Section 1070 · Statement of purpose; program authorization

Prior Provisions

A prior section 1070, Pub. L. 89 329, title IV, §401, as added and amended Pub. L. 92 318, title I, §131(b)(1), title X, §1001(c)(1), (2), June 23, 1972, 86 Stat. 247, 381; Pub. L. 94 482, title I, §125, Oct. 12, 1976, 90 Stat. 2096; Pub. L. 96 374, title IV, §401, title XIII, §1391(a)(1), Oct. 3, 1980, 94 Stat. 1401, 1503, stated purpose of program of grants to students in attendance at institutions of higher education, prior to the general revision of this part by Pub. L. 99 498.

Community School Partnerships

Pub. L. 103 382, title V, part B, Oct. 20, 1994, 108 Stat. 4045, provided that:

“SEC. 521. SHORT TITLE.

“This part may be cited as the ‘Community School Partnership Act’.

“SEC. 522. FINDINGS.

“The 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 being 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 area 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. 523. DEFINITIONS.

“As used in this part:

“(1) Area program center.—The term ‘area program center’ means an organization that—

“(A) is part of, responsible to, and overseen by, the national organization; and

“(B) is staffed by professionals trained to create, develop, and sustain local affiliated chapters in towns, cities, and neighborhoods.

“(2) Local affiliated chapter.—The term ‘local affiliated chapter’ means an organization that—

“(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 described in paragraph (3));

“(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, 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 in awarding scholarships to students from low-income families in the local community.

“(3) National organization.—The term ‘national organization’ means an organization that—

“(A) has the capacity to create, develop and sustain local affiliated chapters;

“(B) has the capacity to sustain newly created local affiliated chapters in towns, cities, and neighborhoods through ongoing training and support programs;

“(C) 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;

“(D) is a publicly supported organization within the meaning of section 170(b)(1)(A)(vi) of such Code [26 U.S.C. 170(b)(1)(A)(vi)];

“(E) ensures that each of its local affiliated chapters 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 its scholarship and academic support activities.

“(4) High-poverty area.—The term ‘high-poverty area’ means a community with a higher percentage of children in poverty than the national average of such percentage.

“(5) Students from low-income families.—The term ‘students from low-income families’ means students determined, pursuant to part F of title IV of the Higher Education Act of 1965 [20 U.S.C. 1087kk et seq.], to be eligible for a Federal Pell Grant under subpart 1 of part A of title IV of such Act [20 U.S.C. 1070a et seq.].

“SEC. 524. PURPOSE; ENDOWMENT GRANT AUTHORITY.

“(a) Purpose.—It is the purpose of this part to establish and support area program centers to enable such centers to foster the development of local affiliated chapters in high-poverty areas that promote higher education goals for students from low-income families by—

“(1) providing academic support, including guidance, counseling, mentoring, tutoring, and recognition; and

“(2) providing scholarship assistance for the pursuit of postsecondary education.

“(b) Endowment Grant Authority.—From the funds appropriated pursuant to the authority of section 527, the Secretary shall award an endowment grant, on a competitive basis, to a national organization to enable such organization to support the establishment or ongoing work of area program centers that foster the development of local affiliated chapters in high-poverty areas to improve high school graduation rates and postsecondary attendance through the provision of academic support services and scholarship assistance for the pursuit of postsecondary education.

“SEC. 525. GRANT AGREEMENT AND REQUIREMENTS.

“(a) In General.—The Secretary shall award the endowment grant described in section 524(b) pursuant to an agreement between the Secretary and the national organization. Such agreement shall—

“(1) require the 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 the national organization to use 25 percent of the interest income from the endowment fund in any fiscal year to provide scholarships for students from low-income families, which scholarships shall be matched on a dollar-for-dollar basis from funds raised by local affiliated chapters;

“(3) require the national organization to use 75 percent of the interest income from the endowment fund in any fiscal year to support the establishment or ongoing work of area program centers to enable such centers to work with local communities to establish local affiliated chapters in high-poverty areas and provide ongoing technical assistance, training workshops, and other activities to help ensure the ongoing success of the local affiliated chapters;

“(4) require the area program centers supported by the national organization to give priority to establishing local affiliated chapters that serve high-poverty areas;

“(5) require the national organization to submit, in 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 from the interest on the endowment fund during the five succeeding fiscal years;

“(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 received scholarships from local affiliated chapters, 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;

“(7) require that, in order to continue using the interest from the endowment fund, the national organization will meet the continuing eligibility requirements described in section 526; and

“(8) 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) Returned Funds.—All funds returned to the Secretary pursuant to subsection (a)(8) shall be available to the Secretary to carry out any scholarship or grant program assisted under title IV of the Higher Education Act of 1965 [20 U.S.C. 1070 et seq.; 42 U.S.C. 2751 et seq.].

“SEC. 526. CONTINUING ELIGIBILITY.

