Grants to institutions to provide awards to undergraduate and vocational students with financial need to assist in completion of degree and certificate programs

Part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) is amended by inserting after subpart 7 the following new subpart:

Grants to institutions To provide awards to undergraduate and vocational students with financial need To assist in completion of degree and certificate programs

420.

Grants to institutions to provide awards to undergraduate and vocational students with financial need to assist in completion of degree and certificate programs

(a)

Grants for establishment of financial assistance program

The Secretary shall award grants to institutions of higher education to establish programs of financial assistance for students in accordance with this section. (b)

Financial assistance program

(1)

Establishment

An institution of higher education receiving a grant under subsection (a) shall establish a financial assistance program to award funds to not less than 100 eligible students per academic year in accordance with this subsection. (2)

Student eligibility

A student shall be eligible for an award under a financial assistance program established by an institution of higher education in accordance with this subsection if— (A)such student is enrolled as an undergraduate or vocational student at such institution on a not less than half-time basis; (B)such student is academically able to complete the degree or certificate program for which such student is enrolled within an academic year; (C)such student is in good academic standing at such institution (as determined by such institution) at the time of the distribution of the award; (D)in the case of a student who previously received an award under this section, such student maintained good academic standing during the academic period for which the student received such previous award under this section; (E)such student has an outstanding tuition payment due to such institution and is unable to fully pay the amount due; and (F)the institution determines that without financial assistance, such student will discontinue the degree or certificate program for which such student is enrolled due to an inability to pay tuition. (3)

Grant amount

The amount of an award to a student under a financial assistance program established by an institution of higher education in accordance with this subsection for a semester or equivalent shall be the lesser of— (A)$1,000; or (B)the amount of tuition such institution determines the student is unable to pay for such semester or equivalent. (4)

Limitation on number of grants

A student may only receive an award under a financial assistance program established by an institution of higher education in accordance with this subsection for a total of two semesters or the equivalent of two semesters. (5)

Information on other financial assistance

(A)

Information required

Each institution of higher education receiving a grant under subsection (a) shall provide information to each covered student attending such institution on financial assistance available from any source other than this section. (B)

Covered student defined

In this paragraph, the term covered student means a student receiving an award under a financial assistance program established by an institution of higher education in accordance with this subsection in an amount that does not fully pay an outstanding tuition payment due to such institution. (c)

Financial literacy survey

The Secretary shall create, and each student receiving an award under a financial assistance program established by an institution of higher education in accordance with subsection (b) shall complete, an online survey concerning financial literacy. Such survey shall include matters relating to budgeting and saving, student loan debt, and career planning. (d)

Reports

(1)

Institutions of higher education

Each institution of higher education receiving a grant under subsection (a) shall annually submit to the Secretary a report containing, for the academic year preceding the date of the submission of such report— (A)the number of students enrolled at such institution that received an award under a financial assistance program established by such institution in accordance with subsection (b); (B)the number of such students who completed the degree or certificate program in which such students were enrolled during such academic year; (C)the number of such students who, following completion of the degree or certificate program in which such students were enrolled, subsequently enrolled in a degree or certificate program at a higher level; (D)the number of such students who, following completion of the degree or certificate program in which such students were enrolled, subsequently obtained full-time employment and the average salary for such students; and (E)any other information that the Secretary considers necessary. (2)

Secretary

The Secretary shall annually submit to Congress a report on the implementation of this section. Such report shall include— (A)the aggregate data submitted by all institutions of higher education in accordance with paragraph (1); (B)an analysis of the grant program under this section and any suggestions for improving such program; and (C)any other information that the Secretary considers necessary. (e)

Authorization of appropriations

There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal years 2015 through 2020.