 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part F--General Provisions Relating to Student Assistance Programs
 
Sec. 1091. Student eligibility


(a) In general

    In order to receive any grant, loan, or work assistance under this 
subchapter and part C of subchapter I of chapter 34 of title 42, a 
student must--
        (1) be enrolled or accepted for enrollment in a degree, 
    certificate, or other program (including a program of study abroad 
    approved for credit by the eligible institution at which such 
    student is enrolled) leading to a recognized educational credential 
    at an institution of higher education that is an eligible 
    institution in accordance with the provisions of section 1094 of 
    this title, except as provided in subsections (b)(3) and (b)(4) of 
    this section, and not be enrolled in an elementary or secondary 
    school;
        (2) if the student is presently enrolled at an institution, be 
    maintaining satisfactory progress in the course of study the student 
    is pursuing in accordance with the provisions of subsection (c) of 
    this section;
        (3) not owe a refund on grants previously received at any 
    institution under this subchapter and part C of subchapter I of 
    chapter 34 of title 42, or be in default on any loan from a student 
    loan fund at any institution provided for in part D of this 
    subchapter, or a loan made, insured, or guaranteed by the Secretary 
    under this subchapter and part C of subchapter I of chapter 34 of 
    title 42 for attendance at any institution;
        (4) file with the Secretary, as part of the original financial 
    aid application process, a certification,,\1\ which need not be 
    notarized, but which shall include--
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    \1\ So in original.
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            (A) a statement of educational purpose stating that the 
        money attributable to such grant, loan, or loan guarantee will 
        be used solely for expenses related to attendance or continued 
        attendance at such institution; and
            (B) such student's social security number, except that the 
        provisions of this subparagraph shall not apply to a student 
        from the Republic of the Marshall Islands, the Federated States 
        of Micronesia, or the Republic of Palau; \2\
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    \2\ So in original. Probably should be followed by ``and''.

        (5) be a citizen or national of the United States, a permanent 
    resident of the United States, able to provide evidence from the 
    Immigration and Naturalization Service that he or she is in the 
    United States for other than a temporary purpose with the intention 
    of becoming a citizen or permanent resident,\3\ a citizen of any one 
    of the Freely Associated States.
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    \3\ So in original. Probably should be followed by ``or''.
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(b) Eligibility for student loans

    (1) In order to be eligible to receive any loan under this 
subchapter and part C of subchapter I of chapter 34 of title 42 (other 
than a loan under section 1078-2 or 1078-3 of this title) for any period 
of enrollment, a student who is not a graduate or professional student 
(as defined in regulations of the Secretary), and who is enrolled in a 
program at an institution which has a participation agreement with the 
Secretary to make awards under subpart 1 of part A of this subchapter, 
shall--
        (A)(i) have received a determination of eligibility or 
    ineligibility for a Pell Grant under such subpart 1 for such period 
    of enrollment; and (ii) if determined to be eligible, have filed an 
    application for a Pell Grant for such enrollment period; or
        (B) have (A) filed an application with the Pell Grant processor 
    for such institution for such enrollment period, and (B) received 
    from the financial aid administrator of the institution a 
    preliminary determination of the student's eligibility or 
    ineligibility for a grant under such subpart 1.

    (2) In order to be eligible to receive any loan under section 1078-1 
\4\ of this title for any period of enrollment, a student shall--
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    \4\ See References in Text note below.
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        (A) have received a determination of need for a loan under 
    section 1078(a)(2)(B) of this title;
        (B) if determined to have need for a loan under section 1078 of 
    this title, have applied for such a loan; and
        (C) has applied for a loan under section 1078-8 of this title, 
    if such student is eligible to apply for such a loan.

    (3) A student who--
        (A) is carrying at least one-half the normal full-time work load 
    for the course of study that the student is pursuing, as determined 
    by an eligible institution, and
        (B) is enrolled in a course of study necessary for enrollment in 
    a program leading to a degree or certificate,

shall be, notwithstanding paragraph (1) of subsection (a) of this 
section, eligible to apply for loans under part B or C of this 
subchapter. The eligibility described in this paragraph shall be 
restricted to one 12-month period.
    (4) A student who--
        (A) is carrying at least one-half the normal full-time work load 
    for the course of study the student is pursuing, as determined by 
    the institution, and
        (B) is enrolled or accepted for enrollment in a program at an 
    eligible institution necessary for a professional credential or 
    certification from a State that is required for employment as a 
    teacher in an elementary or secondary school in that State,

shall be, notwithstanding paragraph (1) of subsection (a) of this 
section, eligible to apply for loans under part B, C, or D of this 
subchapter or work-study assistance under part C of subchapter I of 
chapter 34 of title 42.
    (5) Notwithstanding any other provision of this subsection, no 
incarcerated student is eligible to receive a loan under this subchapter 
and part C of subchapter I of chapter 34 of title 42.

(c) Satisfactory progress

    (1) For the purpose of subsection (a)(2) of this section, a student 
is maintaining satisfactory progress if--
        (A) the institution at which the student is in attendance, 
    reviews the progress of the student at the end of each academic 
    year, or its equivalent, as determined by the institution, and
        (B) the student has a cumulative C average, or its equivalent or 
    academic standing consistent with the requirements for graduation, 
    as determined by the institution, at the end of the second such 
    academic year.

    (2) Whenever a student fails to meet the eligibility requirements of 
subsection (a)(2) of this section as a result of the application of this 
subsection and subsequent to that failure the student has academic 
standing consistent with the requirements for graduation, as determined 
by the institution, for any grading period, the student may, subject to 
this subsection, again be eligible under subsection (a)(2) of this 
section for a grant, loan, or work assistance under this subchapter and 
part C of subchapter I of chapter 34 of title 42.
    (3) Any institution of higher education at which the student is in 
attendance may waive the provisions of paragraph (1) or paragraph (2) of 
this subsection for undue hardship based on--
        (A) the death of a relative of the student,
        (B) the personal injury or illness of the student, or
        (C) special circumstances as determined by the institution.

