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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-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part A - Strengthening Institutions

-HEAD-

Sec. 1059a. Applications

-STATUTE-

Each eligible institution desiring to receive assistance under

this part shall submit an application in accordance with the

requirements of section 1068 of this title.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 314, as added Pub. L. 105-244,

title III, Sec. 303(d), Oct. 7, 1998, 112 Stat. 1639.)

-MISC1-

PRIOR PROVISIONS

A prior section 1059a, Pub. L. 89-329, title III, Sec. 314, as

added Pub. L. 100-50, Sec. 2(b), June 3, 1987, 101 Stat. 336,

related to application review process, prior to repeal by Pub. L.

105-244, Sec. 3, title III, Sec. 303(d), Oct. 7, 1998, 112 Stat.

1585, 1639, effective Oct. 1, 1998.

EFFECTIVE DATE

Section effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC Sec. 1059b 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part A - Strengthening Institutions

-HEAD-

Sec. 1059b. Goals for financial management and academic program

-STATUTE-

(a) Goals

Any application for a grant under this part shall describe

measurable goals for the institution's financial management and

academic programs, and include a plan of how the applicant intends

to achieve those goals.

(b) Continuation requirements

Any continuation application shall demonstrate the progress made

toward achievement of the goals described pursuant to subsection

(a) of this section.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 315, as added Pub. L. 102-325,

title III, Sec. 302(d)(1), July 23, 1992, 106 Stat. 472.)

-MISC1-

EFFECTIVE DATE

Section effective Oct. 1, 1992, see section 2 of Pub. L. 102-325,

set out as an Effective Date of 1992 Amendment note under section

1001 of this title.

-CITE-

20 USC Sec. 1059c 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part A - Strengthening Institutions

-HEAD-

Sec. 1059c. American Indian tribally controlled colleges and

universities

-STATUTE-

(a) Program authorized

The Secretary shall provide grants and related assistance to

Indian Tribal Colleges and Universities to enable such institutions

to improve and expand their capacity to serve Indian students.

(b) Definitions

In this section:

(1) Indian

The term ''Indian'' has the meaning given the term in section

1801 of title 25.

(2) Indian tribe

The term ''Indian tribe'' has the meaning given the term in

section 1801 of title 25.

(3) Tribal College or University

The term ''Tribal College or University'' has the meaning give

the term ''tribally controlled college or university'' in section

1801 of title 25, and includes an institution listed in the

Equity in Educational Land Grant Status Act of 1994.

(4) Institution of higher education

The term ''institution of higher education'' means an

institution of higher education as defined in section 1001(a) of

this title, except that paragraph (2) of such section shall not

apply.

(c) Authorized activities

(1) In general

Grants awarded under this section shall be used by Tribal

Colleges or Universities to assist such institutions to plan,

develop, undertake, and carry out activities to improve and

expand such institutions' capacity to serve Indian students.

(2) Examples of authorized activities

The activities described in paragraph (1) may include -

(A) purchase, rental, or lease of scientific or laboratory

equipment for educational purposes, including instructional and

research purposes;

(B) construction, maintenance, renovation, and improvement in

classrooms, libraries, laboratories, and other instructional

facilities, including purchase or rental of telecommunications

technology equipment or services;

(C) support of faculty exchanges, faculty development, and

faculty fellowships to assist in attaining advanced degrees in

the faculty's field of instruction;

(D) academic instruction in disciplines in which Indians are

underrepresented;

(E) purchase of library books, periodicals, and other

educational materials, including telecommunications program

material;

(F) tutoring, counseling, and student service programs

designed to improve academic success;

(G) funds management, administrative management, and

acquisition of equipment for use in strengthening funds

management;

(H) joint use of facilities, such as laboratories and

libraries;

(I) establishing or improving a development office to

strengthen or improve contributions from alumni and the private

sector;

(J) establishing or enhancing a program of teacher education

designed to qualify students to teach in elementary schools or

secondary schools, with a particular emphasis on teaching

Indian children and youth, that shall include, as part of such

program, preparation for teacher certification;

(K) establishing community outreach programs that encourage

Indian elementary school and secondary school students to

develop the academic skills and the interest to pursue

postsecondary education; and

(L) other activities proposed in the application submitted

pursuant to subsection (d) of this section that -

(i) contribute to carrying out the activities described in

subparagraphs (A) through (K); and

(ii) are approved by the Secretary as part of the review

and acceptance of such application.

(3) Endowment fund

(A) In general

A Tribal College or University may use not more than 20

percent of the grant funds provided under this section to

establish or increase an endowment fund at the institution.

(B) Matching requirement

In order to be eligible to use grant funds in accordance with

subparagraph (A), the Tribal College or University shall

provide matching funds, in an amount equal to the Federal funds

used in accordance with subparagraph (A), for the establishment

or increase of the endowment fund.

(C) Comparability

The provisions of part C of this subchapter regarding the

establishment or increase of an endowment fund, that the

Secretary determines are not inconsistent with this paragraph,

shall apply to funds used under subparagraph (A).

(d) Application process

(1) Institutional eligibility

To be eligible to receive assistance under this section, a

Tribal College or University shall be an eligible institution

under section 1058(b) of this title.

(2) Application

Any Tribal College or University desiring to receive assistance

under this section shall submit an application to the Secretary

at such time, and in such manner, as the Secretary may by

regulation reasonably require. The Secretary shall, to the

extent possible, prescribe a simplified and streamlined format

for such applications that takes into account the limited number

of institutions that are eligible for assistance under this

section. Each such application shall include -

(A) a 5-year plan for improving the assistance provided by

the Tribal College or University to Indian students, increasing

the rates at which Indian secondary school students enroll in

higher education, and increasing overall postsecondary

retention rates for Indian students; and

(B) such enrollment data and other information and assurances

as the Secretary may require to demonstrate compliance with

paragraph (1).

(3) Special rules

(A) Eligibility

No Tribal College or University that receives funds under

this section shall concurrently receive funds under other

provisions of this part or part B of this subchapter.

(B) Exemption

Section 1059(d) of this title shall not apply to institutions

that are eligible to receive funds under this section.

(C) Distribution

In awarding grants under this section, the Secretary shall,

to the extent possible and consistent with the competitive

process under which such grants are awarded, ensure maximum and

equitable distribution among all eligible institutions.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 316, as added Pub. L. 102-325,

title III, Sec. 302(d)(1), July 23, 1992, 106 Stat. 473; amended

Pub. L. 103-208, Sec. 2(a)(7), Dec. 20, 1993, 107 Stat. 2457; Pub.

L. 105-244, title III, Sec. 303(e), Oct. 7, 1998, 112 Stat. 1639;

Pub. L. 106-211, Sec. 1(a), (b)(1), May 26, 2000, 114 Stat. 330.)

-REFTEXT-

REFERENCES IN TEXT

The Equity in Educational Land Grant Status Act of 1994, referred

to in subsec. (b)(3), means the Equity in Educational Land-Grant

Status Act of 1994, Pub. L. 103-382, title V, part C, Oct. 20,

1994, 108 Stat. 4048, as amended, which is set out as a note under

section 301 of Title 7, Agriculture.

-MISC2-

AMENDMENTS

2000 - Subsec. (d)(2). Pub. L. 106-211, Sec. 1(a), inserted after

first sentence ''The Secretary shall, to the extent possible,

prescribe a simplified and streamlined format for such applications

that takes into account the limited number of institutions that are

eligible for assistance under this section.''

Subsec. (d)(3). Pub. L. 106-211, Sec. 1(b)(1), added par. (3) and

struck out heading and text of former par. (3). Text read as

follows: ''For the purposes of this part, no Tribal College or

University that is eligible for and receives funds under this

section may concurrently receive other funds under this part or

part B of this subchapter.''

1998 - Pub. L. 105-244 amended section catchline and text

generally. Prior to amendment, text consisted of subsecs. (a) to

(e) authorizing grants and related assistance to Hispanic-serving

institutions to enable such institutions to improve and expand

their capacity to serve Hispanic and other low-income students.

1993 - Subsec. (c). Pub. L. 103-208 substituted ''(2) Examples of

authorized activities. - Such programs may include - '' for ''Such

programs may include - ''.

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-211, Sec. 1(c), May 26, 2000, 114 Stat. 331, provided

that: ''The amendments made by this Act (amending this section and

section 1059d of this title) shall be effective on the date of the

enactment of this Act (May 26, 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 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

Section effective Oct. 1, 1992, see section 2 of Pub. L. 102-325,

set out as an Effective Date of 1992 Amendment note under section

1001 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1068, 1068h of this

title; title 7 sections 1926, 2206a, 3103.

-CITE-

20 USC Sec. 1059d 01/06/03

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TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part A - Strengthening Institutions

-HEAD-

Sec. 1059d. Alaska Native and Native Hawaiian-serving institutions

-STATUTE-

(a) Program authorized

The Secretary shall provide grants and related assistance to

Alaska Native-serving institutions and Native Hawaiian-serving

institutions to enable such institutions to improve and expand

their capacity to serve Alaska Natives and Native Hawaiians.

(b) Definitions

For the purpose of this section -

(1) the term ''Alaska Native'' has the meaning given the term

in section 7546 of this title;

(2) the term ''Alaska Native-serving institution'' means an

institution of higher education that -

(A) is an eligible institution under section 1058(b) of this

title; and

(B) at the time of application, has an enrollment of

undergraduate students that is at least 20 percent Alaska

Native students;

(3) the term ''Native Hawaiian'' has the meaning given the term

in section 7517 of this title; and

(4) the term ''Native Hawaiian-serving institution'' means an

institution of higher education which -

(A) is an eligible institution under section 1058(b) of this

title; and

(B) at the time of application, has an enrollment of

undergraduate students that is at least 10 percent Native

Hawaiian students.

(c) Authorized activities

(1) Types of activities authorized

Grants awarded under this section shall be used by Alaska

Native-serving institutions and Native Hawaiian-serving

institutions to assist such institutions to plan, develop,

undertake, and carry out activities to improve and expand such

institutions' capacity to serve Alaska Natives or Native

Hawaiians.

(2) Examples of authorized activities

Such programs may include -

(A) purchase, rental, or lease of scientific or laboratory

equipment for educational purposes, including instructional and

research purposes;

(B) renovation and improvement in classroom, library,

laboratory, and other instructional facilities;

(C) support of faculty exchanges, and faculty development and

faculty fellowships to assist in attaining advanced degrees in

the faculty's field of instruction;

(D) curriculum development and academic instruction;

(E) purchase of library books, periodicals, microfilm, and

other educational materials;

(F) funds and administrative management, and acquisition of

equipment for use in strengthening funds management;

(G) joint use of facilities such as laboratories and

libraries; and

(H) academic tutoring and counseling programs and student

support services.

(d) Application process

(1) Institutional eligibility

Each Alaska Native-serving institution and Native

Hawaiian-serving institution desiring to receive assistance under

this section shall submit to the Secretary such enrollment data

as may be necessary to demonstrate that the institution is an

Alaska Native-serving institution or a Native Hawaiian-serving

institution as defined in subsection (b) of this section, along

with such other information and data as the Secretary may by

regulation require.

(2) Applications

Any institution which is determined by the Secretary to be an

Alaska Native-serving institution or a Native Hawaiian-serving

institution may submit an application for assistance under this

section to the Secretary. The Secretary shall, to the extent

possible, prescribe a simplified and streamlined format for such

applications that takes into account the limited number of

institutions that are eligible for assistance under this

section. Such application shall include -

(A) a 5-year plan for improving the assistance provided by

the Alaska Native-serving institution or the Native

Hawaiian-serving institution to Alaska Native or Native

Hawaiian students; and

(B) such other information and assurance as the Secretary may

require.

(3) Special rules

(A) Eligibility

No Alaskan Native-serving institution or Native

Hawaiian-serving institution that receives funds under this

section shall concurrently receive funds under other provisions

of this part or part B of this subchapter.

(B) Exemption

Section 1059(d) of this title shall not apply to institutions

that are eligible to receive funds under this section.

(C) Distribution

In awarding grants under this section, the Secretary shall,

to the extent possible and consistent with the competitive

process under which such grants are awarded, ensure maximum and

equitable distribution among all eligible institutions.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 317, as added Pub. L. 105-244,

title III, Sec. 303(f), Oct. 7, 1998, 112 Stat. 1641; amended Pub.

L. 106-211, Sec. 1(a), (b)(2), May 26, 2000, 114 Stat. 330; Pub. L.

107-110, title VII, Sec. 702(a), Jan. 8, 2002, 115 Stat. 1946.)

-MISC1-

AMENDMENTS

2002 - Subsec. (b)(1). Pub. L. 107-110, Sec. 702(a)(1),

substituted ''section 7546'' for ''section 7938''.

Subsec. (b)(3). Pub. L. 107-110, Sec. 702(a)(2), substituted

''section 7517'' for ''section 7912''.

2000 - Subsec. (d)(2). Pub. L. 106-211, Sec. 1(a), inserted after

first sentence ''The Secretary shall, to the extent possible,

prescribe a simplified and streamlined format for such applications

that takes into account the limited number of institutions that are

eligible for assistance under this section.''

Subsec. (d)(3). Pub. L. 106-211, Sec. 1(b)(2), added par. (3).

Subsec. (e). Pub. L. 106-211, Sec. 1(b)(2), struck out heading

and text of subsec. (e). Text read as follows: ''For the purposes

of this section, no Alaska Native-serving institution or Native

Hawaiian-serving institution which is eligible for and receives

funds under this section may concurrently receive other funds under

this part or part B of this subchapter.''

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-110 effective Jan. 8, 2002, except with

respect to certain noncompetitive programs and competitive

programs, see section 5 of Pub. L. 107-110, set out as an Effective

Date note under section 6301 of this title.

EFFECTIVE DATE

Section effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1068h, 1085 of this

title.

-CITE-

20 USC Part B - Strengthening Historically Black Colleges

and Universities 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part B - Strengthening Historically Black Colleges and Universities

.

-HEAD-

Part B - Strengthening Historically Black Colleges and Universities

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 1057, 1058, 1059c, 1059d,

1063c, 1065, 1068b, 1068c, 1068d, 1068h, 1070a, 1070a-14, 1085,

1101d, 1124, 1131 of this title.

-CITE-

20 USC Sec. 1060 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part B - Strengthening Historically Black Colleges and Universities

-HEAD-

Sec. 1060. Findings and purposes

-STATUTE-

The Congress finds that -

(1) the historically Black colleges and universities have

contributed significantly to the effort to attain equal

opportunity through postsecondary education for Black,

low-income, and educationally disadvantaged Americans;

(2) States and the Federal Government have discriminated in the

allocation of land and financial resources to support Black

public institutions under the Morrill Act of 1862 (7 U.S.C. 301

et seq.) and its progeny, and against public and private Black

colleges and universities in the award of Federal grants and

contracts, and the distribution of Federal resources under this

chapter and other Federal programs which benefit institutions of

higher education;

(3) the current state of Black colleges and universities is

partly attributable to the discriminatory action of the States

and the Federal Government and this discriminatory action

requires the remedy of enhancement of Black postsecondary

institutions to ensure their continuation and participation in

fulfilling the Federal mission of equality of educational

opportunity; and

(4) financial assistance to establish or strengthen the

physical plants, financial management, academic resources, and

endowments of the historically Black colleges and universities

are appropriate methods to enhance these institutions and

facilitate a decrease in reliance on governmental financial

support and to encourage reliance on endowments and private

sources.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 321, as added Pub. L. 99-498,

title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1294.)

-REFTEXT-

REFERENCES IN TEXT

The Morrill Act of 1862, referred to in par. (2), is act July 2,

1862, ch. 130, 12 Stat. 503, as amended, also known as the First

Morrill Act, which is classified generally to subchapter I (Sec.

301 et seq.) of chapter 13 of Title 7, Agriculture. For complete

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

out under section 301 of Title 7 and Tables.

This chapter, referred to in par. (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.

-MISC2-

PRIOR PROVISIONS

A prior section 1060, Pub. L. 89-329, title III, Sec. 321, as

added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat.

1393, set out purpose and grant authority for program of aiding

institutions with special needs, prior to the general revision of

this subchapter by Pub. L. 99-498.

Another prior section 1060, Pub. L. 90-575, title V, Sec. 504,

Oct. 16, 1968, 82 Stat. 1062, related to eligibility for student

assistance because of conviction of crimes involving force,

disruption, or seizure of property of educational institution;

refusal to obey regulations or orders and disruption of

administration of institution; other misconduct, disciplinary

proceedings, and freedom of expression; and description of programs

covered by such disqualification, prior to repeal by Pub. L.

92-318, title I, Sec. 139B(b), June 23, 1972, 86 Stat. 282.

-EXEC-

EXECUTIVE ORDER NO. 12320

Ex. Ord. No. 12320, Sept. 15, 1981, 46 F.R. 46107, which provided

for the development of a Federal program to achieve a significant

increase in the participation by historically Black colleges and

universities in Federally sponsored programs, was revoked by Ex.

Ord. No. 12677, Apr. 28, 1989, 54 F.R. 18869, formerly set out

below.

EXECUTIVE ORDER NO. 12677

Ex. Ord. No. 12677, Apr. 28, 1989, 54 F.R. 18869, which provided

for the development of a Federal program to achieve a significant

increase in the participation by historically Black colleges and

universities in Federally sponsored programs, was revoked by Ex.

Ord. No. 12876, Sec. 13, Nov. 1, 1993, 58 F.R. 58735, formerly set

out below.

EXECUTIVE ORDER NO. 12876

Ex. Ord. No. 12876, Nov. 1, 1993, 58 F.R. 58735, which

established in the Department of Education the President's Board of

Advisors on Historically Black Colleges and Universities, a

Presidential advisory committee, was revoked by Ex. Ord. No. 13256,

Sec. 11, Feb. 12, 2002, 67 F.R. 6825, set out below.

EX. ORD. NO. 13256. PRESIDENT'S BOARD OF ADVISORS ON HISTORICALLY

BLACK COLLEGES AND UNIVERSITIES

Ex. Ord. No. 13256, Feb. 12, 2002, 67 F.R. 6823, provided:

By the authority vested in me as President by the Constitution

and the laws of the United States of America, in order to advance

the development of the Nation's full human potential and to advance

equal opportunity in higher education, to strengthen the capacity

of historically black colleges and universities to provide the

highest quality education, and to increase opportunities for these

institutions to participate in and benefit from Federal programs,

as do other colleges and universities, it is hereby ordered as

follows:

Section 1. There is established, in the Office of the Secretary

of Education, a Presidential advisory committee entitled the

''President's Board of Advisors on Historically Black Colleges and

Universities'' (Board). The Board shall prepare and issue an annual

report to the President on the results of the participation of

historically black colleges and universities in Federal programs.

The Board also shall provide advice to the President and to the

Secretary of Education (Secretary) regarding the needs of

historically black colleges and universities in the areas of

infrastructure, academic programs, and faculty and institutional

development. In the annual report to the President, the Board

shall make recommendations on how to increase the private sector

role, including the role of private foundations, in strengthening

historically black colleges and universities. Particular emphasis

should also be given in the report to enhancing institutional

planning and development, strengthening fiscal stability and

financial management, and improving institutional infrastructure,

including the use of technology, to ensure the long-term viability

and enhancement of these institutions.

Sec. 2. The Board shall be appointed by the President. The Board

membership shall include sitting presidents of historically black

colleges and universities, representatives of other higher

education institutions, business and financial leaders,

representatives of private foundations, and secondary school

administrators. The President shall designate a Chair or Co-Chairs

from among the members.

Sec. 3. The White House Initiative on Historically Black Colleges

and Universities (Initiative), located in the Office of the

Secretary of Education, shall: (1) provide staff, resources, and

assistance to the Board; (2) assist the Secretary in performing the

liaison function between the executive branch and historically

black colleges and universities; and (3) serve the Secretary in

carrying out the responsibilities described in section 6 of this

order.

Sec. 4. To carry out this order, each executive department and

agency identified by the Secretary may, consistent with applicable

law and regulations, enter into appropriate grants, contracts, or

cooperative agreements with historically black colleges and

universities. The head of each department or agency so identified

shall establish an annual plan that will establish clear goals for

how the department or agency intends to increase the capacity of

historically black colleges and universities to compete effectively

for grants, contracts, or cooperative agreements and to encourage

historically black colleges and universities to participate in

Federal programs. The department's or agency's annual goal should

be clearly reflected in the department's or agency's annual budget

submission to the Office of Management and Budget. To facilitate

the attainment of these goals, the head of each department or

agency identified by the Secretary shall provide, as appropriate,

technical assistance and information to historically black colleges

and universities regarding the program activities of the department

or agency and the preparation of applications or proposals for

grants, contracts, or cooperative agreements.

Sec. 5. Each executive department and agency identified by the

Secretary shall appoint a senior official, who is a full-time

officer of the Federal Government, to report directly to the

department or agency head with respect to department or agency

activity under this order, and to serve as liaison to the Board and

to the Initiative. To the extent permitted by law and regulations,

each executive department and agency identified by the Secretary

shall provide appropriate information requested by the Board and

staff pursuant to the order.

Sec. 6. Each executive department and agency identified by the

Secretary shall develop an annual plan for, and shall document the

agency's effort in, increasing the capacity of historically black

colleges and universities to participate in Federal programs. Each

department's and agency's plan shall describe new or existing

department and agency programs and measurable objectives for

proposed department and agency actions, in connection with those

programs, to achieve the purposes of this order. These plans shall

be submitted at such time and in such form as the Secretary shall

require. In consultation with the participating departments and

agencies, the Secretary shall review the plans and develop, with

the advice of the Board, an integrated Annual Federal Plan for

Assistance to Historically Black Colleges and Universities for

submission to the President. The Secretary shall provide the

president of each historically black college and university with a

copy of, and an opportunity to comment on, the proposed Annual

Federal Plan prior to its submission to the President. Each

participating department and agency shall submit to the Secretary

an Annual Performance Report that shall measure each department's

and agency's performance against the objectives set forth in the

department's or agency's annual plan. The Secretary shall be

responsible for monitoring compliance with the Annual Federal Plan

after it is approved by the President.

Sec. 7. In developing its annual plan, each executive department

and agency identified by the Secretary shall emphasize programs and

activities that develop the capacity of historically black colleges

and universities to contribute to the development of human capital

and to strengthen America's economic and technological base

through: (1) infrastructure development and acquisitions for

instruction and research; (2) student and faculty doctoral

fellowships and faculty development; (3) domestic and international

faculty and student exchanges and study-abroad opportunities; (4)

undergraduate and graduate student internships; and (5) summer,

part-time, and permanent employment opportunities.

Sec. 8. Each year, the Board shall report to the President on the

progress achieved in enhancing the capacity of historically black

colleges and universities to serve their students, including

findings and recommendations for individual departments and

agencies in connection with their Annual Performance Reports, as

described in section 6 of this order.

Sec. 9. The Board, in consultation with the Department of

Education and other executive departments and agencies, shall

develop a Private Sector Strategy to assist historically black

colleges and universities in: (1) increasing voluntary

private-sector contributions to support the enhancement of

endowments and the overall financial stability of such

institutions; (2) improving and enhancing the quality and number of

private-sector partnerships focused on academic program

development, student achievement and faculty development,

cooperative research and development projects, and faculty

exchanges; and (3) improving information management, and

facilities, and strengthening academic course offerings.

Sec. 10. (a) The provisions in this Executive Order shall be

implemented to the fullest extent permitted by law.

(b) The Department of Education shall provide funding and

administrative support for the Board and the Initiative.

(c) Members of the Board shall serve without compensation, but

shall be reimbursed for all travel expenses, including per diem in

lieu of subsistence, as authorized by law;

(d) Insofar as the Federal Advisory Committee Act, as amended (5

App. U.S.C.), may apply to the Board, any functions of the

President under that Act, except for those in section 6 of that

Act, shall be performed by the Department of Education, in

accordance with the guidelines that have been issued by the

Administrator of General Services.

Sec. 11. Executive Order 12876 of November 1, 1993, as amended,

is hereby revoked. George W. Bush.

EXTENSION OF TERM OF PRESIDENT'S BOARD OF ADVISORS ON HISTORICALLY

BLACK COLLEGES AND UNIVERSITIES

Term of President's Board of Advisors on Historically Black

Colleges and Universities extended until Sept. 30, 1997, by Ex.

Ord. No. 12974, Sept. 29, 1995, 60 F.R. 51875, formerly set out as

a note under section 14 of the Federal Advisory Committee Act in

the Appendix to Title 5, Government Organization and Employees.

Term of President's Board of Advisors on Historically Black

Colleges and Universities extended until Sept. 30, 1999, by Ex.

Ord. No. 13062, Sec. 1(e), Sept. 29, 1997, 62 F.R. 51755, formerly

set out as a note under section 14 of the Federal Advisory

Committee Act in the Appendix to Title 5.

Term of President's Board of Advisors on Historically Black

Colleges and Universities extended until Sept. 30, 2001, by Ex.

Ord. No. 13138, Sept. 30, 1999, 64 F.R. 53879, formerly set out as

a note under section 14 of the Federal Advisory Committee Act in

the Appendix to Title 5.

Term of President's Board of Advisors on Historically Black

Colleges and Universities extended until Sept. 30, 2003, by Ex.

Ord. No. 13225, Sept. 28, 2001, 66 F.R. 50291, set out as a note

under section 14 of the Federal Advisory Committee Act in the

Appendix to Title 5.

DETERMINATIONS REGARDING PRESIDENT'S BOARD OF ADVISORS

Memorandum of the President of the United States, Aug. 17, 1990,

55 F.R. 46491, provided:

Memorandum for the Secretary of Education

By virtue of the authority vested in me as President by the

Constitution and the laws of the United States of America,

including section 208 of title 18 of the United States Code and

section 301 of title 3 of the United States Code, I hereby delegate

to the Secretary of Education my authority to make determinations

under subsection (b) of section 208 of title 18, United States

Code, for the members of the President's Board of Advisors on

Historically Black Colleges and Universities, established pursuant

to Executive Order 12677 of April 28, 1989 (formerly set out

above).

This memorandum shall be published in the Federal Register.

George Bush.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1061 of this title.

-CITE-

20 USC Sec. 1061 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part B - Strengthening Historically Black Colleges and Universities

-HEAD-

Sec. 1061. Definitions

-STATUTE-

For the purpose of this part:

(1) The term ''graduate'' means an individual who has attended

an institution for at least three semesters and fulfilled

academic requirements for undergraduate studies in not more than

5 consecutive school years.

(2) The term ''part B institution'' means any historically

Black college or university that was established prior to 1964,

whose principal mission was, and is, the education of Black

Americans, and that is accredited by a nationally recognized

accrediting agency or association determined by the Secretary to

be a reliable authority as to the quality of training offered or

is, according to such an agency or association, making reasonable

progress toward accreditation,, (FOOTNOTE 1) except that any

branch campus of a southern institution of higher education that

prior to September 30, 1986, received a grant as an institution

with special needs under section 1060 of this title and was

formally recognized by the National Center for Education

Statistics as a Historically Black College or University but was

determined not to be a part B institution on or after October 17,

1986, shall, from July 18, 1988, be considered a part B

institution.

(FOOTNOTE 1) So in original.

(3) The term ''Pell Grant recipient'' means a recipient of

financial aid under subpart 1 of part A of subchapter IV of this

chapter.

(4) The term ''professional and academic areas in which Blacks

are underrepresented'' shall be determined by the Secretary and

the Commissioner of the Bureau of Labor Statistics, on the basis

of the most recent available satisfactory data, as professional

and academic areas in which the percentage of Black Americans who

have been educated, trained, and employed is less than the

percentage of Blacks in the general population.

(5) The term ''school year'' means the period of 12 months

beginning July 1 of any calendar year and ending June 30 of the

following calendar year.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 322, as added Pub. L. 99-498,

title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1294; amended Pub.

L. 100-369, Sec. 10(c), July 18, 1988, 102 Stat. 838.)

-MISC1-

PRIOR PROVISIONS

A prior section 1061, Pub. L. 89-329, title III, Sec. 322, as

added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat.

1393, defined terms used in this part, prior to the general

revision of this subchapter by Pub. L. 99-498.

Another prior section 1061, Pub. L. 89-329, title IV, Sec. 401,

Nov. 8, 1965, 79 Stat. 1232; Pub. L. 90-575, title I, Sec. 101(a),

(b)(1), Oct. 16, 1968, 82 Stat. 1017; Pub. L. 91-95, Sec. 4, Oct.

22, 1969, 83 Stat. 143; Pub. L. 92-318, title I, Sec. 131(a)(1)(A),

June 23, 1972, 86 Stat. 247, related to statement of purpose and

authorization of appropriations for educational opportunity grants,

prior to the general revision of part A of subchapter IV of this

chapter by Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972,

86 Stat. 247.

AMENDMENTS

1988 - Par. (2). Pub. L. 100-369 inserted '',, except that any

branch campus of a southern institution of higher education that

prior to September 30, 1986, received a grant as an institution

with special needs under section 1060 of this title and was

formally recognized by the National Center for Education Statistics

as a Historically Black College or University but was determined

not to be a part B institution on or after October 17, 1986, shall,

from July 18, 1988, be considered a part B institution'' after

''accreditation''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1085, 1131-1, 1131a,

1131c, 9501 of this title; title 25 section 1809; title 29 section

718; title 42 sections 1862d, 3032a, 5197h.

-CITE-

20 USC Sec. 1062 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part B - Strengthening Historically Black Colleges and Universities

-HEAD-

Sec. 1062. Grants to institutions

-STATUTE-

(a) General authorization; uses of funds

From amounts available under section 1069f(a)(2) (FOOTNOTE 1) of

this title in any fiscal year the Secretary shall make grants

(under section 1063 of this title) to institutions which have

applications approved by the Secretary (under section 1063a of this

title) for any of the following uses:

(FOOTNOTE 1) See References in Text note below.

(1) Purchase, rental, or lease of scientific or laboratory

equipment for educational purposes, including instructional and

research purposes.

(2) Construction, maintenance, renovation, and improvement in

classroom, library, laboratory, and other instructional

facilities, including purchase or rental of telecommunications

technology equipment or services.

(3) Support of faculty exchanges, and faculty development and

faculty fellowships to assist in attaining advanced degrees in

their field of instruction.

(4) Academic instruction in disciplines in which Black

Americans are underrepresented.

(5) Purchase of library books, periodicals, microfilm, and

other educational materials, including telecommunications program

materials.

(6) Tutoring, counseling, and student service programs designed

to improve academic success.

(7) Funds and administrative management, and acquisition of

equipment for use in strengthening funds management.

(8) Joint use of facilities, such as laboratories and

libraries.

(9) Establishing or improving a development office to

strengthen or improve contributions from alumni and the private

sector.

(10) Establishing or enhancing a program of teacher education

designed to qualify students to teach in a public elementary or

secondary school in the State that shall include, as part of such

program, preparation for teacher certification.

(11) Establishing community outreach programs which will

encourage elementary and secondary students to develop the

academic skills and the interest to pursue postsecondary

education.

(12) Other activities proposed in the application submitted

pursuant to section 1063a of this title that -

(A) contribute to carrying out the purposes of this part; and

(B) are approved by the Secretary as part of the review and

acceptance of such application.

(b) Endowment fund

(1) In general

An institution may use not more than 20 percent of the grant

funds provided under this part to establish or increase an

endowment fund at the institution.

(2) Matching requirement

In order to be eligible to use grant funds in accordance with

paragraph (1), the eligible institution shall provide matching

funds from non-Federal sources, in an amount equal to or greater

than the Federal funds used in accordance with paragraph (1), for

the establishment or increase of the endowment fund.

(3) Comparability

The provisions of part C of this subchapter regarding the

establishment or increase of an endowment fund, that the

Secretary determines are not inconsistent with this subsection,

shall apply to funds used under paragraph (1).

(c) Limitations

(1) No grant may be made under this chapter for any educational

program, activity, or service related to sectarian instruction or

religious worship, or provided by a school or department of

divinity. For the purpose of this subsection, the term ''school or

department of divinity'' means an institution whose program is

specifically for the education of students to prepare them to

become ministers of religion or to enter upon some other religious

vocation, or to prepare them to teach theological subjects.

(2) Not more than 50 percent of the allotment of any institution

may be available for the purpose of constructing or maintaining a

classroom, library, laboratory, or other instructional facility.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 323, as added Pub. L. 99-498,

title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1295; amended Pub.

L. 100-50, Sec. 2(a)(7), June 3, 1987, 101 Stat. 335; Pub. L.

100-369, Sec. 10(b), July 18, 1988, 102 Stat. 838; Pub. L. 102-325,

title III, Sec. 303(a), (b), July 23, 1992, 106 Stat. 474, 475;

Pub. L. 103-208, Sec. 2(a)(8), Dec. 20, 1993, 107 Stat. 2457; Pub.

L. 105-244, title III, Sec. 304(a), Oct. 7, 1998, 112 Stat. 1642.)

-REFTEXT-

REFERENCES IN TEXT

Section 1069f(a)(2) of this title, referred to in subsec. (a),

was in the original a reference to section 360(a)(2) of Pub. L.

89-329. Section 360 of Pub. L. 89-329 was renumbered section 399 of

Pub. L. 89-329 by Pub. L. 105-244, title III, Sec. 301(a)(2), Oct.

7, 1998, 112 Stat. 1636, and was transferred to section 1068h of

this title.

This chapter, referred to in subsec. (c)(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 1062, Pub. L. 89-329, title III, Sec. 323, as

added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat.

1395, provided for duration of grants to institutions with special

needs, prior to the general revision of this subchapter by Pub. L.

99-498.

Another prior section 1062, Pub. L. 89-329, title IV, Sec. 402,

Nov. 8, 1965, 79 Stat. 1232; Pub. L. 90-575, title I, Sec. 102,

Oct. 16, 1968, 82 Stat. 1017, related to determination of amount of

grant and establishment of basic criteria or schedules, prior to

the general revision of part A of subchapter IV of this chapter by

Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972, 86 Stat.

247.

AMENDMENTS

1998 - Subsecs. (b), (c). Pub. L. 105-244, Sec. 304(a)(1), (2),

added subsec. (b) and redesignated former subsec. (b) as (c).

Subsec. (c)(3). Pub. L. 105-244, Sec. 304(a)(3), struck out par.

(3) which read as follows: ''The Secretary shall not award a grant

under this part for telecommunications technology equipment,

facilities or services, if such equipment, facilities or services

are available pursuant to section 396(k) of title 47.''

1993 - Subsec. (b)(3). Pub. L. 103-208 realigned margin.

1992 - Subsec. (a)(2). Pub. L. 102-325, Sec. 303(a)(1), inserted

'', including purchase or rental of telecommunications technology

equipment or services'' after ''facilities''.

Subsec. (a)(5). Pub. L. 102-325, Sec. 303(a)(2), inserted '',

including telecommunications program materials'' after

''materials''.

Subsec. (a)(9) to (12). Pub. L. 102-325, Sec. 303(a)(3), added

pars. (9) to (12).

Subsec. (b)(3). Pub. L. 102-325, Sec. 303(b), added par. (3).

1988 - Subsec. (a)(3). Pub. L. 100-369, Sec. 10(b)(1), inserted

'', and faculty development'' after ''exchanges''.

Subsec. (a)(7), (8). Pub. L. 100-369, Sec. 10(b)(2), added pars.

(7) and (8).

1987 - Subsec. (a). Pub. L. 100-50 substituted ''section

1069f(a)(2) of this title'' for ''section 1069d(a)(2) of this

title''.

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 1992 AMENDMENT

Amendment by 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.

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 1063a, 1068, 1068b, 1068c

of this title.

-CITE-

20 USC Sec. 1063 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part B - Strengthening Historically Black Colleges and Universities

-HEAD-

Sec. 1063. Allotments to institutions

-STATUTE-

(a) Allotment; Pell Grant basis

From the amounts appropriated to carry out this part for any

fiscal year, the Secretary shall allot to each part B institution a

sum which bears the same ratio to one-half that amount as the

number of Pell Grant recipients in attendance at such institution

at the end of the school year preceding the beginning of that

fiscal year bears to the total number of Pell Grant recipients at

all part B institutions.

(b) Allotment; graduates basis

From the amounts appropriated to carry out this part for any

fiscal year, the Secretary shall allot to each part B institution a

sum which bears the same ratio to one-fourth that amount as the

number of graduates for such school year at such institution bears

to the total number of graduates for such school year at all part B

institutions.

(c) Allotment; graduate and professional student basis

From the amounts appropriated to carry out this part for any

fiscal year, the Secretary shall allot to each part B institution a

sum which bears the same ratio to one-fourth of that amount as the

percentage of graduates per institution, who are admitted to and in

attendance at, within 5 years of graduation with a baccalaureate

degree, a graduate or professional school in a degree program in

disciplines in which Blacks are underrepresented, bears to the

percentage of such graduates per institution for all part B

institutions.

(d) Minimum allotment

(1) Notwithstanding subsections (a), (b), and (c) of this

section, the amount allotted to each part B institution under this

section shall not be less than $500,000.

(2) If the amount appropriated pursuant to section 1069f(a)(2)(A)

(FOOTNOTE 1) of this title for any fiscal year is not sufficient to

pay the minimum allotment required by paragraph (1) of this

subsection to all part B institutions, the amount of such minimum

allotments shall be ratably reduced. If additional sums become

available for such fiscal year, such reduced allocation shall be

increased on the same basis as they were reduced (until the amount

allotted equals the minimum allotment required by paragraph (1)).

(FOOTNOTE 1) See References in Text note below.

(e) Reallotment

The amount of any part B institution's allotment under subsection

(a), (b), (c), or (d) of this section for any fiscal year which the

Secretary determines will not be required for such institution for

the period such allotment is available shall be available for

reallotment from time to time on such date during such period as

the Secretary may determine to other part B institutions in

proportion to the original allotment to such other institutions

under this section for such fiscal year.

(f) Special merger rule

(1) The Secretary shall permit any eligible institution for a

grant under part B in any fiscal year prior to the fiscal year 1986

to apply for a grant under this part if the eligible institution

has merged with another institution of higher education which is

not so eligible or has merged with an eligible institution.

(2) The Secretary may establish such regulations as may be

necessary to carry out the requirement of paragraph (1) of this

subsection.

(g) Special rule for certain District of Columbia eligible

institutions

In any fiscal year that the Secretary determines that Howard

University or the University of the District of Columbia will

receive an allotment under subsections (b) and (c) of this section

which is not in excess of amounts received by Howard University

under section 123 of this title, relating to annual authorization

of appropriations for Howard University, or by the University of

the District of Columbia under the District of Columbia Home Rule

Act (87 Stat. 774) for such fiscal year, then Howard University and

the University of the District of Columbia, as the case may be,

shall be ineligible to receive an allotment under this section.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 324, as added Pub. L. 99-498,

title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1296; amended Pub.

L. 99-509, title VII, Sec. 7007, Oct. 21, 1986, 100 Stat. 1950;

Pub. L. 102-325, title III, Sec. 303(c), (d), July 23, 1992, 106

Stat. 475; Pub. L. 105-33, title XI, Sec. 11717(b), Aug. 5, 1997,

111 Stat. 786.)

-REFTEXT-

REFERENCES IN TEXT

Section 1069f(a)(2)(A) of this title, referred to in subsec.

(d)(2), was in the original a reference to section 360(a)(2)(A) of

Pub. L. 89-329. Section 360 of Pub. L. 89-329 was renumbered

section 399 of Pub. L. 89-329 by Pub. L. 105-244, title III, Sec.

301(a)(2), Oct. 7, 1998, 112 Stat. 1636, and was transferred to

section 1068h of this title.

The District of Columbia Home Rule Act, referred to in subsec.

(g), is Pub. L. 93-198, Dec. 24, 1973, 87 Stat. 774, as amended.

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

-MISC2-

PRIOR PROVISIONS

A prior section 1063, Pub. L. 89-329, title III, Sec. 324, as

added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat.

1395, related to Federal share of grants to institutions with

special needs, prior to the general revision of this subchapter by

Pub. L. 99-498.

Another prior section 1063, Pub. L. 89-329, title IV, Sec. 403,

Nov. 8, 1965, 79 Stat. 1233, related to duration of grant and

eligibility for payments, prior to the general revision of part A

of subchapter IV of this chapter by Pub. L. 92-318, title I, Sec.

131(b)(1), June 23, 1972, 86 Stat. 247.

AMENDMENTS

1997 - Subsec. (g). Pub. L. 105-33 substituted ''District of

Columbia Home Rule Act'' for ''District of Columbia Self-Government

and Governmental Reorganization Act''.

1992 - Subsec. (c). Pub. L. 102-325, Sec. 303(c), inserted '',

within 5 years of graduation with a baccalaureate degree,'' after

''in attendance at''.

Subsec. (d)(1). Pub. L. 102-325, Sec. 303(d), substituted

''$500,000'' for ''$350,000''.

1986 - Subsec. (c). Pub. L. 99-509, Sec. 7007(4), amended subsec.

generally, substituting ''percentage of graduates per institution''

for ''number of graduates'' and ''percentage of such graduates per

institution'' for ''number of such graduates''.

Subsec. (d). Pub. L. 99-509, Sec. 7007(1), (2), added subsec.

(d). Former subsec. (d) redesignated (e).

Subsec. (e). Pub. L. 99-509, Sec. 7007(1), (3), redesignated

former subsec. (d) as (e), and substituted ''subsection (a), (b),

(c), or (d) of this section'' for ''subsection (a), (b), or (c) of

this section''. Former subsec. (e) redesignated (f).

Subsecs. (f), (g). Pub. L. 99-509, Sec. 7007(1), redesignated

subsecs. (e) and (f) as (f) and (g), respectively.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-33 effective Oct. 1, 1997, except as

otherwise provided in title XI of Pub. L. 105-33, see section 11721

of Pub. L. 105-33, set out as a note under section 4246 of Title

18, Crimes and Criminal Procedure.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1062, 1063a, 1065 of this

title.

-CITE-

20 USC Sec. 1063a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part B - Strengthening Historically Black Colleges and Universities

-HEAD-

Sec. 1063a. Applications

-STATUTE-

(a) Contents

No part B institution shall be entitled to its allotment of

Federal funds for any grant under section 1063 of this title for

any period unless that institution meets the requirements of

subparagraphs (C), (D), and (E) (FOOTNOTE 1) of section 1058(b)(1)

of this title and submits an application to the Secretary at such

time, in such manner, and containing or accompanied by such

information, as the Secretary may reasonably require. Each such

application shall -

(FOOTNOTE 1) See References in Text note below.

(1) provide that the payments under this chapter will be used

for the purposes set forth in section 1062 of this title; and

(2) provide for making an annual report to the Secretary and

provide for -

(A) conducting, except as provided in subparagraph (B), a

financial and compliance audit of an eligible institution, with

regard to any funds obtained by it under this subchapter at

least once every 2 years 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

(B) with regard to an eligible institution which is audited

under chapter 75 of title 31 deeming such audit to satisfy the

requirements of subparagraph (A) for the period covered by such

audit.

(b) Approval

The Secretary shall approve any application which meets the

requirements of subsection (a) of this section and shall not

disapprove any application submitted under this part, or any

modification thereof, without first affording such institution

reasonable notice and opportunity for a hearing.

(c) Goals for financial management and academic programs

Any application for a grant under this part shall describe

measurable goals for the institution's financial management and

academic programs and include a plan of how the applicant intends

to achieve those goals.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 325, as added Pub. L. 99-498,

title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1296; amended Pub.

L. 100-50, Sec. 2(a)(8), June 3, 1987, 101 Stat. 335; Pub. L.

102-325, title III, Sec. 303(e), July 23, 1992, 106 Stat. 475.)

-REFTEXT-

REFERENCES IN TEXT

Section 1058(b)(1)(E) of this title, referred to in subsec. (a),

was repealed and section 1058(b)(1)(F) was redesignated section

1058(b)(1)(E) by Pub. L. 102-325, title III, Sec. 302(a)(1)(B),

(C), July 23, 1992, 106 Stat. 472.

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-

AMENDMENTS

1992 - Subsec. (c). Pub. L. 102-325 added subsec. (c).

1987 - Subsec. (a)(1). Pub. L. 100-50 substituted ''section 1062

of this title'' for ''section 1061 of this title''.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by 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.

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 1062 of this title.

-CITE-

20 USC Sec. 1063b 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part B - Strengthening Historically Black Colleges and Universities

-HEAD-

Sec. 1063b. Professional or graduate institutions

-STATUTE-

(a) General authorization

(1) Subject to the availability of funds appropriated to carry

out this section, the Secretary shall award program grants to each

of the postgraduate institutions listed in subsection (e) of this

section that is determined by the Secretary to be making a

substantial contribution to the legal, medical, dental, veterinary,

or other graduate education opportunities in mathematics,

engineering, or the physical or natural sciences for Black

Americans.

(2) No grant in excess of $1,000,000 may be made under this

section unless the postgraduate institution provides assurances

that 50 percent of the cost of the purposes for which the grant is

made will be paid from non-Federal sources, except that no

institution shall be required to match any portion of the first

$1,000,000 of the institution's award from the Secretary. After

funds are made available to each eligible institution under the

funding rules described in subsection (f) of this section, the

Secretary shall distribute, on a pro rata basis, any amounts which

were not so made available (by reason of the failure of an

institution to comply with the matching requirements of this

paragraph) among the institutions that have complied with such

matching requirement.

(b) Duration

Grants shall be made for a period not to exceed 5 years.

(c) Uses of funds

A grant under this section may be used for -

(1) purchase, rental or lease of scientific or laboratory

equipment for educational purposes, including instructional and

research purposes;

(2) construction, maintenance, renovation, and improvement in

classroom, library, laboratory, and other instructional

facilities, including purchase or rental of telecommunications

technology equipment or services;

(3) purchase of library books, periodicals, technical and other

scientific journals, microfilm, microfiche, and other educational

materials, including telecommunications program materials;

(4) scholarships, fellowships, and other financial assistance

for needy graduate and professional students to permit the

enrollment of the students in and completion of the doctoral

degree in medicine, dentistry, pharmacy, veterinary medicine,

law, and the doctorate degree in the physical or natural

sciences, engineering, mathematics, or other scientific

disciplines in which African Americans are underrepresented;

(5) establish or improve a development office to strengthen and

increase contributions from alumni and the private sector;

(6) assist in the establishment or maintenance of an

institutional endowment to facilitate financial independence

pursuant to section 1065 of this title; and

(7) funds and administrative management, and the acquisition of

equipment, including software, for use in strengthening funds

management and management information systems.

(d) Application

Any institution eligible for a grant under this section shall

submit an application which -

(1) demonstrates how the grant funds will be used to improve

graduate educational opportunities for Black and low-income

students, and lead to greater financial independence; and

(2) provides, in the case of applications for grants in excess

of $1,000,000, the assurances required by subsection (a)(2) of

this section and specifies the manner in which the eligible

institution is going to pay the non-Federal share of the cost of

the application.

(e) Eligibility

(1) In general

Independent professional or graduate institutions and programs

eligible for grants under subsection (a) of this section are the

following (FOOTNOTE 1)

(FOOTNOTE 1) So in original. Probably should be followed by a

colon.

(A) Morehouse School of Medicine;

(B) Meharry Medical School;

(C) Charles R. Drew Postgraduate Medical School;

(D) Clark-Atlanta University;

(E) Tuskegee University School of Veterinary Medicine and

other qualified graduate programs;

(F) Xavier University School of Pharmacy and other qualified

graduate programs;

(G) Southern University School of Law and other qualified

graduate programs;

(H) Texas Southern University School of Law and School of

Pharmacy and other qualified graduate programs;

(I) Florida A&M University School of Pharmaceutical Sciences

and other qualified graduate programs;

(J) North Carolina Central University School of Law and other

qualified graduate programs;

(K) Morgan State University qualified graduate program;

(L) Hampton University qualified graduate program;

(M) Alabama A&M qualified graduate program;

(N) North Carolina A&T State University qualified graduate

program;

(O) University of Maryland Eastern Shore qualified graduate

program;

(P) Jackson State University qualified graduate program;

(Q) Norfolk State University qualified graduate programs; and

(R) Tennessee State University qualified graduate programs.

(2) Qualified graduate program

(A) For the purposes of this section, the term ''qualified

graduate program'' means a graduate or professional program that

provides a program of instruction in the physical or natural

sciences, engineering, mathematics, or other scientific

discipline in which African Americans are underrepresented and

has students enrolled in such program at the time of application

for a grant under this section.

(B) Notwithstanding the enrollment requirement contained in

subparagraph (A), an institution may use an amount equal to not

more than 10 percent of the institution's grant under this

section for the development of a new qualified graduate program.

(3) Special rule

Institutions that were awarded grants under this section prior

to October 1, 1998, shall continue to receive such grants,

subject to the availability of appropriated funds, regardless of

the eligibility of the institutions described in subparagraphs

(Q) and (R) of paragraph (1).

(4) One grant per institution

The Secretary shall not award more than 1 grant under this

section in any fiscal year to any institution of higher education

or university system.

(5) Institutional choice

The president or chancellor of the institution may decide which

graduate or professional school or qualified graduate program

will receive funds under the grant in any 1 fiscal year, if the

allocation of funds among the schools or programs is delineated

in the application for funds submitted to the Secretary under

this section.

(f) Funding rule

Subject to subsection (g) of this section, of the amount

appropriated to carry out this section for any fiscal year -

(1) the first $26,600,000 (or any lesser amount appropriated)

shall be available only for the purposes of making grants to

institutions or programs described in subparagraphs (A) through

(P) of subsection (e)(1) of this section;

(2) any amount in excess of $26,600,000, but not in excess of

$28,600,000, shall be available for the purpose of making grants

to institutions or programs described in subparagraphs (Q) and

(R) of subsection (e)(1) of this section; and

(3) any amount in excess of $28,600,000, shall be made

available to each of the institutions or programs identified in

subparagraphs (A) through (R) (FOOTNOTE 2) pursuant to a formula

developed by the Secretary that uses the following elements:

(FOOTNOTE 2) So in original. Probably should be ''subparagraphs

(A) to (R) of subsection (e)(1) of this section''.

(A) The ability of the institution to match Federal funds

with non-Federal funds.

(B) The number of students enrolled in the programs for which

the eligible institution received funding under this section in

the previous year.

(C) The average cost of education per student, for all

full-time graduate or professional students (or the equivalent)

enrolled in the eligible professional or graduate school, or

for doctoral students enrolled in the qualified graduate

programs.

(D) The number of students in the previous year who received

their first professional or doctoral degree from the programs

for which the eligible institution received funding under this

section in the previous year.

(E) The contribution, on a percent basis, of the programs for

which the institution is eligible to receive funds under this

section to the total number of African Americans receiving

graduate or professional degrees in the professions or

disciplines related to the programs for the previous year.

(g) Hold harmless rule

Notwithstanding paragraphs (2) and (3) of subsection (f) of this

section, no institution or qualified program identified in

subsection (e)(1) of this section that received a grant for fiscal

year 1998 and that is eligible to receive a grant in a subsequent

fiscal year shall receive a grant amount in any such subsequent

fiscal year that is less than the grant amount received for fiscal

year 1998, unless the amount appropriated is not sufficient to

provide such grant amounts to all such institutions and programs,

or the institution cannot provide sufficient matching funds to meet

the requirements of this section.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 326, as added Pub. L. 99-498,

title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1297; amended Pub.

L. 100-50, Sec. 2(a)(9), (10), June 3, 1987, 101 Stat. 335; Pub. L.

102-325, title III, Sec. 303(f)(1), (g), July 23, 1992, 106 Stat.

475, 476; Pub. L. 103-208, Sec. 2(a)(9), Dec. 20, 1993, 107 Stat.

2457; Pub. L. 104-141, Sec. 2, May 6, 1996, 110 Stat. 1328; Pub. L.

105-244, title III, Sec. 304(b), Oct. 7, 1998, 112 Stat. 1643.)

-MISC1-

AMENDMENTS

1998 - Subsec. (a)(1). Pub. L. 105-244, Sec. 304(b)(1)(A)(i),

inserted ''in mathematics, engineering, or the physical or natural

sciences'' after ''graduate education opportunities''.

Subsec. (a)(2). Pub. L. 105-244, Sec. 304(b)(1)(A)(ii),

substituted ''$1,000,000 may'' for ''$500,000 may'' and '', except

that no institution shall be required to match any portion of the

first $1,000,000 of the institution's award from the Secretary.

After funds are made available to each eligible institution under

the funding rules described in subsection (f) of this section, the

Secretary shall distribute, on a pro rata basis, any amounts which

were not so made available (by reason of the failure of an

institution to comply with the matching requirements of this

paragraph) among the institutions that have complied with such

matching requirement.'' for ''except that the Morehouse School of

Medicine shall receive at least $3,000,000.''

Subsec. (c). Pub. L. 105-244, Sec. 304(b)(2), added pars. (1) to

(7) and struck out former pars. (1) to (3) which read as follows:

''(1) any of the purposes enumerated under section 1062 of this

title;

''(2) to establish or improve a development office to strengthen

and increase contributions from alumni and the private sector; and

''(3) to assist in the establishment or maintenance of an

institutional endowment to facilitate financial independence

pursuant to section 1065 of this title.''

Subsec. (d)(2). Pub. L. 105-244, Sec. 304(b)(1)(B), substituted

''$1,000,000'' for ''$500,000''.

Subsec. (e)(1). Pub. L. 105-244, Sec. 304(b)(3)(A)(i),

substituted ''are the following'' for ''include - '' in

introductory provisions.

Subsec. (e)(1)(E) to (J). Pub. L. 105-244, Sec. 304(b)(3)(A)(ii),

inserted ''and other qualified graduate programs'' before semicolon

at end.

Subsec. (e)(1)(P). Pub. L. 105-244, Sec. 304(b)(3)(A)(iv)(I),

inserted ''University'' after ''State''.

Subsec. (e)(1)(Q), (R). Pub. L. 105-244, Sec. 304(b)(3)(A)(iii),

(iv)(II), (III), added subpars. (Q) and (R).

Subsec. (e)(2). Pub. L. 105-244, Sec. 304(b)(3)(B), added par.

(2) and struck out heading and text of former par. (2). Text read

as follows: ''For the purposes of this section, the term 'qualified

graduate program' means a graduate or professional program that -

''(A) provides a program of instruction in the physical or

natural sciences, engineering, mathematics, or other scientific

discipline in which African Americans are underrepresented; and

''(B) has students enrolled in such program at the time of

application for a grant under this section.''

Subsec. (e)(3). Pub. L. 105-244, Sec. 304(b)(3)(B), added par.

(3) and struck out heading and text of former par. (3). Text read

as follows: ''Graduate institutions that were awarded grants under

this section prior to October 1, 1992 shall continue to receive

such grant payments, regardless of the eligibility of the graduate

institutions described in subparagraphs (F) through (P), until such

grant period has expired or September 30, 1993, whichever is

later.''

Subsec. (e)(5). Pub. L. 105-244, Sec. 304(b)(3)(C), added par.

(5).

