Laws & Guidance HIGHER EDUCATION
1998 Amendments to the Higher Education Act of 1965
P.L. 105-244

TITLE IV--STUDENT ASSISTANCE

PART G--GENERAL PROVISIONS

SEC. 483. STUDENT ELIGIBILITY

(a) IN GENERAL- Section 484(a) (20 U.S.C. 1091(a)) is amended--

(1) in paragraph (4), by striking `the institution' and everything that follows through `lender), a document' and inserting `the Secretary, as part of the original financial aid application process, a certification,'; and

(2) in paragraph (5), by striking `or a permanent resident of the Trust Territory of the Pacific Islands, Guam, or the Northern Mariana Islands' and inserting `a citizen of any one of the Freely Associated States'.

(b) HOME-SCHOOLED STUDENTS- Section 484(d) is amended--

(1) in the matter preceding paragraph (1), by striking `either'; and

(2) by adding at the end the following:

`(3) The student has completed a secondary school education in a home school setting that is treated as a home school or private school under State law.'.

(c) TERMINATION OF ELIGIBILITY- Section 484(j) is amended to read as follows:

`(j) ASSISTANCE UNDER SUBPARTS 1 AND 3 OF PART A, AND PART C- Notwithstanding any other provision of law, a student shall be eligible until September 30, 2004, for assistance under subparts 1 and 3 of part A, and part C, if the student is otherwise qualified and--

`(1) is a citizen of any one of the Freely Associated States and attends an institution of higher education in a State or a public or nonprofit private institution of higher education in the Freely Associated States; or

`(2) meets the requirements of subsection (a)(5) and attends a public or nonprofit private institution of higher education in any one of the Freely Associated States.'.

(d) CORRESPONDENCE COURSES- Paragraph (1) of section 484(l) is amended to read as follows:

`(1) RELATION TO CORRESPONDENCE COURSES-

`(A) IN GENERAL- A student enrolled in a course of instruction at an institution of higher education that is offered in whole or in part through telecommunications and leads to a recognized certificate for a program of study of 1 year or longer, or a recognized associate, baccalaureate, or graduate degree, conferred by such institution, shall not be considered to be enrolled in correspondence courses unless the total amount of telecommunications and correspondence courses at such institution equals or exceeds 50 percent of the total amount of all courses at the institution.

`(B) REQUIREMENT- An institution of higher education referred to in subparagraph (A) is an institution of higher education--

`(i) that is not an institute or school described in section 521(4)(C) of the Carl D. Perkins Vocational and Applied Technology Education Act; and

`(ii) for which at least 50 percent of the programs of study offered by the institution lead to the award of a recognized associate, baccalaureate, or graduate degree.'.

(e) VERIFICATION OF INCOME DATA- Section 484 is amended by adding at the end the following:

`(q) VERIFICATION OF INCOME DATA-

`(1) CONFIRMATION WITH IRS- The Secretary of Education, in cooperation with the Secretary of the Treasury, is authorized to confirm with the Internal Revenue Service the adjusted gross income, Federal income taxes paid, filing status, and exemptions reported by applicants (including parents) under this title on their Federal income tax returns for the purpose of verifying the information reported by applicants on student financial aid applications.

`(2) NOTIFICATION- The Secretary shall establish procedures under which an applicant is notified that the Internal Revenue Service will disclose to the Secretary tax return information as authorized under section 6103(l)(13) of the Internal Revenue Code of 1986.'.

(f) SUSPENSION OF ELIGIBILITY FOR DRUG-RELATED OFFENSES-

(1) AMENDMENT- Section 484 is amended by adding at the end thereof the following:

`(r) SUSPENSION OF ELIGIBILITY FOR DRUG-RELATED OFFENSES-

`(1) IN GENERAL- A student who has been convicted of any offense under any Federal or State law involving the possession or sale of a controlled substance shall not be eligible to receive any grant, loan, or work assistance under this title during the period beginning on the date of such conviction and ending after the interval specified in the following table:

`If convicted of an offense involving:

The possession of a controlled substance:

Ineligibility period is:

First offense
1 year

Second offense
2 years

Third offense
Indefinite.

The sale of a controlled substance:

Ineligibility period is:

First offense
2 years

Second offense
Indefinite.

`(2) REHABILITATION- A student whose eligibility has been suspended under paragraph (1) may resume eligibility before the end of the ineligibility period determined under such paragraph if--

`(A) the student satisfactorily completes a drug rehabilitation program that--

`(i) complies with such criteria as the Secretary shall prescribe in regulations for purposes of this paragraph; and

`(ii) includes two unannounced drug tests; or

`(B) the conviction is reversed, set aside, or otherwise rendered nugatory.

`(3) DEFINITIONS- In this subsection, the term `controlled substance' has the meaning given the term in section 102(6) of the Controlled Substances Act (21 U.S.C. 802(6)).'.

(2) EFFECTIVE DATE- The amendment made by paragraph (1), regarding suspension of eligibility for drug-related offenses, shall apply with respect to financial assistance to cover the costs of attendance for periods of enrollment beginning after the date of enactment of this Act.

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Last Modified: 09/25/2003