Chapter 28, Subchapter I, Part B—, Section 1087–2, Subsection (r) · 20 U.S.C. Chapter 28 — HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE

Contents

(r)

(1)The Association shall promptly furnish to the Secretary of Education and Secretary of the Treasury copies of all—

(A)periodic financial reports publicly distributed by the Association;

(B)reports concerning the Association that are received by the Association and prepared by nationally recognized statistical rating organizations; and

(C)

(i)financial statements of the Association within 45 days of the end of each fiscal quarter; and

(ii)reports setting forth the calculation of the capital ratio of the Association within 45 days of the end of each fiscal quarter.

(2)

(A)The Secretary of the Treasury may—

(i)appoint and fix the compensation of such auditors and examiners as may be necessary to conduct audits of the Association from time to time to determine the condition of the Association for the purpose of assessing the Association’s financial safety and soundness and to determine whether the requirements of this section and section 1087–3 of this title are being met; and

(ii)obtain the services of such experts as the Secretary of the Treasury determines necessary and appropriate, as authorized by section 3109 of title 5, to assist in determining the condition of the Association for the purpose of assessing the Association’s financial safety and soundness, and to determine whether the requirements of this section and section 1087–3 of this title are being met.

(B)Each auditor appointed under this paragraph shall conduct an audit of the Association to the extent requested by the Secretary of the Treasury and shall prepare and submit a report to the Secretary of the Treasury concerning the results of such audit. A copy of such report shall be furnished to the Association and the Secretary of Education on the date on which it is delivered to the Secretary of the Treasury.

(C)The Association shall provide full and prompt access to the Secretary of the Treasury to its books and records and other information requested by the Secretary of the Treasury.

(D)

(i)For each fiscal year beginning on or after October 1, 1996, the Secretary of the Treasury may establish and collect from the Association an assessment (or assessments) in amounts sufficient to provide for reasonable costs and expenses of carrying out the duties of the Secretary of the Treasury under this section and section 1087–3 of this title during such fiscal year. In no event may the total amount so assessed exceed, for any fiscal year, $800,000, adjusted for each fiscal year ending after September 30, 1997, by the ratio of the Consumer Price Index for All Urban Consumers (issued by the Bureau of Labor Statistics) for the final month of the fiscal year preceding the fiscal year for which the assessment is made to the Consumer Price Index for All Urban Consumers for September 1997.

(ii)Amounts collected from assessments under this subparagraph shall be deposited in an account within the Treasury of the United States as designated by the Secretary of the Treasury for that purpose. The Secretary of the Treasury is authorized and directed to pay out of any funds available in such account the reasonable costs and expenses of carrying out the duties of the Secretary of the Treasury under this section and section 1087–3 of this title. None of the funds deposited into such account shall be available for any purpose other than making payments for such costs and expenses.

(E)

(i)The Association shall obtain such information and make and keep such records as the Secretary of the Treasury may from time to time prescribe concerning—

(I)the financial risk to the Association resulting from the activities of any associated person, to the extent such activities are reasonably likely to have a material impact on the financial condition of the Association, including the Association’s capital ratio, the Association’s liquidity, or the Association’s ability to conduct and finance the Association’s operations; and

(II)the Association’s policies, procedures, and systems for monitoring and controlling any such financial risk.

(ii)The Secretary of the Treasury may require summary reports of such information to be filed no more frequently than quarterly. If, as a result of adverse market conditions or based on reports provided pursuant to this subparagraph or other available information, the Secretary of the Treasury has concerns regarding the financial or operational condition of the Association, the Secretary of the Treasury may, notwithstanding the preceding sentence and clause (i), require the Association to make reports concerning the activities of any associated person, whose business activities are reasonably likely to have a material impact on the financial or operational condition of the Association.

(iii)For purposes of this subparagraph, the term “associated person” means any person, other than a natural person, directly or indirectly controlling, controlled by, or under common control with the Association.

(F)

(i)Rates of basic pay for all auditors and examiners appointed pursuant to subparagraph (A) may be set and adjusted by the Secretary of the Treasury without regard to the provisions of chapter 51 or subchapter III of chapter 53 of title 5.

(ii)

(I)Subject to section 5373 of title 5, the Secretary of the Treasury may provide additional compensation and benefits to auditors and examiners appointed pursuant to subparagraph (A) if the same type of compensation or benefits are then being provided by any agency referred to in section 1833b of title 12 or, if not then being provided, could be provided by such an agency under applicable provisions of law, rule, or regulation.

(II)In setting and adjusting the total amount of compensation and benefits for auditors and examiners appointed pursuant to subparagraph (A), the Secretary of the Treasury shall consult with, and seek to maintain comparability with, the agencies referred to in section 1833b of title 12.

(3)The Secretary of the Treasury shall conduct such studies as may be necessary to monitor the financial safety and soundness of the Association. In the event that the Secretary of the Treasury determines that the financial safety and soundness of the Association is at risk, the Secretary of the Treasury shall inform the Chairman and ranking minority member of the Committee on Labor and Human Resources of the Senate, the Chairman and ranking minority member of the Committee on Education and Labor of the House of Representatives, and the Secretary of Education of such determination and identify any corrective actions that should be taken to ensure the safety and soundness of the Association.

