Section 1, R.S. §516, established Office of Education and provided for purpose and duties of Office.
Section 2, R.S. §517, provided for appointment of a Commissioner of Education to manage Office of Education.
Section 301(b)(2)(A) of Pub. L. 92–318 provided that the repeal is effective July 1, 1972.
Ex. Ord. No. 11185, Oct. 16, 1964, 29 F.R. 14399, as amended by Ex. Ord. No. 11260, Dec. 11, 1965, 30 F.R. 15395; Ex. Ord. No. 11661, Mar. 24, 1972, 37 FR 6281, which provided for the coordination of federal education programs, was superseded by Ex. Ord. No. 11761, Jan. 17, 1974, 39 F.R. 2345, formerly set out under section 1221 of this title.
Section, act May 26, 1930, ch. 330, 46 Stat. 384, provided for appointment of an Assistant Commissioner of Education.
Section 3, act May 28, 1896, ch. 252, §1, 29 Stat. 171; Reorg. Plan No. I of 1939, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; Reorg. Plan No. 1 of 1953, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631, provided for publication of a bulletin of Office of Education respecting condition of higher education, technical and industrial education, compulsory school attendance, and other domestic and foreign education topics, and provided for a one edition issue of 12,500 copies, chargeable to allotment for printing and binding of the Department of Health, Education, and Welfare.
Section 4, R.S. §518, which directed Commissioner of Education to present an annual report to Congress.
Section, R.S. §519; acts Feb. 26, 1925, ch. 339, §3, 43 Stat. 983; Mar. 2, 1934, ch. 38, §1, 48 Stat. 389; June 30, 1949, ch. 288, title I, §103, 63 Stat. 380, required Administrator of General Services to furnish proper offices for use of Office of Education.
Section, Pub. L. 90–576, title III, §303(a)–(d), Oct. 16, 1968, 82 Stat. 1095, related to collection and dissemination of information, providing in subsec. (a) for duties of Commissioner of Education, subsec. (b) for counseling and technical assistance in rural areas, in subsec. (c) for preparation and availability of catalog of Federal education assistance programs, and subsec. (d) for authorization of appropriations.
Section 11, acts Feb. 23, 1917, ch. 114, §1, 39 Stat. 929; Ex. Ord. No. 6166, §15, June 10, 1933; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, related to annual appropriations for payments to States for teaching agricultural, trade, home economics, and industrial subjects.
Section 12, acts Feb. 23, 1917, ch. 114, §2, 39 Stat. 930; July 12, 1960, Pub. L. 86–624, §14(b)(2), 74 Stat. 414, appropriated money for salaries of teachers, supervisors, and directors of agricultural subjects.
Section 13, act Feb. 23, 1917, ch. 114, §3, 39 Stat. 930, appropriated money for salaries of teachers of trade, home economics, and industrial subjects.
Section 14, acts Feb. 23, 1917, ch. 114, §4, 39 Stat. 931; June 25, 1959, Pub. L. 86–70, §18(b)(1), 73 Stat. 144; July 12, 1960, Pub. L. 86–624, §14(b)(2), 74 Stat. 414, appropriated money for preparation of teachers, supervisors, and directors of agricultural subjects and teachers of trade, industrial, and home economics.
Section 2 of act June 8, 1936, ch. 541, 49 Stat. 1488, as amended by act Aug. 1, 1946, ch. 725, title I, §101, 60 Stat. 775, provided that the act of Feb. 23, 1917, ch. 114, 39 Stat. 929 (enacting sections 11 to 15 and 16 to 28 of this title), was to be known as the Smith-Hughes Vocational Education Act. The 1917 act was also known as the Vocational Education Act of 1917.
The act of June 8, 1936, ch. 541, 49 Stat. 1488 (enacting sections 15i to 15ggg of this title), which was repealed by Pub. L. 90–576, title I, §103, Oct. 16, 1968, 82 Stat. 1091, was known as the Vocational Education Act of 1946.
Section 1 of Pub. L. 87–22, Apr. 24, 1961, 75 Stat. 44, provided that Pub. L. 87–22 (amending sections 15aa, 15bb, 15cc, and 15jj of this title) could be cited as “The Practical Nurse Training Extension Act of 1961”.
Section 15 was comprised of provisions of act Feb. 23, 1917, ch. 114, §7, 39 Stat. 933; Ex. Ord. No. 6166, §15, June 10, 1933; June 26, 1934, ch. 756, §2, 48 Stat. 1225; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, which authorized appropriations of $200,000 annually to the Department of Education for studies, investigations and reports and paying salaries of personnel necessary to administer this chapter, and act Oct. 6, 1917, ch. 79, §1, 40 Stat. 345, which authorized use of that appropriation also for printing and binding, law books, books of reference and periodicals, and postage on foreign mail. Section 7 of act Feb. 23, 1917, was repealed by Pub. L. 105–33, title VI, §6201, Aug. 5, 1997, 111 Stat. 653.
Sections 15a to 15c, act Feb. 5, 1929, ch. 153, §§1–3, 45 Stat. 1151, appropriated money to be used for further development of vocational education in States and Territories but appropriations were authorized for only four years after the fiscal year ending June 30, 1930.
Sections 15d to 15g, act May 21, 1934, ch. 324, §§1–4, 48 Stat. 792, provided for further development of vocational education in several States and Territories by authorizing additional appropriations for the fiscal years 1935–37.
Section 7 of act June 8, 1936, ch. 541, 49 Stat. 1490, incorporated in section 15o of this title, provided that appropriations authorized by act June 8, 1936, incorporated in sections 15h to 15p of this title, “shall be in lieu thereof and not in addition to the appropriations authorized in” sections 1 and 2 of act May 21, 1934.
Section 15h, acts June 8, 1936, ch. 541, §1, 49 Stat. 1488; Aug. 1, 1946, ch. 725, §1, 60 Stat. 775, provided for a popular name. Subject matter of section prior to its amendment related to the development of vocational education in States and Territories, appropriations and their allotment, and matching of funds by States and Territories, and was replaced by sections 15j and 15k of this title.
Section 15i, acts June 8, 1936, ch. 541, §2, 49 Stat. 1488; Aug. 1, 1946, ch. 725, title I, §101, 60 Stat. 775; Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 925; June 25, 1959, Pub. L. 86–70, §18(b)(2), 73 Stat. 144; July 12, 1960, Pub. L. 86–624, §14(b)(3), 74 Stat. 414, defined “States and Territories”, “State plan”, “State board”, and “Smith-Hughes Vocational Education Act”.
Section 15j, acts June 8, 1936, ch. 541, §3, 49 Stat. 1489; Aug. 1, 1946, ch. 725, title I, §101, 60 Stat. 775; Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 925; Aug. 8, 1956, ch. 1039, §2, 70 Stat. 1126, authorized appropriations for programs in vocational education in agriculture, home economics, trades and industry, distributive occupations, and fishery trades.
Section 15k, acts June 8, 1936, ch. 541, §4, 49 Stat. 1489; Aug. 1, 1946, ch. 725, title I, §101, 60 Stat. 776; Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 925, required that Federal funds be matched by State and local funds in order to receive benefits of section 15i et seq. of this title.
Section 15l, acts June 8, 1936, ch. 541, §5, 49 Stat. 1489; 1940 Reorg. Plan No. III, §1(a)(1), eff. June 30, 1940, 5 F.R. 2107, 54 Stat. 1231; Aug. 1, 1946, ch. 725, title I, §101, 60 Stat. 776; Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 925, provided for method of payment of funds to which the State or Territory was entitled under section 15i et seq. of this title.
Section 15m, acts June 8, 1936, ch. 541, §6, 49 Stat. 1489; Aug. 1, 1946, ch. 725, title I, §101, 60 Stat. 777; Aug. 2, 1956, ch. 871, title, III, §301, 70 Stat. 925, made funds available for salary and expenses of State directors.
For general subject matter of sections 15i to 15m, see section 1241 et seq. of this title.
Section 103 of Pub. L. 90–576 provided that the repeal is effective July 1, 1969.
Section, act June 8, 1936, ch. 541, §6a, 49 Stat. 1490, limited expenditures on industrial plant training and was omitted in the amendment of act June 8, 1936 by act Aug. 1, 1946, ch. 725, 60 Stat. 775.
Section 15o, acts June 8, 1936, ch. 541, §7, 49 Stat. 1490; Aug. 1, 1946, ch. 725, title I, §101, 60 Stat. 777; Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 925, made the Smith-Hughes Vocational Education Act applicable to the development of vocational education.
Section 15p, acts June 8, 1936, ch. 541, §8, 49 Stat. 1490; Aug. 1, 1946, ch. 725, title I, §101, 60 Stat. 777; Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 925, required that industrial-plant training be bona-fide vocational training and that no more than 10 percent be used for the purchase or acquisition of equipment.
Section 15q, act June 8, 1936, ch. 541, §9, as added Aug. 1, 1946, ch. 725, title I, §101, 60 Stat. 777; amended Reorg. Plan No. 1 of 1953, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 925, authorized appropriations for Office of Education.
For general subject matter of sections 15o to 15q, see section 1241 et seq. of this title.
Section 103 of Pub. L. 90–576 provided that the repeal is effective July 1, 1969.
Section 15aa, act Aug. 1, 1946, ch. 725, title II, §201, as added Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 925; amended Apr. 24, 1961, Pub. L. 87–22, §2, 75 Stat. 44; Dec. 18, 1963, Pub. L. 88–210, §11(a)(1), 77 Stat. 411, authorized an appropriation for grants to States with State plans for practical nurse training.
Section 15bb, act Aug. 1, 1946, ch. 725, title II, §202, as added Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 926; amended Apr. 24, 1961, Pub. L. 87–22, §3, 75 Stat. 44; Dec. 18, 1963, Pub. L. 88–210, §11(a)(2), 77 Stat. 411, provided for grants to States for practical nurse training.
Section 15cc, act Aug. 1, 1946, ch. 725, title II, §203, as added Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 926; amended Apr. 24, 1961, Pub. L. 87–22, §4, 75 Stat. 44, set out requirements for State plans under sections 15aa to 15jj of this title.
Section 15dd, act Aug. 1, 1946, ch. 725, title II, §204, as added Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 927, set out method of making and computing payments to States.
Section 15ee, act Aug. 1, 1946, ch. 725, title II, §205, as added Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 927, set out duties and authority of Commissioner in carrying out sections 15aa to 15jj of this title.
Section 15ff, act Aug. 1, 1946, ch. 725, title II, §206, as added Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 928, authorized appointment of advisory committees by Commissioner.
Section 15gg, act Aug. 1, 1946, ch. 725, title II, §207, as added Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 928, provided that amounts paid under sections 15aa to 15jj of this title should in no way affect the availability of funds for practical nurse training under sections 11 to 15, 16, and 18 to 28 and sections 15i to 15m and 15o to 15q of this title.
Section 15hh, act Aug. 1, 1946, ch. 725, title II, §208, as added Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 928, required Commissioner to submit an annual report on administration of sections 15aa to 15jj of this title.
Section 15ii, act Aug. 1, 1946, ch. 725, title II, §209, as added Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 928, authorized appropriation of funds necessary to administer sections 15aa to 15jj of this title.
Section 15jj, act Aug. 1, 1946, ch. 725, title II, §210, as added Aug. 2, 1956, ch. 871, title III, §301, 70 Stat. 928; amended June 25, 1959, Pub. L. 86–70, §18(b)(3), 73 Stat. 144; July 12, 1960, Pub. L. 86–624, §14(b)(4), 74 Stat. 414; Apr. 24, 1961, Pub. L. 87–22, §5, 75 Stat. 44, defined terms as used in sections 15aa to 15jj of this title.
For general subject matter of sections 15aa to 15jj, see section 1241 et seq. of this title.
Section 103 of Pub. L. 90–576 provided that the repeal is effective July 1, 1969.
Section 15aaa, act Aug. 1, 1946, ch. 725, title III, §301, as added Sept. 2, 1958, Pub. L. 85–864, title VIII, §802, 72 Stat. 1597; amended Oct. 3, 1961, Pub. L. 87–344, title II, §207, 75 Stat. 760; Dec. 18, 1963, Pub. L. 88–210, §11(b), 77 Stat. 411, authorized an appropriation of $15,000,000 annually for area vocational education programs.
Section 15bbb, act Aug. 1, 1946, ch. 725, title III, §302, as added Sept. 2, 1958, Pub. L. 85–864, title VIII, §802, 72 Stat. 1598, covered allotment of funds appropriated under section 15aaa of this title.
Section 15ccc, act Aug. 1, 1946, ch. 725, title III, §303, as added Sept. 2, 1958, Pub. L. 85–864, title VIII, §802, 72 Stat. 1598, set out conditions which States had to fulfill to qualify for payments.
Section 15ddd, act Aug. 1, 1946, ch. 725, title III, §304, as added Sept. 2, 1958, Pub. L. 85–864, title VIII, §802, 72 Stat. 1599, set out requirements of programs under sections 15aaa to 15ggg of this title.
Section 15eee, act Aug. 1, 1946, ch. 725, title III, §305, as added Sept. 2, 1958, Pub. L. 85–864, title VIII, §802, 72 Stat. 1599, covered additional State plan requirements for eligibility under sections 15aaa to 15ggg of this title.
Section 15fff, act Aug. 1, 1946, ch. 725, title III, §306, as added Sept. 2, 1958, Pub. L. 85–864, title VIII, §802, 72 Stat. 1600, authorized appropriations to administer sections 15aaa to 15ggg of this title.
Section 15ggg, act Aug. 1, 1946, ch. 725, title III, §307, as added Sept. 2, 1958, Pub. L. 85–864, title VIII, §802, 72 Stat. 1600; amended June 25, 1959, Pub. L. 86–70, §18(b)(3), 73 Stat. 144; July 12, 1960, Pub. L. 86–624, §14(b)(4), 74 Stat. 414, defined terms as used in sections 15aaa to 15ggg of this title.
For general subject matter of sections 15aaa to 15ggg, see section 1241 et seq. of this title.
Section 103 of Pub. L. 90–576 provided that the repeal is effective July 1, 1969.
Section, acts Feb. 23, 1917, ch. 114, §5, 39 Stat. 931; Ex. Ord. No. 6166, §15, June 10, 1933; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, provided for State acceptance of appropriations provided by sections 11 to 14 of this title and provided for creation of State boards.
Section, act Feb. 23, 1917, ch. 114, §6, 39 Stat. 932, created a Federal Board for Vocational Education, and provided for appointments, salary, powers and duties.
Section 18, acts Feb. 23, 1917, ch. 114, §8, 39 Stat. 933; Ex. Ord. No. 6166, §15, June 10, 1933; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, required State boards to submit plans and reports to Department of Education.
Section 19, acts Feb. 23, 1917, ch. 114, §9, 39 Stat. 933; Ex. Ord. No. 6166, §15, June 10, 1933; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, related to use of appropriations for salaries of teachers, supervisors, and directors of agricultural subjects and of teachers of trade, home economics, and industrial subjects and to requirement for State and local matching funds.
Section 20, acts Feb. 23, 1917, ch. 114, §10, 39 Stat. 934; Ex. Ord. No. 6166, §15, June 10, 1933; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, related to State use of appropriations for salaries of teachers, supervisors, and directors of agricultural subjects under an approved plan of supervision for the State.
Section 21, acts Feb. 23, 1917, ch. 114, §11, 39 Stat. 934; Ex. Ord. No. 6166, §15, June 10, 1933; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, related to State use of appropriations for salaries of teachers of trade, home economics, and industrial subjects under an approved plan of supervision for the State.
Section 22, acts Feb. 23, 1917, ch. 114, §12, 39 Stat. 935; Ex. Ord. No. 6166, §15, June 10, 1933; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, related to additional requirements for State plan of supervision in order for State to use appropriations under this chapter.
Section 23, act Feb. 23, 1917, ch. 114, §13, 39 Stat. 935, related to State custodians of funds appropriated under this chapter.
Section 24, acts Feb. 23, 1917, ch. 114, §14, 39 Stat. 935; Ex. Ord. No. 6166, §15, June 10, 1933; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, provided for Department of Education supervision of State expenditures and for quarterly payments to States.
Section 25, acts Feb. 23, 1917, ch. 114, §15, 39 Stat. 936; Ex. Ord. No. 6166, §15, June 10, 1933; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, provided for deductions from allotments when preceding allotments have not been expended for the purposes provided in this chapter.
Section 26, acts Feb. 23, 1917, ch. 114, §16, 39 Stat. 936; Ex. Ord. No. 6166, §15, June 10, 1933; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, provided for withholding of allotments and right to appeal withholdings.
Section 27, act Feb. 23, 1917, ch. 114, §17, 39 Stat. 936, provided for State replacement of lost funds and for limitations on use of funds.
Section, acts Feb. 23, 1917, ch. 114, §18, 39 Stat. 936; Ex. Ord. No. 6166, §15, June 10, 1933; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Oct. 17, 1979, Pub. L. 96–88, title III, §301, title V, §507, 93 Stat. 677, 692, directed Department of Education to report annually to Congress on administration of this chapter, including reports made by State boards and expenditure of money allotted to each State.
Section, act Mar. 10, 1924, ch. 46, §4, 43 Stat. 18, extended benefits of chapter to Territory of Hawaii.
Section 47(c) of Pub. L. 86–624 provided that: “The amendment made by paragraphs (1) and (2) of subsection (b) and paragraphs (1), (2), and (3) of subsection (d) of section 14 [amending sections 12, 14, and 238 of this title and repealing this section] shall be applicable in the case of fiscal years beginning after June 30, 1960.”
Section 30, acts Mar. 3, 1931, ch. 404, §1, 46 Stat. 1489; May 17, 1932, ch. 190, 47 Stat. 158, extended to Puerto Rico the benefits of sections 11–15, 16, and 18–28 of this title.
Section 31, act Mar. 18, 1950, ch. 71, §1, 64 Stat. 27, extended to Virgin Islands the benefits of Vocational Education Act of 1946 (sections 15i to 15m, 15o to 15q, 15aa to 15jj, and 15aaa to 15ggg of this title).
Section 32, act Mar. 18, 1950, ch. 71, §2, 64 Stat. 27; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631, authorized distribution of funds to Virgin Islands.
Section 33, act Mar. 18, 1950, ch. 71, §3, 64 Stat. 27; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631, set conditions governing use and payment of funds in Virgin Islands.
Section 34, act Aug. 1, 1956, ch. 852, §9, 70 Stat. 909, extended to Guam the benefits of Vocational Education Act of 1946.
Section 103 of Pub. L. 90–576 provided that the repeal is effective July 1, 1969.
Sections 35, 35 note, and 35a to 35n, which were enacted by Part A of Pub. L. 88–210, §§1–10, 12–17, Dec. 18, 1963, 77 Stat. 403 to 415, to be known as the “Vocational Education Act of 1963” were omitted in the general reorganization of Pub. L. 88–210 by Pub. L. 90–576, title I, §101, Oct. 16, 1968, 82 Stat. 1064, which redesignated such Part A as title I of Pub. L. 88–210 and, as so redesignated, completely reorganized such title I and authorized its citation as the “Vocational Education Act of 1963”. Such act, as redesignated and reorganized, was classified to section 1241 et seq. of this title.
Section 35, Pub. L. 88–210, §1, Dec. 18, 1963, 77 Stat. 403, set out declaration of policy as to sections 35 to 35n of this title.
Section 35 note, Pub. L. 88–210, §17, Dec. 18, 1963, 77 Stat. 415, named sections 1–17 of Pub. L. 88–210 the “Vocational Education Act of 1963”. See Codification note set out preceding section 2301 of this title.
Section 35a, Pub. L. 88–210, §2, Dec. 18, 1963, 77 Stat. 403, authorized annual appropriations.
Section 35b, Pub. L. 88–210, §3, Dec. 18, 1963, 77 Stat. 403, covered determination of allotment to be made to each State of sums appropriated under section 35a of this title.
Section 35c, Pub. L. 88–210, §4, Dec. 18, 1963, 77 Stat. 405, set out allowable uses for allotments.
Section 35d, Pub. L. 88–210, §5, Dec. 18, 1963, 77 Stat. 405, set out requisite elements of State plan and covered the designation of State board and State advisory council, policy and procedure for allocation of allotment, qualifications of persons under the plan, arrangements with public employment offices, accounting and fiscal control, labor standards, and reports.
Section 35e, Pub. L. 88–210, §6, Dec. 18, 1963, 77 Stat. 407, set conditions for payments to States.
Section 35f, Pub. L. 88–210, §7, Dec. 18, 1963, 77 Stat. 408, provided for application of labor standards under the Davis-Bacon Act (now 40 U.S.C. 3141 to 3144, 3146, and 3147) to construction projects assisted under sections 35 to 35n of this title.
Section 35g, Pub. L. 88–210, §8, Dec. 18, 1963, 77 Stat. 408, defined terms used in sections 35 to 35n of this title.
Section 35h, Pub. L. 88–210, §9, Dec. 18, 1963, 77 Stat. 410, established Advisory Committee on Vocational Education.
Section 35i, Pub. L. 88–210, §10, Dec. 18, 1963, 77 Stat. 410, covered uses of allotments obtained under other statutes.
Section 35j, Pub. L. 88–210, §12, Dec. 18, 1963, 77 Stat. 411, established Advisory Council on Vocational Education.
Section 35k, Pub. L. 88–210, §13, Dec. 18, 1963, 77 Stat. 412, provided for creation and funding of work-study programs.
Section 35l, Pub. L. 88–210, §14, Dec. 18, 1963, 77 Stat. 414, authorized grants for residential vocational education schools.
Section 35m, Pub. L. 88–210, §15, Dec. 18, 1963, 77 Stat. 415, authorized appropriations for work-study and residential schools.
Section 35n, Pub. L. 88–210, §16, Dec. 18, 1963, 77 Stat. 415, prohibited statutory construction authorizing Federal direction, supervision, or controls of programs under sections 35 to 35n of this title.
The President, the Vice President, the Chief Justice, and the heads of executive departments are constituted an establishment by the name of the Smithsonian Institution for the increase and diffusion of knowledge among men, and by that name shall be known and have perpetual succession with the powers, limitations, and restrictions hereinafter contained, and no other.
(R.S. §5579; Feb. 27, 1877, ch. 69, 19 Stat. 253; Mar. 12, 1894, ch. 36, 28 Stat. 41.)
R.S. §5579 derived from acts Aug. 10, 1846, ch. 178, §1, 9 Stat. 102; Mar. 20, 1871, ch. 1, 17 Stat. 1.
R.S. §§5579 to 5594 (codified as sections 41 to 46, 48, 50, 51 to 53, 54 to 57, and 67 of this title) constituted Title 73 of the Revised Statutes, entitled “The Smithsonian Institution.” A preamble to these sections was as follows: “James Smithson, esquire, of London, in the kingdom of Great Britain, having by his last will and testament given the whole of his property to the United States of America, to found, at Washington, under the name of the ‘Smithsonian Institution,’ an establishment for the increase and diffusion of knowledge among men; and the United States having, by an act of Congress, received said property and accepted said trust; therefore, for the faithful execution of said trust, according to the will of the liberal and enlightened donor.”
R.S. §5579, as originally enacted, constituted the President, the Vice-President, the Secretaries of State, the Treasury, War, and the Navy, the Postmaster-General, the Attorney-General, the Chief Justice, the Commissioner of the Patent Office, and the Governor of the District of Columbia, and such persons as they might elect honorary members, an establishment by the name of the “Smithsonian Institution,” for the purposes and with the powers specified in the section as set forth here.
1894—Act Mar. 12, 1894, substituted “the Chief Justice, and heads of executive departments” for “the Secretary of State, the Secretary of the Treasury, the Secretary of War, the Secretary of the Navy, the Postmaster-General, the Attorney General, the Chief Justice, the Commissioner of Patents, the governor of the District of Columbia, and other such persons as they may elect honorary members”.
1877—Act Feb. 27, 1877, substituted “Patents” for “Patent Office”.
Pub. L. 108–72, §1, Aug. 15, 2003, 117 Stat. 888, provided that: “This Act [enacting section 253l–8 of Title 41, Public Contracts, enacting provisions set out as notes under section 75b of this title and section 3521 of Title 5, Government Organization and Employees, and amending provisions set out as a note under section 50 of this title] may be cited as the ‘Smithsonian Facilities Authorization Act’.”
Pub. L. 89–674, §1, Oct. 15, 1966, 80 Stat. 953, provided: “That this Act [enacting section 65a of this title and repealing section 65 of this title] may be cited as the ‘National Museum Act of 1966’.”
(a) The business of the Institution shall be conducted at the city of Washington by a Board of Regents, named the Regents of the Smithsonian Institution, to be composed of the Vice President, the Chief Justice of the United States, three Members of the Senate, three Members of the House of Representatives, and nine other persons, other than Members of Congress, two of whom shall be resident in the city of Washington, and seven of whom shall be inhabitants of some State, but no two of them of the same State.
(b) Notwithstanding any other provision of law, the Board of Regents of the Smithsonian Institution may modify the number of members, manner of appointment of members, or tenure of members, of the boards or commissions under the jurisdiction of the Smithsonian Institution, other than—
(1) the Board of Regents of the Smithsonian Institution; and
(2) the boards or commissions of the National Gallery of Art, the John F. Kennedy Center for the Performing Arts, and the Woodrow Wilson International Center for Scholars.
(R.S. §5580; Mar. 12, 1894, ch. 36, 28 Stat. 41; Pub. L. 91–551, §1(a), Dec. 15, 1970, 84 Stat. 1439; Pub. L. 105–277, div. A, §101(e) [title III, §355], Oct. 21, 1998, 112 Stat. 2681–231, 2681–303.)
R.S. §5580 derived from acts Aug. 10, 1846, ch. 178, §3, 9 Stat. 103; Jan. 10, 1865, ch. 11, 13 Stat. 420; Mar. 20, 1871, ch. 1, 17 Stat. 1.
1998—Pub. L. 105–277 designated existing provisions as subsec. (a) and added subsec. (b).
1970—Pub. L. 91–551 authorized three additional persons on the Board of Regents.
1894—Act Mar. 12, 1894, struck out “the governor of the District of Columbia” after “the Chief Justice of the United States,”.
The regents to be selected shall be appointed as follows: The Members of the Senate by the President thereof; the Members of the House by the Speaker thereof; and the nine other persons by joint resolution of the Congress. The Members of the House so appointed shall serve for the term of two years; and on every alternate fourth Wednesday of December a like number shall be appointed in the same manner to serve until the fourth Wednesday in December, in the second year succeeding their appointment. The Senators so appointed shall serve during the term for which they shall hold, without re-election, their office as Senators. Vacancies, occasioned by death, resignation, or otherwise, shall be filled as vacancies in committees are filled. The regular term of service for the other nine members shall be six years; and new elections thereof shall be made by joint resolutions of Congress. Vacancies occasioned by death, resignation, or otherwise may be filled in like manner by joint resolution of Congress.
(R.S. §5581; Pub. L. 91–551, §1(b), (c), Dec. 15, 1970, 84 Stat. 1440.)
R.S. §5581 derived from act Aug. 10, 1846, ch. 178, §3, 9 Stat. 103.
1970—Pub. L. 91–551 authorized appointment of three additional members of the board by joint resolution of Congress.
The Board of Regents shall meet in the city of Washington and elect one of their number as chancellor, who shall be the presiding officer of the Board of Regents, and called the chancellor of the Smithsonian Institution, and a suitable person as Secretary of the institution, who shall also be the secretary of the Board of Regents. The board shall also elect three of their own body as an executive committee, and shall fix the time for the regular meetings of the board; and, on application of any three of the regents to the Secretary of the institution, it shall be his duty to appoint a special meeting of the Board of Regents, of which he shall give notice, by letter, to each of the members; and, at any meeting of the board, eight shall constitute a quorum to do business. Each member of the board shall be paid his necessary traveling and other actual expenses, in attending meetings of the board, which shall be audited by the executive committee, and recorded by the Secretary of the board; but his service as regent shall be gratuitous.
(R.S. §5582; Pub. L. 91–551, §1(d), Dec. 15, 1970, 84 Stat. 1440.)
R.S. §5582 derived from act Aug. 10, 1846, ch. 178, §3, 9 Stat. 103.
1970—Pub. L. 91–551 increased number of members required to constitute a quorum from five to eight.
The members of the institution may hold stated and special meetings, for the supervision of the affairs of the institution and the advice and instruction of the Board of Regents, to be called in the manner provided for in the by-laws of the institution, at which the President, and in his absence the Vice President, shall preside.
(R.S. §5585.)
R.S. §5585 derived from act Aug. 10, 1846, ch. 178, §8, 9 Stat. 103.
The Secretary of the Board of Regents shall take charge of the building and property of the institution, and shall, under their direction, make a fair and accurate record of all their proceedings, to be preserved in the institution until no longer needed in conducting current business; and shall also discharge the duties of librarian and of keeper of the museum, and may, with the consent of the Board of Regents, employ assistants.
(R.S. §5583; Oct. 25, 1951, ch. 562, §2(4), 65 Stat. 639.)
R.S. §5583 derived from act Aug. 10, 1846, ch. 178, §7, 9 Stat. 105.
1951—Act Oct. 25, 1951, inserted “until no longer needed in conducting current business”.
The Secretary of the Smithsonian Institution, subject to adequate security and other investigations as he may determine to be appropriate, and subject further to a prior determination by him that no qualified United States citizen is available for the particular position involved, is authorized to employ and compensate aliens in a scientific or technical capacity at authorized rates of compensation without regard to statutory provisions prohibiting payment of compensation to aliens.
(Pub. L. 88–549, Aug. 31, 1964, 78 Stat. 754.)
The chancellor of the Smithsonian Institution may, by an instrument in writing filed in the office of the Secretary thereof, designate and appoint a suitable person to act as Secretary of the Institution when there shall be a vacancy in said office, and whenever the Secretary shall be unable from illness, absence, or other cause to perform the duties of his office; and in such case the person so appointed may perform all the duties imposed on the Secretary by law until the vacancy shall be filled or such inability shall cease. The said chancellor may change such designation and appointment from time to time as the interests of the Institution may in his judgment require.
(May 13, 1884, ch. 44, 23 Stat. 21.)
Similar prior provisions were contained in act Jan. 24, 1879, ch. 21, 20 Stat. 264.
The Secretary and his assistants shall, respectively, receive for their services such sum as may be allowed by the Board of Regents; and shall be removable by the Board of Regents whenever, in their judgment, the interests of the institution require such removal.
(R.S. §5584.)
R.S. §5584 derived from act Aug. 10, 1846, ch. 178, §7, 9 Stat. 105.
Provisions which related to semi-annual payments on the first day of January and July have been omitted.
Section, act Oct. 2, 1888, ch. 1069, 25 Stat. 529, which required the Secretary of the Smithsonian Institution to submit to Congress annually a detailed statement of expenditures under appropriations for “International Exchanges,” “North American Ethnology,” and the “National Museum,”, 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 192 of House Document No. 103–7.
Whenever suitable arrangements can be made from time to time for their reception, all objects of art and of foreign and curious research, and all objects of natural history, plants, and geological and mineralogical specimens belonging to the United States, which may be in the city of Washington, in whosesoever custody they may be, shall be delivered to such persons as may be authorized by the Board of Regents to receive them, and shall be so arranged and classified in the building erected for the institution as best to facilitate the examination and study of them; and whenever new specimens in natural history, geology, or mineralogy are obtained for the museum of the institution, by exchanges of duplicate specimens, which the Regents may in their discretion make, or by donation, which they may receive, or otherwise, the Regents shall cause such new specimens to be appropriately classed and arranged. The minerals, books, manuscripts, and other property of James Smithson, which have been received by the Government of the United States, shall be preserved separate and apart from other property of the institution.
(R.S. §5586.)
R.S. §5586 derived from act Aug. 10, 1846, ch. 178, §6, 9 Stat. 105.
Pub. L. 111–11, title XV, §15102, Mar. 30, 2009, 123 Stat. 1456, provided that:
“(a)
“(b)
Pub. L. 108–331, Oct. 16, 2004, 118 Stat. 1281, as amended by Pub. L. 110–341, §1(2), Oct. 3, 2008, 122 Stat. 3738, provided that:
“The Board of Regents of the Smithsonian Institution is authorized to carry out construction and related activities in support of the collaborative Very Energetic Radiation Imaging Telescope Array System (VERITAS) project at the Fred Lawrence Whipple Observatory Base Camp on Mount Hopkins, Arizona, or other similar location.
“There is authorized to be appropriated $1,000,000 for fiscal year 2005 to carry out section 1.”
Pub. L. 107–117, div. B, §701, Jan. 10, 2002, 115 Stat. 2311, provided that:
“(a)
“(b)
“(1) pieces of the World Trade Center and the Pentagon;
“(2) still and video images made by private individuals and the media;
“(3) personal narratives of survivors, rescuers, and government officials; and
“(4) other artifacts, recordings, and testimonials that the Secretary of the Smithsonian Institution determines have lasting historical significance.
“(c)
Pub. L. 106–383, Oct. 27, 2000, 114 Stat. 1459, provided that:
“The Board of Regents of the Smithsonian Institution is authorized to plan, design, construct, and equip laboratory, administrative, and support space to house base operations for the Smithsonian Astrophysical Observatory Submillimeter Array located on Mauna Kea at Hilo, Hawaii.
“There are authorized to be appropriated to the Board of Regents of the Smithsonian Institution to carry out this Act, $2,000,000 for fiscal year 2001, and $2,500,000 for fiscal year 2002, which shall remain available until expended.”
Pub. L. 105–178, title I, §1214(b), June 9, 1998, 112 Stat. 204, provided that:
“(1)
“(2)
“(A) for transportation-related exhibitions, exhibits, and educational outreach programs;
“(B) to enhance the care and protection of the Nation's collection of transportation-related artifacts;
“(C) to acquire historically significant transportation-related artifacts; and
“(D) to support research programs within the Smithsonian Institution that document the history and evolution of transportation, in cooperation with other museums in the United States.
“(3)
“(4)
Pub. L. 105–78, title VII, Nov. 13, 1997, 111 Stat. 1524, known as the National Health Museum Development Act, which provided that the National Health Museum would be located on or near the Mall, established the National Health Museum Commission and its duties, including submission of a report to the President and Congress, provided that all Commission activities would be administered in accordance with the Federal Advisory Committee Act, provided for compensation of Commission members who were not officers or employees of the U.S., appropriated funds, and specified the Commission would terminate 60 days after submission of the report, was repealed, except for section 702, by Pub. L. 107–303, title III, §303, Nov. 27, 2002, 116 Stat. 2361. Section 702 of Pub. L. 105–78 amended section 1067 of Pub. L. 103–337, set out as a note under section 176 of Title 10, Armed Forces.
Pub. L. 103–151, Nov. 24, 1993, 107 Stat. 1515, provided that:
“The Board of Regents of the Smithsonian Institution is authorized to plan, design, and construct the West Court of the National Museum of Natural History building.
“No appropriated funds may be used to pay any expense of the planning, design, and construction authorized by section 1.”
Pub. L. 101–455, Oct. 24, 1990, 104 Stat. 1067, as amended by Pub. L. 103–98, §1(a), Oct. 6, 1993, 107 Stat. 1015, provided that:
“The Board of Regents of the Smithsonian Institution is authorized to plan, design, construct, and equip approximately 80,000 square feet of space in the East Court of the National Museum of Natural History building.
“There is authorized to be appropriated to the Smithsonian Institution for fiscal year 1991 and succeeding fiscal years not to exceed $30,000,000 to carry out this Act.”
[Section 1(b) of Pub. L. 103–98 provided that: “The amendment made by subsection (a) [amending section 2 of Pub. L. 101–455, set out above] shall take effect as of October 24, 1990.”]
Pub. L. 111–11, title XV, §15101, Mar. 30, 2009, 123 Stat. 1456, provided that:
“(a)
“(b)
Pub. L. 99–617, §1, Nov. 6, 1986, 100 Stat. 3488, provided that:
“(a)
“(b)
“(c)
“(d)
Pub. L. 99–423, Sept. 30, 1986, 100 Stat. 963, provided: “That the Board of Regents of the Smithsonian Institution is authorized to plan and construct facilities for the Smithsonian Astrophysical Observatory and the Smithsonian Tropical Research Institute.
“
“(a) $4,500,000 for the Smithsonian Astrophysical Observatory; and
“(b) $11,100,000 for the Smithsonian Tropical Research Institute.
“
Pub. L. 98–73, Aug. 11, 1983, 97 Stat. 406, provided: “That the Smithsonian Institution is authorized to purchase land in Santa Cruz County, Arizona, for the permanent headquarters of the Fred Lawrence Whipple Observatory.
Pub. L. 97–203, June 24, 1982, 96 Stat. 129, provided: “That the Board of Regents of the Smithsonian Institution is authorized to construct a building for the National Museum of African Art and a center for Eastern art together with structures for related educational activities in the area south of the original Smithsonian Institution Building adjacent to Independence Avenue at Tenth Street Southwest, in the city of Washington.
Pub. L. 96–36, July 20, 1979, 93 Stat. 94, provided: “That the Board of Regents of the Smithsonian Institution is authorized to plan for the development of the area south of the original Smithsonian Institution Building adjacent to Independence Avenue at Tenth Street, Southwest, in the city of Washington.
Pub. L. 111–11, title XV, §15103, Mar. 30, 2009, 123 Stat. 1456, provided that:
“(a)
“(b)
Pub. L. 94–98, Sept. 19, 1975, 89 Stat. 480, as amended by Pub. L. 95–569, Nov. 2, 1978, 92 Stat. 2444; Pub. L. 108–72, §2, Aug. 15, 2003, 117 Stat. 888, provided that: “The Regents of the Smithsonian Institution are authorized to prepare plans for, and to construct, museum support facilities to be used for (1) the care, curation, conservation, deposit, preparation, and study of the national collections of scientific, historic, and artistic objects, specimens, and artifacts; (2) the related documentation of such collections of the Smithsonian Institution; and (3) the training of museum conservators. No appropriation shall be made to construct the facilities authorized by this Act until the Committee on Public Works and Transportation of the House of Representatives and the Committee on Rules and Administration of the Senate, by resolution approve the final plans and specifications of such facilities.
“
“
“
“(a)
“(b)
“(1) $2,000,000 for fiscal year 2003;
“(2) $10,000,000 for fiscal year 2004; and
“(3) such sums as are necessary for each of fiscal years 2005 through 2008.”
[Amendment of section 3 by Pub. L. 95–569 effective Oct. 1, 1979.]
The National Museum was not created by any express statutory provision for that purpose. It was first mentioned in an appropriation for postage for “the National Museum in the Smithsonian Institution,” contained in act June 20, 1874, ch. 328, §1, 18 Stat. 103. An appropriation for a building for the use of the National Museum was made by act Mar. 3, 1879, ch. 182, §1, 20 Stat. 397, and annual appropriations have continuously been made for expenses of heating, etc., such building.
Res. Feb. 28, 1922, ch. 86, 42 Stat. 399, authorized Secretary of State to transfer to custody of Secretary of Institution for safekeeping and exhibition in National Museum the sword of George Washington and the staff of Benjamin Franklin, presented by Samuel T. Washington, and the sword of Andrew Jackson, presented by family of General Robert Armstrong.
Quartermaster-General and his officers were required to receive and transport property for National Museum by a provision of act July 5, 1884, ch. 217, 23 Stat. 107.
The Smithsonian Institution is authorized to include in its estimates of appropriations such sums as may be needful for the preservation and maintenance of the John Gellatly art collection.
(June 5, 1929, ch. 9, 46 Stat. 5.)
The Regents shall make, from the interest of the fund, an appropriation, not exceeding an average of $25,000 annually, for the gradual formation of a library composed of valuable works pertaining to all departments of human knowledge.
(R.S. §5587.)
R.S. §5587 derived from act Aug. 10, 1846, ch. 178, §8, 9 Stat. 105.
Under provisions of R.S. §94 and act Mar. 3, 1875, ch. 179, 18 Stat. 512, the Joint Committee on the Library of Congress was authorized to extend the use of the Library to the Regents of the Smithsonian Institution. These provisions were not classified to the Code, being rendered superfluous by a general declaration of public policy by Congress, by a joint resolution adopted Apr. 12, 1892, 27 Stat. 395, to the effect that facilities for study and research in the Library of Congress, the National Museum, and similar institutions shall be afforded investigators, students, etc., in the several states and territories as well as in the District of Columbia.
The site and lands selected for buildings for the Smithsonian Institution shall be deemed appropriated to the institution, and the record of the description of such site and lands, or a copy thereof, certified by the chancellor and Secretary of the Board of Regents, shall be received as evidence in all courts of the extent and boundaries of the lands appropriated to the institution.
(R.S. §5588.)
R.S. §5588 derived from act Aug. 10, 1846, ch. 178, §4, 9 Stat. 104.
All laws for the protection of public property in the city of Washington shall apply to, and be in force for, the protection of the lands, buildings, and other property of the Smithsonian Institution. All moneys recovered by or accruing to, the institution shall be paid into the Treasury of the United States, to the credit of the Smithsonian bequest, and separately accounted for.
(R.S. §5589.)
R.S. §5589 derived from act Aug. 10, 1846, ch. 178, §5, 9 Stat. 104.
Appropriations are authorized for the maintenance of the Astrophysical Observatory and the making of solar observations at high altitudes; for repairs and alterations of buildings and grounds occupied by the Smithsonian Institution in the District of Columbia and elsewhere; and for preparation of manuscripts, drawings, and illustrations for publications.
(Aug. 22, 1949, ch. 494, §2, 63 Stat. 623.)
So much of the property of James Smithson as has been received in money, and paid into the Treasury of the United States, being the sum of $541,379.63, shall be lent to the United States Treasury and invested in public debt securities with maturities requested by the Smithsonian Institution bearing interest at rates determined by the Secretary of the Treasury, based upon current market yields on outstanding marketable obligations of the United States of comparable maturities, and this interest is hereby appropriated for the perpetual maintenance and support of the Smithsonian Institution; and all expenditures and appropriations to be made, from time to time, to the purposes of the Institution shall be exclusively from the accruing interest, and not from the principal of the fund. All the moneys and stocks which have been, or may hereafter be, received into the Treasury of the United States, on account of the fund bequeathed by James Smithson, are hereby pledged to refund to the Treasury of the United States the sums hereby appropriated.
(R.S. §5590; Pub. L. 97–199, §1, June 22, 1982, 96 Stat. 121.)
R.S. §5590 derived from acts Aug. 10, 1846, ch. 178, §2, 9 Stat. 102; Feb. 5, 1867, ch. 34, §2, 14 Stat. 391.
1982—Pub. L. 97–199 substituted “and invested in public debt securities with maturities requested by the Smithsonian Institution bearing interest at rates determined by the Secretary of the Treasury, based upon current market yields on outstanding marketable obligations of the United States of comparable maturities, and this interest is hereby” for “, at 6 per centum per annum interest; and 6 per centum interest on the trust-fund and residuary legacy received into the United States Treasury, payable in half-yearly payments, on the first of January and July in each year, is”, substituted “purposes of the Institution” for “purposes of the institution”, and substituted “are hereby pledged” for “are pledged”.
Section 2 of Pub. L. 97–199 provided that: “The amendment made by the first section [amending this section] shall apply with respect to fiscal years beginning after September 30, 1982.”
The Secretary of the Treasury is authorized and directed to receive into the Treasury, on the same terms as the original bequest of James Smithson, such sums as the Regents may, from time to time, see fit to deposit, not exceeding, with the original bequest, the sum of $1,000,000. This shall not operate as a limitation on the power of the Smithsonian Institution to receive money or other property by gift, bequest, or devise, and to hold and dispose of the same in promotion of the purposes thereof.
(R.S. §5591; Mar. 12, 1894, ch. 36, 28 Stat. 41.)
R.S. §5591 derived from act Feb. 5, 1867, ch. 34, §1, 14 Stat. 391.
1894—Act Mar. 12, 1894, made limitation on deposits into the Treasury inapplicable to receipt of gifts, bequests and devises and dispositions of money or other property.
The Regents are authorized to make such disposal of any other moneys which have accrued, or shall hereafter accrue, as interest upon the Smithsonian fund, not herein appropriated, or not required for the purposes herein provided, as they shall deem best suited for the promotion of the purpose of the testator.
(R.S. §5592.)
R.S. §5592 derived from act Aug. 10, 1846, ch. 178, §9, 9 Stat. 105.
Whenever money is required for the payment of the debts or performance of the contracts of the institution, incurred or entered into in conformity with the provisions of sections 41 to 46, 48, 50, 51 to 53, 54 to 57, and 67 of this title, or for making the purchases and executing the objects authorized by said sections, the Board of Regents, or the executive committee thereof, may certify to the chancellor and secretary of the board that such sum of money is required, whereupon they shall examine the same, and, if they shall approve thereof, shall certify the same to the proper officer of the Treasury for payment. The board shall submit to Congress, at each session thereof, a report of the operations, expenditures, and condition of the institution.
(R.S. §5593.)
R.S. §5593 derived from act Aug. 10, 1846, ch. 178, §3, 9 Stat. 103.
For termination, effective May 15, 2000, of provisions in this section relating to submitting a report to Congress at each session of 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 page 192 of House Document No. 103–7.
Section, act Mar. 3, 1899, ch. 424, §1, 30 Stat. 1085, which required that the salaries of officers and employees paid from appropriations under the Smithsonian Institution be reported to Congress annually, 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 192 of House Document No. 103–7.
All collections of rocks, minerals, soils, fossils, and objects of natural history, archaeology, and ethnology, made by the National Ocean Survey, the United States Geological Survey, or by any other parties for the Government of the United States, when no longer needed for investigations in progress shall be deposited in the National Museum.
(Mar. 3, 1879, ch. 182, §1, 20 Stat. 394; 1965 Reorg. Plan No. 2, eff. July 13, 1965, 30 F.R. 8819, 79 Stat. 1318; 1970 Reorg. Plan No. 4, eff. Oct. 3, 1970, 35 F.R. 15627, 84 Stat. 2090; Pub. L. 102–154, title I, Nov. 13, 1991, 105 Stat. 1000.)
Words “Coast and Interior Survey” appearing in act Mar. 3, 1879, were in prior editions of the Code changed to “Coast and Geodetic Survey.” Congress never created a Coast and Interior Survey. In a communication dated Nov. 6, 1940, the Director of the Geological Survey explained that the words “Coast and Interior Survey” were inadvertently incorporated upon authority of report contained in Senate Misc. Doc. No. 9, 45th Congress, 3d Session, which recommended the “Coast and Geodetic Survey” be changed to “United States Coast and Interior Survey” and an organization be created in the Interior Department to be known as the “United States Geological Survey.” Congress adopted only the latter suggestion.
Coast and Geodetic Survey consolidated with National Weather Bureau in 1965 to form Environmental Science Services Administration by Reorg. Plan No. 2 of 1965, eff. July 13, 1965, 30 F.R. 8819, 79 Stat. 1318. Environmental Science Services Administration abolished in 1970 and its personnel, property, records, etc., transferred to National Oceanic and Atmospheric Administration by Reorg. Plan No. 4 of 1970, eff. Oct. 3, 1970, 35 F.R. 15627, 84 Stat. 2090. By order of Acting Associate Administrator of National Oceanic and Atmospheric Administration, 35 F.R. 19249, Dec. 19, 1970, Coast and Geodetic Survey redesignated National Ocean Survey. See notes set out under section 311 of Title 15, Commerce and Trade.
“United States Geological Survey” substituted in text for “Geological Survey” pursuant to provision of title I of Pub. L. 102–154, set out as a note under section 31 of Title 43, Public Lands.
Establishment of the National Museum, see note set out under section 50 of this title.
Pub. L. 96–441, §2, Oct. 13, 1980, 94 Stat. 1884, provided that: “The bureau of the Smithsonian Institution known as the Museum of History and Technology and so referred to in the Act entitled ‘An Act to authorize the construction of a building for a Museum of History and Technology for the Smithsonian Institution, including the preparation of plans and specifications, and all other work incidental thereto’, approved June 28, 1955 (20 U.S.C. 59 note), shall be known as the ‘National Museum of American History’.”
For provision deeming references to the Museum of History and Technology in laws and regulations to be references to the National Museum of American History, see section of 3 of Pub. L. 96–441, set out as a note under section 71 of this title.
Act June 28, 1955, ch. 201, 69 Stat. 189, authorized construction of a building for a Museum of History and Technology, which was redesignated the National Museum of American History, for the use of the Smithsonian Institution, at a cost not to exceed $36,000,000.
The Secretary of the Army is authorized to furnish to the National Museum, for exhibition, upon request therefor by the administrative head thereof, such articles of arms, materiel, equipment, or clothing as have been issued from time to time to the United States Army, or which have been or may hereafter be produced for the United States Army, and which are objects of general interest or of foreign or curious research, provided that such articles can be spared.
(Mar. 4, 1921, ch. 166, §1, 41 Stat. 1438; July 26, 1947, ch. 343, title II, §205(a), 61 Stat. 501; Oct. 31, 1951, ch. 654, §3(4), 65 Stat. 708.)
1951—Act Oct. 31, 1951, struck out “are surplus or” after “articles”.
Department of War designated Department of the Army and title of Secretary of War changed to Secretary of the Army by section 205(a) of act July 26, 1947, ch. 343, title II, 61 Stat. 501. Section 205(a) of act July 26, 1947, was repealed by section 53 of act Aug. 10, 1956, ch. 1041, 70A Stat. 641. Section 1 of act Aug. 10, 1956, enacted “Title 10, Armed Forces” which in sections 3010 to 3013 continued Department of the Army under administrative supervision of Secretary of the Army.
For transfer of certain personal property and personal property functions, insofar as they pertain to the Air Force, from Secretary of the Army to Secretary of the Air Force, see Secretary of Defense Transfer Order No. 39 [§2vv], eff. May 18, 1949.
Section 61, act Mar. 3, 1879, ch. 182, §1, 20 Stat. 397, required archives, records and materials relating to Indians of North America to be turned over from Geographical and Geological Survey to Smithsonian Institution for purposes of completion of collection of information and its publication.
Section 62, act Aug. 1, 1914, ch. 223, §1, 38 Stat. 661, authorized Secretary of Commerce to transfer instruments of historical value of the Coast and Geodetic Survey [the National Ocean Survey] to Smithsonian Institution.
Section 63, act June 5, 1920, ch. 235, §1, 41 Stat. 930, related to transfer, by Secretary of Commerce, of Coast and Geodetic Survey [the National Ocean Survey] instruments of historical value, to educational institutions and museums.
Section 64, act Mar. 3, 1883, ch. 143, 22 Stat. 629, related to distribution of specimens of National Museum and Bureau of Fisheries to schools and colleges.
Section, act July 7, 1884, ch. 332, 23 Stat. 214, required Director of National Museum to report annually to Congress on progress of the Museum during the year and its present condition. See section 65a of this title.
The Director of the National Museum under the direction of the Secretary of the Smithsonian Institution shall—
(1) cooperate with museums and their professional organizations in a continuing study of museum problems and opportunities, both in the United States and abroad;
(2) prepare and carry out programs by grant, contract, or directly for training career employees in museum practices in cooperation with museums, their professional organizations, and institutions of higher education either at the Smithsonian Institution or at the cooperating museum, organization, or institutions;
(3) prepare and distribute significant museum publications;
(4) perform research on, and otherwise contribute to, the development of museum techniques, with emphasis on museum conservation and the development of a national institute for museum conservation;
(5) cooperate with departments and agencies of the Government of the United States operating, assisting, or otherwise concerned with museums; and
(6) report annually to the Congress on progress in these activities.
There are hereby authorized to be appropriated to the Smithsonian Institution for the fiscal year 1981, the sum of $803,000, and for the fiscal year 1982, the sum of $1,000,000.
(Pub. L. 89–674, §2, Oct. 15, 1966, 80 Stat. 953; Pub. L. 91–629, §§1, 2 Dec. 31, 1970, 84 Stat. 1875; Pub. L. 93–345, §§1, 2, July 12, 1974, 88 Stat. 339; Pub. L. 94–336, July 1, 1976, 90 Stat. 795; Pub. L. 96–268, June 13, 1980, 94 Stat. 485.)
1980—Subsec. (b). Pub. L. 96–268 substituted provisions authorizing appropriations of $803,000 for fiscal year 1981 and $1,000,000 for fiscal year 1982 for provisions which had authorized appropriations of $1,000,000 each year for fiscal years 1978, 1979, and 1980.
1976—Subsec. (b). Pub. L. 94–336 substituted provisions authorizing the appropriation of $1,000,000 each year for fiscal years 1978, 1979, and 1980, for provisions under which there had been authorized to be appropriated whatever sums as might be necessary to carry out the purposes of the section, with a proviso that no more than $1,000,000 could be appropriated annually through fiscal year 1977, of which no less than $200,000, was to be allocated and used to carry out subsec. (a)(4) of this section.
1974—Subsec. (a)(4). Pub. L. 93–345, §1, inserted “, with emphasis on museum conservation and the development of a national institute for museum conservation” after “museum techniques”.
Subsec. (b). Pub. L. 93–345, §2, substituted provisions limiting to $1,000,000 the amount which may be appropriated annually through fiscal year 1977, with no less than $200,000 annually to be allocated and used to carry out the purposes of subsection (a)(4) of this section for provisions limiting to $1,000,000 the amount which could be appropriated annually through fiscal year 1974, of which $300,000 annually had to be allocated and used according to the formula of 331/3 per centum for purposes of subsec. (a)(2), 331/3 per centum for assistance to museums under section 954(c) of this title, and 331/3 per centum for assistance to museums under section 956(c) of this title.
1970—Subsec. (a)(2). Pub. L. 91–629, §2, inserted provisions that programs be prepared and carried out by grant, contract, or directly and which authorized the training of career employees in museum practices in cooperation with institutions of higher education, and substituted provisions which authorized training programs to be conducted either at the Smithsonian Institution, or at the cooperating museum, organization, or institutions, for provisions which authorized such programs to be conducted at the best locations.
Subsec. (b). Pub. L. 91–629, §1, substituted provisions which authorized to be appropriated such sums as necessary to carry out the purposes of this section, with no more than $1,000,000 to be appropriated annually through fiscal year 1974, of which $300,000, annually, to be allocated in the enumerated manner, for provisions which authorized to be appropriated to carry out this section, not to exceed $200,000 for the fiscal year ending June 30, 1968, $250,000 for the fiscal years ending June 30, 1969, and June 30, 1970, and $300,000 for the fiscal year ending June 30, 1971, and in each subsequent fiscal year, only such sums as the Congress hereafter authorizes by law.
For termination, effective May 15, 2000, of reporting provisions in subsec. (a)(6) of this section, 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 page 192 of House Document No. 103–7.
Section, act Mar. 3, 1915, ch. 75, §1, 38 Stat. 839, related to exchange of typewriters and adding machines.
Congress may alter, amend, add to, or repeal any of the provisions of sections 41 to 46, 48, 50, 51 to 53, and 54 to 57, of this title; but no contract or individual right made or acquired under such provisions shall be thereby divested or impaired.
(R.S. §5594.)
R.S. §5594 derived from act Aug. 10, 1846, ch. 178, §11, 9 Stat. 106.
Section, act Feb. 11, 1927, ch. 104, §1, 44 Stat. 1081, related to advertisements for proposals for purchases and services.
The Secretary of the Smithsonian Institution is hereby authorized to cooperate with any State, educational institution, or scientific organization in the United States to continue independently or in cooperation anthropological researches among the American Indians and the natives of lands under the jurisdiction or protection of the United States and the excavation and preservation of archaeological remains.
(Apr. 10, 1928, ch. 335, §1, 45 Stat. 413; Aug. 22, 1949, ch. 494, §1, 63 Stat. 623.)
1949—Act Aug. 22, 1949, substituted “to continue independently or in cooperation anthropological” for “for continuing ethnological” and inserted “and the natives of lands under the jurisdiction or protection of the United States”.
There is authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $20,000, which shall be available until expended for the purposes stated in section 69 of this title: Provided, That at such time as the Smithsonian Institution is satisfied that any State, educational institution, or scientific organization in any of the United States is prepared to contribute to such investigation and when, in its judgment such investigation shall appear meritorious, the Secretary of the Smithsonian Institution may direct that an amount from this sum equal to that contributed by such State, educational institution, or scientific organization, not to exceed $2,000, to be expended from such sum in any one State during any calendar year, be made available for cooperative investigation: Provided further, That all such cooperative work and division of the result thereof shall be under the direction of the Secretary of the Smithsonian Institution: Provided further, That where lands are involved which are under the jurisdiction of the Bureau of Indian Affairs or the National Park Service, cooperative work thereon shall be under such regulations and conditions as the Secretary of the Interior may provide.
(Apr. 10, 1928, ch. 335, §2, 45 Stat. 413.)
The area bounded by Seventh Street, Constitution Avenue, Fourth Street, and North Mall Drive, Northwest, in the District of Columbia, is appropriated to the Smithsonian Institution as a site for a National Gallery of Art. The Smithsonian Institution is authorized to permit the A. W. Mellon Educational and Charitable Trust (hereinafter referred to as the donor) to construct on said site for the Smithsonian Institution a building to be designated the National Gallery of Art, and to remove any existing structure and landscape the grounds within said area. The adjoining area bounded by Fourth Street, Pennsylvania Avenue, Third Street, and North Mall Drive, Northwest, in the District of Columbia, is reserved as a site for future additions to the National Gallery of Art. The project shall be in accordance with plans and specifications approved by the Commission of Fine Arts.
(Mar. 24, 1937, ch. 50, §1, 50 Stat. 51.)
Pub. L. 106–385, Oct. 27, 2000, 114 Stat. 1463, provided that:
“(a)
“(b)
“Section 1 shall take effect on the day after the date of enactment of this Act [Oct. 27, 2000].”
Pub. L. 96–441, §§1, 3, 4, Oct. 13, 1980, 94 Stat. 1884, provided: “That the bureau of the Smithsonian Institution designated as the National Collection of Fine Arts by section 6(c) of the joint resolution entitled ‘Joint Resolution providing for the construction and maintenance of a National Gallery of Art’, approved March 24, 1937 (20 U.S.C. 71 note), shall be known as the ‘National Museum of American Art’.
Act Mar. 24, 1937, ch. 50, 50 Stat. 51, sections 1 to 5 of which are incorporated as sections 71, 72 to 74, and 75 of this title, provided in section 6(c) that: “The existing bureau of the Smithsonian Institution now designated as a national gallery of art shall hereafter be known as the National Collection of Fine Arts.”
Pub. L. 98–523, Oct. 19, 1984, 98 Stat. 2433, provided: “That at such time as it is declared to be excess property pursuant to section 2(d) of this Act, the Administrator of General Services (hereinafter in this Act referred to as the ‘Administrator’) is authorized to transfer to the Smithsonian Institution, in accordance with section 202 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483) [now 40 U.S.C. 521–527, 529], without reimbursement, and for use by the Smithsonian Institution for certain art galleries and related functions, the General Post Office Building with any attached underground structures and the site of such building, located between Seventh and Eighth Streets Northwest and E and F Streets Northwest, in the District of Columbia.
“(b) The Administrator and the Chairman shall each report separately in writing to the Committees on Environment and Public Works, Finance, Rules and Administration, and Governmental Affairs [now Committee on Homeland Security and Governmental Affairs] of the Senate and to the Committees on Public Works and Transportation, Ways and Means, House Administration, and Government Operations of the House of Representatives not later than sixty days after the date of enactment of this Act [Oct. 19, 1984] and every thirty days thereafter on the status of the relocation required by this section.
“(c) During the period in which the Commission and the United States Postal Service continue to occupy the General Post Office Building referred to in the first section of this Act, the Administrator shall maintain such building in order to prevent its deterioration and to assure that conditions therein are safe and the building is presentable and suitable to the normal operations of the Commission and such Service.
“(d) Upon accomplishment of the relocation required by subsection (a) of this section, the Administrator shall declare the property referred to in the first section of this Act to be excess property as defined in section 3 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 472) [now 40 U.S.C. 102].
The Trustees of the National Gallery of Art are authorized to construct within the area reserved as a site for future additions by the third sentence of section 71 of this title one or more buildings to serve as additions to the National Gallery of Art. The cost of constructing any such building shall be paid from trust funds administered by such Trustees. The plans and specifications for any such building shall be approved by the Commission of Fine Arts and the National Capital Planning Commission.
(Pub. L. 90–376, §1, July 5, 1968, 82 Stat. 286.)
Section was not enacted as part of act Mar. 24, 1937, ch. 50, 50 Stat. 51, which comprises this subchapter.
Section 4 of Pub. L. 90–376 provided that: “The Commissioner [Mayor] of the District of Columbia is authorized to transfer to the United States such jurisdiction as the District of Columbia may have over any of the property within the area referred to in the first section of this Act [this section].”
Section 5 of Pub. L. 90–376 provided that: “If any public utility (whether privately or publicly owned) located within the area referred to in the first section of this Act [this section] is required to be relocated or protected by reason of the construction within such area of any addition to the National Gallery of Art, the cost of such relocation or protection shall be paid from trust funds administered by the Trustees of the National Gallery of Art.”
Any building constructed under authority of section 71a of this title shall, upon completion, be a part of the National Gallery of Art.
(Pub. L. 90–376, §2, July 5, 1968, 82 Stat. 286.)
Section was not enacted as part of act Mar. 24, 1937, ch. 50, 50 Stat. 51, which comprises this subchapter.
There is established in the Smithsonian Institution a bureau, which shall be directed by a board to be known as the Trustees of the National Gallery of Art, whose duty it shall be to maintain and administer the National Gallery of Art and site thereof and to execute such other functions as are vested in the board by this subchapter. The board shall be composed as follows: The Chief Justice of the United States, the Secretary of State, the Secretary of the Treasury, and the Secretary of the Smithsonian Institution, ex officio; and five general trustees who shall be citizens of the United States, to be chosen as hereinafter provided. No officer or employee of the Federal Government shall be eligible to be chosen as a general trustee.
The general trustees first taking office shall be chosen by the Board of Regents of the Smithsonian Institution, subject to the approval of the donor, and shall have terms expiring one each on July 1 of 1939, 1941, 1943, 1945, and 1947, as designated by the Board of Regents. A successor shall be chosen by a majority vote of the general trustees and shall have a term expiring ten years from the date of the expiration of the term for which his predecessor was chosen, except that a successor chosen to fill a vacancy occurring prior to the expiration of such term shall be chosen only for the remainder of such term.
(Mar. 24, 1937, ch. 50, §2, 50 Stat. 52.)
Pub. L. 95–426, title II, §205, Oct. 7, 1978, 92 Stat. 975, as amended by Pub. L. 97–241, title III, §303(b), Aug. 24, 1982, 96 Stat. 291, provided that: “The Secretary of State may delegate to the Director of the United States Information Agency, with the consent of the Director, the functions vested in the Secretary by section 2(a) of the joint resolution entitled ‘Joint Resolution providing for the construction and maintenance of a National Gallery of Art’, approved March 24, 1937 (20 U.S.C. 72(a)).”
[For abolition of United States Information Agency (other than Broadcasting Board of Governors and International Broadcasting Bureau), transfer of functions, and treatment of references thereto, see sections 6531, 6532, and 6551 of Title 22, Foreign Relations and Intercourse.]
Upon completion of the National Gallery of Art, the board shall accept for the Smithsonian Institution as a gift from the donor a collection of works of art which shall be housed and exhibited in the National Gallery of Art.
(Mar. 24, 1937, ch. 50, §3, 50 Stat. 52.)
The faith of the United States is pledged that, on completion of the National Gallery of Art by the donor in accordance with the terms of this subchapter and the acquisition from the donor of the collection of works of art, the United States will provide such funds as may be necessary for the upkeep of the National Gallery of Art and the administrative expenses and costs of operation thereof, including the protection and care of works of art acquired by the board, so that the National Gallery of Art shall be at all times properly maintained and the works of art contained therein shall be exhibited regularly to the general public free of charge. For these purposes, and to provide, prior to the completion of the National Gallery of Art, for the protection and care of the works of art in said Gallery and for administrative and operating expenses and equipment preparatory to the opening of the Gallery to the public, there are authorized to be appropriated such sums as may be necessary.
The board is authorized to accept for the Smithsonian Institution and to hold and administer gifts, bequests, or devises of money, securities, or other property of whatsoever character for the benefit of the National Gallery of Art. Unless otherwise restricted by the terms of the gift, bequest, or devise, the board is authorized to sell or exchange and to invest or reinvest in such investments as it may determine from time to time the moneys, securities, or other property composing trust funds given, bequeathed, or devised to or for the benefit of the National Gallery of Art. The income as and when collected shall be placed in such depositaries as the board shall determine and shall be subject to expenditure by the board.
The board shall appoint and fix the compensation and duties of a director, an assistant director, a secretary, and a chief curator of the National Gallery of Art, and of such other officers and employees of the National Gallery of Art as may be necessary for the efficient administration of the functions of the board. Such director, assistant director, secretary, and chief curator shall be compensated from trust funds available to the board for the purpose, and their appointment and salaries shall not be subject to the civil-service laws or chapter 51 and subchapter III of chapter 53 of title 5. The director, assistant director, secretary, and chief curator shall be well qualified by experience and training to perform the duties of their office and the original appointment to each such office shall be subject to the approval of the donor.
The actions of the board, including any payment made or directed to be made by it from any trust funds, shall not be subject to review by any officer or agency other than a court of law.
(Mar. 24, 1937, ch. 50, §4, 50 Stat. 52; Apr. 13, 1939, ch. 61, 53 Stat. 577; Oct. 28, 1949, ch. 782, title XI, §1106(a), 63 Stat. 972.)
In subsec. (c), “chapter 51 and subchapter III of chapter 53 of title 5” substituted for “the Classification Act of 1949, as amended” on authority of Pub. L. 89–554, §7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.
1949—Act Oct. 28, 1949, substituted “Classification Act of 1949” for “Classification Act of 1923”.
1939—Subsec. (a). Act Apr. 13, 1939, inserted in last sentence “and to provide, prior to the completion of the National Gallery of Art, for the protection and care of the works of art in said Gallery and for administrative and operating expenses and equipment preparatory to the opening of the Gallery to the public”.
Act Oct. 28, 1949, ch. 782, cited as a credit to this section, was repealed (subject to a savings clause) by Pub. L. 89–554, Sept. 6, 1966, §8, 80 Stat. 632, 655.
The Secretary of the Treasury is authorized and directed to receive into the Treasury from time to time as a permanent loan by the Board of Trustees of the National Gallery of Art to the United States sums in cash of not to exceed $5,000,000 in the aggregate, and to pay interest on the principal amount of such loan at a rate which is the higher of the rate of 4 per centum per annum or a rate which is .25 percentage points less than a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding long-term marketable obligations of the United States, adjusted to the nearest one-eighth of 1 per centum, payable semiannually. Such interest is permanently appropriated for payment to the Board of Trustees of the National Gallery of Art.
(Apr. 10, 1943, ch. 46, 57 Stat. 62; Pub. L. 94–418, Sept. 21, 1976, 90 Stat. 1278.)
Section was not enacted as part of act Mar. 24, 1937, ch. 50, 50 Stat. 51, which comprises this subchapter.
1976—Pub. L. 94–418 inserted provision authorizing alternate interest rate to existing interest rate of 4 per centum per annum.
The board is authorized to adopt an official seal which shall be judicially noticed and to make such bylaws, rules, and regulations, as it deems necessary for the administration of its functions under this subchapter, including, among other matters, bylaws, rules, and regulations relating to the acquisition, exhibition, and loan of works of art, the administration of its trust funds, and the organization and procedure of the board. The board may function notwithstanding vacancies, and three members of the board shall constitute a quorum for the transaction of business.
In order that the collection of the National Gallery of Art shall always be maintained at a high standard and in order to prevent the introduction therein of inferior works of art, no work of art shall be included in the permanent collection of the National Gallery of Art unless it be of similar high standard of quality to those in the collection acquired from the donor.
The board shall have all the usual powers and obligations of a trustee in respect of all trust funds administered by it and all works of art acquired by it.
The board shall submit to the Smithsonian Institution an annual report of its operations under this subchapter, including a detailed statement of all acquisitions and loans of works of art and of all public and private moneys received and disbursed.
(Mar. 24, 1937, ch. 50, §5, 50 Stat. 53.)
For the purposes of this subchapter—
(a) The term “Board” means the Board of Regents of the Smithsonian Institution.
(b) The term “Commission” means the National Portrait Gallery Commission as provided for in this subchapter.
(c) The term “Gallery” means the National Portrait Gallery established by this subchapter.
(d) The term “gift” includes a gift, bequest, or devise, whether outright or in trust, and any legal instrument by which the gift is effected.
(e) The term “portraiture” includes portraits and reproductions thereof made by any means or process, whether invented or developed heretofore or hereafter.
(Pub. L. 87–443, §2, Apr. 27, 1962, 76 Stat. 62; Pub. L. 94–209, Feb. 5, 1976, 90 Stat. 30.)
1976—Subsec. (e). Pub. L. 94–209 substituted “includes portraits and reproductions thereof made by any means or process, whether invented or developed heretofore or hereafter” for “for purposes of this subchapter shall mean painted or sculptured likenesses”.
Pub. L. 87–443, §1, provided: “That this Act [enacting this subchapter] may be cited as the ‘National Portrait Gallery Act’.”
(a) There is established in the Smithsonian Institution a bureau which shall be known as the National Portrait Gallery. The functions of such bureau shall be those authorized by this subchapter. The use for the purposes of the Gallery of any part of the building transferred to the Smithsonian Institution pursuant to the Act of March 28, 1958 (72 Stat. 68), is authorized.
(b) The Gallery shall function as a free public museum for the exhibition and study of portraiture and statuary depicting men and women who have made significant contributions to the history, development, and culture of the people of the United States and of the artists who created such portraiture and statuary.
(Pub. L. 87–443, §3, Apr. 27, 1962, 76 Stat. 62.)
Act of March 28, 1958, referred to in subsec. (a), is act Mar. 28, 1958, Pub. L. 85–357, 72 Stat. 68, which was not classified to the Code.
Pub. L. 108–72, §3, Aug. 15, 2003, 117 Stat. 888, provided that:
“(a)
“(1)
“(2)
“(b)
“(1) submitted by the Secretary of the Smithsonian Institution (referred to in this section as the ‘Secretary’) to the Commission of Fine Arts for comments and recommendations; and
“(2) subject to the review and approval of the National Capital Planning Commission in accordance with section 8722 of title 40, United States Code, and section 16 of the Act of June 20, 1938 (sec. 6–641.15, D.C. Official Code).
“(c)
“(1)
“(A) take into account the effect of the improvements authorized by subsection (a) on the historic character of the Patent Office Building; and
“(B) provide the Advisory Council on Historic Preservation a reasonable opportunity to comment with regard to such improvements.
“(2)
There is created the National Portrait Gallery Commission. The number, manner of appointment and tenure of the members of the Commission shall be such as the Board may from time to time prescribe. The Board may delegate to the Commission any function of the Gallery or any function of the Board with respect to the Gallery. The Board may make rules and regulations for the conduct of the affairs of the Commission and the operation of the Gallery, and to the extent and under such limitations as the Board deems advisable, the Board may delegate to the Commission the power to make such rules and regulations.
(Pub. L. 87–443, §4, Apr. 27, 1962, 76 Stat. 62.)
(a) The Board is authorized to accept for the Smithsonian Institution gifts of any property for the benefit of the Gallery.
(b) Legal title to all property (except property of the United States) held for the use or benefit of the Gallery shall be vested in the Smithsonian Institution. Subject to any limitations otherwise expressly provided by law, and, in the case of any gift, subject to any applicable restrictions under the terms of such gift, the Board is authorized to sell, exchange, or otherwise dispose of any property of whatsoever nature held by it, and to invest in, reinvest in, or purchase any property of whatsoever nature for the benefit of the National Portrait Gallery.
(Pub. L. 87–443, §5, Apr. 27, 1962, 76 Stat. 62.)
For the purpose of carrying out any function authorized by section 75b of this title, the Board may—
(1) purchase, accept, borrow, or otherwise acquire portraiture, statuary, and other items for preservation, exhibition, or study. The Board may acquire any such item on the basis of its general historical interest, its artistic merit, or the historical significance of the individual to which it relates, or any combination of any such factors. The Board may acquire period furniture and other items to enhance its displays of portraiture and statuary.
(2) preserve or restore any item acquired pursuant to paragraph (1).
(3) display, loan, store, or otherwise hold any such item.
(4) sell, exchange, donate, return, or otherwise dispose of any such item.
(Pub. L. 87–443, §6, Apr. 27, 1962, 76 Stat. 63.)
(a) The Board may appoint and fix the compensation and duties of a director of the Gallery, and his appointment and salary shall not be subject to the civil-service laws or chapter 51 and subchapter III of chapter 53 of title 5. The Board may employ such other officers and employees as may be necessary for the efficient administration, operation, and maintenance of the Gallery.
(b) The Board may delegate to the Secretary of the Smithsonian Institution, as well as to the Commission, any of its functions pursuant to subsection (a) of this section.
(Pub. L. 87–443, §7, Apr. 27, 1962, 76 Stat. 63.)
In subsec. (a), “chapter 51 and subchapter III of chapter 53 of title 5” substituted for “the Classification Act of 1949, as amended” on authority of Pub. L. 89–554, §7(b) Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.
There are authorized to be appropriated such sums as may be necessary to carry out the purposes of this subchapter.
(Pub. L. 87–443, §8, Apr. 27, 1962, 76 Stat. 63.)
Section 76, act May 17, 1938, ch. 238, §1, 52 Stat. 399, directed National Capital Park and Planning Commission to designate and President to assign a site for a building to house and display national collections of fine arts, portraits of eminent Americans, and works of artists deserving of recognition.
Section 76a, act May 17, 1938, ch. 238, §2, 52 Stat. 399, created Smithsonian Gallery of Art Commission which terminated upon approval by Regents of Smithsonian Institution of design for buildings and grounds.
The Regents are authorized to solicit and receive subscriptions of funds from private sources for the purposes specified in this subsection. Funds so received shall be placed in a special deposit account with the Treasurer of the United States, and may be expended by the Regents to meet the cost of the construction of the building, including furnishings and equipment thereof, to obtain necessary drawings and specifications, make necessary surveys and estimates of cost, defray necessary administrative expenses, and secure other needful services.
The Regents may, subject to the approval of the President, authorize the preparation of the site and the construction of the building, including approaches and landscaping of the grounds: Provided, That the Administrator of General Services shall supervise the preparation of the plans and specifications, make all necessary contracts, and supervise construction.
The name of the building shall be the Smithsonian Gallery of Art (hereinafter referred to as the “Gallery”), and it shall be under the supervision and control of the Regents and the Secretary of the Smithsonian Institution.
(May 17, 1938, ch. 238, §3, 52 Stat. 400; 1939 Reorg. Plan No. I, §§301, 303, eff. July 1, 1939, 4 F.R. 2729, 53 Stat. 1426, 1427; June 30, 1949, ch. 288, title I, §103, 63 Stat. 380.)
Functions of Federal Works Agency and of all agencies thereof, together with functions of Federal Works Administrator, transferred to Administrator of General Services, and Federal Works Agency and office of Federal Works Administrator abolished by section 103 of act June 30, 1949. See Historical and Revision Notes under section 303(b) of Title 40, Public Buildings, Property, and Works. Section 303(b) of Title 40 was amended generally by Pub. L. 109–313, §2(a)(1), Oct. 6, 2006, 120 Stat. 1734, and, as so amended, no longer relates to the Federal Works Agency and Commissioner of Public Buildings. See 2006 Amendment note under section 303 of Title 40.
Functions of Director of Procurement relating to selection of location and sites of public buildings transferred to Federal Works Administrator by Reorg. Plan No. I of 1939, set out in the Appendix to Title 5, Government Organization and Employees.
It shall be the policy of the Regents to maintain a worthy standard for the acceptance of art objects for exhibition in the Gallery, and to foster by public exhibitions from time to time in Washington, and other parts of the United States a growing appreciation of art, both of past and contemporary time; and the Regents are authorized to solicit and receive private donations of works of art and contributions of funds from private sources for the purchase of works of art. Funds so received shall be placed in a special deposit account with the Treasurer of the United States and may be expended by the Regents for the purchase of works of art.
In order to encourage the development of contemporary art and to effect the widest distribution and cultivation in matters of such art, the Regents are authorized to solicit and receive funds from private sources, to acquire (by purchase or otherwise) and sell contemporary works of art or copies thereof, to employ artists and other personnel, award scholarships, conduct exhibitions, and generally to do such things and have such other powers as will effectuate the purposes of this subsection. Funds received by the Regents under this subsection shall be placed in a special deposit account with the Treasurer of the United States and may be expended by the Regents for the purposes enumerated in this subsection and for no other purposes: Provided, That the Regents shall not incur any obligations under this subsection in excess of the funds available therefor.
(May 17, 1938, ch. 238, §4, 52 Stat. 400.)
The Administrator of General Services and other agencies of the Government are authorized to donate to the Gallery any works of art now or hereafter under their control.
(May 17, 1938, ch. 238, §5, 52 Stat. 401; 1939 Reorg. Plan No. I, §§301, 303, eff. July 1, 1939, 4 FR 2729, 53 Stat. 1426, 1427; June 30, 1949, ch. 288, title I, §103, 63 Stat. 380.)
Functions of Federal Works Agency and of all agencies thereof, together with functions of Federal Works Administrator, transferred to Administrator of General Services, and Federal Works Agency and office of Federal Works Administrator abolished by section 103 of act June 30, 1949. See Historical and Revision Notes under section 303(b) of Title 40, Public Buildings, Property, and Works. Section 303(b) of Title 40 was amended generally by Pub. L. 109–313, §2(a)(1), Oct. 6, 2006, 120 Stat. 1734, and, as so amended, no longer relates to the Federal Works Agency and Commissioner of Public Buildings. See 2006 Amendment note under section 303 of Title 40.
Public Buildings Branch of Procurement Division in Treasury Department and Public Works Administration and other agencies were consolidated into Federal Works Agency, and functions transferred to Federal Works Administrator, by Reorg. Plan No. I of 1939, set out in the Appendix to Title 5, Government Organization and Employees.
Such objects of art as the Government or the Smithsonian Institution now possess, or such as may hereafter be acquired, may be housed or exhibited in the Gallery, with the approval of and under such regulations as the Regents and Secretary of the Smithsonian Institution may prescribe.
(May 17, 1938, ch. 238, §6, 52 Stat. 401.)
The Regents may appoint and fix the compensation and duties of a Director of the Gallery and may employ such other officers and employees as may be necessary for the efficient operation and administration of the Gallery.
(May 17, 1938, ch. 238, §7, 52 Stat. 401.)
There are authorized to be appropriated annually such sums as may be necessary to maintain and administer the Gallery, including the salaries of the Director and of other necessary officers and employees, and for special public exhibitions at Washington and elsewhere.
(May 17, 1938, ch. 238, §8, 52 Stat. 401.)
There is established in the Smithsonian Institution a bureau, which shall be directed by a board to be known as the Trustees of the John F. Kennedy Center for the Performing Arts (hereafter in this subchapter referred to as the “Board”), whose duty it shall be to maintain and administer the John F. Kennedy Center for the Performing Arts and site thereof as the National Center for the Performing Arts, a living memorial to John Fitzgerald Kennedy, and to execute such other functions as are vested in the Board by this subchapter.
The Board shall be composed of—
(A) the Secretary of Health and Human Services;
(B) the Librarian of Congress;
(C) the Secretary of State;
(D) the Chairman of the Commission of Fine Arts;
(E) the Mayor of the District of Columbia;
(F) the Superintendent of Schools of the District of Columbia;
(G) the Director of the National Park Service;
(H) the Secretary of Education;
(I) the Secretary of the Smithsonian Institution;
(J)(i) the Speaker and the Minority Leader of the House of Representatives;
(ii) the chairman and ranking minority member of the Committee on Transportation and Infrastructure of the House of Representatives; and
(iii) three additional Members of the House of Representatives appointed by the Speaker of the House of Representatives;
(K)(i) the Majority Leader and the Minority Leader of the Senate;
(ii) the chairman and ranking minority member of the Committee on Environment and Public Works of the Senate; and
(iii) three additional Members of the Senate appointed by the President of the Senate; and
(L) thirty-six general trustees, who shall be citizens of the United States, to be appointed in accordance with subsection (b) of this section.
The general trustees shall be appointed by the President of the United States. Each trustee shall hold office as a member of the Board for a term of 6 years, except that—
(1) any member appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of the member was appointed shall be appointed for the remainder of the term;
(2) a member shall continue to serve until the successor of the member has been appointed; and
(3) the term of office of a member appointed before July 21, 1994, shall expire as designated at the time of appointment.
There shall be an Advisory Committee on the Arts composed of such members as the President of the United States may designate, to serve at the pleasure of the President. Persons appointed to the Advisory Committee on the Arts, including officers or employees of the United States, shall be persons who are recognized for their knowledge of, or experience or interest in, one or more of the arts in the fields covered by the John F. Kennedy Center for the Performing Arts. The President shall designate the Chairman of the Advisory Committee on the Arts. In making such appointments the President shall give consideration to such recommendations as may from time to time be submitted to him by leading national organizations in the appropriate art fields. The Advisory Committee on the Arts shall advise and consult with the Board and make recommendations to the Board regarding existing and prospective cultural activities to be carried out by the John F. Kennedy Center for the Performing Arts. The Advisory Committee on the Arts shall assist the Board in carrying out section 76k(a) of this title. Members of the Advisory Committee on the Arts shall serve without compensation.
(Pub. L. 85–874, §2, Sept. 2, 1958, 72 Stat. 1698; Pub. L. 88–100, §§1, 2, Aug. 19, 1963, 77 Stat. 128; Pub. L. 88–260, §1(2), Jan. 23, 1964, 78 Stat. 4; Pub. L. 103–279, §2(b)(1), (c), (d), July 21, 1994, 108 Stat. 1409, 1410; Pub. L. 107–117, div. D, title II, §201(a), Jan. 10, 2002, 115 Stat. 2353; Pub. L. 110–338, §2, Oct. 3, 2008, 122 Stat. 3731.)
2008—Subsec. (a)(2)(J)(ii). Pub. L. 110–338 substituted “Transportation and Infrastructure” for “Public Works and Transportation”.
2002—Subsec. (a). Pub. L. 107–117 designated existing provisions as par. (1), inserted par. heading, struck out “hereby” before “established”, struck out second sentence, and added par. (2). Prior to amendment, second sentence read as follows: “The Board shall be composed as follows: The Secretary of Health and Human Services, the Librarian of Congress, the Director of the United States Information Agency, the Chairman of the Commission of Fine Arts, the Mayor of the District of Columbia, the Superintendent of Schools of the District of Columbia, the Director of the National Park Service, the Secretary of Education, the Secretary of the Smithsonian Institution, the chairman and ranking minority member of the Committee on Public Works and Transportation of the House of Representatives and 3 additional Members of the House of Representatives appointed by the Speaker of the House of Representatives, and the chairman and ranking minority member of the Committee on Environment and Public Works of the Senate and 3 additional Members of the Senate appointed by the President of the Senate ex officio; and thirty general trustees who shall be citizens of the United States, to be chosen as hereinafter provided.”
1994—Pub. L. 103–279, §2(b)(1)(A), substituted section catchline for former section catchline.
Subsec. (a). Pub. L. 103–279, §2(b)(1)(A), inserted heading, in first sentence inserted “as the National Center for the Performing Arts, a living memorial to John Fitzgerald Kennedy,” after “and site thereof”, and in second sentence substituted “Superintendent of Schools of the District of Columbia” for “Chairman of the District of Columbia Recreation Board” and “the chairman and ranking minority member of the Committee on Public Works and Transportation of the House of Representatives and 3 additional Members of the House of Representatives appointed by the Speaker of the House of Representatives, and the chairman and ranking minority member of the Committee on Environment and Public Works of the Senate and 3 additional Members of the Senate appointed by the President of the Senate” for “three Members of the Senate appointed by the President of the Senate, and three Members of the House of Representatives appointed by the Speaker of the House of Representatives”.
Subsec. (b). Pub. L. 103–279, §2(c), inserted heading and amended text generally. Prior to amendment, text read as follows: “The general trustees shall be appointed by the President of the United States and each such trustee shall hold office as a member of the Board for a term of ten years, except that (1) any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term, (2) the terms of any members appointed prior to August 19, 1963, shall expire as designated by the President at the time of appointment, and (3) the terms of the first fifteen members appointed to the Board pursuant to the amendments made by the National Cultural Center Amendments Act of 1963 shall expire, as designated by the President at the time of appointment, three on September 1, 1964, three on September 1, 1966, three on September 1, 1968, three on September 1, 1970, and three on September 1, 1972.”
Subsec. (c). Pub. L. 103–279, §2(d), inserted heading, inserted “of the United States” before “may designate” in first sentence, substituted “carried out by the John” for “carried on in the John” in fifth sentence, and struck out before period at end of last sentence “, but each member of such Committee shall be reimbursed for travel, subsistence, and other necessary expenses incurred by him in connection with the work of such Committee”.
1964—Subsecs. (a), (c). Pub. L. 88–260 substituted “John F. Kennedy Center for the Performing Arts” for “National Cultural Center” wherever appearing.
1963—Subsec. (a). Pub. L. 88–100, §1, substituted “thirty” for “fifteen” after “ex officio; and”.
Subsec. (b). Pub. L. 88–100, §2, inserted provisions governing the terms of the additional fifteen general trustees added to the Board by section 1 of Pub. L. 88–100.
Section 2(b)(2) of Pub. L. 103–279 provided that:
“(A)
“(B)
Pub. L. 110–338, §1, Oct. 3, 2008, 122 Stat. 3731, provided that: “This Act [enacting section 76m of this title, amending this section and section 76r of this title, and enacting provisions set out as a note under this section] may be cited as the ‘John F. Kennedy Center Reauthorization Act of 2008’.”
Pub. L. 108–410, §1, Oct. 30, 2004, 118 Stat. 2303, provided that: “This Act [amending sections 76q–1 and 76r of this title] may be cited as the ‘John F. Kennedy Center Reauthorization Act of 2004’.”
Pub. L. 107–224, §1, Sept. 18, 2002, 116 Stat. 1340, provided that: “This Act [enacting section 76q–1 of this title and amending sections 76j, 76r, and 76s of this title] may be cited as the ‘John F. Kennedy Center Plaza Authorization Act of 2002’.”
Pub. L. 105–226, §1, Aug. 12, 1998, 112 Stat. 1513, provided that: “This Act [amending sections 76j, 76l, and 76r of this title] may be cited as the ‘John F. Kennedy Center for the Performing Arts Authorization Act of 1998’.”
Pub. L. 105–95, §1, Nov. 19, 1997, 111 Stat. 2148, provided that: “This Act [amending sections 76i to 76k and 76s of this title and section 193v of former Title 40, Public Buildings, Property, and Works] may be cited as the ‘John F. Kennedy Center Parking Improvement Act of 1997’.”
Section 1 of Pub. L. 103–279 provided that: “This Act [enacting sections 76r and 76s of this title, amending this section, sections 76j, 76k, 76l, and 76p of this title, and sections 193r, 193u, and 193v of former Title 40, Public Buildings, Property, and Works, enacting provisions set out as notes under this section, and amending provisions set out as a note under this section] may be cited as the ‘John F. Kennedy Center Act Amendments of 1994’.”
Pub. L. 98–473, title I, §101(c), Oct. 12, 1984, 98 Stat. 1837, 1876, provided that: “The following [amending section 76o of this title] may be cited as ‘The John F. Kennedy Center Act Amendments of 1984’.”
Section 5 of Pub. L. 88–100 provided that: “This Act [amending this section and sections 76l and 76m of this title] may be cited as the ‘National Cultural Center Amendments Act of 1963’.”
Section 1(a), formerly §1, of Pub. L. 85–874, as amended by Pub. L. 88–260, §1(1), Jan. 23, 1964, 78 Stat. 4; redesignated §1(a), Pub. L. 103–279, §2(a)(1), July 21, 1994, 108 Stat. 1409, provided that: “This Act [enacting this subchapter] may be cited as the ‘John F. Kennedy Center Act’.”
Pub. L. 110–338, §5, Oct. 3, 2008, 122 Stat. 3732, provided that: “Nothing in this Act [see Short Title of 2008 Amendment note above] limits or otherwise affects the authority or responsibility of the National Capital Planning Commission or the Commission of Fine Arts.”
Pub. L. 107–117, div. D, title II, §201(b), Jan. 10, 2002, 115 Stat. 2354, provided that: “Section 2(b) of the John F. Kennedy Center Act (20 U.S.C. 76h(b)) shall apply to each general trustee of the John F. Kennedy Center for the Performing Arts whose position is established by the amendment made by subsection (a)(2) [amending this section] (referred to in this subsection as a ‘new general trustee’), except that the initial term of office of each new general trustee shall—
“(1) commence on the date on which the new general trustee is appointed by the President; and
“(2) terminate on September 1, 2007.”
Section 2 of Pub. L. 88–260 provided that: “In addition to the amendments made by the first section of this Act [enacting sections 76n to 76q, and amending sections 76h to 76q of this title], any designation or reference to the National Cultural Center in any other law, map, regulation, document, record, or other paper of the United States shall be held to designate or refer to such Center as the John F. Kennedy Center for the Performing Arts.”
Section 1(b) of Pub. L. 85–874, as added by Pub. L. 103–279, §2(a)(2), July 21, 1994, 108 Stat. 1409, provided that: “Congress finds that—
“(1) the late John Fitzgerald Kennedy served with distinction as President of the United States and as a Member of the Senate and the House of Representatives;
“(2) by the untimely death of John Fitzgerald Kennedy the United States and the world have suffered a great loss;
“(3) the late John Fitzgerald Kennedy was particularly devoted to education and cultural understanding and the advancement of the performing arts;
“(4) it is fitting and proper that a living institution of the performing arts, designated as the National Center for the Performing Arts, named in the memory and honor of this great leader, shall serve as the sole national monument to his memory within the District of Columbia and its environs;
“(5) such a living memorial serves all of the people of the United States by preserving, fostering, and transmitting the performing arts traditions of the people of the United States and other countries by producing and presenting music, opera, theater, dance, and other performing arts; and
“(6) such a living memorial should be housed in the John F. Kennedy Center for the Performing Arts, located in the District of Columbia.”
The Board shall construct for the Smithsonian Institution, with funds raised by voluntary contributions, a building to be designated as the John F. Kennedy Center for the Performing Arts on a site in the District of Columbia bounded by the Inner Loop Freeway on the east, the Theodore Roosevelt Bridge approaches on the south, Rock Creek Parkway on the west, New Hampshire Avenue and F Street on the north, which shall be selected for such purpose by the National Capital Planning Commission. The National Capital Planning Commission shall acquire by purchase, condemnation, or otherwise, lands necessary to provide for the John F. Kennedy Center for the Performing Arts and related facilities. Such building shall be in accordance with plans and specifications approved by the Commission of Fine Arts.
Substantially in accordance with the plan entitled “Site Master Plan—Drawing Number 1997–2 April 29, 1997,” and map number NCR 844/82571, the Board may design and construct—
(A) an addition to the parking garage at each of the north and south ends of the John F. Kennedy Center for the Performing Arts; and
(B) site improvements and modifications.
The plan shall be on file and available for public inspection in the office of the Secretary of the Center.
No appropriated funds may be used to pay the costs (including the repayment of obligations incurred to finance costs) of—
(A) the design and construction of an addition to the parking garage authorized under paragraph (1)(A);
(B) the design and construction of site improvements and modifications authorized under paragraph (1)(B) that the Board specifically designates will be financed using sources other than appropriated funds; or
(C) any project to acquire large screen format equipment for an interpretive theater, or to produce an interpretive film, that the Board specifically designates will be financed using sources other than appropriated funds.
(Pub. L. 85–874, §3, Sept. 2, 1958, 72 Stat. 1699; Pub. L. 88–260, §1(2), Jan. 23, 1964, 78 Stat. 4; Pub. L. 105–95, §2, Nov. 19, 1997, 111 Stat. 2148.)
1997—Pub. L. 105–95 substituted section catchline for former section catchline, designated existing provisions as subsec. (a) and inserted heading, and added subsec. (b).
1964—Pub. L. 88–260 substituted “John F. Kennedy Center for the Performing Arts” for “National Cultural Center” wherever appearing.
The Board shall—
(A) present classical and contemporary music, opera, drama, dance, and other performing arts from the United States and other countries;
(B) promote and maintain the John F. Kennedy Center for the Performing Arts as the National Center for the Performing Arts—
(i) by developing and maintaining a leadership role in national performing arts education policy and programs, including developing and presenting original and innovative performing arts and educational programs for children, youth, families, adults, and educators designed specifically to foster an appreciation and understanding of the performing arts;
(ii) by developing and maintaining a comprehensive and broad program for national and community outreach, including establishing model programs for adaptation by other presenting and educational institutions; and
(iii) by conducting joint initiatives with the national education and outreach programs of the Very Special Arts, an entity affiliated with the John F. Kennedy Center for the Performing Arts which has an established program for the identification, development, and implementation of model programs and projects in the arts for disabled individuals;
(C) strive to ensure that the education and outreach programs and policies of the John F. Kennedy Center for the Performing Arts meet the highest level of excellence and reflect the cultural diversity of the United States;
(D) provide facilities for other civic activities at the John F. Kennedy Center for the Performing Arts;
(E) provide within the John F. Kennedy Center for the Performing Arts a suitable memorial in honor of the late President;
(F) develop, and update annually, a comprehensive building needs plan for the features of the John F. Kennedy Center for the Performing Arts in existence on July 21, 1994;
(G) with respect to the building and site of the John F. Kennedy Center for the Performing Arts, plan, design, and construct each capital repair, replacement, improvement, rehabilitation, alteration, or modification necessary to maintain the functionality of the building and site at current standards of life, safety, security, and accessibility;
(H) provide—
(i) information and interpretation; and
(ii) with respect to the building and site of the John F. Kennedy Center for the Performing Arts, all necessary maintenance, repair, and alteration of, and all janitorial, security, and other services and equipment necessary for the operations of, the building and site, in a manner consistent with requirements for high quality operations; and
(I) ensure that safe and convenient access to the site of the John F. Kennedy Center for the Performing Arts is provided for pedestrians and vehicles.
The Board, in accordance with applicable law, may enter into contracts or other arrangements with, and make payments to, public agencies or private organizations or other private persons in order to carry out the functions of the Board under this subchapter. The authority described in the preceding sentence includes utilizing the services and facilities of other agencies, including the Department of the Interior, the General Services Administration, and the Smithsonian Institution.
The Board shall prepare a budget pursuant to sections 1104, 1105(a), and 1513(b) of title 31.
The Board may utilize or employ the services of the personnel of any agency or instrumentality of the Federal Government or the District of Columbia, with the consent of the agency or the instrumentality concerned, on a reimbursable basis, and utilize voluntary and uncompensated personnel.
In carrying out the duties of the Board under this subchapter, the Board may negotiate any contract—
(i) for planning, design, engineering, or construction of buildings to be erected on the John F. Kennedy Center Plaza under section 76q–1 of this title and for landscaping and other improvements to the Plaza; or
(ii) for an environmental system for, a protection system for, or a repair to, maintenance of, or restoration of the John F. Kennedy Center for the Performing Arts,
with selected contractors and award the contract on the basis of contractor qualifications as well as price.
The Board shall maintain the Hall of Nations, the Hall of States, and the Grand Foyer of the John F. Kennedy Center for the Performing Arts in a manner that is suitable to a national performing arts center that is operated as a Presidential memorial and in a manner consistent with other national Presidential memorials.
The Board shall manage and operate the grounds of the John F. Kennedy Center for the Performing Arts in a manner consistent with National Park Service regulations and agreements in effect on July 21, 1994. No change in the management and operation of the grounds may be made without the express approval of Congress and of the Secretary of the Interior.
(1) Except as provided in paragraph (2) of this subsection, the Board shall assure that after December 2, 1983, no additional memorials or plaques in the nature of memorials shall be designated or installed in the public areas of the John F. Kennedy Center for the Performing Arts.
(2) Paragraph (1) of this subsection shall not apply to—
(A) any plaque acknowledging a gift from a foreign country;
(B) any plaque on a theater chair or a theater box acknowledging the gift of such chair or box; and
(C) any inscription on the marble walls in the north or south galleries, the Hall of States, or the Hall of Nations acknowledging a major contribution;
which plaque or inscription is permitted under policies of the Board in effect on December 2, 1983.
(3) For purposes of this subsection, testimonials and benefit performances shall not be construed to be memorials.
(Pub. L. 85–874, §4, Sept. 2, 1958, 72 Stat. 1699; Pub. L. 88–260, §1(3), Jan. 23, 1964, 78 Stat. 4; Pub. L. 98–205, §4, Dec. 2, 1983, 97 Stat. 1388; Pub. L. 103–279, §3, July 21, 1994, 108 Stat. 1411; Pub. L. 105–95, §3(a), Nov. 19, 1997, 111 Stat. 2149; Pub. L. 105–226, §§2, 3, Aug. 12, 1998, 112 Stat. 1513; Pub. L. 107–224, §4(a), Sept. 18, 2002, 116 Stat. 1343.)
2002—Subsec. (a)(2)(D). Pub. L. 107–224 amended heading and text of subpar. (D) generally. Prior to amendment, text read as follows: “In carrying out the duties of the Board under this subchapter, the Board may negotiate any contract for an environmental system for, a protection system for, or a repair to, maintenance of, or restoration of the John F. Kennedy Center for the Performing Arts with selected contractors and award the contract on the basis of contractor qualifications as well as price.”
1998—Subsec. (a)(1)(G). Pub. L. 105–226, §2, amended subpar. (G) generally. Prior to amendment, subpar. (G) read as follows: “with respect to each feature of the building and site of the John F. Kennedy Center for the Performing Arts that is in existence on July 21, 1994 (including a theater, the garage, the plaza, or a building walkway), plan, design, and construct each capital repair, replacement, improvement, rehabilitation, alteration, or modification necessary for the feature;”.
Subsec. (a)(1)(H)(ii). Pub. L. 105–226, §3, amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “with respect to each feature of the building and site of the John F. Kennedy Center for the Performing Arts that is in existence on July 21, 1994 (including a theater, the garage, the plaza, or a building walkway), all necessary maintenance, repair, and alteration of, and all janitorial, security, and other services and equipment necessary for the operation of, the feature, in a manner consistent with requirements for high quality operations; and”.
1997—Subsec. (a)(1)(I). Pub. L. 105–95 added subpar. (I).
1994—Pub. L. 103–279 substituted section catchline for former section catchline, added heading and text of subsec. (a), and struck out former subsec. (a) which read as follows: “The Board shall—
“(1) present classical and contemporary music, opera, drama, dance, and poetry from this and other countries,
“(2) present lectures and other programs,
“(3) develop programs for children and youth and the elderly (and for other age groups as well) in such arts designed specifically for their participation, education, and recreation,
“(4) provide facilities for other civic activities at the John F. Kennedy Center for the Performing Arts,
“(5) provide within the John F. Kennedy Center for the Performing Arts a suitable memorial in honor of the late President.”
1983—Pub. L. 98–205 designated existing provisions as subsec. (a) and added subsec. (b).
1964—Pub. L. 88–260 struck out “and” at end of par. (3), substituted “John F. Kennedy Center for the Performing Arts” for “Cultural Center” in par. (4), and added par. (5).
Pub. L. 105–178, title I, §1214(a), June 9, 1998, 112 Stat. 204, provided that:
“(1)
“(2)
“(3)
“(4)
The Board is authorized to solicit and accept for the John F. Kennedy Center for the Performing Arts, as a bureau of the Smithsonian Institution, and to hold and administer gifts, bequests, or devises of money, securities, or other property of whatsoever character for the benefit of the John F. Kennedy Center for the Performing Arts. Unless otherwise restricted by the terms of the gift, bequest, or devise, the Board is authorized to sell or exchange and to invest or reinvest in such investments as it may determine from time to time the moneys, securities, or other property composing trust funds given, bequeathed, or devised to or for the benefit of the John F. Kennedy Center for the Performing Arts. The income as and when collected shall be placed in such depositaries as the Board shall determine and shall be subject to expenditure by the Board.
The Board shall appoint and fix the compensation and duties of a Chairperson of the John F. Kennedy Center for the Performing Arts, who shall serve as the chief executive officer of the Center, and a Secretary of the John F. Kennedy Center for the Performing Arts. The Chairperson and Secretary shall be well qualified by experience and training to perform the duties of their respective offices.
The Chairperson of the John F. Kennedy Center for the Performing Arts may appoint—
(A) a senior level executive who, by virtue of the background of the individual, shall be well suited to be responsible for facilities management and services and who may, without regard to the provisions of title 5, be appointed and compensated with appropriated funds, except that the compensation may not exceed the maximum rate of pay prescribed for level IV of the Executive Schedule under section 5315 of title 5; and
(B) such other officers and employees of the John F. Kennedy Center for the Performing Arts as may be necessary for the efficient administration of the functions of the Board.
Not later than October 1, 1995, the property, liabilities, contracts, records, and unexpended balances of appropriations, authorizations, allocations, and other funds employed, held, used, arising from, available to, or to be made available in connection with the functions transferred from the Secretary of the Interior pursuant to the amendments made by the John F. Kennedy Center Act Amendments of 1994 shall be transferred, subject to section 1531 of title 31, to the Board as the Board and the Secretary of the Interior may determine appropriate. Unexpended funds transferred pursuant to this subsection shall be used only for the purposes for which, and subject to the terms under which, the funds were originally authorized and appropriated.
Employees of the National Park Service assigned to duties related to the functions being undertaken by the Board shall be transferred with their functions to the Board not later than October 1, 1995.
Transferred employees shall remain in the Federal competitive service and retain all rights and benefits provided under title 5. For a period of not less than 3 years after the date of transfer of an employee under paragraph (1), the transferred employee shall retain the right of priority consideration under merit promotion procedures or lateral reassignment for all vacancies within the Department of the Interior.
All United States Park Police and Park Police guard force employees assigned to the John F. Kennedy Center for the Performing Arts shall remain employees of the National Park Service.
All usual and customary costs associated with any adverse action or grievance proceeding resulting from the transfer of functions under this section that are incurred before October 1, 1995, shall be paid from funds appropriated to the John F. Kennedy Center for the Performing Arts.
Nothing contained in this section shall prohibit the Board from reorganizing functions at the John F. Kennedy Center for the Performing Arts in accordance with laws governing reorganizations.
The actions of the Board relating to performing arts and to payments made or directed to be made by the Board from any trust funds shall not be subject to review by any officer or agency other than a court of law.
As used in this subsection, the term “theatrical employee” means a nonappropriated fund employee of the Board, who is engaged in a box office, performing, or theatrical trade that is the subject of a collective bargaining agreement as of January 1, 1994, including any change in the trade as a result of a technological advance.
For the purposes of the National Labor Relations Act (29 U.S.C. 151 et seq.) and the Labor-Management Relations Act, 1947 (29 U.S.C. 141 et seq.)—
(i) each theatrical employee shall be considered to be an “employee” within the meaning of section 2(3) of the National Labor Relations Act (29 U.S.C. 152(3)); and
(ii) with respect to a theatrical employee, the Board shall be considered to be an “employer” within the meaning of section 2(2) of the National Labor Relations Act (29 U.S.C. 152(2)).
With respect to each theatrical employee, the theatrical employee and the Board shall have all of the rights and obligations specified in such Acts.
Subject to approval of the Secretary of the Interior under section 76j(a)(2)(F) of this title, the Board shall develop plans and carry out projects to improve pedestrian and vehicular access to the John F. Kennedy Center for the Performing Arts.
(Pub. L. 85–874, §5, Sept. 2, 1958, 72 Stat. 1699; Pub. L. 88–260, §1(2), Jan. 23, 1964, 78 Stat. 4; Pub. L. 103–279, §4, July 21, 1994, 108 Stat. 1413; Pub. L. 105–95, §3(b), Nov. 19, 1997, 111 Stat. 2149.)
The John F. Kennedy Center Act Amendments of 1994, referred to in subsec. (c), is Pub. L. 103–279, July 21, 1994, 108 Stat. 1409, which enacted sections 76r and 76s of this title, amended this section, sections 76h, 76j, 76l, and 76p of this title, and sections 193r, 193u, and 193v of former Title 40, Public Buildings, Property, and Works, and enacted and amended provisions set out as notes under section 76h of this title. For complete classification of this Act to the Code, see Short Title of 1994 Amendment note set out under section 76h of this title and Tables.
The provisions relating to the Federal competitive service, referred to in subsec. (d)(2), are classified generally to section 3301 et seq. of Title 5, Government Organization and Employees.
The National Labor Relations Act, referred to in subsec. (f)(2), is act July 5, 1935, ch. 372, 49 Stat. 449, as amended, which is classified generally to subchapter II (§151 et seq.) of chapter 7 of Title 29, Labor. For complete classification of this Act to the Code, see section 167 of Title 29 and Tables.
The Labor Management Relations Act, 1947, referred to in subsec. (f)(2), is act June 23, 1947, ch. 120, 61 Stat. 136, as amended, which is classified principally to chapter 7 (§141 et seq.) of Title 29. For complete classification of this Act to the Code, see section 141 of Title 29 and Tables.
1997—Subsec. (g). Pub. L. 105–95 added subsec. (g).
1994—Pub. L. 103–279, §4(a)(1), substituted section catchline for former section catchline.
Subsec. (a). Pub. L. 103–279, §4(a)(1), inserted heading and substituted “John F. Kennedy Center for the Performing Arts, as a bureau of the Smithsonian Institution,” for “Smithsonian Institution”.
Subsec. (b). Pub. L. 103–279, §4(b), inserted heading and amended text generally. Prior to amendment, text read as follows: “The Board shall appoint and fix the compensation and duties of a director, an assistant director, and a secretary of the John F. Kennedy Center for the Performing Arts and of such other officers and employees of the John F. Kennedy Center for the Performing Arts as may be necessary for the efficient administration of the functions of the Board. The director, assistant director, and secretary shall be well qualified by experience and training to perform the duties of their office.”
Subsec. (c). Pub. L. 103–279, §4(c), added heading and text of subsec. (c) and struck out text of former subsec. (c). Prior to amendment, text read as follows: “The actions of the Board, including any payment made or directed to be made by it from any trust funds, shall not be subject to review by any officer or agency other than a court of law.”
Subsecs. (d) to (f). Pub. L. 103–279, §4(c), added subsecs. (d) to (f).
1964—Subsecs. (a), (b). Pub. L. 88–260 substituted “John F. Kennedy Center for the Performing Arts” for “National Cultural Center” wherever appearing.
The Board is authorized to adopt an official seal which shall be judicially noticed and to make such bylaws, rules, and regulations, as it deems necessary for the administration of its functions under this subchapter, including, among other matters, bylaws, rules, and regulations relating to the administration of its trust funds and the organization and procedure of the Board. The Board may function notwithstanding vacancies and twelve members of the Board shall constitute a quorum for the transaction of business.
The Board shall have all the usual powers and obligations of a trustee in respect of all trust funds administered by it.
The Board shall submit to the Smithsonian Institution and to Congress an annual report of the operations of the Board under this subchapter, including a detailed statement of all public and private moneys received and disbursed by it.
The functions of the Board funded by funds appropriated pursuant to section 76r 1 of this title shall be subject to the requirements for a Federal entity under the Inspector General Act of 1978 (5 U.S.C. App.). The Inspector General of the Smithsonian Institution is authorized to carry out the requirements of such Act on behalf of the Board, on a reimbursable basis when requested by the Board.
The Board may procure insurance against any loss in connection with the property of the Board and other assets administered by the Board. Each employee and volunteer of the Board shall be considered to be a civil employee of the United States (within the meaning of the term “employee” as defined in section 8101(1) of title 5), except that the Board shall continue to provide benefits with respect to any disability or death resulting from a personal injury to a nonappropriated fund employee of the Board sustained while in the performance of the duties of the employee for the Board pursuant to the workers compensation statute of the jurisdiction in which the John F. Kennedy Center for the Performing Arts is located. The disability or death benefits referred to in the preceding sentence, whether under the workers compensation statute referred to in the preceding sentence or under chapter 81 of title 5, shall continue to be the exclusive liability of the Board and the United States with respect to all employees and volunteers of the Board.
For the purposes of chapter 171 of title 28, an employee of the Board shall be considered to be an “employee of the government” and the Board shall be considered to be a “Federal agency”. No employee of the Board may bring suit against the United States or the Board under the Federal tort claims procedure of chapter 171 of title 28 for disability or death resulting from personal injury sustained while in the performance of the duties of the employee for the Board.
(Pub. L. 85–874, §6, Sept. 2, 1958, 72 Stat. 1699; Pub. L. 88–100, §3, Aug. 19, 1963, 77 Stat. 128; Pub. L. 88–260, §1(4), (5), Jan. 23, 1964, 78 Stat. 4; Pub. L. 92–313, §10, June 16, 1972, 86 Stat. 222; Pub. L. 93–67, July 10, 1973, 87 Stat. 161; Pub. L. 94–119, §§1, 2, Oct. 21, 1975, 89 Stat. 608; Pub. L. 94–578, title III, §314, Oct. 21, 1976, 90 Stat. 2737; Pub. L. 95–50, §2, June 20, 1977, 91 Stat. 232; Pub. L. 95–305, June 29, 1978, 92 Stat. 348; Pub. L. 96–587, §1, Dec. 23, 1980, 94 Stat. 3387; Pub. L. 97–73, Nov. 3, 1981, 95 Stat. 1064; Pub. L. 97–202, June 24, 1982, 96 Stat. 128; Pub. L. 101–449, §§1–3, Oct. 22, 1990, 104 Stat. 1050; Pub. L. 102–500, §1, Oct. 24, 1992, 106 Stat. 3267; Pub. L. 103–279, §5, July 21, 1994, 108 Stat. 1414; Pub. L. 105–226, §4, Aug. 12, 1998, 112 Stat. 1513.)
Section 76r of this title, referred to in subsec. (d), was in the original a reference to section 12 of Pub. L. 85–874. Section 12 of Pub. L. 85–874 was renumbered as section 13, and a new section 12 was added, by Pub. L. 107–224, §2, Sept. 18, 2002, 116 Stat. 1340. Sections 12 and 13 are classified to sections 76q–1 and 76r, respectively, of this title.
The Inspector General Act of 1978, referred to in subsec. (d), 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.
1998—Subsecs. (d) to (f). Pub. L. 105–226 redesignated subsecs. (e) and (f) as (d) and (e), respectively, and struck out heading and text of former subsec. (d). Text read as follows: “Not less than once every 3 years, the Comptroller General shall review and audit the accounts of the John F. Kennedy Center for the Performing Arts for the purpose of examining expenditures of funds appropriated under the authority provided by this subchapter.”
1994—Subsec. (c). Pub. L. 103–279, §5(1), substituted “the operations of the Board” for “its operations”.
Subsecs. (d) to (f). Pub. L. 103–279, §5(2), added subsecs. (d) to (f) and struck out former subsec. (e) which related to maintenance, repair, alteration, security, information, and other services and former subsec. (f) which related to audits.
1992—Subsec. (e)(3). Pub. L. 102–500 amended par. (3) generally. Prior to amendment, par. (3) read as follows: “There is authorized to be appropriated to the Secretary of the Interior to carry out this subsection—
“(A) for fiscal year 1991, not more than—
“(i) $6,750,000 for annual maintenance, repairs, alterations, and operating services; and
“(ii) $15,000,000 for deferred maintenance, repairs, and alterations; and
“(B) for fiscal year 1992, not more than—
“(i) $9,850,000 for annual maintenance, repairs, alterations, and operating services; and
“(ii) $15,512,000 for deferred maintenance, repairs, and alterations.”
1990—Subsec. (d). Pub. L. 101–449, §3, struck out subsec. (d) which read as follows: “The Board shall transmit to Congress a detailed report of any memorial which it proposes to provide within the John F. Kennedy Center for the Performing Arts under authority of paragraph (5) of section 76j of this title, and no such memorial shall be provided until the Board of Regents of the Smithsonian Institution shall have approved such memorial.”
Subsec. (e). Pub. L. 101–449, §1, amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “The Secretary of the Interior, acting through the National Park Service, shall provide maintenance, security, information, interpretation, janitorial and all other services necessary to the nonperforming arts functions of the John F. Kennedy Center for the Performing Arts. There is authorized to be appropriated to carry out this subsection not to exceed $2,800,000 for the fiscal year ending June 30, 1976, $741,000 for the transition period ending September 30, 1976, $3,100,000 for the fiscal year ending September 30, 1977, and $4,000,000 for the fiscal year ending September 30, 1978. There is authorized to be appropriated to carry out this subsection not to exceed $4,200,000 for the fiscal year ending September 30, 1979. There is authorized to be appropriated to carry out this subsection not to exceed $4,287,000 for the fiscal year ending September 30, 1980, and not to exceed $4,400,000 for the fiscal year ending September 30, 1981, and not to exceed $4,544,000 for the fiscal year ending September 30, 1982, and not to exceed $4,247,000 for the fiscal year ending September 30, 1983.”
Subsec. (f). Pub. L. 101–449, §2, amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: “The General Accounting Office is authorized and directed to review and audit, regularly, the accounts of the Kennedy Center for the Performing Arts, for the purpose of determining the continuing ability of the Center to pay its share of future operating costs, and for the purpose of assuring that the cost-of-living formula fairly and accurately reflects the use of the building.”
1982—Subsec. (e). Pub. L. 97–202 inserted provisions authorizing an appropriation of not to exceed $4,247,000 for fiscal year ending Sept. 30, 1983.
1981—Subsec. (e). Pub. L. 97–73 inserted provision authorizing an appropriation of not to exceed $4,544,000 for fiscal year ending Sept. 30, 1982.
1980—Subsec. (e). Pub. L. 96–587 inserted provisions authorizing appropriations for fiscal years ending Sept. 30, 1980, and Sept. 30, 1981.
1978—Subsec. (e). Pub. L. 95–305 inserted provisions authorizing appropriations for fiscal year ending Sept. 30, 1979.
1977—Subsec. (e). Pub. L. 95–50 substituted provisions authorizing an appropriation of $4,000,000 for fiscal year ending Sept. 30, 1978, for provisions authorizing appropriations of $4,000,000 for fiscal year ending Sept. 30, 1978, and not to exceed $4,300,000 for the fiscal year ending Sept. 30, 1979.
1976—Subsec. (e). Pub. L. 94–578 substituted provisions authorizing appropriations for fiscal years ending Sept. 30, 1978, and Sept. 30, 1979, for provisions covering fiscal years ending Sept. 30, 1976, Sept. 30, 1977, and transitional period ending Sept. 30, 1976.
1975—Subsec. (e). Pub. L. 94–119, §1, inserted provisions authorizing appropriations for fiscal year ending June 30, 1976, for the transitional period ending Sept. 30, 1976, and for fiscal year ending Sept. 30, 1977.
Subsec. (f). Pub. L. 94–119, §2, added subsec. (f).
1973—Subsec. (e). Pub. L. 93–67 substituted provisions authorizing appropriations not to exceed $2,400,000 for fiscal year ending June 30, 1974, and $2,500,000 for fiscal year ending June 30, 1975, for provision granting general authorization of appropriation for fiscal year ending June 30, 1973.
1972—Subsec. (e). Pub. L. 92–313 added subsec. (e).
1964—Subsec. (c). Pub. L. 88–260, §1(4), inserted “and to Congress” after “Smithsonian Institution”.
Subsec. (d). Pub. L. 88–260, §1(5), added subsec. (d).
1963—Subsec. (a). Pub. L. 88–100 substituted “twelve” for “eight” after “vacancies and”.
For termination, effective May 15, 2000, of provisions in subsec. (c) of this section relating to submitting annual report 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 page 192 of House Document No. 103–7.
Pub. L. 100–446, title I, Sept. 27, 1988, 102 Stat. 1782, provided: “That contracts hereafter awarded for environmental systems, housekeeping, protection systems, and repair or renovation of buildings of the John F. Kennedy Center for the Performing Arts may be negotiated with selected contractors and awarded on the basis of contractor qualifications as well as price.”
1 See References in Text note below.
The Board may study, plan, design, engineer, and construct a photovoltaic system for the main roof of the John F. Kennedy Center for the Performing Arts.
Not later than 60 days before beginning construction of the photovoltaic system pursuant to subsection (a), the Board shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report on the feasibility and design of the project.
(Pub. L. 85–874, §7, as added, Pub. L. 110–338, §3, Oct. 3, 2008, 122 Stat. 3731.)
A prior section 76m, Pub. L. 85–874, §7, Sept. 2, 1958, 72 Stat. 1700; Pub. L. 86–297, Sept. 21, 1959, 73 Stat. 573; Pub. L. 88–100, §4, Aug. 19, 1963, 77 Stat. 128; Pub. L. 88–260, §1(2), Jan. 23, 1964, 78 Stat. 4; Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095, which related to termination of offices created and appointments made in connection with John F. Kennedy Center for the Performing Arts if moneys were not found to construct the Center within eight years after Sept. 2, 1958, was repealed by Pub. L. 101–449, §3, Oct. 22, 1990, 104 Stat. 1050.
Section, Pub. L. 85–874, §8, as added Pub. L. 88–260, §1(6), Jan. 23, 1964, 78 Stat. 4; amended Pub. L. 91–90, §1(a), Oct. 17, 1969, 83 Stat. 135; Pub. L. 92–313, §9, June 16, 1972, 86 Stat. 222; Pub. L. 95–50, §1, June 20, 1977, 91 Stat. 232, authorized appropriations for construction, repair, renovation, and reconstruction of John F. Kennedy Center for the Performing Arts.
To finance necessary parking facilities for the Center, the Board may issue revenue bonds to the Secretary of the Treasury payable from revenues accruing to the Board. The total face value of all bonds so issued shall not be greater than $20,400,000. Such obligations shall have maturities agreed upon by the Board and the Secretary of the Treasury but not in excess of fifty years. Such obligations may be redeemable at the option of the Board before maturity in such manner as may be stipulated in such obligations, but the obligations thus redeemed shall not be refinanced by the Board. The Secretary of the Treasury is authorized and directed to purchase any obligations of the Board to be issued under this section and for such purpose the Secretary of the Treasury 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 chapter 31 of title 31 are extended to include any purchases of the Board's obligations under this section.
Effective as of October 12, 1984, the obligations of the Board incurred under subsection (a) of this section shall bear no interest, and the requirement of the Board to pay the unpaid interest which has accrued on such obligations is terminated.
There is hereby established in the Treasury of the United States a sinking fund, the Kennedy Center Revenue Bond Sinking Fund (hereinafter referred to as the “Fund”), which shall be used to retire the obligations of the Board incurred under subsection (a) of this section upon the respective maturities of such obligations. The Board shall pay into the Fund, beginning on January 1, 1987 and ending on January 1, 2016, the annual sum of $200,000 in amortization of the principal amount of the obligations. Such sums shall be invested by the Secretary of the Treasury in public debt securities with maturities suitable for the needs of the Fund and bearing interest at rates 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. The interest on such investments shall be credited to and form a part of the Fund. Moneys in the Fund shall be used exclusively to retire the obligations of the Board incurred under subsection (a) of this section. Adjustments of not greater than plus or minus 5 per centum may be made from time to time in the annual payments to the Fund in order to correct any gains or deficiencies as a result of fluctuations in interest rates over the life of the investments: Provided, however, That a final adjustment shall be made between the Board and the Secretary of the Treasury at the end of the amortization period to correct any overall gain or deficiency in the Fund. The terms of this adjustment shall be covered by a memorandum of understanding between the Board and the Secretary of the Treasury to be consummated on or before the time the initial payment into the Fund is made.
(Pub. L. 85–874, §9, as added Pub. L. 88–260, §1(6), Jan. 23, 1964, 78 Stat. 5; amended Pub. L. 91–90, §1(b), Oct. 17, 1969, 83 Stat. 135; Pub. L. 98–473, title I, §101(c), Oct. 12, 1984, 98 Stat. 1837, 1876; Pub. L. 101–449, §4, Oct. 22, 1990, 104 Stat. 1051.)
1990—Subsec. (a). Pub. L. 101–449 substituted “chapter 31 of title 31” for “the Second Liberty Bond Act, as amended,” in two places.
1984—Pub. L. 98–473 designated existing provisions as subsec. (a), struck out provisions relating to interest on bonds, and added subsecs. (b) and (c).
1969—Pub. L. 91–90 substituted “$20,400,000” for “$15,400,000” in two places.
The Secretary of the Treasury is authorized to accept on behalf of the United States any gift to the United States which the Secretary finds has been contributed in honor of or in memory of the late President John F. Kennedy and to pay the money to such appropriation or other accounts, including the appropriation accounts established pursuant to appropriations authorized by this subchapter, as in the judgment of the Secretary will best effectuate the intent of the donor.
(Pub. L. 85–874, §10, as added Pub. L. 88–260, §1(6), Jan. 23, 1964, 78 Stat. 5; amended Pub. L. 103–279, §6, July 21, 1994, 108 Stat. 1415.)
1994—Pub. L. 103–279 substituted “which the Secretary finds” for “which he finds” and “the judgment of the Secretary” for “his judgment”.
The John F. Kennedy Center for the Performing Arts, designated by this subchapter, shall be the sole national memorial to the late John Fitzgerald Kennedy within the city of Washington and its environs.
(Pub. L. 85–874, §11, as added Pub. L. 88–260, §1(6), Jan. 23, 1964, 78 Stat. 5.)
In this section, the following definitions apply:
The term “air rights” means real property interests conveyed by deed, lease, or permit for the use of space between streets and alleys within the boundaries of the Project.
The term “Center” means the John F. Kennedy Center for the Performing Arts.
The term “green spaces” means areas within the boundaries of the Project or affected by the Project that are covered by grass, trees, or other vegetation.
The term “Plaza” means improvements to the area surrounding the John F. Kennedy Center building carried out under the Project and comprised of transportation elements (including roadways, sidewalks, and bicycle lanes) and non-transportation elements (including landscaping, green space, open public space, water, sewer, and utility connections).
The term “Project” means the Plaza project, as described in the TEA–21 report, providing for construction of a Plaza adjacent to the Center and for improved bicycle, pedestrian, and vehicular access to and around the Center. The term includes planning, design, engineering, and construction of the Plaza, buildings to be constructed on the Plaza, and related transportation improvements and may include any other elements of the Project identified in the TEA–21 report.
The term “Secretary” means the Secretary of Transportation.
The term “TEA–21 report” means the report of the Secretary submitted to Congress under section 1214 of the Transportation Equity Act for the 21st Century (20 U.S.C. 76j note; 112 Stat. 204).
The Secretary shall be responsible for the Project and may undertake such activities as may be necessary to construct the Project, other than buildings to be constructed on the Plaza, substantially as described in the TEA–21 report.
The Secretary shall be responsible for the planning, design, engineering, and construction of the Project, other than buildings to be constructed on the Plaza.
The Secretary shall enter into memoranda of agreement with the Board and any appropriate Federal or other governmental agency to facilitate the planning, design, engineering, and construction of the Project.
The Secretary shall consult with the Board to maximize efficiencies in planning and executing the Project, including the construction of any buildings on the Plaza.
Subject to the approval of the Board, the Secretary may enter into contracts on behalf of the Center related to the planning, design, engineering, and construction of the Project.
To further construction of the Project, the Secretary shall establish a Project Team.
The Project Team shall be composed of the following members:
(i) The Secretary (or the Secretary's designee).
(ii) The Administrator of General Services (or the Administrator's designee).
(iii) The Chairman of the Board (or the Chairman's designee).
(iv) Such other individuals as the Project Team considers appropriate.
The Project Team shall have a Project Director who shall be appointed by the Secretary, in consultation with the Administrator of General Services and the Chairman of the Board. The Project Director shall report directly to the Project Team.
The Board, in consultation with the Project Team, may undertake such activities as may be necessary to construct buildings on the Plaza for the Project.
The Board may receive from the District of Columbia such transfers of air rights as may be necessary for the planning, design, engineering, and construction of the Project.
The Board, in consultation with the Project Team, may construct, with non-appropriated funds, buildings on the Plaza for the Project and shall be responsible for the planning, design, engineering, and construction of the buildings.
The Board may acknowledge private contributions used in the construction of buildings on the Plaza for the Project in the interior of the buildings, but may not acknowledge private contributions on the exterior of the buildings.
Any acknowledgment of private contributions under this paragraph shall be consistent with the requirements of section 76j(b) of this title.
Notwithstanding section 76k(e) of this title, any decision by the Board that will significantly affect, as determined by the Project Team in consultation with the Board, the scope, cost, schedule, or engineering feasibility of any element of the Project, other than buildings to be constructed on the Plaza, shall be subject to the approval of the Project Team.
Notwithstanding any State or local law, the Mayor of the District of Columbia, in consultation with the National Capital Planning Commission and the Secretary, shall have exclusive authority to amend or modify the permanent system of highways of the District of Columbia as may be necessary to meet the requirements and needs of the Project.
Notwithstanding any State or local law, the Mayor of the District of Columbia shall have exclusive authority to convey or dispose of any interests in real estate (including air rights or air space as that term is defined by District of Columbia law) owned or controlled by the District of Columbia, as may be necessary to meet the requirements and needs of the Project.
Not later than 90 days following the date of receipt of notification from the Secretary of the requirements and needs of the Project, the Mayor of the District of Columbia shall convey or dispose of to the Board without compensation interests in real estate described in subparagraph (A).
The Mayor of the District of Columbia shall have the authority to enter into memoranda of agreement with the Board and any Federal or other governmental agency to facilitate the planning, design, engineering, and construction of the Project.
Upon completion of the Project, responsibility for maintenance and oversight of roadways and sidewalks modified or improved for the Project shall remain with the owner of the affected roadways and sidewalks.
Subject to paragraph (3), upon completion of the Project, responsibility for maintenance and oversight of any green spaces modified or improved for the Project shall remain with the owner of the affected green spaces.
Upon completion of the Project, the Board shall own, operate, and maintain the buildings and green spaces established on the Plaza for the Project.
The Secretary may realign national highways related to proposed changes to the Northern and Southern Interchanges and the E Street Approach recommended in the TEA–21 report in order to facilitate the flow of traffic in the vicinity of the Center.
The Secretary may improve direct access and egress between Interstate Route 66 and the Center, including its garages.
Until completion of the Project, the Comptroller General shall review the management and oversight of construction of the Project by the Board and report periodically on the results of the review to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate.
(Pub. L. 85–874, §12, as added Pub. L. 107–224, §2(2), Sept. 18, 2002, 116 Stat. 1340; amended Pub. L. 108–410, §3, Oct. 30, 2004, 118 Stat. 2303.)
Section 1214 of the Transportation Equity Act for the 21st Century, referred to in subsec. (a)(7), is section 1214 of Pub. L. 105–178, which enacted provisions set out as notes under sections 50 and 76j of this title, section 460m–29a of Title 16, Conservation, and section 202 of Title 23, Highways, and enacted provisions listed in a table of National Wildlife Refuges set out under section 668dd of Title 16.
A prior section 12 of Pub. L. 85–874 was renumbered section 13 and is classified to section 76r of this title.
2004—Subsec. (b)(6). Pub. L. 108–410, §3(a), added par. (6).
Subsec. (c)(1), (3). Pub. L. 108–410, §3(b)(1), (2), inserted “, in consultation with the Project Team,” after “The Board”.
Subsec. (c)(5). Pub. L. 108–410, §3(b)(3), added par. (5).
Subsec. (g). Pub. L. 108–410, §3(c), added subsec. (g).
There are authorized to be appropriated to the Board to carry out section 76j(a)(1)(H) of this title—
(1) $20,200,000 for fiscal year 2008;
(2) $21,800,000 for fiscal year 2009;
(3) $22,500,000 for fiscal year 2010;
(4) $23,500,000 for fiscal year 2011; and
(5) $24,500,000 for fiscal year 2012.
There are authorized to be appropriated to the Board to carry out subparagraphs (F) and (G) of section 76j(a)(1) of this title—
(1) $23,150,000 for fiscal year 2008;
(2) $16,000,000 for fiscal year 2009;
(3) $17,000,000 for fiscal year 2010;
(4) $17,000,000 for fiscal year 2011; and
(5) $18,500,000 for fiscal year 2012.
There is authorized to be appropriated to the Secretary of Transportation for capital costs incurred in the planning, design, engineering, and construction of the project authorized by section 76q–1 of this title (including roadway improvements related to the North and South Interchanges and construction of the John F. Kennedy Center Plaza, but not including construction of any buildings on the plaza) a total of $400,000,000 for fiscal years 2003 through 2010. Such sums shall remain available until expended.
There are authorized to be appropriated to the Board such sums as are necessary to carry out section 76m of this title, to remain available until expended.
No funds appropriated pursuant to this section may be used for any direct expense incurred in the production of a performing arts attraction, for personnel who are involved in performing arts administration (including any supply or equipment used by the personnel), or for production, staging, public relations, marketing, fundraising, ticket sales, or education. Funds appropriated directly to the Board shall not affect nor diminish other Federal funds sought for any performing arts function and may be used to reimburse the Board for that portion of costs that are Federal costs reasonably allocated to building services and theater maintenance and repair.
(Pub. L. 85–874, §13, formerly §12, as added Pub. L. 103–279, §7, July 21, 1994, 108 Stat. 1415; amended Pub. L. 105–226, §5, Aug. 12, 1998, 112 Stat. 1513; renumbered §13 and amended Pub. L. 107–224, §§2(1), 3, Sept. 18, 2002, 116 Stat. 1340, 1342; Pub. L. 108–410, §2, Oct. 30, 2004, 118 Stat. 2303; Pub. L. 109–306, §1, Oct. 6, 2006, 120 Stat. 1720; Pub. L. 110–338, §4, Oct. 3, 2008, 122 Stat. 3731.)
A prior section 13 of Pub. L. 85–874 was renumbered section 14 and is classified to section 76s of this title.
2008—Subsecs. (a), (b). Pub. L. 110–338, §4(1), added subsecs. (a) and (b) and struck out former subsecs. (a) and (b) which read as follows:
“(a) Maintenance, repair, and security.—There are authorized to be appropriated to the Board to carry out section 76j(a)(1)(H) of this title—
“(1) $17,000,000 for fiscal year 2004;
“(2) $18,000,000 for each of fiscal years 2005 and 2006; and
“(3) $19,100,000 for fiscal year 2007.
“(b) Capital projects.—There are authorized to be appropriated to the Board to carry out subparagraphs (F) and (G) of section 76j(a)(1) of this title—
“(1) $16,000,000 for fiscal year 2004;
“(2) $18,000,000 for each of fiscal years 2005 and 2006; and
“(3) $20,000,000 for fiscal year 2007.”
Subsecs. (d), (e). Pub. L. 110–338, §4(2), (3), added subsec. (d) and redesignated former subsec. (d) as (e).
2006—Subsec. (a). Pub. L. 109–306, §1(a), struck out “and” at end of par. (1), substituted “and 2006; and” for “, 2006, and 2007.” in par. (2), and added par. (3).
Subsec. (b). Pub. L. 109–306, §1(b), struck out “and” at end of par. (1), substituted “and 2006; and” for “, 2006, and 2007.” in par. (2), and added par. (3).
2004—Subsecs. (a), (b). Pub. L. 108–410 added subsecs. (a) and (b) and struck out former subsecs. (a) and (b) which read as follows:
“(a)
“(1) $13,000,000 for fiscal year 1999;
“(2) $14,000,000 for each of fiscal years 2000 and 2001; and
“(3) $15,000,000 for each of fiscal years 2002 and 2003.
“(b)
“(1) $20,000,000 for each of fiscal years 1999, 2000, and 2001;
“(2) $19,000,000 for fiscal year 2002; and
“(3) $17,000,000 for fiscal year 2003.”
2002—Subsecs. (c), (d). Pub. L. 107–224, §3, added subsec. (c) and redesignated former subsec. (c) as (d).
1998—Subsecs. (a), (b). Pub. L. 105–226 added subsecs. (a) and (b) and struck out former subsecs. (a) and (b) which read as follows:
“(a)
“(b)
As used in this subchapter, the terms “building and site of the John F. Kennedy Center for the Performing Arts” and “grounds of the John F. Kennedy Center for the Performing Arts” refer to the site in the District of Columbia on which the John F. Kennedy Center building is constructed and that extends to the line of the west face of the west retaining walls and curbs of the Inner Loop Freeway on the east, the north face of the north retaining walls and curbs of the Theodore Roosevelt Bridge approaches on the south, the east face of the east retaining walls and curbs of Rock Creek Parkway on the west, and the south curbs of New Hampshire Avenue and F Street on the north, as generally depicted on the map entitled “Transfer of John F. Kennedy Center for the Performing Arts”, numbered 844/82563, and dated April 20, 1994 (as amended by the map entitled “Transfer of John F. Kennedy Center for the Performing Arts”, numbered 844/82563A and dated May 22, 1997), which shall be on file and available for public inspection in the office of the National Capital Region, National Park Service, Department of the Interior. Upon completion of the project for establishment of the John F. Kennedy Center Plaza authorized by section 76q–1 of this title, the Board, in consultation with the Secretary of Transportation, shall amend the map that is on file and available for public inspection under the preceding sentence.
(Pub. L. 85–874, §14, formerly §13, as added Pub. L. 103–279, §8, July 21, 1994, 108 Stat. 1416; amended Pub. L. 105–95, §4, Nov. 19, 1997, 111 Stat. 2149; renumbered §14 and amended Pub. L. 107–224, §§2(1), 4(b), Sept. 18, 2002, 116 Stat. 1340, 1343.)
2002—Pub. L. 107–224, §4(b), inserted at end: “Upon completion of the project for establishment of the John F. Kennedy Center Plaza authorized by section 76q–1 of this title, the Board, in consultation with the Secretary of Transportation, shall amend the map that is on file and available for public inspection under the preceding sentence.”
1997—Pub. L. 105–95 inserted “(as amended by the map entitled ‘Transfer of John F. Kennedy Center for the Performing Arts’, numbered 844/82563A and dated May 22, 1997)” after “April 20, 1994”.
The area bounded by Seventh Street, Independence Avenue, Ninth Street, and Jefferson Drive, in the District of Columbia, is hereby appropriated to the Smithsonian Institution as the permanent site of a museum and the area bounded by Seventh Street, Jefferson Drive, Ninth Street, and Madison Drive, in the District of Columbia is hereby made available to the Smithsonian Institution as the permanent site of a sculpture garden, both areas to be used for the exhibition of works of art.
The Board of Regents of the Smithsonian Institution is authorized to remove any existing structure, to prepare architectural and engineering designs, plans, and specifications, and to construct a suitable museum within said area lying south of Jefferson Drive and to provide a sculpture garden for the use of the Smithsonian Institution within the areas designated in subsection (a) of this section.
(Pub. L. 89–788, §1, Nov. 7, 1966, 80 Stat. 1403.)
The museum and sculpture garden provided for by this subchapter shall be designated and known in perpetuity as the Joseph H. Hirshhorn Museum and Sculpture Garden, and shall be a free public museum and sculpture garden under the administration of the Board of Regents of the Smithsonian Institution. In administering the sculpture garden the Board shall cooperate with the Secretary of 1 Interior so that the development and use of the Garden is consistent with the open-space concept of the Mall, for which the Secretary of 1 Interior is responsible, and with related development regarding underground garages and street development.
The faith of the United States is pledged that the United States shall provide such funds as may be necessary for the upkeep, operation, and administration of the Joseph H. Hirshhorn Museum and Sculpture Garden.
The Joseph H. Hirshhorn Museum and Sculpture Garden shall be the permanent home of the collections of art of Joseph H. Hirshhorn and the Joseph H. Hirshhorn Foundation, and shall be used for the storage, exhibition, and study of works of art, and for the administration of the affairs of the Joseph H. Hirshhorn Museum and Sculpture Garden.
(Pub. L. 89–788, §2, Nov. 7, 1966, 80 Stat. 1403.)
1 So in original. Probably should be followed by “the”.
There is established in the Smithsonian Institution a Board of Trustees to be known as the Trustees of the Joseph H. Hirshhorn Museum and Sculpture Garden, which shall provide advice and assistance to the Board of Regents of the Smithsonian Institution on all matters relating to the administration, operation, maintenance, and preservation of the Joseph H. Hirshhorn Museum and Sculpture Garden; and which shall have the sole authority (i) to purchase or otherwise acquire (whether by gift, exchange, or other means) works of art for the Joseph H. Hirshhorn Museum and Sculpture Garden, (ii) to loan, exchange, sell, or otherwise dispose of said works of art, and (iii) to determine policy as to the method of display of the works of art contained in said museum and sculpture garden.
The Board of Trustees shall be composed of the Chief Justice of the United States and the Secretary of the Smithsonian Institution, who shall serve as ex officio members, and eight general members to be appointed as follows: Four of the general members first taking office shall be appointed by the President of the United States from among nominations submitted by Joseph H. Hirshhorn and four shall be appointed by the President from among nominations submitted by the Board of Regents of the Smithsonian Institution. The general members so appointed by the President shall have terms expiring one each on July 1, 1968, 1969, 1970, 1971, 1972, 1973, 1974, and 1975, as designated by the President. Successor general members (who may be elected from among members whose terms have expired) shall serve for a term of six years, except that a successor chosen to fill a vacancy occurring prior to the expiration of the term of office of his predecessor shall be chosen only for the remainder of such term. Vacancies occurring among general members of the Board of Trustees of the Joseph H. Hirshhorn Museum and Sculpture Garden shall be filled by a vote of not less than four-fifths of the then acting members of the Board of Trustees.
(Pub. L. 89–788, §3, Nov. 7, 1966, 80 Stat. 1404.)
The Board of Regents of the Smithsonian Institution may appoint and fix the compensation and duties of a director and, subject to his supervision, an administrator and two curators of the Joseph H. Hirshhorn Museum and Sculpture Garden, none of whose appointment, compensation, or duties shall be subject to the civil service laws or chapter 51 and subchapter III of chapter 53 of title 5. The Board of Regents may employ such other officers and employees as may be necessary for the efficient administration, operation, and maintenance of the Joseph H. Hirshhorn Museum and Sculpture Garden.
(Pub. L. 89–788, §4, Nov. 7, 1966, 80 Stat. 1404.)
“Chapter 51 and subchapter III of chapter 53 of title 5” substituted in text for “the Classification Act of 1949, as amended” on authority of Pub. L. 89–554, §7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.
There is authorized to be appropriated not to exceed $15,000,000 for the planning and construction of the Joseph H. Hirshhorn Museum and Sculpture Garden, and such additional sums as may be necessary for the maintenance and operation of such museum and sculpture garden.
(Pub. L. 89–788, §5, Nov. 7, 1966, 80 Stat. 1404.)
There is hereby established under the Smithsonian Institution a bureau to be known as a National Air and Space Museum, which shall be administered by the Smithsonian Institution with the advice of a board to be composed of the Chief of Staff of the Air Force, or his designee, the Chief of Naval Operations, or his designee, the Chief of Staff of the Army, or his designee, the Commandant of the Marine Corps, or his designee, the Commandant of the Coast Guard, or his designee, the Administrator of the National Aeronautics and Space Administration, or his designee, the Administrator of the Federal Aviation Administration, or his designee, the Secretary of the Smithsonian Institution, and three citizens of the United States appointed by the President from civilian life who shall serve at the pleasure of the President. The members of the board shall serve as such members without compensation but shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in the performance of their duties as members of the board.
The Secretary of the Smithsonian Institution, with the advice of the board, may appoint and fix the compensation and duties of the head of a national air and space museum whose appointment shall not be subject to the civil service laws.
(Aug. 12, 1946, ch. 955, §1, 60 Stat. 997; July 26, 1947, ch. 343, title II, §208(b), 61 Stat. 503; Pub. L. 89–509, pt. I, §§2, 3, July 19, 1966, 80 Stat. 310; Pub. L. 89–670, §§3(e), 6(c)(1), Oct. 15, 1966, 80 Stat. 932, 938.)
1966—Subsec. (a). Pub. L. 89–509, §2, changed the name of the museum from the National Air Museum to the National Air and Space Museum, expanded the advisory board to include additional members including the Chief of Staff of the Army, the Commandant of the Marine Corps, the Commandant of the Coast Guard, the Administrator of the National Aeronautics and Space Administration, the Administrator of the Federal Aviation Agency, and an additional member appointed from civilian life to serve at the pleasure of the President, and provided for reimbursement for travel, subsistence, and other necessary expenses incurred by them in the performance of their duties as members of the Board.
Subsec. (b). Pub. L. 89–509, §3, substituted “national air and space museum” for “national air museum” and struck out provision that the salary of the head of the museum shall not be subject to the Classification Act of 1923, as amended.
Section 1 of Pub. L. 89–509 provided: “That this Act [amending this section, sections 77a, 77c, and 77d of this title, and provisions set out as notes under this section and sections 77b and 77d of this title, and repealing section 77b of this title] may be cited as ‘the National Air Museum Amendments Act of 1965’.”
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.
“Chief of Staff of the Air Force” substituted in subsec. (a) for “Commanding General of the Army Air Forces” pursuant to act July 26, 1947, ch. 343, title II, §208(b), 61 Stat. 503, which transferred functions of Commanding General of the Army Air Forces to Chief of Staff, United States Air Force. Section 208(b) of act July 26, 1947 was repealed by section 53 of act Aug. 10, 1956, ch. 1041, 70A Stat. 641. See sections 8031 and 8034 of Title 10, Armed Forces.
“Federal Aviation Administration” substituted in subsec. (a) for “Federal Aviation Agency” pursuant to Pub. L. 89–670, §§3(e), 6(c)(1), Oct. 15, 1966, 80 Stat. 932, 938, which transferred all functions, powers, and duties of Federal Aviation Agency and of Administrator and other offices and officers thereof to Secretary of Transportation and established a Federal Aviation Administration in Department of Transportation. See section 106 of Title 49, Transportation.
Section 6 of act Aug. 12, 1946, as amended by section 10 of Pub. L. 89–509, provided that: “There is hereby authorized to be appropriated the sum of $50,000 for the purposes of this Act [this subchapter] and there are hereby authorized to be appropriated annually hereafter such sums as may be necessary to maintain and administer said national air and space museum including salaries and all other necessary expenses.”
Pub. L. 104–222, Oct. 1, 1996, 110 Stat. 3025, provided that:
“The Board of Regents of the Smithsonian Institution is authorized to construct the Smithsonian Institution National Air and Space Museum Dulles Center at Washington Dulles International Airport.
“No appropriated funds may be used to pay any expense of the construction authorized by section 1.”
Pub. L. 103–57, Aug. 2, 1993, 107 Stat. 279, provided that:
“The Board of Regents of the Smithsonian Institution shall have authority to plan and design an extension of the National Air and Space Museum at Washington Dulles International Airport.
“There is authorized to be appropriated for fiscal years beginning after September 30, 1993, a total of $8,000,000 to carry out this Act.”
Section 11 of Pub. L. 89–509 provided that: “Payments of compensation heretofore made to the head of the National Air Museum at rates fixed by the Secretary of the Smithsonian Institution without regard to the Classification Act of 1949, as amended [chapter 51 and subchapter III of chapter 53 of Title 5, Government Organization and Employees] are hereby ratified and affirmed.”
The national air and space museum shall memorialize the national development of aviation and space flight; collect, preserve, and display aeronautical and space flight equipment of historical interest and significance; serve as a repository for scientific equipment and data pertaining to the development of aviation and space flight; and provide educational material for the historical study of aviation and space flight.
(Aug. 12, 1946, ch. 955, §2, 60 Stat. 998; Pub. L. 89–509, pt. I, §4, July 19, 1966, 80 Stat. 310.)
1966—Pub. L. 89–509 substituted “national air and space museum” for “national air museum”, inserted “and space flight” after “aviation” wherever appearing, and substituted “aeronautical and space flight equipment” for “aeronautical equipment”.
Section, act Aug. 12, 1946, ch. 955, §3, 60 Stat. 998, directed Secretary of Smithsonian Institution to investigate and survey suitable lands and buildings for selection as a site for national air museum and to make recommendations to Congress.
Pub. L. 85–935, Sept. 6, 1958, 72 Stat. 1794, as amended by Pub. L. 89–509, §§12, 13, July 19, 1966, 80 Stat. 311, 312, authorized and directed Regents of Smithsonian Institution to prepare plans and to construct a building for a National Air and Space Museum at a certain site with exact location to be approved by National Capital Planning Commission and design to be approved by Commission of Fine Arts and with supervision of work to be by Administrator of General Services Administration and also appropriated such sums as were necessary to carry out the work.
The board is authorized to adopt an official seal which shall be judicially noticed and to make such bylaws, rules, and regulations as it deems necessary for the administration of its functions. The board may function notwithstanding vacancies and six members of the board shall constitute a quorum for the transaction of business.
The Smithsonian Institution shall include in its annual report of its operations to Congress a statement of the operations of said national air and space museum, including all public and private moneys received and disbursed.
(Aug. 12, 1946, ch. 955, §4, 60 Stat. 998; Pub. L. 89–509, pt. I, §§6, 7, July 19, 1966, 80 Stat. 310, 311.)
1966—Subsec. (a). Pub. L. 89–509, §6, raised from three to six the number of board members required to constitute a quorum.
Subsec. (b). Pub. L. 89–509, §7, substituted “national air and space museum” for “national air museum”.
The heads of executive departments and independent agencies of the Government are authorized to transfer or loan to said national air and space museum without charge therefor, aircraft, spacecraft, aircraft and spacecraft parts, instruments, engines, or other aeronautical and space flight equipment or records for exhibition, historical, or educational purposes.
(Aug. 12, 1946, ch. 955, §5(a), 60 Stat. 998; Pub. L. 89–509, pt. I, §8, July 19, 1966, 80 Stat. 311.)
Section consists of subsec. (a) of section 5 of act Aug. 12, 1946. Subsec. (b) of said section is set out as a note below.
1966—Pub. L. 89–509 inserted “and independent agencies” after “departments”, “and space” after “national air”, “spacecraft,” after “aircraft,”, “and spacecraft” after “aircraft” in phrase “aircraft parts”, and “and space flight” after “aeronautical”.
Section 5(b) of act Aug. 12, 1946, as amended by section 9 of Pub. L. 89–509, provided that: “The Secretary of the Smithsonian Institution, with the advice of the Commission of Fine Arts, is authorized (1) to accept as a gift to the Smithsonian Institution from George H. Stephenson, of Philadelphia, Pennsylvania, a statue of Brigadier General William L. Mitchell of such character as may be deemed appropriate, and (2) without expense to the United States, to cause such statue to be erected at a suitable location on the grounds of the national air and space museum.”
The Secretary of the Smithsonian Institution is authorized to cooperate with any State, educational institution, or scientific organization in the United States for continuing paleontological investigations, and the excavation and preservation of fossil remains, in areas which will be flooded by the construction of Government dams or otherwise be made unavailable for such investigations because of such construction: Provided, That such investigations and activities shall not duplicate nor affect adversely similar operations being conducted by the Department of Interior in cooperation with the Smithsonian Institution.
(Aug. 15, 1949, ch. 427, §1, 63 Stat. 606.)
There is authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $65,000, which shall be available until expended for the above purposes: Provided, That at such time as the Smithsonian Institution is satisfied that any State agency, or any educational institution or scientific organization in any of the United States, is prepared to contribute to such investigation and when in its judgment such investigation shall appear meritorious, the Secretary of the Smithsonian Institution may make available for such investigation such amounts from this sum as shall be equal to the amounts contributed respectively by each such State agency, or educational institution or scientific organization: Provided further, That the amount to be made available from this sum for such investigation in cooperation with each such State agency, or educational institution or scientific organization, shall not exceed $10,000 in any fiscal year: Provided further, That all such cooperative work and division of the result thereof shall be under the direction of the Secretary of the Smithsonian Institution: Provided further, That where lands are involved which are controlled by the Government of the United States, cooperative work thereon shall be under the provisions of the Act of June 8, 1906 (16 U.S.C. 432, 433), and rules and regulations pertaining thereto.
(Aug. 15, 1949, ch. 427, §2, 63 Stat. 606.)
The President is authorized and directed to set aside within the Canal Zone an area in Gatun Lake known as Barro Colorado Island in which the natural features shall, except in event of declared national emergency, be left in their natural state for scientific observation and investigation.
(July 2, 1940, ch. 516, §1, 54 Stat. 724.)
For definition of Canal Zone, referred to in text, see section 3602(b) of Title 22, Foreign Relations and Intercourse.
Section was formerly classified to section 1381 of Title 48, Territories and Insular Possessions.
Joint Res. July 25, 1947, ch. 327, §3, 61 Stat. 451, provided that in the interpretation of this section, the date July 25, 1947, shall be deemed to be the date of termination of any state of war theretofore declared by Congress and of the national emergencies proclaimed by the President on Sept. 8, 1939, and May 27, 1941.
The purpose of setting aside such an area is to preserve and conserve its natural features, including existing flora and fauna, in as nearly a natural condition as possible, thus providing a place where duly qualified students can make observations and scientific investigations for increase of knowledge, under such conditions and regulations as may be prescribed by the Smithsonian Institution.
(July 2, 1940, ch. 516, §2, 54 Stat. 724; 1946 Reorg. Plan No. 3, §801, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1101.)
Section was formerly classified to section 1382 of Title 48, Territories and Insular Possessions.
“Smithsonian Institution” substituted in text for “Board of Directors of the Canal Zone Biological Area” by Reorg. Plan No. 3 of 1946, set out in the Appendix to Title 5, Government Organization and Employees.
The Smithsonian Institution shall (a) determine the policy, prescribe conditions under which studies may be pursued within the area, and promulgate regulations for carrying out the purposes of this subchapter; (b) be responsible for the construction and maintenance of laboratory and other facilities on the area provided for the use of students authorized to carry on studies within the confines of the area; (c) deposit into the Treasury of the United States sums donated or subscribed or collected to be expended for carrying out the purposes of this subchapter; (d) in its discretion, fixed 1 charges that may be made for use of laboratory or other facilities provided students authorized to make observations and investigations within the prescribed area and provide for the collection of such sums for deposit into the Treasury of the United States; (e) make such disposal of any moneys donated, subscribed, collected, or otherwise provided as in its judgment is to the best interest in carrying out the purpose of this subchapter: Provided, That sums contributed or appropriated for specific purposes shall be used for such purpose only; and (f) include in its annual report of its operations to Congress a statement of activities and operations during the preceding year.
(July 2, 1940, ch. 516, §4, 54 Stat. 724; 1946 Reorg. Plan No. 3, §801, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1101; Pub. L. 89–280, §2, Oct. 20, 1965, 79 Stat. 1012.)
Section was formerly classified to section 1384 of Title 48, Territories and Insular Possessions.
1965—Pub. L. 89–280 substituted provisions in cl. (f) requiring the Smithsonian Institution to include in its annual report of its operations to Congress a statement of activities and operations during the preceding year for provisions which required the Smithsonian Institution to submit to the Congress of the United States not later than the 15th day of each January a report of activities and operations during the preceding year.
“Smithsonian Institution” substituted in text for “Board of Directors of the Canal Zone Biological Area” and former clause (a) which provided for annual meetings of Board was superseded by Reorg. Plan No. 3 of 1946, set out in the Appendix to Title 5, Government Organization and Employees.
1 So in original. Probably should be “fix”.
The Smithsonian Institution may select and designate a resident manager to assist in carrying out the policy, conditions, and regulations approved by it in compliance with the purposes of this subchapter. The resident manager shall receive such compensation for his services as may be allowed by the Smithsonian Institution.
(July 2, 1940, ch. 516, §5, 54 Stat. 725; 1946 Reorg. Plan No. 3, §801, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1101.)
Section was formerly classified to section 1385 of Title 48, Territories and Insular Possessions.
References to the “Board of Directors of the Canal Zone Biological Area” and its “executive officer” changed to “Smithsonian Institution” and provisions for the appointment and compensation of said executive officer were superseded by Reorg. Plan No. 3 of 1946, set out in the Appendix to Title 5, Government Organization and Employees.
All moneys received by donation, subscription, fees, or otherwise, except the moneys appropriated pursuant to section 79e of this title, for carrying out the purposes of this subchapter shall be deposited into the Treasury as trust funds and are appropriated for such purposes. Disbursements of such funds shall be made by the Secretary of the Treasury through the Fiscal Service on requisitions or vouchers signed by or on authority of the Smithsonian Institution.
(July 2, 1940, ch. 516, §6, 54 Stat. 725; 1940 Reorg. Plan No. III, §1(a)(1), eff. June 30, 1940, 5 F.R. 2107, 54 Stat. 1231; 1946 Reorg. Plan No. 3, §801, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1101.)
Section was formerly classified to section 1386 of Title 48, Territories and Insular Possessions.
Functions of all officers of Department of the Treasury and functions of all agencies and employees of such Department transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and employees, by Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees.
“Smithsonian Institution” substituted in text for “executive officer of the Board of Directors of the Canal Zone Biological Area” by Reorg. Plan No. 3 of 1946, set out in the Appendix to Title 5.
“Fiscal Service” substituted in text for “Division of Disbursement” on authority of section 1(a)(1) of Reorg. Plan No. III of 1940, eff. June 30, 1940, 5 F.R. 2107, 54 Stat. 1231, set out in the Appendix to Title 5, which consolidated such division into Fiscal Service of Department of the Treasury. See section 306 of Title 31, Money and Finance.
There are authorized to be appropriated annually, from money in the Treasury of the United States not otherwise appropriated, such sums as are necessary for the administration of this subchapter and for the maintenance of laboratory or other facilities provided for carrying out the purposes of this subchapter.
(July 2, 1940, ch. 516, §7, 54 Stat. 725; Pub. L. 89–280, §1, Oct. 20, 1965, 79 Stat. 1012; Pub. L. 96–89, §1, Oct. 19, 1979, 93 Stat. 697; Pub. L. 98–57, §1, July 22, 1983, 97 Stat. 293.)
Section was formerly classified to section 1387 of Title 48, Territories and Insular Possessions.
1983—Pub. L. 98–57 struck out “, not to exceed $750,000” after “such sums”.
1979—Pub. L. 96–89 substituted “$750,000” for “$350,000”.
1965—Pub. L. 89–280 substituted “$350,000” for “$10,000”.
Section 2 of Pub. L. 98–57 provided that: “The provision in the first section of this Act [amending this section] shall take effect on October 1, 1983.”
Section 2 of Pub. L. 96–89 provided that: “The provision in section 1 of this Act [amending this section] shall take effect on October 1, 1979.”
There is established in the Smithsonian Institution a National Armed Forces Museum Advisory Board (hereinafter referred to as the Board), which shall provide advice and assistance to the Regents of the Smithsonian Institution on matters concerned with the portrayal of the contributions which the Armed Forces of the United States have made to American society and culture.
The Board shall be composed of eleven members, as follows:
(1) The Secretary of Defense, who shall serve as an ex officio member;
(2) The Secretary of the Smithsonian Institution, who shall serve as an ex officio member;
(3) Nine members appointed by the President, (A) three of whom shall be appointed from persons recommended by the Secretary of Defense to represent the Armed Forces, and (B) two of whom shall be appointed from among persons recommended by the Regents of the Smithsonian Institution. Not less than two members appointed by the President shall be from civilian life.
Members of the Board appointed by the President shall be appointed to serve for a period of six years; except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term and the terms of office of the members first appointed shall expire, as designated by the President at the time of appointment, three at the end of two years, three at the end of four years, and three at the end of six years.
Five members of the Board shall constitute a quorum and any vacancy in the Board shall not affect its power to function.
The members of the Board shall serve without compensation but shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in the performance of their duties as members of the Board.
The Board shall select officers from among its members biennially and shall make such bylaws, rules, and regulations as it deems necessary for the furtherance of its business.
(Pub. L. 87–186, §1, Aug. 30, 1961, 75 Stat. 414.)
The Smithsonian Institution shall commemorate and display the contributions made by the military forces of the Nation toward creating, developing, and maintaining a free, peaceful, and independent society and culture in the United States of America. The valor and sacrificial service of the men and women of the Armed Forces shall be portrayed as an inspiration to the present and future generations of America. The demands placed upon the full energies of our people, the hardships endured, and the sacrifice demanded in our constant search for world peace shall be clearly demonstrated. The extensive peacetime contributions the Armed Forces have made to the advance of human knowledge in science, nuclear energy, polar and space exploration, electronics, engineering, aeronautics, and medicine shall be graphically described. The Smithsonian Institution shall interpret through dramatic display significant current problems affecting the Nation's security. It shall be equipped with a study center for scholarly research into the meaning of war, its effect on civilization, and the role of the Armed Forces in maintaining a just and lasting peace by providing a powerful deterrent to war. In fulfilling its purposes, the Smithsonian Institution shall collect, preserve, and exhibit military objects of historical interest and significance.
The provisions of this subchapter in no way rescind subchapter VII of this chapter, which established the National Air and Space Museum of the Smithsonian Institution, or any other authority of the Smithsonian Institution.
(Pub. L. 87–186, §2, Aug. 30, 1961, 75 Stat. 414; Pub. L. 89–509, pt. I, §2, July 19, 1966, 80 Stat. 310.)
“National Air and Space Museum” substituted for “National Air Museum” in subsec. (b) pursuant to section 2 of Pub. L. 89–509, which is classified to section 77 of this title.
The Board of Regents of the Smithsonian Institution is authorized and directed, with the advice and assistance of the Board, to investigate and survey lands and buildings in and near the District of Columbia suitable for the display of military collections. The Board of Regents of the Smithsonian Institution shall, after consulting with and seeking the advice of the Commission on Fine Arts, the National Capital Planning Commission, and the General Services Administration, submit recommendations to the Congress with respect to the acquisition of lands and buildings for such purpose.
Buildings acquired pursuant to recommendations made under subsection (a) of this section shall be used to house public exhibits and study collections that are not appropriate for the military exhibits of the Smithsonian Institution on the Mall in the District of Columbia. Facilities shall be provided for the display of large military objects and for the reconstruction, in an appropriate way, on lands acquired pursuant to recommendations made under subsection (a) of this section, of exhibits showing the nature of fortifications, trenches, and other military and naval facilities characteristic of the American colonial period, the War of the Revolution, and subsequent American military and naval operations.
(Pub. L. 87–186, §3, Aug. 30, 1961, 75 Stat. 415.)
The heads of executive departments and independent agencies of the Government are authorized to transfer or loan to the Smithsonian Institution for its use without charge therefor military, naval, aeronautical, and space objects, equipment and records for exhibition, historical, or other appropriate purposes.
(Pub. L. 87–186, §4, Aug. 30, 1961, 75 Stat. 415.)
There are authorized to be appropriated to the Smithsonian Institution such sums as may be necessary for the purposes of this subchapter.
(Pub. L. 87–186, §5, Aug. 30, 1961, 75 Stat. 415.)
The Congress hereby finds and declares—
(1) that a living institution expressing the ideals and concerns of Woodrow Wilson would be an appropriate memorial to his accomplishments as the twenty-eighth President of the United States, a distinguished scholar, an outstanding university president, and a brilliant advocate of international understanding;
(2) that the Woodrow Wilson Memorial Commission, created by joint resolution of Congress, recommended that an International Center for Scholars be constructed in the District of Columbia in the area north of the proposed Market Square as part of the Nation's memorial to Woodrow Wilson;
(3) that such a center, symbolizing and strengthening the fruitful relation between the world of learning and the world of public affairs, would be a suitable memorial to the spirit of Woodrow Wilson; and
(4) that the establishment of such a center would be consonant with the purposes of the Smithsonian Institution, created by Congress in 1846 “for the increase and diffusion of knowledge among men.”
(Pub. L. 90–637, §2, Oct. 24, 1968, 82 Stat. 1357.)
Section 1 of Pub. L. 90–637 provided: “That this Act [enacting this subchapter] may be cited as the ‘Woodrow Wilson Memorial Act of 1968’.”
There is hereby established in the Smithsonian Institution a Woodrow Wilson International Center for Scholars and a Board of Trustees of the Center (hereinafter referred to as the “Center” and the “Board”), whose duties it shall be to maintain and administer the Center and site thereof and to execute such other functions as are vested in the Board by this subchapter.
The Board of Trustees shall be composed of 17 members as follows:
(1) the Secretary of State;
(2) the Secretary of Health and Human Services;
(3) the Secretary of Education;
(4) the Chairman of the National Endowment for the Humanities;
(5) the Secretary of the Smithsonian Institution;
(6) the Librarian of Congress;
(7) the Archivist of the United States;
(8) one member appointed by the President from time to time from within the Federal Government; and
(9) 9 members appointed by the President from private life.
Each member of the Board of Trustees specified in paragraphs (1) through (8) of subsection (b) of this section may designate another official to serve on the Board of Trustees in his stead.
Each member of the Board of Trustees appointed under paragraph (10) of subsection (b) of this section shall serve for a term of six years from the expiration of his predecessor's term; except that (1) any trustee appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term, and (2) the terms of office of the trustees first taking office shall begin on October 24, 1968, and shall expire as designated at the time of appointment, two at the end of two years, three at the end of four years, and three at the end of six years. No trustee of the Board chosen from private life shall be eligible to serve in excess of two consecutive terms, except that a trustee whose term has expired may serve until his successor has qualified.
The President shall designate a Chairman and a Vice Chairman from among the members of the Board chosen from private life.
(Pub. L. 90–637, §3, Oct. 24, 1968, 82 Stat. 1357; Pub. L. 95–426, title II, §206, Oct. 7, 1978, 92 Stat. 975; Pub. L. 101–268, Apr. 9, 1990, 104 Stat. 132; Pub. L. 105–277, div. G, subdiv. A, title XIII, §1335(i), Oct. 21, 1998, 112 Stat. 2681–788.)
1998—Subsec. (b). Pub. L. 105–277, §1335(i)(1)(A), substituted “17” for “19” in introductory provisions.
Subsec. (b)(7) to (10). Pub. L. 105–277, §1335(i)(1)(B)–(D), redesignated pars. (8) to (10) as (7) to (9), respectively, in par. (9) substituted “9” for “10”, and struck out former par. (7) which read as follows: “the Director of the United States Information Agency;”.
Subsec. (c). Pub. L. 105–277, §1335(i)(2), substituted “(8)” for “(9)”.
1990—Subsec. (b). Pub. L. 101–268, §1, amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The Board of Trustees shall be composed of sixteen members as follows:
“(1) the Secretary of State;
“(2) the Director of the United States Information Agency;
“(3) the Secretary of Health and Human Services;
“(4) the Chairman of the National Endowment for the Humanities;
“(5) the Secretary of the Smithsonian Institution;
“(6) the Librarian of Congress;
“(7) the Archivist of the United States;
“(8) one appointed by the President from time to time from within the Federal Government; and
“(9) eight appointed by the President from private life.”
Subsec. (c). Pub. L. 101–268, §2(1), substituted “(9)” for “(8)”.
Subsec. (d). Pub. L. 101–268, §2(2), substituted “(10)” for “(9)”.
1978—Subsec. (b). Pub. L. 95–426, §206(a)(1), substituted “sixteen” for “fifteen”.
Subsec. (b)(2) to (9). Pub. L. 95–426, §206(a)(2), (3), designated pars. (2) to (8) as (3) to (9), respectively, and added a new par. (2) “the Director of the International Communication Agency”.
Subsec. (c). Pub. L. 95–426, §206(b)(1), substituted “(8)” for “(7)”.
Subsec. (d). Pub. L. 95–426, §206(b)(2), substituted “(9)” for “(8)”.
Amendment by Pub. L. 105–277 effective Oct. 1, 1999, see section 1301 of Pub. L. 105–277, set out as a note under section 6531 of Title 22.
In administering the Center, the Board shall have all necessary and proper powers, which shall include but not be limited to the power to—
(1) appoint scholars, from the United States and abroad, and, where appropriate, provide stipends, grants, and fellowships to such scholars, and to hire or accept the voluntary services of consultants, advisory boards, and panels to aid the Board in carrying out its responsibilities;
(2) solicit, accept, and dispose of gifts, bequests, and devises of money, securities, and other property of whatsoever character for the benefit of the Center; any such money, securities, or other property shall, upon receipt, be deposited with the Smithsonian Institution, and unless otherwise restricted by the terms of the gift, expenditures shall be in the discretion of the Board for the purposes of the Center;
(3) obtain grants from, and make contracts with, State, Federal, local, and private agencies, organizations, institutions, and individuals;
(4) acquire such site as a location for the Center as may subsequently be authorized by the Congress;
(5) acquire, hold, maintain, use, operate, and dispose of any physical facilities, including equipment, necessary for the operation of the Center;
(6) appoint and fix the compensation and duties of the director and such other officers of the Center as may be necessary for the efficient administration of the Center; the director and two other officers of the Center may be appointed and compensated without regard to the provisions of title 5 governing appointments in the competitive service and chapter 51 and subchapter III of chapter 53 of title 5; and
(7) prepare plans and specifications for the Center, including the design and development of all buildings, facilities, open spaces, and other structures on the site in consultation with the President's Temporary Commission on Pennsylvania Avenue, or its successor, and with other appropriate Federal and local agencies, such plans to include an exterior classic frieze memorial to Woodrow Wilson.
The Board shall, in connection with acquisition of any site authorized by Congress, as provided for in paragraph (4) of subsection (a) of this section, provide, to businesses and residents displaced from any such site, relocation assistance, including payments and other benefits, equivalent to that authorized to displace businesses and residents under the Housing Act of 1949, as amended [42 U.S.C. 1441 et seq.]. The Board shall develop a relocation program for existing businesses and residents within the site and submit such program to the government of the District of Columbia for a determination as to its adequacy and feasibility. In providing such relocation assistance and developing such relocation program the Board shall utilize to the maximum extent the services and facilities of the appropriate Federal and local agencies.
(Pub. L. 90–637, §4, Oct. 24, 1968, 82 Stat. 1358; Pub. L. 95–286, §2, May 26, 1978, 92 Stat. 279.)
The Housing Act of 1949, as amended, referred to in subsec. (b), is act July 15, 1949, ch. 338, 63 Stat. 413, which is classified principally to chapter 8A (§1441 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 1441 of Title 42 and Tables.
1978—Subsec. (a)(2). Pub. L. 95–286 substituted “devises” for “devices”.
There is hereby established in the Center a Hubert H. Humphrey Fellowship in Social and Political Thought.
Each year the Board shall select a distinguished scholar, statesman, or cultural figure, from the United States or abroad, to serve at the Center for a period of up to one year as the Hubert H. Humphrey Fellow in Social and Political Thought (hereinafter in this section referred to as the “Humphrey Fellow”). Each Humphrey Fellow shall receive compensation in an amount, determined by the Board, not to exceed the annual income of the trust fund established under subsection (d) of this section.
Each Humphrey Fellow shall—
(1) deliver a Hubert H. Humphrey Memorial Lecture; and
(2) carry out such projects and work as are consistent with the Humphrey Fellowship.
The Board shall provide for the publication and dissemination of the Hubert H. Humphrey Memorial Lectures.
(1) There is hereby established in the Treasury of the United States a trust fund to be known as the Hubert H. Humphrey Fellowship Trust Fund (hereinafter in this section referred to as the “fund”). The Secretary of the Treasury shall deposit in the fund such sums as may be appropriated to the fund under subsection (f) of this section and shall receive into the Treasury and deposit into the fund such sums as may be received as contributions to the fund.
(2) The Secretary of the Treasury shall invest amounts in the fund in public debt securities with maturities suitable for the needs of the fund and bearing interest at prevailing market rates; and the interest on such investments shall be credited to and form a part of the fund.
(3) Notwithstanding section 80g(a)(2) of this title any gift, bequest, or devise of money, securities or other property for the benefit of the Hubert H. Humphrey Fellowship in Social and Political Thought received by the Board shall, upon receipt, be deposited into the fund as provided by paragraph (1).
The Secretary of the Treasury shall pay to the Board from amounts received as interest on investments under subsection (d)(2) of this section such sums as the Board determines are necessary and appropriate for the purposes of the Humphrey Fellowship.
There is authorized to be appropriated to the fund for the fiscal year beginning October 1, 1978, $1,000,000.
(Pub. L. 90–637, §5, as added Pub. L. 95–286, §1(2), May 26, 1978, 92 Stat. 278.)
The Board is authorized to adopt an official seal which shall be judicially noticed and to make such bylaws, rules, and regulations as it deems necessary for the administration of its functions under this subchapter, including, among other matters, bylaws, rules, and regulations relating to the administration of its trust funds and the organization and procedure of the Board. A majority of the members of the Board shall constitute a quorum for the transaction of business.
(Pub. L. 90–637, §6, formerly §5, Oct. 24, 1968, 82 Stat. 1359, renumbered Pub. L. 95–286, §1(1), May 26, 1978, 92 Stat. 278.)
There are hereby authorized to be appropriated to the Board such funds as may be necessary to carry out the purposes of this subchapter: Provided, That no more than $200,000 shall be authorized for appropriation through fiscal year 1970 and no part of that appropriation shall be available for construction purposes.
(Pub. L. 90–637, §7, formerly §6, Oct. 24, 1968, 82 Stat. 1359, renumbered Pub. L. 95–286, §1(1), May 26, 1978, 92 Stat. 278.)
The accounts of the Board shall be audited in accordance with the principles and procedures applicable to, and as part of, the audit of the other Federal and trust funds of the Smithsonian Institution.
(Pub. L. 90–637, §8, formerly §7, Oct. 24, 1968, 82 Stat. 1359, renumbered Pub. L. 95–286, §1(1), May 26, 1978, 92 Stat. 278.)
The Board of Regents of the Smithsonian Institution (hereinafter in this subchapter referred to as the “Board”) is authorized to accept a deed or other instrument donating and transferring to the Smithsonian Institution, the land and improvements thereto, collections of works of art, and all other assets and property of the Museum of African Art.
(Pub. L. 95–414, §1, Oct. 5, 1978, 92 Stat. 911.)
Section 7 of Pub. L. 95–414 provided that: “Except for the provisions in sections 1 and 6(b) [this section and section 80p(b) of this title], the provisions of this Act [this subchapter] shall take effect on the date of transfer of a deed or other instrument under the provisions of section 1 [this section].”
There is established in the Smithsonian Institution a bureau which shall be known as the “Museum of African Art” (hereinafter in this subchapter referred to as the “Museum”). The functions of such bureau shall be those authorized by section 80m(a) of this title.
(Pub. L. 95–414, §2, Oct. 5, 1978, 92 Stat. 911.)
Regents of Smithsonian Institution authorized to construct building for National Museum of African Art, see Pub. L. 97–203, June 24, 1982, 96 Stat. 129, set out as a note under section 50 of this title.
For the purpose of carrying out sections 80k and 80l of this title, the Board may—
(1) purchase, accept, borrow, or otherwise acquire additional works of art or any other real or personal property for the Museum;
(2) preserve, maintain, restore, display, loan, transfer, store, or otherwise hold any property of whatsoever nature acquired pursuant to section 80k of this title or paragraph (1) of this subsection;
(3) conduct programs of research and education; and
(4) subject to any limitations otherwise expressly provided by law, and, in the case of any gift, subject to any applicable restrictions under the terms of such gift, sell, exchange, or otherwise dispose of any property of whatsoever nature acquired pursuant to the provisions of this subchapter: Provided, That the proceeds from the sale of any property acquired pursuant to section 80k of this title shall be designated for the benefit of the Museum.
In carrying out the purposes of this subchapter, the Board shall consider the recommendations of the Commission established pursuant to section 80n of this title.
(Pub. L. 95–414, §3, Oct. 5, 1978, 92 Stat. 911.)
There is established a Commission for the Museum of African Art (hereinafter the “Commission”) which shall provide advice and assistance to the Board concerning the operation and development of the Museum, its collections and programs.
The Commission shall consist of fifteen members to be appointed by the Board. In addition, the Secretary and an Assistant Secretary of the Smithsonian Institution shall serve as ex officio members. The Board shall appoint to the first term on the Commission no less than ten members of the Board of Trustees of the Museum of African Art who are serving on October 5, 1978. Each initial member so appointed shall serve for a three-year term. Thereafter, in appointing members of the Commission the Board shall continue to include representatives of African descendants in the United States, collectors of African Art, and scholars in the fields of African art and culture.
Members of the Commission shall be appointed to serve for a three-year term, except that after the appointment of the first term of the Commission as specified in subsection (b) of this section, the terms of office of members next appointed shall expire, as designated by the Board at the time of appointment, one-third at the end of one year, one-third at the end of two years, and one-third at the end of three years. Any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term. Members may be reappointed.
A majority of the appointed members of the Commission shall constitute a quorum and any vacancy in the Commission shall not affect its power to function.
Members of the Commission shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in the performance of their duties.
The Commission shall select officers, from among its members biennially and shall make bylaws to carry out its functions under this subchapter.
(Pub. L. 95–414, §4, Oct. 5, 1978, 92 Stat. 911.)
The Board may appoint and fix the compensation and duties of the Director and such other officers and employees of the Museum as may be necessary for the efficient administration, operation, and maintenance of the Museum; the Director and two other employees of the Museum may be appointed and compensated without regard to the provisions of title 5 governing appointments in the competitive service and chapter 51 and subchapter III of chapter 53 of title 5; and all of the employees of the Museum who are serving on the date of the transfer authorized under section 80k of this title shall be offered employment by the Smithsonian under its usual terms of employment and may be appointed without regard to the provisions of title 5 governing appointments in the competitive service and chapter 51 and subchapter III of chapter 53 of title 5.
(Pub. L. 95–414, §5, Oct. 5, 1978, 92 Stat. 912.)
The faith of the United States is pledged that upon the completion of the acquisition in section 80k of this title, the United States will provide such funds as may be necessary for the upkeep of the Museum and the administrative expenses and costs of operation thereof, including the protection and care of works of art acquired by the Board, so the Museum shall at all times be properly maintained and works of art contained therein shall be exhibited regularly to the general public free of charge.
There is authorized to be appropriated for the first fiscal year under this subchapter, the sum of $1,000,000 and such amounts as may be necessary for the succeeding fiscal years in order to carry out the provisions of this subchapter.
(Pub. L. 95–414, §6, Oct. 5, 1978, 92 Stat. 912.)
Section effective, except for the provisions in subsec. (b) of this section, on the date of transfer of a deed or other instrument under the provisions of section 80k of this title, see section 7 of Pub. L. 95–414, set out as a note under section 80k of this title.
The Congress finds that—
(1) there is no national museum devoted exclusively to the history and art of cultures indigenous to the Americas;
(2) although the Smithsonian Institution sponsors extensive Native American programs, none of its 19 museums, galleries, and major research facilities is devoted exclusively to Native American history and art;
(3) the Heye Museum in New York, New York, one of the largest Native American collections in the world, has more than 1,000,000 art objects and artifacts and a library of 40,000 volumes relating to the archaeology, ethnology, and history of Native American peoples;
(4) the Heye Museum is housed in facilities with a total area of 90,000 square feet, but requires a minimum of 400,000 square feet for exhibition, storage, and scholarly research;
(5) the bringing together of the Heye Museum collection and the Native American collection of the Smithsonian Institution would—
(A) create a national institution with unrivaled capability for exhibition and research;
(B) give all Americans the opportunity to learn of the cultural legacy, historic grandeur, and contemporary culture of Native Americans;
(C) provide facilities for scholarly meetings and the performing arts;
(D) make available curatorial and other learning opportunities for Indians; and
(E) make possible traveling exhibitions to communities throughout the Nation;
(6) by order of the Surgeon General of the Army, approximately 4,000 Indian human remains from battlefields and burial sites were sent to the Army Medical Museum and were later transferred to the Smithsonian Institution;
(7) through archaeological excavations, individual donations, and museum donations, the Smithsonian Institution has acquired approximately 14,000 additional Indian human remains;
(8) the human remains referred to in paragraphs (6) and (7) have long been a matter of concern for many Indian tribes, including Alaska Native Villages, and Native Hawaiian communities which are determined to provide an appropriate resting place for their ancestors;
(9) identification of the origins of such human remains is essential to addressing that concern; and
(10) an extraordinary site on the National Mall in the District of Columbia (U.S. Government Reservation No. 6) is reserved for the use of the Smithsonian Institution and is available for construction of the National Museum of the American Indian.
(Pub. L. 101–185, §2, Nov. 28, 1989, 103 Stat. 1336.)
Pub. L. 104–278, §1(a), Oct. 9, 1996, 110 Stat. 3355, provided that: “This Act [enacting section 80q–9a of this title and amending sections 80q–3, 80q–9, and 80q–10 of this title] may be cited as the ‘National Museum of the American Indian Act Amendments of 1996’.”
Section 1 of Pub. L. 101–185 provided that: “This Act [enacting this subchapter] may be cited as the ‘National Museum of the American Indian Act’.”
There is established, within the Smithsonian Institution, a living memorial to Native Americans and their traditions which shall be known as the “National Museum of the American Indian”.
The purposes of the National Museum are to—
(1) advance the study of Native Americans, including the study of language, literature, history, art, anthropology, and life;
(2) collect, preserve, and exhibit Native American objects of artistic, historical, literary, anthropological, and scientific interest;
(3) provide for Native American research and study programs; and
(4) provide for the means of carrying out paragraphs (1), (2), and (3) in the District of Columbia, the State of New York, and other appropriate locations.
(Pub. L. 101–185, §3, Nov. 28, 1989, 103 Stat. 1337.)
The Board of Regents is authorized to enter into an agreement with the Heye Foundation, to provide for the transfer to the Smithsonian Institution of title to the Heye Foundation assets. The agreement shall—
(1) require that the use of the assets be consistent with section 80q–1(b) of this title; and
(2) be governed by, and construed in accordance with, the law of the State of New York.
The United States District Court for the Southern District of New York shall have original and exclusive jurisdiction over any cause of action arising under the agreement.
(Pub. L. 101–185, §4, Nov. 28, 1989, 103 Stat. 1337.)
The National Museum shall be under a Board of Trustees with the duties, powers, and authority specified in this section.
The Board of Trustees shall—
(1) recommend annual operating budgets for the National Museum to the Board of Regents;
(2) advise and assist the Board of Regents on all matters relating to the administration, operation, maintenance, and preservation of the National Museum;
(3) adopt bylaws for the Board of Trustees;
(4) designate a chairman and other officers from among the members of the Board of trustees; 1 and
(5) report annually to the Board of Regents on the acquisition, disposition, and display of Native American objects and artifacts and on other appropriate matters.
Subject to the general policies of the Board of Regents, the Board of Trustees shall have the sole authority to—
(1) lend, exchange, sell, or otherwise dispose of any part of the collections of the National Museum, with the proceeds of such transactions to be used for additions to the collections of the National Museum or additions to the endowment of the National Museum, as the case may be;
(2) purchase, accept, borrow, or otherwise acquire artifacts and other objects for addition to the collections of the Natural Museum; and
(3) specify criteria for use of the collections of the National Museum for appropriate purposes, including research, evaluation, education, and method of display.
Subject to the general policies of the Board of Regents, the Board of Trustees shall have authority to—
(1) provide for restoration, preservation, and maintenance of the collections of the National Museum;
(2) solicit funds for the National Museum and determine the purposes to which such funds shall be applied; and
(3) approve expenditures from the endowment of the National Museum for any purpose of the Museum.
The initial membership of the Board of Trustees shall consist of—
(A) the Secretary of the Smithsonian Institution;
(B) an Assistant Secretary of the Smithsonian Institution appointed by the Board of Regents;
(C) 8 individuals appointed by the Board of Regents; and
(D) 15 individuals, each of whom shall be a member of the board of trustees of the Heye Museum, appointed by the Board of Regents from a list of nominees recommended by the board of trustees of the Heye Museum.
At least 7 of the 23 members appointed under subparagraphs (C) and (D) of paragraph (1) shall be Indians.
The trustee appointed under paragraph (1)(B) shall serve at the pleasure of the Board of Regents. The terms of the trustees appointed under subparagraph (C) or (D) of paragraph (1) shall be 3 years, beginning on the date of the transfer of the Heye Foundation assets to the Smithsonian Institution.
Any vacancy shall be filled only for the remainder of the term involved. Any vacancy appointment under paragraph (1)(D) shall not be subject to the source and recommendation requirements of that paragraph, but shall be subject to paragraph (2).
Upon the expiration of the terms under subsection (e) of this section, the Board of Trustees shall consist of—
(A) the Secretary of the Smithsonian Institution;
(B) a senior official of the Smithsonian Institution appointed by the Board of Regents; and
(C) 23 individuals appointed by the Board of Regents from a list of nominees recommended by the Board of Trustees.
A 2 least 12 of the 23 members appointed under paragraph (1)(C) shall be Indians.
The trustee appointed under paragraph (1)(B) shall serve at the pleasure of the Board of Regents. Except as otherwise provided in the next sentence, the terms of members appointed under paragraph (1)(C) shall be 3 years. Of the members first appointed under paragraph (1)(C)—
(A) 7 members, 4 of whom shall be Indians, shall be appointed for a term of one year, as designated at the time of appointment; and
(B) 8 members, 4 of whom shall be Indians, shall be appointed for a term of 2 years, as designated at the time of appointment.
Any vacancy shall be filled only for the remainder of the term involved.
A majority of the members of the Board of Trustees then in office shall constitute a quorum.
Members of the Board shall be entitled (to the same extent as provided in section 5703 of title 5 with respect to employees serving intermittently in the Government service) to per diem, travel, and transportation expenses for each day (including travel time) during which they are engaged in the performance of their duties.
(Pub. L. 101–185, §5, Nov. 28, 1989, 103 Stat. 1337; Pub. L. 104–278, §2, Oct. 9, 1996, 110 Stat. 3355.)
1996—Subsec. (f)(1)(B). Pub. L. 104–278 substituted “a senior official” for “an Assistant Secretary”.
1 So in original. Probably should be capitalized.
2 So in original. Probably should be “At”.
The Secretary of the Smithsonian Institution shall appoint—
(1) a Director who, subject to the policies of the Board of Trustees, shall manage the National Museum; and
(2) other employees of the National Museum, to serve under the Director.
Each employee of the Heye Museum on the day before the date of the transfer of the Heye Foundation assets to the Smithsonian Institution shall be offered employment with the Smithsonian Institution—
(1) under the usual terms of such employment; and
(2) at a rate of pay not less than the rate applicable to the employee on the day before the date of the transfer.
The Secretary may—
(1) appoint the Director, 2 employees under subsection (a)(2) of this section, and the employees under subsection (b) of this section without regard to the provisions of title 5, governing appointments in the competitive service;
(2) fix the pay of the Director and such 2 employees 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; and
(3) fix the pay of the employees under subsection (b) of this section in accordance with the provisions of chapter 51 and subchapter III of chapter 53 of such title, relating to classification and General Schedule pay rates, subject to subsection (b)(2) of this section.
(Pub. L. 101–185, §6, Nov. 28, 1989, 103 Stat. 1339.)
The Board of Regents shall plan, design, and construct a facility on the area bounded by Third Street, Maryland Avenue, Independence Avenue, Fourth Street, and Jefferson Drive, Southwest, in the District of Columbia to house the portion of the National Museum to be located in the District of Columbia. The Board of Regents shall pay not more than 2/3 of the total cost of planning, designing, and constructing the facility from funds appropriated to the Board of Regents. The remainder of the costs shall be paid from non-Federal sources.
Notwithstanding section 586(a) and (b) of title 40, the Administrator of General Services may lease, at a nominal charge, to the Smithsonian Institution space in the Old United States Custom House at One Bowling Green, New York, New York, to house the portion of the National Museum to be located in the city of New York. The lease shall be subject to such terms as may be mutually agreed upon by the Administrator and the Secretary of the Smithsonian Institution. The term of the lease shall not be less than 99 years.
The Administrator of General Services may reimburse the fund established by section 592 of title 40 for the difference between the amount charged to the Smithsonian Institution for leasing space under this paragraph and the commercial charge under section 586(a) and (b) of title 40 which, but for this paragraph, would apply to the leasing of such space. There are authorized to be appropriated to the Administrator such sums as may be necessary to carry out this subparagraph for fiscal years beginning after September 30, 1990.
The Board of Regents shall plan, design, and construct a significant facility for the National Museum in the space leased under paragraph (1).
The Administrator of General Services shall plan, design, and construct an auditorium and loading dock in the Old United States Custom House at One Bowling Green, New York, New York, for the shared use of all the occupants of the building, including the National Museum.
The facilities to be constructed under this paragraph shall have, in the aggregate, a total square footage of approximately 82,500 square feet.
After construction of the facility under paragraph (2)(A), repairs and alterations of the facility shall be the responsibility of the Board of Regents.
The Board of Regents shall reimburse the Administrator for the Smithsonian Institution's pro rata share of the cost of utilities, maintenance, cleaning, and other services incurred with respect to the space leased under paragraph (1) and the full cost of any repairs or alterations made by the General Services Administration at the request of the Smithsonian Institution with respect to the space.
The Board of Regents shall pay 1/3 of the costs of planning, designing, and constructing the facility under paragraph (2)(A) from funds appropriated to the Board of Regents. The remainder of the costs shall be paid from non-Federal sources.
Of the costs which are required to be paid from non-Federal sources under this paragraph, the city of New York, New York, and the State of New York have each agreed to pay $8,000,000 or an amount equal to 1/3 of the costs of planning, designing, and constructing the facility under paragraph (2)(A), whichever is less. Such payments shall be made to the Board of Regents in accordance with a payment schedule to be agreed upon by the city and State and the Board of Regents.
Federal funds may not be obligated for actual construction of a facility under paragraph (2)(A) in a fiscal year until non-Federal sources have paid to the Board of Regents the non-Federal share of such costs which the Board of Regents estimates will be incurred in such year.
The facility to be constructed under paragraph (2)(A) shall be known and designated as the “George Gustav Heye Center of the National Museum of the American Indian”.
The Board of Regents shall plan, design, and construct a facility for the conservation and storage of the collections of the National Museum at the Museum Support Center of the Smithsonian Institution.
The facilities to be constructed under this section shall have, in the aggregate, a total square footage of at least 400,000 square feet.
The Board of Regents and the Administrator of General Services may enter into such agreements as may be necessary for planning, designing, and constructing facilities under this section (other than subsection (b)(2)(B)). Under such agreements, the Board of Regents shall transfer to the Administrator, from funds available for planning, designing, and constructing such facilities, such amounts as may be necessary for expenses of the General Services Administration with respect to planning, designing, and constructing such facilities.
Notwithstanding any other provision of this subchapter, funds appropriated for carrying out this section may not be obligated for actual construction of any facility under this section until the 60th day after the date on which the Board of Regents transmits to Congress a written analysis of the total estimated cost of the construction and a cost-sharing plan projecting the amount for Federal appropriations and for non-Federal contributions for the construction on a fiscal year basis.
(Pub. L. 101–185, §7, Nov. 28, 1989, 103 Stat. 1339.)
“Section 586(a) and (b) of title 40” substituted in subsec. (b)(1)(A) for “section 210(j) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490(j))”, “section 592 of title 40” substituted in subsec. (b)(1)(B) for “section 210(f) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490(f))”, and “section 586(a) and (b) of title 40” substituted in subsec. (b)(1)(B) for “section 210(j) of such Act” on authority of Pub. L. 107–217, §5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted Title 40, Public Buildings, Property, and Works.
Pub. L. 103–384, Oct. 22, 1994, 108 Stat. 4067, provided that:
“This Act may be cited as the ‘Native American Veterans’ Memorial Establishment Act of 1994’.
“The Congress finds the following:
“(1) Native Americans across the Nation—Indians, Native Alaskans, and Native Hawaiians—have a long, proud and distinguished tradition of service in the Armed Forces of the United States.
“(2) Native Americans have historically served in the Armed Forces of the United States in numbers which far exceed their representation in the population of the United States.
“(3) Native American veterans count among themselves a number of Medal of Honor recipients. Their numbers are also conspicuous in the ranks of those who have received other decorations for valor and distinguished service.
“(4) Native Americans have lost their lives in the service of their Nation and in the cause of peace.
“(5) The National Museum of the American Indian was established as a living memorial to Native Americans. Its mission is to advance knowledge and understanding of Native American cultures, including art, history, language, and the contributions Native Americans have made to our society.
“(6) The National Museum of the American Indian is an extraordinary site and an ideal location to establish a National Native American Veterans’ Memorial.
“(7) A National Native American Veterans’ Memorial would further the purposes of the National Museum of the American Indian by giving all Americans the opportunity to learn of the proud and courageous tradition of service of Native Americans in the Armed Forces of the United States.
“(a)
“(b)
“(c)
“(2) Any design so selected shall be subject to the approval of the Board of Regents of the Smithsonian Institution.
“(a)
“(b)
The Administrator of General Services shall make such repairs and alterations as may be necessary in the portion of the Old United States Custom House at One Bowling Green, New York, New York, which is not leased to the Board of Regents under section 80q–5(b) of this title and which, as of November 28, 1989, has not been altered.
There is authorized to be appropriated to the Administrator of General Services $25,000,000 from the fund established pursuant to section 592 of title 40 to carry out this section and section 80q–5(b)(2)(B) of this title.
(Pub. L. 101–185, §8, Nov. 28, 1989, 103 Stat. 1341.)
“Section 592 of title 40” substituted in subsec. (b) for “section 210(f) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490(f))” on authority of Pub. L. 107–217, §5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted Title 40, Public Buildings, Property, and Works.
The Board of Regents shall—
(1) assure that, on the date on which a qualified successor to the Heye Foundation at Audubon Terrace first takes possession of Audubon Terrace, an area of at least 2,000 square feet at that facility is accessible to the public and physically suitable for exhibition of museum objects and for related exhibition activities;
(2) upon written agreement between the Board and any qualified successor, lend objects from the collections of the Smithsonian Institution to the successor for exhibition at Audubon Terrace; and
(3) upon written agreement between the Board and any qualified successor, provide training, scholarship, technical, and other assistance (other than operating funds) with respect to the area referred to in paragraph (1) for the purposes described in that paragraph.
Any charge by the Board of Regents for activities pursuant to agreements under paragraph (2) or (3) of subsection (a) of this section shall be determined according to the ability of the successor to pay.
As used in this section, the terms “qualified successor to the Heye Foundation at Audubon Terrace”, “qualified successor”, and,1 “successor” mean an organization described in section 501(c)(3) of title 26, and exempt from tax under section 501(a) of title 26, that, as determined by the Board of Regents—
(1) is a successor occupant to the Heye Foundation at Audubon Terrace, 3753 Broadway, New York, New York;
(2) is qualified to operate the area referred to in paragraph (1) for the purposes described in that paragraph; and
(3) is committed to making a good faith effort to respond to community cultural interests in such operation.
(Pub. L. 101–185, §9, Nov. 28, 1989, 103 Stat. 1342.)
1 So in original. The comma probably should not appear.
In entering into agreements with museums and other educational and cultural organizations to—
(1) lend Native American artifacts and objects from any collection of the Smithsonian Institution;
(2) sponsor or coordinate traveling exhibitions of artifacts and objects; or
(3) provide training or technical assistance;
the Board of Regents shall give priority to agreements with Indian organizations, including Indian tribes, museums, cultural centers, educational institutions, libraries, and archives. Such agreements may provide that loans or services to such organizations may be furnished by the Smithsonian Institution at minimal or no cost.
The Board of Regents may establish—
(1) programs to serve Indian tribes and communities; and
(2) in cooperation with educational institutions, including tribally controlled colleges or universities (as defined in section 1801(a) of title 25), programs to enhance the opportunities for Indians in the areas of museum studies, management, and research.
The Board of Regents shall establish an Indian Museum Management Fellowship program to provide stipend support to Indians for training in museum development and management.
There is authorized to be appropriated $2,000,000 for each fiscal year, beginning with fiscal year 1991, to carry out subsections (b) and (c) of this section.
(Pub. L. 101–185, §10, Nov. 28, 1989, 103 Stat. 1342; Pub. L. 105–244, title IX, §901(d), Oct. 7, 1998, 112 Stat. 1828; Pub. L. 110–315, title IX, §941(k)(2)(B), Aug. 14, 2008, 122 Stat. 3465.)
2008—Subsec. (b)(2). Pub. L. 110–315 substituted “tribally controlled colleges or universities (as defined in section 1801(a) of title 25)” for “tribally controlled community colleges (as defined in section 1801 of title 25)”.
1998—Subsec. (b)(2). Pub. L. 105–244 made technical amendment to reference in original act which appears in text as reference to section 1801 of title 25.
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.
(1) The Secretary of the Smithsonian Institution, in consultation and cooperation with traditional Indian religious leaders and government officials of Indian tribes, shall—
(A) inventory the Indian human remains and Indian funerary objects in the possession or control of the Smithsonian Institution; and
(B) using the best available scientific and historical documentation, identify the origins of such remains and objects.
(2) The inventory made by the Secretary of the Smithsonian Institution under paragraph (1) shall be completed not later than June 1, 1998.
(3) For purposes of this subsection, the term “inventory” means a simple, itemized list that, to the extent practicable, identifies, based upon available information held by the Smithsonian Institution, the geographic and cultural affiliation of the remains and objects referred to in paragraph (1).
If the tribal origin of any Indian human remains or Indian funerary object is identified by a preponderance of the evidence, the Secretary shall so notify any affected Indian tribe at the earliest opportunity.
If any Indian human remains are identified by a preponderance of the evidence as those of a particular individual or as those of an individual culturally affiliated with a particular Indian tribe, the Secretary, upon the request of the descendants of such individual or of the Indian tribe shall expeditiously return such remains (together with any associated funerary objects) to the descendants or tribe, as the case may be.
If any Indian funerary object not associated with Indian human remains is identified by a preponderance of the evidence as having been removed from a specific burial site of an individual culturally affiliated with a particular Indian tribe, the Secretary, upon the request of the Indian tribe, shall expeditiously return such object to the tribe.
Nothing in this section shall be interpreted as—
(1) limiting the authority of the Smithsonian Institution to return or repatriate Indian human remains or Indian funerary objects to Indian tribes or individuals; or
(2) delaying actions on pending repatriation requests, denying or otherwise affecting access to the courts, or limiting any procedural or substantive rights which may otherwise be secured to Indian tribes or individuals.
There is authorized to be appropriated $1,000,000 for fiscal year 1991 and such sums as may be necessary for succeeding fiscal years to carry out this section and section 80q–9a of this title.
(Pub. L. 101–185, §11, Nov. 28, 1989, 103 Stat. 1343; Pub. L. 104–278, §3, Oct. 9, 1996, 110 Stat. 3355.)
1996—Subsec. (a). Pub. L. 104–278, §3(a), designated existing provisions as par. (1), added pars. (2) and (3), and redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1).
Subsec. (f). Pub. L. 104–278, §3(b), inserted “and section 80q–9a of this title” after “to carry out this section”.
Not later than December 31, 1996, the Secretary of the Smithsonian Institution shall provide a written summary that contains a summary of unassociated funerary objects, sacred objects, and objects of cultural patrimony (as those terms are defined in subparagraphs (B), (C), and (D), respectively, of section 3001(3) of title 25, based upon available information held by the Smithsonian Institution. The summary required under this section shall include, at a minimum, the information required under section 3004 of title 25.
Where cultural affiliation of Native American unassociated funerary objects, sacred objects, and objects of cultural patrimony has been established in the summary prepared pursuant to subsection (a) of this section, or where a requesting Indian tribe or Native Hawaiian organization can show cultural affiliation by a preponderance of the evidence based upon geographical, kinship, biological, archaeological, anthropological, linguistic, folkloric, oral traditional, historical, or other relevant information or expert opinion, then the Smithsonian Institution shall expeditiously return such unassociated funerary object, sacred object, or object of cultural patrimony where—
(1) the requesting party is the direct lineal descendant of an individual who owned the unassociated funerary object or sacred object;
(2) the requesting Indian tribe or Native Hawaiian organization can show that the object was owned or controlled by the Indian tribe or Native Hawaiian organization; or
(3) the requesting Indian tribe or Native Hawaiian organization can show that the unassociated funerary object or sacred object was owned or controlled by a member thereof, provided that in the case where an unassociated funerary object or sacred object was owned by a member thereof, there are no identifiable lineal descendants of said member or the lineal descendants, upon notice, have failed to make a claim for the object.
If a known lineal descendant or an Indian tribe or Native Hawaiian organization requests the return of Native American unassociated funerary objects, sacred objects, or objects of cultural patrimony pursuant to this subchapter and presents evidence which, if standing alone before the introduction of evidence to the contrary, would support a finding that the Smithsonian Institution did not have the right of possession, then the Smithsonian Institution shall return such objects unless it can overcome such inference and prove that it has a right of possession to the objects.
Any museum of the Smithsonian Institution which repatriates any item in good faith pursuant to this subchapter shall not be liable for claims by an aggrieved party or for claims of fiduciary duty, public trust, or violations of applicable law that are inconsistent with the provisions of this subchapter.
Nothing in this section may be construed to prevent the Secretary of the Smithsonian Institution, with respect to any museum of the Smithsonian Institution, from making an inventory or preparing a written summary or carrying out the repatriation of unassociated funerary objects, sacred objects, or objects of cultural patrimony in a manner that exceeds the requirements of this subchapter.
For purposes of this section, the term “Native Hawaiian organization” has the meaning provided that term in section 3001(11) of title 25.
(Pub. L. 101–185, §11A, as added Pub. L. 104–278, §4, Oct. 9, 1996, 110 Stat. 3355.)
Not later than 120 days after November 28, 1989, the Secretary of the Smithsonian Institution shall appoint a special committee to monitor and review the inventory, identification, and return of Indian human remains and Indian funerary objects under section 80q–9 of this title and unassociated funerary objects, sacred objects, and objects of cultural patrimony under section 80q–9a of this title. In carrying out its duties, the committee shall—
(1) with respect to the inventory and identification, ensure fair and objective consideration and assessment of all relevant evidence;
(2) upon the request of any affected party or otherwise, review any finding relating to the origin or the return of such remains or objects;
(3) facilitate the resolution of any dispute that may arise between Indian tribes with respect to the return of such remains or objects; and
(4) perform such other related functions as the Secretary may assign.
The committee shall consist of 7 members, of whom—
(1) 4 members shall be appointed from among nominations submitted by Indian tribes and organizations;
(2) at least 2 members shall be traditional Indian religious leaders; and
(3) the Secretary shall designate one member as chairman.
The Secretary may not appoint to the committee any individual who is an officer or employee of the Government (including the Smithsonian Institution) or any individual who is otherwise affiliated with the Smithsonian Institution.
The Secretary shall ensure that the members of the committee have full and free access to the Indian human remains and Indian funerary objects subject to section 80q–9 of this title and to any related evidence, including scientific and historical documents.
Members of the committee shall—
(1) be paid the daily equivalent of the annual rate of basic pay payable for grade GS–18 of the General schedule under section 5332 of title 5; and
(2) be entitled (to the same extent as provided in section 5703 of such title, with respect to employees serving intermittently in the Government service) to per diem, travel, and transportation expenses;
for each day (including travel time) during which they are engaged in the performance of their duties.
The Secretary shall prescribe regulations and provide administrative support for the committee.
At the conclusion of the work of the committee, the Secretary shall be so 1 certify by report to the Congress. The committee shall cease to exist 120 days after the submission of the report.
The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the committee.
There is authorized to be appropriated $250,000 for fiscal year 1991 and such sums as may be necessary for succeeding fiscal years to carry out this section.
(Pub. L. 101–185, §12, Nov. 28, 1989, 103 Stat. 1344; Pub. L. 104–278, §5, Oct. 9, 1996, 110 Stat. 3357.)
The Federal Advisory Committee Act, referred to in subsec. (g), 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.
1996—Subsec. (a). Pub. L. 104–278, §5(1), in first sentence, inserted “and unassociated funerary objects, sacred objects, and objects of cultural patrimony under section 80q–9a of this title” before period.
Subsec. (b). Pub. L. 104–278, §5(2)(A), substituted “7 members” for “five members” in introductory provisions.
Subsec. (b)(1). Pub. L. 104–278, §5(2)(B), substituted “4 members” for “three members” and struck out “and” at end.
Subsec. (b)(2), (3). Pub. L. 104–278, §5(2)(C), (D), added par. (2) and redesignated former par. (2) as (3).
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, §101(c)(1)] of Pub. L. 101–509, set out in a note under section 5376 of Title 5.
1 So in original. Probably should be “shall so”.
The Secretary of the Smithsonian Institution shall—
(1) in conjunction with the inventory and identification under section 80q–9 of this title, inventory and identify the Native Hawaiian human remains and Native Hawaiian funerary objects in the possession of the Smithsonian Institution;
(2) enter into an agreement with appropriate Native Hawaiian organizations with expertise in Native Hawaiian affairs (which may include the Office of Hawaiian Affairs and the Malama I Na Kupuna O Hawai'i Nei) to provide for the return of such human remains nd 1 funerary objects; and
(3) to the greatest extent practicable, apply, with respect to such human remains and funerary objects, the principles and procedures set forth in sections 80q–9 and 80q–10 of this title with respect to the Indian human remains and Indian funerary objects in the possession of the Smithsonian Institution.
As used in this section—
(1) the term “Malama I Na Kupuna O Hawai'i Nei” means the nonprofit, Native Hawaiian organization, incorporated under the laws of the State of Hawaii by that name on April 17, 1989, the purpose of which is to provide guidance and expertise in decisions dealing with Native Hawaiian cultural issues, particularly burial issues; and
(2) the term “Office of Hawaiian Affairs” means the Office of Hawaiian Affairs established by the Constitution of the State of Hawaii.
(Pub. L. 101–185, §13, Nov. 28, 1989, 103 Stat. 1345.)
1 So in original. Probably should be “and”.
The Secretary of the Interior may make grants to Indian tribes to assist such tribes in reaching and carrying out agreements with—
(1) the Board of Regents for the return of Indian human remains and Indian funerary objects under section 80q–9 of this title; and
(2) other Federal and non-Federal entities for additional returns of Indian human remains and Indian funerary objects.
There is authorized to be appropriated $1,000,000 for fiscal year 1991 and such sums as may be necessary for succeeding fiscal years for grants under subsection (a) of this section.
(Pub. L. 101–185, §14, Nov. 28, 1989, 103 Stat. 1345.)
The Secretary of the Interior may make grants to Indian organizations, including Indian tribes, museums, cultural centers, educational institutions, libraries, and archives, for renovation and repair of museum facilities and exhibit facilities to enable such organizations to exhibit objects and artifacts on loan from the collections of the Smithsonian Institution or from other sources. Such grants may be made only from the Tribal Museum Endowment Fund.
In making grants under subsection (a) of this section, the Secretary may require the organization receiving the grant to contribute, in cash or in kind, not more than 50 percent of the cost of the renovation or repair involved. Such contribution may be derived from any source other than the Tribal Museum Endowment Fund.
There is established in the Treasury a fund, to be known as the “Tribal Museum Endowment Fund” (hereinafter in this subsection referred to as the “Fund”) for the purpose of making grants under subsection (a) of this section. The Fund shall consist of (A) amounts deposited and credited under paragraph (2), (B) obligations obtained under paragraph (3), and (C) amounts appropriated pursuant to authorization under paragraph (5).
The Secretary of the Interior is authorized to accept contributions to the Fund from non-Federal sources and shall deposit such contributions in the Fund. The Secretary of the Treasury shall credit to the Fund the interest on, and the proceeds from sale and redemption of, obligations held in the Fund.
The Secretary of the Treasury may invest any portion of the Fund in interest-bearing obligations of the United States. Such obligations may be acquired on original issue or in the open market and may be held to maturity or sold in the open market. In making investments for the Fund, the Secretary of the Treasury shall consult the Secretary of the Interior with respect to maturities, purchases, and sales, taking into consideration the balance necessary to meet current grant requirements.
Subject to appropriation, amounts derived from interest shall be available for expenditure from the Fund. The capital of the Fund shall not be available for expenditure.
There is authorized to be appropriated to the Fund $2,000,000 for each fiscal year beginning with fiscal year 1992.
(Pub. L. 101–185, §15, Nov. 28, 1989, 103 Stat. 1345.)
Subsec. (d) of this section, which required the Secretary of the Interior, in consultation with the Secretary of the Treasury, to submit an annual report to Congress on activities under 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 108 of House Document No. 103–7.
Pub. L. 102–196, Dec. 9, 1991, 105 Stat. 1620, directed Secretary of the Interior to conduct a study and make a report to Congress on the feasibility of establishing a Native American Cultural Center in Oklahoma City, Oklahoma, and made appropriations for that purpose.
As used in this subchapter—
(1) the term “Board of Regents” means the Board of Regents of the Smithsonian Institution;
(2) the term “Board of Trustees” means the Board of Trustees of the National Museum of the American Indian;
(3) the term “burial site” means a natural or prepared physical location, whether below, on, or above the surface of the earth, into which, as a part of a death rite or ceremony of a culture, individual human remains are deposited;
(4) the term “funerary object” means an object that, as part of a death rite or ceremony of a culture, is intentionally placed with individual human remains, either at the time of burial or later;
(5) the term “Heye Foundation assets” means the collections, endowment, and all other property of the Heye Foundation (other than the interest of the Heye Foundation in Audubon Terrace) described in the Memorandum of Understanding between the Smithsonian Institution and the Heye Foundation, dated May 8, 1989, and the schedules attached to such memorandum;
(6) the term “Heye Museum” means the Museum of the American Indian, Heye Foundation;
(7) the term “Indian” means a member of an Indian tribe;
(8) the term “Indian tribe” has the meaning given that term in section 450b of title 25;
(9) the term “National Museum” means the National Museum of the American Indian established by section 80q–1 of this title;
(10) the term “Native American” means an individual of a tribe, people, or culture that is indigenous to the Americas and such term includes a Native Hawaiian; and
(11) the term “Native Hawaiian” means a member or descendant of the aboriginal people who, before 1778, occupied and exercised sovereignty in the area that now comprises the State of Hawaii.
(Pub. L. 101–185, §16, Nov. 28, 1989, 103 Stat. 1346.)
There is authorized to be appropriated to the Board of Regents to carry out this subchapter (other than as provided in sections 80q–5(b)(1)(B), 80q–6, 80q–8, 80q–9, 80q–10, 80q–12, and 80q–13(c)(5) of this title)—
(1) $10,000,000 for fiscal year 1990; and
(2) such sums as may be necessary for each succeeding fiscal year.
Funds appropriated under subsection (a) of this section shall remain available without fiscal year limitation for any period prior to the availability of the facilities to be constructed under section 80q–5 of this title for administrative and planning expenses and for the care and custody of the collections of the National Museum.
(Pub. L. 101–185, §17, Nov. 28, 1989, 103 Stat. 1347.)
Congress finds that—
(1) since its founding, the United States has grown into a symbol of democracy and freedom around the world, and the legacy of African Americans is rooted in the very fabric of the democracy and freedom of the United States;
(2) there exists no national museum within the Smithsonian Institution that—
(A) is devoted to the documentation of African American life, art, history, and culture; and
(B) encompasses, on a national level—
(i) the period of slavery;
(ii) the era of Reconstruction;
(iii) the Harlem renaissance;
(iv) the civil rights movement; and
(v) other periods associated with African American life, art, history, and culture; and
(3) a National Museum of African American History and Culture would be dedicated to the collection, preservation, research, and exhibition of African American historical and cultural material reflecting the breadth and depth of the experiences of individuals of African descent living in the United States.
(Pub. L. 108–184, §2, Dec. 16, 2003, 117 Stat. 2676.)
Pub. L. 108–184, §1, Dec. 16, 2003, 117 Stat. 2676, provided that: “This Act [enacting this subchapter] may be cited as the ‘National Museum of African American History and Culture Act’.”
In this subchapter:
The term “Board of Regents” means the Board of Regents of the Smithsonian Institution.
The term “Council” means the National Museum of African American History and Culture Council established by section 80r–3 of this title.
The term “Museum” means the National Museum of African American History and Culture established by section 80r–2 of this title.
The term “Secretary” means the Secretary of the Smithsonian Institution.
(Pub. L. 108–184, §3, Dec. 16, 2003, 117 Stat. 2676.)
There is established within the Smithsonian Institution a museum to be known as the “National Museum of African American History and Culture”.
The purpose of the Museum shall be to provide for—
(1) the collection, study, and establishment of programs relating to African American life, art, history, and culture that encompass—
(A) the period of slavery;
(B) the era of Reconstruction;
(C) the Harlem renaissance;
(D) the civil rights movement; and
(E) other periods of the African American diaspora;
(2) the creation and maintenance of permanent and temporary exhibits documenting the history of slavery in America and African American life, art, history, and culture during the periods referred to in paragraph (1);
(3) the collection and study of artifacts and documents relating to African American life, art, history, and culture; and
(4) collaboration between the Museum and other museums, historically black colleges and universities, historical societies, educational institutions, and other organizations that promote the study or appreciation of African American life, art, history, or culture, including collaboration concerning—
(A) development of cooperative programs and exhibitions;
(B) identification, management, and care of collections; and
(C) training of museum professionals.
(Pub. L. 108–184, §4, Dec. 16, 2003, 117 Stat. 2677.)
There is established within the Smithsonian Institution a council to be known as the “National Museum of African American History and Culture Council”.
The Council shall—
(A) make recommendations to the Board of Regents concerning the planning, design, and construction of the Museum;
(B) advise and assist the Board of Regents on all matters relating to the administration, operation, maintenance, and preservation of the Museum;
(C) recommend annual operating budgets for the Museum to the Board of Regents;
(D) report annually to the Board of Regents on the acquisition, disposition, and display of objects relating to African American life, art, history, and culture; and
(E) adopt bylaws for the operation of the Council.
The Council, subject to the general policies of the Board of Regents, shall have sole authority to—
(A) purchase, accept, borrow, and otherwise acquire artifacts for addition to the collections of the Museum;
(B) loan, exchange, sell, and otherwise dispose of any part of the collections of the Museum, but only if the funds generated by that disposition are used for additions to the collections of the Museum; or
(C) specify criteria with respect to the use of the collections and resources of the Museum, including policies on programming, education, exhibitions, and research with respect to—
(i) the life, art, history, and culture of African Americans;
(ii) the role of African Americans in the history of the United States from the period of slavery to the present; and
(iii) the contributions of African Americans to society.
The Council, subject to the general policies of the Board of Regents, shall have authority—
(A) to provide for preservation, restoration, and maintenance of the collections of the Museum; and
(B) to solicit, accept, use, and dispose of gifts, bequests, and devises of personal property for the purpose of aiding and facilitating the work of the Museum.
The Council shall be composed of 19 voting members as provided under paragraph (2).
The Council shall include the following voting members:
(A) The Secretary of the Smithsonian Institution.
(B) One member of the Board of Regents, appointed by the Board of Regents.
(C) Seventeen individuals appointed by the Board of Regents—
(i) taking into consideration individuals recommended by organizations and entities that are committed to the advancement of knowledge of African American life, art, history, and culture; and
(ii) taking into consideration individuals recommended by the members of the Council.
The Board of Regents shall make initial appointments to the Council under paragraph (2) not later than 180 days after December 16, 2003.
Except as provided in this subsection, each appointed member of the Council shall be appointed for a term of 3 years.
As designated by the Board of Regents at the time of appointment, of the voting members first appointed under subparagraph (C) of subsection (c)(2) of this section—
(A) six members shall be appointed for a term of 1 year;
(B) six members shall be appointed for a term of 2 years; and
(C) five members shall be appointed for a term of 3 years.
A member of the Council may be reappointed, except that no individual may serve on the Council for a total of more than 2 terms. For purposes of this paragraph, the number of terms an individual serves on the Council shall not include any portion of a term for which an individual is appointed to fill a vacancy under paragraph (4)(B).
A vacancy on the Council—
(i) shall not affect the powers of the Council; and
(ii) shall be filled in the same manner as the original appointment was made.
Any member of the Council appointed to fill a vacancy occurring before the expiration of the term for which the member's predecessor was appointed shall be appointed for the remainder of that term.
Except as provided in paragraph (2), a member of the Council shall serve without pay.
A member of the Council shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for an employee of an agency under subchapter I of chapter 57 of title 5, while away from the home or regular place of business of the member in the performance of the duties of the Council.
By a majority vote of its voting members, the Council shall elect a chairperson from its members.
The Council shall meet at the call of the chairperson or on the written request of a majority of the voting members of the Council, but not fewer than twice each year.
During the 1-year period beginning on the date of the first meeting of the Council, the Council shall meet not fewer than 4 times for the purpose of carrying out the duties of the Council under this subchapter.
