-CITE- 
    20 USC CHAPTER 28 - HIGHER EDUCATION RESOURCES AND
           STUDENT ASSISTANCE                              01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

-HEAD-
      CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE  

-MISC1-
                     SUBCHAPTER I - GENERAL PROVISIONS                 

                           PART A - DEFINITIONS                       
    Sec.                                                     
    1001.       General definition of institution of higher education.
    1002.       Definition of institution of higher education for
                 purposes of student assistance programs.             
    1003.       Additional definitions.                               

                  PART B - ADDITIONAL GENERAL PROVISIONS              
    1011.       Antidiscrimination.                                   
    1011a.      Protection of student speech and association rights.  
    1011b.      Treatment of territories and territorial student
                 assistance.                                          
    1011c.      National Advisory Committee on Institutional Quality
                 and Integrity.                                       
    1011d.      Student representation.                               
    1011e.      Financial responsibility of foreign students.         
    1011f.      Disclosures of foreign gifts.                         
    1011g.      Application of peer review process.                   
    1011h.      Binge drinking on college campuses.                   
    1011i.      Drug and alcohol abuse prevention.                    
    1011j.      Prior rights and obligations.                         
    1011k.      Recovery of payments.                                 

                     PART C - COST OF HIGHER EDUCATION                 
    1015.       Improvements in market information and public
                 accountability in higher education.                  

        PART D - ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT
                           FINANCIAL ASSISTANCE
    1018.       Performance-based organization for delivery of Federal
                 student financial assistance.                        
    1018a.      Procurement flexibility.                              
    1018b.      Administrative simplification of student aid delivery.

                SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT            

        PART A - TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND
                               PARTNERSHIPS
    1021.       Purposes; definitions.                                
    1022.       State grants.                                         
    1023.       Partnership grants.                                   
    1024.       Teacher recruitment grants.                           
    1025.       Administrative provisions.                            
    1026.       Accountability and evaluation.                        
    1027.       Accountability for programs that prepare teachers.    
    1028.       State functions.                                      
    1029.       General provisions.                                   
    1030.       Authorization of appropriations.                      

         PART B - PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY     
    1041.       Purpose and program authority.                        
    1042.       Eligibility.                                          
    1043.       Use of funds.                                         
    1044.       Authorization of appropriations.                      

                    SUBCHAPTER III - INSTITUTIONAL AID                
    1051.       Findings and purpose.                                 

                    PART A - STRENGTHENING INSTITUTIONS                
    1057.       Program purpose.                                      
    1058.       Definitions; eligibility.                             
    1059.       Duration of grant.                                    
    1059a.      Applications.                                         
    1059b.      Goals for financial management and academic program.  
    1059c.      American Indian tribally controlled colleges and
                 universities.                                        
    1059d.      Alaska Native and Native Hawaiian-serving
                 institutions.                                        

    PART B - STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES
    1060.       Findings and purposes.                                
    1061.       Definitions.                                          
    1062.       Grants to institutions.                               
    1063.       Allotments to institutions.                           
    1063a.      Applications.                                         
    1063b.      Professional or graduate institutions.                
    1063c.      Reporting and audit requirements.                     

     PART C - ENDOWMENT CHALLENGE GRANTS FOR INSTITUTIONS ELIGIBLE FOR
                     ASSISTANCE UNDER PART A OR PART B
    1064.       Repealed.                                             
    1065.       Endowment challenge grants.                           

        PART D - HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL
                                 FINANCING
    1066.       Findings.                                             
    1066a.      Definitions.                                          
    1066b.      Federal insurance for bonds.                          
    1066c.      Limitations on Federal insurance for bonds issued by
                 designated bonding authority.                        
    1066d.      Authority of Secretary.                               
    1066e.      Repealed.                                             
    1066f.      HBCU Capital Financing Advisory Board.                
    1066g.      Minority business enterprise utilization.             

       PART E - MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM   

     SUBPART 1 - MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM 
    1067.       Findings.                                             
    1067a.      Purpose; authority.                                   
    1067b.      Grant recipient selection.                            
    1067c.      Use of funds.                                         
    1067d.      Omitted.                                              

             SUBPART 2 - ADMINISTRATIVE AND GENERAL PROVISIONS         
    1067g.      Eligibility for grants.                               
    1067h.      Grant application.                                    
    1067i.      Cross program and cross agency cooperation.           
    1067j.      Administrative provisions.                            
    1067k.      Definitions.                                          
    1067l.      Repealed.                                             

                        PART F - GENERAL PROVISIONS                    
    1068.       Applications for assistance.                          
    1068a.      Waiver authority and reporting requirement.           
    1068b.      Application review process.                           
    1068c.      Cooperative arrangements.                             
    1068d.      Assistance to institutions under other programs.      
    1068e.      Limitations.                                          
    1068f.      Penalties.                                            
    1068g.      Continuation awards.                                  
    1068h.      Authorization of appropriations.                      

                    SUBCHAPTER IV - STUDENT ASSISTANCE                

    PART A - GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER
                                 EDUCATION
    1070.       Statement of purpose; program authorization.          

                      SUBPART 1 - FEDERAL PELL GRANTS                  
    1070a.      Federal Pell Grants: amount and determinations;
                 applications.                                        
    1070a-1.    Academic competitiveness grants.                      
    1070a-2 to 1070a-6. Repealed.                                     

     SUBPART 2 - FEDERAL EARLY OUTREACH AND STUDENT SERVICES PROGRAMS 

                    DIVISION 1 - FEDERAL TRIO PROGRAMS                
    1070a-11.   Program authority; authorization of appropriations.   
    1070a-12.   Talent search.                                        
    1070a-13.   Upward bound.                                         
    1070a-14.   Student support services.                             
    1070a-15.   Postbaccalaureate achievement program authority.      
    1070a-16.   Educational opportunity centers.                      
    1070a-17.   Staff development activities.                         
    1070a-18.   Evaluations and grants for project improvement and
                 dissemination partnership projects.                  

          DIVISION 2 - GAINING EARLY AWARENESS AND READINESS FOR
                          UNDERGRADUATE PROGRAMS
    1070a-21.   Early intervention and college awareness program
                 authorized.                                          
    1070a-22.   Requirements.                                         
    1070a-23.   Eligible entity plans.                                
    1070a-24.   Early intervention.                                   
    1070a-25.   Scholarship component.                                
    1070a-26.   21st Century Scholar Certificates.                    
    1070a-27.   Evaluation and report.                                
    1070a-28.   Authorization of appropriations.                      

         DIVISION 3 - ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS     
    1070a-31.   Scholarships authorized.                              
    1070a-32.   Scholarship program requirements.                     
    1070a-33.   Eligibility of scholars.                              
    1070a-34.   Student requirements.                                 
    1070a-35.   Authorization of appropriations.                      

      DIVISION 4 - MODEL PROGRAM COMMUNITY PARTNERSHIP AND COUNSELING
                                  GRANTS
    1070a-41 to 1070a-43. Repealed.                                   

                      DIVISION 5 - PUBLIC INFORMATION                  
    1070a-51 to 1070a-53. Repealed.                                   

        DIVISION 6 - NATIONAL STUDENT SAVINGS DEMONSTRATION PROGRAM    
    1070a-61.   Repealed.                                             

                     DIVISION 7 - PREELIGIBILITY FORM                 
    1070a-71.   Repealed.                                             

       DIVISION 8 - TECHNICAL ASSISTANCE FOR TEACHERS AND COUNSELORS   
    1070a-81.   Repealed.                                             

      SUBPART 3 - FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS  
    1070b.      Purpose; appropriations authorized.                   
    1070b-1.    Amount and duration of grants.                        
    1070b-2.    Agreements with institutions; selection of recipients.
    1070b-3.    Allocation of funds.                                  
    1070b-4.    Carryover and carryback authority.                    

     SUBPART 4 - LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM 
    1070c.      Purpose; appropriations authorized.                   
    1070c-1.    Allotment among States.                               
    1070c-2.    Applications for leveraging educational assistance
                 partnership programs.                                
    1070c-3.    Administration of State programs; judicial review.    
    1070c-3a.   Special leveraging educational assistance partnership
                 program.                                             
    1070c-4.    "Community service" defined.                          
    1070d to 1070d-1d. Repealed.                                      

       SUBPART 5 - SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE
                 ENGAGED IN MIGRANT AND SEASONAL FARMWORK
    1070d-2.    Maintenance and expansion of existing programs.       

           SUBPART 6 - ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM       
    1070d-31.   Statement of purpose.                                 
    1070d-32.   Repealed.                                             
    1070d-33.   Scholarships authorized.                              
    1070d-34.   Allocation among States.                              
    1070d-35.   Agreements.                                           
    1070d-36.   Eligibility of scholars.                              
    1070d-37.   Selection of scholars.                                
    1070d-38.   Stipends and scholarship conditions.                  
    1070d-39.   Repealed.                                             
    1070d-40.   Construction of needs provisions.                     
    1070d-41.   Authorization of appropriations.                      

           SUBPART 7 - CHILD CARE ACCESS MEANS PARENTS IN SCHOOL       
    1070e.      Child care access means parents in school.            

            SUBPART 8 - LEARNING ANYTIME ANYWHERE PARTNERSHIPS        
    1070f.      Findings.                                             
    1070f-1.    Purpose; program authorized.                          
    1070f-2.    Application.                                          
    1070f-3.    Authorized activities.                                
    1070f-4.    Matching requirement.                                 
    1070f-5.    Peer review.                                          
    1070f-6.    Authorization of appropriations.                      

              PART B - FEDERAL FAMILY EDUCATION LOAN PROGRAM          
    1071.       Statement of purpose; nondiscrimination; and
                 appropriations authorized.                           
    1072.       Advances for reserve funds of State and nonprofit
                 private loan insurance programs.                     
    1072a.      Federal Student Loan Reserve Fund.                    
    1072b.      Agency Operating Fund.                                
    1073.       Effects of adequate non-Federal programs.             
    1074.       Scope and duration of Federal loan insurance program. 
    1075.       Limitations on individual federally insured loans and
                 on Federal loan insurance.                           
    1076.       Sources of funds.                                     
    1077.       Eligibility of student borrowers and terms of
                 federally insured student loans.                     
    1077a.      Applicable interest rates.                            
    1078.       Federal payments to reduce student interest costs.    
    1078-1.     Voluntary flexible agreements with guaranty agencies. 
    1078-2.     Federal PLUS loans.                                   
    1078-3.     Federal consolidation loans.                          
    1078-4.     Commingling of funds.                                 
    1078-5.     Repealed.                                             
    1078-6.     Default reduction program.                            
    1078-7.     Requirements for disbursement of student loans.       
    1078-8.     Unsubsidized Stafford loans for middle-income
                 borrowers.                                           
    1078-9.     Special insurance and reinsurance rules.              
    1078-10.    Loan forgiveness for teachers.                        
    1078-11.    Loan forgiveness for child care providers.            
    1079.       Certificate of Federal loan insurance - effective date
                 of insurance.                                        
    1080.       Default of student under Federal loan insurance
                 program.                                             
    1080a.      Reports to credit bureaus and institutions of higher
                 education.                                           
    1081.       Insurance fund.                                       
    1082.       Legal powers and responsibilities.                    
    1083.       Student loan information by eligible lenders.         
    1084.       Participation by Federal credit unions in Federal,
                 State, and private student loan insurance programs.  
    1085.       Definitions for student loan insurance program.       
    1086.       Delegation of functions.                              
    1087.       Repayment by Secretary of loans of bankrupt, deceased,
                 or disabled borrowers; treatment of borrowers
                 attending schools that fail to provide a refund,
                 attending closed schools, or falsely certified as
                 eligible to borrow.                                  
    1087-0.     Repealed.                                             
    1087-1.     Special allowances.                                   
    1087-2.     Student Loan Marketing Association.                   
    1087-3.     Reorganization of Student Loan Marketing Association
                 through formation of Holding Company.                
    1087-4.     Discrimination in secondary markets prohibited.       

           PART C - WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM       
    1087a.      Program authority.                                    
    1087b.      Funds for origination of direct student loans.        
    1087c.      Selection of institutions for participation and
                 origination.                                         
    1087d.      Agreements with institutions.                         
    1087e.      Terms and conditions of loans.                        
    1087f.      Contracts.                                            
    1087g.      Regulatory activities.                                
    1087h.      Funds for administrative expenses.                    
    1087i.      Authority to sell loans.                              
    1087j.      Loan cancellation for teachers.                       

                      PART D - FEDERAL PERKINS LOANS                  
    1087aa.     Appropriations authorized.                            
    1087bb.     Allocation of funds.                                  
    1087cc.     Agreements with institutions of higher education.     
    1087cc-1.   Student loan information by eligible institutions.    
    1087dd.     Terms of loans.                                       
    1087ee.     Cancellation of loans for certain public service.     
    1087ff.     Distribution of assets from student loan funds.       
    1087gg.     Collection of defaulted loans: Perkins Loan Revolving
                 Fund.                                                
    1087hh.     General authority of Secretary.                       
    1087ii.     Definitions.                                          

                          PART E - NEED ANALYSIS                      
    1087kk.     Amount of need.                                       
    1087ll.     Cost of attendance.                                   
    1087mm.     Family contribution.                                  
    1087nn.     Determination of expected family contribution; data
                 elements.                                            
    1087oo.     Family contribution for dependent students.           
    1087pp.     Family contribution for independent students without
                 dependents other than a spouse.                      
    1087qq.     Family contribution for independent students with
                 dependents other than a spouse.                      
    1087rr.     Regulations; updated tables.                          
    1087ss.     Simplified needs test.                                
    1087tt.     Discretion of student financial aid administrators.   
    1087uu.     Disregard of student aid in other Federal programs.   
    1087uu-1.   Native American students.                             
    1087vv.     Definitions.                                          

    PART F - GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE PROGRAMS
    1088.       Definitions.                                          
    1088a.      Clock and credit hour treatment of diploma nursing
                 schools.                                             
    1089.       Master calendar.                                      
    1090.       Forms and regulations.                                
    1091.       Student eligibility.                                  
    1091a.      Statute of limitations, and State court judgments.    
    1091b.      Institutional refunds.                                
    1092.       Institutional and financial assistance information for
                 students.                                            
    1092a.      Combined payment plan.                                
    1092b.      National Student Loan Data System.                    
    1092c.      Simplification of lending process for borrowers.      
    1092d.      Scholarship fraud assessment and awareness activities.
    1092e.      College access initiative.                            
    1093.       Distance education demonstration programs.            
    1094.       Program participation agreements.                     
    1094a.      Regulatory relief and improvement.                    
    1094b.      Assignment of identification numbers.                 
    1095.       Transfer of allotments.                               
    1095a.      Wage garnishment requirement.                         
    1096.       Administrative expenses.                              
    1096a.      Repealed.                                             
    1097.       Criminal penalties.                                   
    1097a.      Administrative subpoenas.                             
    1098.       Advisory Committee on Student Financial Assistance.   
    1098a.      Regional meetings and negotiated rulemaking.          
    1098b.      Authorization of appropriations for administrative
                 expenses.                                            
    1098c.      Year 2000 requirements at the Department.             
    1098d.      Procedures for cancellations and deferments for
                 eligible disabled veterans.                          
    1099.       Exemption from State disclosure requirements.         

                        PART G - PROGRAM INTEGRITY                    

                          SUBPART 1 - STATE ROLE                      
    1099a.      State responsibilities.                               

                SUBPART 2 - ACCREDITING AGENCY RECOGNITION            
    1099b.      Recognition of accrediting agency or association.     

           SUBPART 3 - ELIGIBILITY AND CERTIFICATION PROCEDURES       
    1099c.      Eligibility and certification procedures.             
    1099c-1.    Program review and data.                              
    1099c-2.    Review of regulations.                                

                  SUBCHAPTER V - DEVELOPING INSTITUTIONS              

                  PART A - HISPANIC-SERVING INSTITUTIONS              
    1101.       Findings; purpose; and program authority.             
    1101a.      Definitions; eligibility.                             
    1101b.      Authorized activities.                                
    1101c.      Duration of grant.                                    
    1101d.      Special rule.                                         

                        PART B - GENERAL PROVISIONS                    
    1103.       Eligibility; applications.                            
    1103a.      Waiver authority and reporting requirement.           
    1103b.      Application review process.                           
    1103c.      Cooperative arrangements.                             
    1103d.      Assistance to institutions under other programs.      
    1103e.      Limitations.                                          
    1103f.      Penalties.                                            
    1103g.      Authorizations of appropriations.                     

             SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS         

            PART A - INTERNATIONAL AND FOREIGN LANGUAGE STUDIES        
    1121.       Findings and purposes.                                
    1122.       Graduate and undergraduate language and area centers
                 and programs.                                        
    1123.       Language resource centers.                            
    1124.       Undergraduate international studies and foreign
                 language programs.                                   
    1125.       Research; studies; annual report.                     
    1126.       Technological innovation and cooperation for foreign
                 information access.                                  
    1127.       Selection of certain grant recipients.                
    1128.       Equitable distribution of certain funds.              
    1128a.      American overseas research centers.                   
    1128b.      Authorization of appropriations.                      

          PART B - BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS      
    1130.       Findings and purposes.                                
    1130-1.     Centers for international business education.         
    1130a.      Education and training programs.                      
    1130b.      Authorization of appropriations.                      

            PART C - INSTITUTE FOR INTERNATIONAL PUBLIC POLICY        
    1131.       Minority foreign service professional development
                 program.                                             
    1131-1.     Institutional development.                            
    1131a.      Study abroad program.                                 
    1131b.      Masters degree in international relations.            
    1131c.      Internships.                                          
    1131d.      Report.                                               
    1131e.      Gifts and donations.                                  
    1131f.      Authorization of appropriations.                      

                        PART D - GENERAL PROVISIONS                    
    1132.       Definitions.                                          
    1132-1.     Repealed.                                             

     SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS 
    1133.       Purpose.                                              

                   PART A - GRADUATE EDUCATION PROGRAMS               

              SUBPART 1 - JACOB K. JAVITS FELLOWSHIP PROGRAM          
    1134.       Award of Jacob K. Javits fellowships.                 
    1134a.      Allocation of fellowships.                            
    1134b.      Stipends.                                             
    1134c.      Fellowship conditions.                                
    1134d.      Authorization of appropriations.                      

         SUBPART 2 - GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED     
    1135.       Grants to academic departments and programs of
                 institutions.                                        
    1135a.      Institutional eligibility.                            
    1135b.      Criteria for applications.                            
    1135c.      Awards to graduate students.                          
    1135d.      Additional assistance for cost of education.          
    1135e.      Authorization of appropriations.                      

    SUBPART 3 - THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM
    1136.       Legal educational opportunity program.                

                      SUBPART 4 - GENERAL PROVISIONS                  
    1137.       Administrative provisions for subparts 1, 2, and 3.   

       PART B - FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION   
    1138.       Fund for the Improvement of Postsecondary Education.  
    1138a.      National Board of the Fund for the Improvement of
                 Postsecondary Education.                             
    1138b.      Administrative provisions.                            
    1138c.      Special projects.                                     
    1138d.      Authorization of appropriations.                      

                     PART C - URBAN COMMUNITY SERVICE                 
    1139.       Findings.                                             
    1139a.      Purpose; program authorized.                          
    1139b.      Application for urban community service grants.       
    1139c.      Allowable activities.                                 
    1139d.      Peer review.                                          
    1139e.      Disbursement of funds.                                
    1139f.      Designation of Urban Grant Institutions.              
    1139g.      Definitions.                                          
    1139h.      Authorization of appropriations.                      

          PART D - DEMONSTRATION PROJECTS TO ENSURE STUDENTS WITH
              DISABILITIES RECEIVE A QUALITY HIGHER EDUCATION
    1140.       Purposes.                                             
    1140a.      Grants authorized.                                    
    1140b.      Applications.                                         
    1140c.      Rule of construction.                                 
    1140d.      Authorization of appropriations.                      

                      SUBCHAPTER VIII - MISCELLANEOUS                  
    1151.       Grants to States for workplace and community
                 transition training for incarcerated youth offenders.
    1152.       Repealed.                                             
    1153.       Underground Railroad educational and cultural program.
    1154.       Contract authority.                                   
    1155.       Connie Lee privatization.                             

-End-


-CITE-
    20 USC SUBCHAPTER I - GENERAL PROVISIONS                    01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-
                     SUBCHAPTER I - GENERAL PROVISIONS                 

-COD-
                               CODIFICATION                           
      Title I of the Higher Education Act of 1965, comprising this
    subchapter, was originally enacted by Pub. L. 89-329, title I, Nov.
    8, 1965, 79 Stat. 1219, and amended by Pub. L. 90-575, Oct. 16,
    1968, 82 Stat. 1014; Pub. L. 91-230, Apr. 13, 1970, 84 Stat. 121;
    Pub. L. 92-318, June 23, 1972, 86 Stat. 235; Pub. L. 93-29, May 3,
    1973, 87 Stat. 30; Pub. L. 93-380, Aug. 21, 1974, 88 Stat. 484;
    Pub. L. 93-644, Jan. 4, 1975, 88 Stat. 2291; Pub. L. 94-135, Nov.
    28, 1975, 89 Stat. 713; Pub. L. 94-482, Oct. 12, 1976, 90 Stat.
    2081; Pub. L. 95-43, June 15, 1977, 91 Stat. 213; Pub. L. 96-49,
    Aug. 13, 1979, 93 Stat. 351; Pub. L. 96-96, Oct. 31, 1979, 93 Stat.
    729; Pub. L. 96-374, Oct. 3, 1980, 94 Stat. 1367; Pub. L. 97-300,
    Oct. 13, 1982, 96 Stat. 1322; Pub. L. 98-524, Oct. 19, 1984, 98
    Stat. 2435; Pub. L. 99-386, Aug. 22, 1986, 100 Stat. 821; Pub. L.
    99-498, Oct. 17, 1986, 100 Stat. 1268; Pub. L. 100-418, Aug. 23,
    1988, 102 Stat. 1107; Pub. L. 101-305, May 30, 1990, 104 Stat. 253;
    Pub. L. 101-610, Nov. 16, 1990, 104 Stat. 3127; Pub. L. 102-54,
    June 13, 1991, 105 Stat. 267; Pub. L. 102-325, July 23, 1992, 106
    Stat. 448; Pub. L. 103-208, Dec. 20, 1993, 107 Stat. 2457. Such
    title is shown herein, however, as having been added by Pub. L. 105-
    244, title I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1585, without
    reference to such intervening amendments because of the extensive
    revision of the title's provisions by Pub. L. 105-244.

-End-


-CITE-
    20 USC Part A - Definitions                                 01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part A - Definitions

-HEAD-
                           PART A - DEFINITIONS                       

-End-



-CITE-
    20 USC Sec. 1001                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part A - Definitions

-HEAD-
    Sec. 1001. General definition of institution of higher education

-STATUTE-
    (a) Institution of higher education
      For purposes of this chapter, other than subchapter IV, the term
    "institution of higher education" means an educational institution
    in any State that - 
        (1) admits as regular students only persons having a
      certificate of graduation from a school providing secondary
      education, or the recognized equivalent of such a certificate;
        (2) is legally authorized within such State to provide a
      program of education beyond secondary education;
        (3) provides an educational program for which the institution
      awards a bachelor's degree or provides not less than a 2-year
      program that is acceptable for full credit toward such a degree;
        (4) is a public or other nonprofit institution; and
        (5) is accredited by a nationally recognized accrediting agency
      or association, or if not so accredited, is an institution that
      has been granted preaccreditation status by such an agency or
      association that has been recognized by the Secretary for the
      granting of preaccreditation status, and the Secretary has
      determined that there is satisfactory assurance that the
      institution will meet the accreditation standards of such an
      agency or association within a reasonable time.
    (b) Additional institutions included
      For purposes of this chapter, other than subchapter IV, the term
    "institution of higher education" also includes - 
        (1) any school that provides not less than a 1-year program of
      training to prepare students for gainful employment in a
      recognized occupation and that meets the provision of paragraphs
      (1), (2), (4), and (5) of subsection (a) of this section; and
        (2) a public or nonprofit private educational institution in
      any State that, in lieu of the requirement in subsection (a)(1)
      of this section, admits as regular students persons who are
      beyond the age of compulsory school attendance in the State in
      which the institution is located.
    (c) List of accrediting agencies
      For purposes of this section and section 1002 of this title, the
    Secretary shall publish a list of nationally recognized accrediting
    agencies or associations that the Secretary determines, pursuant to
    subpart 2 of part G of subchapter IV of this chapter, to be
    reliable authority as to the quality of the education or training
    offered.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 101, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1585.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsecs. (a) and (b), 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 below and Tables.
      Subchapter IV, referred to in subsecs. (a) and (b), was in the
    original "title IV", meaning title IV of Pub. L. 89-329, as
    amended, which is classified generally to subchapter IV of this
    chapter and part C of subchapter I of chapter 34 of Title 42, The
    Public Health and Welfare. For complete classification of this Act
    to the Code, see Short Title note below and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1141(a) of this title prior to repeal by Pub. L. 105-244.
      A prior section 1001, Pub. L. 89-329, title I, Sec. 101, as added
    Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat. 459,
    related to purposes of school, college, and university partnership
    grant program, prior to the general amendment of this subchapter by
    Pub. L. 105-244.
      Another prior section 1001, Pub. L. 89-329, title I, Sec. 101, as
    added Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat.
    1278, related to Congressional findings, prior to the general
    amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1001, Pub. L. 89-329, title I, Sec. 101, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1373, stated Congressional findings with respect to continuing
    postsecondary education program and planning, prior to the general
    amendment of this subchapter by Pub. L. 99-498.
      Another prior section 1001, Pub. L. 89-329, title I, Sec. 101,
    Nov. 8, 1965, 79 Stat. 1219; Pub. L. 90-575, title II, Sec. 201,
    Oct. 16, 1968, 82 Stat. 1035; Pub. L. 92-318, title I, Sec. 101(a),
    June 23, 1972, 86 Stat. 236; Pub. L. 94-482, title I, Sec. 101(a),
    Oct. 12, 1976, 90 Stat. 2083; Pub. L. 96-49, Sec. 2, Aug. 13, 1979,
    93 Stat. 351, authorized appropriations for the community service,
    continuing education, and lifelong learning program grant programs
    through fiscal year 1980, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-244, Sec. 3, Oct. 7, 1998, 112 Stat. 1585, provided
    that: "Except as otherwise provided in this Act [see Tables for
    classification] or the amendments made by this Act, the amendments
    made by this Act shall take effect on October 1, 1998."

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Pub. L. 102-325, Sec. 2, July 23, 1992, 106 Stat. 458, provided
    that: "Except as otherwise provided in this Act (20 U.S.C. 1001 et
    seq.) [see Tables for classification], the amendments made by this
    Act shall take effect on October 1, 1992."

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Pub. L. 100-50, Sec. 27, June 3, 1987, 101 Stat. 363, provided
    that: "The amendments made by this Act [see Short Title of 1987
    Amendment note below] shall take effect as if enacted as part of
    the Higher Education Amendments of 1986 [Pub. L. 99-498, see Short
    Title of 1986 Amendments note below]."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Pub. L. 99-498, Sec. 2, Oct. 17, 1986, 100 Stat. 1277, provided
    that: "Except as otherwise provided in this Act, the amendments
    made by this Act [see Tables for classification] shall take effect
    on the date of enactment of this Act [Oct. 17, 1986]."

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Pub. L. 96-374, title XIII, Sec. 1393, Oct. 3, 1980, 94 Stat.
    1504, provided that:
      "(a) Except as provided in subsection (b), this Act and the
    amendments made by this Act [see Tables for classification] shall
    take effect on October 1, 1980.
      "(b)(1) The amendment made by section 301 of this Act to title
    III of the Act [enacting subchapter III of this chapter] shall take
    effect October 1, 1981.
      "(2) The amendment made by section 404(c)(4) of this Act to
    section 415C(b)(4) of the Act [amending section 1070c-2 of this
    title] shall be effective October 1, 1979.
      "(3) The amendment made by section 405 to subpart 4 of part A of
    title IV of the Act [amending subpart 4 of part A of subchapter IV
    of this chapter generally] shall take effect October 1, 1981.
      "(4) The amendments made by part B of title IV of this Act
    [enacting sections 1077a, 1078-2, 1083a, and 1087-1a of this title
    and amending sections 1074, 1075, 1077, 1078, 1078-1, 1080, 1082,
    1085, 1087-1, and 1087-2 of this title] shall take effect, except
    as otherwise provided therein, on January 1, 1981, and to the
    extent such amendments make changes in such part B which affect
    student loans, such changes shall apply to outstanding loans as
    well as to loans made after the amendments take effect, except that
    the amendments made by section 415(b) [amending sections
    1077(a)(2)(B) and 1078(b)(1)(E) of this title] shall apply with
    respect to any loan to cover the cost of instruction for any period
    of instruction beginning on or after January 1, 1981, to any
    student borrower who has no outstanding balance of principal or
    interest on any loan made, insured, or guaranteed under part B of
    title IV of the Higher Education Act of 1965 [part B of subchapter
    IV of this chapter] on the date on which the borrower enters into
    the note or other written evidence of the loan.
      "(5) The amendments made by part D of title IV of this Act
    [enacting sections 1087cc-1, 1087hh, and 1087ii of this title and
    amending sections 1087aa to 1087gg of this title] shall apply to
    loans made under part E of the Act [part D of subchapter IV of this
    chapter] on or after October 1, 1980.
      "(6) The amendment made by section 701 of this Act adding section
    731 of the Act [former section 1132d of this title] shall apply to
    loans made under section 731 on or after October 1, 1980."

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Pub. L. 94-482, title V, Sec. 532, Oct. 12, 1976, 90 Stat. 2241,
    provided that: "The provisions of this Act [see Tables for
    classification] and the amendments made by this Act shall take
    effect 30 days after the date of the enactment of this Act [Oct.
    12, 1976] except - 
        "(1) as specifically otherwise provided; and
        "(2) that each amendment made by this Act (not subject to
      clause (1) of this section) providing for authorization of
      appropriations shall take effect July 1, 1976."

                       SHORT TITLE OF 2006 AMENDMENT                   
      Pub. L. 109-292, Sec. 1, Sept. 30, 2006, 120 Stat. 1340, provided
    that: "This Act [amending sections 1085, 1087h, 1101a, and 1101c of
    this title, enacting provisions set out as notes under this section
    and section 1085 of this title, and amending provisions set out as
    a note under this section] may be cited as the 'Third Higher
    Education Extension Act of 2006'."
      Pub. L. 109-238, Sec. 1, June 30, 2006, 120 Stat. 507, provided
    that: "This Act [enacting and amending provisions set out as notes
    under this section] may be cited as the 'Second Higher Education
    Extension Act of 2006'."
      Pub. L. 109-212, Sec. 1, Apr. 1, 2006, 120 Stat. 321, provided
    that: "This Act [enacting and amending provisions set out as notes
    under this section] may be cited as the 'Higher Education Extension
    Act of 2006'."
      Pub. L. 109-171, title VIII, Sec. 8001(a), Feb. 8, 2006, 120
    Stat. 155, provided that: "This subtitle [subtitle A (Secs. 8001-
    8024) of title VIII of Pub. L. 109-171, enacting sections 1070a-1
    and 1092e of this title, amending sections 1002, 1071, 1074, 1075,
    1077a, 1078 to 1078-3, 1078-6 to 1078-10, 1082, 1085, 1087, 1087-1,
    1087e, 1087h, 1087j, 1087dd, 1087ll, 1087oo to 1087ss, 1087vv,
    1088, 1091, 1091b, and 1095a of this title, enacting provisions set
    out as notes under sections 1002, 1075, 1078, 1087-1, 1087oo to
    1087qq, and 1087ss of this title, and amending provisions set out
    as a note under section 1078-10 of this title] may be cited as the
    'Higher Education Reconciliation Act of 2005'."

                      SHORT TITLE OF 2005 AMENDMENTS                  
      Pub. L. 109-150, Sec. 1, Dec. 30, 2005, 119 Stat. 2884, provided
    that: "This Act [amending section 1087-1 of this title, enacting
    provisions set out as a note under section 1087-1 of this title,
    and amending provisions set out as notes under this section and
    section 1078-10 of this title] may be cited as the 'Second Higher
    Education Extension Act of 2005'."
      Pub. L. 109-67, Sec. 1, Sept. 21, 2005, 119 Stat. 2001, provided
    that: "This Act [amending section 1091b of this title] may be cited
    as the 'Student Grant Hurricane and Disaster Relief Act'."
      Pub. L. 109-66, Sec. 1, Sept. 21, 2005, 119 Stat. 1999, provided
    that: "This Act [amending section 1091b of this title] may be cited
    as the 'Pell Grant Hurricane and Disaster Relief Act'."

                       SHORT TITLE OF 2004 AMENDMENT                   
      Pub. L. 108-409, Sec. 1, Oct. 30, 2004, 118 Stat. 2299, provided
    that: "This Act [amending sections 1078-10, 1087-1, and 1087j of
    this title and enacting provisions set out as notes under section
    1078-10 of this title] may be cited as the 'Taxpayer-Teacher
    Protection Act of 2004'."

                      SHORT TITLE OF 2000 AMENDMENTS                  
      Pub. L. 106-420, Sec. 1, Nov. 1, 2000, 114 Stat. 1867, provided
    that: "This Act [enacting section 1092d of this title, amending
    section 522 of Title 11, Bankruptcy, and enacting provisions set
    out as notes under section 1092d of this title and section 994 of
    Title 28, Judiciary and Judicial Procedure] may be cited as the
    'College Scholarship Fraud Prevention Act of 2000'."
      Pub. L. 106-386, div. B, title VI, Sec. 1601(a), Oct. 28, 2000,
    114 Stat. 1537, provided that: "This section [amending sections
    1092 and 1232g of this title and section 14071 of Title 42, The
    Public Health and Welfare, and enacting provisions set out as notes
    under section 1092 of this title and section 14071 of Title 42] may
    be cited as the 'Campus Sex Crimes Prevention Act'."

                       SHORT TITLE OF 1998 AMENDMENT                   
      Pub. L. 105-244, Sec. 1(a), Oct. 7, 1998, 112 Stat. 1581,
    provided that: "This Act [see Tables for classification] may be
    cited as the 'Higher Education Amendments of 1998'."

                       SHORT TITLE OF 1997 AMENDMENT                   
      Pub. L. 105-78, title VI, Sec. 609(a), Nov. 13, 1997, 111 Stat.
    1522, provided in part that: "This section [amending sections 1078-
    3, 1087h, 1087oo to 1087qq, and 1087vv of this title and enacting
    provisions set out as notes under sections 1078-3 and 1087h of this
    title] may be cited as the 'Emergency Student Loan Consolidation
    Act of 1997'."

                       SHORT TITLE OF 1996 AMENDMENT                   
      Pub. L. 104-208, div. A, title I, Sec. 101(e) [title VI, Sec.
    601], Sept. 30, 1996, 110 Stat. 3009-233, 3009-275, provided that:
    "This title [enacting sections 1087-3, 1087-4, and 1132f-10 of this
    title, amending sections 1078-3, 1085, and 1087-2 of this title,
    repealing sections 1087-2, 1087-3, and 1132f to 1132f-9 of this
    title, and enacting provisions set out as notes under sections 1078-
    3 and 1087-2 of this title] may be cited as the 'Student Loan
    Marketing Association Reorganization Act of 1996'."

                       SHORT TITLE OF 1994 AMENDMENT                   
      Pub. L. 103-382, title III, Sec. 360B(a), Oct. 20, 1994, 108
    Stat. 3969, provided that: "This section [amending section 1092 of
    this title and enacting provisions set out as a note under section
    1092 of this title] may be cited as the 'Equity in Athletics
    Disclosure Act'."

                      SHORT TITLE OF 1993 AMENDMENTS                  
      Pub. L. 103-208, Sec. 1(a), Dec. 20, 1993, 107 Stat. 2457,
    provided that: "This Act [see Tables for classification] may be
    cited as the 'Higher Education Technical Amendments of 1993'."
      Pub. L. 103-66, title IV, Sec. 4011(a), Aug. 10, 1993, 107 Stat.
    341, provided that: "This subtitle [subtitle A (Secs. 4011-4047) of
    title IV of Pub. L. 103-66, amending sections 1072, 1078, 1078-3,
    1078-8, 1085, 1087-2, and 1087a to 1087h of this title, repealing
    section 1078-1 of this title, omitting sections 1087i and 1087j of
    this title, and enacting provisions set out as notes under sections
    1078, 1078-3, and 1078-8 of this title] may be cited as the
    'Student Loan Reform Act of 1993'."

                       SHORT TITLE OF 1992 AMENDMENT                   
      Pub. L. 102-325, Sec. 1(a), July 23, 1992, 106 Stat. 448,
    provided that: "This Act [see Tables for classification] may be
    cited as the 'Higher Education Amendments of 1992'."

                       SHORT TITLE OF 1991 AMENDMENT                   
      Pub. L. 102-26, Sec. 1(a), Apr. 9, 1991, 105 Stat. 123, provided
    that: "This Act [enacting section 1211b of this title, amending
    sections 1078, 1078-1, 1085, 1087ss, 1088, 1091, 1091a, 1092, 1094,
    and 1141 of this title, enacting provisions set out as notes under
    sections 1070, 1078-1, 1088, and 1091a of this title, amending
    provisions set out as a note under section 1092 of this title, and
    repealing provisions set out as a note under section 1088 of this
    title] may be cited as the 'Higher Education Technical Amendments
    of 1991'."

                      SHORT TITLE OF 1990 AMENDMENTS                  
      Pub. L. 101-542, Sec. 1, Nov. 8, 1990, 104 Stat. 2381, provided
    that: "This Act [amending sections 1085, 1092, 1094, and 1232g of
    this title and enacting provisions set out as notes under this
    section and section 1092 of this title] may be cited as the
    'Student Right-To-Know and Campus Security Act'."
      Pub. L. 101-542, title I, Sec. 101, Nov. 8, 1990, 104 Stat. 2381,
    provided that: "This title [amending section 1092 of this title and
    enacting provisions set out as notes under section 1092 of this
    title] may be cited as the 'Student Right-To-Know Act'."
      Pub. L. 101-542, title II, Sec. 201, Nov. 8, 1990, 104 Stat.
    2384, provided that: "This title [amending sections 1092, 1094, and
    1232g of this title and enacting provisions set out as notes under
    section 1092 of this title] may be cited as the 'Crime Awareness
    and Campus Security Act of 1990'."
      Pub. L. 101-508, title III, Sec. 3001, Nov. 5, 1990, 104 Stat.
    1388-25, provided that: "This subtitle [subtitle A (Secs. 3001-
    3008) of title III of Pub. L. 101-508, amending sections 1078,
    1078-1, 1078-7, 1085, 1088, and 1091 of this title and sections
    362, 541, and 1328 of Title 11, Bankruptcy, enacting provisions set
    out as notes under sections 1078-7, 1085, and 1088 of this title
    and sections 362 and 1328 of Title 11, and amending provisions set
    out as a note under section 1078-1 of this title] may be cited as
    the 'Student Loan Default Prevention Initiative Act of 1990'."

                       SHORT TITLE OF 1989 AMENDMENT                   
      Pub. L. 101-239, title II, Sec. 2001, Dec. 19, 1989, 103 Stat.
    2111, provided that: "This subtitle [subtitle A (Secs. 2001-2009)
    of title II of Pub. L. 101-239, enacting section 1078-7 of this
    title, amending sections 1077, 1078, 1078-1, 1078-6, 1082, 1085,
    1087dd, 1087tt, 1088, 1092b, and 1094 of this title, and enacting
    provisions set out as notes under sections 1077, 1078, 1078-1, and
    1078-6 of this title] may be cited as the 'Student Loan
    Reconciliation Amendments of 1989'."

                       SHORT TITLE OF 1987 AMENDMENT                   
      Pub. L. 100-50, Sec. 1(a), June 3, 1987, 101 Stat. 335, provided
    that: "This Act [enacting sections 1059a, 1087tt, 1087uu, 1087uu-1,
    and 1145d-1 of this title, amending sections 1057, 1058, 1062,
    1063a to 1063c, 1065, 1066, 1067, 1069a, 1070a to 1070a-4, 1070a-6,
    1070b-3, 1070c-4, 1070d-1b, 1070d-2, 1070e-1, 1070f, 1075, 1077,
    1077a, 1078 to 1078-3, 1078-5, 1078-6, 1080a, 1081 to 1083, 1085,
    1087-1, 1087-2, 1087d, 1087bb, 1087cc, 1087cc-1, 1087dd, 1087ee,
    1087oo to 1087ss, 1087vv, 1088, 1089 to 1091, 1092 to 1092b, 1095,
    1096, 1098, 1109 to 1109d, 1111, 1111b, 1111f, 1111g, 1122, 1132a,
    1132a-1, 1132d, 1132d-2, 1132g-3, 1132i-1, 1134h to 1134j, 1141,
    1145e, 1221e, and 1221e-1 of this title, section 4604 of Title 22,
    Foreign Relations and Intercourse, and sections 2752, 2753, and
    2756 of Title 42, The Public Health and Welfare, enacting
    provisions set out as notes under section 2752 of Title 42, and
    amending provisions set out as notes under sections 1011, 1071,
    1087dd, 1087kk, 1091, 1121, 1145d, 1221-1, and 1221e-1 of this
    title and section 2753 of Title 42] may be cited as the 'Higher
    Education Technical Amendments Act of 1987'."

                      SHORT TITLE OF 1986 AMENDMENTS                  
      Pub. L. 99-498, Sec. 1, Oct. 17, 1986, 100 Stat. 1268, provided
    that: "This Act [see Tables for classification] may be cited as the
    'Higher Education Amendments of 1986'."
      Pub. L. 99-320, Sec. 1, May 23, 1986, 100 Stat. 491, provided:
    "That this Act [amending sections 1078 and 1080a of this title and
    a provision set out as a note under section 1072 of this title] may
    be cited as the 'Student Financial Assistance Technical Corrections
    Act of 1986'."
      Pub. L. 99-272, title XVI, Sec. 16001(a), Apr. 7, 1986, 100 Stat.
    339, provided that: "This title [enacting sections 1078-3, 1080a,
    and 1091a of this title, amending sections 1072, 1074, 1075, 1077,
    1078, 1080, 1082, 1083a, 1085, 1087-1, 1087-2, 1087cc, 1087cc-1,
    1087dd, 1087gg, 1089, 1091, and 1094 of this title, enacting
    provisions set out as notes under sections 1072, 1078, and 1078-3
    of this title, and amending provisions set out as a note under
    section 1078 of this title] may be cited as the 'Student Financial
    Assistance Amendments of 1985'."

                      SHORT TITLE OF 1983 AMENDMENTS                  
      Pub. L. 98-95, Sec. 1, Sept. 26, 1983, 97 Stat. 708, provided:
    "That this Act [enacting section 1065a of this title, amending
    section 1069c of this title, enacting provisions set out as a note
    under section 1132a-1 of this title, and amending provisions set
    out as notes under sections 123 and 1069c of this title] may be
    cited as the 'Challenge Grant Amendments of 1983'."
      Pub. L. 98-79, Sec. 1, Aug. 15, 1983, 97 Stat. 476, provided:
    "That this Act [amending sections 1071, 1077, 1077a, 1078, 1078-2,
    1083a, 1087-1, 1087-2, 1087cc-1, and 1098 of this title, repealing
    section 1087-1a of this title, enacting provisions set out as notes
    under sections 1077, 1077a, 1078, and 1087-1 of this title, and
    amending provisions set out as notes under sections 1070a, 1078,
    and 1089 of this title] may be cited as the 'Student Loan
    Consolidation and Technical Amendments Act of 1983'."

                       SHORT TITLE OF 1982 AMENDMENT                   
      Pub. L. 97-301, Sec. 1, Oct. 13, 1982, 96 Stat. 1400, which
    provided: "That this Act [amending sections 1070a, 1083a, 1087-2,
    and 1087cc-1 of this title and enacting provisions set out as notes
    under sections 1070a, 1070b-3, 1078, 1087bb, 1089, and 1221e-1 of
    this title and section 2752 of Title 42, The Public Health and
    Welfare] may be cited as the 'Student Financial Assistance
    Technical Amendments Act of 1982'.", was repealed by Pub. L. 99-
    498, title IV, Sec. 408(b), Oct. 17, 1986, 100 Stat. 1495, eff.
    with respect to any academic year beginning on or after July 1,
    1988.

                       SHORT TITLE OF 1981 AMENDMENT                   
      Pub. L. 97-35, title V, subtitle B, Sec. 531, Aug. 13, 1981, 95
    Stat. 450, provided that: "This subtitle [amending sections 1075,
    1077, 1077a, 1078, 1078-1, 1078-2, 1087-1, 1087-2, 1087dd, 1089,
    1096, and 1232 of this title, repealing section 1087-3a of this
    title, and enacting provisions set out as notes under section 1078
    of this title] may be cited as the 'Postsecondary Student
    Assistance Amendments of 1981'."

                       SHORT TITLE OF 1980 AMENDMENT                   
      Pub. L. 96-374, Sec. 1, Oct. 3, 1980, 94 Stat. 1367, provided:
    "That this Act [enacting sections 239a, 1001 to 1005, 1011 to 1015,
    1016 to 1019, 1021, 1022, 1029, 1031 to 1034, 1041, 1042, 1047 to
    1047j, 1051, 1057 to 1069c, 1070d-1a to 1070d-2, 1077a, 1078-2,
    1083a, 1087-1a, 1087cc-1, 1087hh, 1087ii, 1088 to 1098, 1119b to
    1119b-5, 1119c to 1119c-2, 1121 to 1127, 1130 to 1132, 1132a to
    1132a-1, 1132b to 1132c, 1132d to 1132d-4, 1132e, 1132e-1, 1134d to
    1134p, 1135 to 1135a-3, 1136 to 1136d, 1143, 1144a, 1145, 1146,
    1221e-1b, 1221e-4, and 3063 to 3065 of this title, section 640c-2
    of Title 25, Indians, and sections 2753 and 2756b of Title 42, The
    Public Health and Welfare, amending sections 1070 to 1070c-3,
    1070d, 1070d-1, 1070e to 1077, 1078, 1078-1, 1079, 1080 to 1083,
    1085 to 1087-1, 1087-2, 1087aa to 1087cc, 1087dd to 1087gg, 1101 to
    1104, 1119 to 1119a-1, 1133 to 1134c, 1135c-1, 1141, 1142, 1221e,
    1226a, 1226c, and 1232 of this title, section 326a of Title 7,
    Agriculture, section 640c-1 of Title 25, sections 714 and 792 of
    Title 29, Labor, and sections 2751, 2752, and 2756 of Title 42,
    repealing sections 511 to 513, 1070c-4, 1070d-3, 1087-4, 1134q to
    1134s, 1142a, 1142b, 1145, 1145a, 1145c, 1172 to 1174, 1176, 1177,
    and 1221d of this title and section 2754 of Title 42, enacting
    provisions set out as notes under sections 236, 1001, 1119b, and
    1221-1 of this title and section 301 of Title 7, and amending
    provisions set out as notes under section 236 of this title and
    section 301 of Title 7] may be cited as the 'Education Amendments
    of 1980'."

                       SHORT TITLE OF 1979 AMENDMENT                   
      Pub. L. 96-49, Sec. 1, Aug. 13, 1979, 93 Stat. 351, provided:
    "That this Act [enacting section 1087gg of this title, amending
    this section and sections 513, 1021, 1042, 1051, 1070a, 1070b,
    1070c, 1070d, 1070d-2, 1070e-1, 1078, 1087-1, 1087aa, 1088, 1101,
    1119, 1121, 1132a, 1132b, 1132c, 1132c-4, 1134, 1134e, 1134i,
    1134n, 1134r-1, 1135, 1135a, 1136b, 1142b, 1221d, and 1221e of this
    title, enacting provisions set out as notes under sections 1070a,
    1087-1, 1087gg, and 1088 of this title, and amending provisions set
    out as a note under section 1070a of this title] may be cited as
    the 'Higher Education Technical Amendments of 1979'."

                      SHORT TITLE OF 1978 AMENDMENTS                  
      Pub. L. 95-566, Sec. 1, Nov. 1, 1978, 92 Stat. 2402, provided:
    "That this Act [enacting section 1087-3a of this title, amending
    sections 1070a, 1070c-2, 1070d-1, 1075, 1077, 1078, 1088 and 1088f
    of this title, and enacting provisions set out as a note under this
    section] may be cited as the 'Middle Income Student Assistance
    Act'."
      Pub. L. 95-336, Sec. 1, Aug. 4, 1978, 92 Stat. 451, provided:
    "That this Act [amending section 1070e-1 of this title, sections
    1001, 1002, and 1007 of Title 21, Food and Drugs, and former
    section 246 of Title 38, Veterans' Benefits, and enacting
    provisions set out as a note under section 1070e-1 of this title]
    may be cited as the 'Alcohol and Drug Abuse Education Amendments of
    1978'."

                      SHORT TITLE OF 1976 AMENDMENTS                  
      Pub. L. 94-482, Sec. 1, Oct. 12, 1976, 90 Stat. 2081, provided:
    "That this Act [see Tables for classification] may be cited as the
    'Education Amendments of 1976'."
      Pub. L. 94-328, Sec. 1, June 30, 1976, 90 Stat. 727, provided:
    "That this joint resolution [amending sections 1070a, 1074, 1078
    and 1078a of this title and enacting provisions set out as notes
    under section 1226a of this title and section 2756 of Title 42, The
    Public Health and Welfare] may be cited as the 'Emergency Technical
    Provisions Act of 1976'."

                       SHORT TITLE OF 1972 AMENDMENT                   
      Pub. L. 92-318, Sec. 1, June 23, 1972, 86 Stat. 235, provided:
    "That this Act [enacting chapter 36 (Sec. 1601 et seq.), chapter 37
    (Sec. 1651 et seq.), chapter 38 (Sec. 1681 et seq.), and sections
    241aa to 241ff, 887c, 887d, 900 to 900a-5, 1005a, 1021, 1031, 1042,
    1070 to 1070e, 1070e-1, 1087-1, 1087-2, 1087aa to 1087ff, 1088d to
    1088g, 1119a, 1132a to 1132e-1, 1134 to 1134s, 1135, 1135a, 1135b
    to 1135c, 1135c-1, 1142a, 1142b, 1144a, 1145a, 1211a, 1221a to
    1221h, 1227 of this title, and section 326a of Title 7,
    Agriculture, and 2756a of Title 42, The Public Health and Welfare,
    amending this section and sections 240, 241c, 241e, 331a, 332, 421,
    441, 511, 513, 822, 823, 842, 843, 863, 880b-3a, 1003, 1011, 1021,
    1022 to 1024, 1027, 1031, 1033, 1041, 1051 to 1056, 1061, 1068,
    1070, 1074, 1075, 1077, 1078, 1078a, 1080, 1083, 1084, 1087, 1087a,
    1087c, 1088, 1088c, 1091, 1091a to 1091c, 1101, 1102, 1108 to 1111,
    1115, 1116, 1118, 1119, 1119a, 1119b-2, 1121, 1129, 1133, 1133a,
    1134j, 1136, 1136a, 1136b, 1141, 1176, 1231, 1231a, 1232a, 1232c,
    1242, 1244, 1248, 1302, 1321 to 1323, 1341, 1352, 1371, 1391, and
    1412 of this title, and sections 329, 331, 343, 349, 361, and 1626
    of Title 7, sections 24, 84, 1464, and 1757 of Title 12, Banks and
    Banking, sections 203 and 213 of Title 29, Labor, and sections
    2751, 2752, and 2754 of Title 42, repealing sections 1, 2, 426, 711
    to 721, 731, 732, 746, 1021, 1031, 1032, 1060, 1118, 1119a, 1119b-
    2, and 1119c-4 of this title, and enacting provisions set out as
    notes under this section and sections 241a, 241e, 241aa, 331a, 425,
    821, 887d, 1005a, 1009, 1070, 1070e, 1074, 1075, 1087-2, 1087aa,
    1091a, 1132a, 1132c-3, 1135c, 1231, and 1232 of this title,
    sections 301 and 326a of Title 7, and section 3501 of Title 42] may
    be cited as the 'Education Amendments of 1972'."

                       SHORT TITLE OF 1968 AMENDMENT                   
      Pub. L. 90-575, Sec. 1, Oct. 16, 1968, 82 Stat. 1014, provided:
    "That this Act [enacting sections 451 to 455, 746, 1056, 1060,
    1087, 1087a to 1087c, 1088 to 1088c, 1089, 1119a-1, 1129a, 1133 to
    1133b, 1134 to 1134l, 1135, 1135a, 1135b, 1135c, 1136 to 1136b,
    1145, 1146 to 1150 of this title, amending this section and
    sections 403, 421 to 425, 425 note, 426, 441 to 445, 462 to 464,
    481 to 484, 511, 513, 562, 581, 584, 588, 591, 711, 713 to 718,
    731, 732, 743, 751, 758, 961, 1005, 1006, 1021 to 1024, 1031, 1033,
    1041, 1051, 1061, 1062, 1065 to 1068, 1071 to 1075, 1077, 1078,
    1080, 1083 to 1086, 1091c, 1101, 1104, 1108 to 1111, 1113, 1114,
    1115, 1118, 1119a, 1119b-2, 1121, 1124, 1125, 1141, 1142, 1143,
    1144 and 1176 of this title, section 1464 of Title 12, Banks and
    Banking, and sections 2741, 2751 to 2756, and 2809 of Title 42, The
    Public Health and Welfare, repealing sections 733, 981 to 996 of
    this title, and section 2757 of Title 42, and enacting provisions
    set out as notes under this section and sections 423 to 425, 445,
    462 to 464, 588, 713, 716 to 718, 743, 751, 981, 1006, 1022, 1024,
    1051, 1056, 1060, 1067, 1071, 1077, 1078, 1083, 1088b, and 1109 of
    this title, and sections 2751, 2753, 2754, and 2809 of Title 42]
    may be cited as the 'Higher Education Amendments of 1968'."

                       SHORT TITLE OF 1966 AMENDMENT                   
      Pub. L. 89-752, Sec. 1, Nov. 3, 1966, 80 Stat. 1240, provided:
    "That this Act [enacting section 1086 of this title, amending
    sections 403, 421, 425, 441, 443, 711-715, 731, 743, 744, 751,
    1022, 1051, 1072, 1121, and 1124 of this title, and enacting
    provisions set out as notes under sections 403, 443, 1022, 1071,
    and 1124 of this title] may be cited as the 'Higher Education
    Amendments of 1966'."

                                SHORT TITLE                            
      Pub. L. 89-329, Sec. 1, Nov. 8, 1965, 79 Stat. 1219, provided:
    "That this Act [enacting this chapter and section 2757 of Title 42,
    The Public Health and Welfare, and amending sections 403, 424, 425,
    441, 443, 591, 711, 713 to 717, 731, and 751 of this title, and
    sections 2751 to 2756, and 2761 of Title 42] may be cited as the
    'Higher Education Act of 1965'."
      Pub. L. 89-329, title V, Sec. 509, as added by Pub. L. 90-35,
    Sec. 8, provided that title V of Pub. L. 89-329 could be cited as
    the "Education Professions Development Act", prior to the general
    amendment of title V of Pub. L. 89-329 by Pub. L. 99-498, title V,
    Sec. 501(a), Oct. 17, 1986, 100 Stat. 1495.
      For short title of section 1092(f) of this title as the Jeanne
    Clery Disclosure of Campus Security Policy and Campus Crime
    Statistics Act, see section 1092(f)(15) of this title.

                        HIGHER EDUCATION EXTENSION                    
      Pub. L. 109-81, Sept. 30, 2005, 119 Stat. 2048, as amended by
    Pub. L. 109-150, Sec. 2(a), Dec. 30, 2005, 119 Stat. 2884; Pub. L.
    109-212, Sec. 2, Apr. 1, 2006, 120 Stat. 321; Pub. L. 109-238, Sec.
    2, June 30, 2006, 120 Stat. 507; Pub. L. 109-292, Sec. 2, Sept. 30,
    2006, 120 Stat. 1340, provided that:

      "SECTION 1. SHORT TITLE.
      "This Act may be cited as the 'Higher Education Extension Act of
    2005'.

      "SEC. 2. EXTENSION OF PROGRAMS.
      "(a) Extension of Duration. - The authorization of appropriations
    for, and the duration of, each program authorized under the Higher
    Education Act of 1965 (20 U.S.C. 1001 et seq.) shall be extended
    through June 30, 2007.
      "(b) Performance of Required and Authorized Functions. - If the
    Secretary of Education, a State, an institution of higher
    education, a guaranty agency, a lender, or another person or entity
    - 
        "(1) is required, in or for fiscal year 2004, to carry out
      certain acts or make certain determinations or payments under a
      program under the Higher Education Act of 1965, such acts,
      determinations, or payments shall be required to be carried out,
      made, or continued during the period of the extension under this
      section; or
        "(2) is permitted or authorized, in or for fiscal year 2004, to
      carry out certain acts or make certain determinations or payments
      under a program under the Higher Education Act of 1965, such
      acts, determinations, or payments are permitted or authorized to
      be carried out, made, or continued during the period of the
      extension under this section.
      "(c) Extension at Current Levels. - The amount authorized to be
    appropriated for a program described in subsection (a) during the
    period of extension under this section shall be the amount
    authorized to be appropriated for such program for fiscal year
    2004, or the amount appropriated for such program for such fiscal
    year, whichever is greater. Except as provided in any amendment to
    the Higher Education Act of 1965 enacted during fiscal year 2005 or
    2006, the amount of any payment required or authorized under
    subsection (b) in or for the period of the extension under this
    section shall be determined in the same manner as the amount of the
    corresponding payment required or authorized in or for fiscal year
    2004.
      "(d) Advisory Committees and Other Entities Continued. - Any
    advisory committee, interagency organization, or other entity that
    was, during fiscal year 2004, authorized or required to perform any
    function under the Higher Education Act of 1965 (20 U.S.C. 1001 et
    seq.), or in relation to programs under that Act, shall continue to
    exist and is authorized or required, respectively, to perform such
    function for the period of the extension under this section.
      "(e) Additional Extension not Permitted. - Section 422 of the
    General Education Provisions Act (20 U.S.C. 1226a) shall not apply
    to further extend the authorization of appropriations for any
    program described in subsection (a) on the basis of the extension
    of such program under this section.
      "(f) Exception. - The programs described in subsection (a) for
    which the authorization of appropriations, or the duration of
    which, is extended by this section include provisions applicable to
    institutions in, and students in or from, the Freely Associated
    States, except that those provisions shall be applicable with
    respect to institutions in, and students in or from, the Federated
    States of Micronesia and the Republic of the Marshall Islands only
    to the extent specified in Public Law 108-188 [48 U.S.C. 1921 et
    seq.]."
      [Pub. L. 109-292, Sec. 7, Sept. 30, 2006, 120 Stat. 1343,
    provided that: "Nothing in this Act [see Short Title of 2006
    Amendment note above], or in the Higher Education Extension Act of
    2005 [Pub. L. 109-81, set out above] as amended by this Act, shall
    be construed to limit or otherwise alter the authorizations of
    appropriations for, or the durations of, programs contained in the
    amendments made by the Higher Education Reconciliation Act of 2005
    (P.L. 109-171) [see Short Title of 2006 Amendment note above] to
    the provisions of the Higher Education Act of 1965 [20 U.S.C. 1001
    et seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short
    Title of 2004 Amendment note above]."]
      [Pub. L. 109-238, Sec. 3, June 30, 2006, 120 Stat. 507, provided
    that: "Nothing in this Act [see Short Title of 2006 Amendment note
    above], or in the Higher Education Extension Act of 2005 [Pub. L.
    109-81, set out above] as amended by this Act, shall be construed
    to limit or otherwise alter the authorizations of appropriations
    for, or the durations of, programs contained in the amendments made
    by the Higher Education Reconciliation Act of 2005 (Public Law 109-
    171) [see Short Title of 2006 Amendment note above] to the
    provisions of the Higher Education Act of 1965 [20 U.S.C. 1001 et
    seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short
    Title of 2004 Amendment note above]."]
      [Pub. L. 109-212, Sec. 3, Apr. 1, 2006, 120 Stat. 321, provided
    that: "Nothing in this Act [see Short Title of 2006 Amendment note
    above], or in the Higher Education Extension Act of 2005 [Pub. L.
    109-81, set out above] as amended by this Act, shall be construed
    to limit or otherwise alter the authorizations of appropriations
    for, or the durations of, programs contained in the amendments made
    by the Higher Education Reconciliation Act of 2005 (Public Law 109-
    171) [see Short Title of 2006 Amendment note above] to the
    provisions of the Higher Education Act of 1965 [20 U.S.C. 1001 et
    seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short
    Title of 2004 Amendment note above]."]
      Similar provisions were contained in Pub. L. 108-366, Oct. 25,
    2004, 118 Stat. 1741.

      STUDY OF OPPORTUNITIES FOR PARTICIPATION IN ATHLETICS PROGRAMS  
      Pub. L. 105-244, title VIII, Sec. 805, Oct. 7, 1998, 112 Stat.
    1807, required the Comptroller General to conduct a study of the
    opportunities for participation in intercollegiate athletics and to
    submit a report on the study to committees of Congress.

                           STYLISTIC CONSISTENCY                       
      Pub. L. 103-208, Sec. 2(m), Dec. 20, 1993, 107 Stat. 2486,
    provided that: "The Act [Pub. L. 89-329, see Short Title note
    above] is amended so that the section designation and section
    heading of each section of the Act shall be in the form and
    typeface of the section designation and heading of this section
    [107 Stat. 2457]."

     TERMS DEFINED FOR PURPOSES OF TITLES XIII, XIV, AND XV OF PUB. L.
                                  102-325
      Pub. L. 102-325, Sec. 1(c), July 23, 1992, 106 Stat. 448, as
    amended by Pub. L. 105-244, title I, Sec. 102(a)(6)(A), Oct. 7,
    1998, 112 Stat. 1618, provided that: "Unless otherwise provided
    therein, terms used in titles XIII, XIV, and XV [enacting sections
    1145h and 4426 of this title, sections 3301 to 3371 of Title 25,
    Indians, and sections 2401 to 2405 of Title 29, Labor, amending
    sections 1221e-1, 1232g, 3412, 4412, 4414, 4416, 4417, 4418, 4421,
    4422, 4423, 4424, 4425, 5381, and 5411 of this title, section 5315
    of Title 5, Government Organization and Employees, sections 4604
    and 4609 of Title 22, Foreign Relations and Intercourse, sections
    640c-1, 1810, 1836, and 1852 of Title 25, and sections 295g-8 and
    12576 of Title 42, The Public Health and Welfare, enacting
    provisions set out as notes under sections 1070, 1070a-11, 1070a-
    21, 1071, 1080, 1088, 1101, 1132a, 1134, 1221-1, 1221e, 1232g,
    1452, and 9003 of this title, amending provisions set out as a note
    under section 1091a of this title, and repealing provisions set out
    as a note under section 362 of Title 11, Bankruptcy] shall have the
    same meaning given to such terms in section 101 of the Higher
    Education Act of 1965 [this section]."

                   GENERAL PROVISIONS OF 1972 AMENDMENT               
      Pub. L. 92-318, Sec. 2, June 23, 1972, 86 Stat. 236, provided
    that:
      "(a) As used in this Act [See Short Title of 1972 Amendment note
    above] - 
        "(1) the term 'Secretary' means the Secretary of Health,
      Education, and Welfare [now Secretary of Education]; and
        "(2) the term 'Commissioner' means the Commissioner of
      Education [now Secretary of Education];
    unless the context requires another meaning.
      "(b) Unless otherwise specified, the redesignation of a section,
    subsection, or other designation by any amendment in this Act shall
    include the redesignation of any reference to such section,
    subsection, or other designation in any Act or regulation, however
    styled.
      "(c)(1) Unless otherwise specified, each provision of this Act
    and each amendment made by this Act shall be effective after June
    30, 1972, and with respect to appropriations for the fiscal year
    ending June 30, 1973, and succeeding fiscal years.
      "(2) Unless otherwise specified, in any case where an amendment
    made by this Act is to become effective after a date set herein, it
    shall be effective with the beginning of the day which immediately
    follows the date after which such amendment is effective.
      "(3) In any case where the effective date for an amendment made
    by this Act is expressly stated to be effective after June 30,
    1971, such amendment shall be deemed to have been enacted on July
    1, 1971."

         RULEMAKING REQUIREMENTS; PUBLICATION IN FEDERAL REGISTER     
      Pub. L. 90-575, title V, Sec. 505, Oct. 16, 1968, 82 Stat. 1063,
    provided for publication of rules and regulations in Federal
    Register, prior to repeal by Pub. L. 91-230, title IV, Sec.
    401(e)(2), Apr. 13, 1970, 84 Stat. 173.

    PRESIDENTIAL RECOMMENDATIONS BY DECEMBER 31, 1969, WITH RESPECT TO
                     POST-SECONDARY EDUCATION FOR ALL
      Pub. L. 90-575, title V, Sec. 508, Oct. 16, 1968, 82 Stat. 1063,
    authorized the President, on or before Dec. 31, 1969, to submit to
    the Congress proposals relative to the feasibility of making
    available a post-secondary education to all young Americans who
    qualify and seek it.

-End-



-CITE-
    20 USC Sec. 1002                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part A - Definitions

-HEAD-
    Sec. 1002. Definition of institution of higher education for
      purposes of student assistance programs

-STATUTE-
    (a) Definition of institution of higher education for purposes of
      student assistance programs
      (1) Inclusion of additional institutions
        Subject to paragraphs (2) through (4) of this subsection, the
      term "institution of higher education" for purposes of subchapter
      IV of this chapter and part C of subchapter I of chapter 34 of
      title 42 includes, in addition to the institutions covered by the
      definition in section 1001 of this title - 
          (A) a proprietary institution of higher education (as defined
        in subsection (b) of this section);
          (B) a postsecondary vocational institution (as defined in
        subsection (c) of this section); and
          (C) only for the purposes of part B of subchapter IV of this
        chapter, an institution outside the United States that is
        comparable to an institution of higher education as defined in
        section 1001 of this title and that has been approved by the
        Secretary for the purpose of part B of subchapter IV of this
        chapter.
      (2) Institutions outside the United States
        (A) In general
          For the purpose of qualifying as an institution under
        paragraph (1)(C), the Secretary shall establish criteria by
        regulation for the approval of institutions outside the United
        States and for the determination that such institutions are
        comparable to an institution of higher education as defined in
        section 1001 of this title (except that a graduate medical
        school, or a veterinary school, located outside the United
        States shall not be required to meet the requirements of
        section 1001(a)(4) of this title). Such criteria shall include
        a requirement that a student attending such school outside the
        United States is ineligible for loans made, insured, or
        guaranteed under part B of subchapter IV of this chapter unless
        - 
            (i) in the case of a graduate medical school located
          outside the United States - 
              (I)(aa) at least 60 percent of those enrolled in, and at
            least 60 percent of the graduates of, the graduate medical
            school outside the United States were not persons described
            in section 1091(a)(5) of this title in the year preceding
            the year for which a student is seeking a loan under part B
            of subchapter IV of this chapter; and
              (bb) at least 60 percent of the individuals who were
            students or graduates of the graduate medical school
            outside the United States or Canada (both nationals of the
            United States and others) taking the examinations
            administered by the Educational Commission for Foreign
            Medical Graduates received a passing score in the year
            preceding the year for which a student is seeking a loan
            under part B of subchapter IV of this chapter; or
              (II) the institution has a clinical training program that
            was approved by a State as of January 1, 1992; or

            (ii) in the case of a veterinary school located outside the
          United States that does not meet the requirements of section
          1001(a)(4) of this title, the institution's students complete
          their clinical training at an approved veterinary school
          located in the United States.
        (B) Advisory panel
          (i) In general
            For the purpose of qualifying as an institution under
          paragraph (1)(C) of this subsection, the Secretary shall
          establish an advisory panel of medical experts that shall - 
              (I) evaluate the standards of accreditation applied to
            applicant foreign medical schools; and
              (II) determine the comparability of those standards to
            standards for accreditation applied to United States
            medical schools.
          (ii) Special rule
            If the accreditation standards described in clause (i) are
          determined not to be comparable, the foreign medical school
          shall be required to meet the requirements of section 1001 of
          this title.
        (C) Failure to release information
          The failure of an institution outside the United States to
        provide, release, or authorize release to the Secretary of such
        information as may be required by subparagraph (A) shall render
        such institution ineligible for the purpose of part B of
        subchapter IV of this chapter.
        (D) Special rule
          If, pursuant to this paragraph, an institution loses
        eligibility to participate in the programs under subchapter IV
        of this chapter and part C of subchapter I of chapter 34 of
        title 42, then a student enrolled at such institution may,
        notwithstanding such loss of eligibility, continue to be
        eligible to receive a loan under part B (!1) while attending
        such institution for the academic year succeeding the academic
        year in which such loss of eligibility occurred.

      (3) Limitations based on course of study or enrollment
        An institution shall not be considered to meet the definition
      of an institution of higher education in paragraph (1) if such
      institution - 
          (A) offers more than 50 percent of such institution's courses
        by correspondence (excluding courses offered by
        telecommunications as defined in section 1091(l)(4) of this
        title), unless the institution is an institution that meets the
        definition in section 2302(3)(C) of this title;
          (B) enrolls 50 percent or more of the institution's students
        in correspondence courses (excluding courses offered by
        telecommunications as defined in section 1091(l)(4) of this
        title), unless the institution is an institution that meets the
        definition in such section, except that the Secretary, at the
        request of such institution, may waive the applicability of
        this subparagraph to such institution for good cause, as
        determined by the Secretary in the case of an institution of
        higher education that provides a 2- or 4-year program of
        instruction (or both) for which the institution awards an
        associate or baccalaureate degree, respectively;
          (C) has a student enrollment in which more than 25 percent of
        the students are incarcerated, except that the Secretary may
        waive the limitation contained in this subparagraph for a
        nonprofit institution that provides a 2- or 4-year program of
        instruction (or both) for which the institution awards a
        bachelor's degree, or an associate's degree or a postsecondary
        diploma, respectively; or
          (D) has a student enrollment in which more than 50 percent of
        the students do not have a secondary school diploma or its
        recognized equivalent, and does not provide a 2- or 4-year
        program of instruction (or both) for which the institution
        awards a bachelor's degree or an associate's degree,
        respectively, except that the Secretary may waive the
        limitation contained in this subparagraph if a nonprofit
        institution demonstrates to the satisfaction of the Secretary
        that the institution exceeds such limitation because the
        institution serves, through contracts with Federal, State, or
        local government agencies, significant numbers of students who
        do not have a secondary school diploma or its recognized
        equivalent.
      (4) Limitations based on management
        An institution shall not be considered to meet the definition
      of an institution of higher education in paragraph (1) if - 
          (A) the institution, or an affiliate of the institution that
        has the power, by contract or ownership interest, to direct or
        cause the direction of the management or policies of the
        institution, has filed for bankruptcy, except that this
        paragraph shall not apply to a nonprofit institution, the
        primary function of which is to provide health care educational
        services (or an affiliate of such an institution that has the
        power, by contract or ownership interest, to direct or cause
        the direction of the institution's management or policies) that
        files for bankruptcy under chapter 11 of title 11 between July
        1, 1998, and December 1, 1998; or
          (B) the institution, the institution's owner, or the
        institution's chief executive officer has been convicted of, or
        has pled nolo contendere or guilty to, a crime involving the
        acquisition, use, or expenditure of funds under subchapter IV
        of this chapter and part C of subchapter I of chapter 34 of
        title 42, or has been judicially determined to have committed
        fraud involving funds under subchapter IV of this chapter and
        part C of subchapter I of chapter 34 of title 42.
      (5) Certification
        The Secretary shall certify an institution's qualification as
      an institution of higher education in accordance with the
      requirements of subpart 3 of part G of subchapter IV of this
      chapter.
      (6) Loss of eligibility
        An institution of higher education shall not be considered to
      meet the definition of an institution of higher education in
      paragraph (1) if such institution is removed from eligibility for
      funds under subchapter IV of this chapter and part C of
      subchapter I of chapter 34 of title 42 as a result of an action
      pursuant to part G of subchapter IV of this chapter.
    (b) Proprietary institution of higher education
      (1) Principal criteria
        For the purpose of this section, the term "proprietary
      institution of higher education" means a school that - 
          (A) provides an eligible program of training to prepare
        students for gainful employment in a recognized occupation;
          (B) meets the requirements of paragraphs (1) and (2) of
        section 1001(a) of this title;
          (C) does not meet the requirement of paragraph (4) of section
        1001(a) of this title;
          (D) is accredited by a nationally recognized accrediting
        agency or association recognized by the Secretary pursuant to
        part G of subchapter IV of this chapter;
          (E) has been in existence for at least 2 years; and
          (F) has at least 10 percent of the school's revenues from
        sources that are not derived from funds provided under
        subchapter IV of this chapter and part C of subchapter I of
        chapter 34 of title 42, as determined in accordance with
        regulations prescribed by the Secretary.
      (2) Additional institutions
        The term "proprietary institution of higher education" also
      includes a proprietary educational institution in any State that,
      in lieu of the requirement in paragraph (1) of section 1001(a) of
      this title, admits as regular students persons who are beyond the
      age of compulsory school attendance in the State in which the
      institution is located.
    (c) Postsecondary vocational institution
      (1) Principal criteria
        For the purpose of this section, the term "postsecondary
      vocational institution" means a school that - 
          (A) provides an eligible program of training to prepare
        students for gainful employment in a recognized occupation;
          (B) meets the requirements of paragraphs (1), (2), (4), and
        (5) of section 1001(a) of this title; and
          (C) has been in existence for at least 2 years.
      (2) Additional institutions
        The term "postsecondary vocational institution" also includes
      an educational institution in any State that, in lieu of the
      requirement in paragraph (1) of section 1001(a) of this title,
      admits as regular students persons who are beyond the age of
      compulsory school attendance in the State in which the
      institution is located.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 102, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1586; amended Pub. L. 108-
    98, Sec. 1(a), Oct. 10, 2003, 117 Stat. 1174; Pub. L. 109-171,
    title VIII, Sec. 8002, Feb. 8, 2006, 120 Stat. 155; Pub. L. 109-
    270, Sec. 2(c)(1), Aug. 12, 2006, 120 Stat. 746.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1088(a) to (c) of this title prior to repeal by Pub. L. 105-244.
      A prior section 1002, Pub. L. 89-329, title I, Sec. 102, as added
    Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat. 459,
    related to partnership agreements required for grant eligibility,
    prior to the general amendment of this subchapter by Pub. L. 105-
    244.
      Another prior section 1002, Pub. L. 89-329, title I, Sec. 102, as
    added Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat.
    1278, defined terms "continuing education", "adult learner",
    "eligible institution", and "qualified entity", prior to the
    general amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1002, Pub. L. 89-329, title I, Sec. 102, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1374, provided for establishment of Commission on National
    Development in Postsecondary Education, prior to the general
    amendment of this subchapter by Pub. L. 99-498.
      Another prior section 1002, Pub. L. 89-329, title I, Sec. 102,
    Nov. 8, 1965, 79 Stat. 1219; Pub. L. 94-482, title I, Sec.
    101(b)(1), (g)(2), Oct. 12, 1976, 90 Stat. 2083, 2086, defined the
    terms "community service program", "continuing education program",
    and "resource materials sharing programs", prior to the general
    amendment of this subchapter by Pub. L. 96-374.

                                AMENDMENTS                            
      2006 - Subsec. (a)(3)(A). Pub. L. 109-270 substituted "2302(3)(C)
    of this title" for "2471(4)(C) of this title".
      Pub. L. 109-171, Sec. 8002(1), inserted "(excluding courses
    offered by telecommunications as defined in section 1091(l)(4) of
    this title)" after "courses by correspondence".
      Subsec. (a)(3)(B). Pub. L. 109-171, Sec. 8002(2), inserted
    "(excluding courses offered by telecommunications as defined in
    section 1091(l)(4) of this title)" after "correspondence courses".
      2003 - Subsec. (a)(2)(A). Pub. L. 108-98 amended subpar. (A)
    generally. Prior to amendment, subpar. (A) required the Secretary
    to establish criteria for approval of institutions outside the
    United States for purposes of par. (1)(C), including certain
    requirements for graduate medical or veterinary schools.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-171, title VIII, Sec. 8001(c), Feb. 8, 2006, 120
    Stat. 155, provided that: "Except as otherwise provided in this
    subtitle [subtitle A (Secs. 8001-8024) of title VIII of Pub. L. 109-
    171, see Short Title of 2006 Amendment note set out under section
    1001 of this title] or the amendments made by this subtitle, the
    amendments made by this subtitle shall be effective July 1, 2006."

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Pub. L. 108-98, Sec. 1(b), Oct. 10, 2003, 117 Stat. 1175,
    provided that: "This Act [amending this section] and the amendments
    made by this Act shall be effective as if enacted on October 1,
    1998."

-FOOTNOTE-
    (!1) So in original. Probably should be "part B of subchapter IV of
         this chapter".


-End-



-CITE-
    20 USC Sec. 1003                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part A - Definitions

-HEAD-
    Sec. 1003. Additional definitions

-STATUTE-
      In this chapter:
      (1) Combination of institutions of higher education
        The term "combination of institutions of higher education"
      means a group of institutions of higher education that have
      entered into a cooperative arrangement for the purpose of
      carrying out a common objective, or a public or private nonprofit
      agency, organization, or institution designated or created by a
      group of institutions of higher education for the purpose of
      carrying out a common objective on the group's behalf.
      (2) Department
        The term "Department" means the Department of Education.
      (3) Disability
        The term "disability" has the same meaning given that term
      under section 12102(2) of title 42.
      (4) Elementary school
        The term "elementary school" has the same meaning given that
      term under section 7801 of this title.
      (5) Gifted and talented
        The term "gifted and talented" has the same meaning given that
      term under section 7801 of this title.
      (6) Local educational agency
        The term "local educational agency" has the same meaning given
      that term under section 7801 of this title.
      (7) New borrower
        The term "new borrower" when used with respect to any date
      means an individual who on that date has no outstanding balance
      of principal or interest owing on any loan made, insured, or
      guaranteed under subchapter IV of this chapter and part C of
      subchapter I of chapter 34 of title 42.
      (8) Nonprofit
        The term "nonprofit" as applied to a school, agency,
      organization, or institution means a school, agency,
      organization, or institution owned and operated by one or more
      nonprofit corporations or associations, no part of the net
      earnings of which inures, or may lawfully inure, to the benefit
      of any private shareholder or individual.
      (9) School or department of divinity
        The term "school or department of divinity" means an
      institution, or a department or a branch of an institution, the
      program of instruction of which is designed for the education of
      students - 
          (A) to prepare the students to become ministers of religion
        or to enter upon some other religious vocation (or to provide
        continuing training for any such vocation); or
          (B) to prepare the students to teach theological subjects.
      (10) Secondary school
        The term "secondary school" has the same meaning given that
      term under section 7801 of this title.
      (11) Secretary
        The term "Secretary" means the Secretary of Education.
      (12) Service-learning
        The term "service-learning" has the same meaning given that
      term under section 12511(23) of title 42.
      (13) Special education teacher
        The term "special education teacher" means teachers who teach
      children with disabilities as defined in section 1401 of this
      title.
      (14) State educational agency
        The term "State educational agency" has the same meaning given
      that term under section 7801 of this title.
      (15) State higher education agency
        The term "State higher education agency" means the officer or
      agency primarily responsible for the State supervision of higher
      education.
      (16) State; Freely Associated States
        (A) State
          The term "State" includes, in addition to the several States
        of the United States, the Commonwealth of Puerto Rico, the
        District of Columbia, Guam, American Samoa, the United States
        Virgin Islands, the Commonwealth of the Northern Mariana
        Islands, and the Freely Associated States.
        (B) Freely Associated States
          The term "Freely Associated States" means the Republic of the
        Marshall Islands, the Federated States of Micronesia, and the
        Republic of Palau.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 103, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1589; amended Pub. L. 107-
    110, title X, Sec. 1076(g), Jan. 8, 2002, 115 Stat. 2091.)

-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.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1141(b) of this title prior to repeal by Pub. L. 105-244.
      A prior section 1003, Pub. L. 89-329, title I, Sec. 103, as added
    Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat. 459;
    amended Pub. L. 103-208, Sec. 2(a)(1), Dec. 20, 1993, 107 Stat.
    2457, related to authority to make grants under the school,
    college, and university partnership grant program, prior to the
    general amendment of this subchapter by Pub. L. 105-244.
      Another prior section 1003, Pub. L. 89-329, title I, Sec. 103, as
    added Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat.
    1279, related to limitation on contract authority, prior to the
    general amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1003, Pub. L. 89-329, title I, Sec. 103, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1375, related to duties of the Commission on National Development
    in Postsecondary Education, prior to the general amendment of this
    subchapter by Pub. L. 99-498.
      Another prior section 1003, Pub. L. 89-329, title I, Sec. 103,
    Nov. 8, 1965, 79 Stat. 1219; Pub. L. 92-318, title I, Sec.
    102(a)(2), June 23, 1972, 86 Stat. 237; Pub. L. 94-482, title I,
    Sec. 101(b)(2), (g)(2), Oct. 12, 1976, 90 Stat. 2084, 2086; Pub. L.
    95-43, Sec. 1(a)(1), June 15, 1977, 91 Stat. 213; Pub. L. 96-96,
    Sec. 1, Oct. 31, 1979, 93 Stat. 729, provided for the allotment of
    funds to States, prior to the general amendment of this subchapter
    by Pub. L. 96-374.
      A prior section 1004, Pub. L. 89-329, title I, Sec. 104, as added
    Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat. 460;
    amended Pub. L. 103-208, Sec. 2(a)(2), Dec. 20, 1993, 107 Stat.
    2457, related to grant applications, prior to the general amendment
    of this subchapter by Pub. L. 105-244.
      Another prior section 1004, Pub. L. 89-329, title I, Sec. 104, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1376, related to administrative provisions and powers of Commission
    on National Development in Postsecondary Education, prior to the
    general amendment of this subchapter by Pub. L. 99-498.
      Another prior section 1004, Pub. L. 89-329, title I, Sec. 104,
    Nov. 8, 1965, 79 Stat. 1220; Pub. L. 94-482, title I, Sec.
    101(b)(3), Oct. 12, 1976, 90 Stat. 2084; Pub. L. 95-43, Sec.
    1(a)(2), June 15, 1977, 91 Stat. 213, described the allowable uses
    of States' allotments of funds, prior to the general amendment of
    this subchapter by Pub. L. 96-374.
      A prior section 1005, Pub. L. 89-329, title I, Sec. 105, as added
    Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat. 461,
    related to peer review of applications, prior to the general
    amendment of this subchapter by Pub. L. 105-244.
      Another prior section 1005, Pub. L. 89-329, title I, Sec. 105, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1377, authorized appropriations, prior to the general amendment of
    this subchapter by Pub. L. 99-498.
      Another prior section 1005, Pub. L. 89-329, title I, Sec. 105,
    Nov. 8, 1965, 79 Stat. 1220; Pub. L. 90-575, title II, Sec. 202,
    Oct. 16, 1968, 82 Stat. 1036; Pub. L. 94-482, title I, Sec.
    101(b)(4)-(10), (g)(2), Oct. 12, 1976, 90 Stat. 2084-2086; Pub. L.
    95-43, Sec. 1(a)(3), (b)(1), (2), June 15, 1977, 91 Stat. 213, 218,
    set out the requisite features of State plans, prior to the general
    amendment of this subchapter by Pub. L. 96-374.
      A prior section 1005a, Pub. L. 89-329, title I, Sec. 106, as
    added Pub. L. 92-318, title I, Sec. 102(a)(1), June 23, 1972, 86
    Stat. 237; amended Pub. L. 94-482, title I, Sec. 101(g)(2), Oct.
    12, 1976, 90 Stat. 2086, provided for special programs and projects
    relating to national and regional problems, prior to the general
    amendment of this subchapter by Pub. L. 96-374.
      A prior section 1006, Pub. L. 89-329, title I, Sec. 106, as added
    Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat. 461,
    authorized appropriations, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 1006, Pub. L. 89-329, title I, Sec. 107,
    formerly Sec. 106, Nov. 8, 1965, 79 Stat. 1221; Pub. L. 90-575,
    title II, Sec. 203(a), Oct. 16, 1968, 82 Stat. 1036, renumbered
    Pub. L. 92-318, title I, Sec. 102(a)(1), June 23, 1972, 86 Stat.
    236, and amended Pub. L. 94-482, title I, Sec. 101(c), (g)(2), Oct.
    12, 1976, 90 Stat. 2085, 2086, related to payment and method of
    payment of funds, prior to the general amendment of this subchapter
    by Pub. L. 96-374.
      Prior sections 1007 to 1010 were omitted in the general amendment
    of this subchapter by Pub. L. 96-374.
      Section 1007, Pub. L. 89-329, title I, Sec. 108, formerly Sec.
    107, Nov. 8, 1965, 79 Stat. 1222, renumbered Pub. L. 92-318, title
    I, Sec. 102(a)(1), June 23, 1972, 86 Stat. 236, and amended Pub. L.
    94-482, title I, Sec. 101(g)(2), Oct. 12, 1976, 90 Stat. 2086,
    related to disapproval of State plans, notice and hearing, findings
    of Commissioner of Education, and notification to State of
    noneligibility.
      Section 1008, Pub. L. 89-329, title I, Sec. 109, formerly Sec.
    108, Nov. 8, 1965, 79 Stat. 1222, renumbered Pub. L. 92-318, title
    I, Sec. 102(a)(1), June 23, 1972, 86 Stat. 236, and amended Pub. L.
    94-482, title I, Sec. 101(d), Oct. 12, 1976, 90 Stat. 2085,
    provided for judicial review of actions of Commissioner of
    Education and scope of that review.
      Section 1008a, Pub. L. 89-329, title I, Sec. 110, as added Pub.
    L. 93-29, title VIII, Sec. 803, May 3, 1973, 87 Stat. 59, and
    amended Pub. L. 94-135, title II, Sec. 201, Nov. 28, 1975, 89 Stat.
    726; Pub. L. 94-482, title I, Sec. 101(g)(2), Oct. 12, 1976, 90
    Stat. 2086, provided for programs and projects relating to problems
    of the elderly.
      Section 1008b, Pub. L. 89-329, title I, Sec. 111, as added Pub.
    L. 94-482, title I, Sec. 101(e), Oct. 12, 1976, 90 Stat. 2085,
    related to technical assistance and administration.
      Section 1009, Pub. L. 89-329, title I, Sec. 112, formerly Sec.
    109, Nov. 8, 1965, 79 Stat. 1223; Pub. L. 91-230, title IV, Sec.
    401(h)(4), Apr. 13, 1970, 84 Stat. 174, renumbered Sec. 110, Pub.
    L. 92-318, title I, Sec. 102(a)(1), June 23, 1972, 86 Stat. 236,
    renumbered Sec. 111, Pub. L. 93-29, title VIII, Sec. 803, May 3,
    1973, 87 Stat. 59; Pub. L. 93-380, title VIII, Sec. 831, Aug. 21,
    1974, 88 Stat. 603; Pub. L. 93-644, Sec. 9(a), Jan. 4, 1975, 88
    Stat. 2310, renumbered Sec. 112 and amended Pub. L. 94-482, title
    I, Sec. 101(e), (f)(1), (g)(2), Oct. 12, 1976, 90 Stat. 2085, 2086;
    1977 Reorg. Plan No. 2, Sec. 7(a)(13), 42 F.R. 62461, 91 Stat.
    1637, provided for creation of a National Advisory Council on
    Extension and Continuing Education.
      Section 1010, Pub. L. 89-329, title I, Sec. 113, formerly Sec.
    110, Nov. 8, 1965, 79 Stat. 1224, renumbered Sec. 111, Pub. L. 92-
    318, title I, Sec. 102(a)(1), June 23, 1972, 86 Stat. 236,
    renumbered Sec. 112, Pub. L. 93-29, title VIII, Sec. 803, May 3,
    1973, 87 Stat. 59, renumbered Sec. 113 and amended Pub. L. 94-482,
    title I, Sec. 101(e), (f)(2), Oct. 12, 1976, 90 Stat. 2085, 2086,
    directed that nothing in the section be held to modify any
    authority under the Smith-Lever Act, section 341 et seq. of Title
    7, Agriculture.

                                AMENDMENTS                            
      2002 - Pars. (4) to (6), (10), (14). Pub. L. 107-110 substituted
    "7801" for "8801".

                     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.

-End-


-CITE-
    20 USC Part B - Additional General Provisions               01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
                  PART B - ADDITIONAL GENERAL PROVISIONS              

-End-



-CITE-
    20 USC Sec. 1011                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011. Antidiscrimination

-STATUTE-
    (a) In general
      Institutions of higher education receiving Federal financial
    assistance may not use such financial assistance, directly or
    indirectly, to undertake any study or project or fulfill the terms
    of any contract containing an express or implied provision that any
    person or persons of a particular race, religion, sex, or national
    origin be barred from performing such study, project, or contract,
    except that nothing in this subsection shall be construed to
    prohibit an institution from conducting objective studies or
    projects concerning the nature, effects, or prevention of
    discrimination, or to have the institution's curriculum restricted
    on the subject of discrimination.
    (b) Limitations on statutory construction
      Nothing in this chapter shall be construed to limit the rights or
    responsibilities of any individual under the Americans With
    Disabilities Act of 1990 [42 U.S.C. 12101 et seq.], the
    Rehabilitation Act of 1973 [29 U.S.C. 701 et seq.], or any other
    law.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 111, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1590.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (b), was in the original
    "this Act", meaning Pub. L. 89-329, as amended, known as the Higher
    Education Act of 1965. For complete classification of this Act to
    the Code, see Short Title note set out under section 1001 of this
    title and Tables.
      The Americans with Disabilities Act of 1990, referred to in
    subsec. (b), is Pub. L. 101-336, July 26, 1990, 104 Stat. 327, as
    amended, which is classified principally to chapter 126 (Sec. 12101
    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 12101 of Title 42 and Tables.
      The Rehabilitation Act of 1973, referred to in subsec. (b), is
    Pub. L. 93-112, Sept. 26, 1973, 87 Stat. 355, as amended, which is
    classified generally to chapter 16 (Sec. 701 et seq.) of Title 29,
    Labor. For complete classification of this Act to the Code, see
    Short Title note set out under section 701 of Title 29 and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section 1142
    of this title prior to repeal by Pub. L. 105-244.
      A prior section 1011, Pub. L. 89-329, title I, Sec. 121, as added
    Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat. 461,
    stated congressional findings and purposes of articulation
    agreements grant program, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 1011, Pub. L. 89-329, title I, Sec. 111, as
    added Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat.
    1279, related to institutional development, prior to the general
    amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1011, Pub. L. 89-329, title I, Sec. 111, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1377, stated Congressional findings with respect to education
    outreach programs, prior to the general amendment of this
    subchapter by Pub. L. 99-498.
      Another prior section 1011, Pub. L. 89-329, title I, Sec. 114,
    formerly Sec. 111, Nov. 8, 1965, 79 Stat. 1224, renumbered Sec. 112
    and amended Pub. L. 92-318, title I, Secs. 102(a)(1), 131(d)(2)(A),
    June 23, 1972, 86 Stat. 236, 260, renumbered Sec. 113, Pub. L. 93-
    29, title VIII, Sec. 803, May 3, 1973, 87 Stat. 59, renumbered
    Sec. 114, Pub. L. 94-482, title I, Sec. 101(e), Oct. 12, 1976, 90
    Stat. 2085, prohibited the giving of grants for programs relating
    to sectarian instruction or worship, prior to the general amendment
    of this subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1011a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011a. Protection of student speech and association rights

-STATUTE-
    (a) Protection of rights
      It is the sense of Congress that no student attending an
    institution of higher education on a full- or part-time basis
    should, on the basis of participation in protected speech or
    protected association, be excluded from participation in, be denied
    the benefits of, or be subjected to discrimination or official
    sanction under any education program, activity, or division of the
    institution directly or indirectly receiving financial assistance
    under this chapter, whether or not such program, activity, or
    division is sponsored or officially sanctioned by the institution.
    (b) Construction
      Nothing in this section shall be construed - 
        (1) to discourage the imposition of an official sanction on a
      student that has willfully participated in the disruption or
      attempted disruption of a lecture, class, speech, presentation,
      or performance made or scheduled to be made under the auspices of
      the institution of higher education; or
        (2) to prevent an institution of higher education from taking
      appropriate and effective action to prevent violations of State
      liquor laws, to discourage binge drinking and other alcohol
      abuse, to protect students from sexual harassment including
      assault and date rape, to prevent hazing, or to regulate
      unsanitary or unsafe conditions in any student residence.
    (c) Definitions
      For the purposes of this section:
      (1) Official sanction
        The term "official sanction" - 
          (A) means expulsion, suspension, probation, censure,
        condemnation, reprimand, or any other disciplinary, coercive,
        or adverse action taken by an institution of higher education
        or administrative unit of the institution; and
          (B) includes an oral or written warning made by an official
        of an institution of higher education acting in the official
        capacity of the official.
      (2) Protected association
        The term "protected association" means the joining, assembling,
      and residing with others that is protected under the first and
      14th amendments to the Constitution, or would be protected if the
      institution of higher education involved were subject to those
      amendments.
      (3) Protected speech
        The term "protected speech" means speech that is protected
      under the first and 14th amendments to the Constitution, or would
      be protected if the institution of higher education involved were
      subject to those amendments.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 112, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1591.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (a), 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.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1011a, Pub. L. 89-329, title I, Sec. 122, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    462, authorized grants to States, prior to the general amendment of
    this subchapter by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1011b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011b. Treatment of territories and territorial student
      assistance

-STATUTE-
    (a) Waiver authority
      The Secretary is required to waive the eligibility criteria of
    any postsecondary education program administered by the Department
    where such criteria do not take into account the unique
    circumstances in Guam, the United States Virgin Islands, American
    Samoa, the Commonwealth of the Northern Mariana Islands, and the
    Freely Associated States.
    (b) Eligibility
      Notwithstanding any other provision of law, an institution of
    higher education that is located in any of the Freely Associated
    States, rather than in another State, shall be eligible, if
    otherwise qualified, for assistance under division 1 of subpart 2
    of part A of subchapter IV of this chapter. This subsection shall
    cease to be effective on September 30, 2004.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 113, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1591.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1144a of this title prior to repeal by Pub. L. 105-244.
      A prior section 1011b, Pub. L. 89-329, title I, Sec. 123, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    462, related to State applications for grants, prior to the general
    amendment of this subchapter by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1011c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011c. National Advisory Committee on Institutional Quality
      and Integrity

-STATUTE-
    (a) Establishment
      There is established in the Department a National Advisory
    Committee on Institutional Quality and Integrity (hereafter in this
    section referred to as the "Committee"), which shall be composed of
    15 members appointed by the Secretary from among individuals who
    are representatives of, or knowledgeable concerning, education and
    training beyond secondary education, including representatives of
    all sectors and types of institutions of higher education (as
    defined in section 1002 of this title), to assess the process of
    eligibility and certification of such institutions under subchapter
    IV of this chapter and part C of subchapter I of chapter 34 of
    title 42 and the provision of financial aid under subchapter IV of
    this chapter and part C of subchapter I of chapter 34 of title 42.
    (b) Terms of members
      Terms of office of each member of the Committee shall be 3 years,
    except that any member appointed to fill a vacancy occurring prior
    to the expiration of the term for which the member's predecessor
    was appointed shall be appointed for the remainder of such term.
    (c) Public notice
      The Secretary shall - 
        (1) annually publish in the Federal Register a list containing
      the name of each member of the Committee and the date of the
      expiration of the term of office of the member; and
        (2) publicly solicit nominations for each vacant position or
      expiring term of office on the Committee.
    (d) Functions
      The Committee shall - 
        (1) advise the Secretary with respect to establishment and
      enforcement of the standards of accrediting agencies or
      associations under subpart 2 of part G of subchapter IV of this
      chapter;
        (2) advise the Secretary with respect to the recognition of a
      specific accrediting agency or association;
        (3) advise the Secretary with respect to the preparation and
      publication of the list of nationally recognized accrediting
      agencies and associations;
        (4) develop and recommend to the Secretary standards and
      criteria for specific categories of vocational training
      institutions and institutions of higher education for which there
      are no recognized accrediting agencies, associations, or State
      agencies, in order to establish the eligibility of such
      institutions on an interim basis for participation in federally
      funded programs;
        (5) advise the Secretary with respect to the eligibility and
      certification process for institutions of higher education under
      subchapter IV of this chapter and part C of subchapter I of
      chapter 34 of title 42, together with recommendations for
      improvements in such process;
        (6) advise the Secretary with respect to the relationship
      between - 
          (A) accreditation of institutions of higher education and the
        certification and eligibility of such institutions; and
          (B) State licensing responsibilities with respect to such
        institutions; and

        (7) carry out such other advisory functions relating to
      accreditation and institutional eligibility as the Secretary may
      prescribe.
    (e) Meeting procedures
      The Committee shall meet not less than twice each year at the
    call of the Chairperson. The date of, and agenda for, each meeting
    of the Committee shall be submitted in advance to the Secretary for
    approval. A representative of the Secretary shall be present at all
    meetings of the Committee.
    (f) Report
      Not later than November 30 of each year, the Committee shall make
    an annual report through the Secretary to Congress. The annual
    report shall contain - 
        (1) a list of the members of the Committee and their addresses;
        (2) a list of the functions of the Committee;
        (3) a list of dates and places of each meeting during the
      preceding fiscal year; and
        (4) a summary of the activities, findings and recommendations
      made by the Committee during the preceding fiscal year.
    (g) Termination
      The Committee shall cease to exist on September 30, 2004.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 114, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1592.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section 1145
    of this title prior to repeal by Pub. L. 105-244.
      A prior section 1011c, Pub. L. 89-329, title I, Sec. 124, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    463, related to local applications for grants, prior to the general
    amendment of this subchapter by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1011d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011d. Student representation

-STATUTE-
      The Secretary shall, in appointing individuals to any commission,
    committee, board, panel, or other body in connection with the
    administration of this chapter, include individuals who are, at the
    time of appointment, attending an institution of higher education.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 115, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1593.)

-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.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1145b of this title prior to repeal by Pub. L. 105-244.
      A prior section 1011d, Pub. L. 89-329, title I, Sec. 125, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    463, related to articulation agreements, prior to the general
    amendment of this subchapter by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1011e                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011e. Financial responsibility of foreign students

-STATUTE-
      Nothing in this chapter or any other Federal law shall be
    construed to prohibit any institution of higher education from
    requiring a student who is a foreign national (and not admitted to
    permanent residence in the United States) to guarantee the future
    payment of tuition and fees to such institution by - 
        (1) making advance payment of such tuition and fees;
        (2) making deposits in an escrow account administered by such
      institution for such payments; or
        (3) obtaining a bond or other insurance that such payments will
      be made.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 116, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1593.)

-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.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1145c of this title prior to repeal by Pub. L. 105-244.
      A prior section 1011e, Pub. L. 89-329, title I, Sec. 126, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    464, related to State administrative costs, prior to the general
    amendment of this subchapter by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1011f                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011f. Disclosures of foreign gifts

-STATUTE-
    (a) Disclosure report
      Whenever any institution is owned or controlled by a foreign
    source or receives a gift from or enters into a contract with a
    foreign source, the value of which is $250,000 or more, considered
    alone or in combination with all other gifts from or contracts with
    that foreign source within a calendar year, the institution shall
    file a disclosure report with the Secretary on January 31 or July
    31, whichever is sooner.
    (b) Contents of report
      Each report to the Secretary required by this section shall
    contain the following:
        (1) For gifts received from or contracts entered into with a
      foreign source other than a foreign government, the aggregate
      dollar amount of such gifts and contracts attributable to a
      particular country. The country to which a gift is attributable
      is the country of citizenship, or if unknown, the principal
      residence for a foreign source who is a natural person, and the
      country of incorporation, or if unknown, the principal place of
      business, for a foreign source which is a legal entity.
        (2) For gifts received from or contracts entered into with a
      foreign government, the aggregate amount of such gifts and
      contracts received from each foreign government.
        (3) In the case of an institution which is owned or controlled
      by a foreign source, the identity of the foreign source, the date
      on which the foreign source assumed ownership or control, and any
      changes in program or structure resulting from the change in
      ownership or control.
    (c) Additional disclosures for restricted and conditional gifts
      Notwithstanding the provisions of subsection (b) of this section,
    whenever any institution receives a restricted or conditional gift
    or contract from a foreign source, the institution shall disclose
    the following:
        (1) For such gifts received from or contracts entered into with
      a foreign source other than a foreign government, the amount, the
      date, and a description of such conditions or restrictions. The
      report shall also disclose the country of citizenship, or if
      unknown, the principal residence for a foreign source which is a
      natural person, and the country of incorporation, or if unknown,
      the principal place of business for a foreign source which is a
      legal entity.
        (2) For gifts received from or contracts entered into with a
      foreign government, the amount, the date, a description of such
      conditions or restrictions, and the name of the foreign
      government.
    (d) Relation to other reporting requirements
      (1) State requirements
        If an institution described under subsection (a) of this
      section is within a State which has enacted requirements for
      public disclosure of gifts from or contracts with a foreign
      source that are substantially similar to the requirements of this
      section, a copy of the disclosure report filed with the State may
      be filed with the Secretary in lieu of a report required under
      subsection (a) of this section. The State in which the
      institution is located shall provide to the Secretary such
      assurances as the Secretary may require to establish that the
      institution has met the requirements for public disclosure under
      State law if the State report is filed.
      (2) Use of other Federal reports
        If an institution receives a gift from, or enters into a
      contract with, a foreign source, where any other department,
      agency, or bureau of the executive branch requires a report
      containing requirements substantially similar to those required
      under this section, a copy of the report may be filed with the
      Secretary in lieu of a report required under subsection (a) of
      this section.
    (e) Public inspection
      All disclosure reports required by this section shall be public
    records open to inspection and copying during business hours.
    (f) Enforcement
      (1) Court orders
        Whenever it appears that an institution has failed to comply
      with the requirements of this section, including any rule or
      regulation promulgated under this section, a civil action may be
      brought by the Attorney General, at the request of the Secretary,
      in an appropriate district court of the United States, or the
      appropriate United States court of any territory or other place
      subject to the jurisdiction of the United States, to request such
      court to compel compliance with the requirements of this section.
      (2) Costs
        For knowing or willful failure to comply with the requirements
      of this section, including any rule or regulation promulgated
      thereunder, an institution shall pay to the Treasury of the
      United States the full costs to the United States of obtaining
      compliance, including all associated costs of investigation and
      enforcement.
    (g) Regulations
      The Secretary may promulgate regulations to carry out this
    section.
    (h) Definitions
      For the purpose of this section - 
        (1) the term "contract" means any agreement for the acquisition
      by purchase, lease, or barter of property or services by the
      foreign source, for the direct benefit or use of either of the
      parties;
        (2) the term "foreign source" means - 
          (A) a foreign government, including an agency of a foreign
        government;
          (B) a legal entity, governmental or otherwise, created solely
        under the laws of a foreign state or states;
          (C) an individual who is not a citizen or a national of the
        United States or a trust territory or protectorate thereof; and
          (D) an agent, including a subsidiary or affiliate of a
        foreign legal entity, acting on behalf of a foreign source;

        (3) the term "gift" means any gift of money or property;
        (4) the term "institution" means any institution, public or
      private, or, if a multicampus institution, any single campus of
      such institution, in any State, that - 
          (A) is legally authorized within such State to provide a
        program of education beyond secondary school;
          (B) provides a program for which the institution awards a
        bachelor's degree (or provides not less than a 2-year program
        which is acceptable for full credit toward such a degree) or
        more advanced degrees; and
          (C) is accredited by a nationally recognized accrediting
        agency or association and to which institution Federal
        financial assistance is extended (directly or indirectly
        through another entity or person), or which institution
        receives support from the extension of Federal financial
        assistance to any of the institution's subunits; and

        (5) the term "restricted or conditional gift or contract" means
      any endowment, gift, grant, contract, award, present, or property
      of any kind which includes provisions regarding - 
          (A) the employment, assignment, or termination of faculty;
          (B) the establishment of departments, centers, research or
        lecture programs, or new faculty positions;
          (C) the selection or admission of students; or
          (D) the award of grants, loans, scholarships, fellowships, or
        other forms of financial aid restricted to students of a
        specified country, religion, sex, ethnic origin, or political
        opinion.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 117, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1593.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1145d of this title prior to repeal by Pub. L. 105-244.
      A prior section 1011f, Pub. L. 89-329, title I, Sec. 127, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    464, related to priority grant applications, prior to the general
    amendment of this subchapter by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1011g                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011g. Application of peer review process

-STATUTE-
      All applications submitted under the provisions of this chapter
    which require peer review shall be read by a panel of readers
    composed of individuals selected by the Secretary, which shall
    include outside readers who are not employees of the Federal
    Government. The Secretary shall ensure that no individual assigned
    under this section to review any application has any conflict of
    interest with regard to that application which might impair the
    impartiality with which that individual conducts the review under
    this section.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 118, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1595.)

-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.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1145d-1 of this title prior to repeal by Pub. L. 105-244.
      A prior section 1011g, Pub. L. 89-329, title I, Sec. 128, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    464, related to reports and evaluation of programs, prior to the
    general amendment of this subchapter by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1011h                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011h. Binge drinking on college campuses

-STATUTE-
    (a) Short title
      This section may be cited as the "Collegiate Initiative To Reduce
    Binge Drinking and Illegal Alcohol Consumption".
    (b) Sense of Congress
      It is the sense of Congress that, in an effort to change the
    culture of alcohol consumption on college campuses, all
    institutions of higher education should carry out the following:
        (1) The president of the institution should appoint a task
      force consisting of school administrators, faculty, students,
      Greek system representatives, and others to conduct a full
      examination of student and academic life at the institution. The
      task force should make recommendations for a broad range of
      policy and program changes that would serve to reduce alcohol and
      other drug-related problems. The institution should provide
      resources to assist the task force in promoting the campus
      policies and proposed environmental changes that have been
      identified.
        (2) The institution should provide maximum opportunities for
      students to live in an alcohol-free environment and to engage in
      stimulating, alcohol-free recreational and leisure activities.
        (3) The institution should enforce a "zero tolerance" policy on
      the illegal consumption of alcohol by students at the
      institution.
        (4) The institution should vigorously enforce the institution's
      code of disciplinary sanctions for those who violate campus
      alcohol policies. Students with alcohol or other drug-related
      problems should be referred for assistance, including on-campus
      counseling programs if appropriate.
        (5) The institution should adopt a policy to discourage
      alcoholic beverage-related sponsorship of on-campus activities.
      It should adopt policies limiting the advertisement and promotion
      of alcoholic beverages on campus.
        (6) The institution should work with the local community,
      including local businesses, in a "Town/Gown" alliance to
      encourage responsible policies toward alcohol consumption and to
      address illegal alcohol use by students.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 119, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1596.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1011h, Pub. L. 89-329, title I, Sec. 129, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    465, authorized appropriations to carry out the articulation
    agreements grant program, prior to the general amendment of this
    subchapter by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1011i                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011i. Drug and alcohol abuse prevention

-STATUTE-
    (a) Restriction on eligibility
      Notwithstanding any other provision of law, no institution of
    higher education shall be eligible to receive funds or any other
    form of financial assistance under any Federal program, including
    participation in any federally funded or guaranteed student loan
    program, unless the institution certifies to the Secretary that the
    institution has adopted and has implemented a program to prevent
    the use of illicit drugs and the abuse of alcohol by students and
    employees that, at a minimum, includes - 
        (1) the annual distribution to each student and employee of - 
          (A) standards of conduct that clearly prohibit, at a minimum,
        the unlawful possession, use, or distribution of illicit drugs
        and alcohol by students and employees on the institution's
        property or as part of any of the institution's activities;
          (B) a description of the applicable legal sanctions under
        local, State, or Federal law for the unlawful possession or
        distribution of illicit drugs and alcohol;
          (C) a description of the health-risks associated with the use
        of illicit drugs and the abuse of alcohol;
          (D) a description of any drug or alcohol counseling,
        treatment, or rehabilitation or re-entry programs that are
        available to employees or students; and
          (E) a clear statement that the institution will impose
        sanctions on students and employees (consistent with local,
        State, and Federal law), and a description of those sanctions,
        up to and including expulsion or termination of employment and
        referral for prosecution, for violations of the standards of
        conduct required by subparagraph (A); and

        (2) a biennial review by the institution of the institution's
      program to - 
          (A) determine the program's effectiveness and implement
        changes to the program if the changes are needed; and
          (B) ensure that the sanctions required by paragraph (1)(E)
        are consistently enforced.
    (b) Information availability
      Each institution of higher education that provides the
    certification required by subsection (a) of this section shall,
    upon request, make available to the Secretary and to the public a
    copy of each item required by subsection (a)(1) of this section as
    well as the results of the biennial review required by subsection
    (a)(2) of this section.
    (c) Regulations
      (1) In general
        The Secretary shall publish regulations to implement and
      enforce the provisions of this section, including regulations
      that provide for - 
          (A) the periodic review of a representative sample of
        programs required by subsection (a) of this section; and
          (B) a range of responses and sanctions for institutions of
        higher education that fail to implement their programs or to
        consistently enforce their sanctions, including information and
        technical assistance, the development of a compliance
        agreement, and the termination of any form of Federal financial
        assistance.
      (2) Rehabilitation program
        The sanctions required by subsection (a)(1)(E) of this section
      may include the completion of an appropriate rehabilitation
      program.
    (d) Appeals
      Upon determination by the Secretary to terminate financial
    assistance to any institution of higher education under this
    section, the institution may file an appeal with an administrative
    law judge before the expiration of the 30-day period beginning on
    the date such institution is notified of the decision to terminate
    financial assistance under this section. Such judge shall hold a
    hearing with respect to such termination of assistance before the
    expiration of the 45-day period beginning on the date that such
    appeal is filed. Such judge may extend such 45-day period upon a
    motion by the institution concerned. The decision of the judge with
    respect to such termination shall be considered to be a final
    agency action.
    (e) Alcohol and drug abuse prevention grants
      (1) Program authority
        The Secretary may make grants to institutions of higher
      education or consortia of such institutions, and enter into
      contracts with such institutions, consortia, and other
      organizations, to develop, implement, operate, improve, and
      disseminate programs of prevention, and education (including
      treatment-referral) to reduce and eliminate the illegal use of
      drugs and alcohol and the violence associated with such use. Such
      grants or contracts may also be used for the support of a higher
      education center for alcohol and drug abuse prevention that will
      provide training, technical assistance, evaluation,
      dissemination, and associated services and assistance to the
      higher education community as determined by the Secretary and
      institutions of higher education.
      (2) Awards
        Grants and contracts shall be awarded under paragraph (1) on a
      competitive basis.
      (3) Applications
        An institution of higher education, a consortium of such
      institutions, or another organization that desires to receive a
      grant or contract under paragraph (1) shall submit an application
      to the Secretary at such time, in such manner, and containing or
      accompanied by such information as the Secretary may reasonably
      require by regulation.
      (4) Additional requirements
        (A) Participation
          In awarding grants and contracts under this subsection the
        Secretary shall make every effort to ensure - 
            (i) the equitable participation of private and public
          institutions of higher education (including community and
          junior colleges); and
            (ii) the equitable geographic participation of such
          institutions.
        (B) Consideration
          In awarding grants and contracts under this subsection the
        Secretary shall give appropriate consideration to institutions
        of higher education with limited enrollment.
      (5) Authorization of appropriations
        There are authorized to be appropriated to carry out this
      subsection $5,000,000 for fiscal year 1999 and such sums as may
      be necessary for each of the 4 succeeding fiscal years.
    (f) National Recognition Awards
      (1) Purpose
        It is the purpose of this subsection to provide models of
      innovative and effective alcohol and drug abuse prevention
      programs in higher education and to focus national attention on
      exemplary alcohol and drug abuse prevention efforts.
      (2) Awards
        (A) In general
          The Secretary shall make 5 National Recognition Awards for
        outstanding alcohol prevention programs and 5 National
        Recognition Awards for outstanding drug abuse prevention
        programs, on an annual basis, to institutions of higher
        education that - 
            (i) have developed and implemented innovative and effective
          alcohol prevention programs or drug abuse prevention
          programs; and
            (ii) with respect to an application for an alcohol
          prevention program award, demonstrate in the application
          submitted under paragraph (3) that the institution has
          undertaken efforts designed to change the culture of college
          drinking consistent with the review criteria described in
          paragraph (3)(C)(iii).
        (B) Ceremony
          The awards shall be made at a ceremony in Washington, D.C.
        (C) Document
          The Secretary shall publish a document describing the alcohol
        and drug abuse prevention programs of institutions of higher
        education that receive the awards under this subsection and
        disseminate the document nationally to all public and private
        secondary school guidance counselors for use by secondary
        school juniors and seniors preparing to enter an institution of
        higher education. The document shall be disseminated not later
        than January 1 of each academic year.
        (D) Amount and use
          Each institution of higher education selected to receive an
        award under this subsection shall receive an award in the
        amount of $50,000. Such award shall be used for the maintenance
        and improvement of the institution's outstanding prevention
        program for the academic year following the academic year for
        which the award is made.
      (3) Application
        (A) In general
          Each institution of higher education desiring an award under
        this subsection shall submit an application to the Secretary at
        such time, in such manner, and accompanied by such information
        as the Secretary may require. Each such application shall
        contain - 
            (i) a clear description of the goals and objectives of the
          prevention program of the institution;
            (ii) a description of program activities that focus on
          alcohol or drug policy issues, policy development,
          modification, or refinement, policy dissemination and
          implementation, and policy enforcement;
            (iii) a description of activities that encourage student
          and employee participation and involvement in activity
          development and implementation;
            (iv) the objective criteria used to determine the
          effectiveness of the methods used in such programs and the
          means used to evaluate and improve the programs' efforts;
            (v) a description of special initiatives used to reduce
          high-risk behavior or increase low-risk behavior; and
            (vi) a description of coordination and networking efforts
          that exist in the community in which the institution is
          located for purposes of such programs.
        (B) Application review
          The Secretary shall appoint a committee to review
        applications submitted under this paragraph. The committee may
        include representatives of Federal departments or agencies the
        programs of which include alcohol abuse prevention and
        education efforts and drug abuse prevention and education
        efforts, directors or heads (or their representatives) of
        professional associations that focus on alcohol and drug abuse
        prevention efforts, and non-Federal scientists who have
        backgrounds in social science evaluation and research
        methodology and in education. Decisions of the committee shall
        be made directly to the Secretary without review by any other
        entity in the Department.
        (C) Review criteria
          The committee described in subparagraph (B) shall develop
        specific review criteria for reviewing and evaluating
        applications submitted under this paragraph. The review
        criteria shall include - 
            (i) measures of the effectiveness of the program of the
          institution, that includes changes in the campus alcohol or
          other drug environment or the climate and changes in alcohol
          or other drug use before and after the initiation of the
          program;
            (ii) measures of program institutionalization, including - 
              (I) an assessment of needs of the institution;
              (II) the institution's alcohol and drug policies, staff
            and faculty development activities, drug prevention
            criteria, student, faculty, and campus community
            involvement; and
              (III) whether the program will be continued after the
            cessation of Federal funding; and

            (iii) with respect to an application for an alcohol
          prevention program award, criteria for determining whether
          the institution has policies in effect that - 
              (I) prohibit alcoholic beverage sponsorship of athletic
            events, and prohibit alcoholic beverage advertising inside
            athletic facilities;
              (II) prohibit alcoholic beverage marketing on campus,
            which may include efforts to ban alcohol advertising in
            institutional publications or efforts to prohibit alcohol-
            related advertisements at campus events;
              (III) establish or expand upon alcohol-free living
            arrangements for all college students;
              (IV) establish partnerships with community members and
            organizations to further alcohol prevention efforts on
            campus and the areas surrounding campus; and
              (V) establish innovative communications programs
            involving students and faculty in an effort to educate
            students about alcohol-related risks.
      (4) Eligibility
        In order to be eligible to receive a National Recognition Award
      an institution of higher education shall - 
          (A) offer an associate or baccalaureate degree;
          (B) have established an alcohol abuse prevention and
        education program or a drug abuse prevention and education
        program;
          (C) nominate itself or be nominated by others, such as
        professional associations or student organizations, to receive
        the award; and
          (D) not have received an award under this subsection during
        the 5 academic years preceding the academic year for which the
        determination is made.
      (5) Authorization of appropriations
        (A) In general
          There is authorized to be appropriated to carry out this
        subsection $750,000 for fiscal year 1999.
        (B) Availability
          Funds appropriated under subparagraph (A) shall remain
        available until expended.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 120, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1596.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to subsecs. (a) to (d) of this section were
    contained in section 1145g of this title prior to repeal by Pub. L.
    105-244.

-End-



-CITE-
    20 USC Sec. 1011j                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011j. Prior rights and obligations

-STATUTE-
    (a) Authorization of appropriations
      (1) Pre-1987 parts C and D of subchapter VII
        There are authorized to be appropriated such sums as may be
      necessary for fiscal year 1999 and for each of the 4 succeeding
      fiscal years to pay obligations incurred prior to 1987 under
      parts C and D of subchapter VII of this chapter, as such parts
      were in effect before the effective date of the Higher Education
      Amendments of 1992.
      (2) Post-1992 and pre-1998 part C of subchapter VII
        There are authorized to be appropriated such sums as may be
      necessary for fiscal year 1999 and for each of the 4 succeeding
      fiscal years to pay obligations incurred prior to October 7,
      1998, under part C of subchapter VII of this chapter, as such
      part was in effect during the period - 
          (A) after the effective date of the Higher Education
        Amendments of 1992; and
          (B) prior to October 7, 1998.
    (b) Legal responsibilities
      (1) Pre-1987 subchapter VII
        All entities with continuing obligations incurred under parts
      A, B, C, and D of subchapter VII of this chapter, as such parts
      were in effect before the effective date of the Higher Education
      Amendments of 1992, shall be subject to the requirements of such
      part as in effect before the effective date of the Higher
      Education Amendments of 1992.
      (2) Post-1992 and pre-1998 part C of subchapter VII
        All entities with continuing obligations incurred under part C
      of subchapter VII of this chapter, as such part was in effect
      during the period - 
          (A) after the effective date of the Higher Education
        Amendments of 1992; and
          (B) prior to October 7, 1998,

      shall be subject to the requirements of such part as such part
      was in effect during such period.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 121, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1601.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Parts A, B, C, and D of subchapter VII of this chapter, as such
    parts were in effect before the effective date of the Higher
    Education Amendments of 1992, referred to in subsecs. (a)(1) and
    (b)(1), means parts A (Sec. 1132b et seq.), B (Sec. 1132c et seq.),
    C (Sec. 1132d et seq.), and D (Sec. 1132e et seq.) of subchapter
    VII of this chapter, as in effect before the effective date of Pub.
    L. 102-325. For effective date of Pub. L. 102-325, see section 2 of
    Pub. L. 102-325, set out as an Effective Date of 1992 Amendment
    note under section 1001 of this title. Pub. L. 102-325, title VII,
    Secs. 703-707(a), July 23, 1992, 106 Stat. 738-753, amended
    subchapter VII of this chapter effective Oct. 1, 1992, by amending
    parts A to C generally, repealing part D, and redesignating former
    part E as D.
      Part C of subchapter VII of this chapter, as such part was in
    effect during the period after the effective date of the Higher
    Education Amendments of 1992 and prior to October 7, 1998, referred
    to in subsecs. (a)(2) and (b)(2), probably means part C (Sec. 1132d
    et seq.) of subchapter VII of this chapter, as in effect during the
    period after the effective date of Pub. L. 102-325 and before it
    was amended by Pub. L. 105-244. For effective date of Pub. L. 102-
    325, see section 2 of Pub. L. 102-325, set out as an Effective
    Date of 1992 Amendment note under section 1001 of this title. Pub.
    L. 105-244, title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1786,
    amended subchapter VII of this chapter generally, effective Oct. 1,
    1998, omitting part C which related to loans for construction,
    reconstruction, and renovation of academic housing, and other
    educational facilities and adding a new part C (Sec. 1139 et seq.)
    relating to urban community service.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1132a-1 of this title prior to the general amendment of subchapter
    VII of this chapter by Pub. L. 105-244.
      A prior section 121 of Pub. L. 89-329, title I, as added Pub. L.
    99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat. 1285, related
    to adult learning research and was classified to section 1016 of
    this title, prior to the general amendment of this subchapter by
    Pub. L. 102-325.

-End-



-CITE-
    20 USC Sec. 1011k                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part B - Additional General Provisions

-HEAD-
    Sec. 1011k. Recovery of payments

-STATUTE-
    (a) Public benefit
      Congress declares that, if a facility constructed with the aid of
    a grant under part A of subchapter VII of this chapter as such part
    A was in effect prior to October 7, 1998, or part B of such
    subchapter as part B was in effect prior to July 23, 1992, is used
    as an academic facility for 20 years following completion of such
    construction, the public benefit accruing to the United States will
    equal in value the amount of the grant. The period of 20 years
    after completion of such construction shall therefore be deemed to
    be the period of Federal interest in such facility for the purposes
    of such subchapter as so in effect.
    (b) Recovery upon cessation of public benefit
      If, within 20 years after completion of construction of an
    academic facility which has been constructed, in part with a grant
    under part A of subchapter VII of this chapter as such part A was
    in effect prior to October 7, 1998, or part B of subchapter VII of
    this chapter as such part B was in effect prior to July 23, 1992 - 
        (1) the applicant under such parts as so in effect (or the
      applicant's successor in title or possession) ceases or fails to
      be a public or nonprofit institution; or
        (2) the facility ceases to be used as an academic facility, or
      the facility is used as a facility excluded from the term
      "academic facility" (as such term was defined under subchapter
      VII of this chapter, as so in effect), unless the Secretary
      determines that there is good cause for releasing the institution
      from its obligation,

    the United States shall be entitled to recover from such applicant
    (or successor) an amount which bears to the value of the facility
    at that time (or so much thereof as constituted an approved project
    or projects) the same ratio as the amount of Federal grant bore to
    the cost of the facility financed with the aid of such grant. The
    value shall be determined by agreement of the parties or by action
    brought in the United States district court for the district in
    which such facility is situated.
    (c) Prohibition on use for religion
      Notwithstanding the provisions of subsections (a) and (b) of this
    section, no project assisted with funds under subchapter VII of
    this chapter (as in effect prior to October 7, 1998) shall ever be
    used for religious worship or a sectarian activity or for a school
    or department of divinity.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 122, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1601.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Subchapter VII of this chapter, referred to in text, was amended,
    effective Oct. 1, 1992, by Pub. L. 102-325, title VII, Secs. 703-
    707(a), July 23, 1992, 106 Stat. 738-753, by amending parts A to C
    generally, repealing part D, and redesignating former part E as D,
    and was further amended generally, effective Oct. 1, 1998, by Pub.
    L. 105-244, title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1786, by
    substituting provisions relating to graduate and post-secondary
    improvement programs for former provisions relating to
    construction, reconstruction, and renovation of academic
    facilities.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1132i of this title prior to the general amendment of subchapter
    VII of this chapter by Pub. L. 105-244.
      A prior section 122 of Pub. L. 89-329, title I, as added Pub. L.
    99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat. 1286, limited
    funds authorized to be appropriated and was classified to section
    1016a of this title, prior to the general amendment of this
    subchapter by Pub. L. 102-325.
      A prior section 1012, Pub. L. 89-329, title I, Sec. 112, as added
    Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat. 1282,
    related to establishment of off-campus program grants, prior to the
    general amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1012, Pub. L. 89-329, title I, Sec. 112, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1377, provided for State allotments including percentage breakdown
    and cases of States not conducting comprehensive statewide
    planning, prior to the general amendment of this subchapter by Pub.
    L. 99-498.
      A prior section 1013, Pub. L. 89-329, title I, Sec. 113, as added
    Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat. 1284,
    related to adult and continuing education staff development, prior
    to the general amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1013, Pub. L. 89-329, title I, Sec. 113, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1378; amended Pub. L. 97-300, title I, Sec. 183, Oct. 13, 1982, 96
    Stat. 1357; Pub. L. 98-524, Sec. 4(c)(1), Oct. 19, 1984, 98 Stat.
    2488, related to comprehensive statewide planning with respect to
    education outreach programs, prior to the general amendment of this
    subchapter by Pub. L. 99-498.
      A prior section 1014, Pub. L. 89-329, title I, Sec. 114, as added
    Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat. 1285,
    related to administration of programs by Secretary, prior to the
    general amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1014, Pub. L. 89-329, title I, Sec. 114, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1379; amended Pub. L. 97-300, title I, Sec. 183, Oct. 13, 1982, 96
    Stat. 1357; Pub. L. 98-524, Sec. 4(c)(2), Oct. 19, 1984, 98 Stat.
    2488, related to information services, prior to the general
    amendment of this subchapter by Pub. L. 99-498.

-End-


-CITE-
    20 USC Part C - Cost of Higher Education                    01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part C - Cost of Higher Education

-HEAD-
                     PART C - COST OF HIGHER EDUCATION                 

-End-



-CITE-
    20 USC Sec. 1015                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part C - Cost of Higher Education

-HEAD-
    Sec. 1015. Improvements in market information and public
      accountability in higher education

-STATUTE-
    (a) Improved data collection
      (1) Development of uniform methodology
        The Secretary shall direct the Commissioner of Education
      Statistics to convene a series of forums to develop nationally
      consistent methodologies for reporting costs incurred by
      postsecondary institutions in providing postsecondary education.
      (2) Redesign of data systems
        On the basis of the methodologies developed pursuant to
      paragraph (1), the Secretary shall redesign relevant parts of the
      postsecondary education data systems to improve the usefulness
      and timeliness of the data collected by such systems.
      (3) Information to institutions
        The Commissioner of Education Statistics shall - 
          (A) develop a standard definition for the following data
        elements:
            (i) tuition and fees for a full-time undergraduate student;
            (ii) cost of attendance for a full-time undergraduate
          student, consistent with the provisions of section 1087ll of
          this title;
            (iii) average amount of financial assistance received by an
          undergraduate student who attends an institution of higher
          education, including - 
              (I) each type of assistance or benefit described in
            section 1078(a)(2)(C)(i) (!1) of this title;

              (II) fellowships; and
              (III) institutional and other assistance; and

            (iv) number of students receiving financial assistance
          described in each of subclauses (I), (II), and (III) of
          clause (iii);

          (B) not later than 90 days after October 7, 1998, report the
        definitions to each institution of higher education and within
        a reasonable period of time thereafter inform the Committee on
        Labor and Human Resources of the Senate and the Committee on
        Education and the Workforce of the House of Representatives of
        those definitions; and
          (C) collect information regarding the data elements described
        in subparagraph (A) with respect to at least all institutions
        of higher education participating in programs under subchapter
        IV of this chapter and part C of subchapter I of chapter 34 of
        title 42, beginning with the information from academic year
        2000-2001 and annually thereafter.
    (b) Data dissemination
      The Secretary shall make available the data collected pursuant to
    subsection (a) of this section. Such data shall be available in a
    form that permits the review and comparison of the data submissions
    of individual institutions of higher education. Such data shall be
    presented in a form that is easily understandable and allows
    parents and students to make informed decisions based on the costs
    for typical full-time undergraduate students.
    (c) Study
      (1) In general
        The Commissioner of Education Statistics shall conduct a
      national study of expenditures at institutions of higher
      education. Such study shall include information with respect to -
      
          (A) the change in tuition and fees compared with the consumer
        price index and other appropriate measures of inflation;
          (B) faculty salaries and benefits;
          (C) administrative salaries, benefits and expenses;
          (D) academic support services;
          (E) research;
          (F) operations and maintenance; and
          (G) institutional expenditures for construction and
        technology and the potential cost of replacing instructional
        buildings and equipment.
      (2) Evaluation
        The study shall include an evaluation of - 
          (A) changes over time in the expenditures identified in
        paragraph (1);
          (B) the relationship of the expenditures identified in
        paragraph (1) to college costs; and
          (C) the extent to which increases in institutional financial
        aid and tuition discounting practices affect tuition increases,
        including the demographics of students receiving such
        discounts, the extent to which financial aid is provided to
        students with limited need in order to attract a student to a
        particular institution, and the extent to which Federal
        financial aid, including loan aid, has been used to offset the
        costs of such practices.
      (3) Final report
        The Commissioner of Education Statistics shall submit a report
      regarding the findings of the study required by paragraph (1) to
      the appropriate committees of Congress not later than September
      30, 2002.
      (4) Higher education market basket
        The Bureau of Labor Statistics, in consultation with the
      Commissioner of Education Statistics, shall develop a higher
      education market basket that identifies the items that comprise
      the costs of higher education. The Bureau of Labor Statistics
      shall provide a report on the market basket to the Committee on
      Labor and Human Resources of the Senate and the Committee on
      Education and the Workforce of the House of Representatives not
      later than September 30, 2002.
      (5) Fines
        In addition to actions authorized in section 1094(c) of this
      title, the Secretary may impose a fine in an amount not to exceed
      $25,000 on an institution of higher education for failing to
      provide the information described in paragraph (1) in a timely
      and accurate manner, or for failing to otherwise cooperate with
      the National Center for Education Statistics regarding efforts to
      obtain data on the cost of higher education under this section
      and pursuant to the program participation agreement entered into
      under section 1094 of this title.
    (d) Student aid recipient survey
      (1) The Secretary shall survey student aid recipients on a
    regular cycle, but not less than once every 3 years - 
        (A) to identify the population of students receiving Federal
      student aid;
        (B) to determine the income distribution and other
      socioeconomic characteristics of federally aided students;
        (C) to describe the combinations of aid from State, Federal,
      and private sources received by students from all income groups;
        (D) to describe the debt burden of loan recipients and their
      capacity to repay their education debts; and
        (E) to disseminate such information in both published and
      machine readable form.

      (2) The survey shall be representative of full-time and part-
    time, undergraduate, graduate, and professional and current and
    former students in all types of institutions, and should be
    designed and administered in consultation with the Congress and the
    postsecondary education community.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 131, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1602.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1078(a)(2)(C) of this title, referred to in subsec.
    (a)(3)(A)(iii)(I), was amended generally by Pub. L. 105-244, title
    IV, Sec. 417(a)(1)(C), Oct. 7, 1998, 112 Stat. 1682, and, as so
    amended, provisions formerly appearing in cl. (i) are now contained
    in cl. (ii).


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1015, Pub. L. 89-329, title I, Sec. 131, as added
    Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat. 465,
    authorized grants to eligible partnerships for education
    telecommunications activities, prior to the general amendment of
    this subchapter by Pub. L. 105-244.
      Another prior section 1015, Pub. L. 89-329, title I, Sec. 115, as
    added Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat.
    1285, authorized appropriations for former part A of this
    subchapter, prior to the general amendment of this subchapter by
    Pub. L. 102-325.
      Another prior section 1015, Pub. L. 89-329, title I, Sec. 115, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1380, related to continuing education, prior to the general
    amendment of this subchapter by Pub. L. 99-498.
      Another prior section 1015, Pub. L. 89-329, title I, Sec. 131, as
    added Pub. L. 94-482, title I, Sec. 101(g)(3), Oct. 12, 1976, 90
    Stat. 2086, set out the Congressional findings with regard to the
    lifelong learning program, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      A prior section 131 of Pub. L. 89-329, title I, as added Pub. L.
    99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat. 1286, related
    to National Advisory Council on Continuing Education and was
    classified to section 1017 of this title, prior to the general
    amendment of this subchapter by Pub. L. 102-325.
      A prior section 1015a, Pub. L. 89-329, title I, Sec. 132, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    465, related to grant applications, prior to the general amendment
    of this subchapter by Pub. L. 105-244.
      Another prior section 1015a, Pub. L. 89-329, title I, Sec. 132,
    as added Pub. L. 94-482, title I, Sec. 101(g)(3), Oct. 12, 1976, 90
    Stat. 2087, set out scope of lifelong learning program, prior to
    the general amendment of this subchapter by Pub. L. 96-374.
      A prior section 1015b, Pub. L. 89-329, title I, Sec. 133, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    466, related to activities for which grants could be used, prior to
    the general amendment of this subchapter by Pub. L. 105-244.
      Another prior section 1015b, Pub. L. 89-329, title I, Sec. 133,
    as added Pub. L. 94-482, title I, Sec. 101(g)(3), Oct. 12, 1976, 90
    Stat. 2087; amended Pub. L. 95-43, Sec. 1(a)(4), June 15, 1977, 91
    Stat. 213, related to implementation of lifelong learning program
    by Assistant Secretary, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      A prior section 1015c, Pub. L. 89-329, title I, Sec. 134, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    466, defined "public broadcasting entity" for purposes of former
    part C of this subchapter, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 1015c, Pub. L. 89-329, title I, Sec. 134,
    as added Pub. L. 94-482, title I, Sec. 101(g)(3), Oct. 12, 1976, 90
    Stat. 2089, related to annual reports by Assistant Secretary and
    content of these reports, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      A prior section 1015d, Pub. L. 89-329, title I, Sec. 135, as
    added Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat.
    466, required grant recipients to submit reports, prior to the
    general amendment of this subchapter by Pub. L. 105-244.
      A prior section 1016, Pub. L. 89-329, title I, Sec. 121, as added
    Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat. 1285,
    related to adult learning research, prior to the general amendment
    of this subchapter by Pub. L. 102-325.
      Another prior section 1016, Pub. L. 89-329, title I, Sec. 116, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1381, provided for Federal discretionary grants, prior to the
    general amendment of this subchapter by Pub. L. 99-498.
      A prior section 1016a, Pub. L. 89-329, title I, Sec. 122, as
    added Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat.
    1286, limited funds authorized to be appropriated, prior to the
    general amendment of this subchapter by Pub. L. 102-325.
      A prior section 1017, Pub. L. 89-329, title I, Sec. 131, as added
    Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat. 1286;
    Pub. L. 102-54, Sec. 13(g)(1)(A), June 13, 1991, 105 Stat. 275,
    related to National Advisory Council on Continuing Education, prior
    to the general amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1017, Pub. L. 89-329, title I, Sec. 117, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1382; amended Pub. L. 99-386, title I, Sec. 103(a), Aug. 22, 1986,
    100 Stat. 821, related to establishment and administration of the
    National Advisory Council on Continuing Education, prior to the
    general amendment of this subchapter by Pub. L. 99-498.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                    STUDENT RELATED DEBT STUDY REQUIRED                
      Pub. L. 105-244, title VIII, Sec. 803, Oct. 7, 1998, 112 Stat.
    1805, provided that:
      "(a) In General. - The Secretary of Education shall conduct a
    study that analyzes the distribution and increase in student-
    related debt in terms of - 
        "(1) demographic characteristics, such as race or ethnicity,
      and family income;
        "(2) type of institution and whether the institution is a
      public or private institution;
        "(3) loan source, such as Federal, State, institutional or
      other, and, if the loan source is Federal, whether the loan is or
      is not subsidized;
        "(4) academic field of study;
        "(5) parent loans, and whether the parent loans are federally
      guaranteed, private, or property-secured such as home equity
      loans; and
        "(6) relation of student debt or anticipated debt to - 
          "(A) students' decisions about whether and where to enroll in
        college and whether or how much to borrow in order to attend
        college;
          "(B) the length of time it takes students to earn
        baccalaureate degrees;
          "(C) students' decisions about whether and where to attend
        graduate school;
          "(D) graduates' employment decisions;
          "(E) graduates' burden of repayment as reflected by the
        graduates' ability to save for retirement or invest in a home;
        and
          "(F) students' future earnings.
      "(b) Report. - After conclusion of the study required by
    subsection (a), the Secretary of Education shall submit a final
    report regarding the findings of the study to the Committee on
    Labor and Human Resources [now Committee on Health, Education,
    Labor, and Pensions] of the Senate and the Committee on Education
    and the Workforce of the House of Representatives not later than 18
    months after the date of enactment of the Higher Education
    Amendments of 1998 [Oct. 7, 1998].
      "(c) Information. - After the study and report under this section
    are concluded, the Secretary of Education shall determine which
    information described in subsection (a) would be useful for
    families to know and shall include such information as part of the
    comparative information provided to families about the costs of
    higher education under the provisions of part C of title I
    [probably means part C of title I of Pub. L. 89-329, which is
    classified generally to this part]."

-FOOTNOTE-
    (!1) See References in Text note below.


-End-


-CITE-
    20 USC Part D - Administrative Provisions for Delivery of
                     Student Financial Assistance          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part D - Administrative Provisions for Delivery of Student Financial
              Assistance                              

-HEAD-
        PART D - ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT
                           FINANCIAL ASSISTANCE

-End-



-CITE-
    20 USC Sec. 1018                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part D - Administrative Provisions for Delivery of Student Financial
              Assistance                              

-HEAD-
    Sec. 1018. Performance-Based Organization for delivery of Federal
      student financial assistance

-STATUTE-
    (a) Establishment and purpose
      (1) Establishment
        There is established in the Department a Performance-Based
      Organization (hereafter referred to as the "PBO") which shall be
      a discrete management unit responsible for managing the
      operational functions supporting the programs authorized under
      subchapter IV of this chapter and part C of subchapter I of
      chapter 34 of title 42, as specified in subsection (b) of this
      section.
      (2) Purposes
        The purposes of the PBO are - 
          (A) to improve service to students and other participants in
        the student financial assistance programs authorized under
        subchapter IV of this chapter and part C of subchapter I of
        chapter 34 of title 42, including making those programs more
        understandable to students and their parents;
          (B) to reduce the costs of administering those programs;
          (C) to increase the accountability of the officials
        responsible for administering the operational aspects of these
        programs;
          (D) to provide greater flexibility in the management of the
        operational functions of the Federal student financial
        assistance programs;
          (E) to integrate the information systems supporting the
        Federal student financial assistance programs;
          (F) to implement an open, common, integrated system for the
        delivery of student financial assistance under subchapter IV of
        this chapter and part C of subchapter I of chapter 34 of title
        42; and
          (G) to develop and maintain a student financial assistance
        system that contains complete, accurate, and timely data to
        ensure program integrity.
    (b) General authority
      (1) Authority of Secretary
        Notwithstanding any other provision of this part, the Secretary
      shall maintain responsibility for the development and
      promulgation of policy and regulations relating to the programs
      of student financial assistance under subchapter IV of this
      chapter and part C of subchapter I of chapter 34 of title 42. In
      the exercise of its functions, the PBO shall be subject to the
      direction of the Secretary. The Secretary shall - 
          (A) request the advice of, and work in cooperation with, the
        Chief Operating Officer in developing regulations, policies,
        administrative guidance, or procedures affecting the
        information systems administered by the PBO, and other
        functions performed by the PBO;
          (B) request cost estimates from the Chief Operating Officer
        for system changes required by specific policies proposed by
        the Secretary; and
          (C) assist the Chief Operating Officer in identifying goals
        for the administration and modernization of the delivery system
        for student financial assistance under subchapter IV of this
        chapter and part C of subchapter I of chapter 34 of title 42.
      (2) PBO functions
        Subject to paragraph (1), the PBO shall be responsible for
      administration of the information and financial systems that
      support student financial assistance programs authorized under
      this subchapter, excluding the development of policy relating to
      such programs but including the following:
          (A) The administrative, accounting, and financial management
        functions of the delivery system for Federal student
        assistance, including - 
            (i) the collection, processing and transmission of
          applicant data to students, institutions and authorized third
          parties, as provided for in section 1090 of this title;
            (ii) design and technical specifications for software
          development and systems supporting the delivery of student
          financial assistance under subchapter IV of this chapter and
          part C of subchapter I of chapter 34 of title 42;
            (iii) all software and hardware acquisitions and all
          information technology contracts related to the delivery and
          management of student financial assistance under subchapter
          IV of this chapter and part C of subchapter I of chapter 34
          of title 42;
            (iv) all aspects of contracting for the information and
          financial systems supporting student financial assistance
          programs under this subchapter; and
            (v) providing all customer service, training, and user
          support related to systems that support those programs.

          (B) Annual development of a budget for the operations and
        services of the PBO, in consultation with the Secretary, and
        for consideration and inclusion in the Department's annual
        budget submission.
      (3) Additional functions
        The Secretary may allocate to the PBO such additional functions
      as the Secretary and the Chief Operating Officer determine are
      necessary or appropriate to achieve the purposes of the PBO.
      (4) Independence
        Subject to paragraph (1), in carrying out its functions, the
      PBO shall exercise independent control of its budget allocations
      and expenditures, personnel decisions and processes,
      procurements, and other administrative and management functions.
      (5) Audits and review
        The PBO shall be subject to the usual and customary Federal
      audit procedures and to review by the Inspector General of the
      Department.
      (6) Changes
        (A) In general
          The Secretary and the Chief Operating Officer shall consult
        concerning the effects of policy, market, or other changes on
        the ability of the PBO to achieve the goals and objectives
        established in the performance plan described in subsection (c)
        of this section.
        (B) Revisions to agreement
          The Secretary and the Chief Operating Officer may revise the
        annual performance agreement described in subsection (d)(4) of
        this section in light of policy, market, or other changes that
        occur after the Secretary and the Chief Operating Officer enter
        into the agreement.
    (c) Performance plan and report
      (1) Performance plan
        (A) In general
          Each year, the Secretary and Chief Operating Officer shall
        agree on, and make available to the public, a performance plan
        for the PBO for the succeeding 5 years that establishes
        measurable goals and objectives for the organization.
        (B) Consultation
          In developing the 5-year performance plan and any revision to
        the plan, the Secretary and the Chief Operating Officer shall
        consult with students, institutions of higher education,
        Congress, lenders, the Advisory Committee on Student Financial
        Assistance, and other interested parties not less than 30 days
        prior to the implementation of the performance plan or
        revision.
        (C) Areas
          The plan shall include a concise statement of the goals for a
        modernized system for the delivery of student financial
        assistance under subchapter IV of this chapter and part C of
        subchapter I of chapter 34 of title 42 and identify action
        steps necessary to achieve such goals. The plan shall address
        the PBO's responsibilities in the following areas:
          (i) Improving service
            Improving service to students and other participants in
          student financial aid programs authorized under this
          subchapter, including making those programs more
          understandable to students and their parents.
          (ii) Reducing costs
            Reducing the costs of administering those programs.
          (iii) Improvement and integration of support systems
            Improving and integrating the information and delivery
          systems that support those programs.
          (iv) Delivery and information system
            Developing an open, common, and integrated delivery and
          information system for programs authorized under this
          subchapter.
          (v) Other areas
            Any other areas identified by the Secretary.
      (2) Annual report
        Each year, the Chief Operating Officer shall prepare and submit
      to Congress, through the Secretary, an annual report on the
      performance of the PBO, including an evaluation of the extent to
      which the PBO met the goals and objectives contained in the 5-
      year performance plan described in paragraph (1) for the
      preceding year. The annual report shall include the following:
          (A) An independent financial audit of the expenditures of
        both the PBO and programs administered by the PBO.
          (B) Financial and performance requirements applicable to the
        PBO under the Chief Financial Officer Act of 1990 and the
        Government Performance and Results Act of 1993.
          (C) The results achieved by the PBO during the year relative
        to the goals established in the organization's performance
        plan.
          (D) The evaluation rating of the performance of the Chief
        Operating Officer and senior managers under subsections (d)(4)
        and (e)(2) of this section, including the amounts of bonus
        compensation awarded to these individuals.
          (E) Recommendations for legislative and regulatory changes to
        improve service to students and their families, and to improve
        program efficiency and integrity.
          (F) Other such information as the Director of the Office of
        Management and Budget shall prescribe for performance based
        organizations.
      (3) Consultation with stakeholders
        The Chief Operating Officer, in preparing the report described
      in paragraph (2), shall establish appropriate means to consult
      with borrowers, institutions, lenders, guaranty agencies,
      secondary markets, and others involved in the delivery system of
      student aid under this subchapter - 
          (A) regarding the degree of satisfaction with the delivery
        system; and
          (B) to seek suggestions on means to improve the delivery
        system.
    (d) Chief Operating Officer
      (1) Appointment
        The management of the PBO shall be vested in a Chief Operating
      Officer who shall be appointed by the Secretary to a term of not
      less than 3 and not more than 5 years, and compensated without
      regard to chapters 33, 51, and 53 of title 5. The Secretary shall
      appoint the Chief Operating Officer within 6 months after October
      7, 1998. The appointment shall be made on the basis of
      demonstrated management ability and expertise in information
      technology, including experience with financial systems, and
      without regard to political affiliation or activity.
      (2) Reappointment
        The Secretary may reappoint the Chief Operating Officer to
      subsequent terms of not less than 3 and not more than 5 years, so
      long as the performance of the Chief Operating Officer, as set
      forth in the performance agreement described in paragraph (4), is
      satisfactory.
      (3) Removal
        The Chief Operating Officer may be removed by - 
          (A) the President; or
          (B) the Secretary, for misconduct or failure to meet
        performance goals set forth in the performance agreement in
        paragraph (4).

      The President or Secretary shall communicate the reasons for any
      such removal to the appropriate committees of Congress.
      (4) Performance agreement
        (A) In general
          Each year, the Secretary and the Chief Operating Officer
        shall enter into an annual performance agreement, that shall
        set forth measurable organization and individual goals for the
        Chief Operating Officer.
        (B) Transmittal
          The final agreement, and any revision to the final agreement,
        shall be transmitted to the Committee on Education and the
        Workforce of the House of Representatives and the Committee on
        Labor and Human Resources of the Senate, and made publicly
        available.
      (5) Compensation
        (A) In general
          The Chief Operating Officer is authorized to be paid at an
        annual rate of basic pay not to exceed the maximum rate of
        basic pay for the Senior Executive Service under section 5382
        of title 5, including any applicable locality-based
        comparability payment that may be authorized under section
        5304(h)(2)(B) of such title. The compensation of the Chief
        Operating Officer shall be considered for purposes of section
        207(c)(2)(A) of title 18 to be the equivalent of that described
        under clause (ii) of section 207(c)(2)(A) of such title.
        (B) Bonus
          In addition, the Chief Operating Officer may receive a bonus
        in an amount that does not exceed 50 percent of such annual
        rate of basic pay, based upon the Secretary's evaluation of the
        Chief Operating Officer's performance in relation to the goals
        set forth in the performance agreement described in paragraph
        (2).(!1)

        (C) Payment
          Payment of a bonus under this (!2) subparagraph (B) may be
        made to the Chief Operating Officer only to the extent that
        such payment does not cause the Chief Operating Officer's total
        aggregate compensation in a calendar year to equal or exceed
        the amount of the President's salary under section 102 of title
        3.

    (e) Senior management
      (1) Appointment
        (A) In general
          The Chief Operating Officer may appoint such senior managers
        as that officer determines necessary without regard to the
        provisions of title 5 governing appointments in the competitive
        service.
        (B) Compensation
          The senior managers described in subparagraph (A) 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.
      (2) Performance agreement
        Each year, the Chief Operating Officer and each senior manager
      appointed under this subsection shall enter into an annual
      performance agreement that sets forth measurable organization and
      individual goals. The agreement shall be subject to review and
      renegotiation at the end of each term.
      (3) Compensation
        (A) In general
          A senior manager appointed under this subsection may be paid
        at an annual rate of basic pay of not more than the maximum
        rate of basic pay for the Senior Executive Service under
        section 5382 of title 5, including any applicable locality-
        based comparability payment that may be authorized under
        section 5304(h)(2)(C) of such title. The compensation of a
        senior manager shall be considered for purposes of section
        207(c)(2)(A) of title 18 to be the equivalent of that described
        under clause (ii) of section 207(c)(2)(A) of such title.
        (B) Bonus
          In addition, a senior manager may receive a bonus in an
        amount such that the manager's total annual compensation does
        not exceed 125 percent of the maximum rate of basic pay for the
        Senior Executive Service, including any applicable locality-
        based comparability payment, based upon the Chief Operating
        Officer's evaluation of the manager's performance in relation
        to the goals set forth in the performance agreement described
        in paragraph (2).
      (4) Removal
        A senior manager shall be removable by the Chief Operating
      Officer, or by the Secretary if the position of Chief Operating
      Officer is vacant.
    (f) Student Loan Ombudsman
      (1) Appointment
        The Chief Operating Officer, in consultation with the
      Secretary, shall appoint a Student Loan Ombudsman to provide
      timely assistance to borrowers of loans made, insured, or
      guaranteed under subchapter IV of this chapter and part C of
      subchapter I of chapter 34 of title 42 by performing the
      functions described in paragraph (3).
      (2) Public information
        The Chief Operating Officer shall disseminate information about
      the availability and functions of the Ombudsman to borrowers and
      potential borrowers, as well as institutions of higher education,
      lenders, guaranty agencies, loan servicers, and other
      participants in those student loan programs.
      (3) Functions of Ombudsman
        The Ombudsman shall - 
          (A) in accordance with regulations of the Secretary, receive,
        review, and attempt to resolve informally complaints from
        borrowers of loans described in paragraph (1), including, as
        appropriate, attempts to resolve such complaints within the
        Department of Education and with institutions of higher
        education, lenders, guaranty agencies, loan servicers, and
        other participants in the loan programs described in paragraph
        (1)(A); (!3) and

          (B) compile and analyze data on borrower complaints and make
        appropriate recommendations.
      (4) Report
        Each year, the Ombudsman shall submit a report to the Chief
      Operating Officer, for inclusion in the annual report under
      subsection (c)(2) of this section, that describes the activities,
      and evaluates the effectiveness of the Ombudsman during the
      preceding year.
    (g) Personnel flexibility
      (1) Personnel ceilings
        The PBO shall not be subject to any ceiling relating to the
      number or grade of employees.
      (2) Administrative flexibility
        The Chief Operating Officer shall work with the Office of
      Personnel Management to develop and implement personnel
      flexibilities in staffing, classification, and pay that meet the
      needs of the PBO, subject to compliance with title 5.
      (3) Excepted service
        The Chief Operating Officer may appoint, without regard to the
      provisions of title 5 governing appointments in the competitive
      service, not more than 25 technical and professional employees to
      administer the functions of the PBO. These employees 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.
    (h) Establishment of fair and equitable system for measuring staff
      performance
      The PBO shall establish an annual performance management system,
    subject to compliance with title 5, and consistent with applicable
    provisions of law and regulations, which strengthens the
    organizational effectiveness of the PBO by providing for
    establishing goals or objectives for individual, group, or
    organizational performance (or any combination thereof), consistent
    with the performance plan of the PBO and its performance planning
    procedures, including those established under the Government
    Performance and Results Act of 1993, and communicating such goals
    or objectives to employees.
    (i) Report
      The Secretary and the Chief Operating Officer, not later than 180
    days after October 7, 1998, shall report to Congress on the
    proposed budget and sources of funding for the operation of the
    PBO.
    (j) Authorization of appropriations
      The Secretary shall allocate from funds made available under
    section 1087h of this title such funds as are appropriate to the
    functions assumed by the PBO. In addition, there are authorized to
    be appropriated such sums as may be necessary to carry out the
    purposes of this part, including transition costs.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 141, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1604.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Chief Financial Officer Act of 1990, referred to in subsec.
    (c)(2)(B), probably means the Chief Financial Officers Act of 1990,
    Pub. L. 101-576, Nov. 15, 1990, 104 Stat. 2838. For complete
    classification of this Act to the Code, see Short Title of 1990
    Amendment note set out under section 501 of Title 31, Money and
    Finance, and Tables.
      The Government Performance and Results Act of 1993, referred to
    in subsecs. (c)(2)(B) and (h), 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.
      The provisions of title 5 governing appointments in the
    competitive service, referred to in subsecs. (e)(1)(A) and (g)(3),
    are classified generally to section 3301 et seq. of Title 5,
    Government Organization and Employees.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1018, Pub. L. 89-329, title I, Sec. 141, as added
    Pub. L. 100-418, title VI, Sec. 6201, Aug. 23, 1988, 102 Stat.
    1514, set out purpose of former part D of this subchapter as being
    the development of student literacy corps programs, prior to the
    general amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1018, Pub. L. 89-329, title I, Sec. 118, as
    added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat.
    1382, defined terms used in former part D of this subchapter, prior
    to the general amendment of this subchapter by Pub. L. 99-498.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
        STUDY OF MARKET MECHANISMS IN FEDERAL STUDENT LOAN PROGRAMS    
      Pub. L. 105-244, title VIII, Sec. 801, Oct. 7, 1998, 112 Stat.
    1803, directed the Comptroller General and Secretary of Education,
    in consultation with a study group, to design and conduct a study
    to identify and evaluate means of establishing a market mechanism
    for the delivery of certain student loans made pursuant to title IV
    of the Higher Education Act (20 U.S.C. 1070 et seq., 42 U.S.C. 2751
    et seq.) and to transmit a final report to congressional committees
    not later than May 15, 2001.

-FOOTNOTE-               

    (!1) So in original. Probably should be paragraph "(4)."

    (!2) So in original. The word "this" probably should not appear.

    (!3) So in original. Par. (1) does not contain a subpar. (A).


-End-



-CITE-
    20 USC Sec. 1018a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part D - Administrative Provisions for Delivery of Student Financial
              Assistance                              

-HEAD-
    Sec. 1018a. Procurement flexibility

-STATUTE-
    (a) Procurement authority
      Subject to the authority of the Secretary, the Chief Operating
    Officer of a PBO may exercise the authority of the Secretary to
    procure property and services in the performance of functions
    managed by the PBO. For the purposes of this section, the term
    "PBO" includes the Chief Operating Officer of the PBO and any
    employee of the PBO exercising procurement authority under the
    preceding sentence.
    (b) In general
      Except as provided in this section, the PBO shall abide by all
    applicable Federal procurement laws and regulations when procuring
    property and services. The PBO shall - 
        (1) enter into contracts for information systems supporting the
      programs authorized under subchapter IV of this chapter and part
      C of subchapter I of chapter 34 of title 42 to carry out the
      functions set forth in section 1018(b)(2) of this title; and
        (2) obtain the services of experts and consultants without
      regard to section 3109 of title 5 and set pay in accordance with
      such section.
    (c) Service contracts
      (1) Performance-based servicing contracts
        The Chief Operating Officer shall, to the extent practicable,
      maximize the use of performance-based servicing contracts,
      consistent with guidelines for such contracts published by the
      Office of Federal Procurement Policy, to achieve cost savings and
      improve service.
      (2) Fee for service arrangements
        The Chief Operating Officer shall, when appropriate and
      consistent with the purposes of the PBO, acquire services related
      to the subchapter IV of this chapter and part C of subchapter I
      of chapter 34 of title 42 delivery system from any entity that
      has the capability and capacity to meet the requirements for the
      system. The Chief Operating Officer is authorized to pay fees
      that are equivalent to those paid by other entities to an
      organization that provides an information system or service that
      meets the requirements of the PBO, as determined by the Chief
      Operating Officer.
    (d) Two-phase source-selection procedures
      (1) In general
        The PBO may use a two-phase process for selecting a source for
      a procurement of property or services.
      (2) First phase
        The procedures for the first phase of the process for a
      procurement are as follows:
        (A) Publication of notice
          The contracting officer for the procurement shall publish a
        notice of the procurement in accordance with section 416 of
        title 41 and subsections (e), (f), and (g) of section 637 of
        title 15, except that the notice shall include only the
        following:
            (i) A general description of the scope or purpose of the
          procurement that provides sufficient information on the scope
          or purpose for sources to make informed business decisions
          regarding whether to participate in the procurement.
            (ii) A description of the basis on which potential sources
          are to be selected to submit offers in the second phase.
            (iii) A description of the information that is to be
          required under subparagraph (B).
            (iv) Any additional information that the contracting
          officer determines appropriate.
        (B) Information submitted by offerors
          Each offeror for the procurement shall submit basic
        information, such as information on the offeror's
        qualifications, the proposed conceptual approach, costs likely
        to be associated with the proposed conceptual approach, and
        past performance of the offeror on Federal Government
        contracts, together with any additional information that is
        requested by the contracting officer.
        (C) Selection for second phase
          The contracting officer shall select the offerors that are to
        be eligible to participate in the second phase of the process.
        The contracting officer shall limit the number of the selected
        offerors to the number of sources that the contracting officer
        determines is appropriate and in the best interests of the
        Federal Government.
      (3) Second phase
        (A) In general
          The contracting officer shall conduct the second phase of the
        source selection process in accordance with sections 253a and
        253b of title 41.
        (B) Eligible participants
          Only the sources selected in the first phase of the process
        shall be eligible to participate in the second phase.
        (C) Single or multiple procurements
          The second phase may include a single procurement or multiple
        procurements within the scope, or for the purpose, described in
        the notice pursuant to paragraph (2)(A).
      (4) Procedures considered competitive
        The procedures used for selecting a source for a procurement
      under this subsection shall be considered competitive procedures
      for all purposes.
    (e) Use of simplified procedures for commercial items
      Whenever the PBO anticipates that commercial items will be
    offered for a procurement, the PBO may use (consistent with the
    special rules for commercial items) the special simplified
    procedures for the procurement without regard to - 
        (1) any dollar limitation otherwise applicable to the use of
      those procedures; and
        (2) the expiration of the authority to use special simplified
      procedures under section 4202(e) of the Clinger-Cohen Act of 1996
      (110 Stat. 654; 10 U.S.C. 2304 note).
    (f) Flexible wait periods and deadlines for submission of offers of
      noncommercial items
      (1) Authority
        In carrying out a procurement, the PBO may - 
          (A) apply a shorter waiting period for the issuance of a
        solicitation after the publication of a notice under section
        416 of title 41 than is required under subsection (a)(3)(A) of
        such section; and
          (B) notwithstanding subsection (a)(3) of such section,
        establish any deadline for the submission of bids or proposals
        that affords potential offerors a reasonable opportunity to
        respond to the solicitation.
      (2) Inapplicability to commercial items
        Paragraph (1) does not apply to a procurement of a commercial
      item.
      (3) Consistency with applicable international agreements
        If an international agreement is applicable to the procurement,
      any exercise of authority under paragraph (1) shall be consistent
      with the international agreement.
    (g) Modular contracting
      (1) In general
        The PBO may satisfy the requirements of the PBO for a system
      incrementally by carrying out successive procurements of modules
      of the system. In doing so, the PBO may use procedures authorized
      under this subsection to procure any such module after the first
      module.
      (2) Utility requirement
        A module may not be procured for a system under this subsection
      unless the module is useful independently of the other modules or
      useful in combination with another module previously procured for
      the system.
      (3) Conditions for use of authority
        The PBO may use procedures authorized under paragraph (4) for
      the procurement of an additional module for a system if - 
          (A) competitive procedures were used for awarding the
        contract for the procurement of the first module for the
        system; and
          (B) the solicitation for the first module included - 
            (i) a general description of the entire system that was
          sufficient to provide potential offerors with reasonable
          notice of the general scope of future modules;
            (ii) other information sufficient for potential offerors to
          make informed business judgments regarding whether to submit
          offers for the contract for the first module; and
            (iii) a statement that procedures authorized under this
          subsection could be used for awarding subsequent contracts
          for the procurement of additional modules for the system.
      (4) Procedures
        If the procurement of the first module for a system meets the
      requirements set forth in paragraph (3), the PBO may award a
      contract for the procurement of an additional module for the
      system using any of the following procedures:
        (A) Sole source
          Award of the contract on a sole-source basis to a contractor
        who was awarded a contract for a module previously procured for
        the system under competitive procedures or procedures
        authorized under subparagraph (B).
        (B) Adequate competition
          Award of the contract on the basis of offers made by - 
            (i) a contractor who was awarded a contract for a module
          previously procured for the system after having been selected
          for award of the contract under this subparagraph or other
          competitive procedures; and
            (ii) at least one other offeror that submitted an offer for
          a module previously procured for the system and is expected,
          on the basis of the offer for the previously procured module,
          to submit a competitive offer for the additional module.
        (C) Other
          Award of the contract under any other procedure authorized by
        law.
      (5) Notice requirement
        (A) Publication
          Not less than 30 days before issuing a solicitation for
        offers for a contract for a module for a system under
        procedures authorized under subparagraph (A) or (B) of
        paragraph (4), the PBO shall publish in the Commerce Business
        Daily a notice of the intent to use such procedures to enter
        into the contract.
        (B) Exception
          Publication of a notice is not required under this paragraph
        with respect to a use of procedures authorized under paragraph
        (4) if the contractor referred to in that subparagraph (who is
        to be solicited to submit an offer) has previously provided a
        module for the system under a contract that contained cost,
        schedule, and performance goals and the contractor met those
        goals.
        (C) Content of notice
          A notice published under subparagraph (A) with respect to a
        use of procedures described in paragraph (4) shall contain the
        information required under section 416(b) of title 41, other
        than paragraph (4) of such section, and shall invite the
        submission of any assertion that the use of the procedures for
        the procurement involved is not in the best interest of the
        Federal Government together with information supporting the
        assertion.
      (6) Documentation
        The basis for an award of a contract under this subsection
      shall be documented. However, a justification pursuant to section
      253(f) of title 41 or section 637(h) of title 15 is not required.
      (7) Simplified source-selection procedures
        The PBO may award a contract under any other simplified
      procedures prescribed by the PBO for the selection of sources for
      the procurement of modules for a system, after the first module,
      that are not to be procured under a contract awarded on a sole-
      source basis.
    (h) Use of simplified procedures for small business set-asides for
      services other than commercial items
      (1) Authority
        The PBO may use special simplified procedures for a procurement
      of services that are not commercial items if - 
          (A) the procurement is in an amount not greater than
        $1,000,000;
          (B) the procurement is conducted as a small business set-
        aside pursuant to section 644(a) of title 15; and
          (C) the price charged for supplies associated with the
        services procured are items of supply expected to be less than
        20 percent of the total contract price.
      (2) Inapplicability to certain procurements
        The authority set forth in paragraph (1) may not be used for - 
          (A) an award of a contract on a sole-source basis; or
          (B) a contract for construction.
    (i) Guidance for use of authority
      (1) Issuance by PBO
        The Chief Operating Officer of the PBO, in consultation with
      the Administrator for Federal Procurement Policy, shall issue
      guidance for the use by PBO personnel of the authority provided
      in this section.
      (2) Guidance from OFPP
        As part of the consultation required under paragraph (1), the
      Administrator for Federal Procurement Policy shall provide the
      PBO with guidance that is designed to ensure, to the maximum
      extent practicable, that the authority under this section is
      exercised by the PBO in a manner that is consistent with the
      exercise of the authority by the heads of the other performance-
      based organizations.
      (3) Compliance with OFPP guidance
        The head of the PBO shall ensure that the procurements of the
      PBO under this section are carried out in a manner that is
      consistent with the guidance provided for the PBO under paragraph
      (2).
    (j) Limitation on multiagency contracting
      No department or agency of the Federal Government may purchase
    property or services under contracts entered into or administered
    by a PBO under this section unless the purchase is approved in
    advance by the senior procurement official of that department or
    agency who is responsible for purchasing by the department or
    agency.
    (k) Laws not affected
      Nothing in this section shall be construed to waive laws for the
    enforcement of civil rights or for the establishment and
    enforcement of labor standards that are applicable to contracts of
    the Federal Government.
    (l) Definitions
      In this section:
      (1) Commercial item
        The term "commercial item" has the meaning given the term in
      section 403(12) of title 41.
      (2) Competitive procedures
        The term "competitive procedures" has the meaning given the
      term in section 259(b) of title 41.
      (3) Sole-source basis
        The term "sole-source basis", with respect to an award of a
      contract, means that the contract is awarded to a source after
      soliciting an offer or offers from, and negotiating with, only
      that source.
      (4) Special rules for commercial items
        The term "special rules for commercial items" means the
      regulations set forth in the Federal Acquisition Regulation
      pursuant to section 253(g)(1) of title 41 and section 427 of
      title 41.
      (5) Special simplified procedures
        The term "special simplified procedures" means the procedures
      applicable to purchases of property and services for amounts not
      greater than the simplified acquisition threshold that are set
      forth in the Federal Acquisition Regulation pursuant to section
      253(g)(1)(B) of title 41 and section 427(a)(1) of title 41.

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 142, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1611.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 4202(e) of the Clinger-Cohen Act of 1996, referred to in
    subsec. (e)(2), is section 4202(e) of Pub. L. 104-106, which is set
    out as a note under section 2304 of Title 10, Armed Forces.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1018a, Pub. L. 89-329, title I, Sec. 142, as
    added Pub. L. 100-418, title VI, Sec. 6201, Aug. 23, 1988, 102
    Stat. 1515, related to grants for literacy corps programs, prior to
    the general amendment of this subchapter by Pub. L. 102-325.

-End-



-CITE-
    20 USC Sec. 1018b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER I - GENERAL PROVISIONS
    Part D - Administrative Provisions for Delivery of Student Financial
              Assistance                              

-HEAD-
    Sec. 1018b. Administrative simplification of student aid delivery

-STATUTE-
    (a) In general
      In order to improve the efficiency and effectiveness of the
    student aid delivery system, the Secretary and the Chief Operating
    Officer shall encourage and participate in the establishment of
    voluntary consensus standards and requirements for the electronic
    transmission of information necessary for the administration of
    programs under subchapter IV of this chapter and part C of
    subchapter I of chapter 34 of title 42.
    (b) Participation in standard setting organizations
      (1) The Chief Operating Officer shall participate in the
    activities of standard setting organizations in carrying out the
    provisions of this section.
      (2) The Chief Operating Officer shall encourage higher education
    groups seeking to develop common forms, standards, and procedures
    in support of the delivery of Federal student financial assistance
    to conduct these activities within a standard setting organization.
      (3) The Chief Operating Officer may pay necessary dues and fees
    associated with participating in standard setting organizations
    pursuant to this subsection.
    (c) Adoption of voluntary consensus standards
      Except with respect to the common financial reporting form under
    section 1090(a) of this title, the Secretary shall consider
    adopting voluntary consensus standards agreed to by the
    organization described in subsection (b) of this section for
    transactions required under subchapter IV of this chapter and part
    C of subchapter I of chapter 34 of title 42, and common data
    elements for such transactions, to enable information to be
    exchanged electronically between systems administered by the
    Department and among participants in the Federal student aid
    delivery system.
    (d) Use of clearinghouses
      Nothing in this section shall restrict the ability of
    participating institutions and lenders from using a clearinghouse
    or servicer to comply with the standards for the exchange of
    information established under this section.
    (e) Data security
      Any entity that maintains or transmits information under a
    transaction covered by this section shall maintain reasonable and
    appropriate administrative, technical, and physical safeguards - 
        (1) to ensure the integrity and confidentiality of the
      information; and
        (2) to protect against any reasonably anticipated security
      threats, or unauthorized uses or disclosures of the information.
    (f) Definitions
      (1) Clearinghouse
        The term "clearinghouse" means a public or private entity that
      processes or facilitates the processing of nonstandard data
      elements into data elements conforming to standards adopted under
      this section.
      (2) Standard setting organization
        The term "standard setting organization" means an organization
      that - 
          (A) is accredited by the American National Standards
        Institute;
          (B) develops standards for information transactions, data
        elements, or any other standard that is necessary to, or will
        facilitate, the implementation of this section; and
          (C) is open to the participation of the various entities
        engaged in the delivery of Federal student financial
        assistance.
      (3) Voluntary consensus standard
        The term "voluntary consensus standard" means a standard
      developed or used by a standard setting organization described in
      paragraph (2).

-SOURCE-
    (Pub. L. 89-329, title I, Sec. 143, as added Pub. L. 105-244, title
    I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1615.)


-MISC1-
                             PRIOR PROVISIONS                         
      Prior sections 1018b to 1018f were omitted in the general
    amendment of this subchapter by Pub. L. 102-325.
      Section 1018b, Pub. L. 89-329, title I, Sec. 143, as added Pub.
    L. 100-418, title VI, Sec. 6201, Aug. 23, 1988, 102 Stat. 1515,
    related to use of funds.
      Section 1018c, Pub. L. 89-329, title I, Sec. 144, as added Pub.
    L. 100-418, title VI, Sec. 6201, Aug. 23, 1988, 102 Stat. 1515;
    Pub. L. 101-610, title II, Sec. 221(a), (b), Nov. 16, 1990, 104
    Stat. 3180, related to applications.
      Section 1018d, Pub. L. 89-329, title I, Sec. 145, as added Pub.
    L. 100-418, title VI, Sec. 6201, Aug. 23, 1988, 102 Stat. 1516,
    related to technical assistance and coordination contracts.
      Section 1018e, Pub. L. 89-329, title I, Sec. 146, as added Pub.
    L. 100-418, title VI, Sec. 6201, Aug. 23, 1988, 102 Stat. 1516;
    Pub. L. 101-305, Sec. 5, May 30, 1990, 104 Stat. 258; Pub. L. 101-
    610, title II, Sec. 221(c), Nov. 16, 1990, 104 Stat. 3180, related
    to authorization of appropriations.
      Section 1018f, Pub. L. 89-329, title I, Sec. 147, as added Pub.
    L. 100-418, title VI, Sec. 6201, Aug. 23, 1988, 102 Stat. 1516,
    defined "public community agency", "institution of higher
    education" and "Secretary".
      A prior section 1019, Pub. L. 89-329, title I, Sec. 119, as added
    Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat. 1383,
    authorized appropriations for education outreach programs, prior to
    the general amendment of this subchapter by Pub. L. 99-498.

-End-


-CITE-
    20 USC SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT

-HEAD-
                SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT            

-COD-
                               CODIFICATION                           
      Pub. L. 107-110, title X, Sec. 1051(1), Jan. 8, 2002, 115 Stat.
    2080, added heading and struck out former heading which read as
    follows: "TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND
    PARTNERSHIPS".


-MISC1-
                             PRIOR PROVISIONS                         
      A prior title II of the Higher Education Act of 1965, comprising
    this subchapter, was originally enacted by Pub. L. 89-329, title
    II, Nov. 8, 1965, 79 Stat. 1224, and amended by Pub. L. 89-752,
    Nov. 3, 1966, 80 Stat. 1240; Pub. L. 90-575, Oct. 16, 1968, 82
    Stat. 1014; Pub. L. 91-230, Apr. 13, 1970, 84 Stat. 121; Pub. L. 92-
    318, June 23, 1972, 86 Stat. 235; Pub. L. 94-482, Oct. 12, 1976,
    90 Stat. 2081; Pub. L. 96-49; Aug. 13, 1979, 93 Stat. 351. Title II
    was extensively revised by Pub. L. 96-374, title II, Sec. 201, Oct.
    3, 1980, 94 Stat. 1383, and was set out in this subchapter as
    having been added by Pub. L. 96-374, and amended, prior to repeal
    by Pub. L. 104-208, div. A, title I, Sec. 101(e) [title VII, Sec.
    708(b)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-312.

-End-


-CITE-
    20 USC Part A - Teacher Quality Enhancement Grants for
                     States and Partnerships               01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part A - Teacher Quality Enhancement Grants for States and
              Partnerships                            

-HEAD-
        PART A - TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND
                               PARTNERSHIPS

-COD-
                               CODIFICATION                           
      Pub. L. 107-110, title X, Sec. 1051(1), Jan. 8, 2002, 115 Stat.
    2080, added heading.

-End-



-CITE-
    20 USC Sec. 1021                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part A - Teacher Quality Enhancement Grants for States and
              Partnerships                            

-HEAD-
    Sec. 1021. Purposes; definitions

-STATUTE-
    (a) Purposes
      The purposes of this part are to - 
        (1) improve student achievement;
        (2) improve the quality of the current and future teaching
      force by improving the preparation of prospective teachers and
      enhancing professional development activities;
        (3) hold institutions of higher education accountable for
      preparing teachers who have the necessary teaching skills and are
      highly competent in the academic content areas in which the
      teachers plan to teach, such as mathematics, science, English,
      foreign languages, history, economics, art, civics, Government,
      and geography, including training in the effective uses of
      technology in the classroom; and
        (4) recruit highly qualified individuals, including individuals
      from other occupations, into the teaching force.
    (b) Definitions
      In this part:
      (1) Arts and sciences
        The term "arts and sciences" means - 
          (A) when referring to an organizational unit of an
        institution of higher education, any academic unit that offers
        1 or more academic majors in disciplines or content areas
        corresponding to the academic subject matter areas in which
        teachers provide instruction; and
          (B) when referring to a specific academic subject matter
        area, the disciplines or content areas in which academic majors
        are offered by the arts and science organizational unit.
      (2) High need local educational agency
        The term "high need local educational agency" means a local
      educational agency that serves an elementary school or secondary
      school located in an area in which there is - 
          (A) a high percentage of individuals from families with
        incomes below the poverty line;
          (B) a high percentage of secondary school teachers not
        teaching in the content area in which the teachers were trained
        to teach; or
          (C) a high teacher turnover rate.
      (3) Poverty line
        The term "poverty line" means the poverty line (as defined by
      the Office of Management and Budget, and revised annually in
      accordance with section 9902(2) of title 42) applicable to a
      family of the size involved.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 201, as added Pub. L. 105-244,
    title II, Sec. 201, Oct. 7, 1998, 112 Stat. 1623; amended Pub. L.
    107-110, title X, Sec. 1051(2), Jan. 8, 2002, 115 Stat. 2080.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1021, Pub. L. 89-329, title II, Sec. 201, as
    added Pub. L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat.
    1383; amended Pub. L. 99-498, title II, Sec. 201(b), (c), Oct. 17,
    1986, 100 Stat. 1287; Pub. L. 100-418, title VI, Sec. 6241, Aug.
    23, 1988, 102 Stat. 1520; Pub. L. 102-325, title II, Sec. 201, July
    23, 1992, 106 Stat. 467, related to congressional statement of
    purpose and authorization of appropriations, prior to repeal by
    Pub. L. 104-208, div. A, title I, Sec. 101(e) [title VII, Sec.
    708(b)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-312.
      Another prior section 1021, Pub. L. 89-329, title II, Sec. 201,
    as added Pub. L. 92-318, title I, Sec. 111(b)(1), June 23, 1972, 86
    Stat. 238; amended Pub. L. 94-482, title I, Sec. 106, Oct. 12,
    1976, 90 Stat. 2089; Pub. L. 96-49, Sec. 3(a), Aug. 13, 1979, 93
    Stat. 351, provided for college library programs, prior to the
    general amendment of this subchapter by Pub. L. 96-374.
      Another prior section 1021, Pub. L. 89-329, title II, Sec. 201,
    Nov. 8, 1965, 79 Stat. 1224; Pub. L. 90-575, title II, Sec. 211,
    Oct. 16, 1968, 82 Stat. 1036; Pub. L. 92-318, title I, Sec.
    111(a)(1), June 23, 1972, 86 Stat. 238, authorized appropriations
    of $50,000,000 for each fiscal year ending June 30, 1966, 1967, and
    1968, and $25,000,000; $75,000,000; $90,000,000; and $18,000,000
    for fiscal years ending June 30, 1969, 1970, 1971, and 1972, for
    library resources grants, prior to repeal by Pub. L. 92-318, title
    I, Sec. 111(b)(1), June 23, 1972, 86 Stat. 238.

                                AMENDMENTS                            
      2002 - Subsecs. (a), (b). Pub. L. 107-110 substituted "this part"
    for "this subchapter" in introductory provisions.

                     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                          
      Subchapter 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.

-End-



-CITE-
    20 USC Sec. 1022                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part A - Teacher Quality Enhancement Grants for States and
              Partnerships                            

-HEAD-
    Sec. 1022. State grants

-STATUTE-
    (a) In general
      From amounts made available under section 1030(1) of this title
    for a fiscal year, the Secretary is authorized to award grants
    under this section, on a competitive basis, to eligible States to
    enable the eligible States to carry out the activities described in
    subsection (d) of this section.
    (b) Eligible State
      (1) Definition
        In this part, the term "eligible State" means - 
          (A) the Governor of a State; or
          (B) in the case of a State for which the constitution or law
        of such State designates another individual, entity, or agency
        in the State to be responsible for teacher certification and
        preparation activity, such individual, entity, or agency.
      (2) Consultation
        The Governor and the individual, entity, or agency designated
      under paragraph (1) shall consult with the Governor, State board
      of education, State educational agency, or State agency for
      higher education, as appropriate, with respect to the activities
      assisted under this section.
      (3) Construction
        Nothing in this subsection shall be construed to negate or
      supersede the legal authority under State law of any State
      agency, State entity, or State public official over programs that
      are under the jurisdiction of the agency, entity, or official.
    (c) Application
      To be eligible to receive a grant under this section, an eligible
    State shall, at the time of the initial grant application, submit
    an application to the Secretary that - 
        (1) meets the requirement of this section;
        (2) includes a description of how the eligible State intends to
      use funds provided under this section; and
        (3) contains such other information and assurances as the
      Secretary may require.
    (d) Uses of funds
      An eligible State that receives a grant under this section shall
    use the grant funds to reform teacher preparation requirements, and
    to ensure that current and future teachers possess the necessary
    teaching skills and academic content knowledge in the subject areas
    in which the teachers are assigned to teach, by carrying out 1 or
    more of the following activities:
      (1) Reforms
        Implementing reforms that hold institutions of higher education
      with teacher preparation programs accountable for preparing
      teachers who are highly competent in the academic content areas
      in which the teachers plan to teach, and possess strong teaching
      skills, which may include the use of rigorous subject matter
      competency tests and the requirement that a teacher have an
      academic major in the subject area, or related discipline, in
      which the teacher plans to teach.
      (2) Certification or licensure requirements
        Reforming teacher certification or licensure requirements to
      ensure that teachers have the necessary teaching skills and
      academic content knowledge in the subject areas in which teachers
      are assigned to teach.
      (3) Alternatives to traditional preparation for teaching
        Providing prospective teachers with alternatives to traditional
      preparation for teaching through programs at colleges of arts and
      sciences or at nonprofit educational organizations.
      (4) Alternative routes to State certification
        Carrying out programs that - 
          (A) include support during the initial teaching experience;
        and
          (B) establish, expand, or improve alternative routes to State
        certification of teachers for highly qualified individuals,
        including mid-career professionals from other occupations,
        paraprofessionals, former military personnel and recent college
        graduates with records of academic distinction.
      (5) Recruitment; pay; removal
        Developing and implementing effective mechanisms to ensure that
      local educational agencies and schools are able to effectively
      recruit highly qualified teachers, to financially reward those
      teachers and principals whose students have made significant
      progress toward high academic performance, such as through
      performance-based compensation systems and access to ongoing
      professional development opportunities for teachers and
      administrators, and to expeditiously remove incompetent or
      unqualified teachers consistent with procedures to ensure due
      process for the teachers.
      (6) Social promotion
        Development and implementation of efforts to address the
      problem of social promotion and to prepare teachers to
      effectively address the issues raised by ending the practice of
      social promotion.
      (7) Recruitment
        Activities described in section 1024(d) of this title.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 202, as added Pub. L. 105-244,
    title II, Sec. 201, Oct. 7, 1998, 112 Stat. 1624; amended Pub. L.
    107-110, title X, Sec. 1051(2), Jan. 8, 2002, 115 Stat. 2080.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1022, Pub. L. 89-329, title II, Sec. 202, as
    added Pub. L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat.
    1384; amended Pub. L. 102-325, title II, Sec. 201, July 23, 1992,
    106 Stat. 468, required each institution of higher education
    receiving grants under this subchapter to annually notify
    designated State agency of its activities under this subchapter,
    prior to repeal by Pub. L. 104-208, div. A, title I, Sec. 101(e)
    [title VII, Sec. 708(b)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-
    312.
      Another prior section 1022, Pub. L. 89-329, title II, Sec. 202,
    Nov. 8, 1965, 79 Stat. 1224; Pub. L. 89-752, Sec. 9, Nov. 3, 1966,
    80 Stat. 1243; Pub. L. 90-575, title II, Sec. 214(a), Oct. 16,
    1968, 82 Stat. 1037; Pub. L. 92-318, title I, Secs. 111(b)(2)(A),
    112(a), (b)(1), June 23, 1972, 86 Stat. 238, 240, related to the
    basic grants for the college library resources program, prior to
    the general amendment of this subchapter by Pub. L. 96-374.

                                AMENDMENTS                            
      2002 - Subsec. (b)(1). Pub. L. 107-110 substituted "this part"
    for "this subchapter" in introductory provisions.

                     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.

-End-



-CITE-
    20 USC Sec. 1023                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part A - Teacher Quality Enhancement Grants for States and
              Partnerships                            

-HEAD-
    Sec. 1023. Partnership grants

-STATUTE-
    (a) Grants
      From amounts made available under section 1030(2) of this title
    for a fiscal year, the Secretary is authorized to award grants
    under this section, on a competitive basis, to eligible
    partnerships to enable the eligible partnerships to carry out the
    activities described in subsections (d) and (e) of this section.
    (b) Definitions
      (1) Eligible partnerships
        In this part, the term "eligible partnerships" means an entity
      that - 
          (A) shall include - 
            (i) a partner institution;
            (ii) a school of arts and sciences; and
            (iii) a high need local educational agency; and

          (B) may include a Governor, State educational agency, the
        State board of education, the State agency for higher
        education, an institution of higher education not described in
        subparagraph (A), a public charter school, a public or private
        elementary school or secondary school, a public or private
        nonprofit educational organization, a business, a teacher
        organization, or a prekindergarten program.
      (2) Partner institution
        In this section, the term "partner institution" means a private
      independent or State-supported public institution of higher
      education, the teacher training program of which demonstrates
      that - 
          (A) graduates from the teacher training program exhibit
        strong performance on State-determined qualifying assessments
        for new teachers through - 
            (i) demonstrating that 80 percent or more of the graduates
          of the program who intend to enter the field of teaching have
          passed all of the applicable State qualification assessments
          for new teachers, which shall include an assessment of each
          prospective teacher's subject matter knowledge in the content
          area or areas in which the teacher intends to teach; or
            (ii) being ranked among the highest-performing teacher
          preparation programs in the State as determined by the State -
           
              (I) using criteria consistent with the requirements for
            the State report card under section 1027(b) of this title;
            and
              (II) using the State report card on teacher preparation
            required under section 1027(b) of this title, after the
            first publication of such report card and for every year
            thereafter; or

          (B) the teacher training program requires all the students of
        the program to participate in intensive clinical experience, to
        meet high academic standards, and - 
            (i) in the case of secondary school candidates, to
          successfully complete an academic major in the subject area
          in which the candidate intends to teach or to demonstrate
          competence through a high level of performance in relevant
          content areas; and
            (ii) in the case of elementary school candidates, to
          successfully complete an academic major in the arts and
          sciences or to demonstrate competence through a high level of
          performance in core academic subject areas.
    (c) Application
      Each eligible partnership 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 such application shall - 
        (1) contain a needs assessment of all the partners with respect
      to teaching and learning and a description of how the partnership
      will coordinate with other teacher training or professional
      development programs, and how the activities of the partnership
      will be consistent with State, local, and other education reform
      activities that promote student achievement;
        (2) contain a resource assessment that describes the resources
      available to the partnership, the intended use of the grant
      funds, including a description of how the grant funds will be
      fairly distributed in accordance with subsection (f) of this
      section, and the commitment of the resources of the partnership
      to the activities assisted under this part, including financial
      support, faculty participation, time commitments, and
      continuation of the activities when the grant ends; and
        (3) contain a description of - 
          (A) how the partnership will meet the purposes of this part;
          (B) how the partnership will carry out the activities
        required under subsection (d) of this section and any
        permissible activities under subsection (e) of this section;
        and
          (C) the partnership's evaluation plan pursuant to section
        1026(b) of this title.
    (d) Required uses of funds
      An eligible partnership that receives a grant under this section
    shall use the grant funds to carry out the following activities:
      (1) Reforms
        Implementing reforms within teacher preparation programs to
      hold the programs accountable for preparing teachers who are
      highly competent in the academic content areas in which the
      teachers plan to teach, and for promoting strong teaching skills,
      including working with a school of arts and sciences and
      integrating reliable research-based teaching methods into the
      curriculum, which curriculum shall include programs designed to
      successfully integrate technology into teaching and learning.
      (2) Clinical experience and interaction
        Providing sustained and high quality preservice clinical
      experience including the mentoring of prospective teachers by
      veteran teachers, and substantially increasing interaction
      between faculty at institutions of higher education and new and
      experienced teachers, principals, and other administrators at
      elementary schools or secondary schools, and providing support,
      including preparation time, for such interaction.
      (3) Professional development
        Creating opportunities for enhanced and ongoing professional
      development that improves the academic content knowledge of
      teachers in the subject areas in which the teachers are certified
      to teach or in which the teachers are working toward
      certification to teach, and that promotes strong teaching skills.
    (e) Allowable uses of funds
      An eligible partnership that receives a grant under this section
    may use such funds to carry out the following activities:
      (1) Teacher preparation and parent involvement
        Preparing teachers to work with diverse student populations,
      including individuals with disabilities and limited English
      proficient individuals, and involving parents in the teacher
      preparation program reform process.
      (2) Dissemination and coordination
        Broadly disseminating information on effective practices used
      by the partnership, and coordinating with the activities of the
      Governor, State board of education, State higher education
      agency, and State educational agency, as appropriate.
      (3) Managerial and leadership skills
        Developing and implementing proven mechanisms to provide
      principals and superintendents with effective managerial and
      leadership skills that result in increased student achievement.
      (4) Teacher recruitment
        Activities described in section 1024(d) of this title.
    (f) Special rule
      No individual member of an eligible partnership shall retain more
    than 50 percent of the funds made available to the partnership
    under this section.
    (g) Construction
      Nothing in this section shall be construed to prohibit an
    eligible partnership from using grant funds to coordinate with the
    activities of more than one Governor, State board of education,
    State educational agency, local educational agency, or State agency
    for higher education.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 203, as added Pub. L. 105-244,
    title II, Sec. 201, Oct. 7, 1998, 112 Stat. 1625; amended Pub. L.
    107-110, title X, Sec. 1051(2), Jan. 8, 2002, 115 Stat. 2080.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1023, Pub. L. 89-329, title II, Sec. 203, as
    added Pub. L. 102-325, title II, Sec. 201, July 23, 1992, 106 Stat.
    468, required Secretary to ensure that programs under this
    subchapter were administered by appropriate library experts, prior
    to repeal by Pub. L. 104-208, div. A, title I, Sec. 101(e) [title
    VII, Sec. 708(b)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-312.
      Another prior section 1023, Pub. L. 89-329, title II, Sec. 203,
    Nov. 8, 1965, 79 Stat. 1225; Pub. L. 90-575, title II, Sec. 212(a),
    Oct. 16, 1968, 82 Stat. 1036; Pub. L. 92-318, title I, Secs.
    111(b)(2)(B), 112(b)(2), 113(a), June 23, 1972, 86 Stat. 239, 240,
    provided for supplemental grants in the college library resources
    program, prior to the general amendment of this subchapter by Pub.
    L. 96-374.

                                AMENDMENTS                            
      2002 - Subsec. (b)(1). Pub. L. 107-110 substituted "this part"
    for "this subchapter" in introductory provisions.
      Subsec. (c)(2), (3)(A). Pub. L. 107-110 substituted "this part"
    for "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.

-End-



-CITE-
    20 USC Sec. 1024                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part A - Teacher Quality Enhancement Grants for States and
              Partnerships                            

-HEAD-
    Sec. 1024. Teacher recruitment grants

-STATUTE-
    (a) Program authorized
      From amounts made available under section 1030(3) of this title
    for a fiscal year, the Secretary is authorized to award grants, on
    a competitive basis, to eligible applicants to enable the eligible
    applicants to carry out activities described in subsection (d) of
    this section.
    (b) "Eligible applicant" defined
      In this part, the term "eligible applicant" means - 
        (1) an eligible State described in section 1022(b) of this
      title; or
        (2) an eligible partnership described in section 1023(b) of
      this title.
    (c) Application
      Any eligible applicant desiring to receive a grant under this
    section shall submit an application to the Secretary at such time,
    in such form, and containing such information as the Secretary may
    require, including - 
        (1) a description of the assessment that the eligible
      applicant, and the other entities with whom the eligible
      applicant will carry out the grant activities, have undertaken to
      determine the most critical needs of the participating high-need
      local educational agencies;
        (2) a description of the activities the eligible applicant will
      carry out with the grant; and
        (3) a description of the eligible applicant's plan for
      continuing the activities carried out with the grant, once
      Federal funding ceases.
    (d) Uses of funds
      Each eligible applicant receiving a grant under this section
    shall use the grant funds - 
        (1)(A) to award scholarships to help students pay the costs of
      tuition, room, board, and other expenses of completing a teacher
      preparation program;
        (B) to provide support services, if needed to enable
      scholarship recipients to complete postsecondary education
      programs; and
        (C) for followup services provided to former scholarship
      recipients during the recipients first 3 years of teaching; or
        (2) to develop and implement effective mechanisms to ensure
      that high need local educational agencies and schools are able to
      effectively recruit highly qualified teachers.
    (e) Service requirements
      The Secretary shall establish such requirements as the Secretary
    finds necessary to ensure that recipients of scholarships under
    this section who complete teacher education programs subsequently
    teach in a high-need local educational agency, for a period of time
    equivalent to the period for which the recipients receive
    scholarship assistance, or repay the amount of the scholarship. The
    Secretary shall use any such repayments to carry out additional
    activities under this section.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 204, as added Pub. L. 105-244,
    title II, Sec. 201, Oct. 7, 1998, 112 Stat. 1627; amended Pub. L.
    107-110, title X, Sec. 1051(2), Jan. 8, 2002, 115 Stat. 2080.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1024, Pub. L. 89-329, title II, Sec. 204, Nov. 8,
    1965, 79 Stat. 1226; Pub. L. 90-575, title II, Sec. 212(b), (c),
    213(a), Oct. 16, 1968, 82 Stat. 1036; Pub. L. 92-318, title I, Sec.
    111(b)(2)(C), June 23, 1972, 86 Stat. 239, provided for special
    purpose grants in the college library resources program, prior to
    the general amendment of this subchapter by Pub. L. 96-374.

                                AMENDMENTS                            
      2002 - Subsec. (b). Pub. L. 107-110 substituted "this part" for
    "this subchapter" in introductory provisions.

                     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.

-End-



-CITE-
    20 USC Sec. 1025                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part A - Teacher Quality Enhancement Grants for States and
              Partnerships                            

-HEAD-
    Sec. 1025. Administrative provisions

-STATUTE-
    (a) Duration; one-time awards; payments
      (1) Duration
        (A) Eligible States and eligible applicants
          Grants awarded to eligible States and eligible applicants
        under this part shall be awarded for a period not to exceed 3
        years.
        (B) Eligible partnerships
          Grants awarded to eligible partnerships under this part shall
        be awarded for a period of 5 years.
      (2) One-time award
        An eligible State and an eligible partnership may receive a
      grant under each of sections 1022, 1023, and 1024 of this title
      only once.
      (3) Payments
        The Secretary shall make annual payments of grant funds awarded
      under this part.
    (b) Peer review
      (1) Panel
        The Secretary shall provide the applications submitted under
      this part to a peer review panel for evaluation. With respect to
      each application, the peer review panel shall initially recommend
      the application for funding or for disapproval.
      (2) Priority
        In recommending applications to the Secretary for funding under
      this part, the panel shall - 
          (A) with respect to grants under section 1022 of this title,
        give priority to eligible States serving States that - 
            (i) have initiatives to reform State teacher certification
          requirements that are designed to ensure that current and
          future teachers possess the necessary teaching skills and
          academic content knowledge in the subject areas in which the
          teachers are certified or licensed to teach;
            (ii) include innovative reforms to hold institutions of
          higher education with teacher preparation programs
          accountable for preparing teachers who are highly competent
          in the academic content area in which the teachers plan to
          teach and have strong teaching skills; or
            (iii) involve the development of innovative efforts aimed
          at reducing the shortage of highly qualified teachers in high
          poverty urban and rural areas;

          (B) with respect to grants under section 1023 of this title -
        
            (i) give priority to applications from eligible
          partnerships that involve businesses; and
            (ii) take into consideration - 
              (I) providing an equitable geographic distribution of the
            grants throughout the United States; and
              (II) the potential of the proposed activities for
            creating improvement and positive change.
      (3) Secretarial selection
        The Secretary shall determine, based on the peer review
      process, which application shall receive funding and the amounts
      of the grants. In determining grant amounts, the Secretary shall
      take into account the total amount of funds available for all
      grants under this part and the types of activities proposed to be
      carried out.
    (c) Matching requirements
      (1) State grants
        Each eligible State receiving a grant under section 1022 or
      1024 of this title shall provide, from non-Federal sources, an
      amount equal to 50 percent of the amount of the grant (in cash or
      in kind) to carry out the activities supported by the grant.
      (2) Partnership grants
        Each eligible partnership receiving a grant under section 1023
      or 1024 of this title shall provide, from non-Federal sources (in
      cash or in kind), an amount equal to 25 percent of the grant for
      the first year of the grant, 35 percent of the grant for the
      second year of the grant, and 50 percent of the grant for each
      succeeding year of the grant.
    (d) Limitation on administrative expenses
      An eligible State or eligible partnership that receives a grant
    under this part may not use more than 2 percent of the grant funds
    for purposes of administering the grant.
    (e) Teacher qualifications provided to parents upon request
      Any local educational agency or school that benefits from the
    activities assisted under this part shall make available, upon
    request and in an understandable and uniform format, to any parent
    of a student attending any school served by the local educational
    agency, information regarding the qualification of the student's
    classroom teacher with regard to the subject matter in which the
    teacher provides instruction. The local educational agency shall
    inform parents that the parents are entitled to receive the
    information upon request.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 205, as added Pub. L. 105-244,
    title II, Sec. 201, Oct. 7, 1998, 112 Stat. 1628; amended Pub. L.
    107-110, title X, Sec. 1051(2), Jan. 8, 2002, 115 Stat. 2080.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1025, Pub. L. 89-329, title II, Sec. 205, Nov. 8,
    1965, 79 Stat. 1226; Pub. L. 91-230, title IV, Sec. 401(h)(4), Apr.
    13, 1970, 84 Stat. 174, created the Advisory Council on College
    Library Resources, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

                                AMENDMENTS                            
      2002 - Subsecs. (a)(1), (b), (d), (e). Pub. L. 107-110
    substituted "this part" for "this subchapter" wherever appearing.

                     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.

-End-



-CITE-
    20 USC Sec. 1026                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part A - Teacher Quality Enhancement Grants for States and
              Partnerships                            

-HEAD-
    Sec. 1026. Accountability and evaluation

-STATUTE-
    (a) State grant accountability report
      An eligible State that receives a grant under section 1022 of
    this title shall submit an annual accountability report to the
    Secretary, the Committee on Labor and Human Resources of the
    Senate, and the Committee on Education and the Workforce of the
    House of Representatives. Such report shall include a description
    of the degree to which the eligible State, in using funds provided
    under such section, has made substantial progress in meeting the
    following goals:
      (1) Student achievement
        Increasing student achievement for all students as defined by
      the eligible State.
      (2) Raising standards
        Raising the State academic standards required to enter the
      teaching profession, including, where appropriate, through the
      use of incentives to incorporate the requirement of an academic
      major in the subject, or related discipline, in which the teacher
      plans to teach.
      (3) Initial certification or licensure
        Increasing success in the pass rate for initial State teacher
      certification or licensure, or increasing the numbers of highly
      qualified individuals being certified or licensed as teachers
      through alternative programs.
      (4) Core academic subjects
        (A) Secondary school classes
          Increasing the percentage of secondary school classes taught
        in core academic subject areas by teachers - 
            (i) with academic majors in those areas or in a related
          field;
            (ii) who can demonstrate a high level of competence through
          rigorous academic subject area tests; or
            (iii) who can demonstrate competence through a high level
          of performance in relevant content areas.
        (B) Elementary school classes
          Increasing the percentage of elementary school classes taught
        by teachers - 
            (i) with academic majors in the arts and sciences; or
            (ii) who can demonstrate competence through a high level of
          performance in core academic subjects.
      (5) Decreasing teacher shortages
        Decreasing shortages of qualified teachers in poor urban and
      rural areas.
      (6) Increasing opportunities for professional development
        Increasing opportunities for enhanced and ongoing professional
      development that improves the academic content knowledge of
      teachers in the subject areas in which the teachers are certified
      or licensed to teach or in which the teachers are working toward
      certification or licensure to teach, and that promotes strong
      teaching skills.
      (7) Technology integration
        Increasing the number of teachers prepared to integrate
      technology in the classroom.
    (b) Eligible partnership evaluation
      Each eligible partnership receiving a grant under section 1023 of
    this title shall establish and include in the application submitted
    under section 1023(c) of this title, an evaluation plan that
    includes strong performance objectives. The plan shall include
    objectives and measures for - 
        (1) increased student achievement for all students as measured
      by the partnership;
        (2) increased teacher retention in the first 3 years of a
      teacher's career;
        (3) increased success in the pass rate for initial State
      certification or licensure of teachers; and
        (4) increased percentage of secondary school classes taught in
      core academic subject areas by teachers - 
          (A) with academic majors in the areas or in a related field;
        and
          (B) who can demonstrate a high level of competence through
        rigorous academic subject area tests or who can demonstrate
        competence through a high level of performance in relevant
        content areas;

        (5) increasing the percentage of elementary school classes
      taught by teachers with academic majors in the arts and sciences
      or who demonstrate competence through a high level of performance
      in core academic subject areas; and
        (6) increasing the number of teachers trained in technology.
    (c) Revocation of grant
      (1) Report
        Each eligible State or eligible partnership receiving a grant
      under this part shall report annually on the progress of the
      eligible State or eligible partnership toward meeting the
      purposes of this part and the goals, objectives, and measures
      described in subsections (a) and (b) of this section.
      (2) Revocation
        (A) Eligible States and eligible applicants
          If the Secretary determines that an eligible State or
        eligible applicant is not making substantial progress in
        meeting the purposes, goals, objectives, and measures, as
        appropriate, by the end of the second year of a grant under
        this part, then the grant payment shall not be made for the
        third year of the grant.
        (B) Eligible partnerships
          If the Secretary determines that an eligible partnership is
        not making substantial progress in meeting the purposes, goals,
        objectives, and measures, as appropriate, by the end of the
        third year of a grant under this part, then the grant payments
        shall not be made for any succeeding year of the grant.
    (d) Evaluation and dissemination
      The Secretary shall evaluate the activities funded under this
    part and report the Secretary's findings regarding the activities
    to the Committee on Labor and Human Resources of the Senate and the
    Committee on Education and the Workforce of the House of
    Representatives. The Secretary shall broadly disseminate successful
    practices developed by eligible States and eligible partnerships
    under this part, and shall broadly disseminate information
    regarding such practices that were found to be ineffective.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 206, as added Pub. L. 105-244,
    title II, Sec. 201, Oct. 7, 1998, 112 Stat. 1630; amended Pub. L.
    107-110, title X, Sec. 1051(2), Jan. 8, 2002, 115 Stat. 2080.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1026, Pub. L. 89-329, title II, Sec. 206, Nov. 8,
    1965, 79 Stat. 1226, related to the accreditation of educational
    institutions, prior to the general amendment of this subchapter by
    Pub. L. 96-374.

                                AMENDMENTS                            
      2002 - Subsecs. (c), (d). Pub. L. 107-110 substituted "this part"
    for "this subchapter" wherever appearing.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     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.

-End-



-CITE-
    20 USC Sec. 1027                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part A - Teacher Quality Enhancement Grants for States and
              Partnerships                            

-HEAD-
    Sec. 1027. Accountability for programs that prepare teachers

-STATUTE-
    (a) Development of definitions and reporting methods
      Within 9 months of October 7, 1998, the Commissioner of the
    National Center for Education Statistics, in consultation with
    States and institutions of higher education, shall develop key
    definitions for terms, and uniform reporting methods (including the
    key definitions for the consistent reporting of pass rates),
    related to the performance of elementary school and secondary
    school teacher preparation programs.
    (b) State report card on quality of teacher preparation
      Each State that receives funds under this chapter shall provide
    to the Secretary, within 2 years of October 7, 1998, and annually
    thereafter, in a uniform and comprehensible manner that conforms
    with the definitions and methods established in subsection (a) of
    this section, a State report card on the quality of teacher
    preparation in the State, which shall include at least the
    following:
        (1) A description of the teacher certification and licensure
      assessments, and any other certification and licensure
      requirements, used by the State.
        (2) The standards and criteria that prospective teachers must
      meet in order to attain initial teacher certification or
      licensure and to be certified or licensed to teach particular
      subjects or in particular grades within the State.
        (3) A description of the extent to which the assessments and
      requirements described in paragraph (1) are aligned with the
      State's standards and assessments for students.
        (4) The percentage of teaching candidates who passed each of
      the assessments used by the State for teacher certification and
      licensure, and the passing score on each assessment that
      determines whether a candidate has passed that assessment.
        (5) The percentage of teaching candidates who passed each of
      the assessments used by the State for teacher certification and
      licensure, disaggregated and ranked, by the teacher preparation
      program in that State from which the teacher candidate received
      the candidate's most recent degree, which shall be made available
      widely and publicly.
        (6) Information on the extent to which teachers in the State
      are given waivers of State certification or licensure
      requirements, including the proportion of such teachers
      distributed across high- and low-poverty school districts and
      across subject areas.
        (7) A description of each State's alternative routes to teacher
      certification, if any, and the percentage of teachers certified
      through alternative certification routes who pass State teacher
      certification or licensure assessments.
        (8) For each State, a description of proposed criteria for
      assessing the performance of teacher preparation programs within
      institutions of higher education in the State, including
      indicators of teacher candidate knowledge and skills.
        (9) Information on the extent to which teachers or prospective
      teachers in each State are required to take examinations or other
      assessments of their subject matter knowledge in the area or
      areas in which the teachers provide instruction, the standards
      established for passing any such assessments, and the extent to
      which teachers or prospective teachers are required to receive a
      passing score on such assessments in order to teach in specific
      subject areas or grade levels.
    (c) Initial report
      (1) In general
        Each State that receives funds under this chapter, not later
      than 6 months of (!1) October 7, 1998, and in a uniform and
      comprehensible manner, shall submit to the Secretary the
      information described in paragraphs (1), (5), and (6) of
      subsection (b) of this section. Such information shall be
      compiled by the Secretary and submitted to the Committee on Labor
      and Human Resources of the Senate and the Committee on Education
      and the Workforce of the House of Representatives not later than
      9 months after October 7, 1998.

      (2) Construction
        Nothing in this subsection shall be construed to require a
      State to gather information that is not in the possession of the
      State or the teacher preparation programs in the State, or
      readily available to the State or teacher preparation programs.
    (d) Report of Secretary on quality of teacher preparation
      (1) Report card
        The Secretary shall provide to Congress, and publish and make
      widely available, a report card on teacher qualifications and
      preparation in the United States, including all the information
      reported in paragraphs (1) through (9) of subsection (b) of this
      section. Such report shall identify States for which eligible
      States and eligible partnerships received a grant under this
      part. Such report shall be so provided, published and made
      available not later than 2 years 6 months after October 7, 1998,
      and annually thereafter.
      (2) Report to Congress
        The Secretary shall report to Congress - 
          (A) a comparison of States' efforts to improve teaching
        quality; and
          (B) regarding the national mean and median scores on any
        standardized test that is used in more than 1 State for teacher
        certification or licensure.
      (3) Special rule
        In the case of teacher preparation programs with fewer than 10
      graduates taking any single initial teacher certification or
      licensure assessment during an academic year, the Secretary shall
      collect and publish information with respect to an average pass
      rate on State certification or licensure assessments taken over a
      3-year period.
    (e) Coordination
      The Secretary, to the extent practicable, shall coordinate the
    information collected and published under this part among States
    for individuals who took State teacher certification or licensure
    assessments in a State other than the State in which the individual
    received the individual's most recent degree.
    (f) Institutional report cards on quality of teacher preparation
      (1) Report card
        Each institution of higher education that conducts a teacher
      preparation program that enrolls students receiving Federal
      assistance under this chapter, not later than 18 months after
      October 7, 1998, and annually thereafter, shall report to the
      State and the general public, in a uniform and comprehensible
      manner that conforms with the definitions and methods established
      under subsection (a) of this section, the following information:
        (A) Pass rate
          (i) For the most recent year for which the information is
        available, the pass rate of the institution's graduates on the
        teacher certification or licensure assessments of the State in
        which the institution is located, but only for those students
        who took those assessments within 3 years of completing the
        program.
          (ii) A comparison of the program's pass rate with the average
        pass rate for programs in the State.
          (iii) In the case of teacher preparation programs with fewer
        than 10 graduates taking any single initial teacher
        certification or licensure assessment during an academic year,
        the institution shall collect and publish information with
        respect to an average pass rate on State certification or
        licensure assessments taken over a 3-year period.
        (B) Program information
          The number of students in the program, the average number of
        hours of supervised practice teaching required for those in the
        program, and the faculty-student ratio in supervised practice
        teaching.
        (C) Statement
          In States that approve or accredit teacher education
        programs, a statement of whether the institution's program is
        so approved or accredited.
        (D) Designation as low-performing
          Whether the program has been designated as low-performing by
        the State under section 1028(a) of this title.
      (2) Requirement
        The information described in paragraph (1) shall be reported
      through publications such as school catalogs and promotional
      materials sent to potential applicants, secondary school guidance
      counselors, and prospective employers of the institution's
      program graduates.
      (3) Fines
        In addition to the actions authorized in section 1094(c) of
      this title, the Secretary may impose a fine not to exceed $25,000
      on an institution of higher education for failure to provide the
      information described in this subsection in a timely or accurate
      manner.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 207, as added Pub. L. 105-244,
    title II, Sec. 201, Oct. 7, 1998, 112 Stat. 1632; amended Pub. L.
    107-110, title X, Sec. 1051(2), Jan. 8, 2002, 115 Stat. 2080.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsecs. (b), (c)(1), and (f)(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.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1027, Pub. L. 89-329, title II, Sec. 207, Nov. 8,
    1965, 79 Stat. 1227; Pub. L. 92-318, title I, Sec. 131(d)(2)(B),
    June 23, 1972, 86 Stat. 260, prohibited grants for library
    resources to be used for sectarian instruction or religious
    worship, prior to the general amendment of this subchapter by Pub.
    L. 96-374.

                                AMENDMENTS                            
      2002 - Subsecs. (d)(1), (e). Pub. L. 107-110 substituted "this
    part" for "this subchapter".

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     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.

-FOOTNOTE-
    (!1) So in original. Probably should be "after".


-End-



-CITE-
    20 USC Sec. 1028                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part A - Teacher Quality Enhancement Grants for States and
              Partnerships                            

-HEAD-
    Sec. 1028. State functions

-STATUTE-
    (a) State assessment
      In order to receive funds under this chapter, a State, not later
    than 2 years after October 7, 1998, shall have in place a procedure
    to identify, and assist, through the provision of technical
    assistance, low-performing programs of teacher preparation within
    institutions of higher education. Such State shall provide the
    Secretary an annual list of such low-performing institutions that
    includes an identification of those institutions at-risk of being
    placed on such list. Such levels of performance shall be determined
    solely by the State and may include criteria based upon information
    collected pursuant to this part. Such assessment shall be described
    in the report under section 1027(b) of this title.
    (b) Termination of eligibility
      Any institution of higher education that offers a program of
    teacher preparation in which the State has withdrawn the State's
    approval or terminated the State's financial support due to the low
    performance of the institution's teacher preparation program based
    upon the State assessment described in subsection (a) of this
    section - 
        (1) shall be ineligible for any funding for professional
      development activities awarded by the Department of Education;
      and
        (2) shall not be permitted to accept or enroll any student that
      receives aid under subchapter IV of this chapter and part C of
      subchapter I of chapter 34 of title 42 in the institution's
      teacher preparation program.
    (c) Negotiated rulemaking
      If the Secretary develops any regulations implementing subsection
    (b)(2) of this section, the Secretary shall submit such proposed
    regulations to a negotiated rulemaking process, which shall include
    representatives of States, institutions of higher education, and
    educational and student organizations.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 208, as added Pub. L. 105-244,
    title II, Sec. 201, Oct. 7, 1998, 112 Stat. 1634; amended Pub. L.
    107-110, title X, Sec. 1051(2), Jan. 8, 2002, 115 Stat. 2080.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (a), 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.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1028, Pub. L. 89-329, title II, Sec. 208, Nov. 8,
    1965, 79 Stat. 1227, required that institutions inform State
    agencies of their activities under the college library resources
    program, prior to the general amendment of this subchapter by Pub.
    L. 96-374.

                                AMENDMENTS                            
      2002 - Subsec. (a). Pub. L. 107-110 substituted "this part" for
    "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.

-End-



-CITE-
    20 USC Sec. 1029                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part A - Teacher Quality Enhancement Grants for States and
              Partnerships                            

-HEAD-
    Sec. 1029. General provisions

-STATUTE-
    (a) Methods
      In complying with sections 1027 and 1028 of this title, the
    Secretary shall ensure that States and institutions of higher
    education use fair and equitable methods in reporting and that the
    reporting methods protect the privacy of individuals.
    (b) Special rule
      For each State in which there are no State certification or
    licensure assessments, or for States that do not set minimum
    performance levels on those assessments - 
        (1) the Secretary shall, to the extent practicable, collect
      data comparable to the data required under this part from States,
      local educational agencies, institutions of higher education, or
      other entities that administer such assessments to teachers or
      prospective teachers; and
        (2) notwithstanding any other provision of this part, the
      Secretary shall use such data to carry out requirements of this
      part related to assessments or pass rates.
    (c) Limitations
      (1) Federal control prohibited
        Nothing in this part shall be construed to permit, allow,
      encourage, or authorize any Federal control over any aspect of
      any private, religious, or home school, whether or not a home
      school is treated as a private school or home school under State
      law. This section shall not be construed to prohibit private,
      religious, or home schools from participation in programs or
      services under this part.
      (2) No change in State control encouraged or required
        Nothing in this part shall be construed to encourage or require
      any change in a State's treatment of any private, religious, or
      home school, whether or not a home school is treated as a private
      school or home school under State law.
      (3) National system of teacher certification prohibited
        Nothing in this part shall be construed to permit, allow,
      encourage, or authorize the Secretary to establish or support any
      national system of teacher certification.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 209, as added Pub. L. 105-244,
    title II, Sec. 201, Oct. 7, 1998, 112 Stat. 1635; amended Pub. L.
    107-110, title X, Sec. 1051(2), Jan. 8, 2002, 115 Stat. 2080.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1029, Pub. L. 89-329, title II, Sec. 211, as
    added Pub. L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat.
    1384; amended Pub. L. 99-498, title II, Sec. 202, Oct. 17, 1986,
    100 Stat. 1287; Pub. L. 102-325, title II, Sec. 201, July 23, 1992,
    106 Stat. 468, related to college library technology and
    cooperation grants, prior to repeal by Pub. L. 104-208, div. A,
    title I, Sec. 101(e) [title VII, Sec. 708(b)], Sept. 30, 1996, 110
    Stat. 3009-233, 3009-312.

                                AMENDMENTS                            
      2002 - Subsecs. (b), (c). Pub. L. 107-110 substituted "this part"
    for "this subchapter" wherever appearing.

                     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.

-End-



-CITE-
    20 USC Sec. 1030                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part A - Teacher Quality Enhancement Grants for States and
              Partnerships                            

-HEAD-
    Sec. 1030. Authorization of appropriations

-STATUTE-
      There are authorized to be appropriated to carry out this part
    $300,000,000 for fiscal year 1999 and such sums as may be necessary
    for each of the 4 succeeding fiscal years, of which - 
        (1) 45 percent shall be available for each fiscal year to award
      grants under section 1022 of this title;
        (2) 45 percent shall be available for each fiscal year to award
      grants under section 1023 of this title; and
        (3) 10 percent shall be available for each fiscal year to award
      grants under section 1024 of this title.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 210, as added Pub. L. 105-244,
    title II, Sec. 201, Oct. 7, 1998, 112 Stat. 1635; amended Pub. L.
    107-110, title X, Sec. 1051(2), Jan. 8, 2002, 115 Stat. 2080.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1030, Pub. L. 89-329, title II, Sec. 213, as
    added Pub. L. 99-498, title II, Sec. 203, Oct. 17, 1986, 100 Stat.
    1289, which defined "full-time equivalent students", was omitted in
    the general amendment of this subchapter by Pub. L. 102-325, title
    II, Sec. 201, July 23, 1992, 106 Stat. 467.
      A prior section 1031, Pub. L. 89-329, title II, Sec. 221, as
    added Pub. L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat.
    1385; amended Pub. L. 99-498, title II, Sec. 204(b)(1), Oct. 17,
    1986, 100 Stat. 1289; Pub. L. 102-325, title II, Sec. 201, July 23,
    1992, 106 Stat. 469, authorized grants in accordance with former
    sections 1032 and 1033 of this title, prior to repeal by Pub. L.
    104-208, div. A, title I, Sec. 101(e) [title VII, Sec. 708(b)],
    Sept. 30, 1996, 110 Stat. 3009-233, 3009-312.
      Another prior section 1031, Pub. L. 89-329, title II, Sec. 221,
    as added Pub. L. 92-318, title I, Sec. 111(b)(3)(A), June 23, 1972,
    86 Stat. 239, contained the grant authority for training and
    research programs, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      Another prior section 1031, Pub. L. 89-329, title II, Sec. 221,
    Nov. 8, 1965, 79 Stat. 1227; Pub. L. 90-575, title II, Sec. 215,
    Oct. 16, 1968, 82 Stat. 1037; Pub. L. 92-318, title I, Sec.
    111(a)(2), June 23, 1972, 86 Stat. 238, authorized appropriations
    of $15,000,000 for each fiscal year ending June 30, 1966, 1967, and
    1968, and $11,800,000; $28,000,000; $38,000,000; and $12,000,000
    for fiscal years ending June 30, 1969, 1970, 1971, and 1972, prior
    to repeal by Pub. L. 92-318, title I, Sec. 111(b)(3)(A), June 23,
    1972, 86 Stat. 239.
      A prior section 1032, Pub. L. 89-329, title II, Sec. 222, as
    added Pub. L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat.
    1385; amended Pub. L. 102-325, title II, Sec. 201, July 23, 1992,
    106 Stat. 469, related to library education and human resource
    development, prior to repeal by Pub. L. 104-208, div. A, title I,
    Sec. 101(e) [title VII, Sec. 708(b)], Sept. 30, 1996, 110 Stat.
    3009-233, 3009-312.
      Another prior section 1032, Pub. L. 89-329, title II, Sec. 222,
    Nov. 8, 1965, 79 Stat. 1227, defined the term "librarianship",
    prior to repeal by Pub. L. 92-318, title I, Sec. 111(b)(3)(A), June
    23, 1972, 86 Stat. 239.
      A prior section 1033, Pub. L. 89-329, title II, Sec. 223, as
    added Pub. L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat.
    1385; amended Pub. L. 99-498, title II, Sec. 205, Oct. 17, 1986,
    100 Stat. 1289; Pub. L. 102-325, title II, Sec. 201, July 23, 1992,
    106 Stat. 470, authorized Secretary to make grants and enter into
    contracts for research and development projects, prior to repeal by
    Pub. L. 104-208, div. A, title I, Sec. 101(e) [title VII, Sec.
    708(b)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-312.
      Another prior section 1033, Pub. L. 89-329, title II, Sec. 222,
    formerly Sec. 223, Nov. 8, 1965, 79 Stat. 1227; Pub. L. 90-575,
    title II, Sec. 216, Oct. 16, 1968, 82 Stat. 1037, renumbered and
    amended Pub. L. 92-318, title I, Sec. 111(b)(3)(B)-(D), June 23,
    1972, 86 Stat. 239, 240, related to grants for training in
    librarianship, prior to the general amendment of this subchapter by
    Pub. L. 96-374.
      A prior section 1034, Pub. L. 89-329, title II, Sec. 224, as
    added Pub. L. 102-325, title II, Sec. 201, July 23, 1992, 106 Stat.
    470, required Secretary to consult with appropriate library and
    information science professional bodies in determining critical
    needs and priorities under former sections 1032 and 1033 of this
    title, prior to repeal by Pub. L. 104-208, div. A, title I, Sec.
    101(e) [title VII, Sec. 708(b)], Sept. 30, 1996, 110 Stat. 3009-
    233, 3009-312.
      Another prior section 1034, Pub. L. 89-329, title II, Sec. 224,
    as added Pub. L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat.
    1385, authorized special purpose grants, prior to repeal by Pub. L.
    99-498, title II, Sec. 204(a), Oct. 17, 1986, 100 Stat. 1289.
      Another prior section 1034, Pub. L. 89-329, title II, Sec. 223,
    formerly Sec. 224, Nov. 8, 1965, 79 Stat. 1228, Pub. L. 91-230,
    title IV, Sec. 401(h)(4), Apr. 13, 1970, 84 Stat. 174, and
    renumbered Pub. L. 92-318, title I, Sec. 111(b)(3)(D), June 23,
    1972, 86 Stat. 240, related to grants for research and
    demonstration projects, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

                                AMENDMENTS                            
      2002 - Pub. L. 107-110 substituted "this part" for "this
    subchapter" in introductory provisions.

                     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.

-End-


-CITE-
    20 USC Part B - Preparing Tomorrow's Teachers To Use
                     Technology                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part B - Preparing Tomorrow's Teachers To Use Technology

-HEAD-
         PART B - PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY     

-End-



-CITE-
    20 USC Sec. 1041                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part B - Preparing Tomorrow's Teachers To Use Technology

-HEAD-
    Sec. 1041. Purpose and program authority

-STATUTE-
    (a) Purpose
      It is the purpose of this part to assist consortia of public and
    private entities - 
        (1) to carry out programs that prepare prospective teachers to
      use advanced technology to prepare all students to meet
      challenging State and local academic content and student academic
      achievement standards; and
        (2) to improve the ability of institutions of higher education
      to carry out such programs.
    (b) Program authority
      (1) In general
        The Secretary is authorized to award grants to eligible
      applicants, or enter into contracts or cooperative agreements
      with eligible applicants, on a competitive basis in order to pay
      for the Federal share of the cost of projects to develop or
      redesign teacher preparation programs to enable prospective
      teachers to use advanced technology effectively in their
      classrooms.
      (2) Period of awards
        The Secretary may award grants, or enter into contracts or
      cooperative agreements, under this part for periods that are not
      more than 5 years in duration.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 221, as added Pub. L. 107-110,
    title X, Sec. 1051(3), Jan. 8, 2002, 115 Stat. 2080.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1041, Pub. L. 89-329, title II, Sec. 231, as
    added Pub. L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat.
    1386; amended Pub. L. 99-498, title II, Secs. 204(b)(2), 206, Oct.
    17, 1986, 100 Stat. 1289; Pub. L. 102-325, title II, Sec. 201, July
    23, 1992, 106 Stat. 470, authorized grants to institutions with
    major research libraries, prior to repeal by Pub. L. 104-208, div.
    A, title I, Sec. 101(e) [title VII, Sec. 708(b)], Sept. 30, 1996,
    110 Stat. 3009-233, 3009-312.
      Another prior section 1041, Pub. L. 89-329, title II, Sec. 231,
    as added Pub. L. 94-482, title I, Sec. 107, Oct. 12, 1976, 90 Stat.
    2090, set out the Congressional statement of findings and purpose
    for the research library resources strengthening program, prior to
    the general amendment of this subchapter by Pub. L. 96-374.
      Another prior section 1041, Pub. L. 89-329, title II, Sec. 231,
    Nov. 8, 1965, 79 Stat. 1228; Pub. L. 90-575, title II, Secs. 217,
    218, Oct. 16, 1968, 82 Stat. 1037; Pub. L. 92-318, title I, Sec.
    114(a), June 23, 1972, 86 Stat. 240, authorized appropriations for
    assistance to Library of Congress for acquisition of Library
    material, prior to the general amendment of former part C of this
    subchapter by Pub. L. 94-482, title I, Sec. 107, Oct. 12, 1976, 90
    Stat. 2090.
      A prior section 221 of Pub. L. 89-329 was classified to section
    1031 of this title, prior to repeal by Pub. L. 104-208.
      Another prior section 221 of Pub. L. 89-329 was classified to
    section 1031 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      Another prior section 221 of Pub. L. 89-329 was classified to
    section 1031 of this title, prior to repeal by Pub. L. 92-318.

                              EFFECTIVE DATE                          
      Part 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 a note under section 6301 of this
    title.

-End-



-CITE-
    20 USC Sec. 1042                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part B - Preparing Tomorrow's Teachers To Use Technology

-HEAD-
    Sec. 1042. Eligibility

-STATUTE-
    (a) Eligible applicants
      In order to receive a grant or enter into a contract or
    cooperative agreement under this part, an applicant shall be a
    consortium that includes the following:
        (1) At least one institution of higher education that awards
      baccalaureate degrees and prepares teachers for their initial
      entry into teaching.
        (2) At least one State educational agency or local educational
      agency.
        (3) One or more of the following entities:
          (A) An institution of higher education (other than the
        institution described in paragraph (1)).
          (B) A school or department of education at an institution of
        higher education.
          (C) A school or college of arts and sciences (as defined in
        section 1021(b) of this title) at an institution of higher
        education.
          (D) A professional association, foundation, museum, library,
        for-profit business, public or private nonprofit organization,
        community-based organization, or other entity, with the
        capacity to contribute to the technology-related reform of
        teacher preparation programs.
    (b) Application requirements
      In order to receive a grant or enter into a contract or
    cooperative agreement under this part, an eligible applicant shall
    submit an application to the Secretary at such time, in such
    manner, and containing such information as the Secretary may
    require. Such application shall include the following:
        (1) A description of the proposed project, including how the
      project would - 
          (A) ensure that individuals participating in the project
        would be prepared to use advanced technology to prepare all
        students, including groups of students who are underrepresented
        in technology-related fields and groups of students who are
        economically disadvantaged, to meet challenging State and local
        academic content and student academic achievement standards;
        and
          (B) improve the ability of at least one participating
        institution of higher education described in subsection (a)(1)
        of this section to ensure such preparation.

        (2) A demonstration of - 
          (A) the commitment, including the financial commitment, of
        each of the members of the consortium for the proposed project;
        and
          (B) the active support of the leadership of each organization
        that is a member of the consortium for the proposed project.

        (3) A description of how each member of the consortium will
      participate in project activities.
        (4) A description of how the proposed project will be continued
      after Federal funds are no longer awarded under this part for the
      project.
        (5) A plan for the evaluation of the project, which shall
      include benchmarks to monitor progress toward specific project
      objectives.
    (c) Matching requirements
      (1) In general
        The Federal share of the cost of any project funded under this
      part shall not exceed 50 percent. Except as provided in paragraph
      (2), the non-Federal share of the cost of such project may be
      provided in cash or in kind, fairly evaluated, including
      services.
      (2) Acquisition of equipment
        Not more than 10 percent of the funds awarded for a project
      under this part may be used to acquire equipment, networking
      capabilities, or infrastructure, and the non-Federal share of the
      cost of any such acquisition shall be provided in cash.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 222, as added Pub. L. 107-110,
    title X, Sec. 1051(3), Jan. 8, 2002, 115 Stat. 2081.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1042, Pub. L. 89-329, title II, Sec. 232, as
    added Pub. L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat.
    1386; amended Pub. L. 102-325, title II, Sec. 201, July 23, 1992,
    106 Stat. 471, required Secretary to endeavor to achieve broad and
    equitable geographical distribution of grants, prior to repeal by
    Pub. L. 104-208, div. A, title I, Sec. 101(e) [title VII, Sec.
    708(b)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-312.
      Another prior section 1042, Pub. L. 89-329, title II, Sec. 232,
    as added Pub. L. 94-482, title I, Sec. 107, Oct. 12, 1976, 90 Stat.
    2090; amended Pub. L. 96-49, Sec. 3(b), Aug. 13, 1979, 93 Stat.
    351, which authorized appropriations through fiscal year 1980, was
    omitted in the general amendment of this subchapter by Pub. L. 96-
    374.
      Another prior section 1042, Pub. L. 89-329, title II, Sec. 232,
    as added Pub. L. 92-318, title I, Sec. 115(a), June 23, 1972, 86
    Stat. 241, which required an evaluation and report to Congressional
    committees by the Librarian of the Congress, was omitted in the
    general amendment of former part C of this subchapter by Pub. L. 94-
    482, title I, Sec. 107, Oct. 12, 1976, 90 Stat. 2090.
      A prior section 222 of Pub. L. 89-329 was classified to section
    1032 of this title, prior to repeal by Pub. L. 104-208.
      Another prior section 222 of Pub. L. 89-329 was classified to
    section 1032 of this title, prior to repeal by Pub. L. 92-318.
      Another prior section 222 of Pub. L. 89-329 was classified to
    section 1033 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1043                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part B - Preparing Tomorrow's Teachers To Use Technology

-HEAD-
    Sec. 1043. Use of funds

-STATUTE-
    (a) Required uses
      A consortium that receives a grant or enters into a contract or
    cooperative agreement under this part shall use funds made
    available under this part for - 
        (1) a project creating one or more programs that prepare
      prospective teachers to use advanced technology to prepare all
      students, including groups of students who are underrepresented
      in technology-related fields and groups of students who are
      economically disadvantaged, to meet challenging State and local
      academic content and student academic achievement standards; and
        (2) evaluating the effectiveness of the project.
    (b) Permissible uses
      The consortium may use funds made available under this part for a
    project, described in the application submitted by the consortium
    under this part, that carries out the purpose of this part, such as
    the following:
        (1) Developing and implementing high-quality teacher
      preparation programs that enable educators - 
          (A) to learn the full range of resources that can be accessed
        through the use of technology;
          (B) to integrate a variety of technologies into curricula and
        instruction in order to expand students' knowledge;
          (C) to evaluate educational technologies and their potential
        for use in instruction;
          (D) to help students develop their technical skills; and
          (E) to use technology to collect, manage, and analyze data to
        improve teaching and decisionmaking.

        (2) Developing alternative teacher development paths that
      provide elementary schools and secondary schools with well-
      prepared, technology-proficient educators.
        (3) Developing achievement-based standards and assessments
      aligned with the standards to measure the capacity of prospective
      teachers to use technology effectively in their classrooms.
        (4) Providing technical assistance to entities carrying out
      other teacher preparation programs.
        (5) Developing and disseminating resources and information in
      order to assist institutions of higher education to prepare
      teachers to use technology effectively in their classrooms.
        (6) Subject to section 1042(c)(2) of this title, acquiring
      technology equipment, networking capabilities, infrastructure,
      software, and digital curricula to carry out the project.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 223, as added Pub. L. 107-110,
    title X, Sec. 1051(3), Jan. 8, 2002, 115 Stat. 2082.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1043, Pub. L. 89-329, title II, Sec. 233, as
    added Pub. L. 94-482, title I, Sec. 107, Oct. 12, 1976, 90 Stat.
    2090, related to eligibility for assistance under research library
    resources strengthening program, prior to the general amendment of
    this subchapter by Pub. L. 96-374.
      A prior section 223 of Pub. L. 89-329 was classified to section
    1033 of this title, prior to repeal by Pub. L. 104-208.
      Another prior section 223 of Pub. L. 89-329 was renumbered
    section 222, and was classified to section 1033 of this title,
    prior to the general amendment of this subchapter by Pub. L. 96-
    374.
      Another prior section 223 of Pub. L. 89-329 was classified to
    section 1034 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1044                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER II - TEACHER QUALITY ENHANCEMENT
    Part B - Preparing Tomorrow's Teachers To Use Technology

-HEAD-
    Sec. 1044. Authorization of appropriations

-STATUTE-
      There are authorized to be appropriated to carry out this part
    such sums as may be necessary for each of fiscal years 2002 and
    2003.

-SOURCE-
    (Pub. L. 89-329, title II, Sec. 224, as added Pub. L. 107-110,
    title X, Sec. 1051(3), Jan. 8, 2002, 115 Stat. 2083.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1044, Pub. L. 89-329, title II, Sec. 234, as
    added Pub. L. 94-482, title I, Sec. 107, Oct. 12, 1976, 90 Stat.
    2090, related to regional balance in allocation of funds, prior to
    the general amendment of this subchapter by Pub. L. 96-374.
      A prior section 224 of Pub. L. 89-329 was classified to section
    1034 of this title, prior to repeal by Pub. L. 104-208.
      Another prior section 224 of Pub. L. 89-329 was classified to
    section 1034 of this title, prior to repeal by Pub. L. 99-498.
      Another prior section 224 of Pub. L. 89-329 was renumbered
    section 223, and was classified to section 1034 of this title,
    prior to the general amendment of this subchapter by Pub. L. 96-
    374.
      Prior sections 1045 and 1046 were omitted in the general
    amendment of this subchapter by Pub. L. 96-374.
      Section 1045, Pub. L. 89-329, title II, Sec. 235, as added Pub.
    L. 94-482, title I, Sec. 107, Oct. 12, 1976, 90 Stat. 2091, set out
    limitations on grants as regards sectarian or religious use.
      Section 1046, Pub. L. 89-329, title II, Sec. 236, as added Pub.
    L. 94-482, title I, Sec. 107, Oct. 12, 1976, 90 Stat. 2091,
    required consultations by grantees with State agencies.
      A prior section 1047, Pub. L. 89-329, title II, Sec. 241, as
    added Pub. L. 99-498, title II, Sec. 207, Oct. 17, 1986, 100 Stat.
    1289; amended Pub. L. 102-325, title II, Sec. 201, July 23, 1992,
    106 Stat. 471; Pub. L. 103-208, Sec. 2(a)(3), Dec. 20, 1993, 107
    Stat. 2457, authorized Secretary to make grants to and enter into
    contracts with eligible institutions, library organizations or
    agencies to assist in strengthening library and information science
    programs and libraries in historically black colleges and
    universities and other minority-serving institutions, prior to
    repeal by Pub. L. 104-208, div. A, title I, Sec. 101(e) [title VII,
    Sec. 708(b)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-312.
      Another prior section 1047 and prior sections 1047a to 1047j were
    omitted in the general amendment of former part D of this
    subchapter by Pub. L. 99-498.
      Section 1047, Pub. L. 89-329, title II, Sec. 241, as added Pub.
    L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat. 1386, stated
    congressional declaration of purpose.
      Section 1047a, Pub. L. 89-329, title II, Sec. 242, as added Pub.
    L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat. 1387,
    established National Periodical System Corporation.
      Section 1047b, Pub. L. 89-329, title II, Sec. 243, as added Pub.
    L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat. 1387, related
    to functions of National Periodical System Corporation.
      Section 1047c, Pub. L. 89-329, title II, Sec. 244, as added Pub.
    L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat. 1387, related
    to board of directors of National Periodical System Corporation.
      Section 1047d, Pub. L. 89-329, title II, Sec. 245, as added Pub.
    L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat. 1388, related
    to director and staff of National Periodical System Corporation.
      Section 1047e, Pub. L. 89-329, title II, Sec. 246, as added Pub.
    L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat. 1388, related
    to nonprofit nature of National Periodical System Corporation.
      Section 1047f, Pub. L. 89-329, title II, Sec. 247, as added Pub.
    L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat. 1388, related
    to authority of National Periodical System Corporation.
      Section 1047g, Pub. L. 89-329, title II, Sec. 248, as added Pub.
    L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat. 1389, related
    to congressional approval of design for national periodical system.
      Section 1047h, Pub. L. 89-329, title II, Sec. 249, as added Pub.
    L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat. 1389, related
    to effect of former part D of this subchapter on copyright law.
      Section 1047i, Pub. L. 89-329, title II, Sec. 250, as added Pub.
    L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat. 1389, defined
    terms used in former part D of this subchapter.
      Section 1047j, Pub. L. 89-329, title II, Sec. 251, as added Pub.
    L. 96-374, title II, Sec. 201, Oct. 3, 1980, 94 Stat. 1390,
    authorized appropriations to carry out former part D of this
    subchapter.

-End-


-CITE-
    20 USC SUBCHAPTER III - INSTITUTIONAL AID                   01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER III - INSTITUTIONAL AID

-HEAD-
                    SUBCHAPTER III - INSTITUTIONAL AID                

-COD-
                               CODIFICATION                           
      Title III of the Higher Education Act of 1965, comprising this
    subchapter, was originally enacted by Pub. L. 89-329, title III,
    Nov. 8, 1965, 79 Stat. 1229, and amended by Pub. L. 89-752, Nov. 3,
    1966, 80 Stat. 1240; Pub. L. 90-575, Oct. 16, 1968, 82 Stat. 1014;
    Pub. L. 91-230, Apr. 13, 1970, 84 Stat. 121; Pub. L. 92-318, June
    23, 1972, 86 Stat. 235; Pub. L. 93-380, Aug. 21, 1974, 88 Stat.
    484; Pub. L. 94-482, Oct. 12, 1976, 90 Stat. 2081; Pub. L. 96-49,
    Aug. 13, 1979, 93 Stat. 351; Pub. L. 96-374, Oct. 3, 1980, 94 Stat.
    1367; Pub. L. 97-35, Aug. 13, 1981, 95 Stat. 357; Pub. L. 98-95,
    Sept. 26, 1983, 97 Stat. 708; Pub. L. 98-312, June 12, 1984, 98
    Stat. 233. Such title is shown herein, however, as having been
    added by Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100
    Stat. 1290, without reference to such intervening amendments
    because of the extensive revision of title III by Pub. L. 99-498.

-End-



-CITE-
    20 USC Sec. 1051                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER III - INSTITUTIONAL AID

-HEAD-
    Sec. 1051. Findings and purpose

-STATUTE-
    (a) Findings
      The Congress finds that - 
        (1) there are a significant number of institutions of higher
      education serving high percentages of minority students and
      students from low-income backgrounds, that face problems that
      threaten their ability to survive;
        (2) the problems relate to the management and fiscal operations
      of certain institutions of higher education, as well as to an
      inability to engage in long-range planning and development
      activities, including endowment building;
        (3) in order to be competitive and provide a high-quality
      education for all, institutions of higher education should
      improve their technological capacity and make effective use of
      technology;
        (4) the subchapter III program prior to 1985 did not always
      meet the specific development needs of historically Black
      colleges and universities and other institutions with large
      concentrations of minority, low-income students;
        (5) the solution of the problems of these institutions would
      enable them to become viable, fiscally stable and independent,
      thriving institutions of higher education;
        (6) providing assistance to eligible institutions will enhance
      the role of such institutions in providing access and quality
      education to low-income and minority students;
        (7) these institutions play an important role in the American
      system of higher education, and there is a strong national
      interest in assisting them in solving their problems and in
      stabilizing their management and fiscal operations, and in
      becoming financially independent; and
        (8) there is a particular national interest in aiding those
      institutions of higher education that have historically served
      students who have been denied access to postsecondary education
      because of race or national origin and whose participation in the
      American system of higher education is in the Nation's interest
      so that equality of access and quality of postsecondary education
      opportunities may be enhanced for all students.
    (b) Purpose
      It is the purpose of this subchapter to assist such institutions
    in equalizing educational opportunity through a program of Federal
    assistance.

-SOURCE-
    (Pub. L. 89-329, title III, Sec. 301, as added Pub. L. 99-498,
    title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1290; amended Pub.
    L. 102-325, title III, Sec. 301, July 23, 1992, 106 Stat. 472; Pub.
    L. 103-208, Sec. 2(a)(4), Dec. 20, 1993, 107 Stat. 2457; Pub. L.
    105-244, title III, Sec. 302, Oct. 7, 1998, 112 Stat. 1637.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1051, Pub. L. 89-329, title III, Sec. 301, as
    added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat.
    1390, stated Congressional findings and purposes for program of
    providing Federal assistance to institutions of higher education,
    prior to the general revision of this subchapter by Pub. L. 99-498.
      Another prior section 1051, Pub. L. 89-329, title III, Sec. 301,
    Nov. 8, 1965, 79 Stat. 1229; Pub. L. 89-752, Sec. 10, Nov. 3, 1966,
    80 Stat. 1243; Pub. L. 90-575, title II, Secs. 221, 222, Oct. 16,
    1968, 82 Stat. 1038; Pub. L. 92-318, title I, Sec. 121(a), June 23,
    1972, 86 Stat. 241; Pub. L. 94-482, title I, Sec. 111, Oct. 12,
    1976, 90 Stat. 2091; Pub. L. 96-49, Sec. 4, Aug. 13, 1979, 93 Stat.
    351, related to a program of special assistance to strengthen the
    academic quality of developing institutions, prior to the general
    revision of this subchapter by Pub. L. 96-374.
      Prior sections 1052 to 1056 were omitted in the general revision
    of this subchapter by Pub. L. 96-374.
      Section 1052, Pub. L. 89-329, title III, Sec. 302, Nov. 8, 1965,
    79 Stat. 1229; Pub. L. 92-318, title I, Sec. 121(a), June 23, 1972,
    86 Stat. 241; Pub. L. 93-380, title VIII, Sec. 832, Aug. 21, 1974,
    88 Stat. 603; Pub. L. 94-482, title I, Sec. 112, Oct. 12, 1976, 90
    Stat. 2091, related to eligibility for special assistance.
      Section 1053, Pub. L. 89-329, title III, Sec. 303, Nov. 8, 1965,
    79 Stat. 1230; Pub. L. 91-230, title IV, Sec. 401(h)(4), Apr. 13,
    1970, 84 Stat. 174; Pub. L. 92-318, title I, Sec. 121(a), title
    III, Sec. 301(a)(1), June 23, 1972, 86 Stat. 242, 326, provided for
    the establishment of an Advisory Council on Developing
    Institutions.
      Section 1054, Pub. L. 89-329, title III, Sec. 304, Nov. 8, 1965,
    79 Stat. 1230; Pub. L. 92-318, title I, Sec. 121(a), June 23, 1972,
    86 Stat. 243, authorized the Commissioner of Education to make
    grants and awards.
      Section 1055, Pub. L. 89-329, title III, Sec. 305, Nov. 8, 1965,
    79 Stat. 1231; Pub. L. 92-318, title I, Sec. 121(a), June 23, 1972,
    86 Stat. 244, related to assistance to developing institutions
    under other programs.
      Section 1056, Pub. L. 89-329, title III, Sec. 306, as added Pub
    L. 90-575, title II, Sec. 223(a), Oct. 16, 1968, 82 Stat. 1038;
    amended Pub. L. 92-318, title I, Sec. 121(a), June 23, 1972, 86
    Stat. 245, prohibited the use of funds for religious activities.

                                AMENDMENTS                            
      1998 - Pars. (3) to (8). Pub. L. 105-244 added par. (3) and
    redesignated former pars. (3) to (7) as (4) to (8), respectively.
      1993 - Subsec. (a)(2). Pub. L. 103-208 struck out the comma after
    "planning".
      1992 - Subsec. (a)(1). Pub. L. 102-325, Sec. 301(1), amended par.
    (1) generally. Prior to amendment, par. (1) read as follows: "many
    institutions of higher education in this era of declining
    enrollments and scarce resources face problems which threaten their
    ability to survive;".
      Subsec. (a)(2). Pub. L. 102-325, Sec. 301(2), struck out
    "recruitment activities," after "long-range planning,".
      Subsec. (a)(5). Pub. L. 102-325, Sec. 301(3), amended par. (5)
    generally. Prior to amendment, par. (5) read as follows: "providing
    a minimum level of assistance to all categories of eligible
    institutions will assure the continued participation of the
    institutions in the program established in this subchapter and
    enhance their role in providing access and quality education to low-
    income and minority 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                 
      Section 5 of Pub. L. 103-208 provided that:
      "(a) In general. - Except as otherwise provided therein or in
    subsection (b) of this section, the amendments made by section 2 of
    this Act [see Tables for classification] shall be effective as if
    such amendments were included in the Higher Education Amendments of
    1992 (Public Law 102-325), except that section 492 of the Act
    [section 1098a of this title] shall not apply to the amendments
    made by this Act [see Tables for classification].
      "(b) Exceptions. - 
        "(1) Effective on October 1, 1993. - The amendments made by the
      following subsections of section 2 of this Act shall be effective
      on and after October 1, 1993: (b)(29), (j)(28), (j)(36), and
      (j)(40) [amending sections 1070d-34, 1134e, 1134j, and 1134q of
      this title].
        "(2) Effective on date of enactment. - The amendments made by
      the following subsections of section 2 of this Act shall be
      effective on and after the date of enactment of this Act [Dec.
      20, 1993]: (b)(2), (b)(7), (b)(28), (c)(3), (c)(5), (c)(13)(B),
      (c)(13)(C), (c)(18), (c)(30), (c)(62) [amending sections 1070a,
      1070a-11, 1070d-33, 1075, 1077a, 1078, 1078-1, and 1085 of this
      title].
        "(3) Effective 30 days after enactment. - The amendments made
      by the following subsections of section 2 of this Act shall be
      effective on and after 30 days after the date of enactment of
      this Act [Dec. 20, 1993]: (c)(19), (c)(20), (c)(21), (c)(59)
      [amending sections 1078 and 1085 of this title].
        "(4) Effective 60 days after enactment. - The amendments made
      by the following subsections of section 2 of this Act shall be
      effective on and after 60 days after the date of enactment of
      this Act [Dec. 20, 1993]: (c)(31) and (c)(53) [amending sections
      1078-1 and 1083 of this title].
        "(5) Effective on April 1, 1994. - The amendments made by
      section 2(c)(43)(B) of this Act [amending section 1078-8 of this
      title] shall be effective on and after April 1, 1994.
        "(6) Effective on July 1, 1994. - The amendments made by the
      following subsection[s] of section 2 of this Act shall be
      effective on and after July 1, 1994: (b)(25), (c)(2), (c)(13)(A),
      (c)(29) [amending sections 1070b-2, 1075, 1078, and 1078-1 of
      this title].
        "(7) Cohort default data examinations. - The amendment made by
      section 2(c)(60)(A) [amending section 1085 of this title] shall
      be effective on and after October 1, 1994.
        "(8) Cohort default rate determinations. - The amendments made
      to subsection[s] (a)(3) and (m)(1)(B) of section 435 of this
      [the] Act [section 1085(a)(3) and (m)(1)(B) of this title] shall
      apply with respect to the determination (and appeals from
      determinations) of cohort default rates for fiscal year 1989 and
      any succeeding fiscal year."

                     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                          
      Section 301(b) of Pub. L. 99-498 provided that: "The amendment
    made by subsection (a) [enacting this subchapter] shall take effect
    July 1, 1987."

-End-


-CITE-
    20 USC Part A - Strengthening Institutions                  01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER III - INSTITUTIONAL AID
    Part A - Strengthening Institutions

-HEAD-
                    PART A - STRENGTHENING INSTITUTIONS                

-End-



-CITE-
    20 USC Sec. 1057                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER III - INSTITUTIONAL AID
    Part A - Strengthening Institutions

-HEAD-
    Sec. 1057. Program purpose

-STATUTE-
    (a) General authorization
      The Secretary shall carry out a program, in accordance with this
    part, to improve the academic quality, institutional management,
    and fiscal stability of eligible institutions, in order to increase
    their self-sufficiency and strengthen their capacity to make a
    substantial contribution to the higher education resources of the
    Nation.
    (b) Grants awarded; special consideration
      (1) From the sums available for this part under section
    1068h(a)(1) of this title, the Secretary may award grants to any
    eligible institution with an application approved under section
    1068 (!1) of this title in order to assist such an institution to
    plan, develop, or implement activities that promise to strengthen
    the institution.

      (2) Special consideration shall be given to any eligible
    institution - 
        (A) which has endowment funds (other than any endowment fund
      built under section 1065 of this title as in effect on September
      30, 1986, and under part B of this subchapter) the market value
      of which, per full-time equivalent student, is less than the
      average current market value of the endowment funds, per full-
      time equivalent student (other than any endowment fund built
      under section 1065 of this title as in effect on September 30,
      1986, and under part B of this subchapter) at similar
      institutions; or
        (B) which has expenditures per full-time equivalent student for
      library materials which is less than the average of the
      expenditures for library materials per full-time equivalent
      student by other similarly situated institutions.