(4)If the capital ratio is less than 2 percent and is greater than or equal to 1.75 percent at the end of the Association’s most recent calendar quarter the Association shall, within 60 days of such occurrence, submit to the Secretary of the Treasury a capital restoration plan, in reasonable detail, that the Association believes is adequate to cause the capital ratio to equal or exceed 2 percent within 36 months.

(5)

(A)The Secretary of the Treasury and the Association shall consult with respect to any capital restoration plan submitted pursuant to paragraph (4) and the Secretary of the Treasury shall approve such plan (or a modification thereof accepted by the Association) or disapprove such plan within 30 days after such plan is first submitted to the Secretary of the Treasury by the Association, unless the Association and Secretary of the Treasury mutually agree to a longer consideration period. If the Secretary of the Treasury approves a capital restoration plan (including a modification of a plan accepted by the Association), the Association shall forthwith proceed with diligence to implement such plan to the best of its ability.

(B)If the Secretary of the Treasury does not approve a capital restoration plan as provided in subparagraph (A), then not later than the earlier of the date the Secretary of the Treasury disapproves of such plan by written notice to the Association or the expiration of the 30-day consideration period referred to in subparagraph (A) (as such period may have been extended by mutual agreement), the Secretary of the Treasury shall submit the Association’s capital restoration plan, in the form most recently proposed to the Secretary of the Treasury by the Association, together with a report on the Secretary of the Treasury’s reasons for disapproval of such plan and an alternative capital restoration plan, to the Chairman and ranking minority member of the Senate Committee on Labor and Human Resources and to the Chairman and ranking minority member of the House Committee on Education and Labor. A copy of such submission simultaneously shall be sent to the Association and the Secretary of Education by the Secretary of the Treasury.

(C)Upon receipt of the submission by the Association, the Association shall forthwith proceed with diligence to implement the most recently proposed capital restoration plan of the Association. The Association, within 30 days after receipt from the Secretary of the Treasury of such submission, shall submit to such Chairmen and ranking minority members a written response to such submission, setting out fully the nature and extent of the Association’s agreement or the disagreement with the Secretary of the Treasury with respect to the capital restoration plan submitted to the Secretary of the Treasury and any findings of the Secretary of the Treasury.

(6)

(A)If the capital ratio is less than 1.75 percent and is greater than or equal to 1 percent at the end of the Association’s most recent calendar quarter, the Association shall submit to the Secretary of the Treasury within 60 days after such occurrence a capital restoration plan (or an appropriate modification of any plan previously submitted or approved under paragraph (4)) to increase promptly its capital ratio to equal or exceed 1.75 percent. The Secretary of the Treasury and the Association shall consult with respect to any plan or modified plan submitted pursuant to this paragraph. The Secretary of the Treasury shall approve such plan or modified plan (or a modification thereof accepted by the Association) or disapprove such plan or modified plan within 30 days after such plan or modified plan is first submitted to the Secretary of the Treasury by the Association, unless the Association and Secretary of the Treasury mutually agree to a longer consideration period. If the Secretary of the Treasury approves a plan or modified plan (including a modification of a plan accepted by the Association), the Association shall forthwith proceed with diligence to implement such plan or modified plan to the best of the Association’s ability.

(B)If the Secretary of the Treasury disapproves a capital restoration plan or modified plan submitted pursuant to subparagraph (A), then, not later than the earlier of the date the Secretary of the Treasury disapproves of such plan or modified plan (by written notice to the Association) or the expiration of the 30-day consideration period described in subparagraph (A) (as such period may have been extended by mutual agreement), the Secretary of the Treasury shall prepare and submit an alternative capital restoration plan, together with a report on his reasons for disapproval of the Association’s plan or modified plan, to the Chairman and ranking minority member of the Committee on Labor and Human Resources of the Senate and to the Chairman and ranking minority member of the Committee on Education and Labor of the House of Representatives. A copy of such submission simultaneously shall be sent to the Association and the Secretary of Education by the Secretary of the Treasury. The Association, within 5 days after receipt from the Secretary of the Treasury of such submission, shall submit to the Chairmen and ranking minority members of such Committees, and the Secretary of the Treasury, a written response to such submission, setting out fully the nature and extent of the Association’s agreement or disagreement with the Secretary of the Treasury with respect to the disapproved plan and the alternative plan of the Secretary of the Treasury and any findings of the Secretary of the Treasury.

(C)Congress shall have 60 legislative days after the date on which Congress receives the alternative plan under subparagraph (B) from the Secretary of the Treasury to review such plan. If Congress does not take statutory action with respect to any such plan within such 60-day period, the Association shall immediately proceed with diligence to implement the alternative capital restoration plan of the Secretary of the Treasury under subparagraph (B). If Congress is out of session when any such alternative plan is received, such 60-day period shall begin on the first day of the next session of Congress.

