text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/355

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1457

ft, "(2) assessing such adjusted available income in accordance ^ with the assessment schedule set forth in subsection (e); and "(3) dividing the assessment resulting under paragraph (2) by the number of family members who will be attending, on at least a half-time basis, a program of postsecondary education during the award period for which assistance under this title is requested; except that the amount determined under this subsection shall not be less than zero. "(c) PARENTS' AVAILABLE INCOME.—

"(1) IN GENERAL.—The parents' available income is determined by deducting from total income (as defined in section 480)— "(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) a standard maintenance allowance, determined in accordance with paragraph (4); "(E) an employment expense allowance, determined in accordance with paragraph (5); "(F) a medical-dental expense allowance, determined in accordance with paragraph (6); and "(G) an educational expense allowance, determined in accordance with paragraph (7). "(2) ALLOWANCE FOR STATE AND OTHER TAXES.—The allowance

i

for State and other taxes is equal to an amount determined by multiplying total income (as defined in section 480) by a percentage determined according to the following table (or a successor table prescribed by the Secretary under section 479): "Percentages for Computation of State and Other Tax Allowance

If parents' State or territory of residence is—

Alaska, Puerto Rico, Wyoming American Samoa, Guam, Louisiana, Nevada, Texas, Trust Territory, Virgin Islands Florida, South Dakota, Tennessee, New Mexico North Dakota, Washington Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, Montana, New Hampshire, Oklahoma, West Virginia Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky California, Delaware, Idaho, Iowa, Nebraska, North Carolina, Ohio, Pennsylvamia, South Carolina, Utah, Vermont, Virginia, Canada, Mexico Maine, New Jersey District of Columbia, Hawaii, Maryland, Massachusetts, Oregon, Rhode Island Michigan, Minnesota Wisconsin New York

And parents' total income is— i x. $15,000 or ^^^'^^ '"<"* then the percentage is— 3 2 4 5 6

3 4 5

7

6

8

7

9 10

8 9

11 12 13 14

10 11 12 13

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/356

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1458

"(3) ALLOWANCE FOR SOCIAL SECURITY TAXES.—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. "(4) STANDARD MAINTENANCE ALLOWANCE.—The

standard

maintenance allowance is the amount of reasonable living expenses that would be associated with the maintenance of an individual or family. The standard maintenance allowance is determined by the following table (or a successor table prescribed by the Secretary under section 479): "Standard Maintenance Allowance Number in College

Family Size (including student) 2 3 l'^;v4-i:---':^ 5 6 For each additional add:

26 USC 2.

1 $8,380 10,440 12,890 15,210 17,790 2,010

2 $6,950 9,010 11,460 13,780 16,360 2,010

3

$7,580 10,030 12,350 14,930 2,010

4

5

For each additional substract:

 * i;.,•,.,

$8,600 10,920 13,500 2,010

$8,490 12,070 2,010

1,430

"(5) EMPLOYMENT EXPENSE ALLOWANCE.—The employment expense allowance is determined as follows: "(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 $2,100 or 35 percent of the earned income of the parent with the lesser earned income. "(B) If a parent qualifies as a head of household as defined in section 2 of the Internal Revenue Code, such allowance is equal to the lesser of $2,100 or 35 percent of his or her earned income. For any award year after award year 1987-1988, this paragraph shall be applied by increasing the dollar amount specified in subparagraphs (A) and (B) to reflect increases in the amount and percent of the Bureau of Labor Standards budget of the marginal costs for meals away from home, apparel and upkeep, transportation, and housekeeping services for a two-worker versus one-worker family. "(6) MEDICAL-DENTAL EXPENSE ALLOWANCE.—The

medical-

dental expense allowance is equal to the amount by which the sum of unreimbursed medical and dental expenses, including medical insurance premiums, exceeds 5 percent of the total income of the parents. "(7) EDUCATIONAL EXPENSE ALLOWANCE.—The educational expense allowance is equal to the unreimbursed tuition and fees paid by the student's parents for each dependent child, other than the student, enrolled in an elementary or secondary school, not to exceed for each such child the national average

�

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/357

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1459

per pupil instructional cost as published by the National Center for Educational Statistics using the most recent available data. '(d) PARENTS' INCOME SUPPLEMENTAL AMOUNT FROM ASSETS.—

"(1) IN GENERAL.—The parents' income supplemental amount from assets is equal to— "(A) the parental 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)). "(2) PARENTAL NET WORTH.—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, including the net value of 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 480(e) of this Act); 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 479): "Adjusted Net Worth of a Business or Farm If the net worth of a business or farm is— Less than $1 $l-$65,000 $65,001-3195,000

Then the adjusted net worth is: $0 40 percent of NW $26,000 plus 50 percent of NW over $65,000 $91,000 plus 60 percent of NW over $195,000 $169,000 plus 100 percent of NW over $325,000

$195,001-$325,000 $325,001 or more

"(3) ASSET PROTECTION ALLOWANCE.—The asset protection allowance is calculated according to the following table: "Asset Protection Allowances for Families and Students If the age of the oldest parent is—

And there are two parents

then the asset protection allowance' is— $0 $0 1,900 1,500 3,900 3,000 5,800 4,500 7,800 6,100 9,700 7,600 11.700 9,100 13.600 10,600

25 or less. 26 27 28 29 30 31 32

71-19A 0 -

one parent

- 13: QL. 3 Part 2

29 USC 1651.

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text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/358

 100 STAT. 1460 Tj'i

PUBLIC LAW 99-498—OCT. 17, 1986 "Asset Protection Allowances for Families and Students—Continued

And there are If the age of the oldest parent is— two parents

..)r I ic

33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 or more

^. .y...

one parent

15,600 17,500 19,500 21,400 23,400 25,300 27,300 29,200 30,000 30,800 31,600 32,500 33,300 34,200 35,200 36,100 37,300 38,300 39,600 40,900 42,000 43,400 44,800 46,300 48,100 49,700 51,600 53,300 55,300 7 57,400 ^ ' ' " •" 59,600 61,800 64,100

12,100 13,600 15,100 16,600 18,200 19,700 21,200 22,700 23,200 23,800 24,200 24,800 25,400 26,100 26,700 27,200 27,900 28,800 29,500 30,300 31,000 32,000 32,800 33,800 34,600 35,700 36,800 37,900 39,000 40,200 41,400 42,600 44,100

"(4) ASSET CONVERSION RATE.—The asset conversion rate is ^' determined as follows: .,< "(A) if the parental net worth (determined in accordance with paragraph (2)) minus the asset protection allowance - — (determined in accordance with paragraph (3)) is equal to or greater than zero, the conversion rate is 12 percent; '^ • "(B) if such parental net worth minus such asset protection allowance is less than zero and the parents' contribution from available income (determined in accordance with subsection (c)) is greater than $15,000, the conversion rate is zero percent; "(C) if such parental net worth minus such asset protecr. r. tion allowance is less than zero and such parents' available income is equal to or greater than zero but less than j>,r $15,000, the conversion rate (rounded to 3 decimal places) is equal to 6 percent multiplied by a fraction— "(i) the numerator of which is equal to $15,000 minus such parents'available income; and "(ii) the denominator of which is $15,000; and "(D) if such parental net worth minus such asset protection allowance is less than zero and such parents' available income is equal to or less than zero, the conversion rate is 6 percent.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/359

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1461

"(e) ASSESSMENT SCHEDULE.—The adjusted available income (as

determined under subsection (b)(1) and hereafter in this subsection referred to as 'AAD is assessed according to the following table (or a successor table prescribed by the Secretary under section 479): "Parents' Assessment From Adjusted Available Income (AAI) If AAI is— Less than $3,409 $3,409 to $7,500 $7,501 to $9,400 $9,401 to $11,300 $11,301 to $13,200 $13,201 to $15,100 $15,101 or more

Then the assessment is— -$750 22% of AAI $1,650 + 25% of AAI over $2,125 + 29% of AAI over $2,676 + 34% of AAI over $3,322 + 40% of AAI over $4,082 + 47% of AAI over