Subsec. (f). Pub. L. 105-244, Sec. 304(b)(4)(A), substituted

''Subject to subsection (g), of the amount appropriated'' for ''Of

the amount appropriated'' in introductory provisions.

Subsec. (f)(1). Pub. L. 105-244, Sec. 304(b)(4)(B), substituted

''$26,600,000'' for ''$12,000,000'' and ''(A) through (P)'' for

''(A) through (E)''.

Subsec. (f)(2), (3). Pub. L. 105-244, Sec. 304(b)(4)(C), added

pars. (2) and (3) and struck out former par. (2) which read as

follows: ''any amount appropriated in excess of $12,000,000 shall

be available -

''(A) for the purposes of making grants, in equal amounts not

to exceed $500,000, to institutions or programs described in

subparagraphs (F) through (P) of subsection (e)(1) of this

section; and

''(B) secondly for the purposes of making grants to

institutions or programs described in subparagraphs (A) through

(P) of subsection (e)(1) of this section.''

Subsec. (g). Pub. L. 105-244, Sec. 304(b)(5), added subsec. (g).

1996 - Subsec. (b). Pub. L. 104-141 struck out at end ''No more

than two 5-year grants (for a period of not more than 10 years) may

be made to any one undergraduate or postgraduate institution.''

1993 - Subsec. (e)(2). Pub. L. 103-208 redesignated subpar. (C)

as (B) and struck out former subpar. (B) which read as follows:

''has been accredited by a nationally recognized accrediting agency

or association or has been approved by a nationally recognized

approving agency; and''.

1992 - Subsec. (e). Pub. L. 102-325, Sec. 303(f)(1), substituted

''Eligibility'' for ''Eligible professional or graduate

institutions'' in heading and amended text generally. Prior to

amendment, text read as follows: ''Independent professional or

graduate institutions eligible for grants under subsection (a) of

this section include -

''(1) Morehouse School of Medicine;

''(2) Meharry Medical School;

''(3) Charles R. Drew Postgraduate Medical School;

''(4) Atlanta University; and

''(5) Tuskegee Institute School of Veterinary Medicine.''

Subsec. (f). Pub. L. 102-325, Sec. 303(g), added subsec. (f).

1987 - Subsec. (a)(2). Pub. L. 100-50, Sec. 2(a)(9), inserted

''except that the Morehouse School of Medicine shall receive at

least $3,000,000''.

Subsec. (c)(3). Pub. L. 100-50, Sec. 2(a)(10), made technical

amendment to reference to section 1065 of this title to correct

reference to corresponding section of original act.

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 1992 AMENDMENT

Amendment by 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.

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.

CONGRESSIONAL FINDINGS

Section 1 of Pub. L. 104-141 provided that: ''The Congress finds

the following:

''(1) The Historically Black Graduate Professional Schools

identified under section 326 of the Higher Education Act (20

U.S.C. 1063b) may receive grant funds if the Secretary of

Education determines that such institutions make a substantial

contribution to the legal, medical, dental, veterinary, or other

graduate opportunity for African Americans.

''(2) The health professions schools which participate under

section 326 train 50 percent of the Nation's African American

physicians, 50 percent of the Nation's African American dentists,

50 percent of the Nation's African American pharmacists, and 75

percent of the Nation's African American veterinarians.

''(3) A majority of the graduates of these schools practice in

poor urban and rural areas of the country providing care to many

disadvantaged Americans.

''(4) The survival of these schools will contribute to the

improved health status of disadvantaged persons, and of all

Americans.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1068h of this title; title

42 section 5197h.

-CITE-

20 USC Sec. 1063c 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part B - Strengthening Historically Black Colleges and Universities

-HEAD-

Sec. 1063c. Reporting and audit requirements

-STATUTE-

(a) Recordkeeping

Each recipient of a grant under this part shall keep such records

as the Secretary shall prescribe, including records which fully

disclose -

(1) the amount and disposition by such recipient of the

proceeds of such assistance;

(2) the cost of the project or undertaking in connection with

which such assistance is given or used;

(3) the amount of that portion of the cost of the project or

undertaking supplied by other sources; and

(4) such other records as will facilitate an effective audit.

(b) Repayment of unexpended funds

Any funds paid to an institution and not expended or used for the

purposes for which the funds were paid within 10 years following

the date of the initial grant awarded to an institution under part

B of this subchapter shall be repaid to the Treasury of the United

States.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 327, as added Pub. L. 99-498,

title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1298; amended Pub.

L. 100-50, Sec. 2(a)(11), June 3, 1987, 101 Stat. 335.)

-MISC1-

AMENDMENTS

1987 - Subsec. (a). Pub. L. 100-50 substituted ''part'' for

''chapter'' in introductory text.

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 Part C - Endowment Challenge Grants for

Institutions Eligible for Assistance Under

Part A or Part B 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part C - Endowment Challenge Grants for Institutions Eligible for

Assistance Under Part A or Part B

.

-HEAD-

Part C - Endowment Challenge Grants for Institutions Eligible for

Assistance Under Part A or Part B

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 1057, 1059c, 1062, 1068,

1068h, 1101b of this title.

-CITE-

20 USC Sec. 1064 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part C - Endowment Challenge Grants for Institutions Eligible for

Assistance Under Part A or Part B

-HEAD-

Sec. 1064. Repealed. Pub. L. 102-325, title III, Sec. 304(a)(2),

July 23, 1992, 106 Stat. 476

-MISC1-

Section, Pub. L. 89-329, title III, Sec. 331, as added Pub. L.

99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1298,

related to establishment of challenge grant program.

A prior section 1064, Pub. L. 89-329, title III, Sec. 331, as

added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat.

1395; amended Pub. L. 97-35, title V, Sec. 516(c)(2), Aug. 13,

1981, 95 Stat. 447, established a challenge grant program, prior to

the general revision of this subchapter by Pub. L. 99-498.

Another prior section 1064, Pub. L. 89-329, title IV, Sec. 404,

Nov. 8, 1965, 79 Stat. 1233, related to time and manner of making

application for grant, selection of recipients and conditions

precedent to award, prior to the general revision of part A of

subchapter IV of this chapter by Pub. L. 92-318, title I, Sec.

131(b)(1), June 23, 1972, 86 Stat. 247.

EFFECTIVE DATE OF REPEAL

Repeal effective Oct. 1, 1992, see section 2 of Pub. L. 102-325,

set out as an Effective Date of 1992 Amendment note under section

1001 of this title.

-CITE-

20 USC Sec. 1065 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part C - Endowment Challenge Grants for Institutions Eligible for

Assistance Under Part A or Part B

-HEAD-

Sec. 1065. Endowment challenge grants

-STATUTE-

(a) Purpose; definitions

(1) The purpose of this section is to establish a program to

provide matching grants to eligible institutions in order to

establish or increase endowment funds at such institutions, to

provide additional incentives to promote fund raising activities by

such institutions, and to foster increased independence and

self-sufficiency at such institutions.

(2) For the purpose of this section:

(A) The term ''endowment fund'' means a fund established by

State law, by an institution of higher education, or by a

foundation which is exempt from taxation and is maintained for

the purpose of generating income for the support of the

institution, but which shall not include real estate.

(B) The term ''endowment fund corpus'' means an amount equal to

the grant or grants awarded under this section plus an amount

equal to such grant or grants provided by the institution.

(C) The term ''endowment fund income'' means an amount equal to

the total value of the endowment fund established under this

section minus the endowment fund corpus.

(D)(i) The term ''eligible institution'' means an institution

that is an -

(I) eligible institution under part A of this subchapter or

would be considered to be such an institution if section

1058(b)(1)(C) of this title referred to a postgraduate degree

rather than a bachelor's degree;

(II) institution eligible for assistance under part B of this

subchapter or would be considered to be such an institution if

section 1063 of this title referred to a postgraduate degree

rather than a baccalaureate degree; or

(III) institution of higher education that makes a

substantial contribution to postgraduate medical educational

opportunities for minorities and the economically

disadvantaged.

(ii) The Secretary may waive the requirements of subclauses (I)

and (II) of clause (i) with respect to a postgraduate degree in

the case of any institution otherwise eligible under clause (i)

for an endowment challenge grant upon determining that the

institution makes a substantial contribution to medical education

opportunities for minorities and the economically disadvantaged.

(b) Grants authorized

(1) From sums available for this section under section 1068h of

this title, the Secretary is authorized to award endowment

challenge grants to eligible institutions to establish or increase

an endowment fund at such institution. Such grants shall be made

only to eligible institutions described in paragraph (4) whose

applications have been approved pursuant to subsection (g) of this

section.

(2)(A) Except as provided in subparagraph (B), no institution

shall receive a grant under this section, unless such institution

has deposited in its endowment fund established under this section

an amount equal to the amount of such grant. The source of funds

for this institutional match shall not include Federal funds or

funds from an existing endowment fund.

(B) The Secretary may make a grant under this part to an eligible

institution in any fiscal year if the institution -

(i) applies for a grant in an amount not exceeding $500,000;

and

(ii) has deposited in the eligible institution's endowment fund

established under this section an amount which is equal to 1/2 of

the amount of such grant.

(C) An eligible institution of higher education that is awarded a

grant under subparagraph (B) shall not be eligible to receive an

additional grant under subparagraph (B) until 10 years after the

date on which the grant period terminates.

(3) The period of a grant under this section shall be not more

than 20 years. During the grant period, an institution may not

withdraw or expend any of the endowment fund corpus. After the

termination of the grant period, an institution may use the

endowment fund corpus plus any endowment fund income for any

educational purpose.

(4)(A) An institution of higher education is eligible to receive

a grant under this section if it is an eligible institution as

described in subsection (a)(2)(D) of this section.

(B) No institution shall be ineligible for an endowment challenge

grant under this section for a fiscal year by reason of the

previous receipt of such a grant but no institution shall be

eligible to receive such a grant for more than 2 fiscal years out

of any period of 5 consecutive fiscal years.

(5) An endowment challenge grant awarded under this section to an

eligible institution shall be in an amount which is not less than

$50,000 in any fiscal year.

(6)(A) An eligible institution may designate a foundation, which

was established for the purpose of raising money for the

institution, as the recipient of the grant awarded under this

section.

(B) The Secretary shall not award a grant to a foundation on

behalf of an institution unless -

(i) the institution assures the Secretary that the foundation

is legally authorized to receive the endowment fund corpus and is

legally authorized to administer the fund in accordance with this

section and any implementing regulation;

(ii) the foundation agrees to administer the fund in accordance

with the requirements of this section and any implementing

regulation; and

(iii) the institution agrees to be liable for any violation by

the foundation of the provisions of this section and any

implementing regulation, including any monetary liability that

may arise as a result of such violation.

(c) Grant agreement; endowment fund provisions

(1) An institution awarded a grant under this section shall enter

into an agreement with the Secretary containing satisfactory

assurances that it will (A) immediately comply with the matching

requirements of subsection (b)(2) of this section, (B) establish an

endowment fund independent of any other such fund of the

institution, (C) invest the endowment fund corpus, and (D) meet the

other requirements of this section.

(2)(A) An institution shall invest the endowment fund corpus and

endowment fund income in low-risk securities in which a regulated

insurance company may invest under the law of the State in which

the institution is located such as a federally insured bank savings

account or comparable interest-bearing account, certificate of

deposit, money market fund, mutual fund, or obligations of the

United States.

(B) The institution, in investing the endowment fund established

under this section, shall exercise the judgment and care, under the

circumstances then prevailing, which a person of prudence,

discretion, and intelligence would exercise in the management of

such person's own affairs.

(3)(A) An institution may withdraw and expend the endowment fund

income to defray any expenses necessary to the operation of such

college, including expenses of operations and maintenance,

administration, academic and support personnel, construction and

renovation, community and student services programs, and technical

assistance.

(B)(i) Except as provided in clause (ii), an institution may not

spend more than 50 percent of the total aggregate endowment fund

income earned prior to the time of expenditure.

(ii) The Secretary may permit an institution to spend more than

50 percent of the endowment fund income notwithstanding clause (i)

if the institution demonstrates such an expenditure is necessary

because of (I) a financial emergency, such as a pending insolvency

or temporary liquidity problem; (II) a life-threatening situation

occasioned by a natural disaster or arson; or (III) any other

unusual occurrence or exigent circumstance.

(d) Repayment provisions

(1) If at any time an institution withdraws part of the endowment

fund corpus, the institution shall repay to the Secretary an amount

equal to 50 percent of the withdrawn amount, which represents the

Federal share, plus income earned thereon. The Secretary may use

such repaid funds to make additional challenge grants, or to

increase existing endowment grants, to other eligible institutions.

(2) If an institution expends more of the endowment fund income

than is permitted under subsection (c) of this section, the

institution shall repay the Secretary an amount equal to 50 percent

of the amount improperly expended (representing the Federal share

thereof). The Secretary may use such repaid fund to make

additional challenge grants, or to increase existing challenge

grants, to other eligible institutions.

(e) Audit information

An institution receiving a grant under this section shall provide

to the Secretary (or a designee thereof) such information (or

access thereto) as may be necessary to audit or examine

expenditures made from the endowment fund corpus or income in order

to determine compliance with this section.

(f) Selection criteria

In selecting eligible institutions for grants under this section

for any fiscal year, the Secretary shall -

(1) give priority to an applicant that is receiving assistance

under part A of this subchapter or part B of this subchapter or

has received a grant under part A of this subchapter or part B of

this subchapter within the 5 fiscal years preceding the fiscal

year in which the applicant is applying for a grant under this

section;

(2) give priority to an applicant with a greater need for such

a grant, based on the current market value of the applicant's

existing endowment in relation to the number of full-time

equivalent students enrolled at such institution; and

(3) consider -

(A) the effort made by the applicant to build or maintain its

existing endowment fund; and

(B) the degree to which an applicant proposes to match the

grant with nongovernmental funds.

(g) Application

Any institution which is eligible for assistance under this

section may submit to the Secretary a grant application at such

time, in such form, and containing such information as the

Secretary may prescribe, including a description of the long- and

short-term plans for raising and using the funds under this part.

Subject to the availability of appropriations to carry out this

section and consistent with the requirement of subsection (f) of

this section, the Secretary may approve an application for a grant

if an institution, in its application, provides adequate assurances

that it will comply with the requirements of this section.

(h) Termination and recovery provisions

(1) After notice and an opportunity for a hearing, the Secretary

may terminate and recover a grant awarded under this section if the

grantee institution -

(A) expends portions of the endowment fund corpus or expends

more than the permissible amount of the endowment funds income as

prescribed in subsection (c)(3) of this section;

(B) fails to invest the endowment fund in accordance with the

investment standards set forth in subsection (c)(2) of this

section; or

(C) fails to properly account to the Secretary concerning the

investment and expenditures of the endowment funds.

(2) If the Secretary terminates a grant under paragraph (1), the

grantee shall return to the Secretary an amount equal to the sum of

each original grant under this section plus income earned thereon.

The Secretary may use such repaid funds to make additional

endowment grants, or to increase existing challenge grants, to

other eligible institutions under this part.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 331, formerly Sec. 332, as added

Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat.

1299; amended Pub. L. 100-50, Sec. 2(a)(12), June 3, 1987, 101

Stat. 336; renumbered Sec. 331 and amended Pub. L. 102-325, title

III, Sec. 304(a)(3), (b), July 23, 1992, 106 Stat. 476; Pub. L.

103-208, Sec. 2(a)(8), (10), (11), Dec. 20, 1993, 107 Stat. 2457,

2458; Pub. L. 105-244, title III, Sec. 305, Oct. 7, 1998, 112 Stat.

1646.)

-MISC1-

PRIOR PROVISIONS

A prior section 331 of Pub. L. 89-329, title III, as added Pub.

L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1298,

related to establishment of challenge grant program, was classified

to section 1064 of this title prior to repeal by Pub. L. 102-325,

Sec. 304(a)(2).

A prior section 1065, Pub. L. 89-329, title III, Sec. 332, as

added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat.

1396, related to applications for challenge grants, prior to the

general revision of this subchapter by Pub. L. 99-498.

Another prior section 1065, Pub. L. 89-329, title IV, Sec. 405,

Nov. 8, 1965, 79 Stat. 1234; Pub. L. 90-575, title I, Sec.

101(b)(2), Oct. 16, 1968, 82 Stat. 1017, related to allotment and

reallotment of funds among the States, prior to the general

revision of part A of subchapter IV of this chapter by Pub. L.

92-318, title I, Sec. 131(b)(1), June 23, 1972, 86 Stat. 247.

A prior section 1065a, Pub. L. 89-329, title III, Sec. 333, as

added Pub. L. 98-95, Sec. 2, Sept. 26, 1983, 97 Stat. 708,

established program of matching grants to increase endowments at

eligible institutions of higher education, prior to the general

revision of this subchapter by Pub. L. 99-498.

AMENDMENTS

1998 - Subsec. (b)(1). Pub. L. 105-244, Sec. 305(1), substituted

''section 1068h'' for ''section 1069f''.

Subsec. (b)(2)(B), (C). Pub. L. 105-244, Sec. 305(2), added

subpars. (B) and (C) and struck out former subpars. (B) and (C)

which authorized Secretary to make grants under this part to

eligible institutions in amounts which varied depending on amount

appropriated in each fiscal year to carry out this part and limited

rights of institutions to reapply for grants when amount

appropriated was below specified amounts.

1993 - Subsecs. (a)(2)(D), (b)(2)(B), (C), (5). Pub. L. 103-208

realigned margins and in subsec. (b)(5) substituted ''An

endowment'' for ''an endowment''.

1992 - Subsec. (a)(1). Pub. L. 102-325, Sec. 304(b)(1)(A), struck

out ''of higher education'' after ''eligible institutions''.

Subsec. (a)(2)(D). Pub. L. 102-325, Sec. 304(b)(1)(B), added

subpar. (D).

Subsec. (b)(1). Pub. L. 102-325, Sec. 304(b)(2), inserted

''endowment'' before ''challenge grants'' and struck out ''of

higher education'' after ''eligible institutions''.

Subsec. (b)(2)(B), (C). Pub. L. 102-325, Sec. 304(b)(3), amended

subpars. (B) and (C) generally. Prior to amendment, subpars. (B)

and (C) read as follows:

''(B) In any fiscal year in which the appropriations for this

part exceeds $10,000,000, the Secretary may make a grant under this

part to an eligible institution of higher education if such

institution -

''(i) has deposited in its endowment fund established under

this section an amount which is equal to one-half of the amount

of such grant; and

''(ii) applies for a grant in an amount exceeding $1,000,000.

''(C) An eligible institution of higher education that is awarded

a grant under this section shall not be eligible to reapply for a

grant under this section during the 10 years immediately following

the period that it received such grant.''

Subsec. (b)(4)(A). Pub. L. 102-325, Sec. 304(b)(4), substituted

''subsection (a)(2)(D) of this section'' for ''section 1064(a)(1)

of this title''.

Subsec. (b)(4)(B). Pub. L. 102-325, Sec. 304(b)(5), substituted

''an endowment challenge grant'' for ''a challenge grant''.

Subsec. (b)(5). Pub. L. 102-325, Sec. 304(b)(6), amended par. (5)

generally. Prior to amendment, par. (5) read as follows: ''Except

as provided in paragraph (2)(B), a challenge grant under this

section to an eligible institution year shall -

''(A) not be less than $50,000 for any fiscal year; and

''(B) not be more than (i) $250,000 for fiscal year 1987; or

(ii) $500,000 for fiscal year 1988 or any succeeding fiscal

year.''

Subsec. (f)(1). Pub. L. 102-325, Sec. 304(b)(7), amended par. (1)

generally. Prior to amendment, par. (1) read as follows: ''give

priority to an applicant which is a recipient of a grant made under

part A or B of this subchapter (or section 1069a of this title)

during the academic year in which the applicant is applying for a

grant under this section;''.

Subsec. (g). Pub. L. 102-325, Sec. 304(b)(8), inserted '',

including a description of the long- and short-term plans for

raising and using the funds under this part'' before period at end

of first sentence.

1987 - Subsec. (f)(1). Pub. L. 100-50 inserted ''(or section

1069a of this title)''.

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 1992 AMENDMENT

Amendment by 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.

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 1057, 1063b, 4425 of this

title; title 25 section 1832.

-CITE-

20 USC Part D - Historically Black College and University

Capital Financing 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part D - Historically Black College and University Capital

Financing

.

-HEAD-

Part D - Historically Black College and University Capital

Financing

-COD-

CODIFICATION

Pub. L. 105-244, title III, Sec. 301(a)(3), Oct. 7, 1998, 112

Stat. 1636, redesignated part B of subchapter VII of this chapter

as part D of subchapter III of this chapter.

-MISC3-

PRIOR PROVISIONS

A prior part D, consisting of sections 1066 to 1069, 1069b to

1069d, and 1069f, was redesignated part F (Sec. 1068 et seq.) of

this subchapter by Pub. L. 105-244, title III, Sec. 301(a)(1), Oct.

7, 1998, 112 Stat. 1636.

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 1068, 1068b, 1068d, 1068h,

1070a of this title.

-CITE-

20 USC Sec. 1066 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part D - Historically Black College and University Capital

Financing

-HEAD-

Sec. 1066. Findings

-STATUTE-

The Congress finds that -

(1) a significant part of the Federal mission in education has

been to attain equal opportunity in higher education for

low-income, educationally disadvantaged Americans and African

Americans;

(2) the Nation's historically Black colleges and universities

have played a prominent role in American history and have an

unparalleled record of fostering the development of African

American youth by recognizing their potential, enhancing their

academic and technical skills, and honing their social and

political skills through higher education;

(3) the academic and residential facilities on the campuses of

all historically Black colleges and universities have suffered

from neglect, deferred maintenance and are in need of capital

improvements in order to provide appropriate settings for

learning and social development through higher education;

(4) due to their small enrollments, limited endowments and

other financial factors normally considered by lenders in

construction financing, historically Black colleges and

universities often lack access to the sources of funding

necessary to undertake the necessary capital improvements through

borrowing and bond financing;

(5) despite their track record of long-standing and remarkable

institutional longevity and viability, historically Black

colleges and universities often lack the financial resources

necessary to gain access to traditional sources of capital

financing such as bank loans and bond financing; and

(6) Federal assistance to facilitate low-cost capital basis for

historically Black colleges and universities will enable such

colleges and universities to continue and expand their

educational mission and enhance their significant role in

American higher education.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 341, formerly title VII, Sec. 721,

as added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106

Stat. 741; renumbered title III, Sec. 341, Pub. L. 105-244, title

III, Sec. 301(a)(3), (4), Oct. 7, 1998, 112 Stat. 1636.)

-COD-

CODIFICATION

Section was formerly classified to section 1132c of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

PRIOR PROVISIONS

A prior section 1066, Pub. L. 89-329, title III, Sec. 351, as

added Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100

Stat. 1302, and amended, which related to applications for

assistance under this subchapter, was renumbered section 391 of

Pub. L. 89-329 by Pub. L. 105-244, title III, Sec. 301(a)(2), Oct.

7, 1998, 112 Stat. 1636, and transferred to section 1068 of this

title.

Another prior section 1066, Pub. L. 89-329, title III, Sec. 341,

as added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94

Stat. 1396, related to applications for assistance, prior to the

general amendment of this subchapter by Pub. L. 99-498.

Another prior section 1066, Pub. L. 89-329, title IV, Sec. 406,

Nov. 8, 1965, 79 Stat. 1234; Pub. L. 90-575, title I, Sec.

101(b)(2), Oct. 16, 1968, 82 Stat. 1017, related to allocation of

allotted funds to institutions, filing dates for application,

criteria for making allocations, additional allocations and

payments, prior to the general amendment of part A of subchapter IV

of this chapter by Pub. L. 92-318, title I, Sec. 131(b)(1), June

23, 1972, 86 Stat. 247.

EFFECTIVE DATE

Part effective Oct. 1, 1992, see section 2 of Pub. L. 102-325,

set out as an Effective Date of 1992 Amendment note under section

1001 of this title.

-CITE-

20 USC Sec. 1066a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part D - Historically Black College and University Capital

Financing

-HEAD-

Sec. 1066a. Definitions

-STATUTE-

For the purposes of this part:

(1) The term ''eligible institution'' means a ''part B

institution'' as that term is defined in section 1061(2) of this

title.

(2) The term ''loan'' means a loan made to an eligible

institution under the provisions of this part and pursuant to an

agreement with the Secretary.

(3) The term ''qualified bond'' means any obligation issued by

the designated bonding authority at the direction of the

Secretary, the net proceeds of which are loaned to an eligible

institution for the purposes described in section 1066b(b) of

this title.

(4) The term ''funding'' means any payment under this part from

the Secretary to the eligible institution or its assignee in

fulfillment of the insurance obligations of the Secretary

pursuant to an agreement under section 1066b of this title.

(5) The term ''capital project'' means, subject to section

1066c(b) of this title the repair, renovation, or, in exceptional

circumstances, the construction or acquisition, of -

(A) any classroom facility, library, laboratory facility,

dormitory (including dining facilities) or other facility

customarily used by colleges and universities for instructional

or research purposes or for housing students, faculty, and

staff;

(B) a facility for the administration of an educational

program, or a student center or student union, except that not

more than 5 percent of the loan proceeds provided under this

part may be used for the facility, center or union if the

facility, center or union is owned, leased, managed, or

operated by a private business, that, in return for such use,

makes a payment to the eligible institution;

(C) instructional equipment technology,, (FOOTNOTE 1)

research instrumentation, and any capital equipment or fixture

related to facilities described in subparagraph (A);

(FOOTNOTE 1) So in original.

(D) a maintenance, storage, or utility facility that is

essential to the operation of a facility, a library, a

dormitory, equipment, instrumentation, a fixture, real property

or an interest therein, described in this paragraph;

(E) a facility designed to provide primarily outpatient

health care for students or faculty;

(F) physical infrastructure essential to support the projects

authorized under this paragraph, including roads, sewer and

drainage systems, and water, power, lighting,

telecommunications, and other utilities;

(G) any other facility, equipment or fixture which is

essential to the maintaining of accreditation of the member

institution by a nationally recognized accrediting agency or

association; and

(H) any real property or interest therein underlying

facilities described in subparagraph (A) or (G).

(6) The term ''interest'' includes accredited value or any

other payment constituting interest on an obligation.

(7) The term ''outstanding'', when used with respect to bonds,

shall not include bonds the payment of which shall have been

provided for by the irrevocable deposit in trust of obligations

maturing as to principal and interest in such amounts and at such

times as will ensure the availability of sufficient moneys to

make payments on such bonds.

(8) The term ''designated bonding authority'' means the

private, for-profit corporation selected by the Secretary

pursuant to section 1066d(1) of this title for the purpose of

issuing taxable construction bonds in furtherance of the purposes

of this part.

(9) The term ''Advisory Board'' means the Advisory Board

established by section 1066f of this title.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 342, formerly title VII, Sec. 722,

as added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106

Stat. 742; renumbered title III, Sec. 342, and amended Pub. L.

105-244, title III, Sec. 301(a)(3), (4), (c)(4), 306(a), Oct. 7,

1998, 112 Stat. 1636, 1637, 1646.)

-COD-

CODIFICATION

Section was formerly classified to section 1132c-1 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

PRIOR PROVISIONS

A prior section 342 of Pub. L. 89-329 was classified to section

1067 of this title prior to the general amendment of this

subchapter by Pub. L. 99-498.

AMENDMENTS

1998 - Par. (3). Pub. L. 105-244, Sec. 301(c)(4)(A), substituted

''section 1066b(b)'' for ''section 1132c-2(b)''.

Par. (4). Pub. L. 105-244, Sec. 301(c)(4)(B), substituted

''section 1066b'' for ''section 1132c-2''.

Par. (5). Pub. L. 105-244, Sec. 301(c)(4)(C), substituted

''section 1066c(b)'' for ''section 1132c-3(b)'' in introductory

provisions.

Par. (5)(B). Pub. L. 105-244, Sec. 306(a)(2), added subpar. (B).

Former subpar. (B) redesignated (C).

Par. (5)(C). Pub. L. 105-244, Sec. 306(a)(1), (3), redesignated

subpar. (B) as (C) and inserted ''technology,'' after

''instructional equipment''. Former subpar. (C) redesignated (G).

Par. (5)(D) to (F). Pub. L. 105-244, Sec. 306(a)(4), added

subpars. (D) to (F). Former subpar. (D) redesignated (H).

Par. (5)(G). Pub. L. 105-244, Sec. 306(a)(1), redesignated

subpar. (C) as (G).

Par. (5)(H). Pub. L. 105-244, Sec. 306(a)(1), (5), redesignated

subpar. (D) as (H) and substituted ''(G)'' for ''(C)''.

Par. (8). Pub. L. 105-244, Sec. 301(c)(4)(D), substituted

''section 1066d(1)'' for ''section 1132c-4(1)''.

Par. (9). Pub. L. 105-244, Sec. 301(c)(4)(E), substituted

''section 1066f'' for ''section 1132c-6''.

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. 1066b 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part D - Historically Black College and University Capital

Financing

-HEAD-

Sec. 1066b. Federal insurance for bonds

-STATUTE-

(a) General rule

Subject to the limitations in section 1066c of this title, the

Secretary is authorized to enter into insurance agreements to

provide financial insurance to guarantee the full payment of

principal and interest on qualified bonds upon the conditions set

forth in subsections (b), (c) and (d) of this section.

(b) Responsibilities of designated bonding authority

The Secretary may not enter into an insurance agreement described

in subsection (a) of this section unless the Secretary designates a

qualified bonding authority in accordance with sections 1066d(1)

and 1066e (FOOTNOTE 1) of this title and the designated bonding

authority agrees in such agreement to -

(FOOTNOTE 1) See References in Text note below.

(1) use the proceeds of the qualified bonds, less costs of

issuance not to exceed 2 percent of the principal amount thereof,

to make loans to eligible institutions or for deposit into an

escrow account for repayment of the bonds;

(2) provide in each loan agreement with respect to a loan that

not less than 95 percent of the proceeds of the loan will be used

-

(A) to finance the repair, renovation, and, in exceptional

cases, construction or acquisition, of a capital project; or

(B) to refinance an obligation the proceeds of which were

used to finance the repair, renovation, and, in exceptional

cases, construction or acquisition, of a capital project;

(3)(A) charge such interest on loans, and provide for such a

schedule of repayments of loans, as will, upon the timely

repayment of the loans, provide adequate and timely funds for the

payment of principal and interest on the bonds; and

(B) require that any payment on a loan expected to be necessary

to make a payment of principal and interest on the bonds be due

not less than 60 days prior to the date of the payment on the

bonds for which such loan payment is expected to be needed;

(4) prior to the making of any loan, provide for a credit

review of the institution receiving the loan and assure the

Secretary that, on the basis of such credit review, it is

reasonable to anticipate that the institution receiving the loan

will be able to repay the loan in a timely manner pursuant to the

terms thereof;

(5) provide in each loan agreement with respect to a loan that,

if a delinquency on such loan results in a funding under the

insurance agreement, the institution obligated on such loan shall

repay the Secretary, upon terms to be determined by the

Secretary, for such funding;

(6) assign any loans to the Secretary, upon the demand of the

Secretary, if a delinquency on such loan has required a funding

under the insurance agreement;

(7) in the event of a delinquency on a loan, engage in such

collection efforts as the Secretary shall require for a period of

not less than 45 days prior to requesting a funding under the

insurance agreement;

(8) establish an escrow account -

(A) into which each eligible institution shall deposit 5

percent of the proceeds of any loan made under this part, with

each eligible institution required to maintain in the escrow

account an amount equal to 5 percent of the outstanding

principal of all loans made to such institution under this

part; and

(B) the balance of which -

(i) shall be available to the Secretary to pay principal

and interest on the bonds in the event of delinquency in loan

repayment; and

(ii) shall be used to return to an eligible institution an

amount equal to any remaining portion of such institution's 5

percent deposit of loan proceeds following scheduled

repayment of such institution's loan;

(9) provide in each loan agreement with respect to a loan that,

if a delinquency on such loan results in amounts being withdrawn

from the escrow account to pay principal and interest on bonds,

subsequent payments on such loan shall be available to replenish

such escrow account;

(10) comply with the limitations set forth in section 1066c of

this title; and

(11) make loans only to eligible institutions under this part

in accordance with conditions prescribed by the Secretary to

ensure that loans are fairly allocated among as many eligible

institutions as possible, consistent with making loans of amounts

that will permit capital projects of sufficient size and scope to

significantly contribute to the educational program of the

eligible institutions.

(c) Additional agreement provisions

Any insurance agreement described in subsection (a) of this

section shall provide as follows:

(1) The payment of principal and interest on bonds shall be

insured by the Secretary until such time as such bonds have been

retired or canceled.

(2) The Federal liability for delinquencies and default for

bonds guaranteed under this part shall only become effective upon

the exhaustion of all the funds held in the escrow account

described in subsection (b)(8) of this section.

(3) The Secretary shall create a letter of credit authorizing

the Department of the Treasury to disburse funds to the

designated bonding authority or its assignee.

(4) The letter of credit shall be drawn upon in the amount

determined by paragraph (5) of this subsection upon the

certification of the designated bonding authority to the

Secretary or the Secretary's designee that there is a delinquency

on 1 or more loans and there are insufficient funds available

from loan repayments and the escrow account to make a scheduled

payment of principal and interest on the bonds.

(5) Upon receipt by the Secretary or the Secretary's designee

of the certification described in paragraph (4) of this

subsection, the designated bonding authority may draw a funding

under the letter of credit in an amount equal to -

(A) the amount required to make the next scheduled payment of

principal and interest on the bonds, less

(B) the amount available to the designated bonding authority

from loan repayments and the escrow account.

(6) All funds provided under the letter of credit shall be paid

to the designated bonding authority within 2 business days

following receipt of the certification described in paragraph

(4).

(d) Full faith and credit provisions

Subject to subsection (c)(1) of this section the full faith and

credit of the United States is pledged to the payment of all funds

which may be required to be paid under the provisions of this

section.

(e) Sale of bonds

Notwithstanding any other provision of law, a qualified bond

guaranteed under this part may be sold to any party that offers

terms that the Secretary determines are in the best interest of the

eligible institution.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 343, formerly title VII, Sec. 723,

as added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106

Stat. 743; amended Pub. L. 103-382, title III, Sec. 360C, Oct. 20,

1994, 108 Stat. 3972; renumbered title III, Sec. 343, and amended

Pub. L. 105-244, title III, Sec. 301(a)(3), (4), (c)(5), 306(b),

Oct. 7, 1998, 112 Stat. 1636, 1637, 1646.)

-REFTEXT-

REFERENCES IN TEXT

Section 1066e of this title, referred to in subsec. (b), was

repealed by Pub. L. 105-244, title III, Sec. 306(d), Oct. 7, 1998,

112 Stat. 1647.

-COD-

CODIFICATION

Section was formerly classified to section 1132c-2 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

PRIOR PROVISIONS

A prior section 343 of Pub. L. 89-329 was classified to section

1068 of this title prior to the general amendment of this

subchapter by Pub. L. 99-498.

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-244, Sec. 301(c)(5)(A),

substituted ''section 1066c'' for ''section 1132c-3''.

Subsec. (b). Pub. L. 105-244, Sec. 301(c)(5)(B)(i), substituted

''sections 1066d(1) and 1066e'' for ''sections 1132c-4(1) and

1132c-5'' in introductory provisions.

Subsec. (b)(8). Pub. L. 105-244, Sec. 306(b)(1), substituted ''5

percent'' for ''10 percent'' wherever appearing.

Subsec. (b)(10). Pub. L. 105-244, Sec. 301(c)(5)(B)(ii),

substituted ''section 1066c'' for ''section 1132c-3''.

Subsec. (d). Pub. L. 105-244, Sec. 301(c)(5)(B)(iii), made

technical amendment to reference in original act which appears in

text as reference to subsection (c)(1) of this section.

Subsec. (e). Pub. L. 105-244, Sec. 306(b)(2), added subsec. (e).

1994 - Subsec. (b)(8)(A). Pub. L. 103-382, Sec. 360C(1)(A),

inserted before semicolon '', with each eligible institution

required to maintain in the escrow account an amount equal to 10

percent of the outstanding principal of all loans made to such

institution under this part''.

Subsec. (b)(8)(B)(ii). Pub. L. 103-382, Sec. 360C(1)(B), amended

cl. (ii) generally. Prior to amendment, cl. (ii) read as follows:

''when all bonds under this part are retired or canceled, shall be

divided among the eligible institutions making deposits into such

account on the basis of the amount of each such institution's

deposit;''.

Subsec. (b)(11). Pub. L. 103-382, Sec. 360C(2), substituted

''conditions'' for ''regulations''.

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 sections 1066a, 1066d of this

title.

-CITE-

20 USC Sec. 1066c 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part D - Historically Black College and University Capital

Financing

-HEAD-

Sec. 1066c. Limitations on Federal insurance for bonds issued by

designated bonding authority

-STATUTE-

(a) Limit on amount

At no time shall the aggregate principal amount of outstanding

bonds insured under this part together with any accrued unpaid

interest thereon exceed $375,000,000, of which -

(1) not more than $250,000,000 shall be used for loans to

eligible institutions that are private historically Black

colleges and universities; and

(2) not more than $125,000,000 shall be used for loans to

eligible institutions which are historically Black public

colleges and universities.

For purposes of paragraphs (1) and (2), Lincoln University of

Pennsylvania is an historically Black public institution. No

institution of higher education that has received assistance under

section 123 of this title shall be eligible to receive assistance

under this part.

(b) Limitation on credit authority

The authority of the Secretary to issue letters of credit and

insurance under this part is effective only to the extent provided

in advance by appropriations Acts.

(c) Religious activity prohibition

No loan may be made under this part for any educational program,

activity or service related to sectarian instruction or religious

worship or provided by a school or department of divinity or to an

institution in which a substantial portion of its functions is

subsumed in a religious mission.

(d) Discrimination prohibition

No loan may be made to an institution under this part if the

institution discriminates on account of race, color, religion,

national origin, sex (to the extent provided in title IX of the

Education Amendments of 1972 (20 U.S.C. 1681 et seq.)), or

disabling condition; except that the prohibition with respect to

religion shall not apply to an institution which is controlled by

or which is closely identified with the tenets of a particular

religious organization if the application of this section would not

be consistent with the religious tenets of such organization.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 344, formerly title VII, Sec. 724,

as added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106

Stat. 745; renumbered title III, Sec. 344, Pub. L. 105-244, title

III, Sec. 301(a)(3), (4), Oct. 7, 1998, 112 Stat. 1636.)

-REFTEXT-

REFERENCES IN TEXT

The Education Amendments of 1972, referred to in subsec. (d), is

Pub. L. 92-318, June 23, 1972, 86 Stat. 235, as amended. Title IX

of the Act, known as the Patsy Takemoto Mink Equal Opportunity in

Education Act, is classified principally to chapter 38 (Sec. 1681

et seq.) of this title. For complete classification of title IX to

the Code, see Short Title note set out under section 1681 of this

title and Tables.

-COD-

CODIFICATION

Section was formerly classified to section 1132c-3 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

PRIOR PROVISIONS

A prior section 344 of Pub. L. 89-329 was classified to section

1069 of this title prior to the general amendment of this

subchapter by Pub. L. 99-498.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1066a, 1066b of this

title.

-CITE-

20 USC Sec. 1066d 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part D - Historically Black College and University Capital

Financing

-HEAD-

Sec. 1066d. Authority of Secretary

-STATUTE-

In the performance of, and with respect to, the functions vested

in the Secretary by this part, the Secretary -

(1) shall, within 120 days of July 23, 1992, publish in the

Federal Register a notice and request for proposals for any

private for-profit organization or entity wishing to serve as the

designated bonding authority under this part, which notice shall

-

(A) specify the time and manner for submission of proposals;

and

(B) specify any information, qualifications, criteria, or

standards the Secretary determines to be necessary to evaluate

the financial capacity and administrative capability of any

applicant to carry out the responsibilities of the designated

bonding authority under this part;

(2) shall require that the first loans for capital projects

authorized under section 1066b of this title be made no later

than March 31, 1994;

(3) may sue and be sued in any court of record of a State

having general jurisdiction or in any district court of the

United States, and such district courts shall have jurisdiction

of civil actions arising under this part without regard to the

amount in controversy, and any action instituted under this part

without regard to the amount in controversy, and any action

instituted under this section by or against the Secretary shall

survive notwithstanding any change in the person occupying the

office of the Secretary or any vacancy in such office;

(4)(A) may foreclose on any property and bid for and purchase

at any foreclosure, or any other sale, any property in connection

with which the Secretary has been assigned a loan pursuant to

this part; and

(B) in the event of such an acquisition, notwithstanding any

other provisions of law relating to the acquisition, handling, or

disposal of real property by the United States, complete,

administer, remodel and convert, dispose of, lease, and otherwise

deal with, such property, except that -

(i) such action shall not preclude any other action by the

Secretary to recover any deficiency in the amount of a loan

assigned to the Secretary; and

(ii) any such acquisition of real property shall not deprive

any State or political subdivision thereof of its civil or

criminal jurisdiction in and over such property or impair the

civil rights under the State or local laws of the inhabitants

on such property;

(5) may sell, exchange, or lease real or personal property and

securities or obligations;

(6) may include in any contract such other covenants,

conditions, or provisions necessary to ensure that the purposes

of this part will be achieved; and

(7) may, directly or by grant or contract, provide technical

assistance to eligible institutions to prepare the institutions

to qualify, apply for, and maintain a capital improvement loan,

including a loan under this part.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 345, formerly title VII, Sec. 725,

as added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106

Stat. 745; amended Pub. L. 103-208, Sec. 2(j)(16), Dec. 20, 1993,

107 Stat. 2481; renumbered title III, Sec. 345, and amended Pub. L.

105-244, title III, Sec. 301(a)(3), (4), (c)(6), 306(c), Oct. 7,

1998, 112 Stat. 1636, 1637, 1647.)

-COD-

CODIFICATION

Section was formerly classified to section 1132c-4 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

PRIOR PROVISIONS

A prior section 345 of Pub. L. 89-329 was classified to section

1069a of this title prior to the general amendment of this

subchapter by Pub. L. 99-498.

AMENDMENTS

1998 - Par. (2). Pub. L. 105-244, Sec. 301(c)(6), substituted

''section 1066b'' for ''section 1132c-2''.

Par. (7). Pub. L. 105-244, Sec. 306(c), added par. (7).

1993 - Pars. (2) to (6). Pub. L. 103-208 added par. (2) and

redesignated former pars. (2) to (5) as (3) to (6), 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1066a, 1066b, 1066g,

1068h of this title.

-CITE-

20 USC Sec. 1066e 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part D - Historically Black College and University Capital

Financing

-HEAD-

Sec. 1066e. Repealed. Pub. L. 105-244, title III, Sec. 306(d), Oct.

7, 1998, 112 Stat. 1647

-MISC1-

Section, Pub. L. 89-329, title III, Sec. 346, formerly title VII,

Sec. 726, as added Pub. L. 102-325, title VII, Sec. 704, July 23,

1992, 106 Stat. 746; amended Pub. L. 103-208, Sec. 2(j)(17), Dec.

20, 1993, 107 Stat. 2481; renumbered title III, Sec. 346, Pub. L.

105-244, title III, Sec. 301(a)(3), (4), Oct. 7, 1998, 112 Stat.

1636, prohibited institution receiving a loan under this part from

receiving grant under former part A of subchapter VII of this

chapter.

-COD-

CODIFICATION

Section was formerly classified to section 1132c-5 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

EFFECTIVE DATE OF REPEAL

Repeal effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC Sec. 1066f 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part D - Historically Black College and University Capital

Financing

-HEAD-

Sec. 1066f. HBCU Capital Financing Advisory Board

-STATUTE-

(a) Establishment and purpose

There is established within the Department of Education, the

Historically Black College and Universities Capital Financing

Advisory Board (hereinafter in this part referred to as the

''Advisory Board'') which shall provide advice and counsel to the

Secretary and the designated bonding authority as to the most

effective and efficient means of implementing construction

financing on African American college campuses, and advise the

Congress of the United States regarding the progress made in

implementing this part. The Advisory Board shall meet with the

Secretary at least twice each year to advise him as to the capital

needs of historically Black colleges and universities, how those

needs can be met through the program authorized by this part, and

what additional steps might be taken to improve the operation and

implementation of the construction financing program.

(b) Board membership

(1) Composition

The Advisory Board shall be appointed by the Secretary and

shall be composed of 9 members as follows:

(A) The Secretary or the Secretary's designee.

(B) Three members who are presidents of private historically

Black colleges or universities.

(C) Two members who are presidents of public historically

Black colleges or universities.

(D) The president of the United Negro College Fund, Inc., or

the president's designee.

(E) The president of the National Association for Equal

Opportunity in Higher Education, or the designee of the

Association.

(F) The executive director of the White House Initiative on

historically Black colleges and universities.

(2) Terms

The term of office of each member appointed under paragraphs

(1)(B) and (1)(C) shall be 3 years, except that -

(A) of the members first appointed pursuant to paragraphs

(1)(B) and (1)(C), 2 shall be appointed for terms of 1 year,

and 3 shall be appointed for terms of 2 years;

(B) members appointed to fill a vacancy occurring before the

expiration of a term of a member shall be appointed to serve

the remainder of that term; and

(C) a member may continue to serve after the expiration of a

term until a successor is appointed.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 347, formerly title VII, Sec. 727,

as added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106

Stat. 746; renumbered title III, Sec. 347, and amended Pub. L.

105-244, title III, Sec. 301(a)(3), (4), 306(e), Oct. 7, 1998, 112

Stat. 1636, 1647.)

-COD-

CODIFICATION

Section was formerly classified to section 1132c-6 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

PRIOR PROVISIONS

A prior section 347 of Pub. L. 89-329 was classified to section

1069c of this title prior to the general amendment of this

subchapter by Pub. L. 99-498.

AMENDMENTS

1998 - Subsec. (b)(1)(D). Pub. L. 105-244, Sec. 306(e)(1)(A),

inserted '', or the president's designee.'' after ''Fund, Inc.''

Subsec. (b)(1)(E). Pub. L. 105-244, Sec. 306(e)(1)(B), inserted

'', or the designee of the Association'' before the period.

Subsec. (c). Pub. L. 105-244, Sec. 306(e)(2), struck out heading

and text of subsec. (c). Text read as follows: ''There are

authorized to be appropriated $50,000 for fiscal year 1993 and each

of the 4 succeeding fiscal years to carry out 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.

TERMINATION OF ADVISORY BOARDS

Advisory boards established after Jan. 5, 1973, to terminate not

later than the expiration of the 2-year period beginning on the

date of their establishment, unless, in the case of a board

established by the President or an officer of the Federal

Government, such board is renewed by appropriate action prior to

the expiration of such 2-year period, or in the case of a board

established by Congress, its duration is otherwise provided by

law. See sections 3(2) and 14 of Pub. L. 92-463, Oct. 6, 1972, 86

Stat. 770, 776, set out in the Appendix to Title 5, Government

Organization and Employees.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1066a, 1068h of this

title.

-CITE-

20 USC Sec. 1066g 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part D - Historically Black College and University Capital

Financing

-HEAD-

Sec. 1066g. Minority business enterprise utilization

-STATUTE-

In the performance of and with respect to the Secretary's

effectuation of his responsibilities under section 1066d(1) of this

title and to the maximum extent feasible in the implementation of

the purposes of this part, minority business persons, including

bond underwriters and credit enhancers, bond counsel, marketers,

accountants, advisors, construction contractors, and managers

should be utilized.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 348, formerly title VII, Sec. 728,

as added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106

Stat. 747; renumbered title III, Sec. 348, and amended Pub. L.

105-244, title III, Sec. 301(a)(3), (4), (c)(7), Oct. 7, 1998, 112

Stat. 1636, 1637.)

-COD-

CODIFICATION

Section was formerly classified to section 1132c-7 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

AMENDMENTS

1998 - Pub. L. 105-244, Sec. 301(c)(7), substituted ''section

1066d(1)'' for ''section 1132c-4(1)''.

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 Part E - Minority Science and Engineering

Improvement Program 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

.

-HEAD-

Part E - Minority Science and Engineering Improvement Program

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 1068, 1068h of this title.

-CITE-

20 USC subpart 1 - minority science and engineering

improvement program 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 1 - minority science and engineering improvement program

.

-HEAD-

subpart 1 - minority science and engineering improvement program

-COD-

CODIFICATION

Pub. L. 105-244, title III, Sec. 301(a)(5), 307(d), Oct. 7, 1998,

112 Stat. 1636, 1648, redesignated subpart 1 (Sec. 1135b et seq.)

of part B of subchapter X of this chapter as subpart 1 of part E of

subchapter III of this chapter and inserted ''and engineering''

before ''improvement program'' in heading.

-CITE-

20 USC Sec. 1067 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 1 - minority science and engineering improvement program

-HEAD-

Sec. 1067. Findings

-STATUTE-

Congress makes the following findings:

(1) It is incumbent on the Federal Government to support the

technological and economic competitiveness of the United States

by improving and expanding the scientific and technological

capacity of the United States. More and better prepared

scientists, engineers, and technical experts are needed to

improve and expand such capacity.

(2) As the Nation's population becomes more diverse, it is

important that the educational and training needs of all

Americans are met. Underrepresentation of minorities in science

and technological fields diminishes our Nation's competitiveness

by impairing the quantity of well prepared scientists, engineers,

and technical experts in these fields.

(3) Despite significant limitations in resources, minority

institutions provide an important educational opportunity for

minority students, particularly in science and engineering

fields. Aid to minority institutions is a good way to address

the underrepresentation of minorities in science and

technological fields.

(4) There is a strong Federal interest in improving science and

engineering programs at minority institutions as such programs

lag behind in program offerings and in student enrollment

compared to such programs at other institutions of higher

education.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 350, as added Pub. L. 105-244,

title III, Sec. 307(a), Oct. 7, 1998, 112 Stat. 1647.)

-MISC1-

PRIOR PROVISIONS

A prior section 1067, Pub. L. 89-329, title III, Sec. 352, as

added Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100

Stat. 1304, and amended, which related to waiver authority and

reporting requirement, was renumbered section 392 of Pub. L. 89-329

by Pub. L. 105-244, title III, Sec. 301(a)(2), Oct. 7, 1998, 112

Stat. 1636, and transferred to section 1068a of this title.

Another prior section 1067, Pub. L. 89-329, title III, Sec. 342,

as added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94

Stat. 1398, set waiver authority and reporting requirements for

this part, prior to the general amendment of this subchapter by

Pub. L. 99-498.

Another prior section 1067, Pub. L. 89-329, title IV, Sec. 407,

Nov. 8, 1965, 79 Stat. 1234; Pub. L. 90-575, title I, Sec.

101(b)(2), 103, 104, Oct. 16, 1968, 82 Stat. 1017, 1018, related to

agreements with institutions, required provisions and use of funds

as additional Federal capital contribution for student loan fund,

prior to the general amendment of part A of subchapter IV of this

chapter by Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972,

86 Stat. 247.

EFFECTIVE DATE

Section effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC Sec. 1067a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 1 - minority science and engineering improvement program

-HEAD-

Sec. 1067a. Purpose; authority

-STATUTE-

(a) Congressional declaration of purpose

It is the purpose of this subpart to continue the authority of

the Department to operate the Minority Institutions Science

Improvement Program created under section 1862(a)(1) of title 42

and transferred to the Department by section 3444(a)(1) (FOOTNOTE

1) of this title.

(FOOTNOTE 1) See References in Text note below.

(b) Grant authority

The Secretary shall, in accordance with the provisions of this

subpart, carry out a program of making grants to institutions of

higher education that are designed to effect long-range improvement

in science and engineering education at predominantly minority

institutions and to increase the participation of underrepresented

ethnic minorities, particularly minority women, in scientific and

technological careers.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 351, formerly title X, Sec. 1021,

as added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100

Stat. 1561; amended Pub. L. 102-325, title X, Sec. 1002(a), July

23, 1992, 106 Stat. 780; renumbered title III, Sec. 351, Pub. L.

105-244, title III, Sec. 301(a)(5), (7), Oct. 7, 1998, 112 Stat.

1636.)

-REFTEXT-

REFERENCES IN TEXT

Section 3444(a)(1) of this title, referred to in subsec. (a), was

in the original a reference to section 304(a)(1) of the Department

of Education Organization Act of 1979. Sections 304 and 305 of that

Act were renumbered as sections 303 and 304, respectively, by Pub.

L. 103-382, title II, Sec. 271(a)(2), Oct. 20, 1994, 108 Stat.

3929, and are classified to sections 3444 and 3445, respectively,

of this title.

-COD-

CODIFICATION

Section was formerly classified to section 1135b of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

PRIOR PROVISIONS

A prior section 351 of Pub. L. 89-329 was renumbered section 391

and is classified to section 1068 of this title.

AMENDMENTS

1992 - Subsec. (b). Pub. L. 102-325 inserted '', particularly

minority women,'' after ''ethnic minorities''.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1067h of this title.

-CITE-

20 USC Sec. 1067b 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 1 - minority science and engineering improvement program

-HEAD-

Sec. 1067b. Grant recipient selection

-STATUTE-

(a) Establishment of criteria

Grants under this subpart shall be awarded on the basis of

criteria established by the Secretary by regulations.

(b) Priorities to be given in criteria

In establishing criteria under subsection (a) of this section,

the Secretary shall give priority to applicants which have not

previously received funding from the Minority Institutions Science

Improvement Program and to previous grantees with a proven record

of success, as well as to applications that contribute to achieving

balance among projects with respect to geographic region, academic

discipline, and project type.

(c) Required criteria

In establishing criteria under subsection (a) of this section,

the Secretary may consider the following selection criteria in

making grants:

(1) plan of operation;

(2) quality of key personnel;

(3) budget and cost effectiveness;

(4) evaluation plan;

(5) adequacy of resources;

(6) identification of need for the project;

(7) potential institutional impact of the project;

(8) institutional commitment to the project;

(9) expected outcomes; and

(10) scientific and educational value of the proposed project.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 352, formerly title X, Sec. 1022,

as added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100

Stat. 1561; renumbered title III, Sec. 352, Pub. L. 105-244, title

III, Sec. 301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636.)

-COD-

CODIFICATION

Section was formerly classified to section 1135b-1 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

PRIOR PROVISIONS

A prior section 352 of Pub. L. 89-329 was renumbered section 392

and is classified to section 1068a of this title.

-CITE-

20 USC Sec. 1067c 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 1 - minority science and engineering improvement program

-HEAD-

Sec. 1067c. Use of funds

-STATUTE-

(a) Types of grants

Funds appropriated to carry out this subpart may be made

available as -

(1) institutional grants (as defined in section 1067k(6) of

this title);

(2) cooperative grants (as defined in section 1067k(7) of this

title);

(3) design projects (as defined in section 1067k(8) of this

title); or

(4) special projects (as defined in section 1067k(9) of this

title).

(b) Authorized uses for each type of grant

(1) The authorized uses of funds made available as institutional

grants include (but are not limited to) -

(A) faculty development programs; or

(B) development of curriculum materials.