(7)If the capital ratio of the Association does not equal or exceed 1.75 percent at the end of the Association’s most recent calendar quarter, the Secretary of the Treasury may, until the capital ratio equals or exceeds 1.75 percent, take any one or more of the following actions:

(A)Limit any increase in, or order the reduction of, any liabilities of the Association, except as necessary to fund student loan purchases and warehousing advances.

(B)Restrict or eliminate growth of the Association’s assets, other than student loans purchases and warehousing advances.

(C)Restrict the Association from making any capital distribution.

(D)Require the Association to issue new capital in any form and in any amount sufficient to restore at least a 1.75 percent capital ratio.

(E)Prohibit the Association from increasing for any executive officer any compensation including bonuses at a rate exceeding that officer’s average rate of compensation during the previous 12 calendar months and prohibiting the Board from adopting any new employment severance contracts.

(8)

(A)If the capital ratio is less than 1 percent at the end of the Association’s most recent calendar quarter and the Association has already submitted a capital restoration plan to the Secretary of the Treasury pursuant to paragraph (4) or (6)(A), the Association shall forthwith proceed with diligence to implement the most recently proposed plan with such modifications as the Secretary of the Treasury determines are necessary to cause the capital ratio to equal or exceed 2 percent within 60 months.

(B)If the capital ratio is less than 1 percent at the end of the Association’s most recent calendar quarter and the Association has not submitted a capital restoration plan to the Secretary of the Treasury pursuant to paragraph (4) or (6)(A), the Association shall—

(i)within 14 days of such occurrence submit a capital restoration plan to the Secretary of the Treasury which the Association believes is adequate to cause the capital ratio to equal or exceed 2 percent within 60 months; and

(ii)forthwith proceed with diligence to implement such plan with such modifications as the Secretary of the Treasury determines are necessary to cause the capital ratio to equal or exceed 2 percent within 60 months.

(C)Immediately upon a determination under subparagraph (A) or (B) to implement a capital restoration plan, the Secretary of the Treasury shall submit the capital restoration plan to be implemented to the Chairman and ranking minority member of the Committee on Labor and Human Resources of the Senate, the Chairman and ranking minority member of the Committee on Education and Labor of the House of Representatives, and the Secretary of Education.

(9)The Association shall submit a copy of its capital restoration plan, modifications proposed to the Secretary of the Treasury, and proposed modifications received from the Secretary of the Treasury to the Congressional Budget Office and Government Accountability Office upon their submission to the Secretary of the Treasury or receipt from the Secretary of the Treasury. Notwithstanding any other provision of law, the Congressional Budget Office and Government Accountability Office shall maintain the confidentiality of information received pursuant to the previous sentence. In the event that the Secretary of the Treasury does not approve a capital restoration plan as provided in paragraph (5)(A) or (6)(A), or in the event that a capital restoration plan is modified by the Secretary of the Treasury pursuant to paragraph (6)(B) or (8), the Congressional Budget Office and Government Accountability Office shall each submit a report within 30 days of the Secretary of the Treasury’s submission to the Chairmen and ranking minority members as required in paragraphs (5)(B), (6)(B), and (8)(C) to such Chairmen and ranking members—

(A)analyzing the financial condition of the Association;

(B)analyzing the capital restoration plan and reasons for disapproval of the plan contained in the Secretary of the Treasury’s submission made pursuant to paragraph (5)(B), or the capital restoration plan proposed by the Association and the modifications made by the Secretary of the Treasury pursuant to paragraph (6)(B) or (8);

(C)analyzing the impact of the capital restoration plan and reasons for disapproval of the plan contained in the Secretary of the Treasury’s submission made pursuant to paragraph (5)(B), or the impact of the capital restoration plan proposed by the Association and the modifications made by the Secretary of the Treasury pursuant to paragraph (6)(B) or (8), and analyzing the impact of the recommendations made pursuant to subparagraph (D) of this paragraph, on—

(i)the ability of the Association to fulfill its purpose and authorized activities as provided in this section, and

(ii)the operation of the student loan programs; and

(D)recommending steps which the Association should take to increase its capital ratio without impairing its ability to perform its purpose and authorized activities as provided in this section.

(10)The Secretary of Education shall review the Secretary of the Treasury’s submission required pursuant to paragraph (5)(B), (6)(B), or (8) and shall submit a report within 30 days to the Chairman and ranking minority member of the Senate Committee on Labor and Human Resources and to the Chairman and ranking minority member of the House Committee on Education and Labor—

(A)describing any administrative or legislative provisions governing the student loan programs which contributed to the decline in the Association’s capital ratio; and

(B)recommending administrative and legislative changes in the student loan programs to maintain the orderly operation of such programs and to enable the Association to fulfill its purpose and authorized activities consistent with the capital ratio specified in paragraph (4).

(11)The Association shall be deemed in compliance with the capital ratios described in paragraphs (4) and (6)(A) if the Association is rated in 1 of the 2 highest full rating categories (such categories to be determined without regard to designations within categories) by 2 nationally recognized statistical rating organizations, determined without regard to the Association’s status as a federally chartered corporation.