“The national organization shall be eligible to continue to use the interest from the endowment fund in accordance with the provisions of this part in the third and each such succeeding fiscal year in which such organization uses such interest only if the local affiliated chapters associated with all area program centers supported under this part distribute to students from low-income families 80 percent of the total amount of funds raised by all such chapters in such year.

“SEC. 527. AUTHORIZATION OF APPROPRIATIONS.

“There are authorized to be appropriated $10,000,000 for fiscal year 1996 to carry out this part.”

Study of Federal Benefit Coordination

Section 1405 of Pub. L. 102 325 directed Secretary of Education to conduct a study to evaluate the coordination of Federal student financial assistance programs under title IV of the Higher Education Act of 1965 [20 U.S.C. 1070 et seq.; 42 U.S.C. 2751 et seq.] with other programs funded in whole or in part with Federal funds, with Secretary to prepare and submit to appropriate committees of Congress a report on the study not later than 3 years after July 23, 1992, together with such recommendations as the Secretary deemed appropriate.

Olympic Scholarships

Section 1543 of Pub. L. 102 325 provided that:

“(a) Scholarships Authorized.—

“(1) In general.—The Secretary of Education is authorized to provide financial assistance to the United States Olympic Education Center or the United States Olympic Training Center to enable such centers to provide financial assistance to athletes who are training at such centers and are pursuing postsecondary education at institutions of higher education (as such term is defined in section 481(a) of the Higher Education Act of 1965 [20 U.S.C. 1088(a)]).

“(2) Award determination.—The amount of financial assistance provided to athletes described in paragraph (1) shall be determined in accordance with such athlete's financial need as determined in accordance with part F of title IV of the Higher Education Act of 1965 [20 U.S.C. 1087kk et seq.].

“(b) Eligibility.—The Secretary of Education shall ensure that financial assistance provided under this part [part E (§1543) of Pub. L. 102 325] is available to both full-time and part-time students who are athletes at centers described in subsection (a).

“(c) Application.—Each center desiring financial assistance under this section shall submit an application to the Secretary of Education at such time, in such manner and accompanied by such information as the Secretary may reasonably require.

“(d) Authorization of Appropriations.—There are authorized to be appropriated $5,000,000 for fiscal year 1993 and such sums as may be necessary for each of the 4 succeeding fiscal years to carry out this section.”

Persian Gulf Conflict Higher Education Assistance

Pub. L. 102 26, §§4 6, Apr. 9, 1991, 105 Stat. 125 127, provided that:

“SEC. 4. OPERATION DESERT SHIELD/DESERT STORM WAIVER AUTHORITY.

“(a) Purpose.—It is the purpose of this section to ensure that—

“(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) Waiver Requirement.—Notwithstanding any other provision of law, unless enacted with specific reference to this section, the Secretary of Education shall waive or modify any statutory or regulatory provision applicable to the student financial aid programs under title IV of the Act that the Secretary deems necessary to achieve the purposes stated in subsection (a), including—

“(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) Notice of Waiver.—Notwithstanding section 431 [now 437] of the General Education Provisions Act (20 U.S.C. 1232) and section 553 of title 5, United States Code, the Secretary shall, by notice in the Federal Register, publish the waivers or modifications of statutory and regulatory provisions the Secretary deems necessary to achieve the purposes of this section. Such notice shall include the terms and conditions to be applied in lieu of such statutory and regulatory provisions. The Secretary is not required to exercise the waiver or modification authority under this section on a case-by-case basis.

“(d) Definitions.—For purposes of this Act [probably should be “section”]—

“(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) Sense of Congress.—It is the sense of the Congress that all institutions offering postsecondary education should provide a full refund to any member or Reserve of an Armed Force on active duty service in connection with Operation Desert Shield or Operation Desert Storm for that portion of a period of instruction such individual was unable to complete, or for which such individual did not receive academic credit, because he or she was called up for such service. For purposes of this section, a full refund includes a refund of required tuition and fees, or a credit in a comparable amount against future tuition and fees.

“(b) Encouragement and Report.—The Secretary of Education shall encourage institutions to provide such refunds or credits, and shall report to the appropriate committees of Congress on the actions taken in accordance with this subsection as well as information he receives regarding any institutions that are not providing such refunds or credits.

“SEC. 6. TERMINATION OF AUTHORITY.

“The provisions of sections 4 and 5 shall cease to be effective on September 30, 1997.”

Pub. L. 102 25, title III, part E (§§371 376), Apr. 6, 1991, 105 Stat. 93, provided that:

“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 Pub. L. 102 26, set out above.]

“SEC. 373. [Superseded by section 5 of Pub. L. 102 26, set out above.]

“SEC. 374. [Amended section 294d of Title 42, The Public Health and Welfare.]

“SEC. 375. [Superseded by section 6 of Pub. L. 102 26, set out above.]

“SEC. 376. COORDINATION WITH OTHER LAW

“If the Higher Education Technical Amendments of 1991 [Pub. L. 102 26, see Short Title of 1991 Amendment note set out under section 1001 of this title] is enacted, the provisions of sections 4, 5, and 6 of that Act shall supersede sections 372, 373, and 375.”