      (3) Special consideration shall be given to applications which
    propose, pursuant to the institution's plan, to engage in - 
        (A) faculty development;
        (B) funds and administrative management;
        (C) development and improvement of academic programs;
        (D) acquisition of equipment for use in strengthening funds
      management and academic programs;
        (E) joint use of facilities such as libraries and laboratories;
      and
        (F) student services.
    (c) Authorized activities
      Grants awarded under this section shall be used for 1 or more of
    the following activities:
        (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
      classrooms, libraries, laboratories, and other instructional
      facilities, including the integration of computer technology into
      institutional facilities to create smart buildings.
        (3) Support of faculty exchanges, faculty development, and
      faculty fellowships to assist in attaining advanced degrees in
      the field of instruction of the faculty.
        (4) Development and improvement of academic programs.
        (5) Purchase of library books, periodicals, and other
      educational materials, including telecommunications program
      material.
        (6) Tutoring, counseling, and student service programs designed
      to improve academic success.
        (7) Funds management, 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 improving an endowment fund.
        (11) Creating or improving facilities for Internet or other
      distance learning academic instruction capabilities, including
      purchase or rental of telecommunications technology equipment or
      services.
        (12) Other activities proposed in the application submitted
      pursuant to subsection (c) (!2) that - 

          (A) contribute to carrying out the purposes of the program
        assisted under this part; and
          (B) are approved by the Secretary as part of the review and
        acceptance of such application.
    (d) Endowment fund
      (1) In general
        An eligible institution may use not more than 20 percent of the
      grant funds provided under this part to establish or increase an
      endowment fund at such 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).

-SOURCE-
    (Pub. L. 89-329, title III, Sec. 311, as added Pub. L. 99-498,
    title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1291; amended Pub.
    L. 100-50, Sec. 2(a)(1), June 3, 1987, 101 Stat. 335; Pub. L. 105-
    244, title III, Secs. 301(c)(1), 303(a), Oct. 7, 1998, 112 Stat.
    1636, 1638.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1068 of this title, referred to in subsec. (b)(1), was in
    the original a reference to section 351 of Pub. L. 89-329 which was
    translated as if it referred to section 391 of Pub. L. 89-329 to
    reflect the probable intent of Congress. Pub. L. 105-244, title
    III, Sec. 301(a)(2), (7), Oct. 7, 1998, 112 Stat. 1636, renumbered
    sections 351 and 1021 of Pub. L. 89-329 as sections 391 and 351,
    respectively, of Pub. L. 89-329, and those sections are classified
    to sections 1067a and 1068, respectively, of this title.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1057, Pub. L. 89-329, title III, Sec. 311, as
    added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat.
    1391, enumerated purposes and established grant authority for
    program to strengthen eligible institutions, prior to the general
    revision of this subchapter by Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Subsec. (b)(1). Pub. L. 105-244, Sec. 301(c)(1),
    substituted "section 1068h(a)(1)" for "section 1069f(a)(1)".
      Subsecs. (c), (d). Pub. L. 105-244, Sec. 303(a), added subsecs.
    (c) and (d).
      1987 - Subsec. (b)(1). Pub. L. 100-50 substituted "section
    1069f(a)(1) of this title" for "section 1069d(a)(1) 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 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.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) So in original.


-End-



-CITE-
    20 USC Sec. 1058                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER III - INSTITUTIONAL AID
    Part A - Strengthening Institutions

-HEAD-
    Sec. 1058. Definitions; eligibility

-STATUTE-
    (a) Educational and general expenditures
      For the purpose of this part, the term "educational and general
    expenditures" means the total amount expended by an institution of
    higher education for instruction, research, public service,
    academic support (including library expenditures), student
    services, institutional support, scholarships and fellowships,
    operation and maintenance expenditures for the physical plant, and
    any mandatory transfers which the institution is required to pay by
    law.
    (b) Eligible institution
      For the purpose of this part, the term "eligible institution"
    means - 
        (1) an institution of higher education - 
          (A) which has an enrollment of needy students as required by
        subsection (c) (!1) of this section;

          (B) except as provided in section 1068a(b) of this title, the
        average educational and general expenditures of which are low,
        per full-time equivalent undergraduate student, in comparison
        with the average educational and general expenditures per full-
        time equivalent undergraduate student of institutions that
        offer similar instruction;
          (C) which is - 
            (i) legally authorized to provide, and provides within the
          State, an educational program for which such institution
          awards a bachelor's degree;
            (ii) a junior or community college; or
            (iii) the College of the Marshall Islands, the College of
          Micronesia/Federated States of Micronesia, and Palau
          Community College;

          (D) which is accredited by a nationally recognized
        accrediting agency or association determined by the Secretary
        to be reliable authority as to the quality of training offered
        or which is, according to such an agency or association, making
        reasonable progress toward accreditation;
          (E) which meets such other requirements as the Secretary may
        prescribe; and
          (F) located in a State; and

        (2) any branch of any institution of higher education described
      under paragraph (1) which by itself satisfies the requirements
      contained in subparagraphs (A) and (B) of such paragraph.

    For purposes of the determination of whether an institution is an
    eligible institution under this paragraph, the factor described
    under paragraph (1)(A) shall be given twice the weight of the
    factor described under paragraph (1)(B).
    (c) Endowment fund
      For the purpose of this part, the term "endowment fund" means a
    fund that - 
        (1) is established by State law, by an institution of higher
      education, or by a foundation that is exempt from Federal income
      taxation;
        (2) is maintained for the purpose of generating income for the
      support of the institution; and
        (3) does not include real estate.
    (d) Enrollment of needy students
      For the purpose of this part, the term "enrollment of needy
    students" means an enrollment at an institution of higher education
    or a junior or community college which includes - 
        (1) at least 50 percent of the degree students so enrolled who
      are receiving need-based assistance under subchapter IV of this
      chapter and part C of subchapter I of chapter 34 of title 42 in
      the second fiscal year preceding the fiscal year for which the
      determination is being made (other than loans for which an
      interest subsidy is paid pursuant to section 1078 of this title),
      or
        (2) a substantial percentage of students receiving Pell Grants
      in the second fiscal year preceding the fiscal year for which
      determination is being made, in comparison with the percentage of
      students receiving Pell Grants at all such institutions in the
      second fiscal year preceding the fiscal year for which the
      determination is made, unless the requirement of this subdivision
      is waived under section 1068a(a) of this title.
    (e) Full-time equivalent students
      For the purpose of this part, the term "full-time equivalent
    students" means the sum of the number of students enrolled full
    time at an institution, plus the full-time equivalent of the number
    of students enrolled part time (determined on the basis of the
    quotient of the sum of the credit hours of all part-time students
    divided by 12) at such institution.
    (f) Junior or community college
      For the purpose of this part, the term "junior or community
    college" means an institution of higher education - 
        (1) that admits as regular students persons who are beyond the
      age of compulsory school attendance in the State in which the
      institution is located and who have the ability to benefit from
      the training offered by the institution;
        (2) that does not provide an educational program for which it
      awards a bachelor's degree (or an equivalent degree); and
        (3) that - 
          (A) provides an educational program of not less than 2 years
        that is acceptable for full credit toward such a degree, or
          (B) offers a 2-year program in engineering, mathematics, or
        the physical or biological sciences, designed to prepare a
        student to work as a technician or at the semiprofessional
        level in engineering, scientific, or other technological fields
        requiring the understanding and application of basic
        engineering, scientific, or mathematical principles of
        knowledge.
    (g) Historically black college or university
      For the purposes of this section, no historically black college
    or university which is eligible for and receives funds under part B
    of this subchapter is eligible for or may receive funds under this
    part.

-SOURCE-
    (Pub. L. 89-329, title III, Sec. 312, as added Pub. L. 99-498,
    title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1292; amended Pub.
    L. 100-50, Sec. 2(a)(2)-(6), June 3, 1987, 101 Stat. 335; Pub. L.
    100-369, Sec. 10(a), July 18, 1988, 102 Stat. 837; Pub. L. 102-325,
    title III, Sec. 302(a), (b), July 23, 1992, 106 Stat. 472; Pub. L.
    103-208, Sec. 2(a)(5), Dec. 20, 1993, 107 Stat. 2457; Pub. L. 103-
    382, title III, Sec. 353, Oct. 20, 1994, 108 Stat. 3966; Pub. L.
    105-244, title III, Secs. 301(c)(2), 303(b), Oct. 7, 1998, 112
    Stat. 1636, 1639.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Subsection (c) of this section, referred to in subsec. (b)(1)(A),
    was redesignated subsec. (d) of this section and a new subsec. (c)
    was added by Pub. L. 105-244, title III, Sec. 303(b), Oct. 7, 1998,
    112 Stat. 1639.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1058, Pub. L. 89-329, title III, Sec. 312, as
    added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat.
    1391, defined terms used in this subchapter, prior to the general
    revision of this subchapter by Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Subsec. (b)(1)(B). Pub. L. 105-244, Sec. 301(c)(2)(A),
    substituted "section 1068a(b)" for "section 1067(b)".
      Subsec. (c). Pub. L. 105-244, Sec. 303(b)(2), added subsec. (c).
    Former subsec. (c) redesignated (d).
      Subsec. (c)(2). Pub. L. 105-244, Sec. 301(c)(2)(B), substituted
    "section 1068a(a)" for "section 1067(a)".
      Subsecs. (d) to (g). Pub. L. 105-244, Sec. 303(b)(1),
    redesignated subsecs. (c) to (f) as (d) to (g), respectively.
      1994 - Subsec. (b)(1)(C). Pub. L. 103-382, Sec. 353(1), amended
    subpar. (C) generally. Prior to amendment, subpar. (C) read as
    follows: "(C)(i) which is legally authorized to provide, and
    provides within the State, an educational program for which it
    awards a bachelor's degree, or (ii) which is a junior or community
    college;".
      Subsec. (b)(1)(F). Pub. L. 103-382, Sec. 353(2), (3), added
    subpar. (F).
      1993 - Subsec. (c)(2). Pub. L. 103-208 inserted "the" after "such
    institutions in".
      1992 - Subsec. (b)(1), (2). Pub. L. 102-325, Sec. 302(a)(1), (2),
    inserted "and" at end of subpar. (D), struck out subpar. (E),
    redesignated subpar. (F) as (E) and inserted "and" at end, and
    substituted period for semicolon at end of par. (2). Prior to
    amendment, subpar. (E) of par. (1) read as follows: "except as
    provided in section 1067(b) of this title which has, during the 5
    academic years preceding the academic year for which it seeks
    assistance under this part - 
        "(i) met the requirement of either subparagraph (C)(i) or
      (C)(ii), or of both such subparagraphs (simultaneously or
      consecutively); and
        "(ii) met the requirement of subparagraph (D); and".
      Subsec. (b)(3) to (5). Pub. L. 102-325, Sec. 302(a)(3), struck
    out pars. (3) to (5) which read as follows:
      "(3) any institution of higher education which has an enrollment
    of which at least 20 percent are Mexican American, Puerto Rican,
    Cuban, or other Hispanic students, or combination thereof, and
    which also satisfies the requirements of subparagraphs (A), (B),
    (C), and (D) of paragraph (1);
      "(4) any institution of higher education which has an enrollment
    of at least 60 percent American Indian, or in the case of Alaska
    natives, an enrollment of at least 5 percent, and which also
    satisfies the requirements of subparagraphs (A), (B), (C), and (D)
    of paragraph (1); and
      "(5) any institution of higher education which has an enrollment
    of which at least 5 percent are Native Hawaiian, Asian American,
    American Samoan, Micronesian, Guamian (Chamorro), and Northern
    Marianian, or any combination thereof, and which also satisfies the
    requirements of subparagraphs (A), (B), (C), and (D) of paragraph
    (1)."
      Subsec. (c)(2). Pub. L. 102-325, Sec. 302(b), substituted "second
    fiscal year preceding the fiscal year for which the determination
    is made, unless the requirement" for "second preceding fiscal year,
    unless the requirement".
      1988 - Subsec. (f). Pub. L. 100-369 added subsec. (f).
      1987 - Subsec. (b)(1)(C), (D). Pub. L. 100-50, Sec. 2(a)(2)(A),
    inserted "which" before "is" wherever appearing.
      Subsec. (b)(1)(E). Pub. L. 100-50, Sec. 2(a)(2)(B), inserted
    "which" before "has".
      Subsec. (b)(1)(F). Pub. L. 100-50, Sec. 2(a)(2)(C), inserted
    "which" before "meets".
      Subsec. (b)(3), (5). Pub. L. 100-50, Sec. 2(a)(3), (4),
    substituted "subparagraphs (A), (B), (C), and (D)" for
    "subparagraphs (A) and (B)".
      Subsec. (c)(1). Pub. L. 100-50, Sec. 2(a)(5), inserted "in the
    second fiscal year preceding the fiscal year for which the
    determination is being made" after "chapter 34 of title 42".
      Subsec. (c)(2). Pub. L. 100-50, Sec. 2(a)(6), substituted "fiscal
    year preceding the fiscal year for which determination is being
    made" for "preceding fiscal year" and "second preceding fiscal
    year" for "such fiscal year".

                     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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1059                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER III - INSTITUTIONAL AID
    Part A - Strengthening Institutions

-HEAD-
    Sec. 1059. Duration of grant

-STATUTE-
    (a) Award period
      The Secretary may award a grant to an eligible institution under
    this part for 5 years.
    (b) Limitations
      In awarding grants under this part the Secretary shall give
    priority to applicants who are not already receiving a grant under
    this part, except that for the purpose of this subsection a grant
    under subsection (c) of this section and a grant under section
    1068c(a)(1) of this title shall not be considered a grant under
    this part.
    (c) Planning grants
      Notwithstanding subsection (a) of this section, the Secretary may
    award a grant to an eligible institution under this part for a
    period of one year for the purpose of preparation of plans and
    applications for a grant under this part.
    (d) Wait-out-period
      Each eligible institution that received a grant under this part
    for a 5-year period shall not be eligible to receive an additional
    grant under this part until 2 years after the date on which the 5-
    year grant period terminates.

-SOURCE-
    (Pub. L. 89-329, title III, Sec. 313, as added Pub. L. 99-498,
    title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1294; amended Pub.
    L. 102-325, title III, Sec. 302(c), July 23, 1992, 106 Stat. 472;
    Pub. L. 103-208, Sec. 2(a)(6), Dec. 20, 1993, 107 Stat. 2457; Pub.
    L. 105-244, title III, Secs. 301(c)(3), 303(c), Oct. 7, 1998, 112
    Stat. 1637, 1639.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1059, Pub. L. 89-329, title III, Sec. 313, as
    added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat.
    1392, provided for duration of grants under this part, prior to the
    general revision of this subchapter by Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Subsec. (b). Pub. L. 105-244, Sec. 303(c)(1), inserted
    "subsection (c) of this section and a grant under" after "this
    subsection a grant under".
      Pub. L. 105-244, Sec. 301(c)(3), substituted "section
    1068c(a)(1)" for "section 1069(a)(1)".
      Subsec. (d). Pub. L. 105-244, Sec. 303(c)(2), added subsec. (d).
      1993 - Subsec. (b). Pub. L. 103-208 inserted before period at end
    ", except that for the purpose of this subsection a grant under
    section 1069(a)(1) of this title shall not be considered a grant
    under this part".
      1992 - Subsecs. (a), (b). Pub. L. 102-325 amended subsecs. (a)
    and (b) generally, substituting present provisions for provisions
    which related: in subsec. (a), to the awarding of grants for not to
    exceed 3, 4, or 5 years; and in subsec. (b), to waiting periods for
    awarding of subsequent 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.

                     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.

-End-



-CITE-
    20 USC Sec. 1059a                                           01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1059b                                           01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1059c                                           01/03/2007

-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.


-MISC1-
                                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.

-End-



-CITE-
    20 USC Sec. 1059d                                           01/03/2007

-EXPCITE-
    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.

-End-


-CITE-
    20 USC Part B - Strengthening Historically Black Colleges
                     and Universities                      01/03/2007

-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

-End-



-CITE-
    20 USC Sec. 1060                                            01/03/2007

-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.


-MISC1-
                             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
    U.S.C. App.], 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, 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, 2005, by Ex.
    Ord. No. 13316, Sept. 17, 2003, 68 F.R. 55255, 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, 2007, by Ex.
    Ord. No. 13385, Sept. 29, 2005, 70 F.R. 57989, 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.

-End-



-CITE-
    20 USC Sec. 1061                                            01/03/2007

-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,,(!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.

        (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".

-FOOTNOTE-
    (!1) So in original.


-End-



-CITE-
    20 USC Sec. 1062                                            01/03/2007

-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) (!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:

        (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.


-MISC1-
                             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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1063                                            01/03/2007

-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)
    (!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)).

    (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.


-MISC1-
                             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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1063a                                           01/03/2007

-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) (!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 -
    

        (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.


-MISC1-
                                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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1063b                                           01/03/2007

-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 (!1)

          (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) (!2) pursuant to a formula
      developed by the Secretary that uses the following elements:

          (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."

-FOOTNOTE-               

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

    (!2) So in original. Probably should be "subparagraphs (A) to
         (R) of subsection (e)(1) of this section".


-End-



-CITE-
    20 USC Sec. 1063c                                           01/03/2007

-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.

-End-


-CITE-
    20 USC Part C - Endowment Challenge Grants for
                     Institutions Eligible for
                     Assistance Under Part A or Part B     01/03/2007

-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

-End-



-CITE-
    20 USC Sec. 1064                                            01/03/2007

-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.

-MISC1-
    Sec. 1064. Repealed. Pub. L. 102-325, title III, Sec. 304(a)(2),
      July 23, 1992, 106 Stat. 476.
      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.

-End-



-CITE-
    20 USC Sec. 1065                                            01/03/2007

-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.

-End-


-CITE-
    20 USC Part D - Historically Black College and University
                     Capital Financing                     01/03/2007

-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.


-MISC1-
                             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.

-End-



-CITE-
    20 USC Sec. 1066                                            01/03/2007

-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.


-MISC1-
                             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.

-End-



-CITE-
    20 USC Sec. 1066a                                           01/03/2007

-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,,(!1) research
        instrumentation, and any capital equipment or fixture related
        to facilities described in subparagraph (A);

          (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, Secs. 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.


-MISC1-
                             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.

-FOOTNOTE-
    (!1) So in original.


-End-



-CITE-
    20 USC Sec. 1066b                                           01/03/2007

-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 (!1) of this title and the designated bonding authority
    agrees in such agreement to - 

        (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, Secs. 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.


-MISC1-
                             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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1066c                                           01/03/2007

-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.


-MISC1-
                             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.

-End-



-CITE-
    20 USC Sec. 1066d                                           01/03/2007

-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, Secs. 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.


-MISC1-
                             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.

-End-



-CITE-
    20 USC Sec. 1066e                                           01/03/2007

-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.

-MISC1-
    Sec. 1066e. Repealed. Pub. L. 105-244, title III, Sec. 306(d), Oct.
      7, 1998, 112 Stat. 1647.
      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.


-MISC1-
                         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.

-End-



-CITE-
    20 USC Sec. 1066f                                           01/03/2007

-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, Secs. 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.


-MISC1-
                             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.

-End-



-CITE-
    20 USC Sec. 1066g                                           01/03/2007

-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.


-MISC1-
                                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.

-End-


-CITE-
    20 USC Part E - Minority Science and Engineering
                     Improvement Program                   01/03/2007

-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   

-End-


-CITE-
    20 USC subpart 1 - minority science and engineering
           improvement program                             01/03/2007

-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, Secs. 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.

-End-



-CITE-
    20 USC Sec. 1067                                            01/03/2007

-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, Secs.
    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.

-End-



-CITE-
    20 USC Sec. 1067a                                           01/03/2007

-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) (!1) of
    this title.

    (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.


-MISC1-
                             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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1067b                                           01/03/2007

-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.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 352 of Pub. L. 89-329 was renumbered section 392
    and is classified to section 1068a of this title.

-End-



-CITE-
    20 USC Sec. 1067c                                           01/03/2007

-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.


-MISC1-
                             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.

-End-



-CITE-
    20 USC Sec. 1067d                                           01/03/2007

-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.

-End-


-CITE-
    20 USC subpart 2 - administrative and general provisions    01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1067g                                           01/03/2007

-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, Secs. 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.


-MISC1-
                                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.

-End-



-CITE-
    20 USC Sec. 1067h                                           01/03/2007

-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.


-MISC1-
                                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.

-End-



-CITE-
    20 USC Sec. 1067i                                           01/03/2007

-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.


-MISC1-
                                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.

-End-



-CITE-
    20 USC Sec. 1067j                                           01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1067k                                           01/03/2007

-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, Secs. 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.


-MISC1-
                                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.

-End-



-CITE-
    20 USC Sec. 1067l                                           01/03/2007

-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.

-MISC1-
    Sec. 1067l. Repealed. Pub. L. 105-244, title III, Sec. 301(a)(8),
      Oct. 7, 1998, 112 Stat. 1636.
      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.


-MISC1-
                         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.

-End-


-CITE-
    20 USC Part F - General Provisions                          01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1068                                            01/03/2007

-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, Secs. 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.


-MISC1-
                             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, Secs. 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.

-End-



-CITE-
    20 USC Sec. 1068a                                           01/03/2007

-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.(!1)

      (2) Omitted.
      (3) The Secretary may waive the requirement set forth in section
    1058(b)(1)(E) (!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.


-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, Secs. 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.


-MISC1-
                                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.

-FOOTNOTE-               

    (!1) So in original. Probably should be "part."

    (!2) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1068b                                           01/03/2007

-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,
    Secs. 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.


-MISC1-
                                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.

-End-



-CITE-
    20 USC Sec. 1068c                                           01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1068d                                           01/03/2007

-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,
    Secs. 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.


-MISC1-
                                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.

-End-



-CITE-
    20 USC Sec. 1068e                                           01/03/2007

-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 (!1) of this title may
    not be used - 

        (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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1068f                                           01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1068g                                           01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1068h                                           01/03/2007

-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, Secs. 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.


-MISC1-
                             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.

-End-


-CITE-
    20 USC SUBCHAPTER IV - STUDENT ASSISTANCE                   01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE

-HEAD-
                    SUBCHAPTER IV - STUDENT ASSISTANCE                

-End-


-CITE-
    20 USC Part A - Grants to Students in Attendance at
                     Institutions of Higher Education      01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070                                            01/03/2007

-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. 108-76, Aug. 18, 2003, 117 Stat. 904, as amended by Pub.
    L. 109-78, Sec. 1, Sept. 30, 2005, 119 Stat. 2043, provided that:

      "SECTION 1. SHORT TITLE; FINDINGS; REFERENCE.
      "(a) Short Title. - This Act may be cited as the 'Higher
    Education Relief Opportunities for Students Act of 2003'.
      "(b) Findings. - The Congress finds the following:
        "(1) There is no more important cause than that of our nation's
      defense.
        "(2) The United States will protect the freedom and secure the
      safety of its citizens.
        "(3) The United States military is the finest in the world and
      its personnel are determined to lead the world in pursuit of
      peace.
        "(4) Hundreds of thousands of Army, Air Force, Marine Corps,
      Navy, and Coast Guard reservists and members of the National
      Guard have been called to active duty or active service.
        "(5) The men and women of the United States military put their
      lives on hold, leave their families, jobs, and postsecondary
      education in order to serve their country and do so with
      distinction.
        "(6) There is no more important cause for this Congress than to
      support the members of the United States military and provide
      assistance with their transition into and out of active duty and
      active service.
      "(c) Reference. - References in this Act to 'the Act' are
    references to the Higher Education Act of 1965 (20 U.S.C. 1001 et
    seq. [and 42 U.S.C. 2751 et seq.]).

      "SEC. 2. WAIVER AUTHORITY FOR RESPONSE TO MILITARY CONTINGENCIES
        AND NATIONAL EMERGENCIES.
      "(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 assistance programs
      under title IV of the Act [20 U.S.C. 1070 et seq., 42 U.S.C. 2751
      et seq.] as the Secretary deems necessary in connection with a
      war or other military operation or 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) recipients of student financial assistance under title
        IV of the Act who are affected individuals are not placed in a
        worse position financially in relation to that financial
        assistance because of their status as affected individuals;
          "(B) administrative requirements placed on affected
        individuals who are recipients of student financial assistance
        are minimized, to the extent possible without impairing the
        integrity of the student financial assistance programs, to ease
        the burden on such students 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 Act 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;
          "(D) the calculation under section 484B(b)(2) of the Act (20
        U.S.C. 1091b(b)(2)) of the amount a student is required to
        return in the case of an affected individual may be modified so
        that no overpayment will be required to be returned or repaid
        if the institution has documented (i) the student's status as
        an affected individual in the student's file, and (ii) the
        amount of any overpayment discharged; and
          "(E) institutions of higher education, eligible lenders,
        guaranty agencies, and other entities participating in the
        student assistance programs under title IV of the Act that are
        located in areas that are declared disaster areas by any
        Federal, State or local official in connection with a national
        emergency, or whose operations are significantly affected by
        such a disaster, may be granted temporary relief from
        requirements that are rendered infeasible or unreasonable by a
        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 Act [20 U.S.C. 1070 et seq., 42 U.S.C. 2751 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 affected individuals
      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 active duty
      or active service; and
        "(2) if affected individuals withdraw from a course of study as
      a result of such active duty or active 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.
      "A financial aid administrator shall be considered to be making a
    necessary adjustment in accordance with section 479A(a) of the Act
    [20 U.S.C. 1087tt(a)] if the administrator makes adjustments with
    respect to the calculation of the expected student or parent
    contribution (or both) of an affected individual, and adequately
    documents the need for the adjustment.

      "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 a war or other military
        operation or national emergency;
          "(B) is performing qualifying National Guard duty during a
        war or other military operation or 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 a national emergency; or
          "(D) suffered direct economic hardship as a direct result of
        a war or other military operation or national emergency, as
        determined by the Secretary.
        "(3) Military operation. - The term 'military operation' means
      a contingency operation as such term is defined in section
      101(a)(13) of title 10, United States Code.
        "(4) National emergency. - The term 'national emergency' means
      a national emergency declared by the President of the United
      States.
        "(5) Serving on active duty. - The term 'serving on active duty
      during a war or other military operation or 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 a war or other military operation or
        national emergency, 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 war, operation, or 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) Qualifying national guard duty. - The term 'qualifying
      National Guard duty during a war or other military operation or
      national emergency' means service as a member of the National
      Guard on full-time National Guard duty (as defined in section
      101(d)(5) of title 10, United States Code) under a call to active
      service authorized by the President or the Secretary of Defense
      for a period of more than 30 consecutive days under section
      502(f) of title 32, United States Code, in connection with a war,
      another military operation, or a national emergency declared by
      the President and supported by Federal funds.

      "SEC. 6. TERMINATION OF AUTHORITY.
      "The provisions of this Act shall cease to be effective at the
    close of September 30, 2007."
      Pub. L. 107-122, Jan. 15, 2002, 115 Stat. 2386, known as the
    Higher Education Relief Opportunities for Students Act of 2001,
    authorized the Secretary of Education to waive or modify statutory
    or regulatory provisions applicable to the student financial aid
    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.) as deemed necessary
    because of a national emergency, provided sense of Congress as to
    tuition refunds from institutions of postsecondary education, and
    provided that the Act ceased to be effective Sept. 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, Secs. 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 (Secs. 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."

-End-


-CITE-
    20 USC subpart 1 - federal pell grants                      01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a                                           01/03/2007

-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,,(!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.

      (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 (!2) of
    this title.

      (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,
    Secs. 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 (Secs. 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.


-MISC1-
                             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)".

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     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 (Secs. 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. 109-149, title III, Dec. 30, 2005, 119 Stat. 2868.
      Pub. L. 108-447, div. F, title III, Dec. 8, 2004, 118 Stat. 3148.
      Pub. L. 108-199, div. E, title III, Jan. 23, 2004, 118 Stat. 261.
      Pub. L. 108-7, div. G, title III, Feb. 20, 2003, 117 Stat. 330.
      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.

-FOOTNOTE-
    (!1) So in original.

    (!2) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1070a-1                                         01/03/2007

-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. Academic competitiveness grants

-STATUTE-
    (a) Academic Competitiveness Grant program
      (1) Academic competitiveness grants authorized
        The Secretary shall award grants, in the amounts specified in
      subsection (d)(1), to eligible students to assist the eligible
      students in paying their college education expenses.
      (2) Academic Competitiveness Council
        (A) Establishment
          There is established an Academic Competitiveness Council
        (referred to in this paragraph as the "Council"). From the
        funds made available under subsection (e) for fiscal year 2006,
        $50,000 shall be available to the Council to carry out the
        duties described in subparagraph (B). The Council shall be
        chaired by the Secretary of Education, and the membership of
        the Council shall consist of officials from Federal agencies
        with responsibilities for managing existing Federal programs
        that promote mathematics and science (or designees of such
        officials with significant decision-making authority).
        (B) Duties
          The Council shall - 
            (i) identify all Federal programs with a mathematics or
          science focus;
            (ii) identify the target populations being served by such
          programs;
            (iii) determine the effectiveness of such programs;
            (iv) identify areas of overlap or duplication in such
          programs; and
            (v) recommend ways to efficiently integrate and coordinate
          such programs.
        (C) Report
          Not later than one year after February 8, 2006, the Council
        shall transmit a report to each committee of Congress with
        jurisdiction over a Federal program identified under
        subparagraph (B)(i), detailing the findings and recommendations
        under subparagraph (B), including recommendations for
        legislative or administrative action.
    (b) Designation
      A grant under this section - 
        (1) for the first or second academic year of a program of
      undergraduate education shall be known as an "Academic
      Competitiveness Grant"; and
        (2) for the third or fourth academic year of a program of
      undergraduate education shall be known as a "National Science and
      Mathematics Access to Retain Talent Grant" or a "National SMART
      Grant".
    (c) Definition of eligible student
      In this section the term "eligible student" means a full-time
    student who, for the academic year for which the determination of
    eligibility is made - 
        (1) is a citizen of the United States;
        (2) is eligible for a Federal Pell Grant; and
        (3) in the case of a student enrolled or accepted for
      enrollment in - 
          (A) the first academic year of a program of undergraduate
        education at a two- or four-year degree-granting institution of
        higher education - 
            (i) has successfully completed, after January 1, 2006, a
          rigorous secondary school program of study established by a
          State or local educational agency and recognized as such by
          the Secretary; and
            (ii) has not been previously enrolled in a program of
          undergraduate education;

          (B) the second academic year of a program of undergraduate
        education at a two- or four-year degree-granting institution of
        higher education - 
            (i) has successfully completed, after January 1, 2005, a
          rigorous secondary school program of study established by a
          State or local educational agency and recognized as such by
          the Secretary; and
            (ii) has obtained a cumulative grade point average of at
          least 3.0 (or the equivalent as determined under regulations
          prescribed by the Secretary) at the end of the first academic
          year of such program of undergraduate education; or

          (C) the third or fourth academic year of a program of
        undergraduate education at a four-year degree-granting
        institution of higher education - 
            (i) is pursuing a major in - 
              (I) the physical, life, or computer sciences,
            mathematics, technology, or engineering (as determined by
            the Secretary pursuant to regulations); or
              (II) a foreign language that the Secretary, in
            consultation with the Director of National Intelligence,
            determines is critical to the national security of the
            United States; and

            (ii) has obtained a cumulative grade point average of at
          least 3.0 (or the equivalent as determined under regulations
          prescribed by the Secretary) in the coursework required for
          the major described in clause (i).
    (d) Grant award
      (1) Amounts
        (A) The Secretary shall award a grant under this section in the
      amount of - 
          (i) $750 for an eligible student under subsection (c)(3)(A);
          (ii) $1,300 for an eligible student under subsection
        (c)(3)(B); or
          (iii) $4,000 for an eligible student under subsection
        (c)(3)(C).

        (B) Notwithstanding subparagraph (A) - 
          (i) the amount of such grant, in combination with the Federal
        Pell Grant assistance and other student financial assistance
        available to such student, shall not exceed the student's cost
        of attendance;
          (ii) if the amount made available under subsection (e) for
        any fiscal year is less than the amount required to be provided
        grants to all eligible students in the amounts determined under
        subparagraph (A) and clause (i) of this subparagraph, then the
        amount of the grant to each eligible student shall be ratably
        reduced; and
          (iii) if additional amounts are appropriated for any such
        fiscal year, such reduced amounts shall be increased on the
        same basis as they were reduced.
      (2) Limitations
        The Secretary shall not award a grant under this section - 
          (A) to any student for an academic year of a program of
        undergraduate education described in subparagraph (A), (B), or
        (C) of subsection (c)(3) for which the student received credit
        before February 8, 2006; or
          (B) to any student for more than - 
            (i) one academic year under subsection (c)(3)(A);
            (ii) one academic year under subsection (c)(3)(B); or
            (iii) two academic years under subsection (c)(3)(C).
    (e) Funding
      (1) Authorization and appropriation of funds
        There are authorized to be appropriated, and there are
      appropriated, out of any money in the Treasury not otherwise
      appropriated, for the Department of Education to carry out this
      section - 
          (A) $790,000,000 for fiscal year 2006;
          (B) $850,000,000 for fiscal year 2007;
          (C) $920,000,000 for fiscal year 2008;
          (D) $960,000,000 for fiscal year 2009; and
          (E) $1,010,000,000 for fiscal year 2010.
      (2) Use of excess funds
        If, at the end of a fiscal year, the funds available for
      awarding grants under this section exceed the amount necessary to
      make such grants in the amounts authorized by subsection (d),
      then all of the excess funds shall remain available for awarding
      grants under this section during the subsequent fiscal year.
    (f) Recognition of programs of study
      The Secretary shall recognize at least one rigorous secondary
    school program of study in each State under subsection (c)(3)(A)
    and (B) for the purpose of determining student eligibility under
    such subsection.
    (g) Sunset provision
      The authority to make grants under this section shall expire at
    the end of academic year 2010-2011.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 401A, as added Pub. L. 109-171,
    title VIII, Sec. 8003, Feb. 8, 2006, 120 Stat. 155.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior 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, prior to repeal by Pub. L. 102-325, title IV, Sec.
    401(i), July 23, 1992, 106 Stat. 482.

                              EFFECTIVE DATE                          
      Section effective July 1, 2006, except as otherwise provided, see
    section 8001(c) of Pub. L. 109-171, set out as an Effective Date of
    2006 Amendment note under section 1002 of this title.

-End-



-CITE-
    20 USC Secs. 1070a-2 to 1070a-6                             01/03/2007

-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-
    Secs. 1070a-2 to 1070a-6. Repealed.

-MISC1-
    Secs. 1070a-2 to 1070a-6. Repealed. Pub. L. 102-325, title IV, Sec.
      401(i), July 23, 1992, 106 Stat. 482.
      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.

-End-


-CITE-
    20 USC subpart 2 - federal early outreach and student
           services programs                               01/03/2007

-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.

-End-


-CITE-
    20 USC Division 1 - Federal TRIO Programs                   01/03/2007

-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                

-End-



-CITE-
    20 USC Sec. 1070a-11                                        01/03/2007

-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.


-MISC1-
     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.

-End-



-CITE-
    20 USC Sec. 1070a-12                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-13                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-14                                        01/03/2007

-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 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 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.

-End-



-CITE-
    20 USC Sec. 1070a-15                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-16                                        01/03/2007

-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.)

-End-



-CITE-
    20 USC Sec. 1070a-17                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-18                                        01/03/2007

-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.

-End-


-CITE-
    20 USC Division 2 - Gaining Early Awareness and Readiness
           for Undergraduate Programs                      01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-21                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-22                                        01/03/2007

-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 (!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.

    (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.


-MISC1-
                             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".

-FOOTNOTE-
    (!1) So in original. Probably should be followed by "section".


-End-



-CITE-
    20 USC Sec. 1070a-23                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-24                                        01/03/2007

-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.


-MISC1-
                             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".

-End-



-CITE-
    20 USC Sec. 1070a-25                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-26                                        01/03/2007

-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.


-MISC1-
                             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".

-End-



-CITE-
    20 USC Sec. 1070a-27                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-28                                        01/03/2007

-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.)

-End-


-CITE-
    20 USC Division 3 - Academic Achievement Incentive
           Scholarships                                    01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-31                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-32                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-33                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-34                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070a-35                                        01/03/2007

-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.

-End-


-CITE-
    20 USC Division 4 - Model Program Community Partnership
           and Counseling Grants                           01/03/2007

-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

-End-



-CITE-
    20 USC Secs. 1070a-41 to 1070a-43                           01/03/2007

-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-
    Secs. 1070a-41 to 1070a-43. Repealed.

-MISC1-
    Secs. 1070a-41 to 1070a-43. Repealed. Pub. L. 105-244, title IV,
      Sec. 405, Oct. 7, 1998, 112 Stat. 1664.
      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.

-End-


-CITE-
    20 USC Division 5 - Public Information                      01/03/2007

-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                  

-End-



-CITE-
    20 USC Secs. 1070a-51 to 1070a-53                           01/03/2007

-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-
    Secs. 1070a-51 to 1070a-53. Repealed.

-MISC1-
    Secs. 1070a-51 to 1070a-53. Repealed. Pub. L. 105-244, title IV,
      Sec. 405, Oct. 7, 1998, 112 Stat. 1664.
      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.

-End-


-CITE-
    20 USC Division 6 - National Student Savings
           Demonstration Program                           01/03/2007

-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    

-End-



-CITE-
    20 USC Sec. 1070a-61                                        01/03/2007

-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.

-MISC1-
    Sec. 1070a-61. Repealed. Pub. L. 105-244, title IV, Sec. 405, Oct.
      7, 1998, 112 Stat. 1664.
      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.

-End-


-CITE-
    20 USC Division 7 - Preeligibility Form                     01/03/2007

-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                 

-End-



-CITE-
    20 USC Sec. 1070a-71                                        01/03/2007

-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.

-MISC1-
    Sec. 1070a-71. Repealed. Pub. L. 105-244, title IV, Sec. 405, Oct.
      7, 1998, 112 Stat. 1664.
      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.

-End-


-CITE-
    20 USC Division 8 - Technical Assistance for Teachers and
           Counselors                                      01/03/2007

-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   

-End-



-CITE-
    20 USC Sec. 1070a-81                                        01/03/2007

-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.

-MISC1-
    Sec. 1070a-81. Repealed. Pub. L. 105-244, title IV, Sec. 405, Oct.
      7, 1998, 112 Stat. 1664.
      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.

-End-


-CITE-
    20 USC subpart 3 - federal supplemental educational
           opportunity grants                              01/03/2007

-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, Secs. 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.

-End-



-CITE-
    20 USC Sec. 1070b                                           01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070b-1                                         01/03/2007

-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).

-End-



-CITE-
    20 USC Sec. 1070b-2                                         01/03/2007

-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."

-End-



-CITE-
    20 USC Sec. 1070b-3                                         01/03/2007

-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 (!1) of this part.


      (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.


-MISC1-
                             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."

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1070b-4                                         01/03/2007

-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.

-End-


-CITE-
    20 USC subpart 4 - leveraging educational assistance
           partnership program                             01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070c                                           01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070c-1                                         01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070c-2                                         01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070c-3                                         01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070c-3a                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070c-4                                         01/03/2007

-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.

-End-



-CITE-
    20 USC Secs. 1070d to 1070d-1d                              01/03/2007

-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-
    Secs. 1070d to 1070d-1d. Repealed.

-MISC1-
    Secs. 1070d to 1070d-1d. Repealed. Pub. L. 102-325, title IV, Sec.
      402(a)(1), July 23, 1992, 106 Stat. 482.
      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.

-End-


-CITE-
    20 USC subpart 5 - special programs for students whose
           families are engaged in migrant and seasonal
           farmwork                                        01/03/2007

-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

-End-



-CITE-
    20 USC Sec. 1070d-2                                         01/03/2007

-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.


-MISC1-
                             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.

-End-


-CITE-
    20 USC subpart 6 - robert c. byrd honors scholarship
           program                                         01/03/2007

-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       

-End-



-CITE-
    20 USC Sec. 1070d-31                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070d-32                                        01/03/2007

-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.

-MISC1-
    Sec. 1070d-32. Repealed. Pub. L. 102-325, title IV, Sec. 406(a),
      July 23, 1992, 106 Stat. 508.
      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.

-End-



-CITE-
    20 USC Sec. 1070d-33                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070d-34                                        01/03/2007

-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,(!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.

    (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.


-MISC1-
                             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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1070d-35                                        01/03/2007

-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."

-End-



-CITE-
    20 USC Sec. 1070d-36                                        01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070d-37                                        01/03/2007

-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.


-MISC1-
                             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.

-End-



-CITE-
    20 USC Sec. 1070d-38                                        01/03/2007

-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".

-End-



-CITE-
    20 USC Sec. 1070d-39                                        01/03/2007

-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.

-MISC1-
    Sec. 1070d-39. Repealed. Pub. L. 102-325, title IV, Sec. 406(g)(1),
      July 23, 1992, 106 Stat. 509.
      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.

-End-



-CITE-
    20 USC Sec. 1070d-40                                        01/03/2007

-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.


-MISC1-
                             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".

-End-



-CITE-
    20 USC Sec. 1070d-41                                        01/03/2007

-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.

-End-


-CITE-
    20 USC subpart 7 - child care access means parents in
           school                                          01/03/2007

-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, Secs. 407, 408, July 23, 1992, 106 Stat. 510.

-End-



-CITE-
    20 USC Sec. 1070e                                           01/03/2007

-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.

-End-


-CITE-
    20 USC subpart 8 - learning anytime anywhere partnerships    01/03/2007 

-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.

-End-



-CITE-
    20 USC Sec. 1070f                                           01/03/2007

-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.


-MISC1-
                             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.

-End-



-CITE-
    20 USC Sec. 1070f-1                                         01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070f-2                                         01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070f-3                                         01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070f-4                                         01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070f-5                                         01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1070f-6                                         01/03/2007

-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.

-End-


-CITE-
    20 USC Part B - Federal Family Education Loan Program       01/03/2007

-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.

-End-



-CITE-
    20 USC Sec. 1071                                            01/03/2007

-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 a loan processing and
      issuance fee 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;
    Pub. L. 109-171, title VIII, Sec. 8004(a), Feb. 8, 2006, 120 Stat.
    158.)

-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.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1071, Pub. L. 89-329, title IV, Sec. 421, Nov. 8,
    1965, 79 Stat. 1236; Pub. L. 90-460, Secs. 2(b)(3), 3(a), Aug. 3,
    1968, 82 Stat. 635, 636; Pub. L. 90-575, title I, Secs. 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                            
      2006 - Subsec. (b)(5). Pub. L. 109-171 substituted "a loan
    processing and issuance fee" for "an administrative cost
    allowance".
      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 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

                     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 [Secs. 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.

-End-



-CITE-
    20 USC Sec. 1072                                            01/03/2007

-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, Secs. 3001(a), 3002(a), Dec. 22, 1987, 101 Stat.
    1330-36, 1330-38; Pub. L. 102-325, title IV, Secs. 412, 416(p)(8),
    July 23, 1992, 106 Stat. 511, 527; Pub. L. 103-66, title IV, Secs.
    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.


-MISC1-
                             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.

-End-



-CITE-
    20 USC Sec. 1072a                                           01/03/2007

-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) (!1) 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.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1078(c)(6)(A) of this title, referred to in subsec.
    (c)(2)(A), was redesignated section 1078(c)(6)(A)(i) of this title
    by Pub. L. 109-171, title VIII, Sec. 8014(d)(3)(A), (B), Feb. 8,
    2006, 120 Stat. 170.


-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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1072b                                           01/03/2007

-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. 1072b. Agency Operating Fund

-STATUTE-
    (a) Establishment
      Each guaranty agency shall, not later than 60 days after October
    7, 1998, establish a fund designated as the Operating Fund.
    (b) Investment of funds
      Funds deposited into the Operating Fund shall be invested at the
    discretion of the guaranty agency in accordance with prudent
    investor standards.
    (c) Additional deposits
      After the establishment of the Operating Fund, the guaranty
    agency shall deposit into the Operating Fund - 
        (1) the loan processing and issuance fee paid by the Secretary
      pursuant to section 1078(f) of this title;
        (2) 30 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;
        (3) the account maintenance fee paid by the Secretary in
      accordance with section 1087h of this title;
        (4) the default aversion fee paid in accordance with section
      1078(l) of this title;
        (5) amounts remaining pursuant to section 1078(c)(6)(B) (!1) of
      this title from collection on defaulted loans held by the agency,
      after payment of the Secretary's equitable share, excluding
      amounts deposited in the Federal Fund pursuant to section
      1072a(c)(2) of this title; and

        (6) other receipts as specified in regulations of the
      Secretary.
    (d) Uses of funds
      (1) In general
        Funds in the Operating Fund shall be used for application
      processing, loan disbursement, enrollment and repayment status
      management, default aversion activities (including those
      described in section 1072(h)(8) of this title), default
      collection activities, school and lender training, financial aid
      awareness and related outreach activities, compliance monitoring,
      and other student financial aid related activities, as selected
      by the guaranty agency.
      (2) Special rule
        The guaranty agency may, in the agency's discretion, transfer
      funds from the Operating Fund to the Federal Fund for use
      pursuant to section 1072a of this title. Such transfer shall be
      irrevocable, and any funds so transferred shall become the sole
      property of the United States.
      (3) Definitions
        For purposes of this subsection:
        (A) Default collection activities
          The term "default collection activities" means activities of
        a guaranty agency that are directly related to the collection
        of the loan on which a default claim has been paid to the
        participating lender, including the due diligence activities
        required pursuant to regulations of the Secretary.
        (B) Default aversion activities
          The term "default aversion activities" means activities of a
        guaranty agency that are directly related to providing
        collection assistance to the lender on a delinquent loan, prior
        to the loan's being legally in a default status, including due
        diligence activities required pursuant to regulations of the
        Secretary.
        (C) Enrollment and repayment status management
          The term "enrollment and repayment status management" means
        activities of a guaranty agency that are directly related to
        ascertaining the student's enrollment status, including prompt
        notification to the lender of such status, an audit of the note
        or written agreement to determine if the provisions of that
        note or agreement are consistent with the records of the
        guaranty agency as to the principal amount of the loan
        guaranteed, and an examination of the note or agreement to
        assure that the repayment provisions are consistent with the
        provisions of this part.
    (e) Ownership and regulation of Operating Fund
      (1) Ownership
        The Operating Fund, with the exception of funds transferred
      from the Federal Fund in accordance with section 1072a(f) of this
      title, shall be considered to be the property of the guaranty
      agency.
      (2) Regulation
        Except as provided in paragraph (3), the Secretary may not
      regulate the uses or expenditure of moneys in the Operating Fund,
      but the Secretary may require such necessary reports and audits
      as provided in section 1078(b)(2) of this title.
      (3) Exception
        Notwithstanding paragraphs (1) and (2), during any period in
      which funds are owed to the Federal Fund as a result of transfer
      under section 1072a(f) of this title - 
          (A) moneys in the Operating Fund may only be used for
        expenses related to the student loan programs authorized under
        this part; and
          (B) the Secretary may regulate the uses or expenditure of
        moneys in the Operating Fund.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 422B, as added Pub. L. 105-244,
    title IV, Sec. 413(b), Oct. 7, 1998, 112 Stat. 1677.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1078(c)(6)(B) of this title, referred to in subsec.
    (c)(5), was redesignated section 1078(c)(6)(A)(ii) of this title by
    Pub. L. 109-171, title VIII, Sec. 8014(d)(3)(A), (B), Feb. 8, 2006,
    120 Stat. 170.


-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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1073                                            01/03/2007

-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. 1073. Effects of adequate non-Federal programs

-STATUTE-
    (a) Federal insurance barred to lenders with access to State or
      private insurance
      Except as provided in subsection (b) of this section, the
    Secretary shall not issue certificates of insurance under section
    1079 of this title to lenders in a State if the Secretary
    determines that every eligible institution has reasonable access in
    that State to a State or private nonprofit student loan insurance
    program which is covered by an agreement under section 1078(b) of
    this title.
    (b) Exceptions
      The Secretary may issue certificates of insurance under section
    1079 of this title to a lender in a State - 
        (1) for insurance of a loan made to a student borrower who does
      not, by reason of the borrower's residence, have access to loan
      insurance under the loan insurance program of such State (or
      under any private nonprofit loan insurance program which has
      received an advance under section 1072 of this title for the
      benefit of students in such State);
        (2) for insurance of all the loans made to student borrowers by
      a lender who satisfies the Secretary that, by reason of the
      residence of such borrowers, such lender will not have access to
      any single State or nonprofit private loan insurance program
      which will insure substantially all of the loans such lender
      intends to make to such student borrowers; or
        (3) under such circumstances as may be approved by the guaranty
      agency in such State, for the insurance of a loan to a borrower
      for whom such lender previously was issued such a certificate if
      the loan covered by such certificate is not yet repaid.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 423, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1358.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1073, Pub. L. 89-329, title IV, Sec. 423, Nov. 8,
    1965, 79 Stat. 1237; Pub. L. 90-575, title I, Sec. 119(a), Oct. 16,
    1968, 82 Stat. 1026; Pub. L. 94-482, title I, Sec. 127(a), Oct. 12,
    1976, 90 Stat. 2103; Pub. L. 95-43, Sec. 1(a)(14), June 15, 1977,
    91 Stat. 214; Pub. L. 96-374, title XIII, Sec. 1391(a)(1), Oct. 3,
    1980, 94 Stat. 1503, limited participation in Federal loan
    insurance programs, prior to the general revision of this part by
    Pub. L. 99-498.

-End-



-CITE-
    20 USC Sec. 1074                                            01/03/2007

-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. 1074. Scope and duration of Federal loan insurance program

-STATUTE-
    (a) Limitations on amounts of loans covered by Federal insurance
      The total principal amount of new loans made and installments
    paid pursuant to lines of credit (as defined in section 1085 of
    this title) to students covered by Federal loan insurance under
    this part shall not exceed $2,000,000,000 for the period from July
    1, 1976, to September 30, 1976, and for each of the succeeding
    fiscal years ending prior to October 1, 2012. Thereafter, Federal
    loan insurance pursuant to this part may be granted only for loans
    made (or for loan installments paid pursuant to lines of credit) to
    enable students, who have obtained prior loans insured under this
    part, to continue or complete their educational program; but no
    insurance may be granted for any loan made or installment paid
    after September 30, 2016.
    (b) Apportionment of amounts
      The Secretary may, if he or she finds it necessary to do so in
    order to assure an equitable distribution of the benefits of this
    part, assign, within the maximum amounts specified in subsection
    (a) of this section, Federal loan insurance quotas applicable to
    eligible lenders, or to States or areas, and may from time to time
    reassign unused portions of these quotas.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 424, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1358; amended Pub. L. 102-
    325, title IV, Sec. 411(b)(1), July 23, 1992, 106 Stat. 510; Pub.
    L. 105-33, title VI, Sec. 6104(1), Aug. 5, 1997, 111 Stat. 652;
    Pub. L. 105-244, title IV, Sec. 414, Oct. 7, 1998, 112 Stat. 1679;
    Pub. L. 109-171, title VIII, Sec. 8004(b)(1), Feb. 8, 2006, 120
    Stat. 158.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1074, Pub. L. 89-329, title IV, Sec. 424, Nov. 8,
    1965, 79 Stat. 1237; Pub. L. 90-460, Sec. 1(a)(1), Aug. 3, 1968, 82
    Stat. 634; Pub. L. 90-575, title I, Sec. 112(a), Oct. 16, 1968, 82
    Stat. 1020; Pub. L. 92-318, title I, Sec. 132(a), June 23, 1972, 86
    Stat. 261; Pub. L. 94-328, Sec. 2(a), June 30, 1976, 90 Stat. 727;
    Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 1976, 90 Stat. 2103;
    Pub. L. 96-374, title IV, Sec. 411(a), title XIII, Sec. 1391(a)(1),
    Oct. 3, 1980, 94 Stat. 1415, 1503; Pub. L. 99-272, title XVI, Sec.
    16018(a)(1), Apr. 7, 1986, 100 Stat. 348, related to new loans
    under Federal loan insurance program, prior to the general revision
    of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      2006 - Subsec. (a). Pub. L. 109-171 substituted "October 1, 2012"
    for "October 1, 2004" and "September 30, 2016" for "September 30,
    2008".
      1998 - Subsec. (a). Pub. L. 105-244 substituted "October 1, 2004"
    for "October 1, 2002" and "September 30, 2008" for "September 30,
    2006".
      1997 - Subsec. (a). Pub. L. 105-33 substituted "October 1, 2002"
    for "October 1, 1998" and "September 30, 2006" for "September 30,
    2002".
      1992 - Subsec. (a). Pub. L. 102-325 substituted "October 1, 1998"
    for "October 1, 1992" and "September 30, 2002" for "September 30,
    1997".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 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.

-End-



-CITE-
    20 USC Sec. 1075                                            01/03/2007

-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. 1075. Limitations on individual federally insured loans and on
      Federal loan insurance

-STATUTE-
    (a) Annual and aggregate limits
      (1) Annual limits
        (A) The total of loans made to a student in any academic year
      or its equivalent (as determined by the Secretary) which may be
      covered by Federal loan insurance under this part may not exceed -
       
          (i) in the case of a student at an eligible institution who
        has not successfully completed the first year of a program of
        undergraduate education - 
            (I) $2,625, if such student is enrolled in a program whose
          length is at least one academic year in length (as determined
          under section 1088 of this title); and
            (II) if such student is enrolled in a program of
          undergraduate education which is less than one academic year,
          the maximum annual loan amount that such student may receive
          may not exceed the amount that bears the same ratio to the
          amount specified in subclause (I) as the length of such
          program measured in semester, trimester, quarter, or clock
          hours bears to one academic year;

          (ii) in the case of a student at an eligible institution who
        has successfully completed such first year but has not
        successfully completed the remainder of a program of
        undergraduate education - 
            (I) $3,500; or
            (II) if such student is enrolled in a program of
          undergraduate education, the remainder of which is less than
          one academic year, the maximum annual loan amount that such
          student may receive may not exceed the amount that bears the
          same ratio to the amount specified in subclause (I) as such
          remainder measured in semester, trimester, quarter, or clock
          hours bears to one academic year;

          (iii) in the case of a student at an eligible institution who
        has successfully completed the first and second years of a
        program of undergraduate education but has not successfully
        completed the remainder of such program - 
            (I) $5,500; or
            (II) if such student is enrolled in a program of
          undergraduate education, the remainder of which is less than
          one academic year, the maximum annual loan amount that such
          student may receive may not exceed the amount that bears the
          same ratio to the amount specified in subclause (I) as such
          remainder measured in semester, trimester, quarter, or clock
          hours bears to one academic year; and

          (iv) in the case of a graduate or professional student (as
        defined in regulations of the Secretary) at an eligible
        institution, $8,500.

        (B) The annual insurable limits contained in subparagraph (A)
      shall not apply in cases where the Secretary determines, pursuant
      to regulations, that a higher amount is warranted in order to
      carry out the purpose of this part with respect to students
      engaged in specialized training requiring exceptionally high
      costs of education. The annual insurable limit per student shall
      not be deemed to be exceeded by a line of credit under which
      actual payments by the lender to the borrower will not be made in
      any year in excess of the annual limit.
        (C) For the purpose of subparagraph (A), the number of years
      that a student has completed in a program of undergraduate
      education shall include any prior enrollment in an eligible
      program of undergraduate education for which the student was
      awarded an associate or baccalaureate degree, if such degree is
      required by the institution for admission to the program in which
      the student is enrolled.
      (2) Aggregate limits
        (A) The aggregate insured unpaid principal amount for all such
      insured loans made to any student shall not at any time exceed - 
          (i) $23,000, in the case of any student who has not
        successfully completed a program of undergraduate education,
        excluding loans made under section 1078-1 (!1) or 1078-2 of
        this title; and

          (ii) $65,500, in the case of any graduate or professional
        student (as defined by regulations of the Secretary) and (I)
        including any loans which are insured by the Secretary under
        this section, or by a guaranty agency, made to such student
        before the student became a graduate or professional
        student),(!2) but (II) excluding loans made under section 1078-
        1 (!1) or 1078-2 of this title,


      except that the Secretary may increase the limit applicable to
      students who are pursuing programs which the Secretary determines
      are exceptionally expensive.
        (B) The Secretary may increase the aggregate insurable limit
      applicable to students who are pursuing programs which the
      Secretary determines are exceptionally expensive.
    (b) Level of insurance coverage based on default rate
      (1) Reduction for defaults in excess of 5 or 9 percent
        (A) Except as provided in subparagraph (B), the insurance
      liability on any loan insured by the Secretary under this part
      shall be 100 percent of the unpaid balance of the principal
      amount of the loan plus interest, except that - 
          (i) if, for any fiscal year, the total amount of payments
        under section 1080 of this title by the Secretary to any
        eligible lender as described in section 1085(d)(1)(D) of this
        title exceeds 5 percent of the sum of the loans made by such
        lender which are insured by the Secretary and which were in
        repayment at the end of the preceding fiscal year, the
        insurance liability under this subsection for that portion of
        such excess which represents loans insured after the applicable
        date with respect to such loans, as determined under
        subparagraph (C), shall be equal to 90 percent of the amount of
        such portion; or
          (ii) if, for any fiscal year, the total amount of such
        payments to such a lender exceeds 9 percent of such sum, the
        insurance liability under this subsection for that portion of
        such excess which represents loans insured after the applicable
        date with respect to such loans, as determined under
        subparagraph (C), shall be equal to 80 percent of the amount of
        such portion.

        (B) Notwithstanding subparagraph (A), the provisions of clauses
      (i) and (ii) of such subparagraph shall not apply to an eligible
      lender as described in section 1085(d)(1)(D) of this title for
      the fiscal year in which such lender begins to carry on a loan
      program insured by the Secretary, or for any of the 4 succeeding
      fiscal years.
        (C) The applicable date with respect to a loan made by an
      eligible lender as described in section 1085(d)(1)(D) of this
      title shall be - 
          (i) the 90th day after the adjournment of the next regular
        session of the appropriate State legislature which convenes
        after October 12, 1976, or
          (ii) if the primary source of lending capital for such lender
        is derived from the sale of bonds, and the constitution of the
        appropriate State prohibits a pledge of such State's credit as
        security against such bonds, the day which is one year after
        such 90th day.
      (2) Computation of amounts in repayment
        For the purpose of this subsection, the sum of the loans made
      by a lender which are insured by the Secretary and which are in
      repayment shall be the original principal amount of loans made by
      such lender which are insured by the Secretary reduced by - 
          (A) the amount the Secretary has been required to pay to
        discharge his or her insurance obligations under this part;
          (B) the original principal amount of loans insured by the
        Secretary which have been fully repaid;
          (C) the original principal amount insured on those loans for
        which payment of first installment of principal has not become
        due pursuant to section 1077(a)(2)(B) of this title or such
        first installment need not be paid pursuant to section
        1077(a)(2)(C) of this title; and
          (D) the original principal amount of loans repaid by the
        Secretary under section 1087 of this title.
      (3) Payments to assignees
        For the purpose of this subsection, payments by the Secretary
      under section 1080 of this title to an assignee of the lender
      with respect to a loan shall be deemed payments made to such
      lender.
      (4) Pledge of full faith and credit
        The full faith and credit of the United States is pledged to
      the payment of all amounts which may be required to be paid under
      the provisions of section 1080 or 1087 of this title.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 425, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1359; amended Pub. L. 100-
    50, Sec. 10(a), June 3, 1987, 101 Stat. 341; Pub. L. 102-325,
    title IV, Sec. 413, July 23, 1992, 106 Stat. 512; Pub. L. 103-208,
    Sec. 2(c)(2), (3), Dec. 20, 1993, 107 Stat. 2460, 2461; Pub. L. 105-
    244, title IV, Sec. 415, Oct. 7, 1998, 112 Stat. 1679; Pub. L. 109-
    171, title VIII, Sec. 8005(a), Feb. 8, 2006, 120 Stat. 158.)


-STATAMEND-
                     AMENDMENT OF SUBSECTION (A)(1)(A)                 
      Pub. L. 109-171, title VIII, Sec. 8005(a), (e), Feb. 8, 2006, 120
    Stat. 158, 159, provided that, effective July 1, 2007, subsection
    (a)(1)(A) of this section is amended:

      (1) in clause (i)(I), by substituting "$3,500" for "$2,625"; and
      (2) in clause (ii)(I), by substituting "$4,500" for "$3,500".

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1078-1 of this title, referred to in subsec. (a)(2)(A),
    was repealed by Pub. L. 103-66, title IV, Sec. 4047(b)-(d), Aug.
    10, 1993, 107 Stat. 364, eff. July 1, 1994, except with respect to
    loans provided under that section as it existed prior to Aug. 10,
    1993. Subsequently, a new section 1078-1, relating to voluntary
    flexible agreements with guaranty agencies, was enacted by Pub. L.
    105-244, title IV, Sec. 418, Oct. 7, 1998, 112 Stat. 1691.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1075, Pub. L. 89-329, title IV, Sec. 425, Nov. 8,
    1965, 79 Stat. 1238; Pub. L. 90-575, title I, Secs. 116(b)(1),
    120(a)(2), Oct. 16, 1968, 82 Stat. 1023, 1027; Pub. L. 92-318,
    title I, Secs. 132A(a), 132B(a), June 23, 1972, 86 Stat. 261, 262;
    Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 1976, 90 Stat. 2104;
    Pub. L. 95-43, Sec. 1(a)(15)-(17), June 15, 1977, 91 Stat. 214;
    Pub. L. 95-566, Sec. 5(b)(2), Nov. 1, 1978, 92 Stat. 2403; Pub. L.
    96-374, title IV, Sec. 412(a), (b), (f), title XIII, Sec.
    1391(a)(1), Oct. 3, 1980, 94 Stat. 1416, 1417, 1503; Pub. L. 97-35,
    title V, Sec. 535(a), (b), Aug. 13, 1981, 95 Stat. 455; Pub. L. 99-
    272, title XVI, Sec. 16013(e)(1), Apr. 7, 1986, 100 Stat. 341,
    limited Federal loan insurance, prior to the general revision of
    this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Subsec. (a)(1)(A)(i)(I). Pub. L. 105-244, Sec. 415(1)(A),
    inserted "and" after semicolon.
      Subsec. (a)(1)(A)(i)(II), (III). Pub. L. 105-244, Sec. 415(1)(B),
    added subcl. (II) and struck out former subcls. (II) and (III)
    which read as follows:
      "(II) $1,750, if such student is enrolled in a program whose
    length is less than one academic year, but at least  2/3  of such
    an academic year; and
      "(III) $875, if such student is enrolled in a program whose
    length is less than  2/3 , but at least  1/3 , of such an academic
    year;".
      Subsec. (a)(1)(A)(iii)(II). Pub. L. 105-244, Sec. 415(2),
    inserted "and" after semicolon at end.
      1993 - Subsec. (a)(1)(A)(ii), (iii). Pub. L. 103-208, Sec.
    2(c)(2)(A), added cls. (ii) and (iii) and struck out former cls.
    (ii) and (iii) which read as follows:
      "(ii) the case of a student who has successfully completed such
    first year but has not successfully completed the remainder of a
    program of undergraduate study - 
        "(I) $3,500, if such student is enrolled in a program whose
      length is at least one academic year in length (as determined
      under section 1088 of this title);
        "(II) $2,325, if such student is enrolled in a program whose
      length is less than one academic year, but at least  2/3  of such
      an academic year; and
        "(III) $1,175, if such student is enrolled in a program whose
      length is less than  2/3 , but at least  1/3 , of such an
      academic year;
      "(iii) in the case of a student at an eligible institution who
    has successfully completed such first and second year but has not
    successfully completed the remainder of a program of undergraduate
    study - 
        "(I) $5,500, if such student is enrolled in a program whose
      length is at least one academic year in length (as determined
      under section 1088 of this title);
        "(II) $3,675, if such student is enrolled in a program whose
      length is less than one academic year, but at least  2/3  of such
      an academic year; and
        "(III) $1,825, if such student is enrolled in a program whose
      length is less than  2/3 , but at least  1/3 , of such an
      academic year; and".
      Subsec. (a)(1)(A)(iv). Pub. L. 103-208, Sec. 2(c)(2)(B),
    substituted a period for semicolon at end.
      Subsec. (a)(1)(C). Pub. L. 103-208, Sec. 2(c)(3), added subpar.
    (C).
      1992 - Subsec. (a)(1)(A). Pub. L. 102-325, Sec. 413(1), added
    cls. (i) to (iv) and struck out former cls. (i) to (iii) which read
    as follows:
      "(i) $2,625, in the case of a student who has not successfully
    completed the first and second year of a program of undergraduate
    education;
      "(ii) $4,000, in the case of a student who has successfully
    completed such first and second year but who has not successfully
    completed the remainder of a program of undergraduate education; or
      "(iii) $7,500, in the case of a graduate or professional student
    (as defined in regulations of the Secretary)."
      Subsec. (a)(2)(A). Pub. L. 102-325, Sec. 413(2), added cls. (i)
    and (ii) and concluding provision and struck out former cls. (i)
    and (ii) which read as follows:
      "(i) $17,250, in the case of any student who has not successfully
    completed a program of undergraduate education, excluding loans
    made under section 1078-1 or 1078-2 of this title; and
      "(ii) $54,750, in the case of any graduate or professional
    student (as defined by regulations of the Secretary and including
    any loans which are insured by the Secretary under this part, or by
    a guaranty agency, made to such person before he or she became a
    graduate or professional student), excluding loans made under
    section 1078-1 or 1078-2 of this title."
      1987 - Subsec. (a)(2)(A)(i). Pub. L. 100-50, Sec. 10(a)(1),
    inserted ", excluding loans made under section 1078-1 or 1078-2 of
    this title" after "undergraduate education".
      Subsec. (a)(2)(A)(ii). Pub. L. 100-50, Sec. 10(a)(2), inserted ",
    excluding loans made under section 1078-1 or 1078-2 of this title"
    after "graduate or professional student)".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-171, title VIII, Sec. 8005(e), Feb. 8, 2006, 120
    Stat. 159, provided that: "The amendments made by subsections (a),
    (b), and (d) [amending this section and sections 1078 and 1078-8 of
    this title] shall be effective July 1, 2007."

                     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(c)(2) of Pub. L. 103-208 effective on and
    after July 1, 1994 and amendment by section 2(c)(3) of Pub. L. 103-
    208 effective on and after Dec. 20, 1993, see section 5(b)(2), (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, with
    changes made in subsec. (a), relating to annual and aggregate loan
    limits, applicable with respect to loans for which first
    disbursement is made on or after July 1, 1993, except that changes
    made in subsec. (a)(1)(A)(i) applicable with respect to loans for
    which first disbursement is made on or after Oct. 1, 1992, and
    except that changes made in subsec. (a)(1)(A)(iv) applicable with
    respect to loans to cover costs of instruction for periods of
    enrollment beginning on or after Oct. 1, 1993, see section 432 of
    Pub. L. 102-325, set out as a note under section 1078 of this
    title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

                              EFFECTIVE DATE                          
      Section effective Oct. 17, 1986, except that subsec. (a) of this
    section applicable only to loans disbursed on or after Jan. 1,
    1987, or made to cover the costs of instruction for periods of
    enrollment beginning on or after Jan. 1, 1987, see section 402(b)
    of Pub. L. 99-498, set out as a note under section 1071 of this
    title.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) So in original. There is no opening parenthesis.


-End-



-CITE-
    20 USC Sec. 1076                                            01/03/2007

-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. 1076. Sources of funds

-STATUTE-
      Loans made by eligible lenders in accordance with this part shall
    be insurable by the Secretary whether made from funds fully owned
    by the lender or from funds held by the lender in a trust or
    similar capacity and available for such loans.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 426, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1361.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1076, Pub. L. 89-329, title IV, Sec. 426, Nov. 8,
    1965, 79 Stat. 1238; Pub. L. 94-482, title I, Sec. 127(a), Oct. 12,
    1976, 90 Stat. 2106; Pub. L. 96-374, title XIII, Sec. 1391(a)(1),
    Oct. 3, 1980, 94 Stat. 1503, related to insurability of loans made
    from funds owned by lender or held by lender in trust, prior to the
    general revision of this part by Pub. L. 99-498.

-End-



-CITE-
    20 USC Sec. 1077                                            01/03/2007

-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. 1077. Eligibility of student borrowers and terms of federally
      insured student loans

-STATUTE-
    (a) List of requirements
      Except as provided in section 1078-3 of this title, a loan by an
    eligible lender shall be insurable by the Secretary under the
    provisions of this part only if - 
        (1) made to a student who (A) is an eligible student under
      section 1091 of this title, (B) has agreed to notify promptly the
      holder of the loan concerning any change of address, and (C) is
      carrying at least one-half the normal full-time academic workload
      for the course of study the student is pursuing (as determined by
      the institution); and
        (2) evidenced by a note or other written agreement which - 
          (A) is made without security and without endorsement;
          (B) provides for repayment (except as provided in subsection
        (c) of this section) of the principal amount of the loan in
        installments over a period of not less than 5 years (unless
        sooner repaid or unless the student, during the 6 months
        preceding the start of the repayment period, specifically
        requests that repayment be made over a shorter period) nor more
        than 10 years beginning 6 months after the month in which the
        student ceases to carry at an eligible institution at least one-
        half the normal full-time academic workload as determined by
        the institution, except - 
            (i) as provided in subparagraph (C);
            (ii) that the note or other written instrument may contain
          such reasonable provisions relating to repayment in the event
          of default in the payment of interest or in the payment of
          the cost of insurance premiums, or other default by the
          borrower, as may be authorized by regulations of the
          Secretary in effect at the time the loan is made; and
            (iii) that the lender and the student, after the student
          ceases to carry at an eligible institution at least one-half
          the normal full-time academic workload as determined by the
          institution, may agree to a repayment schedule which begins
          earlier, or is of shorter duration, than required by this
          subparagraph, but in the event a borrower has requested and
          obtained a repayment period of less than 5 years, the
          borrower may at any time prior to the total repayment of the
          loan, have the repayment period extended so that the total
          repayment period is not less than 5 years;

          (C) provides that periodic installments of principal need not
        be paid, but interest shall accrue and be paid, during any
        period - 
            (i) during which the borrower - 
              (I) is pursuing at least a half-time course of study as
            determined by an eligible institution; or
              (II) is pursuing a course of study pursuant to a graduate
            fellowship program approved by the Secretary, or pursuant
            to a rehabilitation training program for individuals with
            disabilities approved by the Secretary,

          except that no borrower shall be eligible for a deferment
          under this clause, or a loan made under this part (other than
          a loan made under section 1078-2 or 1078-3 of this title),
          while serving in a medical internship or residency program;
            (ii) not in excess of 3 years during which the borrower is
          seeking and unable to find full-time employment; or
            (iii) not in excess of 3 years for any reason which the
          lender determines, in accordance with regulations prescribed
          by the Secretary under section 1085(o) of this title, has
          caused or will cause the borrower to have an economic
          hardship;

        and provides that any such period shall not be included in
        determining the 10-year period described in subparagraph (B);
          (D) provides for interest on the unpaid principal balance of
        the loan at a yearly rate, not exceeding the applicable maximum
        rate prescribed in section 1077a of this title, which interest
        shall be payable in installments over the period of the loan
        except that, if provided in the note or other written
        agreement, any interest payable by the student may be deferred
        until not later than the date upon which repayment of the first
        installment of principal falls due, in which case interest
        accrued during that period may be added on that date to the
        principal;
          (E) provides that the lender will not collect or attempt to
        collect from the borrower any portion of the interest on the
        note which is payable by the Secretary under this part, and
        that the lender will enter into such agreements with the
        Secretary as may be necessary for the purpose of section 1087
        of this title;
          (F) entitles the student borrower to accelerate without
        penalty repayment of the whole or any part of the loan;
          (G)(i) contains a notice of the system,(!1) of disclosure of
        information concerning such loan to credit bureau organizations
        under section 1080a of this title, and (ii) provides that the
        lender on request of the borrower will provide information on
        the repayment status of the note to such organizations;

          (H) provides that, no more than 6 months prior to the date on
        which the borrower's first payment on a loan is due, the lender
        shall offer the borrower the option of repaying the loan in
        accordance with a graduated or income-sensitive repayment
        schedule established by the lender and in accordance with the
        regulations of the Secretary; and
          (I) contains such other terms and conditions, consistent with
        the provisions of this part and with the regulations issued by
        the Secretary pursuant to this part, as may be agreed upon by
        the parties to such loan, including, if agreed upon, a
        provision requiring the borrower to pay the lender, in addition
        to principal and interest, amounts equal to the insurance
        premiums payable by the lender to the Secretary with respect to
        such loan;

        (3) the funds borrowed by a student are disbursed to the
      institution by check or other means that is payable to and
      requires the endorsement or other certification by such student,
      except - 
          (A) that nothing in this subchapter and part C of subchapter
        I of chapter 34 of title 42 shall be interpreted - 
            (i) to allow the Secretary to require checks to be made
          copayable to the institution and the borrower; or
            (ii) to prohibit the disbursement of loan proceeds by means
          other than by check; and

          (B) in the case of any student who is studying outside the
        United States in a program of study abroad that is approved for
        credit by the home institution at which such student is
        enrolled, the funds shall, at the request of the borrower, be
        delivered directly to the student and the checks may be
        endorsed, and fund transfers authorized, pursuant to an
        authorized power-of-attorney; and

        (4) the funds borrowed by a student are disbursed in accordance
      with section 1078-7 of this title.
    (b) Special rules for multiple disbursement
      For the purpose of subsection (a)(4) of this section - 
        (1) all loans issued for the same period of enrollment shall be
      considered as a single loan; and
        (2) the requirements of such subsection shall not apply in the
      case of a loan made under section 1078-2 or 1078-3 of this title,
      or made to a student to cover the cost of attendance at an
      eligible institution outside the United States.
    (c) Special repayment rules
      Except as provided in subsection (a)(2)(H) of this section, the
    total of the payments by a borrower during any year of any
    repayment period with respect to the aggregate amount of all loans
    to that borrower which are insured under this part shall not,
    unless the borrower and the lender otherwise agree, be less than
    $600 or the balance of all such loans (together with interest
    thereon), whichever amount is less (but in no instance less than
    the amount of interest due and payable).
    (d) Borrower information
      The lender shall obtain the borrower's driver's license number,
    if any, at the time of application for the loan.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 427, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1361; amended Pub. L. 100-
    50, Sec. 10(b), (c), June 3, 1987, 101 Stat. 341; Pub. L. 100-369,
    Secs. 5(b)(1), 7(c), 11(a), July 18, 1988, 102 Stat. 836-838; Pub.
    L. 101-239, title II, Secs. 2002(a)(1), 2004(b)(2), Dec. 19, 1989,
    103 Stat. 2111, 2116; Pub. L. 102-164, title VI, Secs. 601(a),
    602(a), Nov. 15, 1991, 105 Stat. 1065, 1066; Pub. L. 102-325, title
    IV, Sec. 414, July 23, 1992, 106 Stat. 513; Pub. L. 103-208, Sec.
    2(c)(4), Dec. 20, 1993, 107 Stat. 2461.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1077, Pub. L. 89-329, title IV, Sec. 427, Nov. 8,
    1965, 79 Stat. 1238; Pub. L. 89-794, title XI, Sec. 1101(b)(1),
    Nov. 8, 1966, 80 Stat. 1476; Pub. L. 90-460, Sec. 2(a)(1), Aug. 3,
    1968, 82 Stat. 635; Pub. L. 90-575, title I, Secs. 113(b)(2),
    116(b)(2), 117(c), 120(c)(2), Oct. 16, 1968, 82 Stat. 1021, 1023,
    1026, 1027; Pub. L. 92-318, title I, Secs. 132B(b), 132C(c), June
    23, 1972, 86 Stat. 262, 263; Pub. L. 94-482, title I, Sec. 127(a),
    Oct. 12, 1976, 90 Stat. 2106; Pub. L. 95-43, Sec. 1(a)(9), (18),
    June 15, 1977, 91 Stat. 213, 214; Pub. L. 95-566, Sec. 5(a)(1),
    Nov. 1, 1978, 92 Stat. 2403; Pub. L. 96-374, title IV, Secs.
    413(a), (c), 415(a)(2), (b)(1), 416(a)(2), 423(a)(1), title XIII,
    Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1417-1421, 1432, 1503; Pub.
    L. 97-35, title V, Sec. 537(b)(1), (d)(2), (e)(1), Aug. 13, 1981,
    95 Stat. 456, 457; Pub. L. 98-79, Sec. 10[(a)], Aug. 15, 1983, 97
    Stat. 484; Pub. L. 99-272, title XVI, Secs. 16012(a), 16013(b),
    16017(b)(1), Apr. 7, 1986, 100 Stat. 339, 340, 347, set out
    conditions for Federal loan insurance, prior to the general
    revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1993 - Subsec. (a)(2)(C)(i). Pub. L. 103-208 inserted "section"
    before "1078-2 or 1078-3".
      1992 - Subsec. (a)(2)(A). Pub. L. 102-325, Sec. 414(a), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "is made without security and without endorsement, except
    that prior to making a loan insurable by the Secretary under this
    part a lender shall - 
        "(i) obtain a credit report, from at least one national credit
      bureau organization, with respect to a loan applicant who will be
      at least 21 years of age as of July 1 of the award year for which
      assistance is being sought, for which the lender may charge the
      applicant an amount not to exceed the lesser of $25 or the actual
      cost of obtaining the credit report; and
        "(ii) require an applicant of the age specified in clause (i)
      who, in the judgment of the lender in accordance with the
      regulations of the Secretary, has an adverse credit history, to
      obtain a credit worthy cosigner in order to obtain the loan,
      provided that, for purposes of this clause, an insufficient or
      nonexistent credit history may not be considered to be an adverse
      credit history;".
      Subsec. (a)(2)(C). Pub. L. 102-325, Sec. 414(b), amended subpar.
    (C) generally, revising and restating as cls. (i) to (iii)
    provisions formerly contained in cls. (i) to (xi).
      Subsec. (a)(2)(G) to (I). Pub. L. 102-325, Sec. 414(c)(1), struck
    out "and" at end of subpar. (G), added subpar. (H), and
    redesignated former subpar. (H) as (I).
      Subsec. (a)(3). Pub. L. 102-325, Sec. 414(d), amended par. (3)
    generally. Prior to amendment, par. (3) read as follows: "the funds
    borrowed by a student are disbursed to the institution by check or
    other means that is payable to and requires the endorsement or
    other certification by such student, except nothing in this
    subchapter and part C of subchapter I of chapter 34 of title 42
    shall be interpreted to allow the Secretary to require checks to be
    made co-payable to the institution and the borrower or to prohibit
    the disbursement of loan proceeds by means other than by check;
    and".
      Subsec. (c). Pub. L. 102-325, Sec. 414(c)(2), (e), substituted
    "Special repayment rules" for "Minimum repayment rate" in heading
    and in text "Except as provided in subsection (a)(2)(H) of this
    section, the total" for "The total" and "(but in no instance less
    than the amount of interest due and payable)" for ", except that in
    the case of a husband and wife, both of whom have such loans
    outstanding, the total of the combined payments for such a couple
    during any year shall not be less than $600 or the balance of all
    such loans, whichever is less".
      1991 - Subsec. (a)(2)(A). Pub. L. 102-164, Sec. 601(a), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "is made without security and without endorsement, except
    that if the borrower is a minor and such note or other written
    agreement executed by the borrower would not, under the applicable
    law, create a binding obligation, endorsement may be required;".
      Subsec. (d). Pub. L. 102-164, Sec. 602(a), added subsec. (d).
      1989 - Subsec. (a)(2)(C)(i). Pub. L. 101-239, Sec. 2002(a)(1),
    inserted before semicolon at end ", except that no borrower shall
    be eligible for a deferment under this clause, or a loan made under
    this part (other than a loan made under section 1078-2 or 1078-3 of
    this title), while serving in a medical internship or residency
    program".
      Subsec. (a)(4). Pub. L. 101-239, Sec. 2004(b)(2), amended par.
    (4) generally. Prior to amendment, par. (4) read as follows: "in
    the case of any loan made for any period of enrollment that ends
    more than 180 days (or 6 months) after the date disbursement is
    scheduled to occur, and for an amount of $1,000 or more, the
    proceeds of the loan will, subject to subsection (b) of this
    section, be disbursed directly by the lender in two or more
    installments, none of which exceeds one-half of the loan, with the
    second installment being disbursed after not less than one-third of
    such period (except as necessary to permit the second installment
    to be disbursed at the beginning of the second semester, quarter,
    or similar division of such period of enrollment)."
      1988 - Subsec. (a)(2)(C)(v). Pub. L. 100-369, Sec. 7(c),
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      Subsec. (a)(2)(C)(vii). Pub. L. 100-369, Sec. 11(a), inserted
    "after January 1, 1986," after "service".
      Subsec. (b)(2). Pub. L. 100-369, Sec. 5(b)(1), substituted
    "section 1078-2 or 1078-3" for "section 1078-1, 1078-2, or 1078-3".
      1987 - Subsec. (a)(2)(C)(vi). Pub. L. 100-50, Sec. 10(b)(1),
    inserted "nonprofit" before "private".
      Subsec. (a)(2)(C)(vii). Pub. L. 100-50, Sec. 10(b)(2), inserted
    "or serving in an internship or residency program leading to a
    degree or certificate awarded by an institution of higher
    education, a hospital, or a health care facility that offers
    postgraduate training" before semicolon at end.
      Subsec. (a)(4). Pub. L. 100-50, Sec. 10(c), substituted "$1,000
    or more" for "more than $1,000".

                     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 1003 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 effective July 23, 1992, except that
    changes made in subsec. (a)(2)(C), relating to deferments,
    applicable with respect to loans for which first disbursement is
    made on or after July 1, 1993, to an individual who is a new
    borrower on date such individual applies for a loan, and except
    that changes made in subsec. (a)(2)(H), relating to offering
    graduated or income sensitive repayment options, applicable with
    respect to loans for which first disbursement is made on or after
    July 1, 1993, to an individual who is a new borrower on date such
    individual applies for a loan, see section 432 of Pub. L. 102-325,
    set out as a note under section 1078 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Section 2002(a)(4) of Pub. L. 101-239 provided that: "The
    amendments made by this subsection [amending this section and
    sections 1078 and 1087dd of this title] shall apply to any loan
    made, insured, or guaranteed under part B or part E of title IV of
    the Higher Education Act of 1965 [20 U.S.C. 1071 et seq., 1087aa et
    seq.], including a loan made before the enactment of this Act [Dec.
    19, 1989], and shall take effect on January 1, 1990, except that
    such amendments shall not apply with respect to any portion of a
    period of deferment granted to a borrower under section
    427(a)(2)(C)(i), 428(b)(1)(M)(i), or 464(c)(2)(A)(i) of the Higher
    Education Act of 1965 [sections 1077(a)(2)(C)(i), 1078(b)(1)(M)(i),
    1087dd(c)(2)(A)(i) of this title] for service in a medical
    internship or residency program that is completed prior to the
    effective date of this section [Dec. 19, 1989]."
      Section 2004(c) of Pub. L. 101-239 provided that: "The amendments
    made by this section [enacting section 1078-7 of this title and
    amending this section and section 1078 of this title] shall apply
    with respect to loans made to cover the cost of instruction for
    periods of enrollment beginning on or after January 1, 1990."

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Section 11(b) of Pub. L. 100-369 provided that: "The amendments
    made by subsection (a) [amending this section and section 1078 of
    this title] and section 10(b) of the Higher Education Technical
    Amendments Act of 1987 [section 10(b) of Pub. L. 100-50, amending
    this section and section 1078 of this title] shall apply with
    respect to loans made, insured or guaranteed under part B of the
    Higher Education Act of 1965 [probably means part B of title IV of
    Pub. L. 89-329 which is classified to this part], on, before, or
    after the date of enactment of the Higher Education Technical
    Amendments Act of 1987 [June 3, 1987]."
      Amendment by section 5(b)(1) of Pub. L. 100-369 effective with
    respect to loans made on or after Oct. 1, 1988, and amendment by
    section 7(c) of Pub. L. 100-369 effective July 18, 1988, see
    section 13(b) of Pub. L. 100-369, set out as a note under section
    1091 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by section 10(b) of Pub. L. 100-50 applicable with
    respect to loans made, insured or guaranteed under this part on,
    before, or after June 3, 1987, see section 11(b) of Pub. L. 100-
    369, set out as an Effective Date of 1988 Amendment note above.
      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 that subsec. (a)(2)(C)
    (other than cls. (viii), (ix), and (x) thereof) of this section
    shall apply only to loans to new borrowers made to cover the costs
    of instruction for periods of enrollment beginning on or after July
    1, 1987, or disbursed on or after July 1, 1987, see section 402(b)
    of Pub. L. 99-498, set out as a note under section 1071 of this
    title.

-FOOTNOTE-
    (!1) So in original. The comma probably should not appear.


-End-



-CITE-
    20 USC Sec. 1077a                                           01/03/2007

-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. 1077a. Applicable interest rates

-STATUTE-
    (a) Rates to be consistent for borrower's entire debt
      With respect to any loan to cover the cost of instruction for any
    period of instruction beginning on or after January 1, 1981, the
    rate of interest applicable to any borrower shall - 
        (1) not exceed 7 percent per year on the unpaid principal
      balance of the loan in the case of any borrower who, on the date
      of entering into the note or other written evidence of that loan,
      has an outstanding balance of principal or interest on any loan
      made, insured, or guaranteed under this part, for which the
      interest rate does not exceed 7 percent;
        (2) except as provided in paragraph (3), be 9 percent per year
      on the unpaid principal balance of the loan in the case of any
      borrower who, on the date of entering into the note or other
      written evidence of that loan, has no outstanding balance of
      principal or interest on any loan described in paragraph (1) or
      any loan for which the interest rate is determined under
      paragraph (1); or
        (3) be 8 percent per year on the unpaid principal balance of
      the loan for a loan to cover the cost of education for any period
      of enrollment beginning on or after a date which is 3 months
      after a determination made under subsection (b) of this section
      in the case of any borrower who, on the date of entering into the
      note or other written evidence of the loan, has no outstanding
      balance of principal or interest on any loan for which the
      interest rate is determined under paragraph (1) or (2) of this
      subsection.
    (b) Reduction for new borrowers after decline in Treasury bill
      rates
      If for any 12-month period beginning on or after January 1, 1981,
    the Secretary, after consultation with the Secretary of the
    Treasury, determines that the average of the bond equivalent rates
    of 91-day Treasury bills auctioned for such 12-month period is
    equal to or less than 9 percent, the interest rate for loans under
    this part shall be the rate prescribed in subsection (a)(3) of this
    section for borrowers described in such subsection.
    (c) Rates for supplemental loans for students and loans for parents
      (1) In general
        Except as otherwise provided in this subsection, the applicable
      rate of interest on loans made pursuant to section 1078-1 (!1) or
      1078-2 of this title on or after October 1, 1981, shall be 14
      percent per year on the unpaid principal balance of the loan.

      (2) Reduction of rate after decline in Treasury bill rates
        If for any 12-month period beginning on or after October 1,
      1981, the Secretary, after consultation with the Secretary of the
      Treasury, determines that the average of the bond equivalent
      rates of 91-day Treasury bills auctioned for such 12-month period
      is equal to or less than 14 percent, the applicable rate of
      interest for loans made pursuant to section 1078-1 (!1) or 1078-2
      of this title on and after the first day of the first month
      beginning after the date of publication of such determination
      shall be 12 percent per year on the unpaid principal balance of
      the loan.
      (3) Increase of rate after increase in Treasury bill rates
        If for any 12-month period beginning on or after the date of
      publication of a determination under paragraph (2), the
      Secretary, after consultation with the Secretary of the Treasury,
      determines that the average of the bond equivalent rates of 91-
      day Treasury bills auctioned for such 12-month period exceeds 14
      percent, the applicable rate of interest for loans made pursuant
      to section 1078-1 (!1) or 1078-2 of this title on and after the
      first day of the first month beginning after the date of
      publication of that determination under this paragraph shall be
      14 percent per year on the unpaid principal balance of the loan.
      (4) Availability of variable rates
        (A) For any loan made pursuant to section 1078-1 (!1) or 1078-2
      of this title and disbursed on or after July 1, 1987, or any loan
      made pursuant to such section prior to such date that is
      refinanced pursuant to section 1078-1(d) (!1) or 1078-2(d) of
      this title, the applicable rate of interest during any 12-month
      period beginning on July 1 and ending on June 30 shall be
      determined under subparagraph (B), except that such rate shall
      not exceed 12 percent.
        (B)(i) For any 12-month period beginning on July 1 and ending
      on or before June 30, 2001, the rate determined under this
      subparagraph is determined on the preceding June 1 and is equal
      to - 
          (I) the bond equivalent rate of 52-week Treasury bills
        auctioned at the final auction held prior to such June 1; plus
          (II) 3.25 percent.

        (ii) For any 12-month period beginning on July 1 of 2001 or any
      succeeding year, the rate determined under this subparagraph is
      determined on the preceding June 26 and is equal to - 
          (I) the weekly average 1-year constant maturity Treasury
        yield, as published by the Board of Governors of the Federal
        Reserve System, for the last calendar week ending on or before
        such June 26; plus
          (II) 3.25 percent.

        (C) The Secretary shall determine the applicable rate of
      interest under subparagraph (B) after consultation with the
      Secretary of the Treasury and shall publish such rate in the
      Federal Register as soon as practicable after the date of
      determination.
        (D) Notwithstanding subparagraph (A) - 
          (i) for any loan made pursuant to section 1078-1 (!1) of this
        title for which the first disbursement is made on or after
        October 1, 1992 - 
            (I) subparagraph (B) shall be applied by substituting "3.1"
          for "3.25"; and
            (II) the interest rate shall not exceed 11 percent; and

          (ii) for any loan made pursuant to section 1078-2 of this
        title for which the first disbursement is made on or after
        October 1, 1992 - 
            (I) subparagraph (B) shall be applied by substituting "3.1"
          for "3.25"; and
            (II) the interest rate shall not exceed 10 percent.

        (E) Notwithstanding subparagraphs (A) and (D) for any loan made
      pursuant to section 1078-2 of this title for which the first
      disbursement is made on or after July 1, 1994 - 
          (i) subparagraph (B) shall be applied by substituting "3.1"
        for "3.25"; and
          (ii) the interest rate shall not exceed 9 percent.
    (d) Interest rates for new borrowers after July 1, 1988
      Notwithstanding subsections (a) and (b) of this section, with
    respect to any loan (other than a loan made pursuant to sections
    1078-1,(!1) 1078-2, and 1078-3 of this title) to cover the cost of
    instruction for any period of enrollment beginning on or after July
    1, 1988, to any borrower who, on the date of entering into the note
    or other written evidence of the loan, has no outstanding balance
    of principal or interest on any loan made, insured, or guaranteed
    under this part, the applicable rate of interest shall be - 
        (1) 8 percent per year on the unpaid principal balance of the
      loan during the period beginning on the date of the disbursement
      of the loan and ending 4 years after the commencement of
      repayment; and
        (2) 10 percent per year on the unpaid principal balance of the
      loan during the remainder of the repayment period.
    (e) Interest rates for new borrowers after October 1, 1992
      (1) In general
        Notwithstanding subsections (a), (b), and (d) of this section,
      with respect to any loan (other than a loan made pursuant to
      sections 1078-1,(!2) 1078-2 and 1078-3 of this title) for which
      the first disbursement is made on or after October 1, 1992, to
      any borrower who, on the date of entering into the note or other
      written evidence of the loan, has no outstanding balance of
      principal or interest on any loan made, insured, or guaranteed
      under section 1077, 1078, or 1078-8 of this title, the applicable
      rate of interest shall, during any 12-month period beginning on
      July 1 and ending on June 30, be determined on the preceding June
      1 and be equal to - 

          (A) the bond equivalent rate of 91-day Treasury bills
        auctioned at the final auction held prior to such June 1; plus
          (B) 3.10 percent,

      except that such rate shall not exceed 9 percent.
      (2) Consultation
        The Secretary shall determine the applicable rate of interest
      under paragraph (1) after consultation with the Secretary of the
      Treasury and shall publish such rate in the Federal Register as
      soon as practicable after the date of determination.
    (f) Interest rates for new loans after July 1, 1994
      (1) In general
        Notwithstanding subsections (a), (b), (d), and (e) of this
      section, with respect to any loan made, insured, or guaranteed
      under this part (other than a loan made pursuant to section 1078-
      2 or 1078-3 of this title) for which the first disbursement is
      made on or after July 1, 1994, the applicable rate of interest
      shall, during any 12-month period beginning on July 1 and ending
      on June 30, be determined on the preceding June 1 and be equal to
      - 
          (A) the bond equivalent rate of 91-day Treasury bills
        auctioned at the final auction held prior to such June 1; plus
          (B) 3.10 percent,

      except that such rate shall not exceed 8.25 percent.
      (2) Consultation
        The Secretary shall determine the applicable rate of interest
      under paragraph (1) after consultation with the Secretary of the
      Treasury and shall publish such rate in the Federal Register as
      soon as practicable after the date of determination.
    (g) In school and grace period rules
      (1) General rule
        Notwithstanding the provisions of subsection (f) of this
      section, but subject to subsection (h) of this section, with
      respect to any loan under section 1078 or 1078-8 of this title
      for which the first disbursement is made on or after July 1,
      1995, the applicable rate of interest for interest which accrues -
       
          (A) prior to the beginning of the repayment period of the
        loan; or
          (B) during the period in which principal need not be paid
        (whether or not such principal is in fact paid) by reason of a
        provision described in section 1078(b)(1)(M) or 1077(a)(2)(C)
        of this title,

      shall not exceed the rate determined under paragraph (2).
      (2) Rate determination
        For purposes of paragraph (1), the rate determined under this
      paragraph shall, during any 12-month period beginning on July 1
      and ending on June 30, be determined on the preceding June 1 and
      be equal to - 
          (A) the bond equivalent rate of 91-day Treasury bills
        auctioned at the final auction prior to such June 1; plus
          (B) 2.5 percent,

      except that such rate shall not exceed 8.25 percent.
      (3) Consultation
        The Secretary shall determine the applicable rate of interest
      under this subsection after consultation with the Secretary of
      the Treasury and shall publish such rate in the Federal Register
      as soon as practicable after the date of determination.
    (h) Interest rates for new loans after July 1, 1998
      (1) In general
        Notwithstanding subsections (a), (b), (d), (e), (f), and (g) of
      this section, with respect to any loan made, insured, or
      guaranteed under this part (other than a loan made pursuant to
      sections 1078-2 and 1078-3 of this title) for which the first
      disbursement is made on or after July 1, 1998, the applicable
      rate of interest shall, during any 12-month period beginning on
      July 1 and ending on June 30, be determined on the preceding June
      1 and be equal to - 
          (A) the bond equivalent rate of the securities with a
        comparable maturity as established by the Secretary; plus
          (B) 1.0 percent,

      except that such rate shall not exceed 8.25 percent.
      (2) Interest rates for new plus loans after July 1, 1998
        Notwithstanding subsections (a), (b), (d), (e), (f), and (g) of
      this section, with respect to any loan made under section 1078-2
      of this title for which the first disbursement is made on or
      after July 1, 1998, paragraph (1) shall be applied - 
          (A) by substituting "2.1 percent" for "1.0 percent" in
        subparagraph (B); and
          (B) by substituting "9.0 percent" for "8.25 percent" in the
        matter following such subparagraph.
      (3) Consultation
        The Secretary shall determine the applicable rate of interest
      under this subsection after consultation with the Secretary of
      the Treasury and shall publish such rate in the Federal Register
      as soon as practicable after the date of determination.
    (i) Treatment of excess interest payments on new borrower accounts
      resulting from decline in Treasury bill rates
      (1) Excess interest on 10 percent loans
        If, with respect to a loan for which the applicable interest
      rate is 10 percent under subsection (d) of this section at the
      close of any calendar quarter, the sum of the average of the bond
      equivalent rates of 91-day Treasury bills auctioned for that
      quarter and 3.25 percent is less than 10 percent, then an
      adjustment shall be made to a borrower's account - 
          (A) by calculating excess interest in the amount computed
        under paragraph (2) of this subsection; and
          (B)(i) during any period in which a student is eligible to
        have interest payments paid on his or her behalf by the
        Government pursuant to section 1078(a) of this title, by
        crediting the excess interest to the Government; or
          (ii) during any other period, by crediting such excess
        interest to the reduction of principal to the extent provided
        in paragraph (5) of this subsection.
      (2) Amount of adjustment for 10 percent loans
        The amount of any adjustment of interest on a loan to be made
      under this subsection for any quarter shall be equal to - 
          (A) 10 percent minus the sum of (i) the average of the bond
        equivalent rates of 91-day Treasury bills auctioned for such
        calendar quarter, and (ii) 3.25 percent; multiplied by
          (B) the average daily principal balance of the loan (not
        including unearned interest added to principal) during such
        calendar quarter; divided by
          (C) four.
      (3) Excess interest on loans after 1992 amendments, to borrowers
        with outstanding balances
        If, with respect to a loan made on or after July 23, 1992, to a
      borrower, who on the date of entering into the note or other
      written evidence of the loan, has an outstanding balance of
      principal or interest on any other loan made, insured, or
      guaranteed under this part, the sum of the average of the bond
      equivalent rates of 91-day Treasury bills auctioned for that
      quarter and 3.1 percent is less than the applicable interest
      rate, then an adjustment shall be made - 
          (A) by calculating excess interest in the amount computed
        under paragraph (4) of this subsection; and
          (B)(i) during any period in which a student is eligible to
        have interest payments paid on his or her behalf by the
        Government pursuant to section 1078(a) of this title, by
        crediting the excess interest to the Government; or
          (ii) during any other period, by crediting such excess
        interest to the reduction of principal to the extent provided
        in paragraph (5) of this subsection.
      (4) Amount of adjustment
        The amount of any adjustment of interest on a loan to be made
      under this subsection for any quarter shall be equal to - 
          (A) the applicable interest rate minus the sum of (i) the
        average of the bond equivalent rates of 91-day Treasury bills
        auctioned for such calendar quarter, and (ii) 3.1 percent;
        multiplied by
          (B) the average daily principal balance of the loan (not
        including unearned interest added to principal) during such
        calendar quarter; divided by
          (C) four.
      (5) Annual adjustment of interest and borrower eligibility for
        credit
        Any adjustment amount computed pursuant to paragraphs (2) and
      (4) of this subsection for any quarter shall be credited, by the
      holder of the loan on the last day of the calendar year in which
      such quarter falls, to the loan account of the borrower so as to
      reduce the principal balance of such account. No such credit
      shall be made to the loan account of a borrower who on the last
      day of the calendar year is delinquent for more than 30 days in
      making a required payment on the loan, but the excess interest
      shall be calculated and credited to the Secretary. Any credit
      which is to be made to a borrower's account pursuant to this
      subsection shall be made effective commencing no later than 30
      days following the last day of the calendar year in which the
      quarter falls for which the credit is being made. Nothing in this
      subsection shall be construed to require refunding any repayment
      of a loan. At the option of the lender, the amount of such
      adjustment may be distributed to the borrower either by reduction
      in the amount of the periodic payment on loan, by reducing the
      number of payments that shall be made with respect to the loan,
      or by reducing the amount of the final payment of the loan.
      Nothing in this paragraph shall be construed to require the
      lender to make additional disclosures pursuant to section 1083(b)
      of this title.
      (6) Publication of Treasury bill rate
        For the purpose of enabling holders of loans to make the
      determinations and adjustments provided for in this subsection,
      the Secretary shall for each calendar quarter commencing with the
      quarter beginning on July 1, 1987, publish a notice of the
      average of the bond equivalent rates of 91-day Treasury bills
      auctioned for such quarter. Such notice shall be published not
      later than 7 days after the end of the quarter to which the
      notice relates.
      (7) Conversion to variable rate
        (A) Subject to subparagraphs (C) and (D), a lender or holder
      shall convert the interest rate on a loan that is made pursuant
      to this part and is subject to the provisions of this subsection
      to a variable rate. Such conversion shall occur not later than
      January 1, 1995, and, commencing on the date of conversion, the
      applicable interest rate for each 12-month period beginning on
      July 1 and ending on June 30 shall be determined by the Secretary
      on the June 1 preceding each such 12-month period and be equal to
      the sum of (i) the bond equivalent rate of the 91-day Treasury
      bills auctioned at the final auction prior to such June 1; and
      (ii) 3.25 percent in the case of loans described in paragraph
      (1), or 3.10 percent in the case of loans described in paragraph
      (3).
        (B) In connection with the conversion specified in subparagraph
      (A) for any period prior to such conversion, and subject to
      paragraphs (C) and (D), a lender or holder shall convert the
      interest rate to a variable rate on a loan that is made pursuant
      to this part and is subject to the provisions of this subsection
      to a variable rate. The interest rates for such period shall be
      reset on a quarterly basis and the applicable interest rate for
      any quarter or portion thereof shall equal the sum of (i) the
      average of the bond equivalent rates of 91-Treasury bills
      auctioned for the preceding 3-month period, and (ii) 3.25 percent
      in the case of loans described in paragraph (1) or 3.10 percent
      in the case of loans described in paragraph (3). The rebate of
      excess interest derived through this conversion shall be provided
      to the borrower as specified in paragraph (5) for loans described
      in paragraph (1) or to the Government and borrower as specified
      in paragraph (3).
        (C) A lender or holder of a loan being converted pursuant to
      this paragraph shall complete such conversion on or before
      January 1, 1995. The lender or holder shall notify the borrower
      that the loan shall be converted to a variable interest rate and
      provide a description of the rate to the borrower not later than
      30 days prior to the conversion. The notice shall advise the
      borrower that such rate shall be calculated in accordance with
      the procedures set forth in this paragraph and shall provide the
      borrower with a substantially equivalent benefit as the
      adjustment otherwise provided for under this subsection. Such
      notice may be incorporated into the disclosure required under
      section 1083(b) of this title if such disclosure has not been
      previously made.
        (D) The interest rate on a loan converted to a variable rate
      pursuant to this paragraph shall not exceed the maximum interest
      rate applicable to the loan prior to such conversion.
        (E) Loans on which the interest rate is converted in accordance
      with subparagraph (A) or (B) shall not be subject to any other
      provisions of this subsection.
    (j) Interest rates for new loans between July 1, 1998 and October
      1, 1998
      (1) In general
        Notwithstanding subsection (h) of this section, but subject to
      paragraph (2), with respect to any loan made, insured, or
      guaranteed under this part (other than a loan made pursuant to
      section 1078-2 or 1078-3 of this title) for which the first
      disbursement is made on or after July 1, 1998, and before October
      1, 1998, the applicable rate of interest shall, during any 12-
      month period beginning on July 1 and ending on June 30, be
      determined on the preceding June 1 and be equal to - 
          (A) the bond equivalent rate of 91-day Treasury bills
        auctioned at the final auction held prior to such June 1; plus
          (B) 2.3 percent,

      except that such rate shall not exceed 8.25 percent.
      (2) In school and grace period rules
        Notwithstanding subsection (h) of this section, with respect to
      any loan under this part (other than a loan made pursuant to
      section 1078-2 or 1078-3 of this title) for which the first
      disbursement is made on or after July 1, 1998, and before October
      1, 1998, the applicable rate of interest for interest which
      accrues - 
          (A) prior to the beginning of the repayment period of the
        loan; or
          (B) during the period in which principal need not be paid
        (whether or not such principal is in fact paid) by reason of a
        provision described in section 1078(b)(1)(M) or 1077(a)(2)(C)
        of this title,

      shall be determined under paragraph (1) by substituting "1.7
      percent" for "2.3 percent".
      (3) PLUS loans
        Notwithstanding subsection (h) of this section, with respect to
      any loan under section 1078-2 of this title for which the first
      disbursement is made on or after July 1, 1998, and before October
      1, 1998, the applicable rate of interest shall, during any 12-
      month period beginning on July 1 and ending on June 30, be
      determined on the preceding June 1 and be equal to the lesser of -
       
          (A)(i) the bond equivalent rate of 91-day Treasury bills
        auctioned at the final auction held prior to such June 1; plus
          (ii) 3.1 percent; or
          (B) 9.0 percent.
      (4) Consultation
        The Secretary shall determine the applicable rate of interest
      under this subsection after consultation with the Secretary of
      the Treasury and shall publish such rate in the Federal Register
      as soon as practicable after the date of determination.
    (k) Interest rates for new loans on or after October 1, 1998, and
      before July 1, 2006
      (1) In general
        Notwithstanding subsection (h) of this section and subject to
      paragraph (2) of this subsection, with respect to any loan made,
      insured, or guaranteed under this part (other than a loan made
      pursuant to section 1078-2 or 1078-3 of this title) for which the
      first disbursement is made on or after October 1, 1998, and
      before July 1, 2006, the applicable rate of interest shall,
      during any 12-month period beginning on July 1 and ending on June
      30, be determined on the preceding June 1 and be equal to - 
          (A) the bond equivalent rate of 91-day Treasury bills
        auctioned at the final auction held prior to such June 1; plus
          (B) 2.3 percent,

      except that such rate shall not exceed 8.25 percent.
      (2) In school and grace period rules
        Notwithstanding subsection (h) of this section, with respect to
      any loan under this part (other than a loan made pursuant to
      section 1078-2 or 1078-3 of this title) for which the first
      disbursement is made on or after October 1, 1998, and before July
      1, 2006, the applicable rate of interest for interest which
      accrues - 
          (A) prior to the beginning of the repayment period of the
        loan; or
          (B) during the period in which principal need not be paid
        (whether or not such principal is in fact paid) by reason of a
        provision described in section 1077(a)(2)(C) or 1078(b)(1)(M)
        of this title,

      shall be determined under paragraph (1) by substituting "1.7
      percent" for "2.3 percent".
      (3) PLUS loans
        Notwithstanding subsection (h) of this section, with respect to
      any loan under section 1078-2 of this title for which the first
      disbursement is made on or after October 1, 1998, and before July
      1, 2006, the applicable rate of interest shall be determined
      under paragraph (1) - 
          (A) by substituting "3.1 percent" for "2.3 percent"; and
          (B) by substituting "9.0 percent" for "8.25 percent".
      (4) Consolidation loans
        With respect to any consolidation loan under section 1078-3 of
      this title for which the application is received by an eligible
      lender on or after October 1, 1998, and before July 1, 2006, the
      applicable rate of interest shall be at an annual rate on the
      unpaid principal balance of the loan that is equal to the lesser
      of - 
          (A) the weighted average of the interest rates on the loans
        consolidated, rounded to the nearest higher one-eighth of 1
        percent; or
          (B) 8.25 percent.
      (5) Consultation
        The Secretary shall determine the applicable rate of interest
      under this subsection after consultation with the Secretary of
      the Treasury and shall publish such rate in the Federal Register
      as soon as practicable after the date of determination.
    (l) Interest rates for new loans on or after July 1, 2006
      (1) In general
        Notwithstanding subsection (h) of this section, with respect to
      any loan made, insured, or guaranteed under this part (other than
      a loan made pursuant to section 1078-2 or 1078-3 of this title)
      for which the first disbursement is made on or after July 1,
      2006, the applicable rate of interest shall be 6.8 percent on the
      unpaid principal balance of the loan.
      (2) PLUS loans
        Notwithstanding subsection (h) of this section, with respect to
      any loan under section 1078-2 of this title for which the first
      disbursement is made on or after July 1, 2006, the applicable
      rate of interest shall be 8.5 percent on the unpaid principal
      balance of the loan.
      (3) Consolidation loans
        With respect to any consolidation loan under section 1078-3 of
      this title for which the application is received by an eligible
      lender on or after July 1, 2006, the applicable rate of interest
      shall be at an annual rate on the unpaid principal balance of the
      loan that is equal to the lesser of - 
          (A) the weighted average of the interest rates on the loans
        consolidated, rounded to the nearest higher one-eighth of 1
        percent; or
          (B) 8.25 percent.
    (m) Lesser rates permitted
      Nothing in this section or section 1078-3 of this title shall be
    construed to prohibit a lender from charging a borrower interest at
    a rate less than the rate which is applicable under this part.
    (n) Definitions
      For the purpose of subsections (a) and (d) of this section - 
        (1) the term "period of instruction" shall, at the discretion
      of the lender, be any academic year, semester, trimester,
      quarter, or other academic period; or shall be the period for
      which the loan is made as determined by the institution of higher
      education; and
        (2) the term "period of enrollment" shall be the period for
      which the loan is made as determined by the institution of higher
      education and shall coincide with academic terms such as academic
      year, semester, trimester, quarter, or other academic period as
      defined by such institution.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 427A, as added Pub. L. 99-498,
    title IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1364; amended Pub.
    L. 100-50, Sec. 10(d)(1), June 3, 1987, 101 Stat. 342; Pub. L. 102-
    325, title IV, Sec. 415, July 23, 1992, 106 Stat. 514; Pub. L. 103-
    66, title IV, Sec. 4101, Aug. 10, 1993, 107 Stat. 364; Pub. L. 103-
    208, Sec. 2(c)(5)-(10), Dec. 20, 1993, 107 Stat. 2461; Pub. L. 105-
    178, title VIII, Sec. 8301(a)(1), June 9, 1998, 112 Stat. 496;
    Pub. L. 105-244, title IV, Sec. 416(a)(1), Oct. 7, 1998, 112 Stat.
    1679; Pub. L. 106-554, Sec. 1(a)(1) [title III, Sec. 318(a)], Dec.
    21, 2000, 114 Stat. 2763, 2763A-49; Pub. L. 107-139, Sec. 1(a)(1),
    (c), Feb. 8, 2002, 116 Stat. 8, 9; Pub. L. 109-171, title VIII,
    Sec. 8006(a), Feb. 8, 2006, 120 Stat. 159.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1078-1 of this title, referred to in subsecs. (c) to
    (e)(1), was repealed by Pub. L. 103-66, title IV, Sec. 4047(b)-(d),
    Aug. 10, 1993, 107 Stat. 364, eff. July 1, 1994, except with
    respect to loans provided under that section as it existed prior to
    Aug. 10, 1993. Subsequently, a new section 1078-1, relating to
    voluntary flexible agreements with guaranty agencies, was enacted
    by Pub. L. 105-244, title IV, Sec. 418, Oct. 7, 1998, 112 Stat.
    1691.

-COD-
                               CODIFICATION                           
      Amendments by section 2(c)(6)-(10) of Pub. L. 103-208 (which were
    effective as if included in Pub. L. 102-325) were executed to this
    section as amended by Pub. L. 102-325 and Pub. L. 103-66, to
    reflect the probable intent of Congress.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1077a, Pub. L. 89-329, title IV, Sec. 427A, as
    added Pub. L. 96-374, title IV, Sec. 415(a)(1), Oct. 3, 1980, 94
    Stat. 1419; amended Pub. L. 97-35, title V, Sec. 534(a)(1), Aug.
    13, 1981, 95 Stat. 454; Pub. L. 98-79, Sec. 5(a), (b)(1), Aug. 15,
    1983, 97 Stat. 481, 482, prescribed applicable interest rates on
    loans, prior to the general revision of this part by Pub. L. 99-
    498.

                                AMENDMENTS                            
      2006 - Subsec. (l)(2). Pub. L. 109-171 substituted "8.5 percent"
    for "7.9 percent".
      2002 - Subsec. (k). Pub. L. 107-139, Sec. 1(c), substituted
    "2006" for "2003" in heading and "July 1, 2006," for "July 1,
    2003," wherever appearing in text.
      Subsecs. (l) to (n). Pub. L. 107-139, Sec. 1(a)(1), added subsec.
    (l) and redesignated former subsecs. (l) and (m) as (m) and (n),
    respectively.
      2000 - Subsec. (c)(4)(B). Pub. L. 106-554 amended subpar. (B)
    generally. Prior to amendment, subpar. (B) read as follows: "For
    any 12-month period beginning on July 1 and ending on June 30, the
    rate determined under this subparagraph is determined on the
    preceding June 1 and is equal to - 
        "(i) the bond equivalent rate of 52-week Treasury bills
      auctioned at the final auction held prior to such June 1; plus
        "(ii) 3.25 percent."
      1998 - Subsec. (j). Pub. L. 105-178, Sec. 8301(a)(1)(B), added
    subsec. (j). Former subsec. (j) redesignated (k).
      Subsec. (k). Pub. L. 105-244, Sec. 416(a)(1)(B), added subsec.
    (k). Former subsec. (k) redesignated (l).
      Pub. L. 105-178, Sec. 8301(a)(1)(A), redesignated subsec. (j) as
    (k). Former subsec. (k) redesignated (l).
      Subsec. (l). Pub. L. 105-244, Sec. 416(a)(1)(A), redesignated
    subsec. (k) as (l). Former subsec. (l) redesignated (m).
      Pub. L. 105-178, Sec. 8301(a)(1)(A), redesignated subsec. (k) as
    (l).
      Subsec. (m). Pub. L. 105-244, Sec. 416(a)(1)(A), redesignated
    subsec. (l) as (m).
      1993 - Subsec. (c)(4)(E). Pub. L. 103-66, Sec. 4101(1), added
    subpar. (E).
      Subsec. (e)(1). Pub. L. 103-208, Sec. 2(c)(5), substituted "under
    section 1077, 1078, or 1078-8 of this title" for "under this part".
      Subsecs. (f) to (h). Pub. L. 103-66, Sec. 4101(3), added subsecs.
    (f) to (h). Former subsecs. (f) to (h) redesignated (i) to (k),
    respectively.
      Subsec. (i). Pub. L. 103-66, Sec. 4101(2), redesignated subsec.
    (f) as (i).
      Subsec. (i)(1)(B). Pub. L. 103-208, Sec. 2(c)(6), amended subpar.
    (B) generally. Prior to amendment, subpar. (B) read as follows: "by
    crediting the excess interest to the reduction of principal to the
    extent provided for under paragraph (5) of this subsection." See
    Codification note above.
      Subsec. (i)(2)(B). Pub. L. 103-208, Sec. 2(c)(7), substituted
    "average daily principal balance" for "outstanding principal
    balance" and "during" for "at the end of". See Codification note
    above.
      Subsec. (i)(4)(B). Pub. L. 103-208, Sec. 2(c)(8), substituted
    "average daily principal balance" for "outstanding principal
    balance" and "during" for "at the end of". See Codification note
    above.
      Subsec. (i)(5). Pub. L. 103-208, Sec. 2(c)(9)(A)(i), (B),
    substituted "paragraphs (2) and (4)" for "paragraph (2)" in first
    sentence and inserted ", but the excess interest shall be
    calculated and credited to the Secretary" after "required payment
    on the loan" in second sentence. See Codification note above.
      Pub. L. 103-208, Sec. 2(c)(9)(A)(ii), which directed substitution
    of "principal" for "principle" in first sentence, could not be
    executed because the word "principle" does not appear in text.
      Subsec. (i)(7). Pub. L. 103-208, Sec. 2(c)(10), added par. (7).
    See Codification note above.
      Subsecs. (j), (k). Pub. L. 103-66, Sec. 4101(2), redesignated
    subsecs. (g) and (h) as (j) and (k), respectively.
      1992 - Subsec. (c)(4)(D). Pub. L. 102-325, Sec. 415(a), added
    subpar. (D).
      Subsec. (e). Pub. L. 102-325, Sec. 415(c)(2), added subsec. (e).
    Former subsec. (e) redesignated (f).
      Pub. L. 102-325, Sec. 415(b), amended par. (1) heading and
    substituted "paragraph (5)" for "paragraph (3)" in par. (1)(B),
    amended par. (2) heading, added pars. (3) and (4), redesignated
    former par. (3) as (5), struck out "or" before "by reducing the
    number" and inserted ", or by reducing the amount of the final
    payment of the loan. Nothing in this paragraph shall be construed
    to require the lender to make additional disclosures pursuant to
    section 1083(b) of this title" before period at end, redesignated
    former par. (4) as (6), and struck out former par. (5) which
    provided for study of treatment of excess interest payments
    provisions.
      Subsecs. (f) to (h). Pub. L. 102-325, Sec. 415(c)(1),
    redesignated subsecs. (e) to (g) as (f) to (h), respectively.
      1987 - Subsec. (c)(4)(A). Pub. L. 100-50, Sec. 10(d)(1)(A), (B),
    substituted "and disbursed on or after July 1, 1987" for "to cover
    the cost of instruction for any period of enrollment beginning on
    or after July 1, 1987" and "any 12-month period beginning on or
    after July 1 and ending on June 30" for "any calendar year".
      Subsec. (c)(4)(B). Pub. L. 100-50, Sec. 10(d)(1)(C), added
    subpar. (B) and struck out former subpar. (B) which read as
    follows: "For any calendar year, the rate determined under this
    subparagraph is determined on December 15 preceding such calendar
    year and is equal to - 
        "(i) the average of the bond equivalent rates of 91-day
      Treasury bills auctioned during the 12 months ending on November
      30 preceding such calendar year; plus
        "(ii) 3.75 percent."

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-244, title IV, Sec. 416(c), Oct. 7, 1998, 112 Stat.
    1682, provided that: "The amendments made by this section [amending
    this section and sections 1078-2, 1078-3, and 1087-1 of this title]
    shall apply with respect to any loan made, insured, or guaranteed
    under part B of title IV of the Higher Education Act of 1965 [20
    U.S.C. 1071 et seq.] for which the first disbursement is made on or
    after October 1, 1998, and before July 1, 2003, except that such
    amendments shall apply with respect to any loan made under section
    428C of such Act [20 U.S.C. 1078-3] for which the application is
    received by an eligible lender on or after October 1, 1998, and
    before July 1, 2003."

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by section 2(c)(5) of Pub. L. 103-208 effective on and
    after Dec. 20, 1993, and amendment by section 2(c)(6)-(10) of Pub.
    L. 103-208 effective, except as otherwise provided, as if included
    in the Higher Education Amendments of 1992, Pub. L. 102-325, 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 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.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1078                                            01/03/2007

-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. 1078. Federal payments to reduce student interest costs

-STATUTE-
    (a) Federal interest subsidies
      (1) Types of loans that qualify
        Each student who has received a loan for study at an eligible
      institution - 
          (A) which is insured by the Secretary under this part; or
          (B) which is insured under a program of a State or of a
        nonprofit private institution or organization which was
        contracted for, and paid to the student, within the period
        specified in paragraph (5), and which - 
            (i) in the case of a loan insured prior to July 1, 1967,
          was made by an eligible lender and is insured under a program
          which meets the requirements of subparagraph (E) of
          subsection (b)(1) of this section and provides that repayment
          of such loan shall be in installments beginning not earlier
          than 60 days after the student ceases to pursue a course of
          study (as described in subparagraph (D) of subsection (b)(1)
          of this section) at an eligible institution, or
            (ii) in the case of a loan insured after June 30, 1967, was
          made by an eligible lender and is insured under a program
          covered by an agreement made pursuant to subsection (b) of
          this section,

      shall be entitled to have paid on his or her behalf and for his
      or her account to the holder of the loan a portion of the
      interest on such loan under circumstances described in paragraph
      (2).
      (2) Additional requirements to receive subsidy
        (A) Each student qualifying for a portion of an interest
      payment under paragraph (1) shall - 
          (i) have provided to the lender a statement from the eligible
        institution, at which the student has been accepted for
        enrollment, or at which the student is in attendance, which - 
            (I) sets forth the loan amount for which the student shows
          financial need; and
            (II) sets forth a schedule for disbursement of the proceeds
          of the loan in installments, consistent with the requirements
          of section 1078-7 of this title; and

          (ii) meet the requirements of subparagraph (B); and
          (iii) have provided to the lender at the time of application
        for a loan made, insured, or guaranteed under this part, the
        student's driver's number, if any.

        (B) For the purpose of clause (ii) of subparagraph (A), a
      student shall qualify for a portion of an interest payment under
      paragraph (1) if the eligible institution has determined and
      documented the student's amount of need for a loan based on the
      student's estimated cost of attendance, estimated financial
      assistance, and, for the purpose of an interest payment pursuant
      to this section, expected family contribution (as determined
      under part E of this subchapter), subject to the provisions of
      subparagraph (D).
        (C) For the purpose of subparagraph (B) and this paragraph - 
          (i) a student's cost of attendance shall be determined under
        section 1087ll of this title;
          (ii) a student's estimated financial assistance means, for
        the period for which the loan is sought - 
            (I) the amount of assistance such student will receive
          under subpart 1 of part A of this subchapter (as determined
          in accordance with section 1091(b) of this title), subpart 3
          of part A of this subchapter, and part C of subchapter I of
          chapter 34 of title 42 and part D of this subchapter;
            (II) any veterans' education benefits paid because of
          enrollment in a postsecondary education institution,
          including veterans' education benefits (as defined in section
          1087vv(c) of this title, but excluding benefits described in
          paragraph (2)(E) of such section); plus
            (III) other scholarship, grant, or loan assistance, but
          excluding any national service education award or post-
          service benefit under title I of the National and Community
          Service Act of 1990 [42 U.S.C. 12511 et seq.]; and

          (iii) the determination of need and of the amount of a loan
        by an eligible institution under subparagraph (B) with respect
        to a student shall be calculated in accordance with part E of
        this subchapter.

        (D) An eligible institution may not, in carrying out the
      provisions of subparagraphs (A) and (B) of this paragraph,
      provide a statement which certifies the eligibility of any
      student to receive any loan under this part in excess of the
      maximum amount applicable to such loan.
        (E) For the purpose of subparagraphs (B) and (C) of this
      paragraph, any loan obtained by a student under section 1078-1
      (!1) or 1078-8 of this title or a parent under section 1078-2 of
      this title or under any State-sponsored or private loan program
      for an academic year for which the determination is made may be
      used to offset the expected family contribution of the student
      for that year.

      (3) Amount of interest subsidy
        (A)(i) Subject to section 1087-1(c) of this title, the portion
      of the interest on a loan which a student is entitled to have
      paid, on behalf of and for the account of the student, to the
      holder of the loan pursuant to paragraph (1) of this subsection
      shall be equal to the total amount of the interest on the unpaid
      principal amount of the loan - 
          (I) which accrues prior to the beginning of the repayment
        period of the loan, or
          (II) which accrues during a period in which principal need
        not be paid (whether or not such principal is in fact paid) by
        reason of a provision described in subsection (b)(1)(M) of this
        section or in section 1077(a)(2)(C) of this title.

        (ii) Such portion of the interest on a loan shall not exceed,
      for any period, the amount of the interest on that loan which is
      payable by the student after taking into consideration the amount
      of any interest on that loan which the student is entitled to
      have paid on his or her behalf for that period under any State or
      private loan insurance program.
        (iii) The holder of a loan with respect to which payments are
      required to be made under this section shall be deemed to have a
      contractual right, as against the United States, to receive from
      the Secretary the portion of interest which has been so
      determined without administrative delay after the receipt by the
      Secretary of an accurate and complete request for payment
      pursuant to paragraph (4).
        (iv) The Secretary shall pay this portion of the interest to
      the holder of the loan on behalf of and for the account of the
      borrower at such times as may be specified in regulations in
      force when the applicable agreement entered into pursuant to
      subsection (b) of this section was made, or, if the loan was made
      by a State or is insured under a program which is not covered by
      such an agreement, at such times as may be specified in
      regulations in force at the time the loan was paid to the
      student.
        (v) A lender may not receive interest on a loan for any period
      that precedes the date that is - 
          (I) in the case of a loan disbursed by check, 10 days before
        the first disbursement of the loan;
          (II) in the case of a loan disbursed by electronic funds
        transfer, 3 days before the first disbursement of the loan; or
          (III) in the case of a loan disbursed through an escrow
        agent, 3 days before the first disbursement of the loan.

        (B) If - 
          (i) a State student loan insurance program is covered by an
        agreement under subsection (b) of this section,
          (ii) a statute of such State limits the interest rate on
        loans insured by such program to a rate which is less than the
        applicable interest rate under this part, and
          (iii) the Secretary determines that subsection (d) of this
        section does not make such statutory limitation inapplicable
        and that such statutory limitation threatens to impede the
        carrying out of the purpose of this part,

      then the Secretary may pay an administrative cost allowance to
      the holder of each loan which is insured under such program and
      which is made during the period beginning on the 60th day after
      October 16, 1968, and ending 120 days after the adjournment of
      such State's first regular legislative session which adjourns
      after January 1, 1969. Such administrative cost allowance shall
      be paid over the term of the loan in an amount per year
      (determined by the Secretary) which shall not exceed 1 percent of
      the unpaid principal balance of the loan.
      (4) Submission of statements by holders on amount of payment
        Each holder of a loan with respect to which payments of
      interest are required to be made by the Secretary shall submit to
      the Secretary, at such time or times and in such manner as the
      Secretary may prescribe, statements containing such information
      as may be required by or pursuant to regulation for the purpose
      of enabling the Secretary to determine the amount of the payment
      which he must make with respect to that loan.
      (5) Duration of authority to make interest subsidized loans
        The period referred to in subparagraph (B) of paragraph (1) of
      this subsection shall begin on November 8, 1965, and end at the
      close of September 30, 2012, except that, in the case of a loan
      made or insured under a student loan or loan insurance program to
      enable a student who has obtained a prior loan made or insured
      under such program to continue his or her education program, such
      period shall end at the close of September 30, 2016.
      (6) Assessment of borrower's financial condition not prohibited
        or required
        Nothing in this chapter or any other Act shall be construed to
      prohibit or require, unless otherwise specifically provided by
      law, a lender to evaluate the total financial situation of a
      student making application for a loan under this part, or to
      counsel a student with respect to any such loan, or to make a
      decision based on such evaluation and counseling with respect to
      the dollar amount of any such loan.
      (7) Loans that have not been consummated
        Lenders may not charge interest or receive interest subsidies
      or special allowance payments for loans for which the
      disbursement checks have not been cashed or for which electronic
      funds transfers have not been completed.
    (b) Insurance program agreements to qualify loans for interest
      subsidies
      (1) Requirements of insurance program
        Any State or any nonprofit private institution or organization
      may enter into an agreement with the Secretary for the purpose of
      entitling students who receive loans which are insured under a
      student loan insurance program of that State, institution, or
      organization to have made on their behalf the payments provided
      for in subsection (a) of this section if the Secretary determines
      that the student loan insurance program - 
          (A) authorizes the insurance in any academic year, as defined
        in section 1088(a)(2) of this title, or its equivalent (as
        determined under regulations of the Secretary) for any student
        who is carrying at an eligible institution or in a program of
        study abroad approved for credit by the eligible home
        institution at which such student is enrolled at least one-half
        the normal full-time academic workload (as determined by the
        institution) in any amount up to a maximum of - 
            (i) in the case of a student at an eligible institution who
          has not successfully completed the first year of a program of
          undergraduate education - 
              (I) $2,625, if such student is enrolled in a program
            whose length is at least one academic year in length; and
              (II) if such student is enrolled in a program of
            undergraduate education which is less than 1 academic year,
            the maximum annual loan amount that such student may
            receive may not exceed the amount that bears the same ratio
            to the amount specified in subclause (I) as the length of
            such program measured in semester, trimester, quarter, or
            clock hours bears to 1 academic year;

            (ii) in the case of a student at an eligible institution
          who has successfully completed such first year but has not
          successfully completed the remainder of a program of
          undergraduate education - 
              (I) $3,500; or
              (II) if such student is enrolled in a program of
            undergraduate education, the remainder of which is less
            than one academic year, the maximum annual loan amount that
            such student may receive may not exceed the amount that
            bears the same ratio to the amount specified in subclause
            (I) as such remainder measured in semester, trimester,
            quarter, or clock hours bears to one academic year;

            (iii) in the case of a student at an eligible institution
          who has successfully completed the first and second years of
          a program of undergraduate education but has not successfully
          completed the remainder of such program - 
              (I) $5,500; or
              (II) if such student is enrolled in a program of
            undergraduate education, the remainder of which is less
            than one academic year, the maximum annual loan amount that
            such student may receive may not exceed the amount that
            bears the same ratio to the amount specified in subclause
            (I) as such remainder measured in semester, trimester,
            quarter, or clock hours bears to one academic year;

            (iv) in the case of a student who has received an associate
          or baccalaureate degree and is enrolled in an eligible
          program for which the institution requires such degree for
          admission, the number of years that a student has completed
          in a program of undergraduate education shall, for the
          purposes of clauses (ii) and (iii), include any prior
          enrollment in the eligible program of undergraduate education
          for which the student was awarded such degree;
            (v) in the case of a graduate or professional student (as
          defined in regulations of the Secretary) at an eligible
          institution, $8,500; and
            (vi) in the case of a student enrolled in coursework
          specified in sections 1091(b)(3)(B) and 1091(b)(4)(B) of this
          title - 
              (I) $2,625 for coursework necessary for enrollment in an
            undergraduate degree or certificate program, and, in the
            case of a student who has obtained a baccalaureate degree,
            $5,500 for coursework necessary for enrollment in a
            graduate or professional degree or certification program;
            and
              (II) in the case of a student who has obtained a
            baccalaureate degree, $5,500 for coursework necessary for a
            professional credential or certification from a State
            required for employment as a teacher in an elementary
            school or secondary school;

        except in cases where the Secretary determines, pursuant to
        regulations, that a higher amount is warranted in order to
        carry out the purpose of this part with respect to students
        engaged in specialized training requiring exceptionally high
        costs of education, but the annual insurable limit per student
        shall not be deemed to be exceeded by a line of credit under
        which actual payments by the lender to the borrower will not be
        made in any years in excess of the annual limit;
          (B) provides that the aggregate insured unpaid principal
        amount for all such insured loans made to any student shall be
        any amount up to a maximum of - 
            (i) $23,000, in the case of any student who has not
          successfully completed a program of undergraduate education,
          excluding loans made under section 1078-1 (!2) or 1078-2 of
          this title; and

            (ii) $65,500, in the case of any graduate or professional
          student (as defined by regulations of the Secretary), and (I)
          including any loans which are insured by the Secretary under
          this section, or by a guaranty agency, made to such student
          before the student became a graduate or professional student,
          but (II) excluding loans made under section 1078-1 (!2) or
          1078-2 of this title,

        except that the Secretary may increase the limit applicable to
        students who are pursuing programs which the Secretary
        determines are exceptionally expensive;
          (C) authorizes the insurance of loans to any individual
        student for at least 6 academic years of study or their
        equivalent (as determined under regulations of the Secretary);
          (D) provides that (i) the student borrower shall be entitled
        to accelerate without penalty the whole or any part of an
        insured loan, (ii) the student borrower may annually change the
        selection of a repayment plan under this part, and (iii) the
        note, or other written evidence of any loan, may contain such
        reasonable provisions relating to repayment in the event of
        default by the borrower as may be authorized by regulations of
        the Secretary in effect at the time such note or written
        evidence was executed, and shall contain a notice that
        repayment may, following a default by the borrower, be subject
        to income contingent repayment in accordance with subsection
        (m) of this section;
          (E) subject to subparagraphs (D) and (L), and except as
        provided by subparagraph (M), provides that - 
            (i) not more than 6 months prior to the date on which the
          borrower's first payment is due, the lender shall offer the
          borrower of a loan made, insured, or guaranteed under this
          section or section 1078-8 of this title, the option of
          repaying the loan in accordance with a standard, graduated,
          income-sensitive, or extended repayment schedule (as
          described in paragraph (9)) established by the lender in
          accordance with regulations of the Secretary; and
            (ii) repayment of loans shall be in installments in
          accordance with the repayment plan selected under paragraph
          (9) and commencing at the beginning of the repayment period
          determined under paragraph (7);

          (F) authorizes interest on the unpaid balance of the loan at
        a yearly rate not in excess (exclusive of any premium for
        insurance which may be passed on to the borrower) of the rate
        required by section 1077a of this title;
          (G) insures 98 percent of the unpaid principal of loans
        insured under the program, except that - 
            (i) such program shall insure 100 percent of the unpaid
          principal of loans made with funds advanced pursuant to
          subsection (j) or section 1087-2(q) of this title;
            (ii) for any loan for which the first disbursement of
          principal is made on or after July 1, 2006, the preceding
          provisions of this subparagraph shall be applied by
          substituting "97 percent" for "98 percent"; and
            (iii) notwithstanding the preceding provisions of this
          subparagraph, such program shall insure 100 percent of the
          unpaid principal amount of exempt claims as defined in
          subsection (c)(1)(G);

          (H) provides - 
            (i) for loans for which the date of guarantee of principal
          is before July 1, 2006, for the collection of a single
          insurance premium equal to not more than 1.0 percent of the
          principal amount of the loan, by deduction proportionately
          from each installment payment of the proceeds of the loan to
          the borrower, and ensures that the proceeds of the premium
          will not be used for incentive payments to lenders; or
            (ii) for loans for which the date of guarantee of principal
          is on or after July 1, 2006, for the collection, and the
          deposit into the Federal Student Loan Reserve Fund under
          section 1072a of this title of a Federal default fee of an
          amount equal to 1.0 percent of the principal amount of the
          loan, which fee shall be collected either by deduction from
          the proceeds of the loan or by payment from other non-Federal
          sources, and ensures that the proceeds of the Federal default
          fee will not be used for incentive payments to lenders;

          (I) provides that the benefits of the loan insurance program
        will not be denied any student who is eligible for interest
        benefits under subsection (a)(1) and (2) of this section;
          (J) provides that a student may obtain insurance under the
        program for a loan for any year of study at an eligible
        institution;
          (K) in the case of a State program, provides that such State
        program is administered by a single State agency, or by one or
        more nonprofit private institutions or organizations under
        supervision of a single State agency;
          (L) provides that the total of the payments by borrower - 
            (i) except as otherwise provided by a repayment plan
          selected by the borrower under clause (ii) or (iii) of
          paragraph (9)(A), during any year of any repayment period
          with respect to the aggregate amount of all loans to that
          borrower which are insured under this part shall not, unless
          the borrower and the lender otherwise agree, be less than
          $600 or the balance of all such loans (together with interest
          thereon), whichever amount is less (but in no instance less
          than the amount of interest due and payable, notwithstanding
          any payment plan under paragraph (9)(A)); and
            (ii) for a monthly or other similar payment period with
          respect to the aggregate of all loans held by the lender may,
          when the amount of a monthly or other similar payment is not
          a multiple of $5, be rounded to the next highest whole dollar
          amount that is a multiple of $5;

          (M) provides that periodic installments of principal need not
        be paid, but interest shall accrue and be paid by the
        Secretary, during any period - 
            (i) during which the borrower - 
              (I) is pursuing at least a half-time course of study as
            determined by an eligible institution, except that no
            borrower, notwithstanding the provisions of the promissory
            note, shall be required to borrow an additional loan under
            this subchapter and part C of subchapter I of chapter 34 of
            title 42 in order to be eligible to receive a deferment
            under this clause; or
              (II) is pursuing a course of study pursuant to a graduate
            fellowship program approved by the Secretary, or pursuant
            to a rehabilitation training program for disabled
            individuals approved by the Secretary,

          except that no borrower shall be eligible for a deferment
          under this clause, or loan made under this part (other than a
          loan made under (!3) 1078-2 or 1078-3 of this title), while
          serving in a medical internship or residency program;

            (ii) not in excess of 3 years during which the borrower is
          seeking and unable to find full-time employment, except that
          no borrower who provides evidence of eligibility for
          unemployment benefits shall be required to provide additional
          paperwork for a deferment under this clause;
            (iii) not in excess of 3 years during which the borrower - 
              (I) is serving on active duty during a war or other
            military operation or national emergency; or
              (II) is performing qualifying National Guard duty during
            a war or other military operation or national emergency; or

            (iv) not in excess of 3 years for any reason which the
          lender determines, in accordance with regulations prescribed
          by the Secretary under section 1085(o) of this title, has
          caused or will cause the borrower to have an economic
          hardship;

          (N) provides that funds borrowed by a student - 
            (i) are disbursed to the institution by check or other
          means that is payable to, and requires the endorsement or
          other certification by, such student;
            (ii) in the case of a student who is studying outside the
          United States in a program of study abroad that is approved
          for credit by the home institution at which such student is
          enrolled, and only after verification of the student's
          enrollment by the lender or guaranty agency, are, at the
          request of the student, disbursed directly to the student by
          the means described in clause (i), unless such student
          requests that the check be endorsed, or the funds transfer be
          authorized, pursuant to an authorized power-of-attorney; or
            (iii) in the case of a student who is studying outside the
          United States in a program of study at an eligible foreign
          institution, are, at the request of the foreign institution,
          disbursed directly to the student, only after verification of
          the student's enrollment by the lender or guaranty agency by
          the means described in clause (i).(!4)


          (O) provides that the proceeds of the loans will be disbursed
        in accordance with the requirements of section 1078-7 of this
        title;
          (P) requires the borrower to notify the institution
        concerning any change in local address during enrollment and
        requires the borrower and the institution at which the borrower
        is in attendance promptly to notify the holder of the loan,
        directly or through the guaranty agency, concerning (i) any
        change of permanent address, (ii) when the student ceases to be
        enrolled on at least a half-time basis, and (iii) any other
        change in status, when such change in status affects the
        student's eligibility for the loan;
          (Q) provides for the guarantee of loans made to students and
        parents under sections 1078-1 (!5) and 1078-2 of this title;

          (R) with respect to lenders which are eligible institutions,
        provides for the insurance of loans by only such institutions
        as are located within the geographic area served by such
        guaranty agency;
          (S) provides no restrictions with respect to the insurance of
        loans for students who are otherwise eligible for loans under
        such program if such a student is accepted for enrollment in or
        is attending an eligible institution within the State, or if
        such a student is a legal resident of the State and is accepted
        for enrollment in or is attending an eligible institution
        outside that State;
          (T) authorizes (i) the limitation of the total number of
        loans or volume of loans, made under this part to students
        attending a particular eligible institution during any academic
        year; and (ii) the limitation, suspension, or termination of
        the eligibility of an eligible institution if - 
            (I) such institution is ineligible for the emergency
          action, limitation, suspension, or termination of eligible
          institutions under regulations issued by the Secretary or is
          ineligible pursuant to criteria, rules, or regulations issued
          under the student loan insurance program which are
          substantially the same as regulations with respect to
          emergency action, limitation, suspension, or termination of
          such eligibility issued by the Secretary;
            (II) there is a State constitutional prohibition affecting
          the eligibility of such an institution;
            (III) such institution fails to make timely refunds to
          students as required by regulations issued by the Secretary
          or has not satisfied within 30 days of issuance a final
          judgment obtained by a student seeking such a refund;
            (IV) such institution or an owner, director, or officer of
          such institution is found guilty in any criminal, civil, or
          administrative proceeding, or such institution or an owner,
          director, or officer of such institution is found liable in
          any civil or administrative proceeding, regarding the
          obtaining, maintenance, or disbursement of State or Federal
          grant, loan, or work assistance funds; or
            (V) such institution or an owner, director, or officer of
          such institution has unpaid financial liabilities involving
          the improper acquisition, expenditure, or refund of State or
          Federal financial assistance funds;

        except that, if a guaranty agency limits, suspends, or
        terminates the participation of an eligible institution, the
        Secretary shall apply that limitation, suspension, or
        termination to all locations of such institution, unless the
        Secretary finds, within 30 days of notification of the action
        by the guaranty agency, that the guaranty agency's action did
        not comply with the requirements of this section;
          (U) provides (i) for the eligibility of all lenders described
        in section 1085(d)(1) of this title under reasonable criteria,
        unless (I) that lender is eliminated as a lender under
        regulations for the emergency action, limitation, suspension,
        or termination of a lender under the Federal student loan
        insurance program or is eliminated as a lender pursuant to
        criteria issued under the student loan insurance program which
        are substantially the same as regulations with respect to such
        eligibility as a lender issued under the Federal student loan
        insurance program, or (II) there is a State constitutional
        prohibition affecting the eligibility of a lender, (ii)
        assurances that the guaranty agency will report to the
        Secretary concerning changes in such criteria, including any
        procedures in effect under such program to take emergency
        action, limit, suspend, or terminate lenders, and (iii) for (I)
        a compliance audit of each lender that originates or holds more
        than $5,000,000 in loans made under this subchapter and part C
        of subchapter I of chapter 34 of title 42 for any lender fiscal
        year (except that each lender described in section
        1085(d)(1)(A)(ii)(III) of this title shall annually submit the
        results of an audit required by this clause), at least once a
        year and covering the period since the most recent audit,
        conducted by a qualified, independent organization or person in
        accordance with standards established by the Comptroller
        General for the audit of governmental organizations, programs,
        and functions, and as prescribed in regulations of the
        Secretary, the results of which shall be submitted to the
        Secretary, or (II) with regard to a lender that is audited
        under chapter 75 of title 31, such audit shall be deemed to
        satisfy the requirements of subclause (I) for the period
        covered by such audit, except that the Secretary may waive the
        requirements of this clause (iii) if the lender submits to the
        Secretary the results of an audit conducted for other purposes
        that the Secretary determines provides the same information as
        the audits required by this clause;
          (V) provides authority for the guaranty agency to require a
        participation agreement between the guaranty agency and each
        eligible institution within the State in which it is
        designated, as a condition for guaranteeing loans made on
        behalf of students attending the institution;
          (W) provides assurances that the agency will implement all
        requirements of the Secretary for uniform claims and procedures
        pursuant to section 1082(l) of this title;
          (X) provides information to the Secretary in accordance with
        subsection (c)(9) of this section and maintains reserve funds
        determined by the Secretary to be sufficient in relation to
        such agency's guarantee obligations; and
          (Y) provides that - 
            (i) the lender shall determine the eligibility of a
          borrower for a deferment described in subparagraph (M)(i)
          based on receipt of - 
              (I) a request for deferment from the borrower and
            documentation of the borrower's eligibility for the
            deferment;
              (II) a newly completed loan application that documents
            the borrower's eligibility for a deferment; or
              (III) student status information received by the lender
            that the borrower is enrolled on at least a half-time
            basis; and

            (ii) the lender will notify the borrower of the granting of
          any deferment under clause (i)(II) or (III) of this
          subparagraph and of the option to continue paying on the
          loan.
      (2) Contents of insurance program agreement
        Such an agreement shall - 
          (A) provide that the holder of any such loan will be required
        to submit to the Secretary, at such time or times and in such
        manner as the Secretary may prescribe, statements containing
        such information as may be required by or pursuant to
        regulation for the purpose of enabling the Secretary to
        determine the amount of the payment which must be made with
        respect to that loan;
          (B) include such other provisions as may be necessary to
        protect the United States from the risk of unreasonable loss
        and promote the purpose of this part, including such provisions
        as may be necessary for the purpose of section 1087 of this
        title, and as are agreed to by the Secretary and the guaranty
        agency, as the case may be;
          (C) provide for making such reports, in such form and
        containing such information, including financial information,
        as the Secretary may reasonably require to carry out the
        Secretary's functions under this part and protect the financial
        interest of the United States, and for keeping such records and
        for affording such access thereto as the Secretary may find
        necessary to assure the correctness and verification of such
        reports;
          (D) provide for - 
            (i) conducting, except as provided in clause (ii),
          financial and compliance audits of the guaranty agency on at
          least an annual basis and covering the period since the most
          recent audit, conducted by a qualified, independent
          organization or person in accordance with standards
          established by the Comptroller General for the audit of
          governmental organizations, programs, and functions, and as
          prescribed in regulations of the Secretary, the results of
          which shall be submitted to the Secretary; or
            (ii) with regard to a guaranty program of a State which is
          audited under chapter 75 of title 31, deeming such audit to
          satisfy the requirements of clause (i) for the period of time
          covered by such audit;

          (E)(i) provide that any guaranty agency may transfer loans
        which are insured under this part to any other guaranty agency
        with the approval of the holder of the loan and such other
        guaranty agency; and
          (ii) provide that the lender (or the holder of the loan)
        shall, not later than 120 days after the borrower has left the
        eligible institution, notify the borrower of the date on which
        the repayment period begins; and
          (F) provide that, if the sale, other transfer, or assignment
        of a loan made under this part to another holder will result in
        a change in the identity of the party to whom the borrower must
        send subsequent payments or direct any communications
        concerning the loans, then - 
            (i) the transferor and the transferee will be required, not
          later than 45 days from the date the transferee acquires a
          legally enforceable right to receive payment from the
          borrower on such loan, either jointly or separately to
          provide a notice to the borrower of - 
              (I) the sale or other transfer;
              (II) the identity of the transferee;
              (III) the name and address of the party to whom
            subsequent payments or communications must be sent; and
              (IV) the telephone numbers of both the transferor and the
            transferee; and

            (ii) the transferee will be required to notify the guaranty
          agency, and, upon the request of an institution of higher
          education, the guaranty agency shall notify the last such
          institution the student attended prior to the beginning of
          the repayment period of any loan made under this part, of - 
              (I) any sale or other transfer of the loan; and
              (II) the address and telephone number by which contact
            may be made with the new holder concerning repayment of the
            loan,

        except that this subparagraph (F) shall only apply if the
        borrower is in the grace period described in section
        1077(a)(2)(B) of this title or subsection (b)(7) of this
        section or is in repayment status.
      (3) Restrictions on inducements, mailings, and advertising
        A guaranty agency shall not - 
          (A) offer, directly or indirectly, premiums, payments, or
        other inducements to any educational institution or its
        employees in order to secure applicants for loans under this
        part;
          (B) offer, directly or indirectly, any premium, incentive
        payment, or other inducement to any lender, or any agent,
        employee, or independent contractor of any lender or guaranty
        agency, in order to administer or market loans made under this
        part (other than a loan made under section 1078-8 of this title
        or a loan made as part of a guaranty agency's lender-of-last-
        resort program) for the purpose of securing the designation of
        that guaranty agency as the insurer of such loans;
          (C) conduct unsolicited mailings of student loan application
        forms to students enrolled in secondary school or a
        postsecondary institution, or to parents of such students,
        except that applications may be mailed to borrowers who have
        previously received loans guaranteed under this part by the
        guaranty agency; or
          (D) conduct fraudulent or misleading advertising concerning
        loan availability.

      It shall not be a violation of this paragraph for a guaranty
      agency to provide assistance to institutions of higher education
      comparable to the kinds of assistance provided to institutions of
      higher education by the Department of Education.
      (4) Special rule
        For the purpose of paragraph (1)(M)(i)(III) of this subsection,
      the Secretary shall approve any course of study at a foreign
      university that is accepted for the completion of a recognized
      international fellowship program by the administrator of such a
      program. Requests for deferment of repayment of loans under this
      part by students engaged in graduate or postgraduate fellowship-
      supported study (such as pursuant to a Fulbright grant) outside
      the United States shall be approved until completion of the
      period of the fellowship.
      (5) Guaranty agency information transfers
        (A) Until such time as the Secretary has implemented section
      1092b of this title and is able to provide to guaranty agencies
      the information required by such section, any guaranty agency may
      request information regarding loans made after January 1, 1987,
      to students who are residents of the State for which the agency
      is the designated guarantor, from any other guaranty agency
      insuring loans to such students.
        (B) Upon a request pursuant to subparagraph (A), a guaranty
      agency shall provide - 
          (i) the name and the social security number of the borrower;
        and
          (ii) the amount borrowed and the cumulative amount borrowed.

        (C) Any costs associated with fulfilling the request of a
      guaranty agency for information on students shall be paid by the
      guaranty agency requesting the information.
      (6) State guaranty agency information request of State licensing
        boards
        Each guaranty agency is authorized to enter into agreements
      with each appropriate State licensing board under which the State
      licensing board, upon request, will furnish the guaranty agency
      with the address of a student borrower in any case in which the
      location of the student borrower is unknown or unavailable to the
      guaranty agency.
      (7) Repayment period
        (A) In the case of a loan made under section 1077 of this title
      or this section, the repayment period shall exclude any period of
      authorized deferment or forbearance and shall begin the day after
      6 months after the date the student ceases to carry at least one-
      half the normal full-time academic workload (as determined by
      the institution).
        (B) In the case of a loan made under section 1078-8 of this
      title, the repayment period shall exclude any period of
      authorized deferment or forbearance, and shall begin as described
      in clause (i) or (ii) of subparagraph (A),(!6) but interest shall
      begin to accrue or be paid by the borrower on the day the loan is
      disbursed.

        (C) In the case of a loan made under section 1078-1,(!6) 1078-
      2, or 1078-3 of this title, the repayment period shall begin on
      the day the loan is disbursed, or, if the loan is disbursed in
      multiple installments, on the day of the last such disbursement,
      and shall exclude any period of authorized deferment or
      forbearance.
          (D) There shall be excluded from the 6-month period that
        begins on the date on which a student ceases to carry at least
        one-half the normal full-time academic workload as described in
        subparagraph (A)(i) (!6) any period not to exceed 3 years
        during which a borrower who is a member of a reserve component
        of the Armed Forces named in section 10101 of title 10 is
        called or ordered to active duty for a period of more than 30
        days (as defined in section 101(d)(2) of such title). Such
        period of exclusion shall include the period necessary to
        resume enrollment at the borrower's next available regular
        enrollment period.
      (8) Means of disbursement of loan proceeds
        Nothing in this subchapter and part C of subchapter I of
      chapter 34 of title 42 shall be interpreted to prohibit the
      disbursement of loan proceeds by means other than by check or to
      allow the Secretary to require checks to be made co-payable to
      the institution and the borrower.
      (9) Repayment plans
        (A) Design and selection
          In accordance with regulations promulgated by the Secretary,
        the lender shall offer a borrower of a loan made under this
        part the plans described in this subparagraph for repayment of
        such loan, including principal and interest thereon. No plan
        may require a borrower to repay a loan in less than 5 years
        unless the borrower, during the 6 months immediately preceding
        the start of the repayment period, specifically requests that
        repayment be made over of (!7) a shorter period. The borrower
        may choose from - 

            (i) a standard repayment plan, with a fixed annual
          repayment amount paid over a fixed period of time, not to
          exceed 10 years;
            (ii) a graduated repayment plan paid over a fixed period of
          time, not to exceed 10 years;
            (iii) an income-sensitive repayment plan, with income-
          sensitive repayment amounts paid over a fixed period of
          time, not to exceed 10 years, except that the borrower's
          scheduled payments shall not be less than the amount of
          interest due; and
            (iv) for new borrowers on or after October 7, 1998, who
          accumulate (after October 7, 1998) outstanding loans under
          this part totaling more than $30,000, an extended repayment
          plan, with a fixed annual or graduated repayment amount paid
          over an extended period of time, not to exceed 25 years,
          except that the borrower shall repay annually a minimum
          amount determined in accordance with paragraph (1)(L)(i).
        (B) Lender selection of option if borrower does not select
          If a borrower of a loan made under this part does not select
        a repayment plan described in subparagraph (A), the lender
        shall provide the borrower with a repayment plan described in
        subparagraph (A)(i).
    (c) Guaranty agreements for reimbursing losses
      (1) Authority to enter into agreements
        (A) The Secretary may enter into a guaranty agreement with any
      guaranty agency, whereby the Secretary shall undertake to
      reimburse it, under such terms and conditions as the Secretary
      may establish, with respect to losses (resulting from the default
      of the student borrower) on the unpaid balance of the principal
      and accrued interest of any insured loan. The guaranty agency
      shall be deemed to have a contractual right against the United
      States, during the life of such loan, to receive reimbursement
      according to the provisions of this subsection. Upon receipt of
      an accurate and complete request by a guaranty agency for
      reimbursement with respect to such losses, the Secretary shall
      pay promptly and without administrative delay. Except as provided
      in subparagraph (B) of this paragraph and in paragraph (7), the
      amount to be paid a guaranty agency as reimbursement under this
      subsection shall be equal to 95 percent of the amount expended by
      it in discharge of its insurance obligation incurred under its
      loan insurance program. A guaranty agency shall file a claim for
      reimbursement with respect to losses under this subsection within
      30 days after the guaranty agency discharges its insurance
      obligation on the loan.
        (B) Notwithstanding subparagraph (A) - 
          (i) if, for any fiscal year, the amount of such reimbursement
        payments by the Secretary under this subsection exceeds 5
        percent of the loans which are insured by such guaranty agency
        under such program and which were in repayment at the end of
        the preceding fiscal year, the amount to be paid as
        reimbursement under this subsection for such excess shall be
        equal to 85 percent of the amount of such excess; and
          (ii) if, for any fiscal year, the amount of such
        reimbursement payments exceeds 9 percent of such loans, the
        amount to be paid as reimbursement under this subsection for
        such excess shall be equal to 75 percent of the amount of such
        excess.

        (C) For the purpose of this subsection, the amount of loans of
      a guaranty agency which are in repayment shall be the original
      principal amount of loans made by a lender which are insured by
      such a guaranty agency reduced by - 
          (i) the amount the insurer has been required to pay to
        discharge its insurance obligations under this part;
          (ii) the original principal amount of loans insured by it
        which have been fully repaid; and
          (iii) the original principal amount insured on those loans
        for which payment of the first installment of principal has not
        become due pursuant to subsection (b)(1)(E) of this section or
        such first installment need not be paid pursuant to subsection
        (b)(1)(M) of this section.

        (D) Reimbursements of losses made by the Secretary on loans
      submitted for claim by an eligible lender, servicer, or guaranty
      agency designated for exceptional performance under section 1078-
      9 of this title shall not be subject to additional review by the
      Secretary or repurchase by the guaranty agency for any reason
      other than a determination by the Secretary that the eligible
      lender, servicer, or guaranty agency engaged in fraud or other
      purposeful misconduct in obtaining designation for exceptional
      performance.
        (E) Notwithstanding any other provisions of this section, in
      the case of a loan made pursuant to a lender-of-last-resort
      program, the Secretary shall apply the provisions of - 
          (i) the fourth sentence of subparagraph (A) by substituting
        "100 percent" for "95 percent";
          (ii) subparagraph (B)(i) by substituting "100 percent" for
        "85 percent"; and
          (iii) subparagraph (B)(ii) by substituting "100 percent" for
        "75 percent".

        (F) Notwithstanding any other provisions of this section, in
      the case of an outstanding loan transferred to a guaranty agency
      from another guaranty agency pursuant to a plan approved by the
      Secretary in response to the insolvency of the latter such
      guarantee agency, the Secretary shall apply the provision of - 
          (i) the fourth sentence of subparagraph (A) by substituting
        "100 percent" for "95 percent";
          (ii) subparagraph (B)(i) by substituting "90 percent" for "85
        percent"; and
          (iii) subparagraph (B)(ii) by substituting "80 percent" for
        "75 percent".

        (G)(i) Notwithstanding any other provisions of this section, in
      the case of exempt claims, the Secretary shall apply the
      provisions of - 
          (I) the fourth sentence of subparagraph (A) by substituting
        "100 percent" for "95 percent";
          (II) subparagraph (B)(i) by substituting "100 percent" for
        "85 percent"; and
          (III) subparagraph (B)(ii) by substituting "100 percent" for
        "75 percent".

        (ii) For purposes of clause (i) of this subparagraph, the term
      "exempt claims" means claims with respect to loans for which it
      is determined that the borrower (or the student on whose behalf a
      parent has borrowed), without the lender's or the institution's
      knowledge at the time the loan was made, provided false or
      erroneous information or took actions that caused the borrower or
      the student to be ineligible for all or a portion of the loan or
      for interest benefits thereon.
        (H) Notwithstanding any other provision of this section, the
      Secretary shall exclude a loan made pursuant to a lender-of-last-
      resort program when making reimbursement payment calculations
      under subparagraphs (B) and (C).
      (2) Contents of guaranty agreements
        The guaranty agreement - 
          (A) shall set forth such administrative and fiscal procedures
        as may be necessary to protect the United States from the risk
        of unreasonable loss thereunder, to ensure proper and efficient
        administration of the loan insurance program, and to assure
        that due diligence will be exercised in the collection of loans
        insured under the program, including (i) a requirement that
        each beneficiary of insurance on the loan submit proof that the
        institution was contacted and other reasonable attempts were
        made to locate the borrower (when the location of the borrower
        is unknown) and proof that contact was made with the borrower
        (when the location is known) and (ii) requirements establishing
        procedures to preclude consolidation lending from being an
        excessive proportion of guaranty agency recoveries on defaulted
        loans under this part;
          (B) shall provide for making such reports, in such form and
        containing such information, as the Secretary may reasonably
        require to carry out the Secretary's functions under this
        subsection, and for keeping such records and for affording such
        access thereto as the Secretary may find necessary to assure
        the correctness and verification of such reports;
          (C) shall set forth adequate assurances that, with respect to
        so much of any loan insured under the loan insurance program as
        may be guaranteed by the Secretary pursuant to this subsection,
        the undertaking of the Secretary under the guaranty agreement
        is acceptable in full satisfaction of State law or regulation
        requiring the maintenance of a reserve;
          (D) shall provide that if, after the Secretary has made
        payment under the guaranty agreement pursuant to paragraph (1)
        of this subsection with respect to any loan, any payments are
        made in discharge of the obligation incurred by the borrower
        with respect to such loan (including any payments of interest
        accruing on such loan after such payment by the Secretary),
        there shall be paid over to the Secretary (for deposit in the
        fund established by section 1081 of this title) such proportion
        of the amounts of such payments as is determined (in accordance
        with paragraph (6)(A)) to represent his equitable share
        thereof, but (i) shall provide for subrogation of the United
        States to the rights of any insurance beneficiary only to the
        extent required for the purpose of paragraph (8); and (ii)
        except as the Secretary may otherwise by or pursuant to
        regulation provide, amounts so paid by a borrower on such a
        loan shall be first applied in reduction of principal owing on
        such loan;
          (E) shall set forth adequate assurance that an amount equal
        to each payment made under paragraph (1) will be promptly
        deposited in or credited to the accounts maintained for the
        purpose of section 1072(c) of this title;
          (F) set forth adequate assurances that the guaranty agency
        will not engage in any pattern or practice which results in a
        denial of a borrower's access to loans under this part because
        of the borrower's race, sex, color, religion, national origin,
        age, handicapped status, income, attendance at a particular
        eligible institution within the area served by the guaranty
        agency, length of the borrower's educational program, or the
        borrower's academic year in school;
          (G) shall prohibit the Secretary from making any
        reimbursement under this subsection to a guaranty agency when a
        default claim is based on an inability to locate the borrower,
        unless the guaranty agency, at the time of filing for
        reimbursement, certifies to the Secretary that diligent
        attempts, including contact with the institution, have been
        made to locate the borrower through the use of reasonable skip-
        tracing techniques in accordance with regulations prescribed
        by the Secretary; and
          (H) set forth assurances that - 
            (i) upon the request of an eligible institution, the
          guaranty agency shall, subject to clauses (ii) and (iii),
          furnish to the institution information with respect to
          students (including the names and addresses of such students)
          who received loans made, insured, or guaranteed under this
          part for attendance at the eligible institution and for whom
          preclaims assistance activities have been requested under
          subsection (l) of this section;
            (ii) the guaranty agency shall not require the payment from
          the institution of any fee for such information; and
            (iii) the guaranty agency will require the institution to
          use such information only to assist the institution in
          reminding students of their obligation to repay student loans
          and shall prohibit the institution from disseminating the
          information for any other purpose.

          (I) may include such other provisions as may be necessary to
        promote the purpose of this part.
      (3) Forbearance
        A guaranty agreement under this subsection - 
          (A) shall contain provisions providing that - 
            (i) upon request, a lender shall grant a borrower
          forbearance, renewable at 12-month intervals, on terms agreed
          to by the parties to the loan with the approval of the
          insurer and documented in accordance with paragraph (10), and
          otherwise consistent with the regulations of the Secretary,
          if the borrower - 
              (I) is serving in a medical or dental internship or
            residency program, the successful completion of which is
            required to begin professional practice or service, or is
            serving in a medical or dental internship or residency
            program leading to a degree or certificate awarded by an
            institution of higher education, a hospital, or a health
            care facility that offers postgraduate training, provided
            that if the borrower qualifies for a deferment under
            section 1077(a)(2)(C)(vii) of this title or subsection
            (b)(1)(M)(vii) of this section as in effect prior to the
            enactment of the Higher Education Amendments of 1992, or
            section 1077(a)(2)(C) of this title or subsection (b)(1)(M)
            of this section as amended by such amendments, the borrower
            has exhausted his or her eligibility for such deferment;
              (II) has a debt burden under this subchapter and part C
            of subchapter I of chapter 34 of title 42 that equals or
            exceeds 20 percent of income;
              (III) is serving in a national service position for which
            the borrower receives a national service educational award
            under the National and Community Service Trust Act of 1993;
            or
              (IV) is eligible for interest payments to be made on such
            loan for service in the Armed Forces under section 2174 of
            title 10, and, pursuant to that eligibility, the interest
            is being paid on such loan under subsection (o) of this
            section;

            (ii) the length of the forbearance granted by the lender - 
              (I) under clause (i)(I) shall equal the length of time
            remaining in the borrower's medical or dental internship or
            residency program, if the borrower is not eligible to
            receive a deferment described in such clause, or such
            length of time remaining in the program after the borrower
            has exhausted the borrower's eligibility for such
            deferment;
              (II) under clause (i)(II) or (IV) shall not exceed 3
            years; or
              (III) under clause (i)(III) shall not exceed the period
            for which the borrower is serving in a position described
            in such clause; and

            (iii) no administrative or other fee may be charged in
          connection with the granting of a forbearance under clause
          (i), and no adverse information regarding a borrower may be
          reported to a credit bureau organization solely because of
          the granting of such forbearance;

          (B) may, to the extent provided in regulations of the
        Secretary, contain provisions that permit such forbearance for
        the benefit of the student borrower as may be agreed upon by
        the parties to an insured loan and approved by the insurer;
          (C) shall contain provisions that specify that - 
            (i) the form of forbearance granted by the lender pursuant
          to this paragraph, other than subparagraph (A)(i)(IV), shall
          be temporary cessation of payments, unless the borrower
          selects forbearance in the form of an extension of time for
          making payments, or smaller payments than were previously
          scheduled; and
            (ii) the form of forbearance granted by the lender pursuant
          to subparagraph (A)(i)(IV) shall be the temporary cessation
          of all payments on the loan other than payments of interest
          on the loan that are made under subsection (o) of this
          section; and

          (D) shall contain provisions that specify that - 
            (i) forbearance for a period not to exceed 60 days may be
          granted if the lender reasonably determines that such a
          suspension of collection activity is warranted following a
          borrower's request for deferment, forbearance, a change in
          repayment plan, or a request to consolidate loans, in order
          to collect or process appropriate supporting documentation
          related to the request, and
            (ii) during such period interest shall accrue but not be
          capitalized.

      Guaranty agencies shall not be precluded from permitting the
      parties to such a loan from entering into a forbearance agreement
      solely because the loan is in default. The Secretary shall permit
      lenders to exercise administrative forbearances that do not
      require the agreement of the borrower, under conditions
      authorized by the Secretary. Such forbearances shall include (i)
      forbearances for borrowers who are delinquent at the time of the
      granting of an authorized period of deferment under subsection
      (b)(1)(M) of this section or section 1077(a)(2)(C) of this title,
      and (ii) if the borrower is less than 60 days delinquent on such
      loans at the time of sale or transfer, forbearances for borrowers
      on loans which are sold or transferred.
      (4) Definitions
        For the purpose of this subsection, the terms "insurance
      beneficiary" and "default" have the meanings assigned to them by
      section 1085 of this title.
      (5) Applicability to existing loans
        In the case of any guaranty agreement with a guaranty agency,
      the Secretary may, in accordance with the terms of this
      subsection, undertake to guarantee loans described in paragraph
      (1) which are insured by such guaranty agency and are outstanding
      on the date of execution of the guaranty agreement, but only with
      respect to defaults occurring after the execution of such
      guaranty agreement or, if later, after its effective date.
      (6) Secretary's equitable share
        (A) For the purpose of paragraph (2)(D), the Secretary's
      equitable share of payments made by the borrower shall be that
      portion of the payments remaining after the guaranty agency with
      which the Secretary has an agreement under this subsection has
      deducted from such payments - 
          (i) a percentage amount equal to the complement of the
        reinsurance percentage in effect when payment under the
        guaranty agreement was made with respect to the loan; and
          (ii) an amount equal to 24 percent of such payments for use
        in accordance with section 1072b of this title, except that,
        beginning on October 1, 2003, this subparagraph shall be
        applied by substituting "23 percent" for "24 percent".

        (B) A guaranty agency shall - 
          (i) on or after October 1, 2006 - 
            (I) not charge the borrower collection costs in an amount
          in excess of 18.5 percent of the outstanding principal and
          interest of a defaulted loan that is paid off through
          consolidation by the borrower under this subchapter and part
          C of subchapter I of chapter 34 of title 42; and
            (II) remit to the Secretary a portion of the collection
          charge under subclause (I) equal to 8.5 percent of the
          outstanding principal and interest of such defaulted loan;
          and

          (ii) on and after October 1, 2009, remit to the Secretary the
        entire amount charged under clause (i)(I) with respect to each
        defaulted loan that is paid off with excess consolidation
        proceeds.

        (C) For purposes of subparagraph (B), the term "excess
      consolidation proceeds" means, with respect to any guaranty
      agency for any Federal fiscal year beginning on or after October
      1, 2009, the proceeds of consolidation of defaulted loans under
      this subchapter and part C of subchapter I of chapter 34 of title
      42 that exceed 45 percent of the agency's total collections on
      defaulted loans in such Federal fiscal year.
      (7) New programs eligible for 100 percent reinsurance
        (A) Notwithstanding paragraph (1)(C), the amount to be paid a
      guaranty agency for any fiscal year - 
          (i) which begins on or after October 1, 1977 and ends before
        October 1, 1991; and
          (ii) which is either the fiscal year in which such guaranty
        agency begins to actively carry on a student loan insurance
        program which is subject to a guaranty agreement under
        subsection (b) of this section, or is one of the 4 succeeding
        fiscal years,

      shall be 100 percent of the amount expended by such guaranty
      agency in discharge of its insurance obligation insured under
      such program.
        (B) Notwithstanding the provisions of paragraph (1)(C), the
      Secretary may pay a guaranty agency 100 percent of the amount
      expended by such agency in discharge of such agency's insurance
      obligation for any fiscal year which - 
          (i) begins on or after October 1, 1991; and
          (ii) is the fiscal year in which such guaranty agency begins
        to actively carry on a student loan insurance program which is
        subject to a guaranty agreement under subsection (b) of this
        section or is one of the 4 succeeding fiscal years.

        (C) The Secretary shall continuously monitor the operations of
      those guaranty agencies to which the provisions of subparagraph
      (A) or (B) are applicable and revoke the application of such
      subparagraph to any such guaranty agency which the Secretary
      determines has not exercised reasonable prudence in the
      administration of such program.
      (8) Assignment to protect Federal fiscal interest
        If the Secretary determines that the protection of the Federal
      fiscal interest so requires, a guaranty agency shall assign to
      the Secretary any loan of which it is the holder and for which
      the Secretary has made a payment pursuant to paragraph (1) of
      this subsection.
      (9) Guaranty agency reserve level
        (A) Each guaranty agency which has entered into an agreement
      with the Secretary pursuant to this subsection shall maintain in
      the agency's Federal Student Loan Reserve Fund established under
      section 1072a of this title a current minimum reserve level of at
      least 0.25 percent of the total attributable amount of all
      outstanding loans guaranteed by such agency. For purposes of this
      paragraph, such total attributable amount does not include
      amounts of outstanding loans transferred to the guaranty agency
      from another guaranty agency pursuant to a plan of the Secretary
      in response to the insolvency of the latter such guaranty agency.
        (B) The Secretary shall collect, on an annual basis,
      information from each guaranty agency having an agreement under
      this subsection to enable the Secretary to evaluate the financial
      solvency of each such agency. The information collected shall
      include the level of such agency's current reserves, cash
      disbursements and accounts receivable.
        (C) If (i) any guaranty agency falls below the required minimum
      reserve level in any 2 consecutive years, (ii) any guaranty
      agency's Federal reimbursement payments are reduced to 85 percent
      pursuant to paragraph (1)(B)(i), or (iii) the Secretary
      determines that the administrative or financial condition of a
      guaranty agency jeopardizes such agency's continued ability to
      perform its responsibilities under its guaranty agreement, then
      the Secretary shall require the guaranty agency to submit and
      implement a management plan acceptable to the Secretary within 45
      working days of any such event.
        (D)(i) If the Secretary is not seeking to terminate the
      guaranty agency's agreement under subparagraph (E), or assuming
      the guaranty agency's functions under subparagraph (F), a
      management plan described in subparagraph (C) shall include the
      means by which the guaranty agency will improve its financial and
      administrative condition to the required level within 18 months.
        (ii) If the Secretary is seeking to terminate the guaranty
      agency's agreement under subparagraph (E), or assuming the
      guaranty agency's functions under subparagraph (F), a management
      plan described in subparagraph (C) shall include the means by
      which the Secretary and the guaranty agency shall work together
      to ensure the orderly termination of the operations, and
      liquidation of the assets, of the guaranty agency.
        (E) The Secretary may terminate a guaranty agency's agreement
      in accordance with subparagraph (F) if - 
          (i) a guaranty agency required to submit a management plan
        under this paragraph fails to submit a plan that is acceptable
        to the Secretary;
          (ii) the Secretary determines that a guaranty agency has
        failed to improve substantially its administrative and
        financial condition;
          (iii) the Secretary determines that the guaranty agency is in
        danger of financial collapse;
          (iv) the Secretary determines that such action is necessary
        to protect the Federal fiscal interest; or
          (v) the Secretary determines that such action is necessary to
        ensure the continued availability of loans to student or parent
        borrowers.

        (F) If a guaranty agency's agreement under this subsection is
      terminated pursuant to subparagraph (E), then the Secretary shall
      assume responsibility for all functions of the guaranty agency
      under the loan insurance program of such agency. In performing
      such functions the Secretary is authorized to - 
          (i) permit the transfer of guarantees to another guaranty
        agency;
          (ii) revoke the reinsurance agreement of the guaranty agency
        at a specified date, so as to require the merger,
        consolidation, or termination of the guaranty agency;
          (iii) transfer guarantees to the Department of Education for
        the purpose of payment of such claims and process such claims
        using the claims standards of the guaranty agency, if such
        standards are determined by the Secretary to be in compliance
        with this chapter;
          (iv) design and implement a plan to restore the guaranty
        agency's viability;
          (v) provide the guaranty agency with additional advance funds
        in accordance with section 1072(c)(7) of this title, with such
        restrictions on the use of such funds as is determined
        appropriate by the Secretary, in order to - 
            (I) meet the immediate cash needs of the guaranty agency;
            (II) ensure the uninterrupted payment of claims; or
            (III) ensure that the guaranty agency will make loans as
          the lender-of-last-resort, in accordance with subsection (j)
          of this section;

          (vi) use all funds and assets of the guaranty agency to
        assist in the activities undertaken in accordance with this
        subparagraph and take appropriate action to require the return,
        to the guaranty agency or the Secretary, of any funds or assets
        provided by the guaranty agency, under contract or otherwise,
        to any person or organization; or
          (vii) take any other action the Secretary determines
        necessary to ensure the continued availability of loans made
        under this part to residents of the State or States in which
        the guaranty agency did business, the full honoring of all
        guarantees issued by the guaranty agency prior to the
        Secretary's assumption of the functions of such agency, and the
        proper servicing of loans guaranteed by the guaranty agency
        prior to the Secretary's assumption of the functions of such
        agency, and to avoid disruption of the student loan program.

        (G) Notwithstanding any other provision of Federal or State
      law, if the Secretary has terminated or is seeking to terminate a
      guaranty agency's agreement under subparagraph (E), or has
      assumed a guaranty agency's functions under subparagraph (F) - 
          (i) no State court may issue any order affecting the
        Secretary's actions with respect to such guaranty agency;
          (ii) 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; and
          (iii) no provision of State law shall apply to the actions of
        the Secretary in terminating the operations of a guaranty
        agency.

        (H) Notwithstanding any other provision of law, the Secretary's
      liability for any outstanding liabilities of a guaranty agency
      (other than outstanding student loan guarantees under this part),
      the functions of which the Secretary has assumed, shall not
      exceed the fair market value of the reserves of the guaranty
      agency, minus any necessary liquidation or other administrative
      costs.
        (I) The Secretary shall not take any action under subparagraph
      (E) or (F) without giving the guaranty agency notice and the
      opportunity for a hearing that, if commenced after September 24,
      1998, shall be on the record.
        (J) Notwithstanding any other provision of law, the information
      transmitted to the Secretary pursuant to this paragraph shall be
      confidential and exempt from disclosure under section 552 of
      title 5, relating to freedom of information, or any other Federal
      law.
        (K) The Secretary, within 3 months after the end of each fiscal
      year, shall submit to the House Committee on Education and the
      Workforce and the Senate Committee on Labor and Human Resources a
      report specifying the Secretary's assessment of the fiscal
      soundness of the guaranty agency system.
      (10) Documentation of forbearance agreements
        For the purposes of paragraph (3), the terms of forbearance
      agreed to by the parties shall be documented by confirming the
      agreement of the borrower by notice to the borrower from the
      lender, and by recording the terms in the borrower's file.
    (d) Usury laws inapplicable
      No provision of any law of the United States (other than this
    chapter) or of any State (other than a statute applicable
    principally to such State's student loan insurance program) which
    limits the rate or amount of interest payable on loans shall apply
    to a loan - 
        (1) which bears interest (exclusive of any premium for
      insurance) on the unpaid principal balance at a rate not in
      excess of the rate specified in this part; and
        (2) which is insured (i) by the United States under this part,
      or (ii) by a guaranty agency under a program covered by an
      agreement made pursuant to subsection (b) of this section.
    (e) Notice of availability of income-sensitive repayment option
      At the time of offering a borrower a loan under this part, and at
    the time of offering the borrower the option of repaying a loan in
    accordance with this section, the lender shall provide the borrower
    with a notice that informs the borrower, in a form prescribed by
    the Secretary by regulation - 
        (1) that all borrowers are eligible for income-sensitive
      repayment, including through loan consolidation under section
      1078-3 of this title;
        (2) the procedures by which the borrower may elect income-
      sensitive repayment; and
        (3) where and how the borrower may obtain additional
      information concerning income-sensitive repayment.
    (f) Payments of certain costs
      (1) (!8) Payment for certain activities

        (A) In general
          The Secretary - 
            (i) for loans originated during fiscal years beginning on
          or after October 1, 1998, and before October 1, 2003, and in
          accordance with the provisions of this paragraph, shall,
          except as provided in subparagraph (C), pay to each guaranty
          agency, a loan processing and issuance fee equal to 0.65
          percent of the total principal amount of the loans on which
          insurance was issued under this part during such fiscal year
          by such agency; and
            (ii) for loans originated during fiscal years beginning on
          or after October 1, 2003, and in accordance with the
          provisions of this paragraph, shall, except as provided in
          subparagraph (C), pay to each guaranty agency, a loan
          processing and issuance fee equal to 0.40 percent of the
          total principal amount of the loans on which insurance was
          issued under this part during such fiscal year by such
          agency.
        (B) Payment
          The payment required by subparagraph (A) shall be paid on a
        quarterly basis. The guaranty agency shall be deemed to have a
        contractual right against the United States to receive payments
        according to the provisions of this paragraph. Payments shall
        be made promptly and without administrative delay to any
        guaranty agency submitting an accurate and complete application
        under this subparagraph.
        (C) Requirement for payment
          No payment may be made under this paragraph for loans for
        which the disbursement checks have not been cashed or for which
        electronic funds transfers have not been completed.
    (g) Action on insurance program and guaranty agreements
      If a nonprofit private institution or organization - 
        (1) applies to enter into an agreement with the Secretary under
      subsections (b) and (c) of this section with respect to a student
      loan insurance program to be carried on in a State with which the
      Secretary does not have an agreement under subsection (b) of this
      section, and
        (2) as provided in the application, undertakes to meet the
      requirements of section 1072(c)(6)(B)(i), (ii), and (iii) of this
      title,

    the Secretary shall consider and act upon such application within
    180 days, and shall forthwith notify the Committee on Labor and
    Human Resources of the Senate and the Committee on Education and
    the Workforce of the House of Representatives of his actions.
    (h) Lending by guaranty agencies
      (1) Lending from Sallie Mae advances
        From sums advanced by the Association pursuant to section 1087-
      2(p) of this title, each guaranty agency or an eligible lender
      in a State described in section 1085(d)(1)(D) or (F) of this
      title is authorized to make loans directly to students otherwise
      unable to obtain loans under this part.
      (2) Amount of advances
        (A) Each guaranty agency or an eligible lender in a State
      described in section 1085(d)(1)(D) or (F) of this title which has
      an application approved under section 1087-2(p)(2) of this title
      may receive advances under section 1087-2(p) of this title for
      each fiscal year in an amount necessary to meet the demand for
      loans under this section. The amount such agency or lender is
      eligible to receive may not exceed 25 percent of the average of
      the loans guaranteed by that agency or lender for the 3 years
      preceding the fiscal year for which the determination is made.
      Whenever the determination required by the preceding sentence
      cannot be made because the agency or lender does not have 3 years
      previous experience, the amount such agency or lender is eligible
      to receive may not exceed 25 percent of the loans guaranteed
      under a program of a State of comparable size.
        (B) Each guaranty agency and each eligible lender in a State
      described in section 1085(d)(1)(D) or (F) of this title shall
      repay advances made under section 1087-2(p) of this title in
      accordance with agreements entered into between the Association
      and such agency or lender.
      (3) Loan term, conditions, and benefits
        Loans made pursuant to this subsection shall have the same
      terms, conditions, and benefits as all other loans made under
      this part.
    (i) Multiple disbursement of loans
      (1) Escrow accounts administered by escrow agent
        Any guaranty agency or eligible lender (hereafter in this
      subsection referred to as the "escrow agent") may enter into an
      agreement with any other eligible lender that is not an eligible
      institution or an agency or instrumentality of the State
      (hereafter in this subsection referred to as the "lender") for
      the purpose of authorizing disbursements of the proceeds of a
      loan to a student. Such agreement shall provide that the lender
      will pay the proceeds of such loans into an escrow account to be
      administered by the escrow agent in accordance with the
      provisions of paragraph (2) of this subsection. Such agreement
      may allow the lender to make payments into the escrow account in
      amounts that do not exceed the sum of the amounts required for
      disbursement of initial or subsequent installments to borrowers
      and to make such payments not more than 10 days prior to the date
      of the disbursement of such installment to such borrowers. Such
      agreement shall require the lender to notify promptly the
      eligible institution when funds are escrowed under this
      subsection for a student at such institution.
      (2) Authority of escrow agent
        Each escrow agent entering into an agreement under paragraph
      (1) of this subsection is authorized to - 
          (A) make the disbursements in accordance with the note
        evidencing the loan;
          (B) commingle the proceeds of all loans paid to the escrow
        agent pursuant to the escrow agreement entered into under such
        paragraph (1);
          (C) invest the proceeds of such loans in obligations of the
        Federal Government or obligations which are insured or
        guaranteed by the Federal Government;
          (D) retain interest or other earnings on such investment; and
          (E) return to the lender undisbursed funds when the student
        ceases to carry at an eligible institution at least one-half of
        the normal full-time academic workload as determined by the
        institution.
    (j) Lenders-of-last-resort
      (1) General requirement
        In each State, the guaranty agency or an eligible lender in the
      State described in section 1085(d)(1)(D) of this title shall make
      loans directly, or through an agreement with an eligible lender
      or lenders, to students eligible to receive interest benefits
      paid on their behalf under subsection (a) of this section who are
      otherwise unable to obtain loans under this part. Loans made
      under this subsection shall not exceed the amount of the need of
      the borrower, as determined under subsection (a)(2)(B) of this
      section, nor be less than $200. The guaranty agency shall
      consider the request of any eligible lender, as defined under
      section 1085(d)(1)(A) of this title, to serve as the lender-of-
      last-resort pursuant to this subsection.
      (2) Rules and operating procedures
        The guaranty agency shall develop rules and operating
      procedures for the lender-of-last-resort program designed to
      ensure that - 
          (A) the program establishes operating hours and methods of
        application designed to facilitate application by students and
        ensure a response within 60 days after the student's original
        complete application is filed under this subsection;
          (B) consistent with standards established by the Secretary,
        students applying for loans under this subsection shall not be
        subject to additional eligibility requirements or requests for
        additional information beyond what is required under this
        subchapter and part C of subchapter I of chapter 34 of title 42
        in order to receive a loan under this part from an eligible
        lender, nor be required to receive more than two rejections
        from eligible lenders in order to obtain a loan under this
        subsection;
          (C) information about the availability of loans under the
        program is made available to institutions of higher education
        in the State;
          (D) appropriate steps are taken to ensure that borrowers
        receiving loans under the program are appropriately counseled
        on their loan obligation; and
          (E) the guaranty agency notifies the Secretary when the
        guaranty agency believes or has reason to believe that the
        Secretary may need to exercise the Secretary's authority under
        section 1087-2(q) of this title.
      (3) Advances to guaranty agencies for lender-of-last-resort
        services
        (A) In order to ensure the availability of loan capital, the
      Secretary is authorized to provide a guaranty agency designated
      for a State with additional advance funds in accordance with
      subparagraph (C) and section 1072(c)(7) of this title, with such
      restrictions on the use of such funds as are determined
      appropriate by the Secretary, in order to ensure that the
      guaranty agency will make loans as the lender-of-last-resort.
      Such agency shall make such loans in accordance with this
      subsection and the requirements of the Secretary.
        (B) Notwithstanding any other provision in this part, a
      guaranty agency serving as a lender-of-last-resort under this
      paragraph shall be paid a fee, established by the Secretary, for
      making such loans in lieu of interest and special allowance
      subsidies, and shall be required to assign such loans to the
      Secretary on demand. Upon such assignment, the portion of the
      advance represented by the loans assigned shall be considered
      repaid by such guaranty agency.
        (C) The Secretary shall exercise the authority described in
      subparagraph (A) only if the Secretary determines that eligible
      borrowers are seeking and are unable to obtain loans under this
      part, and that the guaranty agency designated for that State has
      the capability to provide lender-of-last-resort loans in a timely
      manner, in accordance with the guaranty agency's obligations
      under paragraph (1), but cannot do so without advances provided
      by the Secretary under this paragraph. If the Secretary makes the
      determinations described in the preceding sentence and determines
      that it would be cost-effective to do so, the Secretary may
      provide advances under this paragraph to such guaranty agency. If
      the Secretary determines that such guaranty agency does not have
      such capability, or will not provide such loans in a timely
      fashion, the Secretary may provide such advances to enable
      another guaranty agency, that the Secretary determines to have
      such capability, to make lender-of-last-resort loans to eligible
      borrowers in that State who are experiencing loan access
      problems.
    (k) Information on defaults
      (1) Provision of information to eligible institutions
        Notwithstanding any other provision of law, in order to notify
      eligible institutions of former students who are in default of
      their continuing obligation to repay student loans, each guaranty
      agency shall, upon the request of an eligible institution,
      furnish information with respect to students who were enrolled at
      the eligible institution and who are in default on the repayment
      of any loan made, insured, or guaranteed under this part. The
      information authorized to be furnished under this subsection
      shall include the names and addresses of such students.
      (2) Public dissemination not authorized
        Nothing in paragraph (1) of this subsection shall be construed
      to authorize public dissemination of the information described in
      paragraph (1).
      (3) Borrower location information
        Any information provided by the institution relating to
      borrower location shall be used by the guaranty agency in
      conducting required skip-tracing activities.
    (l) Default aversion assistance
      (1) Assistance required
        Upon receipt of a complete request from a lender received not
      earlier than the 60th day of delinquency, a guaranty agency
      having an agreement with the Secretary under subsection (c) of
      this section shall engage in default aversion activities designed
      to prevent the default by a borrower on a loan covered by such
      agreement.
      (2) Reimbursement
        (A) In general
          A guaranty agency, in accordance with the provisions of this
        paragraph, may transfer from the Federal Student Loan Reserve
        Fund under section 1072a of this title to the Agency Operating
        Fund under section 1072b of this title a default aversion fee.
        Such fee shall be paid for any loan on which a claim for
        default has not been paid as a result of the loan being brought
        into current repayment status by the guaranty agency on or
        before the 300th day after the loan becomes 60 days delinquent.
        (B) Amount
          The default aversion fee shall be equal to 1 percent of the
        total unpaid principal and accrued interest on the loan at the
        time the request is submitted by the lender. A guaranty agency
        may transfer such fees earned under this subsection not more
        frequently than monthly. Such a fee shall not be paid more than
        once on any loan for which the guaranty agency averts the
        default unless - 
            (i) at least 18 months has elapsed between the date the
          borrower entered current repayment status and the date the
          lender filed a subsequent default aversion assistance
          request; and
            (ii) during the period between such dates, the borrower was
          not more than 30 days past due on any payment of principal
          and interest on the loan.
        (C) Definition
          For the purpose of earning the default aversion fee, the term
        "current repayment status" means that the borrower is not
        delinquent in the payment of any principal or interest on the
        loan.
    (m) Income contingent repayment
      (1) Authority of Secretary to require
        The Secretary may require borrowers who have defaulted on loans
      made under this part that are assigned to the Secretary under
      subsection (c)(8) of this section to repay those loans under an
      income contingent repayment plan, the terms and conditions of
      which shall be established by the Secretary and the same as, or
      similar to, an income contingent repayment plan established for
      purposes of part C of this subchapter.
      (2) Loans for which income contingent repayment may be required
        A loan made under this part may be required to be repaid under
      this subsection if the note or other evidence of the loan has
      been assigned to the Secretary pursuant to subsection (c)(8) of
      this section.
    (n) Blanket certificate of loan guaranty
      (1) In general
        Subject to paragraph (3), any guaranty agency that has entered
      into or enters into any insurance program agreement with the
      Secretary under this part may - 
          (A) offer eligible lenders participating in the agency's
        guaranty program a blanket certificate of loan guaranty that
        permits the lender to make loans without receiving prior
        approval from the guaranty agency of individual loans for
        eligible borrowers enrolled in eligible programs at eligible
        institutions; and
          (B) provide eligible lenders with the ability to transmit
        electronically data to the agency concerning loans the lender
        has elected to make under the agency's insurance program via
        standard reporting formats, with such reporting to occur at
        reasonable and standard intervals.
      (2) Limitations on blanket certificate of guaranty
        (A) An eligible lender may not make a loan to a borrower under
      this section after such lender receives a notification from the
      guaranty agency that the borrower is not an eligible borrower.
        (B) A guaranty agency may establish limitations or restrictions
      on the number or volume of loans issued by a lender under the
      blanket certificate of guaranty.
      (3) Participation level
        During fiscal years 1999 and 2000, the Secretary may permit, on
      a pilot basis, a limited number of guaranty agencies to offer
      blanket certificates of guaranty under this subsection. Beginning
      in fiscal year 2001, any guaranty agency that has an insurance
      program agreement with the Secretary may offer blanket
      certificates of guaranty under this subsection.
      (4) Report required
        The Secretary shall, at the conclusion of the pilot program
      under paragraph (3), provide a report to the Committee on
      Education and the Workforce of the House of Representatives and
      the Committee on Labor and Human Resources of the Senate on the
      impact of the blanket certificates of guaranty on program
      efficiency and integrity.
    (o) Armed Forces student loan interest payment program
      (1) Authority
        Using funds received by transfer to the Secretary under section
      2174 of title 10 for the payment of interest and any special
      allowance on a loan to a member of the Armed Forces that is made,
      insured, or guaranteed under this part, the Secretary shall pay
      the interest and special allowance on such loan as due for a
      period not in excess of 36 consecutive months. The Secretary may
      not pay interest or any special allowance on such a loan out of
      any funds other than funds that have been so transferred.
      (2) Forbearance
        During the period in which the Secretary is making payments on
      a loan under paragraph (1), the lender shall grant the borrower
      forbearance in accordance with the guaranty agreement under
      subsection (c)(3)(A)(i)(IV) of this section.
      (3) Special allowance defined
        For the purposes of this subsection, the term "special
      allowance",(!9) means a special allowance that is payable with
      respect to a loan under section 1087-1 of this title.


-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 428, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1367; amended Pub. L. 100-
    50, Sec. 10(a)-(c), (e)-(m), June 3, 1987, 101 Stat. 341-343; Pub.
    L. 100-203, title III, Secs. 3001(b), 3002(b), 3003, Dec. 22, 1987,
    101 Stat. 1330-38, 1330-39; Pub. L. 100-369, Secs. 5(b)(2), 7(c),
    11(a), July 18, 1988, 102 Stat. 836-838; Pub. L. 101-239, title II,
    Secs. 2002(a)(2), (b)(1), 2004(b)(1), (3), 2006(b), Dec. 19, 1989,
    103 Stat. 2111, 2116, 2118; Pub. L. 101-508, title III, Secs. 3002,
    3004(b), Nov. 5, 1990, 104 Stat. 1388-25, 1388-27; Pub. L. 102-26,
    Sec. 9, Apr. 9, 1991, 105 Stat. 128; Pub. L. 102-164, title VI,
    Secs. 601(b), 602(b), 604, 605(b)(2), Nov. 15, 1991, 105 Stat.
    1065, 1066, 1068; Pub. L. 102-325, title IV, Secs. 411(b)(2),
    416(a)-(e)(1), (f)-(p)(7), (q)-(t), July 23, 1992, 106 Stat. 510,
    516-525, 527-529; Pub. L. 103-66, title IV, Secs. 4041(a)(1),
    (2)(B), (b), 4043(a), 4044, 4045, 4102(c), 4107(a), (b), 4108(a),
    (b), 4110(a), 4112(a), 4201(a), Aug. 10, 1993, 107 Stat. 354, 355,
    358, 359, 367-370; Pub. L. 103-82, title I, Sec. 102(c)(1), Sept.
    21, 1993, 107 Stat. 823; Pub. L. 103-208, Sec. 2(c)(11)-(28), Dec.
    20, 1993, 107 Stat. 2462-2465; Pub. L. 103-382, title III, Sec.
    355(a), Oct. 20, 1994, 108 Stat. 3967; Pub. L. 105-33, title VI,
    Secs. 6101(b), 6104(2), Aug. 5, 1997, 111 Stat. 652; Pub. L. 105-
    244, title IV, Sec. 417(a)-(c)(1)(A), (2)-(k), Oct. 7, 1998, 112
    Stat. 1682-1690; Pub. L. 107-314, div. A, title VI, Sec. 651(b),
    Dec. 2, 2002, 116 Stat. 2579; Pub. L. 109-171, title VIII, Secs.
    8004(b)(2), 8005(b), 8007(a), 8008(a), 8009(b)(1), 8014(a)(1),
    (b)(1), (c)(1), (d), (e), (j)(1)-(3), Feb. 8, 2006, 120 Stat. 158,
    160, 162, 164, 168-171.)


-STATAMEND-
                     AMENDMENT OF SUBSECTION (B)(1)(A)                 
      Pub. L. 109-171, title VIII, Sec. 8005(b), (e), Feb. 8, 2006, 120
    Stat. 158, 159, provided that, effective July 1, 2007, subsection
    (b)(1)(A) of this section is amended:

      (1) in clause (i)(I), by substituting "$3,500" for "$2,625"; and
      (2) in clause (ii)(I), by substituting "$4,500" for "$3,500".

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National and Community Service Act of 1990, referred to in
    subsec. (a)(2)(C)(ii)(III), is Pub. L. 101-610, Nov. 16, 1990, 104
    Stat. 3127, as amended. Title I of the Act enacted subchapter I
    (Sec. 12511 et seq.) of chapter 129 of Title 42, The Public Health
    and Welfare, and amended sections 1070a-6 and 1087vv of this title.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 12501 of Title 42 and Tables.
      Section 1078-1 of this title, referred to in subsecs. (a)(2)(E)
    and (b)(1)(B), (Q), (7)(C), was repealed by Pub. L. 103-66, title
    IV, Sec. 4047(b)-(d), Aug. 10, 1993, 107 Stat. 364, eff. July 1,
    1994, except with respect to loans provided under that section as
    it existed prior to Aug. 10, 1993. Subsequently, a new section 1078-
    1, relating to voluntary flexible agreements with guaranty
    agencies, was enacted by Pub. L. 105-244, title IV, Sec. 418, Oct.
    7, 1998, 112 Stat. 1691.
      This chapter, referred to in subsecs. (a)(6), (c)(9)(F)(iii), and
    (d), 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.
      Subparagraph (A), referred to in subsec. (b)(7)(B), (D), was
    amended by Pub. L. 109-171, title VIII, Sec. 8009(b)(1), Feb. 8,
    2006, 120 Stat. 164, and, as so amended, no longer contains
    clauses.
      The Higher Education Amendments of 1992, referred to in subsec.
    (c)(3)(A)(i)(I), is Pub. L. 102-325, July 23, 1992, 106 Stat. 448,
    as amended. 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.
      The National and Community Service Trust Act of 1993, referred to
    in subsec. (c)(3)(A)(i)(III), is Pub. L. 103-82, Sept. 21, 1993,
    107 Stat. 785. For complete classification of this Act to the Code,
    see Short Title of 1993 Amendment note set out under section 12501
    of Title 42, The Public Health and Welfare, and Tables.

-COD-
                               CODIFICATION                           
      Amendments by section 2(c)(17), (26), (27) of Pub. L. 103-208
    (which were effective as if included in Pub. L. 102-325) were
    executed to this section as amended by Pub. L. 102-325, Pub. L. 103-
    66, and Pub. L. 103-82, to reflect the probable intent of
    Congress.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1078, Pub. L. 89-329, title IV, Sec. 428, Nov. 8,
    1965, 79 Stat. 1240; Pub. L. 90-460, Secs. 1(a)(2), 2(a)(2),
    (b)(1), (2), 3(b), Aug. 3, 1968, 82 Stat. 634-636; Pub. L. 90-575,
    title I, Secs. 111(a), (b)(1), 112(b), 113(b)(3), (4), 115(a)(1)-
    (3), (b), 116(b)(3), 117(a), (b), 120(a)(1), (b), (c)(1), Oct. 16,
    1968, 82 Stat. 1020-1027; Pub. L. 92-318, title I, Secs. 132(b),
    132A(b), 132C(a), (b), 132D(b)-(d), June 23, 1972, 86 Stat. 261-
    264; Pub. L. 93-269, Secs. 2-4, Apr. 18, 1974, 88 Stat. 87, 89;
    Pub. L. 94-328, Sec. 2(b), June 30, 1976, 90 Stat. 727; Pub. L. 94-
    482, title I, Sec. 127(a), Oct. 12, 1976, 90 Stat. 2108; S. Res.
    4, Feb. 4, 1977; Pub. L. 95-43, Sec. 1(a)(19)-(29), June 15, 1977,
    91 Stat. 214-216; Pub. L. 95-566, Sec. 5(a)(2), (b)(1), (3)-(5),
    Nov. 1, 1978, 92 Stat. 2403; S. Res. 30, Mar. 7, 1979; Pub. L. 96-
    49, Sec. 5(b), Aug. 13, 1979, 93 Stat. 352; Pub. L. 96-374, title
    IV, Secs. 411(b), 412(c), (d), (f), 413(b), (d), 414, 415(a)(3)-
    (5), (b)(2), 417, 423(a)(2), (b)-(d), title XIII, Sec. 1391(a)(1),
    (2), Oct. 3, 1980, 94 Stat. 1416-1420, 1422, 1432, 1503; Pub. L. 97-
    35, title V, Secs. 532(a), (b)(1), 535(c), (d), 536(b), 537(a)(1),
    (b)(2), (c), (d)(1), (e)(2), Aug. 13, 1981, 95 Stat. 451, 452, 455-
    457; Pub. L. 98-79, Sec. 10(b), Aug. 15, 1983, 97 Stat. 484; Pub.
    L. 99-272, title XVI, Secs. 16012(b), 16013(a), (c), (e)(2), (3),
    16014(a)(1), (b)(1), (2) formerly (1), (3) formerly (2), 16015(b),
    16016, 16018(a)(2), 16021, 16032(c), Apr. 7, 1986, 100 Stat. 340-
    343, 348, 349, 355, renumbered and amended, Pub. L. 99-320, Sec.
    2(a), (b), May 23, 1986, 100 Stat. 491, related to Federal interest
    subsidy payments, prior to the general revision of this part by
    Pub. L. 99-498.
      A prior section 1078a, Pub. L. 91-95, Sec. 2, Oct. 22, 1969, 83
    Stat. 141; Pub. L. 92-318, title I, Sec. 134(a), June 23, 1972, 86
    Stat. 270; Pub. L. 93-269, Sec. 5, Apr. 18, 1974, 88 Stat. 89; Pub.
    L. 94-328, Sec. 2(c), June 30, 1976, 90 Stat. 727; Pub. L. 94-482,
    title I, Sec. 127(c)(1), Oct. 12, 1976, 90 Stat. 2142, related to
    special allowances for insured student loans, prior to repeal by
    Pub. L. 94-482, title I, Sec. 127(c)(2), Oct. 12, 1976, 90 Stat.
    2142.

                                AMENDMENTS                            
      2006 - Subsec. (a)(3)(A)(v)(III). Pub. L. 109-171, Sec.
    8014(j)(1), added subcl. (III).
      Subsec. (a)(5). Pub. L. 109-171, Sec. 8004(b)(2), substituted
    "2012" and "2016" for "2004" and "2008", respectively.
      Subsec. (b)(1)(G). Pub. L. 109-171, Sec. 8014(a)(1), amended
    subpar. (G) generally. Prior to amendment, subpar. (G) read as
    follows: "insures 98 percent of the unpaid principal of loans
    insured under the program, except that such program shall insure
    100 percent of the unpaid principal of loans made with funds
    advanced pursuant to subsection (j) of this section or section 1087-
    2(q) of this title;".
      Subsec. (b)(1)(H). Pub. L. 109-171, Sec. 8014(b)(1), amended
    subpar. (H) generally. Prior to amendment, subpar. (H) read as
    follows: "provides for collection of a single insurance premium
    equal to not more than 1.0 percent of the principal amount of the
    loan, by deduction proportionately from each installment payment of
    the proceeds of the loan to the borrower, and insures that the
    proceeds of the premium will not be used for incentive payments to
    lenders;".
      Subsec. (b)(1)(M)(iii), (iv). Pub. L. 109-171, Sec. 8007(a),
    added cl. (iii) and redesignated former cl. (iii) as (iv).
      Subsec. (b)(1)(N)(ii), (iii). Pub. L. 109-171, Sec. 8008(a),
    added cls. (ii) and (iii) and struck out former cl. (ii), which
    read as follows: "in the case of a student who is studying outside
    the United States in a program of study abroad that is approved for
    credit by the home institution at which such student is enrolled or
    at an eligible foreign institution, are, at the request of the
    student, disbursed directly to the student by the means described
    in clause (i), unless such student requests that the check be
    endorsed, or the funds transfer authorized, pursuant to an
    authorized power-of-attorney;".
      Subsec. (b)(7)(A). Pub. L. 109-171, Sec. 8009(b)(1), substituted
    "shall begin the day after 6 months after the date the student
    ceases to carry at least one-half the normal full-time academic
    workload (as determined by the institution)." for "shall begin - 
        "(i) the day after 6 months after the date the student ceases
      to carry at least one-half the normal full-time academic workload
      (as determined by the institution); or
        "(ii) on an earlier date if the borrower requests and is
      granted a repayment schedule that provides for repayment to
      commence at an earlier date."
      Subsec. (c)(1)(A). Pub. L. 109-171, Sec. 8014(j)(2), substituted
    "30 days" for "45 days" in last sentence.
      Subsec. (c)(1)(G), (H). Pub. L. 109-171, Sec. 8014(c)(1), added
    subpar. (G) and redesignated former subpar. (G) as (H) and
    realigned margin.
      Subsec. (c)(2)(A). Pub. L. 109-171, Sec. 8014(d)(1), inserted
    "(i)" after "including" and added cl. (ii) before semicolon at end.
      Subsec. (c)(2)(D). Pub. L. 109-171, Sec. 8014(d)(2), substituted
    "paragraph (6)(A)" for "paragraph (6)".
      Subsec. (c)(3)(A)(i). Pub. L. 109-171, Sec. 8014(e)(1), in
    introductory provisions, struck out "in writing" after "on terms
    agreed to" and inserted "and documented in accordance with
    paragraph (10)" after "approval of the insurer".
      Subsec. (c)(6). Pub. L. 109-171, Sec. 8014(d)(3), designated
    existing provisions as subpar. (A), redesignated former subpars.
    (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A), and
    added subpars. (B) and (C).
      Subsec. (c)(10). Pub. L. 109-171, Sec. 8014(e)(2), added par.
    (10).
      Subsec. (i)(1). Pub. L. 109-171, Sec. 8014(j)(3), substituted "10
    days" for "21 days" in third sentence.
      2002 - Subsec. (c)(3)(A)(i)(IV). Pub. L. 107-314, Sec.
    651(b)(1)(A), added subcl. (IV).
      Subsec. (c)(3)(A)(ii)(II). Pub. L. 107-314, Sec. 651(b)(1)(B),
    inserted "or (IV)" after "(i)(II)".
      Subsec. (c)(3)(C). Pub. L. 107-314, Sec. 651(b)(1)(C), added
    subpar. (C) and struck out former subpar. (C) which read as
    follows: "shall contain provisions that specify that the form of
    forbearance granted by the lender for purposes of this paragraph
    shall be the temporary cessation of payments, unless the borrower
    selects forbearance in the form of an extension of time for making
    payments, or smaller payments than were previously scheduled; and".
      Subsec. (o). Pub. L. 107-314, Sec. 651(b)(2), added subsec. (o).
      1998 - Subsec. (a)(2)(A)(i). Pub. L. 105-244, Sec. 417(a)(1)(A),
    added subcls. (I) and (II) and struck out former subcls. (I) to
    (III) which read as follows:
      "(I) sets forth such student's estimated cost of attendance (as
    determined under section 1087ll of this title);
      "(II) sets forth such student's estimated financial assistance;
    and
      "(III) sets forth a schedule for disbursement of the proceeds of
    the loan in installments, consistent with the requirements of
    section 1078-7 of this title;".
      Subsec. (a)(2)(B). Pub. L. 105-244, Sec. 417(a)(1)(B), amended
    subpar. (B) generally. Prior to amendment, subpar. (B) read as
    follows: "For the purpose of clause (ii) of subparagraph (A), a
    student shall qualify for a portion of an interest payment under
    paragraph (1) if the eligible institution has provided the lender
    with a statement evidencing a determination of need for a loan (as
    determined under part E of this subchapter) and the amount of such
    need, subject to the provisions of subparagraph (D)."
      Subsec. (a)(2)(C). Pub. L. 105-244, Sec. 417(a)(1)(C), amended
    subpar. (C) generally. Prior to amendment, subpar. (C) read as
    follows: "For the purpose of paragraph (1) and this paragraph - 
        "(i) a student's estimated financial assistance means, for the
      period for which the loan is sought, the amount of assistance
      such student will receive under subpart 1 of part A of this
      subchapter (as determined in accordance with section 1091(b) of
      this title), subpart 3 of part A of this subchapter, and part C
      of subchapter I of chapter 34 of title 42 and part D of this
      subchapter, and any veterans' education benefits paid because of
      enrollment in a postsecondary education institution, including
      veterans' education benefits (as defined in section 1087vv(c) of
      this title), plus other scholarship, grant, or loan assistance;
      and
        "(ii) the determination of need and of the amount of a loan by
      an eligible institution under subparagraph (B) with respect to a
      student shall be calculated in accordance with part E of this
      subchapter."
      Subsec. (a)(2)(F). Pub. L. 105-244, Sec. 417(a)(1)(D), struck out
    subpar. (F) which read as follows: "Except as provided in
    subparagraph (D), an eligible institution may refuse to certify a
    statement which permits a student to receive a loan under this part
    or to certify a loan amount that is less than the student's
    determination of need (as determined under part E of this
    subchapter), if the reason for such action is documented and
    provided in written form to each student so affected."
      Subsec. (a)(5). Pub. L. 105-244, Sec. 417(a)(2), substituted
    "September 30, 2004" for "September 30, 2002" and "September 30,
    2008" for "September 30, 2006".
      Subsec. (b)(1)(A). Pub. L. 105-244, Sec. 417(b)(1)(A), inserted
    ", as defined in section 1088(a)(2) of this title," after "academic
    year" in introductory provisions.
      Subsec. (b)(1)(A)(i)(I). Pub. L. 105-244, Sec. 417(b)(1)(B)(i),
    substituted "length; and" for "length (as determined under section
    1088 of this title);".
      Subsec. (b)(1)(A)(i)(II), (III). Pub. L. 105-244, Sec.
    417(b)(1)(B)(ii), added subcl. (II) and struck out former subcls.
    (II) and (III) which read as follows:
      "(II) $1,750, if such student is enrolled in a program whose
    length is less than one academic year, but at least  2/3  of such
    an academic year; and
      "(III) $875, if such student is enrolled in a program whose
    length is less than  2/3 , but at least  1/3 , of such an academic
    year;".
      Subsec. (b)(1)(A)(vi). Pub. L. 105-244, Sec. 417(b)(1)(C)-(E),
    added cl. (vi).
      Subsec. (b)(1)(D)(ii). Pub. L. 105-244, Sec. 417(b)(2), amended
    cl. (ii) generally. Prior to amendment, cl. (ii) read as follows:
    "the repayment period of any insured loan may not exceed 10 years,
    and".
      Subsec. (b)(1)(E). Pub. L. 105-244, Sec. 417(b)(3), amended
    subpar. (E) generally. Prior to amendment, subpar. (E) read as
    follows: "subject to subparagraphs (D) and (L), and except as
    provided by subparagraph (M), provides that - 
        "(i) not more than 6 months prior to the date on which the
      borrower's first payment is due, the lender shall offer the
      borrower of a loan made, insured, or guaranteed under this
      section or section 1078-1 of this title, the option of repaying
      the loan in accordance with a graduated or income-sensitive
      repayment schedule established by the lender and in accordance
      with regulations of the Secretary; and
        "(ii) repayment of loans shall be in installments over a period
      of not less than 5 years (unless the student, during the 6 months
      immediately preceding the start of the repayment period,
      specifically requests that repayment be made over a shorter
      period) nor more than 10 years commencing at the beginning of the
      repayment period determined under paragraph (7) of this
      subsection;".
      Subsec. (b)(1)(G). Pub. L. 105-244, Sec. 417(b)(4), struck out
    "not less than" after "insures".
      Subsec. (b)(1)(L)(i). Pub. L. 105-244, Sec. 417(b)(5), inserted
    "except as otherwise provided by a repayment plan selected by the
    borrower under clause (ii) or (iii) of paragraph (9)(A)," before
    "during any" and ", notwithstanding any payment plan under
    paragraph (9)(A)" after "due and payable".
      Subsec. (b)(1)(M)(i)(I). Pub. L. 105-244, Sec. 417(b)(6)(A),
    inserted before semicolon ", except that no borrower,
    notwithstanding the provisions of the promissory note, shall be
    required to borrow an additional loan under this subchapter and
    part C of subchapter I of chapter 34 of title 42 in order to be
    eligible to receive a deferment under this clause".
      Subsec. (b)(1)(M)(ii). Pub. L. 105-244, Sec. 417(b)(6)(B),
    inserted before semicolon ", except that no borrower who provides
    evidence of eligibility for unemployment benefits shall be required
    to provide additional paperwork for a deferment under this clause".
      Subsec. (b)(1)(U)(i)(I), (ii). Pub. L. 105-244, Sec.
    417(b)(7)(A), substituted "emergency action," for "emergency
    action,,".
      Subsec. (b)(1)(U)(iii)(I). Pub. L. 105-244, Sec. 417(b)(7)(B),
    inserted "that originates or holds more than $5,000,000 in loans
    made under this subchapter and part C of subchapter I of chapter 34
    of title 42 for any lender fiscal year (except that each lender
    described in section 1085(d)(1)(A)(ii)(III) of this title shall
    annually submit the results of an audit required by this clause),"
    before "at least once a year".
      Subsec. (b)(1)(X). Pub. L. 105-244, Sec. 417(b)(8)(B)(i),
    substituted "subsection (c)(9)" for "subsection (c)(10)".
      Subsec. (b)(1)(Y). Pub. L. 105-244, Sec. 417(b)(8)(A), (B)(ii),
    (C), added subpar. (Y).
      Subsec. (b)(3). Pub. L. 105-244, Sec. 417(b)(9)(B), inserted
    concluding provisions.
      Subsec. (b)(3)(C). Pub. L. 105-244, Sec. 417(b)(9)(A), added
    subpar. (C) and struck out former subpar. (C) which read as
    follows: "conduct unsolicited mailings to students enrolled in
    secondary school of student loan application forms; or".
      Subsec. (b)(7)(D). Pub. L. 105-244, Sec. 417(b)(10), added
    subpar. (D).
      Subsec. (b)(9). Pub. L. 105-244, Sec. 417(b)(11), added par. (9).
      Subsec. (c)(1)(A). Pub. L. 105-244, Sec. 417(c)(1)(A)(i),
    substituted "95 percent" for "98 percent".
      Subsec. (c)(1)(B)(i). Pub. L. 105-244, Sec. 417(c)(1)(A)(ii),
    substituted "85 percent" for "88 percent".
      Subsec. (c)(1)(B)(ii). Pub. L. 105-244, Sec. 417(c)(1)(A)(iii),
    substituted "75 percent" for "78 percent".
      Subsec. (c)(1)(E)(i). Pub. L. 105-244, Sec. 417(c)(1)(A)(iv)(I),
    substituted "95 percent" for "98 percent".
      Subsec. (c)(1)(E)(ii). Pub. L. 105-244, Sec.
    417(c)(1)(A)(iv)(II), substituted "85 percent" for "88 percent".
      Subsec. (c)(1)(E)(iii). Pub. L. 105-244, Sec.
    417(c)(1)(A)(iv)(III), substituted "75 percent" for "78 percent".
      Subsec. (c)(1)(F)(i). Pub. L. 105-244, Sec. 417(c)(1)(A)(v)(I),
    substituted "95 percent" for "98 percent".
      Subsec. (c)(1)(F)(ii). Pub. L. 105-244, Sec. 417(c)(1)(A)(v)(II),
    substituted "85 percent" for "88 percent".
      Subsec. (c)(1)(F)(iii). Pub. L. 105-244, Sec.
    417(c)(1)(A)(v)(III), substituted "75 percent" for "78 percent".
      Subsec. (c)(2)(A). Pub. L. 105-244, Sec. 417(c)(2)(A),
    substituted "proof that the institution was contacted and other
    reasonable attempts were made" for "proof that reasonable attempts
    were made".
      Subsec. (c)(2)(G). Pub. L. 105-244, Sec. 417(c)(2)(B),
    substituted "certifies to the Secretary that diligent attempts,
    including contact with the institution, have been made" for
    "certifies to the Secretary that diligent attempts have been made".
      Subsec. (c)(2)(H)(ii). Pub. L. 105-244, Sec. 417(c)(3), amended
    cl. (ii) generally. Prior to amendment, cl. (ii) read as follows:
    "the guaranty agency may require the payment by the institution of
    a reasonable fee (as determined in accordance with regulations
    prescribed by the Secretary) for such information; and".
      Subsec. (c)(3)(A)(i). Pub. L. 105-244, Sec. 417(c)(4)(A), struck
    out "written" before "request" in introductory provisions.
      Subsec. (c)(3)(D). Pub. L. 105-244, Sec. 417(c)(4)(B)-(D), added
    subpar. (D).
      Subsec. (c)(6). Pub. L. 105-244, Sec. 417(c)(5), amended heading
    and text of par. (6) generally, revising and restating provisions
    relating to Secretary's equitable share.
      Subsec. (c)(8). Pub. L. 105-244, Sec. 417(c)(6), redesignated
    subpar. (A) as entire par. and struck out subpar. (B) which read as
    follows: "An orderly transition from the Federal Family Education
    Loan Program under this part to the Federal Direct Student Loan
    Program under part C of this subchapter shall be deemed to be in
    the Federal fiscal interest, and a guaranty agency shall promptly
    assign loans to the Secretary under this paragraph upon the
    Secretary's request."
      Subsec. (c)(9)(A). Pub. L. 105-244, Sec. 417(c)(7)(A),
    substituted "maintain in the agency's Federal Student Loan Reserve
    Fund established under section 1072a of this title a current
    minimum reserve level of at least 0.25 percent" for "maintain a
    current minimum reserve level of at least .5 percent".
      Subsec. (c)(9)(C). Pub. L. 105-244, Sec. 417(c)(7)(B),
    substituted "85 percent pursuant to paragraph (1)(B)(i)" for "80
    percent pursuant to subsection (c)(1)(B)(ii) of this section",
    struck out ", as appropriate," after "Secretary shall require", and
    substituted "45 working days" for "30 working days".
      Subsec. (c)(9)(E)(iv). Pub. L. 105-244, Sec. 417(c)(7)(C)(i),
    inserted "or" at end.
      Subsec. (c)(9)(E)(v). Pub. L. 105-244, Sec. 417(c)(7)(C)(ii),
    substituted a period for "; or" at end.
      Subsec. (c)(9)(E)(vi). Pub. L. 105-244, Sec. 417(c)(7)(C)(iii),
    struck out cl. (vi) which read as follows: "the Secretary
    determines that such action is necessary to ensure an orderly
    transition from the loan programs under this part to the direct
    student loan programs under part C of this subchapter."
      Subsec. (c)(9)(F)(vii). Pub. L. 105-244, Sec. 417(c)(7)(D),
    substituted "and to avoid disruption of the student loan program."
    for "to avoid disruption of the student loan program, and to ensure
    an orderly transition from the loan programs under this part to the
    direct student loan programs under part C of this subchapter."
      Subsec. (c)(9)(I). Pub. L. 105-244, Sec. 417(c)(7)(E), inserted
    "that, if commenced after September 24, 1998, shall be on the
    record" after "for a hearing".
      Subsec. (c)(9)(K). Pub. L. 105-244, Sec. 417(c)(7)(F),
    substituted "and the Workforce" for "and Labor" and struck out "and
    the progress of the transition from the loan programs under this
    part to the direct student loan programs under part C of this
    subchapter" after "guaranty agency system".
      Subsec. (e). Pub. L. 105-244, Sec. 417(d), amended heading and
    text of subsec. (e) generally. Prior to amendment, subsec. (e)
    related to payments for lender referral services.
      Subsec. (f). Pub. L. 105-244, Sec. 417(e), amended heading and
    text of subsec. (f) generally. Prior to amendment, subsec. (f)
    authorized the Secretary to make payments to guaranty agencies for
    fiscal years prior to fiscal year 1994 for certain administrative
    and other costs and provided for applications for such payments.
      Subsec. (g). Pub. L. 105-244, Sec. 417(f), substituted "and the
    Workforce" for "and Labor" in concluding provisions.
      Subsec. (j)(3). Pub. L. 105-244, Sec. 417(g)(1), struck out
    "during transition to direct lending" after "services" in heading.
      Subsec. (j)(3)(A). Pub. L. 105-244, Sec. 417(g)(2), 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 "loan capital" and inserted
    "designated for a State" after "a guaranty agency" and
    "subparagraph (C) and" after "funds in accordance with".
      Subsec. (j)(3)(C). Pub. L. 105-244, Sec. 417(g)(3), added subpar.
    (C).
      Subsec. (l). Pub. L. 105-244, Sec. 417(h), amended heading and
    text of subsec. (l) generally. Prior to amendment, text read as
    follows:
      "(1) Assistance required. - Upon receipt of a proper request from
    the lender, a guaranty agency having an agreement with the
    Secretary under subsection (c) of this section shall engage in
    preclaims assistance activities (as described in subsection
    (c)(6)(C)(i)(I) of this section) and supplemental preclaims
    assistance activities (as described in subsection (c)(6)(C) of this
    section) with respect to each loan covered by such agreement.
      "(2) Payments for supplemental preclaims assistance. - The
    Secretary shall make payments in accordance with the provisions of
    this paragraph to any guaranty agency that engages in supplemental
    preclaims assistance (as defined in subsection (c)(6)(C) of this
    section) on a loan guaranteed under this part. For each loan on
    which such assistance is performed and for which a default claim is
    not presented to the guaranty agency by the lender on or before the
    150th day after the loan becomes 120 days delinquent, such payment
    shall be equal to one percent of the total of the unpaid principal
    and the accrued unpaid interest of the loan."
      Subsec. (m)(1). Pub. L. 105-244, Sec. 417(i), substituted "may
    require borrowers" for "shall require at least 10 percent of the
    borrowers".
      Subsec. (n). Pub. L. 105-244, Sec. 417(k), added subsec. (n).
      Pub. L. 105-244, Sec. 417(j), struck out heading and text of
    subsec. (n) which related to State share of default costs.
      1997 - Subsec. (a)(5). Pub. L. 105-33, Sec. 6104(2), substituted
    "September 30, 2002," for "September 30, 1998," and "September 30,
    2006." for "September 30, 2002."
      Subsec. (c)(9)(A). Pub. L. 105-33, Sec. 6101(b), struck out "for
    the fiscal year of the agency that begins in 1993" after "loans
    guaranteed by such agency" and struck out at end "The minimum
    reserve level shall increase to - 
        "(i) .7 percent of such total attributable amount for the
      fiscal year of the agency that begins in 1994;
        "(ii) .9 percent of such total attributable amount for the
      fiscal year of the agency that begins in 1995; and
        "(iii) 1.1 percent of such total attributable amount for each
      fiscal year of the agency that begins on or after January 1,
      1996."
      1994 - Subsec. (c)(1)(G). Pub. L. 103-382 added subpar. (G).
      1993 - Subsec. (a)(2)(C)(i). Pub. L. 103-208, Sec. 2(c)(11),
    substituted "; and" for period at end.
      Subsec. (a)(2)(E). Pub. L. 103-208, Sec. 2(c)(12), inserted "or
    1078-8" after "1078-1".
      Subsec. (b)(1)(A)(ii), (iii). Pub. L. 103-208, Sec. 2(c)(13)(A),
    added cls. (ii) and (iii) and struck out former cls. (ii) and (iii)
    which read as follows:
      "(ii) in the case of a student who has successfully completed
    such first year but has not successfully completed the remainder of
    a program of undergraduate study - 
        "(I) $3,500, if such student is enrolled in a program whose
      length is at least one academic year in length (as determined
      under section 1088 of this title);
        "(II) $2,325, if such student is enrolled in a program whose
      length is less than one academic year, but at least  2/3  of such
      academic year; and
        "(III) $1,175, if such student is enrolled in a program whose
      length is less than  2/3 , but at least  1/3 , of such academic
      year;
      "(iii) in the case of a student at an eligible institution who
    has successfully completed such first and second year but has not
    successfully completed the remainder of a program of undergraduate
    study - 
        "(I) $5,500, if such student is enrolled in a program whose
      length is at least one academic year in length (as determined
      under section 1088 of this title);
        "(II) $3,675, if such student is enrolled in a program whose
      length is less than one academic year, but at least  2/3  of such
      an academic year; and
        "(III) $1,825, if such student is enrolled in a program whose
      length is less than  2/3 , but at least  1/3 , of such an
      academic year; and".
      Subsec. (b)(1)(A)(iv), (v). Pub. L. 103-208, Sec. 2(c)(13)(B),
    (C), added cl. (iv) and redesignated former cl. (iv) as (v).
      Subsec. (b)(1)(B). Pub. L. 103-208, Sec. 2(c)(14), substituted a
    semicolon for period at end of closing provisions.
      Subsec. (b)(1)(D). Pub. L. 103-66, Sec. 4043(a)(1), substituted
    "be subject to income contingent repayment in accordance with
    subsection (m) of this section;" for "be subject to repayment in
    accordance with the regulations required by subsection (m) of this
    section if the Secretary has published the finding required by
    paragraph (2) of such subsection;".
      Subsec. (b)(1)(G). Pub. L. 103-66, Sec. 4108(b), substituted "98
    percent" for "100 percent" and inserted before semicolon at end ",
    except that such program shall insure 100 percent of the unpaid
    principal of loans made with funds advanced pursuant to subsection
    (j) of this section or section 1087-2(q) of this title".
      Subsec. (b)(1)(H). Pub. L. 103-66, Sec. 4102(c), substituted "1.0
    percent" for "3 percent".
      Subsec. (b)(1)(N). Pub. L. 103-208, Sec. 2(c)(15), amended
    subpar. (N) generally. Prior to amendment, subpar. (N) read as
    follows: "provides that funds borrowed by a student are disbursed
    to the institution by check or other means that is payable to and
    requires the endorsement or other certification by such student,
    except nothing in this subchapter and part C of subchapter I of
    chapter 34 of title 42 shall be interpreted to allow the Secretary
    to require checks to be made co-payable to the institution and the
    borrower or to prohibit the disbursement of loan proceeds by means
    other than by check and except in the case of students who are
    studying outside the United States in a program of study abroad
    that is approved for credit by the home institution at which the
    student is enrolled, the funds shall, at the request of the
    borrower, be delivered directly to the student and the checks may
    be endorsed, and fund transfers authorized, pursuant to an
    authorized power-of-attorney;".
      Subsec. (b)(1)(U). Pub. L. 103-208, Sec. 2(c)(16), inserted a
    comma after "emergency action" in two places and substituted "this
    clause" for "this clause;" at end.
      Subsec. (b)(1)(V). Pub. L. 103-208, Sec. 2(c)(17), redesignated
    subpar. (X) as (V) and struck out former subpar. (V) which related
    to procedure and requirements for granting a forbearance while a
    borrower is enrolled in a medical or dental internship or residency
    program. See Codification note above.
      Subsec. (b)(1)(W). Pub. L. 103-208, Sec. 2(c)(17), redesignated
    subpar. (Y) as (W) and struck out former subpar. (W) which read as
    follows:
      "(i) provides that, upon written request, a lender shall grant a
    borrower forbearance on such terms as are otherwise consistent with
    the regulations of the Secretary, during periods in which the
    borrower is serving in a national service position, for which the
    borrower receives a national service educational award under the
    National and Community Service Trust Act of 1993;
      "(ii) provides that clauses (iii) and (iv) of subparagraph (V)
    shall also apply to a forbearance granted under this subparagraph;
    and
      "(iii) provides that interest shall continue to accrue on a loan
    for which a borrower receives forbearance under this subparagraph
    and shall be capitalized or paid by the borrower;". See
    Codification note above.
      Pub. L. 103-82, Sec. 102(c)(1)(A), added subpar. (W) and
    redesignated former subpar. (W) as (X).
      Subsec. (b)(1)(X). Pub. L. 103-208, Sec. 2(c)(17)(B),
    redesignated subpar. (Z) as (X). Former subpar. (X) redesignated
    (V). See Codification note above.
      Pub. L. 103-82, Sec. 102(c)(1)(A)(i), redesignated subpar. (W) as
    (X). Former subpar. (X) redesignated (Y).
      Subsec. (b)(1)(Y). Pub. L. 103-208, Sec. 2(c)(17)(B),
    redesignated subpar. (Y) as (W). See Codification note above.
      Pub. L. 103-82, Sec. 102(c)(1)(A)(i), redesignated subpar. (X) as
    (Y). Former subpar. (Y) redesignated (Z).
      Subsec. (b)(1)(Z). Pub. L. 103-208, Sec. 2(c)(17)(B),
    redesignated subpar. (Z) as (X). See Codification note above.
      Pub. L. 103-82, Sec. 102(c)(1)(A)(i), redesignated subpar. (Y) as
    (Z).
      Subsec. (b)(2)(F)(i). Pub. L. 103-208, Sec. 2(c)(18), substituted
    "either jointly or separately to provide a notice" for "each to
    provide a separate notice".
      Subsec. (b)(2)(F)(ii). Pub. L. 103-208, Sec. 2(c)(19)-(21),
    substituted "transferee" for "transferor" in introductory
    provisions, struck out "to another holder" after "the loan" in
    subcl. (I), and substituted "the new" for "such other" in subcl.
    (II).
      Subsec. (b)(7). Pub. L. 103-208, Sec. 2(c)(22), amended par. (7)
    generally. Prior to amendment, par. (7) read as follows:
      "(A) In the case of a loan made under section 1077 of this title
    or this section, the repayment period shall begin on the day
    immediately following the expiration of the 6-month period after
    the student ceases to carry at least one-half the normal full-time
    academic workload as determined by the institution, unless the
    borrower requests and is granted a repayment schedule that provides
    for repayment to commence at an earlier point in time, and shall
    exclude any period of authorized deferment or forbearance.
      "(B) In the case of a loan made under section 1078-1 or 1078-8 of
    this title, the repayment period shall begin on the day the loan is
    disbursed, or, if the loan is disbursed in multiple installments,
    on the day of the last such disbursement, and shall exclude any
    period of authorized deferment or forbearance.
      "(C) In the case of a loan made under section 1078-2 or 1078-3 of
    this title, the repayment period shall begin on the day the loan is
    disbursed, and shall exclude any period of authorized deferment or
    forbearance."
      Subsec. (b)(8). Pub. L. 103-208, Sec. 2(c)(23), added par. (8).
      Subsec. (c)(1)(A). Pub. L. 103-208, Sec. 2(c)(24), substituted
    last sentence for former last sentence which read as follows: "In
    no case shall a guaranty agency file a claim under this subsection
    for reimbursement with respect to losses prior to 270 days after
    the loan becomes delinquent with respect to any installment
    thereon, or later than 45 days after the guaranty agency discharges
    its insurance obligation on the loan."
      Pub. L. 103-66, Sec. 4108(a)(1), substituted "98 percent" for
    "100 percent" in fourth sentence.
      Subsec. (c)(1)(B), (E), (F). Pub. L. 103-66, Sec. 4108(a)(2)-(4),
    in subpar. (B), substituted "88 percent" for "90 percent" in cl.
    (i) and "78 percent" for "80 percent" in cl. (ii), and added
    subpars. (E) and (F).
      Subsec. (c)(2)(G). Pub. L. 103-208, Sec. 2(c)(25), substituted
    "certifies" for "demonstrates" before "to the Secretary".
      Subsec. (c)(3)(A). Pub. L. 103-208, Sec. 2(c)(26), added subpar.
    (A) and struck out former subpar. (A) which read as follows: "shall
    contain provisions providing for forbearance in accordance with
    subparagraphs (V) and (W) of subsection (b)(1) of this section for
    the benefit of the student borrower serving in a medical or dental
    internship or residency program;". See Codification note above.
      Pub. L. 103-82, Sec. 102(c)(1)(B), substituted "subparagraphs (V)
    and (W) of subsection (b)(1)" for "subsection (b)(1)(V)".
      Subsec. (c)(6)(A)(ii). Pub. L. 103-66, Sec. 4110(a), substituted
    "27 percent" for "30 percent".
      Subsec. (c)(8). Pub. L. 103-66, Sec. 4044, designated existing
    provisions as subpar. (A), struck out second and third sentences,
    and added subpar. (B). Prior to amendment, second and third
    sentences read as follows: "Prior to making such determination for
    any guaranty agency, the Secretary shall, in consultation with the
    guaranty agency, develop criteria to determine whether such agency
    has made adequate collections efforts. In determining whether a
    guaranty agency's collection efforts have met such criteria, the
    Secretary shall consider the agency's record of success in
    collecting on defaulted loans, the age of the loans, and the amount
    of recent payments received on the loans."
      Subsec. (c)(9). Pub. L. 103-66, Sec. 4107(a), redesignated par.
    (10) as (9) and struck out former par. (9) which required guaranty
    agencies to pay reinsurance fees to the Secretary.
      Subsec. (c)(10). Pub. L. 103-66, Sec. 4107(a)(2), redesignated
    par. (10) as (9).
      Subsec. (c)(10)(C). Pub. L. 103-66, Sec. 4045(1), inserted ", as
    appropriate," after "the Secretary shall require".
      Subsec. (c)(10)(D). Pub. L. 103-66, Sec. 4045(2), designated
    existing provisions as cl. (i), substituted "If the Secretary is
    not seeking to terminate the guaranty agency's agreement under
    subparagraph (E), or assuming the guaranty agency's functions under
    subparagraph (F), a" for "Each", and added cl. (ii).
      Subsec. (c)(10)(E)(iv) to (vi). Pub. L. 103-66, Sec. 4045(3),
    added cls. (iv) to (vi).
      Subsec. (c)(10)(F). Pub. L. 103-66, Sec. 4045(4)(A), substituted
    "If a guaranty" for "Except as provided in subparagraph (G), if a
    guaranty".
      Subsec. (c)(10)(F)(v). Pub. L. 103-66, Sec. 4045(4)(B), amended
    cl. (v) generally. Prior to amendment, cl. (v) read as follows:
    "provide the guaranty agency with additional advance funds in
    accordance with section 1072(c)(7) of this title in order to meet
    immediate cash needs of the guaranty agency and ensure the
    uninterrupted payment of claims, with such restrictions on the use
    of such funds, as determined appropriate by the Secretary; or".
      Subsec. (c)(10)(F)(vi), (vii). Pub. L. 103-66, Sec. 4045(4)(C),
    (D), in cl. (vi), substituted "to avoid" for "and to avoid" before
    "disruption of the student" and inserted before period at end ",
    and to ensure an orderly transition from the loan programs under
    this part to the direct student loan programs under part C of this
    subchapter", redesignated cl. (vi) as (vii), and added new cl.
    (vi).
      Subsec. (c)(10)(G). Pub. L. 103-66, Sec. 4045(5), (7), added
    subpar. (G) and struck out former subpar. (G) which read as
    follows: "The Secretary may not take any action under subparagraph
    (E) or (F) against any guaranty agency that is backed by the full
    faith and credit of the State where such guaranty agency is the
    primary guarantor."
      Subsec. (c)(10)(H) to (J). Pub. L. 103-66, Sec. 4045(6), (7),
    added subpar. (H) and redesignated former subpars. (H) and (I) as
    (I) and (J), respectively. Former subpar. (J) redesignated (K).
      Subsec. (c)(10)(K). Pub. L. 103-66, Sec. 4045(6), (8),
    redesignated subpar. (J) as (K) and substituted "system and the
    progress of the transition from the loan programs under this part
    to the direct student loan programs under part C of this
    subchapter." for "system, together with recommendations for
    legislative changes, if necessary, for the maintenance of a strong
    guaranty agency system."
      Subsec. (e)(1). Pub. L. 103-66, Sec. 4041(b)(1), amended heading,
    designated existing provisions as subpar. (A) and substituted "with
    which the Secretary has an agreement under subparagraph (B)" for
    "in any State", and added subpar. (B).
      Subsec. (e)(2). Pub. L. 103-66, Sec. 4041(b)(2)(A), in
    introductory provisions, substituted "with which the Secretary has
    an agreement under paragraph (1)(B)" for "in a State".
      Subsec. (e)(2)(A). Pub. L. 103-208, Sec. 2(c)(27), redesignated
    former cl. (i), subcl. (I) as (i) and former cl. (i), subcl. (II)
    as (ii) and struck out cl. (i) designation following subpar. (A)
    designation. See Codification note above.
      Pub. L. 103-66, Sec. 4041(b)(2)(B), amended subpar. (A)
    generally. Prior to amendment, subpar. (A) read as follows: "such
    student is either a resident of such State or is accepted for
    enrollment in or is attending an eligible institution in such
    State; and".
      Subsec. (e)(3). Pub. L. 103-66, Sec. 4041(b)(3), substituted
    "From funds available for costs of transition under section 1087h
    of this title, the" for "The".
      Subsec. (e)(5). Pub. L. 103-66, Sec. 4041(b)(4), struck out par.
    (5) which related to authorization of appropriations.
      Subsec. (f)(1)(A). Pub. L. 103-66, Sec. 4107(b)(1), substituted
    "For a fiscal year prior to fiscal year 1994, the Secretary" for
    "The Secretary".
      Subsec. (f)(1)(B). Pub. L. 103-66, Sec. 4107(b)(2), inserted
    "prior to fiscal year 1994" after "any fiscal year".
      Subsec. (j)(2). Pub. L. 103-208, Sec. 2(c)(28), substituted
    "lender-of-last-resort" for "lender of last resort" in introductory
    provisions.
      Subsec. (j)(2)(A) to (E). Pub. L. 103-66, Sec. 4041(a)(2)(B), in
    subpar. (A) inserted before semicolon "and ensure a response within
    60 days after the student's original complete application is filed
    under this subsection", added subpar. (B), and redesignated former
    subpars. (B) to (D) as (C) to (E), respectively.
      Subsec. (j)(3). Pub. L. 103-66, Sec. 4041(a)(1), added par. (3)
    consisting of subpars. (A) and (B), and struck out former par. (3)
    relating to limitation on lender-of-last-resort program, consisting
    of subpars. (A) to (C).
      Subsec. (l)(2). Pub. L. 103-66, Sec. 4112(a), inserted second
    sentence and struck out former second sentence which read as
    follows: "Such payments shall be equal to $50.00 for each loan on
    which such assistance is performed and for which a default claim is
    not presented to the guaranty agency by the lender on or before the
    150th day after the loan becomes 120 days delinquent."
      Subsec. (m). Pub. L. 103-66, Sec. 4043(a)(2), amended par. (1)
    generally, added par. (2), and struck out former pars. (2) to (4).
    Prior to amendment, former pars. (1) to (4) related to
    establishment of terms and conditions, collection mechanism, loans
    for which income contingent repayment is required, and additional
    authority, respectively.
      Subsec. (n). Pub. L. 103-66, Sec. 4201(a), added subsec. (n).
      1992 - Subsec. (a)(2)(C). Pub. L. 102-325, Sec. 416(a)(1),
    amended cls. (i) and (ii) generally. Prior to amendment, cls. (i)
    and (ii) read as follows:
      "(i) a student's estimated financial assistance means, for the
    period for which the loan is sought, the amount of assistance such
    student will receive under subpart 1 of part A of this subchapter
    (as determined in accordance with section 1091(b) of this title),
    subpart 2 of part A of this subchapter, part D of this subchapter,
    and part C of subchapter I of chapter 34 of title 42, and any
    amount paid the student under chapters 32, 34, and 35 of title 38,
    plus other scholarship, grant, or loan assistance; and
      "(ii) the determination of need and of the amount of a loan by an
    eligible institution under subparagraph (B) with respect to a
    student shall be calculated by subtracting from the estimated cost
    of attendance at the eligible institution the total of the expected
    family contribution with respect to such student plus any estimated
    financial assistance reasonably available to such student."
      Subsec. (a)(3)(A)(v). Pub. L. 102-325, Sec. 416(a)(2), added cl.
    (v).
      Subsec. (a)(5). Pub. L. 102-325, Sec. 411(b)(2), substituted
    "September 30, 1998" for "September 30, 1992" and "September 30,
    2002" for "September 30, 1997".
      Subsec. (a)(7). Pub. L. 102-325, Sec. 416(a)(3), added par. (7).
      Subsec. (b)(1)(A). Pub. L. 102-325, Sec. 416(b)(1)(A), inserted
    "or in a program of study abroad approved for credit by the
    eligible home institution at which such student is enrolled" in
    introductory provisions.
      Subsec. (b)(1)(A)(i) to (iv). Pub. L. 102-325, Sec. 416(b)(1)(B),
    added cls. (i) to (iv) and struck out former cls. (i) to (iii)
    which read as follows:
      "(i) $2,625, in the case of a student who has not successfully
    completed the first and second year of a program of undergraduate
    education;
      "(ii) $4,000, in the case of a student who has successfully
    completed such first and second year but who has not successfully
    completed the remainder of a program of undergraduate education;
    and
      "(iii) $7,500, in the case of a graduate or professional student
    (as defined in regulations of the Secretary);".
      Subsec. (b)(1)(B). Pub. L. 102-325, Sec. 416(b)(2), which
    directed the amendment of subpar. (B) by striking clauses (i) and
    (ii) and inserting language which contained new cls. (i) and (ii)
    followed by concluding provisions, was executed by substituting the
    new cls. (i) and (ii) and concluding provisions for former cls. (i)
    and (ii) and former concluding provisions to reflect the probable
    intent of Congress. Prior to amendment, cls. (i) and (ii) and
    concluding provisions read as follows:
        "(i) $17,250, in the case of any student who has not
      successfully completed a program of undergraduate education,
      excluding loans made under section 1078-1 or 1078-2 of this
      title; and
        "(ii) $54,750, in the case of any graduate or professional
      student (as defined by regulations of the Secretary and including
      any loans which are insured by the Secretary under this part, or
      by a guaranty agency, made to such student before the student
      became a graduate or professional student), excluding loans made
      under section 1078-1 or 1078-2 of this title;
    except that the Secretary may increase the limit applicable to
    students who are pursuing programs which the Secretary determines
    are exceptionally expensive;".
      Subsec. (b)(1)(D), (E). Pub. L. 102-325, Sec. 416(c)(1), amended
    subpars. (D) and (E) generally. Prior to amendment, subpars. (D)
    and (E) read as follows:
      "(D) provides that (i) the student borrower shall be entitled to
    accelerate without penalty the whole or any part of an insured
    loan, (ii) except as provided in subparagraph (M) of this
    paragraph, the repayment period of any insured loan may not exceed
    10 years, and (iii) the note or other written evidence of any loan,
    may contain such reasonable provisions relating to repayment in the
    event of default by the borrower as may be authorized by
    regulations of the Secretary in effect at the time such note or
    written evidence was executed;
      "(E) subject to subparagraphs (D) and (L) of this paragraph and
    except as provided by subparagraph (M) of this paragraph, provides
    that repayment of loans shall be in installments over a period of
    not less than 5 years (unless the student, during the 6 months
    preceding the start of the repayment period, specifically requests
    that repayment be made over a shorter period) nor more than 10
    years beginning 6 months after the month in which the student
    ceases to carry at least one-half the normal full-time academic
    workload as determined by the institution;".
      Subsec. (b)(1)(L)(i). Pub. L. 102-325, Sec. 416(d), substituted
    "(but in no instance less than the amount of interest due and
    payable)" for ", except that, in the case of a husband and wife,
    both of whom have such loans outstanding, the total of the combined
    payments for such a couple during any year shall not be less than
    $600 or the balance of all such loans, whichever is less".
      Subsec. (b)(1)(M). Pub. L. 102-325, Sec. 416(e)(1), amended
    subpar. (M) generally, revising and restating as cls. (i) to (iii)
    provisions formerly contained in cls. (i) to (xi).
      Subsec. (b)(1)(N). Pub. L. 102-325, Sec. 416(f), substituted
    "except in the case of students who are studying outside the United
    States in a program of study abroad that is approved for credit by
    the home institution at which the student is enrolled, the funds
    shall, at the request of the borrower, be delivered directly to the
    student and the checks may be endorsed, and fund transfers
    authorized, pursuant to an authorized power-of-attorney;" for
    "except in the case of attendance at an institution outside the
    United States, the funds shall be delivered directly to the
    student;".
      Subsec. (b)(1)(T). Pub. L. 102-325, Sec. 416(g), amended subpar.
    (T) generally. Prior to amendment, subpar. (T) read as follows:
    "provides no restrictions with respect to eligible institutions
    (other than nonresidential correspondence schools) which are more
    onerous than eligibility requirements for institutions under the
    Federal student loan insurance program as in effect on January 1,
    1985, unless - 
        "(i) that institution is ineligible under regulations for the
      emergency action, limitation, suspension, or termination of
      eligible institutions under the Federal student loan insurance
      program or is ineligible pursuant to criteria issued under the
      student loan insurance program which are substantially the same
      as regulations with respect to such eligibility issued under the
      Federal student loan insurance program; or
        "(ii) there is a State constitutional prohibition affecting the
      eligibility of such an institution;".
      Subsec. (b)(1)(U)(iii). Pub. L. 102-325, Sec. 416(h), added cl.
    (iii).
      Subsec. (b)(1)(V). Pub. L. 102-325, Sec. 416(i)(4), (5), added
    cls. (ii) and (iii) and redesignated former cl. (ii) as (iv).
      Pub. L. 102-325, Sec. 416(i)(3), which directed the amendment of
    cl. (ii) by substituting a semicolon for a period at end, could not
    be executed because the period had been stricken by Pub. L. 102-
    164, Sec. 601(b)(2).
      Pub. L. 102-325, Sec. 416(i)(1), (2), struck out "and" at end of
    cl. (i) and inserted "or (ii)" after "clause (i)" in two places in
    cl. (ii).
      Subsec. (b)(1)(W) to (Y). Pub. L. 102-325, Sec. 416(j), added
    subpars. (W) to (Y) and struck out former subpars. (W) and (X)
    which related to credit reports, credit worthy cosigners, and
    authorizations for entry of judgments against borrowers in the
    event of default.
      Subsec. (b)(2)(C). Pub. L. 102-325, Sec. 416(k)(1), substituted
    ", including financial information, as the Secretary may reasonably
    require to carry out the Secretary's functions under this part and
    protect the financial interest of the United States," for ", as the
    Secretary may reasonably require to carry out the Secretary's
    functions under this part,".
      Subsec. (b)(2)(D)(i). Pub. L. 102-325, Sec. 416(k)(2)(A),
    substituted "on at least an annual basis" for "at least once every
    2 years".
      Subsec. (b)(2)(E). Pub. L. 102-325, Sec. 416(k)(3), designated
    existing provisions as cl. (i) and added cl. (ii).
      Subsec. (b)(2)(F). Pub. L. 102-325, Sec. 416(k)(2)(B), (4), added
    subpar. (F).
      Subsec. (b)(3)(B) to (D). Pub. L. 102-325, Sec. 416(l), added
    subpar. (B) and redesignated former subpars. (B) and (C) as (C) and
    (D), respectively.
      Subsec. (b)(4). Pub. L. 102-325, Sec. 416(n), inserted at end
    sentence relating to requests for deferment of repayment by
    students engaged in fellowship-supported study outside the United
    States.
      Pub. L. 102-325, Sec. 416(m), redesignated par. (5) as (4) and
    struck out former par. (4) which related to targeted teacher
    deferment rule.
      Subsec. (b)(5). Pub. L. 102-325, Sec. 416(m)(2), redesignated
    par. (6) as (5). Former par. (5) redesignated (4).
      Subsec. (b)(6). Pub. L. 102-325, Sec. 416(o), added par. (6).
    Former par. (6) redesignated (5).
      Subsec. (b)(7). Pub. L. 102-325, Sec. 416(c)(2), added par. (7).
      Subsec. (c)(1)(A). Pub. L. 102-325, Sec. 416(p)(1), substituted
    ", or later than 45 days after the guaranty agency discharges its
    insurance obligation on the loan." for period at end.
      Subsec. (c)(1)(D). Pub. L. 102-325, Sec. 416(p)(2), added subpar.
    (D).
      Subsec. (c)(2). Pub. L. 102-325, Sec. 416(p)(3), struck out "and"
    at end of subpar. (F), added subpars. (G) and (H), and redesignated
    former subpar. (G) as (I).
      Subsec. (c)(3). Pub. L. 102-325, Sec. 416(p)(4), added subpar.
    (C) and concluding provisions and struck out former last sentence
    which read as follows: "Such regulations shall not preclude
    guaranty agencies from permitting the parties to such a loan from
    entering into a forbearance agreement solely because the loan is in
    default."
      Subsec. (c)(7)(A). Pub. L. 102-325, Sec. 416(p)(5)(A),
    substituted "(1)(C)" for "(1)(B)" in introductory provisions and
    inserted "and ends before October 1, 1991" in cl. (i).
      Subsec. (c)(7)(B). Pub. L. 102-325, Sec. 416(p)(5)(D), added
    subpar. (B). Former subpar. (B) redesignated (C).
      Subsec. (c)(7)(C). Pub. L. 102-325, Sec. 416(p)(5)(B), (C),
    redesignated subpar. (B) as (C) and inserted "or (B)" after "(A)".
      Subsec. (c)(8). Pub. L. 102-325, Sec. 416(p)(6), inserted
    provisions at end directing Secretary to develop criteria to
    determine whether agency has made adequate collection efforts and
    directing Secretary to consider certain factors in making
    determination.
      Subsec. (c)(10). Pub. L. 102-325, Sec. 416(p)(7), added par.
    (10).
      Subsec. (f)(1)(A)(i). Pub. L. 102-325, Sec. 416(q)(1),
    substituted "eligible lender" for "commercial lender".
      Subsec. (f)(1)(C). Pub. L. 102-325, Sec. 416(q)(2), added subpar.
    (C).
      Subsec. (j). Pub. L. 102-325, Sec. 416(r), designated existing
    provisions as par. (1), inserted par. heading, and added pars. (2)
    and (3).
      Subsec. (k)(3). Pub. L. 102-325, Sec. 416(s), added par. (3).
      Subsec. (m). Pub. L. 102-325, Sec. 416(t), added subsec. (m).
      1991 - Subsec. (a)(2)(A)(iii). Pub. L. 102-164, Sec. 602(b)(1),
    added cl. (iii).
      Subsec. (a)(2)(F). Pub. L. 102-26 amended subpar. (F) generally.
    Prior to amendment, subpar. (F) read as follows: "Except as
    provided in subparagraph (D), an eligible institution may not, in
    carrying out the provisions of subparagraphs (A) and (B) of this
    paragraph, refuse to provide to any eligible lender which has an
    agreement under subsection (b) of this section with any guaranty
    agency, a statement which permits a student to receive any loan
    under this part, except that, in individual cases where the
    institution determines that the portion of the student's expenses
    to be covered by the loan can be met more appropriately, either by
    the institution or directly by the student, from other sources, the
    institution may refuse to provide such statement or may reduce the
    determination of need contained in such statement."
      Subsec. (b)(1)(W). Pub. L. 102-164, Sec. 601(b), added subpar.
    (W).
      Subsec. (b)(1)(X). Pub. L. 102-164, Sec. 604, added subpar. (X).
      Subsec. (c)(6)(D). Pub. L. 102-164, Sec. 605(b)(2), struck out
    subpar. (D) which read as follows: "In the case of a State which
    enacts and enforces a garnishment law that complies with the
    requirements of section 1078-5 of this title, subparagraph (A)(ii)
    shall be applied by substituting '35 percent' for '30 percent'."
      1990 - Subsec. (a)(2)(F). Pub. L. 101-508, Sec. 3004(b), inserted
    before period at end ", except that, in individual cases where the
    institution determines that the portion of the student's expenses
    to be covered by the loan can be met more appropriately, either by
    the institution or directly by the student, from other sources, the
    institution may refuse to provide such statement or may reduce the
    determination of need contained in such statement".
      Subsec. (c)(1)(A). Pub. L. 101-508, Sec. 3002(a)(1), struck out
    before period at end of first sentence ", including the
    administrative costs of supplemental preclaim assistance for
    default prevention as defined in paragraph (6)(C)".
      Subsec. (c)(6)(C). Pub. L. 101-508, Sec. 3002(a)(2)-(5), in
    introductory provisions of cl. (i), substituted "subsection (l) of
    this section" for "this paragraph", in cl. (i)(I), substituted
    "generally comparable in intensiveness to the level of preclaims
    assistance performed, prior to the 120th day of delinquency, by the
    guaranty agency as of October 16, 1990" for "required or permitted
    under paragraph (2)(A) of this subsection and subsection (f) of
    this section", in cl. (ii), substituted "payment under subsection
    (l) of this section" for "reimbursement" and "described in division
    (i)(I) of this subparagraph" for "which the guaranty agency is
    required or permitted to provide pursuant to paragraph (2)(A) of
    this subsection and subsection (f) of this section", and in cl.
    (iv), struck out first sentence which read as follows: "The costs
    for each delinquent loan associated with carrying out this
    subparagraph may not exceed 2 percent of the outstanding principal
    balance of each such loan subject to the supplemental preclaims
    assistance authorized by this subparagraph or $100, whichever is
    less."
      Subsec. (l). Pub. L. 101-508, Sec. 3002(b), added subsec. (l).
      1989 - Subsec. (a)(2)(A)(i)(III). Pub. L. 101-239, Sec.
    2004(b)(1), added subcl. (III).
      Subsec. (b)(1)(M)(i). Pub. L. 101-239, Sec. 2002(a)(2), inserted
    before semicolon at end ", except that no borrower shall be
    eligible for a deferment under this clause, or loan made under this
    part (other than a loan made under section 1078-2 or 1078-3 of this
    title), while serving in a medical internship or residency
    program".
      Subsec. (b)(1)(O). Pub. L. 101-239, Sec. 2004(b)(3), amended
    subpar. (O) generally, substituting requirement that student loans
    be disbursed in accordance with section 1078-7 of this title for
    provisions requiring that certain loans be disbursed directly by
    lender in 2 or more installments, none exceeding more than one-half
    of the loan, or in installments pursuant to escrow provisions in
    subsec. (i).
      Subsec. (b)(1)(T)(i). Pub. L. 101-239, Sec. 2006(b)(1), inserted
    "emergency action," after "regulations for the".
      Subsec. (b)(1)(U). Pub. L. 101-239, Sec. 2006(b), in cl. (i)
    inserted "emergency action," after "regulations for the", and in
    cl. (ii) inserted "take emergency action," after "such program to".
      Subsec. (b)(1)(V). Pub. L. 101-239, Sec. 2002(b)(1)(A), added
    subpar. (V).
      Subsec. (c)(3). Pub. L. 101-239, Sec. 2002(b)(1)(B), amended par.
    (3) generally. Prior to amendment, par. (3) read as follows: "To
    the extent provided in regulations of the Secretary, a guaranty
    agreement under this subsection may contain provisions which permit
    such forbearance for the benefit of the student borrower as may be
    agreed upon by the parties to an insured loan and approved by the
    insurer. Such regulations shall not preclude guaranty agencies from
    permitting the parties to such a loan from entering into a
    forbearance agreement solely because the loan is in default."
      1988 - Subsec. (b)(1)(M)(v). Pub. L. 100-369, Sec. 7(c),
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      Subsec. (b)(1)(M)(vii). Pub. L. 100-369, Sec. 11(a), inserted
    "after January 1, 1986," after "service".
      Subsec. (b)(1)(O). Pub. L. 100-369, Sec. 5(b)(2), substituted
    "section 1078-2 or 1078-3" for "section 1078-1, 1078-2, or 1078-3".
      1987 - Subsec. (a)(2)(D). Pub. L. 100-50, Sec. 10(e), substituted
    "certifies the eligibility of any student" for "permits the
    student".
      Subsec. (b)(1)(A)(i). Pub. L. 100-50, Sec. 10(f)(1), substituted
    "first and" for "first or".
      Subsec. (b)(1)(B)(i). Pub. L. 100-50, Sec. 10(a)(1), inserted ",
    excluding loans made under section 1078-1 or 1078-2 of this title"
    after "undergraduate education".
      Subsec. (b)(1)(B)(ii). Pub. L. 100-50, Sec. 10(a)(2), inserted ",
    excluding loans made under section 1078-1 or 1078-2 of this title"
    after "graduate or professional student)".
      Subsec. (b)(1)(M)(vi). Pub. L. 100-50, Sec. 10(b)(1), inserted
    "nonprofit" before "private".
      Subsec. (b)(1)(M)(vii). Pub. L. 100-50, Sec. 10(b)(2), inserted
    "or serving in an internship or residency program leading to a
    degree or certificate awarded by an institution of higher
    education, a hospital, or a health care facility that offers
    postgraduate training" before semicolon at end.
      Subsec. (b)(1)(N). Pub. L. 100-50, Sec. 10(f)(2), inserted "and
    except in the case of attendance at an institution outside the
    United States, the funds shall be delivered directly to the
    student" before semicolon at end.
      Subsec. (b)(1)(O). Pub. L. 100-50, Sec. 10(c), substituted
    "$1,000 or more" for "more than $1,000".
      Subsec. (b)(1)(O)(i). Pub. L. 100-50, Sec. 10(f)(3), substituted
    "being disbursed" for "being dispensed".
      Subsec. (b)(1)(P). Pub. L. 100-50, Sec. 10(f)(4), added subpar.
    (P) and struck out former subpar. (P) which read as follows:
    "requires the borrower and the institution at which the borrower is
    in attendance to promptly notify the holder of the loan, directly
    or through the guaranty agency, concerning any change of address or
    status;".
      Subsec. (b)(1)(T). Pub. L. 100-50, Sec. 10(f)(5), inserted
    "(other than nonresidential correspondence schools)" after
    "eligible institutions".
      Subsec. (b)(5). Pub. L. 100-50, Sec. 10(g), substituted
    "paragraph (1)(M)(i)(III)" for "paragraph (1)(M)".
      Subsec. (b)(6)(A). Pub. L. 100-50, Sec. 10(h)(1), substituted
    "Until such time as the Secretary has implemented section 1092b of
    this title and is able to provide to guaranty agencies the
    information required by such section" for "Prior to the
    implementation of section 1092b of this title".
      Subsec. (b)(6)(B)(ii). Pub. L. 100-50, Sec. 10(h)(2), added cl.
    (ii) and struck out former cl. (ii) which read as follows: "the
    amount borrowed, the cumulative amount borrowed, the income
    reported on the loan application, and the purposes and the cost of
    attendance of the borrower."
      Subsec. (c)(1)(A). Pub. L. 100-203, Sec. 3002(b)(1), substituted
    "shall be deemed" for "shall, subject to section 1072(e) of this
    title, be deemed".
      Pub. L. 100-203, Sec. 3001(b)(1), substituted "shall, subject to
    section 1072(e) of this title, be deemed" for "shall be deemed".
      Subsec. (c)(6)(C)(iv). Pub. L. 100-50, Sec. 10(i), inserted at
    end "In the case of accounts brought into repayment status as a
    result of performing supplemental preclaims assistance, the cost of
    such assistance is a permissible charge to the borrower (for the
    cost of collection) for which the borrower shall be liable."
      Subsec. (c)(6)(D). Pub. L. 100-50, Sec. 10(j), inserted "and
    enforces" after "enacts".
      Subsec. (c)(9)(A). Pub. L. 100-203, Sec. 3002(b)(2), substituted
    "an amount equal to" for "an amount, subject to section 1072(e) of
    this title, equal to" in introductory provisions.
      Pub. L. 100-203, Sec. 3001(b)(2), substituted "an amount, subject
    to section 1072(e) of this title, equal to" for "an amount equal
    to" in introductory provisions.
      Subsec. (c)(9)(A)(i), (ii). Pub. L. 100-50, Sec. 10(k)(1),
    inserted "covered" before "loans".
      Subsec. (c)(9)(D). Pub. L. 100-50, Sec. 10(k)(2), added subpar.
    (D).
      Subsec. (f)(1)(B). Pub. L. 100-203, Sec. 3002(b)(3), substituted
    "shall be deemed" for "shall, subject to section 1072(e) of this
    title, be deemed".
      Pub. L. 100-203, Sec. 3001(b)(3), substituted "shall, subject to
    section 1072(e) of this title, be deemed" for "shall be deemed".
      Subsec. (i)(1). Pub. L. 100-50, Sec. 10(l), struck out "multiple"
    after "authorizing" and substituted "21 days" for "45 days".
      Subsec. (j). Pub. L. 100-50, Sec. 10(m), inserted provision at
    end that the guaranty agency consider the request of an eligible
    lender to serve as the lender-of-last-resort pursuant to this
    subsection.
      Subsec. (k)(1). Pub. L. 100-203, Sec. 3003, substituted
    "Notwithstanding any other provision of law, in" for "In",
    "guaranty agency shall" for "guaranty agency may", and "subsection
    shall include" for "subsection may include".

