
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC2752]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 34--ECONOMIC OPPORTUNITY PROGRAM
 
                SUBCHAPTER I--RESEARCH AND DEMONSTRATIONS
 
                   Part C--Federal Work-Study Programs
 
Sec. 2752. Allocation of funds


(a) Allocation based on previous allocation

    (1) From the amount appropriated pursuant to section 2751(b) of this 
title for each fiscal year, the Secretary shall first allocate to each 
eligible institution for each succeeding fiscal year, an amount equal to 
100 percent of the amount such institution received under subsections 
(a) and (b) of this section for fiscal year 1999 (as such subsections 
were in effect with respect to allocations for such fiscal year).
    (2)(A) From the amount so appropriated, the Secretary shall next 
allocate to each eligible institution that began participation in the 
program under this part after fiscal year 1999 but is not a first or 
second time participant, an amount equal to the greater of--
        (i) $5,000; or
        (ii) 90 percent of the amount received and used under this part 
    for the first year it participated in the program.

    (B) From the amount so appropriated, the Secretary shall next 
allocate to each eligible institution that began participation in the 
program under this part after fiscal year 1999 and is a first or second 
time participant, an amount equal to the greatest of--
        (i) $5,000;
        (ii) an amount equal to (I) 90 percent of the amount received 
    and used under this part in the second preceding fiscal year by 
    eligible institutions offering comparable programs of instruction, 
    divided by (II) the number of students enrolled at such comparable 
    institutions in such fiscal year, multiplied by (III) the number of 
    students enrolled at the applicant institution in such fiscal year; 
    or
        (iii) 90 percent of the institution's allocation under this part 
    for the preceding fiscal year.

    (C) Notwithstanding subparagraphs (A) and (B) of this paragraph, the 
Secretary shall allocate to each eligible institution which--
        (i) was a first-time participant in the program in fiscal year 
    2000 or any subsequent fiscal year, and
        (ii) received a larger amount under this subsection in the 
    second year of participation,

an amount equal to 90 percent of the amount it received under this 
subsection in its second year of participation.
    (3)(A) If the amount appropriated for any fiscal year is less than 
the amount required to be allocated to all institutions under paragraph 
(1) of this subsection, then the amount of the allocation to each such 
institution shall be ratably reduced.
    (B) If the amount appropriated for any fiscal year is more than the 
amount required to be allocated to all institutions under paragraph (1) 
but less than the amount required to be allocated to all institutions 
under paragraph (2), then--
        (i) the Secretary shall allot the amount required to be 
    allocated to all institutions under paragraph (1), and
        (ii) the amount of the allocation to each institution under 
    paragraph (2) shall be ratably reduced.

    (C) If additional amounts are appropriated for any such fiscal year, 
such reduced amounts shall be increased on the same basis as they were 
reduced (until the amount allocated equals the amount required to be 
allocated under paragraphs (1) and (2) of this subsection).
    (4)(A) Notwithstanding any other provision of this section, the 
Secretary may allocate an amount equal to not more than 10 percent of 
the amount by which the amount appropriated in any fiscal year to carry 
out this part exceeds $700,000,000 among eligible institutions described 
in subparagraph (B).
    (B) In order to receive an allocation pursuant to subparagraph (A) 
an institution shall be an eligible institution from which 50 percent or 
more of the Pell Grant recipients attending such eligible institution 
graduate or transfer to a 4-year institution of higher education.

(b) Allocation of excess based on share of excess eligible amounts

    (1) From the remainder of the amount appropriated pursuant to 
section 2751(b) of this title after making the allocations required by 
subsection (a) of this section, the Secretary shall allocate to each 
eligible institution which has an excess eligible amount an amount which 
bears the same ratio to such remainder as such excess eligible amount 
bears to the sum of the excess eligible amounts of all such eligible 
institutions (having such excess eligible amounts).
    (2) For any eligible institution, the excess eligible amount is the 
amount, if any, by which--
        (A)(i) the amount of that institution's need (as determined 
    under subsection (c) of this section), divided by (ii) the sum of 
    the need of all institutions (as so determined), multiplied by (iii) 
    the amount appropriated pursuant to section 2751(b) of this title 
    for the fiscal year; exceeds
        (B) the amount required to be allocated to that institution 
    under subsection (a) of this section.