A majority of the voting members of the Council holding office shall constitute a quorum for the purpose of conducting business, but a lesser number may receive information on behalf of the Council.
(Pub. L. 108–184, §5, Dec. 16, 2003, 117 Stat. 2677.)
The Museum shall have a Director who shall be appointed by the Secretary, taking into consideration individuals recommended by the Council.
The Director shall manage the Museum subject to the policies of the Board of Regents.
The Secretary may appoint two additional employees to serve under the Director, except that such additional employees may be appointed without regard to the provisions of title 5 governing appointments in the competitive service.
The employees appointed by the Secretary under subsection (b) of this section may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5 relating to classification of positions and General Schedule pay rates.
(Pub. L. 108–184, §6, Dec. 16, 2003, 117 Stat. 2679.)
The Director of the Museum may carry out educational and liaison programs in support of the goals of the Museum.
In carrying out this section, the Director shall—
(A) carry out educational programs relating to African American life, art, history, and culture, including—
(i) programs using digital, electronic, and interactive technologies; and
(ii) programs carried out in collaboration with elementary schools, secondary schools, and postsecondary schools; and
(B) consult with the Director of the Institute of Museum and Library Services concerning the grant and scholarship programs carried out under subsection (b) of this section.
In consultation with the Council and the Director of the Museum, the Director of the Institute of Museum and Library Services shall establish—
(A) a grant program with the purpose of improving operations, care of collections, and development of professional management at African American museums;
(B) a grant program with the purpose of providing internship and fellowship opportunities at African American museums;
(C) a scholarship program with the purpose of assisting individuals who are pursuing careers or carrying out studies in the arts, humanities, and sciences in the study of African American life, art, history, and culture;
(D) in cooperation with other museums, historical societies, and educational institutions, a grant program with the purpose of promoting the understanding of modern-day practices of slavery throughout the world; and
(E) a grant program under which an African-American museum (including a nonprofit education organization the primary mission of which is to promote the study of African-American diaspora) may use the funds provided under the grant to increase an endowment fund established by the museum (or organization) as of May 1, 2003, for the purposes of—
(i) enhancing educational programming; and
(ii) maintaining and operating traveling educational exhibits.
There are authorized to be appropriated to the Director of the Institute of Museum and Library Services to carry out this subsection—
(A) $15,000,000 for fiscal year 2004; and
(B) such sums as are necessary for each fiscal year thereafter.
(Pub. L. 108–184, §7, Dec. 16, 2003, 117 Stat. 2679.)
Not later than 12 months after December 16, 2003, the Board of Regents shall designate a site for the Museum.
In designating a site under subparagraph (A), the Board of Regents shall select from among the following sites in the District of Columbia:
(i) The Arts and Industries Building of the Smithsonian Institution, located on the National Mall at 900 Jefferson Drive, Southwest, Washington, District of Columbia.
(ii) The area bounded by Constitution Avenue, Madison Drive, and 14th and 15th Streets, Northwest.
(iii) The site known as the “Liberty Loan site”, located on 14th Street Southwest at the foot of the 14th Street Bridge.
(iv) The site known as the “Banneker Overlook site”, located on 10th Street Southwest at the foot of the L'Enfant Plaza Promenade.
A site described in subparagraph (B) shall remain available until the date on which the Board of Regents designates a site for the Museum under subparagraph (A).
Except with respect to a site described in clause (i) of subparagraph (B), if the site designated for the Museum is in an area that is under the administrative jurisdiction of a Federal agency, as soon as practicable after the date on which the designation is made, the head of the Federal agency shall transfer to the Smithsonian Institution administrative jurisdiction over the area.
The Board of Regents shall carry out its duties under this paragraph in consultation with the following:
(i) The Chair of the National Capital Planning Commission.
(ii) The Chair of the Commission on Fine Arts.
(iii) The Chair and Vice Chair of the Presidential Commission referred to in section 80r–8 of this title.
(iv) The Chair of the Building and Site Subcommittee of the Presidential Commission referred to in section 80r–8 of this title.
(v) The Chair and ranking minority member of each of the following Committees:
(I) The Committee on Rules and Administration of the Senate.
(II) The Committee on House Administration of the House of Representatives.
(III) The Committee on Transportation and Infrastructure of the House of Representatives.
(IV) The Committee on Appropriations of the House of Representatives.
(V) The Committee on Appropriations of the Senate.
The Board of Regents, in consultation with the Council, may plan, design, and construct a building for the Museum, which shall be located at the site designated by the Board of Regents under this paragraph.
Chapter 89 of title 40 shall not apply with respect to the Museum.
The Board of Regents shall pay—
(1) 50 percent of the costs of carrying out this section from Federal funds; and
(2) 50 percent of the costs of carrying out this section from non-Federal sources.
There are authorized to be appropriated such sums as are necessary to carry out this section.
(Pub. L. 108–184, §8, Dec. 16, 2003, 117 Stat. 2680.)
Pub. L. 112–74, div. E, title III, Dec. 23, 2011, 125 Stat. 1033, provided in part: “That during fiscal year 2012 and any succeeding fiscal year, a single procurement for construction of the National Museum of African American History and Culture, as authorized under section 8 of the National Museum of African American History and Culture Act (20 U.S.C. 80r–6), may be issued that includes the full scope of the project”.
Authority under this subchapter to enter into contracts or to make payments shall be effective in any fiscal year only to the extent provided in advance in an appropriations Act, except as provided under section 80r–9(b) of this title.
(Pub. L. 108–184, §9, Dec. 16, 2003, 117 Stat. 2682.)
The Congressional Budget Act, referred to in section catchline, probably means the Congressional Budget Act of 1974, which is titles I through IX of Pub. L. 93–344, July 12, 1974, 88 Stat. 297, as amended. For complete classification of this Act to the Code, see Short Title note set out under section 621 of Title 2, The Congress, and Tables.
In carrying out their duties under this subchapter, the Council and the Board of Regents shall take into consideration the reports and plans submitted by the National Museum of African American History and Culture Plan for Action Presidential Commission under the National Museum of African American History and Culture Plan for Action Presidential Commission Act of 2001 (Public Law 107–106).
(Pub. L. 108–184, §10, Dec. 16, 2003, 117 Stat. 2682.)
The National Museum of African American History and Culture Plan for Action Presidential Commission Act of 2001, referred to in text, is Pub. L. 107–106, Dec. 28, 2001, 115 Stat. 1009, which is not classified to the Code.
There are authorized to be appropriated to the Smithsonian Institution to carry out this subchapter, other than sections 80r–5(b) and 80r–6 of this title—
(1) $17,000,000 for fiscal year 2004; and
(2) such sums as are necessary for each fiscal year thereafter.
Amounts made available under subsection (a) of this section shall remain available until expended.
Amounts appropriated pursuant to the authorization under this section may be used to conduct fundraising in support of the Museum from private sources.
(Pub. L. 108–184, §11, Dec. 16, 2003, 117 Stat. 2682.)
Congress finds as follows:
(1) A fundamental principle of American democracy is that individuals should stand up for their rights and beliefs and fight for justice.
(2) The actions of those who participated in the Civil Rights movement from the 1950s through the 1960s are a shining example of this principle in action, demonstrated in events as varied as the Montgomery Bus Boycott, the sit-ins, the Freedom Rides, the March on Washington, the drive for voting rights in Mississippi, and the March to Selma.
(3) While the Civil Rights movement had many visible leaders, including Thurgood Marshall, Dr. Martin Luther King, Jr., and Rosa Parks, there were many others whose impact and experience were just as important to the cause but who are not as well known.
(4) The participants in the Civil Rights movement possess an invaluable resource in their first-hand memories of the movement, and the recording of the retelling of their stories and memories will provide a rich, detailed history of our Nation during an important and tumultuous period.
(5) It is in the Nation's interest to undertake a project to collect oral histories of individuals from the Civil Rights movement so future generations will be able to learn of their struggle and sacrifice through primary-source, eyewitness material. A coordinated Federal project would also focus attention on the efforts undertaken by various public and private entities to collect and interpret articles in all formats relating to the Civil Rights movement, and serve as a model for future projects undertaken in museums, libraries, and universities throughout the Nation.
(6) The Library of Congress and the Smithsonian Institution are appropriate repositories to collect, preserve, and make available to the public a collection of these oral histories. The Library and Smithsonian have expertise in the management of documentation projects, and experience in the development of cultural and educational programs for the public.
It is the purpose of this subchapter to create a new federally sponsored, authorized, and funded project that will coordinate at a national level the collection of video and audio recordings of personal histories and testimonials of individuals who participated in the American Civil Rights movement that will build upon and complement previous and ongoing documentary work on this subject, and to assist and encourage local efforts to preserve the memories of such individuals so that Americans of all current and future generations may hear from them directly and better appreciate the sacrifices they made.
(Pub. L. 111–19, §2, May 12, 2009, 123 Stat. 1612.)
Pub. L. 111–19, §1, May 12, 2009, 123 Stat. 1612, provided that: “This Act [enacting this subchapter] may be cited as the ‘Civil Rights History Project Act of 2009’.”
Within the limits of available funds, the Librarian of Congress (hereafter referred to as the “Librarian”) and the Secretary of the Smithsonian Institution (hereafter referred to as the “Secretary)”,1 acting jointly, shall establish an oral history project—
(A) to survey, during the initial phase of the project, collections of audio and video recordings of the reminiscences of participants in the Civil Rights movement that are housed in archives, libraries, museums, and other educational institutions, as well as ongoing documentary work, in order to augment and complement these endeavors and avoid duplication of effort;
(B) to solicit, reproduce, and collect—
(i) video and audio recordings of personal histories and testimonials of individuals who participated in the Civil Rights movement, and
(ii) visual and written materials (such as letters, diaries, photographs, and ephemera) relevant to the personal histories of individuals;
(C) to create a collection of the recordings and other materials obtained, and to catalog and index the collection in a manner the Librarian and the Secretary consider appropriate; and
(D) to make the collection available for public use through the Library of Congress and the National Museum of African American History and Culture, as well as through such other methods as the Librarian and the Secretary consider appropriate.
The Secretary shall carry out the Secretary's duties under this subchapter through the Director of the National Museum of African American History and Culture.
The Librarian and the Secretary may carry out the activities described in subsection (a)(1) through agreements and partnerships entered into with other government and private entities, and may otherwise consult with interested persons (within the limits of available resources) and develop appropriate guidelines and arrangements for soliciting, acquiring, and making available recordings under the project under this subchapter.
In carrying out activities described in subsection (a)(1), the Librarian and the Secretary may—
(1) procure temporary and intermittent services under section 3109 of title 5;
(2) accept and utilize the services of volunteers and other uncompensated personnel and reimburse them for travel expenses, including per diem, as authorized under section 5703 of title 5; and
(3) make advances of money and payments in advance in accordance with section 3324 of title 31.
As soon as practicable after May 12, 2009, the Librarian and the Secretary shall begin collecting video and audio recordings and other materials under subsection (a)(1), and shall attempt to collect the first such recordings from the oldest individuals involved.
In this subchapter, the term “Civil Rights movement” means the movement to secure racial equality in the United States for African Americans that, focusing on the period 1954 through 1968, challenged the practice of racial segregation in the Nation and achieved equal rights legislation for all American citizens.
(Pub. L. 111–19, §3, May 12, 2009, 123 Stat. 1613.)
1 So in original. The closing quotation marks probably should precede the closing parenthesis.
The Librarian of Congress and the Secretary are encouraged to solicit and accept donations of funds and in-kind contributions to support activities under section 80s–1 of this title.
Notwithstanding any other provision of law—
(1) any funds donated to the Librarian of Congress to support the activities of the Librarian under section 80s–1 of this title shall be deposited entirely into an account established for such purpose;
(2) the funds contained in such account shall be used solely to support such activities; and
(3) the Librarian of Congress may not deposit into such account any funds donated to the Librarian which are not donated for the exclusive purpose of supporting such activities.
(Pub. L. 111–19, §4, May 12, 2009, 123 Stat. 1614.)
There are authorized to be appropriated to carry out this subchapter—
(1) $500,000 for fiscal year 2010; and
(2) such sums as may be necessary for each of the fiscal years 2011 through 2014.
(Pub. L. 111–19, §5, May 12, 2009, 123 Stat. 1615.)
The National Zoological Park is placed under the direction of the Regents of the Smithsonian Institution, who are authorized to transfer to it any living specimens, whether of animals or plants, in their charge, to accept gifts for the park at their discretion, in the name of the United States, to make exchanges of specimens, and to administer and improve the said Zoological Park for the advancement of science and the instruction and recreation of the people.
(Apr. 30, 1890, ch. 173, §2, 26 Stat. 78; Pub. L. 87–360, Oct. 4, 1961, 75 Stat. 779.)
1961—Pub. L. 87–360 inserted “and improve” after “administer”.
The National Zoological Park was established under provisions of the District of Columbia Appropriation Act for the Fiscal Year 1890, act Mar. 2, 1889, ch. 370, §4, 25 Stat. 808, which constituted a commission to select from a certain district along Rock Creek a tract of land, including a section of the creek, suitable for a zoological park, and to purchase the land so selected, or take proceedings for the condemnation thereof, the United States to have title to the land on payment therefor to the owners.
The Rock Creek Park was established by act Sept. 27, 1890, ch. 1001, 26 Stat. 492.
The Potomac Park was established by act Mar. 3, 1897, ch. 375, 29 Stat. 624.
Certain parcels of land were added to the National Zoological Park by acts June 5, 1920, ch. 235, §1, 41 Stat. 892; Mar. 4, 1921, ch. 161, §1, 41 Stat. 1384.
Provisions for a parkway connecting Potomac Park with Zoological Park and Rock Creek Park were made by act Mar. 4, 1913, ch. 147, §27, 37 Stat. 885.
The heads of executive departments of the Government are authorized and directed to cause to be rendered all necessary and practicable aid to the said Regents in the acquisition of collections for the Zoological Park.
(Apr. 30, 1890, ch. 173, §3, 26 Stat. 78.)
Section, act Aug. 18, 1894, ch. 301, §1, 28 Stat. 384, which required that a detailed report of expenses on account of the National Zoological Park be made to Congress at the beginning of each regular session, 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 192 of House Document No. 103–7.
All plans and specifications for the construction of buildings and bridges in the National Zoological Park shall be prepared under the supervision of the Smithsonian Institution.
(Aug. 24, 1912, ch. 355, §1, 37 Stat. 437; 1966 Reorg. Plan No. 4, eff. Aug. 23, 1966, 31 FR 11137, 80 Stat. 1611.)
Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, June 13, 1966, pursuant to the provisions of the Reorganization Act of 1949, 63 Stat. 203, as amended [see 5 U.S.C. 901 et seq.].
All those functions of the Board of Commissioners of the District of Columbia which were vested in the municipal architect of the District of Columbia by the provisions of the Act of August 24, 1912, c. 355, 37 Stat. 437 (20 U.S.C. 84; D.C. Code [former] §8–134), in respect of buildings of the National Zoological Park, and all functions of that Board which were vested in the engineer of bridges of the District of Columbia by those provisions in respect of bridges of the National Zoological Park, are hereby transferred to the Smithsonian Institution.
To the Congress of the United States:
I transmit herewith Reorganization Plan No. 4 of 1966, prepared in accordance with the Reorganization Act of 1949, as amended, and providing for a reorganization relating to the National Zoological Park located in the District of Columbia.
Today, all responsibilities for the administration of the park are vested in the Smithsonian Institution with one exception—the function of preparing plans and specifications for the construction of buildings and bridges at the zoo. That statutory responsibility is now conducted by the Board of Commissioners of the District of Columbia [now the Mayor].
Under the accompanying reorganization plan, the responsibility for the preparation of these plans and specifications would be transferred from the District of Columbia Board of Commissioners to the Smithsonian. The complete administration of the park would then be vested in one agency—the Smithsonian Institution. This will allow the more efficient and effective development and management of the park.
In 1912, the functions to be transferred were vested in the Municipal Architect of the District of Columbia and in the Engineers of the Bridges of the District of Columbia. In 1952, they were transferred to the Board of Commissioners.
When the 1912 act was passed, the District of Columbia shared the costs of capital improvements in the National Zoological Park. In 1961, it ceased sharing these costs, and the Federal Government assumed complete responsibility for financing the improvements. Accordingly, the District government retains no capital improvement responsibilities for the National Zoological Park except those functions relating to construction plans and specifications for buildings and bridges, as specified in the 1912 statute. Upon the transfer of these remaining functions to the Smithsonian Institution, the administration of the National Zoological Park will, at last, be fully centered in one agency. It is not practicable at this time, however, to itemize the resulting reduction in expenditures.
I have found, after investigation, that each reorganization included in the accompanying reorganization plan is necessary to accomplish one or more of the purposes set forth in section 2(a) of the Reorganization Act of 1949, as amended.
I recommend that the Congress allow the reorganization plan to become effective.
Lyndon B. Johnson.
The Board of Regents of the Smithsonian Institution, in furtherance of the mission of the National Zoological Park to provide for the advancement of science and instruction and recreation of the people, is authorized to negotiate agreements granting concessions at the National Zoological Park to nonprofit scientific, educational, or historic organizations. The net proceeds of such organizations gained from such concessions granted under this subsection shall be used exclusively for research and educational work for the benefit of the National Zoological Park.
The Smithsonian Institution is authorized to accept the voluntary services of such organizations, and the voluntary services of individuals, for the benefit of the National Zoological Park.
(Pub. L. 89–772, Nov. 6, 1966, 80 Stat. 1322.)
The facilities for study, research and illustration in the Government departments and in the following and any other governmental collections now existing or hereafter to be established in the city of Washington for the promotion of knowledge shall be accessible, under such rules and restrictions as the officers in charge of each department or collection may prescribe, subject to such authority as is now or may hereafter be permitted by law, to the scientific investigators and to duly qualified individuals, students and graduates of any institution of learning in the several States and Territories and the District of Columbia, to wit:
One. Of the Library of Congress.
Two. Of the National Museum.
Three. Of the United States Patent and Trademark Office.
Four. Of the Department of Education.
Five. Of the Bureau of Ethnology.
Six. Of the Army Medical Museum.
Seven. Of the Department of Agriculture.
Eight. Of the United States Fish and Wildlife Service.
Nine. Of the Botanic Gardens.
Ten. Of the National Ocean Survey.
Eleven. Of the United States Geological Survey.
Twelve. Of the Naval Observatory.
Thirteen. Of the Zoological Park.
Fourteen. Of the Government Printing Office.
(Apr. 12, 1892, No. 8, 27 Stat. 395; Mar. 3, 1901, ch. 831, §1, 31 Stat. 1039; May 14, 1928, ch. 551, §1, 45 Stat. 531; 1939 Reorg. Plan No. II, §4(e), eff. July 1, 1939, 4 F.R. 2731, 53 Stat. 1433; 1940 Reorg. Plan No. III, §3, eff. June 30, 1940, 5 F.R. 2108, 54 Stat. 1232; Aug. 8, 1956, ch. 1036, §3, 70 Stat. 1120; 1965 Reorg. Plan No. 2, eff. July 13, 1965, 30 F.R. 8819, 79 Stat. 1318; 1970 Reorg. Plan No. 4, eff. Oct. 3, 1970, 35 F.R. 15627, 84 Stat. 2090; Pub. L. 96–88, title III, §301(b)(2), title V, §507, Oct. 17, 1979, 93 Stat. 678, 692; Pub. L. 102–154, title I, Nov. 13, 1991, 105 Stat. 1000; Pub. L. 106–113, div. B, §1000(a)(9) [title IV, §4732(b)(10)], Nov. 29, 1999, 113 Stat. 1536, 1501A–584.)
Section is from a resolution adopted Apr. 12, 1892, the Deficiencies Appropriation Act of Mar. 3, 1901, and the Legislative Appropriations Act of May 14, 1928, providing that facilities for study and research be afforded to investigators, students, etc., in the several States and Territories as well as in the District of Columbia.
1999—Pub. L. 106–113 substituted “United States Patent and Trademark Office” for “Patent Office” in par. Three.
“United States Geological Survey” substituted for “Geological Survey” in par. Eleven pursuant to provision of title I of Pub. L. 102–154, set out as a note under section 31 of Title 43, Public Lands.
Coast and Geodetic Survey consolidated with National Weather Bureau in 1965 to form Environmental Science Services Administration by Reorg. Plan No. 2 of 1965, eff. July 13, 1965, 30 F.R. 8819, 79 Stat. 1318. Environmental Science Services Administration abolished in 1970 and its personnel, property, records, etc., transferred to National Oceanic and Atmospheric Administration by Reorg. Plan No. 4 of 1970, eff. Oct. 3, 1970, 35 F.R. 15627, 84 Stat. 2090. By order of Acting Associate Administrator of National Oceanic and Atmospheric Administration, 35 F.R. 19249, Dec. 19, 1970, Coast and Geodetic Survey redesignated National Ocean Survey. See notes set out under section 311 of Title 15, Commerce and Trade.
Amendment by Pub. L. 106–113 effective 4 months after Nov. 29, 1999, see section 1000(a)(9) [title IV, §4731] of Pub. L. 106–113, set out as a note under section 1 of Title 35, Patents.
Functions of all other officers of Department of Commerce and functions of all agencies and employees of such Department, with a few exceptions, transferred to Secretary of Commerce, with power vested in him to authorize their performance or performance of any of his functions by any of such officers, agencies, and employees, by Reorg. Plan No. 5 of 1950, §§1, 2, eff. May 24, 1950, 15 F.R. 3174, 64 Stat. 1263, set out in the Appendix to Title 5, Government Organization and Employees. United States Patents and Trademark Office, and National Ocean Survey, referred to in this section, are agencies within Department of Commerce.
Functions of all other officers of Department of the Interior and functions of all agencies and employees of such Department, with two exceptions, transferred to Secretary of the Interior, with power vested in him to authorize their performance or performance of any of his functions by any of such officers, agencies, and employees, by Reorg. Plan No. 3 of 1950, §§1, 2, eff. May 24, 1950, 15 F.R. 3174, 64 Stat. 1262, set out in the Appendix to Title 5.
Fish and Wildlife Service, created by Reorg. Plan No. III of 1940, eff. June 30, 1940, 5 F.R. 2107, 54 Stat. 1231, succeeded by United States Fish and Wildlife Service established by act Aug. 8, 1956, ch. 1036, §3, 70 Stat. 1120, which is classified to section 742b of Title 16, Conservation.
Bureau of Fisheries consolidated with Bureau of Biological Survey into Fish and Wildlife Service in Department of the Interior by Reorg. Plan No. III of 1940, set out in the Appendix to Title 5, Government Organization and Employees. The Bureau had been previously transferred to Department of the Interior by Reorg. Plan No. II of 1939, §4(e), also set out in the Appendix to Title 5.
For transfer of certain personal property and functions, insofar as they pertain to the Air Force, from Secretary of the Army and Department of the Army, to Secretary of the Air Force and Department of the Air Force, see Secretary of Defense Transfer Order Nos. 6, eff. Jan. 15, 1948; 39, May 18, 1949; 40 [App. B(69)], July 22, 1949.
“Department of Education” substituted in text for “Office of Education” pursuant to sections 301(b)(2) and 507 of Pub. L. 96–88, which are classified to sections 3441(b)(2) and 3507 of this title and which transferred Office of Education to Department of Education.
Functions of Federal Security Administrator transferred to Secretary of Health, Education, and Welfare and all agencies of Federal Security Agency transferred to Department of Health, Education, and Welfare by section 5 of Reorg. Plan No. 1 of 1953, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631, set out in the Appendix to Title 5, Government Organization and Employees. Federal Security Agency and office of Administrator abolished by section 8 of Reorg. Plan No. 1 of 1953.
Office of Education transferred to Federal Security Agency by Reorg. Plan No. I of 1939, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424, set out in the Appendix to Title 5.
Office of Education created and placed in Department of the Interior by act of July 20, 1868, ch. 176, 15 Stat. 106, which abolished Department of Education. In appropriation act of July 12, 1870, ch. 251, 16 Stat. 242, the Office was designated Bureau of Education. This designation was retained until the act of May 14, 1930, ch. 273, 46 Stat. 281, 319, which made appropriations for “Office of Education”.
National Museum was not created by any express statutory provision for that purpose. It was first mentioned in an appropriation for postage for “the National Museum in the Smithsonian Institution,” contained in act June 20, 1874, ch. 328, §1, 18 Stat. 103. An appropriation for a building for the use of the National Museum was made by act Mar. 3, 1879, ch. 182, §1, 20 Stat. 397, and annual appropriations have continuously been made for expenses of heating, etc., such building.
The professors, instructors, and students of the several land-grant, agricultural, and mechanical colleges of the United States shall be admitted to the marine biological station on the Gulf of Mexico on the coast of Florida, to pursue such investigation in fish culture and biology as may be practicable, without cost to the Government, under such rules and regulations as may be from time to time prescribed by the Secretary of Interior.
(Mar. 1, 1911, ch. 189, §2, 36 Stat. 964; Mar. 4, 1913, ch. 141, §1, 37 Stat. 736; Aug. 1, 1914, ch. 223, §1, 38 Stat. 665; 1939 Reorg. Plan No. II, §4(e), eff. July 1, 1939, 4 F.R. 2731, 53 Stat. 1433; 1940 Reorg. Plan No. III, §3, eff. June 30, 1940, 5 F.R. 2107, 54 Stat. 1231.)
Section consists of section 2 of act Mar. 1, 1911. Section 1 thereof authorizing the establishment of the marine biological station on the Gulf coast of the State of Florida, referred to in text, on the condition that the State of Florida donate the necessary land and water rights, is not classified to the Code. The provisions of said section 1 requiring donation of the required land and water rights by the State were amended by act Aug. 1, 1914, ch. 223, §1, 38 Stat. 665, which authorized the donation of the required land and water rights by a corporation, firm, or individual in addition to the State.
Bureau of Fisheries in Department of Commerce which administered marine biological station referred to in text under supervision of Secretary of Commerce transferred to Department of the Interior under direction of Secretary of the Interior by Reorg. Plan No. II of 1939, set out in the Appendix to Title 5, Government Organization and Employees, and by Reorg. Plan No. III of 1940, set out in the Appendix to Title 5. Bureau of Fisheries consolidated with Bureau of Biological Survey into Fish and Wildlife Service in Department of the Interior and under supervision of Secretary of the Interior, which was succeeded by United States Fish and Wildlife Service, see section 742b of Title 16, Conservation.
“Secretary of Commerce” substituted in text for “Secretary of Commerce and Labor” pursuant to act Mar. 4, 1913, which changed name of Department of Commerce and Labor to Department of Commerce.
The Fish and Wildlife Service established a marine biological station at Sarasota, Florida, during the year 1948.
Secretary of Commerce was authorized to dispose of the marine biological station at Key West, Fla., by act Apr. 29, 1929, ch. 2, 46 Stat. 2.
Under communication of the Fish and Wildlife Service dated Nov. 12, 1940, it was stated the land on which was situated this station was reconveyed to the Key West Realty Company by quit claim deed executed by the Secretary of Commerce.
Section 93, act Nov. 19, 1919, ch. 118, 41 Stat. 360, which related to sale of machine tools to trade, technical, and public schools and universities, had been transferred to section 1180a of former Title 10, Army and Air Force, and was later repealed by act Oct. 31, 1951.
Section 94, act May 26, 1928, ch. 760, 45 Stat. 753, which related to transfer of obsolete aeronautical equipment to museums, schools and colleges, had been transferred to section 1180b of former Title 10, Army and Air Force, was later repealed by act Oct. 31, 1951.
For the purpose of enabling the American Printing House for the Blind more adequately to provide books and apparatus for the education of the blind, there is hereby authorized to be appropriated annually to it, such sum as the Congress may determine; which sum shall be expended in accordance with the requirements of sections 101, 102, and 104 of this title, under rules and regulations prescribed by the Secretary of Education, to promote the education of the blind.
(Mar. 3, 1879, ch. 186, §§1, 2, 20 Stat. 468; June 25, 1906, ch. 3536, 34 Stat. 460; Aug. 4, 1919, ch. 31, 41 Stat. 272; Feb. 8, 1927, ch. 76, 44 Stat. 1060; Aug. 23, 1937, ch. 736, 50 Stat. 744; May 22, 1952, ch. 321, 66 Stat. 89; Aug. 2, 1956, ch. 882, §2, 70 Stat. 939; Pub. L. 87–294, §4, Sept. 22, 1961, 75 Stat. 627; Pub. L. 96–88, title III, §301(a)(2)(M), title V, §507, Oct. 17, 1979, 93 Stat. 678, 692; Pub. L. 100–630, title IV, §§402(a), 403, Nov. 7, 1988, 102 Stat. 3316.)
Prior to amendment by Pub. L. 100–630, section was comprised of two sentences. The first sentence was based on provisions of acts Mar. 3, 1879, and June 25, 1906, and established a perpetual trust fund for purposes of aiding education of the blind in the United States through the American Printing House for the Blind and a permanent annual appropriation thereof, to be expended for purposes authorized by sections 101, 102, and 104 of this title. The second sentence was based on provisions of act Aug. 4, 1919, as amended. See 1988 Amendment note below.
1988—Pub. L. 100–630, §402(a), which provided that the perpetual trust fund and permanent annual appropriations thereof established by the Act of Mar. 3, 1879, as amended by the Act of June 25, 1906, are terminated, was executed by striking the first sentence of this section which read as follows: “The sum of $250,000, set apart as a perpetual trust fund for the purpose of aiding the education of the blind in the United States, through the American Printing House for the Blind, shall be credited on the books of the Treasury Department as a perpetual trust fund for that purpose, to be held by the Secretary of the Treasury; and the sum of $10,000, being equivalent to 4 per centum on the principal of said trust fund, is appropriated, out of any moneys in the Treasury not otherwise appropriated, and such appropriation shall be deemed a permanent annual appropriation and shall be expended in the manner and for the purposes authorized by sections 101, 102, and 104 of this title.” See Codification note above.
Pub. L. 100–630, §403, struck out “In addition to the permanent appropriation of $10,000, made in this section”.
1961—Pub. L. 87–294 struck out provisions which authorized an annual appropriation of not more than $400,000, inserted provisions authorizing an annual appropriation of such sum as the Congress may determine, and required expenditure of such sum under rules and regulations prescribed by the Secretary of Health, Education, and Welfare.
1956—Act Aug. 2, 1956, increased appropriation authorization from $250,000 to $400,000.
1952—Act May 22, 1952, amended second sentence generally, increasing appropriation authorization from $115,000 to $250,000.
1937—Act Aug. 23, 1937, amended second sentence generally, increasing appropriation authorization from $65,000 to $115,000.
1927—Act Feb. 8, 1927, amended second sentence generally, increasing appropriation authorization from $40,000 to $65,000.
Section 402(b) of Pub. L. 100–630 provided that: “This section [amending this section] shall take effect on October 1, 1989.”
Section 5 of Pub. L. 87–294 provided that: “The amendments made by this Act [amending this section and section 102 of this title] shall be effective immediately after the date of its enactment [Sept. 22, 1961].”
Section 401 of title IV of Pub. L. 100–630 provided that: “This title [amending this section and enacting provisions set out as notes under this section] may be cited as the ‘American Printing House for the Blind Amendments of 1988’.”
“Secretary of Education” substituted in text for “Secretary of Health, Education, and Welfare” pursuant to sections 301(a)(2)(M) and 507 of Pub. L. 96–88, which are classified to sections 3441(a)(2)(M) and 3507 of this title and which transferred functions of Secretary of Health, Education, and Welfare under this chapter to Secretary of Education.
Functions of Federal Security Administrator transferred to Secretary of Health, Education, and Welfare and all agencies of Federal Security Agency transferred to Department of Health, Education, and Welfare by section 5 of Reorg. Plan No. 1 of 1953, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631, set out in the Appendix to Title 5, Government Organization and Employees. Federal Security Agency and office of Administrator abolished by section 8 of Reorg. Plan No. 1 of 1953.
Functions of Secretary of the Treasury over administration of appropriations for American Printing House for Blind (except function relating to administration of perpetual trust fund) transferred to Federal Security Agency, and annual report and vouchers of trustees directed to be furnished to Federal Security Administrator by Reorg. Plan No. II of 1939, §201(b), eff. July 1, 1939, 4 F.R. 2732, 53 Stat. 1434, set out in the Appendix to Title 5.
Section 404 of Pub. L. 100–630 provided that: “Any and all rights of the American Printing House for the Blind determined to have vested in the perpetual trust fund established by the Act of March 3, 1879 [see Codification note above], shall be deemed to be compensated by the appropriation to the American Printing House for the Blind for fiscal year 1990.”
Section 405 of Pub. L. 100–630 provided that: “Notwithstanding any Federal law, reference to the perpetual trust fund and permanent annual appropriations thereof established by the Act of March 3, 1879 [see Codification note above], shall not be given any effect.”
The Secretary of Education is authorized to pay over semiannually, to the trustees of the American Printing House for the Blind, located in Louisville, Kentucky, and chartered in 1858 by the Legislature of Kentucky, upon requisition of their president, countersigned by their treasurer, one-half of such annual appropriation upon the following conditions:
First. (A) Such appropriation shall be expended by the trustees of the American Printing House for the Blind each year in manufacturing and furnishing books and other materials specially adapted for instruction of the blind; and the total amount of such books and other materials so manufactured and furnished by such appropriation shall each year be distributed among all the public and private nonprofit institutions in the States, Territories, and possessions of the United States, the Commonwealth of Puerto Rico, and the District of Columbia, in which blind pupils are educated. Each public and private nonprofit institution for the education of the blind shall receive, in books and other materials, upon requisition of its superintendent, that portion of the appropriation as is shown by the ratio between the number of blind pupils in that institution and the total number of blind pupils in all of the public and private nonprofit institutions in which blind pupils are educated. Each chief State school officer shall receive, in books and other materials, upon requisition, that portion of the appropriation as is shown by the ratio between the number of blind pupils in public and private nonprofit institutions (in the State) in which blind pupils are educated, other than institutions to which the preceding sentence is applicable, and the total number of blind pupils in the public and private nonprofit institutions in which blind pupils are educated in all of the States, Territories, and possessions of the United States, the Commonwealth of Puerto Rico, and the District of Columbia. The ratio referred to in each of the two immediately preceding sentences shall be computed upon the first Monday in January of each year; and for purposes of such sentences the number of blind pupils in public and private nonprofit institutions in which blind pupils are educated shall be authenticated in such manner and as often as the trustees of the American Printing House for the Blind shall require. For purposes of sections 101, 102, and 104 of this title, an institution for the education of the blind is any institution which provides education exclusively for the blind, or exclusively for the blind and other handicapped children (in which case special classes are provided for the blind); the chief State school officer of a State is the superintendent of public elementary and secondary schools in such State or, if there is none, such other official as the Governor certifies to have comparable responsibility in the State; and a blind pupil is a blind individual pursuing a course of study in an institution of less than college grade.
(B) The portion of the appropriation received by each chief State school officer, in such books and other materials under subparagraph (A) of this paragraph which represents the number of blind pupils in private nonprofit institutions in such State in which blind pupils are educated shall be distributed among such institutions on the basis of the number of blind pupils in each such institution as compared to the total number of such pupils in all of the private nonprofit institutions in which blind pupils are educated in such State.
(C) All books and other materials furnished pursuant to sections 101, 102, and 104 of this title, and control and administration of their use, shall vest only in a public agency. Such books and materials made available pursuant to sections 101, 102 and 104 of this title for use of teachers and blind pupils in any State, Territory, or possession of the United States, the Commonwealth of Puerto Rico, and the District of Columbia in any school shall be limited to those books and materials which have been approved by an appropriate educational authority or agency of such State, Territory, possession, Commonwealth, or District, or any local educational authority thereof, for use, or are used, in a public elementary or secondary school therein.
Second. No part of the appropriation shall be expended in the erection or leasing of buildings; but the trustees of the American Printing House for the Blind may use each year a reasonable sum of the annual appropriation for salaries and other expenses of experts and other staff to assist special committees which may be appointed in performance of their functions, and for expenses of such special committees.
Third. No profit shall be put on any books or tangible apparatus for the instruction of the blind manufactured or furnished by the trustees of said American Printing House for the Blind, located in Louisville, Kentucky; and the price put upon each article so manufactured or furnished shall only be its actual cost.
Fourth. The Secretary of the Treasury of the United States shall have the authority to withhold the appropriation whenever he shall receive satisfactory proof that the trustees of said American Printing House for the Blind, located in Louisville, Kentucky, are not using the appropriation for the benefit of the blind in the public and private nonprofit institutions for the education of the blind in the United States.
Fifth. Before any money be paid to the treasurer of the American Printing House for the Blind by the Secretary of the Treasury of the United States, the treasurer of the American Printing House for the Blind shall execute a bond, with two approved sureties, to the amount of $20,000, conditioned that the money so received shall be expended according to this law and all amendments thereto, which shall be held by the Secretary of the Treasury of the United States, and shall be renewed every two years.
Sixth. The superintendent of each public institution for the education of the blind (or his designee) and the chief State school officer (or his designee), of each State and possession of the United States, the Commonwealth of Puerto Rico, and the District of Columbia, shall each, ex officio, be a member of the Board of Trustees of the American Printing House for the Blind only for purposes of administering sections 101, 102 and 104 of this title.
(Mar. 3, 1879, ch. 186, §3, 20 Stat. 468; June 25, 1906, ch. 3536, 34 Stat. 460; Aug. 2, 1956, ch. 882, §1, 70 Stat. 938; Pub. L. 87–294, §§1–3, Sept. 22, 1961, 75 Stat. 627; Pub. L. 91–230, title VIII, §811(a), (b), Apr. 13, 1970, 84 Stat. 194, 195; Pub. L. 96–88, title III, §301(a)(2)(M), title V, §507, Oct. 17, 1979, 93 Stat. 678, 692.)
For purposes of codification, the provisions of section 3 of act Mar. 3, 1879, were changed as follows: provision providing for payment of the semi-annual interest upon the bonds was substituted for one providing for payment of one-half the annual appropriation, the word “income” was substituted for “appropriation”, and the word “interest” was substituted for “money” in par. (5), to conform to the modification of act Mar. 3, 1879, by act June 25, 1906, as shown in the note set out under section 101 of this title.
1970—Par. First. Pub. L. 91–230, §811(a), designated existing provisions as subpar. (A), made provisions applicable to private nonprofit institutions, and added subpars. (B) and (C).
Par. Fourth. Pub. L. 91–230, §811(b), made provisions applicable to private nonprofit institutions.
1961—Pub. L. 87–294, §1, substituted “Secretary of Health, Education, and Welfare” for “Secretary of the Treasury of the United States” and struck out “permanent” before “annual appropriation” in opening clause.
Par. Second. Pub. L. 87–294, §2, authorized the trustees to use each year a reasonable sum of the annual appropriation for salaries and other expenses of experts and other staff to assist special committees which may be appointed in performance of their functions, and for expenses of such special committees.
Par. Sixth. Pub. L. 87–294, §3, substituted “superintendent of each public institution for the education of the blind (or his designee) and the chief State school officer (or his designee), of each State and possession of the United States, the Commonwealth of Puerto Rico, and the District of Columbia, shall” for “superintendents of the various public institutions for the education of the blind in the United States shall”, and limited the duties of the Board to the administration of sections 101, 102, and 104 of this title.
1956—Par. First. Act Aug. 2, 1956, authorized wider distribution of books and other special instructional material for the blind.
Amendment by Pub. L. 87–294 effective immediately after Sept. 22, 1961, see section 5 of Pub. L. 87–294, set out as a note under section 101 of this title.
“Secretary of Education” substituted for “Secretary of Health, Education, and Welfare” in provision preceding par. (1) pursuant to sections 301(a)(2)(M) and 507 of Pub. L. 96–88, which are classified to sections 3441(a)(2)(M) and 3507 of this title and which transferred functions of Secretary of Health, Education, and Welfare under this chapter to Secretary of Education.
Functions of Federal Security Administrator transferred to Secretary of Health, Education and Welfare and all agencies of Federal Security Agency transferred to Department of Health, Education, and Welfare by section 5 of Reorg. Plan No. 1 of 1953, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631, set out in the Appendix to Title 5, Government Organization and Employees. Federal Security Agency and office of Administrator abolished by section 8 of Reorg. Plan No. 1 of 1953.
Transfer of functions with respect to American Printing House for the Blind to Federal Security Agency, see note set out under section 101 of this title.
Two copies of each of the publication printed by the American Printing House for the Blind shall be furnished free of charge to the National Library for the Blind located at 1729 H Street Northwest, Washington, District of Columbia.
(Nov. 4, 1919, ch. 93, §1, 41 Stat. 332.)
The trustees of said American Printing House for the Blind shall annually make to the Secretary of Education a report of the items of their expenditure of the appropriation aforesaid during the year preceding their report, and shall annually furnish him with a voucher from each public or private nonprofit institution for the education of the blind, showing that the amount of books and tangible apparatus due has been received.
(Mar. 3, 1879, ch. 186, §4, 20 Stat. 469; June 25, 1906, ch. 3536, 34 Stat. 460; 1939 Reorg. Plan No. II, §201(b), eff. July 1, 1939, 4 F.R. 2732, 53 Stat. 1434; 1953 Reorg. Plan No. 1, §5, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Pub. L. 91–230, title VIII, §811(c), Apr. 13, 1970, 84 Stat. 195; Pub. L. 96–88, title III, §301(a)(2)(M), title V, §507, Oct. 17, 1979, 93 Stat. 678, 692.)
The word “appropriation” substituted in text for “income” to conform to the modification of act Mar. 3, 1879, by act June 25, 1906, as shown in the note set out under section 101 of this title.
1970—Pub. L. 91–230 made provision applicable to a private nonprofit institution.
“Secretary of Education” substituted in text for “Secretary of Health, Education, and Welfare” pursuant to sections 301(a)(2)(M) and 507 of Pub. L. 96–88, which are classified to sections 3441(a)(2)(M) and 3507 of this title and which transferred functions of Secretary of Health, Education, and Welfare under this chapter to Secretary of Education.
Functions of Federal Security Administrator transferred to Secretary of Health, Education, and Welfare and all agencies of Federal Security Agency transferred to Department of Health, Education, and Welfare by section 5 of Reorg. Plan No. 1 of 1953, set out in Appendix to Title 5, Government Organization and Employees. Federal Security Agency and office of Administrator abolished by section 8 of Reorg. Plan No. 1 of 1953.
Transfer of functions with respect to American Printing House for the Blind to Federal Security Agency, see note set out under section 101 of this title.
The distribution of embossed books manufactured by the American Printing House for the Blind at Louisville, Kentucky, out of the income of the fund provided by sections 101, 102, and 104 of this title, shall include one copy of every book so manufactured to be deposited in the Library of Congress at Washington.
(Mar. 4, 1913, ch. 142, §1, 37 Stat. 748.)
On and after September 8, 1978, the American Printing House for the Blind is authorized to make purchases through the General Services Administration.
(Pub. L. 95–355, title I, §100, Sept. 8, 1978, 92 Stat. 531.)
Section is from the Second Supplemental Appropriations Act, 1978, and contained additional provisions relating to purchases by Howard University, Gallaudet University, and the National Technical Institute for the Deaf, which are set out in sections 130 and 4362 of this title.
Funds appropriated in this Act or subsequent Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Acts to the American Printing House for the Blind shall be subject to financial and program audit by the Secretary of Education and the Secretary may withhold all or any portion of these appropriations if he determines that an institution has not cooperated fully in the conduct of such audits.
(Pub. L. 102–394, title III, §301, Oct. 6, 1992, 106 Stat. 1819.)
Section is from the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1993, and contained additional provisions relating to Howard University, Gallaudet University, and the National Technical Institute for the Deaf, which are set out as sections 130a and 4363 of this title, respectively.
For the purposes of providing blind persons with remunerative employment, enlarging the economic opportunities of the blind, and stimulating the blind to greater efforts in striving to make themselves self-supporting, blind persons licensed under the provisions of this chapter shall be authorized to operate vending facilities on any Federal property.
In authorizing the operation of vending facilities on Federal property, priority shall be given to blind persons licensed by a State agency as provided in this chapter; and the Secretary, through the Commissioner, shall, after consultation with the Administrator of General Services and other heads of departments, agencies, or instrumentalities of the United States in control of the maintenance, operation, and protection of Federal property, prescribe regulations designed to assure that—
(1) the priority under this subsection is given to such licensed blind persons (including assignment of vending machine income pursuant to section 107d–3 of this title to achieve and protect such priority), and
(2) wherever feasible, one or more vending facilities are established on all Federal property to the extent that any such facility or facilities would not adversely affect the interests of the United States.
Any limitation on the placement or operation of a vending facility based on a finding that such placement or operation would adversely affect the interests of the United States shall be fully justified in writing to the Secretary, who shall determine whether such limitation is justified. A determination made by the Secretary pursuant to this provision shall be binding on any department, agency, or instrumentality of the United States affected by such determination. The Secretary shall publish such determination, along with supporting documentation, in the Federal Register.
(June 20, 1936, ch. 638, §1, 49 Stat. 1559; Aug. 3, 1954, ch. 655, §4(a), 68 Stat. 663; Pub. L. 93–516, title II, §202, Dec. 7, 1974, 88 Stat. 1623; Pub. L. 93–651, title II, §202, Nov. 21, 1974, 89 Stat. 2–8.)
The content of Pub. L. 93–516, including provisions thereof which amended and enacted various sections of this chapter, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974. See 1974 Amendment note below.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this chapter should be deemed to have been amended by Pub. L. 93–651, Nov. 21, 1974, 89 Stat. 2–3, in exactly the same manner as it was amended by Pub. L. 93–516.
1974—Subsec. (a). Pub. L. 93–516 designated first sentence of existing provisions as subsec. (a), substituted “purposes” for “purpose”, “vending facilities” for “vending stands”, and struck out “where such vending stands may be properly and satisfactorily operated by blind persons”. An identical amendment was made by Pub. L. 93–651. See Codification note above.
Subsec. (b). Pub. L. 93–516 designated second sentence of existing provisions as subsec. (b), in the provisions preceding par. (1) of subsec. (b) as so designated, substituted reference to vending facilities for reference to vending stands, substituted provisions requiring that priority be given to blind persons for provisions requiring that preference be given so far as feasible to blind persons, substituted provisions authorizing the Secretary after consultation with the Administrator of General Services, and other heads of departments, agencies, or instrumentalities of the United States in control of maintenance, operation, and protection of Federal property to prescribe regulations for provisions authorizing the head of each department or agency in control of the maintenance, operation, and protection of Federal property after consultation with the Secretary and with the approval of the President to prescribe regulations, struck out provisions that such regulations assure such preference including assignment of vending machine income to achieve and protect such preference for such blind persons without unduly inconveniencing such departments and agencies or adversely affecting the interests of the United States, and added pars. (1) and (2) and provisions following par. (2). An identical amendment was made by Pub. L. 93–651. See Codification note above.
1954—Act Aug. 3, 1954, provided that in authorizing the operation of vending stands preference shall be given, so far as feasible, to blind persons.
Amendment by act Aug. 3, 1954, effective July 1, 1954, see section 8 of act Aug. 3, 1954.
Section 200 of title II of Pub. L. 93–516 provided that: “This title [enacting sections 107b–1 to 107b–3 and 107d–1 to 107d–4 of this title, amending this section, sections 107a, 107b, 107d, 107e of this title, and section 5108 of Title 5, Government Organization and Employees, repealing sections 107c and 107e–1 of this title, and enacting provisions set out as notes under this section and section 702 of Title 29, Labor] may be cited as the ‘Randolph-Sheppard Act Amendments of 1974’.”
An identical provision is in section 200 of Pub. L. 93–651. See Codification note above.
Section 1 of act Aug. 3, 1954, provided that: “This Act [enacting section 107e–1 of this title and amending this section and sections 107a, 107b, 107e, and 107f of this title and sections 31 to 41, 42, 49b, and 49g of Title 29, Labor] may be cited as the ‘Vocational Rehabilitation Amendments of 1954’.”
Act June 20, 1936, ch. 638, §11, as added by Pub. L. 108–136, div. A, title VIII, §852(c), Nov. 24, 2003, 117 Stat. 1556, provided that: “This Act [enacting this chapter] may be cited as the ‘Randolph-Sheppard Act’.”
The act June 20, 1936 is also popularly known as the “Randolph-Sheppard Vending Stand Act”.
Section 201 of Pub. L. 93–516 provided that: “The Congress finds—
“(1) after review of the operation of the blind vending stand program authorized under the Randolph-Sheppard Act of June 20, 1936 [this chapter], that the program has not developed, and has not been sustained, in the manner and spirit in which the Congress intended at the time of its enactment, and that, in fact, the growth of the program has been inhibited by a number of external forces;
“(2) that the potential exists for doubling the number of blind operators on Federal and other property under the Randolph-Sheppard program within the next five years, provided the obstacles to growth are removed, that legislative and administrative means exist to remove such obstacles, and that Congress should adopt legislation to that end; and
“(3) that at a minimum the following actions must be taken to insure the continued vitality and expansion of the Randolph-Sheppard program—
“(A) establish uniformity of treatment of blind vendors by all Federal departments, agencies, and instrumentalities,
“(B) establish guidelines for the operation of the program by State licensing agencies,
“(C) require coordination among the several entities with responsibility for the program,
“(D) establish a priority for vending facilities operated by blind vendors on Federal property,
“(E) establish administrative and judicial procedures under which fair treatment of blind vendors, State licensing agencies, and the Federal Government is assured,
“(F) require stronger administration and oversight functions in the Federal office carrying out the program, and
“(G) accomplish other legislative and administrative objectives which will permit the Randolph-Sheppard program to flourish.”
An identical provision is in section 201 of Pub. L. 93–651. See Codification note above.
The Secretary of Education shall—
(1) Insure that the Rehabilitation Services Administration is the principal agency for carrying out this chapter; and the Commissioner shall, within one hundred and eighty days after enactment of the Randolph-Sheppard Act Amendments of 1974, establish requirements for the uniform application of this chapter by each State agency designated under paragraph (5) of this subsection, including appropriate accounting procedures, policies on the selection and establishment of new vending facilities, distribution of income to blind vendors, and the use and control of set-aside funds under section 107b(3) of this title;
(2) Through the Commissioner, make annual surveys of concession vending opportunities for blind persons on Federal and other property in the United States, particularly with respect to Federal property under the control of the General Services Administration, the Department of Defense, and the United States Postal Service;
(3) Make surveys throughout the United States of industries with a view to obtaining information that will assist blind persons to obtain employment;
(4) Make available to the public, and especially to persons and organizations engaged in work for the blind, information obtained as a result of such surveys;
(5) Designate as provided in section 107b of this title the State agency for the blind in each State, or, in any State in which there is no such agency, some other public agency to issue licenses to blind persons who are citizens of the United States for the operating of vending facilities on Federal and other property in such State for the vending of newspapers, periodicals, confections, tobacco products, foods, beverages, and other articles or services dispensed automatically or manually and prepared on or off the premises in accordance with all applicable health laws, as determined by the State licensing agency, and including the vending or exchange of chances for any lottery authorized by State law and conducted by an agency of a State; and
(6) Through the Commission,1 (A) conduct periodic evaluations of the program authorized by this chapter, including upward mobility and other training required by section 107d–4 of this title, and (B) take such other steps, including the issuance of such rules and regulations, as may be necessary or desirable in carrying out the provisions of this chapter.
The State licensing agency shall, in issuing each such license for the operation of a vending facility, give preference to blind persons who are in need of employment. Each such license shall be issued for an indefinite period but may be terminated by the State licensing agency if it is satisfied that the facility is not being operated in accordance with the rules and regulations prescribed by such licensing agency. Such licenses shall be issued only to applicants who are blind within the meaning of section 107e of this title.
The State licensing agency designated by the Secretary is authorized, with the approval of the head of the department or agency in control of the maintenance, operation, and protection of the Federal property on which the facility is to be located but subject to regulations prescribed pursuant to section 107 of this title, to select a location for such facility and the type of facility to be provided.
(1) After January 1, 1975, no department, agency, or instrumentality of the United States shall undertake to acquire by ownership, rent, lease, or to otherwise occupy, in whole or in part, any building unless, after consultation with the head of such department, agency, or instrumentality and the State licensing agency, it is determined by the Secretary that (A) such building includes a satisfactory site or sites for the location and operation of a vending facility by a blind person, or (B) if a building is to be constructed, substantially altered, or renovated, or in the case of a building that is already occupied on such date by such department, agency, or instrumentality, is to be substantially altered or renovated for use by such department, agency, or instrumentality, the design for such construction, substantial alteration, or renovation includes a satisfactory site or sites for the location and operation of a vending facility by a blind person. Each such department, agency, or instrumentality shall provide notice to the appropriate State licensing agency of its plans for occupation, acquisition, renovation, or relocation of a building adequate to permit such State agency to determine whether such building includes a satisfactory site or sites for a vending facility.
(2) The provisions of paragraph (1) shall not apply (A) when the Secretary and the State licensing agency determine that the number of people using the property is or will be insufficient to support a vending facility, or (B) to any privately owned building, any part of which is leased by any department, agency, or instrumentality of the United States and in which, (i) prior to the execution of such lease, the lessor or any of his tenants had in operation a restaurant or other food facility in a part of the building not included in such lease, and (ii) the operation of such a vending facility by a blind person would be in proximate and substantial direct competition with such restaurant or other food facility except that each such department, agency, and instrumentality shall make every effort to lease property in privately owned buildings capable of accommodating a vending facility.
(3) For the purposes of this subsection, the term “satisfactory site” means an area determined by the Secretary to have sufficient space, electrical and plumbing outlets, and such other facilities as the Secretary may by regulation prescribe, for the location and operation of a vending facility by a blind person.
In any State having an approved plan for vocational rehabilitation pursuant to the Vocational Rehabilitation Act or the Rehabilitation Act of 1973 [29 U.S.C. 701 et seq.], the State licensing agency designated under paragraph (5) of subsection (a) of this section shall be the State agency designated under section 101(a)(2)(A) of such Rehabilitation Act of 1973 [29 U.S.C. 721(a)(2)(A)].
(June 20, 1936, ch. 638, §2, 49 Stat. 1559; 1939 Reorg. Plan No. I, §§201, 204, eff. July 1, 1939, 4 F.R. 2728, 53 Stat. 1424; 1946 Reorg. Plan No. 2, §6, eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Aug. 3, 1954, ch. 655, §4(b)–(d), 68 Stat. 663; Pub. L. 93–516, title II, §203, Dec. 7, 1974, 88 Stat. 1623; Pub. L. 93–651, title II, §203, Nov. 21, 1974, 89 Stat. 2–8; Pub. L. 96–88, title III, §301(a)(4)(B), title V, §507, Oct. 17, 1979, 93 Stat. 678, 692; Pub. L. 104–66, title I, §1041(i), Dec. 21, 1995, 109 Stat. 715; Pub. L. 105–220, title IV, §414(a), Aug. 7, 1998, 112 Stat. 1241.)
For the date of the enactment of the Randolph-Sheppard Act Amendments of 1974, referred to in subsec. (a)(1), see Codification note below.
The Vocational Rehabilitation Act, referred to in subsec. (e), is act June 2, 1920, ch. 219, 41 Stat. 735, as amended, which was classified to chapter 4 (§31 et seq.) of Title 29, Labor, and was repealed by Pub. L. 93–112, title V, §500(a), Sept. 26, 1973, 87 Stat. 357. Such section 500, classified to section 790 of Title 29, provides in part that references to the Vocational Rehabilitation Act in any other provision of law shall be deemed to be references to the Rehabilitation Act of 1973.
The Rehabilitation Act of 1973, referred to in subsec. (e), is Pub. L. 93–112, Sept. 26, 1973, 87 Stat. 355, as amended, which is classified generally to chapter 16 (§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.
The content of Pub. L. 93–516, including provisions of section 203 thereof which amended this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974. See 1974 Amendment note below.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 1422 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been amended by Pub. L. 93–651, title II, §203, Nov. 21, 1974, 89 Stat. 2–8, 2–9, in exactly the same manner as it was amended by Pub. L. 93–516, Dec. 7, 1974, 88 Stat. 1617.
1998—Subsec. (e). Pub. L. 105–220 substituted “section 101(a)(2)(A)” for “section 101(a)(1)(A)”.
1995—Subsec. (a)(6)(A). Pub. L. 104–66 struck out “and annually submit to the appropriate committees of Congress a report based on such evaluations,” after “section 107d–4 of this title,”.
1974—Subsec. (a)(1). Pub. L. 93–516, §203(a)(1), added par. (1). Former par. (1) redesignated (2). An identical amendment was made by Pub. L. 93–651. See Codification note above.
Subsec. (a)(2). Pub. L. 93–516, §203(a)(1), (2), redesignated former par. (1) as (2) and substituted “Through the Commissioner, make annual surveys of concessions vending opportunities for blind persons on Federal and other property in the United States, particularly with respect to Federal property under the control of the General Services Administration, the Department of Defense, and the United States Postal Service” for “Make surveys of concession-stand opportunities for blind persons on Federal and other property in the United States”. Former par. (2) redesignated (3). An identical amendment was made by Pub. L. 93–651. See Codification note above.
Subsec. (a)(3). Pub. L. 93–516, §203(a)(1), redesignated former par. (2) as (3). Former par. (3) redesignated (4). An identical amendment was made by Pub. L. 93–651. See Codification note above.
Subsec. (a)(4). Pub. L. 93–516, §203(a)(1), redesignated former par. (3) as (4). Former par. (4) redesignated (5). An identical amendment was made by Pub. L. 93–651. See Codification note above.
Subsec. (a)(5). Pub. L. 93–516, §203(a)(1), (3), redesignated former par. (4) as (5), substituted “State agency for the blind in each State, or, in any State in which there is no such agency, some other public agency to issue licenses to blind persons who are citizens of the United States for the operating of vending facilities” for “State commission for the blind in each State, or, in any State in which there is no such commission, some other public agency to issue licenses to blind persons who are citizens of the United States and at least twenty-one years of age for the operating of vending stands”, and “foods, beverages, and other articles or services dispensed automatically or manually and prepared on or off the premises in accordance with all applicable health laws, as determined by the State licensing agency, and including the vending or exchange of chances for any lottery authorized by State law and conducted by an agency of a State” for “articles dispensed automatically or in containers or wrapping in which they are placed before receipt by the vending stand, and such other articles as may be approved for each property by the department or agency in control of the maintenance, operation, and protection thereof and the State licensing agency in accordance with the regulations prescribed pursuant to section 107 of this title”, and struck out proviso that effective four years after the enactment of the Vocational Rehabilitation Amendments of 1954, in States having an approved plan for vocational rehabilitation pursuant to the Vocational Rehabilitation Act, the licensing agency to be designated hereunder shall be the State agency designated pursuant to section 35(a)(1) of title 29 as the sole agency with respect to vocational rehabilitation of the blind, and that prior to such time, no license shall be granted except upon certification by a vocational rehabilitation agency that the individual is qualified to operate a vending stand. An identical amendment was made by Pub. L. 93–651. See Codification note above.
Subsec. (a)(6). Pub. L. 93–516, §203(a)(1), (4), redesignated former par. (5) as (6), substantially reenacted existing provisions in cl. (B), and added cl. (A) and provisions preceding cl. (A). An identical amendment was made by Pub. L. 93–651. See Codification note above.
Subsec. (b). Pub. L. 93–516, §203(b), substituted “operation of a vending facility” for “operation of a vending stand”, struck out one year residency requirement for giving preference, and in provisions relating to qualifications of applicants, struck out “but are able, in spite of such infirmity, to operate such stands”. An identical amendment was made by Pub. L. 93–651. See Codification note above.
Subsec. (c). Pub. L. 93–516, §203(c), substituted “facility” for “stand” in three places. An identical amendment was made by Pub. L. 93–651. See Codification note above.
Subsecs. (d), (e). Pub. L. 93–516, §203(d), added subsecs. (d) and (e). An identical amendment was made by Pub. L. 93–651. See Codification note above.
1954—Act Aug. 3, 1954, added to the list of articles which may be vended, articles dispensed automatically or in containers or wrappings received by the stand and to provide that after four years the agency designated under section 35(a)(1) of title 29 shall be the sole State agency for vocational rehabilitation of the blind and to require, prior to that time, certification by agencies as a condition for issuing licenses.
Amendment by act Aug. 3, 1954, effective July 1, 1954, see section 8 of act Aug. 3, 1954.
“Secretary of Education” substituted for “Secretary of Health, Education, and Welfare” in subsec. (a) pursuant to sections 301(a)(4)(B) and 507 of Pub. L. 96–88 which are classified to sections 3441(a)(4)(B) and 3507 of this title and which transferred functions of Secretary of Health, Education, and Welfare under this chapter to Secretary of Education.
For transfer of functions and offices of Secretary and Department of Health, Education, and Welfare, including Rehabilitation Services Administration and Commissioner thereof, to Secretary and Department of Education, and for delegation of certain functions of Secretary of Education under this chapter to Assistant Secretary for Special Education and Rehabilitative Services, see sections 3417 and 3441 of this title.
Functions of Federal Security Administrator transferred to Secretary of Health, Education, and Welfare and all agencies of Federal Security Agency transferred to Department of Health, Education, and Welfare by section 5 of Reorg. Plan No. 1 of 1953, set out in the Appendix to Title 5, Government Organization and Employees. Federal Security Agency and office of Administrator abolished by section 8 of Reorg. Plan No. 1 of 1953.
“Federal Security Administrator” substituted for “Office of Education under the Federal Security Agency, subject to the direction of the Commissioner of Education and such rules and regulations as he may, with the approval of the Federal Security Administrator, prescribe” in subsec. (a) and for “Office of Education” in subsec. (c) by Reorg. Plan No. 2 of 1946, set out in the Appendix to Title 5, which transferred functions of Office of Education and Commissioner of Education under sections 107 to 107f of this title to Federal Security Administrator. Federal Security Agency Order 62, July 16, 1946, 11 F.R. 7943, provided that these functions shall be performed under supervision and direction of Commissioner for Special Services by Director of Vocational Rehabilitation and such officers and employees of Office of Vocational Rehabilitation as Director shall designate.
Office of Education originally established in Department of the Interior from which it was transferred to Federal Security Agency by Reorg. Plan No. I of 1939, §201, which is set out in the Appendix to Title 5.
1 So in original. Probably should be “Commissioner,”.
A State agency for the blind or other State agency desiring to be designated as the licensing agency shall, with the approval of the chief executive of the State, make application to the Secretary and agree—
(1) to cooperate with the Secretary in carrying out the purpose of this chapter;
(2) to provide for each licensed blind person such vending facility equipment, and adequate initial stock of suitable articles to be vended therefrom, as may be necessary: Provided, however, That such equipment and stock may be owned by the licensing agency for use of the blind, or by the blind individual to whom the license is issued: And provided further, That if ownership of such equipment is vested in the blind licensee, (A) the State licensing agency shall retain a first option to repurchase such equipment and (B) in the event such individual dies or for any other reason ceases to be a licensee or transfers to another vending facility, ownership of such equipment shall become vested in the State licensing agency (for transfer to a successor licensee) subject to an obligation on the part of the State licensing agency to pay to such individual (or to his estate) the fair value of his interest therein as later determined in accordance with regulations of the State licensing agency and after opportunity for a fair hearing;
(3) that if any funds are set aside, or caused to be set aside, from the net proceeds of the operation of the vending facilities such funds shall be set aside, or caused to be set aside, only to the extent necessary for and may be used only for the purposes of (A) maintenance and replacement of equipment; (B) the purchase of new equipment; (C) management services; (D) assuring a fair minimum return to operators of vending facilities; and (E) retirement or pension funds, health insurance contributions, and provision for paid sick leave and vacation time, if it is determined by a majority vote of blind licensees licensed by such State agency, after such agency provides to each such licensee full information on all matters relevant to such proposed program, that funds under this paragraph shall be set aside for such purposes: Provided, however, That in no event shall the amount of such funds to be set aside from the net proceeds of any vending facility exceed a reasonable amount which shall be determined by the Secretary;
(4) to make such reports in such form and containing such information as the Secretary may from time to time require and to comply with such provisions as he may from time to time find necessary to assure the correctness and verification of such reports;
(5) to issue such regulations, consistent with the provisions of this chapter, as may be necessary for the operation of this program;
(6) to provide to any blind licensee dissatisfied with any action arising from the operation or administration of the vending facility program an opportunity for a fair hearing, and to agree to submit the grievances of any blind licensee not otherwise resolved by such hearing to arbitration as provided in section 107d–1 of this title.
(June 20, 1936, ch. 638, §3, 49 Stat. 1560; 1946 Reorg. Plan No. 2, §6, eff. July 16, 1946, 11 F.R 7873, 60 Stat. 1095; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Aug. 3, 1954, ch. 655, §4(e), 68 Stat. 664; Pub. L. 93–516, title II, §204, Dec. 7, 1974, 88 Stat. 1625; Pub. L. 93–651, title II, §204, Nov. 21, 1974, 89 Stat. 2–10.)
The content of Pub. L. 93–516, including provisions of section 204 thereof which amended this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974. See 1974 Amendment note below.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been amended by Pub. L. 93–651, title II, §204, Nov. 21, 1974, 89 Stat. 2–10, in exactly the same manner as it was amended by Pub. L. 93–516.
1974—Pub. L. 93–516, §204(a)(1), substituted “A State agency” for “A State commission” in provisions preceding par. (1). An identical amendment was made by Pub. L. 93–651. See Codification note above.
Par. (2). Pub. L. 93–516, §204(a)(2), substituted “vending facility” for “vending stand” in two places. An identical amendment was made by Pub. L. 93–651. See Codification note above.
Par. (3). Pub. L. 93–516, §204(a)(2), (b), (c), in provisions preceding subpar. (A), substituted “the net proceeds of the operation of the vending facilities” for “the proceeds of the operation of the vending stands”, in subpar. (D), substituted “vending facilities” for “vending stands”, added subpar. (E), and in proviso following subpar. (E) substituted “the net proceeds of any vending facility” for “the proceeds of any vending stand”. An identical amendment was made by Pub. L. 93–651. See Codification note above.
Par. (6). Pub. L. 93–516, §204(a)(3), substituted “vending facility program an opportunity for a fair hearing, and to agree to submit the grievances of any blind licensee not otherwise resolved by such hearing to arbitration as provided in section 107d–1 of this title” for “vending stand program an opportunity for a fair hearing”. An identical amendment was made by Pub. L. 93–651. See Codification note above.
1954—Act Aug. 3, 1954, amended section generally and, among other changes, added pars. (3) to (6).
Amendment by act Aug. 3, 1954, effective July 1, 1954, see section 8 of act Aug. 3, 1954.
For transfer of functions, see note set out under section 107a of this title.
In addition to other requirements imposed in this title and in this chapter upon State licensing agencies, such agencies shall—
(1) provide to each blind licensee access to all relevant financial data, including quarterly and annual financial reports, on the operation of the State vending facility program;
(2) conduct the biennial election of a Committee of Blind Vendors who shall be fully representative of all blind licensees in the State program,1 and
(3) insure that such committee's responsibilities include (A) participation, with the State agency, in major administrative decisions and policy and program development, (B) receiving grievances of blind licensees and serving as advocates for such licensees, (C) participation, with the State agency, in the development and administration of a transfer and promotion system for blind licensees, (D) participation, with the State agency, in developing training and retraining programs, and (E) sponsorship, with the assistance of the State agency, of meetings and instructional conferences for blind licensees.
(Pub. L. 93–516, title II, §209, Dec. 7, 1974, 88 Stat. 1630; Pub. L. 93–651, title II, §209, Nov. 21, 1974, 89 Stat. 2–15.)
This title, referred to in text, is title II of Pub. L. 93–516, Dec. 7, 1974, 88 Stat. 1617, as amended, known as the “Randolph-Sheppard Act Amendments of 1974”. For complete classification of such title to the Code, see Short Title of 1974 Amendment note set out under section 107 of this title and Tables.
Section was enacted as part of the Randolph-Sheppard Act Amendments of 1974, and not as part of the Randolph-Sheppard Vending Stand Act which comprises this chapter.
The content of Pub. L. 93–516, including provisions of section 209 thereof which enacted this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been enacted by Pub. L. 93–651, title II, §209, Nov. 21, 1974, 89 Stat. 2–15, in exactly the same manner as it was enacted by Pub. L. 93–516.
1 So in original. The comma probably should be a semicolon.
Section, Pub. L. 93–516, title II, §210, Dec. 7, 1974, 88 Stat. 1630, required the Secretary to promulgate national standards for funds set aside, to study and report the feasibility of establishing retirement, pension, and health insurance systems for blind licensees, and to evaluate the income assignment methods and required the State agencies to submit certain reports.
The content of Pub. L. 93–516, including provisions of section 210 thereof which enacted this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been enacted by Pub. L. 93–651, title II, §210, Nov. 21, 1974, 89 Stat. 2–15, in exactly the same manner as it was enacted by Pub. L. 93–516.
The Comptroller General is authorized to conduct regular and periodic audits of all nonappropriated fund activities which receive income from vending machines on Federal property, under such rules and regulations as he may prescribe. In the conduct of such audits he and his duly authorized representatives shall have access to any relevant books, documents, papers, accounts, and records of such activities as he deems necessary.
(Pub. L. 93–516, title II, §211, Dec. 7, 1974, 88 Stat. 1630; Pub. L. 93–651, title II, §211, Nov. 21, 1974, 89 Stat. 2–15.)
Section was enacted as part of the Randolph-Sheppard Act Amendments of 1974, and not as part of the Randolph-Sheppard Vending Stand Act which comprises this chapter.
The content of Pub. L. 93–516, including provisions of section 211 thereof which enacted this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been enacted by Pub. L. 93–651, title II, §211, Nov. 21, 1974, 89 Stat. 2–15, in exactly the same manner as it was enacted by Pub. L. 93–516.
Section, act June 20, 1936, ch. 638, §4, 49 Stat. 1560; Reorg. Plan No. 2 of 1946, §6, eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095; Reorg. Plan No. 1 of 1953, §§5, 8 eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631, related to provisions authorizing the Secretary to cooperate with State boards for rehabilitation of handicapped persons, established by the several States pursuant to sections 31 to 42b of Title 29, Labor, as amended and supplemented, in carrying out the provisions of this chapter. See section 701 et seq. of Title 29.
The content of Pub. L. 93–516, including provisions of section 205 thereof which repealed this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been repealed by Pub. L. 93–651, title II, §205, Nov. 21, 1974, 89 Stat. 2–11, in exactly the same manner as it was repealed by Pub. L. 93–516.
The Secretary is authorized to make such expenditures out of any money appropriated therefor (including expenditures for personal services and rent at the seat of government and elsewhere, books of reference and periodicals, for printing and binding, and for traveling expenses) as he may deem necessary to carry out the provisions of this chapter.
The Secretary shall, in employing such additional personnel as may be necessary, give preference to blind persons who are capable of discharging the required duties.
(June 20, 1936, ch. 638, §4, formerly §5, 49 Stat. 1560; 1946 Reorg. Plan No. 2, §6, eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; renumbered §4 and amended Pub. L. 93–516, title II, §§206, 208(d), Dec. 7, 1974, 88 Stat. 1626, 1629; Pub. L. 93–651, title II, §§206, 208(d), Nov. 21, 1974, 89 Stat. 2–11, 2–14.)
The content of Pub. L. 93–516, including provisions of sections 206 and 208(d) thereof which amended and renumbered this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974. See 1974 Amendment note below.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been amended and renumbered by Pub. L. 93–651, title II, §§206, 208(d), Nov. 21, 1974, 89 Stat. 2–11, 2–14, in exactly the same manner as it was amended and renumbered by Pub. L. 93–516.
1974—Subsec. (b). Pub. L. 93–516, §208(d), struck out requirement that at least 50 percent of the additional personnel be blind persons. An identical amendment was made by Pub. L. 93–651. See Codification note above.
For transfer of functions, see note set out under section 107a of this title.
Any blind licensee who is dissatisfied with any action arising from the operation or administration of the vending facility program may submit to a State licensing agency a request for a full evidentiary hearing, which shall be provided by such agency in accordance with section 107b(6) of this title. If such blind licensee is dissatisfied with any action taken or decision rendered as a result of such hearing, he may file a complaint with the Secretary who shall convene a panel to arbitrate the dispute pursuant to section 107d–2 of this title, and the decision of such panel shall be final and binding on the parties except as otherwise provided in this chapter.
Whenever any State licensing agency determines that any department, agency, or instrumentality of the United States that has control of the maintenance, operation, and protection of Federal property is failing to comply with the provisions of this chapter or any regulations issued thereunder (including a limitation on the placement or operation of a vending facility as described in section 107(b) of this title and the Secretary's determination thereon) such licensing agency may file a complaint with the Secretary who shall convene a panel to arbitrate the dispute pursuant to section 107d–2 of this title, and the decision of such panel shall be final and binding on the parties except as otherwise provided in this chapter.
(June 20, 1936, ch. 638, §5, as added Pub. L. 93–516, title II, §206, Dec. 7, 1974, 88 Stat. 1626; Pub. L. 93–651, title II, §206, Nov. 21, 1974, 89 Stat. 2–11.)
The content of Pub. L. 93–516, including provisions of section 206 thereof which enacted this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been enacted by Pub. L. 93–651, title II, §206, Nov. 21, 1974, 89 Stat. 2–11, in exactly the same manner as it was enacted by Pub. L. 93–516.
A prior section 5 of act of June 20, 1936, which was classified to section 107d of this title, was renumbered section 4 by Pub. L. 93–516, §206.
Upon receipt of a complaint filed under section 107d–1 of this title, the Secretary shall convene an ad hoc arbitration panel as provided in subsection (b) of this section. Such panel shall, in accordance with the provisions of subchapter II of chapter 5 of title 5, give notice, conduct a hearing, and render its decision which shall be subject to appeal and review as a final agency action for purposes of chapter 7 of such title 5.
(1) The arbitration panel convened by the Secretary to hear grievances of blind licensees shall be composed of three members appointed as follows:
(A) one individual designated by the State licensing agency;
(B) one individual designated by the blind licensee; and
(C) one individual, not employed by the State licensing agency or, where appropriate, its parent agency, who shall serve as chairman, jointly designated by the members appointed under subparagraphs (A) and (B).
If any party fails to designate a member under subparagraph (1)(A), (B), or (C), the Secretary shall designate such member on behalf of such party.
(2) The arbitration panel convened by the Secretary to hear complaints filed by a State licensing agency shall be composed of three members appointed as follows:
(A) one individual, designated by the State licensing agency;
(B) one individual, designated by the head of the Federal department, agency, or instrumentality controlling the Federal property over which the dispute arose; and
(C) one individual, not employed by the Federal department, agency, or instrumentality controlling the Federal property over which the dispute arose, who shall serve as chairman, jointly designated by the members appointed under subparagraphs (A) and (B).
If any party fails to designate a member under subparagraph (2)(A), (B), or (C), the Secretary shall designate such member on behalf of such party. If the panel appointed pursuant to paragraph (2) finds that the acts or practices of any such department, agency, or instrumentality are in violation of this chapter, or any regulation issued thereunder, the head of any such department, agency, or instrumentality shall cause such acts or practices to be terminated promptly and shall take such other action as may be necessary to carry out the decision of the panel.
The decisions of a panel convened by the Secretary pursuant to this section shall be matters of public record and shall be published in the Federal Register.
The Secretary shall pay all reasonable costs of arbitration under this section in accordance with a schedule of fees and expenses he shall publish in the Federal Register.
(June 20, 1936, ch. 638, §6, as added Pub. L. 93–516, title II, §206, Dec. 7, 1974, 88 Stat. 1626; Pub. L. 93–651, title II, §206, Nov. 21, 1974, 89 Stat. 2–11.)
The content of Pub. L. 93–516, including provisions of section 206 thereof which enacted this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been enacted by Pub. L. 93–651, title II, §206, Nov. 21, 1974, 89 Stat. 2–11, in exactly the same manner as it was enacted by Pub. L. 93–516.
A prior section 6 of act June 20, 1936, which was classified to section 107e of this title, was renumbered section 9 by Pub. L. 93–516, §206.
In accordance with the provisions of subsection (b) of this section, vending machine income obtained from the operation of vending machines on Federal property shall accrue (1) to the blind licensee operating a vending facility on such property, or (2) in the event there is no blind licensee operating such facility on such property, to the State agency in whose State the Federal property is located, for the uses designated in subsection (c) of this section, except that with respect to income which accrues under clause (1) of this subsection, the Commissioner may prescribe regulations imposing a ceiling on income from such vending machines for an individual blind licensee. In the event such a ceiling is imposed, no blind licensee shall receive less vending machine income under such ceiling than he was receiving on January 1, 1974. No limitation shall be imposed on income from vending machines, combined to create a vending facility, which are maintained, serviced, or operated by a blind licensee. Any amounts received by a blind licensee that are in excess of the amount permitted to accrue to him under any ceiling imposed by the Commissioner shall be disbursed to the appropriate State agency under clause (2) of this subsection and shall be used by such agency in accordance with subsection (c) of this section.
(1) After January 1, 1975, 100 per centum of all vending machine income from vending machines on Federal property which are in direct competition with a blind vending facility shall accrue as specified in subsection (a) of this section. “Direct competition” as used in this section means the existence of any vending machines or facilities operated on the same premises as a blind vending facility except that vending machines or facilities operated in areas serving employees the majority of whom normally do not have direct access to the blind vending facility shall not be considered in direct competition with the blind vending facility. After January 1, 1975, 50 per centum of all vending machine income from vending machines on Federal property which are not in direct competition with a blind vending facility shall accrue as specified in subsection (a) of this section, except that with respect to Federal property at which at least 50 per centum of the total hours worked on the premises occurs during periods other than normal working hours, 30 per centum of such income shall so accrue.
(2) The head of each department, agency, and instrumentality of the United States shall insure compliance with this section with respect to buildings, installations, and facilities under his control, and shall be responsible for collection of, and accounting for, such vending machine income.
All vending machine income which accrues to a State licensing agency pursuant to subsection (a) of this section shall be used to establish retirement or pension plans, for health insurance contributions, and for provision of paid sick leave and vacation time for blind licensees in such State, subject to a vote of blind licensees as provided under section 107b(3)(E) of this title. Any vending machine income remaining after application of the first sentence of this subsection shall be used for the purposes specified in sections 107b(3)(A), (B), (C), and (D) of this title, and any assessment charged to blind licensees by a State licensing agency shall be reduced pro rata in an amount equal to the total of such remaining vending machine income.
Subsections (a) and (b)(1) of this section shall not apply to income from vending machines within retail sales outlets under the control of exchange or ships’ stores systems authorized by title 10, or to income from vending machines operated by the Veterans Canteen Service, or to income from vending machines not in direct competition with a blind vending facility at individual locations, installations, or facilities on Federal property the total of which at such individual locations, installations, or facilities does not exceed $3,000 annually.
The Secretary, through the Commissioner, shall prescribe regulations to establish a priority for the operation of cafeterias on Federal property by blind licensees when he determines, on an individual basis and after consultation with the head of the appropriate installation, that such operation can be provided at a reasonable cost with food of a high quality comparable to that currently provided to employees, whether by contract or otherwise.
This section shall not operate to preclude preexisting or future arrangements, or regulations of departments, agencies, or instrumentalities of the United States, under which blind licensees (1) receive a greater percentage or amount of vending machine income than that specified in subsection (b)(1) of this section, or (2) receive vending machine income from individual locations, installations, or facilities on Federal property the total of which at such individual locations, installations, or facilities does not exceed $3,000 annually.
The Secretary shall take such action and promulgate such regulations as he deems necessary to assure compliance with this section.
(June 20, 1936, ch. 638, §7, as added Pub. L. 93–516, title II, §206, Dec. 7, 1974, 88 Stat. 1627; Pub. L. 93–651, title II, §206, Nov. 21, 1974, 89 Stat. 2–12.)
The content of Pub. L. 93–516, including provisions of section 206 thereof which enacted this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been enacted by Pub. L. 93–651, title II, §206, Nov. 21, 1974, 89 Stat. 2–12, in exactly the same manner as it was enacted by Pub. L. 93–516.
A prior section 7 of act June 20, 1936, was classified to section 107e–1 of this title, prior to repeal by Pub. L. 93–516, §205.
The Commissioner shall insure, through promulgation of appropriate regulations, that uniform and effective training programs, including on-the-job training, are provided for blind individuals, through services under the Rehabilitation Act of 1973 [29 U.S.C. 701 et seq.]. He shall further insure that State agencies provide programs for upward mobility (including further education and additional training or retraining for improved work opportunities) for all trainees under this chapter, and that follow-along services are provided to such trainees to assure that their maximum vocational potential is achieved.
(June 20, 1936, ch. 638, §8, as added Pub. L. 93–516, title II, §206, Dec. 7, 1974, 88 Stat. 1628; Pub. L. 93–651, title II, §206, Nov. 21, 1974, 89 Stat. 2–13.)
The Rehabilitation Act of 1973, referred to in text, is Pub. L. 93–112, Sept. 26, 1973, 87 Stat. 355, as amended, which is classified generally to chapter 16 (§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.
The content of Pub. L. 93–516, including provisions of section 206 thereof which enacted this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been enacted by Pub. L. 93–651, title II, §206, Nov. 21, 1974, 89 Stat. 2–13, in exactly the same manner as it was enacted by Pub. L. 93–516.
A prior section 8 of act June 20, 1936, which was classified to section 107f of this title, was renumbered section 10 by Pub. L. 93–516, §206.
As used in this chapter—
(1) “blind person” means a person whose central visual acuity does not exceed 20/200 in the better eye with correcting lenses or whose visual acuity, if better than 20/200, is accompanied by a limit to the field of vision in the better eye to such a degree that its widest diameter subtends an angle of no greater than twenty degrees. In determining whether an individual is blind, there shall be an examination by a physician skilled in diseases of the eye, or by an optometrist, whichever the individual shall select;
(2) “Commissioner” means the Commissioner of the Rehabilitation Services Administration;
(3) “Federal property” means any building, land, or other real property owned, leased, or occupied by any department, agency, or instrumentality of the United States (including the Department of Defense and the United States Postal Service), or any other instrumentality wholly owned by the United States, or by any department or agency of the District of Columbia or any territory or possession of the United States;
(4) “Secretary” means the Secretary of Education;
(5) “State” means a State, territory, possession, Puerto Rico, or the District of Columbia;
(6) “United States” includes the several States, territories, and possessions of the United States, Puerto Rico, and the District of Columbia;
(7) “vending facility” means automatic vending machines, cafeterias, snack bars, cart services, shelters, counters, and such other appropriate auxiliary equipment as the Secretary may by regulation prescribe as being necessary for the sale of the articles or services described in section 107a(a)(5) of this title and which may be operated by blind licensees; and
(8) “vending machine income” means receipts (other than those of a blind licensee) from vending machine operations on Federal property, after cost of goods sold (including reasonable service and maintenance costs), where the machines are operated, serviced, or maintained by, or with the approval of, a department, agency, or instrumentality of the United States, or commissions paid (other than to a blind licensee) by a commercial vending concern which operates, services, and maintains vending machines on Federal property for, or with the approval of, a department, agency, or instrumentality of the United States.
(June 20, 1936, ch. 638, §9, formerly §6, 49 Stat. 1560; Aug. 3, 1954, ch. 655, §4(f), 68 Stat. 664; renumbered §9 and amended Pub. L. 93–516, title II, §§206, 207, Dec. 7, 1974, 88 Stat. 1626, 1628; Pub. L. 93–651, title II, §§206, 207, Nov. 21, 1974, 89 Stat. 2–11, 2–13; Pub. L. 96–88, title III, §301(a)(4)(B), title V, §507, Oct. 17, 1979, 93 Stat. 678, 692.)
The content of Pub. L. 93–516, including provisions of sections 206 and 207 thereof which amended and renumbered this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974. See 1974 Amendment note below.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been amended and renumbered by Pub. L. 93–651, title II, §§206, 207, Nov. 21, 1974, 89 Stat. 2–11, 2–13, in exactly the same manner as it was amended and renumbered by Pub. L. 93–516.
1974—Pub. L. 93–516, §207, replaced letter designations with number designations, inserted definitions of “Commissioner”, “vending facility”, and “vending machine income”, and in definition of “blind person” substituted provisions that such person meant a person whose central visual acuity does not exceed 20/200 in the better eye with correcting lenses or whose visual acuity, if better than 20/200, is accompanied by a limit to the field of vision in the better eye to such a degree that its widest diameter subtends an angle of no greater than twenty degrees, and that in determining whether a person is blind, there shall be an examination by a physician skilled in diseases of the eye, or by an optometrist, whichever the individual shall select, for provisions that such person meant a person having not more than 10 per centum visual acuity in the better eye with correction and that such blindness shall be certified by a duly licensed ophthalmologist, in definition of “United States” inserted reference to Puerto Rico, in definition of “State” inserted reference to Puerto Rico, and in definition of “Federal property” inserted reference to Department of Defense and United States Postal Service. An identical amendment was made by Pub. L. 93–651. See Codification note above.
1954—Subsecs. (d), (e). Act Aug. 3, 1954, added subsecs. (d) and (e).
Amendment by act Aug. 3, 1954, effective July 1, 1954, see section 8 of act Aug. 3, 1954.
“Secretary of Education” substituted for “Secretary of Health, Education, and Welfare” in par. (4) pursuant to sections 301(a)(4)(B) and 507 of Pub. L. 96–88 which are classified to sections 3441(a)(4)(B) and 3507 of this title and which transferred all functions of Secretary of Health, Education, and Welfare under this chapter to Secretary of Education.
For transfer of functions and offices of Secretary and Department of Health, Education, and Welfare, including Rehabilitation Services Administration and Commissioner thereof, to Secretary and Department of Education, and for delegation of certain functions of Secretary of Education under this chapter to Assistant Secretary for Special Education and Rehabilitative Services, see sections 3417 and 3441 of this title.
Section, act June 20, 1936, ch. 638, §7, as added Aug. 3, 1954, ch. 655, §4(g), 68 Stat. 664, related to designation and status of states acting as licensing agents before July 1, 1954.
The content of Pub. L. 93–516, including provisions of section 205 thereof which repealed this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been repealed by Pub. L. 93–651, title II, §205, Nov. 21, 1974, 89 Stat. 2–11, in exactly the same manner as it was repealed by Pub. L. 93–516.
There is authorized to be appropriated such sums as may be necessary for carrying out the provisions of this chapter.
(June 20, 1936, ch. 638, §10, formerly §7, 49 Stat. 1560; renumbered §8, Aug. 3, 1954, ch. 655, §4(g), 68 Stat. 664; renumbered §10, Pub. L. 93–516, title II, §206, Dec. 7, 1974, 88 Stat. 1626; Pub. L. 93–651, title II, §206, Nov. 21, 1974, 89 Stat. 2–11.)
The content of Pub. L. 93–516, including provisions of section 206 thereof which renumbered this section, were originally contained in H.R. 14225, 93rd Congress, Second Session, which was pocket-vetoed during the 31-day intrasession adjournment of the 93rd Congress for the Congressional elections in November, 1974.
Pursuant to an order of the United States District Court for the District of Columbia (Kennedy v. Jones, D.C.D.C. 1976, 412 F.Supp. 353) H.R. 14225 was deemed to have become law without the approval of the President on Nov. 21, 1974, and was given the designation Pub. L. 93–651. Therefore, for purposes of codification, this section should be deemed to have been renumbered by Pub. L. 93–651, title II, §206, Nov. 21, 1974, 89 Stat. 2–11, in exactly the same manner as it was amended by Pub. L. 93–516, title II, §206, Nov. 21, 1974, 88 Stat. 1626.
The nature of alcoholic drinks and narcotics, and special instruction as to their effects upon the human system, in connection with the several divisions of the subject of physiology and hygiene, shall be included in the branches of study taught in the common or public schools, and in the military and naval schools, and shall be studied and taught as thoroughly and in the same manner as other like required branches are in said schools, by the use of textbooks in the hands of pupils where other branches are thus studied in said schools, and by all pupils in all said schools throughout the Territories, in the Military and Naval Academies of the United States, and in the District of Columbia, and in all Indian and colored schools in the Territories of the United States.
(May 20, 1886, ch. 362, §1, 24 Stat. 69.)
It shall be the duty of the proper officers in control of any school described in section 111 of this title to enforce the provisions of this chapter; and any such officer, school director, committee, superintendent, or teacher who shall refuse or neglect to comply with the requirements of this chapter, or shall neglect or fail to make proper provisions for the instruction required and in the manner specified by section 111 of this title, for all pupils in each and every school under his jurisdiction, shall be removed from office, and the vacancy filled as in other cases.
(May 20, 1886, ch. 362, §2, 24 Stat. 69.)
No certificate shall be granted to any person to teach in the public schools of the District of Columbia or Territories who has not passed a satisfactory examination in physiology and hygiene, with special reference to the nature and the effects of alcoholic drinks and other narcotics upon the human system.
(May 20, 1886, ch. 362, §3, 24 Stat. 69.)
The president and directors of Howard University shall report to the Secretary of Education the condition of the institution on the 1st of July of each year, embracing therein the number of pupils received and discharged or leaving the same for any cause during the preceding year, and the number remaining; also, the branches of knowledge and industry taught and the progress made therein together with a statement showing the receipts of the institution and from what sources, and its disbursements, and for what objects.
(July 1, 1898, ch. 546, §1, 30 Stat. 624; 1940 Reorg. Plan No. IV, §11(c), eff. June 30, 1940, 5 F.R. 2422, 54 Stat. 1237; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Pub. L. 96–88, title III, §301(a)(2)(M), title V, §507, Oct. 17, 1979, 93 Stat. 678, 692.)
“Secretary of Education” substituted in text for “Secretary of Health, Education, and Welfare” pursuant to sections 301(a)(2)(M) and 507 of Pub. L. 96–88, which are classified to sections 3441(a)(2)(M) and 3507 of this title and which transferred all functions of Secretary of Health, Education, and Welfare under this subchapter to Secretary of Education.
Functions of Federal Security Administrator transferred to Secretary of Health, Education, and Welfare and all agencies of Federal Security Agency transferred to Department of Health, Education, and Welfare by section 5 of Reorg. Plan No. 1 of 1953, set out in the Appendix to Title 5, Government Organization and Employees. Federal Security Agency and office of Administrator abolished by section 8 of Reorg. Plan No. 1 of 1953.
Functions of Department of the Interior relating to administration of Howard University transferred to Federal Security Agency to be administered under direction and supervision of Federal Security Administrator, and annual report required to be furnished to Secretary of the Interior by President and directors of said University was directed to be furnished to Federal Security Administrator, by Reorg. Plan No. IV of 1940, set out in the Appendix to Title 5.
A similar requirement of a report of the expenditures of the University accompanied the appropriation for the same purposes in the following prior acts:
Mar. 3, 1893, ch. 208, 27 Stat. 595.
Aug. 5, 1892, ch. 380, 27 Stat. 372.
Mar. 3, 1891, ch. 542, 26 Stat. 973.
No part of the appropriations made by Congress for the Howard University shall be used, directly or indirectly, for the support of the theological department of said university, nor for the support of any sectarian, denominational, or religious instruction therein; and no part thereof shall be paid to said university until it shall accord to the Secretary of Education, or to his designated agent or agents, authority to visit and inspect such university and to control and supervise the expenditure therein of all moneys paid under said appropriations.
(Mar. 3, 1899, ch. 424, 30 Stat. 1101; 1940 Reorg. Plan No. IV, §11(c), eff. June 30, 1940, 5 F.R. 2422, 54 Stat. 1237; 1953 Reorg. Plan No. 1, §§5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; Pub. L. 96–88, title III, §301(a)(2)(M), title V, §507, Oct. 17, 1979, 93 Stat. 678, 692.)
“Secretary of Education” substituted in text for “Secretary of Health, Education, and Welfare” pursuant to sections 301(a)(2)(M) and 507 of Pub. L. 96–88, which are classified to sections 3441(a)(2)(M) and 3507 of this title and which transferred all functions of Secretary of Health, Education, and Welfare under this subchapter to Secretary of Education.
Functions of Federal Security Administrator transferred to Secretary of Health, Education, and Welfare and all agencies of Federal Security Agency transferred to Department of Health, Education, and Welfare by section 5 of Reorg. Plan No. 1 of 1953, set out in the Appendix to Title 5, Government Organization and Employees. Federal Security Agency and office of Administrator abolished by section 8 of Reorg. Plan No. 1 of 1953.
Functions of Department of the Interior relating to administration of Howard University transferred to Federal Security Agency to be administered under direction and supervision of Federal Security Administrator by Reorg. Plan No. IV of 1940, set out as a note in the Appendix to Title 5.
Similar prior provisions were contained in act July 1, 1898, ch. 546, 30 Stat. 624.
Annual appropriations are authorized to aid in the construction, development, improvement, endowment, and maintenance of the university, no part of which shall be used for religious instruction. The university shall at all times be open to inspection by the Secretary of Education and shall be inspected by the said Secretary at least once each year.
(Mar. 2, 1867, ch. 162, §8, 14 Stat. 439; Dec. 13, 1928, ch. 26, 45 Stat. 1021; 1940 Reorg. Plan No. IV, §11(c), eff. June 30, 1940, 5 F.R. 2422, 54 Stat. 1237; Aug. 7, 1946, ch. 770, §1(60), 60 Stat. 871; Pub. L. 96–88, title III, §301(a)(2)(M), title V, §507, Oct. 17, 1979, 93 Stat. 678, 692; Pub. L. 98–480, title II, §208, Oct. 17, 1984, 98 Stat. 2247.)
1984—Pub. L. 98–480 inserted “endowment,” after “improvement,”.
1946—Act Aug. 7, 1946, repealed third sentence which required that an annual report of the affairs of the university be presented to Congress in the report of Office of Education.
1928—Act Dec. 13, 1928, authorized annual appropriations for the university, prohibited use of funds for religious instruction, made the university subject to inspection at least once a year by the Bureau of Education, and substituted provision that the annual report of the university's affairs be presented to Congress by the Bureau for provision that the Board of Trustees publish such an annual report.
Amendment by Pub. L. 98–480 effective Oct. 1, 1984, see section 209 of Pub. L. 98–480, set out as an Effective Date note under section 130aa of this title.
“Secretary of Education” substituted in text for “Secretary of Health, Education, and Welfare” pursuant to sections 301(a)(2)(M) and 507 of Pub. L. 96–88 which are classified to sections 3441(a)(2)(M) and 3507 of this title and which transferred all functions of Secretary of Health, Education, and Welfare under this subchapter to Secretary of Education.
Functions of Federal Security Administrator transferred to Secretary of Health, Education, and Welfare and all agencies of Federal Security Agency transferred to Department of Health, Education, and Welfare by section 5 of Reorg. Plan No. 1 of 1953, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631, set out in the Appendix to Title 5, Government Organization and Employees. Federal Security Agency and office of Administrator abolished by section 8 of Reorg. Plan No. 1 of 1953.
Office of Education transferred to Federal Security Agency by Reorg. Plan No. I of 1939, §§201, 204, eff. July 1, 1939, set out in the Appendix to Title 5.
Office of Education created and placed in Department of the Interior by the act of July 20, 1868, ch. 176, 15 Stat. 106, which abolished the Department of Education. In the appropriation act of July 12, 1870, ch. 251, 16 Stat. 242, the Office was designated the Bureau of Education. This designation was retained until the act of May 14, 1930, ch. 273, 46 Stat. 281, 319, which made appropriations for the “Office of Education.”
Office of Education was directed to continue its inspections of Howard University in accordance with provisions of existing law, by Reorg. Plan No. IV of 1940, set out in the Appendix to Title 5, Government Organization and Employees.
For the purpose of assisting in the provision of teaching hospital resources for Howard University, thereby assisting the university in the training of medical and allied personnel and in providing hospital services for the community, the Secretary of Health, Education, and Welfare shall, pursuant to agreement with the board of trustees of Howard University, transfer to Howard University, without reimbursement, all right, title, and interest of the United States in certain lands in the District of Columbia, together with the buildings and improvements thereon and the personal property used in connection therewith (as determined by the Secretary), commonly known as Freedmen's Hospital.
It is the intent of Congress (1) that the transfer of Freedmen's Hospital to Howard University be effected as soon as practicable, (2) to assure the well-being of patients at Freedmen's Hospital during the period of transition, and (3) that the transfer be effected with minimum dislocation of the present hospital staff and maximum consideration of their interests as employees.
The Secretary of Health, Education, and Welfare shall report to the Congress the terms of the agreement for such transfer.
(Pub. L. 87–262, §1, Sept. 21, 1961, 75 Stat. 542.)
Functions of Secretary of Health, Education, and Welfare under laws relating to relationship between Howard University and Department of Health, Education, and Welfare transferred to Secretary of Education by section 3441(a)(2)(M) of this title.
Section 7 of Pub. L. 87–262 provided that: “All laws heretofore applicable specifically to Freedmen's Hospital are, to the extent of such applicability, repealed, effective with the transfer of Freedmen's Hospital pursuant to section 1 [this section].”
Section 8 of Pub. L. 87–262 provided that: “All unexpended balances of appropriations, allocations, and other funds, available or to be made available, of Freedmen's Hospital are, effective with the transfer of Freedmen's Hospital pursuant to section 1 [this section], transferred to Howard University for use in the operation of the Howard University Hospital facilities, except to the extent (determined by the Director of the Bureau of the Budget [Director of the Office of Management and Budget]) required to meet obligations already incurred and not assumed by the university.”
The agreement for transfer of Freedmen's Hospital referred to in section 124 of this title shall include provisions to assure that—
(1) all individuals who are career or career-conditional employees of the hospital on the day preceding the effective date of the transfer of the hospital, except those in positions with respect to which they have been notified not less than six months prior to the effective date of such transfer that their positions are to be abolished, will be offered an opportunity to transfer to Howard University;
(2) Howard University—
(A) will not reduce the salary levels for such employees who transfer,
(B) will deposit currently (i) in the civil service retirement and disability fund referred to in section 8348 of title 5, the employee deductions and agency contributions required by subchapter III of chapter 83 of title 5, and (ii) in the fund referred to in section 8714 of title 5, the employee deductions and agency contributions required by chapter 87 of title 5.
(C) will provide other benefits for such employees as nearly equivalent as may be practicable to those generally applicable, on the effective date of the transfer of the hospital, to civilian employees of the United States, and
(D) in determining the seniority rights of its employees, Howard University will credit service with Freedmen's Hospital performed by such employees who transfer, on the same basis as it would credit such service had it been performed for such University;
(3) the transfer will become effective not later than the beginning of the second month which begins after construction of the new hospital facilities authorized by section 126 of this title is commenced.
The Department of Health, Education, and Welfare shall make every reasonable effort to place in other comparable Federal positions all individuals who are career or career-conditional employees of Freedmen's Hospital on September 21, 1961 and who do not transfer to Howard University.
Each individual who is an employee of Freedmen's Hospital on September 21, 1961 and who transfers to Howard University shall, so long as he is continuously in the employ of Howard University, be regarded as continuing in the employ of the United States for the purposes of subchapter III of chapter 83 of title 5, chapter 87 of title 5. For purposes of section 3121(b) of title 26 and section 410 of title 42, service performed by such individual during the period of his employment at Howard University shall be regarded as though performed in the employ of the United States.
(Pub. L. 87–262, §2, Sept. 21, 1961, 75 Stat. 542; Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095.)
In subsec. (a)(2)(B), “civil service retirement and disability fund referred to in section 8348 of title 5” substituted for “civil service retirement and disability fund required by the Act of May 22, 1920” on authority of Pub. L. 89–554, §7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees. Previously, act May 22, 1920, ch. 195, 41 Stat. 614, was superseded by act May 29, 1930, known as the Civil Service Retirement Act of 1930, which was generally amended by act July 31, 1956, ch. 804, §401, 70 Stat. 743.
In subsecs. (a)(2)(B) and (c), “subchapter III of chapter 83 of title 5” substituted for “the Civil Service Retirement Act” on authority of Pub. L. 89–554, §7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5.
In subsec. (a)(2)(B), “fund referred to in section 8714 of title 5” substituted for “the fund created by section 5(c) of the Federal Employees’ Group Life Insurance Act of 1954” and, in subsecs. (a)(2)(B) and (c), “chapter 87 of title 5” substituted for “the Federal Employees’ Group Life Insurance Act of 1954”, on authority of Pub. L. 89–554, §7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5.
1986—Subsec. (c). Pub. L. 99–514 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.
Functions of Secretary of Health, Education, and Welfare under laws relating to relationship between Howard University and Department of Health, Education, and Welfare transferred to Secretary of Education by section 3441(a)(2)(M) of this title.
For the purpose specified in section 124 of this title, there are authorized to be appropriated such sums as may be necessary for the construction of a building or buildings and facilities, including equipment, and for remodeling of existing buildings (including repair and replacement of equipment) which are to be combined with the building or buildings and facilities so constructed, to provide a hospital with a capacity of not to exceed five hundred beds.
(Pub. L. 87–262, §3, Sept. 21, 1961, 75 Stat. 543.)
If, within twenty years after the completion of construction (as determined by the Secretary of Health, Education, and Welfare) of the new hospital facilities authorized by section 126 of this title, any of such facilities, or of the facilities transferred pursuant to section 124 of this title and combined with such new facilities, are transferred by Howard University to any other person or entity (except a transfer to the United States) or cease to be operated by the university as teaching hospital facilities, the United States shall be entitled to recover from the transferee or the university, in the case of a transfer, or from the university, if there is no transfer, an amount equal to the then value of such facilities (or so much thereof as is involved in the transfer, as the case may be), such value to be determined by agreement of the parties or by action brought in the United States District Court for the District of Columbia.
(Pub. L. 87–262, §4, Sept. 21, 1961, 75 Stat. 543.)
Functions of Secretary of Health, Education, and Welfare under laws relating to relationship between Howard University and Department of Health, Education, and Welfare transferred to Secretary of Education by section 3441(a)(2)(M) of this title.
In order to facilitate operation of teaching hospital facilities at Howard University, there are authorized to be appropriated annually to the university such sums as the Congress may determine, for the partial support of the operation of such facilities giving consideration to the cost imposed by the provisions of section 125 of this title and the portion of the agreement under sections 124 to 129 of this title relating to such provisions. The cost of operating such facilities, the appropriations pursuant to this section, and any other income derived from such operation or available for such purpose shall be identified and accounted for separately in the accounts of the university.
(Pub. L. 87–262, §5, Sept. 21, 1961, 75 Stat. 543.)
It is declared to be the policy of the Congress that, to the extent consistent with good medical teaching practice, the Howard University Hospital facilities shall become progressively more self-supporting. In order to further this policy, the President shall submit to the Congress a report, based on a study of the financing of the operation of the hospital, containing his recommendations on the rate at which, consistent with the above policy, Federal financial participation in such cost of operation shall be reduced. Such report shall be submitted not later than the end of the second calendar year following the year in which the construction of the new hospital facilities, authorized by section 126 of this title, is completed.
(Pub. L. 87–262, §6, Sept. 21, 1961, 75 Stat. 544.)
On and after September 8, 1978, Howard University is authorized to make purchases through the General Services Administration.
(Pub. L. 95–355, title I, §100, Sept. 8, 1978, 92 Stat. 531.)
Section is from the Second Supplemental Appropriations Act, 1978, and contained additional provisions relating to purchases by the American Printing House for the Blind, Gallaudet University, and the National Technical Institute for the Deaf, which are set out in sections 106 and 4362 of this title.
Funds appropriated in this Act or subsequent Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Acts to Howard University shall be subject to financial and program audit by the Secretary of Education and the Secretary may withhold all or any portion of these appropriations if he determines that an institution has not cooperated fully in the conduct of such audits.
(Pub. L. 102–394, title III, §301, Oct. 6, 1992, 106 Stat. 1819.)
Section is from the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1993, and contained additional provisions relating to the American Printing House for the Blind, Gallaudet University, and the National Technical Institute for the Deaf, which are set out as sections 106a and 4363 of this title, respectively.
For purposes of this subchapter—
(1) the term “endowment fund” means a fund, or a tax exempt foundation, established and maintained by Howard University for the purpose of generating income for its support, but which shall not include real estate;
(2) the term “endowment fund corpus” means an amount equal to the grants awarded under this subchapter plus an amount equal to such grants provided by Howard University;
(3) the term “endowment fund income” means an amount equal to the total value of the endowment fund established under this subchapter minus the endowment fund corpus;
(4) the term “Secretary” means the Secretary of Education; and
(5) the term “University” means the Howard University established by the Act of March 2, 1867.
(Pub. L. 98–480, title II, §202, Oct. 17, 1984, 98 Stat. 2245.)
Act of March 2, 1867, referred to in par. (5), is act Mar. 2, 1867, ch. 162, 14 Stat. 438, as amended. Section 8 of this Act is classified to section 123 of this title. For complete classification of this Act to the Code, see Tables.
Section 209 of title II of Pub. L. 98–480 provided that: “This title [see Short Title note below] shall take effect on October 1, 1984.”
Section 201 of title II of Pub. L. 98–480 provided that: “This title [enacting this subchapter, amending section 123 of this title, and enacting provisions set out as a note above] may be cited as the ‘Howard University Endowment Act’.”
(a) The Secretary is authorized to establish an endowment program, in accordance with the provisions of this subchapter, for the purpose of establishing or increasing endowment funds, providing additional incentives to promote fundraising activities, and encouraging independence and self-sufficiency at the University.
(b)(1) From the funds appropriated pursuant to this subchapter for endowments in any fiscal year for the University, the Secretary is authorized to make grants to Howard University. The Secretary may enter into agreements with the University and include in any agreement made pursuant to this subchapter such provisions deemed necessary by the Secretary to assure that the purposes of this subchapter will be achieved.
(2) The University may receive a grant under this section only if it has deposited in the endowment fund established under this subchapter an amount equal to such grant and has adequately assured the Secretary that it will administer the endowment fund in accordance with the requirements of this subchapter. The source of funds for this institutional match shall not include Federal funds or funds derived from an existing endowment fund.
(3) The period of any grant under this section shall not exceed twenty years, and during such period the University shall not withdraw or expend any of its endowment fund corpus. Upon the expiration of any grant period, the University may use the endowment fund corpus plus any endowment fund income for any educational purpose.
(Pub. L. 98–480, title II, §203, Oct. 17, 1984, 98 Stat. 2245.)
(a) The University shall invest its endowment fund corpus and endowment fund income in those low-risk instruments and securities in which a regulated insurance company may invest under the law of the District of Columbia, such as 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 University, in investing its endowment fund corpus and income, shall exercise the judgment and care, under circumstances then prevailing, which a person of prudence, discretion, and intelligence would exercise in the management of his own business affairs.
(Pub. L. 98–480, title II, §204, Oct. 17, 1984, 98 Stat. 2246.)
The University may withdraw and expend its endowment fund income to defray any expenses necessary to its operation, including expenses of operations and maintenance, administration, academic and support personnel, construction and renovation, community and student services programs, technical assistance, and research. No endowment fund income or corpus may be used for any type of support of the executive officers of the University or for any commercial enterprise or endeavor entered into after January 1, 1981. Except as provided in subsection (b) of this section, the University shall not, in the aggregate, withdraw or expend more than 50 per centum of the total aggregate endowment fund income earned prior to the time of withdrawal or expenditure.
The Secretary is authorized to permit the University to withdraw or expend more than 50 per centum of its total aggregate endowment income whenever the University demonstrates such withdrawal or expenditure is necessary because of—
(A) a financial emergency, such as a pending insolvency or temporary liquidity problem;
(B) a life-threatening situation occasioned by a natural disaster or arson; or
(C) another unusual occurrence or exigent circumstance.
(1) If the University withdraws or expends more than the endowment fund income authorized by this section, the University shall repay the Secretary an amount equal to 50 per centum of the amount improperly expended (representing the Federal share thereof).
(2) The University shall not withdraw or expend any endowment fund corpus. If the University withdraws or expends any endowment fund corpus, the University shall repay the Secretary an amount equal to 50 per centum of the amount withdrawn or expended (representing the Federal share thereof) plus any income earned thereon.
(Pub. L. 98–480, title II, §205, Oct. 17, 1984, 98 Stat. 2246.)
(a) After notice and an opportunity for a hearing, the Secretary is authorized to terminate and recover any grant awarded under this subchapter if the University—
(1) withdraws or expends any endowment fund corpus, or any endowment fund income in excess of the amount authorized by section 130aa–3 of this title;
(2) fails to invest its endowment fund corpus or income in accordance with the investment standards set forth in section 130aa–2 of this title; or
(3) fails to account properly to the Secretary concerning investments and expenditures of its endowment fund corpus or income.
(b) If the Secretary terminates a grant under subsection (a) of this section, the University shall return to the Treasury of the United States an amount equal to the sum of the original grant or grants under this subchapter 1 plus any income earned thereon. The Secretary may direct the University to take such other appropriate measures to remedy any violation of this subchapter and to protect the financial interest of the United States.
(Pub. L. 98–480, title II, §206, Oct. 17, 1984, 98 Stat. 2247.)
This subchapter, the first time it appears in subsec. (b), was in the original “this Act” which was translated as reading “this title”, meaning title II of Pub. L. 98–480, Oct. 17, 1984, 98 Stat. 2236, as the probable intent of Congress.
1 See Codification note below.
There is authorized to be appropriated $2,000,000 for the purposes authorized under section 130aa–1 of this title. Funds appropriated under this section shall remain available until expended.
(Pub. L. 98–480, title II, §207, Oct. 17, 1984, 98 Stat. 2247.)
Sections provided for the National Training School for Boys which was governed and managed by a Board of Trustees until July 1, 1939, at which time 1939 Reorg. Plan No. 2 (4 F.R. 2731, 53 Stat. 1431) abolished the Board of Trustees and transferred the School and its functions (including the functions of the Board of Trustees) to the Department of Justice, to be administered by the Director of the Bureau of Prisons, under the direction and supervision of the Attorney General. The School was so operated until May 15, 1968, when it was closed pursuant to order of the Attorney General.
Section 131, act May 27, 1908, ch. 200, §1, 35 Stat. 380, provided that District reform school for boys should be known as National Training School for Boys.
Section 132, acts May 3, 1876, ch. 90, §1, 19 Stat. 49; May 27, 1908, ch. 200, §1, 35 Stat. 380, dealt with appointment of a board of trustees to govern and manage the school.
Section 133, act June 4, 1880, ch. 121, §1, 21 Stat. 156, provided that one of the District commissioners should be a trustee of the school.
Section 134, act May 3, 1876, ch. 90, §16, 19 Stat. 52, provided for appointment of two consulting trustees of the school.
Section 135, acts May 3, 1876, ch. 90, §2, 19 Stat. 49; May 27, 1908, ch. 200, §1, 35 Stat. 380, dealt with corporate capacity and powers of the board of trustees.
Section 136, acts May 3, 1876, ch. 90, §15, 19 Stat. 52; June 5, 1900, ch. 715, 31 Stat. 267, authorized board of trustees to make by-laws, rules, and regulations.
Section 137, act May 3, 1876, ch. 90, §14, 19 Stat. 51, dealt with contracts and purchases, the executive officer, and annual reports.
Section 138, act May 3, 1876, ch. 90, §3, 19 Stat. 49, dealt with appointment and compensation of a superintendent and other employees of the school.
Section 139, acts May 3, 1876, ch. 90, §4, 19 Stat. 49; June 10, 1921, ch. 18, §304, 42 Stat. 24, dealt with appointment, bonding, and duties of a treasurer of the school.
Section 140, act May 3, 1876, ch. 90, §5, 19 Stat. 50, dealt with bonding of the superintendent.
Section 141, act May 3, 1876, ch. 90, §6, 19 Stat. 50, dealt with powers and duties of the superintendent and subordinate employees.
Section 142, act May 3, 1876, ch. 90, §7, 19 Stat. 50, provided that superintendent be in charge of lands and other property of the school, books of accounts, register of boys, and examination of school and accounts.
Section 143, act Mar. 3, 1881, ch. 134, §1, 21 Stat. 459, dealt with a report of school officers to District commissioners.
Section 144, acts Aug. 6, 1890, ch. 724, §1, 26 Stat. 307; Mar. 3, 1905, ch. 1483, 33 Stat. 1211, dealt with disposition of proceeds of the school farm and shops.
Section 145, acts May 3, 1876, ch. 90, §8, 19 Stat. 50; June 5, 1900, ch. 715, 31 Stat. 266, dealt with commitment of boys under age 17 to the school.
Section 146, acts May 3, 1876, ch. 90, §9, 19 Stat. 51; June 5, 1900, ch. 715, 31 Stat. 267, related to period of detention.
Section 147, act May 3, 1876, ch. 90, §10, 19 Stat. 51, limited number of boys at the school to number that can be properly accommodated.
Section 148, act May 3, 1876, ch. 90, §11, 19 Stat. 51, dealt with penalties for enticing boy from school or harboring escaped boy, and for arrest and return of escapees.
Section 149, act May 3, 1876, ch. 90, §12, 19 Stat. 51, dealt with employment and instruction of boys, apprenticing, and indentures of apprenticeship.
Section 150, act Feb. 26, 1909, ch. 217, §1, 35 Stat. 657, dealt with release on parole of juvenile offenders committed to the school.
Section 151, act Feb. 26, 1909, ch. 217, §2, 35 Stat. 657, authorized board of trustees to parole boys, subject to approval of Attorney General in certain cases.
Section 152, acts May 3, 1876, ch. 90, §13, 19 Stat. 51; Aug. 1, 1914, ch. 223, §1, 38 Stat. 657; Mar. 28, 1918, ch. 28, §1, 40 Stat. 494, dealt with District support of boys committed, accounts, payment, and rates.
Sections provided for the National Training School for Girls. Act Aug. 3, 1951, ch. 291, §1, 65 Stat. 154, provided that no new commitments to the National Training School for Girls should be made after Aug. 3, 1951. Act July 31, 1953, ch. 299, §1, 67 Stat. 286, redesignated the National Training School for Girls as the Industrial Home School for Colored Girls and authorized construction of a new Industrial Home School for Colored Children near Laurel, Maryland. Act July 1, 1954, ch. 449, §1, 68 Stat. 385, provided that the Industrial Home School for Colored Girls shall be combined with and become a part of the Industrial Home School for Colored Children. Act Sept. 4, 1957, Pub. L. 85–285, §1, 71 Stat. 610, provided in part for the disposition of the land of the United States reserved for a site for the National Training School for Girls by the Act of July 14, 1892 (27 Stat. 165), as amended.
Section 161, act June 26, 1912, ch. 182, §1, 37 Stat. 171, provided that District reform school for girls should be known as National Training School for Girls.
Section 162, acts July 9, 1888, §§1, 7, 25 Stat. 245, 246; June 26, 1912, ch. 182, §1, 37 Stat. 171; Mar. 16, 1926, ch. 58, §1, 44 Stat. 208, dealt with incorporation.
Section 163, acts July 9, 1888, ch. 595, §2, 25 Stat. 245; June 26, 1912, ch. 182, §1, 37 Stat. 171; Mar. 16, 1926, ch. 58, §1, 44 Stat. 208, provided authority to establish and maintain a training school for girls within District of Columbia.
Section 164, acts July 9, 1888, ch. 595, §3, 25 Stat. 246; May 27, 1908, ch. 200, §1, 35 Stat. 380; Mar. 16, 1926, ch. 58, §1, 44 Stat. 208, provided same power and authority as board of trustees of National Training School for Boys had in relation to boys.
Section 165, acts May 3, 1876, ch. 90, §15, 19 Stat. 52; July 9, 1888, ch. 595, §5, 25 Stat. 246; Feb. 25, 1901, ch. 478, 31 Stat. 810; Mar. 16, 1926, ch. 58, §1, 44 Stat. 208, authorized making of by-laws, rules, and regulations.
Section 166, acts July 9, 1888, ch. 595, §4, 25 Stat. 246; Mar. 16, 1926, ch. 58, §1, 44 Stat. 208, dealt with appointment and compensation of officers and employees.
Section 167, acts Feb. 28, 1923, ch. 148, §1, 42 Stat. 1358; Mar. 16, 1926, ch. 58, §1, 44 Stat. 208, dealt with control over inmates.
Section 168, acts July 9, 1888, ch. 595, §6, 25 Stat. 246; June 26, 1912, ch. 182, §1, 37 Stat. 171, dealt with applicability of laws relating to National Training School for Boys to school for girls.
Section 169, acts May 3, 1876, ch. 90, §8, 19 Stat. 50; July 9, 1888, ch. 595, §6, 25 Stat. 245; Feb. 25, 1901, ch. 478, 31 Stat. 809; Mar. 19, 1906, ch. 960, §8, 34 Stat. 73; Mar. 16, 1926, ch. 58, §1, 44 Stat. 208; Aug. 3, 1951, ch. 291, §3, 65 Stat. 154, related to commitment of girls under 17 years of age.
Section 170, acts May 3, 1876, ch. 90, §9, 19 Stat. 51; July 9, 1888, ch. 595, §6, 25 Stat. 245; Feb. 25, 1901, ch. 478, 31 Stat. 810; June 26, 1912, ch. 182, §1, 37 Stat. 171, related to period of detention.
Section 171, act Apr. 15, 1910, ch. 164, §1, 36 Stat. 300, dealt with release on parole of juvenile offenders committed to the school.
Section 172, acts Apr. 15, 1910, ch. 164, §2, 36 Stat. 300; Mar. 16, 1926, ch. 58, §1, 44 Stat. 208, authorized parole of girls, subject to approval of the Attorney General in certain cases.
Section 173, act June 5, 1920, ch. 234, §1, 41 Stat. 865, dealt with disbursement of appropriations for the school.
Section 174, act July 9, 1888, ch. 595, §8, 25 Stat. 246, reserved to Congress the right to alter, amend, or repeal this chapter.
The Secretary of Agriculture is authorized and directed to establish and maintain a national arboretum for purposes of research and education concerning tree and plant life. For the purposes of this chapter, (1) the President is authorized to transfer to the jurisdiction of the Secretary of Agriculture by Executive order any land which now belongs to the United States within or adjacent to the District of Columbia located along the Anacostia River north of Benning Bridge, and (2) the Secretary of Agriculture is authorized in his discretion to acquire, within the limits of the appropriation authorized by this chapter by private purchase, condemnation proceedings, or gift, land so located or other land within or adjacent to the District of Columbia: Provided, That the purchase price of any part of said land shall not exceed the full value assessment of such property last made before purchase thereof plus 25 per centum of such assessed value.
(Mar. 4, 1927, ch. 505, §1, 44 Stat. 1422.)
Functions of all officers, agencies and employees of Department of Agriculture transferred, with certain exceptions, to Secretary of Agriculture by Reorg. Plan No. 2 of 1953, §1, eff. June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out in the Appendix to Title 5, Government Organization and Employees.
Authority of President under this section to transfer to jurisdiction of Secretary of Agriculture for purposes of this chapter any land belonging to United States within or adjacent to District of Columbia located along Anacostia River north of Benning Bridge delegated to Administrator of General Services, see section 1(18) of Ex. Ord. No. 11609, July 22, 1971, 36 F.R. 13747, set out as a note under section 301 of Title 3, The President.
Pub. L. 103–111, title I, Oct. 21, 1993, 107 Stat. 1051, provided in part: “That hereafter, facilities to house bonsai collections at the National Arboretum may be constructed with funds accepted under the provisions of Public Law 94–129 (20 U.S.C. 195) and the limitation on construction contained in the Act of August 24, 1912 (40 U.S.C. 68) [now 40 U.S.C. 8106] shall not apply to the construction of such facilities”.
Similar provisions were contained in the following prior appropriations acts:
Pub. L. 102–341, title I, Aug. 14, 1992, 106 Stat. 878.
Pub. L. 102–142, title I, Oct. 28, 1991, 105 Stat. 883.
Pub. L. 101–506, title I, Nov. 5, 1990, 104 Stat. 1320.
Pub. L. 101–161, title I, Nov. 21, 1989, 103 Stat. 956.
Pub. L. 100–460, title I, Oct. 1, 1988, 102 Stat. 2234.
Pub. L. 100–202, §101(k) [title I], Dec. 22, 1987, 101 Stat. 1329–322, 1329–327.
Pub. L. 99–500, §101(a) [title I], Oct. 18, 1986, 100 Stat. 1783, 1783–5, and Pub. L. 99–591, §101(a) [title I], Oct. 30, 1986, 100 Stat. 3341, 3341–5.
Section, act Mar. 4, 1927, ch. 505, §2, 44 Stat. 1422, authorized appropriation of $300,000 to be expended for acquisition of land specified in section 191 of this title.
In order to stimulate research and discovery the national arboretum established by the Secretary of Agriculture in accordance with the provisions of this chapter shall be under competent scientific direction. The arboretum shall be administered by the Secretary of Agriculture separately from the agricultural, horticultural, and forestry stations of the Department of Agriculture, but it shall be so correlated with them as to bring about the most effective utilization of its facilities and discoveries.
(Mar. 4, 1927, ch. 505, §3, 44 Stat. 1422.)
The Secretary of Agriculture is authorized to create an advisory council in relation to the plan and development of the national arboretum to be established under this chapter, to include representatives of national organizations interested in the work of the arboretum.
(Mar. 4, 1927, ch. 505, §4, 44 Stat. 1422.)
Advisory councils in existence on Jan. 5, 1973, to terminate not later than the expiration of the 2-year period following Jan. 5, 1973, unless, in the case of a council established by the President or an officer of the Federal Government, such council is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a council established by the 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.
Notwithstanding any other provision of law, the Secretary of Agriculture is authorized to solicit, accept, receive, hold, utilize, and administer on behalf of the United States gifts, bequests, or devises of real and personal property made for the benefit of the National Arboretum or for the carrying out of any of its functions. For the purposes of the Federal income, estate, and gift tax laws, property accepted under the authority of this section shall be considered as a gift, bequest, or devise to the United States. Any gift of money accepted pursuant to the authority granted in this section, or the net proceeds from the liquidation of any property so accepted, or the proceeds of any insurance on any gift property not used for its restoration shall be deposited in the Treasury of the United States for credit to a separate fund and shall be disbursed upon order of the Secretary of Agriculture.
(Mar. 4, 1927, ch. 505, §5, as added Pub. L. 94–129, Nov. 13, 1975, 89 Stat. 683; amended Pub. L. 104–127, title VIII, §890(a), Apr. 4, 1996, 110 Stat. 1181.)
1996—Pub. L. 104–127 inserted “solicit,” after “authorized to” in first sentence.
Notwithstanding chapters 1 to 11 and section 1302 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41, the Secretary of Agriculture, in furtherance of the mission of the National Arboretum, may—
(1) negotiate agreements granting concessions at the National Arboretum to nonprofit scientific or educational organizations the interests of which are complementary to the mission of the National Arboretum, except that the net proceeds of the organizations from the concessions shall be used exclusively for research and educational work for the benefit of the National Arboretum;
(2) provide by concession, on such terms as the Secretary of Agriculture considers appropriate and necessary, for commercial services for food, drink, and nursery sales, if an agreement for a permanent concession under this paragraph is negotiated with a qualified person submitting a proposal after due consideration of all proposals received after the Secretary of Agriculture provides reasonable public notice of the intent of the Secretary to enter into such an agreement;
(3) dispose of excess property, including excess plants and fish, in a manner designed to maximize revenue from any sale of the property, including by way of public auction, except that this paragraph shall not apply to the free dissemination of new varieties of seeds and germ plasm in accordance with section 2201 of title 7;
(4) charge such fees as the Secretary of Agriculture considers reasonable for temporary use by individuals or groups of National Arboretum facilities and grounds for any purpose consistent with the mission of the National Arboretum;
(5) charge such fees as the Secretary of Agriculture considers reasonable for the use of the National Arboretum for commercial photography or cinematography;
(6) publish, in print and electronically and without regard to laws relating to printing by the Federal Government, informational brochures, books, and other publications concerning the National Arboretum or the collections of the Arboretum; and
(7) license use of the National Arboretum name and logo for public service or commercial uses.
Any funds received or collected by the Secretary of Agriculture as a result of activities described in subsection (a) of this section shall be retained in a special fund in the Treasury. Amounts in the special fund shall be available to the Secretary of Agriculture, without further appropriation, for the use and benefit of the National Arboretum as the Secretary of Agriculture considers appropriate.
The Secretary of Agriculture may accept the voluntary services of organizations described in subsection (a)(1) of this section, and the voluntary services of individuals (including employees of the National Arboretum), for the benefit of the National Arboretum.
(Mar. 4, 1927, ch. 505, §6, as added Pub. L. 104–127, title VIII, §890(b), Apr. 4, 1996, 110 Stat. 1181; amended Pub. L. 105–185, title VI, §601(b), June 23, 1998, 112 Stat. 585.)
In subsec. (a), “chapters 1 to 11 and section 1302 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41” substituted for “the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and section 321 of the Act of June 30, 1932 (40 U.S.C. 303b)” on authority of Pub. L. 107–217, §5(c), Aug. 21, 2002, 116 Stat. 1303, which Act enacted Title 40, Public Buildings, Property, and Works, and Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
1998—Subsec. (b). Pub. L. 105–185 substituted “Treasury. Amounts in the special fund shall be available to the Secretary of Agriculture, without further appropriation,” for “Treasury”.
A Chinese Garden may be constructed at the National Arboretum established under this chapter with—
(1) funds accepted under section 195 of this title;
(2) authorities provided to the Secretary of Agriculture under section 196 of this title; and
(3) appropriations provided for this purpose.
(Mar. 4, 1927, ch. 505, §7, as added Pub. L. 110–234, title VII, §7415, May 22, 2008, 122 Stat. 1256, and Pub. L. 110–246, §4(a), title VII, §7415, June 18, 2008, 122 Stat. 1664, 2017.)
Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.
Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.
The President is authorized, in his discretion and under such regulations as he may prescribe by Executive order, to permit citizens of the American republics to receive instruction, with or without charge therefor, at professional educational institutions and schools maintained and administered by the Government of the United States or by departments or agencies thereof: Provided, That such citizens shall agree to comply with all regulations for the government of the institutions and schools at which they may be under instruction and to exert every effort to accomplish successfully the courses of instruction prescribed: And provided further, That the regulations prescribed by the President under the authority of this section shall contain provisions limiting the admission of citizens of the American republics to primary schools maintained and administered by the Government of the United States so that there will under no circumstances be any curtailment of the admission of citizens of the United States eligible to receive instruction therein.
(June 24, 1938, ch. 644, 52 Stat. 1034; July 14, 1941, ch. 292, 55 Stat. 589; June 26, 1946, ch. 493, §1, 60 Stat. 311.)
Section originally provided that “not more than one citizen of any American republic shall receive instruction at the same time in the United States Military Academy and not more than one in the United States Naval Academy.” This phrase has been omitted in view of acts July 14, 1941, and June 26, 1946. See sections 4344, 6957, and 9344 of Title 10, Armed Forces.
After June 26, 1946, no person shall have authority to permit citizens of the American Republics to receive instruction at the United States Military Academy under the provisions of section 221 of this title. Any person who is receiving instruction at the United States Military Academy on June 26, 1946, under authority of section 221 of this title, may, in the discretion of the President, be permitted to continue to receive such instruction and, if so permitted, shall thereafter be deemed to be receiving instruction under the provisions of sections 4344 and 9344 of title 10.
(June 26, 1946, ch. 493, §2, 60 Stat. 312.)
Words “sections 4344 and 9344 of title 10” substituted in text for “section 1 of this Act”, meaning section 1 of act June 27, 1946, ch. 493, 60 Stat. 311, on authority of act Aug. 10, 1956, §49(b), ch. 1041, 70A Stat. 640, the first section of which enacted Title 10, Armed Forces.
Sections, act Aug. 24, 1949, ch. 505, §§1–3, 63 Stat. 630, authorized the creation of a special deposit account for sums due or paid by the Republic of Finland to the United States as interest on or in retirement of the principal of the debt incurred under the act of Feb. 25, 1919, as refunded by the agreement dated May 1, 1923, pursuant to authority contained in sections 805 to 809 of former Title 31, Money and Finance, or of any other indebtedness incurred by Finland and owing to the United States as a result of World War I, provided for the use of such fund for exchange of students, professors, etc., for the interchange of books and technical equipment, and for disbursements from the account. See section 2451 et seq. of Title 22, Foreign Relations and Intercourse, particularly section 2455.
Continuation in full force and effect, and applicability to the appropriate provisions of the Mutual Educational and Cultural Exchange Act of 1961, set out in section 2451 et seq. of Title 22, Foreign Relations and Intercourse, until modified or superseded by appropriate authority, of all Executive orders, agreements, determinations, regulations, contracts, appointments, and other actions issued, concluded, or taken under authority of these sections, see section 111(b) of Pub. L. 87–256, set out as a note under section 2451 of Title 22.
There is authorized to be appropriated, out of any funds in the Treasury of the United States not otherwise appropriated, the sum of $110,000, which sum shall be expended by the Secretary of State in his discretion for the education of Iranian students in the United States, in accordance with the obligation of the United States arising out of the agreement contained in an exchange of notes between this Government and the Iranian Government of July 25, July 29, November 9, and November 15, 1924, which agreement settled a claim asserted by the United States.
The said sum of $110,000 shall be deemed a trust fund received by the Secretary of State under the provisions of section 2668a of title 22, and shall be expended as therein provided. The said sum shall be deemed to constitute the fund of $110,000 received by the United States from the Iranian Government in four installments between December 24, 1924, and March 29, 1925, pursuant to the afore-mentioned notes, and deposited in the Treasury of the United States on June 24, 1925, which fund shall be deemed, insofar as the same may be necessary, to have been heretofore appropriated as a trust fund under section 2668a of title 22 and sections 1321 and 1322(a) of title 31. The Secretary of the Treasury shall make payments out of the said fund to or for the account of such persons, in such amounts, at such times, and on such terms, as the Secretary of State or his designee shall certify and the certificates of the Secretary of State or his designee issued hereunder shall be conclusive as to the propriety of payments so made. The expenditure of the said sum by the United States shall constitute full performance of the obligation of the United States to the Iranian Government or any other person arising out of the said notes and shall discharge the Secretary of State and the Secretary of the Treasury with respect to any accountability therefor.
(Sept. 29, 1950, ch. 1110, §§1, 2, 64 Stat. 1081.)
Words “section 2668a of title 22” substituted in text for “the Act of February 27, 1896, (29 Stat. 32, title 31, U.S.C. sec. 547)” and “the said Act of February 27, 1896” to reflect the transfer of section 547 of Title 31, Money and Finance, to section 2668a of Title 22, Foreign Relations and Intercourse.
Words “sections 1321 and 1322(a) of title 31” substituted in text for “the Permanent Appropriation Repeal Act, 1934, as amended, section 20 (48 Stat. 1233, 31 U.S.C., sec. 725(s) [31 U.S.C. 725s]” on authority of Pub. L. 97–258, §4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31.
It is the purpose of this section to encourage the establishment of partnerships between State governments, universities, community colleges, and businesses to support scholarships for talented socially and economically disadvantaged students from eligible countries in the Caribbean and Central America to study in the United States in order to—
(1) improve the diversity and quality of educational opportunities for such students;
(2) assist the development efforts of eligible countries by providing training and educational assistance to persons who can help address the social and economic needs of these countries;
(3) expand opportunities for cross-cultural studies and exchanges and improve the exchange of understanding and principles of democracy;
(4) promote positive and productive relationships between the United States and its neighbor countries in the Caribbean and Central American regions;
(5) give added visibility and focus to the “scholarship diplomacy” efforts of the United States Government by leveraging the monies available for this purpose through the development of partnerships among Federal, State, and local governments and the business and academic communities; and
(6) promote community involvement with the scholarship program as a tool for broadening and strengthening the “American experience” for foreign students.
The Administrator of the Agency for International Development shall establish and administer a program of scholarship assistance, in cooperation with State governments, universities, community colleges, and businesses, to provide scholarships to enable socially and economically disadvantaged students from eligible countries in the Caribbean and Central America to study in the United States.
In carrying out this section, the Administrator may make grants to States to provide scholarship assistance for undergraduate degree programs and for training programs of one year or longer in study areas related to the critical development needs of the students’ respective countries.
The Administrator and each participating State shall agree on a program regarding the educational opportunities available within the State, the selection and assignment of scholarship recipients, and related issues. To the maximum extent practicable, each State shall be given flexibility in designing its program.
The Federal share for each year for which a State receives payments under this section shall be not less than 50 percent.
The non-Federal share of payments under this section may be in cash, including the waiver of tuition or the offering of in-State tuition or housing waivers or subsidies, or in-kind fairly evaluated, including the provision of books or supplies.
The obligation of any recipient to reimburse any entity for any or all scholarship assistance provided under this section shall be forgiven upon the recipient's prompt return to his or her country of domicile for a period which is at least one year longer than the period spent studying in the United States with scholarship assistance.
To the maximum extent practicable, each participating State shall enlist the assistance of the private sector to enable the State to meet the non-Federal share of payments under this section. Wherever appropriate, each participating State shall encourage the private sector to offer internships or other opportunities consistent with the purposes of this section to students receiving scholarships under this section.
Any funds used in carrying out this section shall be derived from funds allocated for Latin American and Caribbean regional programs under chapter 4 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346 and following; relating to the economic support fund).
As used in this section—
(1) The term “eligible country” means any country—
(A) which is receiving assistance under chapter 1 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 and following; relating to development assistance) or chapter 4 of part II of that Act (22 U.S.C. 2346 and following; relating to the economic support fund); and
(B) which is designated by the President as a beneficiary country pursuant to the Caribbean Basin Economic Recovery Act [19 U.S.C. 2701 et seq.].
(2) The term “State” means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Trust Territory of the Pacific Islands, and the Commonwealth of the Northern Mariana Islands.
(Pub. L. 101–382, title II, §231, Aug. 20, 1990, 104 Stat. 661.)
The Foreign Assistance Act of 1961, referred to in subsecs. (i) and (j)(1)(A), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, as amended. Chapter 1 of part I and chapter 4 of part II of the Foreign Assistance Act of 1961 are classified generally to part I (§2151 et seq.) of subchapter I and part IV (§2346 et seq.) of subchapter II, respectively, of chapter 32 of Title 22, Foreign Relations and Intercourse. For provisions deeming references to part I of subchapter I to include a reference to section 2293 of Title 22, see section 2293(d)(1) of Title 22. For complete classification of this Act to the Code, see Short Title note set out under section 2151 of Title 22 and Tables.
The Caribbean Basin Economic Recovery Act, referred to in subsec. (j)(1)(B), is title II of Pub. L. 98–67, Aug. 5, 1983, 97 Stat. 384, which is classified principally to chapter 15 (§2701 et seq.) of Title 19, Customs Duties. For complete classification of this Act to the Code, see Short Title note set out under section 2701 of Title 19 and Tables.
For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.
Sections, act Sept. 10, 1949, ch. 582, 63 Stat. 697, related to Federal aid to local school agencies to provide educational opportunities to children in federally affected areas, received appropriations of $7,500,000 only for the fiscal year 1950.
Section 236, acts Sept. 30, 1950, ch. 1124, title I, §1, formerly §1, 64 Stat. 1100, renumbered title I, §1, and amended Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 27; Apr. 28, 1988, Pub. L. 100–297, title II, §2012(b), 102 Stat. 294, related to Congressional declaration of policy and authorization of appropriations. See section 7701 of this title.
Section 237, acts Sept. 30, 1950, ch. 1124, title I, §2, formerly §2, 64 Stat. 1101; Aug. 8, 1953, ch. 402, §1, 67 Stat. 530; Aug. 12, 1955, ch. 868, §1, 69 Stat. 713; Aug. 3, 1956, ch. 915, title II, §201, 70 Stat. 970; Aug. 12, 1958, Pub. L. 85–620, title II, §201, 72 Stat. 559; Oct. 3, 1961, Pub. L. 87–344, title I, §102(a), 75 Stat. 759; Dec. 18, 1963, Pub. L. 88–210, title III, §302, formerly §32, 77 Stat. 419, renumbered Oct. 16, 1968, Pub. L. 90–576, title I, §101(a)(1), 82 Stat. 1064; Oct. 16, 1964, Pub. L. 88–665, title XI, §1102(a), 78 Stat. 1109; renumbered and amended Apr. 11, 1965, Pub. L. 89–10, title I, §§2, 5, 79 Stat. 27, 36; Jan. 2, 1968, Pub. L. 90–247, title II, §204(a)–(c), title III, §301(e), 81 Stat. 808, 813; Apr. 13, 1970, Pub. L. 91–230, title II, §201(b), 84 Stat. 154; Aug. 21, 1974, Pub. L. 93–380, title III, §303(a)(1), 88 Stat. 522; Apr. 21, 1976, Pub. L. 94–273, §3(5), 90 Stat. 376; Nov. 1, 1978, Pub. L. 95–561, title X, §1001(a), 92 Stat. 2306; Oct. 19, 1984, Pub. L. 98–511, title III, §301(a)(1), 98 Stat. 2388; Apr. 28, 1988, Pub. L. 100–297, title II, §§2011(a)(1), 2012(a), 2013, 102 Stat. 294; May 11, 1989, Pub. L. 101–26, §2(a), 103 Stat. 54; May 30, 1990, Pub. L. 101–305, §7(a), 104 Stat. 259; Nov. 16, 1990, Pub. L. 101–589, title VII, §722(a), 104 Stat. 2912, related to Federal contributions to local educational agencies. See section 7702 of this title.
Section 238, acts Sept. 30, 1950, ch. 1124, title I, §3, formerly §3, 64 Stat. 1102; Aug. 8, 1953, ch. 402, §2, 67 Stat. 530; Aug. 12, 1955, ch. 868, §1, 69 Stat. 713; Aug. 1, 1956, ch. 852, §10, 70 Stat. 909; Aug. 3, 1956, ch. 915, title II, §§202–206, 70 Stat. 970, 971; Aug. 12, 1958, Pub. L. 85–620, title II, §202, 72 Stat. 559; June 25, 1959, Pub. L. 86–70, §18(d)(1)–(3), 73 Stat. 144, 145; July 12, 1960, Pub. L. 86–624, §14(d)(1)–(3), 74 Stat. 414; Oct. 3, 1961, Pub. L. 87–344, title I, §102(a), 75 Stat. 759; Dec. 18, 1963, Pub. L. 88–210, title III, §302, formerly §32, 77 Stat. 419, renumbered Oct. 16, 1968, Pub. L. 90–576, title I, §101(a)(1), 82 Stat. 1064; Oct. 16, 1964, Pub. L. 88–665, title XI, §1102(a), 78 Stat. 1109; renumbered and amended Apr. 11, 1965, Pub. L. 89–10, title I, §§2, 3(a), 4(d)(2), 5, 79 Stat. 27, 34–36; Nov. 1, 1965, Pub. L. 89–313, §4(a), 79 Stat. 1161; Nov. 3, 1966, Pub. L. 89–750, title II, §201, 80 Stat. 1210; Jan. 2, 1968, Pub. L. 90–247, title II, §§204(d), 205(a), 206, title III, §301(e), 81 Stat. 808, 809, 813; Apr. 13, 1970, Pub. L. 91–230, title II, §§201(b), 202, 84 Stat. 154, 155; Aug. 21, 1974, Pub. L. 93–380, title III, §§304(a)(1), (b)(1), 305(a)(1), 88 Stat. 522, 523; Apr. 21, 1976, Pub. L. 94–273, §3(5), 90 Stat. 376; Nov. 1, 1978, Pub. L. 95–561, title X, §§1001(b), 1002, 1003(a), (b), (d), 1004, 1031(a), title XI, §1101(a), 92 Stat. 2306, 2307, 2312, 2313; Aug. 13, 1981, Pub. L. 97–35, title V, §505(a)(2), 95 Stat. 442; Sept. 24, 1983, Pub. L. 98–94, title XII, §1255(b), 97 Stat. 701; Oct. 19, 1984, Pub. L. 98–511, title III, §§301(a)(1)–(3), 303(a), 98 Stat. 2388; Nov. 8, 1984, Pub. L. 98–619, title III, §300, 98 Stat. 3323; July 2, 1986, Pub. L. 99–349, title I, 100 Stat. 739, 740; Apr. 28, 1988, Pub. L. 100–297, title II, §§2011(a)(1), 2012(a), 2014, 2019, 102 Stat. 294, 300; May 11, 1989, Pub. L. 101–26, §2(b), 103 Stat. 54; May 30, 1990, Pub. L. 101–305, §3(a), (b), 104 Stat. 255, 256; Oct. 30, 1990, Pub. L. 101–476, title IX, §901(a)(3), (f)(1), 104 Stat. 1142, 1151; Aug. 17, 1991, Pub. L. 102–103, title IV, §401, 105 Stat. 508, related to payments to local school agencies. See section 7703 of this title.
Section 239, acts Sept. 30, 1950, ch. 1124, title I, §4, formerly §4, 64 Stat. 1104; Aug. 8, 1953, ch. 402, §§3–5, 67 Stat. 532–534; Aug. 12, 1955, ch. 868, §§1, 2, 69 Stat. 713; Aug. 3, 1956, ch. 915, title II, §§207, 208, 70 Stat. 972; Aug. 12, 1958, Pub. L. 85–620, title II, §203, 72 Stat. 560; Oct. 3, 1961, Pub. L. 87–344, title I, §102(a), 75 Stat. 759; Dec. 18, 1963, Pub. L. 88–210, title III, §302, formerly §32, 77 Stat. 419, renumbered Oct. 16, 1968, Pub. L. 90–576, title I, §101(a)(1), 82 Stat. 1064; Oct. 16, 1964, Pub. L. 88–665, title XI, §1102(a), 78 Stat. 1109; renumbered and amended Apr. 11, 1965, Pub. L. 89–10, title I, §§3(b), 5, 79 Stat. 34, 36; Jan. 2, 1968, Pub. L. 90–247, title III, §301(e), 81 Stat. 813; Apr. 13, 1970, Pub. L. 91–230, title II, §201(b), 84 Stat. 154; Aug. 21, 1974, Pub. L. 93–380, title III, §303(a)(2), 88 Stat. 522; Apr. 21, 1976, Pub. L. 94–273, §3(5), 90 Stat. 376; Nov. 1, 1978, Pub. L. 95–561, title X, §1001(c), 92 Stat. 2306; Oct. 19, 1984, Pub. L. 98–511, title III, §301(a)(1), 98 Stat. 2388; Apr. 28, 1988, Pub. L. 100–297, title II, §§2011(a)(1), 2012(a), 102 Stat. 294, related to sudden and substantial increases in attendance resulting from activities of the United States.
Section 3(a)(3)(B) of Pub. L. 103–382 provided that: “Part C [§331, repealing sections 236 to 239, 240 to 241–1, 242 to 244, and 631 to 647 of this title] of title III of this Act and the amendments made by such part shall take effect on October 1, 1994.”
Section, act Sept. 30, 1950, ch. 1124, title I, §4A, as added Oct. 3, 1980, Pub. L. 96–374, title XIII, §1341, 95 Stat. 1500, related to payments for special programs for alien children who fled from Cambodia, Vietnam, Laos, Cuba, or Haiti. See provisions set out as notes under section 1522 of Title 8, Aliens and Nationality.
Repeal effective Oct. 1, 1981, see section 547 of Pub. L. 97–35, set out as a note under section 1522 of Title 8, Aliens and Nationality.
Section 240, acts Sept. 30, 1950, ch. 1124, title I, §5, formerly §5, 64 Stat. 1106; Aug. 8, 1953, ch. 402, §§6, 7, 67 Stat. 534; Aug. 3, 1956, ch. 915, title II, §209, 70 Stat. 972; renumbered title I, §5, and amended Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 27; Nov. 3, 1966, Pub. L. 89–750, title II, §§202, 203, 80 Stat. 1211, 1212; Oct. 16, 1968, Pub. L. 90–576, title III, §305(a), 82 Stat. 1097; Apr. 13, 1970, Pub. L. 91–230, title II, §203(c)(4), 84 Stat. 156; June 23, 1972, Pub. L. 92–318, title IV, §411(c)(1), 86 Stat. 338; Aug. 21, 1974, Pub. L. 93–380, title III, §§304(c)(1), (2), (d)(2), 305(a)(2), 88 Stat. 522, 523, 529; Apr. 21, 1976, Pub. L. 94–273, §3(5), 90 Stat. 376; Oct. 12, 1976, Pub. L. 94–482, title III, §330(a), (b)(1)–(3), 90 Stat. 2221; Nov. 1, 1978, Pub. L. 95–561, title X, §§1003(c), 1005, 1006(a), 1007, 1008, title XI, §1101(b), (c), (e), 92 Stat. 2306–2309, 2313, 2315; Aug. 6, 1979, Pub. L. 96–46, §3(b), 93 Stat. 342; Oct. 31, 1983, Pub. L. 98–139, title III, 97 Stat. 889; Dec. 8, 1983, Pub. L. 98–211, §23, 97 Stat. 1419; Aug. 22, 1984, Pub. L. 98–396, title I, §101, 98 Stat. 1393; Oct. 19, 1984, Pub. L. 98–511, title III, §303(b)(1), 98 Stat. 2389; Apr. 28, 1988, Pub. L. 100–297, title II, §§2011(a)(1), (2), 2015, 102 Stat. 294, 296; May 11, 1989, Pub. L. 101–26, §2(c)–(e), 103 Stat. 54, 55; May 30, 1990, Pub. L. 101–305, §3(c), (d), 104 Stat. 256, 257; Nov. 16, 1990, Pub. L. 101–589, title VII, §722(d), 104 Stat. 2913; Aug. 17, 1991, Pub. L. 102–103, title IV, §402, 105 Stat. 508; Nov. 13, 1991, Pub. L. 102–159, §2, 105 Stat. 1042; Oct. 23, 1992, Pub. L. 102–484, div. A, title III, §387, 106 Stat. 2397, related to payments to local educational agencies. See section 7705 of this title.
Section 241, acts Sept. 30, 1950, ch. 1124, title I, §6, formerly §6, 64 Stat. 1107; Aug. 8, 1953, ch. 402, §8, 67 Stat. 535; Aug. 1, 1955, ch. 446, 69 Stat. 433; Aug. 1, 1956, ch. 852, §10, 70 Stat. 909; May 6, 1960, Pub. L. 86–449, title V, §501, 74 Stat. 89; renumbered title I, §6, and amended Apr. 11, 1965, Pub. L. 89–10, title I, §§2, 4(d)(2), 79 Stat. 27, 35; July 21, 1965, Pub. L. 89–77, §2, 79 Stat. 243; Nov. 3, 1966, Pub. L. 89–750, title II, §204, 80 Stat. 1212; Apr. 13, 1970, Pub. L. 91–230, title IV, §401(f)(1), 84 Stat. 173; Nov. 1, 1978, Pub. L. 95–561, title X, §§1009, 1031(a), 92 Stat. 2309, 2312; Apr. 28, 1988, Pub. L. 100–297, title II, §§2011(a)(1), 2016, 102 Stat. 294, 299; Oct. 7, 1991, Pub. L. 102–119, §23(a), 105 Stat. 604, related to education of children where local agencies cannot supply facilities.
Section 241–1, acts Sept. 30, 1950, ch. 1124, title I, §7, as added Nov. 1, 1965, Pub. L. 89–313, §2, 79 Stat. 1159; amended Jan. 2, 1968, Pub. L. 90–247, title II, §218, 81 Stat. 811; Oct. 21, 1968, Pub. L. 90–608, ch. IV, §402, 82 Stat. 1194; Apr. 13, 1970, Pub. L. 91–230, title II, §201(c), 84 Stat. 154; Dec. 31, 1970, Pub. L. 91–606, title III, §301(e), 84 Stat. 1759; 1973 Reorg. Plan No. I, §§1, 3(a)(1), eff. July 1, 1973, 38 F.R. 9579, 87 Stat. 1089; Dec. 10, 1973, Ex. Ord. No. 11749, §2(2), 38 F.R. 34177; May 22, 1974, Pub. L. 93–288, title VII, §702(e), formerly title VI, §602(e), 88 Stat. 163, renumbered title VII, §702(e), Oct. 5, 1994, Pub. L. 103–337, div. C, title XXXIV, §3411(a)(1), (2), 108 Stat. 3100; Aug. 21, 1974, Pub. L. 93–380, title III, §§303(a)(3), 305(a)(3), 88 Stat. 522, 532; Apr. 21, 1976, Pub. L. 94–273, §3(5), 90 Stat. 376; Nov. 1, 1978, Pub. L. 95–561, title X, §1010(a), 92 Stat. 2310; July 20, 1979, Ex. Ord. No. 12148, §4–106, 44 F.R. 43239; Aug. 6, 1979, Pub. L. 96–46, §3(a), 93 Stat. 342; Oct. 17, 1979, Pub. L. 96–88, title III, §301(b)(2), title V, §507, 93 Stat. 679, 692; Oct. 19, 1984, Pub. L. 98–511, title III, §301(a)(1), 98 Stat. 2388; Apr. 28, 1988, Pub. L. 100–297, title II, §§2011(a)(1), (b), 2012(a), 2017, 102 Stat. 294, 299; Nov. 23, 1988, Pub. L. 100–707, title I, §109(i), 102 Stat. 4709, related to assistance for current school expenditures in cases of certain disasters.
Repeal effective Oct. 1, 1994, see section 3(a)(3)(B) of Pub. L. 103–382, set out as a note under section 236 of this title.
Section 241a, act Sept. 30, 1950, ch. 1124, title II, §101, formerly §201, as added Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 27, renumbered and amended Jan. 2, 1968, Pub. L. 90–247, title I, §§108(a)(2), 110, 81 Stat. 786, 787; Apr. 13, 1970, Pub. L. 91–230, title I, §113(b)(2), 84 Stat. 126, set out the Congressional declaration of policy with regard to the program of assistance to local educational agencies for the education of children of low-income families.
Section 241b, act Sept. 30, 1950, ch. 1124, title II, §102, formerly §202, as added Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 27, amended Nov. 3, 1966, Pub. L. 89–750, title I, §101, 80 Stat. 1191, and renumbered and amended Jan. 2, 1968, Pub. L. 90–247, title I, §§108(a)(2), 110, title III, §301(a), 81 Stat. 786, 787, 813; Apr. 13, 1970, Pub. L. 91–230, title I, §§101(a), 113(b)(3), 84 Stat. 121, 126; Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(1), 88 Stat. 488; Apr. 21, 1976, Pub. L. 94–273, §2(12), 90 Stat. 375; Sept. 24, 1977, Pub. L. 95–112, §2(a)(1), 91 Stat. 911, set out the duration of the period during which the Commissioner could make payments for grants made on the basis of entitlements under this subchapter.
Repeal effective Oct. 1, 1978, see section 1530(a) of Pub. L. 95–561, set out as an Effective Date of 1978 Amendment note under section 1221e–3 of this title.
Section, Pub. L. 93–380, title I, §101(a)(10), Aug. 21, 1974, 88 Stat. 501, which authorized appropriations for assistance to local educational agencies whose total basic grants allotment was 90 percent or less than the allotment during the preceding year, was transferred to section 2713 of this title and subsequently omitted from the Code.
Section, act Sept. 30, 1950, ch. 1124, title II, §103, formerly §203, as added Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 28, amended July 21, 1965, Pub. L. 89–77, §3, 79 Stat. 243; Nov. 1, 1965, Pub. L. 89–313, §6(a), 79 Stat. 1161; Nov. 3, 1966, Pub. L. 89–750, title I, §§102, 103(a), 104, 105(a), (b)(1), (2), (c), 106, 107, 108(b)(1), 113(b), 117(a)(2), (3), 80 Stat. 1191–1195, 1197, 1198, and renumbered and amended Jan. 2, 1968, Pub. L. 90–247, title I, §§101, 103(a), 104(a), (b), 105, 107(a), 108(a)(2), 110, 81 Stat. 783–787; Oct. 16, 1968, Pub. L. 90–576, title III, §307, 82 Stat. 1097; Apr. 13, 1970, Pub. L. 91–230, title I, §§101(b), 103, 104(a), 105(a), (b), 106, 107, 113(a), 84 Stat. 121–124, 126; June 23, 1972, Pub. L. 92–318, title IV, §411(b)(1), (2), title V, §508, 86 Stat. 338, 352; Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(2)(A)(i)(II), (ii), (B)–(D), 88 Stat. 488, 490, 491; Apr. 21, 1976, Pub. L. 94–273, §49(a)–(c), 90 Stat. 382, authorized grants to local educational agencies.
Repeal effective Oct. 1, 1978, see section 1530(a) of Pub. L. 95–561, set out as an Effective Date of 1978 Amendment note under section 1221e–3 of this title.
Section 241c–1, act Sept. 30, 1950, ch. 1124, title II, §121, as added Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(2)(E), 88 Stat. 491, provided for programs for handicapped children.
Another section 121 of act Sept. 30, 1950, as added by Pub. L. 91–230, title I, §113(b)(6), Apr. 13, 1970, 84 Stat. 126, and renumbered section “126” by Pub. L. 93–380, was classified to section 241d of this title.
Section 241c–2, act Sept. 30, 1950, title II, §122, as added Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(2)(E), 88 Stat. 492, provided for programs for migratory children.
Another section 122 of act Sept. 30, 1950, as added by Pub. L. 91–230, title I, §113(b)(6), Apr. 13, 1970, 84 Stat. 126, and renumbered section “127” by Pub. L. 93–380, was classified to section 241d–1 of this title.
Section 241c–3, act Sept. 30, 1950, ch. 1124, title II, §123, as added Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(2)(E), 88 Stat. 494, provided for programs for neglected or delinquent children.
Another section 123 of act Sept. 30, 1950, as added by Pub. L. 91–230, title I, §113(b)(6), Apr. 13, 1970, 84 Stat. 127, and renumbered section “128” by Pub. L. 93–380, was classified to section 241d–2 of this title.
Section 241c–4, act Sept. 30, 1950, ch. 1124, title II, §124, as added Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(2)(E), 88 Stat. 494, provided for the reservation of funds for territories.
Section 241c–5, act Sept. 30, 1950, ch. 1124, title II, §125, as added Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(2)(E), 88 Stat. 495, and amended Apr. 21, 1976, Pub. L. 94–273, §3(8), 90 Stat. 376; Oct. 12, 1976, Pub. L. 94–482, title V, §501(b)(1)(A), (o), 90 Stat. 2236, 2238; Sept. 24, 1977, Pub. L. 95–112, §2(a)(1), 91 Stat. 911, related to minimum payments for State operated programs.
Repeal effective Oct. 1, 1978, see section 1530(a) of Pub. L. 95–561, set out as an Effective Date of 1978 Amendment note under section 1221e–3 of this title.
Section 241d, act Sept. 30, 1950, ch. 1124, title II, §126, formerly §121, as added Apr. 13, 1970, Pub. L. 91–230, title I, §113(b)(6), 84 Stat. 126, renumbered Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(3), 88 Stat. 495, and amended Oct. 12, 1976, Pub. L. 94–482, title V, §501(b)(1)(B), 90 Stat. 2236, related to maximum entitlement for special incentive grants.
A prior section 241d, act Sept. 30, 1950, ch. 1124, title I, §104, formerly §204, as added by Pub. L. 89–10, title I, §2, Apr. 11, 1965, 79 Stat. 30, and renumbered by Pub. L. 90–247, title I, §110, Jan. 2, 1968, 81 Stat. 787, making provision for special incentive grants to local educational agencies, was repealed by Pub. L. 89–750, title I, §108(a), Nov. 3, 1966, 80 Stat. 1195. Such repeal, pursuant to section 191 of Pub. L. 89–750, was effective with respect to fiscal years beginning after June 30, 1966.
Provisions (for amount and distribution of special incentive grants) similar to those comprising this section, as added by Pub. L. 91–230, were contained in act Sept. 30, 1950, ch. 1124, title I, §121(a), formerly title II, §221(a), as added and renumbered Jan. 2, 1968, Pub. L. 90–247, title I, §§108(a)(5), 110, 81 Stat. 786, 787 (classified to section 241h–1(a) of this title), prior to repeal thereof by Pub. L. 91–230, §113(b)(6).
Section 241d–1, act Sept. 30, 1950, ch. 1124, title II, §127, formerly §122, as added Apr. 13, 1970, Pub. L. 91–230, title I, §113(b)(6), 84 Stat. 126, renumbered Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(3), 88 Stat. 495, and amended Oct. 12, 1976, Pub. L. 94–482, title V, §501(a)(1), 90 Stat. 2235, related to application made for special incentive grants by States.
Provisions (for application and information therein) similar to those comprising part of this section were contained in act Sept. 30, 1950, ch. 1124, title I, §121(b), formerly title II, §221(b), as added and renumbered Jan. 2, 1968, Pub. L. 90–247, title I, §§108(a)(5), 110, 81 Stat. 786, 787 (formerly classified to former section 241h–1(b) of this title), prior to repeal thereof by Pub. L. 91–230, §113(b)(6).
Section 241d–2, act Sept. 30, 1950, ch. 1124, title II, §128, formerly §123, as added Apr. 13, 1970, Pub. L. 91–230, title I, §113(b)(6), 84 Stat. 127, renumbered Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(3), 88 Stat. 495, and amended Oct. 12, 1976, Pub. L. 94–482, title V, §501(a)(1), 90 Stat. 2235, defined “effort index”.
Provisions (defining “State effort index” and “national effort index”) similar to those comprising this section were contained in act Sept. 30, 1950, ch. 1124, title I, §121(c), formerly title II, §221(c), as added and renumbered Jan. 2, 1968, Pub. L. 90–247, title I, §§108(a)(5), 110, 81 Stat. 786, 787 (formerly classified to former section 241h–1(c) of this title), prior to repeal thereof by Pub. L. 91–230, §113(b)(6).
Repeal effective Oct. 1, 1978, see section 1530(a) of Pub. L. 95–561, set out as an Effective Date of 1978 Amendment note under section 1221e–3 of this title.
Section, act Sept. 30, 1950, ch. 1124, title II, §131, as added Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(4)(A), 88 Stat. 495, related to eligibility for and maximum amount of special grants.
A prior section 241d–11, act Sept. 30, 1950, ch. 1124, title II, §131, as added Apr. 13, 1970, Pub. L. 91–230, title I, §113(b)(6), 84 Stat. 127, which also related to eligibility and maximum amount of special grants for urban and rural schools serving areas with the highest concentrations of children from low-income families, was repealed by Pub. L. 93–380, title I, §101(a)(4)(B), Aug. 21, 1974, 88 Stat. 496, effective July 1, 1975.
Repeal effective Oct. 1, 1978, see section 1530(a) of Pub. L. 95–561, set out as an Effective Date of 1978 Amendment note under section 1221e–3 of this title.
Section, act Sept. 30, 1950, ch. 1124, title II, §132, as added Apr. 13, 1970, Pub. L. 91–230, title I, §113(b)(6), 84 Stat. 128, related to uses of funds for such special grants.
Repeal effective July 1, 1975, pursuant to Pub. L. 93–380, §101(a)(4)(B).
Section 241e, act Sept. 30, 1950, ch. 1124, title II, §141, formerly §205, as added Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 30, amended Nov. 3, 1966, Pub. L. 89–750, title I, §§103(b), 108(b)(1), (2), 110, 111(a)–(e), 80 Stat. 1192, 1195, 1196, renumbered title I, §105 and amended Jan. 2, 1968, Pub. L. 90–247, title I, §§103(b), 106, 108(a)(2), 109, 110, 81 Stat. 783, 784, 786, 787, renumbered §141 and amended Apr. 13, 1970, Pub. L. 91–230, title I, §§108, 109(a), 110, 111(b), 113(b)(3), (4), (7), 84 Stat. 124–126, 128; June 23, 1972, Pub. L. 92–318, title V, §507(a), (b), 86 Stat. 352; Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(5), (9)(A), (B), 88 Stat. 496, 500; Oct. 12, 1976, Pub. L. 94–482, title V, §501(b)(1)(C), (D), 90 Stat. 2236, related to applications for grants by local agencies.
Section 241e–1, act Sept. 30, 1950, ch. 1124, title II, §141A, as added Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(6), 88 Stat. 497, related to participation of children enrolled in private schools.
Section 241f, act Sept. 30, 1950, ch. 1124, title II, §142, formerly §206, as added Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 31, amended Nov. 1, 1965, Pub. L. 89–313, §6(b), 79 Stat. 1162; Nov. 3, 1966, Pub. L. 89–750, title I, §103(c)(1), 80 Stat. 1193, renumbered §106, and amended Jan. 2, 1968, Pub. L. 90–247, title I, §§103(c), 108(a)(2), 110, 81 Stat. 783, 786, 787, and renumbered §142 and amended Apr. 13, 1970, Pub. L. 91–230, title I, §§111(a), 113(b)(3), (4), 84 Stat. 125, 126; Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(9)(D), (E), 88 Stat. 500, related to assurances required from States desiring to participate.
Section 241g, act Sept. 30, 1950, ch. 1124, title II, §143, formerly §207, as added Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 32, amended Nov. 1, 1965, Pub. L. 89–313, §7(a), 79 Stat. 1162; Nov. 3, 1966, Pub. L. 89–750, title I, §§103(c)(2), 108(b)(3), 112, 113(a), 80 Stat. 1193, 1195, 1197, renumbered §107 and amended Jan. 2, 1968, Pub. L. 90–247, title I, §§102, 103(c), 108(a)(2), 110, 81 Stat. 783, 786, 787 and renumbered §143 and amended Apr. 13, 1970, Pub. L. 91–230, title I, §§113(b)(3), (4), (8), 114, 84 Stat. 126, 129, 130; Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(9)(C), (F), (G), title VIII, §843(a)(1), 88 Stat. 500, 611; Oct. 12, 1976, Pub. L. 94–482, title III, §323(a)(1), 90 Stat. 2217, related to payment of funds.
Section 241h, act Sept. 30, 1950, ch. 1124, title II, §144, formerly §208, as added Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 33, amended Nov. 3, 1966, Pub. L. 89–750, title I, §114, 80 Stat. 1197, renumbered §108 and amended Jan. 2, 1968, Pub. L. 90–247, title I, §§107(b), 110, 81 Stat. 785, 787, renumbered §144 and amended Apr. 13, 1970, Pub. L. 91–230, title I, §113(b)(3), (4), (c), (d), 84 Stat. 126, 129; Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(7), (9)(H), 88 Stat. 498, 500, related to adjustments necessitated by appropriations.
Repeal effective Oct. 1, 1978, see section 1530(a) of Pub. L. 95–561, set out as an Effective Date of 1978 Amendment note under section 1221e–3 of this title.
Section 241h–1, act Sept. 30, 1950, ch. 1124, title II, §121, formerly §221, as added and renumbered Jan. 2, 1968, Pub. L. 90–247, §§108(a)(5), 110, 81 Stat. 786, 787, and amended Apr. 13, 1970, Pub. L. 91–230, title I, §101(c), 84 Stat. 121, related to special incentive grants and provided in: subsec. (a) for amount and distribution of such grants; subsec. (b) for application for grant and disapproval only after notice and opportunity for hearing; subsec. (c) definitions of “State effort index” and “national effort index”; and subsec. (d) authorization of appropriations of $50,000,000 for fiscal year ending June 30, 1969, and for each of the succeeding fiscal years ending prior to July 1, 1973.
Section 241i, act Sept. 30, 1950, ch. 1124, title II, §145, formerly §209, as added Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 33, renumbered §231 and further renumbered §131, Jan. 2, 1968, Pub. L. 90–247, title I, §§108(a)(4), 110, 81 Stat. 786, 787, and renumbered §145, Apr. 13, 1970, Pub. L. 91–230, title I, §113(b)(4), 84 Stat. 126, related to labor standards requirements (prevailing wage rates). See section 1232b of this title.
Section 241j, act Sept. 30, 1950, ch. 1124, title II, §146, formerly §210, as added Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 33, amended Nov. 3, 1966, Pub. L. 89–750, title I, §103(c)(3), 80 Stat. 1193, renumbered §232, amended and further renumbered §132, Jan. 2, 1968, Pub. L. 90–247, title I, §§108(a)(4), (b), 110, 81 Stat. 786, 787, and renumbered §146, and amended Apr. 13, 1970, Pub. L. 91–230, title I, §113(b)(4), (9), 84 Stat. 126, 129; Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(9)(I), 88 Stat. 501, related to withholding of funds for noncompliance with assurances.
Section 241k, act Sept. 30, 1950, ch. 1124, title II, §147, formerly §211, as added Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 33, amended Nov. 3, 1966, Pub. L. 89–750, title I, §103(c)(4), 80 Stat. 1193, renumbered §233, amended and further renumbered §133, Jan. 2, 1968, Pub. L. 90–247, title I, §§108(a)(4), (b), 110, 81 Stat. 786, 787, renumbered §147, and amended Apr. 13, 1970, Pub. L. 91–230, title I, §113(b)(4), (10), 84 Stat. 126, 129; Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(9)(J), 88 Stat. 501, related to judicial review.
Section 241l, act Sept. 30, 1950, ch. 1124, title II, §148, formerly §212, as added Apr. 11, 1965, Pub. L. 89–10, title I, §2, 79 Stat. 34, amended Nov. 3, 1966, Pub. L. 89–750, title I, §115, 80 Stat. 1197, renumbered §234, amended and further renumbered §134, Jan. 2, 1968, Pub. L. 90–247, title I, §§108(a)(4), 110, 114, 81 Stat. 786–788, and renumbered §148, and amended Apr. 13, 1970, Pub. L. 91–230, title I, §§112, 113(b)(4), 84 Stat. 125, 126; Aug. 21, 1974, Pub. L. 93–380, title VIII, §845(a), 88 Stat. 612; Apr. 21, 1976, Pub. L. 94–273, §3(8), 90 Stat. 376; Sept. 24, 1977, Pub. L. 95–112, §2(a)(3), 91 Stat. 911, created National Advisory Council on the Education of Disadvantaged Children.
Section 241m, act Sept. 30, 1950, ch. 1124, title II, §149, formerly §213, as added Nov. 3, 1966, Pub. L. 89–750, title I, §109, 80 Stat. 1195, renumbered §235, and further renumbered §135, Jan. 2, 1968, Pub. L. 90–247, title I, §§108(a)(4), 110, 81 Stat. 786, 787, and renumbered §149, Apr. 13, 1970, Pub. L. 91–230, title I, §113(b)(4), 84 Stat. 126, related to treatment of earnings for purposes of aid to families with dependent children.
Section 241n, act Sept. 30, 1950, ch. 1124, title II, §150, as added Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(8), 88 Stat. 499, related to allocation of funds within school districts of local educational agencies.
Section 241o, act Sept. 30, 1950, ch. 1124, title II, §151, as added Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(8), 88 Stat. 499; amended Apr. 21, 1976, Pub. L. 94–273, §3(8), 90 Stat. 376; Oct. 12, 1976, Pub. L. 94–482, title V, §501(b)(1)(E), (p), 90 Stat. 2236, 2238, related to system of program evaluation.
Repeal effective Oct. 1, 1978, see section 1530(a) of Pub. L. 95–561, set out as an Effective Date of 1978 Amendment note under section 1221e–3 of this title.
Section 241aa, act Sept. 30, 1950, ch. 1124, title III, §302, as added June 23, 1972, Pub. L. 92–318, title IV, §411(a), 86 Stat. 335; amended Nov. 1, 1978, Pub. L. 95–561, title XI, §1142(a), 92 Stat. 2329; Oct. 19, 1984, Pub. L. 98–511, title V, §513(a)(8), 98 Stat. 2400, related to Congressional declaration of policy.
Section 241bb, act Sept. 30, 1950, ch. 1124, title III, §303, as added June 23, 1972, Pub. L. 92–318, title IV, §411(a), 86 Stat. 335; amended Aug. 21, 1974, Pub. L. 93–380, title VI, §§631(b), 632(b), 88 Stat. 585, 586; Apr. 21, 1976, Pub. L. 94–273, §3(5), 90 Stat. 376; Nov. 1, 1978, Pub. L. 95–561, title XI, §§1141(b), 1143, 92 Stat. 2328, 2329; Oct. 19, 1984, Pub. L. 98–511, title V, §513(a)(1)–(3), (8), 98 Stat. 2399, 2400, related to grants to local educational agencies.
Repeal effective July 1, 1988, see section 6303 of Pub. L. 100–297, set out as an Effective Date of 1988 Amendment note under section 1071 of this title.
Section, Pub. L. 95–561, title XI, §1146, Nov. 1, 1978, 92 Stat. 2330, deemed certain tribal schools to be local educational agencies for purposes of section 241bb(a) of this title.
Section 241cc, act Sept. 30, 1950, ch. 1124, title III, §304, as added June 23, 1972, Pub. L. 92–318, title IV, §411(a), 86 Stat. 335; amended Nov. 1, 1978, Pub. L. 95–561, title XI, §1142(b), 92 Stat. 2329; Oct. 19, 1984, Pub. L. 98–511, title V, §513(a)(8), 98 Stat. 2400; Oct. 27, 1986, Pub. L. 99–570, title IV, §4133(b)(1), 100 Stat. 3207–133, set forth uses of Federal funds.
Section 241dd, act Sept. 30, 1950, ch. 1124, title III, §305, as added June 23, 1972, Pub. L. 92–318, title IV, §411(a), 86 Stat. 336; amended Nov. 1, 1978, Pub. L. 95–561, title XI, §1144, 92 Stat. 2329; Oct. 19, 1984, Pub. L. 98–511, title V, §513(a)(4), (8), 98 Stat. 2399, 2400, related to conditions for approval of grants.
Section 241ee, act Sept. 30, 1950, ch. 1124, title III, §306, as added June 23, 1972, Pub. L. 92–318, title IV, §411(a), 86 Stat. 337; amended Nov. 1, 1978, Pub. L. 95–561, title XI, §1150(f), 92 Stat. 2333; Aug. 22, 1984, Pub. L. 98–396, title I, 98 Stat. 1390; Oct. 19, 1984, Pub. L. 98–511, title V, §513(a)(8), 98 Stat. 2400, related to payments to local educational agencies.
Section 241ff, act Sept. 30, 1950, ch. 1124, title III, §307, as added June 23, 1972, Pub. L. 92–318, title IV, §411(a), 86 Stat. 337; amended Nov. 1, 1978, Pub. L. 95–561, title XI, §1145, 92 Stat. 2330; Oct. 19, 1984, Pub. L. 98–511, title V, §513(a)(5), 98 Stat. 2399, related to authorization of appropriations and adjustments.
Repeal effective July 1, 1988, see section 6303 of Pub. L. 100–297, set out as an Effective Date of 1988 Amendment note under section 1071 of this title.
Section 242, acts Sept. 30, 1950, ch. 1124, title IV, §401, formerly §7, 64 Stat. 1107, renumbered title III, §301, Apr. 11, 1965, Pub. L. 89–10, title I, §3(c)(1), 79 Stat. 35; amended Nov. 3, 1966, Pub. L. 89–750, title II, §205, 80 Stat. 1212; Apr. 13, 1970, Pub. L. 91–230, title IV, §401(f)(1), 84 Stat. 173, and renumbered title IV, §401, June 23, 1972, Pub. L. 92–318, title IV, §411(a), 86 Stat. 334; Apr. 28, 1988, Pub. L. 100–297, title II, §2011(a)(1), 102 Stat. 294, related to supervision over schools.
Section 243, acts Sept. 30, 1950, ch. 1124, title IV, §402, formerly §8, 64 Stat. 1108; Aug. 8, 1953, ch. 402, §9, 67 Stat. 536; Aug. 4, 1955, ch. 543, ch. 11, §202, 69 Stat. 485; Aug. 12, 1955, ch. 868, §1, 69 Stat. 713; Aug. 3, 1956, ch. 915, title II, §210, 70 Stat. 972; Aug. 12, 1958, Pub. L. 85–620, title II, §204, 72 Stat. 560; renumbered title III, §302, and amended Apr. 11, 1965, Pub. L. 89–10, title I, §3(c), 79 Stat. 35; Apr. 13, 1970, Pub. L. 91–230, title IV, §401(c)(1), 84 Stat. 173; renumbered title IV, §402, June 23, 1972, Pub. L. 92–318, title IV, §411(a), 86 Stat. 334; Aug. 13, 1981, Pub. L. 97–35, title V, §505(c)(1), 95 Stat. 442; Apr. 28, 1988, Pub. L. 100–297, title II, §2011(a)(1), 102 Stat. 294, related to utilization of services and facilities of other Federal agencies.
Section 244, acts Sept. 30, 1950, ch. 1124, title IV, §403, formerly §9, 64 Stat. 1108; Aug. 8, 1953, ch. 402, §10, 67 Stat. 536; Aug. 1, 1956, ch. 852, §10, 70 Stat. 909; Aug. 3, 1956, ch. 915, title II, §211, 70 Stat. 972; Aug. 12, 1958, Pub. L. 85–620, title II, §205, 72 Stat. 560; June 25, 1959, Pub. L. 86–70, §18(d)(4), 73 Stat. 145; July 12, 1960, Pub. L. 86–624, §14(d)(4), 74 Stat. 414; Oct. 16, 1964, Pub. L. 88–665, title XI, §1102(b), 78 Stat. 1109, renumbered title III, §303, and amended Apr. 11, 1965, Pub. L. 89–10, title I, §§3(c)(1), 4(a)–(c), (d)(1), (e), 79 Stat. 35; Nov. 1, 1965, Pub. L. 89–313, §6(c), 79 Stat. 1162; Nov. 3, 1966, Pub. L. 89–750, title I, §117(a)(1), (b), title II, §206, 80 Stat. 1198, 1199, 1213; Jan. 2, 1968, Pub. L. 90–247, title II, §201, 81 Stat. 806; Apr. 13, 1970, Pub. L. 91–230, title II, §203(b), 84 Stat. 156; Aug. 12, 1970, Pub. L. 91–375, §§4(a), 6(o), 84 Stat. 773, 783; renumbered title IV, §403, June 23, 1972, Pub. L. 92–318, title IV, §411(a), 86 Stat. 334, and amended Aug. 21, 1974, Pub. L. 93–380, title I, §101(a)(9)(K), title III, §304(d)(1), 88 Stat. 501, 523; Apr. 21, 1976, Pub. L. 94–273, §49(d), 90 Stat. 382; Oct. 12, 1976, Pub. L. 94–482, title V, §501(n), 90 Stat. 2237; Nov. 1, 1978, Pub. L. 95–561, title I, §101(b), title X, §§1011–1014, 1031(a), 92 Stat. 2200, 2310–2312; Apr. 28, 1988, Pub. L. 100–297, title II, §§2011(a)(1), (3), 2021, 102 Stat. 294, 300; May 30, 1990, Pub. L. 101–305, §3(f), 104 Stat. 257; Oct. 30, 1990, Pub. L. 101–476, title IX, §901(a)(3), (f)(2), 104 Stat. 1142, 1151, defined terms for purposes of this chapter. See section 7713 of this title.
Repeal effective Oct. 1, 1994, see section 3(a)(3)(B) of Pub. L. 103–382, set out as a note under section 236 of this title.
Section, act July 16, 1940, ch. 629, 54 Stat. 761, which related to school facilities for children of Government employees and other residents in Indian reservations, national parks, and national monuments, was transferred to section 7713a of this title.
Section, act Sept. 30, 1950, ch. 1124, §10, as added Aug. 8, 1953, ch. 402, §11, 67 Stat. 536; amended Aug. 12, 1955, ch. 868, §1, 69 Stat. 713; Aug. 3, 1956, ch. 915, title II, §212, 70 Stat. 972, related to election by States to receive payments with respect to education of Indian children.
Section 207 of Pub. L. 85–620 provided that: “The amendments made by this title [amending sections 237, 238, 239, 243, 244 of this title and repealing this section] shall be effective for the period beginning July 1, 1958.”
Section, Pub. L. 93–380, title VIII, §842, Aug. 21, 1974, 88 Stat. 610; Pub. L. 94–482, title III, §326, Oct. 12, 1976, 90 Stat. 2220; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to development and submission of State equalization plans by not later than Oct. 1, 1978.
The act of Sept. 23, 1950, ch. 995, 64 Stat. 967, as amended by acts Aug. 8, 1953, ch. 400, §§1, 2, 67 Stat. 522, 528; Aug. 2, 1954, ch. 649, title VIII, §808(a), 68 Stat. 645; Aug. 31, 1954, ch. 1149, §§1–7, 68 Stat. 1005, 1006; Aug. 12, 1955, ch. 868, §§4–7, 69 Stat. 713–715; Aug. 1, 1956, ch. 852, §11, 70 Stat. 909; Aug. 3, 1956, ch. 915, title I, §§101–109, 70 Stat. 968, 969; Aug. 21, 1957, Pub. L. 85–161, 71 Stat. 403; Sept. 2, 1957, Pub. L. 85–267, §§1–8, 71 Stat. 593, 594; Aug. 28, 1958, Pub. L. 85–791, §32, 72 Stat. 951, formerly classified to this chapter, was completely amended and renumbered by Pub. L. 85–620, Aug. 12, 1958, 72 Stat. 548, and reclassified to chapter 19 (§631 et seq.) of this title, and was subsequently repealed by Pub. L. 103–382, title III, §331(a), Oct. 20, 1994, 108 Stat. 3965.
Sections 251 to 254, act Sept. 23, 1950, ch. 995, title I, §§101 to 104, 64 Stat. 967, 968, authorized appropriations, provided for State applications for funds, allotments and payments to States, and to withholding of certification.
Section 255, acts Sept. 23, 1950, ch. 995, title I, §105, 64 Stat. 969; Aug. 8, 1953, ch. 400, §2(m), 67 Stat. 529, related to delegation of functions and payment of expenses.
Section 271, act Sept. 23, 1950, ch. 995, title II, §201, 64 Stat. 969, contained declaration of policy for school construction in federally-affected areas.
Section 272, acts Sept. 23, 1950, ch. 995, title II, §202, 64 Stat. 969; Aug. 2, 1954, ch. 649, title VIII, §808(a), 68 Stat. 645, authorized payments to local education agencies.
Section 273, acts Sept. 23, 1950, ch. 995, title II, §203, 64 Stat. 971; Aug. 12, 1955, ch. 868, §4, 69 Stat. 713, related to payments where effect of Federal activities, would be temporary, and for donation of temporary school activities.
Section 274, act Sept. 23, 1950, ch. 995, title II, §204, 64 Stat. 972, related to children for whom local agencies cannot provide education.
Section 275, acts Sept. 23, 1950, ch. 995, title II, §205, 64 Stat. 972; Aug. 8, 1953, ch. 400, §2(a), 67 Stat. 528, related to applications for assistance, construction projects, and reimbursement.
Section 276, act Sept. 23, 1950, ch. 995, title II, §206, 64 Stat. 973, provided for certification and payment of funds.
Section 277, acts Sept. 23, 1950, ch. 995, title II, §207, 64 Stat. 974; Aug. 8, 1953, ch. 400, §2(b), 67 Stat. 528; Aug. 28, 1958, Pub. L. 85–791, §32, 72 Stat. 951, related to withholding of certification and judicial review.
Section 278, act Sept. 23, 1950, ch. 995, title II, §208, 64 Stat. 975, provided for administration of act Sept. 23, 1950.
Section 279, acts Sept. 23, 1950, ch. 995, title II, §209, 64 Stat. 975; Aug. 8, 1953, ch. 400, §2(c)–(f), 67 Stat. 528; Aug. 31, 1954, ch. 1149, §7, 68 Stat. 1005; Aug. 3, 1956, ch. 915, title I, §101, 70 Stat. 968; Sept. 2, 1957, Pub. L. 85–267, §1, 71 Stat. 593, related to use of other Federal agencies; transfer and availability of appropriations, and additional grants for non-Federal share.
Section 280, acts Sept. 23, 1950, ch. 995, title II, §210, 64 Stat. 976; Aug. 8, 1953, ch. 400, §2(g)–(l), 67 Stat. 528; Aug. 1, 1956, ch. 852, §11, 70 Stat. 909; Aug. 3, 1956, ch. 915, title I, §102, 70 Stat. 968; Aug. 21, 1957, Pub. L. 85–161, 71 Stat. 403, contained definitions of terms used in act Sept. 23, 1950.
Section 291, act Sept. 23, 1950, ch. 995, title III, §301, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 522; amended Aug. 31, 1954, ch. 1149, §1, 68 Stat. 1005; Aug. 3, 1956, ch. 915, title I, §103, 70 Stat. 968; Sept. 2, 1957, Pub. L. 85–267, §2, 71 Stat. 593, stated purpose of former sections 291 to 302 of this title and authorized appropriations.
Section 292, act Sept. 23, 1950, ch. 995, title III, §302, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 522, provided for annual apportionment of funds.
Section 293, act Sept. 23, 1950, ch. 995, title III, §303, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 522; amended Aug. 31, 1954, ch. 1149, §2, 68 Stat. 1005; Aug. 3, 1956, ch. 915, title I, §104, 70 Stat. 968; Sept. 2, 1957, Pub. L. 85–267, §3, 71 Stat. 593, related to dates for filing applications, and to priorities.
Section 294, act Sept. 23, 1950, ch. 995, title III, §304, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 522; amended Aug. 31, 1954, ch. 1149, §3, 68 Stat. 1005; Aug. 12, 1955, ch. 868, §5, 69 Stat. 714; Aug. 3, 1956, ch. 915, title I, §105, 70 Stat. 968; Sept. 2, 1957, Pub. L. 85–267, §4, 71 Stat. 593, related to Federal share of cost of projects.
Section 295, act Sept. 23, 1950, ch. 995, title III, §305, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 523; amended Aug. 31, 1954, ch. 1149, §§4, 5, 68 Stat. 1005; Aug. 3, 1956, ch. 915, title I, §106, 70 Stat. 968; Sept. 2, 1957, Pub. L. 85–267, §5, 71 Stat. 593, prescribed limitations on total payments to local agencies.
Section 296, act Sept. 23, 1950, ch. 995, title III, §306, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 524; amended Aug. 3, 1956, ch. 915, title I, §107, 70 Stat. 969, related to filing and approval of application for assistance.
Section 297, act Sept. 23, 1950, ch. 995, title III, §307, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 525, related to payments to local agencies.
Section 298, act Sept. 23, 1950, ch. 995, title III, §308, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 525; amended Aug. 12, 1955, ch. 868, §7, 69 Stat. 715, related to availability of appropriations, special fund for additional grants, and to payments in cases affected by change in regulations.
Section 299, act Sept. 23, 1950, ch. 995, title III, §309, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 525; amended Aug. 12, 1955, ch. 868, §4, 69 Stat. 713, prescribed procedure in cases of temporary Federal activities, and authorized donation of temporary school facilities.
Section 300, act Sept. 23, 1950, ch. 995, title III, §310, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 526; amended Aug. 31, 1954, ch. 1149, §6, 68 Stat. 1005; Aug. 3, 1956, ch. 915, title I, §108, 70 Stat. 969; Sept. 2, 1957, Pub. L. 85–267, §6, 71 Stat. 593, provided for children for whom local agencies are unable to provide education.
Section 301, act Sept. 23, 1950, ch. 995, title III, §311, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 526, authorized withholding of payments for noncompliance.
Section 302, act Sept. 23, 1950, ch. 995, title III, §312, as added Sept. 2, 1957, Pub. L. 85–267, §7, 71 Stat. 593, defined base year and increase period.
Section 311, act Sept. 23, 1950, ch. 995, title IV, §401, as added Aug. 8, 1953, ch. 400, §1, 67 Stat. 526; amended Aug. 12, 1955, ch. 868, §6, 69 Stat. 715; Aug. 3, 1956, ch. 915, title I, §109, 70 Stat. 969; Sept. 2, 1957, Pub. L. 85–267, §8, 71 Stat. 594, authorized assistance in other federally-affected areas.
Sections constituted the Cooperative Research Act and terminated on and after July 1, 1975, under provisions of section 402(c)(1) of Pub. L. 93–380. See provisions of Special Projects Act, section 1851 et seq. of this title.
Section 331, acts July 26, 1954, ch. 576, §1, 68 Stat. 533; Apr. 11, 1965, Pub. L. 89–10, title IV, §401, 79 Stat. 44, related to Congressional declaration of purpose.
Section 331a, act July 26, 1954, ch. 576, §2, as added Apr. 11, 1965, Pub. L. 89–10, title IV, §401, 79 Stat. 44; amended Nov. 3, 1966, Pub. L. 89–750, title I, §141, 80 Stat. 1202; Jan. 2, 1968, Pub. L. 90–247, title VII, §706, 81 Stat. 820; Apr. 13, 1970, Pub. L. 91–230, title I, §143(c), title VIII, §§808, 809(c), 84 Stat. 151, 193, 194; June 23, 1972, Pub. L. 92–318, title III, §303(a)(1), 86 Stat. 333, authorized grants, contracts, and jointly financed arrangements for exemplary projects and management studies, provided for an annual report to Congress, and provided for establishment of an Advisory Council on Research and development, its membership, and appointment of a Chairman.
Section 332, act July 26, 1954, ch. 576, §3, formerly §2, 68 Stat. 533, renumbered and amended Apr. 11, 1965, Pub. L. 89–10, title IV, §§401, 402, 79 Stat. 44, 46; June 23, 1972, Pub. L. 92–318, title III, §303(a)(2), 86 Stat. 333, authorized appropriations for fiscal years ending June 30, 1973, 1974, and 1975 of $58,000,000; $68,000,000; and $78,000,000 respectively.
Section 332a, act July 26, 1954, ch. 576, §4, as added Apr. 11, 1965, Pub. L. 89–10, title IV, §403, 79 Stat. 46; amended Nov. 3, 1966, Pub. L. 89–750, title I, §142, 80 Stat. 1203; Apr. 13, 1970, Pub. L. 91–230, title IV, §401(g)(2), title VIII, §810, 84 Stat. 174, 194, related to construction of regional facilities, authorizing appropriation of $100,000,000 in the aggregate for fiscal years ending June 30, 1966, through 1970, in subsec. (a); subsec. (b) relating to findings of Commissioner, grants for construction, transfer of title, and operation of facility; subsec. (c), as originally enacted, relating to labor standards; subsec. (d) relating to methods of payment, and subsec. (e) defining “research and related purposes”.
Section 332b, act July 26, 1954, ch. 576, §5, as added Apr. 11, 1965, Pub. L. 89–10, title IV, §403, 79 Stat. 47; amended Nov. 3, 1966, Pub. L. 89–750, title I, §143, 80 Stat. 1203, provided for definitions of “State”, “State educational agency”, “nonprofit”, and “construction” and “cost of construction”.
Section 333, act July 26, 1954, ch. 577, §1, 68 Stat. 533, provided for establishment of a National Advisory Committee on Education in the Department of Health, Education, and Welfare.
Section 334, act July 26, 1954, ch. 577, §2, 68 Stat. 533, provided for composition of the National Advisory Committee on Education, term of office, and ex officio membership of the Commissioner of Education.
Section 335, act July 26, 1954, ch. 577, §3, 68 Stat. 534, required minimum of three meetings each calendar year.
Section 336, act July 26, 1954, ch. 577, §4, 68 Stat. 534, authorized National Advisory Committee to make recommendations, appoint consultants, and submit an annual report to Congress.
Section 337, act July 26, 1954, ch. 577, §5, 68 Stat. 534, authorized travel expenses and per diem payments but denied compensation to members of the National Advisory Committee.
Sections 333 to 337 were generally superseded by provisions of section 868 of this title providing for a National Council on Quality in Education.
Section 351, acts June 19, 1956, ch. 407, §2, 70 Stat. 293; Feb. 11, 1964, Pub. L. 88–269, §1(a)(1), 78 Stat. 11; July 19, 1966, Pub. L. 89–511, §2, 80 Stat. 313; Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1660; Oct. 7, 1977, Pub. L. 95–123, §4(a), 91 Stat. 1095; Oct. 17, 1984, Pub. L. 98–480, title I, §102, 98 Stat. 2236, related to congressional declaration of policy.
Section 351a, act June 19, 1956, ch. 407, §3, as added Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1660; amended Oct. 19, 1973, Pub. L. 93–133, §4(a), 87 Stat. 466; Oct. 7, 1977, Pub. L. 95–123, §4(b), 91 Stat. 1095; Oct. 17, 1984, Pub. L. 98–480, title I, §103(a), (b)(1), 98 Stat. 2237; Nov. 22, 1985, Pub. L. 99–159, title III, §301, 99 Stat. 902; Mar. 15, 1990, Pub. L. 101–254, §§2, 16(a), 23(b), 104 Stat. 101, 105, 113; July 25, 1991, Pub. L. 102–73, title VIII, §802(e)(1), 105 Stat. 361, provided definitions for this chapter.
Section 351b, act June 19, 1956, ch. 407, §4, as added Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1662; amended May 3, 1973, Pub. L. 93–29, title VIII, §801(b), 87 Stat. 58; Oct. 7, 1977, Pub. L. 95–123, §2, 91 Stat. 1095; Oct. 17, 1984, Pub. L. 98–480, title I, §§103(b)(1), 4, 98 Stat. 2237; Oct. 31, 1988, Pub. L. 100–569, title I, §101, 102 Stat. 2862; Mar. 15, 1990, Pub. L. 101–254, §3, 104 Stat. 101; Oct. 20, 1994, Pub. L. 103–382, title III, §375(a), 108 Stat. 3978, related to authorization and availability of appropriations and provided for transition to advance funding method of timing appropriation action.
Section 351c, act June 19, 1956, ch. 407, §5, as added Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1662; amended May 3, 1973, Pub. L. 93–29, title VIII, §801(c), 87 Stat. 58; Oct. 17, 1984, Pub. L. 98–480, title I, §§103(b)(1), 105, 98 Stat. 2237, 2238; Nov. 22, 1985, Pub. L. 99–159, title III, §302(a), 99 Stat. 902; Mar. 15, 1990, Pub. L. 101–254, §§4(a), 22(b), 104 Stat. 102, 107; July 25, 1991, Pub. L. 102–73, title VIII, §802(e)(2), 105 Stat. 361, related to allotments to States and Indian tribes.
Section 351d, act June 19, 1956, ch. 407, §6, as added Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1663; amended May 3, 1973, Pub. L. 93–29, title VIII, §801(c), 87 Stat. 59; Aug. 21, 1974, Pub. L. 93–380, title VIII, §841(b), 88 Stat. 609; Oct. 17, 1984, Pub. L. 98–480, title I, §§103(b), 106, 98 Stat. 2237, 2239; Nov. 22, 1985, Pub. L. 99–159, title III, §302(b), 99 Stat. 903; Mar. 15, 1990, Pub. L. 101–254, §§4(b)–6, 104 Stat. 102, 103, required States desiring to receive an allotment under this chapter to have basic State plan in effect, submit annual programs and long-range program, and establish State Advisory Council on Libraries, provided procedure and grounds for Secretary to terminate or limit payments to States, procedure for judicial review of Secretary's final actions, procedure for receipt of allotments and allocations by Indian tribes, and required Secretary to coordinate programs under this chapter.
Section 351e, act June 19, 1956, ch. 407, §7, as added Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1665; amended May 3, 1973, Pub. L. 93–29, title VIII, §801(d), 87 Stat. 59; Oct. 17, 1984, Pub. L. 98–480, title I, §§103(b)(1), 107, 98 Stat. 2237, 2239; Mar. 15, 1990, Pub. L. 101–254, §7(a), 104 Stat. 103; July 25, 1991, Pub. L. 102–73, title VIII, §802(e)(3), (4), 105 Stat. 361, 362, related to prerequisites for payments, calculation and promulgation of Federal share for each State, and payment to Indian tribes.
Section 351f, act June 19, 1956, ch. 407, §8, as added Oct. 7, 1977, Pub. L. 95–123, §3(a), 91 Stat. 1095; amended Oct. 17, 1984, Pub. L. 98–480, title I, §108, 98 Stat. 2240, permitted expenditure of funds received under subchapters I and II of this chapter for administrative costs in connection with programs and activities carried out under subchapters I, II, and III of this chapter.
Section 351g, act June 19, 1956, ch. 407, §9, as added Mar. 15, 1990, Pub. L. 101–254, §8(a), 104 Stat. 104, prohibited contracting out or transferring from Federal Government certain activities or functions of Department of Education Research Library.
Section 1 of act June 19, 1956, as amended by section 10(a) of Pub. L. 88–269, which provided that this chapter be cited as the “Library Services and Construction Act”, was repealed by Pub. L. 104–208, div. A, title I, §101(e) [title VII, §708(a)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
Section 352, acts June 19, 1956, ch. 407, title I, §101, formerly §3, 70 Stat. 293; Aug. 31, 1960, Pub. L. 86–679, §1, 74 Stat. 571; renumbered title I, §101, and amended Feb. 11, 1964, Pub. L. 88–269, §§1(a)(2), 2, 7(a), 78 Stat. 11–13; July 19, 1966, Pub. L. 89–511, §3, 80 Stat. 313; Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1666; Oct. 7, 1977, Pub. L. 95–123, §4(c), 91 Stat. 1096; Oct. 17, 1984, Pub. L. 98–480, title I, §§103(b)(1), 109, 98 Stat. 2237, 2240; Mar. 15, 1990, Pub. L. 101–254, §§9–12, 16(b), 24(2), 104 Stat. 104, 105, 113, authorized Secretary to make grants to States for public library services.
Section 353, acts June 19, 1956, ch. 407, title I, §102, formerly §4, 70 Stat. 293; Aug. 1, 1956, ch. 852, §25(a), 70 Stat. 911; Aug. 31, 1960, Pub. L. 86–679, §2, 74 Stat. 571; Sept. 25, 1962, Pub. L. 87–688, §5(a)(1), 76 Stat. 587; renumbered title I, §102, and amended Feb. 11, 1964, Pub. L. 88–269, §§1(b), 3, 7(a), 78 Stat. 11–13; July 19, 1966, Pub. L. 89–511, §§4, 12(a), 80 Stat. 313, 318; Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1667; Oct. 7, 1977, Pub. L. 95–123, §§3(b), 4(d), (e), 91 Stat. 1095, 1096; Oct. 17, 1984, Pub. L. 98–480, title I, §§103(b)(1), 110, 98 Stat. 2237, 2240; Nov. 22, 1985, Pub. L. 99–159, title III, §§303(b), 304, 99 Stat. 903; Mar. 15, 1990, Pub. L. 101–254, §§13, 14, 104 Stat. 105, enumerated uses of Federal funds and provided for reservation of State allotments.
Section 354, acts June 19, 1956, ch. 407, title I, §103, formerly §5, 70 Stat. 293; renumbered title I, §103, and amended Feb. 11, 1964, Pub. L. 88–269, §§1(c), 4, 7(a), 78 Stat. 11–13; Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1667; Oct. 7, 1977, Pub. L. 95–123, §§4(f), 5, 91 Stat. 1096, 1097; Oct. 17, 1984, Pub. L. 98–480, title I, §§103(b)(1), 111, 98 Stat. 2237, 2241; Mar. 15, 1990, Pub. L. 101–254, §§7(b), 15, 104 Stat. 103, 105, required States to submit annual program for library services with certain specific content requirements, limited reduction of funds to urban resource library, and provided for ratable reduction of required State expenditures.
A prior section 355, acts June 19, 1956, ch. 407, title I, §104, formerly §6, 70 Stat. 295; Aug. 1, 1956, ch. 852, §25(b), (c), 70 Stat. 911; Aug. 31, 1960, Pub. L. 86–679, §§3, 4, 74 Stat. 571; Sept. 25, 1962, Pub. L. 87–688, §5(a)(2), (3), 76 Stat. 587; renumbered and amended Feb. 11, 1964, Pub. L. 88–269, §§5, 6, 7(a), (c)–(e), 78 Stat. 12–14; July 19, 1966, Pub. L. 89–511, §§5, 8, 12(a), (b), 80 Stat. 313, 318, related to the conditions under which payments were to be made to States, the amount of such payments, and the determination and promulgation of the Federal share, and was omitted in the general amendment of this chapter by Pub. L. 91–600, §2(b), Dec. 30, 1970, 84 Stat. 1660, effective after June 30, 1971.
Section 355a, act June 19, 1956, ch. 407, title II, §201, as added Feb. 11, 1964, Pub. L. 88–269, §7(a), 78 Stat. 13; amended July 19, 1966, Pub. L. 89–511, §6, 80 Stat. 313; Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1668; Oct. 17, 1984, Pub. L. 98–480, title I, §103(b)(1), 98 Stat. 2237; Mar. 15, 1990, Pub. L. 101–254, §16(c)(2), (3), 104 Stat. 106, related to grants to States for public library construction and library and information technology enhancement.
Section 355b, act June 19, 1956, ch. 407, title II, §202, as added Feb. 11, 1964, Pub. L. 88–269, §7(a), 78 Stat. 13; amended July 19, 1966, Pub. L. 89–511, §§7, 12(a), 80 Stat. 313, 318; Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1668; Oct. 7, 1977, Pub. L. 95–123, §6, 91 Stat. 1097; Oct. 17, 1984, Pub. L. 98–480, title I, §112(a), (b)(1), 98 Stat. 2241; Mar. 15, 1990, Pub. L. 101–254, §16(c)(3), (4), 104 Stat. 106, related to Federal share of cost of construction and technology enhancement projects carried under State plans and recovery by United States of value of grant.
Section 355c, act June 19, 1956, ch. 407, title II, §203, as added Feb. 11, 1964, Pub. L. 88–269, §7(a), 78 Stat. 13; amended Apr. 13, 1970, Pub. L. 91–230, title IV, §401(g)(3), 84 Stat. 174; Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1668; Oct. 17, 1984, Pub. L. 98–480, title I, §103(b)(1), 98 Stat. 2237; Mar. 15, 1990, Pub. L. 101–254, §§16(c)(3), (5), 17, 104 Stat. 106, required submission of annual program for construction and technology enhancement of public libraries by any State desiring to receive grant from its allotment and specified contents of such program.
A prior section 355d, act June 19, 1956, ch. 407, title II, §204, as added Feb. 11, 1964, Pub. L. 88–269, §7(a), 78 Stat. 14; amended July 19, 1966, Pub. L. 89–511, §§5(b), (8), 80 Stat. 313, related to payment to States of Federal share and determination of amount of such payment, and was omitted in the general amendment of this chapter by Pub. L. 91–600, §2(b), Dec. 30, 1970, 84 Stat. 1660, effective after June 30, 1971.
Section 355e, act June 19, 1956, ch. 407, title III, §301, as added July 19, 1966, Pub. L. 89–511, §9, 80 Stat. 314; amended Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1668; Oct. 17, 1984, Pub. L. 98–480, title I, §§103(b)(1), 113(b), 98 Stat. 2237, 2242; Mar. 15, 1990, Pub. L. 101–254, §18(a), 104 Stat. 106, authorized Secretary to make grants to States for interlibrary cooperation and resource sharing.
Section 355e–1, act June 19, 1956, ch. 407, title III, §302, as added and amended July 19, 1966, Pub. L. 89–511, §§9, 12(a), 80 Stat. 314, 318; Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1669; Mar. 15, 1990, Pub. L. 101–254, §16(d), 104 Stat. 106, related to payment and amount of Federal share of cost of carrying out State plans submitted and approved under section 355e–2 of this title.
Section 355e–2, act June 19, 1956, ch. 407, title III, §303, as added July 19, 1966, Pub. L. 89–511, §9, 80 Stat. 314; amended Nov. 24, 1967, Pub. L. 90–154, §1, 81 Stat. 509; Dec. 30, 1970, Pub. L. 91–600, §2(b), 84 Stat. 1669; Oct. 17, 1984, Pub. L. 98–480, title I, §§103(b)(1), 113(c), 98 Stat. 2237, 2242, required submission of annual program for interlibrary cooperation by any State desiring to receive grant from its allotment and specified contents of such program.
Section 355e–3, act June 19, 1956, ch. 407, title III, §304, as added Oct. 17, 1984, Pub. L. 98–480, title I, §113(d), 98 Stat. 2242; amended Mar. 15, 1990, Pub. L. 101–254, §18, 104 Stat. 106, related to statewide resource sharing plans in State annual and long-term programs.
A prior section 355e–3, act June 19, 1956, ch. 407, title III, §304, as added July 19, 1966, Pub. L. 89–511, §9, 80 Stat. 314, set forth the criteria for approval by the Commissioner of State plans for interlibrary cooperation, prior to the general amendment of this chapter by Pub. L. 91–600, §2(b), Dec. 30, 1970, 84 Stat. 1660, effective after June 30, 1971.
Section 355e–4, act June 19, 1956, ch. 407, title III, §305, as added Mar. 15, 1990, Pub. L. 101–254, §19, 104 Stat. 106, related to statewide preservation cooperation plans in State annual and long-range programs, specified plan compliance requirements, authorized use of funds to carry out such plans, and granted State library administrative agency authority to contract part or all of preservation program under this section to other agencies or institutions.
Prior sections 355f to 358 were omitted in the general amendment of this chapter by Pub. L. 91–600, §2(b), Dec. 30, 1970, 84 Stat. 1660, effective after June 30, 1971.
Prior sections 355f to 355f–7 comprised former subchapter IV of this chapter relating to specialized State library services.
Prior sections 356 to 358 comprised former subchapter V of this chapter relating to the administration of this chapter.
Section 355f, act June 19, 1956, ch. 407, title IV, §401, as added July 19, 1966, Pub. L. 89–511, §9, 80 Stat. 315, authorized appropriations for State institutional library services.
Section 355f–1, act June 19, 1956, ch. 407, title IV, §402, as added and amended July 19, 1966, Pub. L. 89–511, §§9, 12(a), 80 Stat. 315, 318, set forth the amount of allotments authorized to be made by the Commissioner to States, Guam, etc.
Section 355f–2, act June 19, 1956, ch. 407, title IV, §403, as added July 19, 1966, Pub. L. 89–511, §9, 80 Stat. 315; amended Nov. 24, 1967, Pub. L. 90–154, §2, 81 Stat. 509, related to the payment to the States of the Federal share and the determination of the amount of such payment.
Section 355f–3, act June 19, 1956, ch. 407, title IV, §404, as added July 19, 1966, Pub. L. 89–511, §9, 80 Stat. 316; amended Nov. 24, 1967, Pub. L. 90–154, §3, 81 Stat. 509, set forth the criteria for approval by the Commissioner of State plans for institutional library services.
Section 355f–4, act June 19, 1956, ch. 407, title IV, §411, as added July 19, 1966, Pub. L. 89–511, §9, 80 Stat. 316, authorized appropriations for State library services to the physically handicapped.
Section 355f–5, act June 19, 1956, ch. 407, title IV, §412, as added and amended July 19, 1966, Pub. L. 89–511, §§9, 12(a), 80 Stat. 316, 318, set forth the amount of allotments authorized to be made by the Commissioner to States, Guam, etc.
Section 355f–6, act June 19, 1956, ch. 407, title IV, §413, as added July 19, 1966, Pub. L. 89–511, §9, 80 Stat. 317; amended Nov. 24, 1967, Pub. L. 90–154, §4, 81 Stat. 509, related to the payment to the States of the Federal share and the determination of the amount of such payment.
Section 355f–7, act June 19, 1956, ch. 407, title IV, §414, as added July 19, 1966, Pub. L. 89–511, §9, 80 Stat. 317; amended Nov. 24, 1967, Pub. L. 90–154, §5, 81 Stat. 509, set forth the criteria for approval by the Commissioner of State plans for library services to the physically handicapped.
Section 356, act June 19, 1956, ch. 407, title V, §501, formerly §7, 70 Stat. 295, renumbered §301 and amended Feb. 11, 1964, Pub. L. 88–269, §7(f), (g), 78 Stat. 14, renumbered §501, July 19, 1966, Pub. L. 89–511, §10(b), 80 Stat. 317, authorized the Commissioner to withhold payments to the States, enumerated the grounds for such withholding, and provided that notice and an opportunity for a hearing to be accorded to the appropriate State agency.
Section 357, act June 19, 1956, ch. 407, title V, §502, formerly §8, 70 Stat. 295, renumbered §302 and amended Feb. 11, 1964, Pub. L. 88–269, §§1(d), 7(f), 8, 78 Stat. 11, 14, 15, renumbered §502 and amended July 19, 1966, Pub. L. 89–511, §10(b), (c), (e), 80 Stat. 317, 318, set forth the administrative provisions of this chapter.
Section 357a, act June 19, 1956, ch. 407, title V, §503, formerly §303, as added Feb. 11, 1964, Pub. L. 88–269, §7(h), 78 Stat. 14, renumbered and amended July 19, 1966, Pub. L. 89–511, §10(b), 80 Stat. 317, provided for the reallotment of unused funds under conditions determined by the Commissioner.
Section 358, act June 19, 1956, ch. 407, title V, §504, formerly §9, 70 Stat. 296; Aug. 1, 1956, ch. 852, §25(d), 70 Stat. 911; Aug. 31, 1960, Pub. L. 86–679, §5, 74 Stat. 572; Sept. 25, 1962, Pub. L. 87–688, §5(a)(3), 76 Stat. 587, renumbered §304 and amended Feb. 11, 1964, Pub. L. 88–269, §§1(e), 7(b), (f), 9, 78 Stat. 11, 14, 16, renumbered §504, and amended July 19, 1966, Pub. L. 89–511, §§10(b), 12(a), 80 Stat. 317, 318; Nov. 24, 1967, Pub. L. 90–154, §6, 81 Stat. 509, defined the terms “State”, “State library administrative agency”, “public library”, “construction”, and “Secretary”.
Section 361, act June 19, 1956, ch. 407, title IV, §401, as added Oct. 17, 1984, Pub. L. 98–480, title I, §114, 98 Stat. 2243, related to congressional findings and purpose of this subchapter and authorization of grants.
A prior section 361, act June 19, 1956, ch. 407, title IV, §401, as added May 3, 1973, Pub. L. 93–29, title VIII, §801(a), 87 Stat. 57; amended Oct. 17, 1984, Pub. L. 98–480, title I, §103(b)(1), 98 Stat. 2237, related to grants to States for older readers services, prior to the general amendment of this subchapter by section 114 of Pub. L. 98–480.
Section 362, act June 19, 1956, ch. 407, title IV, §402, as added Oct. 17, 1984, Pub. L. 98–480, title I, §114, 98 Stat. 2243, specified permitted uses of funds, required maintenance of funding level for public library services, and provided that nothing in this chapter be construed to prohibit restricted collections of tribal cultural materials with funds made available under this chapter.
A prior section 362, act June 19, 1956, ch. 407, title IV, §402, as added May 3, 1973, Pub. L. 93–29, title VIII, §801(a), 87 Stat. 57, related to use of Federal funds and the amount of the Federal share for the cost of carrying out State plans for the provision of older readers’ services, prior to the general amendment of this subchapter by section 114 of Pub. L. 98–480.
Section 363, act June 19, 1956, ch. 407, title IV, §403, as added Oct. 17, 1984, Pub. L. 98–480, title I, §114, 98 Stat. 2244, related to applications for library services to Indians.
A prior section 363, act June 19, 1956, ch. 407, title IV, §403, as added May 3, 1973, Pub. L. 93–29, title VIII, §801(a), 87 Stat. 58; amended Oct. 17, 1984, Pub. L. 98–480, title I, §103(b)(1), 98 Stat. 2237, related to State annual programs for library services for the elderly, prior to the general amendment of this subchapter by section 114 of Pub. L. 98–480.
Section 364, act June 19, 1956, ch. 407, title IV, §404, as added Oct. 17, 1984, Pub. L. 98–480, title I, §114, 98 Stat. 2244, required submission of plans for library services, on or near Indian reservation, by Indian tribes desiring to receive special project grant.
A prior section 364, act June 19, 1956, ch. 407, title IV, §404, as added May 3, 1973, Pub. L. 93–29, title VIII, §801(a), 87 Stat. 58; amended Oct. 1, 1973, Pub. L. 93–113, title VI, §601(d), 87 Stat. 416; Oct. 17, 1984, Pub. L. 98–480, title I, §103(b)(1), 98 Stat. 2237, related to administrative coordination between programs for older readers services under this subchapter with other programs for older Americans, prior to the general amendment of this subchapter by section 114 of Pub. L. 98–480.
Section 365, act June 19, 1956, ch. 407, title IV, §405, as added Oct. 17, 1984, Pub. L. 98–480, title I, §114, 98 Stat. 2244, provided for coordination of programs under this subchapter with other programs for Indians.
Section 366, act June 19, 1956, ch. 407, title IV, §406, as added Nov. 22, 1985, Pub. L. 99–159, title III, §305, 99 Stat. 903, excluded Indian tribes and Indians in California, Oklahoma, and Alaska from provisions of this subchapter requiring that services be provided on or near Indian reservations, or to only those Indians who live on or near Indian reservations.
A prior subchapter IV of this chapter, comprising sections 355f to 355f–7 of this title, related to specialized State library services, prior to the general amendment of this chapter by Pub. L. 91–600, §2(b), Dec. 30, 1970, 84 Stat. 1660, effective after June 30, 1971.
Section, act June 19, 1956, ch. 407, title V, §501, as added Oct. 17, 1984, Pub. L. 98–480, title I, §115, 98 Stat. 2244; amended Mar. 15, 1990, Pub. L. 101–254, §20, 104 Stat. 107, related to grants for foreign language material acquisition.
A prior subchapter V of this chapter, comprising sections 356 to 358 of this title, related to administration of this chapter, prior to the general amendment of this chapter by Pub. L. 91–600, §2(b), Dec. 30, 1970, 84 Stat. 1660, effective after June 30, 1971.
Section, act June 19, 1956, ch. 407, title VI, §601, as added Oct. 17, 1984, Pub. L. 98–480, title I, §115, 98 Stat. 2245; amended Mar. 15, 1990, Pub. L. 101–254, §21, 104 Stat. 107; July 25, 1991, Pub. L. 102–73, title V, §502, 105 Stat. 356, related to State and local library grants.
Section, act June 19, 1956, ch. 407, title VII, §701, as added Mar. 15, 1990, Pub. L. 101–254, §22(a), 104 Stat. 107, authorized Secretary to carry out program for purpose of evaluating and assessing programs authorized under this chapter.
Section 385, act June 19, 1956, ch. 407, title VIII, §801, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 107, related to congressional statement of purpose of this part.
Section 385a, act June 19, 1956, ch. 407, title VIII, §802, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 108, related to grants for family learning centers.
Section 385b, act June 19, 1956, ch. 407, title VIII, §803, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 108, provided that funds made available under this part be used for initiation, expansion, and improvement of public library services, acquisition of resources and materials in print and electronic formats, and acquisition of computer hardware and software.
Section 385c, act June 19, 1956, ch. 407, title VIII, §804, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 108, related to application to Secretary by local public library wishing to receive grant under this part.
Section 385d, act June 19, 1956, ch. 407, title VIII, §805, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 109, provided for selection of family learning centers via competitive process, required equitable distribution of grants among States and between urban and rural communities under this subchapter, and established maximum amount per grant for any fiscal year.
Section 385e, act June 19, 1956, ch. 407, title VIII, §806, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 109; amended Oct. 20, 1994, Pub. L. 103–382, title III, §375(b), 108 Stat. 3979, authorized appropriations to carry out this part.
Section 386, act June 19, 1956, ch. 407, title VIII, §811, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 109, related to congressional statement of purpose of this part.
Section 386a, act June 19, 1956, ch. 407, title VIII, §812, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 110, related to grants to States for library literacy centers.
Section 386b, act June 19, 1956, ch. 407, title VIII, §813, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 110, required any State wishing to receive grant to submit to Secretary, through its State library administrative agency, application containing certain required information and assurances, and permitted Secretary to consider priority programs and services in approving such application.
Section 386c, act June 19, 1956, ch. 407, title VIII, §814, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 111, required library literacy centers to use funds made available under this part to initiate, expand, and improve literacy services and programs, and provided that no more than 25 percent of grant be used by each center to acquire literacy education computers and computer software.
Section 386d, act June 19, 1956, ch. 407, title VIII, §815, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 111, required any local public library desiring to participate in programs and services conducted pursuant to this part to submit application to State or library literacy center, as selected by State under section 386f of this title, and listed requisite content of such application.
Section 386e, act June 19, 1956, ch. 407, title VIII, §816, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 112, related to State advisory committees to assist in coordinating services and programs assisted under this part.
Section 386f, act June 19, 1956, ch. 407, title VIII, §817, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 112, related to selection of literacy learning centers.
Section 386g, act June 19, 1956, ch. 407, title VIII, §818, as added Mar. 15, 1990, Pub. L. 101–254, §23(a), 104 Stat. 113; amended Oct. 20, 1994, Pub. L. 103–382, title III, §375(c), 108 Stat. 3979, related to authorization of appropriations for this part.