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.
      Amendment by section 8005(b) of Pub. L. 109-171 effective July 1,
    2007, see section 8005(e) of Pub. L. 109-171, set out as a note
    under section 1075 of this title.
      Pub. L. 109-171, title VIII, Sec. 8007(f), Feb. 8, 2006, 120
    Stat. 161, provided that: "The amendments made by this section
    [amending this section and sections 1087e, 1087dd, and 1088 of this
    title] shall apply with respect to loans for which the first
    disbursement is made on or after July 1, 2001."
      Pub. L. 109-171, title VIII, Sec. 8014(a)(2), Feb. 8, 2006, 120
    Stat. 168, provided that: "The amendment made by this subsection
    [amending this section] shall apply with respect to loans for which
    the first disbursement of principal is made on or after July 1,
    2006."
      Pub. L. 109-171, title VIII, Sec. 8014(c)(2), Feb. 8, 2006, 120
    Stat. 170, provided that: "The amendments made by this subsection
    [amending this section] shall apply with respect to loans for which
    the first disbursement of principal is made on or after July 1,
    2006."

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-314 applicable with respect to interest,
    and any special allowance under section 1087-1 of this title, that
    accrue for months beginning on or after Oct. 1, 2003, on student
    loans described in section 2174(c) of Title 10, Armed Forces, that
    were made before, on, or after such date to members of the Armed
    Forces who are on active duty (as defined in section 101(d) of
    Title 10) on or after that date, see section 651(e) of Pub. L. 107-
    314, set out as an Effective Date note under section 2174 of Title
    10.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by section 417(a), (b), (c)(2)-(k) of Pub. L. 105-244
    effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105-
    244, see section 3 of Pub. L. 105-244, set out as a note under
    section 1001 of this title.
      Pub. L. 105-244, title IV, Sec. 417(c)(1)(B), Oct. 7, 1998, 112
    Stat. 1687, provided that: "The amendments made by subparagraph (A)
    of this paragraph [amending this section] apply to loans for which
    the first disbursement is made on or after October 1, 1998."

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Section 355(b) of Pub. L. 103-382 provided that: "Subsection (a)
    [amending this section] and the amendment made by subsection (a)
    shall take effect on August 10, 1993."

                     EFFECTIVE DATE OF 1993 AMENDMENTS                 
      Amendment by section 2(c)(11), (12), (14)-(17), (22)-(28) of Pub.
    L. 103-208 effective as if included in the Higher Education
    Amendments of 1992, Pub. L. 102-325, except as otherwise provided,
    amendment by section 2(c)(13)(A) of Pub. L. 103-208 effective on
    and after July 1, 1994, amendment by section 2(c)(13)(B), (C) and
    (18) of Pub. L. 103-208 effective on and after Dec. 20, 1993, and
    amendment by section 2(c)(19)-(21) of Pub. L. 103-208 effective on
    and after 30 days after Dec. 20, 1993, see section 5(a), (b)(2),
    (3), (6) of Pub. L. 103-208, set out as a note under section 1051
    of this title.
      Amendment by Pub. L. 103-82 effective Oct. 1, 1993, see section
    123 of Pub. L. 103-82, set out as a note under section 1701 of
    Title 16, Conservation.
      Section 4043(b) of Pub. L. 103-66 provided that: "The amendments
    made by this section [amending this section] shall take effect on
    July 1, 1994."
      Section 4102(d) of Pub. L. 103-66 provided that: "The amendments
    made by this section [amending this section and sections 1078-8 and
    1087-1 of this title] shall take effect on July 1, 1994."
      Section 4107(c) of Pub. L. 103-66 provided that: "The amendments
    made by this section [amending this section] shall take effect on
    October 1, 1993."
      Section 4108(c) of Pub. L. 103-66 provided that: "The amendments
    made by this section [amending this section] shall apply to any
    loan for which the first disbursement is made on or after October
    1, 1993."
      Section 4110(b) of Pub. L. 103-66 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    October 1, 1993."
      Section 4112(b) of Pub. L. 103-66 provided that: "The amendment
    made by this section [amending this section] shall take effect on
    October 1, 1993."
      Section 4201(b) of Pub. L. 103-66 provided that: "The amendment
    made by this section [amending this section] shall take effect on
    October 1, 1994."

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Section 432 of Pub. L. 102-325, as amended by Pub. L. 103-208,
    Sec. 2(k)(5), Dec. 20, 1993, 107 Stat. 2486, provided that:
      "(a) In General. - The changes made in part B of title IV of the
    Act [20 U.S.C. 1071 et seq.] by the amendments made by this part
    [part B (Secs. 411-432) 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 B;
        "(2) that the changes made in sections 425(a), 428(b)(1)(A),
      428(b)(1)(B), 428A(b), 428B(b) [20 U.S.C. 1075(a), 1078(b)(1)(A),
      (B), 1078-1(b), 1078-2(b)], relating to annual and aggregate loan
      limits, shall apply with respect to loans for which the first
      disbursement is made on or after July 1, 1993, except that - 
          "(A) the changes made in section 425(a)(1)(A)(i) and
        428(b)(1)(A)(i) shall apply with respect to loans for which the
        first disbursement is made on or after October 1, 1992; and
          "(B) the changes made in section 425(a)(1)(A)(iv) and
        428(b)(1)(A)(iv) shall apply with respect to loans to cover the
        costs of instruction for periods of enrollment beginning on or
        after October 1, 1993;
        "(3) that the changes made in sections 427(a)(2)(C),
      428(b)(1)(M), and 428B(d)(1) [20 U.S.C. 1077(a)(2)(C),
      1078(b)(1)(M), 1078-2(d)(1)], relating to deferments, shall apply
      with respect to loans for which the first disbursement is made on
      or after July 1, 1993, to an individual who is a new borrower on
      the date such individual applies for a loan;
        "(4) that the changes made in sections 428(a)(7) and
      428(f)(1)(C), relating to payments for unconsummated loans, shall
      apply with respect to loans made on or after October 1, 1992;
        "(5) that the changes made in sections 427(a)(2)(H) and
      428(b)(1)(E)(i), relating to offering graduated or income
      sensitive repayment options, shall apply with respect to loans
      for which the first disbursement is made on or after July 1,
      1993, to an individual who is a new borrower on the date such
      individual applies for a loan;
        "(6) that the changes made in section 428(b)(4), relating to
      teacher deferment, shall apply with respect to loans for which
      the first disbursement is made on or after July 1, 1993, to an
      individual who is a new borrower on the date such individual
      applies for a loan;
        "(7) that section 428(c)(2)(H)(i) as added by such amendments
      shall be effective on and after October 1, 1992;
        "(8) that the changes in section 428(c)(3) with respect to
      forbearance after a default shall be effective on and after
      October 1, 1992;
        "(9) that the changes made in section 428B(a) [20 U.S.C. 1078-
      2(a)] with respect to use of credit histories shall apply with
      respect to loans for which the first disbursement is made on or
      after July 1, 1993;
        "(10) that section 428B(c) as added by such amendments,
      relating to disbursement of Federal PLUS Loans, shall apply with
      respect to loans for which the first disbursement is made on or
      after October 1, 1992;
        "(11) that the changes made in section 428C [20 U.S.C. 1078-3],
      relating to consolidation loans, shall apply with respect to
      loans under such section for which the application is received by
      an eligible lender on or after January 1, 1993;
        "(12) that section 428H [20 U.S.C. 1078-8] as added by such
      amendments shall be effective with respect to loans made to cover
      the cost of instruction for periods of enrollment beginning on or
      after October 1, 1992;
        "(13) that the changes made in section 438 [20 U.S.C. 1087-1]
      shall apply with respect to loans for which the first
      disbursement is made on or after October 1, 1992;
        "(14) that the changes in section 439(d)(1) [20 U.S.C. 1087-
      2(d)(1)], relating to facilities loans, shall apply with respect
      to applications received on or after July 1, 1992; and
        "(15) that the changes in the designation or names of loans or
      programs under part B is [sic] effective with respect to
      applications or other documents (used in making such loans) that
      are printed after the date of enactment of this Act.
      "(b) New Borrowers. - For purposes of the 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.]."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 2002(a)(2) of Pub. L. 101-239 applicable to
    any loan made, insured, or guaranteed under this part or part D of
    this subchapter, including a loan made before Dec. 19, 1989, and
    amendment effective Jan. 1, 1990, but inapplicable with respect to
    any portion of a period of deferment granted to a borrower under
    section 1077(a)(2)(C)(i), 1078(b)(1)(M)(i), or 1087dd(c)(2)(A)(i)
    of this title for service in a medical internship or residency
    program completed prior to Dec. 19, 1989, see section 2002(a)(4) of
    Pub. L. 101-239, set out as a note under section 1077 of this
    title.
      Section 2002(b)(2) of Pub. L. 101-239 provided that: "The
    amendments made by this subsection [amending this section] shall
    apply with respect to loans made before, on, or after the date of
    enactment of this Act [Dec. 19, 1989]."
      Amendment by section 2004(b)(1), (3) of Pub. L. 101-239
    applicable with respect to loans made to cover the cost of
    instruction for periods of enrollment beginning on or after Jan. 1,
    1990, see section 2004(c) of Pub. L. 101-239, set out as a note
    under section 1077 of this title.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by section 11(a) of Pub. L. 100-369 applicable with
    respect to loans made, insured or guaranteed under this part on,
    before, or after June 3, 1987, see section 11(b) of Pub. L. 100-
    369, set out as a note under section 1077 of this title.
      Amendment by section 5(b)(2) of Pub. L. 100-369 effective with
    respect to loans made on or after Oct. 1, 1988, and amendment by
    section 7(c) of Pub. L. 100-369 effective July 18, 1988, see
    section 13(b) of Pub. L. 100-369, set out as a note under section
    1091 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENTS                 
      Section 3002(b)(1)-(3) of Pub. L. 100-203 provided in part that
    the amendments by section 3002(b)(1)-(3) of Pub. L. 100-203 are
    effective Sept. 30, 1989.
      Amendment by section 10(b) of Pub. L. 100-50 applicable with
    respect to loans made, insured or guaranteed under this part on,
    before, or after June 3, 1987, see section 11(b) of Pub. L. 100-
    369, set out as an Effective Date of 1988 Amendment note under
    section 1077 of this title.
      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, 1987, with subsection (b)(1)(M)
    (except cls. (viii), (ix), and (x)) applicable only to loans to new
    borrowers made to cover the costs of instruction for periods of
    enrollment beginning on or after July 1, 1987, or disbursed on or
    after July 1, 1987, subsection (b)(1)(A) and (B) applicable with
    respect only to loans disbursed on or after Jan. 1, 1987, or made
    to cover the costs of instruction for periods of enrollment
    beginning on or after Jan. 1, 1987, and subsection (b)(1)(H)
    applicable with respect only to loans for which the borrower files
    an application on or after July 1, 1987, see section 402(b) of Pub.
    L. 99-498, set out as a note under section 1071 of this title.

                      CONSTRUCTION OF 2006 AMENDMENT                  
      Pub. L. 109-171, title VIII, Sec. 8007(e), Feb. 8, 2006, 120
    Stat. 161, provided that: "Nothing in the amendments made by this
    section [amending this section and sections 1087e, 1087dd, and 1088
    of this title] shall be construed to authorize any refunding of any
    repayment of a loan."

       GUARANTEED STUDENT LOAN FAMILY CONTRIBUTION SCHEDULE FOR THE
           PERIODS OF INSTRUCTION BEGINNING AFTER JUNE 30, 1983
      Pub. L. 97-301, Sec. 9, Oct. 13, 1982, 96 Stat. 1403, as amended
    by Pub. L. 98-79, Sec. 4(b), Aug. 15, 1983, 97 Stat. 481; Pub. L.
    98-511, title VII, Sec. 707(7), (8), Oct. 19, 1984, 98 Stat. 2407,
    2408; Pub. L. 99-272, title XVI, Sec. 16018(b), Apr. 7, 1986, 100
    Stat. 348; Pub. L. 99-498, title IV, Sec. 408(a)(6), (7), Oct. 17,
    1986, 100 Stat. 1495, specified that the family contribution
    schedule for specific periods of instruction through June 30, 1988,
    for loans made, insured, or guaranteed under this part be the
    family contribution schedule for such loans for the period of
    instruction from July 1, 1982, through June 30, 1983, and required
    the family contribution schedule for the period of instruction from
    July 1, 1982, through June 30, 1983, to be modified by the
    Secretary of Education for use for each of the specific periods of
    instruction to reflect the most recent and relevant data, prior to
    repeal by Pub. L. 99-498, title IV, Sec. 408(b), Oct. 17, 1986, 100
    Stat. 1495, effective with respect to any academic year beginning
    on or after July 1, 1988, Pub. L. 97-301.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) See References in Text note below.

    (!3) So in original. Probably should be followed by "section".

               

    (!4) So in original. The period probably should be a semicolon.

    (!5) See References in Text note below.

    (!6) See References in Text note below.

    (!7) So in original.

    (!8) So in original. No par. (2) has been enacted.

    (!9) So in original. The comma probably should not appear.


-End-



-CITE-
    20 USC Sec. 1078-1                                          01/03/2007

-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. 1078-1. Voluntary flexible agreements with guaranty agencies

-STATUTE-
    (a) Voluntary agreements
      (1) Authority
        Subject to paragraph (2),(!1) the Secretary may enter into a
      voluntary, flexible agreement with a guaranty agency under this
      section, in lieu of agreements with a guaranty agency under
      subsections (b) and (c) of section 1078 of this title. The
      Secretary may waive or modify any requirement under such
      subsections, except that the Secretary may not waive - 

          (A) any statutory requirement pertaining to the terms and
        conditions attached to student loans or default claim payments
        made to lenders;
          (B) the prohibitions on inducements contained in section
        1078(b)(3) of this title; or
          (C) the Federal default fee required by section 1078(b)(1)(H)
        of this title and the second sentence of section 1078-8(h) of
        this title.
      (2) Eligibility
        During fiscal years 1999, 2000, and 2001, the Secretary may
      enter into a voluntary, flexible agreement with not more than 6
      guaranty agencies that had 1 or more agreements with the
      Secretary under subsections (b) and (c) of section 1078 of this
      title as of the day before October 7, 1998. Beginning in fiscal
      year 2002, any guaranty agency or consortium thereof may enter
      into a voluntary flexible agreement with the Secretary.
    (b) Terms of agreement
      An agreement between the Secretary and a guaranty agency under
    this section - 
        (1) shall be developed by the Secretary, in consultation with
      the guaranty agency, on a case-by-case basis;
        (2) may only include provisions - 
          (A) specifying the responsibilities of the guaranty agency
        under the agreement, with respect to - 
            (i) administering the issuance of insurance on loans made
          under this part on behalf of the Secretary;
            (ii) monitoring insurance commitments made under this part;
            (iii) default aversion activities;
            (iv) review of default claims made by lenders;
            (v) payment of default claims;
            (vi) collection of defaulted loans;
            (vii) adoption of internal systems of accounting and
          auditing that are acceptable to the Secretary, and reporting
          the result thereof to the Secretary in a timely manner, and
          on an accurate, and auditable basis;
            (viii) timely and accurate collection and reporting of such
          other data as the Secretary may require to carry out the
          purposes of the programs under this subchapter and part C of
          subchapter I of chapter 34 of title 42;
            (ix) monitoring of institutions and lenders participating
          in the program under this part; and
            (x) informational outreach to schools and students in
          support of access to higher education;

          (B) regarding the fees the Secretary shall pay, in lieu of
        revenues that the guaranty agency may otherwise receive under
        this part, to the guaranty agency under the agreement, and
        other funds that the guaranty agency may receive or retain
        under the agreement, except that in no case may the cost to the
        Secretary of the agreement, as reasonably projected by the
        Secretary, exceed the cost to the Secretary, as similarly
        projected, in the absence of the agreement;
          (C) regarding the use of net revenues, as described in the
        agreement under this section, for such other activities in
        support of postsecondary education as may be agreed to by the
        Secretary and the guaranty agency;
          (D) regarding the standards by which the guaranty agency's
        performance of the agency's responsibilities under the
        agreement will be assessed, and the consequences for a guaranty
        agency's failure to achieve a specified level of performance on
        1 or more performance standards;
          (E) regarding the circumstances in which a guaranty agency's
        agreement under this section may be ended in advance of the
        agreement's expiration date;
          (F) regarding such other businesses, previously purchased or
        developed with reserve funds, that relate to the program under
        this part and in which the Secretary permits the guaranty
        agency to engage; and
          (G) such other provisions as the Secretary may determine to
        be necessary to protect the United States from the risk of
        unreasonable loss and to promote the purposes of this part;

        (3) shall provide for uniform lender participation with the
      guaranty agency under the terms of the agreement; and
        (4) shall not prohibit or restrict borrowers from selecting a
      lender of the borrower's choosing, subject to the prohibitions
      and restrictions applicable to the selection under this chapter.
    (c) Public notice
      (1) In general
        The Secretary shall publish in the Federal Register a notice to
      all guaranty agencies that sets forth - 
          (A) an invitation for the guaranty agencies to enter into
        agreements under this section; and
          (B) the criteria that the Secretary will use for selecting
        the guaranty agencies with which the Secretary will enter into
        agreements under this section.
      (2) Agreement notice
        The Secretary shall notify the Chairperson and the Ranking
      Minority Member of the Committee on Labor and Human Resources of
      the Senate and the Committee on Education and the Workforce of
      the House of Representatives not later than 30 days prior to
      concluding an agreement under this section. The notice shall
      contain - 
          (A) a description of the voluntary flexible agreement and the
        performance goals established by the Secretary for the
        agreement;
          (B) a list of participating guaranty agencies and the
        specific statutory or regulatory waivers provided to each
        guaranty agency;
          (C) a description of the standards by which each guaranty
        agency's performance under the agreement will be assessed; and
          (D) a description of the fees that will be paid to each
        participating guaranty agency.
      (3) Waiver notice
        The Secretary shall notify the Chairperson and the Ranking
      Minority Member of the Committee on Labor and Human Resources of
      the Senate and the Committee on Education and the Workforce of
      the House of Representatives not later than 30 days prior to the
      granting of a waiver pursuant to subsection (a)(2) (!1) of this
      section to a guaranty agency that is not a party to a voluntary
      flexible agreement.
      (4) Public availability
        The text of any voluntary flexible agreement, and any
      subsequent revisions, and any waivers related to section
      1078(b)(3) of this title that are not part of such an agreement,
      shall be readily available to the public.
      (5) Modification notice
        The Secretary shall notify the Chairperson and the Ranking
      Minority Members of the Committee on Labor and Human Resources of
      the Senate and the Committee on Education and the Workforce of
      the House of Representatives 30 days prior to any modifications
      to an agreement under this section.
    (d) Termination
      At the expiration or early termination of an agreement under this
    section, the Secretary shall reinstate the guaranty agency's prior
    agreements under subsections (b) and (c) of section 1078 of this
    title, subject only to such additional requirements as the
    Secretary determines to be necessary in order to ensure the
    efficient transfer of responsibilities between the agreement under
    this section and the agreements under subsections (b) and (c) of
    section 1078 of this title, and including the guaranty agency's
    compliance with reserve requirements under sections 1072 and 1078
    of this title.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 428A, as added Pub. L. 105-244,
    title IV, Sec. 418, Oct. 7, 1998, 112 Stat. 1691; amended Pub. L.
    109-171, title VIII, Sec. 8014(b)(3), (f), Feb. 8, 2006, 120 Stat.
    169, 170.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Paragraph (2) of subsec. (a) of this section, referred to in
    subsecs. (a)(1) and (c)(3), was struck out by Pub. L. 109-171, Sec.
    8014(f)(2), and par. (3) was redesignated (2). See 2006 Amendment
    note below.
      This chapter, referred to in subsec. (b)(4), 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.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1078-1, Pub. L. 89-329, title IV, Sec. 428A, as
    added Pub. L. 99-498, title IV, Sec. 402(a), Oct. 17, 1986, 100
    Stat. 1384; amended Pub. L. 100-50, Sec. 10(n), (o)(1), (p)(1),
    (q), (r)(1), June 3, 1987, 101 Stat. 343, 344; Pub. L. 100-369,
    Secs. 3-5(a), (b)(3), July 18, 1988, 102 Stat. 835, 836; Pub. L.
    101-239, title II, Sec. 2003(a)(1), (b)(1), (c)(1), Dec. 19, 1989,
    103 Stat. 2112, 2114; Pub. L. 101-508, title III, Sec. 3006(b),
    Nov. 5, 1990, 104 Stat. 1388-28; Pub. L. 102-26, Sec. 2(c)(1), Apr.
    9, 1991, 105 Stat. 123; Pub. L. 102-325, title IV, Sec. 417, July
    23, 1992, 106 Stat. 529; Pub. L. 103-208, Sec. 2(c)(29)-(32), Dec.
    20, 1993, 107 Stat. 2465, 2466, related to Federal supplemental
    loans for students, prior to repeal by Pub. L. 103-66, title IV,
    Sec. 4047(b), (d), Aug. 10, 1993, 107 Stat. 364, effective July 1,
    1994.
      Another prior section 1078-1, Pub. L. 89-329, title IV, Sec.
    428A, as added Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 1976,
    90 Stat. 2120; amended Pub. L. 95-43, Sec. 1(a)(30)-(32), June 15,
    1977, 91 Stat. 216; Pub. L. 96-374, title IV, Sec. 412(e), (f),
    title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1416, 1417,
    1503; Pub. L. 97-35, title V, Sec. 535(e), Aug. 13, 1981, 95 Stat.
    455, related to student loan insurance programs, prior to the
    general amendment of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      2006 - Subsec. (a)(1)(B). Pub. L. 109-171, Sec. 8014(f)(1),
    struck out "unless the Secretary determines that such a waiver is
    consistent with the purposes of this section and is limited to
    activities of the guaranty agency within the State or States for
    which the guaranty agency serves as the designated guarantor"
    before "; or".
      Subsec. (a)(1)(C). Pub. L. 109-171, Sec. 8014(b)(3), added
    subpar. (C).
      Subsec. (a)(2), (3). Pub. L. 109-171, Sec. 8014(f)(2), (3),
    redesignated par. (3) as (2) and struck out heading and text of
    former par. (2). Text read as follows: "If the Secretary grants a
    waiver pursuant to paragraph (1)(B), any guaranty agency doing
    business within the affected State or States may request, and the
    Secretary shall grant, an identical waiver to such guaranty agency
    under the same terms and conditions (including service area
    limitations) as govern the original waiver."
      Subsec. (a)(4). Pub. L. 109-171, Sec. 8014(f)(4), struck out par.
    (4), which required the Secretary to report to congressional
    committees regarding the impact that the voluntary flexible
    agreements had on program integrity, program and cost efficiencies,
    and the availability and delivery of student financial aid.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

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

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1078-2                                          01/03/2007

-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. 1078-2. Federal PLUS loans

-STATUTE-
    (a) Authority to borrow
      (1) Authority and eligibility
        A graduate or professional student or the parents of a
      dependent student shall be eligible to borrow funds under this
      section in amounts specified in subsection (b) of this section,
      if - 
          (A) the graduate or professional student or the parents do
        not have an adverse credit history as determined pursuant to
        regulations promulgated by the Secretary;
          (B) in the case of a graduate or professional student or
        parent who has been convicted of, or has pled nolo contendere
        or guilty to, a crime involving fraud in obtaining funds under
        this subchapter and part C of subchapter I of chapter 34 of
        title 42, such graduate or professional student or parent has
        completed the repayment of such funds to the Secretary, or to
        the holder in the case of a loan under this subchapter and part
        C of subchapter I of chapter 34 of title 42 obtained by fraud;
        and
          (C) the graduate or professional student or the parents meet
        such other eligibility criteria as the Secretary may establish
        by regulation, after consultation with guaranty agencies,
        eligible lenders, and other organizations involved in student
        financial assistance.
      (2) Terms, conditions, and benefits
        Except as provided in subsections (c), (d), and (e) of this
      section, loans made under this section shall have the same terms,
      conditions, and benefits as all other loans made under this part.
      (3) Special rule
        Whenever necessary to carry out the provisions of this section,
      the terms "student" and "borrower" as used in this part shall
      include a parent borrower under this section.
    (b) Limitation based on need
      Any loan under this section may be counted as part of the
    expected family contribution in the determination of need under
    this subchapter and part C of subchapter I of chapter 34 of title
    42, but no loan may be made to any graduate or professional student
    or any parent under this section for any academic year in excess of
    (A) the student's estimated cost of attendance, minus (B) other
    financial aid as certified by the eligible institution under
    section 1078(a)(2)(A) of this title. The annual insurable limit on
    account of any student shall not be deemed to be exceeded by a line
    of credit under which actual payments to the borrower will not be
    made in any year in excess of the annual limit.
    (c) PLUS loan disbursement
      All loans made under this section shall be disbursed in
    accordance with the requirements of section 1078-7 of this title
    and shall be disbursed by - 
        (1) an electronic transfer of funds from the lender to the
      eligible institution; or
        (2) a check copayable to the eligible institution and the
      graduate or professional student or parent borrower.
    (d) Payment of principal and interest
      (1) Commencement of repayment
        Repayment of principal on loans made under this section shall
      commence not later than 60 days after the date such loan is
      disbursed by the lender, subject to deferral during any period
      during which the graduate or professional student or the parent
      meets the conditions required for a deferral under section
      1077(a)(2)(C) or 1078(b)(1)(M) of this title.
      (2) Capitalization of interest
        Interest on loans made under this section for which payments of
      principal are deferred pursuant to paragraph (1) of this
      subsection shall, if agreed upon by the borrower and the lender
      (A) be paid monthly or quarterly, or (B) be added to the
      principal amount of the loan not more frequently than quarterly
      by the lender. Such capitalization of interest shall not be
      deemed to exceed the annual insurable limit on account of the
      borrower.
      (3) Subsidies prohibited
        No payments to reduce interest costs shall be paid pursuant to
      section 1078(a) of this title on loans made pursuant to this
      section.
      (4) Applicable rates of interest
        Interest on loans made pursuant to this section shall be at the
      applicable rate of interest provided in section 1077a of this
      title.
      (5) Amortization
        The amount of the periodic payment and the repayment schedule
      for any loan made pursuant to this section shall be established
      by assuming an interest rate equal to the applicable rate of
      interest at the time the repayment of the principal amount of the
      loan commences. At the option of the lender, the note or other
      written evidence of the loan may require that - 
          (A) the amount of the periodic payment will be adjusted
        annually, or
          (B) the period of repayment of principal will be lengthened
        or shortened,

      in order to reflect adjustments in interest rates occurring as a
      consequence of section 1077a(c)(4) of this title.
    (e) Refinancing
      (1) Refinancing to secure combined payment
        An eligible lender may at any time consolidate loans held by it
      which are made under this section to a borrower, including loans
      which were made under this section as in effect prior to October
      17, 1986, under a single repayment schedule which provides for a
      single principal payment and a single payment of interest, and
      shall calculate the repayment period for each included loan from
      the date of the commencement of repayment of the most recent
      included loan. Unless the consolidated loan is obtained by a
      borrower who is electing to obtain variable interest under
      paragraph (2) or (3), such consolidated loan shall bear interest
      at the weighted average of the rates of all included loans. The
      extension of any repayment period of an included loan pursuant to
      this paragraph shall be reported (if required by them) to the
      Secretary or guaranty agency insuring the loan, as the case may
      be, but no additional insurance premiums shall be payable with
      respect to any such extension. The extension of the repayment
      period of any included loan shall not require the formal
      extension of the promissory note evidencing the included loan or
      the execution of a new promissory note, but shall be treated as
      an administrative forbearance of the repayment terms of the
      included loan.
      (2) Refinancing to secure variable interest rate
        An eligible lender may reissue a loan which was made under this
      section before July 1, 1987, or under this section as in effect
      prior to October 17, 1986, in order to permit the borrower to
      obtain the interest rate provided under section 1077a(c)(4) of
      this title. A lender offering to reissue a loan or loans for such
      purpose may charge a borrower an amount not to exceed $100 to
      cover the administrative costs of reissuing such loan or loans,
      not more than one-half of which shall be paid to the guarantor of
      the loan being reissued to cover costs of reissuance. Reissuance
      of a loan under this paragraph shall not affect any insurance
      applicable with respect to the loan, and no additional insurance
      fee may be charged to the borrower with respect to the loan.
      (3) Refinancing by discharge of previous loan
        A borrower who has applied to an original lender for reissuance
      of a loan under paragraph (2) and who is denied such reissuance
      may obtain a loan from another lender for the purpose of
      discharging the loan from such original lender. A loan made for
      such purpose - 
          (A) shall bear interest at the applicable rate of interest
        provided under section 1077a(c)(4) of this title;
          (B) shall not result in the extension of the duration of the
        note (other than as permitted under subsection (c)(5)(B) of
        this section);
          (C) may be subject to an additional insurance fee but shall
        not be subject to the administrative cost charge permitted by
        paragraph (2) of this subsection; and
          (D) shall be applied to discharge the borrower from any
        remaining obligation to the original lender with respect to the
        original loan.
      (4) Certification in lieu of promissory note presentation
        Each new lender may accept certification from the original
      lender of the borrower's original loan in lieu of presentation of
      the original promissory note.
      (5) Notification to borrowers of availability of refinancing
        options
        Each holder of a loan made under this section or under this
      section as in effect prior to October 17, 1986, shall, not later
      than October 1, 1987, in the case of loans made before October
      17, 1986, notify the borrower of such loan - 
          (A) of the refinancing options for which the borrower is
        eligible under this subsection;
          (B) of those options which will be made available by the
        holder and of the practical consequences of such options in
        terms of interest rates and monthly and total payments for a
        set of loan examples; and
          (C) that, with respect to any option that the holder will not
        make available, the holder will, to the extent practicable,
        refer the borrower to an eligible lender offering such option.
    (f) Verification of immigration status and social security number
      A parent who wishes to borrow funds under this section shall be
    subject to verification of the parent's - 
        (1) immigration status in the same manner as immigration status
      is verified for students under section 1091(g) of this title; and
        (2) social security number in the same manner as social
      security numbers are verified for students under section 1091(p)
      of this title.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 428B, as added Pub. L. 99-498,
    title IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1386; amended Pub.
    L. 100-50, Sec. 10(o), (p)(2), (q), (r)(1), June 3, 1987, 101 Stat.
    343, 344; Pub. L. 102-325, title IV, Sec. 418, July 23, 1992, 106
    Stat. 531; Pub. L. 103-66, title IV, Sec. 4109(a), Aug. 10, 1993,
    107 Stat. 369; Pub. L. 105-178, title VIII, Sec. 8301(a)(2), June
    9, 1998, 112 Stat. 497; Pub. L. 105-244, title IV, Secs. 416(a)(2),
    419, Oct. 7, 1998, 112 Stat. 1680, 1694; Pub. L. 109-171, title
    VIII, Secs. 8005(c), 8014(g), Feb. 8, 2006, 120 Stat. 158, 171.)

-COD-
                               CODIFICATION                           
      October 17, 1986, referred to in subsec. (e)(5), was in the
    original "the date of enactment of this Act", which was translated
    as meaning the date of enactment of Pub. L. 99-498 which enacted
    this section in the general revision of this part, to reflect the
    probable intent of Congress.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1078-2, Pub. L. 89-329, title IV, Sec. 428B, as
    added Pub. L. 96-374, title IV, Sec. 419, Oct. 3, 1980, 94 Stat.
    1424; amended Pub. L. 97-35, title V, Secs. 532(b)(3), 534(a)(2),
    (c)(1), (2), Aug. 13, 1981, 95 Stat. 452, 454; Pub. L. 98-79, Sec.
    12, Aug. 15, 1983, 97 Stat. 484, related to auxiliary loans to
    assist students, prior to the general revision of this part by Pub.
    L. 99-498.

                                AMENDMENTS                            
      2006 - Subsec. (a)(1). Pub. L. 109-171, Sec. 8005(c)(1)(A), in
    introductory provisions, substituted "A graduate or professional
    student or the parents" for "Parents".
      Subsec. (a)(1)(A). Pub. L. 109-171, Sec. 8005(c)(1)(B),
    substituted "the graduate or professional student or the parents"
    for "the parents".
      Subsec. (a)(1)(B). Pub. L. 109-171, Sec. 8014(g)(1), (3), added
    subpar. (B). Former subpar. (B) redesignated (C).
      Pub. L. 109-171, Sec. 8005(c)(1)(C), substituted "the graduate or
    professional student or the parents" for "the parents".
      Subsec. (a)(1)(C). Pub. L. 109-171, Sec. 8014(g)(2), redesignated
    subpar. (B) as (C).
      Subsec. (b). Pub. L. 109-171, Sec. 8005(c)(2), substituted "any
    graduate or professional student or any parent" for "any parent".
      Subsec. (c)(2). Pub. L. 109-171, Sec. 8005(c)(3), substituted
    "graduate or professional student or parent" for "parent".
      Subsec. (d)(1). Pub. L. 109-171, Sec. 8005(c)(4), substituted
    "the graduate or professional student or the parent" for "the
    parent".
      1998 - Subsec. (a). Pub. L. 105-244, Sec. 419(1), amended heading
    and text of subsec. (a) generally. Prior to amendment, text read as
    follows: "Parents of a dependent student, who do not have an
    adverse credit history as determined pursuant to regulations of the
    Secretary, shall be eligible to borrow funds under this section in
    amounts specified in subsection (b) of this section, and unless
    otherwise specified in subsections (c), (d), and (e) of this
    section, such loans shall have the same terms, conditions, and
    benefits as all other loans made under this part. Whenever
    necessary to carry out the provisions of this section, the terms
    'student' and 'borrower' as used in this part shall include a
    parent borrower under this section."
      Subsec. (d)(4). Pub. L. 105-244, Sec. 416(a)(2), substituted
    "section 1077a" for "section 1077a(c)".
      Pub. L. 105-178 which directed substitution of "section 1077a of
    this title for loans made under this section" for "section 1077a(c)
    of this title" in "section 428B(d)(4) (20 U.S.C. 1078-2(d)(4))"
    could not be executed because it did not indicate what act was to
    be amended.
      Subsec. (f). Pub. L. 105-244, Sec. 419(2), added subsec. (f).
      1993 - Subsec. (c). Pub. L. 103-66 inserted "shall be disbursed
    in accordance with the requirements of section 1078-7 of this title
    and" after "under this section".
      1992 - Pub. L. 102-325, Sec. 418(a), substituted "Federal PLUS"
    for "PLUS" in section catchline.
      Subsec. (a). Pub. L. 102-325, Sec. 418(b)(1), substituted
    "subsections (c), (d), and (e)" for "subsections (c) and (d)" and
    inserted ", who do not have an adverse credit history as determined
    pursuant to regulations of the Secretary," after "a dependent
    student".
      Subsec. (b). Pub. L. 102-325, Sec. 418(b)(2), struck out subsec.
    (b) designation and heading, redesignated par. (3) as subsec. (b),
    and struck out pars. (1) and (2) which set the annual limit on the
    amount parents may borrow for one student in any academic year at
    $4,000 and set the aggregate insured principal amount for insured
    loans at not to exceed $20,000.
      Subsec. (c). Pub. L. 102-325, Sec. 418(b)(4), added subsec. (c).
    Former subsec. (c) redesignated (d).
      Subsec. (d). Pub. L. 102-325, Sec. 418(c), (d), amended pars. (1)
    and (2) generally. Prior to amendment, pars. (1) and (2) read as
    follows:
      "(1) Commencement of repayment. - Repayment of principal on loans
    made under this section shall commence not later than 60 days after
    the date such loan is disbursed by the lender, subject to deferral
    (A) during any period during which the parent meets the conditions
    required for a deferral under clause (i), (viii), or (ix) of
    section 1077(a)(2)(C) or 1078(b)(1)(M) of this title; and (B)
    during any period during which the borrower has a dependent student
    for whom a loan obligation was incurred under this section and who
    meets the conditions required for a deferral under clause (i) of
    either such section.
      "(2) Capitalization of interest. - Interest on loans made under
    this section for which payments of principal are deferred pursuant
    to paragraph (1) of this subsection shall, if agreed upon by the
    borrower and the lender (A) be paid monthly or quarterly or (B) be
    added to the principal amount of the loan on a quarterly basis by
    the lender. Such capitalization of interest shall not be deemed to
    exceed the annual insurable limit on account of the student."
      Pub. L. 102-325, Sec. 418(b)(3), redesignated subsec. (c) as (d).
    Former subsec. (d) redesignated (e).
      Subsec. (e). Pub. L. 102-325, Sec. 418(b)(3), redesignated
    subsec. (d) as (e).
      1987 - Subsec. (a). Pub. L. 100-50, Sec. 10(o)(2)(A), struck out
    ", but such a parent borrower shall not be eligible for any
    deferment pursuant to section 1077(a)(2)(C) or 1078(b)(1)(M) of
    this title except for the deferments allowed (with respect to the
    student) under clauses (i), (viii), and (ix) of such sections"
    after "borrower under this section".
      Subsec. (b)(3). Pub. L. 100-50, Sec. 10(p)(2), amended first
    sentence generally, substituting "for any academic year in excess
    of (A) the student's estimated cost of attendance, minus (B) other
    financial aid" for "which would cause the combined loans of the
    parent and the student for any academic year to exceed the
    student's estimated cost of attendance minus such student's
    estimated financial assistance".
      Subsec. (c)(1). Pub. L. 100-50, Sec. 10(o)(2)(B), struck out
    "pursuant to sections 1077(a)(2)(C)(i), (viii), and (ix) and
    1078(b)(1)(M)(i), (viii), and (ix) of this title" after "subject to
    deferral" and inserted in lieu cls. (A) and (B).
      Subsec. (c)(2). Pub. L. 100-50, Sec. 10(o)(1), (2)(C), (q), in
    introductory provisions, struck out "and interest" after first
    reference to "principal", and substituted "pursuant to paragraph
    (1) of this subsection" for "under sections 1077(a)(2)(C)(i) and
    1078(b)(1)(M)(i) of this title", and, in subpar. (A), inserted
    "monthly or" before "quarterly".
      Subsec. (d)(1). Pub. L. 100-50, Sec. 10(r)(1)(A), inserted "at
    any time" after "eligible lender may" in first sentence,
    substituted "the consolidated loan is obtained by a borrower who is
    electing to obtain variable interest under paragraph (2) or (3)"
    for "the borrower complies with the requirements of paragraph (2)"
    in second sentence, and inserted "(if required by them)" after
    "shall be reported" in third sentence.
      Subsec. (d)(2). Pub. L. 100-50, Sec. 10(r)(1)(B), inserted "under
    this section before July 1, 1987, or" before "under this section"
    and substituted "to reissue a loan or loans" for "to reissue a
    loan" and "reissuing such loan or loans" for "reissuing such loan".
      Subsec. (d)(5). Pub. L. 100-50, Sec. 10(r)(1)(C), substituted
    "October 1, 1987" for "January 1, 1987" and, in subpar. (B),
    inserted "and of the practical consequences of such options in
    terms of interest rates and monthly and total payments for a set of
    loan examples" before semicolon at end.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by section 416(a)(2) of Pub. L. 105-244 applicable with
    respect to any loan made, insured, or guaranteed under this part
    for which the first disbursement is made on or after Oct. 1, 1998,
    and before July 1, 2003, except that such amendment is applicable
    with respect to any loan made under section 1078-3 of this title
    for which application is received by an eligible lender on or after
    Oct. 1, 1998, and before July 1, 2003, see section 416(c) of Pub.
    L. 105-244, set out as a note under section 1077a of this title.
      Amendment by section 419 of Pub. L. 105-244 effective Oct. 1,
    1998, except as otherwise provided in Pub. L. 105-244, see section
    3 of Pub. L. 105-244, set out as a note under section 1001 of this
    title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Section 4109(c) of Pub. L. 103-66 provided that: "The amendments
    made by this section [amending this section and section 1078-7 of
    this title] shall be effective with respect to loans for which the
    first disbursement is made on or after October 1, 1993."

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 effective July 23, 1992, except that
    changes made in subsec. (b), relating to annual and aggregate loan
    limits, are applicable with respect to loans for which first
    disbursement is made on or after July 1, 1993, changes made in
    subsec. (a) with respect to use of credit histories are applicable
    with respect to loans for which first disbursement is made on or
    after July 1, 1993, and subsec. (c), as added by Pub. L. 102-325,
    relating to disbursement of Federal PLUS Loans, is applicable with
    respect to loans for which first disbursement is made on or after
    Oct. 1, 1992, see section 432 of Pub. L. 102-325, set out as a note
    under section 1078 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.

      AMENDMENT OF NOTE OR OTHER WRITTEN EVIDENCE OF LOAN BY ELIGIBLE
      LENDER AT REQUEST OF BORROWER; CIRCUMSTANCES; DENIAL OF REQUEST
      Section 10(r)(2) of Pub. L. 100-50 provided that: "An eligible
    lender who has refinanced a loan or loans under section 428A(d)
    [former 20 U.S.C. 1078-1(d)] or 428B(d) [20 U.S.C. 1078-2(d)]
    between the date of enactment of the Higher Education Amendments of
    1986 [Oct. 17, 1986] and July 1, 1987, may, at the request of a
    borrower or with the written consent of the borrower, amend the
    note or other written evidence of loan as necessary to comply with
    the requirements of such sections and section 427A(c)(4) [20 U.S.C.
    1077a(c)(4)] as amended by this Act. Any borrower who is denied
    such a request shall be treated as eligible to obtain a loan from
    another lender under section 428A(d)(3) or 428B(d)(3), as
    applicable, for the purposes of discharging the loan from the
    original lender, and a borrower exercising this option shall not be
    subject to an additional insurance fee under section 428A(d)(3)(C)
    or 428B(d)(3)(C)."

-End-



-CITE-
    20 USC Sec. 1078-3                                          01/03/2007

-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. 1078-3. Federal consolidation loans

-STATUTE-
    (a) Agreements with eligible lenders
      (1) Agreement required for insurance coverage
        For the purpose of providing loans to eligible borrowers for
      consolidation of their obligations with respect to eligible
      student loans, the Secretary or a guaranty agency shall enter
      into agreements in accordance with subsection (b) of this section
      with the following eligible lenders:
          (A) the Student Loan Marketing Association or the Holding
        Company of the Student Loan Marketing Association, including
        any subsidiary of the Holding Company, created pursuant to
        section 1087-3 of this title;
          (B) State agencies described in subparagraphs (D) and (F) of
        section 1085(d)(1) of this title; and
          (C) other eligible lenders described in subparagraphs (A),
        (B), (C), (E), and (J) of such section.
      (2) Insurance coverage of consolidation loans
        Except as provided in section 1079(e) of this title, no
      contract of insurance under this part shall apply to a
      consolidation loan unless such loan is made under an agreement
      pursuant to this section and is covered by a certificate issued
      in accordance with subsection (b)(2) of this section. Loans
      covered by such a certificate that is issued by a guaranty agency
      shall be considered to be insured loans for the purposes of
      reimbursements under section 1078(c) of this title, but no
      payment shall be made with respect to such loans under section
      1078(f) of this title to any such agency.
      (3) Definition of eligible borrower
        (A) For the purpose of this section, the term "eligible
      borrower" means a borrower who - 
          (i) is not subject to a judgment secured through litigation
        with respect to a loan under this subchapter and part C of
        subchapter I of chapter 34 of title 42 or to an order for wage
        garnishment under section 1095a of this title; and
          (ii) at the time of application for a consolidation loan - 
            (I) is in repayment status as determined under section
          1078(b)(7)(A) of this title;
            (II) is in a grace period preceding repayment; or
            (III) is a defaulted borrower who has made arrangements to
          repay the obligation on the defaulted loans satisfactory to
          the holders of the defaulted loans.

        (B)(i) (!1) An individual's status as an eligible borrower
      under this section or under section 1087e(g) of this title
      terminates under both sections upon receipt of a consolidation
      loan under this section or under section 1087e(g) of this title,
      except that - 

          (I) an individual who receives eligible student loans after
        the date of receipt of the consolidation loan may receive a
        subsequent consolidation loan;
          (II) loans received prior to the date of the consolidation
        loan may be added during the 180-day period following the
        making of the consolidation loan;
          (III) loans received following the making of the
        consolidation loan may be added during the 180-day period
        following the making of the consolidation loan;
          (IV) loans received prior to the date of the first
        consolidation loan may be added to a subsequent consolidation
        loan; and
          (V) an individual may obtain a subsequent consolidation loan
        under section 1087e(g) of this title only for the purposes of
        obtaining an income contingent repayment plan, and only if the
        loan has been submitted to the guaranty agency for default
        aversion.
      (4) "Eligible student loans" defined
        For the purpose of paragraph (1), the term "eligible student
      loans" means loans - 
          (A) made, insured, or guaranteed under this part, including
        loans on which the borrower has defaulted (but has made
        arrangements to repay the obligation on the defaulted loans
        satisfactory to the Secretary or guaranty agency, whichever
        insured the loans);
          (B) made under part D of this subchapter;
          (C) made under part C of this subchapter;
          (D) made under subpart II of part A of title VII of the
        Public Health Service Act [42 U.S.C. 292q et seq.]; or
          (E) made under subpart II of part B of title VIII of the
        Public Health Service Act [42 U.S.C. 297a et seq.].
    (b) Contents of agreements, certificates of insurance, and loan
      notes
      (1) Agreements with lenders
        Any lender described in subparagraph (A), (B), or (C) of
      subsection (a)(1) of this section who wishes to make
      consolidation loans under this section shall enter into an
      agreement with the Secretary or a guaranty agency which provides -
       
          (A) that, in the case of all lenders described in subsection
        (a)(1) of this section, the lender will make a consolidation
        loan to an eligible borrower (on request of that borrower) only
        if the borrower certifies that the borrower has no other
        application pending for a loan under this section;
          (B) that each consolidation loan made by the lender will bear
        interest, and be subject to repayment, in accordance with
        subsection (c) of this section;
          (C) that each consolidation loan will be made,
        notwithstanding any other provision of this part limiting the
        annual or aggregate principal amount for all insured loans made
        to a borrower, in an amount (i) which is not less than the
        minimum amount required for eligibility of the borrower under
        subsection (a)(3) of this section, and (ii) which is equal to
        the sum of the unpaid principal and accrued unpaid interest and
        late charges of all eligible student loans received by the
        eligible borrower which are selected by the borrower for
        consolidation;
          (D) that the proceeds of each consolidation loan will be paid
        by the lender to the holder or holders of the loans so selected
        to discharge the liability on such loans;
          (E) that the lender shall offer an income-sensitive repayment
        schedule, established by the lender in accordance with the
        regulations promulgated by the Secretary, to the borrower of
        any consolidation loan made by the lender on or after July 1,
        1994; and
          (F) such other terms and conditions as the Secretary or the
        guaranty agency may specifically require of the lender to carry
        out this section.
      (2) Issuance of certificate of comprehensive insurance coverage
        The Secretary shall issue a certificate of comprehensive
      insurance coverage under section 1079(b) of this title to a
      lender which has entered into an agreement with the Secretary
      under paragraph (1) of this subsection. The guaranty agency may
      issue a certificate of comprehensive insurance coverage to a
      lender with which it has an agreement under such paragraph. The
      Secretary shall not issue a certificate to a lender described in
      subparagraph (B) or (C) of subsection (a)(1) of this section
      unless the Secretary determines that such lender has first
      applied to, and has been denied a certificate of insurance by,
      the guaranty agency which insures the preponderance of its loans
      (by value).
      (3) Contents of certificate
        A certificate issued under paragraph (2) shall, at a minimum,
      provide - 
          (A) that all consolidation loans made by such lender in
        conformity with the requirements of this section will be
        insured by the Secretary or the guaranty agency (whichever is
        applicable) against loss of principal and interest;
          (B) that a consolidation loan will not be insured unless the
        lender has determined to its satisfaction, in accordance with
        reasonable and prudent business practices, for each loan being
        consolidated - 
            (i) that the loan is a legal, valid, and binding obligation
          of the borrower;
            (ii) that each such loan was made and serviced in
          compliance with applicable laws and regulations; and
            (iii) in the case of loans under this part, that the
          insurance on such loan is in full force and effect;

          (C) the effective date and expiration date of the
        certificate;
          (D) the aggregate amount to which the certificate applies;
          (E) the reporting requirements of the Secretary on the lender
        and an identification of the office of the Department of
        Education or of the guaranty agency which will process claims
        and perform other related administrative functions;
          (F) the alternative repayment terms which will be offered to
        borrowers by the lender;
          (G) that, if the lender prior to the expiration of the
        certificate no longer proposes to make consolidation loans, the
        lender will so notify the issuer of the certificate in order
        that the certificate may be terminated (without affecting the
        insurance on any consolidation loan made prior to such
        termination); and
          (H) the terms upon which the issuer of the certificate may
        limit, suspend, or terminate the lender's authority to make
        consolidation loans under the certificate (without affecting
        the insurance on any consolidation loan made prior to such
        limitation, suspension, or termination).
      (4) Terms and conditions of loans
        A consolidation loan made pursuant to this section shall be
      insurable by the Secretary or a guaranty agency pursuant to
      paragraph (2) only if the loan is made to an eligible borrower
      who has agreed to notify the holder of the loan promptly
      concerning any change of address and the loan is evidenced by a
      note or other written agreement which - 
          (A) is made without security and without endorsement, except
        that if the borrower is a minor and such note or other written
        agreement executed by him or her would not, under applicable
        law, create a binding obligation, endorsement may be required;
          (B) provides for the payment of interest and the repayment of
        principal in accordance with subsection (c) of this section;
          (C)(i) provides that periodic installments of principal need
        not be paid, but interest shall accrue and be paid in
        accordance with clause (ii), during any period for which the
        borrower would be eligible for a deferral under section
        1078(b)(1)(M) of this title, and that any such period shall not
        be included in determining the repayment schedule pursuant to
        subsection (c)(2) of this section; and
          (ii) provides that interest shall accrue and be paid during
        any such period - 
            (I) by the Secretary, in the case of a consolidation loan
          for which the application is received by an eligible lender
          before November 13, 1997, that consolidated only Federal
          Stafford Loans for which the student borrower received an
          interest subsidy under section 1078 of this title;
            (II) by the Secretary, in the case of a consolidation loan
          for which the application is received by an eligible lender
          on or after November 13, 1997, except that the Secretary
          shall pay such interest only on that portion of the loan that
          repays Federal Stafford Loans for which the student borrower
          received an interest subsidy under section 1078 of this title
          or Federal Direct Stafford Loans for which the borrower
          received an interest subsidy under section 1087e of this
          title; or
            (III) by the borrower, or capitalized, in the case of a
          consolidation loan other than a loan described in subclause
          (I) or (II);

          (D) entitles the borrower to accelerate without penalty
        repayment of the whole or any part of the loan; and
          (E)(i) contains a notice of the system of disclosure
        concerning such loan to credit bureau organizations under
        section 1080a of this title, and (ii) provides that the lender
        on request of the borrower will provide information on the
        repayment status of the note to such organizations.
      (5) Direct loans
        In the event that a borrower is unable to obtain a
      consolidation loan from a lender with an agreement under
      subsection (a)(1), or is unable to obtain a consolidation loan
      with income-sensitive repayment terms acceptable to the borrower
      from such a lender, the Secretary shall offer any such borrower
      who applies for it, a Federal Direct Consolidation loan. Such
      direct consolidation loan shall, as requested by the borrower, be
      repaid either pursuant to income contingent repayment under part
      C of this subchapter or pursuant to any other repayment provision
      under this section. The Secretary shall not offer such loans if,
      in the Secretary's judgment, the Department of Education does not
      have the necessary origination and servicing arrangements in
      place for such loans.
      (6) Nondiscrimination in loan consolidation
        An eligible lender that makes consolidation loans under this
      section shall not discriminate against any borrower seeking such
      a loan - 
          (A) based on the number or type of eligible student loans the
        borrower seeks to consolidate, except that a lender is not
        required to consolidate loans described in subparagraph (D) or
        (E) of subsection (a)(4) of this section or subsection
        (d)(1)(C)(ii) of this section;
          (B) based on the type or category of institution of higher
        education that the borrower attended;
          (C) based on the interest rate to be charged to the borrower
        with respect to the consolidation loan; or
          (D) with respect to the types of repayment schedules offered
        to such borrower.
    (c) Payment of principal and interest
      (1) Interest rate
        (A) Notwithstanding subparagraphs (B) and (C), with respect to
      any loan made under this section for which the application is
      received by an eligible lender - 
          (i) on or after October 1, 1998, and before July 1, 2006, the
        applicable interest rate shall be determined under section
        1077a(k)(4) of this title; or
          (ii) on or after July 1, 2006, the applicable interest rate
        shall be determined under section 1077a(l)(3) of this title.

        (B) A consolidation loan made before July 1, 1994, shall bear
      interest at an annual rate on the unpaid principal balance of the
      loan that is equal to the greater of - 
          (i) the weighted average of the interest rates on the loans
        consolidated, rounded to the nearest whole percent; or
          (ii) 9 percent.

        (C) A consolidation loan made on or after July 1, 1994, shall
      bear interest at an annual rate on the unpaid principal balance
      of the loan that is equal to the weighted average of the interest
      rates on the loans consolidated, rounded upward to the nearest
      whole percent.
        (D) A consolidation loan for which the application is received
      by an eligible lender on or after November 13, 1997, and before
      October 1, 1998, shall bear interest at an annual rate on the
      unpaid principal balance of the loan that is equal to the rate
      specified in section 1077a(f) of this title, except that the
      eligible lender may continue to calculate interest on such a loan
      at the rate previously in effect and defer, until not later than
      April 1, 1998, the recalculation of the interest on such a loan
      at the rate required by this subparagraph if the recalculation is
      applied retroactively to the date on which the loan is made.
      (2) Repayment schedules
        (A) Notwithstanding any other provision of this part, to the
      extent authorized by its certificate of insurance under
      subsection (b)(2)(F) of this section and approved by the issuer
      of such certificate, the lender of a consolidation loan shall
      establish repayment terms as will promote the objectives of this
      section, which shall include the establishment of graduated or
      income-sensitive repayment schedules, established by the lender
      in accordance with the regulations of the Secretary. Except as
      required by such income-sensitive repayment schedules, or by the
      terms of repayment pursuant to income contingent repayment
      offered by the Secretary under subsection (b)(5) of this section,
      such repayment terms shall require that if the sum of the
      consolidation loan and the amount outstanding on other student
      loans to the individual - 
          (i) is less than $7,500, then such consolidation loan shall
        be repaid in not more than 10 years;
          (ii) is equal to or greater than $7,500 but less than
        $10,000, then such consolidation loan shall be repaid in not
        more than 12 years;
          (iii) is equal to or greater than $10,000 but less than
        $20,000, then such consolidation loan shall be repaid in not
        more than 15 years;
          (iv) is equal to or greater than $20,000 but less than
        $40,000, then such consolidation loan shall be repaid in not
        more than 20 years;
          (v) is equal to or greater than $40,000 but less than
        $60,000, then such consolidation loan shall be repaid in not
        more than 25 years; or
          (vi) is equal to or greater than $60,000, then such
        consolidation loan shall be repaid in not more than 30 years.

        (B) The amount outstanding on other student loans which may be
      counted for the purpose of subparagraph (A) may not exceed the
      amount of the consolidation loan.
      (3) Additional repayment requirements
        Notwithstanding paragraph (2) - 
          (A) a repayment schedule established with respect to a
        consolidation loan shall require that the minimum installment
        payment be an amount equal to not less than the accrued unpaid
        interest; and
          (B) except as required by the terms of repayment pursuant to
        income contingent repayment offered by the Secretary under
        subsection (b)(5) of this section, the lender of a
        consolidation loan may, with respect to repayment on the loan,
        when the amount of a monthly or other similar payment on the
        loan is not a multiple of $5, round the payment to the next
        highest whole dollar amount that is a multiple of $5.
      (4) Commencement of repayment
        Repayment of a consolidation loan shall commence within 60 days
      after all holders have, pursuant to subsection (b)(1)(D) of this
      section, discharged the liability of the borrower on the loans
      selected for consolidation.
      (5) Insurance premiums prohibited
        No insurance premium shall be charged to the borrower on any
      consolidation loan, and no insurance premium shall be payable by
      the lender to the Secretary with respect to any such loan, but a
      fee may be payable by the lender to the guaranty agency to cover
      the costs of increased or extended liability with respect to such
      loan.
    (d) Special program authorized
      (1) General rule and definition of eligible student loan
        (A) In general
          Subject to the provisions of this subsection, the Secretary
        or a guaranty agency shall enter into agreements with eligible
        lenders described in subparagraphs (A), (B), and (C) of
        subsection (a)(1) of this section for the consolidation of
        eligible student loans.
        (B) Applicability rule
          Unless otherwise provided in this subsection, the agreements
        entered into under subparagraph (A) and the loans made under
        such agreements for the consolidation of eligible student loans
        under this subsection shall have the same terms, conditions,
        and benefits as all other agreements and loans made under this
        section.
        (C) "Eligible student loans" defined
          For the purpose of this subsection, the term "eligible
        student loans" means loans - 
            (i) of the type described in subparagraphs (A), (B), and
          (C) of subsection (a)(4) of this section; and
            (ii) made under subpart I of part A of title VII of the
          Public Health Service Act [42 U.S.C. 292 et seq.].
      (2) Interest rate rule
        (A) In general
          The portion of each consolidated loan that is attributable to
        an eligible student loan described in paragraph (1)(C)(ii)
        shall bear interest at a rate not to exceed the rate determined
        under subparagraph (B).
        (B) Determination of the maximum interest rate
          For the 12-month period beginning after July 1, 1992, and for
        each 12-month period thereafter, beginning on July 1 and ending
        on June 30, the interest rate applicable under subparagraph (A)
        shall be equal to the average of the bond equivalent rates of
        the 91-day Treasury bills auctioned for the quarter prior to
        July 1, for each 12-month period for which the determination is
        made, plus 3 percent.
        (C) Publication of maximum interest rate
          The Secretary shall determine the applicable rate of interest
        under subparagraph (B) after consultation with the Secretary of
        the Treasury and shall publish such rate in the Federal
        Register as soon as practicable after the date of such
        determination.
      (3) Special rules
        (A) No special allowance rule
          No special allowance under section 1087-1 of this title shall
        be paid with respect to the portion of any consolidated loan
        under this subsection that is attributable to any loan
        described in paragraph (1)(C)(ii).
        (B) No interest subsidy rule
          No interest subsidy under section 1078(a) of this title shall
        be paid on behalf of any eligible borrower for any portion of a
        consolidated loan under this subsection that is attributable to
        any loan described in paragraph (1)(C)(ii).
        (C) Additional reserve rule
          Notwithstanding any other provision of this chapter,
        additional reserves shall not be required for any guaranty
        agency with respect to a loan made under this subsection.
        (D) Insurance rule
          Any insurance premium paid by the borrower under subpart I of
        part A of title VII of the Public Health Service Act [42 U.S.C.
        292 et seq.] with respect to a loan made under that subpart and
        consolidated under this subsection shall be retained by the
        student loan insurance fund established under section 710 of
        the Public Health Service Act [42 U.S.C. 292i].
      (4) Regulations
        The Secretary is authorized to promulgate such regulations as
      may be necessary to facilitate carrying out the provisions of
      this subsection.
    (e) Termination of authority
      The authority to make loans under this section expires at the
    close of September 30, 2012. Nothing in this section shall be
    construed to authorize the Secretary to promulgate rules or
    regulations governing the terms or conditions of the agreements and
    certificates under subsection (b) of this section. Loans made under
    this section which are insured by the Secretary shall be considered
    to be new loans made to students for the purpose of section 1074(a)
    of this title.
    (f) Interest payment rebate fee
      (1) In general
        For any month beginning on or after October 1, 1993, each
      holder of a consolidation loan under this section for which the
      first disbursement was made on or after October 1, 1993, shall
      pay to the Secretary, on a monthly basis and in such manner as
      the Secretary shall prescribe, a rebate fee calculated on an
      annual basis equal to 1.05 percent of the principal plus accrued
      unpaid interest on such loan.
      (2) Special rule
        For consolidation loans based on applications received during
      the period from October 1, 1998 through January 31, 1999,
      inclusive, the rebate described in paragraph (1) shall be equal
      to 0.62 percent of the principal plus accrued unpaid interest on
      such loan.
      (3) Deposit
        The Secretary shall deposit all fees collected pursuant to
      subsection (a) of this section into the insurance fund
      established in section 1081 of this title.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 428C, as added Pub. L. 99-498,
    title IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1388; amended Pub.
    L. 100-50, Sec. 10(s), June 3, 1987, 101 Stat. 345; Pub. L. 102-
    325, title IV, Sec. 419, July 23, 1992, 106 Stat. 532; Pub. L. 102-
    408, title III, Sec. 306(a), (b), Oct. 13, 1992, 106 Stat. 2084,
    2086; Pub. L. 103-66, title IV, Secs. 4046(a), (b)(2), 4106(a),
    Aug. 10, 1993, 107 Stat. 360, 363, 368; Pub. L. 103-208, Sec.
    2(c)(33)-(37), Dec. 20, 1993, 107 Stat. 2466; Pub. L. 103-382,
    title III, Sec. 356, Oct. 20, 1994, 108 Stat. 3967; Pub. L. 104-
    208, div. A, title I, Sec. 101(e) [title VI, Sec.
    602(b)(1)(A)(ii)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-283;
    Pub. L. 105-33, title VI, Sec. 6104(3), Aug. 5, 1997, 111 Stat.
    652; Pub. L. 105-78, title VI, Sec. 609(b)-(e), Nov. 13, 1997, 111
    Stat. 1522, 1523; Pub. L. 105-244, title IV, Secs. 416(b)(2), 420,
    Oct. 7, 1998, 112 Stat. 1682, 1695; Pub. L. 107-139, Sec. 1(a)(2),
    Feb. 8, 2002, 116 Stat. 8; Pub. L. 109-171, title VIII, Secs.
    8004(b)(3), 8009(a), (b)(2), (c), Feb. 8, 2006, 120 Stat. 158, 163,
    164; Pub. L. 109-234, title VII, Sec. 7015(a), (c), (d), June 15,
    2006, 120 Stat. 485.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Public Health Service Act, referred to in subsecs. (a)(4)(D),
    (E) and (d)(1)(C)(ii), (3)(D), is act July 1, 1944, ch. 373, 58
    Stat. 682, as amended. Subparts I and II of part A of title VII of
    the Act are classified generally to subpart I (Sec. 292 et seq.)
    and subpart II (Sec. 292q et seq.), respectively, of part A of
    subchapter V of chapter 6A of Title 42, The Public Health and
    Welfare. Subpart II of part B of title VIII of the Act, which was
    classified generally to subpart II (Sec. 297a et seq.) of part B of
    subchapter VI of chapter 6A of Title 42, was redesignated as part E
    of subchapter VI of chapter 6A of Title 42, by Pub. L. 105-392,
    title I, Sec. 123(2), Nov. 13, 1998, 112 Stat. 3562. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 201 of Title 42 and Tables.
      This chapter, referred to in subsec. (d)(3)(C), was in the
    original "this Act", meaning Pub. L. 89-329, as amended, known as
    the Higher Education Act of 1965. For complete classification of
    this Act to the Code, see Short Title note set out under section
    1001 of this title and Tables.

-COD-
                               CODIFICATION                           
      Amendments by section 2(c)(33), (36) of Pub. L. 103-208 (which
    were effective as if included in Pub. L. 102-325) were executed to
    this section as amended by Pub. L. 102-325 and Pub. L. 103-66, to
    reflect the probable intent of Congress.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1078-3, Pub. L. 89-329, title IV, Sec. 428C, as
    added Pub. L. 99-272, title XVI, Sec. 16017(a), Apr. 7, 1986, 100
    Stat. 343, related to consolidation loans, prior to the general
    revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      2006 - Subsec. (a)(3)(A)(ii)(I). Pub. L. 109-171, Sec.
    8009(b)(2), inserted "as determined under section 1078(b)(7)(A) of
    this title" after "repayment status".
      Subsec. (a)(3)(B)(i). Pub. L. 109-171, Sec. 8009(a)(1)(A), (B),
    substituted "under this section or under section 1087e(g) of this
    title terminates under both sections upon receipt of a
    consolidation loan under this section or under section 1087e(g) of
    this title" for "under this section terminates upon receipt of a
    consolidation loan under this section".
      Subsec. (a)(3)(B)(i)(V). Pub. L. 109-171, Sec. 8009(a)(1)(C)-(E),
    added subcl. (V).
      Subsec. (a)(3)(C). Pub. L. 109-171, Sec. 8009(c), struck out
    subpar. (C), which read as follows:
      "(C)(i) A married couple, each of whom has eligible student
    loans, may be treated as if such couple were an individual
    borrowing under subparagraphs (A) and (B) if such couple agrees to
    be held jointly and severally liable for the repayment of a
    consolidation loan, without regard to the amounts of the respective
    loan obligations that are to be consolidated, and without regard to
    any subsequent change that may occur in such couple's marital
    status.
      "(ii) Only one spouse in a married couple applying for a
    consolidation loan under this subparagraph need meet any of the
    requirements of subsection (b) of this section, except that each
    spouse shall - 
        "(I) individually make the initial certification that no other
      application is pending in accordance with subsection (b)(1)(A) of
      this section; and
        "(II) agree to notify the holder concerning any change of
      address in accordance with subsection (b)(4) of this section."
      Subsec. (b)(1)(A). Pub. L. 109-234, Sec. 7015(a), struck out "and
    (i) the lender holds an outstanding loan of that borrower which is
    selected by the borrower for consolidation under this section,
    except that this clause shall not apply in the case of a borrower
    with multiple holders of loans under this part, or (ii) the
    borrower certifies that the borrower has sought and has been unable
    to obtain a consolidation loan with income-sensitive repayment
    terms from the holders of the outstanding loans of that borrower
    (which are so selected for consolidation)" after "loan under this
    section".
      Subsec. (b)(5). Pub. L. 109-234, Sec. 7015(c), reenacted heading
    without change and substituted in text "In the event that a
    borrower is unable to obtain a consolidation loan from a lender
    with an agreement under subsection (a)(1), or is unable to obtain a
    consolidation loan with income-sensitive repayment terms acceptable
    to the borrower from such a lender, the Secretary shall offer any
    such borrower who applies for it, a Federal Direct Consolidation
    loan. Such direct consolidation loan" for "In the event that a
    borrower is unable to obtain a consolidation loan from a lender
    with an agreement under subsection (a)(1) of this section, or is
    unable to obtain a consolidation loan with income-sensitive
    repayment terms acceptable to the borrower from such a lender, the
    Secretary shall offer any such borrower who applies for it, a
    direct consolidation loan. Such direct consolidation loan".
      Pub. L. 109-171, Sec. 8009(a)(2), which directed substitution of
    "In the event that a lender with an agreement under subsection
    (a)(1) of this section denies a consolidation loan application
    submitted to the lender by an eligible borrower under this section,
    or denies an application submitted to the lender by such a borrower
    for a consolidation loan with income-sensitive repayment terms, the
    Secretary shall offer any such borrower who applies for it, a
    Federal Direct Consolidation loan. The Secretary shall offer such a
    loan to a borrower who has defaulted, for the purpose of resolving
    the default." for first sentence, was repealed by Pub. L. 109-234,
    Sec. 7015(d). See Effective Date of 2006 Amendment note below.
      Subsec. (e). Pub. L. 109-171, Sec. 8004(b)(3), substituted "2012"
    for "2004".
      2002 - Subsec. (c)(1)(A). Pub. L. 107-139 amended subpar. (A)
    generally. Prior to amendment, subpar. (A) read as follows:
    "Notwithstanding subparagraphs (B) and (C), with respect to any
    loan made under this section for which the application is received
    by an eligible lender on or after October 1, 1998, and before July
    1, 2003, the applicable interest rate shall be determined under
    section 1077a(k)(4) of this title."
      1998 - Subsec. (a)(3). Pub. L. 105-244, Sec. 420(a), amended
    heading, added subpars. (A) and (B), and struck out former subpars.
    (A) and (B) which defined the term "eligible borrower", provided
    for termination of individual's status as an eligible borrower, and
    provided for counting loans against certain limitations on
    aggregate indebtedness.
      Subsec. (a)(4)(C). Pub. L. 105-244, Sec. 420(b), added subpar.
    (C) and struck out former subpar. (C) which read as follows: "made
    under part C of this subchapter, except that loans made under such
    part shall be eligible student loans only for consolidation loans
    for which the application is received by an eligible lender during
    the period beginning on November 13, 1997, and ending on October 1,
    1998;".
      Subsec. (b)(1)(A)(i). Pub. L. 105-244, Sec. 420(c)(1), inserted
    "except that this clause shall not apply in the case of a borrower
    with multiple holders of loans under this part," after "under this
    section,".
      Subsec. (b)(4)(C)(ii). Pub. L. 105-244, Sec. 420(c)(2), inserted
    "during any such period" after "and be paid" in introductory
    provisions and struck out ", or on or after October 1, 1998,"
    before "that consolidated" in subcl. (I) and "and before October 1,
    1998," before "except that" in subcl. (II).
      Subsec. (b)(6)(A). Pub. L. 105-244, Sec. 420(c)(3), inserted
    before semicolon at end ", except that a lender is not required to
    consolidate loans described in subparagraph (D) or (E) of
    subsection (a)(4) of this section or subsection (d)(1)(C)(ii) of
    this section".
      Subsec. (c)(1). Pub. L. 105-244, Sec. 420(b)(2), amended heading,
    added subpar. (A), and struck out former subpar. (A) which read as
    follows: "Consolidation loans made under this section shall bear
    interest at rates determined under subparagraph (B), (C), or (D).
    For the purposes of payment of special allowances under section
    1087-1(b)(2) of this title, the interest rate required by this
    subsection is the applicable interest rate with respect to a
    consolidation loan."
      Subsec. (e). Pub. L. 105-244, Sec. 420(d), substituted "September
    30, 2004" for "September 30, 2002".
      Subsec. (f)(2), (3). Pub. L. 105-244, Sec. 420(e), added par. (2)
    and redesignated former par. (2) as (3).
      1997 - Subsec. (a)(4)(C) to (E). Pub. L. 105-78, Sec. 609(b),
    added subpar. (C) and redesignated former subpars. (C) and (D) as
    (D) and (E), respectively.
      Subsec. (b)(4)(C)(ii)(I). Pub. L. 105-78, Sec. 609(c)(1), (2),
    inserted "for which the application is received by an eligible
    lender before November 13, 1997, or on or after October 1, 1998,"
    after "consolidation loan" and struck out "or" at end.
      Subsec. (b)(4)(C)(ii)(II), (III). Pub. L. 105-78, Sec. 609(c)(3)-
    (5), added subcl. (II) and redesignated former subcl. (II) as
    (III) and inserted "or (II)" before semicolon at end.
      Subsec. (b)(6). Pub. L. 105-78, Sec. 609(d), added par. (6).
      Subsec. (c)(1)(A). Pub. L. 105-78, Sec. 609(e)(1), substituted
    "subparagraph (B), (C), or (D)" for "subparagraph (B) or (D)".
      Subsec. (c)(1)(D). Pub. L. 105-78, Sec. 609(e)(2), added subpar.
    (D).
      Subsec. (e). Pub. L. 105-33 substituted "September 30, 2002." for
    "September 30, 1998."
      1996 - Subsec. (a)(1)(A). Pub. L. 104-208 inserted "or the
    Holding Company of the Student Loan Marketing Association,
    including any subsidiary of the Holding Company, created pursuant
    to section 1087-3 of this title" after "Student Loan Marketing
    Association".
      1994 - Subsec. (a)(4)(D). Pub. L. 103-382 added subpar. (D).
      1993 - Subsec. (a)(3). Pub. L. 103-66, Sec. 4046(a)(1), amended
    heading.
      Subsec. (a)(3)(A). Pub. L. 103-208, Sec. 2(c)(33), substituted
    "defaulted borrower who has made arrangements to repay the
    obligation on the defaulted loans satisfactory to the holders of
    the defaulted loans" for "delinquent or defaulted borrower who will
    reenter repayment through loan consolidation". See Codification
    note above.
      Pub. L. 103-66, Sec. 4046(a)(1), amended subpar. (A) generally.
    Prior to amendment, subpar. (A) read as follows: "For the purpose
    of this section, the term 'eligible borrower' means a borrower who,
    at the time of application for a consolidation loan - 
        "(i) has an outstanding indebtedness on eligible student loans,
      at the time of application for a consolidation loan, of not less
      than $7,500; and
        "(ii) is in repayment status, or in a grace period preceding
      repayment, or is a delinquent or defaulted borrower who will
      reenter repayment through loan consolidation."
      Subsec. (a)(3)(B)(ii). Pub. L. 103-66, Sec. 4046(b)(2), struck
    out at end "Nothing in this section shall be interpreted to
    authorize the Secretary to require lenders, holders, or guarantors
    of consolidated loans to receive, to maintain, or to make reports
    with respect to preexisting records relating to any eligible
    student loan (as defined under paragraph (4)) discharged by a
    borrower in receiving a consolidation loan."
      Subsec. (a)(4)(A). Pub. L. 103-208, Sec. 2(c)(34), struck out
    before semicolon at end ", except for loans made to parent
    borrowers under section 1078-2 of this title as in effect prior to
    October 17, 1986".
      Subsec. (a)(4)(C). Pub. L. 103-208, Sec. 2(c)(35), substituted
    "part A" for "part C" before "of title VII of the Public Health
    Service Act".
      Subsec. (b)(1)(A), (E), (F). Pub. L. 103-66, Sec. 4046(a)(2)(A),
    inserted "with income-sensitive repayment terms" after "obtain a
    consolidation loan" in subpar. (A)(ii), added subpar. (E), and
    redesignated former subpar. (E) as (F).
      Subsec. (b)(4)(C). Pub. L. 103-66, Sec. 4046(a)(2)(B), amended
    subpar. (C) generally. Prior to amendment, subpar. (C) read as
    follows: "provides that periodic installments of principal need not
    be paid, but interest shall accrue and be paid by the Secretary,
    during any period for which the borrower would be eligible for a
    deferral under section 1078(b)(1)(M) of this title, and that any
    such period shall not be included in determining the repayment
    period pursuant to subsection (c)(2) of this section;".
      Subsec. (b)(5). Pub. L. 103-66, Sec. 4046(a)(2)(C), added par.
    (5).
      Subsec. (c)(1)(B), (C). Pub. L. 103-66, Sec. 4046(a)(3)(A),
    amended subpars. (B) and (C) generally. Prior to amendment,
    subpars. (B) and (C) read as follows:
      "(B) Except as provided in subparagraph (C), a consolidation loan
    shall bear interest at an annual rate on the unpaid principal
    balance of the loan which is equal to the weighted average of the
    interest rates on the loans consolidated, rounded to the nearest
    whole percent.
      "(C) A consolidation loan shall bear interest at an annual rate
    on the unpaid principal balance of the loan equal to not less than
    9 percent."
      Subsec. (c)(2)(A). Pub. L. 103-208, Sec. 2(c)(36), inserted
    period at end of cl. (vi). See Codification note above.
      Pub. L. 103-66, Sec. 4046(a)(3)(B)(i), in introductory provisions
    substituted "income-sensitive repayment schedules, established by
    the lender in accordance with the regulations of the Secretary.
    Except as required by such income-sensitive repayment schedules, or
    by the terms of repayment pursuant to income contingent repayment
    offered by the Secretary under subsection (b)(5) of this section,
    such repayment terms" for "income sensitive repayment schedules.
    Such repayment terms", added cl. (i), and redesignated former cls.
    (i) to (v) as (ii) to (vi), respectively.
      Subsec. (c)(2)(B), (C). Pub. L. 103-66, Sec. 4046(a)(3)(B)(ii),
    (iii), redesignated subpar. (C) as (B) and struck out former
    subpar. (B) which read as follows: "Unless a consolidation loan
    under subparagraph (A)(ii) will be used to discharge at least
    $5,000 of loans made under this part, such loan shall be repaid in
    accordance with subparagraph (A)(i)."
      Subsec. (c)(3)(A). Pub. L. 103-208, Sec. 2(c)(37), inserted "be
    an amount" before "equal to".
      Subsec. (c)(3)(B). Pub. L. 103-66, Sec. 4046(a)(3)(C), inserted
    "except as required by the terms of repayment pursuant to income
    contingent repayment offered by the Secretary under subsection
    (b)(5) of this section," before "the lender".
      Subsec. (f). Pub. L. 103-66, Sec. 4106(a), added subsec. (f).
      1992 - Pub. L. 102-325, Sec. 419(a), substituted "Federal
    consolidation" for "Consolidation" in section catchline.
      Subsec. (a)(3)(A)(i). Pub. L. 102-325, Sec. 419(b)(1)(A),
    substituted "$7,500" for "$5,000".
      Subsec. (a)(3)(A)(ii). Pub. L. 102-325, Sec. 419(b)(1)(B),
    amended cl. (ii) generally. Prior to amendment, cl. (ii) read as
    follows: "is in repayment status, or in a grace period preceding
    repayment, and is not delinquent with respect to any required
    payment on such indebtedness by more than 90 days."
      Subsec. (a)(3)(B). Pub. L. 102-325, Sec. 419(c), amended subpar.
    (B) generally. Prior to amendment, subpar. (B) read as follows: "An
    individual's status as an eligible borrower under this section
    terminates upon receipt of a consolidation loan under this section
    except with respect to eligible student loans received after the
    date of receipt of the consolidation loan. Loans made under this
    section shall, to the extent used to discharge loans made under
    this subchapter and part C of subchapter I of chapter 34 of title
    42, be counted against the applicable limitations on aggregate
    indebtedness contained in sections 1075(a)(2), 1078(b)(1)(B), 1078-
    1(b)(2), and 1087dd(a)(2) of this title. Nothing in this
    subparagraph shall be interpreted to authorize the Secretary to
    require lenders, holders, or guarantors of consolidation loans to
    receive, to maintain, or to make reports with respect to pre-
    existing records relating to any eligible student loan (as defined
    under subsection (a)(4) of this section) discharged by a borrower
    in receiving a consolidation loan."
      Subsec. (a)(3)(C). Pub. L. 102-325, Sec. 419(d), added subpar.
    (C).
      Subsec. (a)(4)(A). Pub. L. 102-325, Sec. 419(b)(2), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "made, insured, or guaranteed under this part, except for
    loans made to parent borrowers under section 1078-2 of this title,
    including loans made to parent borrowers under section 1078-2 of
    this title as in effect prior to October 17, 1986;".
      Subsec. (b)(4)(C). Pub. L. 102-325, Sec. 419(e), amended subpar.
    (C) generally. Prior to amendment, subpar. (C) read as follows:
    "provides that periodic installments of principal need not be paid,
    but interest shall accrue and be paid, during any period for which
    the borrower would be eligible for a deferral under clause (i),
    (viii), or (ix) of section 1078(b)(1)(M) of this title, and that
    any such period shall not be included in determining the repayment
    period pursuant to subsection (c)(2) of this section;".
      Subsec. (c)(2)(A). Pub. L. 102-325, Sec. 419(f), substituted
    "which shall include" for "which may include" in first sentence,
    inserted second sentence, and struck out former second sentence
    which read as follows: "Such repayment terms shall require that if
    the sum of the consolidation loan and the amount outstanding on
    other student loans to the individual - 
        "(i) is equal to or greater than $5,000 but less than $7,500,
      then such consolidation loan shall be repaid in not more than 10
      years;
        "(ii) is equal to or greater than $7,500 but less than $10,000,
      then such consolidation loan shall be repaid in not more than 12
      years;
        "(iii) is equal to or greater than $10,000 but less than
      $20,000, then such consolidation loan shall be repaid in not more
      than 15 years;
        "(iv) is equal to or greater than $20,000 but less than
      $45,000, then such consolidation loan shall be repaid in not more
      than 20 years; or
        "(v) is equal to or greater than $45,000, then such
      consolidation loan shall be repaid in not more than 25 years."
      Subsec. (d). Pub. L. 102-408, Sec. 306(a), added subsec. (d).
    Former subsec. (d) redesignated (e).
      Pub. L. 102-325, Sec. 419(g), substituted "September 30, 1998"
    for "September 30, 1992".
      Subsec. (e). Pub. L. 102-408, Sec. 306(b), which directed the
    substitution of "1997" for "1992", could not be executed because
    "1992" did not appear in text subsequent to the amendment by Pub.
    L. 102-325, Sec. 419(g). See above.
      Pub. L. 102-408, Sec. 306(a)(1), redesignated subsec. (d) as
    subsec. (e).
      1987 - Subsec. (a)(1)(C). Pub. L. 100-50, Sec. 10(s)(1), which
    directed the amendment of subpar. (C) by substituting "(C), (E),
    and (J)" for "(C) and (E)", was executed by substituting the new
    language for "(C), and (E)", as the probable intent of Congress.
      Subsec. (a)(3)(A). Pub. L. 100-50, Sec. 10(s)(2), struck out cl.
    (iii) which read as follows: "is not a parent borrower under
    section 1078-2 of this title."
      Subsec. (a)(3)(B). Pub. L. 100-50, Sec. 10(s)(3), substituted
    "eligible student loans received" for "loans received under this
    subchapter and part C of subchapter I of chapter 34 of title 42",
    "under this subchapter and part C of subchapter I of chapter 34 of
    title 42" for "under this part", and ", 1078(b)(1)(B), 1078-
    1(b)(2), and 1087dd(a)(2) of this title" for "and 1078(b)(1)(B) of
    this title", and inserted provision that nothing in subpar. (B)
    should be interpreted to authorize Secretary to require lenders,
    holders, or guarantors of consolidation loans to make reports with
    respect to pre-existing records relating to eligible student loans
    discharged by a borrower in receiving a consolidation loan.
      Subsec. (a)(4)(A). Pub. L. 100-50, Sec. 10(s)(4), inserted
    exception for loans made to parent borrowers under section 1078-2
    of this title.
      Subsec. (b)(1)(C). Pub. L. 100-50, Sec. 10(s)(5), in cl. (i),
    substituted "subsection (a)(3) of this section" for "subsection
    (a)(2) of this section" and, in cl. (ii), substituted "all eligible
    student loans received by the eligible borrower" for "all loans
    received by the eligible borrower under this subchapter and part C
    of subchapter I of chapter 34 of title 42".
      Subsec. (c)(2)(A)(v). Pub. L. 100-50, Sec. 10(s)(6), substituted
    "equal to or greater" for "more" the first time appearing, as the
    probable intent of Congress.
      Subsec. (c)(5). Pub. L. 100-50, Sec. 10(s)(7), inserted ", but a
    fee may be payable by the lender to the guaranty agency to cover
    the costs of increased or extended liability with respect to such
    loan" before period at end.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-234, title VII, Sec. 7015(b), June 15, 2006, 120
    Stat. 485, provided that: "The amendment made by subsection (a)
    [amending this section] shall apply with respect to any loan made
    under section 428C of the Higher Education Act of 1965 (20 U.S.C.
    1078-3) for which the application is received by an eligible lender
    on or after the date of enactment of this Act [June 15, 2006]."
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by section 416(b)(2) of Pub. L. 105-244 applicable with
    respect to any loan made, insured, or guaranteed under this part
    for which the first disbursement is made on or after Oct. 1, 1998,
    and before July 1, 2003, except that such amendment is applicable
    with respect to any loan made under this section for which
    application is received by an eligible lender on or after Oct. 1,
    1998, and before July 1, 2003, see section 416(c) of Pub. L. 105-
    244, set out as a note under section 1077a of this title.
      Amendment by section 420 of Pub. L. 105-244 effective Oct. 1,
    1998, except as otherwise provided in Pub. L. 105-244, see section
    3 of Pub. L. 105-244, set out as a note under section 1001 of this
    title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 101(e) [title VI, Sec. 602(b)(1)(B)] of div. A of Pub. L.
    104-208 provided that: "The amendments made by this paragraph
    [amending this section and section 1085 of this title] shall take
    effect on the reorganization effective date as defined in section
    440(h) of the Higher Education Act of 1965 [20 U.S.C. 1087-3(h)]
    (as added by subsection (a))."

                     EFFECTIVE DATE OF 1993 AMENDMENTS                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.
      Section 4046(c) of Pub. L. 103-66 provided that: "The amendments
    made by this section [amending this section and section 1085 of
    this title] shall take effect on July 1, 1994, except that the
    amendments made by subsection (a)(2)(B) [amending this section]
    shall take effect upon enactment [Aug. 10, 1993]."

                     EFFECTIVE DATE OF 1992 AMENDMENTS                 
      Section 306(c) of Pub. L. 102-408 provided that: "The amendments
    made by this section [amending this section] take effect 60 days
    after the date of enactment of this Act [Oct. 13, 1992]."
      Amendment by Pub. L. 102-325 effective July 23, 1992, except that
    changes made in this section, relating to consolidation loans,
    applicable with respect to loans for which the application is
    received by an eligible lender on or after Jan. 1, 1993, see
    section 432, set out as a note under section 1078 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.

                            PENDING APPLICANTS                        
      Section 609(f) of Pub. L. 105-78 provided that: "The
    consolidation loans authorized by the amendments made by this
    section [amending this section] shall be available notwithstanding
    any pending application by a student for a consolidation loan under
    part D of title IV of the Higher Education Act of 1965 (20 U.S.C.
    1087a et seq.), upon withdrawal of such application by the student
    at any time prior to receipt of such a consolidation loan."

                          COST EVALUATION REPORT                      
      Pub. L. 99-272, title XVI, Sec. 16017(d), Apr. 7, 1986, 100 Stat.
    348, provided that: "The Secretary of Education shall evaluate the
    cost, efficiency, and impact of the consolidation loan program
    established by the amendments made by this section [enacting former
    section 1078-3 of this title and amending former sections 1077,
    1085, 1087-1, and 1087-2 of this title] and shall report to the
    Congress not later than June 30, 1988, on the findings and
    recommendations required by this subsection."

-FOOTNOTE-
    (!1) So in original. No cl. (ii) has been enacted.


-End-



-CITE-
    20 USC Sec. 1078-4                                          01/03/2007

-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. 1078-4. Commingling of funds

-STATUTE-
      Notwithstanding any other provision of this part regarding
    permissible uses of funds from any source, funds received by a
    guaranty agency under any provision of this part may be commingled
    with funds received under any other provision of this part and may
    be used to carry out the purposes of such other provision, except
    that - 
        (1) the total amount expended for the purposes of such other
      provision shall not exceed the amount the guaranty agency would
      otherwise be authorized to expend; and
        (2) the authority to commingle such funds shall not relieve
      such agency of any accounting or auditing obligations under this
      part.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 428D, as added Pub. L. 99-498,
    title IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1393.)

-End-



-CITE-
    20 USC Sec. 1078-5                                          01/03/2007

-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. 1078-5. Repealed.

-MISC1-
    Sec. 1078-5. Repealed. Pub. L. 102-164, title VI, Sec. 605(b)(1),
      Nov. 15, 1991, 105 Stat. 1068.
      Section, Pub. L. 89-329, title IV, Sec. 428E, as added Pub. L. 99-
    498, title IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1393; amended
    Pub. L. 100-50, Sec. 10(t), June 3, 1987, 101 Stat. 345, related to
    State garnishment law requirements.

-End-



-CITE-
    20 USC Sec. 1078-6                                          01/03/2007

-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. 1078-6. Default reduction program

-STATUTE-
    (a) Other repayment incentives
      (1) Sale of loan
        (A) Each guaranty agency shall enter into an agreement with the
      Secretary which shall provide that upon securing 9 payments made
      within 20 days of the due date during 10 consecutive months of
      amounts owed on a loan for which the Secretary has made a payment
      under paragraph (1) of section 1078(c) of this title, the
      guaranty agency (pursuant to an agreement with the Secretary) or
      the Secretary shall, if practicable, sell the loan to an eligible
      lender. Such loan shall not be sold to an eligible lender who has
      been found by the guaranty agency or the Secretary to have
      substantially failed to exercise the due diligence required of
      lenders under this part. Neither the guaranty agency nor the
      Secretary shall demand from a borrower as monthly payment amounts
      referred to in this paragraph more than is reasonable and
      affordable based upon the borrower's total financial
      circumstances.
        (B) An agreement between the guaranty agency and the Secretary
      for purposes of this paragraph shall provide - 
          (i) for the repayment by the agency to the Secretary of 81.5
        percent of the amount of the principal balance outstanding at
        the time of such sale, multiplied by the reinsurance percentage
        in effect when payment under the guaranty agreement was made
        with respect to the loan; and
          (ii) for the reinstatement by the Secretary (I) of the
        obligation to reimburse such agency for the amount expended by
        it in discharge of its insurance obligation under its loan
        insurance program, and (II) of the obligation to pay to the
        holder of such loan a special allowance pursuant to section
        1087-1 of this title.

        (C) A guaranty agency may charge the borrower and retain
      collection costs in an amount not to exceed 18.5 percent of the
      outstanding principal and interest at the time of sale of a loan
      rehabilitated under subparagraph (A).
        (D) A loan which does not meet the requirements of subparagraph
      (A) may also be eligible for sale under this paragraph upon a
      determination that the loan was in default due to clerical or
      data processing error and would not, in the absence of such
      error, be in a delinquent status.
      (2) Use of proceeds of sales
        Amounts received by the Secretary pursuant to the sale of such
      loans by a guaranty agency under paragraph (1) of this subsection
      shall be deducted from the calculations of the amount of
      reimbursement for which the agency is eligible under paragraph
      (1)(B)(ii) of this subsection for the fiscal year in which the
      amount was received, notwithstanding the fact that the default
      occurred in a prior fiscal year.
      (3) Borrower eligibility
        Any borrower whose loan is sold under paragraph (1) shall not
      be precluded by section 1091 of this title from receiving
      additional loans or grants under this subchapter and part C of
      subchapter I of chapter 34 of title 42 (for which he or she is
      otherwise eligible) on the basis of defaulting on the loan prior
      to such loan sale.
      (4) Applicability of general loan conditions
        A loan which is sold under paragraph (1) of this subsection
      shall, so long as the borrower continues to make scheduled
      repayments thereon, be subject to the same terms and conditions
      and qualify for the same benefits and privileges as other loans
      made under this part.
    (b) Satisfactory repayment arrangements to renew eligibility
      Each guaranty agency shall establish a program which allows a
    borrower with a defaulted loan or loans to renew eligibility for
    all title IV student financial assistance (regardless of whether
    the defaulted loan has been sold to an eligible lender) upon the
    borrower's payment of 6 consecutive monthly payments. The guaranty
    agency shall not demand from a borrower as a monthly payment amount
    under this subsection more than is reasonable and affordable based
    upon the borrower's total financial circumstances. A borrower may
    only obtain the benefit of this subsection with respect to renewed
    eligibility once.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 428F, as added Pub. L. 99-498,
    title IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1394; amended Pub.
    L. 100-50, Sec. 10(u), June 3, 1987, 101 Stat. 346; Pub. L. 101-
    239, title II, Sec. 2005(a), Dec. 19, 1989, 103 Stat. 2116; Pub.
    L. 102-325, title IV, Sec. 420, July 23, 1992, 106 Stat. 534; Pub.
    L. 103-208, Sec. 2(c)(38)-(40), Dec. 20, 1993, 107 Stat. 2466; Pub.
    L. 105-244, title IV, Sec. 421, Oct. 7, 1998, 112 Stat. 1696; Pub.
    L. 109-171, title VIII, Sec. 8014(h), Feb. 8, 2006, 120 Stat. 171.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title IV, referred to in subsec. (b), means title IV of the
    Higher Education Act of 1965, Pub. L. 89-329, which is classified
    generally to this subchapter and part C (Sec. 2751 et seq.) of
    subchapter I of chapter 34 of Title 42, The Public Health and
    Welfare. For complete classification of title IV to the Code, see
    Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(1)(A). Pub. L. 109-171, Sec. 8014(h)(1),
    substituted "9 payments made within 20 days of the due date during
    10 consecutive months" for "consecutive payments for 12 months".
      Subsec. (a)(1)(C), (D). Pub. L. 109-171, Sec. 8014(h)(2), (3),
    added subpar. (C) and redesignated former subpar. (C) as (D).
      1998 - Subsec. (b). Pub. L. 105-244 substituted "Satisfactory
    repayment arrangements to renew eligibility" for "Special rule" in
    heading.
      1993 - Subsec. (a)(2). Pub. L. 103-208, Sec. 2(c)(38),
    substituted "paragraph (1) of this subsection" for "this paragraph"
    and "this subsection" for "this section".
      Subsec. (a)(4). Pub. L. 103-208, Sec. 2(c)(39), substituted
    "paragraph (1) of this subsection" for "this paragraph".
      Subsec. (b). Pub. L. 103-208, Sec. 2(c)(40), inserted at end "A
    borrower may only obtain the benefit of this subsection with
    respect to renewed eligibility once."
      1992 - Subsec. (a). Pub. L. 102-325, Sec. 420(1)-(3),
    redesignated subsec. (b) as (a), in par. (1)(A) substituted "Each
    guaranty agency shall enter into an agreement with the Secretary
    which shall provide that upon" for "Upon" and inserted provision at
    end that neither the guaranty agency nor the Secretary demand from
    the borrower as monthly payments more than is reasonable and
    affordable based upon the borrower's total financial circumstances,
    in par. (3) inserted "or grants" after "loans", and struck out
    former subsec. (a) which related to program requirements for the
    default reduction program.
      Subsec. (b). Pub. L. 102-325, Sec. 420(4), added subsec. (b).
    Former subsec. (b) redesignated (a).
      1989 - Pub. L. 101-239 amended section generally, substituting
    provisions relating to default reduction program for former
    provisions relating to rehabilitation of defaulted loans.
      1987 - Subsecs. (b), (c). Pub. L. 100-50 redesignated subsec. (c)
    as (b) and struck out former subsec. (b) which read as follows:
    "The loans which shall be eligible for rehabilitation under this
    section shall be only those loans which are made to borrowers who,
    at the time of default on the loan, are unemployed or
    institutionalized."

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 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 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.

     PUBLICITY THROUGH COMMUNICATIONS MEDIA OF AVAILABILITY OF DEFAULT
                             REDUCTION PROGRAM
      Section 2005(b) of Pub. L. 101-239 provided that: "The Secretary
    of Education shall, from funds available through student loan
    collections, commencing not less than 30 days before the beginning
    of the default reduction program required by the amendment made by
    this section [amending this section], and continuing throughout the
    duration of such program, widely publicize (through various
    communications media) the availability of the default reduction
    program."

-End-



-CITE-
    20 USC Sec. 1078-7                                          01/03/2007

-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. 1078-7. Requirements for disbursement of student loans

-STATUTE-
    (a) Multiple disbursement required
      (1) Two disbursements required
        The proceeds of any loan made, insured, or guaranteed under
      this part that is made for any period of enrollment shall be
      disbursed in 2 or more installments, none of which exceeds one-
      half of the loan.
      (2) Minimum interval required
        The interval between the first and second such installments
      shall be not less than one-half of such period of enrollment,
      except as necessary to permit the second installment to be
      disbursed at the beginning of the second semester, quarter, or
      similar division of such period of enrollment.
      (3) Special rule
        An institution whose cohort default rate (as determined under
      section 1085(m) of this title) for each of the 3 most recent
      fiscal years for which data are available is less than 10 percent
      may disburse any loan made, insured, or guaranteed under this
      part in a single installment for any period of enrollment that is
      not more than 1 semester, 1 trimester, 1 quarter, or 4 months.
      Notwithstanding section 422(d) of the Higher Education Amendments
      of 1998, this paragraph shall be effective beginning on February
      8, 2006.
    (b) Disbursement and endorsement requirements
      (1) First year students
        The first installment of the proceeds of any loan made,
      insured, or guaranteed under this part that is made to a student
      borrower who is entering the first year of a program of
      undergraduate education, and who has not previously obtained a
      loan under this part, shall not (regardless of the amount of such
      loan or the duration of the period of enrollment) be presented by
      the institution to the student for endorsement until 30 days
      after the borrower begins a course of study, but may be delivered
      to the eligible institution prior to the end of that 30-day
      period. An institution whose cohort default rate (as determined
      under section 1085(m) of this title) for each of the three most
      recent fiscal years for which data are available is less than 10
      percent shall be exempt from the requirements of this paragraph.
      Notwithstanding section 422(d) of the Higher Education Amendments
      of 1998, the second sentence of this paragraph shall be effective
      beginning on February 8, 2006.
      (2) Other students
        The proceeds of any loan made, insured, or guaranteed under
      this part that is made to any student other than a student
      described in paragraph (1) shall not be disbursed more than 30
      days prior to the beginning of the period of enrollment for which
      the loan is made.
    (c) Method of multiple disbursement
      Disbursements under subsection (a) of this section - 
        (1) shall be made in accordance with a schedule provided by the
      institution (under section 1078(a)(2)(A)(i)(III) (!1) of this
      title) that complies with the requirements of this section;

        (2) may be made directly by the lender or, in the case of a
      loan under sections 1078 and 1078-1 (!1) of this title, may be
      disbursed pursuant to the escrow provisions of section 1078(i) of
      this title; and
        (3) notwithstanding subsection (a)(2) of this section, may,
      with the permission of the borrower, be disbursed by the lender
      on a weekly or monthly basis, provided that the proceeds of the
      loan are disbursed in substantially equal weekly or monthly
      installments, as the case may be, over the period of enrollment
      for which the loan is made.
    (d) Withholding of second disbursement
      (1) Withdrawing students
        A lender or escrow agent that is informed by the borrower or
      the institution that the borrower has ceased to be enrolled
      before the disbursement of the second or any succeeding
      installment shall withhold such disbursement. Any disbursement
      which is so withheld shall be credited to the borrower's loan and
      treated as a prepayment thereon.
      (2) Students receiving over-awards
        If the sum of a disbursement for any student and the other
      financial aid obtained by such student exceeds the amount of
      assistance for which the student is eligible under this
      subchapter and part C of subchapter I of chapter 34 of title 42,
      the institution such student is attending shall withhold and
      return to the lender or escrow agent the portion (or all) of such
      installment that exceeds such eligible amount, except that
      overawards permitted pursuant to section 2753(b)(4) of title 42
      shall not be construed to be overawards for purposes of this
      paragraph. Any portion (or all) of a disbursement installment
      which is so returned shall be credited to the borrower's loan and
      treated as a prepayment thereon.
    (e) Exclusion of consolidation and foreign study loans
      The provisions of this section shall not apply in the case of a
    loan made under section 1078-3 of this title, or made to a student
    to cover the cost of attendance in a program of study abroad
    approved by the home eligible institution if the home eligible
    institution has a cohort default rate (as calculated under section
    1085(m) of this title) of less than 5 percent.
    (f) Beginning of period of enrollment
      For purposes of this section, a period of enrollment begins on
    the first day that classes begin for the applicable period of
    enrollment.
    (g) Sales prior to disbursement prohibited
      An eligible lender shall not sell or transfer a promissory note
    for any loan made, insured, or guaranteed under this part until the
    final disbursement of such loan has been made, except that the
    prohibition of this subsection shall not apply if - 
        (1) the sale of the loan does not result in a change in the
      identity of the party to whom payments will be made for the loan;
      and
        (2) the first disbursement of such loan has been made.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 428G, as added Pub. L. 101-239,
    title II, Sec. 2004(a), Dec. 19, 1989, 103 Stat. 2115; amended Pub.
    L. 101-508, title III, Sec. 3003(a), Nov. 5, 1990, 104 Stat. 1388-
    26; Pub. L. 102-325, title IV, Sec. 421, July 23, 1992, 106 Stat.
    534; Pub. L. 103-66, title IV, Sec. 4109(b), Aug. 10, 1993, 107
    Stat. 369; Pub. L. 103-208, Sec. 2(c)(41), Dec. 20, 1993, 107 Stat.
    2466; Pub. L. 105-244, title IV, Sec. 422(a)-(c), Oct. 7, 1998, 112
    Stat. 1696; Pub. L. 109-171, title VIII, Sec. 8010, Feb. 8, 2006,
    120 Stat. 164.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 422(d) of the Higher Education Amendments of 1998,
    referred to in subsecs. (a)(3) and (b)(1), is section 422(d) of
    Pub. L. 105-244, set out as an Effective and Termination Dates of
    1998 Amendment note below.
      Section 1078(a)(2)(A)(i)(III) of this title, referred to in
    subsec. (c)(1), was repealed by Pub. L. 105-244, title IV, Sec.
    417(a)(1)(A), Oct. 7, 1998, 112 Stat. 1682. Provisions similar to
    those contained in section 1078(a)(2)(A)(i)(III) are now contained
    in section 1078(a)(2)(A)(i)(II).
      Section 1078-1 of this title, referred to in subsec. (c)(2), was
    repealed by Pub. L. 103-66, title IV, Sec. 4047(b)-(d), Aug. 10,
    1993, 107 Stat. 364, eff. July 1, 1994, except with respect to
    loans provided under that section as it existed prior to Aug. 10,
    1993. Subsequently, a new section 1078-1, relating to voluntary
    flexible agreements with guaranty agencies, was enacted by Pub. L.
    105-244, title IV, Sec. 418, Oct. 7, 1998, 112 Stat. 1691.

-COD-
                               CODIFICATION                           
      Text of subsec. (a)(3) and second sentence of subsec. (b)(1),
    which was temporarily added by Pub. L. 105-244, Sec. 422(a), (b),
    and then omitted, was restored pursuant to amendment by Pub. L. 109-
    171, Sec. 8010(1), (2). See 1998 and 2006 Amendment notes and
    Effective and Termination Dates of 1998 Amendment note below.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(3). Pub. L. 109-171, Sec. 8010(1), inserted
    "Notwithstanding section 422(d) of the Higher Education Amendments
    of 1998, this paragraph shall be effective beginning February 8,
    2006." at end. See Codification note above and Effective and
    Termination Dates of 1998 Amendment note below.
      Subsec. (b)(1). Pub. L. 109-171, Sec. 8010(2), inserted
    "Notwithstanding section 422(d) of the Higher Education Amendments
    of 1998, the second sentence of this paragraph shall be effective
    beginning February 8, 2006." at end. See Codification note above
    and Effective and Termination Dates of 1998 Amendment note below.
      Subsec. (e). Pub. L. 109-171, Sec. 8010(3), struck out ", made to
    a student to cover the cost of attendance at an eligible
    institution outside the United States" after "section 1078-3 of
    this title".
      1998 - Subsec. (a)(3). Pub. L. 105-244, Sec. 422(a), (d),
    temporarily added par. (3) which read as follows: "An institution
    whose cohort default rate (as determined under section 1085(m) of
    this title) for each of the 3 most recent fiscal years for which
    data are available is less than 10 percent may disburse any loan
    made, insured, or guaranteed under this part in a single
    installment for any period of enrollment that is not more than 1
    semester, 1 trimester, 1 quarter, or 4 months." See Codification
    note and 2006 Amendment note above and Effective and Termination
    Dates of 1998 Amendment note below.
      Subsec. (b)(1). Pub. L. 105-244, Sec. 422(b), (d), temporarily
    inserted at end "An institution whose cohort default rate (as
    determined under section 1085(m) of this title) for each of the
    three most recent fiscal years for which data are available is less
    than 10 percent shall be exempt from the requirements of this
    paragraph." See Codification note and 2006 Amendment note above and
    Effective and Termination Dates of 1998 Amendment note below.
      Subsec. (e). Pub. L. 105-244, Sec. 422(c), substituted ", made to
    a student" for "or made to a student" and inserted before the
    period at end ", or made to a student to cover the cost of
    attendance in a program of study abroad approved by the home
    eligible institution if the home eligible institution has a cohort
    default rate (as calculated under section 1085(m) of this title) of
    less than 5 percent".
      1993 - Subsec. (c)(3). Pub. L. 103-208 directed the substitution
    of "disbursed by the lender" for "disbursed" and was executed by
    making the substitution the first place "disbursed" appeared, to
    reflect the probable intent of Congress.
      Subsec. (e). Pub. L. 103-66 substituted "consolidation" for
    "PLUS, consolidation," in heading and "section 1078-3" for "section
    1078-2 or 1078-3" in text.
      1992 - Subsec. (c)(3). Pub. L. 102-325, Sec. 421(a), added par.
    (3).
      Subsec. (d)(2). Pub. L. 102-325, Sec. 421(b), inserted ", except
    that overawards permitted pursuant to section 2753(b)(4) of title
    42 shall not be construed to be overawards for purposes of this
    paragraph" before period at end of first sentence.
      Subsec. (g). Pub. L. 102-325, Sec. 421(c), added subsec. (g).
      1990 - Subsec. (b)(1). Pub. L. 101-508 amended par. (1)
    generally. Prior to amendment, par. (1) read as follows: "The first
    installment of the proceeds of any loan made under section 1078-1
    of this title that is made to a student borrower who has not
    successfully completed the first year of a program of undergraduate
    education shall not (regardless of the amount of such loan or the
    duration of the period of enrollment) be presented by the
    institution to the student for endorsement until - 
        "(A) 30 days after the borrower begins a course of study; and
        "(B) the institution certifies that the borrower continues to
      be enrolled and in attendance at the end of such 30-day period,
      and is maintaining satisfactory progress;
    but may be disbursed to the eligible institution prior to the end
    of such 30-day period."

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

             EFFECTIVE AND TERMINATION DATES OF 1998 AMENDMENT         
      Amendment by section 422(c) of Pub. L. 105-244 effective Oct. 1,
    1998, except as otherwise provided in Pub. L. 105-244, see section
    3 of Pub. L. 105-244, set out as a note under section 1001 of this
    title.
      Pub. L. 105-244, title IV, Sec. 422(d), Oct. 7, 1998, 112 Stat.
    1696, provided that: "The amendments made by subsections (a) and
    (b) [amending this section] shall be effective during the period
    beginning on October 1, 1998, and ending on September 30, 2002."

                     EFFECTIVE DATE OF 1993 AMENDMENTS                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.
      Amendment by Pub. L. 103-66 effective with respect to loans for
    which the first disbursement is made on or after Oct. 1, 1993, see
    section 4109(c) of Pub. L. 103-66, set out as a note under section
    1078-2 of this title.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 3003(b) of Pub. L. 101-508 provided that: "The amendment
    made by this section [amending this section] shall be effective for
    loans made on or after the date of enactment of this Act [Nov. 5,
    1990] to cover the cost of instruction for periods of enrollment
    beginning on or after January 1, 1991."

                              EFFECTIVE DATE                          
      Section applicable with respect to loans made to cover cost of
    instruction for periods of enrollment beginning on or after Jan. 1,
    1990, see section 2004(c) of Pub. L. 101-239, set out as an
    Effective Date of 1989 Amendment note under section 1077 of this
    title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1078-8                                          01/03/2007

-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. 1078-8. Unsubsidized Stafford loans for middle-income
      borrowers

-STATUTE-
    (a) In general
      It is the purpose of this section to authorize insured loans
    under this part for borrowers who do not qualify for Federal
    interest subsidy payments under section 1078 of this title. Except
    as provided in this section, all terms and conditions for Federal
    Stafford loans established under section 1078 of this title shall
    apply to loans made pursuant to this section.
    (b) Eligible borrowers
      Any student meeting the requirements for student eligibility
    under section 1091 of this title (including graduate and
    professional students as defined in regulations promulgated by the
    Secretary) shall be entitled to borrow an unsubsidized Federal
    Stafford Loan if the eligible institution at which the student has
    been accepted for enrollment, or at which the student is in
    attendance, has - 
        (1) determined and documented the student's need for the loan
      based on the student's estimated cost of attendance (as
      determined under section 1087ll of this title) and the student's
      estimated financial assistance, including a loan which qualifies
      for interest subsidy payments under section 1078 of this title;
      and
        (2) provided the lender a statement - 
          (A) certifying the eligibility of the student to receive a
        loan under this section and the amount of the loan for which
        such student is eligible, in accordance with subsection (c) of
        this section; and
          (B) setting forth a schedule for disbursement of the proceeds
        of the loan in installments, consistent with the requirements
        of section 1078-7 of this title.
    (c) Determination of amount of loan
      The determination of the amount of a loan by an eligible
    institution under subsection (b) of this section shall be
    calculated by subtracting from the estimated cost of attendance at
    the eligible institution any estimated financial assistance
    reasonably available to such student. An eligible institution may
    not, in carrying out the provisions of subsection (b) of this
    section, provide a statement which certifies the eligibility of any
    student to receive any loan under this section in excess of the
    amount calculated under the preceding sentence.
    (d) Loan limits
      (1) In general
        Except as provided in paragraphs (2) and (3), the annual and
      aggregate limits for loans under this section shall be the same
      as those established under section 1078(b)(1) of this title, less
      any amount received by such student pursuant to the subsidized
      loan program established under section 1078 of this title.
      (2) Annual limits for independent, graduate, and professional
        students
        The maximum annual amount of loans under this section an
      independent student (or a student whose parents are unable to
      borrow under section 1078-2 of this title or the Federal Direct
      PLUS Loan Program) may borrow in any academic year (as defined in
      section 1088(a)(2) of this title) or its equivalent shall be the
      amount determined under paragraph (1), plus - 
          (A) in the case of such a student attending an eligible
        institution who has not completed such student's first 2 years
        of undergraduate study - 
            (i) $4,000, if such student is enrolled in a program whose
          length is at least one academic year in length; and
            (ii) if such student is enrolled in a program of
          undergraduate education which is less than one academic year,
          the maximum annual loan amount that such student may receive
          may not exceed the amount that bears the same ratio to the
          amount specified in clause (i) as the length of such program
          measured in semester, trimester, quarter, or clock hours
          bears to one academic year;

          (B) in the case of a student at an eligible institution who
        has successfully completed such first and second years but has
        not successfully completed the remainder of a program of
        undergraduate education - 
            (i) $5,000; or
            (ii) if such student is enrolled in a program of
          undergraduate education, the remainder of which is less than
          one academic year, the maximum annual loan amount that such
          student may receive may not exceed the amount that bears the
          same ratio to the amount specified in subclause (I) as such
          remainder measured in semester, trimester, quarter, or clock
          hours bears to one academic year;

          (C) in the case of such a student who is a graduate or
        professional student attending an eligible institution,
        $10,000; and
          (D) in the case of a student enrolled in coursework specified
        in sections 1091(b)(3)(B) and 1091(b)(4)(B) of this title - 
            (i) $4,000 for coursework necessary for enrollment in an
          undergraduate degree or certificate program, and, in the case
          of a student who has obtained a baccalaureate degree, $5,000
          for coursework necessary for enrollment in a graduate or
          professional program; and
            (ii) in the case of a student who has obtained a
          baccalaureate degree, $5,000 for coursework necessary for a
          professional credential or certification from a State
          required for employment as a teacher in an elementary or
          secondary school;

      except in cases where the Secretary determines,(!1) that a higher
      amount is warranted in order to carry out the purpose of this
      part with respect to students engaged in specialized training
      requiring exceptionally high costs of education, but the annual
      insurable limit per student shall not be deemed to be exceeded by
      a line of credit under which actual payments by the lender to the
      borrower will not be made in any years in excess of the annual
      limit.

      (3) Aggregate limits for independent, graduate, and professional
        students
        The maximum aggregate amount of loans under this section a
      student described in paragraph (2) may borrow shall be the amount
      described in paragraph (1), adjusted to reflect the increased
      annual limits described in paragraph (2), as prescribed by the
      Secretary by regulation. Interest capitalized shall not be deemed
      to exceed such maximum aggregate amount.
    (e) Payment of principal and interest
      (1) Commencement of repayment
        Repayment of principal on loans made under this section shall
      begin at the beginning of the repayment period described in
      section 1078(b)(7) of this title. Not less than 30 days prior to
      the anticipated commencement of such repayment period, the holder
      of such loan shall provide notice to the borrower that interest
      will accrue before repayment begins and of the borrower's option
      to begin loan repayment at an earlier date.
      (2) Capitalization of interest
        (A) Interest on loans made under this section for which
      payments of principal are not required during the in-school and
      grace periods or for which payments are deferred under sections
      1077(a)(2)(C) and 1078(b)(1)(M) of this title shall, if agreed
      upon by the borrower and the lender - 
          (i) be paid monthly or quarterly; or
          (ii) be added to the principal amount of the loan by the
        lender only - 
            (I) when the loan enters repayment;
            (II) at the expiration of a grace period, in the case of a
          loan that qualifies for a grace period;
            (III) at the expiration of a period of deferment or
          forbearance; or
            (IV) when the borrower defaults.

        (B) The capitalization of interest described in subparagraph
      (A) shall not be deemed to exceed the annual insurable limit on
      account of the student.
      (3) Subsidies prohibited
        No payments to reduce interest costs shall be paid pursuant to
      section 1078(a) of this title on loans made pursuant to this
      section.
      (4) Applicable rates of interest
        Interest on loans made pursuant to this section shall be at the
      applicable rate of interest provided in section 1077a of this
      title.
      (5) Amortization
        The amount of the periodic payment and the repayment schedule
      for any loan made pursuant to this section shall be established
      by assuming an interest rate equal to the applicable rate of
      interest at the time the repayment of the principal amount of the
      loan commences. At the option of the lender, the note or other
      written evidence of the loan may require that - 
          (A) the amount of the periodic payment will be adjusted
        annually; or
          (B) the period of repayment of principal will be lengthened
        or shortened,

      in order to reflect adjustments in interest rates occurring as a
      consequence of section 1077a(c)(4) of this title.
      (6) Repayment period
        For purposes of calculating the repayment period under section
      1078(b)(9) of this title, such period shall commence at the time
      the first payment of principal is due from the borrower.
      (7) Qualification for forbearance
        A lender may grant the borrower of a loan under this section a
      forbearance for a period not to exceed 60 days if the lender
      reasonably determines that such a forbearance from collection
      activity is warranted following a borrower's request for
      forbearance, deferment, or a change in repayment plan, or a
      request to consolidate loans in order to collect or process
      appropriate supporting documentation related to the request.
      During any such period, interest on the loan shall accrue but not
      be capitalized.
    (f) Repealed. Pub. L. 105-244, title IV, Sec. 423(f), Oct. 7, 1998,
      112 Stat. 1698
    (g) Single application form and loan repayment schedule
      A guaranty agency shall use a single application form and a
    single repayment schedule for subsidized Federal Stafford loans
    made pursuant to section 1078 of this title and for unsubsidized
    Federal Stafford loans made pursuant to this section.
    (h) Insurance premium
      Each State or nonprofit private institution or organization
    having an agreement with the Secretary under section 1078(b)(1) of
    this title may charge a borrower under this section an insurance
    premium equal to not more than 1.0 percent of the principal amount
    of the loan, if such premium will not be used for incentive
    payments to lenders. Effective for loans for which the date of
    guarantee of principal is on or after July 1, 2006, in lieu of the
    insurance premium authorized under the preceding sentence, each
    State or nonprofit private institution or organization having an
    agreement with the Secretary under section 1078(b)(1) of this title
    shall collect and deposit into the Federal Student Loan Reserve
    Fund under section 1072a of this title, a Federal default fee of an
    amount equal to 1.0 percent of the principal amount of the loan,
    which fee shall be collected either by deduction from the proceeds
    of the loan or by payment from other non-Federal sources. The
    Federal default fee shall not be used for incentive payments to
    lenders.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 428H, as added Pub. L. 102-325,
    title IV, Sec. 422, July 23, 1992, 106 Stat. 535; amended Pub. L.
    103-66, title IV, Secs. 4047(a), 4102(b), Aug. 10, 1993, 107 Stat.
    363, 366; Pub. L. 103-208, Sec. 2(c)(42)-(45), Dec. 20, 1993, 107
    Stat. 2466, 2467; Pub. L. 104-134, title I, Sec. 101(d) [title V,
    Sec. 514(a)], Apr. 26, 1996, 110 Stat. 1321-211, 1321-245;
    renumbered title I, Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110
    Stat. 1327; Pub. L. 105-244, title IV, Sec. 423, Oct. 7, 1998, 112
    Stat. 1696; Pub. L. 109-171, title VIII, Secs. 8005(d), 8014(b)(2),
    Feb. 8, 2006, 120 Stat. 159, 169.)


-STATAMEND-
                      AMENDMENT OF SUBSECTION (D)(2)                  
      Pub. L. 109-171, title VIII, Sec. 8005(d), (e), Feb. 8, 2006, 120
    Stat. 159, provided that, effective July 1, 2007, subsection (d)(2)
    of this section is amended:

      (1) in subparagraph (C), by substituting "$12,000" for "$10,000";
    and
      (2) in subparagraph (D), by substituting "$7,000" for "$5,000" in
    clauses (i) and (ii).

-COD-
                               CODIFICATION                           
      Amendments by section 2(c)(42), (45) of Pub. L. 103-208 (which
    were effective as if included in Pub. L. 102-325) were executed to
    this section as amended by Pub. L. 102-325 and Pub. L. 103-66, to
    reflect the probable intent of Congress.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (h). Pub. L. 109-171, Sec. 8014(b)(2), inserted at
    end "Effective for loans for which the date of guarantee of
    principal is on or after July 1, 2006, in lieu of the insurance
    premium authorized under the preceding sentence, each State or
    nonprofit private institution or organization having an agreement
    with the Secretary under section 1078(b)(1) of this title shall
    collect and deposit into the Federal Student Loan Reserve Fund
    under section 1072a of this title, a Federal default fee of an
    amount equal to 1.0 percent of the principal amount of the loan,
    which fee shall be collected either by deduction from the proceeds
    of the loan or by payment from other non-Federal sources. The
    Federal default fee shall not be used for incentive payments to
    lenders."
      1998 - Subsec. (b). Pub. L. 105-244, Sec. 423(a), amended heading
    and text of subsec. (b) generally. Prior to amendment, text read as
    follows: "Any student meeting the requirements for student
    eligibility under section 1091 of this title (including graduate
    and professional students as defined in regulations promulgated by
    the Secretary) shall be entitled to borrow an unsubsidized Stafford
    loan. Such student shall provide to the lender a statement from the
    eligible institution at which the student has been accepted for
    enrollment, or at which the student is in attendance, which - 
        "(1) sets forth such student's estimated cost of attendance (as
      determined under section 1087ll of this title);
        "(2) sets forth such student's estimated financial assistance,
      including a loan which qualifies for subsidy payments under
      section 1078 of this title; and
        "(3) certifies the eligibility of the student to receive a loan
      under this section and the amount of the loan for which such
      student is eligible, in accordance with subsection (c) of this
      section."
      Subsec. (d)(2). Pub. L. 105-244, Sec. 423(b)(1)(A), in
    introductory provisions, inserted "(as defined in section
    1088(a)(2) of this title)" after "academic year" and struck out "or
    in any period of 7 consecutive months, whichever is longer," after
    "or its equivalent".
      Subsec. (d)(2)(A). Pub. L. 105-244, Sec. 423(b)(1)(B),
    substituted "length; and" for "length (as determined under section
    1088 of this title);" in cl. (i), added cl. (ii), and struck out
    former cls. (ii) and (iii) which read as follows:
      "(ii) $2,500, if such student is enrolled in a program whose
    length is less than one academic year, but at least  2/3  of such
    an academic year; and
      "(iii) $1,500, if such student is enrolled in a program whose
    length is less than  2/3 , but at least  1/3 , of such an academic
    year;".
      Subsec. (d)(2)(D). Pub. L. 105-244, Sec. 423(b)(1)(C), (D), added
    subpar. (D).
      Subsec. (d)(3). Pub. L. 105-244, Sec. 423(b)(2), inserted at end
    "Interest capitalized shall not be deemed to exceed such maximum
    aggregate amount."
      Subsec. (e)(2). Pub. L. 105-244, Sec. 423(c), amended heading and
    text of par. (2) generally. Prior to amendment, text read as
    follows: "Interest on loans made under this section for which
    payments of principal are not required during the in-school and
    grace periods or for which payments are deferred under sections
    1077(a)(2)(C) and 1078(b)(1)(M) of this title shall, if agreed upon
    by the borrower and the lender (A) be paid monthly or quarterly, or
    (B) be added to the principal amount of the loan not more
    frequently than quarterly by the lender. Such capitalization of
    interest shall not be deemed to exceed the annual insurable limit
    on account of the student."
      Subsec. (e)(6). Pub. L. 105-244, Sec. 423(d), which directed
    substitution of "repayment period under section 1078(b)(9) of this
    title" for "10 year repayment period under section 1078(b)(1)(D) of
    this title", was executed by making the substitution for "10-year
    repayment period under section 1078(b)(1)(D) of this title" to
    reflect the probable intent of Congress.
      Subsec. (e)(7). Pub. L. 105-244, Sec. 423(e), added par. (7).
      Subsec. (f). Pub. L. 105-244, Sec. 423(f), struck out heading and
    text of subsec. (f) which provided for lenders to charge borrowers
    origination fees on loans.
      1996 - Subsec. (d)(2). Pub. L. 104-134 substituted semicolon for
    period at end of subpar. (C) and inserted concluding provisions.
      1993 - Subsec. (b). Pub. L. 103-66, Sec. 4047(a)(1), inserted
    "(including graduate and professional students as defined in
    regulations promulgated by the Secretary)" in introductory
    provisions.
      Subsec. (d). Pub. L. 103-66, Sec. 4047(a)(2), amended subsec. (d)
    generally. Prior to amendment, subsec. (d) read as follows: "The
    annual and aggregate limits for loans under this section shall be
    the same as those established under section 1078(b)(1) of this
    title, less any amount received by such student pursuant to the
    subsidized loan program established under section 1078 of this
    title."
      Subsec. (d)(2)(B). Pub. L. 103-208, Sec. 2(c)(42), amended
    subpar. (B) generally. Prior to amendment, subpar. (B) read as
    follows: "in the case of such a student attending an eligible
    institution who has completed the first 2 years of undergraduate
    study but who has not completed the remainder of a program of
    undergraduate study - 
        "(i) $5,000, if such student is enrolled in a program whose
      length is at least one academic year in length (as determined
      under section 1088 of this section);
        "(ii) $3,325, if such student is enrolled in a program whose
      length is less than one academic year, but at least  2/3  of such
      an academic year; and
        "(iii) $1,675, if such student is enrolled in a program whose
      length is less than  2/3 , but at least  1/3 , of such an
      academic year; and". See Codification note above.
      Subsec. (e)(1). Pub. L. 103-208, Sec. 2(c)(43), substituted
    "shall begin at the beginning of the repayment period described in
    section 1078(b)(7) of this title." for "shall commence 6 months
    after the month in which the student ceases to carry at least one-
    half the normal full-time workload as determined by the
    institution." and inserted at end "Not less than 30 days prior to
    the anticipated commencement of such repayment period, the holder
    of such loan shall provide notice to the borrower that interest
    will accrue before repayment begins and of the borrower's option to
    begin loan repayment at an earlier date."
      Subsec. (e)(4). Pub. L. 103-208, Sec. 2(c)(44), substituted
    "section 1077a" for "section 1077a(e)".
      Subsec. (e)(5), (6). Pub. L. 103-66, Sec. 4047(a)(3), added pars.
    (5) and (6).
      Subsec. (f). Pub. L. 103-66, Sec. 4102(b)(1)(A), substituted
    "Origination fee" for "Insurance premium" in section catchline.
      Subsec. (f)(1). Pub. L. 103-66, Sec. 4102(b)(1)(B), (C), struck
    out reference to insurance premium in heading and in text
    substituted "an origination fee in the amount of 3.0 percent" for
    "a combined origination fee and insurance premium in the amount of
    6.5 percent" and struck out second sentence which read as follows:
    "A guaranty agency may not charge an insurance premium on any loan
    made under this section."
      Subsec. (f)(2). Pub. L. 103-66, Sec. 4102(b)(1)(D), substituted
    "origination fee" for "combined fee and premium".
      Subsec. (f)(3). Pub. L. 103-66, Sec. 4102(b)(1)(E), substituted
    "origination fee" for "combined origination fee and insurance
    premium".
      Subsec. (f)(4). Pub. L. 103-66, Sec. 4102(b)(1)(F), in heading
    substituted "origination fee" for "insurance premium" and in text
    substituted "origination fees" for "combined origination fee and
    insurance premiums" and "to pay" for "and premiums to pay".
      Subsec. (f)(5). Pub. L. 103-66, Sec. 4102(b)(1)(G), inserted
    "origination fee and" in heading and in text substituted "do not
    exceed the combined origination fee under this subsection and the
    insurance premium under subsection (h) of this section, the
    Secretary is directed to lower the origination fee and insurance
    premium accordingly" for "do not exceed the 6.5 percent insurance
    premium, the Secretary is directed to lower the insurance premium
    accordingly".
      Subsec. (h). Pub. L. 103-208, Sec. 2(c)(45), redesignated subsec.
    (l) as (h). See Codification note above.
      Subsec. (l). Pub. L. 103-208, Sec. 2(c)(45), redesignated subsec.
    (l) as (h). See Codification note above.
      Pub. L. 103-66, Sec. 4102(b)(2), added subsec. (l).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 8014(b)(2) of Pub. L. 109-171 effective July
    1, 2006, except as otherwise provided, see section 8001(c) of Pub.
    L. 109-171, set out as a note under section 1002 of this title.
      Amendment by section 8005(d) of Pub. L. 109-171 effective July 1,
    2007, see section 8005(e) of Pub. L. 109-171, set out as a note
    under section 1075 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 1996 AMENDMENT                 
      Section 101(d) [title V, Sec. 514(b)] of Pub. L. 104-134 provided
    that: "The amendments made by subsection (a) [amending this
    section] shall be effective for loans made to cover the cost of
    instruction for periods of enrollment beginning on or after July 1,
    1996."

                     EFFECTIVE DATE OF 1993 AMENDMENTS                 
      Amendment by section 2(c)(42)-(43)(A), (44), (45) 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(c)(43)(B) of Pub. L. 103-208 effective on and after
    Apr. 1, 1994, see section 5(a), (b)(5) of Pub. L. 103-208, set out
    as a note under section 1051 of this title.
      Section 4047(d) of Pub. L. 103-66 provided that: "Except as
    otherwise provided herein [see section 4047(c) of Pub. L. 103-66,
    set out below], the amendments made by this section [amending this
    section and repealing section 1078-1 of this title] shall take
    effect on July 1, 1994."
      Amendment by section 4102(b) of Pub. L. 103-66 effective July 1,
    1994, see section 4102(d) of Pub. L. 103-66, set out as a note
    under section 1078 of this title.

                              EFFECTIVE DATE                          
      Section effective with respect to loans made to cover the cost of
    instruction for periods of enrollment beginning on or after Oct. 1,
    1992, see section 432(a)(12) of Pub. L. 102-325, set out as an
    Effective Date of 1992 Amendment note under section 1078 of this
    title.

      CONTINUING APPLICABILITY OF TERMS, CONDITIONS, AND BENEFITS OF
                                   LOANS
      Section 4047(c) of Pub. L. 103-66 provided that: "Notwithstanding
    the amendments made by this section [amending this section and
    repealing section 1078-1 of this section], with respect to loans
    provided under sections 428A [former 20 U.S.C. 1078-1] and 428H of
    the Act [20 U.S.C. 1078-8] (as such sections existed on the date
    preceding the date of enactment of this Act [Aug. 10, 1993]) the
    terms, conditions and benefits applicable to such loans under such
    sections shall continue to apply to such loans after the date of
    enactment of this Act."

-FOOTNOTE-
    (!1) So in original. The comma probably should not appear.


-End-



-CITE-
    20 USC Sec. 1078-9                                          01/03/2007

-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. 1078-9. Special insurance and reinsurance rules

-STATUTE-
    (a) Designation of lenders, servicers, and guaranty agencies
      (1) Authority
        Whenever the Secretary determines that an eligible lender,
      servicer, or guaranty agency has a compliance performance rating
      that equals or exceeds 97 percent, the Secretary shall designate
      the eligible lender, servicer, or guaranty agency, as the case
      may be, for exceptional performance. The Secretary shall notify
      each appropriate guaranty agency of the eligible lenders and
      servicers designated under this section.
      (2) Compliance performance rating
        For purposes of paragraph (1), a compliance performance rating
      is determined with respect to compliance with due diligence in
      the collection of loans under this part for each year for which
      the determination is made. Such rating is equal to the percent of
      all due diligence requirements applicable to each loan, on
      average, as established by the Secretary by regulation, with
      respect to - 
          (A) loans serviced during the period by the eligible lender
        or servicer; or
          (B) loans on which loan collection was attempted by the
        guaranty agency.
    (b) Payment to lenders and servicers
      (1) 99 percent payment rule
        Each guaranty agency shall pay each eligible lender or servicer
      (as agent for an eligible lender) designated under subsection (a)
      of this section 99 percent of the unpaid principal and interest
      of all loans for which claims are submitted for payment by that
      eligible lender or servicer for the one-year period following the
      receipt by the guaranty agency of the notification of designation
      under this section or until the guaranty agency receives notice
      from the Secretary that the designation of the lender or servicer
      under subsection (a) of this section has been revoked.
      (2) Revocation authority
        The Secretary shall revoke the designation of a lender or
      servicer under subsection (a) of this section if any quarterly
      audit required under subsection (c)(5) of this section is not
      received by the Secretary by the date established by the
      Secretary or if the audit indicates the lender or servicer failed
      to maintain 97 percent or higher compliance with program
      regulations, as reflected in the performance of not less than 97
      percent of all due diligence requirements applicable to each
      loan, on average, as established by the Secretary for the purpose
      of this section, for 2 consecutive months or 90 percent for 1
      month.
      (3) Documentation
        Nothing in this section shall restrict or limit the authority
      of guaranty agencies to require the submission of claims
      documentation evidencing servicing performed on loans, except
      that the guaranty agency may not require greater documentation
      than that required for lenders and servicers not designated under
      subsection (a) of this section.
      (4) Payments to guaranty agencies
        The Secretary shall pay to each guaranty agency designated
      under subsection (a) of this section the appropriate percentage
      under this subsection for the 1-year period following the receipt
      by the guaranty agency of the notification of designation under
      subsection (a) of this section.
    (c) Supervision of designated lenders and servicers
      (1) Audits for lenders and servicers
        Each eligible lender or servicer desiring a designation under
      subsection (a) of this section shall have a financial and
      compliance audit of the loan portfolio of such eligible lender or
      servicer conducted annually by a qualified independent
      organization from a list of qualified organizations promulgated
      by the Secretary in accordance with standards established by the
      Comptroller General and the Secretary. The standards shall
      measure the lender's or servicer's compliance with the due
      diligence standards and shall include a defined statistical
      sampling technique designed to measure the performance rating of
      the eligible lender or servicer for the purpose of this section.
      Each eligible lender or servicer shall submit the audit required
      by this section to the Secretary and to each appropriate guaranty
      agency.
      (2) Additional information on lenders and servicers
        Each appropriate guaranty agency shall provide the Secretary
      with such other information in its possession regarding an
      eligible lender or servicer desiring designation as may relate to
      the Secretary's determination under subsection (a) of this
      section, including but not limited to any information suggesting
      that the application of a lender or servicer for designation
      under subsection (a) of this section should not be approved.
      (3) Secretary's determinations
        The Secretary shall make the determination under subsection (a)
      of this section based upon the audits submitted under this
      section, such other information as provided by any guaranty
      agency under paragraph (2), and any information in the possession
      of the Secretary or submitted by any other agency or office of
      the Federal Government. If the results of the audit are not
      persuasively rebutted by such other information, the Secretary
      shall inform the eligible lender or servicer and the appropriate
      guaranty agency that its application for designation as an
      exceptional lender or servicer has been approved.
      (4) Cost of audit
        Each eligible lender or servicer shall pay for all the costs of
      the audits required under this section.
      (5) Compliance audit
        In order to maintain its status as an exceptional eligible
      lender or servicer, the lender or servicer shall undergo a
      quarterly compliance audit at the end of each quarter (other than
      the quarter in which status as an exceptional lender or servicer
      is established through a financial and compliance audit, as
      described in subsection (c)(1) of this section), and submit the
      results of such audit to the Secretary and such appropriate
      guaranty agency. The compliance audit will review compliance with
      due diligence requirements for the period since the last audit.
      (6) Loss of designation
        If the audit performed pursuant to paragraph (5) fails to meet
      the standards for designation as an exceptional lender or
      servicer under subsection (a)(1) of this section, the lender or
      servicer shall lose its designation as an exceptional lender or
      servicer. A lender or servicer receiving a compliance audit not
      meeting the standard for designation as an exceptional lender or
      servicer may reapply for designation under subsection (a) of this
      section at any time.
      (7) Due diligence standards
        Due diligence standards used for determining compliance under
      paragraph (5) shall be promulgated by the Secretary after
      consultation with lenders, guaranty agencies and servicers and
      shall consist of a list of specific elements for the Federal
      regulations selected to provide an indication of systems
      degradation.
      (8) Additional revocation authority
        Notwithstanding any other provision of this section,
      designation under subsection (a) of this section may be revoked
      at any time by the Secretary if the Secretary determines that the
      eligible lender or servicer has failed to maintain an overall
      level of regulatory compliance consistent with the audit
      submitted by the eligible lender or servicer under this section
      or if the Secretary believes the lender or servicer may have
      engaged in fraud in securing designation under subsection (a) of
      this section or is failing to service loans in accordance with
      program regulations.
    (d) Supervision of designated guaranty agencies
      (1) Audit of guaranty agencies
        Each guaranty agency desiring a designation under subsection
      (a) of this section shall have a financial and compliance audit
      of the defaulted loan portfolio of such guaranty agency conducted
      annually by a qualified independent organization or person from a
      list of qualified organizations or persons promulgated by the
      Secretary in accordance with standards established by the
      Comptroller General and the Secretary. The standards shall
      include defined statistical sampling techniques designed to
      measure the performance rating of the guaranty agency for the
      purpose of this section. Each guaranty agency shall submit the
      audit required by this paragraph to the Secretary.
      (2) Quarterly sample audits
        The Secretary may require quarterly sample audits as a means of
      determining continued qualification of the guaranty agency for
      designation as an exceptional guaranty agency.
      (3) Secretary's determinations
        The Secretary shall make the determination under subsection (a)
      of this section based upon the audits submitted under this
      section and other information in his possession. If the results
      of the audit are not persuasively rebutted by such other
      information, the Secretary shall inform the guaranty agency that
      its application for designation as an exceptional guaranty agency
      has been approved.
      (4) Costs of audits
        Each guaranty agency shall pay for all of the costs of the
      audits regulated by this section.
      (5) Revocation for fraud
        The Secretary may revoke the designation of a guaranty agency
      under subsection (a) of this section at any time if the Secretary
      has reason to believe the guaranty agency secured its designation
      under subsection (a) of this section through fraud or fails to
      comply with applicable regulations.
      (6) Revocation based on performance
        Designation as an exceptional guaranty agency may be revoked at
      any time by the Secretary upon 30 days notice and an opportunity
      for a hearing before the Secretary upon a finding by the
      Secretary that the guaranty agency has failed to maintain an
      acceptable overall level of regulatory compliance.
    (e) Special rule
      Reimbursements made by the Secretary on loans submitted for claim
    by an eligible lender or loan servicer designated for exceptional
    performance under this section shall not be subject to additional
    review by the Secretary or repurchase by the guaranty agency for
    any reason other than a determination by the Secretary that the
    eligible lender, loan servicer, or guaranty agency engaged in fraud
    or other purposeful misconduct in obtaining designation for
    exceptional performance.
    (f) Limitation
      Nothing in this section shall be construed to affect the
    processing of claims on student loans of eligible lenders not
    subject to this paragraph.
    (g) Claims
      A lender, servicer, or guaranty agency designated under
    subsection (a) of this section failing to service loans or
    otherwise comply with applicable program regulations shall be
    considered in violation of section 3729 of title 31.
    (h) Evaluation
      Not later than 3 years after July 23, 1992, the Comptroller
    General shall submit to the Chairman of the Senate Labor and Human
    Resources Committee and the House Committee on Education and Labor,
    an evaluation of the provisions of this section including, but not
    limited to, the following:
        (1) The effectiveness of due diligence performed by lenders and
      servicers receiving designation as exceptional lenders or
      servicers from the perspective of securing maximum collections
      from borrowers.
        (2) A quantification of the dollar volume of claims that were
      paid to exceptional lenders and servicers that would not have
      been paid under applicable program provisions prior to the
      enactment of this section.
        (3) An assessment of the impact of this section on the
      financial condition of guaranty agencies.
        (4) An assessment of the savings to lenders, servicers, and
      guaranty agencies resulting from designation as exceptional
      performance.
        (5) An identification of specific administration steps that
      lenders, servicers, and guaranty agencies do not have to perform
      as a result of designation as exceptional lenders, servicers, or
      guaranty agencies.
        (6) A recommendation for program modifications applicable to
      all program participants based on the findings of the evaluation.
        (7) A recommendation for modifications to this section and
      whether the program should be continued.
    (i) Termination
      After receipt of the study authorized in subsection (h) of this
    section, the Secretary may terminate such program if he determines
    such termination to be in the fiscal interest of the United States.
    (j) Definitions
      For the purpose of this section - 
        (1) the term "due diligence requirements" means the activities
      required to be performed by lenders on delinquent loans pursuant
      to regulations issued by the Secretary;
        (2) the term "eligible loan" means a loan made, insured or
      guaranteed under this part;
        (3) the term "servicer" means an entity servicing and
      collecting student loans which - 
          (A) has substantial experience in servicing and collecting
        consumer loans or student loans;
          (B) has an independent financial audit annually which is
        furnished to the Secretary and any other parties designated by
        the Secretary;
          (C) has business systems which are capable of meeting the
        requirements of this part;
          (D) has adequate personnel who are knowledgeable about the
        student loan programs authorized by this part; and
          (E) does not have any owner, majority shareholder, director,
        or officer of the entity who has been convicted of a felony.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 428I, as added Pub. L. 102-325,
    title IV, Sec. 422, July 23, 1992, 106 Stat. 536; amended Pub. L.
    103-208, Sec. 2(c)(46), Dec. 20, 1993, 107 Stat. 2467; Pub. L. 109-
    171, title VIII, Sec. 8014(i), Feb. 8, 2006, 120 Stat. 171.)

-COD-
                               CODIFICATION                           
      July 23, 1992, referred to in subsec. (h), was in the original
    "the date of enactment of this Act", which was translated as
    meaning the date of enactment of Pub. L. 102-325 which enacted this
    section, to reflect the probable intent of Congress.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(1). Pub. L. 109-171 substituted "99 percent"
    for "100 percent" in heading and text.
      1993 - Subsec. (g). Pub. L. 103-208 substituted "section 3729 of
    title 31" for "the Federal False Claims Act".

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.
      Committee on Education and Labor of House of Representatives
    treated as referring to Committee on Economic and Educational
    Opportunities of House of Representatives by section 1(a) of Pub.
    L. 104-14, set out as a note preceding section 21 of Title 2, The
    Congress. Committee on Economic and Educational Opportunities of
    House of Representatives changed to Committee on Education and the
    Workforce of House of Representatives by House Resolution No. 5,
    One Hundred Fifth Congress, Jan. 7, 1997.


-MISC2-
                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 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.

-End-



-CITE-
    20 USC Sec. 1078-10                                         01/03/2007

-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. 1078-10. Loan forgiveness for teachers

-STATUTE-
    (a) Statement of purpose
      It is the purpose of this section to encourage individuals to
    enter and continue in the teaching profession.
    (b) Program authorized
      The Secretary shall carry out a program, through the holder of
    the loan, of assuming the obligation to repay a qualified loan
    amount for a loan made under section 1078 or 1078-8 of this title,
    in accordance with subsection (c) of this section, for any new
    borrower on or after October 1, 1998, who - 
        (1) has been employed as a full-time teacher for 5 consecutive
      complete school years - 
          (A) in a school that qualifies under section 1087ee(a)(2)(A)
        of this title for loan cancellation for Perkins loan recipients
        who teach in such schools; and
          (B) if employed as an elementary school or secondary school
        teacher, is highly qualified as defined in section 7801 of this
        title,(!1) or meets the requirements of subsection (g)(3); and


        (2) is not in default on a loan for which the borrower seeks
      forgiveness.
    (c) Qualified loans amount
      (1) In general
        The Secretary shall repay not more than $5,000 in the aggregate
      of the loan obligation on a loan made under section 1078 or 1078-
      8 of this title that is outstanding after the completion of the
      fifth complete school year of teaching described in subsection
      (b)(1) of this section. No borrower may receive a reduction of
      loan obligations under both this section and section 1087j of
      this title.
      (2) Treatment of consolidation loans
        A loan amount for a loan made under section 1078-3 of this
      title may be a qualified loan amount for the purposes of this
      subsection only to the extent that such loan amount was used to
      repay a Federal Direct Stafford Loan, a Federal Direct
      Unsubsidized Stafford Loan, or a loan made under section 1078 or
      1078-8 of this title for a borrower who meets the requirements of
      subsection (b) of this section, as determined in accordance with
      regulations prescribed by the Secretary.
      (3) Additional amounts for teachers in mathematics, science, or
        special education
        Notwithstanding the amount specified in paragraph (1), the
      aggregate amount that the Secretary shall repay under this
      section shall be not more than $17,500 in the case of - 
          (A) a secondary school teacher - 
            (i) who meets the requirements of subsection (b) of this
          section; and
            (ii) whose qualifying employment for purposes of such
          subsection is teaching mathematics or science on a full-time
          basis; and

          (B) an elementary school or secondary school teacher - 
            (i) who meets the requirements of subsection (b) of this
          section;
            (ii) whose qualifying employment for purposes of such
          subsection is as a special education teacher whose primary
          responsibility is to provide special education to children
          with disabilities (as those terms are defined in section 1401
          of this title); and
            (iii) who, as certified by the chief administrative officer
          of the public or non-profit private elementary school or
          secondary school in which the borrower is employed, is
          teaching children with disabilities that correspond with the
          borrower's special education training and has demonstrated
          knowledge and teaching skills in the content areas of the
          elementary school or secondary school curriculum that the
          borrower is teaching.
    (d) Regulations
      The Secretary is authorized to issue such regulations as may be
    necessary to carry out the provisions of this section.
    (e) Construction
      Nothing in this section shall be construed to authorize any
    refunding of any repayment of a loan.
    (f) List
      If the list of schools in which a teacher may perform service
    pursuant to subsection (b) of this section is not available before
    May 1 of any year, the Secretary may use the list for the year
    preceding the year for which the determination is made to make such
    service determination.
    (g) Additional eligibility provisions
      (1) Continued eligibility
        Any teacher who performs service in a school that - 
          (A) meets the requirements of subsection (b)(1)(A) of this
        section in any year during such service; and
          (B) in a subsequent year fails to meet the requirements of
        such subsection,

      may continue to teach in such school and shall be eligible for
      loan forgiveness pursuant to subsection (b) of this section.
      (2) Prevention of double benefits
        No borrower may, for the same service, receive a benefit under
      both this subsection and subtitle D of title I of the National
      and Community Service Act of 1990 (42 U.S.C. 12601 et seq.).
      (3) Private school teachers
        An individual who is employed as a teacher in a private school
      and is exempt from State certification requirements (unless
      otherwise applicable under State law), may, in lieu of the
      requirement of subsection (b)(1)(B), have such employment treated
      as qualifying employment under this section if such individual is
      permitted to and does satisfy rigorous subject knowledge and
      skills tests by taking competency tests in the applicable grade
      levels and subject areas. For such purposes, the competency tests
      taken by such a private school teacher shall be recognized by 5
      or more States for the purpose of fulfilling the highly qualified
      teacher requirements under section 7801 of this title, and the
      score achieved by such teacher on each test shall equal or exceed
      the average passing score of those 5 States.
    (h) "Year" defined
      For purposes of this section, the term "year", where applied to
    service as a teacher, means an academic year as defined by the
    Secretary.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 428J, as added Pub. L. 102-325,
    title IV, Sec. 422, July 23, 1992, 106 Stat. 541; amended Pub. L.
    103-82, title I, Sec. 102(c)(2), Sept. 21, 1993, 107 Stat. 824;
    Pub. L. 103-208, Sec. 2(c)(47)-(51), Dec. 20, 1993, 107 Stat. 2467;
    Pub. L. 105-244, title IV, Sec. 424, Oct. 7, 1998, 112 Stat. 1698;
    Pub. L. 108-409, Sec. 3(a)(1)(A), (b)(1), Oct. 30, 2004, 118 Stat.
    2300; Pub. L. 109-171, title VIII, Sec. 8013(e)(1), Feb. 8, 2006,
    120 Stat. 167.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 7801 of this title, referred to in subsec. (b)(1)(B), was
    in the original "section 9101 of the Elementary Secondary Education
    Act of 1965", which was translated as meaning section 9101 of the
    Elementary and Secondary Education Act of 1965, to reflect the
    probable intent of Congress.
      The National and Community Service Act of 1990, referred to in
    subsec. (g)(2), is Pub. L. 101-610, Nov. 16, 1990, 104 Stat. 3127,
    as amended. Subtitle D of title I of the Act is classified
    generally to division D of subchapter I (Sec. 12601 et seq.) of
    chapter 129 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 12501 of Title 42 and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(1)(B). Pub. L. 109-171, Sec. 8013(e)(1)(A),
    inserted ", or meets the requirements of subsection (g)(3)" after
    "section 7801 of this title".
      Subsec. (g)(3). Pub. L. 109-171, Sec. 8013(e)(1)(B), added par.
    (3).
      2004 - Subsec. (b)(1). Pub. L. 108-409, Sec. 3(a)(1)(A), added
    subpar. (B) and struck out former subpars. (B) and (C) which read
    as follows:
      "(B) if employed as a secondary school teacher, is teaching a
    subject area that is relevant to the borrower's academic major as
    certified by the chief administrative officer of the public or
    nonprofit private secondary school in which the borrower is
    employed; and
      "(C) if employed as an elementary school teacher, has
    demonstrated, as certified by the chief administrative officer of
    the public or nonprofit private elementary school in which the
    borrower is employed, knowledge and teaching skills in reading,
    writing, mathematics, and other areas of the elementary school
    curriculum; and".
      Subsec. (c)(3). Pub. L. 108-409, Sec. 3(b)(1), added par. (3).
      1998 - Pub. L. 105-244 amended section catchline and text
    generally. Prior to amendment, section authorized Secretary to
    carry out demonstration program for loan forgiveness for teachers,
    individuals performing national community service, and nurses.
      1993 - Subsec. (b)(1). Pub. L. 103-208, Sec. 2(c)(47),
    substituted "section" for "sections" in introductory provisions.
      Pub. L. 103-82, Sec. 102(c)(2)(A), substituted "October 1, 1989"
    for "October 1, 1992" in introductory provisions.
      Subsec. (b)(1)(B). Pub. L. 103-208, Sec. 2(c)(48), substituted
    "serves as a full-time volunteer" for "agrees in writing to
    volunteer for service".
      Subsec. (c)(1). Pub. L. 103-208, Sec. 2(c)(49), substituted "year
    of service" for "academic year" wherever appearing.
      Subsec. (c)(5). Pub. L. 103-82, Sec. 102(c)(2)(B), added par.
    (5).
      Subsec. (d). Pub. L. 103-208, Sec. 2(c)(50), substituted "to
    eligible" for "of eligibility" in heading.
      Subsec. (e). Pub. L. 103-208, Sec. 2(c)(51), amended subsec. (e)
    generally. Prior to amendment, subsec. (e) read as follows: "Each
    eligible individual desiring loan repayment under this section
    shall submit an application to the Secretary at such time, in such
    manner, and containing such information as the Secretary may
    reasonably require."

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

             EFFECTIVE DATE OF 2004 AMENDMENT; TRANSITION RULE         
      Pub. L. 108-409, Sec. 3(a)(2), Oct. 30, 2004, 118 Stat. 2300,
    provided that:
      "(A) Rule. - The amendments made by paragraph (1) of this
    subsection to sections 428J(b)(1) and 460(b)(1)(A) of the Higher
    Education Act of 1965 [sections 1078-10(b)(1) and 1087j(b)(1)(A) of
    this title] shall not be applied to disqualify any individual who,
    before the date of enactment of this Act [Oct. 30, 2004], commenced
    service that met and continues to meet the requirements of such
    sections as such sections were in effect on the day before the date
    of enactment of this Act.
      "(B) Rule not applicable to increased qualified loan amounts. -
    Subparagraph (A) of this paragraph shall not apply for purposes of
    obtaining increased qualified loan amounts under sections
    428J(c)(3) and 460(c)(3) of the Higher Education Act of 1965
    [sections 1078-10(c)(3) and 1087j(c)(3) of this title] as added by
    subsection (b) of this section."
      Pub. L. 108-409, Sec. 3(b)(3), Oct. 30, 2004, 118 Stat. 2301, as
    amended by Pub. L. 109-150, Sec. 2(c)(1), Dec. 30, 2005, 119 Stat.
    2884; Pub. L. 109-171, title VIII, Sec. 8013(c)(2), (d)(1), Feb. 8,
    2006, 120 Stat. 167, provided that: "The amendments made by this
    subsection [amending this section and section 1087j of this title]
    shall apply only with respect to eligible individuals who are new
    borrowers (as such term is defined in 103 of the Higher Education
    Act of 1965 (20 U.S.C. 1003)) on or after October 1, 1998."
      [Pub. L. 109-150, Sec. 2(c)(1), which amended section 3(b)(3) of
    Pub. L. 108-409, set out above, was repealed by Pub. L. 109-171,
    Sec. 8013(d)(1), eff. July 1, 2006.]
      [Amendment by Pub. L. 109-150 effective as if enacted on Oct. 1,
    2005, see section 2(d)(2) of Pub. L. 109-150, set out as an
    Effective Date of 2005 Amendment note under section 1087-1 of this
    title.]
      [Amendment by Pub. L. 109-171, Sec. 8013(c)(2), effective as if
    enacted on Oct. 1, 2005, and as if amendment by section 2(c)(1) of
    Pub. L. 109-150 had not been enacted, see section 8013(c)(3),
    (d)(2) of Pub. L. 109-171, set out as notes under section 1087-1 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 AMENDMENTS                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.
      Amendment by Pub. L. 103-82 effective Oct. 1, 1993, see section
    123 of Pub. L. 103-82, set out as a note under section 1701 of
    Title 16, Conservation.

             INFORMATION ON BENEFITS TO RURAL SCHOOL DISTRICTS         
      Pub. L. 108-409, Sec. 3(c), Oct. 30, 2004, 118 Stat. 2302,
    provided that: "The Secretary shall - 
        "(1) notify local educational agencies eligible to participate
      in the Small Rural Achievement Program authorized under subpart 1
      of part B of title VI of the Elementary and Secondary Education
      Act of 1965 [20 U.S.C. 7345 et seq.] of the benefits available
      under the amendments made by this section [amending this section
      and section 1087j of this title]; and
        "(2) encourage such agencies to notify their teachers of such
      benefits."

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1078-11                                         01/03/2007

-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. 1078-11. Loan forgiveness for child care providers

-STATUTE-
    (a) Purpose
      It is the purpose of this section - 
        (1) to bring more highly trained individuals into the early
      child care profession; and
        (2) to keep more highly trained child care providers in the
      early child care field for longer periods of time.
    (b) Definitions
      In this section:
      (1) Child care facility
        The term "child care facility" means a facility, including a
      home, that - 
          (A) provides child care services; and
          (B) meets applicable State or local government licensing,
        certification, approval, or registration requirements, if any.
      (2) Child care services
        The term "child care services" means activities and services
      provided for the education and care of children from birth
      through age 5 by an individual who has a degree in early
      childhood education.
      (3) Degree
        The term "degree" means an associate's or bachelor's degree
      awarded by an institution of higher education.
      (4) Early childhood education
        The term "early childhood education" means education in the
      areas of early child education, child care, or any other
      educational area related to child care that the Secretary
      determines appropriate.
      (5) Institution of higher education
        Notwithstanding section 1002 of this title, the term
      "institution of higher education" has the meaning given the term
      in section 1001 of this title.
    (c) Demonstration program
      (1) In general
        The Secretary may carry out a demonstration program of assuming
      the obligation to repay, pursuant to subsection (d) of this
      section, a loan made, insured, or guaranteed under this part or
      part C of this subchapter (excluding loans made under sections
      1078-2 and 1078-3 of this title or comparable loans made under
      part C of this subchapter) for any new borrower after October 7,
      1998, who - 
          (A) completes a degree in early childhood education;
          (B) obtains employment in a child care facility; and
          (C) has worked full time for the 2 consecutive years
        preceding the year for which the determination is made as a
        child care provider in a low-income community.
      (2) Low-income community
        For the purposes of this subsection, the term "low-income
      community" means a community in which 70 percent of households
      within the community earn less than 85 percent of the State
      median household income.
      (3) Award basis; priority
        (A) Award basis
          Subject to subparagraph (B), loan repayment under this
        section shall be on a first-come, first-served basis and
        subject to the availability of appropriations.
        (B) Priority
          The Secretary shall give priority in providing loan repayment
        under this section for a fiscal year to student borrowers who
        received loan repayment under this section for the preceding
        fiscal year.
      (4) Regulations
        The Secretary is authorized to prescribe such regulations as
      may be necessary to carry out the provisions of this section.
    (d) Loan repayment
      (1) In general
        The Secretary shall assume the obligation to repay - 
          (A) after the second consecutive year of employment described
        in subparagraphs (B) and (C) of subsection (c)(1) of this
        section, 20 percent of the total amount of all loans made after
        October 7, 1998, to a student under this part or part C of this
        subchapter;
          (B) after the third consecutive year of such employment, 20
        percent of the total amount of all such loans; and
          (C) after each of the fourth and fifth consecutive years of
        such employment, 30 percent of the total amount of all such
        loans.
      (2) Construction
        Nothing in this section shall be construed to authorize the
      refunding of any repayment of a loan made under this part or part
      C of this subchapter.
      (3) Interest
        If a portion of a loan is repaid by the Secretary under this
      section for any year, the proportionate amount of interest on
      such loan which accrues for such year shall be repaid by the
      Secretary.
      (4) Special rule
        In the case where a student borrower who is not participating
      in loan repayment pursuant to this section returns to an
      institution of higher education after graduation from an
      institution of higher education for the purpose of obtaining a
      degree in early childhood education, the Secretary is authorized
      to assume the obligation to repay the total amount of loans made
      under this part or part C of this subchapter incurred for a
      maximum of two academic years in returning to an institution of
      higher education for the purpose of obtaining a degree in early
      childhood education. Such loans shall only be repaid for
      borrowers who qualify for loan repayment pursuant to the
      provisions of this section, and shall be repaid in accordance
      with the provisions of paragraph (1).
      (5) Ineligibility of national service award recipients
        No student borrower may, for the same volunteer service,
      receive a benefit under both this section and subtitle D of title
      I of the National and Community Service Act of 1990 (42 U.S.C.
      12601 et seq.).
    (e) Repayment to eligible lenders
      The Secretary shall pay to each eligible lender or holder for
    each fiscal year an amount equal to the aggregate amount of loans
    which are subject to repayment pursuant to this section for such
    year.
    (f) Application for repayment
      (1) In general
        Each eligible individual desiring loan repayment under this
      section shall submit a complete and accurate application to the
      Secretary at such time, in such manner, and containing such
      information as the Secretary may require.
      (2) Conditions
        An eligible individual may apply for loan repayment under this
      section after completing each year of qualifying employment. The
      borrower shall receive forbearance while engaged in qualifying
      employment unless the borrower is in deferment while so engaged.
    (g) Evaluation
      (1) In general
        The Secretary shall conduct, by grant or contract, an
      independent national evaluation of the impact of the
      demonstration program assisted under this section on the field of
      early childhood education.
      (2) Competitive basis
        The grant or contract described in subsection (b) (!1) of this
      section shall be awarded on a competitive basis.

      (3) Contents
        The evaluation described in this subsection shall - 
          (A) determine the number of individuals who were encouraged
        by the demonstration program assisted under this section to
        pursue early childhood education;
          (B) determine the number of individuals who remain employed
        in a child care facility as a result of participation in the
        program;
          (C) identify the barriers to the effectiveness of the
        program;
          (D) assess the cost-effectiveness of the program in improving
        the quality of - 
            (i) early childhood education; and
            (ii) child care services;

          (E) identify the reasons why participants in the program have
        chosen to take part in the program;
          (F) identify the number of individuals participating in the
        program who received an associate's degree and the number of
        such individuals who received a bachelor's degree; and
          (G) identify the number of years each individual participates
        in the program.
      (4) Interim and final evaluation reports
        The Secretary shall prepare and submit to the President and the
      Congress such interim reports regarding the evaluation described
      in this subsection as the Secretary deems appropriate, and shall
      prepare and so submit a final report regarding the evaluation by
      January 1, 2002.
    (h) Authorization of appropriations
      There are authorized to be appropriated to carry out this section
    $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. 428K, as added Pub. L. 105-244,
    title IV, Sec. 425, Oct. 7, 1998, 112 Stat. 1699.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National and Community Service Act of 1990, referred to in
    subsec. (d)(5), is Pub. L. 101-610, Nov. 16, 1990, 104 Stat. 3127,
    as amended. Subtitle D of title I of the Act is classified
    generally to division D of subchapter I (Sec. 12601 et seq.) of
    chapter 129 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 12501 of Title 42 and Tables.


-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.

-FOOTNOTE-
    (!1) So in original. Probably should be a reference to paragraph
         (1).


-End-



-CITE-
    20 USC Sec. 1079                                            01/03/2007

-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. 1079. Certificate of Federal loan insurance - effective date
      of insurance

-STATUTE-
    (a) Loan-by-loan insurance
      (1) Authority to issue certificates on application
        If, upon application by an eligible lender, made upon such
      form, containing such information, and supported by such evidence
      as the Secretary may require, and otherwise in conformity with
      this section, the Secretary finds that the applicant has made a
      loan to an eligible student which is insurable under the
      provisions of this part, he may issue to the applicant a
      certificate of insurance covering the loan and setting forth the
      amount and terms of the insurance.
      (2) Effectiveness of certificate
        Insurance evidenced by a certificate of insurance pursuant to
      subsection (a)(1) of this section shall become effective upon the
      date of issuance of the certificate, except that the Secretary is
      authorized, in accordance with regulations, to issue commitments
      with respect to proposed loans, or with respect to lines (or
      proposed lines) of credit, submitted by eligible lenders, and in
      that event, upon compliance with subsection (a)(1) of this
      section by the lender, the certificate of insurance may be issued
      effective as of the date when any loan, or any payment by the
      lender pursuant to a line of credit, to be covered by such
      insurance was made. Such insurance shall cease to be effective
      upon 60 days' default by the lender in the payment of any
      installment of the premiums payable pursuant to subsection (c) of
      this section.
      (3) Contents of applications
        An application submitted pursuant to subsection (a)(1) of this
      section shall contain (A) an agreement by the applicant to pay,
      in accordance with regulations, the premiums fixed by the
      Secretary pursuant to subsection (c) of this section, and (B) an
      agreement by the applicant that if the loan is covered by
      insurance the applicant will submit such supplementary reports
      and statement during the effective period of the loan agreement,
      upon such forms, at such times, and containing such information
      as the Secretary may prescribe by or pursuant to regulation.
    (b) Comprehensive insurance coverage certificate
      (1) Establishment of system by regulation
        In lieu of requiring a separate insurance application and
      issuing a separate certificate of insurance for each student loan
      made by an eligible lender as provided in subsection (a) of this
      section, the Secretary may, in accordance with regulations
      consistent with section 1074 of this title, issue to any eligible
      lender applying therefor a certificate of comprehensive insurance
      coverage which shall, without further action by the Secretary,
      insure all insurable loans made by that lender, on or after the
      date of the certificate and before a specified cutoff date,
      within the limits of an aggregate maximum amount stated in the
      certificate. Such regulations may provide for conditioning such
      insurance, with respect to any loan, upon compliance by the
      lender with such requirements (to be stated or incorporated by
      reference in the certificate) as in the Secretary's judgment will
      best achieve the purpose of this subsection while protecting the
      United States from the risk of unreasonable loss and promoting
      the objectives of this part, including (but not limited to)
      provisions as to the reporting of such loans and information
      relevant thereto to the Secretary and as to the payment of
      initial and other premiums and the effect of default therein, and
      including provision for confirmation by the Secretary from time
      to time (through endorsement of the certificate) of the coverage
      of specific new loans by such certificate, which confirmation
      shall be incontestable by the Secretary in the absence of fraud
      or misrepresentation of fact or patent error.
      (2) Uncovered loans
        If the holder of a certificate of comprehensive insurance
      coverage issued under this subsection grants to a student a line
      of credit extending beyond the cutoff date specified in that
      certificate, loans or payments thereon made by the holder after
      that date pursuant to the line of credit shall not be deemed to
      be included in the coverage of that certificate except as may be
      specifically provided therein; but, subject to the limitations of
      section 1074 of this title, the Secretary may, in accordance with
      regulations, make commitments to insure such future loans or
      payments, and such commitments may be honored either as provided
      in subsection (a) of this section or by inclusion of such
      insurance on comprehensive coverage under the subsection for the
      period or periods in which such future loans or payments are
      made.
    (c) Charges for Federal insurance
      The Secretary shall, pursuant to regulations, charge for
    insurance on each loan under this part a premium in an amount not
    to exceed one-fourth of 1 percent per year of the unpaid principal
    amount of such loan (excluding interest added to principal),
    payable in advance, at such times and in such manner as may be
    prescribed by the Secretary. Such regulations may provide that such
    premium shall not be payable, or if paid shall be refundable, with
    respect to any period after default in the payment of principal or
    interest or after the borrower has died or becomes totally and
    permanently disabled, if (1) notice of such default or other event
    has been duly given, and (2) requests for payment of the loss
    insured against has been made or the Secretary has made such
    payment on his own motion pursuant to section 1080(a) of this
    title.
    (d) Assignability of insurance
      The rights of an eligible lender arising under insurance
    evidenced by a certificate of insurance issued to it under this
    section may be assigned as security by such lender only to another
    eligible lender, and subject to regulation by the Secretary.
    (e) Consolidation not to affect insurance
      The consolidation of the obligations of two or more federally
    insured loans obtained by a student borrower in any fiscal year
    into a single obligation evidenced by a single instrument of
    indebtedness shall not affect the insurance by the United States.
    If the loans thus consolidated are covered by separate certificates
    of insurance issued under subsection (a) of this section, the
    Secretary may upon surrender of the original certificates issue a
    new certificate of insurance in accordance with that subsection
    upon the consolidated obligation; if they are covered by a single
    comprehensive certificate issued under subsection (b) of this
    section, the Secretary may amend that certificate accordingly.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 429, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1395.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1079, Pub. L. 89-329, title IV, Sec. 429, Nov. 8,
    1965, 79 Stat. 1243; Pub. L. 94-482, title I, Sec. 127(a), Oct. 12,
    1976, 90 Stat. 2123; Pub. L. 96-374, title XIII, Sec. 1391(a)(1),
    (2), Oct. 3, 1980, 94 Stat. 1503, related to certificates of
    Federal loan insurance, prior to the general revision of this part
    by Pub. L. 99-498.

-End-



-CITE-
    20 USC Sec. 1080                                            01/03/2007

-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. 1080. Default of student under Federal loan insurance program

-STATUTE-
    (a) Notice to Secretary and payment of loss
      Upon default by the student borrower on any loan covered by
    Federal loan insurance pursuant to this part, and prior to the
    commencement of suit or other enforcement proceedings upon security
    for that loan, the insurance beneficiary shall promptly notify the
    Secretary, and the Secretary shall if requested (at that time or
    after further collection efforts) by the beneficiary, or may on the
    Secretary's own motion, if the insurance is still in effect, pay to
    the beneficiary the amount of the loss sustained by the insured
    upon that loan as soon as that amount has been determined. The
    "amount of the loss" on any loan shall, for the purposes of this
    subsection and subsection (b) of this section, be deemed to be an
    amount equal to the unpaid balance of the principal amount and
    accrued interest, including interest accruing from the date of
    submission of a valid default claim (as determined by the
    Secretary) to the date on which payment is authorized by the
    Secretary, reduced to the extent required by section 1075(b) of
    this title. Such beneficiary shall be required to meet the
    standards of due diligence in the collection of the loan and shall
    be required to submit proof that the institution was contacted and
    other reasonable attempts were made to locate the borrower (when
    the location of the borrower is unknown) and proof that contact was
    made with the borrower (when the location is known). The Secretary
    shall make the determination required to carry out the provisions
    of this section not later than 90 days after the notification by
    the insurance beneficiary and shall make payment in full on the
    amount of the beneficiary's loss pending completion of the due
    diligence investigation.
    (b) Effect of payment of loss
      Upon payment of the amount of the loss pursuant to subsection (a)
    of this section, the United States shall be subrogated for all of
    the rights of the holder of the obligation upon the insured loan
    and shall be entitled to an assignment of the note or other
    evidence of the insured loan by the insurance beneficiary. If the
    net recovery made by the Secretary on a loan after deduction of the
    cost of that recovery (including reasonable administrative costs
    and collection costs, to the extent set forth in regulations issued
    by the Secretary) exceeds the amount of the loss, the excess shall
    be paid over to the insured. The Secretary may, in attempting to
    make recovery on such loans, contract with private business
    concerns, State student loan insurance agencies, or State guaranty
    agencies, for payment for services rendered by such concerns or
    agencies in assisting the Secretary in making such recovery. Any
    contract under this subsection entered into by the Secretary shall
    provide that attempts to make recovery on such loans shall be fair
    and reasonable, and do not involve harassment, intimidation, false
    or misleading representations, or unnecessary communications
    concerning the existence of any such loan to persons other than the
    student borrower.
    (c) Forbearance not precluded
      Nothing in this section or in this part shall be construed to
    preclude any forbearance for the benefit of the student borrower
    which may be agreed upon by the parties to the insured loan and
    approved by the Secretary, or to preclude forbearance by the
    Secretary in the enforcement of the insured obligation after
    payment on that insurance. Any forbearance which is approved by the
    Secretary under this subsection with respect to the repayment of a
    loan, including a forbearance during default, shall not be
    considered as indicating that a holder of a federally insured loan
    has failed to exercise reasonable care and due diligence in the
    collection of the loan.
    (d) Care and diligence required of holders
      Nothing in this section or in this part shall be construed to
    excuse the holder of a federally insured loan from exercising
    reasonable care and diligence in the making and collection of loans
    under the provisions of this part. If the Secretary, after a
    reasonable notice and opportunity for hearing to an eligible
    lender, finds that it has substantially failed to exercise such
    care and diligence or to make the reports and statements required
    under section 1078(a)(4) of this title and section 1079(a)(3) of
    this title, or to pay the required Federal loan insurance premiums,
    the Secretary shall disqualify that lender for further Federal
    insurance on loans granted pursuant to this part until the
    Secretary is satisfied that its failure has ceased and finds that
    there is reasonable assurance that the lender will in the future
    exercise necessary care and diligence or comply with such
    requirements, as the case may be.
    (e) Default rate of lenders, holders, and guaranty agencies
      (1) In general
        The Secretary shall annually publish a list indicating the
      cohort default rate (determined in accordance with section
      1085(m) of this title) for each originating lender, subsequent
      holder, and guaranty agency participating in the program assisted
      under this part and an average cohort default rate for all
      institutions of higher education within each State.
      (2) Regulations
        The Secretary shall prescribe regulations designed to prevent
      an institution from evading the application to that institution
      of a cohort default rate through the use of such measures as
      branching, consolidation, change of ownership or control, or any
      similar device.
      (3) Rate establishment and correction
        The Secretary shall establish a cohort default rate for
      lenders, holders, and guaranty agencies (determined consistent
      with section 1085(m) of this title), except that the rate for
      lenders, holders, and guaranty agencies shall not reflect any
      loans issued in accordance with section 1078(j) of this title.
      The Secretary shall allow institutions, lenders, holders, and
      guaranty agencies the opportunity to correct such cohort default
      rate information.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 430, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1397; amended Pub. L. 102-
    325, title IV, Sec. 423, July 23, 1992, 106 Stat. 543; Pub. L. 105-
    244, title IV, Sec. 426, Oct. 7, 1998, 112 Stat. 1702.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1080, Pub. L. 89-329, title IV, Sec. 430, Nov. 8,
    1965, 79 Stat. 1244; Pub. L. 90-575, title I, Sec. 113(b)(5), Oct.
    16, 1968, 82 Stat. 1021; Pub. L. 92-318, title I, Sec. 132B(c),
    June 23, 1972, 86 Stat. 262; Pub. L. 94-482, title I, Sec. 127(a),
    Oct. 12, 1976, 90 Stat. 2125; Pub. L. 95-43, Sec. 1(a)(33), June
    15, 1977, 91 Stat. 216; Pub. L. 96-374, title IV, Secs. 416(a)(1),
    (b), 422, title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1420,
    1421, 1432, 1503; Pub. L. 99-272, title XVI, Secs. 16014(a)(2),
    16022, Apr. 7, 1986, 100 Stat. 341, 349, related to default of
    student borrowers under Federal loan insurance program, prior to
    the general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-244 inserted "the institution was
    contacted and other" after "submit proof that" in third sentence.
      1992 - Subsec. (e). Pub. L. 102-325 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.

                       STUDY OF FRAUD-BASED DEFENSES                   
      Pub. L. 102-325, title XIV, Sec. 1403, July 23, 1992, 106 Stat.
    817, directed Secretary of Education to conduct a study of impact
    of fraud-based defenses on Federal Family Education Loan Program
    and to submit a report to Congress on the study not later than 19
    months after July 23, 1992, prior to repeal by Pub. L. 105-332,
    Sec. 6(b)(2), Oct. 31, 1998, 112 Stat. 3128.

-End-



-CITE-
    20 USC Sec. 1080a                                           01/03/2007

-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. 1080a. Reports to credit bureaus and institutions of higher
      education

-STATUTE-
    (a) Agreements to exchange information
      For the purpose of promoting responsible repayment of loans
    covered by Federal loan insurance pursuant to this part or covered
    by a guaranty agreement pursuant to section 1078 of this title, the
    Secretary, each guaranty agency, eligible lender, and subsequent
    holder shall enter into agreements with credit bureau organizations
    to exchange information concerning student borrowers, in accordance
    with the requirements of this section. For the purpose of assisting
    such organizations in complying with the Fair Credit Reporting Act
    [15 U.S.C. 1681 et seq.], such agreements may provide for timely
    response by the Secretary (concerning loans covered by Federal loan
    insurance), by a guaranty agency, eligible lender, or subsequent
    holder (concerning loans covered by a guaranty agreement), or to
    requests from such organizations for responses to objections raised
    by borrowers. Subject to the requirements of subsection (c) of this
    section, such agreements shall require the Secretary, the guaranty
    agency, eligible lender, or subsequent holder, as appropriate, to
    disclose to such organizations, with respect to any loan under this
    part that has not been repaid by the borrower - 
        (1) the total amount of loans made to any borrower under this
      part and the remaining balance of the loans;
        (2) information concerning the date of any default on the loan
      and the collection of the loan, including information concerning
      the repayment status of any defaulted loan on which the Secretary
      has made a payment pursuant to section 1080(a) of this title or
      the guaranty agency has made a payment to the previous holder of
      the loan; and
        (3) the date of cancellation of the note upon completion of
      repayment by the borrower of the loan or payment by the Secretary
      pursuant to section 1087 of this title.
    (b) Additional information
      Such agreements may also provide for the disclosure by such
    organizations to the Secretary or a guaranty agency, whichever
    insures or guarantees a loan, upon receipt of a notice under
    subsection (a)(2) of this section that such a loan is in default,
    of information concerning the borrower's location or other
    information which may assist the Secretary, the guaranty agency,
    the eligible lender, or the subsequent holder in collecting the
    loan.
    (c) Contents of agreements
      Agreements entered into pursuant to this section shall contain
    such provisions as may be necessary to ensure that - 
        (1) no information is disclosed by the Secretary or the
      guaranty agency, eligible lender, or subsequent holder unless its
      accuracy and completeness have been verified and the Secretary or
      the guaranty agency has determined that disclosure would
      accomplish the purpose of this section;
        (2) as to any information so disclosed, such organizations will
      be promptly notified of, and will promptly record, any change
      submitted by the Secretary, the guaranty agency, eligible lender,
      or subsequent holder with respect to such information, or any
      objections by the borrower with respect to any such information,
      as required by section 611 of the Fair Credit Reporting Act (15
      U.S.C. 1681i);
        (3) no use will be made of any such information which would
      result in the use of collection practices with respect to such a
      borrower that are not fair and reasonable or that involve
      harassment, intimidation, false or misleading representations, or
      unnecessary communication concerning the existence of such loan
      or concerning any such information; and
        (4) with regard to notices of default under subsection (a)(2)
      of this section, except for disclosures made to obtain the
      borrower's location, the Secretary, or the guaranty agency,
      eligible lender, or subsequent holder whichever is applicable (A)
      shall not disclose any such information until the borrower has
      been notified that such information will be disclosed to credit
      bureau organizations unless the borrower enters into repayment of
      his or her loan, but (B) shall, if the borrower has not entered
      into repayment within a reasonable period of time, but not less
      than 30 days, from the date such notice has been sent to the
      borrower, disclose the information required by this subsection.
    (d) Contractor status of participants
      A guaranty agency, eligible lender, or subsequent holder or
    credit bureau organization which discloses or receives information
    under this section shall not be considered a Government contractor
    within the meaning of section 552a of title 5.
    (e) Disclosure to institutions
      The Secretary and each guaranty agency, eligible lender, and
    subsequent holder of a loan are authorized to disclose information
    described in subsections (a) and (b) of this section concerning
    student borrowers to the eligible institutions such borrowers
    attend or previously attended. To further the purpose of this
    section, an eligible institution may enter into an arrangement with
    any or all of the holders of delinquent loans made to borrowers who
    attend or previously attended such institution for the purpose of
    providing current information regarding the borrower's location or
    employment or for the purpose of assisting the holder in contacting
    and influencing borrowers to avoid default.
    (f) Duration of authority
      Notwithstanding paragraphs (4) and (6) (!1) of subsection (a) of
    section 605 of the Fair Credit Reporting Act (15 U.S.C.
    1681c(a)(4), (a)(6)), a consumer reporting agency may make a report
    containing information received from the Secretary or a guaranty
    agency, eligible lender, or subsequent holder regarding the status
    of a borrower's defaulted account on a loan guaranteed under this
    part until - 

        (1) 7 years from the date on which the Secretary or the agency
      paid a claim to the holder on the guaranty;
        (2) 7 years from the date the Secretary, guaranty agency,
      eligible lender, or subsequent holder first reported the account
      to the consumer reporting agency; or
        (3) in the case of a borrower who reenters repayment after
      defaulting on a loan and subsequently goes into default on such
      loan, 7 years from the date the loan entered default such
      subsequent time.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 430A, as added Pub. L. 99-498,
    title IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1398; amended Pub.
    L. 100-50, Sec. 10(v), June 3, 1987, 101 Stat. 346; Pub. L. 102-
    325, title IV, Sec. 424, July 23, 1992, 106 Stat. 543; Pub. L. 103-
    208, Sec. 2(c)(52), Dec. 20, 1993, 107 Stat. 2467.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Fair Credit Reporting Act, referred to in subsec. (a), is
    title VI of Pub. L. 90-321, as added by Pub. L. 91-508, title VI,
    Sec. 601, Oct. 26, 1970, 84 Stat. 1127, as amended, which is
    classified generally to subchapter III (Sec. 1681 et seq.) of
    chapter 41 of Title 15, Commerce and Trade. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1601 of Title 15 and Tables.
      Paragraph (6) of subsection (a) of section 605 of the Fair Credit
    Reporting Act, referred to in subsec. (f), was redesignated
    paragraph (5) of subsection (a) of section 605 of the Act by Pub.
    L. 105-347, Sec. 5(4), Nov. 2, 1998, 112 Stat. 3211.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1080a, Pub. L. 89-329, title IV, Sec. 430A, as
    added Pub. L. 99-272, title XVI, Sec. 16023, Apr. 7, 1986, 100
    Stat. 349; amended Pub. L. 99-320, Sec. 2(c), May 23, 1986, 100
    Stat. 491, related to reports to credit bureaus and institutions of
    higher education, prior to the general revision of this part by
    Pub. L. 99-498.

                                AMENDMENTS                            
      1993 - Subsec. (f)(1). Pub. L. 103-208 substituted a semicolon
    for the comma at end.
      1992 - Subsec. (f). Pub. L. 102-325 struck out "or" at end of
    par. (1), added pars. (2) and (3), and struck out former par. (2)
    which read as follows: "with regard to an account on a loan on
    which the Secretary or the guaranty agency has paid a claim but not
    reported the account to a consumer reporting agency on or before
    October 1, 1985, 7 years from that date."
      1987 - Subsec. (e). Pub. L. 100-50 inserted sentence at end
    permitting an eligible institution to enter into arrangements with
    holders of delinquent loans made to borrowers for purpose of
    providing current information on borrower's location or employment
    or to assist holder in contacting and influencing borrower to avoid
    default.

                     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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1081                                            01/03/2007

-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. 1081. Insurance fund

-STATUTE-
    (a) Establishment
      There is hereby established a student loan insurance fund
    (hereinafter in this section called the "fund") which shall be
    available without fiscal year limitation to the Secretary for
    making payments in connection with the default of loans insured by
    the Secretary under this part, or in connection with payments under
    a guaranty agreement under section 1078(c) of this title. All
    amounts received by the Secretary as premium charges for insurance
    and as receipts, earnings, or proceeds derived from any claim or
    other assets acquired by the Secretary in connection with
    operations under this part, any excess advances under section 1072
    of this title, and any other moneys, property, or assets derived by
    the Secretary from operations in connection with this section,
    shall be deposited in the fund. All payments in connection with the
    default of loans insured by the Secretary under this part, or in
    connection with such guaranty agreements shall be paid from the
    fund. Moneys in the fund not needed for current operations under
    this section may be invested in bonds or other obligations
    guaranteed as to principal and interest by the United States.
    (b) Borrowing authority
      If at any time the moneys in the fund are insufficient to make
    payments in connection with the default of any loan insured by the
    Secretary under this part, or in connection with any guaranty
    agreement made under section 1078(c) of this title, the Secretary
    is authorized, to the extent provided in advance by appropriations
    Acts, to issue to the Secretary of the Treasury notes or other
    obligations in such forms and denominations, bearing such
    maturities, and subject to such terms and conditions as may be
    prescribed by the Secretary with the approval of the Secretary of
    the Treasury. Such notes or other obligations shall bear interest
    at a rate determined by the Secretary of the Treasury, taking into
    consideration the current average market yield on outstanding
    marketable obligations of the United States of comparable
    maturities during the month preceding the issuance of the notes or
    other obligations. The Secretary of the Treasury is authorized and
    directed to purchase any notes and other obligations issued
    hereunder and for that purpose is authorized to use as a public
    debt transaction the proceeds from the sale of any securities
    issued under chapter 31 of title 31, and the purposes for which
    securities may be issued under that chapter, are extended to
    include any purchase of such notes and obligations. The Secretary
    of the Treasury may at any time sell any of the notes or other
    obligations acquired under this subsection. All redemptions,
    purchases, and sales by the Secretary of the Treasury of such notes
    or other obligations shall be treated as public debt transactions
    of the United States. Sums borrowed under the subsection shall be
    deposited in the fund and redemption of such notes and obligations
    shall be made by the Secretary from such fund.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 431, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1400; amended Pub. L. 100-
    50, Sec. 10(w), June 3, 1987, 101 Stat. 346.)

-COD-
                               CODIFICATION                           
      In subsec. (b), "chapter 31 of title 31" and "that chapter"
    substituted for "the Second Liberty Bond Act, as amended" and "that
    Act, as amended", respectively, on authority of Pub. L. 97-258,
    Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of
    which enacted Title 31, Money and Finance.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1081, Pub. L. 89-329, title IV, Sec. 431, Nov. 8,
    1965, 79 Stat. 1245; Pub. L. 90-460, Sec. 3(c), Aug. 3, 1968, 82
    Stat. 638; Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 1976, 90
    Stat. 2126; Pub. L. 96-374, title XIII, Sec. 1391(a)(1), Oct. 3,
    1980, 94 Stat. 1503, related to a student loan insurance fund,
    prior to the general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1987 - Subsec. (a). Pub. L. 100-50 substituted "section 1072 of
    this title" for "section 1072(a)(4)(C) 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.

               FEDERAL FAMILY EDUCATION LOAN INSURANCE FUND           
      Pub. L. 105-244, title IV, Sec. 434, Oct. 7, 1998, 112 Stat.
    1711, provided that: "Any funds in the insurance fund, as
    established under section 431 of the Higher Education Act of 1965
    (20 U.S.C. 1081), on the date of enactment of this Act [Oct. 7,
    1998] shall be transferred to and deposited in the Treasury. All
    funds received by the Secretary of Education under subsection (a)
    of such section after the date of enactment of this Act shall be
    deposited into the fund in accordance with such subsection."

     TRANSFER OF ASSETS AND LIABILITIES OF THE VOCATIONAL STUDENT LOAN
                              INSURANCE FUND
      All assets and liabilities of the vocational student loan
    insurance fund transferred to the student loan insurance fund, see
    section 116(c)(2) of Pub. L. 90-575, set out as a note under former
    section 981 et seq. of this title.

-End-



-CITE-
    20 USC Sec. 1082                                            01/03/2007

-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. 1082. Legal powers and responsibilities

-STATUTE-
    (a) General powers
      In the performance of, and with respect to, the functions,
    powers, and duties, vested in him by this part, the Secretary may -
    
        (1) prescribe such regulations as may be necessary to carry out
      the purposes of this part, including regulations applicable to
      third party servicers (including regulations concerning financial
      responsibility standards for, and the assessment of liabilities
      for program violations against, such servicers) to establish
      minimum standards with respect to sound management and
      accountability of programs under this part, except that in no
      case shall damages be assessed against the United States for the
      actions or inactions of such servicers;
        (2) 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 action instituted under this subsection by or
      against the Secretary shall survive notwithstanding any change in
      the person occupying the office of Secretary or any vacancy in
      that office; but no attachment, injunction, garnishment, or other
      similar process, mesne or final, shall be issued against the
      Secretary or property under the Secretary's control and nothing
      herein shall be construed to except litigation arising out of
      activities under this part from the application of sections 509,
      517, 547, and 2679 of title 28;
        (3) include in any contract for Federal loan insurance such
      terms, conditions, and covenants relating to repayment of
      principal and payment of interest, relating to the Secretary's
      obligations and rights to those of eligible lenders, and
      borrowers in case of default, and relating to such other matters
      as the Secretary determines to be necessary to assure that the
      purposes of this part will be achieved; and any term, condition,
      and covenant made pursuant to this paragraph or pursuant to any
      other provision of this part may be modified by the Secretary,
      after notice and opportunity for a hearing, if the Secretary
      finds that the modification is necessary to protect the United
      States from the risk of unreasonable loss;
        (4) subject to the specific limitations in this part, consent
      to modification, with respect to rate of interest, time of
      payment of any installment of principal and interest or any
      portion thereof, or any other provision of any note or other
      instrument evidencing a loan which has been insured by the
      Secretary under this part;
        (5) enforce, pay, or compromise, any claim on, or arising
      because of, any such insurance or any guaranty agreement under
      section 1078(c) of this title; and
        (6) enforce, pay, compromise, waive, or release any right,
      title, claim, lien, or demand, however acquired, including any
      equity or any right of redemption.
    (b) Financial operations responsibilities
      The Secretary shall, with respect to the financial operations
    arising by reason of this part prepare annually and submit a budget
    program as provided for wholly owned Government corporations by
    chapter 91 of title 31. The transactions of the Secretary,
    including the settlement of insurance claims and of claims for
    payments pursuant to section 1078 of this title, and transactions
    related thereto and vouchers approved by the Secretary in
    connection with such transactions, shall be final and conclusive
    upon all accounting and other officers of the Government.
    (c) Data collection
      (1) Collection by category of loan
        (A) For loans insured after December 31, 1976, or in the case
      of each insurer after such earlier date where the data required
      by this subsection are available, the Secretary and all other
      insurers under this part shall collect and accumulate all data
      relating to (i) loan volume insured and (ii) defaults reimbursed
      or default rates according to the categories of loans listed in
      subparagraph (B) of this paragraph.
        (B) The data indicated in subparagraph (A) of this paragraph
      shall be accumulated according to the category of lender making
      the loan and shall be accumulated separately for lenders who are
      (i) eligible institutions, (ii) State or private, nonprofit
      direct lenders, (iii) commercial financial institutions who are
      banks, savings and loan associations, or credit unions, and (iv)
      all other types of institutions or agencies.
        (C) The Secretary may designate such additional subcategories
      within the categories specified in subparagraph (B) of this
      paragraph as the Secretary deems appropriate.
        (D) The category or designation of a loan shall not be changed
      for any reason, including its purchase or acquisition by a lender
      of another category.
      (2) Collection and reporting requirements
        (A) The Secretary shall collect data under this subsection from
      all insurers under this part and shall publish not less often
      than once every fiscal year a report showing loan volume
      guaranteed and default data for each category specified in
      subparagraph (B) of paragraph (1) of this subsection and for the
      total of all lenders.
        (B) The reports specified in subparagraph (A) of this paragraph
      shall include a separate report for each insurer under this part
      including the Secretary, and where an insurer insures loans for
      lenders in more than one State, such insurer's report shall list
      all data separately for each State.
      (3) Institutional, public, or nonprofit lenders
        For purposes of clarity in communications, the Secretary shall
      separately identify loans made by the lenders referred to in
      clause (i) and loans made by the lenders referred to in clause
      (ii) of paragraph (1)(B) of this subsection.
    (d) Delegation
      (1) Regional offices
        The functions of the Secretary under this part listed in
      paragraph (2) of this subsection may be delegated to employees in
      the regional office of the Department.
      (2) Delegable functions
        The functions which may be delegated pursuant to this
      subsection are - 
          (A) reviewing applications for loan insurance under section
        1079 of this title and issuing contracts for Federal loan
        insurance, certificates of insurance, and certificates of
        comprehensive insurance coverage to eligible lenders which are
        financial or credit institutions subject to examination and
        supervision by an agency of the United States or of any State;
          (B) receiving claims for payments under section 1080(a) of
        this title, examining those claims, and pursuant to regulations
        of the Secretary, approving claims for payment, or requiring
        lenders to take additional collection action as a condition for
        payment of claims; and
          (C) certifying to the central office when collection of
        defaulted loans has been completed, compromising or agreeing to
        the modification of any Federal claim against a borrower
        (pursuant to regulations of the Secretary issued under
        subsection (a) of this section), and recommending litigation
        with respect to any such claim.
    (e) Use of information on borrowers
      Notwithstanding any other provision of law, the Secretary may
    provide to eligible lenders, and to any guaranty agency having a
    guaranty agreement under section 1078(c)(1) of this title, any
    information with respect to the names and addresses of borrowers or
    other relevant information which is available to the Secretary,
    from whatever source such information may be derived.
    (f) Audit of financial transactions
      (1) Comptroller General and Inspector General authority
        The Comptroller General and the Inspector General of the
      Department of Education shall each have the authority to conduct
      an audit of the financial transactions of - 
          (A) any guaranty agency operating under an agreement with the
        Secretary pursuant to section 1078(b) of this title;
          (B) any eligible lender as defined in section 1085(d)(1) of
        this title;
          (C) a representative sample of eligible lenders under this
        part, upon the request of the Committee on Education and the
        Workforce of the House of Representatives or the Committee on
        Labor and Human Resources of the Senate, with respect to the
        payment of the special allowance under section 1087-1 of this
        title in order to evaluate the program authorized by this part.
      (2) Access to records
        For the purpose of carrying out this subsection, the records of
      any entity described in subparagraph (A), (B), (C), or (D) (!1)
      of paragraph (1) shall be available to the Comptroller General
      and the Inspector General of the Department of Education. For the
      purpose of section 716(c) of title 31, such records shall be
      considered to be records to which the Comptroller General has
      access by law, and for the purpose of section 6(a)(4) of the
      Inspector General Act of 1978, such records shall be considered
      to be records necessary in the performance of functions assigned
      by that Act to the Inspector General.

      (3) "Record" defined
        For the purpose of this subsection, the term "record" includes
      any information, document, report, answer, account, paper, or
      other data or documentary evidence.
      (4) Audit procedures
        In conducting audits pursuant to this subsection, the
      Comptroller General and the Inspector General of the Department
      of Education shall audit the records to determine the extent to
      which they, at a minimum, comply with Federal statutes, and rules
      and regulations prescribed by the Secretary, in effect at the
      time that the record was made, and in no case shall the
      Comptroller General or the Inspector General apply subsequently
      determined standards, procedures, or regulations to the records
      of such agency, lender, or Authority.
    (g) Civil penalties
      (1) Authority to impose penalties
        Upon determination, after reasonable notice and opportunity for
      a hearing, that a lender or a guaranty agency - 
          (A) has violated or failed to carry out any provision of this
        part or any regulation prescribed under this part, or
          (B) has engaged in substantial misrepresentation of the
        nature of its financial charges,

      the Secretary may impose a civil penalty upon such lender or
      agency of not to exceed $25,000 for each violation, failure, or
      misrepresentation.
      (2) Limitations
        No civil penalty may be imposed under paragraph (1) of this
      subsection unless the Secretary determines that - 
          (A) the violation, failure, or substantial misrepresentation
        referred to in that paragraph resulted from a violation,
        failure, or misrepresentation that is material; and
          (B) the lender or guaranty agency knew or should have known
        that its actions violated or failed to carry out the provisions
        of this part or the regulations thereunder.
      (3) Correction of failure
        A lender or guaranty agency has no liability under paragraph
      (1) of this subsection if, prior to notification by the Secretary
      under that paragraph, the lender or guaranty agency cures or
      corrects the violation or failure or notifies the person who
      received the substantial misrepresentation of the actual nature
      of the financial charges involved.
      (4) Consideration as single violation
        For the purpose of paragraph (1) of this subsection,
      violations, failures, or substantial misrepresentations arising
      from a specific practice of a lender or guaranty agency, and
      occurring prior to notification by the Secretary under that
      paragraph, shall be deemed to be a single violation, failure, or
      substantial misrepresentation even if the violation, failure, or
      substantial misrepresentation affects more than one loan or more
      than one borrower, or both. The Secretary may only impose a
      single civil penalty for each such violation, failure, or
      substantial misrepresentation.
      (5) Assignees not liable for violations by others
        If a loan affected by a violation, failure, or substantial
      misrepresentation is assigned to another holder, the lender or
      guaranty agency responsible for the violation, failure, or
      substantial misrepresentation shall remain liable for any civil
      money penalty provided for under paragraph (1) of this
      subsection, but the assignee shall not be liable for any such
      civil money penalty.
      (6) Compromise
        Until a matter is referred to the Attorney General, any civil
      penalty under paragraph (1) of this subsection may be compromised
      by the Secretary. In determining the amount of such penalty, or
      the amount agreed upon in compromise, the Secretary shall
      consider the appropriateness of the penalty to the resources of
      the lender or guaranty agency subject to the determination; the
      gravity of the violation, failure, or substantial
      misrepresentation; the frequency and persistence of the
      violation, failure, or substantial misrepresentation; and the
      amount of any losses resulting from the violation, failure, or
      substantial misrepresentation. The amount of such penalty, when
      finally determined, or the amount agreed upon in compromise, may
      be deducted from any sums owing by the United States to the
      lender or agency charged, unless the lender or agency has, in the
      case of a final agency determination, commenced proceedings for
      judicial review within 90 days of the determination, in which
      case the deduction may not be made during the pendency of the
      proceeding.
    (h) Authority of the Secretary to impose and enforce limitations,
      suspensions, and terminations
      (1) Imposition of sanctions
        (A) If the Secretary, after a reasonable notice and opportunity
      for hearing to an eligible lender, finds that the eligible lender
      - 
          (i) has substantially failed - 
            (I) to exercise reasonable care and diligence in the making
          and collecting of loans under the provisions of this part,
            (II) to make the reports or statements under section
          1078(a)(4) of this title, or
            (III) to pay the required loan insurance premiums to any
          guaranty agency, or

          (ii) has engaged in - 
            (I) fraudulent or misleading advertising or in
          solicitations that have resulted in the making of loans
          insured or guaranteed under this part to borrowers who are
          ineligible; or
            (II) the practice of making loans that violate the
          certification for eligibility provided in section 1078 of
          this title,

      the Secretary shall limit, suspend, or terminate that lender from
      participation in the insurance programs operated by guaranty
      agencies under this part.
        (B) The Secretary shall not lift any such limitation,
      suspension, or termination until the Secretary is satisfied that
      the lender's failure under subparagraph (A)(i) of this paragraph
      or practice under subparagraph (A)(ii) of this paragraph has
      ceased and finds that there are reasonable assurances that the
      lender will - 
          (i) exercise the necessary care and diligence,
          (ii) comply with the requirements described in subparagraph
        (A)(i), or
          (iii) cease to engage in the practices described in
        subparagraph (A)(ii),

      as the case may be.
      (2) Review of sanctions on lenders
        (A) The Secretary shall review each limitation, suspension, or
      termination imposed by any guaranty agency pursuant to section
      1078(b)(1)(U) of this title within 60 days after receipt by the
      Secretary of a notice from the guaranty agency of the imposition
      of such limitation, suspension, or termination, unless the right
      to such review is waived in writing by the lender. The Secretary
      shall uphold the imposition of such limitation, suspension, or
      termination in the student loan insurance program of each of the
      guaranty agencies under this part, and shall notify such guaranty
      agencies of such sanction - 
          (i) if such review is waived; or
          (ii) if such review is not waived, unless the Secretary
        determines that the limitation, suspension, or termination was
        not imposed in accordance with requirements of such section.

        (B) The Secretary's review under this paragraph of the
      limitation, suspension, or termination imposed by a guaranty
      agency pursuant to section 1078(b)(1)(U) of this title shall be
      limited to - 
          (i) a review of the written record of the proceedings in
        which the guaranty agency imposed such sanctions; and
          (ii) a determination as to whether the guaranty agency
        complied with section 1078(b)(1)(U) of this title and any
        notice and hearing requirements prescribed in regulations of
        the Secretary under this part.

        (C) The Secretary shall not lift any such sanction until the
      Secretary is satisfied that the lender has corrected the failures
      which led to the limitation, suspension, or termination, and
      finds that there are reasonable assurances that the lender will,
      in the future, comply with the requirements of this part. The
      Secretary shall notify each guaranty agency of the lifting of any
      such sanction.
      (3) Review of sanctions on eligible institutions
        (A) The Secretary shall review each limitation, suspension, or
      termination imposed by any guaranty agency pursuant to section
      1078(b)(1)(T) of this title within 60 days after receipt by the
      Secretary of a notice from the guaranty agency of the imposition
      of such limitation, suspension, or termination, unless the right
      to such review is waived in writing by the institution. The
      Secretary shall uphold the imposition of such limitation,
      suspension, or termination in the student loan insurance program
      of each of the guaranty agencies under this part, and shall
      notify such guaranty agencies of such sanctions - 
          (i) if such review is waived; or
          (ii) if such review is not waived, unless the Secretary
        determines that the limitation, suspension, or termination was
        not imposed in accordance with requirements of such section.

        (B) The Secretary's review under this paragraph of the
      limitation, suspension, or termination imposed by a guaranty
      agency pursuant to section 1078(b)(1)(T) of this title shall be
      limited to - 
          (i) a review of the written record of the proceedings in
        which the guaranty agency imposed such sanctions; and
          (ii) a determination as to whether the guaranty agency
        complied with section 1078(b)(1)(T) of this title and any
        notice and hearing requirements prescribed in regulations of
        the Secretary under this part.

        (C) The Secretary shall not lift any such sanction until the
      Secretary is satisfied that the institution has corrected the
      failures which led to the limitation, suspension, or termination,
      and finds that there are reasonable assurances that the
      institution will, in the future, comply with the requirements of
      this part. The Secretary shall notify each guaranty agency of the
      lifting of any such sanction.
    (i) Authority to sell defaulted loans
      In the event that all other collection efforts have failed, the
    Secretary is authorized to sell defaulted student loans assigned to
    the United States under this part to collection agencies, eligible
    lenders, guaranty agencies, or other qualified purchaser on such
    terms as the Secretary determines are in the best financial
    interests of the United States. A loan may not be sold pursuant to
    this subsection if such loan is in repayment status.
    (j) Authority of Secretary to take emergency actions against
      lenders
      (1) Imposition of sanctions
        If the Secretary - 
          (A) receives information, determined by the Secretary to be
        reliable, that a lender is violating any provision of this
        subchapter and part C of subchapter I of chapter 34 of title
        42, any regulation prescribed under this subchapter and part C
        of subchapter I of chapter 34 of title 42, or any applicable
        special arrangement, agreement, or limitation;
          (B) determines that immediate action is necessary to prevent
        misuse of Federal funds; and
          (C) determines that the likelihood of loss outweighs the
        importance of following the limitation, suspension, or
        termination procedures authorized in subsection (h) of this
        section;

      the Secretary shall, effective on the date on which a notice and
      statement of the basis of the action is mailed to the lender (by
      registered mail, return receipt requested), take emergency action
      to stop the issuance of guarantee commitments and the payment of
      interest benefits and special allowance to the lender.
      (2) Length of emergency action
        An emergency action under this subsection may not exceed 30
      days unless a limitation, suspension, or termination proceeding
      is initiated against the lender under subsection (h) of this
      section before the expiration of that period.
      (3) Opportunity to show cause
        The Secretary shall provide the lender, if it so requests, an
      opportunity to show cause that the emergency action is
      unwarranted.
    (k) Program of assistance for borrowers
      (1) In general
        The Secretary shall undertake a program to encourage
      corporations and other private and public employers, including
      the Federal Government, to assist borrowers in repaying loans
      received under this subchapter and part C of subchapter I of
      chapter 34 of title 42, including providing employers with
      options for payroll deduction of loan payments and offering loan
      repayment matching provisions as part of employee benefit
      packages.
      (2) Publication
        The Secretary shall publicize models for providing the
      repayment assistance described in paragraph (1) and each year
      select entities that deserve recognition, through means devised
      by the Secretary, for the development of innovative plans for
      providing such assistance to employees.
      (3) Recommendation
        The Secretary shall recommend to the appropriate committees in
      the Senate and House of Representatives changes to statutes that
      could be made in order to further encourage such efforts.
    (l) Uniform administrative and claims procedures
      (1) In general
        The Secretary shall, by regulation developed in consultation
      with guaranty agencies, lenders, institutions of higher
      education, secondary markets, students, third party servicers and
      other organizations involved in providing loans under this part,
      prescribe standardized forms and procedures regarding - 
          (A) origination of loans;
          (B) electronic funds transfer;
          (C) guaranty of loans;
          (D) deferments;
          (E) forbearance;
          (F) servicing;
          (G) claims filing;
          (H) borrower status change and anticipated graduation date;
        and
          (I) cures.
      (2) Special rules
        (A) The forms and procedures described in paragraph (1) shall
      include all aspects of the loan process as such process involves
      eligible lenders and guaranty agencies and shall be designed to
      minimize administrative costs and burdens (other than the costs
      and burdens involved in the transition to new forms and
      procedures) involved in exchanges of data to and from borrowers,
      schools, lenders, secondary markets, and the Department.
        (B) Nothing in this paragraph shall be construed to limit the
      development of electronic forms and procedures.
      (3) Simplification requirements
        Such regulations shall include - 
          (A) standardization of computer formats, forms design, and
        guaranty agency procedures relating to the origination,
        servicing, and collection of loans made under this part;
          (B) authorization of alternate means of document retention,
        including the use of microfilm, microfiche, laser disc, compact
        disc, and other methods allowing the production of a facsimile
        of the original documents;
          (C) authorization of the use of computer or similar
        electronic methods of maintaining records relating to the
        performance of servicing, collection, and other regulatory
        requirements under this chapter; and
          (D) authorization and implementation of electronic data
        linkages for the exchange of information to and from lenders,
        guarantors, institutions of higher education, third party
        servicers, and the Department of Education for student status
        confirmation reports, claim filing, interest and special
        allowance billing, deferment processing, and all other
        administrative steps relating to loans made pursuant to this
        part where using electronic data linkage is feasible.
      (4) Additional recommendations
        The Secretary shall review regulations prescribed pursuant to
      paragraph (1) and seek additional recommendations from guaranty
      agencies, lenders, institutions of higher education, students,
      secondary markets, third party servicers and other organizations
      involved in providing loans under this part, not less frequently
      than annually, for additional methods of simplifying and
      standardizing the administration of the programs authorized by
      this part.
    (m) Common forms and formats
      (1) Common guaranteed student loan application form and
        promissory note
        (A) In general
          The Secretary, in cooperation with representatives of
        guaranty agencies, eligible lenders, and organizations involved
        in student financial assistance, shall prescribe common
        application forms and promissory notes, or master promissory
        notes, to be used for applying for loans under this part.
        (B) Requirements
          The forms prescribed by the Secretary shall - 
            (i) use clear, concise, and simple language to facilitate
          understanding of loan terms and conditions by applicants;
            (ii) be formatted to require the applicant to clearly
          indicate a choice of lender; and (!2)

        (C) Free application form
          For academic year 1999-2000 and succeeding academic years,
        the Secretary shall prescribe the form developed under section
        1090 of this title as the application form under this part,
        other than for loans under sections 1078-2 and 1078-3 of this
        title.
        (D) Master promissory note
          (i) In general
            The Secretary shall develop and require the use of master
          promissory note forms for loans made under this part and part
          C of this subchapter. Such forms shall be available for
          periods of enrollment beginning not later than July 1, 2000.
          Each form shall allow eligible borrowers to receive, in
          addition to initial loans, additional loans for the same or
          subsequent periods of enrollment through a student
          confirmation process approved by the Secretary. Such forms
          shall be used for loans made under this part or part C of
          this subchapter as directed by the Secretary.
          (ii) Consultation
            In developing the master promissory note under this
          subsection, the Secretary shall consult with representatives
          of guaranty agencies, eligible lenders, institutions of
          higher education, students, and organizations involved in
          student financial assistance.
          (iii) Sale; assignment; enforceability
            Notwithstanding any other provision of law, each loan made
          under a master promissory note under this subsection may be
          sold or assigned independently of any other loan made under
          the same promissory note and each such loan shall be
          separately enforceable in all Federal and State courts on the
          basis of an original or copy of the master promissory note in
          accordance with the terms of the master promissory note.
        (E) Perfection of security interests in student loans
          (i) In general
            Notwithstanding the provisions of any State law to the
          contrary, including the Uniform Commercial Code as in effect
          in any State, a security interest in loans made under this
          part, on behalf of any eligible lender (as defined in section
          1085(d) of this title) shall attach, be perfected, and be
          assigned priority in the manner provided by the applicable
          State's law for perfection of security interests in accounts,
          as such law may be amended from time to time (including
          applicable transition provisions). If any such State's law
          provides for a statutory lien to be created in such loans,
          such statutory lien may be created by the entity or entities
          governed by such State law in accordance with the applicable
          statutory provisions that created such a statutory lien.
          (ii) Collateral description
            In addition to any other method for describing collateral
          in a legally sufficient manner permitted under the laws of
          the State, the description of collateral in any financing
          statement filed pursuant to this subparagraph shall be deemed
          legally sufficient if it lists such loans, or refers to
          records (identifying such loans) retained by the secured
          party or any designee of the secured party identified in such
          financing statement, including the debtor or any loan
          servicer.
          (iii) Sales
            Notwithstanding clauses (i) and (ii) and any provisions of
          any State law to the contrary, other than any such State's
          law providing for creation of a statutory lien, an outright
          sale of loans made under this part shall be effective and
          perfected automatically upon attachment as defined in the
          Uniform Commercial Code of such State.
      (2) Common deferment form
        The Secretary, in cooperation with representatives of guaranty
      agencies, institutions of higher education, and lenders involved
      in loans made under this part, shall prescribe a common deferment
      reporting form to be used for the processing of deferments of
      loans made under this subchapter and part C of subchapter I of
      chapter 34 of title 42.
      (3) Common reporting formats
        The Secretary shall promulgate standards including necessary
      rules, regulations (including the definitions of all relevant
      terms), and procedures so as to require all lenders and guaranty
      agencies to report information on all aspects of loans made under
      this part in uniform formats, so as to permit the direct
      comparison of data submitted by individual lenders, servicers, or
      guaranty agencies.
      (4) Electronic forms
        Nothing in this section shall be construed to limit the
      development and use of electronic forms and procedures.
    (n) Default reduction management
      (1) Authorization
        There are authorized to be appropriated $25,000,000 for fiscal
      year 1999 and each of the four succeeding fiscal years, for the
      Secretary to expend for default reduction management activities
      for the purposes of establishing a performance measure that will
      reduce defaults by 5 percent relative to the prior fiscal year.
      Such funds shall be in addition to, and not in lieu of, other
      appropriations made for such purposes.
      (2) Allowable activities
        Allowable activities for which such funds shall be expended by
      the Secretary shall include the following: (A) program reviews;
      (B) audits; (C) debt management programs; (D) training
      activities; and (E) such other management improvement activities
      approved by the Secretary.
      (3) Plan for use required
        The Secretary shall submit a plan, for inclusion in the
      materials accompanying the President's budget each fiscal year,
      detailing the expenditure of funds authorized by this section to
      accomplish the 5 percent reduction in defaults. At the conclusion
      of the fiscal year, the Secretary shall report the Secretary's
      findings and activities concerning the expenditure of funds and
      whether the performance measure was met. If the performance
      measure was not met, the Secretary shall report the following:
          (A) why the goal was not met, including an indication of any
        managerial deficiencies or of any legal obstacles;
          (B) plans and a schedule for achieving the established
        performance goal;
          (C) recommended legislative or regulatory changes necessary
        to achieve the goal; and
          (D) if the performance standard or goal is impractical or
        infeasible, why that is the case and what action is
        recommended, including whether the goal should be changed or
        the program altered or eliminated.

      This report shall be submitted to the Appropriations Committees
      of the House of Representatives and the Senate and to the
      Committee on Education and the Workforce of the House of
      Representatives and the Committee on Labor and Human Resources of
      the Senate.
    (o) Consequences of guaranty agency insolvency
      In the event that the Secretary has determined that a guaranty
    agency is unable to meet its insurance obligations under this part,
    the holder of loans insured by the guaranty agency may submit
    insurance claims directly to the Secretary and the Secretary shall
    pay to the holder the full insurance obligation of the guaranty
    agency, in accordance with insurance requirements no more stringent
    than those of the guaranty agency. Such arrangements shall continue
    until the Secretary is satisfied that the insurance obligations
    have been transferred to another guarantor who can meet those
    obligations or a successor will assume the outstanding insurance
    obligations.
    (p) Reporting requirement
      All officers and directors, and those employees and paid
    consultants of eligible institutions, eligible lenders, guaranty
    agencies, loan servicing agencies, accrediting agencies or
    associations, State licensing agencies or boards, and entities
    acting as secondary markets (including the Student Loan Marketing
    Association), who are engaged in making decisions as to the
    administration of any program or funds under this subchapter and
    part C of subchapter I of chapter 34 of title 42 or as to the
    eligibility of any entity or individual to participate under this
    subchapter and part C of subchapter I of chapter 34 of title 42,
    shall report to the Secretary, in such manner and at such time as
    the Secretary shall require, on any financial interest which such
    individual may hold in any other entity participating in any
    program assisted under this subchapter and part C of subchapter I
    of chapter 34 of title 42.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 432, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1401; amended Pub. L. 100-
    50, Sec. 10(x), (y), June 3, 1987, 101 Stat. 346; Pub. L. 101-239,
    title II, Sec. 2006(a), Dec. 19, 1989, 103 Stat. 2118; Pub. L. 102-
    325, title IV, Sec. 425, July 23, 1992, 106 Stat. 543; Pub. L. 103-
    208, Sec. 2(k)(2), (3), Dec. 20, 1993, 107 Stat. 2485; Pub. L. 104-
    66, title I, Sec. 1042(e), Dec. 21, 1995, 109 Stat. 716; Pub. L.
    105-244, title IV, Sec. 427, Oct. 7, 1998, 112 Stat. 1702; Pub. L.
    106-554, Sec. 1(a)(1) [title III, Sec. 311], Dec. 21, 2000, 114
    Stat. 2763, 2763A-46; Pub. L. 109-171, title VIII, Sec. 8014(j),
    Feb. 8, 2006, 120 Stat. 171.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Subparagraph (D) of paragraph (1) of subsec. (f), referred to in
    subsec. (f)(2), was repealed by Pub. L. 105-244, title IV, Sec.
    427(a)(3), Oct. 7, 1998, 112 Stat. 1702.
      The Inspector General Act of 1978, referred to in subsec. (f)(2),
    is Pub. L. 95-452, Oct. 12, 1978, 92 Stat. 1101, as amended, which
    is set out in the Appendix to Title 5, Government Organization and
    Employees.
      This chapter, referred to in subsec. (l)(3)(C), was in the
    original "this Act", meaning Pub. L. 89-329, as amended, known as
    the Higher Education Act of 1965. For complete classification of
    this Act to the Code, see Short Title note set out under section
    1001 of this title and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1082, Pub. L. 89-329, title IV, Sec. 432, Nov. 8,
    1965, 79 Stat. 1246; Pub. L. 90-460, Sec. 3(d), Aug. 3, 1968, 82
    Stat. 638; Pub. L. 93-604, title VII, Sec. 705(a), Jan. 2, 1975, 88
    Stat. 1964; Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 1976, 90
    Stat. 2127; Pub. L. 96-88, title III, Sec. 301(b)(2), Oct. 17,
    1979, 93 Stat. 678; Pub. L. 96-374, title IV, Sec. 416(c), title
    XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1421, 1503; Pub. L.
    99-272, title XVI, Sec. 16024, Apr. 7, 1986, 100 Stat. 351, related
    to functions, powers, and duties of Secretary, prior to the general
    revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      2006 - Subsec. (l)(1)(H). Pub. L. 109-171 inserted "and
    anticipated graduation date" after "status change".
      2000 - Subsec. (m)(1)(D)(iv). Pub. L. 106-554, Sec. 1(a)(1)
    [title III, Sec. 311(1)], struck out heading and text of cl. (iv).
    Text read as follows: "Notwithstanding the provisions of any State
    law to the contrary, including the Uniform Commercial Code as in
    effect in any State, a security interest in loans made under this
    part created on behalf of any eligible lender as defined in section
    1085(d) of this title may be perfected either through the taking of
    possession of such loans (which can be through taking possession of
    an original or copy of the master promissory note) or by the filing
    of notice of such security interest in such loans in the manner
    provided by such State law for perfection of security interests in
    accounts."
      Subsec. (m)(1)(E). Pub. L. 106-554, Sec. 1(a)(1) [title III, Sec.
    311(2)], added subpar. (E).
      1998 - Subsec. (f)(1)(B). Pub. L. 105-244, Sec. 427(a)(1),
    substituted "section 1085(d)(1)" for "section 1085(d)(1)(D), (F),
    or (H)".
      Subsec. (f)(1)(C). Pub. L. 105-244, Sec. 427(a)(2), substituted
    "and the Workforce" for "and Labor" and a period for "; and" at
    end.
      Subsec. (f)(1)(D). Pub. L. 105-244, Sec. 427(a)(3), struck out
    subpar. (D) which read as follows: "any Authority required to file
    a plan for doing business under section 1087-1(d) of this title."
      Subsec. (k)(3). Pub. L. 105-244, Sec. 427(b), substituted "The
    Secretary" for "Within 1 year after July 23, 1992, the Secretary".
      Subsec. (m)(1)(A). Pub. L. 105-244, Sec. 427(c)(1)(A),
    substituted "common application forms and promissory notes, or
    master promissory notes," for "a common application form and
    promissory note".
      Subsec. (m)(1)(B). Pub. L. 105-244, Sec. 427(c)(1)(B),
    substituted "The forms" for "The form" in introductory provisions
    and struck out cl. (iii) which read as follows: "permit, to the
    maximum extent practicable, application for any loan under this
    part."
      Subsec. (m)(1)(C). Pub. L. 105-244, Sec. 427(c)(1)(C), amended
    heading and text of subpar. (C) generally. Prior to amendment, text
    read as follows: "The Secretary shall approve a form for use not
    later than 360 days after July 23, 1992."
      Subsec. (m)(1)(D). Pub. L. 105-244, Sec. 427(c)(1)(D), amended
    heading and text of subpar. (D) generally. Prior to amendment, text
    read as follows: "Nothing in this section shall be construed to
    limit the development of electronic forms and procedures."
      Subsec. (m)(4). Pub. L. 105-244, Sec. 427(c)(2), added par. (4).
      Subsec. (n)(1). Pub. L. 105-244, Sec. 427(d)(1), substituted
    "1999" for "1993".
      Subsec. (n)(3). Pub. L. 105-244, Sec. 427(d)(2), substituted "and
    the Workforce" for "and Labor" in concluding provisions.
      Subsec. (p). Pub. L. 105-244, Sec. 427(e), struck out "State
    postsecondary reviewing entities designated under subpart 1 of part
    G of this subchapter," after "agencies or boards,".
      1995 - Subsec. (b). Pub. L. 104-66 amended heading and text of
    subsec. (b) generally. Prior to amendment, text read as follows:
    "The Secretary shall, with respect to the financial operations
    arising by reason of this part - 
        "(1) prepare annually and submit a budget program as provided
      for wholly owned Government corporations by chapter 91 of title
      31; and
        "(2) maintain with respect to insurance under this part an
      integral set of accounts and prepare financial statements in
      accordance with generally accepted accounting principles, which
      shall be audited annually by the General Accounting Office in
      conformity with generally accepted Government auditing standards
      except that the transactions of the Secretary, including the
      settlement of insurance claims and of claims for payments
      pursuant to section 1078 of this title, and transactions related
      thereto and vouchers approved by the Secretary in connection with
      such transactions, shall be final and conclusive upon all
      accounting and other officers of the Government."
      1993 - Subsec. (h)(2)(A), (3)(A). Pub. L. 103-208 amended
    directory language of Pub. L. 102-325, Sec. 425(d)(1). See 1992
    Amendment notes below.
      1992 - Subsec. (a)(1). Pub. L. 102-325, Sec. 425(a), inserted
    before semicolon at end ", including regulations applicable to
    third party servicers (including regulations concerning financial
    responsibility standards for, and the assessment of liabilities for
    program violations against, such servicers) to establish minimum
    standards with respect to sound management and accountability of
    programs under this part, except that in no case shall damages be
    assessed against the United States for the actions or inactions of
    such servicers".
      Subsecs. (a)(3), (g)(1). Pub. L. 102-325, Sec. 425(b)(1), (2),
    struck out "on the record" after "for a hearing".
      Subsec. (g)(2). Pub. L. 102-325, Sec. 425(c)(1), amended par. (2)
    generally. Prior to amendment, par. (2) read as follows: "No civil
    penalty may be imposed under paragraph (1) of this subsection
    unless it is determined that the violation, failure, or substantial
    misrepresentation referred to in that paragraph resulted from - 
        "(A)(i) a clear and consistent pattern or practice of
      violations, failures, or substantial misrepresentations in which
      the lender or guaranty agency did not maintain procedures
      reasonably adapted to avoid the violation, failure, or
      substantial misrepresentation;
        "(ii) gross negligence; or
        "(iii) willful actions on the part of the lender or guaranty
      agency; and
        "(B) the violation, failure, or substantial misrepresentation
      is material."
      Subsec. (g)(3). Pub. L. 102-325, Sec. 425(c)(2), substituted
    "notification by the Secretary under that paragraph" for "the
    institution of an action under that paragraph".
      Subsec. (g)(4). Pub. L. 102-325, Sec. 425(c)(3), inserted ", and
    occurring prior to notification by the Secretary under that
    paragraph," after "guaranty agency" and substituted "or both. The"
    for "or both, and the".
      Subsec. (h)(2)(A). Pub. L. 102-325, Sec. 425(d)(1), as amended by
    Pub. L. 103-208, Sec. 2(k)(2), in second sentence substituted "The
    Secretary shall uphold the imposition of such limitation,
    suspension, or termination in the student loan insurance program of
    each of the guaranty agencies under this part, and shall notify
    such guaranty agencies of such sanction" for "The Secretary shall
    disqualify such lender from participation in the student loan
    insurance program of each of the guaranty agencies under this part,
    and notify such guaranty agencies of such disqualification".
      Pub. L. 102-325, Sec. 425(b)(3), in first sentence struck out ",
    in accordance with sections 556 and 557 of title 5," after "The
    Secretary shall".
      Subsec. (h)(2)(B), (C). Pub. L. 102-325, Sec. 425(d)(2), (3),
    added subpar. (B), redesignated former subpar. (B) as (C), and
    substituted "sanction" for "disqualification" in two places.
      Subsec. (h)(3)(A). Pub. L. 102-325, Sec. 425(d)(4), as amended by
    Pub. L. 103-208, Sec. 2(k)(3), in second sentence substituted "The
    Secretary shall uphold the imposition of such limitation,
    suspension, or termination in the student loan insurance program of
    each of the guaranty agencies under this part, and shall notify
    such guaranty agencies of such sanctions" for "The Secretary shall
    disqualify such institution from participation in the student loan
    insurance program of each of the guaranty agencies under this part,
    and notify such guaranty agencies of such disqualification".
      Pub. L. 102-325, Sec. 425(b)(4), in first sentence struck out ",
    in accordance with sections 556 and 557 of title 5," after "The
    Secretary shall".
      Subsec. (h)(3)(B), (C). Pub. L. 102-325, Sec. 425(d)(5), (6),
    added subpar. (B), redesignated former subpar. (B) as (C), and
    substituted "sanction" for "disqualification" in two places.
      Subsecs. (k) to (p). Pub. L. 102-325, Sec. 425(e), added subsecs.
    (k) to (p).
      1989 - Subsec. (j). Pub. L. 101-239 added subsec. (j).
      1987 - Subsec. (f)(4). Pub. L. 100-50, Sec. 10(x), added par.
    (4).
      Subsec. (g)(2)(A)(i), (B). Pub. L. 100-50, Sec. 10(y),
    substituted "misrepresentation" for "representation".

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 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 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.

-FOOTNOTE-
    (!1) See References in Text note below.

               

    (!2) So in original. The "; and" probably should be a period.


-End-



-CITE-
    20 USC Sec. 1083                                            01/03/2007

-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. 1083. Student loan information by eligible lenders

-STATUTE-
    (a) Required disclosure before disbursement
      Each eligible lender, at or prior to the time such lender
    disburses a loan that is insured or guaranteed under this part
    (other than a loan made under section 1078-3 of this title), shall
    provide thorough and accurate loan information on such loan to the
    borrower in simple and understandable terms. Any disclosure
    required by this subsection may be made by an eligible lender by
    written or electronic means, including as part of the application
    material provided to the borrower, as part of the promissory note
    evidencing the loan, or on a separate written form provided to the
    borrower. Each lender shall provide to each borrower a telephone
    number, and may provide an electronic address, through which
    additional loan information can be obtained. The disclosure shall
    include - 
        (1) a statement prominently and clearly displayed and in bold
      print that the borrower is receiving a loan that must be repaid;
        (2) the name of the eligible lender, and the address to which
      communications and payments should be sent;
        (3) the principal amount of the loan;
        (4) the amount of any charges, such as the origination fee and
      insurance premium, collected by the lender at or prior to the
      disbursal of the loan and whether such charges are deducted from
      the proceeds of the loan or paid separately by the borrower;
        (5) the stated interest rate on the loan;
        (6) the yearly and cumulative maximum amounts that may be
      borrowed;
        (7) an explanation of when repayment of the loan will be
      required and when the borrower will be obligated to pay interest
      that accrues on the loan;
        (8) a statement as to the minimum and maximum repayment term
      which the lender may impose, and the minimum annual payment
      required by law;
        (9) a statement of the total cumulative balance, including the
      loan applied for, owed by the student to that lender, and an
      estimate of the projected monthly payment, given such cumulative
      balance;
        (10) an explanation of any special options the borrower may
      have for loan consolidation or other refinancing of the loan;
        (11) a statement that the borrower has the right to prepay all
      or part of the loan, at any time, without penalty, a statement
      summarizing circumstances in which repayment of the loan or
      interest that accrues on the loan may be deferred, and a brief
      notice of the program for repayment of loans, on the basis of
      military service, pursuant to section 902 of the Department of
      Defense Authorization Act, 1981 (10 U.S.C. 2141, note); (!1)

        (12) a definition of default and the consequences to the
      borrower if the borrower defaults, including a statement that the
      default will be reported to a credit bureau or credit reporting
      agency;
        (13) to the extent practicable, the effect of accepting the
      loan on the eligibility of the borrower for other forms of
      student assistance; and
        (14) an explanation of any cost the borrower may incur in the
      making or collection of the loan.
    (b) Required disclosure before repayment
      Each eligible lender shall, at or prior to the start of the
    repayment period of the student borrower on loans made, insured, or
    guaranteed under this part, disclose to the borrower by written or
    electronic means the information required under this subsection in
    simple and understandable terms. Each eligible lender shall provide
    to each borrower a telephone number, and may provide an electronic
    address, through which additional loan information can be obtained.
    For any loan made, insured, or guaranteed under this part, other
    than a loan made under section 1078-2 or 1078-3 of this title, such
    disclosure required by this subsection shall be made not less than
    30 days nor more than 240 days before the first payment on the loan
    is due from the borrower. The disclosure shall include - 
        (1) the name of the eligible lender, and the address to which
      communications and payments should be sent;
        (2) the scheduled date upon which the repayment period is to
      begin;
        (3) the estimated balance owed by the borrower on the loan or
      loans covered by the disclosure as of the scheduled date on which
      the repayment period is to begin (including, if applicable, the
      estimated amount of interest to be capitalized);
        (4) the stated interest rate on the loan or loans, or the
      combined interest rate of loans with different stated interest
      rates;
        (5) the nature of any fees which may accrue or be charged to
      the borrower during the repayment period;
        (6) the repayment schedule for all loans covered by the
      disclosure including the date the first installment is due, and
      the number, amount, and frequency of required payments;
        (7) an explanation of any special options the borrower may have
      for loan consolidation or other refinancing of the loan and of
      the availability and terms of such other options, except that
      such explanation is not required when the loan being made is a
      consolidation loan under section 1078-3 of this title;
        (8) except as provided in subsection (e) of this section, the
      projected total of interest charges which the borrower will pay
      on the loan or loans, assuming that the borrower makes payments
      exactly in accordance with the repayment schedule; and
        (9) a statement that the borrower has the right to prepay all
      or part of the loan or loans covered by the disclosure at any
      time without penalty.
    (c) Cost of disclosure and consequences of nondisclosure
      Such information shall be available without cost to the borrower.
    The failure of an eligible lender to provide information as
    required by this section shall not (1) relieve a borrower of the
    obligation to repay a loan in accordance with its terms, (2)
    provide a basis for a claim for civil damages, or (3) be deemed to
    abrogate the obligation of the Secretary under a contract of
    insurance or reinsurance, or the obligation of a guaranty agency
    under a contract of guaranty. Nothing in this section shall be
    construed as subjecting the lender to the Truth in Lending Act [15
    U.S.C. 1601 et seq.] with regard to loans made under this part. The
    Secretary may limit, suspend, or terminate the continued
    participation of an eligible lender in making loans under this part
    for failure by that lender to comply with this section.
    (d) Separate statement
      Each eligible lender shall, at the time such lender notifies a
    borrower of approval of a loan which is insured or guaranteed under
    this part, provide the borrower with a separate paper which
    summarizes (in plain English) the rights and responsibilities of
    the borrower with respect to the loan, including a statement of the
    consequences of defaulting on the loan and a statement that each
    borrower who defaults will be reported to a credit bureau. The
    requirement of this subsection shall be in addition to the
    information required by subsection (a) of this section.
    (e) Special disclosure rules on SLS loans and PLUS loans and
      unsubsidized loans
      Loans made under sections 1078-1,(!2) 1078-2, and 1078-8 of this
    title shall not be subject to the disclosure of projected monthly
    payment amounts required under subsection (b)(8) of this section if
    the lender, in lieu of such disclosure, provides the borrower with
    sample projections of monthly repayment amounts assuming different
    levels of borrowing and interest accruals resulting from
    capitalization of interest while the borrower is in school. Such
    sample projections shall disclose the cost to the student of
    capitalizing - 

        (1) principal and interest; and
        (2) interest only.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 433, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1406; amended Pub. L. 100-
    50, Sec. 10(z), June 3, 1987, 101 Stat. 346; Pub. L. 102-325,
    title IV, Sec. 426, July 23, 1992, 106 Stat. 548; Pub. L. 103-208,
    Sec. 2(c)(53), (54), (k)(4), Dec. 20, 1993, 107 Stat. 2468, 2485;
    Pub. L. 105-244, title IV, Sec. 428, Oct. 7, 1998, 112 Stat. 1704.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 902 of the Department of Defense Authorization Act, 1981,
    referred to in subsec. (a)(11), is section 902 of Pub. L. 96-342,
    title IX, Sept. 8, 1980, 94 Stat. 1115, as amended, which was set
    out as a note under section 2141 of Title 10, Armed Forces, and was
    repealed by Pub. L. 99-145, title VI, Sec. 671(a)(3), Nov. 8, 1985,
    99 Stat. 663. See section 16302 of Title 10.
      Truth in Lending Act, referred to in subsec. (c), is title I of
    Pub. L. 90-321, May 29, 1968, 82 Stat. 146, as amended, which is
    classified generally to subchapter I (Sec. 1601 et seq.) of chapter
    41 of Title 15, Commerce and Trade. For complete classification of
    this Act to the Code, see Short Title note set out under section
    1601 of Title 15 and Tables.
      Section 1078-1 of this title, referred to in subsec. (e), was
    repealed by Pub. L. 103-66, title IV, Sec. 4047(b)-(d), Aug. 10,
    1993, 107 Stat. 364, eff. July 1, 1994, except with respect to
    loans provided under that section as it existed prior to Aug. 10,
    1993. Subsequently, a new section 1078-1, relating to voluntary
    flexible agreements with guaranty agencies, was enacted by Pub. L.
    105-244, title IV, Sec. 418, Oct. 7, 1998, 112 Stat. 1691.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1083, Pub. L. 89-329, title IV, Sec. 433, Nov. 8,
    1965, 79 Stat. 1247; Pub. L. 90-575, title I, Sec. 116(d), Oct. 16,
    1968, 82 Stat. 1024; Pub. L. 92-318, title I, Sec. 132(c), June 23,
    1972, 86 Stat. 261; Pub. L. 94-482, title I, Sec. 127(a), Oct. 12,
    1976, 90 Stat. 2129; Pub. L. 95-43, Sec. 1(a)(34), June 15, 1977,
    91 Stat. 216; Pub. L. 96-374, title XIII, Sec. 1391(a)(1), Oct. 3,
    1980, 94 Stat. 1503, related to requirements for institutional
    lenders, prior to the general revision of this part by Pub. L. 99-
    498.
      A prior section 1083a, Pub. L. 89-329, title IV, Sec. 433A, as
    added Pub. L. 96-374, title IV, Sec. 418, Oct. 3, 1980, 94 Stat.
    1423; amended Pub. L. 97-301, Sec. 13(a), Oct. 13, 1982, 96 Stat.
    1404; Pub. L. 98-79, Sec. 3(a), Aug. 15, 1983, 97 Stat. 476; Pub.
    L. 99-272, title XVI, Sec. 16012(c), Apr. 7, 1986, 100 Stat. 340,
    related to student loan information to be provided by eligible
    lenders, prior to the general revision of this part by Pub. L. 99-
    498. See section 1083 of this title.

                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-244, Sec. 428(a), amended heading
    and introductory provisions generally. Prior to amendment,
    introductory provisions read as follows: "Each eligible lender
    shall, at or prior to the time such lender disburses a loan which
    is insured or guaranteed under this part (other than a loan made
    under section 1078-3 of this title), provide thorough and accurate
    loan information on such loan to the borrower. Any disclosure
    required by this subsection may be made by an eligible lender as
    part of the written application material provided to the borrower,
    or as part of the promissory note evidencing the loan, or on a
    separate written form provided to the borrower. The disclosure
    shall include - ".
      Subsec. (b). Pub. L. 105-244, Sec. 428(b), amended heading and
    introductory provisions generally. Prior to amendment, introductory
    provisions read as follows: "Each eligible lender shall, at or
    prior to the start of the repayment period of the student borrower
    on loans made, insured, or guaranteed under this part, disclose to
    the borrower the information required under this subsection. For
    any loan made, insured, or guaranteed under this part, other than a
    loan made under section 1078-2 or 1078-3 of this title, such
    disclosure required by this subsection shall be made not less than
    30 days nor more than 240 days before the first payment on the loan
    is due from the borrower. The disclosure shall include - ".
      1993 - Subsec. (b). Pub. L. 103-208, Sec. 2(c)(53), substituted
    "30 days" for "60 days" in introductory provisions.
      Subsec. (e). Pub. L. 103-208, Sec. 2(k)(4), amended directory
    language of Pub. L. 102-325, Sec. 426(c). See 1992 Amendment note
    below.
      Pub. L. 103-208, Sec. 2(c)(54), substituted "sections" for
    "section" before "1078-1".
      1992 - Subsec. (a). Pub. L. 102-325, Sec. 426(a), added par. (1)
    and redesignated former pars. (1) to (13) as (2) to (14),
    respectively.
      Subsec. (b). Pub. L. 102-325, Sec. 426(b)(1), in introductory
    provisions, inserted second sentence and struck out former second
    sentence which read as follows: "Any disclosure required by this
    subsection may be made by an eligible lender either in a promissory
    note evidencing the loan or loans or in a written statement
    provided to the borrower."
      Subsec. (b)(8). Pub. L. 102-325, Sec. 426(b)(2), inserted "except
    as provided in subsection (e) of this section," before "the
    projected".
      Subsec. (e). Pub. L. 102-325, Sec. 426(c), as amended by Pub. L.
    103-208, Sec. 2(k)(4), added subsec. (e).
      1987 - Subsec. (a). Pub. L. 100-50, Sec. 10(z)(1), inserted
    "(other than a loan made under section 1078-3 of this title)" after
    "this part" in first sentence.
      Subsec. (a)(8). Pub. L. 100-50, Sec. 10(z)(2), added par. (8) and
    struck out former par. (8) which read as follows: "a statement of
    the total cumulative balance, including the loan applied for, owed
    by the student to that lender, the projected level of indebtedness
    of the student based on a 4-year college career, and an estimate of
    the projected monthly repayment given the level of indebtedness
    over a 4- or 5-year college career;".
      Subsec. (b)(7). Pub. L. 100-50, Sec. 10(z)(3), inserted ", except
    that such explanation is not required when the loan being made is a
    consolidation loan under section 1078-3 of this title" before
    semicolon at end.
      Subsec. (d). Pub. L. 100-50, Sec. 10(z)(4), substituted "notifies
    a borrower of approval of a loan" for "makes the first disbursement
    of a loan with respect to a borrower".

                     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(c)(53) of Pub. L. 103-208 effective on and
    after 60 days after Dec. 20, 1993 and amendments by section
    2(c)(54), (k)(4) of Pub. L. 103-208 effective, except as otherwise
    provided, as if included in the Higher Education Amendments of
    1992, Pub. L. 102-325, see section 5(a), (b)(4) of Pub. L. 103-208,
    set out as a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

                              EFFECTIVE DATE                          
      Section effective Oct. 17, 1986, with subsecs. (a), (b), and (d)
    of this section applicable only with respect to loans disbursed on
    or after Jan. 1, 1987, or made to cover the costs of instruction
    for periods of enrollment beginning on or after Jan. 1, 1987, see
    section 402(b) of Pub. L. 99-498, set out as a note under section
    1071 of this title.

-FOOTNOTE-               

    (!1) See References in Text note below.

    (!2) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1084                                            01/03/2007

-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. 1084. Participation by Federal credit unions in Federal,
      State, and private student loan insurance programs

-STATUTE-
      Notwithstanding any other provision of law, Federal credit unions
    shall, pursuant to regulations of the National Credit Union
    Administration, have power to make insured loans to student members
    in accordance with the provisions of this part relating to
    federally insured loans, or in accordance with the provisions of
    any State or nonprofit private student loan insurance program which
    meets the requirements of section 1078(a)(1)(B) of this title.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 434, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1408.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1084, Pub. L. 89-329, title IV, Sec. 434, Nov. 8,
    1965, 79 Stat. 1247; Pub. L. 90-575, title I, Sec. 116(b)(4), Oct.
    16, 1968, 82 Stat. 1024; Pub. L. 91-206, Sec. 6, Mar. 10, 1970, 84
    Stat. 51; Pub. L. 92-318, title I, Sec. 132D(e), June 23, 1972, 86
    Stat. 264; Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 1976, 90
    Stat. 2129; Pub. L. 95-630, title V, Sec. 502(a), Nov. 10, 1978, 92
    Stat. 3681, related to participation by Federal credit unions in
    Federal, State, and private student loan insurance programs, prior
    to the general revision of this part by Pub. L. 99-498.

-End-



-CITE-
    20 USC Sec. 1085                                            01/03/2007

-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. 1085. Definitions for student loan insurance program

-STATUTE-
      As used in this part:
    (a) Eligible institution
      (1) In general
        Except as provided in paragraph (2), the term "eligible
      institution" means an institution of higher education, as defined
      in section 1002 of this title, except that, for the purposes of
      sections 1077(a)(2)(C)(i) and 1078(b)(1)(M)(i) of this title, an
      eligible institution includes any institution that is within this
      definition without regard to whether such institution is
      participating in any program under this subchapter and part C of
      subchapter I of chapter 34 of title 42 and includes any
      institution ineligible for participation in any program under
      this part pursuant to paragraph (2) of this subsection.
      (2) Ineligibility based on high default rates
        (A) An institution whose cohort default rate is equal to or
      greater than the threshold percentage specified in subparagraph
      (B) for each of the three most recent fiscal years for which data
      are available shall not be eligible to participate in a program
      under this part for the fiscal year for which the determination
      is made and for the two succeeding fiscal years, unless, within
      30 days of receiving notification from the Secretary of the loss
      of eligibility under this paragraph, the institution appeals the
      loss of its eligibility to the Secretary. The Secretary shall
      issue a decision on any such appeal within 45 days after its
      submission. Such decision may permit the institution to continue
      to participate in a program under this part if - 
          (i) the institution demonstrates to the satisfaction of the
        Secretary that the Secretary's calculation of its cohort
        default rate is not accurate, and that recalculation would
        reduce its cohort default rate for any of the three fiscal
        years below the threshold percentage specified in subparagraph
        (B);
          (ii) there are exceptional mitigating circumstances within
        the meaning of paragraph (4); or
          (iii) there are, in the judgment of the Secretary, other
        exceptional mitigating circumstances that would make the
        application of this paragraph inequitable.