$7,500 $9,400 $11,300 $13,200 $15,100

"(f) COMPUTATIONS IN CASE OF SEPARATION, DIVORCE, REMARRIAGE, O DEATH.— R "(1) DIVORCED OR SEPARATED PARENTS.—Income for a student

whose parents are divorced or separated is determined under the following procedures: "(A) Include only the income 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 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 of the parent who provided the greater support during the most recent calendar year for which parental support was provided. "(2) DEATH OF A PARENT.—Income in the case of the death of any parent is determined as follows: "(A) If either of the parents have died, the student shall include only the income of the surviving parent. "(B) If both parents have died, the student shall not report any parental income. "(3) REMARRIED PARENTS.—Income in the case of a parent whose income is taken into account under paragraph (1) of this subsection, or a parent who is a widow or widower and whose income is taken into account under paragraph (2) of this subsection, has remarried, is determined as follows: The income of that parent's spouse shall be included in determining the student's annual adjusted family income 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. "(g) STUDENT CONTRIBUTION FROM AVAILABLE INCOME.—

"(1) IN GENERAL.—The student (and spouse) contribution from available income is equal to the greater of— "(A) a mandatory self-help amount of $700 for a first-year undergraduate student; "(B) a mandatory self-help amount of $900 for any other student; or

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/360

 100 STAT. 1462

PUBLIC LAW 99-498—OCT. 17, 1986 jgi * «,. T

"(C) an amount equal to 70 percent of the student's total income (determined in accordance with section 480) minus the adjustment to student (and spouse) income (determined in accordance with paragraph (3)).

"(2)

ADJUSTMENT TO STUDENT (AND SPOUSE) INCOME.—The

adjustment to student (and spouse) income is equal to the sum of— "(A) estimated Federal income taxes of the student (and spouse); "(B) an allowance for State and local income taxes (determined in accordance with paragraph (3)); and "(C) an allowance for social security taxes determined in accordance with paragraph (4). "(3) ALXOWANCE FOR STATE AND LOCAL INCOME TAXES.—The

allowance for State and local income taxes is equal to an amount determined by multiplying total taxable income (as defined in section 480) by a percentage determined according to the following table: "Percentages for Computation of State and Local Income Tax Allowance If the students'State or territory of residence is— Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, Tennessee, Texas, Trust Territory, Virgin Islands, Washington, Wyoming Connecticut, Louisiana, Puerto Rico Arizona, New Hampshire, New Mexico, North Dakota Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, Missouri, Montana, Nebraska, New Jersey, Oklahoma Arkansas, Georgia, Iowa, Kentucky, Maine, Pennsylvania, Utah, Vermont, Virginia, West Virginia, Canada, Mexico California, Idaho, Massachusetts, North Carolina, Ohio, Rhode Island, South Carolina Hawaii, Maryland, Michigan, Wisconsin Delaware, District of Columbia, Minnesota, Oregon New York

The percentage

0 1 2 3 4 5 6 7 8

"(4) ALLOWANCE FOR SOCIAL SECURITY TAXES.—The allowance

for social security taxes is equal to the amount earned by the student (and spouse) 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. "(h) STUDENT (AND SPOUSE) INCOME SUPPLEMENTAL AMOUNT FROM

29 USC 1651.

ASSETS.—The student (and spouse) supplemental income amount from assets is determined by multiplying by 35 percent the sum of— "(1) the current balguice 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 480(e) of this Act).

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/361

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1463

"FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITHOUT DEPENDENTS "SEC. 476. (a) COMPUTATION OF EXPECTED FAMILY CONTRIBUTION.—

For each independent student without dependents (including a spouse), the expected family contribution is equal to the sum of— "(1) the student's contribution from income (determined in accordance with subsection (b)); and "(2) the student's income supplemental amount from assets (determined in accordance with subsection (c)). "(b) STUDENT'S CONTRIBUTION FROM INCOME.—

"(1) IN GENERAL.—The student's contribution from income is determined by— "(A) computing the student's available taxable income by deducting from the student's adjusted gross income— "(i) Federal income taxes; "(ii) an allowance for State and local income taxes, determined in accordance with paragraph (2); "(iii) the allowance for social security taxes, determined in accordance with paragraph (3); and "(iv) a maintenance allowance for periods of nona>,' enrollment not to exceed $600 per month; "(B) assessing such available taxable income in accordance with paragraph (4); and "(C) adding to the assessment resulting under subparagraph (B) the amount of the untaxed income and benefits of the student (determined in accordance with section 480(c)), except that the student's contribution from income shall not be less than $1,200. "(2) ALLOWANCE FOR STATE AND LOCAL INCOME TAXES.—The

allowance for State and local income taxes is equal to an amount determined by multiplying total taxable income (as defined in section 480) by a percentage determined according to the following table (or a successor table prescribed by the Secretary under section 479): "Percentages for Computation of State and Local Income Tax Allowance If the students' State or territory of residence is— Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, Tennessee, Texas, Trust Territory, Virgin Islands, Washington, Wyoming Connecticut, Louisiana, Puerto Rico Arizona, New Hampshire, New Mexico, North Dakota Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, Missouri, Montana, Nebraska, New Jersey, Oklahoma Arkansas, Georgia, Iowa, Kentucky, Maine, Pennsylvania, Utah, Vermont, Virginia, West Virginia, Canada, Mexico Cedifornia, Idaho, Massachusetts, North Carolina, Ohio, Rhode Mand, South Carolina Hawaii, Maryland, Michigan, Wisconsin Delaware, District of Columbia, Minnesota, Oregon New York

'^^^ p^centage

0 1 2 3 4 5 6 7 8

"(3) ALLOWANCE FOR SOCIAL SECURITY TAXES.—The allowance

for social security taxes is equal to the amount earned by the student multiplied by the social security withholding rate

20 USC lOSTpp.

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text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/362

 100 STAT. 1464

qqv fci >^ii es

PUBLIC LAW 99-498—OCT. 17, 1986

appropriate to the tax year of the earnings, up to the maximum statutory social security tax withholding amount for that same tax year. "(4) ASSESSMENT OF AVAILABLE TAXABLE INCOME.—The student's available taxable income (determined in accordance with paragraph (1)(A) of this subsection) is assessed as follows: "(A) if such available taxable income is equal to or ^^ ^ .^ greater than $0 but less than or equal to $8,900, then the assessment is equal to 70 percent of such available taxable income; and "(B) if such available taxable income is greater than Bl $8,900, then the assessment is equal to $6,230 plus 90 percent of such available taxable income in excess of $8,900. "(c) STUDENT'S INCOME SUPPLEMENTAL AMOUNT FROM ASSETS.—

29 USC 1651.

"(1) IN GENERAL.—The student's income supplemental amount from assets is equal to— "(A) the student's net worth (determined in accordance ,1ft with paragraph (2)); minus "(B) the asset protection allowance (determined in accordj If ance with paragraph (3)); multiplied by "(C) the asset conversion rate (determined in accordance 4yv with paragraph (4)). "(2) STUDENT'S NET WORTH.—The student'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, 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 480(e) of this Act); 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 479): "Adjusted Net Worth of a Business or Farm If the net worth of^ business or farm Less than $1 $l-$65,000 $65,001-$195,000 $195,001-$325,000 $325,001 or more

^hen the adjusted net worth i s $0 40 percent of NW $26,000 plus 50 percent of NW over $65,000 $91,000 plus 60 percent of NW over $195,000 $169,000 plus 100 percent of NW over $325,000

"(3) ASSET PROTECTION ALLOWANCE.—The asset protection allowance is calculated according to the following table:

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/363

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1465

"Asset Protection Allowances for Students If the age of the student i s 25 or less 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 or more

"^"^ S o ^ c e T - ^ * ' " " $0 1,500 3,000 4,500 6,100 7,600 9,100 10,600 12,100 13,600 15,100 16,600 18,200 19,700 21,200 22,700 23,200 23,800 24,200 24,800 25,400 26,100 26,700 27,200 27,900 28,800 29,500 30,300 31,000 32,000 32,800 33,800 34,600 35,700 36,800 37,900 39,000 40,200 41,400 42,600 44,100

"(4) ASSET CONVERSION RATE.—The asset conversion rate is 35 percent. "FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITH DEPENDENTS "SEC. 477. (a) COMPUTATION OF EXPECTED FAMILY CONTRIBUTION.—

