# A Primer on the Higher Education Act (HEA)

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/crs%3ARL34214

## Record

- **Collection:** Congressional research report
- **Document type:** CRS Report
- **Published:** March 25, 2008
- **Citation:** RL34214

## Text

A Primer on the Higher Education Act (HEA)
(name redacted)

March 25, 2008

Congressional Research Service
7-....
www.crs.gov
RL34214

CRS Report for Congress
Prepared for Members and Committees of Congress

A Primer on the Higher Education Act (HEA)

Summary
The Higher Education Act of 1965 (HEA) as amended, authorizes the federal government’s major
federal student aid programs (Title IV), as well as other programs which provide institutional aid
and support (Titles II, III and V). In addition, the HEA authorizes services and support to lessadvantaged students (select Title IV programs), and to students pursuing international education
and certain graduate and professional degrees (Titles VI and VII). The programs authorized by the
HEA are administered by the U.S. Department of Education (ED), and made available an
estimated 70% ($94 billion) of all federal, state, and institutional aid awarded to postsecondary
students in 2005-2006 (excluding tax benefits).
The principal objective of the HEA is to expand postsecondary education opportunity, particularly
for low-income individuals, and to increase affordability for moderate income families as well.
The heart of the legislation is its student aid programs authorized under Title IV, which provide
student aid in the form of grants, loans, and work-study assistance. There are seven titles of the
HEA that authorize numerous programs and provisions designed to provide assistance to
postsecondary students and institutions.
This report provides a brief overview of major provisions of the HEA. It is organized by title and
part of the act. This report will be updated following reauthorization of the HEA.

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A Primer on the Higher Education Act (HEA)

Contents
Introduction ................................................................................................................................1
Overview ....................................................................................................................................1
Title I: General Provisions...........................................................................................................2
Part A: Definitions ................................................................................................................2
Part B: General Provisions ....................................................................................................2
Part C: Cost of Higher Education ..........................................................................................3
Part D: Administrative Provisions for Delivery of Student Financial Assistance.....................3
Title II: Teacher Quality Enhancement ........................................................................................3
Part A: Teacher Quality Enhancement Grants for States and Partnerships...............................4
TEACH Grants ...............................................................................................................4
Part B: Preparing Tomorrow’s Teachers to Use Technology ...................................................4
Title III: Institutional Aid ............................................................................................................4
Part A: Strengthening Institutions ..........................................................................................5
American Indian Tribally Controlled Colleges and Universities.......................................5
Alaska Native and Native Hawaiian-Serving Institutions.................................................5
Part B: Strengthening Historically Black Colleges and Universities .......................................6
Historically Black Graduate and Professional Institutions................................................6
Part C: Endowment Challenge Grant .....................................................................................7
Part D: HBCU Capital Financing ..........................................................................................7
Part E: Minority Science and Engineering Improvement Program..........................................7
Part F: General Provisions.....................................................................................................8
Title IV: Student Assistance.........................................................................................................8
Part A: Grants to Students in Attendance at Institutions of Higher Education .........................8
Subpart 1: Federal Pell Grants.........................................................................................8
Subpart 2: Federal Early Outreach and Student Services Programs ..................................9
Subpart 3: Federal Supplemental Educational Opportunity Grants ................................. 11
Subpart 4: Leveraging Educational Assistance Partnership Program .............................. 11
Subpart 5: Special Programs for Students Whose Families Are Engaged in
Migrant and Seasonal Farmwork ................................................................................ 11
Subpart 6: Robert C. Byrd Honors Scholarship Program................................................ 11
Subpart 7: Child Care Access Means Parents in School ................................................. 12
Part B: Federal Family Education Loan ............................................................................... 12
Subsidized Stafford loans .............................................................................................. 12
Unsubsidized Stafford loans .......................................................................................... 12
PLUS loans................................................................................................................... 12
Consolidation loans....................................................................................................... 13
Part C: Federal Work-Study Programs ................................................................................. 13
Part D: William D. Ford Federal Direct Loan Program ........................................................ 13
Part E: Federal Perkins Loans.............................................................................................. 13
Part F: Need Analysis.......................................................................................................... 14
Part G: General Provisions Relating to Student Assistance Programs ................................... 14
Part H: Program Integrity .................................................................................................... 15
Subpart 1: State Role..................................................................................................... 15
Subpart 2: Accrediting Agency Recognition .................................................................. 15
Subpart 3: Eligibility and Certification Procedures ........................................................ 15

