text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/325

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1427

in the Treasury subject to delivery upon order by the Association. The engraved plates, dies, bed pieces, and so forth, executed in connection therewith shall remain in the custody of the Secretary of the Treasury. The Association shall reimburse the Secretary of the Treasury for any expenditures made in the preparation, custody, and delivery of such obligations. The Secretary of the Treasury is authorized to promulgate regulations on behalf of the Association so that the Association may utilize the book-entry system of the Federal Reserve Banks. "(n) REPORT ON OPERATIONS AND ACTIVITIES.—The Association shall, as soon as practicable after the end of each fiscal year, transmit to the President and the Congress a report of its operations and activities during each year. "(o) LOAN CONSOUDATIONS.—

"(1) IN GENERAL.—The Association or its designated agent may, upon request of a borrower, consolidate loans received under this title in accordance with section 428C. "(2) USE OF EXISTING AGENCIES AS AGENT.—The Association in making loans pursuant to this subsection in any State served by a guaranty agency or an eligible lender in a State described in section 435(d)(l)(D) or (F) may designate as its agent such agency or lender to perform such functions as the Association determines appropriate. Any agreements made pursuant to this subparagraph shall be on such terms and conditions as agreed upon by the Association and such agency or lender,

State and local governments.

"(p) ADVANCES FOR DIRECT LOANS BY GUARANTY A G E N C I E S. ^

"(1) IN GENERAL.—The Association shall make advances in each fiscal year from amounts available to it to each guaranty agency and eligible lender described in subsection 428(h)(1) which has an agreement with the Association which sets forth that advances are necessary to enable such agency or lender to make student loans in accordance with section 428(h) and that such advances will be repaid to the Association in accordance with such terms and conditions as may be set forth in the agreement and agreed to by the Association and such agency or lender. Advances made under this subsection shall not be subject to subsection (d)(2) of this section. "(2) LIMITATION.—No advance may be made under this subsection unless the guaranty agency or lender makes an application to the Association, which shall be accompanied by such information as the Association determines to be reasonably necessary, "(q) LENDER OF LAST RESORT.— "(1) ACTION AT REQUEST OF SECRETARY.—(A) Whenever the Secretary determines that eligible borrowers in a State not served by a guaranty agency or an eligible lender in a State described in section 435(d)(l)(D) or (F) are seeking and are unable to obtain loans under this part, the Association or its designated agent may begin making loans in accordance with this subsection at the request of the Secretary. The Association shall give preference to such States in making loans under this subsection. "(B) Loans made pursuant to this subsection shall be insurable by the Secretary under section 429 with a certificate of comprehensive insurance coverage provided for under section 429(b)(l).

71-19A 0 -

12: QL. 3 Part 2

State and local governments.

Insurance,

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/326

 100 STAT. 1428 State and local governments.

State and local governments.

20 USC 1071 note.

PUBLIC LAW 99-498—OCT. 17, 1986 "(2) ISSUANCE AND COVERAGE OF LOANS,—(A) Whenever

the

Secretary, after consultation with, and with the agreement of, representatives of the guaranty agency in a State, or an eligible lender in a State described in section 435(d)(1)(D), determines that a substantial portion of eligible borrowers in such State or within an area of such State are seeking and are unable to obtain loans under this part, the Association or its designated agent may begin making loans in accordance with this subsection at the request of the Secretary. "(B) Loans made pursuant to this subsection shall be insurable by the agency identified in subparagraph (A) having an agreement pursuant to section 428(b). For loans insured by such agency, the agency shall provide the Association with a certificate of comprehensive insurance coverage, if the Association and the agency have mutually agreed upon a means to determine that the agency has not already guaranteed a loan under this part to a student which would cause a subsequent loan made by the Association to be in violation of any provision under this part. "(3) TERMINATION OF LENDING.—The Association or its designated agent shall cease making loans under this part in any State at such time as it is determined by the Secretary, with regard to loans made under paragraph (1), or by any party to the agreement required by paragraph (2), that— "(A) the conditions which caused the implementation of this subsection have ceased to exist; or ( "(B) the implementation of this subsection has either (i) further reduced the availability of loans from other sources in the applicable geographical area, or (ii) inhibited the formation in a State of an agency which would have an agreement pursuant to section 428(b) of this part which would have the responsibility of developing local sources of funds for student loans.". (b) EFFECTIVE DATES.—The changes made in part B of title IV of the Act by the amendment made by subsection (a) of this section shall take effect on the date of enactment of this Act, except— (1) as otherwise provided in such part B; (2) the changes in sections 427(a)(2)(C) and 428(b)(l)(M) of the Act (other than clause (ix) of each such section) shall apply only to loans made to cover the costs of instruction for periods of enrollment beginning on or after July 1, 1987, to individuals who are new borrowers on that date; (3) the changes made in sections 425(a), 428(b)(l)(A), and .; 428(b)(l)(B) of the Act shall apply with respect only to loans ". made to cover the costs of instruction for periods of enrollment beginning on or after January 1, 1987; (4) the changes made in subsections (a), (b), and (d) of section ^ 433 of the Act shall apply with respect only to loans made to cover the costs of instruction for periods of enrollment beginning on or after January 1, 1987; (5) the changes in section 428(b)(l)(H) shall apply with respect ' only to loans for which the borrower files an application on or ,^ after July 1, 1987; (6) the changes in sections 435(d)(5) and 438(d) of the Act shall take effect 30 days after the date of enactment of this Act; and (7) the changes made in section 438(b) shall take effect with respect to loans made to cover the costs of instruction for

�

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/327

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1429

periods of enrollment beginning on or after 30 days after the date of enactment of this Act. (c) CHANGES EFFECTIVE WITHOUT REGARD TO REGULATIONS; RE-

PUBLICATION OF REGULATIONS.—The changes made in part B of title IV of the Act by the amendment made by subsection (a) of this section shall be effective in accordance with subsection (b) of this section without regard to whether such changes are reflected in the regulations prescribed by the Secretary of Education for the purpose of such part. (d) NEW BORROWERS.—For the purpose of this section, the term "new borrower" means, with respect to any date, an individual who on that date has no outstanding balance of principal or interest owing on any loan made, insured, or guaranteed under part B of title IV of the Act.

20 USC 1071 note.

20 USC 1071 note.

SEC. 403. WORK STUDY REAUTHORIZED. (a) AMENDMENT.—Part C of title IV of the Act is amended to read as follows: "PART C—WORK-STUDY PROGRAMS P U R P O S E; APPROPRIATIONS AUTHORIZED

"SEC. 441. (a) PURPOSE.—The purpose of this part is to stimulate and promote the part-time employment of students who are enrolled as undergraduate, graduate, or professional students and who are in need of earnings from employment to pursue courses of study at eligible institutions. "(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this part $656,000,000 for flscal year 1987 and such sums as may be necessary for each of the 4 succeeding fiscal years.

42 USC 2751.

"ALLOCATION OF FUNDS "SEC.

442. (a) ALLOCATION BASED ON PREVIOUS ALLOCATION.—(1)

From the amount appropriated pursuant to section 441(b) for each flscal year, the Secretary shall flrst allocate to each eligible institution for each succeeding flscal year, an amount equal to 100 percent of the amount such institution received and used under this part for flscal year 1985. "(2)(A) From the amount so appropriated, the Secretary shall next allocate to each eligible institution that began participation in the program under this part after flscal year 1985 but is not a flrst or second time participant, an amount equal to the greater of— "(i) $5,000; or "(ii) 90 percent of the amount received and used under this part for the flrst year it participated in the program. "(B) From the amount so appropriated, the Secretary shall next allocate to each eligible institution that began participation in the program under this part after fiscal year 1985 and is a first or second time participant, an amount equal to the greatest of— "(i) $5,000; "(ii) an amount equal to (I) 90 percent of the amount received and used under this part in the second preceding fiscal year by eligible institutions offering comparable programs of instruc% tion, divided by (II) the number of students enrolled at such y comparable institutions in such fiscal year, multiplied by (III)

42 USC 2752.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/328

 100 STAT. 1430

PUBLIC LAW 99-498—OCT. 17, 1986

the number of students enrolled at the applicant institution in such fiscal year; or 'P'j ' "(iii) 90 percent of the institution's allocation under this part for the preceding fiscal year. "(C) Notwithstanding subparagraphs (A) and (B) of this paragraph, the Secretary shall allocate to each eligible institution which— "(i) was a first-time participant in the program in fiscal year 1986 or any subsequent fiscal year, and, >;;i. f "(ii) received a larger amount under this subsection in the e second year of participation, an amount equal to 90 percent of the amount it received under this subsection in its second year of participation. "(3)(A) If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under paragraph (1) of this subsection, then the amount of the allocation to each such institution shall be ratably reduced. "(B) If the amount appropriated for any fiscal year is more than the amount required to be allocated to all institutions under paragraph (1) but less than the amount required to be allocated to all institutions under paragraph (2), then— "(i) the Secretary shall allot the amount required to be allo, J,; cated to all institutions under paragraph (1), and "(ii) the amount of the allocation to each institution under paragraph (2) shall be ratably reduced. "(C) If additional amounts are appropriated for any such fiscal year, such reduced amounts shall be increased on the same basis as they were reduced (until the amount allocated equals the amount required to be allocated under paragraphs (1) and (2) of this subsection). "(b) ALLOCATION OF EXCESS BASED ON PRO RATA SHARE.—From

