates and the degree to which participation

in such programs leading to such certificates increased.

(g) Oversight

In conducting the demonstration program authorized under this

section, the Secretary shall, on a continuing basis -

(1) assure compliance of institutions, systems or consortia

with the requirements of this subchapter and part C of subchapter

I of chapter 34 of title 42 (other than the sections and

regulations that are waived under subsections (b)(2) and

(b)(3)(D) of this section);

(2) provide technical assistance;

(3) monitor fluctuations in the student population enrolled in

the participating institutions, systems or consortia; and

(4) consult with appropriate accrediting agencies or

associations and appropriate State regulatory authorities.

(h) ''Distance education'' defined

For the purpose of this section, the term ''distance education''

means an educational process that is characterized by the

separation, in time or place, between instructor and student. Such

term may include courses offered principally through the use of -

(1) television, audio, or computer transmission, such as open

broadcast, closed circuit, cable, microwave, or satellite

transmission;

(2) audio or computer conferencing;

(3) video cassettes or discs; or

(4) correspondence.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 486, as added Pub. L. 99-498, title

IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1487; amended Pub. L.

102-325, title IV, Sec. 489, July 23, 1992, 106 Stat. 624; Pub. L.

105-244, title IV, Sec. 488, Oct. 7, 1998, 112 Stat. 1746.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (a)(1), 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.

-MISC2-

PRIOR PROVISIONS

A prior section 1093, Pub. L. 89-329, title IV, Sec. 486, as

added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.

1450, related to training in financial aid and student support

services, prior to the general revision of this part by Pub. L.

99-498.

AMENDMENTS

1998 - Pub. L. 105-244 amended section catchline and text

generally. Prior to amendment, section authorized Secretary to

make grants to nonprofit private organizations to provide training

for student financial aid administrators and TRIO personnel.

1992 - Pub. L. 102-325 struck out ''and student support'' after

''aid'' in section catchline and amended text generally,

substituting present provisions for former subsec. (a) relating to

program authority, subsec. (b) relating to use of funds, and

subsec. (c) relating to authorization of appropriations.

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.

-CITE-

20 USC Sec. 1094 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1094. Program participation agreements

-STATUTE-

(a) Required for programs of assistance; contents

In order to be an eligible institution for the purposes of any

program authorized under this subchapter and part C of subchapter I

of chapter 34 of title 42, an institution must be an institution of

higher education or an eligible institution (as that term is

defined for the purpose of that program) and shall, except with

respect to a program under subpart 4 of part A of this subchapter,

enter into a program participation agreement with the Secretary.

The agreement shall condition the initial and continuing

eligibility of an institution to participate in a program upon

compliance with the following requirements:

(1) The institution will use funds received by it for any

program under this subchapter and part C of subchapter I of

chapter 34 of title 42 and any interest or other earnings thereon

solely for the purpose specified in and in accordance with the

provision of that program.

(2) The institution shall not charge any student a fee for

processing or handling any application, form, or data required to

determine the student's eligibility for assistance under this

subchapter and part C of subchapter I of chapter 34 of title 42

or the amount of such assistance.

(3) The institution will establish and maintain such

administrative and fiscal procedures and records as may be

necessary to ensure proper and efficient administration of funds

received from the Secretary or from students under this

subchapter and part C of subchapter I of chapter 34 of title 42,

together with assurances that the institution will provide, upon

request and in a timely fashion, information relating to the

administrative capability and financial responsibility of the

institution to -

(A) the Secretary;

(B) the appropriate guaranty agency; and

(C) the appropriate accrediting agency or association.

(4) The institution will comply with the provisions of

subsection (c) of this section and the regulations prescribed

under that subsection, relating to fiscal eligibility.

(5) The institution will submit reports to the Secretary and,

in the case of an institution participating in a program under

part B or part D of this subchapter, to holders of loans made to

the institution's students under such parts at such times and

containing such information as the Secretary may reasonably

require to carry out the purpose of this subchapter and part C of

subchapter I of chapter 34 of title 42.

(6) The institution will not provide any student with any

statement or certification to any lender under part B of this

subchapter that qualifies the student for a loan or loans in

excess of the amount that student is eligible to borrow in

accordance with sections 1075(a), 1078(a)(2), and 1078(b)(1)(A)

and (B) of this title.

(7) The institution will comply with the requirements of

section 1092 of this title.

(8) In the case of an institution that advertises job placement

rates as a means of attracting students to enroll in the

institution, the institution will make available to prospective

students, at or before the time of application (A) the most

recent available data concerning employment statistics,

graduation statistics, and any other information necessary to

substantiate the truthfulness of the advertisements, and (B)

relevant State licensing requirements of the State in which such

institution is located for any job for which the course of

instruction is designed to prepare such prospective students.

(9) In the case of an institution participating in a program

under part B or C of this subchapter, the institution will inform

all eligible borrowers enrolled in the institution about the

availability and eligibility of such borrowers for State grant

assistance from the State in which the institution is located,

and will inform such borrowers from another State of the source

for further information concerning such assistance from that

State.

(10) The institution certifies that it has in operation a drug

abuse prevention program that is determined by the institution to

be accessible to any officer, employee, or student at the

institution.

(11) In the case of any institution whose students receive

financial assistance pursuant to section 1091(d) of this title,

the institution will make available to such students a program

proven successful in assisting students in obtaining a

certificate of high school equivalency.

(12) The institution certifies that -

(A) the institution has established a campus security policy;

and

(B) the institution has complied with the disclosure

requirements of section 1092(f) of this title.

(13) The institution will not deny any form of Federal

financial aid to any student who meets the eligibility

requirements of this subchapter and part C of subchapter I of

chapter 34 of title 42 on the grounds that the student is

participating in a program of study abroad approved for credit by

the institution.

(14)(A) The institution, in order to participate as an eligible

institution under part B or C of this subchapter, will develop a

Default Management Plan for approval by the Secretary as part of

its initial application for certification as an eligible

institution and will implement such Plan for two years

thereafter.

(B) Any institution of higher education which changes ownership

and any eligible institution which changes its status as a parent

or subordinate institution shall, in order to participate as an

eligible institution under part B or C of this subchapter,

develop a Default Management Plan for approval by the Secretary

and implement such Plan for two years after its change of

ownership or status.

