revision of part a of title iv (educational opportunity grants)

revision of part a of title iv (educational opportunity grants) Sec. 131. (a) (1) (A) The first sentence of section 401(b) of the Higher Education Act of 1965 is amended by striking out that part which precedes “to enable the Commissioner” and inserting in lieu thereof: “There are hereby authorized to be appropriated $170,000,000 for the fiscal year ending June 30, 1972, and $200,000,000 for each of the succeeding fiscal years ending prior to July 1, 1975,”. (B) Section 408 of such Act is amended by striking out “for the fiscal year ending June 30, 1971” and inserting in lieu thereof “for each of the succeeding fiscal years ending prior to June 30, 1975”. (2) The amendments made by paragraph (1) shall be effective after June 30, 1971. (b) (1) Part A of title IV of such Act is amended to read as follows: “Part A— Grants to Students in Attendance at Institutions of Higher Education “statement of purpose; program authorization “Sec. 401. (a) It is the purpose of this part, to assist in making available the benefits of post secondary education to qualified students in institutions of higher education by— “(1) providing basic educational opportunity grants (hereinafter referred to as ‘basic grants’) to all eligible students; 86 Stat. 248 “(2) providing supplemental educational opportunity grants (hereinafter referred to as ‘supplemental grants’) to those students of exceptional need who, for lack of such a grant, would be unable to obtain the benefits of a postsecondary education; “(3) providing for payments to the States to assist them in making financial aid available to such students; and “(4) providing for special programs and projects designed (A) to identify and encourage qualified youths with financial or cultural need with a potential for postsecondary education, (B) to prepare students from low-income families for postsecondary education, and (C) to provide remedial (including remedial language study) and other services to students. “(b) The Commissioner shall, in accordance with subparts 1, 2, 3, and 4, carry out programs to achieve the purposes of this part. “Subpart 1— Basic Educational Opportunity Grants “basic educational opportunity grants: amount and determinations; applications “Sec. 411. (a) (1) The Commissioner shall, during the period beginning July 1, 1972, and ending June 30, 1975, pay to each student who has been accepted for enrollment in, or is in good standing at, an institution of higher education (according to the prescribed standards, regulations, and practices of that institution) for each academic year during which that student is in attendance at that institution, as an undergraduate, a basic grant in the amount for which that student is eligible, us determined pursuant to paragraph (2). “(2) (A) (i) The amount of the basic grant for a student eligible under this subpart for any academic year shall be $1,400, less an amount equal to the amount determined under paragraph (3) to be the expected family contribution with respect to that student for that year. “(ii) In any case where a student attends an institution of higher education on less than a full-time basis during any academic year, the amount of the basic grant to which that student is entitled shall be reduced in proportion to the degree to which that student is not so attending on a full-time basis, in accordance with a schedule of reductions established by the Commissioner for the purposes of this division. Such schedule of reductions shall be established by regulation and published in the Federal Register not later than February 1 of each year. “(B) (i) The amount of a basic grant to which a student is entitled under this subpart for any academic year shall not exceed 50 per centum of the actual cost of attendance at the institution at which the student is in attendance for that year. “(ii) No basic grant under this subpart shall exceed the difference between the expected family contribution for a student and the actual cost of attendance at the institution at which that student is in attendance. If with respect to any student, it is determined that the amount of a basic grant plus the amount of the expected family contribution for that student exceeds the actual cost of attendance for that year, the amount of the basic grant shall be reduced until the combination of expected family contribution and the amount of the basic grant does not exceed the actual cost of attendance at such institution. “(iii) No basic grant shall be awarded to a student under this subpart if the amount of that grant for that student as determined under this paragraph for any academic year is less than $200. Pursuant to criteria established by the Commissioner by regulation, the institution of higher education at which a student is in attendance may award a86 Stat. 249 basic grant of less than $200 upon a determination that the amount of the basic grant for that student is less than $200 because of the requirement of division (i) and that, due to exceptional circumstances, this reduced grant should be made in order to enable the student to benefit from postsecondary education. “(iv) For the purpose of this subparagraph and subsection (b) the term ‘actual cost of attendance’ means, subject to regulations of the Commissioner, the actual per-student charges for tuition, fees, room and board (or expenses related to reasonable commuting), books, and an allowance for such other expenses as the Commissioner determines by regulation to be reasonably related to attendance at the institution at which the student is in attendance. “(3) (A) (i) Not later than February 1 of