,. '

one-quarter of the remainder of the amount appropriated pursuant to section 441(b) for any fiscal year (after making the allocations a* eligible institution an amount which bears the same ratio to such one-quarter as the amount the eligible institution receives for such fiscal year under subsection (a) bears to the amount all such institutions receive under such subsection (a). "(c) ALLOCATION OF EXCESS BASED ON SHARE OF EXCESS ELIGIBLE
 * f required by subsection (a)), the Secretary shall allocate to each

AMOUNTS.—(1) From three-quarters of the remainder of the amount appropriated pursuant to section 441(b) after making the allocations required by subsection (a), the Secretary shall allocate to each eligible institution which has an excess eligible amount an amount which bears the same ratio to such remainder as such excess eligible amount bears to the sum of the excess eligible amounts of all such eligible institutions (having such excess eligible amounts). "(2) For any eligible institution, the excess eligible amount is the amount, if any, by which— "(A)(i) the amount of that institution's need (as determined under subsection (d)), divided by (ii) the sum of the need of all institutions (as so determined), multiplied by (iii) the amount appropriated pursuant to section 441(b) for the fiscal year; i'* exceeds "(B) the amount required to be allocated to that institution under subsection (a). "(d) DETERMINATION OF INSTITUTION'S NEED.—(1) The amount of an institution's need is equal to the sum of the self-help need of the

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/329

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1431

institution's eligible undergraduate students and the self-help need of the institution's eligible graduate and professional students. "(2) To determine the self-help need of an institution's eligible undergraduate students, the Secretary shall— "(A) establish various income categories for dependent and independent undergraduate students; "(B) establish an expected family contribution for each income category of dependent and independent undergraduate students, determined on the basis of the average expected family contribution (computed in accordance with part F of this title) of a representative sample within each income category for the second preceding fiscal year; "(C) compute 25 percent of the average cost of attendance for g all undergraduate students; "(D) multiply the number of eligible dependent students in each income category by the lesser of— "(i) 25 percent of the average cost of attendance for all undergraduate students determined under subparagraph (C);or "(ii) the average cost of attendance for all undergraduate students minus the expected family contribution determined under subparagraph (B) for that income category, except that the amount computed by such subtraction shall not be less than zero; "(E) add the amounts determined under subparagraph (D) for each income category of dependent students; and "(F) multiply the number of eligible independent students in each income category by the lesser of— r "(i) 25 percent of the average cost of attendance for all undergraduate students determined under subparagraph (C); or i. "(ii) the average cost of attendance for all undergraduate students minus the expected family contribution determined under subparagraph (B) for that income category, except that the amount computed by such subtraction for any income category shall not be less than zero; "(G) add the amounts determined under subparagraph (F) for each income category of independent students; and "(H) add the amounts determined under subparagraphs (E) and (G). "(3) To determine the self-help need of an institution's eligible graduate and professional students, the Secretary, for academic year 1988-1989 shall use the procedures employed for academic year 1986-1987, and, for any subsequent academic years, the Secretary shall— "(A) establish various income categories of graduate and professional students; "(B) establish an expected family contribution for each 'i- income category of graduate and professional students, determined on the basis of the average expected family contribution (computed in accordance with part F of this title) of a representative sample within each income category for the second preceding fiscal year; "(C) determine the average cost of attendance for all graduate and professional students; "(D) subtract from the average cost of attendance for all graduate and professional students (determined under subpara-

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/330

 100 STAT. 1432

PUBLIC LAW 99-498—OCT. 17, 1986

fc *? graph (O), the expected family contribution (determined under ? subparagraph (B)) for each income category, except that the «•' amount computed by such subtraction for any income category shall not be less than zero; bf! "(E) multiply the amounts determined under subparagraph (D) by the number of eligible students in each category; and ^ ' "(F) add the amounts determined under subparagraph (E) of this paragraph for each income category. "(4)(A) For purposes of paragraphs (2) and (3), the term 'average cost of attendance' means the average of the attendance costs for undergraduate students and for graduate and professional students, which shall include (i) tuition and fees determined in accordance with subparagraph (B), (ii) standard living expenses determined in accordance with subparagraph (C), and (iii) books and supplies determined in accordance with subparagraph (D). "(B) The average undergraduate and graduate and professional tuition and fees described in subparagraph (A)(i) shall be computed on the basis of information reported by the institution to the Secretary, which shall include (i) total revenue received by the institution from undergraduate and graduate tuition and fees for the second year preceding the year for which it is applying for an allocation, and (ii) the institution's enrollment for such second preceding year. "(C) The standard living expense described in subparagraph (A)(ii) is equal to three-fourths in the Pell Grant family size offset for a single independent student. "(D) The allowance for books and supplies described in subparagraph (A)(iii) is equal to $450. "(e) REALLOCATION OF EXCESS ALLOCATIONS.—(1) If an institution returns to the Secretary any portion of the sums allocated to such institution under this section for any fiscal year the Secretary shall reallocate such excess in accordance with paragraph (2). Any sums reallocated under this subsection may be used in accordance with section 445(a)(2). "(2) The Secretary shall reallot 25 percent of the amount available pursuant to paragraph (1) to eligible institutions for use in initiating, improving, and expanding programs of community servicelearning conducted in accordance with section 448 of this part. The Secretary shall allocate the remainder of the amounts available pursuant to paragraph (1) to eligible institutions based upon the criteria described in subsection (c). "(f) FiuNG DEADUNES.—The Secretary shall, from time to time, set dates before which institutions must file applications for allocations under this part. "GRANTS FOR WORK-STUDY PROGRAMS

42 USC 2753.

"SEC. 443. (a) AGREEMENTS REQUIRED.—The Secretary is authorized to enter into agreements with institutions of higher education under which the Secretary will make grants to such institutions to assist in the operation of work-study programs as provided in this part. "(b) CONTENTS OF AGREEMENTS.—An agreement entered into pursuant to this section shall— "(1) provide for the operation by the institution of a program «•' for the part-time employment of its students in work for the institution itself or work in the public interest for a Federal,

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/331

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1433

State, or local public agency or private nonprofit organization under an arrangement between the institution and such agency or organization, and such work— "(A) will not result in the displacement of employed Contracts. workers or impair existing contracts for services; "(B) will be governed by such conditions of employment as will be appropriate and reasonable in light of such factors as type of work performed, geographical region, and proficiency of the employee; "(C) does not involve the construction, operation, or maintenance of so much of any facility as is used or is to be used for sectarian instruction or as a place for religious worship; and "(D) will not pay any wage to students employed under this subpart that is less than the current Federal minimum wage as mandated by section 6(a) of the Fair Labor Standards Act of 1938; 29 USC 206. "(2) provide that funds granted an institution of higher education, pursuant to section 443, may be used only to make payments to students participating in work-study programs, except that— "(A) an institution may use not to exceed 10 percent of the funds granted to the institution in any fiscal year to carry out the work study program described in section 447 at the increased Federal share specified in clause (6)(B) of this subsection, and "(B) an institution may use a portion of the sums granted to it to meet administrative expenses in accordance with section 489 of this Act, may use a portion of the sums granted to it to meet the cost of a job location and development program in accordance with section 446 of this part, and may transfer funds in accordance with the provisions of section 488 of this Act; "(3) provide that in the selection of students for employment under such work-study program, only students who demonstrate financial need in accordance with part F of this title, and who meet the requirements of section 484 will be assisted, except that, if the institution's grant under this part is directly or indirectly based in part on the financial need demonstrated by students attending the institution less than full time, a reasonable proportion of the institution's grant shall be made available to such students; "(4) provide that for a student employed in a work-study program under this part, at the time income derived from any employment (including non-work-study or both) is in excess of the determination of the amount of such student's need by more than $200, continued employment shall not be subsidized with funds appropriated under this part; "(5) provide that the Federal share of the compensation of students employed in the work study program in accordance with the agreement will not exceed 80 percent for academic years 1987-1988 and 1988-1989, 75 percent for academic year 1989-1990, and 70 percent for academic year 1990-1991 and succeeding academic years, except that— "(A) the Federal share may exceed such amounts of such compensation if the Secretary determines, pursuant to regulations promulgated by the Secretary establishing

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/332

 100 STAT. 1434

i

PUBLIC LAW 99-498—OCT. 17, 1986

objective criteria for such determinations, that a Federal share in excess of such amounts is required in furtherance of the purpose of this part; and "(B) the Federal share of the compensation of the students employed in the work study for community servicelearning programs described in section 447 from funds available under clause (2)(A) in accordance with the agreer,,, ment will not exceed 90 percent of such compensation; "(6) include provisions to make employment under such workstudy program reasonably available (to the extent of available funds) to all eligible students in the institution in need thereof, and to make equivalent employment offered or arranged by the institution reasonably available (to the extent of available funds) to all students in the institution who desire such employment; "(7) provide assurances that employment made available from funds under this part will, to the maximum extent practicable, complement and reinforce the educational program or vocational goals of each student receiving assistance under this part; "(8) provide assurances, in the case of each proprietary institution, that students attending the proprietary institution receiving gissistance under this part who are employed by the institution may be employed in jobs— "(A) on campus only; "(B) that, to the maximum extent practicable, complement and reinforce the educational programs or vocational goals of such students; and "(C) furnishing student services, as determined by the Secretary pursuant to regulations, except that no student shall be employed in any position that would involve the solicitation of other potential students to enroll in the school; and "(9) include such other reasonable provisions as the Secretary shall deem necessary or appropriate to carry out the purpose of this part. "(c) PRIVATE SECTOR EMPLOYMENT AGREEMENT.—In addition to the

agreement described in subsection (b), an institution of higher education may, at its option, enter into an additional agreement with the Secretary which shall— "(1) provide for the operation by the institution of a program of part-time employment of its students in work for a private for-profit organization under an arrangement between the institution and such organization that complies with the requirements of subparagraphs (A) through (D) of subsection (b)(1); "(2) provide that the institution will use not more than 25 percent of the funds made available to such institution under this part for any fiscal year for the operation of the program 1described in paragraph (1); "(3) provide that, notwithstanding subsection (b)(5), the Federal share of the compensation of students employed in such program will not exceed 60 percent for academic years 1987'[ 1988 and 1988-1989, 55 percent for academic year 1989-1990, and 50 percent for academic year 1990-1991 and succeeding academic years, and that the non-Federal share of such compensation will be provided by the private for-profit organization in which the student is employed;

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/333

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1435

"(4) provide that jobs under the work study program will be academically relevant; and "(5) provide that the for-profit organization will not use funds made available under this part to pay any employee who would otherwise be employed by the organization. SOURCES OF MATCHING FUNDS

"SEC. 444. Nothing in this part shall be construed as restricting the source (other than this part) from which the institution may pay its share of the compensation of a student employed under a workstudy program covered by an agreement under this part, and such share may be paid to such student in the form of services and equipment (including tuition, room, board, and books) furnished by such institution.