(d) Students who are not high school graduates

    In order for a student who does not have a certificate of graduation 
from a school providing secondary education, or the recognized 
equivalent of such certificate, to be eligible for any assistance under 
subparts 1, 3, and 4 of part A and parts B, C, and D of this subchapter 
and part C of subchapter I of chapter 34 of title 42, the student shall 
meet one of the following standards:
        (1) The student shall take an independently administered 
    examination and shall achieve a score, specified by the Secretary, 
    demonstrating that such student can benefit from the education or 
    training being offered. Such examination shall be approved by the 
    Secretary on the basis of compliance with such standards for 
    development, administration, and scoring as the Secretary may 
    prescribe in regulations.
        (2) The student shall be determined as having the ability to 
    benefit from the education or training in accordance with such 
    process as the State shall prescribe. Any such process described or 
    approved by a State for the purposes of this section shall be 
    effective 6 months after the date of submission to the Secretary 
    unless the Secretary disapproves such process. In determining 
    whether to approve or disapprove such process, the Secretary shall 
    take into account the effectiveness of such process in enabling 
    students without high school diplomas or the equivalent thereof to 
    benefit from the instruction offered by institutions utilizing such 
    process, and shall also take into account the cultural diversity, 
    economic circumstances, and educational preparation of the 
    populations served by the institutions.
        (3) The student has completed a secondary school education in a 
    home school setting that is treated as a home school or private 
    school under State law.

(e) Certification for GSL eligibility

    Each eligible institution may certify student eligibility for a loan 
by an eligible lender under part B of this subchapter prior to 
completing the review for accuracy of the information submitted by the 
applicant required by regulations issued under this subchapter and part 
C of subchapter I of chapter 34 of title 42, if--
        (1) checks for the loans are mailed to the eligible institution 
    prior to disbursements;
        (2) the disbursement is not made until the review is complete; 
    and
        (3) the eligible institution has no evidence or documentation on 
    which the institution may base a determination that the information 
    submitted by the applicant is incorrect.

(f) Loss of eligibility for violation of loan limits

    (1) No student shall be eligible to receive any grant, loan, or work 
assistance under this subchapter and part C of subchapter I of chapter 
34 of title 42 if the eligible institution determines that the student 
fraudulently borrowed in violation of the annual loan limits under part 
B, part C, or part D of this subchapter in the same academic year, or if 
the student fraudulently borrowed in excess of the aggregate maximum 
loan limits under such part B, part C, or part D.
    (2) If the institution determines that the student inadvertently 
borrowed amounts in excess of such annual or aggregate maximum loan 
limits, such institution shall allow the student to repay any amount 
borrowed in excess of such limits prior to certifying the student's 
eligibility for further assistance under this subchapter and part C of 
subchapter I of chapter 34 of title 42.

(g) Verification of immigration status

                           (1) In general

        The Secretary shall implement a system under which the 
    statements and supporting documentation, if required, of an 
    individual declaring that such individual is in compliance with the 
    requirements of subsection (a)(5) of this section shall be verified 
    prior to the individual's receipt of a grant, loan, or work 
    assistance under this subchapter and part C of subchapter I of 
    chapter 34 of title 42.

                          (2) Special rule

        The documents collected and maintained by an eligible 
    institution in the admission of a student to the institution may be 
    used by the student in lieu of the documents used to establish both 
    employment authorization and identity under section 1324a(b)(1)(B) 
    of title 8 to verify eligibility to participate in work-study 
    programs under part C of subchapter I of chapter 34 of title 42.

                     (3) Verification mechanisms

        The Secretary is authorized to verify such statements and 
    supporting documentation through a data match, using an automated or 
    other system, with other Federal agencies that may be in possession 
    of information relevant to such statements and supporting 
    documentation.

                             (4) Review

        In the case of such an individual who is not a citizen or 
    national of the United States, if the statement described in 
    paragraph (1) is submitted but the documentation required under 
    paragraph (2) is not presented or if the documentation required 
    under paragraph (2)(A) is presented but such documentation is not 
    verified under paragraph (3)--
            (A) the institution--
                (i) shall provide a reasonable opportunity to submit to 
            the institution evidence indicating a satisfactory 
            immigration status, and
                (ii) may not delay, deny, reduce, or terminate the 
            individual's eligibility for the grant, loan, or work 
            assistance on the basis of the individual's immigration 
            status until such a reasonable opportunity has been 
            provided; and

            (B) if there are submitted documents which the institution 
        determines constitute reasonable evidence indicating such 
        status--
                (i) the institution shall transmit to the Immigration 
            and Naturalization Service either photostatic or other 
            similar copies of such documents, or information from such 
            documents, as specified by the Immigration and 
            Naturalization Service, for official verification,
                (ii) pending such verification, the institution may not 
            delay, deny, reduce, or terminate the individual's 
            eligibility for the grant, loan, or work assistance on the 
            basis of the individual's immigration status, and
                (iii) the institution shall not be liable for the 
            consequences of any action, delay, or failure of the Service 
            to conduct such verification.

(h) Limitations of enforcement actions against institutions

    The Secretary shall not take any compliance, disallowance, penalty, 
or other regulatory action against an institution of higher education 
with respect to any error in the institution's determination to make a 
student eligible for a grant, loan, or work assistance based on 
citizenship or immigration status--
        (1) if the institution has provided such eligibility based on a 
    verification of satisfactory immigration status by the Immigration 
    and Naturalization Service,
        (2) because the institution, under subsection (h)(4)(A)(i) \5\ 
    of this section, was required to provide a reasonable opportunity to 
    submit documentation, or
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    \5\ See References in Text note below.
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        (3) because the institution, under subsection (h)(4)(B)(i) \5\ 
    of this section, was required to wait for the response of the 
    Immigration and Naturalization Service to the institution's request 
    for official verification of the immigration status of the student.

