 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
                          Part E--Need Analysis
 
Sec. 1087tt. Discretion of student financial aid administrators


(a) In general

    Nothing in this part shall be interpreted as limiting the authority 
of the financial aid administrator, on the basis of adequate 
documentation, to make adjustments on a case-by-case basis to the cost 
of attendance or the values of the data items required to calculate the 
expected student or parent contribution (or both) to allow for treatment 
of an individual eligible applicant with special circumstances. However, 
this authority shall not be construed to permit aid administrators to 
deviate from the contributions expected in the absence of special 
circumstances. Special circumstances may include tuition expenses at an 
elementary or secondary school, medical or dental expenses not covered 
by insurance, unusually high child care costs, recent unemployment of a 
family member, the number of parents enrolled at least half-time in a 
degree, certificate, or other program leading to a recognized 
educational credential at an institution with a program participation 
agreement under section 1094 of this title, or other changes in a 
family's income, a family's assets, or a student's status. Special 
circumstances shall be conditions that differentiate an individual 
student from a class of students rather than conditions that exist 
across a class of students. Adequate documentation for such adjustments 
shall substantiate such special circumstances of individual students. In 
addition, nothing in this subchapter and part C of subchapter I of 
chapter 34 of title 42 shall be interpreted as limiting the authority of 
the student financial aid administrator in such cases to request and use 
supplementary information about the financial status or personal 
circumstances of eligible applicants in selecting recipients and 
determining the amount of awards under this subchapter and part C of 
subchapter I of chapter 34 of title 42. No student or parent shall be 
charged a fee for collecting, processing, or delivering such 
supplementary information.

(b) Adjustments to assets taken into account

    A student financial aid administrator shall be considered to be 
making a necessary adjustment in accordance with subsection (a) of this 
section if--
        (1) the administrator makes adjustments excluding from family 
    income any proceeds of a sale of farm or business assets of a family 
    if such sale results from a voluntary or involuntary foreclosure, 
    forfeiture, or bankruptcy or an involuntary liquidation; or
        (2) the administrator makes adjustments in the award level of a 
    student with a disability so as to take into consideration the 
    additional costs such student incurs as a result of such student's 
    disability.

(c) Refusal or adjustment of loan certifications

    On a case-by-case basis, an eligible institution may refuse to 
certify a statement that permits a student to receive a loan under part 
B or C of this subchapter, or may certify a loan amount or make a loan 
that is less than the student's determination of need (as determined 
under this part), if the reason for the action is documented and 
provided in written form to the student. No eligible institution shall 
discriminate against any borrower or applicant in obtaining a loan on 
the basis of race, national origin, religion, sex, marital status, age, 
or disability status.

(Pub. L. 89-329, title IV, Sec. 479A, as added Pub. L. 100-50, 
Sec. 14(26), June 3, 1987, 101 Stat. 352; amended Pub. L. 101-239, title 
II, Sec. 2009, Dec. 19, 1989, 103 Stat. 2122; Pub. L. 102-325, title IV, 
Sec. 471(a), July 23, 1992, 106 Stat. 605; Pub. L. 103-208, 
Sec. 2(g)(16), Dec. 20, 1993, 107 Stat. 2473; Pub. L. 105-244, title IV, 
Sec. 478, Oct. 7, 1998, 112 Stat. 1731.)


                            Prior Provisions

    A prior section 1087tt, Pub. L. 89-329, title IV, Sec. 479A, as 
added Pub. L. 99-498, title IV, Sec. 406(a), Oct. 17, 1986, 100 Stat. 
1472, related to discretion of student financial aid administrators 
under this part, prior to repeal by section 14(26) of Pub. L. 100-50.


                               Amendments

    1998--Subsec. (a). Pub. L. 105-244, Sec. 478(1), inserted after 
second sentence ``Special circumstances may include tuition expenses at 
an elementary or secondary school, medical or dental expenses not 
covered by insurance, unusually high child care costs, recent 
unemployment of a family member, the number of parents enrolled at least 
half-time in a degree, certificate, or other program leading to a 
recognized educational credential at an institution with a program 
participation agreement under section 1094 of this title, or other 
changes in a family's income, a family's assets, or a student's 
status.''
    Subsec. (c). Pub. L. 105-244, Sec. 478(2), amended heading and text 
of subsec. (c) generally. Prior to amendment, subsec. (c) related to 
student financial aid administrators making adjustments for special 
circumstances.
    1993--Subsec. (c). Pub. L. 103-208 added subsec. (c).
    1992--Pub. L. 102-325 amended section generally, revising and 
restating provisions of subsecs. (a) and (b) and striking out former 
subsec. (c) which related to asset adjustment as example.
    1989--Subsec. (a). Pub. L. 101-239 amended subsec. (a) generally. 
Prior to amendment, subsec. (a) read as follows: ``Nothing in this 
subchapter and part C of subchapter I of chapter 34 of title 42 shall be 
interpreted as limiting the authority of the student financial aid 
administrator, on the basis of adequate documentation, to make necessary 
adjustments to the cost of attendance and expected student or parent 
contribution (or both) to allow for treatment of individual students 
with special circumstances. In addition, nothing in this subchapter and 
part C of subchapter I of chapter 34 of title 42 shall be interpreted as 
limiting the authority of the student financial aid administrator to use 
supplementary information about the financial status or personal 
circumstance of eligible applicants in selecting recipients and 
determining the amount of awards under subparts 1 and 2 of part A and 
parts B and D of this subchapter and part C of subchapter I of chapter 
34 of title 42.''


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-244 effective Oct. 7, 1998, see section 
480A of Pub. L. 105-244, set out as a note under section 1087kk 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 applicable with respect to 
determinations of need under this part for award years beginning on or 
after July 1, 1993, see section 471(a) of Pub. L. 102-325, set out as a 
note under section 1087kk of this title.


                             Effective Date

    Section 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 an Effective Date of 1987 Amendment note under section 1001 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 1091 of this title.