The programs provided for in this chapter have not been funded for a number of years. See Codification notes set out under sections 421, 441, 451, 461, 481, 541, and 591 of this title.
Section, Pub. L. 85–864, title I, §101, Sept. 2, 1958, 72 Stat. 1581; Pub. L. 88–665, title I, §101, Oct. 16, 1964, 78 Stat. 1100, provided findings and declaration of policy for National Defense Education Act of 1958.
Section, Pub. L. 85–864, title I, §102, Sept. 2, 1958, 72 Stat. 1582, prohibited Federal control of education (curriculum, program of instruction, administration, or personnel of any educational institution or school system. See section 1232a of this title.
Section, Pub. L. 85–864, title I, §103, Sept. 2, 1958, 72 Stat. 1582; Pub. L. 86–70, §18(a)(1), June 25, 1959, 73 Stat. 144; Pub. L. 86–624, §14(a)(1), July 12, 1960, 74 Stat. 413; Pub. L. 88–210, title II, §201, formerly §21, Dec. 18, 1963, 77 Stat. 415, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title I, §§102, 103, Oct. 16, 1964, 78 Stat. 1100; Pub. L. 89–329, title IV, §491, formerly §461, Nov. 8, 1965, 79 Stat. 1251, renumbered Pub. L. 90–575, title I, §141, Oct. 16, 1968, 82 Stat. 1030; Pub. L. 89–752, §16(b), Nov. 3, 1966, 80 Stat. 1245; Pub. L. 90–575, title I, §174(a), title III, §351(c), Oct. 16, 1968, 82 Stat. 1035, 1058; Pub. L. 92–318, title I, §137(b), June 23, 1972, 86 Stat. 272; Pub. L. 94–482, title V, §501(m)(1), Oct. 12, 1976, 90 Stat. 2237; Pub. L. 96–88, title III, §301(a)(1), (2)(F), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, defined terms “State”, “institution of higher education”, “Secretary”, “State educational agency”, “school-age population”, “elementary school”, “secondary school”, “public”, “nonprofit”, “local educational agency”, “school of nursing”, “collegiate school of nursing”, “associate degree school of nursing”, and “accredited”. See Codification note set out under section 401 of this title.
This subchapter has not been funded since fiscal year 1975.
Section 421, Pub. L. 85–864, title II, §201, Sept. 2, 1958, 72 Stat. 1583; Pub. L. 87–344, title II, §201(a), Oct. 3, 1961, 75 Stat. 759; Pub. L. 88–210, title II, §202(a), formerly §22(a), Dec. 18, 1963, 77 Stat. 415, renumbered Pub. L. 90–576, title II, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title II, §201, Oct. 16, 1964, 75 Stat. 1100; Pub. L. 89–752, §15, Nov. 3, 1966, 80 Stat. 1245; Pub. L. 90–575, title I, §171(a), Oct. 16, 1968, 82 Stat. 1034; Pub. L. 91–95, §3, Oct. 22, 1969, 83 Stat. 143; Pub. L. 92–318, title I, §137(a)(1), June 23, 1972, 86 Stat. 272; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, authorized appropriations for the years ending June 30, 1959, to June 30, 1972, and each of the next three fiscal years as necessary, for low-interest loans to students in institutes of higher education under sections 421 to 425 and 427 to 429 of this title.
Section 422, Pub. L. 85–864, title II, §202, Sept. 2, 1958, 72 Stat. 1583; Pub. L. 87–344, title II, §201(b), Oct. 3, 1961, 75 Stat. 759; Pub. L. 88–210, title II, §202(b), formerly §22(b), Dec. 18, 1963, 77 Stat. 416, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title II, §202, Oct. 16, 1964, 78 Stat. 1101; Pub. L. 90–575, title I, §171(b), Oct. 16, 1968, 82 Stat. 1034; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to allotments to States from funds appropriated under section 421 of this title.
Section 423, Pub. L. 85–864, title II, §203, Sept. 2, 1958, 72 Stat. 1584; Pub. L. 88–210; title II, §202(c), formerly §22(c), Dec. 18, 1963, 77 Stat. 416, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title II, §203, Oct. 16, 1964, 78 Stat. 1101; Pub. L. 90–575, title I, §174(b), Oct. 16, 1968, 82 Stat. 1035; Pub. L. 92–318, title I, §137(b), June 23, 1972, 86 Stat. 272; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to Federal capital contributions to State institutions of higher education.
Section 424, Pub. L. 85–864, title II, §204, Sept. 2, 1958, 72 Stat. 1584; Pub. L. 88–665, title II, §204(a), Oct. 16, 1964, 78 Stat. 1101; Pub. L. 89–329, title IV, §§492, 496(b), formerly §§462, 466(b), Nov. 8, 1965, 79 Stat. 1252, 1254, renumbered and amended Pub. L. 90–575, title I, §§141, 172, 175, Oct. 16, 1968, 82 Stat. 1030, 1034, 1035; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to conditions of agreements between Secretary of Education and institutions of higher education and reimbursement of administrative expenses to such institutions.
Section 425, Pub. L. 85–864, title II, §205, Sept. 2, 1958, 72 Stat. 1584; Pub. L. 87–293, title I, §20, Sept. 22, 1961, 75 Stat. 623; Pub. L. 87–400, §1(a), Oct. 5, 1961, 75 Stat. 832; Pub. L. 88–210, title II, §202(d)(1), (2), formerly §22(d)(1), (2), Dec. 18, 1963, 77 Stat. 416, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title II, §205(a), (b), Oct. 16, 1964, 78 Stat. 1101, 1102; Pub. L. 89–253, §31(a), Oct. 9, 1965, 79 Stat. 979; Pub. L. 89–329, title IV, §§493(a), (b), 494(a), 495(a), 496(a), formerly §§463(a), (b), 464(a), 465(a), 466(a), Nov. 8, 1965, 79 Stat. 1252, 1253; Pub. L. 89–572, §5(a), Sept. 13, 1966, 80 Stat. 765; Pub. L. 89–752, §16(a), Nov. 3, 1966, 80 Stat. 1245; Pub. L. 89–794, title XI, §1101(a), Nov. 8, 1966, 80 Stat. 1476; renumbered and amended Pub. L. 90–575, title I, §§141, 173(a), Oct. 16, 1968, 82 Stat. 1030, 1034; Pub. L. 91–230, title V, §501(a), Apr. 13, 1970, 84 Stat. 174; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to terms of loans made to students from loan funds established by institutions of higher education.
Section, Pub. L. 85–864, title II, §206, Sept. 2, 1958, 72 Stat. 1586; Pub. L. 87–344, title II, §201(c), Oct. 3, 1961, 75 Stat. 759; Pub. L. 88–210, title II, §202(e), formerly §22(e), Dec. 18, 1963, 77 Stat. 416, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title II, §206, Oct. 16, 1964, 78 Stat. 1102; Pub. L. 90–575, title I, §171(c), Oct. 16, 1968, 82 Stat. 1034, provided for distributions of assets from student loan funds. See section 1087ff of this title.
Repeal effective June 23, 1972, see section 137(d)(2) of Pub. L. 92–318.
This subchapter has not been funded since fiscal year 1975.
Section 427, Pub. L. 85–864, title II, §207, Sept. 2, 1958, 72 Stat. 1587; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to loans to help finance an institution's capital contribution to a student loan fund.
Section 428, Pub. L. 85–864, title II, §208, Sept. 2, 1958, 72 Stat. 1587; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to payments to cover reductions in amounts of student loans.
Section 429, Pub. L. 85–864, title II, §209, Sept. 2, 1958, 72 Stat. 1587; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, contained administrative provisions relating to modification of agreements and loans, compromise, waiver, or release of rights, and finality and conclusiveness of financial transactions and vouchers of the Secretary.
This part has not been funded since the fiscal year ending prior to Oct. 1, 1978.
Section 441, Pub. L. 85–864, title III, §301, Sept. 2, 1958, 72 Stat. 1588; Pub. L. 87–344, title II, §202(a), Oct. 3, 1961, 75 Stat. 760; Pub. L. 88–210, title II, §203(a), formerly §23(a), Dec. 18, 1963, 77 Stat. 416, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title III, §302, Oct. 16, 1964, 78 Stat. 1103; Pub. L. 89–329, title IV, §497(a)(2), formerly §467(a)(2), Nov. 8, 1965, 79 Stat. 1254; Pub. L. 89–752, §17(b), Nov. 3, 1966, 80 Stat. 1245; renumbered and amended Pub. L. 90–575, title I, §141, title III, §§301(a), (b), 304(b), Oct. 16, 1968, 82 Stat. 1030, 1052, 1053; Pub. L. 91–230, title VIII, §807(a)(3), Apr. 13, 1970, 84 Stat. 192; Pub. L. 92–318, title V, §502, June 23, 1972, 86 Stat. 345; Pub. L. 93–380, title VI, §651(a), Aug. 21, 1974, 88 Stat. 588; Pub. L. 94–482, title III, §301, title V, §501(k)(1), Oct. 12, 1976, 90 Stat. 2215, 2237; Pub. L. 95–112, §4, Sept. 24, 1977, 91 Stat. 912, authorized appropriations for the fiscal year ending June 30, 1959, through the fiscal year ending prior to Oct. 1, 1978, for payments to State educational agencies under sections 441 to 445 of this title.
Section 442, Pub. L. 85–864, title III, §302, Sept. 2, 1958, 72 Stat. 1588; Pub. L. 86–70, §18(a)(2), June 25, 1959, 73 Stat. 144; Pub. L. 86–624, §14(a)(2)(A), (C), July 12, 1960, 74 Stat. 413; Pub. L. 87–344, title II, §202(b), Oct. 3, 1961, 75 Stat. 760; Pub. L. 88–210, title II, §203(b), formerly §23(b), Dec. 18, 1963, 77 Stat. 416, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title III, §303, Oct. 16, 1964, 78 Stat. 1103; Pub. L. 90–575, title III, §§303(b), 304(b), 351(b), Oct. 16, 1968, 82 Stat. 1053, 1058; Pub. L. 94–482, title V, §501(m)(2), Oct. 12, 1976, 90 Stat. 2237; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to allotments to States from funds appropriated under section 441 of this title.
Section 443, Pub. L. 85–864, title III, §303, Sept. 2, 1958, 72 Stat. 1589; Pub. L. 88–210, title II, §203(c), formerly §23(c), Dec. 18, 1963, 77 Stat. 417, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title III, §304, Oct. 16, 1964, 78 Stat. 1103; Pub. L. 89–329, title IV, §497(a)(1), formerly §467(a)(1), Nov. 8, 1965, 79 Stat. 1254; Pub. L. 89–752, §17(a), Nov. 3, 1966, 80 Stat. 1245; renumbered and amended Pub. L. 90–575, title I, §141, title III, §§302, 304(b), Oct. 16, 1968, 82 Stat. 1030, 1052, 1053; Pub. L. 91–230, title VIII, §807(a)(1), (2), Apr. 13, 1970, 84 Stat. 192; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to the requirements of State plans of any State desiring to receive payments under sections 441 to 445 of this title.
Section 444, Pub. L. 85–864, title III, §304, Sept. 2, 1958, 72 Stat. 1589; Pub. L. 87–344, title II, §202(c), Oct. 3, 1961, 75 Stat. 760; Pub. L. 88–210, title II, §203(d), formerly §23(d), Dec. 18, 1963, 77 Stat. 417, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title III, §305, Oct. 16, 1964, 78 Stat. 1104; Pub. L. 90–575, title III, §301(c), Oct. 16, 1968, 82 Stat. 1052; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to payments to States with plans approved under section 443 of this title.
Section 445, Pub. L. 85–864, title III, §305, Sept. 2, 1958, 72 Stat. 1590; Pub. L. 88–665, title III, §306, Oct. 16, 1964, 78 Stat. 1104; Pub. L. 90–575, title III, §303(a), Oct. 16, 1968, 82 Stat. 1053; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to loans to private nonprofit elementary and secondary schools in any State.
This part has not been funded since fiscal year 1971.
Section 451, Pub. L. 85–864, title III, §311, as added Pub. L. 90–575, title III, §304(b), Oct. 16, 1968, 82 Stat. 1054, authorized appropriations for the years ending June 30, 1969, to June 30, 1971, for carrying out the provisions of sections 451 to 455 of this title.
Section 452, Pub. L. 85–864, title III, §312, as added Pub. L. 90–575, title III, §304(b), Oct. 16, 1968, 82 Stat. 1054; amended Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to allotments to local educational agencies from funds appropriated under section 451 of this title.
Section 453, Pub. L. 85–864, title III, §313, as added Pub. L. 90–575, title III, §304(b), Oct. 16, 1968, 82 Stat. 1054; amended Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to applications for funds by local educational agencies, approved by the appropriate State educational agency.
Section 454, Pub. L. 85–864, title III, §314, as added Pub. L. 90–575, title III, §304(b), Oct. 16, 1968, 82 Stat. 1055; amended Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to the requirements for applications of States desiring to participate in programs under sections 451 to 455 of this title.
Section 455, Pub. L. 85–864, title III, §315, as added Pub. L. 90–575, title III, §304(b), Oct. 16, 1968, 82 Stat. 1055; amended Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to payments to States for distribution to eligible local educational agencies of such States.
Fellowships under this subchapter have not been authorized since the fiscal year ending June 30, 1973.
Section 461, Pub. L. 85–864, title IV, §401, Sept. 2, 1958, 72 Stat. 1590, authorized appropriations to carry out sections 461 to 465 of this title.
Section 462, Pub. L. 85–864, title IV, §402, Sept. 2, 1958, 72 Stat. 1591; Pub. L. 87–344, title II, §203, Oct. 3, 1961, 75 Stat. 760; Pub. L. 88–210, title II, §204(a), (b), formerly §24(a), (b), Dec. 18, 1963, 77 Stat. 417, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title IV, §401, Oct. 16, 1964, 78 Stat. 1104; Pub. L. 90–575, title III, §§311(a), 312(a), Oct. 16, 1968, 82 Stat. 1056; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to the number of fellowships to be awarded.
Section 463, Pub. L. 85–864, title IV, §403, Sept. 2, 1958, 72 Stat. 1591; Pub. L. 88–665, title IV, §402(a)–(c), Oct. 16, 1964, 78 Stat. 1104; Pub. L. 90–575, title III, §§311(b), 312(c), 314, Oct. 16, 1968, 82 Stat. 1056, 1057; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, contained requirements and limitations relating to the awarding of fellowships.
Section 464, Pub. L. 85–864, title IV, §404, Sept. 2, 1958, 72 Stat. 1591; Pub. L. 88–210, title II, §204(c), formerly §24(c), Dec. 18, 1963, 77 Stat. 417, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title IV, §403, Oct. 16, 1964, 78 Stat. 1105; Pub. L. 90–575, title III, §313(a), Oct. 16, 1968, 82 Stat. 1056; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to payment of stipends to persons awarded scholarships and payments to institutions of higher education at which such persons were pursuing courses of study.
Section 465, Pub. L. 85–864, title IV, §405, Sept. 2, 1958, 72 Stat. 1591; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, provided for conditions relating to continued receipt of payments under section 464 of this title to persons awarded fellowships.
This subchapter is no longer funded and was superseded by title III of the Elementary and Secondary Education Act of 1965, which was classified to subchapter II of chapter 24 of this title. Subchapter II of chapter 24 of this title was omitted in the general revision of title III of the Elementary and Secondary Education Act of 1965 by Pub. L. 95–561.
Section 481, Pub. L. 85–864, title V, §501, Sept. 2, 1958, 72 Stat. 1592; Pub. L. 87–344, title II, §204(a), Oct. 3, 1961, 75 Stat. 760; Pub. L. 88–210, title II, §205(a), formerly, §25(a), Dec. 18, 1963, 77 Stat. 417, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title V, §501, Oct. 16, 1964, 78 Stat. 1105; Pub. L. 90–575, title III, §321(a), Oct. 16, 1968, 82 Stat. 1057, authorized appropriations for the years ending June 30, 1963, to June 30, 1971, for making grants to State educational agencies under sections 481 to 484 of this title.
Section 482, Pub. L. 85–864, title V, §502, Sept. 2, 1958, 72 Stat. 1592; Pub. L. 88–210, title II, §205(b), formerly §25(b), Dec. 18, 1963, 77 Stat. 417, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 90–575, title III, §351(b), Oct. 16, 1968, 82 Stat. 1058, related to allotments to States from sums appropriated under section 481 of this title.
Section 483, Pub. L. 85–864, title V, §503, Sept. 2, 1958, 72 Stat. 1592; Pub. L. 88–210, title II, §205(c), formerly §25(c), Dec. 18, 1963, 77 Stat. 418, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title V, §502, Oct. 16, 1964, 78 Stat. 1105; Pub. L. 90–575, title III, §322, Oct. 16, 1968, 82 Stat. 1057, related to requirements of State plans of any State desiring to receive payments under sections 481 to 484 of this title.
Section 484, Pub. L. 85–864, title V, §504, Sept. 2, 1958, 72 Stat. 1592; Pub. L. 87–344, title II, §204(b), (c), Oct. 3, 1961, 75 Stat. 760; Pub. L. 88–210, title II, §205(d), formerly §25(d), Dec. 18, 1963, 77 Stat. 418, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title V, §503, Oct. 16, 1964, 78 Stat. 1105; Pub. L. 90–575, title III, §321(b), Oct. 16, 1968, 82 Stat. 1057, related to payments to States with plans approved under section 483 of this title.
Section 485, Pub. L. 85–864, title V, §505, as added Pub. L. 88–665, title V, §504, Oct. 16, 1964, 78 Stat. 1106, defined “junior colleges or technical institutes” as used in this subchapter.
Section, Pub. L. 85–864, title V, §511, Sept. 2, 1958, 72 Stat. 1593; Pub. L. 87–344, title II, §204(d), Oct. 3, 1961, 75 Stat. 760; Pub. L. 88–210, title II, §205(e), formerly §25(e), Dec. 18, 1963, 77 Stat. 418, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title V, §505, Oct. 16, 1964, 78 Stat. 1106, authorized appropriations for the years ending June 30, 1959 and 1960 and the eight succeeding fiscal years for operation by institutes of higher education of institutes for advanced study. For further details see Codification note set out under section 481 of this title.
Section 511, Pub. L. 85–864, title VI, §601, Sept. 2, 1958, 72 Stat. 1593; Pub. L. 87–344, title II, §205(a), Oct. 3, 1961, 75 Stat. 760; Pub. L. 88–210, title II, §206(a), formerly §26(a), Dec. 18, 1963, 77 Stat. 418, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title VI, §601(a), Oct. 16, 1964, 78 Stat. 1106; Pub. L. 89–698, title II, §201, Oct. 29, 1966, 80 Stat. 1069; Pub. L. 90–575, title III, §331(a), Oct. 16, 1968, 82 Stat. 1057; Pub. L. 92–318, title I, §182(a), June 23, 1972, 86 Stat. 311, provided for language and area centers and programs. See section 1121 et seq. of this title.
Section 512, Pub. L. 85–864, title VI, §602, Sept. 2, 1958, 72 Stat. 1594; Pub. L. 94–482, title III, §302(d), Oct. 12, 1976, 90 Stat. 2216; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, authorized a program of research and studies. See section 1125 of this title.
Section 512a, Pub. L. 85–864, title VI, §603, as added Pub. L. 94–482, title III, §302(b), Oct. 12, 1976, 90 Stat. 2215; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, provided for a program of grants and contracts for promotion of cultural understanding.
Section 513, Pub. L. 85–864, title VI, §604, formerly §603, Sept. 2, 1958, 72 Stat. 1594; Pub. L. 88–665, title VI, §601(b), Oct. 16, 1964, 78 Stat. 1107; Pub. L. 90–575, title III, §331(b), Oct. 16, 1968, 82 Stat. 1057; Pub. L. 92–318, title I, §182(b), June 23, 1972, 86 Stat. 312; renumbered and amended Pub. L. 94–482, title III, §302(b), (c), Oct. 12, 1976, 90 Stat. 2215, 2216; Pub. L. 95–43, §1(c), June 15, 1977, 91 Stat. 219; Pub. L. 96–49, §15, Aug. 13, 1979, 93 Stat. 354, authorized appropriations for foreign studies and language development program. See section 1130b of this title.
Repeal effective Oct. 1, 1980, see section 1393 of Pub. L. 96–374, set out as an Effective Date of 1980 Amendment note under section 1001 of this title.
Section, Pub. L. 85–864, title VI, §611, Sept. 2, 1958, 72 Stat. 1594; Pub. L. 87–344, title II, §205(b), Oct. 3, 1961, 75 Stat. 760; Pub. L. 88–210, title II, §206(b), formerly §26(b), Dec. 18, 1963, 77 Stat. 418, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064, authorized appropriation of $7,250,000 for fiscal year ending June 30, 1959 and each of six succeeding fiscal years for language institutes.
Repeal effective July 1, 1964, see section 602 of Pub. L. 88–665.
This subchapter has not been funded since the fiscal year ending in 1968.
Section 541, Pub. L. 85–864, title VII, §701, Sept. 2, 1958, 72 Stat. 1595; Pub. L. 88–210, title II, §207(a), formerly §27(a), Dec. 18, 1963, 77 Stat. 419, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, directed Secretary of Education, in cooperation with Advisory Committee on New Educational Media, to conduct, assist, and foster research and experimentation in development and evaluation of projects involving communication media of possible value to State or local educational agencies.
Section 542, Pub. L. 85–864, title VII, §702, Sept. 2, 1958, 72 Stat. 1595; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, authorized Secretary to make grants-in-aid or contracts for projects of research or experimentation referred to in section 541 of this title.
Section, Pub. L. 85–864, title VII, §731, Sept. 2, 1958, 72 Stat. 1595; Pub. L. 88–210, title II, §207(b), formerly §27(b), Dec. 18, 1963, 77 Stat. 419, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to functions of Secretary of Education with respect to dissemination of information on new educational media. See Codification note set out under sections 541, 542 of this title.
This subchapter has not been funded since the fiscal year ending in 1968.
Section 561, Pub. L. 85–864, title VII, §761, Sept. 2, 1958, 72 Stat. 1596; Pub. L. 88–210, title II, §207(c), formerly §27(c), Dec. 18, 1963, 77 Stat. 419, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 91–230, title IV, §401(h)(1), Apr. 13, 1970, 84 Stat. 174; Pub. L. 96–88, title III, §301, title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to establishment, functions and utilization of services of Advisory Committee on New Educational Media.
Section 562, Pub. L. 85–864, title VII, §762, Sept. 2, 1958, 72 Stat. 1597; Pub. L. 90–575, title III, §341, Oct. 16, 1968, 82 Stat. 1058; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to securing of assistance and advice of experts in utilization and adaptation of new media and technology for educational purposes.
Section 563, Pub. L. 85–864, title VII, §763, Sept. 2, 1958, 72 Stat. 1597; Pub. L. 87–344, title II, §206, Oct. 3, 1961, 75 Stat. 760; Pub. L. 88–210, title II, §207(d), formerly §27(d), Dec. 18, 1963; 77 Stat. 419, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title VII, §701, Oct. 16, 1964, 78 Stat. 1107, authorized appropriations for fiscal year ending June 30, 1959, and for each of nine succeeding fiscal years to carry out provisions of this subchapter.
The programs provided for in this chapter have not been funded for a number of years. See Codification notes set out under section 421, 441, 451, 461, 481, 541, and 591 of this title.
Section, Pub. L. 85–864, title X, §1001, Sept. 2, 1958, 72 Stat. 1602; Pub. L. 87–835, §3, Oct. 16, 1962, 76 Stat. 1070; Pub. L. 90–575, title I, §176, Oct. 16, 1968, 82 Stat. 1035; Pub. L. 91–230, title IV, §401(c)(4), Apr. 13, 1970, 84 Stat. 173; Pub. L. 96–88, title III, §301, title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, contained the general administrative provisions for the National Defense Education Act of 1958 [this chapter] including provisions as to reports to Congress, development of policies and procedures, consultation with agencies, agency functions and authority under other laws, restriction on loans, fellowships and stipends, oath or affirmation, statement of conviction, registration of Communist organization, criminal penalties, and authority to refuse or revoke fellowship awards.
Section 582, Pub. L. 85–864, title X, §1002, Sept. 2, 1958, 72 Stat. 1602, authorized Commissioner to appoint advisory committees to advise and consult with respect to administration of National Defense Act, prescribed a membership of twelve, four each from fields of science (engineering, mathematics, or science), humanities, and other appropriate fields, and provided for compensation ($50 per day limitation) and travel expenses of committee members.
Section 583, Pub. L. 85–864, title X, §1003, Sept. 2, 1958, 72 Stat. 1603, exempted members of advisory committees or information councils from conflict-of-interest laws, with certain exceptions.
The programs provided for in this chapter have not been funded for a number of years. See Codification notes set out under sections 421, 441, 451, 461, 481, 541, and 591 of this title.
Section 584, Pub. L. 85–864, title X, §1004, Sept. 2, 1958, 72 Stat. 1603; Pub. L. 88–665, title VIII, §801, Oct. 16, 1964, 78 Stat. 1107; Pub. L. 90–575, title III, §304(c), Oct. 16, 1968, 82 Stat. 1055; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to administration of State plans, including the requirements for approval of State plans, notice and hearing prior to disapproval of a State plan, and restrictions on payments to States for failure to comply with provisions of this chapter.
Section 585, Pub. L. 85–864, title X, §1005, Sept. 2, 1958, 72 Stat. 1604; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, provided for judicial review where a State was dissatisfied with Secretary's final action with respect to the approval of its State plan or with respect to restriction of payments to the State for failure to maintain compliance with conditions governing original approval of such plan.
Section 586, Pub. L. 85–864, title X, §1006, Sept. 2, 1958, 72 Stat. 1604, provided that payments to any individual or to any State or Federal agency, institution of higher education, or any other organization, pursuant to a grant, loan, or contract, could be made in installments, and in advance or by way of reimbursement, and, in case of grants or loans, with necessary adjustments on account of overpayments or underpayments.
Section 587, Pub. L. 85–864, title X, §1007, Sept. 2, 1958, 72 Stat. 1604, authorized appropriations for fiscal year ending June 30, 1959, and for each fiscal year thereafter, of such sums as might be necessary for administrative costs, including administrative expenses of State commissions.
Section 588, Pub. L. 85–864, title X, §1008, Sept. 2, 1958, 72 Stat. 1605; Pub. L. 86–70, §18(a)(3), June 25, 1959, 73 Stat. 144; Pub. L. 86–624, §14(a)(3), July 12, 1960, 74 Stat. 413; Pub. L. 88–210, title II, §208(a), formerly §28(a), Dec. 18, 1963, 77 Stat. 419, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 90–575, title III, §351(a), Oct. 16, 1968, 82 Stat. 1058; Pub. L. 94–482, title V, §501(m)(3), Oct. 12, 1976, 90 Stat. 2237; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, related to allotments to territories and possessions from amounts reserved by Secretary under provisions relating to allotments to States and educational institutions.
Section 589, Pub. L. 85–864, title X, §1009, Sept. 2, 1958, 72 Stat. 1605; Pub. L. 87–344, title II, §208, Oct. 3, 1961, 75 Stat. 761; Pub. L. 88–210, title II, §208(b), formerly §28(b), Dec. 18, 1963, 77 Stat. 419, renumbered Pub. L. 90–576, title I, §101(a)(1), Oct. 16, 1968, 82 Stat. 1064; Pub. L. 88–665, title VIII, §802, Oct. 16, 1964, 78 Stat. 1107, authorized appropriations for fiscal year ending June 30, 1959, and each of nine succeeding fiscal years for grants to States for improvement of statistical services of State educational agencies and prescribed terms and conditions for such grants.
This part has not been funded since the fiscal year ending June 30, 1968.
Section 591, Pub. L. 85–864, title XI, §1101, as added Pub. L. 88–665, title IX, §901(a), Oct. 16, 1964, 78 Stat. 1107; amended Pub. L. 89–329, title II, §225, title IV, §497(b), formerly §467(b), Nov. 8, 1965, 79 Stat. 1228, 1254, renumbered Pub. L. 90–575, title I, §141, Oct. 16, 1968, 82 Stat. 1030; Pub. L. 90–247, title VII, §705, Jan. 2, 1968, 81 Stat. 820; Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, authorized appropriations for fiscal years ending June 30, 1965, to June 30, 1968, for grants to institutions of higher education for operation of institutes for advanced study.
Section 592, Pub. L. 85–864, title XI, §1102, as added Pub. L. 88–665, title IX, §901(a), Oct. 16, 1964, 78 Stat. 1108; amended Pub. L. 89–698, title II, §202(2), Oct. 29, 1966, 80 Stat. 1070, related to receipt of stipends by individuals attending institutes for advanced study.
This part has not been funded since the fiscal year ending June 30, 1968.
Section 601, Pub. L. 85–864, title XI, §1111, as added Pub. L. 89–698, title II, §202(3), Oct. 29, 1966, 80 Stat. 1070; amended Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, authorized appropriations for fiscal years ending June 30, 1967 and June 30, 1968, for international affairs institutes for secondary school teachers.
Section 602, Pub. L. 85–864, title XI, §1112, as added Pub. L. 89–698, title II, §202(3), Oct. 29, 1966, 80 Stat. 1070; amended Pub. L. 96–88, title III, §301(a)(1), title V, §507, Oct. 17, 1979, 93 Stat. 677, 692, authorized payment of stipends to individuals studying in programs assisted under section 601 of this title.
Section 611, Pub. L. 85–926, §1, Sept. 6, 1958, 72 Stat. 1777; Pub. L. 88–164, title III, §301(a)(1)–(3), (b), Oct. 31, 1963, 77 Stat. 294; Pub. L. 90–576, title III, §304, Oct. 16, 1968, 82 Stat. 1096, authorized grants to public or non-profit institutions and enumerated certain uses of the grants.
Section 612, Pub. L. 85–926, §2, Sept. 6, 1958, 72 Stat. 1777; Pub. L. 86–158, title II, §201, Aug. 14, 1959, 73 Stat. 346; Pub. L. 88–164, title III, §301(a)(3), Oct. 31, 1963, 77 Stat. 294, authorized grants to State educational agencies for fellowships.
Section 613, Pub. L. 85–926, §3, Sept. 6, 1958, 72 Stat. 1777; Pub. L. 88–164, title III, §301(a)(4), Oct. 31, 1963, 77 Stat. 294, related to payment of grants.
Section 614, Pub. L. 85–926, §4, Sept. 6, 1958, 72 Stat. 1777, required submission of report to Commissioner, including financial statement.
Section 615, Pub. L. 85–926, §5, Sept. 6, 1958, 72 Stat. 1777; Pub. L. 89–105, §7, Aug. 4, 1965, 79 Stat. 430, defined terms “nonprofit institution”, “State educational agency” and “State”.
Section 616, Pub. L. 85–926, §6, Sept. 6, 1958, 72 Stat. 1777, authorized delegation of functions.
Section 617, Pub. L. 85–926, §7, Sept. 6, 1958, 72 Stat. 1777; Pub. L. 88–164, title III, §301(a)(4), Oct. 31, 1963, 77 Stat. 294; Pub. L. 89–105, §8, Aug. 4, 1965, 79 Stat. 430; Pub. L. 90–170, §6, Dec. 4, 1967, 81 Stat. 530, authorized appropriations of $19,500,000; $29,500,000; $34,000,000; $37,500,000; and $55,000,000 for fiscal years ending June 30, 1966, 1967, 1968, 1969, and 1970, respectively.
Section 618, Pub. L. 88–164, title III, §302, Oct. 31, 1963, 77 Stat. 295; Pub. L. 89–105, §§4, 5, Aug. 4, 1965, 79 Stat. 429, 430; Pub. L. 90–247, title I, §156, Jan. 2, 1968, 81 Stat. 805, related to research and demonstration projects: authorization of appropriations, installments, advances, or reimbursements, and conditions; advisory committees; panel or experts; compensation and travel expenses; delegation of functions; construction, equipping and operation of facilities; wages of laborers and authority and functions of Secretary of Labor; definition of “construction” and “cost of construction”; and definition of “research and related purposes”.
Repeal effective July 1, 1971, see section 662 of Pub. L. 91–230.
Sections 621 to 624, Pub. L. 90–538, §§2–5, Sept. 30, 1968, 82 Stat. 901, 902, popularly known as the “Handicapped Children's Early Education Assistance Act”, related to the following subject matter:
Section 621, experimental preschool and early education programs for handicapped children: authorization, special problems of the handicapped, National distribution, urban and rural areas, and scope of activities and services; community coordination of programs; and Federal share and non-Federal contributions.
Section 622, evaluation.
Section 623, definition of handicapped children.
Section 624, appropriations authorization.
For general subject matter of these sections, see sections 1423, 1425, 1401(1), and 1426 of this title, respectively.
Repeal effective July 1, 1971, see section 662 of Pub. L. 91–230.
Act Sept. 23, 1950, ch. 995, 64 Stat. 967, as amended, was classified to chapter 14 (§251 et seq.) of this title prior to general amendment by Pub. L. 85–620, Aug. 12, 1958, 72 Stat. 548.
Section 631, act Sept. 23, 1950, ch. 995, §1, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 548; amended Apr. 28, 1988, Pub. L. 100–297, title II, §2031(b), 102 Stat. 301, related to Congressional declaration of purpose and authorization of appropriations.
Section 632, act Sept. 23, 1950, ch. 995, §2, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 548; amended Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), 102 Stat. 301, related to annual apportionment of funds and use of remainder of funds.
Section 633, act Sept. 23, 1950, ch. 995, §3, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 548; amended Oct. 3, 1961, Pub. L. 87–344, title I, §101(a), 75 Stat. 759; Dec. 18, 1963, Pub. L. 88–210, title III, §301(a), formerly §31(a), 77 Stat. 419, renumbered title III, §301(a), Oct. 16, 1968, Pub. L. 90–576, title I, §101(a)(1), 82 Stat. 1064; Oct. 16, 1964, Pub. L. 88–665, title XI, §1101(a), 78 Stat. 1109; Nov. 3, 1966, Pub. L. 89–750, title II, §221, 80 Stat. 1213; Jan. 2, 1968, Pub. L. 90–247, title III, §301(d)(1), 81 Stat. 813; Apr. 13, 1970, Pub. L. 91–230, title II, §§201(a)(1), 203(c)(3), 84 Stat. 154, 156; Aug. 21, 1974, Pub. L. 93–380, title III, §301(a)(1), 88 Stat. 521; Apr. 21, 1976, Pub. L. 94–273, §2(13), 90 Stat. 375; Nov. 1, 1978, Pub. L. 95–561, title X, §1021(a), 92 Stat. 2311; Oct. 19, 1984, Pub. L. 98–511, title III, §301(b)(1), 98 Stat. 2388; Apr. 28, 1988, Pub. L. 100–297, title II, §§2031(a)(1), 2032(a)(1), 102 Stat. 301, related to dates for filing applications and priorities.
Section 634, act Sept. 23, 1950, ch. 995, §4, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 549; amended Nov. 3, 1966, Pub. L. 89–750, title II, §224, 80 Stat. 1214; Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), 102 Stat. 301, related to Federal share of cost of any project.
Section 635, act Sept. 23, 1950, ch. 995, §5, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 549; amended Nov. 1, 1965, Pub. L. 89–313, §5, 79 Stat. 1161; Nov. 3, 1966, Pub. L. 89–750, title II, §§222(a), (e), 223, 226, 227, 80 Stat. 1213–1215; Jan. 2, 1968, Pub. L. 90–247, title II, §§205(b), 207, 81 Stat. 809; Apr. 13, 1970, Pub. L. 91–230, title II, §§203(a)(3), 204, 84 Stat. 155, 157; May 21, 1970, Pub. L. 91–260, 84 Stat. 254; Aug. 21, 1974, Pub. L. 93–380, title III, §302(a), 88 Stat. 521; Nov. 1, 1978, Pub. L. 95–561, title X, §1022, 92 Stat. 2312; Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), 102 Stat. 301, related to limitation on total payments to local agencies.
Section 636, act Sept. 23, 1950, ch. 995, §6, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 551; amended Apr. 13, 1970, Pub. L. 91–230, title IV, §401(g)(4), 84 Stat. 174; Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), 102 Stat. 301, related to applications for payment.
Section 637, act Sept. 23, 1950, ch. 995, §7, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 552; amended Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), 102 Stat. 301, related to payments to local agencies.
Section 638, act Sept. 23, 1950, ch. 995, §8, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 552; amended Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), 102 Stat. 301, related to additional payments in unusual cases.
Section 639, act Sept. 23, 1950, ch. 995, §9, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 553; amended Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), 102 Stat. 301, related to procedure in cases of temporary Federal activities and donation of temporary school facilities.
Section 640, act Sept. 23, 1950, ch. 995, §10, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 553; amended May 6, 1960, Pub. L. 86–449, title V, §502, 74 Stat. 89; July 21, 1965, Pub. L. 89–77, §1, 79 Stat. 243; Nov. 3, 1966, Pub. L. 89–750, title II, §§228, 229, 80 Stat. 1215; Nov. 1, 1978, Pub. L. 95–561, title X, §§1023, 1031(b)(1), 92 Stat. 2312; Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), 102 Stat. 301, related to children for whom local agencies are unable to provide education.
Section 641, act Sept. 23, 1950, ch. 995, §11, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 554; amended Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), (2), 102 Stat. 301, related to withholding of payments for noncompliance.
Section 642, act Sept. 23, 1950, ch. 995, §12, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 554; amended Apr. 13, 1970, Pub. L. 91–230, title IV, §401(f)(3), (g)(4), 84 Stat. 173, 174; Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), 102 Stat. 301, related to administration of this chapter.
Section 643, act Sept. 23, 1950, ch. 995, §13, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 554; amended Apr. 13, 1970, Pub. L. 91–230, title IV, §401(c)(3), 84 Stat. 173; Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), 102 Stat. 301, related to Federal departments and agencies under this chapter.
Section 644, act Sept. 23, 1950, ch. 995, §14, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 555; amended Oct. 3, 1961, Pub. L. 87–344, title I, §101(b), 75 Stat. 759; Dec. 18, 1963, Pub. L. 88–210, title III, §301(b), formerly §31(b), 77 Stat. 419, renumbered Oct. 16, 1968, Pub. L. 90–576, title I, §101(a)(1), 82 Stat. 1064; Oct. 16, 1964, Pub. L. 88–665, title XI, §1101(b), 78 Stat. 1109; Nov. 3, 1966, Pub. L. 89–750, title II, §225, 80 Stat. 1214; Jan. 2, 1968, Pub. L. 90–247, title II, §203, 81 Stat. 807; Apr. 13, 1970, Pub. L. 91–230, title II, §§205(a), 206, 84 Stat. 158, 159; Apr. 28, 1988, Pub. L. 100–297, title II, §§2032(a)(1), 2034, 102 Stat. 301, related to assistance in other federally-affected areas.
Section 645, act Sept. 23, 1950, ch. 995, §15, as added Aug. 12, 1958, Pub. L. 85–620, title I, §101, 72 Stat. 556; amended June 25, 1959, Pub. L. 86–70, §18(c), 73 Stat. 144; July 12, 1960, Pub. L. 86–624, §14(c), 74 Stat. 414; Oct. 3, 1961, Pub. L. 87–344, title I, §101(c), 75 Stat. 759; Dec. 18, 1963, Pub. L. 88–210, title III, §301(c), formerly §31(c), 77 Stat. 419, renumbered Oct. 16, 1968, Pub. L. 90–576, title I, §101(a)(1), 82 Stat. 1064; Oct. 16, 1964, Pub. L. 88–665, title XI, §1101(c), (d), 78 Stat. 1109; Nov. 3, 1966, Pub. L. 89–750, title II, §§222(b)–(d), 230–232, 80 Stat. 1213–1216; Jan. 2, 1968, Pub. L. 90–247, title II, §201, title III, §301(d)(2), 81 Stat. 806, 813; Apr. 13, 1970, Pub. L. 91–230, title II, §§201(a)(2), 203(a)(1), (2), 84 Stat. 154, 155; Aug. 12, 1970, Pub. L. 91–375, §§4(a), 6(o), 84 Stat. 773, 783; Aug. 21, 1974, Pub. L. 93–380, title III, §301(a)(2), 88 Stat. 521; Nov. 1, 1978, Pub. L. 95–561, title X, §§1021(b), 1031(b)(2), 92 Stat. 2312; Apr. 28, 1988, Pub. L. 100–297, title II, §§2031(a)(3), 2032(a)(1), (3), 102 Stat. 301, defined terms used in this chapter.
Section 646, act Sept. 23, 1950, ch. 995, §16, as added Nov. 1, 1965, Pub. L. 89–313, §1, 79 Stat. 1158; amended Jan. 2, 1968, Pub. L. 90–247, title II, §217, 81 Stat. 810; Oct. 21, 1968, Pub. L. 90–608, ch. IV, §402, 82 Stat. 1194; Apr. 13, 1970, Pub. L. 91–230, title II, §201(c), 84 Stat. 154; Dec. 31, 1970, Pub. L. 91–606, title III, §301(f), 84 Stat. 1759; 1973 Reorg. Plan No. 1, §§1, 3(a)(1), eff. July 1, 1973, 38 F.R. 9579, 87 Stat. 1089; Dec. 10, 1973, Ex. Ord. No. 11749, §2(2), 38 F.R. 34177; May 22, 1974, Pub. L. 93–288, title VII, §702(f), formerly title VI, §602(f), 88 Stat. 164, renumbered title VII, §702(f), Oct. 5, 1994, Pub. L. 103–337, div. C, title XXXIV, §3411(a)(1), (2), 108 Stat. 3100; Aug. 21, 1974, Pub. L. 93–380, title III, §§301(b), 302(b), 88 Stat. 521, 522; Apr. 21, 1976, Pub. L. 94–273, §3(6), 90 Stat. 376; Nov. 1, 1978, Pub. L. 95–561, title X, §§1010(b), 1021(a), 1024, 92 Stat. 2310–2312; July 20, 1979, Ex. Ord. No. 12148, §4–106, 44 F.R. 43239; Oct. 19, 1984, Pub. L. 98–511, title III, §301(b)(2), 98 Stat. 2388; Apr. 28, 1988, Pub. L. 100–297, title II, §§2031(a)(2), 2032(a)(1), (b), 2033, 102 Stat. 301; Nov. 23, 1988, Pub. L. 100–707, title I, §109(j), 102 Stat. 4709, related to assistance in cases of certain disasters.
Section 647, act Sept. 23, 1950, ch. 995, §17, as added Nov. 1, 1965, Pub. L. 89–313, §3, 79 Stat. 1161; amended Apr. 28, 1988, Pub. L. 100–297, title II, §2032(a)(1), 102 Stat. 301, provided that announcement of decrease in or cessation of Federal activities in certain areas not to affect determination of payment.
Repeal effective Oct. 1, 1994, see section 3(a)(3)(B) of Pub. L. 103–382, set out as a note under section 236 of this title.
Chapter consisted of Pub. L. 87–276, Sept. 22, 1961, 75 Stat. 575, in its entirety. Under the terms of section 6(b) thereof, as amended, the provisions of Pub. L. 87–276 terminated on June 30, 1964. See section 1401 et seq. of this title and section 2495 of Title 42, The Public Health and Welfare.
Section 671, Pub. L. 87–276, §1, Sept. 22, 1961, 75 Stat. 575, authorized Commissioner of Education to conduct a program of grants-in-aid to help provide courses of training and study for teachers of the deaf and to improve existing courses.
Section 672, Pub. L. 87–276, §2, Sept. 22, 1961, 75 Stat. 575, provided for making of payments by Commissioner under such a program.
Section 673, Pub. L. 87–276, §3, Sept. 22, 1961, 75 Stat. 575, defined “nonprofit”, “accredited”, and “approved”.
Section 674, Pub. L. 87–276, §4, Sept. 22, 1961, 75 Stat. 576, authorized Commissioner to delegate his functions under this chapter except the making of regulations.
Section 675, Pub. L. 87–276, §5, Sept. 22, 1961, 75 Stat. 576, established Advisory Committee on the Training of Teachers of the Deaf to review and otherwise make recommendations in connection with grants-in-aid program.
Section 676, Pub. L. 87–276, §6, Sept. 22, 1961, 75 Stat. 576; Pub. L. 88–164, title III, §301(c), Oct. 31, 1963, 77 Stat. 295, authorized appropriations up through fiscal year ending June 30, 1964, and provided for termination of this chapter on June 30, 1964. Pub. L. 91–230, title VI, §662(4), Apr. 13, 1970, 84 Stat. 188, repealed title III of Pub. L. 88–164, cited above.
Section 681, Pub. L. 89–36, §2, June 8, 1965, 79 Stat. 125, stated purpose of and authorized appropriations for National Technical Institute for the Deaf. See section 4331 of this title.
Section 682, Pub. L. 89–36, §3, June 8, 1965, 79 Stat. 125; Pub. L. 96–88, title III, §301(a)(1), (2)(M), title V, §507, Oct. 17, 1979, 93 Stat. 677, 678, 692, defined “Secretary”, “institution of higher education”, and “construction”. See section 4351 of this title.
Section 683, Pub. L. 89–36, §4, June 8, 1965, 79 Stat. 125, related to proposals for establishing and operating a National Technical Institute for the Deaf.
Section 684, Pub. L. 89–36, §5, June 8, 1965, 79 Stat. 126, related to entering into an agreement for establishment and operation of a National Technical Institute for the Deaf. See section 4332 of this title.
Section 685, Pub. L. 89–36, §6, June 8, 1965, 79 Stat. 127, related to a National Advisory Board for the establishment of a national technical institute for the deaf.
Pub. L. 89–36, §1, June 8, 1965, 79 Stat. 125, which provided that this chapter be cited as the “National Technical Institute for the Deaf Act”, was repealed by Pub. L. 99–371, title II, §210(d), formerly title IV, §410(d), Aug. 4, 1986, 100 Stat. 794; renumbered title II, §210(d), Pub. L. 102–421, title I, §101(b)(5), (6), Oct. 16, 1992, 106 Stat. 2151.
Section, Pub. L. 95–355, title I, §100, Sept. 8, 1978, 92 Stat. 531, which authorized National Technical Institute for the Deaf to make purchases through General Services Administration, was transferred to section 4362 of this title.
Section 691, act June 18, 1954, ch. 324, §1, 68 Stat. 265, directed that Gallaudet College be successor to Columbia Institution for the Deaf. See section 4301(a) of this title.
Section 691a, act June 18, 1954, ch. 324, §2, 68 Stat. 265, stated purposes of Gallaudet College. See section 4301(b) of this title.
Section 691b, acts June 18, 1954, ch. 324, §3, 68 Stat. 265; Sept. 13, 1960, Pub. L. 86–776, §4, 74 Stat. 917; Oct. 17, 1979, Pub. L. 96–88, title III, §301(a)(2)(M), title V, §507, 93 Stat. 677, 692, related to property rights of Gallaudet College, assumption of outstanding liabilities and obligations against corporation under any former name, and conveyance or mortgage of property. See section 4302 of this title.
Section 691c, act June 18, 1954, ch. 324, §4, 68 Stat. 265, related to gifts of property to Gallaudet College. See section 4352(a) of this title.
Section 691d, acts June 18, 1954, ch. 324, §5, 68 Stat. 265; July 23, 1968, Pub. L. 90–415, §§1, 2, 82 Stat. 397, related to composition and appointment, etc., of Board of Directors of Gallaudet College. See section 4303(a) of this title.
Section 691e, act June 18, 1954, ch. 324, §6, 68 Stat. 266, related to powers of Board of Directors of Gallaudet College. See section 4303(b) of this title.
Section 691f, acts June 18, 1954, ch. 324, §7, 68 Stat. 266; Oct. 17, 1979, Pub. L. 96–88, title III, §301(a)(2)(M), title V, §507, 93 Stat. 677, 692, related to financial transactions and accounts of Gallaudet College and an annual report to Secretary of Education. See sections 4353 and 4354(a) of this title.
Section 691g, act June 18, 1954, ch. 324, §8, 68 Stat. 266, authorized appropriations for Gallaudet College.
Section 691h, R.S. §441; Mar. 4, 1911, ch. 285, 36 Stat. 1422; 1940 Reorg. Plan No. IV, §11, eff. June 30, 1940, 5 F.R. 2421, 54 Stat. 1234; 1953 Reorg. Plan No. 1, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631; June 18, 1954, ch. 324, §1, 68 Stat. 265; Oct. 17, 1979, Pub. L. 96–88, title III, §301(a)(2)(M), title V, §507, 93 Stat. 677, 692, which charged Secretary of Education with supervision of public business of Gallaudet College, was transferred to section 4361 of this title.
Section 691i, Pub. L. 95–355, title I, §100, Sept. 8, 1978, 92 Stat. 531, which authorized Gallaudet College to make purchases through General Services Administration, was transferred to section 4362 of this title.
Section 693, Pub. L. 89–694, §2, Oct. 15, 1966, 80 Stat. 1027, authorized appropriations for a model secondary school for the deaf.
Section 693a, Pub. L. 89–694, §3, Oct. 15, 1966, 80 Stat. 1027; Pub. L. 96–88, title III, §301(a)(2)(N), title V, §507, Oct. 17, 1979, 93 Stat. 677, 695, defined “Secretary”, “construction”, and “secondary school”. See section 4351 of this title.
Section 693b, Pub. L. 89–694, §4, Oct. 15, 1966, 80 Stat. 1027, related to an agreement with Gallaudet College to establish a model secondary school. See section 4322 of this title.
Pub. L. 89–694, §1, Oct. 15, 1966, 80 Stat. 1027, which provided that this subchapter be cited as the “Model Secondary School for the Deaf Act”, was repealed by Pub. L. 99–371, title II, §210(c), formerly title IV, §410(c), Aug. 4, 1986, 100 Stat. 794; renumbered title II, §210(c), Pub. L. 102–421, title I, §101(b)(5), (6), Oct. 16, 1992, 106 Stat. 2151.
Section 695, Pub. L. 91–587, §1, Dec. 24, 1970, 84 Stat. 1579, authorized Gallaudet College to operate Kendall School as a demonstration elementary school for the deaf. See section 4311 of this title.
Section 695a, Pub. L. 91–587, §2, Dec. 24, 1970, 84 Stat. 1579, defined “elementary school” and “construction”. See section 4351 of this title.
Section 695b, Pub. L. 91–587, §3, Dec. 24, 1970, 84 Stat. 1579, authorized appropriations for establishment and operation, including construction and equipment, of demonstration elementary school.
Section 695c, Pub. L. 91–587, §4, Dec. 24, 1970, 84 Stat. 1579, related to design and construction of facilities of demonstration elementary school.
Pub. L. 92–318, §161(b)(1), June 23, 1972, 86 Stat. 303, provided that: “The programs authorized by title VII of the Higher Education Act of 1965 [title VII of Pub. L. 89–329, which was classified to section 1132a et seq. of this title, prior to being amended generally by Pub. L. 105–244] shall be deemed to be a continuation of the comparable programs authorized by the Higher Education Facilities Act of 1963 [this chapter].”
Section, Pub. L. 88–204, §2, Dec. 16, 1963, 77 Stat. 363, related to congressional findings and declaration of policy.
Section 711, Pub. L. 88–204, title I, §101, Dec. 16, 1963, 77 Stat. 364; Pub. L. 89–329, title VII, §701(b), Nov. 8, 1965, 79 Stat. 1267; Pub. L. 89–752, §2(a), (b), Nov. 3, 1966, 80 Stat. 1240; Pub. L. 90–575, title IV, §401(a)(1), (2), Oct. 16, 1968, 82 Stat. 1059, authorized appropriations for grants for construction of undergraduate academic facilities.
Section 712, Pub. L. 88–204, title I, §102, Dec. 16, 1963, 77 Stat. 364; Pub. L. 89–752, §2(c), Nov. 3, 1966, 80 Stat. 1241 provided for allotment of funds.
Section 713, Pub. L. 88–204, title I, §103, Dec. 16, 1963, 77 Stat. 365; Pub. L. 89–329, title VII, §702(a)(1), (2), Nov. 8, 1965, 79 Stat. 1267; Pub. L. 89–752, §2(d), Nov. 3, 1966, 80 Stat. 1241; Pub. L. 90–575, title IV, §§401(a)(4), 406(a), Oct. 16, 1968, 82 Stat. 1059, 1061, provided for allotments for public community colleges and technical institutes, providing in former subsec. (a) for basis of computation and minimum amount; subsec. (b) availability of funds; subsec. (c) reallotment of unreserved funds at close of fiscal year and factors considered; subsec. (d) allotment ratio, specification and promulgation thereof, and definition of high school graduate.
Section 714, Pub. L. 88–204, title I, §104, Dec. 16, 1963, 77 Stat. 366; Pub. L. 89–329, title VII, §702(b)(1), (2), Nov. 8, 1965, 79 Stat. 1267; Pub. L. 89–752, §2(d), Nov. 3, 1966, 80 Stat. 1241; Pub. L. 90–575, title IV, §§401(a)(4), 406(a), Oct. 16, 1968, 82 Stat. 1059, 1061, provided for allotments for institutions of higher education other than public community colleges and technical institutes, providing in former subsec. (a) for considerations and determinations affecting allotments and minimum; subsec. (b) availability of funds; and subsec. (c) reallotment of unreserved funds at close of fiscal year and factors considered.
Section 715, Pub. L. 88–204, title I, §105, Dec. 16, 1963, 77 Stat. 367; Pub. L. 89–329, title VII, §702(a)(3), (4), (b)(3), (c)(1), Nov. 8, 1965, 79 Stat. 1267, 1268; Pub. L. 89–752, §3(a), Nov. 3, 1966, 80 Stat. 1241; Pub. L. 90–575, title IV, §401(a)(3), Oct. 16, 1968, 82 Stat. 1059, provided for State commissions and plans and authorized expenditures.
Section 716, Pub. L. 88–204, title I, §106, Dec. 16, 1963, 77 Stat. 368; Pub. L. 89–329, title VII, §701(a), Nov. 8, 1965, 79 Stat. 1266; Pub. L. 90–575, title IV, §402(a)(1), (b)(1), Oct. 16, 1968, 82 Stat. 1059, 1060, related to eligibility of institutions for grants and expansion of student enrollment capacity.
Section 717, Pub. L. 88–204, title I, §107, Dec. 16, 1963, 77 Stat. 368; Pub. L. 89–329, title VII, §702(c)(2), Nov. 8, 1965, 79 Stat. 1268; Pub. L. 90–575, title IV, §§402(a)(2), 405(a), Oct. 16, 1968, 82 Stat. 1059, 1061, provided basic criteria for determining priorities and Federal share.
Section 718, Pub. L. 88–204, title I, §108, Dec. 16, 1963, 77 Stat. 369; Pub. L. 90–575, title IV, §402(a)(3), Oct. 16, 1968, 82 Stat. 1059, related to applications for grants, providing in former subsec. (a) for submission of applications by institutions; subsec. (b) conditions for approval; and subsec. (c) amendments of applications.
Section 719, Pub. L. 88–204, title I, §109, Dec. 16, 1963, 77 Stat. 370, provided for reservation and payment of grant.
Section 720, Pub. L. 88–204, title I, §110, Dec. 16, 1963, 77 Stat. 370, provided for disapproval of State plans, notice and hearing, findings of Commissioner, and notification of non-eligibility.
Section 721, Pub. L. 88–204, title I, §111, Dec. 16, 1963, 77 Stat. 370, related to judicial review, providing in former subsec. (a) for appeal by State of Commissioner's final action to court of appeals; subsec. (b) findings of Commissioner conclusive if substantially supported, remand for taking further evidence, and new or modified findings conclusive if supported; subsec. (c) jurisdiction of court of appeals and review by Supreme Court.
Repeal effective July 1, 1972, see section 161(b)(2) of Pub. L. 92–318.
Section 731, Pub. L. 88–204, title II, §201, Dec. 16, 1963, 77 Stat. 371; Pub. L. 89–329, title VII, §§701(c), 702(d), Nov. 8, 1965, 79 Stat. 1267, 1268; Pub. L. 89–752, §4, Nov. 3, 1966, 80 Stat. 1242; Pub. L. 90–575, title IV, §401(b), Oct. 16, 1968, 82 Stat. 1059, authorized appropriations for grants for construction of graduate academic facilities.
Section 732, Pub. L. 88–204, title II, §202, Dec. 16, 1963, 77 Stat. 371; Pub. L. 90–575, title II, §291(b)(2), title IV, §405(b), Oct. 16, 1968, 82 Stat. 1050, 1061, related to grants, providing in subsec. (a) for eligible institutions and requirement of an application; subsec. (b) maximum allowable percentile of development cost; subsec. (c) action by panel of specialists required for application approval and considerations affecting approval; and subsec. (d) maximum amount of payments in any fiscal year.
Repeal effective July 1, 1972, see section 161(b)(2) of Pub. L. 92–318.
Section, Pub. L. 88–204, title II, §203, Dec. 16, 1963, 77 Stat. 371, established an Advisory Committee on Graduate Education.
Section 741, Pub. L. 88–204, title III, §301, Dec. 16, 1963, 77 Stat. 372, authorized the Commissioner to make loans for construction of academic facilities.
Section 742, Pub. L. 88–204, title III, §302, Dec. 16, 1963, 77 Stat. 372, prescribed the maximum amount of loans allowable within any State.
Section 743, Pub. L. 88–204, title III, §303, Dec. 16, 1963, 77 Stat. 372; Pub. L. 89–329, title VII, §§702(e), 703(a), Nov. 8, 1965, 79 Stat. 1268; Pub. L. 89–429, §4(a), May 24, 1966, 80 Stat. 166; Pub. L. 89–752, §5, Nov. 3, 1966, 80 Stat. 1242; Pub. L. 90–575, title IV, §§401(c), 402(a)(4), Oct. 16, 1968, 82 Stat. 1059, 1060, related to eligibility conditions, amounts and terms of loans, and authorization of appropriations.
Section 744, Pub. L. 88–204, title III, §304, Dec. 16, 1963, 77 Stat. 373; Pub. L. 89–752, §7, Nov. 3, 1966, 80 Stat. 1243, related to finality and conclusiveness of Commissioner's transactions and additional powers and duties of Commissioner.
Section 745, Pub. L. 88–204, title III, §305, as added Pub. L. 89–429, §4(b), May 24, 1966, 80 Stat. 166, related to Revolving Loan Fund.
Section, Pub. L. 88–204, title III, §306, as added Pub. L. 90–575, title IV, §403, Oct. 16, 1968, 82 Stat. 1060, related to annual interest grants, providing in: subsec. (a) for power of Commissioner; subsec. (b) for maximum period and amount and approval by Secretary; subsec. (c) for authorization of appropriations and limitation on aggregate amount of contracts; subsec. (d) for maximum amount of funds usable in one State; and subsec. (e) certain prerequisites and nature of financing.
Repeal effective July 1, 1972, see section 161(b)(3) of Pub. L. 92–318.
Section, Pub. L. 88–204, title IV, §401, Dec. 16, 1963, 77 Stat. 374; Pub. L. 89–329, title VII, §702(c)(3), (f), Nov. 8, 1965, 79 Stat. 1268; Pub. L. 89–752, §§6, 8, Nov. 3, 1966, 80 Stat. 1243; Pub. L. 90–575, title IV, §§402(a)(5), 405(a), Oct. 16, 1968, 82 Stat. 1060, 1061, defined “academic facilities”, “construction”, “equipment”, “development cost”, “Federal share”, “higher education building agency”, “institution of higher education”, “public community college and public technical institute”, “cooperative graduate center”, “cooperative graduate center board”, “high school”, “nonprofit educational institution”, “public educational institution”, and “State”.
Section, Pub. L. 88–204, title IV, §402, Dec. 16, 1963, 77 Stat. 377, related to Federal administration as to higher education facilities, providing in subsecs. (a) and (b) for delegation of functions by Commissioner and for utilization of services and facilities of other agencies and payment for services in advance or by way of reimbursement, now superseded by section 1231 of this title, and in subsec. (c) for appointment of advisory committees and for compensation ($75 per day limitation) and travel expenses of members of such advisory committees.
Section 753, Pub. L. 88–204, title IV, §403, Dec. 16, 1963, 77 Stat. 378, related to labor standards on projects assisted by grant or loan.
Section 754, Pub. L. 88–204, title IV, §404, Dec. 16, 1963, 77 Stat. 378, related to period of Federal interest in project and recovery of payments.
Section 755, Pub. L. 88–204, title IV, §405, Dec. 16, 1963, 77 Stat. 378, related to method of payment.
Section 756, Pub. L. 88–204, title IV, §406, Dec. 16, 1963, 77 Stat. 379, related to authorization of appropriations for administration.
Section, Pub. L. 88–204, title IV, §407, Dec. 16, 1963, 77 Stat. 379, prohibited Federal control of education (personnel, curriculum, methods of instruction, or administration), and was superseded by section 1232a of this title.
Section, Pub. L. 88–204, title IV, §408, as added Pub. L. 89–769, §7(a), Nov. 6, 1966, 80 Stat. 1318; amended Pub. L. 90–21, title I, §101, May 29, 1967, 81 Stat. 36; Pub. L. 90–575, title IV, §404, Oct. 16, 1968, 82 Stat. 1061; Pub. L. 91–606, title III, §301(g), Dec. 31, 1970, 84 Stat. 1759; Pub. L. 93–288, title VII, §702(g), formerly title VI, §602(g), May 22, 1974, 88 Stat. 164, renumbered title VII, §702(g), Pub. L. 103–337, div. C, title XXXIV, §3411(a)(1), (2), Oct. 5, 1994, 108 Stat. 3100, related to assistance for higher education construction in major disaster areas.
For general subject matter of sections 781 to 788, see section 955 of this title.
Section 781, Pub. L. 88–579, §2, Sept. 3, 1964, 78 Stat. 905, set forth a Congressional declaration of policy to encourage and promote the Nation's artistic and cultural progress by establishing a National Council on the Arts.
Section 782, Pub. L. 88–579, §3, Sept. 3, 1964, 78 Stat. 905, proscribed Federal control over policy or program determination in the administration of this chapter.
Section 783, Pub. L. 88–579, §4, Sept. 3, 1964, 78 Stat. 905, established in the Executive Office of the President a National Council on the Arts. See section 955 of this title and notes thereunder.
Section 784, Pub. L. 88–579, §5, Sept. 3, 1964, 78 Stat. 905; Pub. L. 89–209, §6(d)(1), (2), Sept. 29, 1965, 79 Stat. 849, 850, provided for appointment, composition, terms of office and vacancies in the National Council on the Arts.
Section 785, Pub. L. 88–579, §6, Sept. 3, 1964, 78 Stat. 906; Pub. L. 89–209, §5(d)(2)(A), Sept. 29, 1965, 79 Stat. 847; Pub. L. 90–83, §10(b), Sept. 11, 1967, 81 Stat. 223, provided for appointment of a Chairman of the National Council on the Arts, his term of office and reimbursement for his expenses.
Section 786, Pub. L. 88–579, §7, Sept. 3, 1964, 78 Stat. 906; Pub. L. 89–209, §6(d)(3), (4), Sept. 29, 1965, 79 Stat. 850, provided that the National Council on the Arts meet at the call of the Chairman at least twice a year, established 14 Council members as constituting a quorum, and set forth functions and duties of the Council.
Section 787, Pub. L. 88–579, §8, Sept. 3, 1964, 78 Stat. 907, provided for compensation of Council members.
Section 788, Pub. L. 88–579, §9, Sept. 3, 1964, 78 Stat. 907, authorized appointment of and compensation for secretarial, clerical, and other staff and further authorized procurement by the Chairman of temporary and intermittent services.
Repeal effective July 1, 1970, see section 5(d)(3)(B) of Pub. L. 91–346.
Section, Pub. L. 88–579, §10, Sept. 3, 1964, 78 Stat. 907; Pub. L. 89–125, Aug. 13, 1965, 79 Stat. 518, authorized $150,000 per annum to be appropriated to the Council to carry out the purpose of this chapter. See section 960 of this title.
Section was also repealed by Pub. L. 91–346, §5(d)(3)(B), July 20, 1970, 84 Stat. 445.
Section, Pub. L. 88–579, §11, Sept. 3, 1964, 78 Stat. 907, provided that this chapter would not invalidate any act of Congress or Executive order vesting authority in the Commission of Fine Arts or any other Federal advisory body nor would this chapter authorize the National Council on the Arts to undertake any duty or responsibility which belongs to any other Federal advisory body established as of Sept. 3, 1964.
Repeal effective July 1, 1970, see section 5(d)(3)(B) of Pub. L. 91–346.
The Congress finds that the rapid expansion of the Nation's urban areas and urban population has caused severe problems in urban and suburban development and created a national need to (1) provide special training in skills needed for economic and efficient community development, and (2) support research in new or improved methods of dealing with community development problems.
It is the purpose of this chapter to provide fellowships for the graduate training of professional city and regional planning, management, and housing specialists, and professionally trained personnel with a general capacity in urban affairs and problems: to make grants to and contracts with institutions of higher education (or combinations of such institutions) to assist them in planning, developing, strengthening, improving, or carrying out programs or projects for the preparation of graduate or professional students to enter the public service; and to assist and encourage the States and localities, in cooperation with public and private universities and colleges and urban centers and with business firms and associations, labor unions, and other interested associations and organizations, to (1) organize, initiate, develop, and expand programs which will provide special training in skills needed for economic and efficient community development to those technical, professional, and other persons with the capacity to master and employ such skills who are, or are training to be, employed by a governmental or public body which has responsibility for community development, or by a private nonprofit organization which is conducting or has responsibility for housing and community development programs, and (2) support State and local research that is needed in connection with housing programs and needs, public improvement programing, code problems, efficient land use, urban transportation, and similar community development problems.
(Pub. L. 88–560, title VIII, §801, Sept. 2, 1964, 78 Stat. 802; Pub. L. 90–448, title XVII, §1707(a), Aug. 1, 1968, 82 Stat. 605; Pub. L. 91–152, title III, §307, Dec. 24, 1969, 83 Stat. 392; Pub. L. 93–383, title IV, §402(a), Aug. 22, 1974, 88 Stat. 691.)
Pub. L. 93–383, §402, provided for amendments to title VIII of the Housing and Urban Development Act of 1964. The amendments of the enumerated sections of such title VIII have been executed to comparable sections of title VIII of the Housing Act of 1964 as the probable intent of Congress.
1974—Subsec. (b). Pub. L. 93–383 expanded purposes of chapter to include graduate training in regional planning and for training of personnel with a general capacity in urban affairs and problems and authorizing grants and contracts with institutions of higher education for training of graduate or professional students.
1969—Subsec. (a). Pub. L. 91–152 inserted a comma before “and (2)”.
Subsec. (b). Pub. L. 91–152 inserted provision that it is the purpose of this chapter to grant fellowships for the graduate training of professional city planning and urban and housing technicians and specialists.
1968—Subsec. (b). Pub. L. 90–448 provided for cooperation with business firms and associations, labor unions, and other interested associations or organizations, included employment by a private nonprofit organization which is conducting or has responsibility for housing and community development programs, and substituted “technical, professional, and other persons with the capacity to master and employ such skills” for “technical and professional people.”
The Secretary is authorized to provide fellowships for the graduate training of professional city planning, management, and housing specialists, and other persons who wish to develop a general capacity in urban affairs and problems as herein provided. Persons shall be selected for such fellowships solely on the basis of ability and upon the recommendation of the Urban Studies Fellowship Advisory Board established pursuant to subsection (b) of this section. Fellowships shall be solely for training in public and private nonprofit institutions of higher education having programs of graduate study in the field of city planning or in related fields (including architecture, civil engineering, economics, municipal finance, public administration, urban affairs, and sociology) which programs are oriented to training for careers in city and regional planning, housing, urban renewal, and community development.
There is hereby established the Urban Studies Fellowship Advisory Board (hereinafter referred to as the “Board”), which shall consist of nine members to be appointed by the Secretary as follows: Three from public institutions of higher learning and three from private nonprofit institutions of higher education, who are the heads of departments which provide academic courses appropriately related to the fields referred to in subsection (a) of this section, and three from national organizations which are directly concerned with problems relating to urban, regional, and community development. The Board shall meet upon the request of the Secretary and shall make recommendations to him with respect to persons to be selected for fellowships under this section. Members of the Board shall be entitled to receive transportation expenses and a per diem in lieu of subsistence as authorized for members of advisory committees created pursuant to section 1701h of title 12.
(Pub. L. 88–560, title VIII, §802, Sept. 2, 1964, 78 Stat. 802; Pub. L. 89–117, title XI, §1103(a), Aug. 10, 1965, 79 Stat. 503; Pub. L. 90–19, §21(d), May 25, 1967, 81 Stat. 26; Pub. L. 90–448, title XVII, §1707(a)(2), (3), Aug. 1, 1968, 82 Stat. 606; Pub. L. 91–152, title III, §307, Dec. 24, 1969, 83 Stat. 392; Pub. L. 93–383, title IV, §402(b), Aug. 22, 1974, 88 Stat. 691.)
Pub. L. 93–383, §402, provided for amendments to title VIII of the Housing and Urban Development Act of 1964. The amendments of the enumerated sections of such title VIII have been executed to comparable sections of title VIII of the Housing Act of 1964 as the probable intent of Congress.
1974—Subsec. (a). Pub. L. 93–383 expanded authority of Secretary to include fellowships in graduate training in city management and for persons wishing to develop a general capacity in urban affairs and added urban affairs to authorized fields of study.
1969—Pub. L. 91–152 substituted provisions authorizing the Secretary to grant fellowships solely on the basis of ability for training in city planning at public and private nonprofit institutions of higher education and establishing the Urban Studies Fellowship Advisory Board for provisions authorizing the Secretary to make matching grants to States to assist in programs providing special training in community development and to support local research and setting forth the provisions required in any plan submitted to the Secretary in order to obtain grants. The former provisions of this section are now set forth in section 803 of this title with minor amendments.
1968—Subsec. (a)(1). Pub. L. 90–448 substituted “technical, professional, and other persons with the capacity to master and employ such skills” for “technical and professional people”, and inserted provisions to include employment by a private nonprofit organization which is conducting or has responsibility for housing and community development programs.
1967—Subsecs. (a), (b). Pub. L. 90–19 substituted “Secretary” for “Administrator” wherever appearing.
1965—Subsec. (d). Pub. L. 89–117 substituted “$30,000,000” for “$10,000,000”.
Advisory boards in existence on Jan. 5, 1973, to terminate not later than the expiration of the 2-year period following Jan. 5, 1973, 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 the Congress, its duration is otherwise provided for 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.
Subject to the provisions of this chapter and in accordance with regulations prescribed by him, the Secretary may make matching grants to States to assist in—
(1) organizing, initiating, developing, or expanding programs to provide special training in skills needed for economic and efficient community development to those technical, professional, and other persons with the capacity to master and employ such skills who are, or are training to be, employed by a governmental or public body which has responsibilities for community development, or by a private nonprofit organization which is conducting or has responsibility for housing and community development programs; and
(2) supporting State and local research that is needed in connection with housing programs and needs, public improvement programing, code problems, efficient land use, urban transportation, and similar community development problems, and collecting, collating, and publishing statistics and information relating to such research.
Grants may be made under subsection (a) of this section to support (1) the training of persons, especially persons of low income, in acquiring the skills needed in the management of housing for low- and moderate-income persons, and (2) research and the dissemination of information with respect to the problems involved in the management of housing for low- and moderate-income persons.
No grants may be made to a State under this section unless the Secretary has approved a plan for the State which—
(1) sets forth the proposed use of the funds and the objectives to be accomplished;
(2) explains the method by which the required amounts from non-Federal sources will be obtained;
(3) provides such fiscal control and fund accounting procedures as may be reasonably necessary to assure proper disbursement of, and accounting for, Federal funds paid to the State under this section;
(4) designates an officer or agency of the State government who has responsibility and authority for the administration of a statewide research and training program as the officer or agency with responsibility and authority for the execution of the State's program under this section; and
(5) provides that such officer or agency will make such reports to the Secretary, in such form, and containing such information, as may be reasonably necessary to enable the Secretary to perform his duties under this section.
No grant may be made under this section for any use unless an amount at least equal to such grant is made available from non-Federal sources for the same purpose and for concurrent use.
(Pub. L. 88–560, title VIII, §803, Sept. 2, 1964, 78 Stat. 803; Pub. L. 89–117, title XI, §1103(b), Aug. 10, 1965, 79 Stat. 503; Pub. L. 91–152, title III, §307, Dec. 24, 1969, 83 Stat. 393; Pub. L. 91–609, title IX, §904, Dec. 31, 1970, 84 Stat. 1809.)
1970—Subsecs. (b) to (d). Pub. L. 91–609 added subsec. (b) and redesignated former subsecs. (b) and (c) as (c) and (d), respectively.
1969—Pub. L. 91–152 substituted provisions authorizing the Secretary to make matching grants to States to assist in programs providing special training in community development and to support State and local research, provisions setting forth the required contents of any plan submitted to the Secretary in order to obtain grants, and provisions requiring the matching from non-Federal sources of any grant made pursuant to this section, for provisions requiring not more than 10 per centum of the total amount appropriated be used for making grants to any one State. The former provisions of this section are now set forth in section 804 of this title with minor amendments.
1965—Pub. L. 89–117 substituted “appropriated for the purposes of this subchapter” for “authorized to be appropriated by section 802(d) of this title”.
The Secretary is authorized to make grants to or contracts with institutions of higher education, or combinations of such institutions, to assist them in planning, developing, strengthening, improving, or carrying out programs or projects (1) for the preparation of graduate or professional students in the fields of city and regional planning and management, housing, and urban affairs, or (2) for research into, or development or demonstration of, improved methods of education for these professions. Such grants or contracts may include payment of all or part of the cost of programs or projects.
(1) A grant or contract authorized by this section shall be made only upon application to the Secretary at such time or times and containing such information as he may prescribe, except that no such application shall be approved unless it—
(A) sets forth programs, activities, research, or development for which a grant is authorized under this section;
(B) provides 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 applicant under this subsection; and
(C) provides for making such reports, in such form and containing such information, as the Secretary may require to carry out his 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.
(2) Payments under this section may be used, in accordance with regulations of the Secretary, and subject to the terms and conditions set forth in an application approved under paragraph (1), to pay part of the compensation of students employed in professions referred to in subsection (a)(1) of this section, except students employed in any branch of the Government of the United States, as part of a program for which a grant has been approved pursuant to this subsection.
(Pub. L. 88–560, title VIII, §804, as added Pub. L. 93–383, title IV, §402(c)(2), Aug. 22, 1974, 88 Stat. 692.)
Pub. L. 93–383, §402, provided for amendments to title VIII of the Housing and Urban Development Act of 1964. The amendments of the enumerated sections of such title VIII have been executed to comparable sections of title VIII of the Housing Act of 1964 as the probable intent of Congress.
Not more than 10 per centum of the total amount appropriated for the purposes of this chapter may be used for making grants to any one State.
(Pub. L. 88–560, title VII, §805, formerly §804, Sept. 2, 1964, 78 Stat. 803; Pub. L. 90–19, §21(d), May 25, 1967, 81 Stat. 26; Pub. L. 91–152, title III, §307, Dec. 24, 1969, 83 Stat. 394; renumbered §805, Pub. L. 93–383, title IV, §402(c)(1), Aug. 22, 1974, 88 Stat. 692.)
1969—Pub. L. 91–152 substituted provisions that not more than 10 per centum of the total amount appropriated be used for making grants to any one State for provisions that authorized the Secretary to provide technical assistance, etc., to State and local bodies. The former provisions of the section are now set forth in section 805 of this title with minor amendments.
1967—Pub. L. 90–19 substituted “Secretary” for “Administrator” wherever appearing.
In order to carry out the purpose of this chapter, the Secretary is authorized to provide technical assistance to State and local governmental or public bodies and to undertake such studies and publish and distribute such information, either directly or by contract, as he shall determine to be desirable. Nothing contained in this chapter shall limit any authority of the Secretary under any other provision of law.
(Pub. L. 88–560, title VIII, §806, formerly §805, Sept. 2, 1964, 78 Stat. 803; Pub. L. 90–19, §21(e), May 25, 1967, 81 Stat. 26; Pub. L. 90–448, title XVII, §1707(b), Aug. 1, 1968, 82 Stat. 606; Pub. L. 91–152, title III, §307, Dec. 24, 1969, 83 Stat. 394; renumbered §806, Pub. L. 93–383, title IV, §402(c)(1), Aug. 22, 1974, 88 Stat. 692.)
1969—Pub. L. 91–152 substituted provisions authorizing the Secretary to provide technical assistance, etc., to State and local bodies to carry out the purposes of this chapter for provisions defining “State” and “Secretary” and authorizing to be appropriated such sums as may be necessary for administrative and other expenses. The former provisions of this section are now set forth in section 807 of this title with minor amendments.
1968—Subsec. (a). Pub. L. 90–448 inserted “Guam, American Samoa, the Trust Territory of the Pacific Islands,”.
1967—Subsec. (a). Pub. L. 90–19 substituted definition of “Secretary” meaning the Secretary of Housing and Urban Development for “Administrator” meaning the Housing and Home Finance Administrator.
There is authorized to be appropriated for the purpose of making grants and providing fellowships under this chapter, without fiscal year limitation, not to exceed $30,000,000, which amount shall be increased by $3,500,000 on July 1, 1974, and by $3,500,000 on July 1, 1975. Any amounts appropriated under this section shall remain available until expended.
(Pub. L. 88–560, title VIII, §807, formerly §806, as added Pub. L. 91–152, title III, §307, Dec. 24, 1969, 83 Stat. 394; renumbered §807 and amended Pub. L. 93–383, title IV, §402(c)(1), (d), Aug. 22, 1974, 88 Stat. 692.)
Pub. L. 93–383, §402, provided for amendments to title VIII of the Housing and Urban Development Act of 1964. The amendments of the enumerated sections of such title VIII have been executed to comparable sections of title VIII of the Housing Act of 1964 as the probable intent of Congress.
1974—Pub. L. 93–383, §402(d), inserted provisions increasing amount by $3,500,000 on July 1, 1974, and by $3,500,000 on July 1, 1975.
(a) As used in this chapter the term “State” means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Virgin Islands; and the term “Secretary” means the Secretary of Housing and Urban Development.
(b) There are authorized to be appropriated such sums as may be necessary for administrative and other expenses in carrying out this chapter.
(Pub. L. 88–560, title VIII, §808, formerly §807, as added Pub. L. 91–152, title III, §307, Dec. 24, 1969, 83 Stat. 394; renumbered §808, Pub. L. 93–383, title IV, §402(c)(1), Aug. 22, 1974, 88 Stat. 692.)
This chapter formerly consisted of subchapters I and II prior to its general reorganization by Pub. L. 91–152, title III, §307, Dec. 24, 1969, 83 Stat. 394. Former subchapter II, consisting of section 811, Pub. L. 88–560, VIII, §810, Sept. 2, 1964, 78 Stat. 803; Pub. L. 90–19, §21(d), (f), May 25, 1967, 81 Stat. 26; Pub. L. 90–66, Aug. 19, 1967, 81 Stat. 167, was omitted in the general reorganization of this chapter by Pub. L. 91–152. For subject matter of former section 811, see section 802 of this title.
For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.
Titles I to IX of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, Apr. 11, 1965, 79 Stat. 27, as amended, which were classified to this chapter (§821 et seq.), subchapter II (§241a et seq.) of chapter 13, and subchapter I (§1801 et seq.) of chapter 40 of this title, were amended generally by Pub. L. 95–561, Nov. 1, 1978, 92 Stat. 2152, known as the Education Amendments of 1978, and the Elementary and Secondary Education Act of 1965 was transferred to chapter 47 (§2701 et seq.) of this title. Subsequently, that act was amended generally by Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3519, and transferred to chapter 70 (§6301 et seq.) of this title.
Sections were omitted in the general revision of title II of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, Apr. 11, 1965, 79 Stat. 36, by Pub. L. 95–561, title II, §201, Nov. 1, 1978, 92 Stat. 2201.
Section 821, Pub. L. 89–10, title II, §201, Apr. 11, 1965, 79 Stat. 36; Pub. L. 89–750, title I, §121, Nov. 3, 1966, 80 Stat. 1199; Pub. L. 90–247, title III, §301(b), Jan. 2, 1968, 81 Stat. 813; Pub. L. 91–230, title I, §121(a), Apr. 13, 1970, 84 Stat. 130; Pub. L. 93–380, title I, §102(a), Aug. 21, 1974, 88 Stat. 501; Pub. L. 95–112, §2(b)(1), Sept. 24, 1977, 91 Stat. 911, authorized appropriations for grants for the acquisition of books and school library resources for fiscal years ending prior to Oct. 1, 1979.
Section 822, Pub. L. 89–10, title II, §202, Apr. 11, 1965, 79 Stat. 36; Pub. L. 89–750, title I, §122, Nov. 3, 1966, 80 Stat. 1199; Pub. L. 90–247, title I, §121, Jan. 2, 1968, 81 Stat. 788; Pub. L. 91–230, title I, §121(b), Apr. 13, 1970, 84 Stat. 130; Pub. L. 92–318, title IV, §421(b)(1)(A), June 23, 1972, 86 Stat. 341; Pub. L. 93–380, title I, §102(b), title VIII, §843(a), Aug. 21, 1974, 88 Stat. 502, 611, authorized additional appropriations for the territories and provided for the allotment of funds to States.
Section 823, Pub. L. 89–10, title II, §203, Apr. 11, 1965, 79 Stat. 37; Pub. L. 89–750, title I, §123, Nov. 3, 1966, 80 Stat. 1200; Pub. L. 92–318, title V, §509(a)(1), June 23, 1972, 86 Stat. 353, set out the requirements for State plans.
Section 824, Pub. L. 89–10, title II, §204, Apr. 11, 1965, 79 Stat. 38; Pub. L. 91–230, title I, §121(c), Apr. 13, 1970, 84 Stat. 130; Pub. L. 94–482, title V, §501(c), Oct. 12, 1976, 90 Stat. 2236; Pub. L. 95–112, §2(b)(2), Sept. 24, 1977, 91 Stat. 911, made provision for payments to States.
Section 825, Pub. L. 89–10, title II, §205, Apr. 11, 1965, 79 Stat. 38, provided for public control of furnished materials.
Section 826, Pub. L. 89–10, title II, §206, Apr. 11, 1965, 79 Stat. 39, related to the administration of State plans.
Section 827, Pub. L. 89–10, title II, §207, Apr. 11, 1965, 79 Stat. 39, related to judicial review of the Commissioner's final action.
Section, Pub. L. 89–10, title III, §301, Apr. 11, 1965, 79 Stat. 39; Pub. L. 89–750, title I, §131, Nov. 3, 1966, 80 Stat. 1201; Pub. L. 90–247, title I, §131, Jan. 2, 1968, 81 Stat. 788; Pub. L. 91–230, title I, §131(a)(1), Apr. 13, 1970, 84 Stat. 130; Pub. L. 93–380, title I, §103(a), Aug. 21, 1974, 88 Stat. 502; Pub. L. 94–482, title V, §501(a)(2), Oct. 12, 1976, 90 Stat. 2235; Pub. L. 95–112, §2(c)(1), Sept. 24, 1977, 91 Stat. 911, which authorized appropriations for the making of grants for supplementary educational centers and services for fiscal years ending prior to Oct. 1, 1979, was omitted in the general revision of title III of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title III, Apr. 11, 1965, 79 Stat. 39, by Pub. L. 95–561, title III, §301, Nov. 1, 1978, 92 Stat. 2210.
Pub. L. 91–230, title I, §131(c), Apr. 13, 1970, 84 Stat. 141, provided that any appropriation for the purposes of title V of the National Defense Education Act of 1958, section 481 et seq. of this title, for any fiscal year ending after June 30, 1970, was to be deemed to have been appropriated pursuant to this section.
Sections were omitted in the general revision of title III of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title III, Apr. 11, 1965, 79 Stat. 39, by Pub. L. 95–561, title III, §301, Nov. 1, 1978, 92 Stat. 2210.
Section 842, Pub. L. 89–10, title III, §302, Apr. 11, 1965, 79 Stat. 40; Pub. L. 89–750, title I, §132, Nov. 3, 1966, 80 Stat. 1201; Pub. L. 90–247, title I, §131, Jan. 2, 1968, 81 Stat. 789; Pub. L. 91–230, title I, §131(a)(1), Apr. 13, 1970, 84 Stat. 131; Pub. L. 92–318, title IV, §421(b)(1)(B), June 23, 1972, 86 Stat. 341; Pub. L. 93–380, title I, §103(b), title VIII, §843(a), Aug. 21, 1974, 88 Stat. 502, 611, provided for the allotment of appropriated funds for supplementary educational centers and services.
Section 843, Pub. L. 89–10, title III, §303, Apr. 11, 1965, 79 Stat. 40; Pub. L. 89–750, title I, §152(b), Nov. 3, 1966, 80 Stat. 1203; Pub. L. 90–247, title I, §131, Jan. 2, 1968, 81 Stat. 790; Pub. L. 91–230, title I, §131(a)(1), Apr. 13, 1970, 84 Stat. 132; Pub. L. 92–318, title V, §509(a)(2), June 23, 1972, 86 Stat. 353, related to the uses of Federal funds for supplementary educational centers and services.
Section 844, Pub. L. 89–10, title III, §304, Apr. 11, 1965, 79 Stat. 41; Pub. L. 89–750, title I, §§133, 134, Nov. 3, 1966, 80 Stat. 1201, 1202; Pub. L. 90–247, title I, §131, Jan. 2, 1968, 81 Stat. 791; Pub. L. 91–230, title I, §131(a)(1), Apr. 13, 1970, 84 Stat. 133, related to the content and form of applications for grant funds for supplementary educational centers and services.
Section 844a, Pub. L. 89–10, title III, §305, as added Pub. L. 90–247, title I, §131, Jan. 2, 1968, 81 Stat. 792; amended Pub. L. 91–230, title I, §131(a)(1), Apr. 13, 1970, 84 Stat. 135; Pub. L. 93–380, title I, §103(c), title IV, §402(c)(2)(i), Aug. 21, 1974, 88 Stat. 502, 546; Pub. L. 94–273, §3(8), Apr. 21, 1976, 90 Stat. 376; Pub. L. 95–112, §2(c)(2), Sept. 24, 1977, 91 Stat. 911, set out the requisites for State plans for supplementary educational centers and services.
A prior section 305 of Pub. L. 89–10 was renumbered section 307 by section 131 of Pub. L. 90–247 and was set out as section 845 of this title.
Section, Pub. L. 89–10, title III, §306, as added Pub. L. 90–247, title I, §131, Jan. 2, 1968, 81 Stat. 796; amended Pub. L. 91–230, title I, §131(a)(1), Apr. 13, 1970, 84 Stat. 139, provided for special programs and projects.
Repeal effective July 1, 1975, see section 402(c)(2) of Pub. L. 93–380.
Section 845, Pub. L. 89–10, title III, §307, formerly §305, Apr. 11, 1965, 79 Stat. 43, renumbered and amended Pub. L. 90–247, title I, §131, Jan. 2, 1968, 81 Stat. 796; Pub. L. 91–230, title I, §131(a)(1), Apr. 13, 1970, 84 Stat. 139; Pub. L. 93–380, title I, §103(d), title IV, §402(c)(2)(iii), title VIII, §843(a)(2), Aug. 21, 1974, 88 Stat. 502, 546, 611; Pub. L. 94–482, title III, §323(a)(2), Oct. 12, 1976, 90 Stat. 2217, which related to the payments to States to carry out plans for supplementary educational centers and services, was omitted in the general revision of title III of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title III, Apr. 11, 1965, 79 Stat. 39, by Pub. L. 95–561, title III, §301, Nov. 1, 1978, 92 Stat. 2210.
Section 846, Pub. L. 89–10, title III, §306, Apr. 11, 1965, 79 Stat. 43, required the establishment of an Advisory Committee on Supplementary Educational Centers and Services in the Office of Education, specified its membership and functions and provided for the compensation of its members, and was omitted in the general reorganization of this subchapter by Pub. L. 90–247.
Sections 847 and 847a were omitted in the general revision of title III of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title III, Apr. 11, 1965, 79 Stat. 39, by Pub. L. 95–561, title III, §301, Nov. 1, 1978, 92 Stat. 2210.
Section 847, Pub. L. 89–10, title III, §308, formerly §307, Apr. 11, 1965, 79 Stat. 44, renumbered Pub. L. 90–247, title I, §131, Jan. 2, 1968, 81 Stat. 797; amended Pub. L. 91–230, title I, §131(a)(1), Apr. 13, 1970, 84 Stat. 140, related to the recovery of payments to supplementary educational centers and services.
Section 847a, Pub. L. 89–10, title III, §309, as added Pub. L. 90–247, title I, §131, Jan. 2, 1968, 81 Stat. 797; amended Pub. L. 91–230, title I, §131(a)(1), Apr. 13, 1970, 84 Stat. 140; Pub. L. 93–380, title VIII, §845(b), Aug. 21, 1974, 88 Stat. 612; Pub. L. 94–273, §3(8), Apr. 21, 1976, 90 Stat. 376; Pub. L. 95–112, §2(c)(3), Sept. 24, 1977, 91 Stat. 911, provided for the establishment of a National Advisory Council on Supplementary Centers and Services.
Section 848, Pub. L. 89–10, title III, §310, formerly §308, Apr. 11, 1965, 79 Stat. 44, renumbered Pub. L. 90–247, title I, §131, Jan. 2, 1968, 81 Stat. 798, which related to labor standards for grant-assisted construction projects, was eliminated in the general amendment of this subchapter by section 131(a)(1) of Pub. L. 91–230. See section 1232b of this title.
Sections were omitted in the general revision of title V of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title V, Apr. 11, 1965, 79 Stat. 47, by Pub. L. 95–561, title V, §501, Nov. 1, 1978, 92 Stat. 2240.
Section 861, Pub. L. 89–10, title V, §501, Apr. 11, 1965, 79 Stat. 47; Pub. L. 89–750, title I, §151, Nov. 3, 1966, 80 Stat. 1203; Pub. L. 90–247, title I, §141, Jan. 2, 1968, 81 Stat. 799; Pub. L. 91–230, title I, §§141, 143(a)(4)(B), Apr. 13, 1970, 84 Stat. 141, 142; Pub. L. 93–380, title I, §104(a), Aug. 21, 1974, 88 Stat. 503; Pub. L. 95–112, §2(e)(1), Sept. 24, 1977, 91 Stat. 911, authorized appropriations for grants to strengthen State departments of education for fiscal years ending prior to Oct. 1, 1979.
Section 862, Pub. L. 89–10, title V, §502, Apr. 11, 1965, 79 Stat. 48; Pub. L. 89–750, title I, §152(c), Nov. 3, 1966, 80 Stat. 1203; Pub. L. 90–247, title I, §§142(a), 143, 145(b)(1), (2), Jan. 2, 1968, 81 Stat. 799, 800; Pub. L. 91–230, title I, §143(a)(4)(B), Apr. 13, 1970, 84 Stat. 142; Pub. L. 93–380, title VIII, §843(a)(2), (3), Aug. 21, 1974, 88 Stat. 611, related to the apportionment of grant funds among States.
Section 863, Pub. L. 89–10, title V, §503, Apr. 11, 1965, 79 Stat. 49; Pub. L. 89–750, title I, §§152(a), 154, Nov. 3, 1966, 80 Stat. 1203, 1204; Pub. L. 90–247, title I, §§144, 145(a), Jan. 2, 1968, 81 Stat. 799, 800; Pub. L. 91–230, title I, §§142(a), 143(a)(4)(C), Apr. 13, 1970, 84 Stat. 142; Pub. L. 92–318, title V, §509(a)(3), June 23, 1972, 86 Stat. 353, related to programs and activities covered.
Section 864, Pub. L. 89–10, title V, §504, Apr. 11, 1965, 79 Stat. 50; Pub. L. 89–750, title I, §152(d), Nov. 3, 1966, 80 Stat. 1203; Pub. L. 91–230, title I, §143(a)(4)(B), Apr. 13, 1970, 84 Stat. 142, related to the findings prerequisite to the approval of applications for apportioned funds.
Section 865, Pub. L. 89–10, title V, §505, Apr. 11, 1965, 79 Stat. 51; Pub. L. 90–247, title I, §§145(b)(3), 146, Jan. 2, 1968, 81 Stat. 800, related to special project grants.
Sections were omitted in the general revision of title V of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title V, Apr. 11, 1965, 79 Stat. 47, by Pub. L. 95–561, title V, §501, Nov. 1, 1978, 92 Stat. 2240.
Section 866, Pub. L. 89–10, title V, §521, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 142; amended Pub. L. 93–380, title I, §104(b), Aug. 21, 1974, 88 Stat. 503; Pub. L. 95–112, §2(e)(2), Sept. 24, 1977, 91 Stat. 911, authorized appropriations for grants to local educational agencies for fiscal years ending prior to Oct. 1, 1979.
A prior section 866, Pub. L. 89–10, title V, §506, Apr. 11, 1965, 79 Stat. 51, provided for payments to States: installments; advances or reimbursement; and adjustments, prior to repeal by Pub. L. 91–230, title I, §143(a)(4)(A), Apr. 13, 1970, 84 Stat. 142.
Section 866a, Pub. L. 89–10, title V, §522, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 143; amended Pub. L. 93–380, title VIII, §843(a)(2), (3), Aug. 21, 1974, 88 Stat. 611, related to the apportionment of grant funds among States.
Section 866b, Pub. L. 89–10, title V, §523, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 143, related to grants from apportioned funds and to the programs and activities covered.
Section 866c, Pub. L. 89–10, title V, §524, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 144, related to the approval of applications by the Commissioner.
Section 866d, Pub. L. 89–10, title V, §525, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 144, related to the approval of applications by State educational agencies.
Sections were omitted in the general revision of title V of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title V, Apr. 11, 1965, 79 Stat. 47, by Pub. L. 95–561, title V, §501, Nov. 1, 1978, 92 Stat. 2240.
Section 867, Pub. L. 89–10, title V, §531, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 145; amended Pub. L. 93–380, title I, §104(c), title VIII, §843(a)(2), (3), Aug. 21, 1974, 88 Stat. 503, 611; Pub. L. 95–112, §2(e)(3), Sept. 24, 1977, 91 Stat. 911, authorized the appropriation of funds for comprehensive planning and evaluation grants for fiscal years ending prior to Oct. 1, 1979.
A prior section 867, Pub. L. 89–10, title V, §507, Apr. 11, 1965, 79 Stat. 51, as amended, was renumbered §553 by Pub. L. 91–230, title I, §143(a)(3), Apr. 13, 1970, 84 Stat. 142, and was classified to section 869b of this title which was repealed by Pub. L. 91–648, title IV, §403, Jan. 5, 1971, 84 Stat. 1925.
Section 867a, Pub. L. 89–10, title V, §532, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 146, related to comprehensive planning and evaluation grants and to the establishment and functioning of State planning and evaluation agencies.
Section 867b, Pub. L. 89–10, title V, §533, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 147, related to the form and content of grant applications.
Section 867c, Pub. L. 89–10, title V, §534, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 148, related to the required annual reports.
Section, Pub. L. 89–10, title V, §541, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 148; amended Pub. L. 95–112, §2(e)(4), Sept. 24, 1977, 91 Stat. 912, which provided for the establishment of a National Council on Quality in Education and State advisory councils, was omitted in the general revision of title V of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title V, Apr. 11, 1965, 79 Stat. 47, by Pub. L. 95–561, title V, §501, Nov. 1, 1978, 92 Stat. 2240.
A prior section 868, Pub. L. 89–10, title V, §508, Apr. 11, 1965, 79 Stat. 54, which provided for administration of State plan, was repealed by Pub. L. 91–230, title I, §143(a)(4)(A), Apr. 13, 1970, 84 Stat. 142.
Provisions similar to those comprising subsecs. (a)(1), (2)(A), (E), and (a)(3) of this section were contained in section 510(a), (b), (d) of Pub. L. 89–10, title V, Apr. 11, 1965, 79 Stat. 54, which was classified to section 870(a), (b), (d) of this title, prior to repeal of section 870 and general amendment of title V by section 143(a)(4)(A) and (D) of Pub. L. 91–230, respectively.
Section 869, Pub. L. 89–10, title V, §551, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 150, which related to the administration of plans, to hearings, and to the steps following a failure to comply with the provisions related of this subchapter, was omitted in the general revision of title V of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title V, Apr. 11, 1965, 79 Stat. 47, by Pub. L. 95–561, title V, §501, Nov. 1, 1978, 92 Stat. 2240.
A prior section 869, Pub. L. 89–10, title V, §509, Apr. 11, 1965, 79 Stat. 54, which provided for judicial review, was repealed by Pub. L. 91–230, title I, §143(a)(4)(A), Apr. 13, 1970, 84 Stat. 142.
Provisions similar to those comprising this section were contained in section 508 of Pub. L. 89–10, title V, Apr. 11, 1965, 79 Stat. 54, which was classified to section 868 of this title, prior to repeal of section 868 and general amendment of title V by section 143(a)(4)(A) and (D) of Pub. L. 91–230, respectively.
Section 869a, Pub. L. 89–10, title V, §552, as added Pub. L. 91–230, title I, §143(a)(4)(D), Apr. 13, 1970, 84 Stat. 151, which provided for judicial review of Commissioner's decision concerning approval of application or withholding of payments, was omitted in the general revision of title V of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title V, Apr. 11, 1965, 79 Stat. 47, by Pub. L. 95–561, title V, §501, Nov. 1, 1978, 92 Stat. 2240.
Provisions similar to those comprising this section were contained in section 509 of Pub. L. 89–10, title V, Apr. 11, 1965, 79 Stat. 54, which was classified to section 869 of this title, prior to repeal of section 869 and general amendment of title V by section 143(a)(4)(A) and (D) of Pub. L. 91–230, respectively.
Section, Pub. L. 89–10, title V, §553, formerly §507, Apr. 11, 1965, 79 Stat. 51, amended Pub. L. 89–750, title I, §153, Nov. 3, 1966, 80 Stat. 1204; renumbered and amended Pub. L. 91–230, title I, §143(a)(3), Apr. 13, 1970, 84 Stat. 142, relating to interchange of personnel of Office of Education with States, provided in subsec. (a), definitions; subsec. (b), authorization for interchange and period of assignment; subsec. (c), Federal personnel assigned to States, compensation, continuation of Federal employment benefits, and disability; subsec. (d), reimbursement by States for services of assigned Federal personnel; subsec. (e), travel expenses of assigned Federal personnel; subsec. (f), State personnel assigned duty with Office of Education; subsec. (g), conflict of interest, disability of State personnel assigned with Office of Education; subsec. (h), travel expenses of assigned personnel; and subsec. (i), assignments of personnel subject to regulations of Commissioner.
Repeal effective sixty days after Jan. 5, 1971, see section 404 of Pub. L. 91–648, set out as an Effective Date note under section 3371 of Title 5, Government Organization and Employees.
Section, Pub. L. 89–10, title V, §510, Apr. 11, 1965, 79 Stat. 54, related to the Advisory Council on State Departments of Education, providing in: subsec. (a) for its appointment by the Secretary within ninety days after April 11, 1965 and its functions; subsec. (b) for the membership and their qualifications; subsec. (c) for engagement of technical, clerical, and other assistance and access to pertinent data of the Department; subsec. (d) for an annual report to the Secretary and transmittal of it to the President and Congress; and (e) for compensation ($100 per day limitation, including travel time) and travel expenses of members of the Council.
Section 871, Pub. L. 89–10, title VI, §601, formerly §601(a), as added Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1204; renumbered §601 and amended Pub. L. 90–247, title I, §§151(4), 152(b)(2), title III, §301(c)(1), Jan. 2, 1968, 81 Stat. 800, 803, 813, authorized grants to States for education of handicapped children.
Section 872, Pub. L. 89–10, title VI, §602, formerly §601(b), as added Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1204; renumbered §602 and amended Pub. L. 90–247, title I, §§151(4), 152(b)(3), title III, §301(c)(2), Jan. 2, 1968, 81 Stat. 800, 803, 813, authorized appropriations of $50,000,000; $150,000,000; $162,500,000; and $200,000,000 for fiscal years ending June 30, 1967, 1968, 1969, 1970, respectively.
Section 873, Pub. L. 89–10, title VI, §603, as added Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1205; amended Pub. L. 90–247, title I, §§152(b)(3), 153 Jan. 2, 1968, 81 Stat. 803, 804, related to allotment of appropriated funds: additional appropriation for outlying areas, payments to Secretaries of Interior and Defense, allotment among States; determination of population figures by Commissioner; reallotment.
Section 874, Pub. L. 89–10, title VI, §604, as added Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1205; amended Pub. L. 90–247, title I, §151(4), Jan. 2, 1968, 81 Stat. 800, related to submission of State plans to Commissioner and requirements of such plans.
Section 875, Pub. L. 89–10, title VI, §605, as added Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1207, provided for payments.
Section 876, Pub. L. 89–10, title VI, §606, as added Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1207; amended Pub. L. 90–247, title I, §151(4), Jan. 2, 1968, 81 Stat. 800, related to administration of State plans.
Section 877, Pub. L. 89–10, title VI, §607, as added Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1207, provided for judicial review: jurisdiction, record; findings, substantial evidence, remand; review by United States Supreme Court.
Section 877a, Pub. L. 89–10, title VI, §608, as added Pub. L. 90–247, title I, §151(5), Jan. 2, 1968, 81 Stat. 801, related to regional resource centers: authorization of appropriations of $7,500,000; $7,750,000; and $10,000,000 for fiscal years ending June 30, 1968, 1969, and 1970, respectively; availability of appropriations for grants and contracts, functions of centers; considerations governing approval, of application; and manner of payment, adjustment of overpayments and underpayments.
Section 877b, Pub. L. 89–10, title VI, §609, as added Pub. L. 90–247, title I, §151(5), Jan. 2, 1968, 81 Stat. 801, related to model centers for deaf-blind children: Congressional declaration of purpose; authorization of Secretary to make grants and contracts; considerations governing making of grants or contracts; necessary services to be provided by centers; payment of costs of research, development, training and dissemination; definition of “construction”; recovery of payments; determination of children who are both deaf and blind; manner of payment, adjustment of overpayments and underpayments; and authorization of appropriations of $1,000,000; $3,000,000; and $7,000,000 for fiscal years ending June 30, 1968, 1969, and 1970, respectively.
Section 877c, Pub. L. 89–10, title VI, §610, as added Pub. L. 90–247, title I, §151(5), Jan. 2, 1968, 81 Stat. 803, authorized grants or contracts to improve recruitment of educational personnel and dissemination of information concerning educational opportunities for handicapped.
Section 878, Pub. L. 89–10, title VI, §611, formerly §608, as added Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1207; renumbered §611, Pub. L. 90–247, title I, §151(3), Jan. 2, 1968, 81 Stat. 800, provided for National Advisory Committee on Handicapped Children: membership; functions, annual report, recommendations; compensation, travel and per diem expenses; advisory professional and technical personnel.
Section 879, Pub. L. 89–10, title VI, §612, formerly §609, as added Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1208; renumbered §612, Pub. L. 90–247, title I, §151(3), Jan. 2, 1968, 81 Stat. 800, provided for a bureau for education and training of the handicapped.
Section 880, Pub. L. 89–10, title VI, §613, formerly §610, as added Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1208; renumbered §613, Pub. L. 90–247, title I, §151(3), Jan. 2, 1968, 81 Stat. 800, provided for labor standards requirement (prevailing wage rates).
Section 880a, Pub. L. 89–10, title VI, §614, formerly §602, as added Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1204; renumbered §614, Pub. L. 90–247, title I, §152(a), Jan. 2, 1968, 81 Stat. 803, defined “handicapped children”.
Such sections 871 to 877 comprised Part A—Assistance to States for education of handicapped children.
Section 877a comprised Part B—Regional resource centers for improvement of education of handicapped children.
Section 877b comprised Part C—Centers and services for deaf-blind children.
Section 877c comprised Part D—Recruitment of personnel and information on education of handicapped.
Sections 878 to 880a comprised Part E—General provisions.
Repeal effective July 1, 1971, see section 662 of Pub. L. 91–230.
Section 615 of Pub. L. 89–10, as added by Pub. L. 90–247, title I, §154, Jan. 2, 1968, 81 Stat. 804, which provided that title VI of Pub. L. 89–10 [enacting this subchapter] was to be cited as the “Education of the Handicapped Act”, was repealed by Pub. L. 91–230, title VI, §662(3), Apr. 13, 1970, 84 Stat. 188.
Section 880b, Pub. L. 89–10, title VII, §702, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 503, which set out the Congressional declaration of policy with regard to bilingual education and authorized appropriations for fiscal years through the 1978 fiscal year, was omitted in the general revision of title VII of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title VII, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 511, by Pub. L. 95–561, title VII, §701, Nov. 1, 1978, 92 Stat. 2268.
A prior section 880b, Pub. L. 89–10, title VII, §702, as added Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 816, provided for Congressional declaration of policy and defined “children of limited English-speaking ability”. Such provision remaining in effect through June 30, 1975, to the extent not inconsistent with the amendment made by section 105 of Pub. L. 93–380, see section 105(a)(2)(A) of Pub. L. 93–380, title I, Aug. 21, 1974, 88 Stat. 503.
Pub. L. 89–10, title VII, §701, as added by Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 816, and reenacted by Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 503, which provided that this subchapter be cited as the “Bilingual Education Act”, was omitted in the general revision of this subchapter, title VII of the Elementary and Secondary Education Act of 1965, as added by Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 511, by Pub. L. 95–561, title VII, §701, Nov. 1, 1978, 92 Stat. 2268. See Codification note above.
Section 880b–1, Pub. L. 89–10, title VII, §703, as added and amended Pub. L. 93–380, title I, §105(a)(1), (b), Aug. 21, 1974, 88 Stat. 504, 512, which made general provisions for the bilingual education program, was omitted in the general revision of title VII of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title VII, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 511, by Pub. L. 95–561, title VII, §701, Nov. 1, 1978, 92 Stat. 2268.
A prior section 880b–1, Pub. L. 89–10, title VII, §703, as added Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 816; amended Pub. L. 91–230, title I, §151, Apr. 13, 1970, 84 Stat. 151, authorized appropriation of 15, 30, 40, 80, 100, and 135 million dollars for fiscal years ending June 30, 1968 through 1973, respectively, and for distribution of funds.
Sections 880b–2 to 880b–5, were to remain in effect through June 30, 1975. See section 105(a)(2)(A) of Pub. L. 93–380, Aug. 21, 1974, 88 Stat. 512.
Section 880b–2, Pub. L. 89–10, title VII, §704, as added Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 817, related to uses for Federal funds.
Section 880b–3, Pub. L. 89–10, title VII, §705, as added Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 817 related to applications for grants, providing in subsec.: (a) for time of and contents of applications; (b) conditions for approval; and (c) amendments.
Section 880b–3a, Pub. L. 89–10, title VII, §706, as added Pub. L. 91–230, title I, §152(a), Apr. 13, 1970, 84 Stat. 151; amended Pub. L. 92–318, title IV, §452, June 23, 1972, 86 Stat. 345, provided for children in schools on or near reservations, subsec. (a) relating to local educational agency status of Indian institution or organization and subsec. (b) to payments to Secretary of Interior and criteria for such payments.
Section 880b–4, Pub. L. 89–10, title VII, §707, formerly §706, as added Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 819; renumbered §707 and amended Pub. L. 91–230, title I, §152(a), (b), Apr. 13, 1970, 84 Stat. 151, 152, related to payments to applicants.
Section 880b–5, Pub. L. 89–10, title VII, §708, formerly §707, as added Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 819; renumbered §708 and amended Pub. L. 91–230, title I, §§152(a), 153, title IV, §401(h)(3), Apr. 13, 1970, 84 Stat. 151, 152, 174; Pub. L. 93–380, title VIII, §845(c), Aug. 21, 1974, 88 Stat. 612; Pub. L. 94–482, title V, §501(a)(21), Oct. 12, 1976, 90 Stat. 2236, related to establishment of an Advisory Committee on Education of Bilingual Children.
Section, Pub. L. 89–10, title VII, §709, formerly §708, as added Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 819; renumbered §709 Pub. L. 91–230, title I, §152(a), Apr. 13, 1970, 84 Stat. 151, related to labor standards requirement (prevailing wage rates).
Sections were omitted in the general revision of title VII of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title VII, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 511, by Pub. L. 95–561, title VII, §701, Nov. 1, 1978, 92 Stat. 2268.
Section 880b–7, Pub. L. 89–10, title VII, §721, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 506, provided for bilingual education programs.
Section 880b–8, Pub. L. 89–10, title VII, §722, as added Pub. L. 93–380, Title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 507, related to Indian children in schools.
Section 880b–9, Pub. L. 89–10, title VII, §723, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 508; amended Pub. L. 94–273, §3(7), Apr. 21, 1976, 90 Stat. 376; S. Res. 4, Feb. 4, 1977, related to grants and contract for training.
Sections were omitted in the general revision of title VII of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title VII, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 511, by Pub. L. 95–561, title VII, §701, Nov. 1, 1978, 92 Stat. 2268.
Section 880b–10, Pub. L. 89–10, title VII, §731, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 509; amended Pub. L. 94–273, §3(7), Apr. 21, 1976, 90 Stat. 376; Pub. L. 94–482, title V, §501(d)(1), Oct. 12, 1976, 90 Stat. 2237, established the Office of Bilingual Education.
Section 880b–11, Pub. L. 89–10, title VII, §732, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 510; amended Pub. L. 94–482, title V, §501(a)(21), (d)(2), Oct. 12, 1976, 90 Stat. 2236, 2237, provided for the establishment of the National Advisory Council on Bilingual Education.
Pub. L. 93–380, title I, §105(a)(2)(B), Aug. 21, 1974, 88 Stat. 512, provided for the appointment of the National Advisory Council on Bilingual Education, which Council was provided for by section 880b–11, within 90 days after Aug. 21, 1974. See Codification note above.
Sections were omitted in the general revision of title VII of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title VII, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 511, by Pub. L. 95–561, title VII, §701, Nov. 1, 1978, 92 Stat. 2268.
Section 880b–12, Pub. L. 89–10, title VII, §741, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 511, provided for the administration of the research and demonstration projects program.
Section 880b–13, Pub. L. 89–10, title VII, §742, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 511; amended Pub. L. 94–482, title V, §501(d)(3), Oct. 12, 1976, 90 Stat. 2237, related to research and demonstration projects.
Section, Pub. L. 89–10, title VIII, §801, formerly title VI, §601, Apr. 11, 1965, 79 Stat. 55, renumbered title VII, §701, Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1204, renumbered title VIII, §801, and amended Pub. L. 90–247, title I, §§142(b), 152(c), title VII, §§702, 703, Jan. 2, 1968, 81 Stat. 799, 803, 816, 819; Pub. L. 91–230, title I, §162, Apr. 13, 1970, 84 Stat. 152; Pub. L. 94–193, §1(c), Dec. 31, 1975, 89 Stat. 1102; Pub. L. 94–482, title V, §501(l), Oct. 12, 1976, 90 Stat. 2237, which related to definitions, was renumbered Pub. L. 89–10, title X, §1001 by Pub. L. 95–561, title VIII, §801(1), (2), Nov. 1, 1978, 92 Stat. 2284, and transferred to section 3381 of this title, and was subsequently omitted in the general amendment of Pub. L. 89–10 by Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3519.
Section, Pub. L. 89–10, title VIII, §802, formerly title VI, §602, Apr. 11, 1965, 79 Stat. 57, renumbered title VII, §702, Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1204, renumbered title VIII, §802, Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 816, provided for appointment of advisory council and for compensation ($100 per day limitation, including travel time) and travel expenses of the members.
Section 883, Pub. L. 89–10, title VIII, §803, formerly title VI, §603, Apr. 11, 1965, 79 Stat. 57; renumbered title VII, §703, and amended Pub. L. 89–750, title I, §§111(f), 161, Nov. 3, 1966, 80 Stat. 1196, 1204; renumbered title VIII, §803, Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 816; amended Pub. L. 91–230, title I, §163, title IV, §401(c)(2), Apr. 13, 1970, 84 Stat. 152, 173, was comprised of subsecs. (a) to (c). Subsecs. (a) and (b) were repealed by Pub. L. 91–230, title IV, §401(c)(2), Apr. 13, 1970, 84 Stat. 173. Subsec. (c), which related to federal administration, was renumbered Pub. L. 89–10, title X, §1002 by Pub. L. 95–561, title VIII, §801(1), (2), Nov. 1, 1978, 92 Stat. 2284, and transferred to section 3382 of this title, and was subsequently omitted in the general amendment of Pub. L. 89–10 by Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3519.
Section 884, Pub. L. 89–10, title VIII, §804, as added Pub. L. 93–380, title I, §106, Aug. 21, 1974, 88 Stat. 512, which related to limitations on refund of payments, was renumbered Pub. L. 89–10, title X, §1003 by Pub. L. 95–561, title VIII, §801(1), (2), Nov. 1, 1978, 92 Stat. 2284, and transferred to section 3383 of this title, and was subsequently omitted in the general amendment of Pub. L. 89–10 by Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3519.
A prior section 884, Pub. L. 89–10, title VIII, §804, formerly title VI, §604, Apr. 11, 1965, 79 Stat. 57; renumbered title VII, §704, and amended Pub. L. 89–750, title I, §§161, 181, Nov. 3, 1966, 80 Stat. 1204, 1209; renumbered title VIII, §804, Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 816, prohibited Federal control of education (curriculum, program of instruction, administration, personnel of any educational institution or system, selection of library resources, textbooks, or other printed or published instructional material, and assignment or transportation of students or teachers in order to overcome racial imbalance), was repealed by Pub. L. 91–230, title IV, §401(f)(5), Apr. 13, 1970, 84 Stat. 173.
Section 885, Pub. L. 89–10, title VIII, §805, formerly title VI, §605, Apr. 11, 1965, 79 Stat. 58; renumbered title VII, §705, Pub. L. 89–750, title I, §161, Nov. 3, 1966, 80 Stat. 1204; renumbered title VIII, §805, Pub. L. 90–247, title VII, §702, Jan. 2, 1968, 81 Stat. 816, which prohibited the use of funds for religious worship or instruction, was renumbered Pub. L. 89–10, title X, §1004 by Pub. L. 95–561, title VIII, §801(1), (2), Nov. 1, 1978, 92 Stat. 2284 and transferred to section 3384 of this title. Section 1004 of Pub. L. 89–10, as so renumbered, was amended by Pub. L. 95–561, title IX, §901(b), Nov. 1, 1978, 92 Stat. 2305, by substituting provisions waiving requirements for certain jurisdictions for those prohibiting use of funds for religious worship or instruction.
Section, Pub. L. 89–10, title VIII, §806, formerly title VII, §706, as added Pub. L. 89–750, title I, §171, Nov. 3, 1966, 80 Stat. 1209; renumbered §806 and amended Pub. L. 90–247, title I, §171, title VII, §702, Jan. 2, 1968, 81 Stat. 805, 816, provided for dissemination of information and authorization of appropriations of $1,500,000; $3,500,000; $3,700,000; and $4,000,000 for fiscal years ending June 30, 1967, 1968, 1969, and 1970.
Pub. L. 90–576, title III, §303(e), Oct. 16, 1968, 82 Stat. 1096, which provided that this section shall become ineffective the first fiscal year for which funds are appropriated to carry out the provisions of section 6 of this title, was repealed by section 401(d)(3) of Pub. L. 91–230.
Section 887, Pub. L. 89–10, title VIII, §807, formerly title VII, §707, as added and renumbered Pub. L. 90–247, title I, §172, title VII, §702, Jan. 2, 1968, 81 Stat. 806, 816; amended Pub. L. 91–230, title I, §161, Apr. 13, 1970, 84 Stat. 152; Pub. L. 93–380, title I, §107(a), Aug. 21, 1974, 88 Stat. 512; Pub. L. 95–112, §2(f)(1), Sept. 24, 1977, 91 Stat. 912, which related to dropout prevention projects, was omitted in the general revision of title VII of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title VII, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 511, by Pub. L. 95–561, title VII, §701, Nov. 1, 1978, 92 Stat. 2268.
Section 887a, Pub. L. 89–10, title VIII, §808, as added Pub. L. 91–230, title I, §164, Apr. 13, 1970, 84 Stat. 153; amended Pub. L. 93–380, title I, §108(a), Aug. 21, 1974, 88 Stat. 513; Pub. L. 95–112, §2(f)(2), Sept. 24, 1977, 91 Stat. 912, which related to school nutrition and health services for children from low-income families, was omitted in the general revision of title VII of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title VII, as added Pub. L. 93–380, title I, §105(a)(1), Aug. 21, 1974, 88 Stat. 511, by Pub. L. 95–561, title VII, §701, Nov. 1, 1978, 92 Stat. 2268.
Section, Pub. L. 89–10, title VIII, §809, as added Pub. L. 91–230, title I, §164, Apr. 13, 1970, 84 Stat. 154; amended Pub. L. 93–380, title I, §109(a), Aug. 21, 1974, 88 Stat. 513, related to correction education services, providing in subsecs. (a) for grants for research and demonstration projects; (b) for appointment and functions of advisory committees and furnishing of advice and recommendations of Federal officials and other persons and organizations to the Commissioner; and (c) for authorization of $500,000 for fiscal years ending June 30, 1974, and 1975.
Section 109(b) of Pub. L. 93–380 made such authorizations effective on and after July 1, 1974.
Repeal effective July 1, 1975, see section 402(c)(3) of Pub. L. 93–380.
Section 887c, Pub. L. 89–10, title VIII, §810, as added Pub. L. 92–318, title IV, §421(a), June 23, 1972, 86 Stat. 339; amended Pub. L. 93–380, title VI, §§631(a), 632(a), Aug. 21, 1974, 88 Stat. 585, 586, which related to improvement of educational opportunities for Indian children, was renumbered Pub. L. 89–10, title X, §1005, by Pub. L. 95–561, title VIII, §801(1), (2), Nov. 1, 1978, 92 Stat. 2284, and transferred to section 3385 of this title, and was subsequently repealed by Pub. L. 100–297, title V, §5352(2), Apr. 28, 1988, 102 Stat. 414.
Section 887c–1, Pub. L. 92–318, title IV, §422, as added Pub. L. 93–380, title VI, §632(c), Aug. 21, 1974, 88 Stat. 586; amended Pub. L. 95–561, title XI, §§1141(c)(1), 1152(a), Nov. 1, 1978, 92 Stat. 2329, 2333, which related to special educational training programs for teachers of Indian people, was transferred to section 3385a of this title, and was subsequently repealed by Pub. L. 100–297, title V, §5352(4), Apr. 28, 1988, 102 Stat. 414.
Section 887c–2, Pub. L. 92–318, title IV, §423, as added Pub. L. 93–380, title VI, §632(c), Aug. 21, 1974, 88 Stat. 586; amended Pub. L. 95–561, title XI, §§1141(c)(2), 1152(b), Nov. 1, 1978, 92 Stat. 2329, 2333, which related fellowships for Indian students, was transferred to section 3385b of this title, and was subsequently repealed by Pub. L. 100–297, title V, §5352(4), Apr. 28, 1988, 102 Stat. 414.
Section, Pub. L. 89–10, title VIII, §811, as added Pub. L. 92–318, title V, §505(a)(3), June 23, 1972, 86 Stat. 348; amended Pub. L. 93–380, title IV, §407(a), Aug. 21, 1974, 88 Stat. 553, related to consumers’ education programs.
Repeal effective Sept. 30, 1979, see section 301(b)(1) of Pub. L. 95–561.
Pub. L. 92–318, §505(a)(1), (2), June 23, 1972, 86 Stat. 348, provided the findings and purpose of Congress for this section.
Section, Pub. L. 89–10, title VIII, §812, as added Pub. L. 93–380, title I, §110, Aug. 21, 1974, 88 Stat. 513, which provided for open meetings of educational agencies, was renumbered Pub. L. 89–10, title X, §1006, by Pub. L. 95–561, title VIII, §801(1), (2), Nov. 1, 1978, 92 Stat. 2284, and transferred to section 3386 of this title, and was subsequently omitted in the general amendment of Pub. L. 89–10 by Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3519.
Section, Pub. L. 90–247, §2, Jan. 2, 1968, 81 Stat. 783, which was not enacted as part of Pub. L. 89–10 which comprised this subchapter, provided for citation of authority and uniform application of rules and regulations.
Sections were omitted in the general revision of title IX of the Elementary and Secondary Education Act of 1965, Pub. L. 89–10, title IX, as added Pub. L. 92–318, title V, §504(a), June 23, 1972, 86 Stat. 347, by Pub. L. 95–561, title VIII, §802, Nov. 1, 1978, 92 Stat. 2292.
Section 900, Pub. L. 89–10, title IX, §901, as added Pub. L. 92–318, title V, §504(a), June 23, 1972, 86 Stat. 346, contained the Congressional statement of policy with regard to the ethnic heritage program.
Section 900a, Pub. L. 89–10, title IX, §902, as added Pub. L. 92–318, title V, §504(a), June 23, 1972, 86 Stat. 347, authorized grants for the ethnic heritage studies program.
Section 900a–1, Pub. L. 89–10, title IX, §903, as added Pub. L. 92–318, title V, §504(a), June 23, 1972, 86 Stat. 347; amended Pub. L. 93–380, title I, §111(b), Aug. 21, 1974, 88 Stat. 513, described the authorized activities for the ethnic heritage program.
Section 900a–2, Pub. L. 89–10, title IX, §904, as added Pub. L. 92–318, title V, §504(a), June 23, 1972, 86 Stat. 347, related to the form and content of applications for assistance.
Section 900a–3, Pub. L. 89–10, title IX, §905, as added Pub. L. 92–318, title V, §504(a), June 23, 1972, 86 Stat. 347, related to the administration of the program.
Section 900a–4, Pub. L. 89–10, title IX, §906, as added Pub. L. 92–318, title V, §504(a), June 23, 1972, 86 Stat. 348, established the National Advisory Council on Ethnic Heritage Studies.
Section 900a–5, Pub. L. 89–10, title IX, §907, as added Pub. L. 92–318, title V, §504(a), June 23, 1972, 86 Stat. 348; amended Pub. L. 93–380, title I, §111(a)(1), Aug. 21, 1974, 88 Stat. 513, authorized appropriations for fiscal years through fiscal year 1978.
For the purposes of this chapter, the term—
(1) “teaching position” means those duties and responsibilities which—
(A) are performed on a school-year basis principally in a school operated by the Department of Defense in an overseas area for dependents of members of the Armed Forces and dependents of civilian employees of the Department of Defense, or are performed by an individual who carried out certain teaching activities identified in regulations prescribed by the Secretary of Defense; and
(B) involve—
(i) classroom or other instruction or the supervision or direction of classroom or other instruction; or
(ii) any activity (other than teaching) which requires academic credits in educational theory and practice equal to the academic credits in educational theory and practice required for a bachelor's degree in education from an accredited institution of higher education; or
(iii) any activity in or related to the field of education notwithstanding that academic credits in educational theory and practice are not a formal requirement for the conduct of such activity.
(2) “teacher” means an individual—
(A) who is a citizen of the United States,
(B) who is a civilian, and
(C) who is employed in a teaching position described in paragraph (1).
(3) “overseas area” means any area situated outside the United States.
(4) “United States”, when used in a geographical sense, means the several States of the United States of America, the District of Columbia, Hawaii, the Commonwealth of Puerto Rico, the Canal Zone, and the possessions of the United States (excluding the Trust Territory of the Pacific Islands and Midway Islands).
(Pub. L. 86–91, §2, July 17, 1959, 73 Stat. 213; Pub. L. 104–201, div. A, title XVI, §1606(a), Sept. 23, 1996, 110 Stat. 2736; Pub. L. 105–85, div. A, title X, §1073(c)(9)(A), Nov. 18, 1997, 111 Stat. 1904.)
For definition of Canal Zone, referred to in par. (4), see section 3602(b) of Title 22, Foreign Relations and Intercourse.
Section was formerly classified to section 2351 of Title 5 prior to the general revision and enactment of Title 5, Government Organization and Employees, by Pub. L. 89–554, §1, Sept. 6, 1966, 80 Stat. 378.
1997—Par. (1)(A). Pub. L. 105–85 made technical corrections to Pub. L. 104–201, §1606(a)(1). See 1996 Amendment note below.
1996—Par. (1)(A). Pub. L. 104–201, §1606(a)(1), as amended by Pub. L. 105–85, inserted “or are performed by an individual who carried out certain teaching activities identified in regulations prescribed by the Secretary of Defense;” after “Defense,”.
Par. (2)(C). Pub. L. 104–201, §1606(a)(2), added subpar. (C) and struck out former subpar. (C) which read as follows: “whose services are required on a school-year basis in a teaching position.”
Section 1073(c) of Pub. L. 105–85 provided that the amendment made by that section is effective as of Sept. 23, 1996, and as if included in the National Defense Authorization Act for Fiscal Year 1997, Pub. L. 104–201, as enacted.
Section 1 of Pub. L. 86–91 provided that: “This Act [enacting this chapter and provisions now contained in section 5102(c)(22) of Title 5, Government Organization and Employees] may be cited as the ‘Defense Department Overseas Teachers Pay and Personnel Practices Act’.”
For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.
Not later than the ninetieth day following July 17, 1959, the Secretary of Defense shall prescribe and issue regulations to carry out the purposes of this chapter. Such regulations shall govern—
(1) the establishment of teaching positions;
(2) the fixing of basic compensation for teachers and teaching positions at rates equal to the average of the range of rates of basic compensation for similar positions of a comparable level of duties and responsibilities in urban school jurisdictions in the United States of 100,000 or more population;
(3) the entitlement of teachers to compensation;
(4) the payment of compensation to teachers;
(5) the appointment of teachers;
(6) the conditions of employment of teachers;
(7) the length of the school year or school years applicable to teaching positions;
(8) the leave system for teachers;
(9) quarters, allowances, and additional compensation for teachers; and
(10) such other matters as may be relevant and appropriate to the purposes of this chapter.
The regulations prescribed and issued by the Secretary of Defense under subsection (a) of this section shall become effective on such date as the Secretary of Defense shall prescribe but not later than the ninetieth day following the date of issuance of such regulations.
(Pub. L. 86–91, §4, July 17, 1959, 73 Stat. 214; Pub. L. 89–391, §1(a), Apr. 14, 1966, 80 Stat. 117.)
Section was formerly classified to section 2352 of Title 5 prior to the general revision and enactment of Title 5, Government Organization and Employees, by Pub. L. 89–554, §1, Sept. 6, 1966, 80 Stat. 378.
1966—Subsec. (a)(2). Pub. L. 89–391 substituted provisions for issuance of regulations to fix basic compensation for teachers and teaching positions at rates equal to the average of the range of rates of basic compensation for similar positions of a comparable level of duties and responsibilities in urban school jurisdictions in the United States of 100,000 or more population for former provisions fixing basic compensation for teaching positions in relation to rates of basic compensation for similar positions in the United States.
Section 2 of Pub. L. 89–391 provided that: “The amendments made by the first section of this Act [amending this section and section 903 of this title] shall become effective on the first day of the first pay period which begins after the date of enactment of this Act [Apr. 14, 1966].”
The Secretary of Defense shall conduct the employment and salary practices applicable to teachers and teaching positions in the Department of Defense in accordance with this chapter, other applicable law, and the regulations prescribed and issued by the Secretary of Defense under section 902 of this title.
Subject to section 5103 of title 5, the Secretary of Defense—
(1) shall determine the applicability of paragraph (22) of section 5102(c) of title 5 to positions and individuals in the Department of Defense; and
(2) shall establish the appropriate annual salary rate in accordance with this chapter for each such position and individual to which such paragraph (22) is determined to be applicable.
The Secretary of Defense shall fix the basic compensation for teachers and teaching positions in the Department of Defense at rates equal to the average of the range of rates of basic compensation for similar positions of a comparable level of duties and responsibilities in urban school jurisdictions in the United States of 100,000 or more population.
The Secretary of Defense may prescribe and issue such regulations as he deems appropriate to carry out his functions under this chapter.
(Pub. L. 86–91, §5, July 17, 1959, 73 Stat. 214; Pub. L. 86–370, §6(b), Sept. 23, 1959, 73 Stat. 652; Pub. L. 89–391, §1(b), (c), Apr. 14, 1966, 80 Stat. 117; Pub. L. 96–470, title I, §104(b), Oct. 19, 1980, 94 Stat. 2238; Pub. L. 104–201, div. A, title XVI, §1606(b), Sept. 23, 1996, 110 Stat. 2737; Pub. L. 105–85, div. A, title X, §1073(c)(9)(B), (C), Nov. 18, 1997, 111 Stat. 1904.)
In subsec. (b), “section 5103 of title 5” and “paragraph (22) of section 5102(c) of title 5” substituted for “section 202 of the Classification Act of 1949” and “paragraph (33) of section 202 of such Act, added by section 3 of this Act” respectively, on authority of Pub. L. 89–554, §7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.
Provisions of section 1(b) and (c) of Pub. L. 89–391 for amendment of subsec. (c) of this section and addition of other provisions as another subsec. (c), have been executed in the Code as an amendment of subsec. (c) of this section and addition of subsec. (e) of this section, respectively.
Section was formerly classified to section 2353 of Title 5 prior to the general revision and enactment of Title 5, Government Organization and Employees, by Pub. L. 89–554, §1, Sept. 6, 1966, 80 Stat. 378.
1997—Subsec. (a). Pub. L. 105–85, §1073(c)(9)(B), made technical correction to Pub. L. 104–201, §1606(b)(1)(A). See 1996 Amendment note below.
Subsec. (b)(1). Pub. L. 105–85, §1073(c)(9)(C), made technical correction to Pub. L. 104–201, §1606(b)(2)(B). See 1996 Amendment note below.
1996—Subsec. (a). Pub. L. 104–201, §1606(b)(1)(B), substituted “the Department of Defense” for “his military department”.
Pub. L. 104–201, §1606(b)(1)(A), as amended by Pub. L. 105–85, §1073(c)(9)(B), substituted “Secretary of Defense shall” for “secretary of each military department in the Department of Defense shall”.
Subsec. (b). Pub. L. 104–201, §1606(b)(2)(A), substituted “Secretary of Defense—” for “secretary of each military department—” in introductory provisions.
Subsec. (b)(1). Pub. L. 104–201, §1606(b)(2)(B), as amended by Pub. L. 105–85, §1073(c)(9)(C), substituted “the Department of Defense;” for “his military department,”.
Subsec. (c). Pub. L. 104–201, §1606(b)(3), substituted “Secretary of Defense” for “Secretary of each military department” and “the Department of Defense” for “his military department”.
Subsec. (d). Pub. L. 104–201, §1606(b)(4), substituted “Secretary of Defense” for “Secretary of each military department”.
1980—Subsec. (e). Pub. L. 96–470 struck out subsec. (e) which required the Secretary of Defense, on or before the 15th day of January in each calendar year beginning after Apr. 14, 1966, to report to the respective Committees on Post Office and Civil Service of the Senate and House of Representatives information on teachers separated from teaching positions subsequent to the close of the immediately preceding full school year and the number of new teachers appointed to teaching positions at the beginning of the school year current at time of the report, including the number of such new teachers obtained through voluntary reciprocal interchange agreements with school jurisdictions in the United States.
1966—Subsec. (c). Pub. L. 89–391, §1(b), substituted provisions for fixing the basic compensation for teachers and teaching positions at rates equal to the average of the range of rates of basic compensation for similar positions of a comparable level of duties and responsibilities in urban school jurisdictions in the United States of 100,000 or more population for former provisions fixing such rates in relation to the rates of basic compensation for similar positions in the United States but not exceeding the highest rate of basic compensation for similar positions of a comparable level of duties and responsibilities under the municipal government of the District of Columbia.
Subsec. (e). Pub. L. 89–391, §1(c), inserted provisions designated as subsec. (c) to section 5 of Pub. L. 86–91, but codified as subsec. (e) of this section.
1959—Subsec. (b). Pub. L. 86–370 substituted “(33)” for “(32)” in two places.
Section 1073(c) of Pub. L. 105–85 provided that the amendment made by that section is effective as of Sept. 23, 1996, and as if included in the National Defense Authorization Act for Fiscal Year 1997, Pub. L. 104–201, as enacted.
Amendments of this section by Pub. L. 89–391 effective on first day of first pay period beginning after Apr. 14, 1966, see section 2 of Pub. L. 89–391, set out as a note under section 902 of this title.
Amendment by Pub. L. 86–370 effective on first day of first pay period which begins after Sept. 23, 1959, see section 7(b) of Pub. L. 86–370, set out as a note under section 3 of Title 35, Patents.
Subsec. (c) of this section not to apply with respect to any teacher who was employed by the Canal Zone Government school system on September 30, 1979, and who was transferred from such position to a teaching position which is under the Department of Defense Overseas Dependent School System and the permanent duty station of which is in the Republic of Panama, until the rates of basic compensation established under subsec. (c) of this section equal or exceed the rates of basic compensation then in effect for teachers who were so transferred, see section 3671(c)(1) of Title 22, Foreign Relations and Intercourse.
Subject to the regulations prescribed and issued by the Secretary of Defense under section 902 of this title, each teacher (other than an individual employed as a substitute teacher) shall be entitled to cumulative leave, with pay, which shall accrue at the rate of one day for each calendar month, or part thereof, of a school year, except that if the school year includes more than eight months, any such teacher who shall have served for the entire school year shall be entitled to ten (or, if such teacher is employed in a supervisory position or higher, not less than ten and not more than thirteen) days of cumulative leave with pay.
Saturdays, Sundays, regularly scheduled holidays, and other administratively authorized nonwork days shall not be considered to be days of leave for the purposes of subsection (a) of this section.
Subject to the regulations prescribed and issued by the Secretary of Defense, leave earned by any teacher under subsection (a) of this section may be used by such teacher—
(1) for maternity purposes,
(2) in the event of the illness of such teacher,
(3) in the event of illness, contagious disease, or death in the immediate family of such teacher, and
(4) in the event of any personal emergency.
If appropriate advance notice is given of the intended absence of a teacher, not to exceed three days of such leave may be granted for any purpose in each school year to such teacher.
Any individual—
(1) who is holding a position which is determined to be a teaching position, or
(2) who is an employee of the Federal Government or the municipal government of the District of Columbia who is transferred, promoted, or reappointed, without break in service, from a position under a different leave system to a teaching position,
shall be credited, for the purposes of the leave system provided by this section, with the annual and sick leave to his credit immediately prior to the effective date of such determination, transfer, promotion, or reappointment. Sick leave so credited shall be included in the leave provided for in subsection (a) of this section. Annual leave so credited shall not be included in the leave provided for in such subsection but shall be used under regulations which shall be prescribed by the Secretary of Defense.
In any case in which the amount of sick leave, which is to the credit of any individual under a different leave system immediately prior to the date on which he becomes subject as a teacher to the leave system provided by this section and which is included in the leave provided for in subsection (a) of this section, is in excess of the maximum amount of accumulated leave allowable under subparagraph (2) of such subsection, such excess shall remain to the credit of such teacher until used, but the use during any leave year of an amount in excess of the aggregate amount which shall have accrued during such year shall reduce automatically the maximum allowable amount of accumulated leave at the beginning of the next leave year until such amount no longer exceeds the maximum amount allowable under subparagraph (2) of subsection (a) of this section.
Any annual leave remaining, upon his separation from the service, to the credit of an individual within the purview of this section shall be liquidated in accordance with section 5551 of title 5, except that leave earned or included under subsection (a) of this section shall not be liquidated.
In the case of any teacher who is transferred, promoted, or reappointed, without break in service, to a position under a different leave system, the annual leave, and any other leave earned or credited under this section, which is to his credit immediately prior to such transfer, promotion, or reappointment, shall be transferred to his credit in the employing agency on an adjusted basis in accordance with regulations which shall be prescribed by the Director of the Office of Personnel Management.
The Director of Dependents’ Education, in consultation with the Director of the Office of Personnel Management—
(1) shall establish for teachers a voluntary leave transfer program similar to the one under subchapter III of chapter 63 of title 5; and
(2) may establish for teachers a voluntary leave bank program similar to the one under subchapter IV of chapter 63 of title 5.
Only leave described in the last sentence of subsection (c) of this section (relating to leave that may be used by a teacher for any purpose) may be transferred under any program established under this subsection.
(Pub. L. 86–91, §6, July 17, 1959, 73 Stat. 214; 1978 Reorg. Plan No. 2, §102, eff. Jan. 1, 1979, 43 F.R. 36037, 92 Stat. 3783; Pub. L. 98–369, div. B, title II, §2204, July 18, 1984, 98 Stat. 1059; Pub. L. 103–425, §1, Oct. 31, 1994, 108 Stat. 4369.)
In subsec. (f), “section 5551 of title 5” substituted for “the Act of December 21, 1944 (5 U.S.C. 61b and the following)” on authority of Pub. L. 89–554, §7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.
Section was formerly classified to section 2354 of Title 5 prior to the general revision and enactment of Title 5 by Pub. L. 89–554, §1, Sept. 6, 1966, 80 Stat. 378.
1994—Subsec. (a). Pub. L. 103–425, §1(1), inserted “(or, if such teacher is employed in a supervisory position or higher, not less than ten and not more than thirteen)” after “ten”.
Subsec. (d). Pub. L. 103–425, §1(2), substituted “Secretary of Defense” for “Secretary of the military department concerned” in concluding provisions.
Subsec. (h). Pub. L. 103–425, §1(3), added subsec. (h).
1984—Subsec. (a). Pub. L. 98–369 struck out provisions which had directed that not more than seventy-five days of leave could be accumulated to the credit of a teacher at any one time under this subsection.
“Director of the Office of Personnel Management” substituted for “United States Civil Service Commission” in subsec. (g), pursuant to Reorg. Plan No. 2 of 1978, §102, 43 F.R. 36037, 92 Stat. 3783, set out under section 1101 of Title 5, Government Organization and Employees, which transferred functions vested by statute in Civil Service Commission to Director of Office of Personnel Management (except as otherwise specified), effective Jan. 1, 1979, as provided by section 1–102 of Ex. Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055, set out under section 1101 of Title 5.
Under regulations which shall be prescribed by or under authority of the President, each teacher (other than a teacher employed in a substitute capacity) shall be entitled, in addition to basic compensation, to quarters, quarters allowance, and storage as provided by this section.
Each teacher (other than a teacher employed in a substitute capacity) shall be entitled, for each school year for which he performs services as a teacher, to quarters or a quarters allowance equal to those authorized by section 5912 of title 5.
Each teacher (other than a teacher employed in a substitute capacity) who is performing services as a teacher at the close of a school year and agrees in writing to serve as a teacher for the next school year may be authorized, for the recess period immediately preceding such next school year—
(1) quarters or a quarters allowance equal to those authorized by section 5912 of title 5, or
(2) in lieu of such quarters or quarters allowance, storage (including packing, drayage, unpacking, and transportation to and from storage) of his household effects and personal possessions.
If a teacher does not report for service at the beginning of the next school year, he shall, except for reasons beyond his control and acceptable to the Department of Defense, be obligated to the United States in an amount equal to any quarters allowance which he may have received under subsection (c) of this section or in an amount equal to the reasonable value of any quarters or storage which he may have received under such subsection, or both, as the case may be.
Quarters, quarters allowance, and storage provided under this section shall be in lieu of any quarters, quarters allowance, and storage to which he otherwise might be entitled by reason of employment in another position during any recess period between two school years.
(1) A teacher assigned to teach at Guantanamo Bay Naval Station, Cuba, who is not accompanied at such station by any dependent shall be offered for lease any available military family housing at such station that is suitable for occupancy by the teacher and is not needed to house members of the armed forces and dependents accompanying them or other civilian personnel and any dependents accompanying them.
(2) For any period for which military family housing is leased under paragraph (1) to a teacher described in such paragraph, the teacher shall receive a quarters allowance in the amount determined under subsection (b) of this section. The teacher is entitled to such quarters allowance without regard to whether other Government furnished quarters are available for occupancy by the teacher without charge to the teacher.
(Pub. L. 86–91, §7, July 17, 1959, 73 Stat. 216; Pub. L. 87–172, §1, Aug. 30, 1961, 75 Stat. 409; Pub. L. 107–314, div. A, title III, §342, Dec. 2, 2002, 116 Stat. 2515.)
In subsecs. (b) and (c)(1), “section 5912 of title 5” substituted for “the Act of June 26, 1930 (5 U.S.C. 118a)” on authority of Pub. L. 89–554, §7(b), June 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.
Section was formerly classified to section 2355 of Title 5 prior to the general revision and enactment of Title 5 by Pub. L. 89–554, §1, Sept. 6, 1966, 80 Stat. 378.
2002—Subsec. (f). Pub. L. 107–314 added subsec. (f).
1961—Subsec. (d). Pub. L. 87–172 inserted “except for reasons beyond his control and acceptable to the Department of Defense”.
Functions vested in President by subsec. (a) of this section concerning authority to prescribe regulations relating to quarters and quarters allowances delegated to Secretary of State pursuant to Ex. Ord. No. 12228, July 24, 1980, 45 F.R. 49903, set out as a note under section 707 of Title 38, Veterans’ Benefits.
Authority of President under subsec. (a) of this section to prescribe regulations relating to storage (including packing, drayage, unpacking, and transportation to and from storage) of household effects and personal possessions delegated to Administrator of General Services, see section 1(19) of Ex. Ord. No. 11609, July 22, 1971, 36 F.R. 13747, set out as a note under section 301 of Title 3, The President.
Secretary of State empowered to prescribe regulations relating to cost-of-living allowances, see section 4(a) of Ex. Ord. No. 10903, Jan. 11, 1961, 26 F.R. 217, set out as a note under section 5921 of Title 5, Government Organization and Employees.
Under regulations which shall be prescribed by or under authority of the President, each teacher (other than a teacher employed in a substitute capacity) shall be entitled, in addition to basic compensation, to—
(1) cost-of-living allowances equal to those authorized by section 5924 of title 5, and
(2) additional compensation equal to that authorized under section 5941 of title 5.
The cost-of-living allowances and additional compensation provided under subsection (a) of this section for any teacher shall be based on the teaching position in which he rendered services on a school-year basis, except that, if such teacher is employed in another position during any recess period between two school years, such allowances and compensation for such recess period shall be based on the position in which he is employed during such recess period.
(Pub. L. 86–91, §8, July 17, 1959, 73 Stat. 216; Pub. L. 96–465, title II, §2206(d), Oct. 17, 1980, 94 Stat. 2162.)
In subsec. (a)(2), “section 5941 of title 5” substituted for “section 207 of the Independent Offices Appropriation Act, 1949 (5 U.S.C. 118h)” on authority of Pub. L. 89–554, §7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.
Section was formerly classified to section 2356 of Title 5 prior to the general revision and enactment of Title 5 by Pub. L. 89–554, §1, Sept. 6, 1966, 80 Stat. 378.
1980—Subsec. (a)(1). Pub. L. 96–465 substituted reference to section 5924 of title 5 for reference to section 1131(2) of title 22.
Amendment by Pub. L. 96–465 effective Feb. 15, 1981, except as otherwise provided, see section 2403 of Pub. L. 96–465, set out as an Effective Date note under section 3901 of Title 22, Foreign Relations and Intercourse.
Functions vested in President by subsec. (a) of this section concerning authority to prescribe regulations relating to cost of living allowances delegated to Secretary of State pursuant to Ex. Ord. No. 12228, July 24, 1980, 45 F.R. 49903, set out as a note under section 707 of Title 38, Veterans’ Benefits.
Functions of President under subsec. (a) of this section delegated to Director of Bureau of the Budget, now Director of Office of Management and Budget, see section 1(10) of Ex. Ord. No. 11230, June 28, 1965, 30 F.R. 8447, set out as a note under section 301 of Title 3, The President.
Secretary of State empowered to prescribe regulations relating to quarters and quarters allowance, see section 4(a) of Ex. Ord. No. 10903, Jan. 11, 1961, 26 F.R. 217, set out as a note under section 5921 of Title 5, Government Organization and Employees.
For provisions relating to payment of additional compensation authorized by subsec. (a)(2) of this section in accordance with the regulations contained in Ex. Ord. No. 10000, see section 1–101 of Ex. Ord. No. 12228, July 24, 1980, 45 F.R. 49903, set out as a note under section 707 of Title 38, Veterans’ Benefits.
In the case of any teacher who—
(1) is performing services as a teacher at the close of a school year,
(2) agrees in writing to serve as a teacher for the next school year, and
(3) is employed in another position in the recess period immediately preceding such next school year, or, during such recess period, receives quarters, allowances, or additional compensation referred to in sections 905 and 906 of this title, or both, as the case may be,
section 5533 of title 5 shall not apply to such teacher by reason of any such employment during a recess period or any such receipt of quarters, allowances, or additional compensation, or both, as the case may be.
(Pub. L. 86–91, §10(b), July 17, 1959, 73 Stat. 217; Pub. L. 88–448, title IV, §401(n), Aug. 19, 1964, 78 Stat. 492.)
“Section 5533 of title 5” substituted in text for “section 301 of the Dual Compensation Act” on authority of Pub. L. 89–554, §7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.
Section was formerly classified to section 2358(b) of Title 5 period to the general revision and enactment of Title 5 by Pub. L. 89–554, §1, Sept. 6, 1966, 80 Stat. 378.
1964—Subsec. (b). Pub. L. 88–448 made section 301 of the Dual Compensation Act inapplicable and struck out provisions which referred to former section 62 of title 5 and section 6 of the act of May 10, 1916.
The Secretary of Defense shall establish and operate a program (hereinafter in this chapter referred to as the “defense dependents’ education system”) to provide a free public education through secondary school for dependents in overseas areas.
(1) The Secretary shall ensure that individuals eligible to receive a free public education under subsection (a) of this section receive an education of high quality.
(2) In establishing the defense dependents’ education system under subsection (a) of this section, the Secretary shall provide programs designed to meet the special needs of—
(A) the handicapped,
(B) individuals in need of compensatory education,
(C) individuals with an interest in vocational education,
(D) gifted and talented individuals, and
(E) individuals of limited English-speaking ability.
(3) The Secretary shall provide a developmental preschool program to individuals eligible to receive a free public education under subsection (a) of this section who are of preschool age if a preschool program is not otherwise available for such individuals and if funds for such a program are available.
The Secretary of Defense shall consult with the Secretary of Education on the educational programs and practices of the defense dependents’ education system.
(1) The Secretary of Defense may provide optional summer school programs in the defense dependents’ education system.
(2) The Secretary shall provide any summer school program under this subsection on the same financial basis as programs offered during the regular school year, except that the Secretary may charge reasonable fees for all or portions of such summer school programs to the extent that the Secretary determines appropriate.
(3) The amounts received by the Secretary in payment of the fees shall be available to the Department of Defense for defraying the costs of conducting summer school programs under this subsection.
(Pub. L. 95–561, title XIV, §1402, Nov. 1, 1978, 92 Stat. 2365; Pub. L. 99–145, title XII, §1204(b)(1), Nov. 8, 1985, 99 Stat. 720; Pub. L. 102–484, div. A, title III, §382, Oct. 23, 1992, 106 Stat. 2392; Pub. L. 106–65, div. A, title III, §354(1), Oct. 5, 1999, 113 Stat. 572; Pub. L. 107–314, div. A, title III, §343, Dec. 2, 2002, 116 Stat. 2515.)
This chapter, referred to in subsec. (a), was in the original “this title”, meaning title XIV of Pub. L. 95–561, Nov. 1, 1978, 92 Stat. 2365, as amended, known as the Defense Dependents’ Education Act of 1978, which enacted this chapter, section 489 of Title 37, Pay and Allowances of the Uniformed Services, and section 1769b of Title 42, The Public Health and Welfare, amended sections 1773 and 1789 of Title 42, and enacted provisions set out as notes under this section. For complete classification of this title to the Code, see Short Title note below and Tables.
2002—Subsec. (d)(2). Pub. L. 107–314 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The Secretary shall provide in regulations for fees to be charged for the students enrolling in a summer school program under this subsection in amounts determined on the basis of family income.”
1999—Subsec. (b)(1). Pub. L. 106–65 substituted “to receive” for “to recieve”.
1992—Subsec. (d). Pub. L. 102–484 added subsec. (d).
1985—Subsec. (c). Pub. L. 99–145 added subsec. (c).
Section 1415 of title XIV of Pub. L. 95–561 provided that:
“(a)(1) Except as provided in paragraph (2) this title [see Short Title note below] shall take effect on July 1, 1979.
“(2) Section 1407(b) [enacting section 926(b) of this title] and the amendments made by section 1407(c) [enacting section 429 of Title 37, Pay and Allowances of the Uniformed Services], 1408(a) [enacting section 1769b of Title 42, The Public Health and Welfare], and 1408(b) [amending sections 1773 and 1789 of Title 42] shall take effect on October 1, 1978.
“(b) Notwithstanding subsection (a) or any other provision of this title no provision of this title shall be construed to impair or prevent the taking effect of the provision of any other Act providing for the transfer of the functions described in this title to an executive department having responsibility for education.”
Section 1401 of title XIV of Pub. L. 95–561 provided that: “This title [enacting this chapter, section 429 of Title 37, Pay and Allowances of the Uniformed Services, and section 1769b of Title 42, The Public Health and Welfare, amending sections 1773 and 1789 of Title 42, and enacting provisions set out as a note under this section] may be cited as the ‘Defense Dependents’ Education Act of 1978’.”
Pub. L. 110–181, div. B, title XXVIII, §2879, Jan. 28, 2008, 122 Stat. 564, provided that:
“(a)
“(b)
“(1) A description of each school under the control of the Secretary, including the location, year constructed, grades of attending children, maximum capacity, and current capacity of the school.
“(2) A description of the standards and processes used by the Secretary to assess the adequacy of the size of school facilities, the ability of facilities to support school programs, and the current condition of facilities.
“(3) A description of the conditions of the facility or facilities at each school, including the level of compliance with the standards described in paragraph (2), any existing or projected facility deficiencies or inadequate conditions at each facility, and whether any of the facilities listed are temporary structures.
“(4) An investment strategy planned for each school to correct deficiencies identified in paragraph (3), including a description of each project to correct such deficiencies, cost estimates, and timelines to complete each project.
“(5) A description of requirements for new schools to be constructed over the next 10 years as a result of changes to the population of military personnel.
“(c)
Pub. L. 104–106, div. A, title III, §355, Feb. 10, 1996, 110 Stat. 269, provided that:
“(a)
“(b)
“(c)
The defense dependents’ education system is operated through the field activity of the Department of Defense known as the Department of Defense Education Activity. That activity is headed by a Director, who is a civilian and is selected by the Secretary of Defense. The Director reports to an Assistant Secretary of Defense designated by the Secretary of Defense for purposes of this chapter.
Except with respect to the authority to prescribe regulations, the Secretary of Defense may carry out his functions under this chapter through the Director.
The Director shall—
(1) establish personnel policies, consistent with the Defense Department Overseas Teachers Pay and Personnel Practices Act (20 U.S.C. 901 et seq.), for employees in the defense dependents’ education system,
(2) have authority to transfer professional employees in the defense dependents’ education system from one position to another,
(3) prepare a unified budget for each fiscal year, which shall include necessary funds for construction and operation and maintenance of facilities, for the defense dependents’ education system for inclusion in the Department of Defense budget for that year,
(4) have authority to establish, in accordance with section 928 of this title, local school advisory committees,
(5) have authority to arrange for inservice and other training programs for employees in the defense dependents’ education system, and
(6) perform such other functions as may be required or delegated by the Secretary of Defense or the Assistant Secretary of Defense designated under subsection (a) of this section.
(1) The Director shall establish appropriate regional or area offices in order to provide for thorough and efficient administration of the defense dependents’ education system.
(2) Whenever the Department of Defense Education Activity is reorganized in a manner that affects the defense dependents’ education system, the Secretary of Defense shall submit a report to the Congress describing the reorganization.
(3) Subject to the approval of the Secretary of Defense, the Department of Defense Education Activity is authorized an appropriate number of civilian employees in its central office and such regional or area office as are established pursuant to paragraph (1).
(Pub. L. 95–561, title XIV, §1403, Nov. 1, 1978, 92 Stat. 2365; Pub. L. 106–65, div. A, title III, §354(2), Oct. 5, 1999, 113 Stat. 572; Pub. L. 106–398, §1 [[div. A], title X, §1087(g)(8)], Oct. 30, 2000, 114 Stat. 1654, 1654A–294.)
The Defense Department Overseas Teachers Pay and Personnel Practices Act, referred to in subsec. (c)(1), is Pub. L. 86–91, July 17, 1959, 73 Stat. 213, as amended, which is classified generally to chapter 25 (§901 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 901 of this title and Tables.
2000—Subsec. (c)(6). Pub. L. 106–398 struck out “the” before “the Assistant Secretary of Defense”.
1999—Pub. L. 106–65, §354(2)(A), amended section catchline.
Subsec. (a). Pub. L. 106–65, §354(2)(A), added subsec. (a) and struck out former subsec. (a) which read as follows:
“(1) There is established within the Department of Defense an office to be known as the Office of Dependents’ Education.
“(2) The Office of Dependents’ Education shall be headed by a Director of Dependents’ Education (hereinafter in this chapter referred to as the ‘Director’), who shall be a civilian and who shall be selected by the Secretary of Defense and shall report to the Assistant Secretary of Defense for Manpower, Reserve Affairs, and Logistics.”
Subsec. (b). Pub. L. 106–65, §354(2)(B), made technical amendment to reference in original act which appears in text as reference to this chapter.
Subsec. (c)(1). Pub. L. 106–65, §354(2)(C), inserted “(20 U.S.C. 901 et seq.)” after “Personnel Practices Act”.
Subsec. (c)(2). Pub. L. 106–65, §354(2)(D), substituted a comma for the period at end.
Subsec. (c)(6). Pub. L. 106–65, §354(2)(E), substituted “the Assistant Secretary of Defense designated under subsection (a) of this section” for “Assistant Secretary of Defense for Manpower, Reserve Affairs, and Logistics”.
Subsec. (d)(1). Pub. L. 106–65, §354(2)(F), struck out “for the Office of Dependents’ Education” after “area offices”.
Subsec. (d)(2). Pub. L. 106–65, §354(2)(G), struck out first sentence which read: “Not later than six months after November 1, 1978, the Secretary of Defense shall submit to the Congress a report (A) describing the organization of the Office of Dependents’ Education in accordance with paragraph (1), (B) describing the assignment of personnel to the central office of the Office of Dependents’ Education and to such regional or area offices as are established pursuant to paragraph (1), and (C) detailing the personnel requirements of the defense dependents’ education system.” and substituted “Whenever the Department of Defense Education Activity” for “Whenever the Office of Dependents’ Education”, “in a manner that affects the defense dependents’ education system” for “after the submission of the report required under the preceding sentence”, and “a report” for “an additional report”.
Subsec. (d)(3). Pub. L. 106–65, §354(2)(H), substituted “the Department of Defense Education Activity” for “the Office of Dependents’ Education”.
Subject to subsection (b) of this section and in accordance with regulations issued under subsection (c) of this section, the Director may authorize the enrollment in a school of the defense dependents’ education system of a child not otherwise eligible to enroll in such a school if and to the extent that there is space available for such child in the school.
(1) Except as otherwise provided under subsection (c) of this section, any child permitted to enroll in a school of the defense dependents’ education system under this section shall be required to pay tuition at a rate determined by the Secretary of Defense, which shall not be less than the rate necessary to defray the average cost of the enrollment of children in the system under this section.
(2) Amounts received under paragraph (1) shall be available to the defense dependents’ education system to assist in defraying the cost of enrollment of children in the system under this section.
(1) The Secretary of Defense may by regulation identify classes of children who shall be eligible to enroll in schools of the defense dependents’ education system under this section if and to the extent that there is space available, establish priorities among such classes, waive the tuition requirement of subsection (b)(1) of this section with respect to any such class, and issue such other regulations as may be necessary to carry out this section.
(2)(A) The Secretary shall include in the regulations prescribed under this subsection a requirement that children in the class of children described in subparagraph (B) shall be subject to the same tuition requirements, or waiver of tuition requirements, as children in the class of children described in subparagraph (C).
(B) The class of children described in this subparagraph are children of members of reserve components of the Armed Forces who—
(i) are on active duty under an order to active duty under section 12301 or 12302 of title 10;
(ii) were ordered to active duty from a location in the United States (other than in Alaska or Hawaii); and
(iii) are serving on active duty outside the United States or in Alaska or Hawaii.
(C) The class of children described in this subparagraph are children of members of reserve components of the Armed Forces who—
(i) are on active duty under an order to active duty under section 12301 or 12302 of title 10;
(ii) were ordered to active duty from a location outside the United States (or in Alaska or Hawaii); and
(iii) are serving on active duty outside the United States or in Alaska or Hawaii.
(1) The Secretary of Defense may authorize the enrollment in schools of the defense dependents’ education system of children in the following classes:
(A) Children of officers and employees of the United States (other than civilian officers and employees who are sponsors under section 932(2) of this title) stationed in overseas areas.
(B) Children of employees of contractors employed in carrying out work for the United States in overseas areas.
(C) Children of other citizens or nationals of the United States or of foreign nationals, if the Secretary determines that enrollment of such children is in the national interest.
(2) Notwithstanding subsection (c) of this section, the Secretary may not waive the tuition requirements of subsection (b)(1) of this section with respect to children referred to in paragraph (1).
(Pub. L. 95–561, title XIV, §1404, Nov. 1, 1978, 92 Stat. 2366; Pub. L. 99–145, title XII, §1205, Nov. 8, 1985, 99 Stat. 721; Pub. L. 101–189, div. A, title III, §325(b), Nov. 29, 1989, 103 Stat. 1415; Pub. L. 108–136, div. A, title V, §563, Nov. 24, 2003, 117 Stat. 1483.)
2003—Pub. L. 108–136, §563(b), substituted “Space-available enrollment of students; tuition” for “Tuition-paying students” in section catchline.
Subsec. (c). Pub. L. 108–136, §563(a), designated existing provisions as par. (1) and added par. (2).
1989—Subsec. (d)(1)(A). Pub. L. 101–189 substituted “(other than civilian officers and employees who are sponsors under section 932(2) of this title)” for “(including employees of nonappropriated fund activities of the Department of Defense)”.
1985—Subsec. (d). Pub. L. 99–145 added subsec. (d).
Section 325(c) of Pub. L. 101–189 provided that: “The amendments made by this section [amending this section and section 932 of this title] shall apply with respect to periods of enrollment in schools of the defense dependents’ education system beginning after September 30, 1989.”
Under regulations to be prescribed by the Secretary of Defense, the Secretary may authorize the enrollment in schools of the defense dependents’ education system on a tuition-free basis of—
(1) the children of full-time, locally-hired employees of the Department of Defense in an overseas area if such employees are citizens or nationals of the United States; and
(2) the children of a foreign military member assigned to the Supreme Headquarters Allied Powers, Europe, but only in a school of the defense dependents’ education system in Mons, Belgium.
The Secretary may use funds available for the defense dependents’ education system to provide for the education of children enrolled in the defense dependents’ education system under subsection (a).
(1) In the regulations required by subsection (a), the Secretary shall prescribe a methodology based on the estimated total number of dependents of sponsors under section 932(2) of this title enrolled in schools of the defense dependents’ education system in Mons, Belgium, to determine the number of children described in paragraph (2) of subsection (a) who will be authorized to enroll under such subsection. The Secretary shall prescribe such methodology with the advice and assistance of the commander of the geographic combatant command with jurisdiction over Mons, Belgium.
(2) If the number of children described in paragraph (2) of subsection (a) who seek enrollment in schools of the defense dependents’ education system in Mons, Belgium, exceeds the number authorized by the Secretary under paragraph (1), the Secretary may enroll the additional children on a space-available, tuition-free basis notwithstanding section 923(d)(2) of this title.
(Pub. L. 95–561, title XIV, §1404A, as added Pub. L. 109–163, div. A, title V, §571, Jan. 6, 2006, 119 Stat. 3270; amended Pub. L. 109–364, div. A, title V, §571(a), Oct. 17, 2006, 120 Stat. 2225; Pub. L. 110–181, div. A, title X, §1063(e)(1), Jan. 28, 2008, 122 Stat. 323; Pub. L. 111–84, div. A, title V, §535, Oct. 28, 2009, 123 Stat. 2292.)
2009—Subsec. (a)(2). Pub. L. 111–84, §535(a), struck out “, and only through the 2010–2011 school year” before period at end.
Subsec. (c)(1). Pub. L. 111–84, §535(b), inserted at end “The Secretary shall prescribe such methodology with the advice and assistance of the commander of the geographic combatant command with jurisdiction over Mons, Belgium.”
2008—Pub. L. 110–181, §1063(e)(1), made technical correction to directory language of Pub. L. 109–163, §571, which enacted this section.
2006—Subsec. (a). Pub. L. 109–364, §571(a)(1), substituted “basis of—” for “basis of”, designated part of existing provisions as par. (1), substituted “; and” for period at end, and added par. (2).
Subsec. (c). Pub. L. 109–364, §571(a)(2), added subsec. (c).
Pub. L. 110–181, div. A, title X, §1063(e), Jan. 28, 2008, 122 Stat. 323, provided that the amendment made by section 1063(e) of Pub. L. 110–181 is effective as of Jan. 6, 2006, and as if included in Pub. L. 109–163 as enacted.
The Director shall assess each year the performance of the defense dependents’ education system in providing an education of high quality to children enrolled in the system. Such assessment may include the use of educational assessment measures and such other means as the Director determines to be suitable for assessing student performance.
The results of each annual assessment under subsection (a) of this section with respect to an individual enrolled in the defense dependents’ education system shall be made available to the sponsor of such individual, and summary results of each such annual assessment shall be made available to Members of Congress and to professional employees in the system.
(Pub. L. 95–561, title XIV, §1405, Nov. 1, 1978, 92 Stat. 2366.)
The President shall include in his budget for each fiscal year a separate request for funds for construction of school facilities by the Director.
(Pub. L. 95–561, title XIV, §1406, Nov. 1, 1978, 92 Stat. 2367.)
The Secretary of Defense shall establish and operate a school system for dependents in overseas areas as part of the defense dependents’ education system.
(1) Under such circumstances as the Secretary of Defense may prescribe in regulations, the Secretary may provide tuition to allow dependents in an overseas area where a school operated by the Secretary is not reasonably available to attend schools other than schools established under subsection (a) of this section on a tuition-free basis. Schools to which tuition may be paid under this subsection may include private boarding schools in the United States. Any school to which tuition is paid under this subsection to allow a dependent in an overseas area to attend such school shall provide an educational program satisfactory to the Secretary.
(2)(A) The Secretary of Defense, and the Secretary of Homeland Security with respect to the Coast Guard when it is not operating as a service of the Navy, may provide financial assistance to sponsors of dependents in overseas areas where schools operated by the Secretary of Defense under subsection (a) of this section are not reasonably available in order to assist the sponsors to defray the costs incurred by the sponsors for the attendance of the dependents at schools in such areas other than schools operated by the Secretary of Defense.
(B) The Secretary of Defense and the Secretary of Homeland Security shall each prescribe regulations relating to the availability of financial assistance under subparagraph (A). Such regulations shall, to the maximum extent practicable, be consistent with Department of State regulations relating to the availability of financial assistance for the education of dependents of Department of State personnel overseas.
(1) A member of the Armed Forces serving on active duty on September 30, 1990, who is involuntarily separated during the period beginning on October 1, 1990, and ending on December 31, 2001, and who has a dependent described in paragraph (2) who is enrolled in a school of the defense dependents’ education system (or a school for which tuition is provided under subsection (b) of this section) on the date of that separation shall be eligible to enroll or continue the enrollment of that dependent at that school (or another school serving the same community) for the final year of secondary education of that dependent in the same manner as if the member were still on active duty.
(2) A dependent referred to in paragraph (1) is a dependent who on the date of the separation of the member has completed the eleventh grade and is likely to complete secondary education within the one-year period beginning on that date.
(1) A dependent who is educated in a home school setting, but who is eligible to enroll in a school of the defense dependents’ education system, shall be permitted to use or receive auxiliary services of that school without being required to either enroll in that school or register for a minimum number of courses offered by that school. The dependent may be required to satisfy other eligibility requirements and comply with standards of conduct applicable to students actually enrolled in that school who use or receive the same auxiliary services.
(2) For purposes of paragraph (1), the term “auxiliary services” includes use of academic resources, access to the library of the school, after hours use of school facilities, and participation in music, sports, and other extracurricular and interscholastic activities.
(Pub. L. 95–561, title XIV, §1407, Nov. 1, 1978, 92 Stat. 2367; Pub. L. 101–510, div. A, title V, §504(a), Nov. 5, 1990, 104 Stat. 1559; Pub. L. 103–160, div. A, title V, §561(n), Nov. 30, 1993, 107 Stat. 1668; Pub. L. 105–261, div. A, title V, §561(k), title VI, §657, Oct. 17, 1998, 112 Stat. 2026, 2054; Pub. L. 106–398, §1 [[div. A], title V, §571(k)], Oct. 30, 2000, 114 Stat. 1654, 1654A–135; Pub. L. 107–107, div. A, title III, §353, Dec. 28, 2001, 115 Stat. 1063; Pub. L. 107–296, title XVII, §1704(e)(7), Nov. 25, 2002, 116 Stat. 2315; Pub. L. 110–181, div. A, title V, §574, Jan. 28, 2008, 122 Stat. 120.)
Section is comprised of section 1407 of Pub. L. 95–561. Subsec. (e), formerly subsec. (c), of section 1407 enacted section 489 of Title 37, Pay and Allowances of the Uniformed Services.
2008—Subsec. (b)(1). Pub. L. 110–181 inserted after first sentence “Schools to which tuition may be paid under this subsection may include private boarding schools in the United States.”
2002—Subsec. (b)(2). Pub. L. 107–296 substituted “of Homeland Security” for “of Transportation” in two places.
2001—Subsec. (d). Pub. L. 107–107 added subsec. (d) and redesignated former subsec. (d) as (e). See Codification note above.
2000—Subsec. (c)(1). Pub. L. 106–398 substituted “December 31, 2001” for “September 30, 2001”.
1998—Subsec. (b). Pub. L. 105–261, §657, inserted heading, designated existing provisions as par. (1), substituted “Under such circumstances as the Secretary of Defense may prescribe in regulations, the Secretary” for “Under such circumstances as he may by regulation prescribe, the Secretary of Defense”, and added par. (2).
Subsec. (c)(1). Pub. L. 105–261, §561(k), substituted “during the period beginning on October 1, 1990, and ending on September 30, 2001” for “during the nine-year period beginning on October 1, 1990”.
1993—Subsec. (c)(1). Pub. L. 103–160 substituted “nine-year period” for “five-year period”.
1990—Subsec. (c). Pub. L. 101–510 added subsec. (c) and redesignated former subsec. (c) as (d). See Codification note above.
Amendment by Pub. L. 107–296 effective on the date of transfer of the Coast Guard to the Department of Homeland Security, see section 1704(g) of Pub. L. 107–296, set out as a note under section 101 of Title 10, Armed Forces.
The Director shall by regulation establish a formula for determining the minimum allotment of funds necessary for the operation of each school in the defense dependents’ education system. In establishing such formula, the Director shall take into consideration—
(1) the number of students served by a school and the size of the school;
(2) special cost factors for a school, including—
(A) geographic isolation of the school,
(B) a need for special staffing, transportation, or educational programs at the school, and
(C) unusual food and housing costs,
(3) the cost of providing academic services of a high quality as required by section 921(b)(1) of this title; and
(4) such other factors as the Director considers appropriate.
Any regulation under subsection (a) of this section shall be issued, and shall become effective, in accordance with the procedures applicable to regulations required to be issued by the Secretary of Education in accordance with section 1232 of this title.
Notwithstanding the provisions of section 921(b)(3) of this title, the provisions of part B of the Individuals with Disabilities Education Act [20 U.S.C. 1411 et seq.], other than the funding and reporting provisions, shall apply to all schools operated by the Department of Defense under this chapter, including the requirement that children with disabilities, aged 3 to 5, inclusive, receive a free appropriate public education.
The responsibility to provide comparable early intervention services to infants and toddlers with disabilities and their families in accordance with individualized family service plans described in section 636 of the Individuals with Disabilities Education Act [20 U.S.C. 1436] and to comply with the procedural safeguards set forth in part C of such Act [20 U.S.C. 1431 et seq.] shall apply with respect to all eligible dependents overseas.
In carrying out paragraph (2), the Secretary shall have in effect a comprehensive, coordinated, multidisciplinary program of early intervention services for infants and toddlers with disabilities among Department of Defense entities involved in the provision of such services to such individuals.
(Pub. L. 95–561, title XIV, §1409, Nov. 1, 1978, 92 Stat. 2369; Pub. L. 102–119, §24, Oct. 7, 1991, 105 Stat. 605; Pub. L. 106–65, div. A, title III, §354(3), Oct. 5, 1999, 113 Stat. 573; Pub. L. 108–446, title III, §305(b), Dec. 3, 2004, 118 Stat. 2804.)
The Individuals with Disabilities Education Act, referred to in subsec. (c)(1), (2), is title VI of Pub. L. 91–230, Apr. 13, 1970, 84 Stat. 175, as amended. Parts B and C of the Act are classified generally to subchapters II (§1411 et seq.) and III (§1431 et seq.), respectively, of chapter 33 of this title. For complete classification of this Act to the Code, see section 1400 of this title and Tables.
2004—Subsec. (c)(2). Pub. L. 108–446 substituted “section 636” for “section 677” and “part C” for “part H”.
1999—Subsec. (b). Pub. L. 106–65, §354(3)(A), substituted “Secretary of Education” for “Department of Health, Education, and Welfare” and made technical amendment to reference in original act which appears in text as reference to section 1232 of this title.
Subsec. (c)(1). Pub. L. 106–65, §354(3)(B), struck out “by academic year 1993–1994” after “public education”.
Subsec. (c)(3). Pub. L. 106–65, §354(3)(C), substituted “Implementation” for “Implementation timelines” in heading, substituted “In carrying out paragraph (2), the Secretary shall have in effect a comprehensive” for “In carrying out the provisions of paragraph (2), the Secretary shall—”, struck out the subpar. (A) designation and “in academic year 1991–1992 and the 2 succeeding academic years, plan and develop a comprehensive” before “, coordinated”, substituted a period for the semicolon after “such individuals”, and struck out subpars. (B) and (C) which related to implementation in academic years 1994–1995, 1995–1996, and succeeding academic years.
1991—Subsec. (c). Pub. L. 102–119 amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “The provisions of the Education for All Handicapped Children Act of 1975 shall apply with respect to all schools operated by the Department of Defense under this chapter.”
Section 27 of Pub. L. 102–119 provided that:
“(a)
“(b)
“(c)
(1) The Director shall provide for the establishment of an advisory committee for each school in the defense dependents’ education system. An advisory committee for a school shall advise the principal or superintendent of the school with respect to the operation of the school, may make recommendations with respect to curriculum and budget matters, and, except as provided under paragraph (2), shall advise the local military commander with respect to problems concerning dependents’ education within the jurisdiction of the commander. The membership of each such advisory committee shall include an equal number of parents of students enrolled in the school and of employees working at the school and, when appropriate, may include a student enrolled in the school. The membership of each such advisory committee shall also include one nonvoting member designated by the organization recognized as the exclusive bargaining representative of the employees working at the school.
(2) In the case of any military installation or overseas area where there is more than one school in the defense dependents’ education system, the Director shall provide for the establishment of an advisory committee for such military installation or overseas area to advise the local military commander with respect to problems concerning dependents’ education within the jurisdiction of the commander.
Except in the case of a nonvoting member designated under the last sentence of subsection (a)(1) of this section, members of a school advisory committee established under this section shall be elected by individuals of voting age residing in the area to be served by the advisory committee. The Secretary of Defense shall by regulation prescribe the qualifications for election to an advisory committee and procedures for conducting elections of advisory committee members.
Members of school advisory committees established under this section shall serve without pay.
(Pub. L. 95–561, title XIV, §1410, Nov. 1, 1978, 92 Stat. 2369; Pub. L. 96–88, title V, §508(j)(1), (2), Oct. 17, 1979, 93 Stat. 693; Pub. L. 99–145, title XII, §1204(b)(2), Nov. 8, 1985, 99 Stat. 720.)
1985—Subsec. (a)(1). Pub. L. 99–145, §1204(b)(2)(A), included as member of the advisory committee the designee of the exclusive bargaining representative of the employees.
Subsec. (b). Pub. L. 99–145, §1204(b)(2)(B), (C), substituted “Except in the case of a nonvoting member designated under the last sentence of subsection (a)(1) of this section, members” for “Members” and “The Secretary of Defense” for “The Secretary of Education, in consultation with the Secretary of Defense,”.
1979—Subsec. (a)(1). Pub. L. 96–88, §508(j)(1), substituted “parents” for “representatives of sponsors”.
Subsec. (b). Pub. L. 96–88, §508(j)(2), empowered the Secretary of Education, in consultation with the Secretary of Defense, to prescribe election qualifications and procedures in regard to advisory committees rather than vesting such power in the Secretary of Defense exclusively.
Amendment by Pub. L. 96–88, effective May 4, 1980, with specified exceptions, see section 601 of Pub. L. 96–88, set out as an Effective Date note under section 3401 of this title.
Advisory committees 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 committee established by the President or an officer of the Federal Government, such committee is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a committee established by the Congress, its duration is otherwise provided for by law. See section 14 of Pub. L. 92–463, Oct. 6, 1972, 86 Stat. 776, set out in the Appendix to Title 5, Government Organization and Employees.
(1) There is established in the Department of Defense an Advisory Council on Dependents’ Education (hereinafter in this section referred to as the “Council”). The Council shall be composed of—
(A) the Secretary of Defense and the Secretary of Education, or their respective designees;
(B) 12 individuals appointed jointly by the Secretary of Defense and the Secretary of Education who shall be individuals who have demonstrated an interest in the field of primary or secondary education and who shall include representatives of professional employee organizations, school administrators, and parents of students enrolled in the defense dependents’ education system, and one student enrolled in such system; and
(C) a representative of the Secretary of Defense and of the Secretary of Education.
(2) Individuals appointed to the Council from professional employee organizations shall be individuals designated by those organizations.
(3) The Secretary of Defense, or the Secretary's designee, and the Secretary of Education, or the Secretary's designee, shall serve as cochairmen of the Council.
(4) The Director shall be the Executive Secretary of the Council.
The term of office of each member of the Council appointed under subsection (a)(2) of this section shall be three years, except that—
(1) of the members first appointed under such paragraph, four shall serve for a term of one year, four shall serve for a term of two years, and four shall serve for a term of three years, as determined by the Secretary of Defense and the Secretary of Education at the time of their appointment, and
(2) any member appointed to fill a vacancy occurring before the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term.
No member appointed under subsection (a)(2) of this section shall serve more than two full terms on the Council.
The Council shall meet at least two times each year. The functions of the Council shall be to—
(1) recommend to the Director general policies for operation of the defense dependents’ education system with respect to curriculum selection, administration, and operation of the system,
(2) provide information to the Director from other Federal agencies concerned with primary and secondary education with respect to education programs and practices which such agencies have found to be effective and which should be considered for inclusion in the defense dependents’ education system,
(3) advise the Director on the design of the study and the selection of the contractor referred to in section 930(a)(2) of this title, and
(4) perform such other tasks as may be required by the Secretary of Defense.
Members of the Council who are not in the regular full-time employ of the United States shall, while attending meetings or conferences of the Council or otherwise engaged in the business of the Council, be entitled to receive compensation at the daily equivalent of the rate specified at the time of such service for level IV of the Executive Schedule under section 5315 of title 5, including traveltime, and while so serving on the business of the Council away from their homes or regular places of business, they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5 for persons employed intermittently in the Government service.
The Council shall continue in existence until terminated by law.
(Pub. L. 95–561, title XIV, §1411, Nov. 1, 1978, 92 Stat. 2370; Pub. L. 96–88, title V, §508(j)(3)–(8), Oct. 17, 1979, 93 Stat. 693, 694; Pub. L. 99–145, title XII, §1204(b)(3)–(5), Nov. 8, 1985, 99 Stat. 720, 721; Pub. L. 106–65, div. A, title III, §354(4), Oct. 5, 1999, 113 Stat. 573.)
1999—Subsec. (d). Pub. L. 106–65 substituted “level IV of the Executive Schedule under section 5315 of title 5” for “grade GS–18 in section 5332 of title 5”.
1985—Subsec. (a). Pub. L. 99–145, §1204(b)(3)(A), amended subsec. (a) generally. Prior to amendment subsec. (a) read as follows: “There is established in the Department of Education an Advisory Council on Dependents’ Education (hereinafter in this section referred to as the ‘Council’). The Council shall be composed of—
“(1) the Assistant Secretary of Defense for Manpower, Reserve Affairs, and Logistics, and the Administrator of Education for Overseas Dependents of such department, who shall be co-chairman of the Council;
“(2) twelve individuals appointed by the Secretary of Education, who shall be individuals who have demonstrated an interest in the fields of primary or secondary education and who shall include representatives of professional employee organizations, school administrators, parents of dependents enrolled in the dependents’ education system, and one student enrolled in such system;
“(3) a representative of the Secretary of Education and of the Secretary of Defense.
The Director shall be the Executive Secretary of the Council.”
Subsec. (b)(1). Pub. L. 99–145, §1204(b)(4), inserted reference to Secretary of Defense.
Subsec. (c). Pub. L. 99–145, §1204(b)(5)(A), substituted “two times each year” for “four times each year” in provisions before par. (1).
Subsec. (c)(2), (3). Pub. L. 99–145, §1204(b)(5)(B), (C), redesignated par. (3) as (2), and struck out par. (2) which required the Council to make recommendations to the Director and to the Secretary of Education on the orderly transfer of the functions under this chapter to the Secretary and Department of Education.
Subsec. (c)(4), (5). Pub. L. 99–145, §1204(b)(5)(C), (D), redesignated par. (5) as (4), and substituted Secretary of Defense for Secretary of Education. Former par. (4) redesignated (3).
1979—Subsec. (a). Pub. L. 96–88, §508(j)(3), substituted “Department of Education” for “Department of Defense” in text preceding par. (1).
Subsec. (a)(1). Pub. L. 96–88, §508(j)(4), provided that the Administrator of Education for Overseas Dependents of the Department of Education was to be a member of the council and its co-chairman.
Subsec. (a)(2). Pub. L. 96–88, §508(j)(5), substituted “Secretary of Education” for “Assistant Secretary”, “demonstrated an interest” for “versed by training or experience”, “parents of dependents” for “sponsors of students”, and “dependents’ education system” for “defense dependents’ education system”.
Subsec. (a)(3). Pub. L. 96–88, §508(j)(5), required membership on the Council for representatives of the Secretaries of Education and Defense and struck out requirements for representation of the Commissioner of Education, Director of the National Institute of Education, Director of the Educational Directorate of the National Science Foundation, Chairman of the National Endowment for the Arts, Chairman of the National Endowment for the Humanities, and the Secretaries of the military departments.
Subsec. (b)(1). Pub. L. 96–88, §508(j)(6), substituted “Secretary of Education” for “Assistant Secretary”.
Subsec. (c)(2) to (5). Pub. L. 96–88, §508(j)(7), (8), added par. (2), redesignated former pars. (2), (3), and (4) as (3), (4), and (5), respectively, and in par. (5), as so redesignated, substituted “Secretary of Education” for “Assistant Secretary”.
Amendment by Pub. L. 96–88 effective May 4, 1980, with specified exceptions, see section 601 of Pub. L. 96–88, set out as an Effective Date note under section 3401 of this title.
(1) The Director may from time to time, but not more frequently than once a year, provide for a comprehensive study of the entire defense dependents’ education system. Any such study shall include a detailed analysis of the education programs and the facilities of the system.
(2) Any study under paragraph (1) shall be conducted by a contractor selected by the Director after an open competition. After conducting such study, the contractor shall submit a report to the Director describing the results of the study and giving its assessment of the defense dependents’ education system.
In designing the specifications for any study to be conducted pursuant to subsection (a)(1) of this section, and in selecting a contractor to conduct such study under subsection (a)(2) of this section, the Director shall consult with the Advisory Council on Dependents’ Education established under section 929 of this title.
The Director shall submit to the Congress any report submitted to him under subsection (a)(2) of this section describing the results of a study carried out pursuant to subsection (a)(1) of this section, together with the recommendations, if any, of the contractor for legislation or any increase in funding needed to improve the defense dependents’ education system. Notwithstanding any law, rule, or regulation to the contrary, such report shall not be submitted to any review before its transmittal to the Congress, but the Secretary of Defense shall, at the time of the transmittal of such report, submit to the Congress such recommendations as he may have with respect to legislation or any increase in funding needed to improve the defense dependents’ education system.
(Pub. L. 95–561, title XIV, §1412, Nov. 1, 1978, 92 Stat. 2371; Pub. L. 96–46, §2(a)(8), Aug. 6, 1979, 93 Stat. 340; Pub. L. 106–65, div. A, title III, §354(5), Oct. 5, 1999, 113 Stat. 573.)
1999—Subsec. (a)(1). Pub. L. 106–65, §354(5)(A), substituted “The Director may from time to time, but not more frequently than once a year, provide for” for “As soon as practicable after November 1, 1978, the Director shall provide for” and “system. Any such study” for “system, which”.
Subsec. (a)(2). Pub. L. 106–65, §354(5)(B), substituted “Any study under paragraph (1)” for “The study required by this subsection” and struck out “not later than two years after July 1, 1979,” after “shall submit a report to the Director”.
Subsec. (b). Pub. L. 106–65, §354(5)(C), substituted “any study” for “the study”.
Subsec. (c). Pub. L. 106–65, §354(5)(D), substituted “any report” for “not later than one year after July 1, 1979, the report” and “a study” for “the study”.
Subsec. (d). Pub. L. 106–65, §354(5)(E), struck out subsec. (d) which read as follows: “The Director may provide for additional studies of the defense dependents’ education system to be conducted in accordance with the provisions of this section, but such studies shall not be conducted more frequently than once a year. A report of each study shall be submitted to the Congress in accordance with subsection (c) of this section, and the second sentence of such subsection shall apply with respect to the transmission of each such report.”
1979—Subsec. (a)(2). Pub. L. 96–46 substituted “two years after July 1, 1979” for “one year after July 1, 1979”.
Section 8 of Pub. L. 96–46 provided that: “The amendments made by this Act [enacting section 3164 of this title, amending this section, sections 240, 241–1, 1211a, 1221–3, 1221h, 1226c, 1232g, 2308, 2310, 2603, 2721, 2733 to 2735, 2740, 2762, 2763, 2772, 2782, 2902, 3084, 3163, 3200, 3289, 3381 to 3386 of this title, and sections 2001, 2002, 2006, 2008, 2012 of Title 25, Indians, enacting a provision set out as a note under section 1221e of this title, and amending provisions set out as notes under sections 236, 1211b, 1221–1, 1231a, and 2701 of this title and section 13 of Title 25] shall take effect October 1, 1978.”
The Secretary of Defense shall issue regulations to carry out this chapter. Such regulations shall—
(1) prescribe the educational goals and objectives of the defense dependents’ education system,
(2) establish standards for the development of curricula for the system and for the selection of instructional materials,
(3) prescribe professional standards for professional personnel employed in the system,
(4) provide for arrangements between the Director and commanders of military installations for necessary logistic support for schools of the system located on military installations,
(5) provide for a recertification program for professional personnel employed in the system, and
(6) provide for such other matters as may be necessary to ensure the efficient organization and operation of the defense dependents’ education system.
(Pub. L. 95–561, title XIV, §1413, Nov. 1, 1978, 92 Stat. 2372; Pub. L. 106–65, div. A, title III, §354(6), Oct. 5, 1999, 113 Stat. 574.)
1999—Subsec. (d). Pub. L. 106–65 substituted “The Secretary” for “Not later than 180 days after July 1, 1979, the Secretary” in introductory provisions.
For purposes of this chapter:
(1) The term “dependent” means a minor individual—
(A) who has not completed secondary schooling, and
(B) who is the child, stepchild, adopted child, ward, or spouse of a sponsor, or who is a resident in the household of a sponsor who stands in loco parentis to such individual and who receives one-half or more of his support from such sponsor.
(2) The term “sponsor” means a person—
(A) who is—
(i) a member of the Armed Forces serving on active duty, or
(ii) a full-time civilian officer or employee of the Department of Defense and a citizen or national of the United States; and
(B) who is authorized to transport dependents to or from an overseas area at Government expense and is provided an allowance for living quarters in that area.
(3) The term “overseas area” means any area situated outside the United States.
(4) The term “United States”, when used in a geographical sense, means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States (excluding the Trust Territory of the Pacific Islands and Midway Island).
(5) The term “involuntarily separated” has the meaning given that term in section 1141 of title 10.
(6) The term “Director” means the Director of the Department of Defense Education Activity.
(Pub. L. 95–561, title XIV, §1414, Nov. 1, 1978, 92 Stat. 2372; Pub. L. 101–189, div. A, title III, §325(a), Nov. 29, 1989, 103 Stat. 1415; Pub. L. 101–510, div. A, title V, §504(b), Nov. 5, 1990, 104 Stat. 1559; Pub. L. 106–65, div. A, title III, §354(7), Oct. 5, 1999, 113 Stat. 574.)
1999—Par. (6). Pub. L. 106–65 added par. (6).
1990—Par. (5). Pub. L. 101–510 added par. (5).
1989—Par. (2). Pub. L. 101–189 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The term ‘sponsor’ means—
“(A) a member of the Armed Forces serving on active duty, or
“(B) a civilian officer or employee of the Department of Defense paid from appropriated funds.”
Amendment by Pub. L. 101–189 applicable with respect to periods of enrollment in schools of the defense dependents’ education system beginning after Sept. 30, 1989, see section 325(c) of Pub. L. 101–189, set out as a note under section 923 of this title.
For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.
The Congress finds and declares the following:
(1) The arts and the humanities belong to all the people of the United States.
(2) The encouragement and support of national progress and scholarship in the humanities and the arts, while primarily a matter for private and local initiative, are also appropriate matters of concern to the Federal Government.
(3) An advanced civilization must not limit its efforts to science and technology alone, but must give full value and support to the other great branches of scholarly and cultural activity in order to achieve a better understanding of the past, a better analysis of the present, and a better view of the future.
(4) Democracy demands wisdom and vision in its citizens. It must therefore foster and support a form of education, and access to the arts and the humanities, designed to make people of all backgrounds and wherever located masters of their technology and not its unthinking servants.
(5) It is necessary and appropriate for the Federal Government to complement, assist, and add to programs for the advancement of the humanities and the arts by local, State, regional, and private agencies and their organizations. In doing so, the Government must be sensitive to the nature of public sponsorship. Public funding of the arts and humanities is subject to the conditions that traditionally govern the use of public money. Such funding should contribute to public support and confidence in the use of taxpayer funds. Public funds provided by the Federal Government must ultimately serve public purposes the Congress defines.
(6) The arts and the humanities reflect the high place accorded by the American people to the nation's rich cultural heritage and to the fostering of mutual respect for the diverse beliefs and values of all persons and groups.
(7) The practice of art and the study of the humanities require constant dedication and devotion. While no government can call a great artist or scholar into existence, it is necessary and appropriate for the Federal Government to help create and sustain not only a climate encouraging freedom of thought, imagination, and inquiry but also the material conditions facilitating the release of this creative talent.
(8) The world leadership which has come to the United States cannot rest solely upon superior power, wealth, and technology, but must be solidly founded upon worldwide respect and admiration for the Nation's high qualities as a leader in the realm of ideas and of the spirit.
(9) Americans should receive in school, background and preparation in the arts and humanities to enable them to recognize and appreciate the aesthetic dimensions of our lives, the diversity of excellence that comprises our cultural heritage, and artistic and scholarly expression.
(10) It is vital to a democracy to honor and preserve its multicultural artistic heritage as well as support new ideas, and therefore it is essential to provide financial assistance to its artists and the organizations that support their work.
(11) To fulfill its educational mission, achieve an orderly continuation of free society, and provide models of excellence to the American people, the Federal Government must transmit the achievement and values of civilization from the past via the present to the future, and make widely available the greatest achievements of art.
(12) In order to implement these findings and purposes, it is desirable to establish a National Foundation on the Arts and the Humanities.
(Pub. L. 89–209, §2, Sept. 29, 1965, 79 Stat. 845; Pub. L. 91–346, §2, July 20, 1970, 84 Stat. 443; Pub. L. 93–133, §2(a)(1), Oct. 19, 1973, 87 Stat. 462; renumbered title I, §2, and amended Pub. L. 98–306, §§2, 3, May 31, 1984, 98 Stat. 223; renumbered §2 and amended Pub. L. 99–194, title I, §§101(1), 102, Dec. 20, 1985, 99 Stat. 1332; Pub. L. 101–512, title III, §318 [title I, §101], Nov. 5, 1990, 104 Stat. 1960, 1961.)
1990—Pub. L. 101–512 amended section generally, substituting provisions relating to declaration of findings and purposes consisting of pars. (1) to (12) for provisions relating to declaration of purpose consisting of cls. (1) to (9).
1985—Cl. (2). Pub. L. 99–194, §102(1), struck out “man's” before “scholarly and cultural activity”.
Cl. (3). Pub. L. 99–194, §102(2), inserted “, and access to the arts and the humanities,” after “form of education” and substituted “people of all backgrounds and wherever located” for “men”.
Cls. (8), (9). Pub. L. 99–194, §102(3)–(5), added cl. (8) and redesignated former cl. (8) as (9).
1984—Cls. (6) to (8). Pub. L. 98–306, §3, added cl. (6) and redesignated former cls. (6) and (7) as (7) and (8), respectively.
1973—Cl. (7). Pub. L. 93–133 struck out provisions relating to strengthening the responsibilities of the Office of Education with respect to education in the arts and the humanities.
1970—Cl. (2). Pub. L. 91–346 inserted “in order to achieve a better understanding of the past, a better analysis of the present, and a better view of the future”.
Section 318 [title IV, §403] of Pub. L. 101–512 provided that:
“(a)
“(b)
Section 2(b) of Pub. L. 93–133 provided that: “The amendments made by subsection (a) [amending this section and sections 952 and 954 to 960 of this title and repealing sections 962 and 963 of this title] shall be effective on and after July 1, 1973.”
Section 318 of Pub. L. 101–512 provided that: “This section [enacting sections 954a and 969 of this title, amending this section, sections 952, 954, 955, 956, 958, 959, 960, 963, 964, 965, 967, and 974 of this title, and section 5315 of Title 5, Government Organization and Employees, and enacting notes under this section and section 954 of this title] may be cited as the ‘Arts, Humanities, and Museums Amendments of 1990’.”
Section 1 of Pub. L. 99–194 provided that: “This Act [enacting section 177 of title 2, The Congress, amending this section and sections 952 to 955, 956, 957, 958 to 960, 963, 964, 967, 971, 972, and 974 of this title, enacting provisions set out as notes under sections 954 and 972 of this title, and amending provisions set out as a note under this section] may be cited as the ‘Arts, Humanities, and Museums Amendments of 1985’.”
Section 1 of Pub. L. 98–306 provided that: “This Act [enacting section 955b of this title and section 310 of Title 25, Indians, amending this section and sections 952 to 955, 956, 957, 958 to 960, 962, 963, 964, and 967 of this title, amending provisions set out as a note under this section and repealing provisions set out as notes under sections 960 and 967 of this title] may be cited as the ‘National Foundation on the Arts and the Humanities Act Amendments of 1983’.”
Pub. L. 96–496, §1, Dec. 4, 1980, 94 Stat. 2583, provided that: “This Act [amending sections 952, 954, 955, 956, 957, 958 to 960, 962, 963, 964, 965, 967, 974, and 3473 of this title] may be cited as the ‘Arts and Humanities Act of 1980’.”
Pub. L. 94–462, §1, Oct. 8, 1976, 90 Stat. 1971, provided: “That this Act [enacting sections 961 to 968 of this title, amending sections 954, 955, 956, 957, 958, 960, and 1867 of this title, and enacting provisions set out as notes under sections 956, 960, and 961 of this title] may be cited as the ‘Arts, Humanities, and Cultural Affairs Act of 1976’.”
Section 1 of Pub. L. 93–133 provided: “That this Act [amending this section and sections 351a, 952, 954, 955, 956, 957, and 958 to 960 of this title, repealing sections 962 and 963 of this title, and enacting provisions set out as notes under this section and section 351a of this title] may be cited as the ‘National Foundation on the Arts and the Humanities Amendments of 1973’.”
Section 1 of Pub. L. 91–346 provided: “That this Act [amending this section and sections 952, 954, 955, 956, 957, and 958 to 960 of this title, repealing sections 781 to 788 and 790 of this title, and enacting provisions set out as notes under section 955 of this title and section 781 of this title] may be cited as ‘The National Foundation on the Arts and the Humanities Amendments of 1970’.”
Section 1 of Pub. L. 89–209, as renumbered title I, §1, and amended by Pub. L. 98–306, §2, May 31, 1984, 98 Stat. 223; renumbered §1 and amended by Pub. L. 99–194, title I, §101, Dec. 20, 1985, 99 Stat. 1332, provided that: “This Act [enacting this subchapter, amending sections 784 to 786 of this title, repealing section 789 of this title, and enacting provisions formerly set out as a note under section 785 of this title] may be cited as the ‘National Foundation on the Arts and the Humanities Act of 1965’.”
Section 318 [title IV, §§401, 402] of Pub. L. 101–512 provided that:
“It is the sense of the Congress that a recipient (including a nation, individual, group, or organization) of any form of subsidy, aid, or other Federal assistance under the Acts amended by this Act [probably means this section, see Short Title of 1990 Amendment note above] should, in expending that assistance, purchase American-made equipment and products.
“Any entity that provides a form of subsidy, aid, or other Federal assistance under the Acts amended by this Act shall provide to each recipient of such form of subsidy, aid, or other Federal assistance a notice describing the sense of the Congress stated under section 401.”
Pub. L. 95–272, title I, §§101–109, May 3, 1978, 92 Stat. 222–224, called for a White House Conference on the Arts to be held no later than Dec. 31, 1979, to help develop a climate in which the arts can flourish and to formulate recommendations relating to the appropriate growth of the arts in all parts of the Nation, established a National Conference Planning Council on the Arts to provide guidance and planning for the Conference, directed the Council to submit a report of the Conference to the President and to the Congress no later than 180 days following the date on which the Conference was called, and provided the Council cease to exist 180 days, unless extended by the President, but in no event to exceed one year, after submission of the report.
Pub. L. 95–272, title II, §§201–209, May 3, 1978, 92 Stat. 224–226, called for a White House Conference on the Humanities to be held no later than Dec. 31, 1979, to help develop a climate in which the humanities can flourish and to formulate recommendations relating to the appropriate growth of the humanities in all parts of the Nation, established a National Planning Council on the Humanities to provide guidance and planning for the Conference, directed the Council to submit a report of the Conference to the President and to the Congress no later than 180 days following the date on which the Conference was called, and provided the Council cease to exist 180 days, unless extended by the President, but in no event to exceed one year, after submission of the report.
Ex. Ord. No. 12275, Jan. 16, 1981, 46 F.R. 5857, which established the Design Liaison Council and provided for its membership, functions, etc., was revoked by Ex. Ord. No. 12379, §10, Aug. 17, 1982, 47 F.R. 36099, set out as a note under section 14 of the Federal Advisory Committee Act in the Appendix to Title 5, Government Organization and Employees.
As used in this subchapter—
(a) The term “humanities” includes, but is not limited to, the study and interpretation of the following: language, both modern and classical; linguistics; literature; history; jurisprudence; philosophy; archeology; comparative religion; ethics; the history, criticism, and theory of the arts; those aspects of the social sciences which have humanistic content and employ humanistic methods; and the study and application of the humanities to the human environment with particular attention to reflecting our diverse heritage, traditions, and history and to the relevance of the humanities to the current conditions of national life.
(b) The term “the arts” includes, but is not limited to, music (instrumental and vocal), dance, drama, folk art, creative writing, architecture and allied fields, painting, sculpture, photography, graphic and craft arts, industrial design, costume and fashion design, motion pictures, television, radio, film, video, tape and sound recording, the arts related to the presentation, performance, execution, and exhibition of such major art forms, all those traditional arts practiced by the diverse peoples of this country.1 and the study and application of the arts to the human environment.
(c) The term “production” means plays (with or without music), ballet, dance and choral performances, concerts, recitals, operas, exhibitions, readings, motion pictures, television, radio, film, video, and tape and sound recordings, and any other activities involving the execution or rendition of the arts and meeting such standards as may be approved by the National Endowment for the Arts established by section 954 of this title.
(d) The term “project” means programs organized to carry out the purposes of this subchapter, including programs to foster American artistic creativity, to commission works of art, to create opportunities for individuals to develop artistic talents when carried on as a part of a program otherwise included in this definition, and to develop and enhance the widest public knowledge and understanding of the arts, and includes, where appropriate, rental or purchase of facilities, purchase or rental of land, and acquisition of equipment. Such term also includes—
(1) the renovation of facilities if (A) the amount of the expenditure of Federal funds for such purpose in the case of any project does not exceed $250,000, or (B) two-thirds of the members of the National Council on the Arts or the National Council on the Humanities, as the case may be (who are present and voting) approve of the grant or contract involving an expenditure for such purpose; and
(2) for purposes of sections 954(p), 956(c)(10), and 956(h) of this title only, the construction of facilities if (A) such construction is for demonstration purposes or under unusual circumstances where there is no other manner in which to accomplish an artistic or humanistic purpose, and (B) two-thirds of the members of the National Council on the Arts and the National Council on the Humanities, as the case may be, (who are present and voting) approve of the grant or contract involving an expenditure for such purpose.
(e) The term “group” includes any State or other public agency, and any nonprofit society, institution, organization, association, museum, or establishment in the United States, whether or not incorporated.
(f) The term “workshop” means an activity the primary purpose of which is to encourage the artistic development or enjoyment of amateur, student, or other nonprofessional participants, or to promote scholarship and teaching among the participants.
(g) The term “State” includes, in addition to the several States of the Union, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands.
(h) The term “local arts agency” means a community organization, or an agency of local government, that primarily provides financial support, services, or other programs for a variety of artists and arts organizations, for the benefit of the community as a whole.
(i) The term “developing arts organization” means a local arts organization of high artistic promise which—
(1) serves as an important source of local arts programming in a community; and
(2) has the potential to develop artistically and institutionally to broaden public access to the arts in rural and innercity areas and other areas that are underserved artistically.
(j) The term “determined to be obscene” means determined, in a final judgment of a court of record and of competent jurisdiction in the United States, to be obscene.
(k) The term “final judgment” means a judgment that is either—
(1) not reviewed by any other court that has authority to review such judgment; or
(2) is not reviewable by any other court.
(l) The term “obscene” means with respect to a project, production, workshop, or program that—
(1) the average person, applying contemporary community standards, would find that such project, production, workshop, or program, when taken as a whole, appeals to the prurient interest;
(2) such project, production, workshop, or program depicts or describes sexual conduct in a patently offensive way; and
(3) such project, production, workshop, or program, when taken as a whole, lacks serious literary, artistic, political, or scientific value.
(Pub. L. 89–209, §3, Sept. 29, 1965, 79 Stat. 845; Pub. L. 90–348, §§1, 7, June 18, 1968, 82 Stat. 184, 187; Pub. L. 91–346, §3, July 20, 1970, 84 Stat. 443; Pub. L. 93–133, §2(a)(2), Oct. 19, 1973, 87 Stat. 462; Pub. L. 96–496, title I, §101, Dec. 4, 1980, 94 Stat. 2583; renumbered title I, §3, Pub. L. 98–306, §2, May 31, 1984, 98 Stat. 223; renumbered §3 and amended Pub. L. 99–194, title I, §§101(1), 103, Dec. 20, 1985, 99 Stat. 1332; Pub. L. 101–512, title III, §318 [title I, §102], Nov. 5, 1990, 104 Stat. 1960, 1962.)
1990—Subsec. (b). Pub. L. 101–512, §318 [title I, §102(a)(1), (b)(1)], inserted “all those traditional arts practiced by the diverse peoples of this country.” after “forms,” and “film, video,” after “radio,”.
Subsec. (c). Pub. L. 101–512, §318 [title I, §102(b)(2)], inserted “film, video,” after “radio,”.
Subsec. (d). Pub. L. 101–512, §318 [title I, §102(b)(3)(A)], inserted “the widest” after “enhance”.
Subsec. (d)(2). Pub. L. 101–512, §318 [title I, §102(b)(3)(B)], which directed the substitution of “sections 954(p), 956(c)(10),” for “sections 954(1)”, was executed by making the substitution for “sections 954(l)” to reflect the probable intent of Congress.
Subsecs. (h), (i). Pub. L. 101–512, §318 [title I, §102(a)(2)], added subsecs. (h) and (i).
Subsecs. (j) to (l). Pub. L. 101–512, §318 [title I, §102(c)], added subsecs. (j) to (l).
1985—Subsec. (a). Pub. L. 99–194, §103(1), substituted “study and interpretation of the following” for “study of the following” and inserted “to reflecting our diverse heritage, traditions, and history and” after “particular attention”.
Subsec. (d)(2). Pub. L. 99–194, §103(2), inserted “for purposes of sections 954(l) and 956(h) of this title only,” before “the construction of facilities if”, “or humanistic” after “artistic”, and “and the National Council on the Humanities, as the case may be,” after “the National Council on the Arts”.
1980—Subsec. (a). Pub. L. 96–496, §101(a), substituted “and theory of the arts” for “theory, and practice of the arts”.
Subsec. (d)(1)(B). Pub. L. 96–496, §101(b), inserted “or the National Council on the Humanities, as the case may be”.
Subsec. (g). Pub. L. 96–496, §101(c), inserted “the Northern Mariana Islands”.
1973—Subsec. (d). Pub. L. 93–133 substituted “or purchase of facilities” for “, purchase, renovation, or construction of facilities” and added pars. (1) and (2).
1970—Subsec. (a). Pub. L. 91–346 extended term “humanities” to include the study of comparative religion and ethics, and emphasized that particular attention be paid to relevance of humanities to current conditions of national life when engaging in study and application of humanities to human environment.
1968—Subsec. (a). Pub. L. 90–348, §7, extended term “humanities” to include the study and application of enumerated fields to human environment.
Subsec. (b). Pub. L. 90–348, §7, extended term “arts” to include study and application of enumerated art forms to human environment.
Subsec. (f). Pub. L. 90–348, §1, substituted “activity” for “production” in definition of “workshop” and extended enumerated purposes to include promotion of scholarship and teaching among participants.
Amendment by Pub. L. 101–512 effective Oct. 1, 1990, see section 318 [title IV, §403(a)] of Pub. L. 101–512, set out as a note under section 951 of this title.
Amendment by Pub. L. 93–133 effective on and after July 1, 1973, see section 2(b) of Pub. L. 93–133, set out as a note under section 951 of this title.
1 So in original. The period probably should be a comma.
There is established a National Foundation on the Arts and the Humanities (hereinafter referred to as the “Foundation”), which shall be composed of a National Endowment for the Arts, a National Endowment for the Humanities, a Federal Council on the Arts and the Humanities, and an Institute of Museum and Library Services.
The purpose of the Foundation shall be to develop and promote a broadly conceived national policy of support for the humanities and the arts in the United States, and for institutions which preserve the cultural heritage of the United States pursuant to this subchapter.
In the administration of this subchapter no department, agency, officer, or employee of the United States shall exercise any direction, supervision, or control over the policy determination, personnel, or curriculum, or the administration or operation of any school or other non-Federal agency, institution, organization, or association.
(Pub. L. 89–209, §4, Sept. 29, 1965, 79 Stat. 846; renumbered title I, §4, and amended Pub. L. 98–306, §§2, 4, May 31, 1984, 98 Stat. 223; renumbered §4 and amended Pub. L. 99–194, title I, §§101(1), 104, Dec. 20, 1985, 99 Stat. 1332, 1333; Pub. L. 111–340, title II, §208(1), Dec. 22, 2010, 124 Stat. 3602.)
2010—Subsec. (a). Pub. L. 111–340 substituted “Institute of Museum and Library Services” for “Institute of Museum Services”.
1985—Subsec. (a). Pub. L. 99–194, §104, struck out a second comma after “a National Endowment for the Humanities” and “(hereinafter established)” after “Institute of Museum Services”.
1984—Subsec. (a). Pub. L. 98–306, §4(a), substituted “, a Federal Council” for “and a Federal Council” and inserted “, and an Institute of Museum Services”.
Subsec. (b). Pub. L. 98–306, §4(b), inserted “, and for institutions which preserve the cultural heritage of the United States”.
There is established within the Foundation a National Endowment for the Arts.
(1) The Endowment shall be headed by a chairperson, to be known as the Chairperson of the National Endowment for the Arts, who shall be appointed by the President, by and with the advice and consent of the Senate.
(2) The term of office of the Chairperson shall be four years and the Chairperson shall be eligible for reappointment. The provisions of this subsection shall apply to any person appointed to fill a vacancy in the office of Chairperson. Upon expiration of the Chairperson's term of office the Chairperson shall serve until the Chairperson's successor shall have been appointed and shall have qualified.
The Chairperson, with the advice of the National Council on the Arts, is authorized to establish and carry out a program of contracts with, or grants-in-aid or loans to, groups or, in appropriate cases, individuals of exceptional talent engaged in or concerned with the arts, for the purpose of enabling them to provide or support—
(1) projects and productions which have substantial national or international artistic and cultural significance, giving emphasis to American creativity and cultural diversity and to the maintenance and encouragement of professional excellence;
(2) projects and productions, meeting professional standards or standards of authenticity or tradition, irrespective of origin, which are of significant merit and which, without such assistance, would otherwise be unavailable to our citizens for geographic or economic reasons;
(3) projects and productions that will encourage and assist artists and enable them to achieve wider distribution of their works, to work in residence at an educational or cultural institution, or to achieve standards of professional excellence;
(4) projects and productions which have substantial artistic and cultural significance and that reach, or reflect the culture of, a minority, inner city, rural, or tribal community;
(5) projects and productions that will encourage public knowledge, education, understanding, and appreciation of the arts;
(6) workshops that will encourage and develop the appreciation and enjoyment of the arts by our citizens;
(7) programs for the arts at the local level;
(8) projects that enhance managerial and organizational skills and capabilities;
(9) projects, productions, and workshops of the kinds described in paragraphs (1) through (8) through film, radio, video, and similar media, for the purpose of broadening public access to the arts; and
(10) other relevant projects, including surveys, research, planning, and publications relating to the purposes of this subsection.
In the case of publications under paragraph (10) of this subsection such publications may be supported without regard for the provisions of section 501 of title 44 only if the Chairperson consults with the Joint Committee on Printing of the Congress and the Chairperson submits to the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives a report justifying any exemption from such section 501. Any loans made by the Chairperson under this subsection shall be made in accordance with terms and conditions approved by the Secretary of the Treasury. In selecting individuals and groups of exceptional talent as recipients of financial assistance to be provided under this subsection, the Chairperson shall give particular regard to artists and artistic groups that have traditionally been underrepresented.
No payment shall be made under this section except upon application therefor which is submitted to the National Endowment for the Arts in accordance with regulations issued and procedures established by the Chairperson. In establishing such regulations and procedures, the Chairperson shall ensure that—
(1) artistic excellence and artistic merit are the criteria by which applications are judged, taking into consideration general standards of decency and respect for the diverse beliefs and values of the American public; and
(2) applications are consistent with the purposes of this section. Such regulations and procedures shall clearly indicate that obscenity is without artistic merit, is not protected speech, and shall not be funded. Projects, productions, workshops, and programs that are determined to be obscene are prohibited from receiving financial assistance under this subchapter from the National Endowment for the Arts.
The disapproval or approval of an application by the Chairperson shall not be construed to mean, and shall not be considered as evidence that, the project, production, workshop, or program for which the applicant requested financial assistance is or is not obscene.
The total amount of any grant to any group pursuant to subsection (c) of this section shall not exceed 50 per centum of the total cost of such project or production, except that not more than 20 per centum of the funds allotted by the National Endowment for the Arts for the purposes of subsection (c) of this section for any fiscal year may be available for grants and contracts in that fiscal year without regard to such limitation.
Any group shall be eligible for financial assistance pursuant to this section only if (1) no part of its net earnings inures to the benefit of any private stockholder or stockholders, or individual or individuals, and (2) donations to such group are allowable as a charitable contribution under the standards of subsection (c) of section 170 of title 26.
(1) The Chairperson, with the advice of the National Council on the Arts, is authorized to establish and carry out a program of grants-in-aid to assist the several States in supporting existing projects and productions which meet the standards enumerated in subsection (c) of this section, and in developing projects and productions in the arts in such a manner as will furnish adequate programs, facilities, and services in the arts to all the people and communities in each of the several States.
(2) In order to receive assistance under this subsection in any fiscal year, a State shall submit an application for such grants at such time as shall be specified by the Chairperson and accompany such application with a plan which the Chairperson finds—
(A) designates or provides for the establishment of a State agency (hereinafter in this section referred to as the “State agency”) as the sole agency for the administration of the State plan;
(B) provides that funds paid to the State under this subsection will be expended solely on projects and productions approved by the State agency which carry out one or more of the objectives of subsection (c) of this section;
(C) provides that the State agency will make such reports, in such form and containing such information, as the Chairperson may from time to time require, including a description of the progress made toward achieving the goals of the State plan;
(D) provides—
(i) assurances that the State agency has held, after reasonable notice, public meetings in the State to allow all groups of artists, interested organizations, and the public to present views and make recommendations regarding the State plan; and
(ii) a summary of such recommendations and the State agency's response to such recommendations; and
(E) contains—
(i) a description of the level of participation during the most recent preceding year for which information is available by artists, artists’ organizations, and arts organizations in projects and productions for which financial assistance is provided under this subsection;
(ii) for the most recent preceding year for which information is available, a description of the extent projects and productions receiving financial assistance from the State arts agency are available to all people and communities in the State; and
(iii) a description of projects and productions receiving financial assistance under this subsection that exist or are being developed to secure wider participation of artists, artists’ organizations, and arts organizations identified under clause (i) of this subparagraph or that address the availability of the arts to all people or communities identified under clause (ii) of this subparagraph.
No application may be approved unless the accompanying plan satisfies the requirements specified in this subsection.
(3) Of the sums available to carry out this subsection for any fiscal year, each State which has a plan approved by the Chairperson shall be allotted at least $200,000. If the sums appropriated are insufficient to make the allotments under the preceding sentence in full, such sums shall be allotted among such States in equal amounts. In any case where the sums available to carry out this subsection for any fiscal year are in excess of the amount required to make the allotments under the first sentence of this paragraph—
(A) the amount of such excess which is no greater than 25 per centum of the sums available to carry out this subsection for any fiscal year shall be available only to the Chairperson for making grants under this subsection to States and regional groups, and
(B) the amount of such excess, if any, which remains after reserving in full for the Chairperson the amount required under clause (A) shall be allotted among the States which have plans approved by the Chairperson in equal amounts
but in no event shall any State be allotted less than $200,000.
(4)(A) The amount of each allotment to a State for any fiscal year under this subsection shall be available to each State, which has a plan approved by the Chairperson in effect on the first day of such fiscal year, to pay not more than 50 per centum of the total cost of any project or production described in paragraph (1). The amount of any allotment made under paragraph (3) for any fiscal year which exceeds $125,000 shall be available, at the discretion of the Chairperson, to pay up to 100 per centum of such cost of projects and productions if such projects and productions would otherwise be unavailable to the residents of that State: Provided, That the total amount of any such allotment for any fiscal year which is exempted from such 50 per centum limitation shall not exceed 20 per centum of the total of such allotment for such fiscal year.
(B) Any amount allotted to a State under the first sentence of paragraph (3) for any fiscal year which is not obligated by the State prior to 60 days prior to the end of the fiscal year for which such sums are appropriated shall be available for making grants to regional groups.
(C) Funds made available under this subsection shall not be used to supplant non-Federal funds.
(D) For the purpose of paragraph (3) and paragraph (4) of this section the term “regional group” means any multistate group, whether or not representative of contiguous States.
(E) For purposes of paragraph (3)(B), the term “State” includes, in addition to the several States of the Union, only those special jurisdictions specified in section 952(g) of this title which have a population of 200,000 or more, according to the latest decennial census.
