                           TITLE 20--EDUCATION
 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part A--Grants to Students in Attendance at Institutions of Higher 
                                Education
 
Sec. 1070. Statement of purpose; program authorization


(a) Purpose

    It is the purpose of this part, to assist in making available the 
benefits of postsecondary education to eligible students (defined in 
accordance with section 1091 of this title) in institutions of higher 
education by--
        (1) providing Federal Pell Grants to all eligible students;
        (2) providing supplemental educational opportunity grants to 
    those students who demonstrate financial need;
        (3) providing for payments to the States to assist them in 
    making financial aid available to such students;
        (4) providing for special programs and projects designed (A) to 
    identify and encourage qualified youths with financial or cultural 
    need with a potential for postsecondary education, (B) to prepare 
    students from low-income families for postsecondary education, and 
    (C) to provide remedial (including remedial language study) and 
    other services to students; and
        (5) providing assistance to institutions of higher education.

(b) Secretary required to carry out purposes

    The Secretary shall, in accordance with subparts 1 through 8 of this 
part, carry out programs to achieve the purposes of this part.

(Pub. L. 89-329, title IV, Sec. 400, formerly Sec. 401, as added Pub. L. 
99-498, title IV, Sec. 401(a), Oct. 17, 1986, 100 Stat. 1308; renumbered 
Sec. 400, Pub. L. 102-325, title IV, Sec. 402(a)(3), July 23, 1992, 106 
Stat. 482; amended Pub. L. 105-244, title IV, Sec. 401(g)(1), Oct. 7, 
1998, 112 Stat. 1652.)


                            Prior Provisions

    A prior section 1070, Pub. L. 89-329, title IV, Sec. 401, as added 
and amended Pub. L. 92-318, title I, Sec. 131(b)(1), title X, 
Sec. 1001(c)(1), (2), June 23, 1972, 86 Stat. 247, 381; Pub. L. 94-482, 
title I, Sec. 125, Oct. 12, 1976, 90 Stat. 2096; Pub. L. 96-374, title 
IV, Sec. 401, title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1401, 
1503, stated purpose of program of grants to students in attendance at 
institutions of higher education, prior to the general revision of this 
part by Pub. L. 99-498.


                               Amendments

    1998--Subsec. (a)(1). Pub. L. 105-244 substituted ``Federal Pell 
Grants'' for ``basic educational opportunity grants''.


                    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.