For each independent student with dependents (including 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)); and "(B) the family's income supplemental amount from assets (determined in accordance with subsection (c)); "(2) assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d); and

20 USC I087qq.

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text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/364

 100 STAT. 1466

PUBLIC LAW 99-498—OCT. 17, 1986

"(3) dividing the assessment resulting under paragraph (2) by -" the number of family members who will be attending, on at ^ least a half-time basis, a program of postsecondary education during the award period for which assistance under this title is requested; except that the amount determined under this subsection shall not be less than zero. "(b) FAMILY'S AVAILABLE INCOME.—

"(1) IN GENERAL.—The family's available income is determined by deducting from total income (as defined in section 480)— "(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) a standard maintenance allowance, determined in accordance with paragraph (4); "(E) an employment expense allowance, determined in accordance with paragraph (5); "(F) a medical-dental expense allowance, determined in accordance with paragraph (6); and "(G) an educational expense offset, determined in accordance with paragraph (7); except that the family's available income shall not be less than $700 for a first year undergraduate student or $900 for any other student. "(2) ALLOWANCE FOR STATE AND OTHER TAXES.—The allowance

for State and other taxes is equal to an amount determined by multiplying total income (as defined in section 480) by a percentage determined according to the following table (or a successor table prescribed by the Secretary under section 479): "Percentages for Computation of State and Other Tax Allowance And student's total income is— i .. j j g QQQ $15,000 more

If student's State or territory of residence is—

-,

iff

.

Alaska, Puerto Rico, Wyoming American Samoa, Guam, Louisiana, Nevada, Texas, Trust Territory, Virgin Islands Florida, South Dakota, Tennessee, New Mexico North Dakota, Washington Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, Montana, New Hampshire, Oklahoma. West Virginia Colorado, Connecticut, Georgia, Illinois, Kansas,' Kentucky California, Delaware, Idaho, Iowa, Nebraska, North Carolina, Ohio, Pennsylvania, South Carolina, Utah, Vermont, Virginia, Canada, Mexico Maine, New Jersey District of Columbia, Hawaii, Maryland, Massachusetts, Oregon, Rhode Island Michigan, Minnesota Wisconsin

then the percentage is— 3 4 5 6

..:

4^j

^,£ -, ^y. - **

3 ^ 5 . j.

, '• 7

6

8

7, ^'

9 10 11 12 13

.

8 9 10 11 12

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text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/365

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1467

"Percentages for Computation of State and Other Tax Allowance—Continued And student's total income is— If student's State or territory of residence is—

less than $15,000

$15,000 or more

then the percentage is— New York.

14

13

"(3) ALLOWANCE FOR SOCIAL SECURITY TAXES.—The allowance

for social security taxes is equal to the amount earned by the student and the student's spouse 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. "(4) STANDARD MAINTENANCE ALLOWANCE.—The

standard

maintenance allowance is the amount of reasonable living expenses that would be associated with the maintenance of an individual or family. The standard maintenance allowance is determined by the following table (or a successor table prescribed by the Secretary under section 479): "Standard Maintenance Allowance Number in college

Family size (including student) 2 « » •

"

4 "•

5

6 For each additional add:

1

2

3

4

5

$8,380 10,440 12,890 15,210 17,790

$6,950 9,010 11,460 13,780 16,360

$7,580 10,030 12,350 14,930

$8,600 10,920 13,500

$8,490 12,070

2,010

2,010

2,010

2,010

For each additional subtract:

2,010

1,430

"(5) EMPLOYMENT EXPENSE ALLOWANCE.—The employment expense allowance is determined as follows: "(A) If both the student and a spouse 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 $2,000 or 35 percent of the earned income of the student or spouse with the lesser earned income. "(B) If a student qualifies as a head of household as defined in section 2 of the Internal Revenue Code, such 26 USC 2. allowance is equal to the lesser of $2,100 or 35 percent of his or her earned income. For any award year after award year 1987-1988, this paragraph shall be applied by increasing the dollar amount specified in subparagraphs (A) and (B) to reflect increases in the amount and percent of the Bureau of Labor Standards budget of the marginal costs for meals away from home, apparel and upkeep, transportation, and housekeeping services for a two-worker versus one-worker family. "(6) MEDICAL-DENTAL EXPENSE ALLOWANCE.—The medical-

dental expense allowance is equal to the amount by which the sum of unreimbursed medical and dental expenses, including

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/366

 100 STAT. 1468

PUBLIC LAW 99-498—OCT. 17, 1986 medical insurance premiums, exceeds 5 percent of the total income of the family. "(7) EDUCATIONAL EXPENSE ALLOWANCE.—The educational expense allowance is equal to the unreimbursed tuition and fees ^ paid by the student or the student's spouse, or both, for each dependent child, enrolled in elementary or secondary school, not to exceed for each such child the national average per pupil instructional cost sis published by the National Center for Educational Statistics using the most recent available data. "(c) FAMILY'S INCOME SUPPLEMENTAL AMOUNT FROM ASSETS.—

29 USC 1651.

"(1) IN GENERAL.—The family's income supplemental amount from assets is equal to— "(A) the family net worth (determined in accordance with paragraph (2)); minus '^ "(B) the asset protection allowance (determined in accord.^ _ ance with paragraph (3)); multiplied by iff "(C) the asset conversion rate (determined in accordance with paragraph (4)). ^ "(2) FAMILY NET WORTH.—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, 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 480(e) of this . Act); 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 •;)Eithe Secretary under section 479): "Adjusted Net Worth of a Business or Farm If the net worth o^^business or farm Less than $1 $l-$65,000 $65,001-3195,000 $195,001-$325,000 $325,001 or more

^^^^^ ^^^^ ^^.^^^^

^^^ ^ ^ ^ ^ j ^. g _

$0, ,.5 40 percent of NW $26,000 plus 50 percent of NW over $65,000 $91,000 plus 60 percent of NW over $195,000 $169,000 plus 100 percent of NW over $325,000

•; - «? u i C

"(3) ASSET PROTECTION ALLOWANCE.—The asset protection ^^ allowance is calculated according to the following table:

S«-

�


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Page:United States Statutes at Large Volume 100 Part 2.djvu/367

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1469

"Asset Protection Allowances for Families and Students And there are If the age of the student is— two spouses

one spouse

then the asset protection allowance is— 25 or less 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 or more

.f

$0 1,900 3,900 5,800 7,800 9,700 11,700 13,600 15,600 17,500 19,500 21,400 23,400 25,300 27,300 29,200 30,000 30,800 31,600 32,500 33,300 34,200 35,200 36,100 37,300 38,300 39,600 40,900 42,000 43,400 44,800 46,300 48,100 49,700 51,600 53,300 55,300 57,400 59,600 61,800 64,100

$0 1,500 3,000 4,500 6,100 7,600 9,100 10,600 12,100 13,600 15,100 16,600 18,200 19,700 21,200 22,700 23,200 23,800 24,200 24,800 25,400 26,100 26,700 27,200 27,900 28,800 29,500 30,300 31,000 32,000 32,800 33,800 34,600 35,700 36,800 37,900 39,000 40,200 41,400 42,600 44,100

"(4) ASSET CONVERSION RATE.—The asset conversion rate is determined as follows: "(A) if the family's net worth (determined in accordance with paragraph (2)) minus the asset protection allowance (determined in accordance with paragraph (3)) is equal to or greater than zero, the conversion rate is 12 percent; "(B) if such family's net worth minus such asset protection allowance is less than zero and the family's available income (determined in accordance with subsection (c)) is greater than $15,000, the conversion rate is zero percent; "(C) if such family's net worth minus such asset protection allowance is less than zero and such family's available income is equal to or greater than zero but less than

»• '.'-'J-i'

>'^ 'Mmmi

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Page:United States Statutes at Large Volume 100 Part 2.djvu/368

 100 STAT. 1470

PUBLIC LAW 99-498—OCT. 17, 1986

$15,000, the conversion rate is equal to 6 percent multiplied by a fraction— "(i) the numerator of which is equal to $15,000 minus 7. such family's available income; and "(ii) the denominator of which is $15,000; and "(D) if such family's net worth minus such asset protection allowance is less than zero and such family's available income is less than zero, the conversion rate is 6 percent. "(d) ASSESSMENT SCHEDULE.—The adjusted available income (as determined under subsection (a)(1) and hereafter referred to as 'AAI') is assessed according to the following table (or a successor table prescribed by the Secretary under section 479): "Assessment From Adjusted Available Income (AAI) If AAIis-

Then the assessment is-

Less than $3,409 $3,409 to $7,500 $7,501 to $9,400 $9,401 to $11,300 $11,301 to $13,200 $13,201 to $15,100 $15,101 or more

-$750 22% of AAI $1,650 + 25% of AAI over $2,125 + 29% of AAI over $2,676 + 34% of AAI over $3,322 + 40% of AAI over $4,082 + 47% of AAI over

$7,500 $9,400 $11,300 $13,200 $15,100

REGULATIONS; UPDATED TABLES 20 USC 1087rr.

