Title 20 — EducationRelease 119-73
§1070b–2 Agreements with institutions; selection of recipients
Title 20 › Chapter CHAPTER 28— - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE › Subchapter SUBCHAPTER IV— - STUDENT ASSISTANCE › Part Part A— - Grants to Students in Attendance at Institutions of Higher Education › Subpart subpart 3— - federal supplemental educational opportunity grants › § 1070b–2
Summary
Only schools that have an approved agreement with the Secretary can get money under this program. The federal government will normally pay no more than 75 percent of each award, unless the Secretary, using fair written rules, decides more federal help is needed to meet the program’s goals. The school must pay the rest from its own funds, such as campus grants and scholarships, tuition or fee waivers, state scholarships, or money from foundations or charities. Awards go only to students who meet the eligibility rules in section 1091 and who apply when and how the Secretary and the school require. Each year the school must pick which eligible students get supplemental grants from the amount it was given and decide how much each student gets. The school’s agreement must say the school will give grants first to students with the greatest need (those with the lowest student aid indexes) and will give priority to Pell Grant recipients who meet section 1091. If the school’s money is based partly on need shown by independent or less-than-full-time students, a fair share must go to those students. The funds can only be used to pay students in the grant program, except that some may be used for administrative costs under section 1096.
Full Legal Text
Title 20, §1070b–2
Education — Source: USLM XML via OLRC
(a)Assistance may be made available under this subpart only to an institution which—
(1)has, in accordance with section 1094 of this title, an agreement with the Secretary applicable to this subpart;
(2)agrees that the Federal share of awards under this subpart will not exceed 75 percent of such awards, except that the Federal share may be exceeded if the Secretary determines, pursuant to regulations establishing objective criteria for such determinations, that a larger Federal share is required to further the purpose of this subpart; and
(3)agrees that the non-Federal share of awards made under this subpart shall be made from the institution’s own resources, including—
(A)institutional grants and scholarships;
(B)tuition or fee waivers;
(C)State scholarships; and
(D)foundation or other charitable organization funds.
(b)Awards may be made under this subpart only to a student who—
(1)is an eligible student under section 1091 of this title; and
(2)makes application at a time and in a manner consistent with the requirements of the Secretary and that institution.
(c)(1)From among individuals who are eligible for supplemental grants for each fiscal year, the institution shall, in accordance with the agreement under section 1094 of this title, and within the amount allocated to the institution for that purpose for that year under section 1070b–3 of this title, select individuals who are to be awarded such grants and determine, in accordance with section 1070b–1 of this title, the amounts to be paid to them.
(2)(A)In carrying out paragraph (1) of this subsection, each institution of higher education shall, in the agreement made under section 1094 of this title, assure that the selection procedures—
(i)will be designed to award supplemental grants under this subpart, first, to students with exceptional need, and
(ii)will give a priority for supplemental grants under this subpart to students who receive Pell Grants and meet the requirements of section 1091 of this title.
(B)For the purpose of subparagraph (A), the term “students with exceptional need” means students with the lowest student aid indexes at the institution.
(d)If the institution’s allocation under this subpart is directly or indirectly based in part on the financial need demonstrated by students who are independent students or attending the institution on less than a full-time basis, then a reasonable proportion of the allocation shall be made available to such students.
(e)An agreement entered into pursuant to this section shall provide that funds granted to an institution of higher education may be used only to make payments to students participating in a grant program authorized under this subpart, except that an institution may use a portion of the sums allocated to it under this subpart to meet administrative expenses in accordance with section 1096 of this title.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 1070b–2, Pub. L. 89–329, title IV, § 413C, as added Pub. L. 92–318, title I, § 131(b)(1), June 23, 1972, 86 Stat. 253; amended Pub. L. 94–482, title I, § 122(b), Oct. 12, 1976, 90 Stat. 2094; Pub. L. 96–374, title IV, § 403(d), Oct. 3, 1980, 94 Stat. 1405, related to selection of recipients of supplemental educational opportunity grants and agreements with institutions, prior to the general revision of this part by Pub. L. 99–498.
Amendments
2020—Subsec. (c)(2)(B). Pub. L. 116–260 substituted “student aid indexes” for “expected family contributions”. 1998—Subsec. (d). Pub. L. 105–244 amended heading and text of subsec. (d) generally. Prior to amendment, text read as follows: “If the institution’s allocation under this subpart is directly or indirectly based in part on the financial need demonstrated by students who are independent students or attending the institution less than full time and if the total financial need of all such students attending the institution exceeds 5 percent of the total financial need of all students attending such institution, then at least 5 percent of such allotment shall be made available to such students.” 1993—Subsec. (d). Pub. L. 103–208 substituted “and” for “, a reasonable proportion of the institution’s allocation shall be made available to such students, except that” and “5 percent of the total financial need” for “5 percent of the need”. 1992—Subsec. (a)(2). Pub. L. 102–325, § 403(d), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “agrees that the Federal share of awards under this subpart will not exceed— “(A) 95 percent of such awards in fiscal year 1989, “(B) 90 percent of such awards in fiscal year 1990, and “(C) 85 percent of such awards in fiscal year 1991, except that the Federal share may be exceeded if the Secretary determines, pursuant to
Regulations
establishing objective criteria for such determinations, that a larger Federal share is required to further the purpose of this subpart; and”. Subsec. (d). Pub. L. 102–325, § 403(e), inserted “who are independent students or” after “demonstrated by students” and inserted before period at end “, except that if the total financial need of all such students attending the institution exceeds 5 percent of the need of all students attending such institution, then at least 5 percent of such allotment shall be made available to such students”. Subsec. (e). Pub. L. 102–325, § 403(f), struck out before period at end “, and may transfer such funds in accordance with the provisions of section 1095 of this title”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2020 AmendmentAmendment by Pub. L. 116–260 effective July 1, 2024, except as otherwise expressly provided, and applicable with respect to award year 2024–2025 and each subsequent award year, as determined under this chapter, see section 701(b) of Pub. L. 116–260, set out as a note under section 1001 of this title.
Effective Date
of 1998 AmendmentAmendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see section 3 of Pub. L. 105–244, set out as a note under section 1001 of this title.
Effective Date
of 1993 AmendmentAmendment by Pub. L. 103–208 effective on and after July 1, 1994, see section 5(b)(6) of Pub. L. 103–208, set out as a note under section 1051 of this title.
Effective Date
of 1992 AmendmentAmendment by Pub. L. 102–325 effective
July 23, 1992, except that changes in subsec. (a)(2) of this section, relating to Federal share for supplemental educational opportunity grant program, applicable to funds provided for such program for award years beginning on or after
July 1, 1993, see section 410 of Pub. L. 102–325, set out as a note under section 1070a of this title.
Effective Date
Section effective Oct. 17, 1986, except as otherwise provided, see section 2 of Pub. L. 99–498, set out as a note under section 1001 of this title. Pub. L. 99–498, title IV, § 401(b)(5), Oct. 17, 1986, 100 Stat. 1353, provided that: “section 413C(c)(2) of the Act [20 U.S.C. 1070b–2(c)(2)] as amended by this section shall apply to the awarding of grants under subpart 2 of part A of title IV of the Act [this subpart] for periods of enrollment beginning on or after July 1, 1987.”
Reference
Citations & Metadata
Citation
20 U.S.C. § 1070b–2
Title 20 — Education
Last Updated
Apr 6, 2026
Release point: 119-73