(5) All amounts allotted or made available under paragraph (3) for a fiscal year which are not granted to a State during such year shall be available at the end of such year to the National Endowment for the Arts for the purpose of carrying out subsection (c) of this section.
Whenever the Chairperson, after reasonable notice and opportunity for hearing, finds that—
(1) a group is not complying substantially with the provisions of this section;
(2) a State agency is not complying substantially with the terms and conditions of its State plan approved under this section; or
(3) any funds granted to a group or State agency under this section have been diverted from the purposes for which they were allotted or paid,
the Chairperson shall immediately notify the Secretary of the Treasury and the group or State agency with respect to which such finding was made that no further grants will be made under this section to such group or agency until there is no longer any default or failure to comply or the diversion has been corrected, or, if compliance or correction is impossible, until such group or agency repays or arranges the repayment of the Federal funds which have been improperly diverted or expended.
It shall be a condition of the receipt of financial assistance provided under this section by the Chairperson or the State agency that the applicant for such assistance include in its application—
(1) a detailed description of the proposed project, production, workshop, or program for which the applicant requests such assistance;
(2) a timetable for the completion of such proposed project, production, workshop, or program;
(3) an assurance that the applicant will submit—
(A) interim reports describing the applicant's—
(i) progress in carrying out such project, production, workshop, or program; and
(ii) compliance with this subchapter and the conditions of receipt of such assistance;
(B) if such proposed project, production, workshop, or program will be carried out during a period exceeding 1 year, an annual report describing the applicant's—
(i) progress in carrying out such project, production, workshop, or program; and
(ii) compliance with this subchapter and the conditions of receipt of such assistance; and
(C) not later than 90 days after—
(i) the end of the period for which the applicant receives such assistance; or
(ii) the completion of such project, production, workshop, or program;
whichever occurs earlier, a final report to the Chairperson or the State agency (as the case may be) describing the applicant's compliance with this subchapter and the conditions of receipt of such assistance; and
(4) an assurance that the project, production, workshop, or program for which assistance is requested will meet the standards of artistic excellence and artistic merit required by this subchapter.
The Chairperson shall issue regulations to provide for the distribution of financial assistance to recipients in installments except in those cases where the Chairperson determines that installments are not practicable. In implementing any such installments, the Chairperson shall ensure that—
(1) not more than two-thirds of such assistance may be provided at the time such application is approved; and
(2) the remainder of such assistance may not be provided until the Chairperson finds that the recipient of such assistance is complying substantially with this section and with the conditions under which such assistance is provided to such recipient.
The Inspector General of the Endowment shall conduct appropriate reviews to ensure that recipients of financial assistance under this section comply with the regulations under this subchapter that apply with respect to such assistance, including regulations relating to accounting and financial matters.
(1) If, after reasonable notice and opportunity for a hearing on the record, the Chairperson determines that a recipient of financial assistance provided under this section by the Chairperson or any non-Federal entity, used such financial assistance for a project, production, workshop, or program that is determined to be obscene, then the Chairperson shall require that until such recipient repays such assistance (in such amount, and under such terms and conditions, as the Chairperson determines to be appropriate) to the Endowment; no subsequent financial assistance be provided under this section to such recipient.
(2) Financial assistance repaid under this section to the Endowment shall be deposited in the Treasury of the United States and credited as miscellaneous receipts.
(3)(A) This subsection shall not apply with respect to financial assistance provided before the effective date of this subsection.
(B) This subsection shall not apply with respect to a project, production, workshop, or program after the expiration of the 7-year period beginning on the latest date on which financial assistance is provided under this section for such project, production, workshop, or program.
It shall be a condition of the receipt of any grant under this section that the group or individual of exceptional talent or the State or State agency receiving such grant furnish adequate assurances to the Secretary of Labor that (1) all professional performers and related or supporting professional personnel (other than laborers and mechanics with respect to whom labor standards are prescribed in subsection (n) of this section) employed on projects or productions which are financed in whole or in part under this section will be paid, without subsequent deduction or rebate on any account, not less than the minimum compensation as determined by the Secretary of Labor to be the prevailing minimum compensation for persons employed in similar activities; and (2) no part of any project or production which is financed in whole or in part under this section will be performed or engaged in under working conditions which are unsanitary or hazardous or dangerous to the health and safety of the employees engaged in such project or production. Compliance with the safety and sanitary laws of the State in which the performance or part thereof is to take place shall be prima facie evidence of compliance. The Secretary of Labor shall have the authority to prescribe standards, regulations, and procedures as the Secretary of Labor may deem necessary or appropriate to carry out the provisions of this subsection.
It shall be a condition of the receipt of any grant under this section that the group or individual of exceptional talent or the State or State agency receiving such grant furnish adequate assurances to the Secretary of Labor that all laborers and mechanics employed by contractors or subcontractors on construction projects assisted under this section shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with sections 3141–3144, 3146, and 3147 of title 40. The Secretary of Labor shall have with respect to the labor standards specified in this subsection the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 and section 3145 of title 40.
The Chairperson shall correlate the programs of the National Endowment for the Arts insofar as practicable, with existing Federal programs and with those undertaken by other public agencies or private groups, and shall develop the programs of the Endowment with due regard to the contribution to the objectives of this subchapter which can be made by other Federal agencies under existing programs. The Chairperson may enter into interagency agreements to promote or assist with the arts-related activities of other Federal agencies, on a reimbursable or nonreimbursable basis, and may use funds authorized to be appropriated for the purposes of subsection (c) of this section for the costs of such activities.
(1) The Chairperson of the National Endowment for the Arts, with the advice of the National Council on the Arts, is authorized, in accordance with the provisions of this subsection, to establish and carry out a program of contracts with, or grants-in-aid to, public agencies and private nonprofit organizations, on a national, State, or local level, for the purpose of strengthening quality by—
(A) enabling cultural organizations and institutions to increase the levels of continuing support and to increase the range of contributors to the programs of such organizations or institutions;
(B) providing administrative and management improvements for cultural organizations and institutions, particularly in the field of long-range financial planning;
(C) enabling cultural organizations and institutions to increase audience participation in, and appreciation of, programs sponsored by such organizations and institutions;
(D) providing additional support for cooperative efforts undertaken by State arts agencies with local arts groups and local arts agencies to promote effective arts activity at the State and local level, including—
(i) support of professional artists in community based residencies;
(ii) support of rural arts development;
(iii) support of and models for regional, statewide, or local organizations to provide technical assistance to cultural organizations and institutions;
(iv) support of and models for visual and performing arts touring; and
(v) support of and models for professional staffing of arts organizations and for stabilizing and broadening the financial base for arts organizations;
(E) stimulating greater cooperation among cultural organizations and institutions especially designed to serve better the communities in which such organizations or institutions are located;
(F) fostering greater citizen involvement in planning the cultural development of a community; and
(G) stimulating artistic activity and awareness which are in keeping with the varied cultural traditions of this Nation.
(2)(A) The Chairperson of the National Endowment for the Arts, with the advice of the National Council on the Arts, is authorized in accordance with this subsection, to establish and carry out a program of contracts with, or grants to, States for the purposes of—
(i) raising the artistic capabilities of developing arts organizations by providing for—
(I) artistic and programmatic development to enhance artistic capabilities, including staff development; and
(II) technical assistance to improve managerial and organizational skills, financial systems management, and long-range fiscal planning; and
(ii) stimulating artistic activity and awareness and broadening public access to the arts in rural and innercity areas and other areas that are underserved artistically.
(B) For purposes of providing financial assistance under this paragraph, the Chairperson shall give priority to the activities described in subparagraph (A)(i).
(C) The Chairperson may not provide financial assistance under this paragraph to a particular applicant in more than 3 fiscal years for the purpose specified in subparagraph (A)(i).
(3) The total amount of any payment made under this subsection for a program or project may not exceed 50 per centum of the cost of such program or project.
(4) In carrying out the program authorized by this subsection, the Chairperson of the National Endowment for the Arts shall have the same authority as is established in subsection (c) of this section and section 959 of this title.
The Chairperson of the National Endowment for the Arts shall, in ongoing consultation with State and local agencies, relevant organizations, and relevant Federal agencies, continue to develop and implement a practical system of national information and data collection and public dissemination on the arts, artists and arts groups, and their audiences. Such system shall include artistic and financial trends in the various artistic fields, trends in audience participation, and trends in arts education on national, regional, and State levels. Such system shall also include information regarding the availability of the arts to various audience segments, including rural communities. Such system shall be used, along with a summary of the data submitted with State plans under subsection (g) of this section, to prepare a periodic report on the state of the arts in the Nation. The state of the arts report shall include a description of the availability of the Endowment's programs to emerging, rural, and culturally diverse artists, arts organizations, and communities and of the participation by such artists, organizations, and communities in such programs. The state of the arts report shall be submitted to the President and the Congress, and provided to the States, not later than October 1, 1992, and quadrennially thereafter.
(Pub. L. 89–209, §5, Sept. 29, 1965, 79 Stat. 846; Pub. L. 90–83, §10(b), Sept. 11, 1967, 81 Stat. 223; Pub. L. 90–348, §§2, 3, June 18, 1968, 82 Stat. 185; Pub. L. 91–346, §§4, 5(a)(1), (2), 6, 7, July 20, 1970, 84 Stat. 443, 445; Pub. L. 93–133, §2(a)(3), (4), Oct. 19, 1973, 87 Stat. 462; Pub. L. 94–462, title I, §§101, 102, title III, §301(a), title IV, §401(a), Oct. 8, 1976, 90 Stat. 1971, 1978, 1980; Pub. L. 96–496, title I, §§102, 109(a), (b), Dec. 4, 1980, 94 Stat. 2583, 2591; renumbered title I, §5, Pub. L. 98–306, §2, May 31, 1984, 98 Stat. 223; renumbered §5 and amended Pub. L. 99–194, title I, §§101(1), 105, Dec. 20, 1985, 99 Stat. 1332, 1333; Pub. L. 101–512, title III, §318 [title I, §§103(a)–(i)(1), 104], Nov. 5, 1990, 104 Stat. 1960, 1963–1966.)
The effective date of this subsection, referred to in subsec. (l)(3)(A), is October 1, 1990, see section 318 [title IV, §403(a)] of Pub. L. 101–512, set out as an Effective Date of 1990 Amendment note under section 951 of this title.
Reorganization Plan Numbered 14 of 1950, referred to in subsec. (n), is set out in the Appendix to Title 5, Government Organization and Employees.
In subsec. (n), “sections 3141–3144, 3146, and 3147 of title 40” substituted for “the Davis-Bacon Act, as amended (40 U.S.C. 276a—276a–5)” and “section 3145 of title 40” substituted for “section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c)” on authority of Pub. L. 107–217, §5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted Title 40, Public Buildings, Property, and Works.
1990—Subsec. (c). Pub. L. 101–512, §318 [title I, §103(a)(7)], substituted “paragraph (10)” for “clause (8)” in concluding provisions.
Subsec. (c)(1). Pub. L. 101–512, §318 [title I, §103(a)(1)], amended par. (1) generally. Prior to amendment, par. (1) read as follows: “projects and productions which have substantial artistic and cultural significance, giving emphasis to American creativity and cultural diversity and the maintenance and encouragement of professional excellence;”.
Subsec. (c)(2). Pub. L. 101–512, §318 [title I, §103(a)(2)], inserted “or tradition” after “authenticity”.
Subsec. (c)(5). Pub. L. 101–512, §318 [title I, §103(a)(3)], inserted “education,” after “knowledge,”.
Subsec. (c)(8) to (10). Pub. L. 101–512, §318 [title I, §103(a)(4)–(6)], added pars. (8) and (9) and redesignated former par. (8) as (10).
Subsec. (d). Pub. L. 101–512, §318 [title I, §103(b)], amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “No payment may be made to any group under this section except upon application therefor which is submitted to the National Endowment for the Arts in accordance with regulations and procedures established by the Chairperson.”
Subsec. (f). Pub. L. 101–512, §318 [title I, §103(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. (g)(2)(E)(i), (ii). Pub. L. 101–512, §318 [title I, §103(d)], added cls. (i) and (ii) and struck out former cls. (i) and (ii) which read as follows:
“(i) a description of the level of participation during the previous 2 years by artists, artists’ organizations, and arts organizations in projects and productions for which financial assistance is provided under this subsection;
“(ii) a description of the extent to which projects and productions receiving financial assistance under this subsection are available to all people and communities in the State; and”.
Subsecs. (i) to (k). Pub. L. 101–512, §318 [title I, §103(g)(2)], added subsecs. (i) to (k), and redesignated former subsecs. (i) to (k) as (l) to (n), respectively.
Subsec. (l). Pub. L. 101–512, §318 [title I, §103(h)(2)], added subsec. (l). Former subsec. (l), redesignated (m).
Pub. L. 101–512, §318 [title I, §103(g)(1)], redesignated subsec. (i) as (l). Former subsec. (l) redesignated (o).
Subsec. (m). Pub. L. 101–512, §318 [title I, §103(i)(1)], substituted “subsection (n)” for “subsection (j)”.
Pub. L. 101–512, §318 [title I, §103(h)(1)], redesignated subsec. (l) as (m). Former subsec. (m) redesignated (n).
Pub. L. 101–512, §318 [title I, §103(g)(1)], redesignated subsec. (j) as (m). Former subsec. (m) redesignated (p).
Subsecs. (n), (o). Pub. L. 101–512, §318 [title I, §103(h)(1)], redesignated subsecs. (m) and (n) as (n) and (o), respectively. Former subsecs. (n) and (o) redesignated (o) and (p), respectively.
Pub. L. 101–512, §318 [title I, §103(g)(1)], redesignated subsecs. (k) and (l) as (n) and (o), respectively.
Subsec. (p). Pub. L. 101–512, §318 [title I, §103(h)(1)], redesignated subsec. (o) as (p). Former subsec. (p) redesignated (q).
Pub. L. 101–512, §318 [title I, §103(g)(1)], redesignated subsec. (m) as (p).
Subsec. (p)(1)(G). Pub. L. 101–512, §318 [title I, §103(e)], added subpar. (G).
Subsec. (p)(2) to (4). Pub. L. 101–512, §318 [title I, §104], added par. (2), redesignated former pars. (2) and (3) as (3) and (4), respectively, and in par. (4), substituted “subsection (c)” for “section 5(c)”, which for purposes of codification was translated as “subsection (c) of this section” thus requiring no change in text.
Subsec. (q). Pub. L. 101–512, §318 [title I, §103(h)(1)], redesignated subsec. (p) as (q).
Pub. L. 101–512, §318 [title I, §103(f)], inserted “ongoing” after “shall, in”, substituted “continue to develop and implement” for “develop”, inserted “and public dissemination” after “collection”, struck out “Not later than one year after December 20, 1985, the Chairperson shall submit to the Committee on Education and Labor of the House of Representatives and the Committee on Labor and Human Resources of the Senate a plan for the development and implementation of such system, including a recommendation regarding the need for any additional funds to be appropriated to develop and implement such system.” after “including rural communities.”, and substituted “1992, and quadrennially” for “1988, and biennially”.
1985—Subsec. (b)(1). Pub. L. 99–194, §105(1), (6), substituted “chairperson” for “chairman” and “Chairperson” for “Chairman”.
Subsec. (b)(2). Pub. L. 99–194, §105(6), (7), substituted “Chairperson” for “Chairman” wherever appearing and “the Chairperson's” for “his” in two places.
Subsec. (c). Pub. L. 99–194, §105(2)(C), (D), (6), substituted “Chairperson” for “Chairman” in provisions preceding par. (1), and in provisions following cl. (8) substituted “Chairperson” for “Chairman” wherever appearing and “clause (8)” for “clause (5)”, and inserted “In selecting individuals and groups of exceptional talent as recipients of financial assistance to be provided under this subsection, the Chairperson shall give particular regard to artists and artistic groups that have traditionally been underrepresented”.
Subsec. (c)(4) to (8). Pub. L. 99–194, §105(2)(A), (B), added cls. (4) and (5) and redesignated former cls. (4) to (6) as (6) to (8), respectively.
Subsec. (d). Pub. L. 99–194, §105(6), substituted “Chairperson” for “Chairman”.
Subsec. (g). Pub. L. 99–194, §105(3), (6), substituted “Chairperson” for “Chairman” wherever appearing, and in par. (2) struck out “and” at end of cl. (B), substituted “, including a description of the progress made toward achieving the goals of the State plan;” for the period at end of cl. (C), and added cls. (D) and (E).
Subsec. (h). Pub. L. 99–194, §105(6), substituted “Chairperson” for “Chairman” wherever appearing.
Subsec. (i). Pub. L. 99–194, §105(4), substituted “Secretary of Labor may deem” for “he may deem” in last sentence.
Subsec. (k). Pub. L. 99–194, §105(6), substituted “Chairperson” for “Chairman” wherever appearing.
Subsec. (l)(1). Pub. L. 99–194, §105(6), substituted “Chairperson” for “Chairman” in provisions preceding subpar. (A).
Subsec. (l)(1)(D). Pub. L. 99–194, §105(5), inserted “and local arts agencies” after “local arts groups”, designated existing provisions as cl. (i), and added cls. (ii) to (v).
Subsec. (l)(3). Pub. L. 99–194, §105(6), substituted “Chairperson” for “Chairman”.
Subsec. (m). Pub. L. 99–194, §105(8), added subsec. (m).
1980—Subsec. (c). Pub. L. 96–496, §§102(a), 109(a), inserted “or loans” in provisions preceding cl. (1) and “and cultural diversity” in cl. (1), redesignated cl. (5) as (6), added cl. (5), substituted “Committee on Labor and Human Resources” for “Committee on Labor and Public Welfare” in provisions following cl. (6), and provided that any loans made by the Chairman under subsec. (c) were to be made in accordance with terms and conditions approved by the Secretary of the Treasury.
Subsec. (g)(2)(A). Pub. L. 96–496, §102(b)(1), struck out provision that the Recreation Board, or any successor designated for purposes of this subchapter by the Commissioner of the District of Columbia, was to be considered the “State agency” within the District of Columbia.
Subsec. (g)(4)(A). Pub. L. 96–496, §109(b), substituted “such projects” for “such project”.
Subsec. (g)(4)(E). Pub. L. 96–496, §102(b)(2), added subpar. (E).
Subsec. (k). Pub. L. 96–496, §102(c), authorized the Chairman to enter into interagency agreements to promote or assist the arts-related activities of other Federal agencies, on a reimbursable or nonreimbursable basis, and to use funds authorized to be appropriated for the purposes of subsec. (c) of this section for the costs of such activities.
Subsec. (l). Pub. L. 96–496, §102(d), inserted “, on a national, State, or local level,” and “strengthening quality by” in provisions of par. (1) preceding subpar. (A), redesignated subpars. (D) and (E) as (E) and (F), respectively, and added subpar. (D).
Subsec. (m). Pub. L. 96–496, §102(e), struck out subsec. (m) which related to grants or contracts to State arts agencies for photography and film projects.
1976—Subsec. (c). Pub. L. 94–462, §101, struck out in provisions preceding par. (1) “in the United States” after “provide or support”.
Subsec. (g)(4)(A). Pub. L. 94–462, §102, inserted provision that amount of each allotment to a State for any fiscal year shall be available to each State which has a plan approved by the Chairman to pay not more than 50 percent of total cost of any project or production described in subsec. (g)(1).
Subsec. (l). Pub. L. 94–462, §301(a), added subsec. (l).
Subsec. (m). Pub. L. 94–462, §401(a), added subsec. (m).
1973—Subsec. (c). Pub. L. 93–133, §3, in opening paragraph, struck out reference to Federal Council on the Arts and Humanities, in cl. (1), substituted “projects and productions” for “production”, in cl. (2), substituted “projects and productions” and “for geographic or economic reasons” for “production” and “in many areas of the country” respectively, in cl. (3), substituted “projects and productions” for “projects”, in cl. (5), substituted “, planning, and publications relating to the purposes of this subsection” for “and planning in the arts”, and added paragraph following cl. (5).
Subsec. (g)(1). Pub. L. 93–133, §2(a)(4)(A), struck out reference to Federal Council on the Arts and Humanities.
Subsec. (g)(2). Pub. L. 93–133, §2(a)(4)(B), (C), in provisions preceding cl. (A), substituted “assistance under this subsection” and “at such time as shall be specified by the Chairman” for “such assistance” and “prior to the first day of such fiscal year” respectively, and in cl. (B), struck out exception that in the first fiscal year in which the state was allotted funds after Sept. 29, 1965, the plan may provide that amount not exceeding $25,000 will be expended to conduct a study to plan the development and the establishment of a State agency.
Subsec. (g)(3). Pub. L. 93–133, §2(a)(4)(D), added par. (3) and struck out former par. (3) which read as follows: “From the sums appropriated to carry out the purposes of this subsection for any fiscal year, not less than $65,000 shall be allotted to each State. That part of such sums as may remain after such allotment shall be allotted among the States in equal amounts, except that for the purposes of this sentence the term ‘State’ shall not include Guam and American Samoa. If the sums appropriated for any fiscal year to carry out the purposes of this subsection are insufficient to satisfy allotments under the first sentence of this paragraph, such sums shall be allotted among the States in equal amounts.”
Subsec. (g)(4). Pub. L. 93–133, §2(a)(4)(D), added par. (4) and struck out former par. (4) which read as follows: “The amount of each allotment to a State for any fiscal year under this subsection shall be available to each State, which has a plan approved by the Chairman in effect on the first day of such fiscal year, to pay not more than 50 per centum of the total cost of any project or production described in paragraph (1), and to pay up to 100 per centum of the cost of conducting a study and establishing a State agency under paragraph (2)(B) of this subsection.”
Subsec. (g)(5). Pub. L. 93–133, §2(a)(4)(E), substituted “All amounts allotted or made available” for “All amounts allotted”.
1970—Subsec. (b). Pub. L. 91–346, §5(a)(1), designated existing provisions as cl. (1), and, in cl. (1) as so designated, provided for appointment of the Chairman of the National Endowment for the Arts by the President with the advice and consent of the Senate, and added cl. (2).
Subsec. (c)(3). Pub. L. 91–346, §4, expanded grants-in-aid program to enable talented groups or individuals to achieve wider distribution of their works and to work in residence at an educational or cultural institution.
Subsecs. (d) to (l). Pub. L. 91–346, §5(a)(2), struck out subsec. (d) which provided for the individual appointed as Chairman of the National Council on the Arts to also serve as the Chairman of the National Endowment for the Arts, and redesignated subsecs. (e) to (l), and all references thereto, as subsecs. (d) to (k), respectively.
Subsec. (g)(2)(A). Pub. L. 91–346, §6, permitted the Commissioner of the District of Columbia to designate a successor to the Recreation Board for the purpose of this chapter.
Subsec. (g)(3). Pub. L. 91–346, §7, provided minimum of $65,000 allotment to each State from sums appropriated for this subsec., authorized remaining funds to be equally allotted among the States, excluded Guam and American Samoa from term “State”, and provided for equal allotments to States if the sums appropriated are insufficient to satisfy the minimum allotment.
1968—Subsec. (c). Pub. L. 90–348, §2(a), authorized contracts with groups, or in appropriate cases, individuals engaged in the arts, for the purpose of enabling them to provide or support programs and productions in the arts.
Subsec. (f). Pub. L. 90–348, §2(a), provided that contracts as well as grants made by the National Endowment for the Arts be subject to the amount limitation, and eliminated the provision requiring that groups seeking funds from the National Endowment for the Arts submit evidence to the Endowment that it had attempted unsuccessfully to secure an amount of funds equal to the grant applied for by such group, together with a statement of the proportion which any funds it had secured represent the funds applied for by such group.
Subsec. (h)(3). Pub. L. 90–348, §3, substituted “Funds appropriated to carry out the purpose of this subsection” for “The funds appropriated pursuant to section 960(c) of this title”.
Subsec. (h)(5). Pub. L. 90–348, §3, struck out provision that amounts available to the National Endowment for the Arts at the end of the fiscal year shall be limited to the excess of the value of gifts, bequests, and devises received by the Endowment over the amounts appropriated to the Endowment, the appropriated amounts to be equal to the amounts received by the Endowment in the form of donations, bequests, and devises, but not to exceed $2,250,000.
Subsecs. (j), (k). Pub. L. 90–348, §2(b), inserted “of exceptional talent” after “the group or individual”.
1967—Subsec. (d). Pub. L. 90–83 struck out provisions setting the compensation for the Chairman of the National Council on the Arts and the National Endowment for the Arts.
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 changed to Committee on Education and the Workforce of House of Representatives by House Resolution No. 5, One Hundred Twelfth Congress, Jan. 5, 2011.
Amendment by Pub. L. 101–512 effective Oct. 1, 1990, see section 318 [title IV, §403(a)] of Pub. L. 101–512, set out as a note under section 951 of this title.
Section 112 of Pub. L. 99–194 provided that: “The amendments made by sections 105(3) and 107(3) [amending this section and section 956 of this title] shall not apply with respect to plans submitted for financial assistance to be provided with funds appropriated for fiscal year 1986.”
Amendment by Pub. L. 93–133 effective on and after July 1, 1973, see section 2(b) of Pub. L. 93–133, set out as a note under section 951 of this title.
Amendment by section 5(a)(1), (2) of Pub. L. 91–346 effective after June 30, 1970, see section 5(d)(3)(A) of Pub. L. 91–346, set out as a note under section 955 of this title.
For termination, effective May 15, 2000, of provisions in subsec. (q) of this section relating to quadrennially submitting the state of the arts report 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 page 183 of House Document No. 103–7.
Section 318 [title I, §111] of Pub. L. 101–512 provided that:
“(a)
“(1) to evaluate the roles and responsibilities of the National Endowment for the Arts, the States (including State agencies), and local arts agencies, in providing financial assistance under section 5 of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954),
“(2) the relative effectiveness of the Endowment, the States (including State agencies), and local arts agencies in maximizing the amount of financial assistance they make available under such section, and
“(3) the existing capacity of the States to receive increased allocations under section 5 of such Act and the ability of the States to manage such increased allocations effectively.
“(b)
Pub. L. 101–121, title III, §304(a)–(c), Oct. 23, 1989, 103 Stat. 741, 742, prohibited use of funds for National Endowment for the Arts or National Endowment for the Humanities to promote, disseminate, or produce materials which in judgment of National Endowment for the Arts or National Endowment for the Humanities may be considered obscene; stated the sense of Congress concerning present procedures employed for awarding National Endowment for the Arts grants; and established Independent Commission, to expire Sept. 30, 1990, for purpose of reviewing National Endowment for the Arts grant making procedures, and considering whether standard for publicly funded art should be different than standard for privately funded art.
The purposes of this section are—
(1) to increase accessibility to the arts through providing education to all Americans, including diverse cultures, urban and rural populations by encouraging and developing quality education in the arts at all levels, in conjunction with programs of nonformal education for all age groups, with formal systems of elementary, secondary, and postsecondary education;
(2) to develop and stimulate research to teach quality education in the arts; and
(3) to encourage and facilitate the work of artists, arts institutions, and Federal, State, regional, and local agencies in the area of education in the arts.
The Chairperson of the National Endowment for the Arts,1 is authorized to establish and carry out a program of contracts with, or grants to, any State or other public agency, individual, artist, any nonprofit society, performing and nonperforming arts and educational institution or organization, association, or museum in the United States, in order to foster and encourage exceptional talent, public knowledge, understanding, and appreciation of the arts, and to support the education, training, and development of this Nation's artists, through such activities as projects that will—
(1) promote and improve the availability of arts instruction for American youth and life-long learning in the arts;
(2) enhance the quality of arts instruction in programs of teacher education;
(3) develop arts faculty resources and talents;
(4) support and encourage the development of improved curriculum materials in the arts;
(5) improve evaluation and assessment of education in the arts programs and instruction;
(6) foster cooperative programs with the Department of Education and encourage partnerships between arts and education agencies at State and local levels, arts organizations, business colleges and universities;
(7) support apprenticeships, internships, and other career oriented work-study experiences for artists and arts teachers, and encourage residencies of artists at all educational levels;
(8) support the use of technology and improved facilities and resources in education in the arts programs at all levels; and
(9) foster the development of demonstration projects, demonstration productions, demonstration workshops, and demonstration programs in arts education and collect, and make available to the public, information on their implementation and effectiveness.
In order to provide advice and counsel concerning arts education, the Chairperson shall appoint an advisory council on arts education.
(Pub. L. 89–209, §5A, as added Pub. L. 101–512, title III, §318 [title I, §105], Nov. 5, 1990, 104 Stat. 1960, 1967.)
Section effective Oct. 1, 1990, see section 318 [title IV, §403(a)] of Pub. L. 101–512, set out as an Effective Date of 1990 Amendment note under section 951 of this title.
1 So in original. The comma probably should not appear.
There shall be, within the National Endowment for the Arts, a National Council on the Arts (hereinafter in this section referred to as the “Council”).
(1) The Council shall be composed of members as follows:
(A) The Chairperson of the National Endowment for the Arts, who shall be the chairperson of the Council.
(B) Members of Congress appointed for a 2-year term beginning on January 1 of each odd-numbered year as follows:
(i) Two Members of the House of Representatives appointed by the Speaker of the House of Representatives.
(ii) One Member of the House of Representatives appointed by the Minority Leader of the House of Representatives.
(iii) Two Senator 1 appointed by the Majority Leader of the Senate.
(iv) One Senator appointed by the Minority Leader of the Senate.
Members of the Council appointed under this subparagraph shall serve ex officio and shall be nonvoting members of the Council.
(C) 18 members appointed by the President, by and with the advice and consent of the Senate, who shall be selected—
(i) from among private citizens of the United States who—
(I) are widely recognized for their broad knowledge of, or expertise in, or for their profound interest in the arts; and
(II) have established records of distinguished service, or achieved eminence, in the arts;
(ii) so as to include practicing artists, civic cultural leaders, members of the museum profession, and others who are professionally engaged in the arts; and
(iii) so as collectively to provide an appropriate distribution of membership among major art fields and interested citizens groups.
In making such appointments, the President shall give due regard to equitable representation of women, minorities, and individuals with disabilities who are involved in the arts and shall make such appointments so as to represent equitably all geographical areas in the United States.
(2)
(A) Notwithstanding subsection (b)(1)(B) of this section, members first appointed pursuant to such subsection shall be appointed not later than December 31, 1997. Notwithstanding such subsection, such members shall be appointed to serve until December 31, 1998.
(B) Members of the Council serving on the effective date of this subsection may continue to serve on the Council until their current terms expire and new members shall not be appointed under subsection (b)(1)(C) of this section until the number of Presidentially appointed members is less than 14.
Each member appointed under subsection (b)(1)(C) of this section shall hold office for a term of six years, and the terms of office shall be staggered. The terms of office of all Council members appointed under subsection (b)(1)(C) of this section shall expire on the third day of September in the year of expiration. No member appointed under subsection (b)(1)(C) of this section shall be eligible for reappointment during the two-year period following the expiration of such member's term. Any member appointed under subsection (b)(1)(C) of this section appointed 2 to fill a vacancy shall serve for the remainder of the term for which such member's predecessor was appointed. Notwithstanding any other provision of this subsection, a member appointed under subsection (b)(1)(C) of this section shall serve after the expiration of such member's term until such member's successor takes office.
(1) The Council shall meet at the call of the Chairperson but not less often than twice during each calendar year. Ten members of the Council shall constitute a quorum. All policy meetings of the Council shall be open to the public.
(2) The Council shall—
(A) create written records summarizing—
(i) all meetings and discussions of the Council; and
(ii) the recommendations made by the Council to the Chairperson; and
(B) make such records available to the public in a manner that protects the privacy of individual applicants, panel members, and Council members.
Members shall receive compensation at a rate to be fixed by the Chairperson but not to exceed the per diem equivalent of the rate authorized for grade GS–18 by section 5332 of title 5 and be allowed travel expenses including per diem in lieu of subsistence, as authorized by law (section 5703 of title 5) for persons in the Government service employed intermittently.
The Council shall advise the Chairperson with respect to policies, programs, and procedures for carrying out the Chairperson's functions, duties, or responsibilities under this subchapter, and review applications for financial assistance under this subchapter and make recommendations to the Chairperson with respect to the approval of each application and the amount of financial assistance (if any) to provide to each applicant. The Council shall make recommendations to the Chairperson concerning—
(1) whether to approve particular applications for financial assistance under subsections (c) and (p) of section 954 of this title that are determined by panels under section 959(c) of this title to have artistic excellence and artistic merit; and
(2) the amount of financial assistance the Chairperson should provide with respect to each such application the Council recommends for approval.
The Chairperson shall not approve or disapprove any such application until the Chairperson has received the recommendation of the Council on such application. The Chairperson shall have final authority to approve each application, except that the Chairperson may only provide to an applicant the amount of financial assistance recommended by the Council and may not approve an application with respect to which the Council makes a negative recommendation. In the case of an application involving $30,000, or less, the Chairperson may approve or disapprove such request if such action is taken pursuant to the terms of an expressed and direct delegation of authority from the Council to the Chairperson, and provided that each such action by the Chairperson shall be reviewed by the Council, and that such action shall be used with discretion and shall not become a normal practice of providing assistance under such subsections, except that the terms of any such delegation of authority shall not permit obligations for expenditure of funds under such delegation for any fiscal year which exceed an amount equal to 10 per centum of the sums appropriated for that fiscal year pursuant to subparagraph (A) of paragraph (1) of section 960(a) of this title.
(Pub. L. 89–209, §6, Sept. 29, 1965, 79 Stat. 849; Pub. L. 90–348, §4, June 18, 1968, 82 Stat. 185; Pub. L. 91–346, §5(b), July 20, 1970, 84 Stat. 444; Pub. L. 93–133, §2(a)(5), Oct. 19, 1973, 87 Stat. 463; Pub. L. 94–462, title I, §103(a), Oct. 8, 1976, 90 Stat. 1971; Pub. L. 96–496, title I, §103, Dec. 4, 1980, 94 Stat. 2584; renumbered title I, §6, and amended Pub. L. 98–306, §§2, 5(a), May 31, 1984, 98 Stat. 223, 224; renumbered §6 and amended Pub. L. 99–194, title I, §§101(1), 106, Dec. 20, 1985, 99 Stat. 1332, 1335; Pub. L. 101–512, title III, §318 [title I, §106], Nov. 5, 1990, 104 Stat. 1960, 1968; Pub. L. 105–83, title III, §346(e), (f), Nov. 14, 1997, 111 Stat. 1605, 1606; Pub. L. 105–119, title VI, §624, Nov. 26, 1997, 111 Stat. 2522; Pub. L. 105–277, div. A, §101(e) [title III, §330], Oct. 21, 1998, 112 Stat. 2681–231, 2681–293; Pub. L. 111–88, div. A, title IV, §417, Oct. 30, 2009, 123 Stat. 2959.)
The effective date of this subsection, referred to in subsec. (b)(2)(B), probably means Nov. 14, 1997, the date of enactment of Pub. L. 105–83 which amended subsec. (b) of this section generally.
2009—Subsec. (b)(1)(C). Pub. L. 111–88, §417(1), substituted “18” for “14” in introductory provisions.
Subsec. (d)(1). Pub. L. 111–88, §417(2), substituted “Ten” for “Eight” in second sentence.
1998—Subsec. (b)(1)(B)(iii). Pub. L. 105–277 substituted “Two” for “One”.
1997—Subsec. (b). Pub. L. 105–83, §346(e), inserted heading and amended text of subsec. (b) generally. Prior to amendment, text read as follows: “The Council shall be composed of the Chairperson of the National Endowment for the Arts, who shall be Chairperson of the Council, and twenty-six other members appointed by the President, by and with the advice and consent of the Senate, who shall be selected—
“(1) from among private citizens of the United States who (A) are widely recognized for their broad knowledge of, or expertise in, or for their profound interest in, the arts and (B) have established records of distinguished service, or achieved eminence, in the arts;
“(2) so as to include practicing artists, civic cultural leaders, members of the museum profession, and others who are professionally engaged in the arts; and
“(3) so as collectively to provide an appropriate distribution of membership among the major art fields.
The President is requested, in the making of such appointments, to give consideration to such recommendations as may, from time to time, be submitted to the President by leading national organizations in these fields. In making such appointments, the President shall give due regard to equitable representation of women, minorities, and individuals with disabilities who are involved in the arts. Members of the Council shall be appointed so as to represent equitably all geographical areas in the United States.”
Subsec. (c). Pub. L. 105–83, §346(f), inserted “appointed under subsection (b)(1)(C) of this section” after “member” wherever appearing and after “all Council members” in second sentence.
Subsec. (d)(1). Pub. L. 105–119, which directed the substitution of “eight” for “fourteen”, was executed by substituting “Eight” for “Fourteen” to reflect the probable intent of Congress.
1990—Subsec. (b). Pub. L. 101–512, §318 [title I, §106(a)], inserted at end “Members of the Council shall be appointed so as to represent equitably all geographical areas in the United States.”
Subsec. (d). Pub. L. 101–512, §318 [title I, §106(b)], designated existing text as par. (1), inserted at end “All policy meetings of the Council shall be open to the public.”, and added par. (2).
Subsec. (f). Pub. L. 101–512, §318 [title I, §106(c)], struck out “(1)” and “(2)” before “advise the Chairperson” and “review applications for”, respectively, struck out “thereon” before “to the Chairperson”, inserted before period at end of first sentence “with respect to the approval of each application and the amount of financial assistance (if any) to provide to each applicant”, struck out “, unless the Council fails to make a recommendation thereon within a reasonable time” after “on such application”, substituted “an expressed and direct delegation” for “a delegation” and “, and that such action shall be used with discretion and shall not become a normal practice of providing assistance under such subsections, except that” for “; Provided, That”, inserted “The Chairperson shall have final authority to approve each application, except that the Chairperson may only provide to an applicant the amount of financial assistance recommended by the Council and may not approve an application with respect to which the Council makes a negative recommendation.”, and inserted “The Council shall make recommendations to the Chairperson concerning—” and added pars. (1) and (2) immediately thereafter.
1985—Subsec. (b). Pub. L. 99–194, §106(1), substituted “Chairperson” for “Chairman” in two places in provisions preceding par. (1), in par. (1) designated existing provisions following “who” as cl. (A) and added cl. (B), and in provisions following par. (3) substituted “the President” for “him” and inserted “In making such appointments, the President shall give due regard to equitable representation of women, minorities, and individuals with disabilities who are involved in the arts.”
Subsec. (c). Pub. L. 99–194, §106(2), substituted “such member's” for “his” wherever appearing.
Subsecs. (d), (e). Pub. L. 99–194, §106(3), (4), substituted “Chairperson” for “Chairman”.
Subsec. (f). Pub. L. 99–194, §106(5), substituted “Chairperson” for “Chairman” wherever appearing, “the Chairperson's” for “his”, “until the Chairperson has received” for “until he has received”, and “$30,000” for “$17,500”.
1984—Subsec. (c). Pub. L. 98–306, §5(a), inserted “Notwithstanding any other provision of this subsection, a member shall serve after the expiration of his term until his successor takes office.”
1980—Subsec. (c). Pub. L. 96–496 provided that the terms of office of all Council members were to expire on the third day of September in the year of expiration.
1976—Subsec. (b). Pub. L. 94–462 inserted “, by and with the advice and consent of the Senate,” after “by the President”.
1973—Subsec. (f). Pub. L. 93–133 substituted “$17,500” for “$10,000” and inserted proviso that the terms of delegation of authority shall not permit obligations for expenditure of funds under such delegation for any fiscal year which exceed an amount equal to 10 per centum of the sums appropriated for that fiscal year.
1970—Pub. L. 91–346 generally incorporated into this section the substantive provisions of the National Arts and Cultural Development Act of 1964 except for the independent study authority of the National Council on the Arts under the 1964 Act, provided for the appointment and composition of the Council, prescribed the terms of office for members of the Council, provided that the Council meet at the call of the Chairman at least twice a year, established 14 as the number of members constituting a quorum, set forth provisions governing compensation of persons employed for the Government service on an intermittent basis, and set forth functions and duties of the council essentially similar to the function and duties of the Council as set out in this section prior to this amendment.
1968—Subsec. (b). Pub. L. 90–348 inserted provision which authorized the Chairman, in the case of any application involving $10,000 or less, to approve or disapprove the application if such action is pursuant to the terms of a delegation of authority from the Endowment Council and such action is reviewed by the Endowment Council.
Amendment by Pub. L. 101–512 effective Oct. 1, 1990, see section 318 [title IV, §403(a)] of Pub. L. 101–512, set out as a note under section 951 of this title.
Amendment by Pub. L. 93–133 effective on and after July 1, 1973, see section 2(b) of Pub. L. 93–133, set out as a note under section 951 of this title.
Section 5(d)(3)(A) of Pub. L. 91–346 provided that: “The amendments made by subsections (a) and (b) [amending this section and sections 954, 959, and 960 of this title] shall be effective after June 30, 1970.”
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, §101(c)(1)] of Pub. L. 101–509, set out in a note under section 5376 of Title 5.
Section 5(d)(1) of Pub. L. 91–346 provided that: “The National Council on the Arts established under section 6 of the National Foundation on the Arts and the Humanities Act of 1965 [this section], as amended by subsection (b), shall, for any purpose determined to be necessary by the Chairman of the National Endowment for the Arts, be deemed to be a continuation of the National Council on the Arts established under the National Arts and Cultural Development Act of 1964, Public Law 88–579 [former section 781 et seq. of this title], without interruption.”
Section 5(d)(2) of Pub. L. 91–346 provided that: “Members appointed to the National Council on the Arts pursuant to section 5 of the National Arts and Cultural Development Act of 1964 [section 784 of this title] shall be deemed to have been appointed as members of the National Council on the Arts established under section 6 of the National Foundation on the Arts and the Humanities Act of 1965 [this section], with such terms of office as may be remaining under the prior appointment on the effective date of the amendments made by subsection (b) [July 1, 1970].”
1 So in original. Probably should be “Senators”.
Section, Pub. L. 98–146, title II, Nov. 4, 1983, 97 Stat. 949, which provided that persons serving on National Council on the Arts continue until their successors are qualified for office, was omitted as superseded. See section 955(c) of this title as amended by Pub. L. 98–306. Similar provisions were contained in Pub. L. 97–394, title II, Dec. 30, 1982, 96 Stat. 1994.
There is hereby established a National Medal of Arts, which shall be a medal of such design as is deemed appropriate by the President, on the basis of recommendations submitted by the National Council on the Arts, and which shall be awarded as provided in subsection (b) of this section.
(1) The President shall from time to time award the National Medal of Arts, on the basis of recommendations from the National Council on the Arts, to individuals or groups who in the President's judgment are deserving of special recognition by reason of their outstanding contributions to the excellence, growth, support, and availability of the arts in the United States.
(2) Not more than twelve of such medals may be awarded in any calendar year.
(3) An individual may be awarded the National Medal of Arts only if at the time such award is made such individual—
(A) is a citizen or other national of the United States; or
(B) is an alien lawfully admitted to the United States for permanent residence who (i) has filed an application or petition for naturalization in the manner prescribed by section 1445 of title 8 and (ii) is not permanently ineligible to become a citizen of the United States.
(4) A group may be awarded the National Medal of Arts only if such group is organized or incorporated in the United States.
(5) The presentation of the National Medal of Arts shall be made by the President with such ceremonies as the President may deem proper, including attendance by appropriate Members of Congress.
Funds made available to the National Endowment for the Arts shall be used to carry out this section.
(Pub. L. 98–306, §13, May 31, 1984, 98 Stat. 225.)
Section was enacted as part of the National Foundation on the Arts and the Humanities Act Amendments of 1983, and not as part of the National Foundation on the Arts and the Humanities Act of 1965 which comprises this subchapter.
There is established within the Foundation the National Endowment for the Humanities.
(1) The Endowment shall be headed by a chairperson, who shall be appointed by the President, by and with the advice and consent of the Senate.
(2) The term of office of the Chairperson shall be four years, and the Chairperson shall be eligible for reappointment. The provisions of this paragraph shall apply to any person appointed to fill a vacancy in the office of the Chairperson. Upon expiration of the Chairperson's term of office the Chairperson shall serve until the Chairperson's successor shall have been appointed and shall have qualified.
The Chairperson, with the advice of the National Council on the Humanities (hereinafter established), is authorized to enter into arrangements, including contracts, grants, loans, and other forms of assistance, to—
(1) develop and encourage the pursuit of a national policy for the promotion of progress and scholarship in the humanities;
(2) initiate and support research and programs to strengthen the research and teaching potential of the United States in the humanities by making arrangements with individuals or groups to support such activities; any loans made by the Endowment shall be made in accordance with terms and conditions approved by the Secretary of the Treasury;
(3) initiate and support training and workshops in the humanities by making arrangements with institutions or individuals (fellowships awarded to individuals under this authority may be for the purpose of study or research at appropriate nonprofit institutions selected by the recipient of such aid, for stated periods of time);
(4) initiate and support programs and research which have substantial scholarly and cultural significance and that reach, or reflect the diversity and richness of our American cultural heritage, including the culture of, a minority, inner city, rural, or tribal community;
(5) foster international programs and exchanges;
(6) foster the interchange of information in the humanities;
(7) foster, with groups, education in, and public understanding and appreciation of the humanities;
(8) support the publication of scholarly works in the humanities;
(9) insure that the benefit of its programs will also be available to our citizens where such programs would otherwise be unavailable due to geographic or economic reasons; and
(10) foster programs and projects that provide access to, and preserve materials important to research, education, and public understanding of, the humanities.
In the case of publications under clause (8) of this subsection such publications may be supported without regard for the provisions of section 501 of title 44 only if the Chairperson consults with the Joint Committee on Printing of the Congress and the Chairperson submits to the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives a report justifying any exemption from such section 501. In selecting individuals and groups of exceptional talent as recipients of financial assistance to be provided under this subsection, the Chairperson shall give particular regard to scholars, and educational and cultural institutions, that have traditionally been underrepresented.
The Chairperson shall coordinate the programs of the National Endowment for the Humanities, insofar as practicable, with existing Federal programs, designated State humanities agencies and with those undertaken by other public agencies or private groups, and shall develop the programs of the Endowment with due regard to the contribution to the objectives of this subchapter which can be made by other Federal agencies under existing programs.
The total amount of any grant under subsection (c)(3) of this section to any group engaging in workshop activities for which an admission or other charge is made to the general public shall not exceed 30 per centum of the total cost of such activities.
(1) The Chairperson, with the advice of the National Council on the Humanities, is authorized, in accordance with the provisions of this subsection, to establish and carry out a program of grants-in-aid in each of the several States in order to support not more than 50 per centum of the cost of existing activities which meet the standards enumerated in subsection (c) of this section, and in order to develop a program in the humanities in such a manner as will furnish adequate programs in the humanities in each of the several States.
(2)(A) Whenever a State desires to designate or to provide for the establishment of a State agency as the sole agency for the administration of the State plan, such State shall designate the humanities council in existence on the date the State agency is established as the State agency, and shall match from State funds a sum equal to 50 per centum of that portion of Federal financial assistance received by such State under this subsection which is described in the first sentence of paragraph (4) relating to the minimum State grant, or 25 per centum of the total amount of Federal financial assistance received by such State under this subsection, whichever is greater, for the fiscal year involved. In any State in which the State selects the option described in this subparagraph, the State shall submit, before the beginning of each fiscal year, an application for grants and accompany such application with a plan which the Chairperson finds—
(i) designates or provides for the establishment of a State agency (hereinafter in this section referred to as the “State agency”) as the sole agency for the administration of the State plan;
(ii) provides that the chief executive officer of the State will appoint new members to the State humanities council designated under the provisions of this subparagraph, as vacancies occur as a result of the expiration of the terms of members of such council, until the chief executive officer has appointed all of the members of such council;
(iii) provides, from State funds, an amount equal to 50 per centum of that portion of Federal financial assistance received by such State under this subsection which is described in the first sentence of paragraph (4) relating to the minimum State grant, or 25 per centum of the total amount of Federal financial assistance received by such State under this subsection, whichever is greater, for the fiscal year involved;
(iv) provides that funds paid to the State under this subsection will be expended solely on programs approved by the State agency which carry out the objectives of subsection (c) of this section and which are designed to bring the humanities to the public;
(v) provides assurances that State funds will be newly appropriated for the purpose of meeting the requirements of this subparagraph;
(vi) provides that the State agency will make such reports, in such form and containing such information, as the Chairperson may require, including a description of the progress made toward achieving the goals of the State plan;
(vii) provides—
(I) assurances that the State agency has held, after reasonable notice, public meetings in the State to allow scholars, interested organizations, and the public to present views and make recommendations regarding the State plan; and
(II) a summary of such recommendations and of the response of the State agency to such recommendations; and
(viii) contains—
(I) a description of the level of participation during the most recent preceding year for which information is available by scholars and scholarly organizations in programs receiving financial assistance under this subsection;
(II) for the most recent preceding year for which information is available, a description of the extent to which the programs receiving financial assistance under this subsection are available to all people and communities in the State; and
(III) a description of programs receiving financial assistance under this subsection that exist or are being developed to secure wider participation of scholars and scholarly organizations identified under subclause (I) of this clause or that address the availability of the humanities to all people or communities identified under subclause (II) of this clause.
No application may be approved unless the accompanying plan satisfies the requirements specified in this subsection.
(B) In any State in which the chief executive officer of the State fails to submit an application under subparagraph (A), the grant recipient in such State shall—
(i) establish a procedure which assures that six members of the governing body of such grant recipient shall be appointed by an appropriate officer or agency of such State, except that in no event may the number of such members exceed 25 per centum of the total membership of such governing body; and
(ii) provide, from any source, an amount equal to the amount of Federal financial assistance received by such grant recipient under this subsection for the fiscal year involved.
(3) Whenever a State selects to receive Federal financial assistance under this subsection for any fiscal year under paragraph (2)(B), any appropriate entity desiring to receive such assistance shall submit an application for such assistance at such time as shall be specified by the Chairperson. Each such application shall be accompanied by a plan which the Chairperson finds—
(A) provides assurances that the grant recipient will comply with the requirements of paragraph (2)(B);
(B) provides that funds paid to the grant recipient will be expended solely on programs which carry out the objectives of subsection (c) of this section;
(C) establishes a membership policy which is designed to assure broad public representation with respect to programs administered by such grant recipient;
(D) provides a nomination process which assures opportunities for nomination to membership from various groups within the State involved and from a variety of segments of the population of such State, and including individuals who by reason of their achievement, scholarship, or creativity in the humanities, are especially qualified to serve;
(E) provides for a membership rotation process which assures the regular rotation of the membership and officers of such grant recipient;
(F) establishes reporting procedures which are designed to inform the chief executive officer of the State involved, and other appropriate officers and agencies, of the activities of such grant recipient;
(G) establishes procedures to assure public access to information relating to such activities;
(H) provides that such grant recipient will make reports to the Chairperson, in such form, at such times, and containing such information, as the Chairperson may require, including a description of the progress made toward achieving the goals of the plan;
(I) provides—
(i) assurances that the grant recipient has held, after reasonable notice, public meetings in the State to allow scholars, interested organizations, and the public to present views and make recommendations regarding the plan; and
(ii) a summary of such recommendations and of the response of the grant recipient to such recommendations; and
(J) contains—
(i) a description of the level of participation during the most recent preceding year for which information is available by scholars and scholarly organizations in programs receiving financial assistance under this subsection;
(ii) for the most recent preceding year for which information is available, a description of the extent to which the programs receiving financial assistance under this subsection are available to all people and communities in the State; and
(iii) a description of programs receiving financial assistance under this subsection that exist or are being developed to secure wider participation of scholars and scholarly organizations identified under clause (i) of this subparagraph or that address the availability of the humanities to all people or communities identified under clause (ii) of this subparagraph.
No application may be approved unless the accompanying plan satisfies the requirements specified in this subsection.
(4) Of the sums available to carry out this subsection for any fiscal year, each State and each grant recipient which has a plan approved by the Chairperson shall be allotted at least $200,000. If the sums appropriated are insufficient to make the allotments under the preceding sentence in full, such sums shall be allotted among such States and grant recipients in equal amounts. In any case where the sums available to carry out this subsection for any fiscal year are in excess of the amount required to make the allotments under the first sentence of this paragraph—
(A) 34 per centum of the amount of such excess for such fiscal year shall be available to the Chairperson for making grants under this subsection to States and regional groups and entities applying for such grants;
(B) 44 per centum of the amount of such excess for such fiscal year shall be allotted in equal amounts among the States and grant recipients which have plans approved by the Chairperson; and
(C) 22 per centum of the amount of such excess for such fiscal year shall be allotted among the States and grant recipients which have plans approved by the Chairperson in amounts which bear the same ratio to such excess as the population of the State for which the plan is approved (or, in the case of a grant recipient other than a State, the population of the State in which such grant recipient is located) bears to the population of all the States.
(5)(A) The amount of each allotment to a State for any fiscal year under this subsection shall be available to each State or grant recipient, which has a plan or application approved by the Chairperson in effect on the first day of such fiscal year, to pay not more than 50 per centum of the total cost of any project or production described in paragraph (1). The amount of any allotment made under paragraph (4) for any fiscal year—
(i) which exceeds $125,000, but
(ii) which does not exceed 20 per centum of such allotment,
shall be available, at the discretion of the Chairperson, to pay up to 100 per centum of the cost of programs under this subsection if such programs would otherwise be unavailable to the residents of that State.
(B) Any amount allotted to a State under the first sentence of paragraph (4) for any fiscal year which is not obligated by the State agency or grant recipient prior to sixty days prior to the end of the fiscal year for which such sums are appropriated shall be available to the Chairperson for making grants to regional groups.
(C) Funds made available under this subsection shall not be used to supplant non-Federal funds.
(D) For the purposes of this paragraph, the term “regional group” means any multistate group, whether or not representative of contiguous States.
(E) For purposes of paragraph (4)(B), the term “State” and the term “grant recipient” include, in addition to the several States of the Union, only those special jurisdictions specified in section 952(g) of this title which have a population of 200,000 or more, according to the latest decennial census.
(6) All amounts allotted or made available under paragraph (4) for a fiscal year which are not granted to any entity during such fiscal year shall be available to the National Endowment for the Humanities for the purpose of carrying out subsection (c) of this section.
(7) Whenever the Chairperson, after reasonable notice and opportunity for hearing, finds that—
(A) a group or grant recipient is not complying substantially with the provisions of this subsection;
(B) a State agency or grant recipient is not complying substantially with terms and conditions of its State plan or grant recipient application approved under this subsection; or
(C) any funds granted to any group or State agency or grant recipient under this subsection have been diverted from the purposes for which they are allotted or paid,
the Chairperson shall immediately notify the Secretary of the Treasury and the group, State agency, or grant recipient with respect to which such finding was made that no further grants will be made under this subsection to such group, State agency, or grant recipient until there is no longer a default or failure to comply or the diversion has been corrected, or, if the compliance or correction is impossible, until such group, State agency, or grant recipient repays or arranges the repayment of the Federal funds which have been improperly diverted or expended.
(8) Except as provided in the third sentence of paragraph (4), and paragraphs (5) and (6), the Chairperson may not make grants under this subsection to more than one entity in any State.
It shall be a condition of the receipt of any grant under this section that the group, individual, or State agency or entity receiving such grant furnish adequate assurances to the Secretary of Labor that (1) all professional performers and related or supporting professional personnel employed on projects or productions which are financed in whole or in part under this section will be paid, without subsequent deduction or rebate on any account, not less than the minimum compensation as determined by the Secretary of Labor to be the prevailing minimum compensation for persons employed in similar activities; and (2) no part of any project or production which is financed in whole or in part under this section will be performed or engaged in under working conditions which are unsanitary or hazardous or dangerous to the health and safety of the employees engaged in such project or production. Compliance with the safety and sanitary laws of the State in which the performance or part thereof is to take place shall be prima facie evidence of compliance. The Secretary of Labor shall prescribe standards, regulations, and procedures necessary to carry out this subsection.
(1) The Chairperson of the National Endowment for the Humanities, with the advice of the National Council on the Humanities, is authorized, in accordance with the provisions of this subsection, to establish and carry out a program of contracts with, or grants-in-aid to, public agencies and private nonprofit organizations for the purpose of—
(A) enabling cultural organizations and institutions to increase the levels of continuing support and to increase the range of contributors to the program of such organizations or institutions;
(B) providing administrative and management improvements for cultural organizations and institutions, particularly in the field of long-range financial planning;
(C) enabling cultural organizations and institutions to increase audience participation in, and appreciation of, programs sponsored by such organizations and institutions;
(D) stimulating greater cooperation among cultural organizations and institutions especially designed to serve better the communities in which such organizations or institutions are located;
(E) fostering greater citizen involvement in planning the cultural development of a community; and
(F) for bicentennial programs, assessing where our society and Government stand in relation to the founding principles of the Republic, primarily focused on projects which will bring together the public and private citizen sectors in an effort to find new processes for solving problems facing our Nation in its third century.
(2)(A) Except as provided in subparagraph (B) of this paragraph, the total amount of any payment made under this subsection for a program or project may not exceed 50 per centum of the cost of such program or project.
(B) The Chairperson, with the advice of the Council, may waive all or part of the requirement of matching funds provided in subparagraph (A) of this paragraph, but only for the purposes described in clause (F) of paragraph (1), whenever he determines that highly meritorious proposals for grants and contracts under such clause, could not otherwise be supported from non-Federal sources or from Federal sources other than funds authorized by section 960(a)(3) of this title, unless such matching requirement is waived. Such waiver may not exceed 15 per centum of the amount appropriated in any fiscal year and available to the National Endowment for the Humanities for the purpose of this subsection.
(3) In carrying out the program authorized by this subsection, the Chairperson of the National Endowment for the Humanities shall have the same authority as is established in subsection (c) of this section and section 959 of this title.
The Chairperson may enter into interagency agreements to promote or assist with the humanities-related activities of other Federal agencies, on either a reimbursable or nonreimbursable basis, and may use funds authorized to be appropriated for the purposes of subsection (c) of this section for the costs of such activities.
It shall be a condition of the receipt of any grant under this section that the group or individual of exceptional talent or the State, State agency, or entity receiving such grant furnish adequate assurances to the Secretary of Labor that all laborers and mechanics employed by contractors or subcontractors on construction projects assisted under this section shall be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with sections 3141–3144, 3146, and 3147 of title 40. The Secretary of Labor shall have, with respect to the labor standards specified in this subsection, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 and section 3145 of title 40.
The Chairperson of the National Endowment for the Humanities shall, in ongoing consultation with State and local agencies, other relevant organizations, and relevant Federal agencies, continue to develop and implement a practical system of national information and data collection and public dissemination on the humanities, scholars, educational and cultural groups, and their audiences. Such system shall include cultural and financial trends in the various humanities fields, trends in audience participation, and trends in humanities education on national, regional, and State levels. Such system shall be used, along with a summary of the data submitted with plans under subsection (f) of this section, to prepare a report on the state of the humanities in the Nation. The state of the humanities report shall include a description of the availability of the Endowment's programs to emerging and culturally diverse scholars, cultural and educational organizations, and communities and of the participation of such scholars, organizations, and communities in such programs. The state of the humanities report shall be submitted to the President and the Congress, and provided the States, not later than October 1, 1992, and quadrennially thereafter.
Any group shall be eligible for financial assistance under this section only if—
(1) no part of its net earnings inures to the benefit of any private stockholder or stockholders, or individual or individuals; and
(2) donations to such group are allowable as a charitable contribution under the standards of section 170(c) of title 26.
The Chairperson, with the advice of the National Council on the Humanities, is authorized to make the following annual awards:
(1) The Jefferson Lecture in the Humanities Award to one individual for distinguished intellectual achievement in the humanities. The annual award shall not exceed $10,000.
(2) The Charles Frankel Prize to honor individuals who have made outstanding contributions to the public understanding of the humanities. Not more than 5 individuals may receive such prize each year. Each prize shall not exceed $5,000.
(Pub. L. 89–209, §7, Sept. 29, 1965, 79 Stat. 850; Pub. L. 90–83, §10(b), Sept. 11, 1967, 81 Stat. 223; Pub. L. 91–346, §8, July 20, 1970, 84 Stat. 445; Pub. L. 93–133, §§2(a)(6), 3, Oct. 19, 1973, 87 Stat. 464, 465; Pub. L. 94–462, title I, §§104(a), 105, title III, §301(b), Oct. 8, 1976, 90 Stat. 1971, 1974, 1979; Pub. L. 96–496, title I, §§104, 109(c), Dec. 4, 1980, 94 Stat. 2584, 2591; renumbered title I, §7, Pub. L. 98–306, §2, May 31, 1984, 98 Stat. 223; renumbered §7 and amended Pub. L. 99–194, title I, §§101(1), 107, Dec. 20, 1985, 99 Stat. 1332, 1335; Pub. L. 101–512, title III, §318 [title I, §107], Nov. 5, 1990, 104 Stat. 1960, 1969.)
Reorganization Plan Numbered 14 of 1950, referred to in subsec. (j), is set out in the Appendix to Title 5, Government Organization and Employees.
In subsec. (j), “sections 3141–3144, 3146, and 3147 of title 40” substituted for “the Davis-Bacon Act, as amended (40 U.S.C. 276a—276a–5)” and “section 3145 of title 40” substituted for “section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c)” on authority of Pub. L. 107–217, §5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted Title 40, Public Buildings, Property, and Works.
1990—Subsec. (a). Pub. L. 101–512, §318 [title I, §107(a)], substituted “the” for “a” after “Foundation”.
Subsec. (c). Pub. L. 101–512, §318 [title I, §107(b)(1)], inserted “enter into arrangements, including contracts, grants, loans, and other forms of assistance, to” after “is authorized to”.
Subsec. (c)(2). Pub. L. 101–512, §318 [title I, §107(b)(2)], struck out “(including contracts, grants, loans, and other forms of assistance)” after “arrangements”.
Subsec. (c)(3). Pub. L. 101–512, §318 [title I, §107(b)(3)], substituted “initiate and support training and workshops in the humanities by making arrangements with institutions or individuals (fellowships” for “award fellowships and grants to institutions or individuals for training and workshops in the humanities. Fellowships”, and inserted closing parenthesis after “periods of time”.
Subsec. (c)(7). Pub. L. 101–512, §318 [title I, §107(b)(4)], struck out “through grants or other arrangements” after “foster,”.
Subsec. (c)(10). Pub. L. 101–512, §318 [title I, §107(b)(5)–(7)], added par. (10).
Subsec. (d). Pub. L. 101–512, §318 [title I, §107(c)], substituted “coordinate” for “correlate”.
Subsec. (f)(2)(A). Pub. L. 101–512, §318 [title I, §107(d)(1)], substituted “the date the State agency is established” for “December 20, 1985,”.
Subsec. (f)(2)(A)(viii)(I). Pub. L. 101–512, §318 [title I, §107(d)(2)(A)], substituted “most recent preceding year for which information is available” for “previous two years”.
Subsec. (f)(2)(A)(viii)(II). Pub. L. 101–512, §318 [title I, §107(d)(2)(B)], inserted “for the most recent preceding year for which information is available,”.
Subsec. (f)(3)(J)(i). Pub. L. 101–512, §318 [title I, §107(d)(3)(A)], substituted “most recent preceding year for which information is available” for “previous two years”.
Subsec. (f)(3)(J)(ii). Pub. L. 101–512, §318 [title I, §107(d)(3)(B)], inserted “for the most recent preceding year for which information is available,”.
Subsec. (g). Pub. L. 101–512, §318 [title I, §107(e)], struck out “not later than 180 days after December 20, 1985” before period at end.
Subsec. (h)(2)(B). Pub. L. 101–512, §318 [title I, §107(f)], substituted “Endowment for” for “Endowment on”.
Subsec. (k). Pub. L. 101–512, §318 [title I, §107(g)], inserted “ongoing” after “shall, in”, substituted “continue to develop and implement” for “develop”, inserted “and public dissemination” after “collection”, struck out “Not later than one year after December 20, 1985, the Chairperson shall submit to the Committee on Education and Labor of the House of Representatives and the Committee on Labor and Human Resources of the Senate a plan for the development and implementation of such system, including a recommendation regarding the need for any additional funds to be appropriated to develop and implement such system.” after “and State levels.”, and substituted “1992, and quadrennially” for “1988, and biennially”.
Subsecs. (l), (m). Pub. L. 101–512, §318 [title I, §107(h)], added subsecs. (l) and (m) and struck out former subsec. (l) which related to reports and plans required by regulation or directives and the transmittal of such reports and plans to the Equal Employment Opportunity Commission.
1985—Subsec. (b). Pub. L. 99–194, §107(1), (5), substituted “chairperson” for “chairman” in par. (1), and in par. (2), substituted “Chairperson” for “Chairman” and “the Chairperson's” for “his” wherever appearing.
Subsec. (c). Pub. L. 99–194, §107(2), (5), substituted “Chairperson” for “Chairman” wherever appearing, substituted “workshops” for “workships” in cl. (3), added cls. (4) and (5) and redesignated existing cls. (4) to (7) as (6) to (9), respectively, substituted “clause (8)” for “clause (6)” in second sentence, and inserted at end “In selecting individuals and groups of exceptional talent as recipients of financial assistance to be provided under this subsection, the Chairperson shall give particular regard to scholars, and educational and cultural institutions, that have traditionally been underrepresented.”
Subsec. (d). Pub. L. 99–194, §107(5), substituted “Chairperson” for “Chairman”.
Subsec. (f). Pub. L. 99–194, §107(3), (5), substituted “Chairperson” for “Chairman” wherever appearing; in par. (2)(A) substituted “December 20, 1985” for “December 4, 1980”, inserted “officer” after “chief executive” wherever appearing in cl. (ii), struck out “and” at end of cl. (v), substituted “, including a description of the progress made toward achieving the goals of the State plan;” for the period at end of cl. (vi), and added cls. (vii) and (viii) and sentence providing that no application may be approved unless the accompanying plan satisfies the requirements specified in this subsection; in par. (2)(B)(i) substituted “six” and “25” for “four” and “20”, respectively; and in par. (3) struck out “and” at end of cl. (G), substituted “, including a description of the progress made toward achieving the goals of the plan;” for the period at end of cl. (H), and added cls. (I) and (J) and sentence providing that no application may be approved unless the accompanying plan satisfies the requirements specified in this subsection.
Subsec. (g). Pub. L. 99–194, §107(4), substituted “The Secretary of Labor shall prescribe standards, regulations, and procedures necessary to carry out this subsection not later than 180 days after December 20, 1985” for “The Secretary of Labor shall have the authority to prescribe standards, regulations, and procedures as he may deem necessary or appropriate to carry out the provisions of this subsection”.
Subsecs. (h)(1), (2)(B), (3), (i). Pub. L. 99–194, §107(5), substituted “Chairperson” for “Chairman” wherever appearing.
Subsecs. (j) to (l). Pub. L. 99–194, §107(6), added subsecs. (j) to (l).
1980—Subsec. (c). Pub. L. 96–496, §109(c), substituted “Committee on Labor and Human Resources” for “Committee on Labor and Public Welfare” in last sentence.
Subsec. (f)(2). Pub. L. 96–496, §104(a)(1), substituted provisions relating to the designation of State humanities councils as State administrative agencies, requiring matching State funding and submission by States wishing to designate administrative State agencies of grant applications and accompanying administrative plans, and prescribing a grant recipient application procedure for provisions requiring entities desiring to receive financial assistance under this subsection to submit grant applications and accompanying administrative plans.
Subsec. (f)(3). Pub. L. 96–496, §104(a)(2), substituted provisions requiring entities desiring to receive financial assistance under this subsection to submit grant applications and accompanying administrative plans for provisions relating to the appointment of grant recipient members.
Subsec. (f)(4). Pub. L. 96–496, §104(a)(3), in provisions preceding subpar. (A), substituted “each State and each grant recipient” for “each grant recipient” and “such States and grant recipients” for “such grant recipients”, in subpar. (A), substituted “34 per centum of the amount of such excess for such” for “the amount of such excess which is no greater than 25 per centum of the sums available to carry out this subsection for any” and inserted “States and regional groups and”, in subpar. (B), substituted “44 per centum of the amount of such excess for such fiscal year” for “the amount of such excess, if any, which remains after reserving in full for the Chairman the amount required under subparagraph (A)” and “States and grant recipients” for “grant recipients” and struck out “but in no event shall any grant recipient be allotted less than $200,000” after “Chairman” and added subpar. (C).
Subsec. (f)(5)(A). Pub. L. 96–496, §104(a)(4)(A), substituted “The amount of each allotment to a State for any fiscal year under this subsection shall be available to each State or grant recipient, which has a plan or application approved by the Chairman in effect on the first day of such fiscal year, to pay not more than 50 per centum of the total cost of any project or production described in paragraph (1). The amount of any” for “Whenever the provisions of paragraph (3)(B) of this subsection apply in any State, that part of any”.
Subsec. (f)(5)(B). Pub. L. 96–496, §104(a)(4)(B), inserted “State agency or”.
Subsec. (f)(5)(E). Pub. L. 96–496, §104(a)(4)(C), added subpar. (E).
Subsec. (f)(7). Pub. L. 96–496, §104(a)(5), inserted “group or” in subpar. (A), inserted “State agency or” and substituted “State plan or grant recipient application” for “plan” in subpar. (B), inserted “group or State agency or” in subpar. (C), and inserted “group, State agency, or” in three places in provisions following subpar. (C).
Subsec. (f)(8). Pub. L. 96–496, §104(a)(6), substituted “the third sentence of paragraph (4), and paragraphs (5) and (6)” for “paragraphs (4), (5), and (6)”.
Subsec. (g). Pub. L. 96–496, §104(b), substituted “State agency or” for “State”.
Subsec. (i). Pub. L. 96–496, §104(c), added subsec. (i).
1976—Subsecs. (f), (g). Pub. L. 94–462, §§104(a), 105, added subsecs. (f) and (g).
Subsec. (h). Pub. L. 94–462, §301(b), added subsec. (h).
1973—Subsec. (c). Pub. L. 93–133, §2(a)(6), in provisions preceding cl. (1) struck out reference to the Federal Council on the Arts and the Humanities, in cl. (2) inserted proviso that loans made by the Endowment shall be made in accordance with terms and conditions approved by the Secretary of the Treasury, in cl. (6) struck out reference to section 111 of title 44, and added cl. (7) and provisions following cl. (7).
Subsec. (d). Pub. L. 93–133, §3, required the Chairman to correlate the programs of the National Endowment for the Humanities with designated State humanities agencies.
1970—Subsec. (b)(2). Pub. L. 91–346, §8(a), provided that upon expiration of his term of office the Chairman shall serve until his successor shall have been appointed and shall have qualified.
Subsec. (c)(2). Pub. L. 91–346, §8(b), announced intention of the Endowment for the Humanities to strengthen teaching potential as well as research potential and authorized the Endowment to make contracts as well as grants etc., in its efforts to accomplish its goals.
Subsec. (c)(5). Pub. L. 91–346, §8(c), announced intention to foster education in as well as public understanding and appreciation of the humanities.
1967—Subsec. (b)(1). Pub. L. 90–83 struck out provision setting the compensation of the Chairman at the level prescribed by law for the Director of the National Science Foundation.
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 changed to Committee on Education and the Workforce of House of Representatives by House Resolution No. 5, One Hundred Twelfth Congress, Jan. 5, 2011.
Amendment by Pub. L. 101–512 effective Oct. 1, 1990, see section 318 [title IV, §403(a)] of Pub. L. 101–512, set out as a note under section 951 of this title.
Amendment by section 107(3) of Pub. L. 99–194 not applicable with respect to plans submitted for financial assistance to be provided with funds appropriated for fiscal year 1986, see section 112 of Pub. L. 99–194, set out as a note under section 954 of this title.
Section 104(b) of Pub. L. 94–462 provided that: “The amendment made by subsection (a) [amending this section] shall be effective with respect to fiscal year 1977 and succeeding fiscal years.”
Amendment by section 2(a)(6) of Pub. L. 93–133 effective on and after July 1, 1973, see section 2(b) of Pub. L. 93–133, set out as a note under section 951 of this title.
For termination, effective May 15, 2000, of provisions in subsec. (k) of this section relating to quadrennially submitting the state of the humanities report 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 page 183 of House Document No. 103–7.
There is hereby authorized a program to support artistic and cultural programs in the Nation's Capital to be established under the direction of the Commission of Fine Arts. Not to exceed $10,000,000 annually is authorized to provide grants for general operating support to eligible organizations located in the District of Columbia whose primary purpose is performing, exhibiting and/or presenting arts.
Eligibility for grants shall be limited to not-for-profit, non-academic institutions of demonstrated national repute and is further limited to organizations having annual income, exclusive of Federal funds, in excess of $1,000,000 for each of the three years prior to receipt of a grant. Each eligible organization must have its principal place of business in the District of Columbia and in a facility or facilities located in the District of Columbia.
The Chairman of the Commission of Fine Arts shall establish an application process and shall, along with the Chairman of the National Endowment for the Arts and the Chairman of the National Endowment for the Humanities determine the eligibility of applicant organizations.
Of the funds provided for grants, 70 per centum shall be equally distributed among all qualifying organizations and 30 per centum shall be distributed based on the size of an organization's total annual income, exclusive of Federal funds, compared to the combined total of the annual income, exclusive of Federal funds, of all eligible institutions. No organization shall receive a grant in excess of $650,000 in a single year.
An application process shall be established no later than March 1, 1986, and initial grants shall be awarded no later than June 1, 1986.
(Pub. L. 99–190, §101(d) [title II, §201], Dec. 19, 1985, 99 Stat. 1224, 1261; Pub. L. 99–500, §101(h) [title II, §201], Oct. 18, 1986, 100 Stat. 1783–242, 1783–281, and Pub. L. 99–591, §101(h) [title II, §201], Oct. 30, 1986, 100 Stat. 3341–242, 3341–281; Pub. L. 100–202, §101(g) [title II, §201], Dec. 22, 1987, 101 Stat. 1329–213, 1329–250; Pub. L. 101–121, title II, Oct. 23, 1989, 103 Stat. 739; Pub. L. 106–219, §2, June 20, 2000, 114 Stat. 346; Pub. L. 108–81, title V, §502(b), Sept. 25, 2003, 117 Stat. 1003; Pub. L. 111–88, div. A, title IV, §418, Oct. 30, 2009, 123 Stat. 2960; Pub. L. 112–74, div. E, title III, Dec. 23, 2011, 125 Stat. 1035.)
Pub. L. 99–591 is a corrected version of Pub. L. 99–500.
Section was not enacted as part of the National Foundation on the Arts and the Humanities Act of 1965 which comprises this subchapter.
2011—Pub. L. 112–74 substituted “Each eligible organization must have its principal place of business in the District of Columbia and in a facility or facilities located in the District of Columbia.” for “The following organizations are deemed eligible to receive grants under this section: Folger Theater, Corcoran Gallery of Art, Phillips Gallery, Arena Stage, the National Building Museum, the National Children's Museum, the National Symphony Orchestra, the National Opera, and Ford's Theater.” in second par. and struck out “in addition to those herein named” at end of third par.
2009—Pub. L. 111–88 substituted “$10,000,000” for “$7,500,000” in first par. and “$650,000” for “$500,000” in fourth par.
2003—Pub. L. 108–81 substituted “National Children's Museum” for “National Capital Children's Museum” in second par.
2000—Pub. L. 106–219 substituted “National Opera” for “Washington Opera Society” in second par.
1989—Pub. L. 101–121 substituted “$7,500,000” for “$5,000,000” in first par.
1987—Pub. L. 100–202 substituted “direction of the Commission of Fine Arts” for “direction of the National Endowment for the Humanities” in first par. and amended third par. generally. Prior to amendment, third par. read as follows: “The Chairman of the National Endowment for the Humanities shall establish an application process and shall, along with the Chairman of the National Endowment for the Arts and the Chairman of the Commission on Fine Arts determine the eligibility of applicant organizations in addition to those herein named.”
1986—Pub. L. 99–500 and Pub. L. 99–591 substituted “whose primary purpose is” for “which are engaged primarily in” in first par. and “annual income, exclusive of Federal Funds,” for “an annual operating budget”, “operating budget”, and “operating budgets” in third and fourth pars.
Pub. L. 108–81, title V, §502, Sept. 25, 2003, 117 Stat. 1003, provided that:
“(a)
“(b)
Pub. L. 106–219, June 20, 2000, 114 Stat. 346, provided that:
“The Washington Opera, organized under the laws of the District of Columbia, is designated as the ‘National Opera’.
“Any reference in a law, map, regulation, document, paper or other record of the United States to the Washington Opera referred to in section 1 shall be deemed to be a reference to the ‘National Opera’.”
There is established in the National Endowment for the Humanities a National Council on the Humanities.
The Council shall be composed of the Chairperson of the National Endowment for the Humanities, who shall be the Chairperson of the Council, and twenty-six other members appointed by the President, by and with the advice and consent of the Senate, from private life. Such members shall be individuals who (1) are selected from among private citizens of the United States who are recognized for their broad knowledge of, expertise in, or commitment to the humanities, and (2) have established records of distinguished service and scholarship or creativity and in a manner which will provide a comprehensive representation of the views of scholars and professional practitioners in the humanities and of the public throughout the United States. The President is requested in the making of such appointments to give consideration to such recommendations as may from time to time be submitted to him by leading national organizations concerned with the humanities. In making such appointments, the President shall give due regard to equitable representation of women, minorities, and individuals with disabilities who are involved in the humanities.
Each member shall hold office for a term of six years, except that (1) the members first taking office shall serve, as designated by the President, nine for terms of two years, nine for terms of four years, and eight for terms of six years, and (2) any member appointed to fill a vacancy shall serve for the remainder of the term for which such member's predecessor was appointed. No member shall be eligible for reappointment during the two-year period following the expiration of such member's term. Notwithstanding any other provisions of this subsection, a member shall serve after the expiration of such member's term until such member's successor takes office.
The Council shall meet at the call of the Chairperson but not less often than twice during each calendar year. Fourteen members of the Council shall constitute a quorum.
Members shall receive compensation at a rate to be fixed by the Chairperson but not to exceed the per diem equivalent of the rate authorized for grade GS–18 by section 5332 of title 5 and be allowed travel expenses including per diem in lieu of subsistence, as authorized by law (section 5703 of title 5) for persons in the Government service employed intermittently.
The Council shall (1) advise the Chairperson with respect to policies, programs, and procedures for carrying out the Chairperson's functions, and (2) shall review applications for financial support and make recommendations thereon to the Chairperson. The Chairperson shall not approve or disapprove any such application until the Chairperson has received the recommendation of the Council on such application, unless the Council fails to make a recommendation thereon within a reasonable time. In the case of any application involving $30,000, or less, the Chairperson may approve or disapprove such request if such action is taken pursuant to the terms of a delegation of authority from the Council to the Chairperson, and provided that each such action by the Chairperson shall be reviewed by the Council: Provided, That the terms of any such delegation of authority shall not permit obligations for expenditure of funds under such delegation for any fiscal year which exceed an amount equal to 10 per centum of the sums appropriated for that fiscal year pursuant to subparagraph (B) of paragraph (1) of section 960(a) of this title.
(Pub. L. 89–209, §8, Sept. 29, 1965, 79 Stat. 851; Pub. L. 90–348, §4, June 18, 1968, 82 Stat. 186; Pub. L. 91–346, §5(c), July 20, 1970, 84 Stat. 444; Pub. L. 93–133, §2(a)(7), Oct. 19, 1973, 87 Stat. 464; Pub. L. 94–462, title I, §103(b), Oct. 8, 1976, 90 Stat. 1971; Pub. L. 96–496, title I, §105, Dec. 4, 1980, 94 Stat. 2587; renumbered title I, §8, and amended Pub. L. 98–306, §§2, 5(b), May 31, 1984, 98 Stat. 223, 224; renumbered §8 and amended Pub. L. 99–194, title I, §§101(1), 108, Dec. 20, 1985, 99 Stat. 1332, 1338.)
1985—Subsec. (b). Pub. L. 99–194, §108(1), substituted “Chairperson” for “Chairman” in two places, substituted “individuals who (1) are selected from among private citizens of the United States who are recognized for their broad knowledge of, expertise in, or commitment to the humanities, and (2) have established records of” for “selected on the basis of”, and inserted provision that in making such appointments, the President shall give due regard to equitable representation of women, minorities, and individuals with disabilities who are involved in the humanities.
Subsec. (c). Pub. L. 99–194, §108(2), substituted “such member's” for “his” wherever appearing.
Subsecs. (d), (e). Pub. L. 99–194, §108(3), substituted “Chairperson” for “Chairman” wherever appearing.
Subsec. (f). Pub. L. 99–194, §108(3), (4), substituted “Chairperson” for “Chairman” wherever appearing, “the Chairperson's” for “his”, and “until the Chairperson has received” for “until he has received”.
1984—Subsec. (c). Pub. L. 98–306, §5(b), inserted “Notwithstanding any other provisions of this subsection, a member shall serve after the expiration of his term until his successor takes office.”
1980—Subsec. (f). Pub. L. 96–496 substituted “$30,000” for “$17,500”.
1976—Subsec. (b). Pub. L. 94–462 inserted “, by and with the advice and consent of the Senate,” after “by the President”.
1973—Subsec. (f). Pub. L. 93–133 substituted “$17,500” for “$10,000” and inserted proviso that the terms of delegation of authority shall not permit obligations for expenditure of funds under such delegation for any fiscal year which exceeds an amount equal to 10 per centum of the sums appropriated for that fiscal year.
1970—Subsec. (e). Pub. L. 91–346 set forth provisions governing compensation of persons employed for the Government service on an intermittent basis.
1968—Subsec. (f). Pub. L. 90–348 inserted provisions which authorized the Chairman, in the case of any application involving $10,000 or less, to approve or disapprove the application if such action is pursuant to the terms of a delegation of authority from the Endowment Council and such action is reviewed by the Endowment Council.
Amendment by Pub. L. 93–133 effective on and after July 1, 1973, see section 2(b) of Pub. L. 93–133, set out as a note under section 951 of this title.
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, §101(c)(1)] of Pub. L. 101–509, set out in a note under section 5376 of Title 5.
Section, Pub. L. 98–146, title II, Nov. 4, 1983, 97 Stat. 949, which directed that persons serving on National Council on the Humanities continue until their successors are qualified for office, was omitted as superseded. See section 957(c) of this title, as amended by Pub. L. 98–306. Similar provisions were contained in Pub. L. 97–394, title II, Dec. 30, 1982, 96 Stat. 1994.
There is established within the Foundation a Federal Council on the Arts and the Humanities.
The Council shall be composed of the Chairperson of the National Endowment for the Arts, the Chairperson of the National Endowment for the Humanities, the Director of the Institute of Museum and Library Services, the Secretary of Education, the Secretary of the Smithsonian Institution, the Director of the National Science Foundation, the Librarian of Congress, the Director of the National Gallery of Art, the Chairman of the Commission of Fine Arts, the Archivist of the United States, the Commissioner, Public Buildings Service, General Services Administration, the Assistant Secretary for Aging, a member designated by the Secretary of State, and a member designated by the Secretary of the Interior, a member designated by the Chairman of the Senate Commission on Art and Antiquities, and a member designated by the Speaker of the House. The President shall designate the presiding officer of the Council from among the members. The President is authorized to change the membership of the Council from time to time as the President deems necessary to meet changes in Federal programs or executive branch organization.
The Council shall—
(1) advise and consult with the Chairperson of the National Endowment for the Arts and the Chairperson of the National Endowment for the Humanities on major problems arising in carrying out the purposes of the Foundation;
(2) advise and consult with the National Museum Services Board and with the Director of the Institute of Museum and Library Services on major problems arising in carrying out the purposes of such Institute;
(3) coordinate, by advice and consultation, so far as is practicable, the policies and operations of the National Endowment for the Arts, the National Endowment for the Humanities, and the Institute of Museum and Library Services, including joint support of activities, as appropriate;
(4) promote coordination between the programs and activities of the Foundation and related programs and activities of other Federal agencies;
(5) plan and coordinate appropriate participation (including productions and projects) in major and historic national events;
(6) undertake studies and make reports which address the state of the arts and humanities, particularly with respect to their economic needs and problems; and
(7) encourage an ongoing dialogue in support of the arts and the humanities among Federal agencies.
(Pub. L. 89–209, §9, Sept. 29, 1965, 79 Stat. 851; Pub. L. 91–346, §9, July 20, 1970, 84 Stat. 446; Pub. L. 93–133, §2(a)(8), Oct. 19, 1973, 87 Stat. 464; Pub. L. 94–462, title II, §208, Oct. 8, 1976, 90 Stat. 1977; Pub. L. 96–496, title I, §§106, 109(d), Dec. 4, 1980, 94 Stat. 2587, 2591; renumbered title I, §9, and amended Pub. L. 98–306, §§2, 6, May 31, 1984, 98 Stat. 223, 224; renumbered §9 and amended Pub. L. 99–194, title I, §§101(1), 109, Dec. 20, 1985, 99 Stat. 1332, 1339; Pub. L. 101–512, title III, §318 [title I, §108], Nov. 5, 1990, 104 Stat. 1960, 1970; Pub. L. 103–171, §3(b)(2), Dec. 2, 1993, 107 Stat. 1991; Pub. L. 111–340, title II, §208(2), Dec. 22, 2010, 124 Stat. 3603.)
2010—Subsecs. (b), (c)(2), (3). Pub. L. 111–340 substituted “Institute of Museum and Library Services” for “Institute of Museum Services”.
1993—Subsec. (b). Pub. L. 103–171 substituted “Assistant Secretary for Aging” for “Commissioner on Aging”.
1990—Subsec. (c)(7). Pub. L. 101–512, §318 [title I, §108(a)], added par. (7).
Subsec. (d). Pub. L. 101–512, §318 [title I, §108(b)], struck out subsec. (d) which related to studies on Federal support to museums and the impact of Institute of Museum Services and of conservation and preservation practices.
1985—Subsec. (b). Pub. L. 99–194, §109(1), substituted “Chairperson” for “Chairman” in two places in first sentence, “presiding officer” for “Chairman” in second sentence, and “the President” for “he” in last sentence.
Subsec. (c)(1). Pub. L. 99–194, §109(2), substituted “Chairperson” for “Chairman” wherever appearing.
Subsec. (d). Pub. L. 99–194, §109(3), added subsec. (d). Former subsec. (d), relating to a study and report to the President and the Congress on artistic employment opportunities, was struck out.
Subsec. (e). Pub. L. 99–194, §109(3), struck out subsec. (e) which provided for a study and report to the President and the Congress on arts and artifacts indemnification.
1984—Subsec. (b). Pub. L. 98–306, §6(a), inserted “the Director of the Institute of Museum Services,”.
Subsec. (c)(4). Pub. L. 98–306, §6(b), struck out “and the Institute of Museum Services” after “Foundation”.
1980—Subsec. (b). Pub. L. 96–496, §§106(a), 109(d), inserted “the Commissioner on Aging,” and substituted “Secretary of Education” for “United States Commissioner of Education”.
Subsec. (c)(6). Pub. L. 96–496, §106(b), added par. (6).
Subsecs. (d), (e). Pub. L. 96–496, §106(c), added subsecs. (d) and (e).
1976—Subsec. (c)(2), (3). Pub. L. 94–462, §208(1), (2), added par. (2), redesignated former par. (2) as (3), and as so redesignated inserted “and the Institute of Museum Services,” after “Humanities,”. Former par. (3) redesignated (4).
Subsec. (c)(4), (5). Pub. L. 94–462, §208(1), (3), redesignated former par. (3) as (4), inserted “and the Institute of Museum Services” after “Foundation”, and redesignated former par. (4) as (5).
1973—Subsec. (b). Pub. L. 93–133 included the Commissioner, Public Buildings Service, General Service Administration, a member designated by the Secretary of the Interior, a member designated by the Chairman of the Senate Commission on Art and Antiquities, and a member designated by the Speaker of the House, as members of the Federal Council on the Arts and Humanities.
1970—Subsec. (b). Pub. L. 91–346 included the Archivist of the United States as a member of the Federal Council on the Arts and Humanities.
Amendment by Pub. L. 101–512 effective Oct. 1, 1990, see section 318 [title IV, §403(a)] of Pub. L. 101–512, set out as a note under section 951 of this title.
Amendment by Pub. L. 93–133 effective on and after July 1, 1973, see section 2(b) of Pub. L. 93–133, set out a a note under section 951 of this title.
In addition to any authorities vested in them by other provisions of this subchapter, the Chairperson of the National Endowment for the Arts and the Chairperson of the National Endowment for the Humanities, in carrying out their respective functions, shall each have authority—
(1) to prescribe such regulations as the Chairperson deems necessary governing the manner in which the Chairperson's functions shall be carried out;
(2) in the discretion of the Chairperson of an Endowment, after receiving the recommendation of the National Council of that Endowment, to receive money and other property donated, bequeathed, or devised to that Endowment with or without a condition or restriction, including a condition that the Chairperson use other funds of that Endowment for the purposes of the gift, except that a Chairperson may receive a gift without a recommendation from the Council to provide support for any application or project which can be approved without Council recommendation under the provisions of sections 955(f) and 957(f) of this title, and may receive a gift of $15,000, or less, without Council recommendation in the event the Council fails to provide such recommendation within a reasonable period of time, and to use, sell, or otherwise dispose of such property for the purpose of carrying out sections 954(c) and 956(c) of this title;
(3) to appoint employees, subject to the civil service laws, as necessary to carry out the Chairperson's functions, define their duties, and supervise and direct their activities;
(4) to utilize experts and consultants, including panels of experts, who may be employed as authorized by section 3109 of title 5;
(5) to accept and utilize the services of voluntary and uncompensated personnel and reimburse them for travel expenses, including per diem, as authorized by section 5703 of title 5 for persons in the Government service employed without compensation;
(6) to make advance, progress, and other payments without regard to section 3324 of title 31;
(7) to rent office space in the District of Columbia; and
(8) to make other necessary expenditures.
(1) In any case in which any money or other property is donated, bequeathed, or devised to the Foundation without designation of the Endowment for the benefit of which such property is intended, and without condition or restriction other than that it be used for the purposes of the Foundation, such property shall be deemed to have been donated, bequeathed, or devised in equal shares to each Endowment and each Chairperson of an Endowment shall have authority to receive such property.
(2) In any case in which any money or other property is donated, bequeathed, or devised to the Foundation with a condition or restriction, such property shall be deemed to have been donated, bequeathed, or devised to that Endowment whose function it is to carry out the purpose or purposes described or referred to by the terms of such condition or restriction, and each Chairperson of an Endowment shall have authority to receive such property.
(3) For the purposes of the preceding sentence, if one or more of the purposes of such a condition or restriction is covered by the functions of both Endowments, or if some of the purposes of such a condition or restriction are covered by the functions of one Endowment and other of the purposes of such a condition or restriction are covered by the functions of the other Endowment, the Federal Council on the Arts and the Humanities shall determine an equitable manner for distribution between each of the Endowments of the property so donated, bequeathed, or devised.
(4) For the purposes of the income tax, gift tax, and estate tax laws of the United States, any money or other property donated, bequeathed, or devised to the Foundation or one of its Endowments and received by the Chairperson of an Endowment pursuant to authority derived under this subsection shall be deemed to have been donated, bequeathed, or devised to or for the use of the United States.
The Chairperson of the National Endowment for the Arts shall utilize advisory panels to review applications, and to make recommendations to the National Council on the Arts in all cases except cases in which the Chairperson exercises authority delegated under section 955(f) of this title. When reviewing applications, such panels shall recommend applications for projects, productions, and workshops solely on the basis of artistic excellence and artistic merit. The Chairperson shall issue regulations and establish procedures—
(1) to ensure that all panels are composed, to the extent practicable, of individuals reflecting a wide geographic, ethnic, and minority representation as well as individuals reflecting diverse artistic and cultural points of view;
(2) to ensure that all panels include representation of lay individuals who are knowledgeable about the arts but who are not engaged in the arts as a profession and are not members of either artists’ organizations or arts organizations;
(3) to ensure that, when feasible, the procedures used by panels to carry out their responsibilities are standardized;
(4) to require panels—
(A) to create written records summarizing—
(i) all meetings and discussions of such panel; and
(ii) the recommendations made by such panel to the Council; and
(B) to make such records available to the public in a manner that protects the privacy of individual applicants and panel members;
(5) to require, when necessary and feasible, the use of site visitations to view the work of the applicant and deliver a written report on the work being reviewed, in order to assist panelists in making their recommendations; and
(6) to require that the membership of each panel change substantially from year to year and to provide that each individual is ineligible to serve on a panel for more than 3 consecutive years.
In making appointments to panels, the Chairperson shall ensure that an individual who has a pending application for financial assistance under this subchapter, or who is an employee or agent of an organization with a pending application, does not serve as a member of any panel before which such application is pending. The prohibition described in the preceding sentence shall commence with respect to such individual beginning on the date such application is submitted and shall continue for so long as such application is pending.
The Chairperson of the National Endowment for the Arts and the Chairperson of the National Endowment for the Humanities shall each submit an annual report to the President for transmittal to the Congress on or before the 15th day of April of each year. The report shall summarize the activities of the Endowment for the preceding year, and may include such recommendations as the Chairperson deems appropriate.
The National Council on the Arts and the National Council on the Humanities, respectively, may each submit an annual report to the President for transmittal to the Congress on or before the 15th day of April of each year setting forth a summary of its activities during the preceding year or its recommendations for any measures which it considers necessary or desirable.
(1) The Chairperson of the National Endowment for the Arts and the Chairperson of the National Endowment for the Humanities shall conduct a post-award evaluation of projects, productions, and programs for which financial assistance is provided by their respective Endowments under sections 954(c) and 956(c) of this title. Such evaluation may include an audit to determine the accuracy of the reports required to be submitted by recipients under clauses (i) and (ii) of paragraph (2)(A). As a condition of receiving such financial assistance, a recipient shall comply with the requirements specified in paragraph (2) that are applicable to the project, production, or program for which such financial assistance is received.
(2)(A) The recipient of financial assistance provided by either of the Endowments shall submit to the Chairperson of the Endowment involved—
(i) a financial report containing such information as the Chairperson deems necessary to ensure that such financial assistance is expended in accordance with the terms and conditions under which it is provided;
(ii) a report describing the project, production, or program carried out with such financial assistance; and
(iii) if practicable, as determined by the Chairperson, a copy of such project, production, or program.
(B) Such recipient shall comply with the requirements of this paragraph not later than 90 days after the end of the period for which such financial assistance is provided. The Chairperson may extend the 90-day period only if the recipient shows good cause why such an extension should be granted.
(3) If such recipient substantially fails to satisfy the purposes for which such financial assistance is provided and the criteria specified in subsection (c)(3)(A) 1 of this section, as determined by the Chairperson of the Endowment that provided such financial assistance, then such Chairperson may—
(A) for purposes of determining whether to provide any subsequent financial assistance, take into consideration the results of the post-award evaluation conducted under this subsection;
(B) prohibit the recipient of such financial assistance to use the name of, or in any way associate such project, production, or program with the Endowment that provided such financial assistance; and
(C) if such project, production, or program is published, require that the publication contain the following statement: “The opinions, findings, conclusions, and recommendations expressed herein do not reflect the views of the National Endowment for the Arts or the National Endowment for the Humanities.”
(Pub. L. 89–209, §10, Sept. 29, 1965, 79 Stat. 852; Pub. L. 90–348, §5, June 18, 1968, 82 Stat. 186; Pub. L. 91–346, §§5(a)(3), 10, 11, July 20, 1970, 84 Stat. 443, 446; Pub. L. 93–133, §2(a)(9), (10), Oct. 19, 1973, 87 Stat. 465; Pub. L. 96–496, title I, §107, Dec. 4, 1980, 94 Stat. 2588; renumbered title I, §10, Pub. L. 98–306, §2, May 31, 1984, 98 Stat. 223; renumbered §10 and amended Pub. L. 99–194, title I, §§101(1), 110, Dec. 20, 1985, 99 Stat. 1332, 1339; Pub. L. 101–512, title III, §318 [title I, §109], Nov. 5, 1990, 104 Stat. 1960, 1970.)
In subsec. (a)(5), reference to “section 5703 of title 5” substituted for “law (5 U.S.C. 73b–2)” on authority of Pub. L. 89–554, §7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.
1990—Subsec. (a). Pub. L. 101–512, §318 [title I, §109(5)(A)], redesignated concluding provisions of subsec. (a) as subsec. (b).
Subsec. (a)(4). Pub. L. 101–512, §318 [title I, §109(1)(A)], struck out “from time to time, as appropriate,” after “to utilize”.
Subsec. (a)(6). Pub. L. 101–512, §318 [title I, §109(1)(B)], substituted “section 3324 of title 31” for “the provisions of section 3648 of the Revised Statutes (31 U.S.C. 529)”.
Subsec. (b). Pub. L. 101–512, §318 [title I, §109(9)], which directed amendment of this section by striking the sixth sentence and all that follows through “pending.” was executed by striking all that follows through “pending.” the second place it appeared to reflect the probable intent of Congress. The provisions struck out read as follows: “In selecting panels of experts under clause (4) to review and make recommendations with respect to the approval of applications for financial assistance under this subchapter, each Chairperson shall appoint individuals who have exhibited expertise and leadership in the field under review, who broadly represent diverse characteristics in terms of aesthetic or humanistic perspective, and geographical factors, and who broadly represent cultural diversity. Each Chairperson shall assure that the membership of panels changes substantially from year to year, and that no more than 20 per centum of the annual appointments shall be for service beyond the limit of three consecutive years on a subpanel. In making appointments, each Chairperson shall give due regard to the need for experienced as well as new members on each panel. Panels of experts appointed to review or make recommendations with respect to the approval of applications or projects for funding by the National Endowment for the Arts shall, when reviewing such applications and projects, recommend for funding only applications and projects that in the context in which they are presented, in the experts’ view, foster excellence, are reflective of exceptional talent, and have significant literary, scholarly, cultural, or artistic merit. Whenever there is pending an application submitted by an individual for financial assistance under section 954(c) of this title, such individual may not serve as a member of any subpanel (or panel where a subpanel does not exist) before which such application is pending. The prohibition described in the previous sentence shall commence on the date the application is submitted and continue for so long as the application is pending.”
Pub. L. 101–512, §318 [title I, §109(8)], which directed amendment of the fifth sentence of this section by making the substitution for “For the purpose”, was executed by substituting “(4) For the purposes” for “For the purposes” to reflect the probable intent of Congress.
Pub. L. 101–512, §318 [title I, §109(4)–(7)], redesignated concluding provisions of subsec. (a) as subsec. (b), inserted pars. (1), (2), and (3) designations, and struck out “(A)” before “without designation” and “(B)” before “without condition”. Former subsec. (b) redesignated (d).
Subsecs. (c) to (e). Pub. L. 101–512, §318 [title I, §109(3), (4), (9)], added subsec. (c), redesignated former subsecs. (b) and (c) as (d) and (e), respectively, and struck out former subsec. (e) which related to studies and reports on the state and quality of arts and humanities education in public elementary and secondary schools. Former subsec. (d) redesignated (f).
Subsec. (f). Pub. L. 101–512, §318 [title I, §109(2)–(4)], redesignated subsec. (d) as (f) and, in par. (3), substituted “subsection (c)(3)(A) of this section” for “the last sentence of subsection (a) of this section”, and struck out former subsec. (f) which related to report to Congress on selection of experts for appointment to panels, and procedures for recommendations on financial assistance applications.
1985—Subsec. (a). Pub. L. 99–194, §110(1), substituted “Chairperson” for “Chairman” in two places in provisions preceding cl. (1); in cl. (1) substituted “the chairperson” and “the chairperson's” for “he” and “his”, respectively; in cl. (2) substituted “Chairperson” for “Chairman” wherever appearing; in cl. (3) substituted “the Chairperson's” for “his”; in cl. (4) substituted “section 3109 of title 5” for “section 15 of the Administrative Expenses Act of 1946, as amended (5 U.S.C. 55a)” and struck out proviso that any advisory panel appointed to review or make recommendations with respect to the approval of applications or projects for funding was to have broad geographic and culturally diverse representation; and in provisions following par. (8) substituted “Chairperson” for “Chairman” wherever appearing and inserted provisions relating to the selection of a panel of experts to review financial assistance applications and the considerations to be made in the review of such applications.
Subsec. (b). Pub. L. 99–194, §110(2), substituted “Chairperson” for “Chairman” wherever appearing.
Subsecs. (d) to (f). Pub. L. 99–194, §110(3), added subsecs. (d) to (f). Former subsec. (d), relating to studies and reports to the President and the Congress on endowment uses of donations, bequests, and devises, was struck out.
1980—Subsec. (a)(4). Pub. L. 96–496, §107(a), inserted “and culturally diverse”.
Subsecs. (b), (c). Pub. L. 96–496, §107(b), (c), substituted “April” for “January”.
Subsec. (d). Pub. L. 96–496, §107(d), added subsec. (d).
1973—Subsec. (a)(2). Pub. L. 93–133, §2(a)(9), added exception that a Chairman may receive a gift without a recommendation from the Council to provide support for any application or project which can be approved without Council recommendation under the provisions of sections 955(f) and 957(f) of this title, and may receive a gift of $15,000 or less without Council recommendation when the Council fails to recommend within a reasonable period of time.
Subsec. (a)(4). Pub. L. 93–133, §2(a)(10), inserted proviso that any advisory panel appointed to review or make recommendations with respect to the approval of applications or projects for funding shall have broad geographic representation.
1970—Subsec. (a)(2). Pub. L. 91–346, §5(a)(3), struck out reference to the functions transferred by section 955(a) of this title.
Subsec. (a)(3) to (5). Pub. L. 91–346, §11(1)–(3), inserted “to” at beginning of cls. (3) to (5).
Subsec. (a)(6) to (8). Pub. L. 91–346, §§10, 11(4), (5), redesignated cls. (6) and (7), and all references thereto, as cls. (7) and (8), added new cl. (6), and inserted “to” at beginning of cls. (7) and (8).
1968—Subsec. (a). Pub. L. 90–348 combined provisions of cls. (2) and (3) into cl. (2), and, in cl. (2) as thus combined, extended the area for the exercise of discretion of the Chairman of an Endowment, after receiving the recommendation of the National Council of that Endowment, in the disposition of gifts to include both gifts made with condition and gifts made without condition, redesignated cls. (4) to (8) as (3) to (7), and in provisions following cl. (7), struck out references to cls. (2) and (3) wherever appearing.
Amendment by Pub. L. 101–512 effective Oct. 1, 1990, see section 318 [title IV, §403(a)] of Pub. L. 101–512, set out as a note under section 951 of this title.
Amendment by Pub. L. 93–133 effective on and after July 1, 1973, see section 2(b) of Pub. L. 93–133, set out as a note under section 951 of this title.
Amendment by section 5(a)(3) of Pub. L. 91–346 effective after June 30, 1970, see section 5(d)(3)(A) of Pub. L. 91–346, set out as a note under section 955 of this title.
For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which certain reporting requirements under subsec. (d) of this section are listed in item 7 on page 183), see section 3003 of Pub. L. 104–66, as amended, and section 1(a)(4) [div. A, §1402(1)] of Pub. L. 106–554, set out as notes under section 1113 of Title 31, Money and Finance.
Memorandum of President of the United States, Dec. 8, 2004, 69 F.R. 74937, provided:
Memorandum for the Chairperson of the National Endowment for the Arts
By the authority vested in me as President by the Constitution and the laws of the United States, including section 301 of title 3, United States Code, I hereby delegate to you the functions conferred upon the President in the National Foundation on the Arts and Humanities Act of 1965, as amended (20 U.S.C. 959(d)) to provide the specified report relating to the National Endowment for the Arts to the Congress.
You are authorized and directed to publish this memorandum in the Federal Register.
George W. Bush.
Memorandum of President of the United States, Dec. 8, 2004, 69 F.R. 74939, provided:
Memorandum for the Chairperson of the National Endowment for the Humanities
By the authority vested in me as President by the Constitution and the laws of the United States, including section 301 of title 3, United States Code, I hereby delegate to you the functions conferred upon the President in the National Foundation on the Arts and Humanities Act of 1965, as amended (20 U.S.C. 959(d)) to provide the specified report relating to the National Endowment for the Humanities to the Congress.
You are authorized and directed to publish this memorandum in the Federal Register.
George W. Bush.
1 So in original. Subsec. (c)(3) of this section does not contain a subpar. (A).
The National Endowment for the Arts and the National Endowment for the Humanities are on and after August 2, 2005, authorized to solicit, accept, receive, and invest in the name of the United States, gifts, bequests, or devises of money and other property or services and to use such in furtherance of the functions of the National Endowment for the Arts and the National Endowment for the Humanities. Any proceeds from such gifts, bequests, or devises, after acceptance by the National Endowment for the Arts or the National Endowment for the Humanities, shall be paid by the donor or the representative of the donor to the Chairman. The Chairman shall enter the proceeds in a special interest-bearing account to the credit of the appropriate endowment for the purposes specified in each case.
(Pub. L. 109–54, title IV, §410, Aug. 2, 2005, 119 Stat. 551.)
Section was enacted as part of the appropriation act cited as the credit to this section, and not as part of the National Foundation on the Arts and the Humanities Act of 1965 which comprises this subchapter.
Provisions similar to those in this section were contained in the following prior appropriation acts:
Pub. L. 108–447, div. E, title III, §310, Dec. 8, 2004, 118 Stat. 3094.
Pub. L. 108–108, title III, §310, Nov. 10, 2003, 117 Stat. 1303.
Pub. L. 108–7, div. F, title III, §310, Feb. 20, 2003, 117 Stat. 271.
Pub. L. 107–63, title III, §315, Nov. 5, 2001, 115 Stat. 467.
Pub. L. 106–291, title III, §318, Oct. 11, 2000, 114 Stat. 989.
Pub. L. 106–113, div. B, §1000(a)(3) [title III, §319], Nov. 29, 1999, 113 Stat. 1535, 1501A–193.
Pub. L. 105–277, div. A, §101(e) [title III, §320], Oct. 21, 1998, 112 Stat. 2681–231, 2681–289.
Pub. L. 105–83, title III, §330, Nov. 14, 1997, 111 Stat. 1600.
(1)(A)(i) For the purpose of carrying out section 954(c) of this title, there are authorized to be appropriated to the National Endowment for the Arts $125,800,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993.
(ii) For fiscal years—
(I) 1991 and 1992 not less than 25 percent of the amount appropriated for the respective fiscal year; and
(II) 1993 not less than 27.5 percent of the amount appropriated for such fiscal year;
shall be for carrying out section 954(g) of this title.
(iii) For fiscal years—
(I) 1991 and 1992 not less than 5 percent of the amount appropriated for the respective fiscal year; and
(II) 1993 not less than 7.5 percent of the amount appropriated for such fiscal year;
shall be for carrying out programs under section 954(p)(2) of this title (relating to programs to expand public access to the arts in rural and innercity areas). Not less than 50 percent of the funds required by this clause to be used for carrying out such programs shall be used for carrying out such programs in rural areas.
(B) For the purpose of carrying out section 956(c) of this title, there are authorized to be appropriated to the National Endowment for the Humanities $119,900,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993. Of the sums so appropriated for any fiscal year, not less than 20 per centum shall be for carrying out section 956(f) of this title.
(2)(A) There are authorized to be appropriated for each fiscal year ending before October 1, 1993, to the National Endowment for the Arts an amount equal to the sum of—
(i) the total amounts received by such Endowment under section 959(a)(2) of this title, including the value of property donated, bequeathed, or devised to such Endowment; and
(ii) the total amounts received by the grantees of such Endowment from non-Federal sources, including the value of property donated, bequeathed, or devised to such grantees, for use in carrying out projects and other activities under paragraph (1) through paragraph (10) of section 954(c) of this title;
except that the amounts so appropriated to the National Endowment for the Arts shall not exceed $13,000,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993.
(B) There are authorized to be appropriated for each fiscal year ending before October 1, 1993, to the National Endowment for the Humanities an amount equal to the sum of—
(i) the total amounts received by such Endowment under section 959(a)(2) of this title, including the value of property donated, bequeathed, or devised to such Endowment; and
(ii) the total amounts received by the grantees and subgrantees of such Endowment from non-Federal sources, including the value of property donated, bequeathed, or devised to such grantees and subgrantees, for use in carrying out activities under paragraph (1) through paragraph (10) of section 956(c) of this title;
except that the amounts so appropriated to the National Endowment for the Humanities shall not exceed $12,000,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993.
(3)(A) There are authorized to be appropriated for each fiscal year ending before October 1, 1993, to the National Endowment for the Arts an amount equal to the sum of—
(i) the total amounts received by such Endowment, including the value of property donated, bequeathed, or devised to such Endowment, for the purposes set forth in section 954(p)(1) of this title pursuant to the authority of section 959(a)(2) of this title; and
(ii) the total amounts received by the grantees of such Endowment from non-Federal sources, including the value of property donated, bequeathed, or devised to such grantees, for use in carrying out activities under subparagraph (A) through subparagraph (F) of section 954(p)(1) of this title;
except that the amounts so appropriated to such Endowment shall not exceed $15,000,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993.
(B) There are authorized to be appropriated for each fiscal year ending before October 1, 1993, to the National Endowment for the Humanities an amount equal to the sum of—
(i) the total amounts received by such Endowment, including the value of property donated, bequeathed, or devised to such Endowment, for the purposes set forth in section 956(h)(1) of this title pursuant to the authority of section 959(a)(2) of this title; and
(ii) the total amounts received by the grantees of such Endowment from non-Federal sources, including the value of property donated, bequeathed, or devised to such grantees, for use in carrying out activities under subparagraph (A) through subparagraph (F) of section 956(h)(1) of this title;
except that the amounts so appropriated to such Endowment shall not exceed $15,150,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993.
(C) Sums appropriated pursuant to subparagraph (A) and subparagraph (B) for any fiscal year shall remain available for obligation and expenditure until expended.
(4) The Chairperson of the National Endowment for the Arts and the Chairperson of the National Endowment for the Humanities, as the case may be, shall issue guidelines to implement the provisions of paragraph (2) and paragraph (3). Such guidelines shall be consistent with the requirements of section 954(e), section 954(l)(2),1 section 956(f), and section 956(h)(2) of this title, as the case may be, regarding total Federal support of activities, programs, projects, or productions carried out under authority of this subchapter.
(1) Sums appropriated pursuant to subsection (a) of this section for any fiscal year shall remain available for obligation and expenditure until expended.
(2) In order to afford adequate notice to interested persons of available assistance under this subchapter, appropriations authorized under subsection (a) of this section are authorized to be included in the measure making appropriations for the fiscal year preceding the fiscal year for which such appropriations become available for obligation.
(1) There are authorized to be appropriated to the National Endowment for the Arts $21,200,000” 2 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993, to administer the provisions of this subchapter, or any other program for which the Chairperson of the National Endowment for the Arts is responsible, including not to exceed $50,000 for each such fiscal year for official reception and representation expenses. The total amount which may be obligated or expended for such expenses for fiscal year 1995 through the use of appropriated funds or any other source of funds shall not exceed $100,000.
(2) There are authorized to be appropriated to the National Endowment for the Humanities $17,950,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993, to administer the provisions of this subchapter, or any other program for which the Chairperson of the National Endowment for the Humanities is responsible, including not to exceed $50,000 for each such fiscal year for official reception and representation expenses. The total amount which may be obligated or expended for such expenses for fiscal year 1995 through the use of appropriated funds or any other source of funds shall not exceed $100,000.
(1) The total amount of appropriations to carry out the activities of the National Endowment for the Arts shall not exceed—
(A) $167,060,000 for fiscal year 1986,
(B) $170,206,400 for fiscal year 1987, and
(C) $177,014,656 for fiscal year 1988.
(2) The total amount of appropriations to carry out the activities for the National Endowment for the Humanities shall not exceed—
(A) $139,878,000 for fiscal year 1986,
(B) $145,057,120 for fiscal year 1987, and
(C) $150,859,405 for fiscal year 1988.
No grant shall be made to a workshop (other than a workshop conducted by a school, college, or university) for a production for which a direct or indirect admission charge is asked if the proceeds, after deducting reasonable costs, are used for purposes other than assisting the grantee to develop high standards of artistic excellence or encourage greater appreciation of the arts and humanities by our citizens.
(1) Subject to subparagraph (2), in any fiscal year in which the aggregate amount appropriated to the National Endowment for the Arts exceeds $175,000,000, 50 percent of such excess shall be available to carry out section 954a of this title.
(2) In each fiscal year, the amount made available to carry out section 954a of this title shall not exceed $40,000,000, in the aggregate.
(3) Funds made available to carry out section 954a of this title shall remain available until expended.
(Pub. L. 89–209, §11, Sept. 29, 1965, 79 Stat. 853; Pub. L. 90–348, §6, June 18, 1968, 82 Stat. 187; Pub. L. 91–346, §§5(a)(4), 12, July 20, 1970, 84 Stat. 444, 446; Pub. L. 93–133, §2(a)(11), Oct. 19, 1973, 87 Stat. 465; Pub. L. 94–462, title I, §106(a), title III, §302, title IV, §401(b), Oct. 8, 1976, 90 Stat. 1974, 1980, 1981; Pub. L. 94–555, title II, §219(b), Oct. 19, 1976, 90 Stat. 2629; Pub. L. 96–496, title I, §108, Dec. 4, 1980, 94 Stat. 2589; renumbered title I, §11, and amended Pub. L. 98–306, §§2, 7, May 31, 1984, 98 Stat. 223, 224; renumbered §11 and amended Pub. L. 99–194, title I, §§101(1), 111, Dec. 20, 1985, 99 Stat. 1332, 1342; Pub. L. 99–362, §1, July 9, 1986, 100 Stat. 769; Pub. L. 101–512, title III, §318 [title I, §§103(i)(2), 110], Nov. 5, 1990, 104 Stat. 1960, 1966, 1972; Pub. L. 103–382, title III, §371, Oct. 20, 1994, 108 Stat. 3977.)
Section 954(l)(2) of this title, referred to in subsec. (a)(4), was redesignated section 954(p)(3) by Pub. L. 101–512, title III, §318 [title I, §§103(g)(1), (h)(1), 104(2)], Nov. 5, 1990, 104 Stat. 1960, 1964, 1965, 1966.
This subchapter, Pub. L. 89–209, Sept. 29, 1965, 79 Stat. 845, consisted originally of additional sections 12, 13, and 14, which were classified to sections 961, 962, and 963 of this title prior to repeal. For further details, see Prior Provisions notes set out under sections 961 to 963 of this title.
1994—Subsec. (c)(1), (2). Pub. L. 103–382 substituted “fiscal year 1995” for “any fiscal year” and “shall not exceed $100,000” for “shall not exceed $50,000”.
1990—Subsec. (a)(1)(A). Pub. L. 101–512, §318 [title I, §110(a)], designated existing provisions as cl. (i), substituted “$125,800,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993” for “$121,678,000 for fiscal year 1986, $123,425,120 for fiscal year 1987, $128,362,125 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990”, struck out at end “Of the sums so appropriated for any fiscal year, not less than 20 per centum shall be for carrying out section 954(g) of this title.”, and added cls. (ii) and (iii).
Subsec. (a)(1)(B). Pub. L. 101–512, §318 [title I, §110(b)], substituted “$119,900,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993” for “$95,207,000 for fiscal year 1986, $99,015,280 for fiscal year 1987, $102,975,891 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990;”.
Subsec. (a)(1)(C). Pub. L. 101–512, §318 [title I, §110(c)], struck out subpar. (C) which related to appropriations for the National Endowment for the Arts for the fiscal year ending September 30, 1977.
Subsec. (a)(2)(A). Pub. L. 101–512, §318 [title I, §110(d)(1)], substituted “1993” for “1990” in introductory provisions and “paragraph (10)” for “paragraph (8)” in cl. (ii), and in closing provisions substituted “$13,000,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993” for “$8,820,000 for fiscal year 1986, $9,172,800 for fiscal year 1987, $9,539,712 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990”.
Subsec. (a)(2)(B). Pub. L. 101–512, §318 [title I, §110(d)(2)], substituted “1993” for “1990” in introductory provisions and “paragraph (10)” for “paragraph (9)” in cl. (ii), and in closing provisions substituted “$12,000,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993” for “$10,780,000 for fiscal year 1986, $11,211,200 for fiscal year 1987, $11,659,648 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990”.
Subsec. (a)(3)(A). Pub. L. 101–512, §318 [title I, §110(d)(3)], in introductory provisions, substituted “1993” for “1990” and in closing provisions, substituted “$15,000,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993” for “$20,580,000 for fiscal year 1986, $21,403,200 for fiscal year 1987, $22,259,328 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990”.
Subsec. (a)(3)(A)(i), (ii). Pub. L. 101–512, §318 [title I, §103(i)(2)(A)(i)], substituted “954(p)(1)” for “954(l)(1)”.
Subsec. (a)(3)(B). Pub. L. 101–512, §318 [title I, §110(d)(4)], in introductory provisions, substituted “1993” for “1990” and in closing provisions, substituted “$15,150,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993” for “$19,600,000 for fiscal year 1986, $20,384,000 for fiscal year 1987, $21,199,360 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990”.
Subsec. (a)(3)(C). Pub. L. 101–512, §318 [title I, §110(e)], redesignated subpar. (D) as (C) and struck out former subpar. (C) which read as follows: “If either Chairperson determines at the end of the ninth month of any fiscal year that funds which would otherwise be available under this paragraph to an Endowment cannot be used, the Chairperson shall transfer such funds to the other Endowment for the purposes described in section 954(p)(1) or section 956(h)(1) of this title, as may be necessary.”
Pub. L. 101–512, §318 [title I, §103(i)(2)(A)(ii)], substituted “954(p)(1)” for “954(l)(1)”.
Subsec. (a)(3)(D). Pub. L. 101–512, §318 [title I, §110(e)(2)], redesignated subpar. (D) as (C).
Subsec. (a)(4). Pub. L. 101–512, §318 [title I, §103(i)(2)(B)], which directed the substitution of “954(p)(1)” for “954(l)(1)”, could not be executed because “954(l)(1)” does not appear in text.
Subsec. (c)(1). Pub. L. 101–512, §110(f)[(1)], substituted “$21,200,000” for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993” for “$15,982,000 for fiscal year 1986, $16,205,280 for fiscal year 1987, $16,853,491 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990” and “$50,000” for “$35,000” wherever appearing.
Subsec. (c)(2). Pub. L. 101–512, §110(f)(2), substituted “$17,950,000 for fiscal year 1991 and such sums as may be necessary for fiscal years 1992 and 1993” for “$14,291,000 for fiscal year 1986, $14,446,640 for fiscal year 1987, $15,024,506 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990” and “$50,000” for “$35,000” wherever appearing.
Subsec. (f). Pub. L. 101–512, §110(g), added subsec. (f).
1986—Subsec. (a)(2)(A)(ii). Pub. L. 99–362, §1(1), substituted “paragraph (8)” for “paragraph (5)”.
Subsec. (a)(2)(B)(ii). Pub. L. 99–362, §1(2), substituted “paragraph (9)” for “paragraph (7)”.
1985—Subsec. (a)(1)(A). Pub. L. 99–194, §111(a)(1), substituted “$121,678,000 for fiscal year 1986, $123,425,120 for fiscal year 1987, $128,362,125 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990” for “$115,500,000 for fiscal year 1981, $127,000,000 for fiscal year 1982, $140,000,000 for fiscal year 1983, $128,500,000 for fiscal year 1984, and such sums as may be necessary for fiscal year 1985”.
Subsec. (a)(1)(B). Pub. L. 99–194, §111(a)(2), substituted “$95,207,000 for fiscal year 1986, $99,015,280 for fiscal year 1987, $102,975,891 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990;” for “$114,500,000 for fiscal year 1981, $126,000,000 for fiscal year 1982, $138,500,000 for fiscal year 1983, $127,000,000 for fiscal year 1984, and such sums as may be necessary for fiscal year 1985”.
Subsec. (a)(2)(A). Pub. L. 99–194, §111(b)(1)(A), substituted “October 1, 1990” for “October 1, 1985” and “$8,820,000 for fiscal year 1986, $9,172,800 for fiscal year 1987, $9,539,712 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990” for “$18,500,000 for fiscal year 1981, $18,500,000 for fiscal year 1982, $18,500,000 for fiscal year 1983, $10,000,000 for fiscal year 1984, and such sums as may be necessary for fiscal year 1985”.
Subsec. (a)(2)(B). Pub. L. 99–194, §111(b)(1)(B), substituted “October 1, 1990” for “October 1, 1985” in provisions preceding cl. (i), substituted “grantees and subgrantees” for “grantees” in two places in cl. (ii), and in provisions following cl. (ii) substituted “$10,780,000 for fiscal year 1986, $11,211,200 for fiscal year 1987, $11,659,648 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990” for “$12,500,000 for fiscal year 1981, $14,000,000 for fiscal year 1982, $15,000,000 for fiscal year 1983, $11,500,000 for fiscal year 1984, and such sums as may be necessary for fiscal year 1985”.
Subsec. (a)(3)(A). Pub. L. 99–194, §111(b)(2)(A), substituted “October 1, 1990” for “October 1, 1985” and “$20,580,000 for fiscal year 1986, $21,403,200 for fiscal year 1987, $22,259,328 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990” for “$27,000,000 for fiscal year 1981, $30,000,000 for fiscal year 1982, $32,500,000 for fiscal year 1983, $28,000,000 for fiscal year 1984, and such sums as may be necessary for fiscal year 1985”.
Subsec. (a)(3)(B). Pub. L. 99–194, §111(b)(2)(B), substituted “October 1, 1990” for “October 1, 1985” and “$19,600,000 for fiscal year 1986, $20,384,000 for fiscal year 1987, $21,199,360 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990” for “$30,000,000 for fiscal year 1981, $33,000,000 for fiscal year 1982, $36,000,000 for fiscal year 1983, $20,000,000 for fiscal year 1984, and such sums as may be necessary for fiscal year 1985”.
Subsec. (a)(3)(C). Pub. L. 99–194, §111(b)(2)(C), substituted “either Chairperson” for “either Chairman” and “the Chairperson” for “he”.
Subsec. (a)(4). Pub. L. 99–194, §111(b)(3), substituted “Chairperson” for “Chairman” wherever appearing.
Subsec. (c)(1). Pub. L. 99–194, §111(c)(1), (3), substituted “$15,982,000 for fiscal year 1986, $16,205,280 for fiscal year 1987, $16,853,491 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990” for “$14,000,000 for fiscal year 1981, $15,000,000 for fiscal year 1982, $16,000,000 for fiscal year 1983, $17,000,000 for fiscal year 1984, and $18,000,000 for fiscal year 1985” and “Chairperson” for “Chairman”.
Subsec. (c)(2). Pub. L. 99–194, §111(c)(2), (3), substituted “$14,291,000 for fiscal year 1986, $14,446,640 for fiscal year 1987, $15,024,506 for fiscal year 1988, and such sums as may be necessary for each of the fiscal years 1989 and 1990” for “$13,000,000 for fiscal year 1981, $14,500,000 for fiscal year 1982, $15,500,000 for fiscal year 1983, $16,500,000 for fiscal year 1984, and $17,500,000 for fiscal year 1985” and “Chairperson” for “Chairman”.
Subsecs. (d), (e). Pub. L. 99–194, §111(d), added subsec. (d), redesignated former subsec. (d) as (e), and struck out “under this subchapter” after “No grant shall be made”.
1984—Subsec. (a)(1)(A). Pub. L. 98–306, §7(a)(1)(A), substituted “$128,500,000 for fiscal year 1984, and such sums as may be necessary” for “$154,000,000 for fiscal year 1984, and $170,000,000”.
Subsec. (a)(1)(B). Pub. L. 98–306, §7(a)(1)(B), substituted “$127,000,000 for fiscal year 1984, and such sums as may be necessary” for “$152,000,000 for fiscal year 1984, and $167,500,000”.
Subsec. (a)(2)(A). Pub. L. 98–306, §7(a)(2)(A), substituted “$10,000,000 for fiscal year 1984, and such sums as may be necessary” for “$20,000,000 for fiscal year 1984, and $22,500,000”.
Subsec. (a)(2)(B). Pub. L. 98–306, §7(a)(2)(B), substituted “$11,500,000 for fiscal year 1984, and such sums as may be necessary” for “$16,500,000 for fiscal year 1984, and $18,500,000”.
Subsec. (a)(3)(A). Pub. L. 98–306, §7(a)(3)(A), substituted “$28,000,000 for fiscal year 1984, and such sums as may be necessary” for “$36,000,000 for fiscal year 1984, and $40,000,000”.
Subsec. (a)(3)(B). Pub. L. 98–306, §7(a)(3)(B), substituted “$20,000,000 for fiscal year 1984, and such sums as may be necessary” for “$40,000,000 for fiscal year 1984, and $44,000,000”.
Subsec. (d). Pub. L. 98–306, §7(b), inserted “under this subchapter”.
1980—Subsec. (a)(1)(A). Pub. L. 96–496, §108(a), substituted “to the National Endowment for the Arts $115,500,000 for fiscal year 1981, $127,000,000 for fiscal year 1982, $140,000,000 for fiscal year 1983, $154,000,000 for fiscal year 1984, and $170,000,000 for fiscal year 1985” for “$93,500,000 for fiscal year 1977, $105,000,000 for fiscal year 1978, and such sums as may be necessary for fiscal years 1979 and 1980”.
Subsec. (a)(1)(B). Pub. L. 96–496, §108(b), substituted “$114,500,000 for fiscal year 1981, $126,000,000 for fiscal year 1982, $138,500,000 for fiscal year 1983, $152,000,000 for fiscal year 1984, and $167,500,000 for fiscal year 1985” for “$93,500,000 for fiscal year 1977, $105,000,000 for fiscal year 1978, and such sums as may be necessary for fiscal years 1979 and 1980”.
Subsec. (a)(2). Pub. L. 96–496, §108(c), substituted provisions authorizing appropriations for each fiscal year ending before Oct. 1, 1985, for the National Endowments for the Arts and for the Humanities for provisions authorizing appropriations for such endowments for each fiscal year ending prior to Oct. 1, 1980.
Subsec. (a)(3)(A). Pub. L. 96–496, §108(d), substituted provisions authorizing appropriations for each fiscal year ending before Oct. 1, 1985, for the National Endowment for the Arts for provisions authorizing appropriations for such endowment for fiscal years ending before Oct. 1, 1980.
Subsec. (a)(3)(B). Pub. L. 96–496, §108(e), substituted provisions authorizing appropriations for each fiscal year ending before Oct. 1, 1985, for the National Endowment for the Humanities for provisions authorizing appropriations for such endowment for fiscal years ending before Oct. 1, 1980.
Subsec. (a)(4). Pub. L. 96–496, §108(f), substituted provisions authorizing the Chairmen of the National Endowments for the Arts and for the Humanities to issue guidelines for the implementation of the provisions of pars. (2) and (3) of this subsection for provisions authorizing and allocating appropriations for the National Endowment for the Arts for the purpose of carrying out subsec. (m) of section 954 of this title.
Subsec. (c). Pub. L. 96–496, §108(g), substituted provisions authorizing specific appropriations for administrative expenses of the National Endowments for the Arts and for the Humanities for fiscal years 1981 to 1985 for provisions authorizing appropriations for administrative expenses of such endowments of such sums as were necessary.
1976—Subsec. (a)(1)(A). Pub. L. 94–462, §106(a)(1)(A), substituted provisions authorizing appropriations of $93,500,000 for fiscal year 1977, $105,000,000 for fiscal year 1978, and such sums as are necessary for fiscal years 1979 and 1980 to carry out section 954(c) of this title and such sums so appropriated for any fiscal year, not less than 20 per centum to carry out section 954(g) of this title for provisions authorizing appropriations of $54,000,000, $90,000,000, and $113,500,000 for the fiscal years ending June 30, 1974, June 30, 1975, and June 30, 1976, respectively, to the National Endowment for the Arts to carry out section 954(c) of this title and to carry out section 954(g) of this title $11,000,000 for the fiscal year ending June 30, 1974 and requiring that not less than 20 per centum of funds appropriated for section 954(c) of this title may be used only for purpose of section 954(g) of this title for fiscal years ending June 30, 1975 and June 30, 1976.
Subsec. (a)(1)(B). Pub. L. 94–462, §106(a)(1)(B), substituted provisions authorizing appropriations of $93,500,000 for fiscal year 1977, $105,000,000 for fiscal year 1978, and such sums as may be necessary for fiscal years 1979 and 1980, not less than 20 per centum of such appropriated funds shall be to carry out section 956(f) of this title for provisions authorizing appropriations of $65,000,000 for the fiscal year ending June 30, 1974, $90,000,000 for the fiscal year ending June 30, 1975, and $113,500,000 for the fiscal year ending June 30, 1976.
Subsec. (a)(1)(C). Pub. L. 94–555 added subpar. (C).
Subsec. (a)(2). Pub. L. 94–462, §106(a)(2), substituted “October 1, 1980” for “July 1, 1976” and provisions authorizing appropriations not to exceed $20,000,000 for fiscal year 1977, $25,000,000 for fiscal year 1978, and such sums as may be necessary for fiscal years 1979 and 1980 for provisions authorizing appropriations not to exceed $15,000,000 for fiscal year ending June 30, 1974, $20,000,000 for fiscal year ending June 30, 1975, and $25,000,000 for fiscal year ending June 30, 1976.
Subsec. (a)(3), (4). Pub. L. 94–462, §§302, 401(b), added pars. (3) and (4).
Subsec. (c). Pub. L. 94–462, §106(a)(3), inserted reference to any program for which the Chairman of the National Endowment for the Arts or the Chairman of the National Endowment for the Humanities is responsible.
1973—Subsec. (a)(1). Pub. L. 93–133 incorporated into subpar. (A) provisions relating to the authorization of appropriation for carrying out section 954(c) of this title, substituted authorization of appropriation for fiscal years ending June 30, 1974, 1975, 1976 for such authorization for fiscal years 1969 through 1973, and inserted provisions for authorization of appropriation for carrying out section 954(g) of this title, and, in subpar. (B), incorporated provisions of former subsec. (a) relating to authorization of appropriation for carrying out section 956(c) of this title, and substituted authorization of appropriation for fiscal years ending June 30, 1974, 1975, and 1976, for such authorization for 1969 through 1973.
Subsec. (a)(2). Pub. L. 93–133 incorporated provisions of former subsec. (b) relating to matching grants and substituted new limitations for fiscal years ending June 30, 1974, 1975, and 1976 for such limitations for 1969 through 1973.
Subsec. (b)(1). Pub. L. 93–133 incorporated provisions formerly contained in subsecs. (a) and (b) relating to the availability of unexpended appropriated funds.
Subsec. (b)(2). Pub. L. 93–133 added par. (2).
1970—Subsec. (a). Pub. L. 91–346, §§5(a)(4), 12(a), struck out reference to the functions transferred by section 955(a) of this title, added appropriations to the National Endowment for the Arts of $12,875,000, $21,000,000, and $28,625,000 for the fiscal years ending June 30, 1971, 1972, and 1973, respectively, for the purpose of carrying out section 954(c) of this title, and $4,125,000, $5,500,000, and $6,875,000 for the fiscal years ending June 30, 1971, 1972, and 1973, respectively, for the purposes of section 954(h) of this title, and further appropriated to the National Endowment for the Humanities $17,000,000, $26,500,000, $35,500,000 for the fiscal years ending June 30, 1971, 1972, and 1973, respectively, for the purpose of carrying out section 956(c) of this title.
Subsec. (b). Pub. L. 91–346, §12(b), placed limitation on appropriation to each Endowment based on an amount equal to the total of amounts received by each Endowment under section 959(a)(2) of this title by placing ceilings of $6,000,000, $7,000,000, and $9,000,000 on the amounts appropriated for the fiscal years ending June 30, 1971, 1972, and 1973, respectively.
1968—Subsec. (a). Pub. L. 90–348, §6(a), substituted provisions which authorized for the enumerated purposes appropriations totaling $8,000,000 for the fiscal year ending June 30, 1969, and $9,000,000 for the fiscal year ending June 30, 1970 to both the National Endowment for the Arts and the National Endowment for the Humanities, and which authorized the Congress to appropriate funds for subsequent fiscal years for provisions which authorized for grants to groups and individuals for projects and productions, for grants for activities authorized by the Chairman of the National Endowment for the Humanities, and for the functions of the National Council on the Arts in the National Endowment for the Arts appropriations of $10,000,000 for the fiscal year ending June 30, 1966, and each of the two succeeding fiscal years, and that the funds appropriated be equally divided between the Endowments of the Foundation.
Subsec. (b). Pub. L. 90–348, §6(b), substituted provisions authorizing appropriations not to exceed $13,500,000 for the fiscal years ending June 30, 1969, and June 30, 1970, and authorizing the Congress to appropriate funds for subsequent fiscal years for provisions authorizing appropriations for the National Endowment for the Arts not to exceed $2,250,000 for any fiscal year, and authorizing appropriations for the National Endowment for the Humanities not to exceed $5,000,000 for any fiscal year.
Subsecs. (c) to (e). Pub. L. 90–348, §6(c), (d), struck out subsec. (c) which authorized appropriations for the National Endowment for the Arts for each fiscal year, beginning with the fiscal year beginning on July 1, 1966, of $2,750,000, and redesignated subsecs. (d) and (e) as (c) and (d), respectively.
Amendment by Pub. L. 101–512 effective Oct. 1, 1990, see section 318 [title IV, §403] of Pub. L. 101–512, set out as a note under section 951 of this title.
Amendment by Pub. L. 94–555 effective Oct. 1, 1976, see section 303 of Pub. L. 94–555, set out as a note under section 702 of Title 45, Railroads.
Section 106(b) of Pub. L. 94–462 provided that: “The amendments made by subsection (a) [amending this section] shall be effective with respect to fiscal year 1977 and succeeding fiscal years.”
Amendment by Pub. L. 93–133 effective on and after July 1, 1973, see section 2(b) of Pub. L. 93–133, set out as a note under section 951 of this title.
Amendment by section 5(a)(4) of Pub. L. 91–346 effective after June 30, 1970, see section 5(d)(3)(A) of Pub. L. 91–346, set out as a note under section 955 of this title.
1 See References in Text note below.
2 So in original. The closing quotation marks probably should not appear.
The Museum Services Act (Pub. L. 94–462, title II, Oct. 8, 1976, 90 Stat. 1975, as amended), which was classified to this subchapter (§§961 to 963 and 964 to 969), was amended generally by Pub. L. 104–208, div. A, title I, §101(e) [title VII, §702], Sept. 30, 1996, 110 Stat. 3009–233, 3009–293, and transferred to chapter 72 (§9101 et seq.) of this title.
Section 961, Pub. L. 94–462, title II, §202, Oct. 8, 1976, 90 Stat. 1975, related to declaration of purpose of this subchapter.
A prior section 961, Pub. L. 89–209, §12, Sept. 29, 1965, 79 Stat. 854; Pub. L. 90–575, title V, §501, Oct. 16, 1968, 82 Stat. 1061, related to State educational agencies’ acquisition of equipment, remodeling of laboratories, and making loans to strengthen instruction in the humanities and the arts, providing in: subsec. (a) appropriations authorization; subsec. (b) reservation, allotment and reallotment of funds as provided in section 442(a) and (c) of this title; subsec. (c) State plan, submission, requirements, terms and conditions; subsec. (d) approval of State plan by Commissioner, application of section 584(b) and (c) of this title; subsec. (e) payments to States as provided in section 444 of this title; and subsec. (f) administration of loans to schools as provided in section 445 of this title, prior to repeal by Pub. L. 91–230, title VIII, §807(b), Apr. 13, 1970, 84 Stat. 192.
Section 962, Pub. L. 94–462, title II, §203, Oct. 8, 1976, 90 Stat. 1975; Pub. L. 96–496, title II, §201(a), Dec. 4, 1980, 94 Stat. 2591; Pub. L. 98–306, §8, May 31, 1984, 98 Stat. 225, related to establishment of Institute of Museum Services, within National Foundation on Arts and Humanities, consisting of National Museum Services Board and Director of Institute. See sections 9102 and 9103 of this title.
A prior section 962, Pub. L. 89–209, §13, Sept. 29, 1965, 79 Stat. 855, provided for appropriation to Commissioner of Education of funds for grants and contracts for operation of institutes to strengthen teaching of humanities and the arts, prior to repeal by Pub. L. 93–133, §2(a)(12), Oct. 19, 1973, 87 Stat. 465.
Section 963, Pub. L. 94–462, title II, §204, Oct. 8, 1976, 90 Stat. 1975; Pub. L. 96–496, title II, §201(b), Dec. 4, 1980, 94 Stat. 2592; Pub. L. 98–306, §9, May 31, 1984, 98 Stat. 225; Pub. L. 99–194, title II, §201, Dec. 20, 1985, 99 Stat. 1344; Pub. L. 101–512, title III, §318 [title II, §201], Nov. 5, 1990, 104 Stat. 1960, 1974, related to membership, meetings, and functions of National Museum Service Board, and appointment and compensation of Board members.
A prior section 963, Pub. L. 89–209, §14, Sept. 29, 1965, 79 Stat. 855, requested President to make appointments within ninety days after Sept. 29, 1965, prior to repeal by Pub. L. 93–133, §2(a)(12), Oct. 19, 1973, 87 Stat. 465.
Section 963a, Pub. L. 98–146, title II, Nov. 4, 1983, 97 Stat. 949, which directed that persons serving on Museum Services Board continue until their successors are qualified for office, was omitted as superseded by former section 963(b) of this title as amended by Pub. L. 98–306. Similar provisions were contained in Pub. L. 97–394, title II, Dec. 30, 1982, 96 Stat. 1994.
Section 964, Pub. L. 94–462, title II, §205, Oct. 8, 1976, 90 Stat. 1976; Pub. L. 96–496, title II, §201(c), Dec. 4, 1980, 94 Stat. 2592; Pub. L. 98–306, §10, May 31, 1984, 98 Stat. 225; Pub. L. 99–194, title II, §202, Dec. 20, 1985, 99 Stat. 1344; Pub. L. 101–512, title III, §318 [title II, §202(a)(1), (b)], Nov. 5, 1990, 104 Stat. 1960, 1974, 1975, related to appointment, compensation, and functions of Director of Institute. See section 9103 of this title.
Section 965, Pub. L. 94–462, title II, §206, Oct. 8, 1976, 90 Stat. 1977; Pub. L. 96–496, title II, §201(d), Dec. 4, 1980, 94 Stat. 2592; Pub. L. 101–512, title III, §318 [title II, §203], Nov. 5, 1990, 104 Stat. 1960, 1975, authorized Director, subject to policy direction of Board, to make grants to museums to increase and improve services through specified activities. See section 9173 of this title.
Section 966, Pub. L. 94–462, title II, §207, Oct. 8, 1976, 90 Stat. 1977, related to authority of Institute to accept contributions. See section 9106 of this title.
Section 967, Pub. L. 94–462, title II, §209, Oct. 8, 1976, 90 Stat. 1978; Pub. L. 96–496, title I, §201(e), Dec. 4, 1980, 94 Stat. 2593; Pub. L. 98–306, §11, May 31, 1984, 98 Stat. 225; Pub. L. 99–194, title II, §203, Dec. 20, 1985, 99 Stat. 1344; Pub. L. 101–512, title III, §318 [title II, §§204, 205(b)], Nov. 5, 1990, 104 Stat. 1960, 1975, 1976, authorized appropriations for purpose of making grants under section 965(a) of this title and for administering provisions of this subchapter. See section 9176 of this title.
Section 968, Pub. L. 94–462, title II, §210, Oct. 8, 1976, 90 Stat. 1978, defined “Board”, “Director”, “Institute”, and “museum” for purposes of this subchapter. See sections 9101 and 9172 of this title.
Section 969, Pub. L. 94–462, title II, §211, as added Pub. L. 101–512, title III, §318 [title II, §205 [(a)]], Nov. 5, 1990, 104 Stat. 1960, 1975, related to assessment of needs of small, emerging, minority, and rural museums.
Section 201 of title II of Pub. L. 94–462, which provided that title II of Pub. L. 94–462, which enacted this subchapter and amended section 958 of this title, could be cited as the “Museum Services Act”, was omitted in the general amendment of title II by Pub. L. 104–208. See chapter 72 (§9101 et seq.) of this title.
The Federal Council on the Arts and Humanities (hereinafter in this chapter referred to as the “Council”), established under section 958 of this title, is authorized to make agreements to indemnify against loss or damage such items as may be eligible for such indemnity agreements under section 972 of this title—
(1) in accordance with the provisions of this chapter; and
(2) on such terms and conditions as the Council shall prescribe, by regulation, in order to achieve the purposes of this chapter and, consistent with such purposes, to protect the financial interest of the United States.
(1) For purposes of this chapter, the Council shall be an “agency” within the meaning of the appropriate definitions of such term in title 5.
(2) For purposes of this chapter, the Secretary of the Smithsonian Institution, the Director of the National Gallery of Art, the member designated by the Chairman of the Senate Commission of Art and Antiquities and the member designated by the Speaker of the House of Representatives shall not serve as members of the Council.
(Pub. L. 94–158, §2, Dec. 20, 1975, 89 Stat. 844; Pub. L. 99–194, title III, §301, Dec. 20, 1985, 99 Stat. 1345.)
1985—Subsec. (b). Pub. L. 99–194 designated existing provisions as par. (1) and added par. (2).
Section 9 of Pub. L. 94–158 provided that: “This Act [see Short Title note below] shall become effective 30 days after the date of the enactment of this Act [Dec. 20, 1975].”
Section 1 of Pub. L. 94–158 provided that: “This Act [enacting this chapter and provisions set out as a note under this section] may be cited as the ‘Arts and Artifacts Indemnity Act’.”
The Council may make an indemnity agreement under this chapter with respect to—
(1) works of art, including tapestries, paintings, sculpture, folk art, graphics, and craft arts;
(2) manuscripts, rare documents, books, and other printed or published materials;
(3) other artifacts or objects; and
(4) photographs, motion pictures, or audio and video tape;
which are (A) of educational, cultural, historical, or scientific value, and (B) in the case of international exhibitions, certified by the Secretary of State or his designee as being in the national interest.
(1) An indemnity agreement made under this chapter shall cover eligible items while on exhibition in the United States or elsewhere preferably when part of an exchange of exhibitions.
(2) For purposes of this subsection, the term “on exhibition” includes that period of time beginning on the date the eligible items leave the premises of the lender or place designated by the lender and ending on the date such items are returned to the premises of the lender or place designated by the lender.
(Pub. L. 94–158, §3, Dec. 20, 1975, 89 Stat. 844; Pub. L. 99–194, title III, §302(a), Dec. 20, 1985, 99 Stat. 1345; Pub. L. 110–161, div. F, title IV, §426(1), Dec. 26, 2007, 121 Stat. 2151.)
2007—Subsec. (a). Pub. L. 110–161 substituted “(B) in the case of international exhibitions,” for “(B) the exhibition of which is” in concluding provisions.
1985—Subsec. (b)(1). Pub. L. 99–194, which directed the substitution of “or elsewhere preferably when part of an exchange of exhibitions” for “, or elsewhere when part of an exchange of exhibitions, but in no case shall both parts of such an exhibition be so covered” was executed by making the substitution for “, or elsewhere when part of an exchange of exhibitions, but in no case shall both parts of such an exchange be so covered”, to reflect the probable intent of Congress.
Section 302(b) of Pub. L. 99–194 provided that: “The amendment made by paragraph (1) [amending this section] shall apply with respect to any exhibition which is certified under section 3(a) of the Arts and Artifacts Indemnity Act [subsec. (a) of this section] after the date of enactment of this Act [Dec. 20, 1985].”
Any person, nonprofit agency, institution, or government desiring to make an indemnity agreement for eligible items under this chapter shall make application therefor in accordance with such procedures, in such form, and in such manner as the Council shall, by regulation, prescribe.
An application under subsection (a) of this section shall—
(1) describe each item to be covered by the agreement (including an estimated value of such item);
(2) show evidence that the items are eligible under section 972(a) of this title; and
(3) set forth policies, procedures, techniques, and methods with respect to preparation for, and conduct of, exhibition of the items, and any transportation related to such items.
Upon receipt of an application under this section, the Council shall, if such application conforms with the requirements of this chapter, approve the application and make an indemnity agreement with the applicant. Upon such approval, the agreement shall constitute a contract between the Council and the applicant pledging the full faith and credit of the United States to pay any amount for which the Council becomes liable under such agreement. The Council, for such purpose, is hereby authorized to pledge the full faith and credit of the United States.
(Pub. L. 94–158, §4, Dec. 20, 1975, 89 Stat. 845.)
Upon receipt of an application meeting the requirements of subsections (a) and (b) of section 973 of this title, the Council shall review the estimated value of the items for which coverage by an indemnity agreement is sought. If the Council agrees with such estimated value, for the purposes of this chapter, the Council shall, after approval of the application as provided in subsection (c) of section 973 of this title, make an indemnity agreement.
The aggregate of loss or damage covered by indemnity agreements made under this chapter shall not exceed $10,000,000,000 at any one time for international exhibitions, and $5,000,000,000 at any one time for domestic exhibitions.
No indemnity agreement for a single exhibition shall cover loss or damage in excess of $1,200,000,000 for international exhibitions, or $750,000,000 for domestic exhibitions.
If the estimated value of the items covered by an indemnity agreement for a single exhibition is—
(1) $2,000,000 or less, then coverage under this chapter shall extend only to loss or damage in excess of the first $15,000 of loss or damage to items covered;
(2) more than $2,000,000 but less than $10,000,000 then coverage under this chapter shall extend only to loss or damage in excess of the first $25,000 of loss or damage to items covered;
(3) not less than $10,000,000 but less than $125,000,000, then coverage under this chapter shall extend to loss or damage in excess of the first $50,000 of loss or damage to items covered;
(4) not less than $125,000,000 but less than $200,000,1 then coverage under this chapter shall extend to loss or damage in excess of the first $100,000 of loss or damage to items covered;
(5) not less than $200,000,000 but less than $300,000,000, then coverage under the 2 chapter shall extend only to loss or damage in excess of the first $200,000, of loss or damage to items covered;
(6) not less than $300,000,000 but less than $400,000,000, then coverage under this chapter shall extend only to loss or damage in excess of the first $300,000 of loss or damage to items covered;
(7) not less than $400,000,000 but less than $500,000,000, then coverage under this chapter shall extend only to loss or damage in excess of the first $400,000 of loss or damage to items covered; or
(8) $500,000,000 or more, then coverage under this chapter shall extend only to loss or damage in excess of the first $500,000 of loss or damage to items covered.
(Pub. L. 94–158, §5, Dec. 20, 1975, 89 Stat. 845; Pub. L. 96–496, title III, §§301, 302, Dec. 4, 1980, 94 Stat. 2593; Pub. L. 99–194, title III, §303, Dec. 20, 1985, 99 Stat. 1345; Pub. L. 100–202, §101(g) [title II, §201], Dec. 22, 1987, 101 Stat. 1329–213, 1329–249; Pub. L. 101–512, title III, §318 [title III, §301], Nov. 5, 1990, 104 Stat. 1960, 1976; Pub. L. 105–277, div. A, §101(e) [title III, §333], Oct. 21, 1998, 112 Stat. 2681–231, 2681–294; Pub. L. 108–81, title V, §501, Sept. 25, 2003, 117 Stat. 1003; Pub. L. 109–54, title IV, §427, Aug. 2, 2005, 119 Stat. 555; Pub. L. 110–161, div. F, title IV, §426(2), (3), Dec. 26, 2007, 121 Stat. 2151.)
2007—Subsec. (b). Pub. L. 110–161, §426(2), inserted “for international exhibitions, and $5,000,000,000 at any one time for domestic exhibitions” before period at end.
Subsec. (c). Pub. L. 110–161, §426(3), inserted “for international exhibitions, or $750,000,000 for domestic exhibitions” before period at end.
2005—Subsec. (b). Pub. L. 109–54, §427(1), substituted “$10,000,000,000” for “8,000,000,000”.
Subsec. (c). Pub. L. 109–54, §427(2), substituted “$1,200,000,000” for “$600,000,000”.
2003—Subsec. (b). Pub. L. 108–81, §501(1), substituted “$8,000,000,000” for “$5,000,000,000”.
Subsec. (c). Pub. L. 108–81, §501(2), substituted “$600,000,000” for “$500,000,000”.
Subsec. (d)(7), (8). Pub. L. 108–81, §501(3), added pars. (7) and (8) and struck out former par. (7) which read as follows: “$400,000,000 or more, then coverage under this chapter shall extend only to loss or damage in excess of the first $400,000 of loss or damage to items covered.”
1998—Subsec. (b). Pub. L. 105–277, §101(e) [title III, §333(1)], substituted “$5,000,000,000” for “$3,000,000,000”.
Subsec. (c). Pub. L. 105–277, §101(e) [title III, §333(2)], substituted “$500,000,000” for “$300,000,000”.
Subsec. (d)(4). Pub. L. 105–277, §101(e) [title III, §333(3)], struck out “or” at end.
Subsec. (d)(5). Pub. L. 105–277, §101(e) [title III, §333(4)], substituted “not less than $200,000,000 but less than $300,000,000” for “$200,000,000 or more” and substituted semicolon for period at end.
Subsec. (d)(6), (7). Pub. L. 105–277, §101(e) [title III, §333(5)], added pars. (6) and (7).
1990—Subsec. (b). Pub. L. 101–512, §318 [title III, §301(a)], substituted “$3,000,000,000” for “$1,200,000,000”.
Subsec. (c). Pub. L. 101–512, §318 [title III, §301(b)(1)], substituted “$300,000,000” for “$125,000,000”.
Subsec. (d)(3). Pub. L. 101–512, §318 [title III, §301(b)(2)(B)], amended par. (3) generally. Prior to amendment, par. (3) read as follows: “$10,000,000 or more, then coverage under this chapter shall extend only to loss or damage in excess of the first $50,000 of loss or damage to items covered.”
Subsec. (d)(4), (5). Pub. L. 101–512, §318 [title III, §301(b)(2)(A), (C)], added pars. (4) and (5).
1987—Subsec. (b). Pub. L. 100–202 substituted “$1,200,000,000” for “$650,000,000”.
Subsec. (c). Pub. L. 100–202 substituted “$125,000,000” for “$75,000,000”.
1985—Subsec. (b). Pub. L. 99–194, §303(a), substituted “$650,000,000” for “$400,000,000”.
Subsec. (c). Pub. L. 99–194, §303(b), substituted “$75,000,000” for “$50,000,000”.
1980—Subsec. (b). Pub. L. 96–496, §301, substituted “$400,000,000” for “$250,000,000”.
Subsec. (d). Pub. L. 96–496, §302, substituted provisions relating to deductible amounts under indemnity agreements for provisions limiting coverage under this chapter to loss or damage in excess of the first $15,000 resulting from a single exhibition.
Amendment by Pub. L. 101–512 effective Oct. 1, 1990, see section 318 [title IV, §403(b)] of Pub. L. 101–512, set out as a note under section 951 of this title.
1 So in original. Probably should be “$200,000,000,”.
2 So in original. Probably should be “this”.
The Council shall prescribe regulations providing for prompt adjustment of valid claims for losses which are covered by an agreement made pursuant to section 974 of this title, including provision for arbitration of issues relating to the dollar value of damages involving less than total loss or destruction of such covered objects.
In the case of a claim of loss with respect to an item which is covered by an agreement made pursuant to section 974 of this title, the Council shall certify the validity of the claim and the amount of the loss to the Speaker of the House of Representatives and the President pro tempore of the Senate.
(Pub. L. 94–158, §6, Dec. 20, 1975, 89 Stat. 845.)
There are hereby authorized to be appropriated such sums as may be necessary (1) to enable the Council to carry out its functions under this chapter, and (2) to pay claims certified pursuant to section 975(b) of this title.
(Pub. L. 94–158, §7, Dec. 20, 1975, 89 Stat. 846.)
Section, Pub. L. 94–158, §8, Dec. 20, 1975, 89 Stat. 846, which required the Federal Council on the Arts and Humanities to report annually to Congress on claims actually paid and pending claims against the Council under this chapter and the aggregate face value of contracts made by the Council which are outstanding, 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 167 of House Document No. 103–7.
Section 981, Pub. L. 89–287, §2, Oct. 22, 1965, 79 Stat. 1037; Pub. L. 90–460, §2(d)(3), Aug. 3, 1968, 82 Stat. 634, set forth Congressional declaration of purpose for the chapter and authorized appropriations to carry out such purpose.
Section 981 note, Pub. L. 89–287, §1, Oct. 22, 1965, 79 Stat. 1037, provided that Pub. L. 89–287, which enacted this chapter, be cited as the National Vocational Loan Insurance Act of 1965.
Section 982, Pub. L. 89–287, §3, Oct. 22, 1965, 79 Stat. 1037, authorized Commissioner to make advances to State and nonprofit private loan insurance programs.
Section 983, Pub. L. 89–287, §4, Oct. 22, 1965, 79 Stat. 1038, prohibited Commissioner from issuing certificates of insurance to lenders in States having adequate non-Federal loan insurance programs.
Section 984, Pub. L. 89–287, §5, Oct. 22, 1965, 79 Stat. 1038; Pub. L. 90–460, §1(b)(1), Aug. 3, 1968, 82 Stat. 634, set forth scope and duration of loan insurance program of this chapter.
Section 985, Pub. L. 89–287, §6, Oct. 22, 1965, 79 Stat. 1039, limited annual and aggregate amounts available to individuals as loans and covered by insurance under this chapter.
Section 986, Pub. L. 89–287, §7, Oct. 22, 1965, 79 Stat. 1039, provided for insurance coverage for loans made by eligible lenders, regardless of source of such loaned funds.
Section 987, Pub. L. 89–287, §8, Oct. 22, 1965, 79 Stat. 1039; Pub. L. 90–460, §2(c)(1), Aug. 3, 1968, 82 Stat. 634, set forth prerequisites of student eligibility and terms and conditions of note executed by student.
Section 988, Pub. L. 89–287, §9, Oct. 22, 1965, 79 Stat. 1041; Pub. L. 90–460, §§1(b)(2), 2(c)(2), (d), Aug. 3, 1968, 82 Stat. 634, provided for reduction of student interest costs by Federal payments.
Section 989, Pub. L. 89–287, §10, Oct. 22, 1965, 79 Stat. 1043, Pub. L. 90–460, §1(b)(3), Aug. 3, 1968, 82 Stat. 634, authorized Commissioner to make direct loans to students residing in areas where loans insurable under this chapter are unavailable.
Section 990, Pub. L. 89–287, §11, Oct. 22, 1965, 79 Stat. 1043, provided for certificates of insurance to be issued to eligible lenders.
Section 991, Pub. L. 89–287, §12, Oct. 22, 1965, 79 Stat. 1045, set forth procedure for collection in case of default, death, or disability of student borrower.
Section 992, Pub. L. 89–287, §13, Oct. 22, 1965, 79 Stat. 1046, established Vocational Student Loan Insurance Fund.
Section 993, Pub. L. 89–287, §14, Oct. 22, 1965, 79 Stat. 1047, enumerated powers and duties of Commissioner with respect to carrying out purposes of this chapter.
Section 994, Pub. L. 89–287, §15, Oct. 22, 1965, 79 Stat. 1048, established Advisory Council on Insured Loans to Vocational Students in the Office of Education.
Section 995, Pub. L. 89–287, §16, Oct. 22, 1965, 79 Stat. 1048, authorized Federal credit unions to make insured loans to student members.
Section 996, Pub. L. 89–287, §17, Oct. 22, 1965, 79 Stat. 1048, defined “eligible institution”, “eligible lender”, “line of credit”, “State”, “Secretary”, and “Commissioner”.
Repeal applicable to loans made on or after the 60th day after Oct. 16, 1968, see section 116(e) of Pub. L. 90–575.
Section 116(c)(2) of Pub. L. 90–575 provided that: “All assets and liabilities of the vocational student loan insurance fund established by section 13 of the National Vocational Student Loan Insurance Act of 1965 [section 992 of this title], matured or contingent, shall be transferred to, and become assets and liabilities of, the student loan insurance fund established by section 431 of the Higher Education Act of 1965 [section 1081 of this title]. Payments in connection with defaults of loans made on or after the sixtieth day after the date of enactment of this Act [Oct. 16, 1968] and insured by the Commissioner (under the authority of subsection (e)(3) or (e)(4) of this section [set out as a note under section 1083 of this title]) under the National Vocational Student Loan Insurance Act of 1965 [sections 981 to 996 of this title] shall be paid out of the fund established by such section 431.”
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, §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.
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, or persons who meet the requirements of section 1091(d) of this title;
(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, or awards a degree that is acceptable for admission to a graduate or professional degree program, subject to review and approval by the Secretary;
(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.
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), admits as regular students individuals—
(A) who are beyond the age of compulsory school attendance in the State in which the institution is located; or
(B) who will be dually or concurrently enrolled in the institution and a secondary school.
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.
(Pub. L. 89–329, title I, §101, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1585; amended Pub. L. 110–315, title I, §101(a), Aug. 14, 2008, 122 Stat. 3083; Pub. L. 112–74, div. F, title III, §309(c)(3), Dec. 23, 2011, 125 Stat. 1101.)
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, §101, as added Pub. L. 102–325, title I, §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, §101, as added Pub. L. 99–498, title I, §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, §101, as added Pub. L. 96–374, title I, §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, §101, Nov. 8, 1965, 79 Stat. 1219; Pub. L. 90–575, title II, §201, Oct. 16, 1968, 82 Stat. 1035; Pub. L. 92–318, title I, §101(a), June 23, 1972, 86 Stat. 236; Pub. L. 94–482, title I, §101(a), Oct. 12, 1976, 90 Stat. 2083; Pub. L. 96–49, §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.
2011—Subsec. (a)(1). Pub. L. 112–74 substituted “section 1091(d)” for “section 1091(d)(3)”.
2008—Subsec. (a)(1). Pub. L. 110–315, §101(a)(1)(A), inserted “, or persons who meet the requirements of section 1091(d)(3) of this title” before semicolon at end.
Subsec. (a)(3). Pub. L. 110–315, §101(a)(1)(B), inserted “, or awards a degree that is acceptable for admission to a graduate or professional degree program, subject to review and approval by the Secretary” before semicolon at end.
Subsec. (b)(2). Pub. L. 110–315, §101(a)(2), added par. (2) and struck out former par. (2) which read as follows: “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.”
Pub. L. 112–74, div. F, title III, §309(g), Dec. 23, 2011, 125 Stat. 1103, provided that: “The amendments made by subsections (a), (b), and (c) [amending this section and sections 1070a, 1087ss, and 1091 of this title, and enacting provisions set out as a note under section 1091 of this title] shall take effect on July 1, 2012.”
Pub. L. 111–39, §3, July 1, 2009, 123 Stat. 1935, provided that: “Except as otherwise provided in this Act [see Tables for classification], the amendments made by this Act shall take effect as if enacted on the date of enactment of the Higher Education Opportunity Act (Public Law 110–315) [Aug. 14, 2008].”
Pub. L. 110–315, §3, Aug. 14, 2008, 122 Stat. 3083, provided that: “Except as otherwise provided in this Act [see Tables for classification] or the amendments made by this Act, this Act and the amendments made by this Act shall take effect on the date of enactment of this Act [Aug. 14, 2008].”
Pub. L. 110–315, title I, §101(b), Aug. 14, 2008, 122 Stat. 3083, as amended by Pub. L. 111–39, title I, §101(a)(1), July 1, 2009, 123 Stat. 1935, provided that: “The amendments made by this section [amending this section] shall take effect on the date of enactment of this Act [Aug. 14, 2008].”
Pub. L. 105–244, §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.”
Pub. L. 102–325, §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.”
Pub. L. 100–50, §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].”
Pub. L. 99–498, §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].”
Pub. L. 96–374, title XIII, §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.”
Pub. L. 94–482, title V, §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.”
Pub. L. 111–152, title II, §2001(a), Mar. 30, 2010, 124 Stat. 1071, provided that: “This subtitle [subtitle A (§§2001–2213) of title II of Pub. L. 111–152, enacting section 1087i–2 of this title, amending sections 1002, 1067q, 1070a, 1070a–14, 1071, 1074, 1077a, 1078, 1078–2, 1078–3, 1078–8, 1085, 1087–1, 1087b, 1087d, 1087e, 1087f, 1087h, 1090, 1092f, 1098e, 1141, and 1161y of this title, enacting provisions set out as notes under sections 1002, 1070a, 1087d, and 1087e of this title, and repealing provisions set out as a note under section 1078 of this title] may be cited as the ‘SAFRA Act’.”
Pub. L. 110–315, §1(a), Aug. 14, 2008, 122 Stat. 3078, provided that: “This Act [see Tables for classification] may be cited as the ‘Higher Education Opportunity Act’.”
Pub. L. 110–227, §1, May 7, 2008, 122 Stat. 740, provided that: “This title [probably means this “Act”, enacting section 1087i–1 of this title, amending sections 1070a–1, 1071, 1078, 1078–2, 1078–8, 1087a, and 1087f of this title, and enacting provisions set out as notes under sections 1070a–1, 1071, 1078, 1078–8, and 1089 of this title] may be cited as the ‘Ensuring Continued Access to Student Loans Act of 2008’.”
Pub. L. 110–198, §1, Mar. 24, 2008, 122 Stat. 656, 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 2008’.”
Pub. L. 110–109, §1, Oct. 31, 2007, 121 Stat. 1028, provided that: “This Act [amending section 1085 of this title and enacting and amending provisions set out as notes under this section] may be cited as the ‘Third Higher Education Extension Act of 2007’.”
Pub. L. 110–84, §1(a), Sept. 27, 2007, 121 Stat. 784, provided that: “This Act [enacting sections 1070g to 1070g–3, 1098e, 1098f, 1099d, 1099e, and 1141 of this title, amending sections 1070a, 1070a–13, 1077a, 1078, 1078–3, 1085, 1087–1, 1087e, 1087h, 1087dd, 1087ff, 1087oo to 1087tt, and 1087vv of this title, repealing section 1078–9 of this title, enacting provisions set out as notes under sections 1070a, 1078, 1078–3, 1087oo, 1087ss, 1087tt, and 1087vv of this title, and amending provisions set out as a note under section 1078 of this title] may be cited as the ‘College Cost Reduction and Access Act’.”
Pub. L. 110–51, §1, July 31, 2007, 121 Stat. 263, 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 2007’.”
Pub. L. 110–44, §1, July 3, 2007, 121 Stat. 238, provided that: “This Act [enacting and amending provisions set out as notes under this section] may be cited as the ‘First Higher Education Extension Act of 2007’.”
Pub. L. 109–292, §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, §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, §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, §8001(a), Feb. 8, 2006, 120 Stat. 155, provided that: “This subtitle [subtitle A (§§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’.”
Pub. L. 109–150, §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, §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, §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’.”
Pub. L. 108–409, §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’.”
Pub. L. 106–420, §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, §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’.”
Pub. L. 105–244, §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’.”
Pub. L. 105–78, title VI, §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’.”
Pub. L. 104–208, div. A, title I, §101(e) [title VI, §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’.”
Pub. L. 103–382, title III, §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’.”
Pub. L. 103–208, §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, §4011(a), Aug. 10, 1993, 107 Stat. 341, provided that: “This subtitle [subtitle A (§§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’.”
Pub. L. 102–325, §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’.”
Pub. L. 102–26, §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’.”
Pub. L. 101–542, §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, §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, §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, §3001, Nov. 5, 1990, 104 Stat. 1388–25, provided that: “This subtitle [subtitle A (§§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’.”
Pub. L. 101–239, title II, §2001, Dec. 19, 1989, 103 Stat. 2111, provided that: “This subtitle [subtitle A (§§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’.”
Pub. L. 100–50, §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’.”
Pub. L. 99–498, §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, §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, §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’.”
Pub. L. 98–95, §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, §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’.”
Pub. L. 97–301, §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, §408(b), Oct. 17, 1986, 100 Stat. 1495, eff. with respect to any academic year beginning on or after July 1, 1988.
Pub. L. 97–35, title V, subtitle B, §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’.”
Pub. L. 96–374, §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’.”
Pub. L. 96–49, §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’.”
Pub. L. 95–566, §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, §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’.”
Pub. L. 94–482, §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, §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’.”
Pub. L. 92–318, §1, June 23, 1972, 86 Stat. 235, provided: “That this Act [enacting chapter 36 (§1601 et seq.), chapter 37 (§1651 et seq.), chapter 38 (§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’.”
Pub. L. 90–575, §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’.”
Pub. L. 89–752, §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’.”
Pub. L. 89–329, §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, §509, as added by Pub. L. 90–35, §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, §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)(18) of this title.
Pub. L. 109–81, Sept. 30, 2005, 119 Stat. 2048, as amended by Pub. L. 109–150, §2(a), Dec. 30, 2005, 119 Stat. 2884; Pub. L. 109–212, §2, Apr. 1, 2006, 120 Stat. 321; Pub. L. 109–238, §2, June 30, 2006, 120 Stat. 507; Pub. L. 109–292, §2, Sept. 30, 2006, 120 Stat. 1340; Pub. L. 110–44, §2, July 3, 2007, 121 Stat. 238; Pub. L. 110–51, §2, July 31, 2007, 121 Stat. 263; Pub. L. 110–109, §2, Oct. 31, 2007, 121 Stat. 1028; Pub. L. 110–198, §2, Mar. 24, 2008, 122 Stat. 656; Pub. L. 110–230, §1(a), May 13, 2008, 122 Stat. 877; Pub. L. 110–238, §1(a), May 30, 2008, 122 Stat. 1558; Pub. L. 110–256, §1(a), June 30, 2008, 122 Stat. 2425; Pub. L. 110–300, §1(a), July 31, 2008, 122 Stat. 2998, provided that:
“This Act may be cited as the ‘Higher Education Extension Act of 2005’.
“(a)
“(b)
“(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)
“(d)
“(e)
“(f)
[Pub. L. 110–300, §1(c), July 31, 2008, 122 Stat. 2998, provided that: “The amendment made by subsection (a) [amending Pub. L. 109–81, set out above] shall take effect as if enacted on July 31, 2008.”]
[Pub. L. 110–230, §1(c), May 13, 2008, 122 Stat. 877, provided that: “The amendment made by subsection (a) [amending Pub. L. 109–81, set out above] shall take effect as if enacted on April 30, 2008.”]
[Pub. L. 110–300, §1(b), July 31, 2008, 122 Stat. 2998, provided that: “Nothing in this section [enacting provisions set out above and amending Pub. L. 109–81, set out 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], by the College Cost Reduction and Access Act (Public Law 110–84) [see Short Title of 2007 Amendment note above], or by the Ensuring Continued Access to Student Loans Act of 2008 (Public Law 110–227) [see Short Title of 2008 Amendment note above] to the provisions of the Higher Education Act of 1965 [20 U.S.C. 1001 et seq., 42 U.S.C. 2751 et seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short Title of 2004 Amendment note above].”]
[Pub. L. 110–256, §1(b), June 30, 2008, 122 Stat. 2425, provided that: “Nothing in this section [amending Pub. L. 109–81, set out 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], by the College Cost Reduction and Access Act (Public Law 110–84) [see Short Title of 2007 Amendment note above], or by the Ensuring Continued Access to Student Loans Act of 2008 (Public Law 110–227) [see Short Title of 2008 Amendment note above] to the provisions of the Higher Education Act of 1965 [20 U.S.C. 1001 et seq., 42 U.S.C. 2751 et seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short Title of 2004 Amendment note above].”]
[Pub. L. 110–238, §1(b), May 30, 2008, 122 Stat. 1558, provided that: “Nothing in this section [amending Pub. L. 109–81, set out 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], by the College Cost Reduction and Access Act (Public Law 110–84) [see Short Title of 2007 Amendment note above], or by the Ensuring Continued Access to Student Loans Act of 2008 (Public Law 110–227) [see Short Title of 2008 Amendment note above] to the provisions of the Higher Education Act of 1965 [20 U.S.C. 1001 et seq., 42 U.S.C. 2751 et seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short Title of 2004 Amendment note above].”]
[Pub. L. 110–230, §1(b), May 13, 2008, 122 Stat. 877, provided that: “Nothing in this section [enacting provisions set out above and amending Pub. L. 109–81, set out 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] or by the College Cost Reduction and Access Act (Public Law 110–84) [see Short Title of 2007 Amendment note above] to the provisions of the Higher Education Act of 1965 [20 U.S.C. 1001 et seq., 42 U.S.C. 2751 et seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short Title of 2004 Amendment note above].”]
[Pub. L. 110–198, §3, Mar. 24, 2008, 122 Stat. 656, provided that: “Nothing in this Act [see Short Title of 2008 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] or by the College Cost Reduction and Access Act (Public Law 110–84) [see Short Title of 2007 Amendment note above] to the provisions of the Higher Education Act of 1965 [20 U.S.C. 1001 et seq., 42 U.S.C. 2751 et seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short Title of 2004 Amendment note above].”]
[Pub. L. 110–109, §3, Oct. 31, 2007, 121 Stat. 1028, provided that: “Nothing in this Act [see Short Title of 2007 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] or by the College Cost Reduction and Access Act (Public Law 110–84) [see Short Title of 2007 Amendment note above] to the provisions of the Higher Education Act of 1965 [20 U.S.C. 1001 et seq., 42 U.S.C. 2751 et seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short Title of 2004 Amendment note above].”]
[Pub. L. 110–51, §3, July 31, 2007, 121 Stat. 263, provided that: “Nothing in this Act [see Short Title of 2007 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., 42 U.S.C. 2751 et seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short Title of 2004 Amendment note above].”]
[Pub. L. 110–44, §3, July 3, 2007, 121 Stat. 238, provided that: “Nothing in this Act [see Short Title of 2007 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., 42 U.S.C. 2751 et seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short Title of 2004 Amendment note above].”]
[Pub. L. 109–292, §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., 42 U.S.C. 2751 et seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short Title of 2004 Amendment note above].”]
[Pub. L. 109–238, §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., 42 U.S.C. 2751 et seq.] and the Taxpayer-Teacher Protection Act of 2004 [see Short Title of 2004 Amendment note above].”]
[Pub. L. 109–212, §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., 42 U.S.C. 2751 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.
Pub. L. 105–244, title VIII, §805, Oct. 7, 1998, 112 Stat. 1807, which 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, was repealed by Pub. L. 110–315, title IX, §931(1), Aug. 14, 2008, 122 Stat. 3456.
Pub. L. 103–208, §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].”
Pub. L. 102–325, §1(c), July 23, 1992, 106 Stat. 448, as amended by Pub. L. 105–244, title I, §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].”
Pub. L. 92–318, §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.”
Pub. L. 90–575, title V, §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, §401(e)(2), Apr. 13, 1970, 84 Stat. 173.
Pub. L. 90–575, title V, §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.
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 C 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 C of subchapter IV of this chapter, consistent with the requirements of section 1087b(d) of this title.
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, nursing 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 under part C of subchapter IV of this chapter unless—
(i) except as provided in subparagraph (B)(iii)(IV), 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 C of subchapter IV of this chapter; and
(bb) at least 75 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 C of subchapter IV of this chapter; or
(II) the institution—
(aa) has or had a clinical training program that was approved by a State as of January 1, 1992; and
(bb) continues to operate a clinical training program in at least one State that is approved by that State;
(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; or
(iii) in the case of a nursing school located outside of the United States—
(I) the nursing school has an agreement with a hospital, or accredited school of nursing (as such terms are defined in section 296 of title 42), located in the United States that requires the students of the nursing school to complete the students’ clinical training at such hospital or accredited school of nursing;
(II) the nursing school has an agreement with an accredited school of nursing located in the United States providing that the students graduating from the nursing school located outside of the United States also receive a degree from the accredited school of nursing located in the United States;
(III) the nursing school certifies only Federal Direct Stafford Loans under section 1087e(a)(2)(A) of this title, Federal Direct Unsubsidized Stafford Loans under section 1087e(a)(2)(D) of this title, or Federal Direct PLUS Loans under section 1087e(a)(2)(B) of this title for students attending the institution;
(IV) the nursing school reimburses the Secretary for the cost of any loan defaults for current and former students included in the calculation of the institution's cohort default rate during the previous fiscal year; and
(V) not less than 75 percent of the individuals who were students or graduates of the nursing school, and who took the National Council Licensure Examination for Registered Nurses in the year preceding the year for which the institution is certifying a Federal Direct Stafford Loan under section 1087e(a)(2)(A) of this title, a Federal Direct Unsubsidized Stafford Loan under section 1087e(a)(2)(D) of this title, or a Federal Direct PLUS Loan under section 1087e(a)(2)(B) of this title, received a passing score on such examination.
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.
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.
Not later than 1 year after August 14, 2008, the advisory panel described in clause (i) shall submit a report to the Secretary and to the authorizing committees recommending eligibility criteria for participation in the loan programs under part C of subchapter IV of this chapter for graduate medical schools that—
(aa) are located outside of the United States;
(bb) do not meet the requirements of subparagraph (A)(i); and
(cc) have a clinical training program approved by a State prior to January 1, 2008.
In the report described in subclause (I), the advisory panel's eligibility criteria shall include recommendations regarding the appropriate levels of performance for graduate medical schools described in such subclause in the following areas:
(aa) Entrance requirements.
(bb) Retention and graduation rates.
(cc) Successful placement of students in United States medical residency programs.
(dd) Passage rate of students on the United States Medical Licensing Examination.
(ee) The extent to which State medical boards have assessed the quality of such school's program of instruction, including through on-site reviews.
(ff) The extent to which graduates of such schools would be unable to practice medicine in 1 or more States, based on the judgment of a State medical board.
(gg) Any areas recommended by the Comptroller General of the United States under section 1101 of the Higher Education Opportunity Act.
(hh) Any additional areas the Secretary may require.
In the recommendations described in subclause (II), the criteria described in subparagraph (A)(i)(I)(bb) shall be a minimum eligibility requirement for a graduate medical school described in subclause (I) to participate in the loan programs under part C of subchapter IV of this chapter.
The Secretary may—
(aa) not earlier than 180 days after the submission of the report described in subclause (I), issue proposed regulations establishing criteria for the eligibility of graduate medical schools described in such subclause to participate in the loan programs under part C of subchapter IV of this chapter based on the recommendations of such report; and
(bb) not earlier than one year after the issuance of proposed regulations under item (aa), issue final regulations establishing such criteria for eligibility.
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 C of subchapter IV of this chapter.
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 C of subchapter IV while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred.
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) 1 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) 1 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.
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.
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.
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.
For the purpose of this section, the term “proprietary institution of higher education” means a school that—
(A)(i) provides an eligible program of training to prepare students for gainful employment in a recognized occupation; or
(ii)(I) provides a program leading to a baccalaureate degree in liberal arts, and has provided such a program since January 1, 2009; and
(II) is accredited by a recognized regional accrediting agency or association, and has continuously held such accreditation since October 1, 2007, or earlier;
(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; and
(E) has been in existence for at least 2 years.
The term “proprietary institution of higher education” also includes a proprietary educational institution in any State that, in lieu of the requirement in section 1001(a)(1) of this title, admits as regular students individuals—
(A) who are beyond the age of compulsory school attendance in the State in which the institution is located; or
(B) who will be dually or concurrently enrolled in the institution and a secondary school.
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.
The term “postsecondary vocational institution” also includes an educational institution in any State that, in lieu of the requirement in section 1001(a)(1) of this title, admits as regular students individuals—
(A) who are beyond the age of compulsory school attendance in the State in which the institution is located; or
(B) who will be dually or concurrently enrolled in the institution and a secondary school.
(Pub. L. 89–329, title I, §102, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1586; amended Pub. L. 108–98, §1(a), Oct. 10, 2003, 117 Stat. 1174; Pub. L. 109–171, title VIII, §8002, Feb. 8, 2006, 120 Stat. 155; Pub. L. 109–270, §2(c)(1), Aug. 12, 2006, 120 Stat. 746; Pub. L. 110–315, title I, §102(a)–(d)(1), Aug. 14, 2008, 122 Stat. 3083–3085; Pub. L. 111–39, title I, §101(b)(1), July 1, 2009, 123 Stat. 1935; Pub. L. 111–152, title II, §2209(b)(1), Mar. 30, 2010, 124 Stat. 1077.)
Section 1101 of the Higher Education Opportunity Act, referred to in subsec. (a)(2)(B)(iii)(II)(gg), is section 1101 of title XI of 110–315, Aug. 14, 2008, 122 Stat. 3490, which is not classified to the Code.
Section 1091(l) of this title, referred to in subsec. (a)(3)(A), (B), was struck out and a new section 1091(l) was added by Pub. L. 110–315, title IV, §485(a)(5), Aug. 14, 2008, 122 Stat. 3288. As so amended, section 1091(l) no longer contains a par. (4) or a definition of “telecommunications”.
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, §102, as added Pub. L. 102–325, title I, §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, §102, as added Pub. L. 99–498, title I, §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, §102, as added Pub. L. 96–374, title I, §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, §102, Nov. 8, 1965, 79 Stat. 1219; Pub. L. 94–482, title I, §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.
2010—Pub. L. 111–152, §2209(b)(1)(A), substituted “part C” for “part B” wherever appearing before “subchapter IV”.
Subsec. (a)(1)(C). Pub. L. 111–152, §2209(b)(1)(B), inserted “, consistent with the requirements of section 1087b(d) of this title” before period at end.
Subsec. (a)(2)(A). Pub. L. 111–152, §2209(b)(1)(C)(i), substituted “made” for “made, insured, or guaranteed” in introductory provisions.
Subsec. (a)(2)(A)(iii)(III). Pub. L. 111–152, §2209(b)(1)(C)(ii)(I), substituted “only Federal Direct Stafford Loans under section 1087e(a)(2)(A) of this title, Federal Direct Unsubsidized Stafford Loans under section 1087e(a)(2)(D) of this title, or Federal Direct PLUS Loans under section 1087e(a)(2)(B) of this title” for “only Federal Stafford Loans under section 1078 of this title, unsubsidized Federal Stafford Loans under section 1078–8 of this title, or Federal PLUS loans under section 1078–2 of this title”.
Subsec. (a)(2)(A)(iii)(V). Pub. L. 111–152, §2209(b)(1)(C)(ii)(II), substituted “a Federal Direct Stafford Loan under section 1087e(a)(2)(A) of this title, a Federal Direct Unsubsidized Stafford Loan under section 1087e(a)(2)(D) of this title, or a Federal Direct PLUS Loan under section 1087e(a)(2)(B) of this title” for “a Federal Stafford Loan under section 1078 of this title, an unsubsidized Federal Stafford Loan under section 1078–8 of this title, or a Federal PLUS loan under section 1078–2 of this title”.
2009—Subsec. (a)(2)(D). Pub. L. 111–39 substituted “under part B of subchapter IV” for “under part B”.
2008—Subsec. (a)(2)(A). Pub. L. 110–315, §102(a)(1)(A), inserted “nursing school,” after “graduate medical school,” in introductory provisions.
Subsec. (a)(2)(A)(i). Pub. L. 110–315, §102(a)(1)(B)(i), inserted “except as provided in subparagraph (B)(iii)(IV),” before “in the case” in introductory provisions.
Subsec. (a)(2)(A)(i)(I)(bb). Pub. L. 110–315, §102(b), substituted “75” for “60”.
Subsec. (a)(2)(A)(i)(II). Pub. L. 110–315, §102(a)(1)(B)(ii), added subcl. (II) and struck out former subcl. (II) which read as follows: “the institution has a clinical training program that was approved by a State as of January 1, 1992; or”.
Subsec. (a)(2)(A)(iii). Pub. L. 110–315, §102(a)(1)(C), (D), added cl. (iii).
Subsec. (a)(2)(B)(iii). Pub. L. 110–315, §102(a)(2), added cl. (iii).
Subsec. (b)(1)(A). Pub. L. 110–315, §102(d)(1)(A)(i), added subpar. (A) and struck out former subpar. (A) which read as follows: “provides an eligible program of training to prepare students for gainful employment in a recognized occupation;”.
Subsec. (b)(1)(D) to (F). Pub. L. 110–315, §102(c), struck out “and” after semicolon in subpar. (D), substituted “; and” for period in subpar. (E), and struck out subpar. (F) which read as follows: “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.”
Subsec. (b)(2). Pub. L. 110–315, §102(d)(1)(A)(ii), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “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.”
Subsec. (c)(2). Pub. L. 110–315, §102(d)(1)(B), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “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.”
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, §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, §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.
Pub. L. 111–152, title II, §2209(b)(2), Mar. 30, 2010, 124 Stat. 1078, provided that: “The amendments made by subparagraph (C) of paragraph (1) [amending this section] shall be effective on July 1, 2010, as if enacted as part of section 102(a)(1) of the Higher Education Opportunity Act (Public Law 110–315) and subject to section 102(e) of such Act as amended by section 101(a)(2) of Public Law 111–39 (20 U.S.C. 1002 note).”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 110–315, title I, §102(e), Aug. 14, 2008, 122 Stat. 3086, as amended by Pub. L. 111–39, title I, §101(a)(2), July 1, 2009, 123 Stat. 1935, provided that: “The amendments made by subsections (a)(1), (b), and (d) [amending this section] shall take effect on July 1, 2010, except that, with respect to foreign nursing schools that were eligible to participate in part B of title IV [20 U.S.C. 1071 et seq.] as of the day before the date of enactment of this Act [Aug. 14, 2008], the amendments made by subsection (a)(1)(D) [amending this section] shall take effect on July 1, 2012.”
Pub. L. 109–171, title VIII, §8001(c), Feb. 8, 2006, 120 Stat. 155, provided that: “Except as otherwise provided in this subtitle [subtitle A (§§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.”
Pub. L. 108–98, §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.”
Pub. L. 110–315, title I, §102(d)(2), Aug. 14, 2008, 122 Stat. 3086, provided that: “Nothing in the amendment made by paragraph (1)(A)(i) to section 102(b)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1002(b)(1)(A)) shall be construed to negate or supercede any State laws governing proprietary institutions of higher education.”
1 See References in Text note below.
In this chapter and part C of subchapter I of chapter 34 of title 42:
The term “authorizing committees” means the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Labor of the House of Representatives.
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.
Except as otherwise provided, the term “critical foreign language” means each of the languages contained in the list of critical languages designated by the Secretary in the Federal Register on August 2, 1985 (50 Fed. Reg. 31412; promulgated under the authority of section 212(d) of the Education for Economic Security Act (repealed by section 2303 of the Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary School Improvement Amendments of 1988)), as updated by the Secretary from time to time and published in the Federal Register, except that in the implementation of this definition with respect to a specific title, the Secretary may set priorities according to the purposes of such title and the national security, economic competitiveness, and educational needs of the United States.
The term “Department” means the Department of Education.
The term “diploma mill” means an entity that—
(A)(i) offers, for a fee, degrees, diplomas, or certificates, that may be used to represent to the general public that the individual possessing such a degree, diploma, or certificate has completed a program of postsecondary education or training; and
(ii) requires such individual to complete little or no education or coursework to obtain such degree, diploma, or certificate; and
(B) lacks accreditation by an accrediting agency or association that is recognized as an accrediting agency or association of institutions of higher education (as such term is defined in section 1002 of this title) by—
(i) the Secretary pursuant to subpart 2 of part G of subchapter IV of this chapter; or
(ii) a Federal agency, State government, or other organization or association that recognizes accrediting agencies or associations.
The term “disability” has the same meaning given that term under section 12102(2) of title 42.
Except as otherwise provided, the term “distance education” means education that uses one or more of the technologies described in subparagraph (B)—
(i) to deliver instruction to students who are separated from the instructor; and
(ii) to support regular and substantive interaction between the students and the instructor, synchronously or asynchronously.
For the purposes of subparagraph (A), the technologies used may include—
(i) the Internet;
(ii) one-way and two-way transmissions through open broadcast, closed circuit, cable, microwave, broadband lines, fiber optics, satellite, or wireless communications devices;
(iii) audio conferencing; or
(iv) video cassettes, DVDs, and CD–ROMs, if the cassettes, DVDs, or CD–ROMs are used in a course in conjunction with any of the technologies listed in clauses (i) through (iii).
The term “early childhood education program” means—
(A) a Head Start program or an Early Head Start program carried out under the Head Start Act (42 U.S.C. 9831 et seq.), including a migrant or seasonal Head Start program, an Indian Head Start program, or a Head Start program or an Early Head Start program that also receives State funding;
(B) a State licensed or regulated child care program; or
(C) a program that—
(i) serves children from birth through age six that addresses the children's cognitive (including language, early literacy, and early mathematics), social, emotional, and physical development; and
(ii) is—
(I) a State prekindergarten program;
(II) a program authorized under section 619 [20 U.S.C. 1419] or part C of the Individuals with Disabilities Education Act [20 U.S.C. 1431 et seq.]; or
(III) a program operated by a local educational agency.
The term “elementary school” has the same meaning given that term under section 7801 of this title.
The term “gifted and talented” has the same meaning given that term under section 7801 of this title.
The term “local educational agency” has the same meaning given that term under section 7801 of this title.
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.
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.
The term “poverty line” means the poverty line (as defined in section 9902(2) of title 42) applicable to a family of the size involved.
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.
The term “secondary school” has the same meaning given that term under section 7801 of this title.
The term “Secretary” means the Secretary of Education.
The term “service-learning” has the same meaning given that term under section 12511(23) 1 of title 42.
The term “special education teacher” means teachers who teach children with disabilities as defined in section 602 of the Individuals with Disabilities Education Act.
The term “State educational agency” has the same meaning given that term under section 7801 of this title.
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.
The term “Freely Associated States” means the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
The term “State higher education agency” means the officer or agency primarily responsible for the State supervision of higher education.
The term “universal design” has the meaning given the term in section 3002 of title 29.
The term “universal design for learning” means a scientifically valid framework for guiding educational practice that—
(A) provides flexibility in the ways information is presented, in the ways students respond or demonstrate knowledge and skills, and in the ways students are engaged; and
(B) reduces barriers in instruction, provides appropriate accommodations, supports, and challenges, and maintains high achievement expectations for all students, including students with disabilities and students who are limited English proficient.
(Pub. L. 89–329, title I, §103, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1589; amended Pub. L. 107–110, title X, §1076(g), Jan. 8, 2002, 115 Stat. 2091; Pub. L. 110–315, title I, §103(a), Aug. 14, 2008, 122 Stat. 3086.)
Section 212(d) of the Education for Economic Security Act, referred to in par. (3), is section 212(d) of title II of Pub. L. 98–377, Aug. 11, 1984, 98 Stat. 1282, which was classified to section 3972(d) of this title, prior to repeal by Pub. L. 100–297, title II, §2303, Apr. 28, 1988, 102 Stat. 324.
The Head Start Act, referred to in par. (8)(A), is subchapter B (§635 et seq.) of chapter 8 of subtitle A of title VI of Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 499, which is classified generally to subchapter II (§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 Individuals with Disabilities Education Act, referred to in par. (8)(C)(ii)(II), is title VI of Pub. L. 91–230, Apr. 13, 1970, 84 Stat. 175. Part C of the Act is classified generally to subchapter III (§1431 et seq.) of chapter 33 of this title. For complete classification of this Act to the Code, see section 1400 of this title and Tables.
Section 12511(23) of title 42, referred to in par. (18), was redesignated section 12511(40) by Pub. L. 111–13, title I, §1102(b)(1), Apr. 21, 2009, 123 Stat. 1467.
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, §103, as added Pub. L. 102–325, title I, §101, July 23, 1992, 106 Stat. 459; amended Pub. L. 103–208, §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, §103, as added Pub. L. 99–498, title I, §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, §103, as added Pub. L. 96–374, title I, §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, §103, Nov. 8, 1965, 79 Stat. 1219; Pub. L. 92–318, title I, §102(a)(2), June 23, 1972, 86 Stat. 237; Pub. L. 94–482, title I, §101(b)(2), (g)(2), Oct. 12, 1976, 90 Stat. 2084, 2086; Pub. L. 95–43, §1(a)(1), June 15, 1977, 91 Stat. 213; Pub. L. 96–96, §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, §104, as added Pub. L. 102–325, title I, §101, July 23, 1992, 106 Stat. 460; amended Pub. L. 103–208, §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, §104, as added Pub. L. 96–374, title I, §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, §104, Nov. 8, 1965, 79 Stat. 1220; Pub. L. 94–482, title I, §101(b)(3), Oct. 12, 1976, 90 Stat. 2084; Pub. L. 95–43, §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, §105, as added Pub. L. 102–325, title I, §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, §105, as added Pub. L. 96–374, title I, §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, §105, Nov. 8, 1965, 79 Stat. 1220; Pub. L. 90–575, title II, §202, Oct. 16, 1968, 82 Stat. 1036; Pub. L. 94–482, title I, §101(b)(4)–(10), (g)(2), Oct. 12, 1976, 90 Stat. 2084–2086; Pub. L. 95–43, §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, §106, as added Pub. L. 92–318, title I, §102(a)(1), June 23, 1972, 86 Stat. 237; amended Pub. L. 94–482, title I, §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, §106, as added Pub. L. 102–325, title I, §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, §107, formerly §106, Nov. 8, 1965, 79 Stat. 1221; Pub. L. 90–575, title II, §203(a), Oct. 16, 1968, 82 Stat. 1036, renumbered Pub. L. 92–318, title I, §102(a)(1), June 23, 1972, 86 Stat. 236, and amended Pub. L. 94–482, title I, §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, §108, formerly §107, Nov. 8, 1965, 79 Stat. 1222, renumbered Pub. L. 92–318, title I, §102(a)(1), June 23, 1972, 86 Stat. 236, and amended Pub. L. 94–482, title I, §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, §109, formerly §108, Nov. 8, 1965, 79 Stat. 1222, renumbered Pub. L. 92–318, title I, §102(a)(1), June 23, 1972, 86 Stat. 236, and amended Pub. L. 94–482, title I, §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, §110, as added Pub. L. 93–29, title VIII, §803, May 3, 1973, 87 Stat. 59, and amended Pub. L. 94–135, title II, §201, Nov. 28, 1975, 89 Stat. 726; Pub. L. 94–482, title I, §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, §111, as added Pub. L. 94–482, title I, §101(e), Oct. 12, 1976, 90 Stat. 2085, related to technical assistance and administration.
Section 1009, Pub. L. 89–329, title I, §112, formerly §109, Nov. 8, 1965, 79 Stat. 1223; Pub. L. 91–230, title IV, §401(h)(4), Apr. 13, 1970, 84 Stat. 174, renumbered §110, Pub. L. 92–318, title I, §102(a)(1), June 23, 1972, 86 Stat. 236, renumbered §111, Pub. L. 93–29, title VIII, §803, May 3, 1973, 87 Stat. 59; Pub. L. 93–380, title VIII, §831, Aug. 21, 1974, 88 Stat. 603; Pub. L. 93–644, §9(a), Jan. 4, 1975, 88 Stat. 2310, renumbered §112 and amended Pub. L. 94–482, title I, §101(e), (f)(1), (g)(2), Oct. 12, 1976, 90 Stat. 2085, 2086; 1977 Reorg. Plan No. 2, §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, §113, formerly §110, Nov. 8, 1965, 79 Stat. 1224, renumbered §111, Pub. L. 92–318, title I, §102(a)(1), June 23, 1972, 86 Stat. 236, renumbered §112, Pub. L. 93–29, title VIII, §803, May 3, 1973, 87 Stat. 59, renumbered §113 and amended Pub. L. 94–482, title I, §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.
2008—Pub. L. 110–315, §103(a)(2), reordered pars. in alphabetical order based on headings of pars. and renumbered pars. as so reordered, resulting in pars. (1) to (22) being redesignated as (2), (4), (6), (9) to (13), (15) to (20), (22), (21), (1), (3), (7), (5), (8), and (14), respectively.
Pars. (17) to (24). Pub. L. 110–315, §103(a)(1), added pars. (17) to (24).
2002—Pars. (4) to (6), (10), (14). Pub. L. 107–110 substituted “7801” for “8801”.
Committee on Education and Labor of House of Representatives changed to Committee on Education and the Workforce of House of Representatives by House Resolution No. 5, One Hundred Twelfth Congress, Jan. 5, 2011.
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.
1 See References in Text note below.
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.
Nothing in this chapter and part C of subchapter I of chapter 34 of title 42 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.
(Pub. L. 89–329, title I, §111, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1590; amended Pub. L. 111–39, title I, §101(b)(2), July 1, 2009, 123 Stat. 1935.)
The Americans with Disabilities Act of 1990, referred to in subsec. (b), is Pub. L. 101–336, July 26, 1990, 104 Stat. 327, which is classified principally to chapter 126 (§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, which is classified generally to chapter 16 (§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.
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, §121, as added Pub. L. 102–325, title I, §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, §111, as added Pub. L. 99–498, title I, §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, §111, as added Pub. L. 96–374, title I, §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, §114, formerly §111, Nov. 8, 1965, 79 Stat. 1224, renumbered §112 and amended Pub. L. 92–318, title I, §§102(a)(1), 131(d)(2)(A), June 23, 1972, 86 Stat. 236, 260, renumbered §113, Pub. L. 93–29, title VIII, §803, May 3, 1973, 87 Stat. 59, renumbered §114, Pub. L. 94–482, title I, §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.
2009—Subsec. (b). Pub. L. 111–39 substituted “with” for “With”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
(1) 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 and part C of subchapter I of chapter 34 of title 42, whether or not such program, activity, or division is sponsored or officially sanctioned by the institution.
(2) It is the sense of Congress that—
(A) the diversity of institutions and educational missions is one of the key strengths of American higher education;
(B) individual institutions of higher education have different missions and each institution should design its academic program in accordance with its educational goals;
(C) an institution of higher education should facilitate the free and open exchange of ideas;
(D) students should not be intimidated, harassed, discouraged from speaking out, or discriminated against;
(E) students should be treated equally and fairly; and
(F) nothing in this paragraph shall be construed to modify, change, or infringe upon any constitutionally protected religious liberty, freedom, expression, or association.
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, provided that the imposition of such sanction is done objectively and fairly; 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.
For the purposes of this section:
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.
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.
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.
(Pub. L. 89–329, title I, §112, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1591; amended Pub. L. 110–315, title I, §104, Aug. 14, 2008, 122 Stat. 3090.)
A prior section 1011a, Pub. L. 89–329, title I, §122, as added Pub. L. 102–325, title I, §101, July 23, 1992, 106 Stat. 462, authorized grants to States, prior to the general amendment of this subchapter by Pub. L. 105–244.
2008—Subsec. (a). Pub. L. 110–315, §104(1), designated existing provisions as par. (1) and added par. (2).
Subsec. (b)(1). Pub. L. 110–315, §104(2), inserted “, provided that the imposition of such sanction is done objectively and fairly” after “higher education”.
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.
(Pub. L. 89–329, title I, §113, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1591; amended Pub. L. 110–315, title I, §105, Aug. 14, 2008, 122 Stat. 3090.)
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, §123, as added Pub. L. 102–325, title I, §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.
2008—Pub. L. 110–315 substituted “Territorial waiver authority” for “Treatment of territories and territorial student assistance” in section catchline and struck out subsec. (a) designation and heading and subsec. (b). Text of former subsec. (b) read as follows: “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.”
There is established in the Department a National Advisory Committee on Institutional Quality and Integrity (in this section referred to as the “Committee”) to assess the process of accreditation and the institutional eligibility and certification of institutions of higher education (as defined in section 1002 of this title) under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42.
The Committee shall have 18 members, of which—
(A) six members shall be appointed by the Secretary;
(B) six members shall be appointed by the Speaker of the House of Representatives, three of whom shall be appointed on the recommendation of the majority leader of the House of Representatives, and three of whom shall be appointed on the recommendation of the minority leader of the House of Representatives; and
(C) six members shall be appointed by the President pro tempore of the Senate, three of whom shall be appointed on the recommendation of the majority leader of the Senate, and three of whom shall be appointed on the recommendation of the minority leader of the Senate.
Individuals shall be appointed as members of the Committee—
(A) on the basis of the individuals’ experience, integrity, impartiality, and good judgment;
(B) from among individuals who are representatives of, or knowledgeable concerning, education and training beyond secondary education, representing all sectors and types of institutions of higher education (as defined in section 1002 of this title); and
(C) on the basis of the individuals’ technical qualifications, professional standing, and demonstrated knowledge in the fields of accreditation and administration in higher education.
Except as provided in paragraph (5), the term of office of each member of the Committee shall be for six 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.
A vacancy on the Committee shall be filled in the same manner as the original appointment was made not later than 90 days after the vacancy occurs. If a vacancy occurs in a position to be filled by the Secretary, the Secretary shall publish a Federal Register notice soliciting nominations for the position not later than 30 days after being notified of the vacancy.
The terms of office for the initial members of the Committee shall be—
(A) three years for members appointed under paragraph (1)(A);
(B) four years for members appointed under paragraph (1)(B); and
(C) six years for members appointed under paragraph (1)(C).
The members of the Committee shall select a chairperson from among the members.
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) 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;
(5) 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
(6) carry out such other advisory functions relating to accreditation and institutional eligibility as the Secretary may prescribe by regulation.
The Committee shall meet not less often than twice each year, at the call of the Chairperson.
The Committee shall submit the date and location of each meeting in advance to the Secretary, and the Secretary shall publish such information in the Federal Register not later than 30 days before the meeting.
The agenda for a meeting of the Committee shall be established by the Chairperson and shall be submitted to the members of the Committee upon notification of the meeting.
The agenda shall include, at a minimum, opportunity for public comment during the Committee's deliberations.
The Secretary shall designate an employee of the Department to serve as the Secretary's designee to the Committee, and the Chairperson shall invite the Secretary's designee to attend all meetings of the Committee.
The Federal Advisory Committee Act (5 U.S.C. App.) shall apply to the Committee, except that section 14 of such Act shall not apply.
The Secretary shall annually publish in the Federal Register—
(A) a list containing, for each member of the Committee—
(i) the member's name;
(ii) the date of the expiration of the member's term of office; and
(iii) the name of the individual described in subsection (b)(1) who appointed the member; and
(B) a solicitation of nominations for each expiring term of office on the Committee of a member appointed by the Secretary.
Not later than the last day of each fiscal year, the Committee shall make available an annual report to the Secretary, the authorizing committees, and the public. The annual report shall contain—
(A) a detailed summary of the agenda and activities of, and the findings and recommendations made by, the Committee during the fiscal year preceding the fiscal year in which the report is made;
(B) a list of the date and location of each meeting during the fiscal year preceding the fiscal year in which the report is made;
(C) a list of the members of the Committee; and
(D) a list of the functions of the Committee, including any additional functions established by the Secretary through regulation.
The Committee shall terminate on September 30, 2014.
(Pub. L. 89–329, title I, §114, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1592; amended Pub. L. 110–315, title I, §106(a), Aug. 14, 2008, 122 Stat. 3090.)
The Federal Advisory Committee Act, referred to in subsec. (d)(4), is Pub. L. 92–463, Oct. 6, 1972, 86 Stat. 770, which is set out in the Appendix to Title 5, Government Organization and Employees.
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, §124, as added Pub. L. 102–325, title I, §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.
2008—Pub. L. 110–315 amended section generally, revising provisions relating to the National Advisory Committee on Institutional Quality and Integrity and extending its termination date from Sept. 30, 2004, to September 30, 2014.
Pub. L. 110–315, title I, §106(c), Aug. 14, 2008, 122 Stat. 3093, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on January 1, 2009.”
Pub. L. 110–315, title I, §106(b), Aug. 14, 2008, 122 Stat. 3093, provided that: “Notwithstanding section 114 of the Higher Education Act of 1965 (20 U.S.C. 1011c) (as in effect before, during, and after the date of enactment of this Act [Aug. 14, 2008])—
“(1) the term of each member appointed to the National Advisory Committee on Institutional Quality and Integrity before the date of enactment of this Act shall expire on the date of enactment of this Act;
“(2) no new members shall be appointed to the National Advisory Committee on Institutional Quality and Integrity during the period beginning on the date of enactment of this Act and ending on January 31, 2009; and
“(3) no meeting of the National Advisory Committee on Institutional Quality and Integrity shall be convened during such period.”
The Secretary shall, in appointing individuals to any commission, committee, board, panel, or other body in connection with the administration of this chapter and part C of subchapter I of chapter 34 of title 42, include individuals who are, at the time of appointment, attending an institution of higher education.
(Pub. L. 89–329, title I, §115, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1593.)
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, §125, as added Pub. L. 102–325, title I, §101, July 23, 1992, 106 Stat. 463, related to articulation agreements, prior to the general amendment of this subchapter by Pub. L. 105–244.
Nothing in this chapter and part C of subchapter I of chapter 34 of title 42 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.
(Pub. L. 89–329, title I, §116, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1593.)
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, §126, as added Pub. L. 102–325, title I, §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.
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.
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.
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.
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.
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.
All disclosure reports required by this section shall be public records open to inspection and copying during business hours.
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.
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.
The Secretary may promulgate regulations to carry out this section.
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.
(Pub. L. 89–329, title I, §117, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1593.)
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, §127, as added Pub. L. 102–325, title I, §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.
All applications submitted under the provisions of this chapter and part C of subchapter I of chapter 34 of title 42 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.
(Pub. L. 89–329, title I, §118, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1595.)
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, §128, as added Pub. L. 102–325, title I, §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.
This section may be cited as the “Collegiate Initiative To Reduce Binge Drinking and Illegal Alcohol Consumption”.
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.
(Pub. L. 89–329, title I, §119, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1596.)
A prior section 1011h, Pub. L. 89–329, title I, §129, as added Pub. L. 102–325, title I, §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.
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;
(B) determine the number of drug and alcohol-related violations and fatalities that—
(i) occur on the institution's campus (as defined in section 1092(f)(6) of this title), or as part of any of the institution's activities; and
(ii) are reported to campus officials;
(C) determine the number and type of sanctions described in paragraph (1)(E) that are imposed by the institution as a result of drug and alcohol-related violations and fatalities on the institution's campus or as part of any of the institution's activities; and
(D) ensure that the sanctions required by paragraph (1)(E) are consistently enforced.
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.
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.
The sanctions required by subsection (a)(1)(E) of this section may include the completion of an appropriate rehabilitation program.
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.
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.
Grants and contracts shall be awarded under paragraph (1) on a competitive basis.
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.
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.
In awarding grants and contracts under this subsection the Secretary shall give appropriate consideration to institutions of higher education with limited enrollment.
There are authorized to be appropriated to carry out this subsection such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.
(Pub. L. 89–329, title I, §120, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1596; amended Pub. L. 110–315, title I, §107, Aug. 14, 2008, 122 Stat. 3093.)
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.
2008—Subsec. (a)(2)(B) to (D). Pub. L. 110–315, §107(1), added subpars. (B) and (C) and redesignated former subpar. (B) as (D).
Subsec. (e)(5). Pub. L. 110–315, §107(2), substituted “such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years” for “$5,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years”.
Subsec. (f). Pub. L. 110–315, §107(3), struck out subsec. (f) which related to National Recognition Awards for outstanding alcohol and drug abuse prevention programs.
There are authorized to be appropriated such sums as may be necessary for fiscal year 2009 and for each succeeding fiscal year 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.
There are authorized to be appropriated such sums as may be necessary for fiscal year 2009 and for each succeeding fiscal year 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.
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.
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.
(Pub. L. 89–329, title I, §121, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1601; amended Pub. L. 110–315, title I, §108, Aug. 14, 2008, 122 Stat. 3094.)
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 (§1132b et seq.), B (§1132c et seq.), C (§1132d et seq.), and D (§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, §§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 (§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, §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 (§1139 et seq.) relating to urban community service.
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, §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.
2008—Subsec. (a). Pub. L. 110–315 substituted “2009 and for each succeeding fiscal year” for “1999 and for each of the 4 succeeding fiscal years” in pars. (1) and (2).
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.
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.
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.
(Pub. L. 89–329, title I, §122, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1601.)
Subchapter VII of this chapter, referred to in text, was amended, effective Oct. 1, 1992, by Pub. L. 102–325, title VII, §§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, §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.
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, §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.
The Secretary shall maintain information and resources on the Department's website to assist students, families, and employers in understanding what a diploma mill is and how to identify and avoid diploma mills.
The Secretary shall continue to collaborate with the United States Postal Service, the Federal Trade Commission, the Department of Justice (including the Federal Bureau of Investigation), the Internal Revenue Service, and the Office of Personnel Management to maximize Federal efforts to—
(1) prevent, identify, and prosecute diploma mills; and
(2) broadly disseminate to the public information about diploma mills, and resources to identify diploma mills.
(Pub. L. 89–329, title I, §123, as added Pub. L. 110–315, title I, §109, Aug. 14, 2008, 122 Stat. 3094.)
No Federal funds received under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) [and 42 U.S.C. 2751 et seq.] by an institution of higher education or other postsecondary educational institution may be used to pay any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any Federal action described in subsection (b).
The prohibition in subsection (a) applies with respect to the following Federal actions:
(1) The awarding of any Federal contract.
(2) The making of any Federal grant.
(3) The making of any Federal loan.
(4) The entering into of any Federal cooperative agreement.
(5) The extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
No Federal student aid funding under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) [and 42 U.S.C. 2751 et seq.] may be used to hire a registered lobbyist or pay any person or entity for securing an earmark.
Each institution of higher education or other postsecondary educational institution receiving Federal funding under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) [and 42 U.S.C. 2751 et seq.], as a condition for receiving such funding, shall annually certify to the Secretary of Education that the requirements of subsections (a) through (c) have been met.
The Secretary of Education shall take such actions as are necessary to ensure that the provisions of this section are implemented and enforced.
(Pub. L. 110–315, title I, §119, Aug. 14, 2008, 122 Stat. 3117.)
The Higher Education Act of 1965, referred to in subsecs. (a), (c), and (d), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219, which is classified generally to this chapter and part C (§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.
Section was enacted as part of the Higher Education Opportunity Act, and not as part of the Higher Education Act of 1965 which comprises this chapter.
A prior section 1012, Pub. L. 89–329, title I, §112, as added Pub. L. 99–498, title I, §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, §112, as added Pub. L. 96–374, title I, §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, §113, as added Pub. L. 99–498, title I, §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, §113, as added Pub. L. 96–374, title I, §101(a), Oct. 3, 1980, 94 Stat. 1378; amended Pub. L. 97–300, title I, §183, Oct. 13, 1982, 96 Stat. 1357; Pub. L. 98–524, §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, §114, as added Pub. L. 99–498, title I, §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, §114, as added Pub. L. 96–374, title I, §101(a), Oct. 3, 1980, 94 Stat. 1379; amended Pub. L. 97–300, title I, §183, Oct. 13, 1982, 96 Stat. 1357; Pub. L. 98–524, §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.
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.
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.
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)(ii) 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 authorizing committees 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.
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.
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.
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.
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.
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.
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.
The Secretary shall display a link to the Federal student financial aid website of the Department in a prominent place on the homepage of the Department's website.
The Secretary shall continue to improve the usefulness and accessibility of the information provided by the Department on college planning and student financial aid.
The Secretary shall continue to make the availability of the information on the Federal student financial aid website of the Department widely known, through a major media campaign and other forms of communication.
As a part of the efforts required under this subsection, the Secretary shall create one website accessible from the Department's website that fulfills the requirements under subsections (b), (f), and (g).
The Secretary, in coordination with the Secretary of Defense and the Secretary of Veterans Affairs, shall create a searchable website that—
(A) contains information, in simple and understandable terms, about all Federal and State student financial assistance, readmission requirements under section 1091c of this title, and other student services, for which members of the Armed Forces (including members of the National Guard and Reserves), veterans, and the dependents of such members or veterans may be eligible; and
(B) is easily accessible through the website described in subsection (e)(3).
Not later than one year after August 14, 2008, the Secretary shall make publicly available the Armed Forces information website described in paragraph (1).
The Secretary, in coordination with the Secretary of Defense and the Secretary of Veterans Affairs, shall make the availability of the Armed Forces information website described in paragraph (1) widely known to members of the Armed Forces (including members of the National Guard and Reserves), veterans, the dependents of such members or veterans, States, institutions of higher education, and the general public.
In this subsection, the term “Federal and State student financial assistance” means any grant, loan, work assistance, tuition assistance, scholarship, fellowship, or other form of financial aid for pursuing a postsecondary education that is—
(A) administered, sponsored, or supported by the Department of Education, the Department of Defense, the Department of Veterans Affairs, or a State; and
(B) available to members of the Armed Forces (including members of the National Guard and Reserves), veterans, or the dependents of such members or veterans.
For purposes of this subsection, the term “nondepartmental student financial assistance program” means any grant, loan, scholarship, fellowship, or other form of financial aid for students pursuing a postsecondary education that is—
(A) distributed directly to the student or to the student's account at an institution of higher education; and
(B) operated, sponsored, or supported by a Federal department or agency other than the Department of Education.
The Secretary shall ensure that—
(A) not later than 90 days after the Secretary receives the information required under paragraph (3), the eligibility requirements, application procedures, financial terms and conditions, and other relevant information for each nondepartmental student financial assistance program are searchable and accessible through the Federal student financial aid website in a manner that is simple and understandable for students and the students’ families; and
(B) the website displaying the information described in subparagraph (A) includes a link to the National Database on Financial Assistance for the Study of Science, Technology, Engineering, and Mathematics pursuant to paragraph (4), and the information on military benefits under subsection (f), once such Database and information are available.
The Secretary shall request all Federal departments and agencies to provide the information described in paragraph (2)(A), and each Federal department or agency shall—
(A) promptly respond to surveys or other requests from the Secretary for the information described in such paragraph; and
(B) identify for the Secretary any nondepartmental student financial assistance program operated, sponsored, or supported by such Federal department or agency.
The Secretary shall establish and maintain, on the website described in subsection (e)(3), a National Database on Financial Assistance for the Study of Science, Technology, Engineering, and Mathematics (in this paragraph referred to as the “STEM Database”). The STEM Database shall consist of information on scholarships, fellowships, and other programs of Federal, State, local, and, to the maximum extent practicable, private financial assistance available for the study of science, technology, engineering, or mathematics at the postsecondary and postbaccalaureate levels.
The information maintained on the STEM Database shall be displayed on the website in the following manner:
The STEM Database shall provide separate information for each of the fields of science, technology, engineering, and mathematics, and for postsecondary and postbaccalaureate programs of financial assistance.
The STEM Database shall provide specific information on any program of financial assistance that is targeted to individuals based on financial need, merit, or student characteristics.
The STEM Database shall provide—
(I) standard contact information that an interested person may use to contact a sponsor of any program of financial assistance included in the STEM Database; and
(II) if such sponsor maintains a public website, a link to the website.
The STEM Database shall—
(I) have a search capability that permits an individual to search for information on the basis of each category of the information provided through the STEM Database and on the basis of combinations of categories of the information provided, including—
(aa) whether the financial assistance is need- or merit-based; and
(bb) by relevant academic majors; and
(II) have a match capability that—
(aa) searches the STEM Database for all financial assistance opportunities for which an individual may be qualified to apply, based on the student characteristics provided by such individual; and
(bb) provides information to an individual for only those opportunities for which such individual is qualified, based on the student characteristics provided by such individual.
The STEM Database shall provide, to the users of the STEM Database—
(I) a recommendation that students and families should carefully review all of the application requirements prior to applying for any aid or program of student financial assistance; and
(II) a disclaimer that the non-Federal programs of student financial assistance presented in the STEM Database are not provided or endorsed by the Department or the Federal Government.
In carrying out this paragraph, the Secretary shall—
(i) consult with public and private sources of scholarships, fellowships, and other programs of student financial assistance; and
(ii) make easily available a process for such entities to provide regular and updated information about the scholarships, fellowships, or other programs of student financial assistance.
In carrying out the requirements of this paragraph, the Secretary is authorized to enter into a contract with a private entity with demonstrated expertise in creating and maintaining databases such as the one required under this paragraph, under which contract the entity shall furnish, and regularly update, all of the information required to be maintained on the STEM Database.
The Secretary shall take such actions, on an ongoing basis, as may be necessary to disseminate information under this subsection and to encourage the use of the information by interested parties, including sending notices to secondary schools and institutions of higher education.
No fee shall be charged to any individual to access—
(1) a database or website of the Department that provides information about higher education programs or student financial assistance, including the College Navigator website (or successor website) and the websites and databases described in this section and section 1015a of this title; or
(2) information about higher education programs or student financial assistance available through a database or website of the Department.