(C) This paragraph shall not apply in the case of an

institution in which (i) neither the parent nor the subordinate

institution has a cohort default rate in excess of 10 percent,

and (ii) the new owner of such parent or subordinate institution

does not, and has not, owned any other institution with a cohort

default rate in excess of 10 percent.

(15) The institution acknowledges the authority of the

Secretary, guaranty agencies, lenders, accrediting agencies, the

Secretary of Veterans Affairs, and the State agencies under

subpart 1 of part G of this subchapter to share with each other

any information pertaining to the institution's eligibility to

participate in programs under this subchapter and part C of

subchapter I of chapter 34 of title 42 or any information on

fraud and abuse.

(16)(A) The institution will not knowingly employ an individual

in a capacity that involves the administration of programs under

this subchapter and part C of subchapter I of chapter 34 of title

42, or the receipt of program funds under this subchapter and

part C of subchapter I of chapter 34 of title 42, who has been

convicted of, or has pled nolo contendere or guilty to, a crime

involving the acquisition, use, or expenditure of funds under

this subchapter and part C of subchapter I of chapter 34 of title

42, or has been judicially determined to have committed fraud

involving funds under this subchapter and part C of subchapter I

of chapter 34 of title 42 or contract with an institution or

third party servicer that has been terminated under section 1082

of this title involving the acquisition, use, or expenditure of

funds under this subchapter and part C of subchapter I of chapter

34 of title 42, or who has been judicially determined to have

committed fraud involving funds under this subchapter and part C

of subchapter I of chapter 34 of title 42.

(B) The institution will not knowingly contract with or employ

any individual, agency, or organization that has been, or whose

officers or employees have been -

(i) convicted of, or pled nolo contendere or guilty to, a

crime involving the acquisition, use, or expenditure of funds

under this subchapter and part C of subchapter I of chapter 34

of title 42; or

(ii) judicially determined to have committed fraud involving

funds under this subchapter and part C of subchapter I of

chapter 34 of title 42.

(17) The institution will complete surveys conducted as a part

of the Integrated Postsecondary Education Data System (IPEDS) or

any other Federal postsecondary institution data collection

effort, as designated by the Secretary, in a timely manner and to

the satisfaction of the Secretary.

(18) The institution will meet the requirements established

pursuant to section 1092(g) of this title.

(19) The institution will not impose any penalty, including the

assessment of late fees, the denial of access to classes,

libraries, or other institutional facilities, or the requirement

that the student borrow additional funds, on any student because

of the student's inability to meet his or her financial

obligations to the institution as a result of the delayed

disbursement of the proceeds of a loan made under this subchapter

and part C of subchapter I of chapter 34 of title 42 due to

compliance with the provisions of this subchapter and part C of

subchapter I of chapter 34 of title 42, or delays attributable to

the institution.

(20) The institution will not provide any commission, bonus, or

other incentive payment based directly or indirectly on success

in securing enrollments or financial aid to any persons or

entities engaged in any student recruiting or admission

activities or in making decisions regarding the award of student

financial assistance, except that this paragraph shall not apply

to the recruitment of foreign students residing in foreign

countries who are not eligible to receive Federal student

assistance.

(21) The institution will meet the requirements established by

the Secretary and accrediting agencies or associations, and will

provide evidence to the Secretary that the institution has the

authority to operate within a State.

(22) The institution will comply with the refund policy

established pursuant to section 1091b of this title.

(23)(A) The institution, if located in a State to which section

1973gg-2(b) (FOOTNOTE 1) of title 42 does not apply, will make a

good faith effort to distribute a mail voter registration form,

requested and received from the State, to each student enrolled

in a degree or certificate program and physically in attendance

at the institution, and to make such forms widely available to

students at the institution.

(FOOTNOTE 1) See References in Text note below.

(B) The institution shall request the forms from the State 120

days prior to the deadline for registering to vote within the

State. If an institution has not received a sufficient quantity

of forms to fulfill this section from the State within 60 days

prior to the deadline for registering to vote in the State, the

institution shall not be held liable for not meeting the

requirements of this section during that election year.

(C) This paragraph shall apply to general and special elections

for Federal office, as defined in section 431(3) of title 2, and

to the elections for Governor or other chief executive within

such State). (FOOTNOTE 2)

(FOOTNOTE 2) So in original. The closing parenthesis probably

should not appear.

(b) Hearings

(1) An institution that has received written notice of a final

audit or program review determination and that desires to have such

determination reviewed by the Secretary shall submit to the

Secretary a written request for review not later than 45 days after

receipt of notification of the final audit or program review

determination.

(2) The Secretary shall, upon receipt of written notice under

paragraph (1), arrange for a hearing and notify the institution

within 30 days of receipt of such notice the date, time, and place

of such hearing. Such hearing shall take place not later than 120

days from the date upon which the Secretary notifies the

institution.

(c) Audits; financial responsibility; enforcement of standards

(1) Notwithstanding any other provisions of this subchapter and

part C of subchapter I of chapter 34 of title 42, the Secretary

shall prescribe such regulations as may be necessary to provide for

-

(A)(i) except as provided in clauses (ii) and (iii), a

financial audit of an eligible institution with regard to the

financial condition of the institution in its entirety, and a

compliance audit of such institution with regard to any funds

obtained by it under this subchapter and part C of subchapter I

of chapter 34 of title 42 or obtained from a student or a parent

who has a loan insured or guaranteed by the Secretary under this

subchapter and part C of subchapter I of chapter 34 of title 42,

on at least an annual basis and covering the period since the

most recent audit, conducted by a qualified, independent

organization or person in accordance with standards established

by the Comptroller General for the audit of governmental

organizations, programs, and functions, and as prescribed in

regulations of the Secretary, the results of which shall be

submitted to the Secretary and shall be available to cognizant

guaranty agencies, eligible lenders, State agencies, and the

appropriate State agency notifying the Secretary under subpart 1

of part G of this subchapter;

(ii) with regard to an eligible institution which is audited

under chapter 75 of title 31, deeming such audit to satisfy the

requirements of clause (i) for the period covered by such audit;

or

(iii) at the discretion of the Secretary, with regard to an

eligible institution (other than an eligible institution

described in section 1002(a)(1)(C) of this title) that has

obtained less than $200,000 in funds under this subchapter and

part C of subchapter I of chapter 34 of title 42 during each of

the 2 award years that precede the audit period and submits a

letter of credit payable to the Secretary equal to not less than

1/2 of the annual potential liabilities of such institution as

determined by the Secretary, deeming an audit conducted every 3

years to satisfy the requirements of clause (i), except for the

award year immediately preceding renewal of the institution's

eligibility under section 1099c(g) of this title;