each year the Commissioner shall publish in the Federal Register a schedule of expected family contributions for the succeeding academic year for various levels of family income, which, except as is otherwise provided in division (ii), together with any amendments thereto, shall become effective July 1 of that year. During the thirty-day period following such publication the Commissioner shall provide interested parties with an opportunity to present their views and make recommendations with respect to such schedule. “(ii) The schedule of expected family contributions required by division (i) for each academic year shall be submitted to the President of the Senate and the Speaker of the House of Representatives not later than February 1 of that year. If either the Senate or the House of Representatives adopts, prior to May 1 of such year, a resolution of disapproval of such schedule, the Commissioner shall publish a new schedule of expected family contributions in the Federal Register not later than fifteen days after the adoption of such resolution of disapproval. Such new schedule shall take into consideration such recommendations as may be made in connection with such resolution and shall become effective, together with any amendments thereto, on July 1 of that year. “(B) (i) For the purposes of this paragraph and subsection (b), the term ‘family contribution’ with respect to any student means the amount which the family of that student may be reasonably expected to contribute toward his postsecondary education for the academic year for which the determination under subparagraph (A) of paragraph (2) is made, as determined in accordance with regulations. In promulgating such regulations, the Commissioner shall follow the basic criteria set forth in division (ii) of this subparagraph. “(ii) The basic criteria to be followed in promulgating regulations with respect to expected family contribution are as follows: “(I) The amount of the effective income of the student or the effective family income of the student’s family. “(II) The number of dependents of the family of the student. “(III) The number of dependents of the student’s family who are in attendance in a program of postsecondary education and for whom the family may be reasonably expected to contribute for their postsecondary education. “(IV) The amount of the assets of the student and those of the student’s family. “(V) Any unusual expenses of the student or his family, such as unusual medical expenses, and those which may arise from a catastrophe. “(iii) For the purposes of clause (I) of division (ii), the term ‘effective family income’ with respect to a student means the annual adjusted family income, as determined in accordance with regulations prescribed by the Commissioner, received by the parents or guardian86 Stat. 250 of that student (or the person or persons having an equivalent relationship to such student) minus Federal income tax paid or payable with respect to such income. “(iv) In determining the expected family contribution with respect to any student, any amount paid under the Social Security Act to, or on account of, the student which would not be paid if he were not a student, and one-half any amount paid the student under chapters 34 and 35 of title 38, United States Code, shall be considered as effective income for such student. “(C) The Commissioner shall promulgate special regulations for determining the expected family contribution and effective family income of a student who is determined (pursuant to regulations of the Commissioner) to be independent of his parents or guardians (or the person or persons having an equivalent relationship to such student). Such special regulations shall be consistent with the basic criteria set forth in division (ii) of subparagraph (B). “(4) (A) The period during which a student may receive basic grants shall be the period required for the completion of the undergraduate course of study being pursued by that student at the institution at which the student is in attendance, except that such period may not exceed four academic years unless— “(i) the student is pursuing a course of study leading to a first degree in a program of study which is designed by the institution offering it to extend over five academic years; or “(ii) the student is, or will be, mi able to complete a course of study within four academic years because of a requirement of the institution of such course of study that the student enroll in a noncredit remedial course of study; in either which case such period may be extended for not more than one additional academic year. “(B) For the purposes of clause (ii) of subparagraph (A), a ‘non-credit remedial course of study’ is a course of study for which no credit is given toward an academic degree, and which is designed to increase the ability of the student to engage in an undergraduate course of study leading to such a degree. “(b) (1) The Commissioner shall from time to time set dates by which students must file applications for basic grants under this subpart. “(2) Each student desiring a basic grant for any year must file an application therefor containing such information and assurances as the Commissioner may deem necessary to enable him to carry out his functions and responsibilities under this subpart. “(3) (A) Payments under this section shall be made in accordance with regulations promulgated by the Commissioner for such purpose, in such manner as will best accomplish the purposes of this section. “(B) (i) If, during any period of any fiscal year, the funds available for payments under this subpart are insufficient to satisfy fully all entitlements