20 USC 2754.

"FLEXIBLE USE OF FUNDS

445. (a) CARRY-OVER AUTHORITY.—(1) Of the sums granted to an eligible institution under this part fot any fiscal year, 10 percent may, at the discretion of the institution, remain available for expenditure during the succeeding fiscal year to carry out programs under this part. "(2) Any of the sums so granted to an institution for a fiscal year which are not needed by that institution to operate work-study programs during that fiscal year, and which it does not wish to use during the next fiscal year as authorized in the preceding sentence, shall remain available to the Secretary for making grants under section 443 to other institutions in the same State until the close of the second fiscal year next succeeding the fiscal year for which such funds were appropriated. "(b) CARRY-BACK AUTHORITY.—Up to 10 percent of the sums the Secretary determines an eligible institution may receive from funds which have been appropriated for a fiscal year may be used by the Secretary to make grants under this part to such institution for expenditure during the fiscal year preceding the fiscal year for which the sums were appropriated. "SEC.

42 USC 2755.

Grants. State and local governments.

Grants.

JOB LOCATION AND DEVELOPMENT PROGRAMS "SEC. 446. (a) AGREEMENTS REQUIRED.—(1) The

Secretary is

au-

thorized to enter into agreements with eligible institutions under which— "(A) such institution may use not more than 10 percent or $30,000 of its allotment under section 442, whichever is less, to I establish or expand a program under which such institution, separately or in combination with other eligible institutions, locates and develops jobs for currently enrolled students; and "(B) such institution may use not more than 10 percent or $20,000 of its allotment under section 442, whichever is less, to establish or expand a program under which such institution, separately or in combination with other eligible institutions and through formal or informal consultation with local nonprofit, governmental, educational, and community-based organizations, locates and develops community services jobs for students eligible under this part. "(2) Jobs located and developed under subparagraph (A) or (B) of paragraph (1) shall be jobs which are suitable to the scheduling and

42 USC 2756.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/334

 100 STAT. 1436

PUBLIC LAW 99-498—OCT. 17, 1986

other needs of such students and which, to the maximum extent practicable, complement and reinforce the educational programs or vocational goals of such students. "(b) CONTENTS OF AGREEMENTS.—Agreements under subsection (a) shall"(1) provide that the Federal share of the cost of any program under this section will not exceed 80 percent of such cost; "(2) provide satisfactory assurance that funds available under .? >; ' ] 02 •?:: this section will not be used to locate or develop jobs at an eligible institution unless such jobs directly relate to the objectives described in subsection (a)(1)(B) of this section; "(3) provide satisfactory assurance that the institution will continue to spend in its own job location and development programs, from sources other than funds received under this section, not less than the average expenditures per year made during the most recent 3 fiscal years preceding the effective date of the agreement; . *', i 'i "(4) provide satisfactory assurance that funds available under this section will not be used for the location or development of jobs for students to obtain upon graduation, but rather for the location and development of jobs available to students during and between periods of attendance at such institution; Contracts. "(5) provide satisfactory assurance that the location or development of jobs pursuant to programs assisted under this section will not result in the displacement of employed workers or impair existing contracts for services; "(6) provide satisfactory assurance that Federal funds used for the purpose of this section can realistically be expected to help n ji generate student wages exceeding, in the aggregate, the amount of such funds, and that if such funds are used to contract with -T> another organization, appropriate performance standards are part of such contract; and Reports. "(7) provide that the institution will submit to the Secretary .? an annual report on the uses made of funds provided under this . section and an evaluation of the effectiveness of such program in benefiting the students of such institution. "(c) DEFINITION OF COMMUNITY SERVICE.—For the purpose of this section, the term 'community services' means services which are identified by an institution of higher education, through formal or ?.;"')t: ' > informal consultation with local nonprofit, governmental, and community-based organizations, as designed to improve the quality of life for community residents, particularly low-income individuals, or to solve particular problems related to their needs including, but not limited to, such fields as health care, child care, literacy training, education (including tutorial services), housing and neighborhood improvement, rural development, and community improvement. WORK STUDY FOR COMMUNITY SERVICE-LEARNING ON BEHALF OF LOWI N C O M E INDIVIDUALS AND FAMIUES

42 USC 2756a.

"SEC. 447. (a) PURPOSE.—The purpose of this section is to encourage and enable institutions of higher education to develop work study programs involving eligible students in community servicelearning designed to develop, improve, or expand services for lowincome individuals and families or to solve particular problems related to the needs of low-income individuals.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/335

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1437

"(b) DEFINITIONS.—For the purpose of this section— "(1) 'community service-learning program' means a program of student work that— "(A) provides tangible community services for or on behalf of low-income individuals or families; and "(B) to the maximum extent practicable, provides partici;,, pating students with work-learning opportunities which complement and reinforce their educational programs or ,^.; vocational goals; and "(2) 'community services' means services which are identified by an institution of higher education, through formal or informal consultation with local nonprofit, governmental, and community-based organizations, as designed to improve the quality of life for community residents, particularly low-income individuals, or to solve particular problems related to their needs including, but not limited to, such fields as health care, child care, literacy training, education (including tutorial services), welfare, social services, transportation, housing and neighborhood improvement, public safety, crime prevention and control, recreation, rural development, and community improvement. "(c) USE OF OTHER FUNDS TO CONDUCT PROGRAM.—Each institu-

tion participating under this part may use funds made available under the last sentence of section 489(a) to conduct that institution's program of community service-learning, including— "(1) development of mechanisms to assure the academic quality of the student experience, "(2) assuring student access to educational resources, expertise, and supervision necessary to achieve community service objectives, and "(3) collaboration with public and private nonprofit agencies in the planning, development, and administration of such programs.", (b) EFFECTIVE DATE.—Sections 443(c), 446, and 447 of the Act as 42 USC 2753 amended by this section shall apply to periods of enrollment begin- note. ning on or after July 1, 1987. SEC. 404, DEMONSTRATION PROJECT AUTHORIZED.

The Act is amended by adding after part C the following: "PART D—INCOME CONTINGENT DIRECT LOAN DEMONSTRATION PROJECT STATEMENT OF PURPOSE

"SEC. 451. It is the purpose of this part to examine the feasibility 20 USC 1087a. of a direct loan program which uses the income contingent repayment method in order to increase the economic and full use of direct student loan funds. DEMONSTRATION PROJECT AUTHORIZED "SEC. 452. (a) GENERAL AUTHORITY.—The Secretary shall, from the

amounts appropriated each fiscal year, carry out demonstration projects in accordance with the provisions of this part. "(b) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of

making contributions to student loan funds established pursuant to this part, there are authorized to be appropriated $5,000,000 for

20 USC I087b.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/336

 100 STAT. 1438

PUBLIC LAW 99-498—OCT. 17, 1986

fiscal year 1987 and such sums as may be necessary for each of the 4 succeeding fiscal years. "(c) ALLOTMENT; MAXIMUM NUMBER OF GRANTS.—(1) The Secretary shall allot the amounts appropriated in each fiscal year pursuant to subsection (b) among institutions of higher education which desire to participate in the pilot project authorized by this part and which have agreements with the Secretary under section 453. "(2) The Secretary may not enter into agreements with more than 10 institutions of higher education under this part. '

20 USC 1087c.

0; V

"AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION

"SEC. 453. An agreement with an institution of higher education under this part shall— "(1) provide for the establishment and maintenance of a student loan fund for the purpose of this part; "(2) provide for the deposit in such fund of Federal capital contributions from funds appropriated pursuant to section 452(b); "(3) provide for the deposit in such fund of a capital contribution by such institution equal to not less than one-ninth of the amount of the Federal capital contribution described in paragraph (2); "(4) provide for the deposit in such fund of collections of principal and interest on student loans made from deposited funds and any other earnings of such funds; "(5) provide that such student loan fund shall be used only for— "(A) loans to students, in accordance with the provisions of this part; "(B) administrative expenses; and "(C) costs of litigation, and other collection costs agreed to by the Secretary in connection with the collection of a loan from the fund (and interest thereon) or a charge assessed pursuant to regulations; "(6) provide that repayment of the loans made from such student loan funds will be made in accordance with a repayment schedule, which will be adjusted annually on the basis of the total amount borrowed by the student and the income of the student borrower, together with such adjustments in the schedule as the Secretary and the institution determine will best carry out the purpose of this part, except that for the first 2 years of the repayment period the schedule may require a fixed payment plan; "(7) provide for the distribution of assets from student loan funds under this part in accordance with criteria prescribed by the Secretary, based upon the provisions of section 466; and "(8) provide for such other assurances and limitations as the Secretary may reasonably require. i *