(12)Notwithstanding any other provision of law, the Secretary of the Treasury, the Secretary of Education, the Congressional Budget Office, and the Government Accountability Office shall not disclose any information treated as confidential by the Association or the Association’s associated persons and obtained pursuant to this subsection. Nothing in this paragraph shall authorize the Secretary of the Treasury, the Secretary of Education, the Congressional Budget Office, and the Government Accountability Office to withhold information from Congress, or prevent the Secretary of Education, the Congressional Budget Office, and the Government Accountability Office from complying with a request for information from any other Federal department or agency requesting the information for purposes within the scope of its jurisdiction, or complying with an order of a court of the United States in an action brought by the United States. For purposes of section 552 of title 5, this paragraph shall be considered a statute described in subsection (b)(3) of such section 552.

(13)The Secretary of Education or the Secretary of the Treasury, as appropriate, may request that the Attorney General bring an action in the United States District Court for the District of Columbia for the enforcement of any provision of this section, or may, under the direction or control of the Attorney General, bring such an action. Such court shall have jurisdiction and power to order and require compliance with this section.

(14)

(A)For any fiscal quarter ending after January 1, 2000, the Association shall have a capital ratio of at least 2.25 percent. The Secretary of the Treasury may, whenever such capital ratio is not met, take any one or more of the actions described in paragraph (7), except that—

(i)the capital ratio to be restored pursuant to paragraph (7)(D) shall be 2.25 percent; and

(ii)if the relevant capital ratio is in excess of or equal to 2 percent for such quarter, the Secretary of the Treasury shall defer taking any of the actions set forth in paragraph (7) until the next succeeding quarter and may then proceed with any such action only if the capital ratio of the Association remains below 2.25 percent.

(B)The provisions of paragraphs (4), (5), (6), (8), (9), (10), and (11) shall be of no further application to the Association for any period after January 1, 2000.

(15)As used in this subsection:

(A)The term “nationally recognized statistical rating organization” means any nationally recognized statistical rating organization, as that term is defined in section 78c(a) of title 15.

(B)The term “capital ratio” means the ratio of total stockholders’ equity, as shown on the Association’s most recent quarterly consolidated balance sheet prepared in the ordinary course of its business, to the sum of—

(i)the total assets of the Association, as shown on the balance sheet prepared in the ordinary course of its business; and

(ii)50 percent of the credit equivalent amount of the following off-balance sheet items of the Association as of the date of such balance sheet—

(I)all financial standby letters of credit and other irrevocable guarantees of the repayment of financial obligations of others; and

(II)all interest rate contracts and exchange rate contracts, including interest exchange agreements, floor, cap, and collar agreements and similar arrangements.

For purposes of this subparagraph, the calculation of the credit equivalent amount of the items set forth in clause (ii) of this subparagraph, the netting of such items and eliminations for the purpose of avoidance of double-counting of such items shall be made in accordance with the measures for computing credit conversion factors for off-balance sheet items for capital maintenance purposes established for commercial banks from time to time by the Federal Reserve Board, but without regard to any risk weighting provisions in such measures.

(C)The term “legislative days” means only days on which either House of Congress is in session.

(16)The Association may pay dividends in the form of cash or noncash distributions so long as at the time of the declaration of such dividends, after giving effect to the payment of such dividends as of the date of such declaration by the Board of Directors of the Association, the Association’s capital would be in compliance with the capital standards set forth in this section.

(17)Prior to the payment of any dividend under paragraph (16), the Association shall certify to the Secretary of the Treasury that the payment of the dividend will be made in compliance with paragraph (16) and shall provide copies of all calculations needed to make such certification.

United States Government work; public domain under 17 U.S.C. § 105.