(i) Validity of loan guarantees for loan payments made before 
        immigration status verification completed

    Notwithstanding subsection (h) \5\ of this section, if--
        (1) a guaranty is made under this subchapter and part C of 
    subchapter I of chapter 34 of title 42 for a loan made with respect 
    to an individual,
        (2) at the time the guaranty is entered into, the provisions of 
    subsection (h) \5\ of this section had been complied with,
        (3) amounts are paid under the loan subject to such guaranty, 
    and
        (4) there is a subsequent determination that, because of an 
    unsatisfactory immigration status, the individual is not eligible 
    for the loan,

the official of the institution making the determination shall notify 
and instruct the entity making the loan to cease further payments under 
the loan, but such guaranty shall not be voided or otherwise nullified 
with respect to such payments made before the date the entity receives 
the notice.

(j) Assistance under subparts 1 and 3 of part A, and part C

    Notwithstanding any other provision of law, a student shall be 
eligible until September 30, 2004, for assistance under subparts 1 and 3 
of part A of this subchapter, and part C of subchapter I of chapter 34 
of title 42, if the student is otherwise qualified and--
        (1) is a citizen of any one of the Freely Associated States and 
    attends an institution of higher education in a State or a public or 
    nonprofit private institution of higher education in the Freely 
    Associated States; or
        (2) meets the requirements of subsection (a)(5) of this section 
    and attends a public or nonprofit private institution of higher 
    education in any one of the Freely Associated States.

(k) Special rule for correspondence courses

    A student shall not be eligible to receive grant, loan, or work 
assistance under this subchapter and part C of subchapter I of chapter 
34 of title 42 for a correspondence course unless such course is part of 
a program leading to an associate, bachelor or graduate degree.

(l) Courses offered through telecommunications

               (1) Relation to correspondence courses

        (A) In general

            A student enrolled in a course of instruction at an 
        institution of higher education that is offered in whole or in 
        part through telecommunications and leads to a recognized 
        certificate for a program of study of 1 year or longer, or a 
        recognized associate, baccalaureate, or graduate degree, 
        conferred by such institution, shall not be considered to be 
        enrolled in correspondence courses unless the total amount of 
        telecommunications and correspondence courses at such 
        institution equals or exceeds 50 percent of the total amount of 
        all courses at the institution.

        (B) Requirement

            An institution of higher education referred to in 
        subparagraph (A) is an institution of higher education--
                (i) that is not an institute or school described in 
            section 2471(4)(C) \6\ of this title; and
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    \6\ See References in Text note below.
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                (ii) for which at least 50 percent of the programs of 
            study offered by the institution lead to the award of a 
            recognized associate, baccalaureate, or graduate degree.

           (2) Restriction or reductions of financial aid

        A student's eligibility to receive grants, loans, or work 
    assistance under this subchapter and part C of subchapter I of 
    chapter 34 of title 42 shall be reduced if a financial aid officer 
    determines under the discretionary authority provided in section 
    1087tt of this title that telecommunications instruction results in 
    a substantially reduced cost of attendance to such student.

                          (3) Special rule

        For award years prior to July 23, 1992, the Secretary shall not 
    take any compliance, disallowance, penalty, or other action against 
    a student or an eligible institution when such action arises out of 
    such institution's prior award of student assistance under this 
    subchapter and part C of subchapter I of chapter 34 of title 42 if 
    the institution demonstrates to the satisfaction of the Secretary 
    that its course of instruction would have been in conformance with 
    the requirements of this subsection.

                 (4) ``Telecommunications'' defined

        For the purposes of this subsection, the term 
    ``telecommunications'' means the use of television, audio, or 
    computer transmission, including open broadcast, closed circuit, 
    cable, microwave, or satellite, audio conferencing, computer 
    conferencing, or video cassettes or discs, except that such term 
    does not include a course that is delivered using video cassette or 
    disc recordings at such institution and that is not delivered in 
    person to other students of that institution.

(m) Students with a first baccalaureate or professional degree

    A student shall not be ineligible for assistance under parts B, C, 
and D of this subchapter and part C of subchapter I of chapter 34 of 
title 42 because such student has previously received a baccalaureate or 
professional degree.

(n) Data base matching

    To enforce the Selective Service registration provisions of section 
1113 of Public Law 97-252, the Secretary shall conduct data base matches 
with the Selective Service, using common demographic data elements. 
Appropriate confirmation, through an application output document or 
through other means, of any person's registration shall fulfill the 
requirement to file a separate statement of compliance. In the absence 
of a confirmation from such data matches, an institution may also use 
data or documents that support either the student's registration, or the 
absence of a registration requirement for the student, to fulfill the 
requirement to file a separate statement of compliance. The mechanism 
for reporting the resolution of nonconfirmed matches shall be prescribed 
by the Secretary in regulations.

(o) Study abroad

    Nothing in this chapter shall be construed to limit or otherwise 
prohibit access to study abroad programs approved by the home 
institution at which a student is enrolled. An otherwise eligible 
student who is engaged in a program of study abroad approved for 
academic credit by the home institution at which the student is enrolled 
shall be eligible to receive grant, loan, or work assistance under this 
subchapter and part C of subchapter I of chapter 34 of title 42, without 
regard to whether such study abroad program is required as part of the 
student's degree program.

(p) Verification of social security number

    The Secretary of Education, in cooperation with the Commissioner of 
the Social Security Administration, shall verify any social security 
number provided by a student to an eligible institution under subsection 
(a)(4) of this section and shall enforce the following conditions:
        (1) Except as provided in paragraphs (2) and (3), an institution 
    shall not deny, reduce, delay, or terminate a student's eligibility 
    for assistance under this part because social security number 
    verification is pending.
        (2) If there is a determination by the Secretary that the social 
    security number provided to an eligible institution by a student is 
    incorrect, the institution shall deny or terminate the student's 
    eligibility for any grant, loan, or work assistance under this 
    subchapter and part C of subchapter I of chapter 34 of title 42 
    until such time as the student provides documented evidence of a 
    social security number that is determined by the institution to be 
    correct.
        (3) If there is a determination by the Secretary that the social 
    security number provided to an eligible institution by a student is 
    incorrect, and a correct social security number cannot be provided 
    by such student, and a loan has been guaranteed for such student 
    under part B of this subchapter, the institution shall notify and 
    instruct the lender and guaranty agency making and guaranteeing the 
    loan, respectively, to cease further disbursements of the loan, but 
    such guaranty shall not be voided or otherwise nullified with 
    respect to such disbursements made before the date that the lender 
    and the guaranty agency receives such notice.
        (4) Nothing in this subsection shall permit the Secretary to 
    take any compliance, disallowance, penalty, or other regulatory 
    action against--
            (A) any institution of higher education with respect to any 
        error in a social security number, unless such error was a 
        result of fraud on the part of the institution; or
            (B) any student with respect to any error in a social 
        security number, unless such error was a result of fraud on the 
        part of the student.