                   Community Scholarship Mobilization

    Pub. L. 105-244, title VIII, part C, Oct. 7, 1998, 112 Stat. 1810, 
provided that:
``SEC. 811. SHORT TITLE.
    ``This part may be cited as the `Community Scholarship Mobilization 
Act'.
``SEC. 812. FINDINGS.
    ``Congress finds that--
        ``(1) the local community, when properly organized and 
    challenged, is one of the best sources of academic support, 
    motivation toward achievement, and financial resources for aspiring 
    postsecondary students;
        ``(2) local communities, working to complement or augment 
    services currently offered by area schools and colleges, can raise 
    the educational expectations and increase the rate of postsecondary 
    attendance of their youth by forming locally-based organizations 
    that provide both academic support (including guidance, counseling, 
    mentoring, tutoring, encouragement, and recognition) and tangible, 
    locally raised, effectively targeted, publicly recognized, financial 
    assistance;
        ``(3) proven methods of stimulating these community efforts can 
    be promoted through Federal support for the establishment of 
    regional, State, or community program centers to organize and 
    challenge community efforts to develop educational incentives and 
    support for local students; and
        ``(4) using Federal funds to leverage private contributions to 
    help students from low-income families attain educational and career 
    goals is an efficient and effective investment of scarce taxpayer-
    provided resources.
``SEC. 813. DEFINITIONS.
    ``In this part:
        ``(1) Regional, state, or community program center.--The term 
    `regional, State, or community program center' means an organization 
    that--
            ``(A) is a division or member of, responsible to, and 
        overseen by, a national organization; and
            ``(B) is staffed by professionals trained to create, 
        develop, and sustain local entities in towns, cities, and 
        neighborhoods.
        ``(2) Local entity.--The term `local entity' means an 
    organization that--
            ``(A) is a nonprofit organization that is described in 
        section 501(c)(3) of the Internal Revenue Code of 1986 [26 
        U.S.C. 501(c)(3)], and exempt from taxation under section 501(a) 
        of such Code (or shall meet this criteria through affiliation 
        with the national organization);
            ``(B) is formed for the purpose of providing educational 
        scholarships and academic support for residents of the local 
        community served by such organization;
            ``(C) solicits broad-based community support in its academic 
        support and fund-raising activities;
            ``(D) is broadly representative of the local community in 
        the structures of its volunteer-operated organization and has a 
        board of directors that includes leaders from local neighborhood 
        organizations and neighborhood residents, such as school or 
        college personnel, parents, students, community agency 
        representatives, retirees, and representatives of the business 
        community;
            ``(E) awards scholarships without regard to age, sex, 
        marital status, race, creed, color, religion, national origin, 
        or disability; and
            ``(F) gives priority to awarding scholarships for 
        postsecondary education to deserving students from low-income 
        families in the local community.
        ``(3) National organization.--The term `national organization' 
    means an organization that--
            ``(A) has the capacity to create, develop and sustain local 
        entities and affiliated regional, State, or community program 
        centers;
            ``(B) has the capacity to sustain newly created local 
        entities in towns, cities, and neighborhoods through ongoing 
        training support programs;
            ``(C) is described in section 501(c)(3) of the Internal 
        Revenue Code of 1986, and exempt from taxation under section 
        501(a) of such Code;
            ``(D) is a publicly supported organization within the 
        meaning of section 170(b)(1)(A)(iv) of such Code [26 U.S.C. 
        170(b)(1)(A)(iv)];
            ``(E) ensures that each of the organization's local entities 
        meet the criteria described in subparagraphs (C) and (D); and
            ``(F) has a program for or experience in cooperating with 
        secondary and postsecondary institutions in carrying out the 
        organization's scholarship and academic support activities.
        ``(4) High poverty area.--The term `high poverty area' means a 
    community with a higher percentage of children from low-income 
    families than the national average of such percentage and a lower 
    percentage of children pursuing postsecondary education than the 
    national average of such percentage.
        ``(5) Secretary.--The term `Secretary' means the Secretary of 
