 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER III--INSTITUTIONAL AID
 
                       Part F--General Provisions
 
Sec. 1068. Applications for assistance


(a) Applications

                      (1) Applications required

        Any institution which is eligible for assistance under this 
    subchapter shall submit to the Secretary an application for 
    assistance at such time, in such form, and containing such 
    information, as may be necessary to enable the Secretary to evaluate 
    the institution's need for the assistance. Subject to the 
    availability of appropriations to carry out this subchapter, the 
    Secretary may approve an application for assistance under this 
    subchapter only if the Secretary determines that--
            (A) the application meets the requirements of subsection (b) 
        of this section;
            (B) the applicant is eligible for assistance in accordance 
        with the part of this subchapter under which the assistance is 
        sought; and
            (C) the applicant's performance goals are sufficiently 
        rigorous as to meet the purposes of this subchapter and the 
        performance objectives and indicators for this subchapter 
        established by the Secretary pursuant to the Government 
        Performance and Results Act of 1993 and the amendments made by 
        such Act.

                    (2) Preliminary applications

        In carrying out paragraph (1), the Secretary may develop a 
    preliminary application for use by eligible institutions applying 
    under part A of this subchapter prior to the submission of the 
    principal application.

(b) Contents

    An institution, in its application for a grant, shall--
        (1) set forth, or describe how the institution (other than an 
    institution applying under part C, D or E of this subchapter) will 
    develop, a comprehensive development plan to strengthen the 
    institution's academic quality and institutional management, and 
    otherwise provide for institutional self-sufficiency and growth 
    (including measurable objectives for the institution and the 
    Secretary to use in monitoring the effectiveness of activities under 
    this subchapter);
        (2) set forth policies and procedures to ensure that Federal 
    funds made available under this subchapter for any fiscal year will 
    be used to supplement and, to the extent practical, increase the 
    funds that would otherwise be made available for the purposes of 
    section 1057(b) or 1062 of this title, and in no case supplant those 
    funds;
        (3) set forth policies and procedures for evaluating the 
    effectiveness in accomplishing the purpose of the activities for 
    which a grant is sought under this subchapter;
        (4) provide for such fiscal control and fund accounting 
    procedures as may be necessary to ensure proper disbursement of and 
    accounting for funds made available to the applicant under this 
    subchapter;
        (5) provide (A) for making such reports, in such form and 
    containing such information, as the Secretary may require to carry 
    out the functions under this subchapter, including not less than one 
    report annually setting forth the institution's progress toward 
    achieving the objectives for which the funds were awarded, and (B) 
    for keeping such records and affording such access thereto, as the 
    Secretary may find necessary to assure the correctness and 
    verification of such reports;
        (6) provide that the institution will comply with the 
    limitations set forth in section 1068e of this title, except that 
    for purposes of section 1059c of this title, paragraphs (2) and (3) 
    of section 1068e of this title shall not apply;
        (7) describe in a comprehensive manner any proposed project for 
    which funds are sought under the application and include--
            (A) a description of the various components of the proposed 
        project, including the estimated time required to complete each 
        such component;
            (B) in the case of any development project which consists of 
        several components (as described by the applicant pursuant to 
        subparagraph (A)), a statement identifying those components 
        which, if separately funded, would be sound investments of 
        Federal funds and those components which would be sound 
        investments of Federal funds only if funded under this 
        subchapter in conjunction with other parts of the development 
        project (as specified by the applicant);
            (C) an evaluation by the applicant of the priority given any 
        proposed project for which funds are sought in relation to any 
        other projects for which funds are sought by the applicant under 
        this subchapter, and a similar evaluation regarding priorities 
        among the components of any single proposed project (as 
        described by the applicant pursuant to subparagraph (A));
            (D) a detailed budget showing the manner in which funds for 
        any proposed project would be spent by the applicant; and
            (E) a detailed description of any activity which involves 
        the expenditure of more than $25,000, as identified in the 
        budget referred to in subparagraph (E); and

        (8) include such other information as the Secretary may 
    prescribe.

(c) Priority criteria publication required

    The Secretary shall publish in the Federal Register, pursuant to 
chapter 5 of title 5, all policies and procedures required to exercise 
the authority set forth in subsection (a) of this section. No other 
criteria, policies, or procedures shall apply.

(d) Eligibility data

    The Secretary shall use the most recent and relevant data concerning 
the number and percentage of students receiving need-based assistance 
under subchapter IV of this chapter and part C of subchapter I of 
chapter 34 of title 42 in making eligibility determinations under 
section 1058 of this title and shall advance the base-year forward 
following each annual grant cycle.