Defined terms · 200

Show every defined term

accredited
means currently certified by a nationally recognized accrediting agency or making satisfactory progress toward achieving accreditation.
active duty
has the meaning given such term in section 101(d)(1) of title 10, except that such term does not include active duty for training or attendance at a service school.
adjunct content specialist
means an individual who—
adjusted gross income
means—
Advisory Board
means the Advisory Board established by section 1066f of this title.
affected individual
means an individual who—
affected institution
means an institution of higher education that—
affiliate
means a person that controls, is controlled by, or is under common control with another person.
affiliated with an eligible lender
means an individual who is, or within 5 years of election to the Board has been, an employee, officer, director, or similar official of—
agent
has the meaning given the term in section 1019 of this title.
Alaska Native
has the meaning given the term in section 7546 of this title;
Alaska Native-serving institution
means an institution of higher education that—
allied health professional
means an allied health professional as defined in section 295p(5) of title 42 who—
applicable amount
means 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which—
applicable monthly payment
means, when used with respect to a borrower, the amount equal to—
area studies
means a program of comprehensive study of the aspects of a society or societies, including study of its history, culture, economy, politics, international relations and languages;
articulation agreement
means an agreement between institutions of higher education that specifies the acceptability of courses in transfer toward meeting specific degree requirements.
arts and sciences
means—
Asian American
has the meaning given the term “Asian” in the Office of Management and Budget’s Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity as published on October 30, 1997 (62 Fed.
Asian American and Native American Pacific Islander-serving institution
means an institution of higher education that—
assets
means the amount in checking and savings accounts, time deposits, money market funds, investments, trusts, stocks, bonds, derivatives, securities, mutual funds, tax shelters, qualified education benefits (except as provided in paragraph (3)), the annual amount of child support received and the net value of real estate, vacation homes, income producing property, and business and farm assets, determined in accordance with section 1087rr(c) of this title.
assistance
means the provision of technical support, training, materials, technical assistance, and financial assistance.
associated person
means any person, other than a natural person, directly or indirectly controlling, controlled by, or under common control with the Association.
Association
means the Student Loan Marketing Association.
athletically related student aid
means any scholarship, grant, or other form of financial assistance the terms of which require the recipient to participate in a program of intercollegiate athletics at an institution of higher education in order to be eligible to receive such assistance.
audiologist
means an individual who—
authorizing committees
means the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Labor of the House of Representatives.
average cost of attendance
means the average of the attendance costs for undergraduate students and for graduate and professional students, which shall include (i) tuition and fees determined in accordance with subparagraph (B), (ii) standard living expenses determined in accordance with subparagraph (C), and (iii) books and supplies determined in accordance with subparagraph (D).
borrower
means an individual who is a new borrower on the date such individual applies for a loan under this part for which the first disbursement is made on or after July 1, 1993.
bundle
means one or more college textbooks or other supplemental materials that may be packaged together to be sold as course materials for one price.
business assets
means property that is used in the operation of a trade or business, including real estate, inventories, buildings, machinery, and other equipment, patents, franchise rights, and copyrights.
campus
means—
capital project
means, subject to section 1066c(b) of this title, the repair, renovation, or, in exceptional circumstances, the construction or acquisition, of—
capital ratio
means the ratio of total stockholders’ equity, as shown on the Association’s most recent quarterly consolidated balance sheet prepared in the ordinary course of its business, to the sum of— For purposes of this subparagraph, the calculation of the credit equivalent amount of the items set forth in clause (ii) of this subparagraph, the netting of such items and eliminations for the purpose of avoidance of double-counting of such items shall be made in accordance with the measures for computing credit conversion factors for off-balance sheet items for capital maintenance purposes established for commercial banks from time to time by the Federal Reserve Board, but without regard to any risk weighting provisions in such measures.
children from low-income families
means children described in section 6333(c)(1)(A) of this title.
children with disabilities
has the meaning set forth in section 1401 of this title.
civil legal assistance attorney
means an attorney who—
clearinghouse
means a public or private entity that processes or facilitates the processing of nonstandard data elements into data elements conforming to standards adopted under this section.
cohort default rate
means, for any award year in which 30 or more current and former students at the institution enter repayment on loans under this part (received for attendance at the institution), the percentage of those current and former students who enter repayment on such loans (received for attendance at that institution) in that award year who default before the end of the following award year.
College Navigator website
means the College Navigator website operated by the Department and includes any successor website.
college textbook
means a textbook or a set of textbooks, used for, or in conjunction with, a course in postsecondary education at an institution of higher education.
combination of institutions of higher education
means a group of institutions of higher education that have entered into a cooperative arrangement for the purpose of carrying out a common objective, or a public or private nonprofit agency, organization, or institution designated or created by a group of institutions of higher education for the purpose of carrying out a common objective on the group’s behalf.
commercial product
has the meaning given the term in section 103 of title 41.
commercial service
has the meaning given the term in section 103a of title 41.
community college
has the meaning given the term “junior or community college” in section 1058(f) of this title.
community service
means services, including direct service, planning, and applied research which are identified by an institution of higher education, through formal or informal consultation with local nonprofit, governmental, and community-based organizations, and which—
community services
means services which are identified by an institution of higher education, through formal or informal consultation with local nonprofit, governmental, and community-based organizations, as designed to improve the quality of life for community residents, particularly low-income individuals, or to solve particular problems related to their needs, including—
