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Code · BILL · 116th Congress · H.R. 4674 (Introduced in House) — To amend and strengthen the Higher Education Act of 1965 to lower the cost of college for students and families, to h... · Sec. 4202

Sec. 4202. Allocation formula

1,842 words·~8 min read·/bill/116/hr/4674/ih/section-4202·

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Section 442 of the Higher Education Act of 1965 ( 20 U.S.C. 1087–52 ) is amended to read as follows: Beginning with the first fiscal year that is 2 years after the date of the enactment of the College Affordability Act , for a fiscal year in which the amount appropriated under section 441(b) exceeds $700,000,000, the Secretary shall— reserve the lesser of— an amount equal to 20 percent of the amount by which the amount appropriated under section 441(b) exceeds $700,000,000; or $150,000,000; and allocate the amount reserved under clause
(i)to each improved institution in an amount equal to the greater of the following: The amount that bears the same proportion to the amount reserved under clause
(i)as the total amount of all Federal Pell Grant funds awarded at the improved institution for the second preceding fiscal year bears to the total amount of Federal Pell Grant funds awarded at improved institutions participating under this part for the second preceding fiscal year. $5,000. For purposes of this paragraph, an improved institution is an institution that, on the date the Secretary makes an allocation under subparagraph (A)(ii)— is an institution of higher education (as defined under section 101) participating under this part; is with respect to— the completion rate or graduation rate of Federal Pell Grant recipients at the institution, in the top 75 percent of all institutions participating under this part for the preceding fiscal year; the percentage of Federal Pell Grant recipients at the institution, in the top 50 percent of the institutions described in subclause (I); and the annual increase in the completion rate or graduation rate of Federal Pell Grant recipients at the institution, in the top 50 percent of the institutions described in subclauses
(I)and (II). For purposes of determining the completion rate or graduation rate under this section, a Federal Pell Grant recipient who is either a full-time student or a part-time student shall be counted as a completer or graduate if, within 150 percent of the normal time for completion of or graduation from the program, the student has completed or graduated from the program, or enrolled in any program of an institution participating in any program under this title for which the prior program provides substantial preparation. From the amount appropriated under section 441(b) for a fiscal year and remaining after the Secretary reserves funds under subparagraph (A), the Secretary shall reserve $30,000,000 to carry out grants under section 449. If an institution returns to the Secretary any portion of the sums allocated to such institution under this subsection for any fiscal year, the Secretary shall reallot such excess to improved institutions on the same basis as under paragraph (1)(A). Beginning 1 year after the first allocations are made to improved institutions under paragraph (1)(A) and annually thereafter, the Secretary shall make publicly available— a list of the improved institutions that received funding under such paragraph in the prior fiscal year; the percentage of students at each such improved institution that are Federal Pell Grant recipients; the completion rate or graduation rate for the students described in subparagraph
(B)with respect to each such improved institution; and a comparison between the information described in subparagraphs (A), (B), and
(C)for the prior fiscal year for such improved institution, and such information for the year prior to such year. From the amount appropriated under section 441(b) for a fiscal year and remaining after the Secretary reserves funds under subsection (a), the Secretary shall allocate to each institution— for fiscal year 2021, an amount equal to the greater of— 90 percent of the amount the institution received under this subsection and subsection
(a)for fiscal year 2020, as such subsections were in effect with respect to such fiscal year (in this subparagraph referred to as the 2020 amount for the institution ); or the fair share amount for the institution determined under subsection (d); for fiscal year 2022, an amount equal to the greater of— 80 percent of the 2020 amount for the institution; or the fair share amount for the institution determined under subsection (d); for fiscal year 2023, an amount equal to the greater of— 60 percent of the 2020 amount for the institution; or the fair share amount for the institution determined under subsection (d); for fiscal year 2024, an amount equal to the greater of— 40 percent of the 2020 amount for the institution; or the fair share amount for the institution determined under subsection (d); and for fiscal year 2025, an amount equal to the greater of— 20 percent of the 2020 amount for the institution; or the fair share amount for the institution determined under subsection (d). If the amount appropriated under section 441(b) for a fiscal year and remaining after the Secretary reserves funds under subsection
(a)is less than the amount required to be allocated to the institutions under this subsection, then the amount of the allocation to each institution shall be ratably reduced. If the amounts allocated to each institution are ratably reduced under subparagraph
(A)for a fiscal year and additional amounts are appropriated for such fiscal year, the amount allocated to each institution from the additional amounts shall be increased on the same basis as the amounts under subparagraph