under this subpart, the amount paid with respect to each such entitlement shall be— “(I) in the case of any entitlement which exceeds $1,000,75 per centum thereof; “(II) in the case of any entitlement which exceeds $800 but does not exceed $1,000,70 per cent tun thereof; “(III) in the case of any entitlement which exceeds $600 but does not exceed $800,65 per centum thereof; and “(IV) in the case of any entitlement which does not exceed $600, 50 per centum thereof. “(ii) If, during any period of any fiscal year, funds available for making payments under this subpart exceed the amount necessary to86 Stat. 251 make the payments prescribed in division (i), such excess shall be paid with respect, to each entitlement under this subpart in proportion to the degree to which that entitlement is unsatisfied, after payments are made pursuant to division (i). “(iii) In the event that, at the time when payments are to be made pursuant to this subparagraph (B), funds available therefor are insufficient to pay the amounts set forth in division (i), the Commissioner shall pay with respect to each entitlement an amount which bears the same ratio to the appropriate amount set forth in division (i) as the total amount of funds so available at such time for such payments bears to the amount necessary to pay the amounts indicated in division (i) in full. “(iv) No method of computing or manner of distribution of payments under this subpart shall be used which is not consistent with this subparagraph. “(v) In no case shall a payment under this subparagraph be made if the amount of such payment after application of the provisions of this subparagraph is less than $50. “(C) (i) During any fiscal year in which the provisions of subparagraph (B) apply, a basic grant to any student shall not exceed 50 per centum of the difference between the expected family contribution for that student and the actual cost of attendance at the institution in which the student is enrolled, unless sums available for making payments under this subsection for any fiscal year equal more than 75 per centum of the total amount to which all students are entitled under this subpart for that fiscal year, in which case no basic grant shall exceed 60 per centum of such difference. “(ii) The limitation set forth in division (i) shall, when applicable, be in lieu of the limitation set forth in subparagraph (B)(i) of subsection (a)(2). “(4) No payments may be made on the basis of entitlements established under this subpart during any fiscal year ending prior to July 1, 1975, in which— “(A) the appropriation for making grants under subpart 2 of this part does not at least equal $130,093,000; and “(B) the appropriation for work-study payments under section 441 of this title does not at least equal $237,400,000; and “(C) the appropriation for capital contributions to student loan fluids under part E of this title does not at least equal $286,000,000. “Subpart 2— Supplemental Educational Opportunity Grants “purpose; appropriations authorized “Sec. 413A. (a) It is the purpose of this subpart, to provide, through institutions of higher education, supplemental grants to assist in making available the benefits of postsecondary education to qualified students who, for lack of financial means, would be unable to obtain such benefits without such a grant. “(b) (1) For the purpose of enabling the Commissioner to make-payments to institutions of higher education which have made agreements with the Commissioner in accordance with section 413C(b), for use by such institutions for payments to undergraduate students for the initial academic year of a supplemental grant awarded to them under this subpart, there are authorized to be appropriated $200,000,090 for the fiscal year ending June 30, 1973, and for each of the succeeding fiscal years ending prior to July 1, 1975. Funds appropriated pursuant to this paragraph shall be appropriated separate from any funds appropriated pursuant to paragraph (2). 86 Stat. 252 “(2) In addition to the sums authorized to be appropriated by paragraph (1), there are authorized to be appropriated such sums as may be necessary for payment to institutions of higher education for use by such institutions for making continuing supplemental grants under tins subpart, except that no appropriation may be made pursuant to this paragraph for any fiscal year beginning more than three years after the last fiscal year for which an appropriation is authorized under paragraph (1). Funds appropriated pursuant to this paragraph shall be appropriated separate, from any funds appropriated pursuant to paragraph (1). “(3) Sums appropriated pursuant to this subsection for any fiscal Sir shall be available for payments to institutions until the end of the fiscal year succeeding the fiscal year for which they were appropriated. “(4) For the purposes of this subsection, payment for the first year of a supplemental grant shall not be considered as an initial year payment if the grant was awarded for the continuing education of a student who— “(A) had been previously awarded a supplemental grant under this subpart (whether by another institution or otherwise), and “(B) had received payment for any year of that supplemental grant. “amount and duration of grants “Sec. 413B. (a) (1) From the funds received by it for such purpose under this subpart, an institution which awards a supplemental grant to a student for an academic year under this subpart shall, for such year, pay to that student an amount determined pursuant to paragraph (2). “(2) (A) (i) The amount of the payment to any student pursuant to paragraph (1) shall be equal to the amount determined by the