(2) The authorized uses of funds made available as cooperative

grants include (but are not limited to) -

(A) assisting institutions in sharing facilities and personnel;

(B) disseminating information about established programs in

science and engineering;

(C) supporting cooperative efforts to strengthen the

institutions' science and engineering programs; or

(D) carrying out a combination of any of the activities in

subparagraphs (A) through (C).

(3) The authorized uses of funds made available as design

projects include (but are not limited to) -

(A) developing planning, management, and evaluation systems; or

(B) developing plans for initiating scientific research and for

improving institutions' capabilities for such activities.

Funds used for design project grants may not be used to pay more

than 50 percent of the salaries during any academic year of faculty

members involved in the project.

(4) The authorized uses of funds made available as special

projects include (but are not limited to) -

(A) advanced science seminars;

(B) science faculty workshops and conferences;

(C) faculty training to develop specific science research or

education skills;

(D) research in science education;

(E) programs for visiting scientists;

(F) preparation of films or audio-visual materials in science;

(G) development of learning experiences in science beyond those

normally available to minority undergraduate students;

(H) development of pre-college enrichment activities in

science; or

(I) any other activities designed to address specific barriers

to the entry of minorities into science.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 353, formerly title X, Sec. 1023,

as added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100

Stat. 1562; renumbered title III, Sec. 353, and amended Pub. L.

105-244, title III, Sec. 301(a)(5), (7), (c)(8), Oct. 7, 1998, 112

Stat. 1636, 1637.)

-COD-

CODIFICATION

Section was formerly classified to section 1135b-2 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

PRIOR PROVISIONS

A prior section 353 of Pub. L. 89-329 was renumbered section 393

and is classified to section 1068b of this title.

AMENDMENTS

1998 - Subsec. (a)(1). Pub. L. 105-244, Sec. 301(c)(8)(A),

substituted ''section 1067k(6)'' for ''section 1135d-5(6)''.

Subsec. (a)(2). Pub. L. 105-244, Sec. 301(c)(8)(B), substituted

''section 1067k(7)'' for ''section 1135d-5(7)''.

Subsec. (a)(3). Pub. L. 105-244, Sec. 301(c)(8)(C), substituted

''section 1067k(8)'' for ''section 1135d-5(8)''.

Subsec. (a)(4). Pub. L. 105-244, Sec. 301(c)(8)(D), substituted

''section 1067k(9)'' for ''section 1135d-5(9)''.

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. 1067d 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 1 - minority science and engineering improvement program

-HEAD-

Sec. 1067d. Omitted

-COD-

CODIFICATION

Section, Pub. L. 89-329, title III, formerly title X, Sec. 1024,

as added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100

Stat. 1562; amended Pub. L. 102-325, title X, Sec. 1002(b), July

23, 1992, 106 Stat. 780; renumbered title III, Pub. L. 105-244,

title III, Sec. 301(a)(5), Oct. 7, 1998, 112 Stat. 1636, required

Secretary to submit to President and Congress a report by Jan. 1,

1996, summarizing and evaluating Federal programs which seek to

increase minority participation and representation in scientific

fields.

Section was formerly classified to section 1135b-3 of this title

prior to renumbering by Pub. L. 105-244.

-CITE-

20 USC subpart 2 - administrative and general provisions 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 2 - administrative and general provisions

.

-HEAD-

subpart 2 - administrative and general provisions

-COD-

CODIFICATION

Pub. L. 105-244, title III, Sec. 301(a)(5), Oct. 7, 1998, 112

Stat. 1636, redesignated subpart 3 (Sec. 1135d et seq.) of part B

of subchapter X of this chapter as subpart 2 of part E of

subchapter III of this chapter.

-CITE-

20 USC Sec. 1067g 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 2 - administrative and general provisions

-HEAD-

Sec. 1067g. Eligibility for grants

-STATUTE-

Eligibility to receive grants under this part is limited to -

(1) public and private nonprofit institutions of higher

education that -

(A) award baccalaureate degrees; and

(B) are minority institutions;

(2) public or private nonprofit institutions of higher

education that -

(A) award associate degrees; and

(B) are minority institutions that -

(i) have a curriculum that includes science or engineering

subjects; and

(ii) enter into a partnership with public or private

nonprofit institutions of higher education that award

baccalaureate degrees in science and engineering;

(3) nonprofit science-oriented organizations, professional

scientific societies, and institutions of higher education that

award baccalaureate degrees, that -

(A) provide a needed service to a group of minority

institutions; or

(B) provide in-service training for project directors,

scientists, and engineers from minority institutions; or

(4) consortia of organizations, that provide needed services to

one or more minority institutions, the membership of which may

include -

(A) institutions of higher education which have a curriculum

in science or engineering;

(B) institutions of higher education that have a graduate or

professional program in science or engineering;

(C) research laboratories of, or under contract with, the

Department of Energy;

(D) private organizations that have science or engineering

facilities; or

(E) quasi-governmental entities that have a significant

scientific or engineering mission.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 361, formerly title X, Sec. 1041,

as added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100

Stat. 1564; renumbered title III, Sec. 361, and amended Pub. L.

105-244, title III, Sec. 301(a)(5), (7), (b), (c)(9), 307(b), Oct.

7, 1998, 112 Stat. 1636, 1637, 1648.)

-COD-

CODIFICATION

Section was formerly classified to section 1135d of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

AMENDMENTS

1998 - Pub. L. 105-244, Sec. 307(b), amended section catchline

and text generally. Prior to amendment, text read as follows:

''Eligibility to receive grants under this part is limited to -

''(1) public and private nonprofit institutions that are

minority institutions (as defined in section 1067k(3) of this

title); and

''(2) nonprofit science-oriented organizations, professional

scientific societies, and all nonprofit, accredited colleges and

universities which provide a needed service to a group of

eligible minority institutions or which provide in-service

training for project directors, scientists, and engineers from

eligible minority institutions.''

Par. (1). Pub. L. 105-244, Sec. 301(c)(9), substituted ''section

1067k(3)'' for ''section 1135d-5(3)''.

Pub. L. 105-244, Sec. 301(b)(1), inserted ''and'' after the

semicolon.

Par. (2). Pub. L. 105-244, Sec. 301(b)(2), substituted a period

for ''; and''.

Par. (3). Pub. L. 105-244, Sec. 301(b)(3), struck out par. (3)

which read as follows: ''for the purposes of section 1135c-1 of

this title, public and private nonprofit institutions that have at

least 10 percent minority enrollment.''

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 1067h of this title.

-CITE-

20 USC Sec. 1067h 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 2 - administrative and general provisions

-HEAD-

Sec. 1067h. Grant application

-STATUTE-

(a) Submission and contents of applications

An eligible applicant (as determined under section 1067g of this

title) that desires to receive a grant under this part shall submit

to the Secretary an application therefor at such time or times, in

such manner, and containing such information as the Secretary may

prescribe by regulation. Such application shall set forth -

(1) a program of activities for carrying out one or more of the

purposes described in section 1067a(b) of this title in such

detail as will enable the Secretary to determine the degree to

which such program will accomplish such purpose or purposes; and

(2) such other policies, procedures, and assurances as the

Secretary may require by regulation.

(b) Approval based on likelihood of progress

The Secretary shall approve an application only if the Secretary

determines that the application sets forth a program of activities

which are likely to make substantial progress toward achieving the

purposes of this part.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 362, formerly title X, Sec. 1042,

as added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100

Stat. 1564; renumbered title III, Sec. 362, and amended Pub. L.

105-244, title III, Sec. 301(a)(5), (7), (c)(10), Oct. 7, 1998, 112

Stat. 1636, 1637.)

-COD-

CODIFICATION

Section was formerly classified to section 1135d-1 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-244, Sec. 301(c)(10), substituted

''section 1067g'' for ''section 1135d'' in introductory provisions

and ''section 1067a(b)'' for ''section 1135b(b)'' in par. (1).

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. 1067i 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 2 - administrative and general provisions

-HEAD-

Sec. 1067i. Cross program and cross agency cooperation

-STATUTE-

The Minority Science and Engineering Improvement Programs shall

cooperate and consult with other programs within the Department and

within Federal, State, and private agencies which carry out

programs to improve the quality of science, mathematics, and

engineering education.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 363, formerly title X, Sec. 1043,

as added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100

Stat. 1564; amended Pub. L. 102-325, title X, Sec. 1002(d), July

23, 1992, 106 Stat. 780; renumbered title III, Sec. 363, Pub. L.

105-244, title III, Sec. 301(a)(5), (7), Oct. 7, 1998, 112 Stat.

1636.)

-COD-

CODIFICATION

Section was formerly classified to section 1135d-2 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

AMENDMENTS

1992 - Pub. L. 102-325 inserted ''and consult'' after

''cooperate''.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by 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.

-CITE-

20 USC Sec. 1067j 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 2 - administrative and general provisions

-HEAD-

Sec. 1067j. Administrative provisions

-STATUTE-

(a) Technical staff

The Secretary shall appoint, without regard to the provisions of

title 5 governing appointments in the competitive service, not less

than 2 technical employees with appropriate scientific and

educational background to administer the programs under this part

who may be paid without regard to the provisions of chapter 51 and

subchapter III of chapter 53 of such title relating to

classification and General Schedule pay rates.

(b) Procedures for grant review

The Secretary shall establish procedures for reviewing and

evaluating grants and contracts made or entered into under such

programs. Procedures for reviewing grant applications, based on

the peer review system, or contracts for financial assistance under

this subchapter may not be subject to any review outside of

officials responsible for the administration of the Minority

Science and Engineering Improvement Programs.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 364, formerly title X, Sec. 1044,

as added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100

Stat. 1564; renumbered title III, Sec. 364, Pub. L. 105-244, title

III, Sec. 301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636.)

-REFTEXT-

REFERENCES IN TEXT

The provisions of title 5 governing appointments in the

competitive service, referred to in subsec. (a), are classified to

section 3301 et seq. of Title 5, Government Organization and

Employees.

-COD-

CODIFICATION

Section was formerly classified to section 1135d-3 of this title

prior to renumbering by Pub. L. 105-244.

-CITE-

20 USC Sec. 1067k 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 2 - administrative and general provisions

-HEAD-

Sec. 1067k. Definitions

-STATUTE-

For the purpose of this part -

(1) The term ''accredited'' means currently certified by a

nationally recognized accrediting agency or making satisfactory

progress toward achieving accreditation.

(2) The term ''minority'' means American Indian, Alaskan

Native, Black (not of Hispanic origin), Hispanic (including

persons of Mexican, Puerto Rican, Cuban, and Central or South

American origin), Pacific Islander or other ethnic group

underrepresented in science and engineering.

(3) The term ''minority institution'' means an institution of

higher education whose enrollment of a single minority or a

combination of minorities (as defined in paragraph (2)) exceeds

50 percent of the total enrollment. The Secretary shall verify

this information from the data on enrollments in the higher

education general information surveys (HEGIS) furnished by the

institution to the Office for Civil Rights, Department of

Education.

(4) The term ''science'' means, for the purpose of this

program, the biological, engineering, mathematical, physical,

behavioral, and social sciences, and history and philosophy of

science; also included are interdisciplinary fields which are

comprised of overlapping areas among two or more sciences.

(5) The term ''underrepresented in science and engineering''

means a minority group whose number of scientists and engineers

per 10,000 population of that group is substantially below the

comparable figure for scientists and engineers who are white and

not of Hispanic origin.

(6) The term ''institutional grant'' means a grant that

supports the implementation of a comprehensive science

improvement plan, which may include any combination of activities

for improving the preparation of minority students for careers in

science.

(7) The term ''cooperative grant'' means a grant that assists

groups of nonprofit accredited colleges and universities to work

together to conduct a science improvement program.

(8) The term ''design projects'' means projects that assist

minority institutions that do not have their own appropriate

resources or personnel to plan and develop long-range science

improvement programs.

(9) The term ''special projects'' means -

(A) a special project grant to a minority institution which

support activities that -

(i) improve the quality of training in science and

engineering at minority institutions; or

(ii) enhance the minority institutions' general scientific

research capabilities; or

(B) a special project grant to any eligible applicant which

supports activities that -

(i) provide a needed service to a group of eligible

minority institutions; or

(ii) provide in-service training for project directors,

scientists, and engineers from eligible minority

institutions.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 365, formerly title X, Sec. 1046,

as added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100

Stat. 1566; renumbered title III, Sec. 365, and amended Pub. L.

105-244, title III, Sec. 301(a)(5), (7), 307(c), Oct. 7, 1998, 112

Stat. 1636, 1648.)

-COD-

CODIFICATION

Section was formerly classified to section 1135d-5 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

AMENDMENTS

1998 - Par. (4). Pub. L. 105-244, Sec. 307(c), inserted

''behavioral,'' after ''physical,''.

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 sections 1067c, 1131-1 of this

title; title 10 section 2323.

-CITE-

20 USC Sec. 1067l 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part E - Minority Science and Engineering Improvement Program

subpart 2 - administrative and general provisions

-HEAD-

Sec. 1067l. Repealed. Pub. L. 105-244, title III, Sec. 301(a)(8),

Oct. 7, 1998, 112 Stat. 1636

-MISC1-

Section, Pub. L. 89-329, title III, Sec. 366, formerly title X,

Sec. 1047, as added Pub. L. 99-498, title X, Sec. 1002, Oct. 17,

1986, 100 Stat. 1567; amended Pub. L. 100-418, title VI, Sec. 6221,

Aug. 23, 1988, 102 Stat. 1518; Pub. L. 102-325, title X, Sec.

1002(f), July 23, 1992, 106 Stat. 780; renumbered title III, Sec.

366, Pub. L. 105-244, title III, Sec. 301(a)(5), (7), Oct. 7, 1998,

112 Stat. 1636, authorized appropriations to carry out Fund for

Improvement of Postsecondary Education program.

-COD-

CODIFICATION

Section was formerly classified to section 1135d-6 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

EFFECTIVE DATE OF REPEAL

Repeal effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC Part F - General Provisions 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part F - General Provisions

.

-HEAD-

Part F - General Provisions

-COD-

CODIFICATION

Pub. L. 105-244, title III, Sec. 301(a)(1), Oct. 7, 1998, 112

Stat. 1636, redesignated part D (Sec. 1066 et seq.) of this

subchapter as part F of this subchapter.

-CITE-

20 USC Sec. 1068 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part F - General Provisions

-HEAD-

Sec. 1068. Applications for assistance

-STATUTE-

(a) Applications

(1) Applications required

Any institution which is eligible for assistance under this

subchapter shall submit to the Secretary an application for

assistance at such time, in such form, and containing such

information, as may be necessary to enable the Secretary to

evaluate the institution's need for the assistance. Subject to

the availability of appropriations to carry out this subchapter,

the Secretary may approve an application for assistance under

this subchapter only if the Secretary determines that -

(A) the application meets the requirements of subsection (b)

of this section;

(B) the applicant is eligible for assistance in accordance

with the part of this subchapter under which the assistance is

sought; and

(C) the applicant's performance goals are sufficiently

rigorous as to meet the purposes of this subchapter and the

performance objectives and indicators for this subchapter

established by the Secretary pursuant to the Government

Performance and Results Act of 1993 and the amendments made by

such Act.

(2) Preliminary applications

In carrying out paragraph (1), the Secretary may develop a

preliminary application for use by eligible institutions applying

under part A of this subchapter prior to the submission of the

principal application.

(b) Contents

An institution, in its application for a grant, shall -

(1) set forth, or describe how the institution (other than an

institution applying under part C, D or E of this subchapter)

will develop, a comprehensive development plan to strengthen the

institution's academic quality and institutional management, and

otherwise provide for institutional self-sufficiency and growth

(including measurable objectives for the institution and the

Secretary to use in monitoring the effectiveness of activities

under this subchapter);

(2) set forth policies and procedures to ensure that Federal

funds made available under this subchapter for any fiscal year

will be used to supplement and, to the extent practical, increase

the funds that would otherwise be made available for the purposes

of section 1057(b) or 1062 of this title, and in no case supplant

those funds;

(3) set forth policies and procedures for evaluating the

effectiveness in accomplishing the purpose of the activities for

which a grant is sought under this subchapter;

(4) provide for such fiscal control and fund accounting

procedures as may be necessary to ensure proper disbursement of

and accounting for funds made available to the applicant under

this subchapter;

(5) provide (A) for making such reports, in such form and

containing such information, as the Secretary may require to

carry out the functions under this subchapter, including not less

than one report annually setting forth the institution's progress

toward achieving the objectives for which the funds were awarded,

and (B) for keeping such records and affording such access

thereto, as the Secretary may find necessary to assure the

correctness and verification of such reports;

(6) provide that the institution will comply with the

limitations set forth in section 1068e of this title, except that

for purposes of section 1059c of this title, paragraphs (2) and

(3) of section 1068e of this title shall not apply;

(7) describe in a comprehensive manner any proposed project for

which funds are sought under the application and include -

(A) a description of the various components of the proposed

project, including the estimated time required to complete each

such component;

(B) in the case of any development project which consists of

several components (as described by the applicant pursuant to

subparagraph (A)), a statement identifying those components

which, if separately funded, would be sound investments of

Federal funds and those components which would be sound

investments of Federal funds only if funded under this

subchapter in conjunction with other parts of the development

project (as specified by the applicant);

(C) an evaluation by the applicant of the priority given any

proposed project for which funds are sought in relation to any

other projects for which funds are sought by the applicant

under this subchapter, and a similar evaluation regarding

priorities among the components of any single proposed project

(as described by the applicant pursuant to subparagraph (A));

(D) a detailed budget showing the manner in which funds for

any proposed project would be spent by the applicant; and

(E) a detailed description of any activity which involves the

expenditure of more than $25,000, as identified in the budget

referred to in subparagraph (E); and

(8) include such other information as the Secretary may

prescribe.

(c) Priority criteria publication required

The Secretary shall publish in the Federal Register, pursuant to

chapter 5 of title 5, all policies and procedures required to

exercise the authority set forth in subsection (a) of this

section. No other criteria, policies, or procedures shall apply.

(d) Eligibility data

The Secretary shall use the most recent and relevant data

concerning the number and percentage of students receiving

need-based assistance under subchapter IV of this chapter and part

C of subchapter I of chapter 34 of title 42 in making eligibility

determinations under section 1058 of this title and shall advance

the base-year forward following each annual grant cycle.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 391, formerly Sec. 351, as added

Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat.

1302; amended Pub. L. 100-50, Sec. 2(a)(13), June 3, 1987, 101

Stat. 336; Pub. L. 102-325, title III, Sec. 305(a), July 23, 1992,

106 Stat. 478; renumbered Sec. 391 and amended Pub. L. 105-244,

title III, Sec. 301(a)(2), (c)(11), 308(a)-(c), Oct. 7, 1998, 112

Stat. 1636, 1637, 1648, 1649.)

-REFTEXT-

REFERENCES IN TEXT

The Government Performance and Results Act of 1993, referred to

in subsec. (a)(1)(C), is Pub. L. 103-62, Aug. 3, 1993, 107 Stat.

285, which enacted section 306 of Title 5, Government Organization

and Employees, sections 1115 to 1119, 9703, and 9704 of Title 31,

Money and Finance, and sections 2801 to 2805 of Title 39, Postal

Service, amended section 1105 of Title 31, and enacted provisions

set out as notes under sections 1101 and 1115 of Title 31. For

complete classification of this Act to the Code, see Short Title of

1993 Amendment note set out under section 1101 of Title 31 and

Tables.

-COD-

CODIFICATION

Section was formerly classified to section 1066 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

PRIOR PROVISIONS

A prior section 1068, Pub. L. 89-329, title III, Sec. 353, as

added Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100

Stat. 1305, which related to application review process, was

renumbered section 393 of Pub. L. 89-329 by Pub. L. 105-244, title

III, Sec. 301(a)(2), Oct. 7, 1998, 112 Stat. 1636, and transferred

to section 1068b of this title.

Another prior section 1068, Pub. L. 89-329, title III, Sec. 343,

as added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94

Stat. 1398, related to application review process and provided for

reader panels, recommendation of such panels, and notification to

institutions, prior to the general amendment of this subchapter by

Pub. L. 99-498.

Another prior section 1068, Pub. L. 89-329, title IV, Sec. 408,

Nov. 8, 1965, 79 Stat. 1235; Pub. L. 90-575, title I, Sec. 105(a),

Oct. 16, 1968, 82 Stat. 1018; Pub. L. 91-230, title VIII, Sec. 801,

Apr. 13, 1970, 84 Stat. 190; Pub. L. 92-318, title I, Sec.

131(a)(1)(B), June 23, 1972, 86 Stat. 247, related to programs for

identifying qualified low-income students and preparing them for

post secondary education, grants or contracts for planning,

developing or carrying out programs, ''Talent Search'' program,

''Upward Bound'' program, ''Special Services for Disadvantaged

Students'' program, nature of programs, waiver of matching

requirement in the ''Upward Bound'' program and authorization of

appropriations, prior to the general amendment of part A of

subchapter IV of this chapter by Pub. L. 92-318, title I, Sec.

131(b)(1), June 23, 1972, 86 Stat. 247.

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-244, Sec. 308(a), amended heading

and text of subsec. (a) generally. Prior to amendment, text read

as follows: ''Any institution which is eligible for assistance

under this subchapter shall submit to the Secretary an application

for assistance at such time, in such form, and containing such

information, as may be necessary to enable the Secretary to

evaluate its need for assistance. Subject to the availability of

appropriations to carry out this subchapter, the Secretary may

approve an application for a grant under this subchapter if the

application meets the requirements of subsection (b) of this

section and shows that the applicant is eligible for assistance in

accordance with the part of this subchapter under which the

assistance is sought.''

Subsec. (b)(1). Pub. L. 105-244, Sec. 308(b), inserted '', D or

E'' after ''part C''.

Subsec. (b)(6). Pub. L. 105-244, Sec. 301(c)(11), 308(c),

substituted ''section 1068e'' for ''section 1069c'' and inserted

'', except that for purposes of section 1059c of this title,

paragraphs (2) and (3) of section 1068e of this title shall not

apply'' before semicolon.

1992 - Subsec. (b)(7)(D) to (F). Pub. L. 102-325 redesignated

subpars. (E) and (F) as (D) and (E), respectively, and struck out

former subpar. (D) which read as follows: ''information explaining

the manner in which the proposed project will assist the applicant

to prepare for the critical financial problems that all

institutions of higher education will face during the subsequent

decade as a result of declining enrollment, and other problems;''.

1987 - Subsec. (b)(6). Pub. L. 100-50 substituted ''section 1069c

of this title'' for ''section 1069b of this title''.

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 1992 AMENDMENT

Amendment by 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.

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 1057, 1059a of this

title.

-CITE-

20 USC Sec. 1068a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part F - General Provisions

-HEAD-

Sec. 1068a. Waiver authority and reporting requirement

-STATUTE-

(a) Waiver requirements; need-based assistance students

The Secretary may waive the requirements set forth in section

1058(b)(1)(A) of this title in the case of an institution -

(1) which is extensively subsidized by the State in which it is

located and charges low or no tuition;

(2) which serves a substantial number of low-income students as

a percentage of its total student population;

(3) which is contributing substantially to increasing higher

education opportunities for educationally disadvantaged,

underrepresented, or minority students, who are low-income

individuals;

(4) which is substantially increasing higher educational

opportunities for individuals in rural or other isolated areas

which are unserved by postsecondary institutions;

(5) located on or near an Indian reservation or a substantial

population of Indians, if the Secretary determines that the

waiver will substantially increase higher education opportunities

appropriate to the needs of American Indians;

(6) that is a tribally controlled college or university as

defined in section 1801 of title 25; or

(7) wherever located, if the Secretary determines that the

waiver will substantially increase higher education opportunities

appropriate to the needs of Black Americans, Hispanic Americans,

Native Americans, Asian Americans, or Pacific Islanders,

including Native Hawaiians.

(b) Waiver determinations; expenditures

(1) The Secretary may waive the requirements set forth in section

1058(b)(1)(B) of this title if the Secretary determines, based on

persuasive evidence submitted by the institution, that the

institution's failure to meet that criterion is due to factors

which, when used in the determination of compliance with such

criterion, distort such determination, and that the institution's

designation as an eligible institution under part A of this

subchapter is otherwise consistent with the purposes of such parts.

(FOOTNOTE 1)

(FOOTNOTE 1) So in original. Probably should be ''part.''

(2) Omitted.

(3) The Secretary may waive the requirement set forth in section

1058(b)(1)(E) (FOOTNOTE 2) of this title in the case of an

institution located on or near an Indian reservation or a

substantial population of Indians, if the Secretary determines that

the waiver will substantially increase higher education

opportunities appropriate to the needs of American Indians.

(FOOTNOTE 2) See References in Text note below.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 392, formerly Sec. 352, as added

Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat.

1304; amended Pub. L. 100-50, Sec. 2(a)(14), (15), June 3, 1987,

101 Stat. 336; Pub. L. 102-325, title III, Sec. 305(b), July 23,

1992, 106 Stat. 478; renumbered Sec. 392 and amended Pub. L.

105-244, title III, Sec. 301(a)(2), 308(d), Oct. 7, 1998, 112 Stat.

1636, 1649.)

-REFTEXT-

REFERENCES IN TEXT

Section 1058(b)(1)(E) of this title, referred to in subsec.

(b)(3), was repealed and section 1058(b)(1)(F) was redesignated

section 1058(b)(1)(E) by Pub. L. 102-325, title III, Sec.

302(a)(1)(B), (C), July 23, 1992, 106 Stat. 472.

-COD-

CODIFICATION

Subsec. (b)(2) of this section, which required the Secretary to

submit a report to Congress every other year on institutions which,

although not satisfying the criterion contained in section

1058(b)(1)(B) of this title, have been determined to be eligible

institutions under part A of this subchapter, 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 79 of House Document No. 103-7.

Section was formerly classified to section 1067 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

AMENDMENTS

1998 - Subsec. (a)(5) to (7). Pub. L. 105-244 struck out ''or''

at end of par. (5), added par. (6), and redesignated former par.

(6) as (7).

1992 - Subsec. (a). Pub. L. 102-325 substituted ''Secretary may

waive'' for ''Secretary shall waive''.

1987 - Subsec. (a)(2). Pub. L. 100-50, Sec. 2(a)(14), substituted

''low-income'' for ''low- and middle-income''.

Subsec. (b)(3). Pub. L. 100-50, Sec. 2(a)(15), added par. (3).

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 1992 AMENDMENT

Amendment by 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.

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 1058 of this title.

-CITE-

20 USC Sec. 1068b 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part F - General Provisions

-HEAD-

Sec. 1068b. Application review process

-STATUTE-

(a) Review panel

(1) All applications submitted under this subchapter by

institutions of higher education shall be read by a panel of

readers composed of individuals selected by the Secretary. The

Secretary shall assure that no individual assigned under this

section to review any application has any conflict of interest with

regard to the application which might impair the impartiality with

which the individual conducts the review under this section.

(2) The Secretary shall take care to assure that representatives

of historically and predominantly Black colleges, Hispanic

institutions, Tribal Colleges and Universities, and institutions

with substantial numbers of Hispanics, Native Americans, Asian

Americans, and Native American Pacific Islanders (including Native

Hawaiians) are included as readers.

(3) All readers selected by the Secretary shall receive thorough

instruction from the Secretary regarding the evaluation process for

applications submitted under this subchapter and consistent with

the provisions of this subchapter, including -

(A) explanations and examples of the types of activities

referred to in section 1057(b) of this title that should receive

special consideration for grants awarded under part A of this

subchapter and of the types of activities referred to in section

1062 of this title that should receive special consideration for

grants awarded under part B of this subchapter;

(B) an enumeration of the factors to be used to determine the

quality of applications submitted under this subchapter; and

(C) an enumeration of the factors to be used to determine

whether a grant should be awarded for a project under this

subchapter, the amount of any such grant, and the duration of any

such grant.

(b) Recommendations of panel

In awarding grants under this subchapter, the Secretary shall

take into consideration the recommendations of the panel made under

subsection (a) of this section.

(c) Notification

Not later than June 30 of each year, the Secretary shall notify

each institution of higher education making an application under

this subchapter of -

(1) the scores given the applicant by the panel pursuant to

this section;

(2) the recommendations of the panel with respect to such

application; and

(3) the reasons for the decision of the Secretary in awarding

or refusing to award a grant under this subchapter, and any

modifications, if any, in the recommendations of the panel made

by the Secretary.

(d) Exclusion

The provisions of this section shall not apply to applications

submitted under part D of this subchapter.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 393, formerly Sec. 353, as added

Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat.

1305; renumbered Sec. 393 and amended Pub. L. 105-244, title III,

Sec. 301(a)(2), 308(e), Oct. 7, 1998, 112 Stat. 1636, 1649.)

-COD-

CODIFICATION

Section was formerly classified to section 1068 of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

AMENDMENTS

1998 - Subsec. (a)(2). Pub. L. 105-244, Sec. 308(e)(1),

substituted ''Tribal Colleges and Universities'' for ''Native

American colleges and universities''.

Subsec. (d). Pub. L. 105-244, Sec. 308(e)(2), added subsec. (d).

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. 1068c 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part F - General Provisions

-HEAD-

Sec. 1068c. Cooperative arrangements

-STATUTE-

(a) General authority

The Secretary may make grants to encourage cooperative

arrangements -

(1) with funds available to carry out part A of this

subchapter, between institutions eligible for assistance under

part A of this subchapter and between such institutions and

institutions not receiving assistance under this subchapter; or

(2) with funds available to carry out part B of this

subchapter, between institutions eligible for assistance under

part B of this subchapter and institutions not receiving

assistance under this subchapter;

for the activities described in section 1057(b) of this title or

section 1062 of this title, as the case may be, so that the

resources of the cooperating institutions might be combined and

shared to achieve the purposes of such parts and avoid costly

duplicative efforts and to enhance the development of part A and

part B eligible institutions.

(b) Priority

The Secretary shall give priority to grants for the purposes

described under subsection (a) of this section whenever the

Secretary determines that the cooperative arrangement is

geographically and economically sound or will benefit the applicant

institution.

(c) Duration

Grants to institutions having a cooperative arrangement may be

made under this section for a period as determined under section

1059 of this title or section 1062 of this title.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 394, formerly Sec. 354, as added

Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat.

1305; renumbered Sec. 394, Pub. L. 105-244, title III, Sec.

301(a)(2), Oct. 7, 1998, 112 Stat. 1636.)

-COD-

CODIFICATION

Section was formerly classified to section 1069 of this title

prior to renumbering by Pub. L. 105-244.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1059 of this title.

-CITE-

20 USC Sec. 1068d 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part F - General Provisions

-HEAD-

Sec. 1068d. Assistance to institutions under other programs

-STATUTE-

(a) Assistance eligibility

Each institution which the Secretary determines to be an

institution eligible under part A of this subchapter or an

institution eligible under part B of this subchapter may be

eligible for waivers in accordance with subsection (b) of this

section.

(b) Waiver applicability

(1) Subject to, and in accordance with, regulations promulgated

for the purpose of this section, in the case of any application by

an institution referred to in subsection (a) of this section for

assistance under any programs specified in paragraph (2), the

Secretary is authorized, if such application is otherwise

approvable, to waive any requirement for a non-Federal share of the

cost of the program or project, or, to the extent not inconsistent

with other law, to give, or require to be given, priority

consideration of the application in relation to applications from

other institutions.

(2) The provisions of this section shall apply to any program

authorized by part D of this subchapter or subchapter IV of this

chapter or part C of subchapter I of chapter 34 of title 42.

(c) Limitation

The Secretary shall not waive, under subsection (b) of this

section, the non-Federal share requirement for any program for

applications which, if approved, would require the expenditure of

more than 10 percent of the appropriations for the program for any

fiscal year.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 395, formerly Sec. 356, as added

Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat.

1306; amended Pub. L. 102-325, title III, Sec. 305(d), July 23,

1992, 106 Stat. 478; Pub. L. 104-208, div. A, title I, Sec. 101(e)

(title VII, Sec. 709(d)), Sept. 30, 1996, 110 Stat. 3009-233,

3009-314; renumbered Sec. 395 and amended Pub. L. 105-244, title

III, Sec. 301(a)(2), 308(f), Oct. 7, 1998, 112 Stat. 1636, 1649.)

-COD-

CODIFICATION

Section was formerly classified to section 1069b of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

AMENDMENTS

1998 - Subsec. (b)(2). Pub. L. 105-244, Sec. 308(f), substituted

''part D of this subchapter or subchapter IV of this chapter'' for

''subchapter IV, VII, or VIII of this chapter''.

1996 - Subsec. (b)(2). Pub. L. 104-208 struck out ''II,'' after

''authorized by subchapter''.

1992 - Subsec. (a). Pub. L. 102-325 substituted ''may be

eligible'' for ''shall be eligible''.

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 1992 AMENDMENT

Amendment by 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.

-CITE-

20 USC Sec. 1068e 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part F - General Provisions

-HEAD-

Sec. 1068e. Limitations

-STATUTE-

The funds appropriated under section 1069f (FOOTNOTE 1) of this

title may not be used -

(FOOTNOTE 1) See References in Text note below.

(1) for a school or department of divinity or any religious

worship or sectarian activity;

(2) for an activity that is inconsistent with a State plan for

desegregation of higher education applicable to such institution;

(3) for an activity that is inconsistent with a State plan of

higher education applicable to such institution; or

(4) for purposes other than the purposes set forth in the

approved application under which the funds were made available to

the institution.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 396, formerly Sec. 357, as added

Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat.

1307; renumbered Sec. 396, Pub. L. 105-244, title III, Sec.

301(a)(2), Oct. 7, 1998, 112 Stat. 1636.)

-REFTEXT-

REFERENCES IN TEXT

Section 1069f of this title, referred to in text, was in the

original a reference to section 360 of Pub. L. 89-329. Section 360

of Pub. L. 89-329 was renumbered section 399 of Pub. L. 89-329 by

Pub. L. 105-244, title III, Sec. 301(a)(2), Oct. 7, 1998, 112 Stat.

1636, and was transferred to section 1068h of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1068 of this title.

-CITE-

20 USC Sec. 1068f 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part F - General Provisions

-HEAD-

Sec. 1068f. Penalties

-STATUTE-

Whoever, being an officer, director, agent, or employee of, or

connected in any capacity with, any recipient of Federal financial

assistance or grant pursuant to this subchapter embezzles,

willfully misapplies, steals, or obtains by fraud any of the funds

which are the subject of such grant or assistance, shall be fined

not more than $10,000 or imprisoned for not more than 2 years, or

both.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 397, formerly Sec. 358, as added

Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat.

1307; renumbered Sec. 397, Pub. L. 105-244, title III, Sec.

301(a)(2), Oct. 7, 1998, 112 Stat. 1636.)

-COD-

CODIFICATION

Section was formerly classified to section 1069d of this title

prior to renumbering by Pub. L. 105-244.

-CITE-

20 USC Sec. 1068g 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part F - General Provisions

-HEAD-

Sec. 1068g. Continuation awards

-STATUTE-

The Secretary shall make continuation awards under this

subchapter for the second and succeeding years of a grant only

after determining that the recipient is making satisfactory

progress in carrying out the grant.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 398, as added Pub. L. 105-244,

title III, Sec. 308(g), Oct. 7, 1998, 112 Stat. 1649.)

-MISC1-

EFFECTIVE DATE

Section effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC Sec. 1068h 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER III - INSTITUTIONAL AID

Part F - General Provisions

-HEAD-

Sec. 1068h. Authorization of appropriations

-STATUTE-

(a) Authorizations

(1) Part A

(A) There are authorized to be appropriated to carry out part A

of this subchapter, $135,000,000 (other than section 1059c of

this title) for fiscal year 1999, and such sums as may be

necessary for each of the 4 succeeding fiscal years.

(B) There are authorized to be appropriated to carry out

section 1059c of this title, $10,000,000 for fiscal year 1999 and

such sums as may be necessary for each of the 4 succeeding fiscal

years.

(C) There are authorized to be appropriated to carry out

section 1059d of this title, $5,000,000 for fiscal year 1999 and

such sums as may be necessary for each of the 4 succeeding fiscal

years.

(2) Part B

(A) There are authorized to be appropriated to carry out part B

of this subchapter (other than section 1063b of this title),

$135,000,000 for fiscal year 1999, and such sums as may be

necessary for each of the 4 succeeding fiscal years.

(B) There are authorized to be appropriated to carry out

section 1063b of this title, $35,000,000 for fiscal year 1999,

and such sums as may be necessary for each of the 4 succeeding

fiscal years.

(3) Part C

There are authorized to be appropriated to carry out part C of

this subchapter, $10,000,000 for fiscal year 1999, and such sums

as may be necessary for each of the 4 succeeding fiscal years.

(4) Part D

(A) There are authorized to be appropriated to carry out part D

of this subchapter (other than section 1066d(7) of this title,

but including section 1066f of this title), $110,000 for fiscal

year 1999, and such sums as may be necessary for each of the 4

succeeding fiscal years.

(B) There are authorized to be appropriated to carry out

section 1066d(7) of this title, such sums as may be necessary for

fiscal year 1999 and each of the 4 succeeding fiscal years.

(5) Part E

There are authorized to be appropriated to carry out part E of

this subchapter, $10,000,000 for fiscal year 1999, and such sums

as may be necessary for each of the 4 succeeding fiscal years.

(b) Use of multiple year awards

In the event of a multiple year award to any institution under

this subchapter, the Secretary shall make funds available for such

award from funds appropriated for this subchapter for the fiscal

year in which such funds are to be used by the recipient.

-SOURCE-

(Pub. L. 89-329, title III, Sec. 399, formerly Sec. 360, as added

Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat.

1307; amended Pub. L. 102-325, title III, Sec. 305(e)-(g), July 23,

1992, 106 Stat. 479; renumbered Sec. 399, and amended Pub. L.

105-244, title III, Sec. 301(a)(2), 308(h), Oct. 7, 1998, 112 Stat.

1636, 1649.)

-COD-

CODIFICATION

Section was formerly classified to section 1069f of this title

prior to renumbering by Pub. L. 105-244.

-MISC3-

PRIOR PROVISIONS

A prior section 1069, Pub. L. 89-329, title III, Sec. 354, as

added Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100

Stat. 1305, which related to cooperative arrangements, was

renumbered section 394 of Pub. L. 89-329 by Pub. L. 105-244, title

III, Sec. 301(a)(2), Oct. 7, 1998, 112 Stat. 1636, and transferred

to section 1068c of this title.

Another prior section 1069, Pub. L. 89-329, title III, Sec. 344,

as added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94

Stat. 1399, provided for a program of grants to encourage

cooperative arrangements between institutions, prior to the general

amendment of this subchapter by Pub. L. 99-498.

Another prior section 1069, Pub. L. 89-329, title IV, Sec. 409,

Nov. 8, 1965, 79 Stat. 1236, related to definition of academic

year, prior to the general amendment of part A of subchapter IV of

this chapter by Pub. L. 92-318, title I, Sec. 131(b)(1), June 23,

1972, 86 Stat. 247.

A prior section 1069a, Pub. L. 89-329, title III, Sec. 355, as

added Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100

Stat. 1306; amended Pub. L. 100-50, Sec. 2(a)(16), (17), June 3,

1987, 101 Stat. 336, related to special payments rules, prior to

repeal by Pub. L. 102-325, Sec. 2, title III, Sec. 305(c), July 23,

1992, 106 Stat. 458, 478, effective Oct. 1, 1992.

Another prior section 1069a, Pub. L. 89-329, title III, Sec. 345,

as added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94

Stat. 1399, related to assistance to institutions under other

programs, prior to the general amendment of this subchapter by Pub.

L. 99-498.

A prior section 1069b, Pub. L. 89-329, title III, Sec. 356, as

added Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100

Stat. 1306, and amended, which related to assistance to

institutions under other programs, was renumbered section 395 of

Pub. L. 89-329 by Pub. L. 105-244, title III, Sec. 301(a)(2), Oct.

7, 1998, 112 Stat. 1636, and transferred to section 1068d of this

title.

Another prior section 1069b, Pub. L. 89-329, title III, Sec. 346,

as added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94

Stat. 1400, limited activities for which funds appropriated to

carry out this subchapter could be expended, prior to the general

amendment of this subchapter by Pub. L. 99-498.

A prior section 1069c, Pub. L. 89-329, title III, Sec. 357, as

added Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100

Stat. 1307, which related to limitations on use of funds, was

renumbered section 396 of Pub. L. 89-329 by Pub. L. 105-244, title

III, Sec. 301(a)(2), Oct. 7, 1998, 112 Stat. 1636, and transferred

to section 1068e of this title.

Another prior section 1069c, Pub. L. 89-329, title III, Sec. 347,

as added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94

Stat. 1400, and Pub. L. 98-95, Sec. 3, Sept. 26, 1983, 97 Stat.

711; Pub. L. 98-312, Sec. 1, June 12, 1984, 98 Stat. 233,

authorized appropriations to carry out parts A to C of this

subchapter, prior to the general amendment of this subchapter by

Pub. L. 99-498.

A prior section 1069d, Pub. L. 89-329, title III, Sec. 358, as

added Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100

Stat. 1307, which related to penalties, was renumbered section 397

of Pub. L. 89-329 by Pub. L. 105-244, title III, Sec. 301(a)(2),

Oct. 7, 1998, 112 Stat. 1636, and transferred to section 1068f of

this title.

A prior section 1069e, Pub. L. 89-329, title III, Sec. 359, as

added Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100

Stat. 1307, required application for challenge grant, prior to

repeal by Pub. L. 102-325, Sec. 2, title III, Sec. 305(c), July 23,

1992, 106 Stat. 458, 478, effective Oct. 1, 1992.

A prior section 1069f, Pub. L. 89-329, title III, Sec. 360, as

added Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100

Stat. 1307, and amended, which authorized appropriations, was

renumbered section 399 of Pub. L. 89-329 by Pub. L. 105-244, title

III, Sec. 301(a)(2), Oct. 7, 1998, 112 Stat. 1636, and transferred

to this section.

AMENDMENTS

1998 - Subsec. (a)(1)(A). Pub. L. 105-244, Sec. 308(h)(1)(A),

substituted ''1999'' for ''1993''.

Subsec. (a)(1)(B). Pub. L. 105-244, Sec. 308(h)(1)(B),

redesignated cl. (i) as entire subpar., substituted ''$10,000,000

for fiscal year 1999'' for ''$45,000,000 for fiscal year 1993'',

and struck out cl. (ii) which read as follows: ''No funds are

authorized to be appropriated pursuant to clause (i) for any fiscal

year unless the amount appropriated pursuant to paragraph (1)(A)

for such fiscal year equals or exceeds $80,000,000.''

Subsec. (a)(1)(C). Pub. L. 105-244, Sec. 308(h)(1)(C), added

subpar. (C).

Subsec. (a)(2)(A). Pub. L. 105-244, Sec. 308(h)(2)(A),

substituted ''1999'' for ''1993''.

Subsec. (a)(2)(B). Pub. L. 105-244, Sec. 308(h)(2)(B),

substituted ''$35,000,000 for fiscal year 1999'' for ''$20,000,000

for fiscal year 1993''.

Subsec. (a)(3). Pub. L. 105-244, Sec. 308(h)(3), substituted

''$10,000,000 for fiscal year 1999'' for ''$50,000,000 for fiscal

year 1993''.

Subsec. (a)(4), (5). Pub. L. 105-244, Sec. 308(h)(4), added pars.

(4) and (5).

Subsec. (c). Pub. L. 105-244, Sec. 308(h)(5), struck out heading

and text of subsec. (c). Text read as follows: ''If the amount

appropriated under subsection (a)(1) of this section for part A of

this subchapter for any fiscal year beginning after September 30,

1986, equals or exceeds the amount appropriated for such part for

fiscal year 1986, the Secretary shall, for such fiscal year -

''(1) allocate 25 percent of the excess (above the amount

appropriated for part A of this subchapter for fiscal year 1986)

among eligible institutions at which at least 60 percent of the

students are African Americans, Hispanic Americans, Native

Americans, Asian Americans, Native Hawaiians, or Pacific

Islanders, or any combination thereof; and

''(2) allocate 75 percent of such excess among other eligible

institutions.''

Subsec. (d). Pub. L. 105-244, Sec. 308(h)(5), struck out heading

and text of subsec. (d). Text read as follows: ''In any fiscal year

in which the sums appropriated for part A of this subchapter are

insufficient to make the reservations required by subsection (c) of

this section, the Secretary shall ratably reduce the amount of the

reservation.''

Subsec. (e). Pub. L. 105-244, Sec. 308(h)(5), struck out heading

and text of subsec. (e). Text read as follows: ''In any fiscal year

beginning after September 30, 1992, the Secretary shall award at

least 25 percent of the amount appropriated pursuant to the

authority of paragraph (3) of subsection (a) of this section in

each fiscal year to historically black colleges and universities

that meet the requirements of part C of this subchapter, unless

there are an insufficient number of quality applications or an

insufficient number of applications due to the provisions in

subsection (b)(2)(C) or subsection (b)(4)(B) of section 1065 of

this title.''

1992 - Subsec. (a). Pub. L. 102-325, Sec. 305(e), amended subsec.

(a) generally, substituting present provisions for provisions

authorizing appropriations for fiscal year 1987 and the four

succeeding fiscal years.

Subsec. (c). Pub. L. 102-325, Sec. 305(f), substituted ''1986,

the Secretary shall, for such fiscal year - '' for ''1986 - '' in

introductory provisions, added pars. (1) and (2), and struck out

former pars. (1) and (2) which read as follows:

''(1) the Secretary shall, for such fiscal year, make available

for use for the purposes of part A of this subchapter to

institutions that are junior or community colleges not less than

$51,400,000; and

''(2) the Secretary shall, for such fiscal year -

''(A) allocate 25 percent of the excess (above the amount

appropriated for part A of this subchapter for fiscal year 1986)

among eligible institutions with the highest percentages of

students who are Black Americans, Hispanic Americans, Native

Americans, Asian Americans, Native Hawaiians, or Pacific

Islanders, or any combination thereof; and

''(B) allocate 75 percent of such excess among other eligible

institutions.''

Subsec. (e). Pub. L. 102-325, Sec. 305(g), added subsec. (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.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1057, 1062, 1063, 1065,

1068e of this title.

-CITE-

20 USC SUBCHAPTER IV - STUDENT ASSISTANCE 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

.

-HEAD-

SUBCHAPTER IV - STUDENT ASSISTANCE

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1001, 1002, 1003,

1011c, 1015, 1018, 1018a, 1018b, 1028, 1058, 1068, 1068d, 1101a,

1103, 1103d, 6103, 6674 of this title; title 8 sections 1255a,

1613; title 10 sections 1598, 2410j; title 15 section 1603; title

22 section 2462; title 26 sections 25A, 529; title 29 sections

2842, 2864; title 31 section 3716; title 38 section 3698; title 42

sections 653, 3796d-6, 7274e, 12604; title 48 section 1905; title

50 App. section 462.

-CITE-

20 USC Part A - Grants to Students in Attendance at

Institutions of Higher Education 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

.

-HEAD-

Part A - Grants to Students in Attendance at Institutions of Higher

Education

-COD-

CODIFICATION

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

comprising this part, was originally enacted by Pub. L. 89-329,

title IV, Nov. 8, 1965, 79 Stat. 1232, and amended by Pub. L.

92-318, June 23, 1972, 86 Stat. 235; Pub. L. 93-380, Aug. 21, 1974,

88 Stat. 484; Pub. L. 94-328, June 30, 1976, 90 Stat. 727; Pub. L.

94-482, Oct. 12, 1976, 90 Stat. 2081; Pub. L. 95-43, June 15, 1977,

91 Stat. 213; Pub. L. 95-336, Aug. 4, 1978, 92 Stat. 451; Pub. L.

95-566, Nov. 1, 1978, 92 Stat. 2402; Pub. L. 96-49, Aug. 13, 1979,

93 Stat. 351; Pub. L. 96-374, Oct. 3, 1980, 94 Stat. 1367; Pub. L.

97-300, Oct. 13, 1982, 96 Stat. 1322; Pub. L. 97-301, Oct. 13,

1982, 96 Stat. 1400; Pub. L. 98-558, Oct. 30, 1984, 98 Stat. 2878;

Pub. L. 99-145, Nov. 8, 1985, 99 Stat. 583. Such part is shown

herein, however, as having been added by Pub. L. 99-498, title IV,

Sec. 401(a), Oct. 17, 1986, 100 Stat. 1308, without reference to

such intervening amendments because of the extensive revision of

part A by Pub. L. 99-498.

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in section 1090 of this title; title 31

section 6703; title 42 section 12604.

-CITE-

20 USC Sec. 1070 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

-HEAD-

Sec. 1070. Statement of purpose; program authorization

-STATUTE-

(a) Purpose

It is the purpose of this part, to assist in making available the

benefits of postsecondary education to eligible students (defined

in accordance with section 1091 of this title) in institutions of

higher education by -

(1) providing Federal Pell Grants to all eligible students;

(2) providing supplemental educational opportunity grants to

those students who demonstrate financial need;

(3) providing for payments to the States to assist them in

making financial aid available to such students;

(4) providing for special programs and projects designed (A) to

identify and encourage qualified youths with financial or

cultural need with a potential for postsecondary education, (B)

to prepare students from low-income families for postsecondary

education, and (C) to provide remedial (including remedial

language study) and other services to students; and

(5) providing assistance to institutions of higher education.

(b) Secretary required to carry out purposes

The Secretary shall, in accordance with subparts 1 through 8 of

this part, carry out programs to achieve the purposes of this part.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 400, formerly Sec. 401, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1308; renumbered Sec. 400, Pub. L. 102-325, title IV, Sec.

402(a)(3), July 23, 1992, 106 Stat. 482; amended Pub. L. 105-244,

title IV, Sec. 401(g)(1), Oct. 7, 1998, 112 Stat. 1652.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070, Pub. L. 89-329, title IV, Sec. 401, as

added and amended Pub. L. 92-318, title I, Sec. 131(b)(1), title X,

Sec. 1001(c)(1), (2), June 23, 1972, 86 Stat. 247, 381; Pub. L.

94-482, title I, Sec. 125, Oct. 12, 1976, 90 Stat. 2096; Pub. L.

96-374, title IV, Sec. 401, title XIII, Sec. 1391(a)(1), Oct. 3,

1980, 94 Stat. 1401, 1503, stated purpose of program of grants to

students in attendance at institutions of higher education, prior

to the general revision of this part by Pub. L. 99-498.

AMENDMENTS

1998 - Subsec. (a)(1). Pub. L. 105-244 substituted ''Federal Pell

Grants'' for ''basic educational opportunity grants''.

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.

HIGHER EDUCATION RELIEF OPPORTUNITIES FOR STUDENTS

Pub. L. 107-122, Jan. 15, 2002, 115 Stat. 2386, provided that:

''SECTION 1. SHORT TITLE.

''This Act may be cited as the 'Higher Education Relief

Opportunities for Students Act of 2001'.

''SEC. 2. WAIVER AUTHORITY FOR RESPONSE TO NATIONAL EMERGENCY.

''(a) Waivers and Modifications. -

''(1) In general. - Notwithstanding any other provision of law,

unless enacted with specific reference to this section, the

Secretary of Education (referred to in this Act as the

'Secretary') may waive or modify any statutory or regulatory

provision applicable to the student financial aid programs under

title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et

seq.) as the Secretary deems necessary in connection with the

national emergency to provide the waivers or modifications

authorized by paragraph (2).

''(2) Actions authorized. - The Secretary is authorized to

waive or modify any provision described in paragraph (1) as may

be necessary to ensure that -

''(A) borrowers of Federal student loans who are affected

individuals are not placed in a worse position financially in

relation to those loans because of their status as affected

individuals;

''(B) administrative requirements placed on affected

individuals who are borrowers of Federal student loans are

minimized, to the extent possible without impairing the

integrity of the student loan programs, to ease the burden on

such borrowers and avoid inadvertent, technical violations or

defaults;

''(C) the calculation of 'annual adjusted family income' and

'available income', as used in the determination of need for

student financial assistance under title IV of the Higher

Education Act of 1965 (20 U.S.C. 1070 et seq.) for any such

affected individual (and the determination of such need for his

or her spouse and dependents, if applicable), may be modified

to mean the sums received in the first calendar year of the

award year for which such determination is made, in order to

reflect more accurately the financial condition of such

affected individual and his or her family; and

''(D) institutions of higher education, eligible lenders,

guaranty agencies, and other entities participating in the

student assistance programs under title IV of the Higher

Education Act of 1965 (20 U.S.C. 1070 et seq.) that are located

in, or whose operations are directly affected by, areas that

are declared disaster areas by any Federal, State, or local

official in connection with the national emergency may be

granted temporary relief from requirements that are rendered

infeasible or unreasonable by the national emergency, including

due diligence requirements and reporting deadlines.

''(b) Notice of Waivers or Modifications. -

''(1) In general. - Notwithstanding section 437 of the General

Education Provisions Act (20 U.S.C. 1232) and section 553 of

title 5, United States Code, the Secretary shall, by notice in

the Federal Register, publish the waivers or modifications of

statutory and regulatory provisions the Secretary deems necessary

to achieve the purposes of this section.

''(2) Terms and conditions. - The notice under paragraph (1)

shall include the terms and conditions to be applied in lieu of

such statutory and regulatory provisions.

''(3) Case-by-case basis. - The Secretary is not required to

exercise the waiver or modification authority under this section

on a case-by-case basis.

''(c) Impact Report. - The Secretary shall, not later than 15

months after first exercising any authority to issue a waiver or

modification under subsection (a), report to the Committee on

Education and the Workforce of the House of Representatives and the

Committee on Health, Education, Labor and Pensions of the Senate on

the impact of any waivers or modifications issued pursuant to

subsection (a) on affected individuals and the programs under title

IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.),

and the basis for such determination, and include in such report

the Secretary's recommendations for changes to the statutory or

regulatory provisions that were the subject of such waiver or

modification.

''(d) No Delay in Waivers and Modifications. - Sections 482(c)

and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089(c),

1098a) shall not apply to the waivers and modifications authorized

or required by this Act.

''SEC. 3. TUITION REFUNDS OR CREDITS FOR MEMBERS OF ARMED FORCES.

''(a) Sense of Congress. - It is the sense of Congress that -

''(1) all institutions offering postsecondary education should

provide a full refund to students who are members of the Armed

Forces serving on active duty during the national emergency, for

that portion of a period of instruction such student was unable

to complete, or for which such individual did not receive

academic credit, because he or she was called up for such

service; and

''(2) if affected individuals withdraw from a course of study

as a result of such service, such institutions should make every

effort to minimize deferral of enrollment or reapplication

requirements and should provide the greatest flexibility possible

with administrative deadlines related to those applications.

''(b) Definition of Full Refund. - For purposes of this section,

a full refund includes a refund of required tuition and fees, or a

credit in a comparable amount against future tuition and fees.

''SEC. 4. USE OF PROFESSIONAL JUDGMENT.

''At the time of publishing any waivers or modifications pursuant

to section 2(b), the Secretary shall publish examples of measures

that institutions may take in the appropriate exercise of

discretion under section 479A of the Higher Education Act of 1965

(20 U.S.C. 1087tt) to adjust financial need and aid eligibility

determinations for affected individuals.