(c) Determination of institution's need

    (1) The amount of an institution's need is equal to the sum of the 
self-help need of the institution's eligible undergraduate students and 
the self-help need of the institution's eligible graduate and 
professional students.
    (2) To determine the self-help need of an institution's eligible 
undergraduate students, the Secretary shall--
        (A) establish various income categories for dependent and 
    independent undergraduate students;
        (B) establish an expected family contribution for each income 
    category of dependent and independent undergraduate students, 
    determined on the basis of the average expected family contribution 
    (computed in accordance with part F of this title [20 U.S.C. 1087kk 
    et seq.]) of a representative sample within each income category for 
    the second preceding fiscal year;
        (C) compute 25 percent of the average cost of attendance for all 
    undergraduate students;
        (D) multiply the number of eligible dependent students in each 
    income category by the lesser of--
            (i) 25 percent of the average cost of attendance for all 
        undergraduate students determined under subparagraph (C); or
            (ii) the average cost of attendance for all undergraduate 
        students minus the expected family contribution determined under 
        subparagraph (B) for that income category, except that the 
        amount computed by such subtraction shall not be less than zero;

        (E) add the amounts determined under subparagraph (D) for each 
    income category of dependent students; and
        (F) multiply the number of eligible independent students in each 
    income category by the lesser of--
            (i) 25 percent of the average cost of attendance for all 
        undergraduate students determined under subparagraph (C); or
            (ii) the average cost of attendance for all undergraduate 
        students minus the expected family contribution determined under 
        subparagraph (B) for that income category, except that the 
        amount computed by such subtraction for any income category 
        shall not be less than zero;

        (G) add the amounts determined under subparagraph (F) for each 
    income category of independent students; and
        (H) add the amounts determined under subparagraphs (E) and (G).

    (3) To determine the self-help need of an institution's eligible 
graduate and professional students, the Secretary shall--
        (A) establish various income categories of graduate and 
    professional students;
        (B) establish an expected family contribution for each income 
    category of graduate and professional students, determined on the 
    basis of the average expected family contribution (computed in 
    accordance with part F of this title [20 U.S.C. 1087kk et seq.]) of 
    a representative sample within each income category for the second 
    preceding fiscal year;
        (C) determine the average cost of attendance for all graduate 
    and professional students;
        (D) subtract from the average cost of attendance for all 
    graduate and professional students (determined under subparagraph 
    (C)), the expected family contribution (determined under 
    subparagraph (B)) for each income category, except that the amount 
    computed by such subtraction for any income category shall not be 
    less than zero;
        (E) multiply the amounts determined under subparagraph (D) by 
    the number of eligible students in each category; and
        (F) add the amounts determined under subparagraph (E) of this 
    paragraph for each income category.

    (4)(A) For purposes of paragraphs (2) and (3), the term ``average 
cost of attendance'' means the average of the attendance costs for 
undergraduate students and for graduate and professional students, which 
shall include (i) tuition and fees determined in accordance with 
subparagraph (B), (ii) standard living expenses determined in accordance 
with subparagraph (C), and (iii) books and supplies determined in 
accordance with subparagraph (D).
    (B) The average undergraduate and graduate and professional tuition 
and fees described in subparagraph (A)(i) shall be computed on the basis 
of information reported by the institution to the Secretary, which shall 
include (i) total revenue received by the institution from undergraduate 
and graduate tuition and fees for the second year preceding the year for 
which it is applying for an allocation, and (ii) the institution's 
enrollment for such second preceding year.
    (C) The standard living expense described in subparagraph (A)(ii) is 
equal to 150 percent of the difference between the income protection 
allowance for a family of five with one in college and the income 
protection allowance for a family of six with one in college for a 
single independent student.
    (D) The allowance for books and supplies described in subparagraph 
(A)(iii) is equal to $450.