      During such appeal, the Secretary may permit the institution to
      continue to participate in a program under this part. If an
      institution continues to participate in a program under this
      part, and the institution's appeal of the loss of eligibility is
      unsuccessful, the institution shall be required to pay to the
      Secretary an amount equal to the amount of interest, special
      allowance, reinsurance, and any related payments made by the
      Secretary (or which the Secretary is obligated to make) with
      respect to loans made under this part to students attending, or
      planning to attend, that institution during the pendency of such
      appeal.
        (B) For purposes of determinations under subparagraph (A), the
      threshold percentage is - 
          (i) 35 percent for fiscal year 1991 and 1992;
          (ii) 30 percent for fiscal year 1993; and
          (iii) 25 percent for any succeeding fiscal year.

        (C) Until July 1, 1999, this paragraph shall not apply to any
      institution that is - 
          (i) a part B institution within the meaning of section
        1061(2) of this title;
          (ii) a tribally controlled community college within the
        meaning of section 1801(a)(4) (!1) of title 25; or

          (iii) a Navajo Community College under the Navajo Community
        College Act [25 U.S.C. 640a et seq.].

        (D) Notwithstanding the first sentence of subparagraph (A), the
      Secretary shall restore the eligibility to participate in a
      program under subpart 1 of part A, part B, or part D of this
      subchapter of an institution that did not appeal its loss of
      eligibility within 30 days of receiving notification if the
      Secretary determines, on a case-by-case basis, that the
      institution's failure to appeal was substantially justified under
      the circumstances, and that - 
          (i) the institution made a timely request that the
        appropriate guaranty agency correct errors in the draft data
        used to calculate the institution's cohort default rate;
          (ii) the guaranty agency did not correct the erroneous data
        in a timely fashion; and
          (iii) the institution would have been eligible if the
        erroneous data had been corrected by the guaranty agency.
      (3) Appeals based upon allegations of improper loan servicing
        An institution that - 
          (A) is subject to loss of eligibility for the Federal Family
        Education Loan Program pursuant to paragraph (2)(A) of this
        subsection;
          (B) is subject to loss of eligibility for the Federal
        Supplemental Loans for Students pursuant to section 1078-
        1(a)(2) (!1) of this title; or
          (C) is an institution whose cohort default rate equals or
        exceeds 20 percent for the most recent year for which data are
        available;

      may include in its appeal of such loss or rate a defense based on
      improper loan servicing (in addition to other defenses). In any
      such appeal, the Secretary shall take whatever steps are
      necessary to ensure that such institution has access for a
      reasonable period of time, not to exceed 30 days, to a
      representative sample (as determined by the Secretary) of the
      relevant loan servicing and collection records used by a guaranty
      agency in determining whether to pay a claim on a defaulted loan
      or by the Department in determining an institution's default rate
      in the loan program under part C of this subchapter. The
      Secretary shall reduce the institution's cohort default rate to
      reflect the percentage of defaulted loans in the representative
      sample that are required to be excluded pursuant to subsection
      (m)(1)(B) of this section.
      (4) Definition of mitigating circumstances
        (A) For purposes of paragraph (2)(A)(ii), an institution of
      higher education shall be treated as having exceptional
      mitigating circumstances that make application of that paragraph
      inequitable if such institution, in the opinion of an independent
      auditor, meets the following criteria:
          (i) For a 12-month period that ended during the 6 months
        immediately preceding the fiscal year for which the cohort of
        borrowers used to calculate the institution's cohort default
        rate is determined, at least two-thirds of the students
        enrolled on at least a half-time basis at the institution - 
            (I) are eligible to receive a Federal Pell Grant award that
          is at least equal to one-half the maximum Federal Pell Grant
          award for which a student would be eligible based on the
          student's enrollment status; or
            (II) have an adjusted gross income that when added with the
          adjusted gross income of the student's parents (unless the
          student is an independent student), of less than the poverty
          level, as determined by the Department of Health and Human
          Services.

          (ii) In the case of an institution of higher education that
        offers an associate, baccalaureate, graduate or professional
        degree, 70 percent or more of the institution's regular
        students who were initially enrolled on a full-time basis and
        were scheduled to complete their programs during the same 12-
        month period described in clause (i) - 
            (I) completed the educational programs in which the
          students were enrolled;
            (II) transferred from the institution to a higher level
          educational program;
            (III) at the end of the 12-month period, remained enrolled
          and making satisfactory progress toward completion of the
          student's educational programs; or
            (IV) entered active duty in the Armed Forces of the United
          States.

          (iii)(I) In the case of an institution of higher education
        that does not award a degree described in clause (ii), had a
        placement rate of 44 percent or more with respect to the
        institution's former regular students who - 
            (aa) remained in the program beyond the point the students
          would have received a 100 percent tuition refund from the
          institution;
            (bb) were initially enrolled on at least a half-time basis;
          and
            (cc) were originally scheduled, at the time of enrollment,
          to complete their educational programs during the same 12-
          month period described in clause (i).

          (II) The placement rate shall not include students who are
        still enrolled and making satisfactory progress in the
        educational programs in which the students were originally
        enrolled on the date following 12 months after the date of the
        student's last date of attendance at the institution.
          (III) The placement rate is calculated by determining the
        percentage of all those former regular students who - 
            (aa) are employed, in an occupation for which the
          institution provided training, on the date following 12
          months after the date of their last day of attendance at the
          institution;
            (bb) were employed, in an occupation for which the
          institution provided training, for at least 13 weeks before
          the date following 12 months after the date of their last day
          of attendance at the institution; or
            (cc) entered active duty in the Armed Forces of the United
          States.

          (IV) The placement rate shall not include as placements a
        student or former student for whom the institution is the
        employer.

        (B) For purposes of determining a rate of completion and a
      placement rate under this paragraph, a student is originally
      scheduled, at the time of enrollment, to complete the educational
      program on the date when the student will have been enrolled in
      the program for the amount of time normally required to complete
      the program. The amount of time normally required to complete the
      program for a student who is initially enrolled full-time is the
      period of time specified in the institution's enrollment
      contract, catalog, or other materials, for completion of the
      program by a full-time student. For a student who is initially
      enrolled less than full-time, the period is the amount of time it
      would take the student to complete the program if the student
      remained enrolled at that level of enrollment throughout the
      program.
      (5) Reduction of default rates at certain minority institutions
        (A) Beneficiaries of exception required to establish management
          plan
          After July 1, 1999, any institution that has a cohort default
        rate that equals or exceeds 25 percent for each of the three
        most recent fiscal years for which data are available and that
        relies on the exception in subparagraph (B) to continue to be
        an eligible institution shall - 
            (i) submit to the Secretary a default management plan which
          the Secretary, in the Secretary's discretion, after
          consideration of the institution's history, resources,
          dollars in default, and targets for default reduction,
          determines is acceptable and provides reasonable assurance
          that the institution will, by July 1, 2004, have a cohort
          default rate that is less than 25 percent;
            (ii) engage an independent third party (which may be paid
          with funds received under section 1059d of this title or part
          B of subchapter III of this chapter) to provide technical
          assistance in implementing such default management plan; and
            (iii) provide to the Secretary, on an annual basis or at
          such other intervals as the Secretary may require, evidence
          of cohort default rate improvement and successful
          implementation of such default management plan.
        (B) Discretionary eligibility conditioned on improvement
          Notwithstanding the expiration of the exception in paragraph
        (2)(C), the Secretary may, in the Secretary's discretion,
        continue to treat an institution described in subparagraph (A)
        of this paragraph as an eligible institution for each of the 1-
        year periods beginning on July 1 of 1999 through 2003, only if
        the institution submits by the beginning of such period
        evidence satisfactory to the Secretary that - 
            (i) such institution has complied and is continuing to
          comply with the requirements of subparagraph (A); and
            (ii) such institution has made substantial improvement,
          during each of the preceding 1-year periods, in the
          institution's cohort default rate.
      (6) Participation rate index
        (A) In general
          An institution that demonstrates to the Secretary that the
        institution's participation rate index is equal to or less than
        0.0375 for any of the 3 most recent fiscal years for which data
        is available shall not be subject to paragraph (2). The
        participation rate index shall be determined by multiplying the
        institution's cohort default rate for loans under this part or
        part C of this subchapter, or weighted average cohort default
        rate for loans under this part and part C of this subchapter,
        by the percentage of the institution's regular students,
        enrolled on at least a half-time basis, who received a loan
        made under this part or part C of this subchapter for a 12-
        month period ending during the 6 months immediately preceding
        the fiscal year for which the cohort of borrowers used to
        calculate the institution's cohort default rate is determined.
        (B) Data
          An institution shall provide the Secretary with sufficient
        data to determine the institution's participation rate index
        within 30 days after receiving an initial notification of the
        institution's draft cohort default rate.
        (C) Notification
          Prior to publication of a final cohort default rate for an
        institution that provides the data described in subparagraph
        (B), the Secretary shall notify the institution of the
        institution's compliance or noncompliance with subparagraph
        (A).
    (b), (c) Repealed. Pub. L. 102-325, title IV, Sec. 427(b)(1), (c),
      July 23, 1992, 106 Stat. 549
    (d) Eligible lender
      (1) In general
        Except as provided in paragraphs (2) through (6), the term
      "eligible lender" means - 
          (A) a National or State chartered bank, a mutual savings
        bank, a savings and loan association, a stock savings bank, or
        a credit union which - 
            (i) is subject to examination and supervision by an agency
          of the United States or of the State in which its principal
          place of operation is established, and
            (ii) does not have as its primary consumer credit function
          the making or holding of loans made to students under this
          part unless (I) it is a bank which is wholly owned by a
          State, or a bank which is subject to examination and
          supervision by an agency of the United States, makes student
          loans as a trustee pursuant to an express trust, operated as
          a lender under this part prior to January 1, 1975, and which
          meets the requirements of this provision prior to July 23,
          1992, (II) it is a single wholly owned subsidiary of a bank
          holding company which does not have as its primary consumer
          credit function the making or holding of loans made to
          students under this part, or (III) it is a bank (as defined
          in section 1813(a)(1) of title 12) that is a wholly owned
          subsidiary of a nonprofit foundation, the foundation is
          described in section 501(c)(3) of title 26 and exempt from
          taxation under section 501(1) of such title, and the bank
          makes loans under this part only to undergraduate students
          who are age 22 or younger and has a portfolio of such loans
          that is not more than $5,000,000;

          (B) a pension fund as defined in the Employee Retirement
        Income Security Act [29 U.S.C. 1001 et seq.];
          (C) an insurance company which is subject to examination and
        supervision by an agency of the United States or a State;
          (D) in any State, a single agency of the State or a single
        nonprofit private agency designated by the State;
          (E) an eligible institution which meets the requirements of
        paragraphs (2) through (5) of this subsection;
          (F) for purposes only of purchasing and holding loans made by
        other lenders under this part, the Student Loan Marketing
        Association or the Holding Company of the Student Loan
        Marketing Association, including any subsidiary of the Holding
        Company, created pursuant to section 1087-3 of this title, or
        an agency of any State functioning as a secondary market;
          (G) for purposes of making loans under sections 1078-
        1(d),(!1) 1078-2(d), 1078-3, and 1087-2(q) of this title, the
        Student Loan Marketing Association or the Holding Company of
        the Student Loan Marketing Association, including any
        subsidiary of the Holding Company, created pursuant to section
        1087-3 of this title;
          (H) for purposes of making loans under sections 1078(h) and
        1078(j) of this title, a guaranty agency;
          (I) a Rural Rehabilitation Corporation, or its successor
        agency, which has received Federal funds under Public Law 499,
        Eighty-first Congress (64 Stat. 98 (1950));
          (J) for purpose of making loans under section 1078-3 of this
        title, any nonprofit private agency functioning in any State as
        a secondary market; and
          (K) a consumer finance company subsidiary of a national bank
        which, as of October 7, 1998, through one or more subsidiaries:
        (i) acts as a small business lending company, as determined
        under regulations of the Small Business Administration under
        section 120.470 of title 13, Code of Federal Regulations (as
        such section is in effect on October 7, 1998); and (ii)
        participates in the program authorized by this part pursuant to
        subparagraph (C), provided the national bank and all of the
        bank's direct and indirect subsidiaries taken together as a
        whole, do not have, as their primary consumer credit function,
        the making or holding of loans made to students under this
        part.
      (2) Requirements for eligible institutions
        (A) In general
          To be an eligible lender under this part, an eligible
        institution - 
            (i) shall employ at least one person whose full-time
          responsibilities are limited to the administration of
          programs of financial aid for students attending such
          institution;
            (ii) shall not be a home study school;
            (iii) shall not - 
              (I) make a loan to any undergraduate student;
              (II) make a loan other than a loan under section 1078 or
            1078-8 of this title to a graduate or professional student;
            or
              (III) make a loan to a borrower who is not enrolled at
            that institution;

            (iv) shall award any contract for financing, servicing, or
          administration of loans under this subchapter and part C of
          subchapter I of chapter 34 of title 42 on a competitive
          basis;
            (v) shall offer loans that carry an origination fee or an
          interest rate, or both, that are less than such fee or rate
          authorized under the provisions of this subchapter and part C
          of subchapter I of chapter 34 of title 42;
            (vi) shall not have a cohort default rate (as defined in
          subsection (m)) greater than 10 percent;
            (vii) shall, for any year for which the institution engages
          in activities as an eligible lender, provide for a compliance
          audit conducted in accordance with section
          1078(b)(1)(U)(iii)(I) of this title, and the regulations
          thereunder, and submit the results of such audit to the
          Secretary;
            (viii) shall use any proceeds from special allowance
          payments and interest payments from borrowers, interest
          subsidies received from the Department of Education, and any
          proceeds from the sale or other disposition of loans, for
          need-based grant programs; and
            (ix) shall have met the requirements of subparagraphs (A)
          through (F) of this paragraph as in effect on the day before
          February 8, 2006, and made loans under this part, on or
          before April 1, 2006.
        (B) Administrative expenses
          An eligible lender under subparagraph (A) shall be permitted
        to use a portion of the proceeds described in subparagraph
        (A)(viii) for reasonable and direct administrative expenses.
        (C) Supplement, not supplant
          An eligible lender under subparagraph (A) shall ensure that
        the proceeds described in subparagraph (A)(viii) are used to
        supplement, and not to supplant, non-Federal funds that would
        otherwise be used for need-based grant programs.
      (3) Disqualification for high default rates
        The term "eligible lender" does not include any eligible
      institution in any fiscal year immediately after the fiscal year
      in which the Secretary determines, after notice and opportunity
      for a hearing, that for each of 2 consecutive years, 15 percent
      or more of the total amount of such loans as are described in
      section 1078(a)(1) of this title made by the institution with
      respect to students at that institution and repayable in each
      such year, are in default, as defined in subsection (m) of this
      section.
      (4) Waiver of disqualification
        Whenever the Secretary determines that - 
          (A) there is reasonable possibility that an eligible
        institution may, within 1 year after a determination is made
        under paragraph (3), improve the collection of loans described
        in section 1078(a)(1) of this title, so that the application of
        paragraph (3) would be a hardship to that institution, or
          (B) the termination of the lender's status under paragraph
        (3) would be a hardship to the present or for prospective
        students of the eligible institution, after considering the
        management of that institution, the ability of that institution
        to improve the collection of loans, the opportunities that
        institution offers to economically disadvantaged students, and
        other related factors,

      the Secretary shall waive the provisions of paragraph (3) with
      respect to that institution. Any determination required under
      this paragraph shall be made by the Secretary prior to the
      termination of an eligible institution as a lender under the
      exception of paragraph (3). Whenever the Secretary grants a
      waiver pursuant to this paragraph, the Secretary shall provide
      technical assistance to the institution concerned in order to
      improve the collection rate of such loans.
      (5) Disqualification for use of certain incentives
        The term "eligible lender" does not include any lender that the
      Secretary determines, after notice and opportunity for a hearing,
      has after October 17, 1986 - 
          (A) offered, directly or indirectly, points, premiums,
        payments, or other inducements, to any educational institution
        or individual in order to secure applicants for loans under
        this part;
          (B) conducted unsolicited mailings to students of student
        loan application forms, except to students who have previously
        received loans under this part from such lender;
          (C) offered, directly or indirectly, loans under this part as
        an inducement to a prospective borrower to purchase a policy of
        insurance or other product; or
          (D) engaged in fraudulent or misleading advertising.

      It shall not be a violation of this paragraph for a lender to
      provide assistance to institutions of higher education comparable
      to the kinds of assistance provided to institutions of higher
      education by the Department of Education.
      (6) Rebate fee requirement
        To be an eligible lender under this part, an eligible lender
      shall pay rebate fees in accordance with section 1078-3(f) of
      this title.
      (7) Eligible lender trustees
        Notwithstanding any other provision of this subsection, an
      eligible lender may not make or hold a loan under this part as
      trustee for an institution of higher education, or for an
      organization affiliated with an institution of higher education,
      unless - 
          (A) the eligible lender is serving as trustee for that
        institution or organization as of September 30, 2006, under a
        contract that was originally entered into before September 30,
        2006, and that continues in effect or is renewed after
        September 30, 2006; and
          (B) the institution or organization, and the eligible lender,
        with respect to its duties as trustee, each comply on and after
        January 1, 2007, with the requirements of paragraph (2), except
        that - 
            (i) the requirements of clauses (i), (ii), (vi), and (viii)
          of paragraph (2)(A) shall, subject to clause (ii) of this
          subparagraph, only apply to the institution (including both
          an institution for which the lender serves as trustee and an
          institution affiliated with an organization for which the
          lender serves as trustee);
            (ii) in the case of an organization affiliated with an
          institution - 
              (I) the requirements of clauses (iii) and (v) of
            paragraph (2)(A) shall apply to the organization; and
              (II) the requirements of clause (viii) of paragraph
            (2)(A) shall apply to the institution or the organization
            (or both), if the institution or organization receives
            (directly or indirectly) the proceeds described in such
            clause;

            (iii) the requirements of clauses (iv) and (ix) of
          paragraph (2)(A) shall not apply to the eligible lender,
          institution, or organization; and
            (iv) the eligible lender, institution, and organization
          shall ensure that the loans made or held by the eligible
          lender as trustee for the institution or organization, as the
          case may be, are included in a compliance audit in accordance
          with clause (vii) of paragraph (2)(A).
    (e) Line of credit
      The term "line of credit" means an arrangement or agreement
    between the lender and the borrower whereby a loan is paid out by
    the lender to the borrower in annual installments, or whereby the
    lender agrees to make, in addition to the initial loan, additional
    loans in subsequent years.
    (f) Due diligence
      The term "due diligence" requires the utilization by a lender, in
    the servicing and collection of loans insured under this part, of
    servicing and collection practices at least as extensive and
    forceful as those generally practiced by financial institutions for
    the collection of consumer loans.
    (g), (h) Repealed. Pub. L. 102-325, title IV, Sec. 427(f), July 23,
      1992, 106 Stat. 550
    (i) Holder
      The term "holder" means an eligible lender who owns a loan.
    (j) Guaranty agency
      The term "guaranty agency" means any State or nonprofit private
    institution or organization with which the Secretary has an
    agreement under section 1078(b) of this title.
    (k) Insurance beneficiary
      The term "insurance beneficiary" means the insured or its
    authorized representative assigned in accordance with section
    1079(d) of this title.
    (l) Default
      Except as provided in subsection (m) of this section, the term
    "default" includes only such defaults as have existed for (1) 270
    days in the case of a loan which is repayable in monthly
    installments, or (2) 330 days in the case of a loan which is
    repayable in less frequent installments.
    (m) Cohort default rate
      (1) In general
        (A) Except as provided in paragraph (2), the term "cohort
      default rate" means, for any fiscal year in which 30 or more
      current and former students at the institution enter repayment on
      loans under section 1078, 1078-1,(!2) or 1078-8 of this title
      received for attendance at the institution, the percentage of
      those current and former students who enter repayment on such
      loans (or on the portion of a loan made under section 1078-3 of
      this title that is used to repay any such loans) received for
      attendance at that institution in that fiscal year who default
      before the end of the following fiscal year. The Secretary shall
      require that each guaranty agency that has insured loans for
      current or former students of the institution afford such
      institution a reasonable opportunity (as specified by the
      Secretary) to review and correct errors in the information
      required to be provided to the Secretary by the guaranty agency
      for the purposes of calculating a cohort default rate for such
      institution, prior to the calculation of such rate.

        (B) In determining the number of students who default before
      the end of such fiscal year, the Secretary shall include only
      loans for which the Secretary or a guaranty agency has paid
      claims for insurance. In considering appeals with respect to
      cohort default rates pursuant to subsection (a)(3) of this
      section, the Secretary shall exclude, from the calculation of the
      number of students who entered repayment and from the calculation
      of the number of students who default, any loans which, due to
      improper servicing or collection, would, as demonstrated by the
      evidence submitted in support of the institution's timely appeal
      to the Secretary, result in an inaccurate or incomplete
      calculation of such cohort default rate.
        (C) For any fiscal year in which fewer than 30 of the
      institution's current and former students enter repayment, the
      term "cohort default rate" means the percentage of such current
      and former students who entered repayment on such loans (or on
      the portion of a loan made under section 1078-3 of this title
      that is used to repay any such loans) in any of the three most
      recent fiscal years, who default before the end of the fiscal
      year immediately following the year in which they entered
      repayment.
      (2) Special rules
        (A) In the case of a student who has attended and borrowed at
      more than one school, the student (and such student's subsequent
      repayment or default) is attributed to each school for attendance
      at which the student received a loan that entered repayment in
      the fiscal year.
        (B) A loan on which a payment is made by the school, such
      school's owner, agent, contractor, employee, or any other entity
      or individual affiliated with such school, in order to avoid
      default by the borrower, is considered as in default for purposes
      of this subsection.
        (C) Any loan which has been rehabilitated before the end of
      such following fiscal year is not considered as in default for
      the purposes of this subsection. The Secretary may require
      guaranty agencies to collect data with respect to defaulted loans
      in a manner that will permit the identification of any defaulted
      loan for which (i) the borrower is currently making payments and
      has made not less than 6 consecutive on-time payments by the end
      of such following fiscal year, and (ii) a guaranty agency has
      renewed the borrower's title IV eligibility as provided in
      section 1078-6(b) of this title.
        (D) For the purposes of this subsection, a loan made in
      accordance with section 1078-1 (!2) of this title (or the portion
      of a loan made under section 1078-3 of this title that is used to
      repay a loan made under section 1078-1 (!2) of this title) shall
      not be considered to enter repayment until after the borrower has
      ceased to be enrolled in a course of study leading to a degree or
      certificate at an eligible institution on at least a half-time
      basis (as determined by the institution) and ceased to be in a
      period of forbearance based on such enrollment. Each eligible
      lender of a loan made under section 1078-1 (!2) of this title (or
      a loan made under section 1078-3 of this title a portion of which
      is used to repay a loan made under section 1078-1 (!2) of this
      title) shall provide the guaranty agency with the information
      necessary to determine when the loan entered repayment for
      purposes of this subsection, and the guaranty agency shall
      provide such information to the Secretary.
      (3) Regulations to prevent evasions
        The Secretary shall prescribe regulations designed to prevent
      an institution from evading the application to that institution
      of a default rate determination under this subsection through the
      use of such measures as branching, consolidation, change of
      ownership or control, or any similar device.
      (4) Collection and reporting of cohort default rates
        (A) The Secretary shall collect data from all insurers under
      this part and shall publish not less often than once every fiscal
      year a report showing default data for each category of
      institution, including (i) 4-year public institutions, (ii) 4-
      year private institutions, (iii) 2-year public institutions,
      (iv) 2-year private institutions, (v) 4-year proprietary
      institutions, (vi) 2-year proprietary institutions, and (vii)
      less than 2-year proprietary institutions.
        (B) The Secretary may designate such additional subcategories
      within the categories specified in subparagraph (A) as the
      Secretary deems appropriate.
        (C) The Secretary shall publish not less often than once every
      fiscal year a report showing default data for each institution
      for which a cohort default rate is calculated under this
      subsection.
        (D) The Secretary shall publish the report described in
      subparagraph (C) by September 30 of each year.
    (n) Repealed. Pub. L. 102-325, title IV, Sec. 427(f), July 23,
      1992, 106 Stat. 550
    (o) Economic hardship
      (1) In general
        For purposes of this part and part D of this subchapter, a
      borrower shall be considered to have an economic hardship if - 
          (A) such borrower is working full-time and is earning an
        amount which does not exceed the greater of - 
            (i) the minimum wage rate described in section 206 of title
          29; or
            (ii) an amount equal to 100 percent of the poverty line for
          a family of 2 as determined in accordance with section
          9902(2) of title 42;

          (B) such borrower is working full-time and has a Federal
        educational debt burden that equals or exceeds 20 percent of
        such borrower's adjusted gross income, and the difference
        between such borrower's adjusted gross income minus such burden
        is less than 220 percent of the greater of - 
            (i) the annual earnings of an individual earning the
          minimum wage under section 206 of title 29; or
            (ii) the income official poverty line (as defined by the
          Office of Management and Budget, and revised annually in
          accordance with section 9902(2) of title 42) applicable to a
          family of two; or

          (C) such borrower meets such other criteria as are
        established by the Secretary by regulation in accordance with
        paragraph (2).
      (2) Considerations
        In establishing criteria for purposes of paragraph (1)(C), the
      Secretary shall consider the borrower's income and debt-to-income
      ratio as primary factors.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 435, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1408; amended Pub. L. 100-
    50, Sec. 10(aa), June 3, 1987, 101 Stat. 347; Pub. L. 101-239,
    title II, Secs. 2003(a)(2), 2007(a), Dec. 19, 1989, 103 Stat. 2113,
    2120; Pub. L. 101-508, title III, Sec. 3004(a), Nov. 5, 1990, 104
    Stat. 1388-26; Pub. L. 101-542, title III, Sec. 301, Nov. 8, 1990,
    104 Stat. 2387; Pub. L. 102-26, Sec. 2(a)(1), Apr. 9, 1991, 105
    Stat. 123; Pub. L. 102-325, title IV, Secs. 416(e)(2), 427(a),
    (b)(1), (c)-(g), July 23, 1992, 106 Stat. 519, 549, 550; Pub. L.
    103-66, title IV, Secs. 4046(b)(1), 4106(b), Aug. 10, 1993, 107
    Stat. 362, 368; Pub. L. 103-208, Sec. 2(c)(55)-(62), Dec. 20, 1993,
    107 Stat. 2468, 2469; Pub. L. 103-235, Sec. 1, Apr. 28, 1994, 108
    Stat. 381; Pub. L. 103-382, title III, Sec. 357, Oct. 20, 1994, 108
    Stat. 3967; Pub. L. 104-208, div. A, title I, Sec. 101(e) [title
    VI, Sec. 602(b)(1)(A)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-
    283; Pub. L. 105-244, title I, Sec. 102(b)(2), title IV, Sec.
    429(a)-(c)(1), (d), title IX, Sec. 901(d), Oct. 7, 1998, 112 Stat.
    1622, 1704-1709, 1828; Pub. L. 106-554, Sec. 1(a)(1) [title III,
    Secs. 308(a), 312], Dec. 21, 2000, 114 Stat. 2763, 2763A-45, 2763A-
    46; Pub. L. 109-171, title VIII, Sec. 8011, Feb. 8, 2006, 120
    Stat. 165; Pub. L. 109-292, Sec. 3(a), Sept. 30, 2006, 120 Stat.
    1340.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1801(a)(4) of title 25, referred to in subsec.
    (a)(2)(C)(ii), was amended by Pub. L. 105-244, title IX, Sec.
    901(b)(5), Oct. 7, 1998, 112 Stat. 1828, and, as so amended, no
    longer defines the term "tribally controlled community college".
      The Navajo Community College Act, referred to in subsec.
    (a)(2)(C)(iii), is Pub. L. 92-189, Dec. 15, 1971, 85 Stat. 646, as
    amended, which is classified to section 640a et seq. of Title 25,
    Indians. For complete classification of this Act to the Code, see
    Short Title note set out under section 640a of Title 25 and Tables.
      The Employee Retirement Income Security Act, referred to in
    subsec. (d)(1)(B), probably means the Employee Retirement Income
    Security Act of 1974, Pub. L. 93-406, Sept. 2, 1974, 88 Stat. 829,
    as amended, which is classified principally to chapter 18 (Sec.
    1001 et seq.) of Title 29, Labor. For complete classification of
    this Act to the Code, see Short Title note set out under section
    1001 of Title 29 and Tables.
      Section 1078-1 of this title, referred to in subsecs. (a)(3)(B),
    (d)(1)(G), and (m)(1)(A), (2)(D), was repealed by Pub. L. 103-66,
    title IV, Sec. 4047(b)-(d), Aug. 10, 1993, 107 Stat. 364, eff. July
    1, 1994, except with respect to loans provided under that section
    as it existed prior to Aug. 10, 1993. Subsequently, a new section
    1078-1, relating to voluntary flexible agreements with guaranty
    agencies, was enacted by Pub. L. 105-244, title IV, Sec. 418, Oct.
    7, 1998, 112 Stat. 1691.
      Public Law 499, Eighty-first Congress (64 Stat. 98 (1950)),
    referred to in subsec. (d)(1)(I), is act May 3, 1950, ch. 152, 64
    Stat. 98, known as the Rural Rehabilitation Corporation Trust
    Liquidation Act, which was classified to sections 440 to 444 of
    former Title 40, Public Buildings, Property, and Works, and as
    notes set out under section 1001 of Title 7, Agriculture, and
    section 440 of former Title 40, and was omitted from the Code.
      Title IV, referred to in subsec. (m)(2)(C), means title IV of the
    Higher Education Act of 1965, Pub. L. 89-329, which is classified
    generally to this subchapter and part C (Sec. 2751 et seq.) of
    subchapter I of chapter 34 of Title 42, The Public Health and
    Welfare. For complete classification of title IV to the Code, see
    Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1085, Pub. L. 89-329, title IV, Sec. 435, Nov. 8,
    1965, 79 Stat. 1247; Pub. L. 89-698, title II, Sec. 204, Oct. 29,
    1966, 80 Stat. 1072; Pub. L. 90-575, title I, Secs. 116(a), 118(a),
    Oct. 16, 1968, 82 Stat. 1023, 1026; Pub. L. 94-482, title I, Sec.
    127(a), Oct. 12, 1976, 90 Stat. 2130; Pub. L. 95-43, Sec. 1(a)(35),
    (36), June 15, 1977, 91 Stat. 216; Pub. L. 96-374, title IV, Secs.
    413(e), 421(e)(2), title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94
    Stat. 1418, 1432, 1503; Pub. L. 99-272, title XVI, Secs.
    16017(b)(2), 16020, Apr. 7, 1986, 100 Stat. 347, 349, defined terms
    used in this part, prior to the general revision of this part by
    Pub. L. 99-498.

                                AMENDMENTS                            
      2006 - Subsec. (d)(2). Pub. L. 109-171 amended heading and text
    of par. (2) generally. Prior to amendment, text read as follows:
    "To be an eligible lender under this part, an eligible institution -
     
        "(A) shall employ at least one person whose full-time
      responsibilities are limited to the administration of programs of
      financial aid for students attending such institution;
        "(B) shall not be a home study school;
        "(C) shall make loans to not more than 50 percent of the
      undergraduate students at the institution;
        "(D) shall not make a loan, other than a loan to a graduate or
      professional student, unless the borrower has previously received
      a loan from the school or has been denied a loan by an eligible
      lender;
        "(E) shall not have a cohort default rate (as defined in
      subsection (m) of this section) greater than 15 percent; and
        "(F) shall use the proceeds from special allowance payments and
      interest payments from borrowers for need-based grant programs,
      except for reasonable reimbursement for direct administrative
      expenses;
    except that the requirements of subparagraphs (C) and (D) shall not
    apply with respect to loans made, and loan commitments made, after
    October 17, 1986, and prior to July 1, 1987."
      Subsec. (d)(7). Pub. L. 109-292 added par. (7).
      2000 - Subsec. (a)(2)(D). Pub. L. 106-554, Sec. 1(a)(1) [title
    III, Sec. 308(a)], added subpar. (D).
      Subsec. (a)(5)(A)(i). Pub. L. 106-554, Sec. 1(a)(1) [title III,
    Sec. 312(1)], substituted "July 1, 2004," for "July 1, 2002,".
      Subsec. (a)(5)(B). Pub. L. 106-554, Sec. 1(a)(1) [title III, Sec.
    312(2)], substituted "1999 through 2003" for "1999, 2000, and 2001"
    in introductory provisions.
      1998 - Subsec. (a)(1). Pub. L. 105-244, Sec. 102(b)(2),
    substituted "section 1002" for "section 1088".
      Subsec. (a)(2)(A). Pub. L. 105-244, Sec. 429(a)(1)(A)(i), (ii),
    struck out "or" at end of cl. (i), added cls. (ii) and (iii), and
    struck out former cl. (ii) which read as follows: "there are, in
    the judgment of the Secretary, exceptional mitigating circumstances
    that would make the application of this paragraph inequitable."
      Pub. L. 105-244, Sec. 429(a)(1)(A)(iii), inserted at end of
    concluding provisions "If an institution continues to participate
    in a program under this part, and the institution's appeal of the
    loss of eligibility is unsuccessful, the institution shall be
    required to pay to the Secretary an amount equal to the amount of
    interest, special allowance, reinsurance, and any related payments
    made by the Secretary (or which the Secretary is obligated to make)
    with respect to loans made under this part to students attending,
    or planning to attend, that institution during the pendency of such
    appeal."
      Subsec. (a)(2)(C). Pub. L. 105-244, Sec. 429(a)(1)(B),
    substituted "July 1, 1999," for "July 1, 1998," in introductory
    provisions.
      Subsec. (a)(2)(C)(ii). Pub. L. 105-244, Sec. 901(d), made
    technical amendment to reference in original act which appears in
    text as reference to section 1801(a)(4) of title 25.
      Subsec. (a)(3). Pub. L. 105-244, Sec. 429(a)(2), in concluding
    provisions, inserted "for a reasonable period of time, not to
    exceed 30 days," after "access" and substituted "used by a guaranty
    agency in determining whether to pay a claim on a defaulted loan or
    by the Department in determining an institution's default rate in
    the loan program under part C of this subchapter" for "of the
    affected guaranty agencies and loan servicers for a reasonable
    period of time, not to exceed 30 days".
      Subsec. (a)(4) to (6). Pub. L. 105-244, Sec. 429(a)(3), added
    pars. (4) to (6).
      Subsec. (d)(1)(A)(ii)(III). Pub. L. 105-244, Sec. 429(b)(1)(A),
    added subcl. (III).
      Subsec. (d)(1)(K). Pub. L. 105-244, Sec. 429(b)(1)(B)-(D), added
    subpar. (K).
      Subsec. (d)(5). Pub. L. 105-244, Sec. 429(b)(2), inserted
    concluding provisions.
      Subsec. (l). Pub. L. 105-244, Sec. 429(c)(1), substituted "270
    days" for "180 days" and "330 days" for "240 days".
      Subsec. (m)(1)(B). Pub. L. 105-244, Sec. 429(d)(1), substituted
    "insurance. In considering appeals with respect to cohort default
    rates pursuant to subsection (a)(3) of this section, the Secretary
    shall exclude, from the calculation of the number of students who
    entered repayment and from the calculation of the number of
    students who default," for "insurance, and, in considering appeals
    with respect to cohort default rates pursuant to subsection (a)(3)
    of this section, exclude".
      Subsec. (m)(2)(C). Pub. L. 105-244, Sec. 429(d)(2), inserted at
    end "The Secretary may require guaranty agencies to collect data
    with respect to defaulted loans in a manner that will permit the
    identification of any defaulted loan for which (i) the borrower is
    currently making payments and has made not less than 6 consecutive
    on-time payments by the end of such following fiscal year, and (ii)
    a guaranty agency has renewed the borrower's title IV eligibility
    as provided in section 1078-6(b) of this title."
      Subsec. (m)(4)(D). Pub. L. 105-244, Sec. 429(d)(3), added subpar.
    (D).
      1996 - Subsec. (d)(1)(F). Pub. L. 104-208, Sec. 101(e) [title VI,
    Sec. 602(b)(1)(A)(i)], inserted "or the Holding Company of the
    Student Loan Marketing Association, including any subsidiary of the
    Holding Company, created pursuant to section 1087-3 of this title,"
    after "Student Loan Marketing Association".
      Subsec. (d)(1)(G). Pub. L. 104-208, Sec. 101(e) [title VI, Sec.
    602(b)(1)(A)(ii)], inserted "or the Holding Company of the Student
    Loan Marketing Association, including any subsidiary of the Holding
    Company, created pursuant to section 1087-3 of this title" after
    "Student Loan Marketing Association".
      1994 - Subsec. (a)(2)(C). Pub. L. 103-235 substituted "July 1,
    1998" for "July 1, 1994".
      Subsec. (o)(1). Pub. L. 103-382, Sec. 357(1)-(3), struck out "or"
    at end of subpar. (A), added subpar. (B), and redesignated former
    subpar. (B) as (C).
      Subsec. (o)(2). Pub. L. 103-382, Sec. 357(4), substituted
    "(1)(C)" for "(1)(B)".
      1993 - Subsec. (a)(3). Pub. L. 103-208, Sec. 2(c)(55), added par.
    (3).
      Subsec. (d)(1). Pub. L. 103-66, Sec. 4106(b)(1), in par. (1)
    substituted "through (6)" for "through (5)" in introductory
    provisions.
      Subsec. (d)(2). Pub. L. 103-208, Sec. 2(c)(57), realigned margins
    of closing provisions.
      Subsec. (d)(2)(D). Pub. L. 103-208, Sec. 2(c)(56), substituted
    "lender;" for "lender; and".
      Subsec. (d)(3). Pub. L. 103-208, Sec. 2(c)(58), substituted
    "subsection (m)" for "subsection (o)".
      Subsec. (d)(6). Pub. L. 103-66, Sec. 4106(b)(2), added par. (6).
      Subsec. (m)(1). Pub. L. 103-66, Sec. 4046(b)(1)(C), which
    directed the insertion in par. (1)(D) of "(or the portion of a loan
    made under section 1078-3 of this title that is used to repay a
    loan made under such section)" after "section 1078-1 of this title"
    the first place it appears, and "(or a loan made under section 1078-
    3 of this title a portion of which is used to repay a loan made
    under such section)" after "section 1078-1 of this title" the
    second place it appears, could not be executed because subsec.
    (m)(1) does not contain a subpar. (D).
      Subsec. (m)(1)(A). Pub. L. 103-208, Sec. 2(c)(60)(A), inserted at
    end "The Secretary shall require that each guaranty agency that has
    insured loans for current or former students of the institution
    afford such institution a reasonable opportunity (as specified by
    the Secretary) to review and correct errors in the information
    required to be provided to the Secretary by the guaranty agency for
    the purposes of calculating a cohort default rate for such
    institution, prior to the calculation of such rate."
      Pub. L. 103-208, Sec. 2(c)(59), substituted "section 1078, 1078-
    1, or 1078-8" for "section 1078 or 1078-1".
      Pub. L. 103-66, Sec. 4046(b)(1)(A), inserted "(or on the portion
    of a loan made under section 1078-3 of this title that is used to
    repay any such loans)" after "on such loans".
      Subsec. (m)(1)(B). Pub. L. 103-208, Sec. 2(c)(60)(B), substituted
    "and, in considering appeals with respect to cohort default rates
    pursuant to subsection (a)(3) of this section, exclude any loans
    which, due to improper servicing or collection, would, as
    demonstrated by the evidence submitted in support of the
    institution's timely appeal to the Secretary, result in an
    inaccurate or incomplete calculation of such cohort default rate."
    for "and, in calculating the cohort default rate, exclude any loans
    which, due to improper servicing or collection, would result in an
    inaccurate or incomplete calculation of the cohort default rate."
      Subsec. (m)(1)(C). Pub. L. 103-66, Sec. 4046(b)(1)(B), inserted
    "(or on the portion of a loan made under section 1078-3 of this
    title that is used to repay any such loans)" after "on such loans".
      Subsec. (m)(2)(D). Pub. L. 103-208, Sec. 2(c)(61), inserted "(or
    the portion of a loan made under section 1078-3 of this title that
    is used to repay a loan made under section 1078-1 of this title)"
    after "in accordance with section 1078-1 of this title", and "(or a
    loan made under section 1078-3 of this title a portion of which is
    used to repay a loan made under section 1078-1 of this title)"
    after "a loan made under section 1078-1 of this title".
      Subsec. (m)(4). Pub. L. 103-208, Sec. 2(c)(62), added par. (4).
      1992 - Subsec. (a)(1). Pub. L. 102-325, Sec. 427(a)(1), added
    par. (1) and struck out former par. (1) which read as follows:
    "Subject to subsection (n) of this section, the term 'eligible
    institution' means - 
        "(A) an institution of higher education;
        "(B) a vocational school; or
        "(C) with respect to students who are nationals of the United
      States, an institution outside the United States which is
      comparable to an institution of higher education or to a
      vocational school and which has been approved by the Secretary
      for the purpose of this part,
    except that such term does not include any such institution or
    school which employs or uses commissioned salesmen to promote the
    availability of any loan program described in section 1078(a)(1),
    1078-1, or 1078-2 of this title at that institution or school."
      Subsec. (a)(2). Pub. L. 102-325, Sec. 427(a)(3), struck out "and"
    at end of subpar. (B)(i), substituted "fiscal year 1993; and" for
    "any succeeding fiscal year." in subpar. (B)(ii), and added subpar.
    (B)(iii).
      Pub. L. 102-325, Sec. 427(a)(1), (2), redesignated par. (3) as
    (2) and struck out former par. (2) which required Secretary to
    establish criteria for qualifying foreign medical schools as
    "eligible institutions".
      Subsec. (a)(3). Pub. L. 102-325, Sec. 427(a)(2), redesignated
    par. (3) as (2).
      Subsec. (b). Pub. L. 102-325, Sec. 427(b)(1), struck out subsec.
    (b) which defined "institution of higher education".
      Subsec. (c). Pub. L. 102-325, Sec. 427(c), struck out subsec. (c)
    which defined "vocational school".
      Subsec. (d)(1)(A). Pub. L. 102-325, Sec. 427(d)(1), in
    introductory provisions, struck out "a trust company," after "stock
    savings bank," and in cl. (ii), inserted at end of subcl. (I) "or a
    bank which is subject to examination and supervision by an agency
    of the United States, makes student loans as a trustee pursuant to
    an express trust, operated as a lender under this part prior to
    January 1, 1975, and which meets the requirements of this provision
    prior to July 23, 1992, or" and substituted a semicolon for "or
    (III) it is a trust company which makes student loans as a trustee
    pursuant to an express trust and which operated as a lender under
    this part prior to January 1, 1981;".
      Subsec. (d)(2)(E), (F). Pub. L. 102-325, Sec. 427(d)(2), added
    subpars. (E) and (F).
      Subsec. (f). Pub. L. 102-325, Sec. 427(e), inserted "servicing
    and" before "collection practices".
      Subsecs. (g), (h). Pub. L. 102-325, Sec. 427(f), struck out
    subsec. (g) which defined "temporarily totally disabled" and
    subsec. (h) which defined "parental leave".
      Subsec. (m). Pub. L. 102-325, Sec. 427(g), amended subsec. (m)
    generally, revising and restating as pars. (1) to (3) provisions
    formerly contained in a single paragraph.
      Subsec. (n). Pub. L. 102-325, Sec. 427(f), struck out subsec. (n)
    which related to impact of loss of accreditation on certification
    or recertification as an eligible institution.
      Subsec. (o). Pub. L. 102-325, Sec. 416(e)(2), added subsec. (o).
      1991 - Subsec. (c)(1). Pub. L. 102-26 substituted "or who are
    beyond the age of compulsory school attendance in the State in
    which the institution is located" for "and who have the ability to
    benefit (as determined by the institution under section 1088(d) of
    this title) from the training offered by such institution;".
      1990 - Subsec. (a)(3). Pub. L. 101-508 added par. (3).
      Subsec. (l). Pub. L. 101-542, Sec. 301(1), substituted "Except as
    provided in subsection (m) of this section, the term" for "The
    term".
      Subsec. (m). Pub. L. 101-542, Sec. 301(2), inserted after first
    sentence "In determining the number of students who default before
    the end of such fiscal year, the Secretary shall include only loans
    for which the Secretary or a guaranty agency has paid claims for
    insurance, and, in calculating the cohort default rate, exclude any
    loans which, due to improper servicing or collection, would result
    in an inaccurate or incomplete calculation of the cohort default
    rate."
      1989 - Subsec. (a)(1). Pub. L. 101-239, Sec. 2007(a)(1),
    substituted "Subject to subsection (n) of this section, the term"
    for "The term".
      Subsec. (m). Pub. L. 101-239, Sec. 2003(a)(2), added subsec. (m).
      Subsec. (n). Pub. L. 101-239, Sec. 2007(a)(2), added subsec. (n).
      1987 - Subsec. (b)(3). Pub. L. 100-50, Sec. 10(aa)(1), inserted
    ", or in the case of a hospital or health care facility, which
    provides training of not less than one year for graduates of
    accredited health professions programs, leading to a degree or
    certificate upon completion of such training" before semicolon at
    end.
      Subsec. (d)(1)(J). Pub. L. 100-50, Sec. 10(aa)(2), added subpar.
    (J).
      Subsec. (d)(2). Pub. L. 100-50, Sec. 10(aa)(3), added subpars.
    (C) and (D) and inserted concluding provision that the requirements
    of subpars. (C) and (D) not apply with respect to loans made, and
    loan commitments made, after Oct. 17, 1986, and prior to July 1,
    1987.
      Subsec. (g)(2). Pub. L. 100-50, Sec. 10(aa)(4), added par. (2)
    and struck out former par. (2) which read as follows: "Such term
    when used with respect to the disabled dependent of a single parent
    borrower means a dependent who, by reason of injury or illness,
    cannot be expected to be able to attend school or to be gainfully
    employed during a period of injury or illness of not less than 3
    months and who during such period requires continuous nursing or
    similar services."
      Subsec. (h). Pub. L. 100-50, Sec. 10(aa)(5), struck out
    "Definition of" before "Parental" in heading.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-292, Sec. 3(b), Sept. 30, 2006, 120 Stat. 1341,
    provided that: "The amendment made by subsection (a) [amending this
    section] shall not apply with respect to any loan under part B of
    title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et
    seq.) disbursed before January 1, 2007."
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 2000 AMENDMENT                 
      Pub. L. 106-554, Sec. 1(a)(1) [title III, Sec. 308(b)], Dec. 21,
    2000, 114 Stat. 2763, 2763A-45, provided that: "The amendment made
    by subsection (a) of this section [amending this section] shall be
    effective for cohort default rate calculations for fiscal years
    1997 and 1998."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by sections 102(b)(2) and 429(a), (b), (d) of Pub. L.
    105-244 effective Oct. 1, 1998, except as otherwise provided in
    Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as a
    note under section 1001 of this title.
      Pub. L. 105-244, title IV, Sec. 429(c)(2), Oct. 7, 1998, 112
    Stat. 1708, provided that: "The amendment made by paragraph (1)
    [amending this section] shall apply with respect to loans for which
    the first day of delinquency occurs on or after the date of
    enactment of this Act [Oct. 7, 1998]."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective on reorganization
    effective date as defined in section 1087-3(h) of this title, see
    section 101(e) [title VI, Sec. 602(b)(1)(B)] of Pub. L. 104-208,
    set out as a note under section 1078-3 of this title.

                     EFFECTIVE DATE OF 1993 AMENDMENTS                 
      Amendments by section 2(c)(55), (60)(B) of Pub. L. 103-208
    applicable with respect to determination (and appeals from
    determinations) of cohort default rates for fiscal year 1989 and
    any succeeding fiscal year, amendments by section 2(c)(56)-(58),
    (61) of Pub. L. 103-208 effective, except as otherwise provided, as
    if included in the Higher Education Amendments of 1992, Pub. L. 102-
    325, amendment by section 2(c)(59) of Pub. L. 103-208 effective on
    and after 30 days after Dec. 20, 1993, amendment by section
    2(c)(60)(A) of Pub. L. 103-208 effective on and after Oct. 1, 1994,
    and amendment by section 2(c)(62) effective on and after Dec. 20,
    1993, see section 5(a), (b)(2), (3), (7), (8) of Pub. L. 103-208,
    set out as a note under section 1051 of this title.
      Amendment by section 4046(b)(1) of Pub. L. 103-66 effective July
    1, 1994, see section 4046(c) of Pub. L. 103-66, set out as a note
    under section 1078-3 of this title.

                     EFFECTIVE DATE OF 1991 AMENDMENT                 
      Section 2(d)(1) of Pub. L. 102-26 provided that: "The amendments
    made by this section [amending this section and sections 1078-1,
    1088, 1091, 1094, and 1141 of this title] shall apply to any grant,
    loan, or work assistance to cover the cost of instruction for
    periods of enrollment beginning on or after July 1, 1991."

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 3004(d) of Pub. L. 101-508 provided that: "The amendments
    made by this section [amending this section, section 1078 of this
    title, and provisions set out as a note under section 1078-1 of
    this title] shall be effective July 1, 1991, except that the
    amendment made by subsection (b) [amending section 1078 of this
    title] shall be effective upon enactment."

                     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, with subsec. (d)(5) of this
    section effective 30 days after Oct. 17, 1986, see section 402(b)
    of Pub. L. 99-498, set out as a note under section 1071 of this
    title.

-CROSS-
               DEFINITION OF INSTITUTION OF HIGHER EDUCATION           
      Section 427(b)(2) of Pub. L. 102-325 provided that: "With respect
    to reference in any other provision of law to the definition of
    institution of higher education contained in section 435(b) of the
    Act [former 20 U.S.C. 1085(b)], such provision shall be deemed to
    refer to section 481(a) of the Act [former 20 U.S.C. 1088(a)]."

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1086                                            01/03/2007

-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. 1086. Delegation of functions

-STATUTE-
    (a) In general
      An eligible lender or guaranty agency that contracts with another
    entity to perform any of the lender's or agency's functions under
    this subchapter and part C of subchapter I of chapter 34 of title
    42, or otherwise delegates the performance of such functions to
    such other entity - 
        (1) shall not be relieved of the lender's or agency's duty to
      comply with the requirements of this subchapter and part C of
      subchapter I of chapter 34 of title 42; and
        (2) shall monitor the activities of such other entity for
      compliance with such requirements.
    (b) Special rule
      A lender that holds a loan made under this part in the lender's
    capacity as a trustee is responsible for complying with all
    statutory and regulatory requirements imposed on any other holder
    of a loan made under this part.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 436, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1413; amended Pub. L. 105-
    244, title IV, Sec. 430, Oct. 7, 1998, 112 Stat. 1709.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1086, Pub. L. 89-329, title IV, Sec. 436, as
    added Pub. L. 89-752, Sec. 12, Nov. 3, 1966, 80 Stat. 1244; amended
    Pub. L. 90-575, title I, Sec. 116(b)(5), Oct. 16, 1968, 82 Stat.
    1024; Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 1976, 90 Stat.
    2132; Pub. L. 96-374, title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94
    Stat. 1503, related to a District of Columbia student loan
    insurance program, prior to the general revision of this part by
    Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Pub. L. 105-244 amended section catchline and text
    generally. Prior to amendment, section authorized establishment of
    a District of Columbia student loan insurance program.

                     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.

-End-



-CITE-
    20 USC Sec. 1087                                            01/03/2007

-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. 1087. Repayment by Secretary of loans of bankrupt, deceased,
      or disabled borrowers; treatment of borrowers attending schools
      that fail to provide a refund, attending closed schools, or
      falsely certified as eligible to borrow

-STATUTE-
    (a) Repayment in full for death and disability
      If a student borrower who has received a loan described in
    subparagraph (A) or (B) of section 1078(a)(1) of this title dies or
    becomes permanently and totally disabled (as determined in
    accordance with regulations of the Secretary), then the Secretary
    shall discharge the borrower's liability on the loan by repaying
    the amount owed on the loan.
    (b) Payment of claims on loans in bankruptcy
      The Secretary shall pay to the holder of a loan described in
    section 1078(a)(1)(A) or (B), 1078-1,(!1) 1078-2, 1078-3, or 1078-8
    of this title, the amount of the unpaid balance of principal and
    interest owed on such loan - 

        (1) when the borrower files for relief under chapter 12 or 13
      of title 11;
        (2) when the borrower who has filed for relief under chapter 7
      or 11 of such title commences an action for a determination of
      dischargeability under section 523(a)(8)(B) of such title; or
        (3) for loans described in section 523(a)(8)(A) of such title,
      when the borrower files for relief under chapter 7 or 11 of such
      title.
    (c) Discharge
      (1) In general
        If a borrower who received, on or after January 1, 1986, a loan
      made, insured, or guaranteed under this part and the student
      borrower, or the student on whose behalf a parent borrowed, is
      unable to complete the program in which such student is enrolled
      due to the closure of the institution or if such student's
      eligibility to borrow under this part was falsely certified by
      the eligible institution or was falsely certified as a result of
      a crime of identity theft, or if the institution failed to make a
      refund of loan proceeds which the institution owed to such
      student's lender, then the Secretary shall discharge the
      borrower's liability on the loan (including interest and
      collection fees) by repaying the amount owed on the loan and
      shall subsequently pursue any claim available to such borrower
      against the institution and its affiliates and principals or
      settle the loan obligation pursuant to the financial
      responsibility authority under subpart 3 of part G of this
      subchapter. In the case of a discharge based upon a failure to
      refund, the amount of the discharge shall not exceed that portion
      of the loan which should have been refunded. The Secretary shall
      report to the Committee on Education and the Workforce of the
      House of Representatives and the Committee on Labor and Human
      Resources of the Senate annually as to the dollar amount of loan
      discharges attributable to failures to make refunds.
      (2) Assignment
        A borrower whose loan has been discharged pursuant to this
      subsection shall be deemed to have assigned to the United States
      the right to a loan refund up to the amount discharged against
      the institution and its affiliates and principals.
      (3) Eligibility for additional assistance
        The period of a student's attendance at an institution at which
      the student was unable to complete a course of study due to the
      closing of the institution shall not be considered for purposes
      of calculating the student's period of eligibility for additional
      assistance under this subchapter and part C of subchapter I of
      chapter 34 of title 42.
      (4) Special rule
        A borrower whose loan has been discharged pursuant to this
      subsection shall not be precluded from receiving additional
      grants, loans, or work assistance under this subchapter and part
      C of subchapter I of chapter 34 of title 42 for which the
      borrower would be otherwise eligible (but for the default on such
      discharged loan). The amount discharged under this subsection
      shall be treated the same as loans under section 1087ee(a)(5) of
      this title.
      (5) Reporting
        The Secretary shall report to credit bureaus with respect to
      loans which have been discharged pursuant to this subsection.
    (d) Repayment of loans to parents
      If a student on whose behalf a parent has received a loan
    described in section 1078-2 of this title dies, then the Secretary
    shall discharge the borrower's liability on the loan by repaying
    the amount owed on the loan.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 437, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1414; amended Pub. L. 102-
    325, title IV, Sec. 428, July 23, 1992, 106 Stat. 551; Pub. L. 103-
    208, Sec. 2(c)(63)-(65), Dec. 20, 1993, 107 Stat. 2469; Pub. L.
    105-244, title IV, Sec. 431, Oct. 7, 1998, 112 Stat. 1709; Pub. L.
    109-171, title VIII, Sec. 8012, Feb. 8, 2006, 120 Stat. 166.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1078-1 of this title, referred to in subsec. (b), was
    repealed by Pub. L. 103-66, title IV, Sec. 4047(b)-(d), Aug. 10,
    1993, 107 Stat. 364, eff. July 1, 1994, except with respect to
    loans provided under that section as it existed prior to Aug. 10,
    1993. Subsequently, a new section 1078-1, relating to voluntary
    flexible agreements with guaranty agencies, was enacted by Pub. L.
    105-244, title IV, Sec. 418, Oct. 7, 1998, 112 Stat. 1691.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087, Pub. L. 89-329, title IV, Sec. 437, as
    added Pub. L. 90-575, title I, Sec. 113(a), Oct. 16, 1968, 82 Stat.
    1020; amended Pub. L. 92-318, title I, Sec. 132D(a), June 23, 1972,
    86 Stat. 263; Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 1976,
    90 Stat. 2133; Pub. L. 96-374, title XIII, Sec. 1391(a)(1), Oct. 3,
    1980, 94 Stat. 1503, related to repayment of loans by Secretary,
    prior to the general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      2006 - Pub. L. 109-171, Sec. 8012(1), in section catchline,
    substituted "schools that fail to provide a refund, attending
    closed schools, or falsely certified as eligible to borrow" for
    "closed schools or falsely certified as eligible to borrow".
      Subsec. (c)(1). Pub. L. 109-171, Sec. 8012(2), inserted "or was
    falsely certified as a result of a crime of identity theft" after
    "falsely certified by the eligible institution" in first sentence.
      1998 - Subsec. (c)(1). Pub. L. 105-244 inserted "or if the
    institution failed to make a refund of loan proceeds which the
    institution owed to such student's lender," after "falsely
    certified by the eligible institution," and inserted at end "In the
    case of a discharge based upon a failure to refund, the amount of
    the discharge shall not exceed that portion of the loan which
    should have been refunded. The Secretary shall report to the
    Committee on Education and the Workforce of the House of
    Representatives and the Committee on Labor and Human Resources of
    the Senate annually as to the dollar amount of loan discharges
    attributable to failures to make refunds."
      1993 - Subsec. (b). Pub. L. 103-208, Sec. 2(c)(63), amended
    heading and text of subsec. (b) generally. Prior to amendment, text
    read as follows: "If the collection of a loan described in
    subparagraph (A) or (B) of section 1078(a)(1) of this title or
    sections 1078-1, 1078-2, 1078-3, or 1078-8 of this title is stayed
    in any action under title 11, the Secretary shall repay the unpaid
    balance of principal and interest owed on the loan."
      Subsec. (c)(1). Pub. L. 103-208, Sec. 2(c)(64), substituted "If a
    borrower" for "If a student borrower", "under this part and the
    student borrower, or the student on whose behalf a parent borrowed,
    is unable" for "under this part is unable", and "in which such
    student is enrolled" for "in which the borrower is enrolled".
      Subsec. (c)(4). Pub. L. 103-208, Sec. 2(c)(65), inserted at end
    "The amount discharged under this subsection shall be treated the
    same as loans under section 1087ee(a)(5) of this title."
      1992 - Pub. L. 102-325 amended section generally, substituting
    subsecs. (a) to (d) for former subsecs. (a) and (b) which related
    to repayment by Secretary of loans of bankrupt, deceased, or
    disabled borrowers.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1087-0                                          01/03/2007

-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. 1087-0. Repealed.

-MISC1-
    Sec. 1087-0. Repealed. Pub. L. 105-244, title IV, Sec. 432, Oct. 7,
      1998, 112 Stat. 1710.
      Section, Pub. L. 89-329, title IV, Sec. 437A, as added Pub. L.
    102-325, title IV, Sec. 429, July 23, 1992, 106 Stat. 552; amended
    Pub. L. 103-208, Sec. 2(c)(66)-(68), Dec. 20, 1993, 107 Stat. 2469,
    related to debt management options.

                         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.

-End-



-CITE-
    20 USC Sec. 1087-1                                          01/03/2007

-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. 1087-1. Special allowances

-STATUTE-
    (a) Findings
      In order to assure (1) that the limitation on interest payments
    or other conditions (or both) on loans made or insured under this
    part, do not impede or threaten to impede the carrying out of the
    purposes of this part or do not cause the return to holders of
    loans to be less than equitable, (2) that incentive payments on
    such loans are paid promptly to eligible lenders, and (3) that
    appropriate consideration of relative administrative costs and
    money market conditions is made in setting the quarterly rate of
    such payments, the Congress finds it necessary to establish an
    improved method for the determination of the quarterly rate of the
    special allowances on such loans, and to provide for a thorough,
    expeditious, and objective examination of alternative methods for
    the determination of the quarterly rate of such allowances.
    (b) Computation and payment
      (1) Quarterly payment based on unpaid balance
        A special allowance shall be paid for each of the 3-month
      periods ending March 31, June 30, September 30, and December 31
      of every year and the amount of such allowance paid to any holder
      with respect to any 3-month period shall be a percentage of the
      average unpaid balance of principal (not including unearned
      interest added to principal) of all eligible loans held by such
      holder during such period.
      (2) Rate of special allowance
        (A) Subject to subparagraphs (B), (C), (D), (E), (F), (G), (H),
      and (I) and paragraph (4), the special allowance paid pursuant to
      this subsection on loans shall be computed (i) by determining the
      average of the bond equivalent rates of 91-day Treasury bills
      auctioned for such 3-month period, (ii) by subtracting the
      applicable interest rate on such loans from such average, (iii)
      by adding 3.10 percent to the resultant percent, and (iv) by
      dividing the resultant percent by 4. If such computation produces
      a number less than zero, such loans shall be subject to section
      1077a(f) of this title.
        (B)(i) The quarterly rate of the special allowance for holders
      of loans which were made or purchased with funds obtained by the
      holder from the issuance of obligations, the income from which is
      exempt from taxation under title 26 shall be one-half the
      quarterly rate of the special allowance established under
      subparagraph (A), except that, in determining the rate for the
      purpose of this clause, subparagraph (A)(iii) shall be applied by
      substituting "3.5 percent" for "3.10 percent". Such rate shall
      also apply to holders of loans which were made or purchased with
      funds obtained by the holder from collections or default
      reimbursements on, or interests or other income pertaining to,
      eligible loans made or purchased with funds described in the
      preceding sentence of this subparagraph or from income on the
      investment of such funds. This subparagraph shall not apply to
      loans which were made or insured prior to October 1, 1980.
        (ii) The quarterly rate of the special allowance set under
      clause (i) of this subparagraph shall not be less than 9.5
      percent minus the applicable interest rate on such loans, divided
      by 4.
        (iii) No special allowance may be paid under this subparagraph
      unless the issuer of such obligations complies with subsection
      (d) of this section.
        (iv) Notwithstanding clauses (i) and (ii), the quarterly rate
      of the special allowance for holders of loans which are financed
      with funds obtained by the holder from the issuance of
      obligations originally issued on or after October 1, 1993, or
      refunded after September 30, 2004, the income from which is
      excluded from gross income under title 26, shall be the quarterly
      rate of the special allowance established under subparagraph (A),
      (E), (F), (G), (H), or (I) as the case may be. Such rate shall
      also apply to holders of loans which were made or purchased with
      funds obtained by the holder from collections or default
      reimbursements on, or interest or other income pertaining to,
      eligible loans made or purchased with funds described in the
      preceding sentence of this subparagraph or from income on the
      investment of such funds.
        (v) Notwithstanding clauses (i) and (ii), the quarterly rate of
      the special allowance shall be the rate determined under
      subparagraph (A), (E), (F), (G), (H), or (I) of this paragraph,
      or paragraph (4), as the case may be, for a holder of loans that -
       
          (I) were made or purchased with funds - 
            (aa) obtained from the issuance of obligations the income
          from which is excluded from gross income under title 26 and
          which obligations were originally issued before October 1,
          1993; or
            (bb) obtained from collections or default reimbursements
          on, or interest or other income pertaining to, eligible loans
          made or purchased with funds described in division (aa), or
          from income on the investment of such funds; and

          (II) are - 
            (aa) financed by such an obligation that, after September
          30, 2004, has matured or been retired or defeased;
            (bb) refinanced after September 30, 2004, with funds
          obtained from a source other than funds described in
          subclause (I) of this clause; or
            (cc) sold or transferred to any other holder after
          September 30, 2004.

        (vi) Notwithstanding clauses (i), (ii), and (v), but subject to
      clause (vii), the quarterly rate of the special allowance shall
      be the rate determined under subparagraph (A), (E), (F), (G),
      (H), or (I) of this paragraph, as the case may be, for a holder
      of loans - 
          (I) that were made or purchased on or after February 8, 2006;
        or
          (II) that were not earning a quarterly rate of special
        allowance determined under clauses (i) or (ii) of subparagraph
        (B) of this paragraph as of February 8, 2006.

        (vii) Clause (vi) shall be applied by substituting "December
      31, 2010" for "February 8, 2006" in the case of a holder of loans
      that - 
          (I) was, as of February 8, 2006, and during the quarter for
        which the special allowance is paid, a unit of State or local
        government or a nonprofit private entity;
          (II) was, as of February 8, 2006, and during such quarter,
        not owned or controlled by, or under common ownership or
        control with, a for-profit entity; and
          (III) held, directly or through any subsidiary, affiliate, or
        trustee, a total unpaid balance of principal equal to or less
        than $100,000,000 on loans for which special allowances were
        paid under this subparagraph in the most recent quarterly
        payment prior to September 30, 2005.

        (C)(i) In the case of loans made before October 1, 1992,
      pursuant to section 1078-1 (!1) or 1078-2 of this title for which
      the interest rate is determined under section 1077a(c)(4) of this
      title, a special allowance shall not be paid unless the rate
      determined for any 12-month period under subparagraph (B) of such
      section exceeds 12 percent.

        (ii) Subject to subparagraphs (G), (H), and (I) in the case of
      loans disbursed on or after October 1, 1992, pursuant to section
      1078-1 (!1) or 1078-2 of this title for which the interest rate
      is determined under section 1077a(c)(4) of this title, a special
      allowance shall not be paid unless the rate determined for any 12-
      month period under section 1077a(c)(4)(B) of this title exceeds -
       
          (I) 11 percent in the case of a loan under section 1078-1
        (!1) of this title; or
          (II) 10 percent in the case of a loan under section 1078-2 of
        this title.

        (D)(i) In the case of loans made or purchased directly from
      funds loaned or advanced pursuant to a qualified State
      obligation, subparagraph (A)(iii) shall be applied by
      substituting "3.5 percent" for "3.10 percent".
        (ii) For the purpose of division (i) of this subparagraph, the
      term "qualified State obligation" means - 
          (I) an obligation of the Maine Educational Loan Marketing
        Corporation to the Student Loan Marketing Association pursuant
        to an agreement entered into on January 31, 1984; or
          (II) an obligation of the South Carolina Student Loan
        Corporation to the South Carolina National Bank pursuant to an
        agreement entered into on July 30, 1986.

        (E) In the case of any loan for which the applicable rate of
      interest is described in section 1077a(g)(2) of this title,
      subparagraph (A)(iii) shall be applied by substituting "2.5
      percent" for "3.10 percent".
        (F) Subject to paragraph (4), the special allowance paid
      pursuant to this subsection on loans for which the applicable
      rate of interest is determined under section 1077a(h) of this
      title shall be computed (i) by determining the applicable bond
      equivalent rate of the security with a comparable maturity, as
      established by the Secretary, (ii) by subtracting the applicable
      interest rates on such loans from such applicable bond equivalent
      rate, (iii) by adding 1.0 percent to the resultant percent, and
      (iv) by dividing the resultant percent by 4. If such computation
      produces a number less than zero, such loans shall be subject to
      section 1077a(f) of this title.
        (G) Loans disbursed between july 1, 1998, and october 1, 1998. -
       
          (i) In general. - Subject to paragraph (4) and clauses (ii),
        (iii), and (iv) of this subparagraph, and except as provided in
        subparagraph (B), the special allowance paid pursuant to this
        subsection on loans for which the first disbursement is made on
        or after July 1, 1998, and before October 1, 1998, shall be
        computed - 
            (I) by determining the average of the bond equivalent rates
          of 91-day Treasury bills auctioned for such 3-month period;
            (II) by subtracting the applicable interest rates on such
          loans from such average bond equivalent rate;
            (III) by adding 2.8 percent to the resultant percent; and
            (IV) by dividing the resultant percent by 4.

          (ii) In school and grace period. - In the case of any loan
        for which the first disbursement is made on or after July 1,
        1998, and before October 1, 1998, and for which the applicable
        rate of interest is described in section 1077a(j)(2) of this
        title, clause (i)(III) of this subparagraph shall be applied by
        substituting "2.2 percent" for "2.8 percent".
          (iii) PLUS loans. - In the case of any loan for which the
        first disbursement is made on or after July 1, 1998, and before
        October 1, 1998, and for which the applicable rate of interest
        is described in section 1077a(j)(3) of this title, clause
        (i)(III) of this subparagraph shall be applied by substituting
        "3.1 percent" for "2.8 percent", subject to clause (v) of this
        subparagraph.
          (iv) Consolidation loans. - This subparagraph shall not apply
        in the case of any consolidation loan.
          (v) Limitation on special allowances for PLUS loans. - In the
        case of PLUS loans made under section 1078-2 of this title and
        disbursed on or after July 1, 1998, and before October 1, 1998,
        for which the interest rate is determined under 1077a(j)(3) of
        this title, a special allowance shall not be paid for such loan
        for such (!2) unless the rate determined under subparagraph (A)
        of such section (without regard to subparagraph (B) of such
        section) exceeds 9.0 percent.


        (H) Loans disbursed on or after october 1, 1998, and before
      january 1, 2000. - 
          (i) In general. - Subject to paragraph (4) and clauses (ii),
        (iii), and (iv) of this subparagraph, and except as provided in
        subparagraph (B), the special allowance paid pursuant to this
        subsection on loans for which the first disbursement is made on
        or after October 1, 1998, and before January 1, 2000, shall be
        computed - 
            (I) by determining the average of the bond equivalent rates
          of 91-day Treasury bills auctioned for such 3-month period;
            (II) by subtracting the applicable interest rates on such
          loans from such average bond equivalent rate;
            (III) by adding 2.8 percent to the resultant percent; and
            (IV) by dividing the resultant percent by 4.

          (ii) In school and grace period. - In the case of any loan
        for which the first disbursement is made on or after October 1,
        1998, and before January 1, 2000, and for which the applicable
        rate of interest is described in section 1077a(k)(2) of this
        title, clause (i)(III) of this subparagraph shall be applied by
        substituting "2.2 percent" for "2.8 percent".
          (iii) PLUS loans. - In the case of any loan for which the
        first disbursement is made on or after October 1, 1998, and
        before January 1, 2000, and for which the applicable rate of
        interest is described in section 1077a(k)(3) of this title,
        clause (i)(III) of this subparagraph shall be applied by
        substituting "3.1 percent" for "2.8 percent", subject to clause
        (v) of this subparagraph.
          (iv) Consolidation loans. - In the case of any consolidation
        loan for which the application is received by an eligible
        lender on or after October 1, 1998, and before January 1, 2000,
        and for which the applicable interest rate is determined under
        section 1077a(k)(4) of this title, clause (i)(III) of this
        subparagraph shall be applied by substituting "3.1 percent" for
        "2.8 percent", subject to clause (vi) of this subparagraph.
          (v) Limitation on special allowances for plus loans. - In the
        case of PLUS loans made under section 1078-2 of this title and
        first disbursed on or after October 1, 1998, and before January
        1, 2000, for which the interest rate is determined under
        section 1077a(k)(3) of this title, a special allowance shall
        not be paid for such loan during any 12-month period beginning
        on July 1 and ending on June 30 unless, on the June 1 preceding
        such July 1 - 
            (I) the bond equivalent rate of 91-day Treasury bills
          auctioned at the final auction held prior to such June 1 (as
          determined by the Secretary for purposes of such section);
          plus
            (II) 3.1 percent,

        exceeds 9.0 percent.
          (vi) Limitation on special allowances for consolidation
        loans. - In the case of consolidation loans made under section
        1078-3 of this title and for which the application is received
        on or after October 1, 1998, and before January 1, 2000, for
        which the interest rate is determined under section 1077a(k)(4)
        of this title, a special allowance shall not be paid for such
        loan during any 3-month period ending March 31, June 30,
        September 30, or December 31 unless - 
            (I) the average of the bond equivalent rate of 91-day
          Treasury bills auctioned for such 3-month period; plus
            (II) 3.1 percent,

        exceeds the rate determined under section 1077a(k)(4) of this
        title.

        (I) Loans disbursed on or after january 1, 2000. - 
          (i) In general. - Notwithstanding subparagraphs (G) and (H),
        but subject to paragraph (4) and clauses (ii), (iii), and (iv)
        of this subparagraph, and except as provided in subparagraph
        (B), the special allowance paid pursuant to this subsection on
        loans for which the first disbursement is made on or after
        January 1, 2000, shall be computed - 
            (I) by determining the average of the bond equivalent rates
          of the quotes of the 3-month commercial paper (financial)
          rates in effect for each of the days in such quarter as
          reported by the Federal Reserve in Publication H-15 (or its
          successor) for such 3-month period;
            (II) by subtracting the applicable interest rates on such
          loans from such average bond equivalent rate;
            (III) by adding 2.34 percent to the resultant percent; and
            (IV) by dividing the resultant percent by 4.

          (ii) In school and grace period. - In the case of any loan - 
            (I) for which the first disbursement is made on or after
          January 1, 2000, and before July 1, 2006, and for which the
          applicable rate of interest is described in section
          1077a(k)(2) of this title; or
            (II) for which the first disbursement is made on or after
          July 1, 2006, and for which the applicable rate of interest
          is described in section 1077a(l)(1) of this title, but only
          with respect to (aa) periods prior to the beginning of the
          repayment period of the loan; or (bb) during the periods in
          which principal need not be paid (whether or not such
          principal is in fact paid) by reason of a provision described
          in section 1077(a)(2)(C) or 1078(b)(1)(M) of this title;

        clause (i)(III) of this subparagraph shall be applied by
        substituting "1.74 percent" for "2.34 percent".
          (iii) PLUS loans. - In the case of any loan for which the
        first disbursement is made on or after January 1, 2000, and for
        which the applicable rate of interest is described in section
        1077a(k)(3) or (l)(2) of this title, clause (i)(III) of this
        subparagraph shall be applied by substituting "2.64 percent"
        for "2.34 percent".
          (iv) Consolidation loans. - In the case of any consolidation
        loan for which the application is received by an eligible
        lender on or after January 1, 2000, and for which the
        applicable interest rate is determined under section
        1077a(k)(4) or (l)(3) of this title, clause (i)(III) of this
        subparagraph shall be applied by substituting "2.64 percent"
        for "2.34 percent".
          (v) Recapture of excess interest. - 
            (I) Excess credited. - With respect to a loan on which the
          applicable interest rate is determined under subsection (k)
          or (l) of section 1077a of this title and for which the first
          disbursement of principal is made on or after April 1, 2006,
          if the applicable interest rate for any 3-month period
          exceeds the special allowance support level applicable to
          such loan under this subparagraph for such period, then an
          adjustment shall be made by calculating the excess interest
          in the amount computed under subclause (II) of this clause,
          and by crediting the excess interest to the Government not
          less often than annually.
            (II) Calculation of excess. - The amount of any adjustment
          of interest on a loan to be made under this subsection for
          any quarter shall be equal to - 
              (aa) the applicable interest rate minus the special
            allowance support level determined under this subparagraph;
            multiplied by
              (bb) the average daily principal balance of the loan (not
            including unearned interest added to principal) during such
            calendar quarter; divided by
              (cc) four.

            (III) Special allowance support level. - For purposes of
          this clause, the term "special allowance support level"
          means, for any loan, a number expressed as a percentage equal
          to the sum of the rates determined under subclauses (I) and
          (III) of clause (i), and applying any substitution rules
          applicable to such loan under clauses (ii), (iii), and (iv)
          in determining such sum.
      (3) Contractual right of holders to special allowance
        The holder of an eligible loan shall be deemed to have a
      contractual right against the United States, during the life of
      such loan, to receive the special allowance according to the
      provisions of this section. The special allowance determined for
      any such 3-month period shall be paid promptly after the close of
      such period, and without administrative delay after receipt of an
      accurate and complete request for payment, pursuant to procedures
      established by regulations promulgated under this section.
      (4) Penalty for late payment
        (A) If payments of the special allowances payable under this
      section or of interest payments under section 1078(a) of this
      title with respect to a loan have not been made within 30 days
      after the Secretary has received an accurate, timely, and
      complete request for payment thereof, the special allowance
      payable to such holder shall be increased by an amount equal to
      the daily interest accruing on the special allowance and interest
      benefits payments due the holder.
        (B) Such daily interest shall be computed at the daily
      equivalent rate of the sum of the special allowance rate computed
      pursuant to paragraph (2) and the interest rate applicable to the
      loan and shall be paid for the later of (i) the 31st day after
      the receipt of such request for payment from the holder, or (ii)
      the 31st day after the final day of the period or periods covered
      by such request, and shall be paid for each succeeding day until,
      and including, the date on which the Secretary authorizes
      payment.
        (C) For purposes of reporting to the Congress the amounts of
      special allowances paid under this section, amounts of special
      allowances paid pursuant to this paragraph shall be segregated
      and reported separately.
      (5) "Eligible loan" defined
        As used in this section, the term "eligible loan" means a loan -
       
          (A)(i) on which a portion of the interest is paid on behalf
        of the student and for the student's account to the holder of
        the loan under section 1078(a) of this title;
          (ii) which is made under section 1078-1,(!3) 1078-2, 1078-3,
        1078-8, or 1087-2(o) of this title; or

          (iii) which was made prior to October 1, 1981; and
          (B) which is insured under this part, or made under a program
        covered by an agreement under section 1078(b) of this title.

      As used in this section, the term "eligible loan" includes all
      loans subject to section 1078-9 of this title.
      (6) Regulation of time and manner of payment
        The Secretary shall pay the holder of an eligible loan, at such
      time or times as are specified in regulations, a special
      allowance prescribed pursuant to this subsection subject to the
      condition that such holder shall submit to the Secretary, at such
      time or times and in such a manner as the Secretary may deem
      proper, such information as may be required by regulation for the
      purpose of enabling the Secretary to carry out his functions
      under this section and to carry out the purposes of this section.
      (7) Use of average quarterly balance
        The Secretary shall permit lenders to calculate interest
      benefits and special allowance through the use of the average
      quarterly balance method until July 1, 1988.
    (c) Origination fees from students
      (1) Deduction from interest and special allowance subsidies
        (A) Notwithstanding subsection (b) of this section, the
      Secretary shall collect the amount the lender is authorized to
      charge as an origination fee in accordance with paragraph (2) of
      this subsection - 
          (i) by reducing the total amount of interest and special
        allowance payable under section 1078(a)(3)(A) of this title and
        subsection (b) of this section, respectively, to any holder; or
          (ii) directly from the holder of the loan, if the lender
        fails or is not required to bill the Secretary for interest and
        special allowance or withdraws from the program with unpaid
        loan origination fees.

        (B) If the Secretary collects the origination fee under this
      subsection through the reduction of interest and special
      allowance, and the total amount of interest and special allowance
      payable under section 1078(a)(3)(A) of this title and subsection
      (b) of this section, respectively, is less than the amount the
      lender was authorized to charge borrowers for origination fees in
      that quarter, the Secretary shall deduct the excess amount from
      the subsequent quarters' payments until the total amount has been
      deducted.
      (2) Amount of origination fees
        (A) In general
          Subject to paragraph (6) of this subsection, with respect to
        any loan (including loans made under section 1078-8 of this
        title, but excluding loans made under sections 1078-3 and 1087-
        2(o) of this title) for which a completed note or other
        written evidence of the loan was sent or delivered to the
        borrower for signing on or after 10 days after August 13, 1981,
        each eligible lender under this part is authorized to charge
        the borrower an origination fee in an amount not to exceed 3.0
        percent of the principal amount of the loan, to be deducted
        proportionately from each installment payment of the proceeds
        of the loan prior to payment to the borrower. Except as
        provided in paragraph (8), a lender that charges an origination
        fee under this paragraph shall assess the same fee to all
        student borrowers.
        (B) Subsequent reductions
          Subparagraph (A) shall be applied to loans made under this
        part (other than loans made under sections 1078-3 and 1087-2(o)
        of this title) - 
            (i) by substituting "2.0 percent" for "3.0 percent" with
          respect to loans for which the first disbursement of
          principal is made on or after July 1, 2006, and before July
          1, 2007;
            (ii) by substituting "1.5 percent" for "3.0 percent" with
          respect to loans for which the first disbursement of
          principal is made on or after July 1, 2007, and before July
          1, 2008;
            (iii) by substituting "1.0 percent" for "3.0 percent" with
          respect to loans for which the first disbursement of
          principal is made on or after July 1, 2008, and before July
          1, 2009;
            (iv) by substituting "0.5 percent" for "3.0 percent" with
          respect to loans for which the first disbursement of
          principal is made on or after July 1, 2009, and before July
          1, 2010; and
            (v) by substituting "0.0 percent" for "3.0 percent" with
          respect to loans for which the first disbursement of
          principal is made on or after July 1, 2010.
      (3) Relation to applicable interest
        Such origination fee shall not be taken into account for
      purposes of determining compliance with section 1077a of this
      title.
      (4) Disclosure required
        The lender shall disclose to the borrower the amount and method
      of calculating the origination fee.
      (5) Prohibition on department compelling origination fee
        collections by lenders
        Nothing in this subsection shall be construed to permit the
      Secretary to require any lender that is making loans that are
      insured or guaranteed under this part, but for which no amount
      will be payable for interest under section 1078(a)(3)(A) of this
      title or for special allowances under subsection (b) of this
      section, to collect any origination fee or to submit the sums
      collected as origination fees to the United States. The Secretary
      shall, not later than January 1, 1987, return to any such lender
      any such sums collected before October 17, 1986, together with
      interest thereon.
      (6) SLS and PLUS loans
        With respect to any loans made under section 1078-1 (!4) or
      1078-2 of this title on or after October 1, 1992, each eligible
      lender under this part shall charge the borrower an origination
      fee of 3.0 percent of the principal amount of the loan, to be
      deducted proportionately from each installment payment of the
      proceeds of the loan prior to payments to the borrower.

      (7) Distribution of origination fees
        All origination fees collected pursuant to this section on
      loans authorized under section 1078-1 (!4) or 1078-2 of this
      title shall be paid to the Secretary by the lender and deposited
      in the fund authorized under section 1081 of this title.
      (8) Exception
        Notwithstanding paragraph (2), a lender may assess a lesser
      origination fee for a borrower demonstrating greater financial
      need as determined by such borrower's adjusted gross family
      income.
    (d) Loan fees from lenders
      (1) Deduction from interest and special allowance subsidies
        (A) In general
          Notwithstanding subsection (b) of this section, the Secretary
        shall collect a loan fee in an amount determined in accordance
        with paragraph (2) - 
            (i) by reducing the total amount of interest and special
          allowance payable under section 1078(a)(3)(A) of this title
          and subsection (b) of this section, respectively, to any
          holder of a loan; or
            (ii) directly from the holder of the loan, if the lender - 
              (I) fails or is not required to bill the Secretary for
            interest and special allowance payments; or
              (II) withdraws from the program with unpaid loan fees.
        (B) Special rule
          If the Secretary collects loan fees under this subsection
        through the reduction of interest and special allowance
        payments, and the total amount of interest and special
        allowance payable under section 1078(a)(3)(A) of this title and
        subsection (b) of this section, respectively, is less than the
        amount of such loan fees, then the Secretary shall deduct the
        amount of the loan fee balance from the amount of interest and
        special allowance payments that would otherwise be payable, in
        subsequent quarterly increments until the balance has been
        deducted.
      (2) Amount of loan fees
        With respect to any loan under this part for which the first
      disbursement was made on or after October 1, 1993, the amount of
      the loan fee which shall be deducted under paragraph (1) shall be
      equal to 0.50 percent of the principal amount of the loan.
      (3) Distribution of loan fees
        The Secretary shall deposit all fees collected pursuant to
      paragraph (3) into the insurance fund established in section 1081
      of this title.
    (e) Nondiscrimination
      In order for the holders of loans which were made or purchased
    with funds obtained by the holder from an Authority issuing
    obligations, the income from which is exempt from taxation under
    title 26, to be eligible to receive a special allowance under
    subsection (b)(2) of this section on any such loans, the Authority
    shall not engage in any pattern or practice which results in a
    denial of a borrower's access to loans under this part because of
    the borrower's race, sex, color, religion, national origin, age,
    disability status, income, attendance at a particular eligible
    institution within the area served by the Authority, length of the
    borrower's educational program, or the borrower's academic year in
    school.
    (f) Regulations to prevent denial of loans to eligible students
      The Secretary shall adopt or amend appropriate regulations
    pertaining to programs carried out under this part to prevent,
    where practicable, any practices which the Secretary finds have
    denied loans to a substantial number of eligible students.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 438, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1414; amended Pub. L. 100-
    50, Sec. 10(d)(2), (bb), (cc), June 3, 1987, 101 Stat. 342, 347;
    Pub. L. 100-369, Sec. 7(c), July 18, 1988, 102 Stat. 837; Pub. L.
    102-325, title IV, Sec. 430, July 23, 1992, 106 Stat. 553; Pub. L.
    103-66, title IV, Secs. 4102(a), 4103, 4105, 4111, Aug. 10, 1993,
    107 Stat. 366, 367, 368, 370; Pub. L. 105-178, title VIII, Sec.
    8301(b), June 9, 1998, 112 Stat. 497; Pub. L. 105-244, title IV,
    Secs. 416(b)(1), (3), 433(a)-(d)(1), Oct. 7, 1998, 112 Stat. 1680,
    1682, 1710, 1711; Pub. L. 106-170, title IV, Sec. 409(a), Dec. 17,
    1999, 113 Stat. 1914; Pub. L. 107-139, Sec. 2, Feb. 8, 2002, 116
    Stat. 10; Pub. L. 108-409, Sec. 2, Oct. 30, 2004, 118 Stat. 2299;
    Pub. L. 109-150, Sec. 2(b), (c)(2), Dec. 30, 2005, 119 Stat. 2884;
    Pub. L. 109-171, title VIII, Secs. 8006(b)(1), 8008(c)(1), 8013(a)-
    (c)(1), (d)(1), Feb. 8, 2006, 120 Stat. 159, 162, 166, 167.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1078-1 of this title, referred to in subsecs. (b)(2)(C),
    (5)(A)(ii) and (c)(6), (7), was repealed by Pub. L. 103-66, title
    IV, Sec. 4047(b)-(d), Aug. 10, 1993, 107 Stat. 364, eff. July 1,
    1994, except with respect to loans provided under that section as
    it existed prior to Aug. 10, 1993. Subsequently, a new section 1078-
    1, relating to voluntary flexible agreements with guaranty
    agencies, was enacted by Pub. L. 105-244, title IV, Sec. 418, Oct.
    7, 1998, 112 Stat. 1691.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087-1, Pub. L. 89-329, title IV, Sec. 438, as
    added Pub. L. 92-318, title I, Sec. 132E(a), June 23, 1972, 86
    Stat. 264; amended Pub. L. 94-482, title I, Sec. 127(a), Oct. 12,
    1976, 90 Stat. 2133; Pub. L. 95-43, Sec. 1(a)(37), June 15, 1977,
    91 Stat. 216; Pub. L. 96-49, Sec. 5(c)(1), Aug. 13, 1979, 93 Stat.
    352; Pub. L. 96-374, title IV, Secs. 420(a), 451(d), title XIII,
    Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1425, 1458, 1503; Pub. L.
    97-35, title V, Secs. 532(b)(4), 534(b), 536(a), Aug. 13, 1981, 95
    Stat. 452, 454, 455; Pub. L. 98-79, Sec. 7(a), (c), Aug. 15, 1983,
    97 Stat. 482, 483; Pub. L. 99-272, title XVI, Secs. 16013(d),
    16017(b)(3), (c), Apr. 7, 1986, 100 Stat. 340, 347, related to
    special allowances, prior to the general revision of this part by
    Pub. L. 99-498.
      A prior section 1087-1a, Pub. L. 96-374, title IV, Sec. 420(b),
    Oct. 3, 1980, 94 Stat. 1427, related to eligibility for special
    allowances covering loans made or purchased with funds obtained
    from Authorities issuing tax exempt obligations, and established
    requirement relating to plans for doing business, prior to repeal
    by Pub. L. 98-79, Sec. 7(b), Aug. 15, 1983, 97 Stat. 483.

                                AMENDMENTS                            
      2006 - Subsec. (b)(2)(B). Pub. L. 109-171, Sec. 8013(d)(1),
    repealed Pub. L. 109-150, Sec. 2(b), (c)(2). See 2005 Amendment
    note below.
      Pub. L. 109-171, Sec. 8013(c)(1), amended directory language of
    Pub. L. 108-409, Sec. 2. See 2004 Amendment note below.
      Subsec. (b)(2)(B)(iv). Pub. L. 109-171, Sec. 8013(a)(1), struck
    out "and before January 1, 2006," after "September 30, 2004,".
      Subsec. (b)(2)(B)(v)(II)(aa), (bb). Pub. L. 109-171, Sec.
    8013(a)(2)(A), struck out "and before January 1, 2006," after
    "September 30, 2004,".
      Subsec. (b)(2)(B)(v)(II)(cc). Pub. L. 109-171, Sec.
    8013(a)(2)(B), struck out ", and before January 1, 2006" after
    "September 30, 2004".
      Subsec. (b)(2)(B)(vi), (vii). Pub. L. 109-171, Sec. 8013(b),
    added cls. (vi) and (vii).
      Subsec. (b)(2)(I)(iii). Pub. L. 109-171, Sec. 8006(b)(1)(A),
    struck out ", subject to clause (v) of this subparagraph" before
    period at end.
      Subsec. (b)(2)(I)(iv). Pub. L. 109-171, Sec. 8006(b)(1)(B),
    struck out ", subject to clause (vi) of this subparagraph" before
    period at end.
      Subsec. (b)(2)(I)(v) to (vii). Pub. L. 109-171, Sec.
    8006(b)(1)(C), added cl. (v) and struck out former cls. (v) to
    (vii), which related to limitation on special allowances for plus
    loans before July 1, 2006, limitation on special allowances for
    consolidation loans, and limitation on special allowances for plus
    loans on or after July 1, 2006, respectively.
      Subsec. (c)(2). Pub. L. 109-171, Sec. 8008(c)(1), reenacted par.
    heading, designated existing provisions as subpar. (A), inserted
    subpar. (A) heading, and added subpar. (B).
      2005 - Subsec. (b)(2)(B). Pub. L. 109-150, Sec. 2(c)(2), which
    directed amendment of directory language of Pub. L. 108-409, Sec.
    2, was repealed by Pub. L. 109-171, Sec. 8013(d)(1). See 2004
    Amendment note and Effective Date of 2006 Amendment note below.
      Subsec. (b)(2)(B)(iv), (v)(II). Pub. L. 109-150, Sec. 2(b), which
    directed substitution of "April 1, 2006" for "January 1, 2006"
    wherever appearing, was repealed by Pub. L. 109-171, Sec.
    8013(d)(1). See Effective Date of 2006 Amendment note below.
      2004 - Subsec. (b)(2)(B). Pub. L. 108-409, Sec. 2, as amended by
    Pub. L. 109-171, Sec. 8013(c)(1), substituted "this clause" for
    "this division" in cl. (i) and "clause (i) of this subparagraph"
    for "division (i) of this subparagraph" in cl. (ii), inserted "or
    refunded after September 30, 2004, and before January 1, 2006,"
    after "October 1, 1993," in cl. (iv), and added cl. (v). Pub. L.
    109-150, Sec. 2(c)(2), which made an amendment to directory
    language of Pub. L. 108-409, Sec. 2, identical to that made by Pub.
    L. 109-171, Sec. 8013(c)(1), was repealed by Pub. L. 109-171, Sec.
    8013(d)(1). See Effective Date of 2006 Amendment note below.
      2002 - Subsec. (b)(2)(I). Pub. L. 107-139, Sec. 2(1), struck out
    ", and before july 1, 2003" after "january 1, 2000" in heading.
      Subsec. (b)(2)(I)(i). Pub. L. 107-139, Sec. 2(2), struck out "and
    before July 1, 2003," after "January 1, 2000," in introductory
    provisions.
      Subsec. (b)(2)(I)(ii). Pub. L. 107-139, Sec. 2(3), added cl. (ii)
    and struck out heading and text of former cl. (ii). Text read as
    follows: "In the case of any loan for which the first disbursement
    is made on or after January 1, 2000, and before July 1, 2003, and
    for which the applicable rate of interest is described in section
    1077a(k)(2) of this title, clause (i)(III) of this subparagraph
    shall be applied by substituting '1.74 percent' for '2.34
    percent'."
      Subsec. (b)(2)(I)(iii). Pub. L. 107-139, Sec. 2(2), (4), struck
    out "and before July 1, 2003," after "January 1, 2000," and
    inserted "or (l)(2)" after "section 1077a(k)(3)".
      Subsec. (b)(2)(I)(iv). Pub. L. 107-139, Sec. 2(2), (5), inserted
    "or (l)(3)" after "section 1077a(k)(4)" and struck out "and before
    July 1, 2003," after "January 1, 2000,".
      Subsec. (b)(2)(I)(v). Pub. L. 107-139, Sec. 2(6), inserted
    "before july 1, 2006" after "plus loans" in heading and substituted
    "July 1, 2006," for "July 1, 2003," in introductory provisions.
      Subsec. (b)(2)(I)(vi). Pub. L. 107-139, Sec. 2(2), (7), in
    introductory provisions, struck out "and before July 1, 2003,"
    after "January 1, 2000," and inserted "or (l)(3)" after "section
    1077a(k)(4)", and in concluding provisions, substituted "section
    1077a(k)(4) or (l)(3) of this title, whichever is applicable" for
    "section 1077a(k)(4) of this title".
      Subsec. (b)(2)(I)(vii). Pub. L. 107-139, Sec. 2(8), added cl.
    (vii).
      1999 - Subsec. (b)(2)(A). Pub. L. 106-170, Sec. 409(a)(1),
    substituted "(G), (H), and (I)" for "(G), and (H)" in first
    sentence.
      Subsec. (b)(2)(B)(iv). Pub. L. 106-170, Sec. 409(a)(2),
    substituted "(G), (H), or (I)" for "(G), or (H)" in first sentence.
      Subsec. (b)(2)(C)(ii). Pub. L. 106-170, Sec. 409(a)(3),
    substituted "(G), (H), and (I)" for "(G) and (H)" in introductory
    provisions.
      Subsec. (b)(2)(H). Pub. L. 106-170, Sec. 409(a)(4), (5),
    substituted "january 1, 2000" for "july 1, 2003" in subpar. heading
    and "January 1, 2000" for "July 1, 2003" in text wherever
    appearing.
      Subsec. (b)(2)(I). Pub. L. 106-170, Sec. 409(a)(6), added subpar.
    (I).
      1998 - Subsec. (b)(2)(A). Pub. L. 105-244, Sec. 416(b)(3)(A),
    substituted "(F), (G), and (H)" for "(F), and (G)".
      Pub. L. 105-178, Sec. 8301(b)(2)(A), substituted "(E), (F), and
    (G)" for "(E), and (F)".
      Subsec. (b)(2)(B)(iv). Pub. L. 105-244, Sec. 416(b)(3)(B),
    substituted "(F), (G), or (H)" for "(F), or (G)".
      Pub. L. 105-178, Sec. 8301(b)(2)(B), substituted "(E), (F), or
    (G)" for "(E), or (F)".
      Subsec. (b)(2)(C)(ii). Pub. L. 105-244, Sec. 416(b)(3)(C),
    substituted "subparagraphs (G) and (H)" for "subparagraph (G)".
      Pub. L. 105-178, Sec. 8301(b)(2)(C), substituted "Subject to
    subparagraph (G), in the case" for "In the case".
      Subsec. (b)(2)(G). Pub. L. 105-178, Sec. 8301(b)(1), added
    subpar. (G).
      Subsec. (b)(2)(H). Pub. L. 105-244, Sec. 416(b)(1), added subpar.
    (H).
      Subsec. (c)(1). Pub. L. 105-244, Sec. 433(a), amended heading and
    text of par. (1) generally. Prior to amendment, text read as
    follows: "Notwithstanding subsection (b) of this section, the total
    amount of interest and special allowance payable under section
    1078(a)(3)(A) of this title and subsection (b) of this section,
    respectively, to any holder shall be reduced by the Secretary by
    the amount which the lender is authorized to charge as an
    origination fee in accordance with paragraph (2) of this
    subsection. If the total amount of interest and special allowance
    payable under section 1078(a)(3)(A) of this title and subsection
    (b) of this section, respectively, is less than the amount the
    lender was authorized to charge borrowers for origination fees in
    that quarter, the Secretary shall deduct the excess amount from the
    subsequent quarters' payments until the total amount has been
    deducted."
      Subsec. (c)(2). Pub. L. 105-244, Sec. 433(b)(1), substituted
    "(including loans made under section 1078-8 of this title, but
    excluding" for "(other than" and inserted at end "Except as
    provided in paragraph (8), a lender that charges an origination fee
    under this paragraph shall assess the same fee to all student
    borrowers."
      Subsec. (c)(8). Pub. L. 105-244, Sec. 433(b)(2), added par. (8).
      Subsec. (d)(1). Pub. L. 105-244, Sec. 433(c), amended heading and
    text of par. (1) generally. Prior to amendment, text read as
    follows: "Notwithstanding subsection (b) of this section, the
    Secretary shall reduce the total amount of interest and special
    allowance payable under section 1078(a)(3)(A) of this title and
    subsection (b) of this section, respectively, to any holder of a
    loan by a loan fee in an amount determined in accordance with
    paragraph (2) of this subsection. If the total amount of interest
    and special allowance payable under section 1078(a)(3)(A) of this
    title and subsection (b) of this section, respectively, is less
    than the amount of such loan fee, then the Secretary shall deduct
    such excess amount from subsequent quarters' payments until the
    total amount has been deducted."
      Subsec. (e). Pub. L. 105-244, Sec. 433(d)(1), amended heading and
    text of subsec. (e) generally. Prior to amendment, subsec. (e)
    related to lending from proceeds of tax exempt obligations.
      1993 - Subsec. (b)(2)(A). Pub. L. 103-66, Sec. 4111(1),
    substituted "subparagraphs (B), (C), (D), (E), and (F)" for
    "subparagraphs (B), (C), and (D)" and "section 1077a(f)" for
    "section 1077a(e)".
      Subsec. (b)(2)(B)(iv). Pub. L. 103-66, Sec. 4105, added cl. (iv).
      Subsec. (b)(2)(E), (F). Pub. L. 103-66, Sec. 4111(2), added
    subpars. (E) and (F).
      Subsec. (c). Pub. L. 103-66, Sec. 4102(a)(1), inserted "from
    students" after "origination fees" in heading.
      Subsec. (c)(2). Pub. L. 103-66, Sec. 4102(a)(2)(A), substituted
    "sections 1078-3 and 1087-2(o)" for "sections 1078-1, 1078-2, 1078-
    3, and 1087-2(o)" and "3.0 percent" for "5 percent".
      Subsec. (c)(6). Pub. L. 103-66, Sec. 4102(a)(2)(B), substituted
    "3.0 percent" for "5 percent".
      Subsecs. (d) to (f). Pub. L. 103-66, Sec. 4103, added subsec. (d)
    and redesignated former subsecs. (d) and (e) as (e) and (f),
    respectively.
      1992 - Subsec. (b)(2)(A). Pub. L. 102-325, Sec. 430(a)(1), (2),
    substituted "3.10" for "3.25" and inserted at end "If such
    computation produces a number less than zero, such loans shall be
    subject to section 1077a(e) of this title."
      Subsec. (b)(2)(B)(i). Pub. L. 102-325, Sec. 430(a)(3),
    substituted "3.10" for "3.25".
      Subsec. (b)(2)(B)(ii). Pub. L. 102-325, Sec. 430(a)(4), added cl.
    (ii) and struck out former cl. (ii) which read as follows: "The
    rate set under division (i) shall not be less than (I) 2.5 percent
    per year in the case of loans for which the applicable interest
    rate is 7 percent per year, (II) 1.5 percent per year in the case
    of loans for which the applicable interest rate is 8 percent per
    year, or (III) 0.5 percent in the case of loans for which the
    applicable rate is 9 percent per year."
      Subsec. (b)(2)(C). Pub. L. 102-325, Sec. 430(a)(5), designated
    existing provision as cl. (i), inserted "before October 1, 1992,"
    after "made", and added cl. (ii).
      Subsec. (b)(2)(D)(i). Pub. L. 102-325, Sec. 430(a)(6),
    substituted "3.10" for "3.25".
      Subsec. (b)(5). Pub. L. 102-325, Sec. 430(c), inserted closing
    provision which defined "eligible loan" as used in this section to
    include all loans subject to section 1078-9 of this title.
      Subsec. (b)(5)(A)(ii). Pub. L. 102-325, Sec. 430(b), inserted
    "1078-8," after "1078-3,".
      Subsec. (c)(2). Pub. L. 102-325, Sec. 430(d)(1), substituted
    "Subject to paragraph (6) of this subsection, with" for "With".
      Subsec. (c)(6), (7). Pub. L. 102-325, Sec. 430(d)(2), added pars.
    (6) and (7).
      Subsec. (d)(2)(C). Pub. L. 102-325, Sec. 430(e), struck out "or
    discount" after "premium".
      1988 - Subsecs. (b)(2)(B)(i), (d)(1), (3). Pub. L. 100-369
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      1987 - Subsec. (b)(2)(B)(iii). Pub. L. 100-50, Sec. 10(bb)(1),
    substituted "subsection (d) of this section" for "subsection (c) of
    this section".
      Subsec. (b)(2)(C). Pub. L. 100-50, Sec. 10(d)(2), substituted "12
    percent" for "12.5 percent".
      Subsec. (b)(7). Pub. L. 100-50, Sec. 10(bb)(2), added par. (7).
      Subsec. (d)(4)(C). Pub. L. 100-50, Sec. 10(cc), struck out ", as
    evidenced by the information submitted under paragraph (2)(G) of
    this subsection" after "fiscal year".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.
      Pub. L. 109-171, title VIII, Sec. 8006(b)(2), Feb. 8, 2006, 120
    Stat. 160, provided that: "The amendments made by this subsection
    [amending this section] shall not apply with respect to any special
    allowance payment made under section 438 of the Higher Education
    Act of 1965 (20 U.S.C. 1087-1) before April 1, 2006."
      Pub. L. 109-171, title VIII, Sec. 8013(c)(3), Feb. 8, 2006, 120
    Stat. 167, provided that: "The amendment made by paragraph (1)
    [amending this section] shall be effective as if enacted on October
    30, 2004, and the amendment made by paragraph (2) [amending
    provisions set out as a note under section 1078-10 of this title]
    shall be effective as if enacted on October 1, 2005."
      Pub. L. 109-171, title VIII, Sec. 8013(d)(2), Feb. 8, 2006, 120
    Stat. 167, provided that: "The amendments made by subsections (a)
    and (c) of this section [amending this section and provisions set
    out as a note under section 1078-10 of this title] shall be
    effective as if the amendments made in subsections (b) and (c) of
    section 2 of the Second Higher Education Extension Act of 2005
    [Pub. L. 109-150, amending this section and provisions set out as a
    note under section 1078-10 of this title] had not been enacted."

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Pub. L. 109-150, Sec. 2(d), Dec. 30, 2005, 119 Stat. 2884,
    provided that:
      "(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section [amending this section and
    provisions set out as notes under sections 1001 and 1078-10 of this
    title] are effective upon enactment [Dec. 30, 2005].
      "(2) Exception. - The amendment made by subsection (c)(1)
    [amending provisions set out as a note under section 1078-10 of
    this title] shall take effect as if enacted on October 1, 2005."

                     EFFECTIVE DATE OF 1999 AMENDMENT                 
      Pub. L. 106-170, title IV, Sec. 409(b), Dec. 17, 1999, 113 Stat.
    1916, provided that: "Subparagraph (I) of section 438(b)(2) of the
    Higher Education Act of 1965 (20 U.S.C. 1087-1(b)(2)) as added by
    subsection (a) of this section shall apply with respect to any
    payment pursuant to such section with respect to any 3-month period
    beginning on or after January 1, 2000, for loans for which the
    first disbursement is made after such date."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by section 416(b)(1) and (3) of Pub. L. 105-244
    applicable with respect to any loan made, insured, or guaranteed
    under this part for which the first disbursement is made on or
    after Oct. 1, 1998, and before July 1, 2003, except that such
    amendment is applicable with respect to any loan made under section
    1078-3 of this title for which application is received by an
    eligible lender on or after Oct. 1, 1998, and before July 1, 2003,
    see section 416(c) of Pub. L. 105-244, set out as a note under
    section 1077a of this title.
      Amendment by section 433(a)-(c) of Pub. L. 105-244 effective Oct.
    1, 1998, except as otherwise provided in Pub. L. 105-244, see
    section 3 of Pub. L. 105-244, set out as a note under section 1001
    of this title.
      Pub. L. 105-244, title IV, Sec. 433(d)(2), Oct. 7, 1998, 112
    Stat. 1711, provided that: "The amendment made by paragraph (1)
    [amending this section] shall be effective as of the date the plan
    required by section 438(e)(1) [subsec. (e)(1) of this section] (as
    such section was in effect prior to such amendment) was approved by
    the Secretary or the Governor (whichever was the case). No
    Authority shall have a right or cause of action against the
    Secretary for any amounts paid to or offset by the Secretary
    pursuant to a final settlement agreement entered into prior to July
    1, 1998, resolving any audit or program review findings alleging
    violations of any provision of section 438(e) (as in effect prior
    to such amendment)."

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by section 4102(a) of Pub. L. 103-66 effective July 1,
    1994, see section 4102(d) of Pub. L. 103-66, set out as a note
    under section 1078 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to loans for
    which first disbursement is made on or after Oct. 1, 1992, see
    section 432(a)(13) of Pub. L. 102-325, set out as a note under
    section 1078 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

                              EFFECTIVE DATE                          
      Section effective Oct. 17, 1986, with subsec. (b) of this section
    effective with respect to loans disbursed on or after 30 days after
    Oct. 17, 1986, or made to cover the costs of instruction for
    periods of enrollment beginning on or after 30 days after Oct. 17,
    1986, and subsec. (d) of this section effective 30 days after Oct.
    17, 1986, see section 402(b) of Pub. L. 99-498, set out as a note
    under section 1071 of this title.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) So in original.

    (!3) See References in Text note below.

    (!4) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1087-2                                          01/03/2007

-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. 1087-2. Student Loan Marketing Association

-STATUTE-
    (a) Purpose
      The Congress hereby declares that it is the purpose of this
    section (1) to establish a private corporation which will be
    financed by private capital and which will serve as a secondary
    market and warehousing facility for student loans, including loans
    which are insured by the Secretary under this part or by a guaranty
    agency, and which will provide liquidity for student loan
    investments; (2) in order to facilitate secured transactions
    involving student loans, to provide for perfection of security
    interests in student loans either through the taking of possession
    or by notice filing; and (3) to assure nationwide the establishment
    of adequate loan insurance programs for students, to provide for an
    additional program of loan insurance to be covered by agreements
    with the Secretary.
    (b) Establishment
      (1) In general
        There is hereby created a body corporate to be known as the
      Student Loan Marketing Association (hereinafter referred to as
      the "Association"). The Association shall have succession until
      dissolved. It shall maintain its principal office in the District
      of Columbia and shall be deemed, for purposes of venue and
      jurisdiction in civil actions, to be a resident and citizen
      thereof. Offices may be established by the Association in such
      other place or places as it may deem necessary or appropriate for
      the conduct of its business.
      (2) Exemption from State and local taxes
        The Association, including its franchise, capital, reserves,
      surplus, mortgages, or other security holdings, and income shall
      be exempt from all taxation now or hereafter imposed by any
      State, territory, possession, Commonwealth, or dependency of the
      United States, or by the District of Columbia, or by any county,
      municipality, or local taxing authority, except that any real
      property of the Association shall be subject to State,
      territorial, county, municipal, or local taxation to the same
      extent according to its value as other real property is taxed.
      (3) Appropriations authorized for establishment
        There is hereby authorized to be appropriated to the Secretary
      $5,000,000 for making advances for the purpose of helping to
      establish the Association. Such advances shall be repaid within
      such period as the Secretary may deem to be appropriate in light
      of the maturity and solvency of the Association. Such advances
      shall bear interest at a rate not less than (A) a rate determined
      by the Secretary of the Treasury taking into consideration the
      current average market yield on outstanding marketable
      obligations of the United States with remaining period to
      maturity comparable to the maturity of such advances, adjusted to
      the nearest one-eighth of 1 percent, plus (B) an allowance
      adequate in the judgment of the Secretary to cover administrative
      costs and probable losses. Repayments of such advances shall be
      deposited into miscellaneous receipts of the Treasury.
    (c) Board of Directors
      (1) Composition of Board; Chairman
        (A) The Association shall have a Board of Directors which shall
      consist of 21 persons, 7 of whom shall be appointed by the
      President and shall be representative of the general public. The
      remaining 14 directors shall be elected by the common
      stockholders of the Association entitled to vote pursuant to
      subsection (f) of this section. Commencing with the annual
      shareholders meeting to be held in 1993 - 
          (i) 7 of the elected directors shall be affiliated with an
        eligible institution; and
          (ii) 7 of the elected directors shall be affiliated with an
        eligible lender.

        (B) The President shall designate 1 of the directors to serve
      as Chairman.
      (2) Terms of appointed and elected members
        The directors appointed by the President shall serve at the
      pleasure of the President and until their successors have been
      appointed and have qualified. The remaining directors shall each
      be elected for a term ending on the date of the next annual
      meeting of the common stockholders of the Association, and shall
      serve until their successors have been elected and have
      qualified. Any appointive seat on the Board which becomes vacant
      shall be filled by appointment of the President. Any elective
      seat on the Board which becomes vacant after the annual election
      of the directors shall be filled by the Board, but only for the
      unexpired portion of the term.
      (3) Affiliated members
        For the purpose of this subsection, the references to a
      director "affiliated with the eligible institution" or a director
      "affiliated with an eligible lender" means an individual who is,
      or within 5 years of election to the Board has been, an employee,
      officer, director, or similar official of - 
          (A) an eligible institution or an eligible lender;
          (B) an association whose members consist primarily of
        eligible institutions or eligible lenders; or
          (C) a State agency, authority, instrumentality, commission,
        or similar institution, the primary purpose of which relates to
        educational matters or banking matters.
      (4) Meetings and functions of the Board
        The Board of Directors shall meet at the call of its Chairman,
      but at least semiannually. The Board shall determine the general
      policies which shall govern the operations of the Association.
      The Chairman of the Board shall, with the approval of the Board,
      select, appoint, and compensate qualified persons to fill the
      offices as may be provided for in the bylaws, with such
      functions, powers, and duties as may be prescribed by the bylaws
      or by the Board of Directors, and such persons shall be the
      officers of the Association and shall discharge all such
      functions, powers, and duties.
    (d) Authority of Association
      (1) In general
        The Association is authorized, subject to the provisions of
      this section - 
          (A) pursuant to commitments or otherwise to make advances on
        the security of, purchase, or repurchase, service, sell or
        resell, offer participations, or pooled interests or otherwise
        deal in, at prices and on terms and conditions determined by
        the Association, student loans which are insured by the
        Secretary under this part or by a guaranty agency;
          (B) to buy, sell, hold, underwrite, and otherwise deal in
        obligations, if such obligations are issued, for the purpose of
        making or purchasing insured loans, by a guaranty agency or by
        an eligible lender in a State described in section
        1085(d)(1)(D) or (F) of this title;
          (C) to buy, sell, hold, insure, underwrite, and otherwise
        deal in obligations issued for the purpose of financing or
        refinancing the construction, reconstruction, renovation,
        improvement, or purchase at institutions of higher education of
        any of the following facilities (including the underlying
        property) and materials (including related equipment,
        instrumentation, and furnishings) at an eligible institution of
        higher education:
            (i) educational and training facilities;
            (ii) housing for students and faculties, dining halls,
          student unions, and facilities specifically designed to
          promote fitness and health for students, faculty, and staff
          or for physical education courses; and
            (iii) library facilities, including the acquisition of
          library materials at institutions of higher education;

        except that not more than 30 percent of the value of
        transactions entered into under this subparagraph shall involve
        transactions of the types described in clause (ii);
          (D) to undertake a program of loan insurance pursuant to
        agreements with the Secretary under section 1078 of this title,
        and except with respect to loans under subsection (o) of this
        section or under section 1078-3 of this title, the Secretary
        may enter into an agreement with the Association for such
        purpose only if the Secretary determines that (i) eligible
        borrowers are seeking and unable to obtain loans under this
        part, and (ii) no guaranty agency is capable of or willing to
        provide a program of loan insurance for such borrowers; and
          (E) to undertake any other activity which the Board of
        Directors of the Association determines to be in furtherance of
        the programs of insured student loans authorized under this
        part or will otherwise support the credit needs of students,
        except that - 
            (i) in carrying out all such activities the purpose shall
          always be to provide secondary market and other support for
          lending programs offered by other organizations and not to
          replace or compete with such other programs;
            (ii) nothing in this subparagraph (E) shall be deemed to
          authorize the Association to acquire, own, operate, or
          control any bank, savings and loan association, savings bank
          or credit union; and
            (iii) not later than 30 days prior to the initial
          implementation of a program undertaken pursuant to this
          subparagraph (E), the Association shall advise the Chairman
          and the Ranking Member on the Committee on Labor and Human
          Resources of the Senate and the Chairman and the Ranking
          Member of the Committee on Education and Labor of the House
          of Representatives in writing of its plans to offer such
          program and shall provide information relating to the general
          terms and conditions of such program.

      The Association is further authorized to undertake any activity
      with regard to student loans which are not insured or guaranteed
      as provided for in this subsection as it may undertake with
      regard to insured or guaranteed student loans. Any warehousing
      advance made on the security of such loans shall be subject to
      the provisions of paragraph (3) of this subsection to the same
      extent as a warehousing advance made on the security of insured
      loans.
      (2) Warehousing advances
        Any warehousing advance made under paragraph (1)(A) of this
      subsection shall be made on the security of (A) insured loans,
      (B) marketable obligations and securities issued, guaranteed, or
      insured by, the United States, or for which the full faith and
      credit of the United States is pledged for the repayment of
      principal and interest thereof, or (C) marketable obligations
      issued, guaranteed, or insured by any agency, instrumentality, or
      corporation of the United States for which the credit of such
      agency, instrumentality, or corporation is pledged for the
      repayment of principal and interest thereof, in an amount equal
      to the amount of such advance. The proceeds of any such advance
      secured by insured loans shall either be invested in additional
      insured loans or the lender shall provide assurances to the
      Association that during the period of the borrowing it will
      maintain a level of insured loans in its portfolio not less than
      the aggregate outstanding balance of such loans held at the time
      of the borrowing. The proceeds from any such advance secured by
      collateral described in clauses (B) and (C) shall be invested in
      additional insured student loans.
      (3) Perfection of security interests in student loans
        Notwithstanding the provisions of any State law to the
      contrary, including the Uniform Commercial Code as in effect in
      any State, a security interest in insured student loans created
      on behalf of the Association or any eligible lender as defined in
      section 1085(a) of this title may be perfected either through the
      taking of possession of such loans or by the filing of notice of
      such security interest in such loans in the manner provided by
      such State law for perfection of security interests in accounts.
      (4) Form of securities
        Securities issued pursuant to the offering of participations or
      pooled interests under paragraph (1) of this subsection may be in
      the form of debt obligations, or trust certificates of beneficial
      ownership, or both. Student loans set aside pursuant to the
      offering of participations or pooled interests shall at all times
      be adequate to ensure the timely principal and interest payments
      on such securities.
      (5) Restrictions on facilities and housing activities
        Not less than 75 percent of the aggregate dollar amount of
      obligations bought, sold, held, insured, underwritten, and
      otherwise supported in accordance with the authority contained in
      paragraph (1)(C) shall be obligations which are listed by a
      nationally recognized statistical rating organization at a rating
      below the second highest rating of such organization.
    (e) Advances to lenders that do not discriminate
      The Association, pursuant to such criteria as the Board of
    Directors may prescribe, shall make advances on security or
    purchase student loans pursuant to subsection (d) of this section
    only after the Association is assured that the lender (1) does not
    discriminate by pattern or practice against any particular class or
    category of students by requiring that, as a condition to the
    receipt of a loan, the student or his family maintain a business
    relationship with the lender, except that this clause shall not
    apply in the case of a loan made by a credit union, savings and
    loan association, mutual savings bank, institution of higher
    education, or any other lender with less than $75,000,000 in
    deposits, and (2) does not discriminate on the basis of race, sex,
    color, creed, or national origin.
    (f) Stock of the Association
      (1) Voting common stock
        The Association shall have voting common stock having such par
      value as may be fixed by its Board of Directors from time to
      time. Each share of voting common stock shall be entitled to one
      vote with rights of cumulative voting at all elections of
      directors.
      (2) Number of shares; transferability
        The maximum number of shares of voting common stock that the
      Association may issue and have outstanding at any one time shall
      be fixed by the Board of Directors from time to time. Any voting
      common stock issued shall be fully transferable, except that, as
      to the Association, it shall be transferred only on the books of
      the Association.
      (3) Dividends
        To the extent that net income is earned and realized, subject
      to subsection (g)(2) of this section, dividends may be declared
      on voting common stock by the Board of Directors. Such dividends
      as may be declared by the Board of Directors shall be paid to the
      holders of outstanding shares of voting common stock, except that
      no such dividends shall be payable with respect to any share
      which has been called for redemption past the effective date of
      such call.
      (4) Single class of voting common stock
        As of the effective date of the Higher Education Amendments of
      1992, all of the previously authorized shares of voting common
      stock and nonvoting common stock of the Association shall be
      converted to shares of a single class of voting common stock on a
      share-for-share basis, without any further action on the part of
      the Association or any holder. Each outstanding certificate for
      voting or nonvoting common stock shall evidence ownership of the
      same number of shares of voting stock into which it is converted.
      All preexisting rights and obligations with respect to any class
      of common stock of the Association shall be deemed to be rights
      and obligations with respect to such converted shares.
    (g) Preferred stock
      (1) Authority of Board
        The Association is authorized to issue nonvoting preferred
      stock having such par value as may be fixed by its Board of
      Directors from time to time. Any preferred share issued shall be
      freely transferable, except that, as to the Association, it shall
      be transferred only on the books of the Association.
      (2) Rights of preferred stock
        The holders of the preferred shares shall be entitled to such
      rate of cumulative dividends and such shares shall be subject to
      such redemption or other conversion provisions as may be provided
      for at the time of issuance. No dividends shall be payable on any
      share of common stock at any time when any dividend is due on any
      share of preferred stock and has not been paid.
      (3) Preference on termination of business
        In the event of any liquidation, dissolution, or winding up of
      the Association's business, the holders of the preferred shares
      shall be paid in full at par value thereof, plus all accrued
      dividends, before the holders of the common shares receive any
      payment.
    (h) Debt obligations
      (1) Approval by Secretaries of Education and the Treasury
        The Association is authorized with the approval of the
      Secretary of Education and the Secretary of the Treasury to issue
      and have outstanding obligations having such maturities and
      bearing such rate or rates of interest as may be determined by
      the Association. The authority of the Secretary of Education to
      approve the issuance of such obligations is limited to
      obligations issued by the Association and guaranteed by the
      Secretary pursuant to paragraph (2) of this subsection. Such
      obligations may be redeemable at the option of the Association
      before maturity in such manner as may be stipulated therein. The
      Secretary of the Treasury may not direct as a condition of his
      approval that any such issuance of obligations by the Association
      be made or sold to the Federal Financing Bank. To the extent that
      the average outstanding amount of the obligations owned by the
      Association pursuant to the authority contained in subsection
      (d)(1)(B) and (C) of this section and as to which the income is
      exempt from taxation under title 26 does not exceed the average
      stockholders' equity of the Association, the interest on
      obligations issued under this paragraph shall not be deemed to be
      interest on indebtedness incurred or continued to purchase or
      carry obligations for the purpose of section 265 of title 26.
      (2) Guarantee of debt
        The Secretary is authorized, prior to October 1, 1984, to
      guarantee payment when due of principal and interest on
      obligations issued by the Association in an aggregate amount
      determined by the Secretary in consultation with the Secretary of
      the Treasury. Nothing in this section shall be construed so as to
      authorize the Secretary of Education or the Secretary of the
      Treasury to limit, control, or constrain programs of the
      Association or support of the Guaranteed Student Loan Program by
      the Association.
      (3) Borrowing authority to meet guarantee obligations
        To enable the Secretary to discharge his responsibilities under
      guarantees issued by him, he is authorized to issue to the
      Secretary of the Treasury notes or other obligations in such
      forms and denominations, bearing such maturities, and subject to
      such terms and conditions, as may be prescribed by the Secretary
      with the approval of the Secretary of the Treasury. Such notes or
      other obligations shall bear interest at a rate determined by the
      Secretary of the Treasury, taking into consideration the current
      average market yield on outstanding marketable obligations of the
      United States of comparable maturities during the months
      preceding the issuance of the notes or other obligations. The
      Secretary of the Treasury is authorized and directed to purchase
      any notes and other obligations issued hereunder and for that
      purpose he is authorized to use as a public debt transaction the
      proceeds from the sale of any securities issued under chapter 31
      of title 31, and the purposes for which securities may be issued
      under that chapter are extended to include any purchase of such
      notes and obligations. The Secretary of the Treasury may at any
      time sell any of the notes or other obligations acquired by him
      under this subsection. All redemptions, purchases, and sales by
      the Secretary of the Treasury of such notes or other obligations
      shall be treated as public debt transactions of the United
      States. There is authorized to be appropriated to the Secretary
      such sums as may be necessary to pay the principal and interest
      on the notes or obligations issued by him to the Secretary of the
      Treasury.
      (4) Action on request for guarantees
        Upon receipt of a request from the Association under this
      subsection requiring approvals by the Secretary of Education or
      the Secretary of the Treasury, the Secretary of Education or the
      Secretary of the Treasury shall act promptly either to grant
      approval or to advise the Association of the reasons for
      withholding approval. In no case shall such an approval be
      withheld for a period longer than 60 days unless, prior to the
      end of such period, the Secretary of Education and the Secretary
      of the Treasury submit to the Congress a detailed explanation of
      reasons for doing so.
      (5) Authority of Treasury to purchase debt
        The Secretary of the Treasury is authorized to purchase any
      obligations issued by the Association pursuant to this subsection
      as now or hereafter in force, and for such purpose the Secretary
      of the Treasury is authorized to use as a public debt transaction
      the proceeds of the sale of any securities hereafter issued under
      chapter 31 of title 31, as now or hereafter in force, and the
      purposes for which securities may be issued under chapter 31 of
      title 31, as now or hereafter in force are extended to include
      such purchases. The Secretary of the Treasury shall not at any
      time purchase any obligations under this subsection if such
      purchase would increase the aggregate principal amount of his
      then outstanding holdings of such obligations under this
      subsection to an amount greater than $1,000,000,000. Each
      purchase of obligations by the Secretary of the Treasury under
      this subsection shall be upon such terms and conditions as to
      yield a return at a rate determined by the Secretary of the
      Treasury, taking into consideration the current average rate on
      outstanding marketable obligations of the United States of
      comparable maturities as of the last day of the month preceding
      the making of such purchase. The Secretary of the Treasury may,
      at any time, sell, upon such terms and conditions and at such
      price or prices as he shall determine, any of the obligations
      acquired by him under this subsection. All redemptions,
      purchases, and sales by the Secretary of the Treasury of such
      obligations under this subsection shall be treated as public debt
      transactions of the United States.
      (6) Sale of debt to Federal Financing Bank
        Notwithstanding any other provision of law the Association is
      authorized to sell or issue obligations on the security of
      student loans, the payment of interest or principal of which has
      at any time been guaranteed under section 1078 or 1079 of this
      title, to the Federal Financing Bank.
      (7) Offset fee
        (A) The Association shall pay to the Secretary, on a monthly
      basis, an offset fee calculated on an annual basis in an amount
      equal to 0.30 percent of the principal amount of each loan made,
      insured or guaranteed under this part that the Association holds
      (except for loans made pursuant to section 1078-3 of this title,
      subsection (o) of this section, or subsection (q) of this
      section) and that was acquired on or after August 10, 1993.
        (B) If the Secretary determines that the Association has
      substantially failed to comply with subsection (q) of this
      section, subparagraph (A) shall be applied by substituting "1.0
      percent" for "0.3 percent".
        (C) The Secretary shall deposit all fees collected pursuant to
      this paragraph into the insurance fund established in section
      1081 of this title.
    (i) General corporate powers
      The Association shall have power - 
        (1) to sue and be sued, complain and defend, in its corporate
      name and through its own counsel;
        (2) to adopt, alter, and use the corporate seal, which shall be
      judicially noticed;
        (3) to adopt, amend, and repeal by its Board of Directors,
      bylaws, rules, and regulations as may be necessary for the
      conduct of its business;
        (4) to conduct its business, carry on its operations, and have
      officers and exercise the power granted by this section in any
      State without regard to any qualification or similar statute in
      any State;
        (5) to lease, purchase, or otherwise acquire, own, hold,
      improve, use, or otherwise deal in and with any property, real,
      personal, or mixed, or any interest therein, wherever situated;
        (6) to accept gifts or donations of services, or of property,
      real, personal, or mixed, tangible or intangible, in aid of any
      of the purposes of the Association;
        (7) to sell, convey, mortgage, pledge, lease, exchange, and
      otherwise dispose of its property and assets;
        (8) to appoint such officers, attorneys, employees, and agents
      as may be required, to determine their qualifications, to define
      their duties, to fix their salaries, require bonds for them, and
      fix the penalty thereof; and
        (9) to enter into contracts, to execute instruments, to incur
      liabilities, and to do all things as are necessary or incidental
      to the proper management of its affairs and the proper conduct of
      its business.
    (j) Accounting, auditing, and reporting
      The accounts of the Association shall be audited annually. Such
    audits shall be conducted in accordance with generally accepted
    auditing standards by independent certified public accountants or
    by independent licensed public accountants, licensed on or before
    December 31, 1970, who are certified or licensed by a regulatory
    authority of a State or other political subdivision of the United
    States, except that independent public accountants licensed to
    practice by such regulatory authority after December 31, 1970, and
    persons who, although not so certified or licensed, meet, in the
    opinion of the Secretary, standards of education and experience
    representative of the highest standards prescribed by the licensing
    authorities of the several States which provide for the continuing
    licensing of public accountants and which are prescribed by the
    Secretary in appropriate regulations may perform such audits until
    December 31, 1975. A report of each such audit shall be furnished
    to the Secretary of the Treasury. The audit shall be conducted at
    the place or places where the accounts are normally kept. The
    representatives of the Secretary shall have access to all books,
    accounts, financial records, reports, files, and all other papers,
    things, or property belonging to or in use by the Association and
    necessary to facilitate the audit, and they shall be afforded full
    facilities for verifying transactions with the balances or
    securities held by depositaries, fiscal agents, and custodians.
    (k) Report on audits by Treasury
      A report of each such audit for a fiscal year shall be made by
    the Secretary of the Treasury to the President and to the Congress
    not later than 6 months following the close of such fiscal year.
    The report shall set forth the scope of the audit and shall include
    a statement (showing intercorporate relations) of assets and
    liabilities, capital and surplus or deficit; a statement of surplus
    or deficit analysis; a statement of income and expense; a statement
    of sources and application of funds; and such comments and
    information as may be deemed necessary to keep the President and
    the Congress informed of the operations and financial condition of
    the Association, together with such recommendations with respect
    thereto as the Secretary may deem advisable, including a report of
    any impairment of capital or lack of sufficient capital noted in
    the audit. A copy of each report shall be furnished to the
    Secretary, and to the Association.
    (l) Lawful investment instruments; effect of and exemptions from
      other laws
      All obligations issued by the Association including those made
    under subsection (d)(4) of this section shall be lawful
    investments, and may be accepted as security for all fiduciary,
    trust, and public funds, the investment or deposit of which shall
    be under authority or control of the United States or of any
    officer or officers thereof. All stock and obligations issued by
    the Association pursuant to this section shall be deemed to be
    exempt securities within the meaning of laws administered by the
    Securities and Exchange Commission, to the same extent as
    securities which are direct obligations of, or obligations
    guaranteed as to principal or interest by, the United States. The
    Association shall, for the purposes of section 355(2) of title 12,
    be deemed to be an agency of the United States. The obligations of
    the Association shall be deemed to be obligations of the United
    States for the purpose of section 3124 of title 31. For the purpose
    of the distribution of its property pursuant to section 726 of
    title 11, the Association shall be deemed a person within the
    meaning of such title. The priority established in favor of the
    United States by section 3713 of title 31 shall not establish a
    priority over the indebtedness of the Association issued or
    incurred on or before September 30, 1992. The Federal Reserve Banks
    are authorized to act as depositaries, custodians, or fiscal
    agents, or a combination thereof, for the Association in the
    general performance of its powers under this section.
    (m) Preparation of obligations
      In order to furnish obligations for delivery by the Association,
    the Secretary of the Treasury is authorized to prepare such
    obligations in such form as the Board of Directors may approve,
    such obligations when prepared to be held in the Treasury subject
    to delivery upon order by the Association. The engraved plates,
    dies, bed pieces, and so forth, executed in connection therewith
    shall remain in the custody of the Secretary of the Treasury. The
    Association shall reimburse the Secretary of the Treasury for any
    expenditures made in the preparation, custody, and delivery of such
    obligations. The Secretary of the Treasury is authorized to
    promulgate regulations on behalf of the Association so that the
    Association may utilize the book-entry system of the Federal
    Reserve Banks.
    (n) Report on operations and activities
      The Association shall, as soon as practicable after the end of
    each fiscal year, transmit to the President and the Congress a
    report of the Association's operations and activities, including a
    report with respect to all facilities transactions, during each
    year.
    (o) Loan consolidations
      (1) In general
        The Association or its designated agent may, upon request of a
      borrower, consolidate loans received under this subchapter and
      part C of subchapter I of chapter 34 of title 42 in accordance
      with section 1078-3 of this title.
      (2) Use of existing agencies as agent
        The Association in making loans pursuant to this subsection in
      any State served by a guaranty agency or an eligible lender in a
      State described in section 1085(d)(1)(D) or (F) of this title may
      designate as its agent such agency or lender to perform such
      functions as the Association determines appropriate. Any
      agreements made pursuant to this subparagraph shall be on such
      terms and conditions as agreed upon by the Association and such
      agency or lender.
    (p) Advances for direct loans by guaranty agencies
      (1) In general
        The Association shall make advances in each fiscal year from
      amounts available to it to each guaranty agency and eligible
      lender described in subsection 1078(h)(1) of this title which has
      an agreement with the Association which sets forth that advances
      are necessary to enable such agency or lender to make student
      loans in accordance with section 1078(h) of this title and that
      such advances will be repaid to the Association in accordance
      with such terms and conditions as may be set forth in the
      agreement and agreed to by the Association and such agency or
      lender. Advances made under this subsection shall not be subject
      to subsection (d)(2) of this section.
      (2) Limitation
        No advance may be made under this subsection unless the
      guaranty agency or lender makes an application to the
      Association, which shall be accompanied by such information as
      the Association determines to be reasonably necessary.
    (q) Lender-of-last-resort
      (1) Action at request of Secretary
        (A) Whenever the Secretary determines that eligible borrowers
      are seeking and are unable to obtain loans under this part, the
      Association or its designated agent shall, not later than 90 days
      after August 10, 1993, begin making loans to such eligible
      borrowers in accordance with this subsection at the request of
      the Secretary. The Secretary may request that the Association
      make loans to borrowers within a geographic area or for the
      benefit of students attending institutions of higher education
      that certify, in accordance with standards established by the
      Secretary, that their students are seeking and unable to obtain
      loans.
        (B) Loans made pursuant to this subsection shall be insurable
      by the Secretary under section 1079 of this title with a
      certificate of comprehensive insurance coverage provided for
      under section 1079(b)(1) of this title or by a guaranty agency
      under paragraph (2)(A) of this subsection.
      (2) Issuance and coverage of loans
        (A) Whenever the Secretary, after consultation with, and with
      the agreement of, representatives of the guaranty agency in a
      State, or an eligible lender in a State described in section
      1085(d)(1)(D) of this title, determines that a substantial
      portion of eligible borrowers in such State or within an area of
      such State are seeking and are unable to obtain loans under this
      part, the Association or its designated agent shall begin making
      such loans to borrowers in such State or within an area of such
      State in accordance with this subsection at the request of the
      Secretary.
        (B) Loans made pursuant to this subsection shall be insurable
      by the agency identified in subparagraph (A) having an agreement
      pursuant to section 1078(b) of this title. For loans insured by
      such agency, the agency shall provide the Association with a
      certificate of comprehensive insurance coverage, if the
      Association and the agency have mutually agreed upon a means to
      determine that the agency has not already guaranteed a loan under
      this part to a student which would cause a subsequent loan made
      by the Association to be in violation of any provision under this
      part.
      (3) Termination of lending
        The Association or its designated agent shall cease making
      loans under this subsection at such time as the Secretary
      determines that the conditions which caused the implementation of
      this subsection have ceased to exist.
    (r) Safety and soundness of Association
      (1) Reports by the Association
        The Association shall promptly furnish to the Secretary of
      Education and Secretary of the Treasury copies of all - 
          (A) periodic financial reports publicly distributed by the
        Association;
          (B) reports concerning the Association that are received by
        the Association and prepared by nationally recognized
        statistical rating organizations; and
          (C)(i) financial statements of the Association within 45 days
        of the end of each fiscal quarter; and
          (ii) reports setting forth the calculation of the capital
        ratio of the Association within 45 days of the end of each
        fiscal quarter.
      (2) Audit by Secretary of the Treasury
        (A) The Secretary of the Treasury may - 
          (i) appoint and fix the compensation of such auditors and
        examiners as may be necessary to conduct audits of the
        Association from time to time to determine the condition of the
        Association for the purpose of assessing the Association's
        financial safety and soundness and to determine whether the
        requirements of this section and section 1087-3 of this title
        are being met; and
          (ii) obtain the services of such experts as the Secretary of
        the Treasury determines necessary and appropriate, as
        authorized by section 3109 of title 5, to assist in determining
        the condition of the Association for the purpose of assessing
        the Association's financial safety and soundness, and to
        determine whether the requirements of this section and section
        1087-3 of this title are being met.

        (B) Each auditor appointed under this paragraph shall conduct
      an audit of the Association to the extent requested by the
      Secretary of the Treasury and shall prepare and submit a report
      to the Secretary of the Treasury concerning the results of such
      audit. A copy of such report shall be furnished to the
      Association and the Secretary of Education on the date on which
      it is delivered to the Secretary of the Treasury.
        (C) The Association shall provide full and prompt access to the
      Secretary of the Treasury to its books and records and other
      information requested by the Secretary of the Treasury.
        (D) Annual assessment. - 
          (i) In general. - For each fiscal year beginning on or after
        October 1, 1996, the Secretary of the Treasury may establish
        and collect from the Association an assessment (or assessments)
        in amounts sufficient to provide for reasonable costs and
        expenses of carrying out the duties of the Secretary of the
        Treasury under this section and section 1087-3 of this title
        during such fiscal year. In no event may the total amount so
        assessed exceed, for any fiscal year, $800,000, adjusted for
        each fiscal year ending after September 30, 1997, by the ratio
        of the Consumer Price Index for All Urban Consumers (issued by
        the Bureau of Labor Statistics) for the final month of the
        fiscal year preceding the fiscal year for which the assessment
        is made to the Consumer Price Index for All Urban Consumers for
        September 1997.
          (ii) Deposit. - Amounts collected from assessments under this
        subparagraph shall be deposited in an account within the
        Treasury of the United States as designated by the Secretary of
        the Treasury for that purpose. The Secretary of the Treasury is
        authorized and directed to pay out of any funds available in
        such account the reasonable costs and expenses of carrying out
        the duties of the Secretary of the Treasury under this section
        and section 1087-3 of this title. None of the funds deposited
        into such account shall be available for any purpose other than
        making payments for such costs and expenses.

        (E) Obligation to obtain, maintain, and report information. - 
          (i) In general. - The Association shall obtain such
        information and make and keep such records as the Secretary of
        the Treasury may from time to time prescribe concerning - 
            (I) the financial risk to the Association resulting from
          the activities of any associated person, to the extent such
          activities are reasonably likely to have a material impact on
          the financial condition of the Association, including the
          Association's capital ratio, the Association's liquidity, or
          the Association's ability to conduct and finance the
          Association's operations; and
            (II) the Association's policies, procedures, and systems
          for monitoring and controlling any such financial risk.

          (ii) Summary reports. - The Secretary of the Treasury may
        require summary reports of such information to be filed no more
        frequently than quarterly. If, as a result of adverse market
        conditions or based on reports provided pursuant to this
        subparagraph or other available information, the Secretary of
        the Treasury has concerns regarding the financial or
        operational condition of the Association, the Secretary of the
        Treasury may, notwithstanding the preceding sentence and clause
        (i), require the Association to make reports concerning the
        activities of any associated person, whose business activities
        are reasonably likely to have a material impact on the
        financial or operational condition of the Association.
          (iii) Definition. - For purposes of this subparagraph, the
        term "associated person" means any person, other than a natural
        person, directly or indirectly controlling, controlled by, or
        under common control with the Association.

        (F) Compensation of auditors and examiners. - 
          (i) Rates of pay. - Rates of basic pay for all auditors and
        examiners appointed pursuant to subparagraph (A) may be set and
        adjusted by the Secretary of the Treasury without regard to the
        provisions of chapter 51 or subchapter III of chapter 53 of
        title 5.
          (ii) Comparability. - 
            (I) In general. - Subject to section 5373 of title 5, the
          Secretary of the Treasury may provide additional compensation
          and benefits to auditors and examiners appointed pursuant to
          subparagraph (A) if the same type of compensation or benefits
          are then being provided by any agency referred to in section
          1833b of title 12 or, if not then being provided, could be
          provided by such an agency under applicable provisions of
          law, rule, or regulation.
            (II) Consultation. - In setting and adjusting the total
          amount of compensation and benefits for auditors and
          examiners appointed pursuant to subparagraph (A), the
          Secretary of the Treasury shall consult with, and seek to
          maintain comparability with, the agencies referred to in
          section 1833b of title 12.
      (3) Monitoring of safety and soundness
        The Secretary of the Treasury shall conduct such studies as may
      be necessary to monitor the financial safety and soundness of the
      Association. In the event that the Secretary of the Treasury
      determines that the financial safety and soundness of the
      Association is at risk, the Secretary of the Treasury shall
      inform the Chairman and ranking minority member of the Committee
      on Labor and Human Resources of the Senate, the Chairman and
      ranking minority member of the Committee on Education and Labor
      of the House of Representatives, and the Secretary of Education
      of such determination and identify any corrective actions that
      should be taken to ensure the safety and soundness of the
      Association.
      (4) Capital standard
        If the capital ratio is less than 2 percent and is greater than
      or equal to 1.75 percent at the end of the Association's most
      recent calendar quarter the Association shall, within 60 days of
      such occurrence, submit to the Secretary of the Treasury a
      capital restoration plan, in reasonable detail, that the
      Association believes is adequate to cause the capital ratio to
      equal or exceed 2 percent within 36 months.
      (5) Capital restoration plan
        (A) Submission, approval, and implementation
          The Secretary of the Treasury and the Association shall
        consult with respect to any capital restoration plan submitted
        pursuant to paragraph (4) and the Secretary of the Treasury
        shall approve such plan (or a modification thereof accepted by
        the Association) or disapprove such plan within 30 days after
        such plan is first submitted to the Secretary of the Treasury
        by the Association, unless the Association and Secretary of the
        Treasury mutually agree to a longer consideration period. If
        the Secretary of the Treasury approves a capital restoration
        plan (including a modification of a plan accepted by the
        Association), the Association shall forthwith proceed with
        diligence to implement such plan to the best of its ability.
        (B) Disapproval
          If the Secretary of the Treasury does not approve a capital
        restoration plan as provided in subparagraph (A), then not
        later than the earlier of the date the Secretary of the
        Treasury disapproves of such plan by written notice to the
        Association or the expiration of the 30-day consideration
        period referred to in subparagraph (A) (as such period may have
        been extended by mutual agreement), the Secretary of the
        Treasury shall submit the Association's capital restoration
        plan, in the form most recently proposed to the Secretary of
        the Treasury by the Association, together with a report on the
        Secretary of the Treasury's reasons for disapproval of such
        plan and an alternative capital restoration plan, to the
        Chairman and ranking minority member of the Senate Committee on
        Labor and Human Resources and to the Chairman and ranking
        minority member of the House Committee on Education and Labor.
        A copy of such submission simultaneously shall be sent to the
        Association and the Secretary of Education by the Secretary of
        the Treasury.
        (C) Association implementation and response
          Upon receipt of the submission by the Association, the
        Association shall forthwith proceed with diligence to implement
        the most recently proposed capital restoration plan of the
        Association. The Association, within 30 days after receipt from
        the Secretary of the Treasury of such submission, shall submit
        to such Chairmen and ranking minority members a written
        response to such submission, setting out fully the nature and
        extent of the Association's agreement or the disagreement with
        the Secretary of the Treasury with respect to the capital
        restoration plan submitted to the Secretary of the Treasury and
        any findings of the Secretary of the Treasury.
      (6) Substantial capital ratio reduction
        (A) Additional plan required
          If the capital ratio is less than 1.75 percent and is greater
        than or equal to 1 percent at the end of the Association's most
        recent calendar quarter, the Association shall submit to the
        Secretary of the Treasury within 60 days after such occurrence
        a capital restoration plan (or an appropriate modification of
        any plan previously submitted or approved under paragraph (4))
        to increase promptly its capital ratio to equal or exceed 1.75
        percent. The Secretary of the Treasury and the Association
        shall consult with respect to any plan or modified plan
        submitted pursuant to this paragraph. The Secretary of the
        Treasury shall approve such plan or modified plan (or a
        modification thereof accepted by the Association) or disapprove
        such plan or modified plan within 30 days after such plan or
        modified plan is first submitted to the Secretary of the
        Treasury by the Association, unless the Association and
        Secretary of the Treasury mutually agree to a longer
        consideration period. If the Secretary of the Treasury approves
        a plan or modified plan (including a modification of a plan
        accepted by the Association), the Association shall forthwith
        proceed with diligence to implement such plan or modified plan
        to the best of the Association's ability.
        (B) Disapproval
          If the Secretary of the Treasury disapproves a capital
        restoration plan or modified plan submitted pursuant to
        subparagraph (A), then, not later than the earlier of the date
        the Secretary of the Treasury disapproves of such plan or
        modified plan (by written notice to the Association) or the
        expiration of the 30-day consideration period described in
        subparagraph (A) (as such period may have been extended by
        mutual agreement), the Secretary of the Treasury shall prepare
        and submit an alternative capital restoration plan, together
        with a report on his reasons for disapproval of the
        Association's plan or modified plan, to the Chairman and
        ranking minority member of the Committee on Labor and Human
        Resources of the Senate and to the Chairman and ranking
        minority member of the Committee on Education and Labor of the
        House of Representatives. A copy of such submission
        simultaneously shall be sent to the Association and the
        Secretary of Education by the Secretary of the Treasury. The
        Association, within 5 days after receipt from the Secretary of
        the Treasury of such submission, shall submit to the Chairmen
        and ranking minority members of such Committees, and the
        Secretary of the Treasury, a written response to such
        submission, setting out fully the nature and extent of the
        Association's agreement or disagreement with the Secretary of
        the Treasury with respect to the disapproved plan and the
        alternative plan of the Secretary of the Treasury and any
        findings of the Secretary of the Treasury.
        (C) Review by Congress; Association implementation
          Congress shall have 60 legislative days after the date on
        which Congress receives the alternative plan under subparagraph
        (B) from the Secretary of the Treasury to review such plan. If
        Congress does not take statutory action with respect to any
        such plan within such 60-day period, the Association shall
        immediately proceed with diligence to implement the alternative
        capital restoration plan of the Secretary of the Treasury under
        subparagraph (B). If Congress is out of session when any such
        alternative plan is received, such 60-day period shall begin on
        the first day of the next session of Congress.
      (7) Actions by Secretary of the Treasury
        If the capital ratio of the Association does not equal or
      exceed 1.75 percent at the end of the Association's most recent
      calendar quarter, the Secretary of the Treasury may, until the
      capital ratio equals or exceeds 1.75 percent, take any one or
      more of the following actions:
        (A) Limit increase in liabilities
          Limit any increase in, or order the reduction of, any
        liabilities of the Association, except as necessary to fund
        student loan purchases and warehousing advances.
        (B) Restrict growth
          Restrict or eliminate growth of the Association's assets,
        other than student loans purchases and warehousing advances.
        (C) Restrict distributions
          Restrict the Association from making any capital
        distribution.
        (D) Require issuance of new capital
          Require the Association to issue new capital in any form and
        in any amount sufficient to restore at least a 1.75 percent
        capital ratio.
        (E) Limit executive compensation
          Prohibit the Association from increasing for any executive
        officer any compensation including bonuses at a rate exceeding
        that officer's average rate of compensation during the previous
        12 calendar months and prohibiting the Board from adopting any
        new employment severance contracts.
      (8) Critical capital standard
        (A) If the capital ratio is less than 1 percent at the end of
      the Association's most recent calendar quarter and the
      Association has already submitted a capital restoration plan to
      the Secretary of the Treasury pursuant to paragraph (4) or
      (6)(A), the Association shall forthwith proceed with diligence to
      implement the most recently proposed plan with such modifications
      as the Secretary of the Treasury determines are necessary to
      cause the capital ratio to equal or exceed 2 percent within 60
      months.
        (B) If the capital ratio is less than 1 percent at the end of
      the Association's most recent calendar quarter and the
      Association has not submitted a capital restoration plan to the
      Secretary of the Treasury pursuant to paragraph (4) or (6)(A),
      the Association shall - 
          (i) within 14 days of such occurrence submit a capital
        restoration plan to the Secretary of the Treasury which the
        Association believes is adequate to cause the capital ratio to
        equal or exceed 2 percent within 60 months; and
          (ii) forthwith proceed with diligence to implement such plan
        with such modifications as the Secretary of the Treasury
        determines are necessary to cause the capital ratio to equal or
        exceed 2 percent within 60 months.

        (C) Immediately upon a determination under subparagraph (A) or
      (B) to implement a capital restoration plan, the Secretary of the
      Treasury shall submit the capital restoration plan to be
      implemented to the Chairman and ranking minority member of the
      Committee on Labor and Human Resources of the Senate, the
      Chairman and ranking minority member of the Committee on
      Education and Labor of the House of Representatives, and the
      Secretary of Education.
      (9) Additional reports to committees
        The Association shall submit a copy of its capital restoration
      plan, modifications proposed to the Secretary of the Treasury,
      and proposed modifications received from the Secretary of the
      Treasury to the Congressional Budget Office and Government
      Accountability Office upon their submission to the Secretary of
      the Treasury or receipt from the Secretary of the Treasury.
      Notwithstanding any other provision of law, the Congressional
      Budget Office and Government Accountability Office shall maintain
      the confidentiality of information received pursuant to the
      previous sentence. In the event that the Secretary of the
      Treasury does not approve a capital restoration plan as provided
      in paragraph (5)(A) or (6)(A), or in the event that a capital
      restoration plan is modified by the Secretary of the Treasury
      pursuant to paragraph (6)(B) or (8), the Congressional Budget
      Office and Government Accountability Office shall each submit a
      report within 30 days of the Secretary of the Treasury's
      submission to the Chairmen and ranking minority members as
      required in paragraphs (5)(B), (6)(B), and (8)(C) to such
      Chairmen and ranking members - 
          (A) analyzing the financial condition of the Association;
          (B) analyzing the capital restoration plan and reasons for
        disapproval of the plan contained in the Secretary of the
        Treasury's submission made pursuant to paragraph (5)(B), or the
        capital restoration plan proposed by the Association and the
        modifications made by the Secretary of the Treasury pursuant to
        paragraph (6)(B) or (8);
          (C) analyzing the impact of the capital restoration plan and
        reasons for disapproval of the plan contained in the Secretary
        of the Treasury's submission made pursuant to paragraph (5)(B),
        or the impact of the capital restoration plan proposed by the
        Association and the modifications made by the Secretary of the
        Treasury pursuant to paragraph (6)(B) or (8), and analyzing the
        impact of the recommendations made pursuant to subparagraph (D)
        of this paragraph, on - 
            (i) the ability of the Association to fulfill its purpose
          and authorized activities as provided in this section, and
            (ii) the operation of the student loan programs; and

          (D) recommending steps which the Association should take to
        increase its capital ratio without impairing its ability to
        perform its purpose and authorized activities as provided in
        this section.
      (10) Review by Secretary of Education
        The Secretary of Education shall review the Secretary of the
      Treasury's submission required pursuant to paragraph (5)(B),
      (6)(B), or (8) and shall submit a report within 30 days to the
      Chairman and ranking minority member of the Senate Committee on
      Labor and Human Resources and to the Chairman and ranking
      minority member of the House Committee on Education and Labor - 
          (A) describing any administrative or legislative provisions
        governing the student loan programs which contributed to the
        decline in the Association's capital ratio; and
          (B) recommending administrative and legislative changes in
        the student loan programs to maintain the orderly operation of
        such programs and to enable the Association to fulfill its
        purpose and authorized activities consistent with the capital
        ratio specified in paragraph (4).
      (11) Safe harbor
        The Association shall be deemed in compliance with the capital
      ratios described in paragraphs (4) and (6)(A) if the Association
      is rated in 1 of the 2 highest full rating categories (such
      categories to be determined without regard to designations within
      categories) by 2 nationally recognized statistical rating
      organizations, determined without regard to the Association's
      status as a federally chartered corporation.
      (12) Treatment of confidential information
        Notwithstanding any other provision of law, the Secretary of
      the Treasury, the Secretary of Education, the Congressional
      Budget Office, and the Government Accountability Office shall not
      disclose any information treated as confidential by the
      Association or the Association's associated persons and obtained
      pursuant to this subsection. Nothing in this paragraph shall
      authorize the Secretary of the Treasury, the Secretary of
      Education, the Congressional Budget Office, and the Government
      Accountability Office to withhold information from Congress, or
      prevent the Secretary of Education, the Congressional Budget
      Office, and the Government Accountability Office from complying
      with a request for information from any other Federal department
      or agency requesting the information for purposes within the
      scope of its jurisdiction, or complying with an order of a court
      of the United States in an action brought by the United States.
      For purposes of section 552 of title 5, this paragraph shall be
      considered a statute described in subsection (b)(3) of such
      section 552.
      (13) Enforcement of safety and soundness requirements
        The Secretary of Education or the Secretary of the Treasury, as
      appropriate, may request that the Attorney General bring an
      action in the United States District Court for the District of
      Columbia for the enforcement of any provision of this section, or
      may, under the direction or control of the Attorney General,
      bring such an action. Such court shall have jurisdiction and
      power to order and require compliance with this section.
      (14) Actions by Secretary
        (A) In general
          For any fiscal quarter ending after January 1, 2000, the
        Association shall have a capital ratio of at least 2.25
        percent. The Secretary of the Treasury may, whenever such
        capital ratio is not met, take any one or more of the actions
        described in paragraph (7), except that - 
            (i) the capital ratio to be restored pursuant to paragraph
          (7)(D) shall be 2.25 percent; and
            (ii) if the relevant capital ratio is in excess of or equal
          to 2 percent for such quarter, the Secretary of the Treasury
          shall defer taking any of the actions set forth in paragraph
          (7) until the next succeeding quarter and may then proceed
          with any such action only if the capital ratio of the
          Association remains below 2.25 percent.
        (B) Applicability
          The provisions of paragraphs (4), (5), (6), (8), (9), (10),
        and (11) shall be of no further application to the Association
        for any period after January 1, 2000.
      (15) Definitions
        As used in this subsection:
          (A) The term "nationally recognized statistical rating
        organization" means any nationally recognized statistical
        rating organization, as that term is defined in section 78c(a)
        of title 15.
          (B) The term "capital ratio" means the ratio of total
        stockholders' equity, as shown on the Association's most recent
        quarterly consolidated balance sheet prepared in the ordinary
        course of its business, to the sum of - 
            (i) the total assets of the Association, as shown on the
          balance sheet prepared in the ordinary course of its
          business; and
            (ii) 50 percent of the credit equivalent amount of the
          following off-balance sheet items of the Association as of
          the date of such balance sheet - 
              (I) all financial standby letters of credit and other
            irrevocable guarantees of the repayment of financial
            obligations of others; and
              (II) all interest rate contracts and exchange rate
            contracts, including interest exchange agreements, floor,
            cap, and collar agreements and similar arrangements.

        For purposes of this subparagraph, the calculation of the
        credit equivalent amount of the items set forth in clause (ii)
        of this subparagraph, the netting of such items and
        eliminations for the purpose of avoidance of double-counting of
        such items shall be made in accordance with the measures for
        computing credit conversion factors for off-balance sheet items
        for capital maintenance purposes established for commercial
        banks from time to time by the Federal Reserve Board, but
        without regard to any risk weighting provisions in such
        measures.
          (C) The term "legislative days" means only days on which
        either House of Congress is in session.
      (16) Dividends
        The Association may pay dividends in the form of cash or
      noncash distributions so long as at the time of the declaration
      of such dividends, after giving effect to the payment of such
      dividends as of the date of such declaration by the Board of
      Directors of the Association, the Association's capital would be
      in compliance with the capital standards set forth in this
      section.
      (17) Certification prior to payment of dividend
        Prior to the payment of any dividend under paragraph (16), the
      Association shall certify to the Secretary of the Treasury that
      the payment of the dividend will be made in compliance with
      paragraph (16) and shall provide copies of all calculations
      needed to make such certification.
    (s) Charter sunset
      (1) Application of provisions
        This subsection applies beginning 18 months and one day after
      September 30, 1996, if no reorganization of the Association
      occurs in accordance with the provisions of section 1087-3 of
      this title.
      (2) Sunset plan
        (A) Plan submission by the Association
          Not later than July 1, 2007, the Association shall submit to
        the Secretary of the Treasury and to the Chairman and Ranking
        Member of the Committee on Labor and Human Resources of the
        Senate and the Chairman and Ranking Member of the Committee on
        Economic and Educational Opportunities of the House of
        Representatives, a detailed plan for the orderly winding up, by
        July 1, 2013, of business activities conducted pursuant to the
        charter set forth in this section. Such plan shall - 
            (i) ensure that the Association will have adequate assets
          to transfer to a trust, as provided in this subsection, to
          ensure full payment of remaining obligations of the
          Association in accordance with the terms of such obligations;
            (ii) provide that all assets not used to pay liabilities
          shall be distributed to shareholders as provided in this
          subsection; and
            (iii) provide that the operations of the Association shall
          remain separate and distinct from that of any entity to which
          the assets of the Association are transferred.
        (B) Amendment of the plan by the Association
          The Association shall from time to time amend such plan to
        reflect changed circumstances, and submit such amendments to
        the Secretary of the Treasury and to the Chairman and Ranking
        Minority Member of the Committee on Labor and Human Resources
        of the Senate and Chairman and Ranking Minority Member of the
        Committee on Economic and Educational Opportunities of the
        House of Representatives. In no case may any amendment extend
        the date for full implementation of the plan beyond the
        dissolution date provided in paragraph (3).
        (C) Plan monitoring
          The Secretary of the Treasury shall monitor the Association's
        compliance with the plan and shall continue to review the plan
        (including any amendments thereto).
        (D) Amendment of the plan by the Secretary of the Treasury
          The Secretary of the Treasury may require the Association to
        amend the plan (including any amendments to the plan), if the
        Secretary of the Treasury deems such amendments necessary to
        ensure full payment of all obligations of the Association.
        (E) Implementation by the Association
          The Association shall promptly implement the plan (including
        any amendments to the plan, whether such amendments are made by
        the Association or are required to be made by the Secretary of
        the Treasury).
      (3) Dissolution of the Association
        The Association shall dissolve and the Association's separate
      existence shall terminate on July 1, 2013, after discharge of all
      outstanding debt obligations and liquidation pursuant to this
      subsection. The Association may dissolve pursuant to this
      subsection prior to such date by notifying the Secretary of
      Education and the Secretary of the Treasury of the Association's
      intention to dissolve, unless within 60 days of receipt of such
      notice the Secretary of Education notifies the Association that
      the Association continues to be needed to serve as a lender of
      last resort pursuant to subsection (q) of this section or
      continues to be needed to purchase loans under an agreement with
      the Secretary described in paragraph (4)(A). On the dissolution
      date, the Association shall take the following actions:
        (A) Establishment of a trust
          The Association shall, under the terms of an irrevocable
        trust agreement in form and substance satisfactory to the
        Secretary of the Treasury, the Association, and the appointed
        trustee, irrevocably transfer all remaining obligations of the
        Association to a trust and irrevocably deposit or cause to be
        deposited into such trust, to be held as trust funds solely for
        the benefit of holders of the remaining obligations, money or
        direct noncallable obligations of the United States or any
        agency thereof for which payment the full faith and credit of
        the United States is pledged, maturing as to principal and
        interest in such amounts and at such times as are determined by
        the Secretary of the Treasury to be sufficient, without
        consideration of any significant reinvestment of such interest,
        to pay the principal of, and interest on, the remaining
        obligations in accordance with their terms.
        (B) Use of trust assets
          All money, obligations, or financial assets deposited into
        the trust pursuant to this subsection shall be applied by the
        trustee to the payment of the remaining obligations assumed by
        the trust. Upon the fulfillment of the trustee's duties under
        the trust, any remaining assets of the trust shall be
        transferred to the persons who, at the time of the dissolution,
        were the shareholders of the Association, or to the legal
        successors or assigns of such persons.
        (C) Obligations not transferred to the trust
          The Association shall make proper provision for all other
        obligations of the Association, including the repurchase or
        redemption, or the making of proper provision for the
        repurchase or redemption, of any preferred stock of the
        Association outstanding.
        (D) Transfer of remaining assets
          After compliance with subparagraphs (A) and (C), the
        Association shall transfer to the shareholders of the
        Association any remaining assets of the Association.
      (4) Restrictions relating to winding up
        (A) Restrictions on new business activity or acquisition of
          assets by the Association
          (i) In general
            Beginning on July 1, 2009, the Association shall not engage
          in any new business activities or acquire any additional
          program assets (including acquiring assets pursuant to
          contractual commitments) described in subsection (d) of this
          section other than in connection with the Association - 
              (I) serving as a lender of last resort pursuant to
            subsection (q) of this section; and
              (II) purchasing loans insured under this part, if the
            Secretary, with the approval of the Secretary of the
            Treasury, enters into an agreement with the Association for
            the continuation or resumption of the Association's
            secondary market purchase program because the Secretary
            determines there is inadequate liquidity for loans made
            under this part.
          (ii) Agreement
            The Secretary is authorized to enter into an agreement
          described in subclause (II) of clause (i) with the
          Association covering such secondary market activities. Any
          agreement entered into under such subclause shall cover a
          period of 12 months, but may be renewed if the Secretary
          determines that liquidity remains inadequate. The fee
          provided under subsection (h)(7) of this section shall not
          apply to loans acquired under any such agreement with the
          Secretary.
        (B) Issuance of debt obligations during the wind up period;
          attributes of debt obligations
          The Association shall not issue debt obligations which mature
        later than July 1, 2013, except in connection with serving as a
        lender of last resort pursuant to subsection (q) of this
        section or with purchasing loans under an agreement with the
        Secretary as described in subparagraph (A). Nothing in this
        subsection shall modify the attributes accorded the debt
        obligations of the Association by this section, regardless of
        whether such debt obligations are transferred to a trust in
        accordance with paragraph (3).
        (C) Use of Association name
          The Association may not transfer or permit the use of the
        name "Student Loan Marketing Association", "Sallie Mae", or any
        variation thereof, to or by any entity other than a subsidiary
        of the Association.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 439, as added Pub. L. 99-498, title
    IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1418; amended Pub. L. 100-
    50, Sec. 10(dd), June 3, 1987, 101 Stat. 347; Pub. L. 100-369,
    Sec. 7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102-325, title IV,
    Sec. 431, July 23, 1992, 106 Stat. 554; Pub. L. 103-66, title IV,
    Secs. 4041(c), 4104, Aug. 10, 1993, 107 Stat. 356, 367; Pub. L. 103-
    208, Sec. 2(c)(69), Dec. 20, 1993, 107 Stat. 2470; Pub. L. 103-
    382, title III, Sec. 358, Oct. 20, 1994, 108 Stat. 3968; Pub. L.
    104-208, div. A, title I, Sec. 101(e) [title VI, Sec. 602(b)(2)-
    (4), (c)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-284 to 3009-
    286; Pub. L. 106-554, Sec. 1(a)(1) [title III, Sec. 309], Dec. 21,
    2000, 114 Stat. 2763, 2763A-45; Pub. L. 108-271, Sec. 8(b), July 7,
    2004, 118 Stat. 814; Pub. L. 109-291, Sec. 4(b)(5), Sept. 29, 2006,
    120 Stat. 1338.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 104-208, div. A, title I, Sec. 101(e) [title VI, Sec.
    602(d)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-289, provided
    that this section is repealed effective one year after date on
    which all obligations of trust established under section 1087-
    3(d)(1) of this title have been extinguished, if reorganization
    occurs in accordance with section 1087-3 of this title; or date on
    which all obligations of trust established under subsec. (s)(3)(A)
    of this section have been extinguished, if reorganization does not
    occur in accordance with section 1087-3 of this title.

-REFTEXT-
                            REFERENCES IN TEXT                        
      For the effective date of the Higher Education Amendments of
    1992, referred to in subsec. (f)(4), see section 2 of Pub. L. 102-
    325, set out as an Effective Date of 1992 Amendment note under
    section 1001 of this title.

-COD-
                               CODIFICATION                           
      In subsec. (h)(3) and (5), "chapter 31 of title 31" substituted
    for "the Second Liberty Bond Act, as amended" and "the Second
    Liberty Bond Act", and "that chapter" substituted for "that Act, as
    amended", on authority of Pub. L. 97-258, Sec. 4(b), Sept. 13,
    1982, 96 Stat. 1067, the first section of which enacted Title 31,
    Money and Finance.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087-2, Pub. L. 89-329, title IV, Sec. 439, as
    added Pub. L. 92-318, title I, Sec. 133(a), June 23, 1972, 86 Stat.
    265; amended Pub. L. 94-273, Sec. 3(9), Apr. 21, 1976, 90 Stat.
    376; Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 1976, 90 Stat.
    2136; Pub. L. 95-43, Sec. 1(a)(38), June 15, 1977, 91 Stat. 217;
    Pub. L. 96-374, title IV, Sec. 421(a)-(e)(1), title XIII, Sec.
    1391(a)(1), (3), Oct. 3, 1980, 94 Stat. 1427-1430, 1503; Pub. L. 97-
    35, title V, Sec. 538, Aug. 13, 1981, 95 Stat. 457; Pub. L. 97-
    115, Sec. 18, Dec. 29, 1981, 95 Stat. 1610; Pub. L. 97-301, Sec.
    14, Oct. 13, 1982, 96 Stat. 1405; Pub. L. 98-79, Secs. 2, 8, Aug.
    15, 1983, 97 Stat. 476, 483; Pub. L. 99-272, title XVI, Secs.
    16017(b)(4), 16018(a)(3), Apr. 7, 1986, 100 Stat. 347, 348,
    established the Student Loan Marketing Association, prior to the
    general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      2006 - Subsec. (r)(15)(A). Pub. L. 109-291 substituted "means any
    nationally recognized statistical rating organization, as that term
    is defined in section 78c(a) of title 15" for "means any entity
    recognized as such by the Securities and Exchange Commission".
      2004 - Subsec. (r)(9), (12). Pub. L. 108-271 substituted
    "Government Accountability Office" for "General Accounting Office"
    wherever appearing.
      2000 - Subsec. (r)(2)(A)(i). Pub. L. 106-554, Sec. 1(a)(1) [title
    III, Sec. 309(1)], which directed amendment of this section by
    substituting "and fix the compensation of such auditors and
    examiners as may be necessary" for "auditors and examiners", was
    executed by making the substitution for "auditors or examiners", to
    reflect the probable intent of Congress.
      Subsec. (r)(2)(F). Pub. L. 106-554, Sec. 1(a)(1) [title III, Sec.
    309(2)], added subpar. (F).
      1996 - Subsec. (r)(1)(C). Pub. L. 104-208, Sec. 101(e) [title VI,
    Sec. 602(b)(3)(A)], added subpar. (C).
      Subsec. (r)(2)(A)(i), (ii). Pub. L. 104-208, Sec. 101(e) [title
    VI, Sec. 602(b)(3)(B)(i)], added cls. (i) and (ii) and struck out
    former cls. (i) and (ii) which read as follows:
      "(i) appoint auditors to conduct audits of the Association from
    time to time to determine the condition of the Association for the
    purpose of assessing its financial safety and soundness; and
      "(ii) enter into contracts to obtain the services of such
    technical experts as the Secretary of the Treasury determines
    necessary and appropriate to provide technical assistance to any
    auditor appointed under this paragraph."
      Subsec. (r)(2)(D). Pub. L. 104-208, Sec. 101(e) [title VI, Sec.
    602(b)(3)(B)(ii)], added subpar. (D).
      Subsec. (r)(2)(E). Pub. L. 104-208, Sec. 101(e) [title VI, Sec.
    602(b)(4)(A)], added subpar. (E).
      Subsec. (r)(12). Pub. L. 104-208, Sec. 101(e) [title VI, Sec.
    602(b)(2)(A)], inserted "or the Association's associated persons"
    after "by the Association" in first sentence.
      Subsec. (r)(13). Pub. L. 104-208, Sec. 101(e) [title VI, Sec.
    602(b)(2)(B), (C)], added par. (13) and redesignated former par.
    (13) as (15).
      Subsec. (r)(14). Pub. L. 104-208, Sec. 101(e) [title VI, Sec.
    602(b)(3)(C)], added par. (14).
      Subsec. (r)(15). Pub. L. 104-208, Sec. 101(e) [title VI, Sec.
    602(b)(2)(B)], redesignated par. (13) as (15).
      Subsec. (r)(16), (17). Pub. L. 104-208, Sec. 101(e), [title VI,
    Sec. 602(b)(4)(B)], added pars. (16) and (17).
      Subsec. (s). Pub. L. 104-208, Sec. 101(e) [title VI, Sec.
    602(c)], added subsec. (s).
      1994 - Subsec. (d)(1)(C). Pub. L. 103-382, Sec. 358(1)(A), (D),
    inserted "(including related equipment, instrumentation, and
    furnishings)" after "materials" in introductory provisions and
    substituted "30 percent" for "15 percent" and "types" for "type" in
    concluding provisions.
      Subsec. (d)(1)(C)(ii). Pub. L. 103-382, Sec. 358(1)(B),
    substituted ", dining halls, student unions, and facilities
    specifically designed to promote fitness and health for students,
    faculty, and staff or for physical education courses; and" for the
    semicolon.
      Subsec. (d)(1)(C)(iii), (iv). Pub. L. 103-382, Sec. 358(1)(C),
    (E), struck out "and" after the semicolon in cl. (iii) and struck
    out cl. (iv) which read as follows: "related equipment,
    instrumentation, and furnishings for facilities and materials
    described in clause (i) or (iii);".
      Subsec. (n). Pub. L. 103-382, Sec. 358(2), substituted "a report
    of the Association's operations and activities, including a report
    with respect to all facilities transactions, during each year" for
    "a report of its operations and activities during each year".
      1993 - Subsec. (h)(7). Pub. L. 103-66, Sec. 4104, added par. (7).
      Subsec. (q). Pub. L. 103-66, Sec. 4041(c), amended subsec. (q)
    generally, substituting present provisions for substantially
    similar former provisions.
      Subsec. (r)(12). Pub. L. 103-208 substituted "section 552" for
    "section 522".
      1992 - Subsec. (c). Pub. L. 102-325, Sec. 431(a), amended subsec.
    (c) generally, substituting present provisions consisting of pars.
    (1) to (4) for former provisions which provided for: in par. (1),
    Board membership; in par. (2), interim Board; in par. (3), regular
    Board; in par. (4), succession of regular Board; in par. (5), terms
    of appointed and elected members; and in par. (6), meetings and
    functions of Board.
      Subsec. (d)(1)(C). Pub. L. 102-325, Sec. 431(b), amended subpar.
    (C) generally. Prior to amendment, subpar. (C) read as follows: "to
    buy, sell, hold, insure, underwrite, and otherwise deal in
    obligations issued for the purpose of financing or refinancing the
    construction, reconstruction, renovation, or purchase of
    educational and training facilities and housing for students and
    faculties (including the underlying real property), and related
    equipment, instrumentation, and furnishings;".
      Subsec. (d)(5). Pub. L. 102-325, Sec. 431(c), substituted "second
    highest rating" for "third highest rating".
      Subsec. (f). Pub. L. 102-325, Sec. 431(d), amended subsec. (f)
    generally, substituting present provisions consisting of pars. (1)
    to (4) for former provisions which provided for: in par. (1),
    common stock to insured lenders and eligible institutions only; in
    par. (2), voting rights; in par. (3), number of shares and
    transferability; in par. (4), dividends; and in par. (5), nonvoting
    common stock.
      Subsec. (r). Pub. L. 102-325, Sec. 431(e), added subsec. (r).
      1988 - Subsec. (h)(1). Pub. L. 100-369 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954" in two
    places, which for purposes of codification was translated as "title
    26" thus requiring no change in text.
      1987 - Subsec. (d)(1)(E)(iii). Pub. L. 100-50 inserted "Labor
    and" before "Human Resources".

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.
      Committee on Education and Labor of House of Representatives
    treated as referring to Committee on Economic and Educational
    Opportunities of House of Representatives by section 1(a) of Pub.
    L. 104-14, set out as a note preceding section 21 of Title 2, The
    Congress. Committee on Economic and Educational Opportunities of
    House of Representatives changed to Committee on Education and the
    Workforce of House of Representatives by House Resolution No. 5,
    One Hundred Fifth Congress, Jan. 7, 1997.


-MISC2-
                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 101(e) [title VI, Sec. 602(d)(2)] of div. A of Pub. L.
    104-208 provided that: "The repeals made by paragraph (1)
    [repealing this section and section 1087-3 of this title] shall be
    effective one year after - 
        "(A) the date on which all of the obligations of the trust
      established under section 440(d)(1) of the Higher Education Act
      of 1965 [20 U.S.C. 1087-3(d)(1)] (as added by subsection (a))
      have been extinguished, if a reorganization occurs in accordance
      with section 440 of such Act; or
        "(B) the date on which all of the obligations of the trust
      established under subsection [sic] 439(s)(3)(A) of such Act [20
      U.S.C. 1087-2(s)(3)(A)] (as added by subsection (c)) have been
      extinguished, if a reorganization does not occur in accordance
      with section 440 of such Act."

                     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 July 23, 1992, except that
    changes in subsec. (d)(1), relating to facilities loans, applicable
    with respect to applications received on or after July 1, 1992, see
    section 432 of Pub. L. 102-325, set out as a note under section
    1078 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.

                   TERMINATION OF REPORTING REQUIREMENTS               
      For termination, effective May 15, 2000, of provisions in
    subsecs. (k) and (n) of this section relating to transmitting
    annual reports to Congress, see section 3003 of Pub. L. 104-66, as
    amended, set out as a note under section 1113 of Title 31, Money
    and Finance, and pages 141 and 206 of House Document No. 103-7.

          USE OF ASSOCIATION NAMES UPON DISSOLUTION; ENFORCEMENT      
      Section 101(e) [title VI, Sec. 602(e), (f)] of div. A of Pub. L.
    104-208 provided that:
      "(e) Association Names. - Upon dissolution in accordance with
    section 439(s) of the Higher Education Act of 1965 (20 U.S.C. 1087-
    2[(s)]), the names 'Student Loan Marketing Association', 'Sallie
    Mae', and any variations thereof may not be used by any entity
    engaged in any business similar to the business conducted pursuant
    to section 439 of such Act (as such section was in effect on the
    date of enactment of this Act [Sept. 30, 1996]) without the
    approval of the Secretary of the Treasury.
      "(f) Right to Enforce. - The Secretary of Education or the
    Secretary of the Treasury, as appropriate, may request that the
    Attorney General bring an action in the United States District
    Court for the District of Columbia for the enforcement of any
    provision of subsection (e), or may, under the direction or control
    of the Attorney General, bring such an action. Such court shall
    have jurisdiction and power to order and require compliance with
    subsection (e)."

-End-



-CITE-
    20 USC Sec. 1087-3                                          01/03/2007

-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. 1087-3. Reorganization of Student Loan Marketing Association
      through formation of Holding Company

-STATUTE-
    (a) Actions by Association's Board of Directors
      The Board of Directors of the Association shall take or cause to
    be taken all such action as the Board of Directors deems necessary
    or appropriate to effect, upon the shareholder approval described
    in subsection (b) of this section, a restructuring of the common
    stock ownership of the Association, as set forth in a plan of
    reorganization adopted by the Board of Directors (the terms of
    which shall be consistent with this section) so that all of the
    outstanding common shares of the Association shall be directly
    owned by a Holding Company. Such actions may include, in the Board
    of Director's discretion, a merger of a wholly owned subsidiary of
    the Holding Company with and into the Association, which would have
    the effect provided in the plan of reorganization and the law of
    the jurisdiction in which such subsidiary is incorporated. As part
    of the restructuring, the Board of Directors may cause - 
        (1) the common shares of the Association to be converted, on
      the reorganization effective date, to common shares of the
      Holding Company on a one for one basis, consistent with
      applicable State or District of Columbia law; and
        (2) Holding Company common shares to be registered with the
      Securities and Exchange Commission.
    (b) Shareholder approval
      The plan of reorganization adopted by the Board of Directors
    pursuant to subsection (a) of this section shall be submitted to
    common shareholders of the Association for their approval. The
    reorganization shall occur on the reorganization effective date,
    provided that the plan of reorganization has been approved by the
    affirmative votes, cast in person or by proxy, of the holders of a
    majority of the issued and outstanding shares of the Association
    common stock.
    (c) Transition
      In the event the shareholders of the Association approve the plan
    of reorganization under subsection (b) of this section, the
    following provisions shall apply beginning on the reorganization
    effective date:
      (1) In general
        Except as specifically provided in this section, until the
      dissolution date the Association shall continue to have all of
      the rights, privileges and obligations set forth in, and shall be
      subject to all of the limitations and restrictions of, section
      1087-2 of this title, and the Association shall continue to carry
      out the purposes of such section. The Holding Company and any
      subsidiary of the Holding Company (other than the Association)
      shall not be entitled to any of the rights, privileges, and
      obligations, and shall not be subject to the limitations and
      restrictions, applicable to the Association under section 1087-2
      of this title, except as specifically provided in this section.
      The Holding Company and any subsidiary of the Holding Company
      (other than the Association or a subsidiary of the Association)
      shall not purchase loans insured under this chapter until such
      time as the Association ceases acquiring such loans, except that
      the Holding Company may purchase such loans if the Association is
      merely continuing to acquire loans as a lender of last resort
      pursuant to section 1087-2(q) of this title or under an agreement
      with the Secretary described in paragraph (6).
      (2) Transfer of certain property
        (A) In general
          Except as provided in this section, on the reorganization
        effective date or as soon as practicable thereafter, the
        Association shall use the Association's best efforts to
        transfer to the Holding Company or any subsidiary of the
        Holding Company (or both), as directed by the Holding Company,
        all real and personal property of the Association (both
        tangible and intangible) other than the remaining property.
        Subject to the preceding sentence, such transferred property
        shall include all right, title, and interest in - 
            (i) direct or indirect subsidiaries of the Association
          (excluding special purpose funding companies in existence on
          September 30, 1996, and any interest in any government-
          sponsored enterprise);
            (ii) contracts, leases, and other agreements of the
          Association;
            (iii) licenses and other intellectual property of the
          Association; and
            (iv) any other property of the Association.
        (B) Construction
          Nothing in this paragraph shall be construed to prohibit the
        Association from transferring remaining property from time to
        time to the Holding Company or any subsidiary of the Holding
        Company, subject to the provisions of paragraph (4).
      (3) Transfer of personnel
        On the reorganization effective date, employees of the
      Association shall become employees of the Holding Company (or any
      subsidiary of the Holding Company), and the Holding Company (or
      any subsidiary of the Holding Company) shall provide all
      necessary and appropriate management and operational support
      (including loan servicing) to the Association, as requested by
      the Association. The Association, however, may obtain such
      management and operational support from persons or entities not
      associated with the Holding Company.
      (4) Dividends
        The Association may pay dividends in the form of cash or
      noncash distributions so long as at the time of the declaration
      of such dividends, after giving effect to the payment of such
      dividends as of the date of such declaration by the Board of
      Directors of the Association, the Association's capital would be
      in compliance with the capital standards and requirements set
      forth in section 1087-2(r) of this title. If, at any time after
      the reorganization effective date, the Association fails to
      comply with such capital standards, the Holding Company shall
      transfer with due diligence to the Association additional capital
      in such amounts as are necessary to ensure that the Association
      again complies with the capital standards.
      (5) Certification prior to dividend
        Prior to the payment of any dividend under paragraph (4), the
      Association shall certify to the Secretary of the Treasury that
      the payment of the dividend will be made in compliance with
      paragraph (4) and shall provide copies of all calculations needed
      to make such certification.
      (6) Restrictions on new business activity or acquisition of
        assets by Association
        (A) In general
          After the reorganization effective date, the Association
        shall not engage in any new business activities or acquire any
        additional program assets described in section 1087-2(d) of
        this title other than in connection with - 
            (i) student loan purchases through September 30, 2007;
            (ii) contractual commitments for future warehousing
          advances, or pursuant to letters of credit or standby bond
          purchase agreements, which are outstanding as of the
          reorganization effective date;
            (iii) the Association serving as a lender-of-last-resort
          pursuant to section 1087-2(q) of this title; and
            (iv) the Association's purchase of loans insured under this
          part, if the Secretary, with the approval of the Secretary of
          the Treasury, enters into an agreement with the Association
          for the continuation or resumption of the Association's
          secondary market purchase program because the Secretary
          determines there is inadequate liquidity for loans made under
          this part.
        (B) Agreement
          The Secretary is authorized to enter into an agreement
        described in clause (iv) of subparagraph (A) with the
        Association covering such secondary market activities. Any
        agreement entered into under such clause shall cover a period
        of 12 months, but may be renewed if the Secretary determines
        that liquidity remains inadequate. The fee provided under
        section 1087-2(h)(7) of this title shall not apply to loans
        acquired under any such agreement with the Secretary.
      (7) Issuance of debt obligations during the transition period;
        attributes of debt obligations
        After the reorganization effective date, the Association shall
      not issue debt obligations which mature later than September 30,
      2008, except in connection with serving as a lender-of-last-
      resort pursuant to section 1087-2(q) of this title or with
      purchasing loans under an agreement with the Secretary as
      described in paragraph (6). Nothing in this section shall modify
      the attributes accorded the debt obligations of the Association
      by section 1087-2 of this title, regardless of whether such debt
      obligations are incurred prior to, or at any time following, the
      reorganization effective date or are transferred to a trust in
      accordance with subsection (d) of this section.
      (8) Monitoring of safety and soundness
        (A) Obligation to obtain, maintain, and report information
          The Association shall obtain such information and make and
        keep such records as the Secretary of the Treasury may from
        time to time prescribe concerning - 
            (i) the financial risk to the Association resulting from
          the activities of any associated person, to the extent such
          activities are reasonably likely to have a material impact on
          the financial condition of the Association, including the
          Association's capital ratio, the Association's liquidity, or
          the Association's ability to conduct and finance the
          Association's operations; and
            (ii) the Association's policies, procedures, and systems
          for monitoring and controlling any such financial risk.
        (B) Summary reports
          The Secretary of the Treasury may require summary reports of
        the information described in subparagraph (A) to be filed no
        more frequently than quarterly. If, as a result of adverse
        market conditions or based on reports provided pursuant to this
        subparagraph or other available information, the Secretary of
        the Treasury has concerns regarding the financial or
        operational condition of the Association, the Secretary of the
        Treasury may, notwithstanding the preceding sentence and
        subparagraph (A), require the Association to make reports
        concerning the activities of any associated person whose
        business activities are reasonably likely to have a material
        impact on the financial or operational condition of the
        Association.
        (C) Separate operation of corporations
          (i) In general
            The funds and assets of the Association shall at all times
          be maintained separately from the funds and assets of the
          Holding Company or any subsidiary of the Holding Company and
          may be used by the Association solely to carry out the
          Association's purposes and to fulfill the Association's
          obligations.
          (ii) Books and records
            The Association shall maintain books and records that
          clearly reflect the assets and liabilities of the
          Association, separate from the assets and liabilities of the
          Holding Company or any subsidiary of the Holding Company.
          (iii) Corporate office
            The Association shall maintain a corporate office that is
          physically separate from any office of the Holding Company or
          any subsidiary of the Holding Company.
          (iv) Director
            No director of the Association who is appointed by the
          President pursuant to section 1087-2(c)(1)(A) of this title
          may serve as a director of the Holding Company.
          (v) One officer requirement
            At least one officer of the Association shall be an officer
          solely of the Association.
          (vi) Transactions
            Transactions between the Association and the Holding
          Company or any subsidiary of the Holding Company, including
          any loan servicing arrangements, shall be on terms no less
          favorable to the Association than the Association could
          obtain from an unrelated third party offering comparable
          services.
          (vii) Credit prohibition
            The Association shall not extend credit to the Holding
          Company or any subsidiary of the Holding Company nor
          guarantee or provide any credit enhancement to any debt
          obligations of the Holding Company or any subsidiary of the
          Holding Company.
          (viii) Amounts collected
            Any amounts collected on behalf of the Association by the
          Holding Company or any subsidiary of the Holding Company with
          respect to the assets of the Association, pursuant to a
          servicing contract or other arrangement between the
          Association and the Holding Company or any subsidiary of the
          Holding Company, shall be collected solely for the benefit of
          the Association and shall be immediately deposited by the
          Holding Company or such subsidiary to an account under the
          sole control of the Association.
        (D) Encumbrance of assets
          Notwithstanding any Federal or State law, rule, or
        regulation, or legal or equitable principle, doctrine, or
        theory to the contrary, under no circumstances shall the assets
        of the Association be available or used to pay claims or debts
        of or incurred by the Holding Company. Nothing in this
        subparagraph shall be construed to limit the right of the
        Association to pay dividends not otherwise prohibited under
        this subparagraph or to limit any liability of the Holding
        Company explicitly provided for in this section.
        (E) Holding Company activities
          After the reorganization effective date and prior to the
        dissolution date, all business activities of the Holding
        Company shall be conducted through subsidiaries of the Holding
        Company.
        (F) Confidentiality
          Any information provided by the Association pursuant to this
        section shall be subject to the same confidentiality
        obligations contained in section 1087-2(r)(12) of this title.
        (G) Definition
          For purposes of this paragraph, the term "associated person"
        means any person, other than a natural person, who is directly
        or indirectly controlling, controlled by, or under common
        control with, the Association.
      (9) Issuance of stock warrants
        (A) In general
          On the reorganization effective date, the Holding Company
        shall issue to the District of Columbia Financial
        Responsibility and Management Assistance Authority a number of
        stock warrants that is equal to one percent of the outstanding
        shares of the Association, determined as of the last day of the
        fiscal quarter preceding September 30, 1996, with each stock
        warrant entitling the holder of the stock warrant to purchase
        from the Holding Company one share of the registered common
        stock of the Holding Company or the Holding Company's
        successors or assigns, at any time on or before September 30,
        2008. The exercise price for such warrants shall be an amount
        equal to the average closing price of the common stock of the
        Association for the 20 business days prior to September 30,
        1996, on the exchange or market which is then the primary
        exchange or market for the common stock of the Association. The
        number of shares of Holding Company common stock subject to
        each stock warrant and the exercise price of each stock warrant
        shall be adjusted as necessary to reflect - 
            (i) the conversion of Association common stock into Holding
          Company common stock as part of the plan of reorganization
          approved by the Association's shareholders; and
            (ii) any issuance or sale of stock (including issuance or
          sale of treasury stock), stock split, recapitalization,
          reorganization, or other corporate event, if agreed to by the
          Secretary of the Treasury and the Association.
        (B) Authority to sell or exercise stock warrants; deposit of
          proceeds
          The District of Columbia Financial Responsibility and
        Management Assistance Authority is authorized to sell or
        exercise the stock warrants described in subparagraph (A). The
        District of Columbia Financial Responsibility and Management
        Assistance Authority shall deposit into the account established
        under section 1155(e) (!1) of this title amounts collected from
        the sale and proceeds resulting from the exercise of the stock
        warrants pursuant to this subparagraph.

      (10) Restrictions on transfer of Association shares and
        bankruptcy of Association
        After the reorganization effective date, the Holding Company
      shall not sell, pledge, or otherwise transfer the outstanding
      shares of the Association, or agree to or cause the liquidation
      of the Association or cause the Association to file a petition
      for bankruptcy under title 11, without prior approval of the
      Secretary of the Treasury and the Secretary of Education.
    (d) Termination of Association
      In the event the shareholders of the Association approve a plan
    of reorganization under subsection (b) of this section, the
    Association shall dissolve, and the Association's separate
    existence shall terminate on September 30, 2008, after discharge of
    all outstanding debt obligations and liquidation pursuant to this
    subsection. The Association may dissolve pursuant to this
    subsection prior to such date by notifying the Secretary of
    Education and the Secretary of the Treasury of the Association's
    intention to dissolve, unless within 60 days after receipt of such
    notice the Secretary of Education notifies the Association that the
    Association continues to be needed to serve as a lender of last
    resort pursuant to section 1087-2(q) of this title or continues to
    be needed to purchase loans under an agreement with the Secretary
    described in subsection (c)(6) of this section. On the dissolution
    date, the Association shall take the following actions:
      (1) Establishment of a trust
        The Association shall, under the terms of an irrevocable trust
      agreement that is in form and substance satisfactory to the
      Secretary of the Treasury, the Association and the appointed
      trustee, irrevocably transfer all remaining obligations of the
      Association to the trust and irrevocably deposit or cause to be
      deposited into such trust, to be held as trust funds solely for
      the benefit of holders of the remaining obligations, money or
      direct noncallable obligations of the United States or any agency
      thereof for which payment the full faith and credit of the United
      States is pledged, maturing as to principal and interest in such
      amounts and at such times as are determined by the Secretary of
      the Treasury to be sufficient, without consideration of any
      significant reinvestment of such interest, to pay the principal
      of, and interest on, the remaining obligations in accordance with
      their terms. To the extent the Association cannot provide money
      or qualifying obligations in the amount required, the Holding
      Company shall be required to transfer money or qualifying
      obligations to the trust in the amount necessary to prevent any
      deficiency.
      (2) Use of trust assets
        All money, obligations, or financial assets deposited into the
      trust pursuant to this subsection shall be applied by the trustee
      to the payment of the remaining obligations assumed by the trust.
      (3) Obligations not transferred to the trust
        The Association shall make proper provision for all other
      obligations of the Association not transferred to the trust,
      including the repurchase or redemption, or the making of proper
      provision for the repurchase or redemption, of any preferred
      stock of the Association outstanding. Any obligations of the
      Association which cannot be fully satisfied shall become
      liabilities of the Holding Company as of the date of dissolution.
      (4) Transfer of remaining assets
        After compliance with paragraphs (1) and (3), any remaining
      assets of the trust shall be transferred to the Holding Company
      or any subsidiary of the Holding Company, as directed by the
      Holding Company.
    (e) Operation of Holding Company
      In the event the shareholders of the Association approve the plan
    of reorganization under subsection (b) of this section, the
    following provisions shall apply beginning on the reorganization
    effective date:
      (1) Holding Company Board of Directors
        The number of members and composition of the Board of Directors
      of the Holding Company shall be determined as set forth in the
      Holding Company's charter or like instrument (as amended from
      time to time) or bylaws (as amended from time to time) and as
      permitted under the laws of the jurisdiction of the Holding
      Company's incorporation.
      (2) Holding Company name
        The names of the Holding Company and any subsidiary of the
      Holding Company (other than the Association) - 
          (A) may not contain the name "Student Loan Marketing
        Association"; and
          (B) may contain, to the extent permitted by applicable State
        or District of Columbia law, "Sallie Mae" or variations
        thereof, or such other names as the Board of Directors of the
        Association or the Holding Company deems appropriate.
      (3) Use of Sallie Mae name
        Subject to paragraph (2), the Association may assign to the
      Holding Company, or any subsidiary of the Holding Company, the
      "Sallie Mae" name as a trademark or service mark, except that
      neither the Holding Company nor any subsidiary of the Holding
      Company (other than the Association or any subsidiary of the
      Association) may use the "Sallie Mae" name on, or to identify the
      issuer of, any debt obligation or other security offered or sold
      by the Holding Company or any subsidiary of the Holding Company
      (other than a debt obligation or other security issued to and
      held by the Holding Company or any subsidiary of the Holding
      Company). The Association shall remit to the account established
      under section 1155(e) (!2) of this title, $5,000,000, within 60
      days of the reorganization effective date as compensation for the
      right to assign the "Sallie Mae" name as a trademark or service
      mark.

      (4) Disclosure required
        Until 3 years after the dissolution date, the Holding Company,
      and any subsidiary of the Holding Company (other than the
      Association), shall prominently display - 
          (A) in any document offering the Holding Company's
        securities, a statement that the obligations of the Holding
        Company and any subsidiary of the Holding Company are not
        guaranteed by the full faith and credit of the United States;
        and
          (B) in any advertisement or promotional materials which use
        the "Sallie Mae" name or mark, a statement that neither the
        Holding Company nor any subsidiary of the Holding Company is a
        government-sponsored enterprise or instrumentality of the
        United States.
    (f) Strict construction
      Except as specifically set forth in this section, nothing in this
    section shall be construed to limit the authority of the
    Association as a federally chartered corporation, or of the Holding
    Company as a State or District of Columbia chartered corporation.
    (g) Right to enforce
      The Secretary of Education or the Secretary of the Treasury, as
    appropriate, may request that the Attorney General bring an action
    in the United States District Court for the District of Columbia
    for the enforcement of any provision of this section, or may, under
    the direction or control of the Attorney General, bring such an
    action. Such court shall have jurisdiction and power to order and
    require compliance with this section.
    (h) Deadline for reorganization effective date
      This section shall be of no further force and effect in the event
    that the reorganization effective date does not occur on or before
    18 months after September 30, 1996.
    (i) Definitions
      For purposes of this section:
      (1) Association
        The term "Association" means the Student Loan Marketing
      Association.
      (2) Dissolution date
        The term "dissolution date" means September 30, 2008, or such
      earlier date as the Secretary of Education permits the transfer
      of remaining obligations in accordance with subsection (d) of
      this section.
      (3) Holding Company
        The term "Holding Company" means the new business corporation
      established pursuant to this section by the Association under the
      laws of any State of the United States or the District of
      Columbia for the purposes of the reorganization and restructuring
      described in subsection (a) of this section.
      (4) Remaining obligations
        The term "remaining obligations" means the debt obligations of
      the Association outstanding as of the dissolution date.
      (5) Remaining property
        The term "remaining property" means the following assets and
      liabilities of the Association which are outstanding as of the
      reorganization effective date:
          (A) Debt obligations issued by the Association.
          (B) Contracts relating to interest rate, currency, or
        commodity positions or protections.
          (C) Investment securities owned by the Association.
          (D) Any instruments, assets, or agreements described in
        section 1087-2(d) of this title (including, without limitation,
        all student loans and agreements relating to the purchase and
        sale of student loans, forward purchase and lending
        commitments, warehousing advances, academic facilities
        obligations, letters of credit, standby bond purchase
        agreements, liquidity agreements, and student loan revenue
        bonds or other loans).
          (E) Except as specifically prohibited by this section or
        section 1087-2 of this title, any other nonmaterial assets or
        liabilities of the Association which the Association's Board of
        Directors determines to be necessary or appropriate to the
        Association's operations.
      (6) Reorganization
        The term "reorganization" means the restructuring event or
      events (including any merger event) giving effect to the Holding
      Company structure described in subsection (a) of this section.
      (7) Reorganization effective date
        The term "reorganization effective date" means the effective
      date of the reorganization as determined by the Board of
      Directors of the Association, which shall not be earlier than the
      date that shareholder approval is obtained pursuant to subsection
      (b) of this section and shall not be later than the date that is
      18 months after September 30, 1996.
      (8) Subsidiary
        The term "subsidiary" means one or more direct or indirect
      subsidiaries.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 440, as added Pub. L. 104-208, div.
    A, title I, Sec. 101(e) [title VI, Sec. 602(a)], Sept. 30, 1996,
    110 Stat. 3009-233, 3009-275.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 104-208, div. A, title I, Sec. 101(e) [title VI, Sec.
    602(d)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-289, provided
    that this section is repealed effective one year after date on
    which all obligations of trust established under subsec. (d)(1) of
    this section have been extinguished, if reorganization occurs in
    accordance with this section, or date on which all obligations of
    trust established under section 1087-2(s)(3)(A) of this title have
    been extinguished, if reorganization does not occur in accordance
    with this section.

-REFTEXT-
                            REFERENCES IN TEXT                        
      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.
      Section 1155(e) of this title, referred to in subsecs. (c)(9)(B)
    and (e)(3), was in the original a reference to section 3(e) of the
    Student Loan Marketing Association Reorganization Act of 1996, and
    was translated as reading section 603(e) of that Act, which is Pub.
    L. 104-208, div. A, title I, Sec. 101(e) [title VI, Sec. 603(e)],
    Sept. 30, 1996, 110 Stat. 3009-233, 3009-293, to reflect the
    probable intent of Congress, because that Act does not contain a
    section 3(e), but does contain a section 603(e) which establishes
    the account referred to in text.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087-3, Pub. L. 89-329, title IV, Sec. 439A, as
    added Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 1976, 90 Stat.
    2141, related to a five-year nondischargeability of certain loan
    debts, prior to repeal by Pub. L. 95-598, title III, Sec. 317, Nov.
    6, 1978, 92 Stat. 2678, eff. Nov. 6, 1978.
      A prior section 1087-3a, Pub. L. 89-329, title IV, Sec. 439B, as
    added Pub. L. 95-566, Sec. 8, Nov. 1, 1978, 92 Stat. 2404,
    authorized any loan under this part to be counted as part of the
    expected family contribution in the determination of need, prior to
    repeal by Pub. L. 97-35, title V, Sec. 532(b)(2), Aug. 13, 1981, 95
    Stat. 452, applicable to loans for the statement required by
    section 1078(a)(2)(A) of this title is completed on or after Oct.
    1, 1981.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1087-4                                          01/03/2007

-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. 1087-4. Discrimination in secondary markets prohibited

-STATUTE-
      The Student Loan Marketing Association (and, if the Association
    is privatized under section 1087-3 of this title, any successor
    entity functioning as a secondary market for loans under this part,
    including the Holding Company described in such section) shall not
    engage directly or indirectly in any pattern or practice that
    results in a denial of a borrower's access to loans under this part
    because of the borrower's race, sex, color, religion, national
    origin, age, disability status, income, attendance at a particular
    eligible institution, length of the borrower's educational program,
    or the borrower's academic year at an eligible institution.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 440A, as added Pub. L. 104-208,
    div. A, title I, Sec. 101(e) [title VI, Sec. 604], Sept. 30, 1996,
    110 Stat. 3009-233, 3009-293.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087-4, Pub. L. 89-329, title IV, Sec. 440, as
    added Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 1976, 90 Stat.
    2141, provided for criminal penalties, prior to repeal by Pub. L.
    96-374, title IV, Sec. 451(b), Oct. 3, 1980, 94 Stat. 1458, eff.
    Oct. 1, 1980. See section 1097 of this title.

-End-


-CITE-
    20 USC Part C - William D. Ford Federal Direct Loan
                     Program                               01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part C - William D. Ford Federal Direct Loan Program

-HEAD-
           PART C - WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM       

-COD-
                               CODIFICATION                           
      This part was, in the original, part D of title IV of Pub. L. 89-
    329, the Higher Education Act of 1965. The letter designation was
    changed from "D" to "C" for codification purposes. Part C of title
    IV of Pub. L. 89-329, consisting of sections 441 to 447, as added
    by Pub. L. 99-498, title IV, Sec. 403(a), Oct. 17, 1986, 100 Stat.
    1429, is set out as section 2751 et seq. of Title 42, The Public
    Health and Welfare, because sections 441 to 446 of Pub. L. 89-329
    had originally been enacted as part C of title I of the Economic
    Opportunity Act of 1964, consisting of sections 121 to 126 of Pub.
    L. 88-452, Aug. 20, 1964, 78 Stat. 513, prior to the transfer of
    such sections into Pub. L. 89-329, and had already been classified
    to section 2751 et seq. of Title 42 at the time of the transfer.

-End-



-CITE-
    20 USC Sec. 1087a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part C - William D. Ford Federal Direct Loan Program

-HEAD-
    Sec. 1087a. Program authority

-STATUTE-
    (a) In general
      There are hereby made available, in accordance with the
    provisions of this part, such sums as may be necessary to make
    loans to all eligible students (and the eligible parents of such
    students) in attendance at participating institutions of higher
    education selected by the Secretary, to enable such students to
    pursue their courses of study at such institutions during the
    period beginning July 1, 1994. Such loans shall be made by
    participating institutions, or consortia thereof, that have
    agreements with the Secretary to originate loans, or by alternative
    originators designated by the Secretary to make loans for students
    in attendance at participating institutions (and their parents).
    (b) Designation
      (1) Program
        The program established under this part shall be referred to as
      the "William D. Ford Federal Direct Loan Program".
      (2) Direct loans
        Notwithstanding any other provision of this part, loans made to
      borrowers under this part that, except as otherwise specified in
      this part, have the same terms, conditions, and benefits as loans
      made to borrowers under section 1078 of this title, shall be
      known as "Federal Direct Stafford/Ford Loans".

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 451, as added Pub. L. 99-498, title
    IV, Sec. 404, Oct. 17, 1986, 100 Stat. 1437; amended Pub. L. 102-
    325, title IV, Sec. 451, July 23, 1992, 106 Stat. 569; Pub. L. 103-
    66, title IV, Sec. 4021, Aug. 10, 1993, 107 Stat. 341; Pub. L. 103-
    382, title III, Sec. 358A, Oct. 20, 1994, 108 Stat. 3968.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087a, Pub. L. 89-329, title IV, Sec. 451, as
    added Pub. L. 90-575, title I, Sec. 141, Oct. 16, 1968, 82 Stat.
    1031; amended Pub. L. 92-318, title I, Sec. 136(a), (b)(1), June
    23, 1972, 86 Stat. 272, authorized appropriations for cooperative
    education programs from the fiscal year ending June 30, 1969,
    through the fiscal year ending prior to July 1, 1975, prior to
    repeal by Pub. L. 94-482, title I, Sec. 129(a), Oct. 12, 1976, 90
    Stat. 2144, eff. 30 days after Oct. 12, 1976.

                                AMENDMENTS                            
      1994 - Pub. L. 103-382 designated existing provisions as subsec.
    (a), added heading, and added subsec. (b).
      1993 - Pub. L. 103-66 amended section generally, substituting
    provisions relating to program authority for former provisions
    relating to program and payment authority.
      1992 - Pub. L. 102-325 amended section generally, substituting
    provisions relating to program and payment authority for Federal
    direct loan demonstration program for former provisions relating to
    statement of purpose of income contingent direct loan demonstration
    project.

                     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.

               INCOME CONTINGENT LOAN DISTRIBUTION OF FUNDS           
      Section 452 of Pub. L. 102-325 provided that:
      "(a) In General. - After September 30, 1992, and not later than
    March 31, 1992, the capital balance of the student loan fund
    established under part D of title IV of the Higher Education Act of
    1965 [20 U.S.C. 1087a et seq.] (as such Act was in effect on the
    date of enactment of this Act [July 23, 1992]) shall be distributed
    by allowing institutions to transfer any remaining funds, including
    future collections and all other funds at the institution's
    discretion, to such institution's part E [20 U.S.C. 1087aa et seq.]
    account, part C [42 U.S.C. 2751 et seq.] fund, or subpart 3 of part
    A [20 U.S.C. 1070b et seq.] fund under the terms and conditions of
    the appropriate program.
      "(b) Conversion of Existing Loans. - Institutions may, after July
    1, 1992, convert all outstanding loans made under part D of title
    IV of the Higher Education Act of 1965 [20 U.S.C. 1087a et seq.]
    (as such Act was in effect on such date) to part E [20 U.S.C.
    1087aa et seq.] loans, provided that such institution - 
        "(1) notify the borrower of such conversion;
        "(2) obtain a signed part E promissory note from the borrower
      for the remaining amount outstanding; and
        "(3) provide the borrower in writing with a description of all
      terms and conditions of the new loan."

-End-



-CITE-
    20 USC Sec. 1087b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part C - William D. Ford Federal Direct Loan Program

-HEAD-
    Sec. 1087b. Funds for origination of direct student loans

-STATUTE-
    (a) In general
      The Secretary shall provide, on the basis of the need and the
    eligibility of students at each participating institution, and
    parents of such students, for such loans, funds for student and
    parent loans under this part - 
        (1) directly to an institution of higher education that has an
      agreement with the Secretary under section 1087d(a) of this title
      to participate in the direct student loan programs under this
      part and that also has an agreement with the Secretary under
      section 1087d(b) of this title to originate loans under this
      part; or
        (2) through an alternative originator designated by the
      Secretary to students (and parents of students) attending
      institutions of higher education that have an agreement with the
      Secretary under section 1087d(a) of this title but that do not
      have an agreement with the Secretary under section 1087d(b) of
      this title.
    (b) No entitlement to participate or originate
      No institution of higher education shall have a right to
    participate in the programs authorized by this part, to originate
    loans, or to perform any program function under this part. Nothing
    in this subsection shall be construed so as to limit the
    entitlement of an eligible student attending a participating
    institution (or the eligible parent of such student) to borrow
    under this part.
    (c) Delivery of loan funds
      Loan funds shall be paid and delivered to an institution by the
    Secretary prior to the beginning of the payment period established
    by the Secretary in a manner that is consistent with payment and
    delivery of Federal Pell Grants under subpart 1 of part A of this
    subchapter.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 452, as added Pub. L. 99-498, title
    IV, Sec. 404, Oct. 17, 1986, 100 Stat. 1437; amended Pub. L. 102-
    325, title IV, Sec. 451, July 23, 1992, 106 Stat. 569; Pub. L. 103-
    66, title IV, Sec. 4021, Aug. 10, 1993, 107 Stat. 341; Pub. L. 105-
    33, title VI, Sec. 6102, Aug. 5, 1997, 111 Stat. 652; Pub. L. 105-
    244, title IV, Sec. 401(g)(5), Oct. 7, 1998, 112 Stat. 1652.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087b, Pub. L. 89-329, title IV, Sec. 452, as
    added Pub. L. 90-575, title I, Sec. 141, Oct. 16, 1968, 82 Stat.
    1031, authorized grants for programs of cooperative education,
    prior to repeal by Pub. L. 94-482, title I, Sec. 129(a), Oct. 12,
    1976, 90 Stat. 2144, eff. 30 days after Oct. 12, 1976.

                                AMENDMENTS                            
      1998 - Subsec. (c). Pub. L. 105-244 substituted "Federal Pell
    Grants" for "basic grants".
      1997 - Subsecs. (b) to (d). Pub. L. 105-33 redesignated subsecs.
    (c) and (d) as (b) and (c), respectively, and struck out former
    subsec. (b) which required the Secretary to pay fees to
    institutions of higher education and alternative loan originators
    to assist in meeting the cost of loan origination.
      1993 - Pub. L. 103-66 amended section generally, substituting
    provisions relating to funds for origination of direct student
    loans for former provisions relating to payment rules.
      1992 - Pub. L. 102-325 amended section generally, substituting
    provisions relating to payment rules for former provisions
    authorizing demonstration projects.

                     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.

-End-



-CITE-
    20 USC Sec. 1087c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part C - William D. Ford Federal Direct Loan Program

-HEAD-
    Sec. 1087c. Selection of institutions for participation and
      origination

-STATUTE-
    (a) General authority
      The Secretary shall enter into agreements pursuant to section
    1087d(a) of this title with institutions of higher education to
    participate in the direct student loan program under this part, and
    agreements pursuant to section 1087d(b) of this title with
    institutions of higher education, or consortia thereof, to
    originate loans in such program, for academic years beginning on or
    after July 1, 1994. Alternative origination services, through which
    an entity other than the participating institution at which the
    student is in attendance originates the loan, shall be provided by
    the Secretary, through 1 or more contracts under section 1087f(b)
    of this title or such other means as the Secretary may provide, for
    students attending participating institutions that do not originate
    direct student loans under this part. Such agreements for the
    academic year 1994-1995 shall, to the extent feasible, be entered
    into not later than January 1, 1994.
    (b) Selection criteria
      (1) Application
        Each institution of higher education desiring to participate in
      the direct student loan program under this part shall submit an
      application satisfactory to the Secretary containing such
      information and assurances as the Secretary may require.
      (2) Selection procedure
        The Secretary shall select institutions for participation in
      the direct student loan program under this part, and shall enter
      into agreements with such institutions under section 1087d(a) of
      this title, from among those institutions that submit the
      applications described in paragraph (1), and meet such other
      eligibility requirements as the Secretary shall prescribe.
    (c) Selection criteria for origination
      (1) In general
        The Secretary may enter into a supplemental agreement with an
      institution (or a consortium of such institutions) that - 
          (A) has an agreement under subsection 1087d(a) of this title;
          (B) desires to originate loans under this part; and
          (C) meets the criteria described in paragraph (2).
      (2) Selection criteria
        The Secretary may approve an institution to originate loans
      only if such institution - 
          (A) is not on the reimbursement system of payment for any of
        the programs under subpart 1 or 3 of part A of this subchapter,
        part C of subchapter I of chapter 34 of title 42, or part D of
        this subchapter;
          (B) is not overdue on program or financial reports or audits
        required under this subchapter;
          (C) is not subject to an emergency action, or a limitation,
        suspension, or termination under section 1078(b)(1)(T),
        1082(h), or 1094(c) of this title;
          (D) in the opinion of the Secretary, has not had severe
        performance deficiencies for any of the programs under this
        subchapter, including such deficiencies demonstrated by audits
        or program reviews submitted or conducted during the 5 calendar
        years immediately preceding the date of application;
          (E) provides an assurance that such institution has no
        delinquent outstanding debts to the Federal Government, unless
        such debts are being repaid under or in accordance with a
        repayment arrangement satisfactory to the Federal Government,
        or the Secretary in the Secretary's discretion determines that
        the existence or amount of such debts has not been finally
        determined by the cognizant Federal agency; and
          (F) meets such other criteria as the Secretary may establish
        to protect the financial interest of the United States and to
        promote the purposes of this part.
      (3) Regulations governing approval
        The Secretary shall promulgate and publish in the Federal
      Register regulations governing the approval of institutions to
      originate loans under this part in accordance with section
      1087g(a)(2) of this title.
    (d) Eligible institutions
      The Secretary may not select an institution of higher education
    for participation under this section unless such institution is an
    eligible institution under section 1085(a) of this title.
    (e) Consortia
      Subject to such requirements as the Secretary may prescribe,
    eligible institutions of higher education (as determined under
    subsection (d) of this section) with agreements under section
    1087d(a) of this title may apply to the Secretary as consortia to
    originate loans under this part for students in attendance at such
    institutions. Each such institution shall be required to meet the
    requirements of subsection (c) of this section with respect to loan
    origination.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 453, as added Pub. L. 99-498, title
    IV, Sec. 404, Oct. 17, 1986, 100 Stat. 1438; amended Pub. L. 102-
    325, title IV, Sec. 451, July 23, 1992, 106 Stat. 569; Pub. L. 103-
    66, title IV, Sec. 4021, Aug. 10, 1993, 107 Stat. 342; Pub. L. 103-
    208, Sec. 2(e), Dec. 20, 1993, 107 Stat. 2470; Pub. L. 105-244,
    title IV, Sec. 451, Oct. 7, 1998, 112 Stat. 1715.)

-COD-
                               CODIFICATION                           
      Amendment by section 2 of Pub. L. 103-208 (which was effective as
    if included in Pub. L. 102-325) was executed to this section as
    amended by Pub. L. 102-325 and Pub. L. 103-66, to reflect the
    probable intent of Congress.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087c, Pub. L. 89-329, title IV, Sec. 453, as
    added Pub. L. 90-575, title I, Sec. 141, Oct. 16, 1968, 82 Stat.
    1032; amended Pub. L. 92-318, title I, Sec. 136(b)(2), June 23,
    1972, 86 Stat. 272, authorized grants and contracts for training
    and research in cooperative education programs, prior to repeal by
    Pub. L. 94-482, title I, Sec. 129(a), Oct. 12, 1976, 90 Stat. 2144,
    eff. 30 days after Oct. 12, 1976.

                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-244, Sec. 451(a), amended
    heading, redesignated par. (1) as entire subsec., and struck out
    pars. (2) to (4) which provided for transition from loan programs
    under part B of this subchapter to direct student loan program
    under this part and defined term "new student loan volume".
      Subsec. (b)(2). Pub. L. 105-244, Sec. 451(b), substituted
    "prescribe." for "prescribe, by, to the extent possible - 
        "(A)(i) categorizing such institutions according to anticipated
      loan volume, length of academic program, control of the
      institution, highest degree offered, size of student enrollment,
      geographic location, annual loan volume, and default experience;
      and
        "(ii) beginning in academic year 1995-1996 selecting
      institutions that are reasonably representative of each of the
      categories described pursuant to clause (i); and
        "(B) if the Secretary determines it necessary in order to carry
      out the purposes of subparagraph (A) and attain such reasonable
      representation (as required by subparagraph (A)), selecting
      additional institutions."
      Subsec. (c)(2). Pub. L. 105-244, Sec. 451(c)(1)(A), (B),
    substituted "Selection criteria" for "Transition selection
    criteria" in heading and "The Secretary" for "For academic year
    1994-1995, the Secretary" in introductory provisions.
      Subsec. (c)(2)(A). Pub. L. 105-244, Sec. 451(c)(1)(E),
    redesignated subpar. (B) as (A).
      Pub. L. 105-244, Sec. 451(c)(1)(C), struck out subpar. (A) which
    read as follows: "made loans under part D of this subchapter in
    academic year 1993-1994 and did not exceed the applicable maximum
    default rate under section 1087bb(g) of this title for the most
    recent fiscal year for which data are available;".
      Subsec. (c)(2)(B) to (D). Pub. L. 105-244, Sec. 451(c)(1)(E),
    redesignated subpars. (C), (D), and (F) as (B) to (D),
    respectively. Former subpar. (B) redesignated (A).
      Subsec. (c)(2)(E). Pub. L. 105-244, Sec. 451(c)(1)(E),
    redesignated subpar. (G) as (E).
      Pub. L. 105-244, Sec. 451(c)(1)(D), struck out subpar. (E) which
    read as follows: "in the opinion of the Secretary, has not had
    significant deficiencies identified by a State postsecondary review
    entity under subpart 1 of part G of this subchapter;".
      Subsec. (c)(2)(F) to (H). Pub. L. 105-244, Sec. 451(c)(1)(E),
    redesignated subpars. (G) and (H) as (E) and (F), respectively.
    Former subpar. (F) redesignated (D).
      Subsec. (c)(3). Pub. L. 105-244, Sec. 451(c)(2), struck out
    "after transition" after "approval" in heading and substituted "The
    Secretary" for "For academic year 1995-1996 and subsequent academic
    years, the Secretary" in text.
      1993 - Pub. L. 103-66 amended section generally, substituting
    provisions relating to selection of institutions for participation
    and origination for former provisions relating to selection by
    Secretary.
      Subsec. (b)(2)(B). Pub. L. 103-208 amended subpar. (B) generally.
    Prior to amendment, subpar. (B) read as follows: "if the Secretary
    determines it necessary to carry out the purposes of this part,
    selecting additional institutions." See Codification note above.
      1992 - Pub. L. 102-325 amended section generally, substituting
    provisions relating to selection by the Secretary for former
    provisions relating to agreements with institutions of higher
    education.

                     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.

-End-



-CITE-
    20 USC Sec. 1087d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part C - William D. Ford Federal Direct Loan Program

-HEAD-
    Sec. 1087d. Agreements with institutions

-STATUTE-
    (a) Participation agreements
      An agreement with any institution of higher education for
    participation in the direct student loan program under this part
    shall - 
        (1) provide for the establishment and maintenance of a direct
      student loan program at the institution under which the
      institution will - 
          (A) identify eligible students who seek student financial
        assistance at such institution in accordance with section 1091
        of this title;
          (B) estimate the need of each such student as required by
        part E of this subchapter for an academic year, except that,
        any loan obtained by a student under this part with the same
        terms as loans made under section 1078-8 of this title (except
        as otherwise provided in this part), or a loan obtained by a
        parent under this part with the same terms as loans made under
        section 1078-2 of this title (except as otherwise provided in
        this part), or obtained under any State-sponsored or private
        loan program, may be used to offset the expected family
        contribution of the student for that year;
          (C) provide a statement that certifies the eligibility of any
        student to receive a loan under this part that is not in excess
        of the annual or aggregate limit applicable to such loan,
        except that the institution may, in exceptional circumstances
        identified by the Secretary, refuse to certify a statement that
        permits a student to receive a loan under this part, or certify
        a loan amount that is less than the student's determination of
        need (as determined under part E of this subchapter), if the
        reason for such action is documented and provided in written
        form to such student;
          (D) set forth a schedule for disbursement of the proceeds of
        the loan in installments, consistent with the requirements of
        section 1078-7 of this title; and
          (E) provide timely and accurate information - 
            (i) concerning the status of student borrowers (and
          students on whose behalf parents borrow under this part)
          while such students are in attendance at the institution and
          concerning any new information of which the institution
          becomes aware for such students (or their parents) after such
          borrowers leave the institution, to the Secretary for the
          servicing and collecting of loans made under this part; and
            (ii) if the institution does not have an agreement with the
          Secretary under subsection (b) of this section, concerning
          student eligibility and need, as determined under
          subparagraphs (A) and (B), to the Secretary as needed for the
          alternative origination of loans to eligible students and
          parents in accordance with this part;

        (2) provide assurances that the institution will comply with
      requirements established by the Secretary relating to student
      loan information with respect to loans made under this part;
        (3) provide that the institution accepts responsibility and
      financial liability stemming from its failure to perform its
      functions pursuant to the agreement;
        (4) provide that students at the institution and their parents
      (with respect to such students) will be eligible to participate
      in the programs under part B of this subchapter at the discretion
      of the Secretary for the period during which such institution
      participates in the direct student loan program under this part,
      except that a student or parent may not receive loans under both
      this part and part B of this subchapter for the same period of
      enrollment;
        (5) provide for the implementation of a quality assurance
      system, as established by the Secretary and developed in
      consultation with institutions of higher education, to ensure
      that the institution is complying with program requirements and
      meeting program objectives;
        (6) provide that the institution will not charge any fees of
      any kind, however described, to student or parent borrowers for
      origination activities or the provision of any information
      necessary for a student or parent to receive a loan under this
      part, or any benefits associated with such loan; and
        (7) include such other provisions as the Secretary determines
      are necessary to protect the interests of the United States and
      to promote the purposes of this part.
    (b) Origination
      An agreement with any institution of higher education, or
    consortia thereof, for the origination of loans under this part
    shall - 
        (1) supplement the agreement entered into in accordance with
      subsection (a) of this section;
        (2) include provisions established by the Secretary that are
      similar to the participation agreement provisions described in
      paragraphs (1)(E)(ii), (2), (3), (4), (5), (6), and (7) of
      subsection (a) of this section, as modified to relate to the
      origination of loans by the institution or consortium;
        (3) provide that the institution or consortium will originate
      loans to eligible students and parents in accordance with this
      part; and
        (4) provide that the note or evidence of obligation on the loan
      shall be the property of the Secretary.
    (c) Withdrawal and termination procedures
      The Secretary shall establish procedures by which institutions or
    consortia may withdraw or be terminated from the program under this
    part.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 454, as added Pub. L. 99-498, title
    IV, Sec. 404, Oct. 17, 1986, 100 Stat. 1438; amended Pub. L. 100-
    50, Sec. 12, June 3, 1987, 101 Stat. 348; Pub. L. 102-325, title
    IV, Sec. 451, July 23, 1992, 106 Stat. 571; Pub. L. 103-66, title
    IV, Sec. 4021, Aug. 10, 1993, 107 Stat. 345.)


-MISC1-
                                AMENDMENTS                            
      1993 - Pub. L. 103-66 amended section generally, substituting
    provisions relating to agreements with institutions, consisting of
    subsecs. (a) to (c), for former provisions relating to requirements
    of agreements, consisting of pars. (1) to (7).
      1992 - Pub. L. 102-325 amended section generally, substituting
    provisions relating to requirements of agreements for former
    provisions relating to terms of loans under pilot program.
      1987 - Subsec. (a)(4). Pub. L. 100-50 amended par. (4) generally.
    Prior to amendment, par. (4) read as follows: "The interest rate on
    all such loans shall be the rate equal to the rate obtained for
    each calendar year (A) by computing the average of the bond
    equivalent rates of 91-day Treasury bills auctioned for such 3-
    month period preceding such year, and (B) by adding 3 percent to
    the resulting percent."

                     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.

-End-



-CITE-
    20 USC Sec. 1087e                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part C - William D. Ford Federal Direct Loan Program

-HEAD-
    Sec. 1087e. Terms and conditions of loans

-STATUTE-
    (a) In general
      (1) Parallel terms, conditions, benefits, and amounts
        Unless otherwise specified in this part, loans made to
      borrowers under this part shall have the same terms, conditions,
      and benefits, and be available in the same amounts, as loans made
      to borrowers under sections 1078, 1078-2, 1078-3, and 1078-8 of
      this title.
      (2) Designation of loans
        Loans made to borrowers under this part that, except as
      otherwise specified in this part, have the same terms,
      conditions, and benefits as loans made to borrowers under - 
          (A) section 1078 of this title shall be known as "Federal
        Direct Stafford Loans";
          (B) section 1078-2 of this title shall be known as "Federal
        Direct PLUS Loans";
          (C) section 1078-3 of this title shall be known as "Federal
        Direct Consolidation Loans"; and
          (D) section 1078-8 of this title shall be known as "Federal
        Direct Unsubsidized Stafford Loans".
    (b) Interest rate
      (1) Rates for FDSL and FDUSL
        For Federal Direct Stafford Loans and Federal Direct
      Unsubsidized Stafford Loans for which the first disbursement is
      made on or after July 1, 1994, the applicable rate of interest
      shall, during any 12-month period beginning on July 1 and ending
      on June 30, be determined on the preceding June 1 and be equal to
      - 
          (A) the bond equivalent rate of 91-day Treasury bills
        auctioned at the final auction held prior to such June 1; plus
          (B) 3.1 percent,

      except that such rate shall not exceed 8.25 percent.
      (2) In school and grace period rules
        (A) Notwithstanding the provisions of paragraph (1), but
      subject to paragraph (3), with respect to any Federal Direct
      Stafford Loan or Federal Direct Unsubsidized Stafford Loan for
      which the first disbursement is made on or after July 1, 1995,
      the applicable rate of interest for interest which accrues - 
          (i) prior to the beginning of the repayment period of the
        loan; or
          (ii) during the period in which principal need not be paid
        (whether or not such principal is in fact paid) by reason of a
        provision described in section 1078(b)(1)(M) or 1077(a)(2)(C)
        of this title,

      shall not exceed the rate determined under subparagraph (B).
        (B) For the purpose of subparagraph (A), the rate determined
      under this subparagraph shall, during any 12-month period
      beginning on July 1 and ending on June 30, be determined on the
      preceding June 1 and be equal to - 
          (i) the bond equivalent rate of 91-day Treasury bills
        auctioned at the final auction prior to such June 1; plus
          (ii) 2.5 percent,

      except that such rate shall not exceed 8.25 percent.
      (3) Out-year rule
        Notwithstanding paragraphs (1) and (2), for Federal Direct
      Stafford Loans and Federal Direct Unsubsidized Stafford Loans
      made on or after July 1, 1998, the applicable rate of interest
      shall, during any 12-month period beginning on July 1 and ending
      on June 30, be determined on the preceding June 1 and be equal to
      - 
          (A) the bond equivalent rate of the security with a
        comparable maturity as established by the Secretary; plus
          (B) 1.0 percent,

      except that such rate shall not exceed 8.25 percent.
      (4) Rates for FDPLUS
        (A)(i) For Federal Direct PLUS Loans for which the first
      disbursement is made on or after July 1, 1994, the applicable
      rate of interest shall, during any 12-month period beginning on
      July 1 and ending on or before June 30, 2001, be determined on
      the preceding June 1 and be equal to - 
          (I) the bond equivalent rate of 52-week Treasury bills
        auctioned at final auction held prior to such June 1; plus
          (II) 3.1 percent,

      except that such rate shall not exceed 9 percent.
        (ii) For any 12-month period beginning on July 1 of 2001 or any
      succeeding year, the applicable rate of interest determined under
      this subparagraph shall be determined on the preceding June 26
      and be equal to - 
          (I) the weekly average 1-year constant maturity Treasury
        yield, as published by the Board of Governors of the Federal
        Reserve System, for the last calendar week ending on or before
        such June 26; plus
          (II) 3.1 percent,

      except that such rate shall not exceed 9 percent.
        (B) For Federal Direct PLUS loans made on or after July 1,
      1998, the applicable rate of interest shall, during any 12-month
      period beginning on July 1 and ending on June 30, be determined
      on the preceding June 1 and be equal to - 
          (i) the bond equivalent rate of the security with a
        comparable maturity as established by the Secretary; plus
          (ii) 2.1 percent,

      except that such rate shall not exceed 9 percent.
      (5) Temporary interest rate provision
        (A) Rates for FDSL and FDUSL
          Notwithstanding the preceding paragraphs of this subsection,
        for Federal Direct Stafford Loans and Federal Direct
        Unsubsidized Stafford Loans for which the first disbursement is
        made on or after July 1, 1998, and before October 1, 1998, the
        applicable rate of interest shall, during any 12-month period
        beginning on July 1 and ending on June 30, be determined on the
        preceding June 1 and be equal to - 
            (i) the bond equivalent rate of 91-day Treasury bills
          auctioned at the final auction held prior to such June 1;
          plus
            (ii) 2.3 percent,

        except that such rate shall not exceed 8.25 percent.
        (B) In school and grace period rules
          Notwithstanding the preceding paragraphs of this subsection,
        with respect to any Federal Direct Stafford Loan or Federal
        Direct Unsubsidized Stafford Loan for which the first
        disbursement is made on or after July 1, 1998, and before
        October 1, 1998, the applicable rate of interest for interest
        which accrues - 
            (i) prior to the beginning of the repayment period of the
          loan; or
            (ii) during the period in which principal need not be paid
          (whether or not such principal is in fact paid) by reason of
          a provision described in section 1078(b)(1)(M) or
          1077(a)(2)(C) of this title,

        shall be determined under subparagraph (A) by substituting "1.7
        percent" for "2.3 percent".
        (C) PLUS loans
          Notwithstanding the preceding paragraphs of this subsection,
        with respect to Federal Direct PLUS Loan for which the first
        disbursement is made on or after July 1, 1998, and before
        October 1, 1998, the applicable rate of interest shall be
        determined under subparagraph (A) - 
            (i) by substituting "3.1 percent" for "2.3 percent"; and
            (ii) by substituting "9.0 percent" for "8.25 percent".
      (6) Interest rate provision for new loans on or after October 1,
        1998, and before July 1, 2006
        (A) Rates for FDSL and FDUSL
          Notwithstanding the preceding paragraphs of this subsection,
        for Federal Direct Stafford Loans and Federal Direct
        Unsubsidized Stafford Loans for which the first disbursement is
        made on or after October 1, 1998, and before July 1, 2006, the
        applicable rate of interest shall, during any 12-month period
        beginning on July 1 and ending on June 30, be determined on the
        preceding June 1 and be equal to - 
            (i) the bond equivalent rate of 91-day Treasury bills
          auctioned at the final auction held prior to such June 1;
          plus
            (ii) 2.3 percent,

        except that such rate shall not exceed 8.25 percent.
        (B) In school and grace period rules
          Notwithstanding the preceding paragraphs of this subsection,
        with respect to any Federal Direct Stafford Loan or Federal
        Direct Unsubsidized Stafford Loan for which the first
        disbursement is made on or after October 1, 1998, and before
        July 1, 2006, the applicable rate of interest for interest
        which accrues - 
            (i) prior to the beginning of the repayment period of the
          loan; or
            (ii) during the period in which principal need not be paid
          (whether or not such principal is in fact paid) by reason of
          a provision described in section 1078(b)(1)(M) or
          1077(a)(2)(C) of this title,

        shall be determined under subparagraph (A) by substituting "1.7
        percent" for "2.3 percent".
        (C) PLUS loans
          Notwithstanding the preceding paragraphs of this subsection,
        with respect to Federal Direct PLUS Loan for which the first
        disbursement is made on or after October 1, 1998, and before
        July 1, 2006, the applicable rate of interest shall be
        determined under subparagraph (A) - 
            (i) by substituting "3.1 percent" for "2.3 percent"; and
            (ii) by substituting "9.0 percent" for "8.25 percent".
        (D) Consolidation loans
          Notwithstanding the preceding paragraphs of this subsection,
        any Federal Direct Consolidation loan for which the application
        is received on or after February 1, 1999, and before July 1,
        2006, shall bear interest at an annual rate on the unpaid
        principal balance of the loan that is equal to the lesser of - 
            (i) the weighted average of the interest rates on the loans
          consolidated, rounded to the nearest higher one-eighth of one
          percent; or
            (ii) 8.25 percent.
        (E) Temporary rules for consolidation loans
          Notwithstanding the preceding paragraphs of this subsection,
        any Federal Direct Consolidation loan for which the application
        is received on or after October 1, 1998, and before February 1,
        1999, shall bear interest at an annual rate on the unpaid
        principal balance of the loan that is equal to - 
            (i) the bond equivalent rate of 91-day Treasury bills
          auctioned at the final auction held prior to such June 1;
          plus
            (ii) 2.3 percent,

        except that such rate shall not exceed 8.25 percent.
      (7) Interest rate provision for new loans on or after July 1,
        2006
        (A) Rates for FDSL and FDUSL
          Notwithstanding the preceding paragraphs of this subsection,
        for Federal Direct Stafford Loans and Federal Direct
        Unsubsidized Stafford Loans for which the first disbursement is
        made on or after July 1, 2006, the applicable rate of interest
        shall be 6.8 percent on the unpaid principal balance of the
        loan.
        (B) PLUS loans
          Notwithstanding the preceding paragraphs of this subsection,
        with respect to any Federal Direct PLUS loan for which the
        first disbursement is made on or after July 1, 2006, the
        applicable rate of interest shall be 7.9 percent on the unpaid
        principal balance of the loan.
        (C) Consolidation loans
          Notwithstanding the preceding paragraphs of this subsection,
        any Federal Direct Consolidation loan for which the application
        is received on or after July 1, 2006, shall bear interest at an
        annual rate on the unpaid principal balance of the loan that is
        equal to the lesser of - 
            (i) the weighted average of the interest rates on the loans
          consolidated, rounded to the nearest higher one-eighth of one
          percent; or
            (ii) 8.25 percent.
      (8) Repayment incentives
        (A) In general
          Notwithstanding any other provision of this part, the
        Secretary is authorized to prescribe by regulation such
        reductions in the interest rate or origination fee paid by a
        borrower of a loan made under this part as the Secretary
        determines appropriate to encourage on-time repayment of the
        loan. Such reductions may be offered only if the Secretary
        determines the reductions are cost neutral and in the best
        financial interest of the Federal Government. Any increase in
        subsidy costs resulting from such reductions shall be
        completely offset by corresponding savings in funds available
        for the William D. Ford Federal Direct Loan Program in that
        fiscal year from section 1087h of this title and other
        administrative accounts.
        (B) Accountability
          Prior to publishing regulations proposing repayment
        incentives, the Secretary shall ensure the cost neutrality of
        such reductions. The Secretary shall not prescribe such
        regulations in final form unless an official report from the
        Director of the Office of Management and Budget to the
        Secretary and a comparable report from the Director of the
        Congressional Budget Office to the Congress each certify that
        any such reductions will be completely cost neutral. Such
        reports shall be transmitted to the Committee on Labor and
        Human Resources of the Senate and the Committee on Education
        and the Workforce of the House of Representatives not less than
        60 days prior to the publication of regulations proposing such
        reductions.
      (9) Publication
        The Secretary shall determine the applicable rates of interest
      under this subsection after consultation with the Secretary of
      the Treasury and shall publish such rate in the Federal Register
      as soon as practicable after the date of determination.
    (c) Loan fee
      (1) In general
        The Secretary shall charge the borrower of a loan made under
      this part an origination fee of 4.0 percent of the principal
      amount of loan.
      (2) Subsequent reduction
        Paragraph (1) shall be applied to loans made under this part,
      other than Federal Direct Consolidation loans and Federal Direct
      PLUS loans - 
          (A) by substituting "3.0 percent" for "4.0 percent" with
        respect to loans for which the first disbursement of principal
        is made on or after February 8, 2006, and before July 1, 2007;
          (B) by substituting "2.5 percent" for "4.0 percent" with
        respect to loans for which the first disbursement of principal
        is made on or after July 1, 2007, and before July 1, 2008;
          (C) by substituting "2.0 percent" for "4.0 percent" with
        respect to loans for which the first disbursement of principal
        is made on or after July 1, 2008, and before July 1, 2009;
          (D) by substituting "1.5 percent" for "4.0 percent" with
        respect to loans for which the first disbursement of principal
        is made on or after July 1, 2009, and before July 1, 2010; and
          (E) by substituting "1.0 percent" for "4.0 percent" with
        respect to loans for which the first disbursement of principal
        is made on or after July 1, 2010.
    (d) Repayment plans
      (1) Design and selection
        Consistent with criteria established by the Secretary, the
      Secretary shall offer a borrower of a loan made under this part a
      variety of plans for repayment of such loan, including principal
      and interest on the loan. The borrower shall be entitled to
      accelerate, without penalty, repayment on the borrower's loans
      under this part. The borrower may choose - 
          (A) a standard repayment plan, consistent with subsection
        (a)(1) of this section and with section 1078(b)(9)(A)(i) of
        this title;
          (B) a graduated repayment plan, consistent with section
        1078(b)(9)(A)(ii) of this title;
          (C) an extended repayment plan, consistent with section
        1078(b)(9)(A)(v) of this title, except that the borrower shall
        annually repay a minimum amount determined by the Secretary in
        accordance with section 1078(b)(1)(L) of this title; and
          (D) an income contingent repayment plan, with varying annual
        repayment amounts based on the income of the borrower, paid
        over an extended period of time prescribed by the Secretary,
        not to exceed 25 years, except that the plan described in this
        subparagraph shall not be available to the borrower of a
        Federal Direct PLUS loan.
      (2) Selection by Secretary
        If a borrower of a loan made under this part does not select a
      repayment plan described in paragraph (1), the Secretary may
      provide the borrower with a repayment plan described in
      subparagraph (A), (B), or (C) of paragraph (1).
      (3) Changes in selections
        The borrower of a loan made under this part may change the
      borrower's selection of a repayment plan under paragraph (1), or
      the Secretary's selection of a plan for the borrower under
      paragraph (2), as the case may be, under such terms and
      conditions as may be established by the Secretary.
      (4) Alternative repayment plans
        The Secretary may provide, on a case by case basis, an
      alternative repayment plan to a borrower of a loan made under
      this part who demonstrates to the satisfaction of the Secretary
      that the terms and conditions of the repayment plans available
      under paragraph (1) are not adequate to accommodate the
      borrower's exceptional circumstances. In designing such
      alternative repayment plans, the Secretary shall ensure that such
      plans do not exceed the cost to the Federal Government, as
      determined on the basis of the present value of future payments
      by such borrowers, of loans made using the plans available under
      paragraph (1).
      (5) Repayment after default
        The Secretary may require any borrower who has defaulted on a
      loan made under this part to - 
          (A) pay all reasonable collection costs associated with such
        loan; and
          (B) repay the loan pursuant to an income contingent repayment
        plan.
    (e) Income contingent repayment
      (1) Information and procedures
        The Secretary may obtain such information as is reasonably
      necessary regarding the income of a borrower (and the borrower's
      spouse, if applicable) of a loan made under this part that is, or
      may be, repaid pursuant to income contingent repayment, for the
      purpose of determining the annual repayment obligation of the
      borrower. Returns and return information (as defined in section
      6103 of title 26) may be obtained under the preceding sentence
      only to the extent authorized by section 6103(l)(13) of title 26.
      The Secretary shall establish procedures for determining the
      borrower's repayment obligation on that loan for such year, and
      such other procedures as are necessary to implement effectively
      income contingent repayment.
      (2) Repayment based on adjusted gross income
        A repayment schedule for a loan made under this part and repaid
      pursuant to income contingent repayment shall be based on the
      adjusted gross income (as defined in section 62 of title 26) of
      the borrower or, if the borrower is married and files a Federal
      income tax return jointly with the borrower's spouse, on the
      adjusted gross income of the borrower and the borrower's spouse.
      (3) Additional documents
        A borrower who chooses, or is required, to repay a loan made
      under this part pursuant to income contingent repayment, and for
      whom adjusted gross income is unavailable or does not reasonably
      reflect the borrower's current income, shall provide to the
      Secretary other documentation of income satisfactory to the
      Secretary, which documentation the Secretary may use to determine
      an appropriate repayment schedule.
      (4) Repayment schedules
        Income contingent repayment schedules shall be established by
      regulations promulgated by the Secretary and shall require
      payments that vary in relation to the appropriate portion of the
      annual income of the borrower (and the borrower's spouse, if
      applicable) as determined by the Secretary.
      (5) Calculation of balance due
        The balance due on a loan made under this part that is repaid
      pursuant to income contingent repayment shall equal the unpaid
      principal amount of the loan, any accrued interest, and any fees,
      such as late charges, assessed on such loan. The Secretary may
      promulgate regulations limiting the amount of interest that may
      be capitalized on such loan, and the timing of any such
      capitalization.
      (6) Notification to borrowers
        The Secretary shall establish procedures under which a borrower
      of a loan made under this part who chooses or is required to
      repay such loan pursuant to income contingent repayment is
      notified of the terms and conditions of such plan, including
      notification of such borrower - 
          (A) that the Internal Revenue Service will disclose to the
        Secretary tax return information as authorized under section
        6103(l)(13) of title 26; and
          (B) that if a borrower considers that special circumstances,
        such as a loss of employment by the borrower or the borrower's
        spouse, warrant an adjustment in the borrower's loan repayment
        as determined using the information described in subparagraph
        (A), or the alternative documentation described in paragraph
        (3), the borrower may contact the Secretary, who shall
        determine whether such adjustment is appropriate, in accordance
        with criteria established by the Secretary.
    (f) Deferment
      (1) Effect on principal and interest
        A borrower of a loan made under this part who meets the
      requirements described in paragraph (2) shall be eligible for a
      deferment, during which periodic installments of principal need
      not be paid, and interest - 
          (A) shall not accrue, in the case of a - 
            (i) Federal Direct Stafford Loan; or
            (ii) a Federal Direct Consolidation Loan that consolidated
          only Federal Direct Stafford Loans, or a combination of such
          loans and Federal Stafford Loans for which the student
          borrower received an interest subsidy under section 1078 of
          this title; or

          (B) shall accrue and be capitalized or paid by the borrower,
        in the case of a Federal Direct PLUS Loan, a Federal Direct
        Unsubsidized Stafford Loan, or a Federal Direct Consolidation
        Loan not described in subparagraph (A)(ii).
      (2) Eligibility
        A borrower of a loan made under this part shall be eligible for
      a deferment during any period - 
          (A) during which the borrower - 
            (i) is carrying at least one-half the normal full-time work
          load for the course of study that the borrower is pursuing,
          as determined by the eligible institution (as such term is
          defined in section 1085(a) of this title) the borrower is
          attending; or
            (ii) is pursuing a course of study pursuant to a graduate
          fellowship program approved by the Secretary, or pursuant to
          a rehabilitation training program for individuals with
          disabilities approved by the Secretary,

        except that no borrower shall be eligible for a deferment under
        this subparagraph, or a loan made under this part (other than a
        Federal Direct PLUS Loan or a Federal Direct Consolidation
        Loan), while serving in a medical internship or residency
        program;
          (B) not in excess of 3 years during which the borrower is
        seeking and unable to find full-time employment;
          (C) not in excess of 3 years during which the borrower - 
            (i) is serving on active duty during a war or other
          military operation or national emergency; or
            (ii) is performing qualifying National Guard duty during a
          war or other military operation or national emergency; or

          (D) not in excess of 3 years during which the Secretary
        determines, in accordance with regulations prescribed under
        section 1085(o) of this title, that the borrower has
        experienced or will experience an economic hardship.
      (3) "Borrower" defined
        For the purpose of this subsection, the term "borrower" means
      an individual who is a new borrower on the date such individual
      applies for a loan under this part for which the first
      disbursement is made on or after July 1, 1993.
      (4) Deferments for previous part B loan borrowers
        A borrower of a loan made under this part, who at the time such
      individual applies for such loan, has an outstanding balance of
      principal or interest owing on any loan made, insured, or
      guaranteed under part B of this subchapter prior to July 1, 1993,
      shall be eligible for a deferment under section 1077(a)(2)(C) of
      this title or section 1078(b)(1)(M) of this title as such
      sections were in effect on July 22, 1992.
    (g) Federal Direct Consolidation Loans
      A borrower of a loan made under this part may consolidate such
    loan with the loans described in section 1078-3(a)(4) of this
    title. To be eligible for a consolidation loan under this part, a
    borrower shall meet the eligibility criteria set forth in section
    1078-3(a)(3) of this title. The Secretary, upon application for
    such a loan, shall comply with the requirements applicable to a
    lender under section 1078-3(b)(1)(F) of this title.
    (h) Borrower defenses
      Notwithstanding any other provision of State or Federal law, the
    Secretary shall specify in regulations (except as authorized under
    section 1087g(a)(1) of this title) which acts or omissions of an
    institution of higher education a borrower may assert as a defense
    to repayment of a loan made under this part, except that in no
    event may a borrower recover from the Secretary, in any action
    arising from or relating to a loan made under this part, an amount
    in excess of the amount such borrower has repaid on such loan.
    (i) Loan application and promissory note
      The common financial reporting form required in section
    1090(a)(1) of this title shall constitute the application for loans
    made under this part (other than a Federal Direct PLUS loan). The
    Secretary shall develop, print, and distribute to participating
    institutions a standard promissory note and loan disclosure form.
    (j) Loan disbursement
      (1) In general
        Proceeds of loans to students under this part shall be applied
      to the student's account for tuition and fees, and, in the case
      of institutionally owned housing, to room and board. Loan
      proceeds that remain after the application of the previous
      sentence shall be delivered to the borrower by check or other
      means that is payable to and requires the endorsement or other
      certification by such borrower.
      (2) Payment periods
        The Secretary shall establish periods for the payments
      described in paragraph (1) in a manner consistent with payment of
      Federal Pell Grants under subpart 1 of part A of this subchapter.
    (k) Fiscal control and fund accountability
      (1) In general
        (A) An institution shall maintain financial records in a manner
      consistent with records maintained for other programs under this
      subchapter.
        (B) Except as otherwise required by regulations of the
      Secretary, or in a notice under section 1087g(a)(1) of this
      title, an institution may maintain loan funds under this part in
      the same account as other Federal student financial assistance.
      (2) Payments and refunds
        Payments and refunds shall be reconciled in a manner consistent
      with the manner set forth for the submission of a payment summary
      report required of institutions participating in the program
      under subpart 1 of part A of this subchapter, except that nothing
      in this paragraph shall prevent such reconciliations on a monthly
      basis.
      (3) Transaction histories
        All transaction histories under this part shall be maintained
      using the same system designated by the Secretary for the
      provision of Federal Pell Grants under subpart 1 of part A of
      this subchapter.
    (l) Armed Forces student loan interest payment program
      (1) Authority
        Using funds received by transfer to the Secretary under section
      2174 of title 10 for the payment of interest on a loan made under
      this part to a member of the Armed Forces, the Secretary shall
      pay the interest on the loan as due for a period not in excess of
      36 consecutive months. The Secretary may not pay interest on such
      a loan out of any funds other than funds that have been so
      transferred.
      (2) Forbearance
        During the period in which the Secretary is making payments on
      a loan under paragraph (1), the Secretary shall grant the
      borrower forbearance, in the form of a temporary cessation of all
      payments on the loan other than the payments of interest on the
      loan that are made under that paragraph.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 455, as added Pub. L. 99-498, title
    IV, Sec. 404, Oct. 17, 1986, 100 Stat. 1439; amended Pub. L. 102-
    325, title IV, Sec. 451, July 23, 1992, 106 Stat. 572; Pub. L. 103-
    66, title IV, Sec. 4021, Aug. 10, 1993, 107 Stat. 346; Pub. L. 103-
    382, title III, Sec. 359, Oct. 20, 1994, 108 Stat. 3968; Pub. L.
    105-178, title VIII, Sec. 8301(c), June 9, 1998, 112 Stat. 498;
    Pub. L. 105-244, title IV, Secs. 401(g)(6), 452(a)(1), (b), (c),
    Oct. 7, 1998, 112 Stat. 1652, 1715-1717; Pub. L. 106-554, Sec.
    1(a)(1) [title III, Sec. 318(b)], Dec. 21, 2000, 114 Stat. 2763,
    2763A-49; Pub. L. 107-139, Sec. 1(b), (c), Feb. 8, 2002, 116 Stat.
    9; Pub. L. 107-314, div. A, title VI, Sec. 651(c), Dec. 2, 2002,
    116 Stat. 2580; Pub. L. 109-171, title VIII, Secs. 8007(b),
    8008(b), (c)(2), (3), 8009(d), Feb. 8, 2006, 120 Stat. 160, 162-
    164.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 1077(a)(2)(C) and 1078(b)(1)(M) of this title as such
    sections were in effect on July 22, 1992, referred to in subsec.
    (f)(4), means sections 1077(a)(2)(C) and 1078(b)(1)(M) of this
    title prior to being amended generally by sections 414(b) and
    416(e)(1), respectively, of Pub. L. 102-325, title IV, July 23,
    1992, 106 Stat. 513, 519.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(1). Pub. L. 109-171, Sec. 8009(d)(1), inserted
    "1078-3," after "1078-2,".
      Subsec. (a)(2)(C), (D). Pub. L. 109-171, Sec. 8009(d)(2), added
    subpar. (C) and redesignated former subpar. (C) as (D).
      Subsec. (b)(8)(A). Pub. L. 109-171, Sec. 8008(c)(3), inserted "or
    origination fee" after "reductions in the interest rate".
      Subsec. (c). Pub. L. 109-171, Sec. 8008(c)(2), designated
    existing provisions as par. (1), inserted par. (1) heading, and
    added par. (2).
      Subsec. (d)(1)(A) to (C). Pub. L. 109-171, Sec. 8008(b), added
    subpars. (A) to (C) and struck out former subpars. (A) to (C),
    which read as follows:
      "(A) a standard repayment plan, with a fixed annual repayment
    amount paid over a fixed period of time, consistent with subsection
    (a)(1) of this section;
      "(B) an extended repayment plan, with a fixed annual repayment
    amount paid over an extended period of time, except that the
    borrower shall annually repay a minimum amount determined by the
    Secretary in accordance with section 1078(b)(1)(L) of this title;
      "(C) a graduated repayment plan, with annual repayment amounts
    established at 2 or more graduated levels and paid over a fixed or
    extended period of time, except that the borrower's scheduled
    payments shall not be less than 50 percent, nor more than 150
    percent, of what the amortized payment on the amount owed would be
    if the loan were repaid under the standard repayment plan; and".
      Subsec. (f)(2)(C), (D). Pub. L. 109-171, Sec. 8007(b), added
    subpar. (C) and redesignated former subpar. (C) as (D).
      Subsec. (g). Pub. L. 109-171, Sec. 8009(d)(3), substituted "To be
    eligible for a consolidation loan under this part, a borrower shall
    meet the eligibility criteria set forth in section 1078-3(a)(3) of
    this title. The Secretary, upon application for such a loan, shall
    comply with the requirements applicable to a lender under section
    1078-3(b)(1)(F) of this title." for "Loans made under this
    subsection shall be known as 'Federal Direct Consolidation Loans'."
      2002 - Subsec. (b)(6) to (9). Pub. L. 107-139, in par. (6)
    relating to interest rate provision for new loans substituted
    "2006" for "2003" in heading and "July 1, 2006," for "July 1,
    2003," wherever appearing in text, added par. (7), redesignated
    former par. (7) as (8), and redesignated par. (6) relating to
    publication of rate in Federal Register as (9).
      Subsec. (l). Pub. L. 107-314 added subsec. (l).
      2000 - Subsec. (b)(4)(A). Pub. L. 106-554 amended subpar. (A)
    generally. Prior to amendment, subpar. (A) read as follows: "For
    Federal Direct PLUS Loans for which the first disbursement is made
    on or after July 1, 1994, the applicable rate of interest shall,
    during any 12-month period beginning on July 1 and ending on June
    30, be determined on the preceding June 1 and be equal to - 
        "(i) the bond equivalent rate of 52-week Treasury bills
      auctioned at final auction held prior to such June 1; plus
        "(ii) 3.1 percent,
    except that such rate shall not exceed 9 percent."
      1998 - Subsec. (b)(5). Pub. L. 105-178, Sec. 8301(c)(2), which
    directed amendment of section 455(b) (20 U.S.C. 1087e(b)) by adding
    par. (5), was executed to this section, which is section 455(b) of
    Pub. L. 89-329, to reflect the probable intent of Congress. Former
    par. (5) redesignated (6).
      Subsec. (b)(6). Pub. L. 105-244, Sec. 452(a)(1), added par. (6)
    relating to interest rate provision for new loans.
      Pub. L. 105-178, Sec. 8301(c)(1), which directed amendment of
    section 455(b) (20 U.S.C. 1087e(b)) by redesignating par. (5) as
    (6), was executed to this section, which is section 455(b) of Pub.
    L. 89-329, to reflect the probable intent of Congress.
      Subsec. (b)(7). Pub. L. 105-244, Sec. 452(b), added par. (7).
      Subsec. (g). Pub. L. 105-244, Sec. 452(c), struck out "only under
    such terms and conditions as the Secretary shall establish pursuant
    to section 1087g(a)(1) of this title or regulations promulgated
    under this part" after "section 1078-3(a)(4) of this title".
      Subsecs. (j)(2), (k)(3). Pub. L. 105-244, Sec. 401(g)(6),
    substituted "Federal Pell Grants" for "basic grants".
      1994 - Subsec. (f)(3), (4). Pub. L. 103-382 added pars. (3) and
    (4).
      1993 - Pub. L. 103-66 amended section generally, substituting
    provisions relating to terms and conditions of loans for former
    provisions relating to withdrawal and termination procedures.
      1992 - Pub. L. 102-325 amended section generally, substituting
    provisions relating to withdrawal and termination procedures for
    former provisions relating to feasibility study.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.
      Amendment by section 8007(b) of Pub. L. 109-171 applicable with
    respect to loans for which the first disbursement is made on or
    after July 1, 2001, see section 8007(f) of Pub. L. 109-171, set out
    as a note under section 1078 of this title.