(q) Verification of income data

                      (1) Confirmation with IRS

        The Secretary of Education, in cooperation with the Secretary of 
    the Treasury, is authorized to confirm with the Internal Revenue 
    Service the adjusted gross income, Federal income taxes paid, filing 
    status, and exemptions reported by applicants (including parents) 
    under this subchapter and part C of subchapter I of chapter 34 of 
    title 42 on their Federal income tax returns for the purpose of 
    verifying the information reported by applicants on student 
    financial aid applications.

                          (2) Notification

        The Secretary shall establish procedures under which an 
    applicant is notified that the Internal Revenue Service will 
    disclose to the Secretary tax return information as authorized under 
    section 6103(l)(13) of title 26.

(r) Suspension of eligibility for drug-related offenses

                           (1) In general

        A student who has been convicted of any offense under any 
    Federal or State law involving the possession or sale of a 
    controlled substance shall not be eligible to receive any grant, 
    loan, or work assistance under this subchapter and part C of 
    subchapter I of chapter 34 of title 42 during the period beginning 
    on the date of such conviction and ending after the interval 
    specified in the following table:




If convicted of an offense involving:

  The possession of a controlled            Ineligibility period is:
   substance:
      First offense.......................      1 year
      Second offense......................      2 years
      Third offense.......................      Indefinite.

  The sale of a controlled substance:       Ineligibility period is:
      First offense.......................      2 years
      Second offense......................      Indefinite.


                         (2) Rehabilitation

        A student whose eligibility has been suspended under paragraph 
    (1) may resume eligibility before the end of the ineligibility 
    period determined under such paragraph if--
            (A) the student satisfactorily completes a drug 
        rehabilitation program that--
                (i) complies with such criteria as the Secretary shall 
            prescribe in regulations for purposes of this paragraph; and
                (ii) includes two unannounced drug tests; or

            (B) the conviction is reversed, set aside, or otherwise 
        rendered nugatory.

                           (3) Definitions

        In this subsection, the term ``controlled substance'' has the 
    meaning given the term in section 802(6) of title 21.

(Pub. L. 89-329, title IV, Sec. 484, as added Pub. L. 99-498, title IV, 
Sec. 407(a), Oct. 17, 1986, 100 Stat. 1479; amended Pub. L. 99-603, 
title I, Sec. 121(a)(3), Nov. 6, 1986, 100 Stat. 3388; Pub. L. 100-50, 
Sec. 15(7)-(9), June 3, 1987, 101 Stat. 356, 357; Pub. L. 100-369, 
Secs. 1, 2, 6, July 18, 1988, 102 Stat. 835, 836; Pub. L. 100-525, 
Sec. 2(g), Oct. 24, 1988, 102 Stat. 2611; Pub. L. 101-508, title III, 
Sec. 3005(a), Nov. 5, 1990, 104 Stat. 1388-27; Pub. L. 102-26, 
Sec. 2(b), (c)(2), (d)(2)(A), Apr. 9, 1991, 105 Stat. 123, 124; Pub. L. 
102-73, title VIII, Sec. 801(a), July 25, 1991, 105 Stat. 359; Pub. L. 
102-325, title IV, Sec. 484(a), (b)(1), (c)-(h), July 23, 1992, 106 
Stat. 615-619; Pub. L. 103-208, Sec. 2(h)(13)-(25), Dec. 20, 1993, 107 
Stat. 2476, 2477; Pub. L. 103-382, title III, Sec. 360A, Oct. 20, 1994, 
108 Stat. 3969; Pub. L. 104-208, div. C, title V, Sec. 507(b), Sept. 30, 
1996, 110 Stat. 3009-673; Pub. L. 105-244, title IV, Sec. 483(a)-(f)(1), 
Oct. 7, 1998, 112 Stat. 1735, 1736.)

                       References in Text

    Section 1078-1 of this title, referred to in subsec. (b)(2), was 
repealed by Pub. L. 103-66, title IV, Sec. 4047(b)-(d), Aug. 10, 1993, 
107 Stat. 364, eff. July 1, 1994, except with respect to loans provided 
under that section as it existed prior to Aug. 10, 1993. Subsequently, a 
new section 1078-1, relating to voluntary flexible agreements with 
guaranty agencies, was enacted by Pub. L. 105-244, title IV, Sec. 418, 
Oct. 7, 1998, 112 Stat. 1691.
    Subsection (h) of this section, referred to in subsecs. (h)(2), (3) 
and (i), was redesignated subsec. (g) of this section by Pub. L. 103-
208, Sec. 2(h)(25), Dec. 20, 1993, 107 Stat. 2477.
    Section 2471 of this title, referred to in subsec. (l)(1)(B)(i), was 
omitted in the general amendment of chapter 44 (Sec. 2301 et seq.) of 
this title by Pub. L. 105-332, Sec. 1(b), Oct. 31, 1998, 112 Stat. 3076.
    Section 1113 of Public Law 97-252, referred to in subsec. (n), 
amended section 462 of Title 50, Appendix, War and National Defense, and 
enacted provisions set out as a note under section 462 of Title 50, 
Appendix.
    This chapter, referred to in subsec. (o), was in the original ``this 
Act'', meaning Pub. L. 89-329, as amended, known as the Higher Education 
Act of 1965. For complete classification of this Act to the Code, see 
Short Title note set out under section 1001 of this title and Tables.