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Part I: Competitive Loan Auction Pilot Program.................................................................. 16
Part J: Strengthening Historically Black Colleges and Universities and Other
Minority-Serving Institutions ........................................................................................... 16
Title V: Developing Institutions................................................................................................. 16
Part A: Hispanic-Serving Institutions................................................................................... 16
Part B: General Provisions .................................................................................................. 17
Title VI: International Education Programs................................................................................ 17
Part A: International and Foreign Language Studies............................................................. 17
Part B: Business and International Education Programs ....................................................... 18
Part C: Institute for International Public Policy.................................................................... 18
Part D: General Provisions .................................................................................................. 18
Title VII: Graduate and Postsecondary Improvement Programs ................................................. 18
Part A: Graduate Education Programs ................................................................................. 18
Part B: Fund for the Improvement of Postsecondary Education ........................................... 18
Part C: Urban Community Service ...................................................................................... 19
Part D: Demonstration Projects to Ensure Students with Disabilities Receive a
Quality Higher Education................................................................................................. 19
Part E: College Access Challenge Program.......................................................................... 19

Contacts
Author Contact Information ...................................................................................................... 19
Key CRS Staff Members on Higher Education Issues ................................................................ 20

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Introduction
The Higher Education Act of 1965 (HEA) as amended, authorizes the federal government’s major
federal student aid programs (Title IV), as well as other programs which provide institutional aid
and support (Titles II, III and V). In addition, the HEA authorizes services and support to lessadvantaged students (select Title IV programs), and to students pursuing international education
and certain graduate and professional degrees (Titles VI and VII). The programs authorized by the
HEA are administered by the U.S. Department of Education (ED), and made available an
estimated 70% ($94 billion) of all federal, state, and institutional aid awarded to postsecondary
students in 2005-2006 (excluding tax benefits).1
The HEA was last comprehensively reauthorized by the Higher Education Amendments of 1998
(P.L. 105-244), which expired September 30, 2003. Since the initial expiration of the
authorization, there have been several temporary extensions,2 which authorize the programs and
activities of the HEA through March 31, 2008. Most recently, P.L. 110-198, the Higher Education
Extension Act of 2008, extends the HEA authorization to April 30, 2008.
This report3 provides a brief overview of major provisions of the HEA. It is organized by title and
part of the act. Other CRS reports provide much more detailed discussions and analyses of major
HEA provisions. 4 This report will be updated following reauthorization of the HEA.

Overview
The HEA was initially authorized in 1965 (P.L. 89-329). Since that time, comprehensive
amendment and reauthorization of the HEA has occurred seven additional times. 5 The principal
objective of the HEA is to expand postsecondary education opportunity, particularly for lowincome individuals, and to increase affordability for moderate income families as well. The heart
of the legislation is its student aid programs authorized under Title IV, which provide student aid
in the form of grants, loans, and work-study assistance.
There are seven titles of the HEA that authorize numerous programs and provisions designed to
provide assistance to postsecondary students and institutions. The seven titles of the HEA are:
•

Title I—General Provisions

1

The College Board, Trends in Student Aid 2006.
The original termination date for most of the provisions of the HEA was September 30, 2003, which was the original
date enacted by the Higher Education Amendments of 1998. This termination date was extended through FY2004 by
the General Education Provisions Act (GEPA). A series of subsequent measures—P.L. 108-366, P.L. 109-81, P.L. 109150, P.L. 109-212. P.L. 109-238, P.L. 109-292, P.L. 110-44, P.L. 110-51, P.L. 110-109, and P.L. 110-198—have
temporarily extended the HEA program and provision authority.
3
This report has been updated from one originally prepared by (name redacted) and (name redacted).
2

4

For a list of the key CRS products on Higher Education issues and programs, see:http://apps.crs.gov/cli/
cli.aspx?PRDS_CLI_ITEM_ID=479&from=3&fromId=5.
5
The Higher Education Amendments of 1968 (P.L. 90-575), Higher Education Amendments of 1972 (P.L. 92-318),
Higher Education Amendments of 1976 (P.L. 94-482), Higher Education Amendments of 1980 (P.L. 96-374), Higher
Education Amendments of 1986 (P.L. 99-498), Higher Education Amendments of 1992 (P.L. 102-325), and Higher
Education Amendments of 1998 (P.L. 105-244).

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•

Title II—Teacher Quality Enhancement

•

Title III—Institutional Aid

•

Title IV—Student Assistance

•

Title V—Developing Institutions

•

Title VI—International Education Programs; and

•

Title VII—Graduate and Postsecondary Improvement Programs

Each of these titles and the major programs under each are discussed in greater detail.

Title I: General Provisions
Title I of the HEA includes four parts, which establish the general provisions for the remainder of
the HEA. Many of the provisions affect institutions’ participation in the Title IV student aid
programs.

Part A: Definitions
Title I, Part A of the HEA includes two definitions of an institution of higher education (IHE).
The first definition, contained in Section 101, applies to institutional participation in non-Title IV
programs. The second definition, contained in Section 102, applies only to institutions
participating in Title IV programs. The Section 102 definition includes all institutions recognized
as IHEs under Section 101 and expands the definition of IHEs for Title IV purposes to include
for-profit (proprietary) institutions, postsecondary vocational institutions, and institutions outside
of the United States (i.e., foreign institutions). While Section 102 includes requirements specific
to proprietary institutions, postsecondary vocational institutions, and foreign institutions, it also
includes requirements that all Title IV eligible institutions must meet regarding the course of
study offered, student enrollment, and institutional management. Finally, Section 103 contains
other definitions relevant to the HEA.