    Education.
        ``(6) Students from low-income families.--The term `students 
    from low-income families' means students determined, pursuant to 
    part F of title IV of the Higher Education Act of 1965 (20 U.S.C. 
    1087kk et seq.), to be eligible for a Federal Pell Grant under 
    subpart 1 of part A of title IV of such Act (20 U.S.C. 1070a).
``SEC. 814. PURPOSE; ENDOWMENT GRANT AUTHORITY.
    ``(a) Purpose.--It is the purpose of this part to establish and 
support regional, State or community program centers to enable such 
centers to foster the development of local entities in high poverty 
areas that promote higher education goals for students from low-income 
families by--
        ``(1) providing academic support, including guidance, 
    counseling, mentoring, tutoring, and recognition; and
        ``(2) providing scholarship assistance for the cost of 
    postsecondary education.
    ``(b) Endowment Grant Authority.--From the funds appropriated 
pursuant to the authority of section 816, the Secretary shall award an 
endowment grant, on a competitive basis, to a national organization to 
enable such organization to support the establishment or ongoing work of 
regional, State or community program centers that foster the development 
of local entities in high poverty areas to improve secondary school 
graduation rates and postsecondary attendance through the provision of 
academic support services and scholarship assistance for the cost of 
postsecondary education.
``SEC. 815. GRANT AGREEMENT AND REQUIREMENTS.
    ``(a) In General.--The Secretary shall award one or more endowment 
grants described in section 814(b) pursuant to an agreement between the 
Secretary and a national organization. Such agreement shall--
        ``(1) require a national organization to establish an endowment 
    fund in the amount of the grant, the corpus of which shall remain 
    intact and the interest income from which shall be used to support 
    the activities described in paragraphs (2) and (3);
        ``(2) require a national organization to use 70 percent of the 
    interest income from the endowment fund in any fiscal year to 
    support the establishment or ongoing work of regional, State or 
    community program centers to enable such centers to work with local 
    communities to establish local entities in high poverty areas and 
    provide ongoing technical assistance, training workshops, and other 
    activities to help ensure the ongoing success of the local entities;
        ``(3) require a national organization to use 30 percent of the 
    interest income from the endowment fund in any fiscal year to 
    provide scholarships for postsecondary education to students from 
    low-income families, which scholarships shall be matched on a 
    dollar-for-dollar basis from funds raised by the local entities;
        ``(4) require that at least 50 percent of all the interest 
    income from the endowment [fund] be allocated to establish new local 
    entities or support regional, State or community program centers in 
    high poverty areas;
        ``(5) require a national organization to submit, for each fiscal 
    year in which such organization uses the interest from the endowment 
    fund, a report to the Secretary that contains--
            ``(A) a description of the programs and activities supported 
        by the interest on the endowment fund;
            ``(B) the audited financial statement of the national 
        organization for the preceding fiscal year;
            ``(C) a plan for the programs and activities to be supported 
        by the interest on the endowment fund as the Secretary may 
        require;
            ``(D) an evaluation of the programs and activities supported 
        by the interest on the endowment fund as the Secretary may 
        require; and
            ``(E) data indicating the number of students from low-income 
        families who receive scholarships from local entities, and the 
        amounts of such scholarships;
        ``(6) contain such assurances as the Secretary may require with 
    respect to the management and operation of the endowment fund; and
        ``(7) contain an assurance that if the Secretary determines that 
    such organization is not in substantial compliance with the 
    provisions of this part, then the national organization shall pay to 
    the Secretary an amount equal to the corpus of the endowment fund 
    plus any accrued interest on such fund that is available to the 
    national organization on the date of such determination.
    ``(b) Returned Funds.--All funds returned to the Secretary pursuant 
to subsection (a)(7) shall be available to the Secretary to carry out 
any scholarship or grant program assisted under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq. [42 U.S.C. 2751 et seq.]).
``SEC. 816. AUTHORIZATION OF APPROPRIATIONS.
    ``There are authorized to be appropriated to carry out this part 
$10,000,000 for fiscal year 2000.''