institution to lie needed by that student to enable him to pursue a course of study at the institution, except that such amount shall not exceed— “(I) $1,500, or “(II) one-half the sum of the total amount of student financial aid provided to such student by such institution, whichever is the lesser. “(ii) No student shall be paid during all the academic years he is pursuing his undergraduate course of study at one or more institutions of higher education in excess of $4,000 or in the case of any student to whom the provisions of subsection (b)(1)(B) apply, $5,000. “(iii) For the purposes of clause (II) of division (i), the term ‘student financial aid’ includes assistance payments to the student under subpart 1 of this part and parts C and E of this title, and any assistance provided to a student under any scholarship program established by a State or a private institution or organization, as determined in accordance with regulations, shall be deemed to be aid provided such student, by the institution. “(B) If the amount determined under division (i) of subparagraph (A) with respect to a student for any academic year is less than $200, no payment shall be made to that student for that year. “(C) Subject to subparagraphs (A) and (B), the Commissioner shall prescribe, for the guidance of institutions, basic criteria and schedules for the determination of the amount of need to be determined under division (i) of subparagraph (A). Such criteria and schedules shall take into consideration the objective of limiting assistance under this subpart to students of financial need, and such other factors related to determining the need of students for financial assistance as the Commissioner deems relevant but such criteria or schedules shall not disqualify an applicant on account of his earned income if income from other sources in the amount of such earned income would not disqualify him. 86 Stat. 253 “(b) (1) (A) A student eligible for a supplemental grant may be awarded such a grant under this subpart for each academic year of the period required for completion by the recipient of his undergraduate course of study in the institution of higher education from which he received such grant. “(B) A student may not receive supplemental grants under this subpart for a period of more than four academic years, except that in the case of a student— “(i) who is pursuing a course of study leading to a first degree in a program of study which is designed by the institution offering it to extend over five academic years, or “(ii) who is because of his particular circumstances determined by the institution to need an additional year to complete a course of study normally requiring four academic years, such period may be extended for not more than one additional academic year. “(2) A supplemental grant awarded under this subpart shall entitle the student to whom it is awarded to payments pursuant to such grant only if— “(A) that student is maintaining satisfactory progress in the course of study he is pursuing, according to the standards and practice of the institution awarding the grant, and “(B) that student is devoting at least half-time to that course of study, during the academic year, in attendance at that institution. Failure to be in attendance at the institution during vacation periods or periods of military service, or during other periods during which the Commissioner determines, in accordance with regulations, that there is good cause for his non attendance, shall not render a student ineligible for a supplemental grunt; but no payments may be made to a student during any such period of failure to he in attendance or period of nonattendance. “selection of recipients; agreements with institutions “Sec. 413C. (a) (1) An individual shall be eligible for the award of a supplemental grant under this subpart by an institution of higher education which has made an agreement with the (Commissioner pursuant to subsection (b), if the individual makes application at the time and in the manner prescribed by that institution, in accordance with regulations of the Commissioner. “(2) From among those who are eligible for supplemental grants through an institution which has an agreement with the Commissioner under subsection (b) for each fiscal year, the institution shall, in accordance with such agreement under subsection (b), and within the amount allocated to the institution for that purpose for that year under section 413D(b) select individuals who are to be awarded such grants and determine, in accordance with section 413B, the amounts to be paid to them. An institution shall not award a supplemental grant to an individual unless it determines that “(A) he has been accepted for enrollment as an undergraduate student at such institution or, in the case of a student already attending such institution, is in good standing there as an undergraduate; “(B) he shows evidence of academic or creative promise and capability of maintaining good standing in this course of study; “(C) he is of exceptional financial need; and “(D) he would not, but for a supplemental grant, be financially able to pursue a course of study at such institution. 