Part B: General Provisions
Title I, Part B of the HEA contains several general provisions that address issues such as antidiscrimination, student speech, recognition of accrediting agencies, and drug and alcohol abuse
on college campuses. More specifically, IHEs receiving federal funds may not use the funds to
conduct a study or project in which the terms of the contract prohibit an individual from
performing the study or project based on the individual’s race, religion, sex, or national origin.
Part B also includes a Sense of Congress regarding the protection of student speech and
association rights. It also provides the Secretary of Education (Secretary) with waiver authority
related to program eligibility criteria and the circumstances of the outlying areas.6 Part B
authorizes the National Advisory Committee on Institutional Quality and Integrity (NACIQI),
6
The term outlying areas includes Guam, the Virgin Islands, American Samoa, the Commonwealth of the Northern
Marianas Islands, the freely associated states of the Republic of the Marshall Islands, the Federated States of
Micronesia, and the Republic of Palau.

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which advises the Secretary on decisions related to recognition of accrediting agencies.
Provisions are also included related to the disclosure of foreign gifts received by IHEs.
The “Collegiate Initiative to Reduce Binge Drinking and Illegal Alcohol Consumption” is also
included in Part B. The initiative, expressed in the form of a Sense of the Congress, is intended to
change the culture of alcohol consumption on collegiate campuses. Also included in Part B is a
requirement that an IHE must certify to ED that it has adopted and implemented a program to
prevent the use of illicit drugs and alcohol abuse by students. An institution failing to provide this
certification is not eligible to receive funds or any other form of financial assistance under any
federal program. Part B also authorizes Alcohol and Drug Abuse Prevention Grants. Finally, Part
B includes various provisions to meet long-term obligations related to previously funded
programs supporting the construction of college housing and academic facilities.

Part C: Cost of Higher Education
Title I, Part C includes provisions focused on collecting data on college costs and prices. It
requires the redesign of postsecondary education data systems to improve the usefulness and
timeliness of the data collected, standard definitions to be developed for various postsecondary
education data elements, a national study of expenditures at IHEs, and the development of a
higher education market basket that includes items related to the costs of higher education. Part C
also authorizes the National Postsecondary Student Aid Study (NPSAS).7

Part D: Administrative Provisions for Delivery of Student
Financial Assistance
Title I, Part D authorizes a performance-based organization (PBO) responsible for managing the
information processing and delivery systems for the student assistance programs authorized under
HEA Title IV. 8 The PBO is known as the Office of Federal Student Aid.

Title II: Teacher Quality Enhancement
Title II authorizes grants for improving teacher education programs, strengthening teacher
recruitment efforts, and training prospective teachers. This title also includes the reporting
requirements for states and IHEs regarding the quality of teacher education programs.

7

The National Postsecondary Student Aid Study (NPSAS) is a comprehensive nationwide study designed to determine
how students and their families pay for postsecondary education, and to describe some demographic and other
characteristics of those enrolled. The study is based on a nationally representative sample of students in postsecondary
education institutions, including undergraduate, graduate, and first-professional students.
8
For additional information about the PBO see CRS Report RL32098, The Office of Federal Student Aid: The Federal
Government's First Performance-Based Organization, by (name redacted).

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Part A: Teacher Quality Enhancement Grants for States
and Partnerships
Title II, Part A authorizes three competitive grants to improve the quality of K-12 teacher
education—State, Partnership, and Recruitment grants. The authorization of appropriations
provides that appropriated funds be divided as follows: 45% to State grants; 45% to Partnership
grants; and 10% to Recruitment grants. These grants provide funding to states or to partnerships
involving high-need school districts, higher education schools of education, and higher education
schools of arts and sciences. Competitively awarded state grants support reform of teacher
licensing, strengthening of accountability for high quality teacher preparation, and recruitment of
high quality teachers for high-need schools. Partnership grants, also awarded competitively, are
used to reform teacher preparation programs so they prepare high quality teachers, provide
sustained pre-service clinical experiences to prospective teachers, and enhance the opportunities
for professional development activities for current teachers. Further, states and partnerships are
eligible for separate competitive grants that support teacher recruitment activities. These grants
may be used for scholarships enabling students to complete teacher training programs, support
services needed to complete postsecondary education, and support services during the initial three
years of teaching.