(Pub. L. 89–329, title I, §131, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1602; amended Pub. L. 110–315, title I, §§103(b)(1), 110, Aug. 14, 2008, 122 Stat. 3088, 3094; Pub. L. 111–39, title I, §101(b)(3), July 1, 2009, 123 Stat. 1935.)
A prior section 1015, Pub. L. 89–329, title I, §131, as added Pub. L. 102–325, title I, §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, §115, as added Pub. L. 99–498, title I, §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, §115, as added Pub. L. 96–374, title I, §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, §131, as added Pub. L. 94–482, title I, §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, §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.
2009—Subsec. (a)(3)(A)(iii)(I). Pub. L. 111–39 substituted “section 1078(a)(2)(C)(ii)” for “section 1078(a)(2)(C)(i)”.
2008—Subsec. (a)(3)(B). Pub. L. 110–315, §103(b)(1), substituted “authorizing committees” for “Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives”.
Subsecs. (d), (e). Pub. L. 110–315, §110(a), added subsecs. (d) and (e) and struck out former subsec. (d), which required the Secretary to survey student aid recipients on a regular cycle, but not less than once every 3 years.
Subsecs. (f), (g). Pub. L. 110–315, §110(b), added subsecs. (f) and (g).
Subsec. (h). Pub. L. 110–315, §110(c), added subsec. (h).
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.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 105–244, title VIII, §803, Oct. 7, 1998, 112 Stat. 1805, which required the Secretary of Education to conduct a study to analyze the distribution and increase in student-related debt, submit a report to congressional committees, and include certain information as part of the comparative information provided to families about the costs of higher education, was repealed by Pub. L. 110–315, title IX, §931(1), Aug. 14, 2008, 122 Stat. 3456.
In this section:
The term “College Navigator website” means the College Navigator website operated by the Department and includes any successor website.
The term “cost of attendance” means the average annual cost of tuition and fees, room and board, books, supplies, and transportation for an institution of higher education for a first-time, full-time undergraduate student enrolled in the institution.
The term “net price” means the average yearly price actually charged to first-time, full-time undergraduate students receiving student aid at an institution of higher education after deducting such aid, which shall be determined by calculating the difference between—
(A) the institution's cost of attendance for the year for which the determination is made; and
(B) the quotient of—
(i) the total amount of need-based grant aid and merit-based grant aid, from Federal, State, and institutional sources, provided to such students enrolled in the institution for such year; and
(ii) the total number of such students receiving such need-based grant aid or merit-based grant aid for such year.
The term “tuition and fees” means the average annual cost of tuition and fees for an institution of higher education for first-time, full-time undergraduate students enrolled in the institution.
In making the calculations regarding cost of attendance, net price, and tuition and fees under this section with respect to a public institution of higher education, the Secretary shall calculate the cost of attendance, net price, and tuition and fees at such institution in the manner described in subsection (a), except that—
(1) the cost of attendance, net price, and tuition and fees shall be calculated for first-time, full-time undergraduate students enrolled in the institution who are residents of the State in which such institution is located; and
(2) in determining the net price, the average need-based grant aid and merit-based grant aid described in subsection (a)(3)(B) shall be calculated based on the average total amount of such aid received by first-time, full-time undergraduate students who are residents of the State in which such institution is located, divided by the total number of such resident students receiving such need-based grant aid or merit-based grant aid at such institution.
Beginning July 1, 2011, the Secretary shall make publicly available on the College Navigator website, in a manner that is sortable and searchable by State, the following:
(A) A list of the five percent of institutions in each category described in subsection (d) that have the highest tuition and fees for the most recent academic year for which data are available.
(B) A list of the five percent of institutions in each such category that have the highest net price for the most recent academic year for which data are available.
(C) A list of the five percent of institutions in each such category that have the largest increase, expressed as a percentage change, in tuition and fees over the most recent three academic years for which data are available, using the first academic year of the three-year period as the base year to compute such percentage change.
(D) A list of the five percent of institutions in each such category that have the largest increase, expressed as a percentage change, in net price over the most recent three academic years for which data are available, using the first academic year of the three-year period as the base year to compute such percentage change.
(E) A list of the ten percent of institutions in each such category that have the lowest tuition and fees for the most recent academic year for which data are available.
(F) A list of the ten percent of institutions in each such category that have the lowest net price for the most recent academic year for which data are available.
The Secretary shall annually update the lists described in paragraph (1) on the College Navigator website.
The lists described in subsection (c)(1) shall be compiled according to the following categories of institutions that participate in programs under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42:
(1) Four-year public institutions of higher education.
(2) Four-year private, nonprofit institutions of higher education.
(3) Four-year private, for-profit institutions of higher education.
(4) Two-year public institutions of higher education.
(5) Two-year private, nonprofit institutions of higher education.
(6) Two-year private, for-profit institutions of higher education.
(7) Less than two-year public institutions of higher education.
(8) Less than two-year private, nonprofit institutions of higher education.
(9) Less than two-year private, for-profit institutions of higher education.
If an institution of higher education is included on a list described in subparagraph (C) or (D) of subsection (c)(1), the institution shall submit to the Secretary a report containing the following information:
(A) A description of the major areas in the institution's budget with the greatest cost increases.
(B) An explanation of the cost increases described in subparagraph (A).
(C) A description of the steps the institution will take toward the goal of reducing costs in the areas described in subparagraph (A).
(D) In the case of an institution that is included on the same list under subparagraph (C) or (D) of subsection (c)(1) for two or more consecutive years, a description of the progress made on the steps described in subparagraph (C) of this paragraph that were included in the institution's report for the previous year.
(E) If the determination of any cost increase described in subparagraph (A) is not within the exclusive control of the institution—
(i) an explanation of the extent to which the institution participates in determining such cost increase;
(ii) the identification of the agency or instrumentality of State government responsible for determining such cost increase; and
(iii) any other information the institution considers relevant to the report.
The Secretary shall—
(A) issue an annual report that summarizes all of the reports by institutions required under paragraph (1) to the authorizing committees; and
(B) publish such report on the College Navigator website.
An institution shall not be placed on a list described in subparagraph (C) or (D) of subsection (c)(1), and shall not be subject to the reporting required under subsection (e), if the dollar amount of the institution's increase in tuition and fees, or net price, as applicable, is less than $600 for the three-year period described in such subparagraph.
Beginning in 2014, and every three years thereafter, the Secretary shall update the dollar amount described in paragraph (1) based on annual increases in inflation, using the Consumer Price Index for each of the three most recent preceding years.
The Secretary shall annually report on the College Navigator website, in charts for each State, comparisons of—
(1) the percentage change in spending by such State per full-time equivalent student at all public institutions of higher education in such State, for each of the five most recent preceding academic years;
(2) the percentage change in tuition and fees for such students for all public institutions of higher education in such State for each of the five most recent preceding academic years; and
(3) the percentage change in the total amount of need-based aid and merit-based aid provided by such State to full-time students enrolled in the public institutions of higher education in the State for each of the five most recent preceding academic years.
Not later than one year after August 14, 2008, the Secretary shall, in consultation with institutions of higher education and other appropriate experts, develop a net price calculator to help current and prospective students, families, and other consumers estimate the individual net price of an institution of higher education for a student. The calculator shall be developed in a manner that enables current and prospective students, families, and consumers to determine an estimate of a current or prospective student's individual net price at a particular institution.
For purposes of this subsection, an individual net price of an institution of higher education shall be calculated in the same manner as the net price of such institution is calculated under subsection (a)(3), except that the cost of attendance and the amount of need-based and merit-based aid available shall be calculated for the individual student as much as practicable.
Not later than two years after the date on which the Secretary makes the calculator developed under paragraph (1) available to institutions of higher education, each institution of higher education that receives Federal funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 shall make publicly available on the institution's website a net price calculator to help current and prospective students, families, and other consumers estimate a student's individual net price at such institution of higher education. Such calculator may be a net price calculator developed—
(A) by the Department pursuant to paragraph (1); or
(B) by the institution of higher education, if the institution's calculator includes, at a minimum, the same data elements included in the calculator developed under paragraph (1).
Estimates of an individual net price determined using a net price calculator required under paragraph (3) shall be accompanied by a clear and conspicuous notice—
(A) stating that the estimate—
(i) does not represent a final determination, or actual award, of financial assistance;
(ii) shall not be binding on the Secretary, the institution of higher education, or the State; and
(iii) may change;
(B) stating that the student must complete the Free Application for Federal Student Aid described in section 1090 of this title in order to be eligible for, and receive, an actual financial aid award that includes Federal grant, loan, or work-study assistance under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42; and
(C) including a link to the website of the Department that allows students to access the Free Application for Federal Student Aid described in section 1090 of this title.
Not later than one year after August 14, 2008, the Secretary shall make publicly available on the College Navigator website, in simple and understandable terms, the following information about each institution of higher education that participates in programs under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, for the most recent academic year for which satisfactory data are available:
(A) A statement of the institution's mission.
(B) The total number of undergraduate students who applied to, were admitted by, and enrolled in the institution.
(C) For institutions that require SAT or ACT scores to be submitted, the reading, writing, mathematics, and combined scores on the SAT or ACT, as applicable, for the middle 50 percent range of the institution's freshman class.
(D) The number of first-time, full-time, and part-time students enrolled at the institution, at the undergraduate and (if applicable) graduate levels.
(E) The number of degree- or certificate-seeking undergraduate students enrolled at the institution who have transferred from another institution.
(F) The percentages of male and female undergraduate students enrolled at the institution.
(G) Of the first-time, full-time, degree- or certificate-seeking undergraduate students enrolled at the institution—
(i) the percentage of such students who are from the State in which the institution is located;
(ii) the percentage of such students who are from other States; and
(iii) the percentage of such students who are international students.
(H) The percentages of first-time, full-time, degree- or certificate-seeking students enrolled at the institution, disaggregated by race and ethnic background.
(I) The percentage of undergraduate students enrolled at the institution who are formally registered with the office of disability services of the institution (or the equivalent office) as students with disabilities, except that if such percentage is three percent or less, the institution shall report “three percent or less”.
(J) The percentages of first-time, full-time, degree- or certificate-seeking undergraduate students enrolled at the institution who obtain a degree or certificate within—
(i) the normal time for completion of, or graduation from, the student's program;
(ii) 150 percent of the normal time for completion of, or graduation from, the student's program; and
(iii) 200 percent of the normal time for completion of, or graduation from, the student's program;
(K) The number of certificates, associate degrees, baccalaureate degrees, master's degrees, professional degrees, and doctoral degrees awarded by the institution.
(L) The undergraduate major areas of study at the institution with the highest number of degrees awarded.
(M) The student-faculty ratio, the number of full-time and part-time faculty, and the number of graduate assistants with primarily instructional responsibilities, at the institution.
(N)(i) The cost of attendance for first-time, full-time undergraduate students enrolled in the institution who live on campus;
(ii) the cost of attendance for first-time, full-time undergraduate students enrolled in the institution who live off campus; and
(iii) in the case of a public institution of higher education and notwithstanding subsection (b)(1), the costs described in clauses (i) and (ii), for—
(I) first-time, full-time students enrolled in the institution who are residents of the State in which the institution is located; and
(II) first-time, full-time students enrolled in the institution who are not residents of such State.
(O) The average annual grant amount (including Federal, State, and institutional aid) awarded to a first-time, full-time undergraduate student enrolled at the institution who receives financial aid.
(P) The average annual amount of Federal student loans provided through the institution to undergraduate students enrolled at the institution.
(Q) The total annual grant aid awarded to undergraduate students enrolled at the institution, from the Federal Government, a State, the institution, and other sources known by the institution.
(R) The percentage of first-time, full-time undergraduate students enrolled at the institution receiving Federal, State, and institutional grants, student loans, and any other type of student financial assistance known by the institution, provided publicly or through the institution, such as Federal work-study funds.
(S) The number of students enrolled at the institution receiving Federal Pell Grants.
(T) The institution's cohort default rate, as defined under section 1085(m) of this title.
(U) The information on campus safety required to be collected under section 1092(i) of this title.
(V) A link to the institution's website that provides, in an easily accessible manner, the following information:
(i) Student activities offered by the institution.
(ii) Services offered by the institution for individuals with disabilities.
(iii) Career and placement services offered by the institution to students during and after enrollment.
(iv) Policies of the institution related to transfer of credit from other institutions.
(W) A link to the appropriate section of the Bureau of Labor Statistics website that provides information on regional data on starting salaries in all major occupations.
(X) Information required to be submitted under paragraph (4) and a link to the institution pricing summary page described in paragraph (5).
(Y) In the case of an institution that was required to submit a report under subsection (e)(1), a link to such report.
(Z) The availability of alternative tuition plans, which may include guaranteed tuition plans.
The Secretary shall annually update the information described in paragraph (1) on the College Navigator website.
The Secretary shall regularly consult with current and prospective college students, family members of such students, institutions of higher education, and other experts to improve the usefulness and relevance of the College Navigator website, with respect to the presentation of the consumer information collected in paragraph (1).
The Commissioner for Education Statistics shall continue to update and improve the Integrated Postsecondary Education Data System (referred to in this section as “IPEDS”), including the reporting of information by institutions and the timeliness of the data collected.
The Secretary shall make publicly available on the College Navigator website in a sortable and searchable format a list of all institutions of higher education that participate in programs under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, which list shall, for each institution, include the following:
(i) The tuition and fees for each of the three most recent academic years for which data are available.
(ii) The net price for each of the three most recent available academic years for which data are available.
(iii)(I) During the period beginning July 1, 2010, and ending June 30, 2013, the net price for students receiving Federal student financial aid under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, disaggregated by the income categories described in paragraph (6), for the most recent academic year for which data are available.
(II) Beginning July 1, 2013, the net price for students receiving Federal student financial aid under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, disaggregated by the income categories described in paragraph (6), for each of the three most recent academic years for which data are available.
(iv) The average annual percentage change and average annual dollar change in such institution's tuition and fees for each of the three most recent academic years for which data are available.
(v) The average annual percentage change and average annual dollar change in such institution's net price for each of the three most recent preceding academic years for which data are available.
(vi) A link to the webpage on the College Navigator website that provides the information described in paragraph (1) for the institution.
The Secretary shall annually update the lists described in subparagraph (A) on the College Navigator website.
For purposes of reporting the information required under this subsection, the following income categories shall apply for students who receive Federal student financial aid under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42:
(i) $0–30,000.
(ii) $30,001–48,000.
(iii) $48,001–75,000.
(iv) $75,001–110,000.
(v) $110,001 and more.
The Secretary may adjust the income categories listed in subparagraph (A) using the Consumer Price Index if the Secretary determines such adjustment is necessary.
Not later than one year after August 14, 2008, the Secretary shall, in consultation with institutions of higher education, financial planners, and other appropriate experts, develop a multi-year tuition calculator to help current and prospective students, families of such students, and other consumers estimate the amount of tuition an individual may pay to attend an institution of higher education in future years.
The multi-year tuition calculator described in paragraph (1) shall—
(A) allow an individual to select an institution of higher education for which the calculation shall be made;
(B) calculate an estimate of tuition and fees for each year of the normal duration of the program of study at such institution by—
(i) using the tuition and fees for such institution, as reported under subsection (i)(5)(A)(i), for the most recent academic year for which such data are reported; and
(ii) determining an estimated annual percentage change for each year for which the calculation is made, based on the annual percentage change in such institution's tuition and fees, as reported under subsection (i)(5)(A)(iv), for the most recent three-year period for which such data are reported;
(C) calculate an estimate of the total amount of tuition and fees to complete a program of study at such institution, based on the normal duration of such program, using the estimate calculated under subparagraph (B) for each year of the program of study;
(D) provide the individual with the option to replace the estimated annual percentage change described in subparagraph (B)(ii) with an alternative annual percentage change specified by the individual, and calculate an estimate of tuition and fees for each year and an estimate of the total amount of tuition and fees using the alternative percentage change;
(E) in the case of an institution that offers a multi-year tuition guarantee program, allow the individual to have the estimates of tuition and fees described in subparagraphs (B) and (C) calculated based on the provisions of such guarantee program for the tuition and fees charged to a student, or cohort of students, enrolled for the duration of the program of study; and
(F) include any other features or information determined to be appropriate by the Secretary.
The multi-year tuition calculator described in paragraph (1) shall be available on the College Navigator website and shall allow current and prospective students, families of such students, and consumers to compare information and estimates under this subsection for multiple institutions of higher education.
Each calculation of estimated tuition and fees made using the multi-year tuition calculator described in paragraph (1) shall be accompanied by a clear and conspicuous notice—
(A) stating that the calculation—
(i) is only an estimate and not a guarantee of the actual amount the student may be charged;
(ii) is not binding on the Secretary, the institution of higher education, or the State; and
(iii) may change, subject to the availability of financial assistance, State appropriations, and other factors;
(B) stating that the student must complete the Free Application for Federal Student Aid described in section 1090 of this title in order to be eligible for, and receive, an actual financial aid award that includes Federal grant, loan, or work-study assistance under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42; and
(C) including a link to the website of the Department that allows students to access the Free Application for Federal Student Aid described in section 1090 of this title.
The Secretary, acting through the Commissioner for Education Statistics, shall conduct, on a State-by-State basis, a survey of recipients of Federal student financial aid under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42—
(A) to identify the population of students receiving such Federal student financial aid;
(B) to describe the income distribution and other socioeconomic characteristics of recipients of such Federal student financial aid;
(C) to describe the combinations of aid from Federal, State, and private sources received by such recipients from all income categories;
(D) to describe the—
(i) debt burden of such loan recipients, and their capacity to repay their education debts; and
(ii) the impact of such debt burden on the recipients’ course of study and post-graduation plans;
(E) to describe the impact of the cost of attendance of postsecondary education in the determination by students of what institution of higher education to attend; and
(F) to describe how the costs of textbooks and other instructional materials affect the costs of postsecondary education for students.
The survey shall be conducted on a regular cycle and not less often than once every four years.
The survey shall be representative of students from all types of institutions, including full-time and part-time students, undergraduate, graduate, and professional students, and current and former students.
The Commissioner for Education Statistics shall disseminate to the public, in printed and electronic form, the information resulting from the survey.
The Secretary is authorized to issue such regulations as may be necessary to carry out this section.
(Pub. L. 89–329, title I, §132, as added Pub. L. 110–315, title I, §111, Aug. 14, 2008, 122 Stat. 3098.)
Title IV, referred to in the heading of subsec. (i)(1), means title IV of the Higher Education Act of 1965, Pub. L. 89–329, which is classified generally to subchapter IV of this chapter and part C (§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.
A prior section 1015a, Pub. L. 89–329, title I, §132, as added Pub. L. 102–325, title I, §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, §132, as added Pub. L. 94–482, title I, §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.
The purpose of this section is to ensure that students have access to affordable course materials by decreasing costs to students and enhancing transparency and disclosure with respect to the selection, purchase, sale, and use of course materials. It is the intent of this section to encourage all of the involved parties, including faculty, students, administrators, institutions of higher education, bookstores, distributors, and publishers, to work together to identify ways to decrease the cost of college textbooks and supplemental materials for students while supporting the academic freedom of faculty members to select high quality course materials for students.
In this section:
The term “bundle” means one or more college textbooks or other supplemental materials that may be packaged together to be sold as course materials for one price.
The term “college textbook” means a textbook or a set of textbooks, used for, or in conjunction with, a course in postsecondary education at an institution of higher education.
The term “course schedule” means a listing of the courses or classes offered by an institution of higher education for an academic period, as defined by the institution.
The term “custom textbook”—
(A) means a college textbook that is compiled by a publisher at the direction of a faculty member or other person or adopting entity in charge of selecting course materials at an institution of higher education; and
(B) may include, alone or in combination, items such as selections from original instructor materials, previously copyrighted publisher materials, copyrighted third-party works, and elements unique to a specific institution, such as commemorative editions.
The term “institution of higher education” has the meaning given the term in section 1002 of this title.
The term “integrated textbook” means a college textbook that is—
(A) combined with materials developed by a third party and that, by third-party contractual agreement, may not be offered by publishers separately from the college textbook with which the materials are combined; or
(B) combined with other materials that are so interrelated with the content of the college textbook that the separation of the college textbook from the other materials would render the college textbook unusable for its intended purpose.
The term “publisher” means a publisher of college textbooks or supplemental materials involved in or affecting interstate commerce.
The term “substantial content” means parts of a college textbook such as new chapters, new material covering additional eras of time, new themes, or new subject matter.
The term “supplemental material” means educational material developed to accompany a college textbook that—
(A) may include printed materials, computer disks, website access, and electronically distributed materials; and
(B) is not being used as a component of an integrated textbook.
When a publisher provides a faculty member or other person or adopting entity in charge of selecting course materials at an institution of higher education receiving Federal financial assistance with information regarding a college textbook or supplemental material, the publisher shall include, with any such information and in writing (which may include electronic communications), the following:
(A) The price at which the publisher would make the college textbook or supplemental material available to the bookstore on the campus of, or otherwise associated with, such institution of higher education and, if available, the price at which the publisher makes the college textbook or supplemental material available to the public.
(B) The copyright dates of the three previous editions of such college textbook, if any.
(C) A description of the substantial content revisions made between the current edition of the college textbook or supplemental material and the previous edition, if any.
(D)(i) Whether the college textbook or supplemental material is available in any other format, including paperback and unbound; and
(ii) for each other format of the college textbook or supplemental material, the price at which the publisher would make the college textbook or supplemental material in the other format available to the bookstore on the campus of, or otherwise associated with, such institution of higher education and, if available, the price at which the publisher makes such other format of the college textbook or supplemental material available to the public.
A publisher that sells a college textbook and any supplemental material accompanying such college textbook as a single bundle shall also make available the college textbook and each supplemental material as separate and unbundled items, each separately priced.
To the maximum extent practicable, a publisher shall provide the information required under this subsection with respect to the development and provision of custom textbooks.
To the maximum extent practicable, each institution of higher education receiving Federal financial assistance shall—
(1) disclose, on the institution's Internet course schedule and in a manner of the institution's choosing, the International Standard Book Number and retail price information of required and recommended college textbooks and supplemental materials for each course listed in the institution's course schedule used for preregistration and registration purposes, except that—
(A) if the International Standard Book Number is not available for such college textbook or supplemental material, then the institution shall include in the Internet course schedule the author, title, publisher, and copyright date for such college textbook or supplemental material; and
(B) if the institution determines that the disclosure of the information described in this subsection is not practicable for a college textbook or supplemental material, then the institution shall so indicate by placing the designation “To Be Determined” in lieu of the information required under this subsection; and
(2) if applicable, include on the institution's written course schedule a notice that textbook information is available on the institution's Internet course schedule, and the Internet address for such schedule.
An institution of higher education receiving Federal financial assistance shall make available to a college bookstore that is operated by, or in a contractual relationship or otherwise affiliated with, the institution, as soon as is practicable upon the request of such college bookstore, the most accurate information available regarding—
(1) the institution's course schedule for the subsequent academic period; and
(2) for each course or class offered by the institution for the subsequent academic period—
(A) the information required by subsection (d)(1) for each college textbook or supplemental material required or recommended for such course or class;
(B) the number of students enrolled in such course or class; and
(C) the maximum student enrollment for such course or class.
An institution disclosing the information required by subsection (d)(1) is encouraged to disseminate to students information regarding—
(1) available institutional programs for renting textbooks or for purchasing used textbooks;
(2) available institutional guaranteed textbook buy-back programs;
(3) available institutional alternative content delivery programs; or
(4) other available institutional cost-saving strategies.
Not later than July 1, 2013, the Comptroller General of the United States shall report to the authorizing committees on the implementation of this section by institutions of higher education, college bookstores, and publishers. The report shall particularly examine—
(1) the availability of college textbook information on course schedules;
(2) the provision of pricing information to faculty of institutions of higher education by publishers;
(3) the use of bundled and unbundled material in the college textbook marketplace, including the adoption of unbundled materials by faculty and the use of integrated textbooks by publishers; and
(4) the implementation of this section by institutions of higher education, including the costs and benefits to such institutions and to students.
Nothing in this section shall be construed to supercede the institutional autonomy or academic freedom of instructors involved in the selection of college textbooks, supplemental materials, and other classroom materials.
The Secretary shall not promulgate regulations with respect to this section.
(Pub. L. 89–329, title I, §133, as added Pub. L. 110–315, title I, §112(a), Aug. 14, 2008, 122 Stat. 3107.)
A prior section 1015b, Pub. L. 89–329, title I, §133, as added Pub. L. 102–325, title I, §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, §133, as added Pub. L. 94–482, title I, §101(g)(3), Oct. 12, 1976, 90 Stat. 2087; amended Pub. L. 95–43, §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.
Pub. L. 110–315, title I, §112(b), Aug. 14, 2008, 122 Stat. 3110, provided that: “The amendment made by subsection (a) [enacting this section] shall take effect on July 1, 2010.”
Pub. L. 110–315, title VIII, §803, Aug. 14, 2008, 122 Stat. 3449, provided that:
“(a)
“(b)
“(c)
“(1) purchase of course materials that the entity will make available by rent to students;
“(2) any equipment or software necessary for the conduct of a rental program;
“(3) hiring staff needed for the conduct of a rental program, with priority given to hiring enrolled undergraduate students; and
“(4) building or acquiring extra storage space dedicated to course materials for rent.
“(d)
“(1)
“(2)
“(e)
Except as described in subsection (b), nothing in this chapter and part C of subchapter I of chapter 34 of title 42 shall be construed to authorize the development, implementation, or maintenance of a Federal database of personally identifiable information on individuals receiving assistance under this chapter and part C of subchapter I of chapter 34 of title 42, attending institutions receiving assistance under this chapter and part C of subchapter I of chapter 34 of title 42, or otherwise involved in any studies or other collections of data under this chapter and part C of subchapter I of chapter 34 of title 42, including a student unit record system, an education bar code system, or any other system that tracks individual students over time.
The provisions of subsection (a) shall not apply to a system (or a successor system) that—
(1) is necessary for the operation of programs authorized by subchapter II, IV, or VII or part C of subchapter I of chapter 34 of title 42; and
(2) was in use by the Secretary, directly or through a contractor, as of the day before August 14, 2008.
Nothing in this chapter and part C of subchapter I of chapter 34 of title 42 shall prohibit a State or a consortium of States from developing, implementing, or maintaining State-developed databases that track individuals over time, including student unit record systems that contain information related to enrollment, attendance, graduation and retention rates, student financial assistance, and graduate employment outcomes.
(Pub. L. 89–329, title I, §134, as added Pub. L. 110–315, title I, §113, Aug. 14, 2008, 122 Stat. 3110.)
A prior section 1015c, Pub. L. 89–329, title I, §134, as added Pub. L. 102–325, title I, §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, §134, as added Pub. L. 94–482, title I, §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.
In the case of a member of the armed forces who is on active duty for a period of more than 30 days and whose domicile or permanent duty station is in a State that receives assistance under this chapter and part C of subchapter I of chapter 34 of title 42, such State shall not charge such member (or the spouse or dependent child of such member) tuition for attendance at a public institution of higher education in the State at a rate that is greater than the rate charged for residents of the State.
If a member of the armed forces (or the spouse or dependent child of a member) pays tuition at a public institution of higher education in a State at a rate determined by subsection (a), the provisions of subsection (a) shall continue to apply to such member, spouse, or dependent while continuously enrolled at that institution, notwithstanding a subsequent change in the permanent duty station of the member to a location outside the State.
This section shall take effect at each public institution of higher education in a State that receives assistance under this chapter and part C of subchapter I of chapter 34 of title 42 for the first period of enrollment at such institution that begins after July 1, 2009.
In this section, the terms “armed forces” and “active duty for a period of more than 30 days” have the meanings given those terms in section 101 of title 10.
(Pub. L. 89–329, title I, §135, as added Pub. L. 110–315, title I, §114, Aug. 14, 2008, 122 Stat. 3111.)
A prior section 1015d, Pub. L. 89–329, title I, §135, as added Pub. L. 102–325, title I, §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.
It is the purpose of this section to carry out a pilot program to assist not more than five States to develop State-level postsecondary student data systems to—
(1) improve the capacity of States and institutions of higher education to generate more comprehensive and comparable data, in order to develop better-informed educational policy at the State level and to evaluate the effectiveness of institutional performance while protecting the confidentiality of students’ personally identifiable information; and
(2) identify how to best minimize the data-reporting burden placed on institutions of higher education, particularly smaller institutions, and to maximize and improve the information institutions receive from the data systems, in order to assist institutions in improving educational practice and postsecondary outcomes.
In this section, the term “eligible entity” means—
(1) a State higher education system; or
(2) a consortium of State higher education systems, or a consortium of individual institutions of higher education, that is broadly representative of institutions in different sectors and geographic locations.
The Secretary shall award grants, on a competitive basis, to not more than five eligible entities to enable the eligible entities to—
(A) design, test, and implement systems of postsecondary student data that provide the maximum benefits to States, institutions of higher education, and State policymakers; and
(B) examine the costs and burdens involved in implementing a State-level postsecondary student data system.
A grant awarded under this section shall be for a period of not more than three years.
An eligible entity desiring a grant 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, including a description of—
(1) how the eligible entity will ensure that student privacy is protected and that individually identifiable information about students, the students’ achievements, and the students’ families remains confidential in accordance with section 1232g of this title (commonly known as the “Family Educational Rights and Privacy Act of 1974”); and
(2) how the activities funded by the grant will be supported after the three-year grant period.
A grant awarded under this section shall be used to—
(1) design, develop, and implement the components of a comprehensive postsecondary student data system with the capacity to transmit student information within a State;
(2) improve the capacity of institutions of higher education to analyze and use student data;
(3) select and define common data elements, data quality, and other elements that will enable the data system to—
(A) serve the needs of institutions of higher education for institutional research and improvement;
(B) provide students and the students’ families with useful information for decision-making about postsecondary education; and
(C) provide State policymakers with improved information to monitor and guide efforts to improve student outcomes and success in higher education;
(4) estimate costs and burdens at the institutional level for the reporting system for different types of institutions; and
(5) test the feasibility of protocols and standards for maintaining data privacy and data access.
Not later than six months after the end of the projects funded by grants awarded under this section, the Secretary shall—
(1) conduct a comprehensive evaluation of the pilot program authorized by this section; and
(2) report the Secretary's findings, as well as recommendations regarding the implementation of State-level postsecondary student data systems, to the authorizing committees.
There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.
(Pub. L. 89–329, title I, §136, as added Pub. L. 110–315, title I, §115, Aug. 14, 2008, 122 Stat. 3111; amended Pub. L. 111–39, title I, §101(b)(4), July 1, 2009, 123 Stat. 1935.)
2009—Subsec. (d)(1). Pub. L. 111–39 substituted “(commonly known as the ‘Family Educational Rights and Privacy Act of 1974’)” for “(Family Educational Rights and Privacy Act of 1974)”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
A State shall provide—
(1) for public institutions of higher education in such State for any academic year beginning on or after July 1, 2008, an amount which is equal to or greater than the average amount provided for non-capital and non-direct research and development expenses or costs by such State to such institutions of higher education during the five most recent preceding academic years for which satisfactory data are available; and
(2) for private institutions of higher education in such State for any academic year beginning on or after July 1, 2008, an amount which is equal to or greater than the average amount provided for student financial aid for paying costs associated with postsecondary education by such State to such institutions during the five most recent preceding academic years for which satisfactory data are available.
The Secretary shall take into consideration any adjustments to the calculations under subsection (a) that may be required to accurately reflect funding levels for postsecondary education in States with biennial appropriation cycles.
The Secretary shall waive the requirements of subsection (a), if the Secretary determines that such a waiver would be equitable due to exceptional or uncontrollable circumstances, such as a natural disaster or a precipitous and unforseen 1 decline in the financial resources of a State or State educational agency, as appropriate.
Notwithstanding any other provision of law, the Secretary shall withhold from any State that violates subsection (a) and does not receive a waiver pursuant to subsection (c) any amount that would otherwise be available to the State under section 1141 of this title until such State has made significant efforts to correct such violation.
(Pub. L. 89–329, title I, §137, as added Pub. L. 110–315, title I, §116, Aug. 14, 2008, 122 Stat. 3113.)
A prior section 1016, Pub. L. 89–329, title I, §121, as added Pub. L. 99–498, title I, §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, §116, as added Pub. L. 96–374, title I, §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, §122, as added Pub. L. 99–498, title I, §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, §131, as added Pub. L. 99–498, title I, §101, Oct. 17, 1986, 100 Stat. 1286; Pub. L. 102–54, §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, §117, as added Pub. L. 96–374, title I, §101(a), Oct. 3, 1980, 94 Stat. 1382; amended Pub. L. 99–386, title I, §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.
1 So in original. Probably should be “unforeseen”.
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 administrative and oversight 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.
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 and administration 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.
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 Federal student financial assistance programs authorized under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42;
(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—
(i) the administration of the systems used to administer the Federal student financial assistance programs authorized under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42; and
(ii) the updating of such systems to current technology.
Subject to paragraph (1), the PBO shall be responsible for the administration of Federal student financial assistance programs authorized under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, excluding the development of policy relating to such programs but including the following:
(A) The administrative, accounting, and financial management functions for the Federal student financial assistance programs authorized under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, including—
(i) the collection, processing, and transmission of data to students, institutions, lenders, State agencies, and other authorized parties;
(ii) the design and technical specifications for software development and procurement for systems supporting the Federal student financial assistance programs authorized 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 administration 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 the Federal student financial assistance programs authorized under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42;
(v) providing all customer service, training, and user support related to the administration of the Federal student financial assistance programs authorized under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42; and
(vi) ensuring the integrity of the Federal student financial assistance programs authorized under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42.
(B) Annual development of a budget for the activities and functions of the PBO, in consultation with the Secretary, and for consideration and inclusion in the Department's annual budget submission.
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.
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.
The PBO shall be subject to the usual and customary Federal audit procedures and to review by the Inspector General of the Department.
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.
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.
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.
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.
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:
Improving service to students and other participants in student financial aid programs authorized under under 1 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.
Reducing the costs of administering those programs.
Improving and integrating the systems that support those programs.
Developing open, common, and integrated systems for programs authorized under under 1 subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42.
Any other areas identified by the Secretary.
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 the programs administered by the PBO.
(B) Financial and performance requirements applicable to the PBO under the Chief Financial Officers 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.
The Chief Operating Officer, in preparing the report described in paragraph (2), shall establish appropriate means to consult with students, borrowers, institutions, lenders, guaranty agencies, secondary markets, and others involved in the delivery system of student aid under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42—
(A) regarding the degree of satisfaction with the delivery system; and
(B) to seek suggestions on means to improve the delivery system.
The Secretary shall, upon request, provide a briefing to the members of the authorizing committees on the steps the Department has taken to ensure—
(A) the integrity of the student loan programs; and
(B) that lenders and guaranty agencies are adhering to the requirements of subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42.
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 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.
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.
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 authorizing committees.
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.
The final agreement, and any revision to the final agreement, shall be transmitted to the authorizing committees, and made publicly available.
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.
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 (4).
Payment of a bonus under 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.
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.
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.
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.
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.
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).
A senior manager shall be removable by the Chief Operating Officer, or by the Secretary if the position of Chief Operating Officer is vacant.
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).
The Chief Operating Officer shall disseminate information about the availability and functions of the Ombudsman to students, borrowers, and potential borrowers, as well as institutions of higher education, lenders, guaranty agencies, loan servicers, and other participants in those student loan programs.
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); and
(B) compile and analyze data on borrower complaints and make appropriate recommendations.
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.
The PBO shall not be subject to any ceiling relating to the number or grade of employees.
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.
The Chief Operating Officer may appoint, without regard to the provisions of title 5 governing appointments in the competitive service, 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.
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 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.
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.
(Pub. L. 89–329, title I, §141, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1604; amended Pub. L. 110–315, title I, §§103(b)(2), 117, Aug. 14, 2008, 122 Stat. 3088, 3114; Pub. L. 111–39, title I, §101(b)(5), July 1, 2009, 123 Stat. 1935.)
The Chief Financial Officers Act of 1990, referred to in subsec. (c)(2)(B), is 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.
A prior section 1018, Pub. L. 89–329, title I, §141, as added Pub. L. 100–418, title VI, §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, §118, as added Pub. L. 96–374, title I, §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.
2009—Subsec. (c)(3). Pub. L. 111–39, §101(b)(5)(A), substituted “under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42” for “under this subchapter” in introductory provisions.
Subsec. (d)(3). Pub. L. 111–39, §101(b)(5)(B), substituted “authorizing committees” for “appropriate committees of Congress” in concluding provisions.
2008—Subsec. (a)(1). Pub. L. 110–315, §117(1)(A), substituted “administrative and oversight” for “operational”.
Subsec. (a)(2)(D). Pub. L. 110–315, §117(1)(B), substituted “and administration” for “of the operational functions”.
Subsec. (b)(1)(A). Pub. L. 110–315, §117(2)(A)(i), substituted “the Federal student financial assistance programs authorized under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42” for “the information systems administered by the PBO, and other functions performed by the PBO”.
Subsec. (b)(1)(C). Pub. L. 110–315, §117(2)(A)(ii), added subpar. (C) and struck out former subpar. (C) which read as follows: “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.”
Subsec. (b)(2). Pub. L. 110–315, §117(2)(B)(i), in introductory provisions, substituted “the administration of Federal” for “administration of the information and financial systems that support” and “subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42” for “this subchapter”.
Subsec. (b)(2)(A). Pub. L. 110–315, §117(2)(B)(ii)(I), substituted “for the Federal student financial assistance programs authorized under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42” for “of the delivery system for Federal student assistance” in introductory provisions.
Subsec. (b)(2)(A)(i), (ii). Pub. L. 110–315, §117(2)(B)(ii)(II), added cls. (i) and (ii) and struck out former cls. (i) and (ii) which read as follows:
“(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;”.
Subsec. (b)(2)(A)(iii). Pub. L. 110–315, §117(2)(B)(ii)(III), substituted “administration” for “delivery”.
Subsec. (b)(2)(A)(iv). Pub. L. 110–315, §117(2)(B)(ii)(IV), inserted “the Federal” after “supporting”, substituted “authorized under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42” for “under this subchapter”, and struck out “and” after the semicolon.
Subsec. (b)(2)(A)(v). Pub. L. 110–315, §117(2)(B)(ii)(V), substituted “the administration of the Federal student financial assistance programs authorized under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42; and” for “systems that support those programs.”
Subsec. (b)(2)(A)(vi). Pub. L. 110–315, §117(2)(B)(ii)(VI), added cl. (vi).
Subsec. (b)(2)(B). Pub. L. 110–315, §117(2)(B)(iii), substituted “activities and functions” for “operations and services”.
Subsec. (c). Pub. L. 110–315, §117(3)(A), substituted “Performance plan, report, and briefing” for “Performance plan and report” in heading.
Subsec. (c)(1)(C)(i). Pub. L. 110–315, §117(3)(B)(i), substituted “under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42” for “this subchapter”.
Subsec. (c)(1)(C)(iii). Pub. L. 110–315, §117(3)(B)(ii), struck out “information and delivery” after “integrating the”.
Subsec. (c)(1)(C)(iv). Pub. L. 110–315, §117(3)(B)(i), (iii), substituted “Developing” for “Developing an”, “systems” for “delivery and information system”, and “under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42” for “this subchapter”.
Subsec. (c)(2)(A). Pub. L. 110–315, §117(3)(C)(i), inserted “the” after “PBO and”.
Subsec. (c)(2)(B). Pub. L. 110–315, §117(3)(C)(ii), substituted “Officers” for “Officer”.
Subsec. (c)(3). Pub. L. 110–315, §117(3)(D), inserted “students,” after “consult with” in introductory provisions.
Subsec. (c)(4). Pub. L. 110–315, §117(3)(E), added par. (4).
Subsec. (d)(1). Pub. L. 110–315, §117(4)(A), struck out after first sentence “The Secretary shall appoint the Chief Operating Officer within 6 months after October 7, 1998.”
Subsec. (d)(4)(B). Pub. L. 110–315, §103(b)(2), substituted “authorizing committees” for “Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate”.
Subsec. (d)(5)(B). Pub. L. 110–315, §117(4)(B)(i), substituted “paragraph (4)” for “paragraph (2)”.
Subsec. (d)(5)(C). Pub. L. 110–315, §117(4)(B)(ii), struck out “this” before “subparagraph (B)”.
Subsec. (f)(2). Pub. L. 110–315, §117(5)(A), substituted “to students, borrowers,” for “to borrowers”.
Subsec. (f)(3)(A). Pub. L. 110–315, §117(5)(B), substituted “paragraph (1);” for “paragraph (1)(A);”.
Subsec. (g)(3). Pub. L. 110–315, §117(6), struck out “not more than 25” before “technical and professional employees”.
Subsec. (h). Pub. L. 110–315, §117(7), substituted “effectiveness” for “organizational effectiveness”.
Subsecs. (i), (j). Pub. L. 110–315, §117(8)–(10), redesignated subsec. (j) as (i), struck out “, including transition costs” before period at end, and struck out former subsec. (i). Text of former subsec. (i) read as follows: “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.”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 105–244, title VIII, §801, Oct. 7, 1998, 112 Stat. 1803, which 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, was repealed by Pub. L. 110–315, title IX, §931(1), Aug. 14, 2008, 122 Stat. 3456.
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.
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 to carry out the functions set forth in section 1018(b)(2) of this title;
(2) obtain the services of experts and consultants without regard to section 3109 of title 5 and set pay in accordance with such section; and
(3) through the Chief Operating Officer—
(A) to the maximum extent practicable, utilize procurement systems that streamline operations, improve internal controls, and enhance management; and
(B) assess the efficiency of such systems and assess such systems’ ability to meet PBO requirements.
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.
The Chief Operating Officer shall, when appropriate and consistent with the purposes of the PBO, acquire services related to the functions set forth in section 1018(b)(2) of this title from any entity that has the capability and capacity to meet the requirements set by the PBO. The Chief Operating Officer is authorized to pay fees that are equivalent to those paid by other entities to an organization that provides services that meet the requirements of the PBO, as determined by the Chief Operating Officer.
The PBO may use a two-phase process for selecting a source for a procurement of property or services.
The procedures for the first phase of the process for a procurement are as follows:
The contracting officer for the procurement shall publish a notice of the procurement in accordance with section 1708 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.
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, together with any additional information that is requested by the contracting officer.
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.
The contracting officer shall conduct the second phase of the source selection process in accordance with sections 3306(a) to (e) and 3308, chapter 37, and section 4702 of title 41.
Only the sources selected in the first phase of the process shall be eligible to participate in the second phase.
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).
The procedures used for selecting a source for a procurement under this subsection shall be considered competitive procedures for all purposes.
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).
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 1708 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.
Paragraph (1) does not apply to a procurement of a commercial item.
If an international agreement is applicable to the procurement, any exercise of authority under paragraph (1) shall be consistent with the international agreement.
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.
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.
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.
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:
Award of the contract on a single-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).
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.
Award of the contract under any other procedure authorized by law.
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.
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.
A notice published under subparagraph (A) with respect to a use of procedures described in paragraph (4) shall contain the information required under section 1708(c) 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.
The basis for an award of a contract under this subsection shall be documented. However, a justification pursuant to section 3304(e) of title 41 or section 637(h) of title 15 is not required.
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 single-source basis.
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.
The authority set forth in paragraph (1) may not be used for—
(A) an award of a contract on a single-source basis; or
(B) a contract for construction.
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.
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.
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).
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.
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.
In this section:
The term “commercial item” has the meaning given the term in section 103 of title 41.
The term “competitive procedures” has the meaning given the term in section 152 of title 41.
The term “single-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 such source (although such source is not the only source in the marketplace capable of meeting the need) because such source is the most advantageous source for purposes of the award.
The term “special rules for commercial items” means the regulations set forth in the Federal Acquisition Regulation pursuant to sections 1901 and 3305(a) of title 41.
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 sections 1901(a)(1) and 3305(a)(1) of title 41.
(Pub. L. 89–329, title I, §142, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1611; amended Pub. L. 110–315, title I, §118, Aug. 14, 2008, 122 Stat. 3116.)
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.
In subsec. (d)(2)(A), “section 1708 of title 41” substituted for “section 18 of the Office of Federal Procurement Policy Act (41 U.S.C. 416)” on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
In subsec. (d)(3)(A), “sections 3306(a) to (e) and 3308, chapter 37, and section 4702 of title 41” substituted for “sections 303A and 303B of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253a and 253b)” on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
In subsec. (f)(1)(A), “section 1708 of title 41” substituted for “section 18 of the Office of Federal Procurement Policy Act (41 U.S.C. 416)” on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
In subsec. (g)(5)(C), “section 1708(c) of title 41” substituted for “section 18(b) of the Office of Federal Procurement Policy Act (41 U.S.C. 416(b))” on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
In subsec. (g)(6), “section 3304(e) of title 41” substituted for “section 303(f) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(f))” on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
In subsec. (l)(1), “section 103 of title 41” substituted for “section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12))” on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
In subsec. (l)(2), “section 152 of title 41” substituted for “section 309(b) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 259(b))” on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
In subsec. (l)(4), “sections 1901 and 3305(a) of title 41” substituted for “section 303(g)(1) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)) and section 31 of the Office of Federal Procurement Policy Act (41 U.S.C. 427)” on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
In subsec. (l)(5), “sections 1901(a)(1) and 3305(a)(1) of title 41” substituted for “section 303(g)(1)(B) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(A)) and section 31(a)(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 427(a)(1))” on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
A prior section 1018a, Pub. L. 89–329, title I, §142, as added Pub. L. 100–418, title VI, §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.
2008—Subsec. (b)(1). Pub. L. 110–315, §118(1)(A), struck out “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” after “enter into contracts” and “and” after semicolon.
Subsec. (b)(2), (3). Pub. L. 110–315, §118(1)(B), (C), substituted “; and” for period at end of par. (2) and added par. (3).
Subsec. (c)(2). Pub. L. 110–315, §118(2), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “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.”
Subsec. (d)(2)(B). Pub. L. 110–315, §118(3), struck out “on Federal Government contracts” after “performance of the offeror”.
Subsec. (g)(4)(A). Pub. L. 110–315, §118(4)(A), substituted “Single-source basis” for “Sole source” in heading and “single-source” for “sole-source” in text.
Subsec. (g)(7). Pub. L. 110–315, §118(4)(B), substituted “single-source” for “sole-source”.
Subsec. (h)(2)(A). Pub. L. 110–315, §118(5), substituted “single-source” for “sole-source”.
Subsec. (l)(3). Pub. L. 110–315, §118(6), added par. (3) and struck out former par. (3). Prior to amendment, text read as follows: “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.”
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.
(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.
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.
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.
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.
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.
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.
The term “voluntary consensus standard” means a standard developed or used by a standard setting organization described in paragraph (2).
(Pub. L. 89–329, title I, §143, as added Pub. L. 105–244, title I, §101(a), Oct. 7, 1998, 112 Stat. 1615.)
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, §143, as added Pub. L. 100–418, title VI, §6201, Aug. 23, 1988, 102 Stat. 1515, related to use of funds.
Section 1018c, Pub. L. 89–329, title I, §144, as added Pub. L. 100–418, title VI, §6201, Aug. 23, 1988, 102 Stat. 1515; Pub. L. 101–610, title II, §221(a), (b), Nov. 16, 1990, 104 Stat. 3180, related to applications.
Section 1018d, Pub. L. 89–329, title I, §145, as added Pub. L. 100–418, title VI, §6201, Aug. 23, 1988, 102 Stat. 1516, related to technical assistance and coordination contracts.
Section 1018e, Pub. L. 89–329, title I, §146, as added Pub. L. 100–418, title VI, §6201, Aug. 23, 1988, 102 Stat. 1516; Pub. L. 101–305, §5, May 30, 1990, 104 Stat. 258; Pub. L. 101–610, title II, §221(c), Nov. 16, 1990, 104 Stat. 3180, related to authorization of appropriations.
Section 1018f, Pub. L. 89–329, title I, §147, as added Pub. L. 100–418, title VI, §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, §119, as added Pub. L. 96–374, title I, §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.
In this part:
The term “agent” means an officer or employee of a covered institution or an institution-affiliated organization.
The term “covered institution” means any institution of higher education, as such term is defined in section 1002 of this title, that receives any Federal funding or assistance.
The term “education loan” (except when used as part of the term “private education loan”) means—
(A) any loan made, insured, or guaranteed under part B of subchapter IV;
(B) any loan made under part C of subchapter IV; or
(C) a private education loan.
The term “eligible lender” has the meaning given such term in section 1085(d) of this title.
The term “institution-affiliated organization”—
(A) means any organization that—
(i) is directly or indirectly related to a covered institution; and
(ii) is engaged in the practice of recommending, promoting, or endorsing education loans for students attending such covered institution or the families of such students;
(B) may include an alumni organization, athletic organization, foundation, or social, academic, or professional organization, of a covered institution; and
(C) notwithstanding subparagraphs (A) and (B), does not include any lender with respect to any education loan secured, made, or extended by such lender.
The term “lender” (except when used as part of the terms “eligible lender” and “private educational lender”)—
(A) means—
(i) in the case of a loan made, insured, or guaranteed under part B of subchapter IV, an eligible lender;
(ii) in the case of any loan issued or provided to a student under part C of subchapter IV, the Secretary; and
(iii) in the case of a private education loan, a private educational lender as defined in section 1650 of title 15; and
(B) includes any other person engaged in the business of securing, making, or extending education loans on behalf of the lender.
The term “officer” includes a director or trustee of a covered institution or institution-affiliated organization, if such individual is treated as an employee of such covered institution or institution-affiliated organization, respectively.
The term “preferred lender arrangement”—
(A) means an arrangement or agreement between a lender and a covered institution or an institution-affiliated organization of such covered institution—
(i) under which a lender provides or otherwise issues education loans to the students attending such covered institution or the families of such students; and
(ii) that relates to such covered institution or such institution-affiliated organization recommending, promoting, or endorsing the education loan products of the lender; and
(B) does not include—
(i) arrangements or agreements with respect to loans under part C of subchapter IV; or
(ii) arrangements or agreements with respect to loans that originate through the auction pilot program under section 1099d(b) of this title.
The term “private education loan” has the meaning given the term in section 1650 of title 15.
(Pub. L. 89–329, title I, §151, as added Pub. L. 110–315, title I, §120, Aug. 14, 2008, 122 Stat. 3117.)
In addition to the disclosures required by subsections (a)(27) and (h) of section 1094 of this title (if applicable), a covered institution, or an institution-affiliated organization of such covered institution, that participates in a preferred lender arrangement shall disclose—
(i) on such covered institution's or institution-affiliated organization's website and in all informational materials described in subparagraph (C) that describe or discuss education loans—
(I) the maximum amount of Federal grant and loan aid under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 available to students, in an easy to understand format;
(II) the information required to be disclosed pursuant to section 1019b(a)(2)(A)(i) of this title, for each type of loan described in section 1019(3)(A) of this title that is offered pursuant to a preferred lender arrangement of the institution or organization to students of the institution or the families of such students; and
(III) a statement that such institution is required to process the documents required to obtain a loan under part B of subchapter IV from any eligible lender the student selects; and
(ii) on such covered institution's or institution-affiliated organization's website and in all informational materials described in subparagraph (C) that describe or discuss private education loans—
(I) in the case of a covered institution, the information that the Board of Governors of the Federal Reserve System requires to be disclosed under section 1638(e)(11) of title 15, for each type of private education loan offered pursuant to a preferred lender arrangement of the institution to students of the institution or the families of such students; and
(II) in the case of an institution-affiliated organization of a covered institution, the information the Board of Governors of the Federal Reserve System requires to be disclosed under section 1638(e)(1) of title 15, for each type of private education loan offered pursuant to a preferred lender arrangement of the organization to students of such institution or the families of such students.
A covered institution, or an institution-affiliated organization of such covered institution, that provides information regarding a private education loan from a lender to a prospective borrower shall—
(i) provide the prospective borrower with the information the Board of Governors of the Federal Reserve System requires to be disclosed under section 1638(e)(1) of title 15 for such loan;
(ii) inform the prospective borrower that—
(I) the prospective borrower may qualify for loans or other assistance under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42; and
(II) the terms and conditions of loans made, insured, or guaranteed under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 may be more favorable than the provisions of private education loans; and
(iii) ensure that information regarding private education loans is presented in such a manner as to be distinct from information regarding loans that are made, insured, or guaranteed under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42.
The informational materials described in this subparagraph are publications, mailings, or electronic messages or materials that—
(i) are distributed to prospective or current students of a covered institution and families of such students; and
(ii) describe or discuss the financial aid opportunities available to students at an institution of higher education.
A covered institution, or an institution-affiliated organization of such covered institution, that enters into a preferred lender arrangement with a lender regarding private education loans shall not agree to the lender's use of the name, emblem, mascot, or logo of such institution or organization, or other words, pictures, or symbols readily identified with such institution or organization, in the marketing of private education loans to students attending such institution in any way that implies that the loan is offered or made by such institution or organization instead of the lender.
A covered institution, or an institution-affiliated organization of such covered institution, that enters into a preferred lender arrangement with a lender regarding private education loans shall ensure that the name of the lender is displayed in all information and documentation related to such loans.
For each education loan that is made, insured, or guaranteed under part B or C of subchapter IV (other than a loan made under section 1078–3 of this title or a Federal Direct Consolidation Loan), at or prior to the time the lender disburses such loan, the lender shall provide the prospective borrower or borrower, in writing (including through electronic means), with the disclosures described in subsections (a) and (c) of section 1083 of this title.
For each of a lender's private education loans, the lender shall comply with the disclosure requirements under section 1638(e) of title 15.
Each lender of a loan made, insured, or guaranteed under part B of subchapter IV shall, on an annual basis, report to the Secretary—
(I) any reasonable expenses paid or provided under section 1085(d)(5)(D) of this title or paragraph (3)(B) or (7) of section 1094(e) of this title to any agent of a covered institution who—
(aa) is employed in the financial aid office of a covered institution; or
(bb) otherwise has responsibilities with respect to education loans or other financial aid of the institution; and
(II) any similar expenses paid or provided to any agent of an institution-affiliated organization who is involved in the practice of recommending, promoting, or endorsing education loans.
Each report described in clause (i) shall include—
(I) the amount for each specific instance in which the lender provided such expenses;
(II) the name of any agent described in clause (i) to whom the expenses were paid or provided;
(III) the dates of the activity for which the expenses were paid or provided; and
(IV) a brief description of the activity for which the expenses were paid or provided.
The Secretary shall summarize the information received from the lenders under this subparagraph in a report and transmit such report annually to the authorizing committees.
Not later than 18 months after August 14, 2008—
(A) in addition to any other disclosure required under Federal law, each lender of a loan made, insured, or guaranteed under part B of subchapter IV that participates in one or more preferred lender arrangements shall annually certify the lender's compliance with the requirements of this chapter and part C of subchapter I of chapter 34 of title 42; and
(B) if an audit of a lender is required pursuant to section 1078(b)(1)(U)(iii) of this title, the lender's compliance with the requirements under this section shall be reported on and attested to annually by the auditor of such lender.
(Pub. L. 89–329, title I, §152, as added Pub. L. 110–315, title I, §120, Aug. 14, 2008, 122 Stat. 3119.)
Not later than 18 months after August 14, 2008, the Secretary, in coordination with the Board of Governors of the Federal Reserve System, shall determine the minimum information that lenders, covered institutions, and institution-affiliated organizations of such covered institutions participating in preferred lender arrangements shall make available regarding education loans described in section 1019(3)(A) of this title that are offered to students and the families of such students.
In carrying out subparagraph (A), the Secretary shall—
(i) consult with students, the families of such students, representatives of covered institutions (including financial aid administrators, admission officers, and business officers), representatives of institution-affiliated organizations, secondary school guidance counselors, lenders, loan servicers, and guaranty agencies;
(ii) include, in the minimum information under subparagraph (A) that is required to be made available, the information that the Board of Governors of the Federal Reserve System requires to be disclosed under section 1638(e)(1) of title 15, modified as necessary to apply to such loans; and
(iii) consider the merits of requiring each covered institution, and each institution-affiliated organization of such covered institution, with a preferred lender arrangement to provide to prospective borrowers and the families of such borrowers the following information for each type of education loan offered pursuant to such preferred lender arrangement:
(I) The interest rate and terms and conditions of the loan for the next award year, including loan forgiveness and deferment.
(II) Information on any charges, such as origination and Federal default fees, that are payable on the loan, and whether those charges will be—
(aa) collected by the lender at or prior to the disbursal of the loan, including whether the charges will be deducted from the proceeds of the loan or paid separately by the borrower; or
(bb) paid in whole or in part by the lender.
(III) The annual and aggregate maximum amounts that may be borrowed.
(IV) The average amount borrowed from the lender by students who graduated from such institution in the preceding year with certificates, undergraduate degrees, graduate degrees, and professional degrees, as applicable, and who obtained loans of such type from the lender for the preceding year.
(V) The amount the borrower may pay in interest, based on a standard repayment plan and the average amount borrowed from the lender by students who graduated from such institution in the preceding year and who obtained loans of such type from the lender for the preceding year, for—
(aa) borrowers of loans made under section 1078 of this title;
(bb) borrowers of loans made under section 1078–2 or 1078–8 of this title, who pay the interest while in school; and
(cc) borrowers of loans made under section 1078–2 or 1078–8 of this title, who do not pay the interest while in school.
(VI) The consequences for the borrower of defaulting on a loan, including limitations on the discharge of an education loan in bankruptcy.
(VII) Contact information for the lender.
(VIII) Other information suggested by the persons and entities with whom the Secretary has consulted under clause (i).
After making the determinations under paragraph (1), the Secretary, in coordination with the Board of Governors of the Federal Reserve System and after consultation with the public, shall—
(A)(i) provide that the information determined under paragraph (1) shall be disclosed by covered institutions, and institution-affiliated organizations of such covered institutions, with preferred lender arrangements to prospective borrowers and the families of such borrowers regarding the education loans described in section 1019(3)(A) of this title that are offered pursuant to such preferred lender arrangements; and
(ii) make clear that such covered institutions and institution-affiliated organizations may provide the required information on a form designed by the institution or organization instead of the model disclosure form described in subparagraph (B);
(B) develop a model disclosure form that may be used by covered institutions, institution-affiliated organizations, and preferred lenders that includes all of the information required under subparagraph (A)(i) in a format that—
(i) is easily usable by students, families, institutions, institution-affiliated organizations, lenders, loan servicers, and guaranty agencies; and
(ii) is similar in format to the form developed by the Board of Governors of the Federal Reserve System under paragraphs (1) and (5)(A) of section 1638(e) 1 of title 15, in order to permit students and the families of students to easily compare private education loans and education loans described in section 1019(3)(A) of this title; and
(C) update such model disclosure form periodically, as necessary.
Each lender that has a preferred lender arrangement with a covered institution, or an institution-affiliated organization of such covered institution, with respect to education loans described in section 1019(3)(A) of this title shall annually, by a date determined by the Secretary, provide to such covered institution or such institution-affiliated organization, and to the Secretary, the information the Secretary requires pursuant to subsection (a)(2)(A)(i) for each type of education loan described in section 1019(3)(A) of this title that the lender plans to offer pursuant to such preferred lender arrangement to students attending such covered institution, or to the families of such students, for the next award year.
Each covered institution, and each institution-affiliated organization of such covered institution, that has a preferred lender arrangement shall provide the following information to students attending such institution, or the families of such students, as applicable:
(i) The information the Secretary requires pursuant to subsection (a)(2)(A)(i), for each type of education loan described in section 1019(3)(A) of this title offered pursuant to a preferred lender arrangement to students of such institution or the families of such students.
(ii)(I) In the case of a covered institution, the information that the Board of Governors of the Federal Reserve System requires to be disclosed under section 1638(e)(11) of title 15 to the covered institution, for each type of private education loan offered pursuant to such preferred lender arrangement to students of such institution or the families of such students.
(II) In the case of an institution-affiliated organization, the information the Board of Governors of the Federal Reserve System requires to be disclosed under section 1638(e)(1) of title 15, for each type of private education loan offered pursuant to such preferred lender arrangement to students of the institution with which such organization is affiliated or the families of such students.
The information described in subparagraph (A) shall be provided in a manner that allows for the students or the families to take such information into account before selecting a lender or applying for an education loan.
Each covered institution, and each institution-affiliated organization of such covered institution, that has a preferred lender arrangement, shall—
(A) prepare and submit to the Secretary an annual report, by a date determined by the Secretary, that includes, for each lender that has a preferred lender arrangement with such covered institution or organization—
(i) the information described in clauses (i) and (ii) of paragraph (1)(A); and
(ii) a detailed explanation of why such covered institution or institution-affiliated organization entered into a preferred lender arrangement with the lender, including why the terms, conditions, and provisions of each type of education loan provided pursuant to the preferred lender arrangement are beneficial for students attending such institution, or the families of such students, as applicable; and
(B) ensure that the report required under subparagraph (A) is made available to the public and provided to students attending or planning to attend such covered institution and the families of such students.
Each covered institution, and each institution-affiliated organization of such covered institution, that has a preferred lender arrangement, shall comply with the code of conduct requirements of subparagraphs (A) through (C) of section 1094(a)(25) of this title.
For purposes of subparagraph (A), an institution-affiliated organization of a covered institution shall—
(i) comply with the code of conduct developed and published by such covered institution under subparagraphs (A) and (B) of section 1094(a)(25) of this title;
(ii) if such institution-affiliated organization has a website, publish such code of conduct prominently on the website; and
(iii) administer and enforce such code of conduct by, at a minimum, requiring that all of such organization's agents with responsibilities with respect to education loans be annually informed of the provisions of such code of conduct.
(Pub. L. 89–329, title I, §153, as added Pub. L. 110–315, title I, §120, Aug. 14, 2008, 122 Stat. 3122; amended Pub. L. 111–39, title I, §101(b)(6), July 1, 2009, 123 Stat. 1935.)
Section 1638(e) of title 15, referred to in subsec. (a)(2)(B)(ii), was in the original “section 128(e)”, and was translated as meaning section 128(e) of Pub. L. 90–321, which is classified to section 1638(e) of title 15, to reflect the probable intent of Congress.
2009—Subsec. (a)(1)(B)(iii)(V). Pub. L. 111–39 substituted “borrowers of loans made under” for “borrowers who take out loans under” wherever appearing.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
1 See References in Text note below.
Not later than 180 days after the development of the model disclosure form under section 1019b(a)(2)(B) of this title, the Secretary shall provide each institution of higher education participating in the William D. Ford Direct Loan Program under part C of subchapter IV with a completed model disclosure form including the same information for Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and Federal Direct PLUS loans made to, or on behalf of, students attending each such institution as is required on such form for loans described in section 1019(3)(A) of this title.
Each institution of higher education participating in the William D. Ford Direct Loan Program under part C of subchapter IV shall—
(A) make the information the Secretary provides to the institution under subsection (a) available to students attending or planning to attend the institution, or the families of such students, as applicable; and
(B) if the institution provides information regarding a private education loan to a prospective borrower, concurrently provide such borrower with the information the Secretary provides to the institution under subsection (a).
In providing the information required under paragraph (1), an institution of higher education may use a comparable form designed by the institution instead of the model disclosure form developed under section 1019b(a)(2)(B) of this title.
(Pub. L. 89–329, title I, §154, as added Pub. L. 110–315, title I, §120, Aug. 14, 2008, 122 Stat. 3125.)
The Secretary, in consultation with the Board of Governors of the Federal Reserve System, shall develop the self-certification form for private education loans that shall be used to satisfy the requirements of section 1638(e)(3) of title 15. Such form shall—
(1) be developed in a standardized format;
(2) be made available to the applicant by the relevant institution of higher education, in written or electronic form, upon request of the applicant;
(3) contain only disclosures that—
(A) the applicant may qualify for Federal student financial assistance through a program under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, or State or institutional student financial assistance, in place of, or in addition to, a private education loan;
(B) the applicant is encouraged to discuss the availability of Federal, State, and institutional student financial assistance with financial aid officials at the applicant's institution of higher education;
(C) a private education loan may affect the applicant's eligibility for free or low-cost Federal, State or institutional student financial assistance; and
(D) the information that the applicant is required to provide on the form is available from officials at the financial aid office of the institution of higher education;
(4) include a place to provide information on—
(A) the applicant's cost of attendance at the institution of higher education, as determined by the institution under part E of subchapter IV;
(B) the applicant's estimated financial assistance, including amounts of financial assistance used to replace the expected family contribution, as determined by the institution, in accordance with subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, for students who have completed the Free Application for Federal Student Aid; and
(C) the difference between the amounts under subparagraphs (A) and (B), as applicable; and
(5) include a place for the applicant's signature, in written or electronic form.
Nothing in this section shall be construed to create a private right of action against an institution of higher education with respect to the form developed under subsection (a).
(Pub. L. 89–329, title I, §155, as added Pub. L. 110–315, title X, §1021(b), Aug. 14, 2008, 122 Stat. 3487; amended Pub. L. 111–39, title I, §101(b)(7), July 1, 2009, 123 Stat. 1935.)
2009—Subsec. (a)(4). Pub. L. 111–39 added par. (4) and struck out former par. (4) which read as follows: “include a place to provide information on—
“(A) the applicant's cost of attendance at the institution of higher education, as determined by the institution under Part E of subchapter IV;
“(B) the applicant's expected family contribution, as determined under Part E of subchapter IV, as applicable, for students who have completed the free application for Federal student aid;
“(C) the applicant's estimated financial assistance, as determined by the institution, in accordance with subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, as applicable;
“(D) the difference between the amounts under subparagraphs (A) and (C), as applicable; and
“(E) the sum of the amounts under subparagraphs (B) and (D), as applicable; and”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 107–110, title X, §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”.
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, §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, §101(e) [title VII, §708(b)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
In this subchapter:
The term “arts and sciences” means—
(A) when referring to an organizational unit of an institution of higher education, any academic unit that offers one 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 area, the disciplines or content areas in which academic majors are offered by the arts and sciences organizational unit.
The term “children from low-income families” means children described in section 6333(c)(1)(A) of this title.
The term “core academic subjects” has the meaning given the term in section 7801 of this title.
The term “early childhood educator” means an individual with primary responsibility for the education of children in an early childhood education program.
The term “educational service agency” has the meaning given the term in section 7801 of this title.
Except as otherwise provided in section 1034 of this title, the term “eligible partnership” means an entity that—
(A) shall include—
(i) a high-need local educational agency;
(ii)(I) a high-need school or a consortium of high-need schools served by the high-need local educational agency; or
(II) as applicable, a high-need early childhood education program;
(iii) a partner institution;
(iv) a school, department, or program of education within such partner institution, which may include an existing teacher professional development program with proven outcomes within a four-year institution of higher education that provides intensive and sustained collaboration between faculty and local educational agencies consistent with the requirements of this subchapter; and
(v) a school or department of arts and sciences within such partner institution; and
(B) may include any of the following:
(i) The Governor of the State.
(ii) The State educational agency.
(iii) The State board of education.
(iv) The State agency for higher education.
(v) A business.
(vi) A public or private nonprofit educational organization.
(vii) An educational service agency.
(viii) A teacher organization.
(ix) A high-performing local educational agency, or a consortium of such local educational agencies, that can serve as a resource to the partnership.
(x) A charter school (as defined in section 7221i of this title).
(xi) A school or department within the partner institution that focuses on psychology and human development.
(xii) A school or department within the partner institution with comparable expertise in the disciplines of teaching, learning, and child and adolescent development.
(xiii) An entity operating a program that provides alternative routes to State certification of teachers.
The term “essential components of reading instruction” has the meaning given the term in section 6368 of this title.
The term “exemplary teacher” has the meaning given the term in section 7801 of this title.
The term “high-need early childhood education program” means an early childhood education program serving children from low-income families that is located within the geographic area served by a high-need local educational agency.
The term “high-need local educational agency” means a local educational agency—
(A)(i) for which not less than 20 percent of the children served by the agency are children from low-income families;
(ii) that serves not fewer than 10,000 children from low-income families;
(iii) that meets the eligibility requirements for funding under the Small, Rural School Achievement Program under section 7345(b) of this title; or
(iv) that meets the eligibility requirements for funding under the Rural and Low-Income School Program under section 7351(b) of this title; and
(B)(i) for which there is a high percentage of teachers not teaching in the academic subject areas or grade levels in which the teachers were trained to teach; or
(ii) for which there is a high teacher turnover rate or a high percentage of teachers with emergency, provisional, or temporary certification or licensure.
The term “high-need school” means a school that, based on the most recent data available, meets one or both of the following:
(i) The school is in the highest quartile of schools in a ranking of all schools served by a local educational agency, ranked in descending order by percentage of students from low-income families enrolled in such schools, as determined by the local educational agency based on one of the following measures of poverty:
(I) The percentage of students aged 5 through 17 in poverty counted in the most recent census data approved by the Secretary.
(II) The percentage of students eligible for a free or reduced price school lunch under the Richard B. Russell National School Lunch Act [42 U.S.C. 1751 et seq.].
(III) The percentage of students in families receiving assistance under the State program funded under part A of title IV of the Social Security Act [42 U.S.C. 601 et seq.].
(IV) The percentage of students eligible to receive medical assistance under the Medicaid program.
(V) A composite of two or more of the measures described in subclauses (I) through (IV).
(ii) In the case of—
(I) an elementary school, the school serves students not less than 60 percent of whom are eligible for a free or reduced price school lunch under the Richard B. Russell National School Lunch Act; or
(II) any other school that is not an elementary school, the other school serves students not less than 45 percent of whom are eligible for a free or reduced price school lunch under the Richard B. Russell National School Lunch Act.
The Secretary may, upon approval of an application submitted by an eligible partnership seeking a grant under this subchapter, designate a school that does not qualify as a high-need school under subparagraph (A) as a high-need school for the purpose of this subchapter. The Secretary shall base the approval of an application for designation of a school under this clause on a consideration of the information required under clause (ii), and may also take into account other information submitted by the eligible partnership.
An application for designation of a school under clause (i) shall include—
(I) the number and percentage of students attending such school who are—
(aa) aged 5 through 17 in poverty counted in the most recent census data approved by the Secretary;
(bb) eligible for a free or reduced price school lunch under the Richard B. Russell National School Lunch Act;
(cc) in families receiving assistance under the State program funded under part A of title IV of the Social Security Act; or
(dd) eligible to receive medical assistance under the Medicaid program;
(II) information about the student academic achievement of students at such school; and
(III) for a secondary school, the graduation rate for such school.
The term “highly competent”, when used with respect to an early childhood educator, means an educator—
(A) with specialized education and training in development and education of young children from birth until entry into kindergarten;
(B) with—
(i) a baccalaureate degree in an academic major in the arts and sciences; or
(ii) an associate's degree in a related educational area; and
(C) who has demonstrated a high level of knowledge and use of content and pedagogy in the relevant areas associated with quality early childhood education.
The term “highly qualified” has the meaning given such term in section 7801 of this title and, with respect to special education teachers, in section 1401 of this title.
The term “induction program” means a formalized program for new teachers during not less than the teachers’ first two years of teaching that is designed to provide support for, and improve the professional performance and advance the retention in the teaching field of, beginning teachers. Such program shall promote effective teaching skills and shall include the following components:
(A) High-quality teacher mentoring.
(B) Periodic, structured time for collaboration with teachers in the same department or field, including mentor teachers, as well as time for information-sharing among teachers, principals, administrators, other appropriate instructional staff, and participating faculty in the partner institution.
(C) The application of empirically-based practice and scientifically valid research on instructional practices.
(D) Opportunities for new teachers to draw directly on the expertise of teacher mentors, faculty, and researchers to support the integration of empirically-based practice and scientifically valid research with practice.
(E) The development of skills in instructional and behavioral interventions derived from empirically-based practice and, where applicable, scientifically valid research.
(F) Faculty who—
(i) model the integration of research and practice in the classroom; and
(ii) assist new teachers with the effective use and integration of technology in the classroom.
(G) Interdisciplinary collaboration among exemplary teachers, faculty, researchers, and other staff who prepare new teachers with respect to the learning process and the assessment of learning.
(H) Assistance with the understanding of data, particularly student achievement data, and the applicability of such data in classroom instruction.
(I) Regular and structured observation and evaluation of new teachers by multiple evaluators, using valid and reliable measures of teaching skills.
The term “limited English proficient” has the meaning given the term in section 7801 of this title.
The term “parent” has the meaning given the term in section 7801 of this title.
The term “partner institution” means an institution of higher education, which may include a two-year institution of higher education offering a dual program with a four-year institution of higher education, participating in an eligible partnership that has a teacher preparation program—
(A) whose graduates 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 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 1022d(b) of this title before the first publication of such report card; and
(II) using the State report card on teacher preparation required under section 1022d(b) of this title, after the first publication of such report card and for every year thereafter; and
(B) that requires—
(i) each student in the program to meet high academic standards or demonstrate a record of success, as determined by the institution (including prior to entering and being accepted into a program), and participate in intensive clinical experience;
(ii) each student in the program preparing to become a teacher to become highly qualified; and
(iii) each student in the program preparing to become an early childhood educator to meet degree requirements, as established by the State, and become highly competent.
The term “principles of scientific research” means principles of research that—
(A) apply rigorous, systematic, and objective methodology to obtain reliable and valid knowledge relevant to education activities and programs;
(B) present findings and make claims that are appropriate to, and supported by, the methods that have been employed; and
(C) include, appropriate to the research being conducted—
(i) use of systematic, empirical methods that draw on observation or experiment;
(ii) use of data analyses that are adequate to support the general findings;
(iii) reliance on measurements or observational methods that provide reliable and generalizable findings;
(iv) strong claims of causal relationships, only with research designs that eliminate plausible competing explanations for observed results, such as, but not limited to, random-assignment experiments;
(v) presentation of studies and methods in sufficient detail and clarity to allow for replication or, at a minimum, to offer the opportunity to build systematically on the findings of the research;
(vi) acceptance by a peer-reviewed journal or critique by a panel of independent experts through a comparably rigorous, objective, and scientific review; and
(vii) consistency of findings across multiple studies or sites to support the generality of results and conclusions.
The term “professional development” has the meaning given the term in section 7801 of this title.
The term “scientifically valid research” includes applied research, basic research, and field-initiated research in which the rationale, design, and interpretation are soundly developed in accordance with principles of scientific research.
The term “teacher mentoring” means the mentoring of new or prospective teachers through a program that—
(A) includes clear criteria for the selection of teacher mentors who will provide role model relationships for mentees, which criteria shall be developed by the eligible partnership and based on measures of teacher effectiveness;
(B) provides high-quality training for such mentors, including instructional strategies for literacy instruction and classroom management (including approaches that improve the schoolwide climate for learning, which may include positive behavioral interventions and supports);
(C) provides regular and ongoing opportunities for mentors and mentees to observe each other's teaching methods in classroom settings during the day in a high-need school in the high-need local educational agency in the eligible partnership;
(D) provides paid release time for mentors, as applicable;
(E) provides mentoring to each mentee by a colleague who teaches in the same field, grade, or subject as the mentee;
(F) promotes empirically-based practice of, and scientifically valid research on, where applicable—
(i) teaching and learning;
(ii) assessment of student learning;
(iii) the development of teaching skills through the use of instructional and behavioral interventions; and
(iv) the improvement of the mentees’ capacity to measurably advance student learning; and
(G) includes—
(i) common planning time or regularly scheduled collaboration for the mentor and mentee; and
(ii) joint professional development opportunities.
The term “teaching residency program” means a school-based teacher preparation program in which a prospective teacher—
(A) for one academic year, teaches alongside a mentor teacher, who is the teacher of record;
(B) receives concurrent instruction during the year described in subparagraph (A) from the partner institution, which courses may be taught by local educational agency personnel or residency program faculty, in the teaching of the content area in which the teacher will become certified or licensed;
(C) acquires effective teaching skills; and
(D) prior to completion of the program—
(i) attains full State certification or licensure and becomes highly qualified; and
(ii) acquires a master's degree not later than 18 months after beginning the program.
The term “teaching skills” means skills that enable a teacher to—
(A) increase student learning, achievement, and the ability to apply knowledge;
(B) effectively convey and explain academic subject matter;
(C) effectively teach higher-order analytical, evaluation, problem-solving, and communication skills;
(D) employ strategies grounded in the disciplines of teaching and learning that—
(i) are based on empirically-based practice and scientifically valid research, where applicable, related to teaching and learning;
(ii) are specific to academic subject matter; and
(iii) focus on the identification of students’ specific learning needs, particularly students with disabilities, students who are limited English proficient, students who are gifted and talented, and students with low literacy levels, and the tailoring of academic instruction to such needs;
(E) conduct an ongoing assessment of student learning, which may include the use of formative assessments, performance-based assessments, project-based assessments, or portfolio assessments, that measures higher-order thinking skills (including application, analysis, synthesis, and evaluation);
(F) effectively manage a classroom, including the ability to implement positive behavioral interventions and support strategies;
(G) communicate and work with parents, and involve parents in their children's education; and
(H) use, in the case of an early childhood educator, age-appropriate and developmentally appropriate strategies and practices for children in early childhood education programs.
(Pub. L. 89–329, title II, §200 as added Pub. L. 110–315, title II, §201(1), Aug. 14, 2008, 122 Stat. 3126; amended Pub. L. 111–39, title II, §201(1), July 1, 2009, 123 Stat. 1936.)
The Richard B. Russell National School Lunch Act, referred to in par. (11)(A)(i)(II), (ii), (B)(ii)(I)(bb), is act June 4, 1946, ch. 281, 60 Stat. 230, which is classified generally to chapter 13 (§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 par. (11)(A)(i)(III), (B)(ii)(I)(cc), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Part A of title IV of the Act is classified generally to part A (§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.
A prior section 1021, Pub. L. 89–329, title II, §201, as added Pub. L. 105–244, title II, §201, Oct. 7, 1998, 112 Stat. 1623; amended Pub. L. 107–110, title X, §1051(2), Jan. 8, 2002, 115 Stat. 2080, related to purposes and definitions, prior to repeal by Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133.
Another prior section 1021, Pub. L. 89–329, title II, §201, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1383; amended Pub. L. 99–498, title II, §201(b), (c), Oct. 17, 1986, 100 Stat. 1287; Pub. L. 100–418, title VI, §6241, Aug. 23, 1988, 102 Stat. 1520; Pub. L. 102–325, title II, §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, §101(e) [title VII, §708(b)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
Another prior section 1021, Pub. L. 89–329, title II, §201, as added Pub. L. 92–318, title I, §111(b)(1), June 23, 1972, 86 Stat. 238; amended Pub. L. 94–482, title I, §106, Oct. 12, 1976, 90 Stat. 2089; Pub. L. 96–49, §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, §201, Nov. 8, 1965, 79 Stat. 1224; Pub. L. 90–575, title II, §211, Oct. 16, 1968, 82 Stat. 1036; Pub. L. 92–318, title I, §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, §111(b)(1), June 23, 1972, 86 Stat. 238.
2009—Par. (22)(D). Pub. L. 111–39 added subpar. (D) and struck out former subpar (D) which read as follows: “prior to completion of the program, earns a master's degree, attains full State teacher certification or licensure, and becomes highly qualified.”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
A prior part A, consisted of sections 1021 to 1030, related to teacher quality enhancement grants for States and partnerships, prior to repeal by Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133.
The purposes of this part are to—
(1) improve student achievement;
(2) improve the quality of prospective and new teachers by improving the preparation of prospective teachers and enhancing professional development activities for new teachers;
(3) hold teacher preparation programs at institutions of higher education accountable for preparing highly qualified teachers; and
(4) recruit highly qualified individuals, including minorities and individuals from other occupations, into the teaching force.
(Pub. L. 89–329, title II, §201, as added Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133.)
A prior section 1022, Pub. L. 89–329, title II, §202, as added Pub. L. 105–244, title II, §201, Oct. 7, 1998, 112 Stat. 1624; amended Pub. L. 107–110, title X, §1051(2), Jan. 8, 2002, 115 Stat. 2080, related to award of State grants, prior to repeal by Pub. L. 110–315, title II, Sec. 201(2), Aug. 14, 2008, 122 Stat. 3133.
Another prior section 1022, Pub. L. 89–329, title II, §202, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1384; amended Pub. L. 102–325, title II, §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, §101(e) [title VII, §708(b)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
Another prior section 1022, Pub. L. 89–329, title II, §202, Nov. 8, 1965, 79 Stat. 1224; Pub. L. 89–752, §9, Nov. 3, 1966, 80 Stat. 1243; Pub. L. 90–575, title II, §214(a), Oct. 16, 1968, 82 Stat. 1037; Pub. L. 92–318, title I, §§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.
A prior section 201 of Pub. L. 89–329 was classified to section 1021 of this title, prior to repeal by Pub. L. 104–208.
Another prior section 201 of Pub. L. 89–329 was classified to section 1021 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
Another prior section 201 of Pub. L. 89–329 was classified to section 1021 of this title, prior to repeal by Pub. L. 92–318.
From amounts made available under section 1022h of this title, the Secretary is authorized to award grants, on a competitive basis, to eligible partnerships, to enable the eligible partnerships to carry out the activities described in subsection (c).
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 contain—
(1) a needs assessment of the partners in the eligible partnership with respect to the preparation, ongoing training, professional development, and retention of general education and special education teachers, principals, and, as applicable, early childhood educators;
(2) a description of the extent to which the program to be carried out with grant funds, as described in subsection (c), will prepare prospective and new teachers with strong teaching skills;
(3) a description of how such program will prepare prospective and new teachers to understand and use research and data to modify and improve classroom instruction;
(4) a description of—
(A) how the eligible partnership will coordinate strategies and activities assisted under the grant with other teacher preparation or professional development programs, including programs funded under the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6301 et seq.] and the Individuals with Disabilities Education Act [20 U.S.C. 1400 et seq.], and through the National Science Foundation; and
(B) how the activities of the partnership will be consistent with State, local, and other education reform activities that promote teacher quality and student academic achievement;
(5) an assessment that describes the resources available to the eligible partnership, including—
(A) the integration of funds from other related sources;
(B) the intended use of the grant funds; and
(C) the commitment of the resources of the partnership to the activities assisted under this section, including financial support, faculty participation, and time commitments, and to the continuation of the activities when the grant ends;
(6) a description of—
(A) how the eligible partnership will meet the purposes of this part;
(B) how the partnership will carry out the activities required under subsection (d) or (e), based on the needs identified in paragraph (1), with the goal of improving student academic achievement;
(C) if the partnership chooses to use funds under this section for a project or activities under subsection (f) or (g), how the partnership will carry out such project or required activities based on the needs identified in paragraph (1), with the goal of improving student academic achievement;
(D) the partnership's evaluation plan under section 1022c(a) of this title;
(E) how the partnership will align the teacher preparation program under subsection (c) with the—
(i) State early learning standards for early childhood education programs, as appropriate, and with the relevant domains of early childhood development; and
(ii) student academic achievement standards and academic content standards under section 1111(b)(1) of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6311(b)(1)], established by the State in which the partnership is located;
(F) how the partnership will prepare general education teachers to teach students with disabilities, including training related to participation as a member of individualized education program teams, as defined in section 614(d)(1)(B) of the Individuals with Disabilities Education Act [20 U.S.C. 1414(d)(1)(B)];
(G) how the partnership will prepare general education and special education teachers to teach students who are limited English proficient;
(H) how faculty at the partner institution will work, during the term of the grant, with highly qualified teachers in the classrooms of high-need schools served by the high-need local educational agency in the partnership to—
(i) provide high-quality professional development activities to strengthen the content knowledge and teaching skills of elementary school and secondary school teachers; and
(ii) train other classroom teachers to implement literacy programs that incorporate the essential components of reading instruction;
(I) how the partnership will design, implement, or enhance a year-long and rigorous teaching preservice clinical program component;
(J) how the partnership will support in-service professional development strategies and activities; and
(K) how the partnership will collect, analyze, and use data on the retention of all teachers and early childhood educators in schools and early childhood education programs located in the geographic area served by the partnership to evaluate the effectiveness of the partnership's teacher and educator support system; and
(7) with respect to the induction program required as part of the activities carried out under this section—
(A) a demonstration that the schools and departments within the institution of higher education that are part of the induction program will effectively prepare teachers, including providing content expertise and expertise in teaching, as appropriate;
(B) a demonstration of the eligible partnership's capability and commitment to, and the accessibility to and involvement of faculty in, the use of empirically-based practice and scientifically valid research on teaching and learning;
(C) a description of how the teacher preparation program will design and implement an induction program to support, through not less than the first two years of teaching, all new teachers who are prepared by the teacher preparation program in the partnership and who teach in the high-need local educational agency in the partnership, and, to the extent practicable, all new teachers who teach in such high-need local educational agency, in the further development of the new teachers’ teaching skills, including the use of mentors who are trained and compensated by such program for the mentors’ work with new teachers; and
(D) a description of how faculty involved in the induction program will be able to substantially participate in an early childhood education program or an elementary school or secondary school classroom setting, as applicable, including release time and receiving workload credit for such participation.
An eligible partnership that receives a grant under this section—
(1) shall use grant funds to carry out a program for the preparation of teachers under subsection (d), a teaching residency program under subsection (e), or a combination of such programs; and
(2) may use grant funds to carry out a leadership development program under subsection (f).
An eligible partnership that receives a grant to carry out a program for the preparation of teachers shall carry out an effective pre-baccalaureate teacher preparation program or a 5th year initial licensing program that includes all of the following:
Implementing reforms, described in subparagraph (B), within each teacher preparation program and, as applicable, each preparation program for early childhood education programs, of the eligible partnership that is assisted under this section, to hold each program accountable for—
(i) preparing—
(I) new or prospective teachers to be highly qualified (including teachers in rural school districts who may teach multiple subjects, special educators, and teachers of students who are limited English proficient who may teach multiple subjects);
(II) such teachers and, as applicable, early childhood educators, to understand empirically-based practice and scientifically valid research related to teaching and learning and the applicability of such practice and research, including through the effective use of technology, instructional techniques, and strategies consistent with the principles of universal design for learning, and through positive behavioral interventions and support strategies to improve student achievement; and
(III) as applicable, early childhood educators to be highly competent; and
(ii) promoting strong teaching skills and, as applicable, techniques for early childhood educators to improve children's cognitive, social, emotional, and physical development.
The reforms described in subparagraph (A) shall include—
(i) implementing teacher preparation program curriculum changes that improve, evaluate, and assess how well all prospective and new teachers develop teaching skills;
(ii) using empirically-based practice and scientifically valid research, where applicable, about teaching and learning so that all prospective teachers and, as applicable, early childhood educators—
(I) understand and can implement research-based teaching practices in classroom instruction;
(II) have knowledge of student learning methods;
(III) possess skills to analyze student academic achievement data and other measures of student learning, and use such data and measures to improve classroom instruction;
(IV) possess teaching skills and an understanding of effective instructional strategies across all applicable content areas that enable general education and special education teachers and early childhood educators to—
(aa) meet the specific learning needs of all students, including students with disabilities, students who are limited English proficient, students who are gifted and talented, students with low literacy levels and, as applicable, children in early childhood education programs; and
(bb) differentiate instruction for such students;
(V) can effectively participate as a member of the individualized education program team, as defined in section 614(d)(1)(B) of the Individuals with Disabilities Education Act [20 U.S.C. 1414(d)(1)(B)]; and
(VI) can successfully employ effective strategies for reading instruction using the essential components of reading instruction;
(iii) ensuring collaboration with departments, programs, or units of a partner institution outside of the teacher preparation program in all academic content areas to ensure that prospective teachers receive training in both teaching and relevant content areas in order to become highly qualified, which may include training in multiple subjects to teach multiple grade levels as may be needed for individuals preparing to teach in rural communities and for individuals preparing to teach students with disabilities as described in section 602(10)(D) of the Individuals with Disabilities Education Act [20 U.S.C. 1401(10)(D)];
(iv) developing and implementing an induction program;
(v) developing admissions goals and priorities aligned with the hiring objectives of the high-need local educational agency in the eligible partnership; and
(vi) implementing program and curriculum changes, as applicable, to ensure that prospective teachers have the requisite content knowledge, preparation, and degree to teach Advanced Placement or International Baccalaureate courses successfully.
Developing and improving a sustained and high-quality preservice clinical education program to further develop the teaching skills of all prospective teachers and, as applicable, early childhood educators, involved in the program. Such program shall do the following:
(A) Incorporate year-long opportunities for enrichment, including—
(i) clinical learning in classrooms in high-need schools served by the high-need local educational agency in the eligible partnership, and identified by the eligible partnership; and
(ii) closely supervised interaction between prospective teachers and faculty, experienced teachers, principals, other administrators, and school leaders at early childhood education programs (as applicable), elementary schools, or secondary schools, and providing support for such interaction.
(B) Integrate pedagogy and classroom practice and promote effective teaching skills in academic content areas.
(C) Provide high-quality teacher mentoring.
(D) Be offered over the course of a program of teacher preparation.
(E) Be tightly aligned with course work (and may be developed as a fifth year of a teacher preparation program).
(F) Where feasible, allow prospective teachers to learn to teach in the same local educational agency in which the teachers will work, learning the instructional initiatives and curriculum of that local educational agency.
(G) As applicable, provide training and experience to enhance the teaching skills of prospective teachers to better prepare such teachers to meet the unique needs of teaching in rural or urban communities.
(H) Provide support and training for individuals participating in an activity for prospective or new teachers described in this paragraph or paragraph (1) or (3), and for individuals who serve as mentors for such teachers, based on each individual's experience. Such support may include—
(i) with respect to a prospective teacher or a mentor, release time for such individual's participation;
(ii) with respect to a faculty member, receiving course workload credit and compensation for time teaching in the eligible partnership's activities; and
(iii) with respect to a mentor, a stipend, which may include bonus, differential, incentive, or performance pay, based on the mentor's extra skills and responsibilities.
Creating an induction program for new teachers or, in the case of an early childhood education program, providing mentoring or coaching for new early childhood educators.
In the case of an eligible partnership focusing on early childhood educator preparation, implementing initiatives that increase compensation for early childhood educators who attain associate or baccalaureate degrees in early childhood education.
Developing and implementing effective mechanisms (which may include alternative routes to State certification of teachers) to ensure that the eligible partnership is able to recruit qualified individuals to become highly qualified teachers through the activities of the eligible partnership, which may include an emphasis on recruiting into the teaching profession—
(A) individuals from under 1 represented populations;
(B) individuals to teach in rural communities and teacher shortage areas, including mathematics, science, special education, and the instruction of limited English proficient students; and
(C) mid-career professionals from other occupations, former military personnel, and recent college graduates with a record of academic distinction.
Strengthening the literacy teaching skills of prospective and, as applicable, new elementary school and secondary school teachers—
(A) to implement literacy programs that incorporate the essential components of reading instruction;
(B) to use screening, diagnostic, formative, and summative assessments to determine students’ literacy levels, difficulties, and growth in order to improve classroom instruction and improve student reading and writing skills;
(C) to provide individualized, intensive, and targeted literacy instruction for students with deficiencies in literacy skills; and
(D) to integrate literacy skills in the classroom across subject areas.
An eligible partnership receiving a grant to carry out an effective teaching residency program shall carry out a program that includes all of the following activities:
(A) Supporting a teaching residency program described in paragraph (2) for high-need subjects and areas, as determined by the needs of the high-need local educational agency in the partnership.
(B) Placing graduates of the teaching residency program in cohorts that facilitate professional collaboration, both among graduates of the teaching residency program and between such graduates and mentor teachers in the receiving school.
(C) Ensuring that teaching residents who participate in the teaching residency program receive—
(i) effective preservice preparation as described in paragraph (2);
(ii) teacher mentoring;
(iii) support required through the induction program as the teaching residents enter the classroom as new teachers; and
(iv) the preparation described in subparagraphs (A), (B), and (C) of subsection (d)(2).
A teaching residency program under this paragraph shall be a program based upon models of successful teaching residencies that serves as a mechanism to prepare teachers for success in the high-need schools in the eligible partnership, and shall be designed to include the following characteristics of successful programs:
(i) The integration of pedagogy, classroom practice, and teacher mentoring.
(ii) Engagement of teaching residents in rigorous graduate-level course work leading to a master's degree while undertaking a guided teaching apprenticeship.
(iii) Experience and learning opportunities alongside a trained and experienced mentor teacher—
(I) whose teaching shall complement the residency program so that classroom clinical practice is tightly aligned with coursework;
(II) who shall have extra responsibilities as a teacher leader of the teaching residency program, as a mentor for residents, and as a teacher coach during the induction program for new teachers, and for establishing, within the program, a learning community in which all individuals are expected to continually improve their capacity to advance student learning; and
(III) who may be relieved from teaching duties as a result of such additional responsibilities.
(iv) The establishment of clear criteria for the selection of mentor teachers based on measures of teacher effectiveness and the appropriate subject area knowledge. Evaluation of teacher effectiveness shall be based on, but not limited to, observations of the following:
(I) Planning and preparation, including demonstrated knowledge of content, pedagogy, and assessment, including the use of formative and diagnostic assessments to improve student learning.
(II) Appropriate instruction that engages students with different learning styles.
(III) Collaboration with colleagues to improve instruction.
(IV) Analysis of gains in student learning, based on multiple measures that are valid and reliable and that, when feasible, may include valid, reliable, and objective measures of the influence of teachers on the rate of student academic progress.
(V) In the case of mentor candidates who will be mentoring new or prospective literacy and mathematics coaches or instructors, appropriate skills in the essential components of reading instruction, teacher training in literacy instructional strategies across core subject areas, and teacher training in mathematics instructional strategies, as appropriate.
(v) Grouping of teaching residents in cohorts to facilitate professional collaboration among such residents.
(vi) The development of admissions goals and priorities—
(I) that are aligned with the hiring objectives of the local educational agency partnering with the program, as well as the instructional initiatives and curriculum of such agency, in exchange for a commitment by such agency to hire qualified graduates from the teaching residency program; and
(II) which may include consideration of applicants who reflect the communities in which they will teach as well as consideration of individuals from underrepresented populations in the teaching profession.
(vii) Support for residents, once the teaching residents are hired as teachers of record, through an induction program, professional development, and networking opportunities to support the residents through not less than the residents’ first two years of teaching.
In order to be eligible to be a teacher resident in a teaching residency program under this paragraph, an individual shall—
(I) be a recent graduate of a four-year institution of higher education or a mid-career professional from outside the field of education possessing strong content knowledge or a record of professional accomplishment; and
(II) submit an application to the teaching residency program.
An eligible partnership carrying out a teaching residency program under this subsection shall establish criteria for the selection of eligible individuals to participate in the teaching residency program based on the following characteristics:
(I) Strong content knowledge or record of accomplishment in the field or subject area to be taught.
(II) Strong verbal and written communication skills, which may be demonstrated by performance on appropriate tests.
(III) Other attributes linked to effective teaching, which may be determined by interviews or performance assessments, as specified by the eligible partnership.
A teaching residency program under this subsection shall provide a one-year living stipend or salary to teaching residents during the teaching residency program.
Each teacher residency candidate desiring a stipend or salary during the period of residency shall submit an application to the eligible partnership at such time, and containing such information and assurances, as the eligible partnership may require.
Each application submitted under clause (ii) shall contain or be accompanied by an agreement that the applicant will—
(I) serve as a full-time teacher for a total of not less than three academic years immediately after successfully completing the teaching residency program;
(II) fulfill the requirement under subclause (I) by teaching in a high-need school served by the high-need local educational agency in the eligible partnership and teach a subject or area that is designated as high need by the partnership;
(III) provide to the eligible partnership a certificate, from the chief administrative officer of the local educational agency in which the resident is employed, of the employment required in subclauses (I) and (II) at the beginning of, and upon completion of, each year or partial year of service;
(IV) meet the requirements to be a highly qualified teacher, as defined in section 9101 of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 7801], or section 602 of the Individuals with Disabilities Education Act [20 U.S.C. 1401], when the applicant begins to fulfill the service obligation under this clause; and
(V) comply with the requirements set by the eligible partnership under clause (iv) if the applicant is unable or unwilling to complete the service obligation required by this clause.
A grantee carrying out a teaching residency program under this paragraph shall require a recipient of a stipend or salary under clause (i) who does not complete, or who notifies the partnership that the recipient intends not to complete, the service obligation required by clause (iii) to repay such stipend or salary to the eligible partnership, together with interest, at a rate specified by the partnership in the agreement, and in accordance with such other terms and conditions specified by the eligible partnership, as necessary.
Any other terms and conditions specified by the eligible partnership may include reasonable provisions for pro-rata repayment of the stipend or salary described in clause (i) or for deferral of a teaching resident's service obligation required by clause (iii), on grounds of health, incapacitation, inability to secure employment in a school served by the eligible partnership, being called to active duty in the Armed Forces of the United States, or other extraordinary circumstances.
An eligible partnership shall use any repayment received under this clause to carry out additional activities that are consistent with the purposes of this subsection.
An eligible partnership that receives a grant under this section may carry out an effective school leadership program, which may be carried out in partnership with a local educational agency located in a rural area and that shall include all of the following activities:
(A) Preparing individuals enrolled or preparing to enroll in school leadership programs for careers as superintendents, principals, early childhood education program directors, or other school leaders (including individuals preparing to work in local educational agencies located in rural areas who may perform multiple duties in addition to the role of a school leader).
(B) Promoting strong leadership skills and, as applicable, techniques for school leaders to effectively—
(i) create and maintain a data-driven, professional learning community within the leader's school;
(ii) provide a climate conducive to the professional development of teachers, with a focus on improving student academic achievement and the development of effective instructional leadership skills;
(iii) understand the teaching and assessment skills needed to support successful classroom instruction and to use data to evaluate teacher instruction and drive teacher and student learning;
(iv) manage resources and school time to improve student academic achievement and ensure the school environment is safe;
(v) engage and involve parents, community members, the local educational agency, businesses, and other community leaders, to leverage additional resources to improve student academic achievement; and
(vi) understand how students learn and develop in order to increase academic achievement for all students.
(C) Ensuring that individuals who participate in the school leadership program receive—
(i) effective preservice preparation as described in subparagraph (D);
(ii) mentoring; and
(iii) if applicable, full State certification or licensure to become a school leader.
(D) Developing and improving a sustained and high-quality preservice clinical education program to further develop the leadership skills of all prospective school leaders involved in the program. Such clinical education program shall do the following:
(i) Incorporate year-long opportunities for enrichment, including—
(I) clinical learning in high-need schools served by the high-need local educational agency or a local educational agency located in a rural area in the eligible partnership and identified by the eligible partnership; and
(II) closely supervised interaction between prospective school leaders and faculty, new and experienced teachers, and new and experienced school leaders, in such high-need schools.
(ii) Integrate pedagogy and practice and promote effective leadership skills, meeting the unique needs of urban, rural, or geographically isolated communities, as applicable.
(iii) Provide for mentoring of new school leaders.
(E) Creating an induction program for new school leaders.
(F) Developing and implementing effective mechanisms to ensure that the eligible partnership is able to recruit qualified individuals to become school leaders through the activities of the eligible partnership, which may include an emphasis on recruiting into school leadership professions—
(i) individuals from underrepresented populations;
(ii) individuals to serve as superintendents, principals, or other school administrators in rural and geographically isolated communities and school leader shortage areas; and
(iii) mid-career professionals from other occupations, former military personnel, and recent college graduates with a record of academic distinction.
In order to be eligible for the school leadership program under this subsection, an individual shall be enrolled in or preparing to enroll in an institution of higher education, and shall—
(A) be a—
(i) recent graduate of an institution of higher education;
(ii) mid-career professional from outside the field of education with strong content knowledge or a record of professional accomplishment;
(iii) current teacher who is interested in becoming a school leader; or
(iv) school leader who is interested in becoming a superintendent; and
(B) submit an application to the leadership program.
An eligible partnership that receives a grant under this section may use grant funds provided to carry out the activities described in subsection (d) or (e), or both, to partner with a television public broadcast station, as defined in section 397(6) of title 47, or another entity that develops digital educational content, for the purpose of improving the quality of pre-baccalaureate teacher preparation programs or to enhance the quality of preservice training for prospective teachers.
The Secretary shall—
(1) evaluate the programs assisted under this section; and
(2) make publicly available a report detailing the Secretary's evaluation of each such program.
Members of an eligible partnership that receives a grant under this section shall engage in regular consultation throughout the development and implementation of programs and activities carried out under this section.
To ensure timely and meaningful consultation as described in paragraph (1), regular communication shall occur among all members of the eligible partnership, including the high-need local educational agency. Such communication shall continue throughout the implementation of the grant and the assessment of programs and activities under this section.
The Secretary may approve changes in grant activities of a grant under this section only if the eligible partnership submits to the Secretary a written consent to such changes signed by all members of the eligible partnership.
Nothing in this section shall be construed to prohibit an eligible partnership from using grant funds to coordinate with the activities of eligible partnerships in other States or on a regional basis through Governors, State boards of education, State educational agencies, State agencies responsible for early childhood education, local educational agencies, or State agencies for higher education.
Funds made available under this section shall be used to supplement, and not supplant, other Federal, State, and local funds that would otherwise be expended to carry out activities under this section.
(Pub. L. 89–329, title II, §202, as added Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133; amended Pub. L. 111–39, title II, §201(2), July 1, 2009, 123 Stat. 1936.)
The Elementary and Secondary Education Act of 1965, referred to in subsec. (b)(4)(A), is Pub. L. 89–10, Apr. 11, 1965, 79 Stat. 27, which is classified generally to chapter 70 (§6301 et seq.) 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.
The Individuals with Disabilities Education Act, referred to in subsec. (b)(4)(A), is title VI of Pub. L. 91–230, Apr. 13, 1970, 84 Stat. 175, which is classified generally to chapter 33 (§1400 et seq.) of this title. For complete classification of this Act to the Code, see section 1400 of this title and Tables.
Prior section 202 of Pub. L. 89–329 was classified to section 1022 of this title, prior to repeal by Pub. L. 110–315.
A prior section 202 of Pub. L. 89–329 was classified to section 1022 of this title, prior to repeal by Pub. L. 104–208.
Another prior section 202 of Pub. L. 89–329 was classified to section 1022 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
2009—Subsec. (b)(6)(E)(ii). Pub. L. 111–39, §201(2)(A), substituted “section 1111(b)(1)” for “section 1111(b)(2)”.
Subsec. (c)(1). Pub. L. 111–39, §201(2)(B), struck out “pre-baccalaureate” before “preparation”.
Subsec. (d). Pub. L. 111–39, §201(2)(C), substituted “the preparation” for “pre-baccalaureate preparation” in heading, added introductory provisions, and struck out former introductory provisions which read as follows: “An eligible partnership that receives a grant to carry out an effective program for the pre-baccalaureate preparation of teachers shall carry out a program that includes all of the following:”.
Subsec. (e)(2). Pub. L. 111–39, §201(2)(D), in subpar. (A)(ii), substituted “leading to” for “to earn” and, in subpar. (C), struck out “one-year” before “teaching residency program” in cls. (i) and (iii)(I).
Subsec. (i)(3). Pub. L. 111–39, §201(2)(E), substituted “consent to” for “consent of”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
1 So in original. Probably should be followed by a hyphen.
A grant awarded under this part shall be awarded for a period of five years.
An eligible partnership may not receive more than one grant during a five-year period. Nothing in this subchapter shall be construed to prohibit an individual member, that can demonstrate need, of an eligible partnership that receives a grant under this subchapter from entering into another eligible partnership consisting of new members and receiving a grant with such other eligible partnership before the five-year period described in the preceding sentence applicable to the eligible partnership with which the individual member has first partnered has expired.
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.
The Secretary, in funding applications under this part, shall give priority—
(A) to eligible partnerships that include an institution of higher education whose teacher preparation program has a rigorous selection process to ensure the highest quality of students entering such program; and
(B)(i) to applications from broad-based eligible partnerships that involve businesses and community organizations; or
(ii) to eligible partnerships so that the awards promote an equitable geographic distribution of grants among rural and urban areas.
The Secretary shall determine, based on the peer review process, which applications 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 by the eligible partnership.
Each eligible partnership receiving a grant under this part shall provide, from non-Federal sources, an amount equal to 100 percent of the amount of the grant, which may be provided in cash or in-kind, to carry out the activities supported by the grant.
The Secretary may waive all or part of the matching requirement described in paragraph (1) for any fiscal year for an eligible partnership if the Secretary determines that applying the matching requirement to the eligible partnership would result in serious hardship or an inability to carry out the authorized activities described in this part.
An eligible partnership that receives a grant under this part may use not more than two percent of the funds provided to administer the grant.
(Pub. L. 89–329, title II, §203, as added Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3145.)
A prior section 203 of Pub. L. 89–329 was classified to section 1023 of this title, prior to repeal by Pub. L. 110–315.
Another prior section 203 of Pub. L. 89–329 was classified to section 1023 of this title, prior to repeal by Pub. L. 104–208.
Another prior section 203 of Pub. L. 89–329 was classified to section 1023 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
Each eligible partnership submitting an application for a grant under this part shall establish, and include in such application, an evaluation plan that includes strong and measurable performance objectives. The plan shall include objectives and measures for increasing—
(1) achievement for all prospective and new teachers, as measured by the eligible partnership;
(2) teacher retention in the first three years of a teacher's career;
(3) improvement in the pass rates and scaled scores for initial State certification or licensure of teachers; and
(4)(A) the percentage of highly qualified teachers hired by the high-need local educational agency participating in the eligible partnership;
(B) the percentage of highly qualified teachers hired by the high-need local educational agency who are members of underrepresented groups;
(C) the percentage of highly qualified teachers hired by the high-need local educational agency who teach high-need academic subject areas (such as reading, mathematics, science, and foreign language, including less commonly taught languages and critical foreign languages);
(D) the percentage of highly qualified teachers hired by the high-need local educational agency who teach in high-need areas (including special education, language instruction educational programs for limited English proficient students, and early childhood education);
(E) the percentage of highly qualified teachers hired by the high-need local educational agency who teach in high-need schools, disaggregated by the elementary school and secondary school levels;
(F) as applicable, the percentage of early childhood education program classes in the geographic area served by the eligible partnership taught by early childhood educators who are highly competent; and
(G) as applicable, the percentage of teachers trained—
(i) to integrate technology effectively into curricula and instruction, including technology consistent with the principles of universal design for learning; and
(ii) to use technology effectively to collect, manage, and analyze data to improve teaching and learning for the purpose of improving student academic achievement.
An eligible partnership receiving a grant under this part shall ensure that teachers, principals, school superintendents, faculty, and leadership at institutions of higher education located in the geographic areas served by the eligible partnership are provided information, including through electronic means, about the activities carried out with funds under this part.
If the Secretary determines that an eligible partnership receiving a grant under this part is not making substantial progress in meeting the purposes, goals, objectives, and measures of the grant, as appropriate, by the end of the third year of a grant under this part, then the Secretary—
(1) shall cancel the grant; and
(2) may use any funds returned or available because of such cancellation under paragraph (1) to—
(A) increase other grant awards under this part; or
(B) award new grants to other eligible partnerships under this part.
The Secretary shall evaluate the activities funded under this part and report the findings regarding the evaluation of such activities to the authorizing committees. The Secretary shall broadly disseminate—
(1) successful practices developed by eligible partnerships under this part; and
(2) information regarding such practices that were found to be ineffective.
(Pub. L. 89–329, title II, §204, as added Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3146.)
A prior section 204 of Pub. L. 89–329 was classified to section 1024 of this title, prior to repeal by Pub. L. 110–315.
Another prior section 204 of Pub. L. 89–329 was classified to section 1024 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
Each institution of higher education that conducts a traditional teacher preparation program or alternative routes to State certification or licensure program and that enrolls students receiving Federal assistance under this chapter and part C of subchapter I of chapter 34 of title 42 shall report annually to the State and the general public, in a uniform and comprehensible manner that conforms with the definitions and methods established by the Secretary, the following:
(i) For the most recent year for which the information is available for the institution—
(I) whether the goals set under section 1022e of this title have been met; and
(II) a description of the activities the institution implemented to achieve such goals.
(ii) A description of the steps the institution is taking to improve its performance in meeting the annual goals set under section 1022e of this title.
(iii) A description of the activities the institution has implemented to meet the assurances provided under section 1022e of this title.
For the most recent year for which the information is available for those students who took the assessments used for teacher certification or licensure by the State in which the program is located and are enrolled in the traditional teacher preparation program or alternative routes to State certification or licensure program, and for those who have taken such assessments and have completed the traditional teacher preparation program or alternative routes to State certification or licensure program during the two-year period preceding such year, for each of such assessments—
(i) the percentage of students who have completed 100 percent of the nonclinical coursework and taken the assessment who pass such assessment;
(ii) the percentage of all students who passed such assessment;
(iii) the percentage of students who have taken such assessment who enrolled in and completed the traditional teacher preparation program or alternative routes to State certification or licensure program, as applicable;
(iv) the average scaled score for all students who took such assessment;
(v) a comparison of the program's pass rates with the average pass rates for programs in the State; and
(vi) a comparison of the program's average scaled scores with the average scaled scores for programs in the State.
A description of—
(i) the criteria for admission into the program;
(ii) the number of students in the program (disaggregated by race, ethnicity, and gender);
(iii) the average number of hours of supervised clinical experience required for those in the program;
(iv) the number of full-time equivalent faculty and students in the supervised clinical experience; and
(v) the total number of students who have been certified or licensed as teachers, disaggregated by subject and area of certification or licensure.
In States that require approval or accreditation of teacher preparation programs, a statement of whether the institution's program is so approved or accredited, and by whom.
Whether the program has been designated as low-performing by the State under section 1022f(a) of this title.
A description of the activities, including activities consistent with the principles of universal design for learning, that prepare teachers to integrate technology effectively into curricula and instruction, and to use technology effectively to collect, manage, and analyze data in order to improve teaching and learning for the purpose of increasing student academic achievement.
A description of the activities that prepare general education and special education teachers to teach students with disabilities effectively, including training related to participation as a member of individualized education program teams, as defined in section 1414(d)(1)(B) of this title, and to effectively teach students who are limited English proficient.
Each eligible partnership receiving a grant under section 1022a of this title shall report annually on the progress of the eligible partnership toward meeting the purposes of this part and the objectives and measures described in section 1022c(a) of this title.
The Secretary may impose a fine not to exceed $27,500 on an institution of higher education for failure to provide the information described in this subsection in a timely or accurate manner.
In the case of an institution of higher education that conducts a traditional teacher preparation program or alternative routes to State certification or licensure program and has fewer than 10 scores reported on any single initial teacher certification or licensure assessment during an academic year, the institution shall collect and publish information, as required under paragraph (1)(B), with respect to an average pass rate and scaled score on each State certification or licensure assessment taken over a three-year period.
Each State that receives funds under this chapter and part C of subchapter I of chapter 34 of title 42 shall provide to the Secretary, and make widely available to the general public, in a uniform and comprehensible manner that conforms with the definitions and methods established by the Secretary, an annual State report card on the quality of teacher preparation in the State, both for traditional teacher preparation programs and for alternative routes to State certification or licensure programs, which shall include not less than the following:
(A) A description of the reliability and validity of the teacher certification and licensure assessments, and any other certification and licensure requirements, used by the State.
(B) The standards and criteria that prospective teachers must meet to attain initial teacher certification or licensure and to be certified or licensed to teach particular academic subjects, areas, or grades within the State.
(C) A description of how the assessments and requirements described in subparagraph (A) are aligned with the State's challenging academic content standards required under section 6311(b)(1) of this title and, as applicable, State early learning standards for early childhood education programs.
(D) For each of the assessments used by the State for teacher certification or licensure—
(i) for each institution of higher education located in the State and each entity located in the State, including those that offer an alternative route for teacher certification or licensure, the percentage of students at such institution or entity who have completed 100 percent of the nonclinical coursework and taken the assessment who pass such assessment;
(ii) the percentage of all such students at all such institutions and entities who have taken the assessment who pass such assessment;
(iii) the percentage of students who have taken the assessment who enrolled in and completed a teacher preparation program; and
(iv) the average scaled score of individuals participating in such a program, or who have completed such a program during the two-year period preceding the first year for which the annual State report card is provided, who took each such assessment.
(E) A description of alternative routes to teacher certification or licensure in the State (including any such routes operated by entities that are not institutions of higher education), if any, including, for each of the assessments used by the State for teacher certification or licensure—
(i) the percentage of individuals participating in such routes, or who have completed such routes during the two-year period preceding the date for which the determination is made, who passed each such assessment; and
(ii) the average scaled score of individuals participating in such routes, or who have completed such routes during the two-year period preceding the first year for which the annual State report card is provided, who took each such assessment.
(F) A description of the State's criteria for assessing the performance of teacher preparation programs within institutions of higher education in the State. Such criteria shall include indicators of the academic content knowledge and teaching skills of students enrolled in such programs.
(G) For each teacher preparation program in the State—
(i) the criteria for admission into the program;
(ii) the number of students in the program, disaggregated by race, ethnicity, and gender (except that such disaggregation shall not be required in a case in which the number of students in a category is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student);
(iii) the average number of hours of supervised clinical experience required for those in the program; and
(iv) the number of full-time equivalent faculty, adjunct faculty, and students in supervised clinical experience.
(H) For the State as a whole, and for each teacher preparation program in the State, the number of teachers prepared, in the aggregate and reported separately by—
(i) area of certification or licensure;
(ii) academic major; and
(iii) subject area for which the teacher has been prepared to teach.
(I) A description of the extent to which teacher preparation programs are addressing shortages of highly qualified teachers, by area of certification or licensure, subject, and specialty, in the State's public schools.
(J) The extent to which teacher preparation programs prepare teachers, including general education and special education teachers, to teach students with disabilities effectively, including training related to participation as a member of individualized education program teams, as defined in section 1414(d)(1)(B) of this title.
(K) A description of the activities that prepare teachers to—
(i) integrate technology effectively into curricula and instruction, including activities consistent with the principles of universal design for learning; and
(ii) use technology effectively to collect, manage, and analyze data to improve teaching and learning for the purpose of increasing student academic achievement.
(L) The extent to which teacher preparation programs prepare teachers, including general education and special education teachers, to effectively teach students who are limited English proficient.
The Secretary shall not create a national list or ranking of States, institutions, or schools using the scaled scores provided under this subsection.
The Secretary shall prescribe regulations to ensure the reliability, validity, integrity, and accuracy of the data submitted pursuant to this section.
The Secretary shall annually provide to the authorizing committees, and publish and make widely available, a report card on teacher qualifications and preparation in the United States, including all the information reported in subparagraphs (A) through (L) of subsection (b)(1). Such report shall identify States for which eligible partnerships received a grant under this part.
The Secretary shall prepare and submit a report to the authorizing committees that contains the following:
(A) A comparison of States’ efforts to improve the quality of the current and future teaching force.
(B) A comparison of eligible partnerships’ efforts to improve the quality of the current and future teaching force.
(C) The national mean and median scaled scores and pass rate on any standardized test that is used in more than one State for teacher certification or licensure.
In the case of a teacher preparation program with fewer than ten scores reported on any single initial teacher certification or licensure assessment during an academic year, the Secretary shall collect and publish, and make publicly available, information with respect to an average pass rate and scaled score on each State certification or licensure assessment taken over a three-year period.
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.
(Pub. L. 89–329, title II, §205, as added Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3147.)
A prior section 205 of Pub. L. 89–329 was classified to section 1025 of this title, prior to repeal by Pub. L. 110–315.
Another prior section 205 of Pub. L. 89–329 was classified to section 1025 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
Each institution of higher education that conducts a traditional teacher preparation program (including programs that offer any ongoing professional development programs) or alternative routes to State certification or licensure program, and that enrolls students receiving Federal assistance under this chapter and part C of subchapter I of chapter 34 of title 42, shall set annual quantifiable goals for increasing the number of prospective teachers trained in teacher shortage areas designated by the Secretary or by the State educational agency, including mathematics, science, special education, and instruction of limited English proficient students.
Each institution described in subsection (a) shall provide assurances to the Secretary that—
(1) training provided to prospective teachers responds to the identified needs of the local educational agencies or States where the institution's graduates are likely to teach, based on past hiring and recruitment trends;
(2) training provided to prospective teachers is closely linked with the needs of schools and the instructional decisions new teachers face in the classroom;
(3) prospective special education teachers receive course work in core academic subjects and receive training in providing instruction in core academic subjects;
(4) general education teachers receive training in providing instruction to diverse populations, including children with disabilities, limited English proficient students, and children from low-income families; and
(5) prospective teachers receive training on how to effectively teach in urban and rural schools, as applicable.
Nothing in this section shall be construed to require an institution to create a new teacher preparation area of concentration or degree program or adopt a specific curriculum in complying with this section.
(Pub. L. 89–329, title II, §206, as added Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3152.)
A prior section 206 of Pub. L. 89–329 was classified to section 1026 of this title, prior to repeal by Pub. L. 110–315.
Another prior section 206 of Pub. L. 89–329 was classified to section 1026 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
In order to receive funds under this chapter and part C of subchapter I of chapter 34 of title 42, a State shall conduct an assessment to identify low-performing teacher preparation programs in the State and to assist such programs through the provision of technical assistance. Each such State shall provide the Secretary with an annual list of low-performing teacher preparation programs and an identification of those programs at risk of being placed on such list, as applicable. Such assessment shall be described in the report under section 1022d(b) of this title. Levels of performance shall be determined solely by the State and may include criteria based on information collected pursuant to this part, including progress in meeting the goals of—
(1) increasing the percentage of highly qualified teachers in the State, including increasing professional development opportunities;
(2) improving student academic achievement for elementary and secondary students; and
(3) raising the standards for entry into the teaching profession.
Any teacher preparation program from which the State has withdrawn the State's approval, or terminated the State's financial support, due to the low performance of the program based upon the State assessment described in subsection (a)—
(1) shall be ineligible for any funding for professional development activities awarded by the Department;
(2) may not be permitted to accept or enroll any student who 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;
(3) shall provide transitional support, including remedial services if necessary, for students enrolled at the institution at the time of termination of financial support or withdrawal of approval; and
(4) shall be reinstated upon demonstration of improved performance, as determined by the State.
If the Secretary develops any regulations implementing subsection (b)(2), 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.
The requirements of this section shall apply to both traditional teacher preparation programs and alternative routes to State certification and licensure programs.
(Pub. L. 89–329, title II, §207, as added Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3152.)
A prior section 207 of Pub. L. 89–329 was classified to section 1027 of this title, prior to repeal by Pub. L. 110–315.
Another prior section 207 of Pub. L. 89–329 was classified to section 1027 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
In complying with sections 1022d and 1022e 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 do not reveal personally identifiable information.
For each State that does not use content assessments as a means of ensuring that all teachers teaching in core academic subjects within the State are highly qualified, as required under section 6319 of this title, in accordance with the State plan submitted or revised under section 6311 of this title, and that each person employed as a special education teacher in the State who teaches elementary school or secondary school is highly qualified by the deadline, as required under section 1412(a)(14)(C) of this title, the Secretary shall—
(1) 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, use such data to carry out requirements of this part related to assessments, pass rates, and scaled scores.
For the purpose of improving teacher preparation programs, a State that receives funds under this chapter and part C of subchapter I of chapter 34 of title 42, or that participates as a member of a partnership, consortium, or other entity that receives such funds, shall provide to a teacher preparation program, upon the request of the teacher preparation program, any and all pertinent education-related information that—
(A) may enable the teacher preparation program to evaluate the effectiveness of the program's graduates or the program itself; and
(B) is possessed, controlled, or accessible by the State.
The information described in paragraph (1)—
(A) shall include an identification of specific individuals who graduated from the teacher preparation program to enable the teacher preparation program to evaluate the information provided to the program from the State with the program's own data about the specific courses taken by, and field experiences of, the individual graduates; and
(B) may include—
(i) kindergarten through grade 12 academic achievement and demographic data, without revealing personally identifiable information about an individual student, for students who have been taught by graduates of the teacher preparation program; and
(ii) teacher effectiveness evaluations for teachers who graduated from the teacher preparation program.
(Pub. L. 89–329, title II, §208, as added Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3153.)
A prior section 208 of Pub. L. 89–329 was classified to section 1028 of this title, prior to repeal by Pub. L. 110–315.
Another prior section 208 of Pub. L. 89–329 was classified to section 1028 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
There are authorized to be appropriated to carry out this part $300,000,000 for fiscal year 2009 and such sums as may be necessary for each of the two succeeding fiscal years.
(Pub. L. 89–329, title II, §209, as added Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3154.)
A prior section 209 of Pub. L. 89–329 was classified to section 1029 of this title, prior to repeal by Pub. L. 110–315.
A prior section 1023, Pub. L. 89–329, title II, §203, as added Pub. L. 105–244, title II, §201, Oct. 7, 1998, 112 Stat. 1625; amended Pub. L. 107–110, title X, §1051(2), Jan. 8, 2002, 115 Stat. 2080, related to partnership grants, prior to repeal by Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133.
Another prior section 1023, Pub. L. 89–329, title II, §203, as added Pub. L. 102–325, title II, §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, §101(e) [title VII, §708(b)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
Another prior section 1023, Pub. L. 89–329, title II, §203, Nov. 8, 1965, 79 Stat. 1225; Pub. L. 90–575, title II, §212(a), Oct. 16, 1968, 82 Stat. 1036; Pub. L. 92–318, title I, §§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.
A prior section 1024, Pub. L. 89–329, title II, §204, as added Pub. L. 105–244, title II, §201, Oct. 7, 1998, 112 Stat. 1627; amended Pub. L. 107–110, title X, §1051(2), Jan. 8, 2002, 115 Stat. 2080, related to teacher recruitment grants, prior to repeal by Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133.
Another prior section 1024, Pub. L. 89–329, title II, §204, Nov. 8, 1965, 79 Stat. 1226; Pub. L. 90–575, title II, §§212(b), (c), 213(a), Oct. 16, 1968, 82 Stat. 1036; Pub. L. 92–318, title I, §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.
A prior section 1025, Pub. L. 89–329, title II, §205, as added Pub. L. 105–244, title II, §201, Oct. 7, 1998, 112 Stat. 1628; amended Pub. L. 107–110, title X, §1051(2), Jan. 8, 2002, 115 Stat. 2080, related to administrative provisions, prior to repeal by Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133.
Another prior section 1025, Pub. L. 89–329, title II, §205, Nov. 8, 1965, 79 Stat. 1226; Pub. L. 91–230, title IV, §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.
A prior section 1026, Pub. L. 89–329, title II, §206, as added Pub. L. 105–244, title II, §201, Oct. 7, 1998, 112 Stat. 1630; amended Pub. L. 107–110, title X, §1051(2), Jan. 8, 2002, 115 Stat. 2080, related to accountability and evaluation, prior to repeal by Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133.
Another prior section 1026, Pub. L. 89–329, title II, §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.
A prior section 1027, Pub. L. 89–329, title II, §207, as added Pub. L. 105–244, title II, §201, Oct. 7, 1998, 112 Stat. 1632; amended Pub. L. 107–110, title X, §1051(2), Jan. 8, 2002, 115 Stat. 2080, related to accountability for programs that prepare teachers, prior to repeal by Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133.
Another prior section 1027, Pub. L. 89–329, title II, §207, Nov. 8, 1965, 79 Stat. 1227; Pub. L. 92–318, title I, §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.
A prior section 1028, Pub. L. 89–329, title II, §208, as added Pub. L. 105–244, title II, §201, Oct. 7, 1998, 112 Stat. 1634; amended Pub. L. 107–110, title X, §1051(2), Jan. 8, 2002, 115 Stat. 2080, related to State functions, prior to repeal by Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133.
Another prior section 1028, Pub. L. 89–329, title II, §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.
A prior section 1029, Pub. L. 89–329, title II, §209, as added Pub. L. 105–244, title II, §201, Oct. 7, 1998, 112 Stat. 1635; amended Pub. L. 107–110, title X, §1051(2), Jan. 8, 2002, 115 Stat. 2080, related to general provisions, prior to repeal by Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133.
Another prior section 1029, Pub. L. 89–329, title II, §211, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1384; amended Pub. L. 99–498, title II, §202, Oct. 17, 1986, 100 Stat. 1287; Pub. L. 102–325, title II, §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, §101(e) [title VII, §708(b)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
A prior section 1030, Pub. L. 89–329, title II, §210, as added Pub. L. 105–244, title II, §201, Oct. 7, 1998, 112 Stat. 1635; amended Pub. L. 107–110, title X, §1051(2), Jan. 8, 2002, 115 Stat. 2080, related to authorization of appropriations, prior to repeal by Pub. L. 110–315, title II, §201(2), Aug. 14, 2008, 122 Stat. 3133.
Another prior section 1030, Pub. L. 89–329, title II, §213, as added Pub. L. 99–498, title II, §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, §201, July 23, 1992, 106 Stat. 467.
A prior part B, consisting of sections 1041 to 1044, related to preparing tomorrow's teachers to use technology, prior to repeal by Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3154.
There are authorized to be appropriated to carry out this part such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.
(Pub. L. 89–329, title II, §230, as added Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3154.)
A prior section 1031, Pub. L. 89–329, title II, §221, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1385; amended Pub. L. 99–498, title II, §204(b)(1), Oct. 17, 1986, 100 Stat. 1289; Pub. L. 102–325, title II, §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, §101(e) [title VII, §708(b)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
Another prior section 1031, Pub. L. 89–329, title II, §221, as added Pub. L. 92–318, title I, §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, §221, Nov. 8, 1965, 79 Stat. 1227; Pub. L. 90–575, title II, §215, Oct. 16, 1968, 82 Stat. 1037; Pub. L. 92–318, title I, §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, §111(b)(3)(A), June 23, 1972, 86 Stat. 239.
The Secretary is authorized to award grants to, or enter into contracts or cooperative agreements with, eligible consortia to pay the Federal share of the costs of projects to—
(1) assist in the graduation of teacher candidates who are prepared to use modern information, communication, and learning tools to—
(A) improve student learning, assessment, and learning management; and
(B) help students develop learning skills to succeed in higher education and to enter the workforce;
(2) strengthen and develop partnerships among the stakeholders in teacher preparation to transform teacher education and ensure technology-rich teaching and learning environments throughout a teacher candidate's preservice education, including clinical experiences; and
(3) assess the effectiveness of departments, schools, and colleges of education at institutions of higher education in preparing teacher candidates for successful implementation of technology-rich teaching and learning environments, including environments consistent with the principles of universal design for learning, that enable kindergarten through grade 12 students to develop learning skills to succeed in higher education and to enter the workforce.
A grant, contract, or cooperative agreement under this subpart—
(1) shall be for not more than $2,000,000;
(2) shall be for a three-year period; and
(3) may be renewed for one additional year.
The Federal share of the cost of any project funded under this subpart shall not exceed 75 percent. The non-Federal share of the cost of such project may be provided in cash or in kind, fairly evaluated, including services.
In this subpart, the term “eligible consortium” means a consortium of members that includes the following:
(1) Not less than one institution of higher education that awards baccalaureate or masters degrees and prepares teachers for initial entry into teaching.
(2) Not less than one State educational agency or local educational agency.
(3) A department, school, or college of education at an institution of higher education.
(4) A department, school, or college of arts and sciences at an institution of higher education.
(5) Not less than one entity with the capacity to contribute to the technology-related reform of teacher preparation programs, which may be a professional association, foundation, museum, library, for-profit business, public or private nonprofit organization, community-based organization, or other entity.
(Pub. L. 89–329, title II, §231, as added Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3154; amended Pub. L. 111–39, title II, §201(3), July 1, 2009, 123 Stat. 1936.)
A prior section 1032, Pub. L. 89–329, title II, §222, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1385; amended Pub. L. 102–325, title II, §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, §101(e) [title VII, §708(b)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
Another prior section 1032, Pub. L. 89–329, title II, §222, Nov. 8, 1965, 79 Stat. 1227, defined the term “librarianship”, prior to repeal by Pub. L. 92–318, title I, §111(b)(3)(A), June 23, 1972, 86 Stat. 239.
A prior section 231 of Pub. L. 89–329 was classified to section 1041 of this title, prior to repeal by Pub. L. 104–208.
Another prior section 231 of Pub. L. 89–329 was classified to section 1041 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
Another prior section 231 of Pub. L. 89–329 was classified to section 1041 of this title, prior to the general amendment of former part C of this subchapter by Pub. L. 94–482.
2009—Subsec. (a)(1). Pub. L. 111–39 substituted “assist in the graduation of” for “serve graduate” in introductory provisions.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
An eligible consortium that receives a grant or enters into a contract or cooperative agreement under this subpart shall use funds made available under this subpart to carry out a project that—
(1) develops long-term partnerships among members of the consortium that are focused on effective teaching with modern digital tools and content that substantially connect preservice preparation of teacher candidates with high-need schools; or
(2) transforms the way departments, schools, and colleges of education teach classroom technology integration, including the principles of universal design, to teacher candidates.
In carrying out a project under subsection (a)(1), an eligible consortium shall—
(1) provide teacher candidates, early in their preparation, with field experiences with technology in educational settings;
(2) build the skills of teacher candidates to support technology-rich instruction, assessment and learning management in content areas, technology literacy, an understanding of the principles of universal design, and the development of other skills for entering the workforce;
(3) provide professional development in the use of technology for teachers, administrators, and content specialists who participate in field placement;
(4) provide professional development of technology pedagogical skills for faculty of departments, schools, and colleges of education and arts and sciences;
(5) implement strategies for the mentoring of teacher candidates by members of the consortium with respect to technology implementation;
(6) evaluate teacher candidates during the first years of teaching to fully assess outcomes of the project;
(7) build collaborative learning communities for technology integration within the consortium to sustain meaningful applications of technology in the classroom during teacher preparation and early career practice; and
(8) evaluate the effectiveness of the project.
In carrying out a project under subsection (a)(2), an eligible consortium shall—
(1) redesign curriculum to require collaboration between the department, school, or college of education faculty and the department, school, or college of arts and sciences faculty who teach content or methods courses for training teacher candidates;
(2) collaborate between the department, school, or college of education faculty and the department, school, or college of arts and science faculty and academic content specialists at the local educational agency to educate preservice teachers who can integrate technology and pedagogical skills in content areas;
(3) collaborate between the department, school, or college of education faculty and the department, school, or college of arts and sciences faculty who teach courses to preservice teachers to—
(A) develop and implement a plan for preservice teachers and continuing educators that demonstrates effective instructional strategies and application of such strategies in the use of digital tools to transform the teaching and learning process; and
(B) better reach underrepresented preservice teacher populations with programs that connect such preservice teacher populations with applications of technology;
(4) collaborate among faculty and students to create and disseminate case studies of technology applications in classroom settings with a goal of improving student academic achievement in high-need schools;
(5) provide additional technology resources for preservice teachers to plan and implement technology applications in classroom settings that provide evidence of student learning; and
(6) bring together expertise from departments, schools, or colleges of education, arts and science faculty, and academic content specialists at the local educational agency to share and disseminate technology applications in the classroom through teacher preparation and into early career practice.
(Pub. L. 89–329, title II, §232, as added Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3155.)
A prior section 232 of Pub. L. 89–329 was classified to section 1042 of this title, prior to repeal by Pub. L. 104–208.
Another prior section 232 of Pub. L. 89–329 was classified to section 1042 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
Another prior section 232 of Pub. L. 89–329 was classified to section 1042 of this title, prior to the general amendment of former part C of this subchapter by Pub. L. 94–482.
To be eligible to receive a grant or enter into a contract or cooperative agreement under this subpart, an eligible consortium 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 project to be carried out with the grant, including how the project will—
(A) develop a long-term partnership focused on effective teaching with modern digital tools and content that substantially connects preservice preparation of teacher candidates with high-need schools; or
(B) transform the way departments, schools, and colleges of education teach classroom technology integration, including the principles of universal design, to teacher candidates.
(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 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 the project.
(4) A description of how the State educational agency or local educational agency will incorporate the project into the agency's technology plan, if such a plan already exists.
(5) A description of how the project will be continued after Federal funds are no longer available under this subpart for the project.
(6) A description of how the project will incorporate—
(A) State teacher technology standards; and
(B) State student technology standards.
(7) A plan for the evaluation of the project, which shall include benchmarks to monitor progress toward specific project objectives.
(Pub. L. 89–329, title II, §233, as added Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3157.)
A prior section 233 of Pub. L. 89–329 was classified to section 1043 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
Not less than ten percent of the funds awarded to an eligible consortium to carry out a project under this subpart shall be used to evaluate the effectiveness of such project.
(Pub. L. 89–329, title II, §234, as added Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3157.)
A prior section 234 of Pub. L. 89–329 was classified to section 1044 of this title, prior to the general amendment of this subchapter by Pub. L. 96–374.
In this subpart:
The term “eligible institution” means—
(A) an institution of higher education that has a teacher preparation program that is a qualified teacher preparation program and that is—
(i) a part B institution (as defined in section 1061 of this title);
(ii) a Hispanic-serving institution (as defined in section 1101a of this title);
(iii) a Tribal College or University (as defined in section 1059c of this title);
(iv) an Alaska Native-serving institution (as defined in section 1059d(b) of this title);
(v) a Native Hawaiian-serving institution (as defined in section 1059d(b) of this title);
(vi) a Predominantly Black Institution (as defined in section 1059e of this title);
(vii) an Asian American and Native American Pacific Islander-serving institution (as defined in section 1059g(b) of this title); or
(viii) a Native American-serving, nontribal institution (as defined in section 1059f of this title);
(B) a consortium of institutions described in subparagraph (A); or
(C) an institution described in subparagraph (A), or a consortium described in subparagraph (B), in partnership with any other institution of higher education, but only if the center of excellence established under section 1033a of this title is located at an institution described in subparagraph (A).
The term “scientifically based reading research” has the meaning given such term in section 6368 of this title.
(Pub. L. 89–329, title II, §241, as added Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3158.)
A prior section 1033, Pub. L. 89–329, title II, §223, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1385; amended Pub. L. 99–498, title II, §205, Oct. 17, 1986, 100 Stat. 1289; Pub. L. 102–325, title II, §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, §101(e) [title VII, §708(b)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
Another prior section 1033, Pub. L. 89–329, title II, §222, formerly §223, Nov. 8, 1965, 79 Stat. 1227; Pub. L. 90–575, title II, §216, Oct. 16, 1968, 82 Stat. 1037, renumbered and amended Pub. L. 92–318, title I, §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 241 of Pub. L. 89–329 was classified to section 1047 of this title, prior to repeal by Pub. L. 104–208.
Another prior section 241 of Pub. L. 89–329 was classified to section 1047 of this title, prior to the general amendment of former part D of this subchapter by Pub. L. 99–498.
From the amounts appropriated to carry out this part, the Secretary is authorized to award competitive grants to eligible institutions to establish centers of excellence.
Grants provided by the Secretary under this subpart shall be used to ensure that current and future teachers are highly qualified by carrying out one or more of the following activities:
(1) Implementing reforms within teacher preparation programs to ensure that such programs are preparing teachers who are highly qualified, are able to understand scientifically valid research, and are able to use advanced technology effectively in the classroom, including use of instructional techniques to improve student academic achievement, by—
(A) retraining or recruiting faculty; and
(B) designing (or redesigning) teacher preparation programs that—
(i) prepare teachers to serve in low-performing schools and close student achievement gaps, and that are based on rigorous academic content, scientifically valid research (including scientifically based reading research and mathematics research, as it becomes available), and challenging State academic content standards and student academic achievement standards; and
(ii) promote strong teaching skills.
(2) Providing sustained and high-quality preservice clinical experience, including the mentoring of prospective teachers by exemplary teachers, 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) Developing and implementing initiatives to promote retention of highly qualified teachers and principals, including minority teachers and principals, including programs that provide—
(A) teacher or principal mentoring from exemplary teachers or principals, respectively; or
(B) induction and support for teachers and principals during their first three years of employment as teachers or principals, respectively.
(4) Awarding scholarships based on financial need to help students pay the costs of tuition, room, board, and other expenses of completing a teacher preparation program, not to exceed the cost of attendance.
(5) Disseminating information on effective practices for teacher preparation and successful teacher certification and licensure assessment preparation strategies.
(6) Activities authorized under section 1022a of this title.
Any eligible institution desiring a grant under this subpart shall submit an application to the Secretary at such a time, in such a manner, and accompanied by such information as the Secretary may require.
The minimum amount of each grant under this subpart shall be $500,000.
An eligible institution that receives a grant under this subpart may use not more than two percent of the funds provided to administer the grant.
The Secretary shall prescribe such regulations as may be necessary to carry out this subpart.
(Pub. L. 89–329, title II, §242, as added Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3158.)
A prior section 242 of Pub. L. 89–329 was classified to section 1047a of this title, prior to the general amendment of former part D of this subchapter by Pub. L. 99–498.
The Secretary is authorized to award grants, on a competitive basis, to eligible partnerships to improve the preparation of general education teacher candidates to ensure that such teacher candidates possess the knowledge and skills necessary to effectively instruct students with disabilities in general education classrooms.
A grant under this section shall be awarded for a period of not more than five years.
An eligible partnership that receives a grant under this section shall provide not less than 25 percent of the cost of the activities carried out with such grant from non-Federal sources, which may be provided in cash or in kind.
In this section, the term “eligible partnership” means a partnership that—
(1) shall include—
(A) one or more departments or programs at an institution of higher education—
(i) that prepare elementary or secondary general education teachers;
(ii) that have a program of study that leads to an undergraduate degree, a master's degree, or completion of a postbaccalaureate program required for teacher certification; and
(iii) the graduates of which are highly qualified;
(B) a department or program of special education at an institution of higher education;
(C) a department or program at an institution of higher education that provides degrees in core academic subjects; and
(D) a high-need local educational agency; and
(2) may include a department or program of mathematics, earth or physical science, foreign language, or another department at the institution that has a role in preparing teachers.
An eligible partnership that receives a grant under this section—
(1) shall use the grant funds to—
(A) develop or strengthen an undergraduate, postbaccalaureate, or master's teacher preparation program by integrating special education strategies into the general education curriculum and academic content;
(B) provide teacher candidates participating in the program under subparagraph (A) with skills related to—
(i) response to intervention, positive behavioral interventions and supports, differentiated instruction, and data driven instruction;
(ii) universal design for learning;
(iii) determining and utilizing accommodations for instruction and assessments;
(iv) collaborating with special educators, related services providers, and parents, including participation in individualized education program development and implementation; and
(v) appropriately utilizing technology and assistive technology for students with disabilities; and
(C) provide extensive clinical experience for participants described in subparagraph (B) with mentoring and induction support throughout the program that continues during the first two years of full-time teaching; and
(2) may use grant funds to develop and administer alternate assessments of students with disabilities.
An eligible partnership seeking a grant under this section 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—
(1) a self-assessment by the eligible partnership of the existing teacher preparation program at the institution of higher education and needs related to preparing general education teacher candidates to instruct students with disabilities; and
(2) an assessment of the existing personnel needs for general education teachers who instruct students with disabilities, performed by the local educational agency in which most graduates of the teacher preparation program are likely to teach after completion of the program under subsection (c)(1).
The Secretary shall convene a peer review committee to review applications for grants under this section and to make recommendations to the Secretary regarding the selection of grantees. Members of the peer review committee shall be recognized experts in the fields of special education, teacher preparation, and general education and shall not be in a position to benefit financially from any grants awarded under this section.
An eligible partnership receiving a grant under this section shall conduct an evaluation at the end of the grant period to determine—
(i) the effectiveness of the general education teachers who completed a program under subsection (c)(1) with respect to instruction of students with disabilities in general education classrooms; and
(ii) the systemic impact of the activities carried out by such grant on how each institution of higher education that is a member of the partnership prepares teachers for instruction in elementary schools and secondary schools.
Each eligible partnership performing an evaluation under subparagraph (A) shall report the findings of such evaluation to the Secretary.
Not later than 180 days after the last day of the grant period under this section, the Secretary shall make available to Congress and the public the findings of the evaluations submitted under paragraph (1), and information on best practices related to effective instruction of students with disabilities in general education classrooms.
(Pub. L. 89–329, title II, §251, as added Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3159.)
A prior section 1034, Pub. L. 89–329, title II, §224, as added Pub. L. 102–325, title II, §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, §101(e) [title VII, §708(b)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
Another prior section 1034, Pub. L. 89–329, title II, §224, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1385, authorized special purpose grants, prior to repeal by Pub. L. 99–498, title II, §204(a), Oct. 17, 1986, 100 Stat. 1289.
Another prior section 1034, Pub. L. 89–329, title II, §223, formerly §224, Nov. 8, 1965, 79 Stat. 1228, Pub. L. 91–230, title IV, §401(h)(4), Apr. 13, 1970, 84 Stat. 174, and renumbered Pub. L. 92–318, title I, §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.
A prior section 251 of Pub. L. 89–329 was classified to section 1047j of this title, prior to the general amendment of former part D of this subchapter by Pub. L. 99–498.
The purpose of this section is to create opportunities for professionals and other individuals with subject matter expertise in mathematics, science, or critical foreign languages to provide such subject matter expertise to secondary school students on an adjunct basis.
The Secretary is authorized to award grants on a competitive basis to eligible entities to identify, recruit, and train qualified individuals with subject matter expertise in mathematics, science, or critical foreign languages to serve as adjunct content specialists.
The Secretary may award grants under this section for a period of not more than five years.
In this section, the term “eligible entity” means—
(1) a local educational agency; or
(2) a partnership consisting of a local educational agency, serving as a fiscal agent, and a public or private educational organization or business.
An eligible entity that receives a grant under this section is authorized to use such grant to carry out one or both of the following activities:
(1) To develop the capacity of the eligible entity to identify, recruit, and train individuals with subject matter expertise in mathematics, science, or critical foreign languages who are not employed in the elementary and secondary education system (including individuals in business and government, and individuals who would participate through distance-learning arrangements) to become adjunct content specialists.
(2) To provide preservice training and on-going professional development to adjunct content specialists.
An eligible entity that desires a grant under this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.
An application submitted under paragraph (1) shall include—
(A) a description of—
(i) the need for, and expected benefits of using, adjunct content specialists in the schools served by the local educational agency, which may include information on the difficulty the local educational agency faces in recruiting qualified faculty in mathematics, science, and critical foreign language courses;
(ii) measurable objectives for the activities supported by the grant, including the number of adjunct content specialists the eligible entity intends to place in schools and classrooms, and the gains in academic achievement expected as a result of the addition of such specialists;
(iii) how the eligible entity will establish criteria for and recruit the most qualified individuals and public or private organizations and businesses to participate in the activities supported by the grant;
(iv) how the eligible entity will provide preservice training and on-going professional development to adjunct content specialists to ensure that such specialists have the capacity to serve effectively;
(v) how the eligible entity will use funds received under this section, including how the eligible entity will evaluate the success of the activities supported by the grant; and
(vi) how the eligible entity will support and continue the activities supported by the grant after the grant has expired, including how such entity will seek support from other sources, such as State and local government and the private sector; and
(B) an assurance that the use of adjunct content specialists will not result in the displacement or transfer of currently employed teachers nor a reduction in the number of overall teachers in the district.
In awarding grants under this section, the Secretary shall give priority to eligible entities that demonstrate in the application for such a grant a plan to—
(1) serve the schools served by the local educational agency that have a large number or percentage of students performing below grade level in mathematics, science, or critical foreign language courses;
(2) serve local educational agencies that have a large number or percentage of students from low-income families; and
(3) recruit and train individuals to serve as adjunct content specialists in schools that have an insufficient number of teachers in mathematics, science, or critical foreign languages.
Each eligible entity that receives a grant under this section shall provide, from non-Federal sources, an amount equal to 100 percent of the amount of such grant (in cash or in kind) to carry out the activities supported by such grant.
Each eligible entity receiving a grant under this section shall prepare and submit to the Secretary a final report on the results of the activities supported by such grant, which shall contain such information as the Secretary may require, including any improvements in student academic achievement as a result of the use of adjunct content specialists.
The Secretary shall evaluate the activities supported by grants under this section, including the impact of such activities on student academic achievement, and shall report the results of such evaluation to the authorizing committees.
In this section, the term “adjunct content specialist” means an individual who—
(1) meets the requirements of section 7801(23)(B)(ii) of this title;
(2) has demonstrated expertise in mathematics, science, or a critical foreign language, as determined by the local educational agency; and
(3) is not the primary provider of instructional services to a student, unless the adjunct content specialist is under the direct supervision of a teacher who meets the requirements of section 7801(23) of this title.
(Pub. L. 89–329, title II, §255, as added Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3161.)
The Secretary shall make grants to eligible institutions to enable such institutions to make graduate fellowship awards to qualified individuals in accordance with the provisions of this section.
In this section, the term “eligible institution” means an institution of higher education, or a consortium of such institutions, that offers a program of postbaccalaureate study leading to a doctoral degree.
An eligible institution that desires a grant 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.
An eligible institution that receives a grant under this section shall use the grant funds to provide graduate fellowships to individuals who are preparing for the professorate in order to prepare individuals to become highly qualified elementary school and secondary school mathematics and science teachers, special education teachers, and teachers who provide instruction for limited English proficient students.
A graduate fellowship provided under this section shall support an individual in pursuing postbaccalaureate study, which leads to a doctoral degree and may include a master's degree as part of such study, related to teacher preparation and pedagogy in one of the following areas:
(A) Science, technology, engineering, or mathematics, if the individual has completed a master's degree in mathematics or science and is pursuing a doctoral degree in mathematics, science, or education.
(B) Special education.
(C) The instruction of limited English proficient students, including postbaccalaureate study in language instruction educational programs.
The Secretary shall ensure that an eligible institution that receives a grant under this section—
(A) shall provide graduate fellowship awards to individuals who plan to pursue a career in instruction at an institution of higher education that has a teacher preparation program; and
(B) may not provide a graduate fellowship to an otherwise eligible individual—
(i) during periods in which such individual is enrolled at an institution of higher education unless such individual is maintaining satisfactory academic progress in, and devoting full-time study or research to, the pursuit of the degree for which the fellowship support was provided; or
(ii) if the individual is engaged in gainful employment, other than part-time employment related to teaching, research, or a similar activity determined by the institution to be consistent with and supportive of the individuals's 1 progress toward the degree for which the fellowship support was provided.
An eligible institution that receives a grant under this section shall award stipends to individuals who are provided graduate fellowships under this section.
A stipend provided under this section shall be in an amount equal to the level of support provided by the National Science Foundation graduate fellowships, except that such stipend shall be adjusted as necessary so as not to exceed the fellowship recipient's demonstrated need, as determined by the institution of higher education where the fellowship recipient is enrolled.
Each individual who receives a graduate fellowship under this section and earns a doctoral degree shall teach for one year at an institution of higher education that has a teacher preparation program for each year of fellowship support received under this section.
Each eligible institution that receives a grant under this section shall provide an assurance to the Secretary that the institution has inquired of and determined the decision of each individual who has received a graduate fellowship to, within three years of receiving a doctoral degree, begin employment at an institution of higher education that has a teacher preparation program, as required by this section.
Prior to receiving an initial graduate fellowship award, and upon the annual renewal of the graduate fellowship award, an individual selected to receive a graduate fellowship under this section shall sign an agreement with the Secretary agreeing to pursue a career in instruction at an institution of higher education that has a teacher preparation program in accordance with subparagraph (A).
If an individual who receives a graduate fellowship award under this section fails to comply with the agreement signed pursuant to subparagraph (C), the sum of the amounts of any graduate fellowship award received by such recipient shall, upon a determination of such a failure, be treated as a Federal Direct Unsubsidized Stafford Loan under part C of subchapter IV, and shall be subject to repayment, together with interest thereon accruing from the date of the fellowship award, in accordance with terms and conditions specified by the Secretary in regulations under this subpart.
The Secretary may waive or modify the service requirement of this paragraph in accordance with regulations promulgated by the Secretary with respect to the criteria to determine the circumstances under which compliance with such service requirement is inequitable or represents a substantial hardship. The Secretary may waive the service requirement if compliance by the fellowship recipient is determined to be inequitable or represent a substantial hardship—
(i) because the individual is permanently and totally disabled at the time of the waiver request; or
(ii) based on documentation presented to the Secretary of substantial economic or personal hardship.
An eligible institution that receives a grant under this section may reserve not more than ten percent of the grant amount for academic and career transition support for graduate fellowship recipients and for meeting the institutional obligation described in subsection (e)(3)(B).
An eligible institution that receives a grant under this section may not use grant funds for general operational overhead of the institution.
(Pub. L. 89–329, title II, §258, as added Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3163.)
1 So in original. Probably should be “individual's”.
Nothing in this subchapter 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 subchapter.
Nothing in this subchapter 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.
Nothing in this subchapter shall be construed to permit, allow, encourage, or authorize the Secretary to establish or support any national system of teacher certification or licensure.
Nothing in this subchapter shall be construed to alter or otherwise affect the rights, remedies, and procedures afforded to the employees of local educational agencies under Federal, State, or local laws (including applicable regulations or court orders) or under the terms of collective bargaining agreements, memoranda of understanding, or other agreements between such employees and their employers.
(Pub. L. 89–329, title II, §261, as added Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3166.)
A prior section 1041, Pub. L. 89–329, title II, §221, as added Pub. L. 107–110, title X, §1051(3), Jan. 8, 2002, 115 Stat. 2080, set out purpose and program authority for teacher preparation programs to enable teachers to use advanced technology in the classroom, prior to repeal by Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3154.
Another prior section 1041, Pub. L. 89–329, title II, §231, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1386; amended Pub. L. 99–498, title II, §§204(b)(2), 206, Oct. 17, 1986, 100 Stat. 1289; Pub. L. 102–325, title II, §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, §101(e) [title VII, §708(b)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
Another prior section 1041, Pub. L. 89–329, title II, §231, as added Pub. L. 94–482, title I, §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, §231, Nov. 8, 1965, 79 Stat. 1228; Pub. L. 90–575, title II, §§217, 218, Oct. 16, 1968, 82 Stat. 1037; Pub. L. 92–318, title I, §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, §107, Oct. 12, 1976, 90 Stat. 2090.
A prior section 1042, Pub. L. 89–329, title II, §222, as added Pub. L. 107–110, title X, §1051(3), Jan. 8, 2002, 115 Stat. 2081, related to eligibility to receive a grant or enter into a contract or cooperative agreement under sections 1041 to 1044 of this title, prior to repeal by Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3154.
Another prior section 1042, Pub. L. 89–329, title II, §232, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1386; amended Pub. L. 102–325, title II, §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, §101(e) [title VII, §708(b)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–312.
Another prior section 1042, Pub. L. 89–329, title II, §232, as added Pub. L. 94–482, title I, §107, Oct. 12, 1976, 90 Stat. 2090; amended Pub. L. 96–49, §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, §232, as added Pub. L. 92–318, title I, §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, §107, Oct. 12, 1976, 90 Stat. 2090.
A prior section 1043, Pub. L. 89–329, title II, §223, as added Pub. L. 107–110, title X, §1051(3), Jan. 8, 2002, 115 Stat. 2082, related to use of funds, prior to repeal by Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3154.
Another prior section 1043, Pub. L. 89–329, title II, §233, as added Pub. L. 94–482, title I, §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 1044, Pub. L. 89–329, title II, §224, as added Pub. L. 107–110, title X, §1051(3), Jan. 8, 2002, 115 Stat. 2083, related to authorization of appropriations, prior to repeal by Pub. L. 110–315, title II, §201(3), Aug. 14, 2008, 122 Stat. 3154.
Another prior section 1044, Pub. L. 89–329, title II, §234, as added Pub. L. 94–482, title I, §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.
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, §235, as added Pub. L. 94–482, title I, §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, §236, as added Pub. L. 94–482, title I, §107, Oct. 12, 1976, 90 Stat. 2091, required consultations by grantees with State agencies.
A prior section 1047, Pub. L. 89–329, title II, §241, as added Pub. L. 99–498, title II, §207, Oct. 17, 1986, 100 Stat. 1289; amended Pub. L. 102–325, title II, §201, July 23, 1992, 106 Stat. 471; Pub. L. 103–208, §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, §101(e) [title VII, §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, §241, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1386, stated congressional declaration of purpose.
Section 1047a, Pub. L. 89–329, title II, §242, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1387, established National Periodical System Corporation.
Section 1047b, Pub. L. 89–329, title II, §243, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1387, related to functions of National Periodical System Corporation.
Section 1047c, Pub. L. 89–329, title II, §244, as added Pub. L. 96–374, title II, §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, §245, as added Pub. L. 96–374, title II, §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, §246, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1388, related to nonprofit nature of National Periodical System Corporation.
Section 1047f, Pub. L. 89–329, title II, §247, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1388, related to authority of National Periodical System Corporation.
Section 1047g, Pub. L. 89–329, title II, §248, as added Pub. L. 96–374, title II, §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, §249, as added Pub. L. 96–374, title II, §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, §250, as added Pub. L. 96–374, title II, §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, §251, as added Pub. L. 96–374, title II, §201, Oct. 3, 1980, 94 Stat. 1390, authorized appropriations to carry out former part D of this subchapter.
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, §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.
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.
It is the purpose of this subchapter to assist such institutions in equalizing educational opportunity through a program of Federal assistance.
(Pub. L. 89–329, title III, §301, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1290; amended Pub. L. 102–325, title III, §301, July 23, 1992, 106 Stat. 472; Pub. L. 103–208, §2(a)(4), Dec. 20, 1993, 107 Stat. 2457; Pub. L. 105–244, title III, §302, Oct. 7, 1998, 112 Stat. 1637.)
A prior section 1051, Pub. L. 89–329, title III, §301, as added Pub. L. 96–374, title III, §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, §301, Nov. 8, 1965, 79 Stat. 1229; Pub. L. 89–752, §10, Nov. 3, 1966, 80 Stat. 1243; Pub. L. 90–575, title II, §§221, 222, Oct. 16, 1968, 82 Stat. 1038; Pub. L. 92–318, title I, §121(a), June 23, 1972, 86 Stat. 241; Pub. L. 94–482, title I, §111, Oct. 12, 1976, 90 Stat. 2091; Pub. L. 96–49, §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, §302, Nov. 8, 1965, 79 Stat. 1229; Pub. L. 92–318, title I, §121(a), June 23, 1972, 86 Stat. 241; Pub. L. 93–380, title VIII, §832, Aug. 21, 1974, 88 Stat. 603; Pub. L. 94–482, title I, §112, Oct. 12, 1976, 90 Stat. 2091, related to eligibility for special assistance.
Section 1053, Pub. L. 89–329, title III, §303, Nov. 8, 1965, 79 Stat. 1230; Pub. L. 91–230, title IV, §401(h)(4), Apr. 13, 1970, 84 Stat. 174; Pub. L. 92–318, title I, §121(a), title III, §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, §304, Nov. 8, 1965, 79 Stat. 1230; Pub. L. 92–318, title I, §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, §305, Nov. 8, 1965, 79 Stat. 1231; Pub. L. 92–318, title I, §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, §306, as added Pub L. 90–575, title II, §223(a), Oct. 16, 1968, 82 Stat. 1038; amended Pub. L. 92–318, title I, §121(a), June 23, 1972, 86 Stat. 245, prohibited the use of funds for religious activities.
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, §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, §301(2), struck out “recruitment activities,” after “long-range planning,”.
Subsec. (a)(5). Pub. L. 102–325, §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;”.
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.
Section 5 of Pub. L. 103–208 provided that:
“(a)
“(b)
“(1)
“(2)
“(3)
“(4)
“(5)
“(6)
“(7)
“(8)
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.
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.”
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.
(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 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, including services that will assist in the education of special populations.
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, including innovative, customized, instruction courses designed to help retain students and move the students rapidly into core courses and through program completion, which may include remedial education and English language instruction.
(7) Education or counseling services designed to improve the financial literacy and economic literacy of students or the students’ families.
(8) Funds management, administrative management, and acquisition of equipment for use in strengthening funds management.
(9) Joint use of facilities, such as laboratories and libraries.
(10) Establishing or improving a development office to strengthen or improve contributions from alumni and the private sector.
(11) Establishing or improving an endowment fund.
(12) Creating or improving facilities for Internet or other distance education technologies, including purchase or rental of telecommunications technology equipment or services.
(13) Other activities proposed in the application submitted pursuant to subsection (b) and section 1068 of this title 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.
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.
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.
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).
(Pub. L. 89–329, title III, §311, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1291; amended Pub. L. 100–50, §2(a)(1), June 3, 1987, 101 Stat. 335; Pub. L. 105–244, title III, §§301(c)(1), 303(a), Oct. 7, 1998, 112 Stat. 1636, 1638; Pub. L. 110–315, title III, §301, Aug. 14, 2008, 122 Stat. 3166.)
A prior section 1057, Pub. L. 89–329, title III, §311, as added Pub. L. 96–374, title III, §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.
2008—Subsec. (b)(1). Pub. L. 110–315, §301(1)(A), made technical amendment to reference in original act which appears in text as reference to section 1068 of this title.
Subsec. (b)(3)(F). Pub. L. 110–315, §301(1)(B), inserted “, including services that will assist in the education of special populations” before period at end.
Subsec. (c)(6). Pub. L. 110–315, §301(2)(A), inserted “, including innovative, customized, instruction courses designed to help retain students and move the students rapidly into core courses and through program completion, which may include remedial education and English language instruction” before period at end.
Subsec. (c)(7) to (13). Pub. L. 110–315, §301(2)(B)–(E), added par. (7), redesignated former pars. (7) to (12) as pars. (8) to (13), respectively, in par. (12), substituted “distance education technologies” for “distance learning academic instruction capabilities” and, in introductory provisions of par. (13), substituted “subsection (b) and section 1068 of this title” for “subsection (c)”.
1998—Subsec. (b)(1). Pub. L. 105–244, §301(c)(1), substituted “section 1068h(a)(1)” for “section 1069f(a)(1)”.
Subsecs. (c), (d). Pub. L. 105–244, §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”.
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. 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.
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.
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 (d);
(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,1 the factor described under paragraph (1)(A) shall be given twice the weight of the factor described under paragraph (1)(B).
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.
Except as provided in section 1059e(b) of this title, 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 paragraph is waived under section 1068a(a) of this title.
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.
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.
For the purpose of this part, 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.
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.
(Pub. L. 89–329, title III, §312, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1292; amended Pub. L. 100–50, §2(a)(2)–(6), June 3, 1987, 101 Stat. 335; Pub. L. 100–369, §10(a), July 18, 1988, 102 Stat. 837; Pub. L. 102–325, title III, §302(a), (b), July 23, 1992, 106 Stat. 472; Pub. L. 103–208, §2(a)(5), Dec. 20, 1993, 107 Stat. 2457; Pub. L. 103–382, title III, §353, Oct. 20, 1994, 108 Stat. 3966; Pub. L. 105–244, title III, §§301(c)(2), 303(b), Oct. 7, 1998, 112 Stat. 1636, 1639; Pub. L. 110–315, title III, §§302, 305(b), Aug. 14, 2008, 122 Stat. 3167, 3173.)
A prior section 1058, Pub. L. 89–329, title III, §312, as added Pub. L. 96–374, title III, §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.
2008—Subsec. (b)(1)(A). Pub. L. 110–315, §302(1), substituted “subsection (d)” for “subsection (c) of this section”.
Subsec. (d). Pub. L. 110–315, §305(b), substituted “Except as provided in section 1059e(b) of this title, for the purpose” for “For the purpose” in introductory provisions.
Subsec. (d)(2). Pub. L. 110–315, §302(2), substituted “paragraph” for “subdivision”.
Subsecs. (g), (h). Pub. L. 110–315, §302(3), (4), added subsec. (g) and redesignated former subsec. (g) as (h).
1998—Subsec. (b)(1)(B). Pub. L. 105–244, §301(c)(2)(A), substituted “section 1068a(b)” for “section 1067(b)”.
Subsec. (c). Pub. L. 105–244, §303(b)(2), added subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (c)(2). Pub. L. 105–244, §301(c)(2)(B), substituted “section 1068a(a)” for “section 1067(a)”.
Subsecs. (d) to (g). Pub. L. 105–244, §303(b)(1), redesignated subsecs. (c) to (f) as (d) to (g), respectively.
1994—Subsec. (b)(1)(C). Pub. L. 103–382, §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, §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, §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, §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, §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, §2(a)(2)(A), inserted “which” before “is” wherever appearing.
Subsec. (b)(1)(E). Pub. L. 100–50, §2(a)(2)(B), inserted “which” before “has”.
Subsec. (b)(1)(F). Pub. L. 100–50, §2(a)(2)(C), inserted “which” before “meets”.
Subsec. (b)(3), (5). Pub. L. 100–50, §2(a)(3), (4), substituted “subparagraphs (A), (B), (C), and (D)” for “subparagraphs (A) and (B)”.
Subsec. (c)(1). Pub. L. 100–50, §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, §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”.
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. 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. 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 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.
1 So in original. Probably should be “subsection,”.
The Secretary may award a grant to an eligible institution under this part for 5 years.
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.
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.
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.
(Pub. L. 89–329, title III, §313, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1294; amended Pub. L. 102–325, title III, §302(c), July 23, 1992, 106 Stat. 472; Pub. L. 103–208, §2(a)(6), Dec. 20, 1993, 107 Stat. 2457; Pub. L. 105–244, title III, §§301(c)(3), 303(c), Oct. 7, 1998, 112 Stat. 1637, 1639.)
A prior section 1059, Pub. L. 89–329, title III, §313, as added Pub. L. 96–374, title III, §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.
1998—Subsec. (b). Pub. L. 105–244, §303(c)(1), inserted “subsection (c) of this section and a grant under” after “this subsection a grant under”.
Pub. L. 105–244, §301(c)(3), substituted “section 1068c(a)(1)” for “section 1069(a)(1)”.
Subsec. (d). Pub. L. 105–244, §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.
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. 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. 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.
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.
(Pub. L. 89–329, title III, §314, as added Pub. L. 105–244, title III, §303(d), Oct. 7, 1998, 112 Stat. 1639.)
A prior section 1059a, Pub. L. 89–329, title III, §314, as added Pub. L. 100–50, §2(b), June 3, 1987, 101 Stat. 336, related to application review process, prior to repeal by Pub. L. 105–244, §3, title III, §303(d), Oct. 7, 1998, 112 Stat. 1585, 1639, effective Oct. 1, 1998.
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.
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.
Any continuation application shall demonstrate the progress made toward achievement of the goals described pursuant to subsection (a) of this section.
(Pub. L. 89–329, title III, §315, as added Pub. L. 102–325, title III, §302(d)(1), July 23, 1992, 106 Stat. 472.)
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.
The Secretary shall provide grants and related assistance to Tribal Colleges and Universities to enable such institutions to improve and expand their capacity to serve Indian students.
In this section:
The term “Indian” has the meaning given the term in section 2 of the Tribally Controlled Colleges and Universities Assistance Act of 1978 [25 U.S.C. 1801].
The term “Indian tribe” has the meaning given the term in section 2 of the Tribally Controlled Colleges and Universities Assistance Act of 1978 [25 U.S.C. 1801].
The term “Tribal College or University” means an institution that—
(A) qualifies for funding under the Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.) or the Navajo Community College Act (25 U.S.C. 640a note); 1 or
(B) is cited in section 532 of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note).
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.
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.
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, and the acquisition of real property adjacent to the campus of the institution on which to construct such facilities;
(C) support of faculty exchanges, faculty development, and faculty fellowships to assist in attaining advanced degrees in the faculty's field of instruction or in tribal governance or tribal public policy;
(D) academic instruction in disciplines in which Indians are underrepresented and instruction in tribal governance or tribal public policy;
(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) education or counseling services designed to improve the financial literacy and economic literacy of students or the students’ families;
(H) funds management, administrative management, and acquisition of equipment for use in strengthening funds management;
(I) joint use of facilities, such as laboratories and libraries;
(J) establishing or improving a development office to strengthen or improve contributions from alumni and the private sector;
(K) 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;
(L) 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;
(M) developing or improving facilities for Internet use or other distance education technologies; and
(N) 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 (M); and
(ii) are approved by the Secretary as part of the review and acceptance of such application.
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.
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.
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).
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.
A Tribal College or University desiring to receive assistance 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.
The Secretary shall establish application requirements in such a manner as to simplify and streamline the process for applying for grants under this section.
Of the amount appropriated to carry out this section for any fiscal year, the Secretary may reserve 30 percent for the purpose of awarding one-year grants of not less than $1,000,000 to address construction, maintenance, and renovation needs at eligible institutions.
In providing grants under clause (i) for any fiscal year, the Secretary shall give preference to eligible institutions that have not received an award under this section for a previous fiscal year.
Except as provided in clause (ii), the Secretary shall distribute the remaining funds appropriated for any fiscal year to each eligible institution as follows:
(I) 60 percent of the remaining appropriated funds shall be distributed among the eligible Tribal Colleges and Universities on a pro rata basis, based on the respective Indian student counts (as defined in section 2(a) of the Tribally Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1801(a)) 2 of the Tribal Colleges and Universities.
(II) The remaining 40 percent shall be distributed in equal shares to the eligible Tribal Colleges and Universities.
The amount distributed to a Tribal College or University under clause (i) shall not be less than $500,000.
No Tribal College or University that receives funds under this section shall concurrently receive funds under any other provision of this part, part B, or part A of subchapter V.
Section 1059(d) of this title shall not apply to institutions that are eligible to receive funds under this section.
(Pub. L. 89–329, title III, §316, as added Pub. L. 102–325, title III, §302(d)(1), July 23, 1992, 106 Stat. 473; amended Pub. L. 103–208, §2(a)(7), Dec. 20, 1993, 107 Stat. 2457; Pub. L. 105–244, title III, §303(e), Oct. 7, 1998, 112 Stat. 1639; Pub. L. 106–211, §1(a), (b)(1), May 26, 2000, 114 Stat. 330; Pub. L. 110–315, title III, §303, Aug. 14, 2008, 122 Stat. 3167; Pub. L. 111–39, title III, §301(1), July 1, 2009, 123 Stat. 1936.)
The Tribally Controlled Colleges and Universities Assistance Act of 1978, referred to in subsec. (b)(3)(A), is Pub. L. 95–471, Oct. 17, 1978, 92 Stat. 1325, which is classified principally to chapter 20 (§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.
The Navajo Community College Act, referred to in subsec. (b)(3)(A), is Pub. L. 92–189, Dec. 15, 1971, 85 Stat. 646, 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.
Section 532 of the Equity in Educational Land-Grant Status Act of 1994, referred to in subsec. (b)(3)(B), is section 532 of Pub. L. 103–382, which is set out in a note under section 301 of Title 7, Agriculture.
2009—Subsec. (a). Pub. L. 111–39, §301(1)(A), substituted “Tribal” for “Indian Tribal”.
Subsec. (b)(1), (2). Pub. L. 111–39, §301(1)(B)(i), (ii), substituted “the Tribally Controlled Colleges and Universities Assistance Act of 1978” for “the Tribally Controlled College or University Assistance Act of 1978”.
Subsec. (b)(3)(A). Pub. L. 111–39, §301(1)(B)(iii), substituted “the Navajo Community College Act” for “the Navajo Community College Assistance Act of 1978”.
2008—Subsec. (b)(3). Pub. L. 110–315, §303(1), added par. (3) and struck out former par. (3). Prior to amendment, text read as follows: “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.
Subsec. (c)(2)(B). Pub. L. 110–315, §303(2)(A), added subpar. (B) and struck out former subpar. (B) which read as follows: “construction, maintenance, renovation, and improvement in classrooms, libraries, laboratories, and other instructional facilities, including purchase or rental of telecommunications technology equipment or services;”.
Subsec. (c)(2)(C). Pub. L. 110–315, §303(2)(B), inserted “or in tribal governance or tribal public policy” before semicolon at end.
Subsec. (c)(2)(D). Pub. L. 110–315, §303(2)(C), inserted “and instruction in tribal governance or tribal public policy” before semicolon at end.
Subsec. (c)(2)(G) to (N). Pub. L. 110–315, §303(2)(D)–(H), added subpars. (G) and (M), redesignated former subpars. (G), (H), (I), (J), (K), and (L) as subpars. (H), (I), (J), (K), (L), and (N), respectively, and in subpar. (N)(i) substituted “subparagraphs (A) through (M)” for “subparagraphs (A) through (K)”.
Subsec. (d). Pub. L. 110–315, §303(3), added subsec. (d) and struck out former subsec. (d) which related to the application process for assistance under this section.
2000—Subsec. (d)(2). Pub. L. 106–211, §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, §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)
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 106–211, §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].”
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. 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 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.
1 See References in Text note below.
2 So in original. Probably should be followed by a third closing parenthesis.
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.
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.
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.
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;
(H) academic tutoring and counseling programs and student support services; and
(I) education or counseling services designed to improve the financial literacy and economic literacy of students or the students’ families.
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.
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.
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.
Section 1059(d) of this title shall not apply to institutions that are eligible to receive funds under this section.
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.
(Pub. L. 89–329, title III, §317, as added Pub. L. 105–244, title III, §303(f), Oct. 7, 1998, 112 Stat. 1641; amended Pub. L. 106–211, §1(a), (b)(2), May 26, 2000, 114 Stat. 330; Pub. L. 107–110, title VII, §702(a), Jan. 8, 2002, 115 Stat. 1946; Pub. L. 110–315, title III, §304, Aug. 14, 2008, 122 Stat. 3169.)
2008—Subsec. (c)(2)(I). Pub. L. 110–315 added subpar. (I).
2002—Subsec. (b)(1). Pub. L. 107–110, §702(a)(1), substituted “section 7546” for “section 7938”.
Subsec. (b)(3). Pub. L. 107–110, §702(a)(2), substituted “section 7517” for “section 7912”.
2000—Subsec. (d)(2). Pub. L. 106–211, §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, §1(b)(2), added par. (3).
Subsec. (e). Pub. L. 106–211, §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.”
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.
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.
It is the purpose of this section to assist Predominantly Black Institutions in expanding educational opportunity through a program of Federal assistance.
In this section:
The term “eligible institution” means an institution of higher education that—
(A) has an enrollment of needy undergraduate students;
(B) has an average educational and general expenditure that is low, per full-time equivalent undergraduate student, in comparison with the average educational and general expenditure per full-time equivalent undergraduate student of institutions that offer similar instruction, except that the Secretary may apply the waiver requirements described in section 1068a(b) of this title to this subparagraph in the same manner as the Secretary applies the waiver requirements to section 1058(b)(1)(B) of this title;
(C) has an enrollment of undergraduate students that is not less than 40 percent Black American students;
(D) is legally authorized to provide, and provides, within the State an educational program for which the institution of higher education awards a baccalaureate degree or, in the case of a junior or community college, an associate's degree;
(E) 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; and
(F) is not receiving assistance under—
(i) part B;
(ii) part A of subchapter V; or
(iii) an annual authorization of appropriations under the Act of March 2, 1867 (14 Stat. 438; 20 U.S.C. 123).
The term “enrollment of needy students” means the enrollment at an eligible institution with respect to which not less than 50 percent of the undergraduate students enrolled in an academic program leading to a degree—
(A) in the second fiscal year preceding the fiscal year for which the determination is made, were Federal Pell Grant recipients for such year;
(B) come from families that receive benefits under a means-tested Federal benefit program;
(C) attended a public or nonprofit private secondary school that—
(i) is in the school district of a local educational agency that was eligible for assistance under part A of title I of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6311 et seq.] for any year during which the student attended such secondary school; and
(ii) for the purpose of this paragraph and for such year of attendance, was 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 meeting a measure of poverty under section 1113(a)(5) of such Act [20 U.S.C. 6313(a)(5)] exceeds 30 percent of the total enrollment of such school; or
(D) are first-generation college students and a majority of such first-generation college students are low-income individuals.
The term “first-generation college student” has the meaning given the term in section 1070a–11(h) of this title.
The term “low-income individual” has the meaning given such term in section 1070a–11(h) of this title.
The term “means-tested Federal benefit program” means a program of the Federal Government, other than a program under subchapter IV of this chapter 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.
The term “Predominantly Black Institution” means an institution of higher education, as defined in section 1001(a) of this title—
(A) that is an eligible institution with not less than 1,000 undergraduate students;
(B) at which not less than 50 percent of the undergraduate students enrolled at the eligible institution are low-income individuals or first-generation college students; and
(C) at which not less than 50 percent of the undergraduate students are enrolled in an educational program leading to a bachelor's or associate's degree that the eligible institution is licensed to award by the State in which the eligible institution is located.
The term “State” means each of the 50 States and the District of Columbia.
The Secretary is authorized to award grants, from allotments under subsection (e), to Predominantly Black Institutions to enable the Predominantly Black Institutions to carry out the authorized activities described in subsection (d).
In awarding grants under this section the Secretary shall give priority to Predominantly Black Institutions with large numbers or percentages of students described in subsections 1 (b)(1)(A) or (b)(1)(C). The level of priority given to Predominantly Black Institutions with large numbers or percentages of students described in subsection (b)(1)(A) shall be twice the level of priority given to Predominantly Black Institutions with large numbers or percentages of students described in subsection (b)(1)(C).
Grant funds provided under this section shall be used—
(A) to assist the Predominantly Black Institution to plan, develop, undertake, and implement programs to enhance the institution's capacity to serve more low- and middle-income Black American students;
(B) to expand higher education opportunities for students eligible to participate in programs under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 by encouraging college preparation and student persistence in secondary school and postsecondary education; and
(C) to strengthen the financial ability of the Predominantly Black Institution to serve the academic needs of the students described in subparagraphs (A) and (B).
Grant funds provided under this section shall be used for one or more of the following activities:
(A) The activities described in paragraphs (1) through (12) of section 1057(c) of this title.
(B) Academic instruction in disciplines in which Black Americans are underrepresented.
(C) Establishing or enhancing a program of teacher education designed to qualify students to teach in a public elementary school or secondary school in the State that shall include, as part of such program, preparation for teacher certification or licensure.
(D) 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.
(E) Other activities proposed in the application submitted pursuant to subsection (f) that—
(i) contribute to carrying out the purpose of this section; and
(ii) are approved by the Secretary as part of the review and approval of an application submitted under subsection (f).
A Predominantly Black Institution 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.
In order to be eligible to use grant funds in accordance with subparagraph (A), a Predominantly Black Institution shall provide matching funds from non-Federal sources, in an amount equal to or greater than the Federal funds used in accordance with subparagraph (A), for the establishment or increase of the endowment fund.
The provisions of part C, 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 subparagraph (A).
Not more than 50 percent of the grant funds provided to a Predominantly Black Institution under this section may be available for the purpose of constructing or maintaining a classroom, library, laboratory, or other instructional facility.
From the amounts appropriated to carry out this section for any fiscal year, the Secretary shall allot to each Predominantly Black Institution having an application approved under subsection (f) a sum that bears the same ratio to one-half of that amount as the number of Federal Pell Grant recipients in attendance at such institution at the end of the academic year preceding the beginning of that fiscal year, bears to the total number of Federal Pell Grant recipients at all such institutions at the end of such academic year.
From the amounts appropriated to carry out this section for any fiscal year, the Secretary shall allot to each Predominantly Black Institution having an application approved under subsection (f) a sum that bears the same ratio to one-fourth of that amount as the number of graduates for such academic year at such institution, bears to the total number of graduates for such academic year at all such institutions.
From the amounts appropriated to carry out this section for any fiscal year, the Secretary shall allot to each Predominantly Black Institution having an application approved under subsection (f) a sum that bears the same ratio to one-fourth of that amount as the percentage of graduates from such institution who are admitted to and in attendance at, not later than two years after graduation with an associate's degree or a baccalaureate degree, a baccalaureate degree-granting institution or a graduate or professional school in a degree program in disciplines in which Black American students are underrepresented, bears to the percentage of such graduates for all such institutions.
Notwithstanding paragraphs (1), (2), and (3), the amount allotted to each Predominantly Black Institution under this section may not be less than $250,000.
If the amounts appropriated to carry out this section for a fiscal year are not sufficient to pay the minimum allotment provided under subparagraph (A) for the fiscal year, then the amount of such minimum allotment shall be ratably reduced. If additional sums become available for such fiscal year, such reduced allotment shall be increased on the same basis as the allotment was reduced until the amount allotted equals the minimum allotment required under subparagraph (A).
The amount of a Predominantly Black Institution's allotment under paragraph (1), (2), (3), or (4) for any fiscal year that the Secretary determines will not be needed for such institution for the period for which such allotment is available, shall be available for reallotment to other Predominantly Black Institutions in proportion to the original allotments to such other institutions under this section for such fiscal year. The Secretary shall reallot such amounts from time to time, on such date and during such period as the Secretary determines appropriate.
Each Predominantly Black Institution desiring a grant under this section 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.
Section 1068b of this title shall not apply to applications under this section.
Any grant funds paid to a Predominantly Black Institution under this section that are not expended or used for the purposes for which the funds were paid within ten years following the date on which the grant was awarded, shall be repaid to the Treasury.
No Predominantly Black Institution that receives funds under this section shall concurrently receive funds under any other provision of this part, part B, or part A of subchapter V.
(Pub. L. 89–329, title III, §318, as added Pub. L. 110–315, title III, §305(a), Aug. 14, 2008, 122 Stat. 3169; amended Pub. L. 111–39, title III, §301(2), July 1, 2009, 123 Stat. 1937.)
The Act of March 2, 1867, referred to in subsec. (b)(1)(F)(iii), is act Mar. 2, 1867, ch. 162, 14 Stat. 438. Provisions relating to authorization of appropriations are contained in section 8 of the Act, which is classified to section 123 of this title. For complete classification of this Act to the Code, see Tables.
The Elementary and Secondary Education Act of 1965, referred to in subsec. (b)(2)(C)(i), is Pub. L. 89–10, Apr. 11, 1965, 79 Stat. 27. Part A of title I of the Act is classified generally to part A (§6311 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.
2009—Subsec. (b)(1)(F). Pub. L. 111–39 added subpar. (F) and struck out former subpar. (F) which read as follows: “is not receiving assistance under part B or part A of subchapter V.”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
1 So in original. Probably should be “subsection”.
The Secretary shall provide grants and related assistance to Native American-serving, nontribal institutions to enable such institutions to improve and expand their capacity to serve Native Americans and low-income individuals.
In this section:
The term “Native American” means an individual who is of a tribe, people, or culture that is indigenous to the United States.
The term “Native American-serving, nontribal institution” means an institution of higher education, as defined in section 1001(a) of this title, that, at the time of application—
(A) is an eligible institution under section 1058(b) of this title;
(B) has an enrollment of undergraduate students that is not less than 10 percent Native American students; and
(C) is not a Tribal College or University (as defined in section 1059c of this title).
Grants awarded under this section shall be used by Native American-serving, nontribal institutions to assist such institutions to plan, develop, undertake, and carry out activities to improve and expand such institutions’ capacity to serve Native Americans and low-income individuals.
Such programs may include—
(A) the 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 faculty in attaining advanced degrees in the faculty's field of instruction;
(D) curriculum development and academic instruction;
(E) the 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) the joint use of facilities such as laboratories and libraries;
(H) academic tutoring and counseling programs and student support services; and
(I) education or counseling services designed to improve the financial and economic literacy of students or the students’ families.
A Native American-serving, nontribal 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 a Native American-serving, nontribal institution, along with such other information and data as the Secretary may reasonably require.
Any institution that is determined by the Secretary to be a Native American-serving, nontribal institution may submit an application for assistance under this section to the Secretary.
The Secretary shall, to the extent possible, continue to prescribe a simplified and streamlined format for applications under this section that takes into account the limited number of institutions that are eligible for assistance under this section.
An application submitted under subparagraph (A) shall include—
(i) a five-year plan for improving the assistance provided by the Native American-serving, nontribal institution to Native Americans and low-income individuals; and
(ii) such other information and assurances as the Secretary may reasonably require.
No Native American-serving, nontribal institution that receives funds under this section shall concurrently receive funds under any other provision of this part, part B, or part A of subchapter V.
Section 1059(d) of this title shall not apply to institutions that are eligible to receive funds under this section.
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.
The minimum amount of a grant under this section shall be $200,000.
(Pub. L. 89–329, title III, §319, as added Pub. L. 110–315, title III, §306, Aug. 14, 2008, 122 Stat. 3173.)
The Secretary shall provide grants and related assistance to Asian American and Native American Pacific Islander-serving institutions to enable such institutions to improve and expand their capacity to serve Asian Americans and Native American Pacific Islanders and low-income individuals.
In this section:
The term “Asian American” has the meaning given the term “Asian” in the Office of Management and Budget's Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity as published on October 30, 1997 (62 Fed. Reg. 58789).
The term “Asian American and Native American Pacific Islander-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 not less than 10 percent students who are Asian American or Native American Pacific Islander.
The term “Native American Pacific Islander” means any descendant of the aboriginal people of any island in the Pacific Ocean that is a territory or possession of the United States.
Grants awarded under this section shall be used by Asian American and Native American Pacific Islander-serving institutions to assist such institutions to plan, develop, undertake, and carry out activities to improve and expand such institutions’ capacity to serve Asian Americans and Native American Pacific Islanders and low-income individuals.
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;
(H) academic tutoring and counseling programs and student support services;
(I) 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;
(J) establishing or improving an endowment fund;
(K) academic instruction in disciplines in which Asian Americans and Native American Pacific Islanders are underrepresented;
(L) conducting research and data collection for Asian American and Native American Pacific Islander populations and subpopulations;
(M) establishing partnerships with community-based organizations serving Asian Americans and Native American Pacific Islanders; and
(N) education or counseling services designed to improve the financial and economic literacy of students or the students’ families.
Each Asian American and Native American Pacific Islander-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 Asian American and Native American Pacific Islander-serving institution as defined in subsection (b), along with such other information and data as the Secretary may reasonably require.
Any institution that is determined by the Secretary to be an Asian American and Native American Pacific Islander-serving institution may submit an application for assistance under this section to the Secretary. Such application shall include—
(A) a five-year plan for improving the assistance provided by the Asian American and Native American Pacific Islander-serving institution to Asian American and Native American Pacific Islander students and low-income individuals; and
(B) such other information and assurances as the Secretary may reasonably require.
No Asian American and Native American Pacific Islander-serving institution that receives funds under this section shall concurrently receive funds under any other provision of this part, part B, or subchapter V.
Section 1059(d) of this title shall not apply to institutions that are eligible to receive funds under this section.
In awarding grants under this section, the Secretary shall—
(i) 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; and
(ii) give priority consideration to institutions for which not less than 10 percent of such institution's Asian American and Native American Pacific Islander students are low-income individuals.
(Pub. L. 89–329, title III, §320, as added Pub. L. 110–315, title III, §307, Aug. 14, 2008, 122 Stat. 3175.)
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 part C of subchapter I of chapter 34 of title 42 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.
(Pub. L. 89–329, title III, §321, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1294.)
The Morrill Act of 1862, referred to in par. (2), is act July 2, 1862, ch. 130, 12 Stat. 503, also known as the First Morrill Act, which is classified generally to subchapter I (§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.
A prior section 1060, Pub. L. 89–329, title III, §321, as added Pub. L. 96–374, title III, §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, §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, §139B(b), June 23, 1972, 86 Stat. 282.
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.
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, §13, Nov. 1, 1993, 58 F.R. 58735, formerly set out below.
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, §11, Feb. 12, 2002, 67 F.R. 6825, formerly set out below.
Ex. Ord. No. 13256, Feb. 12, 2002, 67 F.R. 6823, which established in the Office of the Secretary of Education the President's Board of Advisors on Historically Black Colleges and Universities, a Presidential advisory committee, was revoked by Ex. Ord. No. 13532, §4(g), Feb. 26, 2010, 75 F.R. 9752, set out below.
Ex. Ord. No. 13532, Feb. 26, 2010, 75 F.R. 9749, as amended by Ex. Ord. No. 13569, §4, Apr. 5, 2011, 76 F.R. 19891, 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, strengthen the capacity of historically black colleges and universities to provide the highest quality education, increase opportunities for these institutions to participate in and benefit from Federal programs, and ensure that our Nation has the highest proportion of college graduates in the world by the year 2020, it is hereby ordered as follows:
(a) Establishment. There is established the White House Initiative on Historically Black Colleges and Universities (Initiative), to be housed in the Department of Education (Department).
(b) Mission and Functions. The Initiative shall work with executive departments, agencies, and offices, the private sector, educational associations, philanthropic organizations, and other partners to increase the capacity of HBCUs to provide the highest-quality education to a greater number of students, and to take advantage of these institutions’ capabilities in serving the Nation's needs through five core tasks:
(i) strengthening the capacity of HBCUs to participate in Federal programs;
(ii) fostering enduring private-sector initiatives and public-private partnerships while promoting specific areas and centers of academic research and programmatic excellence throughout all HBCUs;
(iii) improving the availability, dissemination, and quality of information concerning HBCUs to inform public policy and practice;
(iv) sharing administrative and programmatic practices within the HBCU community for the benefit of all; and
(v) exploring new ways of improving the relationship between the Federal Government and HBCUs.
(c) Administration. There shall be an Executive Director of the Initiative. The Department shall provide the staff, resources, and assistance for the Initiative, and shall assist the Initiative in fulfilling its mission and responsibilities under this order.
(d) Federal Agency Plans. (1) Each executive department and agency designated by the Secretary of Education (Secretary) shall prepare an annual plan (agency plan) of its efforts to strengthen the capacity of HBCUs through increased participation in appropriate Federal programs and initiatives. Where appropriate, each agency plan shall address, among other things, the agency's proposed efforts to:
(i) establish how the department or agency intends to increase the capacity of HBCUs to compete effectively for grants, contracts, or cooperative agreements and to encourage HBCUs to participate in Federal programs;
(ii) identify Federal programs and initiatives in which HBCUs may be either underserved or underused as national resources, and improve HBCUs’ participation therein; and
(iii) encourage public-sector, private-sector, and community involvement in improving the overall capacity of HBCUs.
(2) Each department and agency, in its agency plan, shall provide appropriate measurable objectives and, after the first year, shall annually assess that department's or agency's performance on the goals set in the previous year's agency plan.
(3) The Secretary shall establish a date by which agency plans shall be submitted to the Secretary. The Secretary and the Executive Director shall review the agency plans in consultation with the President's Board of Advisors on HBCUs, established in section 3 of this order, and shall submit to the President an annual plan to strengthen the overall capacity of HBCUs.
(4) To help fulfill the objectives of these plans, the head of each department and agency identified by the Secretary shall provide, as appropriate, technical assistance and information to the Executive Director for purposes of communicating with HBCUs concerning program activities of the department or agency and the preparation of applications or proposals for grants, contracts, or cooperative agreements.
(5) To help fulfill the goals of this order, each executive department and agency identified by the Secretary shall appoint a senior official to report directly to the department or agency head with respect to that department's or agency's activities under this order, and to serve as liaison to the President's Board of Advisors on HBCUs and to the Initiative.
(e) Interagency Working Group. There is established the Interagency Working Group, which shall be convened by the Executive Director and that shall consist of representatives from agencies designated by the Secretary, to help advance and coordinate the work of Federal agencies pursuant to this order, where appropriate.
(a) Establishment. There is established in the Department the President's Board of Advisors on Historically Black Colleges and Universities (the Board). The Board shall consist of not more than 25 members appointed by the President. The President shall designate one member of the Board to serve as Chair, who shall coordinate with the Executive Director to convene meetings and help direct the work of the Board. The Board shall include representatives of a variety of sectors, including philanthropy, education, business, finance, entrepreneurship, innovation, and private foundations, as well as sitting HBCU presidents.
(b) Mission and Functions. Through the Initiative, the Board shall advise the President and the Secretary on all matters pertaining to strengthening the educational capacity of HBCUs. In particular, the Board shall advise the President and the Secretary in the following areas:
(i) improving the identity, visibility, and distinctive capabilities and overall competitiveness of HBCUs;
(ii) engaging the philanthropic, business, government, military, homeland-security, and education communities in a national dialogue regarding new HBCU programs and initiatives;
(iii) improving the ability of HBCUs to remain fiscally secure institutions that can assist the Nation in reaching its goal of having the highest proportion of college graduates by 2020;
(iv) elevating the public awareness of HBCUs; and
(v) encouraging public-private investments in HBCUs.
(c) Administration. The Executive Director of the Initiative shall also serve as the Executive Director of the Board. The Department shall provide funding and administrative support for the Board to the extent permitted by law and within existing appropriations. Members of the Board shall serve without compensation, but shall be reimbursed for travel expenses, including per diem in lieu of subsistence, as authorized by law. 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 of reporting to the Congress, shall be performed by the Secretary, in accordance with guidelines issued by the Administrator of General Services.
(d) Report. As part of the annual report of the Initiative, the Board shall report to the President and the Secretary on their progress in carrying out its duties under this section.
(b) This order shall apply to executive departments and agencies designated by the Secretary. Those departments and agencies shall provide timely reports and such information as is required to effectively carry out the objectives of this order.
(c) The heads of executive departments and agencies shall assist and provide information through the White House Initiative to the Board, consistent with applicable law, as may be necessary to carry out the functions of the Board. Each executive department and agency shall bear its own expenses of participating in the Initiative.
(d) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department, agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(e) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(f) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(g) Executive Order 13256 of February 12, 2002, is hereby revoked.
Barack Obama.
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, §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, 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, 2009, by Ex. Ord. No. 13446, Sept. 28, 2007, 72 F.R. 56175, 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, 2011, by Ex. Ord. No. 13511, Sept. 29, 2009, 74 F.R. 50909, 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, 2013, by Ex. Ord. No. 13591, Nov. 23, 2011, 76 F.R. 74623, set out as a note under section 14 of the Federal Advisory Committee Act in the Appendix to Title 5.
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.
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, in consultation with the Commissioner for Education Statistics 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.
(Pub. L. 89–329, title III, §322, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1294; amended Pub. L. 100–369, §10(c), July 18, 1988, 102 Stat. 838; Pub. L. 110–315, title III, §308, Aug. 14, 2008, 122 Stat. 3177.)
A prior section 1061, Pub. L. 89–329, title III, §322, as added Pub. L. 96–374, title III, §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, §401, Nov. 8, 1965, 79 Stat. 1232; Pub. L. 90–575, title I, §101(a), (b)(1), Oct. 16, 1968, 82 Stat. 1017; Pub. L. 91–95, §4, Oct. 22, 1969, 83 Stat. 143; Pub. L. 92–318, title I, §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, §131(b)(1), June 23, 1972, 86 Stat. 247.
2008—Par. (4). Pub. L. 110–315 inserted “, in consultation with the Commissioner for Education Statistics” before “and the Commissioner”.
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”.
From amounts available under section 1068h(a)(2) of this title for 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) Acquisition of real property in connection with the construction, renovation, or addition to or improvement of campus facilities.
(13) Education or financial information designed to improve the financial literacy and economic literacy of students or the students’ families, especially with regard to student indebtedness and student assistance programs under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42.
(14) Services necessary for the implementation of projects or activities that are described in the grant application and that are approved, in advance, by the Secretary, except that not more than two percent of the grant amount may be used for this purpose.
(15) 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.
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.
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.
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).
(1) No grant may be made under this chapter and part C of subchapter I of chapter 34 of title 42 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.
(Pub. L. 89–329, title III, §323, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1295; amended Pub. L. 100–50, §2(a)(7), June 3, 1987, 101 Stat. 335; Pub. L. 100–369, §10(b), July 18, 1988, 102 Stat. 838; Pub. L. 102–325, title III, §303(a), (b), July 23, 1992, 106 Stat. 474, 475; Pub. L. 103–208, §2(a)(8), Dec. 20, 1993, 107 Stat. 2457; Pub. L. 105–244, title III, §304(a), Oct. 7, 1998, 112 Stat. 1642; Pub. L. 110–315, title III, §309, Aug. 14, 2008, 122 Stat. 3177; Pub. L. 111–39, title III, §301(3), July 1, 2009, 123 Stat. 1937.)
A prior section 1062, Pub. L. 89–329, title III, §323, as added Pub. L. 96–374, title III, §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, §402, Nov. 8, 1965, 79 Stat. 1232; Pub. L. 90–575, title I, §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, §131(b)(1), June 23, 1972, 86 Stat. 247.
2009—Subsec. (a). Pub. L. 111–39 substituted “for any fiscal year,” for “in any fiscal year” in introductory provisions.
2008—Subsec. (a). Pub. L. 110–315, §309(1), substituted “section 1068h(a)(2)” for “section 1069f(a)(2)” in introductory provisions.
Subsec. (a)(12) to (15). Pub. L. 110–315, §309(2), (3), added pars. (12) to (14) and redesignated former par. (12) as (15).
1998—Subsecs. (b), (c). Pub. L. 105–244, §304(a)(1), (2), added subsec. (b) and redesignated former subsec. (b) as (c).
Subsec. (c)(3). Pub. L. 105–244, §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, §303(a)(1), inserted “, including purchase or rental of telecommunications technology equipment or services” after “facilities”.
Subsec. (a)(5). Pub. L. 102–325, §303(a)(2), inserted “, including telecommunications program materials” after “materials”.
Subsec. (a)(9) to (12). Pub. L. 102–325, §303(a)(3), added pars. (9) to (12).
Subsec. (b)(3). Pub. L. 102–325, §303(b), added par. (3).
1988—Subsec. (a)(3). Pub. L. 100–369, §10(b)(1), inserted “, and faculty development” after “exchanges”.
Subsec. (a)(7), (8). Pub. L. 100–369, §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”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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. 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. 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 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.
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.
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.
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.
(1) Notwithstanding subsections (a) through (c), and subject to subsection (h), if the amount of an award under this section for a part B institution, based on the data provided by the part B institution and the formula under subsections (a) through (c), would be—
(A) an amount that is greater than $250,000 but less than $500,000, the Secretary shall award the part B institution an allotment in the amount of $500,000; and
(B) an amount that is equal to or less than $250,000, the Secretary shall award the part B institution an allotment in the amount of $250,000.
(2) If the amount appropriated pursuant to section 1068h(a)(2)(A) of this title for any fiscal year is not sufficient to pay the minimum allotment required by paragraph (1) 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 allocations shall be increased on the same basis as the basis on which they were reduced (until the amount allotted equals the minimum allotment required by paragraph (1)).
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.
(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.
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 the Act of March 2, 1867 (14 Stat. 438; 20 U.S.C. 123), 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.
Notwithstanding any other provision of this section, a part B institution that would otherwise be eligible for funds under this part shall not receive an allotment under this part for a fiscal year, including the minimum allotment under subsection (d), if the part B institution, in the academic year preceding such fiscal year—
(A) did not have any enrolled students who were Pell Grant recipients;
(B) did not graduate any students; or
(C) where appropriate, did not have any students who, within 5 years of graduation from the part B institution, were admitted to and in attendance at a graduate or professional school in a degree program in disciplines in which Blacks are underrepresented.
Notwithstanding any other provision of this section, a part B institution shall not receive an allotment under this part for a fiscal year, including the minimum allotment under subsection (d), unless the institution provides the Secretary with the data required by the Secretary and for purposes of the formula described in subsections (a) through (c), including—
(A) the number of Pell Grant recipients enrolled in the part B institution in the academic year preceding such fiscal year;
(B) the number of students who earned an associate or baccalaureate degree from the part B institution in the academic year preceding such fiscal year; and
(C) where appropriate, the percentage of students who, within 5 years of graduation from the part B institution, were admitted to and in attendance at a graduate or professional school in a degree program in disciplines in which Blacks are underrepresented in the academic year preceding such fiscal year.
(Pub. L. 89–329, title III, §324, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1296; amended Pub. L. 99–509, title VII, §7007, Oct. 21, 1986, 100 Stat. 1950; Pub. L. 102–325, title III, §303(c), (d), July 23, 1992, 106 Stat. 475; Pub. L. 105–33, title XI, §11717(b), Aug. 5, 1997, 111 Stat. 786; Pub. L. 110–315, title III, §310, Aug. 14, 2008, 122 Stat. 3177; Pub. L. 111–39, title III, §301(4), July 1, 2009, 123 Stat. 1937.)
The Act of March 2, 1867, referred to in subsec. (g), is act Mar. 2, 1867, ch. 162, 14 Stat. 438. Provisions relating to authorization of appropriations are contained in section 8 of the Act, which is classified to section 123 of this title. For complete classification of this Act to the Code, see Tables.
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.
A prior section 1063, Pub. L. 89–329, title III, §324, as added Pub. L. 96–374, title III, §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, §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, §131(b)(1), June 23, 1972, 86 Stat. 247.
2009—Subsec. (d). Pub. L. 111–39 designated existing provisions as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), and added par. (2).
2008—Subsec. (d). Pub. L. 110–315, §310(a), amended subsec. (d) generally. Prior to amendment, text read as follows:
“(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) 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)).”
Subsec. (h). Pub. L. 110–315, §310(b), added subsec. (h).
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, §303(c), inserted “, within 5 years of graduation with a baccalaureate degree,” after “in attendance at”.
Subsec. (d)(1). Pub. L. 102–325, §303(d), substituted “$500,000” for “$350,000”.
1986—Subsec. (c). Pub. L. 99–509, §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, §7007(1), (2), added subsec. (d). Former subsec. (d) redesignated (e).
Subsec. (e). Pub. L. 99–509, §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, §7007(1), redesignated subsecs. (e) and (f) as (f) and (g), respectively.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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.
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.
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 and part C of subchapter I of chapter 34 of title 42 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.
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.
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.
(Pub. L. 89–329, title III, §325, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1296; amended Pub. L. 100–50, §2(a)(8), June 3, 1987, 101 Stat. 335; Pub. L. 102–325, title III, §303(e), July 23, 1992, 106 Stat. 475.)
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, §302(a)(1)(B), (C), July 23, 1992, 106 Stat. 472.
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”.
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.
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.
1 See References in Text note below.
(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.
Grants shall be made for a period not to exceed 5 years. Any funds awarded for such five-year grant period that are obligated during such five-year period may be expended during the 10-year period beginning on the first day of such five-year period.
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) establishing or improving a development office to strengthen and increase contributions from alumni and the private sector;
(6) assisting in the establishment or maintenance of an institutional endowment to facilitate financial independence pursuant to section 1065 of this title;
(7) funds and administrative management, and the acquisition of equipment, including software, for use in strengthening funds management and management information systems;
(8) acquisition of real property that is adjacent to the campus in connection with the construction, renovation, or addition to or improvement of campus facilities;
(9) education or financial information designed to improve the financial literacy and economic literacy of students or the students’ families, especially with regard to student indebtedness and student assistance programs under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42;
(10) services necessary for the implementation of projects or activities that are described in the grant application and that are approved, in advance, by the Secretary, except that not more than two percent of the grant amount may be used for this purpose;
(11) tutoring, counseling, and student service programs designed to improve academic success; and
(12) other activities proposed in the application submitted under subsection (d) 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.
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.
Independent professional or graduate institutions and programs eligible for grants under subsection (a) of this section are the following:
(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;
(R) Tennessee State University qualified graduate programs;
(S) Alabama State University qualified graduate programs;
(T) Prairie View A&M University qualified graduate programs;
(U) Delaware State University qualified graduate programs;
(V) Langston University qualified graduate programs;
(W) Bowie State University qualified graduate programs; and
(X) University of the District of Columbia David A. Clarke School of Law.
(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 law or in the physical or natural sciences, engineering, mathematics, psychometrics, 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.
Institutions that were awarded grants under this section prior to October 1, 2008, shall continue to receive such grants, subject to the availability of appropriated funds, regardless of the eligibility of the institutions described in subparagraphs (S) through (X) of paragraph (1).
The Secretary shall not award more than 1 grant under this section in any fiscal year to any institution of higher education.
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.
Subject to subsection (g) of this section, of the amount appropriated to carry out this section for any fiscal year—
(1) the first $56,900,000 (or any lesser amount appropriated) shall be available only for the purposes of making grants to institutions or programs described in subparagraphs (A) through (R) of subsection (e)(1) of this section;
(2) any amount in excess of $56,900,000, but not in excess of $62,900,000, shall be available for the purpose of making grants to institutions or programs described in subparagraphs (S) through (X) of subsection (e)(1) of this section; and
(3) any amount in excess of $62,900,000, shall be made available to each of the institutions or programs identified in subparagraphs (A) through (X) 1 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.
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 2008 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 2008, 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.
No institution that is eligible for and receives an award under section 1102a, 1136a, or 1136b of this title for a fiscal year shall be eligible to apply for a grant, or receive grant funds, under this section for the same fiscal year.
(Pub. L. 89–329, title III, §326, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1297; amended Pub. L. 100–50, §2(a)(9), (10), June 3, 1987, 101 Stat. 335; Pub. L. 102–325, title III, §303(f)(1), (g), July 23, 1992, 106 Stat. 475, 476; Pub. L. 103–208, §2(a)(9), Dec. 20, 1993, 107 Stat. 2457; Pub. L. 104–141, §2, May 6, 1996, 110 Stat. 1328; Pub. L. 105–244, title III, §304(b), Oct. 7, 1998, 112 Stat. 1643; Pub. L. 110–315, title III, §311, Aug. 14, 2008, 122 Stat. 3178.)
2008—Subsec. (b). Pub. L. 110–315, §311(a), inserted at end “Any funds awarded for such five-year grant period that are obligated during such five-year period may be expended during the 10-year period beginning on the first day of such five-year period.”
Subsec. (c)(5). Pub. L. 110–315, §311(b)(1), substituted “establishing or improving” for “establish or improve”.
Subsec. (c)(6). Pub. L. 110–315, §311(b)(2), substituted “assisting” for “assist” and struck out “and” after semicolon.
Subsec. (c)(8) to (12). Pub. L. 110–315, §311(b)(3), (4), added pars. (8) to (12).
Subsec. (e)(1). Pub. L. 110–315, §311(c)(1)(A), inserted a colon after “the following” in introductory provisions.
Subsec. (e)(1)(S) to (X). Pub. L. 110–315, §311(c)(1)(B)–(D), added subpars. (S) to (X).
Subsec. (e)(2)(A). Pub. L. 110–315, §311(c)(3), inserted “in law or” after “instruction” and substituted “mathematics, psychometrics, or” for “mathematics, or”.
Subsec. (e)(3). Pub. L. 110–315, §311(c)(2), substituted “2008” for “1998” and “subparagraphs (S) through (X)” for “subparagraphs (Q) and (R)”.
Subsec. (e)(4). Pub. L. 110–315, §311(c)(4), struck out “or university system” after “higher education”.
Subsec. (f)(1). Pub. L. 110–315, §311(d)(1), substituted “$56,900,000” for “$26,600,000” and “through (R)” for “through (P)”.
Subsec. (f)(2). Pub. L. 110–315, §311(d)(2), substituted “$56,900,000, but not in excess of $62,900,000” for “$26,600,000, but not in excess of $28,600,000” and “subparagraphs (S) through (X)” for “subparagraphs (Q) and (R)”.
Subsec. (f)(3). Pub. L. 110–315, §311(d)(3), in introductory provisions, substituted “$62,900,000” for “$28,600,000” and “through (X)” for “through (R)”.
Subsec. (g). Pub. L. 110–315, §311(e), substituted “2008” for “1998” in two places.
Subsec. (h). Pub. L. 110–315, §311(f), added subsec. (h).
1998—Subsec. (a)(1). Pub. L. 105–244, §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, §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, §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, §304(b)(1)(B), substituted “$1,000,000” for “$500,000”.
Subsec. (e)(1). Pub. L. 105–244, §304(b)(3)(A)(i), substituted “are the following” for “include—” in introductory provisions.
Subsec. (e)(1)(E) to (J). Pub. L. 105–244, §304(b)(3)(A)(ii), inserted “and other qualified graduate programs” before semicolon at end.
Subsec. (e)(1)(P). Pub. L. 105–244, §304(b)(3)(A)(iv)(I), inserted “University” after “State”.
Subsec. (e)(1)(Q), (R). Pub. L. 105–244, §304(b)(3)(A)(iii), (iv)(II), (III), added subpars. (Q) and (R).
Subsec. (e)(2). Pub. L. 105–244, §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, §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, §304(b)(3)(C), added par. (5).
Subsec. (f). Pub. L. 105–244, §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, §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, §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, §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, §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, §303(g), added subsec. (f).
1987—Subsec. (a)(2). Pub. L. 100–50, §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, §2(a)(10), made technical amendment to reference to section 1065 of this title to correct reference to corresponding section of original act.
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. 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. 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 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.
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.”
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.
Any funds paid to an institution and not expended or used for the purposes for which the funds were paid during the five-year period following the date of the initial grant award, may be carried over and expended during the succeeding five-year period, if such funds were obligated for a purpose for which the funds were paid during the five-year period following the date of the initial grant award.
(Pub. L. 89–329, title III, §327, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1298; amended Pub. L. 100–50, §2(a)(11), June 3, 1987, 101 Stat. 335; Pub. L. 110–315, title III, §312, Aug. 14, 2008, 122 Stat. 3180.)
2008—Subsec. (b). Pub. L. 110–315 amended subsec. (b) generally. Prior to amendment, text read as follows: “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.”
1987—Subsec. (a). Pub. L. 100–50 substituted “part” for “chapter” in introductory text.
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.
Section, Pub. L. 89–329, title III, §331, as added Pub. L. 99–498, title III, §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, §331, as added Pub. L. 96–374, title III, §301, Oct. 3, 1980, 94 Stat. 1395; amended Pub. L. 97–35, title V, §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, §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, §131(b)(1), June 23, 1972, 86 Stat. 247.
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.
(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.
(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 $1,000,000; and
(ii) has deposited in the eligible institution's endowment fund established under this section an amount which is equal to ½ 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 $100,000 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.
(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.
(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.
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.
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.
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.
(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.
The Secretary, directly or by grant or contract, may provide technical assistance to eligible institutions to prepare the institutions to qualify, apply for, and maintain a grant, under this section.
(Pub. L. 89–329, title III, §331, formerly §332, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1299; amended Pub. L. 100–50, §2(a)(12), June 3, 1987, 101 Stat. 336; renumbered §331 and amended Pub. L. 102–325, title III, §304(a)(3), (b), July 23, 1992, 106 Stat. 476; Pub. L. 103–208, §2(a)(8), (10), (11), Dec. 20, 1993, 107 Stat. 2457, 2458; Pub. L. 105–244, title III, §305, Oct. 7, 1998, 112 Stat. 1646; Pub. L. 110–315, title III, §313, Aug. 14, 2008, 122 Stat. 3180.)
A prior section 331 of Pub. L. 89–329, title III, as added Pub. L. 99–498, title III, §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, §304(a)(2).
A prior section 1065, Pub. L. 89–329, title III, §332, as added Pub. L. 96–374, title III, §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, §405, Nov. 8, 1965, 79 Stat. 1234; Pub. L. 90–575, title I, §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, §131(b)(1), June 23, 1972, 86 Stat. 247.
A prior section 1065a, Pub. L. 89–329, title III, §333, as added Pub. L. 98–95, §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.
2008—Subsec. (b)(2)(B)(i). Pub. L. 110–315, §313(a)(1), substituted “$1,000,000” for “$500,000”.
Subsec. (b)(5). Pub. L. 110–315, §313(a)(2), substituted “$100,000” for “$50,000”.
Subsec. (i). Pub. L. 110–315, §313(b), added subsec. (i).
1998—Subsec. (b)(1). Pub. L. 105–244, §305(1), substituted “section 1068h” for “section 1069f”.
Subsec. (b)(2)(B), (C). Pub. L. 105–244, §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, §304(b)(1)(A), struck out “of higher education” after “eligible institutions”.
Subsec. (a)(2)(D). Pub. L. 102–325, §304(b)(1)(B), added subpar. (D).
Subsec. (b)(1). Pub. L. 102–325, §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, §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, §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, §304(b)(5), substituted “an endowment challenge grant” for “a challenge grant”.
Subsec. (b)(5). Pub. L. 102–325, §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, §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, §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)”.
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. 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. 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 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.
Pub. L. 105–244, title III, §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.
A prior part D, consisting of sections 1066 to 1069, 1069b to 1069d, and 1069f, was redesignated part F (§1068 et seq.) of this subchapter by Pub. L. 105–244, title III, §301(a)(1), Oct. 7, 1998, 112 Stat. 1636.
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.
(Pub. L. 89–329, title III, §341, formerly title VII, §721, as added Pub. L. 102–325, title VII, §704, July 23, 1992, 106 Stat. 741; renumbered title III, §341, Pub. L. 105–244, title III, §301(a)(3), (4), Oct. 7, 1998, 112 Stat. 1636.)
Section was formerly classified to section 1132c of this title prior to renumbering by Pub. L. 105–244.
A prior section 1066, Pub. L. 89–329, title III, §351, as added Pub. L. 99–498, title III, §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, §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, §341, as added Pub. L. 96–374, title III, §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, §406, Nov. 8, 1965, 79 Stat. 1234; Pub. L. 90–575, title I, §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, §131(b)(1), June 23, 1972, 86 Stat. 247.
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.
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, 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 an accrediting agency or association recognized by the Secretary under subpart 2 of part G of subchapter IV; 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 capital project 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.
(Pub. L. 89–329, title III, §342, formerly title VII, §722, as added Pub. L. 102–325, title VII, §704, July 23, 1992, 106 Stat. 742; renumbered title III, §342, and amended Pub. L. 105–244, title III, §§301(a)(3), (4), (c)(4), 306(a), Oct. 7, 1998, 112 Stat. 1636, 1637, 1646; Pub. L. 110–315, title III, §§314(a), 320(1), Aug. 14, 2008, 122 Stat. 3180, 3187.)
Section was formerly classified to section 1132c–1 of this title prior to renumbering by Pub. L. 105–244.
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.
2008—Par. (5). Pub. L. 110–315, §320(1)(A), inserted a comma after “1066c(b) of this title” in introductory provisions.
Par. (5)(C). Pub. L. 110–315, §320(1)(B), substituted “equipment, technology,” for “equipment technology,,”.
Par. (5)(G). Pub. L. 110–315, §314(a)(1), substituted “by an accrediting agency or association recognized by the Secretary under subpart 2 of part G of subchapter IV” for “by a nationally recognized accrediting agency or association”.
Par. (8). Pub. L. 110–315, §314(a)(2), inserted “capital project” after “issuing taxable”.
1998—Par. (3). Pub. L. 105–244, §301(c)(4)(A), substituted “section 1066b(b)” for “section 1132c–2(b)”.
Par. (4). Pub. L. 105–244, §301(c)(4)(B), substituted “section 1066b” for “section 1132c–2”.
Par. (5). Pub. L. 105–244, §301(c)(4)(C), substituted “section 1066c(b)” for “section 1132c–3(b)” in introductory provisions.
Par. (5)(B). Pub. L. 105–244, §306(a)(2), added subpar. (B). Former subpar. (B) redesignated (C).
Par. (5)(C). Pub. L. 105–244, §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, §306(a)(4), added subpars. (D) to (F). Former subpar. (D) redesignated (H).
Par. (5)(G). Pub. L. 105–244, §306(a)(1), redesignated subpar. (C) as (G).
Par. (5)(H). Pub. L. 105–244, §306(a)(1), (5), redesignated subpar. (D) as (H) and substituted “(G)” for “(C)”.
Par. (8). Pub. L. 105–244, §301(c)(4)(D), substituted “section 1066d(1)” for “section 1132c–4(1)”.
Par. (9). Pub. L. 105–244, §301(c)(4)(E), substituted “section 1066f” for “section 1132c–6”.
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.
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.
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 within 120 days 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;
(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; and
(12) limit loan collateralization, with respect to any loan made under this part, to 100 percent of the loan amount, except as otherwise required by the Secretary.
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).
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.
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.
(Pub. L. 89–329, title III, §343, formerly title VII, §723, as added Pub. L. 102–325, title VII, §704, July 23, 1992, 106 Stat. 743; amended Pub. L. 103–382, title III, §360C, Oct. 20, 1994, 108 Stat. 3972; renumbered title III, §343, and amended Pub. L. 105–244, title III, §§301(a)(3), (4), (c)(5), 306(b), Oct. 7, 1998, 112 Stat. 1636, 1637, 1646; Pub. L. 110–315, title III, §§314(b), 320(2), Aug. 14, 2008, 122 Stat. 3181, 3187.)
Section 1066e of this title, referred to in subsec. (b), was repealed by Pub. L. 105–244, title III, §306(d), Oct. 7, 1998, 112 Stat. 1647.
Section was formerly classified to section 1132c–2 of this title prior to renumbering by Pub. L. 105–244.
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.
2008—Subsec. (b)(8)(B)(ii). Pub. L. 110–315, §314(b)(1)(B), inserted “within 120 days” after “loan proceeds”.
