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National Service – Volume 1 – 20 USC, Chapter 28, Higher Education [binder]
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National Service – Volume 1 – 20 USC, Chapter 28, Higher Education [binder]
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Records of the Office of National Service (Clinton Administration)
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This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
National Service
Series/Staff Member:
Rick Allen
Subseries:
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1292
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National Service - Volume 1 - 20 USC, Chapter 28, Higher Education [binder]
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Clinton Presidential Records
Digital Records Marker
This is not a presidential record. This is used as an administrative
marker by the William J. Clinton Presidential Library Staff.
This marker identifies the place of a tabbed divider. Given our
digitization capabilities, we are sometimes unable to adequately
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indicated below.
20 Higher Educ Ch
28
Divider Title:
20 1091
HIGHER EDUCATION Ch. 28
Ch. 28 STUDENT ASSISTANCE
§ 1091
required under paragraph (2)(A) is presented but such docu-
(C) Not later than 45 days after the date of an individu-
mentation is not verified under paragraph (3)-
al's request for a hearing, the official will notify the individ-
ual in writing of the official's decision on the appeal of the
(A) the institution-
determination.
(i) shall provide a reasonable opportunity to submit
to the institution evidence indicating a satisfactory
(i) Limitations of enforcement actions against Institutions
immigration status, and
The Secretary shall not take any compliance, disallowance, penal-
(ii) may not delay, deny, reduce, or terminate the
ty, or other regulatory action against an institution of higher edu-
individual's eligibility for the grant, loan, or work as-
cation with respect to any error in the institution's determination to
sistance on the basis of the individual's immigration
make a student eligible for a grant, loan, or work assistance based
status until such a reasonable opportunity has been
on citizenship or immigration status-
provided; and
(1) if the institution has provided such eligibility based on a
(B) if there are submitted documents which the institu-
verification of satisfactory immigration status by the Immigra-
tion determines constitutes reasonable evidence indicating
tion and Naturalization Service,
such status-
(2) because the institution, under subsection (h)(4)(A)(ii) of
(i) the institution shall transmit to the Immigration
and Naturalization Service photostatic or other similar
this section, was required to provide a reasonable opportunity
to submit documentation,
copies of such documents for official verification,
(ii) pending such verification, the institution may
(3) because the institution, under subsection (h)(4)(B)(ii) of
not delay, deny, reduce, or terminate the individual's
this section, was required to wait for the response of the
eligibility for the grant, loan, or work assistance on the
Immigration and Naturalization Service to the institution's re-
basis of the individual's immigration status, and
quest for official verification of the immigration status cf the
(iii) the institution shall not be liable for the conse-
student, or
quences of any action, delay, or failure of the Service
(4) because of a fair hearing process described in subsection
to conduct such verification.
(h)(5)(B) of this section.
(5) If the institution determines, after complying with the
(j) Validity of loan guarantees for loan payments made before Immigration
requirements of paragraph (4), that such an individual is not in
status verification completed
a satisfactory immigration status-
(A) the institution shall deny or terminate the individu-
Notwithstanding subsection (h) of this section, if-
al's eligibility for such grant, loan, or work assistance, and
(1) a guaranty is made under this subchapter and part c of
(B) the fair hearing process (which includes, at a mini-
subchapter I of chapter 34 of Title 42 for a loan made with
mum, the requirements of paragraph (6)) shall be made
respect to an individual,
available with respect to the individual.
(2) at the time the guaranty is entered into, the provisions of
(6) The minimal requirements of this paragraph for a fair
subsection (h) of this section had been complied with,
hearing process are as follows:
(3) amounts are paid under the loan subject to such guaran-
(A) The institution provides the individual concerned
ty, and
with written notice of the determination described in para-
(4) there is a subsequent determination that, because of an
graph (5) and of the opportunity for a hearing respecting
unsatisfactory immigration status, the individual is not eligible
the determination.
for the loan,
(B) Upon timely request by the individual, the institution
provides a hearing before an official of the institution at
the official of the institution making the determination shall notify
which the individual can produce evidence of a satisfactory
and instruct the entity making the loan to cease further payments
under the loan, but such guaranty shall not be voided or otherwise
immigration status.
445
444
Ch. 28 STUDENT ASSISTANCE
1
20 s 1091
HIGHER EDUCATION Ch. 28
Subsec. (d). Pub.L. 99-603 added sub-
section shall apply only to student assist-
nullified with respect to such payments made before the date the
sec. (d) limiting enforcement actions
ance awarded for periods of enrollment
against institutions.
beginning on or after July 1, 1987, to
entity receives the notice.
Subsec. (e). Pub.L. 99-603 added sub-
individuals who were not awarded such
(Pub.L. 98-329, Title IV, § 484, as added Pub.L. 99-498, Title IV, § 407(a),
sec. (e) relating to validity of loan guar-
assistance for any preceding period of
Oct. 17, 1986, 100 Stat. 1479, and amended Pub.L. 99-603, Title I,
antees for loan payments made before
enrollment.
§ 121(a)(3), Nov. 6, 1986, 100 Stat. 3388; Pub.L. 100-50, § 15(7)-(9), June
completion of immigration status verifi-
"(4) Sections 484(f), 485(b), and
3, 1987, 101 Stat. 356, 357; Pub.L. 100-369, §§ 1, 2, 6, July 18, 1988, 102
cation.
487(a)(10) of the Act [subsec. (f) of this
Stat. 835, 836; Pub.L. 100-525, § 2(g), Oct. 24, 1988, 102 Stat. 2611.)
Effective Dates
section and sections 1092(b) and
1988 Acts. Amendment by Pub.L.
1094(a)(10) of this title] as amended by
HISTORICAL AND STATUTORY NOTES
100-525 effective as if included in enact-
this section shall apply only to periods of
ment of Immigration Reform and Con-
enrollment beginning on or after July 1,
Revision Notes and Legislative Reports
tuted "the date the entity receives" for
trol Act of 1986, Pub.L. 99-603, see sec-
1987."
1986 Act. House Reports Nos. 99-383,
"the date of the entity receives".
tion 2(s) of Pub.L. 100-525, set out as a
99-598, House Conference Report No.
1987 Amendment. Subsec. (a)(1).
note under section 1101 of Title 8, Aliens
Prior Provisions
99-861, and Statement by President, see
Pub.L. 100-50, § 15(7)(A), inserted ex-
and Nationality.
A prior section 1091, Pub.L. 89-329,
1986 U.S.Code Cong. and Adm.News, p.
cept as provided in subsection (b)(2) of
Amendment by sections 1 and 2 of
Title IV, § 484, as added Pub.L. 96-374,
2572.
this section" after "of this title".
Pub.L. 100-369 effective for any loan for
Title IV, § 451(a), Oct. 3, 1980, 94 Stat.
1987 Act. House Report No. 100-44,
Subsec.
(b).
Pub.L.
100-50,
which eligibility of borrower is certified
1448, and amended Pub.L. 99-272, Title
see 1987 U.S.Code Cong. and Adm.News,
by institution 30 days after July 18, 1988,
XVI, § 16032(a), (b), Apr. 7, 1986, 100
§ 15(7)(B)-(D), designed existing provi-
p. 339.
sion as par. (1), and in par. (1) as so
and amendment by section 6 of Pub.L.
Stat. 354, also related to student eligibili-
1988 Act. House Report No. 100-669,
designated, redesignated pars. (1) and
100-369 effective July 18, 1988, see sec-
ty, with provisions covering eligibility
see 1988 U.S.Code Cong. and Adm.News,
tion 13(a), (b)(2) of Pub.L. 100-369, set
requirements and special application to
(2) as subpars. (A) and (B), respectively,
p. 1070.
out as a note under section 1078-1 of
permanent residents of the Trust Territo-
and added par. (2).
this title.
ry of the Pacific Islands and Northern
Subsec.
Amendments
(d). Pub.L.
100-50,
Mariana Islands, prior to the general re-
§ 15(8)(B), following numbered pars.,
1987 Act. Amendment by Pub.L.
1988 Amendments. Subsec. (a)(1).
inserted provision that in order to be
100-50 effective as if enacted as part of
vision of this part by Pub.L. 99-498.
Pub.L. 100-369, § 6(1), substituted "sub-
eligible for assistance a student cannot
the Higher Education Amendments of
Another prior section 1091, Pub.L.
sections (b)(3) and (b)(4)" for "subsec-
be enrolled in either an elementary or
1986, Pub.L. 99-498, see section 27 of
89-329, Title V, § 501, Nov. 8, 1965, 79
tion (b)(2)".
secondary school.
Pub.L. 100-50, set out as a note under
Stat. 1254; Pub.L. 90-35, § 2(c), June 29,
Subsec. (b)(1). Pub.L. 100-369,
section 1001 of this title.
1967, 81 Stat. 82; Pub.L. 92-318, Title I,
Subsec. (d)(1). Pub.L. 100-50,
§ 1(1), substituted "section 1078-2 or
§ 15(8)(A)(i), struck out "or" after "earli-
1986 Acts. Amendment by Pub.L.
§ 141(b)(1), June 23, 1972, 86 Stat. 285,
1078-3" for "section 1078-1, 1078-2, or
99-603 effective Oct. 1, 1988, with cer-
setting out the Congressional statement
1978-3".
er;".
tain exceptions and qualifications, see
of purpose and authorization of appro-
Subsec. (b)(1)(A). Pub.L. 100-369,
Subsec. (d)(2). Pub.L. 100-50,
section 121(c)(3), (4) of Pub.L. 99-603,
priations for education professions de-
§ 1(2), substituted "(A)(i)" for "(A)",
§ 15(8)(A)(ii), added par. (2) and redes-
set out as a note under section 1320b-7
velopment program, was repealed effec-
"Pell Grant" for "grant", struck out "or"
ignated former par. (2) as (3).
of Title 42, The Public Health and Wel-
tive Sept. 30, 1976, by Pub.L. 94-482,
fare.
Title I, § 151(a)(2), Oct. 12, 1976, 90 Stat.
following "period of enrollment;", and
Subsec. (d)(3). Pub.L. 100-50,
added subcl. (ii).
§ 15(8)(A)(ii), redesignated par. (2) as
Section effective Oct. 17, 1986, except
2151.
(3), and in par. (3)(A) as so redesignated,
as otherwise provided, see section 2 of
Subsec. (b)(2). Pub.L. 100-369, § 2,
struck out "be counseled prior to admis-
Pub.L. 99-498, set out as a note under
Denial of Student Assistance to Certain
added par. (2). Former par. (2) was
Noncitizens
sions or" before "be administered" and
section 1001 of this title.
redesignated (3).