Regulations.

Federal Register, publication.

Federal Register, publication.

"SEC.

478.

(a)

AUTHORITY

To

PRESCRIBE

REGULATIONS

RE-

STRICTED.—(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 (h) through (e) 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 (e) of this section, or (B) that proposes modifications under paragraph (I)(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 482. If the Congress fails to approve such regulations by such May 1, the Secretary shall publish in the F ^ e r a l Register in accordance with section 482 updated tables for the applicable award year that are prescribed in accordance with subsections (b) through (e) of this section. "(b) STANDARD MAINTENANCE ALLOWANCE.—For each academic year after academic year 1987-1988, the Secretary shall publish in the Federal Register a revised table of standard maintenance allowances for the purpose of sections 475(c)(4) and 477(b)(4). Such revised table shall be developed by increasing each of the dollar amounts contained in the table in each such section by a percenteige equal to the estimated percentage increase in the C!onsumer Price Index (as determined by the Secretary after consultation with the Advisory Committee on Student Financial Assistance) between December 1986 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10.

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100 STAT. 1471

"(c) ADJUSTED N E T WORTH OF A FARM OR BUSINESS.—For each academic year after academic year 1987-1988, the Secretary shall publish in the Federal Register a revised table of adjusted net worth of a farm or business for the purpose of sections 475(d)(2)(C), 476(c)(2)(C), and 477(c)(2)(C). 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 after consultation with the Advisory Committee on Student Financial Assistance) between 1986 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $5,000; and "(2) by adjusting the dollar amounts '$26,000', '$91,000', and '$169,000' to reflect the changes made pursuant to paragraph (1). "(d) ASSET PROTECTION ALLOWANCE.—For each academic year after academic year 1987-1988, the Secretary shall publish in the Federal Register a revised table of asset protection allowances for purposes of sections 475(d)(3), 476(c)(3), and 477(c)(3). Such revised table shall be developed by determining the present value cost of an annuity that would provide, for each age cohort, 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. 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. "(e) ASSESSMENT SCHEDULES AND RATES.—(1) For each academic year after academic year 1987-1988, the Secretary shall publish in the Federal Register a revised table of assessments from adjusted available income for the purpose of sections 475(e) and 477(d). Such revised table shall be developed— "(A) 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 after consultation with the Advisory Committee on Student Financial Assistance) between December 1986 and the December next preceding the beginning of such academic year, rounded to the nearest $100; and "(B) by adjusting the other dollar amounts to reflect the changes made pursuant to subparagraph (A). "(2) For each academic year after academic year 1987-1988, the assessments made pursuant to section 476(b)(4) shall be made— "(A) 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 after consultation with the Advisory Committee on Student Financial Assistance) between December 1986 and the December next preceding the beginning of such academic year, rounded to the nearest $100; and "(B) by adjusting the other dollar amount to reflect the changes made pursuant to subparagraph (A). The Secretary shall publish in the Federal Register the adjustments required to carry out this paragraph.

Federal Register, publication.

Federal Register, publication.

Federal Register, publication.

Federal Register, publication.

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PUBLIC LAW 99-498-OCT. 17, 1986

"(f) DEFINITION OF CONSUMER PRICE INDEX.—As used in this section, the term 'Consumer Price Index' means the Consumer Price Index for Wage Earners and Clerical Workers 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. "SIMPLIFIED NEEDS TEST

20 USC 1087SS.

479. (a) APPLICABLE TO ALL TITLE IV PROGRAMS.—The Secretary shall use a simplified needs analysis for any provision of this title based upon the elements set forth in paragraph (2) for the calculation of the expected family contribution for families which have adjusted gross incomes which are equal to or less than $15,000 per year and which file a form 1040A pursuant to the Internal 26 USC 1 et seq. Revenue Code of 1954. "(b) ELEMENTS IN TESTS.—The five elements to be used for the i simplified needs analysis are— "(1) adjusted gross income, "(2) Federal and State taxes paid, "(3) untaxed income and benefits, "(4) the number of family members, and "(5) the number of family members in postsecondary education. "SEC.

"DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS

20 USC I087tt.

"SEC. 479A. Nothing in this part shall be interpreted as limiting the ability of the student financial aid administrator, on the basis of adequate documentation, to make necessary adjustments to the cost of attendance and expected family contribution computations to allow for treatment of individual students with special circumstances. In addition, nothing in this part shall be interpreted as limiting the ability of the student financial aid administrator to use supplementary information about the financial status of eligible applicants in selecting recipients and determining the amount of awards under subparts 1 and 2 of part A and parte B, C, and E of this title. STUDENT ASSISTANCE AND OTHER FEDERAL PROGRAMS

20 USC 1087UU.

"SEC. 479B. No portion of any student financial assistance received by an individual from any program funded in whole or in part under title IV of this Act which is used by that individual for costs described in section 472(1) and (2) of this title, shall be considered as income or resources in determining eligibility for assistance under any other program funded in whole or in part with Federal funds. "DEFINITIONS

20 USC lOSTw.

Regulations.

"SEC. 480. As used in this part: "(a) TOTAL INCOME.—(1) Except as provided in paragraphs (2) and (3), the term 'total income' is equal to adjusted gross income plus untaxed income and benefite for the preceding tax year. "(2) The Secretary shall promulgate special regulations to permit, in the computation of family contributions for the programs under subpart 2 of part A and parte B, C, and E of this title for any academic year the exclusion from family income of any proceeds of a

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 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1473

sale of farm or business assets of that family if such sale results from a voluntary or involuntary foreclosure, forfeiture, liquidation, or bankruptcy. "(3) Income in the case of a dislocated worker shall be the income for the year for which the determination is made. For the purpose of this subparagraph, a dislocated worker is a worker identified pursuant to title III of the Job Training Partnership Act.

29 USC 1651.

"(b) UNTAXED INCOME AND BENEFITS OF PARENTS AND INDEPENDENT STUDENTS WITH DEPENDENTS.—The term 'untaxed income and

benefits' when applied to parent contributions or the contributions of independent students with dependents (including spouses) means— "(1) the Federal income tax deduction for a married couple when both work; (2) child support received; "(3) welfare benefits, including aid to families with dependent children under a State plan approved under part A of title IV of the Social Security Act and aid to dependent children; "(4) untaxed portions of unemployment compensation, except in any case in which a student is a dislocated worker certified in accordance with title III of the Job Training Partnership Act; "(5) workmen's compensation; "(6) veterans benefits such as death pension, dependency and indemnity compensation, and Veterans' Administration vocational rehabilitation program benefits (excluding educational benefits); "(7) educational benefits received under chapter 31 or chapter 34 of title 38, United States Code, by family members excluding dependent students; "(8) interest on tax-free bonds; "(9) the amount of dividends excluded for Federal income tax purposes; "(10) untaxed portions of pensions and capital gains; "(11) housing, food, and other living allowances (excluding rent subsidies for low-income housing) for military, clergy, and others (including cash payments and cash value of benefits); "(12) Job Training Partnership Act noneducational benefits; "(13) payments to individual retirement accounts and Keogh accounts; "(14) the amount of earned income credit claimed for Federal income tax purposes; "(15) credit for Federal tax on special fuels; "(16) the amount of dividend reinvestment excluded for purposes of Federal income taxes; "(17) the amount of foreign income excluded for purposes of Federal income taxes; "(18) untaxed social security benefits; and "(19) any other untaxed income and benefits, such as black lung or railroad retirement benefits. "(c) UNTAXED INCOME AND BENEFITS OF DEPENDENT STUDENTS OR INDEPENDENT STUDENTS WITHOUT DEPENDENTS,—For the purpose of

this part, the term 'untaxed income and benefits' when applied to the contributions of dependent students or independent students without dependents means— "(1) veterans benefits such as death pension, dependency and indemnity compensation, and Veterans' Administration voca-