Pub. L. 110–315, §314(b)(1)(A), which directed the substitution of “5” for “10”, could not be executed because “10” did not appear subsequent to amendment by Pub. L. 105–244, §306(b)(1). See 1998 Amendment note below.
Subsec. (b)(12). Pub. L. 110–315, §314(b)(2)–(4), added par. (12).
Subsec. (e). Pub. L. 110–315, §320(2), inserted heading.
1998—Subsec. (a). Pub. L. 105–244, §301(c)(5)(A), substituted “section 1066c” for “section 1132c–3”.
Subsec. (b). Pub. L. 105–244, §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, §306(b)(1), substituted “5 percent” for “10 percent” wherever appearing.
Subsec. (b)(10). Pub. L. 105–244, §301(c)(5)(B)(ii), substituted “section 1066c” for “section 1132c–3”.
Subsec. (d). Pub. L. 105–244, §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, §306(b)(2), added subsec. (e).
1994—Subsec. (b)(8)(A). Pub. L. 103–382, §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, §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, §360C(2), substituted “conditions” for “regulations”.
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.
1 See References in Text note below.
At no time shall the aggregate principal amount of outstanding bonds insured under this part together with any accrued unpaid interest thereon exceed $1,100,000,000, of which—
(1) not more than $733,333,333 shall be used for loans to eligible institutions that are private historically Black colleges and universities; and
(2) not more than $366,666,667 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.
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.
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.
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.
(Pub. L. 89–329, title III, §344, formerly title VII, §724, as added Pub. L. 102–325, title VII, §704, July 23, 1992, 106 Stat. 745; renumbered title III, §344, Pub. L. 105–244, title III, §301(a)(3), (4), Oct. 7, 1998, 112 Stat. 1636; Pub. L. 110–315, title III, §314(c), Aug. 14, 2008, 122 Stat. 3181.)
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 (§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.
Section was formerly classified to section 1132c–3 of this title prior to renumbering by Pub. L. 105–244.
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.
2008—Subsec. (a). Pub. L. 110–315, §314(c)(1), substituted “$1,100,000,000” for “$375,000,000” in introductory provisions.
Subsec. (a)(1). Pub. L. 110–315, §314(c)(2), substituted “$733,333,333” for “$250,000,000”.
Subsec. (a)(2). Pub. L. 110–315, §314(c)(3), substituted “$366,666,667” for “$125,000,000”.
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 August 14, 2008, 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 ensure that—
(A) the selection process for the designated bonding authority is conducted on a competitive basis; and
(B) the evaluation and selection process is transparent;
(3) shall—
(A) review the performance of the designated bonding authority after the third year of the insurance agreement; and
(B) following the review described in subparagraph (A), implement a revised competitive selection process, if determined necessary by the Secretary in consultation with the Advisory Board established pursuant to section 1066f of this title;
(4) shall require that the first loans for capital projects authorized under section 1066b of this title be made no later than March 31, 1994;
(5) 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;
(6)(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;
(7) may sell, exchange, or lease real or personal property and securities or obligations;
(8) may include in any contract such other covenants, conditions, or provisions necessary to ensure that the purposes of this part will be achieved;
(9) 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; and
(10) not later than 120 days after August 14, 2008, shall submit to the authorizing committees a report on the progress of the Department in implementing the recommendations made by the Government Accountability Office in October 2006 for improving the Historically Black College and Universities Capital Financing Program.
(Pub. L. 89–329, title III, §345, formerly title VII, §725, as added Pub. L. 102–325, title VII, §704, July 23, 1992, 106 Stat. 745; amended Pub. L. 103–208, §2(j)(16), Dec. 20, 1993, 107 Stat. 2481; renumbered title III, §345, and amended Pub. L. 105–244, title III, §§301(a)(3), (4), (c)(6), 306(c), Oct. 7, 1998, 112 Stat. 1636, 1637, 1647; Pub. L. 110–315, title III, §314(d), Aug. 14, 2008, 122 Stat. 3181.)
Section was formerly classified to section 1132c–4 of this title prior to renumbering by Pub. L. 105–244.
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.
2008—Par. (1). Pub. L. 110–315, §314(d)(1), substituted “August 14, 2008,” for “July 23, 1992,” in introductory provisions.
Pars. (2) to (9). Pub. L. 110–315, §314(d)(2), (3), added pars. (2) and (3) and redesignated former pars. (2) to (7) as (4) to (9), respectively.
Par. (10). Pub. L. 110–315, §314(d)(4)–(6), added par. (10).
1998—Par. (2). Pub. L. 105–244, §301(c)(6), substituted “section 1066b” for “section 1132c–2”.
Par. (7). Pub. L. 105–244, §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.
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. 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, Pub. L. 89–329, title III, §346, formerly title VII, §726, as added Pub. L. 102–325, title VII, §704, July 23, 1992, 106 Stat. 746; amended Pub. L. 103–208, §2(j)(17), Dec. 20, 1993, 107 Stat. 2481; renumbered title III, §346, Pub. L. 105–244, title III, §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.
Section was formerly classified to section 1132c–5 of this title prior to renumbering by Pub. L. 105–244.
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.
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.
The Advisory Board shall be appointed by the Secretary and shall be composed of 11 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) Three 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.
(G) The president of the Thurgood Marshall College Fund, or the designee of the president.
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.
In addition to the responsibilities of the Advisory Board described in subsection (a), the Advisory Board shall advise the Secretary and the authorizing committees regarding—
(A) the fiscal status and strategic financial condition of not less than ten historically Black colleges and universities that have—
(i) obtained construction financing through the program under this part and seek additional financing or refinancing under such program; or
(ii) applied for construction financing through the program under this part but have not received financing under such program; and
(B) the feasibility of reducing borrowing costs associated with the program under this part, including reducing interest rates.
Not later than six months after August 14, 2008, the Advisory Board shall prepare and submit a report to the authorizing committees regarding the historically Black colleges and universities described in paragraph (1)(A) that includes administrative and legislative recommendations for addressing the issues related to construction financing facing such historically Black colleges and universities.
(Pub. L. 89–329, title III, §347, formerly title VII, §727, as added Pub. L. 102–325, title VII, §704, July 23, 1992, 106 Stat. 746; renumbered title III, §347, and amended Pub. L. 105–244, title III, §§301(a)(3), (4), 306(e), Oct. 7, 1998, 112 Stat. 1636, 1647; Pub. L. 110–315, title III, §314(e), Aug. 14, 2008, 122 Stat. 3182.)
Section was formerly classified to section 1132c–6 of this title prior to renumbering by Pub. L. 105–244.
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.
2008—Subsec. (b)(1). Pub. L. 110–315, §314(e)(1)(A), substituted “11 members” for “9 members” in introductory provisions.
Subsec. (b)(1)(C). Pub. L. 110–315, §314(e)(1)(B), substituted “Three members” for “Two members”.
Subsec. (b)(1)(G). Pub. L. 110–315, §314(e)(1)(C), added subpar. (G).
Subsec. (c). Pub. L. 110–315, §314(e)(2), added subsec. (c).
1998—Subsec. (b)(1)(D). Pub. L. 105–244, §306(e)(1)(A), inserted “, or the president's designee.” after “Fund, Inc.”
Subsec. (b)(1)(E). Pub. L. 105–244, §306(e)(1)(B), inserted “, or the designee of the Association” before the period.
Subsec. (c). Pub. L. 105–244, §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.”
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.
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.
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.
(Pub. L. 89–329, title III, §348, formerly title VII, §728, as added Pub. L. 102–325, title VII, §704, July 23, 1992, 106 Stat. 747; renumbered title III, §348, and amended Pub. L. 105–244, title III, §301(a)(3), (4), (c)(7), Oct. 7, 1998, 112 Stat. 1636, 1637.)
Section was formerly classified to section 1132c–7 of this title prior to renumbering by Pub. L. 105–244.
1998—Pub. L. 105–244, §301(c)(7), substituted “section 1066d(1)” for “section 1132c–4(1)”.
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.
Pub. L. 105–244, title III, §§301(a)(5), 307(d), Oct. 7, 1998, 112 Stat. 1636, 1648, redesignated subpart 1 (§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 “
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.
(Pub. L. 89–329, title III, §350, as added Pub. L. 105–244, title III, §307(a), Oct. 7, 1998, 112 Stat. 1647.)
A prior section 1067, Pub. L. 89–329, title III, §352, as added Pub. L. 99–498, title III, §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, §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, §342, as added Pub. L. 96–374, title III, §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, §407, Nov. 8, 1965, 79 Stat. 1234; Pub. L. 90–575, title I, §§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, §131(b)(1), June 23, 1972, 86 Stat. 247.
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.
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) of this title.
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.
(Pub. L. 89–329, title III, §351, formerly title X, §1021, as added Pub. L. 99–498, title X, §1002, Oct. 17, 1986, 100 Stat. 1561; amended Pub. L. 102–325, title X, §1002(a), July 23, 1992, 106 Stat. 780; renumbered title III, §351, Pub. L. 105–244, title III, §301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636; Pub. L. 111–39, title III, §301(5), July 1, 2009, 123 Stat. 1937.)
Section was formerly classified to section 1135b of this title prior to renumbering by Pub. L. 105–244.
A prior section 351 of Pub. L. 89–329 was renumbered section 391 and is classified to section 1068 of this title.
2009—Subsec. (a). Pub. L. 111–39 made technical amendment to reference in original act which appears in text as reference to section 3444(a)(1) of this title.
1992—Subsec. (b). Pub. L. 102–325 inserted “, particularly minority women,” after “ethnic minorities”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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.
Grants under this subpart shall be awarded on the basis of criteria established by the Secretary by regulations.
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.
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.
(Pub. L. 89–329, title III, §352, formerly title X, §1022, as added Pub. L. 99–498, title X, §1002, Oct. 17, 1986, 100 Stat. 1561; renumbered title III, §352, Pub. L. 105–244, title III, §301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636.)
Section was formerly classified to section 1135b–1 of this title prior to renumbering by Pub. L. 105–244.
A prior section 352 of Pub. L. 89–329 was renumbered section 392 and is classified to section 1068a of this title.
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).
(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.
(Pub. L. 89–329, title III, §353, formerly title X, §1023, as added Pub. L. 99–498, title X, §1002, Oct. 17, 1986, 100 Stat. 1562; renumbered title III, §353, and amended Pub. L. 105–244, title III, §301(a)(5), (7), (c)(8), Oct. 7, 1998, 112 Stat. 1636, 1637.)
Section was formerly classified to section 1135b–2 of this title prior to renumbering by Pub. L. 105–244.
A prior section 353 of Pub. L. 89–329 was renumbered section 393 and is classified to section 1068b of this title.
1998—Subsec. (a)(1). Pub. L. 105–244, §301(c)(8)(A), substituted “section 1067k(6)” for “section 1135d–5(6)”.
Subsec. (a)(2). Pub. L. 105–244, §301(c)(8)(B), substituted “section 1067k(7)” for “section 1135d–5(7)”.
Subsec. (a)(3). Pub. L. 105–244, §301(c)(8)(C), substituted “section 1067k(8)” for “section 1135d–5(8)”.
Subsec. (a)(4). Pub. L. 105–244, §301(c)(8)(D), substituted “section 1067k(9)” for “section 1135d–5(9)”.
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.
Section, Pub. L. 89–329, title III, formerly title X, §1024, as added Pub. L. 99–498, title X, §1002, Oct. 17, 1986, 100 Stat. 1562; amended Pub. L. 102–325, title X, §1002(b), July 23, 1992, 106 Stat. 780; renumbered title III, Pub. L. 105–244, title III, §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 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.
Repeal effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as an Effective Date of 2009 Amendment note under section 1001 of this title.
A prior subpart 2, consisting of sections 1067g to 1067l, was redesignated subpart 3 of this part by Pub. L. 110–315, title III, §315(a)(1), Aug. 14, 2008, 122 Stat. 3182.
Subject to the availability of appropriations to carry out this subpart, the Secretary shall make grants to eligible partnerships (as described in subsection (f)) to support the engagement of underrepresented minority youth and youth who are low-income individuals (as such term is defined in section 1058 of this title) in science, technology, engineering, and mathematics through outreach and hands-on, experiential-based learning projects that encourage students in kindergarten through grade 12 who are underrepresented minority youth or low-income individuals to pursue careers in science, technology, engineering, and mathematics.
A grant awarded to a partnership under this subpart shall be for an amount that is not less than $500,000.
A grant awarded under this subpart shall be for a period of five years.
A partnership receiving a grant under this subpart shall provide, from non-Federal sources, in cash or in-kind, an amount equal to 50 percent of the costs of the project supported by such grant.
In awarding grants under this subpart, the Secretary shall ensure that, to the maximum extent practicable, the projects funded under this subpart are located in diverse geographic regions of the United States.
Notwithstanding the general eligibility provision in section 1067g of this title, eligibility to receive grants under this subpart is limited to partnerships described in paragraph (5) of such section.
(Pub. L. 89–329, title III, §355, as added Pub. L. 110–315, title III, §315(a)(2), Aug. 14, 2008, 122 Stat. 3182; amended Pub. L. 111–39, title III, §301(6), July 1, 2009, 123 Stat. 1937.)
A prior section 355 of Pub. L. 89–329 was classified to section 1069a of this title, prior to repeal by Pub. L. 102–325.
2009—Subsec. (a). Pub. L. 111–39 substituted “section 1058 of this title” for “section 302”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
The Secretary is authorized to enter into a contract with a firm with a demonstrated record of success in advertising to implement a campaign to expand the population of qualified individuals in science, technology, engineering, and mathematics fields (referred to in this section as “STEM fields”) by encouraging young Americans to enter such fields.
The campaign under this section shall be designed to enhance the image of education and professions in the STEM fields and promote participation in the STEM fields, and may include—
(1) monitoring trends in youths’ attitudes toward pursuing education and professions in the STEM fields and their propensity toward entering the STEM fields;
(2) determining what factors contribute to encouraging and discouraging Americans from pursuing study in STEM fields and entering the STEM fields professionally;
(3) determining what specific factors limit the participation of groups currently underrepresented in STEM fields, including Latinos, African-Americans, and women; and
(4) drawing from the market research performed under this section and implementing an advertising campaign to encourage young Americans to take up studies in STEM fields, beginning at an early age.
The campaign under this section shall—
(1) include components that focus tailored messages on appropriate age groups, starting with elementary school students; and
(2) link participation in the STEM fields to the concept of service to one's country, so that young people will be encouraged to enter the STEM fields in order fulfill the obligation to be of service to their country.
The campaign under this section shall hold as a high priority making specific appeals to Hispanic Americans, African Americans, Native Americans, students with disabilities, and women, who are currently underrepresented in the STEM fields, in order to increase their numbers in the STEM fields, and shall tailor recruitment efforts to each specific group.
The campaign under this section shall make use of a variety of media, with an emphasis on television advertising, to reach its intended audience.
The campaign under this section shall include a narrowly focused effort to attract current professionals in the STEM fields, through advertising in mediums likely to reach that specific group, into teaching in a STEM field in elementary schools and secondary schools.
(Pub. L. 89–329, title III, §356, as added Pub. L. 110–315, title III, §315(a)(2), Aug. 14, 2008, 122 Stat. 3183.)
A prior section 356 of Pub. L. 89–329 was renumbered section 395 and is classified to section 1068d of this title.
The Secretary shall develop an evaluation and accountability plan for projects funded under this subpart. Such plan shall include, if the Secretary determines that it is practical, an objective measure of the impact of such projects, such as a measure of whether underrepresented minority student enrollment in courses related to science, technology, engineering, and mathematics increases at the secondary and postsecondary levels.
(Pub. L. 89–329, title III, §357, as added Pub. L. 110–315, title III, §315(a)(2), Aug. 14, 2008, 122 Stat. 3184.)
A prior section 357 of Pub. L. 89–329 was renumbered section 396 and is classified to section 1068e of this title.
Pub. L. 110–315, title III, §315(a)(1), Aug. 14, 2008, 122 Stat. 3182, redesignated subpart 2 (§1067 et seq.) of this part as subpart 3 of this part.
Pub. L. 105–244, title III, §301(a)(5), Oct. 7, 1998, 112 Stat. 1636, redesignated subpart 3 (§1135d et seq.) of part B of subchapter X of this chapter as subpart 2 of this part.
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;
(4) consortia of organizations, that provide needed services to one or more minority institutions, the membership of which may include—
(A) public and private nonprofit 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, the Department of Defense, or the National Institutes of Health;
(D) relevant offices of the National Aeronautics and Space Administration, National Oceanic and Atmospheric Administration, National Science Foundation, and National Institute of Standards and Technology;
(E) quasi-governmental entities that have a significant scientific or engineering mission; or
(F) institutions of higher education that have State-sponsored centers for research in science, technology, engineering, and mathematics; or
(5) only with respect to grants under subpart 2, partnerships of organizations, the membership of which shall include—
(A) at least one institution of higher education eligible for assistance under this subchapter or subchapter V;
(B) at least one high-need local educational agency (as defined in section 1021 of this title); and
(C) at least two community organizations or entities, such as businesses, professional associations, community-based organizations, philanthropic organizations, or State agencies.
(Pub. L. 89–329, title III, §361, formerly title X, §1041, as added Pub. L. 99–498, title X, §1002, Oct. 17, 1986, 100 Stat. 1564; renumbered title III, §361, and amended Pub. L. 105–244, title III, §§301(a)(5), (7), (b), (c)(9), 307(b), Oct. 7, 1998, 112 Stat. 1636, 1637, 1648; Pub. L. 110–315, title III, §315(b), Aug. 14, 2008, 122 Stat. 3184.)
Section was formerly classified to section 1135d of this title prior to renumbering by Pub. L. 105–244.
2008—Par. (3)(B). Pub. L. 110–315, §315(b)(1), struck out “or” at end.
Par. (4)(A). Pub. L. 110–315, §315(b)(2)(A), substituted “public and private nonprofit institutions of higher education” for “institutions of higher education”.
Par. (4)(C). Pub. L. 110–315, §315(b)(2)(B), inserted “, the Department of Defense, or the National Institutes of Health” before the semicolon.
Par. (4)(D). Pub. L. 110–315, §315(b)(2)(C), added subpar. (D) and struck out former subpar. (D) which read as follows: “private organizations that have science or engineering facilities; or”.
Par. (4)(F). Pub. L. 110–315, §315(b)(2)(D), (E), added subpar. (F).
Par. (5). Pub. L. 110–315, §315(b)(3), added par. (5).
1998—Pub. L. 105–244, §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, §301(c)(9), substituted “section 1067k(3)” for “section 1135d–5(3)”.
Pub. L. 105–244, §301(b)(1), inserted “and” after the semicolon.
Par. (2). Pub. L. 105–244, §301(b)(2), substituted a period for “; and”.
Par. (3). Pub. L. 105–244, §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.”
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.
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.
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.
(Pub. L. 89–329, title III, §362, formerly title X, §1042, as added Pub. L. 99–498, title X, §1002, Oct. 17, 1986, 100 Stat. 1564; renumbered title III, §362, and amended Pub. L. 105–244, title III, §301(a)(5), (7), (c)(10), Oct. 7, 1998, 112 Stat. 1636, 1637.)
Section was formerly classified to section 1135d–1 of this title prior to renumbering by Pub. L. 105–244.
1998—Subsec. (a). Pub. L. 105–244, §301(c)(10), substituted “section 1067g” for “section 1135d” in introductory provisions and “section 1067a(b)” for “section 1135b(b)” in par. (1).
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.
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.
(Pub. L. 89–329, title III, §363, formerly title X, §1043, as added Pub. L. 99–498, title X, §1002, Oct. 17, 1986, 100 Stat. 1564; amended Pub. L. 102–325, title X, §1002(d), July 23, 1992, 106 Stat. 780; renumbered title III, §363, Pub. L. 105–244, title III, §301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636.)
Section was formerly classified to section 1135d–2 of this title prior to renumbering by Pub. L. 105–244.
1992—Pub. L. 102–325 inserted “and consult” after “cooperate”.
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.
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.
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.
(Pub. L. 89–329, title III, §364, formerly title X, §1044, as added Pub. L. 99–498, title X, §1002, Oct. 17, 1986, 100 Stat. 1564; renumbered title III, §364, Pub. L. 105–244, title III, §301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636.)
Section was formerly classified to section 1135d–3 of this title prior to renumbering by Pub. L. 105–244.
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 supports 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.
(Pub. L. 89–329, title III, §365, formerly title X, §1046, as added Pub. L. 99–498, title X, §1002, Oct. 17, 1986, 100 Stat. 1566; renumbered title III, §365, and amended Pub. L. 105–244, title III, §§301(a)(5), (7), 307(c), Oct. 7, 1998, 112 Stat. 1636, 1648; Pub. L. 110–315, title III, §320(3), Aug. 14, 2008, 122 Stat. 3187.)
Section was formerly classified to section 1135d–5 of this title prior to renumbering by Pub. L. 105–244.
2008—Par. (9)(A). Pub. L. 110–315 substituted “supports” for “support” in introductory provisions.
1998—Par. (4). Pub. L. 105–244, §307(c), inserted “behavioral,” after “physical,”.
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.
Section, Pub. L. 89–329, title III, §366, formerly title X, §1047, as added Pub. L. 99–498, title X, §1002, Oct. 17, 1986, 100 Stat. 1567; amended Pub. L. 100–418, title VI, §6221, Aug. 23, 1988, 102 Stat. 1518; Pub. L. 102–325, title X, §1002(f), July 23, 1992, 106 Stat. 780; renumbered title III, §366, Pub. L. 105–244, title III, §301(a)(5), (7), Oct. 7, 1998, 112 Stat. 1636, authorized appropriations to carry out Fund for Improvement of Postsecondary Education program.
Section was formerly classified to section 1135d–6 of this title prior to renumbering by Pub. L. 105–244.
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.
Part F of title III of Pub. L. 89–329, comprising this part, was originally added as part J of title IV of Pub. L. 89–329 by Pub. L. 110–84, title VIII, §802, Sept. 27, 2007, 121 Stat. 817, and was classified to part I (§1099e) of subchapter IV of this chapter. Part J of title IV of Pub. L. 89–329 was subsequently redesignated part F of title III of Pub. L. 89–329 by Pub. L. 110–315, title III, §316(a)(2), Aug. 14, 2008, 122 Stat. 3185, and transferred to this part.
A prior part F [§1068 et seq.] of this subchapter was redesignated part G by Pub. L. 110–315, title III, §316(a)(1), Aug. 14, 2008, 122 Stat. 3185.
An institution of higher education is eligible to receive funds from the amounts made available under this section if such institution is—
(1) a part B institution (as defined in section 1061 of this title);
(2) a Hispanic-serving institution (as defined in section 1101a of this title);
(3) a Tribal College or University (as defined in section 1059c of this title);
(4) an Alaska Native-serving institution or a Native Hawaiian-serving institution (as defined in section 1059d(b) of this title);
(5) a Predominantly Black Institution (as defined in subsection (c));
(6) an Asian American and Native American Pacific Islander-serving institution (as defined in subsection (c)); or
(7) a Native American-serving nontribal institution (as defined in subsection (c)).
There shall be available to the Secretary to carry out this section, from funds in the Treasury not otherwise appropriated, $255,000,000 for each of the fiscal years 2008 through 2019. The authority to award grants under this section shall expire at the end of fiscal year 2019.
Funds made available under subparagraph (A) for a fiscal year shall remain available for the next succeeding fiscal year.
Of the amounts made available under paragraph (1) for each fiscal year—
(i) $100,000,000 shall be available for allocation under subparagraph (B);
(ii) $100,000,000 shall be available for allocation under subparagraph (C); and
(iii) $55,000,000 shall be available for allocation under subparagraph (D).
The amount made available for allocation under this subparagraph by subparagraph (A)(i) for any fiscal year shall be available for Hispanic-serving Institutions 1 for activities described in section 1101b of this title, with a priority given to applications that propose—
(i) to increase the number of Hispanic and other low income students attaining degrees in the fields of science, technology, engineering, or mathematics; and
(ii) to develop model transfer and articulation agreements between 2-year Hispanic-serving institutions and 4-year institutions in such fields.
From the amount made available for allocation under this subparagraph by subparagraph (A)(ii) for any fiscal year—
(i) 85 percent shall be available to eligible institutions described in subsection (a)(1) and shall be made available as grants under section 1062 of this title and allotted among such institutions under section 1063 of this title, treating such amount, plus the amount appropriated for such fiscal year in a regular or supplemental appropriation Act to carry out part B of this subchapter, as the amount appropriated to carry out part B of this subchapter for purposes of allotments under section 1063 of this title, for use by such institutions with a priority for—
(I) activities described in paragraphs (1), (2), (4), (5), and (10) of section 1062(a) of this title; and
(II) other activities, consistent with the institution's comprehensive plan and designed to increase the institution's capacity to prepare students for careers in the physical or natural sciences, mathematics, computer science or information technology or sciences, engineering, language instruction in the less-commonly taught languages or international affairs, or nursing or allied health professions; and
(ii) 15 percent shall be available to eligible institutions described in subsection (a)(5) and shall be available for a competitive grant program to award 25 grants of $600,000 annually for programs in any of the following areas:
(I) science, technology, engineering, or mathematics (STEM);
(II) health education;
(III) internationalization or globalization;
(IV) teacher preparation; or
(V) improving educational outcomes of African American males.
From the amount made available for allocation under this subparagraph by subparagraph (A)(iii) for any fiscal year—
(i) $30,000,000 for such fiscal year shall be available to eligible institutions described in subsection (a)(3) and shall be made available as grants under section 1059c of this title, treating such $30,000,000 as part of the amount appropriated for such fiscal year in a regular or supplemental appropriation Act to carry out such section, and using such $30,000,000 for purposes described in subsection (c) of such section;
(ii) $15,000,000 for such fiscal year shall be available to eligible institutions described in subsection (a)(4) and shall be made available as grants under section 1059d of this title, treating such $15,000,000 as part of the amount appropriated for such fiscal year in a regular or supplemental appropriation Act to carry out such section and using such $15,000,000 for purposes described in subsection (c) of such section;
(iii) $5,000,000 for such fiscal year shall be available to eligible institutions described in subsection (a)(6) for activities described in section 1057(c) of this title; and
(iv) $5,000,000 for such fiscal year shall be available to eligible institutions described in subsection (a)(7)—
(I) to plan, develop, undertake, and carry out activities to improve and expand such institutions’ capacity to serve Native Americans, which may include—
(aa) the purchase, rental, or lease of scientific or laboratory equipment for educational purposes, including instructional and research purposes;
(bb) renovation and improvement in classroom, library, laboratory, and other instructional facilities;
(cc) support of faculty exchanges, faculty development, and faculty fellowships to assist faculty in attaining advanced degrees in the faculty's field of instruction;
(dd) curriculum development and academic instruction;
(ee) the purchase of library books, periodicals, microfilm, and other educational materials;
(ff) funds and administrative management, and acquisition of equipment for use in strengthening funds management;
(gg) the joint use of facilities such as laboratories and libraries; and
(hh) academic tutoring and counseling programs and student support services; and
(II) to which the Secretary, to the extent possible and consistent with a competitive process under which such grants are awarded, allocates funds under this clause to ensure maximum and equitable distribution among all such eligible institutions.
The term “Asian American” has the meaning given the term “Asian” in the Office of Management and Budget's Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity as published on October 30, 1997 (62 Fed. Reg. 58789).
The term “Asian American and Native American Pacific Islander-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 10 percent Asian American and Native American Pacific Islander students.
The term “enrollment of needy students” means the enrollment at an institution of higher education with respect to which not less than 50 percent of the undergraduate students enrolled in an academic program leading to a degree—
(A) in the second fiscal year preceding the fiscal year for which the determination is made, were Federal Pell Grant recipients for such year;
(B) come from families that receive benefits under a means-tested Federal benefit program (as defined in paragraph (5));
(C) attended a public or nonprofit private secondary school—
(i) that is in the school district of a local educational agency that was eligible for assistance under part A of title I of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6311 et seq.] for any year during which the student attended such secondary school; and
(ii) which for the purpose of this paragraph and for that year was 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 a measure of poverty described in section 1113(a)(5) of such Act [20 U.S.C. 6313(a)(5)] exceeds 30 percent of the total enrollment of such school; or
(D) are first-generation college students (as that term is defined in section 1070a–11(h) of this title), and a majority of such first-generation college students are low-income individuals.
The term “low-income individual” has the meaning given such term in section 1070a–11(h) of this title.
The term “means-tested Federal benefit program” means a program of the Federal Government, other than a program under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, in which eligibility for the programs’ benefits or the amount of such benefits are determined on the basis of income or resources of the individual or family seeking the benefit.
The term “Native American” means an individual who is of a tribe, people, or culture that is indigenous to the United States.
The term “Native American Pacific Islander” means any descendant of the aboriginal people of any island in the Pacific Ocean that is a territory or possession of the United States.
The term “Native American-serving nontribal institution” means an institution of higher education that—
(A) at the time of application—
(i) has an enrollment of undergraduate students that is not less than 10 percent Native American students; and
(ii) is not a Tribal College or University (as defined in section 1059c of this title); and
(B) submits to the Secretary such enrollment data as may be necessary to demonstrate that the institution is described in subparagraph (A), along with such other information and data as the Secretary may by regulation require.
The term “Predominantly Black institution” means an institution of higher education that—
(A) has an enrollment of needy students as defined by paragraph (3);
(B) has an average educational and general expenditure which is low, per full-time equivalent undergraduate student in comparison with the average educational and general expenditure per full-time equivalent undergraduate student of institutions of higher education that offer similar instruction, except that the Secretary may apply the waiver requirements described in section 1068a(b) of this title to this subparagraph in the same manner as the Secretary applies the waiver requirements to section 1058(b)(1)(B) of this title;
(C) has an enrollment of undergraduate students—
(i) that is at least 40 percent Black American students;
(ii) that is at least 1,000 undergraduate students;
(iii) of which not less than 50 percent of the undergraduate students enrolled at the institution are low-income individuals or first-generation college students (as that term is defined in section 1070a–11(h) of this title); and
(iv) of which not less than 50 percent of the undergraduate students are enrolled in an educational program leading to a bachelor's or associate's degree that the institution is licensed to award by the State in which the institution is located;
(D) is legally authorized to provide, and provides within the State, an educational program for which the institution of higher education awards a bachelor's degree, or in the case of a junior or community college, an associate's degree;
(E) 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; and
(F) is not receiving assistance under—
(i) part B;
(ii) part A of subchapter V; or
(iii) an annual authorization of appropriations under the Act of March 2, 1867 (14 Stat. 438; 20 U.S.C. 123).
(Pub. L. 89–329, title III, §371, formerly title IV, §499A, as added Pub. L. 110–84, title VIII, §802, Sept. 27, 2007, 121 Stat. 817; renumbered title III, §371, and amended Pub. L. 110–315, title III, §316(a)(3), (b), (c), Aug. 14, 2008, 122 Stat. 3185; Pub. L. 111–39, title III, §301(7), July 1, 2009, 123 Stat. 1937; Pub. L. 111–152, title II, §2103, Mar. 30, 2010, 124 Stat. 1074.)
The Elementary and Secondary Education Act of 1965, referred to in subsec. (c)(3)(C)(i), is Pub. L. 89–10, Apr. 11, 1965, 79 Stat. 27. Part A of title I of the Act is classified generally to part A (§6311 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.
The Act of March 2, 1867, referred to in subsec. (c)(9)(F)(iii), is act Mar. 2, 1867, ch. 162, 14 Stat. 438. Provisions relating to authorization of appropriations are contained in section 8 of the Act, which is classified to section 123 of this title. For complete classification of this Act to the Code, see Tables.
Section was formerly classified to section 1099e of this title prior to renumbering by Pub. L. 110–315.
2010—Subsec. (b)(1)(A). Pub. L. 111–152 substituted “through 2019. The authority to award grants under this section shall expire at the end of fiscal year 2019.” for “and 2009. The authority to award grants under this section shall expire at the end of fiscal year 2009.”
2009—Subsec. (c)(3)(D), (4), (9)(C)(iii). Pub. L. 111–39, §301(7)(A)–(C)(i), substituted “1070a–11(h)” for “1070a–11(g)”.
Subsec. (c)(9)(F). Pub. L. 111–39, §301(7)(C)(ii), amended subpar. (F) generally. Prior to amendment, subpar. (F) read as follows: “is not receiving assistance under part B of this subchapter.”
2008—Subsec. (b)(1). Pub. L. 110–315, §316(c), amended par. (1) generally. Prior to amendment, text read as follows: “There shall be available to the Secretary to carry out this section, from funds not otherwise appropriated, $255,000,000 for each of the fiscal years 2008 and 2009. The authority to award grants under this section shall expire at the end of fiscal year 2009.”
Subsec. (b)(2)(C)(i). Pub. L. 110–315, §316(b)(1), substituted “this subchapter” for “subchapter III” in two places.
Subsec. (c)(9)(F). Pub. L. 110–315, §316(b)(2), substituted “this subchapter” for “subchapter III”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Section effective Oct. 1, 2007, see section 1(c) of Pub. L. 110–84, set out as an Effective Date of 2007 Amendment note under section 1070a of this title.
1 So in original. Probably should not be capitalized.
Pub. L. 110–315, title III, §316(a)(1), Aug. 14, 2008, 122 Stat. 3185, redesignated part F (§1068 et seq.) of this subchapter as part G of this subchapter.
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.
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.
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 (D); and
(8) include such other information as the Secretary may prescribe.
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.
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.
The Secretary, directly or by grant or contract, may provide technical assistance to eligible institutions to prepare the institutions to qualify, apply for, and maintain a grant, under this subchapter.
(Pub. L. 89–329, title III, §391, formerly §351, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1302; amended Pub. L. 100–50, §2(a)(13), June 3, 1987, 101 Stat. 336; Pub. L. 102–325, title III, §305(a), July 23, 1992, 106 Stat. 478; renumbered §391 and amended Pub. L. 105–244, title III, §§301(a)(2), (c)(11), 308(a)–(c), Oct. 7, 1998, 112 Stat. 1636, 1637, 1648, 1649; Pub. L. 110–315, title III, §§317, 320(4), Aug. 14, 2008, 122 Stat. 3185, 3188.)
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.
Section was formerly classified to section 1066 of this title prior to renumbering by Pub. L. 105–244.
A prior section 1068, Pub. L. 89–329, title III, §353, as added Pub. L. 99–498, title III, §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, §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, §343, as added Pub. L. 96–374, title III, §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, §408, Nov. 8, 1965, 79 Stat. 1235; Pub. L. 90–575, title I, §105(a), Oct. 16, 1968, 82 Stat. 1018; Pub. L. 91–230, title VIII, §801, Apr. 13, 1970, 84 Stat. 190; Pub. L. 92–318, title I, §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, §131(b)(1), June 23, 1972, 86 Stat. 247.
2008—Subsec. (b)(7)(E). Pub. L. 110–315, §320(4), substituted “subparagraph (D)” for “subparagraph (E)”.
Subsec. (e). Pub. L. 110–315, §317, added subsec. (e).
1998—Subsec. (a). Pub. L. 105–244, §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, §308(b), inserted “, D or E” after “part C”.
Subsec. (b)(6). Pub. L. 105–244, §§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”.
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. 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 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.
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.
(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) The Secretary shall submit to the Congress every other year a report concerning the 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 which enroll significant numbers of Black American, Hispanic, Native American, Asian American, or Native Hawaiian students under part A, as the case may be. Such report shall—
(A) identify the factors referred to in paragraph (1) which were considered by the Secretary as factors that distorted the determination of compliance with subparagraphs (A) and (B) of section 1058(b)(1) of this title; and
(B) contain a list of each institution determined to be an eligible institution under part A including a statement of the reasons for each such determination.
(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.
Notwithstanding any other provision of law, unless enacted with specific reference to this section, for any affected institution that was receiving assistance under this subchapter at the time of a Gulf hurricane disaster, the Secretary shall, for each of the fiscal years 2009 through 2011 (and may, for each of the fiscal years 2012 and 2013)—
(A) waive—
(i) the eligibility data requirements set forth in section 1068(d) of this title;
(ii) the wait-out period set forth in section 1059(d) of this title;
(iii) the allotment requirements under section 1063 of this title; and
(iv) the use of the funding formula developed pursuant to section 1063b(f)(3) of this title;
(B) waive or modify any statutory or regulatory provision to ensure that affected institutions that were receiving assistance under this subchapter at the time of a Gulf hurricane disaster are not adversely affected by any formula calculation for fiscal year 2009 or for any of the four succeeding fiscal years, as necessary; and
(C) make available to each affected institution an amount that is not less than the amount made available to such institution under this subchapter for fiscal year 2006, except that for any fiscal year for which the funds appropriated for payments under this subchapter are less than the appropriated level for fiscal year 2006, the amount made available to such institutions shall be ratably reduced among the institutions receiving funds under this subchapter.
In this subsection:
The term “affected institution” means an institution of higher education that—
(i) is—
(I) a part A institution (which term shall have the meaning given the term “eligible institution” under section 1058(b) of this title); or
(II) a part B institution, as such term is defined in section 1061(2) of this title, or as identified in section 1063b(e) of this title;
(ii) is located in an area affected by a Gulf hurricane disaster; and
(iii) is able to demonstrate that, as a result of the impact of a Gulf hurricane disaster, the institution—
(I) incurred physical damage;
(II) has pursued collateral source compensation from insurance, the Federal Emergency Management Agency, and the Small Business Administration, as appropriate; and
(III) was not able to fully reopen in existing facilities or to fully reopen to the pre-hurricane enrollment levels during the 30-day period beginning on August 29, 2005.
The terms “area affected by a Gulf hurricane disaster” and “Gulf hurricane disaster” have the meanings given such terms in section 209 of the Higher Education Hurricane Relief Act of 2005 (Public Law 109–148, 119 Stat. 2809).
(Pub. L. 89–329, title III, §392, formerly §352, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1304; amended Pub. L. 100–50, §2(a)(14), (15), June 3, 1987, 101 Stat. 336; Pub. L. 102–325, title III, §305(b), July 23, 1992, 106 Stat. 478; renumbered §392 and amended Pub. L. 105–244, title III, §§301(a)(2), 308(d), Oct. 7, 1998, 112 Stat. 1636, 1649; Pub. L. 110–315, title III, §§318, 320(5), Aug. 14, 2008, 122 Stat. 3185, 3188; Pub. L. 111–39, title III, §301(8), July 1, 2009, 123 Stat. 1938.)
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, §302(a)(1)(B), (C), July 23, 1992, 106 Stat. 472.
Section 209 of the Higher Education Hurricane Relief Act of 2005, referred to in subsec. (c)(2)(B), is section 209 of title IV of div. B of Pub. L. 109–148, Dec. 30, 2005, 119 Stat. 2808, which is not classified to the Code.
Section was formerly classified to section 1067 of this title prior to renumbering by Pub. L. 105–244.
2009—Subsec. (a)(6). Pub. L. 111–39 made technical amendment to reference in original act which appears in text as reference to section 1801 of title 25.
2008—Subsec. (b)(2). Pub. L. 110–315, §320(5), substituted “eligible institutions under part A” for “eligible institutions under part A institutions” in introductory provisions. See Codification note above.
Subsec. (c). Pub. L. 110–315, §318, added subsec. (c).
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, §2(a)(14), substituted “low-income” for “low- and middle-income”.
Subsec. (b)(3). Pub. L. 100–50, §2(a)(15), added par. (3).
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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. 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 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.
For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which the last item on page 79 identifies a reporting provision which, as subsequently amended, is contained in subsec. (b)(2) of this section), see section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance.
1 So in original. Probably should be “part.”
2 See References in Text note below.
(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.
In awarding grants under this subchapter, the Secretary shall take into consideration the recommendations of the panel made under subsection (a) of this section.
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.
The provisions of this section shall not apply to applications submitted under part D of this subchapter.
(Pub. L. 89–329, title III, §393, formerly §353, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1305; renumbered §393 and amended Pub. L. 105–244, title III, §§301(a)(2), 308(e), Oct. 7, 1998, 112 Stat. 1636, 1649.)
Section was formerly classified to section 1068 of this title prior to renumbering by Pub. L. 105–244.
1998—Subsec. (a)(2). Pub. L. 105–244, §308(e)(1), substituted “Tribal Colleges and Universities” for “Native American colleges and universities”.
Subsec. (d). Pub. L. 105–244, §308(e)(2), added subsec. (d).
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.
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.
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.
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.
(Pub. L. 89–329, title III, §394, formerly §354, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1305; renumbered §394, Pub. L. 105–244, title III, §301(a)(2), Oct. 7, 1998, 112 Stat. 1636.)
Section was formerly classified to section 1069 of this title prior to renumbering by Pub. L. 105–244.
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.
(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.
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.
(Pub. L. 89–329, title III, §395, formerly §356, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1306; amended Pub. L. 102–325, title III, §305(d), July 23, 1992, 106 Stat. 478; Pub. L. 104–208, div. A, title I, §101(e) [title VII, §709(d)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–314; renumbered §395 and amended Pub. L. 105–244, title III, §§301(a)(2), 308(f), Oct. 7, 1998, 112 Stat. 1636, 1649.)
Section was formerly classified to section 1069b of this title prior to renumbering by Pub. L. 105–244.
1998—Subsec. (b)(2). Pub. L. 105–244, §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”.
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. 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.
The funds appropriated under section 1068h 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.
(Pub. L. 89–329, title III, §396, formerly §357, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1307; renumbered §396, Pub. L. 105–244, title III, §301(a)(2), Oct. 7, 1998, 112 Stat. 1636; amended Pub. L. 110–315, title III, §320(6), Aug. 14, 2008, 122 Stat. 3188.)
2008—Pub. L. 110–315 substituted “1068h of this title” for “1069f of this title” in introductory provisions.
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.
(Pub. L. 89–329, title III, §397, formerly §358, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1307; renumbered §397, Pub. L. 105–244, title III, §301(a)(2), Oct. 7, 1998, 112 Stat. 1636.)
Section was formerly classified to section 1069d of this title prior to renumbering by Pub. L. 105–244.
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.
(Pub. L. 89–329, title III, §398, as added Pub. L. 105–244, title III, §308(g), Oct. 7, 1998, 112 Stat. 1649.)
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.
(A) There are authorized to be appropriated to carry out part A (other than sections 1059c through 1059g of this title), $135,000,000 for fiscal year 2009, and such sums as may be necessary for each of the five succeeding fiscal years.
(B) There are authorized to be appropriated to carry out section 1059c of this title, $30,000,000 for fiscal year 2009, and such sums as may be necessary for each of the five succeeding fiscal years.
(C) There are authorized to be appropriated to carry out section 1059d of this title, $15,000,000 for fiscal year 2009, and such sums as may be necessary for each of the five succeeding fiscal years.
(D) There are authorized to be appropriated to carry out section 1059e of this title, $75,000,000 for fiscal year 2009 and each of the five succeeding fiscal years.
(E) There are authorized to be appropriated to carry out section 1059f of this title, $25,000,000 for fiscal year 2009, and such sums as may be necessary for each of the five succeeding fiscal years.
(F) There are authorized to be appropriated to carry out section 1059g of this title, $30,000,000 for fiscal year 2009, and such sums as may be necessary for each of the five succeeding fiscal years.
(A) There are authorized to be appropriated to carry out part B (other than section 1063b of this title), $375,000,000 for fiscal year 2009, and such sums as may be necessary for each of the five succeeding fiscal years.
(B) There are authorized to be appropriated to carry out section 1063b of this title, $125,000,000 for fiscal year 2009, and such sums as may be necessary for each of the five succeeding fiscal years.
There are authorized to be appropriated to carry out part C, $10,000,000 for fiscal year 2009, and such sums as may be necessary for each of the five succeeding fiscal years.
(A) There are authorized to be appropriated to carry out part D (other than section 1066d(9) of this title, but including section 1066f of this title), $185,000 for fiscal year 2009, and such sums as may be necessary for each of the five succeeding fiscal years.
(B) There are authorized to be appropriated to carry out section 1066d(9) of this title such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.
(A) There are authorized to be appropriated to carry out subpart 1 of part E, $12,000,000 for fiscal year 2009, and such sums as may be necessary for each of the five succeeding fiscal years.
(B) There are authorized to be appropriated to carry out subpart 2 of part E, such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.
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.
(Pub. L. 89–329, title III, §399, formerly §360, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1307; amended Pub. L. 102–325, title III, §305(e)–(g), July 23, 1992, 106 Stat. 479; renumbered §399, and amended Pub. L. 105–244, title III, §§301(a)(2), 308(h), Oct. 7, 1998, 112 Stat. 1636, 1649; Pub. L. 110–315, title III, §319, Aug. 14, 2008, 122 Stat. 3186.)
Section was formerly classified to section 1069f of this title prior to renumbering by Pub. L. 105–244.
A prior section 1069, Pub. L. 89–329, title III, §354, as added Pub. L. 99–498, title III, §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, §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, §344, as added Pub. L. 96–374, title III, §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, §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, §131(b)(1), June 23, 1972, 86 Stat. 247.
A prior section 1069a, Pub. L. 89–329, title III, §355, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1306; amended Pub. L. 100–50, §2(a)(16), (17), June 3, 1987, 101 Stat. 336, related to special payments rules, prior to repeal by Pub. L. 102–325, §2, title III, §305(c), July 23, 1992, 106 Stat. 458, 478, effective Oct. 1, 1992.
Another prior section 1069a, Pub. L. 89–329, title III, §345, as added Pub. L. 96–374, title III, §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, §356, as added Pub. L. 99–498, title III, §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, §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, §346, as added Pub. L. 96–374, title III, §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, §357, as added Pub. L. 99–498, title III, §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, §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, §347, as added Pub. L. 96–374, title III, §301, Oct. 3, 1980, 94 Stat. 1400, and Pub. L. 98–95, §3, Sept. 26, 1983, 97 Stat. 711; Pub. L. 98–312, §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, §358, as added Pub. L. 99–498, title III, §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, §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, §359, as added Pub. L. 99–498, title III, §301(a), Oct. 17, 1986, 100 Stat. 1307, required application for challenge grant, prior to repeal by Pub. L. 102–325, §2, title III, §305(c), July 23, 1992, 106 Stat. 458, 478, effective Oct. 1, 1992.
A prior section 1069f, Pub. L. 89–329, title III, §360, as added Pub. L. 99–498, title III, §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, §301(a)(2), Oct. 7, 1998, 112 Stat. 1636, and transferred to this section.
2008—Subsec. (a). Pub. L. 110–315 amended subsec. (a) generally. Prior to amendment, subsec. (a) related to authorizations for parts A to E for fiscal year 1999 and each of the 4 succeeding fiscal years.
1998—Subsec. (a)(1)(A). Pub. L. 105–244, §308(h)(1)(A), substituted “1999” for “1993”.
Subsec. (a)(1)(B). Pub. L. 105–244, §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, §308(h)(1)(C), added subpar. (C).
Subsec. (a)(2)(A). Pub. L. 105–244, §308(h)(2)(A), substituted “1999” for “1993”.
Subsec. (a)(2)(B). Pub. L. 105–244, §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, §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, §308(h)(4), added pars. (4) and (5).
Subsec. (c). Pub. L. 105–244, §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, §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, §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, §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, §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, §305(g), added subsec. (e).
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. 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.
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, §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.
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.
The Secretary shall, in accordance with subparts 1 through 9 of this part, carry out programs to achieve the purposes of this part.
(Pub. L. 89–329, title IV, §400, formerly §401, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1308; renumbered §400, Pub. L. 102–325, title IV, §402(a)(3), July 23, 1992, 106 Stat. 482; amended Pub. L. 105–244, title IV, §401(g)(1), Oct. 7, 1998, 112 Stat. 1652; Pub. L. 111–39, title IV, §401(a)(1), July 1, 2009, 123 Stat. 1938.)
A prior section 1070, Pub. L. 89–329, title IV, §401, as added and amended Pub. L. 92–318, title I, §131(b)(1), title X, §1001(c)(1), (2), June 23, 1972, 86 Stat. 247, 381; Pub. L. 94–482, title I, §125, Oct. 12, 1976, 90 Stat. 2096; Pub. L. 96–374, title IV, §401, title XIII, §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.
2009—Subsec. (b). Pub. L. 111–39 substituted “1 through 9” for “1 through 8”.
1998—Subsec. (a)(1). Pub. L. 105–244 substituted “Federal Pell Grants” for “basic educational opportunity grants”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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.
Pub. L. 108–76, §§1–5, Aug. 18, 2003, 117 Stat. 904, formerly set out in a note under this section, was transferred to part F–1 (§1098aa et seq.) of this subchapter. Pub. L. 108–76, §6, Aug. 18, 2003, 117 Stat. 908, as amended by Pub. L. 109–78, §1, Sept. 30, 2005, 119 Stat. 2043, formerly set out in the same note under this section, which provided for termination of Pub. L. 108–76 on Sept. 30, 2007, was repealed by Pub. L. 110–93, §2, Sept. 30, 2007, 121 Stat. 999.
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.
Pub. L. 105–244, title VIII, part C, Oct. 7, 1998, 112 Stat. 1810, known as the Community Scholarship Mobilization Act, which established regional, State and community program centers to foster development of local entities in high poverty areas that promote higher education goals for low-income students with academic support and scholarship assistance for postsecondary education, was repealed by Pub. L. 110–315, title IX, §931(2), Aug. 14, 2008, 122 Stat. 3456.
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, §101(f) [title VIII, §301(a)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–410.
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, §6(b)(2), Oct. 31, 1998, 112 Stat. 3128.
Pub. L. 102–325, title XV, §1543, July 23, 1992, 106 Stat. 836, as amended by Pub. L. 105–244, title VIII, §836, Oct. 7, 1998, 112 Stat. 1820; Pub. L. 106–554, §1(a)(1) [title III, §319], Dec. 21, 2000, 114 Stat. 2763, 2763A–49; Pub. L. 107–116, title III, §305(a), Jan. 10, 2002, 115 Stat. 2208; Pub. L. 110–315, title IX, §934, Aug. 14, 2008, 122 Stat. 3460, provided that:
“(a)
“(1)
“(2)
“(3)
“(b)
“(c)
“(d)
“(e)
[Pub. L. 107–116, title III, §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].”]
Pub. L. 102–26, §§4–6, Apr. 9, 1991, 105 Stat. 125–127, provided that:
“(a)
“(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)
“(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)
“(d)
“(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.
“(a)
“(b)
“The provisions of sections 4 and 5 shall cease to be effective on September 30, 1997.”
Pub. L. 102–25, title III, part E (§§371–376), Apr. 6, 1991, 105 Stat. 93, provided that:
“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.]
“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.”
Pub. L. 105–244, title IV, §401(g)(2), Oct. 7, 1998, 112 Stat. 1652, amended subpart heading generally.
(1) For each fiscal year through fiscal year 2017, 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, 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”.
(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 this section.
(2)(A) The amount of the Federal Pell Grant for a student eligible under this part shall be—
(i) the maximum Federal Pell Grant, as specified in the last enacted appropriation Act applicable to that award year, plus
(ii) the amount of the increase calculated under paragraph (7)(B) for that year, less
(iii) 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) 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.
(4) 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 ten percent of the maximum amount of a Federal Pell Grant award determined under paragraph (2)(A) for such academic year.
(5) 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 maximum amount of a Federal Pell Grant award determined under paragraph (2)(A), for which a student is eligible during such award 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.
(6) No Federal Pell Grant shall be awarded under this subpart to any individual who is incarcerated in any Federal or State penal institution or who is subject to an involuntary civil commitment upon completion of a period of incarceration for a forcible or nonforcible sexual offense (as determined in accordance with the Federal Bureau of Investigation's Uniform Crime Reporting Program).
(7)
(A)
(i) $2,030,000,000 for fiscal year 2008;
(ii) $2,733,000,000 for fiscal year 2009;
(iii) to carry out subparagraph (B) of this paragraph, such sums as may be necessary for fiscal year 2010 and each subsequent fiscal year to provide the amount of increase of the maximum Federal Pell Grant required by clauses (ii) and (iii) of subparagraph (B); and
(iv) to carry out this section—
(I) $13,500,000,000 for fiscal year 2011;
(II) $13,795,000,000 for fiscal year 2012;
(III) $7,587,000,000 for fiscal year 2013;
(IV) $588,000,000 for fiscal year 2014;
(V) $0 for fiscal year 2015;
(VI) $0 for fiscal year 2016;
(VII) $1,574,000,000 for fiscal year 2017;
(VIII) $1,382,000,000 for fiscal year 2018;
(IX) $1,409,000,000 for fiscal year 2019;
(X) $1,430,000,000 for fiscal year 2020; and
(XI) $1,145,000,000 for fiscal year 2021 and each succeeding fiscal year.
(B)
(i) $490 for each of the award years 2008–2009 and 2009–2010;
(ii) $690 for each of the award years 2010–2011, 2011–2012, and 2012–2013; and
(iii) the amount determined under subparagraph (C) for each succeeding award year.
(C)
(i)
(I) $5,550 or the total maximum Federal Pell Grant for the preceding award year (as determined under clause (iv)(II)), whichever is greater, increased by a percentage equal to the annual adjustment percentage for award year 2013–2014, reduced by
(II) $4,860 or the maximum Federal Pell Grant for which a student was eligible for the preceding award year, as specified in the last enacted appropriation Act applicable to that year, whichever is greater; and
(III) rounded to the nearest $5.
(ii)
(I) the total maximum Federal Pell Grant for the preceding award year (as determined under clause (iv)(II)), increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this subparagraph is being determined, reduced by
(II) $4,860 or the maximum Federal Pell Grant for which a student was eligible for the preceding award year, as specified in the last enacted appropriation Act applicable to that year, whichever is greater; and
(III) rounded to the nearest $5.
(iii)
(iv)
(I) the term “annual adjustment percentage” as applied to an award year, is equal to the estimated percentage change in the Consumer Price Index (as determined by the Secretary, using the definition in section 1087rr(f) of this title) for the most recent calendar year ending prior to the beginning of that award year; and
(II) the term “total maximum Federal Pell Grant” as applied to a preceding award year, is equal to the sum of—
(aa) the maximum Federal Pell Grant for which a student is eligible during an award year, as specified in the last enacted appropriation Act applicable to that preceding award year; and
(bb) the amount of the increase in the maximum Federal Pell Grant required by this paragraph for that preceding award year.
(D)
(E)
(F)
(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.
(5) The period during which a student may receive Federal Pell Grants shall not exceed 12 semesters, or the equivalent of 12 semesters, as determined by the Secretary by regulation. Such regulations shall provide, with respect to a student who received a Federal Pell Grant for a term but was enrolled at a fraction of full-time, that only that same fraction of such semester or equivalent shall count towards such duration limits.
(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.
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.
(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 of the Senate, the Committee on Appropriations of the House of Representatives, and the authorizing committees.
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).
(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.
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 chapter 81 of title 41.
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.
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.
(Pub. L. 89–329, title IV, §401, formerly §411, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1309; amended Pub. L. 100–50, §3(a), June 3, 1987, 101 Stat. 337; renumbered §401 and amended Pub. L. 102–325, title IV, §§401(a)–(h), 402(a)(3), July 23, 1992, 106 Stat. 479–482; Pub. L. 103–208, §2(b)(1)–(5), (k)(1), Dec. 20, 1993, 107 Stat. 2458, 2485; Pub. L. 103–322, title II, §20411(a), Sept. 13, 1994, 108 Stat. 1828; Pub. L. 105–244, title IV, §401(a)–(f), (g)(3), (4), Oct. 7, 1998, 112 Stat. 1650–1652; Pub. L. 110–84, title I, §§101(a), 102, Sept. 27, 2007, 121 Stat. 784; Pub. L. 110–315, title I, §103(b)(3), title IV, §401(a)(1), (b), (c)(1), Aug. 14, 2008, 122 Stat. 3088, 3188, 3189; Pub. L. 111–5, div. A, title VIII, §806, Feb. 17, 2009, 123 Stat. 190; Pub. L. 111–39, title IV, §401(a)(2), (3), July 1, 2009, 123 Stat. 1938; Pub. L. 111–152, title II, §2101(a), (b)(1), Mar. 30, 2010, 124 Stat. 1071, 1073; Pub. L. 112–10, div. B, title VIII, §1860(a), Apr. 15, 2011, 125 Stat. 169; Pub. L. 112–25, title V, §501, Aug. 2, 2011, 125 Stat. 266; Pub. L. 112–74, div. F, title III, §309(a), (f), Dec. 23, 2011, 125 Stat. 1100, 1103.)
In subsec. (i), “chapter 81 of title 41” substituted for “subtitle D of title V of Public Law 100–690” on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
A prior section 1070a, Pub. L. 89–329, title IV, §411, as added Pub. L. 92–318, title I, §131(b)(1), June 23, 1972, 86 Stat. 248; amended Pub. L. 94–328, §2(f), June 30, 1976, 90 Stat. 727; Pub. L. 94–482, title I, §121(a), (b)(1), (c)–(i), Oct. 12, 1976, 90 Stat. 2091–2093; Pub. L. 95–43, §1(a)(5), June 15, 1977, 91 Stat. 213; Pub. L. 95–566, §2, Nov. 1, 1978, 92 Stat. 2402; Pub. L. 96–49, §5(a)(1), (2)(A), Aug. 13, 1979, 93 Stat. 351; Pub. L. 96–374, title IV, §402, title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1401, 1503; Pub. L. 97–301, §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, §131(b)(1), title X, §1001(c)(1), (2), June 23, 1972, 86 Stat. 247, 381; Pub. L. 94–482, title I, §125, Oct. 12, 1976, 90 Stat. 2096; Pub. L. 96–374, title IV, §401, title XIII, §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.
2011—Subsec. (b)(2)(A)(ii). Pub. L. 112–10, §1860(a)(1), substituted “paragraph (7)(B)” for “paragraph (8)(B)”.
Subsec. (b)(4). Pub. L. 112–74, §309(a)(1), substituted period at end for “, except that a student who is eligible for a Federal Pell Grant in an amount that is equal to or greater than five percent of such Federal Pell Grant amount but less than ten percent of such Federal Pell Grant amount shall be awarded a Federal Pell grant in the amount of ten percent of such Federal Pell Grant amount.”
Subsec. (b)(5). Pub. L. 112–10, §1860(a)(4), redesignated par. (6) as (5).
Pub. L. 112–10, §1860(a)(2), struck out par. (5) which read as follows:
“(A) The Secretary shall award a student not more than two Federal Pell Grants during a single award year to permit such student to accelerate the student's progress toward a degree or certificate if the student is enrolled—
“(i) on at least a half-time basis for a period of more than one academic year, or more than two semesters or an equivalent period of time, during a single award year; and
“(ii) in a program of instruction at an institution of higher education for which the institution awards an associate or baccalaureate degree or a certificate.
“(B) In the case of a student receiving more than one Federal Pell Grant in a single award year under subparagraph (A), the total amount of Federal Pell Grants awarded to such student for the award year may exceed the maximum basic grant level specified in the appropriate appropriations Act for such award year.”
Subsec. (b)(6). Pub. L. 112–10, §1860(a)(4), redesignated par. (7) as (6). Former par. (6) redesignated (5).
Subsec. (b)(7). Pub. L. 112–10, §1860(a)(4), redesignated par. (8) as (7). Former par. (7) redesignated (6).
Subsec. (b)(7)(A)(iv). Pub. L. 112–74, §309(f), amended cl. (iv) generally. Prior to amendment, cl. (iv) authorized appropriations for fiscal years 2011 to 2021 and succeeding fiscal years.
Subsec. (b)(7)(A)(iv)(II). Pub. L. 112–25, §501(1), substituted “$13,183,000,000” for “$3,183,000,000”.
Subsec. (b)(7)(A)(iv)(III). Pub. L. 112–25, §501(2), substituted “$7,000,000,000” for “$0”.
Subsec. (b)(8). Pub. L. 112–10, §1860(a)(4), redesignated par. (8) as (7).
Subsec. (b)(8)(A)(iv). Pub. L. 112–10, §1860(a)(3)(A), amended cl. (iv) generally. Prior to amendment, cl. (iv) read as follows: “to carry out this section, $13,500,000,000 for fiscal year 2011.”
Subsec. (b)(8)(C)(i)(I), (ii)(I). Pub. L. 112–10, §1860(a)(3)(B), substituted “clause (iv)(II)” for “clause (v)(II)”.
Subsec. (c)(5). Pub. L. 112–74, §309(a)(2), substituted “12” for “18” in two places and struck out at end “The provisions of this paragraph shall apply only to a student who receives a Federal Pell Grant for the first time on or after July 1, 2008.”
2010—Subsec. (b)(2)(A). Pub. L. 111–152, §2101(a)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) established grant amounts for academic years 2009–2010 to 2014–2015.
Subsec. (b)(4). Pub. L. 111–152, §2101(b)(1)(A), substituted “maximum amount of a Federal Pell Grant award determined under paragraph (2)(A)” for “maximum basic grant level specified in the appropriate appropriation Act” and substituted “such Federal Pell Grant amount” for “such level” wherever appearing.
Subsec. (b)(6). Pub. L. 111–152, §2101(b)(1)(B), substituted “the maximum amount of a Federal Pell Grant award determined under paragraph (2)(A), for which a student is eligible during such award year” for “the grant level specified in the appropriate Appropriation Act for this subpart for such year”.
Subsec. (b)(8)(A). Pub. L. 111–152, §2101(a)(2)(A)(i), struck out “, to carry out subparagraph (B) of this paragraph” after “are appropriated” in introductory provisions.
Subsec. (b)(8)(A)(iii) to (x). Pub. L. 111–152, §2101(a)(2)(A)(ii), added cls. (iii) and (iv) and struck out former cls. (iii) to (x), which appropriated additional funds for fiscal years 2010 to 2017.
Subsec. (b)(8)(B). Pub. L. 111–152, §2101(a)(2)(B)(i), substituted “clauses (i) through (iii) of subparagraph (A)” for “subparagraph (A)” in introductory provisions.
Subsec. (b)(8)(B)(ii). Pub. L. 111–152, §2101(a)(2)(B)(ii), substituted “, 2011–2012, and 2012–2013” for “and 2011–2012”.
Subsec. (b)(8)(B)(iii). Pub. L. 111–152, §2101(a)(2)(B)(iii), added cl. (iii) and struck out former cl. (iii) which read as follows: “$1,090 for award year 2012–2013.”
Subsec. (b)(8)(C). Pub. L. 111–152, §2101(a)(2)(C), added subpar. (C) and struck out former subpar. (C). Prior to amendment, text read as follows: “The Secretary shall only award an increased amount of a Federal Pell Grant under this section for any award year pursuant to the provisions of this paragraph to students who qualify for a Federal Pell Grant award under the maximum grant award enacted in the annual appropriation Act for such award year without regard to the provisions of this paragraph.”
2009—Subsec. (a)(1). Pub. L. 111–39, §401(a)(2)(A), substituted “manner,” for “manner,,”.
Subsec. (b)(1). Pub. L. 111–39, §401(a)(2)(B), made technical amendment to reference in original act which appears in text as reference to this section.
Subsec. (b)(8)(A)(ii), (iii). Pub. L. 111–5, which directed amendment of par. (9)(A) by substituting “$2,733,000,000” for “$2,090,000,000” in cl. (ii) and “$3,861,000,000” for “$3,030,000,000” in cl. (iii), was executed by making the substitutions in par. (8)(A) to reflect the probable intent of Congress.
Subsec. (b)(8)(A)(vi), (viii). Pub. L. 111–39, §401(a)(2)(C), which directed amendment of par. (9)(A) by substituting “$258,000,000” for “$105,000,000” in cl. (vi) and “$4,452,000,000” for “$4,400,000,000” in cl. (viii) effective Aug. 14, 2008, was executed by making the substitutions in par. (8)(A). Subsec. (b)(8) would have been subsec. (b)(9) on Aug. 14, 2008, but for the probable intent execution of the amendment by Pub. L. 110–84, §101(a)(2). See 2007 Amendment note below.
Subsec. (f)(4). Pub. L. 111–39, §401(a)(3), struck out par. (4) which attributed expected family contribution of zero to certain eligible students whose parent or guardian died as a result of performing military service in Iraq or Afghanistan after Sept. 11, 2001. See section 1070h of this title.
2008—Subsec. (b). Pub. L. 110–315, §401(a)(1)(B), which directed amendment of subsec. (b) by designating the pars. following par. (2), in the order in which such pars. appear, as pars. (3) through (8), was a technical correction to sequence of amendments by Pub. L. 110–84 and required no change in text. See 2007 Amendment notes below.
Subsec. (b)(2)(A). Pub. L. 110–315, §401(a)(1)(A), amended subpar. (A) generally, substituting Pell Grant amounts for academic years 2009 to 2015 for amounts for academic years 1999 to 2004.
Subsec. (b)(4). Pub. L. 110–315, §401(a)(1)(C), substituted “ten percent of the maximum basic grant level specified in the appropriate appropriation Act for such academic year, except that a student who is eligible for a Federal Pell Grant in an amount that is equal to or greater than five percent of such level but less than ten percent of such level shall be awarded a Federal Pell grant in the amount of ten percent of such level” for “$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”.
Subsec. (b)(5). Pub. L. 110–315, §401(a)(1)(D), added par. (5) and struck out former par. (5) which read: “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.”
Subsec. (b)(7). Pub. L. 110–315, §401(a)(1)(E), inserted before period at end “or who is subject to an involuntary civil commitment upon completion of a period of incarceration for a forcible or nonforcible sexual offense (as determined in accordance with the Federal Bureau of Investigation's Uniform Crime Reporting Program)”.
Subsec. (b)(8)(D). Pub. L. 110–315, §401(a)(1)(F)(i), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows:
“(D)
Subsec. (b)(8)(F). Pub. L. 110–315, §401(a)(1)(F)(ii), amended subpar. (F) generally. Prior to amendment, subpar. (F) read as follows:
“(F)
Subsec. (c)(5). Pub. L. 110–315, §401(b), added par. (5).
Subsec. (f)(3). Pub. L. 110–315, §103(b)(3), substituted “to the Committee on Appropriations of the Senate, the Committee on Appropriations of the House of Representatives, and the authorizing committees” for “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”.
Subsec. (f)(4). Pub. L. 110–315, §401(c)(1), added par. (4).
2007—Subsec. (a)(1). Pub. L. 110–84, §102(a), substituted “fiscal year 2017” for “fiscal year 2004”.
Subsec. (b)(3) to (7). Pub. L. 110–84, §101(a), redesignated pars. (4) to (8) as (3) to (7), respectively, and struck out former par. (3) which related to the amount of a student's basic grant for any academic year for which an appropriation Act provided a maximum basic grant of more than $2,700.
Subsec. (b)(8). Pub. L. 110–84, §101(a)(2), which directed redesignation of par. (9) as (8), was executed by redesignating the par. (9) enacted by Pub. L. 110–84, §102(b), as (8) to reflect the probable intent of Congress. See below. Former par. (8) redesignated (7).
Subsec. (b)(9). Pub. L. 110–84, §102(b), added par. (9).
1998—Pub. L. 105–244, §401(g)(3)(A), substituted “Federal Pell” for “Basic educational opportunity” in section catchline.
Subsec. (a)(1). Pub. L. 105–244, §401(g)(3)(C), substituted “Federal Pell Grant” for “basic grant”.
Pub. L. 105–244, §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, §401(g)(3)(B), substituted “Grants made” for “Basic grants made”.
Subsec. (b)(1). Pub. L. 105–244, §401(g)(3)(C), substituted “Federal Pell Grant” for “basic grant”.
Subsec. (b)(2)(A). Pub. L. 105–244, §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, §401(g)(3)(C), substituted “Federal Pell Grant” for “basic grant”.
Subsec. (b)(3). Pub. L. 105–244, §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, §401(g)(3)(C), substituted “Federal Pell Grant” for “basic grant” wherever appearing.
Subsec. (b)(6). Pub. L. 105–244, §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, §401(g)(3)(C), substituted “Federal Pell Grant” for “basic grant” wherever appearing.
Subsec. (c)(1). Pub. L. 105–244, §401(g)(3)(D), substituted “Federal Pell Grants” for “basic grants”.
Subsec. (c)(4). Pub. L. 105–244, §401(g)(3)(C), substituted “Federal Pell Grant” for “basic grant” in introductory provisions.
Pub. L. 105–244, §401(e), added par. (4).
Subsec. (d)(1). Pub. L. 105–244, §401(g)(3)(D), substituted “Federal Pell Grants” for “basic grants”.
Subsecs. (d)(2), (f)(1). Pub. L. 105–244, §401(g)(3)(C), substituted “Federal Pell Grant” for “basic grant”.
Subsec. (f)(3). Pub. L. 105–244, §401(g)(4), substituted “Education and the Workforce” for “Education and Labor”.
Subsec. (j). Pub. L. 105–244, §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, §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, §2(k)(1), amended directory language of Pub. L. 102–325, §401(d)(2)(A). See 1992 Amendment note below.
Subsec. (b)(6). Pub. L. 103–208, §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, §2(b)(5), substituted “subtitle D of title V” for “part D of title V”.
1992—Subsec. (a)(1). Pub. L. 102–325, §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, §401(b), substituted “Federal Pell Grants” for “Pell Grants”.
Subsec. (b)(1). Pub. L. 102–325, §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, §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, §401(d)(2)(A), as amended by Pub. L. 103–208, §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, §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, §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, §401(d)(4), substituted “section 1087ll” for “section 1070a–6”.
Subsec. (b)(5). Pub. L. 102–325, §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, §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, §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, §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, §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, §401(f)(2), substituted “expected family contribution” for “eligibility index”.
Subsec. (g). Pub. L. 102–325, §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, §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)”.
Amendment by section 309(a) of Pub. L. 112–74 effective July 1, 2012, see section 309(g) of Pub. L. 112–74, set out as a note under section 1001 of this title.
Pub. L. 112–10, div. B, title VIII, §1860(b), Apr. 15, 2011, 125 Stat. 170, provided that: “The amendment made by subsection (a)(2) [amending this section] shall be effective with respect to the 2011–2012 award year and succeeding award years.”
Pub. L. 111–152, title II, §2101(c), Mar. 30, 2010, 124 Stat. 1073, provided that: “The amendments made by subsections (a) and (b) [amending this section and sections 1070a–14, 1085, 1090, 1092f, and 1161y of this title] shall take effect on July 1, 2010.”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 110–315, title IV, §401(a)(2), Aug. 14, 2008, 122 Stat. 3189, provided that:
“(A)
“(B)
Pub. L. 110–315, title IV, §401(c)(2), Aug. 14, 2008, 122 Stat. 3190, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on July 1, 2009.”
Pub. L. 110–84, §1(c), Sept. 27, 2007, 121 Stat. 784, provided that: “Except as otherwise expressly provided, the amendments made by this Act [enacting subpart 9 of this part and sections 1098e, 1098f, 1099d, 1099e, and 1141 of this title, amending this section and sections 1070a–13, 1077a, 1078, 1078–3, 1085, 1087–1, 1087e, 1087h, 1087dd, 1087ff, 1087oo to 1087tt, and 1087vv of this title, repealing section 1078–9 of this title, and amending provisions set out as a note under section 1078 of this title] shall be effective on October 1, 2007.”
Pub. L. 110–84, title I, §101(b), Sept. 27, 2007, 121 Stat. 784, provided that: “The amendments made by subsection (a) [amending this section] shall be effective with respect to determinations of Federal Pell Grant amounts for award years beginning on or after July 1, 2007.”
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.
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].”
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.
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 (§§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.”
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.
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.”
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, §6(a), Oct. 31, 1998, 112 Stat. 3127.
Provisions limiting the maximum Pell grant that a student may receive were contained in the following appropriation acts:
Pub. L. 112–74, div. F, title III, Dec. 23, 2011, 125 Stat. 1097.
Pub. L. 112–10, div. B, title VIII, §1839(b), Apr. 15, 2011, 125 Stat. 165.
Pub. L. 111–242, §218, as added Pub. L. 112–4, par. (2), Mar. 2, 2011, 125 Stat. 11.
Pub. L. 111–242, §164(b), as added Pub. L. 111–322, title I, §1(a)(2), Dec. 22, 2010, 124 Stat. 3521.
Pub. L. 111–117, div. D, title III, Dec. 16, 2009, 123 Stat. 3267.
Pub. L. 111–8, div. F, title III, Mar. 11, 2009, 123 Stat. 789.
Pub. L. 111–5, div. A, title VIII, Feb. 17, 2009, 123 Stat. 183.
Pub. L. 110–161, div. G, title III, Dec. 26, 2007, 121 Stat. 2195.
Pub. L. 109–289, div. B, title II, §20633(b), as added by Pub. L. 110–5, §2, Feb. 15, 2007, 121 Stat. 36.
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, §1(a)(1) [title III], Dec. 21, 2000, 114 Stat. 2763, 2763A–37.
Pub. L. 106–113, div. B, §1000(a)(4) [title III], Nov. 29, 1999, 113 Stat. 1535, 1501A–251.
Pub. L. 105–277, div. A, §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, §101(e) [title III], Sept. 30, 1996, 110 Stat. 3009–233, 3009–257.
Pub. L. 104–134, title I, §101(d) [title III], Apr. 26, 1996, 110 Stat. 1321–211, 1321–232; renumbered title I, Pub. L. 104–140, §1(a), May 2, 1996, 110 Stat. 1327.
Pub. L. 104–99, title I, §119, Jan. 26, 1996, 110 Stat. 30, prior to repeal by Pub. L. 104–134, title I, §101(d) [title V, §518], Apr. 26, 1996, 110 Stat. 1321–211, 1321–248; renumbered title I, Pub. L. 104–140, §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, §101(h) [title III], Dec. 22, 1987, 101 Stat. 1329–256, 1329–279.
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.
A grant under this section—
(1) for the first or second year of a program of undergraduate education shall be known as an “Academic Competitiveness Grant”; and
(2) for the third, fourth, or fifth 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”.
In this section the term “eligible student” means a student who, for the award year for which the determination of eligibility is made for a grant under this section—
(1) is eligible for a Federal Pell Grant;
(2) is enrolled or accepted for enrollment in an institution of higher education on not less than a half-time basis; and
(3) in the case of a student enrolled or accepted for enrollment in—
(A) the first year of a program of undergraduate education at a two- or four-year degree-granting institution of higher education (including a program of not less than one year for which the institution awards a certificate)—
(i) has successfully completed, after January 1, 2006, a rigorous secondary school program of study that prepares students for college and is recognized as such by the State official designated for such recognition, or with respect to any private or home school, the school official designated for such recognition for such school, consistent with State law, which recognized program shall be reported to the Secretary; and
(ii) has not been previously enrolled in a program of undergraduate education, except as part of a secondary school program of study;
(B) the second year of a program of undergraduate education at a two- or four-year degree-granting institution of higher education (including a program of not less than two years for which the institution awards a certificate)—
(i)(I) successfully completes, after January 1, 2005, but before July 1, 2009, a rigorous secondary school program of study established by a State or local educational agency and recognized as such by the Secretary; or
(II) successfully completes, on or after July 1, 2009, a rigorous secondary school program of study that prepares students for college—
(aa)(AA) that is recognized as such by the official designated for such recognition consistent with State law; and
(BB) about which the designated official has reported to the Secretary, at such time as the Secretary may reasonably require, in order to assist financial aid administrators to determine that the student is an eligible student under this section; or
(bb) that is recognized as such by the Secretary in regulations promulgated to carry out this section, as such regulations were in effect on May 6, 2008; 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 year of such program of undergraduate education;
(C) the third or fourth year of a program of undergraduate education at a four-year degree-granting institution of higher education—
(i) is certified by the institution to be 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 critical foreign language; 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) the third or fourth year of a program of undergraduate education at an institution of higher education (as defined in section 1001(a) of this title), is attending an institution that demonstrates, to the satisfaction of the Secretary, that the institution—
(i) offers a single liberal arts curriculum leading to a baccalaureate degree, under which students are not permitted by the institution to declare a major in a particular subject area, and the student—
(I)(aa) studies, in such years, a subject described in subparagraph (C)(i) that is at least equal to the requirements for an academic major at an institution of higher education that offers a baccalaureate degree in such subject, as certified by an appropriate official from the institution; and
(bb) 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 relevant coursework; or
(II) is required, as part of the student's degree program, to undertake a rigorous course of study in mathematics, biology, chemistry, and physics, which consists of at least—
(aa) 4 years of study in mathematics; and
(bb) 3 years of study in the sciences, with a laboratory component in each of those years; and
(ii) offered such curriculum prior to February 8, 2006; or
(E) the fifth year of a program of undergraduate education that requires 5 full years of coursework, as certified by the appropriate official of the degree-granting institution of higher education, for which a baccalaureate degree is awarded by a degree-granting institution of higher education—
(i) is certified by the institution of higher education to be 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 critical foreign language; 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).
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);
(iii) $4,000 for an eligible student under subparagraph (C) or (D) of subsection (c)(3), for each of the two years described in such subparagraphs; or
(iv) $4,000 for an eligible student under subsection (c)(3)(E).
Notwithstanding subparagraph (A)—
(i) in any case in which a student attends an institution of higher education on less than a full-time basis, the amount of the grant that such student may receive shall be reduced in the same manner as a Federal Pell Grant is reduced under section 1070a(b)(2)(B) of this title;
(ii) 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;
(iii) 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
(iv) if additional amounts are appropriated for any such fiscal year, such reduced amounts shall be increased on the same basis as they were reduced.
The Secretary may not award a grant under this section to any student for any year of a program of undergraduate education for which the student received credit before February 8, 2006.
The Secretary may not award more than one grant to a student described in subsection (c)(3) for each year of study described in such subsection.
An institution of higher education shall make payments of a grant awarded under this section in the same manner, using the same payment periods, as such institution makes payments for Federal Pell Grants under section 1070a of this title.
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.
Funds made available under paragraph (1) for a fiscal year shall remain available for the succeeding fiscal year.
The Secretary shall recognize not less than one rigorous secondary school program of study in each State under subparagraphs (A) and (B) of subsection (c)(3) for the purpose of determining student eligibility under such subsection.
The authority to make grants under this section shall expire at the end of award year 2010–2011.
(Pub. L. 89–329, title IV, §401A, as added Pub. L. 109–171, title VIII, §8003, Feb. 8, 2006, 120 Stat. 155; amended Pub. L. 110–227, §10(a), May 7, 2008, 122 Stat. 748; Pub. L. 110–315, title IV, §402(a)(1), Aug. 14, 2008, 122 Stat. 3190.)
A prior section 1070a–1, Pub. L. 89–329, title IV, §411A, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1312; amended Pub. L. 100–50, §3(b)(1), June 3, 1987, 101 Stat. 337; Pub. L. 100–369, §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, §401(i), July 23, 1992, 106 Stat. 482.
2008—Subsec. (a). Pub. L. 110–227, §10(a)(1), added subsec. (a) and struck out former subsec. (a) which established Academic Competitiveness Grants and Academic Competitiveness Council and required report to Congress.
Subsec. (b)(1). Pub. L. 110–227, §10(a)(2)(A), substituted “year” for “academic year”.
Subsec. (b)(2). Pub. L. 110–227, §10(a)(2), substituted “third, fourth, or fifth” for “third or fourth” and “year” for “academic year”.
Subsec. (c). Pub. L. 110–227, §10(a)(3)(A), in introductory provisions, struck out “full-time” before “student who, for the” and substituted “award” for “academic” and “is made for a grant under this section” for “is made”.
Subsec. (c)(1), (2). Pub. L. 110–227, §10(a)(3)(B), added pars. (1) and (2) and struck out former pars. (1) and (2) which read as follows:
“(1) is a citizen of the United States;
“(2) is eligible for a Federal Pell Grant; and”.
Subsec. (c)(3). Pub. L. 110–227, §10(a)(3)(C)(i), struck out “academic” before “year of” wherever appearing.
Subsec. (c)(3)(A). Pub. L. 110–227, §10(a)(3)(C)(ii)(I), substituted, in introductory provisions, “the first year of a program of undergraduate education at a two- or four-year degree-granting institution of higher education (including a program of not less than one year for which the institution awards a certificate)—” for “the first year of a program of undergraduate education at a two- or four-year degree-granting institution of higher education—”.
Subsec. (c)(3)(A)(i). Pub. L. 110–315, §402(a)(1)(A)(i), added cl. (i) and struck out former cl. (i) which read as follows: “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”. See Effective Date of 2008 Amendment notes below.
Pub. L. 110–227, §10(a)(3)(C)(ii)(II), added cl. (i) and struck out former cl. (i), as amended by Pub. L. 110–315, §402(a)(1)(A)(i), which read as follows:
“(I) successfully completes, after January 1, 2006, but before July 1, 2009, a rigorous secondary school program of study established by a State or local educational agency and recognized as such by the Secretary; or
“(II) successfully completes, on or after July 1, 2009, a rigorous secondary school program of study that prepares students for college—
“(aa)(AA) that is recognized as such by the official designated for such recognition consistent with State law; and
“(BB) about which the designated official has reported to the Secretary, at such time as the Secretary may reasonably require, in order to assist financial aid administrators to determine that the student is an eligible student under this section; or
“(bb) that is recognized as such by the Secretary in regulations promulgated to carry out this section, as such regulations were in effect on May 6, 2008; and”.
See Effective Date of 2008 Amendment notes below.
Subsec. (c)(3)(A)(ii). Pub. L. 110–227, §10(a)(3)(C)(ii)(III), inserted “, except as part of a secondary school program of study” before semicolon.
Subsec. (c)(3)(B). Pub. L. 110–227, §10(a)(3)(C)(iii)(I), in introductory provisions, substituted “year of a program of undergraduate education at a two- or four-year degree-granting institution of higher education (including a program of not less than two years for which the institution awards a certificate)” for “year of a program of undergraduate education at a two- or four-year degree-granting institution of higher education”.
Subsec. (c)(3)(B)(i). Pub. L. 110–315, §402(a)(1)(A)(ii), added cl. (i) and struck out former cl. (i) which read as follows: “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”.
Subsec. (c)(3)(C)(i). Pub. L. 110–227, §10(a)(3)(C)(iv)(I), inserted “certified by the institution to be” after “is” in introductory provisions.
Subsec. (c)(3)(C)(i)(II). Pub. L. 110–227, §10(a)(3)(C)(iv)(II), added subcl. (II) and struck out former subcl. (II) which read as follows: “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”.
Subsec. (c)(3)(D), (E). Pub. L. 110–227, §10(a)(3)(C)(iii)(II), (iv)(III), (v), added subpars. (D) and (E).
Subsec. (d)(1)(A). Pub. L. 110–227, §10(a)(4)(A)(i), inserted heading, substituted “subparagraph (C) or (D) of subsection (c)(3), for each of the two years described in such subparagraphs; or” for “subsection (c)(3)(C).” in cl. (iii), and added cl. (iv).
Subsec. (d)(1)(B). Pub. L. 110–227, §10(a)(4)(A)(ii), inserted heading, added cl. (i), and redesignated former cls. (i) to (iii) as (ii) to (iv), respectively.
Subsec. (d)(2), (3). Pub. L. 110–227, §10(a)(4)(B), (C), added pars. (2) and (3) and struck out former par. (2). Prior to amendment, text read as follows: “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).”
Subsec. (e)(2). Pub. L. 110–315, §402(a)(1)(B), amended par. (2) generally. Prior to amendment, text read as follows: “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.” See Effective Date of 2008 Amendment notes below.
Pub. L. 110–227, §10(a)(5), added par. (2) and struck out former par. (2), as amended by Pub. L. 110–315, §402(a)(1)(B). Prior to amendment, text read as follows: “The amounts made available by paragraph (1) for any fiscal year shall be available from October 1 of that fiscal year and remain available through September 30 of the succeeding fiscal year.” See Effective Date of 2008 Amendment notes below.
Subsec. (f). Pub. L. 110–227, §10(a)(6), substituted “not less than one” for “at least one” and “subparagraphs (A) and (B) of subsection (c)(3)” for “subsection (c)(3)(A) and (B)”.
Subsec. (g). Pub. L. 110–227, §10(a)(7), substituted “award” for “academic”.
Pub. L. 110–315, title IV, §402(a)(2), Aug. 14, 2008, 122 Stat. 3191, provided that: “The amendment made by paragraph (1)(B) [amending this section] shall take effect on October 1, 2008.”
Pub. L. 110–227, §10(b), May 7, 2008, 122 Stat. 752, as amended by Pub. L. 110–315, title IV, §402(a)(3), Aug. 14, 2008, 122 Stat. 3191, provided that: “The amendments made by subsection (a) [amending this section] shall take effect on July 1, 2009.”
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.
Section 1070a–2, Pub. L. 89–329, title IV, §411B, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1313; amended Pub. L. 100–50, §3(b)(2), (c)–(f)(1), (4), (5), (g), June 3, 1987, 101 Stat. 337, 338; Pub. L. 102–54, §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, §411C, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1316; amended Pub. L. 100–50, §3(b)(3), (c)(1), (f)(2), (4), (5), (g), (h)(2), June 3, 1987, 101 Stat. 337, 338; Pub. L. 100–369, §7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102–54, §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, §411D, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1319; amended Pub. L. 100–50, §3(b)(4), (c)(1), (f)(3), (4), (g), June 3, 1987, 101 Stat. 337, 338; Pub. L. 100–369, §7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102–54, §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, §411E, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1322, related to regulations and updated tables.
Section 1070a–6, Pub. L. 89–329, title IV, §411F, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1323; amended Pub. L. 100–50, §3(h)(1), (i)–(m), June 3, 1987, 101 Stat. 338, 339; Pub. L. 100–369, §7(a), (c), July 18, 1988, 102 Stat. 836, 837; Pub. L. 101–610, title I, §185(1), (2), Nov. 16, 1990, 104 Stat. 3167, related to definitions and determinations.
Pub. L. 102–325, title IV, §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.
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.
For the purposes described in subsection (a) of this section, the Secretary is authorized, without regard to section 6101 of title 41, to make grants to, and contracts with, institutions of higher education, public and private agencies and organizations, including community-based organizations with experience in serving disadvantaged youth, combinations of such institutions, agencies and organizations, and, as appropriate to the purposes of the program, secondary schools, for planning, developing, or carrying out one or more of the services assisted under this division.
Grants or contracts made under this division shall be awarded for a period of 5 years, except that—
(A) in order to synchronize the awarding of grants for programs under this division, the Secretary may, under such terms as are consistent with the purposes of this division, provide a one-time, limited extension of the length of such an award;
(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.
Unless the institution or agency requests a smaller amount, an individual grant authorized under this division shall be awarded in an amount that is not less than $200,000, except that an individual grant authorized under section 1070a–17 of this title shall be awarded in an amount that is not less than $170,000.
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.
In making grants under this division, the Secretary shall consider each applicant's prior experience of high quality service delivery, as determined under subsection (f), 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.
In making grants under this division, the Secretary shall consider the number, percentages, and needs of eligible participants in the area, institution of higher education, or secondary school to be served to aid such participants in preparing for, enrolling in, or succeeding in postsecondary education, as appropriate to the particular program for which the eligible entity is applying.
(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 shall not 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.
(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).
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 different campuses.
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. The Secretary shall, as appropriate, require each applicant for funds under the programs authorized by this division to identify and make available services under such program, including mentoring, tutoring, and other services provided by such program, to foster care youth (including youth in foster care and youth who have left foster care after reaching age 13) or to homeless children and youths as defined in section 11434a of title 42.
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.
Not later than 180 days after August 14, 2008, the Secretary shall issue nonregulatory guidance regarding the rights and responsibilities of applicants with respect to the application and evaluation process for programs and projects assisted under this division, including applicant access to peer review comments. The guidance shall describe the procedures for the submission, processing, and scoring of applications for grants under this division, including—
(i) the responsibility of applicants to submit materials in a timely manner and in accordance with the processes established by the Secretary under the authority of the General Education Provisions Act [20 U.S.C. 1221 et seq.];
(ii) steps the Secretary will take to ensure that the materials submitted by applicants are processed in a proper and timely manner;
(iii) steps the Secretary will take to ensure that prior experience points for high quality service delivery are awarded in an accurate and transparent manner;
(iv) steps the Secretary will take to ensure the quality and integrity of the peer review process, including assurances that peer reviewers will consider applications for grants under this division in a thorough and complete manner consistent with applicable Federal law; and
(v) steps the Secretary will take to ensure that the final score of an application, including prior experience points for high quality service delivery and points awarded through the peer review process, is determined in an accurate and transparent manner.
Not later than 45 days before the date of the commencement of each competition for a grant under this division that is held after the expiration of the 180-day period described in subparagraph (A), the Secretary shall update and publish the guidance described in such subparagraph.
With respect to any competition for a grant under this division, an applicant may request a review by the Secretary if the applicant—
(I) has evidence of a specific technical, administrative, or scoring error made by the Department, an agent of the Department, or a peer reviewer, with respect to the scoring or processing of a submitted application; and
(II) has otherwise met all of the requirements for submission of the application.
In the case of evidence of a technical or administrative error listed in clause (i)(I), the Secretary shall review such evidence and provide a timely response to the applicant. If the Secretary determines that a technical or administrative error was made by the Department or an agent of the Department, the application of the applicant shall be reconsidered in the peer review process for the applicable grant competition.
In the case of evidence of a scoring error listed in clause (i)(I), when the error relates to either prior experience points for high quality service delivery or to the final score of an application, the Secretary shall—
(I) review such evidence and provide a timely response to the applicant; and
(II) if the Secretary determines that a scoring error was made by the Department or a peer reviewer, adjust the prior experience points or final score of the application appropriately and quickly, so as not to interfere with the timely awarding of grants for the applicable grant competition.
In the case of a peer review process error listed in clause (i)(I), if the Secretary determines that points were withheld for criteria not required in Federal statute, regulation, or guidance governing a program assisted under this division or the application for a grant for such program, or determines that information pertaining to selection criteria was wrongly determined to be missing from an application by a peer reviewer, then the Secretary shall refer the application to a secondary review panel.
The secondary review panel described in subclause (I) shall conduct a secondary review in a timely fashion, and the score resulting from the secondary review shall replace the score from the initial peer review.
The secondary review panel shall be composed of reviewers each of whom—
(aa) did not review the application in the original peer review;
(bb) is a member of the cohort of peer reviewers for the grant program that is the subject of such secondary review; and
(cc) to extent practicable, has conducted peer reviews in not less than two previous competitions for the grant program that is the subject of such secondary review.
The final peer review score of an application subject to a secondary review under this clause shall be adjusted appropriately and quickly using the score awarded by the secondary review panel, so as not to interfere with the timely awarding of grants for the applicable grant competition.
To qualify for a secondary review under this clause, an applicant shall have evidence of a scoring error and demonstrate that—
(aa) points were withheld for criteria not required in statute, regulation, or guidance governing the Federal TRIO programs or the application for a grant for such programs; or
(bb) information pertaining to selection criteria was wrongly determined to be missing from the application.
A determination by the Secretary under clause (i), (ii), or (iii) shall not be reviewable by any officer or employee of the Department.
The score awarded by a secondary review panel under clause (iv) shall not be reviewable by any officer or employee of the Department other than the Secretary.
To the extent feasible based on the availability of appropriations, the Secretary shall fund applications with scores that are adjusted upward under clauses (ii), (iii), and (iv) to equal or exceed the minimum cut off score for the applicable grant competition.
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.
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.
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.
The Secretary may contract with eligible entities to conduct the outreach activities described in this subsection.
(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 (h)(4) 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 (h)(4) 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.
(3) Notwithstanding this subsection and subsection (h)(4), individuals who are foster care youth (including youth in foster care and youth who have left foster care after reaching age 13), or homeless children and youths as defined in section 11434a of title 42, shall be eligible to participate in programs under sections 1070a–12, 1070a–13, 1070a–14, and 1070a–16 of this title.
For competitions for grants under this division that begin on or after January 1, 2009, the Secretary shall determine an eligible entity's prior experience of high quality service delivery, as required under subsection (c)(2), based on the outcome criteria described in paragraphs (2) and (3).
The outcome criteria under this subsection shall be disaggregated by low-income students, first generation college students, and individuals with disabilities, in the schools and institutions of higher education served by the program to be evaluated.
The outcome criteria under this subsection shall measure, annually and for longer periods, the quality and effectiveness of programs authorized under this division and shall include the following:
(A) For programs authorized under section 1070a–12 of this title, the extent to which the eligible entity met or exceeded the entity's objectives established in the entity's application for such program regarding—
(i) the delivery of service to a total number of students served by the program;
(ii) the continued secondary school enrollment of such students;
(iii) the graduation of such students from secondary school with a regular secondary school diploma in the standard number of years;
(iv) the completion by such students of a rigorous secondary school program of study that will make such students eligible for programs such as the Academic Competitiveness Grants Program;
(v) the enrollment of such students in an institution of higher education; and
(vi) to the extent practicable, the postsecondary education completion of such students.
(B) For programs authorized under section 1070a–13 of this title, the extent to which the eligible entity met or exceeded the entity's objectives for such program regarding—
(i) the delivery of service to a total number of students served by the program, as agreed upon by the entity and the Secretary for the period;
(ii) such students’ school performance, as measured by the grade point average, or its equivalent;
(iii) such students’ academic performance, as measured by standardized tests, including tests required by the students’ State;
(iv) the retention in, and graduation from, secondary school of such students;
(v) the completion by such students of a rigorous secondary school program of study that will make such students eligible for programs such as the Academic Competitiveness Grants Program;
(vi) the enrollment of such students in an institution of higher education; and
(vii) to the extent practicable, the postsecondary education completion of such students.
(C) For programs authorized under section 1070a–14 of this title—
(i) the extent to which the eligible entity met or exceeded the entity's objectives regarding the retention in postsecondary education of the students served by the program;
(ii)(I) in the case of an entity that is an institution of higher education offering a baccalaureate degree, the extent to which the entity met or exceeded the entity's objectives regarding the percentage of such students’ completion of the degree programs in which such students were enrolled; or
(II) in the case of an entity that is an institution of higher education that does not offer a baccalaureate degree, the extent to which such students met or exceeded the entity's objectives regarding—
(aa) the completion of a degree or certificate by such students; and
(bb) the transfer of such students to institutions of higher education that offer baccalaureate degrees;
(iii) the extent to which the entity met or exceeded the entity's objectives regarding the delivery of service to a total number of students, as agreed upon by the entity and the Secretary for the period; and
(iv) the extent to which the entity met or exceeded the entity's objectives regarding the students served under the program who remain in good academic standing.
(D) For programs authorized under section 1070a–15 of this title, the extent to which the entity met or exceeded the entity's objectives for such program regarding—
(i) the delivery of service to a total number of students served by the program, as agreed upon by the entity and the Secretary for the period;
(ii) the provision of appropriate scholarly and research activities for the students served by the program;
(iii) the acceptance and enrollment of such students in graduate programs; and
(iv) the continued enrollment of such students in graduate study and the attainment of doctoral degrees by former program participants.
(E) For programs authorized under section 1070a–16 of this title, the extent to which the entity met or exceeded the entity's objectives for such program regarding—
(i) the enrollment of students without a secondary school diploma or its recognized equivalent, who were served by the program, in programs leading to such diploma or equivalent;
(ii) the enrollment of secondary school graduates who were served by the program in programs of postsecondary education;
(iii) the delivery of service to a total number of students served by the program, as agreed upon by the entity and the Secretary for the period; and
(iv) the provision of assistance to students served by the program in completing financial aid applications and college admission applications.
In order to determine the extent to which each outcome criterion described in paragraph (2) or (3) is met or exceeded, the Secretary shall compare the agreed upon target for the criterion, as established in the eligible entity's application approved by the Secretary, with the results for the criterion, measured as of the last day of the applicable time period for the determination for the outcome criterion.
For the purpose of making grants and contracts under this division, there are authorized to be appropriated $900,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years. Of the amount appropriated under this division, the Secretary may use no more than ½ 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.
For the purpose of this division:
The term “different campus” means a site of an institution of higher education that—
(A) is geographically apart from the main campus of the institution;
(B) is permanent in nature; and
(C) offers courses in educational programs leading to a degree, certificate, or other recognized educational credential.
The term “different population” means a group of individuals that an eligible entity desires to serve through an application for a grant under this division, and that—
(A) is separate and distinct from any other population that the entity has applied for a grant under this division to serve; or
(B) while sharing some of the same needs as another population that the eligible entity has applied for a grant under this division to serve, has distinct needs for specialized services.
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.
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.
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 and was discharged or released therefrom under conditions other than dishonorable;
(B) served on active duty and was discharged or released therefrom because of a service connected disability;
(C) was a member of a reserve component of the Armed Forces called to active duty for a period of more than 30 days; or
(D) was a member of a reserve component of the Armed Forces who served on active duty in support of a contingency operation (as that term is defined in section 101(a)(13) of title 10) on or after September 11, 2001.
The Secretary may waive the service requirements in subparagraph (A), (B), or (C) of paragraph (5) if the Secretary determines the application of the service requirements to a veteran will defeat the purpose of a program under this division.
(Pub. L. 89–329, title IV, §402A, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 482; amended Pub. L. 103–208, §2(b)(6)–(9), Dec. 20, 1993, 107 Stat. 2458; Pub. L. 105–244, title I, §102(b)(1), title IV, §402(a), Oct. 7, 1998, 112 Stat. 1622, 1652; Pub. L. 110–315, title IV, §403(a), Aug. 14, 2008, 122 Stat. 3191; Pub. L. 111–39, title IV, §401(a)(4), July 1, 2009, 123 Stat. 1938.)
The General Education Provisions Act, referred to in subsec. (c)(8)(A)(i), is title IV of Pub. L. 90–247, Jan. 2, 1968, 81 Stat. 814, which is classified generally to chapter 31 (§1221 et seq.) of this title. For complete classification of this Act to the Code, see section 1221 of this title and Tables.
The Higher Education Amendments of 1992, referred to in subsec. (g), 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.
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.”
In subsec. (b)(1), “section 6101 of title 41” substituted for “section 3709 of the Revised Statutes (41 U.S.C. 5)” on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
2009—Subsec. (b)(1). Pub. L. 111–39, §401(a)(4)(A), substituted “organizations, including” for “organizations including”.
Subsec. (c)(8)(C)(iv)(I). Pub. L. 111–39, §401(a)(4)(B), inserted “to be” after “determined”.
2008—Subsec. (b)(1). Pub. L. 110–315, §403(a)(1)(A), inserted “including community-based organizations with experience in serving disadvantaged youth” after “private agencies and organizations” and substituted “, as appropriate to the purposes of the program” for “in exceptional circumstances”.
Subsec. (b)(2). Pub. L. 110–315, §403(a)(1)(B)(i), substituted “5 years” for “4 years” in introductory provisions.
Subsec. (b)(2)(A). Pub. L. 110–315, §403(a)(1)(B)(ii), amended subpar. (A) generally. Prior to amendment subpar. (A) read as follows: “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. (b)(3). Pub. L. 110–315, §403(a)(1)(C), added par. (3) and struck out former par. (3). Prior to amendment, text read as follows: “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.”
Subsec. (c)(2). Pub. L. 110–315, §403(a)(2)(A), inserted par. heading, designated former par. heading as subpar. (A) heading and existing provisions as subpar. (A), substituted “high quality service delivery, as determined under subsection (f),” for “service delivery”, and added subpar. (B).
Subsec. (c)(3)(B). Pub. L. 110–315, §403(a)(2)(B), substituted “shall not” for “is not required to”.
Subsec. (c)(5). Pub. L. 110–315, §403(a)(2)(C), substituted “different campuses” for “campuses”.
Subsec. (c)(6). Pub. L. 110–315, §403(a)(2)(D), inserted at end “The Secretary shall, as appropriate, require each applicant for funds under the programs authorized by this division to identify and make available services under such program, including mentoring, tutoring, and other services provided by such program, to foster care youth (including youth in foster care and youth who have left foster care after reaching age 13) or to homeless children and youths as defined in section 11434a of title 42.”
Subsec. (c)(8). Pub. L. 110–315, §403(a)(2)(E), added par. (8).
Subsec. (e)(1), (2). Pub. L. 110–315, §403(a)(3)(A), substituted “subsection (h)(4)” for “subsection (g)(2)” in introductory provisions.
Subsec. (e)(3). Pub. L. 110–315, §403(a)(3)(B), added par. (3).
Subsec. (f). Pub. L. 110–315, §403(a)(5), added subsec. (f). Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 110–315, §403(a)(6), substituted “$900,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years” for “$700,000,000 for fiscal year 1999, and such sums as may be necessary for each of the 4 succeeding fiscal years” and struck out last sentence which read as follows: “The Secretary shall report to Congress by October 1, 1994, on the use of these funds.”
Pub. L. 110–315, §403(a)(4), redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h).
Subsec. (h). Pub. L. 110–315, §403(a)(7)(A), (B), added pars. (1) and (2) and redesignated former pars. (1) to (4) as (3) to (6), respectively.
Pub. L. 110–315, §403(a)(4), redesignated subsec. (g) as (h).
Subsec. (h)(5)(A). Pub. L. 110–315, §403(a)(7)(C)(i), struck out “, any part of which occurred after January 31, 1955,” after “more than 180 days” and “or” after semicolon.
Subsec. (h)(5)(B). Pub. L. 110–315, §403(a)(7)(C)(ii), struck out “after January 31, 1955,” after “active duty” and substituted a semicolon for period at end.
Subsec. (h)(5)(C), (D). Pub. L. 110–315, §403(a)(7)(C)(iii), added subpars. (C) and (D).
Subsec. (h)(6). Pub. L. 110–315, §403(a)(7)(D), substituted “subparagraph (A), (B), or (C) of paragraph (5)” for “subparagraph (A) or (B) of paragraph (3)”.
1998—Subsec. (b)(2)(C). Pub. L. 105–244, §402(a)(1), added subpar. (C).
Subsec. (b)(3). Pub. L. 105–244, §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, §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, §102(b)(1), substituted “section 1011g” for “section 1145d–1”.
Subsec. (f). Pub. L. 105–244, §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, §402(a)(5), added par. (4).
1993—Subsec. (b)(2). Pub. L. 103–208, §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, §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, §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, §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.”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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 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.
Pub. L. 105–244, title VIII, §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, §1011(2), Jan. 8, 2002, 115 Stat. 1986.
Similar provisions were contained in Pub. L. 102–325, title XV, §1545, July 23, 1992, 106 Stat. 837, which was repealed by Pub. L. 107–110, title X, §1011(1), Jan. 8, 2002, 115 Stat. 1986.
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, and facilitate the application for, 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 to enter or reenter, and complete such programs.
Any project assisted under this section shall provide—
(1) connections to high quality academic tutoring services, to enable students to complete secondary or postsecondary courses;
(2) advice and assistance in secondary course selection and, if applicable, initial postsecondary course selection;
(3) assistance in preparing for college entrance examinations and completing college admission applications;
(4)(A) information on the full range of Federal student financial aid programs and benefits (including Federal Pell Grant awards and loan forgiveness) and resources for locating public and private scholarships; and
(B) assistance in completing financial aid applications, including the Free Application for Federal Student Aid described in section 1090(a) of this title;
(5) guidance on and assistance in—
(A) secondary school reentry;
(B) alternative education programs for secondary school dropouts that lead to the receipt of a regular secondary school diploma;
(C) entry into general educational development (GED) programs; or
(D) postsecondary education; and
(6) connections to education or counseling services designed to improve the financial literacy and economic literacy of students or the students’ parents, including financial planning for postsecondary education.
Any project assisted under this section may provide services such as—
(1) academic tutoring, which may include instruction in reading, writing, study skills, mathematics, science, and other subjects;
(2) personal and career counseling or activities;
(3) information and activities designed to acquaint youth with the range of career options available to the youth;
(4) exposure to the campuses of institutions of higher education, as well as cultural events, academic programs, and other sites or activities not usually available to disadvantaged youth;
(5) workshops and counseling for families of students served;
(6) 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
(7) programs and activities as described in subsection (b) or paragraphs (1) through (6) of this subsection that are specially designed for students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 11434a of title 42), students who are in foster care or are aging out of the foster care system, or other disconnected students.
In approving applications for projects under this section 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.
(Pub. L. 89–329, title IV, §402B, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 486; amended Pub. L. 105–244, title IV, §402(b), Oct. 7, 1998, 112 Stat. 1654; Pub. L. 110–315, title IV, §403(b), Aug. 14, 2008, 122 Stat. 3198.)
2008—Subsec. (a)(2). Pub. L. 110–315, §403(b)(1)(A), inserted “, and facilitate the application for,” after “the availability of”.
Subsec. (a)(3). Pub. L. 110–315, §403(b)(1)(B), substituted “to enter or reenter, and complete” for “, but who have the ability to complete such programs, to reenter”.
Subsecs. (b), (c). Pub. L. 110–315, §403(b)(3), added subsecs. (b) and (c) and struck out former subsec. (b) which related to permissible services. Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 110–315, §403(b)(2), (4), redesignated subsec. (c) as (d) and substituted “projects under this section” for “talent search projects under this division” in introductory provisions.
1998—Subsec. (b)(4). Pub. L. 105–244, §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, §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, §402(b)(3), substituted “families” for “parents”.
Subsec. (b)(9). Pub. L. 105–244, §402(b)(4), inserted “or counselors” after “teachers”.
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.
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.
Any project assisted under this section shall provide—
(1) academic tutoring to enable students to complete secondary or postsecondary courses, which may include instruction in reading, writing, study skills, mathematics, science, and other subjects;
(2) advice and assistance in secondary and postsecondary course selection;
(3) assistance in preparing for college entrance examinations and completing college admission applications;
(4)(A) information on the full range of Federal student financial aid programs and benefits (including Federal Pell Grant awards and loan forgiveness) and resources for locating public and private scholarships; and
(B) assistance in completing financial aid applications, including the Free Application for Federal Student Aid described in section 1090(a) of this title;
(5) guidance on and assistance in—
(A) secondary school reentry;
(B) alternative education programs for secondary school dropouts that lead to the receipt of a regular secondary school diploma;
(C) entry into general educational development (GED) programs; or
(D) postsecondary education; and
(6) education or counseling services designed to improve the financial literacy and economic literacy of students or the students’ parents, including financial planning for postsecondary education.
Any project assisted under this section 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.
Any project assisted under this section may provide such services as—
(1) exposure to cultural events, academic programs, and other activities not usually available to disadvantaged youth;
(2) information, activities, and instruction designed to acquaint youth participating in the project with the range of career options available to the youth;
(3) on-campus residential programs;
(4) mentoring programs involving elementary school or secondary school teachers or counselors, faculty members at institutions of higher education, students, or any combination of such persons;
(5) work-study positions where youth participating in the project are exposed to careers requiring a postsecondary degree;
(6) special services, including mathematics and science preparation, to enable veterans to make the transition to postsecondary education; and
(7) programs and activities as described in subsection (b), subsection (c), or paragraphs (1) through (6) of this subsection that are specially designed for students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 11434a of title 42), students who are in foster care or are aging out of the foster care system, or other disconnected students.
In approving applications for projects under this section 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 low-income individuals, first generation college students, or students who have a high risk for academic failure;
(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;
(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; and
(5) require an assurance that no student will be denied participation in a project assisted under this section because the student will enter the project after the 9th grade.
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 the summer school recess, for a period not to exceed three months, except that youth participating in a work-study position under subsection (d)(5) of this section may be paid a stipend of $300 per month during the summer school recess, for a period not to exceed three months. 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.
There are authorized to be appropriated, and there are appropriated to the Secretary, from funds not otherwise appropriated, $57,000,000 for each of the fiscal years 2008 through 2011 to carry out paragraph (2), except that any amounts that remain unexpended for such purpose for each of such fiscal years may be available for technical assistance and administration costs for the Upward Bound program. The authority to award grants under this subsection shall expire at the end of fiscal year 2011.
The amounts made available by paragraph (1) shall be available to provide assistance to all Upward Bound projects that did not receive assistance in fiscal year 2007 and that have a grant score above 70. Such assistance shall be made available in the form of 4-year grants.
Upon enactment of this subsection and except as otherwise expressly provided by amendment to this section, the Secretary shall not continue, implement, or enforce the absolute priority for the Upward Bound Program published by the Department of Education in the Federal Register on September 22, 2006 (71 Fed. Reg. 55447 et seq.). This subsection shall not be applied retroactively. In implementing this subsection, the Department shall allow the programs and participants chosen in the grant cycle to which the priority applies to continue their grants and participation without a further recompetition. The entities shall not be required to apply the absolute priority conditions or restrictions to future participants.
(Pub. L. 89–329, title IV, §402C, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 487; amended Pub. L. 103–208, §2(b)(10), Dec. 20, 1993, 107 Stat. 2459; Pub. L. 105–244, title IV, §402(c), Oct. 7, 1998, 112 Stat. 1654; Pub. L. 110–84, title I, §103, Sept. 27, 2007, 121 Stat. 786; Pub. L. 110–315, title IV, §403(c), Aug. 14, 2008, 122 Stat. 3199.)
2008—Subsec. (b). Pub. L. 110–315, §403(c)(1), added subsec. (b) and struck out former subsec. (b) which related to permissible services.
Subsec. (c). Pub. L. 110–315, §403(c)(2), substituted “Additional required services for multiple-year grant recipients” for “Required services” in heading and “project assisted under this section” for “upward bound project assisted under this division” in text.
Subsec. (d). Pub. L. 110–315, §403(c)(4), added subsec. (d). Former subsec. (d) redesignated (e).
Subsec. (e). Pub. L. 110–315, §403(c)(3), (5)(A), redesignated subsec. (d) as (e) and substituted “projects under this section” for “upward bound projects under this division” in introductory provisions. Former subsec. (e) redesignated (f).
Subsec. (e)(2). Pub. L. 110–315, §403(c)(5)(B), substituted “low-income individuals, first generation college students, or students who have a high risk for academic failure;” for “either low-income individuals or first generation college students;”.
Subsec. (e)(5). Pub. L. 110–315, §403(c)(5)(C)–(E), added par. (5).
Subsec. (f). Pub. L. 110–315, §403(c)(3), (6), redesignated subsec. (e) as (f) and substituted “during the summer school recess, for a period not to exceed three months” for “during June, July, and August” in two places, and “subsection (d)(5)” for “subsection (b)(10)”. Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 110–315, §403(c)(3), redesignated subsec. (f) as (g).
Subsec. (h). Pub. L. 110–315, §403(c)(7), added subsec. (h).
2007—Subsec. (f). Pub. L. 110–84 added subsec. (f).
1998—Subsec. (b)(2). Pub. L. 105–244, §402(c)(1)(A), substituted “counseling and workshops” for “personal counseling”.
Subsec. (b)(9). Pub. L. 105–244, §402(c)(1)(B), inserted “or counselors” after “teachers” and struck out “and” after semicolon.
Subsec. (b)(10), (11). Pub. L. 105–244, §402(c)(1)(D), added pars. (10) and (11). Former par. (10) redesignated (12).
Subsec. (b)(12). Pub. L. 105–244, §402(c)(1)(E), substituted “(11)” for “(9)”.
Pub. L. 105–244, §402(c)(1)(C), redesignated par. (10) as (12).
Subsec. (e). Pub. L. 105–244, §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”.
Amendment by Pub. L. 110–84 effective Oct. 1, 2007, see section 1(c) of Pub. L. 110–84, set out as a note under section 1070a of this title.
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. 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.
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;
(3) to foster an institutional climate supportive of the success of students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 11434a of title 42), students who are in foster care or are aging out of the foster care system, or other disconnected students; and
(4) to improve the financial literacy and economic literacy of students, including—
(A) basic personal income, household money management, and financial planning skills; and
(B) basic economic decisionmaking skills.
A project assisted under this section shall provide—
(1) academic tutoring, directly or through other services provided by the institution, to enable students to complete postsecondary courses, which may include instruction in reading, writing, study skills, mathematics, science, and other subjects;
(2) advice and assistance in postsecondary course selection;
(3)(A) information on both the full range of Federal student financial aid programs and benefits (including Federal Pell Grant awards and loan forgiveness) and resources for locating public and private scholarships; and
(B) assistance in completing financial aid applications, including the Free Application for Federal Student Aid described in section 1090(a) of this title;
(4) education or counseling services designed to improve the financial literacy and economic literacy of students, including financial planning for postsecondary education;
(5) activities designed to assist students participating in the project in applying for admission to, and obtaining financial assistance for enrollment in, graduate and professional programs; and
(6) activities designed to assist students enrolled in two-year institutions of higher education in applying for admission to, and obtaining financial assistance for enrollment in, a four-year program of postsecondary education.
A project assisted under this section may provide services such as—
(1) individualized counseling for personal, career, and academic matters provided by assigned counselors;
(2) information, activities, and instruction designed to acquaint students participating in the project with the range of career options available to the students;
(3) exposure to cultural events and academic programs not usually available to disadvantaged students;
(4) mentoring programs involving faculty or upper class students, or a combination thereof;
(5) securing temporary housing during breaks in the academic year for—
(A) students who are homeless children and youths (as such term is defined in section 11434a of title 42) or were formerly homeless children and youths; and
(B) students who are in foster care or are aging out of the foster care system; and
(6) programs and activities as described in subsection (b) or paragraphs (1) through (4) of this subsection that are specially designed for students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 11434a of title 42), students who are in foster care or are aging out of the foster care system, or other disconnected students.
A recipient of a grant that undertakes any of the permissible services identified in subsection (c) may, in addition, use such funds to provide grant aid to students. A grant provided under this paragraph shall not exceed the Federal Pell Grant amount, determined under section 1070a(b)(2)(A) of this title, for which a student is eligible, or be less than the minimum Federal Pell Grant amount described in section 1070a(b)(4) of this title, 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.
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.
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.
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.
In no event may a recipient use more than 20 percent of the funds received under this section for grant aid.
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.
In approving applications for projects 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—
(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.
(Pub. L. 89–329, title IV, §402D, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 488; amended Pub. L. 103–208, §2(b)(11), Dec. 20, 1993, 107 Stat. 2459; Pub. L. 105–244, title IV, §402(d), Oct. 7, 1998, 112 Stat. 1655; Pub. L. 106–554, §1(a)(1) [title III, §317(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–48; Pub. L. 110–315, title IV, §403(d), Aug. 14, 2008, 122 Stat. 3201; Pub. L. 111–152, title II, §2101(b)(2), Mar. 30, 2010, 124 Stat. 1073.)
2010—Subsec. (d)(1). Pub. L. 111–152 substituted “exceed the Federal Pell Grant amount, determined under section 1070a(b)(2)(A) of this title, for which a student is eligible, or be less than the minimum Federal Pell Grant amount described in section 1070a(b)(4) of this title, for” for “exceed the maximum appropriated Pell Grant or, be less than the minimum appropriated Pell Grant, for”.
2008—Subsec. (a)(3), (4). Pub. L. 110–315, §403(d)(1), added pars. (3) and (4) and struck out former par. (3) which read as follows: “to foster an institutional climate supportive of the success of low-income and first generation college students and individuals with disabilities.”
Subsec. (b). Pub. L. 110–315, §403(d)(3), added subsec. (b) and struck out former subsec. (b) which related to permissible services.
Subsecs. (c), (d). Pub. L. 110–315, §403(d)(2), (3), added subsec. (c) and redesignated former subsec. (c) as (d). Former subsec. (d) redesignated (e).
Subsec. (d)(1). Pub. L. 110–315, §403(d)(4), substituted “subsection (c)” for “subsection (b)”.
Subsec. (e). Pub. L. 110–315, §403(d)(2), (5), redesignated subsec. (d) as (e) and substituted “projects under this section” for “student support services projects under this division” in introductory provisions.
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”.
Amendment by Pub. L. 111–152 effective July 1, 2010, see section 2101(c) of Pub. L. 111–152, set out as a note under section 1070a of this title.
Pub. L. 106–554, §1(a)(1) [title III, §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].”
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. 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.
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.
A project assisted under this section shall provide—
(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; and
(6) activities designed to assist students participating in the project in securing admission to and financial assistance for enrollment in graduate programs.
A project assisted under this section may provide services such as—
(1) education or counseling services designed to improve the financial literacy and economic literacy of students, including financial planning for postsecondary education;
(2) mentoring programs involving faculty members at institutions of higher education, students, or any combination of such persons; and
(3) exposure to cultural events and academic programs not usually available to disadvantaged students.
In approving applications for 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, including—
(A) Alaska Natives, as defined in section 7546 of this title;
(B) Native Hawaiians, as defined in section 7517 of this title; and
(C) Native American Pacific Islanders, as defined in section 1059g of this title;
(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.
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.
Students participating in research under a project under this section 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.
From amounts appropriated pursuant to the authority of section 1070a–11(g) 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 2009 through 2014.
(Pub. L. 89–329, title IV, §402E, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 489; amended Pub. L. 105–244, title IV, §402(e), Oct. 7, 1998, 112 Stat. 1655; Pub. L. 110–315, title IV, §403(e), Aug. 14, 2008, 122 Stat. 3203; Pub. L. 111–39, title IV, §401(a)(5), July 1, 2009, 123 Stat. 1938.)
2009—Subsec. (d)(2)(C). Pub. L. 111–39 struck out period before semicolon at end.
2008—Subsec. (b). Pub. L. 110–315, §403(e)(1)(A), (B), inserted “Required” before “services” in heading and, in introductory provisions, substituted “A project assisted under this section shall provide—” for “A postbaccalaureate achievement project assisted under this section may provide services such as—”.
Subsec. (b)(5) to (8). Pub. L. 110–315, §403(e)(1)(C)–(E), inserted “and” after the semicolon in par. (5), substituted a period for the semicolon in par. (6), and struck out pars. (7) and (8) which read as follows:
“(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.”
Subsec. (c). Pub. L. 110–315, §403(e)(3), added subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 110–315, §403(e)(2), (4)(A), redesignated subsec. (c) as (d) and struck out “postbaccalaureate achievement” after “applications for” in introductory provisions. Former subsec. (d) redesignated (e).
Subsec. (d)(2). Pub. L. 110–315, §403(e)(4)(B), inserted “, including—” and added subpars. (A) to (C) before semicolon.
Subsec. (e). Pub. L. 110–315, §403(e)(2), redesignated subsec. (d) as (e). Former subsec. (e) redesignated (f).
Subsec. (f). Pub. L. 110–315, §403(e)(2), (5), redesignated subsec. (e) as (f) and substituted “project under this section” for “postbaccalaureate achievement project” in introductory provisions. Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 110–315, §403(e)(2), (6), redesignated subsec. (f) as (g) and substituted “section 1070a–11(g)” for “section 1070a–11(f)” and “2009 through 2014” for “1993 through 1997”.
1998—Subsec. (e)(1). Pub. L. 105–244 substituted “$2,800” for “$2,400”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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.
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;
(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; and
(3) to improve the financial literacy and economic literacy of students, including—
(A) basic personal income, household money management, and financial planning skills; and
(B) basic economic decisionmaking skills.
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) education or counseling services designed to improve the financial literacy and economic literacy of students;
(6) guidance on secondary school reentry or entry to a general educational development (GED) program or other alternative education programs for secondary school dropouts;
(7) individualized personal, career, and academic counseling;
(8) tutorial services;
(9) career workshops and counseling;
(10) mentoring programs involving elementary or secondary school teachers, faculty members at institutions of higher education, students, or any combination of such persons; and
(11) programs and activities as described in paragraphs (1) through (10) that are specially designed for students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 11434a of title 42), students who are in foster care or are aging out of the foster care system, or other disconnected students.
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.
(Pub. L. 89–329, title IV, §402F, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 490; amended Pub. L. 110–315, title IV, §403(f), Aug. 14, 2008, 122 Stat. 3203.)
2008—Subsec. (a)(3). Pub. L. 110–315, §403(f)(1), added par. (3).
Subsec. (b)(5), (6). Pub. L. 110–315, §403(f)(2)(A), (B), added par. (5) and redesignated former par. (5) as (6). Former par. (6) redesignated (7).
Subsec. (b)(7). Pub. L. 110–315, §403(f)(2)(C), added par. (7) and struck out former par. (7) which read as follows: “personal counseling;”.
Pub. L. 110–315, §403(f)(2)(A), redesignated former par. (6) as (7). Former par. (7) redesignated (8).
Subsec. (b)(8) to (10). Pub. L. 110–315, §403(f)(2)(A), redesignated pars. (7) to (9) as (8) to (10), respectively. Former par. (10) redesignated (11).
Subsec. (b)(11). Pub. L. 110–315, §403(f)(2)(D), added par. (11) and struck out former par. (11) which read as follows: “programs and activities as described in paragraphs (1) through (9) which are specially designed for students of limited English proficiency.”
Pub. L. 110–315, §403(f)(2)(A), redesignated par. (10) as (11).
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.
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.
(5) Strategies for recruiting and serving hard to reach populations, including students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 11434a of title 42), students who are in foster care or are aging out of the foster care system, or other disconnected students.
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.
(Pub. L. 89–329, title IV, §402G, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 491; amended Pub. L. 105–244, title IV, §402(f), Oct. 7, 1998, 112 Stat. 1655; Pub. L. 110–315, title IV, §403(g), Aug. 14, 2008, 122 Stat. 3204.)
2008—Subsec. (b)(5). Pub. L. 110–315 added par. (5).
1998—Subsec. (a). Pub. L. 105–244, §402(f)(1), inserted “participating in,” after “leadership personnel employed in,”.
Subsec. (b)(4). Pub. L. 105–244, §402(f)(2), added par. (4).
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.
The Secretary shall submit annually, to the authorizing committees, a report that documents the performance of all programs funded under this division. Such report shall—
(A) be submitted not later than 12 months after the eligible entities receiving funds under this division are required to report their performance to the Secretary;
(B) focus on the programs’ performance on the relevant outcome criteria determined under section 1070a–11(f)(4) of this title;
(C) aggregate individual project performance data on the outcome criteria in order to provide national performance data for each program;
(D) include, when appropriate, descriptive data, multi-year data, and multi-cohort data; and
(E) include comparable data on the performance nationally of low-income students, first-generation students, and students with disabilities.
The Secretary shall provide, with each report submitted under paragraph (1), information on the impact of the secondary review process described in section 1070a–11(c)(8)(C)(iv) of this title, including the number and type of secondary reviews, the disposition of the secondary reviews, the effect on timing of awards, and any other information the Secretary determines is necessary.
For the purpose of improving the effectiveness of the programs and projects assisted under this division, the Secretary shall make grants to, or enter into contracts with, institutions of higher education and other public and private institutions and organizations to rigorously evaluate the effectiveness of the programs and projects assisted under this division, including a rigorous evaluation of the programs and projects assisted under section 1070a–13 of this title. The evaluation of the programs and projects assisted under section 1070a–13 of this title shall be implemented not later than June 30, 2010.
The evaluation of the programs and projects assisted under section 1070a–13 of this title that is described in subparagraph (A) shall examine the characteristics of the students who benefit most from the Upward Bound program under section 1070a–13 of this title and the characteristics of the programs and projects that most benefit students.
Each evaluation described in this paragraph shall be implemented in accordance with the requirements of this section.
The evaluations described in paragraph (1) shall identify institutional, community, and program or project practices that are effective in—
(i) enhancing the access of low-income individuals and first-generation college students to postsecondary education;
(ii) the preparation of such individuals and students for postsecondary education; and
(iii) fostering the success of the individuals and students in postsecondary education.
Any evaluation conducted under this division shall have as the evaluation's primary purpose the identification of particular practices that further the achievement of the outcome criteria determined under section 1070a–11(f)(4) of this title.
The Secretary shall disseminate to eligible entities and make available to the public the practices identified under subparagraph (B). The practices may be used by eligible entities that receive assistance under this division after the dissemination.
The Secretary shall not require an eligible entity, as a condition for receiving, or that receives, assistance under any program or project under this division to participate in an evaluation under this section that—
(A) requires the eligible entity to recruit additional students beyond those the program or project would normally recruit; or
(B) results in the denial of services for an eligible student under the program or project.
When designing an evaluation under this subsection, the Secretary shall continue to consider—
(A) the burden placed on the program participants or the eligible entity; and
(B) whether the evaluation meets generally accepted standards of institutional review boards.
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.
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.
(Pub. L. 89–329, title IV, §402H, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 491; amended Pub. L. 105–244, title IV, §402(g), Oct. 7, 1998, 112 Stat. 1655; Pub. L. 110–315, title IV, §403(h), Aug. 14, 2008, 122 Stat. 3204.)
2008—Pub. L. 110–315, §403(h)(1), substituted “Reports, evaluations, and grants for project improvement and dissemination” for “Evaluations and grants for project improvement and dissemination partnership projects” in section catchline.
Subsec. (a). Pub. L. 110–315, §403(h)(3), added subsec. (a). Former subsec. (a) redesignated (b).
Subsec. (b). Pub. L. 110–315, §403(h)(2), (4), redesignated subsec. (a) as (b), added pars. (1) to (4), and struck out former pars. (1) and (2) which read as follows:
“(1)
“(2)
Former subsec. (b) redesignated (c).
Subsecs. (c), (d). Pub. L. 110–315, §403(h)(2), redesignated subsecs. (b) and (c) as (c) and (d), respectively.
1998—Pub. L. 105–244 amended section generally, revising and restating former subsecs. (a) to (c) relating to evaluation for project improvement.
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.
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, §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, §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.
The Secretary is authorized, in accordance with the requirements of this division, to establish a program that encourages eligible entities to provide support, and maintain a commitment, to eligible low-income students, including students with disabilities, to assist the students in obtaining a secondary school diploma (or its recognized equivalent) and to prepare for and succeed in postsecondary education, by providing—
(1) financial assistance, academic support, additional counseling, mentoring, outreach, and supportive services to secondary school students, including students with disabilities, to reduce—
(A) the risk of such students dropping out of school; or
(B) the need for remedial education for such students at the postsecondary level; and
(2) information to students and their families about the advantages of obtaining a postsecondary education and, college financing options for the students and their families.
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.
The Secretary may award a grant under this division to an eligible entity described in paragraphs (1) and (2) of subsection (c) for—
(A) six years; or
(B) in the case of an eligible entity that applies for a grant under this division for seven years to enable the eligible entity to provide services to a student through the student's first year of attendance at an institution of higher education, seven years.
In making awards to eligible entities described in subsection (c)(1), the Secretary shall—
(A) give priority to eligible entities that—
(i) on the day before August 14, 2008, 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; and
(B) ensure that students served under this division on the day before August 14, 2008, continue to receive assistance through the completion of secondary school.
For the purposes of this division, the term “eligible entity” means—
(1) a State; or
(2) a partnership—
(A) consisting of—
(i) one or more local educational agencies; and
(ii) one or more degree granting institutions of higher education; and
(B) which may include not less than two other community organizations or entities, such as businesses, professional organizations, State agencies, institutions or agencies sponsoring programs authorized under subpart 4, or other public or private agencies or organizations.
(Pub. L. 89–329, title IV, §404A, as added Pub. L. 105–244, title IV, §403, Oct. 7, 1998, 112 Stat. 1656; amended Pub. L. 110–315, title IV, §404(a), Aug. 14, 2008, 122 Stat. 3206.)
A prior section 1070a–21, Pub. L. 89–329, title IV, §404A, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 492; amended Pub. L. 103–208, §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.
2008—Subsec. (a). Pub. L. 110–315, §404(a)(1), added subsec. (a) and struck out former subsec. (a). Prior to amendment, text read as follows: “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.”
Subsec. (b)(2), (3). Pub. L. 110–315, §404(a)(2), added pars. (2) and (3) and struck out former par. (2) which related to priority in making awards to eligible entities.
Subsec. (c)(2). Pub. L. 110–315, §404(a)(3), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “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.”
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.
Pub. L. 102–325, title XIV, §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, §6(b)(2), Oct. 31, 1998, 112 Stat. 3128.
In awarding grants from the amount appropriated under section 1070a–28 of this title for a fiscal year, the Secretary shall make available—
(1) to eligible entities described in section 1070a–21(c)(1) of this title, not less than 33 percent of such amount;
(2) to eligible entities described in section 1070a–21(c)(2) of this title, not less than 33 percent of such amount; and
(3) to eligible entities described in paragraph (1) or (2) of section 1070a–21(c) of this title, the remainder of such amount taking into consideration the number, quality, and promise of the applications for the grants, and, to the extent practicable—
(A) the geographic distribution of such grant awards; and
(B) the distribution of such grant awards between urban and rural applicants.
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.
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.
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);
(B) ensure that the services are provided through the 12th grade to students in the participating grade level and provide the option of continued services through the student's first year of attendance at an institution of higher education to the extent the provision of such services was described in the eligible entity's application for assistance under this division; and
(C) provide services under this division to students who have received services under a previous GEAR UP grant award but have not yet completed the 12th grade.
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.
Grant funds awarded under this division shall be used to supplement, and not supplant, other Federal, State, and local funds that would otherwise be expended to carry out activities assisted under this division.
(Pub. L. 89–329, title IV, §404B, as added Pub. L. 105–244, title IV, §403, Oct. 7, 1998, 112 Stat. 1657; amended Pub. L. 106–78, title VII, §752(b)(8), Oct. 22, 1999, 113 Stat. 1169; Pub. L. 110–315, title IV, §404(b), Aug. 14, 2008, 122 Stat. 3207.)
The Richard B. Russell National School Lunch Act, referred to in subsec. (d)(1)(A), is act June 4, 1946, ch. 281, 60 Stat. 230, which is classified generally to chapter 13 (§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.
A prior section 1070a–22, Pub. L. 89–329, title IV, §404B, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 492; amended Pub. L. 103–208, §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.
2008—Subsec. (a). Pub. L. 110–315, §404(b)(1), added subsec. (a) and struck out former subsec. (a) which related to funding rules.
Subsecs. (b), (c). Pub. L. 110–315, §404(b)(2), (3), redesignated subsecs. (c) and (d) as (b) and (c), respectively, and struck out former subsec. (b). Text read as follows: “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.”
Subsec. (d). Pub. L. 110–315, §404(b)(3), redesignated subsec. (g) as (d). Former subsec. (d) redesignated (c).
Subsec. (d)(1)(B), (C). Pub. L. 110–315, §404(b)(4), inserted “and provide the option of continued services through the student's first year of attendance at an institution of higher education to the extent the provision of such services was described in the eligible entity's application for assistance under this division” after “grade level” in par. (B) and added par. (C).
Subsec. (e). Pub. L. 110–315, §404(b)(2), (5), added subsec. (e) and struck out former subsec. (e). Prior to amendment, text read as follows: “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.”
Subsec. (f). Pub. L. 110–315, §404(b)(2), struck out subsec. (f). Text read as follows: “An eligible entity described in 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.”
Subsec. (g). Pub. L. 110–315, §404(b)(3), redesignated subsec. (g) as (d).
1999—Subsec. (g)(1)(A). Pub. L. 106–78 substituted “Richard B. Russell National School Lunch Act” for “National School Lunch Act”.
In order for an eligible entity to qualify for a grant under this division, the eligible entity shall submit to the Secretary an application for carrying out the program under this division.
Each application 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 reasonably require. Each such application shall, at a minimum—
(A) describe the activities for which assistance under this division is sought, including how the eligible entity will carry out the required activities described in section 1070a–24(a) of this title;
(B) describe, in the case of an eligible entity described in section 1070a–21(c)(2) of this title that chooses to provide scholarships, or an eligible entity described in section 1070a–21(c)(1) of this title, how the eligible entity will meet the requirements of section 1070a–25 of this title;
(C) describe, in the case of an eligible entity described in section 1070a–21(c)(2) of this title that requests a reduced match percentage under subsection (b)(2), how such reduction will assist the entity to provide the scholarships described in subsection (b)(2)(A)(ii);
(D) provide assurances that adequate administrative and support staff will be responsible for coordinating the activities described in section 1070a–24 of this title;
(E) provide assurances that 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;
(F) describe, in the case of an eligible entity described in section 1070a–21(c)(1) of this title that chooses to use a cohort approach, or an eligible entity described in section 1070a–21(c)(2) of this title, how the eligible entity will define the cohorts of the students served by the eligible entity pursuant to section 1070a–22(d) of this title, and how the eligible entity will serve the cohorts through grade 12, including—
(i) how vacancies in the program under this division will be filled; and
(ii) how the eligible entity will serve students attending different secondary schools;
(G) describe how the eligible entity will coordinate programs under this division with other existing Federal, State, or local programs to avoid duplication and maximize the number of students served;
(H) provide such additional assurances as the Secretary determines necessary to ensure compliance with the requirements of this division;
(I) provide information about the activities that will be carried out by the eligible entity to support systemic changes from which future cohorts of students will benefit; and
(J) describe the sources of matching funds that will enable the eligible entity to meet the matching requirement described in subsection (b).
The Secretary shall not approve an application submitted under subsection (a) unless such application—
(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 and may be accrued over the full duration of the grant award period, except that the eligible entity shall make substantial progress towards meeting the matching requirement in each year of the grant award period;
(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.
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. The Secretary may approve an eligible entity's request for a reduced match percentage—
(A) at the time of application—
(i) if the eligible entity demonstrates significant economic hardship that precludes the eligible entity from meeting the matching requirement; or
(ii) if the eligible entity is described in section 1070a–21(c)(2) of this title and requests that contributions to the eligible entity's scholarship fund established under section 1070a–25 of this title be matched on a two to one basis; or
(B) in response to a petition by an eligible entity subsequent to a grant award under this section if the eligible entity demonstrates that the matching funds described in its application are no longer available and the eligible entity has exhausted all revenues for replacing such matching funds.
An eligible entity may count toward the matching requirement described in subsection (b)(1)(A)—
(1) the amount of the financial assistance obligated to students from State, local, institutional, or private funds under this division, including pre-existing non-Federal financial assistance programs, including—
(A) the amount contributed to a student scholarship fund established under section 1070a–25 of this title; and
(B) the amount of the costs of administering the scholarship program under section 1070a–25 of this title;
(2) the amount of tuition, fees, room or board waived or reduced for recipients of financial assistance under this division;
(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; and
(4) other resources recognized by the Secretary, including equipment and supplies, cash contributions from non-Federal sources, transportation expenses, in-kind or discounted program services, indirect costs, and facility usage.
The Secretary shall convene peer review panels to assist in making determinations regarding the awarding of grants under this division.
(Pub. L. 89–329, title IV, §404C, as added Pub. L. 105–244, title IV, §403, Oct. 7, 1998, 112 Stat. 1658; amended Pub. L. 110–315, title IV, §404(c), Aug. 14, 2008, 122 Stat. 3208.)
A prior section 1070a–23, Pub. L. 89–329, title IV, §404C, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 493; amended Pub. L. 103–208, §2(b)(15)–(17), Dec. 20, 1993, 107 Stat. 2459; Pub. L. 104–193, title I, §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.
2008—Pub. L. 110–315, §404(c)(1), substituted “Applications” for “Eligible entity plans” in section catchline.
Subsec. (a). Pub. L. 110–315, §404(c)(2)(A), substituted “Application” for “Plan” in heading.
Subsec. (a)(1). Pub. L. 110–315, §404(c)(2)(B), substituted “an application” for “a plan” and struck out at end “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.”
Subsec. (a)(2). Pub. L. 110–315, §404(c)(2)(C), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “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.”
Subsec. (b)(1). Pub. L. 110–315, §404(c)(3)(A), substituted “an application” for “a plan” and “such application” for “such plan” in introductory provisions.
Subsec. (b)(1)(A). Pub. L. 110–315, §404(c)(3)(B), which directed insertion of “and may be accrued over the full duration of the grant award period, except that the eligible entity shall make substantial progress towards meeting the matching requirement in each year of the grant award period” after “in cash or in-kind”, was executed by making the insertion after “in cash or in kind” to reflect the probable intent of Congress.
Subsec. (b)(2). Pub. L. 110–315, §404(c)(3)(C), inserted at end “The Secretary may approve an eligible entity's request for a reduced match percentage—” and subpars. (A) and (B).
Subsec. (c)(1). Pub. L. 110–315, §404(c)(4)(A), substituted “obligated to students from State, local, institutional, or private funds under this division, including pre-existing non-Federal financial assistance programs, including—” and subpars. (A) and (B) for “paid to students from State, local, institutional, or private funds under this division;”.
Subsec. (c)(4). Pub. L. 110–315, §404(c)(4)(B)–(D), added par. (4).
Each eligible entity receiving a grant under this division shall provide comprehensive mentoring, outreach, and supportive services to students participating in the programs under this division. Such activities shall include the following:
(1) Providing information regarding financial aid for postsecondary education to participating students in the cohort described in section 1070a–22(d)(1)(A) of this title or to priority students described in subsection (d).
(2) Encouraging student enrollment in rigorous and challenging curricula and coursework, in order to reduce the need for remedial coursework at the postsecondary level.
(3) Improving the number of participating students who—
(A) obtain a secondary school diploma; and
(B) complete applications for and enroll in a program of postsecondary education.
(4) In the case of an eligible entity described in section 1070a–21(c)(1) of this title, providing for the scholarships described in section 1070a–25 of this title.
An eligible entity that receives a grant under this division may use grant funds to carry out one or more of the following activities:
(1) Providing tutors and mentors, who may include adults or former participants of a program under this division, for eligible students.
(2) Conducting outreach activities to recruit priority students described in subsection (d) to participate in program activities.
(3) Providing supportive services to eligible students.
(4) Supporting the development or implementation of rigorous academic curricula, which may include college preparatory, Advanced Placement, or International Baccalaureate programs, and providing participating students access to rigorous core academic courses that reflect challenging State academic standards.
(5) Supporting dual or concurrent enrollment programs between the secondary school and institution of higher education partners of an eligible entity described in section 1070a–21(c)(2) of this title, and other activities that support participating students in—
(A) meeting challenging State academic standards;
(B) successfully applying for postsecondary education;
(C) successfully applying for student financial aid; and
(D) developing graduation and career plans.
(6) Providing special programs or tutoring in science, technology, engineering, or mathematics.
(7) In the case of an eligible entity described in section 1070a–21(c)(2) of this title, providing support for scholarships described in section 1070a–25 of this title.
(8) Introducing eligible students to institutions of higher education, through trips and school-based sessions.
(9) Providing an intensive extended school day, school year, or summer program that offers—
(A) additional academic classes; or
(B) assistance with college admission applications.
(10) Providing other activities designed to ensure secondary school completion and postsecondary education enrollment of at-risk children, such as—
(A) the identification of at-risk children;
(B) after-school and summer tutoring;
(C) assistance to at-risk children in obtaining summer jobs;
(D) academic counseling;
(E) financial literacy and economic literacy education or counseling;
(F) volunteer and parent involvement;
(G) encouraging former or current participants of a program under this division to serve as peer counselors;
(H) skills assessments;
(I) personal and family counseling, and home visits;
(J) staff development; and
(K) programs and activities described in this subsection that are specially designed for students who are limited English proficient.
(11) Enabling eligible students to enroll in Advanced Placement or International Baccalaureate courses, or college entrance examination preparation courses.
(12) Providing services to eligible students in the participating cohort described in section 1070a–22(d)(1)(A) of this title, through the first year of attendance at an institution of higher education.
(13) Fostering and improving parent and family involvement in elementary and secondary education by promoting the advantages of a college education, and emphasizing academic admission requirements and the need to take college preparation courses, through parent engagement and leadership activities.
(14) Disseminating information that promotes the importance of higher education, explains college preparation and admission requirements, and raises awareness of the resources and services provided by the eligible entities to eligible students, their families, and communities.
(15) In the event that matching funds described in the application are no longer available, engaging entities described in section 1070a–21(c)(2) of this title in a collaborative manner to provide matching resources and participate in other activities authorized under this section.
In addition to the required activities described in subsection (a) and the permissible activities described in subsection (b), an eligible entity described in section 1070a–21(c)(1) of this title receiving funds under this division may use grant funds to carry out one or more of the following activities:
(1) Providing technical assistance to—
(A) secondary schools that are located within the State; or
(B) partnerships described in section 1070a–21(c)(2) of this title that are located within the State.
(2) Providing professional development opportunities to individuals working with eligible cohorts of students described in section 1070a–22(d)(1)(A) of this title.
(3) Providing administrative support to help build the capacity of eligible entities described in section 1070a–21(c)(2) of this title to compete for and manage grants awarded under this division.
(4) Providing strategies and activities that align efforts in the State to prepare eligible students to attend and succeed in postsecondary education, which may include the development of graduation and career plans.
(5) Disseminating information on the use of scientifically valid research and best practices to improve services for eligible students.
(6)(A) Disseminating information on effective coursework and support services that assist students in obtaining the goals described in subparagraph (B)(ii).
(B) Identifying and disseminating information on best practices with respect to—
(i) increasing parental involvement; and
(ii) preparing students, including students with disabilities and students who are limited English proficient, to succeed academically in, and prepare financially for, postsecondary education.
(7) Working to align State academic standards and curricula with the expectations of postsecondary institutions and employers.
(8) Developing alternatives to traditional secondary school that give students a head start on attaining a recognized postsecondary credential (including an industry-recognized certificate, an apprenticeship, or an associate's or a bachelor's degree), including school designs that give students early exposure to college-level courses and experiences and allow students to earn transferable college credits or an associate's degree at the same time as a secondary school diploma.
(9) Creating community college programs for drop-outs that are personalized drop-out recovery programs that allow drop-outs to complete a regular secondary school diploma and begin college-level work.
For eligible entities not using a cohort approach, the eligible entity shall treat as a priority student any student in secondary school who is—
(1) eligible to be counted under section 6333(c) of this title;
(2) eligible for assistance under a State program funded under part A or E of title IV of the Social Security Act (42 U.S.C. 601 et seq., 670 et seq.);
(3) eligible for assistance under subtitle B of title VII of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.); or
(4) otherwise considered by the eligible entity to be a disconnected student.
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, and other organizations the State determines appropriate.
(Pub. L. 89–329, title IV, §404D, as added Pub. L. 105–244, title IV, §403, Oct. 7, 1998, 112 Stat. 1659; amended Pub. L. 106–78, title VII, §752(b)(8), Oct. 22, 1999, 113 Stat. 1169; Pub. L. 110–315, title IV, §404(d), Aug. 14, 2008, 122 Stat. 3210.)
The Social Security Act, referred to in subsec. (d)(2), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Parts A and E of title IV of the Act are classified generally to parts A (§601 et seq.) and E (§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 McKinney-Vento Homeless Assistance Act, referred to in subsec. (d)(3), is Pub. L. 100–77, July 22, 1987, 101 Stat. 482. Subtitle B of title VII of the Act is classified generally to part B (§11431 et seq.) of subchapter VI of chapter 119 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 11301 of Title 42 and Tables.
A prior section 1070a–24, Pub. L. 89–329, title IV, §404D, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 495; amended Pub. L. 103–208, §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.
2008—Pub. L. 110–315 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (d) providing for services, use of funds, priority students, and allowable providers relating to early intervention.
1999—Subsec. (c)(2). Pub. L. 106–78 substituted “Richard B. Russell National School Lunch Act” for “National School Lunch Act”.
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.
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.
Subject to paragraph (2), each eligible entity described in section 1070a–21(c)(1) of this title that receives a grant under this division shall use not less than 25 percent and not more than 50 percent of the grant funds for activities described in section 1070a–24 of this title (except for the activity described in subsection (a)(4) of such section), with the remainder of such funds to be used for a scholarship program under this section in accordance with such subsection.
Notwithstanding paragraph (1), the Secretary may allow an eligible entity to use more than 50 percent of grant funds received under this division for such activities, if the eligible entity demonstrates that the eligible entity has another means of providing the students with the financial assistance described in this section and describes such means in the application submitted under section 1070a–23 of this title.
Each eligible entity providing scholarships under this section shall provide information on the eligibility requirements for the scholarships to all participating students upon the students’ entry into the programs assisted under this division.
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 minimum Federal Pell Grant award under section 1070a of this title for such award year.
Each eligible entity described in section 1070a–21(c)(1) of this title that receives a grant under this division shall hold in reserve, for the students served by such grant as described in section 1070a–22(d)(1)(A) or 1070a–24(d) of this title, an amount that is not less than the minimum scholarship amount described in subsection (d), multiplied by the number of students the eligible entity estimates will meet the requirements of paragraph (2).
Funds held in reserve under paragraph (1) shall be made available to an eligible student when the eligible student has—
(A) completed a secondary school diploma, its recognized equivalent, or another recognized alternative standard for individuals with disabilities; and
(B) enrolled in an institution of higher education.
Funds available to an eligible student under this subsection may be used for—
(A) tuition, fees, books, supplies, and equipment required for the enrollment or attendance of the eligible student at an institution of higher education; and
(B) in the case of an eligible student with special needs, expenses for special needs services that are incurred in connection with such enrollment or attendance.
Funds held in reserve under paragraph (1) that are not used by an eligible student within six years of the student's scheduled completion of secondary school may be redistributed by the eligible entity to other eligible students.
If, after meeting the requirements of paragraph (1) and, if applicable, redistributing excess funds in accordance with clause (i) of this subparagraph, an eligible entity has funds held in reserve under paragraph (1) that remain available, the eligible entity shall return such remaining reserved funds to the Secretary for distribution to other grantees under this division in accordance with the funding rules described in section 1070a–22(a) of this title.
Notwithstanding subparagraph (A), in the case of an eligible entity that does not receive assistance under this subpart for six fiscal years, the eligible entity shall return any funds held in reserve under paragraph (1) that are not awarded or obligated to eligible students to the Secretary for distribution to other grantees under this division.
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.
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 activities required under section 1070a–24(a) of this title.
(Pub. L. 89–329, title IV, §404E, as added Pub. L. 105–244, title IV, §403, Oct. 7, 1998, 112 Stat. 1661; amended Pub. L. 110–315, title IV, §404(e), Aug. 14, 2008, 122 Stat. 3213.)
A prior section 1070a–25, Pub. L. 89–329, title IV, §404E, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 495; amended Pub. L. 103–208, §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.
2008—Subsecs. (b), (c). Pub. L. 110–315, §404(e)(3), added subsecs. (b) and (c). Former subsecs. (b) and (c) redesignated (d) and (f), respectively.
Subsec. (d). Pub. L. 110–315, §404(e)(4), substituted “the minimum Federal Pell Grant award under section 1070a of this title for such award year” for “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”.
Pub. L. 110–315, §404(e)(2), redesignated subsec. (b) as (d). Former subsec. (d) redesignated (g).
Subsec. (e). Pub. L. 110–315, §404(e)(1), (5), added subsec. (e) and struck out former subsec. (e). Prior to amendment, text read as follows: “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.”
Subsec. (f). Pub. L. 110–315, §404(e)(1), (2), redesignated subsec. (c) as (f) and struck out former subsec. (f). Text read as follows: “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.”
Subsec. (g). Pub. L. 110–315, §404(e)(2), redesignated subsec. (d) as (g).
Subsec. (g)(4). Pub. L. 110–315, §404(e)(6), substituted “activities required under section 1070a–24(a) of this title” for “early intervention component required under section 1070a–24 of this title”.
Pub. L. 110–315, title IV, §404(i), as added by Pub. L. 111–39, title IV, §401(c), July 1, 2009, 123 Stat. 1940, provided that:
“(1)
“(2)
An eligible entity that receives a grant under this division shall provide certificates, to be known as 21st Century Scholar Certificates, to all students served by the eligible entity who are participating in a program under this division.
A 21st Century Scholar Certificate shall be personalized for each student and indicate the amount of Federal financial aid for college and the estimated amount of any scholarship provided under section 1070a–25 of this title, if applicable, that a student may be eligible to receive.
(Pub. L. 89–329, title IV, §404F, as added Pub. L. 105–244, title IV, §403, Oct. 7, 1998, 112 Stat. 1662; amended Pub. L. 106–78, title VII, §752(b)(8), Oct. 22, 1999, 113 Stat. 1169; Pub. L. 110–315, title IV, §404(f), Aug. 14, 2008, 122 Stat. 3214.)
A prior section 1070a–26, Pub. L. 89–329, title IV, §404F, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 496; amended Pub. L. 103–208, §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.
2008—Pub. L. 110–315 added subsecs. (a) and (b) and struck out former subsecs. (a) and (b), which related to the provision of 21st Century Scholar Certificates and required that such Certificates be personalized for each student.
1999—Subsec. (a)(2). Pub. L. 106–78 substituted “Richard B. Russell National School Lunch Act” for “National School Lunch Act”.
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.
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.
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. Such evaluation shall include a separate analysis of—
(1) the implementation of the scholarship component described in section 1070a–25 of this title; and
(2) the use of methods for complying with matching requirements described in paragraphs (1) and (2) of section 1070a–23(c) of this title.
The Secretary shall biennially report to Congress regarding the activities assisted under this division and the evaluations conducted pursuant to this section.
(Pub. L. 89–329, title IV, §404G, as added Pub. L. 105–244, title IV, §403, Oct. 7, 1998, 112 Stat. 1662; amended Pub. L. 110–315, title IV, §404(g), Aug. 14, 2008, 122 Stat. 3215.)
A prior section 1070a–27, Pub. L. 89–329, title IV, §404G, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 496; amended Pub. L. 103–208, §2(b)(23), Dec. 20, 1993, 107 Stat. 2459; Pub. L. 103–382, title III, §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.
2008—Subsec. (c). Pub. L. 110–315 inserted at end “Such evaluation shall include a separate analysis of—” and pars. (1) and (2).
There are authorized to be appropriated to carry out this division $400,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years.
(Pub. L. 89–329, title IV, §404H, as added Pub. L. 105–244, title IV, §403, Oct. 7, 1998, 112 Stat. 1663; amended Pub. L. 110–315, title IV, §404(h), Aug. 14, 2008, 122 Stat. 3215.)
2008—Pub. L. 110–315 substituted “$400,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years” for “$200,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years”.
Chapter 3 of subpart 2 of part A of title IV of the Higher Education Act of 1965, which comprised this division, was originally added to Pub. L. 89–329, title IV, by Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 497. Chapter 3, which related to academic achievement incentive scholarships, was set out as having been added by Pub. L. 105–244, title IV, §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.
Section 1070a–31, Pub. L. 89–329, title IV, §406A, as added Pub. L. 105–244, title IV, §404, Oct. 7, 1998, 112 Stat. 1663, authorized scholarships to students who graduate from secondary school after May 1, 2000.
A prior section 1070a–31, Pub. L. 89–329, title IV, §406A, as added Pub. L. 102–325, title IV, §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.
Section 1070a–32, Pub. L. 89–329, title IV, §406B, as added Pub. L. 105–244, title IV, §404, Oct. 7, 1998, 112 Stat. 1663, related to scholarship program requirements.
A prior section 1070a–32, Pub. L. 89–329, title IV, §406B, as added Pub. L. 102–325, title IV, §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.
Section 1070a–33, Pub. L. 89–329, title IV, §406C, as added Pub. L. 105–244, title IV, §404, Oct. 7, 1998, 112 Stat. 1664, related to eligibility of scholars.
A prior section 1070a–33, Pub. L. 89–329, title IV, §406C, as added Pub. L. 102–325, title IV, §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.
Section 1070a–34, Pub. L. 89–329, title IV, §406D, as added Pub. L. 105–244, title IV, §404, Oct. 7, 1998, 112 Stat. 1664, related to student requirements.
A prior section 1070a–34, Pub. L. 89–329, title IV, §406D, as added Pub. L. 102–325, title IV, §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.
Section 1070a–35, Pub. L. 89–329, title IV, §407E [406E], as added Pub. L. 105–244, title IV, §404, Oct. 7, 1998, 112 Stat. 1664, authorized appropriations for fiscal year 1999 and the 4 succeeding fiscal years.
A prior section 1070a–35, Pub. L. 89–329, title IV, §406E, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 498, related to student eligibility, prior to the general amendment of this division by Pub. L. 105–244.
Prior sections 1070a–36 and 1070a–37 were omitted in the general amendment of this division by Pub. L. 105–244.
Section 1070a–36, Pub. L. 89–329, title IV, §406F, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 499, related to early intervention scholarship agreement.
Section 1070a–37, Pub. L. 89–329, title IV, §406G, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 499, authorized appropriations to carry out this division.
Section 1070a–41, Pub. L. 89–329, title IV, §408A, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 500, authorized grants to develop model programs.
Section 1070a–42, Pub. L. 89–329, title IV, §408B, as added Pub. L. 102–325, title IV, §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, §408C, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 501, authorized appropriations to carry out this division.
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.
Section 1070a–51, Pub. L. 89–329, title IV, §409A, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 501; amended Pub. L. 103–208, §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, §409B, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 501, related to early awareness information program.
Section 1070a–53, Pub. L. 89–329, title IV, §409C, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 502, authorized appropriations to carry out this division.
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.
Section, Pub. L. 89–329, title IV, §410A, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 502, related to national student savings demonstration program.
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.
Section, Pub. L. 89–329, title IV, §410B, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 503, related to information on eligibility for assistance.
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.
Section, Pub. L. 89–329, title IV, §410C, as added Pub. L. 102–325, title IV, §402(a)(4), July 23, 1992, 106 Stat. 504, related to technical assistance grants.
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.
Pub. L. 102–325, title IV, §§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.
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.
(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 such sums as may be necessary for fiscal year 2009 and each of the five 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.
(Pub. L. 89–329, title IV, §413A, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1328; amended Pub. L. 102–325, title IV, §403(b), July 23, 1992, 106 Stat. 505; Pub. L. 105–244, title IV, §406(a), Oct. 7, 1998, 112 Stat. 1664.; Pub. L. 110–315, title IV, §406(a), Aug. 14, 2008, 122 Stat. 3215.)
A prior section 1070b, Pub. L. 89–329, title IV, §413A, as added Pub. L. 92–318, title I, §131(b)(1), June 23, 1972, 86 Stat. 251; amended Pub. L. 94–482, title I, §122(a), Oct. 12, 1976, 90 Stat. 2094; Pub. L. 96–49, §5(a)(3), Aug. 13, 1979, 93 Stat. 352; Pub. L. 96–374, title IV, §403(a), (b), title XIII, §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.
2008—Subsec. (b)(1). Pub. L. 110–315 substituted “such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years” for “$675,000,000 for fiscal year 1999 and such sums as may be necessary for the 4 succeeding fiscal years”.
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.
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.
(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.
(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.
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.
(Pub. L. 89–329, title IV, §413B, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1328; amended Pub. L. 102–325, title IV, §403(c), July 23, 1992, 106 Stat. 505.)
A prior section 1070b–1, Pub. L. 89–329, title IV, §413B, as added Pub. L. 92–318, title I, §131(b)(1), June 23, 1972, 86 Stat. 252; amended Pub. L. 96–374, title IV, §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.
1992—Subsec. (a)(1). Pub. L. 102–325, §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, §403(c)(2), added par. (3).
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.
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.
(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.
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.
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.
(Pub. L. 89–329, title IV, §413C, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1329; amended Pub. L. 102–325, title IV, §403(d)–(f), July 23, 1992, 106 Stat. 506; Pub. L. 103–208, §2(b)(25), Dec. 20, 1993, 107 Stat. 2459; Pub. L. 105–244, title IV, §406(b), Oct. 7, 1998, 112 Stat. 1665.)
A prior section 1070b–2, Pub. L. 89–329, title IV, §413C, as added Pub. L. 92–318, title I, §131(b)(1), June 23, 1972, 86 Stat. 253; amended Pub. L. 94–482, title I, §122(b), Oct. 12, 1976, 90 Stat. 2094; Pub. L. 96–374, title IV, §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.
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, §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, §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, §403(f), struck out before period at end “, and may transfer such funds in accordance with the provisions of section 1095 of this title”.
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. 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.
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.
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.”
(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.
(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.
(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 $600.
(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.
The Secretary shall, from time to time, set dates before which institutions must file applications for allocations under this part.
(Pub. L. 89–329, title IV, §413D, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1330; amended Pub. L. 100–50, §4, June 3, 1987, 101 Stat. 340; Pub. L. 102–325, title IV, §403(g), (h), July 23, 1992, 106 Stat. 506; Pub. L. 103–208, §2(b)(26), Dec. 20, 1993, 107 Stat. 2459; Pub. L. 105–244, title IV, §406(c)(1), (2), Oct. 7, 1998, 112 Stat. 1665; Pub. L. 110–315, title IV, §406(b), (c), Aug. 14, 2008, 122 Stat. 3215.)
Subpart 3 of this part, referred to in subsec. (c)(1)(B), was redesignated subpart 4 by Pub. L. 102–325, title IV, §402(a)(2), July 23, 1992, 106 Stat. 482, and former subpart 2 [this subpart] was redesignated as subpart 3.
A prior section 1070b–3, Pub. L. 89–329, title IV, §413D, as added Pub. L. 92–318, title I, §131(b)(1), June 23, 1972, 86 Stat. 254; amended Pub. L. 96–374, title IV, §403(e), (f), title XIII, §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.
2008—Subsec. (a)(1). Pub. L. 110–315, §406(c), substituted “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)” for “such institution received and used under this subpart for fiscal year 1985”.
Subsec. (c)(3)(D). Pub. L. 110–315, §406(b), substituted “$600” for “$450”.
1998—Subsec. (a)(1). Pub. L. 105–244, §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”, could not be executed because the phrase “received and used under this part for fiscal year 1985” did not appear in text.
Subsec. (a)(2)(A), (B). Pub. L. 105–244, §406(c)(1)(B)(i), substituted “1999” for “1985” in introductory provisions.
Subsec. (a)(2)(C)(i). Pub. L. 105–244, §406(c)(1)(B)(ii), substituted “2000” for “1986”.
Subsec. (b). Pub. L. 105–244, §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, §406(c)(2)(D), redesignated subsec. (d) as (c). Former subsec. (c) redesignated (b).
Subsec. (c)(1). Pub. L. 105–244, §406(c)(2)(B), substituted “the remainder” for “three-quarters of the remainder”.
Subsec. (c)(2)(A)(i). Pub. L. 105–244, §406(c)(2)(C), substituted “subsection (c)” for “subsection (d)”.
Subsecs. (d) to (f). Pub. L. 105–244, §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, §403(g), added par. (4).
Subsec. (e). Pub. L. 102–325, §403(h), designated existing provisions as par. (1) and added par. (2).
1987—Subsec. (d)(2)(D). Pub. L. 100–50, §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, §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, §4(b)(1), struck out “and for graduate and professional students” after “undergraduate students”.
Subsec. (d)(3)(B). Pub. L. 100–50, §4(b)(2), struck out “and graduate and professional” after “average undergraduate” and struck out “and graduate” after “from undergraduate”.
Pub. L. 105–244, title IV, §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.”
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. 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.
Section 401(b)(6) of Pub. L. 99–498, as added by Pub. L. 100–50, §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.”
1 See References in Text note below.
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.
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.
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.
(Pub. L. 89–329, title IV, §413E, as added Pub. L. 105–244, title IV, §406(d), Oct. 7, 1998, 112 Stat. 1665.)
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.
Pub. L. 105–244, title IV, §407(a)(1), Oct. 7, 1998, 112 Stat. 1666, amended heading generally.
Pub. L. 102–325, title IV, §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.
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.
There are authorized to be appropriated to carry out this subpart $200,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years.
For any fiscal year for which the amount appropriated under paragraph (1) exceeds $30,000,000, the excess amount shall be available to carry out section 1070c–3a of this title.
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.
(Pub. L. 89–329, title IV, §415A, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1332; amended Pub. L. 102–325, title IV, §404(a), July 23, 1992, 106 Stat. 506; Pub. L. 105–244, title IV, §407(b), (c)(1), Oct. 7, 1998, 112 Stat. 1666, 1667; Pub. L. 106–554, §1(a)(1) [title III, §316(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–47; Pub. L. 110–315, title IV, §407(a), Aug. 14, 2008, 122 Stat. 3215.)
A prior section 1070c, Pub. L. 89–329, title IV, §415A, as added Pub. L. 92–318, title I §131(b)(1), June 23, 1972, 86 Stat. 255; amended Pub. L. 94–482, title I, §123(a), (c)(1), Oct. 12, 1976, 90 Stat. 2094; Pub. L. 95–43, §1(b)(3), June 15, 1977, 91 Stat. 218; Pub. L. 96–49, §5(a)(4), Aug. 13, 1979, 93 Stat. 352; Pub. L. 96–374, title IV, §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.
2008—Subsec. (b)(1), (2). Pub. L. 110–315 added pars. (1) and (2) and struck out former pars. (1) and (2) which related to appropriations and reservation of funding for section 1070c–3a of this title for fiscal year 1999 and the 4 succeeding fiscal years.
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, §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, §407(b)(1), substituted “1999” for “1993”.
Subsec. (b)(2), (3). Pub. L. 105–244, §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)
“(b)
“(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.”
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.
(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.
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.
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.
(Pub. L. 89–329, title IV, §415B, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1333; amended Pub. L. 105–244, title IV, §407(a)(2)(A), (c)(2), Oct. 7, 1998, 112 Stat. 1666, 1667.)
A prior section 1070c–1, Pub. L. 89–329, title IV, §415B, as added Pub. L. 92–318, title I, §131(b)(1), June 23, 1972, 86 Stat. 256; amended Pub. L. 94–482, title I, §123(c)(2), Oct. 12, 1976, 90 Stat. 2094; Pub. L. 96–374, title IV, §404(b), title XIII, §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.
1998—Subsec. (a)(1). Pub. L. 105–244, §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, §407(a)(2)(A), substituted “leveraging educational assistance partnership” for “State student grant incentive”.
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.
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.
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 to exceed the lesser of $12,500 or the student's cost of attendance 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;
(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 State funds for the program under this subpart; and
(11) provides notification to eligible students that such grants are—
(A) Leveraging Educational Assistance Partnership Grants; and
(B) funded by the Federal Government, the State, and, where applicable, other contributing partners.
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.
(Pub. L. 89–329, title IV, §415C, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1333; amended Pub. L. 102–325, title IV, §404(b)–(d), July 23, 1992, 106 Stat. 507; Pub. L. 103–208, §2(b)(27), Dec. 20, 1993, 107 Stat. 2459; Pub. L. 105–244, title IV, §407(a)(2)(B), Oct. 7, 1998, 112 Stat. 1666; Pub. L. 110–315, title IV, §407(b), Aug. 14, 2008, 122 Stat. 3215.)
A prior section 1070c–2, Pub. L. 89–329, title IV, §415C, as added Pub. L. 92–318, title I, §131(b)(1), June 23, 1972, 86 Stat. 256; amended Pub. L. 94–482, title I, §123(b), Oct. 12, 1976, 90 Stat. 2094; Pub. L. 95–43, §1(a)(6), June 15, 1977, 91 Stat. 213; Pub. L. 95–566, §3, Nov. 1, 1978, 92 Stat. 2403; Pub. L. 96–374, title IV, §404(c), title XIII, §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.
2008—Subsec. (b)(2). Pub. L. 110–315, §407(b)(1), substituted “not to exceed the lesser of $12,500 or the student's cost of attendance per academic year” for “not in excess of $5,000 per academic year”.
Subsec. (b)(9). Pub. L. 110–315, §407(b)(2), struck out “and” after semicolon.
Subsec. (b)(10). Pub. L. 110–315, §407(b)(3), struck out “a direct appropriation of” before “State funds” and substituted “; and” for period at end.
Subsec. (b)(11). Pub. L. 110–315, §407(b)(4), added par. (11).
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, §404(b), substituted “$5,000” for “$2,500”.
Subsec. (b)(4). Pub. L. 102–325, §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, §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;”.
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. 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.
(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.
(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.
(Pub. L. 89–329, title IV, §415D, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1335.)
A prior section 1070c–3, Pub. L. 89–329, title IV, §415D, as added Pub. L. 92–318, title I, §131(b)(1), June 23, 1972, 86 Stat. 257; amended Pub. L. 96–374, title XIII, §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.
It is the purpose of this section to expand college access and increase college persistence by making allotments to States to enable the States to—
(1) expand and enhance partnerships with institutions of higher education, early information and intervention, mentoring, or outreach programs, private corporations, philanthropic organizations, and other interested parties, including community-based organizations, in order to—
(A) carry out activities under this section; and
(B) provide coordination and cohesion among Federal, State, and local governmental and private efforts that provide financial assistance to help low-income students attend an institution of higher education;
(2) provide need-based grants for access and persistence to eligible low-income students;
(3) provide early notification to low-income students of the students’ eligibility for financial aid; and
(4) encourage increased participation in early information and intervention, mentoring, or outreach programs.
From sums reserved under section 1070c(b)(2) of this title for each fiscal year, the Secretary shall make an allotment to each State that submits an application for an allotment in accordance with subsection (c) to enable the State to pay the Federal share, as described in paragraph (2), of the cost of carrying out the activities under subsection (d).
In making allotments under subparagraph (A), the Secretary shall consider the following:
Except as provided in clause (ii), if a State continues to meet the specifications established in such State's application under subsection (c), the Secretary shall make an allotment to such State that is not less than the allotment made to such State for the previous fiscal year.
If a State that applied for and received an allotment under this section for fiscal year 2010 pursuant to subsection (j) meets the specifications established in the State's application under subsection (c) for fiscal year 2011, then the Secretary shall make an allotment to such State for fiscal year 2011 that is not less than the allotment made pursuant to subsection (j) to such State for fiscal year 2010 under this section (as this section was in effect on the day before August 14, 2008).
The Secretary shall give priority in making allotments to States that meet the requirements described in paragraph (2)(B)(ii).
The Federal share of the cost of carrying out the activities under subsection (d) for any fiscal year shall not exceed 66.66 percent.
The Federal share under this section shall be determined in accordance with the following:
(i) The Federal share of the cost of carrying out the activities under subsection (d) shall be 57 percent if a State applies for an allotment under this section in partnership with any number of degree-granting institutions of higher education in the State whose combined full-time enrollment represents less than a majority of all students attending institutions of higher education in the State, and—
(I) philanthropic organizations that are located in, or that provide funding in, the State; or
(II) private corporations that are located in, or that do business in, the State.
(ii) The Federal share of the cost of carrying out the activities under subsection (d) shall be 66.66 percent if a State applies for an allotment under this section in partnership with any number of degree-granting institutions of higher education in the State whose combined full-time enrollment represents a majority of all students attending institutions of higher education in the State, and—
(I) philanthropic organizations that are located in, or that provide funding in, the State; or
(II) private corporations that are located in, or that do business in, the State.
The non-Federal share under this section may be provided in cash or in kind, fairly evaluated.
For the purpose of calculating the non-Federal share under this subparagraph, an in-kind contribution is a non-cash contribution that—
(I) has monetary value, such as the provision of—
(aa) room and board; or
(bb) transportation passes; and
(II) helps a student meet the cost of attendance at an institution of higher education.
For the purpose of calculating a student's need in accordance with part E, an in-kind contribution described in clause (ii) shall not be considered an asset or income of the student or the student's parent.
A State that desires to receive an allotment under this section on behalf of a partnership described in paragraph (3) shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.
An application submitted under subparagraph (A) shall include the following:
(i) A description of the State's plan for using the allotted funds.
(ii) An assurance that the State will provide matching funds, in cash or in kind, from State, institutional, philanthropic, or private funds, of not less than 33.33 percent of the cost of carrying out the activities under subsection (d). The State shall specify the methods by which matching funds will be paid. A State that uses non-Federal funds to create or expand partnerships with entities described in subsection (a)(1), in which such entities match State funds for student scholarships, may apply such matching funds from such entities toward fulfilling the State's matching obligation under this clause.
(iii) An assurance that the State will use funds provided under this section to supplement, and not supplant, Federal and State funds available for carrying out the activities under this subchapter and part C of subchapter I of chapter 34 of title 42.
(iv) An assurance that early information and intervention, mentoring, or outreach programs exist within the State or that there is a plan to make such programs widely available.
(v) A description of the organizational structure that the State has in place to administer the activities under subsection (d), including a description of how the State will compile information on degree completion of students receiving grants under this section.
(vi) A description of the steps the State will take to ensure that students who receive grants under this section persist to degree completion.
(vii) An assurance that the State has a method in place, such as acceptance of the automatic zero expected family contribution determination described in section 1087ss(c) of this title, to identify eligible low-income students and award State grant aid to such students.
(viii) An assurance that the State will provide notification to eligible low-income students that grants under this section are—
(I) Leveraging Educational Assistance Partnership Grants; and
(II) funded by the Federal Government and the State, and, where applicable, other contributing partners.
The State agency that submits an application for a State under section 1070c–2(a) of this title shall be the same State agency that submits an application under paragraph (1) for such State.
In applying for an allotment under this section, the State agency shall apply for the allotment in partnership with—
(A) not less than one public and one private degree-granting institution of higher education that are located in the State, if applicable;
(B) new or existing early information and intervention, mentoring, or outreach programs located in the State; and
(C) not less than one—
(i) philanthropic organization located in, or that provides funding in, the State; or
(ii) private corporation located in, or that does business in, the State.
A State agency that is in a partnership receiving an allotment under this section—
(i) shall—
(I) serve as the primary administrative unit for the partnership;
(II) provide or coordinate non-Federal share funds, and coordinate activities among partners;
(III) encourage each institution of higher education in the State to participate in the partnership;
(IV) make determinations and early notifications of assistance as described under subsection (d)(2); and
(V) annually report to the Secretary on the partnership's progress in meeting the purpose of this section; and
(ii) may provide early information and intervention, mentoring, or outreach programs.
A degree-granting institution of higher education that is in a partnership receiving an allotment under this section—
(i) shall—
(I) recruit and admit participating qualified students and provide such additional institutional grant aid to participating students as agreed to with the State agency;
(II) provide support services to students who receive grants for access and persistence under this section and are enrolled at such institution; and
(III) assist the State in the identification of eligible students and the dissemination of early notifications of assistance as agreed to with the State agency; and
(ii) may provide funding for early information and intervention, mentoring, or outreach programs or provide such services directly.
An early information and intervention, mentoring, or outreach program that is in a partnership receiving an allotment under this section shall provide direct services, support, and information to participating students.
A philanthropic organization or private corporation that is in a partnership receiving an allotment under this section shall provide funds for grants for access and persistence for participating students, or provide funds or support for early information and intervention, mentoring, or outreach programs.
Each State receiving an allotment under this section shall use the funds to establish a partnership to award grants for access and persistence to eligible low-income students in order to increase the amount of financial assistance such students receive under this subpart for undergraduate education expenses.
The amount of a grant for access and persistence awarded by a State to a student under this section shall be not less than—
(i) the average undergraduate tuition and mandatory fees at the public institutions of higher education in the State where the student resides that are of the same type of institution as the institution of higher education the student attends; minus
(ii) other Federal and State aid the student receives.
A State receiving an allotment under this section may restrict the use of grants for access and persistence under this section by awarding the grants only to students attending institutions of higher education that are participating in the partnership.
If a State provides grants through another program under this subpart to students attending institutions of higher education located in another State, grants awarded under this section may be used at institutions of higher education located in another State.
Each State receiving an allotment under this section shall annually notify low-income students in grades seven through 12 in the State, and their families, of their potential eligibility for student financial assistance, including an access and persistence grant, to attend an institution of higher education.
The notice under subparagraph (A)—
(i) shall include—
(I) information about early information and intervention, mentoring, or outreach programs available to the student;
(II) information that a student's eligibility for a grant for access and persistence is enhanced through participation in an early information and intervention, mentoring, or outreach program;
(III) an explanation that student and family eligibility for, and participation in, other Federal means-tested programs may indicate eligibility for a grant for access and persistence and other student aid programs;
(IV) a nonbinding estimate of the total amount of financial aid that a low-income student with a similar income level may expect to receive, including an estimate of the amount of a grant for access and persistence and an estimate of the amount of grants, loans, and all other available types of aid from the major Federal and State financial aid programs;
(V) an explanation that in order to be eligible for a grant for access and persistence, at a minimum, a student shall—
(aa) meet the requirement under paragraph (3);
(bb) graduate from secondary school; and
(cc) enroll at an institution of higher education—
(AA) that is a partner in the partnership; or
(BB) with respect to which attendance is permitted under subsection (d)(1)(C)(ii);
(VI) information on any additional requirements (such as a student pledge detailing student responsibilities) that the State may impose for receipt of a grant for access and persistence under this section; and
(VII) instructions on how to apply for a grant for access and persistence and an explanation that a student is required to file a Free Application for Federal Student Aid authorized under section 1090(a) of this title to be eligible for such grant and assistance from other Federal and State financial aid programs; and
(ii) may include a disclaimer that grant awards for access and persistence are contingent on—
(I) a determination of the student's financial eligibility at the time of the student's enrollment at an institution of higher education that is a partner in the partnership or qualifies under subsection (d)(1)(C)(ii);
(II) annual Federal and State spending for higher education; and
(III) other aid received by the student at the time of the student's enrollment at such institution of higher education.
In determining which students are eligible to receive grants for access and persistence, the State shall ensure that each such student complies with the following subparagraph (A) or (B):
(A) Meets not less than two of the following criteria, with priority given to students meeting all of the following criteria:
(i) Has an expected family contribution equal to zero, as determined under part E, or a comparable alternative based upon the State's approved criteria in section 1070c–2(b)(4) of this title.
(ii) Qualifies for the State's maximum undergraduate award, as authorized under section 1070c–2(b) of this title.
(iii) Is participating in, or has participated in, a Federal, State, institutional, or community early information and intervention, mentoring, or outreach program, as recognized by the State agency administering activities under this section.
(B) Is receiving, or has received, a grant for access and persistence under this section, in accordance with paragraph (5).
Once a student, including those students who have received early notification under paragraph (2) from the State, applies for admission to an institution that is a partner in the partnership, files a Free Application for Federal Student Aid and any related State form, and is determined eligible by the State under paragraph (3), the State shall—
(A) issue the student a preliminary award certificate for a grant for access and persistence with estimated award amounts; and
(B) inform the student that payment of the grant for access and persistence award amounts is subject to certification of enrollment and award eligibility by the institution of higher education.
An eligible student who receives a grant for access and persistence under this section shall receive such grant award for each year of such student's undergraduate education in which the student remains eligible for assistance under this subchapter and part C of subchapter I of chapter 34 of title 42, including pursuant to section 1091(c) of this title, and remains financially eligible as determined by the State, except that the State may impose reasonable time limits to degree completion.
A State that receives an allotment under this section may reserve not more than two percent of the funds made available annually through the allotment for State administrative functions required to carry out this section.
The Secretary may grant, upon the request of an institution of higher education that is in a partnership described in subsection (b)(2)(B)(ii) and that receives an allotment under this section, a waiver for such institution from statutory or regulatory requirements that inhibit the ability of the institution to successfully and efficiently participate in the activities of the partnership.
The provisions of this subpart that are not inconsistent with this section shall apply to the program authorized by this section.
Each State receiving an allotment under this section for a fiscal year shall provide the Secretary with 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 (d) for the preceding fiscal year were not less than the amount expended per student or the aggregate expenditure by the State for the activities for the second preceding fiscal year.
Notwithstanding subsection (h), for purposes of determining a State's share of the cost of the authorized activities described in subsection (d), the State shall consider only those expenditures from non-Federal sources that exceed the State's total expenditures for need-based grants, scholarships, and work-study assistance for fiscal year 1999 (including any such assistance provided under this subpart).
For the two-year period that begins on August 14, 2008, the Secretary shall continue to award grants under section 1070c–3a of this title as such section existed on the day before August 14, 2008, to States that choose to apply for grants under such predecessor section.
Not later than three years after August 14, 2008, and annually thereafter, the Secretary shall submit a report describing the activities and the impact of the partnerships under this section to the authorizing committees.
(Pub. L. 89–329, title IV, §415E, as added Pub. L. 105–244, title IV, §407(c)(2), Oct. 7, 1998, 112 Stat. 1666; amended Pub. L. 106–554, §1(a)(1) [title III, §316(2), (3)], Dec. 21, 2000, 114 Stat. 2763, 2763A–47; Pub. L. 110–315, title IV, §407(c), Aug. 14, 2008, 122 Stat. 3216; Pub. L. 111–39, title IV, §401(a)(6), July 1, 2009, 123 Stat. 1938.)
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.
2009—Subsec. (b)(1)(B). Pub. L. 111–39 substituted “Except as provided in clause (ii), if a” for “If a” in cl. (i), added cl. (ii), and redesignated former cl. (ii) as (iii).
2008—Pub. L. 110–315 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (g) relating to a special leveraging educational assistance partnership program.
2000—Subsec. (c). Pub. L. 106–554, §1(a)(1) [title III, §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, §1(a)(1) [title III, §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.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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.
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.
(Pub. L. 89–329, title IV, §415F, formerly §415E, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1336; amended Pub. L. 100–50, §5, June 3, 1987, 101 Stat. 340; renumbered §415F, Pub. L. 105–244, title IV, §407(c)(1), Oct. 7, 1998, 112 Stat. 1666.)
A prior section 1070c–4, Pub. L. 89–329, title IV, §415E, as added Pub. L. 94–482, title I, §123(c)(3), Oct. 12, 1976, 90 Stat. 2094; amended Pub. L. 95–43, §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, §404(d), Oct. 3, 1980, 94 Stat. 1407, eff. Oct. 1, 1980.
1987—Par. (1). Pub. L. 100–50 substituted “literacy” for “literary”.
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.
Section 1070d, Pub. L. 89–329, title IV, §417A, as added Pub. L. 99–498, title IV, §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, §417A, as added Pub. L. 96–374, title IV, §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, §417A, as added Pub. L. 92–318, title I, §131(b)(1), June 23, 1972, 86 Stat. 258; amended Pub. L. 94–482, title I, §124(a), Oct. 12, 1976, 90 Stat. 2094; Pub. L. 96–49, §5(a)(5), Aug. 13, 1979, 93 Stat. 352; Pub. L. 96–374, title XIII, §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, §417B, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1337, authorized a talent search program.
A prior section 1070d–1, Pub. L. 89–329, title IV, §417B, as added Pub. L. 96–374, title IV, §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, §417B, as added Pub. L. 92–318, title I, §131(b)(1), June 23, 1972, 86 Stat. 258; amended Pub. L. 93–380, title VIII, §833(a), Aug. 21, 1974, 88 Stat. 603; Pub. L. 94–482, title I, §124(b), (c), Oct. 12, 1976, 90 Stat. 2094, 2095; Pub. L. 95–566, §4, Nov. 1, 1978, 92 Stat. 2403; Pub. L. 96–374, title XIII, §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, §417C, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1338, authorized an upward bound program.
A prior section 1070d–1a, Pub. L. 89–329, title IV, §417C, as added Pub. L. 96–374, title IV, §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, §417D, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1339; amended Pub. L. 100–50, §6, June 3, 1987, 101 Stat. 340; Pub. L. 100–418, title VI, §6271, Aug. 23, 1988, 102 Stat. 1523, related to student support services program.
A prior section 1070d–1b, Pub. L. 89–329, title IV, §417D, as added Pub. L. 96–374, title IV, §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, §417E, as added Pub. L. 99–498, title IV, §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, §417E, as added Pub. L. 96–374, title IV, §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, §417F, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1341, related to staff development activities.
A prior section 1070d–1d, Pub. L. 89–329, title IV, §417F, as added Pub. L. 96–374, title IV, §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.
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.
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 immediate family, 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 (including preparation for college entrance examinations), or in military service or career positions; and
(C) health services;
(4) information concerning, and assistance in obtaining, available student financial aid;
(5) 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;
(8) other essential supportive services (such as transportation and child care), as needed to ensure the success of eligible students; and
(9) other activities to improve persistence and retention in postsecondary education.
(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 immediate family 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 section 2912 of title 29, and who meet the minimum qualifications for attendance at a college or university;
(B) supportive and instructional services to improve placement, persistence, and retention in postsecondary education, which include:
(i) personal, academic, career, and economic education or personal finance 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;
(F) internships; and
(G) other essential supportive services (such as transportation and child care) 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;
(B) referring such students to on- or off-campus providers of counseling services, academic assistance, or financial aid, and coordinating such services, assistance, and aid with other non-program services, assistance, and aid, including services, assistance, and aid provided by community-based organizations, which may include mentoring and guidance; and
(C) for students attending two-year institutions of higher education, encouraging the students to transfer to four-year institutions of higher education, where appropriate, and monitoring the rate of transfer of such students.
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.
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)(2) of this title.
The Secretary shall not allocate an amount less than—
(1) $180,000 for each project under the high school equivalency program, and
(2) $180,000 for each project under the college assistance migrant program.
From the amounts made available under subsection (i), the Secretary—
(1) may reserve not more than a total of ½ of one percent for outreach activities, technical assistance, and professional development programs relating to the programs under subsection (a);
(2) for any fiscal year for which the amount appropriated to carry out this section is equal to or greater than $40,000,000, shall, in awarding grants from the remainder of such amounts—
(A) make available not less than 45 percent of such remainder for the high school equivalency programs and not less than 45 percent of such remainder for the college assistance migrant programs;
(B) award the rest of such remainder for high school equivalency programs or college assistance migrant programs based on the number, quality, and promise of the applications; and
(C) consider the need to provide an equitable geographic distribution of such grants; and
(3) for any fiscal year for which the amount appropriated to carry out this section is less than $40,000,000, shall, in awarding grants from the remainder of such amounts make available the same percentage of funds to the high school equivalency program and to the college assistance migrant program as was made available for each such program for the fiscal year preceding the fiscal year for which the grant was made.
The Secretary shall—
(1) annually collect data on persons receiving services authorized under this subpart regarding such persons’ rates of secondary school graduation, entrance into postsecondary education, and completion of postsecondary education, as applicable;
(2) not less often than once every two years, prepare and submit to the authorizing committees a report based on the most recently available data under paragraph (1); and
(3) make such report available to the public.
For the purpose of making grants and contracts under this section, there are authorized to be appropriated $75,000,000 for fiscal year 2009 and such sums as may be necessary for the each of the five succeeding fiscal years.
(Pub. L. 89–329, title IV, §418A, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1341; amended Pub. L. 100–50, §7, June 3, 1987, 101 Stat. 340; Pub. L. 102–325, title IV, §405, July 23, 1992, 106 Stat. 507; Pub. L. 103–382, title III, §391(e)(1), (2), Oct. 20, 1994, 108 Stat. 4022; Pub. L. 105–244, title IV, §408, Oct. 7, 1998, 112 Stat. 1667; Pub. L. 105–277, div. A, §101(f) [title VIII, §405(d)(15)(A), (f)(12)(A)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–421, 2681–431; Pub. L. 110–315, title IV, §408, Aug. 14, 2008, 122 Stat. 3223.)
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 (§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.
A prior section 1070d–2, Pub. L. 89–329, title IV, §418A, as added Pub. L. 96–374, title IV, §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, §418A, as added Pub. L. 94–482, title I, §125, Oct. 12, 1976, 90 Stat. 2096; amended Pub. L. 96–49, §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, §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, §418B, as added Pub. L. 94–482, title I, §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, §101(b), Oct. 3, 1980, 94 Stat. 1383, eff. Oct. 1, 1980.
2008—Subsec. (b)(1)(B)(i). Pub. L. 110–315, §408(1)(A), substituted “immediate family” for “parents”.
Subsec. (b)(3)(B). Pub. L. 110–315, §408(1)(B), inserted “(including preparation for college entrance examinations)” after “junior college program”.
Subsec. (b)(5). Pub. L. 110–315, §408(1)(C), struck out “weekly” before “stipends”.
Subsec. (b)(7). Pub. L. 110–315, §408(1)(D), struck out “and” after semicolon.
Subsec. (b)(8). Pub. L. 110–315, §408(1)(E), inserted “(such as transportation and child care)” after “services” and substituted “; and” for period at end.
Subsec. (b)(9). Pub. L. 110–315, §408(1)(F), added par. (9).
Subsec. (c)(1)(A). Pub. L. 110–315, §408(2)(A)(i), substituted “immediate family” for “parents” and struck out “(or such part's predecessor authority)” before “or section 2912”.
Subsec. (c)(1)(B). Pub. L. 110–315, §408(2)(A)(ii)(I), inserted “to improve placement, persistence, and retention in postsecondary education,” after “services” in introductory provisions.
Subsec. (c)(1)(B)(i). Pub. L. 110–315, §408(2)(A)(ii)(II), substituted “career, and economic education or personal finance” for “and career”.
Subsec. (c)(1)(E) to (G). Pub. L. 110–315, §408(2)(A)(iii)–(vi), struck out “and” at end of subpar. (E), added subpar. (F), redesignated former subpar. (F) as (G) and, in par. (G), substituted “essential supportive services (such as transportation and child care)” for “support services”.
Subsec. (c)(2)(A). Pub. L. 110–315, §408(2)(B)(i), struck out “and” after semicolon.
Subsec. (c)(2)(B). Pub. L. 110–315, §408(2)(B)(ii), substituted “, and coordinating such services, assistance, and aid with other non-program services, assistance, and aid, including services, assistance, and aid provided by community-based organizations, which may include mentoring and guidance; and” for period at end.
Subsec. (c)(2)(C). Pub. L. 110–315, §408(2)(B)(iii), added subpar. (C).
Subsec. (e). Pub. L. 110–315, §408(3), substituted “section 1070a–11(c)(2)” for “section 1070a–11(c)(1)”.
Subsec. (f)(1), (2). Pub. L. 110–315, §408(4), substituted “$180,000” for “$150,000”.
Subsecs. (g) to (i). Pub. L. 110–315, §408(6)–(8), added subsecs. (g) to (i) and struck out former subsecs. (h) and (i), which related to data collection and to authorization of appropriations.
Pub. L. 110–315, §408(5), redesignated subsecs. (g) and (h) as (h) and (i), respectively.
1998—Subsecs. (b)(1)(B)(ii), (c)(1)(A). Pub. L. 105–277, §101(f) [title VIII, §405(f)(12)(A)], struck out “section 1672 of title 29 or” before “section 2912 of title 29”.
Pub. L. 105–277, §101(f) [title VIII, §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, §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, §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, §408(c)(2), added subsec. (g). Former subsec. (g) redesignated (h).
Pub. L. 105–244, §408(b), substituted “1999” for “1993” in pars. (1) and (2).
Subsec. (h). Pub. L. 105–244, §408(c)(1), redesignated subsec. (g) as (h).
1994—Subsec. (b)(1)(B)(ii). Pub. L. 103–382, §391(e)(1), substituted “part C” for “subpart 1 of part D of chapter 1”.
Subsec. (c)(1)(A). Pub. L. 103–382, §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, §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, §405(a)(1)(B), inserted comma after “concerning” and after “obtaining”.
Subsec. (c). Pub. L. 102–325, §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, §405(c), substituted “Five-year” for “Three-year” in heading and “5-year” for “3-year” in text.
Subsec. (g). Pub. L. 102–325, §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.”
Amendment by section 101(f) [title VIII, §405(d)(15)(A)] of Pub. L. 105–277 effective Oct. 21, 1998, and amendment by section 101(f) [title VIII, §405(f)(12)(A)] of Pub. L. 105–277 effective July 1, 2000, see section 101(f) [title VIII, §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.
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.
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.
(Pub. L. 89–329, title IV, §419A, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1343.)
A prior section 1070d–31, Pub. L. 89–329, title IV, §419A, as added Pub. L. 98–558, title VIII, §801(a), Oct. 30, 1984, 98 Stat. 2900; amended Pub. L. 99–145, title XVI, §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.
Section, Pub. L. 89–329, title IV, §419B, as added Pub. L. 99–498, title IV, §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, §419B, as added Pub. L. 98–558, title VIII, §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.
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.
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; and
(2) the State educational agency shall award not less than that number of scholarships for a period of 4 years.
A student awarded a scholarship under this subpart may attend any institution of higher education.
Individuals awarded scholarships under this subpart shall be known as “Byrd Scholars”.
(Pub. L. 89–329, title IV, §419C, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1344; amended Pub. L. 102–325, title IV, §406(b), July 23, 1992, 106 Stat. 508; Pub. L. 103–208, §2(b)(28), Dec. 20, 1993, 107 Stat. 2459; Pub. L. 111–39, title IV, §401(a)(7), July 1, 2009, 123 Stat. 1939.)
A prior section 1070d–33, Pub. L. 89–329, title IV, §419C, as added Pub. L. 98–558, title VIII, §801(a), Oct. 30, 1984, 98 Stat. 2900; amended Pub. L. 99–145, title XVI, §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.
2009—Subsec. (b)(1). Pub. L. 111–39 inserted “and” after semicolon at end.
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.”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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.
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.
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.
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.
Notwithstanding section 1469a of title 48, 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.
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.
A student from the Freely Associated States shall not be eligible to receive a scholarship under this subpart after September 30, 2004.
(Pub. L. 89–329, title IV, §419D, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1344; amended Pub. L. 102–325, title IV, §406(c), July 23, 1992, 106 Stat. 509; Pub. L. 103–208, §2(b)(29), Dec. 20, 1993, 107 Stat. 2460; Pub. L. 105–244, title IV, §409(a), Oct. 7, 1998, 112 Stat. 1668; Pub. L. 111–39, title IV, §401(a)(8), July 1, 2009, 123 Stat. 1939.)
A prior section 1070d–34, Pub. L. 89–329, title IV, §419D, as added Pub. L. 98–558, title VIII, §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.
2009—Subsec. (d). Pub. L. 111–39 made technical amendment to reference in original act which appears in text as reference to section 1469a of title 48.
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.”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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. 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.
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.
(Pub. L. 89–329, title IV, §419E, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1344; amended Pub. L. 102–325, title IV, §406(g)(2), (3), July 23, 1992, 106 Stat. 509.)
A prior section 1070d–35, Pub. L. 89–329, title IV, §419E, as added Pub. L. 98–558, title VIII, §801(a), Oct. 30, 1984, 98 Stat. 2901; amended Pub. L. 99–145, title XVI, §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.
1992—Par. (3). Pub. L. 102–325, §406(g)(2)(A), inserted “and” after semicolon.
Par. (4). Pub. L. 102–325, §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, §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.”
Each student awarded a scholarship under this subpart shall be a graduate of a public or private secondary school (or a home school, whether treated as a home school or a private school under State law) 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.
Each student awarded a scholarship under this subpart must demonstrate outstanding academic achievement and show promise of continued academic achievement.
(Pub. L. 89–329, title IV, §419F, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1344; amended Pub. L. 110–315, title IV, §409(a), Aug. 14, 2008, 122 Stat. 3225.)
A prior section 1070d–36, Pub. L. 89–329, title IV, §419F, as added Pub. L. 98–558, title VIII, §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.
2008—Subsec. (a). Pub. L. 110–315 inserted “(or a home school, whether treated as a home school or a private school under State law)” after “public or private secondary school”.
The State educational agency is authorized to establish the criteria for the selection of scholars under this subpart.
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).
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.
The selection process shall be completed, and the awards made, prior to the end of each secondary school academic year.
(Pub. L. 89–329, title IV, §419G, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1345; amended Pub. L. 102–325, title IV, §406(d), July 23, 1992, 106 Stat. 509; Pub. L. 103–208, §2(b)(30), Dec. 20, 1993, 107 Stat. 2460.)
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.
A prior section 1070d–37, Pub. L. 89–329, title IV, §419G, as added Pub. L. 98–558, title VIII, §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.
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, §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, §406(d)(2), added subsec. (d).
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.
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.
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.
(Pub. L. 89–329, title IV, §419H, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1345; amended Pub. L. 102–325, title IV, §406(e), July 23, 1992, 106 Stat. 509.)
A prior section 1070d–38, Pub. L. 89–329, title IV, §419H, as added Pub. L. 98–558, title VIII, §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.
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”.
Section, Pub. L. 89–329, title IV, §419I, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1345, related to awards ceremony.
A prior section 1070d–39, Pub. L. 89–329, title IV, §419I, as added Pub. L. 98–558, title VIII, §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.
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 and part C of subchapter I of chapter 34 of title 42 or any other provision of Federal law relating to educational assistance.
(Pub. L. 89–329, title IV, §419J, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1345; amended Pub. L. 102–325, title IV, §406(f), July 23, 1992, 106 Stat. 509.)
A prior section 1070d–40, Pub. L. 89–329, title IV, §419J, as added Pub. L. 98–558, title VIII, §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.
1992—Pub. L. 102–325 substituted “Except as provided in section 1087kk of this title, nothing” for “Nothing”.
There are authorized to be appropriated for this subpart such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.
(Pub. L. 89–329, title IV, §419K, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1346; amended Pub. L. 102–325, title IV, §406(h), July 23, 1992, 106 Stat. 509; Pub. L. 105–244, title IV, §409(b), Oct. 7, 1998, 112 Stat. 1668; Pub. L. 110–315, title IV, §409(b), Aug. 14, 2008, 122 Stat. 3225.)
A prior section 1070d–41, Pub. L. 89–329, title IV, §419K, as added Pub. L. 98–558, title VIII, §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.
2008—Pub. L. 110–315 substituted “such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years” for “$45,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years”.
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.”
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.
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, §§407, 408, July 23, 1992, 106 Stat. 510.
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.
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.
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.
Except as provided in clause (ii), a grant under this section shall be awarded in an amount that is not less than $10,000.
For any fiscal year for which the amount appropriated under the authority of subsection (g) is equal to or greater than $20,000,000, a grant under this section shall be awarded in an amount that is not less than $30,000.
The Secretary shall award a grant under this section for a period of 4 years.
Subject to subsection (e)(2) of this section, the Secretary shall make annual grant payments under this section.
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, except that for any fiscal year for which the amount appropriated to carry out this section is equal to or greater than $20,000,000, this sentence shall be applied by substituting “$250,000” for “$350,000”.
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.
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.
For the purpose of this section, the term “low-income student” means a student—
(A) who is eligible to receive a Federal Pell Grant for the award year for which the determination is made; or
(B) who would otherwise be eligible to receive a Federal Pell Grant for the award year for which the determination is made, except that the student fails to meet the requirements of—
(i) section 1070a(c)(1) of this title because the student is enrolled in a graduate or first professional course of study; or
(ii) section 1091(a)(5) of this title because the student is in the United States for a temporary purpose.
The Secretary shall publicize the availability of grants under this section in appropriate periodicals, in addition to publication in the Federal Register, and shall inform appropriate educational organizations of such availability.
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.
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.
Each institution of higher education receiving a grant under this section shall report to the Secretary annually.
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.
The Secretary shall make continuation awards under this section to an institution of higher education only if the Secretary determines, on the basis of the reports 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.
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.
There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.
(Pub. L. 89–329, title IV, §419N, as added Pub. L. 105–244, title IV, §410, Oct. 7, 1998, 112 Stat. 1668; amended Pub. L. 110–315, title IV, §410, Aug. 14, 2008, 122 Stat. 3225.)
A prior section 1070e, Pub. L. 89–329, title IV, §420, as added Pub. L. 99–498, title IV, §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, §407, July 23, 1992, 106 Stat. 510.
Another prior section 1070e, Pub. L. 89–329, title IV, §420, formerly §419, as added Pub. L. 92–318, title X, §1001(a), June 23, 1972, 86 Stat. 375; amended Pub. L. 96–374, title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1503; renumbered Pub. L. 98–558, title VIII, §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, §420A, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1348; amended Pub. L. 100–50, §8, June 3, 1987, 101 Stat. 341; Pub. L. 102–54, §13(g)(2), June 13, 1991, 105 Stat. 275; Pub. L. 102–83, §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, §408, July 23, 1992, 106 Stat. 510.
Another prior section 1070e–1, Pub. L. 89–329, title IV, §420A, formerly §420, as added Pub. L. 92–318, title X, §1001(a), June 23, 1972, 86 Stat. 378; amended Pub. L. 93–380, title VIII, §834(a), Aug. 21, 1974, 88 Stat. 604; Pub. L. 94–482, title I, §126(a)–(c), Oct. 12, 1976, 90 Stat. 2098; Pub. L. 95–336, §6(a), Aug. 4, 1978, 92 Stat. 453; Pub. L. 96–49, §5(a)(7), Aug. 13, 1979, 93 Stat. 352; Pub. L. 96–374, title IV, §407, Oct. 3, 1980, 94 Stat. 1412; Pub. L. 97–300, title I, §183, Oct. 13, 1982, 96 Stat. 1357; renumbered §420A, Pub. L. 98–558, title VIII, §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.
2008—Subsec. (b)(2)(B). Pub. L. 110–315, §410(a), designated existing provisions as cl. (i), inserted heading, substituted “Except as provided in clause (ii), a grant” for “A grant”, and added cl. (ii).
Subsec. (b)(4). Pub. L. 110–315, §410(b), inserted “, except that for any fiscal year for which the amount appropriated to carry out this section is equal to or greater than $20,000,000, this sentence shall be applied by substituting ‘$250,000’ for ‘$350,000’ ” before period at end.
Subsec. (b)(7). Pub. L. 110–315, §410(c), amended par. (7) generally. Prior to amendment, text read as follows: “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.”
Subsec. (b)(8). Pub. L. 110–315, §410(d), added par. (8).
Subsec. (e)(1)(A). Pub. L. 110–315, §410(e)(1), substituted “annually” for “18 months, and 36 months, after receiving the first grant payment under this section”.
Subsec. (e)(2). Pub. L. 110–315, §410(e)(2), substituted “continuation awards” for “the third annual grant payment” and “the reports” for “the 18-month report”.
Subsec. (g). Pub. L. 110–315, §410(f), substituted “such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years” for “$45,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years”.
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.
Subpart 8 of part A of title IV of the Higher Education Act of 1965, which comprised this subpart, was originally added to Pub. L. 89–329, title IV, by Pub. L. 99–498, title IV, §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, which related to learning anytime anywhere partnerships, was set out as having been added by Pub. L. 105–244, title IV, §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.
Section 1070f, Pub. L. 89–329, title IV, §420D, as added Pub. L. 105–244, title IV, §411, Oct. 7, 1998, 112 Stat. 1671, set out congressional findings.
A prior section 1070f, Pub. L. 89–329, title IV, §420B, as added Pub. L. 99–498, title IV, §401(a), Oct. 17, 1986, 100 Stat. 1352; amended Pub. L. 100–50, §9, June 3, 1987, 101 Stat. 341; Pub. L. 102–325, title IV, §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.
Section 1070f–1, Pub. L. 89–329, title IV, §420E, as added Pub. L. 105–244, title IV, §411, Oct. 7, 1998, 112 Stat. 1672, related to the purpose of this subpart and the program authorized.
Section 1070f–2, Pub. L. 89–329, title IV, §420F, as added Pub. L. 105–244, title IV, §411, Oct. 7, 1998, 112 Stat. 1672, related to grant application.
Section 1070f–3, Pub. L. 89–329, title IV, §420G, as added Pub. L. 105–244, title IV, §411, Oct. 7, 1998, 112 Stat. 1672, set out authorized activities for funding.
Section 1070f–4, Pub. L. 89–329, title IV, §420H, as added Pub. L. 105–244, title IV, §411, Oct. 7, 1998, 112 Stat. 1673, provided for a matching requirement limiting Federal funds to not more than 50 percent of the cost of a project.
Section 1070f–5, Pub. L. 89–329, title IV, §420I, as added Pub. L. 105–244, title IV, §411, Oct. 7, 1998, 112 Stat. 1673, required that the Secretary use a peer review process to review applications and make recommendations for funding.
Section 1070f–6, Pub. L. 89–329, title IV, §420J, as added Pub. L. 105–244, title IV, §411, Oct. 7, 1998, 112 Stat. 1673, authorized appropriations for fiscal year 1999 and each of the 4 succeeding fiscal years.
For the purposes of this subpart:
The term “eligible institution” means an institution of higher education, as defined in section 1002 of this title, that the Secretary determines—
(A) provides high quality teacher preparation and professional development services, including extensive clinical experience as a part of pre-service preparation;
(B) is financially responsible;
(C) provides pedagogical course work, or assistance in the provision of such coursework, including the monitoring of student performance, and formal instruction related to the theory and practices of teaching; and
(D) provides supervision and support services to teachers, or assistance in the provision of such services, including mentoring focused on developing effective teaching skills and strategies.
The term “post-baccalaureate” means a program of instruction for individuals who have completed a baccalaureate degree, that does not lead to a graduate degree, and that consists of courses required by a State in order for a teacher candidate 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 such term shall not include any program of instruction offered by an eligible institution that offers a baccalaureate degree in education.
The term “teacher candidate” means a student or teacher described in subparagraph (A) or (B) of section 1070g–2(a)(2) of this title.
(Pub. L. 89–329, title IV, §420L, as added Pub. L. 110–84, title I, §104, Sept. 27, 2007, 121 Stat. 786; amended Pub. L. 110–153, §3(1), Dec. 21, 2007, 121 Stat. 1824.)
2007—Par. (1)(B). Pub. L. 110–153 substituted “responsible” for “sound”.
Subpart effective Oct. 1, 2007, see section 1(c) of Pub. L. 110–84, set out as an Effective Date of 2007 Amendment note under section 1070a of this title.
The Secretary shall pay to each eligible institution such sums as may be necessary to pay to each teacher candidate who files an application and agreement in accordance with section 1070g–2 of this title, and who qualifies under paragraph (2) of section 1070g–2(a) of this title, a TEACH Grant in the amount of $4,000 for each year during which that teacher candidate is in attendance at the institution.
Grants made under paragraph (1) shall be known as “Teacher Education Assistance for College and Higher Education Grants” or “TEACH Grants”.
Not less than 85 percent of any funds provided to an eligible institution under subsection (a) shall be advanced to the eligible institution prior to the start of each payment period and shall be based upon an amount requested by the institution as needed to pay teacher candidates 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, 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.
Nothing in this section shall be interpreted to prohibit the Secretary from paying directly to teacher candidates, in advance of the beginning of the academic term, an amount for which teacher candidates are eligible, in cases where the eligible institution elects not to participate in the disbursement system required by paragraph (1).
Payments under this subpart shall be made, in accordance with regulations promulgated by the Secretary for such purpose, in such manner as will best accomplish the purposes of this subpart. Any disbursement allowed to be made by crediting the teacher candidate's account shall be limited to tuition and fees and, in the case of institutionally-owned housing, room and board. The teacher candidate may elect to have the institution provide other such goods and services by crediting the teacher candidate's account.
In any case where a teacher candidate attends an eligible institution on less than a full-time basis (including a teacher candidate who attends an eligible institution on less than a half-time basis) during any year, the amount of a grant under this subpart for which that teacher candidate is eligible shall be reduced in proportion to the degree to which that teacher candidate is not attending on a full-time basis, in accordance with a schedule of reductions established by the Secretary for the purposes of this subpart, 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.
The amount of a grant awarded under this subpart, in combination with Federal assistance and other assistance the student may receive, shall not exceed the cost of attendance (as defined in section 1087ll of this title) at the eligible institution at which that teacher candidate is in attendance.
The period during which an undergraduate or post-baccalaureate student may receive grants under this subpart shall be the period required for the completion of the first undergraduate baccalaureate or post-baccalaureate course of study being pursued by the teacher candidate at the eligible institution at which the teacher candidate is in attendance, except that—
(A) any period during which the teacher candidate is enrolled in a noncredit or remedial course of study as described in paragraph (3) shall not be counted for the purpose of this paragraph; and
(B) the total amount that a teacher candidate may receive under this subpart for undergraduate or post-baccalaureate study shall not exceed $16,000.
The period during which a graduate student may receive grants under this subpart shall be the period required for the completion of a master's degree course of study pursued by the teacher candidate at the eligible institution at which the teacher candidate is in attendance, except that the total amount that a teacher candidate may receive under this subpart for graduate study shall not exceed $8,000.
Nothing in this section shall be construed to exclude from eligibility courses of study which are noncredit or remedial in nature (including courses in English language acquisition) which are determined by the eligible institution to be necessary to help the teacher candidate be prepared for the pursuit of a first undergraduate baccalaureate or post-baccalaureate degree or certificate or, in the case of courses in English language instruction, to be necessary to enable the teacher candidate to utilize already existing knowledge, training, or skills. Nothing in this section shall be construed to exclude from eligibility programs of study abroad that are approved for credit by the home institution at which the teacher candidate is enrolled.
(Pub. L. 89–329, title IV, §420M, as added Pub. L. 110–84, title I, §104, Sept. 27, 2007, 121 Stat. 787; amended Pub. L. 110–153, §3(2), Dec. 21, 2007, 121 Stat. 1824.)
2007—Subsecs. (a)(1), (c)(1). Pub. L. 110–153, §3(2)(A), substituted “year” for “academic year”.
Subsec. (c)(2). Pub. L. 110–153, §3(2)(B), substituted “other assistance the student may receive” for “other student assistance” and struck out at end “If, with respect to any teacher candidate for any academic year, it is determined that the amount of a TEACH Grant exceeds the cost of attendance for that year, the amount of the TEACH Grant shall be reduced until such grant does not exceed the cost of attendance at the eligible institution.”
The Secretary shall periodically set dates by which teacher candidates shall file applications for grants under this subpart. Each teacher candidate desiring a grant under this subpart for any year shall file an application containing such information and assurances as the Secretary may determine necessary to enable the Secretary to carry out the functions and responsibilities of this subpart.
Each application submitted under paragraph (1) shall contain such information as is necessary to demonstrate that—
(A) if the applicant is an enrolled student—
(i) the student is an eligible student for purposes of section 1091 of this title;
(ii) the student—
(I) has a grade point average that is determined, under standards prescribed by the Secretary, to be comparable to a 3.25 average on a zero to 4.0 scale, except that, if the student is in the first year of a program of undergraduate education, such grade point average shall be determined on the basis of the student's cumulative secondary school grade point average; or
(II) displayed high academic aptitude by receiving a score above the 75th percentile on at least one of the batteries in an undergraduate, post-baccalaureate, or graduate school admissions test; and
(iii) the student is completing coursework and other requirements necessary to begin a career in teaching, or plans to complete such coursework and requirements prior to graduating; or
(B) if the applicant is a current or prospective teacher applying for a grant to obtain a graduate degree—
(i) the applicant is a teacher or a retiree from another occupation with expertise in a field in which there is a shortage of teachers, such as mathematics, science, special education, English language acquisition, or another high-need subject; or
(ii) the applicant is or was a teacher who is using high-quality alternative certification routes, such as Teach for America, to get certified.
Each application under subsection (a) shall contain or be accompanied by an agreement by the applicant that—
(1) the applicant will—
(A) serve as a full-time teacher for a total of not less than 4 academic years within 8 years after completing the course of study for which the applicant received a TEACH Grant under this subpart;
(B) teach in a school described in section 1087ee(a)(2)(A) of this title;
(C) teach in any of the following fields—
(i) mathematics;
(ii) science;
(iii) a foreign language;
(iv) bilingual education;
(v) special education;
(vi) as a reading specialist; or
(vii) another field documented as high-need by the Federal Government, State government, or local educational agency, and approved by the Secretary;
(D) submit evidence of such employment in the form of a certification by the chief administrative officer of the school upon completion of each year of such service; and
(E) comply with the requirements for being a highly qualified teacher as defined in section 7801 of this title;
(2) in the event that the applicant is determined to have failed or refused to carry out such service obligation, the sum of the amounts of any TEACH Grants received by such applicant will be treated as a loan and collected from the applicant in accordance with subsection (c) and the regulations thereunder; and
(3) contains, or is accompanied by, a plain-language disclosure form developed by the Secretary that clearly describes the nature of the TEACH Grant award, the service obligation, and the loan repayment requirements that are the consequence of the failure to complete the service obligation.
In the event that any recipient of a grant under this subpart fails or refuses to comply with the service obligation in the agreement under subsection (b), the sum of the amounts of any TEACH Grants received by such recipient shall, upon a determination of such a failure or refusal in such service obligation, be treated as a Federal Direct Unsubsidized Stafford Loan under part C, and shall be subject to repayment, together with interest thereon accruing from the date of the grant award, in accordance with terms and conditions specified by the Secretary in regulations under this subpart.
If a recipient of an initial grant under this subpart has acquired an academic degree, or expertise, in a field that was, at the time of the recipient's application for that grant, designated as high need in accordance with subsection (b)(1)(C)(vii), but is no longer so designated, the grant recipient may fulfill the service obligation described in subsection (b)(1) by teaching in that field.
The Secretary shall establish, by regulation, categories of extenuating circumstances under which a recipient of a grant under this subpart who is unable to fulfill all or part of the recipient's service obligation may be excused from fulfilling that portion of the service obligation.
(Pub. L. 89–329, title IV, §420N, as added Pub. L. 110–84, title I, §104, Sept. 27, 2007, 121 Stat. 788; amended Pub. L. 110–315, title IV, §412(a)(1), Aug. 14, 2008, 122 Stat. 3226.)
2008—Subsec. (b)(3). Pub. L. 110–315, §412(a)(1)(A), added par. (3).
Subsec. (d). Pub. L. 110–315, §412(a)(1)(B), added subsec. (d).
Pub. L. 110–315, title IV, §412(b), Aug. 14, 2008, 122 Stat. 3227, provided that: “The amendments made by subsection (a)(1) [amending this section] shall take effect on July 1, 2010.”
Beginning on July 1, 2008, there shall be available to the Secretary to carry out this subpart, from funds not otherwise appropriated, such sums as may be necessary to provide TEACH Grants in accordance with this subpart to each eligible applicant.
(Pub. L. 89–329, title IV, §420O, as added Pub. L. 110–84, title I, §104, Sept. 27, 2007, 121 Stat. 790.)
Not later than two years after August 14, 2008, and every two years thereafter, the Secretary shall prepare and submit to the authorizing committees a report on TEACH grants with respect to the schools and students served by recipients of such grants. Such report shall take into consideration information related to—
(1) the number of TEACH grant recipients;
(2) the degrees obtained by such recipients;
(3) the location, including the school, local educational agency, and State, where the recipients completed the service agreed to under section 1070g–2(b) of this title and the subject taught;
(4) the duration of such service; and
(5) any other data necessary to conduct such evaluation.
(Pub. L. 89–329, title IV, §420P, as added Pub. L. 110–315, title IV, §412(a)(2), Aug. 14, 2008, 122 Stat. 3227.)
The term “eligible veteran's dependent” means a dependent or an independent student—
(1) whose parent or guardian was a member of the Armed Forces of the United States and died as a result of performing military service in Iraq or Afghanistan after September 11, 2001; and
(2) who, at the time of the parent or guardian's death, was—
(A) less than 24 years of age; or
(B) enrolled at an institution of higher education on a part-time or full-time basis.
The Secretary shall award a grant to each eligible veteran's dependent to assist in paying the eligible veteran's dependent's cost of attendance at an institution of higher education.
Grants made under this section shall be known as “Iraq and Afghanistan Service Grants”.
No eligible veteran's dependent may receive a grant under both this section and section 1070a of this title.
The Secretary shall award grants under this section in the same manner, and with the same terms and conditions, including the length of the period of eligibility, as the Secretary awards Federal Pell Grants under section 1070a of this title, except that—
(1) the award rules and determination of need applicable to the calculation of Federal Pell Grants, shall not apply to grants made under this section;
(2) the provisions of subsection (a)(3), subsection (b)(1), the matter following subsection (b)(2)(A)(v),1 subsection (b)(3), and subsection (f), of section 1070a of this title shall not apply; and
(3) a grant made under this section to an eligible veteran's dependent for any award year shall equal the maximum Federal Pell Grant available for that award year, except that such a grant under this section—
(A) shall not exceed the cost of attendance of the eligible veteran's dependent for that award year; and
(B) shall be adjusted to reflect the attendance by the eligible veteran's dependent on a less than full-time basis in the same manner as such adjustments are made under section 1070a of this title.
For purposes of determinations of need under part E, a grant awarded under this section shall not be treated as estimated financial assistance as described in sections 1087kk(3) and 1087vv(j) of this title.
There are authorized to be appropriated, and there are appropriated, out of any money in the Treasury not otherwise appropriated, for the Secretary to carry out this section, such sums as may be necessary for fiscal year 2010 and each succeeding fiscal year.
(Pub. L. 89–329, title IV, §420R, as added Pub. L. 111–39, title IV, §401(a)(9), July 1, 2009, 123 Stat. 1939.)
Section 1070a(b)(2)(A) of this title, referred to in subsec. (d)(2), as originally enacted, contained cls. (i) to (vi) followed by concluding provisions. Section 1070a(b)(2)(A) of this title was amended generally by section 2101(a)(1) of Pub. L. 111–152 and, as so amended, no longer contains either a cl. (v) or concluding provisions.
Pub. L. 111–39, title IV, §401(b), July 1, 2009, 123 Stat. 1940, provided that: “The amendment made by subsection (a)(9) [enacting this subpart] shall take effect on July 1, 2010.”
1 See References in Text note below.
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, §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.
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.
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.
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,
(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, and
(6) there is authorized to be appropriated, and there are appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for the purpose of carrying out section 1072(c)(7) of this title.