Section 1361 of Pub.L. 99-498 provid-
substituted "recognized, standardized,"
Section 407(b) of Pub.L. 99-498 pro-
ed that:
Subsec. (b)(3). Pub.L. 100-369,
for "recognized standardized", and in
vided that:
§ 2(1), redesignated former par. (2) as
par. (3)(B) as so redesignated, inserted
"(1) Sections 483(e) and 484(d) of the
"(a) Establishment of Panel.-(1)
(3).
"and successfully complete" before "an
Act [subsec. (d) of this section and sec-
There is established in the Department
Subsec. (b)(4). Pub.L. 100-369,
institutionally" and substituted "develop-
tion 1090(e) of this title] as amended by
of Education a panel to be known as the
§ 6(2), added par. (4).
ment education not" for "development
this section shall apply to student assist-
'Alien Youth Education Opportunity Pan-
education, not".
Subsecs. (c) to (e), (h) to (j). Pub.L.
ance awarded for periods of enrollment
el' (hereinafter in this section referred to
100-525, redesignated the additional
Subsec. (f). Pub.L. 100-50, § 15(9),
beginning on or after July 1, 1987.
as the 'Panel').
subsecs. (c) to (e) enacted by Pub.L.
inserted provision that in carrying out
"(2) The changes made in section
"(2) The Panel shall be composed of 7
99-603 as (h) to (j), respectively, in sub-
provisions of this subsection no eligible
484(a)(1) of the Act [subsec. (a)(1) of this
members, 3 of whom shall be appointed
secs. (h) to (j), as so redesignated, added
institution be required to verify more
section] shall apply to student assistance
by the Secretary, 2 of whom shall be
subsection headings and substituted ref-
than 30 percent of such applications in
awarded for periods of enrollment be-
appointed by the Speaker of the House
erences to subsec. (h) for references to
any award year.
ginning on or after July 1, 1987.
of Representatives, and 2 of whom shall
subsec. (c) wherever appearing, and in
1986 Amendment. Subsec. (c).
"(3) Section 484(c) of the Act [subsec.
be appointed by the Majority Leader of
subsec. (j), as so redesignated, in provi-
Pub.L. 99-603 added subsec. (c) requir-
(c) of this section] as amended by this
the Senate.
sions following numbered pars., substi-
ing immigration status verification.
447
446
20
$
HIGHER EDUCATION Ch. 28
Ch. 28 STUDENT ASSISTANCE
20
"(b) Dutles of Panel.-The Panel shall
cy, board, commission, office, indepen-
Perkins loan program, see 34 C.F.R. § 674.1 et seq.
study and investigate the extent to which
dent establishment, or instrumentality
Student assistance generally, see 34 C.F.R. § 668.1 et seq.
the requirements of section 484(a)(5) of
information, suggestions, estimates, and
Supplemental educational opportunity grant program, see 34 C.F.R. § 676.1 et
the Act [subsec. (a)(5) of this section]
statistics for the purpose of this section
seq.
result in the denial of student assistance
and each such department, bureau, agen-
American Digest System
to long-term residents of the United
cy, board, commission, office, indepen-
Financial aid to students, see Colleges and Universities 9.25(1).
States who have graduated from United
dent establishment, or instrumentality is
Loans and loan guarantees or insurance, see Colleges and Universities 9.25(2).
States high schools and the extent to
authorized and directed, to the extent
Encyclopedias
which that denial deprives those individ-
permitted by law, to furnish such infor-
Financial aid to students, see C.J.S. Colleges and Universities § 28.
uals of an equal educational opportuni-
mation, suggestions, estimates, and sta-
Loans and loan guarantees or insurance, see C.J.S. Colleges and Universities
ty.
tistics directly to the Panel."
§ 28.
"(c) Report and recommendations.-
The Panel shall submit a report of its
Financial Aid to Students Not Deemed
WESTLAW ELECTRONIC RESEARCH
findings and recommendations to the
Income or Resources for Purposes of
Secretary, the President, and the Con-
Certain Social Security Act Programs
Colleges and universities cases: 81k[add key number].
gress not later than 2 years after the date
Pub.L. 90-575, Title V, § 507, Oct. 16,
See WESTLAW guide following the Explanation pages of this volume.
of enactment of this section [Oct. 17,
1968, 82 Stat. 1063, as amended by
1986].
Pub.L. 96-88, Title III, § 301(a)(1), Oct.
"(d) Administrative and clerical sup-
17, 1979, 93 Stat. 677, provided that:
§ 1091a. Statute of limitations
port.-The Secretary shall provide the
"For the purpose of any program assist-
Panel with such administrative and cleri-
ed under Title I, IV, X, XIV, XVI, or XIX
of the Social Security Act [subchapters I,
(a) In general
cal support as it may require to carry
out its activities under this section.
IV, X, XIV, XVI, or XIX of chapter 7 of
Notwithstanding any provision of State law that would set an
Title 42, The Public Health and Welfare],
"(e) Compensation and expenses.-
(1) Members of the Panel who are offi-
no grant or loan to any undergraduate
earlier deadline for filing suit-
student for educational purposes made
(1) an institution which receives funds under this subchapter
cers or full-time employees of the United
or insured under any program adminis-
States shall serve without compensation
and part c of subchapter I of chapter 34 of Title 42 may file suit
in addition to that received for their
tered by the Secretary of Education shall
be considered to be income or re-
for collection of a refund due from a student on a grant made
services as officers or employees of the
sources."
or work assistance awarded under this subchapter and part C of
United States; but they may be allowed
travel expenses, including per diem in
subchapter I of chapter 34 of Title 42 during a period of time
Satisfactory Progress
lieu of subsistence, as authorized by sec-
Section 1301 of Pub.L. 99-498, as
extending at least until a date 6 years (exclusive of periods
tion 5703 of title 5, United States Code
amended Pub.L. 100-50, § 23(1), June 3,
during which the State statute of limitations period otherwise
[section 5703 of Title 5, Government Or-
1987, 101 Stat. 362, provided that: "The
ganization and Employees], for persons
Secretary, through the Office of Edu-
applicable to the suit would be tolled under State law) after the
in the Government service employed in-
cational Research and Improvement,
date the refund first became due;
termittently.
shall conduct a survey on the impact, if
(2) a guaranty agency which has an agreement with the
"(2) Members of the Panel who are
any, on grades of students of the amend-
not officers or full-time employees of the
ments made by this Act to section 484(c)
Secretary under section 1078(c) of this title may file suit for
United States may each receive reim-
of the Act [subsec. (c) of this section].
collection of the amount due from a borrower on a loan made
bursement for travel expenses incident
The study required by this subsection
under part B of this subchapter during a period of time extend-
to attending Panel meetings, including
shall be conducted over the 5-year peri-
per diem in lieu of subsistence, as autho-
od ending September 30, 1991. The Sec-
ing at least until a date 6 years (exclusive of periods during
rized by section 5703 of Title 5, United
retary, after the end of each year of the
which the State statute of limitations period otherwise applica-
States Code, for persons in the Govern-
study, shall submit to the Congress a
ble to the suit would be tolled under State law) after the date
ment service employed intermittently.
report of the survey required by this
"(f) Access to Information.-The Pan-
subsection, together with such recom-
such guaranty agency reimburses the previous holder of the
el is authorized to secure directly from
mendations as the Secretary deems ap-
loan for its loss on account of the default of the borrower;
any executive department, bureau, agen-
propriate."
(3) an institution which has an agreement with the Secretary
CROSS REFERENCES
pursuant to section 1087cc(a) of this title may file suit for
collection of the amount due from a borrower on a loan made
Contents of agreements to make grants for work-study programs, see 42 USCA
§ 2753.
under part D of this subchapter during a period of time extend-
ing at least until a date 6 years (exclusive of periods during
LIBRARY REFERENCES
which the State statute of limitations period otherwise applica-
Administrative Law
ble to the suit would be tolled under State law) after the date of
Guaranteed student loan program, see 34 C.F.R. § 682.100 et seq.
Pell Grant Program, see 34 C.F.R. § 690.1 et seq.
the default of the borrower with respect to that amount; and
448
449
Ch. 28 STUDENT ASSISTANCE
26
a
20 § 109Ta
HIGHER EDUCATION
Ch.
28
Note 3
Section 1091b, Pub.L. 89-329, Title V,
Section 1091d, Pub.L. 89-329, Title V,
(4) subject to the provisions of section 2416 of Title 28, the
§ 503, as added Pub.L. 90-35, § 2(c),
§ 505, as added Pub.L. 90-35, § 2(c),
Attorney General may file suit-
June 29, 1967, 81 Stat. 83, and amended
June 29, 1967, 81 Stat. 84, required the
Pub.L. 92-318, Title IV, § 451(a), June
Commissioner to consult with the Na-
(A) for payment of a refund due from a student on a
23, 1972, 86 Stat. 344, authorized the
tional Science Foundation and the Na-
grant made under this subchapter and part c of subchapter
Commissioner to appraise and annually
tional Foundation on the Arts and the
report on existing and future education
Humanities in development and review
I of chapter 34 of Title 42 until 6 years following the date
personnel needs.
of programs.
on which the refund first became due;
Section 1091c, Pub.L. 89-329, Title V,
Section 1091e, Pub.L. 89-329, Title V,
(B) for collection of the amount due the Secretary from
§ 504, as added Pub.L. 90-35, § 2(c),
§ 506, as added Pub.L. 90-35, § 2(c),
a borrower pursuant to section 1078(c)(2)(D) and (c)(8) of
June 29, 1967, 81 Stat. 83, and amended
June 29, 1967, 81 Stat. 84, authorized the
Pub.L. 90-575, Title II, § 231(a), Oct. 16,
transfer of funds for programs for edu-
this title until 6 years following the date on which the loan
1968, 82 Stat. 1039; Pub.L. 92-318, Title
cation professions development.
is assigned to the Secretary under part B of this subchapter;
I, § 141(a)(1)(B), (c)(1)(B), June 23,
Section 1091f, Pub.L. 89-329, Title V,
and
1972, 86 Stat. 284, 285, authorized the
§ 507, as added Pub.L. 90-35, § 2(c),
Commissioner to make grants or con-
June 29, 1967, 81 Stat. 84, authorized the
(C) for collection of the amount due from a borrower on
tracts with State or local educational
employment of experts and consultants
a loan made under part D until 6 years following the date
agencies for attracting qualified persons
and set forth provisions for compensa-
on which the loan is assigned, transferred, or referred to
to the field of education.
tion and travel expenses.
the Secretary under part D of this subchapter.
LIBRARY REFERENCES
(b) Assessment of costs and other charges
American Digest System
Actions by educational institutions, see Colleges and Universities 10.
