USC Subpart 4

in effect

20 U.S.C. § 1070c Purpose; appropriations authorized

(a) Purpose of subpartIt 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. (b) Authorization of appropriations; availability(1) In generalThere 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. (2) ReservationFor 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. (3) AvailabilitySums 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.

20 U.S.C. § 1070c–1 Allotment among States

(a) Allotment based on number of eligible students in attendance(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. (b) ReallotmentThe amount of any State’s allotment under subsection (a) 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) for such year. (c) Allotments subject to continuing complianceThe 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.

20 U.S.C. § 1070c–2 Applications for leveraging educational assistance partnership programs

(a) Submission and contents of applicationsA 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. (b) Payment of Federal share of grants made by qualified programFrom 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 1087–53(b)(1) of this title; (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. (c) Reservation and disbursement of allotments and reallotmentsUpon 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.

20 U.S.C. § 1070c–3 Administration of State programs; judicial review

(a) Disapproval of applications; suspension of eligibility(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. (b) Review of decisions(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), 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.

20 U.S.C. § 1070c–3a Grants for access and persistence

(a) PurposeIt 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. (b) Allotments to States(1) In general(A) AuthorizationFrom 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). (B) Determination of allotmentIn making allotments under subparagraph (A), the Secretary shall consider the following:(i) Continuation of awardExcept 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. (ii) Special continuation and transition ruleIf 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). (iii) PriorityThe Secretary shall give priority in making allotments to States that meet the requirements described in paragraph (2)(B)(ii). (2) Federal share(A) In generalThe Federal share of the cost of carrying out the activities under subsection (d) for any fiscal year shall not exceed 66.66 percent. (B) Different percentagesThe 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. (C) Non-Federal share(i) In generalThe non-Federal share under this section may be provided in cash or in kind, fairly evaluated. (ii) In-kind contributionFor 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. (iii) Effect on need analysisFor the purpose of calculating a student’s need in accordance with part F, an in-kind contribution described in clause (ii) shall not be considered an asset or income of the student or the student’s parent. (c) Application for allotment(1) In general(A) SubmissionA 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. (B) ContentAn 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. (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 student aid index determination described in section 1087ss(c) 11 See References in Text note below. 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. (2) State agencyThe 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. (3) PartnershipIn 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. (4) Roles of partners(A) State agencyA 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. (B) Degree-granting institutions of higher educationA 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. (C) ProgramsAn 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. (D) Philanthropic organization or private corporationA 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. (d) Authorized activities(1) In general(A) Establishment of partnershipEach 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. (B) Amount of grantsThe 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. (C) Special rules(i) Partnership institutionsA 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. (ii) Out-of-State institutionsIf 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. (2) Early notification(A) In generalEach 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. (B) Content of noticeThe 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. (3) EligibilityIn 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 a student aid index equal to zero, as determined under part F, 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). (4) Grant awardOnce 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. (5) Duration of awardAn 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, 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. (e) Administrative cost allowanceA 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. (f) Statutory and regulatory relief for institutions of higher educationThe 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. (g) Applicability ruleThe provisions of this subpart that are not inconsistent with this section shall apply to the program authorized by this section. (h) Maintenance of effort requirementEach 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. (i) Special ruleNotwithstanding 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). (j) Continuation and transitionFor 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. (k) ReportsNot 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.

20 U.S.C. § 1070c–4 “Community service” defined

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.