§ 1141. College access challenge grant program
(a)
Authorization and appropriation
There are authorized to be appropriated, and there are appropriated, to carry out this section $66,000,000 for each of the fiscal years 2008 and 2009. In addition to the amount authorized and appropriated under the preceding sentence, there are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.
(b)
Program authorized
(1)
Grants authorized
From amounts appropriated under subsection (a), the Secretary shall, subject to the availability of appropriations, award grants, from allotments under subsection (c), to States (and to philanthropic organization,[1] as appropriate under paragraph (3)) having applications approved under subsection (d), to enable the State (or philanthropic organization) to pay the Federal share of the costs of carrying out the activities and services described in subsection (f).
(2)
Federal share; non-Federal share
(A)
Federal share
The amount of the Federal share under this section for a fiscal year shall be equal to 2/3 of the costs of the activities and services described in subsection (f) that are carried out under the grant.
(B)
Non-Federal share
The amount of the non-Federal share under this section shall be equal to 1/3 of the costs of the activities and services described in subsection (f). The non-Federal share may be in cash or in-kind, and may be provided from State resources, contributions from private organizations, or both.
(3)
Reduction for failure to pay non-Federal share
If a State fails to provide the full non-Federal share required under this subsection, the Secretary shall reduce the amount of the grant payment under this section proportionately, and may award the proportionate reduction amount of the grant directly to a philanthropic organization, as defined in subsection (i), to carry out this section.
(4)
Temporary ineligibility for subsequent payments
(c)
Determination of allotment
(1)
Amount of allotment
Subject to paragraph (2), in making grant payments to grantees under this section, the allotment to each grantee for a fiscal year shall be equal to the sum of—
(A)
the amount that bears the same relation to 50 percent of the amount appropriated under subsection (a) for such fiscal year as the number of residents in the State aged 5 through 17 who are living below the poverty line applicable to the resident’s family size (as determined under section
9902
(2) of title
42) bears to the total number of such residents in all States; and
(B)
the amount that bears the same relation to 50 percent of the amount appropriated under subsection (a) for such fiscal year as the number of residents in the State aged 15 through 44 who are living below the poverty line applicable to the individual’s family size (as determined under section
9902
(2) of title
42) bears to the total number of such residents in all States.
(d)
Submission and contents of application
(1)
In general
For each fiscal year for which a grantee desires a grant payment under subsection (b), the State agency with jurisdiction over higher education, or another agency designated by the Governor or chief executive of the State to administer the program under this section, or a philanthropic organization, in accordance with subsection (b)(3), shall submit an application to the Secretary at such time, in such manner, and containing the information described in paragraph (2).
(2)
Application
An application submitted under paragraph (1) shall include the following:
(A)
A description of the grantee’s capacity to administer the grant under this section and report annually to the Secretary on the activities and services described in subsection (f).
(B)
A description of the grantee’s plan for using the grant funds to meet the requirements of subsections (f) and (g), including plans for how the grantee will make special efforts to—
(e)
Subgrants to nonprofit organizations
A State receiving a payment under this section may elect to make a subgrant to one or more nonprofit organizations in the State, including an eligible not-for-profit holder (as described in section
1085
(p) of this title), or those nonprofit organizations that have agreements with the Secretary under section
1078
(b) of this title, or a partnership of such organizations, to carry out activities or services described in subsection (f), if the nonprofit organization or partnership—
(f)
Allowable uses
(1)
In general
Subject to paragraph (3), a grantee may use a grant payment under this section only for the following activities and services, pursuant to the conditions under subsection (g):
(B)
Information on financing options for postsecondary education and activities that promote financial literacy and debt management among students and families.
(C)
Outreach activities for students who may be at risk of not enrolling in or completing postsecondary education.
(D)
Assistance in completion of the Free Application for Federal Student Aid or other common financial reporting form under section
1090
(a) of this title.
(F)
Professional development for guidance counselors at middle schools and secondary schools, and financial aid administrators and college admissions counselors at institutions of higher education, to improve such individuals’ capacity to assist students and parents with—
(i)
understanding—
(II)
State eligibility requirements for Academic Competitiveness Grants or National SMART Grants under section
1070a–1 of this title, and other financial assistance that is dependent upon a student’s coursework;
(iii)
applying for Federal student financial assistance and other State, local, and private student financial assistance and scholarships;
(g)
Special conditions
(1)
Availability to students and families
A grantee receiving a grant payment under this section shall—
(A)
make the activities and services described in subparagraphs (A) through (F) of subsection (f)(1) that are funded under the payment available to all qualifying students and families in the State;
(C)
not charge any student or parent a fee or additional charge to participate in the activities or services; and
(D)
in the case of an activity providing grant aid, not require a student to meet any condition other than eligibility for Federal financial assistance under subchapter IV of this chapter and part
C of subchapter
I of chapter
34 of title
42, except as provided for in the loan cancellation or repayment or interest rate reductions described in subsection (f)(1)(G).
(2)
Priority
A grantee receiving a grant payment under this section shall, in carrying out any activity or service described in subsection (f)(1) with the grant funds, prioritize students and families who are living below the poverty line applicable to the individual’s family size (as determined under section
9902
(2) of title
42).
(3)
Disclosures
(A)
Organizational disclosures
In the case of a State that has chosen to make a payment to an eligible not-for-profit holder in the State in accordance with subsection (e), the holder shall clearly and prominently indicate the name of the holder and the nature of the holder’s work in connection with any of the activities carried out, or any information or services provided, with such funds.
(B)
Informational disclosures
Any information about financing options for higher education provided through an activity or service funded under this section shall—
(i)
include information to students and the students’ parents of the availability of Federal, State, local, institutional, and other grants and loans for postsecondary education; and
(ii)
present information on financial assistance for postsecondary education that is not provided under subchapter IV of this chapter and part
C of subchapter
I of chapter
34 of title
42 in a manner that is clearly distinct from information on student financial assistance under subchapter IV of this chapter and part
C of subchapter
I of chapter
34 of title
42.
(h)
Report
A grantee receiving a payment under this section shall prepare and submit an annual report to the Secretary on the activities and services carried out under this section, and on the implementation of such activities and services. The report shall include—
(1)
each activity or service that was provided to students and families over the course of the year;
(i)
Definitions
In this section:
(1)
Philanthropic organization
The term “philanthropic organization” means a non-profit organization—
(A)
that does not receive funds under subchapter IV of this chapter and part
C of subchapter
I of chapter
34 of title
42 or under the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6301 et seq.];
(C)
that has a demonstrated record of dispersing grant aid to underserved populations to ensure access to, and participation in, higher education;
(2)
Eligible consortium
The term “eligible consortium” means a partnership of 2 or more entities that have agreed to work together to carry out this section that—
(A)
includes—
(ii)
a State that demonstrates a commitment to ensuring the creation of a Statewide system to address the issues of early intervention and financial support for eligible students to enter and remain in college; and
(iii)
at the discretion of the philanthropic organization described in clause (i), additional partners, including other non-profit organizations, government entities (including local municipalities, school districts, cities, and counties), institutions of higher education, and other public or private programs that provide mentoring or outreach programs; and
(B)
conducts activities to assist students with entering and remaining in college, which may include—
(ii)
providing early notification to low-income students of their potential eligibility for Federal financial aid (which may include assisting students and families with filling out FAFSA forms), as well as other financial aid and other support available from the eligible consortium;
(iii)
encouraging increased student participation in higher education through mentoring or outreach programs; and
[1] So in original. Probably should be “organizations,”.