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-314 applicable with respect to interest,
    and any special allowance under section 1087-1 of this title, that
    accrue for months beginning on or after Oct. 1, 2003, on student
    loans described in section 2174(c) of Title 10, Armed Forces, that
    were made before, on, or after such date to members of the Armed
    Forces who are on active duty (as defined in section 101(d) of
    Title 10) on or after that date, see section 651(e) of Pub. L. 107-
    314, set out as an Effective Date note under section 2174 of Title
    10.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by sections 401(g)(6) and 452(b), (c) of Pub. L. 105-
    244 effective Oct. 1, 1998, except as otherwise provided in Pub.
    L. 105-244, see section 3 of Pub. L. 105-244, set out as a note
    under section 1001 of this title.
      Pub. L. 105-244, title IV, Sec. 452(d), Oct. 7, 1998, 112 Stat.
    1717, provided that: "The amendments made by subsection (a)
    [amending this section] shall apply with respect to any loan made
    under part D of title IV of the Higher Education Act of 1965 [this
    part] for which the first disbursement is made on or after October
    1, 1998, and before July 1, 2003, except that such amendments shall
    apply with respect to a Federal Direct Consolidation Loan for which
    the application is received on or after October 1, 1998, and before
    July 1, 2003."

                     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.

                      CONSTRUCTION OF 2006 AMENDMENT                  
      Nothing in amendment by section 8007(b) of Pub. L. 109-171 to be
    construed to authorize any refunding of any repayment of a loan,
    see section 8007(e) of Pub. L. 109-171, set out as a note under
    section 1078 of this title.

     LIMITATION ON CONSOLIDATION LOANS DURING TEMPORARY INTEREST RATE 
      Pub. L. 105-244, title IV, Sec. 452(a)(2), Oct. 7, 1998, 112
    Stat. 1716, provided that: "Notwithstanding section 455(g) of the
    Higher Education Act of 1965 [subsec. (g) of this section], a
    borrower who is enrolled or accepted for enrollment in an
    institution of higher education may not consolidate loans under
    such section during the period beginning October 1, 1998, and
    ending February 1, 1999, unless the borrower certifies that the
    borrower has no outstanding loans made, insured, or guaranteed
    under title IV of such Act [20 U.S.C. 1070 et seq.; 42 U.S.C. 2751
    et seq.] other than loans made under part D of such title [this
    part]."

-End-



-CITE-
    20 USC Sec. 1087f                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part C - William D. Ford Federal Direct Loan Program

-HEAD-
    Sec. 1087f. Contracts

-STATUTE-
    (a) Contracts for supplies and services
      (1) In general
        The Secretary shall, to the extent practicable, award contracts
      for origination, servicing, and collection described in
      subsection (b) of this section. In awarding such contracts, the
      Secretary shall ensure that such services and supplies are
      provided at competitive prices.
      (2) Entities
        The entities with which the Secretary may enter into contracts
      shall include only entities which the Secretary determines are
      qualified to provide such services and supplies and will comply
      with the procedures applicable to the award of such contracts. In
      the case of awarding contracts for the origination, servicing,
      and collection of loans under this part, the Secretary shall
      enter into contracts only with entities that have extensive and
      relevant experience and demonstrated effectiveness. The entities
      with which the Secretary may enter into such contracts shall
      include, where practicable, agencies with agreements with the
      Secretary under sections 1078(b) and (c) of this title, if such
      agencies meet the qualifications as determined by the Secretary
      under this subsection and if those agencies have such experience
      and demonstrated effectiveness. In awarding contracts to such
      State agencies, the Secretary shall, to the extent practicable
      and consistent with the purposes of this part, give special
      consideration to State agencies with a history of high quality
      performance to perform services for institutions of higher
      education within their State.
      (3) Rule of construction
        Nothing in this section shall be construed as a limitation of
      the authority of any State agency to enter into an agreement for
      the purposes of this section as a member of a consortium of State
      agencies.
    (b) Contracts for origination, servicing, and data systems
      The Secretary may enter into contracts for - 
        (1) the alternative origination of loans to students attending
      institutions of higher education with agreements to participate
      in the program under this part (or their parents), if such
      institutions do not have agreements with the Secretary under
      section 1087d(b) of this title;
        (2) the servicing and collection of loans made under this part;
        (3) the establishment and operation of 1 or more data systems
      for the maintenance of records on all loans made under this part;
      and
        (4) such other aspects of the direct student loan program as
      the Secretary determines are necessary to ensure the successful
      operation of the program.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 456, as added Pub. L. 102-325,
    title IV, Sec. 451, July 23, 1992, 106 Stat. 572; amended Pub. L.
    103-66, title IV, Sec. 4021, Aug. 10, 1993, 107 Stat. 352; Pub. L.
    105-244, title IV, Sec. 453, Oct. 7, 1998, 112 Stat. 1717.)


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (b)(3). Pub. L. 105-244, Sec. 453(1), inserted
    "and" after semicolon.
      Subsec. (b)(4), (5). Pub. L. 105-244, Sec. 453(2), (3),
    redesignated par. (5) as (4) and struck out former par. (4) which
    read as follows: "services to assist in the orderly transition from
    the loan programs under part B of this subchapter to the direct
    student loan program under this part; and".
      1993 - Pub. L. 103-66 amended section generally, substituting
    provisions relating to contracts for former provisions relating to
    terms and conditions.

                     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                          
      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.

-End-



-CITE-
    20 USC Sec. 1087g                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part C - William D. Ford Federal Direct Loan Program

-HEAD-
    Sec. 1087g. Regulatory activities

-STATUTE-
    (a) Notice in lieu of regulations for first year of program
      (1) Notice in lieu of regulations for first year of program
        The Secretary shall publish in the Federal Register whatever
      standards, criteria, and procedures, consistent with the
      provisions of this part, the Secretary, in consultation with
      members of the higher education community, determines are
      reasonable and necessary to the successful implementation of the
      first year of the direct student loan program authorized by this
      part. Section 1232 (!1) of this title shall not apply to the
      publication of such standards, criteria, and procedures.

      (2) Negotiated rulemaking
        Beginning with academic year 1995-1996, all standards,
      criteria, procedures, and regulations implementing this part as
      amended by the Student Loan Reform Act of 1993 shall, to the
      extent practicable, be subject to negotiated rulemaking,
      including all such standards, criteria, procedures, and
      regulations promulgated from August 10, 1993.
    (b) Closing date for applications from institutions
      The Secretary shall establish a date not later than October 1,
    1993, as the closing date for receiving applications from
    institutions of higher education desiring to participate in the
    first year of the direct loan program under this part.
    (c) Publication of list of participating institutions
      Not later than January 1, 1994, the Secretary shall publish in
    the Federal Register a list of the institutions of higher education
    selected to participate in the first year of the direct loan
    program under this part.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 457, as added Pub. L. 102-325,
    title IV, Sec. 451, July 23, 1992, 106 Stat. 572; amended Pub. L.
    103-66, title IV, Sec. 4021, Aug. 10, 1993, 107 Stat. 352.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1232 of this title, referred to in subsec. (a)(1), was in
    the original a reference to section 431 of the General Education
    Provisions Act. Sections 422 and 431 of that Act were renumbered as
    sections 431 and 437, respectively, by Pub. L. 103-382, title II,
    Sec. 212(b)(1), Oct. 20, 1994, 108 Stat. 3913, and are classified
    to sections 1231a and 1232, respectively, of this title.
      The Student Loan Reform Act of 1993, referred to in subsec.
    (a)(2), is subtitle A (Secs. 4011-4047) of title IV of Pub. L. 103-
    66, Aug. 10, 1993, 106 Stat. 341. For complete classification of
    this Act to the Code, see Short Title of 1993 Amendments note set
    out under section 1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      1993 - Pub. L. 103-66 amended section generally, substituting
    provisions relating to regulatory activities for former provisions
    relating to loan collection functions under competitive procurement
    contracts.

                              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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1087h                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part C - William D. Ford Federal Direct Loan Program

-HEAD-
    Sec. 1087h. Funds for administrative expenses

-STATUTE-
    (a) Administrative expenses
      (1) Mandatory funds for fiscal year 2006
        For fiscal year 2006, there shall be available to the
      Secretary, from funds not otherwise appropriated, funds to be
      obligated for - 
          (A) administrative costs under this part and part B,
        including the costs of the direct student loan programs under
        this part; and
          (B) account maintenance fees payable to guaranty agencies
        under part B and calculated in accordance with subsections (b)
        and (c),

      not to exceed (from such funds not otherwise appropriated)
      $820,000,000 in fiscal year 2006.
      (2) Authorization for administrative costs beginning in fiscal
        years 2007 through 2011
        For each of the fiscal years 2007 through 2011, there are
      authorized to be appropriated such sums as may be necessary for
      administrative costs under this part and part B, including the
      costs of the direct student loan programs under this part.
      (3) Continuing mandatory funds for account maintenance fees
        For each of the fiscal years 2007 through 2011, there shall be
      available to the Secretary, from funds not otherwise
      appropriated, funds to be obligated for account maintenance fees
      payable to guaranty agencies under part B and calculated in
      accordance with subsection (b).
      (4) Account maintenance fees
        Account maintenance fees under paragraph (3) shall be paid
      quarterly and deposited in the Agency Operating Fund established
      under section 1072b of this title.
      (5) Carryover
        The Secretary may carry over funds made available under this
      section to a subsequent fiscal year.
    (b) Calculation basis
      Account maintenance fees payable to guaranty agencies under
    subsection (a)(3) shall be calculated on the basis of 0.10 percent
    of the original principal amount of outstanding loans on which
    insurance was issued under part B.
    (c) Budget justification
      No funds may be expended under this section unless the Secretary
    includes in the Department of Education's annual budget
    justification to Congress a detailed description of the specific
    activities for which the funds made available by this section have
    been used in the prior and current years (if applicable), the
    activities and costs planned for the budget year, and the
    projection of activities and costs for each remaining year for
    which administrative expenses under this section are made
    available.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 458, as added Pub. L. 102-325,
    title IV, Sec. 451, July 23, 1992, 106 Stat. 573; amended Pub. L.
    103-66, title IV, Sec. 4021, Aug. 10, 1993, 107 Stat. 353; Pub. L.
    104-19, title I, Sec. 601, July 27, 1995, 109 Stat. 219; Pub. L.
    105-33, title VI, Sec. 6103, Aug. 5, 1997, 111 Stat. 652; Pub. L.
    105-78, title VI, Sec. 609(l), Nov. 13, 1997, 111 Stat. 1524; Pub.
    L. 105-244, title IV, Sec. 454, Oct. 7, 1998, 112 Stat. 1717; Pub.
    L. 109-171, title VIII, Sec. 8015, Feb. 8, 2006, 120 Stat. 172;
    Pub. L. 109-292, Sec. 5, Sept. 30, 2006, 120 Stat. 1341.)


-MISC1-
                             PRIOR PROVISIONS                         
      Prior sections 1087i and 1087j were omitted in the general
    revision of this part by Pub. L. 103-66.
      Section 1087i, Pub. L. 89-329, title IV, Sec. 459, as added Pub.
    L. 102-325, title IV, Sec. 451, July 23, 1992, 106 Stat. 575,
    related to schedule of regulatory activities by Secretary under
    Federal direct loan demonstration program.
      Section 1087j, Pub. L. 89-329, title IV, Sec. 459A, as added Pub.
    L. 102-325, title IV, Sec. 451, July 23, 1992, 106 Stat. 575,
    related to funds for administrative expenses under Federal direct
    loan demonstration program.

                                AMENDMENTS                            
      2006 - Pub. L. 109-171 reenacted section catchline without change
    and amended text generally. Prior to amendment, text consisted of
    subsecs. (a) to (d) relating to administrative expenses,
    calculation basis for account maintenance fees payable to guaranty
    agencies, special rules relating to caps on account maintenance
    fees and insufficient funding, and budget justification for funds
    expended, respectively.
      Subsec. (b). Pub. L. 109-292 substituted "shall be calculated on"
    for "shall not exceed".
      1998 - Subsec. (a). Pub. L. 105-244, Sec. 454(1), amended heading
    and text of subsec. (a) generally. Prior to amendment, subsec. (a)
    related to availability of funds for administrative costs and cost
    allowances.
      Subsec. (b). Pub. L. 105-244, Sec. 454(2), amended heading and
    text of subsec. (b) generally. Prior to amendment, text read as
    follows: "Funds made available under subsection (a) of this section
    shall remain available until expended."
      Subsec. (c). Pub. L. 105-244, Sec. 454(5), added subsec. (c).
    Former subsec. (c) redesignated (d).
      Subsec. (d). Pub. L. 105-244, Sec. 454(4), redesignated subsec.
    (c) as (d).
      Pub. L. 105-244, Sec. 454(3), struck out heading and text of
    subsec. (d). Text read as follows: "In the event the Secretary
    finds it necessary to use the authority provided to the Secretary
    under subsection (a) of this section to draw funds for
    administrative expenses from a future year's funds, no funds may be
    expended under this section unless the Secretary immediately
    notifies the Committees on Appropriations of the Senate and of the
    House of Representatives, and the Labor and Human Resources
    Committee of the Senate and the Education and Labor Committee of
    the House of Representatives, of such action and explain the
    reasons for such action."
      1997 - Subsec. (a). Pub. L. 105-33 amended heading and text of
    subsec. (a) generally. Prior to amendment, text read as follows:
    "Each fiscal year, there shall be available to the Secretary of
    Education from funds available pursuant to section 1072(g) of this
    title and from funds not otherwise appropriated, funds to be
    obligated for administrative costs under this part, including the
    costs of the transition from the loan programs under part B of this
    subchapter to the direct student loan programs under this part
    (including the costs of annually assessing the program under this
    part and the progress of the transition) and transition support
    (including administrative costs) for the expenses of guaranty
    agencies in servicing outstanding loans in their portfolios and in
    guaranteeing new loans, not to exceed (from such funds not
    otherwise appropriated) $260,000,000 in fiscal year 1994,
    $284,000,000 in fiscal year 1995, $550,000,000 in fiscal year 1996,
    $595,000,000 in fiscal year 1997, and $750,000,000 in fiscal year
    1998. If in any fiscal year the Secretary determines that
    additional funds for administrative expenses are needed as a result
    of such transition or the expansion of the direct student loan
    programs under this part, the Secretary is authorized to use funds
    available under this section for a subsequent fiscal year for such
    expenses, except that the total expenditures by the Secretary (from
    such funds not otherwise appropriated) shall not exceed
    $2,439,000,000 in fiscal years 1994 through 1998. The Secretary is
    also authorized to carry over funds available under this section to
    a subsequent fiscal year."
      Subsec. (a)(1). Pub. L. 105-78 substituted "$507,000,000" for
    "$532,000,000" in closing provisions.
      1995 - Subsec. (a). Pub. L. 104-19 substituted "$284,000,000 in
    fiscal year 1995" for "$345,000,000 in fiscal year 1995" and
    "$2,439,000,000 in fiscal years 1994 through 1998" for
    "$2,500,000,000 in fiscal years 1994 through 1998".
      1993 - Pub. L. 103-66 amended section generally, substituting
    provisions relating to funds for administrative expenses for former
    provisions relating to reports.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 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                          
      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.

                               CONSTRUCTION                           
      Section 609(m) of Pub. L. 105-78 provided that: "Nothing in this
    Act [see Tables for classification] or an amendment made by this
    Act shall be construed to prohibit the Secretary of Education from
    using funds that are returned or otherwise recovered by the
    Secretary under section 422(g) of the Higher Education Act of 1965
    (20 U.S.C. 1072(g)) including the balances of returned reserve
    funds, formerly held by the Higher Education Assistance Foundation,
    that are currently held in Higher Education Assistance Foundation
    Claims Reserves, Treasury account number 91X6192, for expenditure
    for expenses pursuant to section 458 of such Act (20 U.S.C.
    1087h)."

    USE OF FUNDS FOR ADMINISTRATIVE EXPENSES OF WILLIAM D. FORD DIRECT
                          LOAN PROGRAM PROHIBITED
      Pub. L. 104-208, div. A, title I, Sec. 101(e) [title III, Sec.
    304], Sept. 30, 1996, 110 Stat. 3009-233, 3009-261, provided in
    part that: "Notwithstanding section 458 of the Higher Education Act
    [of 1965] [20 U.S.C. 1087h], the Secretary may not use funds
    available under that section or any other section for subsequent
    fiscal years for administrative expenses of the William D. Ford
    Direct Loan Program."
      Similar provisions were contained in the following prior
    appropriation act:
      Pub. L. 104-134, title I, Sec. 101(d) [title III, Sec. 305], Apr.
    26, 1996, 110 Stat. 1321-211, 1321-236; renumbered title I, Pub. L.
    104-140, Sec. 1(a), May 2, 1996, 110 Stat. 1327.

-End-



-CITE-
    20 USC Sec. 1087i                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part C - William D. Ford Federal Direct Loan Program

-HEAD-
    Sec. 1087i. Authority to sell loans

-STATUTE-
      The Secretary, in consultation with the Secretary of the
    Treasury, is authorized to sell loans made under this part on such
    terms as the Secretary determines are in the best interest of the
    United States, except that any such sale shall not result in any
    cost to the Federal Government. Notwithstanding any other provision
    of law, the proceeds of any such sale may be used by the Secretary
    to offer reductions in the interest rate paid by a borrower of a
    loan made under this part as the Secretary determines appropriate
    to encourage on-time repayment in accordance with section
    1087e(b)(7) of this title. Such reductions may be offered only if
    the Secretary determines the reductions are in the best financial
    interests of the Federal Government.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 459, as added Pub. L. 105-244,
    title IV, Sec. 455, Oct. 7, 1998, 112 Stat. 1718.)


-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.

-End-



-CITE-
    20 USC Sec. 1087j                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part C - William D. Ford Federal Direct Loan Program

-HEAD-
    Sec. 1087j. Loan cancellation for teachers

-STATUTE-
    (a) Statement of purpose
      It is the purpose of this section to encourage individuals to
    enter and continue in the teaching profession.
    (b) Program authorized
      (1) In general
        The Secretary shall carry out a program of canceling the
      obligation to repay a qualified loan amount in accordance with
      subsection (c) of this section for Federal Direct Stafford Loans
      and Federal Direct Unsubsidized Stafford Loans made under this
      part for any new borrower on or after October 1, 1998, who - 
          (A) has been employed as a full-time teacher for 5
        consecutive complete school years - 
            (i) in a school that qualifies under section
          1087ee(a)(2)(A) of this title for loan cancellation for
          Perkins loan recipients who teach in such schools; and
            (ii) if employed as an elementary school or secondary
          school teacher, is highly qualified as defined in section
          7801 of this title, or meets the requirements of subsection
          (g)(3); and

          (B) is not in default on a loan for which the borrower seeks
        forgiveness.
      (2) Special rule
        No borrower may obtain a reduction of loan obligations under
      both this section and section 1078-10 of this title.
    (c) Qualified loan amounts
      (1) In general
        The Secretary shall cancel not more than $5,000 in the
      aggregate of the loan obligation on a Federal Direct Stafford
      Loan or a Federal Direct Unsubsidized Stafford Loan that is
      outstanding after the completion of the fifth complete school
      year of teaching described in subsection (b)(1)(A) of this
      section.
      (2) Treatment of consolidation loans
        A loan amount for a Federal Direct Consolidation Loan may be a
      qualified loan amount for the purposes of this subsection only to
      the extent that such loan amount was used to repay a Federal
      Direct Stafford Loan, a Federal Direct Unsubsidized Stafford
      Loan, or a loan made under section 1078 or 1078-8 of this title,
      for a borrower who meets the requirements of subsection (b) of
      this section, as determined in accordance with regulations
      prescribed by the Secretary.
      (3) Additional amounts for teachers in mathematics, science, or
        special education
        Notwithstanding the amount specified in paragraph (1), the
      aggregate amount that the Secretary shall cancel under this
      section shall be not more than $17,500 in the case of - 
          (A) a secondary school teacher - 
            (i) who meets the requirements of subsection (b)(1) of this
          section; and
            (ii) whose qualifying employment for purposes of such
          subsection is teaching mathematics or science on a full-time
          basis; and

          (B) an elementary school or secondary school teacher - 
            (i) who meets the requirements of subsection (b)(1) of this
          section;
            (ii) whose qualifying employment for purposes of such
          subsection is as a special education teacher whose primary
          responsibility is to provide special education to children
          with disabilities (as those terms are defined in section 1401
          of this title); and
            (iii) who, as certified by the chief administrative officer
          of the public or non-profit private elementary school or
          secondary school in which the borrower is employed, is
          teaching children with disabilities that correspond with the
          borrower's special education training and has demonstrated
          knowledge and teaching skills in the content areas of the
          elementary school or secondary school curriculum that the
          borrower is teaching.
    (d) Regulations
      The Secretary is authorized to issue such regulations as may be
    necessary to carry out the provisions of this section.
    (e) Construction
      Nothing in this section shall be construed to authorize any
    refunding of any canceled loan.
    (f) List
      If the list of schools in which a teacher may perform service
    pursuant to subsection (b) of this section is not available before
    May 1 of any year, the Secretary may use the list for the year
    preceding the year for which the determination is made to make such
    service determination.
    (g) Additional eligibility provisions
      (1) Continued eligibility
        Any teacher who performs service in a school that - 
          (A) meets the requirements of subsection (b)(1)(A) of this
        section in any year during such service; and
          (B) in a subsequent year fails to meet the requirements of
        such subsection, may continue to teach in such school and shall
        be eligible for loan cancellation pursuant to subsection (b) of
        this section.
      (2) Prevention of double benefits
        No borrower may, for the same volunteer service, receive a
      benefit under both this section and subtitle D of title I of the
      National and Community Service Act of 1990 [42 U.S.C. 12601 et
      seq.].
      (3) Private school teachers
        An individual who is employed as a teacher in a private school
      and is exempt from State certification requirements (unless
      otherwise applicable under State law), may, in lieu of the
      requirement of subsection (b)(1)(A)(ii), have such employment
      treated as qualifying employment under this section if such
      individual is permitted to and does satisfy rigorous subject
      knowledge and skills tests by taking competency tests in the
      applicable grade levels and subject areas. For such purposes, the
      competency tests taken by such a private school teacher shall be
      recognized by 5 or more States for the purpose of fulfilling the
      highly qualified teacher requirements under section 7801 of this
      title, and the score achieved by such teacher on each test shall
      equal or exceed the average passing score of those 5 States.
    (h) "Year" defined
      For the purpose of this section, the term "year" where applied to
    service as a teacher means an academic year as defined by the
    Secretary.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 460, as added Pub. L. 105-244,
    title IV, Sec. 456, Oct. 7, 1998, 112 Stat. 1719; Pub. L. 108-409,
    Sec. 3(a)(1)(B), (b)(2), Oct. 30, 2004, 118 Stat. 2300, 2301; Pub.
    L. 109-171, title VIII, Sec. 8013(e)(2), Feb. 8, 2006, 120 Stat.
    167.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National and Community Service Act of 1990, referred to in
    subsec. (g)(2), is Pub. L. 101-610, Nov. 16, 1990, 104 Stat. 3127,
    as amended. Subtitle D of title I of the Act is classified
    generally to division D of subchapter I (Sec. 12601 et seq.) of
    chapter 129 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 12501 of Title 42 and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(1)(A)(ii). Pub. L. 109-171, Sec.
    8013(e)(2)(A), inserted ", or meets the requirements of subsection
    (g)(3)" after "section 7801 of this title".
      Subsec. (g)(3). Pub. L. 109-171, Sec. 8013(e)(2)(B), added par.
    (3).
      2004 - Subsec. (b)(1)(A). Pub. L. 108-409, Sec. 3(a)(1)(B), added
    cl. (ii) and struck out former cls. (ii) and (iii) which read as
    follows:
      "(ii) if employed as a secondary school teacher, is teaching a
    subject area that is relevant to the borrower's academic major as
    certified by the chief administrative officer of the public or non-
    profit private secondary school in which the borrower is employed;
    and
      "(iii) if employed as an elementary school teacher, has
    demonstrated, as certified by the chief administrative officer of
    the public or nonprofit private elementary school in which the
    borrower is employed, knowledge and teaching skills in reading,
    writing, mathematics and other areas of the elementary school
    curriculum; and".
      Subsec. (c)(3). Pub. L. 108-409, Sec. 3(b)(2), added par. (3).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

             EFFECTIVE DATE OF 2004 AMENDMENT; TRANSITION RULE         
      Amendment by section 3(b)(2) of Pub. L. 108-409 applicable only
    with respect to eligible individuals who are new borrowers (as
    defined in section 1003 of this title) on or after Oct. 1, 1998,
    see section 3(b)(3) of Pub. L. 108-409, as amended, set out as a
    note under section 1078-10 of this title.
      For transition rules relating to amendments made by section
    3(a)(1)(B) of Pub. L. 108-409, see section 3(a)(2) of Pub. L. 108-
    409, set out as a note under section 1078-10 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.

-End-


-CITE-
    20 USC Part D - Federal Perkins Loans                       01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part D - Federal Perkins Loans

-HEAD-
                      PART D - FEDERAL PERKINS LOANS                  

-COD-
                               CODIFICATION                           
      This part was added as part E of title IV of Pub. L. 89-329 by
    Pub. L. 92-318, title I, Sec. 137(b), June 23, 1972, 86 Stat. 273,
    and amended by Pub. L. 94-482, Oct. 12, 1976, 90 Stat. 2081; Pub.
    L. 95-43, June 15, 1977, 91 Stat. 213; Pub. L. 95-561, Nov. 1,
    1978, 92 Stat. 2143; Pub. L. 96-49, Aug. 13, 1979, 93 Stat. 351;
    Pub. L. 96-374, Oct. 3, 1980, 94 Stat. 1367; Pub. L. 97-35, Aug.
    13, 1981, 95 Stat. 357; Pub. L. 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. Such part is shown herein, however, as
    having been added by Pub. L. 99-498, title IV, Sec. 405(a), Oct.
    17, 1986, 100 Stat. 1439, without reference to such intervening
    amendments because of the extensive revision of this part by Pub.
    L. 99-498. The letter designation of this part was changed from "E"
    to "D" for codification purposes. See Codification note preceding
    section 1087a of this title.

-End-



-CITE-
    20 USC Sec. 1087aa                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part D - Federal Perkins Loans

-HEAD-
    Sec. 1087aa. Appropriations authorized

-STATUTE-
    (a) Program authority
      The Secretary shall carry out a program of stimulating and
    assisting in the establishment and maintenance of funds at
    institutions of higher education for the making of low-interest
    loans to students in need thereof to pursue their courses of study
    in such institutions or while engaged in programs of study abroad
    approved for credit by such institutions. Loans made under this
    part shall be known as "Federal Perkins Loans".
    (b) Authorization of appropriations
      (1) For the purpose of enabling the Secretary to make
    contributions to student loan funds established under this part,
    there are authorized to be appropriated $250,000,000 for fiscal
    year 1999 and such sums as may be necessary for each of the 4
    succeeding fiscal years.
      (2) In addition to the funds authorized under paragraph (1),
    there are hereby authorized to be appropriated such sums for fiscal
    year 2003 and each of the 5 succeeding fiscal years as may be
    necessary to enable students who have received loans for academic
    years ending prior to October 1, 2003, to continue or complete
    courses of study.
    (c) Use of appropriations
      Any sums appropriated pursuant to subsection (b) of this section
    for any fiscal year shall be available for apportionment pursuant
    to section 1087bb of this title and for payments of Federal capital
    contributions therefrom to institutions of higher education which
    have agreements with the Secretary under section 1087cc of this
    title. Such Federal capital contributions and all contributions
    from such institutions shall be used for the establishment,
    expansion, and maintenance of student loan funds.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 461, as added Pub. L. 99-498, title
    IV, Sec. 405(a), Oct. 17, 1986, 100 Stat. 1439; amended Pub. L. 102-
    325, title IV, Sec. 461(a)(2)-(c), July 23, 1992, 106 Stat. 576;
    Pub. L. 105-244, title IV, Sec. 461, Oct. 7, 1998, 112 Stat. 1720.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087aa, Pub. L. 89-329, title IV, Sec. 461, as
    added Pub. L. 92-318, title I, Sec. 137(b), June 23, 1972, 86 Stat.
    273; amended Pub. L. 94-482, title I, Sec. 130(a), (b), Oct. 12,
    1976, 90 Stat. 2146; Pub. L. 96-49, Sec. 5(d)(1), (2), Aug. 13,
    1979, 93 Stat. 352; Pub. L. 96-374, title IV, Sec. 441, title XIII,
    Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1436, 1503, authorized a
    program to establish and maintain funds at institutions of higher
    education for making low-interest loans to students, prior to the
    general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Subsec. (b)(1). Pub. L. 105-244, Sec. 461(1), substituted
    "1999" for "1993".
      Subsec. (b)(2). Pub. L. 105-244, Sec. 461(2), substituted "2003"
    for "1997" in two places.
      1992 - Subsec. (a). Pub. L. 102-325, Sec. 461(a)(2), (b),
    inserted "or while engaged in programs of study abroad approved for
    credit by such institutions" after "in such institutions" and
    substituted "Federal Perkins Loans" for "Perkins Loans".
      Subsec. (b). Pub. L. 102-325, Sec. 461(c), amended subsec. (b)
    generally. Prior to amendment, subsec. (b) read as follows:
      "(1) For the purpose of enabling the Secretary to make
    contributions to student loan funds established under this part,
    there are authorized to be appropriated $268,000,000 for fiscal
    year 1987 and such sums as may be necessary for each of the 4
    succeeding fiscal years.
      "(2) In addition there are hereby authorized to be appropriated
    such sums for fiscal year 1991 and each of the five succeeding
    fiscal years as may be necessary to enable students who have
    received loans for academic years ending prior to October 1, 1991,
    to continue or complete courses of study."

                     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.

-End-



-CITE-
    20 USC Sec. 1087bb                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part D - Federal Perkins Loans

-HEAD-
    Sec. 1087bb. Allocation of funds

-STATUTE-
    (a) Allocation based on previous allocation
      (1) From the amount appropriated pursuant to section 1087aa(b) of
    this title for each fiscal year, the Secretary shall first allocate
    to each eligible institution an amount equal to - 
        (A) 100 percent of the amount 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),
      multiplied by
        (B) the institution's default penalty, as determined under
      subsection (e) of this section,

    except that if the institution has a cohort default rate in excess
    of the applicable maximum cohort default rate under subsection (f)
    of this section, the institution may not receive an allocation
    under this paragraph.
      (2)(A) From the amount so appropriated, the Secretary shall next
    allocate to each eligible institution that began participation in
    the program under this part 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) 100 percent of the amount received and expended under this
      part 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 part 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 part 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.
      (D) For any fiscal year after a fiscal year in which an
    institution receives an allocation under subparagraph (A), (B), or
    (C), the Secretary shall allocate to such institution an amount
    equal to the product of - 
        (i) the amount determined under subparagraph (A), (B), or (C),
      multiplied by
        (ii) the institution's default penalty, as determined under
      subsection (e) of this section,

    except that if the institution has a cohort default rate in excess
    of the applicable maximum cohort default rate under subsection (f)
    of this section, the institution may not receive an allocation
    under this paragraph.
      (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).
    (b) Allocation of excess based on share of excess eligible amounts
      (1) From the remainder of the amount appropriated pursuant to
    section 1087aa(b) of this title 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) that institution's eligible amount (as determined under
      paragraph (3)), divided by (ii) the sum of the eligible amounts
      of all institutions (as so determined), multiplied by (iii) the
      amount appropriated pursuant to section 1087aa(b) of this title
      for the fiscal year; exceeds
        (B) the amount required to be allocated to that institution
      under subsection (a) of this section,

    except that an eligible institution which has a cohort default rate
    in excess of the applicable maximum cohort default rate under
    subsection (f) of this section may not receive an allocation under
    this paragraph.
      (3) For any eligible institution, the eligible amount of that
    institution is equal to - 
        (A) the amount of the institution's self-help need, as
      determined under subsection (c) of this section; minus
        (B) the institution's anticipated collections; multiplied by
        (C) the institution's default penalty, as determined under
      subsection (e) of this section;

    except that, if the institution has a cohort default rate in excess
    of the applicable maximum cohort default rate under subsection (f)
    of this section, the eligible amount of that institution is zero.
    (c) Determination of institution's self-help need
      (1) The amount of an institution's self-help need is equal to the
    sum of the self-help need of the institution's eligible
    undergraduate students and the self-help need of the institution's
    eligible graduate and professional students.
      (2) To determine the self-help 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 25 percent of the average cost of attendance for
      all undergraduate students;
        (D) multiply the number of eligible dependent students in each
      income category by the lesser of - 
          (i) 25 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;

        (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 the lesser of - 
          (i) 25 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;

        (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) To determine the self-help need of an institution's eligible
    graduate and professional students, the Secretary shall - 
        (A) establish various income categories for graduate and
      professional students;
        (B) establish an expected family contribution for each income
      category of graduate and professional 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) determine the average cost of attendance for all graduate
      and professional students;
        (D) subtract from the average cost of attendance for all
      graduate and professional students (determined under subparagraph
      (C)), the expected family contribution (determined under
      subparagraph (B)) for each income category, except that the
      amount computed by such subtraction for any income category shall
      not be less than zero;
        (E) multiply the amounts determined under subparagraph (D) by
      the number of eligible students in each category;
        (F) add the amounts determined under subparagraph (E) for each
      income category.

      (4)(A) For purposes of paragraphs (2) and (3), the term "average
    cost of attendance" means the average of the attendance costs for
    undergraduate students and for graduate and professional 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 and graduate and professional
    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 and graduate 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) Anticipated collections
      (1) An institution's anticipated collections are equal to the
    amount which was collected during the second year preceding the
    beginning of the award period, multiplied by 1.21.
      (2) The Secretary shall establish an appeals process by which the
    anticipated collections required in paragraph (1) may be waived for
    institutions with low cohort default rates in the program assisted
    under this part.
    (e) Default penalties
      (1) Years preceding fiscal year 2000
        For any fiscal year preceding fiscal year 2000, any institution
      with a cohort default rate that - 
          (A) equals or exceeds 15 percent, shall establish a default
        reduction plan pursuant to regulations prescribed by the
        Secretary, except that such plan shall not be required with
        respect to an institution that has a default rate of less than
        20 percent and that has less than 100 students who have loans
        under this part in such academic year;
          (B) equals or exceeds 20 percent, but is less than 25
        percent, shall have a default penalty of 0.9;
          (C) equals or exceeds 25 percent, but is less than 30
        percent, shall have a default penalty of 0.7; and
          (D) equals or exceeds 30 percent shall have a default penalty
        of zero.
      (2) Years following fiscal year 2000
        For fiscal year 2000 and any succeeding fiscal year, any
      institution with a cohort default rate (as defined under
      subsection (g) of this section) that equals or exceeds 25 percent
      shall have a default penalty of zero.
      (3) Ineligibility
        (A) In general
          For fiscal year 2000 and any succeeding fiscal year, any
        institution with a cohort default rate (as defined in
        subsection (g) of this section) that equals or exceeds 50
        percent for each of the 3 most recent years for which data are
        available shall not be eligible to participate in a program
        under this part for the fiscal year for which the determination
        is made and the 2 succeeding fiscal years, unless, within 30
        days of receiving notification from the Secretary of the loss
        of eligibility under this paragraph, the institution appeals
        the loss of eligibility to the Secretary. The Secretary shall
        issue a decision on any such appeal within 45 days after the
        submission of the appeal. Such decision may permit the
        institution to continue to participate in a program under this
        part if - 
            (i) the institution demonstrates to the satisfaction of the
          Secretary that the calculation of the institution's cohort
          default rate is not accurate, and that recalculation would
          reduce the institution's cohort default rate for any of the 3
          fiscal years below 50 percent; or
            (ii) there are, in the judgment of the Secretary, such a
          small number of borrowers entering repayment that the
          application of this subparagraph would be inequitable.
        (B) Continued participation
          During an appeal under subparagraph (A), the Secretary may
        permit the institution to continue to participate in a program
        under this part.
        (C) Return of funds
          Within 90 days after the date of any termination pursuant to
        subparagraph (A), or the conclusion of any appeal pursuant to
        subparagraph (B), whichever is later, the balance of the
        student loan fund established under this part by the
        institution that is the subject of the termination shall be
        distributed as follows:
            (i) The Secretary shall first be paid an amount which bears
          the same ratio to such balance (as of the date of such
          distribution) as the total amount of Federal capital
          contributions to such fund by the Secretary under this part
          bears to the sum of such Federal capital contributions and
          the capital contributions to such fund made by the
          institution.
            (ii) The remainder of such student loan fund shall be paid
          to the institution.
        (D) Use of returned funds
          Any funds returned to the Secretary under this paragraph
        shall be reallocated to institutions of higher education
        pursuant to subsection (i) of this section.
        (E) Definition
          For the purposes of subparagraph (A), the term "loss of
        eligibility" shall be defined as the mandatory liquidation of
        an institution's student loan fund, and assignment of the
        institution's outstanding loan portfolio to the Secretary.
    (f) Applicable maximum cohort default rate
      (1) Award years prior to 2000
        For award years prior to award year 2000, the applicable
      maximum cohort default rate is 30 percent.
      (2) Award year 2000 and succeeding award years
        For award year 2000 and subsequent years, the applicable
      maximum cohort default rate is 25 percent.
    (g) "Cohort default rate" defined
      (1)(A) The term "cohort default rate" means, for any award year
    in which 30 or more current and former students at the institution
    enter repayment on loans under this part (received for attendance
    at the institution), the percentage of those current and former
    students who enter repayment on such loans (received for attendance
    at that institution) in that award year who default before the end
    of the following award year.
      (B) For any award year in which less than 30 of the institution's
    current and former students enter repayment, the term "cohort
    default rate" means the percentage of such current and former
    students who entered repayment on such loans in any of the three
    most recent award years and who default before the end of the award
    year immediately following the year in which they entered
    repayment.
      (C) A loan on which a payment is made by the institution of
    higher education, its owner, agency, contractor, employee, or any
    other entity or individual affiliated with such institution, in
    order to avoid default by the borrower, is considered as in default
    for the purposes of this subsection.
      (D) In the case of a student who has attended and borrowed at
    more than one school, the student (and his or her subsequent
    repayment or default) is attributed to the school for attendance at
    which the student received the loan that entered repayment in the
    award year.
      (E) In determining the number of students who default before the
    end of such award year, the institution, in calculating the cohort
    default rate, shall exclude - 
        (i) any loan on which the borrower has, after the time periods
      specified in paragraph (2) - 
          (I) voluntarily made 6 consecutive payments;
          (II) voluntarily made all payments currently due;
          (III) repaid in full the amount due on the loan; or
          (IV) received a deferment or forbearance, based on a
        condition that began prior to such time periods;

        (ii) any loan which has, after the time periods specified in
      paragraph (2), been rehabilitated or canceled; and
        (iii) any other loan that the Secretary determines should be
      excluded from such determination.

      (F) The Secretary shall prescribe regulations designed to prevent
    an institution from evading the application to that institution of
    a cohort default rate determination under this subsection through
    the use of such measures as branching, consolidation, change of
    ownership or control or other means as determined by the Secretary.
      (2) For purposes of calculating the cohort default rate under
    this subsection, a loan shall be considered to be in default - 
        (A) 240 days (in the case of a loan repayable monthly), or
        (B) 270 days (in the case of a loan repayable quarterly),

    after the borrower fails to make an installment payment when due or
    to comply with other terms of the promissory note.
    (h) Filing deadlines
      The Secretary shall, from time to time, set dates before which
    institutions must file applications for allocations under this
    part.
    (i) Reallocation of excess allocations
      (1) In general
        (A) If an institution of higher education returns to the
      Secretary any portion of the sums allocated to such institution
      under this section for any fiscal year, the Secretary shall
      reallocate 80 percent of such returned portions to participating
      institutions in an amount not to exceed such participating
      institution's excess eligible amounts as determined under
      paragraph (2).
        (B) For the purpose of this subsection, the term "participating
      institution" means an institution of higher education that - 
          (i) was a participant in the program assisted under this part
        in fiscal year 1999; and
          (ii) did not receive an allocation under subsection (a) of
        this section in the fiscal year for which the reallocation
        determination is made.
      (2) Excess eligible amount
        For any participating institution, the excess eligible amount
      is the amount, if any, by which - 
          (A)(i) that institution's eligible amount (as determined
        under subsection (b)(3) of this section), divided by (ii) the
        sum of the eligible amounts of all participating institutions
        (as determined under paragraph (3)), multiplied by (iii) the
        amount of funds available for reallocation under this
        subsection; exceeds
          (B) the amount required to be allocated to that institution
        under subsection (b) of this section.
      (3) Remainder
        The Secretary shall reallocate the remainder of such returned
      portions in accordance with regulations of the Secretary.
      (4) Allocation reductions
        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 it is
      contrary to the interest of the program.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 462, as added Pub. L. 99-498, title
    IV, Sec. 405(a), Oct. 17, 1986, 100 Stat. 1440; amended Pub. L. 100-
    50, Sec. 13(a)-(d), June 3, 1987, 101 Stat. 348; Pub. L. 102-325,
    title IV, Sec. 462, July 23, 1992, 106 Stat. 576; Pub. L. 103-208,
    Sec. 2(f)(1)-(4), Dec. 20, 1993, 107 Stat. 2470, 2471; Pub. L. 105-
    244, title IV, Sec. 462(a)(1), (2), (b)-(e), Oct. 7, 1998, 112
    Stat. 1720-1723.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087bb, Pub. L. 89-329, title IV, Sec. 462, as
    added Pub. L. 92-318, title I, Sec. 137(b), June 23, 1972, 86 Stat.
    273; amended Pub. L. 96-374, title IV, Sec. 448(a), title XIII,
    Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1443, 1503, provided for
    apportionment of appropriations among States, prior to the general
    revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Subsec. (a)(1). Pub. L. 105-244, Sec. 462(e)(1), inserted
    "cohort" before "default" in two places in concluding provisions.
      Pub. L. 105-244, Sec. 462(a)(2)(A)(ii), substituted "subsection
    (f)" for "subsection (g)" in concluding provisions.
      Subsec. (a)(1)(A). Pub. L. 105-244, Sec. 462(a)(1)(A), which
    directed the substitution of "the amount 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 "the amount of the Federal capital contribution
    allocated to such institution under this part for fiscal year
    1985," was executed by making the substitution for text which read
    "amount of Federal capital" rather than "amount of the Federal
    capital", to reflect the probable intent of Congress.
      Subsec. (a)(1)(B). Pub. L. 105-244, Sec. 462(a)(2)(A)(i),
    substituted "subsection (e)" for "subsection (f)".
      Subsec. (a)(2)(A), (B). Pub. L. 105-244, Sec. 462(a)(1)(B)(i),
    substituted "1999" for "1985" in introductory provisions.
      Subsec. (a)(2)(C)(i). Pub. L. 105-244, Sec. 462(a)(1)(B)(ii),
    substituted "2000" for "1986".
      Subsec. (a)(2)(D). Pub. L. 105-244, Sec. 462(e)(1), inserted
    "cohort" before "default" in two places in concluding provisions.
      Pub. L. 105-244, Sec. 462(a)(2)(A)(iv), substituted "subsection
    (f)" for "subsection (g)" in concluding provisions.
      Subsec. (a)(2)(D)(ii). Pub. L. 105-244, Sec. 462(a)(2)(A)(iii),
    substituted "subsection (e)" for "subsection (f)".
      Subsec. (b). Pub. L. 105-244, Sec. 462(a)(2)(H), redesignated
    subsec. (c) as (b).
      Pub. L. 105-244, Sec. 462(a)(2)(B), struck out heading and text
    of subsec. (b). Text read as follows: "From one-quarter of the
    remainder of the amount appropriated pursuant to section 1087aa(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 - 
        "(1) the amount the eligible institution receives for such
      fiscal year under subsection (a) of this section, bears to
        "(2) the amount all such institutions receive under such
      subsection (a) of this section."
      Subsec. (b)(2). Pub. L. 105-244, Sec. 462(e)(2), inserted
    "cohort" before "default" in two places in concluding provisions.
      Subsec. (b)(3). Pub. L. 105-244, Sec. 462(e)(2), inserted
    "cohort" before "default" in two places in concluding provisions.
      Subsec. (c). Pub. L. 105-244, Sec. 462(a)(2)(H), redesignated
    subsec. (d) as (c). Former subsec. (c) redesignated (b).
      Subsec. (c)(1). Pub. L. 105-244, Sec. 462(a)(2)(C), substituted
    "the remainder" for "three-quarters of the remainder".
      Subsec. (c)(2). Pub. L. 105-244, Sec. 462(a)(2)(D), substituted
    "subsection (f)" for "subsection (g)" in concluding provisions.
      Subsec. (c)(3). Pub. L. 105-244, Sec. 462(b), in introductory
    provisions, struck out "the Secretary, for academic year 1988-1989,
    shall use the procedures employed for academic year 1986-1987, and,
    for any subsequent academic years," after "professional students,".
      Pub. L. 105-244, Sec. 462(a)(2)(E)(iii), substituted "subsection
    (f)" for "subsection (g)" in concluding provisions.
      Subsec. (c)(3)(A). Pub. L. 105-244, Sec. 462(a)(2)(E)(i),
    substituted "subsection (c)" for "subsection (d)".
      Subsec. (c)(3)(C). Pub. L. 105-244, Sec. 462(a)(2)(E)(ii),
    substituted "subsection (e)" for "subsection (f)".
      Subsec. (d). Pub. L. 105-244, Sec. 462(a)(2)(H), redesignated
    subsec. (e) as (d). Former subsec. (d) redesignated (c).
      Subsec. (d)(2). Pub. L. 105-244, Sec. 462(e)(3), inserted
    "cohort" before "default".
      Subsec. (e). Pub. L. 105-244, Sec. 462(c), amended heading and
    text of subsec. (e) generally. Prior to amendment, text read as
    follows:
      "(1) For any fiscal year prior to fiscal year 1994, any
    institution which has a default rate which equals or exceeds 7.5
    percent but does not exceed the maximum default rate applicable to
    the award year under subsection (g) of this section, the
    institution's default penalty is a percentage equal to the
    complement of such default rate. For any institution which has a
    default rate that does not exceed 7.5 percent, the institution's
    default penalty is equal to one.
      "(2) For fiscal year 1994 and any succeeding fiscal year, any
    institution with a cohort default rate (as defined under subsection
    (h) of this section) which - 
        "(A) equals or exceeds 15 percent, shall establish a default
      reduction plan pursuant to regulations issued by the Secretary;
        "(B) equals or exceeds 20 percent, but is less than 25 percent,
      shall have a default penalty of 0.9;
        "(C) equals or exceeds 25 percent, but is less than 30 percent,
      shall have a default penalty of 0.7; and
        "(D) equals or exceeds 30 percent shall have a default penalty
      of zero."
      Pub. L. 105-244, Sec. 462(a)(2)(H), redesignated subsec. (f) as
    (e). Former subsec. (e) redesignated (d).
      Subsec. (f). Pub. L. 105-244, Sec. 462(c), amended heading and
    text of subsec. (f) generally. Prior to amendment, text read as
    follows:
      "(1) For award years 1992 and 1993, the applicable maximum
    default rate is 15 percent.
      "(2) For award year 1994 and subsequent years, the maximum cohort
    default rate is 30 percent."
      Pub. L. 105-244, Sec. 462(a)(2)(H), redesignated subsec. (g) as
    (f). Former subsec. (f) redesignated (e).
      Subsec. (g). Pub. L. 105-244, Sec. 462(d)(1), inserted heading
    and struck out former heading.
      Pub. L. 105-244, Sec. 462(a)(2)(H), redesignated subsec. (h) as
    (g). Former subsec. (g) redesignated (f).
      Subsec. (g)(1). Pub. L. 105-244, Sec. 462(d)(1), (2),
    redesignated par. (3) as (1), substituted "The term" for "For award
    year 1994 and any succeeding award year, the term" in subpar. (A),
    and struck out former par. (1) which read as follows: "For any
    award year prior to award year 1994, for the purpose of this
    section, the default rate is computed by dividing - 
        "(A) the total principal amount of defaulted loans; by
        "(B) the total principal amount of loans made under this part,
      less the principal amount of all loans made to borrowers who are
      eligible for deferment under section 1087dd(c)(2)(A)(i) of this
      title or are in a grace period preceding repayment."
      Subsec. (g)(1)(B). Pub. L. 105-244, Sec. 462(d)(3)(A), (B),
    redesignated subpar. (C) as (B) and struck out former subpar. (B)
    which read as follows: "In determining the number of students who
    default before the end of such award year, the Secretary shall, in
    calculating the cohort default rate, exclude any loans which, due
    to improper servicing or collection, would result in an inaccurate
    or incomplete calculation of the cohort default rate."
      Subsec. (g)(1)(C), (D). Pub. L. 105-244, Sec. 462(d)(3)(B),
    redesignated subpars. (D) and (F) as (C) and (D), respectively.
    Former subpar. (C) redesignated (B).
      Subsec. (g)(1)(E). Pub. L. 105-244, Sec. 462(d)(3)(A), (C), added
    subpar. (E) and struck out former subpar. (E) which read as
    follows: "Any loan that is in default but on which the borrower has
    made satisfactory arrangements to resume payment or any loan which
    has been rehabilitated before the end of such following award year
    is not considered as in default for purposes of this subsection."
      Subsec. (g)(1)(F). Pub. L. 105-244, Sec. 462(d)(3)(B), (e)(4),
    redesignated subpar. (G) as (F) and inserted "cohort" before
    "default". Former subpar. (F) redesignated (D).
      Subsec. (g)(1)(G). Pub. L. 105-244, Sec. 462(d)(3)(B),
    redesignated subpar. (G) as (F).
      Subsec. (g)(2). Pub. L. 105-244, Sec. 462(d)(4), added par. (2).
      Pub. L. 105-244, Sec. 462(d)(1), struck out par. (2) which read
    as follows: "For the purpose of paragraph (1)(A), the total
    principal amount of defaulted loans is equal to the total amount
    borrowed under loans that have reached repayment status and that
    are in default, minus - 
        "(A) amounts that have been repaid or cancelled on such loans;
        "(B) loans discharged in bankruptcy;
        "(C) loans referred or assigned to the Secretary for collection
      under paragraph (5)(A), (5)(B)(i), or (6) of section 1087cc(a) of
      this title; and
        "(D) loans that are in default but on which the borrowers have
      made satisfactory arrangements to resume payment."
      Subsec. (g)(3). Pub. L. 105-244, Sec. 462(d)(2), redesignated
    par. (3) as (1).
      Subsec. (g)(4). Pub. L. 105-244, Sec. 462(d)(4), struck out par.
    (4) which read as follows: "A loan shall be considered to be in
    default - 
        "(A) 240 days (in the case of a loan repayable monthly), or
        "(B) 270 days (in the case of a loan repayable quarterly),
      after the borrower fails to make an installment payment when due
      or to comply with other terms of the promissory note,
    after the borrower fails to make an installment payment when due or
    to comply with other terms of the promissory note."
      Subsecs. (h), (i). Pub. L. 105-244, Sec. 462(a)(2)(H),
    redesignated subsecs. (i) and (j) as (h) and (i), respectively.
    Former subsec. (h) redesignated (g).
      Subsec. (j). Pub. L. 105-244, Sec. 462(a)(2)(H), redesignated
    subsec. (j) as (i).
      Subsec. (j)(1)(B)(i). Pub. L. 105-244, Sec. 462(a)(2)(F),
    substituted "1999" for "1985".
      Subsec. (j)(2)(A)(i). Pub. L. 105-244, Sec. 462(a)(2)(G)(i),
    substituted "subsection (b)(3)" for "paragraph (3) of subsection
    (c)".
      Subsec. (j)(2)(B). Pub. L. 105-244, Sec. 462(a)(2)(G)(ii),
    substituted "subsection (b)" for "subsection (c)".
      1993 - Subsec. (a)(1), (2)(D). Pub. L. 103-208, Sec. 2(f)(1),
    substituted "if the institution has" for "if the institution which
    has" in closing provisions.
      Subsec. (d)(4)(C). Pub. L. 103-208, Sec. 2(f)(2), 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".
      Subsecs. (e)(2), (h)(4)(B). Pub. L. 103-208, Sec. 2(f)(3), (4),
    realigned margins.
      1992 - Subsec. (a)(1)(A). Pub. L. 102-325, Sec. 462(a),
    substituted "allocated to such institution" for "such institution
    received".
      Subsec. (e). Pub. L. 102-325, Sec. 462(b), designated existing
    provisions as par. (1) and added par. (2).
      Subsec. (f). Pub. L. 102-325, Sec. 462(c), substituted "default
    reduction and default penalties" for "Default penalty" in heading
    and amended text generally. Prior to amendment, text read as
    follows: "For any institution which has a default rate which equals
    or exceeds 7.5 percent but does not exceed the maximum default rate
    applicable to the award year under subsection (g) of this section,
    the institution's default penalty is a percentage equal to the
    complement of such default rate. For any institution which has a
    default rate that does not exceed 7.5 percent, the institution's
    default penalty is equal to one."
      Subsec. (g). Pub. L. 102-325, Sec. 462(d), amended subsec. (g)
    generally. Prior to amendment, subsec. (g) read as follows:
      "(1) For award years 1988, 1989, and 1990, the applicable maximum
    default rate is 20 percent.
      "(2) For award year 1991 and subsequent years, the applicable
    maximum default rate is 15 percent."
      Subsec. (h). Pub. L. 102-325, Sec. 462(e), substituted
    "Definitions of default rate and cohort default rate" for
    "Definition of default rate" in heading, in par. (1) substituted
    "For any award year prior to award year 1994, for the purpose" for
    "For the purpose", added par. (3), redesignated former par. (3) as
    (4), substituted "240" for "120" in par. (4)(A), and amended par.
    (4)(B) generally. Prior to amendment, par. (4)(B) read as follows:
    "180 days (in the case of a loan repayable quarterly),".
      Subsec. (j). Pub. L. 102-325, Sec. 462(f), amended subsec. (j)
    generally. Prior to amendment, subsec. (j) read as follows: "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."
      1987 - Subsec. (a)(1)(A). Pub. L. 100-50, Sec. 13(a), amended
    subpar. (A) generally, substituting "of Federal capital
    contribution such institution received" for "such institution
    expended".
      Subsec. (d)(3), (4). Pub. L. 100-50, Sec. 13(b), redesignated
    par. (3), defining "average cost of attendance" and calculating
    average undergraduate and graduate and professional tuition and
    fees, standard living expenses, and allowance for books and
    supplies, as (4).
      Subsec. (e). Pub. L. 100-50, Sec. 13(c), struck out "; cash on
    hand" after "collections" in heading.
      Subsec. (f). Pub. L. 100-50, Sec. 13(d), substituted "subsection
    (g) of this section" for "paragraph (2)".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-244, title IV, Sec. 462(a)(3), Oct. 7, 1998, 112
    Stat. 1721, provided that: "The amendments made by this subsection
    [amending this section] shall apply with respect to allocations of
    amounts appropriated pursuant to section 461(b) [20 U.S.C.
    1087aa(b)] for fiscal year 2000 or any succeeding fiscal year."
      Amendment by section 462(b)-(e) of Pub. L. 105-244 effective Oct.
    1, 1998, except as otherwise provided in Pub. L. 105-244, see
    section 3 of Pub. L. 105-244, set out as a note under section 1001
    of this title.

                     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 applicable with respect to academic year 1988-1989 and
    succeeding academic years, see section 405(b) of Pub. L. 99-498, as
    amended, set out as a note under section 1087dd of this title.

-End-



-CITE-
    20 USC Sec. 1087cc                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part D - Federal Perkins Loans

-HEAD-
    Sec. 1087cc. Agreements with institutions of higher education

-STATUTE-
    (a) Contents of agreements
      An agreement with any institution of higher education for the
    payment of Federal capital contributions under this part shall - 
        (1) provide for the establishment and maintenance of a student
      loan fund for the purpose of this part;
        (2) provide for the deposit in such fund of - 
          (A) Federal capital contributions from funds appropriated
        under section 1087aa of this title;
          (B) a capital contribution by an institution in an amount
        equal to one-third of the Federal capital contributions
        described in subparagraph (A);
          (C) collections of principal and interest on student loans
        made from deposited funds;
          (D) charges collected pursuant to regulations under section
        1087dd(c)(1)(H) of this title; and
          (E) any other earnings of the funds;

        (3) provide that such student loan fund shall be used only for -
       
          (A) loans to students, in accordance with the provisions of
        this part;
          (B) administrative expenses, as provided in subsection (b) of
        this section;
          (C) capital distributions, as provided in section 1087ff of
        this title; and
          (D) costs of litigation, and other collection costs agreed to
        by the Secretary in connection with the collection of a loan
        from the fund (and interest thereon) or a charge assessed
        pursuant to regulations under section 1087dd(c)(1)(H) of this
        title;

        (4) provide that where a note or written agreement evidencing a
      loan has been in default despite due diligence on the part of the
      institution in attempting collection thereon - 
          (A) if the institution has knowingly failed to maintain an
        acceptable collection record with respect to such loan, as
        determined by the Secretary in accordance with criteria
        established by regulation, the Secretary may - 
            (i) require the institution to assign such note or
          agreement to the Secretary, without recompense; and
            (ii) apportion any sums collected on such a loan, less an
          amount not to exceed 30 percent of any sums collected to
          cover the Secretary's collection costs, among other
          institutions in accordance with section 1087bb of this title;
          or

          (B) if the institution is not one described in subparagraph
        (A), the Secretary may - 
            (i) allow such institution to transfer its interest in such
          loan to the Secretary, for collection, and the Secretary may
          use any collections thereon (less an amount not to exceed 30
          percent of any such sums collected to cover the Secretary's
          collection costs) to make allocations to institutions of
          additional capital contributions in accordance with section
          1087bb of this title; or
            (ii) allow such institution to refer such note or agreement
          to the Secretary, without recompense, except that any sums
          collected on such a loan (less an amount not to exceed 30
          percent of any such sums collected to cover the Secretary's
          collection costs) shall be repaid to such institution no
          later than 180 days after collection by the Secretary and
          treated as an additional capital contribution;

        (5) provide that, if an institution of higher education
      determines not to service and collect student loans made
      available from funds under this part, the institution will
      assign, at the beginning of the repayment period, notes or
      evidence of obligations of student loans made from such funds to
      the Secretary and the Secretary shall apportion any sums
      collected on such notes or obligations (less an amount not to
      exceed 30 percent of any such sums collected to cover that
      Secretary's collection costs) among other institutions in
      accordance with section 1087bb of this title;
        (6) provide that, notwithstanding any other provision of law,
      the Secretary will provide to the institution any information
      with respect to the names and addresses of borrowers or other
      relevant information which is available to the Secretary, from
      whatever source such information may be derived;
        (7) provide assurances that the institution will comply with
      the provisions of section 1087cc-1 of this title;
        (8) provide that the institution of higher education will make
      loans first to students with exceptional need; and
        (9) include such other reasonable provisions as may be
      necessary to protect the United States from unreasonable risk of
      loss and as are agreed to by the Secretary and the institution.
    (b) Administrative expenses
      An institution which has entered into an agreement under
    subsection (a) of this section shall be entitled, for each fiscal
    year during which it makes student loans from a student loan fund
    established under such agreement, to a payment in lieu of
    reimbursement for its expenses in administering its student loan
    program under this part during such year. Such payment shall be
    made in accordance with section 1096 of this title.
    (c) Cooperative agreements with credit bureau organizations
      (1) For the purpose of promoting responsible repayment of loans
    made pursuant to this part, the Secretary and each institution of
    higher education participating in the program under this part shall
    enter into cooperative agreements with credit bureau organizations
    to provide for the exchange of information concerning student
    borrowers concerning whom the Secretary has received a referral
    pursuant to section 1087gg of this title and regarding loans held
    by the Secretary or an institution.
      (2) Each cooperative agreement made pursuant to paragraph (1)
    shall be made in accordance with the requirements of section 1080a
    of this title except that such agreement shall provide for the
    disclosure by the Secretary or an institution, as the case may be,
    to such organizations, with respect to any loan held by the
    Secretary or the institution, respectively, of - 
        (A) the date of disbursement and the amount of such loans made
      to any borrower under this part at the time of disbursement of
      the loan;
        (B) information concerning the repayment and collection of any
      such loan, including information concerning the status of such
      loan; and
        (C) the date of cancellation of the note upon completion of
      repayment by the borrower of any such loan, or upon cancellation
      or discharge of the borrower's obligation on the loan for any
      reason.

      (3) Notwithstanding paragraphs (4) and (6) (!1) of subsection (a)
    of section 1681c of title 15, a consumer reporting agency may make
    a report containing information received from the Secretary or an
    institution regarding the status of a borrower's account on a loan
    made under this part until the loan is paid in full.

      (4)(A) Except as provided in subparagraph (B), an institution of
    higher education, after consultation with the Secretary and
    pursuant to the agreements entered into under paragraph (1), shall
    disclose at least annually to any credit bureau organization with
    which the Secretary has such an agreement the information set forth
    in paragraph (2), and shall disclose promptly to such credit bureau
    organization any changes to the information previously disclosed.
      (B) The Secretary may promulgate regulations establishing
    criteria under which an institution of higher education may cease
    reporting the information described in paragraph (2) before a loan
    is paid in full.
      (5) Each institution of higher education shall notify the
    appropriate credit bureau organizations whenever a borrower of a
    loan that is made and held by the institution and that is in
    default makes 6 consecutive monthly payments on such loan, for the
    purpose of encouraging such organizations to update the status of
    information maintained with respect to that borrower.
    (d) Limitation on use of interest bearing accounts
      In carrying out the provisions of subsection (a)(9) of this
    section, the Secretary may not require that any collection agency,
    collection attorney, or loan servicer collecting loans made under
    this part deposit amounts collected on such loans in interest
    bearing accounts, unless such agency, attorney, or servicer holds
    such amounts for more than 45 days.
    (e) Special due diligence rule
      In carrying out the provisions of subsection (a)(5) (!1) of this
    section relating to due diligence, the Secretary shall make every
    effort to ensure that institutions of higher education may use
    Internal Revenue Service skip-tracing collection procedures on
    loans made under this part.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 463, as added Pub. L. 99-498, title
    IV, Sec. 405(a), Oct. 17, 1986, 100 Stat. 1444; amended Pub. L. 100-
    50, Sec. 13(e), (f), June 3, 1987, 101 Stat. 349; Pub. L. 102-325,
    title IV, Sec. 463(a), (b), July 23, 1992, 106 Stat. 579; Pub. L.
    103-208, Sec. 2(f)(5)-(7), Dec. 20, 1993, 107 Stat. 2471; Pub. L.
    105-244, title IV, Sec. 463, Oct. 7, 1998, 112 Stat. 1724.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Paragraph (6) of subsection (a) of section 1681c of title 15,
    referred to in subsec. (c)(3), was redesignated paragraph (5) of
    subsection (a) of section 1681c of title 15 by Pub. L. 105-347,
    Sec. 5(4), Nov. 2, 1998, 112 Stat. 3211.
      Subsection (a)(5) of this section relating to due diligence,
    referred to in subsec. (e), was redesignated subsec. (a)(4), by
    Pub. L. 105-244, title IV, Sec. 463(a)(3), Oct. 7, 1998, 112 Stat.
    1724.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087cc, Pub. L. 89-329, title IV, Sec. 463, as
    added Pub. L. 92-318, title I, Sec. 137(b), June 23, 1972, 86 Stat.
    274; amended Pub. L. 94-482, title I, Sec. 130(c), Oct. 12, 1976,
    90 Stat. 2146; Pub. L. 96-374, title IV, Secs. 442(b)(1)-(4),
    445(a), (b)(1), 447(a), 448(b), title XIII, Sec. 1391(a)(1), Oct.
    3, 1980, 94 Stat. 1439, 1440, 1442, 1443, 1503; Pub. L. 99-272,
    title XVI, Secs. 16025, 16026, Apr. 7, 1986, 100 Stat. 352, 353,
    related to agreements with institutions of higher education, prior
    to the general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Subsec. (a)(2)(B). Pub. L. 105-244, Sec. 463(a)(1),
    amended subpar. (B) generally. Prior to amendment, subpar. (B) read
    as follows: "a capital contribution - 
        "(i) by an institution that - 
          "(I) is granted permission by the Secretary to participate in
        an Expanded Lending Option under the program, and
          "(II) has a default rate which does not exceed 7.5 percent
        for award year 1993-1994 and has a cohort default rate which
        does not exceed 15 percent for award year 1994-1995 or for any
        succeeding award year,
      in an amount not less than the amount of the Federal capital
      contributions described in subparagraph (A); or
        "(ii) by any other institution, in an amount not less than
      three-seventeenths of such Federal capital contribution in fiscal
      year 1993, and one-third of such Federal capital contribution in
      each of the succeeding fiscal years, of the amount of the Federal
      capital contributions described in subparagraph (A);".
      Subsec. (a)(4) to (10). Pub. L. 105-244, Sec. 463(a)(2), (3),
    redesignated pars. (5) to (10) as (4) to (9), respectively, and
    struck out former par. (4) which read as follows: "provide that
    where a note or written agreement evidencing a note has been in
    default for (A) 120 days, in the case of a loan which is repayable
    in monthly installments, or (B) 180 days, in the case of a loan
    which is repayable in less frequent installments, notice of such
    default shall be given to the Secretary in an annual report
    describing the total number of loans from such fund which are in
    such default;".
      Subsec. (c)(1). Pub. L. 105-244, Sec. 463(b)(1), substituted "the
    Secretary and each institution of higher education participating in
    the program under this part shall" for "the Secretary shall" and
    inserted "and regarding loans held by the Secretary or an
    institution" after "section 1087gg of this title".
      Subsec. (c)(2). Pub. L. 105-244, Sec. 463(b)(2)(A), in
    introductory provisions, substituted "by the Secretary or an
    institution, as the case may be, to such organizations, with
    respect to any loan held by the Secretary or the institution,
    respectively, of - " for "by the Secretary to such organizations,
    with respect to any loan for which the Secretary is responsible, of
    - ".
      Subsec. (c)(2)(A). Pub. L. 105-244, Sec. 463(b)(2)(B), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "the date of disbursement and the amount of any such
    loan;".
      Subsec. (c)(2)(B). Pub. L. 105-244, Sec. 463(b)(2)(C), inserted
    "the repayment and" after "concerning" and substituted "status of
    such" for "status of any defaulted".
      Subsec. (c)(2)(C). Pub. L. 105-244, Sec. 463(b)(2)(D), inserted
    ", or upon cancellation or discharge of the borrower's obligation
    on the loan for any reason" before period at end.
      Subsec. (c)(3). Pub. L. 105-244, Sec. 463(b)(3)(A), in
    introductory provisions, inserted "or an institution" after "from
    the Secretary" and substituted "until the loan is paid in full."
    for "until - ".
      Subsec. (c)(3)(A), (B). Pub. L. 105-244, Sec. 463(b)(3)(B),
    struck out subpars. (A) and (B) which read as follows:
      "(A) 7 years from the date on which the Secretary accepted an
    assignment or referral of a loan, or
      "(B) 7 years from the date the Secretary first reports the
    account to a consumer reporting agency."
      Subsec. (c)(4). Pub. L. 105-244, Sec. 463(b)(4), amended par. (4)
    generally. Prior to amendment, par. (4) read as follows: "Each
    institution of higher education, after consultation with the
    Secretary and pursuant to the agreements entered into under
    paragraph (1), shall disclose at least annually to any credit
    bureau organization with which the Secretary has such an agreement -
     
        "(A) the amount of loans made to any borrower under this part
      at the time of the disbursement of the loan; and
        "(B) the information set forth in section 1080a(a) of this
      title."
      Subsec. (c)(5). Pub. L. 105-244, Sec. 463(b)(4), added par. (5).
      Subsec. (d). Pub. L. 105-244, Sec. 463(c), substituted
    "subsection (a)(9)" for "subsection (a)(10)".
      1993 - Subsec. (a)(2)(B)(i)(II). Pub. L. 103-208, Sec. 2(f)(5),
    substituted "7.5 percent for award year 1993-1994 and has a cohort
    default rate which does not exceed 15 percent for award year 1994-
    1995 or for any succeeding award year" for "7.5 percent".
      Subsec. (c)(4). Pub. L. 103-208, Sec. 2(f)(6), substituted "shall
    disclose at least annually" for "shall disclose" in introductory
    provisions.
      Subsecs. (d), (e). Pub. L. 103-208, Sec. 2(f)(7), added subsecs.
    (d) and (e).
      1992 - Subsec. (a)(2)(B). Pub. L. 102-325, Sec. 463(a), amended
    subpar. (B) generally. Prior to amendment, subpar. (B) read as
    follows: "a capital contribution by such institution in an amount
    equal to not less than one-ninth of the amount of the Federal
    capital contributions described in subparagraph (A);".
      Subsec. (c)(3)(B). Pub. L. 102-325, Sec. 463(b)(1), struck out ",
    if that account has not been previously reported by any other
    holder of the note" after "agency".
      Subsec. (c)(4). Pub. L. 102-325, Sec. 463(b)(2), added par. (4).
      1987 - Subsec. (a)(4). Pub. L. 100-50, Sec. 13(e), substituted
    "in an annual report" for "in a report" and struck out ", and made
    to the Secretary at least semiannually" after "in such default".
      Subsec. (b). Pub. L. 100-50, Sec. 13(f), substituted "section
    1096 of this title" for "section 1092 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 July 23, 1992, except that
    changes made in subsec. (a)(2)(B), relating to the matching of
    Federal capital contributions, applicable to funds provided for
    such program for award years beginning on or after July 1, 1993,
    see section 468 of Pub. L. 102-325, set out as a note under section
    1087dd of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

                              EFFECTIVE DATE                          
      Section effective Oct. 17, 1986, except as otherwise provided,
    see section 2 of Pub. L. 99-498, set out as a note under section
    1001 of this title.
      Subsection (a)(9) of this section applicable only to loans made
    for periods of enrollment beginning on or after July 1, 1987, see
    section 405(b) of Pub. L. 99-498, set out as a note under section
    1087dd of this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1087cc-1                                        01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part D - Federal Perkins Loans

-HEAD-
    Sec. 1087cc-1. Student loan information by eligible institutions

-STATUTE-
    (a) Disclosure required prior to disbursement
      Each institution of higher education, in order to carry out the
    provisions of section 1087cc(a)(8) (!1) of this title, shall, at or
    prior to the time such institution makes a loan to a student
    borrower which is made under this part, provide thorough and
    adequate loan information on such loan to the student borrower. Any
    disclosure required by this subsection may be made by an
    institution of higher education as part of the written application
    material provided to the borrower, or as part of the promissory
    note evidencing the loan, or on a separate written form provided to
    the borrower. The disclosures shall include - 

        (1) the name of the institution of higher education, and the
      address to which communications and payments should be sent;
        (2) the principal amount of the loan;
        (3) the amount of any charges collected by the institution at
      or prior to the disbursal of the loan and whether such charges
      are deducted from the proceeds of the loan or paid separately by
      the borrower;
        (4) the stated interest rate on the loan;
        (5) the yearly and cumulative maximum amounts that may be
      borrowed;
        (6) an explanation of when repayment of the loan will be
      required and when the borrower will be obligated to pay interest
      that accrues on the loan;
        (7) a statement as to the minimum and maximum repayment term
      which the institution may impose, and the minimum monthly payment
      required by law and a description of any penalty imposed as a
      consequence of default, such as liability for expenses reasonably
      incurred in attempts by the Secretary or institutions to collect
      on a loan;
        (8) a statement of the total cumulative balance, including the
      loan applied for, owed by the student to that lender, and an
      estimate of the projected monthly payment, given such cumulative
      balance;
        (9) an explanation of any special options the borrower may have
      for loan consolidation or other refinancing of the loan;
        (10) a statement that the borrower has the right to prepay all
      or part of the loan, at any time, without penalty, a statement
      summarizing circumstances in which repayment of the loan or
      interest that accrues on the loan may be deferred, and a brief
      notice of the program for repayment of loans, on the basis of
      military service, pursuant to the Department of Defense
      educational loan repayment program (10 U.S.C. 16302);
        (11) a definition of default and the consequences to the
      borrower if the borrower defaults, together with a statement that
      the disbursement of, and the default on, a loan under this part,
      shall be reported to a credit bureau or credit reporting agency;
        (12) to the extent practicable, the effect of accepting the
      loan on the eligibility of the borrower for other forms of
      student assistance; and
        (13) an explanation of any cost the borrower may incur in the
      making or collection of the loan.
    (b) Disclosure required prior to repayment
      Each institution of higher education shall enter into an
    agreement with the Secretary under which the institution will,
    prior to the start of the repayment period of the student borrower
    on loans made under this part, disclose to the student borrower the
    information required under this subsection. Any disclosure required
    by this subsection may be made by an institution of higher
    education either in a promissory note evidencing the loan or loans
    or in a written statement provided to the borrower. The disclosures
    shall include - 
        (1) the name of the institution of higher education, and the
      address to which communications and payments should be sent;
        (2) the scheduled date upon which the repayment period is to
      begin;
        (3) the estimated balance owed by the borrower on the loan or
      loans covered by the disclosure as of the scheduled date on which
      the repayment period is to begin (including, if applicable, the
      estimated amount of interest to be capitalized);
        (4) the stated interest rate on the loan or loans, or the
      combined interest rate of loans with different stated interest
      rates;
        (5) the nature of any fees which may accrue or be charged to
      the borrower during the repayment period;
        (6) the repayment schedule for all loans covered by the
      disclosure including the date the first installment is due, and
      the number, amount, and frequency of required payments;
        (7) an explanation of any special options the borrower may have
      for loan consolidation or other refinancing of the loan;
        (8) the projected total of interest charges which the borrower
      will pay on the loan or loans, assuming that the borrower makes
      payments exactly in accordance with the repayment schedule; and
        (9) a statement that the borrower has the right to prepay all
      or part of the loan or loans covered by the disclosure at any
      time without penalty.
    (c) Costs and effects of disclosures
      Such information shall be available without cost to the borrower.
    The failure of an eligible institution to provide information as
    required by this section shall not (1) relieve a borrower of the
    obligation to repay a loan in accordance with its terms, (2)
    provide a basis for a claim for civil damages, or (3) be deemed to
    abrogate the obligation of the Secretary to make payments with
    respect to such loan.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 463A, as added Pub. L. 99-498,
    title IV, Sec. 405(a), Oct. 17, 1986, 100 Stat. 1446; amended Pub.
    L. 100-50, Sec. 13(g), (h), June 3, 1987, 101 Stat. 349; Pub. L.
    102-325, title IV, Sec. 463(c), July 23, 1992, 106 Stat. 579; Pub.
    L. 103-208, Sec. 2(f)(8), Dec. 20, 1993, 107 Stat. 2471; Pub. L.
    104-106, div. A, title XV, Sec. 1501(e)(4), Feb. 10, 1996, 110
    Stat. 501.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1087cc(a) of this title, referred to in subsec. (a), was
    amended by Pub. L. 105-244, title IV, Sec. 463(a)(3), Oct. 7, 1998,
    112 Stat. 1724, which redesignated pars. (8) and (9) as (7) and
    (8), respectively.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087cc-1, Pub. L. 89-329, title IV, Sec. 463A, as
    added Pub. L. 96-374, title IV, Sec. 447(b), Oct. 3, 1980, 94 Stat.
    1443; amended Pub. L. 97-301, Sec. 13, Oct. 13, 1982, 96 Stat.
    1405; Pub. L. 98-79, Sec. 3(b), Aug. 15, 1983, 97 Stat. 478; Pub.
    L. 99-272, title XVI, Sec. 16027, Apr. 7, 1986, 100 Stat. 353,
    related to student loan information to be provided by institutions,
    prior to the general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1996 - Subsec. (a)(10). Pub. L. 104-106 substituted "(10 U.S.C.
    16302)" for "(10 U.S.C. 2172)".
      1993 - Subsecs. (d), (e). Pub. L. 103-208 struck out subsecs. (d)
    and (e), which read as follows:
      "(d) Limitation on Use of Interest Bearing Accounts. - In
    carrying out the provisions of subsection (a)(10) of this section,
    the Secretary may not require that any collection agency,
    collection attorney, or loan servicer collecting loans made under
    this part deposit amounts collected on such loans in interest
    bearing accounts, unless such agency, attorney, or servicer holds
    such amounts for more than 45 days.
      "(e) Special Due Diligence Rule. - In carrying out the provisions
    of subsection (a)(5) of this section relating to due diligence, the
    Secretary shall make every effort to ensure that institutions of
    higher education may use Internal Revenue Service skip-tracing
    collection procedures on loans made under this part."
      1992 - Subsec. (a)(11). Pub. L. 102-325, Sec. 463(c)(1),
    substituted "together with a statement that the disbursement of,
    and the default on, a loan under this part, shall be" for
    "including a statement that the default may be".
      Subsecs. (d), (e). Pub. L. 102-325, Sec. 463(c)(2), added
    subsecs. (d) and (e).
      1987 - Subsec. (a)(8). Pub. L. 100-50, Sec. 13(g), added par. (8)
    and struck out former par. (8) which read as follows: "a statement
    of the total cumulative balance owed by the student to that
    institution, the projected level of indebtedness of the student
    based on a 2- or 4-year college career, and an estimate of the
    projected monthly repayment given the level of indebtedness over a
    2-, 4-, or 5-year college career;".
      Subsec. (a)(10). Pub. L. 100-50, Sec. 13(h), substituted "the
    Department of Defense educational loan repayment program (10 U.S.C.
    2172)" for "section 902 of the Department of Defense Authorization
    Act, 1981 (10 U.S.C. 2141, note)".

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-106 effective as if included in the
    Reserve Officer Personnel Management Act, title XVI of Pub. L. 103-
    337, as enacted on Oct. 5, 1994, see section 1501(f)(3) of Pub. L.
    104-106, set out as a note under section 113 of Title 10, Armed
    Forces.

                     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 applicable only to loans made for periods of enrollment
    beginning on or after July 1, 1987, see section 405(b) of Pub. L.
    99-498, as amended, set out as a note under section 1087dd of this
    title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1087dd                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part D - Federal Perkins Loans

-HEAD-
    Sec. 1087dd. Terms of loans

-STATUTE-
    (a) Terms and conditions
      (1) Loans from any student loan fund established pursuant to an
    agreement under section 1087cc of this title to any student by any
    institution shall, subject to such conditions, limitations, and
    requirements as the Secretary shall prescribe by regulation, be
    made on such terms and conditions as the institution may determine.
      (2)(A) Except as provided in paragraph (4), the total of loans
    made to a student in any academic year or its equivalent by an
    institution of higher education from a loan fund established
    pursuant to an agreement under this part shall not exceed - 
        (i) $4,000, in the case of a student who has not successfully
      completed a program of undergraduate education; or
        (ii) $6,000, in the case of a graduate or professional student
      (as defined in regulations issued by the Secretary).

      (B) Except as provided in paragraph (4), the aggregate unpaid
    principal amount for all loans made to a student by institutions of
    higher education from loan funds established pursuant to agreements
    under this part may not exceed - 
        (i) $40,000, in the case of any graduate or professional
      student (as defined by regulations issued by the Secretary, and
      including any loans from such funds made to such person before
      such person became a graduate or professional student);
        (ii) $20,000, in the case of a student who has successfully
      completed 2 years of a program of education leading to a
      bachelor's degree but who has not completed the work necessary
      for such a degree (determined under regulations issued by the
      Secretary), and including any loans from such funds made to such
      person before such person became such a student; and
        (iii) $8,000, in the case of any other student.

      (3) Regulations of the Secretary under paragraph (1) shall be
    designed to prevent the impairment of the capital student loan
    funds to the maximum extent practicable and with a view toward the
    objective of enabling the student to complete his course of study.
      (4) In the case of a program of study abroad that is approved for
    credit by the home institution at which a student is enrolled and
    that has reasonable costs in excess of the home institution's
    budget, the annual and aggregate loan limits for the student may
    exceed the amounts described in paragraphs (2)(A) and (2)(B) by 20
    percent.
    (b) Demonstration of need and eligibility required
      (1) A loan from a student loan fund assisted under this part may
    be made only to a student who demonstrates financial need in
    accordance with part E of this subchapter, who meets the
    requirements of section 1091 of this title, and who provides the
    institution with the student's drivers license number, if any, at
    the time of application for the loan. A student who is in default
    on a loan under this part shall not be eligible for an additional
    loan under this part unless such loan meets one of the conditions
    for exclusion under section 1087bb(g)(1)(E) of this title.
      (2) If the institution's capital contribution under section
    1087bb of this title is directly or indirectly based in part on the
    financial need demonstrated by students who are (A) attending the
    institution less than full time, or (B) independent students, then
    a reasonable portion of the loans made from the institution's
    student loan fund containing the contribution shall be made
    available to such students.
    (c) Contents of loan agreement
      (1) Any agreement between an institution and a student for a loan
    from a student loan fund assisted under this part - 
        (A) shall be evidenced by note or other written instrument
      which, except as provided in paragraph (2), provides for
      repayment of the principal amount of the loan, together with
      interest thereon, in equal installments (or, if the borrower so
      requests, in graduated periodic installments determined in
      accordance with such schedules as may be approved by the
      Secretary) payable quarterly, bimonthly, or monthly, at the
      option of the institution, over a period beginning nine months
      after the date on which the student ceases to carry, at an
      institution of higher education or a comparable institution
      outside the United States approved for this purpose by the
      Secretary, at least one-half the normal full-time academic
      workload, and ending 10 years and 9 months after such date except
      that such period may begin earlier than 9 months after such date
      upon the request of the borrower;
        (B) shall include provision for acceleration of repayment of
      the whole, or any part, of such loan, at the option of the
      borrower;
        (C)(i) may provide, at the option of the institution, in
      accordance with regulations of the Secretary, that during the
      repayment period of the loan, payments of principal and interest
      by the borrower with respect to all outstanding loans made to the
      student from a student loan fund assisted under this part shall
      be at a rate equal to not less than $40 per month, except that
      the institution may, subject to such regulations, permit a
      borrower to pay less than $40 per month for a period of not more
      than one year where necessary to avoid hardship to the borrower,
      but without extending the 10-year maximum repayment period
      provided for in subparagraph (A) of this paragraph; and
        (ii) may provide that the total payments by a borrower for a
      monthly or similar payment period with respect to the aggregate
      of all loans held by the institution may, when the amount of a
      monthly or other similar payment is not a multiple of $5, be
      rounded to the next highest whole dollar amount that is a
      multiple of $5;
        (D) shall provide that the loan shall bear interest, on the
      unpaid balance of the loan, at the rate of 5 percent per year in
      the case of any loan made on or after October 1, 1981, except
      that no interest shall accrue (I) prior to the beginning date of
      repayment determined under paragraph (2)(A)(i), or (II) during
      any period in which repayment is suspended by reason of paragraph
      (2);
        (E) shall provide that the loan shall be made without security
      and without endorsement;
        (F) shall provide that the liability to repay the loan shall be
      canceled upon the death of the borrower, or if he becomes
      permanently and totally disabled as determined in accordance with
      regulations of the Secretary;
        (G) shall provide that no note or evidence of obligation may be
      assigned by the lender, except upon the transfer of the borrower
      to another institution participating under this part (or, if not
      so participating, is eligible to do so and is approved by the
      Secretary for such purpose), to such institution, and except as
      necessary to carry out section 1087cc(a)(6) (!1) of this title;

        (H) pursuant to regulations of the Secretary, shall provide for
      an assessment of a charge with respect to the loan for failure of
      the borrower to pay all or part of an installment when due, which
      shall include the expenses reasonably incurred in attempting
      collection of the loan, to the extent permitted by the Secretary,
      except that no charge imposed under this subparagraph shall
      exceed 20 percent of the amount of the monthly payment of the
      borrower; and
        (I) shall contain a notice of the system of disclosure of
      information concerning default on such loan to credit bureau
      organizations under section 1087cc(c) of this title.

      (2)(A) No repayment of principal of, or interest on, any loan
    from a student loan fund assisted under this part shall be required
    during any period - 
        (i) during which the borrower - 
          (I) is pursuing at least a half-time course of study as
        determined by an eligible institution; or
          (II) is pursuing a course of study pursuant to a graduate
        fellowship program approved by the Secretary, or pursuant to a
        rehabilitation training program for disabled individuals
        approved by the Secretary,

      except that no borrower shall be eligible for a deferment under
      this clause, or loan made under this part while serving in a
      medical internship or residency program;
        (ii) not in excess of 3 years during which the borrower is
      seeking and unable to find full-time employment;
        (iii) not in excess of 3 years during which the borrower - 
          (I) is serving on active duty during a war or other military
        operation or national emergency; or
          (II) is performing qualifying National Guard duty during a
        war or other military operation or national emergency;

        (iv) not in excess of 3 years for any reason which the lender
      determines, in accordance with regulations prescribed by the
      Secretary under section 1085(o) of this title, has caused or will
      cause the borrower to have an economic hardship; or
        (v) during which the borrower is engaged in service described
      in section 1087ee(a)(2) of this title;

    and provides that any such period shall not be included in
    determining the 10-year period described in subparagraph (A) of
    paragraph (1).
      (B) No repayment of principal of, or interest on, any loan for
    any period described in subparagraph (A) shall begin until 6 months
    after the completion of such period.
      (C) An individual with an outstanding loan balance who meets the
    eligibility criteria for a deferment described in subparagraph (A)
    as in effect on October 7, 1998, shall be eligible for deferment
    under this paragraph notwithstanding any contrary provision of the
    promissory note under which the loan or loans were made, and
    notwithstanding any amendment (or effective date provision relating
    to any amendment) to this section made prior to the date of such
    deferment.
      (3)(A) The Secretary is authorized, when good cause is shown, to
    extend, in accordance with regulations, the 10-year maximum
    repayment period provided for in subparagraph (A) of paragraph (1)
    with respect to individual loans.
      (B) Pursuant to uniform criteria established by the Secretary,
    the repayment period for any student borrower who during the
    repayment period is a low-income individual may be extended for a
    period not to exceed 10 years and the repayment schedule may be
    adjusted to reflect the income of that individual.
      (4) The repayment period for a loan made under this part shall
    begin on the day immediately following the expiration of the
    period, specified in paragraph (1)(A), after the student ceases to
    carry the required academic workload, unless the borrower requests
    and is granted a repayment schedule that provides for repayment to
    commence at an earlier point in time, and shall exclude any period
    of authorized deferment, forbearance, or cancellation.
      (5) The institution may elect - 
        (A) to add the amount of any charge imposed under paragraph
      (1)(H) to the principal amount of the loan as of the first day
      after the day on which the installment was due and to notify the
      borrower of the assessment of the charge; or
        (B) to make the amount of the charge payable to the institution
      not later than the due date of the next installment.

      (6) Requests for deferment of repayment of loans under this part
    by students engaged in graduate or post-graduate fellowship-
    supported study (such as pursuant to a Fulbright grant) outside
    the United States shall be approved until completion of the period
    of the fellowship.
      (7) There shall be excluded from the 9-month period that begins
    on the date on which a student ceases to carry at least one-half
    the normal full-time academic workload (as described in paragraph
    (1)(A)) any period not to exceed 3 years during which a borrower
    who is a member of a reserve component of the Armed Forces named in
    section 10101 of title 10 is called or ordered to active duty for a
    period of more than 30 days (as defined in section 101(d)(2) of
    such title). Such period of exclusion shall include the period
    necessary to resume enrollment at the borrower's next available
    regular enrollment period.
    (d) Availability of loan fund to all eligible students
      An agreement under this part for payment of Federal capital
    contributions shall include provisions designed to make loans from
    the student loan fund established pursuant to such agreement
    reasonably available (to the extent of the available funds in such
    fund) to all eligible students in such institutions in need
    thereof.
    (e) Forbearance
      The Secretary shall ensure that, upon written request, an
    institution of higher education shall grant a borrower forbearance
    of principal and interest or principal only, renewable at 12-month
    intervals for a period not to exceed 3 years, on such terms as are
    otherwise consistent with the regulations issued by the Secretary
    and agreed upon in writing by the parties to the loan, if - 
        (1) the borrower's debt burden equals or exceeds 20 percent of
      such borrower's gross income;
        (2) the institution determines that the borrower should qualify
      for forbearance for other reasons; or
        (3) the borrower is eligible for interest payments to be made
      on such loan for service in the Armed Forces under section 2174
      of title 10 and, pursuant to that eligibility, the interest on
      such loan is being paid under subsection (j) of this section,
      except that the form of a forbearance under this paragraph shall
      be a temporary cessation of all payments on the loan other than
      payments of interest on the loan that are made under subsection
      (j) of this section.
    (f) Special repayment rule authority
      (1) Subject to such restrictions as the Secretary may prescribe
    to protect the interest of the United States, in order to encourage
    repayment of loans made under this part which are in default, the
    Secretary may, in the agreement entered into under this part,
    authorize an institution of higher education to compromise on the
    repayment of such defaulted loans in accordance with paragraph (2).
    The Federal share of the compromise repayment shall bear the same
    relation to the institution's share of such compromise repayment as
    the Federal capital contribution to the institution's loan fund
    under this part bears to the institution's capital contribution to
    such fund.
      (2) No compromise repayment of a defaulted loan as authorized by
    paragraph (1) may be made unless the student borrower pays - 
        (A) 90 percent of the loan under this part;
        (B) the interest due on such loan; and
        (C) any collection fees due on such loan;

    in a lump sum payment.
    (g) Discharge
      (1) In general
        If a student borrower who received a loan made under this part
      on or after January 1, 1986, is unable to complete the program in
      which such student is enrolled due to the closure of the
      institution, then the Secretary shall discharge the borrower's
      liability on the loan (including the interest and collection
      fees) and shall subsequently pursue any claim available to such
      borrower against the institution and the institution's affiliates
      and principals, or settle the loan obligation pursuant to the
      financial responsibility standards described in section 1099c(c)
      of this title.
      (2) Assignment
        A borrower whose loan has been discharged pursuant to this
      subsection shall be deemed to have assigned to the United States
      the right to a loan refund in an amount that does not exceed the
      amount discharged against the institution and the institution's
      affiliates and principals.
      (3) Eligibility for additional assistance
        The period during which a student was unable to complete a
      course of study due to the closing of the institution shall not
      be considered for purposes of calculating the student's period of
      eligibility for additional assistance under this subchapter and
      part C of subchapter I of chapter 34 of title 42.
      (4) Special rule
        A borrower whose loan has been discharged pursuant to this
      subsection shall not be precluded, because of that discharge,
      from receiving additional grant, loan, or work assistance under
      this subchapter and part C of subchapter I of chapter 34 of title
      42 for which the borrower would be otherwise eligible (but for
      the default on the discharged loan). The amount discharged under
      this subsection shall be treated as an amount canceled under
      section 1087ee(a) of this title.
      (5) Reporting
        The Secretary or institution, as the case may be, shall report
      to credit bureaus with respect to loans that have been discharged
      pursuant to this subsection.
    (h) Rehabilitation of loans
      (1) Rehabilitation
        (A) In general
          If the borrower of a loan made under this part who has
        defaulted on the loan makes 12 ontime, consecutive, monthly
        payments of amounts owed on the loan, as determined by the
        institution, or by the Secretary in the case of a loan held by
        the Secretary, the loan shall be considered rehabilitated, and
        the institution that made that loan (or the Secretary, in the
        case of a loan held by the Secretary) shall request that any
        credit bureau organization or credit reporting agency to which
        the default was reported remove the default from the borrower's
        credit history.
        (B) Comparable conditions
          As long as the borrower continues to make scheduled
        repayments on a loan rehabilitated under this paragraph, the
        rehabilitated loan shall be subject to the same terms and
        conditions, and qualify for the same benefits and privileges,
        as other loans made under this part.
        (C) Additional assistance
          The borrower of a rehabilitated loan shall not be precluded
        by section 1091 of this title from receiving additional grant,
        loan, or work assistance under this subchapter and part C of
        subchapter I of chapter 34 of title 42 (for which the borrower
        is otherwise eligible) on the basis of defaulting on the loan
        prior to such rehabilitation.
        (D) Limitations
          A borrower only once may obtain the benefit of this paragraph
        with respect to rehabilitating a loan under this part.
      (2) Restoration of eligibility
        If the borrower of a loan made under this part who has
      defaulted on that loan makes 6 ontime, consecutive, monthly
      payments of amounts owed on such loan, the borrower's eligibility
      for grant, loan, or work assistance under this subchapter and
      part C of subchapter I of chapter 34 of title 42 shall be
      restored to the extent that the borrower is otherwise eligible. A
      borrower only once may obtain the benefit of this paragraph with
      respect to restored eligibility.
    (i) Incentive repayment program
      (1) In general
        Each institution of higher education may establish, with the
      approval of the Secretary, an incentive repayment program
      designed to reduce default and to replenish student loan funds
      established under this part. Each such incentive repayment
      program may - 
          (A) offer a reduction of the interest rate on a loan on which
        the borrower has made 48 consecutive, monthly repayments, but
        in no event may the rate be reduced by more than 1 percent;
          (B) provide for a discount on the balance owed on a loan on
        which the borrower pays the principal and interest in full
        prior to the end of the applicable repayment period, but in no
        event may the discount exceed 5 percent of the unpaid principal
        balance due on the loan at the time the early repayment is
        made; and
          (C) include such other incentive repayment options as the
        institution determines will carry out the objectives of this
        subsection.
      (2) Limitation
        No incentive repayment option under an incentive repayment
      program authorized by this subsection may be paid for with
      Federal funds, including any Federal funds from the student loan
      fund, or with institutional funds from the student loan fund.
    (j) Armed Forces student loan interest payment program
      (1) Authority
        Using funds received by transfer to the Secretary under section
      2174 of title 10 for the payment of interest on a loan made under
      this part to a member of the Armed Forces, the Secretary shall
      pay the interest on the loan as due for a period not in excess of
      36 consecutive months. The Secretary may not pay interest on such
      a loan out of any funds other than funds that have been so
      transferred.
      (2) Forbearance
        During the period in which the Secretary is making payments on
      a loan under paragraph (1), the institution of higher education
      shall grant the borrower forbearance in accordance with
      subsection (e)(3) of this section.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 464, as added Pub. L. 99-498, title
    IV, Sec. 405(a), Oct. 17, 1986, 100 Stat. 1448; amended Pub. L. 100-
    50, Sec. 13(i), June 3, 1987, 101 Stat. 349; Pub. L. 100-369, Sec.
    7(c), July 18, 1988, 102 Stat. 837; Pub. L. 101-239, title II, Sec.
    2002(a)(3), Dec. 19, 1989, 103 Stat. 2111; Pub. L. 102-325, title
    IV, Sec. 464, July 23, 1992, 106 Stat. 580; Pub. L. 103-208, Sec.
    2(f)(9)-(11), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 105-244, title
    IV, Sec. 464, Oct. 7, 1998, 112 Stat. 1725; Pub. L. 107-314, div.
    A, title VI, Sec. 651(d), Dec. 2, 2002, 116 Stat. 2580; Pub. L. 109-
    171, title VIII, Sec. 8007(c), Feb. 8, 2006, 120 Stat. 160.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1087cc(a) of this title, referred to in subsec.
    (c)(1)(G), was amended by Pub. L. 105-244, title IV, Sec.
    463(a)(3), Oct. 7, 1998, 112 Stat. 1724, which redesignated pars.
    (6) and (7) as (5) and (6), respectively.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087dd, Pub. L. 89-329, title IV, Sec. 464, as
    added Pub. L. 92-318, title I, Sec. 137(b), June 23, 1972, 86 Stat.
    275; amended Pub. L. 94-482, title I, Sec. 130(d)-(g)(1), Oct. 12,
    1976, 90 Stat. 2147; Pub. L. 95-43, Sec. 1(a)(39), June 15, 1977,
    91 Stat. 217; Pub. L. 96-374, title IV, Secs. 442(b)(5), 443, 444,
    445(b)(2), 446, 448(c), title XIII, Sec. 1391(a)(1), Oct. 3, 1980,
    94 Stat. 1440-1443, 1503; Pub. L. 97-35, title V, Sec. 539, Aug.
    13, 1981, 95 Stat. 458; Pub. L. 99-272, title XVI, Sec. 16028, Apr.
    7, 1986, 100 Stat. 353, related to terms and conditions of loans,
    prior to the general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      2006 - Subsec. (c)(2)(A)(iii) to (v). Pub. L. 109-171 added cl.
    (iii) and redesignated former cls. (iii) and (iv) as (iv) and (v),
    respectively.
      2002 - Subsec. (e)(3). Pub. L. 107-314, Sec. 651(d)(1), added
    par. (3).
      Subsec. (j). Pub. L. 107-314, Sec. 651(d)(2), added subsec. (j).
      1998 - Subsec. (a)(2). Pub. L. 105-244, Sec. 464(a), amended par.
    (2) generally. Prior to amendment, par. (2) related to limitations
    on the total of loans that could be made to a student by an
    institution of higher education from a loan fund established
    pursuant to an agreement under this part.
      Subsec. (b)(1). Pub. L. 105-244, Sec. 464(b)(1), inserted at end
    "A student who is in default on a loan under this part shall not be
    eligible for an additional loan under this part unless such loan
    meets one of the conditions for exclusion under section
    1087bb(g)(1)(E) of this title."
      Subsec. (b)(2). Pub. L. 105-244, Sec. 464(b)(2), amended par. (2)
    generally. Prior to amendment, par. (2) read as follows: "If the
    institution's capital contribution under section 1087bb of this
    title is directly or indirectly based in part on the financial need
    demonstrated by students who are (A) attending the institution less
    than full time, or (B) independent students, and if the total
    financial need of all such less than full-time and independent
    students at the institution exceeds 5 percent of the total
    financial need of all students at such institution, then at least 5
    percent of such loans shall be made available to such less than
    full-time and independent students."
      Subsec. (c)(1)(D). Pub. L. 105-244, Sec. 464(c)(1), struck out
    "(i) 3 percent per year, (ii) 4 percent per year in the case of any
    loan made on or after July 1, 1981, or (iii)" after "at the rate
    of" and substituted "paragraph (2)(A)(i)" for "subparagraph
    (A)(i)".
      Subsec. (c)(2)(A). Pub. L. 105-244, Sec. 464(c)(2), substituted
    "subparagraph (A) of paragraph (1)" for "subparagraph (B)" in
    concluding provisions.
      Subsec. (c)(2)(C). Pub. L. 105-244, Sec. 464(c)(3), added subpar.
    (C).
      Subsec. (c)(7). Pub. L. 105-244, Sec. 464(c)(4), added par. (7).
      Subsecs. (g) to (i). Pub. L. 105-244, Sec. 464(d), added subsecs.
    (g) to (i).
      1993 - Subsec. (c)(2)(B). Pub. L. 103-208, Sec. 2(f)(9),
    substituted "repayment of" for "repayment or".
      Subsec. (c)(6). Pub. L. 103-208, Sec. 2(f)(10), substituted
    "Fulbright" for "Fullbright".
      Subsec. (e). Pub. L. 103-208, Sec. 2(f)(11), substituted
    "principal" for "principle" before "only".
      1992 - Subsec. (a)(2). Pub. L. 102-325, Sec. 464(a), amended par.
    (2) generally. Prior to amendment, par. (2) read as follows: "The
    aggregate of the loans for all years made by institutions of higher
    education from loan funds established pursuant to agreements under
    this part may not exceed - 
        "(A) $18,000 in the case of any graduate or professional
      student (as defined by regulations of the Secretary, and
      including any loans from such funds made to such person before he
      became a graduate or professional student);
        "(B) $9,000 in the case of a student who has successfully
      completed 2 years of a program of education leading to a
      bachelor's degree, but who has not completed the work necessary
      for such a degree (determined under regulations of the Secretary,
      and including any loans from such funds made to such person
      before he became such a student); and
        "(C) $4,500 in the case of any other student."
      Subsec. (a)(4). Pub. L. 102-325, Sec. 464(b), added par. (4).
      Subsec. (b)(1). Pub. L. 102-325, Sec. 464(c)(1), substituted
    "this subchapter, who meets the requirements of section 1091 of
    this title, and who provides the institution with the student's
    drivers license number, if any, at the time of application for the
    loan" for "this subchapter and who meets the requirements of
    section 1091 of this title".
      Subsec. (b)(2). Pub. L. 102-325, Sec. 464(c)(2), amended par. (2)
    generally. Prior to amendment, par. (2) read as follows: "If the
    institution's Federal capital contribution under section 1087bb of
    this title is directly or indirectly based in part on the financial
    need demonstrated by students attending the institution less than
    full time, a reasonable proportion of the loans under this part
    shall be made available to such students."
      Subsec. (c)(1)(C)(i). Pub. L. 102-325, Sec. 464(d), substituted
    "$40" for "$30" in two places.
      Subsec. (c)(1)(E). Pub. L. 102-325, Sec. 464(e), struck out
    "unless the borrower is a minor and the note or other evidence of
    obligation executed by him would not, under applicable law, create
    a binding obligation," before "shall provide".
      Subsec. (c)(2)(A). Pub. L. 102-325, Sec. 464(f), amended subpar.
    (A) generally, revising and restating as cls. (i) to (iv)
    provisions formerly contained in cls. (i) to (ix).
      Subsec. (c)(2)(B), (C). Pub. L. 102-325, Sec. 464(g)(1), added
    subpar. (B) and struck out former subpars. (B) and (C) which read
    as follows:
      "(B) Any period during which repayment is deferred under
    subparagraph (A) shall not be included in computing the 10-year
    maximum period provided for in subparagraph (A) of paragraph (1).
      "(C) No repayment of principal of, or interest on, any loan for
    any period of study, service, or disability described in
    subparagraph (A) or any combination thereof shall begin until 6
    months after the completion of such period of study, service,
    disability, or combination thereof."
      Subsec. (c)(4) to (6). Pub. L. 102-325, Sec. 464(g)(2)-(4), added
    par. (4), redesignated former par. (4) as (5), and added par. (6).
      Subsecs. (e), (f). Pub. L. 102-325, Sec. 464(h), added subsecs.
    (e) and (f).
      1989 - Subsec. (c)(2)(A)(i). Pub. L. 101-239 inserted before
    semicolon at end ", except that no borrower shall be eligible for a
    deferment under this clause, or a loan made under this part (other
    than a loan made under section 1078-2 or 1078-3 of this title),
    while serving in a medical internship or residency program".
      1988 - Subsec. (c)(2)(A)(v). Pub. L. 100-369 substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.
      1987 - Subsec. (c)(2)(A)(vi). Pub. L. 100-50 inserted "or serving
    in an internship or residency program leading to a degree or
    certificate awarded by an institution of higher education, a
    hospital, or a health care facility that offers postgraduate
    training" before semicolon at end.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.
      Amendment by Pub. L. 109-171 applicable with respect to loans for
    which the first disbursement is made on or after July 1, 2001, see
    section 8007(f) of Pub. L. 109-171, set out as a note under section
    1078 of this title.

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-314 applicable with respect to interest,
    and any special allowance under section 1087-1 of this title, that
    accrue for months beginning on or after Oct. 1, 2003, on student
    loans described in section 2174(c) of Title 10, Armed Forces, that
    were made before, on, or after such date to members of the Armed
    Forces who are on active duty (as defined in section 101(d) of
    Title 10) on or after that date, see section 651(e) of Pub. L. 107-
    314, set out as an Effective Date note under section 2174 of Title
    10.

                     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                 
      Section 468 of Pub. L. 102-325, as amended by Pub. L. 102-394,
    title III, Sec. 307(a), Oct. 6, 1992, 106 Stat. 1820, provided
    that: "The changes made in part E of title IV of the Act [20 U.S.C.
    1087aa et seq.] by the amendments made by this part [part E (Secs.
    461-468) of title IV of Pub. L. 102-325, enacting section 1087ii of
    this title and amending sections 1087aa to 1087gg of this title]
    shall take effect on the date of enactment of this Act [July 23,
    1992], except that - 
        "(1) the changes in section 463(a)(2)(B) [20 U.S.C.
      1087cc(a)(2)(B)], relating to the matching of Federal capital
      contributions, shall apply to funds provided for such program for
      the award years beginning on or after July 1, 1993;
        "(2) the changes made in section 464(c)(1)(C) [20 U.S.C.
      1087dd(c)(1)(C)], relating to minimum monthly payments shall
      apply with respect to loans for which the first disbursement is
      made on or after October 1, 1992, to an individual who, on the
      date the loan is made, has no outstanding balance of principal or
      interest owing on any loan made under part E of title IV of the
      Act;
        "(3) the changes made in section 464(c)(2)(A), relating to
      deferments, shall apply with respect to loans for which the first
      disbursement is made on or after July 1, 1993;
        "(4) the changes made in section 467 [20 U.S.C. 1087gg],
      relating to the creation of a Perkins Loan Revolving Fund, shall
      take effect on September 15, 1997; and
        "(5) the changes in section 464(a)(2)(A), (B) and (C) shall not
      apply to any loan made for the award year beginning July 1, 1992
      provided that the loan does not result in a violation of section
      464(a)(2)(A), (B) and (C) as in effect prior to such date of
      enactment."
      [Pub. L. 102-394, title III, Sec. 307(b), Oct. 6, 1992, 106 Stat.
    1820, provided that: "The amendments made by subsection (a)
    [amending section 468 of Pub. L. 102-325, set out above] shall take
    effect as if enacted on July 23, 1992."]

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 applicable to any loan made,
    insured, or guaranteed under this part or part B of this
    subchapter, including a loan made before Dec. 19, 1989, and
    amendment effective Jan. 1, 1990, but inapplicable with respect to
    any portion of a period of deferment granted to a borrower under
    section 1077(a)(2)(C)(i), 1078(b)(1)(M)(i), or 1087dd(c)(2)(A)(i)
    of this title for service in a medical internship or residency
    program completed prior to Dec. 19, 1989, see section 2002(a)(4) of
    Pub. L. 101-239, set out as a note under section 1077 of this
    title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

                              EFFECTIVE DATE                          
      Section effective Oct. 17, 1986, except as otherwise provided,
    see section 2 of Pub. L. 99-498, set out as a note under section
    1001 of this title.
      Section 405(b) of Pub. L. 99-498, as amended by Pub. L. 100-50,
    Sec. 22(d), June 3, 1987, 101 Stat. 361, provided that:
      "(1) Section 462 of the Act [20 U.S.C. 1087bb] shall apply with
    respect to academic year 1988-1989 and succeeding academic years.
      "(2) The changes made in sections 464(c)(1)(A), 464(c)(2), and
    465(a)(2)(E) of the Act [20 U.S.C. 1087dd(c)(1)(A), (2),
    1087ee(a)(2)(E)] shall apply only to loans made to cover the costs
    of instruction for periods of enrollment beginning on or after July
    1, 1987, to individuals who are new borrowers on that date.
      "(3) Section 463(a)(9) and section 463A of the Act [20 U.S.C.
    1087cc(a)(9), 1087cc-1] as amended by this section shall apply only
    to loans made for periods of enrollment beginning on or after July
    1, 1987.
      "(4) For the purpose of this subsection, 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 under part E of title IV of the Act [this part]."

                      CONSTRUCTION OF 2006 AMENDMENT                  
      Nothing in amendment by Pub. L. 109-171 to be construed to
    authorize any refunding of any repayment of a loan, see section
    8007(e) of Pub. L. 109-171, set out as a note under section 1078 of
    this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1087ee                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part D - Federal Perkins Loans

-HEAD-
    Sec. 1087ee. Cancellation of loans for certain public service

-STATUTE-
    (a) Cancellation of percentage of debt based on years of qualifying
      service
      (1) The percent specified in paragraph (3) of this subsection of
    the total amount of any loan made after June 30, 1972, from a
    student loan fund assisted under this part shall be canceled for
    each complete year of service after such date by the borrower under
    circumstances described in paragraph (2).
      (2) Loans shall be canceled under paragraph (1) for service - 
        (A) as a full-time teacher for service in an academic year in a
      public or other nonprofit private elementary or secondary school
      which is in the school district of a local educational agency
      which is eligible in such year for assistance pursuant to title I
      of the Elementary and Secondary Education Act of 1965 [20 U.S.C.
      6301 et seq.], and which for the purpose of this paragraph and
      for that year has been determined by the Secretary (pursuant to
      regulations and after consultation with the State educational
      agency of the State in which the school is located) to be a
      school in which the enrollment of children counted under section
      111(c) of the Elementary and Secondary Education Act of 1965 (!1)
      exceeds 30 percent of the total enrollment of that school;

        (B) as a full-time staff member in a preschool program carried
      on under the Head Start Act [42 U.S.C. 9831 et seq.] which is
      operated for a period which is comparable to a full school year
      in the locality if the salary of such staff member is not more
      than the salary of a comparable employee of the local educational
      agency;
        (C) as a full-time special education teacher, including
      teachers of infants, toddlers, children, or youth with
      disabilities in a public or other nonprofit elementary or
      secondary school system, or as a full-time qualified professional
      provider of early intervention services in a public or other
      nonprofit program under public supervision by the lead agency as
      authorized in section 1435(a)(10) of this title;
        (D) as a member of the Armed Forces of the United States, for
      service that qualifies for special pay under section 310 of title
      37 as an area of hostilities;
        (E) as a volunteer under the Peace Corps Act [22 U.S.C. 2501 et
      seq.] or a volunteer under the Domestic Volunteer Service Act of
      1973 [42 U.S.C. 4950 et seq.];
        (F) as a full-time law enforcement officer or corrections
      officer for service to local, State, or Federal law enforcement
      or corrections agencies;
        (G) as a full-time teacher of mathematics, science, foreign
      languages, bilingual education, or any other field of expertise
      where the State educational agency determines there is a shortage
      of qualified teachers;
        (H) as a full-time nurse or medical technician providing health
      care services; or
        (I) as a full-time employee of a public or private nonprofit
      child or family service agency who is providing, or supervising
      the provision of, services to high-risk children who are from low-
      income communities and the families of such children.

    For the purpose of this paragraph, the term "children with
    disabilities" has the meaning set forth in section 1401 of this
    title.
      (3)(A) The percent of a loan which shall be canceled under
    paragraph (1) of this subsection is - 
        (i) in the case of service described in subparagraph (A), (C),
      (F), (G), (H), or (I) of paragraph (2), at the rate of 15 percent
      for the first or second year of such service, 20 percent for the
      third or fourth year of such service, and 30 percent for the
      fifth year of such service;
        (ii) in the case of service described in subparagraph (B) of
      paragraph (2), at the rate of 15 percent for each year of such
      service;
        (iii) in the case of service described in subparagraph (D) of
      paragraph (2), not to exceed a total of 50 percent of such loan
      at the rate of 12 1/2  percent for each year of qualifying
      service; or
        (iv) in the case of service described in subparagraph (E) of
      paragraph (2) at the rate of 15 percent for the first or second
      year of such service and 20 percent for the third or fourth year
      of such service.

      (B) If a portion of a loan is canceled under this subsection for
    any year, the entire amount of interest on such loan which accrues
    for such year shall be canceled.
      (C) Nothing in this subsection shall be construed to authorize
    refunding of any repayment of a loan.
      (4) For the purpose of this subsection, the term "year" where
    applied to service as a teacher means academic year as defined by
    the Secretary.
      (5) The amount of a loan, and interest on a loan, which is
    canceled under this section shall not be considered income for
    purposes of title 26.
      (6) No borrower may, for the same volunteer service, receive a
    benefit under both this section and subtitle D of title I of the
    National and Community Service Act of 1990 [42 U.S.C. 12601 et
    seq.].
      (7) An individual with an outstanding loan obligation under this
    part who performs service of any type that is described in
    paragraph (2) as in effect on October 7, 1998, shall be eligible
    for cancellation under this section for such service
    notwithstanding any contrary provision of the promissory note under
    which the loan or loans were made, and notwithstanding any
    amendment (or effective date provision relating to any amendment)
    to this section made prior to the date of such service.
    (b) Reimbursement for cancellation
      The Secretary shall pay to each institution for each fiscal year
    an amount equal to the aggregate of the amounts of loans from its
    student loan fund which are canceled pursuant to this section for
    such year, minus an amount equal to the aggregate of the amounts of
    any such loans so canceled which were made from Federal capital
    contributions to its student loan fund provided by the Secretary
    under section 1087hh of this title. None of the funds appropriated
    pursuant to section 1087aa(b) of this title shall be available for
    payments pursuant to this subsection. To the extent feasible, the
    Secretary shall pay the amounts for which any institution qualifies
    under this subsection not later than 3 months after the institution
    files an institutional application for campus-based funds.
    (c) Special rules
      (1) List
        If the list of schools in which a teacher may perform service
      pursuant to subsection (a)(2)(A) of this section is not available
      before May 1 of any year, the Secretary may use the list for the
      year preceding the year for which the determination is made to
      make such service determination.
      (2) Continuing eligibility
        Any teacher who performs service in a school which - 
          (A) meets the requirements of subsection (a)(2)(A) of this
        section in any year; and
          (B) in a subsequent year fails to meet the requirements of
        such subsection,

      may continue to teach in such school and shall be eligible for
      loan cancellation pursuant to subsection (a)(1) of this section
      such subsequent years.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 465, as added Pub. L. 99-498, title
    IV, Sec. 405(a), Oct. 17, 1986, 100 Stat. 1451; amended Pub. L. 100-
    50, Sec. 13(j), June 3, 1987, 101 Stat. 349; Pub. L. 100-369, Sec.
    7(c), July 18, 1988, 102 Stat. 837; Pub. L. 101-476, title IX, Sec.
    901(e), Oct. 30, 1990, 104 Stat. 1151; Pub. L. 101-647, title XXI,
    Sec. 2101(a), (b), Nov. 29, 1990, 104 Stat. 4856; Pub. L. 102-119,
    Sec. 26(h), Oct. 7, 1991, 105 Stat. 607; Pub. L. 102-325, title IV,
    Sec. 465(a)-(c), July 23, 1992, 106 Stat. 582, 583; Pub. L. 103-82,
    title I, Sec. 102(c)(3), Sept. 21, 1993, 107 Stat. 824; Pub. L. 103-
    208, Sec. 2(f)(12)-(14), (k)(7), Dec. 20, 1993, 107 Stat. 2471,
    2486; Pub. L. 103-382, title III, Sec. 391(e)(3), Oct. 20, 1994,
    108 Stat. 4022; Pub. L. 105-244, title IV, Sec. 465, Oct. 7, 1998,
    112 Stat. 1728; Pub. L. 108-446, title III, Sec. 305(c)(1), Dec. 3,
    2004, 118 Stat. 2805.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Elementary and Secondary Education Act of 1965, referred to
    in subsec. (a)(2)(A), is Pub. L. 89-10, Apr. 11, 1965, 79 Stat. 27,
    as amended. Title I of the Act is classified generally to
    subchapter I (Sec. 6301 et seq.) 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.
      Section 111(c) of the Elementary and Secondary Education Act of
    1965, referred to in subsec. (a)(2)(A), was classified to section
    2711(c) of this title, prior to its omission in the general
    revision of the Elementary and Secondary Education Act of 1965 by
    Pub. L. 100-297, title I, Sec. 1001, Apr. 28, 1988, 102 Stat. 140.
      The Head Start Act, referred to in subsec. (a)(2)(B), is
    subchapter B (Secs. 635 to 657) of chapter 8 of subtitle A of title
    VI of Pub. L. 97-35, Aug. 13, 1981, 95 Stat. 499, as amended, which
    is classified generally to subchapter II (Sec. 9831 et seq.) of
    chapter 105 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 9801 of Title 42 and Tables.
      The Peace Corps Act, referred to in subsec. (a)(2)(E), is Pub. L.
    87-293, Sept. 22, 1961, 75 Stat. 612, as amended, which is
    classified principally to chapter 34 (Sec. 2501 et seq.) of Title
    22, Foreign Relations and Intercourse. For complete classification
    of this Act to the Code, see Short Title note set out under section
    2501 of Title 22 and Tables.
      The Domestic Volunteer Service Act of 1973, referred to in
    subsec. (a)(2)(E), is Pub. L. 93-113, Oct. 1, 1973, 87 Stat. 394,
    as amended, which is classified principally to chapter 66 (Sec.
    4950 et seq.) of Title 42, The Public Health and Welfare. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 4950 of Title 42 and Tables.
      The National and Community Service Act of 1990, referred to in
    subsec. (a)(6), is Pub. L. 101-610, Nov. 16, 1990, 104 Stat. 3127,
    as amended. Subtitle D of title I of the Act is classified
    generally to division D of subchapter I (Sec. 12601 et seq.) of
    chapter 129 of Title 42. For complete classification of this Act to
    the Code, see Short Title note set out under section 12501 of Title
    42 and Tables.

-COD-
                               CODIFICATION                           
      Amendment by section 2(f)(14) of Pub. L. 103-208 (which was
    effective as if included in Pub. L. 102-325) was executed to this
    section as amended by Pub. L. 102-325 and Pub. L. 103-82, to
    reflect the probable intent of Congress.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087ee, Pub. L. 89-329, title IV, Sec. 465, as
    added Pub. L. 92-318, title I, Sec. 137(b), June 23, 1972, 86 Stat.
    277; amended Pub. L. 95-561, title XIII, Sec. 1323, Nov. 1, 1978,
    92 Stat. 2363; Pub. L. 96-374, title IV, Secs. 442(b)(6), 448(d),
    (e), title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1440,
    1443, 1503, related to cancellation of loans for certain public
    service, prior to the general revision of this part by Pub. L. 99-
    498.

                                AMENDMENTS                            
      2004 - Subsec. (a)(2)(C). Pub. L. 108-446 made technical
    amendment to reference in original act which appears in text as
    reference to section 1435(a)(10) of this title.
      1998 - Subsec. (a)(2). Pub. L. 105-244, Sec. 465(1)(B),
    substituted "section 1401" for "section 1401(a)(1)" in concluding
    provisions.
      Subsec. (a)(2)(C). Pub. L. 105-244, Sec. 465(1)(A), substituted
    "section 1435(a)(10)" for "section 1476(b)(9)".
      Subsec. (a)(7). Pub. L. 105-244, Sec. 465(1)(C), added par. (7).
      Subsec. (b). Pub. L. 105-244, Sec. 465(2), inserted at end "To
    the extent feasible, the Secretary shall pay the amounts for which
    any institution qualifies under this subsection not later than 3
    months after the institution files an institutional application for
    campus-based funds."
      1994 - Subsec. (a)(2)(A). Pub. L. 103-382 substituted "title I of
    the Elementary and Secondary Education Act of 1965" for "chapter 1
    of the Education Consolidation and Improvement Act of 1981".
      1993 - Subsec. (a)(2)(A). Pub. L. 103-208, Sec. 2(k)(7), amended
    Pub. L. 102-325, Sec. 465(a)(1). See 1992 Amendment note below.
      Subsec. (a)(2)(D). Pub. L. 103-208, Sec. 2(f)(12), substituted
    "service" for "services".
      Subsec. (a)(2)(F). Pub. L. 103-208, Sec. 2(f)(13), struck out
    "or" after semicolon at end.
      Subsec. (a)(6). Pub. L. 103-208, Sec. 2(f)(14), realigned margin.
    See Codification note above.
      Pub. L. 103-82 added par. (6).
      1992 - Subsec. (a)(2)(A). Pub. L. 102-325, Sec. 465(a)(1), as
    amended by Pub. L. 103-208, Sec. 2(k)(7), struck out before
    semicolon at end "and such determination shall not be made with
    respect to more than 50 percent of the total number of schools in
    the State receiving assistance under such chapter 1".
      Subsec. (a)(2)(C). Pub. L. 102-325, Sec. 465(a)(2), amended
    subpar. (C) generally. Prior to amendment, subpar. (C) read as
    follows: "as a full-time teacher of children with disabilities in a
    public or other nonprofit elementary or secondary school system;".
      Subsec. (a)(2)(G) to (I). Pub. L. 102-325, Sec. 465(a)(3)-(5),
    added subpars. (G) to (I).
      Subsec. (a)(3)(A)(i). Pub. L. 102-325, Sec. 465(b), substituted
    "(A), (C), (F), (G), (H), or (I)" for "(A), (C), or (F)".
      Subsec. (c). Pub. L. 102-325, Sec. 465(c), added subsec. (c).
      1991 - Subsec. (a)(2). Pub. L. 102-119 substituted "1401(a)(1)"
    for "1401(1)" in last sentence. The references to section 1401
    include the substitution of "Individuals with Disabilities
    Education Act" for "Education of the Handicapped Act" in the
    original.
      1990 - Subsec. (a)(2). Pub. L. 101-476, Sec. 901(e), substituted
    "children with disabilities" for "handicapped children" in two
    places.
      Subsec. (a)(2)(F). Pub. L. 101-647, Sec. 2101(a), which directed
    amendment of subsec. (a)(2) by adding at the end a new subpar. (F),
    was executed by adding subpar. (F) after subpar. (E) and before
    last sentence to reflect the probable intent of Congress.
      Subsec. (a)(3)(A)(i). Pub. L. 101-647, Sec. 2101(b), which
    directed amendment of subsec. (a)(3)(i) by substituting "(A), (C),
    or (F)" for "(A) or (C)", was executed by making the substitution
    in subsec. (a)(3)(A)(i) to reflect the probable intent of Congress.
      1988 - Subsec. (a)(5). Pub. L. 100-369 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.
      1987 - Subsec. (a)(2)(A). Pub. L. 100-50, Sec. 13(j)(1), (2),
    substituted "chapter 1 of the Education Consolidation and
    Improvement Act of 1981" for "title I of the Elementary and
    Secondary Education Act of 1965" and "such chapter 1" for "such
    title I".
      Subsec. (a)(2)(B). Pub. L. 100-50, Sec. 13(j)(3), substituted
    "the Head Start Act" for "section 2809(a)(1) of title 42".

                     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 AMENDMENTS                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.
      Amendment by Pub. L. 103-82 effective Oct. 1, 1993, see section
    123 of Pub. L. 103-82, set out as a note under section 1701 of
    Title 16, Conservation.

                     EFFECTIVE DATE OF 1990 AMENDMENTS                 
      Section 2101(c) of Pub. L. 101-647 provided that: "The amendments
    made by this section [amending this section] shall apply only to
    loans made on or after the date of enactment of this Act [Nov. 29,
    1990] under part E of title IV of the Higher Education Act of 1965
    [this part]."
      Section 1001 of Pub. L. 101-476 provided that: "The amendments
    made by this Act [see Short Title of 1990 Amendment note set out
    under section 1400 of this title] shall take effect October 1,
    1990."

                     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.
      Subsection (a)(2)(E) of this section applicable only to loans
    made to cover the costs of instruction for periods of enrollment
    beginning on or after July 1, 1987, to individuals who are new
    borrowers on that date, see section 405(b) of Pub. L. 99-498, set
    out as a note under section 1087dd of this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1087ff                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part D - Federal Perkins Loans

-HEAD-
    Sec. 1087ff. Distribution of assets from student loan funds

-STATUTE-
    (a) In general
      After September 30, 2003, and not later than March 31, 2004,
    there shall be a capital distribution of the balance of the student
    loan fund established under this part by each institution of higher
    education as follows:
        (1) The Secretary shall first be paid an amount which bears the
      same ratio to the balance in such fund at the close of September
      30, 2003, as the total amount of the Federal capital
      contributions to such fund by the Secretary under this part bears
      to the sum of such Federal contributions and the institution's
      capital contributions to such fund.
        (2) The remainder of such balance shall be paid to the
      institution.
    (b) Distribution of late collections
      After March 31, 2012, each institution with which the Secretary
    has made an agreement under this part, shall pay to the Secretary
    the same proportionate share of amounts received by this
    institution after September 30, 2003, in payment of principal and
    interest on student loans made from the student loan fund
    established pursuant to such agreement (which amount shall be
    determined after deduction of any costs of litigation incurred in
    collection of the principal or interest on loans from the fund and
    not already reimbursed from the fund or from such payments of
    principal or interest), as was determined for the Secretary under
    subsection (a) of this section.
    (c) Distribution of excess capital
      (1) Upon a finding by the institution or the Secretary prior to
    October 1, 2004, that the liquid assets of a student loan fund
    established pursuant to an agreement under this part exceed the
    amount required for loans or otherwise in the foreseeable future,
    and upon notice to such institution or to the Secretary, as the
    case may be, there shall be, subject to such limitations as may be
    included in regulations of the Secretary or in such agreement, a
    capital distribution from such fund. Such capital distribution
    shall be made as follows:
        (A) The Secretary shall first be paid an amount which bears the
      same ratio to the total to be distributed as the Federal capital
      contributions by the Secretary to the student loan fund prior to
      such distribution bear to the sum of such Federal capital
      contributions and the capital contributions to the fund made by
      the institution.
        (B) The remainder of the capital distribution shall be paid to
      the institution.

      (2) No finding that the liquid assets of a student loan fund
    established under this part exceed the amount required under
    paragraph (1) may be made prior to a date which is 2 years after
    the date on which the institution of higher education received the
    funds from such institution's allocation under section 1087bb of
    this title.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 466, as added Pub. L. 99-498, title
    IV, Sec. 405(a), Oct. 17, 1986, 100 Stat. 1453; amended Pub. L. 102-
    325, title IV, Sec. 466, July 23, 1992, 106 Stat. 584; Pub. L. 103-
    208, Sec. 2(f)(15), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 105-
    244, title IV, Sec. 466, Oct. 7, 1998, 112 Stat. 1728.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087ff, Pub. L. 89-329, title IV, Sec. 466, as
    added Pub. L. 92-318, title I, Sec. 137(b), June 23, 1972, 86 Stat.
    278; amended Pub. L. 94-482, title I, Sec. 130(h), Oct. 12, 1976,
    90 Stat. 2147; Pub. L. 96-374, title IV, Sec. 442(c), title XIII,
    Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1440, 1503, related to
    distribution of assets from student loan funds, prior to the
    general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-244, Sec. 466(1)(A), in
    introductory provisions, substituted "2003" for "1996" and "2004"
    for "1997".
      Subsec. (a)(1). Pub. L. 105-244, Sec. 466(1)(B), substituted
    "2003" for "1996".
      Subsec. (b). Pub. L. 105-244, Sec. 466(2), substituted "2012" for
    "2005" and "2003" for "1996".
      Subsec. (c)(1). Pub. L. 105-244, Sec. 466(3), substituted "2004"
    for "1997" in introductory provisions.
      1993 - Subsec. (c)(2). Pub. L. 103-208 realigned margin.
      1992 - Subsec. (b). Pub. L. 102-325, Sec. 466(1), substituted
    "2005" for "1997".
      Subsec. (c). Pub. L. 102-325, Sec. 466(2), designated existing
    provisions as par. (1), redesignated former pars. (1) and (2) as
    subpars. (A) and (B), respectively, and added par. (2).

                     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.

-End-



-CITE-
    20 USC Sec. 1087gg                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part D - Federal Perkins Loans

-HEAD-
    Sec. 1087gg. Collection of defaulted loans: Perkins Loan Revolving
      Fund

-STATUTE-
    (a) Authority of Secretary to collect referred, transferred, or
      assigned loans
      With respect to any loan - 
        (1) which was made under this part, and
        (2) which is referred, transferred, or assigned to the
      Secretary by an institution with an agreement under section
      1087cc(a) of this title,

    the Secretary is authorized to attempt to collect such loan by any
    means authorized by law for collecting claims of the United States
    (including referral to the Attorney General for litigation) and
    under such terms and conditions as the Secretary may prescribe,
    including reimbursement for expenses reasonably incurred in
    attempting such collection.
    (b) Collection of referred, transferred, or assigned loans
      The Secretary shall continue to attempt to collect any loan
    referred, transferred, or assigned under paragraph (5)(A),
    (5)(B)(i), or (6) of section 1087cc(a) (!1) of this title until all
    appropriate collection efforts, as determined by the Secretary,
    have been expended.


-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 467, as added Pub. L. 99-498, title
    IV, Sec. 405(a), Oct. 17, 1986, 100 Stat. 1453; amended Pub. L. 102-
    325, title IV, Sec. 467, July 23, 1992, 106 Stat. 584; Pub. L. 105-
    244, title IV, Sec. 467(a), Oct. 7, 1998, 112 Stat. 1728.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1087cc(a) of this title, referred to in subsec. (b), was
    amended by Pub. L. 105-244, title IV, Sec. 463(a)(3), Oct. 7, 1998,
    112 Stat. 1724, which redesignated pars. (5), (6), and (7) as (4),
    (5), and (6), respectively.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087gg, Pub. L. 89-329, title IV, Sec. 467, as
    added Pub. L. 96-49, Sec. 5(d)(3)(A), Aug. 13, 1979, 93 Stat. 352;
    amended Pub. L. 96-374, title IV, Sec. 445(c), title XIII, Sec.
    1391(a)(1), Oct. 3, 1980, 94 Stat. 1442, 1503; Pub. L. 99-272,
    title XVI, Sec. 16029, Apr. 7, 1986, 100 Stat. 354, related to
    collection of defaulted loans, prior to the general revision of
    this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Subsec. (c). Pub. L. 105-244 struck out heading and text
    of subsec. (c) which established the Perkins Loan Revolving Fund
    and provided for deposits into and payments from the Fund.
      1992 - Pub. L. 102-325 amended section catchline generally,
    inserting ": Perkins Loan Revolving Fund" after "loans" and added
    subsec. (c).

                     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 to this section, relating to
    creation of Perkins Loan Revolving Fund, effective Sept. 15, 1997,
    see section 468(4) of Pub. L. 102-325, set out as a note under
    section 1087dd of this title.

                            TRANSFER OF BALANCE                        
      Pub. L. 105-244, title IV, Sec. 467(b), Oct. 7, 1998, 112 Stat.
    1728, provided that: "Any funds in the Perkins Loan Revolving Fund
    on the date of enactment of this Act [Oct. 7, 1998] shall be
    transferred to and deposited in the Treasury."

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1087hh                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part D - Federal Perkins Loans

-HEAD-
    Sec. 1087hh. General authority of Secretary

-STATUTE-
      In carrying out the provisions of this part, the Secretary is
    authorized - 
        (1) to consent to modification, with respect to rate of
      interest, time of payment of any installment of principal and
      interest or any portion thereof, or any other provision of any
      note evidencing a loan which has been made under this part;
        (2) to enforce, pay, compromise, waive, or release any right,
      title, claim, lien, or demand, however acquired, including any
      equity or any right of redemption;
        (3) to conduct litigation in accordance with the provisions of
      section 1082(a)(2) of this title; and
        (4) to enter into a contract or other arrangement with State or
      nonprofit agencies and, on a competitive basis, with collection
      agencies for servicing and collection of loans under this part.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 468, as added Pub. L. 99-498, title
    IV, Sec. 405(a), Oct. 17, 1986, 100 Stat. 1454.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087hh, Pub. L. 89-329, title IV, Sec. 468, as
    added Pub. L. 96-374, title IV, Sec. 442(a), Oct. 3, 1980, 94 Stat.
    1437, related to alternative source of funds, prior to the general
    revision of this part by Pub. L. 99-498.
      A prior section 1087ii, Pub. L. 89-329, title IV, Sec. 469, as
    added Pub. L. 96-374, title IV, Sec. 442(a), Oct. 3, 1980, 94 Stat.
    1439, related to recapture of current balance of student loan
    funds, prior to the general revision of this part by Pub. L. 99-
    498.

-End-



-CITE-
    20 USC Sec. 1087ii                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part D - Federal Perkins Loans

-HEAD-
    Sec. 1087ii. Definitions

-STATUTE-
    (a) Low-income communities
      For the purpose of this part, the term "low-income communities"
    means communities in which there is a high concentration of
    children eligible to be counted under title I of the Elementary and
    Secondary Education Act of 1965 [20 U.S.C. 6301 et seq.].
    (b) High-risk children
      For the purposes of this part, the term "high-risk children"
    means individuals under the age of 21 who are low-income or at risk
    of abuse or neglect, have been abused or neglected, have serious
    emotional, mental, or behavioral disturbances, reside in placements
    outside their homes, or are involved in the juvenile justice
    system.
    (c) Infants, toddlers, children, and youth with disabilities
      For purposes of this part, the term "infants, toddlers, children,
    and youth with disabilities" means children with disabilities and
    infants and toddlers with disabilities as defined in sections 1401
    and 1432 of this title, respectively, and the term "qualified
    professional provider of early intervention services" has the
    meaning specified in section 1472(2) (!1) of this title.


-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 469, as added Pub. L. 102-325,
    title IV, Sec. 465(d), July 23, 1992, 106 Stat. 583; amended Pub.
    L. 103-382, title III, Sec. 391(e)(4), Oct. 20, 1994, 108 Stat.
    4022; Pub. L. 108-446, title III, Sec. 305(c)(2), Dec. 3, 2004, 118
    Stat. 2805.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Elementary and Secondary Education Act of 1965, referred to
    in subsec. (a), is Pub. L. 89-10, Apr. 11, 1965, 79 Stat. 27, as
    amended. Title I of the Act is classified generally to subchapter I
    (Sec. 6301 et seq.) 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.
      Section 1472(2) of this title, referred to in subsec. (c), was in
    the original a reference to section 672(2) of the Individuals with
    Disabilities Education Act, Pub. L. 91-230, title VI. Section 672
    of Pub. L. 91-230 was repealed by Pub. L. 105-17, title II, Sec.
    203(b), June 4, 1997, 111 Stat. 157. Pub. L. 105-17 enacted a new
    section 672 of Pub. L. 91-230, which is classified to section 1472
    of this title, and which no longer defined "qualified professional
    provider of early intervention services". Subsequently, a general
    amendment by Pub. L. 108-446, title I, Sec. 101, Dec. 3, 2004, 118
    Stat. 2791, enacted a new section 672, which also does not define
    "qualified professional provider of early intervention services".


-MISC1-
                                AMENDMENTS                            
      2004 - Subsec. (c). Pub. L. 108-446 substituted "sections 1401
    and 1432" for "sections 1401(a)(1) and 1472(1)".
      1994 - Subsec. (a). Pub. L. 103-382 substituted "title I" for
    "chapter 1 of title I".

-FOOTNOTE-
    (!1) See References in Text note below.


-End-


-CITE-
    20 USC Part E - Need Analysis                               01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
                          PART E - NEED ANALYSIS                      

-COD-
                               CODIFICATION                           
      This part was added as part F of title IV of Pub. L. 89-329 by
    Pub. L. 99-498, title IV, Sec. 406(a), Oct. 17, 1986, 100 Stat.
    1454. The letter designation of this part was changed from "F" to
    "E" for codification purposes. See Codification note preceding
    section 1087a of this title.

-End-



-CITE-
    20 USC Sec. 1087kk                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087kk. Amount of need

-STATUTE-
      Except as otherwise provided therein, the amount of need of any
    student for financial assistance under this subchapter and part C
    of subchapter I of chapter 34 of title 42 (except subparts (!1) 1
    or 2 of part A of this subchapter) is equal to - 

        (1) the cost of attendance of such student, minus
        (2) the expected family contribution for such student, minus
        (3) estimated financial assistance not received under this
      subchapter and part C of subchapter I of chapter 34 of title 42
      (as defined in section 1087vv(j) of this title).

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 471, as added Pub. L. 99-498, title
    IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1454; amended Pub. L. 102-
    325, title IV, Sec. 471(a), July 23, 1992, 106 Stat. 585; Pub. L.
    105-244, title IV, Sec. 480(a), Oct. 7, 1998, 112 Stat. 1732.)


-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-244 substituted "or 2" for "or 4" in
    introductory provisions.
      1992 - Pub. L. 102-325 amended section generally. Prior to
    amendment, section read as follows: "Except as otherwise provided
    therein, the amount of need of any student for financial assistance
    under this subchapter and part C of subchapter I of chapter 34 of
    title 42 (except subparts 1 and 3 of part A of this subchapter) is
    equal to the cost of attendance of such student minus the expected
    family contribution for such student."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-244, title IV, Sec. 480A, Oct. 7, 1998, 112 Stat.
    1732, provided that:
      "(a) In General. - Except as provided in subsection (b), the
    amendments made by this part [part F (Secs. 471-480A) of title IV
    of Pub. L. 105-244, amending this section and sections 1087ll to
    1087tt and 1087vv of this title] are effective on the date of
    enactment of this Act [Oct. 7, 1998].
      "(b) Provisions Effective for Academic Year 2000-2001, and
    Thereafter. - The amendments made by sections 472, 473, 474, and
    475 [amending sections 1087nn to 1087qq of this title] shall apply
    with respect to determinations of need under part F of title IV of
    the Higher Education Act of 1965 [this part] for academic years
    beginning on or after July 1, 2000."

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Section 471(b) of Pub. L. 102-325 provided that: "The changes
    made in part F of title IV of the Act [this part] by the amendment
    made by this section [amending sections 1087kk to 1087vv of this
    title] shall apply with respect to determinations of need under
    such part F for award years beginning on or after July 1, 1993."

                              EFFECTIVE DATE                          
      Section 406(b)(1)-(3) of Pub. L. 99-498, as amended by Pub. L.
    100-50, Sec. 22(e)(1), (3), June 3, 1987, 101 Stat. 361, provided
    that:
      "(1) Except as provided in paragraphs (2) through (4) - 
        "(A) part F of title IV of the Act [this part] shall apply with
      respect to determinations of need under such title for academic
      years beginning with academic year 1988-1989 and succeeding
      academic years; and
        "(B) for any preceding academic year, determinations of need
      shall be made in accordance with regulations prescribed by the
      Secretary of Education in accordance with the Student Financial
      Assistance Technical Amendments Act of 1982 [Pub. L. 97-301, see
      Short Title of 1982 Amendment note set out under section 1001 of
      this title].
      "(2) With respect to an application filed after the date of
    enactment of this Act [Oct. 17, 1986] for a loan under part B of
    such title [part B of this subchapter] for any academic year
    preceding academic year 1988-1989, any determination of expected
    family contribution shall be made using the system of financial
    need analysis approved by the Secretary of Education for use under
    subpart 2 of part A and parts C and E of such title [subpart 2 of
    part A of this subchapter and part C of subchapter I of chapter 34
    of Title 42, The Public Health and Welfare, and part D of this
    subchapter].
      "(3) For purposes of sections 413D(d)(2)(B) [now 413D(c)(2)(B)],
    442(d)(2)(B) and 462(d)(2)(B) [20 U.S.C. 1070b-3(c)(2)(B), 42
    U.S.C. 2752(d)(2)(B), 20 U.S.C. 1087bb(d)(2)(B)] for any academic
    year preceding academic year 1988-1989, the Secretary shall, in
    lieu of average expected family contribution, use the procedures
    for sampling expected family contribution within income categories
    that was employed for academic year 1986-1987, adjusted to reflect
    changes in data.
      "(4) Section 479B of the Act [20 U.S.C. 1087uu] (as so added)
    shall apply with respect to financial assistance provided for any
    academic year beginning after such date of enactment [Oct. 17,
    1986]."
      [References to subpart 2 of part A of title IV of Pub. L. 89-329
    deemed, after July 23, 1992, to refer to subpart 3 of such part,
    see section 402(b) of Pub. L. 102-325, set out as a note under
    section 1070a-11 of this title.]

     SPECIAL STUDY OF SIMPLIFICATION OF NEED ANALYSIS AND APPLICATION
                             FOR TITLE IV AID
      Pub. L. 108-199, div. E, title III, Sec. 305, Jan. 23, 2004, 118
    Stat. 263, provided that:
      "(a) Study Required. - The Advisory Committee on Student
    Financial Assistance established by section 491 of the Higher
    Education Act of 1965 (20 U.S.C. 1098), hereafter in this section
    referred to as 'the Advisory Committee', shall conduct a thorough
    study of the feasibility of simplifying the need analysis
    methodology for all Federal student financial assistance programs
    and the process of applying for such assistance.
      "(b) Required Subjects of Study. - In performing the study, the
    Advisory Committee shall, at a minimum, examine the following:
        "(1) whether the methodology used to calculate the expected
      family contribution can be simplified without significant adverse
      effects on program intent, costs, integrity, delivery, and
      distribution of awards;
        "(2) whether the number of data elements, and, accordingly, the
      number and complexity of questions asked of students and
      families, used to calculate the expected family contribution can
      be reduced without such adverse effects;
        "(3) whether the procedures for determining such data elements,
      including determining and updating offsets and allowances, is the
      most efficient, effective, and fair means to determine a family's
      available income and assets;
        "(4) whether the methodology used to calculate the expected
      family contribution, specifically the consideration of income
      earned by a dependent student and its effect on Pell grant
      eligibility, is an effective and fair means to determine a
      family's available income and a student's need;
        "(5) whether the nature and timing of the application required
      in section 483 (a)(1) of the Higher Education Act of 1965 (20
      U.S.C. 1090(a)(1)), eligibility and award determination,
      financial aid processing, and funds delivery can be streamlined
      further for students and families, institutions, and States;
        "(6) whether it is feasible to allow students to complete only
      those limited sections of the financial aid application that
      apply to their specific circumstances and the State in which they
      reside;
        "(7) whether a widely disseminated printed form, or the use of
      an Internet or other electronic means, can be developed to notify
      individuals of an estimation of their approximate eligibility for
      grant, work-study, and loan assistance upon completion and
      verification of the simplified application form;
        "(8) whether information provided on other Federal forms (such
      as the form applying for supplemental security income under title
      XVI of the Social Security Act [42 U.S.C. 1381 et seq.], the form
      for applying for food stamps under the Food Stamp Act of 1977 [7
      U.S.C. 2011 et seq.], and the schedule for applying for the
      earned income tax credit under section 32 of the Internal Revenue
      Code of 1986 [26 U.S.C. 32]) that are designed to determine
      eligibility for various Federal need-based assistance programs
      could be used to qualify potential students for the simplified
      needs test; and
        "(9) whether any proposed changes to data elements collected,
      in addition to those used to calculate expected family
      contribution, or any proposed changes to the form's design or the
      process of applying for aid, may have adverse effects on program
      costs, integrity, delivery, or distribution of awards, as well
      as, application development or application processing.
      "(c) Additional Considerations. - In conducting the feasibility
    study, the Advisory Committee's primary objective under this
    subsection shall be simplifying the financial aid application forms
    and process and obtaining a substantial reduction in the number of
    required data items. In carrying out that objective, the Advisory
    Committee shall pay special attention to the needs of low-income
    and moderate-income students and families.
      "(d) Consultation. - 
        "(1) In general. - The Advisory Committee shall consult with a
      broad range of interested parties in higher education, including
      parents and students, high school guidance counselors, financial
      aid and other campus administrators, appropriate State
      administrators, administrators of intervention and outreach
      programs, and appropriate officials from the Department of
      Education.
        "(2) Forms design expert. - With the goal of making significant
      changes to the form to make the questions more easily
      understandable, the Advisory Committee shall consult a forms
      design expert to ensure that its recommendations for revision of
      the application form would assist in making the form easily
      readable and understood by parents, students, and other members
      of the public.
        "(3) Congressional consultation. - The Advisory Committee shall
      consult on a regular basis with the Committee on Education and
      the Workforce of the House of Representatives and the Committee
      on Health, Education, Labor, and Pensions of the Senate in
      carrying out the feasibility study required by this subsection.
        "(4) Departmental consultation. - The Secretary of Education
      shall provide such assistance to the Advisory Committee as is
      requested and practicable in conducting the study required by
      this subsection.
      "(e) Reports. - 
        "(1) Interim report. - The Advisory Committee shall, not later
      than 6 months after the date of enactment of this Act [Jan. 23,
      2004], prepare and submit an interim report containing any such
      legislative changes as the Advisory Committee recommends to
      reform and simplify the needs analysis under part F of title IV
      of the Higher Education Act of 1965 (20 U.S.C. 1087kk et seq.)
      and forms and other requirements under such title to the
      Committee on Education and the Workforce of the House of
      Representatives, the Committee on Health, Education, Labor, and
      Pensions of the Senate, and the Secretary of Education.
        "(2) Final report. - The Advisory Committee shall, not later
      than 1 year after the date of enactment of this Act, prepare and
      submit a full final report on the study, including
      recommendations for regulatory and administrative changes
      required by this section, to the Committee on Education and the
      Workforce of the House of Representatives, the Committee on
      Health, Education, Labor, and Pensions of the Senate, and the
      Secretary of Education.
      "(f) Implementation. - The Secretary of Education shall consult
    with the Committee on Education and the Workforce of the House of
    Representatives and the Committee on Health, Education, Labor, and
    Pensions of the Senate and shall subsequently initiate a redesign
    of the form required by section 483 of the Higher Education Act of
    1965 (20 U.S.C. 1090). Such redesign shall include the testing of
    alternative simplified versions of the free Federal form. The
    Secretary shall keep the Committee on Education and the Workforce
    of the House of Representatives and the Committee on Health,
    Education, Labor, and Pensions of the Senate fully and currently
    informed on the progress of these efforts.
      "(g) Postponement of Tax Table Update Pending Report and
    Implementation. - The Secretary of Education shall not implement or
    enforce for the award year 2004-2005 the annual update to the
    allowances for State and other taxes in the tables used in the
    Federal needs analysis methodology, as prescribed by the Secretary
    on May 30, 2003 (68 Fed. Reg. 32473)."

-FOOTNOTE-
    (!1) So in original. Probably should be "subpart".


-End-



-CITE-
    20 USC Sec. 1087ll                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087ll. Cost of attendance

-STATUTE-
      For the purpose of this subchapter and part C of subchapter I of
    chapter 34 of title 42, the term "cost of attendance" means - 
        (1) tuition and fees normally assessed a student carrying the
      same academic workload as determined by the institution, and
      including costs for rental or purchase of any equipment,
      materials, or supplies required of all students in the same
      course of study;
        (2) an allowance for books, supplies, transportation, and
      miscellaneous personal expenses, including a reasonable allowance
      for the documented rental or purchase of a personal computer, for
      a student attending the institution on at least a half-time
      basis, as determined by the institution;
        (3) an allowance (as determined by the institution) for room
      and board costs incurred by the student which - 
          (A) shall be an allowance determined by the institution for a
        student without dependents residing at home with parents;
          (B) for students without dependents residing in
        institutionally owned or operated housing, shall be a standard
        allowance determined by the institution based on the amount
        normally assessed most of its residents for room and board; and
          (C) for all other students shall be an allowance based on the
        expenses reasonably incurred by such students for room and
        board;

        (4) for less than half-time students (as determined by the
      institution), tuition and fees and an allowance for only - 
          (A) books, supplies, and transportation (as determined by the
        institution);
          (B) dependent care expenses (determined in accordance with
        paragraph (8)); and
          (C) room and board costs (determined in accordance with
        paragraph (3)), except that a student may receive an allowance
        for such costs under this subparagraph for not more than 3
        semesters or the equivalent, of which not more than 2 semesters
        or the equivalent may be consecutive;

        (5) for a student engaged in a program of study by
      correspondence, only tuition and fees and, if required, books and
      supplies, travel, and room and board costs incurred specifically
      in fulfilling a required period of residential training;
        (6) for incarcerated students only tuition and fees and, if
      required, books and supplies;
        (7) for a student enrolled in an academic program in a program
      of study abroad approved for credit by the student's home
      institution, reasonable costs associated with such study (as
      determined by the institution at which such student is enrolled);
        (8) for a student with one or more dependents, an allowance
      based on the estimated actual expenses incurred for such
      dependent care, based on the number and age of such dependents,
      except that - 
          (A) such allowance shall not exceed the reasonable cost in
        the community in which such student resides for the kind of
        care provided; and
          (B) the period for which dependent care is required includes,
        but is not limited to, class-time, study-time, field work,
        internships, and commuting time;

        (9) for a student with a disability, an allowance (as
      determined by the institution) for those expenses related to the
      student's disability, including special services, personal
      assistance, transportation, equipment, and supplies that are
      reasonably incurred and not provided for by other assisting
      agencies;
        (10) for a student receiving all or part of the student's
      instruction by means of telecommunications technology, no
      distinction shall be made with respect to the mode of instruction
      in determining costs;
        (11) for a student engaged in a work experience under a
      cooperative education program, an allowance for reasonable costs
      associated with such employment (as determined by the
      institution);
        (12) for a student who receives a loan under this or any other
      Federal law, or, at the option of the institution, a conventional
      student loan incurred by the student to cover a student's cost of
      attendance at the institution, an allowance for the actual cost
      of any loan fee, origination fee, or insurance premium charged to
      such student or such parent on such loan, or the average cost of
      any such fee or premium charged by the Secretary, lender, or
      guaranty agency making or insuring such loan, as the case may be;
      and
        (13) at the option of the institution, for a student in a
      program requiring professional licensure or certification, the
      one-time cost of obtaining the first professional credentials (as
      determined by the institution).

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 472, as added Pub. L. 99-498, title
    IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1454; amended Pub. L. 102-
    325, title IV, Sec. 471(a), July 23, 1992, 106 Stat. 585; Pub. L.
    103-208, Sec. 2(g)(1), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 105-
    244, title IV, Sec. 471, Oct. 7, 1998, 112 Stat. 1729; Pub. L. 109-
    171, title VIII, Sec. 8016, Feb. 8, 2006, 120 Stat. 172.)


-MISC1-
                                AMENDMENTS                            
      2006 - Par. (4). Pub. L. 109-171, Sec. 8016(1), added par. (4)
    and struck out former par. (4), which read as follows: "for less
    than half-time students (as determined by the institution) tuition
    and fees and an allowance for only books, supplies, and
    transportation (as determined by the institution) and dependent
    care expenses (in accordance with paragraph (8));".
      Par. (13). Pub. L. 109-171, Sec. 8016(2)-(4), added par. (13).
      1998 - Par. (2). Pub. L. 105-244, Sec. 471(1), inserted ",
    including a reasonable allowance for the documented rental or
    purchase of a personal computer," after "personal expenses".
      Par. (3)(A). Pub. L. 105-244, Sec. 471(2)(A), substituted
    "determined by the institution" for "of not less than $1,500".
      Par. (3)(C). Pub. L. 105-244, Sec. 471(2)(B), struck out ",
    except that the amount may not be less than $2,500" after "room and
    board".
      Par. (10). Pub. L. 105-244, Sec. 471(3), substituted a semicolon
    for ", but this paragraph shall not be construed to permit
    including the cost of rental or purchase of equipment;".
      Par. (11). Pub. L. 105-244, Sec. 471(4), substituted "engaged"
    for "placed".
      1993 - Par. (12). Pub. L. 103-208 added par. (12).
      1992 - Pub. L. 102-325 amended section generally, revising and
    restating as pars. (1) to (11) provisions formerly contained in
    pars. (1) to (9).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244 effective Oct. 7, 1998, see section
    480A of Pub. L. 105-244, set out as a note under section 1087kk of
    this title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

-End-



-CITE-
    20 USC Sec. 1087mm                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087mm. Family contribution

-STATUTE-
      For the purpose of this subchapter and part C of subchapter I of
    chapter 34 of title 42, except subpart 2 of part A of this
    subchapter, the term "family contribution" with respect to any
    student means the amount which the student and the student's family
    may be reasonably expected to contribute toward the student's
    postsecondary education for the academic year for which the
    determination is made, as determined in accordance with this part.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 473, as added Pub. L. 99-498, title
    IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1455; amended Pub. L. 102-
    325, title IV, Sec. 471(a), July 23, 1992, 106 Stat. 586; Pub. L.
    105-244, title IV, Sec. 480(b), Oct. 7, 1998, 112 Stat. 1732.)


-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-244 substituted "subpart 2" for "subpart 4".
      1992 - Pub. L. 102-325 amended section generally. Prior to
    amendment, section read as follows: "For the purpose of this
    subchapter and part C of subchapter I of chapter 34 of title 42,
    except subparts 1 and 3 of part A of this subchapter, the term
    'family contribution' with respect to any student means the amount
    which the student and his or her family may be reasonably expected
    to contribute toward his or her postsecondary education for the
    academic year for which the determination is made, as determined in
    accordance with this part."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244 effective Oct. 7, 1998, see section
    480A of Pub. L. 105-244, set out as a note under section 1087kk of
    this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

-End-



-CITE-
    20 USC Sec. 1087nn                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087nn. Determination of expected family contribution; data
      elements

-STATUTE-
    (a) General rule for determination of expected family contribution
      The expected family contribution - 
        (1) for a dependent student shall be determined in accordance
      with section 1087oo of this title;
        (2) for a single independent student or a married independent
      student without dependents (other than a spouse) shall be
      determined in accordance with section 1087pp of this title; and
        (3) for an independent student with dependents other than a
      spouse shall be determined in accordance with section 1087qq of
      this title.
    (b) Data elements
      The following data elements are considered in determining the
    expected family contribution:
        (1) the available income of (A) the student and the student's
      spouse, or (B) the student and the student's parents, in the case
      of a dependent student;
        (2) the number of dependents in the family of the student;
        (3) the number of dependents in the family of the student,
      excluding the student's parents, who are enrolled or accepted for
      enrollment, on at least a half-time basis, in a degree,
      certificate, or other program leading to a recognized educational
      credential at an institution of higher education that is an
      eligible institution in accordance with the provisions of section
      1094 of this title and for whom the family may reasonably be
      expected to contribute to their postsecondary education;
        (4) the net assets of (A) the student and the student's spouse,
      and (B) the student and the student's parents, in the case of a
      dependent student;
        (5) the marital status of the student;
        (6) the age of the older parent, in the case of a dependent
      student, and the student; and
        (7) the additional expenses incurred (A) in the case of a
      dependent student, when both parents of the student are employed
      or when the family is headed by a single parent who is employed,
      or (B) in the case of an independent student, when the student is
      married and the student's spouse is employed, or when the
      employed student qualifies as a surviving spouse or as a head of
      a household under section 2 of title 26.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 474, as added Pub. L. 99-498, title
    IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1456; amended Pub. L. 100-
    369, Sec. 7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102-325,
    title IV, Sec. 471(a), July 23, 1992, 106 Stat. 587; Pub. L. 105-
    244, title IV, Sec. 472, Oct. 7, 1998, 112 Stat. 1729.)


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (b)(3). Pub. L. 105-244 inserted ", excluding the
    student's parents," after "family of the student".
      1992 - Pub. L. 102-325 substituted "Determination of expected
    family contribution; data elements" for "Data elements used in
    determining expected family contribution" in section catchline and
    amended text generally, adding subsec. (a), designating existing
    provisions as subsec. (b) and inserting heading, adding the age of
    the older parent, in the case of a dependent student, and the
    student as a data element and striking out consideration of any
    unusual medical and dental expenses and consideration of the number
    of dependent children other than the student enrolled in a private
    elementary or secondary institution and the unreimbursed tuition
    paid as data elements.
      1988 - Par. (8). Pub. L. 100-369 substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244, effective Oct. 7, 1998, and
    applicable with respect to determinations of need under this part
    for academic years beginning on or after July 1, 2000, see section
    480A of Pub. L. 105-244, set out as a note under section 1087kk of
    this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

-End-



-CITE-
    20 USC Sec. 1087oo                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087oo. Family contribution for dependent students

-STATUTE-
    (a) Computation of expected family contribution
      For each dependent student, the expected family contribution is
    equal to the sum of - 
        (1) the parents' contribution from adjusted available income
      (determined in accordance with subsection (b) of this section);
        (2) the student contribution from available income (determined
      in accordance with subsection (g) of this section); and
        (3) the student contribution from assets (determined in
      accordance with subsection (h) of this section).
    (b) Parents' contribution from adjusted available income
      The parents' contribution from adjusted available income is equal
    to the amount determined by - 
        (1) computing adjusted available income by adding - 
          (A) the parents' available income (determined in accordance
        with subsection (c) of this section); and
          (B) the parents' contribution from assets (determined in
        accordance with subsection (d) of this section);

        (2) assessing such adjusted available income in accordance with
      the assessment schedule set forth in subsection (e) of this
      section; and
        (3) dividing the assessment resulting under paragraph (2) by
      the number of the family members, excluding the student's
      parents, who are enrolled or accepted for enrollment, on at least
      a half-time basis, in a degree, certificate, or other program
      leading to a recognized educational credential at an institution
      of higher education that is an eligible institution in accordance
      with the provisions of section 1094 of this title during the
      award period for which assistance under this subchapter and part
      C of subchapter I of chapter 34 of title 42 is requested;

    except that the amount determined under this subsection shall not
    be less than zero.
    (c) Parents' available income
      (1) In general
        The parents' available income is determined by deducting from
      total income (as defined in section 1087vv of this title) - 
          (A) Federal income taxes;
          (B) an allowance for State and other taxes, determined in
        accordance with paragraph (2);
          (C) an allowance for social security taxes, determined in
        accordance with paragraph (3);
          (D) an income protection allowance, determined in accordance
        with paragraph (4);
          (E) an employment expense allowance, determined in accordance
        with paragraph (5); and
          (F) the amount of any tax credit taken by the parents under
        section 25A of title 26.
      (2) Allowance for State and other taxes
        The allowance for State and other taxes is equal to an amount
      determined by multiplying total income (as defined in section
      1087vv of this title) by a percentage determined according to the
      following table (or a successor table prescribed by the Secretary
      under section 1087rr of this title):



       PERCENTAGES FOR COMPUTATION OF STATE AND OTHER TAX ALLOWANCE   
    --------------------------------------------------------------------
      If parents' State or territory      And parents' total income is -
            of residence is -                                           

                                            less than        $15,000 or 
                                           $15,000 or           more    
    --------------------------------------------------------------------
                                              then the percentage is -      
                                                                        
    Alaska, Puerto Rico, Wyoming                      3                2
    American Samoa, Guam, Louisiana,                  4                3
     Nevada, Texas, Trust Territory,                                    
     Virgin Islands                                                     
    Florida, South Dakota,                            5                4
     Tennessee, New Mexico                                              
    North Dakota, Washington                          6                5
    Alabama, Arizona, Arkansas,                       7                6
     Indiana, Mississippi, Missouri,                                    
     Montana, New Hampshire,                                            
     Oklahoma, West Virginia                                            
    Colorado, Connecticut, Georgia,                   8                7
     Illinois, Kansas, Kentucky                                         
    California, Delaware, Idaho,                      9                8
     Iowa, Nebraska, North Carolina,                                    
     Ohio, Pennsylvania, South                                          
     Carolina, Utah, Vermont,                                           
     Virginia, Canada, Mexico                                           
    Maine, New Jersey                                10                9
    District of Columbia, Hawaii,                    11               10
     Maryland, Massachusetts, Oregon,                                   
     Rhode Island                                                       
    Michigan, Minnesota                              12               11
    Wisconsin                                        13               12
    New York                                         14               13
    Other                                             9                8
    --------------------------------------------------------------------

      (3) Allowance for social security taxes
        The allowance for social security taxes is equal to the amount
      earned by each parent multiplied by the social security
      withholding rate appropriate to the tax year of the earnings, up
      to the maximum statutory social security tax withholding amount
      for that same tax year.
      (4) Income protection allowance
        The income protection allowance is determined by the following
      table (or a successor table prescribed by the Secretary under
      section 1087rr of this title):



                        INCOME PROTECTION ALLOWANCE                    
    --------------------------------------------------------------------
    Family Size (including student): 2 
      Number in College 1: $10,520 
      Number in College 2: $8,720 
      Number in College 3:   
      Number in College 4:   
      Number in College 5:   
      Number in College For each , additional , subtract:: $1,790
    Family Size (including student): 3 
      Number in College 1: 13,100 
      Number in College 2: 11,310 
      Number in College 3: $9,510
    Family Size (including student): 4 
      Number in College 1: 16,180 
      Number in College 2: 14,380 
      Number in College 3: 12,590 
      Number in College 4: $10,790
    Family Size (including student): 5 
      Number in College 1: 19,090 
      Number in College 2: 17,290 
      Number in College 3: 15,500 
      Number in College 4: 13,700 
      Number in College 5: $11,910
    Family Size (including student): 6 
      Number in College 1: 22,330 
      Number in College 2: 20,530 
      Number in College 3: 18,740 
      Number in College 4: 16,940 
      Number in College 5: 15,150
    Family Size (including student): For each additional add: 
      Number in College 1:  2,520 
      Number in College 2:  2,520 
      Number in College 3:  2,520 
      Number in College 4:  2,520 
      Number in College 5:  2,520
    --------------------------------------------------------------------

      (5) Employment expense allowance
        The employment expense allowance is determined as follows (or
      using a successor provision prescribed by the Secretary under
      section 1087rr of this title):
          (A) If both parents were employed in the year for which their
        income is reported and both have their incomes reported in
        determining the expected family contribution, such allowance is
        equal to the lesser of $2,500 or 35 percent of the earned
        income of the parent with the lesser earned income.
          (B) If a parent qualifies as a surviving spouse or as a head
        of household as defined in section 2 of title 26, such
        allowance is equal to the lesser of $2,500 or 35 percent of
        such parent's earned income.
    (d) Parents' contribution from assets
      (1) In general
        The parents' contribution from assets is equal to - 
          (A) the parental net worth (determined in accordance with
        paragraph (2)); minus
          (B) the education savings and asset protection allowance
        (determined in accordance with paragraph (3)); multiplied by
          (C) the asset conversion rate (determined in accordance with
        paragraph (4)), except that the result shall not be less than
        zero.
      (2) Parental net worth
        The parental net worth is calculated by adding - 
          (A) the current balance of checking and savings accounts and
        cash on hand;
          (B) the net value of investments and real estate, excluding
        the net value of the principal place of residence; and
          (C) the adjusted net worth of a business or farm, computed on
        the basis of the net worth of such business or farm (hereafter
        in this subsection referred to as "NW"), determined in
        accordance with the following table (or a successor table
        prescribed by the Secretary under section 1087rr of this
        title), except as provided under section 1087vv(f) of this
        title:



                 ADJUSTED NET WORTH OF A BUSINESS OR FARM             
    --------------------------------------------------------------------
     If the net worth of a business      Then the adjusted net worth is:
              or farm is -                                              
    --------------------------------------------------------------------
    Less than $1                        $0                              
    $1-$75,000                          40 percent of NW                
    $75,001-$225,000                    $30,000 plus 50 percent of NW   
                                         over $75,000                   
    $225,001-$375,000                   $105,000 plus 60 percent of NW  
                                         over $225,000                  
    $375,001 or more                    $195,000 plus 100 percent of NW 
                                         over $375,000                  
    --------------------------------------------------------------------

      (3) Education savings and asset protection allowance
        The education savings and asset protection allowance is
      calculated according to the following table (or a successor table
      prescribed by the Secretary under section 1087rr of this title):



    EDUCATION SAVINGS AND ASSET PROTECTION ALLOWANCES FOR FAMILIES AND
                                 STUDENTS
    --------------------------------------------------------------------
     If the age of the oldest parent              And there are         
                   is -                                                 

                                           two parents       one parent 
    --------------------------------------------------------------------
                                              then the allowance is -       
                                                                        
    25 or less                           $  0              $0           
    26                                   2,200             1,600        
    27                                   4,300             3,200        
    28                                   6,500             4,700        
    29                                   8,600             6,300        
    30                                   10,800            7,900        
    31                                   13,000            9,500        
    32                                   15,100            11,100       
    33                                   17,300            12,600       
    34                                   19,400            14,200       
    35                                   21,600            15,800       
    36                                   23,800            17,400       
    37                                   25,900            19,000       
    38                                   28,100            20,500       
    39                                   30,200            22,100       
    40                                   32,400            23,700       
    41                                   33,300            24,100       
    42                                   34,100            24,700       
    43                                   35,000            25,200       
    44                                   35,700            25,800       
    45                                   36,600            26,300       
    46                                   37,600            26,900       
    47                                   38,800            27,600       
    48                                   39,800            28,200       
    49                                   40,800            28,800       
    50                                   41,800            29,500       
    51                                   43,200            30,200       
    52                                   44,300            31,100       
    53                                   45,700            31,800       
    54                                   47,100            32,600       
    55                                   48,300            33,400       
    56                                   49,800            34,400       
    57                                   51,300            35,200       
    58                                   52,900            36,200       
    59                                   54,800            37,200       
    60                                   56,500            38,100       
    61                                   58,500            39,200       
    62                                   60,300            40,300       
    63                                   62,400            41,500       
    64                                   64,600            42,800       
    65 or more                           66,800            44,000       
    --------------------------------------------------------------------

      (4) Asset conversion rate
        The asset conversion rate is 12 percent.
    (e) Assessment schedule
      The adjusted available income (as determined under subsection
    (b)(1) of this section and hereafter in this subsection referred to
    as "AAI") is assessed according to the following table (or a
    successor table prescribed by the Secretary under section 1087rr of
    this title):



         PARENTS' ASSESSMENT FROM ADJUSTED AVAILABLE INCOME (AAI)     
    --------------------------------------------------------------------
          If AAI is -                   Then the assessment is -        
    --------------------------------------------------------------------
    Less than -$3,409           -$750                                   
    -$3,409 to $9,400           22% of AAI                              
    $9,401 to $11,800           $2,068 + 25% of AAI over $9,400         
    $11,801 to $14,200          $2,668 + 29% of AAI over $11,800        
    $14,201 to $16,600          $3,364 + 34% of AAI over $14,200        
    $16,601 to $19,000          $4,180 + 40% of AAI over $16,600        
    $19,001 or more             $5,140 + 47% of AAI over $19,000        
    --------------------------------------------------------------------

    (f) Computations in case of separation, divorce, remarriage, or
      death
      (1) Divorced or separated parents
        Parental income and assets for a student whose parents are
      divorced or separated is determined under the following
      procedures:
          (A) Include only the income and assets of the parent with
        whom the student resided for the greater portion of the 12-
        month period preceding the date of the application.
          (B) If the preceding criterion does not apply, include only
        the income and assets of the parent who provided the greater
        portion of the student's support for the 12-month period
        preceding the date of application.
          (C) If neither of the preceding criteria apply, include only
        the income and assets of the parent who provided the greater
        support during the most recent calendar year for which parental
        support was provided.
      (2) Death of a parent
        Parental income and assets in the case of the death of any
      parent is determined as follows:
          (A) If either of the parents has died, the student shall
        include only the income and assets of the surviving parent.
          (B) If both parents have died, the student shall not report
        any parental income or assets.
      (3) Remarried parents
        If a parent whose income and assets are taken into account
      under paragraph (1) of this subsection, or if a parent who is a
      widow or widower and whose income is taken into account under
      paragraph (2) of this subsection, has remarried, the income of
      that parent's spouse shall be included in determining the
      parent's adjusted available income only if - 
          (A) the student's parent and the stepparent are married as of
        the date of application for the award year concerned; and
          (B) the student is not an independent student.
    (g) Student contribution from available income
      (1) In general
        The student contribution from available income is equal to - 
          (A) the student's total income (determined in accordance with
        section 1087vv of this title); minus
          (B) the adjustment to student income (determined in
        accordance with paragraph (2)); multiplied by
          (C) the assessment rate as determined in paragraph (5);

      except that the amount determined under this subsection shall not
      be less than zero.
      (2) Adjustment to student income
        The adjustment to student income is equal to the sum of - 
          (A) Federal income taxes of the student;
          (B) an allowance for State and other income taxes (determined
        in accordance with paragraph (3));
          (C) an allowance for social security taxes determined in
        accordance with paragraph (4);
          (D) an income protection allowance of $3,000 (or a successor
        amount prescribed by the Secretary under section 1087rr of this
        title);
          (E) the amount of any tax credit taken by the student under
        section 25A of title 26; and
          (F) an allowance for parents' negative available income,
        determined in accordance with paragraph (6).
      (3) Allowance for State and other income taxes
        The allowance for State and other income taxes is equal to an
      amount determined by multiplying total income (as defined in
      section 1087vv of this title) by a percentage determined
      according to the following table (or a successor table prescribed
      by the Secretary under section 1087rr of this title):



       PERCENTAGES FOR COMPUTATION OF STATE AND OTHER TAX ALLOWANCE   
    --------------------------------------------------------------------
         If the students' State or territory of          The percentage 
                     residence is -                           is -      
    --------------------------------------------------------------------
    Alaska, American Samoa, Florida, Guam, Nevada,                     0
     South Dakota, Tennessee, Texas, Trust                              
     Territory, Virgin Islands, Washington, Wyoming                     
    Connecticut, Louisiana, Puerto Rico                                1
    Arizona, New Hampshire, New Mexico, North                          2
     Dakota                                                             
    Alabama, Colorado, Illinois, Indiana, Kansas,                      3
     Mississippi, Missouri, Montana, Nebraska, New                      
     Jersey, Oklahoma                                                   
    Arkansas, Georgia, Iowa, Kentucky, Maine,                          4
     Pennsylvania, Utah, Vermont, Virginia, West                        
     Virginia, Canada, Mexico                                           
    California, Idaho, Massachusetts, North                            5
     Carolina, Ohio, Rhode Island, South Carolina                       
    Hawaii, Maryland, Michigan, Wisconsin                              6
    Delaware, District of Columbia, Minnesota,                         7
     Oregon                                                             
    New York                                                           8
    Other                                                              4
    --------------------------------------------------------------------

      (4) Allowance for social security taxes
        The allowance for social security taxes is equal to the amount
      earned by the student multiplied by the social security
      withholding rate appropriate to the tax year of the earnings, up
      to the maximum statutory social security tax withholding amount
      for that same tax year.
      (5) Assessment of available income
        The student's available income (determined in accordance with
      paragraph (1) of this subsection) is assessed at 50 percent.
      (6) Allowance for parents' negative available income
        The allowance for parents' negative available income is the
      amount, if any, by which the sum of the amounts deducted under
      subparagraphs (A) through (F) of subsection (c)(1) of this
      section exceeds the sum of the parents' total income (as defined
      in section 1087vv of this title) and the parents' contribution
      from assets (as determined in accordance with subsection (d) of
      this section).
    (h) Student contribution from assets
      The student contribution from assets is determined by calculating
    the net assets of the student and multiplying such amount by 20
    percent, except that the result shall not be less than zero.
    (i) Adjustments to parents' contribution for enrollment periods
      other than 9 months for purposes other than subpart 2 of part A
      of this subchapter
      For periods of enrollment other than 9 months, the parents'
    contribution from adjusted available income (as determined under
    subsection (b) of this section) is determined as follows for
    purposes other than subpart 2 of part A of this subchapter:
        (1) For periods of enrollment less than 9 months, the parents'
      contribution from adjusted available income is divided by 9 and
      the result multiplied by the number of months enrolled.
        (2) For periods of enrollment greater than 9 months - 
          (A) the parents' adjusted available income (determined in
        accordance with subsection (b)(1) of this section) is increased
        by the difference between the income protection allowance
        (determined in accordance with subsection (c)(4) of this
        section) for a family of four and a family of five, each with
        one child in college;
          (B) the resulting revised parents' adjusted available income
        is assessed according to subsection (e) of this section and
        adjusted according to subsection (b)(3) of this section to
        determine a revised parents' contribution from adjusted
        available income;
          (C) the original parents' contribution from adjusted
        available income is subtracted from the revised parents'
        contribution from adjusted available income, and the result is
        divided by 12 to determine the monthly adjustment amount; and
          (D) the original parents' contribution from adjusted
        available income is increased by the product of the monthly
        adjustment amount multiplied by the number of months greater
        than 9 for which the student will be enrolled.
    (j) Adjustments to student's contribution for enrollment periods of
      less than nine months
      For periods of enrollment of less than 9 months, the student's
    contribution from adjusted available income (as determined under
    subsection (g) of this section) is determined, for purposes other
    than subpart 2 of part A of this subchapter, by dividing the amount
    determined under such subsection by 9, and multiplying the result
    by the number of months in the period of enrollment.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 475, as added Pub. L. 99-498, title
    IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1456; amended Pub. L. 100-
    50, Sec. 14(1)-(12), June 3, 1987, 101 Stat. 349, 350; Pub. L. 102-
    325, title IV, Sec. 471(a), July 23, 1992, 106 Stat. 587; Pub. L.
    103-208, Sec. 2(g)(2)-(5), Dec. 20, 1993, 107 Stat. 2472; Pub. L.
    105-78, title VI, Sec. 609(g), Nov. 13, 1997, 111 Stat. 1523; Pub.
    L. 105-244, title IV, Sec. 473, Oct. 7, 1998, 112 Stat. 1729; Pub.
    L. 109-171, title VIII, Sec. 8017(a)(1), Feb. 8, 2006, 120 Stat.
    173.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (g)(2)(D). Pub. L. 109-171, Sec. 8017(a)(1)(A),
    substituted "$3,000" for "$2,200".
      Subsec. (h). Pub. L. 109-171, Sec. 8017(a)(1)(B), substituted
    "20" for "35".
      1998 - Subsec. (b)(3). Pub. L. 105-244, Sec. 473(a), which
    directed insertion of ", excluding the student's parents," after
    "number of family members", was executed by making the insertion
    after "number of the family members" to reflect the probable intent
    of Congress.
      Subsec. (g)(2)(D). Pub. L. 105-244, Sec. 473(b)(1)(A),
    substituted "$2,200 (or a successor amount prescribed by the
    Secretary under section 1087rr of this title);" for "$1,750; and".
      Subsec. (g)(2)(F). Pub. L. 105-244, Sec. 473(b)(1)(B), (C), added
    subpar. (F).
      Subsec. (g)(6). Pub. L. 105-244, Sec. 473(b)(2), added par. (6).
      Subsec. (j). Pub. L. 105-244, Sec. 473(c), added subsec. (j).
      1997 - Subsec. (c)(1)(F). Pub. L. 105-78, Sec. 609(g)(1), added
    subpar. (F).
      Subsec. (g)(2)(E). Pub. L. 105-78, Sec. 609(g)(2), added subpar.
    (E).
      1993 - Subsec. (c)(4). Pub. L. 103-208, Sec. 2(g)(2), substituted
    "$9,510" for "9,510" in table.
      Subsec. (f)(3). Pub. L. 103-208, Sec. 2(g)(3), in introductory
    provisions, substituted "If a parent" for "Income in the case of a
    parent", "(1) of this subsection, or if a parent" for "(1) of this
    subsection, or a parent", and "the income" for "is determined as
    follows: The income".
      Subsec. (g)(1)(B). Pub. L. 103-208, Sec. 2(g)(4), inserted
    closing parenthesis after "paragraph (2)".
      Subsec. (g)(3). Pub. L. 103-208, Sec. 2(g)(5), in table added
    last item relating to Other.
      1992 - Pub. L. 102-325 amended section generally, making minor
    changes in subsecs. (a) to (c) and (e) to (g), in subsec. (d)
    substituting provisions relating to parents' contribution from
    assets for provisions relating to parents' income supplemental
    amount from assets, in subsec. (h) substituting provisions relating
    to student contribution from assets for provisions relating to
    student and spouse income supplemental amount from assets, and in
    subsec. (i) substituting provisions relating to adjustments to
    parents' contribution for enrollment periods other than 9 months
    for purposes other than subpart 2 of part A of this subchapter for
    provisions relating to adjustments for enrollment periods other
    than 9 months.
      1987 - Subsec. (c)(2), (4). Pub. L. 100-50, Sec. 14(1),
    substituted "section 1087rr of this title" for "section 1087ss of
    this title".
      Subsec. (c)(7). Pub. L. 100-50, Sec. 14(2), struck out "National"
    before "Center".
      Subsec. (d)(2)(B). Pub. L. 100-50, Sec. 14(3), substituted
    "displaced homemaker" for "dislocated homemaker".
      Subsec. (d)(2)(C). Pub. L. 100-50, Sec. 14(1), substituted
    "section 1087rr of this title" for "section 1087ss of this title".
      Pub. L. 100-50, Sec. 14(4), added table after subpar. (C) and
    struck out former table which read as follows:



                 "ADJUSTED NET WORTH OF A BUSINESS OR FARM             
    --------------------------------------------------------------------
     If the net worth of a business      Then the adjusted net worth is:
              or farm is -                                              
    --------------------------------------------------------------------
    Less than $1                        $0                              
    $1-$65,000                          40 percent of NW                
    $65,001-$195,000                    $26,000 plus 50 percent of NW   
                                         over $65,000                   
    $195,001-$325,000                   $91,000 plus 60 percent of NW   
                                         over $195,000                  
    $325,001 or more                    $169,000 plus 100 percent of NW 
                                         over $325,000".                
    --------------------------------------------------------------------

      Subsec. (d)(4)(B). Pub. L. 100-50, Sec. 14(5), substituted
    "$15,999" for "$15,000".
      Subsec. (d)(4)(C). Pub. L. 100-50, Sec. 14(6), substituted
    "$16,000" for "$15,000" in three places.
      Subsec. (d)(4)(D). Pub. L. 100-50, Sec. 14(7), substituted
    "income is less than zero" for "income is equal to or less than
    zero".
      Subsec. (e). Pub. L. 100-50, Sec. 14(8), inserted a minus sign
    before "$3,409" in two places in table.
      Subsec. (g)(1)(C). Pub. L. 100-50, Sec. 14(9), substituted
    "paragraph (2)" for "paragraph (3)".
      Subsec. (g)(3). Pub. L. 100-50, Sec. 14(10), inserted "(or a
    successor table prescribed by the Secretary under section 1087rr of
    this title)" after "following table".
      Subsec. (h). Pub. L. 100-50, Sec. 14(11), added subsec. (h) and
    struck out former subsec. (h) which read as follows: "The student
    (and spouse) supplemental income amount from assets is determined
    by multiplying by 35 percent the sum of - 
        "(1) the current balance of checking and savings accounts and
      cash on hand; and
        "(2) the net value of investments and real estate, including
      the net value in the principal place of residence except in the
      case of a dislocated worker (certified in accordance with title
      III of the Job Training Partnership Act) or a dislocated
      homemaker (as defined in section 1087vv(e) of this title)."
      Subsec. (i). Pub. L. 100-50, Sec. 14(12), added subsec. (i).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.
      Pub. L. 109-171, title VIII, Sec. 8017(a)(2), Feb. 8, 2006, 120
    Stat. 173, provided that: "The amendments made by paragraph (1)
    [amending this section] shall apply with respect to determinations
    of need for periods of enrollment beginning on or after July 1,
    2007."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244, effective Oct. 7, 1998, and
    applicable with respect to determinations of need under this part
    for academic years beginning on or after July 1, 2000, see section
    480A of Pub. L. 105-244, set out as a note under section 1087kk of
    this title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

-End-



-CITE-
    20 USC Sec. 1087pp                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087pp. Family contribution for independent students without
      dependents other than a spouse

-STATUTE-
    (a) Computation of expected family contribution
      For each independent student without dependents other than a
    spouse, the expected family contribution is determined by - 
        (1) adding - 
          (A) the family's contribution from available income
        (determined in accordance with subsection (b) of this section);
        and
          (B) the family's contribution from assets (determined in
        accordance with subsection (c) of this section);

        (2) dividing the sum resulting under paragraph (1) by the
      number of students who are enrolled or accepted for enrollment,
      on at least a half-time basis, in a degree, certificate, or other
      program leading to a recognized educational credential at an
      institution of higher education that is an eligible institution
      in accordance with the provisions of section 1094 of this title
      during the award period for which assistance under this
      subchapter and part C of subchapter I of chapter 34 of title 42
      is requested; and
        (3) for periods of enrollment of less than 9 months, for
      purposes other than subpart 2 of part A of this subchapter - 
          (A) dividing the quotient resulting under paragraph (2) by 9;
        and
          (B) multiplying the result by the number of months in the
        period of enrollment;

    except that the amount determined under this subsection shall not
    be less than zero.
    (b) Family's contribution from available income
      (1) In general
        The family's contribution from income is determined by - 
          (A) deducting from total income (as defined in section 1087vv
        of this title) - 
            (i) Federal income taxes;
            (ii) an allowance for State and other taxes, determined in
          accordance with paragraph (2);
            (iii) an allowance for social security taxes, determined in
          accordance with paragraph (3);
            (iv) an income protection allowance of the following amount
          (or a successor amount prescribed by the Secretary under
          section 1087rr of this title) - 
              (I) $6,050 for single students;
              (II) $6,050 for married students where both are enrolled
            pursuant to subsection (a)(2) of this section; and
              (III) $9,700 for married students where one is enrolled
            pursuant to subsection (a)(2) of this section;

            (v) in the case where a spouse is present, an employment
          expense allowance, as determined in accordance with paragraph
          (4); and
            (vi) the amount of any tax credit taken under section 25A
          of title 26; and

          (B) assessing such available income in accordance with
        paragraph (5).
      (2) Allowance for State and other taxes
        The allowance for State and other taxes is equal to an amount
      determined by multiplying total income (as defined in section
      1087vv of this title) by a percentage determined according to the
      following table (or a successor table prescribed by the Secretary
      under section 1087rr of this title):



       PERCENTAGES FOR COMPUTATION OF STATE AND OTHER TAX ALLOWANCE   
    --------------------------------------------------------------------
         If the students' State or territory of          The percentage 
                     residence is -                           is -      
    --------------------------------------------------------------------
    Alaska, American Samoa, Florida, Guam, Nevada,                     0
     South Dakota, Tennessee, Texas, Trust                              
     Territory, Virgin Islands, Washington, Wyoming                     
    Connecticut, Louisiana, Puerto Rico                                1
    Arizona, New Hampshire, New Mexico, North                          2
     Dakota                                                             
    Alabama, Colorado, Illinois, Indiana, Kansas,                      3
     Mississippi, Missouri, Montana, Nebraska, New                      
     Jersey, Oklahoma                                                   
    Arkansas, Georgia, Iowa, Kentucky, Maine,                          4
     Pennsylvania, Utah, Vermont, Virginia, West                        
     Virginia, Canada, Mexico                                           
    California, Idaho, Massachusetts, North                            5
     Carolina, Ohio, Rhode Island, South Carolina                       
    Hawaii, Maryland, Michigan, Wisconsin                              6
    Delaware, District of Columbia, Minnesota,                         7
     Oregon                                                             
    New York                                                           8
    Other                                                              4
    --------------------------------------------------------------------

      (3) Allowance for social security taxes
        The allowance for social security taxes is equal to the amount
      earned by the student (and spouse, if appropriate), multiplied by
      the social security withholding rate appropriate to the tax year
      preceding the award year, up to the maximum statutory social
      security tax withholding amount for that same tax year.
      (4) Employment expenses allowance
        The employment expense allowance is determined as follows (or
      using a successor provision prescribed by the Secretary under
      section 1087rr of this title):
          (A) If the student is married and the student's spouse is
        employed in the year for which income is reported, such
        allowance is equal to the lesser of $2,500 or 35 percent of the
        earned income of the student or spouse with the lesser earned
        income.
          (B) If a student is not married, the employment expense
        allowance is zero.
      (5) Assessment of available income
        The family's available income (determined in accordance with
      paragraph (1)(A) of this subsection) is assessed at 50 percent.
    (c) Family contribution from assets
      (1) In general
        The family's contribution from assets is equal to - 
          (A) the family's net worth (determined in accordance with
        paragraph (2)); minus
          (B) the asset protection allowance (determined in accordance
        with paragraph (3)); multiplied by
          (C) the asset conversion rate (determined in accordance with
        paragraph (4));

      except that the family's contribution from assets shall not be
      less than zero.
      (2) Family's net worth
        The family's net worth is calculated by adding - 
          (A) the current balance of checking and savings accounts and
        cash on hand;
          (B) the net value of investments and real estate, excluding
        the net value in the principal place of residence; and
          (C) the adjusted net worth of a business or farm, computed on
        the basis of the net worth of such business or farm (hereafter
        referred to as "NW"), determined in accordance with the
        following table (or a successor table prescribed by the
        Secretary under section 1087rr of this title), except as
        provided under section 1087vv(f) of this title:



                 ADJUSTED NET WORTH OF A BUSINESS OR FARM             
    --------------------------------------------------------------------
     If the net worth of a business      Then the adjusted net worth is 
              or farm is -                              -               
    --------------------------------------------------------------------
    Less than $1                        $0                              
    $1-$75,000                          40 percent of NW                
    $75,001-$225,000                    $30,000 plus 50 percent of NW   
                                         over $75,000                   
    $225,001-$375,000                   $105,000 plus 60 percent of NW  
                                         over $225,000                  
    $375,001 or more                    $195,000 plus 100 percent of NW 
                                         over $375,000                  
    --------------------------------------------------------------------

      (3) Asset protection allowance
        The asset protection allowance is calculated according to the
      following table (or a successor table prescribed by the Secretary
      under section 1087rr of this title):



           ASSET PROTECTION ALLOWANCES FOR FAMILIES AND STUDENTS       
    --------------------------------------------------------------------
     If the age of the student is -             And the student is      

                                             married           single   
    --------------------------------------------------------------------
                                              then the allowance is -       
                                                                        
    25 or less                                     $  0               $0
    26                                            2,200            1,600
    27                                            4,300            3,200
    28                                            6,500            4,700
    29                                            8,600            6,300
    30                                           10,800            7,900
    31                                           13,000            9,500
    32                                           15,100           11,100
    33                                           17,300           12,600
    34                                           19,400           14,200
    35                                           21,600           15,800
    36                                           23,800           17,400
    37                                           25,900           19,000
    38                                           28,100           20,500
    39                                           30,200           22,100
    40                                           32,400           23,700
    41                                           33,300           24,100
    42                                           34,100           24,700
    43                                           35,000           25,200
    44                                           35,700           25,800
    45                                           36,600           26,300
    46                                           37,600           26,900
    47                                           38,800           27,600
    48                                           39,800           28,200
    49                                           40,800           28,800
    50                                           41,800           29,500
    51                                           43,200           30,200
    52                                           44,300           31,100
    53                                           45,700           31,800
    54                                           47,100           32,600
    55                                           48,300           33,400
    56                                           49,800           34,400
    57                                           51,300           35,200
    58                                           52,900           36,200
    59                                           54,800           37,200
    60                                           56,500           38,100
    61                                           58,500           39,200
    62                                           60,300           40,300
    63                                           62,400           41,500
    64                                           64,600           42,800
    65 or more                                   66,800           44,000
    --------------------------------------------------------------------

      (4) Asset conversion rate
        The asset conversion rate is 20 percent.
    (d) Computations in case of separation, divorce, or death
      In the case of a student who is divorced or separated, or whose
    spouse has died, the spouse's income and assets shall not be
    considered in determining the family's contribution from income or
    assets.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 476, as added Pub. L. 99-498, title
    IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1463; amended Pub. L. 100-
    50, Sec. 14(1), (3), (4), (13)-(17), June 3, 1987, 101 Stat. 349,
    351; Pub. L. 102-325, title IV, Sec. 471(a), July 23, 1992, 106
    Stat. 594; Pub. L. 103-208, Sec. 2(g)(6), Dec. 20, 1993, 107 Stat.
    2472; Pub. L. 105-78, title VI, Sec. 609(h), Nov. 13, 1997, 111
    Stat. 1524; Pub. L. 105-244, title IV, Sec. 474, Oct. 7, 1998, 112
    Stat. 1730; Pub. L. 109-171, title VIII, Sec. 8017(b)(1), Feb. 8,
    2006, 120 Stat. 173.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(1)(A)(iv). Pub. L. 109-171, Sec.
    8017(b)(1)(A), substituted "$6,050" for "$5,000" in subcls. (I) and
    (II) and "$9,700" for "$8,000" in subcl. (III).
      Subsec. (c)(4). Pub. L. 109-171, Sec. 8017(b)(1)(B), substituted
    "20" for "35".
      1998 - Subsec. (a)(3). Pub. L. 105-244, Sec. 474(a), added par.
    (3).
      Subsec. (b)(1)(A)(iv). Pub. L. 105-244, Sec. 474(b)(1), in
    introductory provisions, substituted "allowance of the following
    amount (or a successor amount prescribed by the Secretary under
    section 1087rr of this title) - " for "allowance of - ".
      Subsec. (b)(1)(A)(iv)(I), (II). Pub. L. 105-244, Sec. 474(b)(2),
    substituted "$5,000" for "$3,000".
      Subsec. (b)(1)(A)(iv)(III). Pub. L. 105-244, Sec. 474(b)(3),
    substituted "$8,000" for "$6,000".
      1997 - Subsec. (b)(1)(A)(vi). Pub. L. 105-78 added cl. (vi).
      1993 - Subsec. (d). Pub. L. 103-208 added subsec. (d).
      1992 - Pub. L. 102-325 amended section generally, substituting
    provisions relating to family contribution for independent students
    without dependents other than a spouse for provisions relating to
    family contribution for independent students without dependents
    (including a spouse).
      1987 - Subsec. (b)(1)(A), (B). Pub. L. 100-50, Sec. 14(13)(B),
    (C), substituted subpar. (A) and introductory provisions of subpar.
    (B) for introductory provisions of former subpar. (A) which read as
    follows: "computing the student's available taxable income by
    deducting from the student's adjusted gross income - ". Former
    subpar. (B) redesignated (C).
      Subsec. (b)(1)(C). Pub. L. 100-50, Sec. 14(13)(B), redesignated
    subpar. (B) as (C). Former subpar. (C) redesignated (D).
      Subsec. (b)(1)(D). Pub. L. 100-50, Sec. 14(15), which directed
    that subsec. (b)(1)(C) be amended by inserting "plus the amount of
    veterans' benefits paid during the award period under chapters 32,
    34, and 35 of title 28", was executed to subpar. (D) to reflect the
    probable intent of Congress and the intervening redesignation of
    subpar. (C) as (D) by section 14(13)(B) of Pub. L. 100-50.
      Pub. L. 100-50, Sec. 14(13)(A), (B), redesignated subpar. (C) as
    (D) and substituted "subparagraph (C)" for "subparagraph (B)".
      Subsec. (b)(2). Pub. L. 100-50, Sec. 14(1), (14), substituted
    "total income" for "total taxable income" and "section 1087rr of
    this title" for "section 1087ss of this title".
      Subsec. (b)(4)(A). Pub. L. 100-50, Sec. 14(16)(A), substituted
    "$8,600" for "$8,900".
      Subsec. (b)(4)(B). Pub. L. 100-50, Sec. 14(16), substituted
    "$8,600" for "$8,900" in two places and "$6,020" for "$6,230".
      Subsec. (c)(1). Pub. L. 100-50, Sec. 14(17), substituted a
    semicolon for a period at end of subpar. (C) and inserted, after
    subpar. (C), provision that the student's income supplemental
    amount from assets not be less than zero.
      Subsec. (c)(2)(B). Pub. L. 100-50, Sec. 14(3), substituted
    "displaced homemaker" for "dislocated homemaker".
      Subsec. (c)(2)(C). Pub. L. 100-50, Sec. 14(4), added table and
    struck out former table which read as follows:



                 "ADJUSTED NET WORTH OF A BUSINESS OR FARM             
    --------------------------------------------------------------------
     If the net worth of a business      Then the adjusted net worth is 
              or farm is -                              -               
    --------------------------------------------------------------------
    Less than $1                        $0                              
    $1-$65,000                          40 percent of NW                
    $65,001-$195,000                    $26,000 plus 50 percent of NW   
                                         over $65,000                   
    $195,001-$325,000                   $91,000 plus 60 percent of NW   
                                         over $195,000                  
    $325,001 or more                    $169,000 plus 100 percent of NW 
                                         over $325,000".                
    --------------------------------------------------------------------

      Pub. L. 100-50, Sec. 14(1), substituted "section 1087rr of this
    title" for "section 1087ss of this title".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.
      Pub. L. 109-171, title VIII, Sec. 8017(b)(2), Feb. 8, 2006, 120
    Stat. 173, provided that: "The amendments made by paragraph (1)
    [amending this section] shall apply with respect to determinations
    of need for periods of enrollment beginning on or after July 1,
    2007."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244, effective Oct. 7, 1998, and
    applicable with respect to determinations of need under this part
    for academic years beginning on or after July 1, 2000, see section
    480A of Pub. L. 105-244, set out as a note under section 1087kk of
    this title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

-End-



-CITE-
    20 USC Sec. 1087qq                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087qq. Family contribution for independent students with
      dependents other than a spouse

-STATUTE-
    (a) Computation of expected family contribution
      For each independent student with dependents other than a spouse,
    the expected family contribution is equal to the amount determined
    by - 
        (1) computing adjusted available income by adding - 
          (A) the family's available income (determined in accordance
        with subsection (b) of this section); and
          (B) the family's contribution from assets (determined in
        accordance with subsection (c) of this section);

        (2) assessing such adjusted available income in accordance with
      an assessment schedule set forth in subsection (d) of this
      section;
        (3) dividing the assessment resulting under paragraph (2) by
      the number of family members who are enrolled or accepted for
      enrollment, on at least a half-time basis, in a degree,
      certificate, or other program leading to a recognized educational
      credential at an institution of higher education that is an
      eligible institution in accordance with the provisions of section
      1094 of this title during the award period for which assistance
      under this subchapter and part C of subchapter I of chapter 34 of
      title 42 is requested; and
        (4) for periods of enrollment of less than 9 months, for
      purposes other than subpart 2 of part A of this subchapter - 
          (A) dividing the quotient resulting under paragraph (3) by 9;
        and
          (B) multiplying the result by the number of months in the
        period of enrollment;

    except that the amount determined under this subsection shall not
    be less than zero.
    (b) Family's available income
      (1) In general
        The family's available income is determined by deducting from
      total income (as defined in section 1087vv of this title) - 
          (A) Federal income taxes;
          (B) an allowance for State and other taxes, determined in
        accordance with paragraph (2);
          (C) an allowance for social security taxes, determined in
        accordance with paragraph (3);
          (D) an income protection allowance, determined in accordance
        with paragraph (4);
          (E) an employment expense allowance, determined in accordance
        with paragraph (5); and
          (F) the amount of any tax credit taken under section 25A of
        title 26.
      (2) Allowance for State and other taxes
        The allowance for State and other taxes is equal to an amount
      determined by multiplying total income (as defined in section
      1087vv of this title) by a percentage determined according to the
      following table (or a successor table prescribed by the Secretary
      under section 1087rr of this title):



       PERCENTAGES FOR COMPUTATION OF STATE AND OTHER TAX ALLOWANCE   
    --------------------------------------------------------------------
     If student's State or territory      And family's total income is -
            of residence is -                                           

                                            less than        $15,000 or 
                                             $15,000            more    
    --------------------------------------------------------------------
                                              then the percentage is -      
                                                                        
    Alaska, Puerto Rico, Wyoming                      3                2
    American Samoa, Guam, Louisiana,                  4                3
     Nevada, Texas, Trust Territory,                                    
     Virgin Islands                                                     
    Florida, South Dakota,                            5                4
     Tennessee, New Mexico                                              
    North Dakota, Washington                          6                5
    Alabama, Arizona, Arkansas,                       7                6
     Indiana, Mississippi, Missouri,                                    
     Montana, New Hampshire,                                            
     Oklahoma, West Virginia                                            
    Colorado, Connecticut, Georgia,                   8                7
     Illinois, Kansas, Kentucky                                         
    California, Delaware, Idaho,                      9                8
     Iowa, Nebraska, North Carolina,                                    
     Ohio, Pennsylvania, South                                          
     Carolina, Utah, Vermont,                                           
     Virginia, Canada, Mexico                                           
    Maine, New Jersey                                10                9
    District of Columbia, Hawaii,                    11               10
     Maryland, Massachusetts, Oregon,                                   
     Rhode Island                                                       
    Michigan, Minnesota                              12               11
    Wisconsin                                        13               12
    New York                                         14               13
    Other                                             9                8
    --------------------------------------------------------------------

      (3) Allowance for social security taxes
        The allowance for social security taxes is equal to the amount
      estimated to be earned by the student (and spouse, if
      appropriate) multiplied by the social security withholding rate
      appropriate to the tax year preceding the award year, up to the
      maximum statutory social security tax withholding amount for that
      same tax year.
      (4) Income protection allowance
        The income protection allowance is determined by the following
      table (or a successor table prescribed by the Secretary under
      section 1087rr of this title):



                        INCOME PROTECTION ALLOWANCE                    
    --------------------------------------------------------------------
    Family Size (including student): 2 
      Number in College 1: $10,520 
      Number in College 2: $8,720 
      Number in College 3:   
      Number in College 4:   
      Number in College 5:   
      Number in College For each , additional , subtract:: $1,790
    Family Size (including student): 3 
      Number in College 1: 13,100 
      Number in College 2: 11,310 
      Number in College 3: $9,510
    Family Size (including student): 4 
      Number in College 1: 16,180 
      Number in College 2: 14,380 
      Number in College 3: 12,590 
      Number in College 4: $10,790
    Family Size (including student): 5 
      Number in College 1: 19,090 
      Number in College 2: 17,290 
      Number in College 3: 15,500 
      Number in College 4:  13,700 
      Number in College 5: $11,910
    Family Size (including student): 6 
      Number in College 1: 22,330 
      Number in College 2: 20,530 
      Number in College 3: 18,740 
      Number in College 4:  16,940 
      Number in College 5:  15,150
    Family Size (including student): For each additional add: 
      Number in College 1: 2,520 
      Number in College 2: 2,520 
      Number in College 3: 2,520 
      Number in College 4: 2,520 
      Number in College 5: 2,520
    --------------------------------------------------------------------

      (5) Employment expense allowance
        The employment expense allowance is determined as follows (or a
      successor table prescribed by the Secretary under section 1087rr
      of this title):
          (A) If the student is married and the student's spouse is
        employed in the year for which their income is reported, such
        allowance is equal to the lesser of $2,500 or 35 percent of the
        earned income of the student or spouse with the lesser earned
        income.
          (B) If a student qualifies as a surviving spouse or as a head
        of household as defined in section 2 of title 26, such
        allowance is equal to the lesser of $2,500 or 35 percent of the
        student's earned income.
    (c) Family's contribution from assets
      (1) In general
        The family's contribution from assets is equal to - 
          (A) the family net worth (determined in accordance with
        paragraph (2)); minus
          (B) the asset protection allowance (determined in accordance
        with paragraph (3)); multiplied by
          (C) the asset conversion rate (determined in accordance with
        paragraph (4)), except that the result shall not be less than
        zero.
      (2) Family net worth
        The family net worth is calculated by adding - 
          (A) the current balance of checking and savings accounts and
        cash on hand;
          (B) the net value of investments and real estate, excluding
        the net value in the principal place of residence; and
          (C) the adjusted net worth of a business or farm, computed on
        the basis of the net worth of such business or farm (hereafter
        referred to as "NW"), determined in accordance with the
        following table (or a successor table prescribed by the
        Secretary under section 1087rr of this title), except as
        provided under section 1087vv(f) of this title:



                 ADJUSTED NET WORTH OF A BUSINESS OR FARM             
    --------------------------------------------------------------------
     If the net worth of a business      Then the adjusted net worth is 
              or farm is -                              -               
    --------------------------------------------------------------------
    Less than $1                        $0                              
    $1-$75,000                          40 percent of NW                
    $75,001-$225,000                    $30,000 plus 50 percent of NW   
                                         over $75,000                   
    $225,001-$375,000                   $105,000 plus 60 percent of NW  
                                         over $225,000                  
    $375,001 or more                    $195,000 plus 100 percent of NW 
                                         over $375,000                  
    --------------------------------------------------------------------

      (3) Asset protection allowance
        The asset protection allowance is calculated according to the
      following table (or a successor table prescribed by the Secretary
      under section 1087rr of this title):



           ASSET PROTECTION ALLOWANCES FOR FAMILIES AND STUDENTS       
    --------------------------------------------------------------------
     If the age of the student is -             And the student is      

                                             married           single   
    --------------------------------------------------------------------
                                              then the allowance is -       
                                                                        
    25 or less                                     $  0               $0
    26                                            2,200            1,600
    27                                            4,300            3,200
    28                                            6,500            4,700
    29                                            8,600            6,300
    30                                           10,800            7,900
    31                                           13,000            9,500
    32                                           15,100           11,100
    33                                           17,300           12,600
    34                                           19,400           14,200
    35                                           21,600           15,800
    36                                           23,800           17,400
    37                                           25,900           19,000
    38                                           28,100           20,500
    39                                           30,200           22,100
    40                                           32,400           23,700
    41                                           33,300           24,100
    42                                           34,100           24,700
    43                                           35,000           25,200
    44                                           35,700           25,800
    45                                           36,600           26,300
    46                                           37,600           26,900
    47                                           38,800           27,600
    48                                           39,800           28,200
    49                                           40,800           28,800
    50                                           41,800           29,500
    51                                           43,200           30,200
    52                                           44,300           31,100
    53                                           45,700           31,800
    54                                           47,100           32,600
    55                                           48,300           33,400
    56                                           49,800           34,400
    57                                           51,300           35,200
    58                                           52,900           36,200
    59                                           54,800           37,200
    60                                           56,500           38,100
    61                                           58,500           39,200
    62                                           60,300           40,300
    63                                           62,400           41,500
    64                                           64,600           42,800
    65 or more                                   66,800           44,000
    --------------------------------------------------------------------

      (4) Asset conversion rate
        The asset conversion rate is 7 percent.
    (d) Assessment schedule
      The adjusted available income (as determined under subsection
    (a)(1) of this section and hereafter referred to as "AAI") is
    assessed according to the following table (or a successor table
    prescribed by the Secretary under section 1087rr of this title):



              ASSESSMENT FROM ADJUSTED AVAILABLE INCOME (AAI)          
    --------------------------------------------------------------------
          If AAI is -                   Then the assessment is -        
    --------------------------------------------------------------------
    Less than -$3,409           -$750                                   
    -$3,409 to $9,400           22% of AAI                              
    $9,401 to $11,800           $2,068 + 25% of AAI over $9,400         
    $11,801 to $14,200          $2,668 + 29% of AAI over $11,800        
    $14,201 to $16,600          $3,364 + 34% of AAI over $14,200        
    $16,601 to $19,000          $4,180 + 40% of AAI over $16,600        
    $19,001 or more             $5,140 + 47% of AAI over $19,000        
    --------------------------------------------------------------------

    (e) Computations in case of separation, divorce, or death
      In the case of a student who is divorced or separated, or whose
    spouse has died, the spouse's income and assets shall not be
    considered in determining the family's available income or assets.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 477, as added Pub. L. 99-498, title
    IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1465; amended Pub. L. 100-
    50, Sec. 14(1)-(6), (8), (18), (19), June 3, 1987, 101 Stat. 349-
    351; Pub. L. 102-325, title IV, Sec. 471(a), July 23, 1992, 106
    Stat. 597; Pub. L. 103-208, Sec. 2(g)(2), (7), Dec. 20, 1993, 107
    Stat. 2472; Pub. L. 105-78, title VI, Sec. 609(i), Nov. 13, 1997,
    111 Stat. 1524; Pub. L. 105-244, title IV, Sec. 475, Oct. 7, 1998,
    112 Stat. 1730; Pub. L. 109-171, title VIII, Sec. 8017(c)(1), Feb.
    8, 2006, 120 Stat. 173.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (c)(4). Pub. L. 109-171 substituted "7" for "12".
      1998 - Subsec. (a)(4). Pub. L. 105-244 added par. (4).
      1997 - Subsec. (b)(1)(F). Pub. L. 105-78 added subpar. (F).
      1993 - Subsec. (b)(4). Pub. L. 103-208, Sec. 2(g)(2), substituted
    "$9,510" for "9,510" in table.
      Subsec. (e). Pub. L. 103-208, Sec. 2(g)(7), added subsec. (e).
      1992 - Pub. L. 102-325 amended section generally, substituting
    provisions relating to family contribution for independent students
    with dependents other than a spouse for provisions relating to
    family contribution for independent students with dependents
    (including a spouse).
      1987 - Subsec. (a)(1)(C). Pub. L. 100-50, Sec. 14(18), added
    subpar. (C).
      Subsec. (b)(2). Pub. L. 100-50, Sec. 14(1), substituted "section
    1087rr of this title" for "section 1087ss of this title".
      Subsec. (b)(5)(A). Pub. L. 100-50, Sec. 14(19), substituted
    "$2,100" for "$2,000".
      Subsec. (b)(7). Pub. L. 100-50, Sec. 14(2), struck out "National"
    before "Center".
      Subsec. (c)(2)(B). Pub. L. 100-50, Sec. 14(3), substituted
    "displaced homemaker" for "dislocated homemaker".
      Subsec. (c)(2)(C). Pub. L. 100-50, Sec. 14(1), (4), substituted
    "section 1087rr of this title" for "section 1087ss of this title"
    in text, added table, and struck out former table which read as
    follows:



                 "ADJUSTED NET WORTH OF A BUSINESS OR FARM             
    --------------------------------------------------------------------
     If the net worth of a business      Then the adjusted net worth is:
              or farm is -                                              
    --------------------------------------------------------------------
    Less than $1                        $0                              
    $1-$65,000                          40 percent of NW                
    $65,001-$195,000                    $26,000 plus 50 percent of NW   
                                         over $65,000                   
    $195,001-$325,000                   $91,000 plus 60 percent of NW   
                                         over $195,000                  
    $325,001 or more                    $169,000 plus 100 percent of NW 
                                         over $325,000".                
    --------------------------------------------------------------------

      Subsec. (c)(4)(B). Pub. L. 100-50, Sec. 14(5), substituted
    "$15,999" for "$15,000".
      Subsec. (c)(4)(C). Pub. L. 100-50, Sec. 14(6), substituted
    "$16,000" for "$15,000" in three places.
      Subsec. (d). Pub. L. 100-50, Sec. 14(1), (8), substituted
    "section 1087rr of this title" for "section 1087ss of this title"
    in text and inserted a minus sign before "$3,409" in two places in
    table.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.
      Pub. L. 109-171, title VIII, Sec. 8017(c)(2), Feb. 8, 2006, 120
    Stat. 173, provided that: "The amendment made by paragraph (1)
    [amending this section] shall apply with respect to determinations
    of need for periods of enrollment beginning on or after July 1,
    2007."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244, effective Oct. 7, 1998, and
    applicable with respect to determinations of need under this part
    for academic years beginning on or after July 1, 2000, see section
    480A of Pub. L. 105-244, set out as a note under section 1087kk of
    this title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

-End-



-CITE-
    20 USC Sec. 1087rr                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087rr. Regulations; updated tables

-STATUTE-
    (a) Authority to prescribe regulations restricted
      (1) Notwithstanding any other provision of law, the Secretary
    shall not have the authority to prescribe regulations to carry out
    this part except - 
        (A) to prescribe updated tables in accordance with subsections
      (b) through (h) of this section; or
        (B) to propose modifications in the need analysis methodology
      required by this part.

      (2) Any regulation proposed by the Secretary that (A) updates
    tables in a manner that does not comply with subsections (b)
    through (h) of this section, or (B) that proposes modifications
    under paragraph (1)(B) of this subsection, shall not be effective
    unless approved by joint resolution of the Congress by May 1
    following the date such regulations are published in the Federal
    Register in accordance with section 1089 of this title. If the
    Congress fails to approve such regulations by such May 1, the
    Secretary shall publish in the Federal Register in accordance with
    section 1089 of this title updated tables for the applicable award
    year that are prescribed in accordance with subsections (b) through
    (h) of this section.
    (b) Income protection allowance
      (1) Revised tables
        For each academic year after academic year 1993-1994, the
      Secretary shall publish in the Federal Register a revised table
      of income protection allowances for the purpose of sections
      1087oo(c)(4) and 1087qq(b)(4) of this title. Such revised table
      shall be developed by increasing each of the dollar amounts
      contained in the table in each such section by a percentage equal
      to the estimated percentage increase in the Consumer Price Index
      (as determined by the Secretary) between December 1992 and the
      December next preceding the beginning of such academic year, and
      rounding the result to the nearest $10. For the 2007-2008
      academic year, the Secretary shall revise the tables in
      accordance with this paragraph, except that the Secretary shall
      increase the amounts contained in the table in section
      1087qq(b)(4) of this title by a percentage equal to the greater
      of the estimated percentage increase in the Consumer Price Index
      (as determined under the preceding sentence) or 5 percent.
      (2) Revised amounts
        For each academic year after academic year 2007-2008, the
      Secretary shall publish in the Federal Register revised income
      protection allowances for the purpose of sections 1087oo(g)(2)(D)
      and 1087pp(b)(1)(A)(iv) of this title. Such revised allowances
      shall be developed by increasing each of the dollar amounts
      contained in such section by a percentage equal to the estimated
      percentage increase in the Consumer Price Index (as determined by
      the Secretary) between December 2006 and the December next
      preceding the beginning of such academic year, and rounding the
      result to the nearest $10.
    (c) Adjusted net worth of a farm or business
      For each award year after award year 1993-1994, the Secretary
    shall publish in the Federal Register a revised table of adjusted
    net worth of a farm or business for purposes of sections
    1087oo(d)(2)(C), 1087pp(c)(2)(C), and 1087qq(c)(2)(C) of this
    title. Such revised table shall be developed - 
        (1) by increasing each dollar amount that refers to net worth
      of a farm or business by a percentage equal to the estimated
      percentage increase in the Consumer Price Index (as determined by
      the Secretary) between December 1992 and the December next
      preceding the beginning of such award year, and rounding the
      result to the nearest $5,000; and
        (2) by adjusting the dollar amounts "$30,000", "$105,000", and
      "$195,000" to reflect the changes made pursuant to paragraph (1).
    (d) Education savings and asset protection allowance
      For each award year after award year 1993-1994, the Secretary
    shall publish in the Federal Register a revised table of allowances
    for the purpose of sections 1087oo(d)(3), 1087pp(c)(3), and
    1087qq(c)(3) of this title. Such revised table shall be developed
    by determining the present value cost, rounded to the nearest $100,
    of an annuity that would provide, for each age cohort of 40 and
    above, a supplemental income at age 65 (adjusted for inflation)
    equal to the difference between the moderate family income (as most
    recently determined by the Bureau of Labor Statistics), and the
    current average social security retirement benefits. For each age
    cohort below 40, the allowance shall be computed by decreasing the
    allowance for age 40, as updated, by one-fifteenth for each year of
    age below age 40 and rounding the result to the nearest $100. In
    making such determinations - 
        (1) inflation shall be presumed to be 6 percent per year;
        (2) the rate of return of an annuity shall be presumed to be 8
      percent; and
        (3) the sales commission on an annuity shall be presumed to be
      6 percent.
    (e) Assessment schedules and rates
      For each award year after award year 1993-1994, the Secretary
    shall publish in the Federal Register a revised table of
    assessments from adjusted available income for the purpose of
    sections 1087oo(e) and 1087qq(d) of this title. Such revised table
    shall be developed - 
        (1) by increasing each dollar amount that refers to adjusted
      available income by a percentage equal to the estimated
      percentage increase in the Consumer Price Index (as determined by
      the Secretary) between December 1992 and the December next
      preceding the beginning of such academic year, rounded to the
      nearest $100; and
        (2) by adjusting the other dollar amounts to reflect the
      changes made pursuant to paragraph (1).
    (f) "Consumer Price Index" defined
      As used in this section, the term "Consumer Price Index" means
    the Consumer Price Index for All Urban Consumers published by the
    Department of Labor. Each annual update of tables to reflect
    changes in the Consumer Price Index shall be corrected for
    misestimation of actual changes in such Index in previous years.
    (g) State and other tax allowance
      For each award year after award year 1993-1994, the Secretary
    shall publish in the Federal Register a revised table of State and
    other tax allowances for the purpose of sections 1087oo(c)(2),
    1087oo(g)(3), 1087pp(b)(2), and 1087qq(b)(2) of this title. The
    Secretary shall develop such revised table after review of the
    Department of the Treasury's Statistics of Income file and
    determination of the percentage of income that each State's taxes
    represent.
    (h) Employment expense allowance
      For each award year after award year 1993-1994, the Secretary
    shall publish in the Federal Register a revised table of employment
    expense allowances for the purpose of sections 1087oo(c)(5),
    1087pp(b)(4), and 1087qq(b)(5) of this title. Such revised table
    shall be developed by increasing the dollar amount specified in
    sections 1087oo(c)(5)(A), 1087oo(c)(5)(B), 1087pp(b)(4)(A), 1087qq
    (b)(5)(A), and 1087qq(b)(5)(B) of this title to reflect increases
    in the amount and percent of the Bureau of Labor Statistics budget
    of the marginal costs for food away from home, apparel,
    transportation, and household furnishings and operations for a two-
    worker versus one-worker family.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 478, as added Pub. L. 99-498, title
    IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1470; amended Pub. L. 100-
    50, Sec. 14(20)-(22), June 3, 1987, 101 Stat. 351, 352; Pub. L.
    102-325, title IV, Sec. 471(a), July 23, 1992, 106 Stat. 602; Pub.
    L. 103-208, Sec. 2(g)(8), (9), Dec. 20, 1993, 107 Stat. 2472; Pub.
    L. 105-244, title IV, Sec. 476, Oct. 7, 1998, 112 Stat. 1730; Pub.
    L. 109-171, title VIII, Sec. 8017(d), (e), Feb. 8, 2006, 120 Stat.
    173, 174.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(1). Pub. L. 109-171, Sec. 8017(d)(1), inserted
    at end "For the 2007-2008 academic year, the Secretary shall revise
    the tables in accordance with this paragraph, except that the
    Secretary shall increase the amounts contained in the table in
    section 1087qq(b)(4) of this title by a percentage equal to the
    greater of the estimated percentage increase in the Consumer Price
    Index (as determined under the preceding sentence) or 5 percent."
      Subsec. (b)(2). Pub. L. 109-171, Sec. 8017(d)(2), substituted
    "2007-2008" for "2000-2001" and "2006" for "1999".
      Subsec. (h). Pub. L. 109-171, Sec. 8017(e), struck out
    "1087pp(b)(4)(B)," after "1087pp(b)(4)(A)," and substituted "food
    away from home, apparel, transportation, and household furnishings
    and operations" for "meals away from home, apparel and upkeep,
    transportation, and housekeeping services".
      1998 - Subsec. (b). Pub. L. 105-244 designated existing
    provisions as par. (1), inserted heading, and added par. (2).
      1993 - Subsec. (b). Pub. L. 103-208, Sec. 2(g)(8)(A), substituted
    "1993-1994" for "1992-1993".
      Subsec. (c). Pub. L. 103-208, Sec. 2(g)(8), substituted "1993-
    1994" for "1992-1993" in introductory provisions and inserted
    "December" before "1992" in par. (1).
      Subsecs. (d), (e), (g). Pub. L. 103-208, Sec. 2(g)(8)(A),
    substituted "1993-1994" for "1992-1993".
      Subsec. (h). Pub. L. 103-208, Sec. 2(g)(8)(A), (9), substituted
    "1993-1994" for "1992-1993" and "Bureau of Labor Statistics" for
    "Bureau of Labor Standards".
      1992 - Pub. L. 102-325 amended section generally, revising and
    restating as subsecs. (a) to (h) provisions formerly contained in
    subsecs. (a) to (f).
      1987 - Subsec. (c)(2). Pub. L. 100-50, Sec. 14(21), substituted "
    '$24,000', '$84,000', and '$156,000' " for " '$26,000', '$91,000',
    and '$169,000' ".
      Subsec. (d). Pub. L. 100-50, Sec. 14(20), inserted ", rounded to
    the nearest $100," after "present value cost" and "of 40 and above"
    after "each age cohort" in second sentence and, after second
    sentence, inserted "For each age cohort below 40, the asset
    protection allowance shall be computed by decreasing the asset
    protection allowance for age 40, as updated, by one-fifteenth for
    each year of age below age 40 and rounding the result to the
    nearest $100."
      Subsec. (f). Pub. L. 100-50, Sec. 14(22), substituted "Consumer
    Price Index for All Urban Consumers" for "Consumer Price Index for
    Wage Earners and Clerical Workers".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244 effective Oct. 7, 1998, see section
    480A of Pub. L. 105-244, set out as a note under section 1087kk of
    this title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

-End-



-CITE-
    20 USC Sec. 1087ss                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087ss. Simplified needs test

-STATUTE-
    (a) Simplified application section
      (1) In general
        The Secretary shall develop and use an easily identifiable
      simplified application section as part of the common financial
      reporting form prescribed under section 1090(a) of this title for
      families described in subsections (b) and (c) of this section.
      (2) Reduced data requirements
        The simplified application form shall - 
          (A) in the case of a family meeting the requirements of
        subsection (b)(1) of this section, permit such family to submit
        only the data elements required under subsection (b)(2) of this
        section for the purposes of establishing eligibility for
        student financial aid under this part; and
          (B) in the case of a family meeting the requirements of
        subsection (c) of this section, permit such family to be
        treated as having an expected family contribution equal to zero
        for purposes of establishing such eligibility and to submit
        only the data elements required to make a determination under
        subsection (c) of this section.
    (b) Simplified needs test
      (1) Eligibility
        An applicant is eligible to file a simplified form containing
      the elements required by paragraph (2) if - 
          (A) in the case of an applicant who is a dependent student - 
            (i) the student's parents - 
              (I) file, or are eligible to file, a form described in
            paragraph (3);
              (II) certify that the parents are not required to file a
            Federal income tax return; or
              (III) received, or the student received, benefits at some
            time during the previous 12-month period under a means-
            tested Federal benefit program as defined under subsection
            (d); and

            (ii) the total adjusted gross income of the parents
          (excluding any income of the dependent student) is less than
          $50,000; or

          (B) in the case of an applicant who is an independent student
        - 
            (i) the student (and the student's spouse, if any) - 
              (I) files, or is eligible to file, a form described in
            paragraph (3);
              (II) certifies that the student (and the student's
            spouse, if any) is not required to file a Federal income
            tax return; or
              (III) received benefits at some time during the previous
            12-month period under a means-tested Federal benefit
            program as defined under subsection (d); and

            (ii) the adjusted gross income of the student (and the
          student's spouse, if any) is less than $50,000.
      (2) Simplified test elements
        The six elements to be used for the simplified needs analysis
      are - 
          (A) adjusted gross income,
          (B) Federal taxes paid,
          (C) untaxed income and benefits,
          (D) the number of family members,
          (E) the number of family members in postsecondary education,
        and
          (F) an allowance (A) for State and other taxes, as defined in
        section 1087oo(c)(2) of this title for dependent students and
        in section 1087qq(b)(2) of this title for independent students
        with dependents other than a spouse, or (B) for State and other
        income taxes, as defined in section 1087pp(b)(2) of this title
        for independent students without dependents other than a
        spouse.
      (3) Qualifying forms
        In the case of an independent student, the student, or in the
      case of a dependent student, the family, files a form described
      in this subsection, or subsection (c), as the case may be, if the
      student or family, as appropriate, files - 
          (A) a form 1040A or 1040EZ (including any prepared or
        electronic version of such form) required pursuant to title 26;
          (B) a form 1040 (including any prepared or electronic version
        of such form) required pursuant to title 26, except that such
        form shall be considered a qualifying form only if the student
        or family files such form in order to take a tax credit under
        section 25A of title 26, and would otherwise be eligible to
        file a form described in subparagraph (A); or
          (C) an income tax return (including any prepared or
        electronic version of such return) required pursuant to the tax
        code of the Commonwealth of Puerto Rico, Guam, American Samoa,
        the Virgin Islands, the Republic of the Marshall Islands, the
        Federated States of Micronesia, or Palau.
    (c) Zero expected family contribution
      The Secretary shall consider an applicant to have an expected
    family contribution equal to zero if - 
        (1) in the case of a dependent student - 
          (A) the student's parents - 
            (i) file, or are eligible to file, a form described in
          subsection (b)(3);
            (ii) certify that the parents are not required to file a
          Federal income tax return; or
            (iii) received, or the student received, benefits at some
          time during the previous 12-month period under a means-tested
          Federal benefit program as defined under subsection (d); and

          (B) the sum of the adjusted gross income of the parents is
        less than or equal to $20,000; or

        (2) in the case of an independent student with dependents other
      than a spouse - 
          (A) the student (and the student's spouse, if any) - 
            (i) files, or is eligible to file, a form described in
          subsection (b)(3);
            (ii) certifies that the student (and the student's spouse,
          if any) is not required to file a Federal income tax return;
          or
            (iii) received benefits at some time during the previous 12-
          month period under a means-tested Federal benefit program as
          defined under subsection (d); and

          (B) the sum of the adjusted gross income of the student and
        spouse (if appropriate) is less than or equal to $20,000.

    An individual is not required to qualify or file for the earned
    income credit in order to be eligible under this subsection.
    (d) Definition of means-tested Federal benefit program
      In this section, the term "means-tested Federal benefit program"
    means a mandatory spending program of the Federal Government, other
    than a program under this subchapter and part C of subchapter I of
    chapter 34 of title 42, in which eligibility for the program's
    benefits, or the amount of such benefits, are determined on the
    basis of income or resources of the individual or family seeking
    the benefit, and may include such programs as - 
        (1) the supplemental security income program under title XVI of
      the Social Security Act (42 U.S.C. 1381 et seq.);
        (2) the food stamp program under the Food Stamp Act of 1977 (7
      U.S.C. 2011 et seq.);
        (3) the free and reduced price school lunch program established
      under the Richard B. Russell National School Lunch Act (42 U.S.C.
      1751 et seq.);
        (4) the program of block grants for States for temporary
      assistance for needy families established under part A of title
      IV of the Social Security Act (42 U.S.C. 601 et seq.);
        (5) the special supplemental nutrition program for women,
      infants, and children established by section 1786 of title 42;
      and
        (6) other programs identified by the Secretary.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 479, as added Pub. L. 99-498, title
    IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1472; amended Pub. L. 100-
    50, Sec. 14(23)-(25), June 3, 1987, 101 Stat. 352; Pub. L. 100-
    369, Sec. 7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102-26, Sec.
    11, Apr. 9, 1991, 105 Stat. 129; Pub. L. 102-325, title IV, Sec.
    471(a), July 23, 1992, 106 Stat. 604; Pub. L. 103-208, Sec.
    2(g)(10)-(15), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105-244,
    title IV, Sec. 477, Oct. 7, 1998, 112 Stat. 1731; Pub. L. 109-171,
    title VIII, Sec. 8018(a), Feb. 8, 2006, 120 Stat. 174.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsec. (d)(1), (4), 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. Title XVI of the Act is classified generally to
    subchapter XVI (Sec. 1381 et seq.) of chapter 7 of Title 42. For
    complete classification of this Act to the Code, see section 1305
    of Title 42 and Tables.
      The Food Stamp Act of 1977, referred to in subsec. (d)(2), is
    Pub. L. 88-525, Aug. 31, 1964, 78 Stat. 703, as amended, which is
    classified generally to chapter 51 (Sec. 2011 et seq.) of Title 7,
    Agriculture. For complete classification of this Act to the Code,
    see Short Title note set out under section 2011 of Title 7 and
    Tables.
      The Richard B. Russell National School Lunch Act, referred to in
    subsec. (d)(3), 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.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(1)(A)(i). Pub. L. 109-171, Sec.
    8018(a)(1)(A)(i), added cl. (i) and struck out former cl. (i) which
    read as follows: "the student's parents file or are eligible to
    file a form described in paragraph (3) or certify that they are not
    required to file an income tax return and the student files or is
    eligible to file such a form or certifies that the student is not
    required to file an income tax return; and".
      Subsec. (b)(1)(B)(i). Pub. L. 109-171, Sec. 8018(a)(1)(A)(ii),
    added cl. (i) and struck out former cl. (i) which read as follows:
    "the student (and the student's spouse, if any) files or is
    eligible to file a form described in paragraph (3) or certifies
    that the student (and the student's spouse, if any) is not required
    to file an income tax return; and".
      Subsec. (b)(3). Pub. L. 109-171, Sec. 8018(a)(1)(B), in
    introductory provisions substituted "In the case of an independent
    student, the student, or in the case of a dependent student, the
    family, files a form described in this subsection, or subsection
    (c), as the case may be, if the student or family, as appropriate,
    files" for "A student or family files a form described in this
    subsection, or subsection (c) of this section, as the case may be,
    if the student or family, respectively, files".
      Subsec. (c)(1)(A). Pub. L. 109-171, Sec. 8018(a)(2)(A)(i), added
    subpar. (A) and struck out former subpar. (A) which read as
    follows: "the student's parents file, or are eligible to file, a
    form described in subsection (b)(3) of this section, or certify
    that the parents are not required to file an income tax return and
    the student files, or is eligible to file, such a form, or
    certifies that the student is not required to file an income tax
    return; and".
      Subsec. (c)(1)(B). Pub. L. 109-171, Sec. 8018(a)(2)(A)(ii), added
    subpar. (B) and struck out former subpar. (B) which read as
    follows: "the sum of the adjusted gross income of the parents is
    less than or equal to the maximum amount of income (rounded
    annually to the nearest thousand dollars) that may be earned in
    1992 or the current year, whichever is higher, in order to claim
    the maximum Federal earned income credit; or".
      Subsec. (c)(2)(A). Pub. L. 109-171, Sec. 8018(a)(2)(B)(i), added
    subpar. (A) and struck out former subpar. (A) which read as
    follows: "the student (and the student's spouse, if any) files, or
    is eligible to file, a form described in subsection (b)(3) of this
    section, or certifies that the student (and the student's spouse,
    if any) is not required to file an income tax return; and".
      Subsec. (c)(2)(B). Pub. L. 109-171, Sec. 8018(a)(2)(B)(ii), added
    subpar. (B) and struck out former subpar. (B) which read as
    follows: "the sum of the adjusted gross income of the student and
    spouse (if appropriate) is less than or equal to the maximum amount
    of income (rounded annually to the nearest thousand dollars) that
    may be earned in 1992 or the current year, whichever is higher, in
    order to claim the maximum Federal earned income credit."
      Subsec. (d). Pub. L. 109-171, Sec. 8018(a)(3), added subsec. (d).
      1998 - Subsec. (b)(3). Pub. L. 105-244, Sec. 477(1)(A),
    substituted "this subsection, or subsection (c) of this section, as
    the case may be," for "this paragraph" in introductory provisions.
      Subsec. (b)(3)(A). Pub. L. 105-244, Sec. 477(1)(B), struck out
    "or" at end.
      Subsec. (b)(3)(B), (C). Pub. L. 105-244, Sec. 477(1)(C), (D),
    added subpar. (B) and redesignated former subpar. (B) as (C).
      Subsec. (c)(1)(A). Pub. L. 105-244, Sec. 477(2)(A), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "the student's parents were not required to file an income
    tax return under section 6012(a)(1) of title 26; and".
      Subsec. (c)(2)(A). Pub. L. 105-244, Sec. 477(2)(B), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "the student (and the student's spouse, if any) was not
    required to file an income tax return under section 6012(a)(1) of
    title 26; and".
      1993 - Subsec. (a)(1). Pub. L. 103-208, Sec. 2(g)(10), inserted
    "of" after "(c)".
      Subsec. (b)(1)(B)(i). Pub. L. 103-208, Sec. 2(g)(11), inserted
    "(and the student's spouse, if any)" after "student" in two places
    and struck out "such" before "an income tax return".
      Subsec. (b)(2). Pub. L. 103-208, Sec. 2(g)(12), (13), substituted
    "six elements" for "five elements" in introductory provisions and a
    comma for semicolon in subpar. (E).
      Subsec. (b)(3)(A). Pub. L. 103-208, Sec. 2(g)(14)(A), inserted
    "(including any prepared or electronic version of such form)"
    before "required".
      Subsec. (b)(3)(B). Pub. L. 103-208, Sec. 2(g)(14)(B), inserted
    "(including any prepared or electronic version of such return)"
    before "required".
      Subsec. (c)(1)(A). Pub. L. 103-208, Sec. 2(g)(15)(A), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "the student's parents did not file, and were not required
    to file, a form 1040 required pursuant to title 26; and".
      Subsec. (c)(1)(B). Pub. L. 103-208, Sec. 2(g)(15)(C), inserted
    "in 1992 or the current year, whichever is higher," after "that may
    be earned".
      Subsec. (c)(2)(A). Pub. L. 103-208, Sec. 2(g)(15)(B), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "the student (and the student's spouse, if any) did not
    file, and was not required to file, a form 1040 required pursuant
    to title 26; and".
      Subsec. (c)(2)(B). Pub. L. 103-208, Sec. 2(g)(15)(C), inserted
    "in 1992 or the current year, whichever is higher," after "that may
    be earned".
      1992 - Pub. L. 102-325 amended section generally, substituting
    present provisions for provisions which related to: in subsec. (a),
    analysis applicable to all title IV programs; in subsec. (b),
    elements in tests; and in subsec. (c), simplified application form.
      1991 - Subsec. (a). Pub. L. 102-26 inserted before period at end
    ", or who file an income tax return pursuant to the tax code of the
    Commonwealth of Puerto Rico or who are not required to file
    pursuant to that tax code".
      1988 - Subsec. (a). Pub. L. 100-369 substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.
      1987 - Subsec. (a). Pub. L. 100-50, Sec. 14(23), substituted
    "subsection (b) of this section" for "paragraph (2)", "families (1)
    who" for "families which", and "and (2) who file a form 1040A or
    1040EZ pursuant to title 26, or are not required to file pursuant
    to such title" for "and which file a form 1040A pursuant to title
    26".
      Subsec. (b)(2). Pub. L. 100-50, Sec. 14(24)(A), struck out "and
    State" after "Federal".
      Subsec. (b)(6). Pub. L. 100-50, Sec. 14(24)(B)-(D), added par.
    (6).
      Subsec. (c). Pub. L. 100-50, Sec. 14(25), added subsec. (c).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244 effective Oct. 7, 1998, see section
    480A of Pub. L. 105-244, set out as a note under section 1087kk of
    this title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

                    EVALUATION OF SIMPLIFIED NEEDS TEST                
      Pub. L. 109-171, title VIII, Sec. 8018(b), Feb. 8, 2006, 120
    Stat. 175, provided that:
      "(1) Eligibility guidelines. - The Secretary of Education shall
    regularly evaluate the impact of the eligibility guidelines in
    subsections (b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A) of
    section 479 of the Higher Education Act of 1965 (20 U.S.C.
    1087ss(b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A)).
      "(2) Means-tested federal benefit program. - For each 3-year
    period, the Secretary of Education shall evaluate the impact of
    including the receipt of benefits by a student or parent under a
    means-tested Federal benefit program (as defined in section 479(d)
    of the Higher Education Act of 1965 (20 U.S.C. 1087ss(d))[)] as a
    factor in determining eligibility under subsections (b) and (c) of
    section 479 of the Higher Education Act of 1965 (20 U.S.C.
    1087ss(b) and (c))."

-End-



-CITE-
    20 USC Sec. 1087tt                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087tt. Discretion of student financial aid administrators

-STATUTE-
    (a) In general
      Nothing in this part shall be interpreted as limiting the
    authority of the financial aid administrator, on the basis of
    adequate documentation, to make adjustments on a case-by-case basis
    to the cost of attendance or the values of the data items required
    to calculate the expected student or parent contribution (or both)
    to allow for treatment of an individual eligible applicant with
    special circumstances. However, this authority shall not be
    construed to permit aid administrators to deviate from the
    contributions expected in the absence of special circumstances.
    Special circumstances may include tuition expenses at an elementary
    or secondary school, medical or dental expenses not covered by
    insurance, unusually high child care costs, recent unemployment of
    a family member, the number of parents enrolled at least half-time
    in a degree, certificate, or other program leading to a recognized
    educational credential at an institution with a program
    participation agreement under section 1094 of this title, or other
    changes in a family's income, a family's assets, or a student's
    status. Special circumstances shall be conditions that
    differentiate an individual student from a class of students rather
    than conditions that exist across a class of students. Adequate
    documentation for such adjustments shall substantiate such special
    circumstances of individual students. In addition, nothing in this
    subchapter and part C of subchapter I of chapter 34 of title 42
    shall be interpreted as limiting the authority of the student
    financial aid administrator in such cases to request and use
    supplementary information about the financial status or personal
    circumstances of eligible applicants in selecting recipients and
    determining the amount of awards under this subchapter and part C
    of subchapter I of chapter 34 of title 42. No student or parent
    shall be charged a fee for collecting, processing, or delivering
    such supplementary information.
    (b) Adjustments to assets taken into account
      A student financial aid administrator shall be considered to be
    making a necessary adjustment in accordance with subsection (a) of
    this section if - 
        (1) the administrator makes adjustments excluding from family
      income any proceeds of a sale of farm or business assets of a
      family if such sale results from a voluntary or involuntary
      foreclosure, forfeiture, or bankruptcy or an involuntary
      liquidation; or
        (2) the administrator makes adjustments in the award level of a
      student with a disability so as to take into consideration the
      additional costs such student incurs as a result of such
      student's disability.
    (c) Refusal or adjustment of loan certifications
      On a case-by-case basis, an eligible institution may refuse to
    certify a statement that permits a student to receive a loan under
    part B or C of this subchapter, or may certify a loan amount or
    make a loan that is less than the student's determination of need
    (as determined under this part), if the reason for the action is
    documented and provided in written form to the student. No eligible
    institution shall discriminate against any borrower or applicant in
    obtaining a loan on the basis of race, national origin, religion,
    sex, marital status, age, or disability status.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 479A, as added Pub. L. 100-50, Sec.
    14(26), June 3, 1987, 101 Stat. 352; amended Pub. L. 101-239, title
    II, Sec. 2009, Dec. 19, 1989, 103 Stat. 2122; Pub. L. 102-325,
    title IV, Sec. 471(a), July 23, 1992, 106 Stat. 605; Pub. L. 103-
    208, Sec. 2(g)(16), Dec. 20, 1993, 107 Stat. 2473; Pub. L. 105-
    244, title IV, Sec. 478, Oct. 7, 1998, 112 Stat. 1731.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087tt, Pub. L. 89-329, title IV, Sec. 479A, as
    added Pub. L. 99-498, title IV, Sec. 406(a), Oct. 17, 1986, 100
    Stat. 1472, related to discretion of student financial aid
    administrators under this part, prior to repeal by section 14(26)
    of Pub. L. 100-50.

                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-244, Sec. 478(1), inserted after
    second sentence "Special circumstances may include tuition expenses
    at an elementary or secondary school, medical or dental expenses
    not covered by insurance, unusually high child care costs, recent
    unemployment of a family member, the number of parents enrolled at
    least half-time in a degree, certificate, or other program leading
    to a recognized educational credential at an institution with a
    program participation agreement under section 1094 of this title,
    or other changes in a family's income, a family's assets, or a
    student's status."
      Subsec. (c). Pub. L. 105-244, Sec. 478(2), amended heading and
    text of subsec. (c) generally. Prior to amendment, subsec. (c)
    related to student financial aid administrators making adjustments
    for special circumstances.
      1993 - Subsec. (c). Pub. L. 103-208 added subsec. (c).
      1992 - Pub. L. 102-325 amended section generally, revising and
    restating provisions of subsecs. (a) and (b) and striking out
    former subsec. (c) which related to asset adjustment as example.
      1989 - Subsec. (a). Pub. L. 101-239 amended subsec. (a)
    generally. Prior to amendment, subsec. (a) read as follows:
    "Nothing in this subchapter and part C of subchapter I of chapter
    34 of title 42 shall be interpreted as limiting the authority of
    the student financial aid administrator, on the basis of adequate
    documentation, to make necessary adjustments to the cost of
    attendance and expected student or parent contribution (or both) to
    allow for treatment of individual students with special
    circumstances. In addition, nothing in this subchapter and part C
    of subchapter I of chapter 34 of title 42 shall be interpreted as
    limiting the authority of the student financial aid administrator
    to use supplementary information about the financial status or
    personal circumstance of eligible applicants in selecting
    recipients and determining the amount of awards under subparts 1
    and 2 of part A and parts B and D of this subchapter and part C of
    subchapter I of chapter 34 of title 42."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244 effective Oct. 7, 1998, see section
    480A of Pub. L. 105-244, set out as a note under section 1087kk of
    this title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(a) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

                              EFFECTIVE DATE                          
      Section effective as if enacted as part of the Higher Education
    Amendments of 1986, Pub. L. 99-498, see section 27 of Pub. L. 100-
    50, set out as an Effective Date of 1987 Amendment note under
    section 1001 of this title.

-End-



-CITE-
    20 USC Sec. 1087uu                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

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

-STATUTE-
      Notwithstanding any other provision of law, student financial
    assistance received under this subchapter and part C of subchapter
    I of chapter 34 of title 42, or under Bureau of Indian Affairs
    student assistance programs, shall not be taken into account in
    determining the need or eligibility of any person for benefits or
    assistance, or the amount of such benefits or assistance, under any
    Federal, State, or local program financed in whole or in part with
    Federal funds.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 479B, as added Pub. L. 100-50, Sec.
    14(27), June 3, 1987, 101 Stat. 353; amended Pub. L. 102-325, title
    IV, Sec. 471(a), July 23, 1992, 106 Stat. 606.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1087uu, Pub. L. 89-329, title IV, Sec. 479B, as
    added Pub. L. 99-498, title IV, Sec. 406(a), Oct. 17, 1986, 100
    Stat. 1472, related to exclusion of student financial assistance
    for attendance costs in determining student eligibility for
    assistance under any other program funded in whole or part with
    Federal funds, prior to repeal by section 14(27) of Pub. L. 100-50.

                                AMENDMENTS                            
      1992 - Pub. L. 102-325 amended section generally, revising and
    restating as a single paragraph provisions formerly contained in
    subsec. (a) which proscribed consideration of aid for attendance
    costs as income or resources, and in subsec. (b) which delineated
    elements of attendance costs.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

                              EFFECTIVE DATE                          
      Section effective as if enacted as part of the Higher Education
    Amendments of 1986, Pub. L. 99-498, see section 27 of Pub. L. 100-
    50, set out as an Effective Date of 1987 Amendment note under
    section 1001 of this title.
      Section applicable with respect to financial assistance provided
    for any academic year beginning after Oct. 17, 1986, see section
    406(b)(4) of Pub. L. 99-498, as amended, set out as a note under
    section 1087kk of this title.

-End-



-CITE-
    20 USC Sec. 1087uu-1                                        01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087uu-1. Native American students

-STATUTE-
      In determining family contributions for Native American students,
    computations performed pursuant to this part shall exclude - 
        (1) any income and assets of $2,000 or less per individual
      payment received by the student (and spouse) and student's
      parents under the Per Capita Act or the Distribution of Judgment
      Funds Act [25 U.S.C. 1401 et seq.]; and
        (2) any income received by the student (and spouse) and
      student's parents under the Alaskan Native Claims Settlement Act
      [43 U.S.C. 1601 et seq.] or the Maine Indian Claims Settlement
      Act [25 U.S.C. 1721 et seq.].

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 479C, as added Pub. L. 100-50, Sec.
    14(27), June 3, 1987, 101 Stat. 353; amended Pub. L. 102-325, title
    IV, Sec. 471(a), July 23, 1992, 106 Stat. 606.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Per Capita Act, referred to in par. (1), probably means Pub.
    L. 98-64, Aug. 2, 1983, 97 Stat. 365, which enacted sections 117a
    to 117c of Title 25, Indians, and repealed section 117 of Title 25.
    For complete classification of this Act to the Code, see Tables.
      The Distribution of Judgment Funds Act, referred to in par. (1),
    is Pub. L. 93-134, Oct. 19, 1973, 87 Stat. 466, as amended, also
    known as the Indian Tribal Judgment Funds Use or Distribution Act,
    which is classified generally to chapter 16 (Sec. 1401 et seq.) of
    Title 25. For complete classification of this Act to the Code, see
    Tables.
      The Alaskan Native Claims Settlement Act, referred to in par.
    (2), probably means the Alaska Native Claims Settlement Act, Pub.
    L. 92-203, Dec. 18, 1971, 85 Stat. 688, as amended, which is
    classified generally to chapter 33 (Sec. 1601 et seq.) of Title 43,
    Public Lands. For complete classification of this Act to the Code,
    see Short Title note set out under section 1601 of Title 43 and
    Tables.
      The Maine Indian Claims Settlement Act, referred to in par. (2),
    probably means the Maine Indian Claims Settlement Act of 1980, Pub.
    L. 96-420, Oct. 10, 1980, 94 Stat. 1785, which is classified
    generally to subchapter II (Sec. 1721 et seq.) of chapter 19 of
    Title 25, Indians. For complete classification of this Act to the
    Code, see Short Title note set out under section 1721 of Title 25
    and Tables.


-MISC1-
                                AMENDMENTS                            
      1992 - Pub. L. 102-325 amended section generally, reenacting
    provisions without change.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

                              EFFECTIVE DATE                          
      Section effective as if enacted as part of the Higher Education
    Amendments of 1986, Pub. L. 99-498, see section 27 of Pub. L. 100-
    50, set out as an Effective Date of 1987 Amendment note under
    section 1001 of this title.

-End-



-CITE-
    20 USC Sec. 1087vv                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part E - Need Analysis

-HEAD-
    Sec. 1087vv. Definitions

-STATUTE-
      As used in this part:
    (a) Total income
      (1) Except as provided in paragraph (2), the term "total income"
    is equal to adjusted gross income plus untaxed income and benefits
    for the preceding tax year minus excludable income (as defined in
    subsection (e) of this section).
      (2) No portion of any student financial assistance received from
    any program by an individual, no portion of a national service
    educational award or post-service benefit received by an individual
    under title I of the National and Community Service Act of 1990 [42
    U.S.C. 12511 et seq.], and no portion of any tax credit taken under
    section 25A of title 26, shall be included as income or assets in
    the computation of expected family contribution for any program
    funded in whole or in part under this chapter.
    (b) Untaxed income and benefits
      The term "untaxed income and benefits" means - 
        (1) child support received;
        (2) welfare benefits, including assistance under a State
      program funded under part A of title IV of the Social Security
      Act [42 U.S.C. 601 et seq.] and aid to dependent children;
        (3) workman's compensation;
        (4) veterans' benefits such as death pension, dependency, and
      indemnity compensation, but excluding veterans' education
      benefits as defined in subsection (c) of this section;
        (5) interest on tax-free bonds;
        (6) housing, food, and other allowances (excluding rent
      subsidies for low-income housing) for military, clergy, and
      others (including cash payments and cash value of benefits);
        (7) cash support or any money paid on the student's behalf,
      except, for dependent students, funds provided by the student's
      parents;
        (8) the amount of earned income credit claimed for Federal
      income tax purposes;
        (9) untaxed portion of pensions;
        (10) credit for Federal tax on special fuels;
        (11) the amount of foreign income excluded for purposes of
      Federal income taxes;
        (12) untaxed social security benefits;
        (13) payments to individual retirement accounts and Keogh
      accounts excluded from income for Federal income tax purposes;
      and
        (14) any other untaxed income and benefits, such as Black Lung
      Benefits, Refugee Assistance, railroad retirement benefits, or
      benefits received through participation in employment and
      training activities under title I of the Workforce Investment Act
      of 1998 [29 U.S.C. 2801 et seq.].
    (c) Veteran and veterans' education benefits
      (1) The term "veteran" means any individual who - 
        (A) has engaged in the active duty in the United States Army,
      Navy, Air Force, Marines, or Coast Guard; and
        (B) was released under a condition other than dishonorable.

