with this section to eligible students enrolled at the 
institution. 
(2) 
ADMINISTRATION
OF
INTERNSHIP 
AWARDS.—Internship 
awards 
made 
from 
the 
grant— 
(A) shall be administered by the financial 
aid office of such institution; and 
(B) may be administered in conjunction 
with the career development office and career 
center of such institution. 
(3) PROHIBITION ON ALTERATION OF FINAN-
CIAL
AID.—A student’s receipt of an internship 
award from a grant under this section shall not be 
taken into account in determining the need or eligi-
bility of the student for financial assistance under 
title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.). 
(4) 
SUPPLEMENT
NOT
SUPPLANT.—Funds 
made available to carry out this section shall be used 
to supplement, and not supplant, other Federal and 
State funds available to carry out the activities de-
scribed in this section. 
(5) DEADLINE FOR SUMMER INTERNSHIPS.— 
Such institution shall make an award for a summer 
internship under this section by June 30 of a cal-
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endar year preceding the first day of the summer in-
ternship for that year. 
(d) CALCULATING AWARD AMOUNTS.— 
(1) AMOUNT TO QUALIFYING EDUCATIONAL IN-
STITUTIONS.— 
(A) IN GENERAL.—In determining a grant 
amount for a qualifying educational institution 
under this section, the Secretary shall ensure 
that the institution’s grant is equal to an 
amount that bears the same relationship to the 
total funds available to carry out this section 
for a fiscal year as the number of eligible stu-
dents enrolled at the institution (as determined 
by the Secretary on the basis of the most recent 
satisfactory data) bears to the total number of 
eligible students enrolled at all qualifying edu-
cational institutions, as so determined. 
(B) REALLOCATION.—If a qualifying edu-
cational institution does not receive funds under 
this paragraph, the Secretary shall reallocate 
such funds to other qualifying educational insti-
tutions in the same proportion funds are allo-
cated under subparagraph (A). 
(C) EXCEPTION.—In the case of a quali-
fying educational institution that does not 
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award all of the grant funds received under this 
section for a fiscal year to eligible students in 
accordance with this section, the Secretary, in 
awarding grants under this section for the suc-
ceeding fiscal year— 
(i) shall reallocate the unused funds 
to other qualifying educational institutions 
in the same proportion funds are allocated 
under subparagraph (A); and 
(ii) may award such institution a 
grant in an amount that is less than the 
full grant amount such institution would 
have otherwise received under subpara-
graph (A) for such year. 
(2) STUDENT AWARD PARAMETERS.— 
(A) MAXIMUM STUDENT AWARD.—A stu-
dent receiving an award of funds from a grant 
to a qualifying educational institution under 
this section may not receive— 
(i) more than $5,000 from such grant 
if the award is for a full-time internship; 
and 
(ii) more than $2,500 from such grant 
if the award is for a part-time internship. 
(B) CALCULATION OF STUDENT AWARD.— 
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(i) UNPAID INTERNSHIPS.— 
(I) AWARDS FOR IN-SCHOOL STU-
DENTS.—Subject 
to 
subparagraph 
(A), in the case of a student receiving 
an award for an unpaid internship 
that occurs during a period of enroll-
ment at the awarding qualifying edu-
cational institution, the amount of the 
award shall be, to the extent prac-
ticable, an amount based on the high-
er of— 
(aa) the applicable Federal 
minimum wage by each hour of 
the internship; or 
(bb) the applicable State 
minimum wage of the State in 
which the institution is located by 
each hour of the internship. 
(II) AWARDS
FOR
STUDENTS 
DURING
SUMMER
AND
WINTER 
TERMS.— 
(aa) IN GENERAL.—Subject 
to subparagraph (A), in the case 
of a student receiving an award 
for an unpaid internship that oc-
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curs during a period of non-
attendance at the awarding edu-
cational institution, the amount 
of the award shall, to the extent 
practicable, be an amount that 
covers reasonable cost of living 
expenses for the student. 
(bb) REASONABLE COST OF 
LIVING
EXPENSES.—For 
pur-
poses of item (aa), ‘‘reasonable 
cost of living expenses’’ shall in-
clude considerations of— 
(AA) the location of the 
internship; 
(BB) the length of the 
internship; 
(CC) travel costs asso-
ciated with the internship; 
(DD) 
housing 
costs 
during the duration of the 
internship; 
(EE) meal costs during 
the duration of the intern-
ship; and 
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(FF) whether the in-
ternship is full-time or part- 
time. 
(ii) PAID INTERNSHIPS.—In the case 
of a student receiving an award for a paid 
internship, the amount of the award shall 
be determined by reducing the amount 
such student would receive for an unpaid 
internship as calculated under clause (i) by 
the amount of income that the internship 
will provide to the student. 
(e) AWARDS NON-TAXABLE.—An award received by 
a student under this section shall not be considered tax-
able income. 
(f) CARRY-BACK AUTHORIZED.—A qualifying edu-
cational institution receiving a grant under this section for 
a fiscal year may use such grant funds to make internship 
awards under this section prior to the beginning of the 
fiscal year, but after the end of the previous academic 
year. 
