20 U.S.C. § 1070b–2 | Agreements with institutions; selection…

(a)

Institutional eligibility

Assistance may be made available under this subpart only to an institution which—

(1)

section 1094 of this title has, in accordance with , an agreement with the Secretary applicable to this subpart;

(2)

agrees that the Federal share of awards under this subpart will not exceed 75 percent of such awards, except that the Federal share may be exceeded if the Secretary determines, pursuant to regulations establishing objective criteria for such determinations, that a larger Federal share is required to further the purpose of this subpart; and

(3)

agrees that the non-Federal share of awards made under this subpart shall be made from the institution’s own resources, including—

(A)

institutional grants and scholarships;

(B)

tuition or fee waivers;

(C)

State scholarships; and

(D)

foundation or other charitable organization funds.

(b)

Eligibility for selection

Awards may be made under this subpart only to a student who—

(1)

section 1091 of this title is an eligible student under ; and

(2)

makes application at a time and in a manner consistent with the requirements of the Secretary and that institution.

(c)

Selection of individuals and determination of amount of awards

(1)

section 1094 of this title section 1070b–3 of this title section 1070b–1 of this title From among individuals who are eligible for supplemental grants for each fiscal year, the institution shall, in accordance with the agreement under , and within the amount allocated to the institution for that purpose for that year under , select individuals who are to be awarded such grants and determine, in accordance with , the amounts to be paid to them.

(2)

(A)

section 1094 of this title In carrying out paragraph (1) of this subsection, each institution of higher education shall, in the agreement made under , assure that the selection procedures—

(i)

will be designed to award supplemental grants under this subpart, first, to students with exceptional need, and

(ii)

section 1091 of this title will give a priority for supplemental grants under this subpart to students who receive Pell Grants and meet the requirements of .

(B)

For the purpose of subparagraph (A), the term “students with exceptional need” means students with the lowest student aid indexes at the institution.

(d)

Use of funds for less-than-full-time students

If the institution’s allocation under this subpart is directly or indirectly based in part on the financial need demonstrated by students who are independent students or attending the institution on less than a full-time basis, then a reasonable proportion of the allocation shall be made available to such students.

(e)

Use and transfer of funds for administrative expenses

section 1096 of this titleAn 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 .

Pub. L. 89–329, title IV, § 413C Pub. L. 99–498, title IV, § 401(a)Oct. 17, 1986100 Stat. 1329 Pub. L. 102–325, title IV, § 403(d)July 23, 1992106 Stat. 506 Pub. L. 103–208, § 2(b)(25)Dec. 20, 1993107 Stat. 2459 Pub. L. 105–244, title IV, § 406(b)Oct. 7, 1998112 Stat. 1665 Pub. L. 116–260, div. FF, title VII, § 704(2)Dec. 27, 2020134 Stat. 3199 (, as added , , ; amended –(f), , ; , , ; , , ; , , .)

Editorial Notes

Prior Provisions

Pub. L. 89–329, title IV, § 413C Pub. L. 92–318, title I, § 131(b)(1)June 23, 197286 Stat. 253 Pub. L. 94–482, title I, § 122(b)Oct. 12, 197690 Stat. 2094 Pub. L. 96–374, title IV, § 403(d)Oct. 3, 198094 Stat. 1405 Pub. L. 99–498A prior section 1070b–2, , as added , , ; amended , , ; , , , related to selection of recipients of supplemental educational opportunity grants and agreements with institutions, prior to the general revision of this part by .

Amendments

Pub. L. 116–2602020—Subsec. (c)(2)(B). substituted “student aid indexes” for “expected family contributions”.

Pub. L. 105–2441998—Subsec. (d). 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.”

Pub. L. 103–2081993—Subsec. (d). 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”.

Pub. L. 102–325, § 403(d)1992—Subsec. (a)(2). , 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”.

Pub. L. 102–325, § 403(e)Subsec. (d). , 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”.

Pub. L. 102–325, § 403(f)section 1095 of this titleSubsec. (e). , struck out before period at end “, and may transfer such funds in accordance with the provisions of ”.

Statutory Notes and Related Subsidiaries

Effective Date of 2020 Amendment

Pub. L. 116–260July 1, 2024section 701(b) of Pub. L. 116–260 section 1001 of this titleAmendment by effective , except as otherwise expressly provided, and applicable with respect to award year 2024–2025 and each subsequent award year, as determined under this chapter, see , set out as a note under .

Effective Date of 1998 Amendment

Pub. L. 105–244Oct. 1, 1998Pub. L. 105–244 section 3 of Pub. L. 105–244 section 1001 of this titleAmendment by effective , except as otherwise provided in , see , set out as a note under .

Effective Date of 1993 Amendment

Pub. L. 103–208July 1, 1994section 5(b)(6) of Pub. L. 103–208 section 1051 of this titleAmendment by effective on and after , see , set out as a note under .

Effective Date of 1992 Amendment

Pub. L. 102–325July 23, 1992July 1, 1993section 410 of Pub. L. 102–325 section 1070a of this titleAmendment by effective , 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 , see , set out as a note under .

Effective Date

Oct. 17, 1986section 2 of Pub. L. 99–498 section 1001 of this titleSection effective , except as otherwise provided, see , set out as a note under .

Pub. L. 99–498, title IV, § 401(b)(5)Oct. 17, 1986100 Stat. 1353

20 U.S.C. 1070b–2(c)(2)July 1, 1987“Section 413C(c)(2) of the Act [] 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 .”

, , , provided that:

Section text and notes