86 Stat. 254 For the purposes of clause (C) of this paragraph, in determining financial need, the expected family contribution shall be considered to be the contribution expected in the specific circumstances of the student as determined by the student financial aid officer at the institution in accordance with criteria promulgated by the Commissioner. Any calculation of the ability of a family to contribute shall include consideration of (i) family assets which should reasonably be available for such purpose, (ii) the number of children in the family, (iii) the number of children attending institutions of higher education, (iv) any catastrophic illness in the family, (v) any educational expenses of other dependent children in the family, and (vi) other circumstances affecting the student’s financial need. “(b) An institution of higher education which desires to obtain funds for supplemental grants under this subpart shall enter into an agreement with the Commissioner. Such agreement shall— “(1) provide that funds received by the institution under this subpart will be used by it solely for the purposes specified in, and in accordance with, the provisions of this subpart and of section 463; “(2) provide that, in determining whether an individual meets the requirements of clause (C) of paragraph (2) of subsection (a), the institution will— “(A) consider the source of such individual’s income and that of any individual or individuals upon whom he relies primarily for support, and “(B) make appropriate review of the assets of the student and of such individuals; “(3) provide that the institution, in cooperation with other eligible institutions 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 such programs and activities 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 to pursue postsecondary school educational opportunities, and “(B) making, to the extent feasible, conditional commitments for student financial aid by such institution to qualified secondary school students, who but for such grants would be unable to obtain the benefits of higher education, with special emphasis on students enrolled in grade 11 or lower grades who show’ evidences of academic or creative promise; “(4) provide that the institution will meet the requirements of section 464; “(5) include provisions designed to make grants under this subpart reasonably available, to the extent of available funds, to all eligible students in attendance at the institution; “(6) include such other provisions as may be necessary to protect the financial interest of the United States and promote the purposes of this subpart. “apportionment and allocation of funds “Sec. 413D. (a) (1) (A) From 90 per centum of the sums appropriated pursuant to section 413A (b)(1) for any fiscal year, the Commissioner shall apportion to each State an amount which bears the same ratio to such sums as the number of persons enrolled full-time and the full-time equivalent of the number of persons enrolled part time in institutions of higher education in such State bears to the total number86 Stat. 255 of such persons in all the States. The remainder of the sums so appropriated shall be apportioned among the States by the Commissioner in accordance with equitable criteria which he shall establish and which shall be designed to achieve a distribution of the sums so appropriated among the States which will most effectively carry out the purpose of this subpart, except that where any State’s apportionment under the first sentence for a fiscal year is less than its allotment under the first sentence of section 401(b) of this Act for the fiscal year ending June 30, 1972, before he makes any other apportionments under this sentence, the Commissioner shall apportion sufficient additional sums to such State under this sentence to make the State’s apportionment for that year under this paragraph equal to its allotment for the fiscal year ending June 30, 1972, under such first sentence. Sums apportioned to a State wider the preceding sentence shall be consolidated with, and become a part of, its apportionment, from the same appropriation wider the first sentence of this paragraph. “(B) If the Commissioner determines that the sums apportioned to any State under subparagraph (A) for any fiscal year exceed the aggregate of the amounts that he determines to be required under subsection (b) for that fiscal year for institutions of higher education in that State, the Commissioner shall reapportion such excess, from time to time, on such date or dates as he shall fix, to other States in such manner as the Commissioner determines will best assist in achieving the purposes of this subpart. “(2) Sums appropriated pursuant to section 413A(b)(2) for any fiscal year shall be apportioned among the States in such manner as the Commissioner determines will best achieve the purposes for which such sums were appropriated. “(b) (1) (A) The Commissioner shall, from time to time, set dates before, which institutions in any State must file applications for allocation. to such institutions, of supplemental grant funds from the apportionment to that State (including any reapportionment thereto) for any fiscal year pursuant to subsection (a)(1). “(B) (i) From the sums apportioned (or reapportioned) to any State, the Commissioner shall allocate amounts to institutions which have submitted applications pursuant to subparagraph (A). “(ii) Allocations under division (i) by the Commissioner to such institutions shall be made in accordance with equitable criteria established by the Commissioner by regulation. Such criteria shall be designed to achieve such distribution of supplemental grant funds among such institutions within a State as will most effectively carry out the purposes of this subpart. “(2) The Commissioner shall, in accordance with regulations, allocate to such institutions in any State, from funds apportioned or reapportioned pursuant to subsection (a)(2), funds to be used as the supplemental grants specified in section 413A (b)(2). “(3) Payments shall be made from allocations under this subsection as needed. “Subpart 3— Grants to States for State Student Incentives “purpose; appropriations authorized “Sec. 415A. (a) It is the purpose of this subpart to make incentive grants available to the States to assist them in providing grants to eligible students in attendance at institutions of higher education. “(b) (1) There are hereby authorized to be appropriated $50,000,000 for the fiscal year ending June 30, 1973, and for each of the succeeding fiscal years ending prior to July 1, 1975, for payments to the States for grants to students who have not previously been awarded such grants. 