      (2) The term "veterans' education benefits" means veterans'
    benefits the student will receive during the award year, including
    but not limited to the following:
        (A) Title 10, chapter 2: Reserve Officer Training Corps
      scholarship.
        (B) Title 10, chapter 106: Selective Reserve.
        (C) Title 10, chapter 107: Selective Reserve Educational
      Assistance Program.
        (D) Title 37, chapter 2: Reserve Officer Training Corps
      Program.
        (E) Title 38, chapter 30: Montgomery GI Bill - active duty.
        (F) Title 38, chapter 31: vocational rehabilitation.
        (G) Title 38, chapter 32: Post-Vietnam Era Veterans'
      Educational Assistance Program.
        (H) Title 38, chapter 35: Dependents Educational Assistance
      Program.
        (I) Public Law 97-376, section 156: Restored Entitlement
      Program for Survivors (or Quayle benefits).
        (J) Public Law 96-342, section 903: Educational Assistance
      Pilot Program.
    (d) Independent student
      The term "independent", when used with respect to a student,
    means any individual who - 
        (1) is 24 years of age or older by December 31 of the award
      year;
        (2) is an orphan or ward of the court or was a ward of the
      court until the individual reached the age of 18;
        (3) is a veteran of the Armed Forces of the United States (as
      defined in subsection (c)(1) of this section) or is currently
      serving on active duty in the Armed Forces for other than
      training purposes;
        (4) is a graduate or professional student;
        (5) is a married individual;
        (6) has legal dependents other than a spouse; or
        (7) is a student for whom a financial aid administrator makes a
      documented determination of independence by reason of other
      unusual circumstances.
    (e) Excludable income
      The term "excludable income" means - 
        (1) any student financial assistance awarded based on need as
      determined in accordance with the provisions of this part,
      including any income earned from work under part C of subchapter
      I of chapter 34 of title 42;
        (2) any living allowance received by a participant in a program
      established under the National and Community Service Act of 1990
      [42 U.S.C. 12501 et seq.];
        (3) child support payments made by the student or parent; and
        (4) payments made and services provided under part E of title
      IV of the Social Security Act [42 U.S.C. 670 et seq.].
    (f) Assets
      (1) The term "assets" means cash on hand, including the amount in
    checking and savings accounts, time deposits, money market funds,
    trusts, stocks, bonds, other securities, mutual funds, tax
    shelters, qualified education benefits (except as provided in
    paragraph (3)), and the net value of real estate, income producing
    property, and business and farm assets.
      (2) With respect to determinations of need under this subchapter
    and part C of subchapter I of chapter 34 of title 42, other than
    for subpart 4 of part A of this subchapter, the term "assets" shall
    not include the net value of - 
        (A) the family's principal place of residence;
        (B) a family farm on which the family resides; or
        (C) a small business with not more than 100 full-time or full-
      time equivalent employees (or any part of such a small business)
      that is owned and controlled by the family.

      (3) A qualified education benefit shall not be considered an
    asset of a student for purposes of section 1087oo of this title.
      (4) In determining the value of assets in a determination of need
    under this subchapter and part C of subchapter I of chapter 34 of
    title 42 (other than for subpart 4 of part A of this subchapter),
    the value of a qualified education benefit shall be - 
        (A) the refund value of any tuition credits or certificates
      purchased under a qualified education benefit; and
        (B) in the case of a program in which contributions are made to
      an account that is established for the purpose of meeting the
      qualified higher education expenses of the designated beneficiary
      of the account, the current balance of such account.

      (5) In this subsection:
        (A) The term "qualified education benefit" means - 
          (i) a qualified tuition program (as defined in section
        529(b)(1)(A) of title 26) or other prepaid tuition plan offered
        by a State; and
          (ii) a Coverdell education savings account (as defined in
        section 530(b)(1) of title 26).

        (B) The term "qualified higher education expenses" has the
      meaning given the term in section 529(e) of title 26.
    (g) Net assets
      The term "net assets" means the current market value at the time
    of application of the assets (as defined in subsection (f) of this
    section), minus the outstanding liabilities or indebtedness against
    the assets.
    (h) Treatment of income taxes paid to other jurisdictions
      (1) The tax on income paid to the Governments of the Commonwealth
    of Puerto Rico, Guam, American Samoa, the Virgin Islands, or the
    Commonwealth of the Northern Mariana Islands, the Republic of the
    Marshall Islands, the Federated States of Micronesia, or Palau
    under the laws applicable to those jurisdictions, or the comparable
    tax paid to the central government of a foreign country, shall be
    treated as Federal income taxes.
      (2) References in this part to title 26, Federal income tax
    forms, and the Internal Revenue Service shall, for purposes of the
    tax described in paragraph (1), be treated as references to the
    corresponding laws, tax forms, and tax collection agencies of those
    jurisdictions, respectively, subject to such adjustments as the
    Secretary may provide by regulation.
    (i) Current balance
      The term "current balance of checking and savings accounts" does
    not include any funds over which an individual is barred from
    exercising discretion and control because of the actions of any
    State in declaring a bank emergency due to the insolvency of a
    private deposit insurance fund.
    (j) Other financial assistance
      (1) For purposes of determining a student's eligibility for funds
    under this subchapter and part C of subchapter I of chapter 34 of
    title 42, estimated financial assistance not received under this
    subchapter and part C of subchapter I of chapter 34 of title 42
    shall include all scholarships, grants, loans, or other assistance
    known to the institution at the time the determination of the
    student's need is made, including veterans' education benefits as
    defined in subsection (c) of this section, and national service
    educational awards or post-service benefits under title I of the
    National and Community Service Act of 1990 [42 U.S.C. 12511 et
    seq.].
      (2) Notwithstanding paragraph (1), a tax credit taken under
    section 25A of title 26 shall not be treated as estimated financial
    assistance for purposes of section 1087kk(3) of this title.
      (3) Notwithstanding paragraph (1) and section 1087ll of this
    title, assistance not received under this subchapter and part C of
    subchapter I of chapter 34 of title 42 may be excluded from both
    estimated financial assistance and cost of attendance, if that
    assistance is provided by a State and is designated by such State
    to offset a specific component of the cost of attendance. If that
    assistance is excluded from either estimated financial assistance
    or cost of attendance, it shall be excluded from both.
    (k) Dependents
      (1) Except as otherwise provided, the term "dependent of the
    parent" means the student, dependent children of the student's
    parents, including those children who are deemed to be dependent
    students when applying for aid under this subchapter and part C of
    subchapter I of chapter 34 of title 42, and other persons who live
    with and receive more than one-half of their support from the
    parent and will continue to receive more than half of their support
    from the parent during the award year.
      (2) Except as otherwise provided, the term "dependent of the
    student" means the student's dependent children and other persons
    (except the student's spouse) who live with and receive more than
    one-half of their support from the student and will continue to
    receive more than half of their support from the student during the
    award year.
    (l) Family size
      (1) In determining family size in the case of a dependent student
    - 
        (A) if the parents are not divorced or separated, family
      members include the student's parents, and the dependents of the
      student's parents including the student;
        (B) if the parents are divorced or separated, family members
      include the parent whose income is included in computing
      available income and that parent's dependents, including the
      student; and
        (C) if the parents are divorced and the parent whose income is
      so included is remarried, or if the parent was a widow or widower
      who has remarried, family members also include, in addition to
      those individuals referred to in subparagraph (B), the new spouse
      and any dependents of the new spouse if that spouse's income is
      included in determining the parents' adjusted available income.

      (2) In determining family size in the case of an independent
    student - 
        (A) family members include the student, the student's spouse,
      and the dependents of the student; and
        (B) if the student is divorced or separated, family members do
      not include the spouse (or ex-spouse), but do include the student
      and the student's dependents.
    (m) Business assets
      The term "business assets" means property that is used in the
    operation of a trade or business, including real estate,
    inventories, buildings, machinery, and other equipment, patents,
    franchise rights, and copyrights.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 480, as added Pub. L. 99-498, title
    IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 1472; amended Pub. L. 100-
    50, Sec. 14(28), June 3, 1987, 101 Stat. 353; Pub. L. 100-369,
    Sec. 7(b), July 18, 1988, 102 Stat. 837; Pub. L. 101-610, title I,
    Sec. 185(3), (4), Nov. 16, 1990, 104 Stat. 3168; Pub. L. 102-325,
    title IV, Sec. 471(a), July 23, 1992, 106 Stat. 606; Pub. L. 103-
    82, title I, Sec. 102(c)(4), (5), Sept. 21, 1993, 107 Stat. 824;
    Pub. L. 103-208, Sec. 2(g)(17)-(20), Dec. 20, 1993, 107 Stat. 2474;
    Pub. L. 104-193, title I, Sec. 110(h)(2), Aug. 22, 1996, 110 Stat.
    2172; Pub. L. 105-78, title VI, Sec. 609(j), (k), Nov. 13, 1997,
    111 Stat. 1524; Pub. L. 105-244, title IV, Sec. 479, Oct. 7, 1998,
    112 Stat. 1732; Pub. L. 105-277, div. A, Sec. 101(f) [title VIII,
    Sec. 405(d)(15)(B), (f)(12)(B)], Oct. 21, 1998, 112 Stat. 2681-337,
    2681-421, 2681-431; Pub. L. 109-171, title VIII, Sec. 8019, Feb. 8,
    2006, 120 Stat. 176.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National and Community Service Act of 1990, referred to in
    subsecs. (a)(2), (e)(2), and (j)(1), is Pub. L. 101-610, Nov. 16,
    1990, 104 Stat. 3127, as amended, which is classified principally
    to chapter 129 (Sec. 12501 et seq.) of Title 42, The Public Health
    and Welfare. Title I of the Act enacted subchapter I (Sec. 12511 et
    seq.) of chapter 129 of Title 42 and amended sections 1070a-6 and
    1087vv of this title. For complete classification of this Act to
    the Code, see Short Title note set out under section 12501 of Title
    42 and Tables.
      This chapter, referred to in subsec. (a)(2), was in the original
    "this Act", meaning Pub. L. 89-329, as amended, known as the Higher
    Education Act of 1965. For complete classification of this Act to
    the Code, see Short Title note set out under section 1001 of this
    title and Tables.
      The Social Security Act, referred to in subsecs. (b)(2) and
    (e)(4), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended.
    Parts A and E of title IV of the Act are classified generally to
    parts A (Sec. 601 et seq.) and E (Sec. 670 et seq.) of subchapter
    IV of chapter 7 of Title 42, The Public Health and Welfare. For
    complete classification of this Act to the Code, see section 1305
    of Title 42 and Tables.
      The Workforce Investment Act of 1998, referred to in subsec.
    (b)(14), is Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, as
    amended. Title I of the Act is classified principally to chapter 30
    (Sec. 2801 et seq.) of Title 29, Labor. For complete classification
    of this Act to the Code, see Short Title note set out under section
    9201 of this title and Tables.
      Title 10, chapter 2, referred to in subsec. (c)(2)(A), relates to
    the organization of the Department of Defense. For provisions
    relating to the Reserve Officer Training Corps, see chapters 102
    and 103 of Title 10, Armed Forces.
      Title 10, chapter 107, referred to in subsec. (c)(2)(C), relates
    to educational assistance for active duty enlistees. For provisions
    relating to the Selective Reserve educational assistance program,
    see chapter 106 of Title 10.
      Title 37, chapter 2, referred to in subsec. (c)(2)(D), has never
    been enacted. For provisions relating to the Reserve Officer
    Training Corps, see chapters 102 and 103 of Title 10.
      Public Law 97-376, section 156, referred to in subsec. (c)(2)(I),
    probably means Pub. L. 97-377, title I, Sec. 156, Dec. 21, 1982, 96
    Stat. 1920, as amended, which is set out as a note under section
    402 of Title 42, The Public Health and Welfare. Pub. L. 97-376 does
    not contain a section 156.
      Public Law 96-342, section 903, referred to in subsec. (c)(2)(J),
    is set out as a note under section 2141 of Title 10, Armed Forces.

-COD-
                               CODIFICATION                           
      Amendment by section 2(g)(19) of Pub. L. 103-208 (which was
    effective as if included in Pub. L. 102-325) was executed to this
    section as amended by Pub. L. 102-325 and Pub. L. 103-82, to
    reflect the probable intent of Congress.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (d)(3). Pub. L. 109-171, Sec. 8019(a), inserted
    "or is currently serving on active duty in the Armed Forces for
    other than training purposes" before semicolon at end.
      Subsec. (f)(1). Pub. L. 109-171, Sec. 8019(b), inserted
    "qualified education benefits (except as provided in paragraph
    (3))," after "tax shelters,".
      Subsec. (f)(2)(C). Pub. L. 109-171, Sec. 8019(c), added subpar.
    (C).
      Subsec. (f)(3) to (5). Pub. L. 109-171, Sec. 8019(d), added pars.
    (3) to (5).
      Subsec. (j). Pub. L. 109-171, Sec. 8019(e)(1), struck out ";
    tuition prepayment plans" at end of heading.
      Subsec. (j)(2), (3). Pub. L. 109-171, Sec. 8019(e)(2)-(4), struck
    out par. (2), redesignated par. (3) as (2), and added par. (3).
    Prior to amendment, par. (2) read as follows:
      "(2)(A) Except as provided in subparagraph (B), for purposes of
    determining a student's eligibility for funds under this subchapter
    and part C of subchapter I of chapter 34 of title 42, tuition
    prepayment plans shall reduce the cost of attendance (as determined
    under section 1087ll of this title) by the amount of the
    prepayment, and shall not be considered estimated financial
    assistance.
      "(B) If the institutional expense covered by the prepayment must
    be part of the student's cost of attendance for accounting
    purposes, the prepayment shall be considered estimated financial
    assistance."
      1998 - Subsec. (b)(14). Pub. L. 105-277, Sec. 101(f) [title VIII,
    Sec. 405(f)(12)(B)], struck out "Job Training Partnership Act
    noneducational benefits or" after "railroad retirement benefits,
    or".
      Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(15)(B)],
    substituted "Job Training Partnership Act noneducational benefits
    or benefits received through participation in employment and
    training activities under title I of the Workforce Investment Act
    of 1998" for "Job Training Partnership Act noneducational
    benefits".
      Subsec. (j)(1). Pub. L. 105-244, Sec. 479(1), inserted before
    period at end ", and national service educational awards or post-
    service benefits under title I of the National and Community
    Service Act of 1990".
      Subsec. (j)(3), (4). Pub. L. 105-244, Sec. 479(2), (3),
    redesignated par. (4) as (3) and struck out former par. (3) which
    read as follows: "Notwithstanding paragraph (1), a national service
    educational award or post-service benefit under title I of the
    National and Community Service Act of 1990 shall not be treated as
    financial assistance for purposes of section 1087kk(3) of this
    title."
      1997 - Subsec. (a)(2). Pub. L. 105-78, Sec. 609(j), substituted
    "program by an individual, no" for "program by an individual, and
    no" and inserted "and no portion of any tax credit taken under
    section 25A of title 26," before "shall be included".
      Subsec. (j)(4). Pub. L. 105-78, Sec. 609(k), added par. (4).
      1996 - Subsec. (b)(2). Pub. L. 104-193 substituted "assistance
    under a State program funded" for "aid to families with dependent
    children under a State plan approved".
      1993 - Subsec. (a)(2). Pub. L. 103-82, Sec. 102(c)(4), inserted
    ", and no portion of a national service educational award or post-
    service benefit received by an individual under title I of the
    National and Community Service Act of 1990," after "by an
    individual".
      Subsec. (c)(2). Pub. L. 103-208, Sec. 2(g)(17), made technical
    amendment to references to titles of the United States Code in
    subpars. (A) to (H).
      Subsec. (d)(2). Pub. L. 103-208, Sec. 2(g)(18), inserted before
    semicolon "or was a ward of the court until the individual reached
    the age of 18".
      Subsec. (j)(3). Pub. L. 103-208, Sec. 2(g)(19), realigned margin.
    See Codification note above.
      Pub. L. 103-82, Sec. 102(c)(5), added par. (3).
      Subsecs. (k) to (m). Pub. L. 103-208, Sec. 2(g)(20), added
    subsecs. (k) to (m).
      1992 - Pub. L. 102-325 amended section generally, substituting
    subsecs. (a) to (j) for former subsecs. (a) to (i).
      1990 - Subsec. (d)(2)(F). Pub. L. 101-610, Sec. 185(4), inserted
    "and living allowances as a result of participation in a program
    established under the National and Community Service Act of 1990)"
    after "other than parents".
      Subsec. (f)(3). Pub. L. 101-610, Sec. 185(3), added par. (3).
      1988 - Subsec. (i). Pub. L. 100-369 added subsec. (i).
      1987 - Subsec. (a)(1). Pub. L. 100-50, Sec. 14(28)(A), (B),
    substituted "paragraphs (2) through (4)" for "paragraphs (2) and
    (3)" and inserted "minus excludable income (as defined in
    subsection (f) of this section)" before period at end.
      Subsec. (a)(2). Pub. L. 100-50, Sec. 14(28)(C), added par. (2)
    and struck out former par. (2) which read as follows: "The
    Secretary shall promulgate special regulations to permit, in the
    computation of family contributions for the programs under subpart
    2 of part A and parts B and D of this subchapter and part C of
    subchapter I of chapter 34 of title 42 for any academic year the
    exclusion from family income of any proceeds of a sale of farm or
    business assets of that family if such sale results from a
    voluntary or involuntary foreclosure, forfeiture, liquidation, or
    bankruptcy."
      Subsec. (a)(4). Pub. L. 100-50, Sec. 14(28)(D), added par. (4).
      Subsecs. (b), (c). Pub. L. 100-50, Sec. 14(28)(E), substituted
    subsec. (b) consisting of pars. (1) to (14) for former subsec. (b)
    consisting of pars. (1) to (19), and substituted subsec. (c)
    consisting of pars. (1) to (14) for former subsec. (c) consisting
    of pars. (1) to (16).
      Subsec. (d)(2)(F). Pub. L. 100-50, Sec. 14(28)(F), substituted
    "annual total resources (including all sources of resources other
    than parents)" for "an annual total income".
      Subsecs. (f) to (h). Pub. L. 100-50, Sec. 14(28)(G), added
    subsecs. (f) to (h).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 1998 AMENDMENTS                 
      Amendment by Pub. L. 105-244 effective Oct. 7, 1998, see section
    480A of Pub. L. 105-244, set out as a note under section 1087kk of
    this title.
      Amendment by section 101(f) [title VIII, Sec. 405(d)(15)(B)] of
    Pub. L. 105-277 effective Oct. 21, 1998, and amendment by section
    101(f) [title VIII, Sec. 405(f)(12)(B)] of Pub. L. 105-277
    effective July 1, 2000, see section 101(f) [title VIII, Sec.
    405(g)(1), (2)(B)] of Pub. L. 105-277, set out as a note under
    section 3502 of Title 5, Government Organization and Employees.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-193 effective July 1, 1997, with
    transition rules relating to State options to accelerate such date,
    rules relating to claims, actions, and proceedings commenced before
    such date, rules relating to closing out of accounts for terminated
    or substantially modified programs and continuance in office of
    Assistant Secretary for Family Support, and provisions relating to
    termination of entitlement under AFDC program, see section 116 of
    Pub. L. 104-193, as amended, set out as an Effective Date note
    under section 601 of Title 42, The Public Health and Welfare.

                     EFFECTIVE DATE OF 1993 AMENDMENTS                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.
      Amendment by Pub. L. 103-82 effective Oct. 1, 1993, see section
    123 of Pub. L. 103-82, set out as a note under section 1701 of
    Title 16, Conservation.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 applicable with respect to
    determinations of need under this part for award years beginning on
    or after July 1, 1993, see section 471(b) of Pub. L. 102-325, set
    out as a note under section 1087kk of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

-CROSS-
       DEFINITION OF "INDEPENDENT STUDENT"; APPLICATION TO SPECIFIED
                           PERIODS OF ENROLLMENT
      Section 406(b)(5), formerly section 406(b)(4), of Pub. L. 99-498,
    renumbered Pub. L. 100-50, Sec. 22(e)(2), June 3, 1987, 101 Stat.
    361, provided that: "The definition of independent student
    contained in section 480(d) of the Act [20 U.S.C. 1087vv(d)] as
    amended by subsection (a) of this section shall apply with respect
    to the determination of such need for periods of enrollment
    beginning on or after January 1, 1987, in the case of programs
    operated under part B of title IV of the Act [part B of this
    subchapter], or for periods of enrollment beginning on or after
    July 1, 1987, in the case of programs operated under subpart 2 of
    part A and parts C and E of such title [subpart 2 of part A of this
    subchapter and part C of subchapter I of chapter 34 of Title 42,
    The Public Health and Welfare, and part D of this subchapter]."
      [References to subpart 2 of part A of title IV of Pub. L. 89-329
    deemed, after July 23, 1992, to refer to subpart 3 of such part,
    see section 402(b) of Pub. L. 102-325, set out as a note under
    section 1070a-11 of this title.]

-End-


-CITE-
    20 USC Part F - General Provisions Relating to Student
                     Assistance Programs                   01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    PART F - GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE PROGRAMS

-COD-
                               CODIFICATION                           
      This part was originally added as part E of title IV of Pub. L.
    89-329 by Pub. L. 90-575, title I, Sec. 151, Oct. 16, 1968, 82
    Stat. 1032, and subsequently redesignated part F of said title IV
    by Pub. L. 92-318, title I, Sec. 137(b), June 23, 1972, 86 Stat.
    273, and then part G of said title IV by Pub. L. 99-498, title IV,
    Sec. 406(a), Oct. 17, 1986, 100 Stat. 1454. For codification
    purposes, the letter designation of this part was originally
    changed from "E" to "D." It was subsequently rechanged to "E" when
    this part was redesignated "F", and then to "F" when this part was
    redesignated "G". See Codification notes preceding sections 1087a
    and 1087aa of this title.
      Part G of title IV of the Higher Education Act of 1965,
    comprising this part which was editorially designated as part F of
    this subchapter, see Codification note above, was originally
    enacted by Pub. L. 89-329, title IV, Secs. 461 to 464 and 469, as
    added by Pub. L. 90-575, title I, Secs. 151, 152, Oct. 16, 1968, 82
    Stat. 1032, 1033; amended Pub. L. 91-230, Apr. 13, 1970, 84 Stat.
    121; Pub. L. 92-318, June 23, 1972, 86 Stat. 235; Pub. L. 94-482,
    Oct. 12, 1976, 90 Stat. 2081; Pub. L. 95-43, June 15, 1977, 91
    Stat. 213; Pub. L. 95-180, Nov. 15, 1977, 91 Stat. 1372; Pub. L. 95-
    566, Nov. 1, 1978, 92 Stat. 2402; S. Res. 30, Mar. 7, 1979; Pub.
    L. 96-49, Aug. 13, 1979, 93 Stat. 351; Pub. L. 96-374, Oct. 3,
    1980, 94 Stat. 1367; Pub. L. 97-35, Aug. 13, 1981, 95 Stat. 357;
    Pub. L. 98-79, Aug. 15, 1983, 97 Stat. 476; Pub. L. 99-272, Apr. 7,
    1986, 100 Stat. 82. Such part is shown herein, however, as having
    been added by Pub. L. 99-498, title IV, Sec. 407(a), Oct. 17, 1986,
    100 Stat. 1475, without reference to such intervening amendments
    because of the extensive revision of the part's provisions by Pub.
    L. 99-498.

-End-



-CITE-
    20 USC Sec. 1088                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1088. Definitions

-STATUTE-
    (a) Academic and award year
      (1) For the purpose of any program under this subchapter and part
    C of subchapter I of chapter 34 of title 42, the term "award year"
    shall be defined as the period beginning July 1 and ending June 30
    of the following year.
      (2)(A) For the purpose of any program under this subchapter and
    part C of subchapter I of chapter 34 of title 42, the term
    "academic year" shall - 
        (i) require a minimum of 30 weeks of instructional time for a
      course of study that measures its program length in credit hours;
      or
        (ii) require a minimum of 26 weeks of instructional time for a
      course of study that measures its program length in clock hours;
      and
        (iii) require an undergraduate course of study to contain an
      amount of instructional time whereby a full-time student is
      expected to complete at least - 
          (I) 24 semester or trimester hours or 36 quarter credit hours
        in a course of study that measures its program length in credit
        hours; or
          (II) 900 clock hours in a course of study that measures its
        program length in clock hours.

      (B) The Secretary may reduce such minimum of 30 weeks to not less
    than 26 weeks for good cause, as determined by the Secretary on a
    case-by-case basis, in the case of an institution of higher
    education that provides a 2-year or 4-year program of instruction
    for which the institution awards an associate or baccalaureate
    degree.
    (b) Eligible program
      (1) For purposes of this subchapter and part C of subchapter I of
    chapter 34 of title 42, the term "eligible program" means a program
    of at least - 
        (A) 600 clock hours of instruction, 16 semester hours, or 24
      quarter hours, offered during a minimum of 15 weeks, in the case
      of a program that - 
          (i) provides a program of training to prepare students for
        gainful employment in a recognized profession; and
          (ii) admits students who have not completed the equivalent of
        an associate degree; or

        (B) 300 clock hours of instruction, 8 semester hours, or 12
      hours, offered during a minimum of 10 weeks, in the case of - 
          (i) an undergraduate program that requires the equivalent of
        an associate degree for admissions; or
          (ii) a graduate or professional program.

      (2)(A) A program is an eligible program for purposes of part B of
    this subchapter if it is a program of at least 300 clock hours of
    instruction, but less than 600 clock hours of instruction, offered
    during a minimum of 10 weeks, that - 
        (i) has a verified completion rate of at least 70 percent, as
      determined in accordance with the regulations of the Secretary;
        (ii) has a verified placement rate of at least 70 percent, as
      determined in accordance with the regulations of the Secretary;
      and
        (iii) satisfies such further criteria as the Secretary may
      prescribe by regulation.

      (B) In the case of a program being determined eligible for the
    first time under this paragraph, such determination shall be made
    by the Secretary before such program is considered to have
    satisfied the requirements of this paragraph.
      (3) An otherwise eligible program that is offered in whole or in
    part through telecommunications is eligible for the purposes of
    this subchapter and part C of subchapter I of chapter 34 of title
    42 if the program is offered by an institution, other than a
    foreign institution, that has been evaluated and determined (before
    or after February 8, 2006) to have the capability to effectively
    deliver distance education programs by an accrediting agency or
    association that - 
        (A) is recognized by the Secretary under subpart 2 of part G of
      this subchapter; and
        (B) has evaluation of distance education programs within the
      scope of its recognition, as described in section 1099b(n)(3) of
      this title.

      (4) For purposes of this subchapter and part C of subchapter I of
    chapter 34 of title 42, the term "eligible program" includes an
    instructional program that, in lieu of credit hours or clock hours
    as the measure of student learning, utilizes direct assessment of
    student learning, or recognizes the direct assessment of student
    learning by others, if such assessment is consistent with the
    accreditation of the institution or program utilizing the results
    of the assessment. In the case of a program being determined
    eligible for the first time under this paragraph, such
    determination shall be made by the Secretary before such program is
    considered to be an eligible program.
    (c) Third party servicer
      For purposes of this subchapter and part C of subchapter I of
    chapter 34 of title 42, the term "third party servicer" means any
    individual, or any State, or private, profit or nonprofit
    organization which enters into a contract with - 
        (1) any eligible institution of higher education to administer,
      through either manual or automated processing, any aspect of such
      institution's student assistance programs under this subchapter
      and part C of subchapter I of chapter 34 of title 42; or
        (2) any guaranty agency, or any eligible lender, to administer,
      through either manual or automated processing, any aspect of such
      guaranty agency's or lender's student loan programs under part B
      of this subchapter, including originating, guaranteeing,
      monitoring, processing, servicing, or collecting loans.
    (d) Definitions for military deferments
      For purposes of parts B, C, and D of this subchapter:
      (1) Active duty
        The term "active duty" has the meaning given such term in
      section 101(d)(1) of title 10, except that such term does not
      include active duty for training or attendance at a service
      school.
      (2) Military operation
        The term "military operation" means a contingency operation as
      such term is defined in section 101(a)(13) of title 10.
      (3) 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.
      (4) Serving on active duty
        The term "serving on active duty during a war or other military
      operation or national emergency" means 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
        or any retired member of an Armed Force ordered to active duty
        under section 688 of such title, for service in connection with
        a war or other military operation or national emergency,
        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.
      (5) Qualifying National Guard duty
        The term "qualifying National Guard duty during a war or other
      military operation or national emergency" means service as a
      member of the National Guard on full-time National Guard duty (as
      defined in section 101(d)(5) of title 10) under a call to active
      service authorized by the President or the Secretary of Defense
      for a period of more than 30 consecutive days under section
      502(f) of title 32 in connection with a war, other military
      operation, or a national emergency declared by the President and
      supported by Federal funds.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 481, as added Pub. L. 99-498, title
    IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1476; amended Pub. L. 100-
    50, Sec. 15(1), June 3, 1987, 101 Stat. 355; Pub. L. 101-239,
    title II, Sec. 2007(b), (c), Dec. 19, 1989, 103 Stat. 2120, 2121;
    Pub. L. 101-508, title III, Sec. 3005(b), Nov. 5, 1990, 104 Stat.
    1388-28; Pub. L. 102-26, Sec. 2(a)(2), (3), (d)(2)(A), Apr. 9,
    1991, 105 Stat. 123, 124; Pub. L. 102-325, title IV, Sec. 481, July
    23, 1992, 106 Stat. 609; Pub. L. 103-208, Sec. 2(h)(1)-(6), Dec.
    20, 1993, 107 Stat. 2475, 2476; Pub. L. 105-216, Sec. 12, July 29,
    1998, 112 Stat. 908; Pub. L. 105-244, title I, Sec. 101(c), Oct. 7,
    1998, 112 Stat. 1617; Pub. L. 109-171, title VIII, Secs. 8007(d),
    8020(a), (b), Feb. 8, 2006, 120 Stat. 161, 177.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1088, Pub. L. 89-329, title IV, Sec. 481, as
    added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.
    1443, defined "institution of higher education" for this subchapter
    and part C of subchapter I of chapter 34 of Title 42, The Public
    Health and Welfare, prior to the general amendment of this part by
    Pub. L. 99-498.
      Another prior section 1088, Pub. L. 89-329, title IV, Sec. 491,
    formerly Sec. 461, as added Pub. L. 90-575, title I, Sec. 151, Oct.
    16, 1968, 82 Stat. 1032, renumbered Sec. 491 and amended Pub. L. 92-
    318, title I, Secs. 131(c), 137(b), title X, Sec. 1001(c)(3), June
    23, 1972, 86 Stat. 259, 272, 381; amended Pub. L. 95-180, Sec.
    1(b), Nov. 15, 1977, 91 Stat. 1372; Pub. L. 95-566, Sec. 6, Nov. 1,
    1978, 92 Stat. 2403; Pub. L. 96-49, Sec. 5(e), Aug. 13, 1979, 93
    Stat. 352, defined terms for this subchapter and part C of
    subchapter I of chapter 34 of title 42, prior to the general
    revision of this part by Pub. L. 96-374.

                                AMENDMENTS                            
      2006 - Subsec. (a)(2). Pub. L. 109-171, Sec. 8020(a), amended
    par. (2) generally. Prior to amendment, par. (2) read as follows:
    "For the purpose of any program under this subchapter and part C of
    subchapter I of chapter 34 of title 42, the term 'academic year'
    shall require a minimum of 30 weeks of instructional time, and,
    with respect to an undergraduate course of study, shall require
    that during such minimum period of instructional time a full-time
    student is expected to complete at least 24 semester or trimester
    hours or 36 quarter hours at an institution that measures program
    length in credit hours, or at least 900 clock hours at an
    institution that measures program length in clock hours. The
    Secretary may reduce such minimum of 30 weeks to not less than 26
    weeks for good cause, as determined by the Secretary on a case-by-
    case basis, in the case of an institution of higher education that
    provides a 2-year or 4-year program of instruction for which the
    institution awards an associate or baccalaureate degree."
      Subsec. (b)(3), (4). Pub. L. 109-171, Sec. 8020(b), added pars.
    (3) and (4).
      Subsec. (d). Pub. L. 109-171, Sec. 8007(d), added subsec. (d).
      1998 - Pub. L. 105-244 redesignated subsecs. (d) to (f) as (a) to
    (c), respectively, and struck out former subsecs. (a) to (c) which
    defined the terms "institution of higher education", "proprietary
    institution of higher education", and "postsecondary vocational
    institution". See section 1002 of this title.
      Subsec. (a)(4). Pub. L. 105-216, which directed the amendment of
    par. (4), effective 1 year after July 29, 1998, by designating
    existing provisions as subpar. (A), redesignating former subpars.
    (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A), and
    by adding subpar. (B) to read as follows: "Subparagraph (A)(i)
    shall not apply to a nonprofit institution whose primary function
    is to provide health care educational services (or an affiliate of
    such an institution that has the power, by contract or ownership
    interest, to direct or cause the direction of the institution's
    management or policies) that files for bankruptcy under chapter 11
    of title 11 between July 1, and December 31, 1998.", could not be
    executed because subsec. (a) did not contain a par. (4) subsequent
    to amendment by Pub. L. 105-244. See above.
      1993 - Subsec. (a)(3)(B). Pub. L. 103-208, Sec. 2(h)(1), inserted
    before semicolon at end ", except that the Secretary, at the
    request of such institution, may waive the applicability of this
    subparagraph to such institution for good cause, as determined by
    the Secretary in the case of an institution of higher education
    that provides a 2-year or 4-year program of instruction for which
    the institution awards an associate or baccalaureate degree".
      Subsec. (a)(3)(D). Pub. L. 103-208, Sec. 2(h)(2), substituted "do
    not have a high school diploma or its recognized equivalent" for
    "are admitted pursuant to section 1091(d) of this title" and
    inserted before period at end ", except that the Secretary may
    waive the limitation contained in this subparagraph if a nonprofit
    institution demonstrates to the satisfaction of the Secretary that
    it exceeds such limitation because it serves, through contracts
    with Federal, State, or local government agencies, significant
    numbers of students who do not have a high school diploma or its
    recognized equivalent".
      Subsec. (a)(4)(A). Pub. L. 103-208, Sec. 2(h)(3), amended subpar.
    (A) generally. Prior to amendment, subpar. (A) read as follows:
    "such institution has filed for bankruptcy; or".
      Subsec. (d)(2). Pub. L. 103-208, Sec. 2(h)(4), amended par. (2)
    generally. Prior to amendment, par. (2) read as follows: "For the
    purpose of any program under this subchapter and part C of
    subchapter I of chapter 34 of title 42, the term 'academic year'
    shall require a minimum of 30 weeks of instructional time in which
    a full-time student is expected to complete at least 24 semester or
    trimester hours or 36 quarter hours at an institution which
    measures program length in credit hours or at least 900 clock hours
    at an institution which measures program length in clock hours."
      Subsec. (e)(2). Pub. L. 103-208, Sec. 2(h)(5), amended par. (2)
    generally. Prior to amendment, par. (2) read as follows: "The
    Secretary shall develop regulations to determine the quality of
    programs of less than 600 clock hours in length. Such regulations
    shall require, at a minimum, that the programs have a verified rate
    of completion of at least 70 percent and a verified rate of
    placement of at least 70 percent. Pursuant to these regulations and
    notwithstanding paragraph (1), the Secretary shall allow programs
    of less than 600 clock hours, but greater than 300 clock hours, in
    length to be eligible to participate in the programs authorized
    under part B of this subchapter."
      Subsec. (f). Pub. L. 103-208, Sec. 2(h)(6), substituted
    "individual, or any State," for "State" in introductory provisions.
      1992 - Pub. L. 102-325, Sec. 481(a), amended section catchline.
      Subsec. (a). Pub. L. 102-325, Sec. 481(a), added subsec. (a) and
    struck out former subsec. (a) which contained pars. (1) and (2)
    defining "institution of higher education" and "accredited" and
    par. (3) which related to recognition of accreditation of eligible
    institutions of higher education.
      Subsec. (b). Pub. L. 102-325, Sec. 481(b)(4), struck out at end
    "For the purpose of this subsection, the Secretary shall publish a
    list of nationally recognized accrediting agencies or associations
    which he determines to be reliable authority as to the quality of
    training offered."
      Subsec. (b)(1). Pub. L. 102-325, Sec. 481(b)(1), substituted "an
    eligible program" for "not less than a 6-month program".
      Subsec. (b)(4). Pub. L. 102-325, Sec. 481(b)(2), substituted
    "pursuant to part G of this subchapter," for "for this purpose,
    and".
      Subsec. (b)(5), (6). Pub. L. 102-325, Sec. 481(b)(3), substituted
    "years, and" for "years." in cl. (5) and added cl. (6).
      Subsec. (c)(1). Pub. L. 102-325, Sec. 481(c), substituted "an
    eligible program" for "not less than a six-month program".
      Subsec. (d). Pub. L. 102-325, Sec. 481(d), inserted "and award"
    after "Academic" in heading and amended text generally. Prior to
    amendment, text read as follows: "For the purpose of any program
    under this subchapter and part C of subchapter I of chapter 34 of
    title 42, the term 'academic year' shall be defined by the
    Secretary by regulation."
      Subsec. (e). Pub. L. 102-325, Sec. 481(e), amended subsec. (e)
    generally, substituting provisions relating to eligible program for
    provisions relating to impact of loss of accreditation.
      Subsec. (f). Pub. L. 102-325, Sec. 481(f), added subsec. (f).
      1991 - Subsec. (b). Pub. L. 102-26, Sec. 2(d)(2)(A), repealed
    Pub. L. 101-508, Sec. 3005(b). See 1990 Amendment note below.
      Pub. L. 102-26, Sec. 2(a)(2), struck out "and who have the
    ability to benefit (as determined by the institution under section
    1091(d) of this title) from the training offered by the
    institution" before period at end of second sentence, and struck
    out at end "The Secretary shall not promulgate regulations defining
    the admissions procedures or remediation programs that must be used
    by an institution in admitting students on the basis of their
    ability to benefit from the training offered and shall not, as a
    condition of recognition under section 413(e) of this Act, impose
    upon any accrediting body or bodies standards which are different
    or more restrictive than the standards provided in this
    subsection."
      Subsec. (c). Pub. L. 102-26, Sec. 2(a)(3), struck out before
    period at end "and who have the ability to benefit (as determined
    by the institution under section 1091(d) of this title) from the
    training offered by the institution".
      1990 - Subsec. (b). Pub. L. 101-508, which inserted ", except in
    accordance with section 1091(d) of this title," after "shall not"
    in fourth sentence, was repealed by Pub. L. 102-26, Sec.
    2(d)(2)(A). See Construction of 1991 Amendment note below.
      1989 - Subsec. (a)(1). Pub. L. 101-239, Sec. 2007(b)(1),
    substituted "Subject to subsection (e) of this section, for the
    purpose" for "For the purpose".
      Subsec. (a)(3). Pub. L. 101-239, Sec. 2007(c), added par. (3).
      Subsec. (e). Pub. L. 101-239, Sec. 2007(b)(2), added subsec. (e).
      1987 - Subsec. (c). Pub. L. 100-50 substituted "section 1091(d)
    of this title" for "subsection (d) of this section".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.
      Amendment by section 8007(d) of Pub. L. 109-171 applicable with
    respect to loans for which the first disbursement is made on or
    after July 1, 2001, see section 8007(f) of Pub. L. 109-171, set out
    as a note under section 1078 of this title.

                     EFFECTIVE DATE OF 1998 AMENDMENTS                 
      Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as
    otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-
    244, set out as a note under section 1001 of this title.
      Amendment by Pub. L. 105-216 effective 1 year after July 29,
    1998, see section 13 of Pub. L. 105-216, set out as an Effective
    Date note under section 4901 of Title 12, Banks and Banking.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Section 498 of Pub. L. 102-325 provided that: "The changes made
    in part G of title IV of the Act [20 U.S.C. 1088 et seq.] by the
    amendments made by this part [part G (Secs. 481-498) of title IV of
    Pub. L. 102-325, enacting sections 1091b, 1092c, 1094a, 1094b,
    1098a, and 1098b of this title, amending sections 1088 to 1091,
    1092, 1092b, 1093, 1094, 1095, 1096, 1097, and 1098 of this title,
    and repealing section 1096a of this title] shall take effect on the
    date of enactment of this Act [July 23, 1992], except that - 
        "(1) as otherwise provided in such part G;
        "(2) the changes in section 481(a) [20 U.S.C. 1088(a)],
      relating to the definition of institution of higher education,
      other than paragraph (4) of such section, shall be effective on
      and after October 1, 1992;
        "(3) section 481(e) as added by such amendments, relating to
      the definition of eligible program, shall be effective on and
      after July 1, 1993;
        "(4) section 484(m)(1) [20 U.S.C. 1091(m)(1)], relating to
      proportion of courses permitted to be correspondence courses, as
      added by such amendments shall be effective on and after October
      1, 1992;
        "(5) the changes in section 485 [20 U.S.C. 1092], relating to
      disclosures, shall be effective with respect to periods of
      enrollment beginning on or after July 1, 1993;
        "(6) the changes in section 488 [20 U.S.C. 1095], relating to
      transfers of allotments, shall apply with respect to funds
      provided for award years beginning on or after July 1, 1993; and
        "(7) the changes in section 489 [20 U.S.C. 1096], relating to
      payments for administrative expenses, shall apply with respect to
      funds provided for award years beginning on or after July 1,
      1993."

                     EFFECTIVE DATE OF 1991 AMENDMENT                 
      Amendment by Pub. L. 102-26 applicable to any grant, loan, or
    work assistance to cover the cost of instruction for periods of
    enrollment beginning on or after July 1, 1991, see section 2(d)(1)
    of Pub. L. 102-26, set out as a note under section 1085 of this
    title.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 3005(c) of Pub. L. 101-508, which provided that the
    amendments made by section 3005 (amending this section and section
    1091 of this title) were to apply to any grant, loan, or work
    assistance to cover the cost of instruction for periods of
    enrollment beginning on or after Jan. 1, 1991, was repealed by
    section 2(d)(2)(A) of Pub. L. 102-26. See Construction of 1991
    Amendment note below.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

                      CONSTRUCTION OF 2006 AMENDMENT                  
      Nothing in amendment by section 8007(d) of Pub. L. 109-171 to be
    construed to authorize any refunding of any repayment of a loan,
    see section 8007(e) of Pub. L. 109-171, set out as a note under
    section 1078 of this title.

                      CONSTRUCTION OF 1991 AMENDMENT                  
      Section 2(d)(2)(A) of Pub. L. 102-26 provided that: "Section 3005
    of the Omnibus Reconciliation Act of 1990 [Pub. L. 101-508,
    amending this section and section 1091 of this title and enacting
    provisions set out as a note above] is repealed. Sections 484(d)
    and 481(b) of the Act [20 U.S.C. 1091(d), 1088(b)] shall be applied
    as if such section 3005 had not been enacted."

                              NEED-BASED AID                          
      Section 1544 of Pub. L. 102-325 authorized institutions of higher
    education to voluntarily agree with other such institutions to
    award financial aid not awarded under this chapter to students
    attending such institutions only on basis of demonstrated financial
    need for such aid, and to discuss and adopt principles of
    professional judgment for determining student financial need for
    such aid, with exceptions for cases pending on July 23, 1992, and
    for discussions or agreements on prospective financial aid awards
    to specific common applicants, and provided that such authorization
    was to expire on Sept. 30, 1994, prior to repeal by Pub. L. 103-
    382, title V, Sec. 568(e)(2), Oct. 20, 1994, 108 Stat. 4061. See
    section 568(a)-(d) of Pub. L. 103-382, set out as a note under
    section 1 of Title 15, Commerce and Trade.

-End-



-CITE-
    20 USC Sec. 1088a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

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

-STATUTE-
      Notwithstanding any other provision of this chapter, any
    regulations promulgated by the Secretary concerning the
    relationship between clock hours and semester, trimester, or
    quarter hours in calculating student grant, loan, or work
    assistance under this subchapter and part C of subchapter I of
    chapter 34 of title 42, shall not apply to a public or private
    nonprofit hospital-based school of nursing that awards a diploma at
    the completion of the school's program of education.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 481A, as added Pub. L. 103-382,
    title III, Sec. 360(a), Oct. 20, 1994, 108 Stat. 3969.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this
    Act", meaning Pub. L. 89-329, as amended, known as the Higher
    Education Act of 1965. For complete classification of this Act to
    the Code, see Short Title note set out under section 1001 of this
    title and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      Prior sections 1088a to 1088g were omitted in the general
    amendment of this part by Pub. L. 96-374.
      Section 1088a, Pub. L. 89-329, title IV, Sec. 492, formerly Sec.
    462, as added Pub. L. 90-575, title I, Sec. 151, Oct. 16, 1968, 82
    Stat. 1032; renumbered Sec. 492, Pub. L. 92-318, title I, Sec.
    137(b), June 23, 1972, 86 Stat. 272, related to the eligibility of
    residents of the Trust Territory of the Pacific Islands. See
    section 1091(b) of this title.
      Section 1088b, Pub. L. 89-329, title IV, Sec. 493, formerly Sec.
    463, as added Pub. L. 90-575, title I, Sec. 152, Oct. 16, 1968, 82
    Stat. 1033; renumbered Sec. 493, Pub. L. 92-318, title I, Sec.
    137(b), June 23, 1972, 86 Stat. 272; amended Pub. L. 94-482, title
    I, Sec. 131(a), Oct. 12, 1976, 90 Stat. 2147; Pub. L. 95-43, Sec.
    1(a)(40), June 15, 1977, 91 Stat. 217, related to administration
    expenses. See section 1096 of this title.
      Section 1088b-1, Pub. L. 89-329, title IV, Sec. 493A, as added
    Pub. L. 94-482, title I, Sec. 131(b), Oct. 12, 1976, 90 Stat. 2148,
    related to institutional and financial assistance information for
    students. See section 1092 of this title.
      Section 1088b-2, Pub. L. 89-329, title IV, Sec. 493B, as added
    Pub. L. 94-482, title I, Sec. 131(b), Oct. 12, 1976, 90 Stat. 2149,
    related to student aid information services.
      Section 1088b-3, Pub. L. 89-329, title IV, Sec. 493C, as added
    Pub. L. 94-482, title I, Sec. 131(b), Oct. 12, 1976, 90 Stat. 2149,
    related to the student financial assistance training program.
      Section 1088c, Pub. L. 89-329, title IV, Sec. 494, formerly Sec.
    464, as added Pub. L. 90-575, title I, Sec. 152, Oct. 16, 1968, 82
    Stat. 1033; renumbered Sec. 494 and amended Pub. L. 92-318, title
    I, Secs. 137(b), 138(a), June 23, 1972, 86 Stat. 272, 280, related
    to maintenance of effort requirement.
      Section 1088d, Pub. L. 89-329, title IV, Sec. 495, as added Pub.
    L. 92-318, title I, Sec. 139, June 23, 1972, 86 Stat. 280; amended
    S. Res. 4, Feb. 4, 1977; S. Res. 30, Mar. 7, 1979, related to
    requirement that copies of rules, regulations, instructions, and
    application forms be supplied to Congressional committees. See
    section 1090(b) of this title.
      Section 1088e, Pub. L. 89-329, title IV, Sec. 496, as added Pub.
    L. 92-318, title I, Sec. 139A(a), June 23, 1972, 86 Stat. 281,
    related to transfer of funds between programs. See section 1095 of
    this title.
      Section 1088f, Pub. L. 89-329, title IV, Sec. 497, as added Pub.
    L. 92-318, title I, Sec. 139B(a), June 23, 1972, 86 Stat. 281;
    amended Pub. L. 94-482, title I, Sec. 132, Oct. 12, 1976, 90 Stat.
    2150; Pub. L. 95-566, Sec. 7, Nov. 1, 1978, 92 Stat. 2404, related
    to eligibility for student assistance. See section 1091 of this
    title.
      Section 1088f-1, Pub. L. 89-329, title IV, Sec. 497A, as added
    Pub. L. 94-482, title I, Sec. 133(a), Oct. 12, 1976, 90 Stat. 2150;
    amended Pub. L. 95-43, Sec. 1(a)(41), June 15, 1977, 91 Stat. 217;
    Pub. L. 95-561, title XII, Sec. 1231(b), Nov. 1, 1978, 92 Stat.
    2346, related to fiscal eligibility of institutions.
      Section 1088g, Pub. L. 89-329, title IV, Sec. 498, as added Pub.
    L. 92-318, title I, Sec. 139C(a), June 23, 1972, 86 Stat. 282,
    related to requirement of an affidavit of educational purpose.

                              EFFECTIVE DATE                          
      Section 360(b) of Pub. L. 103-382 provided that: "Subsection (a)
    [enacting this section] and the amendment made by subsection (a)
    shall take effect on July 1, 1994."

-End-



-CITE-
    20 USC Sec. 1089                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1089. Master calendar

-STATUTE-
    (a) Secretary required to comply with schedule
      To assure adequate notification and timely delivery of student
    aid funds under this subchapter and part C of subchapter I of
    chapter 34 of title 42, the Secretary shall adhere to the following
    calendar dates in the year preceding the award year:
        (1) Development and distribution of Federal and multiple data
      entry forms - 
          (A) by February 1: first meeting of the technical committee
        on forms design of the Department;
          (B) by March 1: proposed modifications and updates pursuant
        to section 1087rr of this title published in the Federal
        Register;
          (C) by June 1: final modifications and updates pursuant to
        section 1087rr of this title published in the Federal Register;
          (D) by August 15: application for Federal student assistance
        and multiple data entry data elements and instructions
        approved;
          (E) by August 30: final approved forms delivered to servicers
        and printers;
          (F) by October 1: Federal and multiple data entry forms and
        instructions printed; and
          (G) by November 1: Federal and multiple data entry forms,
        instructions, and training materials distributed.

        (2) Allocations of campus-based and Pell Grant funds - 
          (A) by August 1: distribution of institutional application
        for campus-based funds (FISAP) to institutions;
          (B) by October 1: final date for submission of FISAP by
        institutions to the Department;
          (C) by November 15: edited FISAP and computer printout
        received by institutions;
          (D) by December 1: appeals procedures received by
        institutions;
          (E) by December 15: edits returned by institutions to the
        Department;
          (F) by February 1: tentative award levels received by
        institutions and final Pell Grant payment schedule;
          (G) by February 15: closing date for receipt of institutional
        appeals by the Department;
          (H) by March 1: appeals process completed;
          (I) by April 1: final award notifications sent to
        institutions; and
          (J) by June 1: Pell Grant authorization levels sent to
        institutions.

        (3) The Secretary shall, to the extent practicable, notify
      eligible institutions, guaranty agencies, lenders, interested
      software providers, and, upon request, other interested parties,
      by December 1 prior to the start of an award year of minimal
      hardware and software requirements necessary to administer
      programs under this subchapter and part C of subchapter I of
      chapter 34 of title 42.
        (4) The Secretary shall attempt to conduct training activities
      for financial aid administrators and others in an expeditious and
      timely manner prior to the start of an award year in order to
      ensure that all participants are informed of all administrative
      requirements.
    (b) Timing for reallocations
      With respect to any funds reallocated under section 1070b-3(e)
    (!1) of this title, section 2752(e) (!1) of title 42, or section
    1087bb(j) (!1) of this title, the Secretary shall reallocate such
    funds at any time during the course of the year that will best meet
    the purpose of the programs under subpart 3 of part A of this
    subchapter, part C of subchapter I of chapter 34 of title 42, and
    part D of this subchapter, respectively. However, such reallocation
    shall occur at least once each year, not later than September 30 of
    that year.

    (c) Delay of effective date of late publications
      (1) Except as provided in paragraph (2), any regulatory changes
    initiated by the Secretary affecting the programs under this
    subchapter and part C of subchapter I of chapter 34 of title 42
    that have not been published in final form by November 1 prior to
    the start of the award year shall not become effective until the
    beginning of the second award year after such November 1 date.
      (2)(A) The Secretary may designate any regulatory provision that
    affects the programs under this subchapter and part C of subchapter
    I of chapter 34 of title 42 and is published in final form after
    November 1 as one that an entity subject to the provision may, in
    the entity's discretion, choose to implement prior to the effective
    date described in paragraph (1). The Secretary may specify in the
    designation when, and under what conditions, an entity may
    implement the provision prior to that effective date. The Secretary
    shall publish any designation under this subparagraph in the
    Federal Register.
      (B) If an entity chooses to implement a regulatory provision
    prior to the effective date described in paragraph (1), as
    permitted by subparagraph (A), the provision shall be effective
    with respect to that entity in accordance with the terms of the
    Secretary's designation.
    (d) Notice to Congress
      The Secretary shall notify the Committee on Labor and Human
    Resources of the Senate and the Committee on Education and Labor of
    the House of Representatives when a deadline included in the
    calendar described in subsection (a) of this section is not met.
    Nothing in this section shall be interpreted to penalize
    institutions or deny them the specified times allotted to enable
    them to return information to the Secretary based on the failure of
    the Secretary to adhere to the dates specified in this section.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 482, as added Pub. L. 99-498, title
    IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1477; amended Pub. L. 100-
    50, Sec. 15(2), June 3, 1987, 101 Stat. 355; Pub. L. 102-325,
    title IV, Sec. 482, July 23, 1992, 106 Stat. 612; Pub. L. 103-208,
    Sec. 2(h)(7), Dec. 20, 1993, 107 Stat. 2476; Pub. L. 104-66, title
    I, Sec. 1042(b), Dec. 21, 1995, 109 Stat. 715; Pub. L. 105-244,
    title IV, Sec. 481, Oct. 7, 1998, 112 Stat. 1732.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1070b-3 of this title, referred to in subsec. (b), was
    amended by Pub. L. 105-244, title IV, Sec. 406(c)(2)(D), Oct. 7,
    1998, 112 Stat. 1665, which redesignated subsecs. (e) and (f) as
    (d) and (e), respectively.
      Section 2752 of title 42, referred to in subsec. (b), was amended
    by Pub. L. 105-244, title IV, Sec. 442(b)(2), Oct. 7, 1998, 112
    Stat. 1712, which redesignated subsecs. (e) and (f) as (d) and (e),
    respectively.
      Section 1087bb(j) of this title, referred to in subsec. (b), was
    redesignated section 1087bb(i) by Pub. L. 105-244, title IV, Sec.
    462(a)(2)(H), Oct. 7, 1998, 112 Stat. 1721.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1089, Pub. L. 89-329, title IV, Sec. 482, as
    added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.
    1445; amended Pub. L. 97-35, title V, Sec. 533(a)(1), (2), (b),
    Aug. 13, 1981, 95 Stat. 453; Pub. L. 99-272, title XVI, Sec. 16031,
    Apr. 7, 1986, 100 Stat. 354, related to analysis of student's need
    for financial assistance, prior to the general revision of this
    part by Pub. L. 99-498.
      Another prior section 1089, Pub. L. 89-329, title IV, Sec. 499,
    formerly Sec. 469, as added Pub. L. 90-575, title I, Sec. 151, Oct.
    16, 1968, 82 Stat. 1032; amended Pub. L. 91-230, title IV, Sec.
    401(h)(4), Apr. 13, 1970, 84 Stat. 174; renumbered Pub. L. 92-318,
    title I, Sec. 137(b), June 23, 1972, 86 Stat. 272, related to the
    Advisory Council on Financial Aid to Students, prior to the general
    revision of this part by Pub. L. 96-374.

                                AMENDMENTS                            
      1998 - Subsec. (a)(3), (4). Pub. L. 105-244, Sec. 481(a), added
    pars. (3) and (4).
      Subsec. (c). Pub. L. 105-244, Sec. 481(b), amended heading and
    text of subsec. (c) generally. Prior to amendment, text read as
    follows: "Any regulatory changes initiated by the Secretary
    affecting the programs pursuant to this subchapter and part C of
    subchapter I of chapter 34 of title 42 that have not been published
    in final form by December 1 prior to the start of the award year
    shall not become effective until the beginning of the second award
    year after such December 1 date. For award year 1994-95, this
    subsection shall not require a delay in the effectiveness of
    regulatory changes affecting this part and parts B and G of this
    subchapter that are published in final form by May 1, 1994."
      1995 - Subsec. (d). Pub. L. 104-66, in first sentence substituted
    "a deadline included in the calendar described in subsection (a) of
    this section is not met" for "the items specified in the calendar
    have been completed and provide all relevant forms, rules, and
    instructions with such notice" and after first sentence struck out
    "When a deadline included in the calendar is not met, the
    Secretary, within 7 days, shall submit to the Committee on Labor
    and Human Resources of the Senate and the Committee on Education
    and Labor of the House of Representatives a written report,
    including proper documentation, as to why the deadline was not
    adhered to and a detailed plan for ensuring that subsequent dates
    are met."
      1993 - Subsec. (c). Pub. L. 103-208 inserted at end "For award
    year 1994-95, this subsection shall not require a delay in the
    effectiveness of regulatory changes affecting this part and parts B
    and G of this subchapter that are published in final form by May 1,
    1994."
      1992 - Subsec. (a)(1)(B), (C). Pub. L. 102-325, Sec. 482(b)(1),
    substituted "section 1087rr" for "sections 1070a-5 and 1087rr".
      Subsec. (b). Pub. L. 102-325, Sec. 482(b)(2), substituted
    "subpart 3" for "subpart 2".
      Subsec. (c). Pub. L. 102-325, Sec. 482(a), amended subsec. (c)
    generally. Prior to amendment, subsec. (c) read as follows: "Any
    additional regulatory changes initiated by the Secretary affecting
    the general administration of the programs pursuant to this
    subchapter and part C of subchapter I of chapter 34 of title 42
    that have not been published in final form by December 1 prior to
    the start of the award year shall not become effective until the
    beginning of the second award year after the December 1 date."
      1987 - Subsec. (b). Pub. L. 100-50 inserted reference to section
    1087bb(j) of this title and part D of this subchapter.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.
      Committee on Education and Labor of House of Representatives
    treated as referring to Committee on Economic and Educational
    Opportunities of House of Representatives by section 1(a) of Pub.
    L. 104-14, set out as a note preceding section 21 of Title 2, The
    Congress. Committee on Economic and Educational Opportunities of
    House of Representatives changed to Committee on Education and the
    Workforce of House of Representatives by House Resolution No. 5,
    One Hundred Fifth Congress, Jan. 7, 1997.


-MISC2-
                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as
    otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-
    244, set out as a note under section 1001 of this title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

      ESTABLISHMENT OF SEPARATE SYSTEMS OF NEED ANALYSIS FOR ACADEMIC
                     YEARS 1983-1984 THROUGH 1987-1988
      Pub. L. 97-301, Sec. 4, Oct. 13, 1982, 96 Stat. 1400, as amended
    by Pub. L. 98-79, Sec. 4(a), Aug. 15, 1983, 97 Stat. 480; Pub. L.
    98-511, title VII, Sec. 707(3), Oct. 19, 1984, 98 Stat. 2407; Pub.
    L. 99-498, title IV, Sec. 408(a)(1), Oct. 17, 1986, 100 Stat. 1495,
    which required Secretary of Education to establish or approve
    separate systems of need analysis for the academic years 1983-1984,
    1984-1985, 1985-1986, 1986-1987, and 1987-1988 for the programs
    authorized under subpart 2 [now 3] of part A [20 U.S.C. 1070b et
    seq.], part C [42 U.S.C. 2751 et seq.], and part E [20 U.S.C.
    1087aa et seq.] of title IV of the Higher Education Act of 1965,
    was repealed by Pub. L. 99-498, title IV, Sec. 408(b), Oct. 17,
    1986, 100 Stat. 1495, eff. with respect to any academic year
    beginning on or after July 1, 1988.

      DETERMINATION OF INDEPENDENT STUDENT STATUS FOR ACADEMIC YEARS
                        1982-1983 THROUGH 1987-1988
      Pub. L. 97-301, Sec. 6, Oct. 13, 1982, 96 Stat. 1400, as amended
    by Pub. L. 98-79, Sec. 4(a), Aug. 15, 1983, 97 Stat. 481; Pub. L.
    98-516, title VII, Sec. 707(3), Oct. 19, 1984, 98 Stat. 2407; Pub.
    L. 99-498, title IV, Sec. 408(a)(1), Oct. 17, 1986, 100 Stat. 1495,
    which provided that notwithstanding any rule or regulation, the
    criteria for the determination of independent student status,
    prescribed under subsec. (c)(2) of this section, in effect for
    academic year 1982-1983, was to be the criteria for such
    determinations for each of the academic years 1983-1984, 1984-1985,
    1985-1986, 1986-1987, and 1987-1988, was repealed by Pub. L. 99-
    498, title IV, Sec. 408(b), Oct. 17, 1986, 100 Stat. 1495, eff.
    with respect to any academic year beginning on or after July 1,
    1988.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1090                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1090. Forms and regulations

-STATUTE-
    (a) Common financial aid form development and processing
      (1) Single form required
        The Secretary, in cooperation with representatives of agencies
      and organizations involved in student financial assistance, shall
      produce, distribute, and process free of charge a common
      financial reporting form to be used to determine the need and
      eligibility of a student for financial assistance under parts A
      through D of this subchapter and part C of subchapter I of
      chapter 34 of title 42 (other than under subpart 4 of part A of
      this subchapter). The Secretary shall include on the form
      developed under this subsection such data items as the Secretary
      determines are appropriate for inclusion. Such items shall be
      selected in consultation with States to assist in the awarding of
      State financial assistance. In no case shall the number of such
      data items be less than the number included on the form on
      October 7, 1998. Such form shall satisfy the requirements of
      section 1070a(d) of this title.
      (2) Charges to students and parents for use of form prohibited
        The common financial reporting form prescribed by the Secretary
      under paragraph (1) shall be produced, distributed, and processed
      by the Secretary and no parent or student shall be charged a fee
      for the collection, processing, or delivery of financial aid
      through the use of such form. The need and eligibility of a
      student for financial assistance under parts A through D of this
      subchapter and part C of subchapter I of chapter 34 of title 42
      (other than under subpart 4 of part A of this subchapter) may
      only be determined by using the form developed by the Secretary
      pursuant to paragraph (1) of this subsection. No student may
      receive assistance under parts A through D of this subchapter and
      part C of subchapter I of chapter 34 of title 42 (other than
      under subpart 4 of part A of this subchapter), except by use of
      the form developed by the Secretary pursuant to this section. No
      data collected on a form for which a fee is charged shall be used
      to complete the form prescribed under paragraph (1).
      (3) Distribution of data
        Institutions of higher education, guaranty agencies, and States
      shall receive, without charge, the data collected by the
      Secretary using the form developed pursuant to this section for
      the purposes of processing loan applications and determining need
      and eligibility for institutional and State financial aid awards.
      Entities designated by institutions of higher education, guaranty
      agencies, or States to receive such data shall be subject to all
      the requirements of this section, unless such requirements are
      waived by the Secretary.
      (4) Contracts for collection and processing
        (A) The Secretary shall, to the extent practicable, enter into
      not less than 5 contracts with States, institutions of higher
      education, or private organizations for the purposes of the
      timely collection and processing of the form developed pursuant
      to paragraph (1) and the timely delivery of the data submitted on
      such form. The Secretary shall use such contracts to assist
      States and institutions of higher education with the collection
      of additional data required to award State or institutional
      financial assistance, except that the Secretary shall not include
      these additional data items on the common financial reporting
      form developed pursuant to this section. The Secretary shall
      include in each such contract a requirement that - 
          (i) any charges by the contractor to the student or parent
        for additional data items required by a State or institution
        for any purpose (regardless of the method of collection) shall
        be reasonable and shall not exceed the marginal cost of
        collecting, processing, and delivering such additional data,
        taking into account any payment received by the contractor to
        produce, distribute, and process the common financial reporting
        form prescribed by the Secretary pursuant to paragraph (1); and
          (ii) the contractor will require any person or entity to whom
        the contractor provides such additional data to agree not to
        collect from any student or parent any charge that would not be
        permitted under this subparagraph for any such additional data.

        (B) To the extent practicable, the Secretary shall ensure that
      at least one contractor, or a portion of one contract, under this
      paragraph will serve graduate and professional students.
        (C) As part of the procurement process for the 1993-1994 award
      year, and for all procurements thereafter pertaining to the
      contracts under this paragraph, the Secretary shall require all
      entities competing for such contracts to comply with all
      requirements of this subsection and to - 
          (i) use the common financial reporting form as prescribed in
        paragraph (1), which shall be clearly identified as the "Free
        Application for Federal Student Aid"; and
          (ii) use a common, simplified reapplication form as the
        Secretary shall prescribe pursuant to subsection (b) of this
        section, in each award year.

        (D) The Secretary shall reimburse all approved contractors at a
      reasonable predetermined rate for processing such applications,
      for issuing eligibility reports, and for carrying out other
      services or requirements that may be prescribed by the Secretary.
        (E) All approved contractors shall be required to adhere to all
      editing, processing, and reporting requirements established by
      the Secretary to ensure consistency.
        (F) No approved contractor shall enter into exclusive
      arrangements with guarantors, lenders, secondary markets, or
      institutions of higher education for the purpose of reselling or
      sharing of data collected for the multiple data entry process.
      All data collected under a contract issued by the Secretary
      pursuant to this paragraph for the multiple data entry process is
      the exclusive property of the Secretary and may not be
      transferred to a third party by an approved contractor without
      the Secretary's express written approval.
      (5) Electronic forms
        (A) The Secretary, in cooperation with representatives of
      agencies and organizations involved in student financial
      assistance, including private computer software providers, shall
      develop an electronic version of the form described in paragraph
      (1). As permitted by the Secretary, such an electronic version
      shall not require a signature to be collected at the time such
      version is submitted, if a signature is subsequently submitted by
      the applicant. The Secretary shall prescribe such version not
      later than 120 days after October 7, 1998.
        (B) Nothing in this section shall be construed to prohibit the
      use of the form developed by the Secretary pursuant to
      subparagraph (A) by an eligible institution, eligible lender,
      guaranty agency, State grant agency, private computer software
      providers, a consortium thereof, or such other entities as the
      Secretary may designate.
        (C) No fee shall be charged to students in connection with the
      use of the electronic version of the form, or of any other
      electronic forms used in conjunction with such form in applying
      for Federal or State student financial assistance.
        (D) The Secretary shall ensure that data collection complies
      with section 552a of title 5 and that any entity using the
      electronic version of the form developed by the Secretary
      pursuant to subparagraph (A) shall maintain reasonable and
      appropriate administrative, technical, and physical safeguards to
      ensure the integrity and confidentiality of the information, and
      to protect against security threats, or unauthorized uses or
      disclosures of the information provided on the electronic version
      of the form. Data collected by such version of the form shall be
      used only for the application, award, and administration of aid
      awarded under this subchapter and part C of subchapter I of
      chapter 34 of title 42, State aid, or aid awarded by eligible
      institutions or such entities as the Secretary may designate. No
      data collected by such version of the form shall be used for
      making final aid awards under this subchapter and part C of
      subchapter I of chapter 34 of title 42 until such data have been
      processed by the Secretary or a contractor or designee of the
      Secretary.
      (6) Third party servicers and private software providers
        To the extent practicable and in a timely manner, the Secretary
      shall provide, to private organizations and consortia that
      develop software used by eligible institutions for the
      administration of funds under this subchapter and part C of
      subchapter I of chapter 34 of title 42, all the necessary
      specifications that the organizations and consortia must meet for
      the software the organizations and consortia develop, produce,
      and distribute (including any diskette, modem, or network
      communications) which are so used. The specifications shall
      contain record layouts for required data. The Secretary shall
      develop in advance of each processing cycle an annual schedule
      for providing such specifications. The Secretary, to the extent
      practicable, shall use means of providing such specifications,
      including conferences and other meetings, outreach, and technical
      support mechanisms (such as training and printed reference
      materials). The Secretary shall, from time to time, solicit from
      such organizations and consortia means of improving the support
      provided by the Secretary.
      (7) Parent's social security number and birth date
        The Secretary is authorized to include on the form developed
      under this subsection space for the social security number and
      birth date of parents of dependent students seeking financial
      assistance under this subchapter and part C of subchapter I of
      chapter 34 of title 42.
    (b) Streamlined reapplication process
      (1) The Secretary shall develop a streamlined reapplication form
    and process, including electronic reapplication process, consistent
    with the requirements of subsection (a) of this section, for those
    recipients who apply for financial aid funds under this subchapter
    and part C of subchapter I of chapter 34 of title 42 in the next
    succeeding academic year subsequent to the initial year in which
    such recipients apply.
      (2) The Secretary shall develop appropriate mechanisms to support
    reapplication.
      (3) The Secretary shall determine, in cooperation with States,
    institutions of higher education, agencies and organizations
    involved in student financial assistance, the data elements that
    can be updated from the previous academic year's application.
      (4) Nothing in this subchapter and part C of subchapter I of
    chapter 34 of title 42 shall be interpreted as limiting the
    authority of the Secretary to reduce the number of data elements
    required of reapplicants.
      (5) Individuals determined to have a zero family contribution
    pursuant to section 1087ss of this title shall not be required to
    provide any financial data, except that which is necessary to
    determine eligibility under that section.
    (c) Information to committees of Congress
      Copies of all rules, regulations, guidelines, instructions, and
    application forms published or promulgated pursuant to this
    subchapter and part C of subchapter I of chapter 34 of title 42
    shall be provided to the Committee on Labor and Human Resources of
    the Senate and the Committee on Education and the Workforce of the
    House of Representatives at least 45 days prior to their effective
    date.
    (d) Toll-free information
      The Secretary shall contract for, or establish, and publicize a
    toll-free telephone service to provide timely and accurate
    information to the general public. The information provided shall
    include specific instructions on completing the application form
    for assistance under this subchapter and part C of subchapter I of
    chapter 34 of title 42. Such service shall also include a service
    accessible by telecommunications devices for the deaf (TDD's) and
    shall, in addition to the services provided for in the previous
    sentence, refer such students to the national clearinghouse on
    postsecondary education that is authorized under section
    1485(d)(2)(C) of this title.
    (e) Preparer
      Any financial aid application required to be made under this
    subchapter and part C of subchapter I of chapter 34 of title 42
    shall include the name, signature, address or employer's address,
    social security number or employer identification number, and
    organizational affiliation of the preparer of such financial aid
    application.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 483, as added Pub. L. 99-498, title
    IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1478; amended Pub. L. 100-
    50, Sec. 15(3)-(6), June 3, 1987, 101 Stat. 356; Pub. L. 102-325,
    title IV, Sec. 483, July 23, 1992, 106 Stat. 612; Pub. L. 103-208,
    Sec. 2(h)(8)-(12), Dec. 20, 1993, 107 Stat. 2476; Pub. L. 105-244,
    title IV, Sec. 482, Oct. 7, 1998, 112 Stat. 1733.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1090, Pub. L. 89-329, title IV, Sec. 483, as
    added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.
    1448, related to forms and regulations for student assistance
    programs, prior to the general revision of this part by Pub. L. 99-
    498.

                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-244, Sec. 482(a)(1), substituted
    "form development" for "form" in heading.
      Subsec. (a)(1). Pub. L. 105-244, Sec. 482(a)(2)(D), struck out at
    end "For the purpose of collecting eligibility and other data for
    the purpose of part B of this subchapter, the Secretary shall
    develop a separate, identifiable loan application document
    (pursuant to section 1082(m) of this title) that applicants or
    institutions in which the students are enrolled or accepted for
    enrollment shall submit directly to eligible lenders and on which
    the applicant shall clearly indicate a choice of a lender."
      Pub. L. 105-244, Sec. 482(a)(2)(C), substituted "The Secretary
    shall include on the form developed under this subsection such data
    items as the Secretary determines are appropriate for inclusion.
    Such items shall be selected in consultation with States to assist
    in the awarding of State financial assistance. In no case shall the
    number of such data items be less than the number included on the
    form on October 7, 1998." for "The Secretary may include on the
    form developed pursuant to this paragraph not more than eight
    nonfinancial data items selected in consultation with the States to
    assist the States in awarding State student financial assistance."
      Pub. L. 105-244, Sec. 482(a)(2)(A), (B), substituted "A through
    D" for "A, C, and D" and struck out "and to determine the need of a
    student for the purpose of part B of this subchapter" after "part A
    of this subchapter)".
      Subsec. (a)(2). Pub. L. 105-244, Sec. 482(a)(3), substituted "A
    through D" for "A, C, and D" in two places and struck out "and the
    need of a student for the purpose of part B of this subchapter,"
    before "may only be determined" and "or have the student's need
    established for the purpose of part B of this subchapter" before ",
    except by use of".
      Subsec. (a)(3). Pub. L. 105-244, Sec. 482(a)(4), amended heading
    and text of par. (3) generally. Prior to amendment, text read as
    follows: "Institutions of higher education and States shall
    receive, without charge, the data collected by the Secretary using
    the form developed pursuant to this section for the purposes of
    determining need and eligibility for institutional and State
    financial aid awards. Entities designated by institutions of higher
    education or States to receive such data shall be subject to all
    requirements of this section, unless such requirements are waived
    by the Secretary."
      Subsec. (a)(5) to (7). Pub. L. 105-244, Sec. 482(a)(5), added
    pars. (5) to (7).
      Subsec. (b)(1). Pub. L. 105-244, Sec. 482(b), struck out ",
    within 240 days after July 23, 1992," after "The Secretary shall".
      Subsec. (c). Pub. L. 105-244, Sec. 482(c), substituted "and the
    Workforce" for "and Labor".
      Subsec. (d). Pub. L. 105-244, Sec. 482(d), substituted "section
    1485(d)(2)(C)" for "section 1433(c)".
      Subsec. (f). Pub. L. 105-244, Sec. 482(e), struck out heading and
    text of subsec. (f). Text read as follows: "Nothing in section 1544
    of the Higher Education Amendments of 1992 shall relieve processors
    or institutions of higher education of any or all obligations under
    this section."
      1993 - Subsec. (a)(1). Pub. L. 103-208, Sec. 2(h)(8), made
    technical amendment to reference to section 1070a(d) of this title
    to correct reference to corresponding section of original act.
      Subsec. (a)(2). Pub. L. 103-208, Sec. 2(h)(9), inserted at end
    "No data collected on a form for which a fee is charged shall be
    used to complete the form prescribed under paragraph (1)."
      Subsec. (a)(3). Pub. L. 103-208, Sec. 2(h)(10), inserted at end
    "Entities designated by institutions of higher education or States
    to receive such data shall be subject to all requirements of this
    section, unless such requirements are waived by the Secretary."
      Subsecs. (d), (e). Pub. L. 103-208, Sec. 2(h)(12), redesignated
    subsecs. (e) and (f) as (d) and (e), respectively.
      Subsec. (f). Pub. L. 103-208, Sec. 2(h)(12), redesignated subsec.
    (g) as (f). Former subsec. (f) redesignated (e).
      Pub. L. 103-208, Sec. 2(h)(11), substituted "address or
    employer's address, social security number or employer
    identification number," for "address, social security number,".
      Subsec. (g). Pub. L. 103-208, Sec. 2(h)(12), redesignated subsec.
    (g) as (f).
      1992 - Subsec. (a). Pub. L. 102-325, Sec. 483(a), added subsec.
    (a) and struck out former subsec. (a) which contained pars. (1) to
    (5) relating to a common financial aid form and processing of
    financial aid applications.
      Subsec. (b). Pub. L. 102-325, Sec. 483(a), added subsec. (b) and
    struck out former subsec. (b) which related to certifications of
    capability of systems for determining expected family
    contributions.
      Subsec. (d). Pub. L. 102-325, Sec. 483(b)(1), struck out subsec.
    (d) which related to provision of early notice to students of their
    potential eligibility for financial aid.
      Subsec. (e). Pub. L. 102-325, Sec. 483(b)(2), amended subsec. (e)
    generally. Prior to amendment, subsec. (e) read as follows: "The
    Secretary shall contract for, or establish, and publicize a toll-
    free telephone number to provide timely and accurate information
    to the general public. The information provided shall include
    specific instructions on completing application forms for
    assistance under this subchapter and part C of subchapter I of
    chapter 34 of title 42."
      Subsecs. (f), (g). Pub. L. 102-325, Sec. 483(b)(1), (3), added
    subsecs. (f) and (g) and struck out former subsec. (f) which
    related to notice of student aid receipt.
      1987 - Subsec. (a)(1). Pub. L. 100-50, Sec. 15(3), (4), inserted
    in second sentence "or institutions in which the students are
    enrolled or accepted for enrollment" after "that applicants" and
    "and on which the applicant shall clearly indicate a choice of
    lender" before period at end.
      Subsec. (a)(2). Pub. L. 100-50, Sec. 15(5), substituted "not less
    than 5" for "not less than 3" and inserted sentence at end
    providing that the Secretary not select new multiple data entry
    processors until certain examinations and recommendations are made
    by the Advisory Commission on Student Financial Assistance.
      Subsecs. (b) to (f). Pub. L. 100-50, Sec. 15(6), added subsec.
    (b) and redesignated former subsecs. (b) to (e) as (c) to (f),
    respectively.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as
    otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-
    244, set out as a note under section 1001 of this title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

                              EFFECTIVE DATE                          
      Section effective Oct. 17, 1986, except as otherwise provided,
    see section 2 of Pub. L. 99-498, set out as a note under section
    1001 of this title.
      Subsec. (e) of this section applicable to student assistance
    awarded for periods of enrollment beginning on or after July 1,
    1987, see section 407(b) of Pub. L. 99-498, set out as a note under
    section 1091 of this title.

-End-



-CITE-
    20 USC Sec. 1091                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1091. Student eligibility

-STATUTE-
    (a) In general
      In order to receive any grant, loan, or work assistance under
    this subchapter and part C of subchapter I of chapter 34 of title
    42, a student must - 
        (1) be enrolled or accepted for enrollment in a degree,
      certificate, or other program (including a program of study
      abroad approved for credit by the eligible institution at which
      such student is enrolled) leading to a recognized educational
      credential at an institution of higher education that is an
      eligible institution in accordance with the provisions of section
      1094 of this title, except as provided in subsections (b)(3) and
      (b)(4) of this section, and not be enrolled in an elementary or
      secondary school;
        (2) if the student is presently enrolled at an institution, be
      maintaining satisfactory progress in the course of study the
      student is pursuing in accordance with the provisions of
      subsection (c) of this section;
        (3) not owe a refund on grants previously received at any
      institution under this subchapter and part C of subchapter I of
      chapter 34 of title 42, or be in default on any loan from a
      student loan fund at any institution provided for in part D of
      this subchapter, or a loan made, insured, or guaranteed by the
      Secretary under this subchapter and part C of subchapter I of
      chapter 34 of title 42 for attendance at any institution;
        (4) file with the Secretary, as part of the original financial
      aid application process, a certification,,(!1) which need not be
      notarized, but which shall include - 

          (A) a statement of educational purpose stating that the money
        attributable to such grant, loan, or loan guarantee will be
        used solely for expenses related to attendance or continued
        attendance at such institution; and
          (B) such student's social security number, except that the
        provisions of this subparagraph shall not apply to a student
        from the Republic of the Marshall Islands, the Federated States
        of Micronesia, or the Republic of Palau;

        (5) be a citizen or national of the United States, a permanent
      resident of the United States, able to provide evidence from the
      Immigration and Naturalization Service that he or she is in the
      United States for other than a temporary purpose with the
      intention of becoming a citizen or permanent resident,(!2) a
      citizen of any one of the Freely Associated States; and

        (6) if the student has been convicted of, or has pled nolo
      contendere or guilty to, a crime involving fraud in obtaining
      funds under this subchapter and part C of subchapter I of chapter
      34 of title 42, have completed the repayment of such funds to the
      Secretary, or to the holder in the case of a loan under this
      subchapter and part C of subchapter I of chapter 34 of title 42
      obtained by fraud.
    (b) Eligibility for student loans
      (1) In order to be eligible to receive any loan under this
    subchapter and part C of subchapter I of chapter 34 of title 42
    (other than a loan under section 1078-2 or 1078-3 of this title)
    for any period of enrollment, a student who is not a graduate or
    professional student (as defined in regulations of the Secretary),
    and who is enrolled in a program at an institution which has a
    participation agreement with the Secretary to make awards under
    subpart 1 of part A of this subchapter, shall - 
        (A)(i) have received a determination of eligibility or
      ineligibility for a Pell Grant under such subpart 1 for such
      period of enrollment; and (ii) if determined to be eligible, have
      filed an application for a Pell Grant for such enrollment period;
      or
        (B) have (A) filed an application with the Pell Grant processor
      for such institution for such enrollment period, and (B) received
      from the financial aid administrator of the institution a
      preliminary determination of the student's eligibility or
      ineligibility for a grant under such subpart 1.

      (2) In order to be eligible to receive any loan under section
    1078-1 (!3) of this title for any period of enrollment, a student
    shall - 

        (A) have received a determination of need for a loan under
      section 1078(a)(2)(B) of this title;
        (B) if determined to have need for a loan under section 1078 of
      this title, have applied for such a loan; and
        (C) has applied for a loan under section 1078-8 of this title,
      if such student is eligible to apply for such a loan.

      (3) A student who - 
        (A) is carrying at least one-half the normal full-time work
      load for the course of study that the student is pursuing, as
      determined by an eligible institution, and
        (B) is enrolled in a course of study necessary for enrollment
      in a program leading to a degree or certificate,

    shall be, notwithstanding paragraph (1) of subsection (a) of this
    section, eligible to apply for loans under part B or C of this
    subchapter. The eligibility described in this paragraph shall be
    restricted to one 12-month period.
      (4) A student who - 
        (A) is carrying at least one-half the normal full-time work
      load for the course of study the student is pursuing, as
      determined by the institution, and
        (B) is enrolled or accepted for enrollment in a program at an
      eligible institution necessary for a professional credential or
      certification from a State that is required for employment as a
      teacher in an elementary or secondary school in that State,

    shall be, notwithstanding paragraph (1) of subsection (a) of this
    section, eligible to apply for loans under part B, C, or D of this
    subchapter or work-study assistance under part C of subchapter I of
    chapter 34 of title 42.
      (5) Notwithstanding any other provision of this subsection, no
    incarcerated student is eligible to receive a loan under this
    subchapter and part C of subchapter I of chapter 34 of title 42.
    (c) Satisfactory progress
      (1) For the purpose of subsection (a)(2) of this section, a
    student is maintaining satisfactory progress if - 
        (A) the institution at which the student is in attendance,
      reviews the progress of the student at the end of each academic
      year, or its equivalent, as determined by the institution, and
        (B) the student has a cumulative C average, or its equivalent
      or academic standing consistent with the requirements for
      graduation, as determined by the institution, at the end of the
      second such academic year.

      (2) Whenever a student fails to meet the eligibility requirements
    of subsection (a)(2) of this section as a result of the application
    of this subsection and subsequent to that failure the student has
    academic standing consistent with the requirements for graduation,
    as determined by the institution, for any grading period, the
    student may, subject to this subsection, again be eligible under
    subsection (a)(2) of this section for a grant, loan, or work
    assistance under this subchapter and part C of subchapter I of
    chapter 34 of title 42.
      (3) Any institution of higher education at which the student is
    in attendance may waive the provisions of paragraph (1) or
    paragraph (2) of this subsection for undue hardship based on - 
        (A) the death of a relative of the student,
        (B) the personal injury or illness of the student, or
        (C) special circumstances as determined by the institution.
    (d) Students who are not high school graduates
      In order for a student who does not have a certificate of
    graduation from a school providing secondary education, or the
    recognized equivalent of such certificate, to be eligible for any
    assistance under subparts 1, 3, and 4 of part A and parts B, C, and
    D of this subchapter and part C of subchapter I of chapter 34 of
    title 42, the student shall meet one of the following standards:
        (1) The student shall take an independently administered
      examination and shall achieve a score, specified by the
      Secretary, demonstrating that such student can benefit from the
      education or training being offered. Such examination shall be
      approved by the Secretary on the basis of compliance with such
      standards for development, administration, and scoring as the
      Secretary may prescribe in regulations.
        (2) The student shall be determined as having the ability to
      benefit from the education or training in accordance with such
      process as the State shall prescribe. Any such process described
      or approved by a State for the purposes of this section shall be
      effective 6 months after the date of submission to the Secretary
      unless the Secretary disapproves such process. In determining
      whether to approve or disapprove such process, the Secretary
      shall take into account the effectiveness of such process in
      enabling students without high school diplomas or the equivalent
      thereof to benefit from the instruction offered by institutions
      utilizing such process, and shall also take into account the
      cultural diversity, economic circumstances, and educational
      preparation of the populations served by the institutions.
        (3) The student has completed a secondary school education in a
      home school setting that is treated as a home school or private
      school under State law.
    (e) Certification for GSL eligibility
      Each eligible institution may certify student eligibility for a
    loan by an eligible lender under part B of this subchapter prior to
    completing the review for accuracy of the information submitted by
    the applicant required by regulations issued under this subchapter
    and part C of subchapter I of chapter 34 of title 42, if - 
        (1) checks for the loans are mailed to the eligible institution
      prior to disbursements;
        (2) the disbursement is not made until the review is complete;
      and
        (3) the eligible institution has no evidence or documentation
      on which the institution may base a determination that the
      information submitted by the applicant is incorrect.
    (f) Loss of eligibility for violation of loan limits
      (1) No student shall be eligible to receive any grant, loan, or
    work assistance under this subchapter and part C of subchapter I of
    chapter 34 of title 42 if the eligible institution determines that
    the student fraudulently borrowed in violation of the annual loan
    limits under part B, part C, or part D of this subchapter in the
    same academic year, or if the student fraudulently borrowed in
    excess of the aggregate maximum loan limits under such part B, part
    C, or part D.
      (2) If the institution determines that the student inadvertently
    borrowed amounts in excess of such annual or aggregate maximum loan
    limits, such institution shall allow the student to repay any
    amount borrowed in excess of such limits prior to certifying the
    student's eligibility for further assistance under this subchapter
    and part C of subchapter I of chapter 34 of title 42.
    (g) Verification of immigration status
      (1) In general
        The Secretary shall implement a system under which the
      statements and supporting documentation, if required, of an
      individual declaring that such individual is in compliance with
      the requirements of subsection (a)(5) of this section shall be
      verified prior to the individual's receipt of a grant, loan, or
      work assistance under this subchapter and part C of subchapter I
      of chapter 34 of title 42.
      (2) Special rule
        The documents collected and maintained by an eligible
      institution in the admission of a student to the institution may
      be used by the student in lieu of the documents used to establish
      both employment authorization and identity under section
      1324a(b)(1)(B) of title 8 to verify eligibility to participate in
      work-study programs under part C of subchapter I of chapter 34 of
      title 42.
      (3) Verification mechanisms
        The Secretary is authorized to verify such statements and
      supporting documentation through a data match, using an automated
      or other system, with other Federal agencies that may be in
      possession of information relevant to such statements and
      supporting documentation.
      (4) Review
        In the case of such an individual who is not a citizen or
      national of the United States, if the statement described in
      paragraph (1) is submitted but the documentation required under
      paragraph (2) is not presented or if the documentation required
      under paragraph (2)(A) is presented but such documentation is not
      verified under paragraph (3) - 
          (A) the institution - 
            (i) shall provide a reasonable opportunity to submit to the
          institution evidence indicating a satisfactory immigration
          status, and
            (ii) may not delay, deny, reduce, or terminate the
          individual's eligibility for the grant, loan, or work
          assistance on the basis of the individual's immigration
          status until such a reasonable opportunity has been provided;
          and

          (B) if there are submitted documents which the institution
        determines constitute reasonable evidence indicating such
        status - 
            (i) the institution shall transmit to the Immigration and
          Naturalization Service either photostatic or other similar
          copies of such documents, or information from such documents,
          as specified by the Immigration and Naturalization Service,
          for official verification,
            (ii) pending such verification, the institution may not
          delay, deny, reduce, or terminate the individual's
          eligibility for the grant, loan, or work assistance on the
          basis of the individual's immigration status, and
            (iii) the institution shall not be liable for the
          consequences of any action, delay, or failure of the Service
          to conduct such verification.
    (h) Limitations of enforcement actions against institutions
      The Secretary shall not take any compliance, disallowance,
    penalty, or other regulatory action against an institution of
    higher education with respect to any error in the institution's
    determination to make a student eligible for a grant, loan, or work
    assistance based on citizenship or immigration status - 
        (1) if the institution has provided such eligibility based on a
      verification of satisfactory immigration status by the
      Immigration and Naturalization Service,
        (2) because the institution, under subsection (h)(4)(A)(i) (!4)
      of this section, was required to provide a reasonable opportunity
      to submit documentation, or

        (3) because the institution, under subsection (h)(4)(B)(i) (!4)
      of this section, was required to wait for the response of the
      Immigration and Naturalization Service to the institution's
      request for official verification of the immigration status of
      the student.
    (i) Validity of loan guarantees for loan payments made before
      immigration status verification completed
      Notwithstanding subsection (h) (!4) of this section, if - 
        (1) a guaranty is made under this subchapter and part C of
      subchapter I of chapter 34 of title 42 for a loan made with
      respect to an individual,
        (2) at the time the guaranty is entered into, the provisions of
      subsection (h) (!4) of this section had been complied with,
        (3) amounts are paid under the loan subject to such guaranty,
      and
        (4) there is a subsequent determination that, because of an
      unsatisfactory immigration status, the individual is not eligible
      for the loan,

    the official of the institution making the determination shall
    notify and instruct the entity making the loan to cease further
    payments under the loan, but such guaranty shall not be voided or
    otherwise nullified with respect to such payments made before the
    date the entity receives the notice.
    (j) Assistance under subparts 1 and 3 of part A, and part C
      Notwithstanding any other provision of law, a student shall be
    eligible until September 30, 2004, for assistance under subparts 1
    and 3 of part A of this subchapter, and part C of subchapter I of
    chapter 34 of title 42, if the student is otherwise qualified and -
    
        (1) is a citizen of any one of the Freely Associated States and
      attends an institution of higher education in a State or a public
      or nonprofit private institution of higher education in the
      Freely Associated States; or
        (2) meets the requirements of subsection (a)(5) of this section
      and attends a public or nonprofit private institution of higher
      education in any one of the Freely Associated States.
    (k) Special rule for correspondence courses
      A student shall not be eligible to receive grant, loan, or work
    assistance under this subchapter and part C of subchapter I of
    chapter 34 of title 42 for a correspondence course unless such
    course is part of a program leading to an associate, bachelor or
    graduate degree.
    (l) Courses offered through telecommunications
      (1) Relation to correspondence courses
        (A) In general
          A student enrolled in a course of instruction at an
        institution of higher education that is offered in whole or in
        part through telecommunications and leads to a recognized
        certificate, or a recognized associate, baccalaureate, or
        graduate degree, conferred by such institution, shall not be
        considered to be enrolled in correspondence courses.
        (B) Exception
          Subparagraph (A) shall not apply to an institution or school
        described in section 2302(3)(C) of this title.
      (2) Restriction or reductions of financial aid
        A student's eligibility to receive grants, loans, or work
      assistance under this subchapter and part C of subchapter I of
      chapter 34 of title 42 shall be reduced if a financial aid
      officer determines under the discretionary authority provided in
      section 1087tt of this title that telecommunications instruction
      results in a substantially reduced cost of attendance to such
      student.
      (3) Special rule
        For award years prior to July 23, 1992, the Secretary shall not
      take any compliance, disallowance, penalty, or other action
      against a student or an eligible institution when such action
      arises out of such institution's prior award of student
      assistance under this subchapter and part C of subchapter I of
      chapter 34 of title 42 if the institution demonstrates to the
      satisfaction of the Secretary that its course of instruction
      would have been in conformance with the requirements of this
      subsection.
      (4) "Telecommunications" defined
        For the purposes of this subsection, the term
      "telecommunications" means the use of television, audio, or
      computer transmission, including open broadcast, closed circuit,
      cable, microwave, or satellite, audio conferencing, computer
      conferencing, or video cassettes or discs, except that such term
      does not include a course that is delivered using video cassette
      or disc recordings at such institution and that is not delivered
      in person to other students of that institution.
    (m) Students with a first baccalaureate or professional degree
      A student shall not be ineligible for assistance under parts B,
    C, and D of this subchapter and part C of subchapter I of chapter
    34 of title 42 because such student has previously received a
    baccalaureate or professional degree.
    (n) Data base matching
      To enforce the Selective Service registration provisions of
    section 1113 of Public Law 97-252, the Secretary shall conduct data
    base matches with the Selective Service, using common demographic
    data elements. Appropriate confirmation, through an application
    output document or through other means, of any person's
    registration shall fulfill the requirement to file a separate
    statement of compliance. In the absence of a confirmation from such
    data matches, an institution may also use data or documents that
    support either the student's registration, or the absence of a
    registration requirement for the student, to fulfill the
    requirement to file a separate statement of compliance. The
    mechanism for reporting the resolution of nonconfirmed matches
    shall be prescribed by the Secretary in regulations.
    (o) Study abroad
      Nothing in this chapter shall be construed to limit or otherwise
    prohibit access to study abroad programs approved by the home
    institution at which a student is enrolled. An otherwise eligible
    student who is engaged in a program of study abroad approved for
    academic credit by the home institution at which the student is
    enrolled shall be eligible to receive grant, loan, or work
    assistance under this subchapter and part C of subchapter I of
    chapter 34 of title 42, without regard to whether such study abroad
    program is required as part of the student's degree program.
    (p) Verification of social security number
      The Secretary of Education, in cooperation with the Commissioner
    of the Social Security Administration, shall verify any social
    security number provided by a student to an eligible institution
    under subsection (a)(4) of this section and shall enforce the
    following conditions:
        (1) Except as provided in paragraphs (2) and (3), an
      institution shall not deny, reduce, delay, or terminate a
      student's eligibility for assistance under this part because
      social security number verification is pending.
        (2) If there is a determination by the Secretary that the
      social security number provided to an eligible institution by a
      student is incorrect, the institution shall deny or terminate the
      student's eligibility for any grant, loan, or work assistance
      under this subchapter and part C of subchapter I of chapter 34 of
      title 42 until such time as the student provides documented
      evidence of a social security number that is determined by the
      institution to be correct.
        (3) If there is a determination by the Secretary that the
      social security number provided to an eligible institution by a
      student is incorrect, and a correct social security number cannot
      be provided by such student, and a loan has been guaranteed for
      such student under part B of this subchapter, the institution
      shall notify and instruct the lender and guaranty agency making
      and guaranteeing the loan, respectively, to cease further
      disbursements of the loan, but such guaranty shall not be voided
      or otherwise nullified with respect to such disbursements made
      before the date that the lender and the guaranty agency receives
      such notice.
        (4) Nothing in this subsection shall permit the Secretary to
      take any compliance, disallowance, penalty, or other regulatory
      action against - 
          (A) any institution of higher education with respect to any
        error in a social security number, unless such error was a
        result of fraud on the part of the institution; or
          (B) any student with respect to any error in a social
        security number, unless such error was a result of fraud on the
        part of the student.
    (q) Verification of income data
      (1) Confirmation with IRS
        The Secretary of Education, in cooperation with the Secretary
      of the Treasury, is authorized to confirm with the Internal
      Revenue Service the information specified in section 6103(l)(13)
      of title 26 reported by applicants (including parents) under this
      subchapter and part C of subchapter I of chapter 34 of title 42
      on their Federal income tax returns for the purpose of verifying
      the information reported by applicants on student financial aid
      applications.
      (2) Notification
        The Secretary shall establish procedures under which an
      applicant is notified that the Internal Revenue Service will
      disclose to the Secretary tax return information as authorized
      under section 6103(l)(13) of title 26.
    (r) Suspension of eligibility for drug-related offenses
      (1) In general
        A student who is convicted of any offense under any Federal or
      State law involving the possession or sale of a controlled
      substance for conduct that occurred during a period of enrollment
      for which the student was receiving any grant, loan, or work
      assistance under this subchapter and part C of subchapter I of
      chapter 34 of title 42 shall not be eligible to receive any
      grant, loan, or work assistance under this subchapter and part C
      of subchapter I of chapter 34 of title 42 from the date of that
      conviction for the period of time specified in the following
      table:


    If convicted of an offense involving:                                   
                                                                            
      The possession of a               Ineligibility period is:        
       controlled substance:                                            
          First offense                 1 year                          
          Second offense                2 years                         
          Third offense                 Indefinite.                     
      The sale of a controlled          Ineligibility period is:        
       substance:                                                       
          First offense                 2 years                         
          Second offense                Indefinite.                     
    --------------------------------------------------------------------

      (2) Rehabilitation
        A student whose eligibility has been suspended under paragraph
      (1) may resume eligibility before the end of the ineligibility
      period determined under such paragraph if - 
          (A) the student satisfactorily completes a drug
        rehabilitation program that - 
            (i) complies with such criteria as the Secretary shall
          prescribe in regulations for purposes of this paragraph; and
            (ii) includes two unannounced drug tests; or

          (B) the conviction is reversed, set aside, or otherwise
        rendered nugatory.
      (3) Definitions
        In this subsection, the term "controlled substance" has the
      meaning given the term in section 802(6) of title 21.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 484, as added Pub. L. 99-498, title
    IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1479; amended Pub. L. 99-
    603, title I, Sec. 121(a)(3), Nov. 6, 1986, 100 Stat. 3388; Pub.
    L. 100-50, Sec. 15(7)-(9), June 3, 1987, 101 Stat. 356, 357; Pub.
    L. 100-369, Secs. 1, 2, 6, July 18, 1988, 102 Stat. 835, 836; Pub.
    L. 100-525, Sec. 2(g), Oct. 24, 1988, 102 Stat. 2611; Pub. L. 101-
    508, title III, Sec. 3005(a), Nov. 5, 1990, 104 Stat. 1388-27;
    Pub. L. 102-26, Sec. 2(b), (c)(2), (d)(2)(A), Apr. 9, 1991, 105
    Stat. 123, 124; Pub. L. 102-73, title VIII, Sec. 801(a), July 25,
    1991, 105 Stat. 359; Pub. L. 102-325, title IV, Sec. 484(a),
    (b)(1), (c)-(h), July 23, 1992, 106 Stat. 615-619; Pub. L. 103-208,
    Sec. 2(h)(13)-(25), Dec. 20, 1993, 107 Stat. 2476, 2477; Pub. L.
    103-382, title III, Sec. 360A, Oct. 20, 1994, 108 Stat. 3969; Pub.
    L. 104-208, div. C, title V, Sec. 507(b), Sept. 30, 1996, 110 Stat.
    3009-673; Pub. L. 105-244, title IV, Sec. 483(a)-(f)(1), Oct. 7,
    1998, 112 Stat. 1735, 1736; Pub. L. 109-171, title VIII, Secs.
    8020(c), 8021, Feb. 8, 2006, 120 Stat. 178; Pub. L. 109-270, Sec.
    2(c)(2), Aug. 12, 2006, 120 Stat. 746.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1078-1 of this title, referred to in subsec. (b)(2), was
    repealed by Pub. L. 103-66, title IV, Sec. 4047(b)-(d), Aug. 10,
    1993, 107 Stat. 364, eff. July 1, 1994, except with respect to
    loans provided under that section as it existed prior to Aug. 10,
    1993. Subsequently, a new section 1078-1, relating to voluntary
    flexible agreements with guaranty agencies, was enacted by Pub. L.
    105-244, title IV, Sec. 418, Oct. 7, 1998, 112 Stat. 1691.
      Subsection (h) of this section, referred to in subsecs. (h)(2),
    (3) and (i), was redesignated subsec. (g) of this section by Pub.
    L. 103-208, Sec. 2(h)(25), Dec. 20, 1993, 107 Stat. 2477.
      Section 1113 of Public Law 97-252, referred to in subsec. (n),
    amended section 462 of Title 50, Appendix, War and National
    Defense, and enacted provisions set out as a note under section 462
    of Title 50, Appendix.
      This chapter, referred to in subsec. (o), was in the original
    "this Act", meaning Pub. L. 89-329, as amended, known as the Higher
    Education Act of 1965. For complete classification of this Act to
    the Code, see Short Title note set out under section 1001 of this
    title and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1091, Pub. L. 89-329, title IV, Sec. 484, as
    added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.
    1448; Pub. L. 99-272, title XVI, Sec. 16032(a), (b), Apr. 7, 1986,
    100 Stat. 354, related to student eligibility for assistance, prior
    to the general revision of this part by Pub. L. 99-498.
      Another prior section 1091, Pub. L. 89-329, title V, Sec. 501,
    Nov. 8, 1965, 79 Stat. 1254; Pub. L. 90-35, Sec. 2(c), June 29,
    1967, 81 Stat. 82; Pub. L. 92-318, title I, Sec. 141(b)(1), June
    23, 1972, 86 Stat. 285, set forth statement of purpose and
    authorization of appropriations for education professions
    development program, prior to repeal effective Sept. 30, 1976, by
    Pub. L. 94-482, title I, Sec. 151(a)(2), (b), Oct. 12, 1976, 90
    Stat. 2151.

                                AMENDMENTS                            
      2006 - Subsec. (a)(6). Pub. L. 109-171, Sec. 8021(a), added par.
    (6).
      Subsec. (l)(1)(A). Pub. L. 109-171, Sec. 8020(c)(1), struck out
    "for a program of study of 1 year or longer" after "recognized
    certificate" and "unless the total amount of telecommunications and
    correspondence courses at such institution equals or exceeds 50
    percent of the total amount of all courses at the institution"
    before period at end.
      Subsec. (l)(1)(B). Pub. L. 109-171, Sec. 8020(c)(2), amended
    heading and text of subpar. (B) generally. Prior to amendment, text
    read as follows: "An institution of higher education referred to in
    subparagraph (A) is an institution of higher education - 
        "(i) that is not an institute or school described in section
      2471(4)(C) of this title; and
        "(ii) for which at least 50 percent of the programs of study
      offered by the institution lead to the award of a recognized
      associate, baccalaureate, or graduate degree."
      Subsec. (l)(1)(B)(i). Pub. L. 109-270, which directed
    substitution of reference to section 2302(C) of this title for
    reference to section 2471(4)(C) of this title in cl. (i), could not
    be executed due to general amendment of subpar. (B) by Pub. L. 109-
    171. See above.
      Subsec. (q)(1). Pub. L. 109-171, Sec. 8021(b), amended heading
    and text of par. (1) generally. Prior to amendment, text read as
    follows: "The Secretary of Education, in cooperation with the
    Secretary of the Treasury, is authorized to confirm with the
    Internal Revenue Service the adjusted gross income, Federal income
    taxes paid, filing status, and exemptions reported by applicants
    (including parents) under this subchapter and part C of subchapter
    I of chapter 34 of title 42 on their Federal income tax returns for
    the purpose of verifying the information reported by applicants on
    student financial aid applications."
      Subsec. (r)(1). Pub. L. 109-171, Sec. 8021(c), amended heading
    and text of introductory provisions generally. Prior to amendment,
    text of introductory provisions read as follows: "A student who has
    been convicted of any offense under any Federal or State law
    involving the possession or sale of a controlled substance shall
    not be eligible to receive any grant, loan, or work assistance
    under this subchapter and part C of subchapter I of chapter 34 of
    title 42 during the period beginning on the date of such conviction
    and ending after the interval specified in the following table:".
      1998 - Subsec. (a)(4). Pub. L. 105-244, Sec. 483(a)(1),
    substituted "the Secretary, as part of the original financial aid
    application process, a certification," for "the institution of
    higher education which the student intends to attend, or is
    attending (or in the case of a loan or loan guarantee with the
    lender), a document" in introductory provisions.
      Subsec. (a)(5). Pub. L. 105-244, Sec. 483(a)(2), substituted "a
    citizen of any one of the Freely Associated States" for "or a
    permanent resident of the Trust Territory of the Pacific Islands,
    Guam, or the Northern Mariana Islands".
      Subsec. (d). Pub. L. 105-244, Sec. 483(b), struck out "either"
    after "shall meet" in introductory provisions and added par. (3).
      Subsec. (j). Pub. L. 105-244, Sec. 483(c), amended heading and
    text of subsec. (j) generally. Prior to amendment, text read as
    follows: "Notwithstanding any other provision of law, a student
    shall be eligible, if otherwise qualified, for assistance under
    subparts 1, 3, and 6, and division 1 of subpart 2, of part A of
    this subchapter, and part C of subchapter I of chapter 34 of title
    42, if the student is otherwise qualified and - 
        "(1) is a citizen of the Federated States of Micronesia, the
      Republic of the Marshall Islands, or the Republic of Palau, and
      attends an institution of higher education in a State or a public
      or nonprofit private institution of higher education in the
      Federated States of Micronesia, the Republic of the Marshall
      Islands, or the Republic of Palau; or
        "(2) meets the requirements of subsection (a)(5) of this
      section and attends a public or nonprofit private institution of
      higher education in the Federated States of Micronesia, the
      Republic of the Marshall Islands, or the Republic of Palau."
      Subsec. (l)(1). Pub. L. 105-244, Sec. 483(d), amended heading and
    text of par. (1) generally. Prior to amendment, text read as
    follows: "A student enrolled in a course of instruction at an
    eligible institution of higher education (other than an institution
    that meets the definition in section 2471(4)(C) of this title) that
    is offered in whole or in part through telecommunications and leads
    to a recognized associate, bachelor, or graduate degree conferred
    by such institution shall not be considered to be enrolled in
    correspondence courses unless the total amount of
    telecommunications and correspondence courses at such institution
    equals or exceeds 50 percent of such courses."
      Subsec. (q). Pub. L. 105-244, Sec. 483(e), added subsec. (q).
      Subsec. (r). Pub. L. 105-244, Sec. 483(f)(1), added subsec. (r).
      1996 - Subsec. (g)(4)(B)(i). Pub. L. 104-208 amended cl. (i)
    generally. Prior to amendment, cl. (i) read as follows: "the
    institution shall transmit to the Immigration and Naturalization
    Service photostatic or other similar copies of such documents for
    official verification,".
      1994 - Subsec. (j). Pub. L. 103-382 amended heading and text of
    subsec. (j) generally. Prior to amendment, text read as follows:
    "Notwithstanding any other provision of law, a student who meets
    the requirements of paragraph (a)(5) of this section or who is a
    resident of the freely associated states, and who attends a public
    or nonprofit institution of higher education located in any of the
    freely associated states rather than a State, shall be eligible, if
    otherwise qualified, for assistance under subpart 1, 2, or 4 of
    part A of this subchapter or part C of subchapter I of chapter 34
    of title 42."
      1993 - Subsec. (a)(4)(B). Pub. L. 103-208, Sec. 2(h)(13),
    inserted ", except that the provisions of this subparagraph shall
    not apply to a student from the Republic of the Marshall Islands,
    the Federated States of Micronesia, or the Republic of Palau" after
    "number".
      Subsec. (a)(5). Pub. L. 103-208, Sec. 2(h)(14), substituted "able
    to provide evidence from the Immigration and Naturalization Service
    that he or she is in the United States for other than a temporary
    purpose with the intention of becoming a citizen or permanent
    resident" for "in the United States for other than a temporary
    purpose and able to provide evidence from the Immigration and
    Naturalization Service of his or her intent to become a permanent
    resident".
      Subsec. (b)(2)(C). Pub. L. 103-208, Sec. 2(h)(15), added subpar.
    (C).
      Subsec. (b)(3). Pub. L. 103-208, Sec. 2(h)(16), substituted "part
    B or C of this subchapter" for "part B of this subchapter" in
    closing provisions.
      Subsec. (f). Pub. L. 103-208, Sec. 2(h)(17), (25), redesignated
    subsec. (g) as (f) and struck out heading and text of former
    subsec. (f). Text read as follows: "Notwithstanding any other
    provision of law, the Secretary may not require, or prescribe
    regulations that require, institutions to verify the accuracy of
    data used to determine the eligibility for any program under this
    subchapter and part C of subchapter I of chapter 34 of title 42 for
    more than 30 percent of the applicants in any award year. In
    carrying out the provisions of this subsection no eligible
    institution shall be required to verify more than 30 percent of
    such applicants in any award year. Nothing in this subsection shall
    preclude the Secretary from verifying all applications for aid
    through the use of any means available, including through the
    exchange of information with any other Federal agency."
      Subsec. (g). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec.
    (h) as (g). Former subsec. (g) redesignated (f).
      Pub. L. 103-208, Sec. 2(h)(18), which directed insertion of a
    comma after ", Part C" wherever appearing, was executed by
    inserting a comma after ", part C" wherever appearing, to reflect
    the probable intent of Congress.
      Subsec. (h). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec.
    (i) as (h). Former subsec. (h) redesignated (g).
      Pub. L. 103-208, Sec. 2(h)(19), substituted "constitute" for
    "constitutes" in introductory provisions of par. (4)(B).
      Subsec. (i). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec.
    (j) as (i). Former subsec. (i) redesignated (h).
      Pub. L. 103-208, Sec. 2(h)(22), struck out par. (4) which read as
    follows: "because of a fair hearing process described in subsection
    (h)(5)(B) of this section."
      Pub. L. 103-208, Sec. 2(h)(21), substituted "(h)(4)(B)(i)" for
    "(h)(4)(B)(ii)" and "student." for "student, or" in par. (3).
      Pub. L. 103-208, Sec. 2(h)(20), inserted "or" after
    "documentation," and substituted "(h)(4)(A)(i)" for "(h)(4)(A)(ii)"
    in par. (2).
      Subsecs. (j) to (m). Pub. L. 103-208, Sec. 2(h)(25), redesignated
    subsecs. (k) to (n) as (j) to (m), respectively. Former subsec. (j)
    redesignated (i).
      Subsec. (n). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec.
    (o) as (n). Former subsec. (n) redesignated (m).
      Pub. L. 103-208, Sec. 2(h)(23), substituted "parts B, C," for
    "part B, C,".
      Subsecs. (o), (p). Pub. L. 103-208, Sec. 2(h)(25), redesignated
    subsecs. (p) and (q) as (o) and (p), respectively. Former subsec.
    (o) redesignated (n).
      Subsec. (q). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec.
    (q) as (p).
      Pub. L. 103-208, Sec. 2(h)(24), substituted "documented evidence
    of a social security number that is determined by the institution
    to be correct" for "a correct social security number" in par. (2).
      1992 - Subsec. (a)(1). Pub. L. 102-325, Sec. 484(a)(1), inserted
    "(including a program of study abroad approved for credit by the
    eligible institution at which such student is enrolled)" after "or
    other program".
      Subsec. (a)(4). Pub. L. 102-325, Sec. 484(a)(2), added par. (4)
    and struck out former par. (4) which read as follows: "file with
    the institution of higher education which the student intends to
    attend, or is attending (or in the case of a loan or loan guarantee
    with the lender), a statement of educational purpose (which need
    not be notarized but which shall include such student's social
    security number or, if the student does not have a social security
    number, such student's student identification number) stating that
    the money attributable to such grant, loan, or loan guarantee will
    be used solely for expenses related to attendance or continued
    attendance at such institution; and".
      Subsec. (b)(4)(B). Pub. L. 102-325, Sec. 484(b)(1)(A),
    substituted "part B, C, or D of this subchapter or work-study
    assistance under part C of subchapter I of chapter 34 of title 42"
    for "part B of this subchapter" in concluding provisions.
      Subsec. (b)(5). Pub. L. 102-325, Sec. 484(b)(1)(B), added par.
    (5).
      Subsec. (d). Pub. L. 102-325, Sec. 484(c), amended subsec. (d)
    generally. Prior to amendment, subsec. (d) read as follows: "In
    order for a student who does not have a certificate of graduation
    from a school providing secondary education, or the recognized
    equivalent of such certificate, to be eligible for any assistance
    under subparts 1, 2, and 3 of part A and parts B, C, and D of this
    subchapter and part C of subchapter I of chapter 34 of title 42,
    the student shall pass an independently administered examination
    approved by the Secretary."
      Subsec. (f). Pub. L. 102-325, Sec. 484(d), inserted at end
    "Nothing in this subsection shall preclude the Secretary from
    verifying all applications for aid through the use of any means
    available, including through the exchange of information with any
    other Federal agency."
      Subsec. (g). Pub. L. 102-325, Sec. 484(e), designated existing
    provisions as par. (1), inserted ", part C" after "part B" in two
    places and "fraudulently" before "borrowed" in two places, and
    added par. (2).
      Subsec. (h). Pub. L. 102-325, Sec. 484(f), amended subsec. (h)
    generally. Prior to amendment, subsec. (h) contained pars. (1) to
    (6) relating to requirements for verification of student
    immigration status.
      Subsec. (k). Pub. L. 102-325, Sec. 484(h), made technical
    amendment to directory language of Pub. L. 102-73, Sec. 801(a). See
    1991 Amendment note below.
      Subsecs. (l) to (q). Pub. L. 102-325, Sec. 484(g), added subsecs.
    (l) to (q).
      1991 - Subsec. (a)(1). Pub. L. 102-26, Sec. 2(c)(2), inserted
    before semicolon at end ", and not be enrolled in an elementary or
    secondary school".
      Subsec. (d). Pub. L. 102-26, Sec. 2(d)(2)(A), repealed Pub. L.
    101-508, Sec. 3005(a). See 1990 Amendment note below.
      Pub. L. 102-26, Sec. 2(b), amended subsec. (d) generally. Prior
    to amendment, subsec. (d) read as follows: "A student who is
    admitted on the basis of the ability to benefit from the education
    or training in order to remain eligible for any grant, loan, or
    work assistance under this subchapter and part C of subchapter I of
    chapter 34 of title 42 shall - 
        "(1) receive the general education diploma prior to the
      student's certification or graduation from the program of study,
      or by the end of the first year of the course of study, whichever
      is earlier;
        "(2) be counseled prior to admission and be enrolled in and
      successfully complete the institutionally prescribed program of
      remedial or developmental education not to exceed one academic
      year or its equivalent; or
        "(3)(A) be administered a nationally recognized, standardized,
      or industry developed test, subject to criteria developed by the
      appropriate accrediting association, measuring the applicant's
      aptitude to complete successfully the program to which the
      applicant has applied; and
        "(B) with respect to applicants who are unable to satisfy the
      institutions' admissions testing requirements specified in
      subparagraph (A), be enrolled in and successfully complete an
      institutionally prescribed program or course of remedial or
      developmental education not to exceed one academic year or its
      equivalent.
    In order to be eligible for assistance a student cannot be enrolled
    in either an elementary or a secondary school."
      Subsec. (k). Pub. L. 102-73, as amended by Pub. L. 102-325, Sec.
    484(h), added subsec. (k).
      1990 - Subsec. (d). Pub. L. 101-508, which amended subsec. (d)
    generally to read: "In order for a student who is admitted on the
    basis of ability to benefit from the education or training offered
    to be eligible for any grant, loan, or work assistance under this
    subchapter and part C of subchapter I of chapter 34 of title 42,
    the student shall, prior to enrollment, pass an independently
    administered examination approved by the Secretary.", was repealed
    by Pub. L. 102-26, Sec. 2(d)(2)(A). See Construction of 1991
    Amendment note below.
      1988 - Subsec. (a)(1). Pub. L. 100-369, Sec. 6(1), substituted
    "subsections (b)(3) and (b)(4)" for "subsection (b)(2)".
      Subsec. (b)(1). Pub. L. 100-369, Sec. 1(1), substituted "section
    1078-2 or 1078-3" for "section 1078-1, 1078-2, or 1078-3".
      Subsec. (b)(1)(A). Pub. L. 100-369, Sec. 1(2), added subpar. (A)
    and struck out former subpar. (A) which read as follows: "have
    received a determination of eligibility or ineligibility for a
    grant under such subpart 1 for such period of enrollment; or".
      Subsec. (b)(2), (3). Pub. L. 100-369, Sec. 2, added par. (2) and
    redesignated former par. (2) as (3).
      Subsec. (b)(4). Pub. L. 100-369, Sec. 6(2), added par. (4).
      Subsecs. (c) to (e), (h) to (j). Pub. L. 100-525 redesignated
    subsecs. (c) to (e) enacted by Pub. L. 99-603 as (h) to (j),
    respectively, and inserted headings, substituted references to
    subsec. (h) for references to subsec. (c) wherever appearing, and
    in closing provisions of subsec. (j) substituted "date" for "date
    of".
      1987 - Subsec. (a)(1). Pub. L. 100-50, Sec. 15(7)(A), inserted ",
    except as provided in subsection (b)(2) of this section" before
    semicolon at end.
      Subsec. (b). Pub. L. 100-50, Sec. 15(7)(B)-(D), designated
    existing provision as par. (1), redesignated former pars. (1) and
    (2) as subpars. (A) and (B), respectively, and added par. (2).
      Subsec. (d). Pub. L. 100-50, Sec. 15(8), added pars. (2) and (3)
    and last sentence relating to ineligibility for assistance if a
    student is enrolled in either an elementary or a secondary school,
    and struck out former par. (2) which read as follows:
      "(A) be counseled prior to admissions or be administered a
    nationally recognized standardized or industry developed test,
    subject to criteria developed by the appropriate accrediting
    association, measuring the applicant's aptitude to complete
    successfully the program to which he has applied; and
      "(B) with respect to applicants who are unable to satisfy the
    institution's admissions testing requirements specified in
    subparagraph (A), be enrolled in an institutionally prescribed
    program or course of remedial or developmental education, not to
    exceed one academic year or its equivalent."
      Subsec. (f). Pub. L. 100-50, Sec. 15(9), inserted at end "In
    carrying out provisions of this subsection no eligible institution
    shall be required to verify more than 30 percent of such
    applications in any award year."
      1986 - Subsec. (c). Pub. L. 99-603 added subsec. (c) requiring
    immigration status verification.
      Subsec. (d). Pub. L. 99-603 added subsec. (d) limiting
    enforcement actions against institutions.
      Subsec. (e). Pub. L. 99-603 added subsec. (e) relating to
    validity of loan guarantees for loan payments made before
    completion of immigration status verification.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by section 483(a)-(e) of Pub. L. 105-244 effective Oct.
    1, 1998, except as otherwise provided in Pub. L. 105-244, see
    section 3 of Pub. L. 105-244, set out as a note under section 1001
    of this title.
      Pub. L. 105-244, title IV, Sec. 483(f)(2), Oct. 7, 1998, 112
    Stat. 1737, provided that: "The amendment made by paragraph (1)
    [amending this section], regarding suspension of eligibility for
    drug-related offenses, shall apply with respect to financial
    assistance to cover the costs of attendance for periods of
    enrollment beginning after the date of enactment of this Act [Oct.
    7, 1998]."

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by section 484(a), (b)(1)(B), and (c) to (h) of Pub. L.
    102-325 effective July 23, 1992, except that subsec. (m)(1) of this
    section, relating to proportion of courses permitted to be
    correspondence courses, as added by such amendment, effective on
    and after Oct. 1, 1992, see section 498 of Pub. L. 102-325, set out
    as a note under section 1088 of this title, and subsec. (n) of this
    section, relating to eligibility of students with first
    baccalaureate or professional degree for assistance, as added by
    such amendment, effective on and after Dec. 1, 1987, see section
    484(i) of Pub. L. 102-325, set out below.
      Section 484(b)(2) of Pub. L. 102-325 provided that: "The
    amendments made by paragraph (1)(A) of this subsection [amending
    this section] shall be effective on and after December 1, 1987."
      Section 484(i) of Pub. L. 102-325, as added by Pub. L. 103-208,
    Sec. 2(k)(8), Dec. 20, 1993, 107 Stat. 2486, provided that: "The
    amendments made by subsection (g) [section 484(g) of Pub. L. 102-
    325] with respect to the addition of subsection (n) [adding
    subsec. (n) of this section] shall be effective on and after
    December 1, 1987."

                     EFFECTIVE DATE OF 1991 AMENDMENT                 
      Amendment by Pub. L. 102-26 applicable to any grant, loan, or
    work assistance to cover the cost of instruction for periods of
    enrollment beginning on or after July 1, 1991, see section 2(d)(1)
    of Pub. L. 102-26, set out as a note under section 1085 of this
    title.

                     EFFECTIVE DATE OF 1988 AMENDMENTS                 
      Amendment by Pub. L. 100-525 effective as if included in
    enactment of Immigration Reform and Control Act of 1986, Pub. L. 99-
    603, see section 2(s) of Pub. L. 100-525, set out as a note under
    section 1101 of Title 8, Aliens and Nationality.
      Section 13 of Pub. L. 100-369 provided that:
      "(a) General Rule. - Except as otherwise provided, the amendments
    made by this Act to title IV of the Higher Education Act of 1965
    [amending this section and section 1078-1 of this title] shall be
    effective for any loan for which the eligibility of the borrower is
    certified by the institution 30 days after the date of enactment of
    this Act [July 18, 1988].
      "(b) Special Rules. - (1) The amendments made by section 5
    [amending this section and sections 1077 and 1078 of this title]
    shall be effective with respect to loans made on or after October
    1, 1988.
      "(2) The amendments made by sections 6, 7, 8, 9, 10, 11, and 12
    [amending this section, sections 1058, 1061, 1062, 1070a-1, 1070a-
    3, 1070a-4, 1070a-6, 1071, 1077, 1078, 1087-2, 1087dd, 1087ee,
    1087nn, 1087ss, 1087vv, 1132d-1, 1132g-1, and 1134m of this title,
    and section 1905 of Title 48, Territories and Insular Possessions]
    shall take effect on the date of enactment of this Act [July 18,
    1988]."

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-603 effective Oct. 1, 1988, with certain
    exceptions and qualifications, see section 121(c)(3), (4) of Pub.
    L. 99-603, set out as a note under section 1320b-7 of Title 42, The
    Public Health and Welfare.

                              EFFECTIVE DATE                          
      Section effective Oct. 17, 1986, except as otherwise provided,
    see section 2 of Pub. L. 99-498, set out as a note under section
    1001 of this title.
      Section 407(b) of Pub. L. 99-498 provided that:
      "(1) Sections 483(e) and 484(d) of the Act [20 U.S.C. 1090(e),
    1091(d)] as amended by this section shall apply to student
    assistance awarded for periods of enrollment beginning on or after
    July 1, 1987.
      "(2) The changes made in section 484(a)(1) of the Act [20 U.S.C.
    1091(a)(1)] shall apply to student assistance awarded for periods
    of enrollment beginning on or after July 1, 1987.
      "(3) Section 484(c) of the Act [20 U.S.C. 1091(c)] as amended by
    this section shall apply only to student assistance awarded for
    periods of enrollment beginning on or after July 1, 1987, to
    individuals who were not awarded such assistance for any preceding
    period of enrollment.
      "(4) Sections 484(f), 485(b), and 487(a)(10) of the Act [20
    U.S.C. 1091(f), 1092(b), 1094(a)(10)] as amended by this section
    shall apply only to periods of enrollment beginning on or after
    July 1, 1987."

                      CONSTRUCTION OF 1991 AMENDMENT                  
      For repeal of section 3005 of Pub. L. 101-508 and application of
    subsec. (d) of this section as if such section 3005 had not been
    enacted, see section 2(d)(2)(A) of Pub. L. 102-26, set out as a
    note under section 1088 of this title.


-TRANS-
    ABOLITION OF IMMIGRATION AND NATURALIZATION SERVICE AND TRANSFER OF
                                 FUNCTIONS
      For abolition of Immigration and Naturalization Service, transfer
    of functions, and treatment of related references, see note set out
    under section 1551 of Title 8, Aliens and Nationality.


-MISC2-
                           SATISFACTORY PROGRESS                       
      Section 1301 of Pub. L. 99-498, as amended by Pub. L. 100-50,
    Sec. 23(1), June 3, 1987, 101 Stat. 362, directed Secretary,
    through the Office of Educational Research and Improvement, to
    conduct survey over 5-year period ending Sept. 30, 1991, on impact
    on grades of students of amendments made by Pub. L. 99-498 to
    subsec. (c) of this section and to submit annual reports to
    Congress of survey, prior to repeal by Pub. L. 105-332, Sec. 6(a),
    Oct. 31, 1998, 112 Stat. 3127.

            DENIAL OF STUDENT ASSISTANCE TO CERTAIN NONCITIZENS        
      Section 1361 of Pub. L. 99-498 established in Department of
    Education the Alien Youth Education Opportunity Panel and provided
    for Panel's composition, duties, reports, administrative and
    clerical support, compensation and expenses, and access to
    information, prior to repeal by Pub. L. 105-332, Sec. 6(a), Oct.
    31, 1998, 112 Stat. 3127.

       FINANCIAL AID TO STUDENTS NOT DEEMED INCOME OR RESOURCES FOR
             PURPOSES OF CERTAIN SOCIAL SECURITY ACT PROGRAMS
      Pub. L. 90-575, title V, Sec. 507, Oct. 16, 1968, 82 Stat. 1063,
    as amended by Pub. L. 96-88, title III, Sec. 301(a)(1), Oct. 17,
    1979, 93 Stat. 677, provided that: "For the purpose of any program
    assisted under title I, IV, X, XIV, XVI, or XIX of the Social
    Security Act [subchapters I, IV, X, XIV, XVI, or XIX of chapter 7
    of Title 42, The Public Health and Welfare], no grant or loan to
    any undergraduate student for educational purposes made or insured
    under any program administered by the Secretary of Education shall
    be considered to be income or resources."

-FOOTNOTE-
    (!1) So in original.

    (!2) So in original. Probably should be followed by "or".

    (!3) See References in Text note below.

    (!4) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1091a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1091a. Statute of limitations, and State court judgments

-STATUTE-
    (a) In general
      (1) It is the purpose of this subsection to ensure that
    obligations to repay loans and grant overpayments are enforced
    without regard to any Federal or State statutory, regulatory, or
    administrative limitation on the period within which debts may be
    enforced.
      (2) Notwithstanding any other provision of statute, regulation,
    or administrative limitation, no limitation shall terminate the
    period within which suit may be filed, a judgment may be enforced,
    or an offset, garnishment, or other action initiated or taken by - 
        (A) an institution that receives funds under this subchapter
      and part C of subchapter I of chapter 34 of title 42 that is
      seeking to collect a refund due from a student on a grant made,
      or work assistance awarded, under this subchapter and part C of
      subchapter I of chapter 34 of title 42;
        (B) a guaranty agency that has an agreement with the Secretary
      under section 1078(c) of this title that is seeking the repayment
      of the amount due from a borrower on a loan made under part B of
      this subchapter after such guaranty agency reimburses the
      previous holder of the loan for its loss on account of the
      default of the borrower;
        (C) an institution that has an agreement with the Secretary
      pursuant to section 1087c or 1087cc(a) of this title that is
      seeking the repayment of the amount due from a borrower on a loan
      made under part C or D of this subchapter after the default of
      the borrower on such loan; or
        (D) the Secretary, the Attorney General, or the administrative
      head of another Federal agency, as the case may be, for payment
      of a refund due from a student on a grant made under this
      subchapter and part C of subchapter I of chapter 34 of title 42,
      or for the repayment of the amount due from a borrower on a loan
      made under this subchapter and part C of subchapter I of chapter
      34 of title 42 that has been assigned to the Secretary under this
      subchapter and part C of subchapter I of chapter 34 of title 42.
    (b) Assessment of costs and other charges
      Notwithstanding any provision of State law to the contrary - 
        (1) a borrower who has defaulted on a loan made under this
      subchapter and part C of subchapter I of chapter 34 of title 42
      shall be required to pay, in addition to other charges specified
      in this subchapter and part C of subchapter I of chapter 34 of
      title 42 reasonable collection costs; and
        (2) in collecting any obligation arising from a loan made under
      part B of this subchapter, a guaranty agency or the Secretary
      shall not be subject to a defense raised by any borrower based on
      a claim of infancy.
    (c) State court judgments
      A judgment of a State court for the recovery of money provided as
    grant, loan, or work assistance under this subchapter and part C of
    subchapter I of chapter 34 of title 42 that has been assigned or
    transferred to the Secretary under this subchapter and part C of
    subchapter I of chapter 34 of title 42 may be registered in any
    district court of the United States by filing a certified copy of
    the judgment and a copy of the assignment or transfer. A judgment
    so registered shall have the same force and effect, and may be
    enforced in the same manner, as a judgment of the district court of
    the district in which the judgment is registered.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 484A, as added Pub. L. 99-498,
    title IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1482; amended Pub.
    L. 102-26, Sec. 3(a), Apr. 9, 1991, 105 Stat. 124; Pub. L. 105-244,
    title IV, Sec. 484, Oct. 7, 1998, 112 Stat. 1737.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1091a, Pub. L. 89-329, title IV, Sec. 484A, as
    added Pub. L. 99-272, title XVI, Sec. 16033, Apr. 7, 1986, 100
    Stat. 355, related to statute of limitations, collection costs, and
    defense of infancy, prior to the general revision of this part by
    Pub. L. 99-498.
      Another prior section 1091a, Pub. L. 89-329, title V, Sec. 502,
    as added Pub. L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 82;
    amended Pub. L. 91-230, title IV, Sec. 401(h)(4), title VIII, Sec.
    802, Apr. 13, 1970, 84 Stat. 174, 190; Pub. L. 92-318, title I,
    Sec. 141(c)(1)(A), June 23, 1972, 86 Stat. 285, established the
    National Advisory Council on Education Professions Development and
    set forth functions, composition, etc., of the Council, prior to
    repeal by Pub. L. 94-482, title I, Sec. 151(a)(2), (b), Oct. 12,
    1976, 90 Stat. 2151, effective Sept. 30, 1976.

                                AMENDMENTS                            
      1998 - Pub. L. 105-244, Sec. 484(1), inserted ", and State court
    judgments" after "limitations" in section catchline.
      Subsec. (c). Pub. L. 105-244, Sec. 484(2), added subsec. (c).
      1991 - Subsec. (a). Pub. L. 102-26 amended subsec. (a) generally,
    substituting provisions eliminating statute of limitations for
    student loan collections for provisions establishing six year
    limitations period for collection of such loans.

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

                     EFFECTIVE DATE OF 1991 AMENDMENT                 
      Section 3(c) of Pub. L. 102-26, as amended by Pub. L. 102-325,
    title XV, Sec. 1551, July 23, 1992, 105 Stat. 838, provided that:
    "The amendments made by this section [amending this section] shall
    be effective as if enacted by the Consolidated Omnibus Budget
    Reconciliation Act of 1985 (Public Law 99-272), and shall apply to
    any actions pending on or after the date of enactment of the Higher
    Education Technical Amendments of 1991 [Apr. 9, 1991]."

-End-



-CITE-
    20 USC Sec. 1091b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1091b. Institutional refunds

-STATUTE-
    (a) Return of title IV funds
      (1) In general
        If a recipient of assistance under this subchapter and part C
      of subchapter I of chapter 34 of title 42 withdraws from an
      institution during a payment period or period of enrollment in
      which the recipient began attendance, the amount of grant or loan
      assistance (other than assistance received under part C of
      subchapter I of chapter 34 of title 42) to be returned to the
      title IV programs is calculated according to paragraph (3) and
      returned in accordance with subsection (b) of this section.
      (2) Leave of absence
        (A) Leave not treated as withdrawal
          In the case of a student who takes 1 or more leaves of
        absence from an institution for not more than a total of 180
        days in any 12-month period, the institution may consider the
        student as not having withdrawn from the institution during the
        leave of absence, and not calculate the amount of grant and
        loan assistance provided under this subchapter and part C of
        subchapter I of chapter 34 of title 42 that is to be returned
        in accordance with this section if - 
            (i) the institution has a formal policy regarding leaves of
          absence;
            (ii) the student followed the institution's policy in
          requesting a leave of absence; and
            (iii) the institution approved the student's request in
          accordance with the institution's policy.
        (B) Consequences of failure to return
          If a student does not return to the institution at the
        expiration of an approved leave of absence that meets the
        requirements of subparagraph (A), the institution shall
        calculate the amount of grant and loan assistance provided
        under this subchapter and part C of subchapter I of chapter 34
        of title 42 that is to be returned in accordance with this
        section based on the day the student withdrew (as determined
        under subsection (c) of this section).
      (3) Calculation of amount of title IV assistance earned
        (A) In general
          The amount of grant or loan assistance under this subchapter
        and part C of subchapter I of chapter 34 of title 42 that is
        earned by the recipient for purposes of this section is
        calculated by - 
            (i) determining the percentage of grant and loan assistance
          under this subchapter and part C of subchapter I of chapter
          34 of title 42 that has been earned by the student, as
          described in subparagraph (B); and
            (ii) applying such percentage to the total amount of such
          grant and loan assistance that was disbursed (and that could
          have been disbursed) to the student, or on the student's
          behalf, for the payment period or period of enrollment for
          which the assistance was awarded, as of the day the student
          withdrew.
        (B) Percentage earned
          For purposes of subparagraph (A)(i), the percentage of grant
        or loan assistance under this subchapter and part C of
        subchapter I of chapter 34 of title 42 that has been earned by
        the student is - 
            (i) equal to the percentage of the payment period or period
          of enrollment for which assistance was awarded that was
          completed (as determined in accordance with subsection (d) of
          this section) as of the day the student withdrew, provided
          that such date occurs on or before the completion of 60
          percent of the payment period or period of enrollment; or
            (ii) 100 percent, if the day the student withdrew occurs
          after the student has completed (as determined in accordance
          with subsection (d)) 60 percent of the payment period or
          period of enrollment.
        (C) Percentage and amount not earned
          For purposes of subsection (b) of this section, the amount of
        grant and loan assistance awarded under this subchapter and
        part C of subchapter I of chapter 34 of title 42 that has not
        been earned by the student shall be calculated by - 
            (i) determining the complement of the percentage of grant
          assistance under subparts 1 and 3 of part A, or loan
          assistance under parts B, C, and D, that has been earned by
          the student described in subparagraph (B); and
            (ii) applying the percentage determined under clause (i) to
          the total amount of such grant and loan assistance that was
          disbursed (and that could have been disbursed) to the
          student, or on the student's behalf, for the payment period
          or period of enrollment, as of the day the student withdrew.
      (4) Differences between amounts earned and amounts received
        (A) In general
          After determining the eligibility of the student for a late
        disbursement or post-withdrawal disbursement (as required in
        regulations prescribed by the Secretary), the institution of
        higher education shall contact the borrower and obtain
        confirmation that the loan funds are still required by the
        borrower. In making such contact, the institution shall explain
        to the borrower the borrower's obligation to repay the funds
        following any such disbursement. The institution shall document
        in the borrower's file the result of such contact and the final
        determination made concerning such disbursement.
        (B) Return
          If the student has received more grant or loan assistance
        than the amount earned as calculated under paragraph (3)(A),
        the unearned funds shall be returned by the institution or the
        student, or both, as may be required under paragraphs (1) and
        (2) of subsection (b) of this section, to the programs under
        this subchapter and part C of subchapter I of chapter 34 of
        title 42 in the order specified in subsection (b)(3) of this
        section.
    (b) Return of title IV program funds
      (1) Responsibility of the institution
        The institution shall return not later than 45 days from the
      determination of withdrawal, in the order specified in paragraph
      (3), the lesser of - 
          (A) the amount of grant and loan assistance awarded under
        this subchapter and part C of subchapter I of chapter 34 of
        title 42 that has not been earned by the student, as calculated
        under subsection (a)(3)(C) of this section; or
          (B) an amount equal to - 
            (i) the total institutional charges incurred by the student
          for the payment period or period of enrollment for which such
          assistance was awarded; multiplied by
            (ii) the percentage of grant and loan assistance awarded
          under this subchapter and part C of subchapter I of chapter
          34 of title 42 that has not been earned by the student, as
          described in subsection (a)(3)(C)(i) of this section.
      (2) Responsibility of the student
        (A) In general
          The student shall return assistance that has not been earned
        by the student as described in subsection (a)(3)(C)(ii) of this
        section in the order specified in paragraph (3) minus the
        amount the institution is required to return under paragraph
        (1).
        (B) Special rule
          The student (or parent in the case of funds due to a loan
        borrowed by a parent under part B or C of this subchapter)
        shall return or repay, as appropriate, the amount determined
        under subparagraph (A) to - 
            (i) a loan program under this subchapter and part C of
          subchapter I of chapter 34 of title 42 in accordance with the
          terms of the loan; and
            (ii) a grant program under this subchapter and part C of
          subchapter I of chapter 34 of title 42, as an overpayment of
          such grant and shall be subject to - 
              (I) repayment arrangements satisfactory to the
            institution; or
              (II) overpayment collection procedures prescribed by the
            Secretary.
        (C) Grant overpayment requirements
          (i) In general
            Notwithstanding subparagraphs (A) and (B), a student shall
          only be required to return grant assistance in the amount (if
          any) by which - 
              (I) the amount to be returned by the student (as
            determined under subparagraphs (A) and (B)), exceeds
              (II) 50 percent of the total grant assistance received by
            the student under this subchapter and part C of subchapter
            I of chapter 34 of title 42 for the payment period or
            period of enrollment.
          (ii) Minimum
            A student shall not be required to return amounts of $50 or
          less.
        (D) Waivers of Federal Pell Grant repayment by students
          affected by disasters
          The Secretary may waive the amounts that students are
        required to return under this section with respect to Federal
        Pell Grants if the withdrawals on which the returns are based
        are withdrawals by students - 
            (i) who were residing in, employed in, or attending an
          institution of higher education that is located in an area in
          which the President has declared that a major disaster
          exists, in accordance with section 5170 of title 42;
            (ii) whose attendance was interrupted because of the impact
          of the disaster on the student or the institution; and
            (iii) whose withdrawal ended within the academic year
          during which the designation occurred or during the next
          succeeding academic year.
        (E) Waivers of grant assistance repayment by students affected
          by disasters
          In addition to the waivers authorized by subparagraph (D),
        the Secretary may waive the amounts that students are required
        to return under this section with respect to any other grant
        assistance under this subchapter and part C of subchapter I of
        chapter 34 of title 42 if the withdrawals on which the returns
        are based are withdrawals by students - 
            (i) who were residing in, employed in, or attending an
          institution of higher education that is located in an area in
          which the President has declared that a major disaster
          exists, in accordance with section 5170 of title 42;
            (ii) whose attendance was interrupted because of the impact
          of the disaster on the student or the institution; and
            (iii) whose withdrawal ended within the academic year
          during which the designation occurred or during the next
          succeeding academic year.
      (3) Order of return of title IV funds
        (A) In general
          Excess funds returned by the institution or the student, as
        appropriate, in accordance with paragraph (1) or (2),
        respectively, shall be credited to outstanding balances on
        loans made under this subchapter and part C of subchapter I of
        chapter 34 of title 42 to the student or on behalf of the
        student for the payment period or period of enrollment for
        which a return of funds is required. Such excess funds shall be
        credited in the following order:
            (i) To outstanding balances on loans made under section
          1078-8 of this title for the payment period or period of
          enrollment for which a return of funds is required.
            (ii) To outstanding balances on loans made under section
          1078 of this title for the payment period or period of
          enrollment for which a return of funds is required.
            (iii) To outstanding balances on unsubsidized loans (other
          than parent loans) made under part C of this subchapter for
          the payment period or period of enrollment for which a return
          of funds is required.
            (iv) To outstanding balances on subsidized loans made under
          part C of this subchapter for the payment period or period of
          enrollment for which a return of funds is required.
            (v) To outstanding balances on loans made under part D of
          this subchapter for the payment period or period of
          enrollment for which a return of funds is required.
            (vi) To outstanding balances on loans made under section
          1078-2 of this title for the payment period or period of
          enrollment for which a return of funds is required.
            (vii) To outstanding balances on parent loans made under
          part C of this subchapter for the payment period or period of
          enrollment for which a return of funds is required.
        (B) Remaining excesses
          If excess funds remain after repaying all outstanding loan
        amounts, the remaining excess shall be credited in the
        following order:
            (i) To awards under subpart 1 of part A of this subchapter
          for the payment period or period of enrollment for which a
          return of funds is required.
            (ii) To awards under subpart 3 of part A of this subchapter
          for the payment period or period of enrollment for which a
          return of funds is required.
            (iii) To other assistance awarded under this subchapter and
          part C of subchapter I of chapter 34 of title 42 for which a
          return of funds is required.
    (c) Withdrawal date
      (1) In general
        In this section, the term "day the student withdrew" - 
          (A) is the date that the institution determines - 
            (i) the student began the withdrawal process prescribed by
          the institution;
            (ii) the student otherwise provided official notification
          to the institution of the intent to withdraw; or
            (iii) in the case of a student who does not begin the
          withdrawal process or otherwise notify the institution of the
          intent to withdraw, the date that is the mid-point of the
          payment period for which assistance under this subchapter and
          part C of subchapter I of chapter 34 of title 42 was
          disbursed or a later date documented by the institution; or

          (B) for institutions required to take attendance, is
        determined by the institution from such attendance records.
      (2) Special rule
        Notwithstanding paragraph (1), if the institution determines
      that a student did not begin the withdrawal process, or otherwise
      notify the institution of the intent to withdraw, due to illness,
      accident, grievous personal loss, or other such circumstances
      beyond the student's control, the institution may determine the
      appropriate withdrawal date.
    (d) Percentage of the payment period or period of enrollment
      completed
      For purposes of subsection (a)(3)(B) of this section, the
    percentage of the payment period or period of enrollment for which
    assistance was awarded that was completed, is determined - 
        (1) in the case of a program that is measured in credit hours,
      by dividing the total number of calendar days comprising the
      payment period or period of enrollment for which assistance is
      awarded into the number of calendar days completed in that period
      as of the day the student withdrew; and
        (2) in the case of a program that is measured in clock hours,
      by dividing the total number of clock hours comprising the
      payment period or period of enrollment for which assistance is
      awarded into the number of clock hours scheduled to be completed
      by the student in that period as of the day the student withdrew.
    (e) Effective date
      The provisions of this section shall take effect 2 years after
    October 7, 1998. An institution of higher education may choose to
    implement such provisions prior to that date.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 484B, as added Pub. L. 102-325,
    title IV, Sec. 485(a), July 23, 1992, 106 Stat. 619; amended Pub.
    L. 103-208, Sec. 2(h)(26), (27), Dec. 20, 1993, 107 Stat. 2477;
    Pub. L. 105-244, title IV, Sec. 485, Oct. 7, 1998, 112 Stat. 1737;
    Pub. L. 109-66, Sec. 2, Sept. 21, 2005, 119 Stat. 1999; Pub. L. 109-
    67, Sec. 2, Sept. 21, 2005, 119 Stat. 2001; Pub. L. 109-171, title
    VIII, Sec. 8022, Feb. 8, 2006, 120 Stat. 178.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title IV, referred to in subsecs. (a) and (b), means title IV of
    the Higher Education Act of 1965, Pub. L. 89-329, which is
    classified generally to this subchapter and part C (Sec. 2751 et
    seq.) of subchapter I of chapter 34 of Title 42, The Public Health
    and Welfare. For complete classification of title IV to the Code,
    see Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      Prior sections 1091b to 1091f were repealed, effective Sept. 30,
    1976, by Pub. L. 94-482, title I, Sec. 151(a)(2), (b), Oct. 12,
    1976, 90 Stat. 2151.
      Section 1091b, Pub. L. 89-329, title V, Sec. 503, as added Pub.
    L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 83; amended Pub. L. 92-
    318, title IV, Sec. 451(a), June 23, 1972, 86 Stat. 344,
    authorized the Commissioner to appraise and annually report on
    existing and future education personnel needs.
      Section 1091c, Pub. L. 89-329, title V, Sec. 504, as added Pub.
    L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 83; amended Pub. L. 90-
    575, title II, Sec. 231(a), Oct. 16, 1968, 82 Stat. 1039; Pub. L.
    92-318, title I, Sec. 141(a)(1)(B), (c)(1)(B), June 23, 1972, 86
    Stat. 284, 285, authorized the Commissioner to make grants or
    contracts with State or local educational agencies for attracting
    qualified persons to the field of education.
      Section 1091d, Pub. L. 89-329, title V, Sec. 505, as added Pub.
    L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 84, required the
    Commissioner to consult with the National Science Foundation and
    the National Foundation on the Arts and the Humanities in
    development and review of programs.
      Section 1091e, Pub. L. 89-329, title V, Sec. 506, as added Pub.
    L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 84, authorized
    transfer of funds for programs for education professions
    development.
      Section 1091f, Pub. L. 89-329, title V, Sec. 507, as added Pub.
    L. 90-35, Sec. 2(c), June 29, 1967, 81 Stat. 84, authorized
    employment of experts and consultants and set forth provisions for
    compensation and travel expenses.

                                AMENDMENTS                            
      2006 - Subsec. (a)(2)(A). Pub. L. 109-171, Sec. 8022(1),
    substituted "1 or more leaves of" for "a leave of" in introductory
    provisions.
      Subsec. (a)(3)(B)(ii). Pub. L. 109-171, Sec. 8022(2), inserted
    "(as determined in accordance with subsection (d))" after "student
    has completed".
      Subsec. (a)(3)(C)(i). Pub. L. 109-171, Sec. 8022(3), substituted
    "grant assistance under subparts 1 and 3 of part A, or loan
    assistance under parts B, C, and D," for "grant or loan assistance
    under this subchapter and part C of subchapter I of chapter 34 of
    title 42".
      Subsec. (a)(4)(A). Pub. L. 109-171, Sec. 8022(4), amended heading
    and text of subpar. (A) generally. Prior to amendment, text read as
    follows: "If the student has received less grant or loan assistance
    than the amount earned as calculated under subparagraph (A) of
    paragraph (3), the institution of higher education shall comply
    with the procedures for late disbursement specified by the
    Secretary in regulations."
      Subsec. (b)(1). Pub. L. 109-171, Sec. 8022(5), inserted "not
    later than 45 days from the determination of withdrawal" after
    "return" in introductory provisions.
      Subsec. (b)(2)(C). Pub. L. 109-171, Sec. 8022(6), amended heading
    and text of subpar. (C) generally. Prior to amendment, text read as
    follows: "Notwithstanding subparagraphs (A) and (B), a student
    shall not be required to return 50 percent of the grant assistance
    received by the student under this subchapter and part C of
    subchapter I of chapter 34 of title 42, for a payment period or
    period of enrollment, that is the responsibility of the student to
    repay under this section."
      Subsec. (d). Pub. L. 109-171, Sec. 8022(7), (8), in introductory
    provisions, substituted "(a)(3)(B)" for "(a)(3)(B)(i)" and, in par.
    (2), substituted "clock hours scheduled to be completed by the
    student in that period as of the day the student withdrew." for
    "clock hours - 
        "(A) completed by the student in that period as of the day the
      student withdrew; or
        "(B) scheduled to be completed as of the day the student
      withdrew, if the clock hours completed in the period are not less
      than a percentage, to be determined by the Secretary in
      regulations, of the hours that were scheduled to be completed by
      the student in the period."
      2005 - Subsec. (b)(2)(D). Pub. L. 109-66 added subpar. (D).
      Subsec. (b)(2)(E). Pub. L. 109-67 added subpar. (E).
      1998 - Pub. L. 105-244 amended section catchline and text
    generally. Prior to amendment, section consisted of subsecs. (a) to
    (c) requiring each institution of higher education participating in
    a program under this subchapter and part C of subchapter I of
    chapter 34 of title 42 to have in effect a fair and equitable
    refund policy for refunding unearned tuition, fees, room and board,
    and other charges to students or parents who received grant or loan
    assistance under this subchapter or part C of subchapter I of
    chapter 34 of title 42.
      1993 - Subsec. (a). Pub. L. 103-208, Sec. 2(h)(26), substituted
    "grant or loan assistance" for "grant, loan, or work assistance" in
    introductory provisions.
      Subsec. (b)(3). Pub. L. 103-208, Sec. 2(h)(27), substituted
    "subsection (c) of this section" for "subsection (d) of this
    section".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 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.

-End-



-CITE-
    20 USC Sec. 1092                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1092. Institutional and financial assistance information for
      students

-STATUTE-
    (a) Information dissemination activities
      (1) Each eligible institution participating in any program under
    this subchapter and part C of subchapter I of chapter 34 of title
    42 shall carry out information dissemination activities for
    prospective and enrolled students (including those attending or
    planning to attend less than full time) regarding the institution
    and all financial assistance under this subchapter and part C of
    subchapter I of chapter 34 of title 42. The information required by
    this section shall be produced and be made readily available upon
    request, through appropriate publications, mailings, and electronic
    media, to an enrolled student and to any prospective student. Each
    eligible institution shall, on an annual basis, provide to all
    enrolled students a list of the information that is required to be
    provided by institutions to students by this section and section
    1232g of this title, together with a statement of the procedures
    required to obtain such information. The information required by
    this section shall accurately describe - 
        (A) the student financial assistance programs available to
      students who enroll at such institution;
        (B) the methods by which such assistance is distributed among
      student recipients who enroll at such institution;
        (C) any means, including forms, by which application for
      student financial assistance is made and requirements for
      accurately preparing such application;
        (D) the rights and responsibilities of students receiving
      financial assistance under this subchapter and part C of
      subchapter I of chapter 34 of title 42;
        (E) the cost of attending the institution, including (i)
      tuition and fees, (ii) books and supplies, (iii) estimates of
      typical student room and board costs or typical commuting costs,
      and (iv) any additional cost of the program in which the student
      is enrolled or expresses a specific interest;
        (F) a statement of - 
          (i) the requirements of any refund policy with which the
        institution is required to comply;
          (ii) the requirements under section 1091b of this title for
        the return of grant or loan assistance provided under this
        subchapter and part C of subchapter I of chapter 34 of title
        42; and
          (iii) the requirements for officially withdrawing from the
        institution;

        (G) the academic program of the institution, including (i) the
      current degree programs and other educational and training
      programs, (ii) the instructional, laboratory, and other physical
      plant facilities which relate to the academic program, and (iii)
      the faculty and other instructional personnel;
        (H) each person designated under subsection (c) of this
      section, and the methods by which and locations in which any
      person so designated may be contacted by students and prospective
      students who are seeking information required by this subsection;
        (I) special facilities and services available to handicapped
      students;
        (J) the names of associations, agencies, or governmental bodies
      which accredit, approve, or license the institution and its
      programs, and the procedures under which any current or
      prospective student may obtain or review upon request a copy of
      the documents describing the institution's accreditation,
      approval, or licensing;
        (K) the standards which the student must maintain in order to
      be considered to be making satisfactory progress, pursuant to
      section 1091(a)(2) of this title;
        (L) the completion or graduation rate of certificate- or degree-
      seeking, full-time, undergraduate students entering such
      institutions;
        (M) the terms and conditions under which students receiving
      guaranteed student loans under part B of this subchapter or
      direct student loans under part D of this subchapter, or both,
      may - 
          (i) obtain deferral of the repayment of the principal and
        interest for service under the Peace Corps Act (as established
        by the Peace Corps Act (22 U.S.C. 2501 et seq.)) or under the
        Domestic Volunteer Service Act of 1973 [42 U.S.C. 4950 et
        seq.], or for comparable full-time service as a volunteer for a
        tax-exempt organization of demonstrated effectiveness in the
        field of community service, and
          (ii) obtain partial cancellation of the student loan for
        service under the Peace Corps Act (as established by the Peace
        Corps Act (22 U.S.C. 2501 et seq.)) under (!1) the Domestic
        Volunteer Service Act of 1973 [42 U.S.C. 4950 et seq.] or, for
        comparable full-time service as a volunteer for a tax-exempt
        organization of demonstrated effectiveness in the field of
        community service;


        (N) that enrollment in a program of study abroad approved for
      credit by the home institution may be considered enrollment in
      the home institution for purposes of applying for Federal student
      financial assistance; and
        (O) the campus crime report prepared by the institution
      pursuant to subsection (f) of this section, including all
      required reporting categories.

      (2) For the purpose of this section, the term "prospective
    student" means any individual who has contacted an eligible
    institution requesting information concerning admission to that
    institution.
      (3) In calculating the completion or graduation rate under
    subparagraph (L) of paragraph (1) of this subsection or under
    subsection (e) of this section, a student shall be counted as a
    completion or graduation if, within 150 percent of the normal time
    for completion of or graduation from the program, the student has
    completed or graduated from the program, or enrolled in any program
    of an eligible institution for which the prior program provides
    substantial preparation. The information required to be disclosed
    under such subparagraph - 
        (A) shall be made available by July 1 each year to enrolled
      students and prospective students prior to the students enrolling
      or entering into any financial obligation; and
        (B) shall cover the one-year period ending on August 31 of the
      preceding year.

      (4) For purposes of this section, institutions may exclude from
    the information disclosed in accordance with subparagraph (L) of
    paragraph (1) the completion or graduation rates of students who
    leave school to serve in the armed services, on official church
    missions, or with a recognized foreign aid service of the Federal
    Government.
      (5) The Secretary shall permit any institution of higher
    education that is a member of an athletic association or athletic
    conference that has voluntarily published completion or graduation
    rate data or has agreed to publish data that, in the opinion of the
    Secretary, is substantially comparable to the information required
    under this subsection, to use such data to satisfy the requirements
    of this subsection.
      (6) Each institution may provide supplemental information to
    enrolled and prospective students showing the completion or
    graduation rate for students described in paragraph (4) or for
    students transferring into the institution or information showing
    the rate at which students transfer out of the institution.
    (b) Exit counseling for borrowers
      (1)(A) Each eligible institution shall, through financial aid
    officers or otherwise, make available counseling to borrowers of
    loans which are made, insured, or guaranteed under part B (other
    than loans made pursuant to section 1078-2 of this title) of this
    subchapter or made under part C or D of this subchapter prior to
    the completion of the course of study for which the borrower
    enrolled at the institution or at the time of departure from such
    institution. The counseling required by this subsection shall
    include - 
        (i) the average anticipated monthly repayments, a review of the
      repayment options available, and such debt and management
      strategies as the institution determines are designed to
      facilitate the repayment of such indebtedness; and
        (ii) the terms and conditions under which the student may
      obtain partial cancellation or defer repayment of the principal
      and interest pursuant to sections 1078(b), 1087dd(c)(2), and
      1087ee of this title.

      (B) In the case of borrower who leaves an institution without the
    prior knowledge of the institution, the institution shall attempt
    to provide the information described in subparagraph (A) to the
    student in writing.
      (2)(A) Each eligible institution shall require that the borrower
    of a loan made under part B, C, or D of this subchapter submit to
    the institution, during the exit interview required by this
    subsection - 
        (i) the borrower's expected permanent address after leaving the
      institution (regardless of the reason for leaving);
        (ii) the name and address of the borrower's expected employer
      after leaving the institution;
        (iii) the address of the borrower's next of kin; and
        (iv) any corrections in the institution's records relating the
      borrower's name, address, social security number, references, and
      driver's license number.

      (B) The institution shall, within 60 days after the interview,
    forward any corrected or completed information received from the
    borrower to the guaranty agency indicated on the borrower's student
    aid records.
      (C) Nothing in this subsection shall be construed to prohibit an
    institution of higher education from utilizing electronic means to
    provide personalized exit counseling.
    (c) Financial assistance information personnel
      Each eligible institution shall designate an employee or group of
    employees who shall be available on a full-time basis to assist
    students or potential students in obtaining information as
    specified in subsection (a) of this section. The Secretary may, by
    regulation, waive the requirement that an employee or employees be
    available on a full-time basis for carrying out responsibilities
    required under this section whenever an institution in which the
    total enrollment, or the portion of the enrollment participating in
    programs under this subchapter and part C of subchapter I of
    chapter 34 of title 42 at that institution, is too small to
    necessitate such employee or employees being available on a full-
    time basis. No such waiver may include permission to exempt any
    such institution from designating a specific individual or a group
    of individuals to carry out the provisions of this section.
    (d) Departmental publication of descriptions of assistance programs
      (1) The Secretary shall make available to eligible institutions,
    eligible lenders, and secondary schools descriptions of Federal
    student assistance programs including the rights and
    responsibilities of student and institutional participants, in
    order to (A) assist students in gaining information through
    institutional sources, and (B) assist institutions in carrying out
    the provisions of this section, so that individual and
    institutional participants will be fully aware of their rights and
    responsibilities under such programs. In particular, such
    information shall include information to enable students and
    prospective students to assess the debt burden and monthly and
    total repayment obligations that will be incurred as a result of
    receiving loans of varying amounts under this subchapter and part C
    of subchapter I of chapter 34 of title 42. In addition, such
    information shall include information to enable borrowers to assess
    the practical consequences of loan consolidation, including
    differences in deferment eligibility, interest rates, monthly
    payments, and finance charges, and samples of loan consolidation
    profiles to illustrate such consequences. The Secretary shall
    provide information concerning the specific terms and conditions
    under which students may obtain partial or total cancellation or
    defer repayment of loans for service, shall indicate (in terms of
    the Federal minimum wage) the maximum level of compensation and
    allowances that a student borrower may receive from a tax-exempt
    organization to qualify for a deferment, and shall explicitly state
    that students may qualify for such partial cancellations or
    deferments when they serve as a paid employee of a tax-exempt
    organization. Such information shall be provided by eligible
    institutions and eligible lenders at any time that information
    regarding loan availability is provided to any student.
      (2) The Secretary, to the extent the information is available,
    shall compile information describing State and other prepaid
    tuition programs and savings programs and disseminate such
    information to States, eligible institutions, students, and parents
    in departmental publications.
      (3) The Secretary, to the extent practicable, shall update the
    Department's Internet site to include direct links to databases
    that contain information on public and private financial assistance
    programs. The Secretary shall only provide direct links to
    databases that can be accessed without charge and shall make
    reasonable efforts to verify that the databases included in a
    direct link are not providing fraudulent information. The Secretary
    shall prominently display adjacent to any such direct link a
    disclaimer indicating that a direct link to a database does not
    constitute an endorsement or recommendation of the database, the
    provider of the database, or any services or products of such
    provider. The Secretary shall provide additional direct links to
    information resources from which students may obtain information
    about fraudulent and deceptive practices in the provision of
    services related to student financial aid.
    (e) Disclosures required with respect to athletically related
      student aid
      (1) Each institution of higher education which participates in
    any program under this subchapter and part C of subchapter I of
    chapter 34 of title 42 and is attended by students receiving
    athletically related student aid shall annually submit a report to
    the Secretary which contains - 
        (A) the number of students at the institution of higher
      education who received athletically related student aid broken
      down by race and sex in the following sports: basketball,
      football, baseball, cross country/track, and all other sports
      combined;
        (B) the number of students at the institution of higher
      education, broken down by race and sex;
        (C) the completion or graduation rate for students at the
      institution of higher education who received athletically related
      student aid broken down by race and sex in the following sports:
      basketball, football, baseball, cross country/track and all other
      sports combined;
        (D) the completion or graduation rate for students at the
      institution of higher education, broken down by race and sex;
        (E) the average completion or graduation rate for the 4 most
      recent completing or graduating classes of students at the
      institution of higher education who received athletically related
      student aid broken down by race and sex in the following
      categories: basketball, football, baseball, cross country/track,
      and all other sports combined; and
        (F) the average completion or graduation rate for the 4 most
      recent completing or graduating classes of students at the
      institution of higher education broken down by race and sex.

      (2) When an institution described in paragraph (1) of this
    subsection offers a potential student athlete athletically related
    student aid, such institution shall provide to the student and the
    student's parents, guidance counselor, and coach the information
    contained in the report submitted by such institution pursuant to
    paragraph (1). If the institution is a member of a national
    collegiate athletic association that compiles graduation rate data
    on behalf of the association's member institutions that the
    Secretary determines is substantially comparable to the information
    described in paragraph (1), the distribution of the compilation of
    such data to all secondary schools in the United States shall
    fulfill the responsibility of the institution to provide
    information to a prospective student athlete's guidance counselor
    and coach.
      (3) For purposes of this subsection, institutions may exclude
    from the reporting requirements under paragraphs (1) and (2) the
    completion or graduation rates of students and student athletes who
    leave school to serve in the armed services, on official church
    missions, or with a recognized foreign aid service of the Federal
    Government.
      (4) Each institution of higher education described in paragraph
    (1) may provide supplemental information to students and the
    Secretary showing the completion or graduation rate when such
    completion or graduation rate includes students transferring into
    and out of such institution.
      (5) The Secretary, using the reports submitted under this
    subsection, shall compile and publish a report containing the
    information required under paragraph (1) broken down by - 
        (A) individual institutions of higher education; and
        (B) athletic conferences recognized by the National Collegiate
      Athletic Association and the National Association of
      Intercollegiate Athletics.

      (6) The Secretary shall waive the requirements of this subsection
    for any institution of higher education that is a member of an
    athletic association or athletic conference that has voluntarily
    published completion or graduation rate data or has agreed to
    publish data that, in the opinion of the Secretary, is
    substantially comparable to the information required under this
    subsection.
      (7) The Secretary, in conjunction with the National Junior
    College Athletic Association, shall develop and obtain data on
    completion or graduation rates from two-year colleges that award
    athletically related student aid. Such data shall, to the extent
    practicable, be consistent with the reporting requirements set
    forth in this section.
      (8) For purposes of this subsection, the term "athletically
    related student aid" means any scholarship, grant, or other form of
    financial assistance the terms of which require the recipient to
    participate in a program of intercollegiate athletics at an
    institution of higher education in order to be eligible to receive
    such assistance.
      (9) The reports required by this subsection shall be due each
    July 1 and shall cover the 1-year period ending August 31 of the
    preceding year.
    (f) Disclosure of campus security policy and campus crime
      statistics
      (1) Each eligible institution participating in any program under
    this subchapter and part C of subchapter I of chapter 34 of title
    42 shall on August 1, 1991, begin to collect the following
    information with respect to campus crime statistics and campus
    security policies of that institution, and beginning September 1,
    1992, and each year thereafter, prepare, publish, and distribute,
    through appropriate publications or mailings, to all current
    students and employees, and to any applicant for enrollment or
    employment upon request, an annual security report containing at
    least the following information with respect to the campus security
    policies and campus crime statistics of that institution:
        (A) A statement of current campus policies regarding procedures
      and facilities for students and others to report criminal actions
      or other emergencies occurring on campus and policies concerning
      the institution's response to such reports.
        (B) A statement of current policies concerning security and
      access to campus facilities, including campus residences, and
      security considerations used in the maintenance of campus
      facilities.
        (C) A statement of current policies concerning campus law
      enforcement, including - 
          (i) the enforcement authority of security personnel,
        including their working relationship with State and local
        police agencies; and
          (ii) policies which encourage accurate and prompt reporting
        of all crimes to the campus police and the appropriate police
        agencies.

        (D) A description of the type and frequency of programs
      designed to inform students and employees about campus security
      procedures and practices and to encourage students and employees
      to be responsible for their own security and the security of
      others.
        (E) A description of programs designed to inform students and
      employees about the prevention of crimes.
        (F) Statistics concerning the occurrence on campus, in or on
      noncampus buildings or property, and on public property during
      the most recent calendar year, and during the 2 preceding
      calendar years for which data are available - 
          (i) of the following criminal offenses reported to campus
        security authorities or local police agencies:
            (I) murder;
            (II) sex offenses, forcible or nonforcible;
            (III) robbery;
            (IV) aggravated assault;
            (V) burglary;
            (VI) motor vehicle theft;
            (VII) manslaughter;
            (VIII) arson; and
            (IX) arrests or persons referred for campus disciplinary
          action for liquor law violations, drug-related violations,
          and weapons possession; and

          (ii) of the crimes described in subclauses (I) through (VIII)
        of clause (i), and other crimes involving bodily injury to any
        person in which the victim is intentionally selected because of
        the actual or perceived race, gender, religion, sexual
        orientation, ethnicity, or disability of the victim that are
        reported to campus security authorities or local police
        agencies, which data shall be collected and reported according
        to category of prejudice.

        (G) A statement of policy concerning the monitoring and
      recording through local police agencies of criminal activity at
      off-campus student organizations which are recognized by the
      institution and that are engaged in by students attending the
      institution, including those student organizations with off-
      campus housing facilities.
        (H) A statement of policy regarding the possession, use, and
      sale of alcoholic beverages and enforcement of State underage
      drinking laws and a statement of policy regarding the possession,
      use, and sale of illegal drugs and enforcement of Federal and
      State drug laws and a description of any drug or alcohol abuse
      education programs as required under section 1011i of this title.
        (I) A statement advising the campus community where law
      enforcement agency information provided by a State under section
      14071(j) of title 42, concerning registered sex offenders may be
      obtained, such as the law enforcement office of the institution,
      a local law enforcement agency with jurisdiction for the campus,
      or a computer network address.

      (2) Nothing in this subsection shall be construed to authorize
    the Secretary to require particular policies, procedures, or
    practices by institutions of higher education with respect to
    campus crimes or campus security.
      (3) Each institution participating in any program under this
    subchapter and part C of subchapter I of chapter 34 of title 42
    shall make timely reports to the campus community on crimes
    considered to be a threat to other students and employees described
    in paragraph (1)(F) that are reported to campus security or local
    law police agencies. Such reports shall be provided to students and
    employees in a manner that is timely and that will aid in the
    prevention of similar occurrences.
      (4)(A) Each institution participating in any program under this
    subchapter and part C of subchapter I of chapter 34 of title 42
    that maintains a police or security department of any kind shall
    make, keep, and maintain a daily log, written in a form that can be
    easily understood, recording all crimes reported to such police or
    security department, including - 
        (i) the nature, date, time, and general location of each crime;
      and
        (ii) the disposition of the complaint, if known.

      (B)(i) All entries that are required pursuant to this paragraph
    shall, except where disclosure of such information is prohibited by
    law or such disclosure would jeopardize the confidentiality of the
    victim, be open to public inspection within two business days of
    the initial report being made to the department or a campus
    security authority.
      (ii) If new information about an entry into a log becomes
    available to a police or security department, then the new
    information shall be recorded in the log not later than two
    business days after the information becomes available to the police
    or security department.
      (iii) If there is clear and convincing evidence that the release
    of such information would jeopardize an ongoing criminal
    investigation or the safety of an individual, cause a suspect to
    flee or evade detection, or result in the destruction of evidence,
    such information may be withheld until that damage is no longer
    likely to occur from the release of such information.
      (5) On an annual basis, each institution participating in any
    program under this subchapter and part C of subchapter I of chapter
    34 of title 42 shall submit to the Secretary a copy of the
    statistics required to be made available under paragraph (1)(F).
    The Secretary shall - 
        (A) review such statistics and report to the Committee on
      Education and the Workforce of the House of Representatives and
      the Committee on Labor and Human Resources of the Senate on
      campus crime statistics by September 1, 2000;
        (B) make copies of the statistics submitted to the Secretary
      available to the public; and
        (C) in coordination with representatives of institutions of
      higher education, identify exemplary campus security policies,
      procedures, and practices and disseminate information concerning
      those policies, procedures, and practices that have proven
      effective in the reduction of campus crime.

      (6)(A) In this subsection:
        (i) The term "campus" means - 
          (I) any building or property owned or controlled by an
        institution of higher education within the same reasonably
        contiguous geographic area of the institution and used by the
        institution in direct support of, or in a manner related to,
        the institution's educational purposes, including residence
        halls; and
          (II) property within the same reasonably contiguous
        geographic area of the institution that is owned by the
        institution but controlled by another person, is used by
        students, and supports institutional purposes (such as a food
        or other retail vendor).

        (ii) The term "noncampus building or property" means - 
          (I) any building or property owned or controlled by a student
        organization recognized by the institution; and
          (II) any building or property (other than a branch campus)
        owned or controlled by an institution of higher education that
        is used in direct support of, or in relation to, the
        institution's educational purposes, is used by students, and is
        not within the same reasonably contiguous geographic area of
        the institution.

        (iii) The term "public property" means all public property that
      is within the same reasonably contiguous geographic area of the
      institution, such as a sidewalk, a street, other thoroughfare, or
      parking facility, and is adjacent to a facility owned or
      controlled by the institution if the facility is used by the
      institution in direct support of, or in a manner related to the
      institution's educational purposes.

      (B) In cases where branch campuses of an institution of higher
    education, schools within an institution of higher education, or
    administrative divisions within an institution are not within a
    reasonably contiguous geographic area, such entities shall be
    considered separate campuses for purposes of the reporting
    requirements of this section.
      (7) The statistics described in paragraph (1)(F) shall be
    compiled in accordance with the definitions used in the uniform
    crime reporting system of the Department of Justice, Federal Bureau
    of Investigation, and the modifications in such definitions as
    implemented pursuant to the Hate Crime Statistics Act. Such
    statistics shall not identify victims of crimes or persons accused
    of crimes.
      (8)(A) Each institution of higher education participating in any
    program under this subchapter and part C of subchapter I of chapter
    34 of title 42 shall develop and distribute as part of the report
    described in paragraph (1) a statement of policy regarding - 
        (i) such institution's campus sexual assault programs, which
      shall be aimed at prevention of sex offenses; and
        (ii) the procedures followed once a sex offense has occurred.

      (B) The policy described in subparagraph (A) shall address the
    following areas:
        (i) Education programs to promote the awareness of rape,
      acquaintance rape, and other sex offenses.
        (ii) Possible sanctions to be imposed following the final
      determination of an on-campus disciplinary procedure regarding
      rape, acquaintance rape, or other sex offenses, forcible or
      nonforcible.
        (iii) Procedures students should follow if a sex offense
      occurs, including who should be contacted, the importance of
      preserving evidence as may be necessary to the proof of criminal
      sexual assault, and to whom the alleged offense should be
      reported.
        (iv) Procedures for on-campus disciplinary action in cases of
      alleged sexual assault, which shall include a clear statement
      that - 
          (I) the accuser and the accused are entitled to the same
        opportunities to have others present during a campus
        disciplinary proceeding; and
          (II) both the accuser and the accused shall be informed of
        the outcome of any campus disciplinary proceeding brought
        alleging a sexual assault.

        (v) Informing students of their options to notify proper law
      enforcement authorities, including on-campus and local police,
      and the option to be assisted by campus authorities in notifying
      such authorities, if the student so chooses.
        (vi) Notification of students of existing counseling, mental
      health or student services for victims of sexual assault, both on
      campus and in the community.
        (vii) Notification of students of options for, and available
      assistance in, changing academic and living situations after an
      alleged sexual assault incident, if so requested by the victim
      and if such changes are reasonably available.

      (C) Nothing in this paragraph shall be construed to confer a
    private right of action upon any person to enforce the provisions
    of this paragraph.
      (9) The Secretary shall provide technical assistance in complying
    with the provisions of this section to an institution of higher
    education who requests such assistance.
      (10) Nothing in this section shall be construed to require the
    reporting or disclosure of privileged information.
      (11) The Secretary shall report to the appropriate committees of
    Congress each institution of higher education that the Secretary
    determines is not in compliance with the reporting requirements of
    this subsection.
      (12) For purposes of reporting the statistics with respect to
    crimes described in paragraph (1)(F), an institution of higher
    education shall distinguish, by means of separate categories, any
    criminal offenses that occur - 
        (A) on campus;
        (B) in or on a noncampus building or property;
        (C) on public property; and
        (D) in dormitories or other residential facilities for students
      on campus.

      (13) Upon a determination pursuant to section 1094(c)(3)(B) of
    this title that an institution of higher education has
    substantially misrepresented the number, location, or nature of the
    crimes required to be reported under this subsection, the Secretary
    shall impose a civil penalty upon the institution in the same
    amount and pursuant to the same procedures as a civil penalty is
    imposed under section 1094(c)(3)(B) of this title.
      (14)(A) Nothing in this subsection may be construed to - 
        (i) create a cause of action against any institution of higher
      education or any employee of such an institution for any civil
      liability; or
        (ii) establish any standard of care.

      (B) Notwithstanding any other provision of law, evidence
    regarding compliance or noncompliance with this subsection shall
    not be admissible as evidence in any proceeding of any court,
    agency, board, or other entity, except with respect to an action to
    enforce this subsection.
      (15) This subsection may be cited as the "Jeanne Clery Disclosure
    of Campus Security Policy and Campus Crime Statistics Act".
    (g) Data required
      (1) In general
        Each coeducational institution of higher education that
      participates in any program under this subchapter and part C of
      subchapter I of chapter 34 of title 42, and has an
      intercollegiate athletic program, shall annually, for the
      immediately preceding academic year, prepare a report that
      contains the following information regarding intercollegiate
      athletics:
          (A) The number of male and female full-time undergraduates
        that attended the institution.
          (B) A listing of the varsity teams that competed in
        intercollegiate athletic competition and for each such team the
        following data:
            (i) The total number of participants, by team, as of the
          day of the first scheduled contest for the team.
            (ii) Total operating expenses attributable to such teams,
          except that an institution may also report such expenses on a
          per capita basis for each team and expenditures attributable
          to closely related teams such as track and field or swimming
          and diving, may be reported together, although such
          combinations shall be reported separately for men's and
          women's teams.
            (iii) Whether the head coach is male or female and whether
          the head coach is assigned to that team on a full-time or
          part-time basis. Graduate assistants and volunteers who serve
          as head coaches shall be considered to be head coaches for
          the purposes of this clause.
            (iv) The number of assistant coaches who are male and the
          number of assistant coaches who are female for each team and
          whether a particular coach is assigned to that team on a full-
          time or part-time basis. Graduate assistants and volunteers
          who serve as assistant coaches shall be considered to be
          assistant coaches for the purposes of this clause.

          (C) The total amount of money spent on athletically related
        student aid, including the value of waivers of educational
        expenses, separately for men's and women's teams overall.
          (D) The ratio of athletically related student aid awarded
        male athletes to athletically related student aid awarded
        female athletes.
          (E) The total amount of expenditures on recruiting,
        separately for men's and women's teams overall.
          (F) The total annual revenues generated across all men's
        teams and across all women's teams, except that an institution
        may also report such revenues by individual team.
          (G) The average annual institutional salary of the head
        coaches of men's teams, across all offered sports, and the
        average annual institutional salary of the head coaches of
        women's teams, across all offered sports.
          (H) The average annual institutional salary of the assistant
        coaches of men's teams, across all offered sports, and the
        average annual institutional salary of the assistant coaches of
        women's teams, across all offered sports.
          (I)(i) The total revenues, and the revenues from football,
        men's basketball, women's basketball, all other men's sports
        combined and all other women's sports combined, derived by the
        institution from the institution's intercollegiate athletics
        activities.
          (ii) For the purpose of clause (i), revenues from
        intercollegiate athletics activities allocable to a sport shall
        include (without limitation) gate receipts, broadcast revenues,
        appearance guarantees and options, concessions, and
        advertising, but revenues such as student activities fees or
        alumni contributions not so allocable shall be included in the
        calculation of total revenues only.
          (J)(i) The total expenses, and the expenses attributable to
        football, men's basketball, women's basketball, all other men's
        sports combined, and all other women's sports combined, made by
        the institution for the institution's intercollegiate athletics
        activities.
          (ii) For the purpose of clause (i), expenses for
        intercollegiate athletics activities allocable to a sport shall
        include (without limitation) grants-in-aid, salaries, travel,
        equipment, and supplies, but expenses such as general and
        administrative overhead not so allocable shall be included in
        the calculation of total expenses only.
      (2) Special rule
        For the purposes of subparagraph (G),(!2) if a coach has
      responsibilities for more than one team and the institution does
      not allocate such coach's salary by team, the institution should
      divide the salary by the number of teams for which the coach has
      responsibility and allocate the salary among the teams on a basis
      consistent with the coach's responsibilities for the different
      teams.

      (3) Disclosure of information to students and public
        An institution of higher education described in paragraph (1)
      shall make available to students and potential students, upon
      request, and to the public, the information contained in the
      report described in paragraph (1), except that all students shall
      be informed of their right to request such information.
      (4) Submission; report; information availability
        (A) On an annual basis, each institution of higher education
      described in paragraph (1) shall provide to the Secretary, within
      15 days of the date that the institution makes available the
      report under paragraph (1), the information contained in the
      report.
        (B) The Secretary shall prepare a report regarding the
      information received under subparagraph (A) and submit such
      report to the Committee on Education and the Workforce of the
      House of Representatives and the Committee on Labor and Human
      Resources of the Senate by April 1, 2000. The report shall - 
          (i) summarize the information and identify trends in the
        information;
          (ii) aggregate the information by divisions of the National
        Collegiate Athletic Association; and
          (iii) contain information on each individual institution of
        higher education.

        (C) The Secretary shall ensure that the reports described in
      subparagraph (A) and the report to Congress described in
      subparagraph (B) are made available to the public within a
      reasonable period of time.
        (D) Not later than 180 days after October 7, 1998, the
      Secretary shall notify all secondary schools in all States
      regarding the availability of the information reported under
      subparagraph (B) and the information made available under
      paragraph (1), and how such information may be accessed.
      (5) "Operating expenses" defined
        For the purposes of this subsection, the term "operating
      expenses" means expenditures on lodging and meals,
      transportation, officials, uniforms and equipment.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 485, as added Pub. L. 99-498, title
    IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1482; amended Pub. L. 100-
    50, Sec. 15(10), (11), June 3, 1987, 101 Stat. 357; Pub. L. 101-
    542, title I, Secs. 103(a), (b), 104(a), title II, Sec. 204(a),
    Nov. 8, 1990, 104 Stat. 2381-2385; Pub. L. 101-610, title II, Secs.
    201-203, Nov. 16, 1990, 104 Stat. 3171, 3172; Pub. L. 102-26, Sec.
    10(a)-(d), Apr. 9, 1991, 105 Stat. 128; Pub. L. 102-164, title VI,
    Sec. 603, Nov. 15, 1991, 105 Stat. 1066; Pub. L. 102-325, title IV,
    Sec. 486(a)-(c)(2), July 23, 1992, 106 Stat. 620, 621; Pub. L. 103-
    208, Sec. 2(h)(28)-(37), (k)(9), Dec. 20, 1993, 107 Stat. 2477,
    2486; Pub. L. 103-382, title III, Sec. 360B(c), Oct. 20, 1994, 108
    Stat. 3970; Pub. L. 104-208, div. A, title I, Sec. 101(e) [title
    III, Sec. 308], Sept. 30, 1996, 110 Stat. 3009-233, 3009-262; Pub.
    L. 105-18, title VI, Sec. 60001(a), June 12, 1997, 111 Stat. 214;
    Pub. L. 105-244, title I, Sec. 102(b)(3), title IV, Sec. 486, Oct.
    7, 1998, 112 Stat. 1622, 1741; Pub. L. 106-386, div. B, title VI,
    Sec. 1601(c)(1), Oct. 28, 2000, 114 Stat. 1537.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Peace Corps Act, referred to in subsec. (a)(1)(M), is Pub. L.
    87-293, Sept. 22, 1961, 75 Stat. 612, as amended, which is
    classified principally to chapter 34 (Sec. 2501 et seq.) of Title
    22, Foreign Relations and Intercourse. For complete classification
    of this Act to the Code, see Short Title note set out under section
    2501 of Title 22 and Tables.
      The Domestic Volunteer Service Act of 1973, referred to in
    subsec. (a)(1)(M), is Pub. L. 93-113, Oct. 1, 1973, 87 Stat. 394,
    as amended, which is classified principally to chapter 66 (Sec.
    4950 et seq.) of Title 42, The Public Health and Welfare. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 4950 of Title 42 and Tables.
      The Hate Crime Statistics Act, referred to in subsec. (f)(7), is
    Pub. L. 101-275, Apr. 23, 1990, 104 Stat. 140, which is set out as
    a note under section 534 of Title 28, Judiciary and Judicial
    Procedure.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1092, Pub. L. 89-329, title IV, Sec. 485, as
    added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.
    1449, related to provision of institutional and financial
    assistance information for students, prior to the general revision
    of this part by Pub. L. 99-498.
      Another prior section 1092, Pub. L. 89-329, title V, Sec. 508,
    formerly Sec. 502, Nov. 8, 1965, 79 Stat. 1255; renumbered Sec. 508
    and amended Pub. L. 90-35, Secs. 2(b), 7, June 29, 1967, 81 Stat.
    82, 93, prohibited the making of payments for religious purposes
    for authorized programs, prior to repeal by Pub. L. 94-482, title
    I, Sec. 151(a)(2), Oct. 12, 1976, 90 Stat. 2151.

                                AMENDMENTS                            
      2000 - Subsec. (f)(1)(I). Pub. L. 106-386 added subpar. (I).
      1998 - Subsec. (a)(1). Pub. L. 105-244, Sec. 486(a)(1)(B), in
    introductory provisions, inserted after second sentence "Each
    eligible institution shall, on an annual basis, provide to all
    enrolled students a list of the information that is required to be
    provided by institutions to students by this section and section
    1232g of this title, together with a statement of the procedures
    required to obtain such information."
      Pub. L. 105-244, Sec. 486(a)(1)(A), in introductory provisions,
    substituted "upon request, through appropriate publications,
    mailings, and electronic media, to an enrolled student and to any
    prospective student" for ", through appropriate publications and
    mailings, to all current students, and to any prospective student
    upon request".
      Subsec. (a)(1)(F). Pub. L. 105-244, Sec. 486(a)(1)(C), amended
    subpar. (F) generally. Prior to amendment, subpar. (F) read as
    follows: "a statement of the refund policy of the institution, as
    determined under section 1091b of this title, for the return of
    unearned tuition and fees or other refundable portion of cost, as
    described in subparagraph (E) of this paragraph, which refunds
    shall be credited in the following order:
        "(i) to outstanding balances on loans under part B of this
      subchapter for the period of enrollment for which a refund is
      required,
        "(ii) to outstanding balances on loans under part C of this
      subchapter for the period of enrollment for which a refund is
      required,
        "(iii) to outstanding balances on loans under part D of this
      subchapter for the period of enrollment for which a refund is
      required,
        "(iv) to awards under subpart 1 of part A of this subchapter,
        "(v) to awards under subpart 3 of part A of this subchapter,
        "(vi) to other student assistance, and
        "(vii) to the student;".
      Subsec. (a)(1)(O). Pub. L. 105-244, Sec. 486(a)(1)(D)-(F), added
    subpar. (O).
      Subsec. (a)(3)(A). Pub. L. 105-244, Sec. 486(a)(2), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "shall, for any academic year beginning more than 270 days
    after the Secretary first prescribes final regulations pursuant to
    such subparagraph (L), be made available to current and prospective
    students prior to enrolling or entering into any financial
    obligation; and".
      Subsec. (a)(6). Pub. L. 105-244, Sec. 486(a)(3), added par. (6).
      Subsec. (b)(1)(A). Pub. L. 105-244, Sec. 486(b)(1), struck out
    "(individually or in groups)" after "counseling to borrowers" in
    introductory provisions.
      Subsec. (b)(2)(C). Pub. L. 105-244, Sec. 486(b)(2), added subpar.
    (C).
      Subsec. (d). Pub. L. 105-244, Sec. 486(c), designated existing
    provisions as par. (1), redesignated former pars. (1) and (2) as
    subpars. (A) and (B), respectively, and added pars. (2) and (3).
      Subsec. (e)(2). Pub. L. 105-244, Sec. 486(d)(1), substituted "the
    student's parents, guidance" for "his parents, his guidance" and
    inserted at end "If the institution is a member of a national
    collegiate athletic association that compiles graduation rate data
    on behalf of the association's member institutions that the
    Secretary determines is substantially comparable to the information
    described in paragraph (1), the distribution of the compilation of
    such data to all secondary schools in the United States shall
    fulfill the responsibility of the institution to provide
    information to a prospective student athlete's guidance counselor
    and coach."
      Subsec. (e)(9). Pub. L. 105-244, Sec. 486(d)(2), amended par. (9)
    generally. Prior to amendment, par. (9) read as follows: "This
    subsection shall not be effective until the first July 1 that
    follows, by more than 270 days, the date on which the Secretary
    first prescribes final regulations pursuant to this subsection. The
    reports required by this subsection shall be due on that July 1 and
    each succeeding July 1 and shall cover the 1-year period ending
    August 31 of the preceding year."
      Subsec. (f)(1)(F). Pub. L. 105-244, Sec. 486(e)(1)(A), amended
    subpar. (F) generally. Prior to amendment, subpar. (F) read as
    follows: "Statistics concerning the occurrence on campus, during
    the most recent calendar year, and during the 2 preceding calendar
    years for which data are available, of the following criminal
    offenses reported to campus security authorities or local police
    agencies - 
        "(i) murder;
        "(ii) sex offenses, forcible or nonforcible;
        "(iii) robbery;
        "(iv) aggravated assault;
        "(v) burglary; and
        "(vi) motor vehicle theft."
      Subsec. (f)(1)(H). Pub. L. 105-244, Sec. 486(e)(1)(B), (C),
    redesignated subpar. (I) as (H) and struck out former subpar. (H)
    which read as follows: "Statistics concerning the number of arrests
    for the following crimes occurring on campus:
        "(i) liquor law violations;
        "(ii) drug abuse violations; and
        "(iii) weapons possessions."
      Subsec. (f)(1)(I). Pub. L. 105-244, Sec. 486(e)(1)(C),
    redesignated subpar. (I) as (H).
      Pub. L. 105-244, Sec. 102(b)(3), substituted "section 1011i" for
    "section 1145g".
      Subsec. (f)(4). Pub. L. 105-244, Sec. 486(e)(6), added par. (4).
    Former par. (4) redesignated (5).
      Pub. L. 105-244, Sec. 486(e)(2)(A), which directed the
    substitution of "On an annual basis, each" for "Upon request of the
    Secretary, each" was executed by making the substitution for "Upon
    the request of the Secretary, each" to reflect the probable intent
    of Congress.
      Pub. L. 105-244, Sec. 486(e)(2)(B), substituted "paragraph
    (1)(F)" for "paragraphs (1)(F) and (1)(H)".
      Subsec. (f)(4)(A). Pub. L. 105-244, Sec. 486(e)(2)(C)-(E),
    substituted "and the Workforce" for "and Labor" and "2000" for
    "1995" and struck out "and" at end.
      Subsec. (f)(4)(B), (C). Pub. L. 105-244, Sec. 486(e)(2)(F), (G),
    added subpar. (B) and redesignated former subpar. (B) as (C).
      Subsec. (f)(5). Pub. L. 105-244, Sec. 486(e)(5), redesignated
    par. (4) as (5). Former par. (5) redesignated (6).
      Subsec. (f)(5)(A). Pub. L. 105-244, Sec. 486(e)(3), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "For purposes of this subsection, the term 'campus'
    includes - 
        "(i) any building or property owned or controlled by the
      institution of higher education within the same reasonably
      contiguous geographic area and used by the institution in direct
      support of, or related to its educational purposes; or
        "(ii) any building or property owned or controlled by student
      organizations recognized by the institution."
      Subsec. (f)(6). Pub. L. 105-244, Sec. 486(e)(5), redesignated
    par. (5) as (6). Former par. (6) redesignated (7).
      Pub. L. 105-244, Sec. 486(e)(4), substituted "paragraph (1)(F)"
    for "paragraphs (1)(F) and (1)(H)" and inserted at end "Such
    statistics shall not identify victims of crimes or persons accused
    of crimes."
      Subsec. (f)(7), (8). Pub. L. 105-244, Sec. 486(e)(5),
    redesignated pars. (6) and (7) as (7) and (8), respectively.
      Subsec. (f)(9) to (15). Pub. L. 105-244, Sec. 486(e)(7), added
    pars. (9) to (15).
      Subsec. (g)(1)(I), (J). Pub. L. 105-244, Sec. 486(f)(1), added
    subpars. (I) and (J).
      Subsec. (g)(4), (5). Pub. L. 105-244, Sec. 486(f)(2)-(4), added
    par. (4), redesignated former par. (4) as (5), and struck out
    heading and text of former par. (5). Text read as follows: "The
    Secretary shall issue final regulations to implement the
    requirements of this subsection not later than 180 days following
    October 20, 1994. Each institution described in paragraph (1) shall
    make available its first report pursuant to this section not later
    than October 1, 1996."
      1997 - Subsec. (a)(3)(B). Pub. L. 105-18, Sec. 60001(a)(1),
    substituted "August 31" for "June 30".
      Subsec. (e)(9). Pub. L. 105-18, Sec. 60001(a)(2), substituted
    "August 31" for "August 30".
      1996 - Subsec. (e)(9). Pub. L. 104-208 substituted "August 30"
    for "June 30".
      1994 - Subsec. (g). Pub. L. 103-382 added subsec. (g).
      1993 - Subsec. (a)(1)(F)(i) to (iii). Pub. L. 103-208, Sec.
    2(h)(28), inserted before comma at end "for the period of
    enrollment for which a refund is required".
      Subsec. (a)(1)(F)(iv). Pub. L. 103-208, Sec. 2(h)(29), inserted
    "under" after "awards".
      Subsec. (a)(1)(F)(vi). Pub. L. 103-208, Sec. 2(h)(32),
    redesignated cl. (vii) as (vi) and struck out former cl. (vi) which
    read as follows: "to awards under part C of subchapter I of chapter
    34 of title 42,".
      Subsec. (a)(1)(F)(vii). Pub. L. 103-208, Sec. 2(h)(32),
    redesignated cl. (viii) as (vii). Former cl. (vii) redesignated
    (vi).
      Pub. L. 103-208, Sec. 2(h)(30), struck out "provided under this
    subchapter and part C of subchapter I of chapter 34 of title 42"
    after "student assistance".
      Subsec. (a)(1)(F)(viii). Pub. L. 103-208, Sec. 2(h)(32),
    redesignated cl. (viii) as (vii).
      Pub. L. 103-208, Sec. 2(h)(31), struck out period after
    "student".
      Subsec. (a)(1)(L). Pub. L. 103-208, Sec. 2(k)(9), amended
    directory language of Pub. L. 102-325, Sec. 486(a)(3). See 1992
    Amendment note below.
      Pub. L. 103-208, Sec. 2(h)(33), inserted comma after "full-time".
      Subsec. (a)(3)(A). Pub. L. 103-208, Sec. 2(h)(34), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "shall be available beginning on July 1, 1993, and each
    year thereafter to current and prospective students prior to
    enrolling or entering into any financial obligation; and".
      Subsec. (b)(1)(A), (2)(A). Pub. L. 103-208, Sec. 2(h)(35),
    substituted "under part" for "under parts".
      Subsec. (d). Pub. L. 103-208, Sec. 2(h)(36), inserted period at
    end of penultimate sentence.
      Subsec. (e)(9). Pub. L. 103-208, Sec. 2(h)(37), added subpar.
    (9).
      1992 - Subsec. (a)(1)(F). Pub. L. 102-325, Sec. 486(a)(1),
    inserted ", as determined under section 1091b of this title," after
    "of the institution" and ", which refunds shall be credited in the
    following order:" after "of this paragraph" and added cls. (i) to
    (viii).
      Subsec. (a)(1)(K). Pub. L. 102-325, Sec. 486(a)(2), struck out
    "and" at end.
      Subsec. (a)(1)(L). Pub. L. 102-325, Sec. 486(a)(4), redesignated
    subpar. (L), relating to deferral or partial cancellation of
    student loans, as (M).
      Pub. L. 102-325, Sec. 486(a)(3), as amended by Pub. L. 103-208,
    Sec. 2(k)(9), amended subpar. (L), relating to completion or
    graduation rate, by substituting semicolon for period at end.
      Subsec. (a)(1)(M). Pub. L. 102-325, Sec. 486(a)(4), (5),
    redesignated subpar. (L), relating to deferral or partial
    cancellation of student loans, as (M) and substituted "; and" for
    period at end.
      Subsec. (a)(1)(N). Pub. L. 102-325, Sec. 486(a)(6), added subpar.
    (N).
      Subsec. (b). Pub. L. 102-325, Sec. 486(b), amended subsec. (b)
    generally, making changes in substance and structure of former text
    which related to exit counseling for borrowers and borrower
    information.
      Subsec. (f)(1)(F). Pub. L. 102-325, Sec. 486(c)(1), amended
    subpar. (F) generally. Prior to amendment, subpar. (F) read as
    follows: "Statistics concerning the occurrence on campus, during
    the most recent calendar year, and during the 2 preceding calendar
    years for which data are available, of the following criminal
    offenses reported to campus security authorities or local police
    agencies - 
        "(i) murder;
        "(ii) rape;
        "(iii) robbery;
        "(iv) aggravated assault;
        "(v) burglary; and
        "(vi) motor vehicle theft."
      Subsec. (f)(7). Pub. L. 102-325, Sec. 486(c)(2), added par. (7).
      1991 - Subsec. (a)(1)(L). Pub. L. 102-26, Sec. 10(a), which
    directed the insertion of "undergraduate" after "full-time" in
    subpar. (L), was executed to the subpar. (L) added by Pub. L. 101-
    542, Sec. 103(a), relating to completion or graduation rate, to
    reflect the probable intent of Congress.
      Subsec. (a)(3)(A) to (C). Pub. L. 102-26, Sec. 10(b), inserted
    "and" at end of subpar. (A), substituted a period for "; and" at
    end of subpar. (B), and struck out subpar. (C) which read as
    follows: "shall be updated not less than biennially."
      Subsec. (a)(5). Pub. L. 102-26, Sec. 10(c), added par. (5).
      Subsec. (b). Pub. L. 102-164 substituted "Exit counseling for
    borrowers; borrower information" for "Exit counseling for
    borrowers" in heading and inserted at end "Each eligible
    institution shall require that the borrower of a loan made under
    part B, part C, or part D of this subchapter submit to the
    institution, during the exit interview required by this subsection,
    the borrower's expected permanent address after leaving the
    institution, regardless of the reason for leaving; the name and
    address of the borrower's expected employer after leaving the
    institution; and the address of the borrower's next of kin. In the
    case of a loan made under part B of this subchapter, the
    institution shall then submit this information to the holder of the
    loan."
      Subsec. (f)(1). Pub. L. 102-26, Sec. 10(d), substituted "August
    1, 1991," for "September 1, 1991," in introductory provisions, and
    in subpar. (F) substituted "calendar year" and "calendar years" for
    "school year" and "school years", respectively.
      1990 - Subsec. (a)(1)(L). Pub. L. 101-610, Sec. 201, added
    subpar. (L) relating to deferral or partial cancellation of student
    loans.
      Pub. L. 101-542, Sec. 103(a), added subpar. (L) relating to
    completion or graduation rate.
      Subsec. (a)(3), (4). Pub. L. 101-542, Sec. 103(b), added pars.
    (3) and (4).
      Subsec. (b)(3). Pub. L. 101-610, Sec. 202, added par. (3).
      Subsec. (d). Pub. L. 101-610, Sec. 203, inserted before last
    sentence "The Secretary shall provide information concerning the
    specific terms and conditions under which students may obtain
    partial or total cancellation or defer repayment of loans for
    service, shall indicate (in terms of the Federal minimum wage) the
    maximum level of compensation and allowances that a student
    borrower may receive from a tax-exempt organization to qualify for
    a deferment, and shall explicitly state that students may qualify
    for such partial cancellations or deferments when they serve as a
    paid employee of a tax-exempt organization".
      Subsec. (e). Pub. L. 101-542, Sec. 104(a), added subsec. (e).
      Subsec. (f). Pub. L. 101-542, Sec. 204(a), added subsec. (f).
      1987 - Subsec. (b). Pub. L. 100-50, Sec. 15(10), inserted "(other
    than loans made pursuant to section 1078-2 of this title)" after
    "part B of this subchapter".
      Subsec. (d). Pub. L. 100-50, Sec. 15(11), inserted after second
    sentence "In addition, such information shall include information
    to enable borrowers to assess the practical consequences of loan
    consolidation, including differences in deferment eligibility,
    interest rates, monthly payments, and finance charges, and samples
    of loan consolidation profiles to illustrate such consequences."

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     EFFECTIVE DATE OF 2000 AMENDMENT                 
      Pub. L. 106-386, div. B, title VI, Sec. 1601(c)(2), Oct. 28,
    2000, 114 Stat. 1538, provided that: "The amendment made by this
    subsection [amending this section] shall take effect 2 years after
    the date of the enactment of this Act [Oct. 28, 2000]."

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

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 60001(b) of Pub. L. 105-18 provided that:
      "(1) In General. - Except as provided in paragraph (2), the
    amendments made by subsection (a) [amending this section] are
    effective upon enactment [June 12, 1997].
      "(2) Information dissemination. - No institution shall be
    required to comply with the amendment made by subsection (a)(1)
    [amending this section] before July 1, 1998."

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by section 486(a), (b), and (c)(2) of Pub. L. 102-325
    effective July 23, 1992, except that changes relating to
    disclosures effective with respect to periods of enrollment
    beginning on or after July 1, 1993, see section 498 of Pub. L. 102-
    325, set out as a note under section 1088 of this title.
      Section 486(c)(3) of Pub. L. 102-325 provided that: "The
    amendment made by this subsection to subparagraph (F)(ii) of
    section 485(f)(1) of the Act [20 U.S.C. 1092(f)(1)(F)(ii)] shall be
    effective with respect to reports made pursuant to such section on
    or after September 1, 1993. The statistics required by subparagraph
    (F) of such section shall - 
        "(A) in the report required on September 1, 1992, include
      statistics concerning the occurrence on campus of offenses during
      the period from August 1, 1991, to July 31, 1992;
        "(B) in the report required on September 1, 1993, include
      statistics concerning the occurrence on campus of offenses during
      (i) the period from August 1, 1991, to December 31, 1991, and
      (ii) the calendar year 1992;
        "(C) in the report required on September 1, 1994, include
      statistics concerning the occurrence on campus of offenses during
      (i) the period from August 1, 1991, to December 31, 1991, and
      (ii) the calendar years 1992 and 1993; and
        "(D) in the report required on September 1 of 1995 and each
      succeeding year, include statistics concerning the occurrence on
      campus of offenses during the three calendar years preceding the
      year in which the report is made."

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 104(b) of Pub. L. 101-542, as amended by Pub. L. 102-26,
    Sec. 10(e), Apr. 9, 1991, 105 Stat. 128, provided that: "The report
    to the Secretary of Education required by the amendments made by
    this section [amending this section] shall be due on July 1, 1993,
    and annually thereafter, and shall cover the one-year period ending
    on June 30 of the preceding year."
      Section 204(c) of Pub. L. 101-542 provided that: "The amendments
    made by this section [amending this section] shall take effect on
    September 1, 1991, except that the requirement of section
    485(f)(1)(F) and (H) of the Higher Education Act of 1965 [subsec.
    (f)(1)(F), (H) of this section] (as added by this section) shall be
    applied to require statistics with respect to school years
    preceding the date of enactment of this Act [Nov. 8, 1990] only to
    the extent that data concerning such years is reasonably
    available."

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

                              EFFECTIVE DATE                          
      Section effective Oct. 17, 1986, except as otherwise provided,
    see section 2 of Pub. L. 99-498, set out as a note under section
    1001 of this title.
      Subsec. (b) of this section applicable only to periods of
    enrollment beginning on or after July 1, 1987, see section 407(b)
    of Pub. L. 99-498, set out as a note under section 1091 of this
    title.

                                REGULATIONS                            
      Section 401(a) of Pub. L. 101-542 provided that: "The Secretary
    is authorized to issue regulations to carry out the provisions of
    this Act [amending this section and sections 1085, 1094, and 1232g
    of this title and enacting provisions set out as notes under this
    section and section 1001 of this title]."

                          CONGRESSIONAL FINDINGS                      
      Section 360B(b) of Pub. L. 103-382 provided that: "The Congress
    finds that - 
        "(1) participation in athletic pursuits plays an important role
      in teaching young Americans how to work on teams, handle
      challenges and overcome obstacles;
        "(2) participation in athletic pursuits plays an important role
      in keeping the minds and bodies of young Americans healthy and
      physically fit;
        "(3) there is increasing concern among citizens, educators, and
      public officials regarding the athletic opportunities for young
      men and women at institutions of higher education;
        "(4) a recent study by the National Collegiate Athletic
      Association found that in Division I-A institutions, only 20
      percent of the average athletic department operations budget of
      $1,310,000 is spent on women's athletics; 15 percent of the
      average recruiting budget of $318,402 is spent on recruiting
      female athletes; the average scholarship expenses for men is
      $1,300,000 and $505,246 for women; and an average of 143 grants
      are awarded to male athletes and 59 to women athletes;
        "(5) female college athletes receive less than 18 percent of
      the athletics recruiting dollar and less than 24 percent of the
      athletics operating dollar;
        "(6) male college athletes receive approximately $179,000,000
      more per year in athletic scholarship grants than female college
      athletes;
        "(7) prospective students and prospective student athletes
      should be aware of the commitments of an institution to providing
      equitable athletic opportunities for its men and women students;
      and
        "(8) knowledge of an institution's expenditures for women's and
      men's athletic programs would help prospective students and
      prospective student athletes make informed judgments about the
      commitments of a given institution of higher education to
      providing equitable athletic benefits to its men and women
      students."
      Section 102 of Pub. L. 101-542 provided that: "The Congress finds
    that - 
        "(1) education is fundamental to the development of individual
      citizens and the progress of the Nation as a whole;
        "(2) there is increasing concern among citizens, educators, and
      public officials regarding the academic performance of students
      at institutions of higher education;
        "(3) a recent study by the National Institute of Independent
      Colleges and Universities found that just 43 percent of students
      attending 4-year public colleges and universities and 54 percent
      of students entering private institutions graduated within 6
      years of enrolling;
        "(4) the academic performance of student athletes, especially
      student athletes receiving football and basketball scholarships,
      has been a source of great concern in recent years;
        "(5) more than 10,000 athletic scholarships are provided
      annually by institutions of higher education;
        "(6) prospective students and prospective student athletes
      should be aware of the educational commitments of an institution
      of higher education; and
        "(7) knowledge of graduation rates would help prospective
      students and prospective student athletes make an informed
      judgment about the educational benefits available at a given
      institution of higher education."
      Section 202 of Pub. L. 101-542 provided that: "The Congress finds
    that - 
        "(1) the reported incidence of crime, particularly violent
      crime, on some college campuses has steadily risen in recent
      years;
        "(2) although annual 'National Campus Violence Surveys'
      indicate that roughly 80 percent of campus crimes are committed
      by a student upon another student and that approximately 95
      percent of the campus crimes that are violent are alcohol- or
      drug-related, there are currently no comprehensive data on campus
      crimes;
        "(3) out of 8,000 postsecondary institutions participating in
      Federal student aid programs, only 352 colleges and universities
      voluntarily provide crime statistics directly through the Uniform
      Crime Report of the Federal Bureau of Investigation, and other
      institutions report data indirectly, through local police
      agencies or States, in a manner that does not permit campus
      statistics to be separated;
        "(4) several State legislatures have adopted or are considering
      legislation to require reporting of campus crime statistics and
      dissemination of security practices and procedures, but the bills
      are not uniform in their requirements and standards;
        "(5) students and employees of institutions of higher education
      should be aware of the incidence of crime on campus and policies
      and procedures to prevent crime or to report occurrences of
      crime;
        "(6) applicants for enrollment at a college or university, and
      their parents, should have access to information about the crime
      statistics of that institution and its security policies and
      procedures; and
        "(7) while many institutions have established crime preventive
      measures to increase the safety of campuses, there is a clear
      need - 
          "(A) to encourage the development on all campuses of security
        policies and procedures;
          "(B) for uniformity and consistency in the reporting of
        crimes on campus; and
          "(C) to encourage the development of policies and procedures
        to address sexual assaults and racial violence on college
        campuses."

-FOOTNOTE-
    (!1) So in original. Probably should be "or under".

    (!2) So in original. Probably should be "paragraph (1)(G),".


-End-



-CITE-
    20 USC Sec. 1092a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1092a. Combined payment plan

-STATUTE-
    (a) Eligibility for plan
      Upon the request of the borrower, a lender described in
    subparagraph (A), (B), or (C) of section 1078-3(a)(1) of this
    title, or defined in subpart I (!1) of part C of title VII of the
    Public Health Service Act may, with respect to a consolidation loan
    made under section 1078-3 of this title (and section 1087-2(o) of
    this title as in effect prior to the enactment of section 1078-3 of
    this title) and loans guaranteed under subpart I (!1) of part C of
    title VII of the Public Health Service Act (known as Health
    Education Assistance Loans), offer a combined payment plan under
    which the lender shall submit one bill to the borrower for the
    repayment of all such loans for the monthly or other similar period
    of repayment.

    (b) Applicability of other requirements
      A lender offering a combined payment plan shall comply with all
    provisions of section 1078-3 of this title applicable to loans
    consolidated or to be consolidated and shall comply with all
    provisions of subpart I (!1) of part C of title VII of the Public
    Health Service Act applicable to loans under that subpart which are
    made part of the combined payment plan, except that a lender
    offering a combined payment plan under this section may offer
    consolidation loans pursuant to section 1078-3(b)(1)(A) of this
    title if such lender holds any outstanding loan of a borrower which
    is selected for inclusion in a combined payment plan.
    (c) Lender eligibility
      Such lender may offer a combined payment plan only if - 
        (1) the lender holds an outstanding loan of that borrower which
      is selected by the borrower for incorporation into a combined
      payment plan pursuant to this section (including loans which are
      selected by the borrower for consolidation under this section);
      or
        (2) the borrower certifies that the borrower has sought and has
      been unable to obtain a combined payment plan from the holders of
      the outstanding loans of that borrower.
    (d) Borrower selection of competing offers
      In the case of multiple offers by lenders to administer a
    combined payment plan for a borrower, the borrower shall select
    from among them the lender to administer the combined payment plan
    including its loan consolidation component.
    (e) Effect of plan
      Upon selection of a lender to administer the combined payment
    plan, the lender may reissue any Health Education Assistance Loan
    selected by the borrower for incorporation in the combined payment
    plan which is not held by such lender and the proceeds of such
    reissued loan shall be paid by the lender to the holder or holders
    of the loans so selected to discharge the liability on such loans,
    if - 
        (1) the lender selected to administer the combined payment plan
      has determined to its satisfaction, in accordance with reasonable
      and prudent business practices, for each loan being reissued (A)
      that the loan is a legal, valid, and binding obligation of the
      borrower; (B) that each such loan was made and serviced in
      compliance with applicable laws and regulations; and (C) the
      insurance on such loan is in full force and effect; and
        (2) the loan being reissued was not in default (as defined in
      section 733(e)(3) (!2) of the Public Health Service Act) at the
      time the request for a combined payment plan is made.

    (f) Notes and insurance certificates
      (1) Each loan reissued under subsection (e) of this section shall
    be evidenced by a note executed by the borrower. The Secretary of
    Health and Human Services shall insure such loan under a
    certificate of comprehensive insurance with no insurance limit, but
    any such certificate shall only be issued to an authorized holder
    of loans insured under subpart I (!2) of part C of title VII of the
    Public Health Service Act (including the Student Loan Marketing
    Association). Such certificates shall provide that all loans
    reissued under this section shall be fully insured against loss of
    principal and interest. Any insurance issued with respect to loans
    reissued under this section shall be excluded from the limitation
    on maximum insurance authority set forth in section 728(a) (!2) of
    the Public Health Service Act. Notwithstanding the provisions of
    section 729(a) (!2) of the Public Health Service Act, the reissued
    loan shall be made in an amount, including outstanding principal,
    capitalized interest, accrued unpaid interest not yet capitalized,
    and authorized late charges. The proceeds of each such loan will be
    paid by the lender to the holder of the original loan being
    reissued and the borrower's obligation to that holder on that loan
    shall be discharged.
      (2) Except as otherwise specifically provided for under the
    provisions of this section, the terms of any reissued loan shall be
    the same as the terms of the original loan. The maximum repayment
    period for a loan reissued under this section shall not exceed the
    remainder of the period which would have been permitted on the
    original loan. If the lender holds more than one loan insured under
    subpart I (!2) of part C of title VII of the Public Health Service
    Act, the maximum repayment period for all such loans may extend to
    the latest date permitted for any individual loan. Any reissued
    loan may be consolidated with any other Health Education Assistance
    Loan as provided in the Public Health Service Act [42 U.S.C. 201 et
    seq.], and, with the concurrence of the borrower, repayment of any
    such loans during any period may be made in amounts that are less
    than the interest that accrues on such loans during that period.
    (g) Termination of borrower eligibility
      The status of an individual as an eligible combined payment plan
    borrower terminates upon receipt of a combined payment plan.
    (h) Fees and premiums
      No origination fee or insurance premium shall be charged to the
    borrower on any combined payment plan, and no origination fee or
    insurance premium shall be payable by the lender to the Secretary
    of Health and Human Services.
    (i) Commencement of repayment
      Repayment of a combined payment plan shall commence within 60
    days after the later of the date of acceptance of the lender's
    offer to administer a combined payment plan, the making of the
    consolidation loan or the reissuance of any Health Education
    Assistance Loans pursuant to subsection (e) of this section.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 485A, as added Pub. L. 99-498,
    title IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1484; amended Pub.
    L. 100-50, Sec. 15(12), June 3, 1987, 101 Stat. 357.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Public Health Service Act, referred to in subsecs. (a), (b),
    and (f), is act July 1, 1944, ch. 373, 58 Stat. 682, as amended,
    which is classified generally to chapter 6A (Sec. 201 et seq.) of
    Title 42, The Public Health and Welfare. Subpart I of part C of
    title VII of the Act was classified generally to subpart I (Sec.
    294 et seq.) of part C of subchapter V of chapter 6A of Title 42
    and was omitted in the general revision of subchapter V of chapter
    6A by Pub. L. 102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat.
    1994. See subpart I (Sec. 292 et seq.) of part A of subchapter V of
    chapter 6A. Sections 728, 729, and 733 of the Act were classified
    to sections 294a, 294b, and 294f, respectively, of Title 42 and
    were omitted in the general revision of subchapter V by Pub. L. 102-
    408. Pub. L. 102-408 enacted a new section 728 of act July 1,
    1944, relating to distribution of assets, a new section 762,
    relating to special projects, and a new section 763, relating to
    preventive medicine and dental public health which are classified
    to sections 292x, 294a, and 294b, respectively, of Title 42. See
    sections 292a, 292b, and 292f, respectively, of Title 42. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 201 of Title 42 and Tables.


-MISC1-
                                AMENDMENTS                            
      1987 - Subsec. (a). Pub. L. 100-50 substituted "subparagraph (A),
    (B), or (C)" for "clause (i), (ii), or (iii)".

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1092b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1092b. National Student Loan Data System

-STATUTE-
    (a) Development of System
      The Secretary shall consult with a representative group of
    guaranty agencies, eligible lenders, and eligible institutions to
    develop a mutually agreeable proposal for the establishment of a
    National Student Loan Data System containing information regarding
    loans made, insured, or guaranteed under part B of this subchapter
    and loans made under parts C and D of this subchapter, and for
    allowing the electronic exchange of data between program
    participants and the system. In establishing such data system, the
    Secretary shall place a priority on providing for the monitoring of
    enrollment, student status, information about current loan holders
    and servicers, and internship and residency information. Such data
    system shall also permit borrowers to use the system to identify
    the current loan holders and servicers of such borrower's loan not
    later than one year after October 7, 1998. The information in the
    data system shall include (but is not limited to) - 
        (1) the amount and type of each such loan made;
        (2) the names and social security numbers of the borrowers;
        (3) the guaranty agency responsible for the guarantee of the
      loan;
        (4) the institution of higher education or organization
      responsible for loans made under parts C and D of this
      subchapter;
        (5) (!1) the exact amount of loans partially or totally
      canceled or in deferment for service under the Peace Corps Act
      (22 U.S.C. 2501 et seq.)),(!2) for service under the Domestic
      Volunteer Service Act of 1973 [42 U.S.C. 4950 et seq.], and for
      comparable full-time service as a volunteer for a tax-exempt
      organization of demonstrated effectiveness.(!3)



        (5) (!1) the eligible institution in which the student was
      enrolled or accepted for enrollment at the time the loan was
      made, and any additional institutions attended by the borrower;
        (6) the total amount of loans made to any borrower and the
      remaining balance of the loans;
        (7) the lender, holder, and servicer of such loans;
        (8) information concerning the date of any default on the loan
      and the collection of the loan, including any information
      concerning the repayment status of any defaulted loan on which
      the Secretary has made a payment pursuant to section 1080(a) of
      this title or the guaranty agency has made a payment to the
      previous holder of the loan;
        (9) information regarding any deferments or forbearance granted
      on such loans; and
        (10) the date of cancellation of the note upon completion of
      repayment by the borrower of the loan or payment by the Secretary
      pursuant to section 1087 of this title.
    (b) Additional information
      For the purposes of research and policy analysis, the proposal
    shall also contain provisions for obtaining additional data
    concerning the characteristics of borrowers and the extent of
    student loan indebtedness on a statistically valid sample of
    borrowers under part B of this subchapter. Such data shall include -
     
        (1) information concerning the income level of the borrower and
      his family and the extent of the borrower's need for student
      financial assistance, including loans;
        (2) information concerning the type of institution attended by
      the borrower and the year of the program of education for which
      the loan was obtained;
        (3) information concerning other student financial assistance
      received by the borrower; and
        (4) information concerning Federal costs associated with the
      student loan program under part B of this subchapter, including
      the costs of interest subsidies, special allowance payments, and
      other subsidies.
    (c) Verification
      The Secretary may require lenders, guaranty agencies, or
    institutions of higher education to verify information or obtain
    eligibility or other information through the National Student Loan
    Data System prior to making, guaranteeing, or certifying a loan
    made under part B, C, or D of this subchapter.
    (d) Omitted
    (e) Standardization of data reporting
      (1) In general
        The Secretary shall by regulation prescribe standards and
      procedures (including relevant definitions) that require all
      lenders and guaranty agencies to report information on all
      aspects of loans made under this subchapter and part C of
      subchapter I of chapter 34 of title 42 in uniform formats in
      order to permit the direct comparison of data submitted by
      individual lenders, servicers or guaranty agencies.
      (2) Activities
        For the purpose of establishing standards under this section,
      the Secretary shall - 
          (A) consult with guaranty agencies, lenders, institutions of
        higher education, and organizations representing the groups
        described in paragraph (1);
          (B) develop standards designed to be implemented by all
        guaranty agencies and lenders with minimum modifications to
        existing data processing hardware and software; and
          (C) publish the specifications selected to be used to
        encourage the automation of exchanges of information between
        all parties involved in loans under this subchapter and part C
        of subchapter I of chapter 34 of title 42.
    (f) Common identifiers
      The Secretary shall, not later than July 1, 1993 - 
        (1) revise the codes used to identify institutions and students
      in the student loan data system authorized by this section to
      make such codes consistent with the codes used in each database
      used by the Department of Education that contains information of
      participation in programs under this subchapter and part C of
      subchapter I of chapter 34 of title 42; and
        (2) modify the design or operation of the system authorized by
      this section to ensure that data relating to any institution is
      readily accessible and can be used in a form compatible with the
      integrated postsecondary education data system (IPEDS).
    (g) Integration of databases
      The Secretary shall integrate the National Student Loan Data
    System with the Pell Grant applicant and recipient databases as of
    January 1, 1994, and any other databases containing information on
    participation in programs under this subchapter and part C of
    subchapter I of chapter 34 of title 42.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 485B, as added Pub. L. 99-498,
    title IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1486; amended Pub.
    L. 100-50, Sec. 15(13), June 3, 1987, 101 Stat. 357; Pub. L. 101-
    239, title II, Sec. 2008, Dec. 19, 1989, 103 Stat. 2121; Pub. L.
    101-610, title II, Sec. 204, Nov. 16, 1990, 104 Stat. 3172; Pub. L.
    102-325, title IV, Sec. 487, July 23, 1992, 106 Stat. 623; Pub. L.
    103-208, Sec. 2(h)(38)-(41), Dec. 20, 1993, 107 Stat. 2478; Pub. L.
    105-244, title IV, Sec. 487, Oct. 7, 1998, 112 Stat. 1746.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Peace Corps Act, referred to in subsec. (a)(5), is Pub. L. 87-
    293, Sept. 22, 1961, 75 Stat. 612, as amended, which is classified
    principally to chapter 34 (Sec. 2501 et seq.) of Title 22, Foreign
    Relations and Intercourse. For complete classification of this Act
    to the Code, see Short Title note set out under section 2501 of
    Title 22 and Tables.
      The Domestic Volunteer Service Act of 1973, referred to in
    subsec. (a)(5), is Pub. L. 93-113, Oct. 1, 1973, 87 Stat. 394, as
    amended, which is classified principally to chapter 66 (Sec. 4950
    et seq.) of Title 42, The Public Health and Welfare. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 4950 of Title 42 and Tables.

-COD-
                               CODIFICATION                           
      Subsec. (d) of this section, which required the Secretary to
    prepare and submit to appropriate committees of Congress, in each
    fiscal year, a report describing the results obtained by the
    establishment and operation of the student loan data system
    authorized by this section, terminated, effective May 15, 2000,
    pursuant to section 3003 of Pub. L. 104-66, as amended, set out as
    a note under section 1113 of Title 31, Money and Finance. See,
    also, page 80 of House Document No. 103-7.


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a). Pub. L. 105-244 inserted "not later than one
    year after October 7, 1998" before period at end of third sentence.
      1993 - Subsec. (a). Pub. L. 103-208, Sec. 2(h)(38), substituted
    "parts C and D of this subchapter" for "part D of this subchapter"
    and struck out second period at end of third sentence.
      Subsec. (a)(4). Pub. L. 103-208, Sec. 2(h)(39), substituted
    "parts C and D of this subchapter" for "part D of this subchapter".
      Subsec. (c). Pub. L. 103-208, Sec. 2(h)(40), substituted "part B,
    C, or D of this subchapter" for "part B or part D of this
    subchapter".
      Subsec. (e)(1), (2)(C). Pub. L. 103-208, Sec. 2(h)(41),
    substituted "under this subchapter and part C of subchapter I of
    chapter 34 of title 42" for "under this part".
      1992 - Subsec. (a). Pub. L. 102-325, Sec. 487(a), inserted ", and
    for allowing the electronic exchange of data between program
    participants and the system. In establishing such data system, the
    Secretary shall place a priority on providing for the monitoring of
    enrollment, student status, information about current loan holders
    and servicers, and internship and residency information. Such data
    system shall also permit borrowers to use the system to identify
    the current loan holders and servicers of such borrower's loan."
    after "part D of this subchapter".
      Subsecs. (e) to (g). Pub. L. 102-325, Sec. 487(b), added subsecs.
    (e) to (g).
      1990 - Subsec. (a)(5). Pub. L. 101-610 added subsec. (a)(5)
    relating to loan cancellations and deferments.
      1989 - Pub. L. 101-239 amended section generally, substituting
    subsecs. (a) to (d) for former subsec. (a) relating to authority of
    Secretary, subsec. (b) relating to access to information, subsec.
    (c) relating to verification not required, and subsec. (d) relating
    to report to Congress.
      1987 - Subsec. (b)(1). Pub. L. 100-50, Sec. 15(13)(A),
    substituted "public agencies" for "Federal agencies".
      Subsec. (b)(2)(D). Pub. L. 100-50, Sec. 15(13)(B), substituted
    "of any borrower" for "of a borrower for whom the guaranty agency
    provides insurance".
      Subsec. (b)(3). Pub. L. 100-50, Sec. 15(13)(C), substituted
    "public agency" for "Federal agency".

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

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

-FOOTNOTE-               

    (!1) So in original. Two pars. (5) have been enacted.

    (!2) So in original.

    (!3) So in original. The period probably should be a semicolon.


-End-



-CITE-
    20 USC Sec. 1092c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1092c. Simplification of lending process for borrowers

-STATUTE-
    (a) All like loans treated as one
      To the extent practicable, and with the cooperation of the
    borrower, eligible lenders shall treat all loans made to a borrower
    under the same section of part B of this subchapter as one loan and
    shall submit one bill to the borrower for the repayment of all such
    loans for the monthly or other similar period of repayment. Any
    deferments on one such loan will be considered a deferment on the
    total amount of all such loans.
    (b) One lender, one guaranty agency
      To the extent practicable, and with the cooperation of the
    borrower, the guaranty agency shall ensure that a borrower only
    have one lender, one holder, one guaranty agency, and one servicer
    with which to maintain contact.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 485C, as added Pub. L. 102-325,
    title IV, Sec. 488, July 23, 1992, 106 Stat. 624.)

-End-



-CITE-
    20 USC Sec. 1092d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1092d. Scholarship fraud assessment and awareness activities

-STATUTE-
    (a) Annual report on scholarship fraud
      (1) Requirement
        The Attorney General and the Secretary of Education, in
      conjunction with the Federal Trade Commission, shall jointly
      submit to Congress each year a report on fraud in the offering of
      financial assistance for purposes of financing an education at an
      institution of higher education. Each report shall contain an
      assessment of the nature and quantity of incidents of such fraud
      during the one-year period ending on the date of such report.
      (2) Initial report
        The first report under paragraph (1) shall be submitted not
      later than 18 months after November 1, 2000.
    (b) National awareness activities
      The Secretary of Education shall, in conjunction with the Federal
    Trade Commission, maintain a scholarship fraud awareness site on
    the Internet web site of the Department of Education. The
    scholarship fraud awareness site may include the following:
        (1) Appropriate materials from the Project Scholarscam
      awareness campaign of the Commission, including examples of
      common fraudulent schemes.
        (2) A list of companies and individuals who have been convicted
      of scholarship fraud in Federal or State court.
        (3) An Internet-based message board to provide a forum for
      public complaints and experiences with scholarship fraud.
        (4) An electronic comment form for individuals who have
      experienced scholarship fraud or have questions about scholarship
      fraud, with appropriate mechanisms for the transfer of comments
      received through such forms to the Department and the Commission.
        (5) Internet links to other sources of information on
      scholarship fraud, including Internet web sites of appropriate
      nongovernmental organizations, colleges and universities, and
      government agencies.
        (6) An Internet link to the Better Business Bureau in order to
      assist individuals in assessing the business practices of other
      persons and entities.
        (7) Information on means of communicating with the Federal
      Student Aid Information Center, including telephone and Internet
      contact information.

-SOURCE-
    (Pub. L. 106-420, Sec. 5, Nov. 1, 2000, 114 Stat. 1868.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of the College Scholarship Fraud
    Prevention Act of 2000, and not as part of title IV of the Higher
    Education Act of 1965 which comprises this subchapter.


-MISC1-
                                 FINDINGS                             
      Pub. L. 106-420, Sec. 2, Nov. 1, 2000, 114 Stat. 1867, provided
    that: "Congress makes the following findings:
        "(1) A substantial amount of fraud occurs in the offering of
      college education financial assistance services to consumers.
        "(2) Such fraud includes the following:
          "(A) Misrepresentations regarding the provision of sources
        from which consumers may obtain financial assistance (including
        scholarships, grants, loans, tuition, awards, and other
        assistance) for purposes of financing a college education.
          "(B) Misrepresentations regarding the provision of portfolios
        of such assistance tailored to the needs of specific consumers.
          "(C) Misrepresentations regarding the pre-selection of
        students as eligible to receive such assistance.
          "(D) Misrepresentations that such assistance will be provided
        to consumers who purchase specified services from specified
        entities.
          "(E) Misrepresentations regarding the business relationships
        between particular entities and entities that award or may
        award such assistance.
          "(F) Misrepresentations regarding refunds of processing fees
        if consumers are not provided specified amounts of such
        assistance, and other misrepresentations regarding refunds.
        "(3) In 1996, the Federal Trade Commission launched 'Project
      Scholarscam', a joint law enforcement and consumer education
      campaign directed at fraudulent purveyors of so-called
      'scholarship services'.
        "(4) Despite the efforts of the Federal Trade Commission,
      colleges and universities, and nongovernmental organizations, the
      continued lack of awareness about scholarship fraud permits a
      significant amount of fraudulent activity to occur."

-End-



-CITE-
    20 USC Sec. 1092e                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1092e. College access initiative

-STATUTE-
    (a) State-by-State information
      The Secretary shall direct each guaranty agency with which the
    Secretary has an agreement under section 1078(c) of this title to
    provide to the Secretary the information necessary for the
    development of Internet web links and access for students and
    families to a comprehensive listing of the postsecondary education
    opportunities, programs, publications, Internet web sites, and
    other services available in the States for which such agency serves
    as the designated guarantor.
    (b) Guaranty agency activities
      (1) Plan and activity required
        Each guaranty agency with which the Secretary has an agreement
      under section 1078(c) of this title shall develop a plan, and
      undertake the activity necessary, to gather the information
      required under subsection (a) and to make such information
      available to the public and to the Secretary in a form and manner
      as prescribed by the Secretary.
      (2) Activities
        Each guaranty agency shall undertake such activities as are
      necessary to promote access to postsecondary education for
      students through providing information on college planning,
      career preparation, and paying for college. The guaranty agency
      shall publicize such information and coordinate such activities
      with other entities that either provide or distribute such
      information in the States for which such guaranty agency serves
      as the designated guarantor.
      (3) Funding
        The activities required by this section may be funded from the
      guaranty agency's Operating Fund established pursuant to section
      1072b of this title and, to the extent funds remain, from
      earnings on the restricted account established pursuant to
      section 1072(h)(4) of this title.
      (4) Rule of construction
        Nothing in this subsection shall be construed to require a
      guaranty agency to duplicate any efforts under way on February 8,
      2006, that meet the requirements of this section.
    (c) Access to information
      (1) Secretary's responsibility
        The Secretary shall ensure the availability of the information
      provided, by the guaranty agencies in accordance with this
      section, to students, parents, and other interested individuals,
      through Internet web links or other methods prescribed by the
      Secretary.
      (2) Guaranty agency responsibility
        The guaranty agencies shall ensure that the information
      required by this section is available without charge in printed
      format for students and parents requesting such information.
      (3) Publicity
        Not later than 270 days after February 8, 2006, the Secretary
      and guaranty agencies shall publicize the availability of the
      information required by this section, with special emphasis on
      ensuring that populations that are traditionally underrepresented
      in postsecondary education are made aware of the availability of
      such information.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 485D, as added Pub. L. 109-171,
    title VIII, Sec. 8023, Feb. 8, 2006, 120 Stat. 179.)


-MISC1-
                              EFFECTIVE DATE                          
      Section effective July 1, 2006, except as otherwise provided, see
    section 8001(c) of Pub. L. 109-171, set out as an Effective Date of
    2006 Amendment note under section 1002 of this title.

-End-



-CITE-
    20 USC Sec. 1093                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1093. Distance education demonstration programs

-STATUTE-
    (a) Purpose
      It is the purpose of this section - 
        (1) to allow demonstration programs that are strictly monitored
      by the Department of Education to test the quality and viability
      of expanded distance education programs currently restricted
      under this chapter;
        (2) to provide for increased student access to higher education
      through distance education programs; and
        (3) to help determine - 
          (A) the most effective means of delivering quality education
        via distance education course offerings;
          (B) the specific statutory and regulatory requirements which
        should be altered to provide greater access to high quality
        distance education programs; and
          (C) the appropriate level of Federal assistance for students
        enrolled in distance education programs.
    (b) Demonstration programs authorized
      (1) In general
        In accordance with the provisions of subsection (d) of this
      section, the Secretary is authorized to select institutions of
      higher education, systems of such institutions, or consortia of
      such institutions for voluntary participation in a Distance
      Education Demonstration Program that provides participating
      institutions with the ability to offer distance education
      programs that do not meet all or a portion of the sections or
      regulations described in paragraph (2).
      (2) Waivers
        The Secretary is authorized to waive for any institution of
      higher education, system of institutions of higher education, or
      consortium participating in a Distance Education Demonstration
      Program, the requirements of section 1087ll(5) of this title as
      the section relates to computer costs, sections 1088(a) and
      1088(b) of this title as such sections relate to requirements for
      a minimum number of weeks of instruction, sections 1002(a)(3)(A),
      1002(a)(3)(B), and 1091(l)(1) of this title, or one or more of
      the regulations prescribed under this part or part E of this
      subchapter which inhibit the operation of quality distance
      education programs.
      (3) Eligible applicants
        (A) Eligible institutions
          Except as provided in subparagraphs (B), (C), and (D), only
        an institution of higher education that is eligible to
        participate in programs under this subchapter and part C of
        subchapter I of chapter 34 of title 42 shall be eligible to
        participate in the demonstration program authorized under this
        section.
        (B) Prohibition
          An institution of higher education described in section
        1002(a)(1)(C) of this title shall not be eligible to
        participate in the demonstration program authorized under this
        section.
        (C) Special rule
          Subject to subparagraph (B), an institution of higher
        education that meets the requirements of subsection (a) of
        section 1002 of this title, other than the requirement of
        paragraph (3)(A) or (3)(B) of such subsection, and that
        provides a 2-year or 4-year program of instruction for which
        the institution awards an associate or baccalaureate degree,
        shall be eligible to participate in the demonstration program
        authorized under this section.
        (D) Requirement
          Notwithstanding any other provision of this paragraph,
        Western Governors University shall be considered eligible to
        participate in the demonstration program authorized under this
        section. In addition to the waivers described in paragraph (2),
        the Secretary may waive the provisions of subchapter I of this
        chapter and this part and part G of this subchapter for such
        university that the Secretary determines to be appropriate
        because of the unique characteristics of such university. In
        carrying out the preceding sentence, the Secretary shall ensure
        that adequate program integrity and accountability measures
        apply to such university's participation in the demonstration
        program authorized under this section.
    (c) Application
      (1) In general
        Each institution, system, or consortium of institutions
      desiring to participate in a demonstration program under this
      section shall submit an application to the Secretary at such time
      and in such manner as the Secretary may require.
      (2) Contents
        Each application shall include - 
          (A) a description of the institution, system, or consortium's
        consultation with a recognized accrediting agency or
        association with respect to quality assurances for the distance
        education programs to be offered;
          (B) a description of the statutory and regulatory
        requirements described in subsection (b)(2) of this section or,
        if applicable, subsection (b)(3)(D) of this section for which a
        waiver is sought and the reasons for which the waiver is
        sought;
          (C) a description of the distance education programs to be
        offered;
          (D) a description of the students to whom distance education
        programs will be offered;
          (E) an assurance that the institution, system, or consortium
        will offer full cooperation with the ongoing evaluations of the
        demonstration program provided for in this section; and
          (F) such other information as the Secretary may require.
    (d) Selection
      (1) In general
        For the first year of the demonstration program authorized
      under this section, the Secretary is authorized to select for
      participation in the program not more than 15 institutions,
      systems of institutions, or consortia of institutions. For the
      third year of the demonstration program authorized under this
      section, the Secretary may select not more than 35 institutions,
      systems, or consortia, in addition to the institutions, systems,
      or consortia selected pursuant to the preceding sentence, to
      participate in the demonstration program if the Secretary
      determines that such expansion is warranted based on the
      evaluations conducted in accordance with subsections (f) and (g)
      of this section.
      (2) Considerations
        In selecting institutions to participate in the demonstration
      program in the first or succeeding years of the program, the
      Secretary shall take into account - 
          (A) the number and quality of applications received;
          (B) the Department's capacity to oversee and monitor each
        institution's participation;
          (C) an institution's - 
            (i) financial responsibility;
            (ii) administrative capability; and
            (iii) program or programs being offered via distance
          education; and

          (D) ensuring the participation of a diverse group of
        institutions with respect to size, mission, and geographic
        distribution.
    (e) Notification
      The Secretary shall make available to the public and to the
    Committee on Labor and Human Resources of the Senate and the
    Committee on Education and the Workforce of the House of
    Representatives a list of institutions, systems or consortia
    selected to participate in the demonstration program authorized by
    this section. Such notice shall include a listing of the specific
    statutory and regulatory requirements being waived for each
    institution, system or consortium and a description of the distance
    education courses to be offered.
    (f) Evaluations and reports
      (1) Evaluation
        The Secretary shall evaluate the demonstration programs
      authorized under this section on an annual basis. Such
      evaluations specifically shall review - 
          (A) the extent to which the institution, system or consortium
        has met the goals set forth in its application to the
        Secretary, including the measures of program quality assurance;
          (B) the number and types of students participating in the
        programs offered, including the progress of participating
        students toward recognized certificates or degrees and the
        extent to which participation in such programs increased;
          (C) issues related to student financial assistance for
        distance education;
          (D) effective technologies for delivering distance education
        course offerings; and
          (E) the extent to which statutory or regulatory requirements
        not waived under the demonstration program present difficulties
        for students or institutions.
      (2) Policy analysis
        The Secretary shall review current policies and identify those
      policies that present impediments to the development and use of
      distance education and other nontraditional methods of expanding
      access to education.
      (3) Reports
        (A) In general
          Within 18 months of the initiation of the demonstration
        program, the Secretary shall report to the Committee on Labor
        and Human Resources of the Senate and the Committee on
        Education and the Workforce of the House of Representatives
        with respect to - 
            (i) the evaluations of the demonstration programs
          authorized under this section; and
            (ii) any proposed statutory changes designed to enhance the
          use of distance education.
        (B) Additional reports
          The Secretary shall provide additional reports to the
        Committee on Labor and Human Resources of the Senate and the
        Committee on Education and the Workforce of the House of
        Representatives on an annual basis regarding - 
            (i) the demonstration programs authorized under this
          section; and
            (ii) the number and types of students receiving assistance
          under this subchapter and part C of subchapter I of chapter
          34 of title 42 for instruction leading to a recognized
          certificate, as provided for in section 1091(l)(1) of this
          title, including the progress of such students toward
          recognized certificates and the degree to which participation
          in such programs leading to such certificates increased.
    (g) Oversight
      In conducting the demonstration program authorized under this
    section, the Secretary shall, on a continuing basis - 
        (1) assure compliance of institutions, systems or consortia
      with the requirements of this subchapter and part C of subchapter
      I of chapter 34 of title 42 (other than the sections and
      regulations that are waived under subsections (b)(2) and
      (b)(3)(D) of this section);
        (2) provide technical assistance;
        (3) monitor fluctuations in the student population enrolled in
      the participating institutions, systems or consortia; and
        (4) consult with appropriate accrediting agencies or
      associations and appropriate State regulatory authorities.
    (h) "Distance education" defined
      For the purpose of this section, the term "distance education"
    means an educational process that is characterized by the
    separation, in time or place, between instructor and student. Such
    term may include courses offered principally through the use of - 
        (1) television, audio, or computer transmission, such as open
      broadcast, closed circuit, cable, microwave, or satellite
      transmission;
        (2) audio or computer conferencing;
        (3) video cassettes or discs; or
        (4) correspondence.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 486, as added Pub. L. 99-498, title
    IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1487; amended Pub. L. 102-
    325, title IV, Sec. 489, July 23, 1992, 106 Stat. 624; Pub. L. 105-
    244, title IV, Sec. 488, Oct. 7, 1998, 112 Stat. 1746.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (a)(1), was in the original
    "this Act", meaning Pub. L. 89-329, as amended, known as the Higher
    Education Act of 1965. For complete classification of this Act to
    the Code, see Short Title note set out under section 1001 of this
    title and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1093, Pub. L. 89-329, title IV, Sec. 486, as
    added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.
    1450, related to training in financial aid and student support
    services, prior to the general revision of this part by Pub. L. 99-
    498.

                                AMENDMENTS                            
      1998 - Pub. L. 105-244 amended section catchline and text
    generally. Prior to amendment, section authorized Secretary to make
    grants to nonprofit private organizations to provide training for
    student financial aid administrators and TRIO personnel.
      1992 - Pub. L. 102-325 struck out "and student support" after
    "aid" in section catchline and amended text generally, substituting
    present provisions for former subsec. (a) relating to program
    authority, subsec. (b) relating to use of funds, and subsec. (c)
    relating to authorization of appropriations.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     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.

-End-



-CITE-
    20 USC Sec. 1094                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1094. Program participation agreements

-STATUTE-
    (a) Required for programs of assistance; contents
      In order to be an eligible institution for the purposes of any
    program authorized under this subchapter and part C of subchapter I
    of chapter 34 of title 42, an institution must be an institution of
    higher education or an eligible institution (as that term is
    defined for the purpose of that program) and shall, except with
    respect to a program under subpart 4 of part A of this subchapter,
    enter into a program participation agreement with the Secretary.
    The agreement shall condition the initial and continuing
    eligibility of an institution to participate in a program upon
    compliance with the following requirements:
        (1) The institution will use funds received by it for any
      program under this subchapter and part C of subchapter I of
      chapter 34 of title 42 and any interest or other earnings thereon
      solely for the purpose specified in and in accordance with the
      provision of that program.
        (2) The institution shall not charge any student a fee for
      processing or handling any application, form, or data required to
      determine the student's eligibility for assistance under this
      subchapter and part C of subchapter I of chapter 34 of title 42
      or the amount of such assistance.
        (3) The institution will establish and maintain such
      administrative and fiscal procedures and records as may be
      necessary to ensure proper and efficient administration of funds
      received from the Secretary or from students under this
      subchapter and part C of subchapter I of chapter 34 of title 42,
      together with assurances that the institution will provide, upon
      request and in a timely fashion, information relating to the
      administrative capability and financial responsibility of the
      institution to - 
          (A) the Secretary;
          (B) the appropriate guaranty agency; and
          (C) the appropriate accrediting agency or association.

        (4) The institution will comply with the provisions of
      subsection (c) of this section and the regulations prescribed
      under that subsection, relating to fiscal eligibility.
        (5) The institution will submit reports to the Secretary and,
      in the case of an institution participating in a program under
      part B or part D of this subchapter, to holders of loans made to
      the institution's students under such parts at such times and
      containing such information as the Secretary may reasonably
      require to carry out the purpose of this subchapter and part C of
      subchapter I of chapter 34 of title 42.
        (6) The institution will not provide any student with any
      statement or certification to any lender under part B of this
      subchapter that qualifies the student for a loan or loans in
      excess of the amount that student is eligible to borrow in
      accordance with sections 1075(a), 1078(a)(2), and 1078(b)(1)(A)
      and (B) of this title.
        (7) The institution will comply with the requirements of
      section 1092 of this title.
        (8) In the case of an institution that advertises job placement
      rates as a means of attracting students to enroll in the
      institution, the institution will make available to prospective
      students, at or before the time of application (A) the most
      recent available data concerning employment statistics,
      graduation statistics, and any other information necessary to
      substantiate the truthfulness of the advertisements, and (B)
      relevant State licensing requirements of the State in which such
      institution is located for any job for which the course of
      instruction is designed to prepare such prospective students.
        (9) In the case of an institution participating in a program
      under part B or C of this subchapter, the institution will inform
      all eligible borrowers enrolled in the institution about the
      availability and eligibility of such borrowers for State grant
      assistance from the State in which the institution is located,
      and will inform such borrowers from another State of the source
      for further information concerning such assistance from that
      State.
        (10) The institution certifies that it has in operation a drug
      abuse prevention program that is determined by the institution to
      be accessible to any officer, employee, or student at the
      institution.
        (11) In the case of any institution whose students receive
      financial assistance pursuant to section 1091(d) of this title,
      the institution will make available to such students a program
      proven successful in assisting students in obtaining a
      certificate of high school equivalency.
        (12) The institution certifies that - 
          (A) the institution has established a campus security policy;
        and
          (B) the institution has complied with the disclosure
        requirements of section 1092(f) of this title.

        (13) The institution will not deny any form of Federal
      financial aid to any student who meets the eligibility
      requirements of this subchapter and part C of subchapter I of
      chapter 34 of title 42 on the grounds that the student is
      participating in a program of study abroad approved for credit by
      the institution.
        (14)(A) The institution, in order to participate as an eligible
      institution under part B or C of this subchapter, will develop a
      Default Management Plan for approval by the Secretary as part of
      its initial application for certification as an eligible
      institution and will implement such Plan for two years
      thereafter.
        (B) Any institution of higher education which changes ownership
      and any eligible institution which changes its status as a parent
      or subordinate institution shall, in order to participate as an
      eligible institution under part B or C of this subchapter,
      develop a Default Management Plan for approval by the Secretary
      and implement such Plan for two years after its change of
      ownership or status.
        (C) This paragraph shall not apply in the case of an
      institution in which (i) neither the parent nor the subordinate
      institution has a cohort default rate in excess of 10 percent,
      and (ii) the new owner of such parent or subordinate institution
      does not, and has not, owned any other institution with a cohort
      default rate in excess of 10 percent.
        (15) The institution acknowledges the authority of the
      Secretary, guaranty agencies, lenders, accrediting agencies, the
      Secretary of Veterans Affairs, and the State agencies under
      subpart 1 of part G of this subchapter to share with each other
      any information pertaining to the institution's eligibility to
      participate in programs under this subchapter and part C of
      subchapter I of chapter 34 of title 42 or any information on
      fraud and abuse.
        (16)(A) The institution will not knowingly employ an individual
      in a capacity that involves the administration of programs under
      this subchapter and part C of subchapter I of chapter 34 of title
      42, or the receipt of program funds under this subchapter and
      part C of subchapter I of chapter 34 of title 42, who has been
      convicted of, or has pled nolo contendere or guilty to, a crime
      involving the acquisition, use, or expenditure of funds under
      this subchapter and part C of subchapter I of chapter 34 of title
      42, or has been judicially determined to have committed fraud
      involving funds under this subchapter and part C of subchapter I
      of chapter 34 of title 42 or contract with an institution or
      third party servicer that has been terminated under section 1082
      of this title involving the acquisition, use, or expenditure of
      funds under this subchapter and part C of subchapter I of chapter
      34 of title 42, or who has been judicially determined to have
      committed fraud involving funds under this subchapter and part C
      of subchapter I of chapter 34 of title 42.
        (B) The institution will not knowingly contract with or employ
      any individual, agency, or organization that has been, or whose
      officers or employees have been - 
          (i) convicted of, or pled nolo contendere or guilty to, a
        crime involving the acquisition, use, or expenditure of funds
        under this subchapter and part C of subchapter I of chapter 34
        of title 42; or
          (ii) judicially determined to have committed fraud involving
        funds under this subchapter and part C of subchapter I of
        chapter 34 of title 42.

        (17) The institution will complete surveys conducted as a part
      of the Integrated Postsecondary Education Data System (IPEDS) or
      any other Federal postsecondary institution data collection
      effort, as designated by the Secretary, in a timely manner and to
      the satisfaction of the Secretary.
        (18) The institution will meet the requirements established
      pursuant to section 1092(g) of this title.
        (19) The institution will not impose any penalty, including the
      assessment of late fees, the denial of access to classes,
      libraries, or other institutional facilities, or the requirement
      that the student borrow additional funds, on any student because
      of the student's inability to meet his or her financial
      obligations to the institution as a result of the delayed
      disbursement of the proceeds of a loan made under this subchapter
      and part C of subchapter I of chapter 34 of title 42 due to
      compliance with the provisions of this subchapter and part C of
      subchapter I of chapter 34 of title 42, or delays attributable to
      the institution.
        (20) The institution will not provide any commission, bonus, or
      other incentive payment based directly or indirectly on success
      in securing enrollments or financial aid to any persons or
      entities engaged in any student recruiting or admission
      activities or in making decisions regarding the award of student
      financial assistance, except that this paragraph shall not apply
      to the recruitment of foreign students residing in foreign
      countries who are not eligible to receive Federal student
      assistance.
        (21) The institution will meet the requirements established by
      the Secretary and accrediting agencies or associations, and will
      provide evidence to the Secretary that the institution has the
      authority to operate within a State.
        (22) The institution will comply with the refund policy
      established pursuant to section 1091b of this title.
        (23)(A) The institution, if located in a State to which section
      1973gg-2(b) (!1) of title 42 does not apply, will make a good
      faith effort to distribute a mail voter registration form,
      requested and received from the State, to each student enrolled
      in a degree or certificate program and physically in attendance
      at the institution, and to make such forms widely available to
      students at the institution.