TEACH Grants
Students preparing for a career in teaching and who agree to teach for at least four years in a highpoverty school may receive a TEACH Grant of $4,000 for each year of study (prospective
mathematics and science teachers may also receive Bonus TEACH Grants of $500 for each year
of study). Recipients who do not complete their service requirement would be required to repay
the amount of the TEACH Grant as a loan under HEA, Title IV, Part D.9

Part B: Preparing Tomorrow’s Teachers to Use Technology
The Preparing Tomorrow’s Teachers to Use Technology grant program has not been funded since
FY2003 and therefore will not be discussed.

Title III: Institutional Aid
Title III is intended to provide support for less-advantaged institutions serving students from lowincome or racial minority backgrounds. There are six parts authorizing programs for IHEs that
serve select groups of students, including historically black colleges and universities (HBCUs),
Alaska Native and Native Hawaiian-serving institutions, and tribally controlled colleges and
universities (TCCUs). Additionally, Title III, Part A authorizes funding for less-advantaged
institutions and those serving low-income students.

9

The TEACH Grants program was newly added to the HEA by the College Cost Reduction and Access Act of 2007
(P.L. 110-84).

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Part A: Strengthening Institutions
Title III, Part A authorizes development and planning grants for institutions that serve “needy”
students. The grants are intended to assist eligible institutions with improving their academic
quality, institutional management, and fiscal stability. In order for an institution to be eligible for
a Part A grant, at least 50% of the enrolled degree seeking students must be recipients of needbased financial assistance under Title IV of the HEA (Federal Perkins Loan, Federal Work Study,
Federal Pell Grant, or Federal Supplemental Educational Opportunity Grant), or the institution’s
Pell Grant recipients must exceed the median percentage for similar institutions receiving Pell
Grants. In addition to serving needy students, the institution’s average educational and general
expenditures must be low in comparison with other comparable institutions.10 Further, Section
312(b) requires that the institution also be legally authorized by its state to award baccalaureate
degrees or be a junior or community college (or be the College of the Marshall Islands, the
College of Micronesia/Federated States of Micronesia, and Palau Community College); and be
accredited or pre-accredited by a nationally recognized accreditation association or agency.
Development grant recipients are authorized to utilize funds for the acquisition of scientific or
laboratory equipment; construction or improvement of instructional facilities, including the
integration of computer technology into institutional facilities to create smart buildings; faculty
exchange and development, and faculty fellowships for attaining advanced degrees; and
establishment or improvement of an endowment fund (the grant recipient must match the federal
share of funds and up to 20% of a recipient’s grant funds can be utilized for an endowment fund),
among other things.

American Indian Tribally Controlled Colleges and Universities
Part A authorizes competitive grants for colleges and universities that are identified by Section 2
of the Tribally Controlled College or University Assistance Act of 1978 (25 U.S.C. § 1801) or are
included in the Equity in Educational Land Grant Status Act of 1994 (7 U.S.C. § 301). TCCUs
must satisfy the general eligibility requirements in Section 312(b) however, the grants are
intended to provide and expand opportunities for Native American students.
TCCUs are permitted to carry out similar activities to those authorized for Part A recipients.
However, there are some additional allowable activities specifically designed for Native
American students such as: academic instruction in disciplines in which the group is
underrepresented; establishment or enhancement of a teacher education program that is designed
to prepare individuals to teach in elementary and secondary schools; and community outreach
programs that encourage Native American students to pursue postsecondary education.

Alaska Native and Native Hawaiian-Serving Institutions
Part A authorizes grants and assistance to Alaska Native and Native Hawaiian-serving institutions
to enable them to improve and expand higher education opportunities afforded to these two
10

Average educational and general expenditures for 2004-2005 (most recent data available for comparison purposes)
were as follows: $9,320 for two-year public institutions, $20,782 for two-year private institutions, $23,553 for fouryear public institutions, and $37,105 for four-year private institutions. Data were retrieved from http://www.ed.gov/
legislation/FedRegister/announcements/2007-1/010807c.pdf.

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groups. In addition to the general eligibility requirements of being accredited/pre-accredited and
awarded baccalaureate degrees or being a community college, an institution is eligible for a grant
under this section if at least 20% of the undergraduate students are Alaska Native or 10% are
Native Hawaiian. In addition to the percentage requirement, these institutions must also satisfy
the eligibility requirements set forth in Section 312(b) of Title III.
Similar to TCCUs, Alaska Native and Native Hawaiian institutions are permitted to undertake
some of the activities that are authorized for Part A institutions, and they are authorized to
develop activities that specifically address the needs of Alaska Native and Native Hawaiian
students. The delineated activities are more limited than those identified for Part A institutions,
focusing on equipment acquisition, facilities’ improvement, faculty development, curriculum and
instruction, funds and administrative management, and student support services. Additionally,
Alaska Native and Native Hawaiian institutions cannot utilize any of the grant money for the
establishment of, or to increase, their institutional endowment.

