 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part F--General Provisions Relating to Student Assistance Programs
 
Sec. 1096. Administrative expenses


(a) Amount of payments

    From the sums appropriated for any fiscal year for the purpose of 
the program authorized under subpart 1 of part A of this subchapter, the 
Secretary shall reserve such sums as may be necessary to pay to each 
institution with which he has an agreement under section 1094 of this 
title, an amount equal to $5 for each student at that institution who 
receives assistance under subpart 1 of part A of this subchapter. In 
addition, an institution which has entered into an agreement with the 
Secretary under subpart 3 of part A of this subchapter or part C of 
subchapter I of chapter 34 of title 42, or under part D of this 
subchapter shall be entitled for each fiscal year which such institution 
disburses funds to eligible students under any such part to a payment 
for the purpose set forth in subsection (b) of this section. The payment 
for a fiscal year shall be payable from each such allotment by payment 
in accordance with regulations of the Secretary and shall be equal to 5 
percent of the institution's first $2,750,000 of expenditures plus 4 
percent of the institution's expenditures greater than $2,750,000 and 
less than $5,500,000, plus 3 percent of the institution's expenditures 
in excess of $5,500,000 during the fiscal year from the sum of its 
grants to students under subpart 3 of part A of this subchapter, its 
expenditures during such fiscal year under part C of subchapter I of 
chapter 34 of title 42 for compensation of students, and the principal 
amount of loans made during such fiscal year from its student loan fund 
established under part D of this subchapter, excluding the principal 
amount of any such loans which the institution has agreed to assign 
under section 1087cc(a)(6)(B) \1\ of this title. In addition, the 
Secretary shall provide for payment to each institution of higher 
education an amount equal to 100 percent of the costs incurred by the 
institution in implementing and operating the immigration status 
verification system under section 1091(h) \1\ of this title.
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    \1\ See References in Text note below.
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(b) Purpose of payments

    (1) The sums paid to institutions under this part are for the sole 
purpose of offsetting the administrative costs of the programs described 
in subsection (a) of this section.
    (2) If the institution enrolls a significant number of students who 
are (A) attending the institution less than full time, or (B) 
independent students, the institution shall use a reasonable proportion 
of the funds available under this section for financial aid services 
during times and in places that will most effectively accommodate the 
needs of such students.

(Pub. L. 89-329, title IV, Sec. 489, as added Pub. L. 99-498, title IV, 
Sec. 407(a), Oct. 17, 1986, 100 Stat. 1491; amended Pub. L. 99-603, 
title I, Sec. 121(b)(7), Nov. 6, 1986, 100 Stat. 3391; Pub. L. 100-50, 
Sec. 15(15), June 3, 1987, 101 Stat. 357; Pub. L. 102-325, title IV, 
Secs. 446(c), 493, July 23, 1992, 106 Stat. 567, 630; Pub. L. 103-208, 
Sec. 2(h)(44), (k)(6), Dec. 20, 1993, 107 Stat. 2478, 2486.)

                       References in Text

    Section 1087cc(a)(6)(B) of this title, referred to in subsec. (a), 
was redesignated section 1087cc(a)(5)(B) by Pub. L. 105-244, title IV, 
Sec. 463(a)(3), Oct. 7, 1998, 112 Stat. 1724.
    Section 1091(h) of this title, referred to in subsec. (a), was 
redesignated section 1091(g) by Pub. L. 103-208, Sec. 2(h)(25), Dec. 20, 
1993, 107 Stat. 2477.


                            Prior Provisions

    A prior section 1096, Pub. L. 89-329, title IV, Sec. 489, as added 
Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat. 1453; 
amended Pub. L. 97-35, title V, Sec. 537(a)(2), Aug. 13, 1981, 95 Stat. 
456, related to administrative expenses, prior to the general revision 
of this part by Pub. L. 99-498.


                               Amendments

    1993--Subsec. (a). Pub. L. 103-208, Sec. 2(k)(6), repealed Pub. L. 
102-325, Sec. 446(c). See 1992 Amendment note below.
    Pub. L. 103-208, Sec. 2(h)(44), substituted ``1091(h) of this 
title'' for ``1091(c) of this title''.
    1992--Subsec. (a). Pub. L. 102-325, Sec. 493(a)(3), substituted 
``subpart 3'' for ``subpart 2'' in two places.
    Pub. L. 102-325, Sec. 493(a)(1), (2), struck out ``(other than 
section 2756a of title 42)'' before ``, or under part D'' in second 
sentence and struck out fourth sentence which read as follows: ``The 
payment for a fiscal year for the purpose of subsection (b) of this 
section with respect to section 2756a of title 42 shall be payable from 
each allotment under part C of subchapter I of chapter 34 of title 42 in 
accordance with regulations of the Secretary, and shall be 10 percent of 
the institution's expenditures during such fiscal year under such 
section.''
    Pub. L. 102-325, Sec. 446(c), which directed amendment identical to 
amendment by Pub. L. 102-325, Sec. 493(a)(1), (2), above, was repealed 
by Pub. L. 103-208, Sec. 2(k)(6).
    Subsec. (b). Pub. L. 102-325, Sec. 493(b), designated existing 
provisions as par. (1) and added par. (2).
    1987--Subsec. (a). Pub. L. 100-50 made technical amendment to 
reference to section 2756a of title 42 to correct reference to 
corresponding section of original Act, requiring no change in text.
    1986--Subsec. (a). Pub. L. 99-603 inserted provision directing the 
Secretary to pay the costs incurred by institutions of higher education 
in implementing and operating the immigration status verification system 
under section 1091(c) 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 section 446(c) of 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.
    Amendment by section 493 of Pub. L. 102-325, relating to payments 
for administrative expenses, applicable with respect to funds provided 
for award years beginning on or after July 1, 1993, see section 498(7) 
of Pub. L. 102-325, set out as a note under section 1088 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.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-603 effective Oct. 1, 1987, see section 
121(c)(2) of Pub. L. 99-603, set out as a note under section 502 of 
Title 42, The Public Health and Welfare.

                  Section Referred to in Other Sections

    This section is referred to in sections 1070b-2, 1087cc of this 
title; title 42 sections 2753, 2756a.