86 Stat. 256 “(2) In addition to the sums authorized to lie appropriated pursuant to paragraph (1), there is authorized to be appropriated such sums as may be necessary for malting payments to States to continue their grants to students made with incentive grants received by such States for previous years pursuant to paragraph (1). “(3) Sums appropriated pursuant to paragraph (1) for any fiscal year shall remain available for payments to States for the award of student grants under this subpart until the end of the fiscal year succeeding the fiscal year for which such sums were appropriated. “(4) For the purposes of this subsection, a payment on the first year of a student grant with respect to any student who has not been awarded a grant from appropriations pursuant to paragraph (1) during any previous year shall be considered, subject to regulations of the Commissioner, an initial award to be paid from appropriations pursuant to paragraph (1). “allotment among states “Sec. 415B. (a) (1) (A) From the sums appropriated pursuant to section 415A (b)(1) for any fiscal year, the Commissioner shall allot to each State an amount which bears the same ratio to such sums as the number of students in attendance at institutions of higher education in such State bears to the total number of such students in such attendance in all the States. “(B) For the purposes of this paragraph, the number of students in attendance at institutions of higher education in a State and in all the States shall be determined by the Commissioner for the most recent year for which satisfactory data are available to him. “(2) The amount of any State’s allotment under paragraph (1) for any fiscal year which the Commissioner determines will not be required for such fiscal year for the State student grant incentive program of that State shall be available for reallotment from time to time, on such dates during such year as the Commissioner may fix, to other States in proportion to the original allotments to such States under such part, for such year, but with such proportionate amount for any of such States being reduced to the extent it exceeds the sum the Commissioner estimates such State, needs and will be able to use for such year for carrying out the State plan; and the total of such reductions shall be similarly re allotted among the States whose proportionate amounts were not so reduced. Any amount reallotted to a State under this part during a year from funds appropriated pursuant to section 415 A (b)(1) shall be deemed part of its allotment under paragraph (1) for such year. “(b) Sums appropriated pursuant to section 415A (b)(2) for any fiscal year shall be allotted among the States in such manner as the Commissioner determines will best achieve the purposes for which such sums were appropriated. “(c) The Commissioner shall make payments for continuing incentive grants only to those States which continue to meet the requirements of section 415C(b)(1), (2), (3), and (5). “applications for state student incentive grant programs “Sec. 415C. (a) A State which desires to obtain a payment under this subpart for any fiscal year shall submit an application therefor through the State agency administering its program of student grants, at such time or times, and containing such information as may be required by, or pursuant to, regulation for the purpose of enabling the Commissioner to make the determinations required under this subpart. 86 Stat. 257 “(b) From a State’s allotment under this subpart for any fiscal year the Commissioner is authorized to make payments to such State for paying 50 per centum of the amount of student grants pursuant to a State program which— “(1) is administered by a single State agency; “(2) provides that such grants will be in amounts not in excess of $1,500 per academic year for attendance on a full-time basis as an undergraduate at an institution of higher education; “(3) provides for the selection of recipients of such grants on the basis of substantial financial need determined annually on the basis of criteria established by the State and approved by the Commissioner; “(4) provides for the payment of the non-Federal portion of such grants from funds supplied by such State which represent, an additional expenditure for such year by such State for grants for students attending institutions of higher education over the amount expended by such State for such grants, if any, during the second fiscal year preceding the fiscal year in which such State initially received funds under this sub part; and “(5) provides (A) for such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of and accounting for Federal funds paid to the State agency under this subpart, and (B) for the making of such reports, in such form and containing such information, as may be reasonably necessary to enable the Commissioner to perform his functions under this subpart. “(c) Upon his approval of any application for a payment under this sub part, the Commissioner shall reserve from the applicable allotment (including any applicable reallotment) available therefor, the amount of such payment, which (subject