Part B: Strengthening Historically Black Colleges and Universities
Title III, Part B is the only program in Title III that distributes funds according to a formula rather
than the competitive process.11 These formula grants are for eligible historically black colleges
and universities (HBCUs). To qualify as an HBCU the institution must have been established
prior to 1964 and have as its principal mission the education of African Americans. HBCUs are
not required to meet many of the eligibility requirements delineated for Part A institutions, except
they must meet the general requirements of being authorized by their state to provide
baccalaureate degrees or be a junior or community college and be either pre-accredited or
accredited by an authorized agency or association.
HBCUs are permitted to carry out activities similar to Part A institutions, however, there are some
authorized activities specifically for African American students such as academic instruction in
disciplines in which the group is underrepresented. Similar to TCCUs, HBCUs are permitted to
establish or enhance a teacher education program and community outreach programs, however,
the programs and activities do not have to specifically address African Americans.

Historically Black Graduate and Professional Institutions
Part B also authorizes grants to 18 graduate and professional institutions that significantly
contribute to the number of blacks in the legal, medical, dental, veterinary, math, engineering and
the physical and natural science fields. The federal government provides each institution $1
million in unmatched funds. Any funds in excess of the $1 million must be matched on a dollar
for dollar basis by the institution. For example, if an institution requests $1.5 million, it must
demonstrate that it is able to match $250,000 of the federal award with non-federal funds.12
11
The formula allocates funds to each institution as follows: 50% of the funds are based upon the grantees’ number of
Pell Grant recipients compared with the number of Pell Grant recipients at all Part B institutions. Twenty-five percent
of the funds are based upon the number of graduates at the respective institution as a proportion of all graduates from
Part B institutions. The remaining 25% is contingent upon the percentage of the institution’s graduates who enroll in a
graduate or professional degree program in a discipline in which blacks are underrepresented, compared with the
percentage at all Part B institutions. No institution can receive less than $500,000.
12
Annually, the first $26.6 million appropriated for Section 326 is reserved for 16 of these institutions (those in the
program prior to the 1998 amendments); the next $2 million is reserved for two institutions added by the 1998
(continued...)

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Under this section, institutions are authorized to provide activities similar to those of
undergraduate HBCUs, however, they are also able to provide scholarships and fellowships to
assist students with the enrollment and completion of postbaccalaureate and professional degrees
in the aforementioned disciplines. It is the sole discretion of the chancellor or president of each
institution to determine which professional or graduate school(s) or program(s) at the institution
receives the funds appropriated under this section.

Part C: Endowment Challenge Grant
Endowment Challenge grants have not been funded since FY1995 and therefore will not be
discussed.

Part D: HBCU Capital Financing
Title III, Part D authorizes the HBCU Capital Financing program which provides federal
insurance for bonds issued to support capital financing projects at HBCUs generally for the
repair, renovation, and, in exceptional circumstances, the construction or acquisition of facilities
used for instruction, research, or housing. A designated bonding authority is charged with raising
funds in the bond market; in turn, these funds are lent to HBCUs. Repayments on these loans are
used to make principal and interest payments on outstanding bonds. Borrowers deposit a portion
of their loans into an escrow account to cover principal and interest payments on outstanding
bonds in the event borrowers are delinquent in repaying their loans. Federal insurance is provided
if this escrow account cannot cover all principal and interest payments due on outstanding bonds.
The total outstanding principal and unpaid accrued interest on these loans cannot exceed $375
million (of this amount, $250 million is for private HBCUs and $125 million is for public
HBCUs).

Part E: Minority Science and Engineering Improvement Program
Title III, Part E authorizes the Minority Science and Engineering Improvement Program which
provides grants to predominantly minority institutions13 to improve science and engineering
education and to increase the number of minorities and women in science and technology.
Priority is given to institutions that have not previously received a grant under this section, prior
grantees successful in increasing the number of women and minorities in science and technology,
or projects that provide balance in one of the following ways: geographical, academic discipline
or project type.

(...continued)
amendments. Any annually appropriated funds in excess of $28.6 million are awarded among the 18 institutions based
on a formula developed by the Secretary of Education using certain specified factors. (For specific factors regarding the
formula, see HEA, Title III, Section 326(f)(3)).
13
An institution is deemed a minority higher education institution if its enrollment of one group of minorities or
combination of minorities exceeds 50% of its total enrollment.

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Part F: General Provisions
Title III, Part F contains the general provisions, including waiver authorities that apply to the
administration of these programs, and specifies the various authorization funding levels for the
Title III programs.

Title IV: Student Assistance
Title IV of the HEA contains eight parts which authorize a broad range of programs and
provisions. As the most notable title of the HEA, the programs authorized under Title IV are the
primary sources of federal aid to support postsecondary education.

Part A: Grants to Students in Attendance at Institutions of
Higher Education
Title IV, Part A authorizes numerous grant programs—funds that do not have to be repaid—for
students who attend eligible Title IV participating institutions. The largest of these programs is
the federal Pell Grant program.