Notwithstanding any provision of State law to the contrary-
Financial aid to students, see Colleges and Universities 9.25(1).
(1) a borrower who has defaulted on a loan made under this
Limitation of actions by and against United States, see United States 133.
subchapter and part c of subchapter I of chapter 34 of Title 42
Loans and loan guarantees or insurance, see Colleges and Universities 9.25(2).
shall be required to pay, in addition to other charges specified
Encyclopedias Actions by educational institutions, see C.J.S. Colleges and Universities §§ 37 to
in this subchapter and part c of subchapter I of chapter 34 of
44.
Financial aid to students, see C.J.S. Colleges and Universities § 28.
Title 42, reasonable collection costs; and
Limitation of actions by and against United States, see C.J.S. United States § 192.
(2) in collecting any obligation arising from a loan made
Loans and loan guarantees or insurance, see C.J.S. Colleges and Universities
under part B of this subchapter, a guaranty agency or the
§ 28.
Secretary shall not be subject to a defense raised by any
WESTLAW ELECTRONIC RESEARCH
borrower based on a claim of infancy.
Colleges and universities cases: 81k[add key number].
(Pub.L. 89-329, Title IV, § 484A, as added Pub.L. 99-498, Title IV, § 407(a),
United States cases: 393k[add key number].
Oct. 17, 1986, 100 Stat. 1482.)
See WESTLAW guide following the Explanation pages of this volume.
HISTORICAL AND STATUTORY NOTES
NOTES OF DECISIONS
Revision Notes and Legislative Reports
infancy, prior to the general revision of
Counterclaims 2
2. Counterclaims
1986 Act. House Reports Nos. 99-383,
this part by Pub.L. 99-498.
Law governing 1
Six-year limitation period on suits
99-598, House Conference Report No.
Transfer to Secretary 3
filed to collect default of loans applied to
Prior sections 1091a to 1091f were re-
99-861, and Statement by President, see
pealed, effective Sept. 30, 1976, by
government's counterclaim, in suit by
1986 U.S.Code Cong. and Adm.News, p.
debtor seeking refund after IRS offset
Pub.L. 94-482, Title I, § 151(a)(2), (b),
student loan debt against debtor's in-
2572.
Oct. 12, 1976, 90 Stat. 2151.
1. Law governing
come tax refund, even if statute allowing
Effective Dates
Section 1091a, Pub.L. 89-329, Title V,
Statute establishing federal statute of
government to file counterclaim if ac-
1986 Act. Section effective Oct. 17,
§ 502, as added Pub.L. 90-35, § 2(c),
limitations for student loan debts, by
tion giving rise to counterclaim arises
1986, see section 2 of Pub.L. 99-498, set
June 29, 1967, 81 Stat. 82, and amended
creating federal limitation period for
out of same transaction or occurrence is
out as a note under section 1001 of this
Pub.L. 91-230, Title IV, § 401(h)(4), Title
collection of defaulted national defense
not stated in original complaint did ap-
title.
VIII, § 802, Apr. 13, 1970, 84 Stat. 174,
student loans commencing on date on
ply, and thus, counterclaim was time
Prior Provisions
190; Pub.L. 92-318, Title I,
which Secretary of Education accepts as-
barred. Hurst v. U.S. Dept. of Educ.,
A prior section 1091a, Pub.L. 89-329,
§ 141(c)(1)(A), June 23, 1972, 86 Stat.
signment of loan applies notwithstand-
D.Kan.1988, 695 F.Supp. 1137.
Title IV, § 484A, as added Pub.L. 99-272,
285, established the National Advisory
ing any provision of state law setting
3. Transfer to Secretary
Title XVI, § 16033, Apr. 7, 1986, 100
Council on Education Professions Devel-
earlier deadline for filing suit. U.S. v.
Department of Education's action to
Stat. 355, related to the statute of limita-
opment and set forth functions, compo-
Hunter, M.D.Fla.1988, 700 F.Supp. 26.
collect on student loan was timely filed
tions, collection costs, and the defense of
sition, etc., of the Council.
451
450
20
HIGHER EDUCATION Ch. 28
Ch. 28 STUDENT ASSISTANCE
92
Note 3
within six years after date loans were
limitations for contract actions had ex-
person so designated may be contacted by students and pro-
assigned to Department by university,
pired. U.S. v. Zue, D.Vt.1988, 704
spective students who are seeking information required by this
despite fact that four-year state statute of
F.Supp. 535.
subsection;
(I) special facilities and services available to handicapped
§ 1092. Institutional and financial assistance information for
students;
students
(J) the names of associations, agencies, or governmental bod-
(a) Information dissemination activities
ies which accredit, approve, or license the institution and its
(1) Each eligible institution participating in any program under
programs, and the procedures under which any current or
this subchapter and part c of subchapter I of chapter 34 of Title 42
prospective student may obtain or review upon request a copy
of the documents describing the institution's accreditation, ap-
shall carry out information dissemination activities for prospective
and enrolled students (including those attending or planning to
proval, or licensing; and
attend less than full time) regarding the institution and all financial
(K) the standards which the student must maintain in order
assistance under this subchapter and part c of subchapter I of
to be considered to be making satisfactory progress, pursuant
chapter 34 of Title 42. The information required by this section
to section 1091(a)(2) of this title.
shall be produced and be made readily available, through appropri-
(2) For the purpose of this section, the term "prospective student"
ate publications and mailings, to all current students, and to any
means any individual who has contacted an eligible institution
prospective student upon request. The information required by this
requesting information concerning admission to that institution.
section shall accurately describe-
(b) Exit counseling for borrowers
(A) the student financial assistance programs available to
Each eligible institution shall, through financial aid officers or
students who enroll at such institution;
otherwise, make available counseling to borrowers (individually or
(B) the methods by which such assistance is distributed
in groups) of loans which are made, insured, or guaranteed under
among student recipients who enroll at such institution;
part B of this subchapter (other than loans made pursuant to
(C) any means, including forms, by which application for
section 1078-2 of this title) or made under part D of this subchapter
student financial assistance is made and requirements for accu-
prior to the completion of the course of study for which the
rately preparing such application;
borrower enrolled at the institution or at the time of departure
(D) the rights and responsibilities of students receiving finan-
from such institution. The counseling required by this subsection
cial assistance under this subchapter and part c of subchapter I
shall include-
of chapter 34 of Title 42;
(1) general information with respect to the average indebted-
(E) the cost of attending the institution, including (i) tuition
ness of students who have loans under part B or part D of this
and fees, (ii) books and supplies, (iii) estimates of typical
subchapter; and
student room and board costs or typical commuting costs, and
(2) the average anticipated monthly repayments, a review of
(iv) any additional cost of the program in which the student is
the repayment options available, together with such debt and
enrolled or expresses a specific interest;
management strategies as the institution determines are de-
(F) a statement of the refund policy of the institution for the
signed to facilitate the repayment of such indebtedness.
return of unearned tuition and fees or other refundable portion
In the case of a borrower who leaves an institution without the
of cost, as described in subparagraph (E) of this paragraph;
prior knowledge of the institution, the institution shall attempt to
(G) the academic program of the institution, including (i) the
provide the information to the student in writing.
current degree programs and other educational and training
programs, (ii) the instructional, laboratory, and other physical
(c) Financial assistance information personnel
plant facilities which relate to the academic program, and (iii)
Each eligible institution shall designate an employee or group of
the faculty and other instructional personnel;
employees who shall be available on a full-time basis to assist
(H) each person designated under subsection (c) of this sec-
students or potential students in obtaining information as specified
tion, and the methods by which and locations in which any
in subsection (a) of this section. The Secretary may, by regulation,
453
452
20 § 1092
HIGHER EDUCATION Ch. 28
Ch. 28 STUDENT ASSISTANCE
20 $ 1092a
waive the requirement that an employee or employees be available
cluding differences in deferment eligibil-
407(b) of Pub.L. 99-498, set out as a note
on a full-time basis for carrying out responsibilities required under
ity, interest rates, monthly payments,
under section 1091 of this title.
and finance charges, and samples of
this section whenever an institution in which the total enrollment,
loan consolidation profiles to illustrate
Prior Provisions
or the portion of the enrollment participating in programs under
such consequences.
A prior section 1092, Pub.L. 89-329,
Title IV, § 485, as added Pub.L. 96-374,
this subchapter and part c of subchapter I of chapter 34 of Title 42
Effective Dates
Title IV, § 451(a), Oct. 3, 1980, 94 Stat.
at that institution, is too small to necessitate such employee or
1987 Act. Amendment by Pub.L.
1449, related to institutional and finan-
100-50 effective as if enacted as part of
cial assistance information for students,
employees being available on a full-time basis. No such waiver
the Higher Education Amendments of
prior to the general revision of this part
may include permission to exempt any such institution from desig-
1986, Pub.L. 99-498, see section 27 of
by Pub.L. 99-498.
nating a specific individual or a group of individuals to carry out
Pub.L. 100-50, set out as a note under
Another prior section 1092, Pub.L.
section 1001 of this title.
the provisions of this section.
89-329, Title V, § 508, formerly § 502,
1986 Act. Section effective Oct. 17,
Nov. 8, 1965, 79 Stat. 1255, renumbered
(d) Departmental publication of descriptions of assistance programs
1986, except as otherwise provided, see
and amended Pub.L. 90-35, §§ 2(b), 7,
section 2 of Pub.L. 99-498, set out as a
June 29, 1967, 81 Stat. 82, 93, prohibiting
The Secretary shall make available to eligible institutions, eligible
note under section 1001 of this title.
the making of payments for religious
lenders, and secondary schools descriptions of Federal student
Subsec. (b) of this section applicable
purposes for authorized programs, was
only to periods of enrollment beginning
repealed by Pub.L. 94-482, Title I,
assistance programs including the rights and responsibilities of
on or after July 1, 1987, see section
§ 151(a)(2), Oct. 12, 1976, 90 Stat. 2151.
student and institutional participants, in order to (1) assist students
in gaining information through institutional sources, and (2) assist
LIBRARY REFERENCES
institutions in carrying out the provisions of this section, so that
Administrative Law
individual and institutional participants will be fully aware of their
Student assistance generally, see 34 C.F.R. § 668.1 et seq.
rights and responsibilities under such programs. In particular,
WESTLAW ELECTRONIC RESEARCH
such information shall include information to enable students and
prospective students to assess the debt burden and monthly and
See WESTLAW guide following the Explanation pages of this volume.
total repayment obligations that will be incurred as a result of
receiving loans of varying amounts under this subchapter and part
§ 1092a. Combined payment plan
c of subchapter I of chapter 34 of Title 42. In addition, such
information shall include information to enable borrowers to assess
(a) Eligibility for plan
the practical consequences of loan consolidation, including differ-
Upon the request of the borrower, a lender described in subpara-
ences in deferment eligibility, interest rates, monthly payments, and
graph (A), (B), or (C) of section 1078-3(a)(1) of this title, or defined
finance charges, and samples of loan consolidation profiles to
in subpart I of part c of Title VII of the Public Health Service Act
illustrate such consequences. Such information shall be provided
[42 U.S.C.A. § 294 et seq.] may, with respect to a consolidation loan
by eligible institutions and eligible lenders at any time that informa-
made under section 1078-3 of this title (and section 1087-2(o) of
tion regarding loan availability is provided to any student.
this title as in effect prior to the enactment of section 1078-3 of this
(Pub. L. 89-329, Title IV, § 485, as added Pub.L. 99-498, Title IV, § 407(a),
title) and loans guaranteed under subpart I of part c of Title VII of
Oct. 17, 1986, 100 Stat. 1482, and amended Pub.L. 100-50, § 15(10), (11),
the Public Health Service Act (known as Health Education Assist-
June 3, 1987, 101 Stat. 357.)
ance Loans), offer a combined payment plan under which the
lender shall submit one bill to the borrower for the repayment of all
HISTORICAL AND STATUTORY NOTES
such loans for the monthly or other similar period of repayment.
