 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part A--Grants to Students in Attendance at Institutions of Higher 
                                Education
 
     subpart 2--federal early outreach and student services programs
 
  Division 2--Gaining Early Awareness and Readiness for Undergraduate 
                                Programs
 
Sec. 1070a-25. Scholarship component


(a) In general

                             (1) States

        In order to receive a grant under this division, an eligible 
    entity described in section 1070a-21(c)(1) of this title shall 
    establish or maintain a financial assistance program that awards 
    scholarships to students in accordance with the requirements of this 
    section. The Secretary shall encourage the eligible entity to ensure 
    that a scholarship provided pursuant to this section is available to 
    an eligible student for use at any institution of higher education.

                          (2) Partnerships

        An eligible entity described in section 1070a-21(c)(2) of this 
    title may award scholarships to eligible students in accordance with 
    the requirements of this section.

(b) Grant amounts

    The maximum amount of a scholarship that an eligible student shall 
be eligible to receive under this section shall be established by the 
eligible entity. The minimum amount of the scholarship for each fiscal 
year shall not be less than the lesser of--
        (1) 75 percent of the average cost of attendance for an in-State 
    student, in a 4-year program of instruction, at public institutions 
    of higher education in such State, as determined in accordance with 
    regulations prescribed by the Secretary; or
        (2) the maximum Federal Pell Grant funded under section 1070a of 
    this title for such fiscal year.

(c) Relation to other assistance

    Scholarships provided under this section shall not be considered for 
the purpose of awarding Federal grant assistance under this subchapter 
and part C of subchapter I of chapter 34 of title 42, except that in no 
case shall the total amount of student financial assistance awarded to a 
student under this subchapter and part C of subchapter I of chapter 34 
of title 42 exceed such student's total cost of attendance.

(d) Eligible students

    A student eligible for assistance under this section is a student 
who--
        (1) is less than 22 years old at time of first scholarship award 
    under this section;
        (2) receives a secondary school diploma or its recognized 
    equivalent on or after January 1, 1993;
        (3) is enrolled or accepted for enrollment in a program of 
    undergraduate instruction at an institution of higher education that 
    is located within the State's boundaries, except that, at the 
    State's option, an eligible entity may offer scholarship program 
    portability for recipients who attend institutions of higher 
    education outside such State; and
        (4) who participated in the early intervention component 
    required under section 1070a-24 of this title.

(e) Priority

    The Secretary shall ensure that each eligible entity places a 
priority on awarding scholarships to students who will receive a Federal 
Pell Grant for the academic year for which the scholarship is awarded 
under this section.

(f) Special rule

    An eligible entity may consider students who have successfully 
participated in programs funded under division 1 of this subpart to have 
met the requirements of subsection (d)(4) of this section.

(Pub. L. 89-329, title IV, Sec. 404E, as added Pub. L. 105-244, title 
IV, Sec. 403, Oct. 7, 1998, 112 Stat. 1661.)


                            Prior Provisions

    A prior section 1070a-25, Pub. L. 89-329, title IV, Sec. 404E, as 
added Pub. L. 102-325, title IV, Sec. 402(a)(4), July 23, 1992, 106 
Stat. 495; amended Pub. L. 103-208, Sec. 2(b)(20), Dec. 20, 1993, 107 
Stat. 2459, related to distribution of funds, prior to the general 
amendment of this division by Pub. L. 105-244.

                  Section Referred to in Other Sections

    This section is referred to in sections 1070a-22, 1070a-23 of this 
title.