20 USC I087d.

"TERMS OF LOAN UNDER THE PILOT PROGRAM

"SEC. 454. (a) CONDITIONS, LIMITATIONS, AND REQUIREMENTS.—(1)

Loans from any student loan fund established pursuant to an agreement under section 453, to any student by any institution shall, subject to such conditions, limitations, and requirements as the

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/337

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1439

Secretary shall prescribe by regulation, be made on such terms and conditions as the institution may determine. "(2) The aggregate amount of all loans made by institutions of higher education from loan funds established pursuant to agreements under this part to any student may not exceed $17,500. "(3) The total amount of loans made by institutions of higher education from loan funds established pursuant to such agreement for any academic year may not exceed— "(A) $2,500 in the case of a student who is in the first or second academic year of a program of education leading to a bachelor's degree; "(B) $3,500 in the case of a student who is in the third such year; and "(C) $4,500 in the case of a student who is in the fourth and fifth such year. "(4) The interest rate on all such loans shall be the rate equal to the rate obtained for each calendar year (A) by computing the average of the bond equivalent rates of 91-day Treasury bills auctioned for such 3-month period preceding such year, and (B) by adding 3 percent to the resulting percent. "(5) Loans made from loan funds established pursuant to such agreements shall contain such agreements for deferments, interest accrual during deferments, and loan cancellation, as are consistent with the provisions of part E of this title, subject to such modifications as the Secretary may, by regulation, prescribe. "(b) AUTHORITY OF SECRETARY TO PRESCRIBE OTHER TERMS.—The

Secretary may by regulation prescribe such other terms for loans made from loan funds established pursuant to such agreements as the Secretary determines will contribute to carrying out the provisions of this part. "FEASIBILITY STUDY

"SEC. 455. (a) STUDY.—The Secretary shall, based upon the projects assisted under this part, conduct a study of the feasibility of extending the pilot project to a direct student loan fund program of general applicability beginning after September 30, 1990. "(b) REPORT.—The Secretary shall prepare and submit to the Congress a report on the feasibility study begun pursuant to subsection (a) not later than October 1, 1991, and October 1, 1995, together with such recommendations as the Secretary deems appropriate.".

20 USC 1087e.

SEC. 405. AMENDMENT TO PART E OF THE ACT.

(a) AMENDMENT.—Part E of title IV of the Act is amended to read as follows: "PART E—DIRECT LOANS TO STUDENTS IN INSTITUTIONS OF HIGHER EDUCATION APPROPRIATIONS AUTHORIZED

461. (a) PROGRAM AUTHORITY.—The Secretary shall carry 20 USC 1087aa. out a program of stimulating and assisting in the establishment and maintenance of funds at institutions of higher education for the making of low-interest loans to students in need thereof to pursue their courses of study in such institutions. Loans made under this part shall be known as 'Perkins Loans'. "SEC.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/338

 100 STAT. 1440

PUBLIC LAW 99-498—OCT. 17, 1986 "(b) AUTHORIZATION OF APPROPRIATIONS.—(1) For the purpose of

enabling the Secretary to make contributions to student loan funds established under this part, there are authorized to be appropriated $268,000,000 for fiscal year 1987 and such sums as may be necessary for each of the 4 succeeding fiscal years. "(2) In addition there are hereby authorized to be appropriated such sums for fiscal year 1991 and each of the five succeeding fiscal years as may be necessary to enable students who have received loans for academic years ending prior to October 1, 1991, to continue or complete courses of study. "(c) USE OF APPROPRIATIONS.—Any sums appropriated pursuant to subsection O> for any fiscal year shall be available for apportiont) ment pursuant to section 462 and for pa3mients of Federal capital contributions therefrom to institutions of higher education which have agreements with the Secretary under section 463. Such Federal capital contributions and all contributions from such institutions shall be used for the establishment, expansion, and maintenance of student loan funds. " A L L O C A T I O N OF FUNDS

20 USC I087bb.

•

if y

j^

j..

-.

,,.

462. (a) ALLOCATION BASED ON PREVIOUS ALLOCATION.—(1) From the amount appropriated pursuant to section 461(b) for each fiscal year, the Secretary shall first allocate to each eligible institution an amount equal to— "(A) 100 percent of the amount such institution expended under this part for fiscal year 1985, multiplied by "(B) the institution's default penedty, as determined under subsection (f), except that if the institution which has a default rate in excess of the applicable maximum default rate under subsection (g), the institution may not receive an allocation under this paragraph. "(2)(A) From the amount so appropriated, the Secretary shall next allocate to each eligible institution that began participation in the program under this part after fiscal year 1985 but is not a first or second time participant, an amount equal to the greater of— "(i) $5,000; or "(ii) 100 percent of the amount received and expended under this part for the first year it participated in the program. "(B) From the amount so appropriated, the Secretary shall next allocate to each eligible institution that began participation in the program under this part after fiscal year 1985 and is a first or second time participant, an amount equal to the greatest of— "(i) $5,000; "(ii) an amount equal to (I) 90 percent of the amount received and used under this part in the second preceding fiscal year by eligible institutions offering comparable programs of instruction, divided by (II) the number of students enrolled at such comparable institutions in such fiscal year, multiplied by (III) the number of students enrolled at the applicant institution in such fiscal year; or "(iii) 90 percent of the institution's allocation under this part for the preceding fiscal year. "(C) Notwithstanding subparagraphs (A) and (B) of this paragraph, the Secretary shall allocate to each eligible institution which— "(i) was a first-time participant in the program in fiscal year 1986 or any subsequent fiscal year, and "SEC.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/339

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1441

"(ii) received a larger amount under this subsection in the second year of participation, an amount equal to 90 percent of the amount it received under this subsection in its second year of participation. "(D) For any fiscal year after a fiscal year in which an institution receives an allocation under subparagraph (A), (B), or (C), the Secretary shall allocate to such institution an amount equal to the product of— "(i) the amount determined under subparagraph (A), (B), or (C), multiplied by "(ii) the institution's default penalty, as determined under subsection (f), except that if the institution which has a default rate in excess of the applicable maximum default rate under subsection (g), the institution may not receive an allocation under this paragraph. "(3)(A) If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under paragraph (1) of this subsection, then the amount of the allocation to each such institution shall be ratably reduced. "(B) If the amount appropriated for any fiscal year is more than the amount required to be allocated to all institutions under paragraph (1) but less than the amount required to be allocated to all institutions under paragraph (2), then— "(i) the Secretary shall allot the amount required to be allocated to all institutions under paragraph (1), and "(ii) the amount of the allocation to each institution under paragraph (2) shall be ratably reduced. "(C) If additional amounts are appropriated for any such fiscal year, such reduced amounts shall be increased on the same basis as they were reduced (until the amount allocated equals the amount required to be allocated under paragraphs (1) and (2) of this subsection). "(b) ALLOCATION OF EXCESS BASED ON PRO RATA SHARE.—From

one-quarter of the remainder of the simount appropriated pursuant to section 461(b) for any fiscal year (after making the allocations required by subsection (a) of this section), the Secretary shall allocate to each eligible institution an amount which bears the same ratio to such one-quarter as— "(1) the amount the eligible institution receives for such fiscal year under subsection (a), bears to "(2) the amount all such institutions receive under such subsection (a). "(c) ALLOCATION OF EXCESS BASED ON SHARE OF EXCESS ELIGIBLE

AMOUNTS.—(1) From three-quarters of the remainder of the amount appropriated pursuant to section 461(b) after making the allocations required by subsection (a) of this section, the Secretary shall allocate to each eligible institution which has an excess eligible amount an amount which bears the same ratio to such remainder as such excess eligible amount bears to the sum of the excess eligible amounts of all such eligible institutions (having such excess eligible amounts). "(2) For any eligible institution, the excess eligible amount is the amount, if any, by which— "(A)(i) that institution's eligible amount (as determined under paragraph (3)), divided by (ii) the sum of the eligible amounts of all institutions (as so determined), multiplied by (iii) the amount

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/340

 100 STAT. 1442

PUBLIC LAW 99-498—OCT. 17, 1986

appropriated pursuant to section 461(b) for the fiscal year; exceeds "(B) the amount required to be allocated to that institution under subsection (a), except that an eligible institution which has a default rate in excess of the applicable maximum default rate under subsection (g) may not receive an allocation under this paragraph. "(3) For any eligible institution, the eligible amount of that institution is equal to— "(A) the amount of the institution's self-help need, as determined under subsection (d); minus "(B) the institution's anticipated collections; multiplied by "(C) the institution's default penalty, as determined under subsection (f); except that, if the institution has a default rate in excess of the applicable maximum default rate under subsection (g), the eligible amount of that institution is zero. "(d) DETERMINATION OF INSTITUTION'S SELF-HELP NEED.—(1)

