Page:United States Statutes at Large Volume 100 Part 2.djvu/340

 100 STAT. 1442

PUBLIC LAW 99-498—OCT. 17, 1986

appropriated pursuant to section 461(b) for the fiscal year; exceeds "(B) the amount required to be allocated to that institution under subsection (a), except that an eligible institution which has a default rate in excess of the applicable maximum default rate under subsection (g) may not receive an allocation under this paragraph. "(3) For any eligible institution, the eligible amount of that institution is equal to— "(A) the amount of the institution's self-help need, as determined under subsection (d); minus "(B) the institution's anticipated collections; multiplied by "(C) the institution's default penalty, as determined under subsection (f); except that, if the institution has a default rate in excess of the applicable maximum default rate under subsection (g), the eligible amount of that institution is zero. "(d) DETERMINATION OF INSTITUTION'S SELF-HELP NEED.—(1)

The

amount of an institution's self-help need is equal to the sum of the self-help need of the institution's eligible undergraduate students and the self-help need of the institution's eligible graduate and professional students. "(2) To determine the self-help need of an institution's eligible undergraduate students, the Secretary shall— "(A) establish various income categories for dependent and independent undergraduate students; "(B) establish an expected family contribution for each income category of dependent and independent undergraduate students, determined on the basis of the average expected family contribution (computed in accordance with part F of this title) of a representative sample within each income category for the second preceding fiscal year; "(C) compute 25 percent of the average cost of attendance for all undergraduate students; "(D) multiply the number of eligible dependent students in each income category by the lesser of— "(i) 25 percent of the average cost of attendance for all undergraduate students determined under subparagraph (C); or "(ii) the average cost of attendance for all undergraduate •;; students minus the expected family contribution determined under subparagraph (B) for that income category, T except that the amount computed by such subtraction shall not be less than zero; "(E) add the amounts determined under subparagraph (D) for each income category of dependent students; "(F) multiply the number of eligible independent students in each income category by the lesser of— "(i) 25 percent of the average cost of attendance for all undergraduate students determined under subparagraph (C); or tj^ii "(ii) the average cost of attendance for all undergraduate students minus the expected family contribution determined under subparagraph (B) for that income category, except that the amount computed by such subtraction for any income category shall not be less than zero;

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