                            Prior Provisions

    A prior section 1091, Pub. L. 89-329, title IV, Sec. 484, as added 
Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat. 1448; Pub. 
L. 99-272, title XVI, Sec. 16032(a), (b), Apr. 7, 1986, 100 Stat. 354, 
related to student eligibility for assistance, prior to the general 
revision of this part by Pub. L. 99-498.
    Another prior section 1091, Pub. L. 89-329, title V, Sec. 501, Nov. 
8, 1965, 79 Stat. 1254; Pub. L. 90-35, Sec. 2(c), June 29, 1967, 81 
Stat. 82; Pub. L. 92-318, title I, Sec. 141(b)(1), June 23, 1972, 86 
Stat. 285, set forth statement of purpose and authorization of 
appropriations for education professions development program, prior to 
repeal effective Sept. 30, 1976, by Pub. L. 94-482, title I, 
Sec. 151(a)(2), (b), Oct. 12, 1976, 90 Stat. 2151.


                               Amendments

    1998--Subsec. (a)(4). Pub. L. 105-244, Sec. 483(a)(1), substituted 
``the Secretary, as part of the original financial aid application 
process, a certification,'' for ``the institution of higher education 
which the student intends to attend, or is attending (or in the case of 
a loan or loan guarantee with the lender), a document'' in introductory 
provisions.
    Subsec. (a)(5). Pub. L. 105-244, Sec. 483(a)(2), substituted ``a 
citizen of any one of the Freely Associated States'' for ``or a 
permanent resident of the Trust Territory of the Pacific Islands, Guam, 
or the Northern Mariana Islands''.
    Subsec. (d). Pub. L. 105-244, Sec. 483(b), struck out ``either'' 
after ``shall meet'' in introductory provisions and added par. (3).
    Subsec. (j). Pub. L. 105-244, Sec. 483(c), amended heading and text 
of subsec. (j) generally. Prior to amendment, text read as follows: 
``Notwithstanding any other provision of law, a student shall be 
eligible, if otherwise qualified, for assistance under subparts 1, 3, 
and 6, and division 1 of subpart 2, of part A of this subchapter, and 
part C of subchapter I of chapter 34 of title 42, if the student is 
otherwise qualified and--
        ``(1) is a citizen of the Federated States of Micronesia, the 
    Republic of the Marshall Islands, or the Republic of Palau, and 
    attends an institution of higher education in a State or a public or 
    nonprofit private institution of higher education in the Federated 
    States of Micronesia, the Republic of the Marshall Islands, or the 
    Republic of Palau; or
        ``(2) meets the requirements of subsection (a)(5) of this 
    section and attends a public or nonprofit private institution of 
    higher education in the Federated States of Micronesia, the Republic 
    of the Marshall Islands, or the Republic of Palau.''
    Subsec. (l)(1). Pub. L. 105-244, Sec. 483(d), amended heading and 
text of par. (1) generally. Prior to amendment, text read as follows: 
``A student enrolled in a course of instruction at an eligible 
institution of higher education (other than an institution that meets 
the definition in section 2471(4)(C) of this title) that is offered in 
whole or in part through telecommunications and leads to a recognized 
associate, bachelor, or graduate degree conferred by such institution 
shall not be considered to be enrolled in correspondence courses unless 
the total amount of telecommunications and correspondence courses at 
such institution equals or exceeds 50 percent of such courses.''
    Subsec. (q). Pub. L. 105-244, Sec. 483(e), added subsec. (q).
    Subsec. (r). Pub. L. 105-244, Sec. 483(f)(1), added subsec. (r).
    1996--Subsec. (g)(4)(B)(i). Pub. L. 104-208 amended cl. (i) 
generally. Prior to amendment, cl. (i) read as follows: ``the 
institution shall transmit to the Immigration and Naturalization Service 
photostatic or other similar copies of such documents for official 
verification,''.
    1994--Subsec. (j). Pub. L. 103-382 amended heading and text of 
subsec. (j) generally. Prior to amendment, text read as follows: 
``Notwithstanding any other provision of law, a student who meets the 
requirements of paragraph (a)(5) of this section or who is a resident of 
the freely associated states, and who attends a public or nonprofit 
institution of higher education located in any of the freely associated 
states rather than a State, shall be eligible, if otherwise qualified, 
for assistance under subpart 1, 2, or 4 of part A of this subchapter or 
part C of subchapter I of chapter 34 of title 42.''
    1993--Subsec. (a)(4)(B). Pub. L. 103-208, Sec. 2(h)(13), inserted 
``, except that the provisions of this subparagraph shall not apply to a 
student from the Republic of the Marshall Islands, the Federated States 
of Micronesia, or the Republic of Palau'' after ``number''.
    Subsec. (a)(5). Pub. L. 103-208, Sec. 2(h)(14), substituted ``able 
to provide evidence from the Immigration and Naturalization Service that 
he or she is in the United States for other than a temporary purpose 
with the intention of becoming a citizen or permanent resident'' for 
``in the United States for other than a temporary purpose and able to 
provide evidence from the Immigration and Naturalization Service of his 
or her intent to become a permanent resident''.
    Subsec. (b)(2)(C). Pub. L. 103-208, Sec. 2(h)(15), added subpar. 
(C).
    Subsec. (b)(3). Pub. L. 103-208, Sec. 2(h)(16), substituted ``part B 
or C of this subchapter'' for ``part B of this subchapter'' in closing 
provisions.
    Subsec. (f). Pub. L. 103-208, Sec. 2(h)(17), (25), redesignated 
subsec. (g) as (f) and struck out heading and text of former subsec. 
(f). Text read as follows: ``Notwithstanding any other provision of law, 
the Secretary may not require, or prescribe regulations that require, 
institutions to verify the accuracy of data used to determine the 
eligibility for any program under this subchapter and part C of 
subchapter I of chapter 34 of title 42 for more than 30 percent of the 
applicants in any award year. In carrying out the provisions of this 
subsection no eligible institution shall be required to verify more than 
30 percent of such applicants in any award year. Nothing in this 
subsection shall preclude the Secretary from verifying all applications 
for aid through the use of any means available, including through the 
exchange of information with any other Federal agency.''
    Subsec. (g). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec. 
(h) as (g). Former subsec. (g) redesignated (f).
    Pub. L. 103-208, Sec. 2(h)(18), which directed insertion of a comma 
after ``, Part C'' wherever appearing, was executed by inserting a comma 
after ``, part C'' wherever appearing, to reflect the probable intent of 
Congress.
    Subsec. (h). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec. 
(i) as (h). Former subsec. (h) redesignated (g).
    Pub. L. 103-208, Sec. 2(h)(19), substituted ``constitute'' for 
``constitutes'' in introductory provisions of par. (4)(B).
    Subsec. (i). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec. 
(j) as (i). Former subsec. (i) redesignated (h).
    Pub. L. 103-208, Sec. 2(h)(22), struck out par. (4) which read as 
follows: ``because of a fair hearing process described in subsection 
(h)(5)(B) of this section.''
    Pub. L. 103-208, Sec. 2(h)(21), substituted ``(h)(4)(B)(i)'' for 
``(h)(4)(B)(ii)'' and ``student.'' for ``student, or'' in par. (3).
    Pub. L. 103-208, Sec. 2(h)(20), inserted ``or'' after 
``documentation,'' and substituted ``(h)(4)(A)(i)'' for 
``(h)(4)(A)(ii)'' in par. (2).
    Subsecs. (j) to (m). Pub. L. 103-208, Sec. 2(h)(25), redesignated 
subsecs. (k) to (n) as (j) to (m), respectively. Former subsec. (j) 
redesignated (i).
    Subsec. (n). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec. 
(o) as (n). Former subsec. (n) redesignated (m).
    Pub. L. 103-208, Sec. 2(h)(23), substituted ``parts B, C,'' for 
``part B, C,''.
    Subsecs. (o), (p). Pub. L. 103-208, Sec. 2(h)(25), redesignated 
subsecs. (p) and (q) as (o) and (p), respectively. Former subsec. (o) 
redesignated (n).
    Subsec. (q). Pub. L. 103-208, Sec. 2(h)(25), redesignated subsec. 
(q) as (p).
    Pub. L. 103-208, Sec. 2(h)(24), substituted ``documented evidence of 
