Archived Information

Reauthorization of the Higher Education Act


Subpart 3--Federal Supplemental Educational Opportunity Grant Program

Extension of Program

SEC. 413. Section 413A(b) of the Act is amended by striking out "$675,000,000 for fiscal year 1993" and inserting in lieu thereof "$619,000,000 for fiscal year 1999".
SELECTION OF RECIPIENTS AND USE OF FUNDS
SEC. 414. Section 413C of the Act is amended --
  1. by amending subsection (c)(2) to read as follows:

    "(2) In carrying out paragraph (1), each institution of higher education shall, in the agreement made under section 487, ensure that the selection procedures are designed to award supplemental grants under this subpart first to students who receive Pell Grants and meet the requirements of section 484, and then to other eligible students after considering the need of such other students for supplemental grants."; and

    (2) by amending subsection (d) to read as follows:

    "(d) USE OF FUNDS FOR ALL STUDENTS.--Awards made under this subpart shall be made reasonably available (to the extent of available funds) to all eligible students in the institution in need thereof.".

ALLOCATION OF FUNDS
SEC. 415. Section 413D of the Act is amended--
  1. in subsection (a)--
    1. in paragraph (1)--
      1. by striking out "100 percent" and inserting in lieu thereof "95 percent"; and
      2. by striking out "fiscal year 1985" and inserting in lieu thereof "the most recent fiscal year for which data are available";
    2. in paragraph (2)--
      1. in subparagraph (A)--
        1. in the matter preceding clause (i), by striking out "1985" and inserting in lieu thereof "1997"; and
        2. in clause (ii), by striking out "90 percent" and inserting in lieu thereof "95 percent";
      2. in subparagraph (B) --
        1. in the matter preceding clause (i), by striking out "1985" and inserting in lieu thereof "1997"; and
        2. by striking out "90 percent" each place it appears and inserting in lieu thereof "95 percent";
      3. in subparagraph (C) --
        1. in clause (i), by striking out "1986" and inserting in lieu thereof "1998"; and
        2. in the flush language at the end thereof, by striking out "90 percent" and inserting in lieu thereof "95 percent"; and
    3. in paragraph (3)--
      1. in subparagraph (A)--
        1. by striking out the subparagraph designation "(A)"; and
        2. by striking out "paragraph (1) of"; and
      2. by striking out subparagraphs (B) and (C);
  2. by striking out subsection (b) and inserting in lieu thereof the following new subsection:

    "(b) ALLOCATION FORMULA TRANSITION.--Notwithstanding subsection (a), '100 percent' shall be substituted for '95 percent' each place it appears in paragraphs (1) and (2) of such subsection for purposes of determining an institution's allocation under this subpart for the first fiscal year for which the amendments made by [insert name of Act] of 1998 are effective.";

  3. in subsection (c)(1)--

    1. by striking out "three quarters of"; and
    2. by striking "each eligible institution which" and inserting in lieu thereof "each eligible institution that provides at least a 2-year, or 4-year program of instruction, for which the institution awards an associate, or baccalaureate degree, and that";
  4. in subsection (d)(3), by inserting at the end thereof the following new subparagraph:

    "(E) Notwithstanding paragraph (2), the Secretary may use the actual expected family contribution (computed in accordance with part F) for an institution's eligible undergraduate students in lieu of the calculation in paragraph (2)."; and

  5. in subsection (e)(1), by striking out "shall," and everything through the end thereof and inserting in lieu thereof "shall reallocate such excess in accordance with section 442(e)(1).".
FLEXIBLE USE OF FUNDS
SEC. 416. Subpart 3 of part A of title IV of the Act is amended by adding at the end thereof the following new section:
"FLEXIBLE USE OF FUNDS
"SEC. 413E. (a) CARRY-OVER AUTHORITY.--(1) Of the sums granted to an eligible institution under this subpart for any fiscal year, 10 percent may, at the discretion of the institution, remain available for expenditure during the succeeding fiscal year to carry out the program under this subpart.
  1. " Any of the sums so granted to an institution for a fiscal year that are not needed by the institution to award supplemental grants during that fiscal year, and that the institution does not wish to use during the next fiscal year as authorized in paragraph (1), shall remain available to the Secretary for reallocation under section 413D(e) until the close of the second fiscal year after the fiscal year for which such funds were appropriated.
    1. " CARRY-BACK AUTHORITY.-- Up to 10 percent of the allocation that an institution receives from funds appropriated for a fiscal year may be used by the institution for expenditure during the fiscal year preceding the fiscal year for which the sums were appropriated.".
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Last updated: April 3, 2002 by [pss]

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