. K- - -

42 USC 601.

38 USC 1500 et seq., 1651 et seq.

29 USC 1501 note.

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PUBLIC LAW 99-498—OCT. 17, 1986

tional rehabilitation program benefits (excluding educational benefits); "(2) educational benefits received under chapter 31 or chapter 38 USC 1500 et 34 of title 38, United States Code, by the student; seq., 1651 et seq. "(3) interest on tax-free bonds; "(4) the amount of dividends excluded for purposes of Federal income taxes; "(5) untaxed portions of pensions and capital gains; "(6) housing, food, and other living allowances (excluding rent subsidies for low-income housing) for military, clergy, and others (including cash payments and cash value of benefits); 29 USC 1501 "(7) Job Training Partnership Act noneducational benefits, note. except in any case in which a student is a dislocated worker certified in accordance with title III of the Job Training Part29 USC 1651. nership Act; "(8) untaxed portions of social security; "(9) welfare benefits; ! ^ ^ "(10)untaxedportionsof unemployment compensation; "(11) workmen's compensation; "(12) payments to individual retirement accounts and Keogh accounts; "(13) credit for Federal tax on special fuels; "(14) the amount of dividend reinvestment excluded for purposes of Federal income taxes; "(15) the amount of foreign income excluded for purposes of Federal income taxes; and "(16) any other untaxed income and benefits, such as black lung or railroad retirement benefits. "(d) INDEPENDENT STUDENT.—(1) 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; or "(B) meets the requirements of paragraph (2). "(2) Except as provided in paragraph (3), an individual meets the requirements of this paragraph if such individual— "(A) is an orphan or ward of the court; , "(B) is a veteran of the Armed Forces of the United States; •,. "(C) is a graduate or professional student who declares that he or she will not be claimed as a dependent for income tax purposes by his or her parents (or guardian) for the first calendar year of the award year; "(D) is a married individual who declares that he or she will not be claimed as a dependent for income tax purposes by his or her parents (or guardian) for the first calendar year of the award year; "(E) has legal dependents other than a spouse; "(F) is a single undergraduate student with no dependents who was not claimed as a dependent by his or her parents (or guardian) for income tax purposes for the 2 calendar years preceding the award year and demonstrates to the student financial aid administrator total self-sufficiency during the 2 calendar years preceding the award year in which the initial award will be granted by demonstrating an annual total income of $4,000; or "(G) is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances.

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 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1475

"(3) An individual may not be treated as an independent student pursuant to subparagraphs (C), (D), and (F) of paragraph (2) if the financial aid administrator determines that such individual was treated as an independent student during the preceding award year, but was claimed as a dependent by any other individual (other than a spouse) for income tax purposes for the first calendar year of such award year. "(4) The financial aid administrator may certify an individual described in subparagraph (C), (D), or (F) of paragraph (2) on the basis of a demonstration made by the individual, but no disbursal of an award may be made without documentation, "(e) DISPLACED HOMEMAKER.—The term 'displaced homemaker' means an individual who— "(1) has not worked in the labor force for a substantial number of years but has, during those years, worked in the home providing unpaid services for family members; "(2)(A) has been dependent on public assistance or on the income of another family member but is no longer supported by that income, or (B) is receiving public assistance on account of dependent children in the home; and "(3) is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.", (b) EFFECTIVE DATES FOR NEED ANALYSIS PROVISIONS,—(1) Except as provided in paragraphs (2) and (3)— (A) part F of title IV of the Act 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, (2) With respect to an application filed after the date of enactment of this Act for a loan under part B of such title 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, (3) For purposes of sections 413D(d)(2)(B), 442(d)(2)(B) and 462(d)(2)(B) for any academic year preceding academic year 19881989, 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) The definition of independent student contained in section 480(d) of the Act 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, 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. SEC, 407. REVISION OF STUDENT ASSISTANCE GENERAL PROVISIONS,

(a) AMENDMENT.—Part G of title IV of the Act (as redesignated by section 406) is amended to read as follows:

20 USC 1087kk note.

20 USC 1001 note.

20 USC 1087w note.

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PUBLIC LAW 99-498—OCT. 17, 1986

"PART G—GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE PROGRAMS "DEFINITIONS 20 USC 1088.

, ^ ^^ ^'' '

"SEC. 481. (a) INSTITUTION OF HIGHER EDUCATION.—(1) For

purpose of this title, except subpart 6 of part A and part B, the term 'institution of higher education' includes, in addition to the institutions covered by the definition contained in section 1201(a)— "(A) a proprietary institution of higher education;. ^ "(B) a postsecondary vocational institution; "(C) a department, division, or other administrative unit in a college or university which provides primarily or exclusively an accredited program of education in professional nursing and allied subjects leading to the degree of bachelor of nursing, or to an equivalent degree, or to a graduate degree in nursing; and "(D) a department, division, or other administrative unit in a junior college, community college, college, or university which provides primarily or exclusively an accredited 2-year program of education in professional nursing and allied subjects leading to an associate degree in nursing or to an equivalent degree. "(2) The term 'accredited' when applied to any program of nurse education means a program accredited by a recognized body or bodies approved for such purpose by the Secretary. "(b) PROPRIETARY INSTITUTION OF HIGHER EDUCATION.—For

' '

..

the

the

purpose of this section, the term 'proprietary institution of higher education' means a school (1) which provides not less than a 6-month program of training to prepare students for gainful employment in a recognized occupation, (2) which meets the requirements of clauses (1) and (2) of section 1201(a), (3) which does not meet the requirement of clause (4) of section 1201(a), (4) which is accredited by a nationally recognized accrediting agency or association approved by the Secretary for this purpose, and (5) which has been in existence for at least 2 years. Such term also includes a proprietary educational institution in any State which, in lieu of the requirement in clause (1) of section 1201(a), 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 (as determined by the institution under section 484(d)) from the training offered by the institution. 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. 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. "(c) POSTSECONDARY VOCATIONAL INSTITUTION.—For the purpose of

this section, the term 'postsecondary vocational institution' means a school (1) which provides not less than a 6-month program of training to prepare students for gainful employment in a recognized occupation, (2) which meets the requirements of clauses (1), (2), (4), and (5) of section 1201(a), and (3) which has been in existence for at least 2 years. Such term also includes an educational institution in

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 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1477

any State which, in lieu of the requirement in clause (1) of section 1201(a), 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 (as determined by the institution under subsection (d) of this section) from the training offered by the institution. "(d) ACADEMIC YEAR.—For the purpose of any program under this title, the term 'academic year' shall be defined by the Secretary by regulation. "MASTER CALENDAR "SEC. 482. (a) SECRETARY REQUIRED TO COMPLY WITH SCHEDULE.—

To assure adequate notification and timely delivery of student aid funds under this title, 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 and updates pursuant to sections 41 IE and 478 published in the Federal Register; >.1 "(C) by June 1: final modifications and updates pursuant to sections 41 IE and 478 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 t 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 institug, tional appeals by the Department; "(H) by March 1: appeals process completed; "(I) by April 1: final award notifications sent to institutions; and j =..,. "(J) by June 1: Pell Grant authorization levels sent to institutions. "(b) TIMING FOR REALLOCATIONS.—With respect to any funds reallocated under section 413D(e) or 442(e), 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 2 of part A

20 USC 1089.

Federal Register, publication. Federal Register, publication.

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 100 STAT. 1478

Reports.

PUBLIC LAW 99-498—OCT. 17, 1986

and part C, respectively. However, such reallocation shall occur at least once each year, not later than September 30 of that year. "(c) DELAY OF EFFECTIVE DATE OF LATE PUBLICATIONS.—Any additional regulatory changes initiated by the Secretary affecting the general administration of the programs pursuant to this title 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. "(d) NOTICE TO CONGRESS.—The Secretary shall notify the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives when the items specified in the calendar have been completed and provide all relevant forms, rules, and instructions with such notice. 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. 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. FORMS AND REGULATIONS

20 USC 1090.

State and local governments. Contracts. State and local governments.