Revision Notes and Legislative Reports
Amendments
1986 Act. House Reports Nos. 99-383,
1987 Amendment. Subsec. (b).
(b) Applicability of other requirements
99-598, House Conference Report No.
Pub.L. 100-500, § 15(10), inserted "(oth-
99-861, and Statement by President, see
er than loans made pursuant to section
A lender offering a combined payment plan shall comply with all
1078-2 of this title)" after "part B of this
1986 U.S.Code Cong. and Adm.News, p.
provisions of section 1078-3 of this title applicable to loans consol-
subchapter".
2572.
Subsec. (d). Pub.L. 100-50, § 15(11),
idated or to be consolidated and shall comply with all provisions of
1987 Act. House Report No. 100-44,
inserted provision that, in addition, such
subpart I of part c of Title VII of the Public Health Service Act [42
see 1987 U.S.Code Cong. and Adm.News,
information include information to en-
able borrowers to assess the practical
U.S.C.A. § 294 et seq.] applicable to loans under that subpart which
D. 339.
that
20 § 10928
HIGHER EDUCATION Ch. 28
Ch. 28 STUDENT ASSISTANCE
20
offering a combined payment plan under this section may offer
Health and Human Services shall insure such loan under a certifi-
consolidation loans pursuant to section 1078-3(b)(1)(A) of this title
cate of comprehensive insurance with no insurance limit, but any
if such lender holds any outstanding loan of a borrower which is
such certificate shall only be issued to an authorized holder of loans
selected for inclusion in a combined payment plan.
insured under subpart I of part C of Title VII of the Public Health
Service Act [42 U.S.C.A. § 294 et seq.] (including the Student Loan
(c) Lender eligibility
Marketing Association). Such certificates shall provide that all
Such lender may offer a combined payment plan only if-
loans reissued under this section shall be fully insured against loss
(1) the lender holds an outstanding loan of that borrower
of principal and interest. Any insurance issued with respect to
which is selected by the borrower for incorporation into a
loans reissued under this section shall be excluded from the limita-
combined payment plan pursuant to this section (including
tion on maximum insurance authority set forth in section 728(a) of
loans which are selected by the borrower for consolidation
the Public Health Service Act [42 U.S.C.A. § 294a(a)]. Notwith-
under this section); or
standing the provisions of section 729(a) of the Public Health
(2) the borrower certifies that the borrower has sought and
Service Act [42 U.S.C.A. § 294b(a)], the reissued loan shall be made
has been unable to obtain a combined payment plan from the
in an amount, including outstanding principal, capitalized interest,
holders of the outstanding loans of that borrower.
accrued unpaid interest not yet capitalized, and authorized late
(d) Borrower selection of competing offers
charges. The proceeds of each such loan will be paid by the lender
to the holder of the original loan being reissued and the borrower's
In the case of multiple offers by lenders to administer a combined
payment plan for a borrower, the borrower shall select from among
obligation to that holder on that loan shall be discharged.
them the lender to administer the combined payment plan includ-
(2) Except as otherwise specifically provided for under the provi-
ing its loan consolidation component.
sions of this section, the terms of any reissued loan shall be the
(e) Effect of plan
same as the terms of the original loan. The maximum repayment
Upon selection of a lender to administer the combined payment
period for a loan reissued under this section shall not exceed the
plan, the lender may reissue any Health Education Assistance Loan
remainder of the period which would have been permitted on the
selected by the borrower for incorporation in the combined pay-
original loan. If the lender holds more than one loan insured
ment plan which is not held by such lender and the proceeds of
under subpart I of part c of title VII of the Public Health Service
such reissued loan shall be paid by the lender to the holder or
Act [42 U.S.C.A. § 294 et seq.], the maximum repayment period for
holders of the loans so selected to discharge the liability on such
all such loans may extend to the latest date permitted for any
loans, if-
individual loan. Any reissued loan may be consolidated with any
(1) the lender selected to administer the combined payment
other Health Education Assistance Loan as provided in the Public
plan has determined to its satisfaction, in accordance with
Health Service Act [42 U.S.C.A. § 201 et seq.], and, with the concur-
reasonable and prudent business practices, for each loan being
rence of the borrower, repayment of any such loans during any
reissued (A) that the loan is a legal, valid, and binding obli-
period may be made in amounts that are less than the interest that
gation of the borrower; (B) that each such loan was made and
accrues on such loans during that period.
serviced in compliance with applicable laws and regulations;
and (C) the insurance on such loan is in full force and effect;
(g) Termination of borrower eligibility
and
The status of an individual as an eligible combined payment plan
(2) the loan being reissued was not in default (as defined in
borrower terminates upon receipt of a combined payment plan.
section 733(e)(3) of the Public Health Service Act [42 U.S.C.A.
§ 294f(e)(3)]) at the time the request for a combined payment
(h) Fees and premiums
plan is made.
No origination fee or insurance premium shall be charged to the
(f) Notes and insurance certificates
borrower on any combined payment plan, and no origination fee or
(1) Each loan reissued under subsection (e) of this section shall
insurance premium shall be payable by the lender to the Secretary
be evidenced by a note executed by the borrower. The Secretary of
of Health and Human Services.
457
456
Ch. 28 STUDENT ASSISTANCE
20
20 § 109za
HIGHER EDUCATION Ch. 28
(3) the guaranty agency responsible for the guarantee of the
(i) Commencement of repayment
loan;
Repayment of a combined payment plan shall commence within
(4) the institution of higher education or organization re-
60 days after the later of the date of acceptance of the lender's offer
sponsible for loans made under part E;
to administer a combined payment plan, the making of the consoli-
dation loan or the reissuance of any Health Education Assistance
(5) the eligible institution in which the student was enrolled
or accepted for enrollment at the time the loan was made, and
Loans pursuant to subsection (e) of this section.
any additional institutions attended by the borrower;
(Pub.L. 89-329, Title IV, § 485A, as added Pub.L. 99-498, Title IV, § 407(a),
Oct. 17, 1986, 100 Stat. 1484, and amended Pub.L. 100-50, § 15(12), June 3,
(6) the total amount of loans made to any borrower and the
1987, 101 Stat. 357.)
remaining balance of the loans;
(7) the lender, holder, and servicer of such loans;
HISTORICAL AND STATUTORY NOTES
(8) information concerning the date of any default on the
Revision Notes and Legislative Reports
cation of this Act to the Code, see Short
Title note set out under section 201 of
loan and the collection of the loan, including any information
1986 Act. House Reports Nos. 99-383,
99-598, House Conference Report No.
Title 42 and Tables.
concerning the repayment status of any defaulted loan on
99-861, and Statement by President, see
which the Secretary has made a payment pursuant to section
1986 U.S.Code Cong. and Adm.News, p.
Amendments
1987 Amendment. Subsec. (a).
1080(a) of this title or the guaranty agency has made a payment
2572.
1987 Act. House Report No. 100-44,
Pub.L. 100-50 substituted "subparagraph
to the previous holder of the loan;
see 1987 U.S.Code Cong. and Adm.News,
(A), (B), or (C)" for "clause (i), (ii), or
(9) information regarding any deferments or forbearance
(iii)".
p. 339.
granted on such loans; and
References in Text
Effective Dates
(10) the date of cancellation of the note upon completion of
The Public Health Service Act, re-
1987 Act. Amendment by Pub.L.
ferred to in subsecs. (a), (b), and (f), is
100-50 effective as if enacted as part of
repayment by the borrower of the loan or payment by the
Act July 1, 1944, c. 373, 58 Stat. 682, as
the Higher Education Amendments of
Secretary pursuant to section 1087 of this title.
amended, which is classified generally to
1986, Pub.L. 99-498, see section 27 of
chapter 6A (section 201 et seq.) of Title
Pub.L. 100-50, set out as a note under
(b) Additional Information
42, The Public Health and Welfare.
section 1001 of this title.
Subpart I of part C of Title VII of the
For the purposes of research and policy analysis, the proposal
Public Health Service Act is classified
1986 Act. Section effective Oct. 17,
shall also contain provisions for obtaining additional data concern-
generally to subpart I (section 294 et
1986, see section 2 of Pub.L. 99-498, set
seq.) of part C of subchapter V of chap-
out as a note under section 1001 of this
ing the characteristics of borrowers and the extent of student loan
ter 6A of Title 42. For complete classifi-
title.
indebtedness on a statistically valid sample of borrowers under part
B. Such data shall include-
WESTLAW ELECTRONIC RESEARCH
(1) information concerning the income level of the borrower
See WESTLAW guide following the Explanation pages of this volume.
and his family and the extent of the borrower's need for student
financial assistance, including loans;
§ 1092b. National student loan data system
(2) information concerning the type of institution attended
by the borrower and the year of the program of education for
which the loan was obtained;
(a) Development of the system
The Secretary shall consult with a representative group of guaran-
(3) information concerning other student financial assistance
ty agencies, eligible lenders, and eligible institutions to develop a
received by the borrower; and
mutually agreeable proposal for the establishment of a National
(4) information concerning Federal costs associated with the
Student Loan Data System containing information regarding loans
student loan program under part B of this subchapter, includ-
made, insured, or guaranteed under part B and loans made under
ing the costs of interest subsidies, special allowance payments,
and other subsidies.
part E. The information in the data system shall include (but is not
limited to)—
(c) Verification
(1) the amount and type of each such loan made;
The Secretary may require lenders, guaranty agencies, or institu-
tions of higher education to verify information or obtain eligibility
(2) the names and social security numbers of the borrowers;
459
458
20 § 10920
HIGHER EDUCATION Ch. 28
Ch. 28 STUDENT ASSISTANCE
20
or other information through the National Student Loan Data
tions of higher education to provide training for financial aid
System prior to making, guaranteeing, or certifying a loan made
administrators, student peer counselors, student staff or volunteers,
under part B or part E.
and other part-time staff and volunteers who provide financial aid,
admissions and academic counseling and outreach, and student
(d) Report to Congress
support programs in postsecondary education in postsecondary
The Secretary shall prepare and submit to the appropriate com-
institutions, communities, or statewide programs.
mittees of the Congress, in each fiscal year, a report describing the
results obtained by the establishment and operation of the student
(b) Use of funds
loan data system authorized by this section.
