§1070. Statement of purpose; program authorization
(a) Purpose
It is the purpose of this part, to assist in making available the benefits of postsecondary education to eligible students (defined in accordance with section 1091 of this title) in institutions of higher education by-
(1) providing Federal Pell Grants to all eligible students;
(2) providing supplemental educational opportunity grants to those students who demonstrate financial need;
(3) providing for payments to the States to assist them in making financial aid available to such students;
(4) providing for special programs and projects designed (A) to identify and encourage qualified youths with financial or cultural need with a potential for postsecondary education, (B) to prepare students from low-income families for postsecondary education, and (C) to provide remedial (including remedial language study) and other services to students; and
(5) providing assistance to institutions of higher education.
(b) Secretary required to carry out purposes
The Secretary shall, in accordance with subparts 1 through 8 of this part, carry out programs to achieve the purposes of this part.
(
Prior Provisions
A prior section 1070,
Amendments
1998-Subsec. (a)(1).
Effective Date of 1998 Amendment
Amendment by
Community Scholarship Mobilization
"SEC. 811. SHORT TITLE.
"This part may be cited as the 'Community Scholarship Mobilization Act'.
"SEC. 812. FINDINGS.
"Congress finds that-
"(1) the local community, when properly organized and challenged, is one of the best sources of academic support, motivation toward achievement, and financial resources for aspiring postsecondary students;
"(2) local communities, working to complement or augment services currently offered by area schools and colleges, can raise the educational expectations and increase the rate of postsecondary attendance of their youth by forming locally-based organizations that provide both academic support (including guidance, counseling, mentoring, tutoring, encouragement, and recognition) and tangible, locally raised, effectively targeted, publicly recognized, financial assistance;
"(3) proven methods of stimulating these community efforts can be promoted through Federal support for the establishment of regional, State, or community program centers to organize and challenge community efforts to develop educational incentives and support for local students; and
"(4) using Federal funds to leverage private contributions to help students from low-income families attain educational and career goals is an efficient and effective investment of scarce taxpayer-provided resources.
"SEC. 813. DEFINITIONS.
"In this part:
"(1)
"(A) is a division or member of, responsible to, and overseen by, a national organization; and
"(B) is staffed by professionals trained to create, develop, and sustain local entities in towns, cities, and neighborhoods.
"(2)
"(A) is a nonprofit organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 [26 U.S.C. 501(c)(3)], and exempt from taxation under section 501(a) of such Code (or shall meet this criteria through affiliation with the national organization);
"(B) is formed for the purpose of providing educational scholarships and academic support for residents of the local community served by such organization;
"(C) solicits broad-based community support in its academic support and fund-raising activities;
"(D) is broadly representative of the local community in the structures of its volunteer-operated organization and has a board of directors that includes leaders from local neighborhood organizations and neighborhood residents, such as school or college personnel, parents, students, community agency representatives, retirees, and representatives of the business community;
"(E) awards scholarships without regard to age, sex, marital status, race, creed, color, religion, national origin, or disability; and
"(F) gives priority to awarding scholarships for postsecondary education to deserving students from low-income families in the local community.
"(3)
"(A) has the capacity to create, develop and sustain local entities and affiliated regional, State, or community program centers;
"(B) has the capacity to sustain newly created local entities in towns, cities, and neighborhoods through ongoing training support programs;
"(C) is described in section 501(c)(3) of the Internal Revenue Code of 1986, and exempt from taxation under section 501(a) of such Code;
"(D) is a publicly supported organization within the meaning of section 170(b)(1)(A)(iv) of such Code [26 U.S.C. 170(b)(1)(A)(iv)];
"(E) ensures that each of the organization's local entities meet the criteria described in subparagraphs (C) and (D); and
"(F) has a program for or experience in cooperating with secondary and postsecondary institutions in carrying out the organization's scholarship and academic support activities.
"(4)
"(5)
"(6)
"SEC. 814. PURPOSE; ENDOWMENT GRANT AUTHORITY.
"(a)
"(1) providing academic support, including guidance, counseling, mentoring, tutoring, and recognition; and
"(2) providing scholarship assistance for the cost of postsecondary education.
"(b)
"SEC. 815. GRANT AGREEMENT AND REQUIREMENTS.
"(a)
"(1) require a national organization to establish an endowment fund in the amount of the grant, the corpus of which shall remain intact and the interest income from which shall be used to support the activities described in paragraphs (2) and (3);
"(2) require a national organization to use 70 percent of the interest income from the endowment fund in any fiscal year to support the establishment or ongoing work of regional, State or community program centers to enable such centers to work with local communities to establish local entities in high poverty areas and provide ongoing technical assistance, training workshops, and other activities to help ensure the ongoing success of the local entities;
"(3) require a national organization to use 30 percent of the interest income from the endowment fund in any fiscal year to provide scholarships for postsecondary education to students from low-income families, which scholarships shall be matched on a dollar-for-dollar basis from funds raised by the local entities;
"(4) require that at least 50 percent of all the interest income from the endowment [fund] be allocated to establish new local entities or support regional, State or community program centers in high poverty areas;
"(5) require a national organization to submit, for each fiscal year in which such organization uses the interest from the endowment fund, a report to the Secretary that contains-
"(A) a description of the programs and activities supported by the interest on the endowment fund;
"(B) the audited financial statement of the national organization for the preceding fiscal year;
"(C) a plan for the programs and activities to be supported by the interest on the endowment fund as the Secretary may require;
"(D) an evaluation of the programs and activities supported by the interest on the endowment fund as the Secretary may require; and
"(E) data indicating the number of students from low-income families who receive scholarships from local entities, and the amounts of such scholarships;
"(6) contain such assurances as the Secretary may require with respect to the management and operation of the endowment fund; and
"(7) contain an assurance that if the Secretary determines that such organization is not in substantial compliance with the provisions of this part, then the national organization shall pay to the Secretary an amount equal to the corpus of the endowment fund plus any accrued interest on such fund that is available to the national organization on the date of such determination.
