Sec. 302. Use of funds from the repayment of Federal student loans
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Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq. ) is amended by adding at the end the following: The Secretary of Education shall, without further appropriation, deposit all amounts repaid on loans made, insured, or guaranteed under this title into the Education Affordability Trust Fund established under section 494B (referred to in this section as the Trust Fund ). The Trust Fund Board shall transfer the profits from the investments of the Trust Fund to the Secretary of Education, to pay for the administrative costs of the Department of Education in making loans under part D, including loans under section 460A(b), to all eligible students (and the eligible parents of such students) in attendance at participating institutions of higher education selected by the Secretary, to enable such students to pursue their courses of study at such institutions, in the following amounts:
During any period of time when the Trust Fund has assets under management of $500,000,000 or more over a 180 day period, 100 percent of such profits. During any period of time when the Trust Fund has profits of less than $500,000,000, but more than or equal to $400,000,000 over a 180 day period, 40 percent of such profits. During any period of time when the Trust Fund has profits of less than $400,000,000 but more than or equal to $300,000,000 over a 180 day period, 10 percent of such profits.
During any period of time when the Trust Fund has profits of less than $300,000,000 over a 180 day period, 0 percent of such profits. In this subsection, the term profits means the amount that the return on investment from bond investments made by the Trust Fund exceeds the amount repaid on loans and deposited into the Trust Fund under subsection (a). If the amounts required to be transferred under subsection
(b)are in excess of the amounts needed to pay for the costs of the Department of Education described under subsection (b), the Secretary of Education may elect to use such excess amounts (or a portion of such excess amounts)— to carry out the Supplemental Federal Pell Grant Program under section 401(b)(10); and for the Postsecondary Student Success Program authorized under part B of title VII and for which the Department issued a notice inviting applications in the Federal Register on August 12, 2022 (87 Fed. Reg. 49811 et. seq.), except that, notwithstanding the terms and condition of such program described in the notice— any institution of higher education defined in section 101 or 102(a)(1)(B) is eligible to receive a grant under the program if— the average cost of tuition to attend such institution for the 3 most recent academic years has not increased by more than 3 percent; the institution provides an assurance that the average cost of tuition to attend such institution for the succeeding 3 academic years will not increase by more than 3 percent; or the size of the endowment fund (as defined in section 312(c)) of the institution on the first day of the previous calendar year was not greater than $100,000,000; and grants under the program will be awarded on a competitive basis, and the amount of any such grant will be not less than $600,000, and not more than $1,000,000. If the Secretary of Education elects to use excess amounts described under subsection
(c)the Secretary shall provide to Congress a report on the use of such amounts (and provide testimony on such use) not later than 180 days after making use of such funds. .
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- 87 FR 49811
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