Subpart 1: Federal Pell Grants
The Federal Pell Grant program (Pell Grants) is the single largest source of grant aid for
postsecondary education attendance funded by the federal government. The Pell Grant program
provides grants to low-income, undergraduate students. The program is often defined as a quasientitlement program because in any year, federal funding is available to ensure that all eligible
students attending eligible institutions receive Pell Grants. To receive a Pell Grant a student must
satisfy the general eligibility criteria for all federal student aid programs,14 and the individual
must be enrolled at an eligible IHE for the purpose of earning a degree or certificate. Generally,
the recipient must also be enrolled in an undergraduate program. 15 A recipients who attends less
than full-time is eligible for a Pell Grant. However, the grant amount is adjusted in accordance
with the recipient’s enrollment status.
Pell Grants are portable, that is, the grant aid follows students to the eligible postsecondary
education institutions in which they enroll. The size of the grant is primarily based on the
financial resources that students and their families are expected to contribute toward
postsecondary education expenses, and the appropriated maximum grant award.16 The Pell Grant
award is considered to be the foundation of the student aid package because all other federal aid
14
For information about the basic federal student aid eligibility criteria and the specific criteria for the Pell program,
see CRS Report RL31668, Federal Pell Grant Program of the Higher Education Act: Background and
Reauthorization, by (name redacted).
15
Students enrolled on at least a half-time basis in a postbaccalaureate program required by a state for K-12 teacher
certification or licensure are also eligible. Such a program cannot lead to a graduate degree, and the enrolling IHE must
not offer baccalaureate degrees in education.
16
Although the authorizing statute (HEA, Title IV, Section 401(b)(2)) sets the authorized maximum Pell award for
each year, this authorized maximum is overridden by the appropriations process, which sets the appropriated maximum
award. This latter amount is the one applied in awarding funds to recipients.

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(e.g., federal work study, student loans) is calculated after the amount of the Pell award has been
determined.

Academic Competitiveness and National Science and Mathematics Access to
Retain Talent Grants
Subpart 1 also authorizes the Academic Competitiveness grant (AC) and National Science and
Mathematics Access to Retain Talent grant (SMART) programs. Both programs provide grants to
Pell Grant-eligible students who are enrolled full time, at either a two-year or four-year degreegranting IHE. However, unlike Pell, to be eligible a student must be a U.S. citizen. AC grants are
limited to students who are in either their first year or second year of undergraduate education,
and have a completed a rigorous secondary program. SMART grants are for third and fourth year
undergraduate students, who major in certain technical fields or foreign languages.17

Subpart 2: Federal Early Outreach and Student Services Programs
Subpart 2 of Part A contains the authorization for the five TRIO programs18 and the Gaining Early
Awareness and Readiness for Undergraduate Programs (GEAR-UP). Under each of these
programs, discretionary grants are awarded to postsecondary institutions and other eligible
agencies to encourage and assist low-income, first-generation college students, individuals with
disabilities, and select minorities, who have demonstrated potential to complete their secondary
education and pursue postsecondary and postbaccalaureate education.

Federal TRIO Programs
Part A authorizes five separate discretionary grant programs—Talent Search, Upward Bound,
Student Support Services, Education Opportunity Centers, and McNair Postbaccalaureate
Achievement—collectively known as the TRIO programs. These programs are designed to assist
qualified individuals from disadvantaged backgrounds with preparing for and completing
secondary and postsecondary education. In addition to these programs, funding for TRIO also
authorizes staff development activities and expenses for information dissemination and program
evaluation.
Talent Search. The Talent Search program encourages youth with college potential to complete
high school and enter postsecondary education, and also encourages dropouts to reenter high
school. To accomplish this, Talent Search programs disseminate information about available
postsecondary student assistance, offer tutoring, and other support services. At least two-thirds of
each project’s participants must be low-income individual and potential first-generation college
students. Participants must have also completed a minimum of five years of elementary
education, and be between the ages of 11 and 27.

17
For additional information about the AC and SMART grant programs see CRS Report RL33457, Academic
Competitiveness Grants: Background, Description, and Selected Issues, by (name redacted).
18
Originally, in 1965, there were three programs—Upward Bound, Student Support Services, and Talent Search—that
provided a wide range of student support services, thus the name TRIO. Subsequent legislation authorized new
programs with a similar purpose, however the name TRIO remains.