Financial assistance under this section may be used for-
(Pub.L. 89-329, Title IV, § 485B, as added Pub.L. 99-498, Title IV, § 407(a),
(1) development of materials and in-service training and ca-
Oct. 17, 1986, 100 Stat. 1486, and amended Pub.L. 100-50, § 15(13), June 3,
reer awareness programs;
1987, 101 Stat. 357; Pub.L. 101-239, Title II, § 2008, Dec. 19, 1989, 103 Stat.
(2) operation of short-term training institutes designed to
2121.)
improve the skills and career awareness of participants in such
HISTORICAL AND STATUTORY NOTES
institutes; and
Revision Notes and Legislative Reports
and struck out "of this subchapter" fol-
(3) special programs to assist in training of students and
1986 Act. House Reports Nos. 99-383,
lowing "part E".
part-time staff or volunteers at institutions eligible for assist-
99-598, House Conference Report No.
Subsec. (d). Pub.L. 101-239 substitut-
ance under subchapter III of this chapter.
99-861, and Statement by President, see
ed "submit to the appropriate commit-
1986 U.S.Code Cong. and Adm.News, p.
tees of the Congress, in each fiscal year,
(c) Authorization of appropriations
2572.
a report" for "submit to the Congress
1987 Act. House Report No. 100-44,
twice in each fiscal year a report".
There are authorized to be appropriated $1,000,000 to carry out
see 1987 U.S.Code Cong. and Adm.News,
1987 Amendment. Subsec. (b)(1).
the provisions of this section for fiscal year 1981 and for each of the
p. 339.
Pub.L. 100-50, § 15(13)(A), substituted
succeeding fiscal years ending prior to October 1, 1986.
"public agencies" for "Federal agencies".
1989 Act. House Report No. 101-247
Subsec. (b)(2)(D). Pub.L. 100-50,
(Pub. L. 89-329, Title IV, § 486, as added Pub.L. 99-498, Title IV, § 407(a),
and House Conference Report No.
101-386, see 1989 U.S.Code Cong. and
§ 15(13)(B), substituted "of any borrow-
Oct. 17, 1986, 100 Stat. 1487.)
er" for "of a borrower for whom the
Adm.News, p. 1906.
guaranty agency provides insurance".
HISTORICAL AND STATUTORY NOTES
Amendments
Subsec. (b)(3). Pub.L. 100-50,
1989 Amendment. Subsec. (a).
§ 15(13)(C), substituted "public agency"
Revision Notes and Legislative Reports
Prior Provisions
Pub.L. 101-239 substituted provisions
for "Federal agency".
1986 Act. House Reports Nos. 99-383,
A prior section 1093, Pub.L. 89-329,
which related to development of the sys-
99-598, House Conference Report No.
Title IV, § 486, as added Pub.L. 96-374,
Effective Dates
99-861, and Statement by President, see
tem, for provisions which related to au-
Title IV, § 451(a), Oct. 3, 1980, 94 Stat.
1987 Act. Amendment by Pub.L.
1986 U.S.Code Cong. and Adm.News, p.
thority of the Secretary.
1450, also provided for a program of
100-50 effective as if enacted as part of
2572.
Subsec. (b). Pub.L. 101-239 substitut-
the Higher Education Amendments of
training in financial aid and student sup-
Effective Dates
ed provisions which related to additional
1986, Pub.L. 99-498, see section 27 of
port services for each of the fiscal years
1986 Act. Section effective Oct. 17,
information, for provisions which relat-
Pub.L. 100-50, set out as a note under
ending prior to Oct. 1, 1985, prior to the
1986, see section 2 of Pub.L. 99-498, set
ed to access to information.
section 1001 of this title.
out as a note under section 1001 of this
general revision of this part by Pub.L.
99-498.
Subsec. (c). Pub.L. 101-239 in head-
1986 Act. Section effective Oct. 17,
title.
ing struck out "not required" following
1986, see section 2 of Pub.L. 99-498, set
"Verification", and in text substituted
out as a note under section 1001 of this
WESTLAW ELECTRONIC RESEARCH
"may require" for "shall not require",
title.
See WESTLAW guide following the Explanation pages of this volume.
WESTLAW ELECTRONIC RESEARCH
See WESTLAW guide following the Explanation pages of this volume.
§ 1094. Program participation agreements
§ 1093. Training in financial aid and student support services
(a) Required for programs of assistance; contents
(a) Program authority
In order to be an eligible institution for the purposes of any
The Secretary is authorized to enter into contracts with appropri-
program authorized under this subchapter and part c of subchapter
ate public agencies or nonprofit private organizations or institu-
I of chapter 34 of Title 42, an institution must be an institution of
460
461
20
§
HIGHER EDUCATION Ch. 28
Ch. 28 STUDENT ASSISTANCE
20
34094
higher education or an eligible institution (as that term is defined
tion, the institution will make available to prospective students,
for the purpose of that program) and shall, except with respect to a
at or before the time of application, the most recent available
program under subpart 3 of part A of this subchapter, enter into a
data concerning employment statistics, graduation statistics,
program participation agreement with the Secretary. The agree-
and any other information necessary to substantiate the truth-
ment shall condition the initial and continuing eligibility of an
fulness of the advertisements.
institution to participate in a program upon compliance with the
(9) In the case of an institution participating in a program
following requirements:
under part B of this subchapter, the institution will inform all
(1) The institution will use funds received by it for any
eligible borrowers enrolled in the institution about the avail-
program under this subchapter and part C of subchapter I of
ability and eligibility of such borrowers for State grant assist-
chapter 34 of Title 42 and any interest or other earnings
ance from the State in which the institution is located, and will
thereon solely for the purpose specified in and in accordance
inform such borrowers from another State of the source for
with the provision of that program.
further information concerning such assistance from that State.
(2) The institution shall not charge any student a fee for
(10) The institution certifies that it has in operation a drug
processing or handling any application, form, or data required
to determine the student's eligibility for assistance under this
abuse prevention program that is determined by the institution
to be accessible to any officer, employee, or student at the
subchapter and part C of subchapter I of chapter 34 of Title 42
institution.
or the amount of such assistance, or for completing or handling
the Federal Student Assistance Report provided for in section
(11) In the case of any institution which admits students on
the basis of their ability to benefit from the education or
1090(e) of this title.
training provided by such institution (as determined under
(3) The institution will establish and maintain such adminis-
section 1091(d) of this title), the institution will make available
trative and fiscal procedures and records as may be necessary
to such students a program proven successful in assisting stu-
to ensure proper and efficient administration of funds received
dents in obtaining a certificate of high school equivalency.
from the Secretary or from students under this subchapter and
part c of subchapter I of chapter 34 of Title 42.
(b) Hearings
(4) The institution will comply with the provisions of subsec-
(1) An institution that has received written notice of a final audit
tion (b) of this section and the regulations prescribed under
or program review determination and that desires to have such
that subsection, relating to fiscal eligibility.
determination reviewed by the Secretary shall submit to the Secre-
(5) The institution will submit reports to the Secretary and,
tary a written request for review not later than 45 days after receipt
in the case of an institution participating in a program under
of notification of the final audit or program review determination.
part B or part D of this subchapter, to holders of loans made to
(2) The Secretary shall, upon receipt of written notice under
the institution's students under such parts at such times and
paragraph (1), arrange for a hearing on the record and notify the
containing such information as the Secretary may reasonably
institution within 30 days of receipt of such notice the date, time,
require to carry out the purpose of this subchapter and part C
and place of such hearing. Such hearing shall take place not later
of subchapter I of chapter 34 of Title 42.
than 120 days from the date upon which the Secretary notifies the
(6) The institution will not provide any student with any
institution.
statement or certification to any lender under part B of this
(c) Audits; financial responsibility; enforcement of standards
subchapter that qualifies the student for a loan or loans in
(1) Notwithstanding any other provisions of this subchapter and
excess of the amount that student is eligible to borrow in
part C of subchapter I of chapter 34 of Title 42, the Secretary is
accordance with sections 1075(a), 1078(a)(2) and 1078(b)(1)(A)
authorized to prescribe such regulations as may be necessary to
and (B) of this title.
provide for-
(7) The institution will comply with the requirements of
(A)(i) except as provided in clause (ii), a financial and com-
section 1092 of this title.
