 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER III--INSTITUTIONAL AID
 
                   Part A--Strengthening Institutions
 
Sec. 1058. Definitions; eligibility


(a) Educational and general expenditures

    For the purpose of this part, the term ``educational and general 
expenditures'' means the total amount expended by an institution of 
higher education for instruction, research, public service, academic 
support (including library expenditures), student services, 
institutional support, scholarships and fellowships, operation and 
maintenance expenditures for the physical plant, and any mandatory 
transfers which the institution is required to pay by law.

(b) Eligible institution

    For the purpose of this part, the term ``eligible institution'' 
means--
        (1) an institution of higher education--
            (A) which has an enrollment of needy students as required by 
        subsection (c) \1\ of this section;
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    \1\ See References in Text note below.
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            (B) except as provided in section 1068a(b) of this title, 
        the average educational and general expenditures of which are 
        low, per full-time equivalent undergraduate student, in 
        comparison with the average educational and general expenditures 
        per full-time equivalent undergraduate student of institutions 
        that offer similar instruction;
            (C) which is--
                (i) legally authorized to provide, and provides within 
            the State, an educational program for which such institution 
            awards a bachelor's degree;
                (ii) a junior or community college; or
                (iii) the College of the Marshall Islands, the College 
            of Micronesia/Federated States of Micronesia, and Palau 
            Community College;

            (D) which is accredited by a nationally recognized 
        accrediting agency or association determined by the Secretary to 
        be reliable authority as to the quality of training offered or 
        which is, according to such an agency or association, making 
        reasonable progress toward accreditation;
            (E) which meets such other requirements as the Secretary may 
        prescribe; and
            (F) located in a State; and

        (2) any branch of any institution of higher education described 
    under paragraph (1) which by itself satisfies the requirements 
    contained in subparagraphs (A) and (B) of such paragraph.

For purposes of the determination of whether an institution is an 
eligible institution under this paragraph, the factor described under 
paragraph (1)(A) shall be given twice the weight of the factor described 
under paragraph (1)(B).

(c) Endowment fund

    For the purpose of this part, the term ``endowment fund'' means a 
fund that--
        (1) is established by State law, by an institution of higher 
    education, or by a foundation that is exempt from Federal income 
    taxation;
        (2) is maintained for the purpose of generating income for the 
    support of the institution; and
        (3) does not include real estate.

(d) Enrollment of needy students

    For the purpose of this part, the term ``enrollment of needy 
students'' means an enrollment at an institution of higher education or 
a junior or community college which includes--
        (1) at least 50 percent of the degree students so enrolled who 
    are receiving need-based assistance under subchapter IV of this 
    chapter and part C of subchapter I of chapter 34 of title 42 in the 
    second fiscal year preceding the fiscal year for which the 
    determination is being made (other than loans for which an interest 
    subsidy is paid pursuant to section 1078 of this title), or
        (2) a substantial percentage of students receiving Pell Grants 
    in the second fiscal year preceding the fiscal year for which 
    determination is being made, in comparison with the percentage of 
    students receiving Pell Grants at all such institutions in the 
    second fiscal year preceding the fiscal year for which the 
    determination is made, unless the requirement of this subdivision is 
    waived under section 1068a(a) of this title.

(e) Full-time equivalent students

    For the purpose of this part, the term ``full-time equivalent 
students'' means the sum of the number of students enrolled full time at 
an institution, plus the full-time equivalent of the number of students 
enrolled part time (determined on the basis of the quotient of the sum 
of the credit hours of all part-time students divided by 12) at such 
institution.

(f) Junior or community college

    For the purpose of this part, the term ``junior or community 
college'' means an institution of higher education--
        (1) that admits as regular students persons who are beyond the 
    age of compulsory school attendance in the State in which the 
    institution is located and who have the ability to benefit from the 
    training offered by the institution;
        (2) that does not provide an educational program for which it 
    awards a bachelor's degree (or an equivalent degree); and
        (3) that--
            (A) provides an educational program of not less than 2 years 
        that is acceptable for full credit toward such a degree, or
            (B) offers a 2-year program in engineering, mathematics, or 
        the physical or biological sciences, designed to prepare a 
        student to work as a technician or at the semiprofessional level 
        in engineering, scientific, or other technological fields 
        requiring the understanding and application of basic 
        engineering, scientific, or mathematical principles of 
        knowledge.

(g) Historically black college or university

    For the purposes of this section, no historically black college or 
university which is eligible for and receives funds under part B of this 
subchapter is eligible for or may receive funds under this part.

(Pub. L. 89-329, title III, Sec. 312, as added Pub. L. 99-498, title 
III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1292; amended Pub. L. 100-50, 
Sec. 2(a)(2)-(6), June 3, 1987, 101 Stat. 335; Pub. L. 100-369, 
Sec. 10(a), July 18, 1988, 102 Stat. 837; Pub. L. 102-325, title III, 
Sec. 302(a), (b), July 23, 1992, 106 Stat. 472; Pub. L. 103-208, 
Sec. 2(a)(5), Dec. 20, 1993, 107 Stat. 2457; Pub. L. 103-382, title III, 
Sec. 353, Oct. 20, 1994, 108 Stat. 3966; Pub. L. 105-244, title III, 
Secs. 301(c)(2), 303(b), Oct. 7, 1998, 112 Stat. 1636, 1639.)

