Page:United States Statutes at Large Volume 106 Part 1.djvu/538

 106 STAT. 506 PUBLIC LAW 102-325—JULY 23, 1992 study abroad when determining student eligibility. The amount of grant to be awarded in such cases may exceed the maximum amount of $4,000 by as much as $400 if reasonable study abroad costs exceed the cost of attendance at the home institution.". 20 USC i070b-2. (d) FEDERAL SHARE. —Section 413C(a)(2) of the Act is amended to read as follows: "(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 subp^; and". (e) USE OF FUNDS TO NONTRADITIONAL STUDENTS. —Section 413C(d) of the Act (20 U.S.C. 1070b-2(d)) is amended— (1) by inserting *Svho are independent students or" after "demonstrated by students"; and (2) by inserting before the period at the end thereof the following: ", 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". (f) TRANSFER OF FUNDS.—Section 413C(e) of the Act is amended by striking ", and may transfer such ftmds in accordance with the provisions of section 488". (g) ALLOCATION OF FUNDS.—Section 413D(a) of the Act (20 U.S.C. 1070b-3(a)) is amended by adding at the end the following new paragraph: "(4)(A) Notwithstanding any other provision of this section, the Secretary may allocate an amount equal to not more than 10 percent of the amount by which the amount appropriated in any fiscal year to carry out this part exceeds $700,000,000 among eligible institutions described in subparagraph (B). "(B) In order to receive an allocation pursuant to subparagraph (A) an institution shall be an eligible institution from which 50 percent or more of the Pell Grant recipients attending such eligible institution graduate from or transfer to a 4-year institution of higher education.". (h) CONSEQUENCES OF FAILURE TO AWARD.— Section 413D(e) of the Act (20 U.S.C. 1070b-3(e)) is amended— (1) by inserting "(1)" after the subsection heading; and (2) by adding at the end the following new paragraph: "(2) If xinder paragraph (1) of this subsection an institution returns more than 10 percent of its allocation, the institution's allocation for the next fiscal year shall be reduced by the amount returned. The Secretary may waive this paragraph for a specific institution if the Secretary finds that enforcing this paragraph would be contrary to the interest of the program.". SEC. 404. STATE STUDENT INCENTIVE GRANTS. (a) PURPOSES OF SUBPART. — Section 415A of the Act (20 U.S.C. 1070c) is amended to read as follows: "(a) PURPOSE OF SUBPART. —It is the purpose of this subpart to make incentive grants available to States to assist States in providing grants to— "(1) eligible students attending institutions of higher education or participating in programs of study abroad that are

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