(B) in matters not governed by specific program provisions, the

establishment of reasonable standards of financial responsibility

and appropriate institutional capability for the administration

by an eligible institution of a program of student financial aid

under this subchapter and part C of subchapter I of chapter 34 of

title 42, including any matter the Secretary deems necessary to

the sound administration of the financial aid programs, such as

the pertinent actions of any owner, shareholder, or person

exercising control over an eligible institution;

(C)(i) except as provided in clause (ii), a compliance audit of

a third party servicer (other than with respect to the servicer's

functions as a lender if such functions are otherwise audited

under this part and such audits meet the requirements of this

clause), with regard to any contract with an eligible

institution, guaranty agency, or lender for administering or

servicing any aspect of the student assistance programs under

this subchapter and part C of subchapter I of chapter 34 of title

42, at least once every year and covering the period since the

most recent audit, conducted by a qualified, independent

organization or person in accordance with standards established

by the Comptroller General for the audit of governmental

organizations, programs, and functions, and as prescribed in

regulations of the Secretary, the results of which shall be

submitted to the Secretary; or

(ii) with regard to a third party servicer that is audited

under chapter 75 of title 31, such audit shall be deemed to

satisfy the requirements of clause (i) for the period covered by

such audit;

(D)(i) a compliance audit of a secondary market with regard to

its transactions involving, and its servicing and collection of,

loans made under this subchapter and part C of subchapter I of

chapter 34 of title 42, at least once a year and covering the

period since the most recent audit, conducted by a qualified,

independent organization or person in accordance with standards

established by the Comptroller General for the audit of

governmental organizations, programs, and functions, and as

prescribed in regulations of the Secretary, the results of which

shall be submitted to the Secretary; or

(ii) with regard to a secondary market that is audited under

chapter 75 of title 31, such audit shall be deemed to satisfy the

requirements of clause (i) for the period covered by the audit;

(E) the establishment, by each eligible institution under part

B of this subchapter responsible for furnishing to the lender the

statement required by section 1078(a)(2)(A)(i) of this title, of

policies and procedures by which the latest known address and

enrollment status of any student who has had a loan insured under

this part and who has either formally terminated his enrollment,

or failed to re-enroll on at least a half-time basis, at such

institution, shall be furnished either to the holder (or if

unknown, the insurer) of the note, not later than 60 days after

such termination or failure to re-enroll;

(F) the limitation, suspension, or termination of the

participation in any program under this subchapter and part C of

subchapter I of chapter 34 of title 42 of an eligible

institution, or the imposition of a civil penalty under paragraph

(2)(B) whenever the Secretary has determined, after reasonable

notice and opportunity for hearing, that such institution has

violated or failed to carry out any provision of this subchapter

and part C of subchapter I of chapter 34 of title 42, any

regulation prescribed under this subchapter and part C of

subchapter I of chapter 34 of title 42, or any applicable special

arrangement, agreement, or limitation, except that no period of

suspension under this section shall exceed 60 days unless the

institution and the Secretary agree to an extension or unless

limitation or termination proceedings are initiated by the

Secretary within that period of time;

(G) an emergency action against an institution, under which the

Secretary shall, effective on the date on which a notice and

statement of the basis of the action is mailed to the institution

(by registered mail, return receipt requested), withhold funds

from the institution or its students and withdraw the

institution's authority to obligate funds under any program under

this subchapter and part C of subchapter I of chapter 34 of title

42, if the Secretary -

(i) receives information, determined by the Secretary to be

reliable, that the institution is violating any provision of

this subchapter and part C of subchapter I of chapter 34 of

title 42, any regulation prescribed under this subchapter and

part C of subchapter I of chapter 34 of title 42, or any

applicable special arrangement, agreement, or limitation,

(ii) determines that immediate action is necessary to prevent

misuse of Federal funds, and

(iii) determines that the likelihood of loss outweighs the

importance of the procedures prescribed under subparagraph (D)

for limitation, suspension, or termination,

except that an emergency action shall not exceed 30 days unless

limitation, suspension, or termination proceedings are initiated

by the Secretary against the institution within that period of

time, and except that the Secretary shall provide the institution

an opportunity to show cause, if it so requests, that the

emergency action is unwarranted;

(H) the limitation, suspension, or termination of the

eligibility of a third party servicer to contract with any

institution to administer any aspect of an institution's student

assistance program under this subchapter and part C of subchapter

I of chapter 34 of title 42, or the imposition of a civil penalty

under paragraph (2)(B), whenever the Secretary has determined,

after reasonable notice and opportunity for a hearing, that such

organization, acting on behalf of an institution, has violated or

failed to carry out any provision of this subchapter and part C

of subchapter I of chapter 34 of title 42, any regulation

prescribed under this subchapter and part C of subchapter I of

chapter 34 of title 42, or any applicable special arrangement,

agreement, or limitation, except that no period of suspension

under this subparagraph shall exceed 60 days unless the

organization and the Secretary agree to an extension, or unless

limitation or termination proceedings are initiated by the

Secretary against the individual or organization within that

period of time; and

(I) an emergency action against a third party servicer that has

contracted with an institution to administer any aspect of the

institution's student assistance program under this subchapter

and part C of subchapter I of chapter 34 of title 42, under which

the Secretary shall, effective on the date on which a notice and

statement of the basis of the action is mailed to such individual

or organization (by registered mail, return receipt requested),

withhold funds from the individual or organization and withdraw

the individual or organization's authority to act on behalf of an

institution under any program under this subchapter and part C of

subchapter I of chapter 34 of title 42, if the Secretary -

(i) receives information, determined by the Secretary to be

reliable, that the individual or organization, acting on behalf

of an institution, is violating any provision of this

subchapter and part C of subchapter I of chapter 34 of title

42, any regulation prescribed under this subchapter and part C

of subchapter I of chapter 34 of title 42, or any applicable

special arrangement, agreement, or limitation,

(ii) determines that immediate action is necessary to prevent

misuse of Federal funds, and

(iii) determines that the likelihood of loss outweighs the

importance of the procedures prescribed under subparagraph (F),

for limitation, suspension, or termination,

except that an emergency action shall not exceed 30 days unless

the limitation, suspension, or termination proceedings are

initiated by the Secretary against the individual or organization

within that period of time, and except that the Secretary shall

provide the individual or organization an opportunity to show

cause, if it so requests, that the emergency action is

unwarranted.