Sums appropriated under paragraphs (1), (2), (4), and (5) of this subsection shall remain available until expended, except that no sums may be expended after June 30, 2010, with respect to loans under this part for which the first disbursement is after such date. 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.
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”.
Notwithstanding paragraphs (1) through (6) of subsection (b) or any other provision of law—
(1) no new loans (including consolidation loans) may be made or insured under this part after June 30, 2010; and
(2) no funds are authorized to be appropriated, or may be expended, under this chapter and part C of subchapter I of chapter 34 of title 42 or any other Act to make or insure loans under this part (including consolidation loans) for which the first disbursement is after June 30, 2010,
except as expressly authorized by an Act of Congress enacted after March 30, 2010.
(Pub. L. 89–329, title IV, §421, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1353; amended Pub. L. 100–297, title II, §2601(a), Apr. 28, 1988, 102 Stat. 330; Pub. L. 100–369, §8, July 18, 1988, 102 Stat. 837; Pub. L. 102–325, title IV, §411(a)(2), (c), July 23, 1992, 106 Stat. 510, 511; Pub. L. 105–244, title IV, §411, Oct. 7, 1998, 112 Stat. 1673; Pub. L. 109–171, title VIII, §8004(a), Feb. 8, 2006, 120 Stat. 158; Pub. L. 110–227, §6(a), May 7, 2008, 122 Stat. 746; Pub. L. 111–152, title II, §2201, Mar. 30, 2010, 124 Stat. 1074.)
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.
Another section 411 of Pub. L. 105–244 enacted subpart 8 (§1070f et seq.) of part A of this subchapter.
A prior section 1071, Pub. L. 89–329, title IV, §421, Nov. 8, 1965, 79 Stat. 1236; Pub. L. 90–460, §§2(b)(3), 3(a), Aug. 3, 1968, 82 Stat. 635, 636; Pub. L. 90–575, title I, §§113(b)(1), 114(a), 119(b), Oct. 16, 1968, 82 Stat. 1021, 1027; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2099; Pub. L. 95–43, §1(a)(8)–(10), June 15, 1977, 91 Stat. 213; Pub. L. 96–374, title XIII, §1391(a)(1), (2), Oct. 3, 1980, 94 Stat. 1503; Pub. L. 98–79, §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.
2010—Subsec. (b). Pub. L. 111–152, §2201(1), inserted “, except that no sums may be expended after June 30, 2010, with respect to loans under this part for which the first disbursement is after such date” after “expended” in concluding provisions.
Subsec. (d). Pub. L. 111–152, §2201(2), added subsec. (d).
2008—Subsec. (b)(6). Pub. L. 110–227 added par. (6).
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, §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, §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).
Pub. L. 110–227, §6(b), May 7, 2008, 122 Stat. 746, provided that: “The amendments made by subsection (a) [amending this section] shall take effect on the date of enactment of this Act [May 7, 2008].”
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. 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.
Pub. L. 100–297, title VI, §6303, Apr. 28, 1988, 102 Stat. 431, as amended by Pub. L. 100–351, June 27, 1988, 102 Stat. 661; Pub. L. 106–400, §2, Oct. 30, 2000, 114 Stat. 1675, provided that:
“(a)
“(b)
“(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 [§§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.”
Section 402(b)–(d) of Pub. L. 99–498, as amended by Pub. L. 100–50, §22(b), June 3, 1987, 101 Stat. 361, provided that:
“(b)
“(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)
“(d)
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, §6(b)(2), Oct. 31, 1998, 112 Stat. 3128.
Sections 1311 to 1314 of Pub. L. 99–498, as amended by Pub. L. 100–50, §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, §6(a), Oct. 31, 1998, 112 Stat. 3127.
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.
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.
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.
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.
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.
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.
(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.
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.
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.
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.
(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.
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).
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.
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.
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.
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.
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.
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.
(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.
Violation of any direction issued by the Secretary under this subsection may be subject to the penalties described in section 1097 of this title.
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.
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.
Funds recalled by the Secretary under this subsection shall be deposited in the Treasury.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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).
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.
For the purposes of this subsection:
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.
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.
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.
Funds recalled by the Secretary under this subsection shall be deposited in the Treasury.
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:
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.
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.
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.
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.
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.
(Pub. L. 89–329, title IV, §422, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1354; amended Pub. L. 100–203, title III, §§3001(a), 3002(a), Dec. 22, 1987, 101 Stat. 1330–36, 1330–38; Pub. L. 102–325, title IV, §§412, 416(p)(8), July 23, 1992, 106 Stat. 511, 527; Pub. L. 103–66, title IV, §§4041(a), (2)(A), 4042, Aug. 10, 1993, 107 Stat. 354, 357; Pub. L. 103–208, §2(c)(1), Dec. 20, 1993, 107 Stat. 2460; Pub. L. 105–33, title VI, §6101(a), Aug. 5, 1997, 111 Stat. 648; Pub. L. 105–244, title IV, §412, Oct. 7, 1998, 112 Stat. 1673.)
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.
A prior section 1072, Pub. L. 89–329, title IV, §422, Nov. 8, 1965, 79 Stat. 1236; Pub. L. 89–752, §11, Nov. 3, 1966, 80 Stat. 1243; Pub. L. 90–575, title I, §114(b), (c), Oct. 16, 1968, 82 Stat. 1021, 1022; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2100; Pub. L. 95–43, §1(a)(11)–(13), June 15, 1977, 91 Stat. 213, 214; Pub. L. 95–561, title XIII, §1322(a), Nov. 1, 1978, 92 Stat. 2363; Pub. L. 96–374, title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1503; Pub. L. 99–272, title XVI, §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.
1998—Subsec. (a)(2). Pub. L. 105–244, §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, §412(2)(A), substituted “written, electronic,” for “written”.
Subsec. (c)(7)(A). Pub. L. 105–244, §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, §412(2)(C), substituted “section 1078(c)(9)(F)(v)” for “section 1078(c)(10)(F)(v)”.
Subsec. (g)(1). Pub. L. 105–244, §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, §412(4), added subsec. (i).
1997—Subsec. (h). Pub. L. 105–33 added subsec. (h).
1993—Subsec. (c)(7). Pub. L. 103–66, §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, §4042, added subsec. (g).
1992—Subsec. (a)(2). Pub. L. 102–325, §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, §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, §412(2), added subsecs. (e) and (f).
1987—Subsec. (e). Pub. L. 100–203, §3002(a), struck out subsec. (e) which related to reduction of excess cash reserves.
Pub. L. 100–203, §3001(a), added subsec. (e).
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. 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 3002(a) of Pub. L. 100–203 provided that the amendment made by that section 3002(a) is effective Sept. 30, 1989.
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.
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.
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.
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), and 1087 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
(Pub. L. 89–329, title IV, §422A, as added Pub. L. 105–244, title IV, §413(a), Oct. 7, 1998, 112 Stat. 1674; amended Pub. L. 110–315, title IV, §438(a)(1), Aug. 14, 2008, 122 Stat. 3258.)
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, §8014(d)(3)(A), (B), Feb. 8, 2006, 120 Stat. 170.
2008—Subsec. (d)(1). Pub. L. 110–315 substituted “and 1087” for “1087, and 1087–2(q)”.
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.
1 See References in Text note below.
Each guaranty agency shall, not later than 60 days after October 7, 1998, establish a fund designated as the Operating Fund.
Funds deposited into the Operating Fund shall be invested at the discretion of the guaranty agency in accordance with prudent investor standards.
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.
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.
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.
For purposes of this subsection:
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.
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.
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.
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.
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.
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.
(Pub. L. 89–329, title IV, §422B, as added Pub. L. 105–244, title IV, §413(b), Oct. 7, 1998, 112 Stat. 1677.)
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, §8014(d)(3)(A), (B), Feb. 8, 2006, 120 Stat. 170.
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.
1 See References in Text note below.
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.
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.
(Pub. L. 89–329, title IV, §423, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1358.)
A prior section 1073, Pub. L. 89–329, title IV, §423, Nov. 8, 1965, 79 Stat. 1237; Pub. L. 90–575, title I, §119(a), Oct. 16, 1968, 82 Stat. 1026; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2103; Pub. L. 95–43, §1(a)(14), June 15, 1977, 91 Stat. 214; Pub. L. 96–374, title XIII, §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.
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, for each of the succeeding fiscal years ending prior to October 1, 2009, and for the period from October 1, 2009, to June 30, 2010, for loans first disbursed on or before June 30, 2010.
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.
(Pub. L. 89–329, title IV, §424, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1358; amended Pub. L. 102–325, title IV, §411(b)(1), July 23, 1992, 106 Stat. 510; Pub. L. 105–33, title VI, §6104(1), Aug. 5, 1997, 111 Stat. 652; Pub. L. 105–244, title IV, §414, Oct. 7, 1998, 112 Stat. 1679; Pub. L. 109–171, title VIII, §8004(b)(1), Feb. 8, 2006, 120 Stat. 158; Pub. L. 110–315, title IV, §421, Aug. 14, 2008, 122 Stat. 3227; Pub. L. 111–152, title II, §2202, Mar. 30, 2010, 124 Stat. 1074.)
A prior section 1074, Pub. L. 89–329, title IV, §424, Nov. 8, 1965, 79 Stat. 1237; Pub. L. 90–460, §1(a)(1), Aug. 3, 1968, 82 Stat. 634; Pub. L. 90–575, title I, §112(a), Oct. 16, 1968, 82 Stat. 1020; Pub. L. 92–318, title I, §132(a), June 23, 1972, 86 Stat. 261; Pub. L. 94–328, §2(a), June 30, 1976, 90 Stat. 727; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2103; Pub. L. 96–374, title IV, §411(a), title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1415, 1503; Pub. L. 99–272, title XVI, §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.
2010—Subsec. (a). Pub. L. 111–152 substituted “September 30, 1976, for each of the succeeding fiscal years ending prior to October 1, 2009, and for the period from October 1, 2009, to June 30, 2010, for loans first disbursed on or before June 30, 2010.” for “September 30, 1976, and for each of the succeeding fiscal years ending prior to October 1, 2014. 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, 2018.”
2008—Subsec. (a). Pub. L. 110–315 substituted “October 1, 2014” for “October 1, 2012” and “September 30, 2018” for “September 30, 2016”.
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”.
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. 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.
(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) $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); 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) $4,500; 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.
(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.
(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.
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.
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.
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.
(Pub. L. 89–329, title IV, §425, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1359; amended Pub. L. 100–50, §10(a), June 3, 1987, 101 Stat. 341; Pub. L. 102–325, title IV, §413, July 23, 1992, 106 Stat. 512; Pub. L. 103–208, §2(c)(2), (3), Dec. 20, 1993, 107 Stat. 2460, 2461; Pub. L. 105–244, title IV, §415, Oct. 7, 1998, 112 Stat. 1679; Pub. L. 109–171, title VIII, §8005(a), Feb. 8, 2006, 120 Stat. 158.)
Section 1078–1 of this title, referred to in subsec. (a)(2)(A), was repealed by Pub. L. 103–66, title IV, §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, §418, Oct. 7, 1998, 112 Stat. 1691.
A prior section 1075, Pub. L. 89–329, title IV, §425, Nov. 8, 1965, 79 Stat. 1238; Pub. L. 90–575, title I, §§116(b)(1), 120(a)(2), Oct. 16, 1968, 82 Stat. 1023, 1027; Pub. L. 92–318, title I, §§132A(a), 132B(a), June 23, 1972, 86 Stat. 261, 262; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2104; Pub. L. 95–43, §1(a)(15)–(17), June 15, 1977, 91 Stat. 214; Pub. L. 95–566, §5(b)(2), Nov. 1, 1978, 92 Stat. 2403; Pub. L. 96–374, title IV, §412(a), (b), (f), title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1416, 1417, 1503; Pub. L. 97–35, title V, §535(a), (b), Aug. 13, 1981, 95 Stat. 455; Pub. L. 99–272, title XVI, §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.
2006—Subsec. (a)(1)(A)(i)(I). Pub. L. 109–171, §8005(a)(1), substituted “$3,500” for “$2,625”.
Subsec. (a)(1)(A)(ii)(I). Pub. L. 109–171, §8005(a)(2), substituted “$4,500” for “$3,500”.
1998—Subsec. (a)(1)(A)(i)(I). Pub. L. 105–244, §415(1)(A), inserted “and” after semicolon.
Subsec. (a)(1)(A)(i)(II), (III). Pub. L. 105–244, §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, §415(2), inserted “and” after semicolon at end.
1993—Subsec. (a)(1)(A)(ii), (iii). Pub. L. 103–208, §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, §2(c)(2)(B), substituted a period for semicolon at end.
Subsec. (a)(1)(C). Pub. L. 103–208, §2(c)(3), added subpar. (C).
1992—Subsec. (a)(1)(A). Pub. L. 102–325, §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, §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, §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, §10(a)(2), inserted “, excluding loans made under section 1078–1 or 1078–2 of this title” after “graduate or professional student)”.
Pub. L. 109–171, title VIII, §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.”
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 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.
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.
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.
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.
1 See References in Text note below.
2 So in original. There is no opening parenthesis.
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.
(Pub. L. 89–329, title IV, §426, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1361.)
A prior section 1076, Pub. L. 89–329, title IV, §426, Nov. 8, 1965, 79 Stat. 1238; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2106; Pub. L. 96–374, title XIII, §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.
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 consumer reporting agencies 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 consumer reporting agencies;
(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.
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.
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).
The lender shall obtain the borrower's driver's license number, if any, at the time of application for the loan.
(Pub. L. 89–329, title IV, §427, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1361; amended Pub. L. 100–50, §10(b), (c), June 3, 1987, 101 Stat. 341; Pub. L. 100–369, §§5(b)(1), 7(c), 11(a), July 18, 1988, 102 Stat. 836–838; Pub. L. 101–239, title II, §§2002(a)(1), 2004(b)(2), Dec. 19, 1989, 103 Stat. 2111, 2116; Pub. L. 102–164, title VI, §§601(a), 602(a), Nov. 15, 1991, 105 Stat. 1065, 1066; Pub. L. 102–325, title IV, §414, July 23, 1992, 106 Stat. 513; Pub. L. 103–208, §2(c)(4), Dec. 20, 1993, 107 Stat. 2461; Pub. L. 110–315, title IV, §432(b)(1), Aug. 14, 2008, 122 Stat. 3246.)
A prior section 1077, Pub. L. 89–329, title IV, §427, Nov. 8, 1965, 79 Stat. 1238; Pub. L. 89–794, title XI, §1101(b)(1), Nov. 8, 1966, 80 Stat. 1476; Pub. L. 90–460, §2(a)(1), Aug. 3, 1968, 82 Stat. 635; Pub. L. 90–575, title I, §§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, §§132B(b), 132C(c), June 23, 1972, 86 Stat. 262, 263; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2106; Pub. L. 95–43, §1(a)(9), (18), June 15, 1977, 91 Stat. 213, 214; Pub. L. 95–566, §5(a)(1), Nov. 1, 1978, 92 Stat. 2403; Pub. L. 96–374, title IV, §§413(a), (c), 415(a)(2), (b)(1), 416(a)(2), 423(a)(1), title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1417–1421, 1432, 1503; Pub. L. 97–35, title V, §537(b)(1), (d)(2), (e)(1), Aug. 13, 1981, 95 Stat. 456, 457; Pub. L. 98–79, §10[(a)], Aug. 15, 1983, 97 Stat. 484; Pub. L. 99–272, title XVI, §§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.
2008—Subsec. (a)(2)(G)(i). Pub. L. 110–315, §432(b)(1)(A), substituted “consumer reporting agencies” for “credit bureau organizations”.
Subsec. (a)(2)(G)(ii). Pub. L. 110–315, §432(b)(1)(B), substituted “consumer reporting agencies” for “organizations”.
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, §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, §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, §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, §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, §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, §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, §602(a), added subsec. (d).
1989—Subsec. (a)(2)(C)(i). Pub. L. 101–239, §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, §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, §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, §11(a), inserted “after January 1, 1986,” after “service”.
Subsec. (b)(2). Pub. L. 100–369, §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, §10(b)(1), inserted “nonprofit” before “private”.
Subsec. (a)(2)(C)(vii). Pub. L. 100–50, §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, §10(c), substituted “$1,000 or more” for “more than $1,000”.
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.
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.
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.”
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.
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.
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.
1 So in original. The comma probably should not appear.
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.
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.
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.
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.
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.
(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.
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.
Notwithstanding subsections (a), (b), and (d) 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) 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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
(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.
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.
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”.
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.
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.
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.
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”.
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”.
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.
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.
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, and before July 1, 2010, the applicable rate of interest shall be 6.8 percent on the unpaid principal balance of the loan.
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, and before July 1, 2010, the applicable rate of interest shall be 8.5 percent on the unpaid principal balance of the loan.
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, and that was disbursed before July 1, 2010, 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.
Notwithstanding subsection (h) and paragraph (1) of this subsection, with respect to any loan to an undergraduate student made, insured, or guaranteed under this part (other than a loan made pursuant to section 1078–2, 1078–3, or 1078–8 of this title) for which the first disbursement is made on or after July 1, 2006, and before July 1, 2010, the applicable rate of interest shall be as follows:
(A) For a loan for which the first disbursement is made on or after July 1, 2006, and before July 1, 2008, 6.8 percent on the unpaid principal balance of the loan.
(B) For a loan for which the first disbursement is made on or after July 1, 2008, and before July 1, 2009, 6.0 percent on the unpaid principal balance of the loan.
(C) For a loan for which the first disbursement is made on or after July 1, 2009, and before July 1, 2010, 5.6 percent on the unpaid principal balance of the loan.
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.
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.
(Pub. L. 89–329, title IV, §427A, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1364; amended Pub. L. 100–50, §10(d)(1), June 3, 1987, 101 Stat. 342; Pub. L. 102–325, title IV, §415, July 23, 1992, 106 Stat. 514; Pub. L. 103–66, title IV, §4101, Aug. 10, 1993, 107 Stat. 364; Pub. L. 103–208, §2(c)(5)–(10), Dec. 20, 1993, 107 Stat. 2461; Pub. L. 105–178, title VIII, §8301(a)(1), June 9, 1998, 112 Stat. 496; Pub. L. 105–244, title IV, §416(a)(1), Oct. 7, 1998, 112 Stat. 1679; Pub. L. 106–554, §1(a)(1) [title III, §318(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–49; Pub. L. 107–139, §1(a)(1), (c), Feb. 8, 2002, 116 Stat. 8, 9; Pub. L. 109–171, title VIII, §8006(a), Feb. 8, 2006, 120 Stat. 159; Pub. L. 110–84, title II, §201(a)(1), Sept. 27, 2007, 121 Stat. 790; Pub. L. 111–152, title II, §2203, Mar. 30, 2010, 124 Stat. 1074.)
Section 1078–1 of this title, referred to in subsecs. (c) to (e)(1), was repealed by Pub. L. 103–66, title IV, §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, §418, Oct. 7, 1998, 112 Stat. 1691.
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.
A prior section 1077a, Pub. L. 89–329, title IV, §427A, as added Pub. L. 96–374, title IV, §415(a)(1), Oct. 3, 1980, 94 Stat. 1419; amended Pub. L. 97–35, title V, §534(a)(1), Aug. 13, 1981, 95 Stat. 454; Pub. L. 98–79, §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.
2010—Subsec. (l). Pub. L. 111–152, §2203(1), inserted “and before July 1, 2010” in heading.
Subsec. (l)(1), (2). Pub. L. 111–152, §2203(2), (3), inserted “and before July 1, 2010,” after “July 1, 2006,”.
Subsec. (l)(3). Pub. L. 111–152, §2203(4), inserted “and that was disbursed before July 1, 2010,” after “July 1, 2006,”.
Subsec. (l)(4). Pub. L. 111–152, §2203(5)(A), substituted “July 1, 2010” for “July 1, 2012” in introductory provisions.
Subsec. (l)(4)(D), (E). Pub. L. 111–152, §2203(5)(B), struck out subpars. (D) and (E) which read as follows:
“(D) For a loan for which the first disbursement is made on or after July 1, 2010, and before July 1, 2011, 4.5 percent on the unpaid principal balance of the loan.
“(E) For a loan for which the first disbursement is made on or after July 1, 2011, and before July 1, 2012, 3.4 percent on the unpaid principal balance of the loan.”
2007—Subsec. (l)(4). Pub. L. 110–84 added par. (4).
2006—Subsec. (l)(2). Pub. L. 109–171 substituted “8.5 percent” for “7.9 percent”.
2002—Subsec. (k). Pub. L. 107–139, §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, §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, §8301(a)(1)(B), added subsec. (j). Former subsec. (j) redesignated (k).
Subsec. (k). Pub. L. 105–244, §416(a)(1)(B), added subsec. (k). Former subsec. (k) redesignated (l).
Pub. L. 105–178, §8301(a)(1)(A), redesignated subsec. (j) as (k). Former subsec. (k) redesignated (l).
Subsec. (l). Pub. L. 105–244, §416(a)(1)(A), redesignated subsec. (k) as (l). Former subsec. (l) redesignated (m).
Pub. L. 105–178, §8301(a)(1)(A), redesignated subsec. (k) as (l).
Subsec. (m). Pub. L. 105–244, §416(a)(1)(A), redesignated subsec. (l) as (m).
1993—Subsec. (c)(4)(E). Pub. L. 103–66, §4101(1), added subpar. (E).
Subsec. (e)(1). Pub. L. 103–208, §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, §4101(3), added subsecs. (f) to (h). Former subsecs. (f) to (h) redesignated (i) to (k), respectively.
Subsec. (i). Pub. L. 103–66, §4101(2), redesignated subsec. (f) as (i).
Subsec. (i)(1)(B). Pub. L. 103–208, §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, §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, §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, §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, §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, §2(c)(10), added par. (7). See Codification note above.
Subsecs. (j), (k). Pub. L. 103–66, §4101(2), redesignated subsecs. (g) and (h) as (j) and (k), respectively.
1992—Subsec. (c)(4)(D). Pub. L. 102–325, §415(a), added subpar. (D).
Subsec. (e). Pub. L. 102–325, §415(c)(2), added subsec. (e). Former subsec. (e) redesignated (f).
Pub. L. 102–325, §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, §415(c)(1), redesignated subsecs. (e) to (g) as (f) to (h), respectively.
1987—Subsec. (c)(4)(A). Pub. L. 100–50, §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, §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.”
Amendment by Pub. L. 110–84 effective Oct. 1, 2007, see section 1(c) of Pub. L. 110–84, set out as a note under section 1070a of this title.
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. 105–244, title IV, §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.”
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.
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.
1 See References in Text note below.
Each student who has received a loan for study at an eligible institution for which the first disbursement is made before July 1, 2010, and—
(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).
(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;
(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 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; plus
(II) other scholarship, grant, or loan assistance, but excluding—
(aa) 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
(bb) any veterans’ education benefits as defined in section 1087vv(c) of this title; 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.
(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 date the student ceases to carry at least one-half the normal full-time academic workload (as determined by the institution), 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.
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.
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 June 30, 2010.
Nothing in this chapter and part C of subchapter I of chapter 34 of title 42 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.
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.
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) $3,500, 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) $4,500; 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 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, 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;
(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);
(ii) for any loan for which the first disbursement of principal is made on or after July 1, 2006, and before July 1, 2010, 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, and that are first disbursed before July 1, 2010, 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), (iii), or (v) 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 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, 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) 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,
and for the 180-day period following the demobilization date for the service described in subclause (I) or (II); 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).2
(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 1 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—
(I) receipt of a request for deferment from the borrower and documentation of the borrower's eligibility for the deferment;
(II) receipt of a newly completed loan application that documents the borrower's eligibility for a deferment;
(III) receipt of student status information documenting that the borrower is enrolled on at least a half-time basis; or
(IV) the lender's confirmation of the borrower's half-time enrollment status through use of the National Student Loan Data System, if the confirmation is requested by the institution of higher education;
(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; and
(iii) the lender shall, at the time the lender grants a deferment to a borrower who received a loan under section 1078–8 of this title and is eligible for a deferment under subparagraph (M) of this paragraph, provide information to the borrower to assist the borrower in understanding the impact of the capitalization of interest on the borrower's loan principal and on the total amount of interest to be paid during the life of the loan.
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;
(IV) the telephone numbers of both the transferor and the transferee;
(V) the effective date of the transfer;
(VI) the date on which the current servicer (as of the date of the notice) will stop accepting payments; and
(VII) the date on which the new servicer will begin accepting payments; 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.
A guaranty agency shall not—
(A) offer, directly or indirectly, premiums, payments, stock or other securities, prizes, travel, entertainment expenses, tuition payment or reimbursement, or other inducements to—
(i) any institution of higher education, any employee of an institution of higher education, or any individual or entity in order to secure applicants for loans made under this part; or
(ii) 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 as part of the guaranty agency's lender-of-last-resort program pursuant to subsection (j)), for the purpose of securing the designation of the guaranty agency as the insurer of such loans;
(B) conduct unsolicited mailings, by postal or electronic means, of student loan application forms to students enrolled in secondary schools or postsecondary educational institutions, or to the families of such students, except that applications may be mailed, by postal or electronic means, to students or borrowers who have previously received loans guaranteed under this part by the guaranty agency;
(C) perform, for an institution of higher education participating in a program under this subchapter and part C of subchapter I of chapter 34 of title 42, any function that such institution is required to perform under this subchapter and part C of subchapter I of chapter 34 of title 42, except that the guaranty agency may perform functions on behalf of such institution in accordance with section 1092(b) or 1092(l) of this title;
(D) pay, on behalf of an institution of higher education, another person to perform any function that such institution is required to perform under this subchapter and part C of subchapter I of chapter 34 of title 42, except that the guaranty agency may perform functions on behalf of such institution in accordance with section 1092(b) or 1092(l) of this title; or
(E) conduct fraudulent or misleading advertising concerning loan availability, terms, or conditions.
It shall not be a violation of this paragraph for a guaranty agency to provide technical assistance to institutions of higher education comparable to the technical assistance provided to institutions of higher education by the Department.
With respect to the graduate fellowship program referred to in paragraph (1)(M)(i)(II), 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.
(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.
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.
(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 subparagraph (A), 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 1078–2 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) 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.
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.
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 3 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;
(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); and
(v) beginning July 1, 2009, an income-based repayment plan that enables a borrower who has a partial financial hardship to make a lower monthly payment in accordance with section 1098e of this title, except that the plan described in this clause shall not be available to a borrower for a loan under section 1078–2 of this title made on behalf of a dependent student or for a consolidation loan under section 1078–3 of this title, if the proceeds of such loan were used to discharge the liability of a loan under section 1078–2 of this title made on behalf of a dependent student.
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).
(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) 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”.
(E) 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”.
(F)(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.
(G) 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).
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 default aversion 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.
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 consumer reporting agency 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;
(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;
(iii) the lender shall, at the time of granting a borrower forbearance, provide information to the borrower to assist the borrower in understanding the impact of capitalization of interest on the borrower's loan principal and total amount of interest to be paid during the life of the loan; and
(iv) the lender shall contact the borrower not less often than once every 180 days during the period of forbearance to inform the borrower of—
(I) the amount of unpaid principal and the amount of interest that has accrued since the last statement of such amounts provided to the borrower by the lender;
(II) the fact that interest will accrue on the loan for the period of forbearance;
(III) the amount of interest that will be capitalized, and the date on which capitalization will occur;
(IV) the option of the borrower to pay the interest that has accrued before the interest is capitalized; and
(V) the borrower's option to discontinue the forbearance at any time; 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.
For the purpose of this subsection, the terms “insurance beneficiary” and “default” have the meanings assigned to them by section 1085 of this title.
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.
(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—
(I) beginning October 1, 2003 and ending September 30, 2007, this clause shall be applied by substituting “23 percent” for “24 percent”; and
(II) beginning October 1, 2007, this clause shall be applied by substituting “16 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.
(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.
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.
(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 and part C of subchapter I of chapter 34 of title 42;
(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 6 months after the end of each fiscal year, shall submit to the authorizing committees a report specifying the Secretary's assessment of the fiscal soundness of the guaranty agency system.
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.
No provision of any law of the United States (other than this chapter and part C of subchapter I of chapter 34 of title 42 and section 527 of the Appendix to title 50) 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.
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 on or after October 1, 2003, and first disbursed before July 1, 2010, 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.
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.
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.
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 authorizing committees of his actions.
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.
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.
In each State, the guaranty agency or an eligible lender in the State described in section 1085(d)(1)(D) of this title shall, before July 1, 2010, make loans directly, or through an agreement with an eligible lender or lenders, to eligible students and parents who are otherwise unable to obtain loans under this part (except for consolidation loans under section 1078–3 of this title) or who attend an institution of higher education in the State that is designated under paragraph (4). 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. No loan under section 1078, 1078–2, or 1078–8 of this title that is made pursuant to this subsection shall be made with interest rates, origination or default fees, or other terms and conditions that are more favorable to the borrower than the maximum interest rates, origination or default fees, or other terms and conditions applicable to that type of loan under this part. 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.
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, in the case of students and parents applying for loans under this subsection because of an inability to otherwise obtain loans under this part (except for consolidation loans under section 1078–3 of this title), 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; and
(D) appropriate steps are taken to ensure that borrowers receiving loans under the program are appropriately counseled on their loan obligation.
(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 or designates an institution of higher education for participation in the program under this subsection under paragraph (4), 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 or to eligible borrowers who attend an institution in the State that is designated under paragraph (4).
Upon the request of an institution of higher education and pursuant to standards developed by the Secretary, the Secretary shall designate such institution for participation in the lender-of-last-resort program under this paragraph.5 If the Secretary designates an institution under this paragraph, the guaranty agency designated for the State in which the institution is located shall make loans, in the same manner as such loans are made under paragraph (1), to students and parent borrowers of the designated institution, regardless of whether the students or parent borrowers are otherwise unable to obtain loans under this part (other than a consolidation loan under section 1078–3 of this title).
In developing standards with respect to paragraph (4), the Secretary may require—
(A) an institution of higher education to demonstrate that, despite due diligence on the part of the institution, the institution has been unable to secure the commitment of eligible lenders willing to make loans under this part to a significant number of students attending the institution;
(B) that, prior to making a request under such paragraph for designation for participation in the lender-of-last-resort program, an institution of higher education shall demonstrate that the institution has met a minimum threshold, as determined by the Secretary, for the number or percentage of students at such institution who have received rejections from eligible lenders for loans under this part; and
(C) any other standards and guidelines the Secretary determines to be appropriate.
The Secretary's authority under paragraph (4) to designate institutions of higher education for participation in the program under this subsection shall expire on June 30, 2010.
The eligibility of an institution of higher education, or borrowers from such institution, to participate in the program under this subsection pursuant to a designation of the institution by the Secretary under paragraph (4) shall expire on June 30, 2010. After such date, borrowers from an institution designated under paragraph (4) shall be eligible to participate in the program under this subsection as such program existed on the day before May 7, 2008.
Each guaranty agency or eligible lender that serves as a lender-of-last-resort under this subsection—
(A) shall be subject to the prohibitions on inducements contained in subsection (b)(3) and the requirements of section 1085(d)(5) of this title; and
(B) shall not advertise, market, or otherwise promote loans under this subsection, except that nothing in this paragraph shall prohibit a guaranty agency from fulfilling its responsibilities under paragraph (2)(C).
The Secretary shall—
(i) broadly disseminate information regarding the availability of loans made under this subsection;
(ii) during the period beginning July 1, 2008 and ending June 30, 2011, provide to the authorizing committees and make available to the public—
(I) copies of any new or revised plans or agreements made by guaranty agencies or the Department related to the authorities under this subsection;
(II) quarterly reports on—
(aa) the number and amounts of loans originated or approved pursuant to this subsection by each guaranty agency and eligible lender; and
(bb) any related payments by the Department, a guaranty agency, or an eligible lender; and
(III) a budget estimate of the costs to the Federal Government (including subsidy and administrative costs) for each 100 dollars loaned, of loans made pursuant to this subsection between May 7, 2008, and June 30, 2010, disaggregated by type of loan, compared to such costs to the Federal Government during such time period of comparable loans under this part and part C, disaggregated by part and by type of loan; and
(iii) beginning July 1, 2011, provide to the authorizing committees and make available to the public—
(I) copies of any new or revised plans or agreements made by guaranty agencies or the Department related to the authorities under this subsection; and
(II) annual reports on—
(aa) the number and amounts of loans originated or approved pursuant to this subsection by each guaranty agency and eligible lender; and
(bb) any related payments by the Department, a guaranty agency, or an eligible lender.
The information required to be reported under subparagraph (A)(ii)(II) shall be reported separately for loans originated or approved pursuant to paragraph (4), or payments related to such loans, for the time period in which the Secretary is authorized to make designations under paragraph (4).
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.
Nothing in paragraph (1) of this subsection shall be construed to authorize public dissemination of the information described in paragraph (1).
Any information provided by the institution relating to borrower location shall be used by the guaranty agency in conducting required skip-tracing activities.
Each guaranty agency that has received a default claim from a lender regarding a borrower, shall provide the borrower in default, on not less than two separate occasions, with a notice, in simple and understandable terms, of not less than the following information:
(A) The options available to the borrower to remove the borrower's loan from default.
(B) The relevant fees and conditions associated with each option.
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.
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.
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.
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.
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 or income-based 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 or an income-based repayment plan under section 1098e of this title, as the case may be.
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.
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.
(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.
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.
The Secretary shall, at the conclusion of the pilot program under paragraph (3), provide a report to the authorizing committees on the impact of the blanket certificates of guaranty on program efficiency and integrity.
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.
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.
For the purposes of this subsection, the term “special allowance”,6 means a special allowance that is payable with respect to a loan under section 1087–1 of this title.
(Pub. L. 89–329, title IV, §428, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1367; amended Pub. L. 100–50, §10(a)–(c), (e)–(m), June 3, 1987, 101 Stat. 341–343; Pub. L. 100–203, title III, §§3001(b), 3002(b), 3003, Dec. 22, 1987, 101 Stat. 1330–38, 1330–39; Pub. L. 100–369, §§5(b)(2), 7(c), 11(a), July 18, 1988, 102 Stat. 836–838; Pub. L. 101–239, title II, §§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, §§3002, 3004(b), Nov. 5, 1990, 104 Stat. 1388–25, 1388–27; Pub. L. 102–26, §9, Apr. 9, 1991, 105 Stat. 128; Pub. L. 102–164, title VI, §§601(b), 602(b), 604, 605(b)(2), Nov. 15, 1991, 105 Stat. 1065, 1066, 1068; Pub. L. 102–325, title IV, §§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, §§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, §102(c)(1), Sept. 21, 1993, 107 Stat. 823; Pub. L. 103–208, §2(c)(11)–(28), Dec. 20, 1993, 107 Stat. 2462–2465; Pub. L. 103–382, title III, §355(a), Oct. 20, 1994, 108 Stat. 3967; Pub. L. 105–33, title VI, §§6101(b), 6104(2), Aug. 5, 1997, 111 Stat. 652; Pub. L. 105–244, title IV, §417(a)–(c)(1)(A), (2)–(k), Oct. 7, 1998, 112 Stat. 1682–1690; Pub. L. 107–314, div. A, title VI, §651(b), Dec. 2, 2002, 116 Stat. 2579; Pub. L. 109–171, title VIII, §§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; Pub. L. 110–84, title II, §202(a), title III, §§301, 302(b)(1), 303(a), Sept. 27, 2007, 121 Stat. 791, 796, 797; Pub. L. 110–227, §§3(b), 5(a), May 7, 2008, 122 Stat. 742, 743; Pub. L. 110–315, title I, §103(b)(4), title IV, §§422(a)(1), (b)–(g)(1), (h)–(j), 424(b), 432(b)(2), 438(a)(2), Aug. 14, 2008, 122 Stat. 3088, 3227–3231, 3233, 3246, 3258; Pub. L. 110–350, §2, Oct. 7, 2008, 122 Stat. 3947; Pub. L. 111–39, title IV, §402(a)(1), (b)(1), (f)(1), July 1, 2009, 123 Stat. 1940, 1943; Pub. L. 111–152, title II, §2204, Mar. 30, 2010, 124 Stat. 1075; Pub. L. 112–74, div. F, title III, §309(d)(1), Dec. 23, 2011, 125 Stat. 1101.)
The National and Community Service Act of 1990, referred to in subsec. (a)(2)(C)(ii)(II)(aa), is Pub. L. 101–610, Nov. 16, 1990, 104 Stat. 3127. Title I of the Act enacted subchapter I (§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), was repealed by Pub. L. 103–66, title IV, §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, §418, Oct. 7, 1998, 112 Stat. 1691.
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. 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.
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.
A prior section 1078, Pub. L. 89–329, title IV, §428, Nov. 8, 1965, 79 Stat. 1240; Pub. L. 90–460, §§1(a)(2), 2(a)(2), (b)(1), (2), 3(b), Aug. 3, 1968, 82 Stat. 634–636; Pub. L. 90–575, title I, §§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, §§132(b), 132A(b), 132C(a), (b), 132D(b)–(d), June 23, 1972, 86 Stat. 261–264; Pub. L. 93–269, §§2–4, Apr. 18, 1974, 88 Stat. 87, 89; Pub. L. 94–328, §2(b), June 30, 1976, 90 Stat. 727; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2108; S. Res. 4, Feb. 4, 1977; Pub. L. 95–43, §1(a)(19)–(29), June 15, 1977, 91 Stat. 214–216; Pub. L. 95–566, §5(a)(2), (b)(1), (3)–(5), Nov. 1, 1978, 92 Stat. 2403; S. Res. 30, Mar. 7, 1979; Pub. L. 96–49, §5(b), Aug. 13, 1979, 93 Stat. 352; Pub. L. 96–374, title IV, §§411(b), 412(c), (d), (f), 413(b), (d), 414, 415(a)(3)–(5), (b)(2), 417, 423(a)(2), (b)–(d), title XIII, §1391(a)(1), (2), Oct. 3, 1980, 94 Stat. 1416–1420, 1422, 1432, 1503; Pub. L. 97–35, title V, §§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, §10(b), Aug. 15, 1983, 97 Stat. 484; Pub. L. 99–272, title XVI, §§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, §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, §2, Oct. 22, 1969, 83 Stat. 141; Pub. L. 92–318, title I, §134(a), June 23, 1972, 86 Stat. 270; Pub. L. 93–269, §5, Apr. 18, 1974, 88 Stat. 89; Pub. L. 94–328, §2(c), June 30, 1976, 90 Stat. 727; Pub. L. 94–482, title I, §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, §127(c)(2), Oct. 12, 1976, 90 Stat. 2142.
2011—Subsec. (a)(3)(A)(i)(I). Pub. L. 112–74 amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “which accrues prior to the beginning of the repayment period of the loan, or”.
2010—Subsec. (a)(1). Pub. L. 111–152, §2204(a)(1)(A), inserted “for which the first disbursement is made before July 1, 2010, and” after “eligible institution” in introductory provisions.
Subsec. (a)(5). Pub. L. 111–152, §2204(a)(1)(B), substituted “June 30, 2010.” for “September 30, 2014, 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, 2018.”
Subsec. (b)(1)(G). Pub. L. 111–152, §2204(b), repealed Pub. L. 110–84, §303. See 2007 Amendment note below.
Subsec. (b)(1)(G)(ii). Pub. L. 111–152, §2204(a)(2)(A), inserted “and before July 1, 2010,” after “July 1, 2006,”.
Subsec. (b)(1)(H)(ii). Pub. L. 111–152, §2204(a)(2)(B), inserted “and that are first disbursed before July 1, 2010,” after “July 1, 2006,”.
Subsec. (f)(1)(A)(ii). Pub. L. 111–152, §2204(a)(3), struck out “during fiscal years beginning” after “originated” and inserted “and first disbursed before July 1, 2010,” after “October 1, 2003,”.
Subsec. (j)(1). Pub. L. 111–152, §2204(a)(4), inserted “, before July 1, 2010,” after “section 1085(d)(1)(D) of this title shall”.
2009—Subsec. (a)(2)(A)(i)(II). Pub. L. 111–39, §402(f)(1)(A), struck out “and” after semicolon at end.
Subsec. (b)(1)(G)(i). Pub. L. 111–39, §402(a)(1), which directed amendment of cl. (i), as amended by section 303 of Pub. L. 110–84, by striking “or 1087–2(q)”, could not be executed because of the repeal of section 303 by Pub. L. 111–152, §2204(b). See 2010 Amendment note above and 2007 Amendment note below.
Subsec. (b)(1)(M)(i). Pub. L. 111–39, §402(f)(1)(B)(i), inserted “section” before “1078–2” in concluding provisions.
Subsec. (b)(3)(A)(i). Pub. L. 111–39, §402(f)(1)(B)(ii), substituted “any institution of higher education, any employee of an institution of higher education, or any individual or entity” for “any institution of higher education or the employees of an institution of higher education”.
Subsec. (b)(3)(C), (D). Pub. L. 111–39, §402(b)(1), inserted “or 1092(l)” after “section 1092(b)”.
Subsec. (b)(4). Pub. L. 111–39, §402(f)(1)(B)(iii), substituted “With respect to the graduate fellowship program referred to in paragraph (1)(M)(i)(II),” for “For the purpose of paragraph (1)(M)(i)(III) of this subsection,”.
Subsec. (b)(7)(B). Pub. L. 111–39, §402(f)(1)(B)(iv)(I), struck out “clause (i) or (ii) of” before “subparagraph (A)”.
Subsec. (b)(7)(D). Pub. L. 111–39, §402(f)(1)(B)(iv)(II), substituted “subparagraph (A)” for “subparagraph (A)(i)”.
Subsec. (c)(9)(K). Pub. L. 111–39, §402(f)(1)(C), substituted “6 months” for “3 months”.
2008—Subsec. (a)(2)(C). Pub. L. 110–315, §422(a)(1), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “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; 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.”
Subsec. (a)(5). Pub. L. 110–315, §422(b), substituted “2014” for “2012” and “2018” for “2016”.
Subsec. (b)(1)(G)(i). Pub. L. 110–315, §438(a)(2)(A), struck out “or section 1087–2(q) of this title” before semicolon at end.
Subsec. (b)(1)(L)(i). Pub. L. 110–315, §422(e)(2), substituted “clause (ii), (iii), or (v)” for “clause (ii) or (iii)”.
Subsec. (b)(1)(Y)(i). Pub. L. 110–315, §422(c)(1)(A), added cl. (i) and struck out former cl. (i) which read as follows: “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”.
Subsec. (b)(1)(Y)(iii). Pub. L. 110–315, §422(c)(1)(B), (C), added cl. (iii).
Subsec. (b)(2)(F)(i)(V) to (VII). Pub. L. 110–315, §422(c)(2), added subcls. (V) to (VII).
Subsec. (b)(3). Pub. L. 110–315, §422(d), amended par. (3) generally. Prior to amendment, text read as follows: “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.”
Subsec. (b)(7)(C). Pub. L. 110–315, §424(b), substituted “section 1078–2 or 1078–3” for “section 1078–1 or 1078–3”.
Pub. L. 110–227, §3(b), struck out “, 1078–2,” after “section 1078–1”.
Subsec. (b)(9)(A)(v). Pub. L. 110–315, §422(e)(1), added cl. (v).
Subsec. (c)(2)(H)(i). Pub. L. 110–315, §422(f)(1), substituted “default aversion” for “preclaims”.
Subsec. (c)(3)(A)(iii). Pub. L. 110–315, §432(b)(2), substituted “consumer reporting agency” for “credit bureau organization”.
Subsec. (c)(3)(C)(iii), (iv). Pub. L. 110–315, §422(f)(2), added cls. (iii) and (iv).
Subsec. (c)(9)(K). Pub. L. 110–315, §103(b)(4)(A), substituted “authorizing committees” for “House Committee on Education and the Workforce and the Senate Committee on Labor and Human Resources”.
Subsec. (d). Pub. L. 110–315, §422(g)(1), inserted “and section 527 of the Appendix to title 50” after “(other than this chapter and part C of subchapter I of chapter 34 of title 42” in introductory provisions.
Subsec. (e). Pub. L. 110–315, §422(h), struck out subsec. (e). Text read as follows: “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.”
Subsec. (g). Pub. L. 110–315, §103(b)(4)(B), substituted “authorizing committees” for “Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives” in concluding provisions.
Subsec. (h). Pub. L. 110–315, §438(a)(2)(B), struck out subsec. (h) which related to lending by guaranty agencies.
Subsec. (j)(1). Pub. L. 110–227, §5(a)(1), after second sentence, inserted “No loan under section 1078, 1078–2, or 1078–8 of this title that is made pursuant to this subsection shall be made with interest rates, origination or default fees, or other terms and conditions that are more favorable to the borrower than the maximum interest rates, origination or default fees, or other terms and conditions applicable to that type of loan under this part.”
Pub. L. 110–227, §5(a)(1), in first sentence, substituted “eligible students and parents who are otherwise unable to obtain loans under this part (except for consolidation loans under section 1078–3 of this title) or who attend an institution of higher education in the State that is designated under paragraph (4)” for “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”.
Subsec. (j)(2)(B). Pub. L. 110–227, §5(a)(2), inserted “, in the case of students and parents applying for loans under this subsection because of an inability to otherwise obtain loans under this part (except for consolidation loans under section 1078–3 of this title),” after “lender, nor”.
Subsec. (j)(2)(C) to (E). Pub. L. 110–315, §438(a)(2)(C), inserted “and” at the end of subpar. (C), substituted period for “; and” at the end of subpar. (D), and struck out subpar. (E) which read as follows: “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.”
Subsec. (j)(3)(C). Pub. L. 110–227, §5(a)(3), inserted “or designates an institution of higher education for participation in the program under this subsection under paragraph (4)” after “under this part” in first sentence and “or to eligible borrowers who attend an institution in the State that is designated under paragraph (4)” after “problems” in third sentence.
Subsec. (j)(4), (5). Pub. L. 110–227, §5(a)(4), added pars. (4) and (5).
Subsec. (j)(6). Pub. L. 110–350, §2(1), substituted “June 30, 2010” for “June 30, 2009”.
Pub. L. 110–227, §5(a)(4), added par. (6).
Subsec. (j)(7). Pub. L. 110–350, §2(2), substituted “June 30, 2010” for “June 30, 2009”.
Pub. L. 110–227, §5(a)(4), added par. (7).
Subsec. (j)(8), (9). Pub. L. 110–227, §5(a)(4), added pars. (8) and (9).
Subsec. (j)(9)(A)(ii). Pub. L. 110–350, §2(3)(A), substituted “June 30, 2011” for “June 30, 2010” in introductory provisions.
Pub. L. 110–315, §103(b)(4)(C), substituted “authorizing committees” for “Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Labor of the House of Representatives” in introductory provisions.
Subsec. (j)(9)(A)(ii)(III). Pub. L. 110–350, §2(3)(B), substituted “June 30, 2010” for “June 30, 2009”.
Subsec. (j)(9)(A)(iii). Pub. L. 110–350, §2(3)(C), substituted “July 1, 2011” for “July 1, 2010”.
Pub. L. 110–315, §103(b)(4)(C), substituted “authorizing committees” for “Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Labor of the House of Representatives” in introductory provisions.
Subsec. (k)(4). Pub. L. 110–315, §422(i), added par. (4).
Subsec. (m). Pub. L. 110–315, §422(j)(1), inserted “and income-based” after “Income contingent” in heading.
Subsec. (m)(1). Pub. L. 110–315, §422(j)(2), inserted “or income-based repayment plan” before “, the terms and conditions” and “or an income-based repayment plan under section 1098e of this title, as the case may be” before the period at end.
Subsec. (m)(2). Pub. L. 110–315, §422(j)(3), inserted “or income-based” after “income contingent” in heading.
Subsec. (n)(4). Pub. L. 110–315, §103(b)(4)(D), substituted “authorizing committees” for “Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate”.
2007—Subsec. (b)(1)(G). Pub. L. 110–84, §303(a), which directed the general amendment of subpar. (G), was repealed by Pub. L. 111–152, §2204(b).
Subsec. (b)(1)(M)(iii). Pub. L. 110–84, §202(a), struck out “not in excess of 3 years” before “during” in introductory provisions, substituted comma for “; or” at end of subcl. (II), and inserted concluding provisions.
Subsec. (c)(1)(D) to (H). Pub. L. 110–84, §302(b)(1), redesignated subpars. (E) to (H) as (D) to (G), respectively, and struck out former subpar. (D) which read as follows: “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.”
Subsec. (c)(6)(A)(ii). Pub. L. 110–84, §301, amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “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’.”
2006—Subsec. (a)(3)(A)(v)(III). Pub. L. 109–171, §8014(j)(1), added subcl. (III).
Subsec. (a)(5). Pub. L. 109–171, §8004(b)(2), substituted “2012” and “2016” for “2004” and “2008”, respectively.
Subsec. (b)(1)(A)(i)(I). Pub. L. 109–171, §8005(b)(1), substituted “$3,500” for “$2,625”.
Subsec. (b)(1)(A)(ii)(I). Pub. L. 109–171, §8005(b)(2), substituted “$4,500” for “$3,500”.
Subsec. (b)(1)(G). Pub. L. 109–171, §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, §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, §8007(a), added cl. (iii) and redesignated former cl. (iii) as (iv).
Subsec. (b)(1)(N)(ii), (iii). Pub. L. 109–171, §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, §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, §8014(j)(2), substituted “30 days” for “45 days” in last sentence.
Subsec. (c)(1)(G), (H). Pub. L. 109–171, §8014(c)(1), added subpar. (G) and redesignated former subpar. (G) as (H) and realigned margin.
Subsec. (c)(2)(A). Pub. L. 109–171, §8014(d)(1), inserted “(i)” after “including” and added cl. (ii) before semicolon at end.
Subsec. (c)(2)(D). Pub. L. 109–171, §8014(d)(2), substituted “paragraph (6)(A)” for “paragraph (6)”.
Subsec. (c)(3)(A)(i). Pub. L. 109–171, §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, §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, §8014(e)(2), added par. (10).
Subsec. (i)(1). Pub. L. 109–171, §8014(j)(3), substituted “10 days” for “21 days” in third sentence.
2002—Subsec. (c)(3)(A)(i)(IV). Pub. L. 107–314, §651(b)(1)(A), added subcl. (IV).
Subsec. (c)(3)(A)(ii)(II). Pub. L. 107–314, §651(b)(1)(B), inserted “or (IV)” after “(i)(II)”.
Subsec. (c)(3)(C). Pub. L. 107–314, §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, §651(b)(2), added subsec. (o).
1998—Subsec. (a)(2)(A)(i). Pub. L. 105–244, §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, §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, §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, §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, §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, §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, §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, §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, §417(b)(1)(C)–(E), added cl. (vi).
Subsec. (b)(1)(D)(ii). Pub. L. 105–244, §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, §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, §417(b)(4), struck out “not less than” after “insures”.
Subsec. (b)(1)(L)(i). Pub. L. 105–244, §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, §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, §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, §417(b)(7)(A), substituted “emergency action,” for “emergency action,,”.
Subsec. (b)(1)(U)(iii)(I). Pub. L. 105–244, §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, §417(b)(8)(B)(i), substituted “subsection (c)(9)” for “subsection (c)(10)”.
Subsec. (b)(1)(Y). Pub. L. 105–244, §417(b)(8)(A), (B)(ii), (C), added subpar. (Y).
Subsec. (b)(3). Pub. L. 105–244, §417(b)(9)(B), inserted concluding provisions.
Subsec. (b)(3)(C). Pub. L. 105–244, §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, §417(b)(10), added subpar. (D).
Subsec. (b)(9). Pub. L. 105–244, §417(b)(11), added par. (9).
Subsec. (c)(1)(A). Pub. L. 105–244, §417(c)(1)(A)(i), substituted “95 percent” for “98 percent”.
Subsec. (c)(1)(B)(i). Pub. L. 105–244, §417(c)(1)(A)(ii), substituted “85 percent” for “88 percent”.
Subsec. (c)(1)(B)(ii). Pub. L. 105–244, §417(c)(1)(A)(iii), substituted “75 percent” for “78 percent”.
Subsec. (c)(1)(E)(i). Pub. L. 105–244, §417(c)(1)(A)(iv)(I), substituted “95 percent” for “98 percent”.
Subsec. (c)(1)(E)(ii). Pub. L. 105–244, §417(c)(1)(A)(iv)(II), substituted “85 percent” for “88 percent”.
Subsec. (c)(1)(E)(iii). Pub. L. 105–244, §417(c)(1)(A)(iv)(III), substituted “75 percent” for “78 percent”.
Subsec. (c)(1)(F)(i). Pub. L. 105–244, §417(c)(1)(A)(v)(I), substituted “95 percent” for “98 percent”.
Subsec. (c)(1)(F)(ii). Pub. L. 105–244, §417(c)(1)(A)(v)(II), substituted “85 percent” for “88 percent”.
Subsec. (c)(1)(F)(iii). Pub. L. 105–244, §417(c)(1)(A)(v)(III), substituted “75 percent” for “78 percent”.
Subsec. (c)(2)(A). Pub. L. 105–244, §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, §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, §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, §417(c)(4)(A), struck out “written” before “request” in introductory provisions.
Subsec. (c)(3)(D). Pub. L. 105–244, §417(c)(4)(B)–(D), added subpar. (D).
Subsec. (c)(6). Pub. L. 105–244, §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, §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, §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, §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, §417(c)(7)(C)(i), inserted “or” at end.
Subsec. (c)(9)(E)(v). Pub. L. 105–244, §417(c)(7)(C)(ii), substituted a period for “; or” at end.
Subsec. (c)(9)(E)(vi). Pub. L. 105–244, §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, §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, §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, §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, §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, §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, §417(f), substituted “and the Workforce” for “and Labor” in concluding provisions.
Subsec. (j)(3). Pub. L. 105–244, §417(g)(1), struck out “during transition to direct lending” after “services” in heading.
Subsec. (j)(3)(A). Pub. L. 105–244, §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, §417(g)(3), added subpar. (C).
Subsec. (l). Pub. L. 105–244, §417(h), amended heading and text of subsec. (l) generally. Prior to amendment, text read as follows:
“(1)
“(2)
Subsec. (m)(1). Pub. L. 105–244, §417(i), substituted “may require borrowers” for “shall require at least 10 percent of the borrowers”.
Subsec. (n). Pub. L. 105–244, §417(k), added subsec. (n).
Pub. L. 105–244, §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, §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, §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, §2(c)(11), substituted “; and” for period at end.
Subsec. (a)(2)(E). Pub. L. 103–208, §2(c)(12), inserted “or 1078–8” after “1078–1”.
Subsec. (b)(1)(A)(ii), (iii). Pub. L. 103–208, §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, §2(c)(13)(B), (C), added cl. (iv) and redesignated former cl. (iv) as (v).
Subsec. (b)(1)(B). Pub. L. 103–208, §2(c)(14), substituted a semicolon for period at end of closing provisions.
Subsec. (b)(1)(D). Pub. L. 103–66, §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, §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, §4102(c), substituted “1.0 percent” for “3 percent”.
Subsec. (b)(1)(N). Pub. L. 103–208, §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, §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, §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, §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, §102(c)(1)(A), added subpar. (W) and redesignated former subpar. (W) as (X).
Subsec. (b)(1)(X). Pub. L. 103–208, §2(c)(17)(B), redesignated subpar. (Z) as (X). Former subpar. (X) redesignated (V). See Codification note above.
Pub. L. 103–82, §102(c)(1)(A)(i), redesignated subpar. (W) as (X). Former subpar. (X) redesignated (Y).
Subsec. (b)(1)(Y). Pub. L. 103–208, §2(c)(17)(B), redesignated subpar. (Y) as (W). See Codification note above.
Pub. L. 103–82, §102(c)(1)(A)(i), redesignated subpar. (X) as (Y). Former subpar. (Y) redesignated (Z).
Subsec. (b)(1)(Z). Pub. L. 103–208, §2(c)(17)(B), redesignated subpar. (Z) as (X). See Codification note above.
Pub. L. 103–82, §102(c)(1)(A)(i), redesignated subpar. (Y) as (Z).
Subsec. (b)(2)(F)(i). Pub. L. 103–208, §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, §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, §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, §2(c)(23), added par. (8).
Subsec. (c)(1)(A). Pub. L. 103–208, §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, §4108(a)(1), substituted “98 percent” for “100 percent” in fourth sentence.
Subsec. (c)(1)(B), (E), (F). Pub. L. 103–66, §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, §2(c)(25), substituted “certifies” for “demonstrates” before “to the Secretary”.
Subsec. (c)(3)(A). Pub. L. 103–208, §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, §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, §4110(a), substituted “27 percent” for “30 percent”.
Subsec. (c)(8). Pub. L. 103–66, §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, §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, §4107(a)(2), redesignated par. (10) as (9).
Subsec. (c)(10)(C). Pub. L. 103–66, §4045(1), inserted “, as appropriate,” after “the Secretary shall require”.
Subsec. (c)(10)(D). Pub. L. 103–66, §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, §4045(3), added cls. (iv) to (vi).
Subsec. (c)(10)(F). Pub. L. 103–66, §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, §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, §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, §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, §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, §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, §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, §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, §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, §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, §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, §4041(b)(4), struck out par. (5) which related to authorization of appropriations.
Subsec. (f)(1)(A). Pub. L. 103–66, §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, §4107(b)(2), inserted “prior to fiscal year 1994” after “any fiscal year”.
Subsec. (j)(2). Pub. L. 103–208, §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, §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, §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, §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, §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, §4201(a), added subsec. (n).
1992—Subsec. (a)(2)(C). Pub. L. 102–325, §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, §416(a)(2), added cl. (v).
Subsec. (a)(5). Pub. L. 102–325, §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, §416(a)(3), added par. (7).
Subsec. (b)(1)(A). Pub. L. 102–325, §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, §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, §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, §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, §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, §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, §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, §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, §416(h), added cl. (iii).
Subsec. (b)(1)(V). Pub. L. 102–325, §416(i)(4), (5), added cls. (ii) and (iii) and redesignated former cl. (ii) as (iv).
Pub. L. 102–325, §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, §601(b)(2).
Pub. L. 102–325, §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, §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, §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, §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, §416(k)(3), designated existing provisions as cl. (i) and added cl. (ii).
Subsec. (b)(2)(F). Pub. L. 102–325, §416(k)(2)(B), (4), added subpar. (F).
Subsec. (b)(3)(B) to (D). Pub. L. 102–325, §416(l), added subpar. (B) and redesignated former subpars. (B) and (C) as (C) and (D), respectively.
Subsec. (b)(4). Pub. L. 102–325, §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, §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, §416(m)(2), redesignated par. (6) as (5). Former par. (5) redesignated (4).
Subsec. (b)(6). Pub. L. 102–325, §416(o), added par. (6). Former par. (6) redesignated (5).
Subsec. (b)(7). Pub. L. 102–325, §416(c)(2), added par. (7).
Subsec. (c)(1)(A). Pub. L. 102–325, §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, §416(p)(2), added subpar. (D).
Subsec. (c)(2). Pub. L. 102–325, §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, §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, §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, §416(p)(5)(D), added subpar. (B). Former subpar. (B) redesignated (C).
Subsec. (c)(7)(C). Pub. L. 102–325, §416(p)(5)(B), (C), redesignated subpar. (B) as (C) and inserted “or (B)” after “(A)”.
Subsec. (c)(8). Pub. L. 102–325, §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, §416(p)(7), added par. (10).
Subsec. (f)(1)(A)(i). Pub. L. 102–325, §416(q)(1), substituted “eligible lender” for “commercial lender”.
Subsec. (f)(1)(C). Pub. L. 102–325, §416(q)(2), added subpar. (C).
Subsec. (j). Pub. L. 102–325, §416(r), designated existing provisions as par. (1), inserted par. heading, and added pars. (2) and (3).
Subsec. (k)(3). Pub. L. 102–325, §416(s), added par. (3).
Subsec. (m). Pub. L. 102–325, §416(t), added subsec. (m).
1991—Subsec. (a)(2)(A)(iii). Pub. L. 102–164, §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, §601(b), added subpar. (W).
Subsec. (b)(1)(X). Pub. L. 102–164, §604, added subpar. (X).
Subsec. (c)(6)(D). Pub. L. 102–164, §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, §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, §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, §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, §3002(b), added subsec. (l).
1989—Subsec. (a)(2)(A)(i)(III). Pub. L. 101–239, §2004(b)(1), added subcl. (III).
Subsec. (b)(1)(M)(i). Pub. L. 101–239, §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, §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, §2006(b)(1), inserted “emergency action,” after “regulations for the”.
Subsec. (b)(1)(U). Pub. L. 101–239, §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, §2002(b)(1)(A), added subpar. (V).
Subsec. (c)(3). Pub. L. 101–239, §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, §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, §11(a), inserted “after January 1, 1986,” after “service”.
Subsec. (b)(1)(O). Pub. L. 100–369, §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, §10(e), substituted “certifies the eligibility of any student” for “permits the student”.
Subsec. (b)(1)(A)(i). Pub. L. 100–50, §10(f)(1), substituted “first and” for “first or”.
Subsec. (b)(1)(B)(i). Pub. L. 100–50, §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, §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, §10(b)(1), inserted “nonprofit” before “private”.
Subsec. (b)(1)(M)(vii). Pub. L. 100–50, §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, §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, §10(c), substituted “$1,000 or more” for “more than $1,000”.
Subsec. (b)(1)(O)(i). Pub. L. 100–50, §10(f)(3), substituted “being disbursed” for “being dispensed”.
Subsec. (b)(1)(P). Pub. L. 100–50, §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, §10(f)(5), inserted “(other than nonresidential correspondence schools)” after “eligible institutions”.
Subsec. (b)(5). Pub. L. 100–50, §10(g), substituted “paragraph (1)(M)(i)(III)” for “paragraph (1)(M)”.
Subsec. (b)(6)(A). Pub. L. 100–50, §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, §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, §3002(b)(1), substituted “shall be deemed” for “shall, subject to section 1072(e) of this title, be deemed”.
Pub. L. 100–203, §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, §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, §10(j), inserted “and enforces” after “enacts”.
Subsec. (c)(9)(A). Pub. L. 100–203, §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, §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, §10(k)(1), inserted “covered” before “loans”.
Subsec. (c)(9)(D). Pub. L. 100–50, §10(k)(2), added subpar. (D).
Subsec. (f)(1)(B). Pub. L. 100–203, §3002(b)(3), substituted “shall be deemed” for “shall, subject to section 1072(e) of this title, be deemed”.
Pub. L. 100–203, §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, §10(l), struck out “multiple” after “authorizing” and substituted “21 days” for “45 days”.
Subsec. (j). Pub. L. 100–50, §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, §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”.
Pub. L. 112–74, div. F, title III, §309(d)(2), Dec. 23, 2011, 125 Stat. 1101, provided that: “The amendment made by paragraph (1) [amending this section] shall apply to new Federal Direct Stafford Loans made on or after July 1, 2012 and before July 1, 2014.”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), except as otherwise provided, see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 111–39, title IV, §402(a)(2), July 1, 2009, 123 Stat. 1940, provided that: “The amendment made by paragraph (1) [amending this section] shall be effective as if enacted as part of the amendment in [former] section 303(a) of the College Cost Reduction and Access Act (Public Law 110–84) [amending this section], shall take effect on October 1, 2012, and shall apply with respect to loans made on or after such date.”
Pub. L. 110–315, title IV, §422(a)(2), Aug. 14, 2008, 122 Stat. 3228, provided that: “The amendments made by paragraph (1) [amending this section] shall take effect on July 1, 2010.”
Pub. L. 110–315, title IV, §422(g)(3), Aug. 14, 2008, 122 Stat. 3231, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the date of enactment of this Act [Aug. 14, 2008], and the amendment made by paragraph (2) [amending section 1087–1 of this title] shall take effect for loans for which the first disbursement is made on or after July 1, 2008.”
Pub. L. 110–315, title IV, §424(c), Aug. 14, 2008, 122 Stat. 3233, provided that: “The amendments made by this section [amending this section and section 1078–2 of this title] shall take effect for loans for which the first disbursement is made on or after July 1, 2008.”
Pub. L. 110–227, §3(c), May 7, 2008, 122 Stat. 742, provided that: “The amendments made by this section [amending this section and section 1078–2 of this title] shall be effective for loans first disbursed on or after July 1, 2008.”
Pub. L. 110–227, §5(b), May 7, 2008, 122 Stat. 746, provided that: “The amendments made by subsection (a) [amending this section] shall take effect on the date of enactment of this Act [May 7, 2008].”
Amendment by sections 202(a), (d) and 301 of Pub. L. 110–84 effective Oct. 1, 2007, see section 1(c) of Pub. L. 110–84, set out as a note under section 1070a of this title.
Pub. L. 110–84, title III, §302(c), Sept. 27, 2007, 121 Stat. 796, provided that: “The amendments made by subsections (a) and (b) [amending this section and section 1087–1 of this title and repealing section 1078–9 of this title] shall be effective on October 1, 2007, except that section 428I of the Higher Education Act of 1965 [20 U.S.C. 1078–9] (as in effect on the day before the date of enactment of this Act [Sept. 27, 2007]) shall apply to eligible lenders that received a designation under subsection (a) of such section prior to October 1, 2007, for the remainder of the year for which the designation was made.”
Pub. L. 110–84, title III, §303(b), Sept. 27, 2007, 121 Stat. 797, which provided that amendment by former section 303(a) of Pub. L. 110–84 (amending this section) would be effective on Oct. 1, 2012, and applicable with respect to loans made on or after such date, was repealed by Pub. L. 111–152, title II, §2204(b), Mar. 30, 2010, 124 Stat. 1075.
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, §8007(f), Feb. 8, 2006, 120 Stat. 161, as amended by Pub. L. 110–84, title II, §202(d), Sept. 27, 2007, 121 Stat. 792, 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 all loans under title IV of the Higher Education Act of 1965 [20 U.S.C. 1070 et seq., 42 U.S.C. 2751 et seq.].”
Pub. L. 109–171, title VIII, §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, §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.”
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.
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, §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.”
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.”
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.”
Section 432 of Pub. L. 102–325, as amended by Pub. L. 103–208, §2(k)(5), Dec. 20, 1993, 107 Stat. 2486, provided that:
“(a)
“(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)
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.
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.
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.
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.
Pub. L. 109–171, title VIII, §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.”
Pub. L. 110–227, §5(c), May 7, 2008, 122 Stat. 746, provided that: “Within 90 days after the date of enactment of this Act [May 7, 2008], the Secretary of Education shall review, and as necessary revise, the Department of Education's regulations concerning prohibited guaranty agency inducements to eligible lenders (34 CFR 682.401(e)) to ensure that such agencies do not engage in improper inducements in the expansion of operations of the lender-of-last-resort program as authorized by the amendments made by this section [amending this section]. The Secretary shall submit a report on the review and revision required by this subsection to the Committee on Education and Labor [now Committee on Education and the Workforce] of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate within 180 days after such date of enactment.”
Pub. L. 97–301, §9, Oct. 13, 1982, 96 Stat. 1403, as amended by Pub. L. 98–79, §4(b), Aug. 15, 1983, 97 Stat. 481; Pub. L. 98–511, title VII, §707(7), (8), Oct. 19, 1984, 98 Stat. 2407, 2408; Pub. L. 99–272, title XVI, §16018(b), Apr. 7, 1986, 100 Stat. 348; Pub. L. 99–498, title IV, §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, §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.
1 See References in Text note below.
2 So in original. The period probably should be a semicolon.
4 So in original. No par. (2) has been enacted.
5 So in original. Probably should be “subsection.”
6 So in original. The comma probably should not appear.
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.
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.
The Secretary, in consultation with the guaranty agencies operating under voluntary flexible agreements, shall report on an annual basis to the authorizing committees regarding the program outcomes that the voluntary flexible agreements have had with respect to—
(i) program integrity and program and cost efficiencies, delinquency prevention, and default aversion, including a comparison of such outcomes to such outcomes for each guaranty agency operating under an agreement under subsection (b) or (c) of section 1078 of this title;
(ii) consumer education programs described in section 1083a of this title; and
(iii) the availability and delivery of student financial aid.
Each report described in subparagraph (A) shall include—
(i) a description of each voluntary flexible agreement and the performance goals established by the Secretary for each agreement;
(ii) a list of—
(I) guaranty agencies operating under voluntary flexible agreements;
(II) the specific statutory or regulatory waivers provided to each such guaranty agency; and
(III) any other waivers provided to other guaranty agencies under paragraph (1);
(iii) a description of the standards by which each guaranty agency's performance under the guaranty agency's voluntary flexible agreement was assessed and the degree to which each guaranty agency achieved the performance standards;
(iv) an analysis of the fees paid by the Secretary, and the costs and efficiencies achieved under each voluntary flexible agreement; and
(v) an identification of promising practices for program improvement that could be replicated by other guaranty agencies.
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 and part C of subchapter I of chapter 34 of title 42.
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.
The Secretary shall notify the members of the authorizing committees 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.
The Secretary shall notify the members of the authorizing committees 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.
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.
The Secretary shall notify the members of the authorizing committees 30 days prior to any modifications to an agreement under this section.
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.
(Pub. L. 89–329, title IV, §428A, as added Pub. L. 105–244, title IV, §418, Oct. 7, 1998, 112 Stat. 1691; amended Pub. L. 109–171, title VIII, §8014(b)(3), (f), Feb. 8, 2006, 120 Stat. 169, 170; Pub. L. 110–315, title I, §103(b)(5), title IV, §423, Aug. 14, 2008, 122 Stat. 3089, 3231.)
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, §8014(f)(2), and par. (3) was redesignated (2). See 2006 Amendment note below.
A prior section 1078–1, Pub. L. 89–329, title IV, §428A, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1384; amended Pub. L. 100–50, §10(n), (o)(1), (p)(1), (q), (r)(1), June 3, 1987, 101 Stat. 343, 344; Pub. L. 100–369, §§3–5(a), (b)(3), July 18, 1988, 102 Stat. 835, 836; Pub. L. 101–239, title II, §2003(a)(1), (b)(1), (c)(1), Dec. 19, 1989, 103 Stat. 2112, 2114; Pub. L. 101–508, title III, §3006(b), Nov. 5, 1990, 104 Stat. 1388–28; Pub. L. 102–26, §2(c)(1), Apr. 9, 1991, 105 Stat. 123; Pub. L. 102–325, title IV, §417, July 23, 1992, 106 Stat. 529; Pub. L. 103–208, §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, §4047(b), (d), Aug. 10, 1993, 107 Stat. 364, effective July 1, 1994.
Another prior section 1078–1, Pub. L. 89–329, title IV, §428A, as added Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2120; amended Pub. L. 95–43, §1(a)(30)–(32), June 15, 1977, 91 Stat. 216; Pub. L. 96–374, title IV, §412(e), (f), title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1416, 1417, 1503; Pub. L. 97–35, title V, §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.
2008—Subsec. (a)(3). Pub. L. 110–315, §423, added par. (3).
Subsec. (c)(2), (3). Pub. L. 110–315, §103(b)(5)(A), (B), substituted “members of the authorizing committees” for “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”.
Subsec. (c)(5). Pub. L. 110–315, §103(b)(5)(C), substituted “members of the authorizing committees” for “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”.
2006—Subsec. (a)(1)(B). Pub. L. 109–171, §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, §8014(b)(3), added subpar. (C).
Subsec. (a)(2), (3). Pub. L. 109–171, §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, §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.
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.
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.
1 See References in Text note below.
Prior to July 1, 2010, 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.
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.
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.
An eligible lender may determine that extenuating circumstances exist under the regulations promulgated pursuant to paragraph (1)(A) if, during the period beginning January 1, 2007, and ending December 31, 2009, an applicant for a loan under this section—
(I) is or has been delinquent for 180 days or fewer on mortgage loan payments or on medical bill payments during such period; and
(II) does not otherwise have an adverse credit history, as determined by the lender in accordance with the regulations promulgated pursuant to paragraph (1)(A), as such regulations were in effect on the day before May 7, 2008.
In this subparagraph, the term “mortgage loan” means an extension of credit to a borrower that is secured by the primary residence of the borrower.
Nothing in this subparagraph shall be construed to limit an eligible lender's authority under the regulations promulgated pursuant to paragraph (1)(A) to determine that extenuating circumstances exist.
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.
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.
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)(i) during any period during which the parent borrower or the graduate or professional student borrower meets the conditions required for a deferral under section 1077(a)(2)(C) or 1078(b)(1)(M) of this title; and
(ii) upon the request of the parent borrower, during any period during which the student on whose behalf the loan was borrowed by the parent borrower meets the conditions required for a deferral under section 1077(a)(2)(C)(i)(I) or 1078(b)(1)(M)(i)(I) of this title; and
(B)(i) in the case of a parent borrower, upon the request of the parent borrower, during the 6-month period beginning on the later of—
(I) the day after the date the student on whose behalf the loan was borrowed ceases to carry at least one-half the normal full-time academic workload (as determined by the institution); or
(II) if the parent borrower is also a student, the day after the date such parent borrower ceases to carry at least one-half such a workload; and
(ii) in the case of a graduate or professional student borrower, during the 6-month period beginning on the day after the date such student ceases to carry at least one-half the normal full-time academic workload (as determined by the institution).
Interest on loans made under this section for which payments of principal are deferred pursuant to paragraph (1) 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 not more frequently than quarterly by the lender.
Capitalization of interest under this paragraph shall not be deemed to exceed the annual insurable limit on account of the borrower.
No payments to reduce interest costs shall be paid pursuant to section 1078(a) of this title on loans made pursuant to this section.
Interest on loans made pursuant to this section shall be at the applicable rate of interest provided in section 1077a of this title.
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.
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.
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.
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 (d)(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.
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.
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.
(Pub. L. 89–329, title IV, §428B, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1386; amended Pub. L. 100–50, §10(o), (p)(2), (q), (r)(1), June 3, 1987, 101 Stat. 343, 344; Pub. L. 102–325, title IV, §418, July 23, 1992, 106 Stat. 531; Pub. L. 103–66, title IV, §4109(a), Aug. 10, 1993, 107 Stat. 369; Pub. L. 105–178, title VIII, §8301(a)(2), June 9, 1998, 112 Stat. 497; Pub. L. 105–244, title IV, §§416(a)(2), 419, Oct. 7, 1998, 112 Stat. 1680, 1694; Pub. L. 109–171, title VIII, §§8005(c), 8014(g), Feb. 8, 2006, 120 Stat. 158, 171; Pub. L. 110–227, §§3(a), 4, May 7, 2008, 122 Stat. 742, 743; Pub. L. 110–315, title IV, §424(a), Aug. 14, 2008, 122 Stat. 3232; Pub. L. 111–39, title IV, §402(f)(2), July 1, 2009, 123 Stat. 1943; Pub. L. 111–152, title II, §2205, Mar. 30, 2010, 124 Stat. 1075.)
A prior section 1078–2, Pub. L. 89–329, title IV, §428B, as added Pub. L. 96–374, title IV, §419, Oct. 3, 1980, 94 Stat. 1424; amended Pub. L. 97–35, title V, §§532(b)(3), 534(a)(2), (c)(1), (2), Aug. 13, 1981, 95 Stat. 452, 454; Pub. L. 98–79, §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.
2010—Subsec. (a)(1). Pub. L. 111–152 substituted “Prior to July 1, 2010, a graduate” for “A graduate” in introductory provisions.
2009—Subsec. (e)(3)(B). Pub. L. 111–39, §402(f)(2)(A), substituted “subsection (d)(5)(B)” for “subsection (c)(5)(B)”.
Subsec. (e)(5). Pub. L. 111–39, §402(f)(2)(B), struck out par. (5) which related to notification to borrowers of availability of refinancing options for certain loans made before Oct. 17, 1986.
2008—Subsec. (a)(3). Pub. L. 110–227, §4, amended par. (3) generally. Prior to amendment, text read as follows: “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. (a)(3)(B)(i)(II). Pub. L. 110–315, §424(a)(1), added subcl. (II) and struck out former subcl. (II) which read as follows: “is not and has not been more than 89 days delinquent on the repayment of any other debt during such period.”
Subsec. (d)(1), (2). Pub. L. 110–315, §424(a)(2), added pars. (1) and (2) and struck out former pars. (1) and (2) which related to commencement of repayment and capitalization of interest.
Pub. L. 110–227, §3(a), amended pars. (1) and (2) generally. Prior to amendment, text related to commencement of repayment and capitalization of interest.
2006—Subsec. (a)(1). Pub. L. 109–171, §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, §8005(c)(1)(B), substituted “the graduate or professional student or the parents” for “the parents”.
Subsec. (a)(1)(B). Pub. L. 109–171, §8014(g)(1), (3), added subpar. (B). Former subpar. (B) redesignated (C).
Pub. L. 109–171, §8005(c)(1)(C), substituted “the graduate or professional student or the parents” for “the parents”.
Subsec. (a)(1)(C). Pub. L. 109–171, §8014(g)(2), redesignated subpar. (B) as (C).
Subsec. (b). Pub. L. 109–171, §8005(c)(2), substituted “any graduate or professional student or any parent” for “any parent”.
Subsec. (c)(2). Pub. L. 109–171, §8005(c)(3), substituted “graduate or professional student or parent” for “parent”.
Subsec. (d)(1). Pub. L. 109–171, §8005(c)(4), substituted “the graduate or professional student or the parent” for “the parent”.
1998—Subsec. (a). Pub. L. 105–244, §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, §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, §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, §418(a), substituted “Federal PLUS” for “PLUS” in section catchline.
Subsec. (a). Pub. L. 102–325, §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, §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, §418(b)(4), added subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 102–325, §418(c), (d), amended pars. (1) and (2) generally. Prior to amendment, pars. (1) and (2) read as follows:
“(1)
“(2)
Pub. L. 102–325, §418(b)(3), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e).
Subsec. (e). Pub. L. 102–325, §418(b)(3), redesignated subsec. (d) as (e).
1987—Subsec. (a). Pub. L. 100–50, §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, §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, §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, §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, §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, §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, §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.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Amendment by Pub. L. 110–315 effective for loans for which the first disbursement is made on or after July 1, 2008, see section 424(c) of Pub. L. 110–315, set out as a note under section 1078 of this title.
Amendment by section 3(a) of Pub. L. 110–227 effective for loans first disbursed on or after July 1, 2008, see section 3(c) of Pub. L. 110–227, set out as a note under section 1078 of this title.
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 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.
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.”
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.
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.
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).”
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.
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.
(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—
(aa) for the purposes of obtaining income contingent repayment or income-based repayment, and only if the loan has been submitted to the guaranty agency for default aversion or if the loan is already in default;
(bb) for the purposes of using the public service loan forgiveness program under section 1087e(m) of this title; or
(cc) for the purpose of using the no accrual of interest for active duty service members benefit offered under section 1087e(o) of this title.
For the purpose of paragraph (1), the term “eligible student loans” means loans—
(A) made, insured, or guaranteed under this part, and first disbursed before July 1, 2010, 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 part E of title VIII of the Public Health Service Act [42 U.S.C. 297a et seq.].
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 before July 1, 2010;
(F) that the lender shall disclose to a prospective borrower, in simple and understandable terms, at the time the lender provides an application for a consolidation loan—
(i) whether consolidation would result in a loss of loan benefits under this part or part C, including loan forgiveness, cancellation, and deferment;
(ii) with respect to Federal Perkins Loans under part D—
(I) that if a borrower includes a Federal Perkins Loan under part D in the consolidation loan, the borrower will lose all interest-free periods that would have been available for the Federal Perkins Loan, such as—
(aa) the periods during which no interest accrues on such loan while the borrower is enrolled in school at least half-time;
(bb) the grace period under section 1087dd(c)(1)(A) of this title; and
(cc) the periods during which the borrower's student loan repayments are deferred under section 1087dd(c)(2) of this title;
(II) that if a borrower includes a Federal Perkins Loan in the consolidation loan, the borrower will no longer be eligible for cancellation of part or all of the Federal Perkins Loan under section 1087ee(a) of this title; and
(III) the occupations listed in section 1087ee of this title that qualify for Federal Perkins Loan cancellation under section 1087ee(a) of this title;
(iii) the repayment plans that are available to the borrower;
(iv) the options of the borrower to prepay the consolidation loan, to pay such loan on a shorter schedule, and to change repayment plans;
(v) that borrower benefit programs for a consolidation loan may vary among different lenders;
(vi) the consequences of default on the consolidation loan; and
(vii) that by applying for a consolidation loan, the borrower is not obligated to agree to take the consolidation loan; and
(G) such other terms and conditions as the Secretary or the guaranty agency may specifically require of the lender to carry out this section.
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).
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).
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 consumer reporting agencies 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 consumer reporting agencies.
If, before July 1, 2010, 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 or income-based repayment terms acceptable to the borrower from such a lender, or chooses to obtain a consolidation loan for the purposes of using the public service loan forgiveness program offered under section 1087e(m) of this title, the Secretary shall offer any such borrower who applies for it, a Federal Direct Consolidation loan. In addition, in the event that a borrower chooses to obtain a consolidation loan for the purposes of using the no accrual of interest for active duty service members program offered under section 1087e(o) of this title, the Secretary shall offer a Federal Direct Consolidation loan to any such borrower who applies for participation in such program. A direct consolidation loan offered under this paragraph shall, as requested by the borrower, be repaid either pursuant to income contingent repayment under part C of this subchapter, pursuant to income-based repayment under section 1098e of this title, or pursuant to any other repayment provision under this section, except that if a borrower intends to be eligible to use the public service loan forgiveness program under section 1087e(m) of this title, such loan shall be repaid using one of the repayment options described in section 1087e(m)(1)(A) of this title. 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.
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.
(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, and that is disbursed before July 1, 2010, 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, and disbursed before July 1, 2010, 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.
(A) Notwithstanding any other provision of this part, to the extent authorized by its certificate of insurance under subsection (b)(2) 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, income-sensitive, or income-based repayment schedules, established by the lender in accordance with the regulations of the Secretary. Except as required by such income-sensitive or income-based 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.
Notwithstanding paragraph (2)—
(A) except in the case of an income-based repayment schedule under section 1098e of this title, 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;
(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; and
(C) an income-based repayment schedule under section 1098e of this title shall not be available to a consolidation loan borrower who used the proceeds of the loan to discharge the liability on a loan under section 1078–2 of this title, or a Federal Direct PLUS loan, made on behalf of a dependent student.
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.
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.
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.
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.
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.].
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).
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.
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.
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).
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).
Notwithstanding any other provision of this chapter and part C of subchapter I of chapter 34 of title 42, additional reserves shall not be required for any guaranty agency with respect to a loan made under this subsection.
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 account established under section 710 of the Public Health Service Act [42 U.S.C. 292i].
The Secretary is authorized to promulgate such regulations as may be necessary to facilitate carrying out the provisions of this subsection.
The authority to make loans under this section expires at the close of June 30, 2010. No loan may be made under this section for which the disbursement is on or after July 1, 2010. 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.
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.
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.
The Secretary shall deposit all fees collected pursuant to this subsection into the insurance fund established in section 1081 of this title.
(Pub. L. 89–329, title IV, §428C, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1388; amended Pub. L. 100–50, §10(s), June 3, 1987, 101 Stat. 345; Pub. L. 102–325, title IV, §419, July 23, 1992, 106 Stat. 532; Pub. L. 102–408, title III, §306(a), (b), Oct. 13, 1992, 106 Stat. 2084, 2086; Pub. L. 103–66, title IV, §§4046(a), (b)(2), 4106(a), Aug. 10, 1993, 107 Stat. 360, 363, 368; Pub. L. 103–208, §2(c)(33)–(37), Dec. 20, 1993, 107 Stat. 2466; Pub. L. 103–382, title III, §356, Oct. 20, 1994, 108 Stat. 3967; Pub. L. 104–208, div. A, title I, §101(e) [title VI, §602(b)(1)(A)(ii)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–283; Pub. L. 105–33, title VI, §6104(3), Aug. 5, 1997, 111 Stat. 652; Pub. L. 105–78, title VI, §609(b)–(e), Nov. 13, 1997, 111 Stat. 1522, 1523; Pub. L. 105–244, title IV, §§416(b)(2), 420, Oct. 7, 1998, 112 Stat. 1682, 1695; Pub. L. 107–139, §1(a)(2), Feb. 8, 2002, 116 Stat. 8; Pub. L. 109–171, title VIII, §§8004(b)(3), 8009(a), (b)(2), (c), Feb. 8, 2006, 120 Stat. 158, 163, 164; Pub. L. 109–234, title VII, §7015(a), (c), (d), June 15, 2006, 120 Stat. 485; Pub. L. 110–84, title II, §203(b)(1), (2), Sept. 27, 2007, 121 Stat. 794, 795; Pub. L. 110–315, title IV, §§425(a)–(b)(2), (c), (d)(1), (e), 432(b)(3), Aug. 14, 2008, 122 Stat. 3233–3235, 3246; Pub. L. 111–39, title IV, §402(c)(1), (f)(3), July 1, 2009, 123 Stat. 1940, 1943; Pub. L. 111–152, title II, §2206(a), Mar. 30, 2010, 124 Stat. 1075.)
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. Subparts I and II of part A of title VII of the Act are classified generally to subpart I (§292 et seq.) and subpart II (§292q et seq.), respectively, of part A of subchapter V of chapter 6A of Title 42, The Public Health and Welfare. Part E of title VIII of the Act is classified generally to part E (§297a et seq.) of subchapter VI of chapter 6A 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.
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.
A prior section 1078–3, Pub. L. 89–329, title IV, §428C, as added Pub. L. 99–272, title XVI, §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.
2010—Subsec. (a)(4)(A). Pub. L. 111–152, §2206(a)(1), inserted “, and first disbursed before July 1, 2010” after “under this part”.
Subsec. (b)(1)(E). Pub. L. 111–152, §2206(a)(2)(A), inserted “, and before July 1, 2010” before semicolon.
Subsec. (b)(5). Pub. L. 111–152, §2206(a)(2)(B), substituted “If, before July 1, 2010,” for “In the event that”.
Subsec. (c)(1)(A)(ii). Pub. L. 111–152, §2206(a)(3)(A), inserted “and that is disbursed before July 1, 2010,” after “2006,”.
Subsec. (c)(1)(C). Pub. L. 111–152, §2206(a)(3)(B), inserted “and disbursed before July 1, 2010,” after “1994,”.
Subsec. (e). Pub. L. 111–152, §2206(a)(4), substituted “June 30, 2010. No loan may be made under this section for which the disbursement is on or after July 1, 2010.” for “September 30, 2014.”
2009—Subsec. (a)(4)(E). Pub. L. 111–39, §402(f)(3)(A), substituted “part E” for “subpart II of part B”.
Subsec. (c)(2)(A). Pub. L. 111–39, §402(f)(3)(B), in introductory provisions, substituted “subsection (b)(2)” for “subsection (b)(2)(F)” and inserted comma after “graduated”.
Subsec. (c)(3)(A). Pub. L. 111–39, §402(c)(1), substituted “section 1098e of this title,” for “section 1098e of this title”.
Subsec. (d)(3)(D). Pub. L. 111–39, §402(f)(3)(C), substituted “loan insurance account” for “loan insurance fund”.
Subsec. (f)(3). Pub. L. 111–39, §402(f)(3)(D), substituted “this subsection” for “subsection (a) of this section”.
2008—Subsec. (a)(3)(B)(i)(V)(cc). Pub. L. 110–315, §425(a), added item (cc).
Subsec. (b)(1)(F), (G). Pub. L. 110–315, §425(b)(1), added subpar. (F) and redesignated former subpar. (F) as (G).
Subsec. (b)(4)(E)(i). Pub. L. 110–315, §432(b)(3)(A), substituted “consumer reporting agencies” for “credit bureau organizations”.
Subsec. (b)(4)(E)(ii). Pub. L. 110–315, §432(b)(3)(B), substituted “consumer reporting agencies” for “organizations”.
Subsec. (b)(5). Pub. L. 110–315, §425(c), made technical correction to directory language of Pub. L. 110–84, §203(b)(2)(C). See 2007 Amendment note below.
Pub. L. 110–315, §425(b)(2), substituted “A direct consolidation loan offered under this paragraph” for “Such direct consolidation loan” and inserted after first sentence “In addition, in the event that a borrower chooses to obtain a consolidation loan for the purposes of using the no accrual of interest for active duty service members program offered under section 1087e(o) of this title, the Secretary shall offer a Federal Direct Consolidation loan to any such borrower who applies for participation in such program.”
Subsec. (c)(2)(A). Pub. L. 110–315, §425(d)(1)(A), in introductory provisions, substituted “income-sensitive, or income-based” for “or income-sensitive” and inserted “or income-based” after “such income-sensitive”.
Subsec. (c)(3). Pub. L. 110–315, §425(d)(1)(B), inserted “except in the case of an income-based repayment schedule under section 1098e of this title” before “a repayment schedule” in subpar. (A) and added subpar. (C).
Subsec. (e). Pub. L. 110–315, §425(e), substituted “2014” for “2012”.
2007—Subsec. (a)(3)(B)(i)(V). Pub. L. 110–84, §203(b)(1)(A), amended subcl. (V) generally. Prior to amendment, subcl. (V) read as follows: “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.”
Subsec. (a)(3)(B)(i)(V)(aa). Pub. L. 110–84, §203(b)(2)(A), substituted “income contingent repayment or income-based repayment,” for “an income contingent repayment plan,” and inserted “or if the loan is already in default” before semicolon.
Subsec. (b)(5). Pub. L. 110–84, §203(b)(2)(C), as amended by Pub. L. 110–315, §425(c), inserted “, pursuant to income-based repayment under section 1098e of this title,” after “part C of this subchapter” in third sentence.
Pub. L. 110–84, §203(b)(2)(B), inserted “or income-based repayment terms” after “income-sensitive repayment terms” in first sentence.
Pub. L. 110–84, §203(b)(1)(B), (C), inserted “or chooses to obtain a consolidation loan for the purposes of using the public service loan forgiveness program offered under section 1087e(m) of this title,” after “from such a lender,” in first sentence and “, except that if a borrower intends to be eligible to use the public service loan forgiveness program under section 1087e(m) of this title, such loan shall be repaid using one of the repayment options described in section 1087e(m)(1)(A) of this title” before period at end of second sentence.
2006—Subsec. (a)(3)(A)(ii)(I). Pub. L. 109–171, §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, §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, §8009(a)(1)(C)–(E), added subcl. (V).
Subsec. (a)(3)(C). Pub. L. 109–171, §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, §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, §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, §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, §7015(d). See Effective Date of 2006 Amendment note below.
Subsec. (e). Pub. L. 109–171, §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, §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, §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, §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, §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, §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, §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, §420(d), substituted “September 30, 2004” for “September 30, 2002”.
Subsec. (f)(2), (3). Pub. L. 105–244, §420(e), added par. (2) and redesignated former par. (2) as (3).
1997—Subsec. (a)(4)(C) to (E). Pub. L. 105–78, §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, §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, §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, §609(d), added par. (6).
Subsec. (c)(1)(A). Pub. L. 105–78, §609(e)(1), substituted “subparagraph (B), (C), or (D)” for “subparagraph (B) or (D)”.
Subsec. (c)(1)(D). Pub. L. 105–78, §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, §4046(a)(1), amended heading.
Subsec. (a)(3)(A). Pub. L. 103–208, §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, §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, §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, §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, §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, §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, §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, §4046(a)(2)(C), added par. (5).
Subsec. (c)(1)(B), (C). Pub. L. 103–66, §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, §2(c)(36), inserted period at end of cl. (vi). See Codification note above.
Pub. L. 103–66, §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, §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, §2(c)(37), inserted “be an amount” before “equal to”.
Subsec. (c)(3)(B). Pub. L. 103–66, §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, §4106(a), added subsec. (f).
1992—Pub. L. 102–325, §419(a), substituted “Federal consolidation” for “Consolidation” in section catchline.
Subsec. (a)(3)(A)(i). Pub. L. 102–325, §419(b)(1)(A), substituted “$7,500” for “$5,000”.
Subsec. (a)(3)(A)(ii). Pub. L. 102–325, §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, §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, §419(d), added subpar. (C).
Subsec. (a)(4)(A). Pub. L. 102–325, §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, §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, §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, §306(a), added subsec. (d). Former subsec. (d) redesignated (e).
Pub. L. 102–325, §419(g), substituted “September 30, 1998” for “September 30, 1992”.
Subsec. (e). Pub. L. 102–408, §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, §419(g). See above.
Pub. L. 102–408, §306(a)(1), redesignated subsec. (d) as subsec. (e).
1987—Subsec. (a)(1)(C). Pub. L. 100–50, §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, §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, §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, §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, §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, §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, §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.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), except as otherwise provided, see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 111–39, title IV, §402(c)(2), July 1, 2009, 123 Stat. 1941, provided that: “The amendment made by paragraph (1) [amending this section] shall be effective as if enacted as part of the amendments in section 425(d)(1) of the Higher Education Opportunity Act (Public Law 110–315), and shall take effect on July 1, 2009.”
Pub. L. 110–315, title IV, §425(d)(2), Aug. 14, 2008, 122 Stat. 3235, provided that: “The amendments made by this subsection [amending this section] shall take effect on July 1, 2009.”
Pub. L. 110–84, title II, §203(c), Sept. 27, 2007, 121 Stat. 795, provided that:
“(1)
“(2)
Pub. L. 109–234, title VII, §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.
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.
Section 101(e) [title VI, §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)).”
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].”
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.
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.
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.”
Pub. L. 99–272, title XVI, §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.”
1 So in original. No cl. (ii) has been enacted.
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.
(Pub. L. 89–329, title IV, §428D, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1393.)
Section, Pub. L. 89–329, title IV, §428E, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1393; amended Pub. L. 100–50, §10(t), June 3, 1987, 101 Stat. 345, related to State garnishment law requirements.
Each guaranty agency, 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, shall—
(i) if practicable, sell the loan to an eligible lender; or
(ii) on or before September 30, 2011, assign the loan to the Secretary if—
(I) the Secretary has determined that market conditions unduly limit a guaranty agency's ability to sell loans under clause (i); and
(II) the guaranty agency has been unable to sell loans under clause (i).
Neither the guaranty agency nor the Secretary shall demand from a borrower as monthly payment amounts described in subparagraph (A) more than is reasonable and affordable based on the borrower's total financial circumstances.
Upon the sale or assignment of the loan, the Secretary, guaranty agency or other holder of the loan shall request any consumer reporting agency to which the Secretary, guaranty agency or holder, as applicable, reported the default of the loan, to remove the record of the default from the borrower's credit history.
With respect to a loan sold under subparagraph (A)(i)—
(i) the guaranty agency—
(I) shall repay the Secretary 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) may, in order to defray collection costs—
(aa) charge to the borrower an amount not to exceed 18.5 percent of the outstanding principal and interest at the time of the loan sale; and
(bb) retain such amount from the proceeds of the loan sale; and
(ii) the Secretary shall reinstate the Secretary's obligation to—
(I) reimburse the guaranty agency for the amount that the agency may, in the future, expend to discharge the guaranty agency's insurance obligation; and
(II) pay to the holder of such loan a special allowance pursuant to section 1087–1 of this title.
With respect to a loan assigned under subparagraph (A)(ii)—
(i) the guaranty agency shall add to the principal and interest outstanding at the time of the assignment of such loan an amount equal to the amount described in subparagraph (D)(i)(II)(aa); and
(ii) the Secretary shall pay the guaranty agency, for deposit in the agency's Operating Fund established pursuant to section 1072b of this title, an amount equal to the amount added to the principal and interest outstanding at the time of the assignment in accordance with clause (i).
A loan shall not be sold to an eligible lender under subparagraph (A)(i) if such lender 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.
A loan that does not meet the requirements of subparagraph (A) may also be eligible for sale or assignment 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.
Amounts received by the Secretary pursuant to the sale of such loans by a guaranty agency under paragraph (1)(A)(i) shall be deducted from the calculations of the amount of reimbursement for which the agency is eligible under paragraph (1)(D)(ii)(I) for the fiscal year in which the amount was received, notwithstanding the fact that the default occurred in a prior fiscal year.
Any borrower whose loan is sold or assigned under paragraph (1)(A) 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 or assignment.
A loan that is sold or assigned under paragraph (1) 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.
A borrower may obtain the benefits available under this subsection with respect to rehabilitating a loan (whether by loan sale or assignment) only one time per loan.
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 or assigned to the Secretary) 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.
Each program described in subsection (b) shall include making available financial and economic education materials for a borrower who has rehabilitated a loan.
(Pub. L. 89–329, title IV, §428F, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1394; amended Pub. L. 100–50, §10(u), June 3, 1987, 101 Stat. 346; Pub. L. 101–239, title II, §2005(a), Dec. 19, 1989, 103 Stat. 2116; Pub. L. 102–325, title IV, §420, July 23, 1992, 106 Stat. 534; Pub. L. 103–208, §2(c)(38)–(40), Dec. 20, 1993, 107 Stat. 2466; Pub. L. 105–244, title IV, §421, Oct. 7, 1998, 112 Stat. 1696; Pub. L. 109–171, title VIII, §8014(h), Feb. 8, 2006, 120 Stat. 171; Pub. L. 110–315, title IV, §426, Aug. 14, 2008, 122 Stat. 3235; Pub. L. 111–39, title IV, §402(d)(1), July 1, 2009, 123 Stat. 1941.)
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 (§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.
2009—Subsec. (a)(1). Pub. L. 111–39, §402(d)(1)(A)(i), amended par. (1) generally. Prior to amendment, par. (1) related to the sale of a loan by a guaranty agency or the Secretary.
Subsec. (a)(2). Pub. L. 111–39, §402(d)(1)(A)(ii), substituted “paragraph (1)(A)(i)” for “paragraph (1) of this subsection” and “paragraph (1)(D)(ii)(I)” for “paragraph (1)(B)(ii) of this subsection”.
Subsec. (a)(3). Pub. L. 111–39, §402(d)(1)(A)(iii)(II), substituted “sale or assignment.” for “sale.”
Pub. L. 111–39, §402(d)(1)(A)(iii)(I), which directed substitution of “sold or assigned under paragraph (1)(A)” for “sold under paragraph (2)”, was executed by making the substitution for “sold under paragraph (1)” to reflect the probable intent of Congress.
Subsec. (a)(4). Pub. L. 111–39, §402(d)(1)(A)(iv), substituted “that is sold or assigned under paragraph (1)” for “which is sold under paragraph (1) of this subsection”.
Subsec. (a)(5). Pub. L. 111–39, §402(d)(1)(A)(v), inserted “(whether by loan sale or assignment)” after “rehabilitating a loan”.
Subsec. (b). Pub. L. 111–39, §402(d)(1)(B), inserted “or assigned to the Secretary” after “sold to an eligible lender”.
2008—Subsec. (a)(1)(A). Pub. L. 110–315, §426(1)(A), inserted at end “Upon the sale of the loan to an eligible lender, the guaranty agency or other holder of the loan shall request any consumer reporting agency to which the guaranty agency or holder, as applicable, reported the default of the loan, to remove the record of default from the borrower's credit history.”
Subsec. (a)(5). Pub. L. 110–315, §426(1)(B), added par. (5).
Subsec. (c). Pub. L. 110–315, §426(2), added subsec. (c).
2006—Subsec. (a)(1)(A). Pub. L. 109–171, §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, §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, §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, §2(c)(39), substituted “paragraph (1) of this subsection” for “this paragraph”.
Subsec. (b). Pub. L. 103–208, §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, §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, §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.”
Pub. L. 111–39, title IV, §402(d)(2), July 1, 2009, 123 Stat. 1942, provided that: “The amendments made by paragraph (1) [amending this section] shall be effective on the date of enactment of this Act [July 1, 2009], and shall apply to any loan on which monthly payments described in section 428F(a)(1)(A) [42 U.S.C. 1078–6(a)(1)(A)] were paid before, on, or after such date of enactment.”
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. 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. 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. 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.
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.”
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.
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.
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.
Beginning on October 1, 2011, the special rule under paragraph (3) shall be applied by substituting “15 percent” for “10 percent”.
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.
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.
Beginning on October 1, 2011, the exemption to the requirements of paragraph (1) in the second sentence of such paragraph shall be applied by substituting “15 percent” for “10 percent”.
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)(II) 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), 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 by the lender in substantially equal weekly or monthly installments, as the case may be, over the period of enrollment for which the loan is made.
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.
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.
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.
For purposes of this section, a period of enrollment begins on the first day that classes begin for the applicable period of enrollment.
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.
(Pub. L. 89–329, title IV, §428G, as added Pub. L. 101–239, title II, §2004(a), Dec. 19, 1989, 103 Stat. 2115; amended Pub. L. 101–508, title III, §3003(a), Nov. 5, 1990, 104 Stat. 1388–26; Pub. L. 102–325, title IV, §421, July 23, 1992, 106 Stat. 534; Pub. L. 103–66, title IV, §4109(b), Aug. 10, 1993, 107 Stat. 369; Pub. L. 103–208, §2(c)(41), Dec. 20, 1993, 107 Stat. 2466; Pub. L. 105–244, title IV, §422(a)–(c), Oct. 7, 1998, 112 Stat. 1696; Pub. L. 109–171, title VIII, §8010, Feb. 8, 2006, 120 Stat. 164; Pub. L. 110–315, title IV, §427, Aug. 14, 2008, 122 Stat. 3235; Pub. L. 111–39, title IV, §402(f)(4), July 1, 2009, 123 Stat. 1943.)
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 1078–1 of this title, referred to in subsec. (c)(2), was repealed by Pub. L. 103–66, title IV, §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, §418, Oct. 7, 1998, 112 Stat. 1691.
Text of subsec. (a)(3) and second sentence of subsec. (b)(1), which was temporarily added by Pub. L. 105–244, §422(a), (b), and then omitted, was restored pursuant to amendment by Pub. L. 109–171, §8010(1), (2). See 1998 and 2006 Amendment notes and Effective and Termination Dates of 1998 Amendment note below.
2009—Subsec. (c)(1). Pub. L. 111–39, §402(f)(4)(A), substituted “section 1078(a)(2)(A)(i)(II)” for “section 1078(a)(2)(A)(i)(III)”.
Subsec. (c)(3). Pub. L. 111–39, §402(f)(4)(B), added par. (3) and struck out former par. (3) which read as follows: “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.”
2008—Subsec. (a)(4). Pub. L. 110–315, §427(a), added par. (4).
Subsec. (b)(3). Pub. L. 110–315, §427(b), added par. (3).
2006—Subsec. (a)(3). Pub. L. 109–171, §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, §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, §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, §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, §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, §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, §421(a), added par. (3).
Subsec. (d)(2). Pub. L. 102–325, §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, §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.”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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 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, §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.”
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.
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.”
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.
1 See References in Text note below.
It is the purpose of this section to authorize insured loans under this part that are first disbursed before July 1, 2010, 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.
Prior to July 1, 2010, 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 for which the first disbursement is made before such date 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.
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.
Except as provided in paragraphs (2), (3), and (4), 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.
The maximum annual amount of loans under this section a graduate or professional student, or a student described in clause (ii), 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—
(i) in the case of such a student who is a graduate or professional student attending an eligible institution, $12,000; and
(ii) notwithstanding paragraph (4), in the case of an independent student, or a dependent student whose parents are unable to borrow under section 1078–2 of this title or the Federal Direct PLUS Loan Program, who has obtained a baccalaureate degree and who is enrolled in coursework specified in paragraph (3)(B) or (4)(B) of section 1091(b) of this title—
(I) $7,000 for coursework necessary for enrollment in a graduate or professional program; and
(II) $7,000 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 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.
The maximum aggregate amount of loans under this section a student described in subparagraph (A) may borrow shall be the amount described in paragraph (1), adjusted to reflect the increased annual limits described in subparagraph (A), as prescribed by the Secretary by regulation.
The maximum annual amount of loans under this section an undergraduate dependent student (except an undergraduate dependent 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 sum of the amount determined under paragraph (1), plus $2,000.
The maximum aggregate amount of loans under this section a student described in subparagraph (A) may borrow shall be $31,000.
The maximum annual amount of loans under this section an undergraduate independent student, or an undergraduate dependent 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 sum of the amount determined under paragraph (1), plus—
(i) 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) $6,000, if such student is enrolled in a program whose length is at least one academic year in length; or
(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 such 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) $7,000; 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; and
(iii) in the case of such a student enrolled in coursework specified in—
(I) section 1091(b)(3)(B) of this title, $6,000; or
(II) section 1091(b)(4)(B) of this title, $7,000.
The maximum aggregate amount of loans under this section a student described in subparagraph (A) may borrow shall be $57,500.
Interest capitalized shall not be deemed to exceed a maximum aggregate amount determined under subparagraph (B) of paragraph (2), (3), or (4).
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.
(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.
No payments to reduce interest costs shall be paid pursuant to section 1078(a) of this title on loans made pursuant to this section.
Interest on loans made pursuant to this section shall be at the applicable rate of interest provided in section 1077a of this title.
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.
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.
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.
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.
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, and that are first disbursed before July 1, 2010, 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.
(Pub. L. 89–329, title IV, §428H, as added Pub. L. 102–325, title IV, §422, July 23, 1992, 106 Stat. 535; amended Pub. L. 103–66, title IV, §§4047(a), 4102(b), Aug. 10, 1993, 107 Stat. 363, 366; Pub. L. 103–208, §2(c)(42)–(45), Dec. 20, 1993, 107 Stat. 2466, 2467; Pub. L. 104–134, title I, §101(d) [title V, §514(a)], Apr. 26, 1996, 110 Stat. 1321–211, 1321–245; renumbered title I, Pub. L. 104–140, §1(a), May 2, 1996, 110 Stat. 1327; Pub. L. 105–244, title IV, §423, Oct. 7, 1998, 112 Stat. 1696; Pub. L. 109–171, title VIII, §§8005(d), 8014(b)(2), Feb. 8, 2006, 120 Stat. 159, 169; Pub. L. 110–227, §2(a), May 7, 2008, 122 Stat. 740; Pub. L. 110–315, title IV, §428(a), Aug. 14, 2008, 122 Stat. 3235; Pub. L. 111–39, title IV, §402(f)(5), July 1, 2009, 123 Stat. 1944; Pub. L. 111–152, title II, §2207, Mar. 30, 2010, 124 Stat. 1076.)
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.
2010—Subsec. (a). Pub. L. 111–152, §2207(1), inserted “that are first disbursed before July 1, 2010,” after “under this part”.
Subsec. (b). Pub. L. 111–152, §2207(2), substituted “Prior to July 1, 2010, any student” for “Any student” and inserted “for which the first disbursement is made before such date” after “unsubsidized Federal Stafford Loan” in introductory provisions.
Subsec. (h). Pub. L. 111–152, §2207(3), inserted “and that are first disbursed before July 1, 2010,” after “July 1, 2006,”.
2009—Subsec. (d)(2). Pub. L. 111–39, §402(f)(5)(A), amended heading generally, resulting in text identical to that after execution of the amendment by Pub. L. 110–315, §428(a)(1)(A). See 2008 Amendment note below.
Subsec. (e)(6). Pub. L. 111–39, §402(f)(5)(B), amended par. (6) generally, resulting in text identical to that after execution of the amendment by Pub. L. 105–244, §423(d). See 1998 Amendment note below.
2008—Subsec. (d). Pub. L. 110–227 amended subsec. (d) generally. Prior to amendment, subsec. (d) related to loan limits.
Subsec. (d)(2). Pub. L. 110–315, §428(a)(1)(A), which directed substitution of “Graduate, professional, and independent postbaccalaureate students” for “Graduate and professional students” in heading, was executed by substituting “graduate, professional, and independent postbaccalaureate students” for “graduate and professional students” to reflect the probable intent on Congress.
Subsec. (d)(2)(A). Pub. L. 110–315, §428(a)(1)(B)(i), inserted “, or a student described in clause (ii),” after “graduate or professional student” in introductory provisions.
Subsec. (d)(2)(A)(ii). Pub. L. 110–315, §428(a)(1)(B)(ii), added cl. (ii) and struck out former cl. (ii) which read as follows: “in the case of a graduate student enrolled in coursework specified in sections 1091(b)(3)(B) and 1091(b)(4)(B) of this title, $7,000;”.
Subsec. (d)(4)(A)(iii). Pub. L. 110–315, §428(a)(2), added cl. (iii) and struck out former cl. (iii) which read as follows: “in the case of such a student enrolled in coursework specified in sections 1091(b)(3)(B) and 1091(b)(4)(B) of this title, $6,000 for coursework necessary for enrollment in an undergraduate degree or certificate program.”
2006—Subsec. (d)(2)(C). Pub. L. 109–171, §8005(d)(1), substituted “$12,000” for “$10,000”.
Subsec. (d)(2)(D). Pub. L. 109–171, §8005(d)(2), substituted “$7,000” for “$5,000” in cls. (i) and (ii).
Subsec. (h). Pub. L. 109–171, §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, §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, §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, §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, §423(b)(1)(C), (D), added subpar. (D).
Subsec. (d)(3). Pub. L. 105–244, §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, §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, §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, §423(e), added par. (7).
Subsec. (f). Pub. L. 105–244, §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, §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, §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, §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, §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, §2(c)(44), substituted “section 1077a” for “section 1077a(e)”.
Subsec. (e)(5), (6). Pub. L. 103–66, §4047(a)(3), added pars. (5) and (6).
Subsec. (f). Pub. L. 103–66, §4102(b)(1)(A), substituted “Origination fee” for “Insurance premium” in section catchline.
Subsec. (f)(1). Pub. L. 103–66, §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, §4102(b)(1)(D), substituted “origination fee” for “combined fee and premium”.
Subsec. (f)(3). Pub. L. 103–66, §4102(b)(1)(E), substituted “origination fee” for “combined origination fee and insurance premium”.
Subsec. (f)(4). Pub. L. 103–66, §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, §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, §2(c)(45), redesignated subsec. (l) as (h). See Codification note above.
Subsec. (l). Pub. L. 103–208, §2(c)(45), redesignated subsec. (l) as (h). See Codification note above.
Pub. L. 103–66, §4102(b)(2), added subsec. (l).
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 110–315, title IV, §428(b), Aug. 14, 2008, 122 Stat. 3236, provided that: “The amendments made by this section [amending this section] shall take effect for loans for which the first disbursement is made on or after July 1, 2008.”
Pub. L. 110–227, §2(c), May 7, 2008, 122 Stat. 742, provided that: “The amendments made by this section [amending this section] shall be effective for loans first disbursed on or after July 1, 2008.”
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.
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.
Section 101(d) [title V, §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.”
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.
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.
Pub. L. 110–227, §2(b), May 7, 2008, 122 Stat. 742, provided that: “Loan limit increases authorized by the amendments made by this section [amending this section] shall be available only to students who meet the requirements of section 484(a) of the Higher Education Act of 1965 (20 U.S.C. 1091(a)).”
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.”
Section, Pub. L. 89–329, title IV, §428I, as added Pub. L. 102–325, title IV, §422, July 23, 1992, 106 Stat. 536; amended Pub. L. 103–208, §2(c)(46), Dec. 20, 1993, 107 Stat. 2467; Pub. L. 109–171, title VIII, §8014(i), Feb. 8, 2006, 120 Stat. 171, related to special insurance and reinsurance rules.
Repeal effective Oct. 1, 2007, except that section as in effect on the day before Sept. 27, 2005, shall apply to eligible lenders that received a designation under subsec. (a) of this section prior to Oct. 1, 2007, for the remainder of the year for which the designation was made, see section 302(c) of Pub. L. 110–84, set out as an Effective Date of 2007 Amendment note under section 1078 of this title.
It is the purpose of this section to encourage individuals to enter and continue in the teaching profession.
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 or location that qualifies under section 1087ee(a)(2)(A) of this title for loan cancellation for Perkins loan recipients who teach in such schools or locations; 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.
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.
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.
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, or, in the case of a teacher who is employed by an educational service agency, as certified by the chief administrative officer of such agency, 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.
The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.
Nothing in this section shall be construed to authorize any refunding of any repayment of a loan.
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.
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.
No borrower may, for the same service, receive a benefit under both this section and—
(A) section 1078–11 of this title;
(B) section 1087e(m) of this title; or
(C) subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.).
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.
For purposes of this section, the term “year”, where applied to service as a teacher, means an academic year as defined by the Secretary.
(Pub. L. 89–329, title IV, §428J, as added Pub. L. 102–325, title IV, §422, July 23, 1992, 106 Stat. 541; amended Pub. L. 103–82, title I, §102(c)(2), Sept. 21, 1993, 107 Stat. 824; Pub. L. 103–208, §2(c)(47)–(51), Dec. 20, 1993, 107 Stat. 2467; Pub. L. 105–244, title IV, §424, Oct. 7, 1998, 112 Stat. 1698; Pub. L. 108–409, §3(a)(1)(A), (b)(1), Oct. 30, 2004, 118 Stat. 2300; Pub. L. 109–171, title VIII, §8013(e)(1), Feb. 8, 2006, 120 Stat. 167; Pub. L. 110–315, title IV, §429, Aug. 14, 2008, 122 Stat. 3236; Pub. L. 111–39, title IV, §402(f)(6), July 1, 2009, 123 Stat. 1944.)
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)(C), is Pub. L. 101–610, Nov. 16, 1990, 104 Stat. 3127. Subtitle D of title I of the Act is classified generally to division D of subchapter I (§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.
2009—Subsec. (c)(1). Pub. L. 111–39, §402(f)(6)(A), inserted at end “No borrower may receive a reduction of loan obligations under both this section and section 1087j of this title.”
Subsec. (g)(2)(B) to (D). Pub. L. 111–39, §402(f)(6)(B), inserted “or” at end of subpar. (B), redesignated subpar. (D) as (C) and substituted “12601” for “12571”, and struck out former subpar. (C) which read as follows: “section 1087j of this title; or”.
2008—Subsec. (b)(1)(A). Pub. L. 110–315, §429(1), inserted “or location” after “a school” and “or locations” after “schools”.
Subsec. (c)(1). Pub. L. 110–315, §429(2), struck out at end “No borrower may receive a reduction of loan obligations under both this section and section 1087j of this title.”
Subsec. (c)(3)(B)(iii). Pub. L. 110–315, §429(3), inserted “or, in the case of a teacher who is employed by an educational service agency, as certified by the chief administrative officer of such agency,” after “borrower is employed,”.
Subsec. (g)(2). Pub. L. 110–315, §429(4), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “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. 12571 et seq.).”
2006—Subsec. (b)(1)(B). Pub. L. 109–171, §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, §8013(e)(1)(B), added par. (3).
2004—Subsec. (b)(1). Pub. L. 108–409, §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, §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, §2(c)(47), substituted “section” for “sections” in introductory provisions.
Pub. L. 103–82, §102(c)(2)(A), substituted “October 1, 1989” for “October 1, 1992” in introductory provisions.
Subsec. (b)(1)(B). Pub. L. 103–208, §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, §2(c)(49), substituted “year of service” for “academic year” wherever appearing.
Subsec. (c)(5). Pub. L. 103–82, §102(c)(2)(B), added par. (5).
Subsec. (d). Pub. L. 103–208, §2(c)(50), substituted “to eligible” for “of eligibility” in heading.
Subsec. (e). Pub. L. 103–208, §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.”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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. 108–409, §3(a)(2), Oct. 30, 2004, 118 Stat. 2300, provided that:
“(A)
“(B)
Pub. L. 108–409, §3(b)(3), Oct. 30, 2004, 118 Stat. 2301, as amended by Pub. L. 109–150, §2(c)(1), Dec. 30, 2005, 119 Stat. 2884; Pub. L. 109–171, title VIII, §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, §2(c)(1), which amended section 3(b)(3) of Pub. L. 108–409, set out above, was repealed by Pub. L. 109–171, §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, §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.]
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. 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.
Pub. L. 108–409, §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.”
1 See References in Text note below.
The Secretary shall forgive, in accordance with this section, the qualified loan amount described in subsection (c) of the student loan obligation of a borrower who—
(A) is employed full-time in an area of national need, as described in subsection (b); and
(B) is not in default on a loan for which the borrower seeks forgiveness.
To provide loan forgiveness under paragraph (1), the Secretary is authorized to carry out a program—
(A) through the holder of the loan, to assume the obligation to repay a qualified loan amount for a loan made, insured, or guaranteed under this part (other than an excepted PLUS loan or an excepted consolidation loan (as such terms are defined in section 1098e(a) of this title)); and
(B) to cancel a qualified loan amount for a loan made under part C of this subchapter (other than an excepted PLUS loan or an excepted consolidation loan).
The Secretary is authorized to issue such regulations as may be necessary to carry out this section.
For purposes of this section, an individual is employed in an area of national need if the individual meets the requirements of one of the following:
The individual is employed full-time as an early childhood educator.
The individual is employed full-time—
(A) as a nurse in a clinical setting; or
(B) as a member of the nursing faculty at an accredited school of nursing (as those terms are defined in section 296 of title 42).
The individual—
(A) has obtained a baccalaureate or advanced degree in a critical foreign language; and
(B) is employed full-time—
(i) in an elementary school or secondary school as a teacher of a critical foreign language;
(ii) in an agency of the United States Government in a position that regularly requires the use of such critical foreign language; or
(iii) in an institution of higher education as a faculty member or instructor teaching a critical foreign language.
The individual is employed full-time as a librarian in—
(A) a public library that serves a geographic area within which the public schools have a combined average of 30 percent or more of the schools’ total student enrollments composed of children meeting a measure of poverty under section 6313(a)(5) of this title; or
(B) a school that qualifies under section 1087ee(a)(2)(A) of this title for loan cancellation for Perkins loan recipients who teach in such a school.
The individual—
(A) is highly qualified, as such term is defined in section 7801 of this title; and
(B) is employed full-time—
(i) as a teacher educating students who are limited English proficient;
(ii) as a teacher 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 a school;
(iii) as a teacher and is an individual from an underrepresented population in the teaching profession, as determined by the Secretary; or
(iv) as a teacher in an educational service agency, as such term is defined in section 7801 of this title.
The individual—
(A) has obtained a degree in social work or a related field with a focus on serving children and families; and
(B) is employed full-time in public or private child welfare services.
The individual—
(A) is employed full-time as a speech-language pathologist or audiologist in an eligible preschool program or a school that qualifies under section 1087ee(a)(2)(A) of this title for loan cancellation for Perkins loan recipients who teach in such a school; and
(B) has, at a minimum, a graduate degree in speech-language pathology, audiology, or communication sciences and disorders.
The individual is employed full-time as a school counselor (as such term is defined in section 7245(e) of this title), 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 a school.
The individual is employed full-time in—
(A) public safety (including as a first responder, firefighter, police officer, or other law enforcement or public safety officer);
(B) emergency management (including as an emergency medical technician);
(C) public health (including full-time professionals engaged in health care practitioner occupations and health care support occupations, as such terms are defined by the Bureau of Labor Statistics); or
(D) public interest legal services (including prosecution, public defense, or legal advocacy in low-income communities at a nonprofit organization).
The individual—
(A) is a licensed, certified, or registered dietician who has completed a degree in a relevant field; and
(B) is employed full-time as a dietician with an agency of the special supplemental nutrition program for women, infants, and children under section 1786 of title 42.
The individual—
(A) has received a degree from a medical school at an institution of higher education; and
(B) has been accepted to, or currently participates in, a full-time graduate medical education training program or fellowship (or both) to provide health care services (as recognized by the Accreditation Council for Graduate Medical Education) that—
(i) requires more than five years of total graduate medical training; and
(ii) has fewer United States medical school graduate applicants than the total number of positions available in such program or fellowship.
The individual—
(A) has not less than a master's degree in social work, psychology, or psychiatry; and
(B) is employed full-time providing mental health services to children, adolescents, or veterans.
The individual—
(A)(i) has received a degree from an accredited dental school (as accredited by the Commission on Dental Accreditation);
(ii) has completed residency training in pediatric dentistry, general dentistry, or dental public health; and
(iii) is employed full-time as a dentist; or
(B) is employed full-time as a member of the faculty at a program or school accredited by the Commission on Dental Accreditation.
The individual is employed full-time in applied sciences, technology, engineering, or mathematics.
The individual—
(A) is a physical therapist; and
(B) is employed full-time providing physical therapy services to children, adolescents, or veterans.
The individual is employed full-time as a school superintendent, principal, or other administrator in a local educational agency, including in an educational service agency, in which 30 percent or more of the schools are schools that qualify under section 1087ee(a)(2)(A) of this title for loan cancellation for Perkins loan recipients who teach in such a school.
The individual is an occupational therapist and is employed full-time providing occupational therapy services to children, adolescents, or veterans.
The individual is employed full-time as an allied health professional—
(A) in a Federal, State, local, or tribal public health agency; or
(B) in a setting where patients might require health care services, including acute care facilities, ambulatory care facilities, personal residences and other settings located in health professional shortage areas, medically underserved areas, or medically underserved populations, as recognized by the Secretary of Health and Human Services.
Subject to paragraph (2), for each school, academic, or calendar year of full-time employment in an area of national need described in subsection (b) that a borrower completes on or after August 14, 2008, the Secretary shall forgive not more than $2,000 of the student loan obligation of the borrower that is outstanding after the completion of each such school, academic, or calendar year of employment, respectively.
The Secretary shall not forgive more than $10,000 in the aggregate for any borrower under this section, and no borrower shall receive loan forgiveness under this section for more than five years of service.
The Secretary shall grant loan forgiveness under this section on a first-come, first-served basis, and subject to the availability of appropriations.
Nothing in this section shall be construed to authorize the refunding of any repayment of a loan.
No borrower may, for the same service, receive a reduction of loan obligations under both this section and section 1078–10, 1078–12, 1087e(m), or 1087j of this title.
In this section:
The term “allied health professional” means an allied health professional as defined in section 295p(5) of title 42 who—
(A) has graduated and received an allied health professions degree or certificate from an institution of higher education; and
(B) is employed with a Federal, State, local or tribal public health agency, or in a setting where patients might require health care services, including acute care facilities, ambulatory care facilities, personal residences and other settings located in health professional shortage areas, medically underserved areas, or medically underserved populations, as recognized by the Secretary of Health and Human Services.
The term “audiologist” means an individual who—
(A) has received, at a minimum, a graduate degree in audiology from an institution of higher education accredited by an agency or association recognized by the Secretary pursuant to section 1099b(a) of this title; and
(B)(i) provides audiology services under subsection (ll)(2) of section 1395x of title 42; or
(ii) meets or exceeds the qualifications for a qualified audiologist under subsection (ll)(4) of such section.
The term “early childhood educator” means an individual who—
(A) works directly with children in an eligible preschool program or eligible early childhood education program in a low-income community;
(B) is involved directly in the care, development, and education of infants, toddlers, or young children age five and under; and
(C) has completed a baccalaureate or advanced degree in early childhood development or early childhood education, or in a field related to early childhood education.
The term “eligible preschool program” means a program that—
(A) provides for the care, development, and education of infants, toddlers, or young children age five and under;
(B) meets any applicable State or local government licensing, certification, approval, and registration requirements, and
(C) is operated by—
(i) a public or private school that is supported, sponsored, supervised, or administered by a local educational agency;
(ii) a Head Start agency serving as a grantee designated under the Head Start Act (42 U.S.C. 9831 et seq.);
(iii) a nonprofit or community based organization; or
(iv) a child care program, including a home.
The term “eligible early childhood education program” means—
(A) a family child care program, center-based child care program, State prekindergarten program, school program, or other out-of-home early childhood development care program, that—
(i) is licensed or regulated by the State; and
(ii) serves two or more unrelated children who are not old enough to attend kindergarten;
(B) a Head Start Program carried out under the Head Start Act (42 U.S.C. 9831 et seq.); or
(C) an Early Head Start Program carried out under section 645A of the Head Start Act (42 U.S.C. 9840a).
The term “low-income community” means a school attendance area (as defined in section 6313(a)(2)(A) of this title)—
(A) in which 70 percent of households earn less than 85 percent of the State median household income; or
(B) that includes a school that qualifies under section 1087ee(a)(2)(A) of this title for loan cancellation for Perkins loan recipients who teach in such a school.
The term “nurse” means a nurse who meets all of the following:
(A) The nurse graduated from—
(i) an accredited school of nursing (as those terms are defined in section 296 of title 42);
(ii) a nursing center; or
(iii) an academic health center that provides nurse training.
(B) The nurse holds a valid and unrestricted license to practice nursing in the State in which the nurse practices in a clinical setting.
(C) The nurse holds one or more of the following:
(i) A graduate degree in nursing, or an equivalent degree.
(ii) A nursing degree from a collegiate school of nursing (as defined in section 296 of title 42).
(iii) A nursing degree from an associate degree school of nursing (as defined in such section).
(iv) A nursing degree from a diploma school of nursing (as defined in such section).
The term “occupational therapist” means an individual who—
(A) has received, at a minimum, a baccalaureate degree in occupational therapy from an institution of higher education accredited by an agency or association recognized by the Secretary pursuant to section 1099b(a) of this title; and
(B)(i) provides occupational therapy services under section 1395x(g) of title 42; or
(ii) meets or exceeds the qualifications for a qualified occupational therapist, as determined by State law.
The term “physical therapist” means an individual who—
(A) has received, at a minimum, a graduate degree in physical therapy from an institution of higher education accredited by an agency or association recognized by the Secretary pursuant to section 1099b(a) of this title; and
(B)(i) provides physical therapy services under section 1395x(p) of title 42; or
(ii) meets or exceeds the qualifications for a qualified physical therapist, as determined by State law.
The term “speech-language pathologist” means a speech-language pathologist who—
(A) has received, at a minimum, a graduate degree in speech-language pathology or communication sciences and disorders from an institution of higher education accredited by an agency or association recognized by the Secretary pursuant to section 1099b(a) of this title; and
(B) provides speech-language pathology services under section 1395x(ll)(1) of title 42, or meets or exceeds the qualifications for a qualified speech-language pathologist under subsection (ll)(4) of such section.
There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years to provide loan forgiveness in accordance with this section.
(Pub. L. 89–329, title IV, §428K, as added Pub. L. 105–244, title IV, §425, Oct. 7, 1998, 112 Stat. 1699; amended Pub. L. 110–315, title IV, §430, Aug. 14, 2008, 122 Stat. 3236; Pub. L. 111–39, title IV, §402(f)(7), July 1, 2009, 123 Stat. 1944; Pub. L. 111–148, title V, §5205(b), Mar. 23, 2010, 124 Stat. 611.)
The Head Start Act, referred to in subsec. (g)(4)(C)(ii), (5)(B), is subchapter B (§635 et seq.) of chapter 8 of subtitle A of title VI of Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 499, which is classified generally to subchapter II (§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.
2010—Subsec. (b)(18). Pub. L. 111–148, §5205(b)(1), added par. (18).
Subsec. (g). Pub. L. 111–148, §5205(b)(2), added par. (1) and redesignated former pars. (1) to (9) as (2) to (10), respectively.
2009—Subsec. (g)(9)(B). Pub. L. 111–39 substituted “under subsection (ll)(4) of such section” for “under subsection (ll)(3) of such section”.
2008—Pub. L. 110–315 amended section generally. Prior to amendment, section related to loan forgiveness for child care providers.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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.
Pub. L. 111–148, title V, §5205(a), Mar. 23, 2010, 124 Stat. 611, provided that: “The purpose of this section [amending this section] is to assure an adequate supply of allied health professionals to eliminate critical allied health workforce shortages in Federal, State, local, and tribal public health agencies or in settings where patients might require health care services, including acute care facilities, ambulatory care facilities, personal residences and other settings, as recognized by the Secretary of Health and Human Services by authorizing an Allied Health Loan Forgiveness Program.”
[For definition of “Allied Health Loan Forgiveness Program” as used in section 5205(a) of Pub. L. 111–148, set out above, see section 5002(a) of Pub. L. 111–148, set out as a note under section 294q of Title 42, The Public Health and Welfare.]
The purpose of this section is to encourage qualified individuals to enter and continue employment as civil legal assistance attorneys.
In this section:
The term “civil legal assistance attorney” means an attorney who—
(A) is a full-time employee of—
(i) a nonprofit organization that provides legal assistance with respect to civil matters to low-income individuals without a fee; or
(ii) a protection and advocacy system or client assistance program that provides legal assistance with respect to civil matters and receives funding under—
(I) subtitle C of title I of the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15041 et seq.);
(II) section 732 or 794e of title 29;
(III) part A of title I of the Protection and Advocacy for Individuals with Mental Illness Act (42 U.S.C. 10801 et seq.);
(IV) section 3004 of title 29;
(V) section 1320b–21 of title 42;
(VI) section 300d–53 of title 42; or
(VII) section 15461 of title 42;
(B) as such employee, provides civil legal assistance as described in subparagraph (A) on a full-time basis; and
(C) is continually licensed to practice law.
Except as provided in subparagraph (B), the term “student loan” means—
(i) subject to clause (ii), a loan made, insured, or guaranteed under this part, part C, or part D; and
(ii) a loan made under section 1078–3 or 1087e(g) of this title, to the extent that such loan was used to repay—
(I) a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct PLUS Loan;
(II) a loan made under section 1078, 1078–2, or 1078–8 of this title; or
(III) a loan made under part D.
The term “student loan” does not include any of the following loans:
(i) A loan made to the parents of a dependent student under section 1078–2 of this title.
(ii) A Federal Direct PLUS Loan made to the parents of a dependent student.
(iii) A loan made under section 1078–3 or 1087e(g) of this title, to the extent that such loan was used to repay—
(I) a loan made to the parents of a dependent student under section 1078–2 of this title; or
(II) a Federal Direct PLUS Loan made to the parents of a dependent student.
From amounts appropriated under subsection (i) for a fiscal year, the Secretary shall carry out a program of assuming the obligation to repay a student loan, by direct payments on behalf of a borrower to the holder of such loan, in accordance with subsection (d), for any borrower who—
(1) is employed as a civil legal assistance attorney; and
(2) is not in default on a loan for which the borrower seeks repayment.
To be eligible to receive repayment benefits under subsection (c), a borrower shall enter into a written agreement with the Secretary that specifies that—
(A) the borrower will remain employed as a civil legal assistance attorney for a required period of service of not less than three years, unless involuntarily separated from that employment;
(B) if the borrower is involuntarily separated from employment on account of misconduct, or voluntarily separates from employment, before the end of the period specified in the agreement, the borrower will repay the Secretary the amount of any benefits received by such employee under this agreement;
(C) if the borrower is required to repay an amount to the Secretary under subparagraph (B) and fails to repay such amount, a sum equal to that amount shall be recoverable by the Federal Government from the employee by such methods as are provided by law for the recovery of amounts owed to the Federal Government;
(D) the Secretary may waive, in whole or in part, a right of recovery under this subsection if it is shown that recovery would be contrary to the public interest; and
(E) the Secretary shall make student loan payments under this section for the period of the agreement, subject to the availability of appropriations.
Any amount repaid by, or recovered from, an individual under this subsection shall be credited to the appropriation account from which the amount involved was originally paid.
Any amount credited under subparagraph (A) shall be merged with other sums in such account and shall be available for the same purposes and period, and subject to the same limitations, if any, as the sums with which the amount was merged.
Student loan repayments made by the Secretary under this section shall be made subject to such terms, limitations, or conditions as may be mutually agreed upon by the borrower and the Secretary in an agreement under paragraph (1), except that the amount paid by the Secretary under this section shall not exceed—
(i) $6,000 for any borrower in any calendar year; or
(ii) an aggregate total of $40,000 in the case of any borrower.
Nothing in this section shall authorize the Secretary to pay any amount to reimburse a borrower for any repayments made by such borrower prior to the date on which the Secretary entered into an agreement with the borrower under this subsection.
On completion of the required period of service under an agreement under subsection (d), the borrower and the Secretary may, subject to paragraph (2), enter into an additional agreement in accordance with subsection (d).
An agreement entered into under paragraph (1) may require the borrower to remain employed as a civil legal assistance attorney for less than three years.
Subject to paragraph (2), the Secretary shall provide repayment benefits under this section on a first-come, first-served basis, and subject to the availability of appropriations.
The Secretary shall give priority in providing repayment benefits under this section in any fiscal year to a borrower who—
(A) has practiced law for five years or less and, for not less than 90 percent of the time in such practice, has served as a civil legal assistance attorney;
(B) received repayment benefits under this section during the preceding fiscal year; and
(C) has completed less than three years of the first required period of service specified for the borrower in an agreement entered into under subsection (d).
No borrower may, for the same service, receive a reduction of loan obligations under both this section and section 1078–11 or 1087e(m) of this title.
The Secretary is authorized to issue such regulations as may be necessary to carry out this section.
There are authorized to be appropriated to carry out this section $10,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years.
(Pub. L. 89–329, title IV, §428L, as added Pub. L. 110–315, title IV, §431, Aug. 14, 2008, 122 Stat. 3242.)
The Developmental Disabilities Assistance and Bill of Rights Act of 2000, referred to in (b)(1)(A)(ii)(I), is Pub. L. 106–402, Oct. 30, 2000, 114 Stat. 1677. Subtitle C of title I of the Act is classified generally to part C (§15041 et seq.) of subchapter I of chapter 144 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 15001 of Title 42 and Tables.
The Protection and Advocacy for Individuals with Mental Illness Act, referred to in subsec. (b)(1)(A)(ii)(III), is Pub. L. 99–319, May 23, 1986, 100 Stat. 478. Part A of title I of the Act is classified generally to part A (§10801 et seq.) of subchapter I of chapter 114 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 10801 of Title 42 and Tables.
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.
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.
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.
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.
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.
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.
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.
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.
(Pub. L. 89–329, title IV, §429, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1395.)
A prior section 1079, Pub. L. 89–329, title IV, §429, Nov. 8, 1965, 79 Stat. 1243; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2123; Pub. L. 96–374, title XIII, §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.
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.
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.
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.
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.
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.
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.
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.
(Pub. L. 89–329, title IV, §430, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1397; amended Pub. L. 102–325, title IV, §423, July 23, 1992, 106 Stat. 543; Pub. L. 105–244, title IV, §426, Oct. 7, 1998, 112 Stat. 1702.)
A prior section 1080, Pub. L. 89–329, title IV, §430, Nov. 8, 1965, 79 Stat. 1244; Pub. L. 90–575, title I, §113(b)(5), Oct. 16, 1968, 82 Stat. 1021; Pub. L. 92–318, title I, §132B(c), June 23, 1972, 86 Stat. 262; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2125; Pub. L. 95–43, §1(a)(33), June 15, 1977, 91 Stat. 216; Pub. L. 96–374, title IV, §§416(a)(1), (b), 422, title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1420, 1421, 1432, 1503; Pub. L. 99–272, title XVI, §§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.
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).
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.
Pub. L. 102–325, title XIV, §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, §6(b)(2), Oct. 31, 1998, 112 Stat. 3128.
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 and each guaranty agency, eligible lender, and subsequent holder shall enter into an agreement with each consumer reporting agency to exchange information concerning student borrowers, in accordance with the requirements of this section. For the purpose of assisting such consumer reporting agencies 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) or by a guaranty agency, eligible lender, or subsequent holder (concerning loans covered by a guaranty agreement), or to requests from such consumer reporting agencies for responses to objections raised by borrowers. Subject to the requirements of subsection (c) of this section, such agreements shall require the Secretary or the guaranty agency, eligible lender, or subsequent holder, as appropriate, to disclose to such consumer reporting agencies, with respect to any loan under this part that has not been repaid by the borrower—
(1) that the loan is an education loan (as such term is defined in section 1019 of this title);
(2) the total amount of loans made to any borrower under this part and the remaining balance of the loans;
(3) information concerning the repayment status of the loan for inclusion in the file of the borrower, except that nothing in this subsection shall be construed to affect any otherwise applicable provision of the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.);
(4) 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
(5) 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.
Such agreements may also provide for the disclosure by such consumer reporting agencies to the Secretary or a guaranty agency, whichever insures or guarantees a loan, upon receipt of a notice under subsection (a)(4) 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.
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 consumer reporting agencies 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)(4) 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 consumer reporting agencies 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.
A guaranty agency, eligible lender, or subsequent holder or consumer reporting agency which discloses or receives information under this section shall not be considered a Government contractor within the meaning of section 552a of title 5.
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.
Notwithstanding paragraphs (4) and (5) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(4), (a)(5)), 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.
(Pub. L. 89–329, title IV, §430A, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1398; amended Pub. L. 100–50, §10(v), June 3, 1987, 101 Stat. 346; Pub. L. 102–325, title IV, §424, July 23, 1992, 106 Stat. 543; Pub. L. 103–208, §2(c)(52), Dec. 20, 1993, 107 Stat. 2467; Pub. L. 110–315, title IV, §432(a), Aug. 14, 2008, 122 Stat. 3245; Pub. L. 111–39, title IV, §402(f)(8), July 1, 2009, 123 Stat. 1944.)
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, §601, Oct. 26, 1970, 84 Stat. 1127, as amended, which is classified generally to subchapter III (§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.
A prior section 1080a, Pub. L. 89–329, title IV, §430A, as added Pub. L. 99–272, title XVI, §16023, Apr. 7, 1986, 100 Stat. 349; amended Pub. L. 99–320, §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.
2009—Subsec. (f). Pub. L. 111–39, in introductory provisions, substituted “and (5)” for “and (6)” and “(a)(5)” for “(a)(6)”.
2008—Pub. L. 110–315, §432(a)(1), substituted “consumer reporting agencies” for “credit bureaus” in section catchline.
Subsec. (a). Pub. L. 110–315, §432(a)(2)(B)–(D), added pars. (1) and (3) and redesignated former pars. (1), (2) and (3) as (2), (4) and (5), respectively.
Pub. L. 110–315, §432(a)(2)(A), in introductory provisions, substituted “the Secretary and” for “the Secretary,” and “an agreement with each consumer reporting agency” for “agreements with credit bureau organizations” in first sentence, “such consumer reporting agencies” for “such organizations” in two places and “insurance) or by” for “insurance), by” in second sentence, and “Secretary or” for “Secretary,” and “consumer reporting agencies” for “organizations” in third sentence.
Subsec. (b). Pub. L. 110–315, §432(a)(3), substituted “consumer reporting agencies” for “organizations” and “subsection (a)(4)” for “subsection (a)(2)”.
Subsec. (c)(2). Pub. L. 110–315, §432(a)(4)(A), substituted “consumer reporting agencies” for “organizations”.
Subsec. (c)(4). Pub. L. 110–315, §432(a)(4)(B)(i), substituted “subsection (a)(4)” for “subsection (a)(2)”.
Subsec. (c)(4)(A). Pub. L. 110–315, §432(a)(4)(B)(ii), substituted “consumer reporting agencies” for “credit bureau organizations”.
Subsec. (d). Pub. L. 110–315, §432(a)(5), substituted “consumer reporting agency” for “credit bureau organization”.
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.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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. 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.
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.
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.
(Pub. L. 89–329, title IV, §431, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1400; amended Pub. L. 100–50, §10(w), June 3, 1987, 101 Stat. 346.)
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, §4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.
A prior section 1081, Pub. L. 89–329, title IV, §431, Nov. 8, 1965, 79 Stat. 1245; Pub. L. 90–460, §3(c), Aug. 3, 1968, 82 Stat. 638; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2126; Pub. L. 96–374, title XIII, §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.
1987—Subsec. (a). Pub. L. 100–50 substituted “section 1072 of this title” for “section 1072(a)(4)(C) 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.
Pub. L. 105–244, title IV, §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.”
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.
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.
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. The Secretary may not enter into any settlement of any claim under this subchapter and part C of subchapter I of chapter 34 of title 42 that exceeds $1,000,000 unless—
(1) the Secretary requests a review of the proposed settlement of such claim by the Attorney General; and
(2) the Attorney General responds to such request, which may include, at the Attorney General's discretion, a written opinion related to such proposed settlement.
(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.
(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.
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.
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.
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.
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.
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 either of the authorizing committees, 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.
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.
For the purpose of this subsection, the term “record” includes any information, document, report, answer, account, paper, or other data or documentary evidence.
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.
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.
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.
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.
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.
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.
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.
(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.
(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.
(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.
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.
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.
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.
The Secretary shall provide the lender, if it so requests, an opportunity to show cause that the emergency action is unwarranted.
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.
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.
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.
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.
(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.
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 part C of subchapter I of chapter 34 of title 42; 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.
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.
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.
The forms prescribed by the Secretary shall—
(i) use clear, concise, and simple language to facilitate understanding of loan terms and conditions by applicants; and
(ii) be formatted to require the applicant to clearly indicate a choice of lender.
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.
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. Unless otherwise notified by the Secretary, each institution of higher education that participates in the program under this part or part C may use a master promissory note for loans under this part and part C.
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.
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.
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.
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.
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.
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.
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.
Nothing in this section shall be construed to limit the development and use of electronic forms and procedures.
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.
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.
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 authorizing committees.
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.
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.
(Pub. L. 89–329, title IV, §432, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1401; amended Pub. L. 100–50, §10(x), (y), June 3, 1987, 101 Stat. 346; Pub. L. 101–239, title II, §2006(a), Dec. 19, 1989, 103 Stat. 2118; Pub. L. 102–325, title IV, §425, July 23, 1992, 106 Stat. 543; Pub. L. 103–208, §2(k)(2), (3), Dec. 20, 1993, 107 Stat. 2485; Pub. L. 104–66, title I, §1042(e), Dec. 21, 1995, 109 Stat. 716; Pub. L. 105–244, title IV, §427, Oct. 7, 1998, 112 Stat. 1702; Pub. L. 106–554, §1(a)(1) [title III, §311], Dec. 21, 2000, 114 Stat. 2763, 2763A–46; Pub. L. 109–171, title VIII, §8014(j), Feb. 8, 2006, 120 Stat. 171; Pub. L. 110–315, title I, §103(b)(6), title IV, §433, Aug. 14, 2008, 122 Stat. 3089, 3247; Pub. L. 111–39, title IV, §402(f)(9), July 1, 2009, 123 Stat. 1944.)
Subparagraph (D) of paragraph (1) of subsec. (f), referred to in subsec. (f)(2), was repealed by Pub. L. 105–244, title IV, §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.
A prior section 1082, Pub. L. 89–329, title IV, §432, Nov. 8, 1965, 79 Stat. 1246; Pub. L. 90–460, §3(d), Aug. 3, 1968, 82 Stat. 638; Pub. L. 93–604, title VII, §705(a), Jan. 2, 1975, 88 Stat. 1964; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2127; Pub. L. 96–88, title III, §301(b)(2), Oct. 17, 1979, 93 Stat. 678; Pub. L. 96–374, title IV, §416(c), title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1421, 1503; Pub. L. 99–272, title XVI, §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.
2009—Subsec. (b). Pub. L. 111–39, §402(f)(9)(A), made technical amendment to reference in original act which appears in text as reference to section 1078 of this title.
Subsec. (m)(1)(B). Pub. L. 111–39, §402(f)(9)(B), in cl. (i), inserted “and” at end and, in cl. (ii), substituted period for “; and”.
2008—Subsec. (b). Pub. L. 110–315, §433(a), inserted at end “The Secretary may not enter into any settlement of any claim under this subchapter and part C of subchapter I of chapter 34 of title 42 that exceeds $1,000,000 unless—” and pars. (1) and (2).
Subsec. (f)(1)(C). Pub. L. 110–315, §103(b)(6)(A), substituted “either of the authorizing committees” for “the Committee on Education and the Workforce of the House of Representatives or the Committee on Labor and Human Resources of the Senate”.
Subsec. (m)(1)(D)(i). Pub. L. 110–315, §433(b), inserted at end “Unless otherwise notified by the Secretary, each institution of higher education that participates in the program under this part or part C may use a master promissory note for loans under this part and part C.”
Subsec. (n)(3). Pub. L. 110–315, §103(b)(6)(B), substituted “authorizing committees” for “Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate” in concluding provisions.
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, §1(a)(1) [title III, §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, §1(a)(1) [title III, §311(2)], added subpar. (E).
1998—Subsec. (f)(1)(B). Pub. L. 105–244, §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, §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, §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, §427(b), substituted “The Secretary” for “Within 1 year after July 23, 1992, the Secretary”.
Subsec. (m)(1)(A). Pub. L. 105–244, §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, §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, §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, §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, §427(c)(2), added par. (4).
Subsec. (n)(1). Pub. L. 105–244, §427(d)(1), substituted “1999” for “1993”.
Subsec. (n)(3). Pub. L. 105–244, §427(d)(2), substituted “and the Workforce” for “and Labor” in concluding provisions.
Subsec. (p). Pub. L. 105–244, §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, §425(d)(1). See 1992 Amendment notes below.
1992—Subsec. (a)(1). Pub. L. 102–325, §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, §425(b)(1), (2), struck out “on the record” after “for a hearing”.
Subsec. (g)(2). Pub. L. 102–325, §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, §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, §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, §425(d)(1), as amended by Pub. L. 103–208, §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, §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, §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, §425(d)(4), as amended by Pub. L. 103–208, §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, §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, §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, §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, §10(x), added par. (4).
Subsec. (g)(2)(A)(i), (B). Pub. L. 100–50, §10(y), substituted “misrepresentation” for “representation”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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. 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. 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. 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.
1 See References in Text note below.
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 Federal default fee, and whether those fees will be—
(A) collected by the lender at or prior to the disbursal of the loan;
(B) deducted from the proceeds of the loan;
(C) paid separately by the borrower; or
(D) paid by the lender;
(5) the stated interest rate on the loan;
(6) for loans made under section 1078–8 of this title or to a student borrower under section 1078–2 of this title, an explanation—
(A) that the borrower has the option to pay the interest that accrues on the loan while the borrower is a student at an institution of higher education; and
(B) if the borrower does not pay such interest while attending an institution, when and how often interest on the loan will be capitalized;
(7) for loans made to a parent borrower on behalf of a student under section 1078–2 of this title, an explanation—
(A) that the parent has the option to defer payment on the loan while the student is enrolled on at least a half-time basis in an institution of higher education;
(B) if the parent does not pay the interest on the loan while the student is enrolled in an institution, when and how often interest on the loan will be capitalized; and
(C) that the parent may be eligible for a deferment on the loan if the parent is enrolled on at least a half-time basis in an institution of higher education;
(8) the yearly and cumulative maximum amounts that may be borrowed;
(9) a statement of the total cumulative balance, including the loan being disbursed, owed by the borrower to that lender, and an estimate of the projected monthly payment, given such cumulative balance;
(10) 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;
(11) a description of the types of repayment plans that are available for the loan;
(12) a statement as to the minimum and maximum repayment terms which the lender may impose, and the minimum annual payment required by law;
(13) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan;
(14) a statement that the borrower has the right to prepay all or part of the loan, at any time, without penalty;
(15) a statement summarizing circumstances in which repayment of the loan or interest that accrues on the loan may be deferred;
(16) a statement summarizing the circumstances in which a borrower may obtain forbearance on the loan;
(17) a description of the options available for forgiveness of the loan, and the requirements to obtain loan forgiveness;
(18) 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 consumer reporting agency; and
(19) an explanation of any cost the borrower may incur during repayment or in the collection of the loan, including fees that the borrower may be charged, such as late payment fees and collection costs.
Each eligible lender shall, at or prior to the start of the repayment period on a loan made, insured, or guaranteed under section 1078, 1078–2, or 1078–8 of this title, 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. The disclosure required by this subsection shall be made not less than 30 days nor more than 150 days before the first payment on the loan is due from the borrower. The disclosure shall include—
(1) the name of the eligible lender or loan servicer, and the address to which communications and payments should be sent;
(2) the scheduled date upon which the repayment period is to begin or the deferment period under section 1078–2(d)(1) of this title is to end, as applicable;
(3) the estimated balance owed by the borrower on the loan or loans covered by the disclosure (including, if applicable, the estimated amount of interest to be capitalized) as of the scheduled date on which the repayment period is to begin or the deferment period under 1078–2(d)(1) of this title is to end, as applicable;
(4) the stated interest rate on the loan or loans, or the combined interest rate of loans with different stated interest rates;
(5) information on loan repayment benefits offered for the loan or loans, including—
(A) whether the lender offers any benefits that are contingent on the repayment behavior of the borrower, such as—
(i) a reduction in interest rate if the borrower repays the loan by automatic payroll or checking account deduction;
(ii) a reduction in interest rate if the borrower makes a specified number of on-time payments; and
(iii) other loan repayment benefits for which the borrower could be eligible that would reduce the amount of repayment or the length of the repayment period;
(B) if the lender provides a loan repayment benefit—
(i) any limitations on such benefit;
(ii) explicit information on the reasons a borrower may lose eligibility for such benefit;
(iii) for a loan repayment benefit that reduces the borrower's interest rate—
(I) examples of the impact the interest rate reduction would have on the length of the borrower's repayment period and the amount of repayment; and
(II) upon the request of the borrower, the effect the reduction in interest rate would have with respect to the borrower's payoff amount and time for repayment; and
(iv) whether and how the borrower can regain eligibility for a benefit if a borrower loses a benefit;
(6) a description of all the repayment plans that are available to the borrower and a statement that the borrower may change from one plan to another during the period of repayment;
(7) the repayment schedule for all loans covered by the disclosure, including—
(A) the date the first installment is due; and
(B) the number, amount, and frequency of required payments, which shall be based on a standard repayment plan or, in the case of a borrower who has selected another repayment plan, on the repayment plan selected by the borrower;
(8) 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;
(9) except as provided in subsection (d)—
(A) 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
(B) if the borrower has already paid interest on the loan or loans, the amount of interest paid;
(10) the nature of any fees which may accrue or be charged to the borrower during the repayment period;
(11) 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;
(12) a description of the options by which the borrower may avoid or be removed from default, including any relevant fees associated with such options; and
(13) additional resources, including nonprofit organizations, advocates, and counselors (including the Student Loan Ombudsman of the Department) of which the lender is aware, where borrowers may receive advice and assistance on loan repayment.
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 notification which summarizes, in simple and understandable terms, 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 consumer reporting agency. The requirement of this subsection shall be in addition to the information required by subsection (a) of this section.
Loans made under sections 1078–2 and 1078–8 of this title shall not be subject to the disclosure of projected monthly payment amounts required under subsection (b)(7) 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, or the student on whose behalf the loan is made, is in school, in simple and understandable terms. Such sample projections shall disclose the cost to the borrower of—
(1) capitalizing the interest; and
(2) paying the interest as the interest accrues.
Each eligible lender shall provide the borrower of a loan made, insured, or guaranteed under this part with a bill or statement (as applicable) that corresponds to each payment installment time period in which a payment is due and that includes, in simple and understandable terms—
(A) the original principal amount of the borrower's loan;
(B) the borrower's current balance, as of the time of the bill or statement, as applicable;
(C) the interest rate on such loan;
(D) the total amount the borrower has paid in interest on the loan;
(E) the aggregate amount the borrower has paid for the loan, including the amount the borrower has paid in interest, the amount the borrower has paid in fees, and the amount the borrower has paid against the balance;
(F) a description of each fee the borrower has been charged for the most recently preceding installment time period;
(G) the date by which the borrower needs to make a payment in order to avoid additional fees and the amount of such payment and the amount of such fees;
(H) the lender's or loan servicer's address and toll-free phone number for payment and billing error purposes; and
(I) a reminder that the borrower has the option to change repayment plans, a list of the names of the repayment plans available to the borrower, a link to the appropriate page of the Department's website to obtain a more detailed description of the repayment plans, and directions for the borrower to request a change in repayment plan.
Each eligible lender shall provide to a borrower who has notified the lender that the borrower is having difficulty making payments on a loan made, insured, or guaranteed under this part with the following information in simple and understandable terms:
(A) A description of the repayment plans available to the borrower, including how the borrower should request a change in repayment plan.
(B) A description of the requirements for obtaining forbearance on a loan, including expected costs associated with forbearance.
(C) A description of the options available to the borrower to avoid defaulting on the loan, and any relevant fees or costs associated with such options.
Each eligible lender shall provide to a borrower who is 60 days delinquent in making payments on a loan made, insured, or guaranteed under this part with a notice, in simple and understandable terms, of the following:
(A) The date on which the loan will default if no payment is made.
(B) The minimum payment the borrower must make to avoid default.
(C) A description of the options available to the borrower to avoid default, and any relevant fees or costs associated with such options, including a description of deferment and forbearance and the requirements to obtain each.
(D) Discharge options to which the borrower may be entitled.
(E) Additional resources, including nonprofit organizations, advocates, and counselors (including the Student Loan Ombudsman of the Department), of which the lender is aware, where the borrower can receive advice and assistance on loan repayment.
The information required under this section shall be available without cost to the borrower.
The failure of an eligible lender to provide information as required by this section shall not—
(A) relieve a borrower of the obligation to repay a loan in accordance with the loan's terms; or
(B) provide a basis for a claim for civil damages.
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.
(Pub. L. 89–329, title IV, §433, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1406; amended Pub. L. 100–50, §10(z), June 3, 1987, 101 Stat. 346; Pub. L. 102–325, title IV, §426, July 23, 1992, 106 Stat. 548; Pub. L. 103–208, §2(c)(53), (54), (k)(4), Dec. 20, 1993, 107 Stat. 2468, 2485; Pub. L. 105–244, title IV, §428, Oct. 7, 1998, 112 Stat. 1704; Pub. L. 110–315, title IV, §434(a), Aug. 14, 2008, 122 Stat. 3247.)
The Truth in Lending Act, referred to in subsec. (f)(3), is title I of Pub. L. 90–321, May 29, 1968, 82 Stat. 146, which is classified generally to subchapter I (§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.
A prior section 1083, Pub. L. 89–329, title IV, §433, Nov. 8, 1965, 79 Stat. 1247; Pub. L. 90–575, title I, §116(d), Oct. 16, 1968, 82 Stat. 1024; Pub. L. 92–318, title I, §132(c), June 23, 1972, 86 Stat. 261; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2129; Pub. L. 95–43, §1(a)(34), June 15, 1977, 91 Stat. 216; Pub. L. 96–374, title XIII, §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.
2008—Pub. L. 110–315 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (e) relating to student loan information by eligible lenders.
1998—Subsec. (a). Pub. L. 105–244, §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, §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, §2(c)(53), substituted “30 days” for “60 days” in introductory provisions.
Subsec. (e). Pub. L. 103–208, §2(k)(4), amended directory language of Pub. L. 102–325, §426(c). See 1992 Amendment note below.
Pub. L. 103–208, §2(c)(54), substituted “sections” for “section” before “1078–1”.
1992—Subsec. (a). Pub. L. 102–325, §426(a), added par. (1) and redesignated former pars. (1) to (13) as (2) to (14), respectively.
Subsec. (b). Pub. L. 102–325, §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, §426(b)(2), inserted “except as provided in subsection (e) of this section,” before “the projected”.
Subsec. (e). Pub. L. 102–325, §426(c), as amended by Pub. L. 103–208, §2(k)(4), added subsec. (e).
1987—Subsec. (a). Pub. L. 100–50, §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, §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, §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, §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”.
Pub. L. 110–315, title IV, §434(b), Aug. 14, 2008, 122 Stat. 3252, provided that:
“(1)
“(2)
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 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.
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.
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.
Each guaranty agency participating in a program under this part, working with the institutions of higher education served by such guaranty agency, shall develop and make available high-quality educational programs and materials to provide training for students and families in budgeting and financial management, including debt management and other aspects of financial literacy, such as the cost of using high interest loans to pay for postsecondary education, particularly as budgeting and financial management relates to student loan programs authorized by this subchapter and part C of subchapter I of chapter 34 of title 42. Such programs and materials shall be in formats that are simple and understandable to students and families, and shall be provided before, during, and after the students’ enrollment in an institution of higher education. The activities described in this section shall be considered default reduction activities for the purposes of section 1072 of this title.
Nothing in this section shall be construed to prohibit—
(1) a guaranty agency from using existing activities, programs, and materials in meeting the requirements of this section;
(2) a guaranty agency from providing programs or materials similar to the programs or materials described in subsection (a) to an institution of higher education that provides loans exclusively through part C; or
(3) a lender or loan servicer from providing outreach or financial aid literacy information in accordance with subsection (a).
(Pub. L. 89–329, title IV, §433A, as added Pub. L. 110–315, title IV, §435, Aug. 14, 2008, 122 Stat. 3252.)
A prior section 1083a, Pub. L. 89–329, title IV, §433A, as added Pub. L. 96–374, title IV, §418, Oct. 3, 1980, 94 Stat. 1423; amended Pub. L. 97–301, §13(a), Oct. 13, 1982, 96 Stat. 1404; Pub. L. 98–79, §3(a), Aug. 15, 1983, 97 Stat. 476; Pub. L. 99–272, title XVI, §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.
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.
(Pub. L. 89–329, title IV, §434, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1408.)
A prior section 1084, Pub. L. 89–329, title IV, §434, Nov. 8, 1965, 79 Stat. 1247; Pub. L. 90–575, title I, §116(b)(4), Oct. 16, 1968, 82 Stat. 1024; Pub. L. 91–206, §6, Mar. 10, 1970, 84 Stat. 51; Pub. L. 92–318, title I, §132D(e), June 23, 1972, 86 Stat. 264; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2129; Pub. L. 95–630, title V, §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.
As used in this part:
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.
(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 (5); 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;
(iii) 25 percent for fiscal year 1994 through fiscal year 2011; and
(iv) 30 percent for fiscal year 2012 and 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 college or university, as defined in section 1801(a)(4) 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.
An institution whose cohort default rate, calculated in accordance with subsection (m), is equal to or greater than the threshold percentage specified in paragraph (2)(B)(iv) for any two consecutive fiscal years may, not later than 30 days after the date the institution receives notification from the Secretary, file an appeal demonstrating exceptional mitigating circumstances, as defined in paragraph (5). The Secretary shall issue a decision on any such appeal not later than 45 days after the date of submission of the appeal. If the Secretary determines that the institution demonstrates exceptional mitigating circumstances, the Secretary may not subject the institution to provisional certification based solely on the institution's cohort default rate.
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.
(A) For purposes of this subsection, an institution of higher education shall be treated as having exceptional mitigating circumstances that make application of paragraph (2) inequitable, and that provide for regulatory relief under paragraph (3), 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 Federal Pell Grant amount, determined under section 1070a(b)(2)(A) of this title, 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.
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.
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.
An institution whose cohort default rate is equal to or greater than the threshold percentage specified in paragraph (2)(B)(iv) in any fiscal year shall establish a default prevention task force to prepare a plan to—
(I) identify the factors causing the institution's cohort default rate to exceed such threshold;
(II) establish measurable objectives and the steps to be taken to improve the institution's cohort default rate; and
(III) specify actions that the institution can take to improve student loan repayment, including appropriate counseling regarding loan repayment options.
Each institution subject to this subparagraph shall submit the plan under clause (i) to the Secretary, who shall review the plan and offer technical assistance to the institution to promote improved student loan repayment.
An institution whose cohort default rate is equal to or greater than the threshold percentage specified in paragraph (2)(B)(iv) for two consecutive fiscal years, shall require the institution's default prevention task force established under subparagraph (A) to review and revise the plan required under such subparagraph, and shall submit such revised plan to the Secretary.
The Secretary shall review each revised plan submitted in accordance with this subparagraph, and may direct that such plan be amended to include actions, with measurable objectives, that the Secretary determines, based on available data and analyses of student loan defaults, will promote student loan repayment.
An institution that demonstrates to the Secretary that the institution's participation rate index is equal to or less than 0.0625 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.
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.
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).
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, (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(a) 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, or (IV) it is a National or State chartered bank, or a credit union, with assets of less than $1,000,000,000;
(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 1078–2(d) and 1078–3 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) 1 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.
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.
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.
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.
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).
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.
The term “eligible lender” does not include any lender that the Secretary determines, after notice and opportunity for a hearing, has—
(A) offered, directly or indirectly, points, premiums, payments (including payments for referrals and for processing or finder fees), prizes, stock or other securities, travel, entertainment expenses, tuition payment or reimbursement, the provision of information technology equipment at below-market value, additional financial aid funds, or other inducements, to any institution of higher education, any employee of an institution of higher education, or any individual or entity in order to secure applicants for loans under this part;
(B) conducted unsolicited mailings, by postal or electronic means, of student loan application forms to students enrolled in secondary schools or postsecondary institutions, or to family members of such students, except that applications may be mailed, by postal or electronic means, to students or borrowers who have previously received loans under this part from such lender;
(C) entered into any type of consulting arrangement, or other contract to provide services to a lender, with an employee who is employed in the financial aid office of an institution of higher education, or who otherwise has responsibilities with respect to student loans or other financial aid of the institution;
(D) compensated an employee who is employed in the financial aid office of an institution of higher education, or who otherwise has responsibilities with respect to student loans or other financial aid of the institution, and who is serving on an advisory board, commission, or group established by a lender or group of lenders for providing such service, except that the eligible lender may reimburse such employee for reasonable expenses incurred in providing such service;
(E) performed for an institution of higher education any function that such institution of higher education is required to perform under this title, except that a lender shall be permitted to perform functions on behalf of such institution in accordance with section 1092(b) or 1092(l) of this title;
(F) paid, on behalf of an institution of higher education, another person to perform any function that such institution of higher education is required to perform under this subchapter and part C of subchapter I of chapter 34 of title 42, except that a lender shall be permitted to perform functions on behalf of such institution in accordance with section 1092(b) or 1092(l) of this title;
(G) provided payments or other benefits to a student at an institution of higher education to act as the lender's representative to secure applications under this subchapter and part C of subchapter I of chapter 34 of title 42 from individual prospective borrowers, unless such student—
(i) is also employed by the lender for other purposes; and
(ii) made all appropriate disclosures regarding such employment;
(H) 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
(I) engaged in fraudulent or misleading advertising.
It shall not be a violation of this paragraph for a lender to provide technical assistance to institutions of higher education comparable to the kinds of technical assistance provided to institutions of higher education by the Department.
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.
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).
Each institution serving as an eligible lender under paragraph (1)(E), and each eligible lender serving as a trustee for an institution of higher education or an organization affiliated with an institution of higher education, shall annually complete and submit to the Secretary a compliance audit to determine whether—
(A) the institution or lender is using all proceeds from special allowance payments and interest payments from borrowers, interest subsidies received from the Department, and any proceeds from the sale or other disposition of loans, for need-based grant programs, in accordance with paragraph (2)(A)(viii);
(B) the institution or lender is using not more than a reasonable portion of the proceeds described in paragraph (2)(A)(viii) for direct administrative expenses; and
(C) the institution or lender is ensuring that the proceeds described in paragraph (2)(A)(viii) are being used to supplement, and not to supplant, Federal and non-Federal funds that would otherwise be used for need-based grant programs.
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.
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.
The term “holder” means an eligible lender who owns a loan.
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.
The term “insurance beneficiary” means the insured or its authorized representative assigned in accordance with section 1079(d) of this title.
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.
(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, 1078–1,1 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 second fiscal year following the fiscal year in which the students entered repayment. 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 second 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 second fiscal year following the year in which they entered repayment.
(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 the second fiscal year following the year in which the loan entered repayment is not considered as in default for 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 second 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 1 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 1 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 1 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 1 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.
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.
(A) The Secretary shall publish not less often than once every fiscal year a report showing cohort default data and life of cohort default rates for each category of institution, including: (i) four-year public institutions; (ii) four-year private nonprofit institutions; (iii) two-year public institutions; (iv) two-year private nonprofit institutions; (v) four-year proprietary institutions; (vi) two-year proprietary institutions; and (vii) less than two-year proprietary institutions. For purposes of this subparagraph, for any fiscal year in which one or more current and former students at an institution enter repayment on loans under section 1078, 1078–2, or 1078–8 of this title, received for attendance at the institution, the Secretary shall publish 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 the institution in that fiscal year who default before the end of each succeeding fiscal year.
(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.
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 150 percent of the poverty line applicable to the borrower's family size as determined in accordance with section 9902(2) of title 42; or
(B) such borrower meets such other criteria as are established by the Secretary by regulation in accordance with paragraph (2).
In establishing criteria for purposes of paragraph (1)(B), the Secretary shall consider the borrower's income and debt-to-income ratio as primary factors.
Subject to the limitations in paragraph (2) and the prohibition in paragraph (3), the term “eligible not-for-profit holder” means an eligible lender under subsection (d) (except for an eligible lender described in subsection (d)(1)(E)) that requests a special allowance payment under section 1087–1(b)(2)(I)(vi)(II) of this title or a payment under section 1141 of this title and that is—
(A) a State, or a political subdivision, authority, agency, or other instrumentality thereof, including such entities that are eligible to issue bonds described in section 1.103–1 of title 26, Code of Federal Regulations, or section 144(b) of title 26;
(B) an entity described in section 150(d)(2) of such title that has not made the election described in section 150(d)(3) of such title;
(C) an entity described in section 501(c)(3) of such title; or
(D) acting as a trustee on behalf of a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d).
An eligible lender shall not be an eligible not-for-profit holder under this chapter and part C of subchapter I of chapter 34 of title 42 unless such lender—
(I) was a State, political subdivision, authority, agency, instrumentality, or other entity described in paragraph (1)(A), (B), or (C) that was, on September 27, 2007, acting as an eligible lender under subsection (d) (other than an eligible lender described in subsection (d)(1)(E)); or
(II) is acting as a trustee on behalf of a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d), and such State, political subdivision, authority, agency, instrumentality, or other entity, on September 27, 2007, was the sole beneficial owner of a loan eligible for any special allowance payment under section 1087–1 of this title.
Notwithstanding clause (i), a State may elect, in accordance with regulations of the Secretary, to waive the requirements of this subparagraph for a new not-for-profit holder determined by the State to be necessary to carry out a public purpose of such State, except that a State may not make such election with respect the 2 requirements of clause (i)(II).
No State, political subdivision, authority, agency, instrumentality, or other entity described in paragraph (1)(A), (B), or (C) shall be an eligible not-for-profit holder under this chapter and part C of subchapter I of chapter 34 of title 42 if such State, political subdivision, authority, agency, instrumentality, or other entity is owned or controlled, in whole or in part, by a for-profit entity.
A trustee described in paragraph (1)(D) shall not be an eligible not-for-profit holder under this chapter and part C of subchapter I of chapter 34 of title 42 with respect to a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d), if such State, political subdivision, authority, agency, instrumentality, or other entity is owned or controlled, in whole or in part, by a for-profit entity.
No State, political subdivision, authority, agency, instrumentality, trustee, or other entity described in paragraph (1)(A), (B), (C), or (D) shall be an eligible not-for-profit holder under this chapter and part C of subchapter I of chapter 34 of title 42 with respect to any loan, or income from any loan, unless—
(i) such State, political subdivision, authority, agency, instrumentality, or other entity is the sole beneficial owner of such loan and the income from such loan; or
(ii) such trustee holds the loan on behalf of a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d), and such State, political subdivision, authority, agency, instrumentality, or other entity is the sole beneficial owner of such loan and the income from such loan.
A trustee described in paragraph (1)(D) shall not receive compensation as consideration for acting as an eligible lender on behalf of a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d), in excess of reasonable and customary fees.
For purposes of subparagraphs (A), (B), (C), and (D) of this paragraph, a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d), shall not—
(i) be deemed to be owned or controlled, in whole or in part, by a for-profit entity; or
(ii) lose its status as the sole owner of a beneficial interest in a loan and the income from a loan,
by such State, political subdivision, authority, agency, instrumentality, or other entity, or by the trustee described in paragraph (1)(D), granting a security interest in, or otherwise pledging as collateral, such loan, or the income from such loan, to secure a debt obligation for which such State, political subdivision, authority, agency, instrumentality, or other entity is the issuer of the debt obligation.
In the case of a loan for which the special allowance payment is calculated under section 1087–1(b)(2)(I)(vi)(II) of this title and that is sold by the eligible not-for-profit holder holding the loan to an entity that is not an eligible not-for-profit holder under this chapter and part C of subchapter I of chapter 34 of title 42, the special allowance payment for such loan shall, beginning on the date of the sale, no longer be calculated under section 1087–1(b)(2)(I)(vi)(II) of this title and shall be calculated under section 1087–1(b)(2)(I)(vi)(I) of this title instead.
Not later than 1 year after September 27, 2007, the Secretary shall promulgate regulations in accordance with the provisions of this subsection.
(Pub. L. 89–329, title IV, §435, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1408; amended Pub. L. 100–50, §10(aa), June 3, 1987, 101 Stat. 347; Pub. L. 101–239, title II, §§2003(a)(2), 2007(a), Dec. 19, 1989, 103 Stat. 2113, 2120; Pub. L. 101–508, title III, §3004(a), Nov. 5, 1990, 104 Stat. 1388–26; Pub. L. 101–542, title III, §301, Nov. 8, 1990, 104 Stat. 2387; Pub. L. 102–26, §2(a)(1), Apr. 9, 1991, 105 Stat. 123; Pub. L. 102–325, title IV, §§416(e)(2), 427(a), (b)(1), (c)–(g), July 23, 1992, 106 Stat. 519, 549, 550; Pub. L. 103–66, title IV, §§4046(b)(1), 4106(b), Aug. 10, 1993, 107 Stat. 362, 368; Pub. L. 103–208, §2(c)(55)–(62), Dec. 20, 1993, 107 Stat. 2468, 2469; Pub. L. 103–235, §1, Apr. 28, 1994, 108 Stat. 381; Pub. L. 103–382, title III, §357, Oct. 20, 1994, 108 Stat. 3967; Pub. L. 104–208, div. A, title I, §101(e) [title VI, §602(b)(1)(A)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–283; Pub. L. 105–244, title I, §102(b)(2), title IV, §429(a)–(c)(1), (d), title IX, §901(d), Oct. 7, 1998, 112 Stat. 1622, 1704–1709, 1828; Pub. L. 106–554, §1(a)(1) [title III, §§308(a), 312], Dec. 21, 2000, 114 Stat. 2763, 2763A–45, 2763A–46; Pub. L. 109–171, title VIII, §8011, Feb. 8, 2006, 120 Stat. 165; Pub. L. 109–292, §3(a), Sept. 30, 2006, 120 Stat. 1340; Pub. L. 110–84, title III, §304, Sept. 27, 2007, 121 Stat. 797; Pub. L. 110–109, §4, Oct. 31, 2007, 121 Stat. 1028; Pub. L. 110–315, title IV, §§436(a)(1), (b)–(e)(1), 438(a)(3), Aug. 14, 2008, 122 Stat. 3253–3256, 3258; Pub. L. 111–39, title IV, §402(b)(2), (f)(10), July 1, 2009, 123 Stat. 1940, 1944; Pub. L. 111–152, title II, §2101(b)(3), Mar. 30, 2010, 124 Stat. 1073.)
The Navajo Community College Act, referred to in subsec. (a)(2)(C)(iii), is Pub. L. 92–189, Dec. 15, 1971, 85 Stat. 646, 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, which is classified principally to chapter 18 (§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)(4)(B) and (m)(1)(A), (2)(D), was repealed by Pub. L. 103–66, title IV, §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, §418, Oct. 7, 1998, 112 Stat. 1691.
Section 1078(h) of this title, referred to in subsec. (d)(1)(H), was repealed by Pub. L. 110–315, title IV, §438(a)(2)(B), Aug. 14, 2008, 122 Stat. 3258.
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 (§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.
A prior section 1085, Pub. L. 89–329, title IV, §435, Nov. 8, 1965, 79 Stat. 1247; Pub. L. 89–698, title II, §204, Oct. 29, 1966, 80 Stat. 1072; Pub. L. 90–575, title I, §§116(a), 118(a), Oct. 16, 1968, 82 Stat. 1023, 1026; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2130; Pub. L. 95–43, §1(a)(35), (36), June 15, 1977, 91 Stat. 216; Pub. L. 96–374, title IV, §§413(e), 421(e)(2), title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1418, 1432, 1503; Pub. L. 99–272, title XVI, §§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.
2010—Subsec. (a)(5)(A)(i)(I). Pub. L. 111–152 substituted “one-half the Federal Pell Grant amount, determined under section 1070a(b)(2)(A) of this title, for which a student would be eligible” for “one-half the maximum Federal Pell Grant award for which a student would be eligible”.
2009—Subsec. (a)(2)(C)(ii). Pub. L. 111–39, §402(f)(10)(A), substituted “a tribally controlled college or university, as defined in section 1801(a)(4) of title 25” for “a tribally controlled community college within the meaning of section 1801(a)(4) of title 25”.
Subsec. (d)(1). Pub. L. 111–39, §402(f)(10)(B)(i), substituted “section 501(a) of such title” for “section 501(1) of such title” in subpar. (A)(ii)(III) and “sections 1078–2(d) and 1078–3 of this title,” for “sections 1078–1(d), 1078–2(d), and 1078–3 of this title,” in subpar (G).
Subsec. (d)(2)(A)(vi), (3). Pub. L. 111–39, §402(f)(10)(B)(ii), (iii), made technical amendment to reference in original act which appears in text as reference to subsec. (m).
Subsec. (d)(5)(A). Pub. L. 111–39, §402(f)(10)(B)(iv), substituted “to any institution of higher education, any employee of an institution of higher education, or any individual or entity in order to secure applicants for loans under this part” for “to any institution of higher education or any employee of an institution of higher education in order to secure applicants for loans under this part”.
Subsec. (d)(5)(E), (F). Pub. L. 111–39, §402(b)(2), inserted “or 1092(l)” after “section 1092(b)”.
Subsec. (o)(1)(A)(ii). Pub. L. 111–39, §402(f)(10)(C), made technical amendment to reference in original act which appears in text as reference to section 9902(2) of title 42.
Subsec. (p)(1). Pub. L. 111–39, §402(f)(10)(D), made technical amendment to reference in original act which appears in text as reference to section 1141 of this title.
2008—Subsec. (a)(2)(A)(ii). Pub. L. 110–315, §436(a)(1)(A)(i), substituted “paragraph (5)” for “paragraph (4)”.
Subsec. (a)(2)(B)(iii), (iv). Pub. L. 110–315, §436(a)(1)(A)(ii), added cls. (iii) and (iv) and struck out former cl. (iii) which read as follows: “25 percent for any succeeding fiscal year.”
Subsec. (a)(3) to (8). Pub. L. 110–315, §436(a)(1)(B)–(E), added pars. (3) and (7), redesignated former pars. (3), (4), (5), and (6), as (4), (5), (6), and (8), respectively, and, in introductory provisions of par. (5)(A), substituted “For purposes of this subsection, an institution of higher education shall be treated as having exceptional mitigating circumstances that make application of paragraph (2) inequitable, and that provide for regulatory relief under paragraph (3), if such institution, in the opinion of an independent auditor, meets the following criteria:” for “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:”.
Subsec. (a)(8)(A). Pub. L. 110–315, §436(a)(1)(F), substituted “0.0625” for “0.0375”.
Subsec. (d)(1)(A)(ii). Pub. L. 110–315, §436(b), substituted “part, (III)” for “part, or (III)” and inserted “, or (IV) it is a National or State chartered bank, or a credit union, with assets of less than $1,000,000,000” before semicolon at end.
Subsec. (d)(1)(G). Pub. L. 110–315, §438(a)(3), substituted “and 1078–3” for “1078–3, and 1087–2(q)”.
Subsec. (d)(5). Pub. L. 110–315, §436(c), amended par. (5) generally. Prior to amendment, par. (5) related to disqualification for use of certain incentives.
Subsec. (d)(8). Pub. L. 110–315, §436(d), added par. (8).
Subsec. (m)(1)(A). Pub. L. 110–315, §436(e)(1)(A)(i), substituted “end of the second fiscal year following the fiscal year in which the students entered repayment” for “end of the following fiscal year” in first sentence.
Subsec. (m)(1)(B). Pub. L. 110–315, §436(e)(1)(A)(ii), substituted “such second fiscal year” for “such fiscal year”.
Subsec. (m)(1)(C). Pub. L. 110–315, §436(e)(1)(A)(iii), substituted “end of the second fiscal year following the year in which they entered repayment” for “end of the fiscal year immediately following the year in which they entered repayment”.
Subsec. (m)(2)(C). Pub. L. 110–315, §436(e)(1)(B), substituted “end of the second fiscal year following the year in which the loan entered repayment is not considered as in default for purposes of this subsection” for “end of such following fiscal year is not considered as in default for the purposes of this subsection” and “such second fiscal year” for “such following fiscal year”.
Subsec. (m)(4). Pub. L. 110–315, §436(e)(1)(C)(i), substituted “Collection and reporting of cohort default rates and life of cohort default rates” for “Collection and reporting of cohort default rates” in heading.
Subsec. (m)(4)(A). Pub. L. 110–315, §436(e)(1)(C)(ii), amended subpar. (A) generally. Prior to amendment, text read as follows: “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.”
2007—Subsec. (o)(1)(A)(ii). Pub. L. 110–84, §304(1)(A), substituted “150 percent of the poverty line applicable to the borrower's family size” for “100 percent of the poverty line for a family of 2” and inserted “or” after semicolon at end.
Subsec. (o)(1)(B), (C). Pub. L. 110–84, §304(1)(B), (C), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: “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”.
Subsec. (o)(2). Pub. L. 110–84, §304(2), substituted “(1)(B)” for “(1)(C)”.
Subsec. (p). Pub. L. 110–84, §304(3), added subsec. (p).
Subsec. (p)(1)(D). Pub. L. 110–109, §4(1), added subpar. (D) and struck out former subpar. (D) which read as follows: “a trustee acting as an eligible lender on behalf of a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C).”
Subsec. (p)(2)(A)(i)(II). Pub. L. 110–109, §4(2)(A), added subcl. (II) and struck out former subcl. (II) which read as follows: “is a trustee acting as an eligible lender under this chapter on behalf of such a State, political subdivision, authority, agency, instrumentality, or other entity described in subclause (I) of this clause.”
Subsec. (p)(2)(A)(ii). Pub. L. 110–109, §4(2)(B), inserted “of” after “waive the requirements”.
Subsec. (p)(2)(B). Pub. L. 110–109, §4(2)(C), reenacted heading without change and amended text of subpar. (B) generally. Prior to amendment, text read as follows: “No political subdivision, authority, agency, instrumentality, or other entity described in paragraph (1)(A), (B), or (C) shall be an eligible not-for-profit holder under this chapter if such entity is owned or controlled, in whole or in part, by a for-profit entity.”
Subsec. (p)(2)(C). Pub. L. 110–109, §4(2)(D), reenacted heading without change and amended text of subpar. (C) generally. Prior to amendment, text read as follows: “No State, political subdivision, authority, agency, instrumentality, or other entity described in paragraph (1)(A), (B), or (C) shall be an eligible not-for-profit holder under this chapter with respect to any loan, or income from any loan, unless the State, political subdivision, authority, agency, instrumentality, or other entity described in paragraph (1)(A), (B), or (C) is the sole owner of the beneficial interest in such loan and the income from such loan.”
Subsec. (p)(2)(D). Pub. L. 110–109, §4(2)(E), substituted “a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d),” for “an entity described in described in paragraph (1)(A), (B), or (C)”.
Subsec. (p)(2)(E). Pub. L. 110–109, §4(2)(F), reenacted heading without change and amended text of subpar. (E) generally. Prior to amendment, text read as follows: “For purposes of subparagraphs (B), (C), and (D) of this paragraph, a State, political subdivision, authority, agency, instrumentality, or other entity described in paragraph (1)(A), (B), or (C) shall not—
“(i) be deemed to be owned or controlled, in whole or in part, by a for-profit entity, or
“(ii) lose its status as the sole owner of a beneficial interest in a loan and the income from a loan by that political subdivision, authority, agency, instrumentality, or other entity,
by granting a security interest in, or otherwise pledging as collateral, such loan, or the income from such loan, to secure a debt obligation in the operation of an arrangement described in paragraph (1)(D).”
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, §1(a)(1) [title III, §308(a)], added subpar. (D).
Subsec. (a)(5)(A)(i). Pub. L. 106–554, §1(a)(1) [title III, §312(1)], substituted “July 1, 2004,” for “July 1, 2002,”.
Subsec. (a)(5)(B). Pub. L. 106–554, §1(a)(1) [title III, §312(2)], substituted “1999 through 2003” for “1999, 2000, and 2001” in introductory provisions.
1998—Subsec. (a)(1). Pub. L. 105–244, §102(b)(2), substituted “section 1002” for “section 1088”.
Subsec. (a)(2)(A). Pub. L. 105–244, §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, §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, §429(a)(1)(B), substituted “July 1, 1999,” for “July 1, 1998,” in introductory provisions.
Subsec. (a)(2)(C)(ii). Pub. L. 105–244, §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, §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, §429(a)(3), added pars. (4) to (6).
Subsec. (d)(1)(A)(ii)(III). Pub. L. 105–244, §429(b)(1)(A), added subcl. (III).
Subsec. (d)(1)(K). Pub. L. 105–244, §429(b)(1)(B)–(D), added subpar. (K).
Subsec. (d)(5). Pub. L. 105–244, §429(b)(2), inserted concluding provisions.
Subsec. (l). Pub. L. 105–244, §429(c)(1), substituted “270 days” for “180 days” and “330 days” for “240 days”.
Subsec. (m)(1)(B). Pub. L. 105–244, §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, §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, §429(d)(3), added subpar. (D).
1996—Subsec. (d)(1)(F). Pub. L. 104–208, §101(e) [title VI, §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, §101(e) [title VI, §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, §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, §357(4), substituted “(1)(C)” for “(1)(B)”.
1993—Subsec. (a)(3). Pub. L. 103–208, §2(c)(55), added par. (3).
Subsec. (d)(1). Pub. L. 103–66, §4106(b)(1), in par. (1) substituted “through (6)” for “through (5)” in introductory provisions.
Subsec. (d)(2). Pub. L. 103–208, §2(c)(57), realigned margins of closing provisions.
Subsec. (d)(2)(D). Pub. L. 103–208, §2(c)(56), substituted “lender;” for “lender; and”.
Subsec. (d)(3). Pub. L. 103–208, §2(c)(58), substituted “subsection (m)” for “subsection (o)”.
Subsec. (d)(6). Pub. L. 103–66, §4106(b)(2), added par. (6).
Subsec. (m)(1). Pub. L. 103–66, §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, §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, §2(c)(59), substituted “section 1078, 1078–1, or 1078–8” for “section 1078 or 1078–1”.
Pub. L. 103–66, §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, §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, §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, §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, §2(c)(62), added par. (4).
1992—Subsec. (a)(1). Pub. L. 102–325, §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, §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, §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, §427(a)(2), redesignated par. (3) as (2).
Subsec. (b). Pub. L. 102–325, §427(b)(1), struck out subsec. (b) which defined “institution of higher education”.
Subsec. (c). Pub. L. 102–325, §427(c), struck out subsec. (c) which defined “vocational school”.
Subsec. (d)(1)(A). Pub. L. 102–325, §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, §427(d)(2), added subpars. (E) and (F).
Subsec. (f). Pub. L. 102–325, §427(e), inserted “servicing and” before “collection practices”.
Subsecs. (g), (h). Pub. L. 102–325, §427(f), struck out subsec. (g) which defined “temporarily totally disabled” and subsec. (h) which defined “parental leave”.
Subsec. (m). Pub. L. 102–325, §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, §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, §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, §301(1), substituted “Except as provided in subsection (m) of this section, the term” for “The term”.
Subsec. (m). Pub. L. 101–542, §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, §2007(a)(1), substituted “Subject to subsection (n) of this section, the term” for “The term”.
Subsec. (m). Pub. L. 101–239, §2003(a)(2), added subsec. (m).
Subsec. (n). Pub. L. 101–239, §2007(a)(2), added subsec. (n).
1987—Subsec. (b)(3). Pub. L. 100–50, §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, §10(aa)(2), added subpar. (J).
Subsec. (d)(2). Pub. L. 100–50, §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, §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, §10(aa)(5), struck out “Definition of” before “Parental” in heading.
Amendment by Pub. L. 111–152 effective July 1, 2010, see section 2101(c) of Pub. L. 111–152, set out as a note under section 1070a of this title.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 110–315, title IV, §436(a)(2), Aug. 14, 2008, 122 Stat. 3254, provided that: “The amendment made by paragraph (1)(F) [amending this section] shall take effect for fiscal years beginning on or after October 1, 2011.”
Pub. L. 110–315, title IV, §436(e)(2), Aug. 14, 2008, 122 Stat. 3257, provided that:
“(A)
“(B)
Amendment by Pub. L. 110–84 effective Oct. 1, 2007, see section 1(c) of Pub. L. 110–84, set out as a note under section 1070a of this title.
Pub. L. 109–292, §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.
Pub. L. 106–554, §1(a)(1) [title III, §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.”
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, §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].”
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, §602(b)(1)(B)] of Pub. L. 104–208, set out as a note under section 1078–3 of this title.
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.
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.”
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.”
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.
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.
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)].”
1 See References in Text note below.
2 So in original. Probably should be “with respect to the”.
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.
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.
(Pub. L. 89–329, title IV, §436, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1413; amended Pub. L. 105–244, title IV, §430, Oct. 7, 1998, 112 Stat. 1709.)
A prior section 1086, Pub. L. 89–329, title IV, §436, as added Pub. L. 89–752, §12, Nov. 3, 1966, 80 Stat. 1244; amended Pub. L. 90–575, title I, §116(b)(5), Oct. 16, 1968, 82 Stat. 1024; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2132; Pub. L. 96–374, title XIII, §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.
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.
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.
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), or if a student borrower who has received such a loan is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months then the Secretary shall discharge the borrower's liability on the loan by repaying the amount owed on the loan. The Secretary may develop such safeguards as the Secretary determines necessary to prevent fraud and abuse in the discharge of liability under this subsection. Notwithstanding any other provision of this subsection, the Secretary may promulgate regulations to reinstate the obligation of, and resume collection on, loans discharged under this subsection in any case in which—
(A) a borrower received a discharge of liability under this subsection and after the discharge the borrower—
(i) receives a loan made, insured, or guaranteed under this subchapter and part C of subchapter I of chapter 34 of title 42; or
(ii) has earned income in excess of the poverty line; or
(B) the Secretary determines the reinstatement and resumption to be necessary.
A borrower who has been determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected condition and who provides documentation of such determination to the Secretary of Education, shall be considered permanently and totally disabled for the purpose of discharging such borrower's loans under this subsection, and such borrower shall not be required to present additional documentation for purposes of this subsection.
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.
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 authorizing committees annually as to the dollar amount of loan discharges attributable to failures to make refunds.
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.
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.
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.
The Secretary shall report to consumer reporting agencies with respect to loans which have been discharged pursuant to this subsection.
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.
(Pub. L. 89–329, title IV, §437, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1414; amended Pub. L. 102–325, title IV, §428, July 23, 1992, 106 Stat. 551; Pub. L. 103–208, §2(c)(63)–(65), Dec. 20, 1993, 107 Stat. 2469; Pub. L. 105–244, title IV, §431, Oct. 7, 1998, 112 Stat. 1709; Pub. L. 109–171, title VIII, §8012, Feb. 8, 2006, 120 Stat. 166; Pub. L. 110–315, title I, §103(b)(7), title IV, §§432(b)(4), 437(a), (b), Aug. 14, 2008, 122 Stat. 3089, 3246, 3257, 3258; Pub. L. 111–39, title IV, §402(e)(1), July 1, 2009, 123 Stat. 1942.)
Section 1078–1 of this title, referred to in subsec. (b), was repealed by Pub. L. 103–66, title IV, §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, §418, Oct. 7, 1998, 112 Stat. 1691.
A prior section 1087, Pub. L. 89–329, title IV, §437, as added Pub. L. 90–575, title I, §113(a), Oct. 16, 1968, 82 Stat. 1020; amended Pub. L. 92–318, title I, §132D(a), June 23, 1972, 86 Stat. 263; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2133; Pub. L. 96–374, title XIII, §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.
2009—Subsec. (a)(1). Pub. L. 111–39 substituted “Secretary), or if” for “Secretary),, or if” in introductory provisions and inserted “the reinstatement and resumption to be” after “determines” in subpar. (B).
2008—Subsec. (a). Pub. L. 110–315, §437(a)(3), which directed insertion of “The Secretary may develop such safeguards as the Secretary determines necessary to prevent fraud and abuse in the discharge of liability under this subsection. Notwithstanding any other provision of this subsection, the Secretary may promulgate regulations to reinstate the obligation of, and resume collection on, loans discharged under this subsection in any case in which—
“(A) a borrower received a discharge of liability under this subsection and after the discharge the borrower—
“(i) receives a loan made, insured, or guaranteed under this subchapter and part C of subchapter I of chapter 34 of title 42; or
“(ii) has earned income in excess of the poverty line; or
“(B) the Secretary determines necessary.”
at the end of subsec. (a), was executed by making the insertion at the end of par. (1) to reflect the probable intent of Congress, notwithstanding the addition of par. (2) prior to the effective date of this amendment.
Pub. L. 110–315, §437(a)(1), (2), designated existing provisions as par. (1), inserted par. (1) heading, and inserted “, or if a student borrower who has received such a loan is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months” after “of the Secretary),”.
Subsec. (a)(2). Pub. L. 110–315, §437(b), added par. (2).
Subsec. (c)(1). Pub. L. 110–315, §103(b)(7), substituted “authorizing committees” for “Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate”.
Subsec. (c)(5). Pub. L. 110–315, §432(b)(4), substituted “consumer reporting agencies” for “credit bureaus”.
2006—Pub. L. 109–171, §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, §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, §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, §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, §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.
Pub. L. 111–39, title IV, §402(e)(2), July 1, 2009, 123 Stat. 1943, provided that: “The amendments made by paragraph (1) [amending this section] shall be effective as if enacted as part of the amendments in section 437(a) of the Higher Education Opportunity Act (Public Law 110–315) [amending this section], and shall take effect on July 1, 2010.”
Pub. L. 110–315, title IV, §437(c), Aug. 14, 2008, 122 Stat. 3258, provided that: “The amendments made by subsection (a) [amending this section] shall take effect on July 1, 2010.”
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. 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. 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.
1 See References in Text note below.
Section, Pub. L. 89–329, title IV, §437A, as added Pub. L. 102–325, title IV, §429, July 23, 1992, 106 Stat. 552; amended Pub. L. 103–208, §2(c)(66)–(68), Dec. 20, 1993, 107 Stat. 2469, related to debt management options.
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.
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.
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.
(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(i) 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(i) of this title.
(G)
(i)
(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)
(iii)
(iv)
(v)
(H)
(i)
(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)
(iii)
(iv)
(v)
(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)
(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)
(i)
(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 the rate determined under subclause (I) (in accordance with clause (vii));
(III) by adding 2.34 percent to the resultant percent; and
(IV) by dividing the resultant percent by 4.
(ii)
(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 before July 1, 2010, and for which the applicable rate of interest is described in section 1077a(l)(1) or (l)(4) 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)
(iv)
(v)
(I)
(II)
(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)
(vi)
(I) for loans held by an eligible lender not described in subclause (II)—
(aa) by substituting “1.79 percent” for “2.34 percent” each place the term appears in this subparagraph;
(bb) by substituting “1.19 percent” for “1.74 percent” in clause (ii);
(cc) by substituting “1.79 percent” for “2.64 percent” in clause (iii); and
(dd) by substituting “2.09 percent” for “2.64 percent” in clause (iv); and
(II) for loans held by an eligible not-for-profit holder—
(aa) by substituting “1.94 percent” for “2.34 percent” each place the term appears in this subparagraph;
(bb) by substituting “1.34 percent” for “1.74 percent” in clause (ii);
(cc) by substituting “1.94 percent” for “2.64 percent” in clause (iii); and
(dd) by substituting “2.24 percent” for “2.64 percent” in clause (iv).
(vii)
(I)
(II)
(III)
(aa)
(AA) all loans described in such subclause that the lender holds solely in its own right under any lender identification number associated with the holder (pursuant to section 1094b of this title);
(BB) all loans described in such subclause for which the beneficial owner has the authority to make an election of a waiver under such subclause, regardless of the lender identification number associated with the loan or the lender that holds the loan as eligible lender trustee on behalf of such beneficial owner; and
(CC) all future calculations of the special allowance on loans that, on the date of such waiver, are loans described in subitem (AA) or (BB), or that, after such date, become loans described in subitem (AA) or (BB).
(bb)
(AA) in accordance with an agreement entered into before the date of enactment of this section by which such lender or owner is governed and that applies to such loans, such lender or owner is not legally permitted to make an election of such waiver with respect to such loans without the approval of one or more third parties with an interest in the loans, and that the lender or owner followed all available options under such agreement to obtain such approval, and was unable to do so; or
(BB) such lender or beneficial owner presented the proposal of electing such a waiver applicable to such loans associated with an obligation rated by a nationally recognized statistical rating organization (as defined in section 78c(a)(62) of title 15), and such rating organization provided a written opinion that the agency would downgrade the rating applicable to such obligation if the lender or owner elected such a waiver.
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.
(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.
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 1078–1,1 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.
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.
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.
(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.
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.
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; and
(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.
Such origination fee shall not be taken into account for purposes of determining compliance with section 1077a of this title.
The lender shall disclose to the borrower the amount and method of calculating the origination fee.
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.
With respect to any loans made under section 1078–1 1 or 1078–2 of this title on or after October 1, 1992, and first disbursed before July 1, 2010, 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.
All origination fees collected pursuant to this section on loans authorized under section 1078–1 1 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.
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.
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.
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.
The amount of the loan fee which shall be deducted under paragraph (1), but which may not be collected from the borrower, shall be equal to—
(A) except as provided in subparagraph (B), 0.50 percent of the principal amount of the loan with respect to any loan under this part for which the first disbursement was made on or after October 1, 1993; and
(B) 1.0 percent of the principal amount of the loan with respect to any loan under this part for which the first disbursement was made on or after October 1, 2007, and before July 1, 2010.
The Secretary shall deposit all fees collected pursuant to paragraph (3) into the insurance fund established in section 1081 of this title.
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.
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.
With respect to any loan made under this part for which the interest rate is determined under the Servicemembers Civil Relief Act (50 U.S.C. App. 527), the applicable interest rate to be subtracted in calculating the special allowance for such loan under this section shall be the interest rate determined under that Act for such loan.
(Pub. L. 89–329, title IV, §438, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1414; amended Pub. L. 100–50, §10(d)(2), (bb), (cc), June 3, 1987, 101 Stat. 342, 347; Pub. L. 100–369, §7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102–325, title IV, §430, July 23, 1992, 106 Stat. 553; Pub. L. 103–66, title IV, §§4102(a), 4103, 4105, 4111, Aug. 10, 1993, 107 Stat. 366, 367, 368, 370; Pub. L. 105–178, title VIII, §8301(b), June 9, 1998, 112 Stat. 497; Pub. L. 105–244, title IV, §§416(b)(1), (3), 433(a)–(d)(1), Oct. 7, 1998, 112 Stat. 1680, 1682, 1710, 1711; Pub. L. 106–170, title IV, §409(a), Dec. 17, 1999, 113 Stat. 1914; Pub. L. 107–139, §2, Feb. 8, 2002, 116 Stat. 10; Pub. L. 108–409, §2, Oct. 30, 2004, 118 Stat. 2299; Pub. L. 109–150, §2(b), (c)(2), Dec. 30, 2005, 119 Stat. 2884; Pub. L. 109–171, title VIII, §§8006(b)(1), 8008(c)(1), 8013(a)–(c)(1), (d)(1), Feb. 8, 2006, 120 Stat. 159, 162, 166, 167; Pub. L. 110–84, title II, §201(a)(2), title III, §§302(b)(2), 305, Sept. 27, 2007, 121 Stat. 791, 796, 799; Pub. L. 110–315, title IV, §422(g)(2), Aug. 14, 2008, 122 Stat. 3230; Pub. L. 111–39, title IV, §402(f)(11), July 1, 2009, 123 Stat. 1945; Pub. L. 111–152, title II, §2208, Mar. 30, 2010, 124 Stat. 1077; Pub. L. 112–74, div. F, title III, §309(e), Dec. 23, 2011, 125 Stat. 1101.)
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, §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, §418, Oct. 7, 1998, 112 Stat. 1691.
The date of enactment of this section, referred to in subsec. (b)(2)(I)(vii)(III)(bb)(AA), probably means the date of enactment of Pub. L. 112–74, which enacted subsec. (b)(2)(I)(vii) and was approved Dec. 23, 2011.
The Servicemembers Civil Relief Act, referred to in subsec. (g), is act Oct. 17, 1940, ch. 888, 54 Stat. 1178, which is classified to section 501 et seq. of Title 50, Appendix, War and National Defense. For complete classification of this Act to the Code, see section 501 of Title 50, Appendix, and Tables.
A prior section 1087–1, Pub. L. 89–329, title IV, §438, as added Pub. L. 92–318, title I, §132E(a), June 23, 1972, 86 Stat. 264; amended Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2133; Pub. L. 95–43, §1(a)(37), June 15, 1977, 91 Stat. 216; Pub. L. 96–49, §5(c)(1), Aug. 13, 1979, 93 Stat. 352; Pub. L. 96–374, title IV, §§420(a), 451(d), title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1425, 1458, 1503; Pub. L. 97–35, title V, §§532(b)(4), 534(b), 536(a), Aug. 13, 1981, 95 Stat. 452, 454, 455; Pub. L. 98–79, §7(a), (c), Aug. 15, 1983, 97 Stat. 482, 483; Pub. L. 99–272, title XVI, §§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, §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, §7(b), Aug. 15, 1983, 97 Stat. 483.
2011—Subsec. (b)(2)(I)(i)(II). Pub. L. 112–74, §309(e)(2)(A), substituted “the rate determined under subclause (I) (in accordance with clause (vii))” for “such average bond equivalent rate”.
Subsec. (b)(2)(I)(v)(III). Pub. L. 112–74, §309(e)(2)(B), substituted “(iv), (vi), and (vii)” for “(iv), and (vi)”.
Subsec. (b)(2)(I)(vii). Pub. L. 112–74, §309(e)(1), added cl. (vii).
2010—Subsec. (b)(2)(I). Pub. L. 111–152, §2208(1)(A), which directed amendment of subpar. (I) “in the subclause heading” by inserting “, and before july 1, 2010” after “2000”, was executed in subpar. (I) heading to reflect the probable intent of Congress.
Subsec. (b)(2)(I)(i). Pub. L. 111–152, §2208(1)(B), inserted “and before July 1, 2010,” after “2000,” in introductory provisions.
Subsec. (b)(2)(I)(ii)(II). Pub. L. 111–152, §2208(1)(C), inserted “and before July 1, 2010,” after “2006,”.
Subsec. (b)(2)(I)(iii). Pub. L. 111–152, §2208(1)(D), inserted “and before July 1, 2010,” after “2000,”.
Subsec. (b)(2)(I)(iv). Pub. L. 111–152, §2208(1)(E), inserted “and that is disbursed before July 1, 2010,” after “2000,”.
Subsec. (b)(2)(I)(v)(I). Pub. L. 111–152, §2208(1)(F), inserted “and before July 1, 2010,” after “2006,”.
Subsec. (b)(2)(I)(vi). Pub. L. 111–152, §2208(1)(G), inserted “, and before july 1, 2010” after “2007” in heading and “and before July 1, 2010,” after “2007,” in introductory provisions.
Subsec. (c)(2)(B)(iii) to (v). Pub. L. 111–152, §2208(2)(A), inserted “and” after semicolon in cl. (iii), substituted period for “; and” at end of cl. (iv), and struck out cl. (v), which read as follows: “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.”
Subsec. (c)(6). Pub. L. 111–152, §2208(2)(B), inserted “and first disbursed before July 1, 2010,” after “1992,”.
Subsec. (d)(2)(B). Pub. L. 111–152, §2208(3), inserted “, and before July 1, 2010” after “2007”.
2009—Subsec. (b)(2)(A). Pub. L. 111–39, §402(f)(11)(A), substituted “1077a(i)” for “1077a(f)”.
Subsec. (b)(2)(B)(i). Pub. L. 111–39, §402(f)(11)(B), which directed substitution of “1986” for “1954” in the first sentence, could not be executed because “1954” did not appear in original text subsequent to amendment by Pub. L. 100–369. See 1988 Amendment note below.
Subsec. (b)(2)(F). Pub. L. 111–39, §402(f)(11)(C), substituted “1077a(i)” for “1077a(f)”.
2008—Subsec. (g). Pub. L. 110–315 added subsec. (g).
2007—Subsec. (b)(2)(I)(i). Pub. L. 110–84, §305(a)(1), substituted “the following clauses” for “clauses (ii), (iii), and (iv)”.
Subsec. (b)(2)(I)(ii)(II). Pub. L. 110–84, §201(a)(2), substituted “section 1077a(l)(1) or (l)(4)” for “section 1077a(l)(1)”.
Subsec. (b)(2)(I)(v)(III). Pub. L. 110–84, §305(a)(2), substituted “clauses (ii), (iii), (iv), and (vi)” for “clauses (ii), (iii), and (iv)”.
Subsec. (b)(2)(I)(vi). Pub. L. 110–84, §305(a)(3), added cl. (vi).
Subsec. (b)(5). Pub. L. 110–84, §302(b)(2), struck out concluding provisions which read as follows: “As used in this section, the term ‘eligible loan’ includes all loans subject to section 1078–9 of this title.”
Subsec. (d)(2). Pub. L. 110–84, §305(b), amended par. (2) generally. Prior to amendment, text read as follows: “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.”
2006—Subsec. (b)(2)(B). Pub. L. 109–171, §8013(d)(1), repealed Pub. L. 109–150, §2(b), (c)(2). See 2005 Amendment note below.
Pub. L. 109–171, §8013(c)(1), amended directory language of Pub. L. 108–409, §2. See 2004 Amendment note below.
Subsec. (b)(2)(B)(iv). Pub. L. 109–171, §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, §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, §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, §8013(b), added cls. (vi) and (vii).
Subsec. (b)(2)(I)(iii). Pub. L. 109–171, §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, §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, §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, §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, §2(c)(2), which directed amendment of directory language of Pub. L. 108–409, §2, was repealed by Pub. L. 109–171, §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, §2(b), which directed substitution of “April 1, 2006” for “January 1, 2006” wherever appearing, was repealed by Pub. L. 109–171, §8013(d)(1). See Effective Date of 2006 Amendment note below.
2004—Subsec. (b)(2)(B). Pub. L. 108–409, §2, as amended by Pub. L. 109–171, §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, §2(c)(2), which made an amendment to directory language of Pub. L. 108–409, §2, identical to that made by Pub. L. 109–171, §8013(c)(1), was repealed by Pub. L. 109–171, §8013(d)(1). See Effective Date of 2006 Amendment note below.
2002—Subsec. (b)(2)(I). Pub. L. 107–139, §2(1), struck out “
Subsec. (b)(2)(I)(i). Pub. L. 107–139, §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, §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, §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, §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, §2(6), inserted “
Subsec. (b)(2)(I)(vi). Pub. L. 107–139, §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, §2(8), added cl. (vii).
1999—Subsec. (b)(2)(A). Pub. L. 106–170, §409(a)(1), substituted “(G), (H), and (I)” for “(G), and (H)” in first sentence.
Subsec. (b)(2)(B)(iv). Pub. L. 106–170, §409(a)(2), substituted “(G), (H), or (I)” for “(G), or (H)” in first sentence.
Subsec. (b)(2)(C)(ii). Pub. L. 106–170, §409(a)(3), substituted “(G), (H), and (I)” for “(G) and (H)” in introductory provisions.
Subsec. (b)(2)(H). Pub. L. 106–170, §409(a)(4), (5), substituted “
Subsec. (b)(2)(I). Pub. L. 106–170, §409(a)(6), added subpar. (I).
1998—Subsec. (b)(2)(A). Pub. L. 105–244, §416(b)(3)(A), substituted “(F), (G), and (H)” for “(F), and (G)”.
Pub. L. 105–178, §8301(b)(2)(A), substituted “(E), (F), and (G)” for “(E), and (F)”.
Subsec. (b)(2)(B)(iv). Pub. L. 105–244, §416(b)(3)(B), substituted “(F), (G), or (H)” for “(F), or (G)”.
Pub. L. 105–178, §8301(b)(2)(B), substituted “(E), (F), or (G)” for “(E), or (F)”.
Subsec. (b)(2)(C)(ii). Pub. L. 105–244, §416(b)(3)(C), substituted “subparagraphs (G) and (H)” for “subparagraph (G)”.
Pub. L. 105–178, §8301(b)(2)(C), substituted “Subject to subparagraph (G), in the case” for “In the case”.
Subsec. (b)(2)(G). Pub. L. 105–178, §8301(b)(1), added subpar. (G).
Subsec. (b)(2)(H). Pub. L. 105–244, §416(b)(1), added subpar. (H).
Subsec. (c)(1). Pub. L. 105–244, §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, §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, §433(b)(2), added par. (8).
Subsec. (d)(1). Pub. L. 105–244, §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, §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, §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, §4105, added cl. (iv).
Subsec. (b)(2)(E), (F). Pub. L. 103–66, §4111(2), added subpars. (E) and (F).
Subsec. (c). Pub. L. 103–66, §4102(a)(1), inserted “from students” after “origination fees” in heading.
Subsec. (c)(2). Pub. L. 103–66, §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, §4102(a)(2)(B), substituted “3.0 percent” for “5 percent”.
Subsecs. (d) to (f). Pub. L. 103–66, §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, §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, §430(a)(3), substituted “3.10” for “3.25”.
Subsec. (b)(2)(B)(ii). Pub. L. 102–325, §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, §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, §430(a)(6), substituted “3.10” for “3.25”.
Subsec. (b)(5). Pub. L. 102–325, §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, §430(b), inserted “1078–8,” after “1078–3,”.
Subsec. (c)(2). Pub. L. 102–325, §430(d)(1), substituted “Subject to paragraph (6) of this subsection, with” for “With”.
Subsec. (c)(6), (7). Pub. L. 102–325, §430(d)(2), added pars. (6) and (7).
Subsec. (d)(2)(C). Pub. L. 102–325, §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, §10(bb)(1), substituted “subsection (d) of this section” for “subsection (c) of this section”.
Subsec. (b)(2)(C). Pub. L. 100–50, §10(d)(2), substituted “12 percent” for “12.5 percent”.
Subsec. (b)(7). Pub. L. 100–50, §10(bb)(2), added par. (7).
Subsec. (d)(4)(C). Pub. L. 100–50, §10(cc), struck out “, as evidenced by the information submitted under paragraph (2)(G) of this subsection” after “fiscal year”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Amendment by Pub. L. 110–315 effective for loans for which the first disbursement is made on or after July 1, 2008, see section 422(g)(3) of Pub. L. 110–315, set out as a note under section 1078 of this title.
Amendment by sections 201(a)(2) and 305 of Pub. L. 110–84 effective Oct. 1, 2007, see section 1(c) of Pub. L. 110–84, set out as a note under section 1070a of this title.
Amendment by section 302(b)(2) of Pub. L. 110–84 effective Oct. 1, 2007, see section 302(c) of Pub. L. 110–84, set out as a note under section 1078 of this title.
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, §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, §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, §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.”
Pub. L. 109–150, §2(d), Dec. 30, 2005, 119 Stat. 2884, provided that:
“(1)
“(2)
Pub. L. 106–170, title IV, §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.”
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, §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).”
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.
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.
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.
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.
1 See References in Text note below.
3 So in original. Probably should be followed by a comma.
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.
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.
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.
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.
(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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
(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.
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.
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.
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.
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.
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.
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.
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.
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.
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) 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) 1 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.
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.
(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.
(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.
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.
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.
(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)
(i)
(ii)
(E)
(i)
(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)
(iii)
(F)
(i)
(ii)
(I)
(II)
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
Restrict or eliminate growth of the Association's assets, other than student loans purchases and warehousing advances.
Restrict the Association from making any capital distribution.
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.
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.
(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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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).
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).
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.
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).
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:
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.
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.
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.
After compliance with subparagraphs (A) and (C), the Association shall transfer to the shareholders of the Association any remaining assets of the Association.
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.
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.
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).
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.
(Pub. L. 89–329, title IV, §439, as added Pub. L. 99–498, title IV, §402(a), Oct. 17, 1986, 100 Stat. 1418; amended Pub. L. 100–50, §10(dd), June 3, 1987, 101 Stat. 347; Pub. L. 100–369, §7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102–325, title IV, §431, July 23, 1992, 106 Stat. 554; Pub. L. 103–66, title IV, §§4041(c), 4104, Aug. 10, 1993, 107 Stat. 356, 367; Pub. L. 103–208, §2(c)(69), Dec. 20, 1993, 107 Stat. 2470; Pub. L. 103–382, title III, §358, Oct. 20, 1994, 108 Stat. 3968; Pub. L. 104–208, div. A, title I, §101(e) [title VI, §602(b)(2)–(4), (c)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–284 to 3009–286; Pub. L. 106–554, §1(a)(1) [title III, §309], Dec. 21, 2000, 114 Stat. 2763, 2763A–45; Pub. L. 108–271, §8(b), July 7, 2004, 118 Stat. 814; Pub. L. 109–291, §4(b)(5), Sept. 29, 2006, 120 Stat. 1338.)
Pub. L. 104–208, div. A, title I, §101(e) [title VI, §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.
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.
Section 1078(h) of this title, referred to in subsec. (p)(1), was repealed by Pub. L. 110–315, title IV, §438(a)(2)(B), Aug. 14, 2008, 122 Stat. 3258.
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, §4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.
A prior section 1087–2, Pub. L. 89–329, title IV, §439, as added Pub. L. 92–318, title I, §133(a), June 23, 1972, 86 Stat. 265; amended Pub. L. 94–273, §3(9), Apr. 21, 1976, 90 Stat. 376; Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2136; Pub. L. 95–43, §1(a)(38), June 15, 1977, 91 Stat. 217; Pub. L. 96–374, title IV, §421(a)–(e)(1), title XIII, §1391(a)(1), (3), Oct. 3, 1980, 94 Stat. 1427–1430, 1503; Pub. L. 97–35, title V, §538, Aug. 13, 1981, 95 Stat. 457; Pub. L. 97–115, §18, Dec. 29, 1981, 95 Stat. 1610; Pub. L. 97–301, §14, Oct. 13, 1982, 96 Stat. 1405; Pub. L. 98–79, §§2, 8, Aug. 15, 1983, 97 Stat. 476, 483; Pub. L. 99–272, title XVI, §§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.
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, §1(a)(1) [title III, §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, §1(a)(1) [title III, §309(2)], added subpar. (F).
1996—Subsec. (r)(1)(C). Pub. L. 104–208, §101(e) [title VI, §602(b)(3)(A)], added subpar. (C).
Subsec. (r)(2)(A)(i), (ii). Pub. L. 104–208, §101(e) [title VI, §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, §101(e) [title VI, §602(b)(3)(B)(ii)], added subpar. (D).
Subsec. (r)(2)(E). Pub. L. 104–208, §101(e) [title VI, §602(b)(4)(A)], added subpar. (E).
Subsec. (r)(12). Pub. L. 104–208, §101(e) [title VI, §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, §101(e) [title VI, §602(b)(2)(B), (C)], added par. (13) and redesignated former par. (13) as (15).
Subsec. (r)(14). Pub. L. 104–208, §101(e) [title VI, §602(b)(3)(C)], added par. (14).
Subsec. (r)(15). Pub. L. 104–208, §101(e) [title VI, §602(b)(2)(B)], redesignated par. (13) as (15).
Subsec. (r)(16), (17). Pub. L. 104–208, §101(e), [title VI, §602(b)(4)(B)], added pars. (16) and (17).
Subsec. (s). Pub. L. 104–208, §101(e) [title VI, §602(c)], added subsec. (s).
1994—Subsec. (d)(1)(C). Pub. L. 103–382, §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, §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, §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, §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, §4104, added par. (7).
Subsec. (q). Pub. L. 103–66, §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, §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, §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, §431(c), substituted “second highest rating” for “third highest rating”.
Subsec. (f). Pub. L. 102–325, §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, §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”.
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 changed to Committee on Education and the Workforce of House of Representatives by House Resolution No. 5, One Hundred Twelfth Congress, Jan. 5, 2011.
Section 101(e) [title VI, §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.”
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. 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.
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.
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.
Section 101(e) [title VI, §602(e), (f)] of div. A of Pub. L. 104–208 provided that:
“(e)
“(f)
1 See References in Text note below.
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.
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.
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:
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 and part C of subchapter I of chapter 34 of title 42 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).
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
At least one officer of the Association shall be an officer solely of the Association.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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.
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.
For purposes of this section:
The term “Association” means the Student Loan Marketing Association.
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.
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.
The term “remaining obligations” means the debt obligations of the Association outstanding as of the dissolution date.
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.
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.
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.
The term “subsidiary” means one or more direct or indirect subsidiaries.
