U.S. Code > Title 20 Education > CHAPTER 28—HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE (§§ 1001—1161aa1) > SUBCHAPTER IV—STUDENT ASSISTANCE (§§ 1070—1099e) > Part A—Grants to Students in Attendance at Institutions of Higher Education (§§ 1070—1070h) > subpart 3—federal supplemental educational opportunity grants (§§ 1070b—1070b4) > § 1070b-2. Agreements with institutions; selection of recipients

§ 1070b-2. Agreements with institutions; selection of recipients

(a) Institutional eligibility
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) Eligibility for selection
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) Selection of individuals and determination of amount of awards
(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 expected family contributions at the institution.
(d) Use of funds for less-than-full-time students
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) Use and transfer of funds for administrative expenses
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.