Archived Information

Reauthorization of the Higher Education Act


Title IV--Student Financial Assistance

PART A--GRANTS TO STUDENTS

SEC. 400. Section 400 of the Act is amended--

(1) in subsection (a)--

(A) in paragraph (1), by striking out "basic educational opportunity grants" and inserting in lieu thereof "Federal Pell Grants";

(B) in paragraph (2), by adding "and" at the end thereof;

(C) by striking out paragraphs (3) and (5);

(D) in paragraph (4), by striking out the semicolon and "and" at the end thereof and inserting in lieu thereof a period; and

(E) by redesignating paragraph (4) as paragraph (3); and

(2) in subsection (b), by striking out "subparts 1 through 8," and inserting in lieu thereof "subparts 1 through 5,".

SUBPART 1--PELL GRANTS

AMENDMENTS TO PELL GRANTS

SEC. 401. (a) The heading for subpart 1 of part A of title IV of the Act is amended to read as follows: "FEDERAL PELL GRANTS".

(b) Section 401 of the Act is amended--

(1) in the heading thereof, by striking out "BASIC EDUCATIONAL OPPORTUNITY" and inserting in lieu thereof "FEDERAL PELL";

(2) in subsection (a)--

(A) by amending paragraph (1) to read as follows:

"(1) The Secretary shall, through September 30, 2003, provide such sums as may be necessary to eligible institutions for the award of Federal Pell Grants under this section to eligible students (as defined in section 484) attending such institutions as undergraduates.";

(B) in paragraph (2), by striking out "the disbursement system required by" and inserting in lieu thereof "the disbursement of Federal Pell Grants to students as described in"; and

(C) by striking out paragraph (3);

(3) by amending subsection (b) to read as follows:

"(b) AMOUNT OF FEDERAL PELL GRANTS.--(1)(A) Except as provided in paragraphs (2), (3), (4), and (5), the amount of the Federal Pell Grant that may be awarded to an eligible student for an academic year shall be the amount remaining after subtracting the student's expected family contribution for that year, as determined under part F, from the maximum Federal Pell Grant established for that academic year, as described in subparagraph (B).

"(B) The maximum Federal Pell Grant shall be--

"(i) $3,100 for academic year 1999-2000; and

"(ii) established for succeeding academic years in the applicable appropriations Act, and subject to such other eligibility factors as may be established in such Act.

"(2) If the maximum Federal Pell Grant established for an academic year exceeds $2,400, the amount of the Federal Pell Grant that may be awarded to an eligible student for that academic year shall be the lesser of--

"(A) the amount determined under paragraph (1); or

"(B) the sum of--

"(i) $2,400;

"(ii) 50 percent of the difference between $2,400 and the maximum Federal Pell Grant established for that academic year; and

"(iii) the lesser of--

"(I) the remaining 50 percent of the difference between $2,400 and the maximum Federal Pell Grant established for that academic year; or

"(II) the sum of the student's tuition, fees, and, if the student has dependent care expenses (as defined in section 472(7)) or disability-related expenses (as defined in section 472(8)), an allowance determined by the institution in accordance with each such definition.

"(3) If a student attends an institution of higher education on less than a full-time basis during any academic year, the amount of the Federal Pell Grant that the student may be awarded for that year shall be reduced to reflect the degree to which the student is attending the institution on a part-time basis, in accordance with a schedule of reductions established by the Secretary.

"(4) In no case may a student be awarded a Federal Pell Grant that, as calculated under this subsection, exceeds the difference between a student's cost of attendance (as defined in section 472) and his or her expected family contribution (as determined under part F).

"(5) A student who is eligible for a Federal Pell Grant that is equal to, or greater than, $200, but less than $400, shall be awarded a Federal Pell Grant of $400. If a student is eligible for a Federal Pell Grant that is less than $200, the student shall not be awarded a Federal Pell Grant for that academic year.

"(6) The Secretary may allow, on a case-by-case basis, a student to be awarded two Federal Pell Grants during a single award year, if--

"(A) the student is enrolled at an eligible institution on a full-time basis in an associate or baccalaureate degree program of study that is 2 years or longer and computed in credit hours; and

(B) the student completes course work toward completion of an associate or baccalaureate degree that exceeds the requirements for a full academic year as defined by the institution.

"(7) If a student is incarcerated in a Federal or State penal institution, the student shall not be awarded a Federal Pell Grant.";

(4) in subsection (c)--

(A) by amending paragraph (1) to read as follows:

"(1)(A) Except as provided in subparagraph (B), the period during which a student may receive Federal Pell Grants at an institution shall not exceed 150 percent of the period normally required by a full-time student (or the equivalent period, in the case of a part-time student) to complete the course of study in which the student is enrolled, as determined by the instititution.

"(B)(i) Except as provided in clause (ii), in no case may a student receive Federal Pell Grants for more than eight academic years of full-time study (or the equivalent period of part-time study) in the aggregate.

"(ii) A student may receive grants for more than eight academic years of full-time study (or the equivalent period of part-time study) in the aggregate to the extent the institution in which the student is enrolled determines necessary to accommodate the rights of students with disabilities under section 504 of the Rehabilitation Act of 1973."; and

(B) in paragraph (2)--

(i) by inserting immediately after the paragraph designation the subparagraph designation "(A)";

(ii) in the first sentence therein--

(I) by striking out "Nothing" and inserting in lieu thereof "Except as provided in subparagraph (B), nothing";and

(II) by striking out "certificate" and all that follows through the end thereof and inserting in lieu thereof "certificate.";

(iii) by striking out the second sentence therein; and

(iv) by adding at the end thereof the following new subparagraph:

"(B)(i) A student may receive a Federal Pell Grant to attend English language instruction that is a separate course of study only if--

"(I) students enrolled in such a course are required to take an independently administered standardized test of English language proficiency upon completion of the course; and

"(II) not less than a minimum percentage of such students achieve a passing score on that test.

"(ii) The Secretary shall specify in regulation one or more standardized tests of English language proficiency, the minimum percentage of students who must achieve a passing score, and such other requirements as the Secretary determines are necessary to implement clause (i).";

(5) by striking out subsection (d);

(6) in subsection (e), by striking out the second and third sentences therein;

(7) by striking out subsection (f); and

(8) by redesignating subsections (e), (g), (h) and (i) as subsections (d), (e), (f), and (g), respectively.

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Last updated: May 31, 2002 by [pss]

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