        (B) The institution shall request the forms from the State 120
      days prior to the deadline for registering to vote within the
      State. If an institution has not received a sufficient quantity
      of forms to fulfill this section from the State within 60 days
      prior to the deadline for registering to vote in the State, the
      institution shall not be held liable for not meeting the
      requirements of this section during that election year.
        (C) This paragraph shall apply to general and special elections
      for Federal office, as defined in section 431(3) of title 2, and
      to the elections for Governor or other chief executive within
      such State).(!2)

    (b) Hearings
      (1) An institution that has received written notice of a final
    audit or program review determination and that desires to have such
    determination reviewed by the Secretary shall submit to the
    Secretary a written request for review not later than 45 days after
    receipt of notification of the final audit or program review
    determination.
      (2) The Secretary shall, upon receipt of written notice under
    paragraph (1), arrange for a hearing and notify the institution
    within 30 days of receipt of such notice the date, time, and place
    of such hearing. Such hearing shall take place not later than 120
    days from the date upon which the Secretary notifies the
    institution.
    (c) Audits; financial responsibility; enforcement of standards
      (1) Notwithstanding any other provisions of this subchapter and
    part C of subchapter I of chapter 34 of title 42, the Secretary
    shall prescribe such regulations as may be necessary to provide for
    - 
        (A)(i) except as provided in clauses (ii) and (iii), a
      financial audit of an eligible institution with regard to the
      financial condition of the institution in its entirety, and a
      compliance audit of such institution with regard to any funds
      obtained by it under this subchapter and part C of subchapter I
      of chapter 34 of title 42 or obtained from a student or a parent
      who has a loan insured or guaranteed by the Secretary under this
      subchapter and part C of subchapter I of chapter 34 of title 42,
      on at least an annual basis and covering the period since the
      most recent audit, conducted by a qualified, independent
      organization or person in accordance with standards established
      by the Comptroller General for the audit of governmental
      organizations, programs, and functions, and as prescribed in
      regulations of the Secretary, the results of which shall be
      submitted to the Secretary and shall be available to cognizant
      guaranty agencies, eligible lenders, State agencies, and the
      appropriate State agency notifying the Secretary under subpart 1
      of part G of this subchapter;
        (ii) with regard to an eligible institution which is audited
      under chapter 75 of title 31, deeming such audit to satisfy the
      requirements of clause (i) for the period covered by such audit;
      or
        (iii) at the discretion of the Secretary, with regard to an
      eligible institution (other than an eligible institution
      described in section 1002(a)(1)(C) of this title) that has
      obtained less than $200,000 in funds under this subchapter and
      part C of subchapter I of chapter 34 of title 42 during each of
      the 2 award years that precede the audit period and submits a
      letter of credit payable to the Secretary equal to not less than 
      1/2  of the annual potential liabilities of such institution as
      determined by the Secretary, deeming an audit conducted every 3
      years to satisfy the requirements of clause (i), except for the
      award year immediately preceding renewal of the institution's
      eligibility under section 1099c(g) of this title;
        (B) in matters not governed by specific program provisions, the
      establishment of reasonable standards of financial responsibility
      and appropriate institutional capability for the administration
      by an eligible institution of a program of student financial aid
      under this subchapter and part C of subchapter I of chapter 34 of
      title 42, including any matter the Secretary deems necessary to
      the sound administration of the financial aid programs, such as
      the pertinent actions of any owner, shareholder, or person
      exercising control over an eligible institution;
        (C)(i) except as provided in clause (ii), a compliance audit of
      a third party servicer (other than with respect to the servicer's
      functions as a lender if such functions are otherwise audited
      under this part and such audits meet the requirements of this
      clause), with regard to any contract with an eligible
      institution, guaranty agency, or lender for administering or
      servicing any aspect of the student assistance programs under
      this subchapter and part C of subchapter I of chapter 34 of title
      42, at least once every year and covering the period since the
      most recent audit, conducted by a qualified, independent
      organization or person in accordance with standards established
      by the Comptroller General for the audit of governmental
      organizations, programs, and functions, and as prescribed in
      regulations of the Secretary, the results of which shall be
      submitted to the Secretary; or
        (ii) with regard to a third party servicer that is audited
      under chapter 75 of title 31, such audit shall be deemed to
      satisfy the requirements of clause (i) for the period covered by
      such audit;
        (D)(i) a compliance audit of a secondary market with regard to
      its transactions involving, and its servicing and collection of,
      loans made under this subchapter and part C of subchapter I of
      chapter 34 of title 42, at least once a year and covering the
      period since the most recent audit, conducted by a qualified,
      independent organization or person in accordance with standards
      established by the Comptroller General for the audit of
      governmental organizations, programs, and functions, and as
      prescribed in regulations of the Secretary, the results of which
      shall be submitted to the Secretary; or
        (ii) with regard to a secondary market that is audited under
      chapter 75 of title 31, such audit shall be deemed to satisfy the
      requirements of clause (i) for the period covered by the audit;
        (E) the establishment, by each eligible institution under part
      B of this subchapter responsible for furnishing to the lender the
      statement required by section 1078(a)(2)(A)(i) of this title, of
      policies and procedures by which the latest known address and
      enrollment status of any student who has had a loan insured under
      this part and who has either formally terminated his enrollment,
      or failed to re-enroll on at least a half-time basis, at such
      institution, shall be furnished either to the holder (or if
      unknown, the insurer) of the note, not later than 60 days after
      such termination or failure to re-enroll;
        (F) the limitation, suspension, or termination of the
      participation in any program under this subchapter and part C of
      subchapter I of chapter 34 of title 42 of an eligible
      institution, or the imposition of a civil penalty under paragraph
      (2)(B) whenever the Secretary has determined, after reasonable
      notice and opportunity for hearing, that such institution has
      violated or failed to carry out any provision of this subchapter
      and part C of subchapter I of chapter 34 of title 42, any
      regulation prescribed under this subchapter and part C of
      subchapter I of chapter 34 of title 42, or any applicable special
      arrangement, agreement, or limitation, except that no period of
      suspension under this section shall exceed 60 days unless the
      institution and the Secretary agree to an extension or unless
      limitation or termination proceedings are initiated by the
      Secretary within that period of time;
        (G) an emergency action against an institution, under which the
      Secretary shall, effective on the date on which a notice and
      statement of the basis of the action is mailed to the institution
      (by registered mail, return receipt requested), withhold funds
      from the institution or its students and withdraw the
      institution's authority to obligate funds under any program under
      this subchapter and part C of subchapter I of chapter 34 of title
      42, if the Secretary - 
          (i) receives information, determined by the Secretary to be
        reliable, that the institution is violating any provision of
        this subchapter and part C of subchapter I of chapter 34 of
        title 42, any regulation prescribed under this subchapter and
        part C of subchapter I of chapter 34 of title 42, or any
        applicable special arrangement, agreement, or limitation,
          (ii) determines that immediate action is necessary to prevent
        misuse of Federal funds, and
          (iii) determines that the likelihood of loss outweighs the
        importance of the procedures prescribed under subparagraph (D)
        for limitation, suspension, or termination,

      except that an emergency action shall not exceed 30 days unless
      limitation, suspension, or termination proceedings are initiated
      by the Secretary against the institution within that period of
      time, and except that the Secretary shall provide the institution
      an opportunity to show cause, if it so requests, that the
      emergency action is unwarranted;
        (H) the limitation, suspension, or termination of the
      eligibility of a third party servicer to contract with any
      institution to administer any aspect of an institution's student
      assistance program under this subchapter and part C of subchapter
      I of chapter 34 of title 42, or the imposition of a civil penalty
      under paragraph (2)(B), whenever the Secretary has determined,
      after reasonable notice and opportunity for a hearing, that such
      organization, acting on behalf of an institution, has violated or
      failed to carry out any provision of this subchapter and part C
      of subchapter I of chapter 34 of title 42, any regulation
      prescribed under this subchapter and part C of subchapter I of
      chapter 34 of title 42, or any applicable special arrangement,
      agreement, or limitation, except that no period of suspension
      under this subparagraph shall exceed 60 days unless the
      organization and the Secretary agree to an extension, or unless
      limitation or termination proceedings are initiated by the
      Secretary against the individual or organization within that
      period of time; and
        (I) an emergency action against a third party servicer that has
      contracted with an institution to administer any aspect of the
      institution's student assistance program under this subchapter
      and part C of subchapter I of chapter 34 of title 42, under which
      the Secretary shall, effective on the date on which a notice and
      statement of the basis of the action is mailed to such individual
      or organization (by registered mail, return receipt requested),
      withhold funds from the individual or organization and withdraw
      the individual or organization's authority to act on behalf of an
      institution under any program under this subchapter and part C of
      subchapter I of chapter 34 of title 42, if the Secretary - 
          (i) receives information, determined by the Secretary to be
        reliable, that the individual or organization, acting on behalf
        of an institution, is violating any provision of this
        subchapter and part C of subchapter I of chapter 34 of title
        42, any regulation prescribed under this subchapter and part C
        of subchapter I of chapter 34 of title 42, or any applicable
        special arrangement, agreement, or limitation,
          (ii) determines that immediate action is necessary to prevent
        misuse of Federal funds, and
          (iii) determines that the likelihood of loss outweighs the
        importance of the procedures prescribed under subparagraph (F),
        for limitation, suspension, or termination,

      except that an emergency action shall not exceed 30 days unless
      the limitation, suspension, or termination proceedings are
      initiated by the Secretary against the individual or organization
      within that period of time, and except that the Secretary shall
      provide the individual or organization an opportunity to show
      cause, if it so requests, that the emergency action is
      unwarranted.

      (2) If an individual who, or entity that, exercises substantial
    control, as determined by the Secretary in accordance with the
    definition of substantial control in subpart 3 of part G of this
    subchapter, over one or more institutions participating in any
    program under this subchapter and part C of subchapter I of chapter
    34 of title 42, or, for purposes of paragraphs (1)(H) and (I), over
    one or more organizations that contract with an institution to
    administer any aspect of the institution's student assistance
    program under this subchapter and part C of subchapter I of chapter
    34 of title 42, is determined to have committed one or more
    violations of the requirements of any program under this subchapter
    and part C of subchapter I of chapter 34 of title 42, or has been
    suspended or debarred in accordance with the regulations of the
    Secretary, the Secretary may use such determination, suspension, or
    debarment as the basis for imposing an emergency action on, or
    limiting, suspending, or terminating, in a single proceeding, the
    participation of any or all institutions under the substantial
    control of that individual or entity.
      (3)(A) Upon determination, after reasonable notice and
    opportunity for a hearing, that an eligible institution has engaged
    in substantial misrepresentation of the nature of its educational
    program, its financial charges, or the employability of its
    graduates, the Secretary may suspend or terminate the eligibility
    status for any or all programs under this subchapter and part C of
    subchapter I of chapter 34 of title 42 of any otherwise eligible
    institution, in accordance with procedures specified in paragraph
    (1)(D) of this subsection, until the Secretary finds that such
    practices have been corrected.
      (B)(i) Upon determination, after reasonable notice and
    opportunity for a hearing, that an eligible institution - 
        (I) has violated or failed to carry out any provision of this
      subchapter and part C of subchapter I of chapter 34 of title 42
      or any regulation prescribed under this subchapter and part C of
      subchapter I of chapter 34 of title 42; or
        (II) has engaged in substantial misrepresentation of the nature
      of its educational program, its financial charges, and the
      employability of its graduates,

    the Secretary may impose a civil penalty upon such institution of
    not to exceed $25,000 for each violation or misrepresentation.
      (ii) Any civil penalty may be compromised by the Secretary. In
    determining the amount of such penalty, or the amount agreed upon
    in compromise, the appropriateness of the penalty to the size of
    the institution of higher education subject to the determination,
    and the gravity of the violation, failure, or misrepresentation
    shall be considered. The amount of such penalty, when finally
    determined, or the amount agreed upon in compromise, may be
    deducted from any sums owing by the United States to the
    institution charged.
      (4) The Secretary shall publish a list of State agencies which
    the Secretary determines to be reliable authority as to the quality
    of public postsecondary vocational education in their respective
    States for the purpose of determining eligibility for all Federal
    student assistance programs.
      (5) The Secretary shall make readily available to appropriate
    guaranty agencies, eligible lenders, State agencies notifying the
    Secretary under subpart 1 of part G of this subchapter, and
    accrediting agencies or associations the results of the audits of
    eligible institutions conducted pursuant to paragraph (1)(A).
      (6) The Secretary is authorized to provide any information
    collected as a result of audits conducted under this section,
    together with audit information collected by guaranty agencies, to
    any Federal or State agency having responsibilities with respect to
    student financial assistance, including those referred to in
    subsection (a)(15) of this section.
      (7) Effective with respect to any audit conducted under this
    subsection after December 31, 1988, if, in the course of conducting
    any such audit, the personnel of the Department of Education
    discover, or are informed of, grants or other assistance provided
    by an institution in accordance with this subchapter and part C of
    subchapter I of chapter 34 of title 42 for which the institution
    has not received funds appropriated under this subchapter and part
    C of subchapter I of chapter 34 of title 42 (in the amount
    necessary to provide such assistance), including funds for which
    reimbursement was not requested prior to such discovery or
    information, such institution shall be permitted to offset that
    amount against any sums determined to be owed by the institution
    pursuant to such audit, or to receive reimbursement for that amount
    (if the institution does not owe any such sums).
    (d) "Eligible institution" defined
      For the purpose of this section, the term "eligible institution"
    means any such institution described in section 1002 of this title.
    (e) Construction
      Nothing in the amendments made by the Higher Education Amendments
    of 1992 shall be construed to prohibit an institution from
    recording, at the cost of the institution, a hearing referred to in
    subsection (b)(2), subsection (c)(1)(D), or subparagraph (A) or
    (B)(i) of subsection (c)(2), of this section to create a record of
    the hearing, except the unavailability of a recording shall not
    serve to delay the completion of the proceeding. The Secretary
    shall allow the institution to use any reasonable means, including
    stenographers, of recording the hearing.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 487, as added Pub. L. 99-498, title
    IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1488; amended Pub. L. 101-
    239, title II, Secs. 2003(c)(2), 2006(c), Dec. 19, 1989, 103 Stat.
    2114, 2118; Pub. L. 101-542, title II, Sec. 205, Nov. 8, 1990, 104
    Stat. 2387; Pub. L. 102-26, Sec. 2(c)(3), Apr. 9, 1991, 105 Stat.
    124; Pub. L. 102-325, title IV, Sec. 490, July 23, 1992, 106 Stat.
    625; Pub. L. 103-208, Sec. 2(h)(42), (43), Dec. 20, 1993, 107 Stat.
    2478; Pub. L. 105-244, title I, Sec. 102(b)(4), title IV, Sec.
    489(a), (b)(1), (c), Oct. 7, 1998, 112 Stat. 1622, 1750, 1751; Pub.
    L. 106-113, div. B, Sec. 1000(a)(4) [title III, Sec. 314], Nov. 29,
    1999, 113 Stat. 1535, 1501A-266.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1973gg-2(b) of title 42, referred to in subsec.
    (a)(23)(A), was in the original a reference to section 4(b) of the
    National Voter Registration Act (42 U.S.C. 1973gg-2(b)), and has
    been translated as if it referred to section 4(b) of the National
    Voter Registration Act of 1993, Pub. L. 103-31, to reflect the
    probable intent of Congress.
      The Higher Education Amendments of 1992, referred to in subsec.
    (e), is Pub. L. 102-325, July 23, 1992, 106 Stat. 448. For complete
    classification of this Act to the Code, see Short Title of 1992
    Amendment note set out under section 1001 of this title and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1094, Pub. L. 89-329, title IV, Sec. 487, as
    added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.
    1451; amended Pub. L. 99-272, title XVI, Sec. 16034, Apr. 7, 1986,
    100 Stat. 356, related to program participation agreements, prior
    to the general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1999 - Subsec. (a)(23)(C). Pub. L. 106-113 amended subpar. (C)
    generally. Prior to amendment, subpar. (C) read as follows: "This
    paragraph shall apply to elections as defined in section 431(1) of
    title 2, and includes the election for Governor or other chief
    executive within such State)."
      1998 - Subsec. (a)(3)(B) to (D). Pub. L. 105-244, Sec. 489(a)(1),
    redesignated subpars. (C) and (D) as (B) and (C), respectively, and
    struck out former subpar. (B) which read as follows: "the
    appropriate State review entity designated under subpart 1 of part
    G of this subchapter;".
      Subsec. (a)(4). Pub. L. 105-244, Sec. 489(a)(2), substituted
    "subsection (c)" for "subsection (b)".
      Subsec. (a)(9). Pub. L. 105-244, Sec. 489(a)(3), substituted
    "part B or C" for "part B".
      Subsec. (a)(14)(A), (B). Pub. L. 105-244, Sec. 489(a)(4)(A), (B),
    substituted "part B or C" for "part B".
      Subsec. (a)(14)(C). Pub. L. 105-244, Sec. 489(a)(4)(C), added
    subpar. (C).
      Subsec. (a)(15). Pub. L. 105-244, Sec. 489(a)(5), substituted
    "the State agencies" for "State review entities".
      Subsec. (a)(18). Pub. L. 105-244, Sec. 489(a)(6), amended par.
    (18) generally. Prior to amendment, par. (18) required institutions
    to cause an annual compilation to be prepared of revenues and
    expenses relating to men's and women's sports.
      Subsec. (a)(21). Pub. L. 105-244, Sec. 489(a)(7), amended par.
    (21) generally. Prior to amendment, par. (21) read as follows: "The
    institution will meet the requirements established by the
    Secretary, State postsecondary review entities, and accrediting
    agencies pursuant to part G of this subchapter."
      Subsec. (a)(23). Pub. L. 105-244, Sec. 489(b)(1), added par.
    (23).
      Subsec. (c)(1)(A)(i). Pub. L. 105-244, Sec. 489(c)(1)(A),
    substituted "clauses (ii) and (iii)" for "clause (ii)" and
    "appropriate State agency notifying the Secretary under" for "State
    review entities referred to in" and struck out "or" after
    semicolon.
      Subsec. (c)(1)(A)(iii). Pub. L. 105-244, Sec. 489(c)(1)(B), (C),
    added cl. (iii).
      Subsec. (c)(4). Pub. L. 105-244, Sec. 489(c)(2), struck out ",
    after consultation with each State review entity designated under
    subpart 1 of part G of this subchapter," after "shall publish".
      Subsec. (c)(5). Pub. L. 105-244, Sec. 489(c)(3), substituted
    "State agencies notifying the Secretary" for "State review entities
    designated".
      Subsec. (d). Pub. L. 105-244, Sec. 102(b)(4), substituted
    "section 1002" for "section 1088".
      1993 - Subsec. (a)(2). Pub. L. 103-208, Sec. 2(h)(42), struck out
    ", or for completing or handling the Federal Student Assistance
    Report" after "amount of such assistance".
      Subsec. (c)(1)(F). Pub. L. 103-208, Sec. 2(h)(43), substituted
    "participation in any program under this subchapter and part C of
    subchapter I of chapter 34 of title 42 of an eligible institution,"
    for "eligibility for any program under this subchapter and part C
    of subchapter I of chapter 34 of title 42 of any otherwise eligible
    institution,".
      1992 - Subsec. (a). Pub. L. 102-325, Sec. 490(f)(1), substituted
    "subpart 4" for "subpart 3".
      Subsec. (a)(2). Pub. L. 102-325, Sec. 490(f)(2), struck out
    "provided for in section 1090(e) of this title" after "Report".
      Subsec. (a)(3). Pub. L. 102-325, Sec. 490(a)(1), inserted before
    period at end ", together with assurances that the institution will
    provide, upon request and in a timely fashion, information relating
    to the administrative capability and financial responsibility of
    the institution to - " and added subpars. (A) to (D).
      Subsec. (a)(8). Pub. L. 102-325, Sec. 490(a)(2), substituted
    "application (A)" for "application," inserted ", and" after
    "advertisements", and added subpar. (B).
      Subsec. (a)(13) to (22). Pub. L. 102-325, Sec. 490(a)(3), added
    pars. (13) to (22).
      Subsec. (b)(2). Pub. L. 102-325, Sec. 490(b)(1), struck out "on
    the record" after "for a hearing".
      Subsec. (c)(1). Pub. L. 102-325, Sec. 490(b)(2)(A), substituted
    "shall" for "is authorized to" in introductory provisions.
      Subsec. (c)(1)(A)(i). Pub. L. 102-325, Sec. 490(c), substituted
    "a financial audit of an eligible institution with regard to the
    financial condition of the institution in its entirety, and a
    compliance audit of such institution" for "a financial and
    compliance audit of an eligible institution," and "on at least an
    annual basis" for "at least once every 2 years" and inserted "and
    shall be available to cognizant guaranty agencies, eligible
    lenders, State agencies, and the State review entities referred to
    in subpart 1 of part G of this subchapter" after "submitted to the
    Secretary".
      Subsec. (c)(1)(B). Pub. L. 102-325, Sec. 490(d)(1), inserted
    before semicolon at end ", including any matter the Secretary deems
    necessary to the sound administration of the financial aid
    programs, such as the pertinent actions of any owner, shareholder,
    or person exercising control over an eligible institution".
      Subsec. (c)(1)(C). Pub. L. 102-325, Sec. 490(d)(3), added subpar.
    (C). Former subpar. (C) redesignated (E).
      Subsec. (c)(1)(D). Pub. L. 102-325, Sec. 490(d)(3), added subpar.
    (D). Former subpar. (D) redesignated (F).
      Pub. L. 102-325, Sec. 490(b)(2)(B), struck out "on the record"
    after "opportunity for hearing".
      Subsec. (c)(1)(E). Pub. L. 102-325, Sec. 490(d)(2), redesignated
    subpar. (C) as (E). Former subpar. (E) redesignated (G).
      Subsec. (c)(1)(F). Pub. L. 102-325, Sec. 490(d)(2), redesignated
    subpar. (D) as (F). Former subpar. (F) redesignated (H).
      Pub. L. 102-325, Sec. 490(b)(2)(C), struck out "on the record"
    after "opportunity for a hearing".
      Subsec. (c)(1)(G). Pub. L. 102-325, Sec. 490(d)(2), redesignated
    subpar. (E) as (G). Former subpar. (G) redesignated (I).
      Subsec. (c)(1)(H). Pub. L. 102-325, Sec. 490(d)(2), (4),
    redesignated subpar. (F) as (H) and substituted "a third party
    servicer" for "an individual or an organization".
      Subsec. (c)(1)(I). Pub. L. 102-325, Sec. 490(d)(2), (5),
    redesignated subpar. (G) as (I) and substituted "a third party
    servicer" for "an individual or an organization".
      Subsec. (c)(2). Pub. L. 102-325, Sec. 490(d)(8), added par. (2).
    Former par. (2) redesignated (3).
      Pub. L. 102-325, Sec. 490(b)(2)(D), struck out "on the record"
    after "opportunity for a hearing" in subpars. (A) and (B)(i).
      Subsec. (c)(3). Pub. L. 102-325, Sec. 490(d)(7), redesignated
    par. (2) as (3). Former par. (3) redesignated (4).
      Pub. L. 102-325, Sec. 490(d)(6), inserted ", after consultation
    with each State review entity designated under subpart 1 of part G
    of this subchapter," after "shall publish".
      Subsec. (c)(4). Pub. L. 102-325, Sec. 490(d)(7), redesignated
    par. (3) as (4).
      Subsec. (c)(5) to (7). Pub. L. 102-325, Sec. 490(d)(9), added
    pars. (5) to (7).
      Subsec. (d). Pub. L. 102-325, Sec. 490(f)(3), substituted
    "section 1088" for "section 1085(a)".
      Subsec. (e). Pub. L. 102-325, Sec. 490(e), added subsec. (e).
      1991 - Subsec. (a)(11). Pub. L. 102-26 substituted "whose
    students receive financial assistance pursuant to section 1091(d)
    of this title," for "which admits students on the basis of their
    ability to benefit from the education or training provided by such
    institution (as determined under section 1091(d) of this title),".
      1990 - Subsec. (a)(12). Pub. L. 101-542 added par. (12).
      1989 - Subsec. (a)(11). Pub. L. 101-239, Sec. 2003(c)(2), added
    par. (11).
      Subsec. (c)(1)(D). Pub. L. 101-239, Sec. 2006(c)(2), substituted
    ", any regulation" for "or any regulation" and inserted "or any
    applicable special arrangement, agreement, or limitation,".
      Subsec. (c)(1)(E) to (G). Pub. L. 101-239, Sec. 2006(c)(3), added
    subpars. (E) to (G).

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

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1991 AMENDMENT                 
      Amendment by Pub. L. 102-26 applicable to any grant, loan, or
    work assistance to cover the cost of instruction for periods of
    enrollment beginning on or after July 1, 1991, see section 2(d)(1)
    of Pub. L. 102-26, set out as a note under section 1085 of this
    title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Section 2003(c)(3) of Pub. L. 101-239 provided that: "The
    amendments made by this subsection [amending this section and
    section 1078-1 of this title] shall apply with respect to periods
    of enrollment beginning on or after January 1, 1990."

                              EFFECTIVE DATE                          
      Section effective Oct. 17, 1986, except as otherwise provided,
    see section 2 of Pub. L. 99-498, set out as a note under section
    1001 of this title.
      Subsec. (a)(10) of this section applicable only to periods of
    enrollment beginning on or after July 1, 1987, see section 407(b)
    of Pub. L. 99-498, set out as a note under section 1091 of this
    title.

                           REGULATION PROHIBITED                       
      Pub. L. 105-244, title IV, Sec. 489(b)(2), Oct. 7, 1998, 112
    Stat. 1751, provided that: "No officer of the executive branch is
    authorized to instruct the institution in the manner in which the
    amendment made by this subsection [amending this section] is
    carried out."

-FOOTNOTE-
    (!1) See References in Text note below.

               

    (!2) So in original. The closing parenthesis probably should not
         appear.


-End-



-CITE-
    20 USC Sec. 1094a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1094a. Regulatory relief and improvement

-STATUTE-
    (a) Quality Assurance Program
      (1) In general
        The Secretary is authorized to select institutions for
      voluntary participation in a Quality Assurance Program that
      provides participating institutions with an alternative
      management approach through which individual schools develop and
      implement their own comprehensive systems, related to processing
      and disbursement of student financial aid, verification of
      student financial aid application data, and entrance and exit
      interviews, thereby enhancing program integrity within the
      student aid delivery system.
      (2) Criteria and consideration
        The Quality Assurance Program authorized by this section shall
      be based on criteria that include demonstrated institutional
      performance, as determined by the Secretary, and shall take into
      consideration current quality assurance goals, as determined by
      the Secretary. The selection criteria shall ensure the
      participation of a diverse group of institutions of higher
      education with respect to size, mission, and geographical
      distribution.
      (3) Waiver
        The Secretary is authorized to waive for any institution
      participating in the Quality Assurance Program any regulations
      dealing with reporting or verification requirements in this
      subchapter and part C of subchapter I of chapter 34 of title 42
      that are addressed by the institution's alternative management
      system, and may substitute such quality assurance reporting as
      the Secretary determines necessary to ensure accountability and
      compliance with the purposes of the programs under this
      subchapter and part C of subchapter I of chapter 34 of title 42.
      The Secretary shall not modify or waive any statutory
      requirements pursuant to this paragraph.
      (4) Determination
        The Secretary is authorized to determine - 
          (A) when an institution that is unable to administer the
        Quality Assurance Program shall be removed from such program;
        and
          (B) when institutions desiring to cease participation in such
        program will be required to complete the current award year
        under the requirements of the Quality Assurance Program.
      (5) Review and evaluation
        The Secretary shall review and evaluate the Quality Assurance
      Program conducted by each participating institution and, on the
      basis of that evaluation, make recommendations regarding
      amendments to this chapter that will streamline the
      administration and enhance the integrity of Federal student
      assistance programs. Such recommendations shall be submitted to
      the Committee on Labor and Human Resources of the Senate and the
      Committee on Education and the Workforce of the House of
      Representatives.
    (b) Regulatory improvement and streamlining experiments
      (1) In general
        The Secretary may continue any experimental sites in existence
      on October 7, 1998. Any activities approved by the Secretary
      prior to October 7, 1998, that are inconsistent with this section
      shall be discontinued not later than June 30, 1999.
      (2) Report
        The Secretary shall review and evaluate the experience of
      institutions participating as experimental sites during the
      period of 1993 through 1998 under this section (as such section
      was in effect on the day before October 7, 1998), and shall
      submit a report based on this review and evaluation to the
      Committee on Labor and Human Resources of the Senate and the
      Committee on Education and the Workforce of the House of
      Representatives not later than 6 months after October 7, 1998.
      Such report shall include - 
          (A) a list of participating institutions and the specific
        statutory or regulatory waivers granted to each institution;
          (B) the findings and conclusions reached regarding each of
        the experiments conducted; and
          (C) recommendations for amendments to improve and streamline
        this chapter, based on the results of the experiment.
      (3) Selection
        (A) In general
          Upon the submission of the report required by paragraph (2),
        the Secretary is authorized to select a limited number of
        additional institutions for voluntary participation as
        experimental sites to provide recommendations to the Secretary
        on the impact and effectiveness of proposed regulations or new
        management initiatives.
        (B) Consultation
          Prior to approving any additional experimental sites, the
        Secretary shall consult with the Committee on Labor and Human
        Resources of the Senate and the Committee on Education and the
        Workforce of the House of Representatives and shall provide to
        such Committees - 
            (i) a list of institutions proposed for participation in
          the experiment and the specific statutory or regulatory
          waivers proposed to be granted to each institution;
            (ii) a statement of the objectives to be achieved through
          the experiment; and
            (iii) an identification of the period of time over which
          the experiment is to be conducted.
        (C) Waivers
          The Secretary is authorized to waive, for any institution
        participating as an experimental site under subparagraph (A),
        any requirements in this subchapter and part C of subchapter I
        of chapter 34 of title 42, or regulations prescribed under this
        subchapter and part C of subchapter I of chapter 34 of title
        42, that will bias the results of the experiment, except that
        the Secretary shall not waive any provisions with respect to
        award rules, grant and loan maximum award amounts, and need
        analysis requirements.
    (c) "Current award year" defined
      For purposes of this section, the term "current award year" means
    the award year during which the participating institution indicates
    the institution's intention to cease participation.

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

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


-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-244 amended section catchline and text
    generally. Prior to amendment, section authorized a Quality
    Assurance Program for institutions to develop and implement systems
    for verifying student financial aid application data.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC2-
                     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.

-End-



-CITE-
    20 USC Sec. 1094b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1094b. Assignment of identification numbers

-STATUTE-
      The Secretary shall assign to each participant in title IV
    programs, including institutions, lenders, and guaranty agencies, a
    single Department of Education identification number to be used to
    identify its participation in each of the title IV programs.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 487B, as added Pub. L. 102-325,
    title IV, Sec. 491, July 23, 1992, 106 Stat. 630.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title IV, referred to in text, means title IV of Pub. L. 89-329,
    as added by Pub. L. 99-498, which is classified generally to this
    subchapter and part C of subchapter I of chapter 34 of Title 42,
    The Public Health and Welfare.

-End-



-CITE-
    20 USC Sec. 1095                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1095. Transfer of allotments

-STATUTE-
      In order to offer an arrangement of types of aid, including
    institutional and State aid which best fits the needs of each
    individual student, an institution may (1) transfer a total of 25
    percent of the institutions allotment under section 1087bb of this
    title to the institution's allotment under section 1070b-3 of this
    title or section 2752 of title 42 (or both); and (2) transfer 25
    percent of the institution's allotment under section 2752 of title
    42 to the institution's allotment under section 1070b-3 of this
    title. Funds transferred to an institution's allotment under
    another section may be used as a part of and for the same purposes
    as funds allotted under that section. The Secretary shall have no
    control over such transfer, except as specifically authorized,
    except for the collection and dissemination of information.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 488, as added Pub. L. 99-498, title
    IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1490; amended Pub. L. 100-
    50, Sec. 15(14), June 3, 1987, 101 Stat. 357; Pub. L. 102-325,
    title IV, Sec. 492, July 23, 1992, 106 Stat. 630.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1095, Pub. L. 89-329, title IV, Sec. 488, as
    added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.
    1452, related to transfer of allotments, prior to the general
    revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1992 - Pub. L. 102-325 inserted first two sentences and struck
    out former first sentence which read as follows: "Up to 10 percent
    of the allotment of an eligible institution for a fiscal year under
    section 1070b-3 of this title or 2752 of title 42, may be
    transferred to, and used for the purposes of, the institution's
    allotment under the other section within the discretion of such
    institution in order to offer an arrangement of types of aid,
    including institutional and State aid, which best fits the needs of
    each individual student."
      1987 - Pub. L. 100-50 substituted "section 2752 of title 42" for
    "section 2756 of title 42".

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-325 to this section, relating to
    transfers of allotments, applicable with respect to funds provided
    for award years beginning on or after July 1, 1993, see section 498
    of Pub. L. 102-325, set out as a note under section 1088 of this
    title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

-End-



-CITE-
    20 USC Sec. 1095a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1095a. Wage garnishment requirement

-STATUTE-
    (a) Garnishment requirements
      Notwithstanding any provision of State law, a guaranty agency, or
    the Secretary in the case of loans made, insured or guaranteed
    under this subchapter and part C of subchapter I of chapter 34 of
    title 42 that are held by the Secretary, may garnish the disposable
    pay of an individual to collect the amount owed by the individual,
    if he or she is not currently making required repayment under a
    repayment agreement with the Secretary, or, in the case of a loan
    guaranteed under part B of this subchapter on which the guaranty
    agency received reimbursement from the Secretary under section
    1078(c) of this title, with the guaranty agency holding the loan,
    as appropriate, provided that - 
        (1) the amount deducted for any pay period may not exceed 15
      percent of disposable pay, except that a greater percentage may
      be deducted with the written consent of the individual involved;
        (2) the individual shall be provided written notice, sent by
      mail to the individual's last known address, a minimum of 30 days
      prior to the initiation of proceedings, from the guaranty agency
      or the Secretary, as appropriate, informing such individual of
      the nature and amount of the loan obligation to be collected, the
      intention of the guaranty agency or the Secretary, as
      appropriate, to initiate proceedings to collect the debt through
      deductions from pay, and an explanation of the rights of the
      individual under this section;
        (3) the individual shall be provided an opportunity to inspect
      and copy records relating to the debt;
        (4) the individual shall be provided an opportunity to enter
      into a written agreement with the guaranty agency or the
      Secretary, under terms agreeable to the Secretary, or the head of
      the guaranty agency or his designee, as appropriate, to establish
      a schedule for the repayment of the debt;
        (5) the individual shall be provided an opportunity for a
      hearing in accordance with subsection (b) of this section on the
      determination of the Secretary or the guaranty agency, as
      appropriate, concerning the existence or the amount of the debt,
      and, in the case of an individual whose repayment schedule is
      established other than by a written agreement pursuant to
      paragraph (4), concerning the terms of the repayment schedule;
        (6) the employer shall pay to the Secretary or the guaranty
      agency as directed in the withholding order issued in this
      action, and shall be liable for, and the Secretary or the
      guaranty agency, as appropriate, may sue the employer in a State
      or Federal court of competent jurisdiction to recover, any amount
      that such employer fails to withhold from wages due an employee
      following receipt of such employer of notice of the withholding
      order, plus attorneys' fees, costs, and, in the court's
      discretion, punitive damages, but such employer shall not be
      required to vary the normal pay and disbursement cycles in order
      to comply with this paragraph;
        (7) if an individual has been reemployed within 12 months after
      having been involuntarily separated from employment, no amount
      may be deducted from the disposable pay of such individual until
      such individual has been reemployed continuously for at least 12
      months; and
        (8) an employer may not discharge from employment, refuse to
      employ, or take disciplinary action against an individual subject
      to wage withholding in accordance with this section by reason of
      the fact that the individual's wages have been subject to
      garnishment under this section, and such individual may sue in a
      State or Federal court of competent jurisdiction any employer who
      takes such action. The court shall award attorneys' fees to a
      prevailing employee and, in its discretion, may order
      reinstatement of the individual, award punitive damages and back
      pay to the employee, or order such other remedy as may be
      reasonably necessary.
    (b) Hearing requirements
      A hearing described in subsection (a)(5) of this section shall be
    provided prior to issuance of a garnishment order if the
    individual, on or before the 15th day following the mailing of the
    notice described in subsection (a)(2) of this section, and in
    accordance with such procedures as the Secretary or the head of the
    guaranty agency, as appropriate, may prescribe, files a petition
    requesting such a hearing. If the individual does not file a
    petition requesting a hearing prior to such date, the Secretary or
    the guaranty agency, as appropriate, shall provide the individual a
    hearing under subsection (a)(5) of this section upon request, but
    such hearing need not be provided prior to issuance of a
    garnishment order. A hearing under subsection (a)(5) of this
    section may not be conducted by an individual under the supervision
    or control of the head of the guaranty agency, except that nothing
    in this sentence shall be construed to prohibit the appointment of
    an administrative law judge. The hearing official shall issue a
    final decision at the earliest practicable date, but not later than
    60 days after the filing of the petition requesting the hearing.
    (c) Notice requirements
      The notice to the employer of the withholding order shall contain
    only such information as may be necessary for the employer to
    comply with the withholding order.
    (d) No attachment of student assistance
      Except as authorized in this section, notwithstanding any other
    provision of Federal or State law, no grant, loan, or work
    assistance awarded under this subchapter and part C of subchapter I
    of chapter 34 of title 42, or property traceable to such
    assistance, shall be subject to garnishment or attachment in order
    to satisfy any debt owed by the student awarded such assistance,
    other than a debt owed to the Secretary and arising under this
    subchapter and part C of subchapter I of chapter 34 of title 42.
    (e) "Disposable pay" defined
      For the purpose of this section, the term "disposable pay" means
    that part of the compensation of any individual from an employer
    remaining after the deduction of any amounts required by law to be
    withheld.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 488A, as added Pub. L. 102-164,
    title VI, Sec. 605(a), Nov. 15, 1991, 105 Stat. 1066; amended Pub.
    L. 105-244, title IV, Sec. 490A, Oct. 7, 1998, 112 Stat. 1753; Pub.
    L. 109-171, title VIII, Sec. 8024, Feb. 8, 2006, 120 Stat. 180.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(1). Pub. L. 109-171 substituted "15 percent"
    for "10 percent".
      1998 - Subsecs. (d), (e). Pub. L. 105-244 added subsec. (d) and
    redesignated former subsec. (d) as (e).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-171 effective July 1, 2006, except as
    otherwise provided, see section 8001(c) of Pub. L. 109-171, set out
    as a note under section 1002 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.

-End-



-CITE-
    20 USC Sec. 1096                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1096. Administrative expenses

-STATUTE-
    (a) Amount of payments
      From the sums appropriated for any fiscal year for the purpose of
    the program authorized under subpart 1 of part A of this
    subchapter, the Secretary shall reserve such sums as may be
    necessary to pay to each institution with which he has an agreement
    under section 1094 of this title, an amount equal to $5 for each
    student at that institution who receives assistance under subpart 1
    of part A of this subchapter. In addition, an institution which has
    entered into an agreement with the Secretary under subpart 3 of
    part A of this subchapter or part C of subchapter I of chapter 34
    of title 42, or under part D of this subchapter shall be entitled
    for each fiscal year which such institution disburses funds to
    eligible students under any such part to a payment for the purpose
    set forth in subsection (b) of this section. The payment for a
    fiscal year shall be payable from each such allotment by payment in
    accordance with regulations of the Secretary and shall be equal to
    5 percent of the institution's first $2,750,000 of expenditures
    plus 4 percent of the institution's expenditures greater than
    $2,750,000 and less than $5,500,000, plus 3 percent of the
    institution's expenditures in excess of $5,500,000 during the
    fiscal year from the sum of its grants to students under subpart 3
    of part A of this subchapter, its expenditures during such fiscal
    year under part C of subchapter I of chapter 34 of title 42 for
    compensation of students, and the principal amount of loans made
    during such fiscal year from its student loan fund established
    under part D of this subchapter, excluding the principal amount of
    any such loans which the institution has agreed to assign under
    section 1087cc(a)(6)(B) (!1) of this title. In addition, the
    Secretary shall provide for payment to each institution of higher
    education an amount equal to 100 percent of the costs incurred by
    the institution in implementing and operating the immigration
    status verification system under section 1091(h) (!1) of this
    title.

    (b) Purpose of payments
      (1) The sums paid to institutions under this part are for the
    sole purpose of offsetting the administrative costs of the programs
    described in subsection (a) of this section.
      (2) If the institution enrolls a significant number of students
    who are (A) attending the institution less than full time, or (B)
    independent students, the institution shall use a reasonable
    proportion of the funds available under this section for financial
    aid services during times and in places that will most effectively
    accommodate the needs of such students.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 489, as added Pub. L. 99-498, title
    IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1491; amended Pub. L. 99-
    603, title I, Sec. 121(b)(7), Nov. 6, 1986, 100 Stat. 3391; Pub.
    L. 100-50, Sec. 15(15), June 3, 1987, 101 Stat. 357; Pub. L. 102-
    325, title IV, Secs. 446(c), 493, July 23, 1992, 106 Stat. 567,
    630; Pub. L. 103-208, Sec. 2(h)(44), (k)(6), Dec. 20, 1993, 107
    Stat. 2478, 2486.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1087cc(a)(6)(B) of this title, referred to in subsec.
    (a), was redesignated section 1087cc(a)(5)(B) by Pub. L. 105-244,
    title IV, Sec. 463(a)(3), Oct. 7, 1998, 112 Stat. 1724.
      Section 1091(h) of this title, referred to in subsec. (a), was
    redesignated section 1091(g) by Pub. L. 103-208, Sec. 2(h)(25),
    Dec. 20, 1993, 107 Stat. 2477.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1096, Pub. L. 89-329, title IV, Sec. 489, as
    added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.
    1453; amended Pub. L. 97-35, title V, Sec. 537(a)(2), Aug. 13,
    1981, 95 Stat. 456, related to administrative expenses, prior to
    the general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1993 - Subsec. (a). Pub. L. 103-208, Sec. 2(k)(6), repealed Pub.
    L. 102-325, Sec. 446(c). See 1992 Amendment note below.
      Pub. L. 103-208, Sec. 2(h)(44), substituted "1091(h) of this
    title" for "1091(c) of this title".
      1992 - Subsec. (a). Pub. L. 102-325, Sec. 493(a)(3), substituted
    "subpart 3" for "subpart 2" in two places.
      Pub. L. 102-325, Sec. 493(a)(1), (2), struck out "(other than
    section 2756a of title 42)" before ", or under part D" in second
    sentence and struck out fourth sentence which read as follows: "The
    payment for a fiscal year for the purpose of subsection (b) of this
    section with respect to section 2756a of title 42 shall be payable
    from each allotment under part C of subchapter I of chapter 34 of
    title 42 in accordance with regulations of the Secretary, and shall
    be 10 percent of the institution's expenditures during such fiscal
    year under such section."
      Pub. L. 102-325, Sec. 446(c), which directed amendment identical
    to amendment by Pub. L. 102-325, Sec. 493(a)(1), (2), above, was
    repealed by Pub. L. 103-208, Sec. 2(k)(6).
      Subsec. (b). Pub. L. 102-325, Sec. 493(b), designated existing
    provisions as par. (1) and added par. (2).
      1987 - Subsec. (a). Pub. L. 100-50 made technical amendment to
    reference to section 2756a of title 42 to correct reference to
    corresponding section of original Act, requiring no change in text.
      1986 - Subsec. (a). Pub. L. 99-603 inserted provision directing
    the Secretary to pay the costs incurred by institutions of higher
    education in implementing and operating the immigration status
    verification system under section 1091(c) of this title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by section 446(c) of Pub. L. 102-325 effective Oct. 1,
    1992, see section 2 of Pub. L. 102-325, set out as a note under
    section 1001 of this title.
      Amendment by section 493 of Pub. L. 102-325, relating to payments
    for administrative expenses, applicable with respect to funds
    provided for award years beginning on or after July 1, 1993, see
    section 498(7) of Pub. L. 102-325, set out as a note under section
    1088 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-603 effective Oct. 1, 1987, see section
    121(c)(2) of Pub. L. 99-603, set out as a note under section 502 of
    Title 42, The Public Health and Welfare.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1096a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1096a. Repealed.

-MISC1-
    Sec. 1096a. Repealed. Pub. L. 102-325, title IV, Sec. 494, July 23,
      1992, 106 Stat. 631.
      Section, Pub. L. 89-329, title IV, Sec. 489A, as added Pub. L.
    102-164, title VI, Sec. 606, Nov. 15, 1991, 105 Stat. 1068, related
    to data matching.

-End-



-CITE-
    20 USC Sec. 1097                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1097. Criminal penalties

-STATUTE-
    (a) In general
      Any person who knowingly and willfully embezzles, misapplies,
    steals, obtains by fraud, false statement, or forgery, or fails to
    refund any funds, assets, or property provided or insured under
    this subchapter and part C of subchapter I of chapter 34 of title
    42 or attempts to so embezzle, misapply, steal, obtain by fraud,
    false statement or forgery, or fail to refund any funds, assets, or
    property, shall be fined not more than $20,000 or imprisoned for
    not more than 5 years, or both, except if the amount so embezzled,
    misapplied, stolen, obtained by fraud, false statement, or forgery,
    or failed to be refunded does not exceed $200, then the fine shall
    not be more than $5,000 and imprisonment shall not exceed one year,
    or both.
    (b) Assignment of loans
      Any person who knowingly and willfully makes any false statement,
    furnishes any false information, or conceals any material
    information in connection with the assignment of a loan which is
    made or insured under this subchapter and part C of subchapter I of
    chapter 34 of title 42 or attempts to so make any false statement,
    furnish any false information, or conceal any material information
    in connection with such assignment shall, upon conviction thereof,
    be fined not more than $10,000 or imprisoned for not more than one
    year, or both.
    (c) Inducements to lend or assign
      Any person who knowingly and willfully makes an unlawful payment
    to an eligible lender under part B of this subchapter or attempts
    to make such unlawful payment as an inducement to make, or to
    acquire by assignment, a loan insured under such part shall, upon
    conviction thereof, be fined not more than $10,000 or imprisoned
    for not more than one year, or both.
    (d) Obstruction of justice
      Any person who knowingly and willfully destroys or conceals any
    record relating to the provision of assistance under this
    subchapter and part C of subchapter I of chapter 34 of title 42 or
    attempts to so destroy or conceal with intent to defraud the United
    States or to prevent the United States from enforcing any right
    obtained by subrogation under this part, shall upon conviction
    thereof, be fined not more than $20,000 or imprisoned not more than
    5 years, or both.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 490, as added Pub. L. 99-498, title
    IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1491; amended Pub. L. 102-
    325, title IV, Sec. 495, July 23, 1992, 106 Stat. 631.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1097, Pub. L. 89-329, title IV, Sec. 490, as
    added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.
    1453, related to criminal penalties, prior to the general revision
    of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1992 - Pub. L. 102-325 amended section generally, inserting
    provisions relating to attempted offenses, wherever appearing, and
    in subsec. (a) inserting provisions relating to failure to refund
    and substituting provisions relating to $20,000 and $5,000 fines
    for provisions relating to $10,000 and $1,000 fines, respectively,
    in subsec. (b) substituting provisions relating to $10,000 fines
    for provisions relating to $1,000 fines, in subsec. (c)
    substituting provisions relating to $10,000 fines for provisions
    relating $1,000 fines, and in subsec. (d) substituting provisions
    relating to $20,000 fines for provisions relating to $10,000 fines.

-End-



-CITE-
    20 USC Sec. 1097a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1097a. Administrative subpoenas

-STATUTE-
    (a) Authority
      To assist the Secretary in the conduct of investigations of
    possible violations of the provisions of this subchapter and part C
    of subchapter I of chapter 34 of title 42, the Secretary is
    authorized to require by subpoena the production of information,
    documents, reports, answers, records, accounts, papers, and other
    documentary evidence pertaining to participation in any program
    under this subchapter and part C of subchapter I of chapter 34 of
    title 42. The production of any such records may be required from
    any place in a State.
    (b) Enforcement
      In case of contumacy by, or refusal to obey a subpoena issued to,
    any person, the Secretary may request the Attorney General to
    invoke the aid of any court of the United States where such person
    resides or transacts business for a court order for the enforcement
    of this section.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 490A, as added Pub. L. 105-244,
    title IV, Sec. 490B, Oct. 7, 1998, 112 Stat. 1754.)


-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.

-End-



-CITE-
    20 USC Sec. 1098                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1098. Advisory Committee on Student Financial Assistance

-STATUTE-
    (a) Establishment and purpose
      (1) There is established in the Department an independent
    Advisory Committee on Student Financial Assistance (hereafter in
    this section referred to as the "Advisory Committee") which shall
    provide advice and counsel to the Congress and to the Secretary on
    student financial aid matters.
      (2) The purpose of the Advisory Committee is - 
        (A) to provide extensive knowledge and understanding of the
      Federal, State, and institutional programs of postsecondary
      student assistance;
        (B) to provide technical expertise with regard to systems of
      needs analysis and application forms; and
        (C) to make recommendations that will result in the maintenance
      of access to postsecondary education for low- and middle-income
      students.
    (b) Independence of Advisory Committee
      In the exercise of its functions, powers, and duties, the
    Advisory Committee shall be independent of the Secretary and the
    other offices and officers of the Department. Notwithstanding
    Department of Education policies and regulations, the Advisory
    Committee shall exert independent control of its budget
    allocations, expenditures and staffing levels, personnel decisions
    and processes, procurements, and other administrative and
    management functions. The Advisory Committee's administration and
    management shall be subject to the usual and customary Federal
    audit procedures. Reports, publications, and other documents of the
    Advisory Committee, including such reports, publications, and
    documents in electronic form, shall not be subject to review by the
    Secretary. The recommendations of the Committee shall not be
    subject to review or approval by any officer in the executive
    branch, but may be submitted to the Secretary for comment prior to
    submission to the Congress in accordance with subsection (f) of
    this section. The Secretary's authority to terminate advisory
    committees of the Department pursuant to section 1233g(b) (!1) of
    this title ceased to be effective on June 23, 1983.

    (c) Membership
      (1) The Advisory Committee shall have 11 members of which - 
        (A) 3 members shall be appointed by the President pro tempore
      of the Senate upon the recommendation of the Majority Leader and
      the Minority Leader,
        (B) 3 members shall be appointed by the Speaker of the House of
      Representatives upon the recommendation of the Majority Leader
      and the Minority Leader, and
        (C) 5 members shall be appointed by the Secretary including,
      but not limited to representatives of States, institutions of
      higher education, secondary schools, credit institutions,
      students, and parents.

      (2) Not less than 7 members of the Advisory Committee shall be
    individuals who have been appointed on the basis of technical
    qualifications, professional standing and demonstrated knowledge in
    the fields of higher education and student aid administration, need
    analysis, financing postsecondary education, student aid delivery,
    and the operations and financing of student loan guarantee
    agencies.
    (d) Functions of the Committee
      The Advisory Committee shall - 
        (1) develop, review, and comment annually upon the system of
      needs analysis established under part E of this subchapter;
        (2) monitor, apprise, and evaluate the effectiveness of student
      aid delivery and recommend improvements;
        (3) recommend data collection needs and student information
      requirements which would improve access and choice for eligible
      students under this subchapter and part C of subchapter I of
      chapter 34 of title 42 and assist the Department of Education in
      improving the delivery of student aid;
        (4) assess the impact of legislative and administrative policy
      proposals;
        (5) review and comment upon, prior to promulgation, all
      regulations affecting programs under this subchapter and part C
      of subchapter I of chapter 34 of title 42, including proposed
      regulations;
        (6) recommend to the Congress and to the Secretary such
      studies, surveys, and analyses of student financial assistance
      programs, policies, and practices, including the special needs of
      low-income, disadvantaged, and nontraditional students, and the
      means by which the needs may be met, but nothing in this section
      shall authorize the committee to perform such studies, surveys,
      or analyses;
        (7) review and comment upon standards by which financial need
      is measured in determining eligibility for Federal student
      assistance programs;
        (8) appraise the adequacies and deficiencies of current student
      financial aid information resources and services and evaluate the
      effectiveness of current student aid information programs; and
        (9) make special efforts to advise Members of Congress and such
      Members' staff of the findings and recommendations made pursuant
      to this paragraph.
    (e) Operations of the Committee
      (1) Each member of the Advisory Committee shall be appointed for
    a term of 3 years, except that, of the members first appointed - 
        (A) 4 shall be appointed for a term of 1 year;
        (B) 4 shall be appointed for a term of 2 years; and
        (C) 3 shall be appointed for a term of 3 years,

    as designated at the time of appointment by the Secretary.
      (2) Any member appointed to fill a vacancy occurring prior to the
    expiration of the term of a predecessor shall be appointed only for
    the remainder of such term. A member of the Advisory Committee
    shall, upon request, continue to serve after the expiration of a
    term until a successor has been appointed. A member of the Advisory
    Committee may be reappointed to successive terms on the Advisory
    Committee.
      (3) No officers or full-time employees of the Federal Government
    shall serve as members of the Advisory Committee.
      (4) The Advisory Committee shall elect a Chairman and a Vice
    Chairman from among its members.
      (5) Six members of the Advisory Committee shall constitute a
    quorum.
      (6) The Advisory Committee shall meet at the call of the Chairman
    or a majority of its members.
    (f) Submission to Department for comment
      The Advisory Committee may submit its proposed recommendations to
    the Department of Education for comment for a period not to exceed
    30 days in each instance.
    (g) Compensation and expenses
      Members of the Advisory Committee may each receive reimbursement
    for travel expenses incident to attending Advisory Committee
    meetings, including per diem in lieu of subsistence, as authorized
    by section 5703 of title 5, for persons in the Government service
    employed intermittently.
    (h) Personnel and resources
      (1) The Advisory Committee may appoint such personnel as may be
    determined necessary by the Chairman without regard to the
    provisions of title 5 governing appointments in the competitive
    service, and 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, but no individual
    so appointed shall be paid in excess of the rate authorized for GS-
    18 of the General Schedule. The Advisory Committee may appoint not
    more than 1 full-time equivalent, nonpermanent, consultant without
    regard to the provisions of title 5. The Advisory Committee shall
    not be required by the Secretary to reduce personnel to meet agency
    personnel reduction goals.
      (2) In carrying out its duties under this chapter, the Advisory
    Committee shall consult with other Federal agencies,
    representatives of State and local governments, and private
    organizations to the extent feasible.
      (3)(A) The Advisory Committee is authorized to secure directly
    from any executive department, bureau, agency, board, commission,
    office, independent establishment, or instrumentality information,
    suggestions, estimates, and statistics for the purpose of this
    section and each such department, bureau, agency, board,
    commission, office, independent establishment, or instrumentality
    is authorized and directed, to the extent permitted by law, to
    furnish such information, suggestions, estimates, and statistics
    directly to the Advisory Committee, upon request made by the
    Chairman.
      (B) The Advisory Committee may enter into contracts for the
    acquisition of information, suggestions, estimates, and statistics
    for the purpose of this section.
      (4) The Advisory Committee is authorized to obtain the services
    of experts and consultants without regard to section 3109 of title
    5 and to set pay in accordance with such section.
      (5) The head of each Federal agency shall, to the extent not
    prohibited by law, cooperate with the Advisory Committee in
    carrying out this section.
      (6) The Advisory Committee is authorized to utilize, with their
    consent, the services, personnel, information, and facilities of
    other Federal, State, local, and private agencies with or without
    reimbursement.
    (i) Availability of funds
      In each fiscal year not less than $800,000, shall be available
    from the amount appropriated for each such fiscal year from
    salaries and expenses of the Department for the costs of carrying
    out the provisions of this section.
    (j) Special analyses and activities
      The Advisory Committee shall - 
        (1) monitor and evaluate the modernization of student financial
      aid systems and delivery processes, including the implementation
      of a performance-based organization within the Department, and
      report to Congress regarding such modernization on not less than
      an annual basis, including recommendations for improvement;
        (2) assess the adequacy of current methods for disseminating
      information about programs under this subchapter and part C of
      subchapter I of chapter 34 of title 42 and recommend
      improvements, as appropriate, regarding early needs assessment
      and information for first-year secondary school students;
        (3) assess and make recommendations concerning the feasibility
      and degree of use of appropriate technology in the application
      for, and delivery and management of, financial assistance under
      this subchapter and part C of subchapter I of chapter 34 of title
      42, as well as policies that promote use of such technology to
      reduce cost and enhance service and program integrity, including
      electronic application and reapplication, just-in-time delivery
      of funds, reporting of disbursements and reconciliation;
        (4) assess the implications of distance education on student
      eligibility and other requirements for financial assistance under
      this subchapter and part C of subchapter I of chapter 34 of title
      42, and make recommendations that will enhance access to
      postsecondary education through distance education while
      maintaining access, through on-campus instruction at eligible
      institutions, and program integrity; and
        (5) make recommendations to the Secretary regarding redundant
      or outdated provisions of and regulations under this chapter,
      consistent with the Secretary's requirements under section 1099c-
      2 of this title.
    (k) Term of Committee
      Notwithstanding the sunset and charter provisions of the Federal
    Advisory Committee Act or any other statute or regulation, the
    Advisory Committee shall be authorized until October 1, 2004.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 491, as added Pub. L. 99-498, title
    IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1492; amended Pub. L. 100-
    50, Sec. 15(16)-(18), June 3, 1987, 101 Stat. 357; Pub. L. 102-
    325, title IV, Sec. 496, July 23, 1992, 106 Stat. 631; Pub. L. 103-
    208, Sec. 2(h)(45), (46), Dec. 20, 1993, 107 Stat. 2478; Pub. L.
    105-244, title IV, Sec. 490C, Oct. 7, 1998, 112 Stat. 1754.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1233g of this title, referred to in subsec. (b), was
    repealed by Pub. L. 103-382, title II, Sec. 212(a)(2), Oct. 20,
    1994, 108 Stat. 3913.
      The provisions of title 5 governing appointments in the
    competitive service, referred to in subsec. (h)(1), are classified
    to section 3301 et seq. of Title 5, Government Organization and
    Employees.
      This chapter, referred to in subsecs. (h)(2) and (j)(5), was in
    the original "the Act", meaning Pub. L. 89-329, as amended, known
    as the Higher Education Act of 1965. For complete classification of
    this Act to the Code, see Short Title note set out under section
    1001 of this title and Tables.
      The Federal Advisory Committee Act, referred to in subsec. (k),
    is Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as amended, which is
    set out in the Appendix to Title 5, Government Organization and
    Employees.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1098, Pub. L. 89-329, title IV, Sec. 491, as
    added Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat.
    1454; amended Pub. L. 98-79, Sec. 11, Aug. 15, 1983, 97 Stat. 484,
    related to a National Commission on Student Financial Assistance,
    prior to the general revision of this part by Pub. L. 99-498.

                                AMENDMENTS                            
      1998 - Subsec. (b). Pub. L. 105-244, Sec. 490C(1), substituted ",
    expenditures and staffing levels" for "and expenditures" in second
    sentence and inserted "Reports, publications, and other documents
    of the Advisory Committee, including such reports, publications,
    and documents in electronic form, shall not be subject to review by
    the Secretary." after third sentence.
      Subsec. (e)(3) to (6). Pub. L. 105-244, Sec. 490C(2), added par.
    (3) and redesignated former pars. (3) to (5) as (4) to (6),
    respectively.
      Subsec. (g). Pub. L. 105-244, Sec. 490C(3), substituted "Members
    of the Advisory Committee may each" for
      "(1) Members of the Advisory Committee who are officers or full-
    time employees of the United States shall serve without
    compensation in addition to that received for their services as
    officers or employees of the United States; but they may be allowed
    travel expenses, including per diem in lieu of subsistence, as
    authorized by section 5703 of title 5, for persons in the
    Government service employed intermittently.
      "(2) Members of the Advisory Committee who are not officers or
    full-time employees of the United States may each".
      Subsec. (h)(1). Pub. L. 105-244, Sec. 490C(4), inserted
    "determined" after "as may be" and inserted at end "The Advisory
    Committee may appoint not more than 1 full-time equivalent,
    nonpermanent, consultant without regard to the provisions of title
    5. The Advisory Committee shall not be required by the Secretary to
    reduce personnel to meet agency personnel reduction goals."
      Subsec. (i). Pub. L. 105-244, Sec. 490C(5), substituted
    "$800,000" for "$750,000".
      Subsec. (j). Pub. L. 105-244, Sec. 490C(6), amended heading and
    text of subsec. (j) generally. Prior to amendment, text read as
    follows: "The committee shall - 
        "(1) monitor and evaluate the program modifications resulting
      from the enactment of the Higher Education Amendments of 1992,
      especially as such amendments relate to the need analysis;
        "(2) monitor and evaluate the implementation, pursuant to
      section 1090 of this title, of a Free Application for Federal
      Student Aid and the process for determining eligibility and
      awards for programs under this subchapter and part C of
      subchapter I of chapter 34 of title 42, including a simplified
      reapplication process;
        "(3) assess the adequacy of current methods for disseminating
      information about programs under this subchapter and part C of
      subchapter I of chapter 34 of title 42 and recommend
      improvements, as appropriate, regarding early needs assessment
      and information for first-year high school students; and
        "(4) assess the adequacy of methods of monitoring student debt
      burden."
      Subsec. (k). Pub. L. 105-244, Sec. 490C(7), substituted "2004"
    for "1998".
      Subsec. (l). Pub. L. 105-244, Sec. 490C(8), struck out heading
    and text of subsec. (l) which directed Advisory Committee to
    conduct a study of means of simplifying all aspects of loan
    programs under part B of this subchapter.
      1993 - Subsec. (d)(1). Pub. L. 103-208, Sec. 2(h)(45), struck out
    "sections 1070a-1 through 1070a-5 of this title and" after
    "established under".
      Subsec. (h)(1). Pub. L. 103-208, Sec. 2(h)(46), substituted
    "subchapter III" for "subtitle III" before "of chapter 53 of such
    title".
      1992 - Subsec. (b). Pub. L. 102-325, Sec. 496(a), inserted after
    first sentence "Notwithstanding Department of Education policies
    and regulations, the Advisory Committee shall exert independent
    control of its budget allocations and expenditures, personnel
    decisions and processes, procurements, and other administrative and
    management functions. The Advisory Committee's administration and
    management shall be subject to the usual and customary Federal
    audit procedures."
      Subsec. (d)(3). Pub. L. 102-325, Sec. 496(b)(1), struck out "and
    in assessing the impact of legislative and administrative policy
    proposals" after "student aid".
      Subsec. (d)(4) to (9). Pub. L. 102-325, Sec. 496(b)(2)-(6), added
    par. (4), redesignated former pars. (4) to (7) as (5) to (8),
    respectively, and added par. (9).
      Subsec. (h)(4). Pub. L. 102-325, Sec. 496(c), substituted
    "without regard to" for "in accordance with" and inserted before
    period at end "and to set pay in accordance with such section".
      Subsec. (i). Pub. L. 102-325, Sec. 496(d), substituted "$750,000"
    for "$500,000".
      Subsecs. (j) to (l). Pub. L. 102-325, Sec. 496(e), added subsecs.
    (j) to (l) and struck out former subsec. (j), which related to
    special institutional lender study.
      1987 - Subsec. (b). Pub. L. 100-50, Sec. 15(16), inserted at end
    "The Secretary's authority to terminate advisory committees of the
    Department pursuant to section 1233g(b) of this title ceased to be
    effective on June 23, 1983."
      Subsec. (i). Pub. L. 100-50, Sec. 15(17), substituted "In each
    fiscal year not less than $500,000" for "An amount, not to exceed
    $500,000 in any fiscal year".
      Subsec. (j). Pub. L. 100-50, Sec. 15(18), added subsec. (j).

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

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-50 effective as if enacted as part of
    the Higher Education Amendments of 1986, Pub. L. 99-498, see
    section 27 of Pub. L. 100-50, set out as a note under section 1001
    of this title.

          REFERENCES IN OTHER LAWS TO GS-16, 17, OR 18 PAY RATES      
      References in laws to the rates of pay for GS-16, 17, or 18, or
    to maximum rates of pay under the General Schedule, to be
    considered references to rates payable under specified sections of
    Title 5, Government Organization and Employees, see section 529
    [title I, Sec. 101(c)(1)] of Pub. L. 101-509, set out in a note
    under section 5376 of Title 5.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1098a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1098a. Regional meetings and negotiated rulemaking

-STATUTE-
    (a) Meetings
      (1) In general
        The Secretary shall obtain public involvement in the
      development of proposed regulations for this subchapter and part
      C of subchapter I of chapter 34 of title 42; (!1) The Secretary
      shall obtain the advice of and recommendations from individuals
      and representatives of the groups involved in student financial
      assistance programs under this subchapter and part C of
      subchapter I of chapter 34 of title 42, such as students, legal
      assistance organizations that represent students, institutions of
      higher education, guaranty agencies, lenders, secondary markets,
      loan servicers, guaranty agency servicers, and collection
      agencies.

      (2) Issues
        The Secretary shall provide for a comprehensive discussion and
      exchange of information concerning the implementation of this
      subchapter and part C of subchapter I of chapter 34 of title 42,
      as amended by the Higher Education Amendments of 1998 through
      such mechanisms as regional meetings and electronic exchanges of
      information. The Secretary shall take into account the
      information received through such mechanisms in the development
      of proposed regulations and shall publish a summary of such
      information in the Federal Register together with such proposed
      regulations.
    (b) Draft regulations
      (1) In general
        After obtaining the advice and recommendations described in
      subsection (a)(1) of this section and before publishing proposed
      regulations in the Federal Register, the Secretary shall prepare
      draft regulations implementing this subchapter and part C of
      subchapter I of chapter 34 of title 42 as amended by the Higher
      Education Amendments of 1998 and shall submit such regulations to
      a negotiated rulemaking process. Participants in the negotiations
      process shall be chosen by the Secretary from individuals
      nominated by groups described in subsection (a)(1) of this
      section, and shall include both representatives of such groups
      from Washington, D.C., and industry participants. To the extent
      possible, the Secretary shall select individuals reflecting the
      diversity in the industry, representing both large and small
      participants, as well as individuals serving local areas and
      national markets. The negotiation process shall be conducted in a
      timely manner in order that the final regulations may be issued
      by the Secretary within the 360-day period described in section
      1232(e) of this title.
      (2) Expansion of negotiated rulemaking
        All regulations pertaining to this subchapter and part C of
      subchapter I of chapter 34 of title 42 that are promulgated after
      October 7, 1998, shall be subject to a negotiated rulemaking
      (including the selection of the issues to be negotiated), unless
      the Secretary determines that applying such a requirement with
      respect to given regulations is impracticable, unnecessary, or
      contrary to the public interest (within the meaning of section
      553(b)(3)(B) of title 5), and publishes the basis for such
      determination in the Federal Register at the same time as the
      proposed regulations in question are first published. All
      published proposed regulations shall conform to agreements
      resulting from such negotiated rulemaking unless the Secretary
      reopens the negotiated rulemaking process or provides a written
      explanation to the participants in that process why the Secretary
      has decided to depart from such agreements. Such negotiated
      rulemaking shall be conducted in accordance with the provisions
      of paragraph (1), and the Secretary shall ensure that a clear and
      reliable record of agreements reached during the negotiations
      process is maintained.
    (c) Applicability of Federal Advisory Committee Act
      The Federal Advisory Committee Act shall not apply to activities
    carried out under this section.
    (d) Authorization of appropriations
      There are authorized to be appropriated in any fiscal year or
    made available from funds appropriated to carry out this part in
    any fiscal year such sums as may be necessary to carry out the
    provisions of this section, except that if no funds are
    appropriated pursuant to this subsection, the Secretary shall make
    funds available to carry out this section from amounts appropriated
    for the operations and expenses of the Department of Education.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 492, as added Pub. L. 102-325,
    title IV, Sec. 497, July 23, 1992, 106 Stat. 633; amended Pub. L.
    105-244, title IV, Sec. 490D, Oct. 7, 1998, 112 Stat. 1755.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Higher Education Amendments of 1998, referred to in subsecs.
    (a)(2) and (b), is Pub. L. 105-244, Oct. 7, 1998, 112 Stat. 1581.
    For complete classification of this Act to the Code, see Short
    Title of 1998 Amendment note set out under section 1001 of this
    title and Tables.
      The Federal Advisory Committee Act, referred to in subsec. (c),
    is Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as amended, which is
    set out in the Appendix to Title 5, Government Organization and
    Employees.


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a)(1). Pub. L. 105-244, Sec. 490D(a)(1)(C),
    substituted "The Secretary shall obtain the advice of and
    recommendations from" for "Such meetings shall include".
      Pub. L. 105-244, Sec. 490D(a)(1)(B), which directed the
    substitution of "this subchapter and part C of subchapter I of
    chapter 34 of title 42;" for "parts B, F, and G of this
    subchapter," was executed by making the substitution for "parts B,
    F, and G of this subchapter."
      Pub. L. 105-244, Sec. 490D(a)(1)(A), struck out "convene regional
    meetings to" before "obtain public involvement".
      Subsec. (a)(2). Pub. L. 105-244, Sec. 490D(a)(2)(B)-(D),
    substituted "this subchapter and part C of subchapter I of chapter
    34 of title 42" for "parts B, F, and G of this subchapter", "1998
    through such mechanisms as regional meetings and electronic
    exchanges of information" for "1992", and "through such mechanisms
    in" for "at such meetings in".
      Pub. L. 105-244, Sec. 490D(a)(2)(A), which directed substitution
    of "The" for "During such meetings the", was executed by making the
    substitution for "During such meetings, the" before "Secretary
    shall provide", to reflect the probable intent of Congress.
      Subsec. (b). Pub. L. 105-244, Sec. 490D(b), designated existing
    provisions as par. (1), inserted par. (1) heading, substituted
    "obtaining the advice and recommendations described in subsection
    (a)(1) of this section" for "holding regional meetings", "this
    subchapter and part C of subchapter I of chapter 34 of title 42"
    for "parts B, F, and G of this subchapter", "1998" for "1992", "360-
    day" for "240-day", and "section 1232(e)" for "section 1232(g)",
    struck out "The Secretary shall follow the guidance provided in
    sections 305.82-4 and 305.85-5 of chapter 1, Code of Federal
    Regulations, and any successor recommendation, regulation, or law."
    after "rulemaking process." and "participating in the regional
    meetings" after "nominated by groups", and added par. (2).

                     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.

-FOOTNOTE-
    (!1) So in original. The semicolon probably should be a period.


-End-



-CITE-
    20 USC Sec. 1098b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1098b. Authorization of appropriations for administrative
      expenses

-STATUTE-
      There are authorized to be appropriated such sums as may be
    necessary for fiscal year 1993 and for each succeeding fiscal year
    thereafter for administrative expenses necessary for carrying out
    this subchapter and part C of subchapter I of chapter 34 of title
    42, including expenses for staff personnel, program reviews, and
    compliance activities.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 493, as added Pub. L. 102-325,
    title IV, Sec. 497, July 23, 1992, 106 Stat. 634.)

-End-



-CITE-
    20 USC Sec. 1098c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1098c. Year 2000 requirements at the Department

-STATUTE-
    (a) Preparations for Year 2000
      In order to ensure that the processing, delivery, and
    administration of grant, loan, and work assistance provided under
    this subchapter and part C of subchapter I of chapter 34 of title
    42 is not interrupted due to operational problems related to the
    inability of computer systems to indicate accurately dates after
    December 31, 1999, the Secretary of Education shall - 
        (1) take such actions as are necessary to ensure that all
      internal and external systems, hardware, and data exchange
      infrastructure administered by the Department that are necessary
      for the processing, delivery, and administration of the grant,
      loan, and work assistance are Year 2000 compliant by March 31,
      1999, such that there will be no business interruption after
      December 31, 1999;
        (2) ensure that the Robert T. Stafford Federal Student Loan
      Program and the William D. Ford Federal Direct Loan Program are
      equal in level of priority with respect to addressing, and that
      resources are managed to equally provide for successful
      resolution of, the Year 2000 computer problem in both programs by
      December 31, 1999;
        (3) work with the Department's various data exchange partners
      under this subchapter and part C of subchapter I of chapter 34 of
      title 42 to fully test all data exchange routes for Year 2000
      compliance via end-to-end testing, and submit a report describing
      the parameters and results of such tests to the Comptroller
      General not later than March 31, 1999;
        (4) ensure that the Inspector General of the Department (or an
      external, independent entity selected by the Inspector General)
      performs and publishes a risk assessment of the systems and
      hardware under the Department's management, that has been
      reviewed by an independent entity, and make such assessment
      publicly available not later than 60 days after October 7, 1998;
        (5) not later than June 30, 1999, ensure that the Inspector
      General (or an external, independent entity selected by the
      Inspector General) conducts a review of the Department's Year
      2000 compliance for the processing, delivery, and administration
      of grant, loan, and work assistance, and submits a report
      reflecting the results of that review to the Chairperson of the
      Committee on Labor and Human Resources of the Senate and the
      Chairperson of the Committee on Education and the Workforce of
      the House of Representatives;
        (6) develop a contingency plan to ensure the programs under
      this subchapter and part C of subchapter I of chapter 34 of title
      42 will continue to run uninterrupted in the event of widespread
      disruptions in the flow of accurate computerized data, which
      contingency plan shall include a prioritization of mission
      critical systems and strategies to allow data partners to
      transfer data through alternate means; and
        (7) alert Congress at the earliest possible time if mission
      critical deadlines will not be met.
    (b) Postponement authority for Year 2000
      (1) Purpose
        It is the purpose of this subsection to provide the Secretary
      with the flexibility necessary to - 
          (A) ensure that the resources and capabilities of
        institutions, lenders, and guaranty agencies are not
        overburdened by the combination of student aid processing and
        delivery requirements added or modified by the amendments made
        by the Higher Education Amendments of 1998 and by the changes
        required to ensure that the systems of the institutions,
        lenders and guaranty agencies are Year 2000 compliant; and
          (B) avoid the disruption of grant, loan, or work assistance
        funds awarded to students because of Year 2000 compliance
        problems at a substantial number of institutions, lenders, and
        guaranty agencies.
      (2) Authority to postpone
        The Secretary may postpone, for a period of time described in
      paragraph (3), the implementation of any requirements under part
      B, C, D, or F of this subchapter that are added or modified by
      the amendments made by the Higher Education Amendments of 1998
      related to the processing or delivery of grant, loan, and work
      assistance (which shall not include the determination of need for
      such assistance) provided under this subchapter and part C of
      subchapter I of chapter 34 of title 42, if the Secretary - 
          (A) determines that - 
            (i) implementation of such requirements would require
          extensive changes to the existing systems of institutions,
          lenders, or guaranty agencies; and
            (ii) postponement is necessary to avoid jeopardizing the
          ability of a substantial number of institutions, lenders, or
          guaranty agencies to ensure that all of the systems of the
          institutions, lenders, or guaranty agencies related to the
          processing or delivery of such assistance function
          successfully after December 31, 1999; and

          (B) promptly publishes in the Federal Register a list of, and
        notifies Congress of, any provisions, the implementation of
        which the Secretary intends to postpone, with the reasons for
        such postponement.
      (3) Exceptions to authority
        The Secretary may not postpone the implementation of one or
      more provisions described in this subsection longer than the
      earlier of - 
          (A) the period of time that the Secretary determines
        necessary to ensure that the processing and delivery systems of
        the institutions, lenders, and guaranty agencies referred to in
        paragraph (1)(A)(ii) (!1) are capable of functioning
        successfully after December 31, 1999; or

          (B) one award year after the effective date applicable to
        such provision under the Higher Education Amendments of 1998.

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

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

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-MISC1-
                              EFFECTIVE DATE                          
      Section effective Oct. 1, 1998, see section 3 of Pub. L. 105-244,
    set out as an Effective Date of 1998 Amendment note under section
    1001 of this title.

-FOOTNOTE-
    (!1) So in original. Probably should be paragraph "(2)(A)(ii)".


-End-



-CITE-
    20 USC Sec. 1098d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1098d. Procedures for cancellations and deferments for
      eligible disabled veterans

-STATUTE-
      The Secretary, in consultation with the Secretary of Veterans
    Affairs, shall develop and implement a procedure to permit
    Department of Veterans Affairs physicians to provide the
    certifications and affidavits needed to enable disabled veterans
    enrolled in the Department of Veterans Affairs health care system
    to document such veterans' eligibility for deferments or
    cancellations of student loans made, insured, or guaranteed under
    this subchapter and part C of subchapter I of chapter 34 of title
    42. Not later than 6 months after October 7, 1998, the Secretary
    and the Secretary of Veterans Affairs jointly shall report to
    Congress on the progress made in developing and implementing the
    procedure.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 493B, as added Pub. L. 105-244,
    title IV, Sec. 490F, Oct. 7, 1998, 112 Stat. 1758.)


-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.

-End-



-CITE-
    20 USC Sec. 1099                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part F - General Provisions Relating to Student Assistance Programs

-HEAD-
    Sec. 1099. Exemption from State disclosure requirements

-STATUTE-
      Loans made, insured, or guaranteed pursuant to a program
    authorized by title IV of the Higher Education Act of 1965 (20
    U.S.C. 1070 et seq.) [and 42 U.S.C. 2751 et seq.] shall not be
    subject to any disclosure requirements of any State law.

-SOURCE-
    (Pub. L. 97-320, title VII, Sec. 701(b), Oct. 15, 1982, 96 Stat.
    1538.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Higher Education Act of 1965, referred to in text, is Pub. L.
    89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Title IV of the
    Act is classified generally to this subchapter and part C (Sec.
    2751 et seq.) of subchapter I of chapter 34 of Title 42, The Public
    Health and Welfare. For complete classification of this Act to the
    Code, see Short Title note set out under section 1001 of this title
    and Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Garn-St Germain Depository
    Institutions Act of 1982, and not as part of title IV of the Higher
    Education Act of 1965 which comprises this subchapter.


-MISC1-
                              EFFECTIVE DATE                          
      Section effective both with respect to loans made prior to and
    after Oct. 15, 1982, see section 701(c) of Pub. L. 97-320, set out
    as an Effective Date of 1982 Amendment note under section 1603 of
    Title 15, Commerce and Trade.

-End-


-CITE-
    20 USC Part G - Program Integrity                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part G - Program Integrity

-HEAD-
                        PART G - PROGRAM INTEGRITY                    

-COD-
                               CODIFICATION                           
      Pub. L. 105-244, title IV, Sec. 491(1), Oct. 7, 1998, 112 Stat.
    1758, added heading and struck out former heading.
      This part was added as part H of title IV of Pub. L. 89-329 by
    Pub. L. 102-325, title IV, Sec. 499, July 23, 1992, 106 Stat. 634.
    The letter designation of this part was changed from "H" to "G" for
    codification purposes. See Codification note preceding section
    1087a of this title.

-End-


-CITE-
    20 USC subpart 1 - state role                               01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part G - Program Integrity
    subpart 1 - state role

-HEAD-
                          SUBPART 1 - STATE ROLE                      

-COD-
                               CODIFICATION                           
      Subpart 1 of part H 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. 102-325, title IV, Sec. 499, July 23,
    1992, 106 Stat. 635, and amended by Pub. L. 103-208, Dec. 20, 1993,
    107 Stat. 2457. Subpart 1 is shown herein, however, as having been
    added by Pub. L. 105-244, title IV, Sec. 491(2), Oct. 7, 1998, 112
    Stat. 1759, without reference to those intervening amendments
    because of the extensive revision of subpart 1 by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1099a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part G - Program Integrity
    subpart 1 - state role

-HEAD-
    Sec. 1099a. State responsibilities

-STATUTE-
    (a) State responsibilities
      As part of the integrity program authorized by this part, each
    State, through one State agency or several State agencies selected
    by the State, shall - 
        (1) furnish the Secretary, upon request, information with
      respect to the process for licensing or other authorization for
      institutions of higher education to operate within the State;
        (2) notify the Secretary promptly whenever the State revokes a
      license or other authority to operate an institution of higher
      education; and
        (3) notify the Secretary promptly whenever the State has
      credible evidence that an institution of higher education within
      the State - 
          (A) has committed fraud in the administration of the student
        assistance programs authorized by this subchapter and part C of
        subchapter I of chapter 34 of title 42; or
          (B) has substantially violated a provision of this subchapter
        and part C of subchapter I of chapter 34 of title 42.
    (b) Institutional responsibility
      Each institution of higher education shall provide evidence to
    the Secretary that the institution has authority to operate within
    a State at the time the institution is certified under subpart 3 of
    this part.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 495, as added Pub. L. 105-244,
    title IV, Sec. 491(2), Oct. 7, 1998, 112 Stat. 1758.)


-MISC1-
                             PRIOR PROVISIONS                         
      Prior sections 1099a to 1099a-3 were omitted in the general
    amendment of this subpart by Pub. L. 105-244.
      Section 1099a, Pub. L. 89-329, title IV, Sec. 494, as added Pub.
    L. 102-325, title IV, Sec. 499, July 23, 1992, 106 Stat. 635,
    authorized State postsecondary review program.
      Section 1099a-1, Pub. L. 89-329, title IV, Sec. 494A, as added
    Pub. L. 102-325, title IV, Sec. 499, July 23, 1992, 106 Stat. 635,
    related to State postsecondary review entity agreements.
      Section 1099a-2, Pub. L. 89-329, title IV, Sec. 494B, as added
    Pub. L. 102-325, title IV, Sec. 499, July 23, 1992, 106 Stat. 637,
    related to Federal reimbursement of State postsecondary review
    costs.
      Section 1099a-3, Pub. L. 89-329, title IV, Sec. 494C, as added
    Pub. L. 102-325, title IV, Sec. 499, July 23, 1992, 106 Stat. 637;
    amended Pub. L. 103-208, Sec. 2(i)(1), (2), Dec. 20, 1993, 107
    Stat. 2478, related to functions of State review entities.

-End-


-CITE-
    20 USC subpart 2 - accrediting agency recognition           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part G - Program Integrity
    subpart 2 - accrediting agency recognition

-HEAD-
                SUBPART 2 - ACCREDITING AGENCY RECOGNITION            

-COD-
                               CODIFICATION                           
      Pub. L. 105-244, title IV, Sec. 492(a)(1), Oct. 7, 1998, 112
    Stat. 1759, substituted "recognition" for "approval" in heading.

-End-



-CITE-
    20 USC Sec. 1099b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part G - Program Integrity
    subpart 2 - accrediting agency recognition

-HEAD-
    Sec. 1099b. Recognition of accrediting agency or association

-STATUTE-
    (a) Criteria required
      No accrediting agency or association may be determined by the
    Secretary to be a reliable authority as to the quality of education
    or training offered for the purposes of this chapter or for other
    Federal purposes, unless the agency or association meets criteria
    established by the Secretary pursuant to this section. The
    Secretary shall, after notice and opportunity for a hearing,
    establish criteria for such determinations. Such criteria shall
    include an appropriate measure or measures of student achievement.
    Such criteria shall require that - 
        (1) the accrediting agency or association shall be a State,
      regional, or national agency or association and shall demonstrate
      the ability and the experience to operate as an accrediting
      agency or association within the State, region, or nationally, as
      appropriate;
        (2) such agency or association - 
          (A)(i) for the purpose of participation in programs under
        this chapter, has a voluntary membership of institutions of
        higher education and has as a principal purpose the accrediting
        of institutions of higher education; or
          (ii) for the purpose of participation in other programs
        administered by the Department of Education or other Federal
        agencies, has a voluntary membership and has as its principal
        purpose the accrediting of institutions of higher education or
        programs;
          (B) is a State agency approved by the Secretary for the
        purpose described in subparagraph (A); or
          (C) is an agency or association that, for the purpose of
        determining eligibility for student assistance under this
        subchapter and part C of subchapter I of chapter 34 of title
        42, conducts accreditation through (i) a voluntary membership
        organization of individuals participating in a profession, or
        (ii) an agency or association which has as its principal
        purpose the accreditation of programs within institutions,
        which institutions are accredited by another agency or
        association recognized by the Secretary;

        (3) if such agency or association is an agency or association
      described in - 
          (A) subparagraph (A)(i) of paragraph (2), then such agency or
        association is separate and independent, both administratively
        and financially of any related, associated, or affiliated trade
        association or membership organization;
          (B) subparagraph (B) of paragraph (2), then such agency or
        association has been recognized by the Secretary on or before
        October 1, 1991; or
          (C) subparagraph (C) of paragraph (2) and such agency or
        association has been recognized by the Secretary on or before
        October 1, 1991, then the Secretary may waive the requirement
        that such agency or association is separate and independent,
        both administratively and financially of any related,
        associated, or affiliated trade association or membership
        organization upon a demonstration that the existing
        relationship has not served to compromise the independence of
        its accreditation process;

        (4) such agency or association consistently applies and
      enforces standards that ensure that the courses or programs of
      instruction, training, or study offered by the institution of
      higher education, including distance education courses or
      programs, are of sufficient quality to achieve, for the duration
      of the accreditation period, the stated objective for which the
      courses or the programs are offered;
        (5) the standards for accreditation of the agency or
      association assess the institution's - 
          (A) success with respect to student achievement in relation
        to the institution's mission, including, as appropriate,
        consideration of course completion, State licensing
        examinations, and job placement rates;
          (B) curricula;
          (C) faculty;
          (D) facilities, equipment, and supplies;
          (E) fiscal and administrative capacity as appropriate to the
        specified scale of operations;
          (F) student support services;
          (G) recruiting and admissions practices, academic calendars,
        catalogs, publications, grading and advertising;
          (H) measures of program length and the objectives of the
        degrees or credentials offered;
          (I) record of student complaints received by, or available
        to, the agency or association; and
          (J) record of compliance with its program responsibilities
        under this subchapter and part C of subchapter I of chapter 34
        of title 42 based on the most recent student loan default rate
        data provided by the Secretary, the results of financial or
        compliance audits, program reviews, and such other information
        as the Secretary may provide to the agency or association;

      except that subparagraphs (A), (H), and (J) shall not apply to
      agencies or associations described in paragraph (2)(A)(ii) of
      this subsection;
        (6) such agency or association shall apply procedures
      throughout the accrediting process, including evaluation and
      withdrawal proceedings, that comply with due process, including -
      
          (A) adequate specification of requirements and deficiencies
        at the institution of higher education or program being
        examined;
          (B) notice of an opportunity for a hearing by any such
        institution;
          (C) the right to appeal any adverse action against any such
        institution; and
          (D) the right to representation by counsel for any such
        institution;

        (7) such agency or association shall notify the Secretary and
      the appropriate State licensing or authorizing agency within 30
      days of the accreditation of an institution or any final denial,
      withdrawal, suspension, or termination of accreditation or
      placement on probation of an institution, together with any other
      adverse action taken with respect to an institution; and
        (8) such agency or association shall make available to the
      public, upon request, and to the Secretary, and the State
      licensing or authorizing agency a summary of any review resulting
      in a final accrediting decision involving denial, termination, or
      suspension of accreditation, together with the comments of the
      affected institution.
    (b) "Separate and independent" defined
      For the purpose of subsection (a)(3) of this section, the term
    "separate and independent" means that - 
        (1) the members of the postsecondary education governing body
      of the accrediting agency or association are not elected or
      selected by the board or chief executive officer of any related,
      associated, or affiliated trade association or membership
      organization;
        (2) among the membership of the board of the accrediting agency
      or association there shall be one public member (who is not a
      member of any related trade or membership organization) for each
      six members of the board, with a minimum of one such public
      member, and guidelines are established for such members to avoid
      conflicts of interest;
        (3) dues to the accrediting agency or association are paid
      separately from any dues paid to any related, associated, or
      affiliated trade association or membership organization; and
        (4) the budget of the accrediting agency or association is
      developed and determined by the accrediting agency or association
      without review or resort to consultation with any other entity or
      organization.
    (c) Operating procedures required
      No accrediting agency or association may be recognized by the
    Secretary as a reliable authority as to the quality of education or
    training offered by an institution seeking to participate in the
    programs authorized under this subchapter and part C of subchapter
    I of chapter 34 of title 42, unless the agency or association - 
        (1) performs, at regularly established intervals, on-site
      inspections and reviews of institutions of higher education
      (which may include unannounced site visits) with particular focus
      on educational quality and program effectiveness, and ensures
      that accreditation team members are well-trained and
      knowledgeable with respect to their responsibilities;
        (2) requires that any institution of higher education subject
      to its jurisdiction which plans to establish a branch campus
      submit a business plan, including projected revenues and
      expenditures, prior to opening the branch campus;
        (3) agrees to conduct, as soon as practicable, but within a
      period of not more than 6 months of the establishment of a new
      branch campus or a change of ownership of an institution of
      higher education, an on-site visit of that branch campus or of
      the institution after a change of ownership;
        (4) requires that teach-out agreements among institutions are
      subject to approval by the accrediting agency or association
      consistent with standards promulgated by such agency or
      association;
        (5) maintains and makes publicly available written materials
      regarding standards and procedures for accreditation, appeal
      procedures, and the accreditation status of each institution
      subject to its jurisdiction; and
        (6) discloses publicly whenever an institution of higher
      education subject to its jurisdiction is being considered for
      accreditation or reaccreditation.
    (d) Length of recognition
      No accrediting agency or association may be recognized by the
    Secretary for the purpose of this chapter for a period of more than
    5 years.
    (e) Initial arbitration rule
      The Secretary may not recognize the accreditation of any
    institution of higher education unless the institution of higher
    education agrees to submit any dispute involving the final denial,
    withdrawal, or termination of accreditation to initial arbitration
    prior to any other legal action.
    (f) Jurisdiction
      Notwithstanding any other provision of law, any civil action
    brought by an institution of higher education seeking accreditation
    from, or accredited by, an accrediting agency or association
    recognized by the Secretary for the purpose of this subchapter and
    part C of subchapter I of chapter 34 of title 42 and involving the
    denial, withdrawal, or termination of accreditation of the
    institution of higher education, shall be brought in the
    appropriate United States district court.
    (g) Limitation on scope of criteria
      Nothing in this chapter shall be construed to permit the
    Secretary to establish criteria for accrediting agencies or
    associations that are not required by this section. Nothing in this
    chapter shall be construed to prohibit or limit any accrediting
    agency or association from adopting additional standards not
    provided for in this section.
    (h) Change of accrediting agency
      The Secretary shall not recognize the accreditation of any
    otherwise eligible institution of higher education if the
    institution of higher education is in the process of changing its
    accrediting agency or association, unless the eligible institution
    submits to the Secretary all materials relating to the prior
    accreditation, including materials demonstrating reasonable cause
    for changing the accrediting agency or association.
    (i) Dual accreditation rule
      The Secretary shall not recognize the accreditation of any
    otherwise eligible institution of higher education if the
    institution of higher education is accredited, as an institution,
    by more than one accrediting agency or association, unless the
    institution submits to each such agency and association and to the
    Secretary the reasons for accreditation by more than one such
    agency or association and demonstrates to the Secretary reasonable
    cause for its accreditation by more than one agency or association.
    If the institution is accredited, as an institution, by more than
    one accrediting agency or association, the institution shall
    designate which agency's accreditation shall be utilized in
    determining the institution's eligibility for programs under this
    chapter.
    (j) Impact of loss of accreditation
      An institution may not be certified or recertified as an
    institution of higher education under section 1002 of this title
    and subpart 3 of this part or participate in any of the other
    programs authorized by this chapter if such institution - 
        (1) is not currently accredited by any agency or association
      recognized by the Secretary;
        (2) has had its accreditation withdrawn, revoked, or otherwise
      terminated for cause during the preceding 24 months, unless such
      withdrawal, revocation, or termination has been rescinded by the
      same accrediting agency; or
        (3) has withdrawn from accreditation voluntarily under a show
      cause or suspension order during the preceding 24 months, unless
      such order has been rescinded by the same accrediting agency.
    (k) Religious institution rule
      Notwithstanding subsection (j) of this section, the Secretary
    shall allow an institution that has had its accreditation
    withdrawn, revoked, or otherwise terminated, or has voluntarily
    withdrawn from an accreditation agency, to remain certified as an
    institution of higher education under section 1002 of this title
    and subpart 3 of this part for a period sufficient to allow such
    institution to obtain alternative accreditation, if the Secretary
    determines that the reason for the withdrawal, revocation, or
    termination - 
        (1) is related to the religious mission or affiliation of the
      institution; and
        (2) is not related to the accreditation criteria provided for
      in this section.
    (l) Limitation, suspension, or termination of recognition
      (1) If the Secretary determines that an accrediting agency or
    association has failed to apply effectively the criteria in this
    section, or is otherwise not in compliance with the requirements of
    this section, the Secretary shall - 
        (A) after notice and opportunity for a hearing, limit, suspend,
      or terminate the recognition of the agency or association; or
        (B) require the agency or association to take appropriate
      action to bring the agency or association into compliance with
      such requirements within a timeframe specified by the Secretary,
      except that - 
          (i) such timeframe shall not exceed 12 months unless the
        Secretary extends such period for good cause; and
          (ii) if the agency or association fails to bring the agency
        or association into compliance within such timeframe, the
        Secretary shall, after notice and opportunity for a hearing,
        limit, suspend, or terminate the recognition of the agency or
        association.

      (2) The Secretary may determine that an accrediting agency or
    association has failed to apply effectively the standards provided
    in this section if an institution of higher education seeks and
    receives accreditation from the accrediting agency or association
    during any period in which the institution is the subject of any
    interim action by another accrediting agency or association,
    described in paragraph (2)(A)(i), (2)(B), or (2)(C) of subsection
    (a) of this section, leading to the suspension, revocation, or
    termination of accreditation or the institution has been notified
    of the threatened loss of accreditation, and the due process
    procedures required by such suspension, revocation, termination, or
    threatened loss have not been completed.
    (m) Limitation on Secretary's authority
      The Secretary may only recognize accrediting agencies or
    associations which accredit institutions of higher education for
    the purpose of enabling such institutions to establish eligibility
    to participate in the programs under this chapter or which accredit
    institutions of higher education or higher education programs for
    the purpose of enabling them to establish eligibility to
    participate in other programs administered by the Department of
    Education or other Federal agencies.
    (n) Independent evaluation
      (1) The Secretary shall conduct a comprehensive review and
    evaluation of the performance of all accrediting agencies or
    associations which seek recognition by the Secretary in order to
    determine whether such accrediting agencies or associations meet
    the criteria established by this section. The Secretary shall
    conduct an independent evaluation of the information provided by
    such agency or association. Such evaluation shall include - 
        (A) the solicitation of third-party information concerning the
      performance of the accrediting agency or association; and
        (B) site visits, including unannounced site visits as
      appropriate, at accrediting agencies and associations, and, at
      the Secretary's discretion, at representative member
      institutions.

      (2) The Secretary shall place a priority for review of
    accrediting agencies or associations on those agencies or
    associations that accredit institutions of higher education that
    participate most extensively in the programs authorized by this
    subchapter and part C of subchapter I of chapter 34 of title 42 and
    on those agencies or associations which have been the subject of
    the most complaints or legal actions.
      (3) The Secretary shall consider all available relevant
    information concerning the compliance of the accrediting agency or
    association with the criteria provided for in this section,
    including any complaints or legal actions against such agency or
    association. In cases where deficiencies in the performance of an
    accreditation agency or association with respect to the
    requirements of this section are noted, the Secretary shall take
    these deficiencies into account in the recognition process. The
    Secretary shall not, under any circumstances, base decisions on the
    recognition or denial of recognition of accreditation agencies or
    associations on criteria other than those contained in this
    section. When the Secretary decides to recognize an accrediting
    agency or association, the Secretary shall determine the agency or
    association's scope of recognition. If the agency or association
    reviews institutions offering distance education courses or
    programs and the Secretary determines that the agency or
    association meets the requirements of this section, then the agency
    shall be recognized and the scope of recognition shall include
    accreditation of institutions offering distance education courses
    or programs.
      (4) The Secretary shall maintain sufficient documentation to
    support the conclusions reached in the recognition process, and, if
    the Secretary does not recognize any accreditation agency or
    association, shall make publicly available the reason for denying
    recognition, including reference to the specific criteria under
    this section which have not been fulfilled.
    (o) Regulations
      The Secretary shall by regulation provide procedures for the
    recognition of accrediting agencies or associations and for the
    appeal of the Secretary's decisions.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 496, as added Pub. L. 102-325,
    title IV, Sec. 499, July 23, 1992, 106 Stat. 641; amended Pub. L.
    103-208, Sec. 2(i)(3)-(8), Dec. 20, 1993, 107 Stat. 2478, 2479;
    Pub. L. 105-244, title I, Sec. 102(b)(5), title IV, Sec. 492(a)(2)-
    (d), Oct. 7, 1998, 112 Stat. 1622, 1759, 1760.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsecs. (a), (d), (g), (i), (j),
    and (m), 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.


-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-244, Sec. 492(a)(2), substituted "Recognition"
    for "Approval" in section catchline.
      Subsec. (a). Pub. L. 105-244, Sec. 492(b)(1), (2), substituted
    "Criteria" for "Standards" in heading and "criteria" for
    "standards" wherever appearing in introductory provisions.
      Subsec. (a)(4). Pub. L. 105-244, Sec. 492(b)(3), substituted
    "offered by the institution" for "at the institution" and inserted
    ", including distance education courses or programs," after "higher
    education".
      Subsec. (a)(5). Pub. L. 105-244, Sec. 492(b)(4)(A), (H),
    substituted "for accreditation" for "of accreditation" in
    introductory provisions and "(A), (H), and (J)" for "(G), (H), (I),
    (J), and (L)" in concluding provisions.
      Subsec. (a)(5)(A) to (G). Pub. L. 105-244, Sec. 492(b)(4)(C),
    (E), added subpar. (A) and redesignated former subpars. (A) to (F)
    as (B) to (G), respectively. Former subpar. (G) redesignated (H).
      Subsec. (a)(5)(H). Pub. L. 105-244, Sec. 492(b)(4)(F),
    substituted "measures of program length" for "program length and
    tuition and fees in relation to the subject matters taught".
      Pub. L. 105-244, Sec. 492(b)(4)(C), redesignated subpar. (G) as
    (H).
      Pub. L. 105-244, Sec. 492(b)(4)(B), struck out subpar. (H) which
    read as follows: "measures of program length in clock hours or
    credit hours;".
      Subsec. (a)(5)(I). Pub. L. 105-244, Sec. 492(b)(4)(B), (D),
    redesignated subpar. (K) as (I) and struck out former subpar. (I)
    which read as follows: "success with respect to student achievement
    in relation to its mission, including, as appropriate,
    consideration of course completion, State licensing examination,
    and job placement rates;".
      Subsec. (a)(5)(J). Pub. L. 105-244, Sec. 492(b)(4)(G), inserted
    "record of" before "compliance", substituted "based on the most
    recent student loan default rate data provided by the Secretary,
    the" for ", including any", and inserted "any" after "reviews,
    and".
      Pub. L. 105-244, Sec. 492(b)(4)(B), (D), redesignated subpar. (L)
    as (J) and struck out former subpar. (J) which read as follows:
    "default rates in the student loan programs under this subchapter
    and part C of subchapter I of chapter 34 of title 42, based on the
    most recent data provided by the Secretary;".
      Subsec. (a)(5)(K), (L). Pub. L. 105-244, Sec. 492(b)(4)(D),
    redesignated subpars. (K) and (L) as (I) and (J), respectively.
      Subsec. (a)(7). Pub. L. 105-244, Sec. 492(b)(5), substituted
    "State licensing or authorizing agency" for "State postsecondary
    review entity".
      Subsec. (a)(8). Pub. L. 105-244, Sec. 492(b)(6), substituted
    "State licensing or authorizing agency" for "State postsecondary
    review entity of the State in which the institution of higher
    education is located".
      Subsec. (c). Pub. L. 105-244, Sec. 492(c)(1), substituted
    "recognized by the Secretary" for "approved by the Secretary" in
    introductory provisions.
      Subsec. (c)(1). Pub. L. 105-244, Sec. 492(c)(2), substituted
    "(which may include unannounced site visits)" for "(at least one of
    which inspections at each institution that provides vocational
    education and training shall be unannounced),".
      Subsec. (d). Pub. L. 105-244, Sec. 492(d)(1), substituted
    "recognition" for "approval" in heading and "recognized" for
    "approved" in text.
      Subsec. (f). Pub. L. 105-244, Sec. 492(d)(2), substituted
    "recognized" for "approved".
      Subsec. (g). Pub. L. 105-244, Sec. 492(d)(3), substituted
    "criteria" for "standards" in heading and "establish criteria" for
    "establish standards" in text.
      Subsec. (j). Pub. L. 105-244, Sec. 102(b)(5), substituted
    "section 1002" for "section 1088" in introductory provisions.
      Subsec. (k). Pub. L. 105-244, Secs. 102(b)(5), 492(d)(4)(A),
    amended subsec. (k) identically, substituting "section 1002" for
    "section 1088" in introductory provisions.
      Subsec. (k)(2). Pub. L. 105-244, Sec. 492(d)(4)(B), substituted
    "criteria" for "standards".
      Subsec. (l). Pub. L. 105-244, Sec. 492(d)(5), substituted
    "recognition" for "approval" in heading, added par. (1), and struck
    out former par. (1) which read as follows: "The Secretary shall
    limit, suspend, or terminate the approval of an accrediting agency
    or association if the Secretary determines, after notice and
    opportunity for a hearing, that the accrediting agency or
    association has failed to apply effectively the standards or
    operate according to the procedures provided in this section."
      Subsec. (n)(1). Pub. L. 105-244, Sec. 492(d)(6)(A), substituted
    "criteria" for "standards" in introductory provisions.
      Subsec. (n)(3). Pub. L. 105-244, Sec. 492(d)(6)(A), (B),
    substituted "criteria" for "standards" in two places, "recognition
    process" for "approval process", and "recognition or denial of
    recognition" for "approval or disapproval", and inserted at end
    "When the Secretary decides to recognize an accrediting agency or
    association, the Secretary shall determine the agency or
    association's scope of recognition. If the agency or association
    reviews institutions offering distance education courses or
    programs and the Secretary determines that the agency or
    association meets the requirements of this section, then the agency
    shall be recognized and the scope of recognition shall include
    accreditation of institutions offering distance education courses
    or programs."
      Subsec. (n)(4). Pub. L. 105-244, Sec. 492(d)(6)(C), added par.
    (4) and struck out former par. (4) which read as follows: "The
    Secretary shall maintain sufficient documentation to support the
    conclusions reached in the approval process, and, upon disapproval
    of any accreditation agency or association, shall make publicly
    available the reason for such disapproval, including reference to
    the specific standards under this section which have not been
    fulfilled."
      1993 - Subsec. (a)(2)(A)(i). Pub. L. 103-208, Sec. 2(i)(3),
    inserted "of institutions of higher education" after "membership".
      Subsec. (a)(3)(A). Pub. L. 103-208, Sec. 2(i)(4), substituted
    "subparagraph (A)(i)" for "subparagraph (A)".
      Subsec. (a)(5). Pub. L. 103-208, Sec. 2(i)(5), substituted a
    semicolon for the period at end of subpar. (L) and inserted after
    subpar. (L) the following: "except that subparagraphs (G), (H),
    (I), (J), and (L) shall not apply to agencies or associations
    described in paragraph (2)(A)(ii) of this subsection;".
      Subsec. (c). Pub. L. 103-208, Sec. 2(i)(6), substituted "as a
    reliable authority as to the quality of education or training
    offered by an institution seeking to participate in the programs
    authorized under this subchapter and part C of subchapter I of
    chapter 34 of title 42" for "for the purpose of this subchapter and
    part C of subchapter I of chapter 34 of title 42".
      Subsec. (l)(2). Pub. L. 103-208, Sec. 2(i)(7), substituted
    "institution" for "institutution" and "association, described in
    paragraph (2)(A)(i), (2)(B), or (2)(C) of subsection (a) of this
    section, leading to the suspension" for "association leading to the
    suspension".
      Subsec. (n)(1)(B). Pub. L. 103-208, Sec. 2(i)(8), amended subpar.
    (B) generally. Prior to amendment, subpar. (B) read as follows:
    "site visits at both the accrediting agency or association and
    member institutions, including unannounced visits where
    appropriate."

                     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.

                       STUDY OF TRANSFER OF CREDITS                   
      Pub. L. 105-244, title VIII, Sec. 804, Oct. 7, 1998, 112 Stat.
    1806, directed the Secretary of Education to conduct a study to
    evaluate policies or practices instituted by recognized accrediting
    agencies or associations regarding the treatment of the transfer of
    credits from one institution of higher education to another and to
    submit, not later than one year after Oct. 7, 1998, a report to
    Congress detailing the Secretary's findings regarding the study,
    including such recommendation with respect to the recognition of
    accrediting agencies or associations as the Secretary deemed
    advisable.

-End-


-CITE-
    20 USC subpart 3 - eligibility and certification
           procedures                                      01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part G - Program Integrity
    subpart 3 - eligibility and certification procedures

-HEAD-
           SUBPART 3 - ELIGIBILITY AND CERTIFICATION PROCEDURES       

-End-



-CITE-
    20 USC Sec. 1099c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part G - Program Integrity
    subpart 3 - eligibility and certification procedures

-HEAD-
    Sec. 1099c. Eligibility and certification procedures

-STATUTE-
    (a) General requirement
      For purposes of qualifying institutions of higher education for
    participation in programs under this subchapter and part C of
    subchapter I of chapter 34 of title 42, the Secretary shall
    determine the legal authority to operate within a State, the
    accreditation status, and the administrative capability and
    financial responsibility of an institution of higher education in
    accordance with the requirements of this section.
    (b) Single application form
      The Secretary shall prepare and prescribe a single application
    form which - 
        (1) requires sufficient information and documentation to
      determine that the requirements of eligibility, accreditation,
      financial responsibility, and administrative capability of the
      institution of higher education are met;
        (2) requires a specific description of the relationship between
      a main campus of an institution of higher education and all of
      its branches, including a description of the student aid
      processing that is performed by the main campus and that which is
      performed at its branches;
        (3) requires - 
          (A) a description of the third party servicers of an
        institution of higher education; and
          (B) the institution to maintain a copy of any contract with a
        financial aid service provider or loan servicer, and provide a
        copy of any such contract to the Secretary upon request;

        (4) requires such other information as the Secretary determines
      will ensure compliance with the requirements of this subchapter
      and part C of subchapter I of chapter 34 of title 42 with respect
      to eligibility, accreditation, administrative capability and
      financial responsibility; and
        (5) provides, at the option of the institution, for
      participation in one or more of the programs under part B or C of
      this subchapter.
    (c) Financial responsibility standards
      (1) The Secretary shall determine whether an institution has the
    financial responsibility required by this subchapter and part C of
    subchapter I of chapter 34 of title 42 on the basis of whether the
    institution is able - 
        (A) to provide the services described in its official
      publications and statements;
        (B) to provide the administrative resources necessary to comply
      with the requirements of this subchapter and part C of subchapter
      I of chapter 34 of title 42; and
        (C) to meet all of its financial obligations, including (but
      not limited to) refunds of institutional charges and repayments
      to the Secretary for liabilities and debts incurred in programs
      administered by the Secretary.

      (2) Notwithstanding paragraph (1), if an institution fails to
    meet criteria prescribed by the Secretary regarding ratios that
    demonstrate financial responsibility, then the institution shall
    provide the Secretary with satisfactory evidence of its financial
    responsibility in accordance with paragraph (3). Such criteria
    shall take into account any differences in generally accepted
    accounting principles, and the financial statements required
    thereunder, that are applicable to for profit, public, and
    nonprofit institutions. The Secretary shall take into account an
    institution's total financial circumstances in making a
    determination of its ability to meet the standards herein required.
      (3) The Secretary shall determine an institution to be
    financially responsible, notwithstanding the institution's failure
    to meet the criteria under paragraphs (1) and (2), if - 
        (A) such institution submits to the Secretary third-party
      financial guarantees that the Secretary determines are
      reasonable, such as performance bonds or letters of credit
      payable to the Secretary, which third-party financial guarantees
      shall equal not less than one-half of the annual potential
      liabilities of such institution to the Secretary for funds under
      this subchapter and part C of subchapter I of chapter 34 of title
      42, including loan obligations discharged pursuant to section
      1087 of this title, and to students for refunds of institutional
      charges, including funds under this subchapter and part C of
      subchapter I of chapter 34 of title 42;
        (B) such institution has its liabilities backed by the full
      faith and credit of a State, or its equivalent;
        (C) such institution establishes to the satisfaction of the
      Secretary, with the support of a financial statement audited by
      an independent certified public accountant in accordance with
      generally accepted auditing standards, that the institution has
      sufficient resources to ensure against the precipitous closure of
      the institution, including the ability to meet all of its
      financial obligations (including refunds of institutional charges
      and repayments to the Secretary for liabilities and debts
      incurred in programs administered by the Secretary); or
        (D) such institution has met standards of financial
      responsibility, prescribed by the Secretary by regulation, that
      indicate a level of financial strength not less than those
      required in paragraph (2).

      (4) If an institution of higher education that provides a 2-year
    or 4-year program of instruction for which the institution awards
    an associate or baccalaureate degree fails to meet the criteria
    imposed by the Secretary pursuant to paragraph (2), the Secretary
    shall waive that particular requirement for that institution if the
    institution demonstrates to the satisfaction of the Secretary that -
     
        (A) there is no reasonable doubt as to its continued solvency
      and ability to deliver quality educational services;
        (B) it is current in its payment of all current liabilities,
      including student refunds, repayments to the Secretary, payroll,
      and payment of trade creditors and withholding taxes; and
        (C) it has substantial equity in school-occupied facilities,
      the acquisition of which was the direct cause of its failure to
      meet the criteria.

      (5) The determination as to whether an institution has met the
    standards of financial responsibility provided for in paragraphs
    (2) and (3)(C) shall be based on an audited and certified financial
    statement of the institution. Such audit shall be conducted by a
    qualified independent organization or person in accordance with
    standards established by the American Institute of Certified Public
    Accountants. Such statement shall be submitted to the Secretary at
    the time such institution is considered for certification or
    recertification under this section. If the institution is permitted
    to be certified (provisionally or otherwise) and such audit does
    not establish compliance with paragraph (2), the Secretary may
    require that additional audits be submitted.
      (6)(A) The Secretary shall establish requirements for the
    maintenance by an institution of higher education of sufficient
    cash reserves to ensure repayment of any required refunds.
      (B) The Secretary shall provide for a process under which the
    Secretary shall exempt an institution of higher education from the
    requirements described in subparagraph (A) if the Secretary
    determines that the institution - 
        (i) is located in a State that has a tuition recovery fund that
      ensures that the institution meets the requirements of
      subparagraph (A);
        (ii) contributes to the fund; and
        (iii) otherwise has legal authority to operate within the
      State.
    (d) Administrative capacity standard
      The Secretary is authorized - 
        (1) to establish procedures and requirements relating to the
      administrative capacities of institutions of higher education,
      including - 
          (A) consideration of past performance of institutions or
        persons in control of such institutions with respect to student
        aid programs; and
          (B) maintenance of records;

        (2) to establish such other reasonable procedures as the
      Secretary determines will contribute to ensuring that the
      institution of higher education will comply with administrative
      capability required by this subchapter and part C of subchapter I
      of chapter 34 of title 42.
    (e) Financial guarantees from owners
      (1) Notwithstanding any other provision of law, the Secretary
    may, to the extent necessary to protect the financial interest of
    the United States, require - 
        (A) financial guarantees from an institution participating, or
      seeking to participate, in a program under this subchapter and
      part C of subchapter I of chapter 34 of title 42, or from one or
      more individuals who the Secretary determines, in accordance with
      paragraph (2), exercise substantial control over such
      institution, or both, in an amount determined by the Secretary to
      be sufficient to satisfy the institution's potential liability to
      the Federal Government, student assistance recipients, and other
      program participants for funds under this subchapter and part C
      of subchapter I of chapter 34 of title 42; and
        (B) the assumption of personal liability, by one or more
      individuals who exercise substantial control over such
      institution, as determined by the Secretary in accordance with
      paragraph (2), for financial losses to the Federal Government,
      student assistance recipients, and other program participants for
      funds under this subchapter and part C of subchapter I of chapter
      34 of title 42, and civil and criminal monetary penalties
      authorized under this subchapter and part C of subchapter I of
      chapter 34 of title 42.

      (2)(A) The Secretary may determine that an individual exercises
    substantial control over one or more institutions participating in
    a program under this subchapter and part C of subchapter I of
    chapter 34 of title 42 if the Secretary determines that - 
        (i) the individual directly or indirectly controls a
      substantial ownership interest in the institution;
        (ii) the individual, either alone or together with other
      individuals, represents, under a voting trust, power of attorney,
      proxy, or similar agreement, one or more persons who have,
      individually or in combination with the other persons represented
      or the individual representing them, a substantial ownership
      interest in the institution; or
        (iii) the individual is a member of the board of directors, the
      chief executive officer, or other executive officer of the
      institution or of an entity that holds a substantial ownership
      interest in the institution.

      (B) The Secretary may determine that an entity exercises
    substantial control over one or more institutions participating in
    a program under this subchapter and part C of subchapter I of
    chapter 34 of title 42 if the Secretary determines that the entity
    directly or indirectly holds a substantial ownership interest in
    the institution.
      (3) For purposes of this subsection, an ownership interest is
    defined as a share of the legal or beneficial ownership or control
    of, or a right to share in the proceeds of the operation of, an
    institution or institution's parent corporation. An ownership
    interest may include, but is not limited to - 
        (A) a sole proprietorship;
        (B) an interest as a tenant-in-common, joint tenant, or tenant
      by the entireties;
        (C) a partnership; or
        (D) an interest in a trust.

      (4) The Secretary shall not impose the requirements described in
    subparagraphs (A) and (B) of paragraph (1) on an institution that -
    
        (A) has not been subjected to a limitation, suspension, or
      termination action by the Secretary or a guaranty agency within
      the preceding 5 years;
        (B) has not had, during its 2 most recent audits of the
      institutions conduct of programs under this subchapter and part C
      of subchapter I of chapter 34 of title 42, an audit finding that
      resulted in the institution being required to repay an amount
      greater than 5 percent of the funds the institution received from
      programs under this subchapter and part C of subchapter I of
      chapter 34 of title 42 for any year;
        (C) meets and has met, for the preceding 5 years, the financial
      responsibility standards under subsection (c) of this section;
      and
        (D) has not been cited during the preceding 5 years for failure
      to submit audits required under this subchapter and part C of
      subchapter I of chapter 34 of title 42 in a timely fashion.

      (5) For purposes of section 1094(c)(1)(G) of this title, this
    section shall also apply to individuals or organizations that
    contract with an institution to administer any aspect of an
    institution's student assistance program under this subchapter and
    part C of subchapter I of chapter 34 of title 42.
      (6) Notwithstanding any other provision of law, any individual
    who - 
        (A) the Secretary determines, in accordance with paragraph (2),
      exercises substantial control over an institution participating
      in, or seeking to participate in, a program under this subchapter
      and part C of subchapter I of chapter 34 of title 42;
        (B) is required to pay, on behalf of a student or borrower, a
      refund of unearned institutional charges to a lender, or to the
      Secretary; and
        (C) willfully fails to pay such refund or willfully attempts in
      any manner to evade payment of such refund,

    shall, in addition to other penalties provided by law, be liable to
    the Secretary for the amount of the refund not paid, to the same
    extent with respect to such refund that such an individual would be
    liable as a responsible person for a penalty under section 6672(a)
    of title 26 with respect to the nonpayment of taxes.
    (f) Actions on applications and site visits
      The Secretary shall ensure that prompt action is taken by the
    Department on any application required under subsection (b) of this
    section. The personnel of the Department of Education may conduct a
    site visit at each institution before certifying or recertifying
    its eligibility for purposes of any program under this subchapter
    and part C of subchapter I of chapter 34 of title 42. The Secretary
    shall establish priorities by which institutions are to receive
    site visits, and shall, to the extent practicable, coordinate such
    visits with site visits by States, guaranty agencies, and
    accrediting bodies in order to eliminate duplication, and reduce
    administrative burden.
    (g) Time limitations on, and renewal of, eligibility
      (1) General rule
        After the expiration of the certification of any institution
      under the schedule prescribed under this section (as this section
      was in effect prior to October 7, 1998), or upon request for
      initial certification from an institution not previously
      certified, the Secretary may certify the eligibility for the
      purposes of any program authorized under this subchapter and part
      C of subchapter I of chapter 34 of title 42 of each such
      institution for a period not to exceed 6 years.
      (2) Notification
        The Secretary shall notify each institution of higher education
      not later than 6 months prior to the date of the expiration of
      the institution's certification.
      (3) Institutions outside the United States
        The Secretary shall promulgate regulations regarding the
      recertification requirements applicable to an institution of
      higher education outside of the United States that meets the
      requirements of section 1002(a)(1)(C) of this title and received
      less than $500,000 in funds under part B of this subchapter for
      the most recent year for which data are available.
    (h) Provisional certification of institutional eligibility
      (1) Notwithstanding subsections (d) and (g) of this section, the
    Secretary may provisionally certify an institution's eligibility to
    participate in programs under this subchapter and part C of
    subchapter I of chapter 34 of title 42 - 
        (A) for not more than one complete award year in the case of an
      institution of higher education seeking an initial certification;
      and
        (B) for not more than 3 complete award years if - 
          (i) the institution's administrative capability and financial
        responsibility is being determined for the first time;
          (ii) there is a complete or partial change of ownership, as
        defined under subsection (i) of this section, of an eligible
        institution; or
          (iii) the Secretary determines that an institution that seeks
        to renew its certification is, in the judgment of the
        Secretary, in an administrative or financial condition that may
        jeopardize its ability to perform its financial
        responsibilities under a program participation agreement.

      (2) Whenever the Secretary withdraws the recognition of any
    accrediting agency, an institution of higher education which meets
    the requirements of accreditation, eligibility, and certification
    on the day prior to such withdrawal, the Secretary may,
    notwithstanding the withdrawal, continue the eligibility of the
    institution of higher education to participate in the programs
    authorized by this subchapter and part C of subchapter I of chapter
    34 of title 42 for a period not to exceed 18 months from the date
    of the withdrawal of recognition.
      (3) If, prior to the end of a period of provisional certification
    under this subsection, the Secretary determines that the
    institution is unable to meet its responsibilities under its
    program participation agreement, the Secretary may terminate the
    institution's participation in programs under this subchapter and
    part C of subchapter I of chapter 34 of title 42.
    (i) Treatment of changes of ownership
      (1) An eligible institution of higher education that has had a
    change in ownership resulting in a change of control shall not
    qualify to participate in programs under this subchapter and part C
    of subchapter I of chapter 34 of title 42 after the change in
    control (except as provided in paragraph (3)) unless it establishes
    that it meets the requirements of section 1002 of this title (other
    than the requirements in subsections (b)(5) and (c)(3) (!1)) and
    this section after such change in control.

      (2) An action resulting in a change in control may include (but
    is not limited to) - 
        (A) the sale of the institution or the majority of its assets;
        (B) the transfer of the controlling interest of stock of the
      institution or its parent corporation;
        (C) the merger of two or more eligible institutions;
        (D) the division of one or more institutions into two or more
      institutions;
        (E) the transfer of the controlling interest of stock of the
      institutions to its parent corporation; or
        (F) the transfer of the liabilities of the institution to its
      parent corporation.

      (3) An action that may be treated as not resulting in a change in
    control includes (but is not limited to) - 
        (A) the sale or transfer, upon the death of an owner of an
      institution, of the ownership interest of the deceased in that
      institution to a family member or to a person holding an
      ownership interest in that institution; or
        (B) another action determined by the Secretary to be a routine
      business practice.

      (4)(A) The Secretary may provisionally certify an institution
    seeking approval of a change in ownership based on the preliminary
    review by the Secretary of a materially complete application that
    is received by the Secretary within 10 business days of the
    transaction for which the approval is sought.
      (B) A provisional certification under this paragraph shall expire
    not later than the end of the month following the month in which
    the transaction occurred, except that if the Secretary has not
    issued a decision on the application for the change of ownership
    within that period, the Secretary may continue such provisional
    certification on a month-to-month basis until such decision has
    been issued.
    (j) Treatment of branches
      (1) A branch of an eligible institution of higher education, as
    defined pursuant to regulations of the Secretary, shall be
    certified under this subpart before it may participate as part of
    such institution in a program under this subchapter and part C of
    subchapter I of chapter 34 of title 42, except that such branch
    shall not be required to meet the requirements of sections
    1002(b)(1)(E) and 1002(c)(1)(C) of this title prior to seeking such
    certification. Such branch is required to be in existence at least
    2 years after the branch is certified by the Secretary as a branch
    campus participating in a program under this subchapter and part C
    of subchapter I of chapter 34 of title 42, prior to seeking
    certification as a main campus or free-standing institution.
      (2) The Secretary may waive the requirement of section 1001(a)(2)
    of this title for a branch that (A) is not located in a State, (B)
    is affiliated with an eligible institution, and (C) was
    participating in one or more programs under this subchapter and
    part C of subchapter I of chapter 34 of title 42 on or before
    January 1, 1992.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 498, as added Pub. L. 102-325,
    title IV, Sec. 499, July 23, 1992, 106 Stat. 647; amended Pub. L.
    103-208, Sec. 2(i)(9)-(14), Dec. 20, 1993, 107 Stat. 2479, 2480;
    Pub. L. 105-244, title I, Sec. 102(a)(6)(B), (b)(6), (7), title IV,
    Sec. 493(a)-(c)(1), (d)-(h), Oct. 7, 1998, 112 Stat. 1618, 1622,
    1761-1763.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Subsections (b)(5) and (c)(3), referred to in subsec. (i)(1),
    originally meant subsections (b)(5) and (c)(3) of section 1088 of
    this title, see 1998 Amendment note below for subsec. (i)(1). Pub.
    L. 105-244, title I, Sec. 101(c), Oct. 7, 1998, 112 Stat. 1617,
    amended section 1088 by striking out subsecs. (b) and (c) and
    redesignating subsecs. (e) and (f) as (b) and (c), respectively.
    Section 1002 of this title does not contain a subsec. (b)(5) or
    (c)(3), but provisions similar to those appearing in former
    subsecs. (b)(5) and (c)(3) of section 1088 are contained in
    subsecs. (b)(1)(E) and (c)(1)(C) of section 1002.


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (b)(1). Pub. L. 105-244, Sec. 493(a)(1),
    substituted "financial responsibility, and administrative
    capability" for "and capability".
      Subsec. (b)(3). Pub. L. 105-244, Sec. 493(a)(2), amended par. (3)
    generally. Prior to amendment, par. (3) read as follows: "requires
    a description of third party servicers of an institution of higher
    education, together with a copy of any contract with the
    institution of higher education and a financial aid service
    provider or loan servicer; and".
      Subsec. (b)(5). Pub. L. 105-244, Sec. 493(a)(3), (4), added par.
    (5).
      Subsec. (c)(2). Pub. L. 105-244, Sec. 493(b)(1)(B), inserted ",
    public," after "for profit" in second sentence.
      Pub. L. 105-244, Sec. 493(b)(1)(A), which directed amendment of
    first sentence by substituting "regarding ratios that demonstrate
    financial responsibility," for "with respect to operating losses,
    net worth, asset-to-liabilities ratios, or operating fund
    deficits", was executed by making the substitution for text which
    read "asset-to-liabilities ratios" rather than "asset to
    liabilities ratios", to reflect the probable intent of Congress.
      Subsec. (c)(3)(A). Pub. L. 105-244, Sec. 493(b)(2), inserted
    "that the Secretary determines are reasonable" after "Secretary
    third-party financial guarantees".
      Subsec. (c)(4). Pub. L. 105-244, Sec. 493(b)(3)(A), substituted
    "criteria" for "ratio of current assets to current liabilities" in
    introductory provisions.
      Subsec. (c)(4)(C). Pub. L. 105-244, Sec. 493(b)(3)(B),
    substituted "criteria" for "current operating ratio requirement".
      Subsec. (e)(6). Pub. L. 105-244, Sec. 493(c)(1), added par. (6).
      Subsec. (f). Pub. L. 105-244, Sec. 493(d), substituted "and site
    visits" for "; site visits and fees" in heading, "may" for "shall"
    in second sentence, and "shall establish" for "may establish" and
    "shall, to the extent practicable, coordinate" for "may coordinate"
    in third sentence, and struck out at end "The Secretary may charge
    reasonable fees to cover the expenses of certification and site
    visits and, to the extent permitted by appropriations Acts, may
    retain such fees to cover such expenses."
      Subsec. (g). Pub. L. 105-244, Sec. 493(e), amended heading and
    text of subsec. (g) generally. Prior to amendment, text read as
    follows:
      "(1) The eligibility for the purposes of any program authorized
    under this subchapter and part C of subchapter I of chapter 34 of
    title 42 of any institution that is participating in any such
    program on July 23, 1992, shall expire in accordance with the
    schedule prescribed by the Secretary in accordance with paragraph
    (2), but not later than 5 years after July 23, 1992.
      "(2) The Secretary shall establish a schedule for the expiration
    of the eligibility for purposes of any such program of all
    institutions of higher education within the 5-year period specified
    in paragraph (1). Such schedule shall place a priority for the
    expiration of the certification of institutions on those that meet
    the following criteria:
        "(A) institutions subject to review by a State postsecondary
      review entity pursuant to subpart 1 of this part; or
        "(B) other categories of institutions which the Secretary deems
      necessary.
      "(3) After the expiration of the certification of any institution
    under the schedule prescribed under this subsection, or upon
    request for initial certification from an institution not
    previously certified, the Secretary may certify the eligibility for
    the purposes of any program authorized under this subchapter and
    part C of subchapter I of chapter 34 of title 42 of each such
    institution for a period not to exceed 4 years."
      Subsec. (h)(2). Pub. L. 105-244, Sec. 493(f), substituted "the
    recognition" for "the approval" and "of recognition" for "of
    approval".
      Subsec. (i)(1). Pub. L. 105-244, Sec. 102(b)(6), substituted
    "section 1002" for "section 1088".
      Subsec. (i)(4). Pub. L. 105-244, Sec. 493(g), added par. (4).
      Subsec. (j)(1). Pub. L. 105-244, Sec. 493(h), inserted "after the
    branch is certified by the Secretary as a branch campus
    participating in a program under this subchapter and part C of
    subchapter I of chapter 34 of title 42," after "2 years".
      Pub. L. 105-244, Sec. 102(b)(7)(A), substituted "sections
    1002(b)(1)(E) and 1002(c)(1)(C)" for "sections 1088(b)(5) and
    1088(c)(3)".
      Subsec. (j)(2). Pub. L. 105-244, Sec. 102(a)(6)(B), (b)(7)(B),
    amended par. (2) identically, substituting "section 1001(a)(2)" for
    "section 1141(a)(2)".
      1993 - Subsec. (c)(2). Pub. L. 103-208, Sec. 2(i)(9)(A), inserted
    at end "Such criteria shall take into account any differences in
    generally accepted accounting principles, and the financial
    statements required thereunder, that are applicable to for profit
    and nonprofit institutions. The Secretary shall take into account
    an institution's total financial circumstances in making a
    determination of its ability to meet the standards herein
    required."
      Subsec. (c)(3). Pub. L. 103-208, Sec. 2(i)(9)(B), substituted
    "The Secretary shall determine" for "The Secretary may determine"
    in introductory provisions.
      Subsec. (c)(3)(C). Pub. L. 103-208, Sec. 2(i)(9)(C), amended
    subpar. (C) generally. Prior to amendment, subpar. (C) read as
    follows: "such institution establishes to the satisfaction of the
    Secretary, with the support of a report of an independent certified
    public accountant prepared under generally accepted accounting
    principles, that the institution is a going concern capable of
    meeting all of its financial obligations, including (but not
    limited to) refunds of institutional charges and repayments to the
    Secretary for liabilities and debts incurred in programs
    administered by the Secretary; or".
      Subsec. (c)(4) to (6). Pub. L. 103-208, Sec. 2(i)(9)(D), (E),
    added par. (4) and redesignated former pars. (4) and (5) as (5) and
    (6), respectively.
      Subsec. (f). Pub. L. 103-208, Sec. 2(i)(10), inserted after
    second sentence "The Secretary may establish priorities by which
    institutions are to receive site visits, and may coordinate such
    visits with site visits by States, guaranty agencies, and
    accrediting bodies in order to eliminate duplication, and reduce
    administrative burden."
      Subsec. (h)(1)(B)(iii). Pub. L. 103-208, Sec. 2(i)(11), amended
    cl. (iii) generally. Prior to amendment, cl. (iii) read as follows:
    "the Secretary determines that the institution is, in the judgment
    of the Secretary, in an administrative or financial condition that
    may jeopardize its ability to perform its responsibilities under
    its program participation agreement."
      Subsec. (i)(1). Pub. L. 103-208, Sec. 2(i)(12), amended par. (1)
    generally. Prior to amendment, par. (1) read as follows: "For the
    purpose of certifying the eligibility of an institution, an
    eligible institution of higher education that has a change in
    ownership resulting in a change in control shall not be considered
    to be the same institution (except as provided in paragraph (3))
    and shall be considered a new institution for the purpose of
    establishing eligibility, except that such institution shall not be
    required (under section 1088(b)(5) or 1088(c)(3) of this title) to
    be in existence for 2 years prior to seeking such certification
    unless such institution was in existence as a branch for less than
    2 years."
      Subsec. (i)(3)(A). Pub. L. 103-208, Sec. 2(i)(13), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "the death of an owner of an institution, when the owner's
    interest is sold or transferred to either a family member or a
    current stockholder of the corporation; or".
      Subsec. (j)(1). Pub. L. 103-208, Sec. 2(i)(14), amended par. (1)
    generally. Prior to amendment, par. (1) read as follows: "For the
    purposes of this subchapter and part C of subchapter I of chapter
    34 of title 42, a branch of an eligible institution, as defined
    pursuant to regulations of the Secretary, is a separate institution
    of higher education and shall separately meet all the requirements
    of this subchapter and part C of subchapter I of chapter 34 of
    title 42, except that such institution shall not be required (under
    section 1088(b)(5) or 1088(c)(3) of this title) to be in existence
    for 2 years prior to seeking such certification unless such
    institution was in existence as a branch for less than 2 years."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by sections 102(a)(6)(B), (b)(6), (7) and 493(a), (b),
    (d)-(h) of Pub. L. 105-244 effective Oct. 1, 1998, except as
    otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-
    244, set out as a note under section 1001 of this title.
      Pub. L. 105-244, title IV, Sec. 493(c)(2), Oct. 7, 1998, 112
    Stat. 1762, provided that: "The amendment made by paragraph (1)
    [amending this section] shall be effective with respect to any
    unpaid refunds that were first required to be paid to a lender or
    to the Secretary on or after 90 days after the date of enactment of
    this Act [Oct. 7, 1998]."

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-208 effective as if included in the
    Higher Education Amendments of 1992, Pub. L. 102-325, except as
    otherwise provided, see section 5(a) of Pub. L. 103-208, set out as
    a note under section 1051 of this title.

                              EFFECTIVE DATE                          
      Subpart 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.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1099c-1                                         01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part G - Program Integrity
    subpart 3 - eligibility and certification procedures

-HEAD-
    Sec. 1099c-1. Program review and data

-STATUTE-
    (a) General authority
      In order to strengthen the administrative capability and
    financial responsibility provisions of this subchapter and part C
    of subchapter I of chapter 34 of title 42, the Secretary - 
        (1) shall provide for the conduct of program reviews on a
      systematic basis designed to include all institutions of higher
      education participating in programs authorized by this subchapter
      and part C of subchapter I of chapter 34 of title 42;
        (2) shall give priority for program review to institutions of
      higher education that are - 
          (A) institutions with a cohort default rate for loans under
        part B of this subchapter in excess of 25 percent or which
        places such institutions in the highest 25 percent of such
        institutions;
          (B) institutions with a default rate in dollar volume for
        loans under part B of this subchapter which places the
        institutions in the highest 25 percent of such institutions;
          (C) institutions with a significant fluctuation in Federal
        Stafford Loan volume, Federal Direct Stafford/Ford Loan volume,
        or Federal Pell Grant award volume, or any combination thereof,
        in the year for which the determination is made, compared to
        the year prior to such year, that are not accounted for by
        changes in the Federal Stafford Loan program, the Federal
        Direct Stafford/Ford Loan program, or the Pell Grant program,
        or any combination thereof;
          (D) institutions reported to have deficiencies or financial
        aid problems by the State licensing or authorizing agency, or
        by the appropriate accrediting agency or association;
          (E) institutions with high annual dropout rates; and
          (F) such other institutions that the Secretary determines may
        pose a significant risk of failure to comply with the
        administrative capability or financial responsibility
        provisions of this subchapter and part C of subchapter I of
        chapter 34 of title 42; and

        (3) shall establish and operate a central data base of
      information on institutional accreditation, eligibility, and
      certification that includes - 
          (A) all relevant information available to the Department;
          (B) all relevant information made available by the Secretary
        of Veterans Affairs;
          (C) all relevant information from accrediting agencies or
        associations;
          (D) all relevant information available from a guaranty
        agency; and
          (E) all relevant information available from States under
        subpart 1 of this part.
    (b) Special administrative rules
      In carrying out paragraphs (1) and (2) of subsection (a) of this
    section and any other relevant provisions of this subchapter and
    part C of subchapter I of chapter 34 of title 42, the Secretary
    shall - 
        (1) establish guidelines designed to ensure uniformity of
      practice in the conduct of program reviews of institutions of
      higher education;
        (2) make available to each institution participating in
      programs authorized under this subchapter and part C of
      subchapter I of chapter 34 of title 42 complete copies of all
      review guidelines and procedures used in program reviews;
        (3) permit the institution to correct or cure an
      administrative, accounting, or recordkeeping error if the error
      is not part of a pattern of error and there is no evidence of
      fraud or misconduct related to the error;
        (4) base any civil penalty assessed against an institution of
      higher education resulting from a program review or audit on the
      gravity of the violation, failure, or misrepresentation; and
        (5) inform the appropriate State and accrediting agency or
      association whenever the Secretary takes action against an
      institution of higher education under this section, section 1099c
      of this title, or section 1082 of this title.
    (c) Data collection rules
      The Secretary shall develop and carry out a plan for the data
    collection responsibilities described in paragraph (3) of
    subsection (a) of this section. The Secretary shall make the
    information obtained under such paragraph (3) readily available to
    all institutions of higher education, guaranty agencies, States,
    and other organizations participating in the programs authorized by
    this subchapter and part C of subchapter I of chapter 34 of title
    42.
    (d) Training
      The Secretary shall provide training to personnel of the
    Department, including criminal investigative training, designed to
    improve the quality of financial and compliance audits and program
    reviews conducted under this subchapter and part C of subchapter I
    of chapter 34 of title 42.
    (e) Special rule
      The provisions of section 3403(b) of this title shall not apply
    to Secretarial determinations made regarding the appropriate length
    of instruction for programs measured in clock hours.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 498A, as added Pub. L. 102-325,
    title IV, Sec. 499, July 23, 1992, 106 Stat. 652; amended Pub. L.
    103-208, Sec. 2(i)(15), Dec. 20, 1993, 107 Stat. 2480; Pub. L. 105-
    244, title IV, Sec. 494, Oct. 7, 1998, 112 Stat. 1763.)


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a)(2). Pub. L. 105-244, Sec. 494(1)(A)(i),
    substituted "shall" for "may" in introductory provisions.
      Subsec. (a)(2)(C). Pub. L. 105-244, Sec. 494(1)(A)(ii), amended
    subpar. (C) generally. Prior to amendment, subpar. (C) read as
    follows: "institutions with a significant fluctuation in Federal
    Stafford Loan volume or Federal Pell Grant awards, or both, in the
    year for which the determination is made compared to the year prior
    to such year;".
      Subsec. (a)(2)(D). Pub. L. 105-244, Sec. 494(1)(A)(iii), amended
    subpar. (D) generally. Prior to amendment, subpar. (D) read as
    follows: "institutions reported to have deficiencies or financial
    aid problems by the appropriate State postsecondary review entity
    designated under subpart 1 of this part or by the appropriate
    accrediting agency or association;".
      Subsec. (a)(2)(E). Pub. L. 105-244, Sec. 494(1)(A)(iv), inserted
    "and" after the semicolon.
      Subsec. (a)(2)(F), (G). Pub. L. 105-244, Sec. 494(1)(A)(v), added
    subpar. (F) and struck out former subpars. (F) and (G) which read
    as follows:
      "(F) any institution which is required to be reviewed by a State
    postsecondary review entity pursuant to subpart 1 of this part
    under section 1099a-3(b) of this title; and
      "(G) such other institutions as the Secretary deems necessary;
    and".
      Subsec. (a)(3)(A). Pub. L. 105-244, Sec. 494(1)(B), inserted
    "relevant" after "all".
      Subsec. (b). Pub. L. 105-244, Sec. 494(2), amended heading and
    text of subsec. (b). Prior to amendment, text read as follows:
      "(1) In carrying out paragraphs (1) and (2) of subsection (a) of
    this section, the Secretary shall establish guidelines designed to
    ensure uniformity of practice in the conduct of program reviews of
    institutions of higher education.
      "(2) The Secretary shall review the regulations of the Department
    and the application of such regulations to ensure the uniformity of
    interpretation and application of the regulations."
      1993 - Subsec. (e). Pub. L. 103-208 struck out comma after
    "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.

-End-



-CITE-
    20 USC Sec. 1099c-2                                         01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER IV - STUDENT ASSISTANCE
    Part G - Program Integrity
    subpart 3 - eligibility and certification procedures

-HEAD-
    Sec. 1099c-2. Review of regulations

-STATUTE-
    (a) Review required
      The Secretary shall review each regulation issued under this
    subchapter and part C of subchapter I of chapter 34 of title 42
    that is in effect at the time of the review and applies to the
    operations or activities of any participant in the programs
    assisted under this subchapter and part C of subchapter I of
    chapter 34 of title 42. The review shall include a determination of
    whether the regulation is duplicative, or is no longer necessary.
    The review may involve one or more of the following:
        (1) An assurance of the uniformity of interpretation and
      application of such regulations.
        (2) The establishment of a process for ensuring that
      eligibility and compliance issues, such as institutional audit,
      program review, and recertification, are considered
      simultaneously.
        (3) A determination of the extent to which unnecessary costs
      are imposed on institutions of higher education as a consequence
      of the applicability to the facilities and equipment of such
      institutions of regulations prescribed for purposes of regulating
      industrial and commercial enterprises.
    (b) Regulatory and statutory relief for small volume institutions
      The Secretary shall review and evaluate ways in which regulations
    under and provisions of this chapter affecting institution of
    higher education (other than institutions described in section
    1002(a)(1)(C) of this title), that have received in each of the two
    most recent award years prior to October 7, 1998, less than
    $200,000 in funds through this subchapter and part C of subchapter
    I of chapter 34 of title 42, may be improved, streamlined, or
    eliminated.
    (c) Consultation
      In carrying out subsections (a) and (b) of this section, the
    Secretary shall consult with relevant representatives of
    institutions participating in the programs authorized by this
    subchapter and part C of subchapter I of chapter 34 of title 42.
    (d) Reports to Congress
      (1) In general
        The Secretary shall submit, not later than 1 year after October
      7, 1998, a report to the Committee on Labor and Human Resources
      of the Senate and the Committee on Education and the Workforce of
      the House of Representatives detailing the Secretary's findings
      and recommendations based on the reviews conducted under
      subsections (a) and (b) of this section, including a timetable
      for implementation of any recommended changes in regulations and
      a description of any recommendations for legislative changes.
      (2) Additional reports
        Not later than January 1, 2003, the Secretary shall submit a
      report to the Committee on Labor and Human Resources of the
      Senate and the Committee on Education and the Workforce of the
      House of Representatives detailing the Secretary's findings and
      recommendations based on the review conducted under subsection
      (a) of this section, including a timetable for implementation of
      any recommended changes in regulations and a description of any
      recommendations for legislative changes.

-SOURCE-
    (Pub. L. 89-329, title IV, Sec. 498B, as added Pub. L. 105-244,
    title IV, Sec. 495, Oct. 7, 1998, 112 Stat. 1764.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (b), 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.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.


-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.

-End-


-CITE-
    20 USC SUBCHAPTER V - DEVELOPING INSTITUTIONS               01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS

-HEAD-
                  SUBCHAPTER V - DEVELOPING INSTITUTIONS              

-COD-
                               CODIFICATION                           
      Title V of the Higher Education Act of 1965, comprising this
    subchapter, was originally enacted by Pub. L. 89-329, Nov. 8, 1965,
    79 Stat. 1254; amended Pub. L. 90-35, June 29, 1967, 81 Stat. 81;
    Pub. L. 90-83, Sept. 11, 1967, 81 Stat. 195; Pub. L. 90-247, Jan.
    2, 1968, 81 Stat. 783; Pub. L. 90-575, Oct. 16, 1968, 82 Stat.
    1014; Pub. L. 91-230, Apr. 13, 1970, 84 Stat. 121; Pub. L. 92-318,
    June 23, 1972, 86 Stat. 235; Pub. L. 93-380, Aug. 21, 1974, 88
    Stat. 484; Pub. L. 94-482, Oct. 12, 1976, 90 Stat. 2081; Pub. L. 95-
    43, June 15, 1977, 91 Stat. 213; Pub. L. 95-561, Nov. 1, 1978, 92
    Stat. 2143; 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-
    300, Oct. 13, 1982, 96 Stat. 1322; Pub. L. 98-558, Oct. 30, 1984,
    98 Stat. 2878; Pub. L. 99-386, Aug. 22, 1986, 100 Stat. 821; Pub.
    L. 99-498, Oct. 17, 1986, 100 Stat. 1268; Pub. L. 100-50, June 3,
    1987, 101 Stat. 335; Pub. L. 101-226, Dec. 12, 1989, 103 Stat.
    1928; Pub. L. 102-325, July 23, 1992, 106 Stat. 448; Pub. L. 103-
    208, Dec. 20, 1993, 107 Stat. 2457; Pub. L. 103-227, Mar. 31,
    1994, 108 Stat. 125; Pub. L. 103-382, Oct. 20, 1994, 108 Stat.
    3518. Title V is shown herein, however, as having been added by
    Pub. L. 105-244, title V, Sec. 501, Oct. 7, 1998, 112 Stat. 1765,
    without reference to those intervening amendments because of the
    extensive revision of title V by Pub. L. 105-244.

-End-


-CITE-
    20 USC Part A - Hispanic-Serving Institutions               01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part A - Hispanic-Serving Institutions

-HEAD-
                  PART A - HISPANIC-SERVING INSTITUTIONS              


-MISC1-
                             PRIOR PROVISIONS                         
      A prior part A consisted of sections 1102 to 1102j and related to
    State and local programs for teacher excellence prior to the
    general amendment of this subchapter by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1101                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part A - Hispanic-Serving Institutions

-HEAD-
    Sec. 1101. Findings; purpose; and program authority

-STATUTE-
    (a) Findings
      Congress makes the following findings:
        (1) Hispanic Americans are at high risk of not enrolling or
      graduating from institutions of higher education.
        (2) Disparities between the enrollment of non-Hispanic white
      students and Hispanic students in postsecondary education are
      increasing. Between 1973 and 1994, enrollment of white secondary
      school graduates in 4-year institutions of higher education
      increased at a rate two times higher than that of Hispanic
      secondary school graduates.
        (3) Despite significant limitations in resources, Hispanic-
      serving institutions provide a significant proportion of
      postsecondary opportunities for Hispanic students.
        (4) Relative to other institutions of higher education,
      Hispanic-serving institutions are underfunded. Such institutions
      receive significantly less in State and local funding, per full-
      time equivalent student, than other institutions of higher
      education.
        (5) Hispanic-serving institutions are succeeding in educating
      Hispanic students despite significant resource problems that - 
          (A) limit the ability of such institutions to expand and
        improve the academic programs of such institutions; and
          (B) could imperil the financial and administrative stability
        of such institutions.

        (6) There is a national interest in remedying the disparities
      described in paragraphs (2) and (4) and ensuring that Hispanic
      students have an equal opportunity to pursue postsecondary
      opportunities.
    (b) Purpose
      The purpose of this subchapter is to - 
        (1) expand educational opportunities for, and improve the
      academic attainment of, Hispanic students; and
        (2) expand and enhance the academic offerings, program quality,
      and institutional stability of colleges and universities that are
      educating the majority of Hispanic college students and helping
      large numbers of Hispanic students and other low-income
      individuals complete postsecondary degrees.
    (c) Program authority
      The Secretary shall provide grants and related assistance to
    Hispanic-serving institutions to enable such institutions to
    improve and expand their capacity to serve Hispanic students and
    other low-income individuals.

-SOURCE-
    (Pub. L. 89-329, title V, Sec. 501, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1765.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1101, Pub. L. 89-329, title V, Sec. 500, as added
    Pub. L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat.
    653, set forth findings of Congress and purpose of this subchapter,
    prior to the general amendment of this subchapter by Pub. L. 105-
    244.
      Another prior section 1101, Pub. L. 89-329, title V, Sec. 501, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1495, related to statement of purpose and applicability of
    this subchapter, prior to the general amendment of this subchapter
    by Pub. L. 102-325.
      Another prior section 1101, Pub. L. 89-329, title V, Sec. 511,
    Nov. 8, 1965, 79 Stat. 1255; Pub. L. 90-35, Sec. 3(a)(3), (b), June
    29, 1967, 81 Stat. 85; Pub. L. 90-575, title II, Sec. 231 (a),
    (b)(1), Oct. 16, 1968, 82 Stat. 1039; Pub. L. 91-230, title VIII,
    Secs. 804(b), 805(a), Apr. 13, 1970, 84 Stat. 190, 191; Pub. L. 92-
    318, title I, Sec. 141(a)(1)(A), (c)(1)(C), June 23, 1972, 86
    Stat. 284, 285; Pub. L. 93-380, title VIII, Sec. 835(a)(1), Aug.
    21, 1974, 88 Stat. 605; Pub. L. 94-482, title I, Secs.
    151(a)(5)(A), 152(a), Oct. 12, 1976, 90 Stat. 2152; Pub. L. 96-49,
    Sec. 6(a), Aug. 13, 1979, 93 Stat. 353; Pub. L. 96-374, title V,
    Sec. 501(a), Oct. 3, 1980, 94 Stat. 1459, set forth statement of
    purpose and authorization of appropriations for Teacher Corps
    program, prior to repeal by Pub. L. 97-35, title V, Sec. 587(a)(2),
    Aug. 13, 1981, 95 Stat. 480, eff. Oct. 1, 1982.
      A prior section 501 of Pub. L. 89-329 was classified to section
    1102 of this title prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 501 of Pub. L. 89-329 was classified to
    section 1091 of this title prior to repeal by Pub. L. 94-482.

                              EFFECTIVE DATE                          
      Subchapter 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.

                 NATIONAL JOB BANK FOR TEACHER RECRUITMENT             
      Pub. L. 102-325, title XIV, Sec. 1412, July 23, 1992, 106 Stat.
    822, authorized Secretary of Education to conduct study on
    feasibility of establishing national and regional clearinghouses to
    operate national and regional teacher job banks and to contract one
    or more entities to establish a national or regional teacher job
    bank clearinghouse, prior to repeal by Pub. L. 105-332, Sec.
    6(b)(2), Oct. 31, 1998, 112 Stat. 3128.

     TRAINING AND TECHNICAL ASSISTANCE FOR SCHOOL-BASED DECISIONMAKERS
                           DEMONSTRATION PROGRAM
      Pub. L. 102-325, title XV, Sec. 1531, July 23, 1992, 106 Stat.
    834, authorized Secretary of Education to make grants to local
    education agencies, in consortia with one or more institutions of
    higher education, to establish programs to provide training and
    technical assistance to school-based decisionmakers in local
    education agencies implementing system-wide reform, prior to repeal
    by Pub. L. 105-332, Sec. 6(b)(3), Oct. 31, 1998, 112 Stat. 3128.

-End-



-CITE-
    20 USC Sec. 1101a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part A - Hispanic-Serving Institutions

-HEAD-
    Sec. 1101a. Definitions; eligibility

-STATUTE-
    (a) Definitions
      For the purpose of this subchapter:
      (1) Educational and general expenditures
        The term "educational and general expenditures" means the total
      amount expended by an institution for instruction, research,
      public service, academic support (including library
      expenditures), student services, institutional support,
      scholarships and fellowships, operation and maintenance
      expenditures for the physical plant, and any mandatory transfers
      that the institution is required to pay by law.
      (2) Eligible institution
        The term "eligible institution" means - 
          (A) an institution of higher education - 
            (i) that has an enrollment of needy students as required by
          subsection (b) of this section;
            (ii) except as provided in section 1103a(b) of this title,
          the average educational and general expenditures of which are
          low, per full-time equivalent undergraduate student, in
          comparison with the average educational and general
          expenditures per full-time equivalent undergraduate student
          of institutions that offer similar instruction;
            (iii) that is - 
              (I) legally authorized to provide, and provides within
            the State, an educational program for which the institution
            awards a bachelor's degree; or
              (II) a junior or community college;

            (iv) that is accredited by a nationally recognized
          accrediting agency or association determined by the Secretary
          to be reliable authority as to the quality of training
          offered or that is, according to such an agency or
          association, making reasonable progress toward accreditation;
            (v) that meets such other requirements as the Secretary may
          prescribe; and
            (vi) that is located in a State; and

          (B) any branch of any institution of higher education
        described under subparagraph (A) that by itself satisfies the
        requirements contained in clauses (i) and (ii) of such
        subparagraph.

      For purposes of the determination of whether an institution is an
      eligible institution under this paragraph, the factor described
      under subparagraph (A)(i) shall be given twice the weight of the
      factor described under subparagraph (A)(ii).
      (3) Endowment fund
        The term "endowment fund" means a fund that - 
          (A) is established by State law, by a Hispanic-serving
        institution, or by a foundation that is exempt from Federal
        income taxation;
          (B) is maintained for the purpose of generating income for
        the support of the institution; and
          (C) does not include real estate.
      (4) Full-time equivalent students
        The term "full-time equivalent students" means the sum of the
      number of students enrolled full time at an institution, plus the
      full-time equivalent of the number of students enrolled part time
      (determined on the basis of the quotient of the sum of the credit
      hours of all part-time students divided by 12) at such
      institution.
      (5) Hispanic-serving institution
        The term "Hispanic-serving institution" means an institution of
      higher education that - 
          (A) is an eligible institution; and
          (B) has an enrollment of undergraduate full-time equivalent
        students that is at least 25 percent Hispanic students at the
        end of the award year immediately preceding the date of
        application.
      (6) Junior or community college
        The term "junior or community college" means an institution of
      higher education - 
          (A) that admits as regular students persons who are beyond
        the age of compulsory school attendance in the State in which
        the institution is located and who have the ability to benefit
        from the training offered by the institution;
          (B) that does not provide an educational program for which
        the institution awards a bachelor's degree (or an equivalent
        degree); and
          (C) that - 
            (i) provides an educational program of not less than 2
          years in duration that is acceptable for full credit toward
          such a degree; or
            (ii) offers a 2-year program in engineering, mathematics,
          or the physical or biological sciences, designed to prepare a
          student to work as a technician or at the semiprofessional
          level in engineering, scientific, or other technological
          fields requiring the understanding and application of basic
          engineering, scientific, or mathematical principles of
          knowledge.
    (b) Enrollment of needy students
      For the purpose of this subchapter, the term "enrollment of needy
    students" means an enrollment at an institution with respect to
    which - 
        (1) at least 50 percent of the degree students so enrolled are
      receiving need-based assistance under subchapter IV of this
      chapter and part C of subchapter I of chapter 34 of title 42 in
      the second fiscal year preceding the fiscal year for which the
      determination is made (other than loans for which an interest
      subsidy is paid pursuant to section 1078 of this title); or
        (2) a substantial percentage of the students so enrolled are
      receiving Federal Pell Grants in the second fiscal year preceding
      the fiscal year for which determination is made, compared to the
      percentage of students receiving Federal Pell Grants at all such
      institutions in the second fiscal year preceding the fiscal year
      for which the determination is made, unless the requirement of
      this paragraph is waived under section 1103a(a) of this title.

-SOURCE-
    (Pub. L. 89-329, title V, Sec. 502, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1766; amended Pub. L. 108-375,
    div. A, title X, Sec. 1087, Oct. 28, 2004, 118 Stat. 2066; Pub. L.
    109-292, Sec. 4(a), Sept. 30, 2006, 120 Stat. 1341.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1101a, Pub. L. 89-329, title V, Sec. 502, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1496, authorized appropriations for this subchapter, prior to
    the general amendment of this subchapter by Pub. L. 102-325.
      A prior section 502 of Pub. L. 89-329 was classified to section
    1102a of this title, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 502 of Pub. L. 89-329 was classified to
    section 1091a of this title, prior to repeal by Pub. L. 94-482.

                                AMENDMENTS                            
      2006 - Subsec. (a)(5). Pub. L. 109-292, Sec. 4(a)(1), inserted
    "and" at end of subpar. (A), in subpar. (B), struck out "at the
    time of application," before "has an enrollment", substituted "at
    the end of the award year immediately preceding the date of
    application." for "; and", and struck out subpar. (C) which read as
    follows: "provides assurances that not less than 50 percent of the
    institution's Hispanic students are low-income individuals, which
    assurances - 
        "(i) may employ statistical extrapolation using appropriate
      data from the Bureau of the Census or other appropriate Federal
      or State sources; and
        "(ii) the Secretary shall consider as meeting the requirements
      of this subparagraph, unless the Secretary determines, based on a
      preponderance of the evidence, that the assurances do not meet
      the requirements."
      Subsec. (a)(7). Pub. L. 109-292, Sec. 4(a)(2), struck out par.
    (7) which defined "low-income individual".
      2004 - Subsec. (a)(5)(C). Pub. L. 108-375 inserted ", which
    assurances - " and cls. (i) and (ii) before period at end.

-End-



-CITE-
    20 USC Sec. 1101b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part A - Hispanic-Serving Institutions

-HEAD-
    Sec. 1101b. Authorized activities

-STATUTE-
    (a) Types of activities authorized
      Grants awarded under this subchapter shall be used by Hispanic-
    serving institutions of higher education to assist the
    institutions to plan, develop, undertake, and carry out programs to
    improve and expand the institutions' capacity to serve Hispanic
    students and other low-income students.
    (b) Authorized activities
      Grants awarded under this section shall be used for one or more
    of the following activities:
        (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
      classrooms, libraries, laboratories, and other instructional
      facilities.
        (3) Support of faculty exchanges, faculty development,
      curriculum development, academic instruction, and faculty
      fellowships to assist in attaining advanced degrees in the
      fellow's field of instruction.
        (4) Purchase of library books, periodicals, and other
      educational materials, including telecommunications program
      material.
        (5) Tutoring, counseling, and student service programs designed
      to improve academic success.
        (6) Funds management, administrative management, and
      acquisition of equipment for use in strengthening funds
      management.
        (7) Joint use of facilities, such as laboratories and
      libraries.
        (8) Establishing or improving a development office to
      strengthen or improve contributions from alumni and the private
      sector.
        (9) Establishing or improving an endowment fund.
        (10) Creating or improving facilities for Internet or other
      distance learning academic instruction capabilities, including
      purchase or rental of telecommunications technology equipment or
      services.
        (11) Establishing or enhancing a program of teacher education
      designed to qualify students to teach in public elementary
      schools and secondary schools.
        (12) Establishing community outreach programs that will
      encourage elementary school and secondary school students to
      develop the academic skills and the interest to pursue
      postsecondary education.
        (13) Expanding the number of Hispanic and other
      underrepresented graduate and professional students that can be
      served by the institution by expanding courses and institutional
      resources.
        (14) Other activities proposed in the application submitted
      pursuant to section 1101c of this title that - 
          (A) contribute to carrying out the purposes of this
        subchapter; and
          (B) are approved by the Secretary as part of the review and
        acceptance of such application.
    (c) Endowment fund limitations
      (1) Portion of grant
        A Hispanic-serving institution may not use more than 20 percent
      of the grant funds provided under this subchapter for any fiscal
      year for establishing or improving an endowment fund.
      (2) Matching required
        A Hispanic-serving institution that uses any portion of the
      grant funds provided under this subchapter for any fiscal year
      for establishing or improving an endowment fund shall provide
      from non-Federal funds an amount equal to or greater than the
      portion.
      (3) Comparability
        The provisions of part C of subchapter III of this chapter
      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).

-SOURCE-
    (Pub. L. 89-329, title V, Sec. 503, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1768.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 503 of Pub. L. 89-329 was classified to section
    1102b of this title prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 503 of Pub. L. 89-329 was classified to
    section 1091b of this title prior to repeal by Pub. L. 94-482.

-End-



-CITE-
    20 USC Sec. 1101c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part A - Hispanic-Serving Institutions

-HEAD-
    Sec. 1101c. Duration of grant

-STATUTE-
    (a) Award period
      The Secretary may award a grant to a Hispanic-serving institution
    under this subchapter for 5 years.
    (b) Planning grants
      Notwithstanding subsection (a) of this section, the Secretary may
    award a grant to a Hispanic-serving institution under this
    subchapter for a period of 1 year for the purpose of preparation of
    plans and applications for a grant under this subchapter.

-SOURCE-
    (Pub. L. 89-329, title V, Sec. 504, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1769; amended Pub. L. 109-292,
    Sec. 4(b), Sept. 30, 2006, 120 Stat. 1341.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 504 of Pub. L. 89-329 was classified to section
    1102c of this title prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 504 of Pub. L. 89-329 was classified to
    section 1091c of this title prior to repeal by Pub. L. 94-482.

                                AMENDMENTS                            
      2006 - Subsec. (a). Pub. L. 109-292 reenacted heading without
    change and amended text generally. Prior to amendment, text read as
    follows:
      "(1) In general. - The Secretary may award a grant to a Hispanic-
    serving institution under this subchapter for 5 years.
      "(2) Waitout period. - A Hispanic-serving institution shall not
    be eligible to secure a subsequent 5-year grant award under this
    subchapter until 2 years have elapsed since the expiration of the
    institution's most recent 5-year grant award under this subchapter,
    except that for the purpose of this subsection a grant under
    section 1103c(a) of this title shall not be considered a grant
    under this subchapter."

-End-



-CITE-
    20 USC Sec. 1101d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part A - Hispanic-Serving Institutions

-HEAD-
    Sec. 1101d. Special rule

-STATUTE-
      No Hispanic-serving institution that is eligible for and receives
    funds under this subchapter may receive funds under part A or B of
    subchapter III of this chapter during the period for which funds
    under this subchapter are awarded.

-SOURCE-
    (Pub. L. 89-329, title V, Sec. 505, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1770.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 505 of Pub. L. 89-329 was classified to section
    1102d of this title prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 505 of Pub. L. 89-329 was classified to
    section 1091d of this title prior to repeal by Pub. L. 94-482.
      Prior sections 1102 to 1102j were omitted in the general
    amendment of this subchapter by Pub. L. 105-244.
      Section 1102, Pub. L. 89-329, title V, Sec. 501, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 655,
    related to authority and allocation of funds and defined terms.
      Another prior section 1102, Pub. L. 89-329, title V, Sec. 512,
    Nov. 8, 1965, 79 Stat. 1255; Pub. L. 90-35, Sec. 3(a)(3), (4), June
    29, 1967, 81 Stat. 85; Pub. L. 92-318, title I, Sec. 142, June 23,
    1972, 86 Stat. 286; Pub. L. 94-482, title I, Sec. 151(a)(5)(B),
    Oct. 12, 1976, 90 Stat. 2152; Pub. L. 96-88, title III, Sec.
    301(b)(2), title V, Sec. 508(l)(3), Oct. 17, 1979, 93 Stat. 677,
    694; Pub. L. 96-374, title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94
    Stat. 1503, related to establishment and administration of program,
    prior to repeal by Pub. L. 97-35, title V, Sec. 587(a)(2), Aug. 13,
    1981, 95 Stat. 480, eff. Oct. 1, 1982.
      Section 1102a, Pub. L. 89-329, title V, Sec. 502, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 656,
    related to State applications for allotments.
      Section 1102b, Pub. L. 89-329, title V, Sec. 503, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 658,
    related to local applications and use of funds.
      Section 1102c, Pub. L. 89-329, title V, Sec. 504, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 661,
    related to State uses of funds.
      Section 1102d, Pub. L. 89-329, title V, Sec. 505, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 663;
    amended Pub. L. 103-208, Sec. 2(j)(1), Dec. 20, 1993, 107 Stat.
    2480, related to State Academies for teachers.
      Section 1102e, Pub. L. 89-329, title V, Sec. 506, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 666,
    related to State Academies for school leaders.
      Section 1102f, Pub. L. 89-329, title V, Sec. 507, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 669,
    related to uses of funds by institutions of higher education.
      Section 1102g, Pub. L. 89-329, title V, Sec. 508, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 670,
    related to professional development academies.
      Section 1102h, Pub. L. 89-329, title V, Sec. 509, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 673,
    required that Federal funds supplement, not supplant, regular non-
    Federal funds.
      Section 1102i, Pub. L. 89-329, title V, Sec. 510, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 673,
    related to coordination with other programs.
      Section 1102j, Pub. L. 89-329, title V, Sec. 510A, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 674,
    authorized appropriations for State and local programs for teacher
    excellence.

-End-


-CITE-
    20 USC Part B - General Provisions                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part B - General Provisions

-HEAD-
                        PART B - GENERAL PROVISIONS                    


-MISC1-
                             PRIOR PROVISIONS                         
      A prior part B consisted of sections 1103 to 1103g and related to
    National Teacher Academies prior to the general amendment of this
    subchapter by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1103                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part B - General Provisions

-HEAD-
    Sec. 1103. Eligibility; applications

-STATUTE-
    (a) Institutional eligibility
      Each Hispanic-serving institution desiring to receive assistance
    under this subchapter shall submit to the Secretary such enrollment
    data as may be necessary to demonstrate that the institution is a
    Hispanic-serving institution as defined in section 1101a of this
    title, along with such other data and information as the Secretary
    may by regulation require.
    (b) 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 assistance. Subject to the
      availability of appropriations to carry out this subchapter, the
      Secretary may approve an application for a grant under this
      subchapter only if the Secretary determines that - 
          (A) the application meets the requirements of subsection (b)
        of this section; and
          (B) the institution is eligible for assistance in accordance
        with the provisions of this subchapter under which the
        assistance is sought.
      (2) Preliminary applications
        In carrying out paragraph (1), the Secretary may develop a
      preliminary application for use by Hispanic-serving institutions
      applying under this subchapter prior to the submission of the
      principal application.
    (c) Contents
      A Hispanic-serving institution, in the institution's application
    for a grant, shall - 
        (1) set forth, or describe how the institution 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) include a 5-year plan for improving the assistance provided
      by the Hispanic-serving institution to Hispanic students and
      other low-income individuals;
        (3) 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 1101(b) of this title, and in no case supplant those
      funds;
        (4) 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;
        (5) 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 institution under
      this subchapter;
        (6) provide that the institution will comply with the
      limitations set forth in section 1103e of this title;
        (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 that consists of
        several components (as described by the institution 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 institution);
          (C) an evaluation by the institution 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
        institution under this subchapter, and a similar evaluation
        regarding priorities among the components of any single
        proposed project (as described by the institution pursuant to
        subparagraph (A));
          (D) a detailed budget showing the manner in which funds for
        any proposed project would be spent by the institution; 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 (D);

        (8) provide for making reports, in such form and containing
      such information, as the Secretary may require to carry out the
      Secretary's 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 for keeping such records and affording such access to such
      records, as the Secretary may find necessary to assure the
      correctness and verification of such reports; and
        (9) include such other information as the Secretary may
      prescribe.
    (d) Priority
      With respect to applications for assistance under this section,
    the Secretary shall give priority to an application that contains
    satisfactory evidence that the Hispanic-serving institution has
    entered into or will enter into a collaborative arrangement with at
    least one local educational agency or community-based organization
    to provide such agency or organization with assistance (from funds
    other than funds provided under this subchapter) in reducing
    dropout rates for Hispanic students, improving rates of academic
    achievement for Hispanic students, and increasing the rates at
    which Hispanic secondary school graduates enroll in higher
    education.
    (e) 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 and shall advance the base-year for the
    determinations forward following each annual grant cycle.

-SOURCE-
    (Pub. L. 89-329, title V, Sec. 511, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1770.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1103, Pub. L. 89-329, title V, Sec. 511, as added
    Pub. L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat.
    674, established program of grants for National Teacher Academies,
    prior to the general amendment of this subchapter by Pub. L. 105-
    244.
      Another prior section 1103, Pub. L. 89-329, title V, Sec. 511, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1496, set forth statement of purpose for former part A of
    this subchapter relating to midcareer teacher training for
    nontraditional students, prior to the general amendment of this
    subchapter by Pub. L. 102-325.
      Another prior section 1103, Pub. L. 89-329, title V, Sec. 513,
    Nov. 8, 1965, 79 Stat. 1256; Pub. L. 90-35, Sec. 3(a)(3), (c)-(f),
    June 29, 1967, 81 Stat. 85, 86; Pub. L. 91-230, title VIII, Secs.
    803, 804(c), (d), 805(b), Apr. 13, 1970, 84 Stat. 190, 191; Pub. L.
    93-380, title VIII, Sec. 835(a)(2), (3), Aug. 21, 1974, 88 Stat.
    605; Pub. L. 94-482, title I, Secs. 151(a)(5)(C), 152(b)-(d), Oct.
    12, 1976, 90 Stat. 2152, 2153; Pub. L. 96-374, title V, Sec. 502(a)-
    (d), title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1459,
    1503, related to recruitment, enrollment, training, etc., of
    members for program, prior to repeal by Pub. L. 97-35, title V,
    Sec. 587(a)(2), Aug. 13, 1981, 95 Stat. 480.
      A prior section 511 of Pub. L. 89-329 was classified to section
    1101 of this title prior to repeal by Pub. L. 97-35.

-End-



-CITE-
    20 USC Sec. 1103a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part B - General Provisions

-HEAD-
    Sec. 1103a. Waiver authority and reporting requirement

-STATUTE-
    (a) Waiver requirements; need-based assistance students
      The Secretary may waive the requirements set forth in section
    1101a(a)(2)(A)(i) of this title in the case of an institution - 
        (1) that is extensively subsidized by the State in which the
      institution is located and charges low or no tuition;
        (2) that serves a substantial number of low-income students as
      a percentage of the institution's total student population;
        (3) that 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; or
        (5) wherever located, if the Secretary determines that the
      waiver will substantially increase higher education opportunities
      appropriate to the needs of Hispanic Americans.
    (b) Waiver determinations; expenditures
      (1) Waiver determinations
        The Secretary may waive the requirements set forth in section
      1101a(a)(2)(A)(ii) of this title if the Secretary determines,
      based on persuasive evidence submitted by the institution, that
      the institution's failure to meet the requirements is due to
      factors which, when used in the determination of compliance with
      the requirements, 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
      this subchapter.
      (2) Expenditures
        The Secretary shall submit to Congress every other year a
      report concerning the institutions that, although not satisfying
      the requirements of section 1101a(a)(2)(A)(ii) of this title,
      have been determined to be eligible institutions under part A of
      this subchapter. Such report shall - 
          (A) identify the factors referred to in paragraph (1) that
        were considered by the Secretary as factors that distorted the
        determination of compliance with clauses (i) and (ii) of
        section 1101a(a)(2)(A) of this title; and
          (B) contain a list of each institution determined to be an
        eligible institution under part A of this subchapter including
        a statement of the reasons for each such determination.

-SOURCE-
    (Pub. L. 89-329, title V, Sec. 512, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1772.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1103a, Pub. L. 89-329, title V, Sec. 512, as
    added Pub. L. 102-325, title V, Sec. 501(a), July 23, 1992, 106
    Stat. 674, related to eligible recipients, prior to the general
    amendment of this subchapter by Pub. L. 105-244.
      Another prior section 1103a, Pub. L. 89-329, title V, Sec. 512,
    as added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1496, related to selection procedures for grants to
    institutions offering midcareer teacher training for nontraditional
    students, prior to the general amendment of this subchapter by Pub.
    L. 102-325.
      A prior section 512 of Pub. L. 89-329 was classified to section
    1102 of this title prior to repeal by Pub. L. 97-35.

-End-



-CITE-
    20 USC Sec. 1103b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part B - General Provisions

-HEAD-
    Sec. 1103b. Application review process

-STATUTE-
    (a) Review panel
      All applications submitted under this subchapter by Hispanic-
    serving institutions shall be read by a panel of readers composed
    of individuals who are selected by the Secretary and who include
    individuals representing Hispanic-serving institutions. The
    Secretary shall ensure that no individual assigned under this
    section to review any application has any conflict of interest with
    regard to the application that might impair the impartiality with
    which the individual conducts the review under this section.
    (b) Instruction
      All readers selected by the Secretary shall receive thorough
    instruction from the Secretary regarding the evaluation process for
    applications submitted under this subchapter that are consistent
    with the provisions of this subchapter, including - 
        (1) an enumeration of the factors to be used to determine the
      quality of applications submitted under this subchapter; and
        (2) 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.
    (c) 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.
    (d) Notification
      Not later than June 30 of each year, the Secretary shall notify
    each Hispanic-serving institution making an application under this
    subchapter of - 
        (1) the scores given the institution 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.

-SOURCE-
    (Pub. L. 89-329, title V, Sec. 513, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1772.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1103b, Pub. L. 89-329, title V, Sec. 513, as
    added Pub. L. 102-325, title V, Sec. 501(a), July 23, 1992, 106
    Stat. 674, related to use of funds, prior to the general amendment
    of this subchapter by Pub. L. 105-244.
      Another prior section 1103b, Pub. L. 89-329, title V, Sec. 513,
    as added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1497, related to review of applications for grants, prior to
    the general amendment of this subchapter by Pub. L. 102-325.
      A prior section 513 of Pub. L. 89-329 was classified to section
    1103 of this title prior to repeal by Pub. L. 97-35.

-End-



-CITE-
    20 USC Sec. 1103c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part B - General Provisions

-HEAD-
    Sec. 1103c. Cooperative arrangements

-STATUTE-
    (a) General authority
      The Secretary may make grants to encourage cooperative
    arrangements with funds available to carry out this subchapter,
    between Hispanic-serving institutions eligible for assistance under
    this subchapter, and between such institutions and institutions not
    receiving assistance under this subchapter, for the activities
    described in section 1101b of this title so that the resources of
    the cooperating institutions might be combined and shared in order
    to achieve the purposes of this subchapter, to avoid costly
    duplicative efforts, and to enhance the development of Hispanic-
    serving 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
    Hispanic-serving institution.
    (c) Duration
      Grants to Hispanic-serving institutions having a cooperative
    arrangement may be made under this section for a period determined
    under section 1101d of this title.

-SOURCE-
    (Pub. L. 89-329, title V, Sec. 514, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1773.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1103c, Pub. L. 89-329, title V, Sec. 514, as
    added Pub. L. 102-325, title V, Sec. 501(a), July 23, 1992, 106
    Stat. 675, related to applications for grants, prior to the general
    amendment of this subchapter by Pub. L. 105-244.
      Another prior section 1103c, Pub. L. 89-329, title V, Sec. 514,
    as added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1497, related to amount of grants to institutions offering
    midcareer teacher training for nontraditional students, prior to
    the general amendment of this subchapter by Pub. L. 102-325.
      A prior section 514 of Pub. L. 89-329 was classified to section
    1104 of this title prior to repeal by Pub. L. 97-35.

-End-



-CITE-
    20 USC Sec. 1103d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part B - General Provisions

-HEAD-
    Sec. 1103d. Assistance to institutions under other programs

-STATUTE-
    (a) Assistance eligibility
      Each Hispanic-serving institution that the Secretary determines
    to be an institution eligible under this subchapter may be eligible
    for waivers in accordance with subsection (b) of this section.
    (b) Waiver applicability
      (1) In general
        Subject to, and in accordance with, regulations promulgated for
      the purpose of this section, in the case of any application by a
      Hispanic-serving 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) Programs
        The provisions of this section shall apply to any program
      authorized by subchapter IV of this chapter and part C of
      subchapter I of chapter 34 of title 42 or section 1124 of this
      title.
    (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 V, Sec. 515, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1773.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1103d, Pub. L. 89-329, title V, Sec. 515, as
    added Pub. L. 102-325, title V, Sec. 501(a), July 23, 1992, 106
    Stat. 676, related to State delegations to National Teacher
    Academies, prior to the general amendment of this subchapter by
    Pub. L. 105-244.
      Another prior section 1103d, Pub. L. 89-329, title V, Sec. 515,
    as added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1497, required reports to Secretary from institutions
    receiving grants, prior to the general amendment of this subchapter
    by Pub. L. 102-325.
      A prior section 515 of Pub. L. 89-329 was classified to section
    1105 of this title prior to repeal by Pub. L. 97-35.

-End-



-CITE-
    20 USC Sec. 1103e                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part B - General Provisions

-HEAD-
    Sec. 1103e. Limitations

-STATUTE-
      The funds appropriated under section 1103g of this title may not
    be used - 
        (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 a Hispanic-
      serving institution;
        (3) for an activity that is inconsistent with a State plan of
      higher education applicable to a Hispanic-serving institution; or
        (4) for purposes other than the purposes set forth in the
      approved application under which the funds were made available to
      a Hispanic-serving institution.

-SOURCE-
    (Pub. L. 89-329, title V, Sec. 516, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1774.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1103e, Pub. L. 89-329, title V, Sec. 516, as
    added Pub. L. 102-325, title V, Sec. 501(a), July 23, 1992, 106
    Stat. 676, related to selection of participants in National Teacher
    Academies, prior to the general amendment of this subchapter by
    Pub. L. 105-244.
      A prior section 516 of Pub. L. 89-329 was classified to section
    1106 of this title prior to repeal by Pub. L. 97-35.

-End-



-CITE-
    20 USC Sec. 1103f                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part B - General Provisions

-HEAD-
    Sec. 1103f. 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
    that 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 V, Sec. 517, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1774.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1103f, Pub. L. 89-329, title V, Sec. 517, as
    added Pub. L. 102-325, title V, Sec. 501(a), July 23, 1992, 106
    Stat. 677, related to evaluation of system of National Teacher
    Academies, prior to the general amendment of this subchapter by
    Pub. L. 105-244.
      A prior section 517 of Pub. L. 89-329 was classified to section
    1107 of this title prior to repeal by Pub. L. 97-35.

-End-



-CITE-
    20 USC Sec. 1103g                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER V - DEVELOPING INSTITUTIONS
    Part B - General Provisions

-HEAD-
    Sec. 1103g. Authorizations of appropriations

-STATUTE-
    (a) Authorizations
      There are authorized to be appropriated to carry out this
    subchapter $62,500,000 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 Hispanic-serving
    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 institution.

-SOURCE-
    (Pub. L. 89-329, title V, Sec. 518, as added Pub. L. 105-244, title
    V, Sec. 501, Oct. 7, 1998, 112 Stat. 1774.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1103g, Pub. L. 89-329, title V, Sec. 518, as
    added Pub. L. 102-325, title V, Sec. 501(a), July 23, 1992, 106
    Stat. 677, authorized appropriations for National Teacher Academies
    program, prior to the general amendment of this subchapter by Pub.
    L. 105-244.
      A prior section 518 of Pub. L. 89-329 was classified to section
    1108 of this title prior to repeal by Pub. L. 94-482.
      Prior sections 1104 to 1104k, 1105 to 1105i, 1106 to 1106g, and
    1107 were omitted in the general amendment of this subchapter by
    Pub. L. 105-244.
      Section 1104, Pub. L. 89-329, title V, Sec. 521, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 677,
    related to purpose of Paul Douglas Teacher Scholarship program and
    provided that scholarships be referred to as "Paul Douglas Teacher
    Scholarships".
      A prior section 1104, Pub. L. 89-329, title V, Sec. 514, Nov. 8,
    1965, 79 Stat. 1257; Pub. L. 90-35, Sec. 3(a)(3), (g)(1), June 29,
    1967, 81 Stat. 85, 86; Pub. L. 90-575, title II, Sec. 232, Oct. 16,
    1968, 82 Stat. 1039; Pub. L. 91-230, title VIII, Secs. 804(e),
    805(c), Apr. 13, 1970, 84 Stat. 191, 192; Pub. L. 93-380, title
    VIII, Sec. 835(a)(4), Aug. 21, 1974, 88 Stat. 605; Pub. L. 94-482,
    title I, Sec. 152(e), Oct. 12, 1976, 90 Stat. 2153; Pub. L. 96-374,
    title V, Sec. 502(e), title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94
    Stat. 1459, 1503, set forth provisions respecting compensation of
    program members, prior to repeal by Pub. L. 97-35, title V, Sec.
    587(a)(2), Aug. 13, 1981, 95 Stat. 480, eff. Oct. 1, 1982.
      Section 1104a, Pub. L. 89-329, title V, Sec. 522, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 677,
    related to allocation among States.
      Section 1104b, Pub. L. 89-329, title V, Sec. 523, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 678,
    related to State applications for grants.
      Section 1104c, Pub. L. 89-329, title V, Sec. 524, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 680,
    related to amount and duration of scholarships and relation to
    other assistance.
      Section 1104d, Pub. L. 89-329, title V, Sec. 525, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 680;
    amended Pub. L. 103-208, Sec. 2(j)(2), Dec. 20, 1993, 107 Stat.
    2480, related to selection of Paul Douglas Teacher Scholars.
      Section 1104e, Pub. L. 89-329, title V, Sec. 526, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 681,
    related to scholarship conditions.
      Section 1104f, Pub. L. 89-329, title V, Sec. 527, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 681,
    related to scholarship repayment provisions.
      Section 1104g, Pub. L. 89-329, title V, Sec. 528, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 681,
    related to exceptions to repayment provisions.
      Section 1104h, Pub. L. 89-329, title V, Sec. 529, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 682,
    related to Federal administration of State programs and judicial
    review.
      Section 1104i, Pub. L. 89-329, title V, Sec. 530, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 682,
    related to evaluation of scholarship recipients.
      Section 1104j, Pub. L. 89-329, title V, Sec. 530A, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 683;
    amended Pub. L. 103-208, Sec. 2(j)(3), Dec. 20, 1993, 107 Stat.
    2481, related to designation of shortage areas.
      Section 1104k, Pub. L. 89-329, title V, Sec. 530B, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 683,
    authorized appropriations for Paul Douglas Teacher Scholarship
    program.
      Section 1105, Pub. L. 89-329, title V, Sec. 531, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 684,
    related to purpose of Christa McAuliffe fellowship program and
    provided that fellowship recipients be known as "Christa McAuliffe
    fellows".
      A prior section 1105, Pub. L. 89-329, title V, Sec. 521, as added
    Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat.
    1498, provided that the purpose of former part B of this subchapter
    was to encourage partnerships between institutions of higher
    education and secondary schools serving low-income students, prior
    to the general amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1105, Pub. L. 89-329, title V, Sec. 515,
    Nov. 8, 1965, 79 Stat. 1257; Pub. L. 90-35, Sec. 3(h), June 29,
    1967, 81 Stat. 87; Pub. L. 90-83, Sec. 10(b), Sept. 11, 1967, 81
    Stat. 223, related to applicability of other provisions of laws to
    members of the Teacher Corps, prior to repeal by Pub. L. 97-35,
    title V, Sec. 587(a)(2), Aug. 13, 1981, 95 Stat. 480, eff. Oct. 1,
    1982.
      Section 1105a, Pub. L. 89-329, title V, Sec. 532, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 684,
    authorized grants to State education agencies for Christa McAuliffe
    fellowship program.
      A prior section 1105a, Pub. L. 89-329, title V, Sec. 522, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1498, related to partnership agreements between institutions
    of higher education and secondary schools serving low-income
    students, prior to the general amendment of this subchapter by Pub.
    L. 102-325.
      Section 1105b, Pub. L. 89-329, title V, Sec. 533, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 684,
    related to award and use of Christa McAuliffe fellowships.
      A prior section 1105b, Pub. L. 89-329, title V, Sec. 523, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1498, related to grants to encourage partnerships between
    institutions of higher education and secondary schools serving low-
    income students, prior to the general amendment of this subchapter
    by Pub. L. 102-325.
      Section 1105c, Pub. L. 89-329, title V, Sec. 534, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 685,
    related to selection of Christa McAuliffe fellows.
      A prior section 1105c, Pub. L. 89-329, title V, Sec. 524, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1499, related to application for grants to encourage the
    partnership between institutions of higher education and secondary
    schools serving low-income students, prior to the general amendment
    of this subchapter by Pub. L. 102-325.
      Section 1105d, Pub. L. 89-329, title V, Sec. 535, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 685;
    amended Pub. L. 103-208, Sec. 2(j)(4), Dec. 20, 1993, 107 Stat.
    2481, related to evaluation of applications.
      A prior section 1105d, Pub. L. 89-329, title V, Sec. 525, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1499, related to the community college pilot project, prior
    to the general amendment of this subchapter by Pub. L. 102-325.
      Section 1105e, Pub. L. 89-329, title V, Sec. 536, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 686,
    related to fellowship repayment provisions.
      Section 1105f, Pub. L. 89-329, title V, Sec. 537, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 686;
    amended Pub. L. 103-208, Sec. 2(j)(5), Dec. 20, 1993, 107 Stat.
    2481, related to Secretary's responsibilities.
      Section 1105g, Pub. L. 89-329, title V, Sec. 538, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 686,
    related to State applications for grants.
      Section 1105h, Pub. L. 89-329, title V, Sec. 539, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 687,
    related to evaluation of Christa McAuliffe fellows and their
    impact.
      Section 1105i, Pub. L. 89-329, title V, Sec. 540, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 687,
    authorized appropriations to carry out Christa McAuliffe fellowship
    program.
      Section 1106, Pub. L. 89-329, title V, Sec. 541, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 687,
    authorized Teacher Corps program.
      A prior section 1106, Pub. L. 89-329, title V, Sec. 516, Nov. 8,
    1965, 79 Stat. 1258, related to supervision and control of members
    by local educational agencies, prior to repeal by Pub. L. 97-35,
    title V, Sec. 587(a)(2), Aug. 13, 1981, 95 Stat. 480, eff. Oct. 1,
    1982.
      Section 1106a, Pub. L. 89-329, title V, Sec. 542, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 688,
    related to use of funds.
      Section 1106b, Pub. L. 89-329, title V, Sec. 543, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 689,
    related to selection of Teacher Corps members.
      Section 1106c, Pub. L. 89-329, title V, Sec. 544, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 690,
    related to State applications for funds.
      Section 1106d, Pub. L. 89-329, title V, Sec. 545, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 690;
    amended Pub. L. 103-208, Sec. 2(j)(6), Dec. 20, 1993, 107 Stat.
    2481, related to Teacher Corps scholarships.
      Section 1106e, Pub. L. 89-329, title V, Sec. 546, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 691,
    related to scholarship conditions.
      Section 1106f, Pub. L. 89-329, title V, Sec. 547, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 693,
    related to publication and recruitment.
      Section 1106g, Pub. L. 89-329, title V, Sec. 548, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 693,
    authorized appropriations for Teacher Corps program.
      Section 1107, Pub. L. 89-329, title V, Sec. 551, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 693;
    amended Pub. L. 103-227, title X, Sec. 1013, Mar. 31, 1994, 108
    Stat. 265, related to National Board for Professional Teaching
    Standards.
      A prior section 1107, Pub. L. 89-329, title V, Sec. 531, as added
    Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat.
    1500, related to purpose and authority for professional development
    resource centers program, prior to the general amendment of this
    subchapter by Pub. L. 102-325.
      Another prior section 1107, Pub. L. 89-329, title V, Sec. 517,
    Nov. 8, 1965, 79 Stat. 1258; Pub. L. 90-35, Sec. 3(a)(3), June 29,
    1967, 81 Stat. 85, prohibited members of the Teacher Corps from
    acting as replacements for teachers, prior to repeal by Pub. L. 97-
    35, title V, Sec. 587(a)(2), Aug. 13, 1981, 95 Stat. 480, eff.
    Oct. 1, 1982.
      Prior sections 1107a to 1107d were omitted in the general
    amendment of this subchapter by Pub. L. 102-325.
      Section 1107a, Pub. L. 89-329, title V, Sec. 532, as added Pub.
    L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat. 1501,
    related to geographical distribution of grants to establish and
    operate professional development resource centers.
      Another prior section 1107a, Pub. L. 89-329, title V, Sec. 517A,
    as added Pub. L. 90-35, Sec. 3(i), June 29, 1967, 81 Stat. 87,
    related to teaching children of migratory agricultural workers,
    prior to repeal by Pub. L. 97-35, title V, Sec. 587(a)(2), Aug. 13,
    1981, 95 Stat. 480, eff. Oct. 1, 1982.
      Section 1107b, Pub. L. 89-329, title V, Sec. 533, as added Pub.
    L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat. 1501,
    related to grant requirements for professional development resource
    centers.
      Section 1107c, Pub. L. 89-329, title V, Sec. 534, as added Pub.
    L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat. 1502,
    related to requirement for professional development policy boards.
      Section 1107d, Pub. L. 89-329, title V, Sec. 535, as added Pub.
    L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat. 1502,
    related to submission and approval of applications for grants to
    establish and operate professional development resource centers.
      Prior sections 1108 to 1108g were repealed by Pub. L. 102-325,
    title V, Sec. 501(b), July 23, 1992, 106 Stat. 719, effective July
    1, 1995.
      Section 1108, Pub. L. 89-329, title V, Sec. 552, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 698,
    provided that subpart 2 of former part D of this subchapter could
    be cited as the "Alternative Routes to Teacher Certification and
    Licensure Act of 1992".
      A prior section 1108, Pub. L. 89-329, title V, Sec. 518, as added
    Pub. L. 90-35, Sec. 4, June 29, 1967, 81 Stat. 87; amended Pub. L.
    90-575, title II, Secs. 231(a), 233(a), Oct. 16, 1968, 82 Stat.
    1039; Pub. L. 92-318, title I, Secs. 141(a)(1)(B), (c)(1)(D),
    (2)(A), 143(a)(1), June 23, 1972, 86 Stat. 284-286, authorized a
    program for making grants to States to alleviate teacher shortages,
    prior to repeal by Pub. L. 94-482, title I, Sec. 151(a)(4)(A), Oct.
    12, 1976, 90 Stat. 2152, eff. Sept. 30, 1976.
      Section 1108a, Pub. L. 89-329, title V, Sec. 553, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 698,
    provided congressional findings concerning alternative teacher
    certification and licensure.
      Section 1108b, Pub. L. 89-329, title V, Sec. 554, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 698,
    stated purpose of subpart 2 of former part D of this subchapter.
      Section 1108c, Pub. L. 89-329, title V, Sec. 555, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 699,
    provided for allotments of funds to States.
      Section 1108d, Pub. L. 89-329, title V, Sec. 556, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 699;
    amended Pub. L. 103-382, title II, Sec. 261(i)(2), Oct. 20, 1994,
    108 Stat. 3929, related to State applications for grants under
    subpart 2 of former part D of this subchapter.
      Section 1108e, Pub. L. 89-329, title V, Sec. 557, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 700,
    outlined permissible uses of funds.
      Section 1108f, Pub. L. 89-329, title V, Sec. 558, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 700,
    defined "State" for purposes of subpart 2 of former part D of this
    subchapter.
      Section 1108g, Pub. L. 89-329, title V, Sec. 559, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 700,
    authorized appropriations for fiscal year 1993 to carry out subpart
    2 of former part D of this subchapter.
      Prior sections 1109 to 1109e, 1110 to 1110e, 1111 to 1111h, 1112
    to 1112e, and 1113 were omitted in the general amendment of this
    subchapter by Pub. L. 105-244.
      Section 1109, Pub. L. 89-329, title V, Sec. 561, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 700, set
    forth purpose of class size demonstration grant program.
      A prior section 1109, Pub. L. 89-329, title V, Sec. 541, as added
    Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat.
    1503; amended Pub. L. 100-50, Sec. 16(1), June 3, 1987, 101 Stat.
    358; Pub. L. 101-226, Sec. 20, Dec. 12, 1989, 103 Stat. 1936,
    related to purpose of, and regulations under, leadership in
    educational administration development program, prior to the
    general amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1109, Pub. L. 89-329, title V, Sec. 519, as
    added Pub. L. 90-35, Sec. 4, June 29, 1967, 81 Stat. 88; amended
    Pub. L. 90-575, title II, Sec. 234(a), Oct. 16, 1968, 82 Stat.
    1039; Pub. L. 92-318, title I, Sec. 141(c)(2)(B), June 23, 1972, 86
    Stat. 285, authorized allotments and reallotments to States, etc.,
    for grants for implementation of program and set forth criteria for
    determination of amounts, prior to repeal by Pub. L. 94-482, title
    I, Sec. 151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152, eff. Sept. 30,
    1976.
      Section 1109a, Pub. L. 89-329, title V, Sec. 562, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 700,
    authorized program of grants for demonstration projects that
    demonstrate methods of reducing class size.
      A prior section 1109a, Pub. L. 89-329, title V, Sec. 542, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1504; amended Pub. L. 100-50, Sec. 16(2), June 3, 1987, 101
    Stat. 358, related to allocation of appropriations for leadership
    in educational administration development program, prior to the
    general amendment of this subchapter by Pub. L. 102-325.
      Section 1109b, Pub. L. 89-329, title V, Sec. 563, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 701,
    related to program requirements.
      A prior section 1109b, Pub. L. 89-329, title V, Sec. 543, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1504; amended Pub. L. 100-50, Sec. 16(3), June 3, 1987, 101
    Stat. 358, related to technical assistance centers under leadership
    in educational administration development program, prior to the
    general amendment of this subchapter by Pub. L. 102-325.
      Section 1109c, Pub. L. 89-329, title V, Sec. 564, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 701,
    related to applications for grants.
      A prior section 1109c, Pub. L. 89-329, title V, Sec. 544, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1505; amended Pub. L. 100-50, Sec. 16(4), June 3, 1987, 101
    Stat. 359, related to general criteria for grants under leadership
    in educational administration development program, prior to the
    general amendment of this subchapter by Pub. L. 102-325.
      Section 1109d, Pub. L. 89-329, title V, Sec. 565, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 702,
    related to evaluation of demonstration projects and dissemination
    of information.
      A prior section 1109d, Pub. L. 89-329, title V, Sec. 545, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1505; amended Pub. L. 100-50, Sec. 16(5), June 3, 1987, 101
    Stat. 359, defined terms for purposes of leadership in educational
    administration development program, prior to the general amendment
    of this subchapter by Pub. L. 102-325.
      Section 1109e, Pub. L. 89-329, title V, Sec. 565A, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 702,
    authorized appropriations for class size demonstration grant
    program.
      Section 1110, Pub. L. 89-329, title V, Sec. 566, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 703, stated
    purpose of middle school teaching demonstration grant program.
      A prior section 1110, Pub. L. 89-329, title V, Sec. 520, as added
    Pub. L. 90-35, Sec. 4, June 29, 1967, 81 Stat. 88; amended Pub. L.
    90-575, title II, Sec. 233(b), Oct. 16, 1968, 82 Stat. 1039; Pub.
    L. 92-318, title I, Secs. 143(a)(2), (3), 144(a), 145(a), 146(a),
    June 23, 1972, 86 Stat. 286, 287, set forth requirements for State
    plans as prerequisite for receipt of grant by State, prior to
    repeal by Pub. L. 94-482, title I, Sec. 151(a)(4)(A), Oct. 12,
    1976, 90 Stat. 2152, eff. Sept. 30, 1976.
      Section 1110a, Pub. L. 89-329, title V, Sec. 567, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 703,
    defined "developmentally appropriate" and "middle school".
      A prior section 1110a, Pub. L. 89-329, title V, Sec. 520A, as
    added Pub. L. 90-35, Sec. 4, June 29, 1967, 81 Stat. 89, set forth
    manner of repayment of amounts expended by each State for
    implementation of State plan, prior to repeal by Pub. L. 94-482,
    title I, Sec. 151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152, eff.
    Sept. 30, 1976.
      Section 1110b, Pub. L. 89-329, title V, Sec. 568, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 703,
    authorized program of grants for development of model programs with
    specialized focus on teaching grades 6 through 9.
      A prior section 1110b, Pub. L. 89-329, title V, Sec. 520B, as
    added Pub. L. 90-35, Sec. 4, June 29, 1967, 81 Stat. 89, set forth
    requirements for disapproval of State plans by Commissioner, prior
    to repeal by Pub. L. 94-482, title I, Sec. 151(a)(4)(A), Oct. 12,
    1976, 90 Stat. 2152, eff. Sept. 30, 1976.
      Section 1110c, Pub. L. 89-329, title V, Sec. 569, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 703,
    related to applications for grants.
      A prior section 1110c, Pub. L. 89-329, title V, Sec. 520C, as
    added Pub. L. 90-35, Sec. 4, June 29, 1967, 81 Stat. 90, set forth
    procedure for judicial review of determinations of Commissioner
    with respect to State plan, prior to repeal by Pub. L. 94-482,
    title I, Sec. 151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152, eff.
    Sept. 30, 1976.
      Section 1110d, Pub. L. 89-329, title V, Sec. 570, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 704,
    related to submission of reports and other information by grant
    recipients.
      Section 1110e, Pub. L. 89-329, title V, Sec. 570A, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 704,
    authorized appropriations for middle school teaching demonstration
    grant program.
      Section 1111, Pub. L. 89-329, title V, Sec. 571, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 704, stated
    purpose of new teaching careers grant program.
      A prior section 1111, Pub. L. 89-329, title V, Sec. 551, as added
    Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat.
    1506; amended Pub. L. 100-50, Sec. 17(a), June 3, 1987, 101 Stat.
    359, set forth purpose of Congressional teacher scholarship
    program, prior to the general amendment of this subchapter by Pub.
    L. 102-325.
      Another prior section 1111, Pub. L. 89-329, title V, Sec. 521,
    Nov. 8, 1965, 79 Stat. 1258; Pub. L. 90-35, Sec. 5(b), June 29,
    1967, 81 Stat. 90; Pub. L. 90-247, title VII, Sec. 704(a), Jan. 2,
    1968, 81 Stat. 820; Pub. L. 90-575, title II, Sec. 235, Oct. 16,
    1968, 82 Stat. 1040; Pub. L. 91-230, title VIII, Sec. 806(a), Apr.
    13, 1970, 84 Stat. 192; Pub. L. 92-318, title I, Sec. 146A, June
    23, 1972, 86 Stat. 287, set forth Congressional declaration of
    policy and statement of purpose, and definitions for fellowship
    program for teachers and related educational personnel, prior to
    repeal by Pub. L. 94-482, title I, Sec. 151(a)(4)(A), Oct. 12,
    1976, 90 Stat. 2152, eff. Sept. 30, 1976.
      Section 1111a, Pub. L. 89-329, title V, Sec. 572, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 704;
    amended Pub. L. 103-382, title III, Sec. 391(e)(5), Oct. 20, 1994,
    108 Stat. 4022, authorized grants to States.
      A prior section 1111a, Pub. L. 89-329, title V, Sec. 552, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1506, related to allocation of funds among the States for
    Congressional teacher scholarships, prior to the general amendment
    of this subchapter by Pub. L. 102-325.
      Section 1111b, Pub. L. 89-329, title V, Sec. 573, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 705,
    related to agreements with grant recipients.
      A prior section 1111b, Pub. L. 89-329, title V, Sec. 553, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1506; amended Pub. L. 100-50, Sec. 17(b), June 3, 1987, 101
    Stat. 359, related to grant applications for Congressional teacher
    scholarships, prior to the general amendment of this subchapter by
    Pub. L. 102-325.
      Section 1111c, Pub. L. 89-329, title V, Sec. 574, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 705,
    related to applications for grants.
      A prior section 1111c, Pub. L. 89-329, title V, Sec. 554, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1508, related to amount and duration of assistance under
    Congressional teacher fellowships and relationship of such
    assistance to other assistance, prior to the general amendment of
    this subchapter by Pub. L. 102-325.
      Section 1111d, Pub. L. 89-329, title V, Sec. 575, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 706,
    related to requirements of recipients of student financial
    assistance under programs.
      A prior section 1111d, Pub. L. 89-329, title V, Sec. 555, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1508, related to the selection of Congressional teacher
    scholars, prior to the general amendment of this subchapter by Pub.
    L. 102-325.
      Section 1111e, Pub. L. 89-329, title V, Sec. 576, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 707,
    related to special considerations in awarding grants.
      A prior section 1111e, Pub. L. 89-329, title V, Sec. 556, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1509, related to conditions for Congressional teacher
    scholarships, prior to the general amendment of this subchapter by
    Pub. L. 102-325.
      Section 1111f, Pub. L. 89-329, title V, Sec. 576A, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 707,
    related to use of funds by grant recipients.
      A prior section 1111f, Pub. L. 89-329, title V, Sec. 557, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1509; amended Pub. L. 100-50, Sec. 17(c), June 3, 1987, 101
    Stat. 359, related to Congressional teacher scholarship repayment
    provisions, prior to the general amendment of this subchapter by
    Pub. L. 102-325.
      Section 1111g, Pub. L. 89-329, title V, Sec. 576B, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 707,
    defined terms.
      A prior section 1111g, Pub. L. 89-329, title V, Sec. 558, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1509; amended Pub. L. 100-50, Sec. 17(d), June 3, 1987, 101
    Stat. 359, related to exceptions to Congressional teacher
    scholarship repayment provisions, prior to the general amendment of
    this subchapter by Pub. L. 102-325.
      Section 1111h, Pub. L. 89-329, title V, Sec. 576C, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 708,
    authorized appropriations for new teaching careers grant program.
      A prior section 1111h, Pub. L. 89-329, title V, Sec. 559, as
    added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100
    Stat. 1510, related to Federal administration of State programs and
    judicial review of Congressional teacher scholarship programs,
    prior to the general of this subchapter by Pub. L. 102-325.
      Section 1112, Pub. L. 89-329, title V, Sec. 577, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 708, stated
    purpose of grant program to encourage minority students to become
    teachers.
      A prior section 1112, Pub. L. 89-329, title V, Sec. 522, Nov. 8,
    1965, 79 Stat. 1258; Pub. L. 90-35, Sec. 5(c), June 29, 1967, 81
    Stat. 91; Pub. L. 90-247, title VII, Sec. 704(b), Jan. 2, 1968, 81
    Stat. 820, authorized Commissioner to award fellowships for
    graduate study by teaching personnel, prior to repeal by Pub. L. 94-
    482, title I, Sec. 151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152,
    eff. Sept. 30, 1976.
      Section 1112a, Pub. L. 89-329, title V, Sec. 578, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 708,
    authorized grants for partnerships.
      Section 1112b, Pub. L. 89-329, title V, Sec. 579, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 708,
    related to partnership agreements.
      Section 1112c, Pub. L. 89-329, title V, Sec. 580, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 709,
    related to applications for teacher partnership program grants.
      Section 1112d, Pub. L. 89-329, title V, Sec. 580A, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 710,
    authorized grants for teacher training and placement programs.
      Section 1112e, Pub. L. 89-329, title V, Sec. 580B, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 710;
    amended Pub. L. 103-208, Sec. 2(j)(7), Dec. 20, 1993, 107 Stat.
    2481, authorized appropriations for programs under sections 1112a
    and 1112d of this title.
      Section 1113, Pub. L. 89-329, title V, Sec. 581, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 711;
    amended Pub. L. 103-208, Sec. 2(j)(8), Dec. 20, 1993, 107 Stat.
    2481; Pub. L. 103-382, title III, Sec. 391(e)(6), (7), Oct. 20,
    1994, 108 Stat. 4022, 4023, authorized grants for partnerships to
    carry out National Mini Corps Program.
      A prior section 1113, Pub. L. 89-329, title V, Sec. 561, as added
    Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat.
    1510, related to purpose of Christa McAuliffe fellowship program
    and to designation of fellowships under such program, prior to the
    general amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1113, Pub. L. 89-329, title V, Sec. 523,
    Nov. 8, 1965, 79 Stat. 1259; Pub. L. 90-35, Sec. 5(d), June 29,
    1967, 81 Stat. 91; Pub. L. 90-575, title II, Sec. 236, Oct. 16,
    1968, 82 Stat. 1040, required allocation of fellowships to
    institutions with approved programs and set forth criteria for
    approval of programs, prior to repeal by Pub. L. 94-482, title I,
    Sec. 151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152, eff. Sept. 30,
    1976.
      Prior sections 1113a to 1113e were omitted in the general
    amendment of this subchapter by Pub. L. 102-325.
      Section 1113a, Pub. L. 89-329, title V, Sec. 562, as added Pub.
    L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat. 1511,
    related to use of funds for Christa McAuliffe fellowship program.
      Section 1113b, Pub. L. 89-329, title V, Sec. 563, as added Pub.
    L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat. 1511,
    related to award, distribution, and use of Christa McAuliffe
    fellowships.
      Section 1113c, Pub. L. 89-329, title V, Sec. 564, as added Pub.
    L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat. 1511,
    related to selection of Christa McAuliffe teacher fellowships.
      Section 1113d, Pub. L. 89-329, title V, Sec. 565, as added Pub.
    L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat. 1511,
    related to evaluation of applications for Christa McAuliffe
    fellowships.
      Section 1113e, Pub. L. 89-329, title V, Sec. 566, as added Pub.
    L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat. 1512,
    related to repayment of Christa McAuliffe fellowships.
      Prior sections 1114, 1114a, 1115, 1116, and 1117 to 1117c were
    omitted in the general amendment of this subchapter by Pub. L. 105-
    244.
      Section 1114, Pub. L. 89-329, title V, Sec. 586, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 712;
    amended Pub. L. 103-382, title III, Sec. 391(e)(8), (9), Oct. 20,
    1994, 108 Stat. 4023, authorized demonstration grants for critical
    language and area studies.
      A prior section 1114, Pub. L. 89-329, title V, Sec. 524, Nov. 8,
    1965, 79 Stat. 1259; Pub. L. 90-35, Sec. 5(e), June 29, 1967, 81
    Stat. 91; Pub. L. 90-575, title II, Sec. 237, Oct. 16, 1968, 82
    Stat. 1040, set forth prerequisites for approval of graduate
    programs to develop and strengthen training of educational
    personnel, prior to repeal by Pub. L. 94-482, title I, Sec.
    151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152, eff. Sept. 30, 1976.
      Section 1114a, Pub. L. 89-329, title V, Sec. 587, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 714,
    related to development of foreign language and culture
    instructional materials.
      Section 1115, Pub. L. 89-329, title V, Sec. 591, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 714,
    authorized grants for development of model programs for educational
    excellence, teacher training, and educational reform.
      A prior section 1115, Pub. L. 89-329, title V, Sec. 571, as added
    Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat.
    1512, related to State task forces on teacher training, prior to
    the general amendment of this subchapter by Pub. L. 102-325.
      Another prior section 1115, Pub. L. 89-329, title V, Sec. 525,
    Nov. 8, 1965, 79 Stat. 1260; Pub. L. 90-35, Sec. 5(f), June 29,
    1967, 81 Stat. 91; Pub. L. 90-575, title II, Sec. 238, Oct. 16,
    1968, 82 Stat. 1040; Pub. L. 92-318, title I, Sec. 141(c)(3), June
    23, 1972, 86 Stat. 285, authorized Commissioner to pay stipends to
    individuals awarded fellowships and additional amounts to
    institutions of higher education for support of programs, prior to
    repeal by Pub. L. 94-482, title I, Sec. 151(a)(4)(A), Oct. 12,
    1976, 90 Stat. 2152, eff. Sept. 30, 1976.
      Section 1116, Pub. L. 89-329, title V, Sec. 593, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 715,
    authorized grants for development of model programs of development
    and training of faculty who teach students with disabilities.
      A prior section 1116, Pub. L. 89-329, title V, Sec. 526, Nov. 8,
    1965, 79 Stat. 1260; Pub. L. 92-318, title I, Sec. 131(d)(2)(C),
    June 23, 1972, 86 Stat. 260, prohibited award of fellowships for
    study at divinity school or department, prior to repeal by Pub. L.
    94-482, title I, Sec. 151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152,
    eff. Sept. 30, 1976.
      Section 1117, Pub. L. 89-329, title V, Sec. 596, as added Pub. L.
    102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 716,
    authorized grants for programs to recruit and train students for
    careers in early childhood education and violence counseling.
      A prior section 1117, Pub. L. 89-329, title V, Sec. 527, Nov. 8,
    1965, 79 Stat. 1260, set forth conditions imposed upon fellowship
    recipient, prior to repeal by Pub. L. 94-482, title I, Sec.
    151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152, eff. Sept. 30, 1976.
      Section 1117a, Pub. L. 89-329, title V, Sec. 597, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 717;
    amended Pub. L. 103-208, Sec. 2(j)(9), Dec. 20, 1993, 107 Stat.
    2481, authorized grants for early childhood staff training and
    professional enhancement.
      Section 1117b, Pub. L. 89-329, title V, Sec. 598, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 719,
    required reports by grant recipients.
      Section 1117c, Pub. L. 89-329, title V, Sec. 599, as added Pub.
    L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 719,
    authorized appropriations for activities described in sections 1117
    and 1117a of this title.
      A prior section 1118, Pub. L. 89-329, title V, Sec. 528, Nov. 8,
    1965, 79 Stat. 1260; Pub. L. 90-35, Sec. 5(g), June 29, 1967, 81
    Stat. 91; Pub. L. 90-247, title VII, Sec. 704(c)(1), Jan. 2, 1968,
    81 Stat. 820; Pub. L. 90-575, title II, Sec. 231(a), (b)(2), Oct.
    16, 1968, 82 Stat. 1039; Pub. L. 92-318, title I, Sec.
    141(a)(1)(B), June 23, 1972, 86 Stat. 284, authorized
    appropriations for fiscal years 1966 to 1974 to enable persons who
    were awarded fellowships prior to July 1, 1972, to complete their
    study under fellowships, prior to repeal by Pub. L. 92-318, title
    I, Sec. 141(c)(1)(E), June 23, 1972, 86 Stat. 285, eff. on and
    after July 1, 1972.
      Prior sections 1119 to 1119e-5 provided for teacher training
    programs, training for elementary and secondary school teachers to
    teach handicapped children in areas with a shortage, coordination
    of education professional development, Carl D. Perkins Scholarship
    program, and National Talented Teacher Fellowship program, prior to
    the general amendment of this subchapter by Pub. L. 99-498.
      Section 1119 Pub. L. 89-329, title V, Sec. 531, as added Pub. L.
    94-482, title I, Sec. 153, formerly Sec. 153(a), Oct. 12, 1976, 90
    Stat. 2154, renumbered Pub. L. 95-43, Sec. 1(b)(5), June 15, 1977,
    91 Stat. 218; amended Pub. L. 95-561, title XIII, Sec. 1321(a),
    Nov. 1, 1978, 92 Stat. 2362; Pub. L. 96-49, Sec. 6(b), Aug. 13,
    1979, 93 Stat. 353; Pub. L. 96-374, title V, Secs. 501(b), 503(a),
    Oct. 3, 1980, 94 Stat. 1459, authorized appropriations for fiscal
    years 1981 to 1985 to carry out teacher training programs.
      Another prior section 1119, Pub. L. 89-329, title V, Sec. 531, as
    added Pub. L. 90-35, Sec. 6, June 29, 1967, 81 Stat. 91; amended
    Pub. L. 90-247, title VII, Sec. 704(d), Jan. 2, 1968, 81 Stat. 820;
    Pub. L. 92-318, title I, Secs. 147(a), 148(a), June 23, 1972, 86
    Stat. 287, authorized training and retraining programs for
    education personnel other than higher education personnel, prior to
    repeal by Pub. L. 94-482, title I, Sec. 151(a)(4)(A), Oct. 12,
    1976, 90 Stat. 2152, effective Sept. 30, 1976.
      Section 1119a, Pub. L. 89-329, title V, Sec. 532, as added Pub.
    L. 94-482, title I, Sec. 153, formerly Sec. 153(a), Oct. 12, 1976,
    90 Stat. 2154, renumbered Pub. L. 95-43, Sec. 1(b)(5), June 15,
    1977, 91 Stat. 218; amended Pub. L. 95-561, title XIII, Sec.
    1321(b), Nov. 1, 1978, 92 Stat. 2363; Pub. L. 96-374, title V, Sec.
    503(b), (c), title XIII, Sec. 1391(a)(1), (2), Oct. 3, 1980, 94
    Stat. 1459, 1460, 1503, related to grants, functions, etc., of
    teacher centers, prior to repeal by Pub. L. 97-35, title V, Sec.
    587(a)(2), Aug. 13, 1981, 95 Stat. 480, eff. Oct. 1, 1982.
      Another prior section 1119a, Pub. L. 89-329, title V, Sec. 532,
    as added Pub. L. 92-318, title IV, Sec. 451(b), June 23, 1972, 86
    Stat. 344, authorized teachers for Indian children as part of the
    training and retraining program, prior to repeal by Pub. L. 94-482,
    title I, Sec. 151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152, effective
    Sept. 30, 1976.
      Another prior section 1119a, Pub. L. 89-329, title V, Sec. 532,
    as added Pub. L. 90-35, Sec. 6, June 29, 1967, 81 Stat. 92; amended
    Pub. L. 90-575, title II, Sec. 231(a), Oct. 16, 1968, 82 Stat.
    1039; Pub. L. 92-318, title I, Sec. 141(a)(1)(B), June 23, 1972, 86
    Stat. 284, authorized appropriations for fiscal years 1969 to 1972,
    prior to repeal by section 141(c)(1)(F) of Pub. L. 92-318,
    effective on and after July 1, 1972.
      Section 1119a-1, Pub. L. 89-329, title V, Sec. 533, as added Pub.
    L. 94-482, title I, Sec. 153, Oct. 12, 1976, 90 Stat. 2155; amended
    Pub. L. 95-43, Sec. 1(a)(42), (b)(5), June 15, 1977, 91 Stat. 217,
    218; Pub. L. 96-374, title V, Sec. 504, Oct. 3, 1980, 94 Stat.
    1460; Pub. L. 97-300, title I, Sec. 183, Oct. 13, 1982, 96 Stat.
    1357, related to grants for training higher education personnel.
      Another prior section 1119a-1, Pub. L. 89-329, title V, Sec. 533,
    as added Pub. L. 90-575, title II, Sec. 239, Oct. 16, 1968, 82
    Stat. 1040, required an equitable distribution with respect to
    geography for training programs, prior to repeal by Pub. L. 94-482,
    title I, Sec. 151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152, effective
    Sept. 30, 1976.
      Section 1119b, Pub. L. 89-329, title V, Sec. 541, as added Pub.
    L. 96-374, title V, Sec. 505(a), Oct. 3, 1980, 94 Stat. 1461,
    authorized grants to State educational agencies to train teachers
    for handicapped children.
      Another prior section 1119b, Pub. L. 89-329, title V, Sec. 541,
    as added Pub. L. 90-35, Sec. 6, June 29, 1967, 81 Stat. 93,
    authorized grants or contracts with institutions of higher
    education for training programs and projects for higher education
    personnel, prior to repeal by Pub. L. 94-482, title I, Sec.
    151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152.
      Section 1119b-1, Pub. L. 89-329, title V, Sec. 542, as added Pub.
    L. 96-374, title V, Sec. 505(a), Oct. 3, 1980, 94 Stat. 1462,
    related to applications for grants for training teachers for
    handicapped children.
      Another prior section 1119b-1, Pub. L. 89-329, title V, Sec. 542,
    as added Pub. L. 90-35, Sec. 6, June 29, 1967, 81 Stat. 93,
    authorized the payment of stipends to persons participating in
    authorized training programs, prior to repeal by Pub. L. 94-482,
    title I, Sec. 151(a)(4)(A), Oct. 12, 1976, 90 Stat. 2152.
      Section 1119b-2, Pub. L. 89-329, title V, Sec. 543, as added Pub.
    L. 96-374, title V, Sec. 505(a), Oct. 3, 1980, 94 Stat. 1462,
    provided for stipends and allowances for participants in program of
    training teachers for handicapped children.
      Another prior section 1119b-2, Pub. L. 89-329, title V, Sec. 543,
    as added Pub. L. 90-35, Sec. 6, June 29, 1967, 81 Stat. 93; amended
    Pub. L. 90-575, title II, Sec. 231(a), Oct. 16, 1968, 82 Stat.
    1039; Pub. L. 92-318, title I, Sec. 141(a)(1)(B), June 23, 1972, 86
    Stat. 284, authorized appropriations for fiscal years 1969 to 1972,
    prior to repeal by Pub. L. 92-318, title I, Sec. 141(c)(1)(G), June
    23, 1972, 86 Stat. 285.
      Section 1119b-3, Pub. L. 89-329, title V, Sec. 544, as added Pub.
    L. 96-374, title V, Sec. 505(a), Oct. 3, 1980, 94 Stat. 1463, set
    out conditions for maintaining fellowships in training teachers for
    handicapped children.
      Section 1119b-4, Pub. L. 89-329, title V, Sec. 545, as added Pub.
    L. 96-374, title V, Sec. 505(a), Oct. 3, 1980, 94 Stat. 1463,
    defined "special education".
      Section 1119b-5, Pub. L. 89-329, title V, Sec. 546, as added Pub.
    L. 96-374, title V, Sec. 505(a), Oct. 3, 1980, 94 Stat. 1463,
    authorized appropriations for fiscal years 1981 to 1985 to carry
    out grant program for training teachers for handicapped children.
      Section 1119c, Pub. L. 89-329, title V, Sec. 551, as added Pub.
    L. 96-374, title V, Sec. 506, Oct. 3, 1980, 94 Stat. 1463, stated
    Congressional findings concerning Federal programs to train
    education professionals.
      Another prior section 1119c, Pub. L. 89-329, title V, Sec. 551,
    as added Pub. L. 90-576, title II, Sec. 201, Oct. 16, 1968, 82
    Stat. 1091, set forth Congressional declaration of purpose, prior
    to repeal by Pub. L. 94-482, title I, Sec. 151(a)(4)(C), title II,
    Sec. 204(c)(1), Oct. 12, 1976, 90 Stat. 2152, 2215.
      Section 1119c-1, Pub. L. 89-329, title V, Sec. 552, as added Pub.
    L. 96-374, title V, Sec. 506, Oct. 3, 1980, 94 Stat. 1464, stated
    Congressional declaration of policy concerning Federal programs to
    support education professional development.
      Another prior section 1119c-1, Pub. L. 89-329, title V, Sec. 552,
    as added Pub. L. 90-576, title II, Sec. 201, Oct. 16, 1968, 82
    Stat. 1092, related to leadership development awards, prior to
    repeal by Pub. L. 94-482, title I, Sec. 151(a)(4)(C), title II,
    Sec. 204(c)(1), Oct. 12, 1976, 90 Stat. 2152, 2215.
      Section 1119c-2, Pub. L. 89-329, title V, Sec. 553, as added Pub.
    L. 96-374, title V, Sec. 506, Oct. 3, 1980, 94 Stat. 1464; amended
    Pub. L. 99-386, title I, Sec. 103(b), Aug. 22, 1986, 100 Stat. 821,
    established Office of Education Professional Development.
      Another prior section 1119c-2, Pub. L. 89-329, title V, Sec. 553,
    as added Pub. L. 90-576, title II, Sec. 201, Oct. 16, 1968, 82
    Stat. 1093, related to exchange programs, institutes, and in-
    service education for vocational education teachers, supervisors,
    coordinators, and administrators, prior to repeal by Pub. L. 94-
    482, title I, Sec. 151(a)(4)(C), title II, Sec. 204(c)(1), Oct.
    12, 1976, 90 Stat. 2152, 2215.
      Section 1119c-3, Pub. L. 89-329, title V, Sec. 554, as added Pub.
    L. 90-576, title II, Sec. 201, Oct. 16, 1968, 82 Stat. 1094,
    related to familiarizing teachers with new curricular methods,
    prior to repeal by Pub. L. 94-482, title I, Sec. 151(a)(4)(C),
    title II, Sec. 204(c)(1), Oct. 12, 1976, 90 Stat. 2152, 2215.
      Section 1119c-4, Pub. L. 89-329, title V, Sec. 555, as added Pub.
    L. 94-482, title I, Sec. 151(a)(4)(B), Oct. 12, 1976, 90 Stat.
    2152, authorized appropriation for the fiscal years ending prior to
    Oct. 1, 1977, prior to repeal by Pub. L. 94-482, title I, Sec.
    151(a)(4)(C), title II, Sec. 204(c)(1), Oct. 12, 1976, 90 Stat.
    2152, 2215.
      An identical section 555 of Pub. L. 89-329, as added Pub. L. 94-
    482, title II, Sec. 201(q), Oct. 12, 1976, 90 Stat. 2169, was also
    classified to section 1119c-4, and was repealed by Pub. L. 94-482,
    title II, Sec. 204(c)(1), Oct. 12, 1976, 90 Stat. 2215.
      Another prior section 1119c-4, Pub. L. 89-329, title V, Sec. 555,
    as added by Pub. L. 90-576, title II, Sec. 201, Oct. 16, 1968, 82
    Stat. 1094; amended by Pub. L. 91-230, title VII, Sec. 708, Apr.
    13, 1970, 84 Stat. 189, authorized appropriations for fiscal years
    1969 to 1972, prior to repeal by Pub. L. 92-318, title I, Sec.
    141(c)(1)(H), June 23, 1972, 86 Stat. 285.
      Section 1119d, Pub. L. 89-329, title V, Sec. 561, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2894,
    stated purpose and authorized appropriations for Carl D. Perkins
    Scholarship program.
      Section 1119d-1, Pub. L. 89-329, title V, Sec. 562, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2894,
    provided for allocation among States of funds appropriated for Carl
    D. Perkins Scholarship program.
      Section 1119d-2, Pub. L. 89-329, title V, Sec. 563, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2894,
    provided for form, content, and processing of applications for
    grants to States under Carl D. Perkins Scholarship program.
      Section 1119d-3, Pub. L. 89-329, title V, Sec. 564, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2896,
    related to amount and duration of Carl D. Perkins Scholarships and
    the relationship of Scholarships to other forms of assistance.
      Section 1119d-4, Pub. L. 89-329, title V, Sec. 565, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2896,
    provided for selection of Carl D. Perkins Scholars.
      Section 1119d-5, Pub. L. 89-329, title V, Sec. 566, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2897,
    provided conditions for continued receipt of Carl D. Perkins
    Scholarship assistance.
      Section 1119d-6, Pub. L. 89-329, title V, Sec. 567, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2897,
    provided for repayment of Carl D. Perkins Scholarship assistance in
    case of noncompliance with program agreement.
      Section 1119d-7, Pub. L. 89-329, title V, Sec. 568, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2897,
    provided exceptions to repayment requirements.
      Section 1119d-8, Pub. L. 89-329, title V, Sec. 569, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2898,
    related to Federal administration of State programs to make
    available Carl D. Perkins Scholarships and judicial review thereof.
      Section 1119e, Pub. L. 89-329, title V, Sec. 571, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2898,
    stated purpose of establishing national fellowship program for
    outstanding teachers.
      Section 1119e-1, Pub. L. 89-329, title V, Sec. 572, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2898,
    authorized appropriations for fiscal years 1986 to 1989 for
    fellowships to outstanding teachers.
      Section 1119e-2, Pub. L. 89-329, title V, Sec. 573, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2899,
    provided for program of talented teacher fellowships.
      Section 1119e-3, Pub. L. 89-329, title V, Sec. 574, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2899,
    provided for selection of recipients of talented teacher
    fellowships.
      Section 1119e-4, Pub. L. 89-329, title V, Sec. 575, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2899,
    provided for submission and evaluation of applications for talented
    teacher fellowship assistance.
      Section 1119e-5, Pub. L. 89-329, title V, Sec. 576, as added Pub.
    L. 98-558, title VII, Sec. 701, Oct. 30, 1984, 98 Stat. 2900,
    provided for repayment of awards to Federal Government in case of
    fraud or gross noncompliance.

-End-


-CITE-
    20 USC SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS     01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS

-HEAD-
             SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS         

-COD-
                               CODIFICATION                           
      Title VI of the Higher Education Act of 1965, comprising this
    subchapter, was originally enacted by Pub. L. 89-329, title VI,
    Nov. 8, 1965, 79 Stat. 1261; amended Pub. L. 89-752, Nov. 3, 1966,
    80 Stat. 1240; Pub. L. 90-575, Oct. 16, 1968, 82 Stat. 1014; Pub.
    L. 92-318, June 23, 1972, 86 Stat. 235; Pub. L. 94-482, Oct. 12,
    1976, 90 Stat. 2081; Pub. L. 95-180, Nov. 15, 1977, 91 Stat. 1372;
    Pub. L. 96-49, Aug. 13, 1979; 93 Stat. 351. Title VI (except for
    part A) is shown herein, however, as having been added by Pub. L.
    96-374, title VI, Sec. 601(a), Oct. 3, 1980, 94 Stat. 1464, without
    reference to those intervening amendments because of the extensive
    revision of the title's provisions by Pub. L. 96-374.

-End-


-CITE-
    20 USC Part A - International and Foreign Language
                     Studies                               01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part A - International and Foreign Language Studies

-HEAD-
            PART A - INTERNATIONAL AND FOREIGN LANGUAGE STUDIES        

-COD-
                               CODIFICATION                           
      Part A of title VI of the Higher Education Act of 1965,
    comprising this part, was originally enacted by Pub. L. 89-329,
    title VI, Nov. 8, 1965, 79 Stat. 1261; amended Pub. L. 89-752, Nov.
    3, 1966, 80 Stat. 1240; Pub. L. 90-575, Oct. 16, 1968, 82 Stat.
    1014; Pub. L. 92-318, June 23, 1972, 86 Stat. 235; Pub. L. 94-482,
    Oct. 12, 1976, 90 Stat. 2081; Pub. L. 95-180, Nov. 15, 1977, 91
    Stat. 1372; Pub. L. 96-49, Aug. 13, 1979, 93 Stat. 351; Pub. L. 96-
    374, Oct. 3, 1980, 94 Stat. 1367; Pub. L. 97-375, Dec. 21, 1982,
    96 Stat. 1819; Pub. L. 99-386, Aug. 22, 1986, 100 Stat. 821; Pub.
    L. 99-498, Oct. 17, 1986, 100 Stat. 1268; Pub. L. 100-50, June 3,
    1987, 101 Stat. 335; Pub. L. 102-325, July 23, 1992, 106 Stat. 448;
    Pub. L. 103-208, Dec. 20, 1993, 107 Stat. 2457. Part A is shown
    herein, however, as having been added by Pub. L. 105-244, title VI,
    Sec. 601, Oct. 7, 1998, 112 Stat. 1774, without reference to those
    intervening amendments because of the extensive revision of part A
    by Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1121                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part A - International and Foreign Language Studies

-HEAD-
    Sec. 1121. Findings and purposes

-STATUTE-
    (a) Findings
      Congress finds as follows:
        (1) The security, stability, and economic vitality of the
      United States in a complex global era depend upon American
      experts in and citizens knowledgeable about world regions,
      foreign languages, and international affairs, as well as upon a
      strong research base in these areas.
        (2) Advances in communications technology and the growth of
      regional and global problems make knowledge of other countries
      and the ability to communicate in other languages more essential
      to the promotion of mutual understanding and cooperation among
      nations and their peoples.
        (3) Dramatic post-Cold War changes in the world's geopolitical
      and economic landscapes are creating needs for American expertise
      and knowledge about a greater diversity of less commonly taught
      foreign languages and nations of the world.
        (4) Systematic efforts are necessary to enhance the capacity of
      institutions of higher education in the United States for - 
          (A) producing graduates with international and foreign
        language expertise and knowledge; and
          (B) research regarding such expertise and knowledge.

        (5) Cooperative efforts among the Federal Government,
      institutions of higher education, and the private sector are
      necessary to promote the generation and dissemination of
      information about world regions, foreign languages, and
      international affairs throughout education, government, business,
      civic, and nonprofit sectors in the United States.
    (b) Purposes
      The purposes of this part are - 
        (1)(A) to support centers, programs, and fellowships in
      institutions of higher education in the United States for
      producing increased numbers of trained personnel and research in
      foreign languages, area studies, and other international studies;
        (B) to develop a pool of international experts to meet national
      needs;
        (C) to develop and validate specialized materials and
      techniques for foreign language acquisition and fluency,
      emphasizing (but not limited to) the less commonly taught
      languages;
        (D) to promote access to research and training overseas; and
        (E) to advance the internationalization of a variety of
      disciplines throughout undergraduate and graduate education;
        (2) to support cooperative efforts promoting access to and the
      dissemination of international and foreign language knowledge,
      teaching materials, and research, throughout education,
      government, business, civic, and nonprofit sectors in the United
      States, through the use of advanced technologies; and
        (3) to coordinate the programs of the Federal Government in the
      areas of foreign language, area studies, and other international
      studies, including professional international affairs education
      and research.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 601, as added Pub. L. 105-244,
    title VI, Sec. 601, Oct. 7, 1998, 112 Stat. 1774.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1121, Pub. L. 89-329, title VI, Sec. 601, as
    added Pub. L. 96-374, title VI, Sec. 601(a), Oct. 3, 1980, 94 Stat.
    1464; amended Pub. L. 99-498, title VI, Sec. 601, Oct. 17, 1986,
    100 Stat. 1514; Pub. L. 102-325, title VI, Sec. 601, July 23, 1992,
    106 Stat. 720, set out findings of Congress and purpose of this
    part, prior to the general amendment of this part by Pub. L. 105-
    244.
      Another prior section 1121, Pub. L. 89-329, title VI, Sec. 601,
    Nov. 8, 1965, 79 Stat. 1261; Pub. L. 89-752, Sec. 3(b), Nov. 3,
    1966, 80 Stat. 1241; Pub. L. 90-575, title II, Secs. 241, 242(a),
    Oct. 16, 1968, 82 Stat. 1041; Pub. L. 92-318, title I, Sec. 151(a),
    June 23, 1972, 86 Stat. 288; Pub. L. 94-482, title I, Sec. 156,
    Oct. 12, 1976, 90 Stat. 2155; Pub. L. 96-49, Sec. 7, Aug. 13, 1979,
    93 Stat. 353, set out the Congressional statement of purpose and
    the authorization of appropriations for the program of equipment
    grants to institutions of higher education, prior to the general
    amendment of this subchapter by Pub. L. 96-374.

                              EFFECTIVE DATE                          
      Part 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.

               NATIONAL ENDOWMENT FOR INTERNATIONAL STUDIES           
      Pub. L. 99-498, title XIII, Sec. 1302, Oct. 17, 1986, 100 Stat.
    1580, as amended by Pub. L. 100-50, Sec. 23(2), June 3, 1987, 101
    Stat. 362, required Secretary of Education, in consultation with
    Director of United States Information Agency, Director of the
    Agency for International Development, Secretary of State, and
    Secretary of Defense, to conduct a study on establishment of a
    National Endowment for International Studies, such study to develop
    a program, a funding plan, and priorities for such an Endowment,
    with the Secretary to prepare and submit to Congress, not later
    than one year after Oct. 17, 1986, a report on the study, together
    with such recommendations, including recommendations for
    legislation, as the Secretary deemed appropriate, prior to repeal
    by Pub. L. 105-332, Sec. 6(a), Oct. 31, 1998, 112 Stat. 3127.

-End-



-CITE-
    20 USC Sec. 1122                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part A - International and Foreign Language Studies

-HEAD-
    Sec. 1122. Graduate and undergraduate language and area centers and
      programs

-STATUTE-
    (a) National language and area centers and programs authorized
      (1) Centers and programs
        (A) In general
          The Secretary is authorized - 
            (i) to make grants to institutions of higher education, or
          combinations thereof, for the purpose of establishing,
          strengthening, and operating comprehensive foreign language
          and area or international studies centers and programs; and
            (ii) to make grants to such institutions or combinations
          for the purpose of establishing, strengthening, and operating
          a diverse network of undergraduate foreign language and area
          or international studies centers and programs.
        (B) National resources
          The centers and programs referred to in paragraph (1) shall
        be national resources for - 
            (i) teaching of any modern foreign language;
            (ii) instruction in fields needed to provide full
          understanding of areas, regions, or countries in which such
          language is commonly used;
            (iii) research and training in international studies, and
          the international and foreign language aspects of
          professional and other fields of study; and
            (iv) instruction and research on issues in world affairs
          that concern one or more countries.
      (2) Authorized activities
        Any such grant may be used to pay all or part of the cost of
      establishing or operating a center or program, including the cost
      of - 
          (A) teaching and research materials;
          (B) curriculum planning and development;
          (C) establishing and maintaining linkages with overseas
        institutions of higher education and other organizations that
        may contribute to the teaching and research of the center or
        program;
          (D) bringing visiting scholars and faculty to the center to
        teach or to conduct research;
          (E) professional development of the center's faculty and
        staff;
          (F) projects conducted in cooperation with other centers
        addressing themes of world regional, cross-regional,
        international, or global importance;
          (G) summer institutes in the United States or abroad designed
        to provide language and area training in the center's field or
        topic; and
          (H) support for faculty, staff, and student travel in foreign
        areas, regions, or countries, and for the development and
        support of educational programs abroad for students.
      (3) Grants to maintain library collections
        The Secretary may make grants to centers described in paragraph
      (1) having important library collections, as determined by the
      Secretary, for the maintenance of such collections.
      (4) Outreach grants and summer institutes
        The Secretary may make additional grants to centers described
      in paragraph (1) for any one or more of the following purposes:
          (A) Programs of linkage or outreach between foreign language,
        area studies, or other international fields, and professional
        schools and colleges.
          (B) Programs of linkage or outreach with 2- and 4-year
        colleges and universities.
          (C) Programs of linkage or outreach with departments or
        agencies of Federal and State governments.
          (D) Programs of linkage or outreach with the news media,
        business, professional, or trade associations.
          (E) Summer institutes in foreign area, foreign language, and
        other international fields designed to carry out the programs
        of linkage and outreach described in subparagraphs (A), (B),
        (C), and (D).
    (b) Graduate fellowships for foreign language and area or
      international studies
      (1) In general
        The Secretary is authorized to make grants to institutions of
      higher education or combinations of such institutions for the
      purpose of paying stipends to individuals undergoing advanced
      training in any center or program approved by the Secretary.
      (2) Eligible students
        Students receiving stipends described in paragraph (1) shall be
      individuals who are engaged in an instructional program with
      stated performance goals for functional foreign language use or
      in a program developing such performance goals, in combination
      with area studies, international studies, or the international
      aspects of a professional studies program, including
      predissertation level studies, preparation for dissertation
      research, dissertation research abroad, and dissertation writing.
    (c) Special rule with respect to travel
      No funds may be expended under this part for undergraduate travel
    except in accordance with rules prescribed by the Secretary setting
    forth policies and procedures to assure that Federal funds made
    available for such travel are expended as part of a formal program
    of supervised study.
    (d) Allowances
      Stipends awarded to graduate level recipients may include
    allowances for dependents and for travel for research and study in
    the United States and abroad.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 602, as added Pub. L. 105-244,
    title VI, Sec. 601, Oct. 7, 1998, 112 Stat. 1775.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1122, Pub. L. 89-329, title VI, Sec. 602, as
    added Pub. L. 96-374, title VI, Sec. 601(a), Oct. 3, 1980, 94 Stat.
    1465; amended Pub. L. 99-498, title VI, Sec. 602, Oct. 17, 1986,
    100 Stat. 1514; Pub. L. 100-50, Sec. 18, June 3, 1987, 101 Stat.
    360; Pub. L. 102-325, title VI, Sec. 601, July 23, 1992, 106 Stat.
    720; Pub. L. 103-208, Sec. 2(j)(10), (11), Dec. 20, 1993, 107 Stat.
    2481, authorized grants for graduate and undergraduate language and
    area centers and programs, prior to the general amendment of this
    part by Pub. L. 105-244.
      Another prior section 1122, Pub. L. 89-329, title VI, Sec. 602,
    Nov. 8, 1965, 79 Stat. 1261; Pub. L. 95-180, Sec. 1(c), Nov. 15,
    1977, 91 Stat. 1372, related to the allotment to States of funds
    under the program of equipment grants to institutions of higher
    education, prior to the general amendment of this subchapter by
    Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1123                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part A - International and Foreign Language Studies

-HEAD-
    Sec. 1123. Language resource centers

-STATUTE-
    (a) Language resource centers authorized
      The Secretary is authorized to make grants to and enter into
    contracts with institutions of higher education, or combinations of
    such institutions, for the purpose of establishing, strengthening,
    and operating a small number of national language resource and
    training centers, which shall serve as resources to improve the
    capacity to teach and learn foreign languages effectively.
    (b) Authorized activities
      The activities carried out by the centers described in subsection
    (a) of this section - 
        (1) shall include effective dissemination efforts, whenever
      appropriate; and
        (2) may include - 
          (A) the conduct and dissemination of research on new and
        improved teaching methods, including the use of advanced
        educational technology;
          (B) the development and dissemination of new teaching
        materials reflecting the use of such research in effective
        teaching strategies;
          (C) the development, application, and dissemination of
        performance testing appropriate to an educational setting for
        use as a standard and comparable measurement of skill levels in
        all languages;
          (D) the training of teachers in the administration and
        interpretation of performance tests, the use of effective
        teaching strategies, and the use of new technologies;
          (E) a significant focus on the teaching and learning needs of
        the less commonly taught languages, including an assessment of
        the strategic needs of the United States, the determination of
        ways to meet those needs nationally, and the publication and
        dissemination of instructional materials in the less commonly
        taught languages;
          (F) the development and dissemination of materials designed
        to serve as a resource for foreign language teachers at the
        elementary and secondary school levels; and
          (G) the operation of intensive summer language institutes to
        train advanced foreign language students, to provide
        professional development, and to improve language instruction
        through preservice and inservice language training for
        teachers.
    (c) Conditions for grants
      Grants under this section shall be made on such conditions as the
    Secretary determines to be necessary to carry out the provisions of
    this section.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 603, as added Pub. L. 105-244,
    title VI, Sec. 601, Oct. 7, 1998, 112 Stat. 1777.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1123, Pub. L. 89-329, title VI, Sec. 603, as
    added Pub. L. 96-374, title VI, Sec. 601(a), Oct. 3, 1980, 94 Stat.
    1466; amended Pub. L. 99-498, title VI, Sec. 603, Oct. 17, 1986,
    100 Stat. 1515; Pub. L. 102-325, title VI, Sec. 601, July 23, 1992,
    106 Stat. 722; Pub. L. 103-208, Sec. 2(j)(12), Dec. 20, 1993, 107
    Stat. 2481, authorized grants for language resource centers, prior
    to the general amendment of this part by Pub. L. 105-244.
      Another prior section 1123, Pub. L. 89-329, title VI, Sec. 603,
    Nov. 8, 1965, 79 Stat. 1262, related to the State plans for
    carrying out the program of equipment grants to institutions of
    higher education, prior to the general amendment of this subchapter
    by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1124                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part A - International and Foreign Language Studies

-HEAD-
    Sec. 1124. Undergraduate international studies and foreign language
      programs

-STATUTE-
    (a) Incentives for creation of new programs and strengthening of
      existing programs in undergraduate international studies and
      foreign language programs
      (1) Authority
        The Secretary is authorized to make grants to institutions of
      higher education, combinations of such institutions, or
      partnerships between nonprofit educational organizations and
      institutions of higher education, to assist such institutions,
      combinations or partnerships in planning, developing, and
      carrying out programs to improve undergraduate instruction in
      international studies and foreign languages. Such grants shall be
      awarded to institutions, combinations or partnerships seeking to
      create new programs or to strengthen existing programs in foreign
      languages, area studies, and other international fields.
      (2) Use of funds
        Grants made under this section may be used for Federal share of
      the cost of projects and activities which are an integral part of
      such a program, such as - 
          (A) planning for the development and expansion of
        undergraduate programs in international studies and foreign
        languages;
          (B) teaching, research, curriculum development, faculty
        training in the United States or abroad, and other related
        activities, including - 
            (i) the expansion of library and teaching resources; and
            (ii) preservice and inservice teacher training;

          (C) expansion of opportunities for learning foreign
        languages, including less commonly taught languages;
          (D) programs under which foreign teachers and scholars may
        visit institutions as visiting faculty;
          (E) programs designed to develop or enhance linkages between
        2- and 4-year institutions of higher education, or
        baccalaureate and post-baccalaureate programs or institutions;
          (F) the development of undergraduate educational programs - 
            (i) in locations abroad where such opportunities are not
          otherwise available or that serve students for whom such
          opportunities are not otherwise available; and
            (ii) that provide courses that are closely related to on-
          campus foreign language and international curricula;

          (G) the integration of new and continuing education abroad
        opportunities for undergraduate students into curricula of
        specific degree programs;
          (H) the development of model programs to enrich or enhance
        the effectiveness of educational programs abroad, including
        predeparture and postreturn programs, and the integration of
        educational programs abroad into the curriculum of the home
        institution;
          (I) the development of programs designed to integrate
        professional and technical education with foreign languages,
        area studies, and other international fields;
          (J) the establishment of linkages overseas with institutions
        of higher education and organizations that contribute to the
        educational programs assisted under this subsection;
          (K) the conduct of summer institutes in foreign area, foreign
        language, and other international fields to provide faculty and
        curriculum development, including the integration of
        professional and technical education with foreign area and
        other international studies, and to provide foreign area and
        other international knowledge or skills to government personnel
        or private sector professionals in international activities;
          (L) the development of partnerships between - 
            (i) institutions of higher education; and
            (ii) the private sector, government, or elementary and
          secondary education institutions,

        in order to enhance international knowledge and skills; and
          (M) the use of innovative technology to increase access to
        international education programs.
      (3) Non-Federal share
        The non-Federal share of the cost of the programs assisted
      under this subsection - 
          (A) may be provided in cash from the private sector
        corporations or foundations in an amount equal to one-third of
        the total cost of the programs assisted under this section; or
          (B) may be provided as an in-cash or in-kind contribution
        from institutional and noninstitutional funds, including State
        and private sector corporation or foundation contributions,
        equal to one-half of the total cost of the programs assisted
        under this section.
      (4) Special rule
        The Secretary may waive or reduce the required non-Federal
      share for institutions that - 
          (A) are eligible to receive assistance under part A or B of
        subchapter III of this chapter or under subchapter V of this
        chapter; and
          (B) have submitted a grant application under this section.
      (5) Priority
        In awarding grants under this section, the Secretary shall give
      priority to applications from institutions of higher education,
      combinations or partnerships that require entering students to
      have successfully completed at least 2 years of secondary school
      foreign language instruction or that require each graduating
      student to earn 2 years of postsecondary credit in a foreign
      language (or have demonstrated equivalent competence in the
      foreign language) or, in the case of a 2-year degree granting
      institution, offer 2 years of postsecondary credit in a foreign
      language.
      (6) Grant conditions
        Grants under this subsection shall be made on such conditions
      as the Secretary determines to be necessary to carry out this
      subsection.
      (7) Application
        Each application for assistance under this subsection shall
      include - 
          (A) evidence that the applicant has conducted extensive
        planning prior to submitting the application;
          (B) an assurance that the faculty and administrators of all
        relevant departments and programs served by the applicant are
        involved in ongoing collaboration with regard to achieving the
        stated objectives of the application;
          (C) an assurance that students at the applicant institutions,
        as appropriate, will have equal access to, and derive benefits
        from, the program assisted under this subsection; and
          (D) an assurance that each institution, combination or
        partnership will use the Federal assistance provided under this
        subsection to supplement and not supplant non-Federal funds the
        institution expends for programs to improve undergraduate
        instruction in international studies and foreign languages.
      (8) Evaluation
        The Secretary may establish requirements for program
      evaluations and require grant recipients to submit annual reports
      that evaluate the progress and performance of students
      participating in programs assisted under this subsection.
    (b) Programs of national significance
      The Secretary may also award grants to public and private
    nonprofit agencies and organizations, including professional and
    scholarly associations, whenever the Secretary determines such
    grants will make an especially significant contribution to
    improving undergraduate international studies and foreign language
    programs.
    (c) Funding support
      The Secretary may use not more than 10 percent of the total
    amount appropriated for this part for carrying out the purposes of
    this section.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 604, as added Pub. L. 105-244,
    title VI, Sec. 601, Oct. 7, 1998, 112 Stat. 1778.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1124, Pub. L. 89-329, title VI, Sec. 604, as
    added Pub. L. 96-374, title VI, Sec. 601(a), Oct. 3, 1980, 94 Stat.
    1466; amended Pub. L. 99-498, title VI, Sec. 604, Oct. 17, 1986,
    100 Stat. 1516; Pub. L. 102-325, title VI, Sec. 601, July 23, 1992,
    106 Stat. 722, authorized grants for undergraduate international
    studies and foreign language programs, prior to the general
    amendment of this part by Pub. L. 105-244.
      Another prior section 1124, Pub. L. 89-329, title VI, Sec. 604,
    Nov. 8, 1965, 79 Stat. 1263; Pub. L. 89-752, Sec. 14, Nov. 3, 1966,
    80 Stat. 1244; Pub. L. 90-575, title II, Sec. 242(b)-(d), Oct. 16,
    1968, 82 Stat. 1041; Pub. L. 94-482, title I, Sec. 157, Oct. 12,
    1976, 90 Stat. 2156, provided for grants to institutions of higher
    education for projects, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      A prior section 1124a, Pub. L. 89-329, title VI, Sec. 605, as
    added Pub. L. 99-498, title VI, Sec. 605(2), Oct. 17, 1986, 100
    Stat. 1517; amended Pub. L. 102-325, title VI, Sec. 601, July 23,
    1992, 106 Stat. 725, authorized grants for intensive summer
    language institutes, prior to the general amendment of this part by
    Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1125                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part A - International and Foreign Language Studies

-HEAD-
    Sec. 1125. Research; studies; annual report

-STATUTE-
    (a) Authorized activities
      The Secretary may, directly or through grants or contracts,
    conduct research and studies that contribute to achieving the
    purposes of this part. Such research and studies may include - 
        (1) studies and surveys to determine needs for increased or
      improved instruction in foreign language, area studies, or other
      international fields, including the demand for foreign language,
      area, and other international specialists in government,
      education, and the private sector;
        (2) studies and surveys to assess the utilization of graduates
      of programs supported under this subchapter by governmental,
      educational, and private sector organizations and other studies
      assessing the outcomes and effectiveness of programs so
      supported;
        (3) evaluation of the extent to which programs assisted under
      this subchapter that address national needs would not otherwise
      be offered;
        (4) comparative studies of the effectiveness of strategies to
      provide international capabilities at institutions of higher
      education;
        (5) research on more effective methods of providing instruction
      and achieving competency in foreign languages, area studies, or
      other international fields;
        (6) the development and publication of specialized materials
      for use in foreign language, area studies, and other
      international fields, or for training foreign language, area, and
      other international specialists;
        (7) studies and surveys of the uses of technology in foreign
      language, area studies, and international studies programs;
        (8) studies and evaluations of effective practices in the
      dissemination of international information, materials, research,
      teaching strategies, and testing techniques throughout the
      education community, including elementary and secondary schools;
      and
        (9) the application of performance tests and standards across
      all areas of foreign language instruction and classroom use.
    (b) Annual report
      The Secretary shall prepare, publish, and announce an annual
    report listing the books and research materials produced with
    assistance under this section.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 605, as added Pub. L. 105-244,
    title VI, Sec. 601, Oct. 7, 1998, 112 Stat. 1780.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1125, Pub. L. 89-329, title VI, Sec. 606,
    formerly Sec. 605, as added Pub. L. 96-374, title VI, Sec. 601(a),
    Oct. 3, 1980, 94 Stat. 1467; amended Pub. L. 97-375, title II, Sec.
    204, Dec. 21, 1982, 96 Stat. 1823; Pub. L. 99-386, title I, Sec.
    103(c), Aug. 22, 1986, 100 Stat. 821; renumbered Sec. 606 and
    amended Pub. L. 99-498, title VI, Secs. 605(1), 606, Oct. 17, 1986,
    100 Stat. 1517; Pub. L. 102-325, title VI, Sec. 601, July 23, 1992,
    106 Stat. 725, authorized research and studies and required annual
    report, prior to the general amendment of this part by Pub. L. 105-
    244.
      Another prior section 1125, Pub. L. 89-329, title VI, Sec. 605,
    Nov. 8, 1965, 79 Stat. 1264; Pub. L. 90-575, title II, Sec. 242(a),
    (e), Oct. 16, 1968, 82 Stat. 1041, related to the applications by
    institutions of higher education for grants under the program of
    equipment grants, prior to the general amendment of this subchapter
    by Pub. L. 96-374.
      A prior section 605 of Pub. L. 89-329 was classified to section
    1124a of this title, prior to the general amendment of this part by
    Pub. L. 105-244.
      Prior sections 1125a and 1125b were omitted in the general
    amendment of this part by Pub. L. 105-244.
      Section 1125a, Pub. L. 89-329, title VI, Sec. 607, as added Pub.
    L. 99-498, title VI, Sec. 607, Oct. 17, 1986, 100 Stat. 1518;
    amended Pub. L. 102-325, title VI, Sec. 601, July 23, 1992, 106
    Stat. 726; Pub. L. 103-208, Sec. 2(j)(13), Dec. 20, 1993, 107 Stat.
    2481, related to periodicals and other research materials published
    outside the United States.
      Section 1125b, Pub. L. 89-329, title VI, Sec. 608, as added Pub.
    L. 99-498, title VI, Sec. 608, Oct. 17, 1986, 100 Stat. 1518;
    amended Pub. L. 102-325, title VI, Sec. 601, July 23, 1992, 106
    Stat. 727, related to selection of certain grant recipients.