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Upward Bound. Upward Bound (UB) provides pre-college students and veterans with the skills
and motivation needed to succeed in postsecondary education. UB programs offer services such
as: counseling and workshops; tutoring; and exposure to cultural events. Most UB projects also
provide six-week summer programs on college campuses. Participants may receive monthly
stipends of up to $60 during the summer (work-study students may receive monthly stipends of
$300 in the summer) and $40 during the rest of the year. ED also funds Upward Bound Math and
Science Centers providing intensive instruction in math and science. At least two-thirds of each
project’s participants must be low-income, first-generation college goers; the remainder must be
either low-income or a prospective first-generation college goer. Participants also must have
completed at least eight years of elementary education, and be 13 to 19 years of age.
Student Support Services. Student Support Services (SSS) projects are intended to improve
retention and graduation rates, and improve the transfer rates of students from two-year to fouryear colleges, by offering a broad range of support services such as academic counseling and
guidance. SSS projects may provide such services as: instruction in reading, writing, study skills,
math, and other subjects; academic counseling; exposure to cultural events; assistance in the
graduate admission and financial aid processes; assistance in transferring from two-year to fouryear colleges; and mentoring. At least two-thirds of SSS participants must be disabled or lowincome and first-generation. The remaining participants must be either low-income, firstgeneration, or disabled. Not less than one-third of the disabled participants must also be lowincome.
McNair Postbaccalaureate Achievement Program. The McNair Postbaccalaureate Achievement
Program prepares low-income and first-generation undergraduate students for doctoral study.
Among the services that McNair programs may provide are: research opportunities, seminars, and
other activities preparing students for doctoral study; summer internships; academic counseling;
assistance in securing graduate admission and financial aid; mentoring; and exposure to cultural
events and academic programs. Research participants may receive an annual award providing a
stipend of up to $2,800; the award may cover the costs of summer tuition, room and board, and
transportation as well. At least two-thirds of the participants must be low-income and firstgeneration undergraduates; the remainder must be from a group underrepresented in graduate
education.
Education Opportunity Centers. The Education Opportunity Centers (EOC) program is intended
to provide information to prospective postsecondary students regarding available financial aid
and academic assistance, and help them apply for college admission and financial aid. EOCs may
provide information to communities about postsecondary education and training opportunities,
assistance in completing admission and financial aid applications, assistance preparing for college
entrance exams, and guidance on reentering secondary school, or entering a GED program or
other program for high school dropouts. At least two-thirds of the participants must be lowincome and would be first-generation college goers. The participants must also be at least 19
years old.

Gaining Early Awareness and Readiness for Undergraduate Programs
Part A also authorizes the Gaining Early Awareness and Readiness for Undergraduate Programs
(GEAR UP), which provides grants to states and partnerships to support early college preparation
and awareness activities at the state and local levels, to ensure low-income elementary and
secondary school students are prepared for and pursue postsecondary education. GEAR UP
grantees serve an entire cohort of students beginning no later than the seventh grade and follow

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the cohort through high school. GEAR UP has two major components: (1) eligible projects
provide early intervention services such as mentoring, career counseling, and college visits; and
(2) college scholarships to eligible participating students.

Subpart 3: Federal Supplemental Educational Opportunity Grants
The Federal Supplemental Educational Opportunity Grants (FSEOG) is one of the three programs
collectively referred to as the campus-based programs—Federal Work Study (FWS) and Perkins
Loans are the other two—because their funds are allocated to postsecondary institutions to
administer and award to students. In addition to institutions administering the funds for these
programs the participating institution must match a portion of their allocation under each
program. Institutions are required to award FSEOGs to students with exceptional financial need,
with priority going to students receiving Pell Grants.
The federal share of funds for FSEOG is allocated to IHEs according to a statutorily prescribed
formula that is largely driven by the institution’s initial year of participation in the program.
Institutions first are allocated funds in proportion to the amount they received in previous years,
with priority going to institutions that participated in the program in FY1999 or earlier. Funds are
then allocated to those institutions that began participating after FY1999, but which are not firstor second-time participants. Following this, funds are allocated to institutions that are first- or
second-year participants.19

Subpart 4: Leveraging Educational Assistance Partnership Program
The Leveraging Educational Assistance Partnership (LEAP) program provides matching federal
funds to states to encourage and assist them in providing eligible postsecondary students with
need-based grants and work-study aid.

Subpart 5: Special Programs for Students Whose Families Are Engaged in
Migrant and Seasonal Farmwork
There are two programs authorized under Subpart 5: the High School Equivalency Program
(HEP) and the College Assistance Migrant Program (CAMP). HEP helps persons 16 years of age
or older who are not currently enrolled in school to obtain the equivalent of a secondary school
diploma and subsequently to gain employment or to begin postsecondary education or training.
CAMP assists students enrolled in the first undergraduate year at an institution of higher
education to complete their programs of study for that year.

Subpart 6: Robert C. Byrd Honors Scholarship Program
The Robert C. Byrd Honors Scholarship program is a federally funded, state-administered
scholarship program, designed to recognize exceptionally able high school seniors who show
promise for continued excellence in postsecondary education. ED awards funds to state education
agencies, which make scholarship awards to eligible applicants.
19

For additional information regarding the FSEOG formula see CRS Report RL31618, Campus-Based Student
Financial Aid Programs Under the Higher Education Act, by (name redacted).