State and local governments.

t

C ^ ^.

"SEC. 483. (a) COMMON FINANCIAL AID FORM AND PROCESSING.—(1)

The Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance, shall prescribe a common financial reporting form to be used to determine the need and eligibility of a student for financial assistance under parts A, C, and E of this title (other than under subpart 3 of part A) and to determine the need of a student for the purpose of part B of this title. For the purpose of collecting eligibility and other data for the purpose of part B, guaranty agencies, in cooperation with the Secretary, shall develop separate, identifiable loan application documents that applicants shall submit directly to eligible lenders. No student or parent of a student shall be charged a fee for processing the form prescribed by the Secretary whether the student completes that form or any other approved form. A student or parent may be charged a fee for processing an institutional or a State financial aid form or data elements that is not required by the Secretary. "(2) The Secretary shall, to the extent practicable, enter into not less than 3 contracts with States, institutions of higher education, or private organizations for the purpose of processing the application required under this subsection and issuing eligibility reports. "(3) The Secretary shall reimburse all approved contractors at a reasonable predetermined rate for processing such applications, for issuing eligibility reports, and for carrying out other services or requirements that may be prescribed by the Secretary. "(4) All approved contractors shall be required to adhere to all editing, processing, and reporting requirements established by the Secretary to ensure consistency. "(5) Nothing in this section shall prohibit States, institutions of higher education, or private organizations from simultaneously collecting data elements, in addition to the data elements prescribed

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 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1479

by the Secretary, as may be necessary to determine the eligibility of a student for financial aid funds not covered by this title. "(b) INFORMATION TO COMMITTEES OF CONGRESS.—Copies of

all

rules, regulations, guidelines, instructions, and application forms published or promulgated pursuant to this title shall be provided to the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives at least 45 days prior to their effective date. "(c) INFORMATION ON ELIGIBILITY FOR ASSISTANCE.—To help ensure access to postsecondary education by providing early notice to students of their potential eligibility for financial aid, the Secretary is authorized to enter into contracts with States, institutions of higher education, and private organizations for the purpose of— "(1) developing a common pre-eligibility Federal financial aid form, "(2) distributing and processing such form on a year-round basis free of charge to students, and "(3) issuing, on the basis of information reported by the student on such form, a pre-eligibility index designed to estimate the amount of Federal (and, if feasible, non-Federal) funds for which the student might qualify in later completing and submitting the application form called for under this section. The Secretary shall widely disseminate the pre-eligibility form through post offices and other appropriate Federal installations, schools, postsecondary institutions, libraries, and community-based agencies, including projects assisted under subparts 4 and 5 of part A of this title. "(d) TOLL-FREE INFORMATION.—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 title. "(e) NOTICE OF STUDENT AID RECEIPT.—(1) The Secretary shall develop a single form on which the amount of assistance received under this title (except assistance received under subparts 4, 5, and 7 of part A) by each student who receives such assistance can be recorded. This form shall be titled 'United States Department of Education, Federal Student Assistance Report'. Such form shall have prominently displayed the Great Seal of the United States. Such form shall be the same or a closely similar color to that of checks issued by the Tresisury Department and be provided by the Secretary free to eligible institutions in sufficient quantity and in a timely manner so that each eligible institution can provide a completed copy to each recipient of assistance under this title (except assistance received under subparts 4, 5, and 7 of part A) at the time awards are made but not less than once annually. "(2) Eligible institutions shall provide to each recipient of assistance under this title (except assistance received under subparts 4, 5, and 7 of part A) a completed copy of the 'United States Department of Education, Federal Student Assistance Report' form at the time awards are made but not less than once annually.

Contracts. State and local governments.

Contracts

STUDENT ELIGIBILITY

"SEC. 484. (a) IN GENERAL.—In order to receive any grant, loan, or Grants. work assistance under this title, a student must— 20 USC 1091.

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PUBLIC LAW 99-498—OCT. 17, 1986

< s, "(1) be enrolled or accepted for enrollment 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 487; "(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); "(3) not owe a refund on grants previously received at any institution under this title, or be in default on any loan from a student loan fund at any institution provided for in part E, or a loan made, insured, or guaranteed by the Secretary under this title for attendance at any institution; "(4) 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 Trust Territory "(5) be a citizen or national of the United States, a permanent of the Pacific resident of the United States, in the United States for other Islands. than a temporary purpose and able to provide evidence from the Guam. Immigration and Naturalization Service of his or her intent to Northern Mariana Islands. become a permanent resident, or a permanent resident of the Trust Territory of the Pacific Islands, Guam, or the Northern Mariana Islands. "(b) EuGiBiuTY FOR STUDENT LOANS.—In order to be eligible to receive any loan under this title (other than a loan under section 428A, 428B, or 428C) 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 title, shall— "(1) have received a determination of eligibility or ineligibility for a grant under such subpart 1 for such period of enrollment; or "(2) have (A) filed an application with the Pell Grant processor for such institution for such enrollment period, and (B) 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. "(c) SATISFACTORY PROGRESS.—(1) For the purpose of subsection (a)(2), 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) as a result of the application of this subsection

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 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1481

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) for a grant, loan, or work assistance under this title. "(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. "(d) ABILITY TO BENEFIT.—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 title 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; or "(2)(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. "(e) CERTIFICATION FOR G S L ELIGIBILITY.—Each eligible institution may certify student eligibility for a loan by an eligible lender under part B of this title prior to completing the review for accuracy of the information submitted by the applicant required by regulations issued under this title, 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. "(f) VERIFICATION LIMITATIONS.—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 title for more than 30 percent of the applicants in any award year. "(g) Loss OF ELIGIBILITY FOR VIOLATION OF LOAN LiMITS.—No

student shall be eligible to receive any grant, loan, or work assistance under this title if the eligible institution determines that the student borrowed in violation of the annual loan limits under part B or part E of this title in the same academic year, or if the student borrowed in excess of the aggregate maximum loan limits under such part B or part E.

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Page:United States Statutes at Large Volume 100 Part 2.djvu/380

 100 STAT. 1482 •'

State and local fnTrop^mQ?" ^0 Ubc 1091a.

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PUBLIC LAW 99-498—OCT. 17, 1986 " S T A T U T E OF LIMITATIONS

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"SEC. 484A, (a) IN GENERAL.—Notwithstanding any provision of State law that would set an earlier deadline for filing suit— it^i^ ^jj institution which receives funds under this title may file suit for collection of a refund due from a student on a grant made or work assistance awarded under this title during a period of time extending at least until a date 6 years (exclusive of periods during which the State statute of limitations period otherwise applicable to the suit would be tolled under State law) after the date the refund first became due; "(2) a guaranty agency which has an agreement with the Secretary under section 428(c) may file suit for collection of the amount due from a borrower on a loan made under part B of this title during a period of time extending at least until a date 6 years (exclusive of periods during which the State statute of limitations period otherwise applicable to the suit would be tolled under State law) after the date such guaranty agency reimburses the previous holder of the loan for its loss on account of the default of the borrower; "(3) an institution which has an agreement with the Secretary pursuant to section 463(a) may file suit for collection of the amount due from a borrower on a loan made under part E of this title during a period of time extending at least until a date 6 years (exclusive of periods during which the State statute of limitations period otherwise applicable to the suit would be tolled under State law) after the date of the default of the borrower with respect to that amount; and "(4) subject to the provisions of section 2416 of title 28 of the United States Code, the Attorney General may file suit— "(A) for payment of a refund due from a student on a grant made under this title until 6 years following the date on which the refund first became due; "(B) for collection of the amount due the Secretary from a borrower pursuant to section 428(c)(2)(D) and (c)(8) of this Ti; 1 title until 6 years following the date on which the loan is assigned to the Secretary under part B of this title; and ICC "(C) for collection of the amount due from a borrower on a loan made under part E until 6 years following the date on which the loan is assigned, transferred, or referred to the Secretary under part E of this title. "(b) ASSESSMENT OF COSTS AND OTHER CHARGES.—Notwithstanding

any provision of State law to the contrary— "(1) a borrower who has defaulted on a loan made under this title shall be required to pay, in addition to other charges specified in this title, reasonable collection costs; and "(2) in collecting any obligation arising from a loan made under part B of this title, a guaranty agency or the Secretary shall not be subject to a defense raised by any borrower based on a claim of infancy. "INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR STUDENTS