                      Community School Partnerships

    Pub. L. 103-382, title V, part B, Oct. 20, 1994, 108 Stat. 4045, 
which provided for grants to establish community centers giving academic 
support and postsecondary scholarships to poor students, was repealed by 
Pub. L. 105-277, div. A, Sec. 101(f) [title VIII, Sec. 301(a)], Oct. 21, 
1998, 112 Stat. 2681-337, 2681-410.


                  Study of Federal Benefit Coordination

    Section 1405 of Pub. L. 102-325 directed Secretary of Education to 
conduct a study to evaluate the coordination of Federal student 
financial assistance programs under title IV of the Higher Education Act 
of 1965 [20 U.S.C. 1070 et seq.; 42 U.S.C. 2751 et seq.] with other 
programs funded in whole or in part with Federal funds, with Secretary 
to prepare and submit to appropriate committees of Congress a report on 
the study not later than 3 years after July 23, 1992, together with such 
recommendations as the Secretary deemed appropriate, prior to repeal by 
Pub. L. 105-332, Sec. 6(b)(2), Oct. 31, 1998, 112 Stat. 3128.


                          Olympic Scholarships

    Pub. L. 102-325, title XV, Sec. 1543, July 23, 1992, 106 Stat. 836, 
as amended by Pub. L. 105-244, title VIII, Sec. 836, Oct. 7, 1998, 112 
Stat. 1820; Pub. L. 106-554, Sec. 1(a)(1) [title III, Sec. 319], Dec. 
21, 2000, 114 Stat. 2763, 2763A-49, provided that:
    ``(a) Scholarships Authorized.--
        ``(1) In general.--The Secretary of Education is authorized to 
    provide financial assistance to the United States Olympic Education 
    Center or the United States Olympic Training Center to enable such 
    centers to provide financial assistance to athletes who are training 
    at such centers and are pursuing postsecondary education at 
    institutions of higher education (as such term is defined in section 
    481(a) of the Higher Education Act of 1965 [20 U.S.C. 1088(a)]).
        ``(2) Award determination.--The amount of financial assistance 
    provided to athletes described in paragraph (1) shall be determined 
    in accordance with such athlete's financial need as determined in 
    accordance with part F of title IV of the Higher Education Act of 
    1965 [20 U.S.C. 1087kk et seq.].
    ``(b) Eligibility.--The Secretary of Education shall ensure that 
financial assistance provided under this part [part E (Sec. 1543) of 
Pub. L. 102-325] is available to both full-time and part-time students 
who are athletes at centers described in subsection (a).
    ``(c) Application.--Each center desiring financial assistance under 
this section shall submit an application to the Secretary of Education 
at such time, in such manner and accompanied by such information as the 
Secretary may reasonably require.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $5,000,000 for fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years to carry out this 
section.
    ``(e) Designation.--Scholarships awarded under this section shall be 
known as `B.J. Stupak Olympic Scholarships'.''