(d) Reallocation of excess allocations

    (1) If institutions return to the Secretary any portion of the sums 
allocated to such institutions under this section for any fiscal year, 
the Secretary shall reallot such excess to eligible institutions which 
used at least 5 percent of the total amount of funds granted to such 
institution under this section to compensate students employed in 
tutoring in reading and family literacy activities in the preceding 
fiscal year. Such excess funds shall be reallotted to institutions which 
qualify under this subsection on the same basis as excess eligible 
amounts are allocated to institutions pursuant to subsection (b) of this 
section. Funds received by institutions pursuant to this subsection 
shall be used to compensate students employed in community service.
    (2) If, under paragraph (1) of this subsection, an institution 
returns more than 10 percent of its allocation, the institution's 
allocation for the next fiscal year shall be reduced by the amount 
returned. The Secretary may waive this paragraph for a specific 
institution if the Secretary finds that enforcing this paragraph would 
be contrary to the interest of the program.

(e) Filing deadlines

    The Secretary shall, from time to time, set dates before which 
institutions must file applications for allocations under this part.

(Pub. L. 89-329, title IV, Sec. 442, formerly title I, Sec. 142, as 
added, renumbered, and amended Pub. L. 90-575, title I, Secs. 131(a), 
(b)(1), (3), 133(a), 135, Oct. 16, 1968, 82 Stat. 1028, 1029; Pub. L. 
92-318, title I, Sec. 135B, June 23, 1972, 86 Stat. 270; Pub. L. 96-374, 
title IV, Secs. 432, 433, title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 
Stat. 1433, 1503; Pub. L. 99-498, title IV, Sec. 403(a), Oct. 17, 1986, 
100 Stat. 1429; Pub. L. 100-50, Sec. 11(a), June 3, 1987, 101 Stat. 348; 
Pub. L. 102-325, title IV, Sec. 442, July 23, 1992, 106 Stat. 564; Pub. 
L. 103-208, Sec. 2(d)(1), (2), Dec. 20, 1993, 107 Stat. 2470; Pub. L. 
105-244, title IV, Sec. 442(a), (b), Oct. 7, 1998, 112 Stat. 1712.)

                       References in Text

    Part F of this title, referred to in subsec. (c)(2)(B), (3)(B), 
means part F of title IV of Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, 
as amended, known as the Higher Education Act of 1965. Part F of title 
IV of such Act is classified generally to part E (Sec. 1087kk et seq.) 
of subchapter IV of chapter 28 of Title 20, Education. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 1001 of Title 20 and Tables.

                          Codification

    Section was originally enacted as section 122 of the Economic 
Opportunity Act of 1964, Pub. L. 88-452, title I, Aug. 20, 1964, 78 
Stat. 514. As such, it had been amended by Pub. L. 89-329, title IV, 
Sec. 441(1), Nov. 8, 1965, 79 Stat. 1249, and renumbered section 142 by 
Pub. L. 90-222, title I, Sec. 111(a), Dec. 23, 1967, 81 Stat. 726.
    Under Pub. L. 90-575, title I, Sec. 131(a), Oct. 16, 1968, 82 Stat. 
1028, section was transferred along with the remainder of Part C of 
title I of the Economic Opportunity Act of 1964, Pub. L. 88-452, and 
inserted as Part C of title IV of the Higher Education Act of 1965, Pub. 
L. 89-329. Former Part C of title IV of Pub. L. 89-329, as originally 
enacted, comprising sections 441 and 442 thereof, was stricken to 
accommodate the transferal but the amendment of this section by section 
441(1) of Pub. L. 89-329 has not been stricken. For amendment of section 
in addition to the transfers and redesignations treated above, see 1968 
Amendment note below.