competitive procedures
has the meaning given the term in section 152 of title 41.
comprehensive foreign language and area or international studies center
means an administrative unit of a university that contributes significantly to the national interest in advanced research and scholarship, employs a critical mass of scholars in diverse disciplines related to a geographic concentration, offers intensive language training in languages of its area specialization, maintains important library collections related to the area, and makes training available in language and area studies to a graduate, postgraduate, and undergraduate clientele;
comprehensive student work-learning-service program
means a student work-learning-service program that—
comprehensive transition and postsecondary program for students with intellectual disabilities
means a degree, certificate, or nondegree program that meets each of the following:
Consumer Price Index
means the Consumer Price Index for All Urban Consumers published by the Department of Labor.
consumer reporting agency
has the meaning given the term “consumer reporting agency that compiles and maintains files on consumers on a nationwide basis” in Section 1 1681a(p) of title 15.
contract
means any agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source, for the direct benefit or use of either of the parties;
cooperative education
means the provision of alternating or parallel periods of academic study and public or private employment to give students work experiences related to their academic or occupational objectives and an opportunity to earn the funds necessary for continuing and completing their education.
cooperative grant
means a grant that assists groups of nonprofit accredited colleges and universities to work together to conduct a science improvement program.
core academic subjects
means English, reading or language arts, mathematics, science, foreign languages, civics and government, economics, arts, history, and geography.
cost of attendance
means—
course schedule
means a listing of the courses or classes offered by an institution of higher education for an academic period, as defined by the institution.
covered institution
means any institution of higher education, as such term is defined in section 1002 of this title, that receives any Federal funding or assistance.
covered period
means the period of the 3 years immediately preceding the date of a determination made under paragraph (2).
critical foreign language
means each of the languages contained in the list of critical languages designated by the Secretary in the Federal Register on August 2, 1985 (50 Fed.
current award year
means the award year during which the participating institution indicates the institution’s intention to cease participation.
current repayment status
means that the borrower is not delinquent in the payment of any principal or interest on the loan.
default
includes only such defaults as have existed for (1) 270 days in the case of a loan which is repayable in monthly installments, or (2) 330 days in the case of a loan which is repayable in less frequent installments.
default aversion activities
means activities of a guaranty agency that are directly related to providing collection assistance to the lender on a delinquent loan, prior to the loan’s being legally in a default status, including due diligence activities required pursuant to regulations of the Secretary.
default collection activities
means activities of a guaranty agency that are directly related to the collection of the loan on which a default claim has been paid to the participating lender, including the due diligence activities required pursuant to regulations of the Secretary.
default reduction activities
means activities to reduce student loan defaults that improve, strengthen, and expand default prevention activities, such as—
Department
means the Department of Education.
dependent
means an individual who is a dependent under section 152 of title 26.
dependent of the parent
means the student who is deemed to be a dependent student when applying for aid under this subchapter, and any other person who lives with and receives more than one-half of their support from the parent (or parents) and will continue to receive more than half of their support from the parent (or parents) during the award year.
dependent of the student
means the student’s dependent children and other persons (except the student’s spouse) who live with and receive more than one-half of their support from the student and will continue to receive more than half of their support from the student during the award year.
design projects
means projects that assist minority institutions that do not have their own appropriate resources or personnel to plan and develop long-range science improvement programs.
designated bonding authority
means the private, for-profit corporation selected by the Secretary pursuant to section 1066d(1) of this title for the purpose of issuing taxable capital project construction bonds in furtherance of the purposes of this part.
diploma mill
means an entity that—
disability
has the same meaning given that term under section 12102(2) of title 42.
disaster-affected student
means a student enrolled at an eligible institution who—
disposable pay
means that part of the compensation of any individual from an employer remaining after the deduction of any amounts required by law to be withheld.
dissolution date
means September 30, 2008, or such earlier date as the Secretary of Education permits the transfer of remaining obligations in accordance with subsection (d).
distance education
means education that uses one or more of the technologies described in subparagraph (B)—
early childhood education program
means—
early childhood educator
means an individual with primary responsibility for the education of children in an early childhood education program.
early intervention services
has the meaning given the term in section 1432 of this title.
education loan
has the meaning given the term in section 1019 of this title.
educational and general expenditures
means the total amount expended by an institution for instruction, research, public service, academic support (including library expenditures), student services, institutional support, scholarships and fellowships, operation and maintenance expenditures for the physical plant, and any mandatory transfers that the institution is required to pay by law.
educational programs abroad
means programs of study, internships, or service learning outside the United States which are part of a foreign language or other international curriculum at the undergraduate or graduate education levels;
educational service agency
has the meaning given the term in section 7801 of this title.
elementary school
has the same meaning given that term under section 7801 of this title.
eligible applicant
means an applicant who meets at least one of the following criteria:
eligible borrower
means a borrower who—
eligible career pathway program
means a program that combines rigorous and high-quality education, training, and other services that—
eligible consortium
means a partnership of 2 or more entities that have agreed to work together to carry out this section that—
eligible early childhood education program
means—
eligible entity