pliance audit of an eligible institution, with regard to any funds
(8) In the case of an institution that advertises job placement
obtained by it under this subchapter and part C of subchapter I
rates as a means of attracting students to enroll in the institu-
of chapter 34 of Title 42 or obtained from a student or a parent
462
463
Ch. 28 STUDENT ASSISTANCE
94
20 § 1094
HIGHER EDUCATION Ch. 28
statement of the basis of the action is mailed to the institution
who has a loan insured or guaranteed by the Secretary under
this subchapter and part C of subchapter I of chapter 34 of Title
(by registered mail, return receipt requested), withhold funds
from the institution or its students and withdraw the institu-
42, at least once every 2 years and covering the period since the
most recent audit, conducted by a qualified, independent orga-
tion's authority to obligate funds under any program under this
nization or person in accordance with standards established by
subchapter, if the Secretary-
the Comptroller General for the audit of governmental orga-
(i) receives information, determined by the Secretary to
nizations, programs, and functions, and as prescribed in regula-
be reliable, that the institution is violating any provision of
tions of the Secretary, the results of which shall be submitted to
this subchapter, any regulation prescribed under this sub-
chapter, or any applicable special arrangement, agreement,
the Secretary; or
(ii) with regard to an eligible institution which is audited
or limitation,
under chapter 75 of Title 31, deeming such audit to satisfy the
(ii) determines that immediate action is necessary to
requirements of clause (i) for the period covered by such audit;
prevent misuse of Federal funds, and
(B) in matters not governed by specific program provisions,
(iii) determines that the likelihood of loss outweighs the
the establishment of reasonable standards of financial responsi-
importance of the procedures prescribed under subpara-
bility and appropriate institutional capability for the adminis-
graph (D) for limitation, suspension, or termination,
tration by an eligible institution of a program of student finan-
except that an emergency action shall not exceed 30 days unless
cial aid under this subchapter and part c of subchapter I of
limitation, suspension, or termination proceedings are initiated
chapter 34 of Title 42;
by the Secretary against the institution within that period of
(C) the establishment, by each eligible institution under part
time, and except that the Secretary shall provide the institution
B of this subchapter responsible for furnishing to the lender the
an opportunity to show cause, if it so requests, that the emer-
statement required by section 1078(a)(2)(A)(i) of this title, of
gency action is unwarranted;
policies and procedures by which the latest known address and
(F) the limitation, suspension, or termination of the eligibili-
enrollment status of any student who has had a loan insured
ty of an individual or an organization to contract with any
under this part and who has either formally terminated his
institution to administer any aspect of an institution's student
enrollment, or failed to re-enroll on at least a half-time basis, at
assistance program under this subchapter, or the imposition of
such institution, shall be furnished either to the holder (or if
a civil penalty under paragraph (2)(B), whenever the Secretary
unknown, the insurer) of the note, not later than 60 days after
has determined, after reasonable notice and opportunity for a
such termination or failure to re-enroll;
hearing on the record, that such organization, acting on behalf
(D) the limitation, suspension, or termination of the eligibili-
of an institution, has violated or failed to carry out any provi-
ty for any program under this subchapter and part C of sub-
sion of this subchapter, any regulation prescribed under this
chapter I of chapter 34 of Title 42 of any otherwise eligible
subchapter, or any applicable special arrangement, agreement,
institution, or the imposition of a civil penalty under paragraph
or limitation, except that no period of suspension under this
(2)(B) whenever the Secretary has determined, after reasonable
subparagraph shall exceed 60 days unless the organization and
notice and opportunity for hearing on the record, that such
the Secretary agree to an extension, or unless limitation or
institution has violated or failed to carry out any provision of
termination proceedings are initiated by the Secretary against
this subchapter and part c of subchapter I of chapter 34 of Title
the individual or organization within that period of time; and
42, any regulation prescribed under this subchapter and part c
of subchapter I of chapter 34 of Title 42, or any applicable
(G) an emergency action against an individual or an orga-
nization that has contracted with an institution to administer
special arrangement, agreement, or limitation, except that no
period of suspension under this section shall exceed 60 days
any aspect of the institution's student assistance program under
unless the institution and the Secretary agree to an extension or
this subchapter, under which the Secretary shall, effective on
unless limitation or termination proceedings are initiated by
the date on which a notice and statement of the basis of the
action is mailed to such individual or organization (by reg-
the Secretary within that period of time;
istered mail, return receipt requested), withhold funds from the
(E) an emergency action against an institution, under which
individual or organization and withdraw the individual or orga-
the Secretary shall, effective on the date on which a notice and
465
464
20
HIGHER EDUCATION Ch.
28
S
Ch. 28 STUDENT ASSISTANCE
20 $1094
nization's authority to act on behalf of an institution under any
upon in compromise, the appropriateness of the penalty to the size
program under this subchapter, if the Secretary-
of the institution of higher education subject to the determination,
(i) receives information, determined by the Secretary to
and the gravity of the violation, failure, or misrepresentation shall
be reliable, that the individual or organization, acting on
be considered. The amount of such penalty, when finally deter-
behalf of an institution, is violating any provision of this
mined, or the amount agreed upon in compromise, may be deduct-
subchapter, any regulation prescribed under this subchap-
ed from any sums owing by the United States to the institution
ter, or any applicable special arrangement, agreement, or
charged.
limitation,
(3) The Secretary shall publish a list of State agencies which the
(ii) determines that immediate action is necessary to
Secretary determines to be reliable authority as to the quality of
prevent misuse of Federal funds, and
public postsecondary vocational education in their respective States
(iii) determines that the likelihood of loss outweighs the
for the purpose of determining eligibility for all Federal student
importance of the procedures prescribed under subpara-
assistance programs.
graph (F), for limitation, suspension, or termination,
except that an emergency action shall not exceed 30 days unless
(d) "Eligible Institution" defined
the limitation, suspension, or termination proceedings are initi-
For the purpose of this section, the term "eligible institution"
ated by the Secretary against the individual or organization
means any such institution described in section 1085(a) of this title.
within that period of time, and except that the Secretary shall
(Pub. L. 89-329, Title IV, $ 487, as added Pub.L. 99-498, Title IV, § 407(a),
provide the individual or organization an opportunity to show
Oct. 17, 1986, 100 Stat. 1488, and amended Pub.L. 101-239, Title II,
cause, if it so requests, that the emergency action is unwarrant-
§§ 2003(c)(2), 2006(c), Dec. 19, 1989, 103 Stat. 2114, 2118.)
ed.
HISTORICAL AND STATUTORY NOTES
(2)(A) Upon determination, after reasonable notice and opportu-
Revision Notes and Legislative Reports
Subsec.
(c)(1)(E)-(G). Pub.L.
nity for a hearing on the record, that an eligible institution has
1986 Act. House Reports Nos. 99-383,
101-239, § 2006(c)(3), added subpars.
engaged in substantial misrepresentation of the nature of its edu-
99-598, House Conference Report No.
(E) to (G).
cational program, its financial charges, or the employability of its
99-861, and Statement by President, see
1986 U.S.Code Cong. and Adm.News, p.
Effective Dates
graduates, the Secretary may suspend or terminate the eligibility
2572.
1989 Act. Enactment of subsec.
status for any or all programs under this subchapter and part c of
1989 Act. House Report No. 101-247
(a)(11) by Pub.L. 101-239 applicable
subchapter I of chapter 34 of Title 42 of any otherwise eligible
and House Conference Report No.
with respect to periods of enrollment
institution, in accordance with procedures specified in paragraph
101-386, see 1989 U.S.Code Cong. and
beginning on or after Jan. 1, 1990, see
Adm.News, p. 1906.
section 2003(c)(3) of Pub.L. 101-239, set
(1)(D) of this subsection, until the Secretary finds that such practic-
out as a note under section 1078-1 of
References in Text
this title.
es have been corrected.
Section 1090(e) of this title, referred to
(B)(i) Upon determination, after reasonable notice and opportu-
in subsec. (a)(2), was redesignated sec-
1986 Act. Section effective Oct. 17,
tion 1090(f) of this title by Pub.L.
1986, except as otherwise provided, see
nity for a hearing on the record, that an eligible institution-
100-50, § 15(6)(A), June 3, 1987, 101
section 2 of Pub.L. 99-498, set out as a
Stat. 356.
note under section 1001 of this title.
(I) has violated or failed to carry out any provision of this
subchapter and part C of subchapter I of chapter 34 of Title 42
Amendments
Subsec. (a)(10) of this section applica-
1989 Amendment. Subsec. (a)(11).
ble only to periods of enrollment begin-
or any regulation prescribed under this subchapter and part c
Pub.L. 101-239, § 2003(c)(2), added par.
ning on or after July 1, 1987, see section
of subchapter I of chapter 34 of Title 42; or
(11).
407(b) of Pub.L. 99-498, set out as a note
under section 1091 of this title.
(II) has engaged in substantial misrepresentation of the na-
Subsec. (c)(1)(C). Pub.L. 101-239,
ture of its educational program, its financial charges, and the
§ 2006(c)(1), struck out "and" following
Prior Provisions
"failure to re-enroll;".
A prior section 1094, Pub.L. 89-329,
employability of its graduates,
Subsec. (c)(1)(D). Pub.L. 101-239,
Title IV, § 487, as added Pub.L. 96-374,
the Secretary may impose a civil penalty upon such institution of
§ 2006(c)(2), substituted "Title 42, any"
Title IV, § 451(a), Oct. 3, 1980, 94 Stat.
not to exceed $25,000 for each violation or misrepresentation.
for "Title 42 or any", added "or any
1451, and amended Pub.L. 99-272, Title
applicable special arrangement, agree-
XVI, § 16034, Apr. 7, 1986, 100 Stat. 356,
(ii) Any civil penalty may be compromised by the Secretary. In
ment, or limitation," following "Title
provided for program participation
determining the amount of such penalty, or the amount agreed
42", and substituted "period of time;" for
agreements, prior to the general revision
"period of time.".
of this part by Pub.L. 99-498.
466
467
20 $
HIGHER EDUCATION Ch. 28
Ch. 28 STUDENT ASSISTANCE
20 $ 1096
LIBRARY REFERENCES
1987 Act. House Report No. 100-44,
Pub.L. 100-50, set out as a note under
see 1987 U.S.Code Cong. and Adm.News,
section 1001 of this title.
American Digest System
Loans and loan guarantees or insurance, see Colleges and Universities 9.25(25(2).
p. 339.
1986 Act. Section effective Oct. 17,
Encyclopedias Loans and loan guarantees or insurance, see C.J.S. Colleges and Universities
Amendments
1986, see section 2 of Pub.L. 99-498, set
1987 Amendment. Pub.L. 100-50 sub-
out as a note under section 1001 of this
§ 28.
stituted "section 2752 of Title 42" for
title.
"section 2756 of Title 42".
Prior Provisions
WESTLAW ELECTRONIC RESEARCH
A prior section 1095, Pub.L. 89-329,
Effective Dates
Colleges and universities cases: 81k[add key number].
Title IV, $ 488, as added Pub.L. 96-374,
See, also, WESTLAW guide following the Explanation pages of this volume.
1987 Act. Amendment by Pub.L.
Title IV, § 451(a), Oct. 3, 1980, 94 Stat.
100-50 effective as if enacted as part of
1452, provided for the transfer of allot-
the Higher Education Amendments of
NOTES OF DECISIONS
ments, prior to the general revision of
1986, Pub.L. 99-498, see section 27 of
this part by Pub.L. 99-498.
Hearing 1
of Education authority to take emergen-
Termination of eligibility 2
cy action to terminate university's partic-
CROSS REFERENCES
ipation in program, and thus, university
was entitled to preliminary injunction
Use of funds from grants for work-study programs, see 42 USCA § 2753.
1. Hearing
preventing emergency action; statute re-
Seminary had no right to hearing pri-
quired agency action to take place only
WESTLAW ELECTRONIC RESEARCH
or to Department of Education determi-
after reasonable notice and opportunity
to be heard on the merits. Ross Univer-
See WESTLAW guide following the Explanation pages of this volume.
nation that it was not entitled to partic-
ipate in federal student financial assist-
sity School of Medicine, School of Veter-
ance programs because its credits were
inary Medicine (St. Kitts) Ltd. v. Cava-
not accepted at three accredited colleges
zos, D.D.C.1989, 716 F.Supp. 638.