(2) If an individual who, or entity that, exercises substantial

control, as determined by the Secretary in accordance with the

definition of substantial control in subpart 3 of part G of this

subchapter, over one or more institutions participating in any

program under this subchapter and part C of subchapter I of chapter

34 of title 42, or, for purposes of paragraphs (1)(H) and (I), over

one or more organizations that contract with an institution to

administer any aspect of the institution's student assistance

program under this subchapter and part C of subchapter I of chapter

34 of title 42, is determined to have committed one or more

violations of the requirements of any program under this subchapter

and part C of subchapter I of chapter 34 of title 42, or has been

suspended or debarred in accordance with the regulations of the

Secretary, the Secretary may use such determination, suspension, or

debarment as the basis for imposing an emergency action on, or

limiting, suspending, or terminating, in a single proceeding, the

participation of any or all institutions under the substantial

control of that individual or entity.

(3)(A) Upon determination, after reasonable notice and

opportunity for a hearing, that an eligible institution has engaged

in substantial misrepresentation of the nature of its educational

program, its financial charges, or the employability of its

graduates, the Secretary may suspend or terminate the eligibility

status for any or all programs under this subchapter and part C of

subchapter I of chapter 34 of title 42 of any otherwise eligible

institution, in accordance with procedures specified in paragraph

(1)(D) of this subsection, until the Secretary finds that such

practices have been corrected.

(B)(i) Upon determination, after reasonable notice and

opportunity for a hearing, that an eligible institution -

(I) has violated or failed to carry out any provision of this

subchapter and part C of subchapter I of chapter 34 of title 42

or any regulation prescribed under this subchapter and part C of

subchapter I of chapter 34 of title 42; or

(II) has engaged in substantial misrepresentation of the nature

of its educational program, its financial charges, and the

employability of its graduates,

the Secretary may impose a civil penalty upon such institution of

not to exceed $25,000 for each violation or misrepresentation.

(ii) Any civil penalty may be compromised by the Secretary. In

determining the amount of such penalty, or the amount agreed upon

in compromise, the appropriateness of the penalty to the size of

the institution of higher education subject to the determination,

and the gravity of the violation, failure, or misrepresentation

shall be considered. The amount of such penalty, when finally

determined, or the amount agreed upon in compromise, may be

deducted from any sums owing by the United States to the

institution charged.

(4) The Secretary shall publish a list of State agencies which

the Secretary determines to be reliable authority as to the quality

of public postsecondary vocational education in their respective

States for the purpose of determining eligibility for all Federal

student assistance programs.

(5) The Secretary shall make readily available to appropriate

guaranty agencies, eligible lenders, State agencies notifying the

Secretary under subpart 1 of part G of this subchapter, and

accrediting agencies or associations the results of the audits of

eligible institutions conducted pursuant to paragraph (1)(A).

(6) The Secretary is authorized to provide any information

collected as a result of audits conducted under this section,

together with audit information collected by guaranty agencies, to

any Federal or State agency having responsibilities with respect to

student financial assistance, including those referred to in

subsection (a)(15) of this section.

(7) Effective with respect to any audit conducted under this

subsection after December 31, 1988, if, in the course of conducting

any such audit, the personnel of the Department of Education

discover, or are informed of, grants or other assistance provided

by an institution in accordance with this subchapter and part C of

subchapter I of chapter 34 of title 42 for which the institution

has not received funds appropriated under this subchapter and part

C of subchapter I of chapter 34 of title 42 (in the amount

necessary to provide such assistance), including funds for which

reimbursement was not requested prior to such discovery or

information, such institution shall be permitted to offset that

amount against any sums determined to be owed by the institution

pursuant to such audit, or to receive reimbursement for that amount

(if the institution does not owe any such sums).

(d) ''Eligible institution'' defined

For the purpose of this section, the term ''eligible

institution'' means any such institution described in section 1002

of this title.

(e) Construction

Nothing in the amendments made by the Higher Education Amendments

of 1992 shall be construed to prohibit an institution from

recording, at the cost of the institution, a hearing referred to in

subsection (b)(2), subsection (c)(1)(D), or subparagraph (A) or

(B)(i) of subsection (c)(2), of this section to create a record of

the hearing, except the unavailability of a recording shall not

serve to delay the completion of the proceeding. The Secretary

shall allow the institution to use any reasonable means, including

stenographers, of recording the hearing.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 487, as added Pub. L. 99-498, title

IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1488; amended Pub. L.

101-239, title II, Sec. 2003(c)(2), 2006(c), Dec. 19, 1989, 103

Stat. 2114, 2118; Pub. L. 101-542, title II, Sec. 205, Nov. 8,

1990, 104 Stat. 2387; Pub. L. 102-26, Sec. 2(c)(3), Apr. 9, 1991,

105 Stat. 124; Pub. L. 102-325, title IV, Sec. 490, July 23, 1992,

106 Stat. 625; Pub. L. 103-208, Sec. 2(h)(42), (43), Dec. 20, 1993,

107 Stat. 2478; Pub. L. 105-244, title I, Sec. 102(b)(4), title IV,

Sec. 489(a), (b)(1), (c), Oct. 7, 1998, 112 Stat. 1622, 1750, 1751;

Pub. L. 106-113, div. B, Sec. 1000(a)(4) (title III, Sec. 314),

Nov. 29, 1999, 113 Stat. 1535, 1501A-266.)

-REFTEXT-

REFERENCES IN TEXT

Section 1973gg-2(b) of title 42, referred to in subsec.

(a)(23)(A), was in the original a reference to section 4(b) of the

National Voter Registration Act (42 U.S.C. 1973gg-2(b)), and has

been translated as if it referred to section 4(b) of the National

Voter Registration Act of 1993, Pub. L. 103-31, to reflect the

probable intent of Congress.

The Higher Education Amendments of 1992, referred to in subsec.

(e), is Pub. L. 102-325, July 23, 1992, 106 Stat. 448. For complete

classification of this Act to the Code, see Short Title of 1992

Amendment note set out under section 1001 of this title and Tables.

