GRANTS FOR WORK-STUDY PROGRAMS.

SEC. 443. GRANTS FOR WORK-STUDY PROGRAMS. (a) Contents of Agreements.— Section 443(b)(1) of the Act (42 U.S.C. 2753) is amended, in the matter preceding subparagraph (A), by inserting “, work in community service” after “itself”. (b) Use for Community Service.— Section 443(b)(2)(A) of the Act is amended to read as follows: “(A) in fiscal year 1994 and succeeding fiscal years, an institution shall use at least 5 percent of the total amount of funds granted to such institution under this section in any fiscal year to compensate students employed in community service, except that the Secretary may waive 106 STAT. 565this subparagraph if the Secretary determines that enforcing it would cause hardship for students at an institution;”. (c) Allocation.— Section 443(b)(3) of the Act is amended to read as follows: “(3) provide that in the selection of students for employment under such work-study program, only students, who demonstrate financial need in accordance with part F of this title, and who meet the requirements of section 484 will be assisted, except that— “(A) if the institution’s grant under this part is directly or indirectly based in part on the financial need demonstrated by students who are (i) attending the institution less than full time, or (ii) independent students; and “(B) if the total financial need of all such less than full-time and independent students at the institution exceeds 5 percent of the total financial need of all students at such institution, then at least 5 percent of the grant shall be made available to such less than full-time and independent students;”. (d) Overaward Income Limit.— Section 443(b)(4) of the Act is amended to read as follows: “(4) provide that for a student employed in a work-study program under this part, at the time income derived from any need-based employment is in excess of the determination of the amount of such student’s need by more than $300, continued employment shall not be subsidized with funds appropriated under this part;”. (e) Federal Share.— Section 443(b)(5) of the Act is amended to read as follows: “(5) provide that the Federal share of the compensation of students employed in the work-study program in accordance with the agreement shall not exceed 75 percent for academic year 1993–1994 and succeeding academic years, except that— “(A) the Federal share may exceed such amounts of such compensation if the Secretary determines, pursuant to regulations promulgated by the Secretary establishing objective criteria for such determinations, that a Federal share in excess of such amounts is required in furtherance of the purpose of this part; and “(B) when a student engaged in work in community service performs such work for a private nonprofit organization other than the eligible institution, the contribution of such agency or organization shall not exceed 40 percent of the institution’s share of the compensation of the student, and the eligible institution in its discretion may count such contribution toward satisfaction of the non-Federal share of the compensation of the student;”. (f) Proprietary Schools.— Section 443(b)(8) of the Act is amended— (1) in subparagraph (A), by inserting “, except as required in subparagraph (A) of paragraph (2)” before the semicolon at the end thereof; and (2) in subparagraph (C), by inserting “that are directly related to the student’s education” after “student services”. (g) Individuals With Disabilities.— Section 443(b) of the Act is amended— (1) by redesignating paragraph (9) as paragraph (11); 106 STAT. 566 (2) by striking “and” at the end of paragraph (8); and (3) by inserting after paragraph (8) the following new paragraphs: “(9) provide assurances that employment made available from funds under this part may be used to support programs for supportive services to students with disabilities; “(10) provide assurances that the institution will inform all eligible students of the opportunity to perform community service, and will consult with local nonprofit, governmental, and community-based organizations to identify such opportunities; and”.