a social security number that is determined by the institution to be 
correct'' for ``a correct social security number'' in par. (2).
    1992--Subsec. (a)(1). Pub. L. 102-325, Sec. 484(a)(1), inserted 
``(including a program of study abroad approved for credit by the 
eligible institution at which such student is enrolled)'' after ``or 
other program''.
    Subsec. (a)(4). Pub. L. 102-325, Sec. 484(a)(2), added par. (4) and 
struck out former par. (4) which read as follows: ``file with the 
institution of higher education which the student intends to attend, or 
is attending (or in the case of a loan or loan guarantee with the 
lender), a statement of educational purpose (which need not be notarized 
but which shall include such student's social security number or, if the 
student does not have a social security number, such student's student 
identification number) stating that the money attributable to such 
grant, loan, or loan guarantee will be used solely for expenses related 
to attendance or continued attendance at such institution; and''.
    Subsec. (b)(4)(B). Pub. L. 102-325, Sec. 484(b)(1)(A), substituted 
``part B, C, or D of this subchapter or work-study assistance under part 
C of subchapter I of chapter 34 of title 42'' for ``part B of this 
subchapter'' in concluding provisions.
    Subsec. (b)(5). Pub. L. 102-325, Sec. 484(b)(1)(B), added par. (5).
    Subsec. (d). Pub. L. 102-325, Sec. 484(c), amended subsec. (d) 
generally. Prior to amendment, subsec. (d) read as follows: ``In order 
for a student who does not have a certificate of graduation from a 
school providing secondary education, or the recognized equivalent of 
such certificate, to be eligible for any assistance under subparts 1, 2, 
and 3 of part A and parts B, C, and D of this subchapter and part C of 
subchapter I of chapter 34 of title 42, the student shall pass an 
independently administered examination approved by the Secretary.''
    Subsec. (f). Pub. L. 102-325, Sec. 484(d), inserted at end ``Nothing 
in this subsection shall preclude the Secretary from verifying all 
applications for aid through the use of any means available, including 
through the exchange of information with any other Federal agency.''
    Subsec. (g). Pub. L. 102-325, Sec. 484(e), designated existing 
provisions as par. (1), inserted ``, part C'' after ``part B'' in two 
places and ``fraudulently'' before ``borrowed'' in two places, and added 
par. (2).
    Subsec. (h). Pub. L. 102-325, Sec. 484(f), amended subsec. (h) 
generally. Prior to amendment, subsec. (h) contained pars. (1) to (6) 
relating to requirements for verification of student immigration status.
    Subsec. (k). Pub. L. 102-325, Sec. 484(h), made technical amendment 
to directory language of Pub. L. 102-73, Sec. 801(a). See 1991 Amendment 
note below.
    Subsecs. (l) to (q). Pub. L. 102-325, Sec. 484(g), added subsecs. 
(l) to (q).
    1991--Subsec. (a)(1). Pub. L. 102-26, Sec. 2(c)(2), inserted before 
semicolon at end ``, and not be enrolled in an elementary or secondary 
school''.
    Subsec. (d). Pub. L. 102-26, Sec. 2(d)(2)(A), repealed Pub. L. 101-
508, Sec. 3005(a). See 1990 Amendment note below.
    Pub. L. 102-26, Sec. 2(b), amended subsec. (d) generally. Prior to 
amendment, subsec. (d) read as follows: ``A student who is admitted on 
the basis of the ability to benefit from the education or training in 
order to remain eligible for any grant, loan, or work assistance under 
this subchapter and part C of subchapter I of chapter 34 of title 42 
shall--
        ``(1) receive the general education diploma prior to the 
    student's certification or graduation from the program of study, or 
    by the end of the first year of the course of study, whichever is 
    earlier;
        ``(2) be counseled prior to admission and be enrolled in and 
    successfully complete the institutionally prescribed program of 
    remedial or developmental education not to exceed one academic year 
    or its equivalent; or
        ``(3)(A) be administered a nationally recognized, standardized, 
    or industry developed test, subject to criteria developed by the 
    appropriate accrediting association, measuring the applicant's 
    aptitude to complete successfully the program to which the applicant 
    has applied; and
        ``(B) with respect to applicants who are unable to satisfy the 
    institutions' admissions testing requirements specified in 
    subparagraph (A), be enrolled in and successfully complete an 
    institutionally prescribed program or course of remedial or 
    developmental education not to exceed one academic year or its 
    equivalent.
In order to be eligible for assistance a student cannot be enrolled in 
either an elementary or a secondary school.''
    Subsec. (k). Pub. L. 102-73, as amended by Pub. L. 102-325, 
Sec. 484(h), added subsec. (k).
    1990--Subsec. (d). Pub. L. 101-508, which amended subsec. (d) 
generally to read: ``In order for a student who is admitted on the basis 
of ability to benefit from the education or training offered to be 
eligible for any grant, loan, or work assistance under this subchapter 
and part C of subchapter I of chapter 34 of title 42, the student shall, 
prior to enrollment, pass an independently administered examination 
approved by the Secretary.'', was repealed by Pub. L. 102-26, 
Sec. 2(d)(2)(A). See Construction of 1991 Amendment note below.
    1988--Subsec. (a)(1). Pub. L. 100-369, Sec. 6(1), substituted 
``subsections (b)(3) and (b)(4)'' for ``subsection (b)(2)''.
    Subsec. (b)(1). Pub. L. 100-369, Sec. 1(1), substituted ``section 
1078-2 or 1078-3'' for ``section 1078-1, 1078-2, or 1078-3''.
    Subsec. (b)(1)(A). Pub. L. 100-369, Sec. 1(2), added subpar. (A) and 
struck out former subpar. (A) which read as follows: ``have received a 
determination of eligibility or ineligibility for a grant under such 
subpart 1 for such period of enrollment; or''.
    Subsec. (b)(2), (3). Pub. L. 100-369, Sec. 2, added par. (2) and 
redesignated former par. (2) as (3).
    Subsec. (b)(4). Pub. L. 100-369, Sec. 6(2), added par. (4).
    Subsecs. (c) to (e), (h) to (j). Pub. L. 100-525 redesignated 
subsecs. (c) to (e) enacted by Pub. L. 99-603 as (h) to (j), 
respectively, and inserted headings, substituted references to subsec. 
(h) for references to subsec. (c) wherever appearing, and in closing 
provisions of subsec. (j) substituted ``date'' for ``date of''.
    1987--Subsec. (a)(1). Pub. L. 100-50, Sec. 15(7)(A), inserted ``, 
except as provided in subsection (b)(2) of this section'' before 
semicolon at end.
    Subsec. (b). Pub. L. 100-50, Sec. 15(7)(B)-(D), designated existing 
provision as par. (1), redesignated former pars. (1) and (2) as subpars. 
(A) and (B), respectively, and added par. (2).
    Subsec. (d). Pub. L. 100-50, Sec. 15(8), added pars. (2) and (3) and 
last sentence relating to ineligibility for assistance if a student is 
enrolled in either an elementary or a secondary school, and struck out 
former par. (2) which read as follows:
    ``(A) be counseled prior to admissions or be administered a 
nationally recognized standardized or industry developed test, subject 
to criteria developed by the appropriate accrediting association, 
measuring the applicant's aptitude to complete successfully the program 
to which he has applied; and
    ``(B) with respect to applicants who are unable to satisfy the 
institution's admissions testing requirements specified in subparagraph 
(A), be enrolled in an institutionally prescribed program or course of 
remedial or developmental education, not to exceed one academic year or 
its equivalent.''
    Subsec. (f). Pub. L. 100-50, Sec. 15(9), inserted at end ``In 
carrying out provisions of this subsection no eligible institution shall 
be required to verify more than 30 percent of such applications in any 
award year.''
    1986--Subsec. (c). Pub. L. 99-603 added subsec. (c) requiring 
immigration status verification.
    Subsec. (d). Pub. L. 99-603 added subsec. (d) limiting enforcement 
actions against institutions.
    Subsec. (e). Pub. L. 99-603 added subsec. (e) relating to validity 
of loan guarantees for loan payments made before completion of 
immigration status verification.


