 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                  SUBCHAPTER V--DEVELOPING INSTITUTIONS
 
                  Part A--Hispanic-Serving Institutions
 
Sec. 1101a. Definitions; eligibility


(a) Definitions

    For the purpose of this subchapter:

              (1) Educational and general expenditures

        The term ``educational and general expenditures'' means the 
    total amount expended by an institution for instruction, research, 
    public service, academic support (including library expenditures), 
    student services, institutional support, scholarships and 
    fellowships, operation and maintenance expenditures for the physical 
    plant, and any mandatory transfers that the institution is required 
    to pay by law.

                      (2) Eligible institution

        The term ``eligible institution'' means--
            (A) an institution of higher education--
                (i) that has an enrollment of needy students as required 
            by subsection (b) of this section;
                (ii) except as provided in section 1103a(b) of this 
            title, the average educational and general expenditures of 
            which are low, per full-time equivalent undergraduate 
            student, in comparison with the average educational and 
            general expenditures per full-time equivalent undergraduate 
            student of institutions that offer similar instruction;
                (iii) that is--
                    (I) legally authorized to provide, and provides 
                within the State, an educational program for which the 
                institution awards a bachelor's degree; or
                    (II) a junior or community college;

                (iv) that is accredited by a nationally recognized 
            accrediting agency or association determined by the 
            Secretary to be reliable authority as to the quality of 
            training offered or that is, according to such an agency or 
            association, making reasonable progress toward 
            accreditation;
                (v) that meets such other requirements as the Secretary 
            may prescribe; and
                (vi) that is located in a State; and

            (B) any branch of any institution of higher education 
        described under subparagraph (A) that by itself satisfies the 
        requirements contained in clauses (i) and (ii) of such 
        subparagraph.

    For purposes of the determination of whether an institution is an 
    eligible institution under this paragraph, the factor described 
    under subparagraph (A)(i) shall be given twice the weight of the 
    factor described under subparagraph (A)(ii).

                         (3) Endowment fund

        The term ``endowment fund'' means a fund that--
            (A) is established by State law, by a Hispanic-serving 
        institution, or by a foundation that is exempt from Federal 
        income taxation;
            (B) is maintained for the purpose of generating income for 
        the support of the institution; and
            (C) does not include real estate.

                  (4) Full-time equivalent students

        The term ``full-time equivalent students'' means the sum of the 
    number of students enrolled full time at an institution, plus the 
    full-time equivalent of the number of students enrolled part time 
    (determined on the basis of the quotient of the sum of the credit 
    hours of all part-time students divided by 12) at such institution.

                  (5) Hispanic-serving institution

        The term ``Hispanic-serving institution'' means an institution 
    of higher education that--
            (A) is an eligible institution;
            (B) at the time of application, has an enrollment of 
        undergraduate full-time equivalent students that is at least 25 
        percent Hispanic students; and
            (C) provides assurances that not less than 50 percent of the 
        institution's Hispanic students are low-income individuals.

                   (6) Junior or community college

        The term ``junior or community college'' means an institution of 
    higher education--
            (A) that admits as regular students persons who are beyond 
        the age of compulsory school attendance in the State in which 
        the institution is located and who have the ability to benefit 
        from the training offered by the institution;
            (B) that does not provide an educational program for which 
        the institution awards a bachelor's degree (or an equivalent 
        degree); and
            (C) that--
                (i) provides an educational program of not less than 2 
            years in duration that is acceptable for full credit toward 
            such a degree; or
                (ii) offers a 2-year program in engineering, 
            mathematics, or the physical or biological sciences, 
            designed to prepare a student to work as a technician or at 
            the semiprofessional level in engineering, scientific, or 
            other technological fields requiring the understanding and 
            application of basic engineering, scientific, or 
            mathematical principles of knowledge.

                      (7) Low-income individual

        The term ``low-income individual'' means an individual from a 
    family whose taxable income for the preceding year did not exceed 
    150 percent of an amount equal to the poverty level determined by 
    using criteria of poverty established by the Bureau of the Census.

(b) Enrollment of needy students

    For the purpose of this subchapter, the term ``enrollment of needy 
students'' means an enrollment at an institution with respect to which--
        (1) at least 50 percent of the degree students so enrolled are 
    receiving need-based assistance under subchapter IV of this chapter 
    and part C of subchapter I of chapter 34 of title 42 in the second 
    fiscal year preceding the fiscal year for which the determination is 
    made (other than loans for which an interest subsidy is paid 
    pursuant to section 1078 of this title); or
        (2) a substantial percentage of the students so enrolled are 
    receiving Federal Pell Grants in the second fiscal year preceding 
    the fiscal year for which determination is made, compared to the 
    percentage of students receiving Federal Pell Grants at all such 
    institutions in the second fiscal year preceding the fiscal year for 
    which the determination is made, unless the requirement of this 
    paragraph is waived under section 1103a(a) of this title.

(Pub. L. 89-329, title V, Sec. 502, as added Pub. L. 105-244, title V, 
Sec. 501, Oct. 7, 1998, 112 Stat. 1766.)


                            Prior Provisions

    A prior section 1101a, Pub. L. 89-329, title V, Sec. 502, as added 
Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat. 1496, 
authorized appropriations for this subchapter, prior to the general 
amendment of this subchapter by Pub. L. 102-325.
    A prior section 502 of Pub. L. 89-329 was classified to section 
1102a of this title, prior to the general amendment of this subchapter 
by Pub. L. 105-244.
    Another prior section 502 of Pub. L. 89-329 was classified to 
section 1091a of this title, prior to repeal by Pub. L. 94-482.

                  Section Referred to in Other Sections

    This section is referred to in sections 1103, 1103a, 1131-1 of this 
title.