means—
eligible Federal Direct Loan
means a Federal Direct Stafford Loan, Federal Direct PLUS Loan, or Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan.
eligible Federal PLUS Loan
means a loan described in section 1078–2 of this title made to a parent of a dependent student who is a new borrower on or after July 1, 2009.
eligible individual
means an individual who—
eligible institution
means any such institution described in section 1002 of this title.
eligible lender
means—
eligible loan
means a loan—
eligible military borrower
means an individual who—
eligible not-for-profit holder
means an eligible lender under subsection (d) (except for an eligible lender described in subsection (d)(1)(E)) that requests a special allowance payment under section 1087–1(b)(2)(I)(vi)(II) of this title or a payment under section 1141 of this title and that is—
eligible partnership
means an entity that—
eligible preschool program
means a program that—
eligible program
means a program of at least—
eligible recipient
means a consortium consisting of 1 or more of the following entities:
eligible student
means a student who—
eligible student loans
means loans—
emergency
has the meaning given such term in section 5122(1) of title 42.
endowment fund
means a fund that—
endowment fund corpus
means an amount equal to the grant or grants awarded under this section plus an amount equal to such grant or grants provided by the institution.
endowment fund income
means an amount equal to the total value of the endowment fund established under this section minus the endowment fund corpus.
enrollment and repayment status management
means activities of a guaranty agency that are directly related to ascertaining the student’s enrollment status, including prompt notification to the lender of such status, an audit of the note or written agreement to determine if the provisions of that note or agreement are consistent with the records of the guaranty agency as to the principal amount of the loan guaranteed, and an examination of the note or agreement to assure that the repayment provisions are consistent with the provisions of this part.
enrollment of needy students
means the enrollment at an institution of higher education with respect to which not less than 50 percent of the undergraduate students enrolled in an academic program leading to a degree—
essential components of reading instruction
has the meaning given the term in section 6368 of this title as such section was in effect on the day before December 10, 2015.
excepted consolidation loan
means—
excepted loan
means a loan with an outstanding balance that is—
excepted PLUS loan
means a loan under section 1078–2 of this title, or a Federal Direct PLUS Loan, that is made, insured, or guaranteed on behalf of a dependent student.
excess consolidation proceeds
means, with respect to any guaranty agency for any Federal fiscal year beginning on or after October 1, 2009, the proceeds of consolidation of defaulted loans under this subchapter that exceed 45 percent of the agency’s total collections on defaulted loans in such Federal fiscal year.
excludable income
means—
exemplary teacher
has the meaning given the term in section 7801 of this title as such section was in effect on the day before December 10, 2015.
exempt claims
means claims with respect to loans for which it is determined that the borrower (or the student on whose behalf a parent has borrowed), without the lender’s or the institution’s knowledge at the time the loan was made, provided false or erroneous information or took actions that caused the borrower or the student to be ineligible for all or a portion of the loan or for interest benefits thereon.
export education
means educating, teaching and training to provide general knowledge and specific skills pertinent to the selling of goods and services to other countries, including knowledge of market conditions, financial arrangements, laws and procedures;
family size
has the meaning given the term in section 1087vv(k) of this title;
Federal and State student financial assistance
means any grant, loan, work assistance, tuition assistance, scholarship, fellowship, or other form of financial aid for pursuing a postsecondary education that is—
feeder pattern
means a secondary school and the elementary schools and middle schools that channel students into that secondary school.
first-generation college student
has the meaning given the term in section 1070a–11(h) of this title.
foreign source
means—
free institution
means an institution that emerged out of Western civilization, such as democracy, constitutional government, individual rights, market economics, religious freedom and religious tolerance, and freedom of thought and inquiry.
Freely Associated States
means the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
full-time equivalent students
means the sum of the number of students enrolled full time at an institution, plus the full-time equivalent of the number of students enrolled part time (determined on the basis of the quotient of the sum of the credit hours of all part-time students divided by 12) at such institution.
funding
means any payment under this part from the Secretary to the eligible institution or its assignee in fulfillment of the insurance obligations of the Secretary pursuant to an agreement under section 1066b of this title.
gang-related offense
means an offense that involves the circumstances described in subparagraph (B) and that is—
gift
means any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than a de minimus amount.
gifted and talented
has the same meaning given that term under section 7801 of this title.
Governor
means the chief executive officer of a State.
graduate
means an individual who has attended an institution for at least three semesters and fulfilled academic requirements for undergraduate studies in not more than 5 consecutive school years.
graduate student
means a student enrolled in a program of study that awards a graduate credential (other than a professional degree) upon completion of the program.
grantee
means Teach For America, Inc.
guaranty agency
means any State or nonprofit private institution or organization with which the Secretary has an agreement under section 1078(b) of this title.
guidance counselor
means an individual who works with at-risk youth on a one-on-one basis, to establish a supportive relationship with such at-risk youth and to provide such at-risk youth with academic assistance and exposure to new experiences that enhance their ability to become responsible citizens.
health facility
means an Indian health service center, a Native Hawaiian health center, a hospital, a federally qualified health center, a rural health clinic, a nursing home, a home health agency, a hospice program, a public health clinic, a State or local department of public health, a skilled nursing facility, or an ambulatory surgical center.
high-need early childhood education program
means an early childhood education program serving children from low-income families that is located within the geographic area served by a high-need local educational agency.
high-need local educational agency
has the meaning given such term in section 1021 of this title.
high-need school
means a school that, based on the most recent data available, meets one or both of the following:
high-risk children
means individuals under the age of 21 who are low-income or at risk of abuse or neglect, have been abused or neglected, have serious emotional, mental, or behavioral disturbances, reside in placements outside their homes, or are involved in the juvenile justice system.