20 USC 1092.

"SEC. 485. (a) INFORMATION DISSEMINATION ACTIVITIES.—(1) Each

eligible institution participating in any program under this title shall carry out information dissemination activities for prospective

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Page:United States Statutes at Large Volume 100 Part 2.djvu/381

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1483

and enrolled students (including those attending or planning to attend less than full time) regarding the institution and all financial assistance under this title. The information required by this section shall be produced and be made readily available, through appropriate publications and mailings, to all current students, and to any prospective student upon request. 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 title; "(E) the cost of attending the institution, including (i) tuition ^ and fees, (ii) books and supplies, (iii) estimates of t3T)ical 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 the refund policy of the institution for the return of unearned tuition and fees or other refundable portion of cost, as described in subparagraph (E) of this paragraph; I "(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, and (iii), the faculty and other instructional personnel; i "(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 handicapped 1 students; u "(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 •i the documents describing the institution's accreditation, approval, or licensing; and "(K) the standards which the student must maintain in order to be considered to be making satisfactory progress, pursuant to section 484(a)(2). "(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. "(b) EXIT COUNSEUNG FOR BORROWERS.—Each eligible institution shall, through financial aid officers or otherwise, make available counseling to borrowers (individually or in groups) of loans which are made, insured, or guaranteed under part B of this title or made under part E of this title 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—

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Page:United States Statutes at Large Volume 100 Part 2.djvu/382

 100 STAT. 1484

PUBLIC LAW 99-498—OCT. 17, 1986

"(1) general information with respect to the average indebtedness of students who have loans under part B or part E; and "(2) the average anticipated monthly repa5ntnents, a review of the repayment options available, together with such debt and management strategies as the institution determines are designed to facilitate the repayment of such indebtedness. In the case of a borrower who leaves an institution without the prior knowledge of the institution, the institution shall attempt to provide the information to the student in writing. "(c) FINANCIAL ASSISTANCE INFORMATION PERSONNEL.—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). 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 title 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. "(d) DEPARTMENTAL PUBLICATION OF DESCRIPTIONS OF ASSISTANCE

PROGRAMS.—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 (1) assist students in gaining information through institutional sources, and (2) 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 title. Such information shall be provided by eligible institutions and eligible lenders at any time that information regarding loan availability is provided to any student. "COMBINED PAYMENT PLAN

20 USC 1092a. 42 USC 294.

"SEC. 485A. (a) EuGiBiLiTY FOR PLAN.—Upon the request of the borrower, a lender described in clause (i), (ii), or (iii) of section 428C(a)(l) of this Act, or defined in subpart I of part C of title VII of the Public Health Service Act may, with respect to a consolidation loan made under section 428C of this Act (and section 439(o) of this Act as in effect prior to the enactment of section 4280) and loans guaranteed under subpart I of part C of title VII of the Public Health Service Act (known as Health Education Assistance Loans), offer a combined payment plan under which the lender shall submit one bill to the borrower for the repayment of all such loans for the monthly or other similar period of repayment. "(b) APPLICABILITY OF OTHER REQUIREMENTS.—A lender offering a

combined payment plan shall comply with all provisions of section 428C applicable to loans consolidated or to be consolidated and shall comply with all provisions of subpart I of part C of title VII of the Public Health Service Act applicable to loans under that subpart

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Page:United States Statutes at Large Volume 100 Part 2.djvu/383

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1485

which are made part of the combined payment plan, except that a lender offering a combined payment plan under this section may offer consolidation loans pursuant to section 428C(b)(l)(A) if such lender holds any outstanding loan of a borrower which is selected for inclusion in a combined payment plan. "(c) LENDER ELIGIBILITY.—Such lender may offer a combined payment plan only if— . H:."(1) the lender holds an outstanding loan of that borrower which is selected by the borrower for incorporation into a combined payment plan pursuant to this section (including loans which are selected by the borrower for consolidation ' " - -t ^ under this section); or r "(2) the borrower certifies that the borrower has sought and has been unable to obtain a combined payment plan from the holders of the outstanding loans of that borrower. "(d) BORROWER SELECTION OF COMPETING OFFERS.—In the case of multiple offers by lenders to administer a combined payment plan for a borrower, the borrower shall select from among them the lender to administer the combined payment plan including its loan consolidation component. "(e) EFFECT OF PLAN.—Upon selection of a lender to administer the combined payment plan, the lender may reissue any Health Education Assistance Loan selected by the borrower for incorporation in the combined payment plan which is not held by such lender and the proceeds of such reissued loan shall be paid by the lender to the holder or holders of the loans so selected to discharge the liability on such loans, if— "(1) the lender selected to administer the combined payment plan has determined to its satisfaction, in accordance with reasonable and prudent business practices, for each loan being .^^ ^' reissued (A) that the loan is a legal, valid, and binding obliga^ tion of the borrower; (B) that each such loan was made and serviced in compliance with applicable laws and regulations; "(2) the loan being reissued was not in default (as defined in section 733(e)(3) of the Public Health Service Act) at the time 42 USC 294f. the request for a combined payment plan is made. "(f) NOTES AND INSURANCE CERTIFICATES.—(1) Each loan reissued under subsection (e) shall be evidenced by a note executed by the borrower. The Secretary of Health and Human Services shall insure such loan under a certificate of comprehensive insurance with no insurance limit, but any such certificate shall only be issued to an authorized holder of loans insured under subpart I of part C of title VII of the Public Health Service Act (including the Student Loan 42 USC 294. Marketing Association). Such certificates shall provide that all loans reissued under this section shall be fully insured against loss of principal and interest. Any insurance issued with respect to loans reissued under this section shall be excluded from the limitation on maximum insurance authority set forth in section 728(a) of the Public Health Service Act. Notwithstanding the provisions of sec- 42 USC 294a. tion 729(a) of the Public Health Service Act, the reissued loan shall 42 USC 294b. be made in an amount, including outstanding principal, capitalized interest, accrued unpaid interest not yet capitalized, and authorized late charges. The proceeds of each such loan will be paid by the lender to the holder of the original loan being reissued and the borrower's obligation to that holder on that loan shall be discharged.
 * ,t and (C) the insurance on such loan is in full force and effect; and

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Page:United States Statutes at Large Volume 100 Part 2.djvu/384

 100 STAT. 1486

PUBLIC LAW 99-498—OCT. 17, 1986

"(2) Except as otherwise specifically provided for under the provisions of this section, the terms of any reissued loan shall be the same as the terms of the original loan. The maximum repayment period for a loan reissued under this section shall not exceed the remainder of the period which would have been permitted on the original loan. If the lender holds more than one loan insured under subpart I of 42 USC 294. part C of title VII of the Public Health Service Act, the maximum repayment period for all such loans may extend to the latest date permitted for any individual loan. Any reissued loan may be consolidated with any other Health Education Assistance Loan as provided 42 USC 201 note, in the Public Health Service Act, and, with the concurrence of the borrower, repayment of any such loans during any period may be made in amounts that are less than the interest that accrues on such loans during that period. "(g) TERMINATION OF BORROWER ELIGIBILITY.—The status of an individual as an eligible combined payment plan borrower terminates upon receipt of a combined payment plan. "(h) FEES AND PREMIUMS.—No origination fee or insurance premium shall be charged to the borrower on any combined payment plan, and no origination fee or insurance premium shall be payable by the lender to the Secretary of Health and Human Services. "(i) COMMENCEMENT OF REPAYMENT.—Repa3rment of a combined

payment plan shall commence within 60 days after the later of the date of acceptance of the lender's offer to administer a combined payment plan, the making of the consolidation loan or the reissuance of any Health Education Assistance Loans pursuant to subsection (e). .. ^ i: i-. ^«i^ "NATIONAL STUDENT LOAN DATA SYSTEM

20 USC 1092b.

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485B. (a) AUTHORITY OF THE SECRETARY.^—In order to assure improved and accurate information on student loan indebtedness and institutional lending practices, and to insure improved compliance with the repayment and loan limitation provisions of this title, the Secretary is authorized to establish and carry out a nationwide computerized student loan data system containing information regarding loans made, insured, or guaranteed under part B and loans made under part E. The information in the data system shall include— "(1) the exact amount of such loans made; "(2) the names, social security numbers, and addresses of the borrowers (and in the case of dependent students the names and addresses of the parents of such students); "(3) the guaranty agency responsible for the guarantee of the loan in the case of loans made, insured, or guaranteed under part B; and "(4) the institution of higher education or organization responsible for loans made under part E. The information to be stored in the student loan data system established by this subsection shall be furnished by guaranty agencies for loans made, insured, or guaranteed under part B and by institutions of higher education for loans made under part E. "(b) ACCESS TO INFORMATION.—(1) Subject to the provisions of paragraphs (2) and (3), and notwithstanding the provisions of section 552(a) of title 5, United States Code, relating to freedom of information, access to information in the data system established and maintained pursuant to subsection (a) of this section shall be re"SEC.