            Persian Gulf Conflict Higher Education Assistance

    Pub. L. 102-26, Secs. 4-6, Apr. 9, 1991, 105 Stat. 125-127, provided 
that:
``SEC. 4. OPERATION DESERT SHIELD/DESERT STORM WAIVER AUTHORITY.
    ``(a) Purpose.--It is the purpose of this section to ensure that--
        ``(1) the men and women serving on active duty in connection 
    with Operation Desert Shield or Operation Desert Storm who are 
    borrowers of Stafford Loans or Perkins Loans are not placed in a 
    worse position financially in relation to those loans because of 
    such service;
        ``(2) the administrative requirements placed on all borrowers of 
    student loans made in accordance with title IV of the Act [20 U.S.C. 
    1070 et seq.; 42 U.S.C. 2751 et seq.] who are engaged in such 
    military service are minimized to the extent possible without 
    impairing the integrity of the student loan programs, in order to 
    ease the burden on such borrowers, and to avoid inadvertent, 
    technical defaults; and
        ``(3) the future eligibility of such an individual for Pell 
    Grants is not reduced by the amount of such assistance awarded for a 
    period of instruction that such individual was unable to complete, 
    or for which the individual did not receive academic credit, because 
    he or she was called up for such service.
    ``(b) Waiver Requirement.--Notwithstanding any other provision of 
law, unless enacted with specific reference to this section, the 
Secretary of Education shall waive or modify any statutory or regulatory 
provision applicable to the student financial aid programs under title 
IV of the Act that the Secretary deems necessary to achieve the purposes 
stated in subsection (a), including--
        ``(1) the length of, and eligibility requirements for, the 
    military deferments authorized under sections 427(a)(2)(C)(ii), 
    428(b)(1)(M)(ii), and 464(c)(2)(A)(ii) of the Act [20 U.S.C. 
    1077(a)(2)(C)(ii), 1078(b)(1)(M)(ii), 1087dd(c)(2)(A)(ii)], in order 
    to enable the borrower of a Stafford Loan or a Perkins Loan who is 
    or was serving on active duty in connection with Operation Desert 
    Shield or Operation Desert Storm to obtain a military deferment, 
    under which interest shall accrue and shall, if otherwise payable by 
    the Secretary, be paid by the Secretary of Education, for the 
    duration of such service;
        ``(2) administrative requirements placed on all borrowers of 
    student loans made in accordance with title IV of the Act who are or 
    were engaged in such military service;
        ``(3) the number of years for which individuals who are engaged 
    in such military service may be eligible for Pell Grants under 
    subpart 1 of part A of title IV of the Act [20 U.S.C. 1070a et 
    seq.];
        ``(4) the point at which the borrower of a Stafford Loan who is 
    or was engaged in such military service is required to resume 
    repayment of principal and interest on such loan after the borrower 
    completes a period of deferment under section 427(a)(2)(C)(ii) or 
    428(b)(1)(M)(ii) of the Act;
        ``(5) the point at which the borrower of a Stafford Loan who is 
    or was engaged in such military service is required to resume 
    repayment of principal and interest on such loan after the borrower 
    completes a single period of deferment under section 427(a)(2)(C)(i) 
    or 428(b)(1)(M)(i) of the Act subsequent to such service; and
        ``(6) the modification of the terms `annual adjusted family 
    income' and `available income,' as used in the determination of need 
    for student financial assistance under title IV of the Act for such 
    individual (and the determination of such need for his or her spouse 
    and dependents, if applicable), to mean the sums received in the 
    first calendar year of the award year for which such determination 
    is made, in order to reflect more accurately the financial condition 
    of such individual and his or her family.
    ``(c) Notice of Waiver.--Notwithstanding section 431 [now 437] of 
the General Education Provisions Act (20 U.S.C. 1232) and section 553 of 
title 5, United States Code, the Secretary shall, by notice in the 
Federal Register, publish the waivers or modifications of statutory and 
regulatory provisions the Secretary deems necessary to achieve the 
purposes of this section. Such notice shall include the terms and 
conditions to be applied in lieu of such statutory and regulatory 
provisions. The Secretary is not required to exercise the waiver or 
modification authority under this section on a case-by-case basis.
    ``(d) Definitions.--For purposes of this Act [probably should be 
``section'']--
        ``(1) Individuals `serving on active duty in connection with 
    Operation Desert Shield or Operation Desert Storm' shall include--
            ``(A) any Reserve of an Armed Force called to active duty 
        under section 672(a) [now 12301(a)], 672(g) [now 12301(g)], 673 
        [now 12302], 673b [now 12304], 674 [now 12306], or 688 of title 
        10, United States Code, for service in connection with Operation 
        Desert Shield or Operation Desert Storm, regardless of the 
        location at which such active duty service is performed; and
            ``(B) for purposes of waivers of administrative requirements 
        under subsection (b)(2) only, any other member of an Armed Force 
        on active duty in connection with Operation Desert Shield or 
        Operation Desert Storm, who has been assigned to a duty station 
        at a location other than the location at which such member is 
        normally assigned.
        ``(2) The term `active duty' has the meaning given such term in 
    section 101(22) of title 10, United States Code, except that such 
    term does not include active duty for training or attendance at a 
    service school.
``SEC. 5. TUITION REFUNDS OR CREDITS.
    ``(a) Sense of Congress.--It is the sense of the Congress that all 
institutions offering postsecondary education should provide a full 
refund to any member or Reserve of an Armed Force on active duty service 
in connection with Operation Desert Shield or Operation Desert Storm for 
that portion of a period of instruction such individual was unable to 
complete, or for which such individual did not receive academic credit, 
because he or she was called up for such service. For purposes of this 
section, a full refund includes a refund of required tuition and fees, 
or a credit in a comparable amount against future tuition and fees.
    ``(b) Encouragement and Report.--The Secretary of Education shall 
encourage institutions to provide such refunds or credits, and shall 
report to the appropriate committees of Congress on the actions taken in 
accordance with this subsection as well as information he receives 
regarding any institutions that are not providing such refunds or 
credits.
``SEC. 6. TERMINATION OF AUTHORITY.
    ``The provisions of sections 4 and 5 shall cease to be effective on 
September 30, 1997.''
    Pub. L. 102-25, title III, part E (Secs. 371-376), Apr. 6, 1991, 105 
Stat. 93, provided that:
``SEC. 371. SHORT TITLE
    ``This part may be cited as the `Persian Gulf Conflict Higher 
Education Assistance Act'.
    ``SEC. 372. [Superseded by section 4 of Pub. L. 102-26, set out 
above.]
    ``SEC. 373. [Superseded by section 5 of Pub. L. 102-26, set out 
above.]
    ``SEC. 374. [Amended section 294d of Title 42, The Public Health and 
Welfare.]
    ``SEC. 375. [Superseded by section 6 of Pub. L. 102-26, set out 
above.]
``SEC. 376. COORDINATION WITH OTHER LAW
    ``If the Higher Education Technical Amendments of 1991 [Pub. L. 102-
26, see Short Title of 1991 Amendment note set out under section 1001 of 
this title] is enacted, the provisions of sections 4, 5, and 6 of that 
Act shall supersede sections 372, 373, and 375.''

                  Section Referred to in Other Sections

    This section is referred to in section 1070a of this title.
