Pub. L. 107-116, tit. III, sec. 306

Sec. 306. (a) Notwithstanding sections 413D, 442, and 488 of the Higher Education Act of 1965, the Secretary of Education may reallocate, from funds made available under the heading “Student Financial Assistance” to carry out part C of title IV of that Act, excess allocations for fiscal year 2002 in an amount not to exceed $1,000,000 in the aggregate to institutions of higher education described in subsection (b) for the purposes described in subsection (c). The reallocation to each such institution shall be made in accordance with subsection (d). Such excess allocations shall remain available for obligation until March 31, 2004.115 STAT. 2209 (b) An institution of higher education may receive a reallocation under subsection (a) if the institution— (1) is, on the date of enactment of this Act, participating in the Federal Supplemental Educational Opportunity Grant and Federal Work Study programs under subpart 3 of part A, and part C of title IV of that Act, respectively; (2) initially began participating in both such programs during or after 1989, but not later than 1999; (3) has a current enrollment of not less than 2,000 students; (4) provides educational programs for which the institution awards baccalaureate and graduate degrees; (5) has experienced an actual enrollment increase of 75 percent or more since the institution began participating in such programs; and (6) charged, for academic year 2000–2001, in-State tuition and fees for a full-time undergraduate student that were less than such tuition and fees charged by the institution for academic year 1998–1999. (c) An institution of higher education that receives a reallocation under subsection (a) may use that reallocation for Federal Supplemental Educational Opportunity Grants or Federal Work Study awards. (d)(1) A reallocation made under subsection (a) to an institution described in subsection (b) shall be determined by calculating the difference between— (A) the amount (commonly referred to as the “base guarantee”) that the institution received under section 413D(a) or 442(a) of that Act, as the case may be; and (B) the amount that the institution would receive pursuant to section 413D(a)(2)(B)(ii) or 442(a)(2)(B)(ii) of that Act, as the case may be, if the institution were beginning its program participation in the 2002–2003 academic year. (2) If the amounts available for reallocation under subsection (a) are insufficient to fully fund the amounts determined under paragraph (1) of this subsection to each institution described in subsection (b), then the amount to be reallocated to each such institution shall be ratably reduced. (e) The Secretary may use such data as he determines appropriate in order to carry out this section.