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 F 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
(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.
(
A prior section 1070b,
2008—Subsec. (b)(1).
1998—Subsec. (b)(1).
1992—Subsec. (b).
Amendment by
(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 F 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
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.
(
A prior section 1070b–1,
1992—Subsec. (a)(1).
Subsec. (a)(3).
Assistance may be made available under this subpart only to an institution which—
(1) has, in accordance with
(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
(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
(2)(A) In carrying out paragraph (1) of this subsection, each institution of higher education shall, in the agreement made under
(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
(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
(
A prior section 1070b–2,
1998—Subsec. (d).
1993—Subsec. (d).
1992—Subsec. (a)(2).
"(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).
Subsec. (e).
Amendment by
Amendment by
Amendment by
Section effective Oct. 17, 1986, except as otherwise provided, see section 2 of
(1) From the amount appropriated pursuant to
(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
(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)), divided by (ii) the sum of the need of all institutions (as so determined), multiplied by (iii) the amount appropriated pursuant to
(B) the amount required to be allocated to that institution under subsection (a).
(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 F 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.
(
Subpart 3 of this part, referred to in subsec. (c)(1)(B), was redesignated subpart 4 by
A prior section 1070b–3,
2008—Subsec. (a)(1).
Subsec. (c)(3)(D).
1998—Subsec. (a)(1).
Subsec. (a)(2)(A), (B).
Subsec. (a)(2)(C)(i).
Subsec. (b).
Subsec. (c).
Subsec. (c)(1).
Subsec. (c)(2)(A)(i).
Subsecs. (d) to (f).
1993—Subsec. (d)(3)(C).
1992—Subsec. (a)(4).
Subsec. (e).
1987—Subsec. (d)(2)(D).
"(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).
"(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).
Subsec. (d)(3)(B).
Amendment by
Amendment by
Section 401(b)(6) of
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.
(
Section effective Oct. 1, 1998, except as otherwise provided in