agreements with institutions—conditions

agreements with institutions—conditions Sec. 407. (a) An institution of higher education which desires to obtain funds for educational opportunity grants under this part, shall enter into an agreement with the Commissioner. Such agreement shall— (1) provide that funds received by the institution under this part, will be used by it. only for the purposes specified in, and in accordance with, the provisions of this part; (2) provide that in determining whether an individual meets the requirements of section 404(b) (3) the institution will (A) 79 Stat. 1235consider the source of such individual’s income and that of any individual or individuals upon whom the student relies primarily for support, and (B) make an appropriate review of the assets of the student and of such individuals; (3) provide that, the institution, in cooperation with other institutions of higher education where appropriate, will make vigorous efforts to identify qualified youths of exceptional financial need and to encourage them to continue their education beyond secondary school through programs and activities such as— (A) establishing or strengthening close working relationships with secondary-school principals and guidance and counseling personnel with a view toward motivating students to complete secondary school and pursue post-secondary-school educational opportunities, and (B) making, to the extent feasible, conditional commitments for educational opportunity grants to qualified secondary school students with special emphasis on students enrolled in grade 11 or lower grades who show evidences of academic or creative promise; (4) provide assurance that the institution will continue to spend in its own scholarship and student-aid program, from sources other than funds received under this part, not Jess than the average expenditure per year made for that purpose, during the most recent period of three fiscal years preceding the effective date of the agreement: (5) include provisions designed to make educational opportunity grants under this part reasonably available (to the extent of available funds) to all eligible students in the institution in need thereof; and (6) include such other provisions as may be necessary to protect the financial interest of the United States and promote the purposes of this part. (b) (1) An institution, which has in effect an agreement for Federal capital contributions for a student loan fund pursuant, to title II of the National Defense Education Act of 1958, may use, as an additional Federal capital contribution for the purposes of such loan fund, not to exceed 25 per centum of the fluids paid to it for any fiscal year ending prior to July 1, 1970, for the purpose set. forth in section 401(b). The requirement in section 204(2) (B) of such Act shall not apply to such a Federal capital contribution. (2) For the purpose of making payments from amounts appropriated pursuant to the third sentence of section 401(b), any institution electing for any fiscal year to use an amount of its payment as a Federal capital contribution pursuant to paragraph (1) shall be paid an equal amount for each of the succeeding three fiscal years from such amounts appropriated pursuant to such third sentence, if the amount so paid to the institution for each such year is used by such institution as such a Federal capital contribution.