(A)were reduced (until each institution receives the amount required to be allocated under this subsection). Except as provided in subsection (d)(5), from the amount appropriated under section 441(b) for fiscal year 2026 and each succeeding fiscal year and remaining after the Secretary reserves funds under subsection (a), the Secretary shall allocate to each institution the fair share amount for the institution determined under subsection (d). Subject to paragraph (2), the fair share amount for an institution for a fiscal year shall be equal to the sum of— 100 percent of the institution’s undergraduate student need described in paragraph
(2)for the preceding fiscal year; and 25 percent of the institution’s graduate student need described in paragraph
(3)for the preceding fiscal year. The undergraduate student need for an institution for a fiscal year shall be equal to the sum of the following: An amount equal to 50 percent of the amount that bears the same proportion to the available appropriated amount for such fiscal year as the total amount of Federal Pell Grant funds awarded at the institution for the preceding fiscal year bears to the total amount of Federal Pell Grant funds awarded at all institutions participating under this part for the preceding fiscal year. An amount equal to 50 percent of the amount that bears the same proportion to the available appropriated amount for such fiscal year as the total amount of the undergraduate student need at the institution for the preceding fiscal year bears to the total amount of undergraduate student need at all institutions participating under this part for the preceding fiscal year. The graduate student need for an institution for a fiscal year shall be equal to the amount that bears the same proportion to the available appropriated amount for such fiscal year as the total amount of the graduate student need at the institution for the preceding fiscal year bears to the total amount of graduate student need at all institutions participating under this part for the preceding fiscal year. The Secretary may not allocate funds under this part to any institution that, for two or more fiscal years during any three fiscal year period beginning not earlier than the first day of the first fiscal year that is 2 years after the date of the enactment of this paragraph, has— a student population with less than 7 percent of undergraduate students who are recipients of Federal Pell Grants; or if the institution only enrolls graduate students, a student population with less than 5 percent of students that have an expected family contribution of zero. In this subsection: In this section, the term available appropriated amount means— the amount appropriated under section 441(b) for a fiscal year, minus the amounts reserved under subsection
(a)for such fiscal year. The term average cost of attendance means, with respect to an institution, the average of the attendance costs for a fiscal year for students which shall include— tuition and fees, computed on the basis of information reported by the institution to the Secretary, which shall include— total revenue received by the institution from undergraduate and graduate tuition and fees for the second year preceding the year for which it is applying for an allocation; and the institution’s enrollment for such second preceding year; standard living expenses equal to 150 percent of the difference between the income protection allowance for a family of five with one in college and the income protection allowance for a family of six with one in college for a single independent student; and books and supplies, in an amount not exceeding $1,000. The term graduate student need means, with respect to a graduate student for a fiscal year, the lesser of the following: The amount equal to (except the amount computed by this clause shall not be less than zero)— the average cost of attendance for the preceding fiscal year, minus such graduate student’s expected family contribution (computed in accordance with part F of this title) for the preceding fiscal year. The total annual loan limit for a Federal Direct Unsubsidized Stafford Loan. The term undergraduate student need means, with respect to an undergraduate student for a fiscal year, the lesser of the following: The total of the amount equal to (except the amount computed by this clause shall not be less than zero)— the average cost of attendance for the fiscal year, minus such undergraduate student’s expected family contribution (computed in accordance with part F of this title) for the preceding fiscal year. The total annual loan limit for a Federal Direct Unsubsidized Stafford Loan and a Federal Direct Loan. Except with respect to funds returned under subsection (a)(3), if an institution returns to the Secretary any portion of the sums allocated to such institution under this section for any fiscal year, the Secretary shall reallot such excess to institutions that used at least 10 percent of the total amount of funds granted to such institution under this section to compensate students employed during a qualified period of nonenrollment (as such term is defined in section 443(f)) on the same basis as excess eligible amounts are allocated under subsection (d). Funds received by institutions pursuant to this subsection shall, to maximum extent practicable, be used to compensate students employed in work-based learning positions. If an institution returns more than 10 percent of its allocation under paragraph (1), 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. The Secretary may require applications under this section, at such time, in such manner, and containing such information as the Secretary may require. .
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  • 20 USC 1087–52
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Sec. 4202
Allocation formula
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