§1070a–25 Scholarship component

Summary

Grantees must run a scholarship program for students to get grants under this program. The Department encourages making each scholarship usable at any college. Some other eligible groups may also give scholarships under the same rules. Each grantee must spend at least 25% and no more than 50% of its grant on other required program activities, unless the Secretary allows more than 50% because the grantee shows it has other ways to help students and explains those in its application. Grantees must tell students the scholarship rules when the students enter the program. Each grantee decides the maximum scholarship amount. The minimum amount each year cannot be less than the Federal Pell Grant minimum for that award year. Grantees must set aside at least the minimum scholarship amount for each student they expect will qualify; those reserved funds are paid when a student finishes high school (or an equivalent) and enrolls in college. Scholarships can pay tuition, fees, books, supplies, required equipment, and, for students with special needs, related services. Reserved money not used within six years can be re‑used for other students. If funds still remain after reusing them, or if a grantee gets no program help for six fiscal years, the grantee must return the leftover reserved money to the Department for reallocation. Scholarships don’t count toward other federal grant awards, and total federal aid to a student can’t exceed the student’s cost of attendance. An eligible student is under 22 at first award, earned a high school diploma or equivalent on or after January 1, 1993, is enrolled or accepted in an undergraduate program at a college in the State (the State may allow out‑of‑state attendance), and took the required program activities.