§ 1096. Administrative expenses
to which its students actually transfer-
Institution which was previously
(a) Amount of payments
red. Beth Rochel Seminary v. Bennett,
found eligible to participate in federal
1987, 825 F.2d 478, 263 App.D.C. 341.
student financial assistance programs
From the sums appropriated for any fiscal year for the purpose of
2. Termination of eligibility
was entitled to procedural protections
the program authorized under subpart 1 of part A of this subchap-
University established likelihood of
under Higher Education Act prior to ter-
prevailing on merits of its claim that
mination of its eligibility status. Conti-
ter, the Secretary shall reserve such sums as may be necessary to
statutes governing guaranteed student
nental Training Services, Inc. v. Cavazos,
pay to each institution with which he has an agreement under
loan program did not give Department
S.D.Ind.1989, 709 F.Supp. 1443.
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
§ 1095. Transfer of allotments
an agreement with the Secretary under subpart 2 of part A of this
Up to 10 percent of the allotment of an eligible institution for a
subchapter or part c of subchapter I of chapter 34 of Title 42 (other
fiscal year under section 1070b-3 of this title or 2752 of Title 42,
than section 2756a of Title 42) or under part D of this subchapter
may be transferred to, and used for the purposes of, the institution's
shall be entitled for each fiscal year which such institution disburs-
allotment under the other section within the discretion of such
es funds to eligible students under any such part to a payment for
institution in order to offer an arrangement of types of aid, includ-
the purpose set forth in subsection (b) of this section. The payment
ing institutional and State aid, which best fits the needs of each
for a fiscal year shall be payable from each such allotment by
individual student. The Secretary shall have no control over such
payment in accordance with regulations of the Secretary and shall
transfer, except as specifically authorized, except for the collection
be equal to 5 percent of the institution's first $2,750,000 of expendi-
and dissemination of information.
tures plus 4 percent of the institution's expenditures greater than
(Pub. L. 89-329, Title IV, § 488, as added Pub.L. 99-498, Title IV, § 407(a),
$2,750,000 and less than $5,500,000, plus 3 percent of the institu-
Oct. 17, 1986, 100 Stat. 1490, and amended Pub.L. 100-50, § 15(14), June 3,
tion's expenditures in excess of $5,500,000 during the fiscal year
1987, 101 Stat. 357.)
from the sum of its grants to students under subpart 2 of part A of
this subchapter, its expenditures during such fiscal year under part
HISTORICAL AND STATUTORY NOTES
C of subchapter I of chapter 34 of Title 42 for compensation of
Revision Notes and Legislative Reports
99-861, and Statement by President, see
students, and the principal amount of loans made during such fiscal
1986 Act. House Reports Nos. 99-383,
1986 U.S.Code Cong. and Adm.News, p.
year from its student loan fund established under part D of this
99-598, House Conference Report No. 2572.
subchapter, excluding the principal amount of any such loans
468
469
Ch. 28 STUDENT ASSISTANCE
2
97
20 § 1096
HIGHER EDUCATION Ch. 28
CROSS REFERENCES
which the institution has agreed to assign under section
Funding for community-service-learning programs, see 42 USCA § 2756a.
1087cc(a)(6)(B) of this title. The payment for a fiscal year for the
Use of funds from grants for work-study programs, see 42 USCA § 2753.
purpose of subsection (b) of this section with respect to section
2756a of Title 42 shall be payable from each allotment under part C
WESTLAW ELECTRONIC RESEARCH
of subchapter I of chapter 34 of Title 42 in accordance with
See WESTLAW guide following the Explanation pages of this volume.
regulations of the Secretary, and shall be 10 percent of the institu-
tion's expenditures during such fiscal year under such section. In
addition, the Secretary shall provide for payment to each institution
§ 1097. Criminal penalties
of higher education an amount equal to 100 percent of the costs
(a) In general
incurred by the institution in implementing and operating the
immigration status verification system under section 1091(c) of this
Any person who knowingly and willfully embezzles, misapplies,
steals, or obtains by fraud, false statement, or forgery any funds,
title.
assets, or property provided or insured under this subchapter and
(b) Purpose of payments
part c of subchapter I of chapter 34 of Title 42 shall be fined not
The sums paid to institutions under this part are for the sole
more than $10,000 or imprisoned for not more than 5 years, or
purpose of offsetting the administrative costs of the programs
both; but if the amount so embezzled, misapplied, stolen, or ob-
described in subsection (a) of this section.
tained by fraud, false statement, or forgery does not exceed $200,
L. 89-329, Title IV, § 489, as added Pub.L. 99-498, Title IV, § 407(a),
the fine shall not be more than $1,000 and imprisonment shall not
Oct. (Pub. 17, 1986, 100 Stat. 1491, and amended Pub.L. 99-603, Title June 3, I,
exceed one year, or both.
§ 121(b)(7), Nov. 6, 1986, 100 Stat. 3391; Pub.L. 100-50, § 15(15),
(b) Assignment of loans
1987, 101 Stat. 357.)
Any person who knowingly and willfully makes any false state-
HISTORICAL AND STATUTORY NOTES
ment, furnishes any false information, or conceals any material
Revision Notes and Legislative Reports
implementing and operating the immi-
information in connection with the assignment of a loan which is
1986 Acts. House Reports Nos.
gration status verification system under
made or insured under this subchapter and part c of subchapter I
99-383, 99-598, House Conference Re-
section 1091(c) of this title.
of chapter 34 of Title 42 shall, upon conviction thereof, be fined not
port No. 99-861, and Statement by Presi-
dent, see 1986 U.S.Code Cong. and Adm.
Effective Dates
more than $1,000 or imprisoned not more than one year, or both.
1987 Act. Amendment by Pub.L.
News, p. 2572.
100-50 effective as if enacted as part of
(c) Inducements to lend or assign
House Report No. 99-682 (Parts I-V),
the Higher Education Amendments of
and House Conference Report No.
1986, Pub.L. 99-498, see section 27 of
Any person who knowingly and willfully makes an unlawful
99-1000, see 1986 U.S.Code Cong. and
Pub.L. 100-50, set out as a note under
payment to an eligible lender under part B of this subchapter as an
Adm.News, p. 5649.
section 1001 of this title.
inducement to make, or to acquire by assignment, a loan insured
1987 Act. House Report No. 100-44,
1986 Acts. Amendment by Pub.L.
see 1987 U.S.Code Cong. and Adm.News,
99-603 effective Oct. 1, 1987, see section
under that part shall, upon conviction thereof, be fined not more
p. 339.
121(c)(2) of Pub.L. 99-603, set out as a
than $1,000 or imprisoned not more than one year, or both.
note under section 502 of Title 42, The
Amendments 1987 Amendment. Subsec. (a).
Public Health and Welfare.
(d) Obstruction of justice
Pub.L. 100-50 substituted in the original
Section effective Oct. 17, 1986, see sec-
Any person who knowingly and willfully destroys or conceals any
"other than section 447", which trans-
tion 2 of Pub.L. 99-498, set out as a note
lates as "other than section 2756a of Ti-
under section 1001 of this title.
record relating to the provision of assistance under this subchapter
tle 42", for "other than section 448",
and part c of subchapter I of chapter 34 of Title 42 with intent to
which had been previously translated
Prior Provisions
also as "other than section 2756a of Title
A prior section 1096, Pub.L. 89-329,
defraud the United States or to prevent the United States from
42" as the probable intent of Congress.
Title IV, § 489, as added Pub.L. 96-374,
enforcing any right obtained by subrogation under this part, shall
The amendment therefore required no
Title IV, § 451(a), Oct. 3, 1980, 94 Stat.
upon conviction thereof, be fined not more than $10,000 or impris-
change in text.
1453, and amended Pub.L. 97-35, Title
V, § 537(a)(2), Aug. 13, 1981, 95 Stat.
oned not more than 5 years, or both.
1986 Amendment. Subsec. (a).
Pub.L. 99-603 added provision directing
456, related to administrative expenses,
(Pub. L. 89-329, Title IV, § 490, as added Pub.L. 99-498, Title IV, $ 407(a),
the Secretary to pay the costs incurred
prior to the general revision of this part
Oct. 17, 1986, 100 Stat. 1491.)
by institutions of higher education in
by Pub.L. 99-498.
471
470
97
HIGHER EDUCATION
Ch. 28
Ch. 28 STUDENT ASSISTANCE
20 s 1098
HISTORICAL AND STATUTORY NOTES
(A) 3 members shall be appointed by the President pro tem-
Revision Notes and Legislative Reports
out as a note under section 1001 of this
pore of the Senate upon the recommendation of the Majority
1986 Act. House Reports Nos. 99-383,
title.
Leader and the Minority Leader,
99-598, House Conference Report No.
Prior Provisions
99-861, and Statement by President, see
1986 U.S.Code Cong. and Adm.News, p.
A prior section 1097, Pub.L. 89-329,
(B) 3 members shall be appointed by the Speaker of the
Title IV, § 490, as added Pub.L. 96-374,
House of Representatives upon the recommendation of the
2572.
Title IV, § 451(a), Oct. 3, 1980, 94 Stat.
Majority Leader and the Minority Leader, and
Effective Dates
1453, related to criminal penalties, prior
1986 Act. Section effective Oct. 17,
to the general revision of this part by
(C) 5 members shall be appointed by the Secretary including,
1986, see section 2 of Pub.L. 99-498, set
Pub.L. 99-498.
but not limited to representatives of States, institutions of
higher education, secondary schools, credit institutions, stu-
WESTLAW ELECTRONIC RESEARCH
dents, and parents.
See WESTLAW guide following the Explanation pages of this volume.
(2) Not less than 7 members of the Advisory Committee shall be
individuals who have been appointed on the basis of technical
§ 1098. Advisory Committee on Student Financial Assistance
qualifications, professional standing and demonstrated knowledge
(a) Establishment and purpose
in the fields of higher education and student aid administration,
need analysis, financing postsecondary education, student aid deliv-
(1) There is established in the Department an independent Advis-
ory Committee on Student Financial Assistance (hereafter in this
ery, and the operations and financing of student loan guarantee
agencies.
section referred to as the "Advisory Committee") which shall pro-
vide advice and counsel to the Congress and to the Secretary on
(d) Functions of the Committee
student financial aid matters.