''SEC. 5. DEFINITIONS.

''In this Act:

''(1) Active duty. - The term 'active duty' has the meaning

given such term in section 101(d)(1) of title 10, United States

Code, except that such term does not include active duty for

training or attendance at a service school.

''(2) Affected individual. - The term 'affected individual'

means an individual who -

''(A) is serving on active duty during the national

emergency;

''(B) is serving on National Guard duty during the national

emergency;

''(C) resides or is employed in an area that is declared a

disaster area by any Federal, State, or local official in

connection with the national emergency; or

''(D) suffered direct economic hardship as a direct result of

the national emergency, as determined under a waiver or

modification issued under this Act.

''(3) Federal student loan. - The term 'Federal student loan'

means a loan made, insured, or guaranteed under part B, D, or E

of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071

et seq., 20 U.S.C. 1087a et seq., and 20 U.S.C. 1087aa et seq.).

''(4) National emergency. - The term 'national emergency' means

the national emergency by reason of certain terrorist attacks

declared by the President on September 14, 2001, or subsequent

national emergencies declared by the President by reason of

terrorist attacks.

''(5) Serving on active duty during the national emergency. -

The term 'serving on active duty during the national emergency'

shall include service by an individual who is -

''(A) a Reserve of an Armed Force ordered to active duty

under section 12301(a), 12301(g), 12302, 12304, or 12306 of

title 10, United States Code, or any retired member of an Armed

Force ordered to active duty under section 688 of such title,

for service in connection with such emergency or subsequent

actions or conditions, regardless of the location at which such

active duty service is performed; and

''(B) any other member of an Armed Force on active duty in

connection with such emergency or subsequent actions or

conditions who has been assigned to a duty station at a

location other than the location at which such member is

normally assigned.

''(6) Serving on national guard duty during the national

emergency. - The term 'serving on National Guard duty during the

national emergency' shall include performing training or other

duty authorized by section 502(f) of title 32, United States

Code, as a member of the National Guard, at the request of the

President, for or in support of an operation during the national

emergency.

''SEC. 6. TERMINATION OF AUTHORITY.

''The provisions of this Act shall cease to be effective on

September 30, 2003.''

COMMUNITY SCHOLARSHIP MOBILIZATION

Pub. L. 105-244, title VIII, part C, Oct. 7, 1998, 112 Stat.

1810, provided that:

''SEC. 811. SHORT TITLE.

''This part may be cited as the 'Community Scholarship

Mobilization Act'.

''SEC. 812. FINDINGS.

''Congress finds that -

''(1) the local community, when properly organized and

challenged, is one of the best sources of academic support,

motivation toward achievement, and financial resources for

aspiring postsecondary students;

''(2) local communities, working to complement or augment

services currently offered by area schools and colleges, can

raise the educational expectations and increase the rate of

postsecondary attendance of their youth by forming locally-based

organizations that provide both academic support (including

guidance, counseling, mentoring, tutoring, encouragement, and

recognition) and tangible, locally raised, effectively targeted,

publicly recognized, financial assistance;

''(3) proven methods of stimulating these community efforts can

be promoted through Federal support for the establishment of

regional, State, or community program centers to organize and

challenge community efforts to develop educational incentives and

support for local students; and

''(4) using Federal funds to leverage private contributions to

help students from low-income families attain educational and

career goals is an efficient and effective investment of scarce

taxpayer-provided resources.

''SEC. 813. DEFINITIONS.

''In this part:

''(1) Regional, state, or community program center. - The term

'regional, State, or community program center' means an

organization that -

''(A) is a division or member of, responsible to, and

overseen by, a national organization; and

''(B) is staffed by professionals trained to create, develop,

and sustain local entities in towns, cities, and neighborhoods.

''(2) Local entity. - The term 'local entity' means an

organization that -

''(A) is a nonprofit organization that is described in

section 501(c)(3) of the Internal Revenue Code of 1986 (26

U.S.C. 501(c)(3)), and exempt from taxation under section

501(a) of such Code (or shall meet this criteria through

affiliation with the national organization);

''(B) is formed for the purpose of providing educational

scholarships and academic support for residents of the local

community served by such organization;

''(C) solicits broad-based community support in its academic

support and fund-raising activities;

''(D) is broadly representative of the local community in the

structures of its volunteer-operated organization and has a

board of directors that includes leaders from local

neighborhood organizations and neighborhood residents, such as

school or college personnel, parents, students, community

agency representatives, retirees, and representatives of the

business community;

''(E) awards scholarships without regard to age, sex, marital

status, race, creed, color, religion, national origin, or

disability; and

''(F) gives priority to awarding scholarships for

postsecondary education to deserving students from low-income

families in the local community.

''(3) National organization. - The term 'national organization'

means an organization that -

''(A) has the capacity to create, develop and sustain local

entities and affiliated regional, State, or community program

centers;

''(B) has the capacity to sustain newly created local

entities in towns, cities, and neighborhoods through ongoing

training support programs;

''(C) is described in section 501(c)(3) of the Internal

Revenue Code of 1986, and exempt from taxation under section

501(a) of such Code;

''(D) is a publicly supported organization within the meaning

of section 170(b)(1)(A)(iv) of such Code (26 U.S.C.

170(b)(1)(A)(iv));

''(E) ensures that each of the organization's local entities

meet the criteria described in subparagraphs (C) and (D); and

''(F) has a program for or experience in cooperating with

secondary and postsecondary institutions in carrying out the

organization's scholarship and academic support activities.

''(4) High poverty area. - The term 'high poverty area' means a

community with a higher percentage of children from low-income

families than the national average of such percentage and a lower

percentage of children pursuing postsecondary education than the

national average of such percentage.

''(5) Secretary. - The term 'Secretary' means the Secretary of

Education.

''(6) Students from low-income families. - The term 'students

from low-income families' means students determined, pursuant to

part F of title IV of the Higher Education Act of 1965 (20 U.S.C.

1087kk et seq.), to be eligible for a Federal Pell Grant under

subpart 1 of part A of title IV of such Act (20 U.S.C. 1070a).

''SEC. 814. PURPOSE; ENDOWMENT GRANT AUTHORITY.

''(a) Purpose. - It is the purpose of this part to establish and

support regional, State or community program centers to enable such

centers to foster the development of local entities in high poverty

areas that promote higher education goals for students from

low-income families by -

''(1) providing academic support, including guidance,

counseling, mentoring, tutoring, and recognition; and

''(2) providing scholarship assistance for the cost of

postsecondary education.

''(b) Endowment Grant Authority. - From the funds appropriated

pursuant to the authority of section 816, the Secretary shall award

an endowment grant, on a competitive basis, to a national

organization to enable such organization to support the

establishment or ongoing work of regional, State or community

program centers that foster the development of local entities in

high poverty areas to improve secondary school graduation rates and

postsecondary attendance through the provision of academic support

services and scholarship assistance for the cost of postsecondary

education.

''SEC. 815. GRANT AGREEMENT AND REQUIREMENTS.

''(a) In General. - The Secretary shall award one or more

endowment grants described in section 814(b) pursuant to an

agreement between the Secretary and a national organization. Such

agreement shall -

''(1) require a national organization to establish an endowment

fund in the amount of the grant, the corpus of which shall remain

intact and the interest income from which shall be used to

support the activities described in paragraphs (2) and (3);

''(2) require a national organization to use 70 percent of the

interest income from the endowment fund in any fiscal year to

support the establishment or ongoing work of regional, State or

community program centers to enable such centers to work with

local communities to establish local entities in high poverty

areas and provide ongoing technical assistance, training

workshops, and other activities to help ensure the ongoing

success of the local entities;

''(3) require a national organization to use 30 percent of the

interest income from the endowment fund in any fiscal year to

provide scholarships for postsecondary education to students from

low-income families, which scholarships shall be matched on a

dollar-for-dollar basis from funds raised by the local entities;

''(4) require that at least 50 percent of all the interest

income from the endowment (fund) be allocated to establish new

local entities or support regional, State or community program

centers in high poverty areas;

''(5) require a national organization to submit, for each

fiscal year in which such organization uses the interest from the

endowment fund, a report to the Secretary that contains -

''(A) a description of the programs and activities supported

by the interest on the endowment fund;

''(B) the audited financial statement of the national

organization for the preceding fiscal year;

''(C) a plan for the programs and activities to be supported

by the interest on the endowment fund as the Secretary may

require;

''(D) an evaluation of the programs and activities supported

by the interest on the endowment fund as the Secretary may

require; and

''(E) data indicating the number of students from low-income

families who receive scholarships from local entities, and the

amounts of such scholarships;

''(6) contain such assurances as the Secretary may require with

respect to the management and operation of the endowment fund;

and

''(7) contain an assurance that if the Secretary determines

that such organization is not in substantial compliance with the

provisions of this part, then the national organization shall pay

to the Secretary an amount equal to the corpus of the endowment

fund plus any accrued interest on such fund that is available to

the national organization on the date of such determination.

''(b) Returned Funds. - All funds returned to the Secretary

pursuant to subsection (a)(7) shall be available to the Secretary

to carry out any scholarship or grant program assisted under title

IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq. (42

U.S.C. 2751 et seq.)).

''SEC. 816. AUTHORIZATION OF APPROPRIATIONS.

''There are authorized to be appropriated to carry out this part

$10,000,000 for fiscal year 2000.''

COMMUNITY SCHOOL PARTNERSHIPS

Pub. L. 103-382, title V, part B, Oct. 20, 1994, 108 Stat. 4045,

which provided for grants to establish community centers giving

academic support and postsecondary scholarships to poor students,

was repealed by Pub. L. 105-277, div. A, Sec. 101(f) (title VIII,

Sec. 301(a)), Oct. 21, 1998, 112 Stat. 2681-337, 2681-410.

STUDY OF FEDERAL BENEFIT COORDINATION

Section 1405 of Pub. L. 102-325 directed Secretary of Education

to conduct a study to evaluate the coordination of Federal student

financial assistance programs under title IV of the Higher

Education Act of 1965 (20 U.S.C. 1070 et seq.; 42 U.S.C. 2751 et

seq.) with other programs funded in whole or in part with Federal

funds, with Secretary to prepare and submit to appropriate

committees of Congress a report on the study not later than 3 years

after July 23, 1992, together with such recommendations as the

Secretary deemed appropriate, prior to repeal by Pub. L. 105-332,

Sec. 6(b)(2), Oct. 31, 1998, 112 Stat. 3128.

OLYMPIC SCHOLARSHIPS

Pub. L. 102-325, title XV, Sec. 1543, July 23, 1992, 106 Stat.

836, as amended by Pub. L. 105-244, title VIII, Sec. 836, Oct. 7,

1998, 112 Stat. 1820; Pub. L. 106-554, Sec. 1(a)(1) (title III,

Sec. 319), Dec. 21, 2000, 114 Stat. 2763, 2763A-49; Pub. L.

107-116, title III, Sec. 305(a), Jan. 10, 2002, 115 Stat. 2208,

provided that:

''(a) Scholarships Authorized. -

''(1) In general. - The Secretary of Education is authorized to

provide financial assistance to the United States Olympic

Education Center or the United States Olympic Training Center to

enable such centers to provide financial assistance to athletes

who are training at such centers and are pursuing postsecondary

education at institutions of higher education (as such term is

defined in section 481(a) of the Higher Education Act of 1965 (20

U.S.C. 1088(a))).

''(2) Award determination. - The amount of the financial

assistance provided to an athlete described in paragraph (1)

shall be determined in accordance with criteria, and in amounts,

specified in the application of the center under subsection (c).

Such assistance shall not exceed the athlete's cost of attendance

as determined under section 472 of the Higher Education Act of

1965 (20 U.S.C. 1087ll).

''(3) Information on distribution of assistance. - Each center

providing such assistance shall annually report to the Secretary

such information as the Secretary may reasonably require on the

distribution of such assistance among athletes and institutions

of higher education. The Secretary shall compile such reports

and submit them to the Committees on Education and the Workforce

and Appropriations of the House of Representatives and the

Committees on Health, Education, Labor, and Pensions and

Appropriations of the Senate.

''(b) Eligibility. - The Secretary of Education shall ensure that

financial assistance provided under this part (part E (Sec. 1543)

of Pub. L. 102-325) is available to both full-time and part-time

students who are athletes at centers described in subsection (a).

''(c) Application. - Each center desiring financial assistance

under this section shall submit an application to the Secretary of

Education at such time, in such manner and accompanied by such

information as the Secretary may reasonably require.

''(d) Authorization of Appropriations. - There are authorized to

be appropriated $5,000,000 for fiscal year 1999 and such sums as

may be necessary for each of the 4 succeeding fiscal years to carry

out this section.

''(e) Designation. - Scholarships awarded under this section

shall be known as 'B.J. Stupak Olympic Scholarships'.''

(Pub. L. 107-116, title III, Sec. 305(b), Jan. 10, 2002, 115

Stat. 2208, provided that: ''The amendments made by subsection (a)

(amending section 1543 of Pub. L. 102-325, set out above) shall

apply with respect to any funds appropriated pursuant to section

1543(d) of the Higher Education Amendments of 1992 (section 1543(d)

of Pub. L. 102-325, set out above), including funds appropriated

pursuant to that section in fiscal years 2000 and 2001, that are

available for financial assistance under section 1543 on or after

the date of enactment of this Act (Jan. 10, 2002).'')

PERSIAN GULF CONFLICT HIGHER EDUCATION ASSISTANCE

Pub. L. 102-26, Sec. 4-6, Apr. 9, 1991, 105 Stat. 125-127,

provided that:

''SEC. 4. OPERATION DESERT SHIELD/DESERT STORM WAIVER AUTHORITY.

''(a) Purpose. - It is the purpose of this section to ensure that

-

''(1) the men and women serving on active duty in connection

with Operation Desert Shield or Operation Desert Storm who are

borrowers of Stafford Loans or Perkins Loans are not placed in a

worse position financially in relation to those loans because of

such service;

''(2) the administrative requirements placed on all borrowers

of student loans made in accordance with title IV of the Act (20

U.S.C. 1070 et seq.; 42 U.S.C. 2751 et seq.) who are engaged in

such military service are minimized to the extent possible

without impairing the integrity of the student loan programs, in

order to ease the burden on such borrowers, and to avoid

inadvertent, technical defaults; and

''(3) the future eligibility of such an individual for Pell

Grants is not reduced by the amount of such assistance awarded

for a period of instruction that such individual was unable to

complete, or for which the individual did not receive academic

credit, because he or she was called up for such service.

''(b) Waiver Requirement. - Notwithstanding any other provision

of law, unless enacted with specific reference to this section, the

Secretary of Education shall waive or modify any statutory or

regulatory provision applicable to the student financial aid

programs under title IV of the Act that the Secretary deems

necessary to achieve the purposes stated in subsection (a),

including -

''(1) the length of, and eligibility requirements for, the

military deferments authorized under sections 427(a)(2)(C)(ii),

428(b)(1)(M)(ii), and 464(c)(2)(A)(ii) of the Act (20 U.S.C.

1077(a)(2)(C)(ii), 1078(b)(1)(M)(ii), 1087dd(c)(2)(A)(ii)), in

order to enable the borrower of a Stafford Loan or a Perkins Loan

who is or was serving on active duty in connection with Operation

Desert Shield or Operation Desert Storm to obtain a military

deferment, under which interest shall accrue and shall, if

otherwise payable by the Secretary, be paid by the Secretary of

Education, for the duration of such service;

''(2) administrative requirements placed on all borrowers of

student loans made in accordance with title IV of the Act who are

or were engaged in such military service;

''(3) the number of years for which individuals who are engaged

in such military service may be eligible for Pell Grants under

subpart 1 of part A of title IV of the Act (20 U.S.C. 1070a et

seq.);

''(4) the point at which the borrower of a Stafford Loan who is

or was engaged in such military service is required to resume

repayment of principal and interest on such loan after the

borrower completes a period of deferment under section

427(a)(2)(C)(ii) or 428(b)(1)(M)(ii) of the Act;

''(5) the point at which the borrower of a Stafford Loan who is

or was engaged in such military service is required to resume

repayment of principal and interest on such loan after the

borrower completes a single period of deferment under section

427(a)(2)(C)(i) or 428(b)(1)(M)(i) of the Act subsequent to such

service; and

''(6) the modification of the terms 'annual adjusted family

income' and 'available income,' as used in the determination of

need for student financial assistance under title IV of the Act

for such individual (and the determination of such need for his

or her spouse and dependents, if applicable), to mean the sums

received in the first calendar year of the award year for which

such determination is made, in order to reflect more accurately

the financial condition of such individual and his or her family.

''(c) Notice of Waiver. - Notwithstanding section 431 (now 437)

of the General Education Provisions Act (20 U.S.C. 1232) and

section 553 of title 5, United States Code, the Secretary shall, by

notice in the Federal Register, publish the waivers or

modifications of statutory and regulatory provisions the Secretary

deems necessary to achieve the purposes of this section. Such

notice shall include the terms and conditions to be applied in lieu

of such statutory and regulatory provisions. The Secretary is not

required to exercise the waiver or modification authority under

this section on a case-by-case basis.

''(d) Definitions. - For purposes of this Act (probably should be

''section'') -

''(1) Individuals 'serving on active duty in connection with

Operation Desert Shield or Operation Desert Storm' shall include

-

''(A) any Reserve of an Armed Force called to active duty

under section 672(a) (now 12301(a)), 672(g) (now 12301(g)), 673

(now 12302), 673b (now 12304), 674 (now 12306), or 688 of title

10, United States Code, for service in connection with

Operation Desert Shield or Operation Desert Storm, regardless

of the location at which such active duty service is performed;

and

''(B) for purposes of waivers of administrative requirements

under subsection (b)(2) only, any other member of an Armed

Force on active duty in connection with Operation Desert Shield

or Operation Desert Storm, who has been assigned to a duty

station at a location other than the location at which such

member is normally assigned.

''(2) The term 'active duty' has the meaning given such term in

section 101(22) of title 10, United States Code, except that such

term does not include active duty for training or attendance at a

service school.

''SEC. 5. TUITION REFUNDS OR CREDITS.

''(a) Sense of Congress. - It is the sense of the Congress that

all institutions offering postsecondary education should provide a

full refund to any member or Reserve of an Armed Force on active

duty service in connection with Operation Desert Shield or

Operation Desert Storm for that portion of a period of instruction

such individual was unable to complete, or for which such

individual did not receive academic credit, because he or she was

called up for such service. For purposes of this section, a full

refund includes a refund of required tuition and fees, or a credit

in a comparable amount against future tuition and fees.

''(b) Encouragement and Report. - The Secretary of Education

shall encourage institutions to provide such refunds or credits,

and shall report to the appropriate committees of Congress on the

actions taken in accordance with this subsection as well as

information he receives regarding any institutions that are not

providing such refunds or credits.

''SEC. 6. TERMINATION OF AUTHORITY.

''The provisions of sections 4 and 5 shall cease to be effective

on September 30, 1997.''

Pub. L. 102-25, title III, part E (Sec. 371-376), Apr. 6, 1991,

105 Stat. 93, provided that:

''SEC. 371. SHORT TITLE

''This part may be cited as the 'Persian Gulf Conflict Higher

Education Assistance Act'.

''SEC. 372. (Superseded by section 4 of Pub. L. 102-26, set out

above.)

''SEC. 373. (Superseded by section 5 of Pub. L. 102-26, set out

above.)

''SEC. 374. (Amended section 294d of Title 42, The Public Health

and Welfare.)

''SEC. 375. (Superseded by section 6 of Pub. L. 102-26, set out

above.)

''SEC. 376. COORDINATION WITH OTHER LAW

''If the Higher Education Technical Amendments of 1991 (Pub. L.

102-26, see Short Title of 1991 Amendment note set out under

section 1001 of this title) is enacted, the provisions of sections

4, 5, and 6 of that Act shall supersede sections 372, 373, and

375.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1070a of this title.

-CITE-

20 USC subpart 1 - federal pell grants 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 1 - federal pell grants

.

-HEAD-

subpart 1 - federal pell grants

-COD-

CODIFICATION

Pub. L. 105-244, title IV, Sec. 401(g)(2), Oct. 7, 1998, 112

Stat. 1652, amended subpart heading generally.

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 1061, 1070, 1070a-14,

1070b-3, 1078, 1085, 1087b, 1087c, 1087e, 1087kk, 1091, 1091b, 1096

of this title; title 25 section 1809; title 26 section 6103.

-CITE-

20 USC Sec. 1070a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 1 - federal pell grants

-HEAD-

Sec. 1070a. Federal Pell Grants: amount and determinations;

applications

-STATUTE-

(a) Program authority and method of distribution

(1) For each fiscal year through fiscal year 2004, the Secretary

shall pay to each eligible institution such sums as may be

necessary to pay to each eligible student (defined in accordance

with section 1091 of this title) for each academic year during

which that student is in attendance at an institution of higher

education, as an undergraduate, a Federal Pell Grant in the amount

for which that student is eligible, as determined pursuant to

subsection (b) of this section. Not less than 85 percent of such

sums shall be advanced to eligible institutions prior to the start

of each payment period and shall be based upon an amount requested

by the institution as needed to pay eligible students until such

time as the Secretary determines and publishes in the Federal

Register with an opportunity for comment, an alternative payment

system that provides payments to institutions in an accurate and

timely manner,, (FOOTNOTE 1) except that this sentence shall not be

construed to limit the authority of the Secretary to place an

institution on a reimbursement system of payment.

(FOOTNOTE 1) So in original.

(2) Nothing in this section shall be interpreted to prohibit the

Secretary from paying directly to students, in advance of the

beginning of the academic term, an amount for which they are

eligible, in cases where the eligible institution elects not to

participate in the disbursement system required by paragraph (1).

(3) Grants made under this subpart shall be known as ''Federal

Pell Grants''.

(b) Purpose and amount of grants

(1) The purpose of this subpart is to provide a Federal Pell

Grant that in combination with reasonable family and student

contribution and supplemented by the programs authorized under

subparts 3 and 4 of this part, will meet at least 75 percent of a

student's cost of attendance (as defined in section 1087ll of this

title), unless the institution determines that a greater amount of

assistance would better serve the purposes of section 1070

(FOOTNOTE 2) of this title.

(FOOTNOTE 2) See References in Text note below.

(2)(A) The amount of the Federal Pell Grant for a student

eligible under this part shall be -

(i) $4,500 for academic year 1999-2000;

(ii) $4,800 for academic year 2000-2001;

(iii) $5,100 for academic year 2001-2002;

(iv) $5,400 for academic year 2002-2003; and

(v) $5,800 for academic year 2003-2004,

less an amount equal to the amount determined to be the expected

family contribution with respect to that student for that year.

(B) In any case where a student attends an institution of higher

education on less than a full-time basis (including a student who

attends an institution of higher education on less than a half-time

basis) during any academic year, the amount of the Federal Pell

Grant to which that student is entitled shall be reduced in

proportion to the degree to which that student is not so attending

on a full-time basis, in accordance with a schedule of reductions

established by the Secretary for the purposes of this division,

computed in accordance with this subpart. Such schedule of

reductions shall be established by regulation and published in the

Federal Register in accordance with section 1089 of this title.

(3)(A) For any academic year for which an appropriation Act

provides a maximum basic grant in an amount in excess of $2,700,

the amount of a student's basic grant shall equal $2,700 plus -

(i) one-half of the amount by which such maximum basic grant

exceeds $2,700; plus

(ii) the lesser of -

(I) the remaining one-half of such excess; or

(II) the sum of the student's tuition and, if the student has

dependent care expenses (as described in section 1087ll(8) of

this title) or disability-related expenses (as described in

section 1087ll(9) of this title), an allowance determined by

the institution for such expenses.

(B) An institution that charged only fees in lieu of tuition as

of October 1, 1998, may include in the institution's determination

of tuition charged, fees that would normally constitute tuition.

(4) No Federal Pell Grant under this subpart shall exceed the

difference between the expected family contribution for a student

and the cost of attendance (as defined in section 1087ll of this

title) at the institution at which that student is in attendance.

If, with respect to any student, it is determined that the amount

of a Federal Pell Grant plus the amount of the expected family

contribution for that student exceeds the cost of attendance for

that year, the amount of the Federal Pell Grant shall be reduced

until the combination of expected family contribution and the

amount of the Federal Pell Grant does not exceed the cost of

attendance at such institution.

(5) No Federal Pell Grant shall be awarded to a student under

this subpart if the amount of that grant for that student as

determined under this subsection for any academic year is less than

$400, except that a student who is eligible for a Federal Pell

Grant that is equal to or greater than $200 but less than $400

shall be awarded a Federal Pell Grant of $400.

(6)(A) The Secretary may allow, on a case-by-case basis, a

student to receive 2 Pell grants during a single award year, if -

(i) the student is enrolled full-time in an associate or

baccalaureate degree program of study that is 2 years or longer

at an eligible institution that is computed in credit hours; and

(ii) the student completes course work toward completion of an

associate or baccalaureate degree that exceeds the requirements

for a full academic year as defined by the institution.

(B) The Secretary shall promulgate regulations implementing this

paragraph.

(7) Notwithstanding any other provision of this subpart, the

Secretary shall allow the amount of the Federal Pell Grant to be

exceeded for students participating in a program of study abroad

approved for credit by the institution at which the student is

enrolled when the reasonable costs of such program are greater than

the cost of attendance at the student's home institution, except

that the amount of such Federal Pell Grant in any fiscal year shall

not exceed the grant level specified in the appropriate

Appropriation Act for this subpart for such year. If the preceding

sentence applies, the financial aid administrator at the home

institution may use the cost of the study abroad program, rather

than the home institution's cost, to determine the cost of

attendance of the student.

(8) No Federal Pell Grant shall be awarded under this subpart to

any individual who is incarcerated in any Federal or State penal

institution.

(c) Period of eligibility for grants

(1) The period during which a student may receive Federal Pell

Grants shall be the period required for the completion of the first

undergraduate baccalaureate course of study being pursued by that

student at the institution at which the student is in attendance

except that any period during which the student is enrolled in a

noncredit or remedial course of study as defined in paragraph (2)

shall not be counted for the purpose of this paragraph.

(2) Nothing in this section shall exclude from eligibility

courses of study which are noncredit or remedial in nature

(including courses in English language instruction) which are

determined by the institution to be necessary to help the student

be prepared for the pursuit of a first undergraduate baccalaureate

degree or certificate or, in the case of courses in English

language instruction, to be necessary to enable the student to

utilize already existing knowledge, training, or skills. Nothing

in this section shall exclude from eligibility programs of study

abroad that are approved for credit by the home institution at

which the student is enrolled.

(3) No student is entitled to receive Pell Grant payments

concurrently from more than one institution or from the Secretary

and an institution.

(4) Notwithstanding paragraph (1), the Secretary may allow, on a

case-by-case basis, a student to receive a Federal Pell Grant if

the student -

(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 of higher education; and

(B) is enrolled or accepted for enrollment in a

postbaccalaureate program that does not lead to a graduate

degree, and in courses required by a State in order for the

student to receive a professional certification or licensing

credential that is required for employment as a teacher in an

elementary school or secondary school in that State,

except that this paragraph shall not apply to a student who is

enrolled in an institution of higher education that offers a

baccalaureate degree in education.

(d) Applications for grants

(1) The Secretary shall from time to time set dates by which

students shall file applications for Federal Pell Grants under this

subpart.

(2) Each student desiring a Federal Pell Grant for any year shall

file an application therefor containing such information and

assurances as the Secretary may deem necessary to enable the

Secretary to carry out the functions and responsibilities of this

subpart.

(e) Distribution of grants to students

Payments under this section shall be made in accordance with

regulations promulgated by the Secretary for such purpose, in such

manner as will best accomplish the purpose of this section. Any

disbursement allowed to be made by crediting the student's account

shall be limited to tuition and fees and, in the case of

institutionally owned housing, room and board. The student may

elect to have the institution provide other such goods and services

by crediting the student's account.

(f) Calculation of eligibility

(1) Each contractor processing applications for awards under this

subpart (including a central processor, if any, designated by the

Secretary) shall, in a timely manner, furnish to the student

financial aid administrator (at each institution of higher

education which a student awarded a Federal Pell Grant under this

subpart is attending), as a part of its regular output document,

the expected family contribution for each such student. Each such

student financial aid administrator shall -

(A) examine and assess the data used to calculate the expected

family contribution of the student furnished pursuant to this

subsection;

(B) recalculate the expected family contribution of the student

if there has been a change in circumstances of the student or in

the data submitted;

(C) make the award to the student in the correct amount; and

(D) after making such award report the corrected data to such

contractor and to a central processor (if any) designated by the

Secretary for a confirmation of the correct computation of amount

of the expected family contribution for each such student.

(2) Whenever a student receives an award under this subpart that,

due to recalculation errors by the institution of higher education,

is in excess of the amount which the student is entitled to receive

under this subpart, such institution of higher education shall pay

to the Secretary the amount of such excess unless such excess can

be resolved in a subsequent disbursement to the institution.

(3) Each contractor processing applications for awards under this

subpart shall for each academic year after academic year 1986-1987

prepare and submit a report to the Secretary on the correctness of

the computations of amount of the expected family contribution, and

on the accuracy of the questions on the application form under this

subpart for the previous academic year for which the contractor is

responsible. The Secretary shall transmit the report, together

with the comments and recommendations of the Secretary, to the

Committee on Appropriations and the Committee on Labor and Human

Resources of the Senate and the Committee on Appropriations and the

Committee on Education and the Workforce of the House of

Representatives.

(g) Insufficient appropriations

If, for any fiscal year, the funds appropriated for payments

under this subpart are insufficient to satisfy fully all

entitlements, as calculated under subsection (b) of this section

(but at the maximum grant level specified in such appropriation),

the Secretary shall promptly transmit a notice of such

insufficiency to each House of the Congress, and identify in such

notice the additional amount that would be required to be

appropriated to satisfy fully all entitlements (as so calculated at

such maximum grant level).

(h) Use of excess funds

(1) If, at the end of a fiscal year, the funds available for

making payments under this subpart exceed the amount necessary to

make the payments required under this subpart to eligible students

by 15 percent or less, then all of the excess funds shall remain

available for making payments under this subpart during the next

succeeding fiscal year.

(2) If, at the end of a fiscal year, the funds available for

making payments under this subpart exceed the amount necessary to

make the payments required under this subpart to eligible students

by more than 15 percent, then all of such funds shall remain

available for making such payments but payments may be made under

this paragraph only with respect to entitlements for that fiscal

year.

(i) Treatment of institutions and students under other laws

Any institution of higher education which enters into an

agreement with the Secretary to disburse to students attending that

institution the amounts those students are eligible to receive

under this subpart shall not be deemed, by virtue of such

agreement, a contractor maintaining a system of records to

accomplish a function of the Secretary. Recipients of Pell Grants

shall not be considered to be individual grantees for purposes of

subtitle D of title V of Public Law 100-690 (41 U.S.C. 701 et

seq.).

(j) Institutional ineligibility based on default rates

(1) In general

No institution of higher education shall be an eligible

institution for purposes of this subpart if such institution of

higher education is ineligible to participate in a loan program

under part B or C of this subchapter as a result of a final

default rate determination made by the Secretary under part B or

C of this subchapter after the final publication of cohort

default rates for fiscal year 1996 or a succeeding fiscal year.

(2) Sanctions subject to appeal opportunity

No institution may be subject to the terms of this subsection

unless the institution has had the opportunity to appeal the

institution's default rate determination under regulations issued

by the Secretary for the loan program authorized under part B or

C of this subchapter, as applicable. This subsection shall not

apply to an institution that was not participating in the loan

program authorized under part B or C of this subchapter on

October 7, 1998, unless the institution subsequently participates

in the loan programs.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 401, formerly Sec. 411, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1309; amended Pub. L. 100-50, Sec. 3(a), June 3, 1987, 101 Stat.

337; renumbered Sec. 401 and amended Pub. L. 102-325, title IV,

Sec. 401(a)-(h), 402(a)(3), July 23, 1992, 106 Stat. 479-482; Pub.

L. 103-208, Sec. 2(b)(1)-(5), (k)(1), Dec. 20, 1993, 107 Stat.

2458, 2485; Pub. L. 103-322, title II, Sec. 20411(a), Sept. 13,

1994, 108 Stat. 1828; Pub. L. 105-244, title IV, Sec. 401(a)-(f),

(g)(3), (4), Oct. 7, 1998, 112 Stat. 1650-1652.)

-REFTEXT-

REFERENCES IN TEXT

Section 1070 of this title, referred to in subsec. (b)(1), was in

the original a reference to section 401, meaning section 401 of the

Higher Education Act of 1965, Pub. L. 89-329. Sections 401 and 411

of that Act were renumbered as sections 400 and 401, respectively,

by Pub. L. 102-325, title IV, Sec. 402(a)(3), July 23, 1992, 106

Stat. 482, and are classified to sections 1070 and 1070a of this

title, respectively.

Subtitle D of title V of Public Law 100-690, referred to in

subsec. (i), is subtitle D (Sec. 5151-5160) of title V of Pub. L.

100-690, Nov. 18, 1988, 102 Stat. 4304, commonly known as the

Drug-Free Workplace Act of 1988, which is classified generally to

chapter 10 (Sec. 701 et seq.) of Title 41, Public Contracts. For

complete classification of this Act to the Code, see Short Title

note set out under section 701 of Title 41 and Tables.

-MISC2-

PRIOR PROVISIONS

A prior section 1070a, Pub. L. 89-329, title IV, Sec. 411, as

added Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972, 86

Stat. 248; amended Pub. L. 94-328, Sec. 2(f), June 30, 1976, 90

Stat. 727; Pub. L. 94-482, title I, Sec. 121(a), (b)(1), (c)-(i),

Oct. 12, 1976, 90 Stat. 2091-2093; Pub. L. 95-43, Sec. 1(a)(5),

June 15, 1977, 91 Stat. 213; Pub. L. 95-566, Sec. 2, Nov. 1, 1978,

92 Stat. 2402; Pub. L. 96-49, Sec. 5(a)(1), (2)(A), Aug. 13, 1979,

93 Stat. 351; Pub. L. 96-374, title IV, Sec. 402, title XIII, Sec.

1391(a)(1), Oct. 3, 1980, 94 Stat. 1401, 1503; Pub. L. 97-301, Sec.

8(a), Oct. 13, 1982, 96 Stat. 1402, related to basic educational

opportunity grants, amount and determinations, and applications,

prior to the general revision of this part by Pub. L. 99-498.

A prior section 401 of Pub. L. 89-329 was renumbered section 400

by section 402(a)(3) of Pub. L. 102-325 and is classified to

section 1070 of this title.

Another prior section 401 of Pub. L. 89-329, title IV, as added

and amended Pub. L. 92-318, title I, Sec. 131(b)(1), title X, Sec.

1001(c)(1), (2), June 23, 1972, 86 Stat. 247, 381; Pub. L. 94-482,

title I, Sec. 125, Oct. 12, 1976, 90 Stat. 2096; Pub. L. 96-374,

title IV, Sec. 401, title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94

Stat. 1401, 1503, which stated purpose of program of grants to

students in attendance at institutions of higher education, was

classified to section 1070 of this title, prior to the general

revision of this part by Pub. L. 99-498.

AMENDMENTS

1998 - Pub. L. 105-244, Sec. 401(g)(3)(A), substituted ''Federal

Pell'' for ''Basic educational opportunity'' in section catchline.

Subsec. (a)(1). Pub. L. 105-244, Sec. 401(g)(3)(C), substituted

''Federal Pell Grant'' for ''basic grant''.

Pub. L. 105-244, Sec. 401(a), substituted ''For each fiscal year

through fiscal year 2004, the Secretary shall'' for ''The Secretary

shall, during the period beginning July 1, 1972, and ending

September 30, 1998,'' and inserted ''until such time as the

Secretary determines and publishes in the Federal Register with an

opportunity for comment, an alternative payment system that

provides payments to institutions in an accurate and timely

manner,'' after ''pay eligible students''.

Subsec. (a)(3). Pub. L. 105-244, Sec. 401(g)(3)(B), substituted

''Grants made'' for ''Basic grants made''.

Subsec. (b)(1). Pub. L. 105-244, Sec. 401(g)(3)(C), substituted

''Federal Pell Grant'' for ''basic grant''.

Subsec. (b)(2)(A). Pub. L. 105-244, Sec. 401(b), amended subpar.

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

''The amount of the basic grant for a student eligible under this

part shall be -

''(i) $3,700 for academic year 1993-1994,

''(ii) $3,900 for academic year 1994-1995,

''(iii) $4,100 for academic year 1995-1996,

''(iv) $4,300 for academic year 1996-1997, and

''(v) $4,500 for academic year 1997-1998,

less an amount equal to the amount determined to be the expected

family contribution with respect to that student for that year.''

Subsec. (b)(2)(B). Pub. L. 105-244, Sec. 401(g)(3)(C),

substituted ''Federal Pell Grant'' for ''basic grant''.

Subsec. (b)(3). Pub. L. 105-244, Sec. 401(c), amended par. (3)

generally. Prior to amendment, par. (3) read as follows:

''(3)(A) For any academic year for which an appropriation Act

provides a maximum basic grant in an amount in excess of $2,400,

the amount of a student's basic grant shall equal $2,400 plus -

''(i) one-half of the amount by which such maximum basic grant

exceeds $2,400; plus

''(ii) the lesser of -

''(I) the remaining one-half of such excess; or

''(II) the sum of the student's tuition and the student's

allowance determined under subparagraph (B), if applicable.

''(B) For purposes of subparagraph (A)(ii)(II), a student's

allowance is $750 if the student has dependent care expenses (as

defined in section 1087ll(8) of this title) or disability related

expenses (as defined in section 1087ll(9) of this title).''

Subsec. (b)(4), (5). Pub. L. 105-244, Sec. 401(g)(3)(C),

substituted ''Federal Pell Grant'' for ''basic grant'' wherever

appearing.

Subsec. (b)(6). Pub. L. 105-244, Sec. 401(d), designated existing

provisions as subpar. (A), redesignated former subpars. (A) and (B)

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

Subsec. (b)(7), (8). Pub. L. 105-244, Sec. 401(g)(3)(C),

substituted ''Federal Pell Grant'' for ''basic grant'' wherever

appearing.

Subsec. (c)(1). Pub. L. 105-244, Sec. 401(g)(3)(D), substituted

''Federal Pell Grants'' for ''basic grants''.

Subsec. (c)(4). Pub. L. 105-244, Sec. 401(g)(3)(C), substituted

''Federal Pell Grant'' for ''basic grant'' in introductory

provisions.

Pub. L. 105-244, Sec. 401(e), added par. (4).

Subsec. (d)(1). Pub. L. 105-244, Sec. 401(g)(3)(D), substituted

''Federal Pell Grants'' for ''basic grants''.

Subsecs. (d)(2), (f)(1). Pub. L. 105-244, Sec. 401(g)(3)(C),

substituted ''Federal Pell Grant'' for ''basic grant''.

Subsec. (f)(3). Pub. L. 105-244, Sec. 401(g)(4), substituted

''Education and the Workforce'' for ''Education and Labor''.

Subsec. (j). Pub. L. 105-244, Sec. 401(f), added subsec. (j).

1994 - Subsec. (b)(8). Pub. L. 103-322 amended par. (8)

generally. Prior to amendment, par. (8) read as follows:

''(8)(A) No basic grant shall be awarded to an incarcerated

student under this subpart that exceeds the sum of the amount of

tuition and fees normally assessed by the institution of higher

education for the course of study such student is pursuing plus an

allowance (determined in accordance with regulations issued by the

Secretary) for books and supplies associated with such course of

study, except that no basic grant shall be awarded to any

incarcerated student serving under sentence of death or any life

sentence without eligibility for parole or release.

''(B) Basic grants under this subpart shall only be awarded to

incarcerated individuals in a State if such grants are used to

supplement and not supplant the level of postsecondary education

assistance provided by such State to incarcerated individuals in

fiscal year 1988.''

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

before period at end of second sentence '', except that this

sentence shall not be construed to limit the authority of the

Secretary to place an institution on a reimbursement system of

payment''.

Subsec. (b)(2)(B). Pub. L. 103-208, Sec. 2(k)(1), amended

directory language of Pub. L. 102-325, Sec. 401(d)(2)(A). See 1992

Amendment note below.

Subsec. (b)(6). Pub. L. 103-208, Sec. 2(b)(2)-(4), substituted

''single award year'' for ''single 12-month period'' in

introductory provisions, ''an associate or baccalaureate'' for ''a

baccalaureate'' in subpar. (A), and ''an associate or

baccalaureate'' for ''a bachelor's'' in subpar. (B).

Subsec. (i). Pub. L. 103-208, Sec. 2(b)(5), substituted

''subtitle D of title V'' for ''part D of title V''.

1992 - Subsec. (a)(1). Pub. L. 102-325, Sec. 401(a), substituted

''September 30, 1998'' for ''September 30, 1992'' and ''subsection

(b) of this section'' for ''paragraph (2)''.

Subsec. (a)(3). Pub. L. 102-325, Sec. 401(b), substituted

''Federal Pell Grants'' for ''Pell Grants''.

Subsec. (b)(1). Pub. L. 102-325, Sec. 401(c), struck out ''(A) as

determined under paragraph (2), will meet 60 percent of a student's

cost of attendance (as defined in section 1070a-6 of this title);

and (B)'' after ''basic grant that'' and substituted ''family and

student'' for ''parental or independent student'', ''subparts 3 and

4'' for ''subparts 2 and 3'', and ''will meet at least 75 percent''

for ''will meet 75 percent''.

Subsec. (b)(2)(A)(i) to (v). Pub. L. 102-325, Sec. 401(d)(1),

added cls. (i) to (v) and struck out former cls. (i) to (v) which

read as follows:

''(i) $2,300 for academic year 1987-1988,

''(ii) $2,500 for academic year 1988-1989,

''(iii) $2,700 for academic year 1989-1990,

''(iv) $2,900 for academic year 1990-1991, and

''(v) $3,100 for academic year 1991-1992,''.

Subsec. (b)(2)(B). Pub. L. 102-325, Sec. 401(d)(2)(A), as amended

by Pub. L. 103-208, Sec. 2(k)(1), inserted ''(including a student

who attends an institution of higher education on less than a

half-time basis)'' in first sentence after ''full-time basis'' the

first time appearing.

Pub. L. 102-325, Sec. 401(d)(2)(B), inserted '', computed in

accordance with this subpart'' before period at end of first

sentence.

Subsec. (b)(3). Pub. L. 102-325, Sec. 401(d)(3), amended par. (3)

generally. Prior to amendment, par. (3) read as follows: ''The

amount of a basic grant to which a student is entitled under this

subpart for any academic year shall not exceed 60 percent of the

cost of attendance (as defined in section 1070a-6 of this title) at

the institution at which the student is in attendance for that

year.''

Subsec. (b)(4). Pub. L. 102-325, Sec. 401(d)(4), substituted

''section 1087ll'' for ''section 1070a-6''.

Subsec. (b)(5). Pub. L. 102-325, Sec. 401(d)(5), substituted

''$400, except that a student who is eligible for a basic grant

that is equal to or greater than $200 but less than $400 shall be

awarded a basic grant of $400'' for ''$200''.

Subsec. (b)(6) to (8). Pub. L. 102-325, Sec. 401(d)(6), added

pars. (6) to (8) and struck out former pars. (6) and (7) which

limited or prohibited basic grants from funds appropriated for

fiscal years prior to 1992 to students attending on a less than

half-time basis.

Subsec. (c)(1). Pub. L. 102-325, Sec. 401(e)(1), substituted

''any period during which the student is enrolled in a noncredit or

remedial course of study as defined in paragraph (2) shall not be

counted for the purpose of this paragraph.'' for '' -

''(A) such period may not exceed the full-time equivalent of -

''(i) 5 academic years in the case of an undergraduate degree

or certificate program normally requiring 4 years or less;

''(ii) 6 academic years in the case of an undergraduate

degree or certificate program normally requiring more than 4

years;

''(B) any period during which the student is enrolled in a

noncredit or remedial course of study as defined in paragraph (2)

shall not be counted for the purpose of subparagraph (A); and

''(C) an institution of higher education at which the student

is in attendance may waive subparagraph (A) for undue hardship

based on -

''(i) the death of a relative of the student;

''(ii) the personal injury or illness of the student; or

''(iii) special circumstances as determined by the

institution.''

Subsec. (c)(2). Pub. L. 102-325, Sec. 401(e)(2), inserted at end

''Nothing in this section shall exclude from eligibility programs

of study abroad that are approved for credit by the home

institution at which the student is enrolled.''

Subsec. (f)(1). Pub. L. 102-325, Sec. 401(f)(1), substituted '',

as a part of its regular output document, the expected family

contribution'' for ''an estimate of the eligibility index'' in

introductory provisions and ''expected family contribution'' for

''eligibility index'' in subpars. (A), (B), and (D).

Subsec. (f)(3). Pub. L. 102-325, Sec. 401(f)(2), substituted

''expected family contribution'' for ''eligibility index''.

Subsec. (g). Pub. L. 102-325, Sec. 401(g), struck out

''Adjustments for'' before ''insufficient appropriations'' in

heading and amended text generally. Prior to amendment, text read

as follows:

''(1) If, for any fiscal year, the funds appropriated for

payments under this subpart are insufficient to satisfy fully all

entitlements, as calculated under subsection (b) of this section,

the amount paid with respect to each entitlement shall be -

''(A) the full amount for any student whose expected family

contribution is $200 or less, or

''(B) a percentage of that entitlement, as determined in

accordance with a schedule of reductions established by the

Secretary for this purpose, for any student whose expected family

contribution is more than $200.

''(2) Any schedule established by the Secretary for the purpose

of paragraph (1)(B) of this subsection shall contain a single

linear reduction formula in which the percentage reduction

increases uniformly as the entitlement decreases, and shall provide

that if an entitlement is reduced to less than $100, no payment

shall be made.''

Subsec. (i). Pub. L. 102-325, Sec. 401(h), substituted

''Treatment of institutions and students under other laws'' for

''Noncontractor status of institutions'' in heading and inserted at

end of text ''Recipients of Pell Grants shall not be considered to

be individual grantees for purposes of part D of title V of Public

Law 100-690.''

1987 - Subsec. (g)(2). Pub. L. 100-50 substituted ''paragraph

(1)(B)'' for ''paragraph (1)''.

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 1994 AMENDMENT

Section 20411(b) of Pub. L. 103-322 provided that: ''The

amendment made by this section (amending this section) shall apply

with respect to periods of enrollment beginning on or after the

date of enactment of this Act (Sept. 13, 1994).''

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by section 2(b)(1), (3)-(5), (k)(1) of Pub. L. 103-208

effective as if included in the Higher Education Amendments of

1992, Pub. L. 102-325, and amendment by section 2(b)(2) of Pub. L.

103-208 effective on and after Dec. 20, 1993, see section 5(a),

(b)(2) of Pub. L. 103-208, set out as a note under section 1051 of

this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 410 of Pub. L. 102-325 provided that: ''The changes made

in part A of title IV of the Act (20 U.S.C. 1070 et seq.) by the

amendments made by this part (part A (Sec. 401-410) of title IV of

Pub. L. 102-325, see Tables for classification) shall take effect

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

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

''(2) that the changes made in section 411 (this section),

relating to Pell Grants, shall apply to the awarding of Pell

Grants for periods of enrollment beginning on or after July 1,

1993; and

''(3) that the changes in section 413C(a)(2) (20 U.S.C.

1070b-2(a)(2)), relating to the Federal share for the

supplemental educational opportunity grant program, shall apply

to funds provided for such program for the award years beginning

on or after July 1, 1993.''

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.

Section 401(b)(3), (4) of Pub. L. 99-498 provided that:

''(3) Section 411(c) of the Act (20 U.S.C. 1070a(c)) as amended

by this section shall apply only to individuals who receive a Pell

Grant for the first time for a period of enrollment beginning on or

after July 1, 1987.

''(4) Section 411(f) of the Act (20 U.S.C. 1070a(f)) as amended

by this section shall apply to the awarding of Pell Grants for

periods of enrollment beginning on or after July 1, 1987.''

STUDY OF PELL GRANT ELIGIBILITY FOR LESS THAN HALF-TIME STUDENTS

Section 1306 of Pub. L. 99-498 directed Secretary to conduct a

study and report to Congress not later than Sept. 30, 1988, on the

number of less than half-time students who would be eligible for

Pell grants by reason of having an expected family contribution of

$0 and of $0-$200 for the appropriate academic years, prior to

repeal by Pub. L. 105-332, Sec. 6(a), Oct. 31, 1998, 112 Stat.

3127.

MAXIMUM PELL GRANTS

Provisions limiting the maximum Pell grant that a student may

receive were contained in the following appropriation acts:

Pub. L. 107-116, title III, Jan. 10, 2002, 115 Stat. 2205.

Pub. L. 106-554, Sec. 1(a)(1) (title III), Dec. 21, 2000, 114

Stat. 2763, 2763A-37.

Pub. L. 106-113, div. B, Sec. 1000(a)(4) (title III), Nov. 29,

1999, 113 Stat. 1535, 1501A-251.

Pub. L. 105-277, div. A, Sec. 101(f) (title III), Oct. 21, 1998,

112 Stat. 2681-337, 2681-369.

Pub. L. 105-78, title III, Nov. 13, 1997, 111 Stat. 1501.

Pub. L. 104-208, div. A, title I, Sec. 101(e) (title III), Sept.

30, 1996, 110 Stat. 3009-233, 3009-257.

Pub. L. 104-134, title I, Sec. 101(d) (title III), Apr. 26, 1996,

110 Stat. 1321-211, 1321-232; renumbered title I, Pub. L. 104-140,

Sec. 1(a), May 2, 1996, 110 Stat. 1327.

Pub. L. 104-99, title I, Sec. 119, Jan. 26, 1996, 110 Stat. 30,

prior to repeal by Pub. L. 104-134, title I, Sec. 101(d) (title V,

Sec. 518), Apr. 26, 1996, 110 Stat. 1321-211, 1321-248; renumbered

title I, Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110 Stat. 1327.

Pub. L. 103-333, title III, Sept. 30, 1994, 108 Stat. 2564.

Pub. L. 103-112, title III, Oct. 21, 1993, 107 Stat. 1104.

Pub. L. 102-394, title III, Oct. 6, 1992, 106 Stat. 1816.

Pub. L. 102-170, title III, Nov. 26, 1991, 105 Stat. 1131.

Pub. L. 101-517, title III, Nov. 5, 1990, 104 Stat. 2212.

Pub. L. 101-166, title III, Nov. 21, 1989, 103 Stat. 1182.

Pub. L. 100-436, title III, Sept. 20, 1988, 102 Stat. 1704.

Pub. L. 100-202, Sec. 101(h) (title III), Dec. 22, 1987, 101

Stat. 1329-256, 1329-279.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070a-25, 1090 of this

title.

-CITE-

20 USC Sec. 1070a-1 to 1070a-6 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 1 - federal pell grants

-HEAD-

Sec. 1070a-1 to 1070a-6. Repealed. Pub. L. 102-325, title IV, Sec.

401(i), July 23, 1992, 106 Stat. 482

-MISC1-

Section 1070a-1, Pub. L. 89-329, title IV, Sec. 411A, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1312; amended Pub. L. 100-50, Sec. 3(b)(1), June 3, 1987, 101 Stat.

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

related to family contribution schedule for Pell Grants and data

elements.

Section 1070a-2, Pub. L. 89-329, title IV, Sec. 411B, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1313; amended Pub. L. 100-50, Sec. 3(b)(2), (c)-(f)(1), (4), (5),

(g), June 3, 1987, 101 Stat. 337, 338; Pub. L. 102-54, Sec.

13(g)(1)(B), June 13, 1991, 105 Stat. 275, related to eligibility

determination for dependent students.

Section 1070a-3, Pub. L. 89-329, title IV, Sec. 411C, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1316; amended Pub. L. 100-50, Sec. 3(b)(3), (c)(1), (f)(2), (4),

(5), (g), (h)(2), June 3, 1987, 101 Stat. 337, 338; Pub. L.

100-369, Sec. 7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102-54,

Sec. 13(g)(1)(C), June 13, 1991, 105 Stat. 275, related to

eligibility determination for independent students with dependents

other than a spouse.

Section 1070a-4, Pub. L. 89-329, title IV, Sec. 411D, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1319; amended Pub. L. 100-50, Sec. 3(b)(4), (c)(1), (f)(3), (4),

(g), June 3, 1987, 101 Stat. 337, 338; Pub. L. 100-369, Sec. 7(c),

July 18, 1988, 102 Stat. 837; Pub. L. 102-54, Sec. 13(g)(1)(D),

June 13, 1991, 105 Stat. 275, related to eligibility determination

for single independent students or for married independent students

without other dependents.

Section 1070a-5, Pub. L. 89-329, title IV, Sec. 411E, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1322, related to regulations and updated tables.

Section 1070a-6, Pub. L. 89-329, title IV, Sec. 411F, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1323; amended Pub. L. 100-50, Sec. 3(h)(1), (i)-(m), June 3, 1987,

101 Stat. 338, 339; Pub. L. 100-369, Sec. 7(a), (c), July 18, 1988,

102 Stat. 836, 837; Pub. L. 101-610, title I, Sec. 185(1), (2),

Nov. 16, 1990, 104 Stat. 3167, related to definitions and

determinations.

-CITE-

20 USC subpart 2 - federal early outreach and student

services programs 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

.

-HEAD-

subpart 2 - federal early outreach and student services programs

-COD-

CODIFICATION

Pub. L. 102-325, title IV, Sec. 402(a)(2), (4), July 23, 1992,

106 Stat. 482, added subpart 2 and redesignated former subpart 2

comprising sections 1070b to 1070b-3 of this title as subpart 3.

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 1087kk, 1087mm, 1087oo,

1087pp, 1087qq of this title.

-CITE-

20 USC Division 1 - Federal TRIO Programs 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 1 - Federal TRIO Programs

.

-HEAD-

Division 1 - Federal TRIO Programs

-SECREF-

DIVISION REFERRED TO IN OTHER SECTIONS

This division is referred to in sections 1011b, 1070a-25, 6534 of

this title.

-CITE-

20 USC Sec. 1070a-11 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 1 - Federal TRIO Programs

-HEAD-

Sec. 1070a-11. Program authority; authorization of appropriations

-STATUTE-

(a) Grants and contracts authorized

The Secretary shall, in accordance with the provisions of this

division, carry out a program of making grants and contracts

designed to identify qualified individuals from disadvantaged

backgrounds, to prepare them for a program of postsecondary

education, to provide support services for such students who are

pursuing programs of postsecondary education, to motivate and

prepare students for doctoral programs, and to train individuals

serving or preparing for service in programs and projects so

designed.

(b) Recipients, duration, and size

(1) Recipients

For the purposes described in subsection (a) of this section,

the Secretary is authorized, without regard to section 5 of title

41, to make grants to, and contracts with, institutions of higher

education, public and private agencies and organizations,

combinations of such institutions, agencies and organizations,

and in exceptional circumstances, secondary schools, for

planning, developing, or carrying out one or more of the services

assisted under this division.