                       References in Text

    Subsection (c) of this section, referred to in subsec. (b)(1)(A), 
was redesignated subsec. (d) of this section and a new subsec. (c) was 
added by Pub. L. 105-244, title III, Sec. 303(b), Oct. 7, 1998, 112 
Stat. 1639.


                            Prior Provisions

    A prior section 1058, Pub. L. 89-329, title III, Sec. 312, as added 
Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat. 1391, 
defined terms used in this subchapter, prior to the general revision of 
this subchapter by Pub. L. 99-498.


                               Amendments

    1998--Subsec. (b)(1)(B). Pub. L. 105-244, Sec. 301(c)(2)(A), 
substituted ``section 1068a(b)'' for ``section 1067(b)''.
    Subsec. (c). Pub. L. 105-244, Sec. 303(b)(2), added subsec. (c). 
Former subsec. (c) redesignated (d).
    Subsec. (c)(2). Pub. L. 105-244, Sec. 301(c)(2)(B), substituted 
``section 1068a(a)'' for ``section 1067(a)''.
    Subsecs. (d) to (g). Pub. L. 105-244, Sec. 303(b)(1), redesignated 
subsecs. (c) to (f) as (d) to (g), respectively.
    1994--Subsec. (b)(1)(C). Pub. L. 103-382, Sec. 353(1), amended 
subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: 
``(C)(i) which is legally authorized to provide, and provides within the 
State, an educational program for which it awards a bachelor's degree, 
or (ii) which is a junior or community college;''.
    Subsec. (b)(1)(F). Pub. L. 103-382, Sec. 353(2), (3), added subpar. 
(F).
    1993--Subsec. (c)(2). Pub. L. 103-208 inserted ``the'' after ``such 
institutions in''.
    1992--Subsec. (b)(1), (2). Pub. L. 102-325, Sec. 302(a)(1), (2), 
inserted ``and'' at end of subpar. (D), struck out subpar. (E), 
redesignated subpar. (F) as (E) and inserted ``and'' at end, and 
substituted period for semicolon at end of par. (2). Prior to amendment, 
subpar. (E) of par. (1) read as follows: ``except as provided in section 
1067(b) of this title which has, during the 5 academic years preceding 
the academic year for which it seeks assistance under this part--
        ``(i) met the requirement of either subparagraph (C)(i) or 
    (C)(ii), or of both such subparagraphs (simultaneously or 
    consecutively); and
        ``(ii) met the requirement of subparagraph (D); and''.
    Subsec. (b)(3) to (5). Pub. L. 102-325, Sec. 302(a)(3), struck out 
pars. (3) to (5) which read as follows:
    ``(3) any institution of higher education which has an enrollment of 
which at least 20 percent are Mexican American, Puerto Rican, Cuban, or 
other Hispanic students, or combination thereof, and which also 
satisfies the requirements of subparagraphs (A), (B), (C), and (D) of 
paragraph (1);
    ``(4) any institution of higher education which has an enrollment of 
at least 60 percent American Indian, or in the case of Alaska natives, 
an enrollment of at least 5 percent, and which also satisfies the 
requirements of subparagraphs (A), (B), (C), and (D) of paragraph (1); 
and
    ``(5) any institution of higher education which has an enrollment of 
which at least 5 percent are Native Hawaiian, Asian American, American 
Samoan, Micronesian, Guamian (Chamorro), and Northern Marianian, or any 
combination thereof, and which also satisfies the requirements of 
subparagraphs (A), (B), (C), and (D) of paragraph (1).''
    Subsec. (c)(2). Pub. L. 102-325, Sec. 302(b), substituted ``second 
fiscal year preceding the fiscal year for which the determination is 
made, unless the requirement'' for ``second preceding fiscal year, 
unless the requirement''.
    1988--Subsec. (f). Pub. L. 100-369 added subsec. (f).
    1987--Subsec. (b)(1)(C), (D). Pub. L. 100-50, Sec. 2(a)(2)(A), 
inserted ``which'' before ``is'' wherever appearing.
    Subsec. (b)(1)(E). Pub. L. 100-50, Sec. 2(a)(2)(B), inserted 
``which'' before ``has''.
    Subsec. (b)(1)(F). Pub. L. 100-50, Sec. 2(a)(2)(C), inserted 
``which'' before ``meets''.
    Subsec. (b)(3), (5). Pub. L. 100-50, Sec. 2(a)(3), (4), substituted 
``subparagraphs (A), (B), (C), and (D)'' for ``subparagraphs (A) and 
(B)''.
    Subsec. (c)(1). Pub. L. 100-50, Sec. 2(a)(5), inserted ``in the 
second fiscal year preceding the fiscal year for which the determination 
is being made'' after ``chapter 34 of title 42''.
    Subsec. (c)(2). Pub. L. 100-50, Sec. 2(a)(6), substituted ``fiscal 
year preceding the fiscal year for which determination is being made'' 
for ``preceding fiscal year'' and ``second preceding fiscal year'' for 
``such fiscal year''.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as 
otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, 
set out as a note under section 1001 of this title.


                    Effective Date of 1993 Amendment

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


                    Effective Date of 1992 Amendment

    Amendment by Pub. L. 102-325 effective Oct. 1, 1992, see section 2 
of Pub. L. 102-325, set out as a note under section 1001 of this title.


                    Effective Date of 1987 Amendment

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

                  Section Referred to in Other Sections

    This section is referred to in sections 1059c, 1059d, 1063a, 1065, 
1068, 1068a of this title; title 10 section 2194; title 25 sections 
1616h, 1809.