The

amount of an institution's self-help need is equal to the sum of the self-help need of the institution's eligible undergraduate students and the self-help need of the institution's eligible graduate and professional students. "(2) To determine the self-help need of an institution's eligible undergraduate students, the Secretary shall— "(A) establish various income categories for dependent and independent undergraduate students; "(B) establish an expected family contribution for each income category of dependent and independent undergraduate students, determined on the basis of the average expected family contribution (computed in accordance with part F of this title) of a representative sample within each income category for the second preceding fiscal year; "(C) compute 25 percent of the average cost of attendance for all undergraduate students; "(D) multiply the number of eligible dependent students in each income category by the lesser of— "(i) 25 percent of the average cost of attendance for all undergraduate students determined under subparagraph (C); or "(ii) the average cost of attendance for all undergraduate •;; students minus the expected family contribution determined under subparagraph (B) for that income category, T except that the amount computed by such subtraction shall not be less than zero; "(E) add the amounts determined under subparagraph (D) for each income category of dependent students; "(F) multiply the number of eligible independent students in each income category by the lesser of— "(i) 25 percent of the average cost of attendance for all undergraduate students determined under subparagraph (C); or tj^ii "(ii) the average cost of attendance for all undergraduate students minus the expected family contribution determined under subparagraph (B) for that income category, except that the amount computed by such subtraction for any income category shall not be less than zero;

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/341

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1443

"(G) add the amounts determined under subparagraph (F) for each income category of independent students; and "(H) add the amounts determined under subparagraphs (E) and (G). "(3) To determine the self-help need of an institution's eligible graduate and professional students, the Secretary, for academic year 1988-1989, shall use the procedures employed for academic year 1986-1987, and, for any subsequent academic years, the Secretary shall— "(A) establish various income categories for graduate and professional students; "(B) establish an expected family contribution for each income category of graduate and professional students, determined on the basis of the average expected family contribution (computed in accordance with part F of this title) of a representative sample within each income category for the second preceding fiscal year; "(C) determine the average cost of attendance for all graduate and professional students; "(D) subtract from the average cost of attendance for all graduate and professional students (determined under subparagraph (O), the expected family contribution (determined under subparagraph (B)) for each income category, except that the amount computed by such subtraction for any income category shall not be less than zero; "(E) multiply the amounts determined under subparagraph (D) by the number of eligible students in each category; "(F) add the amounts determined under subparagraph (E) for each income category. "(3)(A) For purposes of paragraphs (2) and (3), the term 'average cost of attendance' means the average of the attendance costs for undergraduate students and for graduate and professional students, which shall include (i) tuition and fees determined in accordance with subparagraph (B), (ii) standard living expenses determined in accordance with subparagraph (C), and (iii) books and supplies determined in accordance with subparagraph (D). "(B) The average undergraduate and graduate and professional tuition and fees described in subparagraph (A)(i) shall be computed on the basis of information reported by the institution to the Secretary, which shall include (i) total revenue received by the institution from undergraduate and graduate tuition and fees for the second year preceding the year for which it is applying for an allocation, and (ii) the institution's enrollment for such second preceding year. "(C) The standard living expense described in subparagraph (A)(ii) is equal to three-fourths in the Pell Grant family size offset for a single independent student. "(D) The allowance for books and supplies described in subparagraph (A)(iii) is equal to $450. "(e) ANTICIPATED COLLECTIONS; CASH ON HAND.—An institution's

anticipated collections are equal to the amount which was collected during the second year preceding the beginning of the award period, multiplied by 1.21. "(0 DEFAULT PENALTY.—For any institution which has a default rate which equals or exceeds 7.5 percent but does not exceed the maximum default rate applicable to the award year under paragraph (2), the institution's default penalty is a percentage equal to

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/342

 100 STAT. 1444

PUBLIC LAW 99-498—OCT. 17, 1986

the complement of such default rate. For any institution which has a default rate that does not exceed 7.5 percent, the institution's default penalty is equal to one. "(g) APPLICABLE MAXIMUM DEFAULT RATE.—(1) For award years 1988, 1989, and 1990, the applicable maximum default rate is 20 percent. "(2) For award year 1991 and subsequent years, the applicable maximum default rate is 15 percent. "(h) DEFINITION OF DEFAULT RATE.—(1) For the purpose of this section, the default rate is computed by dividing— "(A) the total principal amount of defaulted loans; by "(B) the total principal amount of loans made under this part, less the principal amount of all loans made to borrowers who are eligible for deferment under section 464(c)(2)(A)(i) or are in a grace period preceding repayment. "(2) For the purpose of paragraph (1)(A), the total principal amount of defaulted loans is equal to the total amount borrowed under loans that have reached repayment status and that are in default, minus— "(A) amounts that have been repaid or cancelled on such loans; "(B) loans discharged in bankruptcy; "(C) loans referred or assigned to the Secretary for collection under paragraph (5)(A), (SXBXi), or (6) of section 463(a); and "(D) loans that are in default but on which the borrowers have made satisfactory arrangements to resume payment. "(3) A loan shall be considered to be in default— "(A) 120 days (in the case of a loan repayable monthly), or "(B) 180 days (in the case of a loan repayable quarterly), after the borrower fails to make an installment payment when due or to comply with other terms of the promissory note. "(i) FiuNG DEADLINES.—The Secretary shall, from time to time, set dates before which institutions must file applications for allocations under this part. "(j) REALLOCATION OF EXCESS ALLOCATIONS.—If an institution returns to the Secretary any portion of the sums allocated to such institution under this section for any fiscal year the Secretary shall, in accordance with regulations, reallocate such excess to other institutions. "AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION

20 USC 1087CC.

463. (a) CONTENTS OF AGREEMENTS.—An agreement with any institution of higher education for the payment of Federal capital contributions under this part shall— "(1) provide for the establishment and maintenance of a student loan fund for the purpose of this part; "(2) provide for the deposit in such fund of— "(A) Federal capital contributions from funds appropriated under section 461; 7iOk "(B) a capital contribution by such institution in an amount equal to not less than one-ninth of the amount of the Federal capital contributions described in subparagraph (A); "(C) collections of principal and interest on student loans ,. • made from deposited funds; "SEC.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/343

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1445

"(D) charges collected pursuant to regulations under section 464(c)(l)(H); and "(E) any other earnings of the funds; "(3) provide that such student loan fund shall be used only for— "(A) loans to students, in accordance with the provisions of this part; I "(B) administrative expenses, as provided in subsection (b);
 * *ry

"(C) capital distributions, as provided in section 466; and "(D) costs of litigation, and other collection costs agreed i^j; to by the Secretary in connection with the collection of a loan from the fund (and interest thereon) or a charge assessed pursuant to regulations under section 464(c)(l)(H); "(4) provide that where a note or written agreement evidenc- Reporcs. ing a note has been in default for (A) 120 days, in the case of a loan which is repayable in monthly installments, or (B) 180 f days, in the case of a loan which is repayable in less frequent installments, notice of such default shall be given to the Secretary in a report describing the total number of loans from J such fund which are in such default, and made to the Secretary at least semiannually; "(5) provide that where a note or written agreement evidencing a loan has been in default despite due diligence on the part of the institution in attempting collection thereon— "(A) if the institution has knowingly failed to maintain c, an acceptable collection record with respect to such loan, as g determined by the Secretary in accordance with criteria established by regulation, the Secretary may— "(i) require the institution to assign such note or (P f agreement to the Secretary, without recompense; and / "(ii) apportion any sums collected on such a loan, less I an amount not to exceed 30 percent of any sums collected to cover the Secretary's collection costs, among other institutions in accordance with section 462; or, ji;» "(B) if the institution is not one described in subparagraph (A), the Secretary may— "(i) allow such institution to transfer its interest in fr^jiis: such loan to the Secretary, for collection, and the Secretary may use any collections thereon (less an amount j0 ijr.; not to exceed 30 percent of any such sums collected to cover the Secretary's collection costs) to make allocations to institutions of additional capital contributions ^; in accordance with section 462; or y "(ii) allow such institution to refer such note or £ agreement to the Secretary, without recompense, except that any sums collected on such a loan (less an rr;;^. amount not to exceed 30 percent of any such sums collected to cover the Secretary's collection costs) shall 0.-' be repaid to such institution no later than 180 days after collection by the Secretary and treated as an additional capital contribution; "(6) provide that, if an institution of higher education determines not to service and collect student loans made available from funds under this part, the institution will assign, at the -- beginning of the repayment period, notes or evidence of obliga''• -;? i m tions of student loans made from such funds to the Secretary

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/344

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1446

s and the Secretary shall apportion any sums collected on such notes or obligations (less an amount not to exceed 30 percent of any such sums collected to cover that Secretary's collection costs) among other institutions in accordance with section 462; "(7) provide that, notwithstanding any other provision of law,
 * i^ the Secretary will provide to the institution any information

with respect to the names and addresses of borrowers or other r relevant information which is available to the Secretary, from whatever source such information may be derived; feii "(8) provide assurances that the institution will comply with the provisions of section 463A; "(9) provide that the institution of higher education will make loans first to students with exceptional need; and "(10) include such other reasonable provisions as may be necessary to protect the United States from unreasonable risk of loss and as are agreed to by the Secretary and the institution. "(b) ADMINISTRATIVE EXPENSES.—An institution which has entered into an agreement under subsection (a) shall be entitled, for each fiscal year during which it makes student loans from a student loan fund established under such agreement, to a payment in lieu of reimbursement for its expenses in administering its student loan program under this part during such year. Such payment shall be made in accordance with section 485. "(c) COOPERATIVE AGREEMENTS WITH CREDIT BUREAU ORGANIZA-