(2) Duration

Grants or contracts made under this division shall be awarded

for a period of 4 years, except that -

(A) the Secretary shall award such grants or contracts for 5

years to applicants whose peer review scores were in the

highest 10 percent of scores of all applicants receiving grants

or contracts in each program competition for the same award

year;

(B) grants made under section 1070a-17 of this title shall be

awarded for a period of 2 years; and

(C) grants under section 1070a-18 of this title shall be

awarded for a period determined by the Secretary.

(3) Minimum grants

Unless the institution or agency requests a smaller amount,

individual grants under this division shall be no less than -

(A) $170,000 for programs authorized by sections 1070a-14 and

1070a-17 of this title;

(B) $180,000 for programs authorized by sections 1070a-12 and

1070a-16 of this title; and

(C) $190,000 for programs authorized by sections 1070a-13 and

1070a-15 of this title.

(c) Procedures for awarding grants and contracts

(1) Application requirements

An eligible entity that desires to receive a grant or contract

under this division shall submit an application to the Secretary

in such manner and form, and containing such information and

assurances, as the Secretary may reasonably require.

(2) Prior experience

In making grants under this division, the Secretary shall

consider each applicant's prior experience of service delivery

under the particular program for which funds are sought. The

level of consideration given the factor of prior experience shall

not vary from the level of consideration given such factor during

fiscal years 1994 through 1997, except that grants made under

section 1070a-18 of this title shall not be given prior

experience consideration.

(3) Order of awards; program fraud

(A) Except with respect to grants made under sections 1070a-17

and 1070a-18 of this title and as provided in subparagraph (B),

the Secretary shall award grants and contracts under this

division in the order of the scores received by the application

for such grant or contract in the peer review process required

under paragraph (4) and adjusted for prior experience in

accordance with paragraph (2) of this subsection.

(B) The Secretary is not required to provide assistance to a

program otherwise eligible for assistance under this division, if

the Secretary has determined that such program has involved the

fraudulent use of funds under this division.

(4) Peer review process

(A) The Secretary shall ensure that, to the extent practicable,

members of groups underrepresented in higher education, including

African Americans, Hispanics, Native Americans, Alaska Natives,

Asian Americans, and Native American Pacific Islanders (including

Native Hawaiians), are represented as readers of applications

submitted under this division. The Secretary shall also ensure

that persons from urban and rural backgrounds are represented as

readers.

(B) The Secretary shall ensure that each application submitted

under this division is read by at least three readers who are not

employees of the Federal Government (other than as readers of

applications).

(5) Number of applications for grants and contracts

The Secretary shall not limit the number of applications

submitted by an entity under any program authorized under this

division if the additional applications describe programs serving

different populations or campuses.

(6) Coordination with other programs for disadvantaged students

The Secretary shall encourage coordination of programs assisted

under this division with other programs for disadvantaged

students operated by the sponsoring institution or agency,

regardless of the funding source of such programs. The Secretary

shall not limit an entity's eligibility to receive funds under

this division because such entity sponsors a program similar to

the program to be assisted under this division, regardless of the

funding source of such program. The Secretary shall permit the

Director of a program receiving funds under this division to

administer one or more additional programs for disadvantaged

students operated by the sponsoring institution or agency,

regardless of the funding sources of such programs.

(7) Application status

The Secretary shall inform each entity operating programs under

this division regarding the status of their application for

continued funding at least 8 months prior to the expiration of

the grant or contract. The Secretary, in the case of an entity

that is continuing to operate a successful program under this

division, shall ensure that the start-up date for a new grant or

contract for such program immediately follows the termination of

the preceding grant or contract so that no interruption of

funding occurs for such successful reapplicants. The Secretary

shall inform each entity requesting assistance under this

division for a new program regarding the status of their

application at least 8 months prior to the proposed startup date

of such program.

(d) Outreach

(1) In general

The Secretary shall conduct outreach activities to ensure that

entities eligible for assistance under this division submit

applications proposing programs that serve geographic areas and

eligible populations which have been underserved by the programs

assisted under this division.

(2) Notice

In carrying out the provisions of paragraph (1), the Secretary

shall notify the entities described in subsection (b) of this

section of the availability of assistance under this subsection

not less than 120 days prior to the deadline for submission of

applications under this division and shall consult national,

State, and regional organizations about candidates for

notification.

(3) Technical assistance

The Secretary shall provide technical training to applicants

for projects and programs authorized under this division. The

Secretary shall give priority to serving programs and projects

that serve geographic areas and eligible populations which have

been underserved by the programs assisted under this division.

Technical training activities shall include the provision of

information on authorizing legislation, goals and objectives of

the program, required activities, eligibility requirements, the

application process and application deadlines, and assistance in

the development of program proposals and the completion of

program applications. Such training shall be furnished at

conferences, seminars, and workshops to be conducted at not less

than 10 sites throughout the United States to ensure that all

areas of the United States with large concentrations of eligible

participants are served.

(4) Special rule

The Secretary may contract with eligible entities to conduct

the outreach activities described in this subsection.

(e) Documentation of status as a low-income individual

(1) Except in the case of an independent student, as defined in

section 1087vv(d) of this title, documentation of an individual's

status pursuant to subsection (g)(2) of this section shall be made

by providing the Secretary with -

(A) a signed statement from the individual's parent or legal

guardian;

(B) verification from another governmental source;

(C) a signed financial aid application; or

(D) a signed United States or Puerto Rico income tax return.

(2) In the case of an independent student, as defined in section

1087vv(d) of this title, documentation of an individual's status

pursuant to subsection (g)(2) of this section shall be made by

providing the Secretary with -

(A) a signed statement from the individual;

(B) verification from another governmental source;

(C) a signed financial aid application; or

(D) a signed United States or Puerto Rico income tax return.

(f) Authorization of appropriations

For the purpose of making grants and contracts under this

division, there are authorized to be appropriated $700,000,000 for

fiscal year 1999, and such sums as may be necessary for each of the

4 succeeding fiscal years. Of the amount appropriated under this

division, the Secretary may use no more than 1/2 of 1 percent of

such amount to obtain additional qualified readers and additional

staff to review applications, to increase the level of oversight

monitoring, to support impact studies, program assessments and

reviews, and to provide technical assistance to potential

applicants and current grantees. In expending these funds, the

Secretary shall give priority to the additional administrative

requirements provided in the Higher Education Amendments of 1992,

to outreach activities, and to obtaining additional readers. The

Secretary shall report to Congress by October 1, 1994, on the use

of these funds.

(g) Definitions

For the purpose of this division:

(1) First generation college student

The term ''first generation college student'' means -

(A) an individual both of whose parents did not complete a

baccalaureate degree; or

(B) in the case of any individual who regularly resided with

and received support from only one parent, an individual whose

only such parent did not complete a baccalaureate degree.

(2) Low-income individual

The term ''low-income individual'' means an individual from a

family whose taxable income for the preceding year did not exceed

150 percent of an amount equal to the poverty level determined by

using criteria of poverty established by the Bureau of the

Census.

(3) Veteran eligibility

No veteran shall be deemed ineligible to participate in any

program under this division by reason of such individual's age

who -

(A) served on active duty for a period of more than 180 days,

any part of which occurred after January 31, 1955, and was

discharged or released therefrom under conditions other than

dishonorable; or

(B) served on active duty after January 31, 1955, and was

discharged or released therefrom because of a service connected

disability.

(4) Waiver

The Secretary may waive the service requirements in

subparagraph (A) or (B) of paragraph (3) if the Secretary

determines the application of the service requirements to a

veteran will defeat the purpose of a program under this division.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 402A, as added Pub. L. 102-325,

title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat. 482; amended

Pub. L. 103-208, Sec. 2(b)(6)-(9), Dec. 20, 1993, 107 Stat. 2458;

Pub. L. 105-244, title I, Sec. 102(b)(1), title IV, Sec. 402(a),

Oct. 7, 1998, 112 Stat. 1622, 1652.)

-REFTEXT-

REFERENCES IN TEXT

The Higher Education Amendments of 1992, referred to in subsec.

(f), 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-

REFERENCES TO SUBPART 2, 3, OR 4 OF THIS PART DEEMED TO REFER TO

SUBPART 3, 4, OR 2 OF THIS PART

Section 402(b) of Pub. L. 102-325 provided that: ''Reference in

any provision of law (other than the Act (20 U.S.C. 1001 et seq.))

to subpart 2, 3, or 4 of part A of title IV of the Act shall, after

the date of enactment of this Act (July 23, 1992), be deemed to

refer to subpart 3 (20 U.S.C. 1070b et seq.), 4 (20 U.S.C. 1070c et

seq.), or 2 (20 U.S.C. 1070a-11 et seq.) of such part,

respectively.''

AMENDMENTS

1998 - Subsec. (b)(2)(C). Pub. L. 105-244, Sec. 402(a)(1), added

subpar. (C).

Subsec. (b)(3). Pub. L. 105-244, Sec. 402(a)(2), amended heading

and text of par. (3) generally. Prior to amendment, text read as

follows: ''In any year in which the appropriations authorized under

this division exceed the prior year appropriation as adjusted for

inflation, the Secretary shall use 80 percent of the amount

appropriated above the current services level to bring each award

up to the minimum grant level or the amount requested by the

institution or agency, whichever is less. The minimum grant level

(A) for programs authorized under section 1070a-14 or 1070a-17 of

this title, shall not be less than $170,000 for fiscal year 1993;

(B) for programs authorized under section 1070a-12 or 1070a-16 of

this title shall not be less than $180,000 for fiscal year 1994;

and (C) for programs authorized under section 1070a-13 or 1070a-15

of this title shall not be less than $190,000 for fiscal year

1995.''

Subsec. (c). Pub. L. 105-244, Sec. 402(a)(3), amended subsec. (c)

generally, revising and restating former pars. (1) to (6), relating

to procedures for awarding grants and contracts, as pars. (1) to

(7).

Subsec. (c)(2). Pub. L. 105-244, Sec. 102(b)(1), substituted

''section 1011g'' for ''section 1145d-1''.

Subsec. (f). Pub. L. 105-244, Sec. 402(a)(4), substituted

''$700,000,000 for fiscal year 1999'' for ''$650,000,000 for fiscal

year 1993''.

Subsec. (g)(4). Pub. L. 105-244, Sec. 402(a)(5), added par. (4).

1993 - Subsec. (b)(2). Pub. L. 103-208, Sec. 2(b)(6), added par.

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

or contracts made under this division shall be awarded for a period

of 4 years, except that the Secretary shall award such grants or

contracts for 5 years to applicants whose peer review scores were

in the highest 10 percent of scores of all applicants receiving

grants or contracts in each program competition for the same award

year.''

Subsec. (c)(1). Pub. L. 103-208, Sec. 2(b)(7), inserted before

period at end of second sentence '', except that in the case of the

programs authorized in sections 1070a-15 and 1070a-17 of this

title, the level of consideration given to prior experience shall

be the same as the level of consideration given this factor in the

other programs authorized in this division''.

Subsec. (c)(2)(A). Pub. L. 103-208, Sec. 2(b)(8), inserted ''with

respect to grants made under section 1070a-17 of this title, and''

after ''Except''.

Subsec. (e). Pub. L. 103-208, Sec. 2(b)(9), amended subsec. (e)

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

''Documentation of an individual's status pursuant to subsection

(g)(2) of this section shall be made -

''(1) in the case of an individual who is eighteen years of age

or younger or a dependent student by providing the Secretary with

a signed statement from the parent or legal guardian,

verification from another governmental source, a signed financial

aid application, or a signed United States or Puerto Rican income

tax return; and

''(2) in the case of an individual who is age 18 or older or

who is an independent student, by providing the Secretary with a

signed statement from the individual, verification from another

governmental source, a signed financial aid form, or a signed

United States or Puerto Rican income tax return.''

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 section 2(b)(6), (8), (9) of Pub. L. 103-208

effective as if included in the Higher Education Amendments of

1992, Pub. L. 102-325, except as otherwise provided, and amendment

by section 2(b)(7) of Pub. L. 103-208 effective on and after Dec.

20, 1993, see section 5(a), (b)(2) of Pub. L. 103-208 set out as a

note under section 1051 of this title.

ADVANCED PLACEMENT FEE PAYMENT PROGRAM

Pub. L. 105-244, title VIII, Sec. 810, Oct. 7, 1998, 112 Stat.

1808, which authorized grants to States to enable States to

reimburse low-income individuals to cover part or all of the cost

of advanced placement test fees, required dissemination of

information regarding availability of payments, set forth

requirements for approval of applications and funding rules,

authorized regulations, required annual report, defined terms, and

authorized appropriations, was repealed by Pub. L. 107-110, title

X, Sec. 1011(2), Jan. 8, 2002, 115 Stat. 1986.

Similar provisions were contained in Pub. L. 102-325, title XV,

Sec. 1545, July 23, 1992, 106 Stat. 837, which was repealed by Pub.

L. 107-110, title X, Sec. 1011(1), Jan. 8, 2002, 115 Stat. 1986.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070a-15, 1070d-2 of this

title.

-CITE-

20 USC Sec. 1070a-12 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 1 - Federal TRIO Programs

-HEAD-

Sec. 1070a-12. Talent search

-STATUTE-

(a) Program authority

The Secretary shall carry out a program to be known as talent

search which shall be designed -

(1) to identify qualified youths with potential for education

at the postsecondary level and to encourage such youths to

complete secondary school and to undertake a program of

postsecondary education;

(2) to publicize the availability of student financial

assistance available to persons who pursue a program of

postsecondary education; and

(3) to encourage persons who have not completed programs of

education at the secondary or postsecondary level, but who have

the ability to complete such programs, to reenter such programs.

(b) Permissible services

Any talent search project assisted under this division may

provide services such as -

(1) academic advice and assistance in secondary school and

college course selection;

(2) assistance in completing college admission and financial

aid applications;

(3) assistance in preparing for college entrance examinations;

(4) guidance on and assistance in secondary school reentry,

entry to general educational development (GED) programs, other

alternative education programs for secondary school dropouts, or

postsecondary education;

(5) personal and career counseling, or activities designed to

acquaint individuals from disadvantaged backgrounds with careers

in which the individuals are particularly underrepresented;

(6) tutorial services;

(7) exposure to college campuses as well as cultural events,

academic programs and other sites or activities not usually

available to disadvantaged youth;

(8) workshops and counseling for families of students served;

(9) mentoring programs involving elementary or secondary school

teachers or counselors, faculty members at institutions of higher

education, students, or any combination of such persons; and

(10) programs and activities as described in paragraphs (1)

through (9) which are specially designed for students of limited

English proficiency.

(c) Requirements for approval of applications

In approving applications for talent search projects under this

division for any fiscal year the Secretary shall -

(1) require an assurance that not less than two-thirds of the

individuals participating in the project proposed to be carried

out under any application be low-income individuals who are first

generation college students;

(2) require that such participants be persons who either have

completed 5 years of elementary education or are at least 11

years of age but not more than 27 years of age, unless the

imposition of any such limitation with respect to any person

would defeat the purposes of this section or the purposes of

section 1070a-16 of this title;

(3) require an assurance that individuals participating in the

project proposed in the application do not have access to

services from another project funded under this section or under

section 1070a-16 of this title; and

(4) require an assurance that the project will be located in a

setting accessible to the persons proposed to be served by the

project.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 402B, as added Pub. L. 102-325,

title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat. 486; amended

Pub. L. 105-244, title IV, Sec. 402(b), Oct. 7, 1998, 112 Stat.

1654.)

-MISC1-

AMENDMENTS

1998 - Subsec. (b)(4). Pub. L. 105-244, Sec. 402(b)(1), added

par. (4) and struck out former par. (4) which read as follows:

''guidance on secondary school reentry or entry to general

educational development (GED) programs or other alternative

education programs for secondary school dropouts;''.

Subsec. (b)(5). Pub. L. 105-244, Sec. 402(b)(2), inserted before

semicolon '', or activities designed to acquaint individuals from

disadvantaged backgrounds with careers in which the individuals are

particularly underrepresented''.

Subsec. (b)(8). Pub. L. 105-244, Sec. 402(b)(3), substituted

''families'' for ''parents''.

Subsec. (b)(9). Pub. L. 105-244, Sec. 402(b)(4), inserted ''or

counselors'' after ''teachers''.

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 sections 1070a-11, 1070a-16 of

this title.

-CITE-

20 USC Sec. 1070a-13 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 1 - Federal TRIO Programs

-HEAD-

Sec. 1070a-13. Upward bound

-STATUTE-

(a) Program authority

The Secretary shall carry out a program to be known as upward

bound which shall be designed to generate skills and motivation

necessary for success in education beyond secondary school.

(b) Permissible services

Any upward bound project assisted under this division may provide

services such as -

(1) instruction in reading, writing, study skills, mathematics,

and other subjects necessary for success beyond secondary school;

(2) counseling and workshops;

(3) academic advice and assistance in secondary school course

selection;

(4) tutorial services;

(5) exposure to cultural events, academic programs, and other

activities not usually available to disadvantaged youth;

(6) activities designed to acquaint youths participating in the

project with the range of career options available to them;

(7) instruction designed to prepare youths participating in the

project for careers in which persons from disadvantaged

backgrounds are particularly underrepresented;

(8) on-campus residential programs;

(9) mentoring programs involving elementary or secondary school

teachers or counselors, faculty members at institutions of higher

education, students, or any combination of such persons;

(10) work-study positions where youth participating in the

project are exposed to careers requiring a postsecondary degree;

(11) special services to enable veterans to make the transition

to postsecondary education; and

(12) programs and activities as described in paragraphs (1)

through (11) which are specially designed for students of limited

English proficiency.

(c) Required services

Any upward bound project assisted under this division which has

received funding for two or more years shall include, as part of

the core curriculum in the next and succeeding years, instruction

in mathematics through precalculus, laboratory science, foreign

language, composition, and literature.

(d) Requirements for approval of applications

In approving applications for upward bound projects under this

division for any fiscal year, the Secretary shall -

(1) require an assurance that not less than two-thirds of the

youths participating in the project proposed to be carried out

under any application be low-income individuals who are first

generation college students;

(2) require an assurance that the remaining youths

participating in the project proposed to be carried out under any

application be either low-income individuals or first generation

college students;

(3) require that there be a determination by the institution,

with respect to each participant in such project that the

participant has a need for academic support in order to pursue

successfully a program of education beyond secondary school; and

(4) require that such participants be persons who have

completed 8 years of elementary education and are at least 13

years of age but not more than 19 years of age, unless the

imposition of any such limitation would defeat the purposes of

this section.

(e) Maximum stipends

Youths participating in a project proposed to be carried out

under any application may be paid stipends not in excess of $60 per

month during June, July, and August, except that youth

participating in a work-study position under subsection (b)(10) of

this section may be paid a stipend of $300 per month during June,

July, and August. Youths participating in a project proposed to be

carried out under any application may be paid stipends not in

excess of $40 per month during the remaining period of the year.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 402C, as added Pub. L. 102-325,

title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat. 487; amended

Pub. L. 103-208, Sec. 2(b)(10), Dec. 20, 1993, 107 Stat. 2459; Pub.

L. 105-244, title IV, Sec. 402(c), Oct. 7, 1998, 112 Stat. 1654.)

-MISC1-

AMENDMENTS

1998 - Subsec. (b)(2). Pub. L. 105-244, Sec. 402(c)(1)(A),

substituted ''counseling and workshops'' for ''personal

counseling''.

Subsec. (b)(9). Pub. L. 105-244, Sec. 402(c)(1)(B), inserted ''or

counselors'' after ''teachers'' and struck out ''and'' after

semicolon.

Subsec. (b)(10), (11). Pub. L. 105-244, Sec. 402(c)(1)(D), added

pars. (10) and (11). Former par. (10) redesignated (12).

Subsec. (b)(12). Pub. L. 105-244, Sec. 402(c)(1)(E), substituted

''(11)'' for ''(9)''.

Pub. L. 105-244, Sec. 402(c)(1)(C), redesignated par. (10) as

(12).

Subsec. (e). Pub. L. 105-244, Sec. 402(c)(2), substituted

''except that youth participating in a work-study position under

subsection (b)(10) of this section may be paid a stipend of $300

per month during June, July, and August. Youths participating in a

project proposed to be carried out under any application may be

paid stipends not in excess of $40 per month during the remaining

period of the year.'' for ''and not in excess of $40 per month

during the remaining period of the year.''

1993 - Subsec. (c). Pub. L. 103-208 substituted ''foreign'' for

''and foreign''.

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 section 1070a-11 of this title.

-CITE-

20 USC Sec. 1070a-14 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 1 - Federal TRIO Programs

-HEAD-

Sec. 1070a-14. Student support services

-STATUTE-

(a) Program authority

The Secretary shall carry out a program to be known as student

support services which shall be designed -

(1) to increase college retention and graduation rates for

eligible students;

(2) to increase the transfer rates of eligible students from

2-year to 4-year institutions; and

(3) to foster an institutional climate supportive of the

success of low-income and first generation college students and

individuals with disabilities.

(b) Permissible services

A student support services project assisted under this division

may provide services such as -

(1) instruction in reading, writing, study skills, mathematics,

and other subjects necessary for success beyond secondary school;

(2) personal counseling;

(3) academic advice and assistance in course selection;

(4) tutorial services and counseling and peer counseling;

(5) exposure to cultural events and academic programs not

usually available to disadvantaged students;

(6) activities designed to acquaint students participating in

the project with the range of career options available to them;

(7) activities designed to assist students participating in the

project in securing admission and financial assistance for

enrollment in graduate and professional programs;

(8) activities designed to assist students currently enrolled

in 2-year institutions in securing admission and financial

assistance for enrollment in a four-year program of postsecondary

education;

(9) mentoring programs involving faculty or upper class

students, or a combination thereof; and

(10) programs and activities as described in paragraphs (1)

through (9) which are specially designed for students of limited

English proficiency.

(c) Special rule

(1) Use for student aid

A recipient of a grant that undertakes any of the permissible

services identified in subsection (b) of this section may, in

addition, use such funds to provide grant aid to students. A

grant provided under this paragraph shall not exceed the maximum

appropriated Pell Grant or, be less than the minimum appropriated

Pell Grant, for the current academic year. In making grants to

students under this subsection, an institution shall ensure that

adequate consultation takes place between the student support

service program office and the institution's financial aid

office.

(2) Eligible students

For purposes of receiving grant aid under this subsection,

eligible students shall be current participants in the student

support services program offered by the institution and be -

(A) students who are in their first 2 years of postsecondary

education and who are receiving Federal Pell Grants under

subpart 1 of part A of this subchapter; or

(B) students who have completed their first 2 years of

postsecondary education and who are receiving Federal Pell

Grants under subpart 1 of part A of this subchapter if the

institution demonstrates to the satisfaction of the Secretary

that -

(i) these students are at high risk of dropping out; and

(ii) it will first meet the needs of all its eligible

first- and second-year students for services under this

paragraph.

(3) Determination of need

A grant provided to a student under paragraph (1) shall not be

considered in determining that student's need for grant or work

assistance under this subchapter, except that in no case shall

the total amount of student financial assistance awarded to a

student under this subchapter exceed that student's cost of

attendance, as defined in section 1087ll of this title.

(4) Matching required

A recipient of a grant who uses such funds for the purpose

described in paragraph (1) shall match the funds used for such

purpose, in cash, from non-Federal funds, in an amount that is

not less than 33 percent of the total amount of funds used for

that purpose. This paragraph shall not apply to any grant

recipient that is an institution of higher education eligible to

receive funds under part A or B of subchapter III or subchapter V

of this chapter.

(5) Reservation

In no event may a recipient use more than 20 percent of the

funds received under this section for grant aid.

(6) Supplement, not supplant

Funds received by a grant recipient that are used under this

subsection shall be used to supplement, and not supplant,

non-Federal funds expended for student support services programs.

(d) Requirements for approval of applications

In approving applications for student support services projects

under this division for any fiscal year, the Secretary shall -

(1) require an assurance that not less than two-thirds of the

persons participating in the project proposed to be carried out

under any application -

(A) be individuals with disabilities; or

(B) be low-income individuals who are first generation

college students;

(2) require an assurance that the remaining students

participating in the project proposed to be carried out under any

application be low-income individuals, first generation college

students, or individuals with disabilities;

(3) require an assurance that not less than one-third of the

individuals with disabilities participating in the project be

low-income individuals;

(4) require that there be a determination by the institution,

with respect to each participant in such project, that the

participant has a need for academic support in order to pursue

successfully a program of education beyond secondary school;

(5) require that such participants be enrolled or accepted for

enrollment at the institution which is the recipient of the grant

or contract; and

(6) consider, in addition to such other criteria as the

Secretary may prescribe, the institution's effort, and where

applicable past history, in -

(A) providing sufficient financial assistance to meet the

full financial need of each student in the project; and

(B) maintaining the loan burden of each such student at a

manageable level.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 402D, as added Pub. L. 102-325,

title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat. 488; amended

Pub. L. 103-208, Sec. 2(b)(11), Dec. 20, 1993, 107 Stat. 2459; Pub.

L. 105-244, title IV, Sec. 402(d), Oct. 7, 1998, 112 Stat. 1655;

Pub. L. 106-554, Sec. 1(a)(1) (title III, Sec. 317(a)), Dec. 21,

2000, 114 Stat. 2763, 2763A-48.)

-MISC1-

AMENDMENTS

2000 - Subsecs. (c), (d). Pub. L. 106-554 added subsec. (c) and

redesignated former subsec. (c) as (d).

1998 - Subsec. (c)(6). Pub. L. 105-244 amended par. (6)

generally. Prior to amendment, par. (6) read as follows: ''require

an assurance from the institution which is the recipient of the

grant or contract that each student enrolled in the project will be

offered sufficient financial assistance to meet that student's full

financial need.''

1993 - Subsec. (c)(2). Pub. L. 103-208 struck out ''either''

after ''application''.

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-554, Sec. 1(a)(1) (title III, Sec. 317(b)), Dec. 21,

2000, 114 Stat. 2763, 2763A-49, provided that: ''The amendments

made by subsection (a) (amending this section) shall apply with

respect to student support services grants awarded on or after the

date of enactment of this Act (Dec. 21, 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 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 1070a-11, 1070a-24 of

this title.

-CITE-

20 USC Sec. 1070a-15 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 1 - Federal TRIO Programs

-HEAD-

Sec. 1070a-15. Postbaccalaureate achievement program authority

-STATUTE-

(a) Program authority

The Secretary shall carry out a program to be known as the

''Ronald E. McNair Postbaccalaureate Achievement Program'' that

shall be designed to provide disadvantaged college students with

effective preparation for doctoral study.

(b) Services

A postbaccalaureate achievement project assisted under this

section may provide services such as -

(1) opportunities for research or other scholarly activities at

the institution or at graduate centers designed to provide

students with effective preparation for doctoral study;

(2) summer internships;

(3) seminars and other educational activities designed to

prepare students for doctoral study;

(4) tutoring;

(5) academic counseling;

(6) activities designed to assist students participating in the

project in securing admission to and financial assistance for

enrollment in graduate programs;

(7) mentoring programs involving faculty members at

institutions of higher education, students, or any combination of

such persons; and

(8) exposure to cultural events and academic programs not

usually available to disadvantaged students.

(c) Requirements

In approving applications for postbaccalaureate achievement

projects assisted under this section for any fiscal year, the

Secretary shall require -

(1) an assurance that not less than two-thirds of the

individuals participating in the project proposed to be carried

out under any application be low-income individuals who are first

generation college students;

(2) an assurance that the remaining persons participating in

the project proposed to be carried out be from a group that is

underrepresented in graduate education;

(3) an assurance that participants be enrolled in a degree

program at an eligible institution having an agreement with the

Secretary in accordance with the provisions of section 1094 of

this title; and

(4) an assurance that participants in summer research

internships have completed their sophomore year in postsecondary

education.

(d) Award considerations

In addition to such other selection criteria as may be prescribed

by regulations, the Secretary shall consider in making awards to

institutions under this section -

(1) the quality of research and other scholarly activities in

which students will be involved;

(2) the level of faculty involvement in the project and the

description of the research in which students will be involved;

and

(3) the institution's plan for identifying and recruiting

participants including students enrolled in projects authorized

under this section.

(e) Maximum stipends

Students participating in research under a postbaccalaureate

achievement project may receive an award that -

(1) shall include a stipend not to exceed $2,800 per annum; and

(2) may include, in addition, the costs of summer tuition,

summer room and board, and transportation to summer programs.

(f) Funding

From amounts appropriated pursuant to the authority of section

1070a-11(f) of this title, the Secretary shall, to the extent

practicable, allocate funds for projects authorized by this section

in an amount which is not less than $11,000,000 for each of the

fiscal years 1993 through 1997.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 402E, as added Pub. L. 102-325,

title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat. 489; amended

Pub. L. 105-244, title IV, Sec. 402(e), Oct. 7, 1998, 112 Stat.

1655.)

-MISC1-

AMENDMENTS

1998 - Subsec. (e)(1). Pub. L. 105-244 substituted ''$2,800'' for

''$2,400''.

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 1070a-11 of this title.

-CITE-

20 USC Sec. 1070a-16 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 1 - Federal TRIO Programs

-HEAD-

Sec. 1070a-16. Educational opportunity centers

-STATUTE-

(a) Program authority; services provided

The Secretary shall carry out a program to be known as

educational opportunity centers which shall be designed -

(1) to provide information with respect to financial and

academic assistance available for individuals desiring to pursue

a program of postsecondary education; and

(2) to provide assistance to such persons in applying for

admission to institutions at which a program of postsecondary

education is offered, including preparing necessary applications

for use by admissions and financial aid officers.

(b) Permissible services

An educational opportunity center assisted under this section may

provide services such as -

(1) public information campaigns designed to inform the

community regarding opportunities for postsecondary education and

training;

(2) academic advice and assistance in course selection;

(3) assistance in completing college admission and financial

aid applications;

(4) assistance in preparing for college entrance examinations;

(5) guidance on secondary school reentry or entry to a general

educational development (GED) program or other alternative

education programs for secondary school dropouts;

(6) personal counseling;

(7) tutorial services;

(8) career workshops and counseling;

(9) mentoring programs involving elementary or secondary school

teachers, faculty members at institutions of higher education,

students, or any combination of such persons; and

(10) programs and activities as described in paragraphs (1)

through (9) which are specially designed for students of limited

English proficiency.

(c) Requirements for approval of applications

In approving applications for educational opportunity centers

under this section for any fiscal year the Secretary shall -

(1) require an assurance that not less than two-thirds of the

persons participating in the project proposed to be carried out

under any application be low-income individuals who are first

generation college students;

(2) require that such participants be persons who are at least

nineteen years of age, unless the imposition of such limitation

with respect to any person would defeat the purposes of this

section or the purposes of section 1070a-12 of this title; and

(3) require an assurance that individuals participating in the

project proposed in the application do not have access to

services from another project funded under this section or under

section 1070a-12 of this title.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 402F, as added Pub. L. 102-325,

title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat. 490.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070a-11, 1070a-12 of

this title.

-CITE-

20 USC Sec. 1070a-17 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 1 - Federal TRIO Programs

-HEAD-

Sec. 1070a-17. Staff development activities

-STATUTE-

(a) Secretary's authority

For the purpose of improving the operation of the programs and

projects authorized by this division, the Secretary is authorized

to make grants to institutions of higher education and other public

and private nonprofit institutions and organizations to provide

training for staff and leadership personnel employed in,

participating in, or preparing for employment in, such programs and

projects.

(b) Contents of training programs

Such training shall include conferences, internships, seminars,

workshops, and the publication of manuals designed to improve the

operation of such programs and projects and shall be carried out in

the various regions of the Nation in order to ensure that the

training opportunities are appropriate to meet the needs in the

local areas being served by such programs and projects. Such

training shall be offered annually for new directors of projects

funded under this division as well as annually on the following

topics and other topics chosen by the Secretary:

(1) Legislative and regulatory requirements for the operation

of programs funded under this division.

(2) Assisting students in receiving adequate financial aid from

programs assisted under this subchapter and part C of subchapter

I of chapter 34 of title 42 and other programs.

(3) The design and operation of model programs for projects

funded under this division.

(4) The use of appropriate educational technology in the

operation of projects assisted under this division.

(c) Consultation

Grants for the purposes of this section shall be made only after

consultation with regional and State professional associations of

persons having special knowledge with respect to the needs and

problems of such programs and projects.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 402G, as added Pub. L. 102-325,

title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat. 491; amended

Pub. L. 105-244, title IV, Sec. 402(f), Oct. 7, 1998, 112 Stat.

1655.)

-MISC1-

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-244, Sec. 402(f)(1), inserted

''participating in,'' after ''leadership personnel employed in,''.

Subsec. (b)(4). Pub. L. 105-244, Sec. 402(f)(2), added par. (4).

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 1070a-11 of this title.

-CITE-

20 USC Sec. 1070a-18 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 1 - Federal TRIO Programs

-HEAD-

Sec. 1070a-18. Evaluations and grants for project improvement and

dissemination partnership projects

-STATUTE-

(a) Evaluations

(1) In general

For the purpose of improving the effectiveness of the programs

and projects assisted under this division, the Secretary may make

grants to or enter into contracts with institutions of higher

education and other public and private institutions and

organizations to evaluate the effectiveness of the programs and

projects assisted under this division.

(2) Practices

The evaluations described in paragraph (1) shall identify

institutional, community, and program or project practices that

are particularly effective in enhancing the access of low-income

individuals and first-generation college students to

postsecondary education, the preparation of the individuals and

students for postsecondary education, and the success of the

individuals and students in postsecondary education. Such

evaluations shall also investigate the effectiveness of

alternative and innovative methods within Federal TRIO programs

of increasing access to, and retention of, students in

postsecondary education.

(b) Grants

The Secretary may award grants to institutions of higher

education or other private and public institutions and

organizations, that are carrying out a program or project assisted

under this division prior to October 7, 1998, to enable the

institutions and organizations to expand and leverage the success

of such programs or projects by working in partnership with other

institutions, community-based organizations, or combinations of

such institutions and organizations, that are not receiving

assistance under this division and are serving low-income students

and first generation college students, in order to -

(1) disseminate and replicate best practices of programs or

projects assisted under this division; and

(2) provide technical assistance regarding programs and

projects assisted under this division.

(c) Results

In order to improve overall program or project effectiveness, the

results of evaluations and grants described in this section shall

be disseminated by the Secretary to similar programs or projects

assisted under this subpart, as well as other individuals concerned

with postsecondary access for and retention of low-income

individuals and first-generation college students.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 402H, as added Pub. L. 102-325,

title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat. 491; amended

Pub. L. 105-244, title IV, Sec. 402(g), Oct. 7, 1998, 112 Stat.

1655.)

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-244 amended section generally, revising and

restating former subsecs. (a) to (c) relating to evaluation for

project improvement.

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 1070a-11 of this title.

-CITE-

20 USC Division 2 - Gaining Early Awareness and Readiness

for Undergraduate Programs 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 2 - Gaining Early Awareness and Readiness for

Undergraduate Programs

.

-HEAD-

Division 2 - Gaining Early Awareness and Readiness for

Undergraduate Programs

-COD-

CODIFICATION

Chapter 2 of subpart 2 of part A of title IV of the Higher

Education Act of 1965, comprising this division, was originally

added to Pub. L. 89-329, title IV, by Pub. L. 102-325, title IV,

Sec. 402(a)(4), July 23, 1992, 106 Stat. 492, and amended by Pub.

L. 103-208, Dec. 20, 1993, 107 Stat. 2457; Pub. L. 103-382, Oct.

20, 1994, 108 Stat. 3518; Pub. L. 104-193, Aug. 22, 1996, 110 Stat.

2105. Chapter 2 is shown herein, however, as having been added by

Pub. L. 105-244, title IV, Sec. 403, Oct. 7, 1998, 112 Stat. 1656,

without reference to those intervening amendments because of the

extensive revision of chapter 2 by Pub. L. 105-244.

-CITE-

20 USC Sec. 1070a-21 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 2 - Gaining Early Awareness and Readiness for

Undergraduate Programs

-HEAD-

Sec. 1070a-21. Early intervention and college awareness program

authorized

-STATUTE-

(a) Program authorized

The Secretary is authorized, in accordance with the requirements

of this division, to establish a program that -

(1) encourages eligible entities to provide or maintain a

guarantee to eligible low-income students who obtain a secondary

school diploma (or its recognized equivalent), of the financial

assistance necessary to permit the students to attend an

institution of higher education; and

(2) supports eligible entities in providing -

(A) additional counseling, mentoring, academic support,

outreach, and supportive services to elementary school, middle

school, and secondary school students who are at risk of

dropping out of school; and

(B) information to students and their parents about the

advantages of obtaining a postsecondary education and the

college financing options for the students and their parents.

(b) Awards

(1) In general

From funds appropriated under section 1070a-28 of this title

for each fiscal year, the Secretary shall make awards to eligible

entities described in paragraphs (1) and (2) of subsection (c) of

this section to enable the entities to carry out the program

authorized under subsection (a) of this section.

(2) Priority

In making awards to eligible entities described in paragraph

(c)(1) of this section, the Secretary shall -

(A) give priority to eligible entities that -

(i) on the day before October 7, 1998, carried out

successful educational opportunity programs under this

division (as this division was in effect on such day); and

(ii) have a prior, demonstrated commitment to early

intervention leading to college access through collaboration

and replication of successful strategies;

(B) ensure that students served under this division on the

day before October 7, 1998, continue to receive assistance

through the completion of secondary school.

(c) ''Eligible entity'' defined

For the purposes of this division, the term ''eligible entity''

means -

(1) a State; or

(2) a partnership consisting of -

(A) one or more local educational agencies acting on behalf

of -

(i) one or more elementary schools or secondary schools;

and

(ii) the secondary schools that students from the schools

described in clause (i) would normally attend;

(B) one or more degree granting institutions of higher

education; and

(C) at least two community organizations or entities, such as

businesses, professional associations, community-based

organizations, philanthropic organizations, State agencies,

institutions or agencies sponsoring programs authorized under

subpart 4 of this part, or other public or private agencies or

organizations.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 404A, as added Pub. L. 105-244,

title IV, Sec. 403, Oct. 7, 1998, 112 Stat. 1656.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070a-21, Pub. L. 89-329, title IV, Sec. 404A, as

added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106

Stat. 492; amended Pub. L. 103-208, Sec. 2(b)(12), Dec. 20, 1993,

107 Stat. 2459, authorized establishment of early intervention

program, prior to the general amendment of this division by Pub. L.

105-244.

EFFECTIVE DATE

Division effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

EVALUATION OF TUITION GUARANTY PROGRAMS

Pub. L. 102-325, title XIV, Sec. 1407, July 23, 1992, 106 Stat.

819, directed Secretary of Education to conduct study of

effectiveness of programs for disadvantaged children that promise

the child financial resources needed to pursue postsecondary

education in exchange for child's commitment to achieve

satisfactory elementary and secondary education, and to submit

reports regarding study by June 30, 1996, and by Jan. 1, 1997, to

committees of Congress, prior to repeal by Pub. L. 105-332, Sec.

6(b)(2), Oct. 31, 1998, 112 Stat. 3128.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070a-22, 1070a-23,

1070a-24, 1070a-25 of this title.

-CITE-

20 USC Sec. 1070a-22 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 2 - Gaining Early Awareness and Readiness for

Undergraduate Programs

-HEAD-

Sec. 1070a-22. Requirements

-STATUTE-

(a) Funding rules

(1) Continuation awards

From the amount appropriated under section 1070a-28 of this

title for a fiscal year, the Secretary shall continue to award

grants to States under this division (as this division was in

effect on the day before October 7, 1998) in accordance with the

terms and conditions of such grants.

(2) Distribution

From the amount appropriated under section 1070a-28 of this

title that remains after making continuation awards under

paragraph (1) for a fiscal year, the Secretary shall -

(A) make available -

(i) not less than 33 percent of the amount to eligible

entities described in section 1070a-21(c)(1) of this title;

and

(ii) not less than 33 percent of the amount to eligible

entities described in section 1070a-21(c)(2) of this title;

and

(B) award the remainder of the amount to eligible entities

described in paragraph (1) or (2) of section 1070a-21(c) of

this title.

(3) Special rule

The Secretary shall annually reevaluate the distribution of

funds described in paragraph (2)(B) based on number, quality, and

promise of the applications and adjust the distribution

accordingly.

(b) Limitation

Each eligible entity described in section 1070a-21(c)(1) of this

title, and each eligible entity described in section 1070a-21(c)(2)

of this title that conducts a scholarship component under section

1070a-25 of this title, shall use not less than 25 percent and not

more than 50 percent of grant funds received under this division

for the early intervention component of an eligible entity's

program under this division, except that the Secretary may waive

the 50 percent limitation if the eligible entity demonstrates that

the eligible entity has another means of providing the students

with financial assistance that is described in the plan submitted

under section 1070a-23 of this title.

(c) Coordination

Each eligible entity shall ensure that the activities assisted

under this division are, to the extent practicable, coordinated

with, and complement and enhance -

(1) services under this division provided by other eligible

entities serving the same school district or State; and

(2) related services under other Federal or non-Federal

programs.

(d) Designation of fiscal agent

An eligible entity described in section 1070a-21(c)(2) of this

title shall designate an institution of higher education or a local

educational agency as the fiscal agent for the eligible entity.

(e) Coordinators

An eligible entity described in section 1070a-21(c)(2) of this

title shall have a full-time program coordinator or a part-time

program coordinator, whose primary responsibility is a project

under section 1070a-23 of this title.

(f) Displacement

An eligible entity described in (FOOTNOTE 1) 1070a-21(c)(2) of

this title shall ensure that the activities assisted under this

division will not displace an employee or eliminate a position at a

school assisted under this division, including a partial

displacement such as a reduction in hours, wages or employment

benefits.

(FOOTNOTE 1) So in original. Probably should be followed by

''section''.

(g) Cohort approach

(1) In general

The Secretary shall require that eligible entities described in

section 1070a-21(c)(2) of this title -

(A) provide services under this division to at least one

grade level of students, beginning not later than 7th grade, in

a participating school that has a 7th grade and in which at

least 50 percent of the students enrolled are eligible for free

or reduced-price lunch under the Richard B. Russell National

School Lunch Act (42 U.S.C. 1751 et seq.) (or, if an eligible

entity determines that it would promote the effectiveness of a

program, an entire grade level of students, beginning not later

than the 7th grade, who reside in public housing as defined in

section 1437a(b)(1) of title 42); and

(B) ensure that the services are provided through the 12th

grade to students in the participating grade level.

(2) Coordination requirement

In order for the Secretary to require the cohort approach

described in paragraph (1), the Secretary shall, where

applicable, ensure that the cohort approach is done in

coordination and collaboration with existing early intervention

programs and does not duplicate the services already provided to

a school or community.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 404B, as added Pub. L. 105-244,

title IV, Sec. 403, Oct. 7, 1998, 112 Stat. 1657; amended Pub. L.

106-78, title VII, Sec. 752(b)(8), Oct. 22, 1999, 113 Stat. 1169.)

-REFTEXT-

REFERENCES IN TEXT

The Richard B. Russell National School Lunch Act, referred to in

subsec. (g)(1)(A), is act June 4, 1946, ch. 281, 60 Stat. 230, as

amended, which is classified generally to chapter 13 (Sec. 1751 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 1751 of Title 42 and Tables.

-MISC2-

PRIOR PROVISIONS

A prior section 1070a-22, Pub. L. 89-329, title IV, Sec. 404B, as

added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106

Stat. 492; amended Pub. L. 103-208, Sec. 2(b)(13), (14), Dec. 20,

1993, 107 Stat. 2459, related to State eligibility and State plan,

prior to the general amendment of this division by Pub. L. 105-244.

AMENDMENTS

1999 - Subsec. (g)(1)(A). Pub. L. 106-78 substituted ''Richard B.

Russell National School Lunch Act'' for ''National School Lunch

Act''.

-CITE-

20 USC Sec. 1070a-23 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 2 - Gaining Early Awareness and Readiness for

Undergraduate Programs

-HEAD-

Sec. 1070a-23. Eligible entity plans

-STATUTE-

(a) Plan required for eligibility

(1) In general

In order for an eligible entity to qualify for a grant under

this division, the eligible entity shall submit to the Secretary

a plan for carrying out the program under this division. Such

plan shall provide for the conduct of a scholarship component if

required or undertaken pursuant to section 1070a-25 of this title

and an early intervention component required pursuant to section

1070a-24 of this title.

(2) Contents

Each plan submitted pursuant to paragraph (1) shall be in such

form, contain or be accompanied by such information or

assurances, and be submitted at such time as the Secretary may

require by regulation. Each such plan shall -

(A) describe the activities for which assistance under this

division is sought; and

(B) provide such additional assurances as the Secretary

determines necessary to ensure compliance with the requirements

of this division.

(b) Matching requirement

(1) In general

The Secretary shall not approve a plan submitted under

subsection (a) of this section unless such plan -

(A) provides that the eligible entity will provide, from

State, local, institutional, or private funds, not less than 50

percent of the cost of the program, which matching funds may be

provided in cash or in kind;

(B) specifies the methods by which matching funds will be

paid; and

(C) includes provisions designed to ensure that funds

provided under this division shall supplement and not supplant

funds expended for existing programs.

(2) Special rule

Notwithstanding the matching requirement described in paragraph

(1)(A), the Secretary may by regulation modify the percentage

requirement described in paragraph (1)(A) for eligible entities

described in section 1070a-21(c)(2) of this title.

(c) Methods for complying with matching requirement

An eligible entity may count toward the matching requirement

described in subsection (b)(1)(A) of this section -

(1) the amount of the financial assistance paid to students

from State, local, institutional, or private funds under this

division;

(2) the amount of tuition, fees, room or board waived or

reduced for recipients of financial assistance under this

division; and

(3) the amount expended on documented, targeted, long-term

mentoring and counseling provided by volunteers or paid staff of

nonschool organizations, including businesses, religious

organizations, community groups, postsecondary educational

institutions, nonprofit and philanthropic organizations, and

other organizations.

(d) Peer review panels

The Secretary shall convene peer review panels to assist in

making determinations regarding the awarding of grants under this

division.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 404C, as added Pub. L. 105-244,

title IV, Sec. 403, Oct. 7, 1998, 112 Stat. 1658.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070a-23, Pub. L. 89-329, title IV, Sec. 404C, as

added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106

Stat. 493; amended Pub. L. 103-208, Sec. 2(b)(15)-(17), Dec. 20,

1993, 107 Stat. 2459; Pub. L. 104-193, title I, Sec. 110(h)(1),

Aug. 22, 1996, 110 Stat. 2172, related to early intervention, prior

to the general amendment of this division by Pub. L. 105-244. See

section 1070a-24 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070a-22, 1070a-24 of

this title.

-CITE-

20 USC Sec. 1070a-24 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 2 - Gaining Early Awareness and Readiness for

Undergraduate Programs

-HEAD-

Sec. 1070a-24. Early intervention

-STATUTE-

(a) Services

(1) In general

In order to receive a grant under this division, an eligible

entity shall demonstrate to the satisfaction of the Secretary, in

the plan submitted under section 1070a-23 of this title, that the

eligible entity will provide comprehensive mentoring, counseling,

outreach, and supportive services to students participating in

programs under this division. Such counseling shall include -

(A) financial aid counseling and information regarding the

opportunities for financial assistance under this subchapter

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

(B) activities or information regarding -

(i) fostering and improving parent involvement in promoting

the advantages of a college education, academic admission

requirements, and the need to take college preparation

courses;

(ii) college admissions and achievement tests; and

(iii) college application procedures.

(2) Methods

The eligible entity shall demonstrate in such plan, pursuant to

regulations of the Secretary, the methods by which the eligible

entity will target services on priority students described in

subsection (c) of this section, if applicable.

(b) Uses of funds

(1) In general

The Secretary shall, by regulation, establish criteria for

determining whether comprehensive mentoring, counseling,

outreach, and supportive services programs may be used to meet

the requirements of subsection (a) of this section.

(2) Permissible activities

Examples of activities that meet the requirements of subsection

(a) of this section include the following:

(A) Providing eligible students in preschool through grade 12

with a continuing system of mentoring and advising that -

(i) is coordinated with the Federal and State community

service initiatives; and

(ii) may include such support services as after school and

summer tutoring, assistance in obtaining summer jobs, career

mentoring, and academic counseling.

(B) Requiring each student to enter into an agreement under

which the student agrees to achieve certain academic

milestones, such as completing a prescribed set of courses and

maintaining satisfactory progress described in section 1091(c)

of this title, in exchange for receiving tuition assistance for

a period of time to be established by each eligible entity.

(C) Activities designed to ensure secondary school completion

and college enrollment of at-risk children, such as

identification of at-risk children, after school and summer

tutoring, assistance in obtaining summer jobs, academic

counseling, volunteer and parent involvement, providing former

or current scholarship recipients as mentor or peer counselors,

skills assessment, providing access to rigorous core courses

that reflect challenging academic standards, personal

counseling, family counseling and home visits, staff

development, and programs and activities described in this

subparagraph that are specially designed for students of

limited English proficiency.

(D) Summer programs for individuals who are in their

sophomore or junior years of secondary school or are planning

to attend an institution of higher education in the succeeding

academic year that -

(i) are carried out at an institution of higher education

that has programs of academic year supportive services for

disadvantaged students through projects authorized under

section 1070a-14 of this title or through comparable projects

funded by the State or other sources;

(ii) provide for the participation of the individuals who

are eligible for assistance under section 1070a-14 of this

title or who are eligible for comparable programs funded by

the State;

(iii)(I) provide summer instruction in remedial,

developmental or supportive courses;

(II) provide such summer services as counseling, tutoring,

or orientation; and

(III) provide financial assistance to the individuals to

cover the individuals' summer costs for books, supplies,

living costs, and personal expenses; and

(iv) provide the individuals with financial assistance

during each academic year the individuals are enrolled at the

participating institution after the summer program.

(E) Requiring eligible students to meet other standards or

requirements as the State determines necessary to meet the

purposes of this section.

(c) Priority students

For eligible entities not using a cohort approach, the eligible

entity shall treat as priority students any student in preschool

through grade 12 who is eligible -

(1) to be counted under section 6333(c) of this title;

(2) for free or reduced price meals under the Richard B.

Russell National School Lunch Act (42 U.S.C. 1751 et seq.); or

(3) for assistance pursuant to part A of title IV of the Social

Security Act (42 U.S.C. 601 et seq.).

(d) Allowable providers

In the case of eligible entities described in section

1070a-21(c)(1) of this title, the activities required by this

section may be provided by service providers such as

community-based organizations, schools, institutions of higher

education, public and private agencies, nonprofit and philanthropic

organizations, businesses, institutions and agencies sponsoring

programs authorized under subpart 4 of this part, and other

organizations the State deems appropriate.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 404D, as added Pub. L. 105-244,

title IV, Sec. 403, Oct. 7, 1998, 112 Stat. 1659; amended Pub. L.

106-78, title VII, Sec. 752(b)(8), Oct. 22, 1999, 113 Stat. 1169.)

-REFTEXT-

REFERENCES IN TEXT

The Richard B. Russell National School Lunch Act, referred to in

subsec. (c)(2), is act June 4, 1946, ch. 281, 60 Stat. 230, as

amended, which is classified generally to chapter 13 (Sec. 1751 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 1751 of Title 42 and Tables.

The Social Security Act, referred to in subsec. (c)(3), is act

Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of title

IV of the Act is classified generally to part A (Sec. 601 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.

-MISC2-

PRIOR PROVISIONS

A prior section 1070a-24, Pub. L. 89-329, title IV, Sec. 404D, as

added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106

Stat. 495; amended Pub. L. 103-208, Sec. 2(b)(18), (19), Dec. 20,

1993, 107 Stat. 2459, related to scholarship component, prior to

the general amendment of this division by Pub. L. 105-244. See

section 1070a-25 of this title.

AMENDMENTS

1999 - Subsec. (c)(2). Pub. L. 106-78 substituted ''Richard B.

Russell National School Lunch Act'' for ''National School Lunch

Act''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070a-23, 1070a-25 of

this title.

-CITE-

20 USC Sec. 1070a-25 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 2 - Gaining Early Awareness and Readiness for

Undergraduate Programs

-HEAD-

Sec. 1070a-25. Scholarship component

-STATUTE-

(a) In general

(1) States

In order to receive a grant under this division, an eligible

entity described in section 1070a-21(c)(1) of this title shall

establish or maintain a financial assistance program that awards

scholarships to students in accordance with the requirements of

this section. The Secretary shall encourage the eligible entity

to ensure that a scholarship provided pursuant to this section is

available to an eligible student for use at any institution of

higher education.

(2) Partnerships

An eligible entity described in section 1070a-21(c)(2) of this

title may award scholarships to eligible students in accordance

with the requirements of this section.

(b) Grant amounts

The maximum amount of a scholarship that an eligible student

shall be eligible to receive under this section shall be

established by the eligible entity. The minimum amount of the

scholarship for each fiscal year shall not be less than the lesser

of -

(1) 75 percent of the average cost of attendance for an

in-State student, in a 4-year program of instruction, at public

institutions of higher education in such State, as determined in

accordance with regulations prescribed by the Secretary; or

(2) the maximum Federal Pell Grant funded under section 1070a

of this title for such fiscal year.

(c) Relation to other assistance

Scholarships provided under this section shall not be considered

for the purpose of awarding Federal grant assistance under this

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

except that in no case shall the total amount of student financial

assistance awarded to a student under this subchapter and part C of

subchapter I of chapter 34 of title 42 exceed such student's total

cost of attendance.

(d) Eligible students

A student eligible for assistance under this section is a student

who -

(1) is less than 22 years old at time of first scholarship

award under this section;

(2) receives a secondary school diploma or its recognized

equivalent on or after January 1, 1993;

(3) is enrolled or accepted for enrollment in a program of

undergraduate instruction at an institution of higher education

that is located within the State's boundaries, except that, at

the State's option, an eligible entity may offer scholarship

program portability for recipients who attend institutions of

higher education outside such State; and

(4) who participated in the early intervention component

required under section 1070a-24 of this title.

(e) Priority

The Secretary shall ensure that each eligible entity places a

priority on awarding scholarships to students who will receive a

Federal Pell Grant for the academic year for which the scholarship

is awarded under this section.

(f) Special rule

An eligible entity may consider students who have successfully

participated in programs funded under division 1 of this subpart to

have met the requirements of subsection (d)(4) of this section.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 404E, as added Pub. L. 105-244,

title IV, Sec. 403, Oct. 7, 1998, 112 Stat. 1661.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070a-25, Pub. L. 89-329, title IV, Sec. 404E, as

added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106

Stat. 495; amended Pub. L. 103-208, Sec. 2(b)(20), Dec. 20, 1993,

107 Stat. 2459, related to distribution of funds, prior to the

general amendment of this division by Pub. L. 105-244.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070a-22, 1070a-23 of

this title.

