GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER EDUCATION.

SEC. 401. GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER EDUCATION.(a) Amendments.—Part A of title IV (20 U.S.C. 1070 et seq.) is amended—(1) in section 400(b) (20 U.S.C. 1070(b)), by striking “1 through 8” and inserting “1 through 9”;(2) in section 401 (20 U.S.C. 1070a)—(A) in the second sentence of subsection (a)(1), by striking “manner,,” and inserting “manner,”;(B) in subsection (b)(1), by striking “section 401” and inserting “this section”; and(C) in subsection (b)(9)(A)—(i) in clause (vi), by striking “$105,000,000” and inserting “$258,000,000”; and(ii) in clause (viii), by striking “$4,400,000,000” and inserting “$4,452,000,000”;(3) by striking paragraph (4) of section 401(f) (20 U.S.C. 1070a(f)), as added by section 401(c) of the Higher Education Opportunity Act (Public Law 110–315);(4) in section 402A (20 U.S.C. 1070a–11)—(A) in subsection (b)(1), by striking “organizations including” and inserting “organizations, including”; and(B) in subsection (c)(8)(C)(iv)(I), by inserting “to be” after “determined”;(5) in section 402E(d)(2)(C) (20 U.S.C. 1070a–15(d)(2)(C)), by striking “320.” and inserting “320”;(6) in section 415E(b)(1)(B) (20 U.S.C. 1070c–3a(b)(1)(B))—(A) in clause (i), by striking “If a” and inserting “Except as provided in clause (ii), if a”;(B) by redesignating clause (ii) as clause (iii); and(C) by inserting after clause (i) (as amended by subparagraph (A)) the following:“(ii) Special continuation and transition rule.—If a State that applied for and received an allotment under this section for fiscal year 2010 pursuant to subsection (j) meets the specifications established in the State’s application under subsection (c) for fiscal year 2011, then the Secretary shall make an allotment to such State for fiscal year 2011 that is not less than the allotment made pursuant to subsection (j) to such State for fiscal year 2010 under this section (as this section was in effect on the day 123 STAT. 1939 before the date of enactment of the Higher Education Opportunity Act (Public Law 110–315)).”;(7) in section 419C(b)(1) (20 U.S.C. 1070d–33(b)(1)), by inserting “and” after the semicolon at the end;(8) in section 419D(d) (20 U.S.C. 1070d–34(d)), by striking “1134” and inserting “134”; and(9) by adding at the end the following:“Subpart 10—Scholarships for Veteran’s Dependents“SEC. 420R. SCHOLARSHIPS FOR VETERAN’S DEPENDENTS.“(a) Definition of Eligible Veteran’s Dependent.—The term ‘eligible veteran’s dependent’ means a dependent or an independent student—“(1) whose parent or guardian was a member of the Armed Forces of the United States and died as a result of performing military service in Iraq or Afghanistan after September 11, 2001; and“(2) who, at the time of the parent or guardian’s death, was—“(A) less than 24 years of age; or“(B) enrolled at an institution of higher education on a part-time or full-time basis.“(b) Grants.—“(1) In general.—The Secretary shall award a grant to each eligible veteran’s dependent to assist in paying the eligible veteran’s dependent’s cost of attendance at an institution of higher education.“(2) Designation.—Grants made under this section shall be known as ‘Iraq and Afghanistan Service Grants’.“(c) Prevention of Double Benefits.—No eligible veteran’s dependent may receive a grant under both this section and section 401.“(d) Terms and Conditions.—The Secretary shall award grants under this section in the same manner, and with the same terms and conditions, including the length of the period of eligibility, as the Secretary awards Federal Pell Grants under section 401, except that—“(1) the award rules and determination of need applicable to the calculation of Federal Pell Grants, shall not apply to grants made under this section;“(2) the provisions of subsection (a)(3), subsection (b)(1), the matter following subsection (b)(2)(A)(v), subsection (b)(3), and subsection (f), of section 401 shall not apply; and“(3) a grant made under this section to an eligible veteran’s dependent for any award year shall equal the maximum Federal Pell Grant available for that award year, except that such a grant under this section—“(A) shall not exceed the cost of attendance of the eligible veteran’s dependent for that award year; and“(B) shall be adjusted to reflect the attendance by the eligible veteran’s dependent on a less than full-time basis in the same manner as such adjustments are made under section 401.“(e) Estimated Financial Assistance.—For purposes of determinations of need under part F, a grant awarded under this section 123 STAT. 1940 shall not be treated as estimated financial assistance as described in sections 471(3) and 480(j).“(f) Authorization and Appropriations of Funds.—There are authorized to be appropriated, and there are appropriated, out of any money in the Treasury not otherwise appropriated, for the Secretary to carry out this section, such sums as may be necessary for fiscal year 2010 and each succeeding fiscal year.” .(b) Effective Date.—The amendment made by subsection (a)(9) shall take effect on July 1, 2010.(c) Higher Education Opportunity Act.—Section 404 of the Higher Education Opportunity Act (Public Law 110–315) is amended by adding at the end the following new subsection:“(i) Effective Date; Transition.—“(1) In general.—The amendments made by subsection (e) shall apply to grants made under chapter 2 of subpart 2 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a–21 et seq.) on or after the date of enactment of this Act, except that a recipient of a grant under such chapter that is made prior to such date may elect to apply the requirements contained in the amendments made by subsection (e) to that grant if the grant recipient informs the Secretary of the election.“(2) Special rule.—A grant recipient may make the election described in paragraph (1) only if the election does not decrease the amount of the scholarship promised to an individual student under the grant.”.