FEDERAL PELL GRANT PROGRAM.

SEC. 401. FEDERAL PELL GRANT PROGRAM. (a) Authorization.— Section 411(a)(l) of the Act (20 U.S.C. 1070a(a)(l)) is amended— 106 STAT. 480 (1) by striking “September 30, 1992,” and inserting “September 30, 1998,”; and (2) by striking “paragraph (2)” and inserting “subsection (b)”. (b) Name of Program.— Section 411(a)(3) of the Act is amended by striking “as Tell Grants’” and inserting “as ‘Federal Pell Grants’”. (c) Proportion of Cost.— Section 411(b)(1) of the Act is amended— (1) by striking “(A) as determined” and all that follows through “and (B)”; (2) by striking “parental or independent student” and inserting “family and student”; (3) by striking “subparts 2 and 3” and inserting “subparts 3 and 4”; and (4) by striking “will meet 75 percent” and inserting “will meet at least 75 percent”. (d) Grant Amounts.— (1) Maximum grant amounts.— Section 4U(b)(2)(A) of the Act is amended by striking clauses (i) through (v) and inserting the following: “(i) $3,700 for academic year 1993–1994, “(ii) $3,900 for academic year 1994–1995, “(iii) $4,100 for academic year 1995–1996, “(iv) $4,300 for academic year 1996–1997, and “(v) $4,500 for academic year 1997–1998,”. (2) Grant amounts for less-than-half-time students.— Section 411(b)(2)(B) of the Act is amended in the first sentence therein— (A) by inserting immediately after “full-time basis” the following: “(including a student who attends an institution of higher education on less than a half-time basis)”; and (B) by inserting before the period at the end thereof the following: “, computed in accordance with this subpart”. (3) Determination of grant amounts based on need.— Section 411(b)(3) of the Act is amended to read as follows: “(3) (A) For any academic year for which an appropriation Act provides a maximum basic grant in an amount in excess of $2,400, the amount of a student’s basic grant shall equal $2,400 plus— “(i) one-half of the amount by which such maximum basic grant exceeds $2,400; plus “(ii) the lesser of— “(I) the remaining one-half of such excess; or “(II) the sum of the student’s tuition and the student’s allowance determined under subparagraph (B), if applicable. “(B) For purposes of subparagraph (A)(ii)(II), a student’s allowance is $750 if the student has dependent care expenses (as defined in section 472(8)) or disability related expenses (as defined in section 472(9)).”. (4) Conforming amendment.— Section 411(b)(4) of the Act is amended by striking “411F” and inserting “472”. (5) Minimum grant amounts.— Section 411(b)(5) of the Act is amended by striking “$200” and inserting “$400, except that a student who is eligible for a basic grant that is equal to or greater than $200 but less than $400 shall be awarded a basic grant of $400”. 106 STAT. 481 (6) Exception to maximum pell grant award; study abroad; incarcerated students.— Section 411(b) of the Act is further amended by striking paragraphs (6) and (7) and inserting the following: “(6) The Secretary may allow, on a case-by-case basis, a student to receive 2 Pell grants during a single 12-month period, if— “(A) the student is enrolled full-time in a baccalaureate degree program of study that is 2 years or longer at an eligible institution that is computed in credit hours; and “(B) the student completes course work toward completion of a bachelor’s degree that exceeds the requirements for a full academic year as defined by the institution. “(7) Notwithstanding any other provision of this subpart, the Secretary shall allow the amount of the basic grant to be exceeded for students participating in a program of study abroad approved for credit by the institution at which the student is enrolled when the reasonable costs of such program are greater than the cost of attendance at the student’s home institution, except that the amount of such basic grant in any fiscal year shall not exceed the grant level specified in the appropriate Appropriation Act for this subpart for such year. If the preceding sentence applies, the financial aid administrator at the home institution may use the cost of the study abroad program, rather than the home institution’s cost, to determine the cost of attendance of the student. “(8) (A) No basic grant shall be awarded to an incarcerated student under this subpart that exceeds the sum of the amount of tuition and fees normally assessed by the institution of higher education for the course of study such student is pursuing plus an allowance (determined in accordance with regulations issued by the Secretary) for books and supplies associated with such course of study, except that no basic grant shall be awarded to any incarcerated student serving under sentence of death or any life sentence without eligibility for parole or release. “(B) Basic grants under this subpart shall only be awarded to incarcerated individuals in a State if such grants are used to supplement and not supplant the level of postsecondary education assistance provided by such State to incarcerated individuals in fiscal year 1988.”. (e) Period of Eligibility.— (1) Removal of academic year limitations.— Section 411(c)(1) is amended by striking everything following “except that” and inserting “any period during which the student is enrolled in a noncredit or remedial course of study as defined in paragraph (2) shall not be counted for the purpose of this paragraph.”. (2) Clarification of eligibility for study abroad.— Section 411(c)(2) of the Act is amended by adding at the end thereof the following new sentence: “Nothing in this section shall exclude from eligibility programs of study abroad that are approved for credit by the home institution at which the student is enrolled.”. (f) Calculation of Eligibility.— Section 411(f) of the Act is amended— (1) in paragraph (1)— (A) in the matter preceding subparagraph (A), by striking “an estimate of the eligibility index” and inserting “, as 106 STAT. 482a part of its regular output document, the expected family contribution”; (B) in subparagraph (A) by striking “eligibility index” and inserting “expected family contribution”; (C) in subparagraph (B), by striking “eligibility index” and inserting “expected family contribution”; and (D) in subparagraph (D), by striking “eligibility index” and inserting “expected family contribution”; and (2) in paragraph (3), by striking “eligibility index” and inserting “expected family contribution”; (g) Insufficient Appropriations.— Section 411(g) of the Act is amended to read as follows: “(g) Insufficient Appropriations.— If, for any fiscal year, the funds appropriated for payments under this subpart are insufficient to satisfy fully all entitlements, as calculated under subsection (b) (but at the maximum grant level specified in such appropriation), the Secretary shall promptly transmit a notice of such insufficiency to each House of the Congress, and identify in such notice the additional amount that would be required to be appropriated to satisfy fully all entitlements (as so calculated at such maximum grant level).”. (h) Treatment of Recipients.— Section 411(i) of the Act is amended— (1) by striking “Noncontractor Status of Institutions” and inserting “Treatment of Institutions and Students Under Other Laws”; and (2) by adding at the end the following new sentence: “Recipients of Pell Grants shall not be considered to be individual grantees for purposes of part D of title V of Public Law 100–690.”. (i) Unification of Needs Analysis Systems.— Subpart 1 of part A of title IV of the Act is amended by striking sections 411A through 411F (20 U.S.C. 1070a–l through 1070a–6).