to the limits of such allotment or reallotment) shall be equal to the Federal share of the cost of the student incentive grants covered by such application. The Commissioner shall pay such reserved amount, in advance or by way of reimbursement, and in such installments as he may determine. The Commissioner’s reservation of any amount under this section may be amended by him, either upon approval of an amendment of the application or upon revision of the estimated cost of the student grants with respect to which such reservation was made, and in the event of an upward revision of such estimated cost approved by him he may reserve the Federal share of the added cost only from the applicable allotment (or reallotment) available at the time of such approval. “administration of state programs; judicial review “Sec. 415D. (a) (1) The Commissioner shall not finally disapprove any application for a State program submitted under section 415C, or any modification thereof, without first affording the State agency submitting the program reasonable notice and opportunity for a hearing. “(2) Whenever the Commissioner, after reasonable notice and opportunity for hearing to the State agency administering a State program approved under this subpart, finds— “(A) that the State program has been so changed that it no longer complies with the provisions of this subpart, or “(B) that in the administration of the program there is a failure to comply substantially with any such provisions, the Commissioner shall notify such State agency that the State will not be regarded as eligible to participate in the program under this subpart until he is satisfied that there is no longer any such failure to comply. 86 Stat. 258 “(b) (1) If any State is dissatisfied with the Commissioner’s final action with respect to the approval of its State program submitted under this subpart, or with his final action under subsection (a), such State may appeal to the United. States court of appeals for the circuit in which such State is located. The summons and notice of appeal may be served at any place in the United States. The Commissioner shall forthwith certify and file in the court the transcript of the proceedings and the record on which he based his action. “(2) The findings of fact by the Commissioner, if supported by substantial evidence, shall be conclusive; but the court., for good cause shown, may remand the case to the Commissioner to take further evidence, and the Commissioner may thereupon make new or modified findings of fact and may modify his previous action, and shall certify to the court the transcript and record of the further proceedings. Such new or modified findings of fact shall likewise, be conclusive if supported by substantial evidence. “(3) The court shall have jurisdiction to affirm the action of the Commissioner or to set it aside, in whole or in part. The judgment of the court, shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in title 28, United States Code, section 1254. “Subpart 4— Special Programs for Students From Disadvantaged Backgrounds “program authorization “Sec. 417A. (a) The Commissioner shall, in accordance with the provisions of this subpart, carry out a program designed to identify qualified students from low-income families, to prepare them for a program of postsecondary education, and to provide special services for such students who are pursuing programs of postsecondary education. “(b) For the purpose of enabling the Commissioner to carry out this subpart, there are authorized to be appropriated $100,000,000 for the fiscal year ending June 30, 1973, and for each of the succeeding fiscal years ending prior to July 1, 1975. “authorized activities “Sec. 417B. (a) The Commissioner is authorized (without regard to section 3709 of the Revised Statutes (41 U.S.C. 5)) to make grants to, and contracts with, institutions of higher education, including institutions with vocational and career education programs, combinations of such institutions, public and private agencies and organizations (including professional and scholarly associations), and, in exceptional cases, secondary schools and secondary vocational schools, for planning, developing, or carrying out within the States one or more of the services described in section 417A(a). “(b) Services provided through grants and contracts under this subpart shall be specifically designed to assist in enabling youths from low-income families who have academic potential, but who may lack adequate secondary school preparation or who may be physically handicapped, to enter, continue, or resume a program of postsecondary education, including— “(1) programs, to lie known as ‘Talent Search’, designed to— “(A) identify qualified youths of financial or cultural need with an exceptional potential for postsecondary educational training and encourage them to complete secondary school and undertake postsecondary educational training, 86 Stat. 259 “(B) publicize existing forms of student financial aid, including aid furnished under this title, and “(C) encourage secondary-school or college dropouts of demonstrated aptitude to reenter educational programs, including postsecondary-school programs; “(2) programs, to be known as ‘Upward Bound’, (A) which are designed to generate skills and motivation necessary for success in education beyond high school and (B) in which enrollees from low-income backgrounds and with inadequate secondary-school preparation participate on a substantially full-time basis during all or part of the program; “(3) programs, to be known as ‘Special Services for Disadvantaged Students’, of remedial and other special services for