TIONS.—(1) For the purpose of promoting responsible repayment of loans made pursuant to this part, the Secretary shall enter into cooperative agreements with credit bureau organizations to provide for the exchange of information concerning student borrowers concerning whom the Secretary has received a referral pursuant to section 467. "(2) Each cooperative agreement made pursuant to paragraph (1) shall be made in accordance with the requirements of section 430A except that such agreement shall provide for the disclosure by the Secretary to such organizations, with respect to any loan for which the Secretary is responsible, of— "(A) the date of disbursement and the amount of any such loan; "(B) information concerning collection of any such loan, including information concerning the status of any defaulted loan; and "(C) the date of cancellation of the note upon completion of repayment by the borrower of any such loan. "(3) Notwithstanding paragraphs (4) and (6) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c (a)(4), (a)(6)), a consumer reporting agency may make a report containing information received from the Secretary regarding the status of a borrower's account on a loan made under this part until— "(A) 7 years from the date on which the Secretary accepted an assignment or referral of a loan, or "(B) 7 years from the date the Secretary first reports the t account to a consumer reporting agency, if that account has not been previously reported by any other holder of the note. STUDENT LOAN INFORMATION BY ELIGIBLE INSTITUTIONS

20 USC 1087CC-1.

463A. (a) DISCLOSURE REQUIRED PRIOR TO DISBURSEMENT.— Each institution of higher education, in order to carry out the "SEC.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/345

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1447

provisions of section 463(a)(8), shall, at or prior to the time such institution makes a loan to a student borrower which is made under this part, provide thorough and adequate loan information on such loan to the student borrower. Any disclosure required by this subsection may be made by an institution of higher education as part of the written application material provided to the borrower, or as part of the promissory note evidencing the loan, or on a separate written form provided to the borrower. The disclosures shall include— "(1) the name of the institution of higher education, and the address to which communications and payments should be sent; "(2) the principal amount of the loan; "(3) the amount of any charges collected by the institution at or prior to the disbursal of the loan and whether such charges are deducted from the proceeds of the loan or paid separately by the borrower; "(4) the stated interest rate on the loan; h "(5) the yearly and cumulative maximum amounts that may be borrowed; "(6) an explanation of when repa3mient of the loan will be required and when the borrower will be obligated to pay interest that accrues on the loan; "(7) a statement as to the minimum and maximum repayment term which the institution may impose, and the minimum monthly payment required by law and a description of any 0 penalty imposed as a consequence of default, such as liability for expenses reasonably incurred in attempts by the Secretary or institutions to collect on a loan; "(8) a statement of the total cumulative balance owed by the student to that institution, the projected level of indebtedness of the student based on a 2- or 4-year college career, and an estimate of the projected monthly repayment given the level of indebtedness over a 2-, 4-, or 5-year college career; "(9) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan; "(10) a statement that the borrower has the right to prepay all or part of the loan, at any time, without penalty, a statement summarizing circumstances in which repayment of the loan or interest that accrues on the loan may be deferred, and a brief notice of the program for repayment of loans, on the basis of military service, pursuant to section 902 of the Department of Defense Authorization Act, 1981 (10 U.S.C. 2141, note); J* "(11) a definition of default and the consequences to the borrower if the borrower defaults, including a statement that the default may be reported to a credit bureau or credit reporting agency; "(12) to the extent practicable, the effect of accepting the loan on the eligibility of the borrower for other forms of student assistance; and "(13) an explanation of any cost the borrower may incur in the making or collection of the loan. "(b) DISCLOSURE REQUIRED PRIOR TO REPAYMENT.—Each institu-

tion of higher education shall enter into an agreement with the Secretary under which the institution will, prior to the start of the repayment period of the student borrower on loans made under this part, disclose to the student borrower the information required under this subsection. Any disclosure required by this subsection may be made by an institution of higher education either in a

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/346

 100 STAT. 1448

Claims.

PUBLIC LAW 99-498—OCT. 17, 1986

promissory note evidencing the loan or loans or in a written statement provided to the borrower. The disclosures shall include— "(1) the name of the institution of higher education, and the "/ address to which communications and payments should be sent; "(2) the scheduled date upon which the repayment period is to begin; "(3) the estimated balance owed by the borrower on the loan ' or loans covered by the disclosure as of the scheduled date on .:. which the repayment period is to begin (including, if applicable, the estimated amount of interest to be capitalized); "(4) the stated interest rate on the loan or loans, or the combined interest rate of loans with different stated interest £ rates; "(5) the nature of any fees which may accrue or be charged to the borrower during the repayment period; "(6) the repayment schedule for all loans covered by the
 * » disclosure including the date the first installment is due, and

the number, amount, and frequency of required payments; "(7) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan; "(8) the projected total of interest charges which the borrower will pay on the loan or loans, assuming that the borrower makes payments exactly in accordance with the repayment schedule; and "(9) a statement that the borrower has the right to prepay all or part of the loan or loans covered by the disclosure at any time without penalty. "(c) CosTS AND EFFECTS OF DISCLOSURES.—Such information shall be available without cost to the borrower. The failure of an eligible institution to provide information as required by this section shall not (1) relieve a borrower of the obligation to repay a loan in accordance with its terms, (2) provide a basis for a claim for civil damages, or (3) be deemed to abrogate the obligation of the Secretary to make payments with respect to such loan. "TERMS OF LOANS

Regulations. 20 USC I087dd.

464. (a) TERMS AND CONDITIONS.—(1) Loans from any student loan fund established pursuant to an agreement under section 463 to any student by any institution shall, subject to such conditions, limitations, and requirements as the Secretary shall prescribe by regulation, be made on such terms and conditions as the institution may determine. "(2) The aggregate of the loans for all years made by institutions of higher education from loan funds established pursuant to agreements under this part may not exceed— "(A) $18,000 in the case of any graduate or professional student (as defined by regulations of the Secretary, and including any loans from such funds made to such person before he became a graduate or professional student); "(B) $9,000 in the case of a student who has successfully • completed 2 years of a program of education leading to a bachelor's degree, but who has not completed the work necessary for such a degree (determined under regulations of the i;. Secretary, and including any loans from such funds made to ", such person before he became such a student); and "(C) $4,500 in the case of any other student. "SEC.

�


text:
Page:U.S. Department of the Interior Annual Report 1880.djvu/63

Rh In but three cases has it been found necessary to use the authority conferred by the twenty-third section of the act of March 3, 1879, for the removal of supervisors and the appointment of their successors, and in neither of these cases were the causes requiring removal such as to reflect upon the personal or official integrity of the supervisor so removed.

Attention is respectfully invited to the remarks of the Superintendent of the Census on the necessity of promptness in the publication of the census reports, and also to his recommendation as to their publication by special contract. It appears highly desirable that this subject should have early consideration in Congress.

The United States Entomological Commission had a prolonged session immediately after the adjournment of Congress, and perfected plans for carrying to completion the work with which it is charged. As during the previous year, the labor was divided so that Professor Riley had charge of that part of the work in which the cotton planter is concerned, while Doctor Packard and Professor Thomas had charge of the work in the West, relating to the Rocky Mountain locust. Professor Thomas made an exploration of those parts of Dakota and British America which embrace some of the most important regions in the permanent breeding- grounds of the locust. Dr. Packard visited Wyoming and Utah, collecting information regarding the locust; and his assistant traveled over two months in different parts of Montana, ascending the Yellowstone River, crossing the country to Bozeman and Helena, and returning through Eastern Idaho. Other agents of the commission collected locust data in Utah. All this region, usually affording the most favorable breeding-grounds for the locust, was remarkably free from them this season, so that the commission believe that there is little likelihood of injury from locusts in the West in 1881.

The second report of the commission is now just ready for distribution, and treats very fully of the locust problem, especially as to the future prospects in the great Northwest, the best means of averting locust injury there, and preventing migrations therefrom into the more fertile States to the east and south; also how the government can best aid in obtaining beneficial results.

Professor Riley, with a corps of able assistants, has conducted the investigation of the cotton-worm, and the results of his work will doubtless tend to lessen the destruction of the cotton-plant.

In addition to the second report, the commission has issued three special bulletins during the year, one by Professor Riley, on the cotton-worm; one by Professor Thomas, on the chinch-bug; and one by Doctor Packard, on the Hessian-fly. They are illustrated summaries of all that is known of these injurious insects, and have been in such demand that Congress ordered extra editions of the two first mentioned, and all three are exhausted, so that further demands cannot be supplied. The third


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/347

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1449

"(3) Regulations of the Secretary under paragraph (1) shall be designed to prevent the impairment of the capital student loan funds to the maximum extent practicable and with a view toward the objective of enabling the student to complete his course of study. "(b) DEMONSTRATION OF NEED AND ELIGIBILITY REQUIRED.—(1) A

loan from a student loan fund assisted under this part may be made only to a student who demonstrates financial need in accordance with part F of this title and who meets the requirements of section 484. "(2) If the institution's Federal capital contribution under section 462 is directly or indirectly based in part on the financial need demonstrated by students attending the institution less than full time, a reasonable proportion of the loans under this part shall be made available to such students. "(c) CONTENTS OF LOAN AGREEMENT.—(1) Any agreement between an institution and a student for a loan from a student loan fund assisted under this part— "(A) shall be evidenced by note or other written instrument which, except as provided in paragraph (2), provides for repayment of the principal amount of the loan, together with interest thereon, in equal installments (or, if the borrower so requests, in graduated periodic installments determined in accordance with such schedules as may be approved by the Secretary) payable quarterly, bimonthly, or monthly, at the option of the institution, over a period beginning nine months after the date on which the student ceases to carry, at an institution of higher education or a comparable institution outside the United States approved for this purpose by the Secretary, at least one-half the normal full-time academic workload, and ending 10 years and 9 months after such date except that such period may begin earlier than 9 months after such date upon the request of the borrower; "(B) shall include provision for acceleration of repayment of the whole, or any part, of such loan, at the option of the borrower; "(C)(i) may provide, at the option of the institution, in accordance with regulations of the Secretary, that during the repayment period of the loan, pa3niients of principal and interest by the borrower with respect to all outstanding loans made to the student from a student loan fund assisted under this part shall be at a rate equal to not less than $30 per month, except that the institution may, subject to such regulations, permit a bor' rower to pay less than $30 per month for a period of not more than one year where necessary to avoid hardship to the borrower, but without extending the 10-year maximum repayment period provided for in subparagraph (A) of this paragraph; and 5 "(ii) may provide that the total payments by a borrower for a monthly or similar payment period with respect to the aggregate of all loans held by the institution may, when the amount "' of a monthly or other similar payment is not a multiple of $5, be rounded to the next highest whole dollar amount that is a multiple of $5; ^ "(D) shall provide that the loan shall bear interest, on the unpaid balance of the loan, at the rate of (i) 3 percent per year, (ii) 4 percent per year in the case of any loan made on or after July 1, 1981, or (iii) 5 percent per year in the case of any loan i made on or after October 1, 1981, except that no interest shall

• - n;.