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Page:United States Statutes at Large Volume 100 Part 2.djvu/385

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1487

stricted to individuals and Federal agencies, specifically authorized by the Secretary to have such access. "(2) In carrying out this subsection, the Secretary shall approve access to information for— "(A) research on student loan practices, student and parental indebtedness, repayment and debt collection trends, Federal costs associated with the guaranteed student loan program under part B of this title, including the cost of interest subsidies and special allowance payments; "(B) the improvement of Federal debt collection practices and Federal criminal prosecutions under this title, relating to loans made, insured, or guaranteed under part B or loans under part E of this title; "(C) furnishing information in response to an official request ' made by any committee of the Congress; and "(D) any guaranty agency under part B, except that such access shall be limited to the name, social security number, and the amount of indebtedness, including the amount borrowed each year, of a borrower for whom the guaranty agency provides insurance. "(3) No name, address, or social security number of any individual borrower may be made available to any requesting individual. Federal agency, or organization, unless the Secretary determines that the request is connected with the enforcement or debt collection responsibilities imposed by Federal law on such individual, agency, or organization. "(4) In carrying out this subsection, the Secretary shall require Reports, semiannual reports (continuing the information set forth in subsection (a)(1) and (2)) from each guaranty agency responsible for the guarantee of loans made, insured, or guaranteed under part B and any institution of higher education or proprietary institution responsible for a loan made under part E. "(c) VERIFICATION NOT REQUIRED.—The Secretary shall not require lenders, guaranty agencies, or institutions of higher education to verify information or obtain eligibility or other information through the National Student Loan Data System prior to making, guaranteeing, or certifying a loan under part B or part E. "(d) REPORT TO CONGRESS.—The Secretary shall prepare and submit to the Congress twice in each fiscal year a report describing the results obtained by the establishment and operation of the student loan data system authorized by this section. TRAINING IN FINANCIAL AID AND STUDENT SUPPORT SERVICES

486. (a) PROGRAM AUTHORITY.—The Secretary is authorized Contracts. to enter into contracts with appropriate public agencies or nonprofit 20 USC 1093. private organizations or institutions of higher education to provide training for financial aid administrators, student peer counselors, student staff or volunteers, and other part-time staff and volunteers who provide financial aid, admissions and academic counseling and outreach, and student support programs in postsecondary education in postsecondary institutions, communities, or statewide programs. "(b) USE OF FUNDS.—Financial assistance under this section may be used for— "(1) development of materials and in-service training and career awareness programs; "SEC.

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Page:United States Statutes at Large Volume 100 Part 2.djvu/386

 100 STAT. 1488

PUBLIC LAW 99-498—OCT. 17, 1986

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"(2) operation of short-term training institutes designed to improve the skills and career awareness of participants in such • institutes; and "(3) special programs to assist in training of students and part-time staff or volunteers at institutions eligible for assistance under title III of this Act. "(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated $1,000,000 to carry out the provisions of this section for fiscal year 1981 and for each of the succeeding fiscal years ending prior to October 1, 1986.

' r • 20 USC 1094.

Reports.

"SEC. 487.

"PROGRAM PARTICIPATION AGREEMENTS (a)

REQUIRED FOR PROGRAMS OF ASSISTANCE; CON-

TENTS,—In order to be an eligible institution for the purposes of any program authorized under this title, an institution must be an institution of higher education or an eligible institution (as that term is defined for the purpose of that program) and shall, except with respect to a program under subpart 3 of part A, enter into a program participation agreement with the Secretary. The agreement shall condition the initial and continuing eligibility of an institution to participate in a program upon compliance with the following requirements: "(1) The institution will use funds received by it for any program under this title and any interest or other earnings thereon solely for the purpose specified in and in accordance . with the provision of that program. "' " *^ ^ "(2) The institution shall not charge any student a fee for processing or handling any application, form, or data required to determine the student's eligibility for assistance under this title or the amount of such assistance, or for completing or handling the Federal Student Assistance Report provided for in section 483(e). -0 "(3) The institution will establish and maintain such administrative and fiscal procedures and records as may be necessary to ensure proper and efficient administration of funds received from the Secretary or from students under this title. "(4) The institution will comply with the provisions of subsec^ ^' tion (b) of this section and the regulations prescribed under that subsection, relating to fiscal eligibility. "(5) The institution will submit reports to the Secretary and, in the case of an institution participating in a program under part B or part E, to holders of loans made to the institution's students under such parts at such times and containing such information as the Secretary may reasonably require to carry out the purpose of this title. "(6) The institution will not provide any student with any statement or certification to any lender under part B that qualifies the student for a loan or loans in excess of the amount that student is eligible to borrow in accordance with sections 425(a), 428(a)(2), and 428(b)(1)(A) and (B). "(7) The institution will comply with the requirements of ^" section 485. fs "(8) In the case of an institution that advertises job placement rates as a means of attracting students to enroll in the institu-- tion, the institution will make available to prospective students, at or before the time of application, the most recent available

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Page:United States Statutes at Large Volume 100 Part 2.djvu/387

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1489

data concerning employment statistics, graduation statistics, and any other information necessary to substantiate the truthfulness of the advertisements. "(9) In the case of an institution participating in a program State and local under part B, the institution will inform all eligible borrowers governments. enrolled in the institution about the availability and eligibility of such borrowers for State grant assistance from the State in which the institution is located, and will inform such borrowers from another State of the source for further information concerning such assistance from that State. "(10) The institution certifies that it has in operation a drug abuse prevention program that is determined by the institution to be accessible to any officer, employee, or student at the institution. "(b) HEARINGS.—(1) An institution that has received written notice of a final audit or program review determination and that desires to have such determination reviewed by the Secretary shall submit to the Secretary a written request for review not later than 45 days after receipt of notification of the final audit or program review determination. "(2) The Secretary shall, upon receipt of written notice under paragraph (1), arrange for a hearing on the record and notify the institution within 30 days of receipt of such notice the date, time, and place of such hearing. Such hearing shall take place not later than 120 days from the date upon which the Secretary notifies the institution. "(c) AUDITS; FINANCIAL RESPONSIBILITY; ENFORCEMENT OF STAND-

ARDS.—(1) Notwithstanding any other provisions of this title, the Secretary is authorized to prescribe such regulations as may be necessary to provide for— "(A)(i) except as provided in clause (ii), a financial and compliance audit of an eligible institution, with regard to any funds obtained by it under this title or obtained from a student or a parent who has a loan insured or guaranteed by the Secretary under this title, 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 "(ii) with regard to an eligible institution which is audited under chapter 75 of title 31, United States Code, deeming such 31 USC 7501 et i audit to satisfy the requirements of clause (i) for the period seq. covered by such audit; "(B) in matters not governed by specific program provisions, t. the establishment of reasonable standards of financial responsibility and appropriate institutional capability for the administration by an eligible institution of a program of student financial aid under this title; "(C) the establishment, by each eligible institution under part B responsible for furnishing to the lender the statement re- ? % quired by section 428(a)(2)(A)(i), of policies and procedures by which the latest known address and enrollment status of any student who has had a loan insured under this part and who has either formally terminated his enrollment, or failed to re-enroll i, on at least a half-time basis, at such institution, shall be fur-

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