                               Amendments

    1998--Subsec. (a)(1). Pub. L. 105-244, Sec. 442(a)(1), substituted 
``received under subsections (a) and (b) of this section for fiscal year 
1999 (as such subsections were in effect with respect to allocations for 
such fiscal year)'' for ``received and used under this part for fiscal 
year 1985''.
    Subsec. (a)(2)(A), (B). Pub. L. 105-244, Sec. 442(a)(2)(A), 
substituted ``1999'' for ``1985'' in introductory provisions.
    Subsec. (a)(2)(C)(i). Pub. L. 105-244, Sec. 442(a)(2)(B), 
substituted ``2000'' for ``1986''.
    Subsec. (b). Pub. L. 105-244, Sec. 442(b)(1), (2), redesignated 
subsec. (c) as (b), and struck out heading and text of former subsec. 
(b). Text read as follows: ``From one-quarter of the remainder of the 
amount appropriated pursuant to section 2751(b) of this title for any 
fiscal year (after making the allocations required by subsection (a) of 
this section), the Secretary shall allocate to each eligible institution 
an amount which bears the same ratio to such one-quarter as the amount 
the eligible institution receives for such fiscal year under subsection 
(a) of this section bears to the amount all such institutions receive 
under such subsection (a) of this section.''
    Subsec. (b)(1). Pub. L. 105-244, Sec. 442(b)(3), struck out ``three-
quarters of'' after ``From''.
    Subsec. (b)(2)(A)(i). Pub. L. 105-244, Sec. 442(b)(4), substituted 
``subsection (c)'' for ``subsection (d)''.
    Subsec. (c). Pub. L. 105-244, Sec. 442(b)(2), redesignated subsec. 
(d) as (c). Former subsec. (c) redesignated (b).
    Subsec. (c)(3). Pub. L. 105-244, Sec. 442(b)(5), struck out ``the 
Secretary, for academic year 1988-1989 shall use the procedures employed 
for academic year 1986-1987, and, for any subsequent academic years,'' 
after ``professional students,'' in introductory provisions.
    Subsec. (d). Pub. L. 105-244, Sec. 442(b)(2), redesignated subsec. 
(e) as (d). Former subsec. (d) redesignated (c).
    Subsec. (d)(1). Pub. L. 105-244, Sec. 442(b)(6), substituted ``5 
percent'' for ``10 percent'', ``in tutoring in reading and family 
literacy activities in'' for ``in community service in'', and 
``subsection (b)'' for ``subsection (c)''.
    Subsecs. (e), (f). Pub. L. 105-244, Sec. 442(b)(2), redesignated 
subsec. (f) as (e). Former subsec. (e) redesignated (d).
    1993--Subsec. (d)(4)(C). Pub. L. 103-208, Sec. 2(d)(1), substituted 
``150 percent of the difference between the income protection allowance 
for a family of five with one in college and the income protection 
allowance for a family of six with one in college'' for ``three-fourths 
in the Pell Grant family size offset''.
    Subsec. (e). Pub. L. 103-208, Sec. 2(d)(2), designated existing 
provisions as par. (1) and added par. (2).
    1992--Subsec. (a)(4). Pub. L. 102-325, Sec. 442(a), added par. (4).
    Subsec. (e). Pub. L. 102-325, Sec. 442(b), amended subsec. (e) 
generally. Prior to amendment, subsec. (e) read as follows:
    ``(1) If an institution returns to the Secretary any portion of the 
sums allocated to such institution under this section for any fiscal 
year the Secretary shall reallocate such excess in accordance with 
paragraph (2). Any sums reallocated under this subsection may be used in 
accordance with section 2755(a)(2) of this title.
    ``(2) The Secretary shall reallot not to exceed 25 percent of the 
amount available pursuant to paragraph (1) to eligible institutions for 
use in initiating, improving, and expanding programs of community 
service-learning conducted in accordance with section 2756a of this 
title. The Secretary shall allocate the remainder of the amounts 
available pursuant to paragraph (1) to eligible institutions based upon 
the criteria described in section 2756a(c) of this title.''
    1987--Subsec. (e)(2). Pub. L. 100-50, substituted ``not to exceed 25 
percent'' for ``25 percent'' and ``section 2756a(c) of this title'' for 
``subsection (c) of this section'', and made technical amendment to 
reference to section 2756a of this title to correct numerical 
designation of corresponding section of original act.
    1986--Pub. L. 99-498 amended section generally, substituting 
provisions relating to allocation of funds for provisions relating to 
allotments to States.
    1980--Subsec. (a). Pub. L. 96-374, Secs. 432(1)-(3), 1391(a)(1), 
substituted ``Secretary'' for ``Commissioner'' in provisions preceding 
cl. (1), substituted ``1 per centum'' for ``2 per centum'' and struck 
out reference to Puerto Rico in cl. (1), and substituted ``subsection 
(f) of this section'' for ``subsection (e) of this section'' in cl. (2).
    Subsecs. (b)(1), (2), (c). Pub. L. 96-374, Sec. 1391(a)(1), 
substituted ``Secretary'' for ``Commissioner''.
    Subsec. (d). Pub. L. 96-374, Secs. 432(4), 433, designated existing 
provisions as par. (1), inserted ``except that the Secretary shall give 
preference for the first 50 per centum of such reallotments to eligible 
institutions for use for initiating, improving, and expanding programs 
of cooperative education in accordance with title VIII of this Act'' 
after ``this Act'' and ``second'' after ``until the close of the'' and 
substituted ``Secretary'' for ``Commissioner'', and added par. (2).
    Subsec. (e). Pub. L. 96-374, Sec. 432(5), struck out reference to 
Puerto Rico.
    Subsec. (f). Pub. L. 96-374, Sec. 1391(a)(1), substituted 
``Secretary'' for ``Commissioner''.
    1972--Subsec. (a). Pub. L. 92-318, Sec. 135B(a)(2), substituted 
``Ninety per centum of the remainder'' for ``The remainder''.
    Subsecs. (c) to (f). Pub. L. 92-318, Sec. 135B(a)(2), added subsec. 
(c) and redesignated former subsecs. (c) to (e) as (d) to (f), 
respectively.
    1968--Subsec. (a). Pub. L. 90-575, Secs. 131(b)(3), 135(a), struck 
out reference to reservation of an amount needed for making grants under 
section 2753 of this title and inserted reference to reservation of 
amount provided by subsec. (e).
    Subsec. (c). Pub. L. 90-575, Sec. 133(a), substituted ``eligible 
institution'' for ``institution of higher education''.
    Subsec. (e). Pub. L. 90-575, Sec. 135(b), added subsec. (e).