-MISC2-

PRIOR PROVISIONS

A prior section 1094, Pub. L. 89-329, title IV, Sec. 487, as

added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.

1451; amended Pub. L. 99-272, title XVI, Sec. 16034, Apr. 7, 1986,

100 Stat. 356, related to program participation agreements, prior

to the general revision of this part by Pub. L. 99-498.

AMENDMENTS

1999 - Subsec. (a)(23)(C). Pub. L. 106-113 amended subpar. (C)

generally. Prior to amendment, subpar. (C) read as follows: ''This

paragraph shall apply to elections as defined in section 431(1) of

title 2, and includes the election for Governor or other chief

executive within such State).''

1998 - Subsec. (a)(3)(B) to (D). Pub. L. 105-244, Sec. 489(a)(1),

redesignated subpars. (C) and (D) as (B) and (C), respectively, and

struck out former subpar. (B) which read as follows: ''the

appropriate State review entity designated under subpart 1 of part

G of this subchapter;''.

Subsec. (a)(4). Pub. L. 105-244, Sec. 489(a)(2), substituted

''subsection (c)'' for ''subsection (b)''.

Subsec. (a)(9). Pub. L. 105-244, Sec. 489(a)(3), substituted

''part B or C'' for ''part B''.

Subsec. (a)(14)(A), (B). Pub. L. 105-244, Sec. 489(a)(4)(A), (B),

substituted ''part B or C'' for ''part B''.

Subsec. (a)(14)(C). Pub. L. 105-244, Sec. 489(a)(4)(C), added

subpar. (C).

Subsec. (a)(15). Pub. L. 105-244, Sec. 489(a)(5), substituted

''the State agencies'' for ''State review entities''.

Subsec. (a)(18). Pub. L. 105-244, Sec. 489(a)(6), amended par.

(18) generally. Prior to amendment, par. (18) required

institutions to cause an annual compilation to be prepared of

revenues and expenses relating to men's and women's sports.

Subsec. (a)(21). Pub. L. 105-244, Sec. 489(a)(7), amended par.

(21) generally. Prior to amendment, par. (21) read as follows:

''The institution will meet the requirements established by the

Secretary, State postsecondary review entities, and accrediting

agencies pursuant to part G of this subchapter.''

Subsec. (a)(23). Pub. L. 105-244, Sec. 489(b)(1), added par.

(23).

Subsec. (c)(1)(A)(i). Pub. L. 105-244, Sec. 489(c)(1)(A),

substituted ''clauses (ii) and (iii)'' for ''clause (ii)'' and

''appropriate State agency notifying the Secretary under'' for

''State review entities referred to in'' and struck out ''or''

after semicolon.

Subsec. (c)(1)(A)(iii). Pub. L. 105-244, Sec. 489(c)(1)(B), (C),

added cl. (iii).

Subsec. (c)(4). Pub. L. 105-244, Sec. 489(c)(2), struck out '',

after consultation with each State review entity designated under

subpart 1 of part G of this subchapter,'' after ''shall publish''.

Subsec. (c)(5). Pub. L. 105-244, Sec. 489(c)(3), substituted

''State agencies notifying the Secretary'' for ''State review

entities designated''.

Subsec. (d). Pub. L. 105-244, Sec. 102(b)(4), substituted

''section 1002'' for ''section 1088''.

1993 - Subsec. (a)(2). Pub. L. 103-208, Sec. 2(h)(42), struck out

'', or for completing or handling the Federal Student Assistance

Report'' after ''amount of such assistance''.

Subsec. (c)(1)(F). Pub. L. 103-208, Sec. 2(h)(43), substituted

''participation in any program under this subchapter and part C of

subchapter I of chapter 34 of title 42 of an eligible

institution,'' for ''eligibility for any program under this

subchapter and part C of subchapter I of chapter 34 of title 42 of

any otherwise eligible institution,''.

1992 - Subsec. (a). Pub. L. 102-325, Sec. 490(f)(1), substituted

''subpart 4'' for ''subpart 3''.

Subsec. (a)(2). Pub. L. 102-325, Sec. 490(f)(2), struck out

''provided for in section 1090(e) of this title'' after ''Report''.

Subsec. (a)(3). Pub. L. 102-325, Sec. 490(a)(1), inserted before

period at end '', together with assurances that the institution

will provide, upon request and in a timely fashion, information

relating to the administrative capability and financial

responsibility of the institution to - '' and added subpars. (A) to

(D).

Subsec. (a)(8). Pub. L. 102-325, Sec. 490(a)(2), substituted

''application (A)'' for ''application,'' inserted '', and'' after

''advertisements'', and added subpar. (B).

Subsec. (a)(13) to (22). Pub. L. 102-325, Sec. 490(a)(3), added

pars. (13) to (22).

Subsec. (b)(2). Pub. L. 102-325, Sec. 490(b)(1), struck out ''on

the record'' after ''for a hearing''.

Subsec. (c)(1). Pub. L. 102-325, Sec. 490(b)(2)(A), substituted

''shall'' for ''is authorized to'' in introductory provisions.

Subsec. (c)(1)(A)(i). Pub. L. 102-325, Sec. 490(c), substituted

''a financial audit of an eligible institution with regard to the

financial condition of the institution in its entirety, and a

compliance audit of such institution'' for ''a financial and

compliance audit of an eligible institution,'' and ''on at least an

annual basis'' for ''at least once every 2 years'' and inserted

''and shall be available to cognizant guaranty agencies, eligible

lenders, State agencies, and the State review entities referred to

in subpart 1 of part G of this subchapter'' after ''submitted to

the Secretary''.

Subsec. (c)(1)(B). Pub. L. 102-325, Sec. 490(d)(1), inserted

before semicolon at end '', including any matter the Secretary

deems necessary to the sound administration of the financial aid

programs, such as the pertinent actions of any owner, shareholder,

or person exercising control over an eligible institution''.

Subsec. (c)(1)(C). Pub. L. 102-325, Sec. 490(d)(3), added subpar.

(C). Former subpar. (C) redesignated (E).

Subsec. (c)(1)(D). Pub. L. 102-325, Sec. 490(d)(3), added subpar.

(D). Former subpar. (D) redesignated (F).

Pub. L. 102-325, Sec. 490(b)(2)(B), struck out ''on the record''

after ''opportunity for hearing''.