students with academic potential (A) who are enrolled or accepted for enrollment at the institution which is the beneficiary of the grant or contract, and (B) who, by reason of deprived educational, cultural, or economic background, or physical handicap, are in need of such services to assist them to initiate, continue, or resume their postsecondary education; and “(4) a program of paying up to 75 per centum of the cost of establishing and operating Educational Opportunity Centers which— “(A) serve areas with major concentrations of low-income populations by providing, in coordination with other applicable programs and services— “(i) information with respect to financial and academic assistance available for persons in such areas desiring to pursue a program of postsecondary education; “(ii) assistance to such persons in applying for admission to institutions, at which a program of postsecondary education is offered, including preparing necessary applications for use by admission and financial aid officers; and “(iii) counseling services and tutorial and other necessary assistance to such persons while attending such institutions; and “(B) serve as recruiting and counseling pools to coordinate resources and staff efforts of institutions of higher education and of other institutions offering programs of post secondary education, in admitting educationally disadvantaged persons. The portion of the cost of any project assisted under clause (4) in the preceding sentence which is borne by the applicant shall represent an increase in expenditure by such applicant for the purposes of such project. “(c) Enrollees who are participating on an essentially full-time basis in one or more services being provided under this section may be paid stipends, but not in excess of $30 per month except in exceptional cases as determined by the Commissioner.”. (2) The amendment made by paragraph (1) shall be effective after June 30, 1972. (c) Section 461 of the Higher Education Act of 1965 is amended by striking out subsection (b) thereof and inserting in lieu thereof the following: “(b) (1) For the purposes of this title, except part B, the term ‘institution of higher education’ includes any school of nursing; and any proprietary institution of higher education which has an agreement with the Commissioner containing such terms and conditions86 Stat. 260 as the Commissioner determines to he necessary to insure that the availability of assistance to students at the school under this title has not resulted, and will not result, in an increase in the tuition, fees, or other charges to such students. “(2) For the purposes of this subsection: “(A) The term ‘school of nursing’ means a public or other nonprofit collegiate or associate degree school of nursing. “(B) The term ‘collegiate school of nursing’ means a department, division, or other administrative unit in a college or university which provides primarily or exclusively an accredited program of education in professional nursing and allied subjects ending to the degree of bachelor of arts, bachelor of science, bachelor of nursing, or to an equivalent degree, or to a graduate degree in nursing. “(C) The term ‘associate degree school of nursing’ means a department, division, or other administrative unit in a junior college, community college, college, or university which provides primarily or exclusively an accredited two-year program of education in professional nursing and allied subjects leading to an associate degree in nursing or to an equivalent degree. “(D) The term ‘accredited’ when applied to any program of nurse education means a program accredited by a recognized body or bodies approved for such purpose by the Commissioner. “(3) For the purposes of this subsection, the term ‘proprietary institution of higher education’ means a school (A) which provides not less than a six-month program of training to prepare students for gainful employment in a recognized occupation, (B) which meets the requirements of clauses (1) and (2) of section 1201(a), (C) which does not meet the requirement of section clause (4) of section 1201(a), (D) which is accredited by a nationally recognized accrediting agency or association approved by the Commissioner for this purpose., and (E) which has been in existence for at least two years. For purposes of this paragraph, the Commissioner shall publish a list of nationally recognized accrediting agencies or associations which he determines to be reliable authority as to the quality of training offered. “(c) For the purposes of this title— “(1) the term ‘academic year’ shall be defined by the Commissioner by regulations; and “(2) the term ‘in attendance’, when applied to a student, means a student who attends an institution of higher education at least on a half-time basis, as defined by the Commissioner by regulation.”. (d) (1) Sect ion 1201 of the Higher Education Act of 1905 is amended by adding at the end thereof the following new paragraph: “(1) The term ‘school or department of divinity’ means an institution or a department or a branch of an institution the program of instruction of which is designed for the education of students (A) to prepare them to become ministers of religion or to enter upon some other religious vocation (or to provide continuing training for any such vocation), or (B) to prepare them to teach theological subjects.”. (2) The Higher Education Act of 1965 is amended by striking out the following provisions: (A) The second sentence of section 113; (B) The second sentence of section 207; (C) The second sentence of section 526; (D) The second sentence of section 609; and (E) The second sentence of section 923.