-CITE-

20 USC Sec. 1070a-26 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 2 - Gaining Early Awareness and Readiness for

Undergraduate Programs

-HEAD-

Sec. 1070a-26. 21st Century Scholar Certificates

-STATUTE-

(a) Authority

The Secretary, using funds appropriated under section 1070a-28 of

this title that do not exceed $200,000 for a fiscal year -

(1) shall ensure that certificates, to be known as 21st Century

Scholar Certificates, are provided to all students participating

in programs under this division; and

(2) may, as practicable, ensure that such certificates are

provided to all students in grades 6 through 12 who attend

schools at which at least 50 percent of the students enrolled are

eligible for a free or reduced price lunch under the Richard B.

Russell National School Lunch Act (42 U.S.C. 1751 et seq.).

(b) Information required

A 21st Century Scholar Certificate shall be personalized for each

student and indicate the amount of Federal financial aid for

college which a student may be eligible to receive.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 404F, as added Pub. L. 105-244,

title IV, Sec. 403, Oct. 7, 1998, 112 Stat. 1662; amended Pub. L.

106-78, title VII, Sec. 752(b)(8), Oct. 22, 1999, 113 Stat. 1169.)

-REFTEXT-

REFERENCES IN TEXT

The Richard B. Russell National School Lunch Act, referred to in

subsec. (a)(2), is act June 4, 1946, ch. 281, 60 Stat. 230, as

amended, which is classified generally to chapter 13 (Sec. 1751 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 1751 of Title 42 and Tables.

-MISC2-

PRIOR PROVISIONS

A prior section 1070a-26, Pub. L. 89-329, title IV, Sec. 404F, as

added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106

Stat. 496; amended Pub. L. 103-208, Sec. 2(b)(21), (22), Dec. 20,

1993, 107 Stat. 2459, related to evaluation and report, prior to

the general amendment of this division by Pub. L. 105-244. See

section 1070a-27 of this title.

AMENDMENTS

1999 - Subsec. (a)(2). Pub. L. 106-78 substituted ''Richard B.

Russell National School Lunch Act'' for ''National School Lunch

Act''.

-CITE-

20 USC Sec. 1070a-27 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 2 - Gaining Early Awareness and Readiness for

Undergraduate Programs

-HEAD-

Sec. 1070a-27. Evaluation and report

-STATUTE-

(a) Evaluation

Each eligible entity receiving a grant under this division shall

biennially evaluate the activities assisted under this division in

accordance with the standards described in subsection (b) of this

section and shall submit to the Secretary a copy of such

evaluation. The evaluation shall permit service providers to track

eligible student progress during the period such students are

participating in the activities and shall be consistent with the

standards developed by the Secretary pursuant to subsection (b) of

this section.

(b) Evaluation standards

The Secretary shall prescribe standards for the evaluation

described in subsection (a) of this section. Such standards shall

-

(1) provide for input from eligible entities and service

providers; and

(2) ensure that data protocols and procedures are consistent

and uniform.

(c) Federal evaluation

In order to evaluate and improve the impact of the activities

assisted under this division, the Secretary shall, from not more

than 0.75 percent of the funds appropriated under section 1070a-28

of this title for a fiscal year, award one or more grants,

contracts, or cooperative agreements to or with public and private

institutions and organizations, to enable the institutions and

organizations to evaluate the effectiveness of the program and, as

appropriate, disseminate the results of the evaluation.

(d) Report

The Secretary shall biennially report to Congress regarding the

activities assisted under this division and the evaluations

conducted pursuant to this section.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 404G, as added Pub. L. 105-244,

title IV, Sec. 403, Oct. 7, 1998, 112 Stat. 1662.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070a-27, Pub. L. 89-329, title IV, Sec. 404G, as

added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106

Stat. 496; amended Pub. L. 103-208, Sec. 2(b)(23), Dec. 20, 1993,

107 Stat. 2459; Pub. L. 103-382, title III, Sec. 354, Oct. 20,

1994, 108 Stat. 3967, authorized appropriations for grants under

this division, prior to the general amendment of this division by

Pub. L. 105-244. See section 1070a-28 of this title.

-CITE-

20 USC Sec. 1070a-28 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 2 - Gaining Early Awareness and Readiness for

Undergraduate Programs

-HEAD-

Sec. 1070a-28. Authorization of appropriations

-STATUTE-

There are authorized to be appropriated to carry out this

division $200,000,000 for fiscal year 1999 and such sums as may be

necessary for each of the 4 succeeding fiscal years.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 404H, as added Pub. L. 105-244,

title IV, Sec. 403, Oct. 7, 1998, 112 Stat. 1663.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070a-21, 1070a-22,

1070a-26, 1070a-27 of this title.

-CITE-

20 USC Division 3 - Academic Achievement Incentive

Scholarships 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 3 - Academic Achievement Incentive Scholarships

.

-HEAD-

Division 3 - Academic Achievement Incentive Scholarships

-COD-

CODIFICATION

Chapter 3 of subpart 2 of part A of title IV of the Higher

Education Act of 1965, comprising this division, was originally

added to Pub. L. 89-329, title IV, by Pub. L. 102-325, title IV,

Sec. 402(a)(4), July 23, 1992, 106 Stat. 497. Chapter 3 is shown

herein, however, as having been added by Pub. L. 105-244, title IV,

Sec. 404, Oct. 7, 1998, 112 Stat. 1663, without reference to Pub.

L. 102-325 because of the extensive revision of chapter 3 by Pub.

L. 105-244.

-CITE-

20 USC Sec. 1070a-31 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 3 - Academic Achievement Incentive Scholarships

-HEAD-

Sec. 1070a-31. Scholarships authorized

-STATUTE-

The Secretary is authorized to award scholarships to students who

graduate from secondary school after May 1, 2000, to enable the

students to pay the cost of attendance at an institution of higher

education during the students first 2 academic years of

undergraduate education, if the students -

(1) are eligible to receive Federal Pell Grants for the year in

which the scholarships are awarded; and

(2) demonstrate academic achievement by graduating in the top

10 percent of their secondary school graduating class.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 406A, as added Pub. L. 105-244,

title IV, Sec. 404, Oct. 7, 1998, 112 Stat. 1663.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070a-31, Pub. L. 89-329, title IV, Sec. 406A, as

added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106

Stat. 497, authorized award of Presidential Access Scholarships,

prior to the general amendment of this division by Pub. L. 105-244.

EFFECTIVE DATE

Division effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC Sec. 1070a-32 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 3 - Academic Achievement Incentive Scholarships

-HEAD-

Sec. 1070a-32. Scholarship program requirements

-STATUTE-

(a) Amount of award

(1) In general

Except as provided in paragraph (2), the amount of a

scholarship awarded under this division for any academic year

shall be equal to 100 percent of the amount of the Federal Pell

Grant for which the recipient is eligible for the academic year.

(2) Adjustment for insufficient appropriations

If, after the Secretary determines the total number of eligible

applicants for an academic year in accordance with section

1070a-33 of this title, funds available to carry out this

division for the academic year are insufficient to fully fund all

awards under this division for the academic year, the amount of

the scholarship paid to each student under this division shall be

reduced proportionately.

(b) Assistance not to exceed cost of attendance

A scholarship awarded under this division to any student, in

combination with the Federal Pell Grant assistance and other

student financial assistance available to such student, may not

exceed the student's cost of attendance.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 406B, as added Pub. L. 105-244,

title IV, Sec. 404, Oct. 7, 1998, 112 Stat. 1663.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070a-32, Pub. L. 89-329, title IV, Sec. 406B, as

added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106

Stat. 497, related to scholarship program requirements, prior to

the general amendment of this division by Pub. L. 105-244.

-CITE-

20 USC Sec. 1070a-33 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 3 - Academic Achievement Incentive Scholarships

-HEAD-

Sec. 1070a-33. Eligibility of scholars

-STATUTE-

(a) Procedures established by regulation

The Secretary shall establish by regulation procedures for the

determination of eligibility of students for the scholarships

awarded under this division. Such procedures shall include

measures to prevent any secondary school from certifying more than

10 percent of the school's students for eligibility under this

section.

(b) Coordination

In prescribing procedures under subsection (a) of this section,

the Secretary shall ensure that the determination of eligibility

and the amount of the scholarship is determined in a timely and

accurate manner consistent with the requirements of section 1089 of

this title and the submission of the financial aid form required by

section 1090 of this title. For such purposes, the Secretary may

provide that, for the first academic year of a student's 2 academic

years of eligibility under this division, class rank may be

determined prior to graduation from secondary school, at such time

and in such manner as the Secretary may specify in regulations

prescribed under this division.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 406C, as added Pub. L. 105-244,

title IV, Sec. 404, Oct. 7, 1998, 112 Stat. 1664.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070a-33, Pub. L. 89-329, title IV, Sec. 406C, as

added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106

Stat. 497, related to eligibility of scholars, prior to the general

amendment of this division by Pub. L. 105-244.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1070a-32 of this title.

-CITE-

20 USC Sec. 1070a-34 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 3 - Academic Achievement Incentive Scholarships

-HEAD-

Sec. 1070a-34. Student requirements

-STATUTE-

(a) In general

Each eligible student desiring a scholarship under this division

shall submit an application to the Secretary at such time, in such

manner, and containing such information as the Secretary may

reasonably require.

(b) Continuing eligibility

In order for a student to continue to be eligible to receive a

scholarship under this division for the second year of

undergraduate education, the eligible student shall maintain

eligibility to receive a Federal Pell Grant for that year,

including fulfilling the requirements for satisfactory progress

described in section 1091(c) of this title.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 406D, as added Pub. L. 105-244,

title IV, Sec. 404, Oct. 7, 1998, 112 Stat. 1664.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070a-34, Pub. L. 89-329, title IV, Sec. 406D, as

added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106

Stat. 498, related to eligible early intervention programs, prior

to the general amendment of this division by Pub. L. 105-244.

-CITE-

20 USC Sec. 1070a-35 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 3 - Academic Achievement Incentive Scholarships

-HEAD-

Sec. 1070a-35. Authorization of appropriations

-STATUTE-

There are authorized to be appropriated to carry out this

division $200,000,000 for fiscal year 1999 and such sums as may be

necessary for each of the 4 succeeding fiscal years.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 407E (406E), as added Pub. L.

105-244, title IV, Sec. 404, Oct. 7, 1998, 112 Stat. 1664.)

-MISC1-

PRIOR PROVISIONS

Prior sections 1070a-35 to 1070a-37 were omitted in the general

amendment of this division by Pub. L. 105-244.

Section 1070a-35, Pub. L. 89-329, title IV, Sec. 406E, as added

Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat.

498, related to student eligibility.

Section 1070a-36, Pub. L. 89-329, title IV, Sec. 406F, as added

Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat.

499, related to early intervention scholarship agreement.

Section 1070a-37, Pub. L. 89-329, title IV, Sec. 406G, as added

Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat.

499, authorized appropriations to carry out this division.

-CITE-

20 USC Division 4 - Model Program Community Partnership

and Counseling Grants 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 4 - Model Program Community Partnership and Counseling

Grants

.

-HEAD-

Division 4 - Model Program Community Partnership and Counseling

Grants

-CITE-

20 USC Sec. 1070a-41 to 1070a-43 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 4 - Model Program Community Partnership and Counseling

Grants

-HEAD-

Sec. 1070a-41 to 1070a-43. Repealed. Pub. L. 105-244, title IV,

Sec. 405, Oct. 7, 1998, 112 Stat. 1664

-MISC1-

Section 1070a-41, Pub. L. 89-329, title IV, Sec. 408A, as added

Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat.

500, authorized grants to develop model programs.

Section 1070a-42, Pub. L. 89-329, title IV, Sec. 408B, as added

Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat.

500, related to collection and dissemination of information about

programs.

Section 1070a-43, Pub. L. 89-329, title IV, Sec. 408C, as added

Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat.

501, authorized appropriations to carry out this division.

EFFECTIVE DATE OF REPEAL

Repeal effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC Division 5 - Public Information 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 5 - Public Information

.

-HEAD-

Division 5 - Public Information

-CITE-

20 USC Sec. 1070a-51 to 1070a-53 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 5 - Public Information

-HEAD-

Sec. 1070a-51 to 1070a-53. Repealed. Pub. L. 105-244, title IV,

Sec. 405, Oct. 7, 1998, 112 Stat. 1664

-MISC1-

Section 1070a-51, Pub. L. 89-329, title IV, Sec. 409A, as added

Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat.

501; amended Pub. L. 103-208, Sec. 2(b)(24), Dec. 20, 1993, 107

Stat. 2459, authorized contract to establish and maintain database

and information line.

Section 1070a-52, Pub. L. 89-329, title IV, Sec. 409B, as added

Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat.

501, related to early awareness information program.

Section 1070a-53, Pub. L. 89-329, title IV, Sec. 409C, as added

Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat.

502, authorized appropriations to carry out this division.

EFFECTIVE DATE OF REPEAL

Repeal effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC Division 6 - National Student Savings

Demonstration Program 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 6 - National Student Savings Demonstration Program

.

-HEAD-

Division 6 - National Student Savings Demonstration Program

-CITE-

20 USC Sec. 1070a-61 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 6 - National Student Savings Demonstration Program

-HEAD-

Sec. 1070a-61. Repealed. Pub. L. 105-244, title IV, Sec. 405, Oct.

7, 1998, 112 Stat. 1664

-MISC1-

Section, Pub. L. 89-329, title IV, Sec. 410A, as added Pub. L.

102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat. 502,

related to national student savings demonstration program.

EFFECTIVE DATE OF REPEAL

Repeal effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC Division 7 - Preeligibility Form 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 7 - Preeligibility Form

.

-HEAD-

Division 7 - Preeligibility Form

-CITE-

20 USC Sec. 1070a-71 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 7 - Preeligibility Form

-HEAD-

Sec. 1070a-71. Repealed. Pub. L. 105-244, title IV, Sec. 405, Oct.

7, 1998, 112 Stat. 1664

-MISC1-

Section, Pub. L. 89-329, title IV, Sec. 410B, as added Pub. L.

102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat. 503,

related to information on eligibility for assistance.

EFFECTIVE DATE OF REPEAL

Repeal effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC Division 8 - Technical Assistance for Teachers and

Counselors 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 8 - Technical Assistance for Teachers and Counselors

.

-HEAD-

Division 8 - Technical Assistance for Teachers and Counselors

-CITE-

20 USC Sec. 1070a-81 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 2 - federal early outreach and student services programs

Division 8 - Technical Assistance for Teachers and Counselors

-HEAD-

Sec. 1070a-81. Repealed. Pub. L. 105-244, title IV, Sec. 405, Oct.

7, 1998, 112 Stat. 1664

-MISC1-

Section, Pub. L. 89-329, title IV, Sec. 410C, as added Pub. L.

102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 Stat. 504,

related to technical assistance grants.

EFFECTIVE DATE OF REPEAL

Repeal effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC subpart 3 - federal supplemental educational

opportunity grants 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 3 - federal supplemental educational opportunity grants

.

-HEAD-

subpart 3 - federal supplemental educational opportunity grants

-COD-

CODIFICATION

Pub. L. 102-325, title IV, Sec. 402(a)(2), 403(a), July 23, 1992,

106 Stat. 482, 505, redesignated subpart 2 as 3 and inserted

''Federal'' before ''Supplemental'' in heading and redesignated

former subpart 3 as 4.

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 1070, 1070a, 1078, 1087c,

1089, 1091, 1091b, 1096, 1099a-1 of this title.

-CITE-

20 USC Sec. 1070b 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 3 - federal supplemental educational opportunity grants

-HEAD-

Sec. 1070b. Purpose; appropriations authorized

-STATUTE-

(a) Purpose of subpart

It is the purpose of this subpart to provide, through

institutions of higher education, supplemental grants to assist in

making available the benefits of postsecondary education to

qualified students who demonstrate financial need in accordance

with the provisions of part E of this subchapter.

(b) Authorization of appropriations

(1) For the purpose of enabling the Secretary to make payments to

institutions of higher education which have made agreements with

the Secretary in accordance with section 1070b-2(a) of this title,

for use by such institutions for payments to undergraduate students

of supplemental grants awarded to them under this subpart, there

are authorized to be appropriated $675,000,000 for fiscal year 1999

and such sums as may be necessary for the 4 succeeding fiscal

years.

(2) Sums appropriated pursuant to this subsection for any fiscal

year shall be available for payments to institutions until the end

of the second fiscal year succeeding the fiscal year for which such

sums were appropriated.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 413A, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1328; amended Pub.

L. 102-325, title IV, Sec. 403(b), July 23, 1992, 106 Stat. 505;

Pub. L. 105-244, title IV, Sec. 406(a), Oct. 7, 1998, 112 Stat.

1664.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070b, Pub. L. 89-329, title IV, Sec. 413A, as

added Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972, 86

Stat. 251; amended Pub. L. 94-482, title I, Sec. 122(a), Oct. 12,

1976, 90 Stat. 2094; Pub. L. 96-49, Sec. 5(a)(3), Aug. 13, 1979, 93

Stat. 352; Pub. L. 96-374, title IV, Sec. 403(a), (b), title XIII,

Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1404, 1405, 1503, related

to program of supplemental educational opportunity grants purpose,

authorization of appropriations, and initial year payment

provisions, prior to the general revision of this part by Pub. L.

99-498.

AMENDMENTS

1998 - Subsec. (b)(1). Pub. L. 105-244 substituted ''1999'' for

''1993''.

1992 - Subsec. (b). Pub. L. 102-325 amended subsec. (b)

generally, substituting present provisions for provisions

authorizing appropriation of $490,000,000 for fiscal year 1987 and

such sums as necessary for 4 succeeding fiscal years.

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 1070b-3 of this title.

-CITE-

20 USC Sec. 1070b-1 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 3 - federal supplemental educational opportunity grants

-HEAD-

Sec. 1070b-1. Amount and duration of grants

-STATUTE-

(a) Amount of grant

(1) Except as provided in paragraph (3), from the funds received

by it for such purpose under this subpart, an institution which

awards a supplemental grant to a student for an academic year under

this subpart shall, for each year, pay to that student an amount

not to exceed the lesser of (A) the amount determined by the

institution, in accordance with the provisions of part E of this

subchapter, to be needed by that student to enable the student to

pursue a course of study at the institution or in a program of

study abroad that is approved for credit by the institution at

which the student is enrolled, or (B) $4,000.

(2) If the amount determined under paragraph (1) with respect to

a student for any academic year is less than $100, no payment shall

be made to that student for that year. For a student enrolled for

less than a full academic year, the minimum payment required shall

be reduced proportionately.

(3) For students participating in study abroad programs, the

institution shall consider all reasonable costs associated with

such study abroad when determining student eligibility. The amount

of grant to be awarded in such cases may exceed the maximum amount

of $4,000 by as much as $400 if reasonable study abroad costs

exceed the cost of attendance at the home institution.

(b) Period for receipt of grants; continuing eligibility

(1) The period during which a student may receive supplemental

grants shall be the period required for the completion of the first

undergraduate baccalaureate course of study being pursued by that

student.

(2) A supplemental grant awarded under this subpart shall entitle

the student (to whom it is awarded) to payments pursuant to such

grant only if the student meets the requirements of section 1091 of

this title, except as provided in section 1070b-2(c) of this title.

(c) Distribution of grant during academic year

Nothing in this section shall be construed to prohibit an

institution from making payments of varying amounts from a

supplemental grant to a student during an academic year to cover

costs for a period which are not applicable to other periods of

such academic year.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 413B, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1328; amended Pub.

L. 102-325, title IV, Sec. 403(c), July 23, 1992, 106 Stat. 505.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070b-1, Pub. L. 89-329, title IV, Sec. 413B, as

added Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972, 86

Stat. 252; amended Pub. L. 96-374, title IV, Sec. 403(c), Oct. 3,

1980, 94 Stat. 1405, related to amount and duration of supplemental

educational opportunity grants, prior to the general revision of

this part by Pub. L. 99-498.

AMENDMENTS

1992 - Subsec. (a)(1). Pub. L. 102-325, Sec. 403(c)(1),

substituted ''Except as provided in paragraph (3), from'' for

''From'' in introductory provisions and inserted ''or in a program

of study abroad that is approved for credit by the institution at

which the student is enrolled'' after ''course of study at the

institution'' in subpar. (A).

Subsec. (a)(3). Pub. L. 102-325, Sec. 403(c)(2), added par. (3).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1070b-2 of this title.

-CITE-

20 USC Sec. 1070b-2 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 3 - federal supplemental educational opportunity grants

-HEAD-

Sec. 1070b-2. Agreements with institutions; selection of recipients

-STATUTE-

(a) Institutional eligibility

Assistance may be made available under this subpart only to an

institution which -

(1) has, in accordance with section 1094 of this title, an

agreement with the Secretary applicable to this subpart;

(2) agrees that the Federal share of awards under this subpart

will not exceed 75 percent of such awards, except that the

Federal share may be exceeded if the Secretary determines,

pursuant to regulations establishing objective criteria for such

determinations, that a larger Federal share is required to

further the purpose of this subpart; and

(3) agrees that the non-Federal share of awards made under this

subpart shall be made from the institution's own resources,

including -

(A) institutional grants and scholarships;

(B) tuition or fee waivers;

(C) State scholarships; and

(D) foundation or other charitable organization funds.

(b) Eligibility for selection

Awards may be made under this subpart only to a student who -

(1) is an eligible student under section 1091 of this title;

and

(2) makes application at a time and in a manner consistent with

the requirements of the Secretary and that institution.

(c) Selection of individuals and determination of amount of awards

(1) From among individuals who are eligible for supplemental

grants for each fiscal year, the institution shall, in accordance

with the agreement under section 1094 of this title, and within the

amount allocated to the institution for that purpose for that year

under section 1070b-3 of this title, select individuals who are to

be awarded such grants and determine, in accordance with section

1070b-1 of this title, the amounts to be paid to them.

(2)(A) In carrying out paragraph (1) of this subsection, each

institution of higher education shall, in the agreement made under

section 1094 of this title, assure that the selection procedures -

(i) will be designed to award supplemental grants under this

subpart, first, to students with exceptional need, and

(ii) will give a priority for supplemental grants under this

subpart to students who receive Pell Grants and meet the

requirements of section 1091 of this title.

(B) For the purpose of subparagraph (A), the term ''students with

exceptional need'' means students with the lowest expected family

contributions at the institution.

(d) Use of funds for less-than-full-time students

If the institution's allocation under this subpart is directly or

indirectly based in part on the financial need demonstrated by

students who are independent students or attending the institution

on less than a full-time basis, then a reasonable proportion of the

allocation shall be made available to such students.

(e) Use and transfer of funds for administrative expenses

An agreement entered into pursuant to this section shall provide

that funds granted to an institution of higher education may be

used only to make payments to students participating in a grant

program authorized under this subpart, except that an institution

may use a portion of the sums allocated to it under this subpart to

meet administrative expenses in accordance with section 1096 of

this title.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 413C, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1329; amended Pub.

L. 102-325, title IV, Sec. 403(d)-(f), July 23, 1992, 106 Stat.

506; Pub. L. 103-208, Sec. 2(b)(25), Dec. 20, 1993, 107 Stat. 2459;

Pub. L. 105-244, title IV, Sec. 406(b), Oct. 7, 1998, 112 Stat.

1665.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070b-2, Pub. L. 89-329, title IV, Sec. 413C, as

added Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972, 86

Stat. 253; amended Pub. L. 94-482, title I, Sec. 122(b), Oct. 12,

1976, 90 Stat. 2094; Pub. L. 96-374, title IV, Sec. 403(d), Oct. 3,

1980, 94 Stat. 1405, related to selection of recipients of

supplemental educational opportunity grants and agreements with

institutions, prior to the general revision of this part by Pub. L.

99-498.

AMENDMENTS

1998 - Subsec. (d). Pub. L. 105-244 amended heading and text of

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

''If the institution's allocation under this subpart is directly or

indirectly based in part on the financial need demonstrated by

students who are independent students or attending the institution

less than full time and if the total financial need of all such

students attending the institution exceeds 5 percent of the total

financial need of all students attending such institution, then at

least 5 percent of such allotment shall be made available to such

students.''

1993 - Subsec. (d). Pub. L. 103-208 substituted ''and'' for '', a

reasonable proportion of the institution's allocation shall be made

available to such students, except that'' and ''5 percent of the

total financial need'' for ''5 percent of the need''.

1992 - Subsec. (a)(2). Pub. L. 102-325, Sec. 403(d), amended par.

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

''agrees that the Federal share of awards under this subpart will

not exceed -

''(A) 95 percent of such awards in fiscal year 1989,

''(B) 90 percent of such awards in fiscal year 1990, and

''(C) 85 percent of such awards in fiscal year 1991,

except that the Federal share may be exceeded if the Secretary

determines, pursuant to regulations establishing objective criteria

for such determinations, that a larger Federal share is required to

further the purpose of this subpart; and''.

Subsec. (d). Pub. L. 102-325, Sec. 403(e), inserted ''who are

independent students or'' after ''demonstrated by students'' and

inserted before period at end '', except that if the total

financial need of all such students attending the institution

exceeds 5 percent of the need of all students attending such

institution, then at least 5 percent of such allotment shall be

made available to such students''.

Subsec. (e). Pub. L. 102-325, Sec. 403(f), struck out before

period at end '', and may transfer such funds in accordance with

the provisions of section 1095 of this title''.

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 on and after July 1, 1994,

see section 5(b)(6) 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 effective July 23, 1992, except that

changes in subsec. (a)(2) of this section, relating to Federal

share for supplemental educational opportunity grant program,

applicable to funds provided for such program for award years

beginning on or after July 1, 1993, see section 410 of Pub. L.

102-325, set out as a note under section 1070a 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.

Section 401(b)(5) of Pub. L. 99-498 provided that: ''Section

413C(c)(2) of the Act (20 U.S.C. 1070b-2(c)(2)) as amended by this

section shall apply to the awarding of grants under subpart 2 of

part A of title IV of the Act (this subpart) for periods of

enrollment beginning on or after July 1, 1987.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070b, 1070b-1 of this

title.

-CITE-

20 USC Sec. 1070b-3 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 3 - federal supplemental educational opportunity grants

-HEAD-

Sec. 1070b-3. Allocation of funds

-STATUTE-

(a) Allocation based on previous allocation

(1) From the amount appropriated pursuant to section 1070b(b) of

this title for each fiscal year, the Secretary shall first allocate

to each eligible institution an amount equal to 100 percent of the

amount such institution received under subsections (a) and (b) of

this section for fiscal year 1999 (as such subsections were in

effect with respect to allocations for such fiscal year).

(2)(A) From the amount so appropriated, the Secretary shall next

allocate to each eligible institution that began participation in

the program under this subpart after fiscal year 1999 but is not a

first or second time participant, an amount equal to the greater of

-

(i) $5,000; or

(ii) 90 percent of the amount received and used under this

subpart for the first year it participated in the program.

(B) From the amount so appropriated, the Secretary shall next

allocate to each eligible institution that began participation in

the program under this subpart after fiscal year 1999 and is a

first or second time participant, an amount equal to the greatest

of -

(i) $5,000;

(ii) an amount equal to (I) 90 percent of the amount received

and used under this subpart in the second preceding fiscal year

by eligible institutions offering comparable programs of

instruction, divided by (II) the number of students enrolled at

such comparable institutions in such fiscal year, multiplied by

(III) the number of students enrolled at the applicant

institution in such fiscal year; or

(iii) 90 percent of the institution's allocation under this

part for the preceding fiscal year.

(C) Notwithstanding subparagraphs (A) and (B) of this paragraph,

the Secretary shall allocate to each eligible institution which -

(i) was a first-time participant in the program in fiscal year

2000 or any subsequent fiscal year, and

(ii) received a larger amount under this subsection in the

second year of participation,

an amount equal to 90 percent of the amount it received under this

subsection in its second year of participation.

(3)(A) If the amount appropriated for any fiscal year is less

than the amount required to be allocated to all institutions under

paragraph (1) of this subsection, then the amount of the allocation

to each such institution shall be ratably reduced.

(B) If the amount appropriated for any fiscal year is more than

the amount required to be allocated to all institutions under

paragraph (1) but less than the amount required to be allocated to

all institutions under paragraph (2), then -

(i) the Secretary shall allot the amount required to be

allocated to all institutions under paragraph (1), and

(ii) the amount of the allocation to each institution under

paragraph (2) shall be ratably reduced.

(C) If additional amounts are appropriated for any such fiscal

year, such reduced amounts shall be increased on the same basis as

they were reduced (until the amount allocated equals the amount

required to be allocated under paragraphs (1) and (2) of this

subsection).

(4)(A) Notwithstanding any other provision of this section, the

Secretary may allocate an amount equal to not more than 10 percent

of the amount by which the amount appropriated in any fiscal year

to carry out this part exceeds $700,000,000 among eligible

institutions described in subparagraph (B).

(B) In order to receive an allocation pursuant to subparagraph

(A) an institution shall be an eligible institution from which 50

percent or more of the Pell Grant recipients attending such

eligible institution graduate from or transfer to a 4-year

institution of higher education.

(b) Allocation of excess based on fair share

(1) From the remainder of the amount appropriated pursuant to

section 1070b(b) of this title for each year (after making the

allocations required by subsection (a) of this section), the

Secretary shall allocate to each eligible institution which has an

excess eligible amount an amount which bears the same ratio to such

remainder as such excess eligible amount bears to the sum of the

excess eligible amounts of all such eligible institutions (having

such excess eligible amounts).

(2) For any eligible institution, the excess eligible amount is

the amount, if any, by which -

(A)(i) the amount of that institution's need (as determined

under subsection (c) of this section), divided by (ii) the sum of

the need of all institutions (as so determined), multiplied by

(iii) the amount appropriated pursuant to section 1070b(b) of

this title of the fiscal year; exceeds

(B) the amount required to be allocated to that institution

under subsection (a) of this section.

(c) Determination of institution's need

(1) The amount of an institution's need is equal to -

(A) the sum of the need of the institution's eligible

undergraduate students; minus

(B) the sum of grant aid received by students under subparts 1

and 3 (FOOTNOTE 1) of this part.

(FOOTNOTE 1) See References in Text note below.

(2) To determine the need of an institution's eligible

undergraduate students, the Secretary shall -

(A) establish various income categories for dependent and

independent undergraduate students;

(B) establish an expected family contribution for each income

category of dependent and independent undergraduate students,

determined on the basis of the average expected family

contribution (computed in accordance with part E of this

subchapter) of a representative sample within each income

category for the second preceding fiscal year;

(C) compute 75 percent of the average cost of attendance for

all undergraduate students;

(D) multiply the number of eligible dependent students in each

income category by 75 percent of the average cost of attendance

for all undergraduate students determined under subparagraph (C),

minus the expected family contribution determined under

subparagraph (B) for that income category, except that the amount

computed by such subtraction shall not be less than zero;

(E) add the amounts determined under subparagraph (D) for each

income category of dependent students;

(F) multiply the number of eligible independent students in

each income category by 75 percent of the average cost of

attendance for all undergraduate students determined under

subparagraph (C), minus the expected family contribution

determined under subparagraph (B) for that income category,

except that the amount computed by such subtraction shall not be

less than zero;

(G) add the amounts determined under subparagraph (F) for each

income category of independent students; and

(H) add the amounts determined under subparagraphs (E) and (G).

(3)(A) For purposes of paragraph (2), the term ''average cost of

attendance'' means the average of the attendance costs for

undergraduate students, which shall include (i) tuition and fees

determined in accordance with subparagraph (B), (ii) standard

living expenses determined in accordance with subparagraph (C), and

(iii) books and supplies determined in accordance with subparagraph

(D).

(B) The average undergraduate tuition and fees described in

subparagraph (A)(i) shall be computed on the basis of information

reported by the institution to the Secretary, which shall include

(i) total revenue received by the institution from undergraduate

tuition and fees for the second year preceding the year for which

it is applying for an allocation, and (ii) the institution's

enrollment for such second preceding year.

(C) The standard living expense described in subparagraph (A)(ii)

is equal to 150 percent of the difference between the income

protection allowance for a family of five with one in college and

the income protection allowance for a family of six with one in

college for a single independent student.

(D) The allowance for books and supplies described in

subparagraph (A)(iii) is equal to $450.

(d) Reallocation of excess allocations

(1) If an institution returns to the Secretary any portion of the

sums allocated to such institution under this section for any

fiscal year the Secretary shall, in accordance with regulations,

reallocate such excess to other institutions.

(2) If under paragraph (1) of this subsection an institution

returns more than 10 percent of its allocation, the institution's

allocation for the next fiscal year shall be reduced by the amount

returned. The Secretary may waive this paragraph for a specific

institution if the Secretary finds that enforcing this paragraph

would be contrary to the interest of the program.

(e) Filing deadlines

The Secretary shall, from time to time, set dates before which

institutions must file applications for allocations under this

part.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 413D, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1330; amended Pub.

L. 100-50, Sec. 4, June 3, 1987, 101 Stat. 340; Pub. L. 102-325,

title IV, Sec. 403(g), (h), July 23, 1992, 106 Stat. 506; Pub. L.

103-208, Sec. 2(b)(26), Dec. 20, 1993, 107 Stat. 2459; Pub. L.

105-244, title IV, Sec. 406(c)(1), (2), Oct. 7, 1998, 112 Stat.

1665.)

-REFTEXT-

REFERENCES IN TEXT

Subpart 3 of this part, referred to in subsec. (c)(1)(B), was

redesignated subpart 4 by Pub. L. 102-325, title IV, Sec.

402(a)(2), July 23, 1992, 106 Stat. 482, and former subpart 2 (this

subpart) was redesignated as subpart 3.

-MISC2-

PRIOR PROVISIONS

A prior section 1070b-3, Pub. L. 89-329, title IV, Sec. 413D, as

added Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972, 86

Stat. 254; amended Pub. L. 96-374, title IV, Sec. 403(e), (f),

title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1405, 1406,

1503, related to apportionment and allocation of funds for

supplemental educational opportunity grants, prior to the general

revision of this part by Pub. L. 99-498.

AMENDMENTS

1998 - Subsec. (a)(1). Pub. L. 105-244, Sec. 406(c)(1)(A), which

directed substitution of ''received under subsections (a) and (b)

of this section for fiscal year 1999 (as such subsections were in

effect with respect to allocations for such fiscal year)'' for

''received and used under this part for fiscal year 1985'', was

executed by making the substitution for ''received and used under

this subpart for fiscal year 1985'' to reflect the probable intent

of Congress.

Subsec. (a)(2)(A), (B). Pub. L. 105-244, Sec. 406(c)(1)(B)(i),

substituted ''1999'' for ''1985'' in introductory provisions.

Subsec. (a)(2)(C)(i). Pub. L. 105-244, Sec. 406(c)(1)(B)(ii),

substituted ''2000'' for ''1986''.

Subsec. (b). Pub. L. 105-244, Sec. 406(c)(2)(A), (D),

redesignated subsec. (c) as (b) and struck out heading and text of

former subsec. (b). Text read as follows: ''From one-quarter of the

remainder of the amount appropriated pursuant to section 1070b(b)

of this title for any fiscal year (after making the allocations

required by subsection (a) of this section), the Secretary shall

allocate to each eligible institution an amount which bears the

same ratio to such one-quarter as the amount the eligible

institution receives for such fiscal year under subsection (a) of

this section bears to the amount all such institutions receive

under such subsection (a) of this section.''

Subsec. (c). Pub. L. 105-244, Sec. 406(c)(2)(D), redesignated

subsec. (d) as (c). Former subsec. (c) redesignated (b).

Subsec. (c)(1). Pub. L. 105-244, Sec. 406(c)(2)(B), substituted

''the remainder'' for ''three-quarters of the remainder''.

Subsec. (c)(2)(A)(i). Pub. L. 105-244, Sec. 406(c)(2)(C),

substituted ''subsection (c)'' for ''subsection (d)''.

Subsecs. (d) to (f). Pub. L. 105-244, Sec. 406(c)(2)(D),

redesignated subsecs. (e) and (f) as (d) and (e), respectively.

Former subsec. (d) redesignated (c).

1993 - Subsec. (d)(3)(C). Pub. L. 103-208 substituted ''150

percent of the difference between the income protection allowance

for a family of five with one in college and the income protection

allowance for a family of six with one in college'' for

''three-fourths in the Pell Grant family size offset''.

1992 - Subsec. (a)(4). Pub. L. 102-325, Sec. 403(g), added par.

(4).

Subsec. (e). Pub. L. 102-325, Sec. 403(h), designated existing

provisions as par. (1) and added par. (2).

1987 - Subsec. (d)(2)(D). Pub. L. 100-50, Sec. 4(a)(1), added

subpar. (D) and struck out former subpar. (D) which read as

follows: ''multiply the number of eligible dependent students in

each income category by the lesser of -

''(i) 75 percent of the average cost of attendance for all

undergraduate students determined under subparagraph (C); or

''(ii) the average cost of attendance for all undergraduate

students minus the expected family contribution determined under

subparagraph (B) for that income category, except that the amount

computed by such subtraction shall not be less than zero;''.

Subsec. (d)(2)(F). Pub. L. 100-50, Sec. 4(a)(2), added subpar.

(F) and struck out former subpar. (F) which read as follows:

''multiply the number of eligible independent students in each

income category by the lesser of -

''(i) 75 percent of the average cost of attendance for all

undergraduate students determined under subparagraph (C); or

''(ii) the average cost of attendance for all undergraduate

students minus the expected family contribution determined under

subparagraph (B) for that income category, except that the amount

computed by such subtraction for any income category shall not be

less than zero;''.

Subsec. (d)(3)(A). Pub. L. 100-50, Sec. 4(b)(1), struck out ''and

for graduate and professional students'' after ''undergraduate

students''.

Subsec. (d)(3)(B). Pub. L. 100-50, Sec. 4(b)(2), struck out ''and

graduate and professional'' after ''average undergraduate'' and

struck out ''and graduate'' after ''from undergraduate''.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-244, title IV, Sec. 406(c)(3), Oct. 7, 1998, 112

Stat. 1665, provided that: ''The amendments made by this subsection

(amending this section) shall apply with respect to allocations of

amounts appropriated pursuant to section 413A(b) of the Higher

Education Act of 1965 (20 U.S.C. 1070b(b)) for fiscal year 2000 or

any succeeding fiscal year.''

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 401(b)(6) of Pub. L. 99-498, as added by Pub. L. 100-50,

Sec. 22(a)(2), June 3, 1987, 101 Stat. 361, provided that: ''The

changes made in section 413D of the Act (this section) shall apply

with respect to the allocation of funds for the academic year

1988-1989 and succeeding academic years.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1070b-2, 1089, 1095 of

this title.

-CITE-

20 USC Sec. 1070b-4 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 3 - federal supplemental educational opportunity grants

-HEAD-

Sec. 1070b-4. Carryover and carryback authority

-STATUTE-

(a) Carryover authority

Of the sums made available to an eligible institution under this

subpart for a fiscal year, not more than 10 percent may, at the

discretion of the institution, remain available for expenditure

during the succeeding fiscal year to carry out the program under

this subpart.

(b) Carryback authority

(1) In general

Of the sums made available to an eligible institution under

this subpart for a fiscal year, not more than 10 percent may, at

the discretion of the institution, be used by the institution for

expenditure for the fiscal year preceding the fiscal year for

which the sums were appropriated.

(2) Use of carried-back funds

An eligible institution may make grants to students after the

end of the academic year, but prior to the beginning of the

succeeding fiscal year, from such succeeding fiscal year's

appropriations.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 413E, as added Pub. L. 105-244,

title IV, Sec. 406(d), Oct. 7, 1998, 112 Stat. 1665.)

-MISC1-

EFFECTIVE DATE

Section effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC subpart 4 - leveraging educational assistance

partnership program 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 4 - leveraging educational assistance partnership program

.

-HEAD-

subpart 4 - leveraging educational assistance partnership program

-COD-

CODIFICATION

Pub. L. 105-244, title IV, Sec. 407(a)(1), Oct. 7, 1998, 112

Stat. 1666, amended heading generally.

Pub. L. 102-325, title IV, Sec. 402(a)(1), (2), July 23, 1992,

106 Stat. 482, redesignated former subpart 3 as 4 and repealed

former subpart 4, comprising sections 1070d to 1070d-1d, which

authorized special programs for students from disadvantaged

backgrounds.

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 1070, 1070a, 1070a-21,

1070a-24, 1087vv, 1090, 1091, 1094 of this title.

-CITE-

20 USC Sec. 1070c 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 4 - leveraging educational assistance partnership program

-HEAD-

Sec. 1070c. Purpose; appropriations authorized

-STATUTE-

(a) Purpose of subpart

It is the purpose of this subpart to make incentive grants

available to States to assist States in -

(1) providing grants to -

(A) eligible students attending institutions of higher

education or participating in programs of study abroad that are

approved for credit by institutions of higher education at

which such students are enrolled; and

(B) eligible students for campus-based community service

work-study; and

(2) carrying out the activities described in section 1070c-3a

of this title.

(b) Authorization of appropriations; availability

(1) In general

There are authorized to be appropriated $105,000,000 for fiscal

year 1999, and such sums as may be necessary for each of the 4

succeeding fiscal years.

(2) Reservation

For any fiscal year for which the amount appropriated under

paragraph (1) exceeds $30,000,000, the excess shall be available

to carry out section 1070c-3a of this title.

(3) Availability

Sums appropriated pursuant to the authority of paragraph (1)

for any fiscal year shall remain available for payments to States

under this subpart until the end of the fiscal year succeeding

the fiscal year for which such sums were appropriated.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 415A, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1332; amended Pub.

L. 102-325, title IV, Sec. 404(a), July 23, 1992, 106 Stat. 506;

Pub. L. 105-244, title IV, Sec. 407(b), (c)(1), Oct. 7, 1998, 112

Stat. 1666, 1667; Pub. L. 106-554, Sec. 1(a)(1) (title III, Sec.

316(1)), Dec. 21, 2000, 114 Stat. 2763, 2763A-47.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070c, Pub. L. 89-329, title IV, Sec. 415A, as

added Pub. L. 92-318, title I Sec. 131(b)(1), June 23, 1972, 86

Stat. 255; amended Pub. L. 94-482, title I, Sec. 123(a), (c)(1),

Oct. 12, 1976, 90 Stat. 2094; Pub. L. 95-43, Sec. 1(b)(3), June 15,

1977, 91 Stat. 218; Pub. L. 96-49, Sec. 5(a)(4), Aug. 13, 1979, 93

Stat. 352; Pub. L. 96-374, title IV, Sec. 404(a), Oct. 3, 1980, 94

Stat. 1406, related to purpose and authorization of appropriations

for grants to States for State student incentives, prior to the

general revision of this part by Pub. L. 99-498.

AMENDMENTS

2000 - Subsec. (a)(2). Pub. L. 106-554, which directed amendment

of section 415 of the Higher Education Act of 1965 in section

415A(a)(2) by substituting ''section 1070c-3a of this title'' for

''section 1070c-4 of this title'', was executed by making the

substitution in subsec. (a)(2) of this section, which is section

415A of the Higher Education Act of 1965, to reflect the probable

intent of Congress.

1998 - Subsec. (a). Pub. L. 105-244, Sec. 407(c)(1), amended

heading and text of subsec. (a) generally. Prior to amendment,

text read as follows: ''It is the purpose of this subpart to make

incentive grants available to States to assist States in providing

grants to -

''(1) eligible students attending institutions of higher

education or participating in programs of study abroad that are

approved for credit by institutions of higher education at which

such students are enrolled; and

''(2) eligible students for campus-based community service

work-study.''

Subsec. (b)(1). Pub. L. 105-244, Sec. 407(b)(1), substituted

''1999'' for ''1993''.

Subsec. (b)(2), (3). Pub. L. 105-244, Sec. 407(b)(2), (3), added

par. (2) and redesignated former par. (2) as (3).

1992 - Pub. L. 102-325 amended section generally. Prior to

amendment, section read as follows:

''(a) Purpose of Subpart. - It is the purpose of this subpart to

make incentive grants available to the States to assist them in

providing grants to eligible students attending institutions of

higher education and grants to eligible students for campus-based

community service work learning study.

''(b) Authorization of Appropriations; Availability. - (1) There

are authorized to be appropriated $85,000,000 for fiscal year 1987,

and such sums as may be necessary for the 4 succeeding fiscal

years.

''(2) Sums appropriated pursuant to paragraph (1) for any fiscal

year shall remain available for payments to States under this

subpart until the end of the fiscal year succeeding the fiscal year

for which such sums were appropriated.''

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 sections 1070c-1, 1070c-3a of this

title.

-CITE-

20 USC Sec. 1070c-1 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 4 - leveraging educational assistance partnership program

-HEAD-

Sec. 1070c-1. Allotment among States

-STATUTE-

(a) Allotment based on number of eligible students in attendance

(1) From the sums appropriated pursuant to section 1070c(b)(1) of

this title and not reserved under section 1070c(b)(2) of this title

for any fiscal year, the Secretary shall allot to each State an

amount which bears the same ratio to such sums as the number of

students who are deemed eligible in such State for participation in

the grant program authorized by this subpart bears to the total

number of such students in all the States, except that no State

shall receive less than the State received for fiscal year 1979.

(2) For the purpose of this subsection, the number of students

who are deemed eligible in a State for participation in the grant

program authorized by this subpart, and the number of such students

in all the States, shall be determined for the most recent year for

which satisfactory data are available.

(b) Reallotment

The amount of any State's allotment under subsection (a) of this

section for any fiscal year which the Secretary determines will not

be required for such fiscal year for the leveraging educational

assistance partnership program of that State shall be available for

reallotment from time to time, on such dates during such year as

the Secretary may fix, to other States in proportion to the

original allotments to such States under such part for such year,

but with such proportionate amount for any of such States being

reduced to the extent it exceeds the sum the Secretary estimates

such State needs and will be able to use for such year for carrying

out the State plan. The total of such reductions shall be

similarly reallotted among the States whose proportionate amounts

were not so reduced. Any amount reallotted to a State under this

part during a year from funds appropriated pursuant to section

1070c(b)(1) of this title shall be deemed part of its allotment

under subsection (a) of this section for such year.

(c) Allotments subject to continuing compliance

The Secretary shall make payments for continuing incentive grants

only to States which continue to meet the requirements of section

1070c-2(b) of this title.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 415B, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1333; amended Pub.

L. 105-244, title IV, Sec. 407(a)(2)(A), (c)(2), Oct. 7, 1998, 112

Stat. 1666, 1667.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070c-1, Pub. L. 89-329, title IV, Sec. 415B, as

added Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972, 86

Stat. 256; amended Pub. L. 94-482, title I, Sec. 123(c)(2), Oct.

12, 1976, 90 Stat. 2094; Pub. L. 96-374, title IV, Sec. 404(b),

title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1407, 1503,

related to allotment among States of amounts for grants to States

for State student incentives, prior to the general revision of this

part by Pub. L. 99-498.

AMENDMENTS

1998 - Subsec. (a)(1). Pub. L. 105-244, Sec. 407(c)(2), inserted

''and not reserved under section 1070c(b)(2) of this title'' after

''1070c(b)(1) of this title''.

Subsec. (b). Pub. L. 105-244, Sec. 407(a)(2)(A), substituted

''leveraging educational assistance partnership'' for ''State

student grant incentive''.

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. 1070c-2 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 4 - leveraging educational assistance partnership program

-HEAD-

Sec. 1070c-2. Applications for leveraging educational assistance

partnership programs

-STATUTE-

(a) Submission and contents of applications

A State which desires to obtain a payment under this subpart for

any fiscal year shall submit annually an application therefor

through the State agency administering its program under this

subpart as of July 1, 1985, unless the Governor of that State so

designates, in writing, a different agency to administer the

program. The application shall contain such information as may be

required by, or pursuant to, regulation for the purpose of enabling

the Secretary to make the determinations required under this

subpart.

(b) Payment of Federal share of grants made by qualified program

From a State's allotment under this subpart for any fiscal year

the Secretary is authorized to make payments to such State for

paying up to 50 percent of the amount of student grants pursuant to

a State program which -

(1) is administered by a single State agency;

(2) provides that such grants will be in amounts not in excess

of $5,000 per academic year (A) for attendance on a full-time

basis at an institution of higher education, and (B) for

campus-based community service work learning study jobs;

(3) provides that -

(A) not more than 20 percent of the allotment to the State

for each fiscal year may be used for the purpose described in

paragraph (2)(B);

(B) grants for the campus-based community work learning study

jobs may be made only to students who are otherwise eligible

for assistance under this subpart; and

(C) grants for such jobs be made in accordance with the

provisions of section 2753(b)(1) of title 42;

(4) provides for the selection of recipients of such grants or

of such State work-study jobs on the basis of substantial

financial need determined annually on the basis of criteria

established by the State and approved by the Secretary, except

that for the purpose of collecting data to make such

determination of financial need, no student or parent shall be

charged a fee that is payable to an entity other than such State;

(5) provides that, effective with respect to any academic year

beginning on or after October 1, 1978, all nonprofit institutions

of higher education in the State are eligible to participate in

the State program, except in any State in which participation of

nonprofit institutions of higher education is in violation of the

constitution of the State or in any State in which participation

of nonprofit institutions of higher education is in violation of

a statute of the State which was enacted prior to October 1,

1978;

(6) provides for the payment of the non-Federal portion of such

grants or of such work-study jobs from funds supplied by such

State which represent an additional expenditure for such year by

such State for grants or work-study jobs for students attending

institutions of higher education over the amount expended by such

State for such grants or work-study jobs, if any, during the

second fiscal year preceding the fiscal year in which such State

initially received funds under this subpart;

(7) provides that if the State's allocation under this subpart

is based in part on the financial need demonstrated by students

who are independent students or attending the institution less

than full time, a reasonable proportion of the State's allocation

shall be made available to such students;

(8) provides for State expenditures under such program of an

amount not less than the average annual aggregate expenditures

for the preceding three fiscal years or the average annual

expenditure per full-time equivalent student for such years;

(9) provides (A) for such fiscal control and fund accounting

procedures as may be necessary to assure proper disbursement of

and accounting for Federal funds paid to the State agency under

this subpart, and (B) for the making of such reports, in such

form and containing such information, as may be reasonably

necessary to enable the Secretary to perform his functions under

this subpart; and

(10) for any academic year beginning after June 30, 1987,

provides the non-Federal share of the amount of student grants or

work-study jobs under this subpart through a direct appropriation

of State funds for the program under this subpart.

(c) Reservation and disbursement of allotments and reallotments

Upon his approval of any application for a payment under this

subpart, the Secretary shall reserve from the applicable allotment

(including any applicable reallotment) available therefor, the

amount of such payment, which (subject to the limits of such

allotment or reallotment) shall be equal to the Federal share of

the cost of the students' incentive grants or work-study jobs

covered by such application. The Secretary shall pay such reserved

amount, in advance or by way of reimbursement, and in such

installments as the Secretary may determine. The Secretary may

amend the reservation of any amount under this section, either upon

approval of an amendment of the application or upon revision of the

estimated cost of the student grants or work-study jobs with

respect to which such reservation was made. If the Secretary

approves an upward revision of such estimated cost, the Secretary

may reserve the Federal share of the added cost only from the

applicable allotment (or reallotment) available at the time of such

approval.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 415C, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1333; amended Pub.

L. 102-325, title IV, Sec. 404(b)-(d), July 23, 1992, 106 Stat.

507; Pub. L. 103-208, Sec. 2(b)(27), Dec. 20, 1993, 107 Stat. 2459;

Pub. L. 105-244, title IV, Sec. 407(a)(2)(B), Oct. 7, 1998, 112

Stat. 1666.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070c-2, Pub. L. 89-329, title IV, Sec. 415C, as

added Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972, 86

Stat. 256; amended Pub. L. 94-482, title I, Sec. 123(b), Oct. 12,

1976, 90 Stat. 2094; Pub. L. 95-43, Sec. 1(a)(6), June 15, 1977, 91

Stat. 213; Pub. L. 95-566, Sec. 3, Nov. 1, 1978, 92 Stat. 2403;

Pub. L. 96-374, title IV, Sec. 404(c), title XIII, Sec. 1391(a)(1),

(2), Oct. 3, 1980, 94 Stat. 1407, 1503, related to payment of

grants to States for State student incentives, prior to the general

revision of this part by Pub. L. 99-498.

AMENDMENTS

1998 - Pub. L. 105-244 substituted ''leveraging educational

assistance partnership'' for ''State student incentive grant'' in

section catchline.

1993 - Subsec. (b)(7). Pub. L. 103-208 substituted a semicolon

for period at end.

1992 - Subsec. (b)(2). Pub. L. 102-325, Sec. 404(b), substituted

''$5,000'' for ''$2,500''.

Subsec. (b)(4). Pub. L. 102-325, Sec. 404(c), inserted before

semicolon at end '', except that for the purpose of collecting data

to make such determination of financial need, no student or parent

shall be charged a fee that is payable to an entity other than such

State''.

Subsec. (b)(7). Pub. L. 102-325, Sec. 404(d), amended par. (7)

generally. Prior to amendment, par. (7) read as follows:

''provides that, if the institution's allocation under this subpart

is based in part on the financial need demonstrated by students

attending the institution less than full time, a reasonable

proportion of the institution's allocation shall be made available

to such students;''.

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 1070c-1, 1070c-3,

1070c-3a of this title.

-CITE-

20 USC Sec. 1070c-3 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 4 - leveraging educational assistance partnership program

-HEAD-

Sec. 1070c-3. Administration of State programs; judicial review

-STATUTE-

(a) Disapproval of applications; suspension of eligibility

(1) The Secretary shall not finally disapprove any application

for a State program submitted under section 1070c-2 of this title,

or any modification thereof, without first affording the State

agency submitting the program reasonable notice and opportunity for

a hearing.

(2) Whenever the Secretary, after reasonable notice and

opportunity for hearing to the State agency administering a State

program approved under this subpart, finds -

(A) that the State program has been so changed that it no

longer complies with the provisions of this subpart, or

(B) that in the administration of the program there is a

failure to comply substantially with any such provisions,

the Secretary shall notify such State agency that the State will

not be regarded as eligible to participate in the program under

this subpart until he is satisfied that there is no longer any such

failure to comply.

(b) Review of decisions

(1) If any State is dissatisfied with the Secretary's final

action with respect to the approval of its State program submitted

under this subpart or with his final action under subsection (a) of

this section, such State may appeal to the United States court of

appeals for the circuit in which such State is located. The

summons and notice of appeal may be served at any place in the

United States. The Commissioner shall forthwith certify and file in

the court the transcript of the proceedings and the record on which

he based his action.

(2) The findings of fact by the Secretary, if supported by

substantial evidence, shall be conclusive; but the court, for good

cause shown, may remand the case to the Secretary to take further

evidence, and the Secretary may thereupon make new or modified

findings of fact and may modify his previous action, and shall

certify to the court the transcript and record of further

proceedings. Such new or modified findings of fact shall likewise

be conclusive if supported by substantial evidence.

