US Code

Public Law 119-73 (01/23/2026)

20 U.S.C. § 1096

Administrative expenses

(a)

Amount of payments

section 1094 of this title1

1 So in original.
section 1087cc(a)(4)(B) of this titlesection 1091(g) of this titleFrom the sums appropriated for any fiscal year for the purpose of the program authorized under subpart 1 of part A of this subchapter, the Secretary shall reserve such sums as may be necessary to pay to each institution with which he has an agreement under , an amount equal to $5 for each student at that institution who receives assistance under subpart 1 of part A. In addition, an institution which has entered into an agreement with the Secretary under subpart 3 of part A or part C, of this subchapter or under part E of this subchapter shall be entitled for each fiscal year which such institution disburses funds to eligible students under any such part to a payment for the purpose set forth in subsection (b). The payment for a fiscal year shall be payable from each such allotment by payment in accordance with regulations of the Secretary and shall be equal to 5 percent of the institution’s first $2,750,000 of expenditures plus 4 percent of the institution’s expenditures greater than $2,750,000 and less than $5,500,000, plus 3 percent of the institution’s expenditures in excess of $5,500,000 during the fiscal year from the sum of its grants to students under subpart 3 of part A, its expenditures during such fiscal year under part C for compensation of students, and the principal amount of loans made during such fiscal year from its student loan fund established under part E, excluding the principal amount of any such loans which the institution has referred under . In addition, the Secretary shall provide for payment to each institution of higher education an amount equal to 100 percent of the costs incurred by the institution in implementing and operating the immigration status verification system under .

(b)

Purpose of payments

(1)
The sums paid to institutions under this part are for the sole purpose of administering the programs described in subsection (a).
(2)
If the institution enrolls a significant number of students who are (A) attending the institution less than full time, or (B) independent students, the institution shall use a reasonable proportion of the funds available under this section for financial aid services during times and in places that will most effectively accommodate the needs of such students.

Pub. L. 89–329, title IV, § 489Pub. L. 99–498, title IV, § 407(a)100 Stat. 1491Pub. L. 99–603, title I, § 121(b)(7)100 Stat. 3391Pub. L. 100–50, § 15(15)101 Stat. 357Pub. L. 102–325, title IV106 Stat. 567Pub. L. 103–208, § 2(h)(44)107 Stat. 2478Pub. L. 110–315, title IV, § 494B122 Stat. 3319Pub. L. 111–39, title IV, § 407(b)(10)123 Stat. 1953(, as added , , ; amended , , ; , , ; , §§ 446(c), 493, , , 630; , (k)(6), , , 2486; , , ; , , .)

Editorial Notes

Prior Provisions

Pub. L. 89–329, title IV, § 489Pub. L. 96–374, title IV, § 451(a)94 Stat. 1453Pub. L. 97–35, title V, § 537(a)(2)95 Stat. 456Pub. L. 99–498A prior section 1096, , as added , , ; amended , , , related to administrative expenses, prior to the general revision of this part by .

Amendments

Pub. L. 111–392009—Subsec. (a). substituted “has referred under section 1087cc(a)(4)(B)” for “has agreed to assign under section 1087cc(a)(6)(B)” and “1091(g)” for “1091(h)”.

Pub. L. 110–3152008—Subsec. (b)(1). substituted “administering” for “offsetting the administrative costs of”.

Pub. L. 103–208, § 2(k)(6)Pub. L. 102–325, § 446(c)1993—Subsec. (a). , repealed . See 1992 Amendment note below.

Pub. L. 103–208, § 2(h)(44), substituted “1091(h) of this title” for “1091(c) of this title”.

Pub. L. 102–325, § 493(a)(3)1992—Subsec. (a). , substituted “subpart 3” for “subpart 2” in two places.

Pub. L. 102–325, § 493(a)(1)section 1087–57 of this titlesection 1087–57 of this title, (2), struck out “(other than )” after “or part C” in second sentence and struck out fourth sentence which read as follows: “The payment for a fiscal year for the purpose of subsection (b) with respect to shall be payable from each allotment under part C in accordance with regulations of the Secretary, and shall be 10 percent of the institution’s expenditures during such fiscal year under such section.”

Pub. L. 102–325, § 446(c)Pub. L. 102–325, § 493(a)(1)Pub. L. 103–208, § 2(k)(6), which directed amendment identical to amendment by , (2), above, was repealed by .

Pub. L. 102–325, § 493(b)Subsec. (b). , designated existing provisions as par. (1) and added par. (2).

Pub. L. 100–50section 1087–57 of this title1987—Subsec. (a). made technical amendment to reference to to correct reference to corresponding section of original Act, requiring no change in text.

Pub. L. 99–603section 1091(c) of this title1986—Subsec. (a). inserted provision directing the Secretary to pay the costs incurred by institutions of higher education in implementing and operating the immigration status verification system under .

Statutory Notes and Related Subsidiaries

Effective Date of 2009 Amendment

Pub. L. 111–39Pub. L. 110–315section 3 of Pub. L. 111–39section 1001 of this titleAmendment by effective as if enacted on the date of enactment of (), see , set out as a note under .

Effective Date of 1993 Amendment

Pub. L. 103–208Pub. L. 102–325section 5(a) of Pub. L. 103–208section 1051 of this titleAmendment by effective as if included in the Higher Education Amendments of 1992, , except as otherwise provided, see , set out as a note under .

Effective Date of 1992 Amendment

section 446(c) of Pub. L. 102–325section 2 of Pub. L. 102–325section 1001 of this titleAmendment by effective , see , set out as a note under .

section 493 of Pub. L. 102–325section 498(7) of Pub. L. 102–325section 1088 of this titleAmendment by , relating to payments for administrative expenses, applicable with respect to funds provided for award years beginning on or after , see , set out as a note under .

Effective Date of 1987 Amendment

Pub. L. 100–50Pub. L. 99–498section 27 of Pub. L. 100–50section 1001 of this titleAmendment by effective as if enacted as part of the Higher Education Amendments of 1986, , see , set out as a note under .

Effective Date of 1986 Amendment

Pub. L. 99–603section 121(c)(2) of Pub. L. 99–603section 502 of Title 42Amendment by effective , see , set out as a note under , The Public Health and Welfare.