(Pub. L. 89–329, title IV, §440, as added Pub. L. 104–208, div. A, title I, §101(e) [title VI, §602(a)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–275.)
Pub. L. 104–208, div. A, title I, §101(e) [title VI, §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.
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, §101(e) [title VI, §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.
A prior section 1087–3, Pub. L. 89–329, title IV, §439A, as added Pub. L. 94–482, title I, §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, §317, Nov. 6, 1978, 92 Stat. 2678, eff. Nov. 6, 1978.
A prior section 1087–3a, Pub. L. 89–329, title IV, §439B, as added Pub. L. 95–566, §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, §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.
1 See References in Text note below.
2 See References in Text note below.
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.
(Pub. L. 89–329, title IV, §440A, as added Pub. L. 104–208, div. A, title I, §101(e) [title VI, §604], Sept. 30, 1996, 110 Stat. 3009–233, 3009–293.)
A prior section 1087–4, Pub. L. 89–329, title IV, §440, as added Pub. L. 94–482, title I, §127(a), Oct. 12, 1976, 90 Stat. 2141, provided for criminal penalties, prior to repeal by Pub. L. 96–374, title IV, §451(b), Oct. 3, 1980, 94 Stat. 1458, eff. Oct. 1, 1980. See section 1097 of this title.
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, §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.
There are hereby made available, in accordance with the provisions of this part, such sums as may be necessary (1) 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; and (2) for purchasing loans under section 1087i–1 of this title. Loans made under this part 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).
The program established under this part shall be referred to as the “William D. Ford Federal Direct Loan Program”.
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”.
(Pub. L. 89–329, title IV, §451, as added Pub. L. 99–498, title IV, §404, Oct. 17, 1986, 100 Stat. 1437; amended Pub. L. 102–325, title IV, §451, July 23, 1992, 106 Stat. 569; Pub. L. 103–66, title IV, §4021, Aug. 10, 1993, 107 Stat. 341; Pub. L. 103–382, title III, §358A, Oct. 20, 1994, 108 Stat. 3968; Pub. L. 110–227, §7(a), May 7, 2008, 122 Stat. 746.)
A prior section 1087a, Pub. L. 89–329, title IV, §451, as added Pub. L. 90–575, title I, §141, Oct. 16, 1968, 82 Stat. 1031; amended Pub. L. 92–318, title I, §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, §129(a), Oct. 12, 1976, 90 Stat. 2144, eff. 30 days after Oct. 12, 1976.
2008—Subsec. (a). Pub. L. 110–227, in first sentence, inserted “(1)” before “to make loans” and “; and (2) for purchasing loans under section 1087i–1 of this title” before period at end and, in second sentence, substituted “Loans made under this part shall” for “Such loans shall”.
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.
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.
Section 452 of Pub. L. 102–325 provided that:
“(a)
“(b)
“(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.”
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.
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.
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.
Loan funds for students (and parents of students) attending institutions outside the United States shall be disbursed through a financial institution located or operating in the United States and designated by the Secretary to serve as the agent of such institutions with respect to the receipt of the disbursements of such loan funds and the transfer of such funds to such institutions. To be eligible to receive funds under this part, an institution outside the United States shall make arrangements with the agent designated by the Secretary under this subsection to receive funds under this part.
(Pub. L. 89–329, title IV, §452, as added Pub. L. 99–498, title IV, §404, Oct. 17, 1986, 100 Stat. 1437; amended Pub. L. 102–325, title IV, §451, July 23, 1992, 106 Stat. 569; Pub. L. 103–66, title IV, §4021, Aug. 10, 1993, 107 Stat. 341; Pub. L. 105–33, title VI, §6102, Aug. 5, 1997, 111 Stat. 652; Pub. L. 105–244, title IV, §401(g)(5), Oct. 7, 1998, 112 Stat. 1652; Pub. L. 111–152, title II, §2209(a), Mar. 30, 2010, 124 Stat. 1077.)
A prior section 1087b, Pub. L. 89–329, title IV, §452, as added Pub. L. 90–575, title I, §141, Oct. 16, 1968, 82 Stat. 1031, authorized grants for programs of cooperative education, prior to repeal by Pub. L. 94–482, title I, §129(a), Oct. 12, 1976, 90 Stat. 2144, eff. 30 days after Oct. 12, 1976.
2010—Subsec. (d). Pub. L. 111–152 added subsec. (d).
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.
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. 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.
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.
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.
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.
The Secretary may enter into a supplemental agreement with an institution (or a consortium of such institutions) that—
(A) has an agreement under subsection 1 1087d(a) of this title;
(B) desires to originate loans under this part; and
(C) meets the criteria described in paragraph (2).
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.
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.
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.
(Pub. L. 89–329, title IV, §453, as added Pub. L. 99–498, title IV, §404, Oct. 17, 1986, 100 Stat. 1438; amended Pub. L. 102–325, title IV, §451, July 23, 1992, 106 Stat. 569; Pub. L. 103–66, title IV, §4021, Aug. 10, 1993, 107 Stat. 342; Pub. L. 103–208, §2(e), Dec. 20, 1993, 107 Stat. 2470; Pub. L. 105–244, title IV, §451, Oct. 7, 1998, 112 Stat. 1715; Pub. L. 111–39, title IV, §404(b)(1), July 1, 2009, 123 Stat. 1946.)
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.
A prior section 1087c, Pub. L. 89–329, title IV, §453, as added Pub. L. 90–575, title I, §141, Oct. 16, 1968, 82 Stat. 1032; amended Pub. L. 92–318, title I, §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, §129(a), Oct. 12, 1976, 90 Stat. 2144, eff. 30 days after Oct. 12, 1976.
2009—Subsec. (c)(3). Pub. L. 111–39 struck out par. (3). Text read as follows: “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.”
1998—Subsec. (a). Pub. L. 105–244, §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, §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, §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, §451(c)(1)(E), redesignated subpar. (B) as (A).
Pub. L. 105–244, §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, §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, §451(c)(1)(E), redesignated subpar. (G) as (E).
Pub. L. 105–244, §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, §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, §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.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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. 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. 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.
1 So in original. Probably should be “section”.
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 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;
(5) 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
(6) 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.
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), and (6) 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.
The Secretary shall establish procedures by which institutions or consortia may withdraw or be terminated from the program under this part.
(Pub. L. 89–329, title IV, §454, as added Pub. L. 99–498, title IV, §404, Oct. 17, 1986, 100 Stat. 1438; amended Pub. L. 100–50, §12, June 3, 1987, 101 Stat. 348; Pub. L. 102–325, title IV, §451, July 23, 1992, 106 Stat. 571; Pub. L. 103–66, title IV, §4021, Aug. 10, 1993, 107 Stat. 345; Pub. L. 111–152, title II, §2210(a), Mar. 30, 2010, 124 Stat. 1078.)
2010—Subsec. (a)(4) to (7). Pub. L. 111–152, §2210(a)(1), redesignated pars. (5) to (7) as (4) to (6), respectively, and struck out former par. (4), which read as follows: “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;”.
Subsec. (b)(2). Pub. L. 111–152, §2210(a)(2), substituted “(5), and (6)” for “(5), (6), and (7)”.
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.”
Pub. L. 111–152, title II, §2210(b), Mar. 30, 2010, 124 Stat. 1078, provided that: “The amendments made by subsection (a) [amending this section] shall take effect on July 1, 2010.”
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.
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.
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, and first disbursed on June 30, 2010, under sections 1078, 1078–2, 1078–3, and 1078–8 of this title.
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”.
Subject to subparagraph (B) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2012—
(i) a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part; and
(ii) the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 1088(a)(2) of this title) or its equivalent shall be the maximum annual amount for such student determined under section 1078–8 of this title, plus an amount equal to the amount of Federal Direct Stafford loans the student would have received in the absence of this subparagraph.
Subparagraph (A) shall not apply to an individual enrolled in course work specified in paragraph (3)(B) or (4)(B) of section 1091(b) of this title.
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.
(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.
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.
(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.
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.
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”.
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”.
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.
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”.
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”.
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.
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.
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.
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.
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.
Notwithstanding the preceding paragraphs of this subsection and subparagraph (A) of this paragraph, for Federal Direct Stafford Loans made to undergraduate students for which the first disbursement is made on or after July 1, 2006, and before July 1, 2012, the applicable rate of interest shall be as follows:
(i) For a loan for which the first disbursement is made on or after July 1, 2006, and before July 1, 2008, 6.8 percent on the unpaid principal balance of the loan.
(ii) For a loan for which the first disbursement is made on or after July 1, 2008, and before July 1, 2009, 6.0 percent on the unpaid principal balance of the loan.
(iii) For a loan for which the first disbursement is made on or after July 1, 2009, and before July 1, 2010, 5.6 percent on the unpaid principal balance of the loan.
(iv) For a loan for which the first disbursement is made on or after July 1, 2010, and before July 1, 2011, 4.5 percent on the unpaid principal balance of the loan.
(v) For a loan for which the first disbursement is made on or after July 1, 2011, and before July 1, 2012, 3.4 percent on the unpaid principal balance of the loan.
Notwithstanding any other provision of this part 1 with respect to loans for which the first disbursement of principal is made before July 1, 2012,,2 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.
Prior to publishing regulations proposing repayment incentives with respect to loans for which the first disbursement of principal is made before July 1, 2012, 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 authorizing committees not less than 60 days prior to the publication of regulations proposing such reductions.
Notwithstanding any other provision of this part, the Secretary is prohibited from authorizing or providing any repayment incentive not otherwise authorized under this part to encourage on-time repayment of a loan under this part for which the first disbursement of principal is made on or after July 1, 2012, including any reduction in the interest or origination fee rate paid by a borrower of such a loan, except that the Secretary may provide for an interest rate reduction for a borrower who agrees to have payments on such a loan automatically electronically debited from a bank account.
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.
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.
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.
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)(iv) 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;
(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 made on behalf of a dependent student; and
(E) beginning on July 1, 2009, an income-based repayment plan that enables borrowers who have a partial financial hardship to make a lower monthly payment in accordance with section 1098e of this title, except that the plan described in this subparagraph shall not be available to the borrower of a Federal Direct PLUS Loan made on behalf of a dependent student or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan under section 1078–2 of this title made on behalf of a dependent student.
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).
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.
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).
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.
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.
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.
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.
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.
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.
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.
In calculating the extended period of time for which an income contingent repayment plan under this subsection may be in effect for a borrower, the Secretary shall include all time periods during which a borrower of loans under part B, part C, or part D—
(A) is not in default on any loan that is included in the income contingent repayment plan; and
(B)(i) is in deferment due to an economic hardship described in section 1085(o) of this title;
(ii) makes monthly payments under paragraph (1) or (6) of section 1098e(b) of this title;
(iii) makes monthly payments of not less than the monthly amount calculated under section 1078(b)(9)(A)(i) of this title or subsection (d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in section 1098e(b)(1) of this title;
(iv) makes payments of not less than the payments required under a standard repayment plan under section 1078(b)(9)(A)(i) of this title or subsection (d)(1)(A) with a repayment period of 10 years; or
(v) makes payments under an income contingent repayment plan under subsection (d)(1)(D).
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).
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) 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,
and for the 180-day period following the demobilization date for the service described in clause (i) or (ii); 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.
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.
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.
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, including any loan made under part B and first disbursed before July 1, 2010. 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.
Notwithstanding any other provision of State or Federal law, the Secretary shall specify in regulations 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.
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.
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.
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.
(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 1 an institution may maintain loan funds under this part in the same account as other Federal student financial assistance.
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.
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.
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.
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.
The Secretary shall cancel the balance of interest and principal due, in accordance with paragraph (2), on any eligible Federal Direct Loan not in default for a borrower who—
(A) has made 120 monthly payments on the eligible Federal Direct Loan after October 1, 2007, pursuant to any one or a combination of the following—
(i) payments under an income-based repayment plan under section 1098e of this title;
(ii) payments under a standard repayment plan under subsection (d)(1)(A), based on a 10-year repayment period;
(iii) monthly payments under a repayment plan under subsection (d)(1) or (g) of not less than the monthly amount calculated under subsection (d)(1)(A), based on a 10-year repayment period; or
(iv) payments under an income contingent repayment plan under subsection (d)(1)(D); and
(B)(i) is employed in a public service job at the time of such forgiveness; and
(ii) has been employed in a public service job during the period in which the borrower makes each of the 120 payments described in subparagraph (A).
After the conclusion of the employment period described in paragraph (1), the Secretary shall cancel the obligation to repay the balance of principal and interest due as of the time of such cancellation, on the eligible Federal Direct Loans made to the borrower under this part.
In this subsection:
The term “eligible Federal Direct Loan” means a Federal Direct Stafford Loan, Federal Direct PLUS Loan, or Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan.
The term “public service job” means—
(i) a full-time job in emergency management, government (excluding time served as a member of Congress), military service, public safety, law enforcement, public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations, as such terms are defined by the Bureau of Labor Statistics), public education, social work in a public child or family service agency, public interest law services (including prosecution or public defense or legal advocacy on behalf of low-income communities at a nonprofit organization), early childhood education (including licensed or regulated childcare, Head Start, and State funded prekindergarten), public service for individuals with disabilities, public service for the elderly, public library sciences, school-based library sciences and other school-based services, or at an organization that is described in section 501(c)(3) of title 26 and exempt from taxation under section 501(a) of such title; or
(ii) teaching as a full-time faculty member at a Tribal College or University as defined in section 1059c(b) of this title and other faculty teaching in high-needs subject areas or areas of shortage (including nurse faculty, foreign language faculty, and part-time faculty at community colleges), as determined by the Secretary.
No borrower may, for the same service, receive a reduction of loan obligations under both this subsection and section 1078–10, 1078–11, 1078–12, or 1087j of this title.
The Secretary shall take such steps as may be necessary to ensure that monthly Federal Direct Loan statements and other publications of the Department do not contain more than four digits of the Social Security number of any individual.
Notwithstanding any other provision of this part and in accordance with paragraphs (2) and (4), interest shall not accrue for an eligible military borrower on a loan made under this part for which the first disbursement is made on or after October 1, 2008.
In the case of any consolidation loan made under this part that is disbursed on or after October 1, 2008, interest shall not accrue pursuant to this subsection only on such portion of such loan as was used to repay a loan made under this part for which the first disbursement is made on or after October 1, 2008.
In this subsection, the term “eligible military borrower” means an individual who—
(A)(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; and
(B) is serving in an area of hostilities in which service qualifies for special pay under section 310 of title 37.
An individual who qualifies as an eligible military borrower under this subsection may receive the benefit of this subsection for not more than 60 months.
Each institution of higher education with which the Secretary has an agreement under section 1087c of this title, and each contractor with which the Secretary has a contract under section 1087f of this title, shall, with respect to loans under this part and in accordance with such regulations as the Secretary shall prescribe, comply with each of the requirements under section 1083 of this title that apply to a lender with respect to a loan under part B.
(Pub. L. 89–329, title IV, §455, as added Pub. L. 99–498, title IV, §404, Oct. 17, 1986, 100 Stat. 1439; amended Pub. L. 102–325, title IV, §451, July 23, 1992, 106 Stat. 572; Pub. L. 103–66, title IV, §4021, Aug. 10, 1993, 107 Stat. 346; Pub. L. 103–382, title III, §359, Oct. 20, 1994, 108 Stat. 3968; Pub. L. 105–178, title VIII, §8301(c), June 9, 1998, 112 Stat. 498; Pub. L. 105–244, title IV, §§401(g)(6), 452(a)(1), (b), (c), Oct. 7, 1998, 112 Stat. 1652, 1715–1717; Pub. L. 106–554, §1(a)(1) [title III, §318(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–49; Pub. L. 107–139, §1(b), (c), Feb. 8, 2002, 116 Stat. 9; Pub. L. 107–314, div. A, title VI, §651(c), Dec. 2, 2002, 116 Stat. 2580; Pub. L. 109–171, title VIII, §§8007(b), 8008(b), (c)(2), (3), 8009(d), Feb. 8, 2006, 120 Stat. 160, 162–164; Pub. L. 110–84, title II, §§201(b), 202(b), 203(b)(3), 205, title IV, §401, Sept. 27, 2007, 121 Stat. 791, 795, 800; Pub. L. 110–315, title I, §103(b)(8), title IV, §§425(b)(3), 451, Aug. 14, 2008, 122 Stat. 3089, 3234, 3261; Pub. L. 111–39, title IV, §404(b)(2), July 1, 2009, 123 Stat. 1946; Pub. L. 111–152, title II, §2211(a), Mar. 30, 2010, 124 Stat. 1078; Pub. L. 112–25, title V, §§502, 503, Aug. 2, 2011, 125 Stat. 266.)
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.
2011—Subsec. (a)(3). Pub. L. 112–25, §502, added par. (3).
Subsec. (b)(8)(A). Pub. L. 112–25, §503(1), substituted “Incentives for loans disbursed before July 1, 2012” for “In general” in heading and inserted “with respect to loans for which the first disbursement of principal is made before July 1, 2012,” after “of this part” in text.
Subsec. (b)(8)(B). Pub. L. 112–25, §503(2), inserted “with respect to loans for which the first disbursement of principal is made before July 1, 2012” after “repayment incentives”.
Subsec. (b)(8)(C). Pub. L. 112–25, §503(3), added subpar. (C).
2010—Subsec. (a)(1). Pub. L. 111–152, §2211(a)(1), inserted “, and first disbursed on June 30, 2010,” before “under sections 1078”.
Subsec. (g). Pub. L. 111–152, §2211(a)(2), inserted “, including any loan made under part B and first disbursed before July 1, 2010” after “section 1078–3(a)(4) of this title” and struck out at end “The Secretary, upon application for such a loan, shall comply with the requirements applicable to a lender under section 1078–3(b)(1)(G) of this title.”
2009—Subsec. (d)(1)(C). Pub. L. 111–39, §404(b)(2)(A), substituted “1078(b)(9)(A)(iv)” for “1078(b)(9)(A)(v)”.
Subsec. (h). Pub. L. 111–39, §404(b)(2)(B), struck out “(except as authorized under section 1087g(a)(1) of this title)” after “regulations”.
Subsec. (k)(1)(B). Pub. L. 111–39, §404(b)(2)(C), struck out “, or in a notice under section 1087g(a)(1) of this title,” after “regulations of the Secretary”.
2008—Subsec. (b)(8)(B). Pub. L. 110–315, §103(b)(8), substituted “authorizing committees” for “Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives”.
Subsec. (d)(1)(E). Pub. L. 110–315, §451(a), added subpar. (E).
Subsec. (g). Pub. L. 110–315, §425(b)(3), substituted “section 1078–3(b)(1)(G)” for “section 1078–3(b)(1)(F)”.
Subsec. (m)(3)(B). Pub. L. 110–315, §451(b)(1), amended subpar. (B) generally. Prior to amendment, text read as follows: “The term ‘public service job’ means—
“(i) a full-time job in emergency management, government, military service, public safety, law enforcement, public health, public education (including early childhood education), social work in a public child or family service agency, public interest law services (including prosecution or public defense or legal advocacy in low-income communities at a nonprofit organization), public child care, public service for individuals with disabilities, public service for the elderly, public library sciences, school-based library sciences and other school-based services, or at an organization that is described in section 501(c)(3) of title 26 and exempt from taxation under section 501(a) of such title; or
“(ii) teaching as a full-time faculty member at a Tribal College or University as defined in section 1059c(b) of this title and other faculty teaching in high-needs areas, as determined by the Secretary.”
Subsec. (m)(4). Pub. L. 110–315, §451(b)(2), added par. (4).
Subsec. (n). Pub. L. 110–315, §451(c), added subsec. (n).
Subsec. (o). Pub. L. 110–315, §451(d), added subsec. (o).
Subsec. (p). Pub. L. 110–315, §451(e), added subsec. (p).
2007—Subsec. (b)(7)(D). Pub. L. 110–84, §201(b), added subpar. (D).
Subsec. (d)(1)(D). Pub. L. 110–84, §203(b)(3), inserted “made on behalf of a dependent student” after “PLUS loan”.
Subsec. (e)(7). Pub. L. 110–84, §205, added par. (7).
Subsec. (f)(2)(C). Pub. L. 110–84, §202(b), struck out “not in excess of 3 years” before “during” in introductory provisions, substituted comma for “; or” at end of cl. (ii), and inserted concluding provisions.
Subsec. (m). Pub. L. 110–84, §401, added subsec. (m).
2006—Subsec. (a)(1). Pub. L. 109–171, §8009(d)(1), inserted “1078–3,” after “1078–2,”.
Subsec. (a)(2)(C), (D). Pub. L. 109–171, §8009(d)(2), added subpar. (C) and redesignated former subpar. (C) as (D).
Subsec. (b)(8)(A). Pub. L. 109–171, §8008(c)(3), inserted “or origination fee” after “reductions in the interest rate”.
Subsec. (c). Pub. L. 109–171, §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, §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, §8007(b), added subpar. (C) and redesignated former subpar. (C) as (D).
Subsec. (g). Pub. L. 109–171, §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 “
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, §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, §452(a)(1), added par. (6) relating to interest rate provision for new loans.
Pub. L. 105–178, §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, §452(b), added par. (7).
Subsec. (g). Pub. L. 105–244, §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, §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.
Pub. L. 111–152, title II, §2211(b), Mar. 30, 2010, 124 Stat. 1078, provided that: “The amendment made by subsection (a)(1) [amending this section] shall apply with respect to loans first disbursed under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) on or after July 1, 2010.”
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Amendment by sections 201(b), 202(b), 205, and 401 of Pub. L. 110–84 effective Oct. 1, 2007, see section 1(c) of Pub. L. 110–84, set out as a note under section 1070a of this title.
Amendment by section 203(b)(3) of Pub. L. 110–84 effective July 1, 2009, see section 203(c)(1) of Pub. L. 110–84, set out as a note under section 1078–3 of this title.
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 all loans under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq., 42 U.S.C. 2751 et seq.), see section 8007(f) of Pub. L. 109–171, set out as a note under section 1078 of this title.
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.
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, §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.”
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.
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.
Pub. L. 105–244, title IV, §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].”
1 So in original. Probably should be followed by a comma.
2 So in original. The second comma probably should not appear.
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.
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.
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.
The Secretary shall contract with each eligible not-for-profit servicer to service loans originated under this part, if the servicer—
(I) meets the standards for servicing Federal assets that apply to contracts awarded pursuant to paragraph (1); and
(II) has the capacity to service the applicable loan volume allocation described in subparagraph (B).
The Secretary shall establish a separate pricing tier for each of the first 100,000 borrower loan accounts at a competitive market rate.
An eligible not-for-profit servicer shall no longer be eligible for a contract under this paragraph after July 1, 2014, if—
(I) the servicer has not been awarded such a contract before that date; or
(II) the servicer's contract was terminated, and the servicer had not reapplied for, and been awarded, a contract under this paragraph.
The Secretary shall (except as provided in clause (ii)) allocate to an eligible not-for-profit servicer, subject to the contract of such servicer described in subparagraph (A), the servicing rights for the loan accounts of 100,000 borrowers (including borrowers who borrowed loans in a prior year that were serviced by the servicer).
The Secretary may reallocate, increase, reduce, or terminate an eligible not-for-profit servicer's allocation of servicing rights under clause (i) based on the performance of such servicer, on the same terms as loan allocations provided by contracts awarded pursuant to paragraph (1).
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 or purchased under this part;
(3) the establishment and operation of 1 or more data systems for the maintenance of records on all loans made or purchased 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.
In this section:
The term “eligible not-for-profit servicer” means an entity—
(A) that is not owned or controlled in whole or in part by—
(i) a for-profit entity; or
(ii) a nonprofit entity having its principal place of business in another State; and
(B) that—
(i) as of July 1, 2009—
(I) meets the definition of an eligible not-for-profit holder under section 1085(p) of this title, except that such term does not include eligible lenders described in paragraph (1)(D) of such section; and
(II) was performing, or had entered into a contract with a third party servicer (as such term is defined in section 1088(c) of this title) who was performing, student loan servicing functions for loans made under part B of this subchapter;
(ii) notwithstanding clause (i), as of July 1, 2009—
(I) is the sole beneficial owner of a loan for which the special allowance rate is calculated under section 1087–1(b)(2)(I)(vi)(II) of this title because the loan is held by an eligible lender trustee that is an eligible not-for-profit holder as defined under section 1085(p)(1)(D) of this title; and
(II) was performing, or had entered into a contract with a third party servicer (as such term is defined in section 1088(c) of this title) who was performing, student loan servicing functions for loans made under part B of this subchapter; or
(iii) is an affiliated entity of an eligible not-for-profit servicer described in clause (i) or (ii) that—
(I) directly employs, or will directly employ (on or before the date the entity begins servicing loans under a contract awarded by the Secretary pursuant to subsection (a)(3)(A)),1 the majority of individuals who perform borrower-specific student loan servicing functions; and
(II) as of July 1, 2009, was performing, or had entered into a contract with a third party servicer (as such term is defined in section 1088(c) of this title) who was performing, student loan servicing functions for loans made under part B of this subchapter.
For the purposes of paragraph (1), the term “affiliated entity”—
(A) means an entity contracted to perform services for an eligible not-for-profit servicer that—
(i) is a nonprofit entity or is wholly owned by a nonprofit entity; and
(ii) is not owned or controlled, in whole or in part, by—
(I) a for-profit entity; or
(II) an entity having its principal place of business in another State; and
(B) may include an affiliated entity that is established by an eligible not-for-profit servicer after March 30, 2010, if such affiliated entity is otherwise described in paragraph (1)(B)(iii)(I) and subparagraph (A) of this paragraph.
(Pub. L. 89–329, title IV, §456, as added Pub. L. 102–325, title IV, §451, July 23, 1992, 106 Stat. 572; amended Pub. L. 103–66, title IV, §4021, Aug. 10, 1993, 107 Stat. 352; Pub. L. 105–244, title IV, §453, Oct. 7, 1998, 112 Stat. 1717; Pub. L. 110–227, §7(c), May 7, 2008, 122 Stat. 747; Pub. L. 111–152, title II, §2212(a), Mar. 30, 2010, 124 Stat. 1078.)
2010—Subsec. (a)(4). Pub. L. 111–152, §2212(a)(1)(A), added par. (4).
Subsec. (c). Pub. L. 111–152, §2212(a)(2), added subsec. (c).
2008—Subsec. (b)(2), (3). Pub. L. 110–227 inserted “or purchased” after “loans made”.
1998—Subsec. (b)(3). Pub. L. 105–244, §453(1), inserted “and” after semicolon.
Subsec. (b)(4), (5). Pub. L. 105–244, §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.
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.
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.
1 So in original. Probably should be “subsection (a)(4)(A)),”.
Section, Pub. L. 89–329, title IV, §457, as added Pub. L. 102–325, title IV, §451, July 23, 1992, 106 Stat. 572; amended Pub. L. 103–66, title IV, §4021, Aug. 10, 1993, 107 Stat. 352, related to regulatory activities associated with implementation of the first year of the direct student loan program authorized by part C, including establishment of closing date for applications not later than Oct. 1, 1993, and publication of list of selected institutions not later than Jan. 1, 1994.
Repeal effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as an Effective Date of 2009 Amendment note under section 1001 of this title.
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.
For fiscal years 2010 through 2019, there shall be available to the Secretary, in addition to any other amounts appropriated to carry out this paragraph and out of any money in the Treasury not otherwise appropriated, funds to be obligated for administrative costs of servicing contracts with eligible not-for-profit servicers as described in section 1087f of this title.
For each of the fiscal years 2007 through 2014, 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.
For each of the fiscal years 2007 through 2014, 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).
Account maintenance fees under paragraph (3) 1 shall be paid quarterly and deposited in the Agency Operating Fund established under section 1072b of this title.
The Secretary shall provide institutions of higher education participating, or seeking to participate, in the loan programs under this part with technical assistance in establishing and administering such programs.
There are authorized to be appropriated, and there are appropriated, to carry out this paragraph (in addition to any other amounts appropriated to carry out this paragraph and out of any money in the Treasury not otherwise appropriated), $50,000,000 for fiscal year 2010.
In this paragraph, the term “assistance” means the provision of technical support, training, materials, technical assistance, and financial assistance.
The Secretary shall provide payments to loan servicers for retaining jobs at locations in the United States where such servicers were operating under part B on January 1, 2010.
There are authorized to be appropriated, and there are appropriated, to carry out this paragraph (in addition to any other amounts appropriated to carry out this paragraph and out of any money in the Treasury not otherwise appropriated), $25,000,000 for each of the fiscal years 2010 and 2011.
The Secretary may carry over funds made available under this section to a subsequent fiscal year.
Account maintenance fees payable to guaranty agencies under subsection (a)(4) shall be calculated on the basis of 0.06 percent of the original principal amount of outstanding loans on which insurance was issued under part B.
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.
(Pub. L. 89–329, title IV, §458, as added Pub. L. 102–325, title IV, §451, July 23, 1992, 106 Stat. 573; amended Pub. L. 103–66, title IV, §4021, Aug. 10, 1993, 107 Stat. 353; Pub. L. 104–19, title I, §601, July 27, 1995, 109 Stat. 219; Pub. L. 105–33, title VI, §6103, Aug. 5, 1997, 111 Stat. 652; Pub. L. 105–78, title VI, §609(l), Nov. 13, 1997, 111 Stat. 1524; Pub. L. 105–244, title IV, §454, Oct. 7, 1998, 112 Stat. 1717; Pub. L. 109–171, title VIII, §8015, Feb. 8, 2006, 120 Stat. 172; Pub. L. 109–292, §5, Sept. 30, 2006, 120 Stat. 1341; Pub. L. 110–84, title III, §306, Sept. 27, 2007, 121 Stat. 800; Pub. L. 110–315, title IV, §452, Aug. 14, 2008, 122 Stat. 3263; Pub. L. 111–152, title II, §2212(b), Mar. 30, 2010, 124 Stat. 1080.)
Paragraph (3), referred to in subsec. (a)(5), was redesignated par. (4) by Pub. L. 111–152, §2212(b)(1)(B).
2010—Subsec. (a)(2) to (8). Pub. L. 111–152, §2212(b)(1), added pars. (2), (6), and (7) and redesignated former pars. (2), (3), (4), and (5) as (3), (4), (5), and (8), respectively.
Subsec. (b). Pub. L. 111–152, §2212(b)(2), substituted “subsection (a)(4)” for “subsection (a)(3)”.
2008—Subsec. (a)(2). Pub. L. 110–315, §452(1), substituted “2014” for “2011” in heading and text.
Subsec. (a)(3). Pub. L. 110–315, §452(2), substituted “2014” for “2011”.
2007—Subsec. (b). Pub. L. 110–84 substituted “0.06 percent” for “0.10 percent”.
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, §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, §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, §454(5), added subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 105–244, §454(4), redesignated subsec. (c) as (d).
Pub. L. 105–244, §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.
Amendment by Pub. L. 110–84 effective Oct. 1, 2007, see section 1(c) of Pub. L. 110–84, set out as a note under section 1070a of this title.
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. 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.
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.
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).”
Pub. L. 104–208, div. A, title I, §101(e) [title III, §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, §101(d) [title III, §305], Apr. 26, 1996, 110 Stat. 1321–211, 1321–236; renumbered title I, Pub. L. 104–140, §1(a), May 2, 1996, 110 Stat. 1327.
1 See References in Text note below.
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.
(Pub. L. 89–329, title IV, §459, as added Pub. L. 105–244, title IV, §455, Oct. 7, 1998, 112 Stat. 1718.)
A prior section 1087i, Pub. L. 89–329, title IV, §459, as added Pub. L. 102–325, title IV, §451, July 23, 1992, 106 Stat. 575, which related to schedule of regulatory activities by Secretary under Federal direct loan demonstration program, was omitted in the general amendment of this part by Pub. L. 103–66.
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.
Upon a determination by the Secretary that there is an inadequate availability of loan capital to meet the demand for loans under sections 1078, 1078–2, or 1078–8 of this title, whether as a result of inadequate liquidity for such loans or for other reasons, the Secretary, in consultation with the Secretary of the Treasury, is authorized to purchase, or enter into forward commitments to purchase, from any eligible lender, as defined by section 1085(d)(1) of this title, loans first disbursed under sections 1078, 1078–2, or 1078–8 of this title on or after October 1, 2003, and before July 1, 2010, on such terms as the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget jointly determine are in the best interest of the United States, except that any purchase under this section shall not result in any net cost to the Federal Government (including the cost of servicing the loans purchased), as determined jointly by the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget.
The Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget, shall jointly publish a notice in the Federal Register prior to any purchase of loans under paragraph (1) that—
(A) establishes the terms and conditions governing the purchases authorized by paragraph (1);
(B) includes an outline of the methodology and factors that the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget, will jointly consider in evaluating the price at which to purchase loans made under section 1078, 1078–2, or 1078–8 of this title; and
(C) describes how the use of such methodology and consideration of such factors used to determine purchase price will ensure that loan purchases do not result in any net cost to the Federal Government (including the cost of servicing the loans purchased).
In addition to the authority described in paragraph (1), the Secretary, in consultation with the Secretary of the Treasury, is authorized to purchase, or enter into forward commitments to purchase, from any eligible lender (as defined in section 1085(d)(1) of this title), loans that such lender purchased under section 1078–6 of this title on or after October 1, 2003, and before July 1, 2010, and that are not in default, on such terms as the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget jointly determine are in the best interest of the United States, except that any purchase under this paragraph shall not result in any net cost to the Federal Government (including the cost of servicing the loans purchased), as determined jointly by the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget.
The Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget shall jointly publish a notice in the Federal Register prior to any purchase of loans under this paragraph that—
(i) establishes the terms and conditions governing the purchases authorized by this paragraph;
(ii) includes an outline of the methodology and factors that the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget will jointly consider in evaluating the price at which to purchase loans rehabilitated pursuant to section 1078–6(a) of this title; and
(iii) describes how the use of such methodology and consideration of such factors used to determine purchase price will ensure that loan purchases do not result in any net cost to the Federal Government (including the cost of servicing the loans purchased).
The Secretary shall require, as a condition of any purchase under subsection (a), that the funds paid by the Secretary to any eligible lender under this section be used—
(1) to ensure continued participation of such lender in the Federal student loan programs authorized under part B of this subchapter; and
(2)(A) in the case of loans purchased pursuant to subsection (a)(1), to originate new Federal loans to students, as authorized under part B of this subchapter; or
(B) in the case of loans purchased pursuant to subsection (a)(3), to originate such new Federal loans to students, or to purchase loans in accordance with section 1078–6(a) of this title.
The Secretary may, if agreed upon by an eligible lender selling loans under this section, contract with such lender for the servicing of the loans purchased, provided that—
(1) the cost of such servicing arrangement does not exceed the cost the Federal Government would otherwise incur for the servicing of loans purchased, as determined under subsection (a); and
(2) such servicing arrangement is in the best interest of the borrowers whose loans are purchased.
Notwithstanding any other provision of this chapter and part C of subchapter I of chapter 34 of title 42, beginning on the date on which the Secretary purchases a loan under this section—
(1) the guaranty agency that insured such loan shall cease to have any obligations, responsibilities, or rights (including rights to any payment) under this chapter and part C of subchapter I of chapter 34 of title 42 for any activity related to the administration of such loan that is carried out or required to be carried out on or after the date of such purchase; and
(2) the insurance issued by such agency pursuant to section 1078(b) of this title for such loan shall cease to be effective with respect to any default on such loan that occurs on or after the date of such purchase.
The Secretary shall prepare, transmit to the authorizing committees, and make available to the public, the following:
Not later than 60 days after the end of each quarter during the period beginning July 1, 2008, and ending September 30, 2010, a quarterly report on—
(i) the number of loans the Secretary has agreed to purchase, or has purchased, using the authority provided under this section, and the total amount of outstanding principal and accrued interest of such loans, during such period; and
(ii) the number of loans in which the Secretary has purchased a participation interest, and the total amount of outstanding principal and accrued interest of such loans, during such period.
For each quarterly report, the information described in clauses (i) and (ii) of subparagraph (A) shall be disaggregated by lender and, for each lender, by category of institution (using the categories described in section 1015a(d) of this title) and type of loan.
Not later than February 15, 2011, an estimate of the costs associated with the program of purchasing loans described in paragraph (1)(A)(i) during the period beginning July 1, 2008, and ending September 30, 2010, and an estimate of the costs associated with the program of purchasing a participation interest in loans described in paragraph (1)(A)(ii) during such period. Each such estimate shall—
(A) contain the same level of detail, and be reported in a similar manner, as the budget estimates provided for the loan program under part B and the direct student loan program under this part in the President's annual budget submission to Congress, except that current and future administrative costs shall also be reported;
(B) include an estimate of the gross and net outlays that have been, or will be, incurred by the Federal Government (including subsidy and administrative costs, and any payments made by the Department to lenders, trusts, or other entities related to such activities) in purchasing such loans or purchasing a participation interest in such loans during such period (as applicable); and
(C) include a comparison of—
(i) the average amount of the gross and net outlays (including costs and payments) described in subparagraph (B) for each $100 of loans purchased or for which a participation interest was purchased (as applicable) during such period, disaggregated by type of loan; with
(ii) the average amount of such gross and net outlays (including costs and payments) to the Federal Government for each $100 of comparable loans made under this part and part B during such period, disaggregated by part and by type of loan.
Not later than February 15 of the fiscal year following each of the fiscal years 2008, 2009, 2010, and 2011, an annual estimate of the costs associated with the program of purchasing loans described in paragraph (1)(A)(i), and an annual estimate of the costs associated with the program of purchasing a participation interest in loans described in paragraph (1)(A)(ii), that includes the information described in paragraph (2) for such fiscal year.
The Secretary's authority to purchase loans under this section shall expire on July 1, 2010.
(Pub. L. 89–329, title IV, §459A, as added Pub. L. 110–227, §7(b), May 7, 2008, 122 Stat. 746; amended Pub. L. 110–315, title IV, §453, Aug. 14, 2008, 122 Stat. 3263; Pub. L. 110–350, §1, Oct. 7, 2008, 122 Stat. 3947; Pub. L. 111–39, title IV, §404(a), July 1, 2009, 123 Stat. 1945.)
2009—Subsec. (a)(2). Pub. L. 111–39, §404(a)(1)(A), substituted “purchase of loans under paragraph (1)” for “purchase of loans under this section” in introductory provisions.
Subsec. (a)(3). Pub. L. 111–39, §404(a)(1)(B), added par. (3).
Subsec. (b). Pub. L. 111–39, §404(a)(2), amended subsec. (b) generally. Prior to amendment, text read as follows: “The Secretary shall require, as a condition of any purchase under subsection (a), that the funds paid by the Secretary to any eligible lender under this section shall be used: (1) to ensure continued participation of such lender in the Federal student loan programs authorized under part B of this subchapter; and (2) to originate new Federal loans to students, as authorized under part B of this subchapter.”
2008—Subsec. (a)(1). Pub. L. 110–350, §1(1), substituted “July 1, 2010” for “July 1, 2009”.
Subsecs. (d), (e). Pub. L. 110–315, §453(2), added subsecs. (d) and (e). Former subsec. (d) redesignated (f).
Subsec. (e)(1)(A). Pub. L. 110–350, §1(2)(A), substituted “September 30, 2010” for “September 30, 2009” in introductory provisions.
Subsec. (e)(2). Pub. L. 110–350, §1(2)(A), (B), substituted “February 15, 2011” for “February 15, 2010” and “September 30, 2010” for “September 30, 2009” in introductory provisions.
Subsec. (e)(3). Pub. L. 110–350, §1(2)(C), substituted “2009, 2010, and 2011” for “2009, and 2010”.
Subsec. (f). Pub. L. 110–350, §1(1), substituted “July 1, 2010” for “July 1, 2009”.
Pub. L. 110–315, §453(1), redesignated subsec. (d) as (f).
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
A borrower who has 1 or more loans in 2 or more of the categories described in paragraph (2), and who has not yet entered repayment on 1 or more of those loans in any of the categories, may consolidate all of the loans of the borrower that are described in paragraph (2) into a Federal Direct Consolidation Loan during the period described in paragraph (3).
The categories of loans that may be consolidated under paragraph (1) are—
(A) loans made under this part;
(B) loans purchased by the Secretary pursuant to section 1087i–1 of this title; and
(C) loans made under part B that are held by an eligible lender, as such term is defined in section 1085(d) of this title.
The Secretary may make a Federal Direct Consolidation Loan under this section to a borrower whose application for such Federal Direct Consolidation Loan is received on or after July 1, 2010, and before July 1, 2011.
A Federal Direct Consolidation Loan made under this section shall have the same terms and conditions as a Federal Direct Consolidation Loan made under section 1087e(g) of this title, except that—
(1) in determining the applicable rate of interest on the Federal Direct Consolidation Loan made under this section (other than on a Federal Direct Consolidation Loan described in paragraph (2)), section 1077a(l)(3) of this title shall be applied without rounding the weighted average of the interest rate on the loans consolidated to the nearest higher one-eighth of 1 percent as described in subparagraph (A) of section 1077a(l)(3) of this title; and
(2) if a Federal Direct Consolidation Loan made under this section that repays a loan which is subject to an interest rate determined under section 1077a(g)(2), (j)(2), or (k)(2) of this title, then the interest rate for such Federal Direct Consolidation Loan shall be calculated—
(A) by using the applicable rate of interest described in section 1077a(g)(2), (j)(2), or (k)(2) of this title, respectively; and
(B) in accordance with section 1077a(l)(3) of this title.
(Pub. L. 89–329, title IV, §459B, as added Pub. L. 111–152, title II, §2206(b), Mar. 30, 2010, 124 Stat. 1075.)
It is the purpose of this section to encourage individuals to enter and continue in the teaching profession.
The Secretary shall carry out a program of canceling the obligation to repay a qualified loan amount in accordance with subsection (c) 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—
(1) has been employed as a full-time teacher for 5 consecutive complete school years—
(A) in a school or location that qualifies under section 1087ee(a)(2)(A) of this title for loan cancellation for Perkins loan recipients who teach in such schools or locations; and
(B) 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
(2) is not in default on a loan for which the borrower seeks forgiveness.
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). No borrower may receive a reduction of loan obligations under both this section and section 1078–10 of this title.
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), as determined in accordance with regulations prescribed by the Secretary.
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); 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);
(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, or, in the case of a teacher who is employed by an educational service agency, as certified by the chief administrative officer of such agency, 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.
The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.
Nothing in this section shall be construed to authorize any refunding of any canceled loan.
If the list of schools in which a teacher may perform service pursuant to subsection (b) 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.
Any teacher who performs service in a school that—
(A) meets the requirements of subsection (b)(1)(A) 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).
No borrower may, for the same voluntary service, receive a benefit under both this section and—
(A) section 1078–11 of this title;
(B) section 1087e(m) of this title; or
(C) subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.).
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.
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.
(Pub. L. 89–329, title IV, §460, as added Pub. L. 105–244, title IV, §456, Oct. 7, 1998, 112 Stat. 1719; amended Pub. L. 108–409, §3(a)(1)(B), (b)(2), Oct. 30, 2004, 118 Stat. 2300, 2301; Pub. L. 109–171, title VIII, §8013(e)(2), Feb. 8, 2006, 120 Stat. 167; Pub. L. 110–315, title IV, §454, Aug. 14, 2008, 122 Stat. 3265; Pub. L. 111–39, title IV, §404(b)(4), July 1, 2009, 123 Stat. 1946.)
The National and Community Service Act of 1990, referred to in subsec. (g)(2)(D), is Pub. L. 101–610, Nov. 16, 1990, 104 Stat. 3127. Subtitle D of title I of the Act is classified generally to division D of subchapter I (§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.
A prior section 1087j, Pub. L. 89–329, title IV, §459A, as added Pub. L. 102–325, title IV, §451, July 23, 1992, 106 Stat. 575, which related to funds for administrative expenses under Federal direct loan demonstration program, was omitted in the general amendment of this part by Pub. L. 103–66.
2009—Subsec. (c)(1). Pub. L. 111–39, §404(b)(4)(A), inserted at end “No borrower may receive a reduction of loan obligations under both this section and section 1078–10 of this title.”
Subsec. (g)(2). Pub. L. 111–39, §404(b)(4)(B), redesignated subpars. (B) to (D) as (A) to (C), respectively, substituted “12601” for “12571” in subpar. (C), and struck out former subpar. (A) which read as follows: “section 1078–10 of this title;”.
2008—Subsec. (b). Pub. L. 110–315, §454(c), struck out “(1) In general” before “The Secretary shall”, redesignated subpars. (A) and (B) of former par. (1) as pars. (1) and (2), respectively, and cls. (i) and (ii) of former subpar. (A) as subpars. (A) and (B), respectively, of par. (1), realigned margins, and struck out par. (2). Prior to amendment, text of par. (2) read as follows: “No borrower may obtain a reduction of loan obligations under both this section and section 1078–10 of this title.”
Subsec. (b)(1)(A)(i). Pub. L. 110–315, §454(a)(1), inserted “or location” after “a school” and “or locations” after “such schools”.
Subsec. (c)(1). Pub. L. 110–315, §454(d)(1), substituted “subsection (b)(1)” for “subsection (b)(1)(A)”.
Subsec. (c)(3)(A)(i), (B)(i). Pub. L. 110–315, §454(d)(2), substituted “subsection (b)” for “subsection (b)(1)”.
Subsec. (c)(3)(B)(iii). Pub. L. 110–315, §454(a)(2), inserted “or, in the case of a teacher who is employed by an educational service agency, as certified by the chief administrative officer of such agency,” after “borrower is employed,”.
Subsec. (g)(2). Pub. L. 110–315, §454(b), amended par. (2) generally. Prior to amendment, text read as follows: “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. 12571 et seq.)”.
Subsec. (g)(3). Pub. L. 110–315, §454(d)(3), substituted “subsection (b)(1)(B)” for “subsection (b)(1)(A)(ii)”.
2006—Subsec. (b)(1)(A)(ii). Pub. L. 109–171, §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, §8013(e)(2)(B), added par. (3).
2004—Subsec. (b)(1)(A). Pub. L. 108–409, §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, §3(b)(2), added par. (3).
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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 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.
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.
This part was added as part E of title IV of Pub. L. 89–329 by Pub. L. 92–318, title I, §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, §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.
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”.
(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 $300,000,000 for fiscal year 2009 and for each of the five 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 2015 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, 2015, to continue or complete courses of study.
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.
(Pub. L. 89–329, title IV, §461, as added Pub. L. 99–498, title IV, §405(a), Oct. 17, 1986, 100 Stat. 1439; amended Pub. L. 102–325, title IV, §461(a)(2)–(c), July 23, 1992, 106 Stat. 576; Pub. L. 105–244, title IV, §461, Oct. 7, 1998, 112 Stat. 1720; Pub. L. 110–315, title IV, §461, Aug. 14, 2008, 122 Stat. 3265.)
A prior section 1087aa, Pub. L. 89–329, title IV, §461, as added Pub. L. 92–318, title I, §137(b), June 23, 1972, 86 Stat. 273; amended Pub. L. 94–482, title I, §130(a), (b), Oct. 12, 1976, 90 Stat. 2146; Pub. L. 96–49, §5(d)(1), (2), Aug. 13, 1979, 93 Stat. 352; Pub. L. 96–374, title IV, §441, title XIII, §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.
Another prior section 461 of Pub. L. 89–329 amended former section 403 of this title.
2008—Subsec. (b)(1). Pub. L. 110–315, §461(1), substituted “$300,000,000 for fiscal year 2009 and for each of the five succeeding fiscal years” for “$250,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years”.
Subsec. (b)(2). Pub. L. 110–315, §461(2), substituted “2015” for “2003” in two places.
1998—Subsec. (b)(1). Pub. L. 105–244, §461(1), substituted “1999” for “1993”.
Subsec. (b)(2). Pub. L. 105–244, §461(2), substituted “2003” for “1997” in two places.
1992—Subsec. (a). Pub. L. 102–325, §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, §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.”
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.
(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).
(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.
(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 $600.
(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.
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.
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.
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.
During an appeal under subparagraph (A), the Secretary may permit the institution to continue to participate in a program under this part.
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.
Any funds returned to the Secretary under this paragraph shall be reallocated to institutions of higher education pursuant to subsection (i) of this section.
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.
For award years prior to award year 2000, the applicable maximum cohort default rate is 30 percent.
For award year 2000 and subsequent years, the applicable maximum cohort default rate is 25 percent.
(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.
The Secretary shall, from time to time, set dates before which institutions must file applications for allocations under this part.
(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.
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.
The Secretary shall reallocate the remainder of such returned portions in accordance with regulations of the Secretary.
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.
(Pub. L. 89–329, title IV, §462, as added Pub. L. 99–498, title IV, §405(a), Oct. 17, 1986, 100 Stat. 1440; amended Pub. L. 100–50, §13(a)–(d), June 3, 1987, 101 Stat. 348; Pub. L. 102–325, title IV, §462, July 23, 1992, 106 Stat. 576; Pub. L. 103–208, §2(f)(1)–(4), Dec. 20, 1993, 107 Stat. 2470, 2471; Pub. L. 105–244, title IV, §462(a)(1), (2), (b)–(e), Oct. 7, 1998, 112 Stat. 1720–1723; Pub. L. 110–315, title IV, §462, Aug. 14, 2008, 122 Stat. 3266; Pub. L. 111–39, title IV, §405(1), July 1, 2009, 123 Stat. 1947.)
A prior section 1087bb, Pub. L. 89–329, title IV, §462, as added Pub. L. 92–318, title I, §137(b), June 23, 1972, 86 Stat. 273; amended Pub. L. 96–374, title IV, §448(a), title XIII, §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.
2009—Subsec. (a)(1)(A). Pub. L. 111–39 added subpar. (A) and struck out former subpar. (A), resulting in text identical to that after execution of the amendment by Pub. L. 105–244, §462(a)(1)(A). See 1998 Amendment note below.
2008—Subsec. (c)(4)(D). Pub. L. 110–315 substituted “$600” for “$450”.
1998—Subsec. (a)(1). Pub. L. 105–244, §462(e)(1), inserted “cohort” before “default” in two places in concluding provisions.
Pub. L. 105–244, §462(a)(2)(A)(ii), substituted “subsection (f)” for “subsection (g)” in concluding provisions.
Subsec. (a)(1)(A). Pub. L. 105–244, §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, §462(a)(2)(A)(i), substituted “subsection (e)” for “subsection (f)”.
Subsec. (a)(2)(A), (B). Pub. L. 105–244, §462(a)(1)(B)(i), substituted “1999” for “1985” in introductory provisions.
Subsec. (a)(2)(C)(i). Pub. L. 105–244, §462(a)(1)(B)(ii), substituted “2000” for “1986”.
Subsec. (a)(2)(D). Pub. L. 105–244, §462(e)(1), inserted “cohort” before “default” in two places in concluding provisions.
Pub. L. 105–244, §462(a)(2)(A)(iv), substituted “subsection (f)” for “subsection (g)” in concluding provisions.
Subsec. (a)(2)(D)(ii). Pub. L. 105–244, §462(a)(2)(A)(iii), substituted “subsection (e)” for “subsection (f)”.
Subsec. (b). Pub. L. 105–244, §462(a)(2)(H), redesignated subsec. (c) as (b).
Pub. L. 105–244, §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, §462(e)(2), inserted “cohort” before “default” in two places in concluding provisions.
Subsec. (b)(3). Pub. L. 105–244, §462(e)(2), inserted “cohort” before “default” in two places in concluding provisions.
Subsec. (c). Pub. L. 105–244, §462(a)(2)(H), redesignated subsec. (d) as (c). Former subsec. (c) redesignated (b).
Subsec. (c)(1). Pub. L. 105–244, §462(a)(2)(C), substituted “the remainder” for “three-quarters of the remainder”.
Subsec. (c)(2). Pub. L. 105–244, §462(a)(2)(D), substituted “subsection (f)” for “subsection (g)” in concluding provisions.
Subsec. (c)(3). Pub. L. 105–244, §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, §462(a)(2)(E)(iii), substituted “subsection (f)” for “subsection (g)” in concluding provisions.
Subsec. (c)(3)(A). Pub. L. 105–244, §462(a)(2)(E)(i), substituted “subsection (c)” for “subsection (d)”.
Subsec. (c)(3)(C). Pub. L. 105–244, §462(a)(2)(E)(ii), substituted “subsection (e)” for “subsection (f)”.
Subsec. (d). Pub. L. 105–244, §462(a)(2)(H), redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c).
Subsec. (d)(2). Pub. L. 105–244, §462(e)(3), inserted “cohort” before “default”.
Subsec. (e). Pub. L. 105–244, §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, §462(a)(2)(H), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d).
Subsec. (f). Pub. L. 105–244, §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, §462(a)(2)(H), redesignated subsec. (g) as (f). Former subsec. (f) redesignated (e).
Subsec. (g). Pub. L. 105–244, §462(d)(1), inserted heading and struck out former heading.
Pub. L. 105–244, §462(a)(2)(H), redesignated subsec. (h) as (g). Former subsec. (g) redesignated (f).
Subsec. (g)(1). Pub. L. 105–244, §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, §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, §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, §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, §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, §462(d)(3)(B), redesignated subpar. (G) as (F).
Subsec. (g)(2). Pub. L. 105–244, §462(d)(4), added par. (2).
Pub. L. 105–244, §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, §462(d)(2), redesignated par. (3) as (1).
Subsec. (g)(4). Pub. L. 105–244, §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, §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, §462(a)(2)(H), redesignated subsec. (j) as (i).
Subsec. (j)(1)(B)(i). Pub. L. 105–244, §462(a)(2)(F), substituted “1999” for “1985”.
Subsec. (j)(2)(A)(i). Pub. L. 105–244, §462(a)(2)(G)(i), substituted “subsection (b)(3)” for “paragraph (3) of subsection (c)”.
Subsec. (j)(2)(B). Pub. L. 105–244, §462(a)(2)(G)(ii), substituted “subsection (b)” for “subsection (c)”.
1993—Subsec. (a)(1), (2)(D). Pub. L. 103–208, §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, §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, §2(f)(3), (4), realigned margins.
1992—Subsec. (a)(1)(A). Pub. L. 102–325, §462(a), substituted “allocated to such institution” for “such institution received”.
Subsec. (e). Pub. L. 102–325, §462(b), designated existing provisions as par. (1) and added par. (2).
Subsec. (f). Pub. L. 102–325, §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, §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, §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, §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, §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, §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, §13(c), struck out “; cash on hand” after “collections” in heading.
Subsec. (f). Pub. L. 100–50, §13(d), substituted “subsection (g) of this section” for “paragraph (2)”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 105–244, title IV, §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.
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. 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.
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.
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 allow such institution to refer such note or agreement to the Secretary, without recompense, except that, once every six months, 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 and treated as an additional capital contribution under section 1087bb of this title;
(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, except that nothing in this paragraph shall be construed to permit the Secretary to require the assignment of loans to the Secretary other than as is provided for in paragraphs (4) and (5).
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.
(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 consumer reporting agencies 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 consumer reporting agencies, 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 (5) 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 consumer reporting agency with which the Secretary has such an agreement the information set forth in paragraph (2), and shall disclose promptly to such consumer reporting agency 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 consumer reporting agencies 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 consumer reporting agencies to update the status of information maintained with respect to that borrower.
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.
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.
(Pub. L. 89–329, title IV, §463, as added Pub. L. 99–498, title IV, §405(a), Oct. 17, 1986, 100 Stat. 1444; amended Pub. L. 100–50, §13(e), (f), June 3, 1987, 101 Stat. 349; Pub. L. 102–325, title IV, §463(a), (b), July 23, 1992, 106 Stat. 579; Pub. L. 103–208, §2(f)(5)–(7), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 105–244, title IV, §463, Oct. 7, 1998, 112 Stat. 1724; Pub. L. 110–315, title IV, §§432(b)(5), 463, Aug. 14, 2008, 122 Stat. 3246, 3266; Pub. L. 111–39, title IV, §405(2), July 1, 2009, 123 Stat. 1947.)
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, §463(a)(3), Oct. 7, 1998, 112 Stat. 1724.
A prior section 1087cc, Pub. L. 89–329, title IV, §463, as added Pub. L. 92–318, title I, §137(b), June 23, 1972, 86 Stat. 274; amended Pub. L. 94–482, title I, §130(c), Oct. 12, 1976, 90 Stat. 2146; Pub. L. 96–374, title IV, §§442(b)(1)–(4), 445(a), (b)(1), 447(a), 448(b), title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1439, 1440, 1442, 1443, 1503; Pub. L. 99–272, title XVI, §§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.
2009—Subsec. (c)(2)(A). Pub. L. 111–39, §405(2)(A)(i), realigned margins.
Subsec. (c)(2)(B). Pub. L. 111–39, §405(2)(A)(ii), added subpar. (B) and struck out former subpar. (B), resulting in text identical to that after execution of the amendment by Pub. L. 105–244, §463(b)(2)(C). See 1998 Amendment note below.
Subsec. (c)(3). Pub. L. 111–39, §405(2)(B), substituted “and (5)” for “and (6)” and made technical amendment to reference in original act which appears in text as reference to section 1681c of title 15.
2008—Subsec. (a)(4)(B). Pub. L. 110–315, §463(a), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “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;”.
Subsec. (a)(9). Pub. L. 110–315, §463(b), inserted “, except that nothing in this paragraph shall be construed to permit the Secretary to require the assignment of loans to the Secretary other than as is provided for in paragraphs (4) and (5)” before period.
Subsec. (c). Pub. L. 110–315, §432(b)(5)(A), substituted “consumer reporting agencies” for “credit bureau organizations” in heading.
Subsec. (c)(1). Pub. L. 110–315, §432(b)(5)(B), substituted “consumer reporting agencies” for “credit bureau organizations”.
Subsec. (c)(2). Pub. L. 110–315, §432(b)(5)(C), substituted “such consumer reporting agencies” for “such organizations”.
Subsec. (c)(4)(A). Pub. L. 110–315, §432(b)(5)(D), substituted “consumer reporting agency” for “credit bureau organization” in two places.
Subsec. (c)(5). Pub. L. 110–315, §432(b)(5)(E), substituted “consumer reporting agencies” for “credit bureau organizations” and “such consumer reporting agencies” for “such organizations”.
1998—Subsec. (a)(2)(B). Pub. L. 105–244, §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, §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, §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, §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, §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, §463(b)(2)(C), inserted “the repayment and” after “concerning” the first place appearing and substituted “status of such” for “status of any defaulted”.
Subsec. (c)(2)(C). Pub. L. 105–244, §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, §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, §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, §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, §463(b)(4), added par. (5).
Subsec. (d). Pub. L. 105–244, §463(c), substituted “subsection (a)(9)” for “subsection (a)(10)”.
1993—Subsec. (a)(2)(B)(i)(II). Pub. L. 103–208, §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, §2(f)(6), substituted “shall disclose at least annually” for “shall disclose” in introductory provisions.
Subsecs. (d), (e). Pub. L. 103–208, §2(f)(7), added subsecs. (d) and (e).
1992—Subsec. (a)(2)(B). Pub. L. 102–325, §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, §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, §463(b)(2), added par. (4).
1987—Subsec. (a)(4). Pub. L. 100–50, §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, §13(f), substituted “section 1096 of this title” for “section 1092 of this title”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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. 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. 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.
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.
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.
Each institution of higher education 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 consumer 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.
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.
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.
(Pub. L. 89–329, title IV, §463A, as added Pub. L. 99–498, title IV, §405(a), Oct. 17, 1986, 100 Stat. 1446; amended Pub. L. 100–50, §13(g), (h), June 3, 1987, 101 Stat. 349; Pub. L. 102–325, title IV, §463(c), July 23, 1992, 106 Stat. 579; Pub. L. 103–208, §2(f)(8), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 104–106, div. A, title XV, §1501(e)(4), Feb. 10, 1996, 110 Stat. 501; Pub. L. 110–315, title IV, §432(b)(6), Aug. 14, 2008, 122 Stat. 3246; Pub. L. 111–39, title IV, §405(3), July 1, 2009, 123 Stat. 1947.)
A prior section 1087cc–1, Pub. L. 89–329, title IV, §463A, as added Pub. L. 96–374, title IV, §447(b), Oct. 3, 1980, 94 Stat. 1443; amended Pub. L. 97–301, §13, Oct. 13, 1982, 96 Stat. 1405; Pub. L. 98–79, §3(b), Aug. 15, 1983, 97 Stat. 478; Pub. L. 99–272, title XVI, §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.
2009—Subsec. (a). Pub. L. 111–39 struck out “, in order to carry out the provisions of section 1087cc(a)(8) of this title,” after “Each institution of higher education” in introductory provisions.
2008—Subsec. (a)(11). Pub. L. 110–315 substituted “consumer” for “credit bureau or credit”.
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)
“(e)
1992—Subsec. (a)(11). Pub. L. 102–325, §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, §463(c)(2), added subsecs. (d) and (e).
1987—Subsec. (a)(8). Pub. L. 100–50, §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, §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)”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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.
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. 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.
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.
(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) $5,500, in the case of a student who has not successfully completed a program of undergraduate education; or
(ii) $8,000, 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) $60,000, 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) $27,500, 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) $11,000, 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.
(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.
(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 cancelled—
(i) upon the death of the borrower;
(ii) if the borrower becomes permanently and totally disabled as determined in accordance with regulations of the Secretary;
(iii) if the borrower is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months; or
(iv) if the borrower is determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected disability;
(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 consumer reporting agencies 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) 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,
and for the 180-day period following the demobilization date for the service described in subclause (I) or (II);
(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.
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.
(1) The Secretary shall ensure that, as documented in accordance with paragraph (2), 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—
(A) the borrower's debt burden equals or exceeds 20 percent of such borrower's gross income;
(B) the institution determines that the borrower should qualify for forbearance for other reasons; or
(C) 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.
(2) For the purpose of paragraph (1), the terms of forbearance agreed to by the parties shall be documented by—
(A) confirming the agreement of the borrower by notice to the borrower from the institution of higher education; and
(B) recording the terms in the borrower's file.
(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.
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.
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.
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.
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.
The Secretary or institution, as the case may be, shall report to consumer reporting agencies with respect to loans that have been discharged pursuant to this subsection.
If the borrower of a loan made under this part who has defaulted on the loan makes 9 on-time, 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 consumer reporting agency to which the default was reported remove the default from the borrower's credit history.
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.
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.
A borrower only once may obtain the benefit of this paragraph with respect to rehabilitating a loan under this part.
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.
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.
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.
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.
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)(1)(C).
The Secretary may develop such additional safeguards as the Secretary determines necessary to prevent fraud and abuse in the cancellation of liability under subsection (c)(1)(F). Notwithstanding subsection (c)(1)(F), the Secretary may promulgate regulations to resume collection on loans cancelled under subsection (c)(1)(F) in any case in which—
(1) a borrower received a cancellation of liability under subsection (c)(1)(F) and after the cancellation the borrower—
(A) receives a loan made, insured, or guaranteed under this subchapter and part C of subchapter I of chapter 34 of title 42; or
(B) has earned income in excess of the poverty line; or
(2) the Secretary determines necessary.
(Pub. L. 89–329, title IV, §464, as added Pub. L. 99–498, title IV, §405(a), Oct. 17, 1986, 100 Stat. 1448; amended Pub. L. 100–50, §13(i), June 3, 1987, 101 Stat. 349; Pub. L. 100–369, §7(c), July 18, 1988, 102 Stat. 837; Pub. L. 101–239, title II, §2002(a)(3), Dec. 19, 1989, 103 Stat. 2111; Pub. L. 102–325, title IV, §464, July 23, 1992, 106 Stat. 580; Pub. L. 103–208, §2(f)(9)–(11), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 105–244, title IV, §464, Oct. 7, 1998, 112 Stat. 1725; Pub. L. 107–314, div. A, title VI, §651(d), Dec. 2, 2002, 116 Stat. 2580; Pub. L. 109–171, title VIII, §8007(c), Feb. 8, 2006, 120 Stat. 160; Pub. L. 110–84, title II, §202(c), Sept. 27, 2007, 121 Stat. 792; Pub. L. 110–315, title IV, §§432(b)(7), 464(a), (b)(1), (c), Aug. 14, 2008, 122 Stat. 3246, 3266, 3267; Pub. L. 111–39, title IV, §405(4), July 1, 2009, 123 Stat. 1947.)
Section 1087cc(a) of this title, referred to in subsec. (c)(1)(G), was amended by Pub. L. 105–244, title IV, §463(a)(3), Oct. 7, 1998, 112 Stat. 1724, which redesignated pars. (6) and (7) as (5) and (6), respectively.
A prior section 1087dd, Pub. L. 89–329, title IV, §464, as added Pub. L. 92–318, title I, §137(b), June 23, 1972, 86 Stat. 275; amended Pub. L. 94–482, title I, §130(d)–(g)(1), Oct. 12, 1976, 90 Stat. 2147; Pub. L. 95–43, §1(a)(39), June 15, 1977, 91 Stat. 217; Pub. L. 96–374, title IV, §§442(b)(5), 443, 444, 445(b)(2), 446, 448(c), title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1440–1443, 1503; Pub. L. 97–35, title V, §539, Aug. 13, 1981, 95 Stat. 458; Pub. L. 99–272, title XVI, §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.
2009—Subsec. (c). Pub. L. 111–39, §405(4)(A), substituted “(i)” for “(I)” and “(ii)” for “(II)” in par. (1)(D) and realigned margins in par. (2)(A)(iii).
Subsec. (g)(5). Pub. L. 111–39, §405(4)(B), substituted “consumer reporting agencies” for “credit bureaus”.
2008—Subsec. (a)(2)(A). Pub. L. 110–315, §464(a)(1), substituted “$5,500” for “$4,000” in cl. (i) and “$8,000” for “$6,000” in cl. (ii).
Subsec. (a)(2)(B). Pub. L. 110–315, §464(a)(2), substituted “$60,000” for “$40,000” in cl. (i), “$27,500” for “$20,000” in cl. (ii), and “$11,000” for “$8,000” in cl. (iii).
Subsec. (c)(1)(F). Pub. L. 110–315, §464(b)(1)(A), substituted “cancelled—” and cls. (i) to (iv) for “canceled upon the death of the borrower, or if he becomes permanently and totally disabled as determined in accordance with regulations of the Secretary;”.
Subsec. (c)(1)(I). Pub. L. 110–315, §432(b)(7)(A), substituted “consumer reporting agencies” for “credit bureau organizations”.
Subsec. (e). Pub. L. 110–315, §464(c)(1), substituted “, as documented in accordance with paragraph (2),” for “, upon written request,” in introductory provisions, designated existing text as par. (1), redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, and added par. (2).
Subsec. (h)(1)(A). Pub. L. 110–315, §§432(b)(7)(B), 464(c)(2), substituted “9 on-time” for “12 ontime” and “consumer” for “credit bureau organization or credit”.
Subsec. (j)(2). Pub. L. 110–315, §464(c)(3), substituted “subsection (e)(1)(C)” for “subsection (e)(3)”.
Subsec. (k). Pub. L. 110–315, §464(b)(1)(B), added subsec. (k).
2007—Subsec. (c)(2)(A)(iii). Pub. L. 110–84 struck out “not in excess of 3 years” before “during” in introductory provisions, substituted comma for semicolon at end of subcl. (II), and inserted concluding provisions.
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, §651(d)(1), added par. (3).
Subsec. (j). Pub. L. 107–314, §651(d)(2), added subsec. (j).
1998—Subsec. (a)(2). Pub. L. 105–244, §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, §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, §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, §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, §464(c)(2), substituted “subparagraph (A) of paragraph (1)” for “subparagraph (B)” in concluding provisions.
Subsec. (c)(2)(C). Pub. L. 105–244, §464(c)(3), added subpar. (C).
Subsec. (c)(7). Pub. L. 105–244, §464(c)(4), added par. (7).
Subsecs. (g) to (i). Pub. L. 105–244, §464(d), added subsecs. (g) to (i).
1993—Subsec. (c)(2)(B). Pub. L. 103–208, §2(f)(9), substituted “repayment of” for “repayment or”.
Subsec. (c)(6). Pub. L. 103–208, §2(f)(10), substituted “Fulbright” for “Fullbright”.
Subsec. (e). Pub. L. 103–208, §2(f)(11), substituted “principal” for “principle” before “only”.
1992—Subsec. (a)(2). Pub. L. 102–325, §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, §464(b), added par. (4).
Subsec. (b)(1). Pub. L. 102–325, §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, §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, §464(d), substituted “$40” for “$30” in two places.
Subsec. (c)(1)(E). Pub. L. 102–325, §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, §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, §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, §464(g)(2)–(4), added par. (4), redesignated former par. (4) as (5), and added par. (6).
Subsecs. (e), (f). Pub. L. 102–325, §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.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 110–315, title IV, §464(b)(2), Aug. 14, 2008, 122 Stat. 3267, provided that: “The amendments made by paragraph (1) [amending this section] shall take effect on July 1, 2008.”
Amendment by Pub. L. 110–84 effective Oct. 1, 2007, see section 1(c) of Pub. L. 110–84, set out as a note under section 1070a of this title.
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 all loans under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq., 42 U.S.C. 2751 et seq.), see section 8007(f) of Pub. L. 109–171, set out as a note under section 1078 of this title.
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.
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. 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 468 of Pub. L. 102–325, as amended by Pub. L. 102–394, title III, §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 (§§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, §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.”]
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.
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.
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, §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].”
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.
1 See References in Text note below.
(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 (including such a teacher employed by an educational service agency)—
(i) in a public or other nonprofit private elementary school or secondary school, which, for the purpose of this paragraph and for that year—
(I) has been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the school is located) to be a school in which the number of children meeting a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6313(a)(5)], exceeds 30 percent of the total number of children enrolled in such school; and
(II) is in the school district of a local educational agency which is eligible in such year for assistance pursuant to part A of title I of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6311 et seq.]; or
(ii) in one or more public, or nonprofit private, elementary schools or secondary schools or locations operated by an educational service agency that have been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the educational service agency operates) to be a school or location at which the number of children taught who meet a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6313(a)(5)], exceeds 30 percent of the total number of children taught at such school or location;
(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.], or in a prekindergarten or child care program that is licensed or regulated by the State, that 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, including a system administered by an educational service agency, 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, or as a full-time attorney employed in a defender organization established in accordance with section 3006A(g)(2) of title 18;
(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;
(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;
(J) as a full-time fire fighter for service to a local, State, or Federal fire department or fire district;
(K) as a full-time faculty member at a Tribal College or University, as that term is defined in section 1059c of this title;
(L) as a librarian, if the librarian has a master's degree in library science and is employed in—
(i) an elementary school or secondary school that is eligible for assistance under part A of title I of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6311 et seq.]; or
(ii) a public library that serves a geographic area that contains one or more schools eligible for assistance under part A of title I of the Elementary and Secondary Education Act of 1965; or
(M) as a full-time speech language pathologist, if the pathologist has a masters degree and is working exclusively with schools that are eligible for assistance under title I of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6301 et seq.].
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), (D), (F), (G), (H), (I), (J), (K), (L), or (M) 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; or
(iii) 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.
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.
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.
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 1 subsequent years.
(Pub. L. 89–329, title IV, §465, as added Pub. L. 99–498, title IV, §405(a), Oct. 17, 1986, 100 Stat. 1451; amended Pub. L. 100–50, §13(j), June 3, 1987, 101 Stat. 349; Pub. L. 100–369, §7(c), July 18, 1988, 102 Stat. 837; Pub. L. 101–476, title IX, §901(e), Oct. 30, 1990, 104 Stat. 1151; Pub. L. 101–647, title XXI, §2101(a), (b), Nov. 29, 1990, 104 Stat. 4856; Pub. L. 102–119, §26(h), Oct. 7, 1991, 105 Stat. 607; Pub. L. 102–325, title IV, §465(a)–(c), July 23, 1992, 106 Stat. 582, 583; Pub. L. 103–82, title I, §102(c)(3), Sept. 21, 1993, 107 Stat. 824; Pub. L. 103–208, §2(f)(12)–(14), (k)(7), Dec. 20, 1993, 107 Stat. 2471, 2486; Pub. L. 103–382, title III, §391(e)(3), Oct. 20, 1994, 108 Stat. 4022; Pub. L. 105–244, title IV, §465, Oct. 7, 1998, 112 Stat. 1728; Pub. L. 108–446, title III, §305(c)(1), Dec. 3, 2004, 118 Stat. 2805; Pub. L. 110–315, title IV, §465, Aug. 14, 2008, 122 Stat. 3267; Pub. L. 111–39, title IV, §405(5), July 1, 2009, 123 Stat. 1947.)
The Elementary and Secondary Education Act of 1965, referred to in subsec. (a)(2)(A)(i), (L), (M), is Pub. L. 89–10, Apr. 11, 1965, 79 Stat. 27. Title I of the Act is classified generally to subchapter I (§6301 et seq.) of chapter 70 of this title. Part A of title I of the Act is classified generally to part A (§6311 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.
The Head Start Act, referred to in subsec. (a)(2)(B), is subchapter B (§§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 (§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 (§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 (§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 (§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.
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.
A prior section 1087ee, Pub. L. 89–329, title IV, §465, as added Pub. L. 92–318, title I, §137(b), June 23, 1972, 86 Stat. 277; amended Pub. L. 95–561, title XIII, §1323, Nov. 1, 1978, 92 Stat. 2363; Pub. L. 96–374, title IV, §§442(b)(6), 448(d), (e), title XIII, §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.
2009—Subsec. (a)(6). Pub. L. 111–39 substituted “12601” for “12571”.
2008—Subsec. (a)(2)(A). Pub. L. 110–315, §465(1)(A), added subpar. (A) and struck out former subpar. (A) which read as follows: “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, 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 exceeds 30 percent of the total enrollment of that school;”.
Subsec. (a)(2)(B). Pub. L. 110–315, §465(1)(B), substituted “Head Start Act, or in a prekindergarten or child care program that is licensed or regulated by the State, that” for “Head Start Act which”.
Subsec. (a)(2)(C). Pub. L. 110–315, §465(1)(C), inserted “, including a system administered by an educational service agency” after “secondary school system”.
Subsec. (a)(2)(F). Pub. L. 110–315, §465(1)(D), added subpar. (F) and struck out former subpar. (F) which read as follows: “as a full-time law enforcement officer or corrections officer for service to local, State, or Federal law enforcement or corrections agencies;”.
Subsec. (a)(2)(J) to (M). Pub. L. 110–315, §465(1)(E)–(G), added subpars. (J) to (M).
Subsec. (a)(3)(A)(i). Pub. L. 110–315, §465(2)(A), inserted “(D),” after “(C),” and substituted “(I), (J), (K), (L), or (M)” for “or (I)”.
Subsec. (a)(3)(A)(iii), (iv). Pub. L. 110–315, §465(2)(B)–(D), redesignated cl. (iv) as (iii) and struck out former cl. (iii) which read as follows: “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 12½ percent for each year of qualifying service; or”.
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, §465(1)(B), substituted “section 1401” for “section 1401(a)(1)” in concluding provisions.
Subsec. (a)(2)(C). Pub. L. 105–244, §465(1)(A), substituted “section 1435(a)(10)” for “section 1476(b)(9)”.
Subsec. (a)(7). Pub. L. 105–244, §465(1)(C), added par. (7).
Subsec. (b). Pub. L. 105–244, §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, §2(k)(7), amended Pub. L. 102–325, §465(a)(1). See 1992 Amendment note below.
Subsec. (a)(2)(D). Pub. L. 103–208, §2(f)(12), substituted “service” for “services”.
Subsec. (a)(2)(F). Pub. L. 103–208, §2(f)(13), struck out “or” after semicolon at end.
Subsec. (a)(6). Pub. L. 103–208, §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, §465(a)(1), as amended by Pub. L. 103–208, §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, §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, §465(a)(3)–(5), added subpars. (G) to (I).
Subsec. (a)(3)(A)(i). Pub. L. 102–325, §465(b), substituted “(A), (C), (F), (G), (H), or (I)” for “(A), (C), or (F)”.
Subsec. (c). Pub. L. 102–325, §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, §901(e), substituted “children with disabilities” for “handicapped children” in two places.
Subsec. (a)(2)(F). Pub. L. 101–647, §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, §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, §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, §13(j)(3), substituted “the Head Start Act” for “section 2809(a)(1) of title 42”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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. 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.
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.”
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.
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.
1 So in original. Probably should be “in such”.
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.
After October 1, 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.
(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.
(Pub. L. 89–329, title IV, §466, as added Pub. L. 99–498, title IV, §405(a), Oct. 17, 1986, 100 Stat. 1453; amended Pub. L. 102–325, title IV, §466, July 23, 1992, 106 Stat. 584; Pub. L. 103–208, §2(f)(15), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 105–244, title IV, §466, Oct. 7, 1998, 112 Stat. 1728; Pub. L. 110–84, title V, §501, Sept. 27, 2007, 121 Stat. 801.)
A prior section 1087ff, Pub. L. 89–329, title IV, §466, as added Pub. L. 92–318, title I, §137(b), June 23, 1972, 86 Stat. 278; amended Pub. L. 94–482, title I, §130(h), Oct. 12, 1976, 90 Stat. 2147; Pub. L. 96–374, title IV, §442(c), title XIII, §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.
2007—Subsec. (b). Pub. L. 110–84 substituted “October 1, 2012” for “March 31, 2012”.
1998—Subsec. (a). Pub. L. 105–244, §466(1)(A), in introductory provisions, substituted “2003” for “1996” and “2004” for “1997”.
Subsec. (a)(1). Pub. L. 105–244, §466(1)(B), substituted “2003” for “1996”.
Subsec. (b). Pub. L. 105–244, §466(2), substituted “2012” for “2005” and “2003” for “1996”.
Subsec. (c)(1). Pub. L. 105–244, §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, §466(1), substituted “2005” for “1997”.
Subsec. (c). Pub. L. 102–325, §466(2), designated existing provisions as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, and added par. (2).
Amendment by Pub. L. 110–84 effective Oct. 1, 2007, see section 1(c) of Pub. L. 110–84, set out as a note under section 1070a of this title.
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. 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.
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.
The Secretary shall continue to attempt to collect any loan referred, transferred, or assigned under paragraph (4) or (5) of section 1087cc(a) of this title until all appropriate collection efforts, as determined by the Secretary, have been expended.
(Pub. L. 89–329, title IV, §467, as added Pub. L. 99–498, title IV, §405(a), Oct. 17, 1986, 100 Stat. 1453; amended Pub. L. 102–325, title IV, §467, July 23, 1992, 106 Stat. 584; Pub. L. 105–244, title IV, §467(a), Oct. 7, 1998, 112 Stat. 1728; Pub. L. 111–39, title IV, §405(6), July 1, 2009, 123 Stat. 1947.)
A prior section 1087gg, Pub. L. 89–329, title IV, §467, as added Pub. L. 96–49, §5(d)(3)(A), Aug. 13, 1979, 93 Stat. 352; amended Pub. L. 96–374, title IV, §445(c), title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1442, 1503; Pub. L. 99–272, title XVI, §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.
2009—Subsec. (b). Pub. L. 111–39 substituted “paragraph (4) or (5)” for “paragraph (5)(A), (5)(B)(i), or (6)”.
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).
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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. 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.
Pub. L. 105–244, title IV, §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.”
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.
(Pub. L. 89–329, title IV, §468, as added Pub. L. 99–498, title IV, §405(a), Oct. 17, 1986, 100 Stat. 1454.)
A prior section 1087hh, Pub. L. 89–329, title IV, §468, as added Pub. L. 96–374, title IV, §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, §469, as added Pub. L. 96–374, title IV, §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.
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.].
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.
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 “early intervention services” has the meaning given the term in section 1432 of this title.
(Pub. L. 89–329, title IV, §469, as added Pub. L. 102–325, title IV, §465(d), July 23, 1992, 106 Stat. 583; amended Pub. L. 103–382, title III, §391(e)(4), Oct. 20, 1994, 108 Stat. 4022; Pub. L. 108–446, title III, §305(c)(2), Dec. 3, 2004, 118 Stat. 2805; Pub. L. 111–39, title IV, §405(7), July 1, 2009, 123 Stat. 1947.)
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 (§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.
2009—Subsec. (c). Pub. L. 111–39 substituted “and the term ‘early intervention services’ has the meaning given the term in section 1432 of this title.” for “and the term ‘qualified professional provider of early intervention services’ has the meaning specified in section 1472(2) of this title.”
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”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
This part was added as part F of title IV of Pub. L. 89–329 by Pub. L. 99–498, title IV, §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.
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).
(Pub. L. 89–329, title IV, §471, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1454; amended Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 585; Pub. L. 105–244, title IV, §480(a), Oct. 7, 1998, 112 Stat. 1732.)
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.”
Pub. L. 105–244, title IV, §480A, Oct. 7, 1998, 112 Stat. 1732, provided that:
“(a)
“(b)
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.”
Section 406(b)(1)–(3) of Pub. L. 99–498, as amended by Pub. L. 100–50, §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.]
Pub. L. 108–199, div. E, title III, §305, Jan. 23, 2004, 118 Stat. 263, provided that:
“(a)
“(b)
“(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 [now the Food and Nutrition Act of 2008, 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)
“(d)
“(1)
“(2)
“(3)
“(4)
“(e)
“(1)
“(2)
“(f)
“(g)
1 So in original. Probably should be “subpart”.
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;
(C) for students who live in housing located on a military base or for which a basic allowance is provided under section 403(b) of title 37, shall be an allowance based on the expenses reasonably incurred by such students for board but not for room; and
(D) 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).
(Pub. L. 89–329, title IV, §472, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1454; amended Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 585; Pub. L. 103–208, §2(g)(1), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 105–244, title IV, §471, Oct. 7, 1998, 112 Stat. 1729; Pub. L. 109–171, title VIII, §8016, Feb. 8, 2006, 120 Stat. 172; Pub. L. 110–315, title IV, §471(a), Aug. 14, 2008, 122 Stat. 3269.)
2008—Par. (3)(C), (D). Pub. L. 110–315 added subpar. (C) and redesignated former subpar. (C) as (D).
2006—Par. (4). Pub. L. 109–171, §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, §8016(2)–(4), added par. (13).
1998—Par. (2). Pub. L. 105–244, §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, §471(2)(A), substituted “determined by the institution” for “of not less than $1,500”.
Par. (3)(C). Pub. L. 105–244, §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, §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, §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).
Pub. L. 110–315, title IV, §471(b), Aug. 14, 2008, 122 Stat. 3269, provided that: “The amendments made by subsection (a) [amending this section] shall take effect on July 1, 2010.”
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. 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 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. 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.
For the purpose of this subchapter and part C of subchapter I of chapter 34 of title 42, other than subpart 2 of part A of this subchapter, and except as provided in subsection (b), 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.
Notwithstanding any other provision of this subchapter and part C of subchapter I of chapter 34 of title 42, the family contribution of each student described in paragraph (2) shall be deemed to be zero for the academic year for which the determination is made.
Paragraph (1) shall apply to any dependent or independent student with respect to determinations of need for academic year 2009–2010 and succeeding academic years—
(A) who is eligible to receive a Federal Pell Grant for the academic year for which the determination is made;
(B) whose parent or guardian was a member of the Armed Forces of the United States and died as a result of performing military service in Iraq or Afghanistan after September 11, 2001; and
(C) who, at the time of the parent or guardian's death, was—
(i) less than 24 years of age; or
(ii) enrolled at an institution of higher education on a part-time or full-time basis.
Notwithstanding any other provision of law, the Secretary of Veterans Affairs and the Secretary of Defense, as appropriate, shall provide the Secretary of Education with information necessary to determine which students meet the requirements of paragraph (2).
(Pub. L. 89–329, title IV, §473, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1455; amended Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 586; Pub. L. 105–244, title IV, §480(b), Oct. 7, 1998, 112 Stat. 1732; Pub. L. 111–39, title IV, §406(a)(1), July 1, 2009, 123 Stat. 1948.)
2009—Pub. L. 111–39 designated existing provisions as subsec. (a), inserted heading, substituted “For the purpose of this subchapter and part C of subchapter I of chapter 34 of title 42, other than subpart 2 of part A of this subchapter, and except as provided in subsection (b),” for “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,”, and added subsec. (b).
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.”
Pub. L. 111–39, title IV, §406(b), July 1, 2009, 123 Stat. 1950, provided that: “The amendments made by—
“(1) paragraph (1) of subsection (a) [amending this section] shall take effect on July 1, 2009; and
“(2) paragraph (4) of such subsection [amending section 1087ss of this title] shall be effective as if enacted as part of the amendments in section 602(a) of the College Cost Reduction and Access Act (Public Law 110–84), and shall take effect on July 1, 2009.”
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 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.
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.
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.
(Pub. L. 89–329, title IV, §474, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1456; amended Pub. L. 100–369, §7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 587; Pub. L. 105–244, title IV, §472, Oct. 7, 1998, 112 Stat. 1729.)
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.
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.
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.
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).
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.
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.
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):
| If parents’ State or territory of residence is— | And parents’ total income is— | |
|---|---|---|
| less than $15,000 or | $15,000 or more | |
| (1)then the percentage is— | ||
| Alaska, Puerto Rico, Wyoming | 3 | 2 |
| American Samoa, Guam, Louisiana, Nevada, Texas, Trust Territory, Virgin Islands | 4 | 3 |
| Florida, South Dakota, Tennessee, New Mexico | 5 | 4 |
| North Dakota, Washington | 6 | 5 |
| Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, Montana, New Hampshire, Oklahoma, West Virginia | 7 | 6 |
| Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky | 8 | 7 |
| California, Delaware, Idaho, Iowa, Nebraska, North Carolina, Ohio, Pennsylvania, South Carolina, Utah, Vermont, Virginia, Canada, Mexico | 9 | 8 |
| Maine, New Jersey | 10 | 9 |
| District of Columbia, Hawaii, Maryland, Massachusetts, Oregon, Rhode Island | 11 | 10 |
| Michigan, Minnesota | 12 | 11 |
| Wisconsin | 13 | 12 |
| New York | 14 | 13 |
| Other | 9 | 8 |
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.
The income protection allowance is determined by the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):
| Family Size | Number in College | |||||
|---|---|---|---|---|---|---|
| (including student) | 1 | 2 | 3 | 4 | 5 | For each additional subtract: |
| 2 | $10,520 | $8,720 | $1,790 | |||
| 3 | 13,100 | 11,310 | $9,510 | |||
| 4 | 16,180 | 14,380 | 12,590 | $10,790 | ||
| 5 | 19,090 | 17,290 | 15,500 | 13,700 | $11,910 | |
| 6 | 22,330 | 20,530 | 18,740 | 16,940 | 15,150 | |
| For each additional add: | 2,520 | 2,520 | 2,520 | 2,520 | 2,520 | |
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.
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.
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:
| If the net worth of a business or farm is— | Then the adjusted net worth 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 |
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):
| If the age of the oldest parent is— | And there are | |
|---|---|---|
| two parents | one parent | |
| (1)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 |
The asset conversion rate is 12 percent.
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):
| 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 |
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.
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.
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.
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.
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 the following amount (or a successor amount prescribed by the Secretary under section 1087rr of this title)—
(i) for academic year 2009–2010, $3,750;
(ii) for academic year 2010–2011, $4,500;
(iii) for academic year 2011–2012, $5,250; and
(iv) for academic year 2012–2013, $6,000;
(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).
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):
| If the students’ State or territory of residence is— | The percentage is— |
|---|---|
| Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, Tennessee, Texas, Trust Territory, Virgin Islands, Washington, Wyoming | 0 |
| Connecticut, Louisiana, Puerto Rico | 1 |
| Arizona, New Hampshire, New Mexico, North Dakota | 2 |
| Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, Missouri, Montana, Nebraska, New Jersey, Oklahoma | 3 |
| Arkansas, Georgia, Iowa, Kentucky, Maine, Pennsylvania, Utah, Vermont, Virginia, West Virginia, Canada, Mexico | 4 |
| California, Idaho, Massachusetts, North Carolina, Ohio, Rhode Island, South Carolina | 5 |
| Hawaii, Maryland, Michigan, Wisconsin | 6 |
| Delaware, District of Columbia, Minnesota, Oregon | 7 |
| New York | 8 |
| Other | 4 |
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.
The student's available income (determined in accordance with paragraph (1) of this subsection) is assessed at 50 percent.
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).
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.
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.
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.
(Pub. L. 89–329, title IV, §475, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1456; amended Pub. L. 100–50, §14(1)–(12), June 3, 1987, 101 Stat. 349, 350; Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 587; Pub. L. 103–208, §2(g)(2)–(5), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–78, title VI, §609(g), Nov. 13, 1997, 111 Stat. 1523; Pub. L. 105–244, title IV, §473, Oct. 7, 1998, 112 Stat. 1729; Pub. L. 109–171, title VIII, §8017(a)(1), Feb. 8, 2006, 120 Stat. 173; Pub. L. 110–84, title VI, §601(a), Sept. 27, 2007, 121 Stat. 801; Pub. L. 111–39, title IV, §406(a)(2), July 1, 2009, 123 Stat. 1948.)
2009—Subsec. (c)(5)(B). Pub. L. 111–39 made technical amendment to reference in original act which appears in text as reference to section 2 of title 26.
2007—Subsec. (g)(2)(D). Pub. L. 110–84 amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “an income protection allowance of $3,000 (or a successor amount prescribed by the Secretary under section 1087rr of this title);”.
2006—Subsec. (g)(2)(D). Pub. L. 109–171, §8017(a)(1)(A), substituted “$3,000” for “$2,200”.
Subsec. (h). Pub. L. 109–171, §8017(a)(1)(B), substituted “20” for “35”.
1998—Subsec. (b)(3). Pub. L. 105–244, §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, §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, §473(b)(1)(B), (C), added subpar. (F).
Subsec. (g)(6). Pub. L. 105–244, §473(b)(2), added par. (6).
Subsec. (j). Pub. L. 105–244, §473(c), added subsec. (j).
1997—Subsec. (c)(1)(F). Pub. L. 105–78, §609(g)(1), added subpar. (F).
Subsec. (g)(2)(E). Pub. L. 105–78, §609(g)(2), added subpar. (E).
1993—Subsec. (c)(4). Pub. L. 103–208, §2(g)(2), substituted “$9,510” for “9,510” in table.
Subsec. (f)(3). Pub. L. 103–208, §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, §2(g)(4), inserted closing parenthesis after “paragraph (2)”.
Subsec. (g)(3). Pub. L. 103–208, §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, §14(1), substituted “section 1087rr of this title” for “section 1087ss of this title”.
Subsec. (c)(7). Pub. L. 100–50, §14(2), struck out “National” before “Center”.
Subsec. (d)(2)(B). Pub. L. 100–50, §14(3), substituted “displaced homemaker” for “dislocated homemaker”.
Subsec. (d)(2)(C). Pub. L. 100–50, §14(1), substituted “section 1087rr of this title” for “section 1087ss of this title”.
Pub. L. 100–50, §14(4), added table after subpar. (C) and struck out former table which read as follows:
| If the net worth of a business or farm is— | Then the adjusted net worth 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, §14(5), substituted “$15,999” for “$15,000”.
Subsec. (d)(4)(C). Pub. L. 100–50, §14(6), substituted “$16,000” for “$15,000” in three places.
Subsec. (d)(4)(D). Pub. L. 100–50, §14(7), substituted “income is less than zero” for “income is equal to or less than zero”.
Subsec. (e). Pub. L. 100–50, §14(8), inserted a minus sign before “$3,409” in two places in table.
Subsec. (g)(1)(C). Pub. L. 100–50, §14(9), substituted “paragraph (2)” for “paragraph (3)”.
Subsec. (g)(3). Pub. L. 100–50, §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, §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, §14(12), added subsec. (i).
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 110–84, title VI, §601(e), Sept. 27, 2007, 121 Stat. 804, provided that: “The amendments made by this section [amending this section and sections 1087pp, 1087qq, and 1087rr of this title] shall be effective on July 1, 2009.”
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, §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.”
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.
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. 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.
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.
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.
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) for single or separated students, or married students where both are enrolled pursuant to subsection (a)(2)—
(aa) for academic year 2009–2010, $7,000;
(bb) for academic year 2010–2011, $7,780;
(cc) for academic year 2011–2012, $8,550; and
(dd) for academic year 2012–2013, $9,330; and
(II) for married students where 1 is enrolled pursuant to subsection (a)(2)—
(aa) for academic year 2009–2010, $11,220;
(bb) for academic year 2010–2011, $12,460;
(cc) for academic year 2011–2012, $13,710; and
(dd) for academic year 2012–2013, $14,960;
(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).
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):
| If the students’ State or territory of residence is— | The percentage is— |
|---|---|
| Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, Tennessee, Texas, Trust Territory, Virgin Islands, Washington, Wyoming | 0 |
| Connecticut, Louisiana, Puerto Rico | 1 |
| Arizona, New Hampshire, New Mexico, North Dakota | 2 |
| Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, Missouri, Montana, Nebraska, New Jersey, Oklahoma | 3 |
| Arkansas, Georgia, Iowa, Kentucky, Maine, Pennsylvania, Utah, Vermont, Virginia, West Virginia, Canada, Mexico | 4 |
| California, Idaho, Massachusetts, North Carolina, Ohio, Rhode Island, South Carolina | 5 |
| Hawaii, Maryland, Michigan, Wisconsin | 6 |
| Delaware, District of Columbia, Minnesota, Oregon | 7 |
| New York | 8 |
| Other | 4 |
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.
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.
The family's available income (determined in accordance with paragraph (1)(A) of this subsection) is assessed at 50 percent.
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.
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:
| If the net worth of a business or farm is— | Then the adjusted net worth 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 |
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):
| If the age of the student is— | And the student is | |
|---|---|---|
| married | single | |
| (1)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 |
The asset conversion rate is 20 percent.
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.
(Pub. L. 89–329, title IV, §476, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1463; amended Pub. L. 100–50, §14(1), (3), (4), (13)–(17), June 3, 1987, 101 Stat. 349, 351; Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 594; Pub. L. 103–208, §2(g)(6), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–78, title VI, §609(h), Nov. 13, 1997, 111 Stat. 1524; Pub. L. 105–244, title IV, §474, Oct. 7, 1998, 112 Stat. 1730; Pub. L. 109–171, title VIII, §8017(b)(1), Feb. 8, 2006, 120 Stat. 173; Pub. L. 110–84, title VI, §601(b), Sept. 27, 2007, 121 Stat. 801.)
2007—Subsec. (b)(1)(A)(iv). Pub. L. 110–84 amended cl. (iv) generally. Prior to amendment, cl. (iv) read as follows: “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;”.
2006—Subsec. (b)(1)(A)(iv). Pub. L. 109–171, §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, §8017(b)(1)(B), substituted “20” for “35”.
1998—Subsec. (a)(3). Pub. L. 105–244, §474(a), added par. (3).
Subsec. (b)(1)(A)(iv). Pub. L. 105–244, §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, §474(b)(2), substituted “$5,000” for “$3,000”.
Subsec. (b)(1)(A)(iv)(III). Pub. L. 105–244, §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, §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, §14(13)(B), redesignated subpar. (B) as (C). Former subpar. (C) redesignated (D).
Subsec. (b)(1)(D). Pub. L. 100–50, §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, §14(13)(A), (B), redesignated subpar. (C) as (D) and substituted “subparagraph (C)” for “subparagraph (B)”.
Subsec. (b)(2). Pub. L. 100–50, §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, §14(16)(A), substituted “$8,600” for “$8,900”.
Subsec. (b)(4)(B). Pub. L. 100–50, §14(16), substituted “$8,600” for “$8,900” in two places and “$6,020” for “$6,230”.
Subsec. (c)(1). Pub. L. 100–50, §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, §14(3), substituted “displaced homemaker” for “dislocated homemaker”.
Subsec. (c)(2)(C). Pub. L. 100–50, §14(4), added table and struck out former table which read as follows:
| If the net worth of a business or farm is— | Then the adjusted net worth 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, §14(1), substituted “section 1087rr of this title” for “section 1087ss of this title”.
Amendment by Pub. L. 110–84 effective July 1, 2009, see section 601(e) of Pub. L. 110–84, set out as a note under section 1087oo of this title.
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, §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.”
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.
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. 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.
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.
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.
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.
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):
| If student's State or territory of residence is— | And family's total income is— | |
|---|---|---|
| less than $15,000 | $15,000 or more | |
| (1)then the percentage is— | ||
| Alaska, Puerto Rico, Wyoming | 3 | 2 |
| American Samoa, Guam, Louisiana, Nevada, Texas, Trust Territory, Virgin Islands | 4 | 3 |
| Florida, South Dakota, Tennessee, New Mexico | 5 | 4 |
| North Dakota, Washington | 6 | 5 |
| Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, Montana, New Hampshire, Oklahoma, West Virginia | 7 | 6 |
| Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky | 8 | 7 |
| California, Delaware, Idaho, Iowa, Nebraska, North Carolina, Ohio, Pennsylvania, South Carolina, Utah, Vermont, Virginia, Canada, Mexico | 9 | 8 |
| Maine, New Jersey | 10 | 9 |
| District of Columbia, Hawaii, Maryland, Massachusetts, Oregon, Rhode Island | 11 | 10 |
| Michigan, Minnesota | 12 | 11 |
| Wisconsin | 13 | 12 |
| New York | 14 | 13 |
| Other | 9 | 8 |
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.
The income protection allowance is determined by the tables described in subparagraphs (A) through (D) (or a successor table prescribed by the Secretary under section 1087rr of this title).
For academic year 2009–2010, the income protection allowance is determined by the following table:
| Family Size | Number in College | |||||
|---|---|---|---|---|---|---|
| (including student) | 1 | 2 | 3 | 4 | 5 | For each additional subtract: |
| 2 | $17,720 | $14,690 | ||||
| 3 | 22,060 | 19,050 | $16,020 | |||
| 4 | 27,250 | 24,220 | 21,210 | $18,170 | ||
| 5 | 32,150 | 29,120 | 26,100 | 23,070 | $20,060 | |
| 6 | 37,600 | 34,570 | 31,570 | 28,520 | 25,520 | $3,020 |
| For each additional add: | 4,240 | 4,240 | 4,240 | 4,240 | 4,240 | |
For academic year 2010–2011, the income protection allowance is determined by the following table:
| Family Size | Number in College | |||||
|---|---|---|---|---|---|---|
| (including student) | 1 | 2 | 3 | 4 | 5 | For each additional subtract: |
| 2 | $19,690 | $16,330 | ||||
| 3 | 24,510 | 21,160 | $17,800 | |||
| 4 | 30,280 | 26,910 | 23,560 | $20,190 | ||
| 5 | 35,730 | 32,350 | 29,000 | 25,640 | $22,290 | |
| 6 | 41,780 | 38,410 | 35,080 | 31,690 | 28,350 | $3,350 |
| For each additional add: | 4,710 | 4,710 | 4,710 | 4,710 | 4,710 | |
For academic year 2011–2012, the income protection allowance is determined by the following table:
| Family Size | Number in College | |||||
|---|---|---|---|---|---|---|
| (including student) | 1 | 2 | 3 | 4 | 5 | For each additional subtract: |
| 2 | $21,660 | $17,960 | ||||
| 3 | 26,960 | 23,280 | $19,580 | |||
| 4 | 33,300 | 29,600 | 25,920 | $22,210 | ||
| 5 | 39,300 | 35,590 | 31,900 | 28,200 | $24,520 | |
| 6 | 45,950 | 42,250 | 38,580 | 34,860 | 31,190 | $3,690 |
| For each additional add: | 5,180 | 5,180 | 5,180 | 5,180 | 5,180 | |
For academic year 2012–2013, the income protection allowance is determined by the following table:
| Family Size | Number in College | |||||
|---|---|---|---|---|---|---|
| (including student) | 1 | 2 | 3 | 4 | 5 | For each additional subtract: |
| 2 | $23,630 | $19,590 | ||||
| 3 | 29,420 | 25,400 | $21,360 | |||
| 4 | 36,330 | 32,300 | 28,280 | $24,230 | ||
| 5 | 42,870 | 38,820 | 34,800 | 30,770 | $26,750 | |
| 6 | 50,130 | 46,100 | 42,090 | 38,030 | 34,020 | $4,020 |
| For each additional add: | 5,660 | 5,660 | 5,660 | 5,660 | 5,660 | |
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.
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.
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:
| If the net worth of a business or farm is— | Then the adjusted net worth 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 |
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):
| If the age of the student is— | And the student is | |
|---|---|---|
| married | single | |
| (1)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 |
The asset conversion rate is 7 percent.
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):
| 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 |
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.
(Pub. L. 89–329, title IV, §477, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1465; amended Pub. L. 100–50, §14(1)–(6), (8), (18), (19), June 3, 1987, 101 Stat. 349–351; Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 597; Pub. L. 103–208, §2(g)(2), (7), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–78, title VI, §609(i), Nov. 13, 1997, 111 Stat. 1524; Pub. L. 105–244, title IV, §475, Oct. 7, 1998, 112 Stat. 1730; Pub. L. 109–171, title VIII, §8017(c)(1), Feb. 8, 2006, 120 Stat. 173; Pub. L. 110–84, title VI, §601(c), Sept. 27, 2007, 121 Stat. 802; Pub. L. 111–39, title IV, §406(a)(3), July 1, 2009, 123 Stat. 1948.)
2009—Subsec. (b)(5)(B). Pub. L. 111–39 made technical amendment to reference in original act which appears in text as reference to section 2 of title 26.
2007—Subsec. (b)(4). Pub. L. 110–84 amended par. (4) generally. Prior to amendment, par. (4) consisted of a single table to be used to determine income protection allowances.
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, §2(g)(2), substituted “$9,510” for “9,510” in table.
Subsec. (e). Pub. L. 103–208, §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, §14(18), added subpar. (C).
Subsec. (b)(2). Pub. L. 100–50, §14(1), substituted “section 1087rr of this title” for “section 1087ss of this title”.
Subsec. (b)(5)(A). Pub. L. 100–50, §14(19), substituted “$2,100” for “$2,000”.
Subsec. (b)(7). Pub. L. 100–50, §14(2), struck out “National” before “Center”.
Subsec. (c)(2)(B). Pub. L. 100–50, §14(3), substituted “displaced homemaker” for “dislocated homemaker”.
Subsec. (c)(2)(C). Pub. L. 100–50, §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:
| If the net worth of a business or farm is— | Then the adjusted net worth 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, §14(5), substituted “$15,999” for “$15,000”.
Subsec. (c)(4)(C). Pub. L. 100–50, §14(6), substituted “$16,000” for “$15,000” in three places.
Subsec. (d). Pub. L. 100–50, §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.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Amendment by Pub. L. 110–84 effective July 1, 2009, see section 601(e) of Pub. L. 110–84, set out as a note under section 1087oo of this title.
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, §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.”
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.
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. 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.
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.
(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.
For each academic year after academic year 2008–2009, 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, subject to subparagraphs (B) and (C).
For each of the academic years 2009–2010 through 2012–2013, the Secretary shall not develop a revised table of income protection allowances under section 1087qq(b)(4) of this title and the table specified for such academic year under subparagraphs (A) through (D) of such section shall apply.
For each academic year after academic year 2012–2013, the Secretary shall develop the revised table of income protection allowances by increasing each of the dollar amounts contained in the table of income protection allowances under section 1087qq(b)(4)(D) of this title by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 2011 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10.
For each academic year after academic year 2008–2009, the Secretary shall develop the revised table of income protection allowances under section 1087oo(c)(4) of this title by increasing each of the dollar amounts contained in the table 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 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 for each academic year after academic year 2012–2013, by increasing each of the dollar amounts contained in such section for academic year 2012–2013 by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 2011 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10.
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).
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.
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).
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.
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.
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.
(Pub. L. 89–329, title IV, §478, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1470; amended Pub. L. 100–50, §14(20)–(22), June 3, 1987, 101 Stat. 351, 352; Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 602; Pub. L. 103–208, §2(g)(8), (9), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–244, title IV, §476, Oct. 7, 1998, 112 Stat. 1730; Pub. L. 109–171, title VIII, §8017(d), (e), Feb. 8, 2006, 120 Stat. 173, 174; Pub. L. 110–84, title VI, §601(d), Sept. 27, 2007, 121 Stat. 803.)
2007—Subsec. (b)(1). Pub. L. 110–84, §601(d)(1), added par. (1) and struck out former par. (1). Prior to amendment, par. (1) required the Secretary to publish in the Federal Register, for each academic year after academic year 1993–1994, a revised table of income protection allowances for the purpose of sections 1087oo(c)(4) and 1087qq(b)(4) of this title.
Subsec. (b)(2). Pub. L. 110–84, §601(d)(2), substituted “shall be developed for each academic year after academic year 2012–2013, by increasing each of the dollar amounts contained in such section for academic year 2012–2013 by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 2011 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10.” for “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.”
2006—Subsec. (b)(1). Pub. L. 109–171, §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, §8017(d)(2), substituted “2007–2008” for “2000–2001” and “2006” for “1999”.
Subsec. (h). Pub. L. 109–171, §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, §2(g)(8)(A), substituted “1993–1994” for “1992–1993”.
Subsec. (c). Pub. L. 103–208, §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, §2(g)(8)(A), substituted “1993–1994” for “1992–1993”.
Subsec. (h). Pub. L. 103–208, §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, §14(21), substituted “ ‘$24,000’, ‘$84,000’, and ‘$156,000’ ” for “ ‘$26,000’, ‘$91,000’, and ‘$169,000’ ”.
Subsec. (d). Pub. L. 100–50, §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, §14(22), substituted “Consumer Price Index for All Urban Consumers” for “Consumer Price Index for Wage Earners and Clerical Workers”.
Amendment by Pub. L. 110–84 effective July 1, 2009, see section 601(e) of Pub. L. 110–84, set out as a note under section 1087oo of this title.
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. 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 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. 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.
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.
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.
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.
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;
(III) include at least one parent who is a dislocated worker; or
(IV) received, or the student received, benefits at some time during the previous 24-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;
(III) is a dislocated worker or has a spouse who is a dislocated worker; or
(IV) received benefits at some time during the previous 24-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.
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.
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.
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;
(iii) include at least one parent who is a dislocated worker; or
(iv) received, or the student received, benefits at some time during the previous 24-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 $23,000; 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;
(iii) is a dislocated worker or has a spouse who is a dislocated worker; or
(iv) received benefits at some time during the previous 24-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 $23,000.
An individual is not required to qualify or file for the earned income credit in order to be eligible under this subsection. The Secretary shall annually adjust the income level necessary to qualify an applicant for the zero expected family contribution. The income level shall be adjusted according to increases in the Consumer Price Index, as defined in section 1087rr(f) of this title.
In this section:
The term “dislocated worker” has the meaning given the term in section 2801 of title 29.
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—
(A) the supplemental security income program under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.);
(B) the supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);
(C) 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.);
(D) 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.);
(E) the special supplemental nutrition program for women, infants, and children established by section 1786 of title 42; and
(F) other programs identified by the Secretary.
(Pub. L. 89–329, title IV, §479, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1472; amended Pub. L. 100–50, §14(23)–(25), June 3, 1987, 101 Stat. 352; Pub. L. 100–369, §7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102–26, §11, Apr. 9, 1991, 105 Stat. 129; Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 604; Pub. L. 103–208, §2(g)(10)–(15), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–244, title IV, §477, Oct. 7, 1998, 112 Stat. 1731; Pub. L. 109–171, title VIII, §8018(a), Feb. 8, 2006, 120 Stat. 174; Pub. L. 110–84, title VI, §602(a), Sept. 27, 2007, 121 Stat. 804; Pub. L. 110–234, title IV, §4002(b)(1)(A), (B), (2)(N), May 22, 2008, 122 Stat. 1095–1097; Pub. L. 110–246, §4(a), title IV, §4002(b)(1)(A), (B), (2)(N), June 18, 2008, 122 Stat. 1664, 1857, 1858; Pub. L. 111–39, title IV, §406(a)(4), July 1, 2009, 123 Stat. 1948; Pub. L. 112–74, div. F, title III, §309(b), Dec. 23, 2011, 125 Stat. 1100.)
The Social Security Act, referred to in subsec. (d)(2)(A), (D), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Part A of title IV of the Act is classified generally to part A (§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 (§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 and Nutrition Act of 2008, referred to in subsec. (d)(2)(B), is Pub. L. 88–525, Aug. 31, 1964, 78 Stat. 703, which is classified generally to chapter 51 (§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)(2)(C), is act June 4, 1946, ch. 281, 60 Stat. 230, which is classified generally to chapter 13 (§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.
Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.
2011—Subsec. (c)(1)(B). Pub. L. 112–74, §309(b)(1), substituted “$23,000” for “$30,000”.
Subsec. (c)(2)(B). Pub. L. 112–74, §309(b)(2), substituted “$23,000” for “$30,000”.
2009—Subsec. (b)(1)(A)(i)(III). Pub. L. 111–39, §406(a)(4)(A)(i), amended subcl. (III) generally. Prior to amendment, subcl. (III) read as follows: “1 of whom is a dislocated worker; or”.
Subsec. (b)(1)(B)(i)(III). Pub. L. 111–39, §406(a)(4)(A)(ii), amended subcl. (III) generally. Prior to amendment, subcl. (III) read as follows: “1 of whom is a dislocated worker; or”.
Subsec. (c)(1)(A)(iii). Pub. L. 111–39, §406(a)(4)(B)(i), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “1 of whom is a dislocated worker; or”.
Subsec. (c)(2)(A)(iii). Pub. L. 111–39, §406(a)(4)(B)(ii), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “1 of whom is a dislocated worker; or”.
2008—Subsec. (d)(2). Pub. L. 110–246, §4002(b)(1)(A), (B), (2)(N), substituted “supplemental nutrition assistance program” for “food stamp program” and “Food and Nutrition Act of 2008” for “Food Stamp Act of 1977”.
2007—Subsec. (b)(1)(A)(i), (B)(i). Pub. L. 110–84, §602(a)(1), added subcl. (III), redesignated former subcl. (III) as (IV), and, in subcl. (IV), substituted “24-month” for “12-month”.
Subsec. (c). Pub. L. 110–84, §602(a)(2)(C), inserted at end of concluding provisions “The Secretary shall annually adjust the income level necessary to qualify an applicant for the zero expected family contribution. The income level shall be adjusted according to increases in the Consumer Price Index, as defined in section 1087rr(f) of this title.”
Subsec. (c)(1)(A). Pub. L. 110–84, §602(a)(2)(A)(i), added cl. (iii), redesignated former cl. (iii) as (iv), and, in cl. (iv), substituted “24-month” for “12-month”.
Subsec. (c)(1)(B). Pub. L. 110–84, §602(a)(2)(A)(ii), substituted “$30,000” for “$20,000”.
Subsec. (c)(2)(A). Pub. L. 110–84, §602(a)(2)(B)(i), added cl. (iii), redesignated former cl. (iii) as (iv), and, in cl. (iv), substituted “24-month” for “12-month”.
Subsec. (c)(2)(B). Pub. L. 110–84, §602(a)(2)(B)(ii), substituted “$30,000” for “$20,000”.
Subsec. (d). Pub. L. 110–84, §602(a)(3), substituted “Definitions” for “Definition of means-tested Federal benefit program” in heading, added par. (1), designated existing provisions as par. (2) and substituted “The term” for “In this section, the term” in introductory provisions, redesignated former pars. (1) to (6) as subpars. (A) to (F), respectively, of par. (2), and realigned margins.
2006—Subsec. (b)(1)(A)(i). Pub. L. 109–171, §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, §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, §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, §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, §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, §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, §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, §8018(a)(3), added subsec. (d).
1998—Subsec. (b)(3). Pub. L. 105–244, §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, §477(1)(B), struck out “or” at end.
Subsec. (b)(3)(B), (C). Pub. L. 105–244, §477(1)(C), (D), added subpar. (B) and redesignated former subpar. (B) as (C).
Subsec. (c)(1)(A). Pub. L. 105–244, §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, §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, §2(g)(10), inserted “of” after “(c)”.
Subsec. (b)(1)(B)(i). Pub. L. 103–208, §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, §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, §2(g)(14)(A), inserted “(including any prepared or electronic version of such form)” before “required”.
Subsec. (b)(3)(B). Pub. L. 103–208, §2(g)(14)(B), inserted “(including any prepared or electronic version of such return)” before “required”.
Subsec. (c)(1)(A). Pub. L. 103–208, §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, §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, §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, §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, §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, §14(24)(A), struck out “and State” after “Federal”.
Subsec. (b)(6). Pub. L. 100–50, §14(24)(B)–(D), added par. (6).
Subsec. (c). Pub. L. 100–50, §14(25), added subsec. (c).
Amendment by of Pub. L. 112–74 effective July 1, 2012, see section 309(g) of Pub. L. 112–74, set out as a note under section 1001 of this title.
Amendment by Pub. L. 111–39 effective as if enacted as part of amendments made by section 602(a) of Pub. L. 110–84 and effective July 1, 2009, see section 406(b)(2) of Pub. L. 111–39, set out as a note under section 1087mm of this title.
Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as otherwise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture.
Amendment by section 4002(b)(1)(A), (B), (2)(N) of Pub. L. 110–246 effective Oct. 1, 2008, see section 4407 of Pub. L. 110–246, set out as a note under section 1161 of Title 2, The Congress.
Pub. L. 110–84, title VI, §602(b), Sept. 27, 2007, 121 Stat. 805, provided that: “The amendments made by this section [amending this section] shall be effective on July 1, 2009.”
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. 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 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. 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.
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.
Pub. L. 109–171, title VIII, §8018(b), Feb. 8, 2006, 120 Stat. 175, provided that:
“(1)
“(2)
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, dental, or nursing home expenses not covered by insurance, unusually high child care or dependent care costs, recent unemployment of a family member or an independent student, a student or family member who is a dislocated worker (as defined in section 2801 of title 29), 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, a change in housing status that results in an individual being homeless (as defined in section 11302 of title 42), 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 (1) 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, or (2) to offer a dependent student financial assistance under section 1078–8 of this title or a Federal Direct Unsubsidized Stafford Loan without requiring the parents of such student to file the financial aid form prescribed under section 1090 of this title if the student financial aid administrator verifies that the parent or parents of such student have ended financial support of such student and refuse to file such form. No student or parent shall be charged a fee for collecting, processing, or delivering such supplementary information.
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.
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.
(Pub. L. 89–329, title IV, §479A, as added Pub. L. 100–50, §14(26), June 3, 1987, 101 Stat. 352; amended Pub. L. 101–239, title II, §2009, Dec. 19, 1989, 103 Stat. 2122; Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 605; Pub. L. 103–208, §2(g)(16), Dec. 20, 1993, 107 Stat. 2473; Pub. L. 105–244, title IV, §478, Oct. 7, 1998, 112 Stat. 1731; Pub. L. 110–84, title VI, §603(a), Sept. 27, 2007, 121 Stat. 805; Pub. L. 110–315, title IV, §472(a), Aug. 14, 2008, 122 Stat. 3269.)
A prior section 1087tt, Pub. L. 89–329, title IV, §479A, as added Pub. L. 99–498, title IV, §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.
2008—Subsec. (a). Pub. L. 110–315 substituted “medical, dental, or nursing home expenses” for “medical or dental expenses”, inserted “or dependent care” after “child care” and “student or” before “family member who is a dislocated worker”, and substituted “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 (1) 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, or (2) to offer a dependent student financial assistance under section 1078–8 of this title or a Federal Direct Unsubsidized Stafford Loan without requiring the parents of such student to file the financial aid form prescribed under section 1090 of this title if the student financial aid administrator verifies that the parent or parents of such student have ended financial support of such student and refuse to file such form.” for “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.”
2007—Subsec. (a). Pub. L. 110–84, in third sentence, substituted “family member or an independent student, a family member who is a dislocated worker (as defined in section 2801 of title 29), the number of parents” for “family member, the number of parents” and inserted “a change in housing status that results in an individual being homeless (as defined in section 11302 of title 42),” after “under section 1094 of this title,”.
1998—Subsec. (a). Pub. L. 105–244, §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, §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.”
Pub. L. 110–84, title VI, §603(b), Sept. 27, 2007, 121 Stat. 806, as amended by Pub. L. 110–315, title IV, §472(b), Aug. 14, 2008, 122 Stat. 3270, provided that: “The amendments made by this section [amending this section] shall take effect on the date of enactment of the Higher Education Opportunity Act [Aug. 14, 2008].”
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 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. 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.
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.
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.
(Pub. L. 89–329, title IV, §479B, as added Pub. L. 100–50, §14(27), June 3, 1987, 101 Stat. 353; amended Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 606.)
A prior section 1087uu, Pub. L. 89–329, title IV, §479B, as added Pub. L. 99–498, title IV, §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.
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.
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.
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.
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 Public Law 98–64 (25 U.S.C. 117a et seq.; 97 Stat. 365) (commonly known as the “Per Capita Act”) or the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1401 et seq.); and
(2) any income received by the student (and spouse) and student's parents under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) or the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721 et seq.).
(Pub. L. 89–329, title IV, §479C, as added Pub. L. 100–50, §14(27), June 3, 1987, 101 Stat. 353; amended Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 606; Pub. L. 111–39, title IV, §406(a)(5), July 1, 2009, 123 Stat. 1949.)
Public Law 98–64, referred to in par. (1), is Pub. L. 98–64, Aug. 2, 1983, 97 Stat. 365, commonly known as the Per Capita Act, 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 Indian Tribal Judgment Funds Use or Distribution Act, referred to in par. (1), is Pub. L. 93–134, Oct. 19, 1973, 87 Stat. 466, which is classified generally to chapter 16 (§1401 et seq.) of Title 25, Indians. For complete classification of this Act to the Code, see section 1401(c) of Title 25 and Tables.
The Alaska Native Claims Settlement Act, referred to in par. (2), is Pub. L. 92–203, Dec. 18, 1971, 85 Stat. 688, which is classified generally to chapter 33 (§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 of 1980, referred to in par. (2), is Pub. L. 96–420, Oct. 10, 1980, 94 Stat. 1785, which is classified generally to subchapter II (§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.
2009—Par. (1). Pub. L. 111–39, §406(a)(5)(A), substituted “under Public Law 98–64 (25 U.S.C. 117a et seq.; 97 Stat. 365) (commonly known as the ‘Per Capita Act’) or the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1401 et seq.); and” for “under the Per Capita Act or the Distribution of Judgment Funds Act; and”.
Par. (2). Pub. L. 111–39, §406(a)(5)(B), substituted “Alaska” for “Alaskan” and inserted “(43 U.S.C. 1601 et seq.)” after “Native Claims Settlement Act” and “of 1980 (25 U.S.C. 1721 et seq.)” after “Maine Indian Claims Settlement Act”.
1992—Pub. L. 102–325 amended section generally, reenacting provisions without change.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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.
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.
As used in this part:
(1)(A) Except as provided in subparagraph (B) and 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).
(B) Notwithstanding section 1087rr(a) of this title, the Secretary may provide for the use of data from the second preceding tax year when and to the extent necessary to carry out the simplification of applications (including simplification for a subset of applications) used for the estimation and determination of financial aid eligibility. Such simplification may include the sharing of data between the Internal Revenue Service and the Department, pursuant to the consent of the taxpayer.
(2) No portion of any student financial assistance received from any program by an individual, no portion of veterans’ education benefits received 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.), no portion of any tax credit taken under section 25A of title 26, and no distribution from any qualified education benefit described in subsection (f)(3) that is not subject to Federal income tax, 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 and part C of subchapter I of chapter 34 of title 42.
(1) The term “untaxed income and benefits” means—
(A) child support received;
(B) workman's compensation;
(C) veteran's benefits such as death pension, dependency, and indemnity compensation, but excluding veterans’ education benefits as defined in subsection (c);
(D) interest on tax-free bonds;
(E) 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), except that the value of on-base military housing or the value of basic allowance for housing determined under section 403(b) of title 37 received by the parents, in the case of a dependent student, or the student or student's spouse, in the case of an independent student, shall be excluded;
(F) cash support or any money paid on the student's behalf, except, for dependent students, funds provided by the student's parents;
(G) untaxed portion of pensions;
(H) payments to individual retirement accounts and Keogh accounts excluded from income for Federal income tax purposes; and
(I) any other untaxed income and benefits, such as Black Lung Benefits, Refugee Assistance, or 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.).
(2) The term “untaxed income and benefits” shall not include—
(A) the amount of additional child tax credit claimed for Federal income tax purposes;
(B) 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;
(C) the amount of earned income credit claimed for Federal income tax purposes;
(D) the amount of credit for Federal tax on special fuels claimed for Federal income tax purposes;
(E) the amount of foreign income excluded for purposes of Federal income taxes; or
(F) untaxed social security 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 benefits under the following provisions of law:
(A) Chapter 103 of title 10 (Senior Reserve Officers’ Training Corps).
(B) Chapter 106A of title 10 (Educational Assistance for Persons Enlisting for Active Duty).
(C) Chapter 1606 of title 10 (Selected Reserve Educational Assistance Program).
(D) Chapter 1607 of title 10 (Educational Assistance Program for Reserve Component Members Supporting Contingency Operations and Certain Other Operations).
(E) Chapter 30 of title 38 (All-Volunteer Force Educational Assistance Program, also known as the “Montgomery GI Bill—active duty”).
(F) Chapter 31 of title 38 (Training and Rehabilitation for Veterans with Service-Connected Disabilities).
(G) Chapter 32 of title 38 (Post-Vietnam Era Veterans’ Educational Assistance Program).
(H) Chapter 33 of title 38 (Post-9/11 Educational Assistance).
(I) Chapter 35 of title 38 (Survivors’ and Dependents’ Educational Assistance Program).
(J) Section 903 of the Department of Defense Authorization Act, 1981 (10 U.S.C. 2141 note) (Educational Assistance Pilot Program).
(K) Section 156(b) of the “Joint Resolution making further continuing appropriations and providing for productive employment for the fiscal year 1983, and for other purposes” (42 U.S.C. 402 note) (Restored Entitlement Program for Survivors, also known as “Quayle benefits”).
(L) The provisions of chapter 3 of title 37, related to subsistence allowances for members of the Reserve Officers Training Corps.
The term “independent”, when used with respect to a student, means any individual who—
(A) is 24 years of age or older by December 31 of the award year;
(B) is an orphan, in foster care, or a ward of the court, or was an orphan, in foster care, or a ward of the court at any time when the individual was 13 years of age or older;
(C) is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual's State of legal residence;
(D) 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;
(E) is a graduate or professional student;
(F) is a married individual;
(G) has legal dependents other than a spouse;
(H) has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth (as such terms are defined in section 725 of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11434a]), or as unaccompanied, at risk of homelessness, and self-supporting, by—
(i) a local educational agency homeless liaison, designated pursuant to section 722(g)(1)(J)(ii) of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11432(g)(1)(J)(ii)];
(ii) the director of a program funded under the Runaway and Homeless Youth Act [42 U.S.C. 5701 et seq.] or a designee of the director;
(iii) the director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11371 et seq.] (relating to emergency shelter grants) or a designee of the director; or
(iv) a financial aid administrator; or
(I) is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances.
A financial aid administrator may make a determination of independence under paragraph (1)(I) based upon a documented determination of independence that was previously made by another financial aid administrator under such paragraph in the same award year.
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 income earned from work under a cooperative education program offered by an institution of higher education;
(3) 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.];
(4) child support payments made by the student or parent;
(5) payments made and services provided under part E of title IV of the Social Security Act [42 U.S.C. 670 et seq.]; and
(6) special combat pay.
(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 be considered an asset of—
(A) the student if the student is an independent student; or
(B) the parent if the student is a dependent student, regardless of whether the owner of the account is the student or the parent.
(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.
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.
(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.
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.
(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 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.), but excluding veterans’ education benefits as defined in subsection (c).
(2) Notwithstanding paragraph (1), a tax credit taken under section 25A of title 26, or a distribution that is not includable in gross income under section 529 of such title, under another prepaid tuition plan offered by a State, or under a Coverdell education savings account under section 530 of such title, 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.
(4) Notwithstanding paragraph (1), special combat pay shall not be treated as estimated financial assistance for purposes of section 1087kk(3) of this title.
(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.
(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.
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.
The term “special combat pay” means pay received by a member of the Armed Forces because of exposure to a hazardous situation.
(Pub. L. 89–329, title IV, §480, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1472; amended Pub. L. 100–50, §14(28), June 3, 1987, 101 Stat. 353; Pub. L. 100–369, §7(b), July 18, 1988, 102 Stat. 837; Pub. L. 101–610, title I, §185(3), (4), Nov. 16, 1990, 104 Stat. 3168; Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 606; Pub. L. 103–82, title I, §102(c)(4), (5), Sept. 21, 1993, 107 Stat. 824; Pub. L. 103–208, §2(g)(17)–(20), Dec. 20, 1993, 107 Stat. 2474; Pub. L. 104–193, title I, §110(h)(2), Aug. 22, 1996, 110 Stat. 2172; Pub. L. 105–78, title VI, §609(j), (k), Nov. 13, 1997, 111 Stat. 1524; Pub. L. 105–244, title IV, §479, Oct. 7, 1998, 112 Stat. 1732; Pub. L. 105–277, div. A, §101(f) [title VIII, §405(d)(15)(B), (f)(12)(B)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–421, 2681–431; Pub. L. 109–171, title VIII, §8019, Feb. 8, 2006, 120 Stat. 176; Pub. L. 110–84, title VI, §604(a), Sept. 27, 2007, 121 Stat. 806; Pub. L. 110–153, §1(a), Dec. 21, 2007, 121 Stat. 1824; Pub. L. 110–315, title IV, §473(a)–(e), Aug. 14, 2008, 122 Stat. 3270, 3271; Pub. L. 111–39, title IV, §406(a)(6)–(8), July 1, 2009, 123 Stat. 1949, 1950.)
The National and Community Service Act of 1990, referred to in subsecs. (a)(2), (e)(3), and (j)(1), is Pub. L. 101–610, Nov. 16, 1990, 104 Stat. 3127, which is classified principally to chapter 129 (§12501 et seq.) of Title 42, The Public Health and Welfare. Title I of the Act enacted subchapter I (§12511 et seq.) of chapter 129 of Title 42 and amended this section and section 1070a–6 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.
The Workforce Investment Act of 1998, referred to in subsec. (b)(1)(I), is Pub. L. 105–220, Aug. 7, 1998, 112 Stat. 936. Title I of the Act is classified principally to chapter 30 (§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.
The Social Security Act, referred to in subsecs. (b)(2)(B) and (e)(5), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Parts A and E of title IV of the Act are classified generally to parts A (§601 et seq.) and E (§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.
Section 903 of the Department of Defense Authorization Act, 1981, referred to in subsec. (c)(2)(J), is section 903 of Pub. L. 96–342, which is set out as a note under section 2141 of Title 10, Armed Forces.
Section 156(b) of the “Joint Resolution making further continuing appropriations and providing for productive employment for the fiscal year 1983, and for other purposes”, referred to in subsec. (c)(2)(K), is section 156(b) of Pub. L. 97–377, which is set out as a note under section 402 of Title 42, The Public Health and Welfare.
The Runaway and Homeless Youth Act, referred to in subsec. (d)(1)(H)(ii), is title III of Pub. L. 93–415, Sept. 7, 1974, 88 Stat. 1129, which is classified generally to subchapter III (§5701 et seq.) of chapter 72 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 5601 of Title 42 and Tables.
The McKinney-Vento Homeless Assistance Act, referred to in subsec. (d)(1)(H)(iii), is Pub. L. 100–77, July 22, 1987, 101 Stat. 482. Subtitle B of title IV of the Act is classified generally to part B (§11371 et seq.) of subchapter IV of chapter 119 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 11301 of Title 42 and Tables.
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.
2009—Subsec. (a)(2). Pub. L. 111–39, §406(a)(6), substituted “12511” for “12571”.
Subsec. (c)(2). Pub. L. 111–39, §406(a)(7), substituted “benefits under the following provisions of law” for “the following” in introductory provisions, added subpars. (A) to (L), and struck out former subpars. (A) to (J) which listed, respectively, the following provisions of law: title 10, chapter 2; title 10, chapter 106; title 10, chapter 107; title 37, chapter 2; title 38, chapter 30; title 38, chapter 31; title 38, chapter 32; title 38, chapter 35; Public Law 97–376, section 156; and Public Law 96–342, section 903.
Subsec. (j)(1). Pub. L. 111–39, §406(a)(8), substituted “12511” for “12571”.
2008—Subsec. (a)(1). Pub. L. 110–315, §473(a)(1), designated existing provisions as subpar. (A), inserted “subparagraph (B) and” after “provided in”, and added subpar. (B).
Subsec. (a)(2). Pub. L. 110–315, §473(a)(2), inserted “no portion of veterans’ education benefits received by an individual,” after “any program by an individual,”.
Subsec. (b)(1)(E). Pub. L. 110–315, §473(b), inserted “, except that the value of on-base military housing or the value of basic allowance for housing determined under section 403(b) of title 37 received by the parents, in the case of a dependent student, or the student or student's spouse, in the case of an independent student, shall be excluded” before semicolon.
Subsec. (d)(1)(B), (C). Pub. L. 110–315, §473(c), added subpars. (B) and (C) and struck out former subpars. (B) and (C) which read as follows:
“(B) is an orphan, in foster care, or a ward of the court, at any time when the individual is 13 years of age or older;
“(C) is an emancipated minor or is in legal guardianship as determined by a court of competent jurisdiction in the individual's State of legal residence;”.
Subsec. (e)(2) to (6). Pub. L. 110–315, §473(d), added par. (2) and redesignated former pars. (2) to (5) as (3) to (6), respectively.
Subsec. (j)(1). Pub. L. 110–315, §473(e), struck out “veterans’ education benefits as defined in subsection (c) of this section, and” before “national service educational awards” and inserted “, but excluding veterans’ education benefits as defined in subsection (c)” before period at end.
2007—Subsec. (a)(2). Pub. L. 110–84, §604(a)(1), substituted “no portion of any” for “and no portion of any” and inserted “and no distribution from any qualified education benefit described in subsection (f)(3) that is not subject to Federal income tax,” after “section 25A of title 26,”.
Subsec. (b). Pub. L. 110–84, §604(a)(2), added subsec. (b) and struck out former subsec. (b) which defined “untaxed income and benefits”.
Subsec. (b)(2). Pub. L. 110–153 added par. (2) and struck out former par. (2) which read as follows: “The term ‘untaxed income and benefits’ shall not include the amount of additional child tax credit claimed for Federal income tax purposes.”
Subsec. (d). Pub. L. 110–84, §604(a)(3)(A), (B), designated existing provisions as par. (1), inserted par. heading, redesignated former pars. (1), (2), (3) to (6), and (7) as subpars. (A), (B), (D) to (G), and (I), respectively, and realigned margins.
Subsec. (d)(1)(B), (C). Pub. L. 110–84, §604(a)(3)(C), added subpars. (B) and (C) and struck out former subpar. (B) which read as follows: “is an orphan or ward of the court or was a ward of the court until the individual reached the age of 18;”.
Subsec. (d)(1)(H). Pub. L. 110–84, §604(a)(3)(D), (E), added subpar. (H).
Subsec. (d)(2). Pub. L. 110–84, §604(a)(3)(F), added par. (2).
Subsec. (e)(5). Pub. L. 110–84, §604(a)(4), added par. (5).
Subsec. (f)(3). Pub. L. 110–84, §604(a)(5), added par. (3) and struck out former par. (3) which read as follows: “A qualified education benefit shall not be considered an asset of a student for purposes of section 1087oo of this title.”
Subsec. (j)(2). Pub. L. 110–84, §604(a)(6)(A), inserted “, or a distribution that is not includable in gross income under section 529 of such title, under another prepaid tuition plan offered by a State, or under a Coverdell education savings account under section 530 of such title,” after “title 26”.
Subsec. (j)(4). Pub. L. 110–84, §604(a)(6)(B), added par. (4).
Subsec. (n). Pub. L. 110–84, §604(a)(7), added subsec. (n).
2006—Subsec. (d)(3). Pub. L. 109–171, §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, §8019(b), inserted “qualified education benefits (except as provided in paragraph (3)),” after “tax shelters,”.
Subsec. (f)(2)(C). Pub. L. 109–171, §8019(c), added subpar. (C).
Subsec. (f)(3) to (5). Pub. L. 109–171, §8019(d), added pars. (3) to (5).
Subsec. (j). Pub. L. 109–171, §8019(e)(1), struck out “; tuition prepayment plans” at end of heading.
Subsec. (j)(2), (3). Pub. L. 109–171, §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, §101(f) [title VIII, §405(f)(12)(B)], struck out “Job Training Partnership Act noneducational benefits or” after “railroad retirement benefits, or”.
Pub. L. 105–277, §101(f) [title VIII, §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, §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, §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, §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, §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, §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, §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, §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, §2(g)(19), realigned margin. See Codification note above.
Pub. L. 103–82, §102(c)(5), added par. (3).
Subsecs. (k) to (m). Pub. L. 103–208, §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, §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, §185(3), added par. (3).
1988—Subsec. (i). Pub. L. 100–369 added subsec. (i).
1987—Subsec. (a)(1). Pub. L. 100–50, §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, §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, §14(28)(D), added par. (4).
Subsecs. (b), (c). Pub. L. 100–50, §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, §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, §14(28)(G), added subsecs. (f) to (h).
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 110–315, title IV, §473(f), Aug. 14, 2008, 122 Stat. 3271, as amended by Pub. L. 111–39, title IV, §406(c), July 1, 2009, 123 Stat. 1950, provided that: “The amendments made by this section [amending this section] shall take effect on July 1, 2010, except that the amendments made in subsection (e) [amending this section] shall take effect on July 1, 2009.”
Pub. L. 110–153, §1(b), Dec. 21, 2007, 121 Stat. 1824, provided that: “This section [amending this section] and the amendment made by this section shall take effect on July 1, 2009.”
Pub. L. 110–84, title VI, §604(b), Sept. 27, 2007, 121 Stat. 808, provided that: “The amendments made by this section [amending this section] shall be effective on July 1, 2009.”
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. 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, §405(d)(15)(B)] of Pub. L. 105–277 effective Oct. 21, 1998, and amendment by section 101(f) [title VIII, §405(f)(12)(B)] of Pub. L. 105–277 effective July 1, 2000, see section 101(f) [title VIII, §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. 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.
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.
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.
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.
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.
Section 406(b)(5), formerly section 406(b)(4), of Pub. L. 99–498, renumbered Pub. L. 100–50, §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.]
This part was originally added as part E of title IV of Pub. L. 89–329 by Pub. L. 90–575, title I, §151, Oct. 16, 1968, 82 Stat. 1032, and subsequently redesignated part F of said title IV by Pub. L. 92–318, title I, §137(b), June 23, 1972, 86 Stat. 273, and then part G of said title IV by Pub. L. 99–498, title IV, §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, §§461 to 464 and 469, as added by Pub. L. 90–575, title I, §§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, §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.
(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 and that measures program length in credit hours or clock hours.
(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.
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, any State, or any private, for-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.
For purposes of parts B, C, and D of this subchapter:
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.
The term “military operation” means a contingency operation as such term is defined in section 101(a)(13) of title 10.
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.
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.
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.
For purposes of this subchapter and part C of subchapter I of chapter 34 of title 42, the term “consumer reporting agency” has the meaning given the term “consumer reporting agency that compiles and maintains files on consumers on a nationwide basis” in Section 1 1681a(p) of title 15.
For purposes of parts B, C, and D, the term “educational service agency” has the meaning given the term in section 7801 of this title.
(Pub. L. 89–329, title IV, §481, as added Pub. L. 99–498, title IV, §407(a), Oct. 17, 1986, 100 Stat. 1476; amended Pub. L. 100–50, §15(1), June 3, 1987, 101 Stat. 355; Pub. L. 101–239, title II, §2007(b), (c), Dec. 19, 1989, 103 Stat. 2120, 2121; Pub. L. 101–508, title III, §3005(b), Nov. 5, 1990, 104 Stat. 1388–28; Pub. L. 102–26, §2(a)(2), (3), (d)(2)(A), Apr. 9, 1991, 105 Stat. 123, 124; Pub. L. 102–325, title IV, §481, July 23, 1992, 106 Stat. 609; Pub. L. 103–208, §2(h)(1)–(6), Dec. 20, 1993, 107 Stat. 2475, 2476; Pub. L. 105–216, §12, July 29, 1998, 112 Stat. 908; Pub. L. 105–244, title I, §101(c), Oct. 7, 1998, 112 Stat. 1617; Pub. L. 109–171, title VIII, §§8007(d), 8020(a), (b), Feb. 8, 2006, 120 Stat. 161, 177; Pub. L. 110–315, title IV, §481, Aug. 14, 2008, 122 Stat. 3271; Pub. L. 111–39, title IV, §407(b)(1), July 1, 2009, 123 Stat. 1950.)
A prior section 1088, Pub. L. 89–329, title IV, §481, as added Pub. L. 96–374, title IV, §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, §491, formerly §461, as added Pub. L. 90–575, title I, §151, Oct. 16, 1968, 82 Stat. 1032, renumbered §491 and amended Pub. L. 92–318, title I, §§131(c), 137(b), title X, §1001(c)(3), June 23, 1972, 86 Stat. 259, 272, 381; amended Pub. L. 95–180, §1(b), Nov. 15, 1977, 91 Stat. 1372; Pub. L. 95–566, §6, Nov. 1, 1978, 92 Stat. 2403; Pub. L. 96–49, §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.
2009—Subsec. (c). Pub. L. 111–39 substituted “any State, or any private, for-profit or nonprofit organization,” for “or any State, or private, profit or nonprofit organization” in introductory provisions.
2008—Subsec. (a)(2)(B). Pub. L. 110–315, §481(1), inserted “and that measures program length in credit hours or clock hours” after “baccalaureate degree”.
Subsecs. (e), (f). Pub. L. 110–315, §481(2), added subsecs. (e) and (f).
2006—Subsec. (a)(2). Pub. L. 109–171, §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, §8020(b), added pars. (3) and (4).
Subsec. (d). Pub. L. 109–171, §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, §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, §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, §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, §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, §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, §2(h)(6), substituted “individual, or any State,” for “State” in introductory provisions.
1992—Pub. L. 102–325, §481(a), amended section catchline.
Subsec. (a). Pub. L. 102–325, §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, §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, §481(b)(1), substituted “an eligible program” for “not less than a 6-month program”.
Subsec. (b)(4). Pub. L. 102–325, §481(b)(2), substituted “pursuant to part G of this subchapter,” for “for this purpose, and”.
Subsec. (b)(5), (6). Pub. L. 102–325, §481(b)(3), substituted “years, and” for “years.” in cl. (5) and added cl. (6).
Subsec. (c)(1). Pub. L. 102–325, §481(c), substituted “an eligible program” for “not less than a six-month program”.
Subsec. (d). Pub. L. 102–325, §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, §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, §481(f), added subsec. (f).
1991—Subsec. (b). Pub. L. 102–26, §2(d)(2)(A), repealed Pub. L. 101–508, §3005(b). See 1990 Amendment note below.
Pub. L. 102–26, §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, §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, §2(d)(2)(A). See Construction of 1991 Amendment note below.
1989—Subsec. (a)(1). Pub. L. 101–239, §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, §2007(c), added par. (3).
Subsec. (e). Pub. L. 101–239, §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”.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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 all loans under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq., 42 U.S.C. 2751 et seq.), see section 8007(f) of Pub. L. 109–171, set out as a note under section 1078 of this title.
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.
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 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 (§§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.”
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.
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.
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.
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.
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.”
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, §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.
1 So in original. Probably should not be capitalized.
Notwithstanding any other provision of this chapter and part C of subchapter I of chapter 34 of title 42, 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.
(Pub. L. 89–329, title IV, §481A, as added Pub. L. 103–382, title III, §360(a), Oct. 20, 1994, 108 Stat. 3969.)
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, §492, formerly §462, as added Pub. L. 90–575, title I, §151, Oct. 16, 1968, 82 Stat. 1032; renumbered §492, Pub. L. 92–318, title I, §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, §493, formerly §463, as added Pub. L. 90–575, title I, §152, Oct. 16, 1968, 82 Stat. 1033; renumbered §493, Pub. L. 92–318, title I, §137(b), June 23, 1972, 86 Stat. 272; amended Pub. L. 94–482, title I, §131(a), Oct. 12, 1976, 90 Stat. 2147; Pub. L. 95–43, §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, §493A, as added Pub. L. 94–482, title I, §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, §493B, as added Pub. L. 94–482, title I, §131(b), Oct. 12, 1976, 90 Stat. 2149, related to student aid information services.
Section 1088b–3, Pub. L. 89–329, title IV, §493C, as added Pub. L. 94–482, title I, §131(b), Oct. 12, 1976, 90 Stat. 2149, related to the student financial assistance training program.
Section 1088c, Pub. L. 89–329, title IV, §494, formerly §464, as added Pub. L. 90–575, title I, §152, Oct. 16, 1968, 82 Stat. 1033; renumbered §494 and amended Pub. L. 92–318, title I, §§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, §495, as added Pub. L. 92–318, title I, §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, §496, as added Pub. L. 92–318, title I, §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, §497, as added Pub. L. 92–318, title I, §139B(a), June 23, 1972, 86 Stat. 281; amended Pub. L. 94–482, title I, §132, Oct. 12, 1976, 90 Stat. 2150; Pub. L. 95–566, §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, §497A, as added Pub. L. 94–482, title I, §133(a), Oct. 12, 1976, 90 Stat. 2150; amended Pub. L. 95–43, §1(a)(41), June 15, 1977, 91 Stat. 217; Pub. L. 95–561, title XII, §1231(b), Nov. 1, 1978, 92 Stat. 2346, related to fiscal eligibility of institutions.
Section 1088g, Pub. L. 89–329, title IV, §498, as added Pub. L. 92–318, title I, §139C(a), June 23, 1972, 86 Stat. 282, related to requirement of an affidavit of educational purpose.
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.”
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, updates, and notices pursuant to sections 1087rr and 1090(a)(5) of this title published in the Federal Register;
(C) by June 1: final modifications, updates, and notices pursuant to sections 1087rr and 1090(a)(5) 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.
With respect to any funds reallocated under section 1070b–3(d) of this title, section 2752(d) of title 42, or section 1087bb(i) 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.
(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.
The Secretary shall notify the authorizing committees 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.
Prior to the beginning of each award year, the Secretary shall provide to institutions of higher education a list of all the reports and disclosures required under this chapter and part C of subchapter I of chapter 34 of title 42. The list shall include—
(1) the date each report or disclosure is required to be completed and to be submitted, made available, or disseminated;
(2) the required recipients of each report or disclosure;
(3) any required method for transmittal or dissemination of each report or disclosure;
(4) a description of the content of each report or disclosure sufficient to allow the institution to identify the appropriate individuals to be assigned the responsibility for such report or disclosure;
(5) references to the statutory authority, applicable regulations, and current guidance issued by the Secretary regarding each report or disclosure; and
(6) any other information which is pertinent to the content or distribution of the report or disclosure.
(Pub. L. 89–329, title IV, §482, as added Pub. L. 99–498, title IV, §407(a), Oct. 17, 1986, 100 Stat. 1477; amended Pub. L. 100–50, §15(2), June 3, 1987, 101 Stat. 355; Pub. L. 102–325, title IV, §482, July 23, 1992, 106 Stat. 612; Pub. L. 103–208, §2(h)(7), Dec. 20, 1993, 107 Stat. 2476; Pub. L. 104–66, title I, §1042(b), Dec. 21, 1995, 109 Stat. 715; Pub. L. 105–244, title IV, §481, Oct. 7, 1998, 112 Stat. 1732; Pub. L. 110–315, title I, §103(b)(9), title IV, §482(a), Aug. 14, 2008, 122 Stat. 3089, 3271; Pub. L. 111–39, title IV, §407(b)(2), July 1, 2009, 123 Stat. 1950.)
A prior section 1089, Pub. L. 89–329, title IV, §482, as added Pub. L. 96–374, title IV, §451(a), Oct. 3, 1980, 94 Stat. 1445; amended Pub. L. 97–35, title V, §533(a)(1), (2), (b), Aug. 13, 1981, 95 Stat. 453; Pub. L. 99–272, title XVI, §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, §499, formerly §469, as added Pub. L. 90–575, title I, §151, Oct. 16, 1968, 82 Stat. 1032; amended Pub. L. 91–230, title IV, §401(h)(4), Apr. 13, 1970, 84 Stat. 174; renumbered Pub. L. 92–318, title I, §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.
2009—Subsec. (b). Pub. L. 111–39 substituted “section 1070b–3(d) of this title, section 2752(d) of title 42, or section 1087bb(i) of this title” for “section 1070b–3(e) of this title, section 2752(e) of title 42, or section 1087bb(j) of this title”.
2008—Subsec. (a)(1)(B), (C). Pub. L. 110–315, §482(a)(1), added subpars. (B) and (C) and struck out former subpars. (B) and (C) which read as follows:
“(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;”.
Subsec. (d). Pub. L. 110–315, §103(b)(9), substituted “authorizing committees” for “Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives”.
Subsec. (e). Pub. L. 110–315, §482(a)(2), added subsec. (e).
1998—Subsec. (a)(3), (4). Pub. L. 105–244, §481(a), added pars. (3) and (4).
Subsec. (c). Pub. L. 105–244, §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, §482(b)(1), substituted “section 1087rr” for “sections 1070a–5 and 1087rr”.
Subsec. (b). Pub. L. 102–325, §482(b)(2), substituted “subpart 3” for “subpart 2”.
Subsec. (c). Pub. L. 102–325, §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.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 110–315, title IV, §482(b), Aug. 14, 2008, 122 Stat. 3272, provided that: “The amendment made by subsection (a)(1) [amending this section] shall take effect on July 1, 2010.”
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. 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. 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.
Pub. L. 112–74, div. F, title III, §309(h), Dec. 23, 2011, 125 Stat. 1103, provided that: “Sections 482(c) and 492 of the HEA (20 U.S.C. 1089(c), 1098a) shall not apply to the amendments made by this section [amending sections 1001, 1070a, 1078, 1087–1, 1087ss, and 1091 of this title and enacting provisions set out as notes under sections 1001, 1078, and 1091 of this title], or to any regulations promulgated under those amendments.”
Pub. L. 112–25, title V, §504, Aug. 2, 2011, 125 Stat. 267, provided that: “Sections 482(c) and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089(c), 1098a) shall not apply to the amendments made by this title [amending sections 1070a and 1087e of this title], or to any regulations promulgated under those amendments.”
Pub. L. 112–10, div. B, title VIII, §1860(c), Apr. 15, 2011, 125 Stat. 170, provided that: “Sections 482(c) and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089(c), 1098a) shall not apply to the amendments made by subsection (a)(2) [amending section 1070a of this title], or to any regulations promulgated under those amendments.”
Pub. L. 111–39, title IV, §409, July 1, 2009, 123 Stat. 1953, provided that: “Sections 482 and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089, 1098a) shall not apply to the amendments made by this title [see Tables for classification], or to any regulations promulgated under those amendments.”
Pub. L. 110–315, title IV, §402(b), Aug. 14, 2008, 122 Stat. 3191, provided that: “Sections 482 and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089, 1098a) shall not apply to the amendments made by subsection (a) [amending section 1070a–1 of this title], or to any regulations promulgated under those amendments.”
Pub. L. 110–227, §11, May 7, 2008, 122 Stat. 752, as amended by Pub. L. 110–315, title IV, §402(c)(1), Aug. 14, 2008, 122 Stat. 3191, provided that: “Sections 482 and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089, 1098a) shall not apply to amendments made by this Act [see Tables for classification], or to any regulations promulgated under such amendments.”
[Pub. L. 110–315, title IV, §402(c)(2), Aug. 14, 2008, 122 Stat. 3191, provided that: “The amendment made by paragraph (1) [amending section 11 of Pub. L. 110–227, set out above] shall take effect as if enacted as part of the Ensuring Continued Access to Student Loans Act of 2008 [Pub. L. 110–227].”]
Pub. L. 97–301, §4, Oct. 13, 1982, 96 Stat. 1400, as amended by Pub. L. 98–79, §4(a), Aug. 15, 1983, 97 Stat. 480; Pub. L. 98–511, title VII, §707(3), Oct. 19, 1984, 98 Stat. 2407; Pub. L. 99–498, title IV, §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, §408(b), Oct. 17, 1986, 100 Stat. 1495, eff. with respect to any academic year beginning on or after July 1, 1988.
Pub. L. 97–301, §6, Oct. 13, 1982, 96 Stat. 1400, as amended by Pub. L. 98–79, §4(a), Aug. 15, 1983, 97 Stat. 481; Pub. L. 98–516, title VII, §707(3), Oct. 19, 1984, 98 Stat. 2407; Pub. L. 99–498, title IV, §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, §408(b), Oct. 17, 1986, 100 Stat. 1495, eff. with respect to any academic year beginning on or after July 1, 1988.
The Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance, shall produce, distribute, and process free of charge common financial reporting forms as described in this subsection to be used for application and reapplication 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 forms shall be made available to applicants in both paper and electronic formats and shall be referred to as the “Free Application for Federal Student Aid” or the “FAFSA”. The Secretary shall work to make the FAFSA consumer-friendly and to make questions on the FAFSA easy for students and families to read and understand, and shall ensure that the FAFSA is available in formats accessible to individuals with disabilities.
The Secretary shall develop, make available, and process—
(i) a paper version of EZ FAFSA, as described in subparagraph (B); and
(ii) a paper version of the other forms described in this subsection, in accordance with subparagraph (C), for any applicant who does not meet the requirements of or does not wish to use the process described in subparagraph (B).
The Secretary shall develop and use, after appropriate field testing, a simplified paper form, to be known as the EZ FAFSA, to be used for applicants meeting the requirements of subsection (b) or (c) of section 1087ss of this title.
The EZ FAFSA shall permit an applicant to submit, for financial assistance purposes, only the data elements required to make a determination of whether the applicant meets the requirements under subsection (b) or (c) of section 1087ss of this title.
The Secretary shall include on the EZ FAFSA such data items as may be necessary to award State financial assistance, as provided under paragraph (5), except that the Secretary shall not include a State's data if that State does not permit the State's resident applicants to use the EZ FAFSA for State assistance.
The provisions of paragraph (6) shall apply to the EZ FAFSA, and the data collected by means of the EZ FAFSA shall be available to institutions of higher education, guaranty agencies, and States in accordance with paragraph (10).
The Secretary shall make all efforts to encourage all applicants to utilize the electronic version of the forms described in paragraph (3).
The Secretary shall maintain a version of the paper forms described in subparagraphs (A) and (B) in a printable electronic file that is easily portable, accessible, and downloadable to students on the same website used to provide students with the electronic version of the forms described in paragraph (3).
The Secretary shall provide a printed copy of the full paper version of FAFSA upon request.
The Secretary shall maintain data, and periodically report to Congress, on the impact of the digital divide on students completing applications for aid under this subchapter and part C of subchapter I of chapter 34 of title 42. The Secretary shall report on the steps taken to eliminate the digital divide and reduce production of the paper form described in subparagraph (A). The Secretary's report shall specifically address the impact of the digital divide on the following student populations:
(I) Independent students.
(II) Traditionally underrepresented students.
(III) Dependent students.
The Secretary shall produce, distribute, and process forms in electronic format to meet the requirements of paragraph (1). The Secretary shall develop an electronic version of the forms for applicants who do not meet the requirements of subsection (b) or (c) of section 1087ss of this title.
The Secretary shall develop and use a simplified electronic version of the form to be used by applicants meeting the requirements under subsection (b) or (c) of section 1087ss of this title.
The simplified electronic version of the forms shall permit an applicant to submit, for financial assistance purposes, only the data elements required to make a determination of whether the applicant meets the requirements under subsection (b) or (c) of section 1087ss of this title.
Nothing in this subsection shall be construed to prohibit the use of the forms developed by the Secretary pursuant to this paragraph by an eligible institution, eligible lender, guaranty agency, State grant agency, private computer software provider, a consortium thereof, or such other entities as the Secretary may designate.
The Secretary shall include on the electronic version of the forms such items as may be necessary to determine eligibility for State financial assistance, as provided under paragraph (5), except that the Secretary shall not require an applicant to enter data pursuant to this subparagraph that are required by any State other than the applicant's State of residence.
The data collected by means of the simplified electronic version of the forms shall be available to institutions of higher education, guaranty agencies, and States in accordance with paragraph (10).
The Secretary shall ensure that data collection under this paragraph complies with section 552a of title 5 and that any entity using the electronic version of the forms developed by the Secretary pursuant to this paragraph 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 forms. Data collected by such electronic version of the forms 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 electronic version of the forms 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, except as may be permitted under this subchapter and part C of subchapter I of chapter 34 of title 42.
Notwithstanding any other provision of this chapter and part C of subchapter I of chapter 34 of title 42, the Secretary may continue to permit an electronic version of the form under this paragraph to be submitted without a signature, if a signature is subsequently submitted by the applicant or if the applicant uses a personal identification number provided by the Secretary under subparagraph (G).
The Secretary may continue to assign to an applicant a personal identification number—
(i) to enable the applicant to use such number as a signature for purposes of completing an electronic version of a form developed under this paragraph; and
(ii) for any purpose determined by the Secretary to enable the Secretary to carry out this subchapter and part C of subchapter I of chapter 34 of title 42.
The Secretary shall continue to work with the Commissioner of Social Security to minimize the time required for an applicant to obtain a personal identification number when applying for aid under this subchapter and part C of subchapter I of chapter 34 of title 42 through an electronic version of a form developed under this paragraph.
The Secretary shall continue to streamline reapplication forms and processes for an applicant who applies for financial assistance under this subchapter and part C of subchapter I of chapter 34 of title 42 in the next succeeding academic year subsequent to an academic year for which such applicant applied for financial assistance under this subchapter and part C of subchapter I of chapter 34 of title 42.
The Secretary shall determine, in cooperation with States, institutions of higher education, agencies, and organizations involved in student financial assistance, the data elements that may be transferred from the previous academic year's application and those data elements that shall be updated.
Nothing in this subchapter and part C of subchapter I of chapter 34 of title 42 shall be construed as limiting the authority of the Secretary to reduce the number of data elements required of reapplicants.
Applicants determined to have a zero family contribution pursuant to section 1087ss(c) of this title shall not be required to provide any financial data in a reapplication form, except data that are necessary to determine eligibility under such section.
Of the number of data elements on the FAFSA used for the 2009–2010 award year, the Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance and consistent with efforts under subsection (c), shall continue to reduce the number of such data elements required to be entered by all applicants, with the goal of reducing such number by 50 percent.
The Secretary shall submit a report on the process of this reduction to each of the authorizing committees by June 30, 2011.
Except as provided in paragraphs (2)(B)(iii), (3)(B), and (4)(A)(ii), the Secretary shall include on the forms developed under this subsection, such State-specific data items as the Secretary determines are necessary to meet State requirements for need-based State aid. Such items shall be selected in consultation with State agencies in order to assist in the awarding of State financial assistance in accordance with the terms of this subsection. The number of such data items shall not be less than the number included on the form for the 2008–2009 award year unless a State notifies the Secretary that the State no longer requires those data items for the distribution of State need-based aid.
The Secretary shall conduct an annual review to determine—
(i) which data items each State requires to award need-based State aid; and
(ii) if the State will permit an applicant to file a form described in paragraph (2)(B) or (3)(B).
Beginning with the forms developed under paragraphs (2)(B) and (3)(B) for the award year 2010–2011, the Secretary shall publish on an annual basis a notice in the Federal Register requiring State agencies to inform the Secretary—
(i) if the State agency is unable to permit applicants to utilize the simplified forms described in paragraphs (2)(B) and (3)(B); and
(ii) of the State-specific nonfinancial data that the State agency requires for delivery of State need-based financial aid.
The Secretary shall encourage States to take such steps as are necessary to encourage the use of simplified forms under this subsection, including those forms described in paragraphs (2)(B) and (3)(B), for applicants who meet the requirements of subsection (b) or (c) of section 1087ss of this title.
If a State does not permit an applicant to file a form described in paragraph (2)(B) or (3)(B) for purposes of determining eligibility for State need-based financial aid, the Secretary may determine that State-specific questions for such State will not be included on a form described in paragraph (2)(B) or (3)(B). If the Secretary makes such determination, the Secretary shall advise the State of the Secretary's determination.
If a State does not respond to the Secretary's request for information under subparagraph (B), the Secretary shall—
(i) permit residents of that State to complete simplified forms under paragraphs (2)(B) and (3)(B); and
(ii) not require any resident of such State to complete any data items previously required by that State under this section.
The Secretary shall, to the extent practicable, not require applicants to complete any financial or nonfinancial data items that are not required—
(i) by the applicant's State; or
(ii) by the Secretary.
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 be determined only by using a form developed by the Secretary under this subsection. Such forms shall be produced, distributed, and processed by the Secretary, and no parent or student shall be charged a fee by the Secretary, a contractor, a third-party servicer or private software provider, or any other public or private entity for the collection, processing, or delivery of financial aid through the use of such forms. No data collected on a form for which a fee is charged shall be used to complete the form prescribed under this section, except that a Federal or State income tax form prepared by a paid income tax preparer or preparer service for the primary purpose of filing a Federal or State income tax return may be used to complete the form prescribed under this section.
No person, commercial entity, or other entity may request, obtain, or utilize an applicant's personal identification number assigned under paragraph (3)(G) for purposes of submitting a form developed under this subsection on an applicant's behalf.
The Secretary shall enable students to submit forms developed under this subsection and initiate the processing of such forms under this subsection, as early as practicable prior to January 1 of the student's planned year of enrollment.
The Secretary shall continue to—
(A) permit applicants to enter data in such forms as described in this subsection in the years prior to enrollment in order to obtain a non-binding estimate of the applicant's family contribution (as defined in section 1087mm of this title);
(B) permit applicants to update information submitted on forms described in this subsection, without needing to re-enter previously submitted information;
(C) develop a means to inform applicants, in the years prior to enrollment, of student aid options for individuals in similar financial situations;
(D) develop a means to provide a clear and conspicuous notice that the applicant's expected family contribution is subject to change and may not reflect the final expected family contribution used to determine Federal student financial aid award amounts under this subchapter and part C of subchapter I of chapter 34 of title 42; and
(E) consult with representatives of States, institutions of higher education, and other individuals with experience or expertise in student financial assistance application processes in making updates to forms used to provide early estimates under this paragraph.
Institutions of higher education, guaranty agencies, and States shall receive, without charge, the data collected by the Secretary using a form developed under this subsection 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.
To the extent practicable and in a timely manner, the Secretary shall provide, to private organizations and consortia that develop software used by institutions of higher education 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) to be 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 multiple 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.
The Secretary is authorized to include space on the forms developed under this subsection 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.
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 authorizing committees at least 45 days prior to their effective date.
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 or other appropriate provider of technical assistance and information on postsecondary educational services for individuals with disabilities, including the National Technical Assistance Center under section 1140q of this title. The Secretary shall continue to implement, to the extent practicable, a toll-free telephone based system to permit applicants who meet the requirements of subsection (b) or (c) of section 1087ss of this title to submit an application over such system.
Notwithstanding any provision of this chapter, an applicant may use a preparer for consultative or preparation services for the completion of a form developed under subsection (a) if the preparer satisfies the requirements of this subsection.
If an applicant uses a preparer for consultative or preparation services for the completion of a form developed under subsection (a), and for which a fee is charged, the preparer shall—
(A) include, at the time the form is submitted to the Department, the name, address or employer's address, social security number or employer identification number, and organizational affiliation of the preparer on the applicant's form; and
(B) be subject to the same penalties as an applicant for purposely giving false or misleading information in the application.
A preparer that provides consultative or preparation services pursuant to this subsection shall—
(A) clearly inform each individual upon initial contact, including contact through the Internet or by telephone, that the FAFSA and EZ FAFSA are free forms that may be completed without professional assistance via paper or electronic version of the forms that are provided by the Secretary;
(B) include in any advertising clear and conspicuous information that the FAFSA and EZ FAFSA are free forms that may be completed without professional assistance via paper or electronic version of the forms that are provided by the Secretary;
(C) if advertising or providing any information on a website, or if providing services through a website, include on the website a link to the website that provides the electronic version of the forms developed under subsection (a); and
(D) not produce, use, or disseminate any other form for the purpose of applying for Federal student financial aid other than the form developed by the Secretary under subsection (a).
Nothing in this chapter and part C of subchapter I of chapter 34 of title 42 shall be construed to limit preparers of the forms required under this subchapter and part C of subchapter I of chapter 34 of title 42 that meet the requirements of this subsection from collecting source information from a student or parent, including Internal Revenue Service tax forms, in providing consultative and preparation services in completing the forms.
The purpose of the demonstration program under this subsection is to measure the benefits, in terms of student aspirations and plans to attend an institution of higher education, and any adverse effects, in terms of program costs, integrity, distribution, and delivery of aid under this subchapter and part C of subchapter I of chapter 34 of title 42, of implementing an early application system for all dependent students that allows dependent students to apply for financial aid using information from two years prior to the year of enrollment. Additional objectives associated with implementation of the demonstration program are the following:
(A) To measure the feasibility of enabling dependent students to apply for Federal, State, and institutional financial aid in their junior year of secondary school, using information from two years prior to the year of enrollment, by completing any of the forms under this subsection.
(B) To identify whether receiving final financial aid award estimates not later than the fall of the senior year of secondary school provides students with additional time to compete for the limited resources available for State and institutional financial aid and positively impacts the college aspirations and plans of these students.
(C) To measure the impact of using income information from the years prior to enrollment on—
(i) eligibility for financial aid under this subchapter and part C of subchapter I of chapter 34 of title 42 and for other State and institutional aid; and
(ii) the cost of financial aid programs under this subchapter and part C of subchapter I of chapter 34 of title 42.
(D) To effectively evaluate the benefits and adverse effects of the demonstration program on program costs, integrity, distribution, and delivery of financial aid.
Not later than two years after August 14, 2008, the Secretary shall implement an early application demonstration program enabling dependent students who wish to participate in the program—
(A) to complete an application under this subsection during the academic year that is two years prior to the year such students plan to enroll in an institution of higher education; and
(B) based on the application described in subparagraph (A), to obtain, not later than one year prior to the year of the students’ planned enrollment, information on eligibility for Federal Pell Grants, Federal student loans under this subchapter and part C of subchapter I of chapter 34 of title 42, and State and institutional financial aid for the student's first year of enrollment in the institution of higher education.
For all dependent students selected for participation in the demonstration program who submit a completed FAFSA, or, as appropriate, an EZ FAFSA, two years prior to the year such students plan to enroll in an institution of higher education, the Secretary shall, not later than one year prior to the year of such planned enrollment—
(A) provide each student who completes an early application with an estimated determination of such student's—
(i) expected family contribution for the first year of the student's enrollment in an institution of higher education; and
(ii) Federal Pell Grant award for the first such year, based on the Federal Pell Grant amount, determined under section 1070a(b)(2)(A) of this title, for which a student is eligible at the time of application; and
(B) remind the students of the need to update the students’ information during the calendar year of enrollment using the expedited reapplication process provided for in subsection (a)(4)(A).
The Secretary shall include as participants in the demonstration program—
(A) States selected through the application process described in paragraph (5);
(B) institutions of higher education within the selected States that are interested in participating in the demonstration program, and that can make estimates or commitments of institutional student financial aid, as appropriate, to students the year before the students’ planned enrollment date; and
(C) secondary schools within the selected States that are interested in participating in the demonstration program, and that can commit resources to—
(i) advertising the availability of the program;
(ii) identifying students who might be interested in participating in the program;
(iii) encouraging such students to apply; and
(iv) participating in the evaluation of the program.
Each State that is interested in participating in the demonstration program shall submit an application to the Secretary at such time, in such form, and containing such information as the Secretary shall require. The application shall include—
(A) information on the amount of the State's need-based student financial assistance available, and the eligibility criteria for receiving such assistance;
(B) a commitment to make, not later than the year before the dependent students participating in the demonstration program plan to enroll in an institution of higher education, an estimate of the award of State financial aid to such dependent students;
(C) a plan for recruiting institutions of higher education and secondary schools with different demographic characteristics to participate in the program;
(D) a plan for selecting institutions of higher education and secondary schools to participate in the program that—
(i) demonstrate a commitment to encouraging students to submit a FAFSA, or, as appropriate, an EZ FAFSA, two years before the students’ planned date of enrollment in an institution of higher education;
(ii) serve different populations of students;
(iii) in the case of institutions of higher education—
(I) to the extent possible, are of varying types and sectors; and
(II) commit to making, not later than the year prior to the year that dependent students participating in the demonstration program plan to enroll in the institution—
(aa) estimated institutional awards to participating dependent students; and
(bb) estimated grants or other financial aid available under this subchapter and part C of subchapter I of chapter 34 of title 42 (including supplemental grants under subpart 3 of part A of this subchapter), for all participating dependent students, along with information on State awards, as provided to the institution by the State;
(E) a commitment to participate in the evaluation conducted by the Secretary; and
(F) such other information as the Secretary may require.
A financial aid administrator at an institution of higher education participating in a demonstration program under this subsection may use the discretion provided under section 1087tt of this title as necessary for students participating in the demonstration program.
The Secretary is authorized to waive, for an institution of higher education participating in the demonstration program, any requirements under 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 make the demonstration program unworkable, except that the Secretary shall not waive any provisions with respect to the maximum award amounts for grants and loans under this subchapter and part C of subchapter I of chapter 34 of title 42.
The Secretary shall make appropriate efforts to notify States of the demonstration program under this subsection. Upon determination of participating States, the Secretary shall continue to make efforts to notify institutions of higher education and dependent students within participating States of the opportunity to participate in the demonstration program and of the participation requirements.
The Secretary shall conduct a rigorous evaluation of the demonstration program to measure the program's benefits and adverse effects, as the benefits and effects relate to the purpose and objectives of the program described in paragraph (1). In conducting the evaluation, the Secretary shall—
(A) determine whether receiving financial aid estimates one year prior to the year in which the student plans to enroll in an institution of higher education, has a positive impact on the higher education aspirations and plans of such student;
(B) measure the extent to which using a student's income information from the year that is two years prior to the student's planned enrollment date had an impact on the ability of States and institutions of higher education to make financial aid awards and commitments;
(C) determine what operational changes are required to implement the program on a larger scale;
(D) identify any changes to Federal law that are necessary to implement the program on a permanent basis;
(E) identify the benefits and adverse effects of providing early estimates on program costs, program operations, program integrity, award amounts, distribution, and delivery of aid; and
(F) examine the extent to which estimated awards differ from actual awards made to students participating in the program.
The Secretary shall consult, as appropriate, with the Advisory Committee on Student Financial Assistance established under section 1098 of this title on the design, implementation, and evaluation of the demonstration program.
The Secretary shall continue to examine—
(A) how the Internal Revenue Service can provide to the Secretary income and other data needed to compute an expected family contribution for taxpayers and dependents of taxpayers, and when in the application cycle the data can be made available;
(B) whether data provided by the Internal Revenue Service can be used to—
(i) prepopulate the electronic version of the FAFSA with student and parent taxpayer data; or
(ii) generate an expected family contribution without additional action on the part of the student and taxpayer; and
(C) whether the data elements collected on the FAFSA that are needed to determine eligibility for student aid, or to administer the Federal student financial aid programs under this subchapter and part C of subchapter I of chapter 34 of title 42, but are not needed to compute an expected family contribution, such as information regarding the student's citizenship or permanent residency status, registration for selective service, or driver's license number, can be reduced without adverse effects.
Not later than 90 days after August 14, 2008, the Secretary shall provide a written report to the authorizing committees on the work the Department has done with the Secretary of the Treasury regarding—
(A) how the expected family contribution of a student can be calculated using substantially less income and asset information than was used on March 31, 2008;
(B) the extent to which the reduced income and asset information will result in a redistribution of Federal grants and subsidized loans under this subchapter and part C of subchapter I of chapter 34 of title 42, State aid, or institutional aid, or in a change in the composition of the group of recipients of such aid, and the amount of such redistribution;
(C) how the alternative approaches for calculating the expected family contribution will—
(i) rely mainly, in the case of students and parents who file income tax returns, on information available on the 1040, 1040EZ, and 1040A; and
(ii) include formulas for adjusting income or asset information to produce similar results to the existing approach with less data;
(D) how the Internal Revenue Service can provide to the Secretary of Education income and other data needed to compute an expected family contribution for taxpayers and dependents of taxpayers, and when in the application cycle the data can be made available;
(E) whether data provided by the Internal Revenue Service can be used to—
(i) prepopulate the electronic version of the FAFSA with student and parent taxpayer data; or
(ii) generate an expected family contribution without additional action on the part of the student and taxpayer;
(F) the extent to which the use of income data from two years prior to a student's planned enrollment date will change the expected family contribution computed in accordance with part E, and potential adjustments to the need analysis formula that will minimize the change; and
(G) the extent to which the data elements collected on the FAFSA on March 31, 2008, that are needed to determine eligibility for student aid or to administer the Federal student financial aid programs, but are not needed to compute an expected family contribution, such as information regarding the student's citizenship or permanent residency status, registration for selective service, or driver's license number, can be reduced without adverse effects.
Not later than 90 days after August 14, 2008, the Comptroller General shall convene a study group the membership of which shall include the Secretary of Education, the Secretary of the Treasury, the Director of the Office of Management and Budget, the Director of the Congressional Budget Office, representatives of institutions of higher education with expertise in Federal and State financial aid assistance, State chief executive officers of higher education with a demonstrated commitment to simplifying the FAFSA, and such other individuals as the Comptroller General and the Secretary of Education may designate.
The Comptroller General, in consultation with the study group convened under subparagraph (A) shall—
(i) review and build on the work of the Secretary of Education and the Secretary of the Treasury, and individuals with expertise in analysis of financial need, to assess alternative approaches for calculating the expected family contribution under the statutory need analysis formula in effect on the day before August 14, 2008, and under a new calculation that will use substantially less income and asset information than was used for the 2008–2009 FAFSA;
(ii) conduct an additional analysis if necessary; and
(iii) make recommendations to the authorizing committees.
The objectives of the study required under subparagraph (B) are—
(i) to determine methods to shorten the FAFSA and make the FAFSA easier and less time-consuming to complete, thereby increasing higher education access for low-income students;
(ii) to identify changes to the statutory need analysis formula that will be necessary to reduce the amount of financial information students and families need to provide to receive a determination of eligibility for student financial aid without causing significant redistribution of Federal grants and subsidized loans under this subchapter and part C of subchapter I of chapter 34 of title 42; and
(iii) to review State and institutional needs and uses for data collected on the FAFSA, and to determine the best means of addressing such needs in the case of modification of the FAFSA as described in clause (i), or modification of the need analysis formula as described in clause (ii).
The study required under subparagraph (B) shall examine—
(i) with respect to simplification of the financial aid application process using the statutory requirements for need analysis—
(I) additional steps that can be taken to simplify the financial aid application process for students who (or, in the case of dependent students, whose parents) are not required to file a Federal income tax return for the prior taxable year;
(II) information on State use of information provided on the FAFSA, including—
(aa) whether a State uses, as of the time of the study, or can use, a student's expected family contribution based on data from two years prior to the student's planned enrollment date;
(bb) the extent to which States and institutions will accept the data provided by the Internal Revenue Service to prepopulate the electronic version of the FAFSA to determine the distribution of State and institutional student financial aid funds;
(cc) what data are used by States, as of the time of the study, to determine eligibility for State student financial aid, and whether the data are used for merit- or need-based aid;
(dd) whether State data are required by State law, State regulations, or policy directives; and
(ee) the extent to which any State-specific information requirements can be met by completion of a State application linked to the electronic version of the FAFSA; and
(III) information on institutional needs, including the extent to which institutions of higher education are already using supplemental forms to collect additional data from students and their families to determine eligibility for institutional funds; and
(ii) ways to reduce the amount of financial information students and families need to provide to receive a determination of eligibility for student financial aid, taking into account—
(I) the amount of redistribution of Federal grants and subsidized loans under this subchapter and part C of subchapter I of chapter 34 of title 42 caused by such a reduction, and the benefits to be gained by having an application process that will be easier for students and their families;
(II) students and families who do not file income tax returns;
(III) the extent to which the full array of income and asset information collected on the FAFSA, as of the time of the study, plays an important role in the awarding of need-based State financial aid, and whether the State can use an expected family contribution generated by the FAFSA, instead of income and asset information or a calculation with reduced data elements, to support determinations of eligibility for such State aid programs and, if not, what additional information will be needed or what changes to the FAFSA will be required; and
(IV) information on institutional needs, including the extent to which institutions of higher education are already using supplemental forms to collect additional data from students and their families to determine eligibility for institutional funds; and
(V) changes to this chapter and part C of subchapter I of chapter 34 of title 42 or other laws that will be required to implement a modified need analysis system.
The Secretary shall consult with the Advisory Committee on Student Financial Assistance established under section 1098 of this title as appropriate in carrying out this subsection.
The Secretary shall prepare and submit to the authorizing committees—
(i) not later than one year after August 14, 2008, an interim report on the progress of the study required under paragraph (3) that includes any preliminary recommendations by the study group established under such paragraph; and
(ii) not later than two years after August 14, 2008, a final report on the results of the study required under paragraph (3) that includes recommendations by the study group established under such paragraph.
The Secretary shall report to the authorizing committees, from time to time, on the progress of the simplification efforts under this subsection.
The Secretary shall utilize savings accrued by moving more applicants to the electronic version of the forms described in subsection (a)(3) to improve access to the electronic version of the forms described in such subsection for applicants meeting the requirements of subsection (b) or (c) of section 1087ss of this title.
The Secretary shall disclose, on the form notifying a student of the student's expected family contribution, that the student may, on a case-by-case basis, qualify for an adjustment under section 1087tt of this title to the cost of attendance or the values of the data items required to calculate the expected contribution for the student or parent. Such disclosure shall specify—
(1) the special circumstances under which a student or family member may qualify for such adjustment; and
(2) additional information regarding the steps a student or family member may take in order to seek an adjustment under section 1087tt of this title.
(Pub. L. 89–329, title IV, §483, as added Pub. L. 99–498, title IV, §407(a), Oct. 17, 1986, 100 Stat. 1478; amended Pub. L. 100–50, §15(3)–(6), June 3, 1987, 101 Stat. 356; Pub. L. 102–325, title IV, §483, July 23, 1992, 106 Stat. 612; Pub. L. 103–208, §2(h)(8)–(12), Dec. 20, 1993, 107 Stat. 2476; Pub. L. 105–244, title IV, §482, Oct. 7, 1998, 112 Stat. 1733; Pub. L. 110–315, title I, §103(b)(10), title IV, §483(a), Aug. 14, 2008, 122 Stat. 3090, 3272; Pub. L. 111–39, title IV, §407(b)(3), July 1, 2009, 123 Stat. 1950; Pub. L. 111–152, title II, §2101(b)(4), Mar. 30, 2010, 124 Stat. 1073.)
A prior section 1090, Pub. L. 89–329, title IV, §483, as added Pub. L. 96–374, title IV, §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.
2010—Subsec. (e)(3)(A)(ii). Pub. L. 111–152 substituted “based on the Federal Pell Grant amount, determined under section 1070a(b)(2)(A) of this title, for which a student is eligible at the time of application” for “based on the maximum Federal Pell Grant award at the time of application”.
2009—Subsec. (a)(3)(C). Pub. L. 111–39, §407(b)(3)(A), inserted “that” after “except”.
Subsec. (e)(8)(A). Pub. L. 111–39, §407(b)(3)(B), substituted “determine” for “identify”.
2008—Subsec. (a). Pub. L. 110–315, §483(a)(1), added pars. (1) to (12) and struck out former pars. (1) to (7), which related to forms required, charges for forms, distribution of data, contracts for collection and processing, electronic forms, third party servicers and private software providers, and parents’ social security numbers and birth dates.
Subsec. (b). Pub. L. 110–315, §483(a)(2), (3), redesignated subsec. (c) as (b) and struck out former subsec. (b) which related to streamlined reapplication process.
Subsec. (c). Pub. L. 110–315, §483(a)(4), substituted “or other appropriate provider of technical assistance and information on postsecondary educational services for individuals with disabilities, including the National Technical Assistance Center under section 1140q of this title. The Secretary shall continue to implement, to the extent practicable, a toll-free telephone based system to permit applicants who meet the requirements of subsection (b) or (c) of section 1087ss of this title to submit an application over such system” for “that is authorized under section 1485(d)(2)(C) of this title”.
Pub. L. 110–315, §483(a)(3), redesignated subsec. (d) as (c). Former subsec. (c) redesignated (b).
Pub. L. 110–315, §103(b)(10), substituted “authorizing committees” for “Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives”.
Subsec. (d). Pub. L. 110–315, §483(a)(5), added subsec. (d). Former subsec. (d) redesignated (c).
Subsec. (e). Pub. L. 110–315, §483(a)(2), (5), added subsec. (e) and struck out former subsec. (e). Prior to amendment, text read as follows: “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.”
Subsecs. (f) to (h). Pub. L. 110–315, §483(a)(5), added subsecs. (f) to (h).
1998—Subsec. (a). Pub. L. 105–244, §482(a)(1), substituted “form development” for “form” in heading.
Subsec. (a)(1). Pub. L. 105–244, §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, §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, §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, §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, §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, §482(a)(5), added pars. (5) to (7).
Subsec. (b)(1). Pub. L. 105–244, §482(b), struck out “, within 240 days after July 23, 1992,” after “The Secretary shall”.
Subsec. (c). Pub. L. 105–244, §482(c), substituted “and the Workforce” for “and Labor”.
Subsec. (d). Pub. L. 105–244, §482(d), substituted “section 1485(d)(2)(C)” for “section 1433(c)”.
Subsec. (f). Pub. L. 105–244, §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, §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, §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, §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, §2(h)(12), redesignated subsecs. (e) and (f) as (d) and (e), respectively.
Subsec. (f). Pub. L. 103–208, §2(h)(12), redesignated subsec. (g) as (f). Former subsec. (f) redesignated (e).
Pub. L. 103–208, §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, §2(h)(12), redesignated subsec. (g) as (f).
1992—Subsec. (a). Pub. L. 102–325, §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, §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, §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, §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, §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, §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, §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, §15(6), added subsec. (b) and redesignated former subsecs. (b) to (e) as (c) to (f), respectively.
Amendment by Pub. L. 111–152 effective July 1, 2010, see section 2101(c) of Pub. L. 111–152, set out as a note under section 1070a of this title.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
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. 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. 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.
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.
Pub. L. 111–39, title IV, §407(a), July 1, 2009, 123 Stat. 1950, provided that: “Notwithstanding any other provision of law, the Secretary of Education shall be required to carry out the requirements under the following provisions of section 483 of the Higher Education Act of 1965 (20 U.S.C. 1090) only for academic year 2010–2011 and subsequent academic years:
“(1) In subsection (a) of such section—
“(A) subparagraphs (A)(i) and (B) of paragraph (2);
“(B) in paragraph (3)—
“(i) the second sentence of subparagraph (A);
“(ii) clauses (i) and (ii) of subparagraph (B); and
“(iii) subparagraph (C);
“(C) paragraph (4)(A)(iv); and
“(D) paragraph (5)(E).
“(2) Subsection (h) of such section.”
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, 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;
(5) be a citizen or national of the United States, a permanent resident of the United States, or 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; 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.
(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, or under section 1078–8 of this title pursuant to an exercise of discretion under section 1087tt 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 (i) filed an application with the Pell Grant processor for such institution for such enrollment period, and (ii) 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 1 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.
(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.
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 have completed a secondary school education in a home school setting that is treated as a home school or private school under State law.
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.
(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.
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.
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.
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.
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.
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 (g)(4)(A)(i) of this section, was required to provide a reasonable opportunity to submit documentation, or
(3) because the institution, under subsection (g)(4)(B)(i) 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.
Notwithstanding subsection (h) 1 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) 1 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.
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.
A student enrolled in a course of instruction at an institution of higher education that is offered principally through distance education and leads to a recognized certificate, or recognized associate, recognized baccalaureate, or recognized graduate degree, conferred by such institution, shall not be considered to be enrolled in correspondence courses.
An institution of higher education referred to in subparagraph (A) shall not include an institution or school described in section 2302(3)(C) of this title.
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 distance education results in a substantially reduced cost of attendance to such student.
For award years beginning prior to July 1, 2008, the Secretary shall not take any compliance, disallowance, penalty, or other action based on a violation of this subsection 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.
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.
To enforce the Selective Service registration provisions of section 462(f) of title 50, Appendix, 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.
Nothing in this chapter and part C of subchapter I of chapter 34 of title 42 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.
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.
The Secretary, in cooperation with the Secretary of the Treasury, is authorized to obtain from the Internal Revenue Service such information reported on Federal income tax returns by applicants, or by any other person whose financial information is required to be provided on the Federal student financial aid application, as the Secretary determines is necessary for the purpose of—
(A) prepopulating the Federal student financial aid application described in section 1090 of this title; or
(B) verifying the information reported on such student financial aid applications.
The Secretary may require that applicants for financial assistance under this subchapter and part C of subchapter I of chapter 34 of title 42 provide a consent to the disclosure of the data described in paragraph (1) as a condition of the student receiving assistance under this subchapter and part C of subchapter I of chapter 34 of title 42. The parents of an applicant, in the case of a dependent student, or the spouse of an applicant, in the case of an applicant who is married but files separately, may also be required to provide consent as a condition of the student receiving assistance under this subchapter and part C of subchapter I of chapter 34 of title 42.
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 controlled substance: | Ineligibility period is: | |
| First offense | 1 year | |
| Second offense | 2 years | |
| Third offense | Indefinite. |
|
| The sale of a controlled substance: | Ineligibility period is: | |
| First offense | 2 years | |
| Second offense | Indefinite. | |
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;
(B) the student successfully passes two unannounced drug tests conducted by a drug rehabilitation program that complies with such criteria as the Secretary shall prescribe in regulations for purposes of subparagraph (A)(i); or
(C) the conviction is reversed, set aside, or otherwise rendered nugatory.
In this subsection, the term “controlled substance” has the meaning given the term in section 802(6) of title 21.
In this subsection the terms “comprehensive transition and postsecondary program for students with intellectual disabilities” and “student with an intellectual disability” have the meanings given the terms in section 1140 of this title.
Notwithstanding subsections (a), (c), and (d), in order to receive any grant or work assistance under section 1070a of this title, subpart 3 of part A of this subchapter, or part C of subchapter I of chapter 34 of title 42, a student with an intellectual disability shall—
(A) be enrolled or accepted for enrollment in a comprehensive transition and postsecondary program for students with intellectual disabilities at an institution of higher education;
(B) be maintaining satisfactory progress in the program as determined by the institution, in accordance with standards established by the institution; and
(C) meet the requirements of paragraphs (3), (4), (5), and (6) of subsection (a).
Notwithstanding any other provision of law unless such provision is enacted with specific reference to this section, the Secretary is authorized to waive any statutory provision applicable to the student financial assistance programs under section 1070a of this title, subpart 3 of part A of this subchapter, or part C of subchapter I of chapter 34 of title 42 (other than a provision of part E of this subchapter related to such a program), or any institutional eligibility provisions of this subchapter and part C of subchapter I of chapter 34 of title 42, as the Secretary determines necessary to ensure that programs enrolling students with intellectual disabilities otherwise determined to be eligible under this subsection may receive such financial assistance.
Notwithstanding regulations applicable to grant or work assistance awards made under section 1070a of this title, subpart 3 of part A of this subchapter, and part C of subchapter I of chapter 34 of title 42 (other than a regulation under part E of this subchapter related to such an award), including with respect to eligible programs, instructional time, credit status, and enrollment status as described in section 1088 of this title, the Secretary shall promulgate regulations allowing programs enrolling students with intellectual disabilities otherwise determined to be eligible under this subsection to receive such awards.
Within one year of August 14, 2008, the Secretary shall analyze data from the FAFSA containing information regarding the number, characteristics, and circumstances of students denied Federal student aid based on a drug conviction while receiving Federal aid.
The results from the analysis of such information shall be made available on a continuous basis via the Department website and the Digest of Education Statistics.
The data analyzed under this subsection shall be updated at the beginning of each award year and at least one additional time during such award year.
The Secretary shall prepare and submit to the authorizing committees, in each fiscal year, a report describing the results obtained by the establishment and operation of the data system authorized by this subsection.
(Pub. L. 89–329, title IV, §484, as added Pub. L. 99–498, title IV, §407(a), Oct. 17, 1986, 100 Stat. 1479; amended Pub. L. 99–603, title I, §121(a)(3), Nov. 6, 1986, 100 Stat. 3388; Pub. L. 100–50, §15(7)–(9), June 3, 1987, 101 Stat. 356, 357; Pub. L. 100–369, §§1, 2, 6, July 18, 1988, 102 Stat. 835, 836; Pub. L. 100–525, §2(g), Oct. 24, 1988, 102 Stat. 2611; Pub. L. 101–508, title III, §3005(a), Nov. 5, 1990, 104 Stat. 1388–27; Pub. L. 102–26, §2(b), (c)(2), (d)(2)(A), Apr. 9, 1991, 105 Stat. 123, 124; Pub. L. 102–73, title VIII, §801(a), July 25, 1991, 105 Stat. 359; Pub. L. 102–325, title IV, §484(a), (b)(1), (c)–(h), July 23, 1992, 106 Stat. 615–619; Pub. L. 103–208, §2(h)(13)–(25), Dec. 20, 1993, 107 Stat. 2476, 2477; Pub. L. 103–382, title III, §360A, Oct. 20, 1994, 108 Stat. 3969; Pub. L. 104–208, div. C, title V, §507(b), Sept. 30, 1996, 110 Stat. 3009–673; Pub. L. 105–244, title IV, §483(a)–(f)(1), Oct. 7, 1998, 112 Stat. 1735, 1736; Pub. L. 109–171, title VIII, §§8020(c), 8021, Feb. 8, 2006, 120 Stat. 178; Pub. L. 109–270, §2(c)(2), Aug. 12, 2006, 120 Stat. 746; Pub. L. 110–315, title IV, §485(a), Aug. 14, 2008, 122 Stat. 3287; Pub. L. 111–39, title IV, §407(b)(4), July 1, 2009, 123 Stat. 1950; Pub. L. 112–74, div. F, title III, §309(c)(1), Dec. 23, 2011, 125 Stat. 1100.)
Section 1078–1 of this title, referred to in subsec. (b)(2), was repealed by Pub. L. 103–66, title IV, §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, §418, Oct. 7, 1998, 112 Stat. 1691.
Subsection (h) of this section, referred to in subsec. (i), was redesignated subsec. (g) of this section by Pub. L. 103–208, §2(h)(25), Dec. 20, 1993, 107 Stat. 2477.
A prior section 1091, Pub. L. 89–329, title IV, §484, as added Pub. L. 96–374, title IV, §451(a), Oct. 3, 1980, 94 Stat. 1448; Pub. L. 99–272, title XVI, §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, §501, Nov. 8, 1965, 79 Stat. 1254; Pub. L. 90–35, §2(c), June 29, 1967, 81 Stat. 82; Pub. L. 92–318, title I, §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, §151(a)(2), (b), Oct. 12, 1976, 90 Stat. 2151.
2011—Subsec. (d). Pub. L. 112–74 struck out “meet one of the following standards:” after “the student shall”, substituted “have completed” for “(3) The student has completed”, and struck out pars. (1), (2) and (4), which required students to take an independently administered examination, required a State process, or required an institution of higher education, respectively, to determine ability of students to benefit from education or training.
2009—Subsec. (a)(4). Pub. L. 111–39, §407(b)(4)(A), substituted “certification,” for “certification,,” in introductory provisions.
Subsec. (b)(1)(B). Pub. L. 111–39, §407(b)(4)(B), substituted “have (i)” for “have (A)” and “and (ii)” for “and (B)”.
Subsec. (f)(1). Pub. L. 111–39, §407(b)(4)(C), amended references in original which appear in text as references to part B, part C, or part D, resulting in text identical to that after execution of Pub. L. 103–208, §2(h)(18). See 1993 Amendment note for subsec. (g) below.
Subsec. (h)(2), (3). Pub. L. 111–39, §407(b)(4)(D), substituted “(g)(4)(A)(i)” for “(h)(4)(A)(i)” in par. (2) and “(g)(4)(B)(i)” for “(h)(4)(B)(i)” in par. (3).
Subsec. (n). Pub. L. 111–39, §407(b)(4)(E), substituted “section 462(f) of title 50, Appendix” for “section 1113 of Public Law 97–252”.
2008—Subsec. (a)(4)(B). Pub. L. 110–315, §485(a)(1)(A), substituted “number;” for “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;”.
Subsec. (a)(5). Pub. L. 110–315, §485(a)(1)(B), inserted “or” after “a permanent resident of the United States,” and substituted “citizen or permanent resident;” for “citizen or permanent resident, a citizen of any one of the Freely Associated States;”.
Subsec. (b)(1). Pub. L. 110–315, §485(a)(2), inserted “, or under section 1078–8 of this title pursuant to an exercise of discretion under section 1087tt of this title” after “1078–3 of this title”.
Subsec. (d)(4). Pub. L. 110–315, §485(a)(3), added par. (4).
Subsec. (j). Pub. L. 110–315, §485(a)(4), struck out subsec. (j). Text read as follows: “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.”
Subsec. (l). Pub. L. 110–315, §485(a)(5), added subsec. (l) and struck out former subsec. (l) which related to courses offered through telecommunications.
Subsec. (q). Pub. L. 110–315, §485(a)(6), added subsec. (q) and struck out former subsec. (q) which related to verification of income data.
Subsec. (r)(2)(B), (C). Pub. L. 110–315, §485(a)(7), added subpar. (B) and redesignated former subpar. (B) as (C).
Subsec. (s). Pub. L. 110–315, §485(a)(8), added subsec. (s).
Subsec. (t). Pub. L. 110–315, §485(a)(9), added subsec. (t).
2006—Subsec. (a)(6). Pub. L. 109–171, §8021(a), added par. (6).
Subsec. (l)(1)(A). Pub. L. 109–171, §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, §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, §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, §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, §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, §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, §483(b), struck out “either” after “shall meet” in introductory provisions and added par. (3).
Subsec. (j). Pub. L. 105–244, §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, §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, §483(e), added subsec. (q).
Subsec. (r). Pub. L. 105–244, §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, §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, §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, §2(h)(15), added subpar. (C).
Subsec. (b)(3). Pub. L. 103–208, §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, §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, §2(h)(25), redesignated subsec. (h) as (g). Former subsec. (g) redesignated (f).
Pub. L. 103–208, §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, §2(h)(25), redesignated subsec. (i) as (h). Former subsec. (h) redesignated (g).
Pub. L. 103–208, §2(h)(19), substituted “constitute” for “constitutes” in introductory provisions of par. (4)(B).
Subsec. (i). Pub. L. 103–208, §2(h)(25), redesignated subsec. (j) as (i). Former subsec. (i) redesignated (h).
Pub. L. 103–208, §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, §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, §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, §2(h)(25), redesignated subsecs. (k) to (n) as (j) to (m), respectively. Former subsec. (j) redesignated (i).
Subsec. (n). Pub. L. 103–208, §2(h)(25), redesignated subsec. (o) as (n). Former subsec. (n) redesignated (m).
Pub. L. 103–208, §2(h)(23), substituted “parts B, C,” for “part B, C,”.
Subsecs. (o), (p). Pub. L. 103–208, §2(h)(25), redesignated subsecs. (p) and (q) as (o) and (p), respectively. Former subsec. (o) redesignated (n).
Subsec. (q). Pub. L. 103–208, §2(h)(25), redesignated subsec. (q) as (p).
Pub. L. 103–208, §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, §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, §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, §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, §484(b)(1)(B), added par. (5).
Subsec. (d). Pub. L. 102–325, §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, §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, §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, §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, §484(h), made technical amendment to directory language of Pub. L. 102–73, §801(a). See 1991 Amendment note below.
Subsecs. (l) to (q). Pub. L. 102–325, §484(g), added subsecs. (l) to (q).
1991—Subsec. (a)(1). Pub. L. 102–26, §2(c)(2), inserted before semicolon at end “, and not be enrolled in an elementary or secondary school”.
Subsec. (d). Pub. L. 102–26, §2(d)(2)(A), repealed Pub. L. 101–508, §3005(a). See 1990 Amendment note below.
Pub. L. 102–26, §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, §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, §2(d)(2)(A). See Construction of 1991 Amendment note below.
1988—Subsec. (a)(1). Pub. L. 100–369, §6(1), substituted “subsections (b)(3) and (b)(4)” for “subsection (b)(2)”.
Subsec. (b)(1). Pub. L. 100–369, §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, §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, §2, added par. (2) and redesignated former par. (2) as (3).
Subsec. (b)(4). Pub. L. 100–369, §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, §15(7)(A), inserted “, except as provided in subsection (b)(2) of this section” before semicolon at end.
Subsec. (b). Pub. L. 100–50, §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, §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, §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.
Pub. L. 112–74, div. F, title III, §309(c)(2), Dec. 23, 2011, 125 Stat. 1100, provided that: “The amendment made by paragraph (1) [amending this section] shall apply to students who first enroll in a program of study on or after July 1, 2012.”
Amendment by Pub. L. 112–74 effective July 1, 2012, see section 309(g) of Pub. L. 112–74, set out as a note under section 1001 of this title.
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
Pub. L. 110–315, title IV, §485(b), Aug. 14, 2008, 122 Stat. 3290, provided that: “The amendments made by subsection (a) [amending this section] shall take effect on July 1, 2010, except that the amendments made by paragraphs (3), (4), and (8) of such subsection shall take effect on the date of enactment of this Act [August 14, 2008].”
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 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, §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].”
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 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, §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.”
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.
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)
“(b)
“(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].”
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 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.
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.”
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.
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.
Section 1301 of Pub. L. 99–498, as amended by Pub. L. 100–50, §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, §6(a), Oct. 31, 1998, 112 Stat. 3127.
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, §6(a), Oct. 31, 1998, 112 Stat. 3127.
Pub. L. 90–575, title V, §507, Oct. 16, 1968, 82 Stat. 1063, as amended by Pub. L. 96–88, title III, §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.”
1 See References in Text note below.
(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.
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;
(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; and
(3) in collecting any obligation arising from a loan made under part D, an institution of higher education that has an agreement with the Secretary pursuant to section 1087cc(a) of this title shall not be subject to a defense raised by any borrower based on a claim of infancy.
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.
This section shall not apply in the case of a student who is deceased, or to a deceased student's estate or the estate of such student's family. If a student is deceased, then the student's estate or the estate of the student's family shall not be required to repay any financial assistance under this subchapter and part C of subchapter I of chapter 34 of title 42, including interest paid on the student's behalf, collection costs, or other charges specified in this subchapter and part C of subchapter I of chapter 34 of title 42.
(Pub. L. 89–329, title IV, §484A, as added Pub. L. 99–498, title IV, §407(a), Oct. 17, 1986, 100 Stat. 1482; amended Pub. L. 102–26, §3(a), Apr. 9, 1991, 105 Stat. 124; Pub. L. 105–244, title IV, §484, Oct. 7, 1998, 112 Stat. 1737; Pub. L. 110–315, title IV, §486, Aug. 14, 2008, 122 Stat. 3290.)
A prior section 1091a, Pub. L. 89–329, title IV, §484A, as added Pub. L. 99–272, title XVI, §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, §502, as added Pub. L. 90–35, §2(c), June 29, 1967, 81 Stat. 82; amended Pub. L. 91–230, title IV, §401(h)(4), title VIII, §802, Apr. 13, 1970, 84 Stat. 174, 190; Pub. L. 92–318, title I, §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, §151(a)(2), (b), Oct. 12, 1976, 90 Stat. 2151, effective Sept. 30, 1976.
2008—Subsec. (b)(3). Pub. L. 110–315, §486(1), added par. (3).
Subsec. (d). Pub. L. 110–315, §486(2), added subsec. (d).
1998—Pub. L. 105–244, §484(1), inserted “, and State court judgments” after “limitations” in section catchline.
Subsec. (c). Pub. L. 105–244, §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.
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.
Section 3(c) of Pub. L. 102–26, as amended by Pub. L. 102–325, title XV, §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].”
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.
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.
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).
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.
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.
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.
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.
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.
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.
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).
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.
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.
A student shall not be required to return amounts of $50 or less.
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.
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.
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.
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.
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.
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.
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.
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.
(Pub. L. 89–329, title IV, §484B, as added Pub. L. 102–325, title IV, §485(a), July 23, 1992, 106 Stat. 619; amended Pub. L. 103–208, §2(h)(26), (27), Dec. 20, 1993, 107 Stat. 2477; Pub. L. 105–244, title IV, §485, Oct. 7, 1998, 112 Stat. 1737; Pub. L. 109–66, §2, Sept. 21, 2005, 119 Stat. 1999; Pub. L. 109–67, §2, Sept. 21, 2005, 119 Stat. 2001; Pub. L. 109–171, title VIII, §8022, Feb. 8, 2006, 120 Stat. 178.)
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 (§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.
A prior section 1091b, Pub. L. 89–329, title V, §503, as added Pub. L. 90–35, §2(c), June 29, 1967, 81 Stat. 83; amended Pub. L. 92–318, title IV, §451(a), June 23, 1972, 86 Stat. 344, authorized the Commissioner to appraise and annually report on existing and future education personnel needs, prior to repeal, effective Sept. 30, 1976, by Pub. L. 94–482, title I, §151(a)(2), (b), Oct. 12, 1976, 90 Stat. 2151.
2006—Subsec. (a)(2)(A). Pub. L. 109–171, §8022(1), substituted “1 or more leaves of” for “a leave of” in introductory provisions.
Subsec. (a)(3)(B)(ii). Pub. L. 109–171, §8022(2), inserted “(as determined in accordance with subsection (d))” after “student has completed”.
Subsec. (a)(3)(C)(i). Pub. L. 109–171, §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, §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, §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, §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, §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, §2(h)(26), substituted “grant or loan assistance” for “grant, loan, or work assistance” in introductory provisions.
Subsec. (b)(3). Pub. L. 103–208, §2(h)(27), substituted “subsection (c) of this section” for “subsection (d) of this section”.
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. 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. 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.
In this section, the term “service in the uniformed services” means service (whether voluntary or involuntary) on active duty in the Armed Forces, including such service by a member of the National Guard or Reserve, for a period of more than 30 days under a call or order to active duty of more than 30 days.
A person who is a member of, applies to be a member of, performs, has performed, applies to perform, or has an obligation to perform, service in the uniformed services shall not be denied readmission to an institution of higher education on the basis of that membership, application for membership, performance of service, application for service, or obligation.
Any student whose absence from an institution of higher education is necessitated by reason of service in the uniformed services shall be entitled to readmission to the institution of higher education if—
(A) the student (or an appropriate officer of the Armed Forces or official of the Department of Defense) gives advance written or verbal notice of such service to the appropriate official at the institution of higher education;
(B) the cumulative length of the absence and of all previous absences from that institution of higher education by reason of service in the uniformed services does not exceed five years; and
(C) except as otherwise provided in this section, the student submits a notification of intent to reenroll in the institution of higher education in accordance with the provisions of paragraph (4).
No notice is required under paragraph (1)(A) if the giving of such notice is precluded by military necessity, such as—
(i) a mission, operation, exercise, or requirement that is classified; or
(ii) a pending or ongoing mission, operation, exercise, or requirement that may be compromised or otherwise adversely affected by public knowledge.
Any student (or an appropriate officer of the Armed Forces or official of the Department of Defense) who did not give advance written or verbal notice of service to the appropriate official at the institution of higher education in accordance with paragraph (1)(A) may meet the notice requirement by submitting, at the time the student seeks readmission, an attestation to the student's institution of higher education that the student performed service in the uniformed services that necessitated the student's absence from the institution of higher education.
This section shall apply to a student who is absent from an institution of higher education by reason of service in the uniformed services if such student's cumulative period of service in the Armed Forces (including the National Guard or Reserve), with respect to the institution of higher education for which a student seeks readmission, does not exceed five years, except that any such period of service shall not include any service—
(A) that is required, beyond five years, to complete an initial period of obligated service;
(B) during which such student was unable to obtain orders releasing such student from a period of service in the uniformed services before the expiration of such five-year period and such inability was through no fault of such student; or
(C) performed by a member of the Armed Forces (including the National Guard and Reserves) who is—
(i) ordered to or retained on active duty under section 688, 12301(a), 12301(g), 12302, 12304, or 12305 of title 10 or under section 331, 332, 359, 360, 367, or 712 of title 14;
(ii) ordered to or retained on active duty (other than for training) under any provision of law because of a war or national emergency declared by the President or the Congress, as determined by the Secretary concerned;
(iii) ordered to active duty (other than for training) in support, as determined by the Secretary concerned, of an operational mission for which personnel have been ordered to active duty under section 12304 of title 10;
(iv) ordered to active duty in support, as determined by the Secretary concerned, of a critical mission or requirement of the Armed Forces (including the National Guard or Reserve); or
(v) called into Federal service as a member of the National Guard under chapter 15 of title 10 or section 12406 of title 10.
Except as provided in subparagraph (B), a student referred to in subsection (a) shall, upon the completion of a period of service in the uniformed services, notify the institution of higher education of the student's intent to return to the institution not later than three years after the completion of the period of service.
A student who is hospitalized for or convalescing from an illness or injury incurred in or aggravated during the performance of service in the uniformed services shall notify the institution of higher education of the student's intent to return to the institution not later than two years after the end of the period that is necessary for recovery from such illness or injury.
A student who fails to apply for readmission within the period described in this section shall not automatically forfeit such eligibility for readmission to the institution of higher education, but shall be subject to the institution of higher education's established leave of absence policy and general practices.
A student who submits an application for readmission to an institution of higher education under this section shall provide to the institution of higher education documentation to establish that—
(i) the student has not exceeded the service limitations established under this section; and
(ii) the student's eligibility for readmission has not been terminated due to an exception in subsection (d).
An institution of higher education may not delay or attempt to avoid a readmission of a student under this section by demanding documentation that does not exist, or is not readily available, at the time of readmission.
A student who is readmitted to an institution of higher education under this section shall be readmitted with the same academic status as such student had when such student last attended the institution of higher education.
A student's eligibility for readmission to an institution of higher education under this section by reason of such student's service in the uniformed services terminates upon the occurrence of any of the following events:
(1) A separation of such person from the Armed Forces (including the National Guard and Reserves) with a dishonorable or bad conduct discharge.
(2) A dismissal of such person permitted under section 1161(a) of title 10.
(3) A dropping of such person from the rolls pursuant to section 1161(b) of title 10.
(Pub. L. 89–329, title IV, §484C, as added Pub. L. 110–315, title IV, §487, Aug. 14, 2008, 122 Stat. 3290.)
Prior sections 1091c to 1091f were repealed, effective Sept. 30, 1976, by Pub. L. 94–482, title I, §151(a)(2), (b), Oct. 12, 1976, 90 Stat. 2151.
Section 1091c, Pub. L. 89–329, title V, §504, as added Pub. L. 90–35, §2(c), June 29, 1967, 81 Stat. 83; amended Pub. L. 90–575, title II, §231(a), Oct. 16, 1968, 82 Stat. 1039; Pub. L. 92–318, title I, §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, §505, as added Pub. L. 90–35, §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, §506, as added Pub. L. 90–35, §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, §507, as added Pub. L. 90–35, §2(c), June 29, 1967, 81 Stat. 84, authorized employment of experts and consultants and set forth provisions for compensation and travel expenses.
(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 444 of the General Education Provisions Act [20 U.S.C. 1232g] (commonly known as the “Family Educational Rights and Privacy Act of 1974”), 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, (iii) the faculty and other instructional personnel, and (iv) any plans by the institution for improving the academic program of the institution;
(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 students with disabilities;
(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 of the loans that students receive under parts B, C, and D;
(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;
(O) the campus crime report prepared by the institution pursuant to subsection (f) of this section, including all required reporting categories;
(P) institutional policies and sanctions related to copyright infringement, including—
(i) an annual disclosure that explicitly informs students that unauthorized distribution of copyrighted material, including unauthorized peer-to-peer file sharing, may subject the students to civil and criminal liabilities;
(ii) a summary of the penalties for violation of Federal copyright laws; and
(iii) a description of the institution's policies with respect to unauthorized peer-to-peer file sharing, including disciplinary actions that are taken against students who engage in unauthorized distribution of copyrighted materials using the institution's information technology system;
(Q) student body diversity at the institution, including information on the percentage of enrolled, full-time students who—
(i) are male;
(ii) are female;
(iii) receive a Federal Pell Grant; and
(iv) are a self-identified member of a major racial or ethnic group;
(R) the placement in employment of, and types of employment obtained by, graduates of the institution's degree or certificate programs, gathered from such sources as alumni surveys, student satisfaction surveys, the National Survey of Student Engagement, the Community College Survey of Student Engagement, State data systems, or other relevant sources;
(S) the types of graduate and professional education in which graduates of the institution's four-year degree programs enrolled, gathered from such sources as alumni surveys, student satisfaction surveys, the National Survey of Student Engagement, State data systems, or other relevant sources;
(T) the fire safety report prepared by the institution pursuant to subsection (i);
(U) the retention rate of certificate- or degree-seeking, first-time, full-time, undergraduate students entering such institution; and
(V) institutional policies regarding vaccinations.
(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—
(A) 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 Forces, on official church missions, or with a recognized foreign aid service of the Federal Government; or
(B) in cases where the students described in subparagraph (A) represent 20 percent or more of the certificate- or degree-seeking, full-time, undergraduate students at the institution, recalculate the completion or graduation rates of such students by excluding from the calculation described in paragraph (3) the time period during which such students were not enrolled due to their service in the Armed Forces, 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.
(7)(A)(i) Subject to clause (ii), the information disseminated under paragraph (1)(L), or reported under subsection (e), shall be disaggregated by gender, by each major racial and ethnic subgroup, by recipients of a Federal Pell Grant, by recipients of a loan made under part B or C (other than a loan made under section 1078–8 of this title or a Federal Direct Unsubsidized Stafford Loan) who did not receive a Federal Pell Grant, and by recipients of neither a Federal Pell Grant nor a loan made under part B or C (other than a loan made under section 1078–8 of this title or a Federal Direct Unsubsidized Stafford Loan), if the number of students in such subgroup or with such status is sufficient to yield statistically reliable information and reporting will not reveal personally identifiable information about an individual student. If such number is not sufficient for such purposes, then the institution shall note that the institution enrolled too few of such students to so disclose or report with confidence and confidentiality.
(ii) The requirements of clause (i) shall not apply to two-year, degree-granting institutions of higher education until academic year 2011-2012.
(B)(i) In order to assist two-year degree-granting institutions of higher education in meeting the requirements of paragraph (1)(L) and subsection (e), the Secretary, in consultation with the Commissioner for Education Statistics, shall, not later than 90 days after August 14, 2008, convene a group of representatives from diverse institutions of higher education, experts in the field of higher education policy, state 1 higher education officials, students, and other stakeholders in the higher education community, to develop recommendations regarding the accurate calculation and reporting of the information required to be disseminated or reported under paragraph (1)(L) and subsection (e) by two-year, degree-granting institutions of higher education. In developing such recommendations, the group of representatives shall consider the mission and role of two-year degree-granting institutions of higher education, and may recommend additional or alternative measures of student success for such institutions in light of the mission and role of such institutions.
(ii) The Secretary shall widely disseminate the recommendations required under this subparagraph to two-year, degree-granting institutions of higher education, the public, and the authorizing committees not later than 18 months after the first meeting of the group of representatives convened under clause (i).
(iii) The Secretary shall use the recommendations from the group of representatives convened under clause (i) to provide technical assistance to two-year, degree-granting institutions of higher education in meeting the requirements of paragraph (1)(L) and subsection (e).
(iv) The Secretary may modify the information required to be disseminated or reported under paragraph (1)(L) or subsection (e) by a two-year, degree-granting institution of higher education—
(I) based on the recommendations received under this subparagraph from the group of representatives convened under clause (i);
(II) to include additional or alternative measures of student success if the goals of the provisions of paragraph (1)(L) and subsection (e) can be met through additional means or comparable alternatives; and
(III) during the period beginning on August 14, 2008, and ending on June 30, 2011.
(1)(A) Each eligible institution shall, through financial aid offices or otherwise, provide counseling to borrowers of loans that are made, insured, or guaranteed under part B (other than loans made pursuant to section 1078–3 of this title or loans under section 1078–2 of this title made on behalf of a student) or made under part C (other than Federal Direct Consolidation Loans or Federal Direct PLUS Loans made on behalf of a student) or made under part 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) information on the repayment plans available, including a description of the different features of each plan and sample information showing the average anticipated monthly payments, and the difference in interest paid and total payments, under each plan;
(ii) debt management strategies that are designed to facilitate the repayment of such indebtedness;
(iii) an explanation that the borrower has the options to prepay each loan, pay each loan on a shorter schedule, and change repayment plans;
(iv) for any loan forgiveness or cancellation provision of this subchapter and part C of subchapter I of chapter 34 of title 42, a general description of the terms and conditions under which the borrower may obtain full or partial forgiveness or cancellation of the principal and interest, and a copy of the information provided by the Secretary under section 1092(d) of this title;
(v) for any forbearance provision of this subchapter and part C of subchapter I of chapter 34 of title 42, a general description of the terms and conditions under which the borrower may defer repayment of principal or interest or be granted forbearance, and a copy of the information provided by the Secretary under section 1092(d) of this title;
(vi) the consequences of defaulting on a loan, including adverse credit reports, delinquent debt collection procedures under Federal law, and litigation;
(vii) information on the effects of using a consolidation loan under section 1078–3 of this title or a Federal Direct Consolidation Loan to discharge the borrower's loans under parts B, C, and D, including at a minimum—
(I) the effects of consolidation on total interest to be paid, fees to be paid, and length of repayment;
(II) the effects of consolidation on a borrower's underlying loan benefits, including grace periods, loan forgiveness, cancellation, and deferment opportunities;
(III) the option of the borrower to prepay the loan or to change repayment plans; and
(IV) that borrower benefit programs may vary among different lenders;
(viii) a general description of the types of tax benefits that may be available to borrowers; and
(ix) a notice to borrowers about the availability of the National Student Loan Data System and how the system can be used by a borrower to obtain information on the status of the borrower's loans; and
(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.
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.
(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. Such information shall also include information on the various payment options available for student loans, including income-sensitive and income-based repayment plans for loans made, insured, or guaranteed under part B and income-contingent and income-based repayment plans for loans made under part C. 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. The Secretary shall also provide information on loan forbearance, including the increase in debt that results from capitalization of interest. 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.
(4) The Secretary shall widely publicize the location of the information described in paragraph (1) among the public, eligible institutions, and eligible lenders, and promote the use of such information by prospective students, enrolled students, families of prospective and enrolled students, and borrowers.
(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—
(A) 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 Forces, on official church missions, or with a recognized foreign aid service of the Federal Government; or
(B) in cases where the students described in subparagraph (A) represent 20 percent or more of the certificate- or degree-seeking, full-time, undergraduate students at the institution, calculate the completion or graduation rates of such students by excluding from the calculations described in paragraph (1) the time period during which such students were not enrolled due to their service in the Armed Forces, 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.
(1) Each eligible institution participating in any program under this subchapter and part C of subchapter I of chapter 34 of title 42, other than a foreign institution of higher education, 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 law enforcement authority of campus security personnel;
(ii) the working relationship of campus security personnel with State and local law enforcement agencies, including whether the institution has agreements with such agencies, such as written memoranda of understanding, for the investigation of alleged criminal offenses; and
(iii) policies which encourage accurate and prompt reporting of all crimes to the campus police and the appropriate law enforcement 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), of larceny-theft, simple assault, intimidation, and destruction, damage, or vandalism of property, and of 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) 2 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.
(J) A statement of current campus policies regarding immediate emergency response and evacuation procedures, including the use of electronic and cellular communication (if appropriate), which policies shall include procedures to—
(i) immediately notify the campus community upon the confirmation of a significant emergency or dangerous situation involving an immediate threat to the health or safety of students or staff occurring on the campus, as defined in paragraph (6), unless issuing a notification will compromise efforts to contain the emergency;
(ii) publicize emergency response and evacuation procedures on an annual basis in a manner designed to reach students and staff; and
(iii) test emergency response and evacuation procedures on an annual basis.
(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, other than a foreign institution of higher education, 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, other than a foreign institution of higher education, 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, other than a foreign institution of higher education, 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 authorizing committees 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—