(3) The court shall have jurisdiction to affirm the action of the

Secretary or to set it aside, in whole or in part. The judgment of

the court shall be subject to review by the Supreme Court of the

United States upon certiorari or certification as provided in title

28, section 1254.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 415D, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1335.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070c-3, Pub. L. 89-329, title IV, Sec. 415D, as

added Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972, 86

Stat. 257; amended Pub. L. 96-374, title XIII, Sec. 1391(a)(1),

(2), Oct. 3, 1980, 94 Stat. 1503, related to administration of

State programs and judicial review, prior to the general revision

of this part by Pub. L. 99-498.

-CITE-

20 USC Sec. 1070c-3a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 4 - leveraging educational assistance partnership program

-HEAD-

Sec. 1070c-3a. Special leveraging educational assistance

partnership program

-STATUTE-

(a) In general

From amounts reserved under section 1070c(b)(2) of this title for

each fiscal year, the Secretary shall -

(1) make allotments among States in the same manner as the

Secretary makes allotments among States under section 1070c-1 of

this title; and

(2) award grants to States, from allotments under paragraph

(1), to enable the States to pay the Federal share of the cost of

the authorized activities described in subsection (c) of this

section.

(b) Applicability rule

The provisions of this subpart which are not inconsistent with

this section shall apply to the program authorized by this section.

(c) Authorized activities

Each State receiving a grant under this section may use the grant

funds for -

(1) making awards that -

(A) supplement grants received under section 1070c-2(b)(2) of

this title by eligible students who demonstrate financial need;

or

(B) provide grants under section 1070c-2(b)(2) of this title

to additional eligible students who demonstrate financial need;

(2) providing scholarships for eligible students -

(A) who demonstrate financial need; and

(B) who -

(i) desire to enter a program of study leading to a career

in -

(I) information technology;

(II) mathematics, computer science, or engineering;

(III) teaching; or

(IV) another field determined by the State to be critical

to the State's workforce needs; or

(ii) demonstrate merit or academic achievement; and

(3) making awards that -

(A) supplement community service work-study awards received

under section 1070c-2(b)(2) of this title by eligible students

who demonstrate financial need; or

(B) provide community service work-study awards under section

1070c-2(b)(2) of this title to additional eligible students who

demonstrate financial need.

(d) Maintenance of effort requirement

Each State receiving a grant under this section for a fiscal year

shall provide the Secretary an assurance that the aggregate amount

expended per student or the aggregate expenditures by the State,

from funds derived from non-Federal sources, for the authorized

activities described in subsection (c) of this section for the

preceding fiscal year were not less than the amount expended per

student or the aggregate expenditures by the State for the

activities for the second preceding fiscal year.

(e) Federal share

The Federal share of the cost of the authorized activities

described in subsection (c) of this section for any fiscal year

shall be not more than 33 1/3 percent.

(f) Special rule

Notwithstanding subsection (d) of this section, for purposes of

determining a State's share of the cost of the authorized

activities described in subsection (c) of this section, the State

shall consider only those expenditures from non-Federal sources

that exceed its total expenditures for need-based grants,

scholarships, and work-study assistance for fiscal year 1999

(including any such assistance provided under this subpart).

(g) Use of funds for administrative costs prohibited

A State receiving a grant under this section shall not use any of

the grant funds to pay administrative costs associated with any of

the authorized activities described in subsection (c) of this

section.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 415E, as added Pub. L. 105-244,

title IV, Sec. 407(c)(2), Oct. 7, 1998, 112 Stat. 1666; amended

Pub. L. 106-554, Sec. 1(a)(1) (title III, Sec. 316(2), (3)), Dec.

21, 2000, 114 Stat. 2763, 2763A-47.)

-MISC1-

PRIOR PROVISIONS

A prior section 415E of Pub. L. 89-329 was renumbered section

415F and is classified to section 1070c-4 of this title.

Another prior section 415E of Pub. L. 89-329 was classified to

section 1070c-4 of this title prior to repeal by Pub. L. 96-374.

AMENDMENTS

2000 - Subsec. (c). Pub. L. 106-554, Sec. 1(a)(1) (title III,

Sec. 316(2)), which directed amendment of section 415 of the Higher

Education Act of 1965 in section 415E by adding subsec. (c) and

striking out former subsec. (c), was executed to this section,

which is section 415E of the Higher Education Act of 1965, to

reflect the probable intent of Congress. Prior to amendment,

subsec. (c) listed the activities for which States receiving a

grant under this section were authorized to use the grant funds.

Subsecs. (f), (g). Pub. L. 106-554, Sec. 1(a)(1) (title III, Sec.

316(3)), which directed amendment of section 415 of the Higher

Education Act of 1965 in section 415E by adding subsecs. (f) and

(g), was executed by adding subsecs. (f) and (g) to this section,

which is section 415E of the Higher Education Act of 1965, to

reflect the probable intent of Congress.

EFFECTIVE DATE

Section effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1070c of this title.

-CITE-

20 USC Sec. 1070c-4 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 4 - leveraging educational assistance partnership program

-HEAD-

Sec. 1070c-4. ''Community service'' defined

-STATUTE-

For the purpose of this subpart, the term ''community service''

means services, including direct service, planning, and applied

research which are identified by an institution of higher

education, through formal or informal consultation with local

nonprofit, governmental, and community-based organizations, and

which -

(1) are designed to improve the quality of life for community

residents, particularly low-income individuals, or to solve

particular problems related to the needs of such residents,

including but not limited to, such fields as health care, child

care, education, literacy training, welfare, social services,

public safety, crime prevention and control, transportation,

recreation, housing and neighborhood improvement, rural

development, and community improvement; and

(2) provide participating students with work-learning

opportunities related to their educational or vocational programs

or goals.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 415F, formerly Sec. 415E, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1336; amended Pub. L. 100-50, Sec. 5, June 3, 1987, 101 Stat. 340;

renumbered Sec. 415F, Pub. L. 105-244, title IV, Sec. 407(c)(1),

Oct. 7, 1998, 112 Stat. 1666.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070c-4, Pub. L. 89-329, title IV, Sec. 415E, as

added Pub. L. 94-482, title I, Sec. 123(c)(3), Oct. 12, 1976, 90

Stat. 2094; amended Pub. L. 95-43, Sec. 1(a)(7), June 15, 1977, 91

Stat. 213, related to a program of bonus allotments, prior to

repeal by Pub. L. 96-374, title IV, Sec. 404(d), Oct. 3, 1980, 94

Stat. 1407, eff. Oct. 1, 1980.

AMENDMENTS

1987 - Par. (1). Pub. L. 100-50 substituted ''literacy'' for

''literary''.

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. 1070d to 1070d-1d 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 4 - leveraging educational assistance partnership program

-HEAD-

Sec. 1070d to 1070d-1d. Repealed. Pub. L. 102-325, title IV, Sec.

402(a)(1), July 23, 1992, 106 Stat. 482

-MISC1-

Section 1070d, Pub. L. 89-329, title IV, Sec. 417A, as added Pub.

L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1336,

related to program authority and authorization of appropriations.

A prior section 1070d, Pub. L. 89-329, title IV, Sec. 417A, as

added Pub. L. 96-374, title IV, Sec. 405, Oct. 3, 1980, 94 Stat.

1407, authorized a program of grants and contracts to assist

students from disadvantaged backgrounds, prior to the general

revision of this part by Pub. L. 99-498.

Another prior section 1070d, Pub. L. 89-329, title IV, Sec. 417A,

as added Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 1972, 86

Stat. 258; amended Pub. L. 94-482, title I, Sec. 124(a), Oct. 12,

1976, 90 Stat. 2094; Pub. L. 96-49, Sec. 5(a)(5), Aug. 13, 1979, 93

Stat. 352; Pub. L. 96-374, title XIII, Sec. 1391(a)(1), Oct. 3,

1980, 94 Stat. 1503, authorized the Secretary of Education to carry

out special programs for students from disadvantaged backgrounds

and authorized appropriations for such programs, prior to the

general revision of this subpart by Pub. L. 96-374.

Section 1070d-1, Pub. L. 89-329, title IV, Sec. 417B, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1337, authorized a talent search program.

A prior section 1070d-1, Pub. L. 89-329, title IV, Sec. 417B, as

added Pub. L. 96-374, title IV, Sec. 405, Oct. 3, 1980, 94 Stat.

1408, authorized a talent search program, prior to the general

revision of this part by Pub. L. 99-498.

Another prior section 1070d-1, Pub. L. 89-329, title IV, Sec.

417B, as added Pub. L. 92-318, title I, Sec. 131(b)(1), June 23,

1972, 86 Stat. 258; amended Pub. L. 93-380, title VIII, Sec.

833(a), Aug. 21, 1974, 88 Stat. 603; Pub. L. 94-482, title I, Sec.

124(b), (c), Oct. 12, 1976, 90 Stat. 2094, 2095; Pub. L. 95-566,

Sec. 4, Nov. 1, 1978, 92 Stat. 2403; Pub. L. 96-374, title XIII,

Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1503, specified the

authorized activities of the Secretary of Education in carrying out

special programs for students from disadvantaged backgrounds, prior

to the general revision of this subpart by Pub. L. 96-374.

Section 1070d-1a, Pub. L. 89-329, title IV, Sec. 417C, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1338, authorized an upward bound program.

A prior section 1070d-1a, Pub. L. 89-329, title IV, Sec. 417C, as

added Pub. L. 96-374, title IV, Sec. 405, Oct. 3, 1980, 94 Stat.

1409, authorized an upward bound program, prior to the general

revision of this part by Pub. L. 99-498.

Section 1070d-1b, Pub. L. 89-329, title IV, Sec. 417D, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1339; amended Pub. L. 100-50, Sec. 6, June 3, 1987, 101 Stat. 340;

Pub. L. 100-418, title VI, Sec. 6271, Aug. 23, 1988, 102 Stat.

1523, related to student support services program.

A prior section 1070d-1b, Pub. L. 89-329, title IV, Sec. 417D, as

added Pub. L. 96-374, title IV, Sec. 405, Oct. 3, 1980, 94 Stat.

1410, authorized a special services for disadvantaged students

program, prior to the general revision of this part by Pub. L.

99-498.

Section 1070d-1c, Pub. L. 89-329, title IV, Sec. 417E, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1340, authorized an educational opportunity centers program.

A prior section 1070d-1c, Pub. L. 89-329, title IV, Sec. 417E, as

added Pub. L. 96-374, title IV, Sec. 405, Oct. 3, 1980, 94 Stat.

1410, authorized an educational opportunity centers program, prior

to the general revision of this part by Pub. L. 99-498.

Section 1070d-1d, Pub. L. 89-329, title IV, Sec. 417F, as added

Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat.

1341, related to staff development activities.

A prior section 1070d-1d, Pub. L. 89-329, title IV, Sec. 417F, as

added Pub. L. 96-374, title IV, Sec. 405, Oct. 3, 1980, 94 Stat.

1411, authorized grants for staff training, prior to the general

revision of this part by Pub. L. 99-498.

-CITE-

20 USC subpart 5 - special programs for students whose

families are engaged in migrant and

seasonal farmwork 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 5 - special programs for students whose families are

engaged in migrant and seasonal farmwork

.

-HEAD-

subpart 5 - special programs for students whose families are

engaged in migrant and seasonal farmwork

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 1070, 3414 of this title.

-CITE-

20 USC Sec. 1070d-2 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 5 - special programs for students whose families are

engaged in migrant and seasonal farmwork

-HEAD-

Sec. 1070d-2. Maintenance and expansion of existing programs

-STATUTE-

(a) Program authority

The Secretary shall maintain and expand existing secondary and

postsecondary high school equivalency program and college

assistance migrant program projects located at institutions of

higher education or at private nonprofit organizations working in

cooperation with institutions of higher education.

(b) Services provided by high school equivalency program

The services authorized by this subpart for the high school

equivalency program include -

(1) recruitment services to reach persons -

(A)(i) who are 16 years of age and over; or

(ii) who are beyond the age of compulsory school attendance

in the State in which such persons reside and are not enrolled

in school;

(B)(i) who themselves, or whose parents, have spent a minimum

of 75 days during the past 24 months in migrant and seasonal

farmwork; or

(ii) who are eligible to participate, or have participated

within the preceding 2 years, in programs under part C of title

I of the Elementary and Secondary Education Act of 1965 (20

U.S.C. 6391 et seq.) or section 2912 of title 29; and

(C) who lack a high school diploma or its equivalent;

(2) educational services which provide instruction designed to

help students obtain a general education diploma which meets the

guidelines established by the State in which the project is

located for high school equivalency;

(3) supportive services which include the following:

(A) personal, vocational, and academic counseling;

(B) placement services designed to place students in a

university, college, or junior college program, or in military

service or career positions; and

(C) health services;

(4) information concerning, and assistance in obtaining,

available student financial aid;

(5) weekly stipends for high school equivalency program

participants;

(6) housing for those enrolled in residential programs;

(7) exposure to cultural events, academic programs, and other

educational and cultural activities usually not available to

migrant youth; and

(8) other essential supportive services, as needed to ensure

the success of eligible students.

(c) Services provided by college assistance migrant program

(1) Services authorized by this subpart for the college

assistance migrant program include -

(A) outreach and recruitment services to reach persons who

themselves or whose parents have spent a minimum of 75 days

during the past 24 months in migrant and seasonal farmwork or who

have participated or are eligible to participate, in programs

under part C of title I of the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 6391 et seq.) (or such part's predecessor

authority) or section 2912 of title 29, and who meet the minimum

qualifications for attendance at a college or university;

(B) supportive and instructional services which include:

(i) personal, academic, and career counseling as an ongoing

part of the program;

(ii) tutoring and academic skill building instruction and

assistance;

(iii) assistance with special admissions;

(iv) health services; and

(v) other services as necessary to assist students in

completing program requirements;

(C) assistance in obtaining student financial aid which

includes, but is not limited to:

(i) stipends;

(ii) scholarships;

(iii) student travel;

(iv) career oriented work study;

(v) books and supplies;

(vi) tuition and fees;

(vii) room and board; and

(viii) other assistance necessary to assist students in

completing their first year of college;

(D) housing support for students living in institutional

facilities and commuting students;

(E) exposure to cultural events, academic programs, and other

activities not usually available to migrant youth; and

(F) other support services as necessary to ensure the success

of eligible students.

(2) A recipient of a grant to operate a college assistance

migrant program under this subpart shall provide followup services

for migrant students after such students have completed their first

year of college, and shall not use more than 10 percent of such

grant for such followup services. Such followup services may

include -

(A) monitoring and reporting the academic progress of students

who participated in the project during such student's first year

of college and during such student's subsequent years in college;

and

(B) referring such students to on- or off-campus providers of

counseling services, academic assistance, or financial aid.

(d) Management plan required

Each project application shall include a management plan which

contains assurances that the grant recipient will coordinate the

project, to the extent feasible, with other local, State, and

Federal programs to maximize the resources available for migrant

students, and that staff shall have a demonstrated knowledge and be

sensitive to the unique characteristics and needs of the migrant

and seasonal farmworker population, and provisions for:

(1) staff in-service training;

(2) training and technical assistance;

(3) staff travel;

(4) student travel;

(5) interagency coordination; and

(6) an evaluation plan.

(e) Five-year grant period; consideration of prior experience

Except under extraordinary circumstances, the Secretary shall

award grants for a 5-year period. For the purpose of making grants

under this subpart, the Secretary shall consider the prior

experience of service delivery under the particular project for

which funds are sought by each applicant. Such prior experience

shall be awarded the same level of consideration given this factor

for applicants for programs in accordance with section

1070a-11(c)(1) of this title.

(f) Minimum allocations

The Secretary shall not allocate an amount less than -

(1) $150,000 for each project under the high school equivalency

program, and

(2) $150,000 for each project under the college assistance

migrant program.

(g) Data collection

The National Center for Education Statistics shall collect

postsecondary education data on migrant students.

(h) Authorization of appropriations

(1) There are authorized to be appropriated for the high school

equivalency program $15,000,000 for fiscal year 1999 and such sums

as may be necessary for each of the 4 succeeding fiscal years.

(2) There are authorized to be appropriated for the college

assistance migrant program $5,000,000 for fiscal year 1999 and such

sums as may be necessary for each of the 4 succeeding fiscal years.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 418A, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1341; amended Pub.

L. 100-50, Sec. 7, June 3, 1987, 101 Stat. 340; Pub. L. 102-325,

title IV, Sec. 405, July 23, 1992, 106 Stat. 507; Pub. L. 103-382,

title III, Sec. 391(e)(1), (2), Oct. 20, 1994, 108 Stat. 4022; Pub.

L. 105-244, title IV, Sec. 408, Oct. 7, 1998, 112 Stat. 1667; Pub.

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

(f)(12)(A)), Oct. 21, 1998, 112 Stat. 2681-337, 2681-421,

2681-431.)

-REFTEXT-

REFERENCES IN TEXT

The Elementary and Secondary Education Act of 1965, referred to

in subsecs. (b)(1)(B)(ii) and (c)(1)(A), is Pub. L. 89-10, Apr. 11,

1965, 79 Stat. 27, as amended. Part C of title I of the Act is

classified generally to part C (Sec. 6391 et seq.) of subchapter I

of chapter 70 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 6301 of

this title and Tables.

-MISC2-

PRIOR PROVISIONS

A prior section 1070d-2, Pub. L. 89-329, title IV, Sec. 418A, as

added Pub. L. 96-374, title IV, Sec. 406, Oct. 3, 1980, 94 Stat.

1411, related to secondary and postsecondary high school

equivalency programs and college assistance migrant programs, prior

to the general revision of this part by Pub. L. 99-498.

Another prior section 1070d-2, Pub. L. 89-329, title IV, Sec.

418A, as added Pub. L. 94-482, title I, Sec. 125, Oct. 12, 1976, 90

Stat. 2096; amended Pub. L. 96-49, Sec. 5(a)(6), Aug. 13, 1979, 93

Stat. 352, provided for the Educational Information Centers

program, prior to repeal by Pub. L. 96-374, title I, Sec. 101(b),

Oct. 3, 1980, 94 Stat. 1383. See section 1070d-1c of this title.

A prior section 1070d-3, Pub. L. 89-329, title IV, Sec. 418B, as

added Pub. L. 94-482, title I, Sec. 125, Oct. 12, 1976, 90 Stat.

2097, related to administration by States of Educational

Information Centers program, prior to repeal by Pub. L. 96-374,

title I, Sec. 101(b), Oct. 3, 1980, 94 Stat. 1383, eff. Oct. 1,

1980.

AMENDMENTS

1998 - Subsecs. (b)(1)(B)(ii), (c)(1)(A). Pub. L. 105-277, Sec.

101(f) (title VIII, Sec. 405(f)(12)(A)), struck out ''section 1672

of title 29 or'' before ''section 2912 of title 29''.

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

substituted ''section 1672 of title 29 or section 2912 of title

29'' for ''section 1672 of title 29''.

Subsec. (d). Pub. L. 105-244, Sec. 408(a), inserted ''that the

grant recipient will coordinate the project, to the extent

feasible, with other local, State, and Federal programs to maximize

the resources available for migrant students, and'' after

''contains assurances'' in introductory provisions.

Subsec. (e). Pub. L. 105-244, Sec. 408(d), substituted ''in

accordance with section 1070a-11(c)(1) of this title'' for

''authorized by subpart 4 of this part in accordance with section

1070d(b)(2) of this title.''

Subsec. (g). Pub. L. 105-244, Sec. 408(c)(2), added subsec. (g).

Former subsec. (g) redesignated (h).

Pub. L. 105-244, Sec. 408(b), substituted ''1999'' for ''1993''

in pars. (1) and (2).

Subsec. (h). Pub. L. 105-244, Sec. 408(c)(1), redesignated

subsec. (g) as (h).

1994 - Subsec. (b)(1)(B)(ii). Pub. L. 103-382, Sec. 391(e)(1),

substituted ''part C'' for ''subpart 1 of part D of chapter 1''.

Subsec. (c)(1)(A). Pub. L. 103-382, Sec. 391(e)(2), substituted

''part C'' for ''subpart 1 of part D of chapter 1'' and inserted

''(or such part's predecessor authority)'' after ''1965''.

1992 - Subsec. (b)(1). Pub. L. 102-325, Sec. 405(a)(1)(A), added

par. (1) and struck out former par. (1) which read as follows:

''recruitment services to reach persons who are 17 years of age and

over, who themselves or whose parents have spent a minimum of 75

days during the past 24 months in migrant and seasonal farmwork,

and who lack a high school diploma or its equivalent;''.

Subsec. (b)(4). Pub. L. 102-325, Sec. 405(a)(1)(B), inserted

comma after ''concerning'' and after ''obtaining''.

Subsec. (c). Pub. L. 102-325, Sec. 405(a)(2), (b), designated

existing provisions as par. (1), redesignated former par. (1) as

subpar. (A) and amended it generally, redesignated par. (2) and its

subpars. (A) to (E) as subpar. (B) and cls. (i) to (v),

respectively, redesignated par. (3) and its subpars. (A) to (H) as

subpar. (C) and cls. (i) to (viii), respectively, redesignated

pars. (4) to (6) as subpars. (D) to (F), respectively, and added

par. (2). Prior to amendment, par. (1) read as follows: ''outreach

and recruitment services to reach persons who themselves or whose

parents have spent a minimum of 75 days during the past 24 months

in migrant and seasonal farmwork, and who meet the minimum

qualifications for attendance at a college or university;''.

Subsec. (e). Pub. L. 102-325, Sec. 405(c), substituted

''Five-year'' for ''Three-year'' in heading and ''5-year'' for

''3-year'' in text.

Subsec. (g). Pub. L. 102-325, Sec. 405(d), amended subsec. (g)

generally, substituting present provisions for former provisions

which authorized appropriations for fiscal years 1987 through 1991.

1987 - Subsec. (g). Pub. L. 100-50 amended subsec. (g)

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

''There is authorized to be appropriated for this part $9,000,000

for fiscal year 1987, and such sums as may be necessary for the 4

succeeding fiscal years.''

EFFECTIVE DATE OF 1998 AMENDMENTS

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

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

101(f) (title VIII, Sec. 405(f)(12)(A)) 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.

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 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 subpart 6 - robert c. byrd honors scholarship

program 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

.

-HEAD-

subpart 6 - robert c. byrd honors scholarship program

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in section 1070 of this title.

-CITE-

20 USC Sec. 1070d-31 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

-HEAD-

Sec. 1070d-31. Statement of purpose

-STATUTE-

It is the purpose of this subpart to establish a Robert C. Byrd

Honors Scholarship Program to promote student excellence and

achievement and to recognize exceptionally able students who show

promise of continued excellence.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 419A, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1343.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070d-31, Pub. L. 89-329, title IV, Sec. 419A, as

added Pub. L. 98-558, title VIII, Sec. 801(a), Oct. 30, 1984, 98

Stat. 2900; amended Pub. L. 99-145, title XVI, Sec. 1627(a), Nov.

8, 1985, 99 Stat. 779, provided statement of purpose for Robert C.

Byrd Honors Scholarship Program, prior to the general revision of

this part by Pub. L. 99-498.

-CITE-

20 USC Sec. 1070d-32 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

-HEAD-

Sec. 1070d-32. Repealed. Pub. L. 102-325, title IV, Sec. 406(a),

July 23, 1992, 106 Stat. 508

-MISC1-

Section, Pub. L. 89-329, title IV, Sec. 419B, as added Pub. L.

99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1343,

defined terms used in this subpart.

A prior section 1070d-32, Pub. L. 89-329, title IV, Sec. 419B, as

added Pub. L. 98-558, title VIII, Sec. 801(a), Oct. 30, 1984, 98

Stat. 2900, defined terms used in this subpart, prior to the

general revision of this part by Pub. L. 99-498.

-CITE-

20 USC Sec. 1070d-33 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

-HEAD-

Sec. 1070d-33. Scholarships authorized

-STATUTE-

(a) Program authority

The Secretary is authorized, in accordance with the provisions of

this subpart, to make grants to States to enable the States to

award scholarships to individuals who have demonstrated outstanding

academic achievement and who show promise of continued academic

achievement.

(b) Period of award

Scholarships under this section shall be awarded for a period of

not less than 1 or more than 4 years during the first 4 years of

study at any institution of higher education eligible to

participate in any programs assisted under this subchapter and part

C of subchapter I of chapter 34 of title 42. The State educational

agency administering the program in a State shall have discretion

to determine the period of the award (within the limits specified

in the preceding sentence), except that -

(1) if the amount appropriated for this subpart for any fiscal

year exceeds the amount appropriated for this subpart for fiscal

year 1993, the Secretary shall identify to each State educational

agency the number of scholarships available to that State under

section 1070d-34(b) of this title that are attributable to such

excess;

(2) the State educational agency shall award not less than that

number of scholarships for a period of 4 years.

(c) Use at any institution permitted

A student awarded a scholarship under this subpart may attend any

institution of higher education.

(d) Byrd Scholars

Individuals awarded scholarships under this subpart shall be

known as ''Byrd Scholars''.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 419C, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1344; amended Pub.

L. 102-325, title IV, Sec. 406(b), July 23, 1992, 106 Stat. 508;

Pub. L. 103-208, Sec. 2(b)(28), Dec. 20, 1993, 107 Stat. 2459.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070d-33, Pub. L. 89-329, title IV, Sec. 419C, as

added Pub. L. 98-558, title VIII, Sec. 801(a), Oct. 30, 1984, 98

Stat. 2900; amended Pub. L. 99-145, title XVI, Sec. 1627(b), Nov.

8, 1985, 99 Stat. 779, authorized the award of scholarships under

Robert C. Byrd Honors Scholarship Program, prior to the general

revision of this part by Pub. L. 99-498.

AMENDMENTS

1993 - Subsec. (b). Pub. L. 103-208 substituted ''for a period of

not less than 1 or more than 4 years during the first 4 years of

study'' for ''for a period of not more than 4 years for the first 4

years of study'' and inserted at end ''The State educational agency

administering the program in a State shall have discretion to

determine the period of the award (within the limits specified in

the preceding sentence), except that -

''(1) if the amount appropriated for this subpart for any

fiscal year exceeds the amount appropriated for this subpart for

fiscal year 1993, the Secretary shall identify to each State

educational agency the number of scholarships available to that

State under section 1070d-34(b) of this title that are

attributable to such excess;

''(2) the State educational agency shall award not less than

that number of scholarships for a period of 4 years.''

1992 - Subsec. (b). Pub. L. 102-325 amended subsec. (b)

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

''Scholarships under this section shall be awarded for a period of

one academic year for the first year of study at an institution of

higher education.''

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-208 effective on and after Dec. 20,

1993, see section 5(b)(2) of Pub. L. 103-208, set out as a note

under section 1051 of this title.

-CITE-

20 USC Sec. 1070d-34 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

-HEAD-

Sec. 1070d-34. Allocation among States

-STATUTE-

(a) Allocation formula

From the sums appropriated pursuant to the authority of section

1070d-41 of this title for any fiscal year, the Secretary shall

allocate to each State that has an agreement under section 1070d-35

of this title an amount equal to $1,500 multiplied by the number of

scholarships determined by the Secretary to be available to such

State in accordance with subsection (b) of this section.

(b) Number of scholarships available

The number of scholarships to be made available in a State for

any fiscal year shall bear the same ratio to the number of

scholarships made available to all States as the State's population

ages 5 through 17 bears to the population ages 5 through 17 in all

the States, except that not less than 10 scholarships shall be made

available to any State.

(c) Use of census data

For the purpose of this section, the population ages 5 through 17

in a State and in all the States shall be determined by the most

recently available data, satisfactory to the Secretary, from the

Bureau of the Census.

(d) Consolidation by Insular Areas prohibited

Notwithstanding section 1469a of title 48, (FOOTNOTE 1) funds

allocated under this part to an Insular Area described in that

section shall be deemed to be direct payments to classes of

individuals, and the Insular Area may not consolidate such funds

with other funds received by the Insular Area from any department

or agency of the United States Government.

(FOOTNOTE 1) See References in Text note below.

(e) FAS eligibility

(1) Fiscal years 2000 through 2004

Notwithstanding any other provision of this subpart, in the

case of students from the Freely Associated States who may be

selected to receive a scholarship under this subpart for the

first time for any of the fiscal years 2000 through 2004 -

(A) there shall be 10 scholarships in the aggregate awarded

to such students for each of the fiscal years 2000 through

2004; and

(B) the Pacific Regional Educational Laboratory shall

administer the program under this subpart in the case of

scholarships for students in the Freely Associated States.

(2) Termination of eligibility

A student from the Freely Associated States shall not be

eligible to receive a scholarship under this subpart after

September 30, 2004.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 419D, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1344; amended Pub.

L. 102-325, title IV, Sec. 406(c), July 23, 1992, 106 Stat. 509;

Pub. L. 103-208, Sec. 2(b)(29), Dec. 20, 1993, 107 Stat. 2459; Pub.

L. 105-244, title IV, Sec. 409(a), Oct. 7, 1998, 112 Stat. 1668.)

-REFTEXT-

REFERENCES IN TEXT

Section 1469a of title 48, referred to in text, was in the

original ''section 501 of Public Law 95-1134 (48 U.S.C. 1469a)''

and was translated as reading ''section 501 of Public Law 95-134''

to reflect the probable intent of Congress.

-MISC2-

PRIOR PROVISIONS

A prior section 1070d-34, Pub. L. 89-329, title IV, Sec. 419D, as

added Pub. L. 98-558, title VIII, Sec. 801(a), Oct. 30, 1984, 98

Stat. 2901, related to allocation among States of amounts for

Robert C. Byrd Honors Scholarship Program, prior to the general

revision of this part by Pub. L. 99-498.

AMENDMENTS

1998 - Subsec. (e). Pub. L. 105-244 added subsec. (e).

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

1992 - Pub. L. 102-325 amended section generally. Prior to

amendment, section read as follows: ''From the sums appropriated

pursuant to section 1070d-41 of this title for any fiscal year, the

Secretary shall allocate to each State having an agreement under

section 1070d-35 of this title -

''(1) $1,500 multiplied by the number of individuals in the

State eligible for scholarships pursuant to section 1070d-37(b)

of this title, plus

''(2) $10,000, plus 5 percent of the amount to which a State is

eligible under paragraph (1) 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 on and after Oct. 1, 1993,

see section 5(b)(1) 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 section 1070d-33 of this title.

-CITE-

20 USC Sec. 1070d-35 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

-HEAD-

Sec. 1070d-35. Agreements

-STATUTE-

The Secretary shall enter into an agreement with each State

desiring to participate in the scholarship program authorized by

this subpart. Each such agreement shall include provisions

designed to assure that -

(1) the State educational agency will administer the

scholarship program authorized by this subpart in the State;

(2) the State educational agency will comply with the

eligibility and selection provisions of this subpart;

(3) the State educational agency will conduct outreach

activities to publicize the availability of scholarships under

this subpart to all eligible students in the State, with

particular emphasis on activities designed to assure that

students from low-income and moderate-income families have access

to the information on the opportunity for full participation in

the scholarship program authorized by this subpart; and

(4) the State educational agency will pay to each individual in

the State who is awarded a scholarship under this subpart $1,500.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 419E, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1344; amended Pub.

L. 102-325, title IV, Sec. 406(g)(2), (3), July 23, 1992, 106 Stat.

509.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070d-35, Pub. L. 89-329, title IV, Sec. 419E, as

added Pub. L. 98-558, title VIII, Sec. 801(a), Oct. 30, 1984, 98

Stat. 2901; amended Pub. L. 99-145, title XVI, Sec. 1627(c), Nov.

8, 1985, 99 Stat. 779, related to agreements with States for

participation in the Robert C. Byrd Honors Scholarship Program,

prior to the general revision of this part by Pub. L. 99-498.

AMENDMENTS

1992 - Par. (3). Pub. L. 102-325, Sec. 406(g)(2)(A), inserted

''and'' after semicolon.

Par. (4). Pub. L. 102-325, Sec. 406(g)(2)(B), substituted

''$1,500.'' for ''$1,500 at an awards ceremony in accordance with

section 1070d-39 of this title; and''.

Par. (5). Pub. L. 102-325, Sec. 406(g)(3), which directed that

par. (5) be struck out without specifying the section to which the

amendment applied, was executed by striking out par. (5) of this

section to reflect the probable intent of Congress. Prior to

amendment, par. (5) read as follows: ''the State educational agency

will use the amount of the allocation described in paragraph (2) of

section 1070d-34 of this title for administrative expenses,

including the conduct of the awards ceremony required by section

1070d-39 of this title.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1070d-34 of this title.

-CITE-

20 USC Sec. 1070d-36 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

-HEAD-

Sec. 1070d-36. Eligibility of scholars

-STATUTE-

(a) High school graduation or equivalent and admission to

institution required

Each student awarded a scholarship under this subpart shall be a

graduate of a public or private secondary school or have the

equivalent of a certificate of graduation as recognized by the

State in which the student resides and must have been admitted for

enrollment at an institution of higher education.

(b) Selection based on promise of academic achievement

Each student awarded a scholarship under this subpart must

demonstrate outstanding academic achievement and show promise of

continued academic achievement.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 419F, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1344.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070d-36, Pub. L. 89-329, title IV, Sec. 419F, as

added Pub. L. 98-558, title VIII, Sec. 801(a), Oct. 30, 1984, 98

Stat. 2901, related to eligibility of students for scholarships

under Robert C. Byrd Honors Scholarship Program, prior to the

general revision of this part by Pub. L. 99-498.

-CITE-

20 USC Sec. 1070d-37 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

-HEAD-

Sec. 1070d-37. Selection of scholars

-STATUTE-

(a) Establishment of criteria

The State educational agency is authorized to establish the

criteria for the selection of scholars under this subpart.

(b) Adoption of procedures

The State educational agency shall adopt selection procedures

designed to ensure an equitable geographic distribution of awards

within the State (and in the case of the Federated States of

Micronesia, the Republic of the Marshall Islands, the Virgin

Islands, American Samoa, the Commonwealth of the Northern Mariana

Islands, Guam, or Palau (until such time as the Compact of Free

Association is ratified), not to exceed 10 individuals will be

selected from such entities).

(c) Consultation requirement

In carrying out its responsibilities under subsections (a) and

(b) of this section, the State educational agency shall consult

with school administrators, school boards, teachers, counselors,

and parents.

(d) Timing of selection

The selection process shall be completed, and the awards made,

prior to the end of each secondary school academic year.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 419G, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1345; amended Pub.

L. 102-325, title IV, Sec. 406(d), July 23, 1992, 106 Stat. 509;

Pub. L. 103-208, Sec. 2(b)(30), Dec. 20, 1993, 107 Stat. 2460.)

-REFTEXT-

REFERENCES IN TEXT

For ratification of Compact of Free Association with the Republic

of Palau, referred to in subsec. (b), see Proc. No. 6726, Sept. 27,

1994, 59 F.R. 49777, set out as a note under section 1931 of Title

48, Territories and Insular Possessions.

-MISC2-

PRIOR PROVISIONS

A prior section 1070d-37, Pub. L. 89-329, title IV, Sec. 419G, as

added Pub. L. 98-558, title VIII, Sec. 801(a), Oct. 30, 1984, 98

Stat. 2901, related to selection of merit scholars under Robert C.

Byrd Honors Scholarship Program, prior to the general revision of

this part by Pub. L. 99-498.

AMENDMENTS

1993 - Subsec. (b). Pub. L. 103-208 substituted ''the Federated

States of Micronesia, the Republic of the Marshall Islands,'' for

''the District of Columbia, the Commonwealth of Puerto Rico,''.

1992 - Subsec. (b). Pub. L. 102-325, Sec. 406(d)(1), amended

subsec. (b) generally. Prior to amendment, subsec. (b) read as

follows: ''The State educational agency shall adopt selection

procedures which are designed to assure that 10 individuals will be

selected from among residents of each congressional district in a

State (and in the case of the District of Columbia and the

Commonwealth of Puerto Rico not to exceed 10 individuals will be

selected in such District or Commonwealth).''

Subsec. (d). Pub. L. 102-325, Sec. 406(d)(2), added subsec. (d).

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.

-CITE-

20 USC Sec. 1070d-38 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

-HEAD-

Sec. 1070d-38. Stipends and scholarship conditions

-STATUTE-

(a) Amount of award

Each student awarded a scholarship under this subpart shall

receive a stipend of $1,500 for the academic year of study for

which the scholarship is awarded, except that in no case shall the

total amount of financial aid awarded to such student exceed such

student's total cost-of-attendance.

(b) Use of award

The State educational agency shall establish procedures to assure

that a scholar awarded a scholarship under this subpart pursues a

course of study at an institution of higher education.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 419H, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1345; amended Pub.

L. 102-325, title IV, Sec. 406(e), July 23, 1992, 106 Stat. 509.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070d-38, Pub. L. 89-329, title IV, Sec. 419H, as

added Pub. L. 98-558, title VIII, Sec. 801(a), Oct. 30, 1984, 98

Stat. 2902, related to stipends and scholarship conditions for

students receiving scholarships under Robert C. Byrd Honors

Scholarship Program, prior to the general revision of this part by

Pub. L. 99-498.

AMENDMENTS

1992 - Subsec. (a). Pub. L. 102-325 inserted before period at end

'', except that in no case shall the total amount of financial aid

awarded to such student exceed such student's total

cost-of-attendance''.

-CITE-

20 USC Sec. 1070d-39 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

-HEAD-

Sec. 1070d-39. Repealed. Pub. L. 102-325, title IV, Sec. 406(g)(1),

July 23, 1992, 106 Stat. 509

-MISC1-

Section, Pub. L. 89-329, title IV, Sec. 419I, as added Pub. L.

99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1345,

related to awards ceremony.

A prior section 1070d-39, Pub. L. 89-329, title IV, Sec. 419I, as

added Pub. L. 98-558, title VIII, Sec. 801(a), Oct. 30, 1984, 98

Stat. 2902, related to ceremony for awarding scholarships under

Robert C. Byrd Honors Scholarship Program, prior to the general

revision of this part by Pub. L. 99-498.

-CITE-

20 USC Sec. 1070d-40 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

-HEAD-

Sec. 1070d-40. Construction of needs provisions

-STATUTE-

Except as provided in section 1087kk of this title, nothing in

this subpart, or any other Act, shall be construed to permit the

receipt of a scholarship under this subpart to be counted for any

needs test in connection with the awarding of any grant or the

making of any loan under this chapter or any other provision of

Federal law relating to educational assistance.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 419J, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1345; amended Pub.

L. 102-325, title IV, Sec. 406(f), July 23, 1992, 106 Stat. 509.)

-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

A prior section 1070d-40, Pub. L. 89-329, title IV, Sec. 419J, as

added Pub. L. 98-558, title VIII, Sec. 801(a), Oct. 30, 1984, 98

Stat. 2902, provided that receipt of scholarship under Robert C.

Byrd Honors Scholarship Program not be counted for needs test for

education grant or loan, prior to the general revision of this part

by Pub. L. 99-498.

AMENDMENTS

1992 - Pub. L. 102-325 substituted ''Except as provided in

section 1087kk of this title, nothing'' for ''Nothing''.

-CITE-

20 USC Sec. 1070d-41 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 6 - robert c. byrd honors scholarship program

-HEAD-

Sec. 1070d-41. Authorization of appropriations

-STATUTE-

There are authorized to be appropriated for this subpart

$45,000,000 for fiscal year 1999 and such sums as may be necessary

for each of the 4 succeeding fiscal years.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 419K, as added Pub. L. 99-498,

title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1346; amended Pub.

L. 102-325, title IV, Sec. 406(h), July 23, 1992, 106 Stat. 509;

Pub. L. 105-244, title IV, Sec. 409(b), Oct. 7, 1998, 112 Stat.

1668.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070d-41, Pub. L. 89-329, title IV, Sec. 419K, as

added Pub. L. 98-558, title VIII, Sec. 801(a), Oct. 30, 1984, 98

Stat. 2902, authorized appropriations for fiscal years 1986 to 1988

to carry out Robert C. Byrd Honors Scholarship Program, prior to

the general revision of this part by Pub. L. 99-498.

AMENDMENTS

1998 - Pub. L. 105-244 substituted ''$45,000,000 for fiscal year

1999'' for ''$10,000,000 for fiscal year 1993''.

1992 - Pub. L. 102-325 amended section generally. Prior to

amendment, section read as follows: ''There are authorized to be

appropriated for this subpart $8,000,000 for fiscal year 1987, and

such sums as may be necessary for the 4 succeeding fiscal years.''

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 1070d-34 of this title.

-CITE-

20 USC subpart 7 - child care access means parents in

school 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 7 - child care access means parents in school

.

-HEAD-

subpart 7 - child care access means parents in school

-MISC1-

PRIOR PROVISIONS

A prior subpart 7, consisted of sections 1070e and 1070e-1 and

related to assistance to institutions of higher education, prior to

the repeal of sections 1070e and 1070e-1 by Pub. L. 102-325, title

IV, Sec. 407, 408, July 23, 1992, 106 Stat. 510.

-CITE-

20 USC Sec. 1070e 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 7 - child care access means parents in school

-HEAD-

Sec. 1070e. Child care access means parents in school

-STATUTE-

(a) Purpose

The purpose of this section is to support the participation of

low-income parents in postsecondary education through the provision

of campus-based child care services.

(b) Program authorized

(1) Authority

The Secretary may award grants to institutions of higher

education to assist the institutions in providing campus-based

child care services to low-income students.

(2) Amount of grants

(A) In general

The amount of a grant awarded to an institution of higher

education under this section for a fiscal year shall not exceed

1 percent of the total amount of all Federal Pell Grant funds

awarded to students enrolled at the institution of higher

education for the preceding fiscal year.

(B) Minimum

A grant under this section shall be awarded in an amount that

is not less than $10,000.

(3) Duration; renewal; and payments

(A) Duration

The Secretary shall award a grant under this section for a

period of 4 years.

(B) Payments

Subject to subsection (e)(2) of this section, the Secretary

shall make annual grant payments under this section.

(4) Eligible institutions

An institution of higher education shall be eligible to receive

a grant under this section for a fiscal year if the total amount

of all Federal Pell Grant funds awarded to students enrolled at

the institution of higher education for the preceding fiscal year

equals or exceeds $350,000.

(5) Use of funds

Grant funds under this section shall be used by an institution

of higher education to support or establish a campus-based child

care program primarily serving the needs of low-income students

enrolled at the institution of higher education. Grant funds

under this section may be used to provide before and after school

services to the extent necessary to enable low-income students

enrolled at the institution of higher education to pursue

postsecondary education.

(6) Construction

Nothing in this section shall be construed to prohibit an

institution of higher education that receives grant funds under

this section from serving the child care needs of the community

served by the institution.

(7) Definition of low-income student

For the purpose of this section, the term ''low-income

student'' means a student who is eligible to receive a Federal

Pell Grant for the fiscal year for which the determination is

made.

(c) Applications

An institution of higher education desiring a grant under this

section shall submit an application to the Secretary at such time,

in such manner, and accompanied by such information as the

Secretary may require. Each application shall -

(1) demonstrate that the institution is an eligible institution

described in subsection (b)(4) of this section;

(2) specify the amount of funds requested;

(3) demonstrate the need of low-income students at the

institution for campus-based child care services by including in

the application -

(A) information regarding student demographics;

(B) an assessment of child care capacity on or near campus;

(C) information regarding the existence of waiting lists for

existing child care;

(D) information regarding additional needs created by

concentrations of poverty or by geographic isolation; and

(E) other relevant data;

(4) contain a description of the activities to be assisted,

including whether the grant funds will support an existing child

care program or a new child care program;

(5) identify the resources, including technical expertise and

financial support, the institution will draw upon to support the

child care program and the participation of low-income students

in the program, such as accessing social services funding, using

student activity fees to help pay the costs of child care, using

resources obtained by meeting the needs of parents who are not

low-income students, and accessing foundation, corporate or other

institutional support, and demonstrate that the use of the

resources will not result in increases in student tuition;

(6) contain an assurance that the institution will meet the

child care needs of low-income students through the provision of

services, or through a contract for the provision of services;

(7) describe the extent to which the child care program will

coordinate with the institution's early childhood education

curriculum, to the extent the curriculum is available, to meet

the needs of the students in the early childhood education

program at the institution, and the needs of the parents and

children participating in the child care program assisted under

this section;

(8) in the case of an institution seeking assistance for a new

child care program -

(A) provide a timeline, covering the period from receipt of

the grant through the provision of the child care services,

delineating the specific steps the institution will take to

achieve the goal of providing low-income students with child

care services;

(B) specify any measures the institution will take to assist

low-income students with child care during the period before

the institution provides child care services; and

(C) include a plan for identifying resources needed for the

child care services, including space in which to provide child

care services, and technical assistance if necessary;

(9) contain an assurance that any child care facility assisted

under this section will meet the applicable State or local

government licensing, certification, approval, or registration

requirements; and

(10) contain a plan for any child care facility assisted under

this section to become accredited within 3 years of the date the

institution first receives assistance under this section.

(d) Priority

The Secretary shall give priority in awarding grants under this

section to institutions of higher education that submit

applications describing programs that -

(1) leverage significant local or institutional resources,

including in-kind contributions, to support the activities

assisted under this section; and

(2) utilize a sliding fee scale for child care services

provided under this section in order to support a high number of

low-income parents pursuing postsecondary education at the

institution.

(e) Reporting requirements; continuing eligibility

(1) Reporting requirements

(A) Reports

Each institution of higher education receiving a grant under

this section shall report to the Secretary 18 months, and 36

months, after receiving the first grant payment under this

section.

(B) Contents

The report shall include -

(i) data on the population served under this section;

(ii) information on campus and community resources and

funding used to help low-income students access child care

services;

(iii) information on progress made toward accreditation of

any child care facility; and

(iv) information on the impact of the grant on the quality,

availability, and affordability of campus-based child care

services.

(2) Continuing eligibility

The Secretary shall make the third annual grant payment under

this section to an institution of higher education only if the

Secretary determines, on the basis of the 18-month report

submitted under paragraph (1), that the institution is making a

good faith effort to ensure that low-income students at the

institution have access to affordable, quality child care

services.

(f) Construction

No funds provided under this section shall be used for

construction, except for minor renovation or repair to meet

applicable State or local health or safety requirements.

(g) Authorization of appropriations

There are authorized to be appropriated to carry out this section

$45,000,000 for fiscal year 1999 and such sums as may be necessary

for each of the 4 succeeding fiscal years.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 419N, as added Pub. L. 105-244,

title IV, Sec. 410, Oct. 7, 1998, 112 Stat. 1668.)

-MISC1-

PRIOR PROVISIONS

A prior section 1070e, Pub. L. 89-329, title IV, Sec. 420, as

added Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100

Stat. 1346, related to payments to institutions of higher

education, prior to repeal by Pub. L. 102-325, title IV, Sec. 407,

July 23, 1992, 106 Stat. 510.

Another prior section 1070e, Pub. L. 89-329, title IV, Sec. 420,

formerly Sec. 419, as added Pub. L. 92-318, title X, Sec. 1001(a),

June 23, 1972, 86 Stat. 375; amended Pub. L. 96-374, title XIII,

Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1503; renumbered Pub. L.

98-558, title VIII, Sec. 801(b)(1), Oct. 30, 1984, 98 Stat. 2902,

related to payments to institutions of higher education, prior to

the general amendment of this part by Pub. L. 99-498.

A prior section 1070e-1, Pub. L. 89-329, title IV, Sec. 420A, as

added Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100

Stat. 1348; amended Pub. L. 100-50, Sec. 8, June 3, 1987, 101 Stat.

341; Pub. L. 102-54, Sec. 13(g)(2), June 13, 1991, 105 Stat. 275;

Pub. L. 102-83, Sec. 5(c)(2), Aug. 6, 1991, 105 Stat. 406, related

to veterans education outreach program, prior to repeal by Pub. L.

102-325, title IV, Sec. 408, July 23, 1992, 106 Stat. 510.

Another prior section 1070e-1, Pub. L. 89-329, title IV, Sec.

420A, formerly Sec. 420, as added Pub. L. 92-318, title X, Sec.

1001(a), June 23, 1972, 86 Stat. 378; amended Pub. L. 93-380, title

VIII, Sec. 834(a), Aug. 21, 1974, 88 Stat. 604; Pub. L. 94-482,

title I, Sec. 126(a)-(c), Oct. 12, 1976, 90 Stat. 2098; Pub. L.

95-336, Sec. 6(a), Aug. 4, 1978, 92 Stat. 453; Pub. L. 96-49, Sec.

5(a)(7), Aug. 13, 1979, 93 Stat. 352; Pub. L. 96-374, title IV,

Sec. 407, Oct. 3, 1980, 94 Stat. 1412; Pub. L. 97-300, title I,

Sec. 183, Oct. 13, 1982, 96 Stat. 1357; renumbered Sec. 420A, Pub.

L. 98-558, title VIII, Sec. 801(b)(2), Oct. 30, 1984, 98 Stat.

2902, related to veterans' cost-of-instruction payments to

institutions of higher education, prior to the general amendment of

this part by Pub. L. 99-498.

EFFECTIVE DATE

Section effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC subpart 8 - learning anytime anywhere partnerships 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 8 - learning anytime anywhere partnerships

.

-HEAD-

subpart 8 - learning anytime anywhere partnerships

-COD-

CODIFICATION

Subpart 8 of part A of title IV of the Higher Education Act of

1965, comprising this subpart, was originally added to Pub. L.

89-329, title IV, by Pub. L. 99-498, title IV, Sec. 401(a), Oct.

17, 1986, 100 Stat. 1352, and amended by Pub. L. 100-50, June 3,

1987, 101 Stat. 335; Pub. L. 102-325, July 23, 1992, 106 Stat. 448.

Subpart 8 is shown herein, however, as having been added by Pub. L.

105-244, title IV, Sec. 411, Oct. 7, 1998, 112 Stat. 1671, without

reference to those intervening amendments because of the extensive

revision of subpart 8 by Pub. L. 105-244.

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in section 1070 of this title.

-CITE-

20 USC Sec. 1070f 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 8 - learning anytime anywhere partnerships

-HEAD-

Sec. 1070f. Findings

-STATUTE-

Congress makes the following findings:

(1) The nature of postsecondary education delivery is changing,

and new technology and other related innovations can provide

promising education opportunities for individuals who are

currently not being served, particularly for individuals without

easy access to traditional campus-based postsecondary education

or for whom traditional courses are a poor match with education

or training needs.

(2) Individuals, including individuals seeking basic or

technical skills or their first postsecondary experience,

individuals with disabilities, dislocated workers, individuals

making the transition from welfare-to-work, and individuals who

are limited by time and place constraints can benefit from

nontraditional, noncampus-based postsecondary education

opportunities and appropriate support services.

(3) The need for high-quality, nontraditional, technology-based

education opportunities is great, as is the need for skill

competency credentials and other measures of educational progress

and attainment that are valid and widely accepted, but neither

need is likely to be adequately addressed by the uncoordinated

efforts of agencies and institutions acting independently and

without assistance.

(4) Partnerships, consisting of institutions of higher

education, community organizations, or other public or private

agencies or organizations, can coordinate and combine

institutional resources -

(A) to provide the needed variety of education options to

students; and

(B) to develop new means of ensuring accountability and

quality for innovative education methods.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 420D, as added Pub. L. 105-244,

title IV, Sec. 411, Oct. 7, 1998, 112 Stat. 1671.)

-COD-

CODIFICATION

Another section 411 of Pub. L. 105-244 amended section 1071 of

this title.

-MISC3-

PRIOR PROVISIONS

A prior section 1070f, Pub. L. 89-329, title IV, Sec. 420B, as

added Pub. L. 99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100

Stat. 1352; amended Pub. L. 100-50, Sec. 9, June 3, 1987, 101 Stat.

341; Pub. L. 102-325, title IV, Sec. 409, July 23, 1992, 106 Stat.

510, related to special child care services for disadvantaged

college students, prior to the general amendment of this subpart by

Pub. L. 105-244.

EFFECTIVE DATE

Subpart effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-CITE-

20 USC Sec. 1070f-1 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 8 - learning anytime anywhere partnerships

-HEAD-

Sec. 1070f-1. Purpose; program authorized

-STATUTE-

(a) Purpose

It is the purpose of this subpart to enhance the delivery,

quality, and accountability of postsecondary education and

career-oriented lifelong learning through technology and related

innovations.

(b) Program authorized

(1) Grants

(A) In general

The Secretary may, from funds appropriated under section

1070f-6 of this title make grants to, or enter into contracts

or cooperative agreements with, eligible partnerships to carry

out the authorized activities described in section 1070f-3 of

this title.

(B) Duration

Grants under this subpart shall be awarded for periods that

do not exceed 5 years.

(2) Definition of eligible partnership

For purposes of this subpart, the term ''eligible partnership''

means a partnership consisting of 2 or more independent agencies,

organizations, or institutions. The agencies, organizations, or

institutions may include institutions of higher education,

community organizations, and other public and private

institutions, agencies, and organizations.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 420E, as added Pub. L. 105-244,

title IV, Sec. 411, Oct. 7, 1998, 112 Stat. 1672.)

-COD-

CODIFICATION

Another section 411 of Pub. L. 105-244 amended section 1071 of

this title.

-CITE-

20 USC Sec. 1070f-2 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 8 - learning anytime anywhere partnerships

-HEAD-

Sec. 1070f-2. Application

-STATUTE-

(a) Requirement

An eligible partnership desiring to receive a grant under this

subpart shall submit an application to the Secretary, in such form

and containing such information, as the Secretary may require.

(b) Contents

Each application shall include -

(1) the name of each partner and a description of the

responsibilities of the partner, including the designation of a

nonprofit organization as the fiscal agent for the partnership;

(2) a description of the need for the project, including a

description of how the project will build on any existing

services and activities;

(3) a listing of human, financial (other than funds provided

under this subpart), and other resources that each member of the

partnership will contribute to the partnership, and a description

of the efforts each member of the partnership will make in

seeking additional resources; and

(4) a description of how the project will operate, including

how funds awarded under this subpart will be used to meet the

purpose of this subpart.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 420F, as added Pub. L. 105-244,

title IV, Sec. 411, Oct. 7, 1998, 112 Stat. 1672.)

-COD-

CODIFICATION

Another section 411 of Pub. L. 105-244 amended section 1071 of

this title.

-CITE-

20 USC Sec. 1070f-3 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 8 - learning anytime anywhere partnerships

-HEAD-

Sec. 1070f-3. Authorized activities

-STATUTE-

Funds awarded to an eligible partnership under this subpart shall

be used to -

(1) develop and assess model distance learning programs or

innovative educational software;

(2) develop methodologies for the identification and

measurement of skill competencies;

(3) develop and assess innovative student support services; or

(4) support other activities that are consistent with the

purpose of this subpart.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 420G, as added Pub. L. 105-244,

title IV, Sec. 411, Oct. 7, 1998, 112 Stat. 1672.)

-COD-

CODIFICATION

Another section 411 of Pub. L. 105-244 amended section 1071 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1070f-1 of this title.

-CITE-

20 USC Sec. 1070f-4 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 8 - learning anytime anywhere partnerships

-HEAD-

Sec. 1070f-4. Matching requirement

-STATUTE-

Federal funds shall provide not more than 50 percent of the cost

of a project under this subpart. The non-Federal share of project

costs may be in cash or in kind, fairly evaluated, including

services, supplies, or equipment.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 420H, as added Pub. L. 105-244,

title IV, Sec. 411, Oct. 7, 1998, 112 Stat. 1673.)

