424 
SEC. 4072. ALLOCATION OF FUNDS FOR PERKINS LOAN. 
Section 462 of the Higher Education Act of 1965 (20 
U.S.C. 1087bb) is amended— 
(1) in subsection (a)(1), by striking ‘‘From’’ 
and inserting ‘‘For any fiscal year before fiscal year 
2019, from’’; and 
(2) in subsection (i)(1), by striking ‘‘for any fis-
cal year,’’ and inserting ‘‘for any fiscal year before 
fiscal year 2019,’’. 
SEC. 4073. FEDERAL DIRECT PERKINS LOAN ALLOCATION. 
Part E of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087aa et seq.) is amended by inserting 
after section 462 the following: 
‘‘SEC. 462A. FEDERAL DIRECT PERKINS LOAN ALLOCATION. 
‘‘(a) PURPOSES.—The purposes of this section are— 
‘‘(1) to allocate, among eligible and partici-
pating institutions (as such terms are defined in this 
section), the authority to make Federal Direct Per-
kins Loans under section 455A with a portion of the 
annual loan authority described in subsection (b); 
and 
‘‘(2) to make funds available, in accordance 
with section 452, to each participating institution 
from a portion of the annual loan authority de-
scribed in subsection (b), in an amount not to exceed 
the sum of an institution’s allocation of funds under 
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subparagraphs (A), (B), and (C) of subsection (b)(1) 
to enable each such institution to make Federal Di-
rect Perkins Loans to eligible students at the insti-
tution. 
‘‘(b) AVAILABLE DIRECT PERKINS ANNUAL LOAN 
AUTHORITY.— 
‘‘(1) AVAILABILITY AND ALLOCATIONS.—There 
are hereby made available, from funds made avail-
able for loans made under part D, not to exceed 
$6,000,000,000 of annual loan authority for award 
year 2019–2020 and each succeeding award year, to 
be allocated as follows (except as provided in para-
graphs (3) and (4)): 
‘‘(A) The Secretary shall allocate 1⁄2 of 
such funds for each award year by allocating to 
each participating institution an amount equal 
to the adjusted self-help need amount of the in-
stitution, as determined in accordance with sub-
section (c) for such award year. 
‘‘(B) The Secretary shall allocate 1⁄4 of 
such funds for each award year by allocating to 
each participating institution an amount equal 
to the low tuition incentive amount of the insti-
tution, as determined in accordance with sub-
section (d). 
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‘‘(C) The Secretary shall allocate 1⁄4 of 
such funds for each award year by allocating to 
each participating institution an amount which 
bears the same ratio to the funds allocated 
under this subparagraph as the ratio deter-
mined in accordance with subsection (e) for the 
calculation of the Federal Pell Grant and de-
gree recipient amount of the institution. 
‘‘(2) NO FUNDS TO NON-PARTICIPATING INSTI-
TUTIONS.—The Secretary shall not make funds 
available under this subsection to any eligible insti-
tution that is not a participating institution. The ad-
justed self-help need amount (determined in accord-
ance with subsection (c)) of an eligible institution 
that is not a participating institution shall not be 
made available to any other institution. 
‘‘(3) REQUIRED MINIMUM AMOUNT.—Notwith-
standing paragraph (1), in no case shall the sum of 
a participating institution’s allocation of loan au-
thority computed under subsections (c), (d), and (e) 
be less than the average of the institution’s total 
principal amount of loans made under this part for 
each of the academic years 2011–2012 through 
2015–2016. 
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‘‘(4) ADDITIONAL ADJUSTMENTS.—If the Sec-
retary determines that the sum of a participating in-
stitution’s allocation of loan authority under sub-
sections (c), (d), and (e) is below the minimum 
amount required under paragraph (3), the Secretary 
shall— 
‘‘(A) for each institution for which the 
minimum amount under paragraph (3) is not 
satisfied, increase the amount of such sum to 
the amount of the required minimum under 
such paragraph; and 
‘‘(B) ratably reduce the amount of the sum 
of such loan authority of all participating insti-
tutions not described in subparagraph (A). 
‘‘(c) ADJUSTED SELF-HELP NEED AMOUNT.—For 
the purposes of subsection (b)(1)(A), the Secretary shall 
calculate the adjusted self-help need amount of each eligi-
ble institution for an award year as follows: 
‘‘(1) 
USE
OF
BASE
SELF-HELP
NEED 
AMOUNTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraphs (2), (3), and (4), the adjusted self- 
help need amount of each eligible institution 
shall be the institution’s base self-help need 
amount, which is the sum of— 
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‘‘(i) the self-help need of the institu-
tion’s eligible undergraduate students for 
such award year; and 
‘‘(ii) the self-help need of the institu-
tion’s eligible graduate and professional 
students for such award year. 
‘‘(B) UNDERGRADUATE
STUDENT
SELF- 
HELP NEED.—To determine the self-help need 
of an institution’s eligible undergraduate stu-
dents, the Secretary shall determine the sum of 
each eligible undergraduate student’s average 
cost of attendance for the second preceding 
award year less each such student’s expected 
family contribution (computed in accordance 
with part F) for the second preceding award 
year, except that, for each such eligible under-
graduate student, the amount computed by 
such subtraction shall not be less than zero or 
more than the lesser of— 
‘‘(i) 25 percent of the average cost of 
attendance with respect to such eligible 
student; or 
‘‘(ii) $5,500. 
‘‘(C) GRADUATE AND PROFESSIONAL STU-
DENT
SELF-HELP
NEED.—To determine the 
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self-help need of an institution’s eligible grad-
uate and professional students, the Secretary 
shall determine the sum of each eligible grad-
uate and professional student’s average cost of 
attendance for the second preceding award year 
less each such student’s expected family con-
tribution (computed in accordance with part F) 
for such second preceding award year, except 
that, for each such eligible graduate and profes-
sional student, the amount computed by such 
subtraction shall not be— 
‘‘(i) less than zero; and 
‘‘(ii) more than $8,000. 
‘‘(2) RATABLE REDUCTION ADJUSTMENTS.—If 
the sum of the base self-help need amounts of all eli-
gible institutions for an award year as determined 
under paragraph (1) exceeds 1⁄2 of the annual loan 
authority under subsection (b) for such award year, 
the Secretary shall ratably reduce the base self-help 
need amounts of all eligible institutions until the 
sum of such amounts is equal to the amount that is 
1⁄2 of the annual loan authority under subsection 
(b). 
‘‘(d) LOW TUITION INCENTIVE AMOUNT.— 
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‘‘(1) IN GENERAL.—For purposes of subsection 
(b)(1)(B), the Secretary shall determine the low tui-
tion incentive amount for each participating institu-
tion for each award year, by calculating for each 
such institution the sum of— 
‘‘(A) the total amount, if any (but not less 
than zero), by which— 
‘‘(i) the average tuition and required 
fees for the institution’s sector for the sec-
ond preceding award year; exceeds 
‘‘(ii) the tuition and required fees for 
the second preceding award year for each 
undergraduate and graduate student at-
tending the institution who had financial 
need (as determined under part F); plus 
‘‘(B) the total amount, if any (but not less 
than zero), by which— 
‘‘(i) the total amount for the second 
preceding award year of non-Federal grant 
aid provided to meet the financial need of 
all undergraduate students attending the 
institution (as determined without regard 
to financial aid not received under this 
title); exceeds 
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