                    Effective Date of 1998 Amendment

    Pub. L. 105-244, title IV, Sec. 442(c), Oct. 7, 1998, 112 Stat. 
1712, provided that: ``The amendments made by this section [amending 
this section] shall apply with respect to allocations of amounts 
appropriated pursuant to section 441(b) for fiscal year 2000 or any 
succeeding fiscal year.''


                    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 Title 20, Education.


                    Effective Date of 1992 Amendment

    Amendment by 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 Title 20, 
Education.


                    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 Title 20, 
Education.


                    Effective Date of 1986 Amendment

    Section 403(b)(1) of Pub. L. 99-498, as enacted by Pub. L. 100-50, 
Sec. 22(c), June 3, 1987, 101 Stat. 361, provided that: ``Section 442 of 
the Act [this section] shall apply with respect to the allocation of 
funds for academic year 1988-1989 and succeeding academic years.''


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-374 effective Oct. 1, 1980, see section 
1393(a) of Pub. L. 96-374, set out as a note under section 1001 of Title 
20, Education.


         College Work-Study Allotment for Specific Fiscal Years

    Pub. L. 98-8, title I, Sec. 100, Mar. 24, 1983, 97 Stat. 27, 
provided that notwithstanding subsecs. (a), (b), (c), and (e) of this 
section and section 11 of Public Law 97-301, set out as a note below, 
the Secretary should allot the sums appropriated pursuant to section 
2751(b) of this title for fiscal year 1983 among the States so that each 
State's allotment bore the same ratio to the total amount appropriated 
as that State's allotment in fiscal year 1981 bore to the total amount 
appropriated pursuant to that section for fiscal year 1981.
    Pub. L. 97-301, Sec. 11, Oct. 13, 1982, 96 Stat. 1403, which 
provided that notwithstanding subsecs. (a), (b), (c), and (e) of this 
section, if in fiscal year 1983, fiscal year 1984, or fiscal year 1985 
the sums appropriated pursuant to section 2751(b) of this title were 
less than the sums appropriated pursuant to such section for the fiscal 
year 1981, the Secretary should allot the sums appropriated pursuant to 
that section for such fiscal year among the States so that each State's 
allotment bore the same ratio to the total amount appropriated as that 
State's allotment in fiscal year 1981 bore to the total amount 
appropriated pursuant to that section for fiscal year 1981 was repealed 
by Pub. L. 99-498, title IV, Sec. 408(b), Oct. 17, 1986, 100 Stat. 1495, 
eff. with respect to any academic year beginning on or after July 1, 
1988.

                  Section Referred to in Other Sections

    This section is referred to in section 2756 of this title; title 20 
sections 1089, 1095.