-COD-

CODIFICATION

Another section 411 of Pub. L. 105-244 amended section 1071 of

this title.

-CITE-

20 USC Sec. 1070f-5 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 8 - learning anytime anywhere partnerships

-HEAD-

Sec. 1070f-5. Peer review

-STATUTE-

The Secretary shall use a peer review process to review

applications under this subpart and to make recommendations for

funding under this subpart to the Secretary.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 420I, as added Pub. L. 105-244,

title IV, Sec. 411, Oct. 7, 1998, 112 Stat. 1673.)

-COD-

CODIFICATION

Another section 411 of Pub. L. 105-244 amended section 1071 of

this title.

-CITE-

20 USC Sec. 1070f-6 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part A - Grants to Students in Attendance at Institutions of Higher

Education

subpart 8 - learning anytime anywhere partnerships

-HEAD-

Sec. 1070f-6. Authorization of appropriations

-STATUTE-

There are authorized to be appropriated to carry out this subpart

$10,000,000 for fiscal year 1999 and such sums as may be necessary

for each of the 4 succeeding fiscal years.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 420J, as added Pub. L. 105-244,

title IV, Sec. 411, Oct. 7, 1998, 112 Stat. 1673.)

-COD-

CODIFICATION

Another section 411 of Pub. L. 105-244 amended section 1071 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1070f-1 of this title.

-CITE-

20 USC Part B - Federal Family Education Loan Program 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part B - Federal Family Education Loan Program

.

-HEAD-

Part B - Federal Family Education Loan Program

-COD-

CODIFICATION

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

comprising this part, was originally enacted by Pub. L. 89-329,

title IV, Nov. 8, 1965, 79 Stat. 1236, and amended by Pub. L.

89-698, Oct. 29, 1966, 80 Stat. 1066; Pub. L. 89-752, Nov. 3, 1966,

80 Stat. 1240; Pub. L. 89-794, Nov. 8, 1966, 80 Stat. 1451; Pub. L.

90-460, Aug. 3, 1968, 82 Stat. 634; Pub. L. 90-575, Oct. 16, 1968,

82 Stat. 1014; Pub. L. 91-206, Mar. 10, 1970, 84 Stat. 49; Pub. L.

92-318, June 23, 1972, 86 Stat. 235; Pub. L. 93-269, Apr. 18, 1974,

88 Stat. 87; Pub. L. 93-604, Jan. 2, 1975, 88 Stat. 1959; Pub. L.

94-273, Apr. 21, 1976, 90 Stat. 375; Pub. L. 94-328, June 30, 1976,

90 Stat. 727; Pub. L. 94-482, Oct. 12, 1976, 90 Stat. 2081; S. Res.

4, Feb. 4, 1977; Pub. L. 95-43, June 15, 1977, 91 Stat. 213; Pub.

L. 95-561, Nov. 1, 1978, 92 Stat. 2143; Pub. L. 95-566, Nov. 1,

1978, 92 Stat. 2402; Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2549;

Pub. L. 95-630, Nov. 10, 1978, 92 Stat. 3641; S. Res. 30, Mar. 7,

1979; Pub. L. 96-49, Aug. 13, 1979, 93 Stat. 351; Pub. L. 96-88,

Oct. 17, 1979, 93 Stat. 668; Pub. L. 96-374, Oct. 3, 1980, 94 Stat.

1367; Pub. L. 97-35, Aug. 13, 1981, 95 Stat. 357; Pub. L. 97-115,

Dec. 29, 1981, 95 Stat. 1595; Pub. L. 97-301, Oct. 13, 1982, 96

Stat. 1400; Pub. L. 98-79, Aug. 15, 1983, 97 Stat. 476; Pub. L.

99-272, Apr. 7, 1986, 100 Stat. 82; Pub. L. 99-320, May 23, 1986,

100 Stat. 491. Such part is shown herein, however, as having been

added by Pub. L. 99-498, title IV, Sec. 402(a), Oct. 17, 1986, 100

Stat. 1353, without reference to such intervening amendments

because of the extensive revision of part B by Pub. L. 99-498.

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 1002, 1070a, 1085, 1087-0,

1087d, 1087e, 1087h, 1087tt, 1088, 1090, 1091, 1091a, 1091b, 1092,

1092b, 1092c, 1094, 1095a, 1097, 1098c, 1099c, 1099c-1, 2373 of

this title; title 2 sections 60c-5, 906; title 5 section 5379;

title 10 sections 2171, 2174, 16301, 16302; title 11 section 525;

title 26 sections 144, 6103; title 38 section 3698; title 42

sections 292a, 653, 4953.

-CITE-

20 USC Sec. 1071 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part B - Federal Family Education Loan Program

-HEAD-

Sec. 1071. Statement of purpose; nondiscrimination; and

appropriations authorized

-STATUTE-

(a) Purpose; discrimination prohibited

(1) Purpose

The purpose of this part is to enable the Secretary -

(A) to encourage States and nonprofit private institutions

and organizations to establish adequate loan insurance programs

for students in eligible institutions (as defined in section

1085 of this title),

(B) to provide a Federal program of student loan insurance

for students or lenders who do not have reasonable access to a

State or private nonprofit program of student loan insurance

covered by an agreement under section 1078(b) of this title,

(C) to pay a portion of the interest on loans to qualified

students which are insured under this part, and

(D) to guarantee a portion of each loan insured under a

program of a State or of a nonprofit private institution or

organization which meets the requirements of section

1078(a)(1)(B) of this title.

(2) Discrimination by creditors prohibited

No agency, organization, institution, bank, credit union,

corporation, or other lender who regularly extends, renews, or

continues credit or provides insurance under this part shall

exclude from receipt or deny the benefits of, or discriminate

against any borrower or applicant in obtaining, such credit or

insurance on the basis of race, national origin, religion, sex,

marital status, age, or handicapped status.

(b) Authorization of appropriations

For the purpose of carrying out this part -

(1) there are authorized to be appropriated to the student loan

insurance fund (established by section 1081 of this title) (A)

the sum of $1,000,000, and (B) such further sums, if any, as may

become necessary for the adequacy of the student loan insurance

fund,

(2) there are authorized to be appropriated, for payments under

section 1078 of this title with respect to interest on student

loans and for payments under section 1087 of this title, such

sums for the fiscal year ending June 30, 1966, and succeeding

fiscal years, as may be required therefor,

(3) there is authorized to be appropriated the sum of

$17,500,000 for making advances pursuant to section 1072 of this

title for the reserve funds of State and nonprofit private

student loan insurance programs,

(4) there are authorized to be appropriated (A) the sum of

$12,500,000 for making advances after June 30, 1968, pursuant to

sections 1072(a) and (b) of this title, and (B) such sums as may

be necessary for making advances pursuant to section 1072(c) of

this title, for the reserve funds of State and nonprofit private

student loan insurance programs, and

(5) there are authorized to be appropriated such sums as may be

necessary for the purpose of paying an administrative cost

allowance in accordance with section 1078(f) of this title to

guaranty agencies.

Sums appropriated under paragraphs (1), (2), (4), and (5) of this

subsection shall remain available until expended. No additional

sums are authorized to be appropriated under paragraph (3) or (4)

of this subsection by reason of the reenactment of such paragraphs

by the Higher Education Amendments of 1986.

(c) Designation

The program established under this part shall be referred to as

the ''Robert T. Stafford Federal Student Loan Program''. Loans made

pursuant to sections 1077 and 1078 of this title shall be known as

''Federal Stafford Loans''.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 421, as added Pub. L. 99-498, title

IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1353; amended Pub. L.

100-297, title II, Sec. 2601(a), Apr. 28, 1988, 102 Stat. 330; Pub.

L. 100-369, Sec. 8, July 18, 1988, 102 Stat. 837; Pub. L. 102-325,

title IV, Sec. 411(a)(2), (c), July 23, 1992, 106 Stat. 510, 511;

Pub. L. 105-244, title IV, Sec. 411, Oct. 7, 1998, 112 Stat. 1673.)

-REFTEXT-

REFERENCES IN TEXT

The Higher Education Amendments of 1986, referred to in subsec.

(b), is Pub. L. 99-498, Oct. 17, 1986, 100 Stat. 1268. For complete

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

out under section 1001 of this title and Tables.

-COD-

CODIFICATION

Another section 411 of Pub. L. 105-244 enacted subpart 8 (Sec.

1070f et seq.) of part A of this subchapter.

-MISC3-

PRIOR PROVISIONS

A prior section 1071, Pub. L. 89-329, title IV, Sec. 421, Nov. 8,

1965, 79 Stat. 1236; Pub. L. 90-460, Sec. 2(b)(3), 3(a), Aug. 3,

1968, 82 Stat. 635, 636; Pub. L. 90-575, title I, Sec. 113(b)(1),

114(a), 119(b), Oct. 16, 1968, 82 Stat. 1021, 1027; Pub. L. 94-482,

title I, Sec. 127(a), Oct. 12, 1976, 90 Stat. 2099; Pub. L. 95-43,

Sec. 1(a)(8)-(10), June 15, 1977, 91 Stat. 213; Pub. L. 96-374,

title XIII, Sec. 1391(a)(1), (2), Oct. 3, 1980, 94 Stat. 1503; Pub.

L. 98-79, Sec. 6, Aug. 15, 1983, 97 Stat. 482, related to statement

of purpose of, appropriations for, and implementation of programs

to provide low-interest insured loans to students in institutions

of higher education, prior to the general revision of this part by

Pub. L. 99-498.

AMENDMENTS

1998 - Subsec. (d). Pub. L. 105-244 struck out heading and text

of subsec. (d). Text read as follows: ''Notwithstanding any other

provision of this part, no new loan guarantees shall be issued

after June 30, 1994, if the Secretary does not issue final

regulations implementing the changes made to this part under the

Higher Education Amendments of 1992 prior to that date. The

authority to issue new loan guarantees shall resume upon the

Secretary's issuance of such regulations. This subsection shall

not provide the basis for avoiding any requirements for notice and

public hearing on such regulations.''

1992 - Subsec. (c). Pub. L. 102-325, Sec. 411(a)(2), added

subsec. (c) and struck out former subsec. (c) which read as

follows: ''The program established under this part shall be

referred to as the 'Robert T. Stafford Student Loan Program'. Loans

made under this part shall be known as 'Stafford Loans'.''

Subsec. (d). Pub. L. 102-325, Sec. 411(c), added subsec. (d).

1988 - Subsec. (c). Pub. L. 100-369 substituted ''shall be

referred'' for ''may be referred'' and inserted provision

identifying loans made under this part as ''Stafford Loans''.

Pub. L. 100-297 added subsec. (c).

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-325 effective July 23, 1992, with

changes in the designation or names of loans or programs under this

part effective with respect to applications or other documents

(used in making such loans) that are printed after July 23, 1992,

see section 432 of Pub. L. 102-325, set out as a note under section

1078 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Pub. L. 100-297, title VI, Sec. 6303, Apr. 28, 1988, 102 Stat.

431, as amended by Pub. L. 100-351, June 27, 1988, 102 Stat. 661;

Pub. L. 106-400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675, provided

that:

''(a) General Rule. - Except as otherwise provided, this Act and

the amendments made by this Act (see Tables for classification)

shall take effect July 1, 1988.

''(b) Special Rules. - (1) Any provision of this Act or any

amendment made by this Act which authorizes appropriations for

fiscal year 1988 shall take effect on the date of the enactment of

this Act (Apr. 28, 1988).

''(2) The provisions of section 2402, relating to the National

Center for Vocational Research, shall take effect on April 10,

1988.

''(3) The amendments made by section 3403 (amending sections

1221e and 1221e-1 of this title) shall take effect for assessments

made after September 30, 1989, with respect to State data.

''(4) Allotments to States made under chapters 1 and 2 of title I

of the Elementary and Secondary Education Act of 1965 (formerly 20

U.S.C. 2701 et seq., 2911 et seq.) and under the Adult Education

Act (formerly 20 U.S.C. 1201 et seq.) from amounts appropriated by

the joint resolution entitled 'Joint resolution making further

continuing appropriations for the fiscal year 1988, and for other

purposes', approved December 22, 1987 (Public Law 100-202), shall

be computed in accordance with the provisions of law applicable to

allotments to States under chapters 1 and 2 of the Education

Consolidation and Improvement Act of 1981 (formerly 20 U.S.C. 3801

et seq., 3811 et seq.) and under the Adult Education Act,

respectively, as such Acts were in effect on the day before the

date of the enactment of this Act (Apr. 28, 1988).

''(5) Amounts appropriated by the joint resolution entitled

'Joint resolution making further continuing appropriations for the

fiscal year 1988, and for other purposes', approved December 22,

1987 (Public Law 100-202), for the following programs shall be

awarded in accordance with the applicable provisions of law in

effect on the day before the date of the enactment of this Act

(Apr. 28, 1988):

''(A) Programs under subchapter D of chapter 2 of the Education

Consolidation and Improvement Act of 1981 (formerly 20 U.S.C.

3851 et seq.), except that projects under section 583(c)

(formerly 20 U.S.C. 3851(c)) may not be reviewed by a program

significance panel.

''(B) National programs under the Adult Education Act (formerly

20 U.S.C. 1201 et seq.).

''(C) Programs under the Indian Education Act (Pub. L. 92-318,

title IV, see Tables for classification).

''(D) Programs under title II of the Education for Economic

Security Act (formerly 20 U.S.C. 3961 et seq.).

''(E) The program under section 702 of the McKinney-Vento

Homeless Assistance Act (formerly 42 U.S.C. 11421).

''(6) The provisions of part A of title II of this Act (Sec. 2001

to 2034 of Pub. L. 100-297, amending sections 236 et seq. and 631

et seq. of this title), excluding sections 2014(e) and 2018

(amending section 238 of this title and enacting provisions set out

as a note under section 238 of this title), shall apply only with

respect to amounts appropriated for fiscal years beginning after

September 30, 1988.

''(7) The amendments made by section 6001 (amending section 11421

of Title 42, The Public Health and Welfare), relating to literacy

training of homeless adults, shall take effect on October 1, 1988.

''(8) Any election under section 5209(b)(1) (25 U.S.C.

2508(b)(1)) conveyed to the Secretary prior to August 1, 1988,

shall take effect for the fiscal year beginning on October 1, 1988,

and thereafter.''

EFFECTIVE DATE

Section 402(b)-(d) of Pub. L. 99-498, as amended by Pub. L.

100-50, Sec. 22(b), June 3, 1987, 101 Stat. 361, provided that:

''(b) Effective Dates. - The changes made in part B of title IV

of the Act (20 U.S.C. 1071 et seq.) by the amendment made by

subsection (a) of this section shall take effect on the date of

enactment of this Act (Oct. 17, 1986), except -

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

''(2) the changes in sections 427(a)(2)(C) and 428(b)(1)(M) of

the Act (20 U.S.C. 1077(a)(2)(C), 1078(b)(1)(M)) (other than

clauses (viii), (ix), and (x) of each such section) shall apply

only to loans to new borrowers that (A) are made to cover the

cost of instruction for periods of enrollment beginning on or

after July 1, 1987; or (B) are disbursed on or after July 1,

1987;

''(3) the changes made in sections 425(a), 428(b)(1)(A), and

428(b)(1)(B) of the Act (20 U.S.C. 1075(a), 1078(b)(1)(A), (B))

shall apply with respect only to loans disbursed on or after

January 1, 1987, or made to cover the costs of instruction for

periods of enrollment beginning on or after January 1, 1987;

''(4) the changes made in subsections (a), (b), and (d) of

section 433 of the Act (20 U.S.C. 1083(a), (b), (d)) shall apply

with respect only to loans disbursed on or after January 1, 1987,

or made to cover the costs of instruction for periods of

enrollment beginning on or after January 1, 1987;

''(5) the changes in section 428(b)(1)(H) (20 U.S.C.

1078(b)(1)(H)) shall apply with respect only to loans for which

the borrower files an application on or after July 1, 1987;

''(6) the changes in sections 435(d)(5) and 438(d) of the Act

(20 U.S.C. 1085(d)(5), 1087-1(d)) shall take effect 30 days after

the date of enactment of this Act (Oct. 17, 1986); and

''(7) the changes made in section 438(b) (20 U.S.C. 1087-1(b))

shall take effect with respect to loans disbursed on or after 30

days after the date of enactment of this Act (Oct. 17, 1986) or

made to cover the costs of instruction for periods of enrollment

beginning on or after 30 days after the date of enactment of this

Act.

''(c) Changes Effective Without Regard to Regulations;

Republication of Regulations. - The changes made in part B of title

IV of the Act (20 U.S.C. 1071 et seq.) by the amendment made by

subsection (a) of this section shall be effective in accordance

with subsection (b) of this section without regard to whether such

changes are reflected in the regulations prescribed by the

Secretary of Education for the purpose of such part.

''(d) New Borrowers. - For the purpose of this section, the term

'new borrower' means, with respect to any date, an individual who

on that date has no outstanding balance of principal or interest

owing on any loan made, insured, or guaranteed under part B of

title IV of the Act (20 U.S.C. 1071 et seq.).''

STUDY OF ROLE OF GUARANTY AGENCIES

Section 1401 of Pub. L. 102-325 directed Secretary of Education

to review role of guaranty agencies within Federal Family Education

Loan Program by examining administrative and financial operations

of such agencies and the relationships between guaranty agencies

and State governments and report to Congress within 1 year of July

23, 1992, on the review, prior to repeal by Pub. L. 105-332, Sec.

6(b)(2), Oct. 31, 1998, 112 Stat. 3128.

GENERAL ACCOUNTING OFFICE REPORTS

Sections 1311 to 1314 of Pub. L. 99-498, as amended by Pub. L.

100-50, Sec. 23(6), June 3, 1987, 101 Stat. 362, directed

Comptroller General to conduct studies on practices of State

guaranty agencies and multistate guarantors under the student loan

program, on the feasibility and efficiency of permitting students

to establish multiple year lines of credit with eligible lenders,

on the impact of the multiple disbursement system on the ability of

students and institutions of higher education to meet expenses, and

on the cost, efficiency, and impact of the consolidation loan

program established by Pub. L. 99-498, and directed Comptroller

General to make and submit a report to Congress on each study not

later than two years after Oct. 17, 1986, prior to repeal by Pub.

L. 105-332, Sec. 6(a), Oct. 31, 1998, 112 Stat. 3127.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1072 of this title.

-CITE-

20 USC Sec. 1072 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part B - Federal Family Education Loan Program

-HEAD-

Sec. 1072. Advances for reserve funds of State and nonprofit

private loan insurance programs

-STATUTE-

(a) Purpose of and authority for advances to reserve funds

(1) Purpose; eligible recipients

From sums appropriated pursuant to paragraphs (3) and (4)(A) of

section 1071(b) of this title, the Secretary is authorized to

make advances to any State with which the Secretary has made an

agreement pursuant to section 1078(b) of this title for the

purpose of helping to establish or strengthen the reserve fund of

the student loan insurance program covered by that agreement. If

for any fiscal year a State does not have a student loan

insurance program covered by an agreement made pursuant to

section 1078(b) of this title, and the Secretary determines after

consultation with the chief executive officer of that State that

there is no reasonable likelihood that the State will have such a

student loan insurance program for such year, the Secretary may

make advances for such year for the same purpose to one or more

nonprofit private institutions or organizations with which the

Secretary has made an agreement pursuant to section 1078(b) of

this title in order to enable students in the State to

participate in a program of student loan insurance covered by

such an agreement. The Secretary may make advances under this

subsection both to a State program (with which he has such an

agreement) and to one or more nonprofit private institutions or

organizations (with which he has such an agreement) in that State

if he determines that such advances are necessary in order that

students in each eligible institution have access through such

institution to a student loan insurance program which meets the

requirements of section 1078(b)(1) of this title.

(2) Matching requirement

No advance shall be made after June 30, 1968, unless matched by

an equal amount from non-Federal sources. Such equal amount may

include the unencumbered non-Federal portion of a reserve fund.

As used in the preceding sentence, the term ''unencumbered

non-Federal portion'' means the amount (determined as of the time

immediately preceding the making of the advance) of the reserve

fund less the greater of -

(A) the sum of -

(i) advances made under this section prior to July 1, 1968;

(ii) an amount equal to twice the amount of advances made

under this section after June 30, 1968, and before the

advance for purposes of which the determination is made; and

(iii) the proceeds of earnings on advances made under this

section; or

(B) any amount which is required to be maintained in such

fund pursuant to State law or regulation, or by agreement with

lenders, as a reserve against the insurance of outstanding

loans.

Except as provided in section 1078(c)(9)(E) or (F) of this title,

such unencumbered non-Federal portion shall not be subject to

recall, repayment, or recovery by the Secretary.

(3) Terms and conditions; repayment

Advances pursuant to this subsection shall be upon such terms

and conditions (including conditions relating to the time or

times of payment) consistent with the requirements of section

1078(b) of this title as the Secretary determines will best carry

out the purpose of this section. Advances made by the Secretary

under this subsection shall be repaid within such period as the

Secretary may deem to be appropriate in each case in the light of

the maturity and solvency of the reserve fund for which the

advance was made.

(b) Limitations on total advances

(1) In general

The total of the advances from the sums appropriated pursuant

to paragraph (4)(A) of section 1071(b) of this title to nonprofit

private institutions and organizations for the benefit of

students in any State and to such State may not exceed an amount

which bears the same ratio to such sums as the population of such

State aged 18 to 22, inclusive, bears to the population of all

the States aged 18 to 22 inclusive, but such advances may

otherwise be in such amounts as the Secretary determines will

best achieve the purposes for which they are made. The amount

available for advances to any State shall not be less than

$25,000 and any additional funds needed to meet this requirement

shall be derived by proportionately reducing (but not below

$25,000) the amount available for advances to each of the

remaining States.

(2) Calculation of population

For the purpose of this subsection, the population aged 18 to

22, inclusive, of each State and of all the States shall be

determined by the Secretary on the basis of the most recent

satisfactory data available to him.

(c) Advances for insurance obligations

(1) Use for payment of insurance obligations

From sums appropriated pursuant to section 1071(b)(4)(B) of

this title, the Secretary shall advance to each State which has

an agreement with the Secretary under section 1078(c) of this

title with respect to a student loan insurance program, an amount

determined in accordance with paragraph (2) of this subsection to

be used for the purpose of making payments under the State's

insurance obligations under such program.

(2) Amount of advances

(A) Except as provided in subparagraph (B), the amount to be

advanced to each such State shall be equal to 10 percent of the

principal amount of loans made by lenders and insured by such

agency on those loans on which the first payment of principal

became due during the fiscal year immediately preceding the

fiscal year in which the advance is made.

(B) The amount of any advance determined according to

subparagraph (A) of this paragraph shall be reduced by -

(i) the amount of any advance or advances made to such State

pursuant to this subsection at an earlier date; and

(ii) the amount of the unspent balance of the advances made

to a State pursuant to subsection (a) of this section.

Notwithstanding subparagraph (A) and the preceding sentence of

this subparagraph, but subject to subparagraph (D) of this

paragraph, the amount of any advance to a State described in

paragraph (5)(A) for the first year of its eligibility under such

paragraph, and the amount of any advance to any State described

in paragraph (5)(B) for each year of its eligibility under such

paragraph, shall not be less than $50,000.

(C) For the purpose of subparagraph (B), the unspent balance of

the advances made to a State pursuant to subsection (a) of this

section shall be that portion of the balance of the State's

reserve fund (remaining at the time of the State's first request

for an advance pursuant to this subsection) which bears the same

ratio to such balance as the Federal advances made and not

returned by such State, pursuant to subsection (a) of this

section, bears to the total of all past contributions to such

reserve funds from all sources (other than interest on investment

of any portion of the reserve fund) contributed since the date

such State executed an agreement pursuant to section 1078(b) of

this title.

(D) If the sums appropriated for any fiscal year for paying the

amounts determined under subparagraphs (A) and (B) are not

sufficient to pay such amounts in full, then such amounts shall

be reduced -

(i) by ratably reducing that portion of the amount allocated

to each State which exceeds $50,000; and

(ii) if further reduction is required, by equally reducing

the $50,000 minimum allocation of each State.

If additional sums become available for paying such amounts for

any fiscal year during which the preceding sentence has been

applied, such reduced amounts shall be increased on the same

basis as they were reduced.

(3) Use of earnings for insurance obligations

The earnings, if any, on any investments of advances received

pursuant to this subsection must be used for making payments

under the State's insurance obligations.

(4) Repayment of advances

Advances made by the Secretary under this subsection shall,

subject to subsection (d) of this section, be repaid within such

period as the Secretary may deem to be appropriate and shall be

deposited in the fund established by section 1081 of this title.

(5) Limitation on number of advances

Except as provided in paragraph (7), advances pursuant to this

subsection shall be made to a State -

(A) in the case of a State which is actively carrying on a

program under an agreement pursuant to section 1078(b) of this

title which was entered into before October 12, 1976, upon such

date as such State may request, but not before October 1, 1977,

and on the same day of each of the 2 succeeding calendar years

after the date so requested; and

(B) in the case of a State which enters into an agreement

pursuant to section 1078(b) of this title on or after October

12, 1976, or which is not actively carrying on a program under

an agreement pursuant to such section on such date, upon such

date as such State may request, but not before October 1, 1977,

and on the same day of each of the 4 succeeding calendar years

after the date so requested of the advance.

(6) Payment of advances where no State program

(A) If for any fiscal year a State does not have a student loan

insurance program covered by an agreement made pursuant to

section 1078(b) of this title, and the Secretary determines after

consultation with the chief executive officer of that State that

there is no reasonable likelihood that the State will have such a

student loan insurance program for such year, the Secretary may

make advances pursuant to this subsection for such year for the

same purpose to one or more nonprofit private institutions or

organizations with which he has made an agreement pursuant to

subsection (c), as well as subsection (b), of section 1078 of

this title and subparagraph (B) of this paragraph in order to

enable students in that State to participate in a program of

student loan insurance covered by such agreements.

(B) The Secretary may enter into an agreement with a private

nonprofit institution or organization for the purpose of this

paragraph under which such institution or organization -

(i) agrees to establish within such State at least one office

with sufficient staff to handle written, electronic, and

telephone inquiries from students, eligible lenders, and other

persons in the State, to encourage maximum commercial lender

participation within the State, and to conduct periodic visits

to at least the major eligible lenders within the State;

(ii) agrees that its insurance will not be denied any student

because of his or her choice of eligible institutions; and

(iii) certifies that it is neither an eligible institution,

nor has any substantial affiliation with an eligible

institution.

(7) Emergency advances

The Secretary is authorized to make advances, on terms and

conditions satisfactory to the Secretary, to a guaranty agency -

(A) in accordance with section 1078(j) of this title, in

order to ensure that the guaranty agency shall make loans as

the lender-of-last-resort; or

(B) if the Secretary is seeking to terminate the guaranty

agency's agreement, or assuming the guaranty agency's

functions, in accordance with section 1078(c)(9)(F)(v) of this

title, in order to assist the agency in meeting its immediate

cash needs, ensure the uninterrupted payment of claims, or

ensure that the guaranty agency shall make loans as described

in subparagraph (A).

(d) Recovery of advances during fiscal years 1988 and 1989

(1) Amount and use of recovered funds

Notwithstanding any other provision of this section, advances

made by the Secretary under this section shall be repaid in

accordance with this subsection and shall be deposited in the

fund established by section 1081 of this title. The Secretary

shall, in accordance with the requirements of paragraph (2),

recover (and so deposit) an amount equal to $75,000,000 during

fiscal year 1988 and an amount equal to $35,000,000 for fiscal

year 1989.

(2) Determination of guaranty agency obligations

In determining the amount of advances which shall be repaid by

a guaranty agency under paragraph (1), the Secretary -

(A) shall consider the solvency and maturity of the reserve

and insurance funds of the guaranty agency assisted by such

advances, as determined by the Comptroller General taking into

account the requirements of State law as in effect on October

17, 1986;

(B) shall not seek repayment of such advances from any State

described in subsection (c)(5)(B) of this section during any

year of its eligibility under such subsection; and

(C) shall not seek repayment of such advances from any State

if such repayment encumbers the reserve fund requirement of

State law as in effect on October 17, 1986.

(e) Correction for errors under reduction of excess cash reserves

(1) In general

The Secretary shall pay any guaranty agency the amount of

reimbursement of claims under section 1078(c)(1) of this title,

filed between September 1, 1988, and December 31, 1989, which

were previously withheld or canceled in order to be applied to

satisfy such agency's obligation to eliminate excess cash

reserves held by such agency, based on the maximum cash reserve

(as described in subsection (e) of this section as in effect on

September 1, 1988) permitted at the end of 1986, if such maximum

cash reserve was miscalculated because of erroneous financial

information provided by such agency to the Secretary and if (A)

such erroneous information is verified by an audited financial

statement of the reserve fund, signed by a certified public

accountant, and (B) such audited financial statement is provided

to the Secretary prior to January 1, 1993.

(2) Amount

The amount of reimbursement for claims shall be equal to the

amount of reimbursement for claims withheld or canceled in order

to be applied to such agency's obligation to eliminate excess

cash reserves which exceeds the amount of that which would have

been withheld or canceled if the maximum excess cash reserves had

been accurately calculated.

(f) Refund of cash reserve payments

The Secretary shall, within 30 days after July 23, 1992, pay the

full amount of payments withheld or canceled under paragraph (3) of

this subsection to any guaranty agency which -

(1) was required to eliminate excess cash reserves, based on

the maximum cash reserve (as described in subsection (e) of this

section as in effect on September 1, 1988) permitted at the end

of 1986;

(2) appealed the Secretary's demand that such agency should

eliminate such excess cash reserves and received a waiver of a

portion of the amount of such excess cash reserves to be

eliminated;

(3) had payments under section 1078(c)(1) of this title or

section 1078(f) of this title previously withheld or canceled in

order to be applied to satisfy such agency's obligation to

eliminate excess cash reserves held by such agency, based on the

maximum cash reserve (as described in subsection (e) of this

section as in effect on September 1, 1988) permitted at the end

of 1986; and

(4) according to a Department of Education review that was

completed and forwarded to such guaranty agency prior to January

1, 1992, is expected to become insolvent during or before 1996

and the payments withheld or canceled under paragraph (3) of this

subsection are a factor in such agency's impending insolvency.

(g) Preservation and recovery of guaranty agency reserves

(1) Authority to recover funds

Notwithstanding any other provision of law, the reserve funds

of the guaranty agencies, and any assets purchased with such

reserve funds, regardless of who holds or controls the reserves

or assets, shall be considered to be the property of the United

States to be used in the operation of the program authorized by

this part. However, the Secretary may not require the return of

all reserve funds of a guaranty agency to the Secretary unless

the Secretary determines that such return is in the best interest

of the operation of the program authorized by this part, or to

ensure the proper maintenance of such agency's funds or assets or

the orderly termination of the guaranty agency's operations and

the liquidation of its assets. The reserves shall be maintained

by each guaranty agency to pay program expenses and contingent

liabilities, as authorized by the Secretary, except that -

(A) the Secretary may direct a guaranty agency to return to

the Secretary a portion of its reserve fund which the Secretary

determines is unnecessary to pay the program expenses and

contingent liabilities of the guaranty agency;

(B) the Secretary may direct the guaranty agency to require

the return, to the guaranty agency or to the Secretary, of any

reserve funds or assets held by, or under the control of, any

other entity, which the Secretary determines are necessary to

pay the program expenses and contingent liabilities of the

guaranty agency, or which are required for the orderly

termination of the guaranty agency's operations and the

liquidation of its assets;

(C) the Secretary may direct a guaranty agency, or such

agency's officers or directors, to cease any activities

involving expenditure, use or transfer of the guaranty agency's

reserve funds or assets which the Secretary determines is a

misapplication, misuse, or improper expenditure of such funds

or assets; and

(D) any such determination under subparagraph (A) or (B)

shall be based on standards prescribed by regulations that are

developed through negotiated rulemaking and that include

procedures for administrative due process.

(2) Termination provisions in contracts

(A) To ensure that the funds and assets of the guaranty agency

are preserved, any contract with respect to the administration of

a guaranty agency's reserve funds, or the administration of any

assets purchased or acquired with the reserve funds of the

guaranty agency, that is entered into or extended by the guaranty

agency, or any other party on behalf of or with the concurrence

of the guaranty agency, after August 10, 1993, shall provide that

the contract is terminable by the Secretary upon 30 days notice

to the contracting parties if the Secretary determines that such

contract includes an impermissible transfer of the reserve funds

or assets, or is otherwise inconsistent with the terms or

purposes of this section.

(B) The Secretary may direct a guaranty agency to suspend or

cease activities under any contract entered into by or on behalf

of such agency after January 1, 1993, if the Secretary determines

that the misuse or improper expenditure of such guaranty agency's

funds or assets or such contract provides unnecessary or improper

benefits to such agency's officers or directors.

(3) Penalties

Violation of any direction issued by the Secretary under this

subsection may be subject to the penalties described in section

1097 of this title.

(4) Availability of funds

Any funds that are returned or otherwise recovered by the

Secretary pursuant to this subsection shall be available for

expenditure for expenses pursuant to section 1087h of this title.

(h) Recall of reserves; limitations on use of reserve funds and

assets

(1) In general

Notwithstanding any other provision of law, the Secretary

shall, except as otherwise provided in this subsection, recall

$1,000,000,000 from the reserve funds held by guaranty agencies

on September 1, 2002.

(2) Deposit

Funds recalled by the Secretary under this subsection shall be

deposited in the Treasury.

(3) Required share

The Secretary shall require each guaranty agency to return

reserve funds under paragraph (1) based on the agency's required

share of recalled reserve funds held by guaranty agencies as of

September 30, 1996. For purposes of this paragraph, a guaranty

agency's required share of recalled reserve funds shall be

determined as follows:

(A) The Secretary shall compute each guaranty agency's

reserve ratio by dividing (i) the amount held in the agency's

reserve funds as of September 30, 1996 (but reflecting later

accounting or auditing adjustments approved by the Secretary),

by (ii) the original principal amount of all loans for which

the agency has an outstanding insurance obligation as of such

date, including amounts of outstanding loans transferred to the

agency from another guaranty agency.

(B) If the reserve ratio of any guaranty agency as computed

under subparagraph (A) exceeds 2.0 percent, the agency's

required share shall include so much of the amounts held in the

agency's reserve funds as exceed a reserve ratio of 2.0

percent.

(C) If any additional amount is required to be recalled under

paragraph (1) (after deducting the total of the required shares

calculated under subparagraph (B)), such additional amount

shall be obtained by imposing on each guaranty agency an equal

percentage reduction in the amount of the agency's reserve

funds remaining after deduction of the amount recalled under

subparagraph (B), except that such percentage reduction under

this subparagraph shall not result in the agency's reserve

ratio being reduced below 0.58 percent. The equal percentage

reduction shall be the percentage obtained by dividing -

(i) the additional amount required to be recalled (after

deducting the total of the required shares calculated under

subparagraph (B)), by

(ii) the total amount of all such agencies' reserve funds

remaining (after deduction of the required shares calculated

under such subparagraph).

(D) If any additional amount is required to be recalled under

paragraph (1) (after deducting the total of the required shares

calculated under subparagraphs (B) and (C)), such additional

amount shall be obtained by imposing on each guaranty agency

with a reserve ratio (after deducting the required shares

calculated under such subparagraphs) in excess of 0.58 percent

an equal percentage reduction in the amount of the agency's

reserve funds remaining (after such deduction) that exceed a

reserve ratio of 0.58 percent. The equal percentage reduction

shall be the percentage obtained by dividing -

(i) the additional amount to be recalled under paragraph

(1) (after deducting the amount recalled under subparagraphs

(B) and (C)), by

(ii) the total amount of all such agencies' reserve funds

remaining (after deduction of the required shares calculated

under such subparagraphs) that exceed a reserve ratio of 0.58

percent.

(4) Restricted accounts required

(A) In general

Within 90 days after the beginning of each of the fiscal

years 1998 through 2002, each guaranty agency shall transfer a

portion of the agency's required share determined under

paragraph (3) to a restricted account established by the agency

that is of a type selected by the agency with the approval of

the Secretary. Funds transferred to such restricted accounts

shall be invested in obligations issued or guaranteed by the

United States or in other similarly low-risk securities.

(B) Requirement

A guaranty agency shall not use the funds in such a

restricted account for any purpose without the express written

permission of the Secretary, except that a guaranty agency may

use the earnings from such restricted account for default

reduction activities.

(C) Installments

In each of fiscal years 1998 through 2002, each guaranty

agency shall transfer the agency's required share to such

restricted account in 5 equal annual installments, except that

-

(i) a guaranty agency that has a reserve ratio (as computed

under subparagraph (3)(A)) equal to or less than 1.10 percent

may transfer the agency's required share to such account in 4

equal installments beginning in fiscal year 1999; and

(ii) a guaranty agency may transfer such required share to

such account in accordance with such other payment schedules

as are approved by the Secretary.

(5) Shortage

If, on September 1, 2002, the total amount in the restricted

accounts described in paragraph (4) is less than the amount the

Secretary is required to recall under paragraph (1), the

Secretary shall require the return of the amount of the shortage

from other reserve funds held by guaranty agencies under

procedures established by the Secretary. The Secretary shall

first attempt to obtain the amount of such shortage from each

guaranty agency that failed to transfer the agency's required

share to the agency's restricted account in accordance with

paragraph (4).

(6) Enforcement

(A) In general

The Secretary may take such reasonable measures, and require

such information, as may be necessary to ensure that guaranty

agencies comply with the requirements of this subsection.

(B) Prohibition

If the Secretary determines that a guaranty agency has failed

to transfer to a restricted account any portion of the agency's

required share under this subsection, the agency may not

receive any other funds under this part until the Secretary

determines that the agency has so transferred the agency's

required share.

(C) Waiver

The Secretary may waive the requirements of subparagraph (B)

for a guaranty agency described in such subparagraph if the

Secretary determines that there are extenuating circumstances

beyond the control of the agency that justify such waiver.

(7) Limitation

(A) Restriction on other authority

The Secretary shall not have any authority to direct a

guaranty agency to return reserve funds under subsection

(g)(1)(A) of this section during the period from August 5,

1997, through September 30, 2002.

(B) Use of termination collections

Any reserve funds directed by the Secretary to be returned to

the Secretary under subsection (g)(1)(B) of this section during

such period that do not exceed a guaranty agency's required

share of recalled reserve funds under paragraph (3) -

(i) shall be used to satisfy the agency's required share of

recalled reserve funds; and

(ii) shall be deposited in the restricted account

established by the agency under paragraph (4), without regard

to whether such funds exceed the next installment required

under such paragraph.

(C) Use of sanctions collections

Any reserve funds directed by the Secretary to be returned to

the Secretary under subsection (g)(1)(C) of this section during

such period that do not exceed a guaranty agency's next

installment under paragraph (4) -

(i) shall be used to satisfy the agency's next installment;

and

(ii) shall be deposited in the restricted account

established by the agency under paragraph (4).

(D) Balance available to Secretary

Any reserve funds directed by the Secretary to be returned to

the Secretary under subparagraph (B) or (C) of subsection

(g)(1) of this section that remain after satisfaction of the

requirements of subparagraphs (B) and (C) of this paragraph

shall be deposited in the Treasury.

(8) Definitions

For the purposes of this subsection:

(A) Default reduction activities

The term ''default reduction activities'' means activities to

reduce student loan defaults that improve, strengthen, and

expand default prevention activities, such as -

(i) establishing a program of partial loan cancellation to

reward disadvantaged borrowers for good repayment histories

with their lenders;

(ii) establishing a financial and debt management

counseling program for high-risk borrowers that provides

long-term training (beginning prior to the first disbursement

of the borrower's first student loan and continuing through

the completion of the borrower's program of education or

training) in budgeting and other aspects of financial

management, including debt management;

(iii) establishing a program of placement counseling to

assist high-risk borrowers in identifying employment or

additional training opportunities; and

(iv) developing public service announcements that would

detail consequences of student loan default and provide

information regarding a toll-free telephone number

established by the guaranty agency for use by borrowers

seeking assistance in avoiding default.

(B) Reserve funds

The term ''reserve funds'' when used with respect to a

guaranty agency -

(i) includes any reserve funds in cash or liquid assets

held by the guaranty agency, or held by, or under the control

of, any other entity; and

(ii) does not include buildings, equipment, or other

nonliquid assets.

(i) Additional recall of reserves

(1) In general

Notwithstanding any other provision of law and subject to

paragraph (4), the Secretary shall recall, from reserve funds

held in the Federal Student Loan Reserve Funds established under

section 1072a of this title by guaranty agencies -

(A) $85,000,000 in fiscal year 2002;

(B) $82,500,000 in fiscal year 2006; and

(C) $82,500,000 in fiscal year 2007.

(2) Deposit

Funds recalled by the Secretary under this subsection shall be

deposited in the Treasury.

(3) Required share

The Secretary shall require each guaranty agency to return

reserve funds under paragraph (1) on the basis of the agency's

required share. For purposes of this paragraph, a guaranty

agency's required share shall be determined as follows:

(A) Equal percentage

The Secretary shall require each guaranty agency to return an

amount representing an equal percentage reduction in the amount

of reserve funds held by the agency on September 30, 1996.

(B) Calculation

The equal percentage reduction shall be the percentage

obtained by dividing -

(i) $250,000,000, by

(ii) the total amount of all guaranty agencies' reserve

funds held on September 30, 1996, less any amounts subject to

recall under subsection (h) of this section.

(C) Special rule

Notwithstanding subparagraphs (A) and (B), the percentage

reduction under subparagraph (B) shall not result in the

depletion of the reserve funds of any agency which charges the

1.0 percent insurance premium pursuant to section 1078(b)(1)(H)

of this title below an amount equal to the amount of lender

claim payments paid during the 90 days prior to the date of the

return under this subsection. If any additional amount is

required to be returned after deducting the total of the

required shares under subparagraph (B) and as a result of the

preceding sentence, such additional amount shall be obtained by

imposing on each guaranty agency to which the preceding

sentence does not apply, an equal percentage reduction in the

amount of the agency's remaining reserve funds.

(4) Offset of required shares

If any guaranty agency returns to the Secretary any reserve

funds in excess of the amount required under this subsection or

subsection (h) of this section, the total amount required to be

returned under paragraph (1) shall be reduced by the amount of

such excess reserve funds returned.

(5) Definition of reserve funds

The term ''reserve funds'' when used with respect to a guaranty

agency -

(A) includes any reserve funds in cash or liquid assets held

by the guaranty agency, or held by, or under the control of,

any other entity; and

(B) does not include buildings, equipment, or other nonliquid

assets.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 422, as added Pub. L. 99-498, title

IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1354; amended Pub. L.

100-203, title III, Sec. 3001(a), 3002(a), Dec. 22, 1987, 101 Stat.

1330-36, 1330-38; Pub. L. 102-325, title IV, Sec. 412, 416(p)(8),

July 23, 1992, 106 Stat. 511, 527; Pub. L. 103-66, title IV, Sec.

4041(a), (2)(A), 4042, Aug. 10, 1993, 107 Stat. 354, 357; Pub. L.

103-208, Sec. 2(c)(1), Dec. 20, 1993, 107 Stat. 2460; Pub. L.

105-33, title VI, Sec. 6101(a), Aug. 5, 1997, 111 Stat. 648; Pub.

L. 105-244, title IV, Sec. 412, Oct. 7, 1998, 112 Stat. 1673.)

-COD-

CODIFICATION

Amendment by 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. 103-66, to reflect the probable intent of

Congress.

-MISC3-

PRIOR PROVISIONS

A prior section 1072, Pub. L. 89-329, title IV, Sec. 422, Nov. 8,

1965, 79 Stat. 1236; Pub. L. 89-752, Sec. 11, Nov. 3, 1966, 80

Stat. 1243; Pub. L. 90-575, title I, Sec. 114(b), (c), Oct. 16,

1968, 82 Stat. 1021, 1022; Pub. L. 94-482, title I, Sec. 127(a),

Oct. 12, 1976, 90 Stat. 2100; Pub. L. 95-43, Sec. 1(a)(11)-(13),

June 15, 1977, 91 Stat. 213, 214; Pub. L. 95-561, title XIII, Sec.

1322(a), Nov. 1, 1978, 92 Stat. 2363; Pub. L. 96-374, title XIII,

Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1503; Pub. L. 99-272, title

XVI, Sec. 16011, Apr. 7, 1986, 100 Stat. 339, authorized advances

to establish or strengthen reserve funds of State and nonprofit

private loan insurance programs, prior to the general revision of

this part by Pub. L. 99-498.

AMENDMENTS

1998 - Subsec. (a)(2). Pub. L. 105-244, Sec. 412(1), substituted

''section 1078(c)(9)(E)'' for ''section 1078(c)(10)(E)'' in

concluding provisions.

Subsec. (c)(6)(B)(i). Pub. L. 105-244, Sec. 412(2)(A),

substituted ''written, electronic,'' for ''written''.

Subsec. (c)(7)(A). Pub. L. 105-244, Sec. 412(2)(B), struck out

''during the transition from the Federal Family Education Loan

Program under this part to the Federal Direct Student Loan Program

under part C of this subchapter'' after ''lender-of-last-resort''.

Subsec. (c)(7)(B). Pub. L. 105-244, Sec. 412(2)(C), substituted

''section 1078(c)(9)(F)(v)'' for ''section 1078(c)(10)(F)(v)''.

Subsec. (g)(1). Pub. L. 105-244, Sec. 412(3), struck out ''or the

program authorized by part C of this subchapter'' after ''program

authorized by this part'' in first and second sentences.

Subsec. (i). Pub. L. 105-244, Sec. 412(4), added subsec. (i).

1997 - Subsec. (h). Pub. L. 105-33 added subsec. (h).

1993 - Subsec. (c)(7). Pub. L. 103-66, Sec. 4041(a)(2)(A),

substituted ''to a guaranty agency - '' and subpars. (A) and (B)

for ''to a guaranty agency in accordance with section

1078(c)(10)(F)(v) of this title in order to assist the agency in

meeting its immediate cash needs and ensure the uninterrupted

payment of default claims by lenders.''

Subsec. (c)(7)(B). Pub. L. 103-208 substituted a period for

semicolon at end. See Codification note above.

Subsec. (g). Pub. L. 103-66, Sec. 4042, added subsec. (g).

1992 - Subsec. (a)(2). Pub. L. 102-325, Sec. 412(1), inserted at

end ''Except as provided in section 1078(c)(10)(E) or (F) of this

title, such unencumbered non-Federal portion shall not be subject

to recall, repayment, or recovery by the Secretary.''

Subsec. (c)(5), (7). Pub. L. 102-325, Sec. 416(p)(8), substituted

''Except as provided in paragraph (7), advances'' for ''Advances''

in par. (5) and added par. (7).

Subsecs. (e), (f). Pub. L. 102-325, Sec. 412(2), added subsecs.

(e) and (f).

1987 - Subsec. (e). Pub. L. 100-203, Sec. 3002(a), struck out

subsec. (e) which related to reduction of excess cash reserves.

Pub. L. 100-203, Sec. 3001(a), added subsec. (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.

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

Section 3002(a) of Pub. L. 100-203 provided that the amendment

made by that section 3002(a) is effective Sept. 30, 1989.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1071, 1072a, 1072b, 1073,

1078, 1078-1, 1081 of this title.

-CITE-

20 USC Sec. 1072a 01/06/03

-EXPCITE-

TITLE 20 - EDUCATION

CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

SUBCHAPTER IV - STUDENT ASSISTANCE

Part B - Federal Family Education Loan Program

-HEAD-

Sec. 1072a. Federal Student Loan Reserve Fund

-STATUTE-

(a) Establishment

Each guaranty agency shall, not later than 60 days after October

7, 1998, deposit all funds, securities, and other liquid assets

contained in the reserve fund established pursuant to section 1072

of this title into a Federal Student Loan Reserve Fund (in this

section and section 1072b of this title referred to as the

''Federal Fund''), which shall be an account of a type selected by

the agency, with the approval of the Secretary.

(b) Investment of funds

Funds transferred to the Federal Fund shall be invested in

obligations issued or guaranteed by the United States or a State,

or in other similarly low-risk securities selected by the guaranty

agency, with the approval of the Secretary. Earnings from the

Federal Fund shall be the sole property of the Federal Government.

(c) Additional deposits

After the establishment of the Federal Fund, a guaranty agency

shall deposit into the Federal Fund -

(1) all amounts received from the Secretary as payment of

reinsurance on loans pursuant to section 1078(c)(1) of this

title;

(2) from amounts collected on behalf of the obligation of a

defaulted borrower, a percentage amount equal to the complement

of the reinsurance percentage in effect when payment under the

guaranty agreement was made -

(A) with respect to the defaulted loan pursuant to sections

1078(c)(6)(A) and 1078-6(a)(1)(B) of this title; and

(B) with respect to a loan that the Secretary has repaid or

discharged under section 1087 of this title;

(3) insurance premiums collected from borrowers pursuant to

sections 1078(b)(1)(H) and 1078-8(h) of this title;

(4) all amounts received from the Secretary as payment for

supplemental preclaims activity performed prior to October 7,

1998;

(5) 70 percent of amounts received after October 7, 1998, from

the Secretary as payment for administrative cost allowances for

loans upon which insurance was issued prior to October 7, 1998;

and

(6) other receipts as specified in regulations of the

Secretary.

(d) Uses of funds

Subject to subsection (f) of this section, the Federal Fund may

only be used by a guaranty agency -

(1) to pay lender claims pursuant to sections 1078(b)(1)(G),

1078(j), 1087, and 1087-2(q) of this title; and

(2) to pay into the Agency Operating Fund established pursuant

to section 1072b of this title (in this section and section 1072b

of this title referred to as the ''Operating Fund'') a default

aversion fee in accordance with section 1078(l) of this title.

(e) Ownership of Federal Fund

The Federal Fund, and any nonliquid asset (such as a building or

equipment) developed or purchased by the guaranty agency in whole

or in part with Federal reserve funds, regardless of who holds or

controls the Federal reserve funds or such asset, shall be

considered to be the property of the United States, prorated based

on the percentage of such asset developed or purchased with Federal

reserve funds, which property shall be used in the operation of the

program authorized by this part, as provided in subsection (d) of

this section. The Secretary may restrict or regulate the use of

such asset only to the extent necessary to reasonably protect the

Secretary's prorated share of the value of such asset. The

Secretary may direct a guaranty agency, or such agency's officers

or directors, to cease any activity involving expenditures, use, or

transfer of the Federal Fund administered by the guaranty agency

that the Secretary determines is a misapplication, misuse, or

improper expenditure of the Federal Fund or the Secretary's share

of such asset.

(f) Transition

(1) In general

In order to establish the Operating Fund, each guaranty agency

may transfer not more than 180 days' cash expenses for normal

operating expenses (not including claim payments) as a working

capital reserve as defined in Office of Management and Budget

Circular A-87 (Cost Accounting Standards) from the Federal Fund

for deposit into the Operating Fund for use in the performance of

the guaranty agency's duties under this part. Such transfers may

occur during the first 3 years following the establishment of the

Operating Fund. However, no agency may transfer in excess of 45

percent of the balance, as of September 30, 1998, of the agency's

Federal Fund to the agency's Operating Fund during such 3-year

period. In determining the amount that may be transferred, the

agency shall ensure that sufficient funds remain in the Federal

Fund to pay lender claims within the required time periods and to

meet the reserve recall requirements of this section and

subsections (h) and (i) of section 1072 of this title.

(2) Special rule

A limited number of guaranty agencies may transfer interest

earned on the Federal Fund to the Operating Fund during the first

3 years after October 7, 1998, if the guaranty agency

demonstrates to the Secretary that -

(A) the cash flow in the Operating Fund will be negative

without the transfer of such interest; and

(B) the transfer of such interest will substantially improve

the financial circumstances of the guaranty agency.

(3) Repayment provisions

Each guaranty agency shall begin repayment of sums transferred

pursuant to this subsection not later than the start of the

fourth year after the establishment of the Operating Fund, and

shall repay all amounts transferred not later than 5 years from

the date of the establishment of the Operating Fund. With respect

to amounts transferred from the Federal Fund, the guaranty agency

shall not be required to repay any interest on the funds

transferred and subsequently repaid. The guaranty agency shall

provide to the Secretary a reasonable schedule for repayment of

the sums transferred and an annual financial analysis

demonstrating the agency's ability to comply with the schedule

and repay all outstanding sums transferred.

(4) Prohibition

If a guaranty agency transfers funds from the Federal Fund in

accordance with this section, and fails to make scheduled

repayments to the Federal Fund, the agency may not receive any

other funds under this part until the Secretary determines that

the agency has made such repayments. The Secretary shall pay to

the guaranty agency any funds withheld in accordance with this

paragraph immediately upon making the determination that the

guaranty agency has made all such repayments.

(5) Waiver

The Secretary may -

(A) waive the requirements of paragraph (3), but only with

respect to repayment of interest that was transferred in

accordance with paragraph (2); and

(B) waive paragraph (4);

for a guaranty agency, if the Secretary determines that there are

extenuating circumstances (such as State constitutional

prohibitions) beyond the control of the agency that justify such

a waiver.

(6) Extension of repayment period for interest

(A) Extension permitted

The Secretary shall extend the period for repayment of

interest that was transferred in accordance with paragraph (2)

from 2 years to 5 years if the Secretary determines that -

(i) the cash flow of the Operating Fund will be negative as

a result of repayment as required by paragraph (3);

(ii) the repayment of the interest transferred will

substantially diminish the financial circumstances of the

guaranty agency; and

(iii) the guaranty agency has demonstrated -

(I) that the agency is able to repay all transferred

funds by the end of the 8th year following the date of

establishment of the Operating Fund; and

(II) that the agency will be financially sound on the

completion of repayment.

(B) Repayment of income on transferred funds

All repayments made to the Federal Fund during the 6th, 7th,

and 8th years following the establishment of the Operating Fund

of interest that was transferred shall include the sums

transferred plus any income earned from the investment of the

sums transferred after the 5th year.

(7) Investment of Federal funds

Funds transferred from the Federal Fund to the Operating Fund

for operating expenses shall be invested in obligations issued or

guaranteed by the United States or a State, or in other similarly

low-risk securities selected by the guaranty agency, with the

approval of the Secretary.

(8) Special rule

In calculating the minimum reserve level required by section

1078(c)(9)(A) of this title, the Secretary shall include all

amounts owed to the Federal Fund by the guaranty agency in the

calculation.

-SOURCE-

(Pub. L. 89-329, title IV, Sec. 422A, as added Pub. L. 105-244,

title IV, Sec. 413(a), Oct. 7, 1998, 112 Stat. 1674.)

-MISC1-

EFFECTIVE DATE

Section effective Oct. 1, 1998, except as otherwise provided in

Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an

Effective Date of 1998 Amendment note under section 1001 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1072, 1072b, 1078, 1087h

of this title.

-CITE-

20 USC Sec. 1072b 01/06/03