(g) REPORTS.—Not later than 1 year after the date 
of enactment of this Act and each succeeding year in 
which the Secretary makes grants under this section, the 
Secretary shall submit to Congress a report detailing, with 
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regard to grants made under this section for the previous 
academic year— 
(1) the percentage of students receiving intern-
ship funds from grants under this section who, not 
later than 2 years after graduating from a qualifying 
educational institution, are hired in a field related to 
the internship for which the students received such 
funds; 
(2) the number of qualifying educational insti-
tutions receiving grants under this section; 
(3) the categories of qualifying educational in-
stitutions (such as 4-year public institutions, 4-year 
private, nonprofit institutions, 2-year public institu-
tions, and 2-year private, nonprofit institutions) re-
ceiving grants under this section; 
(4) the number of students receiving internship 
funds from grants under this section, and the de-
grees such students are pursuing; 
(5) the number of paid internships, and the 
number of unpaid internships, funded by such 
grants; 
(6) the locations of internships funded by such 
grants; 
(7) the number of students who used internship 
funds awarded under this section to complete an in-
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ternship more than 60 miles from the qualifying 
educational institution that made such award or that 
required the students to temporarily relocate for the 
duration of the internship; and 
(8) the types of internships (such as full-time 
summer internships, part-time summer internship, 
or part-time semester internships) completed by stu-
dents receiving awards funded by such grants. 
(h) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out this 
section, including regulations that provide guidance to 
qualifying educational institutions on how to determine 
whether an internship meets the requirements of sub-
clauses (I) through (III) of subsection (i)(1)(F)(vi). 
(i) DEFINITIONS.—For purposes of this section: 
(1) ELIGIBLE
STUDENT.—The term ‘‘eligible 
student’’ means a student who— 
(A) is a full-time or half-time student (as 
such terms are defined in section 668.2 of title 
34, Code of Federal Regulations (or a successor 
regulation)); 
(B) is eligible for a Federal Pell Grant 
under section 401 of the Higher Education Act 
of 1965 (20 U.S.C. 1070a et seq.); 
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(C) is enrolled at a qualifying educational 
institution in a program of study that leads to 
an associate’s or bachelor’s degree; 
(D) if the student has accepted an intern-
ship during a period of nonattendance at a 
qualifying educational institution— 
(i) demonstrates that the student is 
planning to re-enroll at such institution for 
the next period of enrollment at such insti-
tution by registering for such period of en-
rollment at the institution or accepting the 
institution’s offer of admittance for such 
period of enrollment; and 
(ii) will be eligible for a Federal Pell 
Grant under section 401 of such Act (20 
U.S.C. 1070a et seq.), for such period of 
enrollment; 
(E) has not, while pursuing the same de-
gree that such student is currently pursuing, 
previously received an award that included 
funds granted under subsection (a) to a quali-
fying educational institution; and 
(F) has received an official internship 
offer, as defined by the Secretary in regula-
tions, for an internship that— 
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(i) is located within the United States; 
(ii) in a case in which the internship 
employs (as defined under section 3(g) of 
the Fair Labor Standards Act (29 U.S.C. 
203(g)) the student, meets the require-
ments of such Act (29 U.S.C. 201 et seq.); 
(iii) is a full-time summer internship, 
a part-time summer internship, or a part- 
time semester internship; 
(iv) is not less than 4 weeks in dura-
tion, and is not greater in duration than 
the shorter of— 
(I) the length of a standard aca-
demic period at the qualifying edu-
cational institution; or 
(II) in the case of an internship 
that occurs during a period of non-
attendance at the awarding qualifying 
educational institution, 10 weeks, or 
in the case of an internship that oc-
curs during a period of attendance at 
the awarding qualifying educational 
institution, 12 weeks; 
(v) is— 
(I) an unpaid internship; or 
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(II) a paid internship that, ac-
cording to the determination of the 
qualifying 
educational 
institution, 
without an award under this section 
such student would otherwise be un-
able to afford participating in such in-
ternship; and 
(vi) is determined by the qualifying 
educational institution to be an internship 
that— 
(I) is of good and reputable qual-
ity; 
(II) affords adequate educational 
or skill-building opportunities; and 
(III) is reasonably associated 
with the student’s course of study at 
a qualifying educational institution. 
(2) FULL-TIME.—The term ‘‘full-time’’, when 
used with respect to an internship, shall be defined 
by the Secretary in regulations. 
(3) QUALIFYING EDUCATIONAL INSTITUTION.— 
The term ‘‘qualifying educational institution’’ has 
the meaning given the term ‘‘institution of higher 
education’’ in section 101(a) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001(a)). 
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(4) PART-TIME.—The term ‘‘part-time’’, when 
used with respect to an internship, shall be defined 
by the Secretary in regulations. 
(5) PERIOD OF NONATTENDENCE.—The term 
‘‘period of nonattendence’’, when used with respect 
to a student, means a period during which the stu-
dent is not enrolled at a qualifying educational insti-
tution, including a summer or winter term. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
Æ 
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