Sec. 4015. Federal Pell Grant fraud prevention
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Section 401 of the Higher Education Act of 1965 ( 20 U.S.C. 1070a et seq.), as amended by this subpart, is further amended by inserting after subsection
(l)the following: Not later than December 31 of each year, the Secretary shall prepare and submit a report to the authorizing committees that includes the following information with respect to unusual enrollment history: The number and percentage of total applicants who were flagged for an unusual enrollment history in the preceding award year. The number and percentage of institutions that have had fewer than 2 percent of applicants flagged for an unusual enrollment history in the preceding award year. The name of each institution that has had more than 2 percent of total applicants flagged for an unusual enrollment history in the preceding award year. If the percentage of total applicants in subparagraph
(A)is greater than 2 percent, a detailed plan from the Secretary as to how to reduce that percentage below 2 percent by the following award year. For the purposes of this subsection the term unusual enrollment history means, with respect to the application for Federal student aid— a pattern in which a student attends an institution long enough to receive a disbursement of credit balance funds authorized by this title, does not complete the enrollment period, enrolls at another institution and repeats this pattern to collect an additional credit balance of funds authorized by this title without earning academic credit; or any other enrollment pattern that the Department believes may signal an attempt by a student to receive funds authorized under this title in a fraudulent manner. .
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Sec. 4015
Federal Pell Grant fraud prevention
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