-End-



-CITE-
    20 USC Sec. 1126                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part A - International and Foreign Language Studies

-HEAD-
    Sec. 1126. Technological innovation and cooperation for foreign
      information access

-STATUTE-
    (a) Authority
      The Secretary is authorized to make grants to institutions of
    higher education, public or nonprofit private libraries, or
    consortia of such institutions or libraries, to develop innovative
    techniques or programs using new electronic technologies to
    collect, organize, preserve, and widely disseminate information on
    world regions and countries other than the United States that
    address our Nation's teaching and research needs in international
    education and foreign languages.
    (b) Authorized activities
      Grants under this section may be used - 
        (1) to facilitate access to or preserve foreign information
      resources in print or electronic forms;
        (2) to develop new means of immediate, full-text document
      delivery for information and scholarship from abroad;
        (3) to develop new means of shared electronic access to
      international data;
        (4) to support collaborative projects of indexing, cataloging,
      and other means of bibliographic access for scholars to important
      research materials published or distributed outside the United
      States;
        (5) to develop methods for the wide dissemination of resources
      written in non-Roman language alphabets;
        (6) to assist teachers of less commonly taught languages in
      acquiring, via electronic and other means, materials suitable for
      classroom use; and
        (7) to promote collaborative technology based projects in
      foreign languages, area studies, and international studies among
      grant recipients under this subchapter.
    (c) Application
      Each institution or consortium desiring a grant under this
    section shall submit an application to the Secretary at such time,
    in such manner, and accompanied by such information and assurances
    as the Secretary may reasonably require.
    (d) Match required
      The Federal share of the total cost of carrying out a program
    supported by a grant under this section shall not be more than 66
    2/3  percent. The non-Federal share of such cost may be provided
    either in-kind or in cash, and may include contributions from
    private sector corporations or foundations.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 606, as added Pub. L. 105-244,
    title VI, Sec. 601, Oct. 7, 1998, 112 Stat. 1781.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1126, Pub. L. 89-329, title VI, Sec. 609,
    formerly Sec. 606, as added Pub. L. 96-374, title VI, Sec. 601(a),
    Oct. 3, 1980, 94 Stat. 1467; renumbered Sec. 609, Pub. L. 99-498,
    title VI, Sec. 605(1), Oct. 17, 1986, 100 Stat. 1517; amended Pub.
    L. 102-325, title VI, Sec. 601, July 23, 1992, 106 Stat. 727,
    related to equitable distribution of grants, prior to the general
    amendment of this part by Pub. L. 105-244.
      Another prior section 1126, Pub. L. 89-329, title VI, Sec. 606,
    Nov. 8, 1965, 79 Stat. 1265, related to reservation and payment of
    equipment grants to institutions of higher education, prior to the
    general amendment of this subchapter by Pub. L. 96-374.
      A prior section 606 of Pub. L. 89-329 was classified to section
    1125 of this title, prior to the general amendment of this part by
    Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1127                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part A - International and Foreign Language Studies

-HEAD-
    Sec. 1127. Selection of certain grant recipients

-STATUTE-
    (a) Competitive grants
      The Secretary shall award grants under section 1122 of this title
    competitively on the basis of criteria that separately, but not
    less rigorously, evaluates the applications for comprehensive and
    undergraduate language and area centers and programs.
    (b) Selection criteria
      The Secretary shall set criteria for grants awarded under section
    1122 of this title by which a determination of excellence shall be
    made to meet the differing objectives of graduate and undergraduate
    institutions.
    (c) Equitable distribution of grants
      The Secretary shall, to the extent practicable, award grants
    under this part (other than section 1122 of this title) in such
    manner as to achieve an equitable distribution of the grant funds
    throughout the United States, based on the merit of a proposal as
    determined pursuant to a peer review process involving broadly
    representative professionals.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 607, as added Pub. L. 105-244,
    title VI, Sec. 601, Oct. 7, 1998, 112 Stat. 1782.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1127, Pub. L. 89-329, title VI, Sec. 610,
    formerly Sec. 607, as added Pub. L. 96-374, title VI, Sec. 601(a),
    Oct. 3, 1980, 94 Stat. 1467; renumbered Sec. 610 and amended Pub.
    L. 99-498, title VI, Secs. 605(1), 609, Oct. 17, 1986, 100 Stat.
    1517, 1519; Pub. L. 102-325, title VI, Sec. 601, July 23, 1992, 106
    Stat. 728, authorized grants and contracts for American overseas
    research centers, prior to the general amendment of this part by
    Pub. L. 105-244.
      Another prior section 1127, Pub. L. 89-329, title VI, Sec. 607,
    Nov. 8, 1965, 79 Stat. 1265, provided procedures to be followed in
    event of disapproval of a State plan under equipment grant program,
    prior to the general amendment of this subchapter by Pub. L. 96-
    374.
      A prior section 607 of Pub. L. 89-329 was classified to section
    1125a of this title, prior to the general amendment of this part by
    Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1128                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part A - International and Foreign Language Studies

-HEAD-
    Sec. 1128. Equitable distribution of certain funds

-STATUTE-
    (a) Selection criteria
      The Secretary shall make excellence the criterion for selection
    of grants awarded under section 1122 of this title.
    (b) Equitable distribution
      To the extent practicable and consistent with the criterion of
    excellence, the Secretary shall award grants under this part (other
    than section 1122 of this title) in such a manner as will achieve
    an equitable distribution of funds throughout the United States.
    (c) Support for undergraduate education
      The Secretary shall also award grants under this part in such
    manner as to ensure that an appropriate portion of the funds
    appropriated for this part (as determined by the Secretary) are
    used to support undergraduate education.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 608, as added Pub. L. 105-244,
    title VI, Sec. 601, Oct. 7, 1998, 112 Stat. 1782.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1128, Pub. L. 89-329, title VI, Sec. 610A, as
    added Pub. L. 102-325, title VI, Sec. 601, July 23, 1992, 106 Stat.
    728, authorized appropriations for this part, prior to the general
    amendment of this part by Pub. L. 105-244.
      Another prior section 1128, Pub. L. 89-329, title VI, Sec. 608,
    Nov. 8, 1965, 79 Stat. 1265, provided the process of judicial
    review in event of State dissatisfaction in equipment grant
    program, prior to the general amendment of this subchapter by Pub.
    L. 96-374.
      A prior section 608 of Pub. L. 89-329 was classified to section
    1125b of this title, prior to the general amendment of this part by
    Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1128a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part A - International and Foreign Language Studies

-HEAD-
    Sec. 1128a. American overseas research centers

-STATUTE-
    (a) Centers authorized
      The Secretary is authorized to make grants to and enter into
    contracts with any American overseas research center that is a
    consortium of institutions of higher education (hereafter in this
    section referred to as a "center") to enable such center to promote
    postgraduate research, exchanges and area studies.
    (b) Use of grants
      Grants made and contracts entered into pursuant to this section
    may be used to pay all or a portion of the cost of establishing or
    operating a center or program, including - 
        (1) the cost of faculty and staff stipends and salaries;
        (2) the cost of faculty, staff, and student travel;
        (3) the cost of the operation and maintenance of overseas
      facilities;
        (4) the cost of teaching and research materials;
        (5) the cost of acquisition, maintenance, and preservation of
      library collections;
        (6) the cost of bringing visiting scholars and faculty to a
      center to teach or to conduct research;
        (7) the cost of organizing and managing conferences; and
        (8) the cost of publication and dissemination of material for
      the scholarly and general public.
    (c) Limitation
      The Secretary shall only award grants to and enter into contracts
    with centers under this section that - 
        (1) receive more than 50 percent of their funding from public
      or private United States sources;
        (2) have a permanent presence in the country in which the
      center is located; and
        (3) are organizations described in section 501(c)(3) of title
      26 which are exempt from taxation under section 501(a) of such
      title.
    (d) Development grants
      The Secretary is authorized to make grants for the establishment
    of new centers. The grants may be used to fund activities that,
    within 1 year, will result in the creation of a center described in
    subsection (c) of this section.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 609, as added Pub. L. 105-244,
    title VI, Sec. 601, Oct. 7, 1998, 112 Stat. 1782.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 609 of Pub. L. 89-329 was classified to section
    1126 of this title, prior to the general amendment of this part by
    Pub. L. 105-244.
      Another prior section 609 of Pub. L. 89-329, title VI, Nov. 8,
    1965, 79 Stat. 1266; Pub. L. 92-318, title I, Sec. 131(d)(2)(D),
    June 23, 1972, 86 Stat. 260, prohibited equipment grants for
    sectarian instruction or religious worship and was classified to
    section 1129 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1128b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part A - International and Foreign Language Studies

-HEAD-
    Sec. 1128b. Authorization of appropriations

-STATUTE-
      There are authorized to be appropriated to carry out this part
    $80,000,000 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 VI, Sec. 610, as added Pub. L. 105-244,
    title VI, Sec. 601, Oct. 7, 1998, 112 Stat. 1783.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 610 of Pub. L. 89-329 was classified to section
    1127 of this title, prior to the general amendment of this part by
    Pub. L. 105-244.
      Prior sections 1129 and 1129a were omitted in the general
    amendment of this subchapter by Pub. L. 96-374.
      Section 1129, Pub. L. 89-329, title VI, Sec. 609, Nov. 8, 1965,
    79 Stat. 1266; Pub. L. 92-318, title I, Sec. 131(d)(2)(D), June 23,
    1972, 86 Stat. 260, prohibited equipment grants for sectarian
    instruction or religious worship.
      Section 1129a, Pub. L. 89-329, title VI, Sec. 610, as added Pub.
    L. 90-575, title II, Sec. 243, Oct. 16, 1968, 82 Stat. 1041,
    provided for consultation with the National Science Foundation in
    regard to the purchase of laboratory equipment.

-End-


-CITE-
    20 USC Part B - Business and International Education
                     Programs                              01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part B - Business and International Education Programs

-HEAD-
          PART B - BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS      

-End-



-CITE-
    20 USC Sec. 1130                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part B - Business and International Education Programs

-HEAD-
    Sec. 1130. Findings and purposes

-STATUTE-
    (a) Findings
      The Congress finds that - 
        (1) the future economic welfare of the United States will
      depend substantially on increasing international skills in the
      business and educational community and creating an awareness
      among the American public of the internationalization of our
      economy;
        (2) concerted efforts are necessary to engage business schools,
      language and area study programs, professional international
      affairs education programs, public and private sector
      organizations, and United States business in a mutually
      productive relationship which benefits the Nation's future
      economic interests;
        (3) few linkages presently exist between the manpower and
      information needs of United States business and the international
      education, language training and research capacities of
      institutions of higher education in the United States, and public
      and private organizations; and
        (4) organizations such as world trade councils, world trade
      clubs, chambers of commerce and State departments of commerce are
      not adequately used to link universities and business for joint
      venture exploration and program development.
    (b) Purposes
      It is the purpose of this part - 
        (1) to enhance the broad objective of this chapter by
      increasing and promoting the Nation's capacity for international
      understanding and economic enterprise through the provision of
      suitable international education and training for business
      personnel in various stages of professional development; and
        (2) to promote institutional and noninstitutional educational
      and training activities that will contribute to the ability of
      United States business to prosper in an international economy.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 611, as added Pub. L. 96-374, title
    VI, Sec. 601(a), Oct. 3, 1980, 94 Stat. 1467; amended Pub. L. 99-
    498, title VI, Sec. 610, Oct. 17, 1986, 100 Stat. 1519; Pub. L.
    102-325, title VI, Sec. 601, July 23, 1992, 106 Stat. 728; Pub. L.
    105-244, title VI, Sec. 602(a), Oct. 7, 1998, 112 Stat. 1783.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (b)(1), was in the original
    "this Act", meaning Pub. L. 89-329, 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.


-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-244 amended section catchline generally.
      1992 - Pub. L. 102-325 amended section generally, inserting
    subsec. headings and reenacting text without substantial change.
      1986 - Subsec. (a)(1). Pub. L. 99-498 inserted "and educational"
    after "skills in the business".

                     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.

-End-



-CITE-
    20 USC Sec. 1130-1                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part B - Business and International Education Programs

-HEAD-
    Sec. 1130-1. Centers for international business education

-STATUTE-
    (a) Program authorized
      (1) In general
        The Secretary is authorized to make grants to institutions of
      higher education, or combinations of such institutions, to pay
      the Federal share of the cost of planning, establishing and
      operating centers for international business education which - 
          (A) will be national resources for the teaching of improved
        business techniques, strategies, and methodologies which
        emphasize the international context in which business is
        transacted;
          (B) will provide instruction in critical foreign languages
        and international fields needed to provide understanding of the
        cultures and customs of United States trading partners; and
          (C) will provide research and training in the international
        aspects of trade, commerce, and other fields of study.
      (2) Special rule
        In addition to providing training to students enrolled in the
      institution of higher education in which a center is located,
      such centers shall serve as regional resources to businesses
      proximately located by offering programs and providing research
      designed to meet the international training needs of such
      businesses. Such centers shall also serve other faculty,
      students, and institutions of higher education located within
      their region.
    (b) Authorized expenditures
      Each grant made under this section may be used to pay the Federal
    share of the cost of planning, establishing or operating a center,
    including the cost of - 
        (1) faculty and staff travel in foreign areas, regions, or
      countries;
        (2) teaching and research materials;
        (3) curriculum planning and development;
        (4) bringing visiting scholars and faculty to the center to
      teach or to conduct research; and
        (5) training and improvement of the staff, for the purpose of,
      and subject to such conditions as the Secretary finds necessary
      for, carrying out the objectives of this section.
    (c) Authorized activities
      (1) Mandatory activities
        Programs and activities to be conducted by centers assisted
      under this section shall include - 
          (A) interdisciplinary programs which incorporate foreign
        language and international studies training into business,
        finance, management, communications systems, and other
        professional curricula;
          (B) interdisciplinary programs which provide business,
        finance, management, communications systems, and other
        professional training for foreign language and international
        studies faculty and degree candidates;
          (C) programs, such as intensive language programs, available
        to members of the business community and other professionals
        which are designed to develop or enhance their international
        skills, awareness, and expertise;
          (D) collaborative programs, activities, or research involving
        other institutions of higher education, local educational
        agencies, professional associations, businesses, firms, or
        combinations thereof, to promote the development of
        international skills, awareness, and expertise among current
        and prospective members of the business community and other
        professionals;
          (E) research designed to strengthen and improve the
        international aspects of business and professional education
        and to promote integrated curricula; and
          (F) research designed to promote the international
        competitiveness of American businesses and firms, including
        those not currently active in international trade.
      (2) Permissible activities
        Programs and activities to be conducted by centers assisted
      under this section may include - 
          (A) the establishment of overseas internship programs for
        students and faculty designed to provide training and
        experience in international business activities, except that no
        Federal funds provided under this section may be used to pay
        wages or stipends to any participant who is engaged in
        compensated employment as part of an internship program;
          (B) the establishment of linkages overseas with institutions
        of higher education and other organizations that contribute to
        the educational objectives of this section;
          (C) summer institutes in international business, foreign area
        studies, foreign language studies, and other international
        studies designed to carry out the purposes of subparagraph (A)
        of this paragraph;
          (D) the development of opportunities for business students to
        study abroad in locations which are important to the existing
        and future economic well-being of the United States;
          (E) outreach activities or consortia with business programs
        located at other institutions of higher education for the
        purpose of providing expertise regarding the
        internationalization of such programs, such as assistance in
        research, curriculum development, faculty development, or
        educational exchange programs; and
          (F) other eligible activities prescribed by the Secretary.
    (d) Advisory council
      (1) Establishment
        In order to be eligible for assistance under this section, an
      institution of higher education, or combination of such
      institutions, shall establish a center advisory council which
      will conduct extensive planning prior to the establishment of a
      center concerning the scope of the center's activities and the
      design of its programs.
      (2) Membership on advisory council
        The center advisory council shall include - 
          (A) one representative of an administrative department or
        office of the institution of higher education;
          (B) one faculty representative of the business or management
        school or department of such institution;
          (C) one faculty representative of the international studies
        or foreign language school or department of such institution;
          (D) one faculty representative of another professional school
        or department of such institution, as appropriate;
          (E) one or more representatives of local or regional
        businesses or firms;
          (F) one representative appointed by the Governor of the State
        in which the institution of higher education is located whose
        normal responsibilities include official oversight or
        involvement in State-sponsored trade-related activities or
        programs; and
          (G) such other individuals as the institution of higher
        education deems appropriate, such as a representative of a
        community college in the region served by the center.
      (3) Meetings
        In addition to the initial planning activities required under
      subsection (d)(1) of this section, the center advisory council
      shall meet not less than once each year after the establishment
      of the center to assess and advise on the programs and activities
      conducted by the center.
    (e) Grant duration; Federal share
      (1) Duration of grants
        The Secretary shall make grants under this section for a
      minimum of 3 years unless the Secretary determines that the
      provision of grants of shorter duration is necessary to carry out
      the objectives of this section.
      (2) Federal share
        The Federal share of the cost of planning, establishing and
      operating centers under this section shall be - 
          (A) not more than 90 percent for the first year in which
        Federal funds are received;
          (B) not more than 70 percent for the second such year; and
          (C) not more than 50 percent for the third such year and for
        each such year thereafter.
      (3) Non-Federal share
        The non-Federal share of the cost of planning, establishing,
      and operating centers under this section may be provided either
      in cash or in-kind.
      (4) Waiver of non-Federal share
        In the case of an institution of higher education receiving a
      grant under this part and conducting outreach or consortia
      activities with another institution of higher education in
      accordance with subsection (c)(2)(E) of this section, the
      Secretary may waive a portion of the requirements for the non-
      Federal share required in paragraph (2) equal to the amount
      provided by the institution of higher education receiving such
      grant to such other institution of higher education for carrying
      out such outreach or consortia activities. Any such waiver shall
      be subject to such terms and conditions as the Secretary deems
      necessary for carrying out the purposes of this section.
    (f) Grant conditions
      Grants under this section shall be made on such conditions as the
    Secretary determines to be necessary to carry out the objectives of
    this section. Such conditions shall include - 
        (1) evidence that the institution of higher education, or
      combination of such institutions, will conduct extensive planning
      prior to the establishment of a center concerning the scope of
      the center's activities and the design of its programs in
      accordance with subsection (d)(1) of this section;
        (2) assurance of ongoing collaboration in the establishment and
      operation of the center by faculty of the business, management,
      foreign language, international studies, professional
      international affairs, and other professional schools or
      departments, as appropriate;
        (3) assurance that the education and training programs of the
      center will be open to students concentrating in each of these
      respective areas, as appropriate; and
        (4) assurance that the institution of higher education, or
      combination of such institutions, will use the assistance
      provided under this section to supplement and not to supplant
      activities conducted by institutions of higher education
      described in subsection (c)(1) of this section.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 612, as added Pub. L. 100-418,
    title VI, Sec. 6261(2), Aug. 23, 1988, 102 Stat. 1520; amended Pub.
    L. 102-325, title VI, Sec. 601, July 23, 1992, 106 Stat. 729; Pub.
    L. 105-244, title VI, Sec. 602(b), Oct. 7, 1998, 112 Stat. 1783.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 612 of Pub. L. 89-329 was renumbered section 613
    and is classified to section 1130a of this title.

                                AMENDMENTS                            
      1998 - Subsec. (c)(1)(B). Pub. L. 105-244, Sec. 602(b)(1)(A)(i),
    struck out "advanced" after "faculty and".
      Subsec. (c)(1)(C). Pub. L. 105-244, Sec. 602(b)(1)(A)(ii), struck
    out "evening or summer" before "programs, such".
      Subsec. (c)(2)(C). Pub. L. 105-244, Sec. 602(b)(1)(B), inserted
    "foreign language studies," after "area studies,".
      Subsec. (d)(2)(G). Pub. L. 105-244, Sec. 602(b)(2), inserted ",
    such as a representative of a community college in the region
    served by the center" before the period.
      1992 - Pub. L. 102-325 amended section generally, substituting
    present provisions for provisions relating to grants for
    establishing and operating international business education centers
    in subsec. (a), costs to be covered by Federal funds in subsec.
    (b), scope of programs and activities in subsec. (c), center
    advisory council in subsec. (d), duration of grants and allotment
    of Federal and non-Federal shares in subsec. (e), and conditions
    for grants in subsec. (f).

                     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.

-End-



-CITE-
    20 USC Sec. 1130a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part B - Business and International Education Programs

-HEAD-
    Sec. 1130a. Education and training programs

-STATUTE-
    (a) Program authorized
      The Secretary shall make grants to, and enter into contracts
    with, institutions of higher education to pay the Federal share of
    the cost of programs designed to promote linkages between such
    institutions and the American business community engaged in
    international economic activity. Each program assisted under this
    section shall both enhance the international academic programs of
    institutions of higher education and provide appropriate services
    to the business community which will expand its capacity to engage
    in commerce abroad.
    (b) Authorized activities
      Eligible activities to be conducted by institutions of higher
    education pursuant to grants or contracts awarded under this
    section shall include - 
        (1) innovation and improvement in international education
      curricula to serve the needs of the business community, including
      development of new programs for nontraditional, mid-career, or
      part-time students;
        (2) development of programs to inform the public of increasing
      international economic interdependence and the role of American
      business within the international economic system;
        (3) internationalization of curricula at the junior and
      community college level, and at undergraduate and graduate
      schools of business;
        (4) development of area studies programs, and interdisciplinary
      international programs;
        (5) establishment of export education programs through
      cooperative arrangements with regional and world trade centers
      and councils, and with bilateral and multilateral trade
      associations;
        (6) research for and development of specialized teaching
      materials, including language materials, and facilities
      appropriate to business-oriented students;
        (7) establishment of student and faculty fellowships and
      internships for training and education in international business
      activities;
        (8) development of opportunities for junior business and other
      professional school faculty to acquire or strengthen
      international skills and perspectives;
        (9) development of research programs on issues of common
      interest to institutions of higher education and private sector
      organizations and associations engaged in or promoting
      international economic activity;
        (10) the establishment of internships overseas to enable
      foreign language students to develop their foreign language
      skills and knowledge of foreign cultures and societies;
        (11) the establishment of linkages overseas with institutions
      of higher education and organizations that contribute to the
      educational objectives of this section; and
        (12) summer institutes in international business, foreign area
      and other international studies designed to carry out the
      purposes of this section.
    (c) Applications
      No grant may be made and no contract may be entered into under
    this section unless an institution of higher education submits an
    application to the Secretary at such time and in such manner as the
    Secretary may reasonably require. Each such application shall be
    accompanied by a copy of the agreement entered into by the
    institution of higher education with a business enterprise, trade
    organization or association engaged in international economic
    activity, or a combination or consortium of such enterprises,
    organizations or associations, for the purpose of establishing,
    developing, improving or expanding activities eligible for
    assistance under subsection (b) of this section. Each such
    application shall contain assurances that the institution of higher
    education will use the assistance provided under this section to
    supplement and not to supplant activities conducted by institutions
    of higher education described in subsection (b) of this section.
    (d) Federal share
      The Federal share under this part for each fiscal year shall not
    exceed 50 percent of the cost of such program.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 613, formerly Sec. 612, as added
    Pub. L. 96-374, title VI, Sec. 601(a), Oct. 3, 1980, 94 Stat. 1468;
    amended Pub. L. 99-498, title VI, Sec. 611, Oct. 17, 1986, 100
    Stat. 1519; renumbered Sec. 613 and amended Pub. L. 100-418, title
    VI, Secs. 6261(1), 6263, Aug. 23, 1988, 102 Stat. 1520, 1523; Pub.
    L. 102-325, title VI, Sec. 601, July 23, 1992, 106 Stat. 732.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 613 of Pub. L. 89-329 was renumbered section 614
    and is classified to section 1130b of this title.

                                AMENDMENTS                            
      1992 - Pub. L. 102-325 amended section generally, adding
    provisions relating to establishment of linkages overseas with
    institutions of higher education and organizations that contribute
    to educational objectives of this section and relating to summer
    institutes in international business, foreign area and other
    international studies designed to carry out purposes of this
    section.
      1988 - Subsecs. (a), (c), (d). Pub. L. 100-418 substituted
    "section" for "part" wherever appearing.
      1986 - Subsec. (b)(10). Pub. L. 99-498 added par. (10).

                     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.

-End-



-CITE-
    20 USC Sec. 1130b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part B - Business and International Education Programs

-HEAD-
    Sec. 1130b. Authorization of appropriations

-STATUTE-
    (a) Centers for international business education
      There are authorized to be appropriated $11,000,000 for the
    fiscal year 1999 and such sums as may be necessary for each of the
    4 succeeding fiscal years to carry out the provisions of section
    1130-1 of this title.
    (b) Education and training programs
      There are authorized to be appropriated $7,000,000 for fiscal
    year 1999, and such sums as may be necessary for the 4 succeeding
    fiscal years, to carry out the provisions of section 1130a of this
    title.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 614, formerly Sec. 613, as added
    Pub. L. 96-374, title VI, Sec. 601(a), Oct. 3, 1980, 94 Stat. 1469;
    amended Pub. L. 99-498, title VI, Sec. 612, Oct. 17, 1986, 100
    Stat. 1519; renumbered Sec. 614 and amended Pub. L. 100-418, title
    VI, Secs. 6261(1), 6262, Aug. 23, 1988, 102 Stat. 1520, 1523; Pub.
    L. 101-600, Sec. 7, Nov. 16, 1990, 104 Stat. 3046; Pub. L. 102-325,
    title VI, Sec. 601, July 23, 1992, 106 Stat. 733; Pub. L. 105-244,
    title VI, Sec. 602(c), Oct. 7, 1998, 112 Stat. 1783.)


-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-244 substituted "1999" for "1993" in subsecs.
    (a) and (b).
      1992 - Pub. L. 102-325 amended section generally. Prior to
    amendment, section read as follows:
      "(a) There are authorized to be appropriated $7,500,000 for the
    fiscal year 1988 and for each of the 4 succeeding fiscal years to
    carry out the provisions of section 1130-1 of this title.
      "(b) There are authorized to be appropriated $5,000,000 for
    fiscal year 1987, and such sums as may be necessary for the 4
    succeeding fiscal years, to carry out the provisions of section
    1130a of this title."
      1990 - Subsec. (a). Pub. L. 101-600 substituted "$7,500,000" for
    "$5,000,000" and "4 succeeding" for "3 succeeding".
      1988 - Pub. L. 100-418, Sec. 6262, amended section generally.
    Prior to amendment, section read as follows: "There are authorized
    to be appropriated to carry out this part $5,000,000 for fiscal
    year 1987, and such sums as may be necessary for the 4 succeeding
    fiscal years."
      1986 - Pub. L. 99-498 amended section generally. Prior to
    amendment, section read as follows: "There are authorized to be
    appropriated $7,500,000 for fiscal year 1981 and for each of the
    succeeding fiscal years ending prior to October 1, 1985, to carry
    out the provisions of this part."

                     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.

-End-


-CITE-
    20 USC Part C - Institute for International Public Policy    01/03/2007 

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part C - Institute for International Public Policy

-HEAD-
            PART C - INSTITUTE FOR INTERNATIONAL PUBLIC POLICY        

-End-



-CITE-
    20 USC Sec. 1131                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part C - Institute for International Public Policy

-HEAD-
    Sec. 1131. Minority foreign service professional development
      program

-STATUTE-
    (a) Establishment
      The Secretary is authorized to award a grant, on a competitive
    basis, to an eligible recipient to enable such recipient to
    establish an Institute for International Public Policy (hereafter
    in this part referred to as the "Institute"). The Institute shall
    conduct a program to significantly increase the numbers of African
    Americans and other underrepresented minorities in the
    international service, including private international voluntary
    organizations and the foreign service of the United States. Such
    program shall include a program for such students to study abroad
    in their junior year, fellowships for graduate study, internships,
    intensive academic programs such as summer institutes, or intensive
    language training.
    (b) "Eligible recipient" defined
      (1) In general
        For the purpose of this part, the term "eligible recipient"
      means a consortium consisting of 1 or more of the following
      entities:
          (A) An institution eligible for assistance under part B of
        subchapter III of this chapter.
          (B) An institution of higher education which serves
        substantial numbers of African American or other
        underrepresented minority students.
          (C) An institution of higher education with programs in
        training foreign service professionals.
      (2) Host institution
        Each eligible recipient receiving a grant under this section
      shall designate an institution of higher education as the host
      institution for the Institute.
    (c) Application
      Each eligible recipient desiring a grant under this section shall
    submit an application at such time, in such manner, and accompanied
    by such information as the Secretary may reasonably require.
    (d) Duration
      Grants made pursuant to this section shall be awarded for a
    period not to exceed 5 years.
    (e) Match required
      The eligible recipient of a grant under this section shall
    contribute to the conduct of the program supported by the grant an
    amount from non-Federal sources equal to at least one-half the
    amount of the grant, which contribution may be in cash or in kind.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 621, as added Pub. L. 102-325,
    title VI, Sec. 601, July 23, 1992, 106 Stat. 734; amended Pub. L.
    105-244, title VI, Sec. 603(a), Oct. 7, 1998, 112 Stat. 1783.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1131, Pub. L. 89-329, title VI, Sec. 621, as
    added Pub. L. 96-374, title VI, Sec. 601(a), Oct. 3, 1980, 94 Stat.
    1469; amended Pub. L. 97-241, title III, Sec. 303(b), Aug. 24,
    1982, 96 Stat. 291; Pub. L. 99-498, title VI, Sec. 613, Oct. 17,
    1986, 100 Stat. 1519, related to advisory board on the conduct of
    programs under this subchapter, prior to repeal by Pub. L. 101-392,
    title VI, Secs. 612, 702(a), Sept. 25, 1990, 104 Stat. 842, 843,
    effective July 1, 1991.
      Another prior section 1131, Pub. L. 89-329, title VI, Sec. 621,
    Nov. 8, 1965, 79 Stat. 1266, related to grants for operating
    faculty development program workshops and institutes, prior to the
    general revision of this subchapter by Pub. L. 96-374.

                                AMENDMENTS                            
      1998 - Subsec. (e). Pub. L. 105-244 substituted "one-half" for
    "one-fourth".

                     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                          
      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.

-End-



-CITE-
    20 USC Sec. 1131-1                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part C - Institute for International Public Policy

-HEAD-
    Sec. 1131-1. Institutional development

-STATUTE-
    (a) In general
      The Institute shall award grants, from amounts available to the
    Institute for each fiscal year, to historically Black colleges and
    universities, Hispanic-serving institutions, Tribally Controlled
    Colleges or Universities, and minority institutions, to enable such
    colleges, universities, and institutions to strengthen
    international affairs programs.
    (b) Application
      No grant may be made by the Institute unless an application is
    made by the college, university, or institution at such time, in
    such manner, and accompanied by such information as the Institute
    may require.
    (c) Definitions
      In this section - 
        (1) the term "historically Black college and university" has
      the meaning given the term in section 1061 of this title;
        (2) the term "Hispanic-serving institution" has the meaning
      given the term in section 1101a of this title;
        (3) the term "Tribally Controlled College or University" has
      the meaning given the term in section 1801 of title 25; and
        (4) the term "minority institution" has the meaning given the
      term in section 1067k of this title.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 622, as added Pub. L. 105-244,
    title VI, Sec. 603(b)(2), Oct. 7, 1998, 112 Stat. 1784.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 622 of Pub. L. 89-329 was renumbered section 623
    and is classified to section 1131a of this title.
      Another prior section 622 of Pub. L. 89-329, title VI, as added
    Pub. L. 96-374, title VI, Sec. 601(a), Oct. 3, 1980, 94 Stat. 1470;
    amended Pub. L. 99-498, title VI, Sec. 614, Oct. 17, 1986, 100
    Stat. 1520, defined terms used in this subchapter and was
    classified to section 1132 of this title, prior to the general
    amendment of this subchapter by Pub. L. 102-325. For definitions,
    see section 1132 of this title.
      Another prior section 622 of Pub. L. 89-329, title VI, Nov. 8,
    1965, 79 Stat. 1266, related to stipends for persons attending
    faculty development program institutes and was classified to
    section 1132 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

                              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.

-End-



-CITE-
    20 USC Sec. 1131a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part C - Institute for International Public Policy

-HEAD-
    Sec. 1131a. Study abroad program

-STATUTE-
    (a) Program authority
      The Institute shall conduct, by grant or contract, a junior year
    abroad program. The junior year abroad program shall be open to
    eligible students at institutions of higher education, including
    historically Black colleges and universities as defined in section
    1061 of this title, tribally controlled Indian community colleges
    as defined in the Tribally Controlled College or University
    Assistance Act of 1978 [25 U.S.C. 1801 et seq.], and other
    institutions of higher education with significant minority student
    populations. Eligible student expenses shall be shared by the
    Institute and the institution at which the student is in
    attendance. Each student may spend not more than 9 months abroad in
    a program of academic study, as well as social, familial and
    political interactions designed to foster an understanding of and
    familiarity with the language, culture, economics and governance of
    the host country.
    (b) "Eligible student" defined
      For the purpose of this section, the term "eligible student"
    means a student that is - 
        (1) enrolled full-time in a baccalaureate degree program at an
      institution of higher education; and
        (2) entering the third year of study, or completing the third
      year of study in the case of a summer abroad program, at an
      institution of higher education which nominates such student for
      participation in the study abroad program.
    (c) Special rule
      An institution of higher education desiring to send a student on
    the study abroad program shall enter into a Memorandum of
    Understanding with the Institute under which such institution of
    higher education agrees to - 
        (1) provide the requisite academic preparation for students
      participating in the study abroad or internship programs;
        (2) pay one-third the cost of each student it nominates for
      participation in the study abroad program; and
        (3) meet such other requirements as the Secretary may from time
      to time, by regulation, reasonably require.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 623, formerly Sec. 622, as added
    Pub. L. 102-325, title VI, Sec. 601, July 23, 1992, 106 Stat. 734;
    renumbered Sec. 623 and amended Pub. L. 105-244, title VI, Sec.
    603(b)(1), (c), title IX, Sec. 901(d), Oct. 7, 1998, 112 Stat.
    1783, 1784, 1828.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Tribally Controlled College or University Assistance Act of
    1978, referred to in subsec. (a), is Pub. L. 95-471, Oct. 17, 1978,
    92 Stat. 1325, as amended, which is classified principally to
    chapter 20 (Sec. 1801 et seq.) of Title 25, Indians. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1801 of Title 25 and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 623 of Pub. L. 89-329 was renumbered section 624
    and is classified to section 1131b of this title.

                                AMENDMENTS                            
      1998 - Pub. L. 105-244, Sec. 603(c)(1), substituted "Study" for
    "Junior year" in section catchline.
      Subsec. (a). Pub. L. 105-244, Sec. 901(d), substituted "Tribally
    Controlled College or University Assistance Act of 1978" for
    "Tribally Controlled Community College Assistance Act of 1978".
      Subsec. (b)(2). Pub. L. 105-244, Sec. 603(c)(2), inserted ", or
    completing the third year of study in the case of a summer abroad
    program," after "year of study" and substituted "study abroad" for
    "junior year abroad".
      Subsec. (c). Pub. L. 105-244, Sec. 603(c)(3)(A), substituted
    "study abroad" for "junior year abroad" in introductory provisions.
      Subsec. (c)(1). Pub. L. 105-244, Sec. 603(c)(3)(B), substituted
    "study abroad" for "junior year abroad".
      Subsec. (c)(2). Pub. L. 105-244, Sec. 603(c)(3)(C), substituted
    "one-third" for "one-half" and "study abroad" for "junior year
    abroad".

                     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.

-End-



-CITE-
    20 USC Sec. 1131b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part C - Institute for International Public Policy

-HEAD-
    Sec. 1131b. Masters degree in international relations

-STATUTE-
      The Institute shall provide, in cooperation with the other
    members participating in the eligible recipient consortium, a
    program of study leading to a masters degree in international
    relations. The masters degree program designed by the consortia
    shall be reviewed and approved by the Secretary. The Institute may
    grant fellowships in an amount not to exceed the level of support
    comparable to that provided by the National Science Foundation
    graduate fellowships, except such amount shall be adjusted as
    necessary so as not to exceed the fellow's demonstrated level of
    need according to measurement of need approved by the Secretary. A
    fellowship recipient shall agree to undertake full-time study and
    to enter the international service (including work with private
    international voluntary organizations) or foreign service of the
    United States.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 624, formerly Sec. 623, as added
    Pub. L. 102-325, title VI, Sec. 601, July 23, 1992, 106 Stat. 735;
    renumbered Sec. 624, Pub. L. 105-244, title VI, Sec. 603(b)(1),
    Oct. 7, 1998, 112 Stat. 1783.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 624 of Pub. L. 89-329 was renumbered section 625
    and is classified to section 1131c of this title.

-End-



-CITE-
    20 USC Sec. 1131c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part C - Institute for International Public Policy

-HEAD-
    Sec. 1131c. Internships

-STATUTE-
    (a) In general
      The Institute shall enter into agreements with historically Black
    colleges and universities as defined in section 1061 of this title,
    tribally controlled Indian community colleges as defined in the
    Tribally Controlled College or University Assistance Act of 1978
    [25 U.S.C. 1801 et seq.], other institutions of higher education
    with significant numbers of minority students, and institutions of
    higher education with programs in training foreign service
    professionals, to provide academic year internships during the
    junior and senior year and summer internships following the
    sophomore and junior academic years, by work placements with an
    international voluntary or government organizations or agencies,
    including the Agency for International Development, the
    International Monetary Fund, the National Security Council, the
    Organization of American States, the Export-Import Bank, the
    Overseas Private Investment Corporation, the Department of State,
    Office of the United States Trade Representative, the World Bank,
    and the United Nations.
    (b) Postbaccalaureate internships
      The Institute shall enter into agreements with institutions of
    higher education described in the first sentence of subsection (a)
    of this section to conduct internships for students who have
    completed study for a baccalaureate degree. The internship program
    authorized by this subsection shall - 
        (1) assist the students to prepare for a master's degree
      program;
        (2) be carried out with the assistance of the Woodrow Wilson
      International Center for Scholars;
        (3) contain work experience for the students designed to
      contribute to the students' preparation for a master's degree
      program; and
        (4) be assisted by the Interagency Committee on Minority
      Careers in International Affairs established under subsection (c)
      of this section.
    (c) Interagency Committee on Minority Careers in International
      Affairs
      (1) Establishment
        There is established in the executive branch of the Federal
      Government an Interagency Committee on Minority Careers in
      International Affairs composed of not less than 7 members,
      including - 
          (A) the Under Secretary for Farm and Foreign Agricultural
        Services of the Department of Agriculture, or the Under
        Secretary's designee;
          (B) the Assistant Secretary and Director General, of the
        United States and Foreign Commercial Service of the Department
        of Commerce, or the Assistant Secretary and Director General's
        designee;
          (C) the Under Secretary of Defense for Personnel and
        Readiness of the Department of Defense, or the Under
        Secretary's designee;
          (D) the Assistant Secretary for Postsecondary Education in
        the Department of Education, or the Assistant Secretary's
        designee;
          (E) the Director General of the Foreign Service of the
        Department of State, or the Director General's designee;
          (F) the General Counsel of the Agency for International
        Development, or the General Counsel's designee; and
          (G) the Associate Director for Educational and Cultural
        Affairs of the United States Information Agency, or the
        Associate Director's designee.
      (2) Functions
        The Interagency Committee established by this section shall - 
          (A) on an annual basis inform the Secretary and the Institute
        regarding ways to advise students participating in the
        internship program assisted under this section with respect to
        goals for careers in international affairs;
          (B) locate for students potential internship opportunities in
        the Federal Government related to international affairs; and
          (C) promote policies in each department and agency
        participating in the Committee that are designed to carry out
        the objectives of this part.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 625, formerly Sec. 624, as added
    Pub. L. 102-325, title VI, Sec. 601, July 23, 1992, 106 Stat. 735;
    renumbered Sec. 625, and amended Pub. L. 105-244, title VI, Sec.
    603(b)(1), (d), title IX, Sec. 901(d), Oct. 7, 1998, 112 Stat.
    1783, 1784, 1828; Pub. L. 105-277, div. G, subdiv. A, title XIII,
    Sec. 1335(j), Oct. 21, 1998, 112 Stat. 2681-788.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Tribally Controlled College or University Assistance Act of
    1978, referred to in subsec. (a), is Pub. L. 95-471, Oct. 17, 1978,
    92 Stat. 1325, as amended, which is classified principally to
    chapter 20 (Sec. 1801 et seq.) of Title 25, Indians. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1801 of Title 25 and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 625 of Pub. L. 89-329 was renumbered section 626
    and is classified to section 1131d of this title.

                                AMENDMENTS                            
      1998 - Pub. L. 105-244, Sec. 603(d), designated existing
    provisions as subsec. (a), inserted heading, and added subsecs. (b)
    and (c).
      Subsec. (a). Pub. L. 105-277, which directed the amendment of
    "section 624 of Pub. L. 89-329 (20 U.S.C. 1131c)" by striking "the
    United States Information Agency," after "Agency for International
    Development,", was executed by making the amendment in subsec. (a)
    of this section, to reflect the probable intent of Congress and the
    intervening amendments by Pub. L. 105-244 which renumbered section
    624 of Pub. L. 89-329 as section 625 and redesignated existing
    provisions as subsec. (a). See above.
      Pub. L. 105-244, Sec. 901(d), substituted "Tribally Controlled
    College or University Assistance Act of 1978" for "Tribally
    Controlled Community College Assistance Act of 1978".

                     EFFECTIVE DATE OF 1998 AMENDMENTS                 
      Amendment by Pub. L. 105-277 effective Oct. 1, 1999, see section
    1301 of Pub. L. 105-277, set out as an Effective Date note under
    section 6531 of Title 22.
      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.

-End-



-CITE-
    20 USC Sec. 1131d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part C - Institute for International Public Policy

-HEAD-
    Sec. 1131d. Report

-STATUTE-
      The Institute shall annually prepare a report on the activities
    of the Institute and shall submit such report to the Secretary of
    Education and the Secretary of State.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 626, formerly Sec. 625, as added
    Pub. L. 102-325, title VI, Sec. 601, July 23, 1992, 106 Stat. 735;
    renumbered Sec. 626, Pub. L. 105-244, title VI, Sec. 603(b)(1),
    Oct. 7, 1998, 112 Stat. 1783.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 626 of Pub. L. 89-329 was renumbered section 627
    and is classified to section 1131e of this title.

-End-



-CITE-
    20 USC Sec. 1131e                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part C - Institute for International Public Policy

-HEAD-
    Sec. 1131e. Gifts and donations

-STATUTE-
      The Institute is authorized to receive money and other property
    donated, bequeathed, or devised to the Institute with or without a
    condition of restriction, for the purpose of providing financial
    support for the fellowships or underwriting the cost of the Junior
    Year Abroad Program. All funds or property given, devised, or
    bequeathed shall be retained in a separate account, and an
    accounting of those funds and property shall be included in the
    annual report described in section 1131d of this title.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 627, formerly Sec. 626, as added
    Pub. L. 102-325, title VI, Sec. 601, July 23, 1992, 106 Stat. 736;
    renumbered Sec. 627, and amended Pub. L. 105-244, title VI, Sec.
    603(b)(1), (f), Oct. 7, 1998, 112 Stat. 1783, 1785.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 627 of Pub. L. 89-329 was renumbered section 628
    and is classified to section 1131f of this title.

                                AMENDMENTS                            
      1998 - Pub. L. 105-244, Sec. 603(f), made technical amendment to
    reference in original act which appears in text as reference to
    section 1131d 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.

-End-



-CITE-
    20 USC Sec. 1131f                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part C - Institute for International Public Policy

-HEAD-
    Sec. 1131f. Authorization of appropriations

-STATUTE-
      There is authorized to be appropriated $10,000,000 for fiscal
    year 1999 and such sums as may be necessary for each of the 4
    succeeding fiscal years to carry out this part.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 628, formerly Sec. 627, as added
    Pub. L. 102-325, title VI, Sec. 601, July 23, 1992, 106 Stat. 736;
    renumbered Sec. 628, and amended Pub. L. 105-244, title VI, Sec.
    603(b)(1), (g), Oct. 7, 1998, 112 Stat. 1783, 1786.)


-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-244, Sec. 603(g), substituted "1999" for
    "1993".

                     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.

-End-


-CITE-
    20 USC Part D - General Provisions                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part D - General Provisions

-HEAD-
                        PART D - GENERAL PROVISIONS                    

-End-



-CITE-
    20 USC Sec. 1132                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part D - General Provisions

-HEAD-
    Sec. 1132. Definitions

-STATUTE-
    (a) Definitions
      As used in this subchapter - 
        (1) the term "area studies" means a program of comprehensive
      study of the aspects of a society or societies, including study
      of its history, culture, economy, politics, international
      relations and languages;
        (2) the term "international business" means profit-oriented
      business relationships conducted across national boundaries and
      includes activities such as the buying and selling of goods,
      investments in industries, the licensing of processes, patents
      and trademarks, and the supply of services;
        (3) the term "export education" means educating, teaching and
      training to provide general knowledge and specific skills
      pertinent to the selling of goods and services to other
      countries, including knowledge of market conditions, financial
      arrangements, laws and procedures;
        (4) the term "internationalization of curricula" means the
      incorporation of international or comparative perspectives in
      existing courses of study or the addition of new components to
      the curricula to provide an international context for American
      business education;
        (5) the term "comprehensive language and area center" means an
      administrative unit of a university that contributes
      significantly to the national interest in advanced research and
      scholarship, employs a critical mass of scholars in diverse
      disciplines related to a geographic concentration, offers
      intensive language training in languages of its area
      specialization, maintains important library collections related
      to the area, and makes training available in language and area
      studies to a graduate, postgraduate, and undergraduate clientele;
      and
        (6) the term "undergraduate language and area center" means an
      administrative unit of an institution of higher education,
      including but not limited to 4-year colleges, that contributes
      significantly to the national interest through the education and
      training of students who matriculate into advanced language and
      area studies programs, professional school programs, or
      incorporates substantial international and foreign language
      content into baccalaureate degree programs, engages in research,
      curriculum development and community outreach activities designed
      to broaden international and foreign language knowledge, employs
      faculty with strong language, area, and international studies
      credentials, maintains library holdings, including basic
      reference works, journals, and works in translation, and makes
      training available predominantly to undergraduate students;
        (7) the term "critical languages" means each of the languages
      contained in the list of critical languages designated by the
      Secretary pursuant to section 212(d) of the Education for
      Economic Security Act (50 Fed. Reg. 149, 31413), except that, in
      the implementation of this definition, the Secretary may set
      priorities according to the purposes of this subchapter;
        (8) the term "institution of higher education" means, in
      addition to institutions which meet the definition of section
      1001 of this title, institutions which meet the requirements of
      section 1001 of this title except that (1) they are not located
      in the United States, and (2) they apply for assistance under
      this subchapter in consortia with institutions which meet the
      definition of section 1001 of this title; and
        (9) the term "educational programs abroad" means programs of
      study, internships, or service learning outside the United States
      which are part of a foreign language or other international
      curriculum at the undergraduate or graduate education levels.
    (b) Special conditions
      All references to individuals or organizations, unless the
    context otherwise requires, mean individuals who are citizens or
    permanent residents of the United States or organizations which are
    organized or incorporated in the United States.

-SOURCE-
    (Pub. L. 89-329, title VI, Sec. 631, as added Pub. L. 102-325,
    title VI, Sec. 601, July 23, 1992, 106 Stat. 736; amended Pub. L.
    105-244, title I, Sec. 102(b)(8), title VI, Sec. 604(a), Oct. 7,
    1998, 112 Stat. 1622, 1786.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 212(d) of the Education for Economic Security Act,
    referred to in subsec. (a)(7), is section 212(d) of Pub. L. 98-377,
    title II, Aug. 11, 1984, 98 Stat. 1281, as amended, which was
    classified to section 3972(d) of this title and was repealed by
    Pub. L. 100-297, title II, Sec. 2303, Apr. 28, 1988, 102 Stat. 324.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1132, Pub. L. 89-329, title VI, Sec. 622, as
    added Pub. L. 96-374, title VI, Sec. 601(a), Oct. 3, 1980, 94 Stat.
    1470; amended Pub. L. 99-498, title VI, Sec. 614, Oct. 17, 1986,
    100 Stat. 1520, defined terms used in this subchapter, prior to the
    general revision of this subchapter by Pub. L. 102-325.
      Another prior section 1132, Pub. L. 89-329, title VI, Sec. 622,
    Nov. 8, 1965, 79 Stat. 1266, related to stipends for persons
    attending faculty development program institutes, prior to the
    general revision of this subchapter by Pub. L. 96-374.

                                AMENDMENTS                            
      1998 - Subsec. (a)(8). Pub. L. 105-244, Sec. 102(b)(8),
    substituted "section 1001" for "section 1141(a)" in two places and
    "of section 1001" for "of 1141(a)".
      Subsec. (a)(9). Pub. L. 105-244, Sec. 604(a), added par. (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.

                              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.

-End-



-CITE-
    20 USC Sec. 1132-1                                          01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VI - INTERNATIONAL EDUCATION PROGRAMS
    Part D - General Provisions

-HEAD-
    Sec. 1132-1. Repealed.

-MISC1-
    Sec. 1132-1. Repealed. Pub. L. 105-244, title VI, Sec. 604(b), Oct.
      7, 1998, 112 Stat. 1786.
      Section, Pub. L. 89-329, title VI, Sec. 632, as added Pub. L. 102-
    325, title VI, Sec. 601, July 23, 1992, 106 Stat. 737, related to
    preservation of pre-1992 programs.

                         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.

-End-


-CITE-
    20 USC SUBCHAPTER VII - GRADUATE AND POSTSECONDARY
           IMPROVEMENT PROGRAMS                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

-HEAD-
     SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS 

-COD-
                               CODIFICATION                           
      Title VII of the Higher Education Act of 1965, comprising this
    subchapter, was originally enacted by Pub. L. 89-329, title VII,
    Nov. 8, 1965, 79 Stat. 1266; amended Pub. L. 92-318, June 23, 1972,
    86 Stat. 235; Pub. L. 94-482, Oct. 12, 1976, 90 Stat. 2081; Pub. L.
    95-43, June 15, 1977, 91 Stat. 213; Pub. L. 96-49, Aug. 13, 1979,
    93 Stat. 351; Pub. L. 96-374, Oct. 3, 1980, 94 Stat. 1367; Pub. L.
    99-498, Oct. 17, 1986, 100 Stat. 1268; Pub. L. 100-50, June 3,
    1987, 101 Stat. 335; Pub. L. 100-203, Dec. 22, 1987, 101 Stat.
    1330; Pub. L. 100-369, July 18, 1988, 102 Stat. 835; Pub. L. 102-
    325, July 23, 1992, 106 Stat. 448; Pub. L. 103-208, Dec. 20, 1993,
    107 Stat. 2457; Pub. L. 103-382, Oct. 20, 1994, 108 Stat. 3518;
    Pub. L. 104-208, Sept. 30, 1996, 110 Stat. 3009. Title VII is shown
    herein, however, as having been added by Pub. L. 105-244, title
    VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1786, without reference to
    those intervening amendments because of the extensive revision of
    title VII by Pub. L. 105-244.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1132a, Pub. L. 89-329, title VII, Sec. 701, as
    added Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat.
    1520; amended Pub. L. 100-50, Sec. 19(1), June 3, 1987, 101 Stat.
    360; Pub. L. 102-325, title VII, Sec. 701, July 23, 1992, 106 Stat.
    737, authorized programs of assistance for construction,
    reconstruction, and renovation of academic facilities, prior to the
    general amendment of this subchapter by Pub. L. 105-244.
      Another prior section 1132a, Pub. L. 89-329, title VII, Sec. 701,
    as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1472, related to purpose of programs of financial assistance
    to institutions of higher education and to higher education
    building agencies, prior to the general amendment of this
    subchapter by Pub. L. 99-498.
      Another prior section 1132a, Pub. L. 89-329, title VII, Sec. 701,
    as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86
    Stat. 288; amended Pub. L. 94-482, title I, Secs. 161(a),
    162(a)(3), (b), Oct. 12, 1976, 90 Stat. 2156, 2157; Pub. L. 96-49,
    Sec. 8(a), Aug. 13, 1979, 93 Stat. 353, authorized appropriations
    for a program of grants for the construction, reconstruction, and
    renovation of undergraduate facilities, prior to the general
    amendment of this subchapter by Pub. L. 96-374.
      A prior section 1132a-1, Pub. L. 89-329, title VII, Sec. 702, as
    added Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat.
    1521; amended Pub. L. 100-50, Sec. 19(2), June 3, 1987, 101 Stat.
    360; Pub. L. 102-325, title VII, Sec. 702, July 23, 1992, 106 Stat.
    738, related to prior rights and obligations prior to the general
    amendment of this subchapter by Pub. L. 105-244. For similar
    provisions, see section 1011j of this title.
      Another prior section 1132a-1, Pub. L. 89-329, title VII, Sec.
    702, as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1472, authorized appropriations for fiscal years 1981 to 1985
    to carry out programs for construction, reconstruction, and
    renovation of academic facilities, prior to the general amendment
    of this subchapter by Pub. L. 99-498.
      Prior sections 1132a-1 to 1132a-7 were omitted in the general
    amendment of this subchapter by Pub. L. 96-374.
      Section 1132a-1, Pub. L. 89-329, title VII, Sec. 702, as added
    Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86 Stat. 288;
    amended Pub. L. 94-482, title I, Sec. 162(a)(3), Oct. 12, 1976, 90
    Stat. 2156, provided for allotments of funds to public community
    colleges and technical institutes.
      Section 1132a-2, Pub. L. 89-329, title VII, Sec. 703, as added
    Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86 Stat. 290;
    amended Pub. L. 94-482, title I, Sec. 162(a)(3), Oct. 12, 1976, 90
    Stat. 2156, related to allotments to institutions of higher
    education other than public community colleges and public technical
    institutes.
      Section 1132a-3, Pub. L. 89-329, title VII, Sec. 704, as added
    Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86 Stat. 290;
    amended Pub. L. 94-482, title I, Sec. 162(a)(3), (c), Oct. 12,
    1976, 90 Stat. 2156, 2157, set out the requirements of State plans.
      Section 1132a-4, Pub. L. 89-329, title VII, Sec. 705, as added
    Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86 Stat. 291;
    amended Pub. L. 94-482, title I, Sec. 162(a)(3), (4), (d), Oct. 12,
    1976, 90 Stat. 2156, 2157, related to the eligibility of
    institutions for grants.
      Section 1132a-5, Pub. L. 89-329, title VII, Sec. 706, as added
    Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86 Stat. 292;
    amended Pub. L. 94-482, title I, Sec. 162(a)(3), Oct. 12, 1976, 90
    Stat. 2156, related to the basic criteria to be applied to State
    plans.
      Section 1132a-6, Pub. L. 89-329, title VII, Sec. 707, as added
    Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86 Stat. 292;
    amended Pub. L. 94-482, title I, Sec. 162(a)(3), (5), Oct. 12,
    1976, 90 Stat. 2156, 2157, related to applications for grants for
    construction, renovation, and reconstruction of undergraduate
    facilities.
      Section 1132a-7, Pub. L. 89-329, title VII, Sec. 708, as added
    Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86 Stat. 293,
    related to the disapproval of State plans and to judicial review.
      A prior section 1132b, Pub. L. 89-329, title VII, Sec. 711, as
    added Pub. L. 102-325, title VII, Sec. 703, July 23, 1992, 106
    Stat. 738, provided that former part A of this subchapter could be
    cited as the "Higher Education Facilities Act of 1992", prior to
    the general amendment of this subchapter by Pub. L. 105-244.
      Another prior section 1132b, Pub. L. 89-329, title VII, Sec. 711,
    as added Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100
    Stat. 1522, related to State plans for construction,
    reconstruction, and renovation of undergraduate academic
    facilities, prior to the general amendment of part A of this
    subchapter by Pub. L. 102-325.
      Another prior section 1132b, Pub. L. 89-329, title VII, Sec. 711,
    as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1473, required submission of State plans, prior to the
    general amendment of this subchapter by Pub. L. 99-498.
      Another prior section 1132b, Pub. L. 89-329, title VII, Sec. 721,
    as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86
    Stat. 294; amended Pub. L. 94-482, title I, Secs. 161(b), 162(e),
    Oct. 12, 1976, 90 Stat. 2156, 2157; Pub. L. 96-49, Sec. 8(b), Aug.
    13, 1979, 93 Stat. 353, set out Congressional declaration of
    purpose, grant of authority, and authorization of appropriations
    for the program of grants for construction, reconstruction, and
    renovation of graduate academic facilities, prior to the general
    amendment of this subchapter by Pub. L. 96-374.
      A prior section 1132b-1, Pub. L. 89-329, title VII, Sec. 712, as
    added Pub. L. 102-325, title VII, Sec. 703, July 23, 1992, 106
    Stat. 738, stated findings of Congress, prior to the general
    amendment of this subchapter by Pub. L. 105-244.
      Another prior section 1132b-1, Pub. L. 89-329, title VII, Sec.
    712, as added Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986,
    100 Stat. 1522, related to basic criteria for consideration of
    State plans, prior to the general amendment of part A of this
    subchapter by Pub. L. 102-325.
      Another prior section 1132b-1, Pub. L. 89-329, title VII, Sec.
    712, as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1473, related to basic criteria for consideration of State
    plans, prior to the general amendment of this subchapter by Pub. L.
    99-498.
      Another prior section 1132b-1, Pub. L. 89-329, title VII, Sec.
    722, as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972,
    86 Stat. 294, related to authority to make grants to eligible
    institutions, prior to the general amendment of this subchapter by
    Pub. L. 96-374.
      A prior section 1132b-2, Pub. L. 89-329, title VII, Sec. 713, as
    added Pub. L. 102-325, title VII, Sec. 703, July 23, 1992, 106
    Stat. 738, related to distribution of assistance, prior to the
    general amendment of this subchapter by Pub. L. 105-244.
      Another prior section 1132b-2, Pub. L. 89-329, title VII, Sec.
    713, as added Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986,
    100 Stat. 1522, related to allotment of funds, prior to the general
    amendment of part A of this subchapter by Pub. L. 102-325.
      Another prior section 1132b-2, Pub. L. 89-329, title VII, Sec.
    713, as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1473, related to allotment of appropriations among States,
    prior to the general amendment of this subchapter by Pub. L. 99-
    498.
      Prior sections 1132b-3 to 1132b-5 were omitted in the general
    amendment of this subchapter by Pub. L. 105-244.
      Section 1132b-3, Pub. L. 89-329, title VII, Sec. 714, as added
    Pub. L. 102-325, title VII, Sec. 703, July 23, 1992, 106 Stat. 740;
    amended Pub. L. 103-208, Sec. 2(j)(14), Dec. 20, 1993, 107 Stat.
    2481, related to use of funds.
      Section 1132b-4, Pub. L. 89-329, title VII, Sec. 715, as added
    Pub. L. 102-325, title VII, Sec. 703, July 23, 1992, 106 Stat. 740;
    amended Pub. L. 103-208, Sec. 2(j)(15), Dec. 20, 1993, 107 Stat.
    2481, related to applications for allotments and grants.
      Section 1132b-5, Pub. L. 89-329, title VII, Sec. 716, as added
    Pub. L. 102-325, title VII, Sec. 703, July 23, 1992, 106 Stat. 741,
    authorized appropriations for former part A of this subchapter.
      A prior section 1132c, Pub. L. 89-329, title VII, Sec. 721, as
    added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106
    Stat. 741, which stated findings of Congress, was renumbered
    section 341 of title III of Pub. L. 89-329 by Pub. L. 105-244,
    title III, Sec. 301(a)(3), (4), Oct. 7, 1998, 112 Stat. 1636, and
    transferred to section 1066 of this title.
      Another prior section 1132c, Pub. L. 89-329, title VII, Sec. 721,
    as added Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100
    Stat. 1524, related to grants for construction, reconstruction, and
    renovation of graduate academic facilities, prior to the general
    amendment of part B of this subchapter by Pub. L. 102-325.
      Another prior section 1132c, Pub. L. 89-329, title VII, Sec. 721,
    as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1475, authorized grants to graduate institutions of higher
    education, prior to the general amendment of this subchapter by
    Pub. L. 99-498.
      Another prior section 1132c, Pub. L. 89-329, title VII, Sec. 741,
    as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86
    Stat. 295; amended Pub. L. 94-482, title I, Secs. 161(c),
    162(a)(3), Oct. 12, 1976, 90 Stat. 2156; Pub. L. 96-49, Sec.
    8(c)(1), Aug. 13, 1979, 93 Stat. 353, set out grant of authority
    and authorization of appropriations for program of loans for
    construction, reconstruction, and renovation of academic
    facilities, prior to the general amendment of this subchapter by
    Pub. L. 96-374.
      A prior section 1132c-1, Pub. L. 89-329, title VII, Sec. 722, as
    added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106
    Stat. 742, which defined terms, was renumbered section 342 of title
    III of Pub. L. 89-329 by Pub. L. 105-244, title III, Sec.
    301(a)(3), (4), Oct. 7, 1998, 112 Stat. 1636, and transferred to
    section 1066a of this title.
      Another prior section 1132c-1, Pub. L. 89-329, title VII, Sec.
    742, as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972,
    86 Stat. 295; amended Pub. L. 94-482, title I, Sec. 162(a)(3), (6),
    Oct. 12, 1976, 90 Stat. 2156, 2157, related to eligibility,
    conditions, amounts, and terms of loans for construction,
    reconstruction, and renovation of academic facilities, prior to the
    general amendment of this subchapter by Pub. L. 96-374.
      A prior section 1132c-2, Pub. L. 89-329, title VII, Sec. 723, as
    added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106
    Stat. 743, and amended, which related to Federal insurance for
    bonds, was renumbered section 343 of title III of Pub. L. 89-329 by
    Pub. L. 105-244, title III, Sec. 301(a)(3), (4), Oct. 7, 1998, 112
    Stat. 1636, and transferred to section 1066b of this title.
      Another prior section 1132c-2, Pub. L. 89-329, title VII, Sec.
    743, as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972,
    86 Stat. 296; amended Pub. L. 94-482, title I, Sec. 162(f), Oct.
    12, 1976, 90 Stat. 2157, contained general provisions covering
    programs of loans for construction, reconstruction, and renovation
    of academic facilities, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      A prior section 1132c-3, Pub. L. 89-329, title VII, Sec. 724, as
    added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106
    Stat. 745, which related to limitations on Federal insurance for
    bonds issued by designated bonding authority, was renumbered
    section 344 of title III of Pub. L. 89-329 by Pub. L. 105-244,
    title III, Sec. 301(a)(3), (4), Oct. 7, 1998, 112 Stat. 1636, and
    transferred to section 1066c of this title.
      Another prior section 1132c-3, Pub. L. 89-329, title VII, Sec.
    744, as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972,
    86 Stat. 296, provided for creation of Revolving Loan Fund and
    Insurance Fund, prior to the general amendment of this subchapter
    by Pub. L. 96-374.
      A prior section 1132c-4, Pub. L. 89-329, title VII, Sec. 725, as
    added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106
    Stat. 745, and amended, which related to authority of Secretary,
    was renumbered section 345 of title III of Pub. L. 89-329 by Pub.
    L. 105-244, title III, Sec. 301(a)(3), (4), Oct. 7, 1998, 112 Stat.
    1636, and transferred to section 1066d of this title.
      Another prior section 1132c-4, Pub. L. 89-329, title VII, Sec.
    745, as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972,
    86 Stat. 297; amended Pub. L. 94-482, title I, Secs. 161(d),
    162(a)(3), (g), Oct. 12, 1976, 90 Stat. 2156, 2157; Pub. L. 95-43,
    Sec. 1(b)(6), June 15, 1977, 91 Stat. 218; Pub. L. 96-49, Sec.
    8(c)(2), Aug. 13, 1979, 93 Stat. 353, related to annual interest
    grants, prior to the general amendment of this subchapter by Pub.
    L. 96-374.
      A prior section 1132c-5, Pub. L. 89-329, title VII, Sec. 726, as
    added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106
    Stat. 746, and amended, which restricted receipt of grants under
    former part A of this subchapter, was renumbered section 346 of
    title III of Pub. L. 89-329 by Pub. L. 105-244, title III, Sec.
    301(a)(3), (4), Oct. 7, 1998, 112 Stat. 1636, transferred to
    section 1066e of this title, and subsequently repealed.
      Another prior section 1132c-5, Pub. L. 89-329, title VII, Sec.
    746, as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972,
    86 Stat. 298; amended Pub. L. 94-482, title I, Sec. 162(a)(3), Oct.
    12, 1976, 90 Stat. 2156, related to academic facilities loan
    insurance, prior to the general amendment of this subchapter by
    Pub. L. 96-374.
      A prior section 1132c-6, Pub. L. 89-329, title VII, Sec. 727, as
    added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106
    Stat. 746, which related to HBCU Capital Financing Advisory Board,
    was renumbered section 347 of title III of Pub. L. 89-329 by Pub.
    L. 105-244, title III, Sec. 301(a)(3), (4), Oct. 7, 1998, 112 Stat.
    1636, and transferred to section 1066f of this title.
      A prior section 1132c-7, Pub. L. 89-329, title VII, Sec. 728, as
    added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106
    Stat. 747, which related to minority business enterprise
    utilization, was renumbered section 348 of title III of Pub. L. 89-
    329 by Pub. L. 105-244, title III, Sec. 301(a)(3), (4), Oct. 7,
    1998, 112 Stat. 1636, and transferred to section 1066g of this
    title.
      A prior section 1132d, Pub. L. 89-329, title VII, Sec. 731, as
    added Pub. L. 102-325, title VII, Sec. 705, July 23, 1992, 106
    Stat. 747; amended Pub. L. 103-208, Sec. 2(j)(18), (19), Dec. 20,
    1993, 107 Stat. 2481, related to Federal assistance in form of
    loans, prior to the general amendment of this subchapter by Pub. L.
    105-244.
      Another prior section 1132d, Pub. L. 89-329, title VII, Sec. 731,
    as added Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100
    Stat. 1525; amended Pub. L. 100-50, Sec. 19(3), June 3, 1987, 101
    Stat. 360, related to eligibility conditions, amounts, and terms of
    loans for construction, reconstruction, and renovation of academic
    facilities, prior to the general amendment of part C of this
    subchapter by Pub. L. 102-325.
      Another prior section 1132d, Pub. L. 89-329, title VII, Sec. 731,
    as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1475, related to eligibility conditions, amounts, and terms
    of loans for construction, reconstruction, and renovation of
    academic facilities, prior to the general amendment of this
    subchapter by Pub. L. 99-498.
      Another prior section 1132d, Pub. L. 89-329, title VII, Sec. 761,
    as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86
    Stat. 299, authorized appropriations for the program of assistance
    to major disaster areas, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      A prior section 1132d-1, Pub. L. 89-329, title VII, Sec. 732, as
    added Pub. L. 102-325, title VII, Sec. 705, July 23, 1992, 106
    Stat. 748, contained general provisions relating to functions,
    powers, and duties of the Secretary under former part C of this
    subchapter, prior to the general amendment of this subchapter by
    Pub. L. 105-244.
      Another prior section 1132d-1, Pub. L. 89-329, title VII, Sec.
    732, as added Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986,
    100 Stat. 1526; amended Pub. L. 100-369, Sec. 7(c), July 18, 1988,
    102 Stat. 837, set out general provisions for loan program, prior
    to the general amendment of part C of this subchapter by Pub. L.
    102-325.
      Another prior section 1132d-1, Pub. L. 89-329, title VII, Sec.
    732, as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1475, set out general provisions for program of loans for
    construction, reconstruction, and renovation of academic
    facilities, prior to the general amendment of this subchapter by
    Pub. L. 99-498.
      Another prior section 1132d-1, Pub. L. 89-329, title VII, Sec.
    762, as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972,
    86 Stat. 299; amended Pub. L. 94-482, title I, Secs. 161(e),
    162(h), Oct. 12, 1979, 90 Stat. 2156, 2157, provided for disaster
    assistance for replacement or restoration of academic facilities,
    prior to the general amendment of this subchapter by Pub. L. 96-
    374.
      A prior section 1132d-2, Pub. L. 89-329, title VII, Sec. 733, as
    added Pub. L. 102-325, title VII, Sec. 705, July 23, 1992, 106
    Stat. 750, related to apportionment of funds, prior to the general
    amendment of this subchapter by Pub. L. 105-244.
      Another prior section 1132d-2, Pub. L. 89-329, title VII, Sec.
    733, as added Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986,
    100 Stat. 1527; amended Pub. L. 100-50, Sec. 19(4), June 3, 1987,
    101 Stat. 360, related to revolving loan fund, prior to the general
    amendment of part C of this subchapter by Pub. L. 102-325.
      Another prior section 1132d-2, Pub. L. 89-329, title VII, Sec.
    733, as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1476, related to revolving loan and insurance fund, prior to
    the general amendment of this subchapter by Pub. L. 99-498.
      Another prior section 1132d-2, Pub. L. 89-329, title VII, Sec.
    763, as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972,
    86 Stat. 300, related to grants for the purchase of equipment and
    supplies, prior to the general amendment of this subchapter by Pub.
    L. 96-374.
      A prior section 1132d-3, Pub. L. 89-329, title VII, Sec. 734, as
    added Pub. L. 102-325, title VII, Sec. 705, July 23, 1992, 106
    Stat. 751; amended Pub. L. 103-208, Sec. 2(j)(20), Dec. 20, 1993,
    107 Stat. 2481, defined terms, prior to the general amendment of
    this subchapter by Pub. L. 105-244.
      Another prior section 1132d-3, Pub. L. 89-329, title VII, Sec.
    734, as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1477, related to annual interest grants to assist
    institutions of higher education and higher education building
    agencies, prior to the general amendment of this subchapter by Pub.
    L. 99-498.
      Another prior section 1132d-3, Pub. L. 89-329, title VII, Sec.
    764, as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972,
    86 Stat. 300, related to repayable assistance in lieu of a grant,
    prior to the general amendment of this subchapter by Pub. L. 96-
    374.
      A prior section 1132d-4, Pub. L. 89-329, title VII, Sec. 735, as
    added Pub. L. 102-325, title VII, Sec. 705, July 23, 1992, 106
    Stat. 753, authorized appropriations for former part C of this
    subchapter, prior to the general amendment of this subchapter by
    Pub. L. 105-244.
      Another prior section 1132d-4, Pub. L. 89-329, title VII, Sec.
    735, as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1477, related to academic facilities loan insurance, prior to
    the general amendment of this subchapter by Pub. L. 99-498.
      Another prior section 1132d-4, Pub. L. 89-329, title VII, Sec.
    765, as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972,
    86 Stat. 300, related to applications for assistance to
    institutions of higher education, prior to the general amendment of
    this subchapter by Pub. L. 96-374.
      Prior sections 1132d-5 and 1132d-11 were omitted in the general
    amendment of this subchapter by Pub. L. 96-374.
      Section 1132d-5, Pub. L. 89-329, title VII, Sec. 766, as added
    Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86 Stat. 300,
    defined "major disaster" and "public institution of higher
    education".
      Section 1132d-11, Pub. L. 89-329, title VII, Sec. 771, as added
    Pub. L. 94-482, title I, Sec. 162(i), Oct. 12, 1976, 90 Stat. 2157;
    amended Pub. L. 95-43, Sec. 1(a)(43), June 15, 1977, 91 Stat. 217,
    provided for a program of grants or loans for reconstruction or
    renovation of academic facilities.
      A prior section 1132e, Pub. L. 89-329, title VII, Sec. 741, as
    added Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat.
    1528, provided for annual interest grants to assist institutions of
    higher education in reducing the cost of borrowing money, prior to
    repeal by Pub. L. 102-325, Sec. 2, title VII, Sec. 706, July 23,
    1992, 106 Stat. 458, 753, effective Oct. 1, 1992.
      Another prior section 1132e, Pub. L. 89-329, title VII, Sec. 741,
    as added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94
    Stat. 1478, related to recovery of payments of grants and use of
    projects, prior to the general amendment of this subchapter by Pub.
    L. 99-498.
      Another prior section 1132e, Pub. L. 89-329, title VII, Sec. 781,
    as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972, 86
    Stat. 300; amended Pub. L. 94-482, title I, Sec. 162(a)(3), (4),
    Oct. 12, 1976, 90 Stat. 2156, 2157; Pub. L. 95-43, Sec. 1(a)(44),
    June 15, 1977, 91 Stat. 218, related to the recovery of payments,
    prior to the general amendment of this subchapter by Pub. L. 96-
    374.
      A prior section 1132e-1, Pub. L. 89-329, title VII, Sec. 742, as
    added Pub. L. 96-374, title VII, Sec. 701, Oct. 3, 1980, 94 Stat.
    1479, defined terms used in this subchapter, prior to the general
    amendment of this subchapter by Pub. L. 99-498.
      Another prior section 1132e-1, Pub. L. 89-329, title VII, Sec.
    782, as added Pub. L. 92-318, title I, Sec. 161(a), June 23, 1972,
    86 Stat. 301; amended Pub. L. 94-482, title I, Sec. 162(a)(3), (4),
    (j), Oct. 12, 1976, 90 Stat. 2156-2158, defined terms used in this
    subchapter, prior to the general amendment of this subchapter by
    Pub. L. 96-374.
      Prior sections 1132f to 1132f-9 were repealed by Pub. L. 104-208,
    div. A, title I, Sec. 101(e) [title VI, Sec. 603(d)], Sept. 30,
    1996, 110 Stat. 3009-233, 3009-293.
      Section 1132f, Pub. L. 89-329, title VII, Sec. 751, as added Pub.
    L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1528,
    related to congressional declaration of purpose of this part to
    authorize participation of United States Government and Student
    Loan Marketing Association in private, for profit corporation known
    as College Construction Loan Insurance Association, and defined
    "education facilities purpose".
      Section 1132f-1, Pub. L. 89-329, title VII, Sec. 752, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1529;
    amended Pub. L. 102-325, title VII, Sec. 707(b), July 23, 1992, 106
    Stat. 753, related to criteria used by Corporation for providing
    guarantees and insurance on obligations issued for education
    facilities purposes.
      Section 1132f-2, Pub. L. 89-329, title VII, Sec. 753, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1530,
    related to process of organizing Corporation.
      Section 1132f-3, Pub. L. 89-329, title VII, Sec. 754, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1531,
    related to operation and election of Corporation's Board of
    Directors.
      Section 1132f-4, Pub. L. 89-329, title VII, Sec. 755, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1531,
    related to initial capitalization of Corporation.
      Section 1132f-5, Pub. L. 89-329, title VII, Sec. 756, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1532,
    related to issuance of nonvoting stock and debt to public.
      Section 1132f-6, Pub. L. 89-329, title VII, Sec. 757, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1532,
    provided that no obligation which is insured, guaranteed, or
    otherwise backed by Corporation be deemed to be guaranteed by full
    faith and credit of United States or guaranteed by Student Loan
    Marketing Association, with provision that this section not affect
    determination of whether such obligation is guaranteed for purposes
    of Federal income taxes.
      Section 1132f-7, Pub. L. 89-329, title VII, Sec. 758, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1532,
    related to authority of Secretary to sell common stock of
    Corporation and Student Loan Marketing Association's right of first
    refusal.
      Section 1132f-8, Pub. L. 89-329, title VII, Sec. 759, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1533,
    related to use of stock sale proceeds.
      Section 1132f-9, Pub. L. 89-329, title VII, Sec. 760, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1533,
    provided for audits and reports to President and Congress.
      A prior section 1132f-10, Pub. L. 104-208, div. A, title I, Sec.
    101(e) [title VI, Sec. 603], Sept. 30, 1996, 110 Stat. 3009-233,
    3009-290, which related to Connie Lee privatization, was
    transferred to section 1155 of this title.
      Prior sections 1132g to 1132g-3 and 1132h to 1132h-6 were
    repealed by Pub. L. 102-325, Sec. 2, title VII, Sec. 706, July 23,
    1992, 106 Stat. 458, 753, effective Oct. 1, 1992.
      Section 1132g, Pub. L. 89-329, title VII, Sec. 761, as added Pub.
    L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1533,
    related to Federal assistance to undergraduate postsecondary
    educational institutions in form of loans.
      Section 1132g-1, Pub. L. 89-329, title VII, Sec. 762, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1535;
    amended Pub. L. 100-369, Sec. 7(c), July 18, 1988, 102 Stat. 837,
    set out general provisions applicable to loans, including budget
    and accounting, use of funds, legal powers of Secretary in loan
    program, and limitations.
      Section 1132g-2, Pub. L. 89-329, title VII, Sec. 763, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1537,
    directed that not more than 12.5 percent of loan funds be made
    available in any one State and set priorities as to types of
    projects to be approved.
      Section 1132g-3, Pub. L. 89-329, title VII, Sec. 764, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1537;
    amended Pub. L. 100-50, Sec. 19(5), June 3, 1987, 101 Stat. 360,
    defined terms used in sections 1132g to 1132g-3 of this title.
      Section 1132h, Pub. L. 89-329, title VII, Sec. 771, as added Pub.
    L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1539,
    provided for financial assistance to Eastern Michigan University in
    Ypsilanti, Michigan, for renovation and restoration of Welch Hall.
      Section 1132h-1, Pub. L. 89-329, title VII, Sec. 772, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1539,
    provided for financial assistance to Rochester Institute of
    Technology in Rochester, New York, for Federal share of
    construction and related costs of Academic Health Education Center
    facility.
      Section 1132h-2, Pub. L. 89-329, title VII, Sec. 773, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1540,
    provided financial assistance to Shaw University of Raleigh, North
    Carolina, for renovation and restoration of Estey Hall.
      Section 1132h-3, Pub. L. 89-329, title VII, Sec. 774, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1540,
    provided for an electronic instructional network for gifted and
    talented students.
      Section 1132h-4, Pub. L. 89-329, title VII, Sec. 775, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1541,
    provided for financial assistance to Bethune-Cookman College in
    Volusia County, Florida, for establishment of Mary McLeod Bethune
    Memorial Fine Arts Center.
      Section 1132h-5, Pub. L. 89-329, title VII, Sec. 776, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1541,
    provided for financial assistance for University of Connecticut
    Behavioral Science Facility at Storrs, Connecticut.
      Section 1132h-6, Pub. L. 89-329, title VII, Sec. 777, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1541,
    provided for financial assistance for the establishment of a
    business administration program at University of Rhode Island in
    Kingston, Rhode Island.
      Prior sections 1132i to 1132i-2 were omitted in the general
    amendment of this subchapter by Pub. L. 105-244.
      Section 1132i, Pub. L. 89-329, title VII, Sec. 781, as added Pub.
    L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1542;
    amended Pub. L. 102-325, title VII, Sec. 708(b), July 23, 1992, 106
    Stat. 754; Pub. L. 103-208, Sec. 2(j)(21), Dec. 20, 1993, 107 Stat.
    2481, related to recovery of payments upon cessation of public
    benefit. See section 1011k of this title.
      Section 1132i-1, (Pub. L. 89-329, title VII, Sec. 782, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1542;
    amended Pub. L. 100-50, Sec. 19(6), June 3, 1987, 101 Stat. 360;
    Pub. L. 102-325, title VII, Sec. 708(c), July 23, 1992, 106 Stat.
    754; Pub. L. 103-208, Sec. 2(j)(22), Dec. 20, 1993, 107 Stat. 2481,
    defined terms used in this subchapter.
      Section 1132i-2, Pub. L. 89-329, title VII, Sec. 783, as added
    Pub. L. 99-498, title VII, Sec. 701, Oct. 17, 1986, 100 Stat. 1545;
    amended Pub. L. 100-203, title III, Sec. 3101, Dec. 22, 1987, 101
    Stat. 1330-39; Pub. L. 102-325, title VII, Sec. 708(d), July 23,
    1992, 106 Stat. 754; Pub. L. 103-208, Sec. 2(j)(23), Dec. 20, 1993,
    107 Stat. 2481, related to forgiveness of certain loans.
      A prior section 1132j, Pub. L. 89-329, title VII, Sec. 795, as
    added Pub. L. 100-418, title VI, Sec. 6211, Aug. 23, 1988, 102
    Stat. 1517, provided for a program of agricultural, strategic
    metals, minerals, forestry, and oceans college and university
    research facilities and instrumentation modernization, prior to
    repeal by Pub. L. 102-325, Sec. 2, title VII, Sec. 706, July 23,
    1992, 106 Stat. 458, 753, effective Oct. 1, 1992.

-End-



-CITE-
    20 USC Sec. 1133                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

-HEAD-
    Sec. 1133. Purpose

-STATUTE-
      It is the purpose of this subchapter - 
        (1) to authorize national graduate fellowship programs - 
          (A) in order to attract students of superior ability and
        achievement, exceptional promise, and demonstrated financial
        need, into high-quality graduate programs and provide the
        students with the financial support necessary to complete
        advanced degrees; and
          (B) that are designed to - 
            (i) sustain and enhance the capacity for graduate education
          in areas of national need; and
            (ii) encourage talented students to pursue scholarly
          careers in the humanities, social sciences, and the arts; and

        (2) to promote postsecondary programs.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 700, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1786.)


-MISC1-
                             PRIOR PROVISIONS                         
      Prior sections 1133 to 1133c, which comprised a prior subchapter
    VIII of this chapter, were repealed by Pub. L. 105-244, Sec. 3,
    title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803, effective
    Oct. 1, 1998.
      Section 1133, Pub. L. 89-329, title VIII, Sec. 801, as added Pub.
    L. 99-498, title VIII, Sec. 801, Oct. 17, 1986, 100 Stat. 1546;
    amended Pub. L. 102-325, title VIII, Sec. 801, July 23, 1992, 106
    Stat. 755, stated purpose of former subchapter VIII of this chapter
    and defined "cooperative education".
      Another prior section 1133, Pub. L. 89-329, title VIII, Sec. 801,
    as added Pub. L. 94-482, title I, Sec. 129(b), Oct. 12, 1976, 90
    Stat. 2144; amended Pub. L. 96-374, title VIII, Sec. 801(a), (b),
    title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1481, 1482,
    1503, authorized appropriations for fiscal years 1976 to 1985 for
    grants and contracts for cooperative education, prior to the
    general amendment of subchapter VIII of this chapter by Pub. L. 99-
    498.
      Another prior section 1133, Pub. L. 89-329, title VIII, Sec. 801,
    as added Pub. L. 90-575, title II, Sec. 251, Oct. 16, 1968, 82
    Stat. 1042; amended Pub. L. 92-318, title I, Sec. 172(a), June 23,
    1972, 86 Stat. 304, authorized projects and grants for sharing
    educational and related resources by institutions of higher
    education, prior to the general amendment of subchapter VIII of
    this chapter by Pub. L. 94-482.
      Section 1133a, Pub. L. 89-329, title VIII, Sec. 802, as added
    Pub. L. 99-498, title VIII, Sec. 801, Oct. 17, 1986, 100 Stat.
    1546; amended Pub. L. 102-325, title VIII, Sec. 801, July 23, 1992,
    106 Stat. 755; Pub. L. 103-208, Sec. 2(j)(24), Dec. 20, 1993, 107
    Stat. 2482, authorized appropriations for former subchapter VIII of
    this chapter.
      Another prior section 1133a, Pub. L. 89-329, title VIII, Sec.
    802, as added Pub. L. 94-482, title I, Sec. 129(b), Oct. 12, 1976,
    90 Stat. 2145; amended Pub. L. 96-374, title VIII, Sec. 801(c),
    (d), title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1482,
    1503, authorized grants for programs of cooperative education,
    prior to the general amendment of subchapter VIII of this chapter
    by Pub. L. 99-498.
      Another prior section 1133a, Pub. L. 89-329, title VIII, Sec.
    802, as added Pub. L. 90-575, title II, Sec. 251, Oct. 16, 1968, 82
    Stat. 1043; amended Pub. L. 92-318, title I, Sec. 171, June 23,
    1972, 86 Stat. 304, authorized appropriations for projects and
    grants for sharing educational and related resources, prior to the
    general amendment of subchapter VIII of this chapter by Pub. L. 94-
    482.
      Section 1133b, Pub. L. 89-329, title VIII, Sec. 803, as added
    Pub. L. 99-498, title VIII, Sec. 801, Oct. 17, 1986, 100 Stat.
    1548; amended Pub. L. 102-325, title VIII, Sec. 801, July 23, 1992,
    106 Stat. 756; Pub. L. 103-208, Sec. 2(j)(25), (26), Dec. 20, 1993,
    107 Stat. 2482, authorized grants for cooperative education.
      Another prior section 1133b, Pub. L. 89-329, title VIII, Sec.
    803, as added Pub. L. 94-482, title I, Sec. 129(b), Oct. 12, 1976,
    90 Stat. 2146; amended Pub. L. 96-374, title XIII, Sec. 1391(a)(1),
    Oct. 3, 1980, 94 Stat. 1503, authorized grants and contracts for
    training and research related to cooperative education, prior to
    the general amendment of subchapter VIII of this chapter by Pub. L.
    99-498.
      Another prior section 1133b, Pub. L. 89-329, title VIII, Sec.
    803, as added Pub. L. 90-575, title II, Sec. 251, Oct. 16, 1968, 82
    Stat. 1043, authorized free or reduced rates for sharing
    educational or related resources by institutions of higher
    education, prior to the general amendment of subchapter VIII of
    this chapter by Pub. L. 94-482.
      Section 1133c, Pub. L. 89-329, title VIII, Sec. 804, as added
    Pub. L. 102-325, title VIII, Sec. 801, July 23, 1992, 106 Stat.
    759, authorized grants and contracts for demonstration and
    innovation projects, training and resource centers, and research.

                    CONTINUATION OF CHAPTER 21 PROGRAMS                
      Pub. L. 92-318, title I, Sec. 161(b)(1), June 23, 1972, 86 Stat.
    303, provided that: "The programs authorized by title VII of the
    Higher Education Act of 1965 [this subchapter] shall be deemed to
    be a continuation of the comparable programs authorized by the
    Higher Education Facilities Act of 1963 [former section 701 et seq.
    of this title]."

-End-


-CITE-
    20 USC Part A - Graduate Education Programs                 01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs

-HEAD-
                   PART A - GRADUATE EDUCATION PROGRAMS               

-End-


-CITE-
    20 USC subpart 1 - jacob k. javits fellowship program       01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 1 - jacob k. javits fellowship program

-HEAD-
              SUBPART 1 - JACOB K. JAVITS FELLOWSHIP PROGRAM          

-End-



-CITE-
    20 USC Sec. 1134                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 1 - jacob k. javits fellowship program

-HEAD-
    Sec. 1134. Award of Jacob K. Javits fellowships

-STATUTE-
    (a) Authority and timing of awards
      The Secretary is authorized to award fellowships in accordance
    with the provisions of this subpart for graduate study in the arts,
    humanities, and social sciences by students of superior ability
    selected on the basis of demonstrated achievement, financial need,
    and exceptional promise. The fellowships shall be awarded to
    students who are eligible to receive any grant, loan, or work
    assistance pursuant to section 1091 of this title and intend to
    pursue a doctoral degree, except that fellowships may be granted to
    students pursuing a master's degree in those fields in which the
    master's degree is the terminal highest degree awarded in the area
    of study. All funds appropriated in a fiscal year shall be
    obligated and expended to the students for fellowships for use in
    the academic year beginning after July 1 of the fiscal year
    following the fiscal year for which the funds were appropriated.
    The fellowships shall be awarded for only 1 academic year of study
    and shall be renewable for a period not to exceed 4 years of study.
    (b) Designation of fellows
      Students receiving awards under this subpart shall be known as
    "Jacob K. Javits Fellows".
    (c) Interruptions of study
      The institution of higher education may allow a fellowship
    recipient to interrupt periods of study for a period not to exceed
    12 months for the purpose of work, travel, or independent study
    away from the campus, if such independent study is supportive of
    the fellowship recipient's academic program and shall continue
    payments for those 12-month periods during which the student is
    pursuing travel or independent study supportive of the recipient's
    academic program.
    (d) Process and timing of competition
      The Secretary shall make applications for fellowships under this
    part available not later than October 1 of the academic year
    preceding the academic year for which fellowships will be awarded,
    and shall announce the recipients of fellowships under this section
    not later than March 1 of the academic year preceding the academic
    year for which the fellowships are awarded.
    (e) Authority to contract
      The Secretary is authorized to enter into a contract with a
    nongovernmental agency to administer the program assisted under
    this part if the Secretary determines that entering into the
    contract is an efficient means of carrying out the program.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 701, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1786.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1134h of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1134, Pub. L. 89-329, title IX, Sec. 901, as
    added Pub. L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100
    Stat. 1549; amended Pub. L. 102-325, title IX, Sec. 901, July 23,
    1992, 106 Stat. 760; Pub. L. 103-208, Sec. 2(j)(27), Dec. 20, 1993,
    107 Stat. 2482, stated purpose of former subchapter IX of this
    chapter and contained administrative provisions, prior to repeal by
    Pub. L. 105-244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112
    Stat. 1585, 1803, effective Oct. 1, 1998.
      Another prior section 1134, Pub. L. 89-329, title IX, Sec. 901,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 304; amended Pub. L. 94-482, title I, Sec. 171(a)(1), (2),
    Oct. 12, 1976, 90 Stat. 2159; Pub. L. 96-49, Sec. 9(a), Aug. 13,
    1979, 93 Stat. 353; Pub. L. 96-374, title IX, Sec. 901(a), title
    XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1482, 1503, set forth
    Congressional declaration of purpose and authorized appropriations
    for grants to institutions of higher education, prior to the
    general amendment of subchapter IX of this chapter by Pub. L. 99-
    498.
      Another prior section 1134, Pub. L. 89-329, title IX, Sec. 901,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1043, set forth Congressional declaration of purpose
    respecting education for the public service, prior to repeal by
    Pub. L. 92-318.
      A prior section 701 of Pub. L. 89-329 was classified to section
    1132a of this title, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 701 of Pub. L. 89-329 was classified to
    section 1132a of this title, prior to the general amendment of this
    subchapter by Pub. L. 99-498.
      Another prior section 701 of Pub. L. 89-329 was classified to
    section 1132a of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1134a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 1 - jacob k. javits fellowship program

-HEAD-
    Sec. 1134a. Allocation of fellowships

-STATUTE-
    (a) Fellowship Board
      (1) Appointment
        The Secretary shall appoint a Jacob K. Javits Fellows Program
      Fellowship Board (hereinafter in this subpart referred to as the
      "Board") consisting of 9 individuals representative of both
      public and private institutions of higher education who are
      especially qualified to serve on the Board. In making
      appointments, the Secretary shall give due consideration to the
      appointment of individuals who are highly respected in the
      academic community. The Secretary shall assure that individuals
      appointed to the Board are broadly representative of a range of
      disciplines in graduate education in arts, humanities, and social
      sciences.
      (2) Duties
        The Board shall - 
          (A) establish general policies for the program established by
        this subpart and oversee the program's operation;
          (B) establish general criteria for the award of fellowships
        in academic fields identified by the Board, or, in the event
        that the Secretary enters into a contract with a
        nongovernmental entity to administer the program assisted under
        this subpart, by such nongovernmental entity;
          (C) appoint panels of academic scholars with distinguished
        backgrounds in the arts, humanities, and social sciences for
        the purpose of selecting fellows, except that, in the event
        that the Secretary enters into a contract with a
        nongovernmental entity to administer the program, such panels
        may be appointed by such nongovernmental entity; and
          (D) prepare and submit to the Congress at least once in every
        3-year period a report on any modifications in the program that
        the Board determines are appropriate.
      (3) Consultations
        In carrying out its responsibilities, the Board shall consult
      on a regular basis with representatives of the National Science
      Foundation, the National Endowment for the Humanities, the
      National Endowment for the Arts, and representatives of
      institutions of higher education and associations of such
      institutions, learned societies, and professional organizations.
      (4) Term
        The term of office of each member of the Board shall be 4
      years, except that any member appointed to fill a vacancy shall
      serve for the remainder of the term for which the predecessor of
      the member was appointed. No member may serve for a period in
      excess of 6 years.
      (5) Initial meeting; vacancy
        The Secretary shall call the first meeting of the Board, at
      which the first order of business shall be the election of a
      Chairperson and a Vice Chairperson, who shall serve until 1 year
      after the date of the appointment of the Chairperson and Vice
      Chairperson. Thereafter each officer shall be elected for a term
      of 2 years. In case a vacancy occurs in either office, the Board
      shall elect an individual from among the members of the Board to
      fill such vacancy.
      (6) Quorum; additional meetings
        (A) A majority of the members of the Board shall constitute a
      quorum.
        (B) The Board shall meet at least once a year or more
      frequently, as may be necessary, to carry out the Board's
      responsibilities.
      (7) Compensation
        Members of the Board, while serving on the business of the
      Board, shall be entitled to receive compensation at rates fixed
      by the Secretary, but not exceeding the rate of basic pay payable
      for level IV of the Executive Schedule, including travel time,
      and while so serving away from their homes or regular places of
      business, the members may be allowed travel expenses, including
      per diem in lieu of subsistence, as authorized by section 5703 of
      title 5 for persons in Government service employed
      intermittently.
    (b) Use of selection panels
      The recipients of fellowships shall be selected in each
    designated field from among all applicants nationwide in each field
    by distinguished panels appointed by the Board to make such
    selections under criteria established by the Board, except that, in
    the event that the Secretary enters into a contract with a
    nongovernmental entity to administer the program, such panels may
    be appointed by such nongovernmental entity. The number of
    recipients in each field in each year shall not exceed the number
    of fellows allocated to that field for that year by the Board.
    (c) Fellowship portability
      Each recipient shall be entitled to use the fellowship in a
    graduate program at any accredited institution of higher education
    in which the recipient may decide to enroll.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 702, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1787.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Level IV of the Executive Schedule, referred to in subsec.
    (a)(7), is set out in section 5315 of Title 5, Government
    Organization and Employees.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1134i of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1134a, Pub. L. 89-329, title IX, Sec. 911, as
    added Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat.
    761, authorized grants to encourage women and minority
    participation in graduate education, prior to repeal by Pub. L. 105-
    244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585,
    1803, effective Oct. 1, 1998.
      Another prior section 1134a, Pub. L. 89-329, title IX, Sec. 902,
    as added Pub. L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100
    Stat. 1550, related to submission and contents of applications,
    prior to the general amendment of part A of subchapter IX of this
    chapter by Pub. L. 102-325.
      Another prior section 1134a, Pub. L. 89-329, title IX, Sec. 902,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 305; amended Pub. L. 94-482, title I, Sec. 171(a)(3), Oct.
    12, 1976, 90 Stat. 2159; Pub. L. 96-374, title XIII, Sec.
    1391(a)(1), Oct. 3, 1980, 94 Stat. 1503, related to applications
    for grants to institutions of higher education, prior to the
    general amendment of subchapter IX of this chapter by Pub. L. 99-
    498.
      Another prior section 1134a, Pub. L. 89-329, title IX, Sec. 903,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1043, related to project grants and contracts to strengthen
    and improve education for the public service, prior to repeal by
    Pub. L. 92-318.
      A prior section 702 of Pub. L. 89-329 was classified to section
    1132a-1 of this title, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 702 of Pub. L. 89-329 was classified to
    section 1132a-1 of this title, prior to the general amendment of
    this subchapter by Pub. L. 99-498.
      Another prior section 702 of Pub. L. 89-329 was classified to
    section 1132a-1 of this title, prior to the general amendment of
    this subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1134b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 1 - jacob k. javits fellowship program

-HEAD-
    Sec. 1134b. Stipends

-STATUTE-
    (a) Award by Secretary
      The Secretary shall pay to individuals awarded fellowships under
    this subpart such stipends as the Secretary may establish,
    reflecting the purpose of this program to encourage highly talented
    students to undertake graduate study as described in this subpart.
    In the case of an individual who receives such individual's first
    stipend under this subpart in academic year 1999-2000 or any
    succeeding academic year, such stipend shall be set at a level of
    support equal to that provided by the National Science Foundation
    graduate fellowships, except such amount shall be adjusted as
    necessary so as not to exceed the fellow's demonstrated level of
    need determined in accordance with part E of subchapter IV of this
    chapter.
    (b) Institutional payments
      (1) In general
        (A) The Secretary shall (in addition to stipends paid to
      individuals under this subpart) pay to the institution of higher
      education, for each individual awarded a fellowship under this
      subpart at such institution, an institutional allowance. Except
      as provided in subparagraph (B), such allowance shall be, for
      1999-2000 and succeeding academic years, the same amount as the
      institutional payment made for 1998-1999 under section 1134j(b)
      of this title (as such section was in effect on the day before
      October 7, 1998) adjusted for 1999-2000 and annually thereafter
      in accordance with inflation as determined by the Department of
      Labor's Consumer Price Index for the previous calendar year.
        (B) The institutional allowance paid under subparagraph (A)
      shall be reduced by the amount the institution charges and
      collects from a fellowship recipient for tuition and other
      expenses as part of the recipient's instructional program.
      (2) Special rules
        (A) Beginning March 1, 1992, any applicant for a fellowship
      under this subpart who has been notified in writing by the
      Secretary that such applicant has been selected to receive such a
      fellowship and is subsequently notified that the fellowship award
      has been withdrawn, shall receive such fellowship unless the
      Secretary subsequently makes a determination that such applicant
      submitted fraudulent information on the application.
        (B) Subject to the availability of appropriations, amounts
      payable to an institution by the Secretary pursuant to this
      subsection shall not be reduced for any purpose other than the
      purposes specified under paragraph (1).

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 703, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1789.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1134j of this title, referred to in subsec. (b)(1), was
    repealed by Pub. L. 105-244, Sec. 3, title VII, Sec. 702, Oct. 7,
    1998, 112 Stat. 1585, 1803, effective Oct. 1, 1998.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1134j of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1134b, Pub. L. 89-329, title IX, Sec. 912, as
    added Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat.
    761, related to submission and contents of application for
    assistance, prior to repeal by Pub. L. 105-244, Sec. 3, title VII,
    Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803, effective Oct. 1,
    1998.
      Another prior section 1134b, Pub. L. 89-329, title IX, Sec. 903,
    as added Pub. L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100
    Stat. 1550, related to use of award funds, prior to the general
    amendment of part A of subchapter IX of this chapter by Pub. L. 102-
    325.
      Another prior section 1134b, Pub. L. 89-329, title IX, Sec. 903,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 305; amended Pub. L. 94-482, title I, Sec. 171(a)(4), Oct.
    12, 1976, 90 Stat. 2160; Pub. L. 96-374, title IX, Sec. 901(b),
    title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1482, 1503,
    related to the uses of funds appropriated to make grants to
    institutions of higher education, prior to the general amendment of
    subchapter IX of this chapter by Pub. L. 99-498.
      Another prior section 1134b, Pub. L. 89-329, title IX, Sec. 904,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1044, related to application for grants or contracts to
    strengthen and improve education for the public service, providing
    in subsec. (a) for requisites of application, subsec. (b) for
    allocation of grants and contracts, and subsec. (c) for payment of
    compensation of students employed in public service and
    participation of Federal agencies and departments, prior to repeal
    by Pub. L. 92-318.
      A prior section 703 of Pub. L. 89-329 was classified to section
    1132a-2 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1134c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 1 - jacob k. javits fellowship program

-HEAD-
    Sec. 1134c. Fellowship conditions

-STATUTE-
    (a) Requirements for receipt
      An individual awarded a fellowship under the provisions of this
    subpart shall continue to receive payments provided in section
    1134b of this title only during such periods as the Secretary finds
    that such individual is maintaining satisfactory proficiency in,
    and devoting essentially full time to, study or research in the
    field in which such fellowship was awarded, in an institution of
    higher education, and is not engaging in gainful employment other
    than part-time employment by such institution in teaching,
    research, or similar activities, approved by the Secretary.
    (b) Reports from recipients
      The Secretary is authorized to require reports containing such
    information in such form and filed at such times as the Secretary
    determines necessary from any person awarded a fellowship under the
    provisions of this subpart. The reports shall be accompanied by a
    certificate from an appropriate official at the institution of
    higher education, library, archive, or other research center
    approved by the Secretary, stating that such individual is making
    satisfactory progress in, and is devoting essentially full time to
    the program for which the fellowship was awarded.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 704, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1789.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1134k of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1134c, Pub. L. 89-329, title IX, Sec. 913, as
    added Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat.
    762, related to use of funds by grant recipients, prior to repeal
    by Pub. L. 105-244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112
    Stat. 1585, 1803, effective Oct. 1, 1998.
      Another prior section 1134c, Pub. L. 89-329, title IX, Sec. 904,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 306; amended Pub. L. 96-374, title XIII, Sec. 1391(a)(1),
    Oct. 3, 1980, 94 Stat. 1503, authorized studies and research
    activities on the need for, and improvement of, graduate programs,
    prior to the general amendment of subchapter IX of this chapter by
    Pub. L. 99-498.
      Another prior section 1134c, Pub. L. 89-329, title IX, Sec. 911,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1044, provided for authorization to award public service
    fellowships, prior to repeal by Pub. L. 92-318.
      A prior section 704 of Pub. L. 89-329 was classified to section
    1132a-3 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      Prior sections 1134c-1 and 1134c-2 were repealed by Pub. L. 105-
    244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585,
    1803, effective Oct. 1, 1998.
      Section 1134c-1, Pub. L. 89-329, title IX, Sec. 914, as added
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 762,
    related to information collection.
      Section 1134c-2, Pub. L. 89-329, title IX, Sec. 915, as added
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 762,
    authorized appropriations for part A of former subchapter IX of
    this chapter.

-End-



-CITE-
    20 USC Sec. 1134d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 1 - jacob k. javits fellowship program

-HEAD-
    Sec. 1134d. Authorization of appropriations

-STATUTE-
      There are authorized to be appropriated $30,000,000 for fiscal
    year 1999 and such sums as may be necessary for each of the 4
    succeeding fiscal years to carry out this subpart.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 705, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1790.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1134k-1 of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1134d, Pub. L. 89-329, title IX, Sec. 921, as
    added Pub. L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100
    Stat. 1550; amended Pub. L. 102-325, title IX, Sec. 901, July 23,
    1992, 106 Stat. 762, stated purpose of the Patricia Roberts Harris
    Fellowship program and provided that a recipient of an award under
    that program be known as a "Patricia Roberts Harris Graduate
    Fellow", prior to repeal by Pub. L. 105-244, Sec. 3, title VII,
    Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803, effective Oct. 1,
    1998.
      Another prior section 1134d, Pub. L. 89-329, title IX, Sec. 921,
    as added Pub. L. 96-374, title IX, Sec. 902(a), Oct. 3, 1980, 94
    Stat. 1482, set forth Congressional statement of purpose, prior to
    the general amendment of subchapter IX of this chapter by Pub. L.
    99-498.
      Another prior section 1134d, Pub. L. 89-329, title IX, Sec. 921,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 306; amended Pub. L. 94-482, title I, Sec. 171(b), Oct. 12,
    1976, 90 Stat. 2160, authorized appropriations for carrying out the
    program of fellowships for graduate and professional study, prior
    to the general amendment of part B of subchapter IX of this chapter
    by Pub. L. 96-374.
      Another prior section 1134d, Pub. L. 89-329, title IX, Sec. 912,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1045, provided for allocation of public service fellowships,
    prior to repeal by Pub. L. 92-318, title I, Sec. 181(a), June 23,
    1972, 86 Stat. 304.
      A prior section 705 of Pub. L. 89-329 was classified to section
    1132a-4 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      Prior sections 1134e to 1134w were repealed by Pub. L. 105-244,
    Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803,
    effective Oct. 1, 1998.
      Section 1134e, Pub. L. 89-329, title IX, Sec. 922, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1550;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 763; Pub. L. 103-208, Sec. 2(j)(28), Dec. 20, 1993, 107 Stat.
    2482, authorized Patricia Roberts Harris Fellowship program.
      Another prior section 1134e, Pub. L. 89-329, title IX, Sec. 922,
    as added Pub. L. 96-374, title IX, Sec. 902(a), Oct. 3, 1980, 94
    Stat. 1482, authorized program of grants to assist graduate and
    professional study, prior to the general amendment of subchapter IX
    of this chapter by Pub. L. 99-498.
      Another prior section 1134e, Pub. L. 89-329, title IX, Sec. 922,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 306; amended Pub. L. 94-482, title I, Sec. 171(b), Oct. 12,
    1976, 90 Stat. 2160; Pub. L. 96-49, Sec. 9(b), Aug. 13, 1979, 93
    Stat. 353, related to the authorization, duration, and extension of
    the period of fellowships, the awarding of vacated fellowships, and
    the question of the interruption of studies of fellowship
    recipients, prior to the general amendment of part B of subchapter
    IX of this chapter by Pub. L. 96-374.
      Another prior section 1134e, Pub. L. 89-329, title IX, Sec. 913,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1045, provided for approval of programs, prior to repeal by
    Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86 Stat. 304.
      Section 1134f, Pub. L. 89-329, title IX, Sec. 923, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1552;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 764; Pub. L. 103-208, Sec. 2(j)(29)-(31), Dec. 20, 1993, 107
    Stat. 2482, 2483, related to award of fellowships.
      Another prior section 1134f, Pub. L. 89-329, title IX, Sec. 923,
    as added Pub. L. 96-374, title IX, Sec. 902(a), Oct. 3, 1980, 94
    Stat. 1484, related to award of fellowships to graduate and
    professional students, prior to the general amendment of subchapter
    IX of this chapter by Pub. L. 99-498.
      Another prior section 1134f, Pub. L. 89-329, title IX, Sec. 923,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 306; amended Pub. L. 94-482, title I, Sec. 171(b), Oct. 12,
    1976, 90 Stat. 2160, related to the award of fellowships and the
    approval of graduate programs, prior to the general amendment of
    part B of subchapter IX of this chapter by Pub. L. 96-374.
      Another prior section 1134f, Pub. L. 89-329, title IX, Sec. 914,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1045, provided for stipends for public service fellowships,
    prior to repeal by Pub. L. 92-318, title I, Sec. 181(a), June 23,
    1972, 86 Stat. 304.
      Section 1134g, Pub. L. 89-329, title IX, Sec. 924, as added Pub.
    L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 765;
    amended Pub. L. 103-208, Sec. 2(j)(32), Dec. 20, 1993, 107 Stat.
    2483, authorized appropriations for Patricia Roberts Harris
    Fellowship program.
      Another prior section 1134g, Pub. L. 89-329, title IX, Sec. 924,
    as added Pub. L. 96-374, title IX, Sec. 902(a), Oct. 3, 1980, 94
    Stat. 1484, authorized appropriations for fiscal years 1981 to 1985
    for grant program to assist graduate and professional students,
    prior to the general amendment of subchapter IX of this chapter by
    Pub. L. 99-498.
      Another prior section 1134g, Pub. L. 89-329, title IX, Sec. 924,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 307; amended Pub. L. 94-482, title I, Sec. 171(b), Oct. 12,
    1976, 90 Stat. 2161, related to fellowship stipends, additional
    allowances to institutions of higher education, and deductions,
    prior to the general amendment of part B of subchapter IX of this
    chapter by Pub. L. 96-374.
      Another prior section 1134g, Pub. L. 89-329, title IX, Sec. 915,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1045, provided for public service fellowship conditions,
    prior to repeal by Pub. L. 92-318, title I, Sec. 181(a), June 23,
    1972, 86 Stat. 304.
      Section 1134h, Pub. L. 89-329, title IX, Sec. 931, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1552;
    amended Pub. L. 100-50, Sec. 20(1), June 3, 1987, 101 Stat. 360;
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 765;
    Pub. L. 103-208, Sec. 2(j)(33), Dec. 20, 1993, 107 Stat. 2483,
    authorized award of Jacob K. Javits fellowships and provided that
    award recipients be known as "Jacob K. Javits Fellows". See section
    1134 of this title.
      Another prior section 1134h, Pub. L. 89-329, title IX, Sec. 931,
    as added Pub. L. 96-374, title IX, Sec. 903, Oct. 3, 1980, 94 Stat.
    1484; amended Pub. L. 99-159, title VIII, Sec. 802, Nov. 22, 1985,
    99 Stat. 908, authorized award of fellowships for graduate study in
    arts, humanities, and social sciences, prior to the general
    amendment of subchapter IX of this chapter by Pub. L. 99-498.
      Another prior section 1134h, Pub. L. 89-329, title IX, Sec. 925,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 307; amended Pub. L. 94-482, title I, Sec. 171(b), Oct. 12,
    1976, 90 Stat. 2162, set out conditions attached to fellowships for
    graduate and professional study, prior to the general amendment of
    part B of subchapter IX of this chapter by Pub. L. 96-374.
      Another prior section 1134h, Pub. L. 89-329, title IX, Sec. 921,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1046, defined "State", "institution of higher education",
    "public service" and "academic year", prior to repeal by Pub. L. 92-
    318, title I, Sec. 181(a), June 23, 1972, 86 Stat. 304.
      Section 1134i, Pub. L. 89-329, title IX, Sec. 932, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1553;
    amended Pub. L. 100-50, Sec. 20(2), (3), June 3, 1987, 101 Stat.
    360; Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat.
    766; Pub. L. 103-208, Sec. 2(j)(34), (35), Dec. 20, 1993, 107 Stat.
    2483, related to Jacob K. Javits Fellows Program Fellowship Board
    and to allocation of fellowships. See section 1134a of this title.
      Another prior section 1134i, Pub. L. 89-329, title IX, Sec. 932,
    as added Pub. L. 96-374, title IX, Sec. 903, Oct. 3, 1980, 94 Stat.
    1485, related to allocation of fellowships for graduate study in
    arts, humanities, and social sciences, prior to the general
    amendment of subchapter IX of this chapter by Pub. L. 99-498.
      Another prior section 1134i, Pub. L. 89-329, title IX, Sec. 941,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 308; amended Pub. L. 94-482, title I, Sec. 171(c)(1), Oct.
    12, 1976, 90 Stat. 2162; Pub. L. 96-49, Sec. 9(c), Aug. 13, 1979,
    93 Stat. 353, related to award of public service fellowships, prior
    to repeal by section 902(b) of Pub. L. 96-374.
      Another prior section 1134i, Pub. L. 89-329, title IX, Sec. 922,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1046, related to coordination of Federal assistance
    respecting education for the public service, prior to repeal by
    Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86 Stat. 304.
      Section 1134j, Pub. L. 89-329, title IX, Sec. 933, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1554;
    amended Pub. L. 100-50, Sec. 20(4), June 3, 1987, 101 Stat. 360;
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 767;
    Pub. L. 103-208, Sec. 2(j)(36), Dec. 20, 1993, 107 Stat. 2483,
    related to payment of stipends to award recipients. See section
    1134b of this title.
      Another prior section 1134j, Pub. L. 89-329, title IX, Sec. 933,
    as added Pub. L. 96-374, title IX, Sec. 903, Oct. 3, 1980, 94 Stat.
    1486, related to stipends paid to individuals awarded fellowships
    for graduate study in arts, humanities, and social sciences, prior
    to the general amendment of subchapter IX of this chapter by Pub.
    L. 99-498.
      Another prior section 1134j, Pub. L. 89-329, title IX, Sec. 942,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 308; amended Pub. L. 94-482, title I, Sec. 171(c)(2), Oct.
    12, 1976, 90 Stat. 2163, related to the allocation of public
    service fellowships, prior to repeal by section 902(b) of Pub. L.
    96-374.
      Another prior section 1134j, Pub. L. 89-329, title IX, Sec. 923,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1046; amended Pub. L. 92-318, title I, Sec. 131(d)(2)(E),
    June 23, 1972, 86 Stat. 260, prohibited any grant, contract, or
    fellowship for study at schools or departments of divinity, prior
    to repeal by Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972,
    86 Stat. 304.
      Section 1134k, Pub. L. 89-329, title IX, Sec. 934, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1554;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 767, related to fellowship conditions. See section 1134c of
    this title.
      Another prior section 1134k, Pub. L. 89-329, title IX, Sec. 934,
    as added Pub. L. 96-374, title IX, Sec. 903, Oct. 3, 1980, 94 Stat.
    1486, related to conditions on continuance of fellowships for
    graduate study in arts, humanities, and social sciences, prior to
    the general amendment of subchapter IX of this chapter by Pub. L.
    99-498.
      Another prior section 1134k, Pub. L. 89-329, title IX, Sec. 943,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 308; amended Pub. L. 94-482, title I, Sec. 171(c)(3), Oct.
    12, 1976, 90 Stat. 2163, related to requisite approval of programs
    of graduate or professional study, prior to repeal by section
    902(b) of Pub. L. 96-374.
      Another prior section 1134k, Pub. L. 89-329, title IX, Sec. 924,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1046, provided for annual report of the Secretary to Congress
    of activities relating to education for public service, prior to
    repeal by Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 304.
      Section 1134k-1, Pub. L. 89-329, title IX, Sec. 935, as added
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 768,
    authorized appropriations for Jacob K. Javits Fellowship program.
    See section 1134d of this title.
      Section 1134l, Pub. L. 89-329, title IX, Sec. 941, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1555;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 768; Pub. L. 103-208, Sec. 2(j)(37), Dec. 20, 1993, 107 Stat.
    2484, stated purpose of graduate assistance in areas of national
    need grant program.
      Another prior section 1134l, Pub. L. 89-329, title IX, Sec. 941,
    as added Pub. L. 96-374, title IX, Sec. 904, Oct. 3, 1980, 94 Stat.
    1486, authorized assistance for training in legal profession, prior
    to the general amendment of subchapter IX of this chapter by Pub.
    L. 99-498.
      Another prior section 1134l, Pub. L. 89-329, title IX, Sec. 944,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 309; amended Pub. L. 94-482, title I, Sec. 171(c)(4), Oct.
    12, 1976, 90 Stat. 2163, related to payments to persons awarded
    public service fellowships, prior to repeal by section 902(b) of
    Pub. L. 96-374.
      Another prior section 1134l, Pub. L. 89-329, title IX, Sec. 925,
    as added Pub. L. 90-575, title II, Sec. 261, Oct. 16, 1968, 82
    Stat. 1046, authorized appropriations for education for the public
    service, prior to repeal by Pub. L. 92-318, title I, Sec. 181(a),
    June 23, 1972, 86 Stat. 304.
      Section 1134m, Pub. L. 89-329, title IX, Sec. 942, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1555;
    amended Pub. L. 100-369, Sec. 7(c), July 18, 1988, 102 Stat. 837;
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 768,
    authorized grants to academic departments and programs to provide
    assistance to graduate students. See section 1135 of this title.
      Another prior section 1134m, Pub. L. 89-329, title IX, Sec. 942,
    as added Pub. L. 96-374, title IX, Sec. 904, Oct. 3, 1980, 94 Stat.
    1487, authorized appropriations for fiscal years 1981 to 1985 for
    program of assistance for training in legal profession, prior to
    the general amendment of subchapter IX of this chapter by Pub. L.
    99-498.
      Another prior section 1134m, Pub. L. 89-329, title IX, Sec. 945,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 309, related to conditions attached to public service
    fellowships, prior to repeal by section 902(b) of Pub. L. 96-374.
      Section 1134n, Pub. L. 89-329, title IX, Sec. 943, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1556;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 769; Pub. L. 103-208, Sec. 2(j)(38), Dec. 20, 1993, 107 Stat.
    2484, related to institutional eligibility for grants. See section
    1135a of this title.
      Another prior section 1134n, Pub. L. 89-329, title IX, Sec. 951,
    as added Pub. L. 96-374, title IX, Sec. 905, Oct. 3, 1980, 94 Stat.
    1487, authorized assistance for law school clinical experience
    programs, prior to the general amendment of subchapter IX of this
    chapter by Pub. L. 99-498.
      Another prior section 1134n, Pub. L. 89-329, title IX, Sec. 961,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 309; amended Pub. L. 94-482, title I, Sec. 171(d)(1)-(3),
    Oct. 12, 1976, 90 Stat. 2163; Pub. L. 96-49, Sec. 9(d), Aug. 13,
    1979, 93 Stat. 353, provided for a program of fellowships for other
    purposes, prior to repeal by section 902(b) of Pub. L. 96-374.
      Section 1134o, Pub. L. 89-329, title IX, Sec. 944, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1556;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 770, related to criteria for applications for grants. See
    section 1135b of this title.
      Another prior section 1134o, Pub. L. 89-329, title IX, Sec. 952,
    as added Pub. L. 96-374, title IX, Sec. 905, Oct. 3, 1980, 94 Stat.
    1488, related to applications for assistance for law school
    clinical experience programs, prior to the general amendment of
    subchapter IX of this chapter by Pub. L. 99-498.
      Another prior section 1134o, Pub. L. 89-329, title IX, Sec. 962,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 310, related to the award of fellowships for other purposes,
    prior to repeal by section 902(b) of Pub. L. 96-374.
      Section 1134p, Pub. L. 89-329, title IX, Sec. 945, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1557;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 770; Pub. L. 103-208, Sec. 2(j)(39), Dec. 20, 1993, 107 Stat.
    2484, related to awards to graduate students. See section 1135c of
    this title.
      Another prior section 1134p, Pub. L. 89-329, title IX, Sec. 953,
    as added Pub. L. 96-374, title IX, Sec. 905, Oct. 3, 1980, 94 Stat.
    1488, authorized appropriations for fiscal years 1981 to 1985 for
    providing assistance for law school clinical experience programs,
    prior to the general amendment of subchapter IX of this chapter by
    Pub. L. 99-498.
      Another prior section 1134p, Pub. L. 89-329, title IX, Sec. 963,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 310; amended Pub. L. 94-482, title I, Sec. 171(d)(4), Oct.
    12, 1976, 90 Stat. 2163, related to the amount of payments to
    persons awarded fellowships for other purposes, prior to repeal by
    section 902(b) of Pub. L. 96-374.
      Section 1134q, Pub. L. 89-329, title IX, Sec. 946, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1558;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 771; Pub. L. 103-208, Sec. 2(j)(40), Dec. 20, 1993, 107 Stat.
    2484, related to additional assistance for cost of education. See
    section 1135d of this title.
      Another prior section 1134q, Pub. L. 89-329, title IX, Sec. 964,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 311, related to fellowship conditions in program of
    fellowships other than public service fellowships or fellowships
    for graduate and professional study, prior to repeal by Pub. L. 96-
    374, title IX, Sec. 902(b), Oct. 3, 1980, 94 Stat. 1484, eff. Oct.
    1, 1980.
      Section 1134q-1, Pub. L. 89-329, title IX, Sec. 947, as added
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 771,
    authorized appropriations for graduate assistance in areas of
    national need grant program.
      Section 1134r, Pub. L. 89-329, title IX, Sec. 951, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1558;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 772; Pub. L. 103-208, Sec. 2(j)(41), Dec. 20, 1993, 107 Stat.
    2484, authorized grants for faculty development fellowship awards
    and provided that fellowship recipients be known as "Faculty
    Development Fellows".
      Another prior section 1134r, Pub. L. 89-329, title IX, Sec. 965,
    as added Pub. L. 92-318, title I, Sec. 181(a), June 23, 1972, 86
    Stat. 311, authorized appropriations for program of fellowships
    other than public service fellowships or fellowships for graduate
    and professional study, prior to repeal by Pub. L. 96-374, title
    IX, Sec. 902(b), Oct. 3, 1980, 94 Stat. 1484, eff. Oct. 1, 1980.
      Section 1134r-1, Pub. L. 89-329, title IX, Sec. 952, as added
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 773,
    related to amount of fellowships.
      Another prior section 1134r-1, Pub. L. 89-329, title IX, Sec.
    966, as added Pub. L. 93-380, title VIII, Sec. 836(a), Aug. 21,
    1974, 88 Stat. 605; amended Pub. L. 94-482, title I, Sec.
    171(d)(5), Oct. 12, 1976, 90 Stat. 2164; Pub. L. 96-49, Sec. 9(e),
    Aug. 13, 1979, 93 Stat. 353, related to a program of assistance for
    training in legal profession, prior to repeal by Pub. L. 96-374,
    title IX, Sec. 902(b), Oct. 3, 1980, 94 Stat. 1484, eff. Oct. 1,
    1980.
      Section 1134r-2, Pub. L. 89-329, title IX, Sec. 953, as added
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 773,
    related to applications required for grants.
      Another prior section 1134r-2, Pub. L. 89-329, title IX, Sec.
    971, as added Pub. L. 94-482, title I, Sec. 171(e), Oct. 12, 1976,
    90 Stat. 2164, related to an annual report on graduate and
    assistance program, prior to repeal by Pub. L. 96-374, title IX,
    Sec. 902(b), Oct. 3, 1980, 94 Stat. 1484, eff. Oct. 1, 1980, and
    also by Pub. L. 96-470, title I, Sec. 106(b), Oct. 19, 1980, 94
    Stat. 2238.
      Section 1134r-3, Pub. L. 89-329, title IX, Sec. 954, as added
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 774,
    related to fellowship agreements.
      Section 1134r-4, Pub. L. 89-329, title IX, Sec. 955, as added
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 774,
    related to fellowship repayment provisions.
      Section 1134r-5, Pub. L. 89-329, title IX, Sec. 956, as added
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 774,
    related to exceptions to repayment provisions.
      Section 1134r-6, Pub. L. 89-329, title IX, Sec. 957, as added
    Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 775,
    authorized appropriations for faculty development fellowship
    program.
      Section 1134s, Pub. L. 89-329, title IX, Sec. 961, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1558;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 775, authorized program for assistance for training in legal
    profession.
      Another prior section 1134s, Pub. L. 89-329, title IX, Sec. 981,
    as added Pub. L. 92-318, title X, Sec. 1001(b), June 23, 1972, 86
    Stat. 380, related to a program of general assistance to graduate
    schools, prior to repeal by Pub. L. 96-374, title IX, Sec. 902(b),
    Oct. 3, 1980, 94 Stat. 1484, eff. Oct. 1, 1980. Subsequent to
    repeal, subsec. (f) of that section was repealed by Pub. L. 96-470,
    title I, Sec. 106(c), Oct. 19, 1980, 94 Stat. 2238.
      Section 1134t, Pub. L. 89-329, title IX, Sec. 962, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1559;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 776, authorized appropriations for program for assistance for
    training in legal profession.
      Section 1134u, Pub. L. 89-329, title IX, Sec. 971, as added Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1560;
    amended Pub. L. 102-325, title IX, Sec. 901, July 23, 1992, 106
    Stat. 776, authorized grants and contracts for programs to provide
    law school clinical experience programs.
      Section 1134v, Pub. L. 89-329, title IX, Sec. 972, as added Pub.
    L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 777,
    related to applications for grants or contracts.
      Section 1134w, Pub. L. 89-329, title IX, Sec. 973, as added Pub.
    L. 102-325, title IX, Sec. 901, July 23, 1992, 106 Stat. 777,
    authorized appropriations for law school clinical experience
    programs.

-End-


-CITE-
    20 USC subpart 2 - graduate assistance in areas of
           national need                                   01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 2 - graduate assistance in areas of national need

-HEAD-
         SUBPART 2 - GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED     

-End-



-CITE-
    20 USC Sec. 1135                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 2 - graduate assistance in areas of national need

-HEAD-
    Sec. 1135. Grants to academic departments and programs of
      institutions

-STATUTE-
    (a) Grant authority
      (1) In general
        The Secretary shall make grants to academic departments,
      programs and other academic units of institutions of higher
      education that provide courses of study leading to a graduate
      degree in order to enable such institutions to provide assistance
      to graduate students in accordance with this subpart.
      (2) Additional grants
        The Secretary may also make grants to such departments,
      programs and other academic units of institutions of higher
      education granting graduate degrees which submit joint proposals
      involving nondegree granting institutions which have formal
      arrangements for the support of doctoral dissertation research
      with degree-granting institutions. Nondegree granting
      institutions eligible for awards as part of such joint proposals
      include any organization which - 
          (A) is described in section 501(c)(3) of title 26, and is
        exempt from tax under section 501(a) of such title;
          (B) is organized and operated substantially to conduct
        scientific and cultural research and graduate training
        programs;
          (C) is not a private foundation;
          (D) has academic personnel for instruction and counseling who
        meet the standards of the institution of higher education in
        which the students are enrolled; and
          (E) has necessary research resources not otherwise readily
        available in such institutions to such students.
    (b) Award and duration of grants
      (1) Awards
        The principal criterion for the award of grants shall be the
      relative quality of the graduate programs presented in competing
      applications. Consistent with an allocation of awards based on
      quality of competing applications, the Secretary shall, in
      awarding such grants, promote an equitable geographic
      distribution among eligible public and private institutions of
      higher education.
      (2) Duration and amount
        (A) Duration
          The Secretary shall award a grant under this subpart for a
        period of 3 years.
        (B) Amount
          The Secretary shall award a grant to an academic department,
        program or unit of an institution of higher education under
        this subpart for a fiscal year in an amount that is not less
        than $100,000 and not greater than $750,000.
      (3) Reallotment
        Whenever the Secretary determines that an academic department,
      program or unit of an institution of higher education is unable
      to use all of the amounts available to the department, program or
      unit under this subpart, the Secretary shall, on such dates
      during each fiscal year as the Secretary may fix, reallot the
      amounts not needed to academic departments, programs and units of
      institutions which can use the grants authorized by this subpart.
    (c) Preference to continuing grant recipients
      (1) In general
        The Secretary shall make new grant awards under this subpart
      only to the extent that each previous grant recipient under this
      subpart has received continued funding in accordance with
      subsection (b)(2)(A) of this section.
      (2) Ratable reduction
        To the extent that appropriations under this subpart are
      insufficient to comply with paragraph (1), available funds shall
      be distributed by ratably reducing the amounts required to be
      awarded under subsection (b)(2)(A) of this section.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 711, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1790.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1134m of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1135, Pub. L. 89-329, title X, Sec. 1001, as
    added Pub. L. 96-374, title X, Sec. 1001(a), Oct. 3, 1980, 94 Stat.
    1489; amended Pub. L. 102-325, title X, Sec. 1001, July 23, 1992,
    106 Stat. 778, related to Fund for the Improvement of Postsecondary
    Education, prior to repeal by Pub. L. 105-244, Sec. 3, title VII,
    Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803, effective Oct. 1,
    1998. See section 1138 of this title.
      Another prior section 1135, Pub. L. 89-329, title X, Sec. 1001,
    as added Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86
    Stat. 312; amended Pub. L. 93-380, title VIII, Sec. 837, Aug. 21,
    1974, 88 Stat. 606; Pub. L. 94-482, title I, Sec. 176(a)(3)-(5),
    title V, Sec. 501(a)(20), Oct. 12, 1976, 90 Stat. 2165, 2236; Pub.
    L. 95-180, Sec. 1(c), Nov. 15, 1977, 91 Stat. 1372; Pub. L. 96-49,
    Sec. 53(a), Aug. 13, 1979, 93 Stat. 354, related to development
    plans for expansion or improvement of postsecondary education
    programs in community colleges, prior to repeal by section 1001(a)
    of Pub. L. 96-374.
      Another prior section 1135, Pub. L. 89-329, title X, Sec. 1001,
    as added Pub. L. 90-575, title II, Sec. 271, Oct. 16, 1968, 82
    Stat. 1047, contained Congressional statement of purpose respecting
    improvement of graduate programs, prior to the general amendment of
    subchapter X of this chapter by Pub. L. 92-318.
      A prior section 711 of Pub. L. 89-329 was classified to section
    1132b of this title, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 711 of Pub. L. 89-329 was classified to
    section 1132b of this title, prior to the general amendment of part
    A of this subchapter by Pub. L. 102-325.
      Another prior section 711 of Pub. L. 89-329 was classified to
    section 1132b of this title, prior to the general amendment of this
    subchapter by Pub. L. 99-498.

-End-



-CITE-
    20 USC Sec. 1135a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 2 - graduate assistance in areas of national need

-HEAD-
    Sec. 1135a. Institutional eligibility

-STATUTE-
    (a) Eligibility criteria
      Any academic department, program or unit of an institution of
    higher education that offers a program of postbaccalaureate study
    leading to a graduate degree in an area of national need (as
    designated under subsection (b) of this section) may apply for a
    grant under this subpart. No department, program or unit shall be
    eligible for a grant unless the program of postbaccalaureate study
    has been in existence for at least 4 years at the time of
    application for assistance under this subpart.
    (b) Designation of areas of national need
      After consultation with appropriate Federal and nonprofit
    agencies and organizations, the Secretary shall designate areas of
    national need. In making such designations, the Secretary shall
    take into account the extent to which the interest in the area is
    compelling, the extent to which other Federal programs support
    postbaccalaureate study in the area concerned, and an assessment of
    how the program could achieve the most significant impact with
    available resources.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 712, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1791.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1134n of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1135a, Pub. L. 89-329, title X, Sec. 1002, as
    added Pub. L. 96-374, title X, Sec. 1001(a), Oct. 3, 1980, 94 Stat.
    1489; amended Pub. L. 102-325, title X, Sec. 1001, July 23, 1992,
    106 Stat. 778, related to National Board of the Fund for the
    Improvement of Postsecondary Education, prior to repeal by Pub. L.
    105-244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585,
    1803, effective Oct. 1, 1998. See section 1138a of this title.
      Another prior section 1135a, Pub. L. 89-329, title X, Sec. 1011,
    as added Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86
    Stat. 313; amended Pub. L. 94-482, title I, Sec. 176(b)(2), Oct.
    12, 1976, 90 Stat. 2165; Pub. L. 96-49, Sec. 53(b), Aug. 13, 1979,
    93 Stat. 354, authorized appropriations for a program of
    establishment and expansion of community colleges, prior to repeal
    by section 1001(a) of Pub. L. 96-374.
      Another prior section 1135a, Pub. L. 89-329, title X, Sec. 1002,
    as added Pub. L. 90-575, title II, Sec. 271, Oct. 16, 1968, 82
    Stat. 1047, authorized appropriations, provided for types of
    programs, and prescribed limitations respecting improvement of
    graduate programs, prior to the general amendment of subchapter X
    of this chapter by Pub. L. 92-318.
      A prior section 712 of Pub. L. 89-329 was classified to section
    1132b-1 of this title, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 712 of Pub. L. 89-329 was classified to
    section 1132b-1 of this title, prior to the general amendment of
    part A of this subchapter by Pub. L. 102-325.
      Another prior section 712 of Pub. L. 89-329 was classified to
    section 1132b-1 of this title, prior to the general amendment of
    this subchapter by Pub. L. 99-498.
      A prior section 1135a-1, Pub. L. 89-329, title X, Sec. 1003, as
    added Pub. L. 96-374, title X, Sec. 1001(a), Oct. 3, 1980, 94 Stat.
    1490; amended Pub. L. 99-498, title X, Sec. 1001(a), Oct. 17, 1986,
    100 Stat. 1560; Pub. L. 102-325, title X, Sec. 1001, July 23, 1992,
    106 Stat. 779, contained administrative provisions, prior to repeal
    by Pub. L. 105-244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112
    Stat. 1585, 1803, effective Oct. 1, 1998. See section 1138b of this
    title.
      Another prior section 1135a-1, Pub. L. 89-329, title X, Sec.
    1012, as added Pub. L. 92-318, title I, Sec. 186(a)(1), June 23,
    1972, 86 Stat. 313; amended Pub. L. 94-482, title I, Sec.
    176(b)(3), Oct. 12, 1976, 90 Stat. 2165; Pub. L. 95-180, Sec. 1(c),
    Nov. 15, 1977, 91 Stat. 1372, related to the apportionment of funds
    in the program of establishing and expanding community colleges,
    prior to repeal by section 1001(a) of Pub. L. 96-374.
      A prior section 1135a-2, Pub. L. 89-329, title X, Sec. 1004, as
    added Pub. L. 96-374, title X, Sec. 1001(a), Oct. 3, 1980, 94 Stat.
    1490; amended Pub. L. 102-325, title X, Sec. 1001, July 23, 1992,
    106 Stat. 779; Pub. L. 103-208, Sec. 2(j)(42), Dec. 20, 1993, 107
    Stat. 2484, authorized appropriations for the Fund for the
    Improvement of Postsecondary Education, prior to repeal by Pub. L.
    105-244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585,
    1803, effective Oct. 1, 1998. See section 1138d of this title.
      Another prior section 1135a-2, Pub. L. 89-329, title X, Sec.
    1013, as added Pub. L. 92-318, title I, Sec. 186(a)(1), June 23,
    1972, 86 Stat. 314, provided for establishment grants and defined
    the term "new community college", prior to repeal by section
    1001(a) of Pub. L. 96-374.
      A prior section 1135a-3, Pub. L. 89-329, title X, Sec. 1005, as
    added Pub. L. 96-374, title X, Sec. 1001(a), Oct. 3, 1980, 94 Stat.
    1491; amended Pub. L. 99-498, title X, Sec. 1001(b), Oct. 17, 1986,
    100 Stat. 1561, authorized appropriations to carry out part A of
    former subchapter X of this chapter for fiscal years 1987 to 1991,
    prior to the general amendment of that part by Pub. L. 102-325.
      Another prior section 1135a-3 and prior sections 1135a-4 to 1135a-
    7 were repealed by Pub. L. 96-374, title X, Sec. 1001(a), Oct. 3,
    1980, 94 Stat. 1489, eff. Oct. 1, 1980.
      Section 1135a-3, Pub. L. 89-329, title X, Sec. 1014, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    314; amended Pub. L. 94-482, title I, Sec. 177, Oct. 12, 1976, 90
    Stat. 2165, related to expansion grants.
      Section 1135a-4, Pub. L. 89-329, title X, Sec. 1015, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    314, related to leasing of facilities.
      Section 1135a-5, Pub. L. 89-329, title X, Sec. 1016, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    315, related to establishment and expansion grants.
      Section 1135a-6, Pub. L. 89-329, title X, Sec. 1017, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    315, authorized payment to approved applicants.
      Section 1135a-7, Pub. L. 89-329, title X, Sec. 1018, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    315; amended Pub. L. 94-482, title I, Sec. 178, Oct. 12, 1976, 90
    Stat. 2166, defined the term "community college".
      A prior section 1135a-11, Pub. L. 89-329, title X, Sec. 1011, as
    added Pub. L. 102-325, title X, Sec. 1001, July 23, 1992, 106 Stat.
    780; amended Pub. L. 103-208, Sec. 2(j)(43), Dec. 20, 1993, 107
    Stat. 2484, authorized grants for special projects in areas of
    national need, prior to repeal by Pub. L. 105-244, Sec. 3, title
    VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803, effective Oct.
    1, 1998. See section 1138c of this title.

-End-



-CITE-
    20 USC Sec. 1135b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 2 - graduate assistance in areas of national need

-HEAD-
    Sec. 1135b. Criteria for applications

-STATUTE-
    (a) Selection of applications
      The Secretary shall make grants to academic departments, programs
    and units of institutions of higher education on the basis of
    applications submitted in accordance with subsection (b) of this
    section. Applications shall be ranked on program quality by review
    panels of nationally recognized scholars and evaluated on the
    quality and effectiveness of the academic program and the
    achievement and promise of the students to be served. To the extent
    possible (consistent with other provisions of this section), the
    Secretary shall make awards that are consistent with
    recommendations of the review panels.
    (b) Contents of applications
      An academic department, program or unit of an institution of
    higher education, in the department, program or unit's application
    for a grant, shall - 
        (1) describe the current academic program of the applicant for
      which the grant is sought;
        (2) provide assurances that the applicant will provide, from
      other non-Federal sources, for the purposes of the fellowship
      program under this subpart an amount equal to at least 25 percent
      of the amount of the grant received under this subpart, which
      contribution may be in cash or in kind, fairly valued;
        (3) set forth policies and procedures to assure that, in making
      fellowship awards under this subpart, the institution will seek
      talented students from traditionally underrepresented
      backgrounds, as determined by the Secretary;
        (4) describe the number, types, and amounts of the fellowships
      that the applicant intends to offer with grant funds provided
      under this part;
        (5) set forth policies and procedures to assure that, in making
      fellowship awards under this subpart, the institution will make
      awards to individuals who - 
          (A) have financial need, as determined under part E of
        subchapter IV of this chapter;
          (B) have excellent academic records in their previous
        programs of study; and
          (C) plan to pursue the highest possible degree available in
        their course of study;

        (6) set forth policies and procedures to ensure that Federal
      funds made available under this subpart 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 purpose of
      this subpart and in no case to supplant those funds;
        (7) provide assurances that, in the event that funds made
      available to the academic department, program or unit under this
      subpart are insufficient to provide the assistance due a student
      under the commitment entered into between the academic
      department, program or unit and the student, the academic
      department, program or unit will, from any funds available to the
      department, program or unit, fulfill the commitment to the
      student;
        (8) provide that the applicant will comply with the limitations
      set forth in section 1135d of this title;
        (9) provide assurances that the academic department will
      provide at least 1 year of supervised training in instruction for
      students; and
        (10) include such other information as the Secretary may
      prescribe.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 713, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1791.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1134o of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1135b, Pub. L. 89-329, title X, Sec. 1021, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1561, and amended, which related to purpose of and authority for
    minority science improvement program, was renumbered section 351 of
    title III of Pub. L. 89-329 by Pub. L. 105-244, title III, Sec.
    301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636, and transferred to
    section 1067a of this title.
      Another prior section 1135b, Pub. L. 89-329, title X, Sec. 1051,
    as added Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86
    Stat. 316, authorized appropriations for occupational education
    programs, prior to repeal by Pub. L. 94-482, title I, Sec. 176(c),
    title II, Sec. 204(c)(2), Oct. 12, 1976, 90 Stat. 2165, 2215, eff.
    Sept. 30, 1977, Oct. 1, 1977.
      Another prior section 1135b, Pub. L. 89-329, title X, Sec. 1003,
    as added Pub. L. 90-575, title II, Sec. 271, Oct. 16, 1968, 82
    Stat. 1048, related to selection of grant recipients for
    improvement of graduate programs, prior to the general amendment of
    subchapter X of this chapter by Pub. L. 92-318.
      A prior section 713 of Pub. L. 89-329 was classified to section
    1132b-2 of this title, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 713 of Pub. L. 89-329 was classified to
    section 1132b-2 of this title, prior to the general amendment of
    part A of this subchapter by Pub. L. 102-325.
      Another prior section 713 of Pub. L. 89-329 was classified to
    section 1132b-2 of this title, prior to the general amendment of
    this subchapter by Pub. L. 99-498.
      A prior section 1135b-1, Pub. L. 89-329, title X, Sec. 1022, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1561, which related to grant recipient selection, was renumbered
    section 352 of title III of Pub. L. 89-329 by Pub. L. 105-244,
    title III, Sec. 301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636, and
    transferred to section 1067b of this title.
      Another prior section 1135b-1, Pub. L. 89-329, title X, Sec.
    1052, as added Pub. L. 92-318, title I, Sec. 186(a)(1), June 23,
    1972, 86 Stat. 316, set forth allotment and reallotment
    requirements for funds appropriated for programs, prior to repeal
    by Pub. L. 94-482, title I, Sec. 176(c), title II, Sec. 204(c)(2),
    Oct. 12, 1976, 90 Stat. 2165, 2215, eff. Sept. 30, 1977, Oct. 1,
    1977.
      A prior section 1135b-2, Pub. L. 89-329, title X, Sec. 1023, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1562, which related to use of funds, was renumbered section 353 of
    title III of Pub. L. 89-329 by Pub. L. 105-244, title III, Sec.
    301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636, and transferred to
    section 1067c of this title.
      Another prior section 1135b-2, Pub. L. 89-329, title X, Sec.
    1053, as added Pub. L. 92-318, title I, Sec. 186(a)(1), June 23,
    1972, 86 Stat. 317, set forth requirements for administration of
    programs by Secretary, prior to repeal by Pub. L. 94-482, title I,
    Sec. 176(c), title II, Sec. 204(c)(2), Oct. 12, 1976, 90 Stat.
    2165, 2215, eff. Sept. 30, 1987, Oct. 1, 1977.
      A prior section 1135b-3, Pub. L. 89-329, title X, Sec. 1024, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1562, and amended, which required multiagency study of minority
    science programs, was renumbered section 1024 of title III of Pub.
    L. 89-329 by Pub. L. 105-244, title III, Sec. 301(a)(5), Oct. 7,
    1998, 112 Stat. 1636, transferred to section 1067d of this title,
    and omitted from the Code.
      Another prior section 1135b-3 and prior sections 1135b-4 to 1135b-
    9 were repealed by Pub. L. 94-482, title I, Sec. 176(c), title II,
    Sec. 204(c)(2), Oct. 12, 1976, 90 Stat. 2165, 2215, eff. Sept. 30,
    1977, Oct. 1, 1977.
      Section 1135b-3, Pub. L. 89-329, title X, Sec. 1054, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    317, set forth responsibilities of Commissioner of Education in the
    administration of programs.
      Section 1135b-4, Pub. L. 89-329, title X, Sec. 1055, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    318, set forth requirements for State participation and
    administration of programs.
      Section 1135b-5, Pub. L. 89-329, title X, Sec. 1056, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    318, authorized planning grants for State occupational education
    programs and set forth criteria for State participation.
      Section 1135b-6, Pub. L. 89-329, title X, Sec. 1057, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    319, authorized program grants for State occupational education
    programs and set forth criteria for State administration of grants.
      Section 1135b-7, Pub. L. 89-329, title X, Sec. 1058, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    320, set forth prerequisites and procedures for program grants by
    Commissioner and provided for judicial review of actions of
    Commissioner.
      Section 1135b-8, Pub. L. 89-329, title X, Sec. 1059, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    321, authorized technical assistance to the States by Commissioner
    and the establishment of model programs.
      Section 1135b-9, Pub. L. 89-329, title X, Sec. 1060, as added
    Pub. L. 92-318, title I, Sec. 186(a)(1), June 23, 1972, 86 Stat.
    322, defined the terms "State" and "postsecondary occupational
    education" for purposes of occupational education programs.

-End-



-CITE-
    20 USC Sec. 1135c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 2 - graduate assistance in areas of national need

-HEAD-
    Sec. 1135c. Awards to graduate students

-STATUTE-
    (a) Commitments to graduate students
      (1) In general
        An academic department, program or unit of an institution of
      higher education shall make commitments to graduate students who
      are eligible students under section 1091 of this title (including
      students pursuing a doctoral degree after having completed a
      master's degree program at an institution of higher education) at
      any point in their graduate study to provide stipends for the
      length of time necessary for a student to complete the course of
      graduate study, but in no case longer than 5 years.
      (2) Special rule
        No such commitments shall be made to students under this
      subpart unless the academic department, program or unit has
      determined adequate funds are available to fulfill the commitment
      from funds received or anticipated under this subpart, or from
      institutional funds.
    (b) Amount of stipends
      The Secretary shall make payments to institutions of higher
    education for the purpose of paying stipends to individuals who are
    awarded fellowships under this subpart. The stipends the Secretary
    establishes shall reflect the purpose of the program under this
    subpart to encourage highly talented students to undertake graduate
    study as described in this subpart. In the case of an individual
    who receives such individual's first stipend under this subpart in
    academic year 1999-2000 or any succeeding academic year, such
    stipend shall be set at a level of support equal to that provided
    by the National Science Foundation graduate fellowships, except
    such amount shall be adjusted as necessary so as not to exceed the
    fellow's demonstrated level of need as determined under part E of
    subchapter IV of this chapter.
    (c) Treatment of institutional payments
      An institution of higher education that makes institutional
    payments for tuition and fees on behalf of individuals supported by
    fellowships under this subpart in amounts that exceed the
    institutional payments made by the Secretary pursuant to section
    1135d(a) (!1) of this title may count such excess toward the
    amounts the institution is required to provide pursuant to section
    1135b(b)(2) (!1) of this title.

    (d) Academic progress required
      Notwithstanding the provisions of subsection (a) of this section,
    no student shall receive an award - 
        (1) except during periods in which such student is maintaining
      satisfactory progress in, and devoting essentially full time to,
      study or research in the field in which such fellowship was
      awarded; or
        (2) if the student is engaging in gainful employment other than
      part-time employment involved in teaching, research, or similar
      activities determined by the institution to be in support of the
      student's progress towards a degree.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 714, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1792.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1135d(a) of this title, referred to in subsec. (c), was
    in the original "section 716(a)", meaning section 716(a) of Pub. L.
    89-329, which was translated as reading section 715(a) of that Act
    to reflect the probable intent of Congress, because section 715(a)
    relates to institutional payments, and section 716, which is
    classified to section 1135e of this title, does not relate to
    institutional payments and does not contain a subsec. (a).
      Section 1135b(b)(2) of this title, referred to in subsec. (c),
    was in the original "section 714(b)(2)", meaning section 714(b)(2)
    of Pub. L. 89-329, which was translated as reading section
    713(b)(2) of that Act to reflect the probable intent of Congress,
    because section 713(b)(2) relates to amounts that institutions are
    required to provide from non-Federal sources, and section 714,
    which is classified to this section, does not relate to amounts
    that institutions are required to provide and does not contain a
    subsec. (b)(2).


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1134p of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1135c, Pub. L. 89-329, title X, Sec. 1031, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1563, related to minority support in science and engineering
    programs, prior to repeal by Pub. L. 105-244, Sec. 3, title VII,
    Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803, effective Oct. 1,
    1998.
      Another prior section 1135c, Pub. L. 89-329, title X, Sec. 1021,
    formerly Sec. 1071, as added Pub. L. 92-318, title I, Sec.
    186(a)(1), June 23, 1972, 86 Stat. 322, established Bureau of
    Occupational and Adult Education and set forth functions, personnel
    etc., of the Bureau, prior to repeal by Pub. L. 94-482, title II,
    Sec. 204(c)(3), Oct. 12, 1976, 90 Stat. 2215, eff. Oct. 1, 1977.
    Subsequent to repeal, this prior section 1135c was renumbered
    section 1021 of Pub. L. 89-329 and amended by deleting "this title"
    by Pub. L. 96-374, title X, Sec. 1001(b), Oct. 3, 1980, 94 Stat.
    1491.
      Another prior section 1135c, Pub. L. 89-329, title X, Sec. 1004,
    as added Pub. L. 90-575, title II, Sec. 271, Oct. 16, 1968, 82
    Stat. 1048, provided for consultations respecting improvement of
    graduate programs, prior to the general amendment of subchapter X
    of this chapter by Pub. L. 92-318.
      A prior section 714 of Pub. L. 89-329 was classified to section
    1132b-3 of this title, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      A prior section 1135c-1, Pub. L. 89-329, title X, Sec. 1032, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1563, related to the special service projects program, prior to
    repeal by Pub. L. 105-244, Sec. 3, title VII, Sec. 702, Oct. 7,
    1998, 112 Stat. 1585, 1803, effective Oct. 1, 1998.
      Another prior section 1135c-1, Pub. L. 89-329, title X, Sec.
    1022, formerly Sec. 1072, as added Pub. L. 92-318, title I, Sec.
    186(a)(1), June 23, 1972, 86 Stat. 323; amended Pub. L. 96-88,
    title III, Sec. 301(b)(2), Oct. 17, 1979, 93 Stat. 678, renumbered
    and amended Pub. L. 96-374, title X, Sec. 1001(b)(1), title XIII,
    Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1491, 1503; Pub. L. 98-524,
    Sec. 4(c)(3), Oct. 19, 1984, 98 Stat. 2488, established a Community
    College Unit in Department of Education, prior to the general
    amendment of part B of subchapter X of this chapter by Pub. L. 99-
    498.
      A prior section 1135c-2, Pub. L. 89-329, title X, Sec. 1033, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1563; amended Pub. L. 102-325, title X, Sec. 1002(c), July 23,
    1992, 106 Stat. 780, related to supportable activities, prior to
    repeal by Pub. L. 105-244, Sec. 3, title VII, Sec. 702, Oct. 7,
    1998, 112 Stat. 1585, 1803, effective Oct. 1, 1998.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    20 USC Sec. 1135d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 2 - graduate assistance in areas of national need

-HEAD-
    Sec. 1135d. Additional assistance for cost of education

-STATUTE-
    (a) Institutional payments
      (1) In general
        The Secretary shall (in addition to stipends paid to
      individuals under this subpart) pay to the institution of higher
      education, for each individual awarded a fellowship under this
      subpart at such institution, an institutional allowance. Except
      as provided in paragraph (2), such allowance shall be, for 1999-
      2000 and succeeding academic years, the same amount as the
      institutional payment made for 1998-1999 adjusted annually
      thereafter in accordance with inflation as determined by the
      Department of Labor's Consumer Price Index for the previous
      calendar year.
      (2) Reduction
        The institutional allowance paid under paragraph (1) shall be
      reduced by the amount the institution charges and collects from a
      fellowship recipient for tuition and other expenses as part of
      the recipient's instructional program.
    (b) Use for overhead prohibited
      Funds made available pursuant to this subpart may not be used for
    the general operational overhead of the academic department or
    program.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 715, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1793.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1134q of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1135d, Pub. L. 89-329, title X, Sec. 1041, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1564, which related to eligibility for grants, was renumbered
    section 361 of title III of Pub. L. 89-329 by Pub. L. 105-244,
    title III, Sec. 301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636, and
    transferred to section 1067g of this title.
      A prior section 715 of Pub. L. 89-329 was classified to section
    1132b-4 of this title, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      A prior section 1135d-1, Pub. L. 89-329, title X, Sec. 1042, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1564, which related to grant applications, was renumbered section
    362 of title III of Pub. L. 89-329 by Pub. L. 105-244, title III,
    Sec. 301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636, and transferred
    to section 1067h of this title.
      A prior section 1135d-2, Pub. L. 89-329, title X, Sec. 1043, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1564, and amended, which related to cross program and cross agency
    cooperation, was renumbered section 363 of title III of Pub. L. 89-
    329 by Pub. L. 105-244, title III, Sec. 301(a)(5), (7), Oct. 7,
    1998, 112 Stat. 1636, and transferred to section 1067i of this
    title.
      A prior section 1135d-3, Pub. L. 89-329, title X, Sec. 1044, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1564, which contained administrative provisions, was renumbered
    section 364 of title III of Pub. L. 89-329 by Pub. L. 105-244,
    title III, Sec. 301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636, and
    transferred to section 1067j of this title.
      A prior section 1135d-4, Pub. L. 89-329, title X, Sec. 1045, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1565, related to establishment of Advisory Board for the Minority
    Science and Engineering Improvement Programs, prior to repeal by
    Pub. L. 102-325, Sec. 2, title X, Sec. 1002(e), July 23, 1992, 106
    Stat. 458, 780, effective Oct. 1, 1992.
      A prior section 1135d-5, Pub. L. 89-329, title X, Sec. 1046, as
    added Pub. L. 99-498, title X, Sec. 1002, Oct. 17, 1986, 100 Stat.
    1566, which defined terms, was renumbered section 365 of title III
    of Pub. L. 89-329 by Pub. L. 105-244, title III, Sec. 301(a)(5),
    (7), Oct. 7, 1998, 112 Stat. 1636, and transferred to section 1067k
    of this title.
      A prior section 1135d-6, Pub. L. 89-329, 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, which authorized appropriations, was
    renumbered section 366 of title III of Pub. L. 89-329 by Pub. L.
    105-244, title III, Sec. 301(a)(5), (7), Oct. 7, 1998, 112 Stat.
    1636, and transferred to section 1067l of this title, and repealed
    by section 301(a)(8) of Pub. L. 105-244.

-End-



-CITE-
    20 USC Sec. 1135e                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 2 - graduate assistance in areas of national need

-HEAD-
    Sec. 1135e. Authorization of appropriations

-STATUTE-
      There are authorized to be appropriated $35,000,000 for fiscal
    year 1999 and such sums as may be necessary for each of the 4
    succeeding fiscal years to carry out this subpart.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 716, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1794.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1135e, Pub. L. 89-329, title X, Sec. 1061, as
    added Pub. L. 99-498, title X, Sec. 1003, Oct. 17, 1986, 100 Stat.
    1567; amended Pub. L. 102-325, title X, Sec. 1003, July 23, 1992,
    106 Stat. 781, stated purpose of women and minorities science and
    engineering outreach demonstration program, prior to repeal by Pub.
    L. 105-244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat.
    1585, 1803, effective Oct. 1, 1998.
      A prior section 716 of Pub. L. 89-329 was classified to section
    1132b-5 of this title, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Prior sections 1135e-1 to 1135g were repealed by Pub. L. 105-244,
    Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803,
    effective Oct. 1, 1998.
      Section 1135e-1, Pub. L. 89-329, title X, Sec. 1062, as added
    Pub. L. 99-498, title X, Sec. 1003, Oct. 17, 1986, 100 Stat. 1567;
    amended Pub. L. 102-325, title X, Sec. 1003, July 23, 1992, 106
    Stat. 781, authorized grants for programs to encourage female and
    minority elementary and secondary school students to pursue higher
    education for careers in science and engineering.
      Section 1135e-2, Pub. L. 89-329, title X, Sec. 1063, as added
    Pub. L. 99-498, title X, Sec. 1003, Oct. 17, 1986, 100 Stat. 1567;
    amended Pub. L. 102-325, title X, Sec. 1003, July 23, 1992, 106
    Stat. 781, defined "eligible institution" and related to
    availability of funds.
      Section 1135e-3, Pub. L. 89-329, title X, Sec. 1064, as added
    Pub. L. 102-325, title X, Sec. 1003, July 23, 1992, 106 Stat. 782,
    related to amount, duration, and use of funds.
      Section 1135e-4, Pub. L. 89-329, title X, Sec. 1065, as added
    Pub. L. 102-325, title X, Sec. 1003, July 23, 1992, 106 Stat. 782,
    related to applications for grants.
      Section 1135e-5, Pub. L. 89-329, title X, Sec. 1066, as added
    Pub. L. 102-325, title X, Sec. 1003, July 23, 1992, 106 Stat. 782,
    related to evaluation of assisted activities.
      Section 1135e-6, Pub. L. 89-329, title X, Sec. 1067, as added
    Pub. L. 102-325, title X, Sec. 1003, July 23, 1992, 106 Stat. 783,
    related to Federal share of costs.
      Section 1135e-7, Pub. L. 89-329, title X, Sec. 1068, as added
    Pub. L. 102-325, title X, Sec. 1003, July 23, 1992, 106 Stat. 783,
    related to use of funds to supplement and not supplant other funds.
      Section 1135e-8, Pub. L. 89-329, title X, Sec. 1069, as added
    Pub. L. 102-325, title X, Sec. 1003, July 23, 1992, 106 Stat. 783,
    authorized appropriations for women and minorities science and
    engineering outreach demonstration program.
      Section 1135f, Pub. L. 89-329, title X, Sec. 1081, formerly Sec.
    1181, as added Pub. L. 102-325, title X, Sec. 1004, July 23, 1992,
    106 Stat. 783; renumbered Sec. 1081 and amended Pub. L. 103-208,
    Sec. 2(j)(44), (45), Dec. 20, 1993, 107 Stat. 2485, established
    Dwight D. Eisenhower Leadership Program and provided that part D of
    former subchapter X of this chapter could be cited as the "Dwight
    D. Eisenhower Leadership Development Act of 1992".
      Section 1135g, Pub. L. 89-329, title X, Sec. 1091, as added Pub.
    L. 103-382, title III, Sec. 360D, Oct. 20, 1994, 108 Stat. 3972,
    authorized grants to States for workplace and community transition
    training for incarcerated youth offenders.

-End-


-CITE-
    20 USC subpart 3 - thurgood marshall legal educational
           opportunity program                             01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 3 - thurgood marshall legal educational opportunity program

-HEAD-
    SUBPART 3 - THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM

-End-



-CITE-
    20 USC Sec. 1136                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 3 - thurgood marshall legal educational opportunity program

-HEAD-
    Sec. 1136. Legal educational opportunity program

-STATUTE-
    (a) Program authority
      The Secretary shall carry out a program to be known as the
    "Thurgood Marshall Legal Educational Opportunity Program" designed
    to provide low-income, minority, or disadvantaged college students
    with the information, preparation, and financial assistance to gain
    access to and complete law school study.
    (b) Eligibility
      A college student is eligible for assistance under this section
    if the student is - 
        (1) from a low-income family;
        (2) a minority; or
        (3) from an economically or otherwise disadvantaged background.
    (c) Contract or grant authorized
      The Secretary is authorized to enter into a contract with, or
    make a grant to, the Council on Legal Education Opportunity, for a
    period of not less than 5 years - 
        (1) to identify college students who are from low-income
      families, are minorities, or are from disadvantaged backgrounds
      described in subsection (b)(3) of this section;
        (2) to prepare such students for study at accredited law
      schools;
        (3) to assist such students to select the appropriate law
      school, make application for entry into law school, and receive
      financial assistance for such study;
        (4) to provide support services to such students who are first-
      year law students to improve retention and success in law school
      studies; and
        (5) to motivate and prepare such students with respect to law
      school studies and practice in low-income communities.
    (d) Services provided
      In carrying out the purposes described in subsection (c) of this
    section, the contract or grant shall provide for the delivery of
    services through prelaw information resource centers, summer
    institutes, midyear seminars, and other educational activities,
    conducted under this section. Such services may include - 
        (1) information and counseling regarding - 
          (A) accredited law school academic programs, especially
        tuition, fees, and admission requirements;
          (B) course work offered and required for graduation;
          (C) faculty specialties and areas of legal emphasis; and
          (D) undergraduate preparatory courses and curriculum
        selection;

        (2) tutoring and academic counseling, including assistance in
      preparing for bar examinations;
        (3) prelaw mentoring programs, involving law school faculty,
      members of State and local bar associations, and retired and
      sitting judges, justices, and magistrates;
        (4) assistance in identifying preparatory courses and material
      for the law school aptitude or admissions tests;
        (5) summer institutes for Thurgood Marshall Fellows that expose
      the Fellows to a rigorous curriculum that emphasizes abstract
      thinking, legal analysis, research, writing, and examination
      techniques; and
        (6) midyear seminars and other educational activities that are
      designed to reinforce reading, writing, and studying skills of
      Thurgood Marshall Fellows.
    (e) Duration of provision of services
      The services described in subsection (d) of this section may be
    provided - 
        (1) prior to the period of law school study;
        (2) during the period of law school study; and
        (3) during the period following law school study and prior to
      taking a bar examination.
    (f) Subcontracts and subgrants
      For the purposes of planning, developing, or delivering one or
    more of the services described in subsection (d) of this section,
    the Council on Legal Education Opportunity shall enter into
    subcontracts with, and make subgrants to, institutions of higher
    education, law schools, public and private agencies and
    organizations, and combinations of such institutions, schools,
    agencies, and organizations.
    (g) Stipends
      The Secretary shall annually establish the maximum stipend to be
    paid (including allowances for participant travel and for the
    travel of the dependents of the participant) to Thurgood Marshall
    Fellows for the period of participation in summer institutes and
    midyear seminars. A Fellow may be eligible for such a stipend only
    if the Thurgood Marshall Fellow maintains satisfactory academic
    progress toward the Juris Doctor or Bachelor of Laws degree, as
    determined by the respective institutions.
    (h) Authorization of appropriations
      There are authorized to be appropriated to carry out this section
    $5,000,000 for fiscal year 1999 and each of the 4 succeeding fiscal
    years.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 721, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1794.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1136, Pub. L. 89-329, title XI, Sec. 1101, as
    added Pub. L. 102-325, title XI, Sec. 1101, July 23, 1992, 106
    Stat. 784, stated findings of Congress, prior to repeal by Pub. L.
    105-244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585,
    1803, effective Oct. 1, 1998. See section 1139 of this title.
      Another prior section 1136, Pub. L. 89-329, title XI, Sec. 1101,
    as added Pub. L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100
    Stat. 1568, stated Congressional findings and purpose relating to
    partnerships for economic development, prior to the general
    amendment of subchapter XI of this chapter by Pub. L. 102-325.
      Another prior section 1136, Pub. L. 89-329, title XI, Sec. 1101,
    as added Pub. L. 96-374, title XI, Sec. 1101, Oct. 3, 1980, 94
    Stat. 1491, stated Congressional findings and declaration of
    purpose, prior to the general amendment of subchapter XI of this
    chapter by Pub. L. 99-498.
      Another prior section 1136, Pub. L. 89-329, title XI, Sec. 1101,
    as added Pub. L. 90-575, title II, Sec. 281, Oct. 16, 1968, 82
    Stat. 1048; amended Pub. L. 92-318, title I, Sec. 191(a), (b), June
    23, 1972, 86 Stat. 323, authorized a program for grants and
    contracts covering the establishment of a law school clinical
    experiences regimen, prior to the general amendment of subchapter
    XI of this chapter by Pub. L. 96-374.
      A prior section 721 of Pub. L. 89-329 was renumbered section 341
    and is classified to section 1066 of this title.
      Another prior section 721 of Pub. L. 89-329 was classified to
    section 1132c of this title, prior to the general amendment of part
    A of this subchapter by Pub. L. 102-325.
      Another prior section 721 of Pub. L. 89-329 was classified to
    section 1132c of this title, prior to the general amendment of this
    subchapter by Pub. L. 99-498.
      Another prior section 721 of Pub. L. 89-329 was classified to
    section 1132b of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      Prior sections 1136a to 1136h were repealed by Pub. L. 105-244,
    Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803,
    effective Oct. 1, 1998.
      Section 1136a, Pub. L. 89-329, title XI, Sec. 1102, as added Pub.
    L. 102-325, title XI, Sec. 1101, July 23, 1992, 106 Stat. 785,
    stated purpose of and authorized program for urban community
    service assistance. See section 1139a of this title.
      A prior section 1136a, Pub. L. 89-329, title XI, Sec. 1102, as
    added Pub. L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100 Stat.
    1568, related to use of economic development funds, prior to the
    general amendment of subchapter XI of this chapter by Pub. L. 102-
    325.
      Another prior section 1136a, Pub. L. 89-329, title XI, Sec. 1102,
    as added Pub. L. 96-374, title XI, Sec. 1101, Oct. 3, 1980, 94
    Stat. 1491, authorized appropriations for fiscal years 1981 to 1985
    for urban grant university program, prior to the general amendment
    of subchapter XI of this chapter by Pub. L. 99-498.
      Another prior section 1136a, Pub. L. 89-329, title XI, Sec. 1102,
    as added Pub. L. 90-575, title II, Sec. 281, Oct. 16, 1968, 82
    Stat. 1048; amended Pub. L. 92-318, title I, Sec. 191(a), June 23,
    1972, 86 Stat. 323, related to required applications for
    participation in law school clinical experiences program, prior to
    the general amendment of subchapter XI of this chapter by Pub. L.
    96-374.
      Section 1136b, Pub. L. 89-329, title XI, Sec. 1103, as added Pub.
    L. 102-325, title XI, Sec. 1101, July 23, 1992, 106 Stat. 785,
    related to applications for urban community service grants. See
    section 1139b of this title.
      A prior section 1136b, Pub. L. 89-329, title XI, Sec. 1103, as
    added Pub. L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100 Stat.
    1569, related to requirements for economic development grant
    applications, prior to the general amendment of subchapter XI of
    this chapter by Pub. L. 102-325.
      Another prior section 1136b, Pub. L. 89-329, title XI, Sec. 1103,
    as added Pub. L. 96-374, title XI, Sec. 1101, Oct. 3, 1980, 94
    Stat. 1492, authorized grants to urban universities, prior to the
    general amendment of subchapter XI of this chapter by Pub. L. 99-
    498.
      Another prior section 1136b, Pub. L. 89-329, title XI, Sec. 1103,
    as added Pub. L. 90-575, title II, Sec. 281, Oct. 16, 1968, 82
    Stat. 1049; amended Pub. L. 92-318, title I, Sec. 191(c), June 23,
    1972, 86 Stat. 323; Pub. L. 94-482, title I, Sec. 172, Oct. 12,
    1976, 90 Stat. 2164; Pub. L. 96-49, Sec. 11, Aug. 13, 1979, 93
    Stat. 354, authorized appropriations for the law school clinical
    experiences program, prior to the general amendment of subchapter
    XI of this chapter by Pub. L. 96-374.
      Section 1136c, Pub. L. 89-329, title XI, Sec. 1104, as added Pub.
    L. 102-325, title XI, Sec. 1101, July 23, 1992, 106 Stat. 786,
    related to allowable activities. See section 1139c of this title.
      Another prior section 1136c, Pub. L. 89-329, title XI, Sec. 1104,
    as added Pub. L. 96-374, title XI, Sec. 1101, Oct. 3, 1980, 94
    Stat. 1492, placed geographical limitations on assistance to urban
    universities, prior to the general amendment of subchapter XI of
    this chapter by Pub. L. 99-498.
      Section 1136d, Pub. L. 89-329, title XI, Sec. 1105, as added Pub.
    L. 102-325, title XI, Sec. 1101, July 23, 1992, 106 Stat. 786,
    related to peer review. See section 1139d of this title.
      Another prior section 1136d, Pub. L. 89-329, title XI, Sec. 1105,
    as added Pub. L. 96-374, title XI, Sec. 1101, Oct. 3, 1980, 94
    Stat. 1492, defined terms, prior to the general amendment of
    subchapter XI of this chapter by Pub. L. 99-498.
      Section 1136e, Pub. L. 89-329, title XI, Sec. 1106, as added Pub.
    L. 102-325, title XI, Sec. 1101, July 23, 1992, 106 Stat. 786;
    amended Pub. L. 103-208, Sec. 2(j)(46), Dec. 20, 1993, 107 Stat.
    2485, related to disbursement of funds. See section 1139e of this
    title.
      Section 1136f, Pub. L. 89-329, title XI, Sec. 1107, as added Pub.
    L. 102-325, title XI, Sec. 1101, July 23, 1992, 106 Stat. 787,
    related to designation of Urban Grant Institutions. See section
    1139f of this title.
      Section 1136g, Pub. L. 89-329, title XI, Sec. 1108, as added Pub.
    L. 102-325, title XI, Sec. 1101, July 23, 1992, 106 Stat. 787,
    defined terms "urban area" and "eligible institution". See section
    1139g of this title.
      Section 1136h, Pub. L. 89-329, title XI, Sec. 1109, as added Pub.
    L. 102-325, title XI, Sec. 1101, July 23, 1992, 106 Stat. 787,
    authorized appropriations for urban community service program. See
    section 1139h of this title.

-End-


-CITE-
    20 USC subpart 4 - general provisions                       01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 4 - general provisions

-HEAD-
                      SUBPART 4 - GENERAL PROVISIONS                  

-End-



-CITE-
    20 USC Sec. 1137                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part A - Graduate Education Programs
    subpart 4 - general provisions

-HEAD-
    Sec. 1137. Administrative provisions for subparts 1, 2, and 3

-STATUTE-
    (a) Coordinated administration
      In carrying out the purpose described in section 1133(1) of this
    title, the Secretary shall provide for coordinated administration
    and regulation of graduate programs assisted under subparts 1, 2,
    and 3 of this part with other Federal programs providing assistance
    for graduate education in order to minimize duplication and improve
    efficiency to ensure that the programs are carried out in a manner
    most compatible with academic practices and with the standard
    timetables for applications for, and notifications of acceptance
    to, graduate programs.
    (b) Hiring authority
      For purposes of carrying out subparts 1, 2, and 3 of this part,
    the Secretary shall appoint, without regard to the provisions of
    title 5 that govern appointments in the competitive service, such
    administrative and technical employees, with the appropriate
    educational background, as shall be needed to assist in the
    administration of such parts (!1). The employees shall 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.

    (c) Use for religious purposes prohibited
      No institutional payment or allowance under section 1134b(b) or
    1135d(a) of this title shall be paid to a school or department of
    divinity as a result of the award of a fellowship under subpart 1
    or 2 of this part, respectively, to an individual who is studying
    for a religious vocation.
    (d) Evaluation
      The Secretary shall evaluate the success of assistance provided
    to individuals under subpart 1, 2, or 3 of this part with respect
    to graduating from their degree programs, and placement in faculty
    and professional positions.
    (e) Continuation awards
      The Secretary, using funds appropriated to carry out subparts 1
    and 2 of this part, and before awarding any assistance under such
    parts (!1) to a recipient that did not receive assistance under
    part C or D of title IX (as such parts were in effect prior to
    October 7, 1998) shall continue to provide funding to recipients of
    assistance under such part C or D (as so in effect), as the case
    may be, pursuant to any multiyear award of such assistance.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 731, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1795.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The provisions of title 5 governing appointments in the
    competitive service, referred to in subsec. (b), are classified to
    section 3301 et seq. of Title 5, Government Organization and
    Employees.
      Parts C and D of title IX (as such parts were in effect prior to
    October 7, 1998), referred to in subsec. (e), means parts C and D
    of title IX of the Higher Education Act of 1965, as added by Pub.
    L. 99-498, title IX, Sec. 901(a), Oct. 17, 1986, 100 Stat. 1552, as
    amended, which were classified generally to parts C (Sec. 1134h et
    seq.) and D (Sec. 1134l et seq.), respectively, of subchapter IX of
    this chapter prior to repeal by Pub. L. 105-244, Sec. 3, title VII,
    Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803, effective Oct. 1,
    1998.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1137, Pub. L. 89-329, title XI, Sec. 1121, as
    added Pub. L. 102-325, title XI, Sec. 1101, July 23, 1992, 106
    Stat. 788, related to purpose of innovative projects for community
    service program, prior to repeal by Pub. L. 105-244, Sec. 3, title
    VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803, effective Oct.
    1, 1998.
      Another prior section 1137, Pub. L. 89-329, title XI, Sec. 1111,
    as added Pub. L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100
    Stat. 1570, related to the purpose of urban community service
    program, prior to the general amendment of subchapter XI of this
    chapter by Pub. L. 102-325.
      A prior section 731 of Pub. L. 89-329 was classified to section
    1132d of this title, prior to the general amendment of this
    subchapter by Pub. L. 105-244.
      Another prior section 731 of Pub. L. 89-329 was classified to
    section 1132d of this title, prior to the general amendment of part
    C of this subchapter by Pub. L. 102-325.
      Another prior section 731 of Pub. L. 89-329 was classified to
    section 1132d of this title, prior to the general amendment of this
    subchapter by Pub. L. 99-498.
      A prior section 1137a, Pub. L. 89-329, title XI, Sec. 1122, as
    added Pub. L. 102-325, title XI, Sec. 1101, July 23, 1992, 106
    Stat. 788; amended Pub. L. 103-82, title I, Sec. 111(b)(4), Sept.
    21, 1993, 107 Stat. 860, authorized program for innovative projects
    for community service, prior to repeal by Pub. L. 105-244, Sec. 3,
    title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803, effective
    Oct. 1, 1998.
      Another prior section 1137a and prior section 1137b were omitted
    in the general amendment of subchapter XI of this chapter by Pub.
    L. 102-325.
      Section 1137a, Pub. L. 89-329, title XI, Sec. 1112, as added Pub.
    L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100 Stat. 1570,
    related to use of urban community service funds.
      Section 1137b, Pub. L. 89-329, title XI, Sec. 1113, as added Pub.
    L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100 Stat. 1570,
    related to contents for applications for urban community services
    projects.

-FOOTNOTE-
    (!1) So in original. Probably should be "subparts".


-End-


-CITE-
    20 USC Part B - Fund for the Improvement of Postsecondary
                     Education                             01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part B - Fund for the Improvement of Postsecondary Education

-HEAD-
       PART B - FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION   

-End-



-CITE-
    20 USC Sec. 1138                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part B - Fund for the Improvement of Postsecondary Education

-HEAD-
    Sec. 1138. Fund for the Improvement of Postsecondary Education

-STATUTE-
    (a) Authority
      The Secretary is authorized to make grants to, or enter into
    contracts with, institutions of higher education, combinations of
    such institutions, and other public and private nonprofit
    institutions and agencies, to enable such institutions,
    combinations, and agencies to improve postsecondary education
    opportunities by - 
        (1) encouraging the reform, innovation, and improvement of
      postsecondary education, and providing equal educational
      opportunity for all;
        (2) the creation of institutions, programs, and joint efforts
      involving paths to career and professional training, and
      combinations of academic and experiential learning;
        (3) the establishment of institutions and programs based on the
      technology of communications;
        (4) the carrying out, in postsecondary educational
      institutions, of changes in internal structure and operations
      designed to clarify institutional priorities and purposes;
        (5) the design and introduction of cost-effective methods of
      instruction and operation;
        (6) the introduction of institutional reforms designed to
      expand individual opportunities for entering and reentering
      institutions and pursuing programs of study tailored to
      individual needs;
        (7) the introduction of reforms in graduate education, in the
      structure of academic professions, and in the recruitment and
      retention of faculties; and
        (8) the creation of new institutions and programs for examining
      and awarding credentials to individuals, and the introduction of
      reforms in current institutional practices related thereto.
    (b) Planning grants
      The Secretary is authorized to make planning grants to
    institutions of higher education for the development and testing of
    innovative techniques in postsecondary education. Such grants shall
    not exceed $20,000.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 741, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1796.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section 1135
    of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1138, Pub. L. 89-329, title XI, Sec. 1141, as
    added Pub. L. 102-325, title XI, Sec. 1101, July 23, 1992, 106
    Stat. 788, related to purpose to assist development of student
    literacy corps and student mentoring corps programs, prior to
    repeal by Pub. L. 105-244, Sec. 3, title VII, Sec. 702, Oct. 7,
    1998, 112 Stat. 1585, 1803, effective Oct. 1, 1998.
      Another prior section 1138, Pub. L. 89-329, title XI, Sec. 1121,
    as added Pub. L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100
    Stat. 1571, related to administrative provisions, prior to the
    general amendment of subchapter XI of this chapter by Pub. L. 102-
    325.
      A prior section 741 of Pub. L. 89-329 was classified to section
    1132e of this title, prior to repeal by Pub. L. 102-325.
      Another prior section 741 of Pub. L. 89-329 was classified to
    section 1132e of this title, prior to the general amendment of this
    subchapter by Pub. L. 99-498.
      Another prior section 741 of Pub. L. 89-329 was classified to
    section 1132c of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1138a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part B - Fund for the Improvement of Postsecondary Education

-HEAD-
    Sec. 1138a. National Board of the Fund for the Improvement of
      Postsecondary Education

-STATUTE-
    (a) Establishment
      There is established a National Board of the Fund for the
    Improvement of Postsecondary Education (in this part referred to as
    the "Board"). The Board shall consist of 15 members appointed by
    the Secretary for overlapping 3-year terms. A majority of the Board
    shall constitute a quorum. Any member of the Board who has served
    for 6 consecutive years shall thereafter be ineligible for
    appointment to the Board during a 2-year period following the
    expiration of such sixth year.
    (b) Membership
      (1) In general
        The Secretary shall designate one of the members of the Board
      as Chairperson of the Board. A majority of the members of the
      Board shall be public interest representatives, including
      students, and a minority shall be educational representatives.
      All members selected shall be individuals able to contribute an
      important perspective on priorities for improvement in
      postsecondary education and strategies of educational and
      institutional change.
      (2) Appointment of Director
        The Secretary shall appoint the Director of the Fund for the
      Improvement of Postsecondary Education (hereafter in this part
      referred to as the "Director").
    (c) Duties
      The Board shall - 
        (1) advise the Secretary and the Director on priorities for the
      improvement of postsecondary education and make such
      recommendations as the Board may deem appropriate for the
      improvement of postsecondary education and for the evaluation,
      dissemination, and adaptation of demonstrated improvements in
      postsecondary educational practice;
        (2) advise the Secretary and the Director on the operation of
      the Fund for the Improvement of Postsecondary Education,
      including advice on planning documents, guidelines, and
      procedures for grant competitions prepared by the Fund; and
        (3) meet at the call of the Chairperson, except that the Board
      shall meet whenever one-third or more of the members request in
      writing that a meeting be held.
    (d) Information and assistance
      The Director shall make available to the Board such information
    and assistance as may be necessary to enable the Board to carry out
    its functions.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 742, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1797.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1135a of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1138a, Pub. L. 89-329, title XI, Sec. 1142, as
    added Pub. L. 102-325, title XI, Sec. 1101, July 23, 1992, 106
    Stat. 789; amended Pub. L. 103-208, Sec. 2(j)(47), Dec. 20, 1993,
    107 Stat. 2485, authorized grants for student literacy corps and
    student mentoring corps programs, prior to repeal by Pub. L. 105-
    244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585,
    1803, effective Oct. 1, 1998.
      Another prior section 1138a, Pub. L. 89-329, title XI, Sec. 1122,
    as added Pub. L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100
    Stat. 1571, authorized appropriations to carry out parts A and B of
    subchapter XI of this chapter, prior to the general amendment of
    such subchapter by Pub. L. 102-325.
      A prior section 742 of Pub. L. 89-329 was classified to section
    1132e-1 of this title, prior to the general amendment of this
    subchapter by Pub. L. 99-498.
      Another prior section 742 of Pub. L. 89-329 was classified to
    section 1132c-1 of this title, prior to the general amendment of
    this subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1138b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part B - Fund for the Improvement of Postsecondary Education

-HEAD-
    Sec. 1138b. Administrative provisions

-STATUTE-
    (a) Technical employees
      The Secretary may appoint, for terms not to exceed 3 years,
    without regard to the provisions of title 5 governing appointments
    in the competitive service, not more than 7 technical employees to
    administer 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
      The Director shall establish procedures for reviewing and
    evaluating grants and contracts made or entered into under this
    part. Procedures for reviewing grant applications or contracts for
    financial assistance under this section may not be subject to any
    review outside of officials responsible for the administration of
    the Fund for the Improvement of Postsecondary Education.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 743, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1797.)

-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.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1135a-1 of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1138b, Pub. L. 89-329, title XI, Sec. 1143, as
    added Pub. L. 102-325, title XI, Sec. 1101, July 23, 1992, 106
    Stat. 789, related to use of funds, prior to repeal by Pub. L. 105-
    244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585,
    1803, effective Oct. 1, 1998.
      Another prior section 1138b, Pub. L. 89-329, title XI, Sec. 1123,
    as added Pub. L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100
    Stat. 1571, defined terms, prior to the general amendment of
    subchapter XI of this chapter by Pub. L. 102-325.
      A prior section 743 of Pub. L. 89-329 was classified to section
    1132c-2 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1138c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part B - Fund for the Improvement of Postsecondary Education

-HEAD-
    Sec. 1138c. Special projects

-STATUTE-
    (a) Grant authority
      The Director is authorized to make grants to institutions of
    higher education, or consortia thereof, and such other public
    agencies and nonprofit organizations as the Director deems
    necessary for innovative projects concerning one or more areas of
    particular national need identified by the Director.
    (b) Application
      No grant shall be made under this part unless an application is
    made at such time, in such manner, and contains or is accompanied
    by such information as the Secretary may require.
    (c) Areas of national need
      Areas of national need shall initially include, but shall not be
    limited to, the following:
        (1) Institutional restructuring to improve learning and promote
      productivity, efficiency, quality improvement, and cost and price
      control.
        (2) Articulation between 2- and 4-year institutions of higher
      education, including developing innovative methods for ensuring
      the successful transfer of students from 2- to 4-year
      institutions of higher education.
        (3) Evaluation and dissemination of model programs.
        (4) International cooperation and student exchange among
      postsecondary educational institutions.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 744, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1798.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1135a-11 of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1138c, Pub. L. 89-329, title XI, Sec. 1144, as
    added Pub. L. 102-325, title XI, Sec. 1101, July 23, 1992, 106
    Stat. 789; amended Pub. L. 103-382, title III, Sec. 391(e)(10),
    Oct. 20, 1994, 108 Stat. 4023, related to applications for grants,
    prior to repeal by Pub. L. 105-244, Sec. 3, title VII, Sec. 702,
    Oct. 7, 1998, 112 Stat. 1585, 1803, effective Oct. 1, 1998.
      A prior section 744 of Pub. L. 89-329 was classified to section
    1132c-3 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1138d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part B - Fund for the Improvement of Postsecondary Education

-HEAD-
    Sec. 1138d. Authorization of appropriations

-STATUTE-
      There are authorized to be appropriated to carry out this part
    $30,000,000 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 VII, Sec. 745, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1798.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1138d, Pub. L. 89-329, title XI, Sec. 1145, as
    added Pub. L. 102-325, title XI, Sec. 1101, July 23, 1992, 106
    Stat. 791, related to technical assistance and coordination
    contract, prior to repeal by Pub. L. 105-244, Sec. 3, title VII,
    Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803, effective Oct. 1,
    1998.
      A prior section 745 of Pub. L. 89-329 was classified to section
    1132c-4 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      A prior section 1138e, Pub. L. 89-329, title XI, Sec. 1146, as
    added Pub. L. 102-325, title XI, Sec. 1101, July 23, 1992, 106
    Stat. 791, defined terms "institution of higher education" and
    "public community agency", prior to repeal by Pub. L. 105-244, Sec.
    3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585, 1803,
    effective Oct. 1, 1998.

-End-


-CITE-
    20 USC Part C - Urban Community Service                     01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part C - Urban Community Service

-HEAD-
                     PART C - URBAN COMMUNITY SERVICE                 

-End-



-CITE-
    20 USC Sec. 1139                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part C - Urban Community Service

-HEAD-
    Sec. 1139. Findings

-STATUTE-
      The Congress finds that - 
        (1) the Nation's urban centers are facing increasingly pressing
      problems and needs in the areas of economic development,
      community infrastructure and service, social policy, public
      health, housing, crime, education, environmental concerns,
      planning and work force preparation;
        (2) there are, in the Nation's urban institutions, people with
      underutilized skills, knowledge, and experience who are capable
      of providing a vast range of services toward the amelioration of
      the problems described in paragraph (1);
        (3) the skills, knowledge and experience in these urban
      institutions, if applied in a systematic and sustained manner,
      can make a significant contribution to the solution of such
      problems; and
        (4) the application of such skills, knowledge and experience is
      hindered by the limited funds available to redirect attention to
      solutions to such urban problems.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 751, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1798.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section 1136
    of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1139, Pub. L. 89-329, title XI, Sec. 1151, as
    added Pub. L. 102-325, title XI, Sec. 1101, July 23, 1992, 106
    Stat. 792, authorized appropriations for the innovative projects
    for community service program, student literacy corps program, and
    student mentoring corps program, prior to repeal by Pub. L. 105-
    244, Sec. 3, title VII, Sec. 702, Oct. 7, 1998, 112 Stat. 1585,
    1803, effective Oct. 1, 1998.
      Another prior section 1139, Pub. L. 89-329, title XI, Sec. 1131,
    as added Pub. L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100
    Stat. 1572, stated purpose of providing assistance to establish
    Robert F. Wagner, Sr., Institute of Urban Public Policy, prior to
    the general amendment of subchapter XI of this chapter by Pub. L.
    102-325.
      A prior section 751 of Pub. L. 89-329 was classified to section
    1132f of this title, prior to repeal by Pub. L. 104-208.

-End-



-CITE-
    20 USC Sec. 1139a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part C - Urban Community Service

-HEAD-
    Sec. 1139a. Purpose; program authorized

-STATUTE-
    (a) Purpose
      It is the purpose of this part to provide incentives to urban
    academic institutions to enable such institutions to work with
    private and civic organizations to devise and implement solutions
    to pressing and severe problems in their communities.
    (b) Program authorized
      The Secretary is authorized to carry out a program of providing
    assistance to eligible institutions to enable such institutions to
    carry out the activities described in section 1139c of this title
    in accordance with the provisions of this part.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 752, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1798.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1136a of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1139a, Pub. L. 89-329, title XI, Sec. 1132, as
    added Pub. L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100 Stat.
    1572, related to application for and use of funds, prior to the
    general amendment of subchapter XI of this chapter by Pub. L. 102-
    325.
      A prior section 752 of Pub. L. 89-329 was classified to section
    1132f-1 of this title, prior to repeal by Pub. L. 104-208.

-End-



-CITE-
    20 USC Sec. 1139b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part C - Urban Community Service

-HEAD-
    Sec. 1139b. Application for urban community service grants

-STATUTE-
    (a) Application
      (1) In general
        An eligible institution seeking assistance under this part
      shall submit to the Secretary an application at such time, in
      such form, and containing or accompanied by such information and
      assurances as the Secretary may require by regulation.
      (2) Contents
        Each application submitted pursuant to paragraph (1) shall - 
          (A) describe the activities and services for which assistance
        is sought; and
          (B) include a plan that is agreed to by the members of a
        consortium that includes, in addition to the eligible
        institution, one or more of the following entities:
            (i) A community college.
            (ii) An urban school system.
            (iii) A local government.
            (iv) A business or other employer.
            (v) A nonprofit institution.
      (3) Waiver
        The Secretary may waive the consortium requirements described
      in paragraph (2) for any applicant who can demonstrate to the
      satisfaction of the Secretary that the applicant has devised an
      integrated and coordinated plan which meets the purpose of this
      part.
    (b) Priority in selection of applications
      The Secretary shall give priority to applications that propose to
    conduct joint projects supported by other local, State, and Federal
    programs. In addition, the Secretary shall give priority to
    eligible institutions submitting applications that demonstrate the
    eligible institution's commitment to urban community service.
    (c) Selection procedures
      The Secretary shall, by regulation, develop a formal procedure
    for the submission of applications under this part and shall
    publish in the Federal Register an announcement of that procedure
    and the availability of funds under this part.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 753, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1799.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1136b of this title, prior to repeal by Pub. L. 105-244.
      A prior section 1139b, Pub. L. 89-329, title XI, Sec. 1133, as
    added Pub. L. 99-498, title XI, Sec. 1101, Oct. 17, 1986, 100 Stat.
    1573, authorized appropriations, prior to the general amendment of
    subchapter XI of this chapter by Pub. L. 102-325.
      A prior section 753 of Pub. L. 89-329 was classified to section
    1132f-2 of this title, prior to repeal by Pub. L. 104-208.

-End-



-CITE-
    20 USC Sec. 1139c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part C - Urban Community Service

-HEAD-
    Sec. 1139c. Allowable activities

-STATUTE-
      Funds made available under this part shall be used to support
    planning, applied research, training, resource exchanges or
    technology transfers, the delivery of services, or other activities
    the purpose of which is to design and implement programs to assist
    urban communities to meet and address their pressing and severe
    problems, such as the following:
        (1) Work force preparation.
        (2) Urban poverty and the alleviation of such poverty.
        (3) Health care, including delivery and access.
        (4) Underperforming school systems and students.
        (5) Problems faced by the elderly and individuals with
      disabilities in urban settings.
        (6) Problems faced by families and children.
        (7) Campus and community crime prevention, including enhanced
      security and safety awareness measures as well as coordinated
      programs addressing the root causes of crime.
        (8) Urban housing.
        (9) Urban infrastructure.
        (10) Economic development.
        (11) Urban environmental concerns.
        (12) Other problem areas which participants in the consortium
      described in section 1139b(a)(2)(B) of this title concur are of
      high priority in the urban area.
        (13)(A) Problems faced by individuals with disabilities
      regarding accessibility to institutions of higher education and
      other public and private community facilities.
        (B) Amelioration of existing attitudinal barriers that prevent
      full inclusion by individuals with disabilities in their
      community.
        (14) Improving access to technology in local communities.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 754, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1799.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1136c of this title, prior to repeal by Pub. L. 105-244.
      A prior section 754 of Pub. L. 89-329 was classified to section
    1132f-3 of this title, prior to repeal by Pub. L. 104-208.

-End-



-CITE-
    20 USC Sec. 1139d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part C - Urban Community Service

-HEAD-
    Sec. 1139d. Peer review

-STATUTE-
      The Secretary shall designate a peer review panel to review
    applications submitted under this part and make recommendations for
    funding to the Secretary. In selecting the peer review panel, the
    Secretary may consult with other appropriate Cabinet-level
    officials and with non-Federal organizations, to ensure that the
    panel will be geographically balanced and be composed of
    representatives from public and private institutions of higher
    education, labor, business, and State and local government, who
    have expertise in urban community service or in education.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 755, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1800.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1136d of this title, prior to repeal by Pub. L. 105-244.
      A prior section 755 of Pub. L. 89-329 was classified to section
    1132f-4 of this title, prior to repeal by Pub. L. 104-208.

-End-



-CITE-
    20 USC Sec. 1139e                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part C - Urban Community Service

-HEAD-
    Sec. 1139e. Disbursement of funds

-STATUTE-
    (a) Multiyear availability
      Subject to the availability of appropriations, grants under this
    part may be made on a multiyear basis, except that no institution,
    individually or as a participant in a consortium of such
    institutions, may receive such a grant for more than 5 years.
    (b) Equitable geographic distribution
      The Secretary shall award grants under this part in a manner that
    achieves an equitable geographic distribution of such grants.
    (c) Matching requirement
      An applicant under this part and the local governments associated
    with the application shall contribute to the conduct of the program
    supported by the grant an amount from non-Federal funds equal to at
    least one-fourth of the amount of the grant, which contribution may
    be in cash or in kind.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 756, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1800.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1136e of this title, prior to repeal by Pub. L. 105-244.
      A prior section 756 of Pub. L. 89-329 was classified to section
    1132f-5 of this title, prior to repeal by Pub. L. 104-208.

-End-



-CITE-
    20 USC Sec. 1139f                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part C - Urban Community Service

-HEAD-
    Sec. 1139f. Designation of Urban Grant Institutions

-STATUTE-
      The Secretary shall publish a list of eligible institutions under
    this part and shall designate these institutions of higher
    education as "Urban Grant Institutions". The Secretary shall
    establish a national network of Urban Grant Institutions so that
    the results of individual projects achieved in one metropolitan
    area can then be generalized, disseminated, replicated, and applied
    throughout the Nation. The information developed as a result of
    this section shall be made available to Urban Grant Institutions
    and to any other interested institution of higher education by any
    appropriate means.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 757, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1800.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1136f of this title, prior to repeal by Pub. L. 105-244.
      A prior section 757 of Pub. L. 89-329 was classified to section
    1132f-6 of this title, prior to repeal by Pub. L. 104-208.

-End-



-CITE-
    20 USC Sec. 1139g                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part C - Urban Community Service

-HEAD-
    Sec. 1139g. Definitions

-STATUTE-
      As used in this part:
      (1) Urban area
        The term "urban area" means a metropolitan statistical area
      having a population of not less than 350,000, or two contiguous
      metropolitan statistical areas having a population of not less
      than 350,000, or, in any State which does not have a metropolitan
      statistical area which has such a population, the eligible entity
      in the State submitting an application under section 1139b of
      this title, or, if no such entity submits an application, the
      Secretary, shall designate one urban area for the purposes of
      this part.
      (2) Eligible institution
        The term "eligible institution" means - 
          (A) a nonprofit municipal university, established by the
        governing body of the city in which it is located, and
        operating as of July 23, 1992, under that authority; or
          (B) an institution of higher education, or a consortium of
        such institutions any one of which meets all of the
        requirements of this paragraph, which - 
            (i) is located in an urban area;
            (ii) draws a substantial portion of its undergraduate
          students from the urban area in which such institution is
          located, or from contiguous areas;
            (iii) carries out programs to make postsecondary
          educational opportunities more accessible to residents of
          such urban area, or contiguous areas;
            (iv) has the present capacity to provide resources
          responsive to the needs and priorities of such urban area and
          contiguous areas;
            (v) offers a range of professional, technical, or graduate
          programs sufficient to sustain the capacity of such
          institution to provide such resources; and
            (vi) has demonstrated and sustained a sense of
          responsibility to such urban area and contiguous areas and
          the people of such areas.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 758, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1801.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1136g of this title, prior to repeal by Pub. L. 105-244.
      A prior section 758 of Pub. L. 89-329 was classified to section
    1132f-7 of this title, prior to repeal by Pub. L. 104-208.

-End-



-CITE-
    20 USC Sec. 1139h                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part C - Urban Community Service

-HEAD-
    Sec. 1139h. Authorization of appropriations

-STATUTE-
      There are authorized to be appropriated $20,000,000 for fiscal
    year 1999 and such sums as may be necessary for each of the 4
    succeeding fiscal years to carry out this part.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 759, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1801.)


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to this section were contained in section
    1136h of this title, prior to repeal by Pub. L. 105-244.
      A prior section 759 of Pub. L. 89-329 was classified to section
    1132f-8 of this title, prior to repeal by Pub. L. 104-208.

-End-


-CITE-
    20 USC Part D - Demonstration Projects To Ensure Students
                     With Disabilities Receive a Quality
                     Higher Education                      01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part D - Demonstration Projects To Ensure Students With Disabilities
              Receive a Quality Higher Education      

-HEAD-
          PART D - DEMONSTRATION PROJECTS TO ENSURE STUDENTS WITH
              DISABILITIES RECEIVE A QUALITY HIGHER EDUCATION

-End-



-CITE-
    20 USC Sec. 1140                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part D - Demonstration Projects To Ensure Students With Disabilities
              Receive a Quality Higher Education      

-HEAD-
    Sec. 1140. Purposes

-STATUTE-
      It is the purpose of this part to support model demonstration
    projects to provide technical assistance or professional
    development for faculty and administrators in institutions of
    higher education in order to provide students with disabilities a
    quality postsecondary education.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 761, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1801.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 761 of Pub. L. 89-329 was classified to section
    1132g of this title, prior to repeal by Pub. L. 102-325.
      Another prior section 761 of Pub. L. 89-329 was classified to
    section 1132d of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1140a                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part D - Demonstration Projects To Ensure Students With Disabilities
              Receive a Quality Higher Education      

-HEAD-
    Sec. 1140a. Grants authorized

-STATUTE-
    (a) Competitive grants authorized
      The Secretary may award grants, contracts, and cooperative
    agreements, on a competitive basis, to institutions of higher
    education, of which at least two such grants shall be awarded to
    institutions that provide professional development and technical
    assistance in order for students with learning disabilities to
    receive a quality postsecondary education.
    (b) Duration; activities
      (1) Duration
        Grants under this part shall be awarded for a period of 3
      years.
      (2) Authorized activities
        Grants under this part shall be used to carry out one or more
      of the following activities:
        (A) Teaching methods and strategies
          The development of innovative, effective, and efficient
        teaching methods and strategies to provide faculty and
        administrators with the skills and supports necessary to teach
        students with disabilities. Such methods and strategies may
        include inservice training, professional development,
        customized and general technical assistance, workshops, summer
        institutes, distance learning, and training in the use of
        assistive and educational technology.
        (B) Synthesizing research and information
          Synthesizing research and other information related to the
        provision of postsecondary educational services to students
        with disabilities.
        (C) Professional development and training sessions
          Conducting professional development and training sessions for
        faculty and administrators from other institutions of higher
        education to enable the faculty and administrators to meet the
        postsecondary educational needs of students with disabilities.
      (3) Mandatory evaluation and dissemination
        Grants under this part shall be used for evaluation, and
      dissemination to other institutions of higher education, of the
      information obtained through the activities described in
      subparagraphs (A) through (C).(!1)

    (c) Considerations in making awards
      In awarding grants, contracts, or cooperative agreements under
    this section, the Secretary shall consider the following:
      (1) Geographic distribution
        Providing an equitable geographic distribution of such grants.
      (2) Rural and urban areas
        Distributing such grants to urban and rural areas.
      (3) Range and type of institution
        Ensuring that the activities to be assisted are developed for a
      range of types and sizes of institutions of higher education.
      (4) Prior experience or exceptional programs
        Institutions of higher education with demonstrated prior
      experience in, or exceptional programs for, meeting the
      postsecondary educational needs of students with disabilities.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 762, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1801.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 762 of Pub. L. 89-329 was classified to section
    1132g-1 of this title, prior to repeal by Pub. L. 102-325.
      Another prior section 762 of Pub. L. 89-329 was classified to
    section 1132d-1 of this title, prior to the general amendment of
    this subchapter by Pub. L. 96-374.

-FOOTNOTE-               

    (!1) So in original. Probably should refer to subparagraphs (A)
         through (C) of paragraph (2).


-End-



-CITE-
    20 USC Sec. 1140b                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part D - Demonstration Projects To Ensure Students With Disabilities
              Receive a Quality Higher Education      

-HEAD-
    Sec. 1140b. Applications

-STATUTE-
      Each institution of higher education desiring to receive a grant,
    contract, or cooperative agreement under this part 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 include - 
        (1) a description of how such institution plans to address each
      of the activities required under this part;
        (2) a description of how the institution consulted with a broad
      range of people within the institution to develop activities for
      which assistance is sought; and
        (3) a description of how the institution will coordinate and
      collaborate with the office that provides services to students
      with disabilities within the institution.

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 763, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1802.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 763 of Pub. L. 89-329 was classified to section
    1132g-2 of this title, prior to repeal by Pub. L. 102-325.
      Another prior section 763 of Pub. L. 89-329 was classified to
    section 1132d-2 of this title, prior to the general amendment of
    this subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1140c                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part D - Demonstration Projects To Ensure Students With Disabilities
              Receive a Quality Higher Education      

-HEAD-
    Sec. 1140c. Rule of construction

-STATUTE-
      Nothing in this part shall be construed to impose any additional
    duty, obligation, or responsibility on an institution of higher
    education or on the institution's faculty, administrators, or staff
    than are required by section 794 of title 29 and the Americans with
    Disabilities Act of 1990 [42 U.S.C. 12101 et seq.].

-SOURCE-
    (Pub. L. 89-329, title VII, Sec. 764, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1803.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Americans with Disabilities Act of 1990, referred to in text,
    is Pub. L. 101-336, July 26, 1990, 104 Stat. 327, as amended, which
    is classified principally to chapter 126 (Sec. 12101 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 12101 of Title 42 and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 764 of Pub. L. 89-329 was classified to section
    1132g-3 of this title, prior to repeal by Pub. L. 102-325.
      Another prior section 764 of Pub. L. 89-329 was classified to
    section 1132d-3 of this title, prior to the general amendment of
    this subchapter by Pub. L. 96-374.

-End-



-CITE-
    20 USC Sec. 1140d                                           01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VII - GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
    Part D - Demonstration Projects To Ensure Students With Disabilities
              Receive a Quality Higher Education      

-HEAD-
    Sec. 1140d. Authorization of appropriations

-STATUTE-
      There are authorized to be appropriated for this part $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 VII, Sec. 765, as added Pub. L. 105-244,
    title VII, Sec. 701, Oct. 7, 1998, 112 Stat. 1803.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 765 of Pub. L. 89-329 was classified to section
    1132d-4 of this title, prior to the general amendment of this
    subchapter by Pub. L. 96-374.
      Prior sections 1141 and 1142 were repealed by Pub. L. 105-244,
    Sec. 3, title I, Sec. 101(b), title VII, Sec. 702, Oct. 7, 1998,
    112 Stat. 1585, 1616, 1803, effective Oct. 1, 1998.
      Section 1141, Pub. L. 89-329, title XII, Sec. 1201, formerly
    title VIII, Sec. 801, Nov. 8, 1965, 79 Stat. 1269; renumbered title
    XII, Sec. 1201, and amended Pub. L. 90-575, title II, Secs. 251,
    293, 294, Oct. 16, 1968, 82 Stat. 1042, 1050, 1051; Pub. L. 91-230,
    title VIII, Sec. 806(b), Apr. 13, 1970, 84 Stat. 192; Pub. L. 92-
    318, title I, Sec. 131(d)(1), June 23, 1972, 86 Stat. 260; Pub. L.
    94-482, title I, Sec. 181(a), formerly Sec. 181, Oct. 12, 1976, 90
    Stat. 2167, renumbered Pub. L. 95-43, Sec. 1(b)(7), June 15, 1977,
    91 Stat. 218; Pub. L. 95-180, Sec. 1(a), Nov. 15, 1977, 91 Stat.
    1372; Pub. L. 96-374, title XIII, Sec. 1391(a)(1), (b), Oct. 3,
    1980, 94 Stat. 1503; Pub. L. 100-50, Sec. 21(a), June 3, 1987, 101
    Stat. 360; Pub. L. 102-26, Sec. 2(a)(4), Apr. 9, 1991, 105 Stat.
    123; Pub. L. 102-325, title XII, Sec. 1201, July 23, 1992, 106
    Stat. 792; Pub. L. 102-394, title III, Sec. 308(a), Oct. 6, 1992,
    106 Stat. 1820; Pub. L. 103-82, title I, Sec. 111(b)(5), Sept. 21,
    1993, 107 Stat. 861; Pub. L. 103-208, Sec. 2(j)(48), Dec. 20, 1993,
    107 Stat. 2485, defined terms for purposes of this chapter. See
    sections 1001 and 1003 of this title.
      Section 1142, Pub. L. 89-329, title XII, Sec. 1202, formerly Sec.
    1207, as added Pub. L. 94-482, title I, Sec. 182, Oct. 12, 1976, 90
    Stat. 2167; renumbered Sec. 1202, Pub. L. 96-374, title XII, Sec.
    1201, Oct. 3, 1980, 94 Stat. 1493; amended Pub. L. 102-325, title
    XII, Sec. 1202, July 23, 1992, 106 Stat. 793, related to
    antidiscrimination requirements for institutions of higher
    education receiving Federal assistance. See section 1011 of this
    title.
      Another prior section 1142, Pub. L. 89-329, title XII, Sec. 1202,
    formerly title VIII, Sec. 802, Nov. 8, 1965, 79 Stat. 1270;
    renumbered title XII, Sec. 1202, Pub. L. 90-575, title II, Sec.
    251, Oct. 16, 1968, 82 Stat. 1042, related to method of payment
    pursuant to grants, loans, or contracts under this chapter, prior
    to repeal by section 1201 of Pub. L. 96-374.
      Prior sections 1142a and 1142b were repealed by Pub. L. 96-374,
    title XII, Sec. 1201, title XIII, Sec. 1393(a), Oct. 3, 1980, 94
    Stat. 1493, 1504, effective Oct. 1, 1980.
      Section 1142a, Pub. L. 89-329, title XII, Sec. 1202, as added
    Pub. L. 92-318, title I, Sec. 196, June 23, 1972, 86 Stat. 324,
    related to designation of a State postsecondary education
    commission.
      Section 1142b, Pub. L. 89-329, title XII, Sec. 1203, as added
    Pub. L. 92-318, title I, Sec. 196, June 23, 1972, 86 Stat. 325;
    amended Pub. L. 94-482, title I, Sec. 179, Oct. 12, 1976, 90 Stat.
    2166; Pub. L. 96-49, Sec. 12, Aug. 13, 1979, 93 Stat. 354, related
    to comprehensive statewide planning.
      Prior sections 1143 to 1145g were repealed by Pub. L. 105-244,
    Sec. 3, title I, Sec. 101(b), title VII, Sec. 702, Oct. 7, 1998,
    112 Stat. 1585, 1616, 1803, effective Oct. 1, 1998.
      Section 1143, Pub. L. 89-329, title XII, Sec. 1203, as added Pub.
    L. 96-374, title XII, Sec. 1201, Oct. 3, 1980, 94 Stat. 1493,
    related to State agreements.
      Another prior section 1143, Pub. L. 89-329, title XII, Sec. 1203,
    formerly title VIII, Sec. 803, Nov. 8, 1965, 79 Stat. 1270;
    renumbered title XII, Sec. 1203, Pub. L. 90-575, title II, Sec.
    251, Oct. 16, 1968, 82 Stat. 1042, provided for delegation of
    functions by Commissioner of Education and utilization of services
    and facilities of other agencies, prior to repeal by Pub. L. 91-
    230, title IV, Sec. 401(c)(5), Apr. 13, 1970, 84 Stat. 173.
      Section 1144, Pub. L. 89-329, title XII, Sec. 1204, formerly
    title VIII, Sec. 804, Nov. 8, 1965, 79 Stat. 1270; renumbered title
    XII, Sec. 1204, Pub. L. 90-575, title II, Sec. 251, Oct. 16, 1968,
    82 Stat. 1042; amended Pub. L. 91-230, title IV, Sec. 401(f)(6),
    Apr. 13, 1970, 84 Stat. 173, prohibited Federal control over
    education.
      Section 1144a, Pub. L. 89-329, title XII, Sec. 1204, as added
    Pub. L. 96-374, title XII, Sec. 1201, Oct. 3, 1980, 94 Stat. 1495;
    amended Pub. L. 99-498, title XII, Sec. 1201, Oct. 17, 1986, 100
    Stat. 1573; Pub. L. 102-73, title VIII, Sec. 801(c), July 25, 1991,
    105 Stat. 360; Pub. L. 103-208, Sec. 2(j)(49), Dec. 20, 1993, 107
    Stat. 2485, related to treatment of territories and territorial
    student assistance. See section 1011b of this title.
      Another prior section 1144a, Pub. L. 92-318, title V, Sec. 510,
    June 23, 1972, 86 Stat. 353, set forth sense of Congress that
    governing boards of institutions of higher education give
    consideration to student participation on such boards, prior to
    being omitted from the Code.
      Section 1145, Pub. L. 89-329, title XII, Sec. 1205, as added Pub.
    L. 96-374, title XII, Sec. 1201, Oct. 3, 1980, 94 Stat. 1495;
    amended Pub. L. 99-498, title XII, Sec. 1202, Oct. 17, 1986, 100
    Stat. 1573; Pub. L. 102-325, title XII, Sec. 1203, July 23, 1992,
    106 Stat. 793; Pub. L. 103-208, Sec. 2(j)(50)-(53), Dec. 20, 1993,
    107 Stat. 2485, related to National Advisory Committee on
    Institutional Quality and Integrity. See section 1011c of this
    title.
      Another prior section 1145, Pub. L. 89-329, title XII, Sec. 1205,
    as added Pub. L. 90-575, title II, Sec. 291(a), Oct. 16, 1968, 82
    Stat. 1049; amended Pub. L. 91-230, title IV, Sec. 401(h)(4), Apr.
    13, 1970, 84 Stat. 174, established an Advisory Council on Graduate
    Education in the Office of Education, prior to repeal by section
    1201 of Pub. L. 96-374.
      Section 1145a, Pub. L. 89-329, title XII, Sec. 1206, as added
    Pub. L. 99-498, title XII, Sec. 1203, Oct. 17, 1986, 100 Stat.
    1573, related to Commission to study postsecondary institutional
    and programmatic recognition process.
      Another prior section 1145a, Pub. L. 89-329, title XII, Sec.
    1206, as added Pub. L. 92-318, title I, Sec. 197, June 23, 1972, 86
    Stat. 325, related to supplying cost-of-education data by
    institutions of higher education, prior to repeal by Pub. L. 96-
    374, title XII, Sec. 1201, Oct. 3, 1980, 94 Stat. 1493, eff. Oct.
    1, 1980.
      Section 1145b, Pub. L. 89-329, title XII, Sec. 1207, as added
    Pub. L. 99-498, title XII, Sec. 1204, Oct. 17, 1986, 100 Stat.
    1576, related to student representation in connection with
    administration of this chapter. See section 1011d of this title.
      Another prior section 1145b, Pub. L. 89-329, title XII, Sec.
    1202, formerly Sec. 1207, as added Pub. L. 94-482, title I, Sec.
    182, Oct. 12, 1976, 90 Stat. 2167; renumbered title XII, Sec. 1202,
    Pub. L. 96-374, title XII, Sec. 1201, Oct. 3, 1980, 94 Stat. 1493,
    which related to antidiscrimination requirements for institutions
    of higher education receiving Federal assistance, was transferred
    to section 1142 of this title and subsequently repealed by Pub. L.
    105-244.
      Section 1145c, Pub. L. 89-329, title XII, Sec. 1208, as added
    Pub. L. 99-498, title XII, Sec. 1205, Oct. 17, 1986, 100 Stat.
    1577, related to financial responsibility of foreign students. See
    section 1011e of this title.
      Another prior section 1145c, Pub. L. 89-329, title XII, Sec.
    1208, as added Pub. L. 94-482, title I, Sec. 183, Oct. 12, 1976, 90
    Stat. 2167, related to availability of appropriations, prior to
    repeal by Pub. L. 96-374, title XII, Sec. 1201, Oct. 3, 1980, 94
    Stat. 1493, eff. Oct. 1, 1980.
      Section 1145d, Pub. L. 89-329, title XII, Sec. 1209, as added
    Pub. L. 102-325, title XII, Sec. 1204, July 23, 1992, 106 Stat.
    794; amended Pub. L. 103-208, Sec. 2(j)(54), Dec. 20, 1993, 107
    Stat. 2485, related to disclosures of foreign gifts. See section
    1011f of this title.
      Another prior section 1145d, Pub. L. 89-329, title XII, Sec.
    1209, as added Pub. L. 99-498, title XII, Sec. 1206(a), Oct. 17,
    1986, 100 Stat. 1577, related to disclosures of foreign gifts,
    prior to repeal by Pub. L. 99-498, title XII, Sec. 1206(b), Oct.
    17, 1986, 100 Stat. 1579, as amended by Pub. L. 100-50, Sec. 22(f),
    June 3, 1987, 101 Stat. 362, effective Aug. 1, 1989.
      Section 1145d-1, Pub. L. 89-329, title XII, Sec. 1210, as added
    Pub. L. 100-50, Sec. 21(b), June 3, 1987, 101 Stat. 360, related to
    application of peer review process. See section 1011g of this
    title.
      Section 1145e, Pub. L. 89-329, title XII, Sec. 1211, formerly
    Sec. 1210, as added Pub. L. 99-498, title XII, Sec. 1207, Oct. 17,
    1986, 100 Stat. 1579; renumbered Sec. 1211, Pub. L. 100-50, Sec.
    21(b), June 3, 1987, 101 Stat. 360, related to aggregate limit of
    authorization of appropriations.
      Section 1145f, Pub. L. 89-329, title XII, Sec. 1212, formerly
    Sec. 1211, as added Pub. L. 100-418, title VI, Sec. 6231, Aug. 23,
    1988, 102 Stat. 1518; renumbered Sec. 1212 and amended Pub. L. 103-
    208, Sec. 2(j)(55), (56), Dec. 20, 1993, 107 Stat. 2485, related
    to technology transfer centers.
      Section 1145g, Pub. L. 89-329, title XII, Sec. 1213, as added
    Pub. L. 101-226, Sec. 22(a)(1), Dec. 12, 1989, 103 Stat. 1938,
    related to drug and alcohol abuse prevention. See section 1011i of
    this title.
      A prior section 1145h, Pub. L. 102-325, title XV, Sec. 1541, July
    23, 1992, 106 Stat. 834; Pub. L. 103-208, Sec. 2(k)(13), Dec. 20,
    1993, 107 Stat. 2486, authorized grants for campus sexual offense
    education, prior to repeal by Pub. L. 105-332, Sec. 6(b)(3), Oct.
    31, 1998, 112 Stat. 3128.
      A prior section 1146, Pub. L. 96-374, title XIII, Sec. 1392, Oct.
    3, 1980, 94 Stat. 1504, which related to contract authority, was
    transferred to section 1154 of this title.
      Another prior section 1146, Pub. L. 89-329, title XII, Sec. 1206,
    as added Pub. L. 90-575, title II, Sec. 292, Oct. 16, 1968, 82
    Stat. 1050, provided for dissemination of information and
    authorization of $2,000,000 for fiscal year ending June 30, 1970,
    and such amount as Congress might authorize for fiscal year ending
    June 30, 1971, prior to repeal by Pub. L. 91-230, title IV, Sec.
    401(d)(5), Apr. 13, 1970, 84 Stat. 173.
      A prior section 1146a, Pub. L. 99-498, Sec. 3, Oct. 17, 1986, 100
    Stat. 1278, which provided that contracting authority be subject to
    appropriations, was transferred, and is set out as a Contracting
    Authority Subject to Appropriations note under section 1154 of this
    title.
      Prior sections 1147 to 1150, Pub. L. 89-329, title XII, Secs.
    1207-1210, as added Pub. L. 90-575, title II, Sec. 295, Oct. 16,
    1968, 82 Stat. 1051, 1052, provided for program planning and
    evaluation for higher education programs; advance funding;
    evaluation reports and Congressional review; and availability of
    appropriations on academic or school year basis, prior to repeal by
    Pub. L. 91-230, title IV, Sec. 401(b), Apr. 13, 1970, 84 Stat. 172.

-End-


-CITE-
    20 USC SUBCHAPTER VIII - MISCELLANEOUS                      01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VIII - MISCELLANEOUS

-HEAD-
                      SUBCHAPTER VIII - MISCELLANEOUS                  

-End-



-CITE-
    20 USC Sec. 1151                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VIII - MISCELLANEOUS

-HEAD-
    Sec. 1151. Grants to States for workplace and community transition
      training for incarcerated youth offenders

-STATUTE-
    (a) Findings
      Congress makes the following findings:
        (1) Over 150,000 youth offenders age 21 and younger are
      incarcerated in the Nation's jails, juvenile facilities, and
      prisons.
        (2) Most youth offenders who are incarcerated have been
      sentenced as first-time adult felons.
        (3) Approximately 75 percent of youth offenders are high school
      dropouts who lack basic literacy and life skills, have little or
      no job experience, and lack marketable skills.
        (4) The average incarcerated youth has attended school only
      through grade 10.
        (5) Most of these youths can be diverted from a life of crime
      into productive citizenship with available educational,
      vocational, work skills, and related service programs.
        (6) If not involved with educational programs while
      incarcerated, almost all of these youths will return to a life of
      crime upon release.
        (7) The average length of sentence for a youth offender is
      about 3 years. Time spent in prison provides a unique opportunity
      for education and training.
        (8) Even with quality education and training provided during
      incarceration, a period of intense supervision, support, and
      counseling is needed upon release to ensure effective
      reintegration of youth offenders into society.
        (9) Research consistently shows that the vast majority of
      incarcerated youths will not return to the public schools to
      complete their education.
        (10) There is a need for alternative educational opportunities
      during incarceration and after release.
    (b) "Youth offender" defined
      For purposes of this section, the term "youth offender" means a
    male or female offender under the age of 25, who is incarcerated in
    a State prison, including a prerelease facility.
    (c) Grant program
      The Secretary of Education (in this section referred to as the
    "Secretary") shall establish a program in accordance with this
    section to provide grants to the State correctional education
    agencies in the States, from allocations for the States under
    subsection (i) of this section, to assist and encourage
    incarcerated youths to acquire functional literacy, life, and job
    skills, through the pursuit of a postsecondary education
    certificate, or an associate of arts or bachelor's degree while in
    prison, and employment counseling and other related services which
    start during incarceration and continue through prerelease and
    while on parole.
    (d) Application
      To be eligible for a grant under this section, a State
    correctional education agency shall submit to the Secretary a
    proposal for a youth offender program that - 
        (1) identifies the scope of the problem, including the number
      of incarcerated youths in need of postsecondary education and
      vocational training;
        (2) lists the accredited public or private educational
      institution or institutions that will provide postsecondary
      educational services;
        (3) lists the cooperating agencies, public and private, or
      businesses that will provide related services, such as counseling
      in the areas of career development, substance abuse, health, and
      parenting skills;
        (4) describes the evaluation methods and performance measures
      that the State correctional education agency will employ, which
      methods and measures - 
          (A) shall be appropriate to meet the goals and objectives of
        the proposal; and
          (B) shall include measures of - 
            (i) program completion;
            (ii) student academic and vocational skill attainment;
            (iii) success in job placement and retention; and
            (iv) recidivism;

        (5) describes how the proposed programs are to be integrated
      with existing State correctional education programs (such as
      adult education, graduate education degree programs, and
      vocational training) and State industry programs;
        (6) addresses the educational needs of youth offenders who are
      in alternative programs (such as boot camps); and
        (7) describes how students will be selected so that only youth
      offenders eligible under subsection (f) of this section will be
      enrolled in postsecondary programs.
    (e) Program requirements
      Each State correctional education agency receiving a grant under
    this section shall - 
        (1) integrate activities carried out under the grant with the
      objectives and activities of the school-to-work programs of such
      State, including - 
          (A) work experience or apprenticeship programs;
          (B) transitional worksite job training for vocational
        education students that is related to the occupational goals of
        such students and closely linked to classroom and laboratory
        instruction;
          (C) placement services in occupations that the students are
        preparing to enter;
          (D) employment-based learning programs; and
          (E) programs that address State and local labor shortages;

        (2) annually report to the Secretary and the Attorney General
      on the results of the evaluations conducted using the methods and
      performance measures contained in the proposal; and
        (3) provide to each State for each student eligible under
      subsection (f) of this section not more than $1,500 annually for
      tuition, books, and essential materials, and not more than $300
      annually for related services such as career development,
      substance abuse counseling, parenting skills training, and health
      education, for each eligible incarcerated youth.
    (f) Student eligibility
      A youth offender shall be eligible for participation in a program
    receiving a grant under this section if the youth offender - 
        (1) is eligible to be released within 5 years (including a
      youth offender who is eligible for parole within such time); and
        (2) is 25 years of age or younger.
    (g) Length of participation
      A State correctional education agency receiving a grant under
    this section shall provide educational and related services to each
    participating youth offender for a period not to exceed 5 years, 1
    year of which may be devoted to study in a graduate education
    degree program or to remedial education services for students who
    have obtained a secondary school diploma or its recognized
    equivalent. Educational and related services shall start during the
    period of incarceration in prison or prerelease and may continue
    during the period of parole.
    (h) Education delivery systems
      State correctional education agencies and cooperating
    institutions shall, to the extent practicable, use high-tech
    applications in developing programs to meet the requirements and
    goals of this section.
    (i) Allocation of funds
      From the funds appropriated pursuant to subsection (j) of this
    section for each fiscal year, the Secretary shall allot to each
    State an amount that bears the same relationship to such funds as
    the total number of students eligible under subsection (f) of this
    section in such State bears to the total number of such students in
    all States.
    (j) Authorization of appropriations
      There are authorized to be appropriated to carry out this section
    $17,000,000 for fiscal year 1999 and such sums as may be necessary
    for each of the 4 succeeding fiscal years.

-SOURCE-
    (Pub. L. 105-244, title VIII, Sec. 821, Oct. 7, 1998, 112 Stat.
    1813.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Higher Education Amendments of
    1998, and not as part of the Higher Education Act of 1965 which
    comprises this chapter.

-End-



-CITE-
    20 USC Sec. 1152                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VIII - MISCELLANEOUS

-HEAD-
    Sec. 1152. Repealed.

-MISC1-
    Sec. 1152. Repealed. Pub. L. 109-162, title III, Sec. 304(f), Jan.
      5, 2006, 119 Stat. 3016.
      Section, Pub. L. 105-244, title VIII, Sec. 826, Oct. 7, 1998, 112
    Stat. 1815; Pub. L. 106-386, div. B, title I, Sec. 1108(a), title
    V, Sec. 1512(d), Oct. 28, 2000, 114 Stat. 1500, 1533; Pub. L. 109-
    162, title XI, Sec. 1135(d), Jan. 5, 2006, 119 Stat. 3109; Pub. L.
    109-271, Secs. 2(d), 8(b), Aug. 12, 2006, 120 Stat. 752, 766,
    related to grants to combat violent crimes against women on
    campuses.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective beginning fiscal year 2007, see section 4 of
    Pub. L. 109-162, as added by Pub. L. 109-271, Sec. 1(b), Aug. 12,
    2006, 120 Stat. 750, set out as an Effective Date of 2006 Amendment
    note under section 3793 of Title 42, The Public Health and Welfare.

-End-



-CITE-
    20 USC Sec. 1153                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VIII - MISCELLANEOUS

-HEAD-
    Sec. 1153. Underground Railroad educational and cultural program

-STATUTE-
    (a) Program established
      The Secretary of Education, in consultation and cooperation with
    the Secretary of the Interior, is authorized to make grants to 1 or
    more nonprofit educational organizations that are established to
    research, display, interpret, and collect artifacts relating to the
    history of the Underground Railroad.
    (b) Grant agreement
      Each nonprofit educational organization awarded a grant under
    this section shall enter into an agreement with the Secretary of
    Education. Each such agreement shall require the organization - 
        (1) to establish a facility to house, display, and interpret
      the artifacts related to the history of the Underground Railroad,
      and to make the interpretive efforts available to institutions of
      higher education that award a baccalaureate or graduate degree;
        (2) to demonstrate substantial private support for the facility
      through the implementation of a public-private partnership
      between a State or local public entity and a private entity for
      the support of the facility, which private entity shall provide
      matching funds for the support of the facility in an amount equal
      to 4 times the amount of the contribution of the State or local
      public entity, except that not more than 20 percent of the
      matching funds may be provided by the Federal Government;
        (3) to create an endowment to fund any and all shortfalls in
      the costs of the on-going operations of the facility;
        (4) to establish a network of satellite centers throughout the
      United States to help disseminate information regarding the
      Underground Railroad throughout the United States, if such
      satellite centers raise 80 percent of the funds required to
      establish the satellite centers from non-Federal public and
      private sources;
        (5) to establish the capability to electronically link the
      facility with other local and regional facilities that have
      collections and programs which interpret the history of the
      Underground Railroad; and
        (6) to submit, for each fiscal year for which the organization
      receives funding under this section, a report to the Secretary of
      Education that contains - 
          (A) a description of the programs and activities supported by
        the funding;
          (B) the audited financial statement of the organization for
        the preceding fiscal year;
          (C) a plan for the programs and activities to be supported by
        the funding as the Secretary may require; and
          (D) an evaluation of the programs and activities supported by
        the funding as the Secretary may require.
    (c) Authorization of appropriations
      There are authorized to be appropriated to carry out this section
    $6,000,000 for fiscal year 1999, $6,000,000 for fiscal year 2000,
    $6,000,000 for fiscal year 2001, $3,000,000 for fiscal year 2002,
    and $3,000,000 for fiscal year 2003.

-SOURCE-
    (Pub. L. 105-244, title VIII, Sec. 841, Oct. 7, 1998, 112 Stat.
    1820.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Higher Education Amendments of
    1998, and not as part of the Higher Education Act of 1965 which
    comprises this chapter.

-End-



-CITE-
    20 USC Sec. 1154                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VIII - MISCELLANEOUS

-HEAD-
    Sec. 1154. Contract authority

-STATUTE-
      The authorization to enter into contracts or other obligations
    under the Act, as amended by this Act, shall be effective for
    fiscal year 1981 and any succeeding fiscal year only to the extent
    or in such amounts as are provided in advance in appropriation
    Acts.

-SOURCE-
    (Pub. L. 96-374, title XIII, Sec. 1392, Oct. 3, 1980, 94 Stat.
    1504.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Act, as amended by this Act, referred to in text, means the
    Higher Education Act of 1965, Pub. L. 89-329, Nov. 8, 1965, 79
    Stat. 1219, as amended by the Education Amendments of 1980, Pub. L.
    96-373, Oct. 3, 1980, 94 Stat. 1367, which is classified
    principally to this chapter. 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                           
      Section was formerly classified to section 1146 of this title.
      Section was enacted as part of the Education Amendments of 1980,
    and not as part of the Higher Education Act of 1965 which comprises
    this chapter.
      Section was enacted as part of the Higher Education Amendments of
    1986, and not as part of the Higher Education Act of 1965 which
    comprises this chapter.


-MISC1-
                              EFFECTIVE DATE                          
      Section effective Oct. 1, 1980, see section 1393(a) of Pub. L. 96-
    374, set out as an Effective Date of 1980 Amendment note under
    section 1001 of this title.

              CONTRACTING AUTHORITY SUBJECT TO APPROPRIATIONS          
      Pub. L. 99-498, Sec. 3, Oct. 17, 1986, 100 Stat. 1278, provided
    that: "The authority to enter into contracts or other obligations
    under this Act (other than amendments made to part B of title IV of
    the Act) [see Tables for classification] shall be effective for any
    fiscal year only to such extent or in such amounts as are provided
    in appropriation Acts."

-End-



-CITE-
    20 USC Sec. 1155                                            01/03/2007

-EXPCITE-
    TITLE 20 - EDUCATION
    CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
    SUBCHAPTER VIII - MISCELLANEOUS

-HEAD-
    Sec. 1155. Connie Lee privatization

-STATUTE-
    (a) Status of Corporation and corporate powers; obligations not
      federally guaranteed
      (1) Status of the Corporation
        The Corporation shall not be an agency, instrumentality, or
      establishment of the United States Government, nor a Government
      corporation, nor a Government controlled corporation, as such
      terms are defined in section 103 of title 5. No action under
      section 1491 of title 28 (commonly known as the Tucker Act) shall
      be allowable against the United States based on the actions of
      the Corporation.
      (2) Corporate powers
        The Corporation shall be subject to the provisions of this
      section, and, to the extent not inconsistent with this section,
      to the District of Columbia Business Corporation Act (or the
      comparable law of another State, if applicable). The Corporation
      shall have the powers conferred upon a corporation by the
      District of Columbia Business Corporation Act (or such other
      applicable State law) as from time to time in effect in order to
      conduct the Corporation's affairs as a private, for-profit
      corporation and to carry out the Corporation's purposes and
      activities incidental thereto. The Corporation shall have the
      power to enter into contracts, to execute instruments, to incur
      liabilities, to provide products and services, and to do all
      things as are necessary or incidental to the proper management of
      the Corporation's affairs and the efficient operation of a
      private, for-profit business.
      (3) Limitation on ownership of stock
        (A) Student Loan Marketing Association
          The Student Loan Marketing Association shall not increase its
        share of the ownership of the Corporation in excess of 42
        percent of the shares of stock of the Corporation outstanding
        on September 30, 1996. The Student Loan Marketing Association
        shall not control the operation of the Corporation, except that
        the Student Loan Marketing Association may participate in the
        election of directors as a shareholder, and may continue to
        exercise the Student Loan Marketing Association's right to
        appoint directors under section 1132f-3 of this title as long
        as that section is in effect.
        (B) Prohibition
          Until such time as the Secretary of the Treasury sells the
        stock of the Corporation owned by the Secretary of Education
        pursuant to subsection (c) of this section, the Student Loan
        Marketing Association shall not provide financial support or
        guarantees to the Corporation.
        (C) Financial support or guarantees
          After the Secretary of the Treasury sells the stock of the
        Corporation owned by the Secretary of Education pursuant to
        subsection (c) of this section, the Student Loan Marketing
        Association may provide financial support or guarantees to the
        Corporation, if such support or guarantees are subject to terms
        and conditions that are no more advantageous to the Corporation
        than the terms and conditions the Student Loan Marketing
        Association provides to other entities, including, where
        applicable, other monoline financial guaranty corporations in
        which the Student Loan Marketing Association has no ownership
        interest.
      (4) No Federal guarantee
        (A) Obligations insured by the Corporation
          (i) Full faith and credit of the United States
            No obligation that is insured, guaranteed, or otherwise
          backed by the Corporation shall be deemed to be an obligation
          that is guaranteed by the full faith and credit of the United
          States.
          (ii) Student Loan Marketing Association
            No obligation that is insured, guaranteed, or otherwise
          backed by the Corporation shall be deemed to be an obligation
          that is guaranteed by the Student Loan Marketing Association.
          (iii) Special rule
            This paragraph shall not affect the determination of
          whether such obligation is guaranteed for purposes of Federal
          income taxes.
        (B) Securities offered by the Corporation
          No debt or equity securities of the Corporation shall be
        deemed to be guaranteed by the full faith and credit of the
        United States.
      (5) "Corporation" defined
        The term "Corporation" as used in this section means the
      College Construction Loan Insurance Association as in existence
      on the day before September 30, 1996, and any successor
      corporation.
    (b) Related privatization requirements
      (1) Notice requirements
        (A) In general
          During the six-year period following September 30, 1996, the
        Corporation shall include, in each of the Corporation's
        contracts for the insurance, guarantee, or reinsurance of
        obligations, and in each document offering debt or equity
        securities of the Corporation, a prominent statement providing
        notice that - 
            (i) such obligations or such securities, as the case may
          be, are not obligations of the United States, nor are such
          obligations or such securities, as the case may be,
          guaranteed in any way by the full faith and credit of the
          United States; and
            (ii) the Corporation is not an instrumentality of the
          United States.
        (B) Additional notice
          During the five-year period following the sale of stock
        pursuant to subsection (c)(1) of this section, in addition to
        the notice requirements in subparagraph (A), the Corporation
        shall include, in each of the contracts and documents referred
        to in such subparagraph, a prominent statement providing notice
        that the United States is not an investor in the Corporation.
      (2) Corporate charter
        The Corporation's charter shall be amended as necessary and
      without delay to conform to the requirements of this section.
      (3) Corporate name
        The name of the Corporation, or of any direct or indirect
      subsidiary thereof, may not contain the term "College
      Construction Loan Insurance Association", or any substantially
      similar variation thereof.
      (4) Articles of incorporation
        The Corporation shall amend the Corporation's articles of
      incorporation without delay to reflect that one of the purposes
      of the Corporation shall be to guarantee, insure, and reinsure
      bonds, leases, and other evidences of debt of educational
      institutions, including Historically Black Colleges and
      Universities and other academic institutions which are ranked in
      the lower investment grade category using a nationally recognized
      credit rating system.
      (5) Requirements until stock sale
        Notwithstanding subsection (d) of this section, the
      requirements of sections 1132f-3 and 1132f-9 of this title, as
      such sections were in effect on the day before September 30,
      1996, shall continue to be effective until the day immediately
      following the date of closing of the purchase of the Secretary of
      Education's stock (or the date of closing of the final purchase,
      in the case of multiple transactions) pursuant to subsection
      (c)(1) of this Act.(!1)

    (c) Sale of federally owned stock
      (1) Purchase by the Corporation
        The Secretary of the Treasury shall sell and the Corporation
      shall purchase, within 90 days after September 30, 1996, the
      stock of the Corporation held by the Secretary of Education at a
      price determined by the binding, independent appraisal of a
      nationally recognized financial firm, except that the 90-day
      period may be extended by mutual agreement of the Secretary of
      the Treasury and the Corporation to not more than 150 days after
      September 30, 1996. The appraiser shall be jointly selected by
      the Secretary of the Treasury and the Corporation. In the event
      that the Secretary of the Treasury and the Corporation cannot
      agree on the appraiser, then the Secretary of the Treasury and
      the Corporation shall name an independent third party to select
      the appraiser.
      (2) Reimbursement of costs and expenses of sale
        The Secretary of the Treasury shall be reimbursed from the
      proceeds of the sale of the stock under this subsection for all
      reasonable costs and expenses related to such sale, except that
      one-half of all reasonable costs and expenses relating to the
      independent appraisal under paragraph (1) shall be borne by the
      Corporation.
      (3) Deposit into account
        Amounts collected from the sale of stock pursuant to this
      subsection that are not used to reimburse the Secretary of the
      Treasury pursuant to paragraph (2) shall be deposited into the
      account established under subsection (e) of this section.
      (4) Assistance by the Corporation
        The Corporation shall provide such assistance as the Secretary
      of the Treasury and the Secretary of Education may require to
      facilitate the sale of the stock under this subsection.
      (5) Report to Congress
        Not later than 6 months after September 30, 1996, the Secretary
      of the Treasury shall report to the appropriate committees of
      Congress on the completion and terms of the sale of stock of the
      Corporation pursuant to this subsection.
    (d) Omitted
    (e) Establishment of account
      (1) In general
        Notwithstanding any other provision of law, the District of
      Columbia Financial Responsibility and Management Assistance
      Authority shall establish an account to receive - 
          (A) amounts collected from the sale and proceeds resulting
        from the exercise of stock warrants pursuant to section 1087-
        3(c)(9) of this title;
          (B) amounts and proceeds remitted as compensation for the
        right to assign the "Sallie Mae" name as a trademark or service
        mark pursuant to section 1087-3(e)(3) of this title; and
          (C) amounts and proceeds collected from the sale of the stock
        of the Corporation and deposited pursuant to subsection (c)(3)
        of this section.
      (2) Amounts and proceeds
        (A) Amounts and proceeds relating to Sallie Mae
          The amounts and proceeds described in subparagraphs (A) and
        (B) of paragraph (1) shall be used to finance public elementary
        and secondary school facility construction and repair within
        the District of Columbia or to carry out the District of
        Columbia School Reform Act of 1995.
        (B) Amounts and proceeds relating to Connie Lee
          The amounts and proceeds described in subparagraph (C) of
        paragraph (1) shall be used to finance public and public
        charter elementary and secondary school facility construction
        and repair within the District of Columbia. Of such amounts and
        proceeds, $5,000,000 shall be set aside for a credit
        enhancement revolving fund for public charter schools in the
        District of Columbia, to be administered and disbursed in
        accordance with paragraph (3).
      (3) Credit enhancement revolving fund for public charter schools
        (A) Distribution of amounts
          Of the amounts in the credit enhancement revolving fund
        established under paragraph (2)(B) - 
            (i) 50 percent shall be used to make grants under
          subparagraph (B); and
            (ii) 50 percent shall be used to make grants under
          subparagraph (C).
        (B) Grants to eligible nonprofit corporations
          (i) In general
            Using the amounts described in subparagraph (A)(i), the
          Mayor of the District of Columbia shall make and disburse
          grants to eligible nonprofit corporations to carry out the
          purposes described in subparagraph (E).
          (ii) Administration
            Subject to subparagraph (F), the Mayor shall administer the
          program of grants under this subparagraph, except that if the
          committee described in subparagraph (C)(iii) is in operation
          and is fully functional prior to the date the Mayor makes the
          grants, the Mayor may delegate the administration of the
          program to the committee.
        (C) Other grants
          (i) In general
            Using the amounts described in subparagraph (A)(ii), the
          Mayor of the District of Columbia shall make grants to
          entities to carry out the purposes described in subparagraph
          (E).
          (ii) Participation of schools
            A public charter school in the District of Columbia may
          receive a grant under this subparagraph to carry out the
          purposes described in subparagraph (E) in the same manner as
          other entities receiving grants to carry out such activities.
          (iii) Administration through committee
            Subject to subparagraph (F), the Mayor shall carry out this
          subparagraph through the committee appointed by the Mayor
          under the second sentence of paragraph (2)(B) (as in effect
          prior to November 22, 2000). The committee may enter into an
          agreement with a third party to carry out its
          responsibilities under this subparagraph.
          (iv) Cap on administrative costs
            Not more than 5 percent of the funds available for grants
          under this subparagraph for a fiscal year may be used to
          cover the administrative costs of making grants under this
          subparagraph for the fiscal year.
        (D) Special rule regarding eligibility of nonprofit
          corporations
          In order to be eligible to receive a grant under this
        paragraph, a nonprofit corporation must provide appropriate
        certification to the Mayor or to the committee described in
        subparagraph (C)(iii) (as the case may be) that it is duly
        authorized by two or more public charter schools in the
        District of Columbia to act on their behalf in obtaining
        financing (or in assisting them in obtaining financing) to
        cover the costs of activities described in subparagraph (E)(i).
        (E) Purposes of grants
          (i) In general
            The recipient of a grant under this paragraph shall use the
          funds provided under the grant to carry out activities to
          assist public charter schools in the District of Columbia in -
           
              (I) obtaining financing to acquire interests in real
            property (including by purchase, lease, or donation),
            including financing to cover planning, development, and
            other incidental costs;
              (II) obtaining financing for construction of facilities
            or the renovation, repair, or alteration of existing
            property or facilities (including the purchase or
            replacement of fixtures and equipment), including financing
            to cover planning, development, and other incidental costs;
              (III) enhancing the availability of loans (including
            mortgages) and bonds; and
              (IV) obtaining lease guarantees (in accordance with
            regulations promulgated by the Office of Public Charter
            School Financing).
          (ii) No direct funding for schools
            Funds provided under a grant under this subparagraph may
          not be used by a recipient to make direct loans or grants to
          public charter schools.
        (F) Role of Office of Public Charter School Financing and
          Support
          During fiscal year 2003 and each succeeding fiscal year, the
        Office of Public Charter School Financing and Support shall be
        responsible for receiving applications, making payments, and
        otherwise administering this paragraph, except that no grant
        may be made under this paragraph without the approval of the
        committee described in subparagraph (C)(iii).

-SOURCE-
    (Pub. L. 104-208, div. A, title I, Sec. 101(e) [title VI, Sec.
    603], Sept. 30, 1996, 110 Stat. 3009-233, 3009-290; Pub. L. 106-
    113, div. A, title I, Sec. 153, Nov. 29, 1999, 113 Stat. 1526;
    Pub. L. 106-522, Sec. 161, Nov. 22, 2000, 114 Stat. 2483; Pub. L.
    106-553, Sec. 1(a)(1) [Sec. 161], Dec. 21, 2000, 114 Stat. 2762,
    2762A-45; Pub. L. 106-554, Sec. 1(a)(4) [div. A, Sec. 406(a)], Dec.
    21, 2000, 114 Stat. 2763, 2763A-189; Pub. L. 107-96, Dec. 21, 2001,
    115 Stat. 936; Pub. L. 108-7, div. C, title III, Sec. 143(c), Feb.
    20, 2003, 117 Stat. 131; Pub. L. 108-199, div. C, title IV, Sec.
    434, Jan. 23, 2004, 118 Stat. 141; Pub. L. 108-335, title III, Sec.
    340(a), Oct. 18, 2004, 118 Stat. 1348; Pub. L. 108-447, div. J,
    title I, Sec. 103(a)(2), Dec. 8, 2004, 118 Stat. 3341.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The District of Columbia Business Corporation Act, referred to in
    subsec. (a)(2), is act June 8, 1954, ch. 269, 68 Stat. 179, as
    amended, which is not classified to the Code.
      Sections 1132f-3 and 1132f-9 of this title, referred to in
    subsecs. (a)(3)(A) and (b)(5), were repealed by subsec. (d) of this
    section.
      The District of Columbia School Reform Act of 1995, referred to
    in subsec. (e)(2)(A), is Pub. L. 104-134, title I, Sec. 101(b)
    [title II], Apr. 26, 1996, 110 Stat. 1321-77, 1321-107, as amended,
    which amended sections 6322, 6364, and 6365 of this title and
    enacted provisions set out as a note under section 6322 of this
    title. For complete classification of this Act to the Code, see
    Tables.

-COD-
                               CODIFICATION                           
      Section was formerly classified to section 1132f-10 of this
    title.
      Section enacted as part of the Student Loan Marketing Association
    Reorganization Act of 1996, and not as part of the Higher Education
    Act of 1965 which comprises this chapter.
      Section is comprised of section 101(e) [title VI, Sec. 603] of
    div. A of Pub. L. 104-208. Subsec. (d) of section 603 of title VI
    of section 101(e) of Pub. L. 104-208, repealed sections 1132f to
    1132f-9 of this title.


-MISC1-
                                AMENDMENTS                            
      2004 - Subsec. (e)(3)(C)(iv). Pub. L. 108-199 inserted "for a
    fiscal year" after "this subparagraph" and "for the fiscal year"
    before period at end.
      Subsec. (e)(3)(E)(i)(IV). Pub. L. 108-335, Sec. 340, as amended
    by Pub. L. 108-447, which directed the amendment of subsec.
    (e)(3)(E) by adding subcl. (IV) at the end, was executed by adding
    subcl. (IV) at the end of cl. (i), to reflect the probable intent
    of Congress.
      2003 - Subsec. (e)(3)(B)(ii), (C)(iii). Pub. L. 108-7, Sec.
    143(c)(1), substituted "Subject to subparagraph (F), the Mayor" for
    "The Mayor".
      Subsec. (e)(3)(F). Pub. L. 108-7, Sec. 143(c)(2), added subpar.
    (F).
      2001 - Subsec. (e)(2)(B). Pub. L. 107-96, par. (2), which
    directed amendment of section 161 of Pub. L. 106-522, by inserting
    "revolving" after "enhancement" in second sentence of par. (2)(B),
    was executed by revising the amendment by Pub. L. 106-522, Sec.
    161(1), which had amended the second sentence of subsec. (e)(2)(B)
    of this section, to reflect the probable intent of Congress. See
    2000 Amendment note below.
      Subsec. (e)(3). Pub. L. 107-96, pars. (1), (3), amended Pub. L.
    106-522, Sec. 161(2). See 2000 Amendment note below.
      Pub. L. 107-96, par. (2), which directed amendment of section 161
    of Pub. L. 106-522, by inserting "revolving" after "enhancement" in
    heading of par. (3) and in par. (3)(A), was executed by revising
    the amendment by Pub. L. 106-522, Sec. 161(2), which had added
    subsec. (e)(3) to this section, to reflect the probable intent of
    Congress. See 2000 Amendment note below.
      Subsec. (e)(3)(C)(iv). Pub. L. 107-96, proviso, which directed
    amendment of the cap on administrative costs as amended by Pub. L.
    106-522, Sec. 161, by substituting "5 percent" for "10 percent",
    could not be executed because the words "10 percent" did not appear
    in this section after the amendment of Pub. L. 106-522, Sec.
    161(2), by Pub. L. 107-96, par. (3). See 2000 Amendment note below.
      2000 - Subsec. (e)(2)(B). Pub. L. 106-553, Sec. 1(a)(1) [Sec.
    161(1)], which directed amendment identical to amendment by Pub. L.
    106-522, Sec. 161(1), below, was repealed by Pub. L. 106-554, Sec.
    1(a)(4) [div. A, Sec. 406(a)]. See Effective Date and Construction
    of 2000 Amendment note below.
      Pub. L. 106-522, Sec. 161(1), as amended by Pub. L. 107-96, par.
    (2), amended second sentence generally. Prior to amendment, second
    sentence read as follows: "Of such amounts and proceeds, $5,000,000
    shall be set aside for use as a credit enhancement fund for public
    charter schools in the District of Columbia, with the
    administration of the fund (including the making of loans) to be
    carried out by the Mayor through a committee consisting of three
    individuals appointed by the Mayor of the District of Columbia and
    two individuals appointed by the Public Charter School Board
    established under section 2214 of the District of Columbia School
    Reform Act of 1995."
      Subsec. (e)(3). Pub. L. 106-553, Sec. 1(a)(1) [Sec. 161(2)],
    which directed amendment identical to amendment by Pub. L. 106-522,
    Sec. 161(2), below, was repealed by Pub. L. 106-554, Sec. 1(a)(4)
    [div. A, Sec. 406(a)]. See Effective Date and Construction of 2000
    Amendment note below.
      Pub. L. 106-522, Sec. 161(2), as amended by Pub. L. 107-96, pars.
    (1) to (3), added par. (3).
      1999 - Subsec. (e)(2)(B). Pub. L. 106-113 inserted "and public
    charter" after "public" and inserted at end "Of such amounts and
    proceeds, $5,000,000 shall be set aside for use as a credit
    enhancement fund for public charter schools in the District of
    Columbia, with the administration of the fund (including the making
    of loans) to be carried out by the Mayor through a committee
    consisting of three individuals appointed by the Mayor of the
    District of Columbia and two individuals appointed by the Public
    Charter School Board established under section 2214 of the District
    of Columbia School Reform Act of 1995."

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Pub. L. 108-447, div. J, title I, Sec. 103(b), Dec. 8, 2004, 118
    Stat. 3343, provided that: "The amendments made by this section
    [amending this section] shall take effect as if included in the
    enactment of the District of Columbia Appropriations Act, 2005
    [Pub. L. 108-335]."

                     EFFECTIVE DATE OF 2001 AMENDMENT                 
      Pub. L. 107-96, Dec. 21, 2001, 115 Stat. 936, provided that the
    amendments made by that act to section 161 of Pub. L. 106-522 are
    effective as if included in Pub. L. 106-522.

             EFFECTIVE DATE AND CONSTRUCTION OF 2000 AMENDMENT         
      Pub. L. 106-554, Sec. 1(a)(4) [div. A, Sec. 406], Dec. 21, 2000,
    114 Stat. 2763, 2763A-189, provided that:
      "(a) The provisions of H.R. 5547 (as enacted into law by H.R.
    4942 of the 106th Congress) [H.R. 5547 as enacted by section
    1(a)(1) of Pub. L. 106-553, amending this section and enacting
    provisions set out as a note under section 6301 of Title 31, Money
    and Finance] are repealed and shall be deemed for all purposes
    (including section 1(b) of H.R. 4942 [Pub. L. 106-553, 1 U.S.C. 112
    note]) to have never been enacted.
      "(b) The repeal made by this section shall take effect as if
    included in H.R. 4942 of the 106th Congress [Pub. L. 106-553] on
    the date of its enactment [Dec. 21, 2000]."

-FOOTNOTE-               

    (!1) So in original. Probably should be "section."


-End-