                    Effective Date of 1998 Amendment

    Amendment by section 483(a)-(e) of 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.
    Pub. L. 105-244, title IV, Sec. 483(f)(2), Oct. 7, 1998, 112 Stat. 
1737, provided that: ``The amendment made by paragraph (1) [amending 
this section], regarding suspension of eligibility for drug-related 
offenses, shall apply with respect to financial assistance to cover the 
costs of attendance for periods of enrollment beginning after the date 
of enactment of this Act [Oct. 7, 1998].''


                    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 section 484(a), (b)(1)(B), and (c) to (h) of Pub. L. 
102-325 effective July 23, 1992, except that subsec. (m)(1) of this 
section, relating to proportion of courses permitted to be 
correspondence courses, as added by such amendment, effective on and 
after Oct. 1, 1992, see section 498 of Pub. L. 102-325, set out as a 
note under section 1088 of this title, and subsec. (n) of this section, 
relating to eligibility of students with first baccalaureate or 
professional degree for assistance, as added by such amendment, 
effective on and after Dec. 1, 1987, see section 484(i) of Pub. L. 102-
325, set out below.
    Section 484(b)(2) of Pub. L. 102-325 provided that: ``The amendments 
made by paragraph (1)(A) of this subsection [amending this section] 
shall be effective on and after December 1, 1987.''
    Section 484(i) of Pub. L. 102-325, as added by Pub. L. 103-208, 
Sec. 2(k)(8), Dec. 20, 1993, 107 Stat. 2486, provided that: ``The 
amendments made by subsection (g) [section 484(g) of Pub. L. 102-325] 
with respect to the addition of subsection (n) [adding subsec. (n) of 
this section] shall be effective on and after December 1, 1987.''