(Pub. L. 89-329, title III, Sec. 391, formerly Sec. 351, as added Pub. 
L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1302; 
amended Pub. L. 100-50, Sec. 2(a)(13), June 3, 1987, 101 Stat. 336; Pub. 
L. 102-325, title III, Sec. 305(a), July 23, 1992, 106 Stat. 478; 
renumbered Sec. 391 and amended Pub. L. 105-244, title III, 
Secs. 301(a)(2), (c)(11), 308(a)-(c), Oct. 7, 1998, 112 Stat. 1636, 
1637, 1648, 1649.)

                       References in Text

    The Government Performance and Results Act of 1993, referred to in 
subsec. (a)(1)(C), is Pub. L. 103-62, Aug. 3, 1993, 107 Stat. 285, which 
enacted section 306 of Title 5, Government Organization and Employees, 
sections 1115 to 1119, 9703, and 9704 of Title 31, Money and Finance, 
and sections 2801 to 2805 of Title 39, Postal Service, amended section 
1105 of Title 31, and enacted provisions set out as notes under sections 
1101 and 1115 of Title 31. For complete classification of this Act to 
the Code, see Short Title of 1993 Amendment note set out under section 
1101 of Title 31 and Tables.

                          Codification

    Section was formerly classified to section 1066 of this title prior 
to renumbering by Pub. L. 105-244.


                            Prior Provisions

    A prior section 1068, Pub. L. 89-329, title III, Sec. 353, as added 
Pub. L. 99-498, title III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1305, 
which related to application review process, was renumbered section 393 
of Pub. L. 89-329 by Pub. L. 105-244, title III, Sec. 301(a)(2), Oct. 7, 
1998, 112 Stat. 1636, and transferred to section 1068b of this title.
    Another prior section 1068, Pub. L. 89-329, title III, Sec. 343, as 
added Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat. 1398, 
related to application review process and provided for reader panels, 
recommendation of such panels, and notification to institutions, prior 
to the general amendment of this subchapter by Pub. L. 99-498.
    Another prior section 1068, Pub. L. 89-329, title IV, Sec. 408, Nov. 
8, 1965, 79 Stat. 1235; Pub. L. 90-575, title I, Sec. 105(a), Oct. 16, 
1968, 82 Stat. 1018; Pub. L. 91-230, title VIII, Sec. 801, Apr. 13, 
1970, 84 Stat. 190; Pub. L. 92-318, title I, Sec. 131(a)(1)(B), June 23, 
1972, 86 Stat. 247, related to programs for identifying qualified low-
income students and preparing them for post secondary education, grants 
or contracts for planning, developing or carrying out programs, ``Talent 
Search'' program, ``Upward Bound'' program, ``Special Services for 
Disadvantaged Students'' program, nature of programs, waiver of matching 
requirement in the ``Upward Bound'' program and authorization of 
appropriations, prior to the general amendment of part A of subchapter 
IV of this chapter by Pub. L. 92-318, title I, Sec. 131(b)(1), June 23, 
1972, 86 Stat. 247.


                               Amendments

    1998--Subsec. (a). Pub. L. 105-244, Sec. 308(a), amended heading and 
text of subsec. (a) generally. Prior to amendment, text read as follows: 
``Any institution which is eligible for assistance under this subchapter 
shall submit to the Secretary an application for assistance at such 
time, in such form, and containing such information, as may be necessary 
to enable the Secretary to evaluate its need for assistance. Subject to 
the availability of appropriations to carry out this subchapter, the 
Secretary may approve an application for a grant under this subchapter 
if the application meets the requirements of subsection (b) of this 
section and shows that the applicant is eligible for assistance in 
accordance with the part of this subchapter under which the assistance 
is sought.''
    Subsec. (b)(1). Pub. L. 105-244, Sec. 308(b), inserted ``, D or E'' 
after ``part C''.
    Subsec. (b)(6). Pub. L. 105-244, Secs. 301(c)(11), 308(c), 
substituted ``section 1068e'' for ``section 1069c'' and inserted ``, 
except that for purposes of section 1059c of this title, paragraphs (2) 
and (3) of section 1068e of this title shall not apply'' before 
semicolon.
    1992--Subsec. (b)(7)(D) to (F). Pub. L. 102-325 redesignated 
subpars. (E) and (F) as (D) and (E), respectively, and struck out former 
subpar. (D) which read as follows: ``information explaining the manner 
in which the proposed project will assist the applicant to prepare for 
the critical financial problems that all institutions of higher 
education will face during the subsequent decade as a result of 
declining enrollment, and other problems;''.
    1987--Subsec. (b)(6). Pub. L. 100-50 substituted ``section 1069c of 
this title'' for ``section 1069b of this title''.


                    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 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 1057, 1059a of this title.