Subsec. (c)(1)(E). Pub. L. 102-325, Sec. 490(d)(2), redesignated

subpar. (C) as (E). Former subpar. (E) redesignated (G).

Subsec. (c)(1)(F). Pub. L. 102-325, Sec. 490(d)(2), redesignated

subpar. (D) as (F). Former subpar. (F) redesignated (H).

Pub. L. 102-325, Sec. 490(b)(2)(C), struck out ''on the record''

after ''opportunity for a hearing''.

Subsec. (c)(1)(G). Pub. L. 102-325, Sec. 490(d)(2), redesignated

subpar. (E) as (G). Former subpar. (G) redesignated (I).

Subsec. (c)(1)(H). Pub. L. 102-325, Sec. 490(d)(2), (4),

redesignated subpar. (F) as (H) and substituted ''a third party

servicer'' for ''an individual or an organization''.

Subsec. (c)(1)(I). Pub. L. 102-325, Sec. 490(d)(2), (5),

redesignated subpar. (G) as (I) and substituted ''a third party

servicer'' for ''an individual or an organization''.

Subsec. (c)(2). Pub. L. 102-325, Sec. 490(d)(8), added par. (2).

Former par. (2) redesignated (3).

Pub. L. 102-325, Sec. 490(b)(2)(D), struck out ''on the record''

after ''opportunity for a hearing'' in subpars. (A) and (B)(i).

Subsec. (c)(3). Pub. L. 102-325, Sec. 490(d)(7), redesignated

par. (2) as (3). Former par. (3) redesignated (4).

Pub. L. 102-325, Sec. 490(d)(6), inserted '', after consultation

with each State review entity designated under subpart 1 of part G

of this subchapter,'' after ''shall publish''.

Subsec. (c)(4). Pub. L. 102-325, Sec. 490(d)(7), redesignated

par. (3) as (4).

Subsec. (c)(5) to (7). Pub. L. 102-325, Sec. 490(d)(9), added

pars. (5) to (7).

Subsec. (d). Pub. L. 102-325, Sec. 490(f)(3), substituted

''section 1088'' for ''section 1085(a)''.

Subsec. (e). Pub. L. 102-325, Sec. 490(e), added subsec. (e).

1991 - Subsec. (a)(11). Pub. L. 102-26 substituted ''whose

students receive financial assistance pursuant to section 1091(d)

of this title,'' for ''which admits students on the basis of their

ability to benefit from the education or training provided by such

institution (as determined under section 1091(d) of this title),''.

1990 - Subsec. (a)(12). Pub. L. 101-542 added par. (12).

1989 - Subsec. (a)(11). Pub. L. 101-239, Sec. 2003(c)(2), added

par. (11).

Subsec. (c)(1)(D). Pub. L. 101-239, Sec. 2006(c)(2), substituted

'', any regulation'' for ''or any regulation'' and inserted ''or

any applicable special arrangement, agreement, or limitation,''.

Subsec. (c)(1)(E) to (G). Pub. L. 101-239, Sec. 2006(c)(3), added

subpars. (E) to (G).

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.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by Pub. L. 102-26 applicable to any grant, loan, or

work assistance to cover the cost of instruction for periods of

enrollment beginning on or after July 1, 1991, see section 2(d)(1)

of Pub. L. 102-26, set out as a note under section 1085 of this

title.

EFFECTIVE DATE OF 1989 AMENDMENT

Section 2003(c)(3) of Pub. L. 101-239 provided that: ''The

amendments made by this subsection (amending this section and

section 1078-1 of this title) shall apply with respect to periods

of enrollment beginning on or after January 1, 1990.''

EFFECTIVE DATE

Section effective Oct. 17, 1986, except as otherwise provided,

see section 2 of Pub. L. 99-498, set out as a note under section

1001 of this title.

Subsec. (a)(10) of this section applicable only to periods of

enrollment beginning on or after July 1, 1987, see section 407(b)

of Pub. L. 99-498, set out as a note under section 1091 of this

title.

REGULATION PROHIBITED

Pub. L. 105-244, title IV, Sec. 489(b)(2), Oct. 7, 1998, 112

Stat. 1751, provided that: ''No officer of the executive branch is

authorized to instruct the institution in the manner in which the

amendment made by this subsection (amending this section) is

carried out.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1015, 1027, 1070a-15,

1070b-2, 1087c, 1087nn, 1087oo, 1087pp, 1087qq, 1087tt, 1091, 1092,

1096, 1099c of this title; title 42 section 12604.

-CITE-

20 USC Sec. 1094a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1094a. Regulatory relief and improvement

-STATUTE-

(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.

-SOURCE-

(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.)

-REFTEXT-

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.

-MISC2-

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.

-CITE-

20 USC Sec. 1094b 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1094b. Assignment of identification numbers

-STATUTE-

The Secretary shall assign to each participant in title IV

programs, including institutions, lenders, and guaranty agencies, a

single Department of Education identification number to be used to

identify its participation in each of the title IV programs.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 487B, as added Pub. L. 102-325,

title IV, Sec. 491, July 23, 1992, 106 Stat. 630.)

-REFTEXT-

REFERENCES IN TEXT

Title IV, referred to in text, means title IV of Pub. L. 89-329,

as added by Pub. L. 99-498, which is classified generally to this

subchapter and part C of subchapter I of chapter 34 of Title 42,

The Public Health and Welfare.

-CITE-

20 USC Sec. 1095 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1095. Transfer of allotments

-STATUTE-

In order to offer an arrangement of types of aid, including

institutional and State aid which best fits the needs of each

individual student, an institution may (1) transfer a total of 25

percent of the institutions allotment under section 1087bb of this

title to the institution's allotment under section 1070b-3 of this

title or section 2752 of title 42 (or both); and (2) transfer 25

percent of the institution's allotment under section 2752 of title

42 to the institution's allotment under section 1070b-3 of this

title. Funds transferred to an institution's allotment under

another section may be used as a part of and for the same purposes

as funds allotted under that section. The Secretary shall have no

control over such transfer, except as specifically authorized,

except for the collection and dissemination of information.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 488, as added Pub. L. 99-498, title

IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1490; amended Pub. L.

100-50, Sec. 15(14), June 3, 1987, 101 Stat. 357; Pub. L. 102-325,

title IV, Sec. 492, July 23, 1992, 106 Stat. 630.)