                    Effective Date of 1991 Amendment

    Amendment by Pub. L. 102-26 applicable to any grant, loan, or work 
assistance to cover the cost of instruction for periods of enrollment 
beginning on or after July 1, 1991, see section 2(d)(1) of Pub. L. 102-
26, set out as a note under section 1085 of this title.


                    Effective Date of 1988 Amendments

    Amendment by Pub. L. 100-525 effective as if included in enactment 
of Immigration Reform and Control Act of 1986, Pub. L. 99-603, see 
section 2(s) of Pub. L. 100-525, set out as a note under section 1101 of 
Title 8, Aliens and Nationality.
    Section 13 of Pub. L. 100-369 provided that:
    ``(a) General Rule.--Except as otherwise provided, the amendments 
made by this Act to title IV of the Higher Education Act of 1965 
[amending this section and section 1078-1 of this title] shall be 
effective for any loan for which the eligibility of the borrower is 
certified by the institution 30 days after the date of enactment of this 
Act [July 18, 1988].
    ``(b) Special Rules.--(1) The amendments made by section 5 [amending 
this section and sections 1077 and 1078 of this title] shall be 
effective with respect to loans made on or after October 1, 1988.
    ``(2) The amendments made by sections 6, 7, 8, 9, 10, 11, and 12 
[amending this section, sections 1058, 1061, 1062, 1070a-1, 1070a-3, 
1070a-4, 1070a-6, 1071, 1077, 1078, 1087-2, 1087dd, 1087ee, 1087nn, 
1087ss, 1087vv, 1132d-1, 1132g-1, and 1134m of this title, and section 
1905 of Title 48, Territories and Insular Possessions] shall take effect 
on the date of enactment of this Act [July 18, 1988].''


                    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.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-603 effective Oct. 1, 1988, with certain 
exceptions and qualifications, see section 121(c)(3), (4) of Pub. L. 99-
603, set out as a note under section 1320b-7 of Title 42, The Public 
Health and Welfare.


                             Effective Date

    Section effective Oct. 17, 1986, except as otherwise provided, see 
section 2 of Pub. L. 99-498, set out as a note under section 1001 of 
this title.
    Section 407(b) of Pub. L. 99-498 provided that:
    ``(1) Sections 483(e) and 484(d) of the Act [20 U.S.C. 1090(e), 
1091(d)] as amended by this section shall apply to student assistance 
awarded for periods of enrollment beginning on or after July 1, 1987.
    ``(2) The changes made in section 484(a)(1) of the Act [20 U.S.C. 
1091(a)(1)] shall apply to student assistance awarded for periods of 
enrollment beginning on or after July 1, 1987.
    ``(3) Section 484(c) of the Act [20 U.S.C. 1091(c)] as amended by 
this section shall apply only to student assistance awarded for periods 
of enrollment beginning on or after July 1, 1987, to individuals who 
were not awarded such assistance for any preceding period of enrollment.
    ``(4) Sections 484(f), 485(b), and 487(a)(10) of the Act [20 U.S.C. 
1091(f), 1092(b), 1094(a)(10)] as amended by this section shall apply 
only to periods of enrollment beginning on or after July 1, 1987.''


                     Construction of 1991 Amendment

    For repeal of section 3005 of Pub. L. 101-508 and application of 
subsec. (d) of this section as if such section 3005 had not been 
enacted, see section 2(d)(2)(A) of Pub. L. 102-26, set out as a note 
under section 1088 of this title.


                          Satisfactory Progress

    Section 1301 of Pub. L. 99-498, as amended by Pub. L. 100-50, 
Sec. 23(1), June 3, 1987, 101 Stat. 362, directed Secretary, through the 
Office of Educational Research and Improvement, to conduct survey over 
5-year period ending Sept. 30, 1991, on impact on grades of students of 
amendments made by Pub. L. 99-498 to subsec. (c) of this section and to 
submit annual reports to Congress of survey, prior to repeal by Pub. L. 
105-332, Sec. 6(a), Oct. 31, 1998, 112 Stat. 3127.


           Denial of Student Assistance to Certain Noncitizens

    Section 1361 of Pub. L. 99-498 established in Department of 
Education the Alien Youth Education Opportunity Panel and provided for 
Panel's composition, duties, reports, administrative and clerical 
support, compensation and expenses, and access to information, prior to 
repeal by Pub. L. 105-332, Sec. 6(a), Oct. 31, 1998, 112 Stat. 3127.


Financial Aid to Students Not Deemed Income or Resources for Purposes of 
                  Certain Social Security Act Programs

    Pub. L. 90-575, title V, Sec. 507, Oct. 16, 1968, 82 Stat. 1063, as 
amended by Pub. L. 96-88, title III, Sec. 301(a)(1), Oct. 17, 1979, 93 
Stat. 677, provided that: ``For the purpose of any program assisted 
under title I, IV, X, XIV, XVI, or XIX of the Social Security Act 
[subchapters I, IV, X, XIV, XVI, or XIX of chapter 7 of Title 42, The 
Public Health and Welfare], no grant or loan to any undergraduate 
student for educational purposes made or insured under any program 
administered by the Secretary of Education shall be considered to be 
income or resources.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1002, 1070, 1070a, 1070a-24, 
1070a-34, 1070b-1, 1070b-2, 1077, 1078, 1078-2, 1078-6, 1078-8, 1087d, 
1087dd, 1092, 1093, 1094, 1096, 1134, 1135c of this title; title 26 
section 25A; title 42 sections 2753, 3796d-4, 12591, 12602.