Hispanic-serving institution
has the meaning given the term in section 1101a of this title;
historically Black college and university
has the meaning given the term “part B institution” in section 1061 of this title;
holder
means an eligible lender who owns a loan.
Holding Company
means the new business corporation established pursuant to this section by the Association under the laws of any State of the United States or the District of Columbia for the purposes of the reorganization and restructuring described in subsection (a).
homeless youth
has the meaning given the term “homeless children and youths” in section 11434a of title 42.
Indian
has the meaning given the term in section 2 of the Tribally Controlled Colleges and Universities Assistance Act of 1978 [25 U.S.C. 1801].
Indian tribe
has the meaning given the term in section 2 of the Tribally Controlled Colleges and Universities Assistance Act of 1978 [25 U.S.C. 1801].
induction program
means a formalized program for new teachers during not less than the teachers’ first two years of teaching that is designed to provide support for, and improve the professional performance and advance the retention in the teaching field of, beginning teachers.
infants, toddlers, children, and youth with disabilities
means children with disabilities and infants and toddlers with disabilities as defined in sections 1401 and 1432 of this title, respectively, and the term “early intervention services” has the meaning given the term in section 1432 of this title.
institution
means any institution, public or private, or, if a multicampus institution, any single campus of such institution, in any State, that—
institution affected by a Gulf hurricane disaster
means an institution of higher education that—
institution of higher education
has the meaning given such term in section 1001(a) of this title.
institutional grant
means a grant that supports the implementation of a comprehensive science improvement plan, which may include any combination of activities for improving the preparation of minority students for careers in science.
insurance beneficiary
means the insured or its authorized representative assigned in accordance with section 1079(d) of this title.
integrated textbook
means a college textbook that is—
interest
includes accredited value or any other payment constituting interest on an obligation.
international business
means profit-oriented business relationships conducted across national boundaries and includes activities such as the buying and selling of goods, investments in industries, the licensing of processes, patents and trademarks, and the supply of services;
internationalization of curricula
means the incorporation of international or comparative perspectives in existing courses of study or the addition of new components to the curricula to provide an international context for American business education;
junior or community college
means an institution of higher education—
legislative days
means only days on which either House of Congress is in session.
limited English proficient
has the meaning given the term “English learner” in section 7801 of this title.
line of credit
means an arrangement or agreement between the lender and the borrower whereby a loan is paid out by the lender to the borrower in annual installments, or whereby the lender agrees to make, in addition to the initial loan, additional loans in subsequent years.
loan
means a loan made to an eligible institution under the provisions of this part and pursuant to an agreement with the Secretary.
local educational agency
has the same meaning given that term under section 7801 of this title.
low-income communities
means communities in which there is a high concentration of children eligible to be counted under section 6333(c) of this title.
low-income community
means a school attendance area (as defined in section 6313(a)(2)(A) of this title)—
low-income individual
has the meaning given such term in section 1070a–11(h) of this title.
low-income student
means a student—
major disaster
has the meaning given the term in section 5122(2) of title 42.
means-tested Federal benefit program
means any of the following:
member of a qualifying Federal service
means—
military operation
means a contingency operation as such term is defined in section 101(a)(13) of title 10.
minimum Federal Pell Grant
means the minimum amount of a Federal Pell Grant that shall be awarded to a student for any academic year in which that student is attending full time, which shall be equal to 10 percent of the total maximum Federal Pell Grant for such academic year.
minority
means American Indian, Alaskan Native, Black (not of Hispanic origin), Hispanic (including persons of Mexican, Puerto Rican, Cuban, and Central or South American origin), Pacific Islander or other ethnic group underrepresented in science and engineering.
minority institution
has the meaning given the term in section 1067k of this title.
modeling and simulation
means a field of study related to the application of computer science and mathematics to develop a level of understanding of the interaction of the parts of a system and of a system as a whole.
mortgage loan
means an extension of credit to a borrower that is secured by the primary residence of the borrower.
national emergency
means the national emergency by reason of certain terrorist attacks declared by the President on September 14, 2001, or subsequent national emergencies declared by the President by reason of terrorist attacks.
nationally recognized statistical rating organization
means any nationally recognized statistical rating organization, as that term is defined in section 78c(a) of title 15.
Native American
means an individual who is of a tribe, people, or culture that is indigenous to the United States.
Native American Pacific Islander
means any descendant of the aboriginal people of any island in the Pacific Ocean that is a territory or possession of the United States.
Native American-serving nontribal institution
means an institution of higher education that—
Native American-serving, nontribal institution
means an institution of higher education, as defined in section 1001(a) of this title, that, at the time of application—
Native Hawaiian
has the meaning given the term in section 7517 of this title.
Native Hawaiian-serving institution
means an institution of higher education which—
net price
means the average yearly price actually charged to first-time, full-time undergraduate students receiving student aid at an institution of higher education after deducting such aid, which shall be determined by calculating the difference between—
net value
means the market value at the time of application of the assets (as defined in subsection (f)), minus the outstanding liabilities or indebtedness against the assets.
noncampus building or property
means—
nondepartmental student financial assistance program
means any grant, loan, scholarship, fellowship, or other form of financial aid for students pursuing a postsecondary education that is—
nontraditional student
means an individual who—
nurse
means a nurse who meets all of the following:
occupational therapist
means an individual who—
officer
has the meaning given the term in section 1019 of this title.
operating expenses
means expenditures on lodging and meals, transportation, officials, uniforms and equipment.