-MISC1-

PRIOR PROVISIONS

A prior section 1095, Pub. L. 89-329, title IV, Sec. 488, as

added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.

1452, related to transfer of allotments, prior to the general

revision of this part by Pub. L. 99-498.

AMENDMENTS

1992 - Pub. L. 102-325 inserted first two sentences and struck

out former first sentence which read as follows: ''Up to 10 percent

of the allotment of an eligible institution for a fiscal year under

section 1070b-3 of this title or 2752 of title 42, may be

transferred to, and used for the purposes of, the institution's

allotment under the other section within the discretion of such

institution in order to offer an arrangement of types of aid,

including institutional and State aid, which best fits the needs of

each individual student.''

1987 - Pub. L. 100-50 substituted ''section 2752 of title 42''

for ''section 2756 of title 42''.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-325 to this section, relating to

transfers of allotments, applicable with respect to funds provided

for award years beginning on or after July 1, 1993, see section 498

of Pub. L. 102-325, set out as a note under section 1088 of this

title.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 2753.

-CITE-

20 USC Sec. 1095a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1095a. Wage garnishment requirement

-STATUTE-

(a) Garnishment requirements

Notwithstanding any provision of State law, a guaranty agency, or

the Secretary in the case of loans made, insured or guaranteed

under this subchapter and part C of subchapter I of chapter 34 of

title 42 that are held by the Secretary, may garnish the disposable

pay of an individual to collect the amount owed by the individual,

if he or she is not currently making required repayment under a

repayment agreement with the Secretary, or, in the case of a loan

guaranteed under part B of this subchapter on which the guaranty

agency received reimbursement from the Secretary under section

1078(c) of this title, with the guaranty agency holding the loan,

as appropriate, provided that -

(1) the amount deducted for any pay period may not exceed 10

percent of disposable pay, except that a greater percentage may

be deducted with the written consent of the individual involved;

(2) the individual shall be provided written notice, sent by

mail to the individual's last known address, a minimum of 30 days

prior to the initiation of proceedings, from the guaranty agency

or the Secretary, as appropriate, informing such individual of

the nature and amount of the loan obligation to be collected, the

intention of the guaranty agency or the Secretary, as

appropriate, to initiate proceedings to collect the debt through

deductions from pay, and an explanation of the rights of the

individual under this section;

(3) the individual shall be provided an opportunity to inspect

and copy records relating to the debt;

(4) the individual shall be provided an opportunity to enter

into a written agreement with the guaranty agency or the

Secretary, under terms agreeable to the Secretary, or the head of

the guaranty agency or his designee, as appropriate, to establish

a schedule for the repayment of the debt;

(5) the individual shall be provided an opportunity for a

hearing in accordance with subsection (b) of this section on the

determination of the Secretary or the guaranty agency, as

appropriate, concerning the existence or the amount of the debt,

and, in the case of an individual whose repayment schedule is

established other than by a written agreement pursuant to

paragraph (4), concerning the terms of the repayment schedule;

(6) the employer shall pay to the Secretary or the guaranty

agency as directed in the withholding order issued in this

action, and shall be liable for, and the Secretary or the

guaranty agency, as appropriate, may sue the employer in a State

or Federal court of competent jurisdiction to recover, any amount

that such employer fails to withhold from wages due an employee

following receipt of such employer of notice of the withholding

order, plus attorneys' fees, costs, and, in the court's

discretion, punitive damages, but such employer shall not be

required to vary the normal pay and disbursement cycles in order

to comply with this paragraph;

(7) if an individual has been reemployed within 12 months after

having been involuntarily separated from employment, no amount

may be deducted from the disposable pay of such individual until

such individual has been reemployed continuously for at least 12

months; and

(8) an employer may not discharge from employment, refuse to

employ, or take disciplinary action against an individual subject

to wage withholding in accordance with this section by reason of

the fact that the individual's wages have been subject to

garnishment under this section, and such individual may sue in a

State or Federal court of competent jurisdiction any employer who

takes such action. The court shall award attorneys' fees to a

prevailing employee and, in its discretion, may order

reinstatement of the individual, award punitive damages and back

pay to the employee, or order such other remedy as may be

reasonably necessary.

(b) Hearing requirements

A hearing described in subsection (a)(5) of this section shall be

provided prior to issuance of a garnishment order if the

individual, on or before the 15th day following the mailing of the

notice described in subsection (a)(2) of this section, and in

accordance with such procedures as the Secretary or the head of the

guaranty agency, as appropriate, may prescribe, files a petition

requesting such a hearing. If the individual does not file a

petition requesting a hearing prior to such date, the Secretary or

the guaranty agency, as appropriate, shall provide the individual a

hearing under subsection (a)(5) of this section upon request, but

such hearing need not be provided prior to issuance of a

garnishment order. A hearing under subsection (a)(5) of this

section may not be conducted by an individual under the supervision

or control of the head of the guaranty agency, except that nothing

in this sentence shall be construed to prohibit the appointment of

an administrative law judge. The hearing official shall issue a

final decision at the earliest practicable date, but not later than

60 days after the filing of the petition requesting the hearing.

(c) Notice requirements

The notice to the employer of the withholding order shall contain

only such information as may be necessary for the employer to

comply with the withholding order.

(d) No attachment of student assistance

Except as authorized in this section, notwithstanding any other

provision of Federal or State law, no grant, loan, or work

assistance awarded under this subchapter and part C of subchapter I

of chapter 34 of title 42, or property traceable to such

assistance, shall be subject to garnishment or attachment in order

to satisfy any debt owed by the student awarded such assistance,

other than a debt owed to the Secretary and arising under this

subchapter and part C of subchapter I of chapter 34 of title 42.

(e) ''Disposable pay'' defined

For the purpose of this section, the term ''disposable pay''

means that part of the compensation of any individual from an

employer remaining after the deduction of any amounts required by

law to be withheld.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 488A, as added Pub. L. 102-164,

title VI, Sec. 605(a), Nov. 15, 1991, 105 Stat. 1066; amended Pub.

L. 105-244, title IV, Sec. 490A, Oct. 7, 1998, 112 Stat. 1753.)

-MISC1-

AMENDMENTS

1998 - Subsecs. (d), (e). Pub. L. 105-244 added subsec. (d) and

redesignated former subsec. (d) as (e).

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1078-3 of this title.