"(b)
"SEC. 816. AUTHORIZATION OF APPROPRIATIONS.
"There are authorized to be appropriated to carry out this part $10,000,000 for fiscal year 2000."
Community School Partnerships
Study of Federal Benefit Coordination
Section 1405 of
Olympic Scholarships
"(a)
"(1)
"(2)
"(b)
"(c)
"(d)
"(e)
Persian Gulf Conflict Higher Education Assistance
"SEC. 4. OPERATION DESERT SHIELD/DESERT STORM WAIVER AUTHORITY.
"(a)
"(1) the men and women serving on active duty in connection with Operation Desert Shield or Operation Desert Storm who are borrowers of Stafford Loans or Perkins Loans are not placed in a worse position financially in relation to those loans because of such service;
"(2) the administrative requirements placed on all borrowers of student loans made in accordance with title IV of the Act [20 U.S.C. 1070 et seq.; 42 U.S.C. 2751 et seq.] who are engaged in such military service are minimized to the extent possible without impairing the integrity of the student loan programs, in order to ease the burden on such borrowers, and to avoid inadvertent, technical defaults; and
"(3) the future eligibility of such an individual for Pell Grants is not reduced by the amount of such assistance awarded for a period of instruction that such individual was unable to complete, or for which the individual did not receive academic credit, because he or she was called up for such service.
"(b)
"(1) the length of, and eligibility requirements for, the military deferments authorized under sections 427(a)(2)(C)(ii), 428(b)(1)(M)(ii), and 464(c)(2)(A)(ii) of the Act [20 U.S.C. 1077(a)(2)(C)(ii), 1078(b)(1)(M)(ii), 1087dd(c)(2)(A)(ii)], in order to enable the borrower of a Stafford Loan or a Perkins Loan who is or was serving on active duty in connection with Operation Desert Shield or Operation Desert Storm to obtain a military deferment, under which interest shall accrue and shall, if otherwise payable by the Secretary, be paid by the Secretary of Education, for the duration of such service;
"(2) administrative requirements placed on all borrowers of student loans made in accordance with title IV of the Act who are or were engaged in such military service;
"(3) the number of years for which individuals who are engaged in such military service may be eligible for Pell Grants under subpart 1 of part A of title IV of the Act [20 U.S.C. 1070a et seq.];
"(4) the point at which the borrower of a Stafford Loan who is or was engaged in such military service is required to resume repayment of principal and interest on such loan after the borrower completes a period of deferment under section 427(a)(2)(C)(ii) or 428(b)(1)(M)(ii) of the Act;
"(5) the point at which the borrower of a Stafford Loan who is or was engaged in such military service is required to resume repayment of principal and interest on such loan after the borrower completes a single period of deferment under section 427(a)(2)(C)(i) or 428(b)(1)(M)(i) of the Act subsequent to such service; and
"(6) the modification of the terms 'annual adjusted family income' and 'available income,' as used in the determination of need for student financial assistance under title IV of the Act for such individual (and the determination of such need for his or her spouse and dependents, if applicable), to mean the sums received in the first calendar year of the award year for which such determination is made, in order to reflect more accurately the financial condition of such individual and his or her family.
"(c)
"(d)
"(1) Individuals 'serving on active duty in connection with Operation Desert Shield or Operation Desert Storm' shall include-
"(A) any Reserve of an Armed Force called to active duty under section 672(a) [now 12301(a)], 672(g) [now 12301(g)], 673 [now 12302], 673b [now 12304], 674 [now 12306], or 688 of title 10, United States Code, for service in connection with Operation Desert Shield or Operation Desert Storm, regardless of the location at which such active duty service is performed; and
"(B) for purposes of waivers of administrative requirements under subsection (b)(2) only, any other member of an Armed Force on active duty in connection with Operation Desert Shield or Operation Desert Storm, who has been assigned to a duty station at a location other than the location at which such member is normally assigned.
"(2) The term 'active duty' has the meaning given such term in section 101(22) of title 10, United States Code, except that such term does not include active duty for training or attendance at a service school.
"SEC. 5. TUITION REFUNDS OR CREDITS.
"(a)
"(b)
"SEC. 6. TERMINATION OF AUTHORITY.
"The provisions of sections 4 and 5 shall cease to be effective on September 30, 1997."
"SEC. 371. SHORT TITLE
"This part may be cited as the 'Persian Gulf Conflict Higher Education Assistance Act'.
"SEC. 372. [Superseded by section 4 of
"SEC. 373. [Superseded by section 5 of
"SEC. 374. [Amended section 294d of Title 42, The Public Health and Welfare.]
"SEC. 375. [Superseded by section 6 of
"SEC. 376. COORDINATION WITH OTHER LAW
"If the Higher Education Technical Amendments of 1991 [
Section Referred to in Other Sections
This section is referred to in section 1070a of this title.