 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                  SUBCHAPTER V--DEVELOPING INSTITUTIONS
 
                       Part B--General Provisions
 
Sec. 1103a. Waiver authority and reporting requirement


(a) Waiver requirements; need-based assistance students

    The Secretary may waive the requirements set forth in section 
1101a(a)(2)(A)(i) of this title in the case of an institution--
        (1) that is extensively subsidized by the State in which the 
    institution is located and charges low or no tuition;
        (2) that serves a substantial number of low-income students as a 
    percentage of the institution's total student population;
        (3) that is contributing substantially to increasing higher 
    education opportunities for educationally disadvantaged, 
    underrepresented, or minority students, who are low-income 
    individuals;
        (4) which is substantially increasing higher educational 
    opportunities for individuals in rural or other isolated areas which 
    are unserved by postsecondary institutions; or
        (5) wherever located, if the Secretary determines that the 
    waiver will substantially increase higher education opportunities 
    appropriate to the needs of Hispanic Americans.

(b) Waiver determinations; expenditures

                      (1) Waiver determinations

        The Secretary may waive the requirements set forth in section 
    1101a(a)(2)(A)(ii) of this title if the Secretary determines, based 
    on persuasive evidence submitted by the institution, that the 
    institution's failure to meet the requirements is due to factors 
    which, when used in the determination of compliance with the 
    requirements, distort such determination, and that the institution's 
    designation as an eligible institution under part A of this 
    subchapter is otherwise consistent with the purposes of this 
    subchapter.

                          (2) Expenditures

        The Secretary shall submit to Congress every other year a report 
    concerning the institutions that, although not satisfying the 
    requirements of section 1101a(a)(2)(A)(ii) of this title, have been 
    determined to be eligible institutions under part A of this 
    subchapter. Such report shall--
            (A) identify the factors referred to in paragraph (1) that 
        were considered by the Secretary as factors that distorted the 
        determination of compliance with clauses (i) and (ii) of section 
        1101a(a)(2)(A) of this title; and
            (B) contain a list of each institution determined to be an 
        eligible institution under part A of this subchapter including a 
        statement of the reasons for each such determination.

(Pub. L. 89-329, title V, Sec. 512, as added Pub. L. 105-244, title V, 
Sec. 501, Oct. 7, 1998, 112 Stat. 1772.)


                            Prior Provisions

    A prior section 1103a, Pub. L. 89-329, title V, Sec. 512, as added 
Pub. L. 102-325, title V, Sec. 501(a), July 23, 1992, 106 Stat. 674, 
related to eligible recipients, prior to the general amendment of this 
subchapter by Pub. L. 105-244.
    Another prior section 1103a, Pub. L. 89-329, title V, Sec. 512, as 
added Pub. L. 99-498, title V, Sec. 501(a), Oct. 17, 1986, 100 Stat. 
1496, related to selection procedures for grants to institutions 
offering midcareer teacher training for nontraditional students, prior 
to the general amendment of this subchapter by Pub. L. 102-325.
    A prior section 512 of Pub. L. 89-329 was classified to section 1102 
of this title prior to repeal by Pub. L. 97-35.

                  Section Referred to in Other Sections

    This section is referred to in section 1101a of this title.
