FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

SEC. 403. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS. (a) Title of Program.— The heading of subpart 3 of part A of title TV of the Act (as redesignated in section 402(a)) is amended to read as follows: “Subpart 3— Federal Supplemental Educational Opportunity Grants”. (b) Authorization of Appropriations.— Section 413A(b) of the Act (20 U.S.C. 1076b(b)) is amended to read as follows: “(b) Authorization of Appropriations.— (1) For the purpose of enabling the Secretary to make payments to institutions of higher education which have made agreements with the Secretary in accordance with section 413C(a), for use by such institutions for payments to undergraduate students of supplemental grants awarded to them under this subpart, there are authorized to be appropriated $675,000,000 for fiscal year 1993 and such sums as may be necessary for the 4 succeeding fiscal years. “(2) Sums appropriated pursuant to this subsection for any fiscal year shall be available for payments to institutions until the end of the second fiscal year succeeding the fiscal year for which such sums were appropriated.”. (c) Eligibility for Study Abroad.— Section 413B(a) of the Act (20 U.S.C. 1070b-l(a)) is amended— (1) in paragraph (1)— (A) by striking “From” and inserting “Except as provided in paragraph (3), from”; and (B) in subparagraph (A), by inserting “or in a program of study abroad that is approved for credit by the institution at which the student is enrolled” after “course of study at the institution”; and (2) by inserting after paragraph (2) the following new paragraph: “(3) For students participating in study abroad programs, the institution shall consider all reasonable costs associated with such 106 STAT. 506study abroad when determining student eligibility. The amount of grant to be awarded in such cases may exceed the maximum amount of $4,000 by as much as $400 if reasonable study abroad costs exceed the cost of attendance at the home institution.”. (d) Federal Share.— Section 413C(a)(2) of the Act is amended to read as follows: “(2) agrees that the Federal share of awards under this subpart will not exceed 75 percent of such awards, except that the Federal share may be exceeded if the Secretary determines, pursuant to regulations establishing objective criteria for such determinations, that a larger Federal share is required to further the purpose of this subpart; and”. (e) Use of Funds to Nontraditional Students.— Section 413C(d) of the Act (20 U.S.C. 1070b–2(d)) is amended— (1) by inserting “who are independent students or” after “demonstrated by students”; and (2) by inserting before the period at the end thereof the following: “, except that if the total financial need of all such students attending the institution exceeds 5 percent of the need of all students attending such institution, then at least 5 percent of such allotment shall be made available to such students”. (f) Transfer of Funds.— Section 413C(e) of the Act is amended by striking “, and may transfer such funds in accordance with the provisions of section 488”. (g) Allocation of Funds.— Section 413D(a) of the Act (20 U.S.C. 1070b-3(a)) is amended by adding at the end the following new paragraph: “(4) (A) Notwithstanding any other provision of this section, the Secretary may allocate an amount equal to not more than 10 percent of the amount by which the amount appropriated in any seal year to carry out this part exceeds $700,000,000 among eligible institutions described in subparagraph (B). “(B) In order to receive an allocation pursuant to subparagraph (A) an institution shall be an eligible institution from which 50 percent or more of the Pell Grant recipients attending such eligible institution graduate from or transfer to a 4-year institution of higher education.”. (h) Consequences of Failure To Award.— Section 413D(e) of the Act (20 U.S.C. 1070b-3(e)) is amended— (1) by inserting “(1)” after the subsection heading; and (2) by adding at the end the following new paragraph: “(2) If under paragraph (1) of this subsection an institution returns more than 10 percent of its allocation, the institution’s allocation for the next fiscal year shall be reduced by the amount returned. The Secretary may waive this paragraph for a specific institution if the Secretary finds that enforcing this paragraph would be contrary to the interest of the program.”.