The Advisory Committee shall-
(2) The purpose of the Advisory Committee is-
(A) to provide extensive knowledge and understanding of the
(1) develop, review, and comment annually upon the system
Federal, State, and institutional programs of postsecondary
of needs analysis established under sections 1070a-1 through
1070a-5 of this title and part E of this subchapter;
student assistance;
(B) to provide technical expertise with regard to systems of
(2) monitor, apprise, and evaluate the effectiveness of student
needs analysis and application forms; and
aid delivery and recommend improvements;
(C) to make recommendations that will result in the mainte-
(3) recommend data collection needs and student informa-
nance of access to postsecondary education for low- and mid-
tion requirements which would improve access and choice for
dle-income students.
eligible students under this subchapter and part C of subchapter
I of chapter 34 of Title 42 and assist the Department of Edu-
(b) Independence of Advisory Committee
cation in improving the delivery of student aid and in assessing
In the exercise of its functions, powers, and duties, the Advisory
the impact of legislative and administrative policy proposals;
Committee shall be independent of the Secretary and the other
offices and officers of the Department. The recommendations of
(4) review and comment upon, prior to promulgation, all
the Committee shall not be subject to review or approval by any
regulations affecting programs under this subchapter and part
officer in the executive branch, but may be submitted to the
C of subchapter I of chapter 34 of Title 42, including proposed
regulations;
Secretary for comment prior to submission to the Congress in
accordance with subsection (f) of this section. The Secretary's
(5) recommend to the Congress and to the Secretary such
authority to terminate advisory committees of the Department pur-
studies, surveys, and analyses of student financial assistance
suant to section 1233g(b) of this title ceased to be effective on June
programs, policies, and practices, including the special needs of
low-income, disadvantaged, and nontraditional students, and
23, 1983.
the means by which the needs may be met, but nothing in this
(c) Membership
section shall authorize the committee to perform such studies,
(1) The Advisory Committee shall have 11 members of which-
surveys, or analyses;
472
20 U.S.C.A. §§ 1001 to 1240-17
473
20
HIGHER EDUCATION Ch. 28
Ch. 28 STUDENT ASSISTANCE
20
(6) review and comment upon standards by which financial
(2) Members of the Advisory Committee who are not officers or
need is measured in determining eligibility for Federal student
full-time employees of the United States may each receive reim-
assistance programs; and
bursement for travel expenses incident to attending Advisory Com-
(7) appraise the adequacies and deficiencies of current stu-
mittee meetings, including per diem in lieu of subsistence, as
dent financial aid information resources and services and eval-
authorized by section 5703 of Title 5, for persons in the Government
uate the effectiveness of current student aid information pro-
service employed intermittently.
grams.
(h) Personnel and resources
(e) Operations of the Committee
(1) The Advisory Committee may appoint such personnel as may
(1) Each member of the Advisory Committee shall be appointed
be necessary by the Chairman without regard to the provisions of
for a term of 3 years, except that, of the members first appointed-
Title 5 governing appointments in the competitive service, and may
(A) 4 shall be appointed for a term of 1 year;
be paid without regard to the provisions of chapter 51 and subtitle¹
(B) 4 shall be appointed for a term of 2 years; and
III of chapter 53 of such title relating to classification and General
(C) 3 shall be appointed for a term of 3 years,
Schedule pay rates, but no individual so appointed shall be paid in
excess of the rate authorized for GS-18 of the General Schedule.
as designated at the time of appointment by the Secretary.
(2) Any member appointed to fill a vacancy occurring prior to the
(2) In carrying out its duties under this chapter, the Advisory
expiration of the term of a predecessor shall be appointed only for
Committee shall consult with other Federal agencies, representa-
the remainder of such term. A member of the Advisory Committee
tives of State and local governments, and private organizations to
the extent feasible.
shall, upon request, continue to serve after the expiration of a term
until a successor has been appointed. A member of the Advisory
(3)(A) The Advisory Committee is authorized to secure directly
Committee may be reappointed to successive terms on the Advisory
from any executive department, bureau, agency, board, commis-
Committee.
sion, office, independent establishment, or instrumentality informa-
(3) The Advisory Committee shall elect a Chairman and a Vice
tion, suggestions, estimates, and statistics for the purpose of this
Chairman from among its members.
section and each such department, bureau, agency, board, commis-
sion, office, independent establishment, or instrumentality is autho-
(4) Six members of the Advisory Committee shall constitute a
rized and directed, to the extent permitted by law, to furnish such
quorum.
information, suggestions, estimates, and statistics directly to the
(5) The Advisory Committee shall meet at the call of the Chair-
Advisory Committee, upon request made by the Chairman.
man or a majority of its members.
(B) The Advisory Committee may enter into contracts for the
(f) Submission to Department for comment
acquisition of information, suggestions, estimates, and statistics for
the purpose of this section.
The Advisory Committee may submit its proposed recommenda-
tions to the Department of Education for comment for a period not
(4) The Advisory Committee is authorized to obtain the services
to exceed 30 days in each instance.
of experts and consultants in accordance with section 3109 of Title
5.
(g) Compensation and expenses
(1) Members of the Advisory Committee who are officers or
(5) The head of each Federal agency shall, to the extent not
full-time employees of the United States shall serve without com-
prohibited by law, cooperate with the Advisory Committee in carry-
pensation in addition to that received for their services as officers
ing out this section.
or employees of the United States; but they may be allowed travel
(6) The Advisory Committee is authorized to utilize, with their
expenses, including per diem in lieu of subsistence, as authorized by
consent, the services, personnel, information, and facilities of other
section 5703 of Title 5, for persons in the Government service
Federal, State, local, and private agencies with or without reim-
employed intermittently.
bursement.
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475
20
HIGHER EDUCATION Ch. 28
Ch. 28 STUDENT ASSISTANCE
26
(I) Availability of funds
HISTORICAL AND STATUTORY NOTES
In each fiscal year not less than $500,000 shall be available from
Revision Notes and Legislative Reports
Effective Dates
the amount appropriated for each such fiscal year from salaries and
1986 Act. House Reports Nos: 99-383,
1987 Act. Amendment by Pub.L.
99-598, House Conference Report No.
100-50 effective as if enacted as part of
expenses of the Department for the costs of carrying out the
99-861, and Statement by President, see
the Higher Education Amendments of
provisions of this section.
1986 U.S.Code Cong. and Adm.News, p.
1986, Pub.L. 99-498, see section 27 of
2572.
Pub.L. 100-50, set out as a note under
(j) Special Institutional lender study
1987 Act. House Report No. 100-44,
section 1001 of this title.
see 1987 U.S.Code Cong. and Adm.News,
(1) The Advisory Committee shall conduct a thorough study of
p. 339.
1986 Act. Section effective Oct. 17,
1986, see section 2 of Pub.L. 99-498, set
institutional lender policy. In carrying out the study, the Advisory
References in Text
out as a note under section 1001 of this
Committee shall examine, but not be limited to-
The provisions of Title 5 governing
title.
appointments in the competitive service,
(A) the relevance and current applicability of the institution-
referred to in subsec. (h)(1), are classi-
Prior Provisions
al lender criteria established in section 1085(d) of this title;
fied to section 3301 et seq. of Title 5,
A prior section 1098, Pub.L. 89-329,
Government Organization and Employ-
Title IV, § 491, as added Pub.L. 96-374,
(B) the appropriateness of using default rates for loans made
ees.
Title IV, § 451(a), Oct. 3, 1980, 94 Stat.
under part D of this subchapter or other institutional criteria to
GS-18 of the General Schedule, re-
1454, and amended Pub.L. 98-79, § 11,
ferred to in subsec. (h)(1), is set out
Aug. 15, 1983, 97 Stat. 484, provided for
determine institutional participation;
under section 5332 of Title 5.
the establishment of a 12-member inde-
(C) whether or not a portion or all of any special allowance
This chapter, referred to in subsec.
pendent agency within the executive
or other payments paid to institutional lenders should benefit
(h)(2), was in the original "the Act",
branch known as the National Commis-
meaning Pub.L. 89-329, as amended,
sion on Student Financial Assistance,
need-based scholarship or grant programs;
known as the Higher Education Act of
prior to the general revision of this part
(D) whether or not institutional lenders should be required to
1965. For complete classification of this
by Pub.L. 99-498.
Act to the Code, see Short Title note set
hold loans made to eligible borrowers through graduation or
out under section 1001 of this title and
Termination of Advisory Committees
termination of matriculation;
Tables.
Advisory committees established after
Jan. 5, 1973, to terminate not later than
(E) examine the extent and degree to which student access to
Amendments
the expiration of the 2-year period be-
1987 Amendment. Subsec. (b).
loan capital would be adversely affected by the restrictions
ginning on the date of their establish-
Pub.L. 100-50, § 15(16), inserted provi-
contained in section 1085(d)(2) of this title; and
ment, unless, in the case of a committee
sion that the Secretary's authority to ter-
established by the President or an officer
(F) assess the potential impact on State secondary markets
minate advisory committees of the De-
of the Federal Government, such com-
partment pursuant to section 1233g(b) of
and lender portfolios if student borrowers at higher cost col-
this title ceased to be effective June 23,
mittee is renewed by appropriate action
1983.
prior to the expiration of such 2-year
leges and universities, who come from higher income families,
period, or in the case of a committee
concentrate their lending with a few large lenders and second-
Subsec. (i). Pub.L. 100-50, § 15(17),
established by the Congress, its duration
substituted "In each fiscal year not less
is otherwise provided by law. See sec-
ary markets.
than $500,000" for "An amount, not to
tion 14 of Pub.L. 92-463, Oct. 6, 1972, 86
exceed $500,000 in any fiscal year".
(2) The Advisory Committee shall consult with the Committee on
Stat. 776, set out in Appendix 2 to Title 5,
Subsec. (j). Pub.L. 100-50, § 15(18),
Government Organization and Employ-
Education and Labor of the House of Representatives and the
added subsec. (j).
ees.
Committee on Labor and Human Resources of the Senate in carry-
ing out the study required by this subsection.
WESTLAW ELECTRONIC RESEARCH
(3) The Advisory Committee shall, not later than 2 years after
See WESTLAW guide following the Explanation pages of this volume.
June 3, 1987, prepare and submit to the Committee on Education
and Labor of the House of Representatives and the Committee on
Labor and Human Resources of the Senate a report of the study
§ 1099. Exemption from State disclosure requirements
required by this section.
Loans made, insured, or guaranteed pursuant to a program au-
(Pub. L. 89-329, Title IV, § 491, as added Pub.L. 99-498, Title IV, § 407(a),
Oct. 17, 1986, 100 Stat. 1492, and amended Pub.L. 100-50, § 15(16)-(18),
thorized by this subchapter shall not be subject to any disclosure
June 3, 1987, 101 Stat. 357.)
requirements of any State law.
1 So in original. Probably should be "subchapter".
(Pub.L. 97-320, Title VII, § 701(b), Oct. 15, 1982, 96 Stat. 1538.)
476
477