^

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/348

 100 STAT. 1450

Armed Forces.

22 USC 2501 note. 42 USC 4951

26 USC 501.

PUBLIC LAW 99-498—OCT. 17, 1986

accrue (I) prior to the beginning date of repayment determined under subparagraph (A)(i), or (II) during any period in which repayment is suspended by reason of paragraph (2); "(E) unless the borrower is a minor and the note or other evidence of obligation executed by him would not, under applicable law, create a binding obligation, shall provide that the loan shall be made without security and without endorsement; "(F) shall provide that the liability to repay the loan shall be canceled upon the death of the borrower, or if he becomes permanently and totally disabled as determined in accordance with regulations of the Secretary; "(G) shall provide that no note or evidence of obligation may be assigned by the lender, except upon the transfer of the borrower to another institution participating under this part (or, if not so participating, is eligible to do so and is approved by the Secretary for such purpose), to such institution, and except as necessary to carry out section 463(a)(6); "(H) pursuant to regulations of the Secretary, shall provide for an assessment of a charge with respect to the loan for failure of the borrower to pay all or part of an installment when due, which shall include the expenses reasonably incurred in attempting collection of the loan, to the extent permitted by the Secretary, except that no charge imposed under this subparagraph shall exceed 20 percent of the amount of the monthly payment of the borrower; and (I) shall contain a notice of the system of disclosure of information concerning default on such loan to credit bureau organizations under section 463(c). "(2)(A) No repayment of principal of, or interest on, any loan from a student loan fund assisted under this part shall be required during any period in which the borrower— "(i) is carrying at least one-half the normal full-time academic workload at an institution of higher education or at a comparable institution outside the United States which is approved for this purpose by the Secretary; "(ii) is a member of the Armed Forces of the United States, is an active duty member of the National Oceanic and Atmospheric Administration Corps, or is an officer in the Commissioned Corps of the Public Health Service; "(iii) is in service as a volunteer under the Peace Corps Act; "(iv) is in service as a volunteer under the Domestic VolunteerAct ofl973; "(v) is in service, comparable to the service referred to in clauses (iii) and (iv), as a full-time volunteer for an organization which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1954; "(vi) is serving an internship, the successful completion of which is required in order to receive professional recognition required to begin professional practice or service; "(vii) is temporarily totally disabled (as defined in section 435(g)), as established by sworn affidavit of a qualified physician, or during which the borrower is unable to secure employ-j ment by reason of the care required by a dependent who is so disabled; "(viii) is on parental leave, as defined in section 435(h); or "(ix) is a mother with preschool age children who is just entering or reentering the workforce and who is compensated at

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/349

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1451

a rate not to exceed $1 in excess of the rate prescribed by section 6 of the Fair Labor Standards Act of 1938. 29 USC 206. The period during which repa5mient may be deferred by reason of clause (ii), (iii), (iv), (v), or (vii) shall not exceed 3 years. The period ,; during which repayment may be deferred by reason of clause (vi) shall not exceed 2 years. The period during which repayment may be deferred by reason of clause (viii) shall not exceed 6 months. The period during which the repa3mient may be deferred by reason of clause (ix) shall not exceed 12 months. "(B) Any period during which repayment is deferred under subparagraph (A) shall not be included in computing the 10-year maximum period provided for in subparagraph (A) of paragraph (1). "(C) No repayment of principal of, or interest on, any loan for any period of study, service, or disability described in subparagraph (A) or any combination thereof shall begin until 6 months after the completion of such period of study, service, disability, or combination thereof. "(3)(A) The Secretary is authorized, when good cause is shown, to extend, in accordance with regulations, the 10-year maximum repayment period provided for in subparagraph (A) of paragraph (1) with respect to individual loans. "(B) Pursuant to uniform criteria established by the Secretary, the Disadvantaged repayment period for any student borrower who during the repay- persons. ment period is a low-income individual may be extended for a period not to exceed 10 years and the repa5mient schedule may be adjusted to reflect the income of that individual. "(4) The institution may elect— "(A) to add the amount of any charge imposed under paragraph (1)(H) to the principal amount of the loan as of the first day after the day on which the installment was due and to notify the borrower of the assessment of the charge; or "(B) to make the amount of the charge payable to the institution not later than the due date of the next installment. "(d) AVAILABILITY OF LOAN FUND TO A L L ELIGIBLE STUDENTS.—An

agreement under this part for payment of Federal capital contributions shall include provisions designed to make loans from the student loan fund established pursuant to such agreement reasonably available (to the extent of the available funds in such fund) to all eligible students in such institutions in need thereof. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE "SEC. 465. (a) CANCELLATION OF PERCENTAGE OF DEBT BASED ON YEARS OF QUALIFYING SERVICE.—(1) The percent specified in para-

20 USC I087ee.

graph (3) of this subsection of the total amount of any loan made after June 30, 1972, from a student loan fund assisted under this part shall be canceled for each complete year of service after such date by the borrower under circumstances described in paragraph (2). "(2) Loans shall be canceled under paragraph (1) for service— "(A) as a full-time teacher for service in an academic year in a public or other nonprofit private elementary or secondary school which is in the school district of a local educational agency which is eligible in such year for assistance pursuant to title I of the Elementary and Secondary Education Act of 1965, 20 USC 2701. and which for the purpose of this paragraph and for that year has been determined by the Secretary (pursuant to regulations

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/350

 100 STAT. 1452

PUBLIC LAW 99-498—OCT. 17, 1986

and after consultation with the State educational agency of the '' - ^ ' State in which the school is located) to be a school in which the "'- mentary and Secondary Education Act of 1965 exceeds 30 percent of the total enrollment of that school and such determination shall not be made with respect to more than 50 percent of the total number of schools in the State receiving assistance under such title I; "(B) as a full-time staff member in a preschool program carried on under section 222(a)(1) of the Economic Opportunity 42 USC 2809. Act of 1964 which is operated for a period which is comparable to a full school year in the locality if the salary of such staff V » member is not more than the salary of a comparable employee < of the local educational agency; "(C) as a full-time teacher of handicapped children in a public or other nonprofit elementary or secondary school system; "(D) as a member of the Armed Forces of the United States, for services that qualifies for special pay under section 310 of title 37, United States Code, as an area of hostilities; or 22 USC 2501 "(E) as a volunteer under the Peace Corps Act or a volunteer note. under the Domestic Volunteer Service Act of 1973. '*2 USC 4951 PQJ. ^jig purpose of this paragraph, the term 'handicapped children' "° • , has the meaning set forth in section 602(1) of the Education of the Handicapped Act. "(3)(A) The percent of a loan which shall be canceled under paragraph (1) of this subsection is— "(i) in the case of service described in subparagraph (A) or (C) B- of paragraph (2), at the rate of 15 percent for the first or second year of such service, 20 percent for the third or fourth year of such service, and 30 percent for the fifth year of such service; "(ii) in the case of service described in subparagraph (B) of .; paragraph (2), at the rate of 15 percent for each year of such service; "(iii) in the case of service described in subparagraph (D) of paragraph (2), not to exceed a total of 50 percent of such loan at the rate of 12 ¥2 percent for each year of qualifying service; or "(iv) in the case of service described in subparagraph (E) of . paragraph (2) at the rate of 15 percent for the first or second year of such service and 20 percent for the third or fourth year of such service. "(B) If a portion of a loan is canceled under this subsection for any year, the entire amount of interest on such loan which accrues for iJ ''i. such year shall be canceled. "(C) Nothing in this subsection shall be construed to authorize refunding of any repayment of a loan. "(4) For the purpose of this subsection, the term 'year' where applied to service as a teacher means academic year as defined by the Secretary. "(5) The amount of a loan, and interest on a loan, which is canceled under this section shall not be considered income for 26 USC 1 et seq. purposes of the Internal Revenue Code of 1954. "(b) REIMBURSEMENT FOR CANCELLATION.—The Secretary shall pay to each institution for each fiscal year an amount equal to the aggregate of the amounts of loans from its student loan fund which [<,, are canceled pursuant to this section for such year, minus an amount equal to the aggregate of the amounts of any such loans so canceled which were made from Federal capital contributions to its
 * c enrollment of children counted under section 111(c) of the Ele20 USC 2711.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/351

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1453

student loan fund provided by the Secretary under section 468. None of the funds appropriated pursuant to section 461(b) shall be available for payments pursuant to this subsection. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS

"SEC. 466. (a) IN GENERAL.—After September 30, 1996, and not 20 USC 1087ff. later than March 31, 1997, there shall be a capital distribution of the balance of the student loan fund established under this part by each institution of higher education as follows: "(1) The Secretary shall first be paid an amount which bears the same ratio to the balance in such fund at the close of September 30, 1996, as the total amount of the Federal capital contributions to such fund by the Secretary under this part bears to the sum of such Federal contributions and the institution's capital contributions to such fund. "(2) The remainder of such balance shall be paid to the institution. "(b) DISTRIBUTION OF LATE COLLECTIONS.—After March 31, 1997, each institution with which the Secretary has made an agreement under this part, shall pay to the Secretary the same proportionate share of amounts received by this institution after September 30, rSo.c 1996, in payment of principal and interest on student loans made from the student loan fund established pursuant to such agreement (which amount shall be determined after deduction of any costs of litigation incurred in collection of the principal or interest on loans from the fund and not already reimbursed from the fund or from such payments of principal or interest), as was determined for the Secretary under subsection (a). "(c) DISTRIBUTION OF EXCESS CAPITAL.—Upon a finding by

the

institution or the Secretary prior to October 1, 1997, that the liquid assets of a student loan fund established pursuant to an agreement under this part exceed the amount required for loans or otherwise in the foreseeable future, and upon notice to such institution or to the Secretary, as the case may be, there shall be, subject to such limitations as may be included in regulations of the Secretary or in such agreement, a capital distribution from such fund. Such capital distribution shall be made as follows: "(1) The Secretary shall first be paid an amount which bears the same ratio to the total to be distributed as the Federal capital contributions by the Secretary to the student loan fund prior to such distribution bear to the sum of such Federal capital contributions and the capital contributions to the fund made by the institution. "(2) The remainder of the capital distribution shall be paid to the institution. "COLLECTION OF DEFAULTED LOANS "SEC. 467. (a) AUTHORITY OF SECRETARY TO COLLECT REFERRED, TRANSFERRED, OR ASSIGNED LOANS.—With respect to any loan—

"(1) which was made under this part, and "(2) which is referred, transferred, or assigned to the Secretary by an institution with an agreement under section 463(a), the Secretary is authorized to attempt to collect such loan by any means authorized by law for collecting claims of the United States (including referral to the Attorney General for litigation) and under

Claims. 20 USC 1087gg.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/352

 100 STAT. 1454

PUBLIC LAW 99-498—OCT. 17, 1986

such terms and conditions as the Secretary may prescribe, including reimbursement for expenses reasonably incurred in attempting such collection. "(b)

COLLECTION

OF REFERRED,

TRANSFERRED,

OR

ASSIGNED

LOANS.—The Secretary shall continue to attempt to collect any loan referred, transferred, or assigned under paragraph (5)(A), (5)(B)(i), or (6) of section 463(a) until all appropriate collection efforts, as determined by the Secretary, have been expended. "GENERAL AUTHORITY OF SECRETARY 20 USC 1087hh.

Contracts.

20 USC 1087dd note.

"SEC. 468. In carrying out the provisions of this part, the Secretary is authorized— "(1) to consent to modification, with respect to rate of interest, time of payment of any installment of principal and interest or any portion thereof, or any other provision of any note evidenc, ing a loan which has been made under this part; "(2) to enforce, pay, compromise, waive, or release any right, rrf>i title, claim, lien, or demand, however acquired, including any equity or any right of redemption; "(3) to conduct litigation in accordance with the provisions of section 432(a)(2); and "(4) to enter into a contract or other arrangement with State or nonprofit agencies and, on a competitive basis, with collection agencies for servicing and collection of loans under this part.", (b) EFFECTIVE DATES.—(1) The changes made in sections 464(c)(1)(A), 464(c)(2), and 465(a)(2)(E) of the Act shall apply only to loans made to cover the costs of instruction for periods of enrollment beginning on or after July 1, 1987, to individuals who are new borrowers on that date. (2) Section 463(a)(9) of the Act as amended by this section shall apply only to loans made for periods of enrollment beginning on or after July 1, 1987. (3) For the purpose of this subsection, the term "new borrower" means, with respect to any date, an individual who on that date has no outstanding balance of principal or interest owing on any loan made under part E of title IV of the Act. SEC. 406. ADDITION OF A NEW PART F RELATING TO NEED ANALYSIS FOR STUDENT ASSISTANCE.

(a) AMENDMENT.—Title IV of the Act is further amended by redesignating part F as part G and by inserting after part E the following new part:

'

?

'

'

"PART F—NEED ANALYSIS AMOUNT OF NEED

20 USC I087kk.

"SEC. 471. Except as otherwise provided therein, the amount of need of any student for financial assistance under this title (except subparts 1 and 3 of part A) is equal to the cost of attendance of such student minus the expected family contribution for such student. COST OF ATTENDANCE

20 USC 1087//.

"SEC. 472. For the purpose of this title (except for subpart 1 of part A and subject to section 478), the term 'cost of attendance' means—

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/353

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1455

"(1) tuition and fees normally assessed a student carrying the same academic workload as determined by the institution, and including costs for rental or purchase of any equipment, materials, or supplies required of all students in the same course of study; "(2) an allowance for books, supplies, transportation, and miscellaneous personal expenses for a student attending the institution on at least a half-time basis, as determined by the institution; "(3) an allowance (as determined by the institution) for room and board costs incurred by the student which— "(A) shall be an allowance of not less than $1,500 for a student without dependents residing at home with parents; "(B) for students without dependents residing in institutionally owned or operated housing, shall be a standard allowance determined by the institution based on the amount normally assessed most of its residents for room ' and board; and "(C) for all other students shall be an allowance based on the expenses reasonably incurred by such students for room and board, except that the amount may not be less than $2,500; "(4) for less than half-time students (as determined by the institution) tuition and fees and an allowance for only books, supplies, and transportation (as determined by the institution) and dependent care expenses (in accordance with paragraph (7)); "(5) for a student engaged in a program of study by correspondence, only tuition and fees and, if required, books and supplies, travel, and room and board costs incurred specifically in fulfilling a required period of residential training; "(6) for a student enrolled in an academic program which normally includes a formal program of study abroad, reasonable costs associated with such study (as determined by the institution); "(7) for a student with one or more dependents, an allowance (as determined by the institution) based on the expenses reasonably incurred for dependent care based on the number and age of such dependents; "(8) for a handicapped student, an allowance (as determined by the institution) for those expenses related to his or her handicap, including special services, transportation, equipment, and supplies that are reasonably incurred and not provided for by other assisting agencies; and "(9) for a student receiving all or part of his or her instruction by means of telecommunications technology, no distinction shall be made with respect to the mode of instruction in determining costs, but this paragraph shall not be construed to permit including the cost of rental or purchase of equipment.

Handicapped persons.

FAMILY CONTRIBUTION

"SEC. 473. For the purpose of this title, except subparts 1 and 3 of part A, the term 'family contribution' with respect to any student means the amount which the student and his or her family may be reasonably expected to contribute toward his or her postsecondary education for the academic year for which the determination is made, as determined in accordance with this part.

20 USC 1087mm.

�


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/354

 100 STAT. 1456

PUBLIC LAW 99-498—OCT. 17, 1986 % «

20 USC I087nn.

26 USC 2.

"DATA ELEMENTS USED IN DETERMINING EXPECTED FAMILY CONTRIBUTION

"SEC. 474. The following data elements are considered in determining the expected family contribution: "(1) the available income of (A) the student and his or her spouse, or (B) the student (and spouse) and the student's parents, in the case of a dependent student; "(2) the number of dependents in the family of the student; "(3) the number of dependents in the family of the student who are enrolled in, on at least a half-time basis, a program of postsecondary education and for whom the family may reasonably be expected to contribute to their postsecondary education; "(4) the net assets of (A) the student and his or her spouse, and (B) the student (and spouse) and the student's parents, in the case of a dependent student; "(5) the marital status of the student; "(6) any unusual medical and dental expenses of (A) the student and the student's parents, in the csise of a dependent student, or (B) the student and his or her dependents, in the case of an independent student; "(7) the number of dependent children other than the student enrolled in a private elementary or secondary institution and the unreimbursed tuition paid (A) in the case of a dependent student, by the student's parents for such dependent children, or (B) in the case of an independent student with dependents, by the student or his or her spouse for such dependent children who are so enrolled; and "(8) the additional expenses incurred (A) in the case of a dependent student, when both parents of the student are employed or when the family is headed by a single parent who is employed, or (B) in the case of an independent student, when both the student and his or her spouse are employed or when the employed student qualifies as a surviving spouse or as a head of a household under section 2 of the Internal Revenue Code of 1954. "FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS

20 USC I087oo.

475. (a) COMPUTATION OF EXPECTED FAMILY CONTRIBUTION.— For each dependent student the expected family contribution is equal to the sum of— "(1) the parents' contribution from adjusted available income (determined in accordance with subsection (b)); "(2) the student (and spouse) contribution from available income (determined in accordance with subsection (g)); and "(3) the student (and spouse) income supplemental amount from assets (determined in accordance with subsection (h)). "SEC.

"(b)

..,,.

PARENTS'

CONTRIBUTION

FROM

ADJUSTED

AVAILABLE

INCOME.—The parents' contribution from adjusted available income is equal to the amount determined by— "(1) computing adjusted available income by adding— "(A) the parents' available income (determined in accordance with subsection (c)); and "(B) the parents' income supplemental amount from assets (determined in accordance with subsection (d));