-CITE-

20 USC Sec. 1096 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part F - General Provisions Relating to Student Assistance Programs

-HEAD-

Sec. 1096. Administrative expenses

-STATUTE-

(a) Amount of payments

From the sums appropriated for any fiscal year for the purpose of

the program authorized under subpart 1 of part A of this

subchapter, the Secretary shall reserve such sums as may be

necessary to pay to each institution with which he has an agreement

under section 1094 of this title, an amount equal to $5 for each

student at that institution who receives assistance under subpart 1

of part A of this subchapter. In addition, an institution which

has entered into an agreement with the Secretary under subpart 3 of

part A of this subchapter or part C of subchapter I of chapter 34

of title 42, or under part D of this subchapter shall be entitled

for each fiscal year which such institution disburses funds to

eligible students under any such part to a payment for the purpose

set forth in subsection (b) of this section. The payment for a

fiscal year shall be payable from each such allotment by payment in

accordance with regulations of the Secretary and shall be equal to

5 percent of the institution's first $2,750,000 of expenditures

plus 4 percent of the institution's expenditures greater than

$2,750,000 and less than $5,500,000, plus 3 percent of the

institution's expenditures in excess of $5,500,000 during the

fiscal year from the sum of its grants to students under subpart 3

of part A of this subchapter, its expenditures during such fiscal

year under part C of subchapter I of chapter 34 of title 42 for

compensation of students, and the principal amount of loans made

during such fiscal year from its student loan fund established

under part D of this subchapter, excluding the principal amount of

any such loans which the institution has agreed to assign under

section 1087cc(a)(6)(B) (FOOTNOTE 1) of this title. In addition,

the Secretary shall provide for payment to each institution of

higher education an amount equal to 100 percent of the costs

incurred by the institution in implementing and operating the

immigration status verification system under section 1091(h)

(FOOTNOTE 1) of this title.

(FOOTNOTE 1) See References in Text note below.

(b) Purpose of payments

(1) The sums paid to institutions under this part are for the

sole purpose of offsetting the administrative costs of the programs

described in subsection (a) of this section.

(2) If the institution enrolls a significant number of students

who are (A) attending the institution less than full time, or (B)

independent students, the institution shall use a reasonable

proportion of the funds available under this section for financial

aid services during times and in places that will most effectively

accommodate the needs of such students.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 489, as added Pub. L. 99-498, title

IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1491; amended Pub. L.

99-603, title I, Sec. 121(b)(7), Nov. 6, 1986, 100 Stat. 3391; Pub.

L. 100-50, Sec. 15(15), June 3, 1987, 101 Stat. 357; Pub. L.

102-325, title IV, Sec. 446(c), 493, July 23, 1992, 106 Stat. 567,

630; Pub. L. 103-208, Sec. 2(h)(44), (k)(6), Dec. 20, 1993, 107

Stat. 2478, 2486.)

-REFTEXT-

REFERENCES IN TEXT

Section 1087cc(a)(6)(B) of this title, referred to in subsec.

(a), was redesignated section 1087cc(a)(5)(B) by Pub. L. 105-244,

title IV, Sec. 463(a)(3), Oct. 7, 1998, 112 Stat. 1724.

Section 1091(h) of this title, referred to in subsec. (a), was

redesignated section 1091(g) by Pub. L. 103-208, Sec. 2(h)(25),

Dec. 20, 1993, 107 Stat. 2477.

-MISC2-

PRIOR PROVISIONS

A prior section 1096, Pub. L. 89-329, title IV, Sec. 489, as

added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.

1453; amended Pub. L. 97-35, title V, Sec. 537(a)(2), Aug. 13,

1981, 95 Stat. 456, related to administrative expenses, prior to

the general revision of this part by Pub. L. 99-498.

AMENDMENTS

1993 - Subsec. (a). Pub. L. 103-208, Sec. 2(k)(6), repealed Pub.

L. 102-325, Sec. 446(c). See 1992 Amendment note below.

Pub. L. 103-208, Sec. 2(h)(44), substituted ''1091(h) of this

title'' for ''1091(c) of this title''.

1992 - Subsec. (a). Pub. L. 102-325, Sec. 493(a)(3), substituted

''subpart 3'' for ''subpart 2'' in two places.

Pub. L. 102-325, Sec. 493(a)(1), (2), struck out ''(other than

section 2756a of title 42)'' before '', or under part D'' in second

sentence and struck out fourth sentence which read as follows:

''The payment for a fiscal year for the purpose of subsection (b)

of this section with respect to section 2756a of title 42 shall be

payable from each allotment under part C of subchapter I of chapter

34 of title 42 in accordance with regulations of the Secretary, and

shall be 10 percent of the institution's expenditures during such

fiscal year under such section.''

Pub. L. 102-325, Sec. 446(c), which directed amendment identical

to amendment by Pub. L. 102-325, Sec. 493(a)(1), (2), above, was

repealed by Pub. L. 103-208, Sec. 2(k)(6).

Subsec. (b). Pub. L. 102-325, Sec. 493(b), designated existing

provisions as par. (1) and added par. (2).

1987 - Subsec. (a). Pub. L. 100-50 made technical amendment to

reference to section 2756a of title 42 to correct reference to

corresponding section of original Act, requiring no change in text.

1986 - Subsec. (a). Pub. L. 99-603 inserted provision directing

the Secretary to pay the costs incurred by institutions of higher

education in implementing and operating the immigration status

verification system under section 1091(c) of this title.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective as if included in the

Higher Education Amendments of 1992, Pub. L. 102-325, except as

otherwise provided, see section 5(a) of Pub. L. 103-208, set out as

a note under section 1051 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by section 446(c) of Pub. L. 102-325 effective Oct. 1,

1992, see section 2 of Pub. L. 102-325, set out as a note under

section 1001 of this title.

Amendment by section 493 of Pub. L. 102-325, relating to payments

for administrative expenses, applicable with respect to funds

provided for award years beginning on or after July 1, 1993, see

section 498(7) of Pub. L. 102-325, set out as a note under section

1088 of this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-50 effective as if enacted as part of

the Higher Education Amendments of 1986, Pub. L. 99-498, see

section 27 of Pub. L. 100-50, set out as a note under section 1001

of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-603 effective Oct. 1, 1987, see section

121(c)(2) of Pub. L. 99-603, set out as a note under section 502 of

Title 42, The Public Health and Welfare.