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Subpart 7: Child Care Access Means Parents in School
The Child Care Access Means Parents in School program is designed to support the participation
of low-income parents in postsecondary education through campus-based child care services. The
program awards competitive grants to IHEs to establish or support a campus-based child care
program.

Part B: Federal Family Education Loan
The Federal Family Education Loan program (FFEL) is authorized under Title IV, Part B. Under
the FFEL program, loan capital is provided by private lenders, and the federal government
guarantees lenders against loss through borrower default, death, permanent disability, or in
limited instances, bankruptcy. FFEL program loans are originated by private lenders. Private
lenders also are responsible for billing borrowers and collecting loan payments. State and
nonprofit guaranty agencies receive federal funds to play the lead role in administering the federal
loan insurance and for providing other FFEL program administrative services.
FFEL loans are an entitlement, meaning the funding for the program is mandatory and therefore
not subject to the annual appropriations process. The following types of federally sponsored
student loans are available through the FFEL program to support postsecondary student expenses:
Stafford loans, subsidized or unsubsidized; PLUS loans; and Consolidation loans. Loan Limits,
repayment plans, deferment and forbearance benefits, interest rates and other terms and
conditions are determined by statutory provisions.20

Subsidized Stafford loans
Subsidized Stafford loans are available to undergraduate and graduate students. The federal
government “subsidizes” these loans by paying the interest on the loans while the student is
enrolled in school on at least a half-time basis and during grace periods and deferment periods. To
qualify for a subsidized Stafford loan a student must have financial need.

Unsubsidized Stafford loans
Unsubsidized Stafford loans are available to undergraduate and graduate students. The federal
government does not pay the interest on these loans while the student is in school or during
deferment and grace periods. Students can qualify for unsubsidized Stafford loans regardless of
financial need.

PLUS loans
PLUS loans are available to parents of dependent undergraduate students and to graduate
students. The federal government does not pay the interest on PLUS loans while students are in

20
For additional information regarding loan terms and conditions see CRS Report RL33673, Federal Family Education
Loan Program and William D. Ford Direct Loan Program Student Loans: Terms and Conditions for Borrowers, by
(name redacted).

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school or during deferment or grace periods. Borrowers can qualify for PLUS loans regardless of
financial need.

Consolidation loans
Consolidation loans allow borrowers with existing federal student loans to combine their
obligations and possibly extend their repayment period.

Part C: Federal Work-Study Programs
Title IV, Part C authorizes the Federal Work-Study Programs (FWS), one of the three campusbased programs previously described. The purpose of FWS is to provide part-time employment to
undergraduate, graduate, and professional students in need of earnings to pursue their course of
study; and to encourage student participation in community service activities. Students receive
their awards as compensation for the hours they have worked Unlike the FSEOG where aid is
required to be awarded first to students with exceptional financial need, FWS aid may be
provided to any student demonstrating financial need. Awards typically are based on factors such
as each student’s financial need, the availability of FWS funds, and whether a student requests
FWS employment and is willing to work.

Part D: William D. Ford Federal Direct Loan Program
The William D. Ford Federal Direct Student Loan program (DL), authorized under Title IV, Part
D, was intended to streamline the student loan delivery system and achieve cost savings. The DL
program provides the same set of loans as the FFEL program, but uses a different administrative
structure and draws on a different source of capital. Under the DL program, the federal
government essentially serves as the banker—the federal government provides the loans to
students and their families, using federal capital (i.e., funds from the U.S. Treasury), and owns the
loans. Under the DL program, schools may serve as direct loan originators or the loans may be
originated by contractors working for ED. Similar to FFEL, DL loans include subsidized,
unsubsidized, PLUS loans and consolidation loans.

Part E: Federal Perkins Loans
The final campus-based program, Federal Perkins loans, authorizes the allocation of federal funds
to IHEs to assist them in capitalizing revolving loan funds for the purpose of making low-interest
loans to students with exceptional financial need. Institutions capitalize revolving loan funds with
a combination of federal and institutional capital contributions. IHEs apply to ED for funds which
are allocated according to procedures similar to those previously discussed for the FSEOG
program.
Institutions are required to establish written selection procedures for awarding Perkins Loans to
eligible students. Loans must be made reasonably available to all eligible students, to the extent
that funds are available, and priority must be given to students with exceptional financial need.
Undergraduate students and graduate and professional students are eligible to borrow under the
Perkins Loan program. Interest on Perkins Loans is fixed at a rate of 5% per year; however, no
interest accrues prior to a student beginning repayment.

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Part F: Need Analysis
Title IV, Part F authorizes the federal need analysis system, which is used to allocate billions of
dollars of federal student aid under Title IV of the HEA, and by states and many IHEs as well.
The need analysis process entails gathering financial data, which are provided by the student via
the free application for federal student aid (FAFSA); calculating the expected family contribution
(EFC); and packaging of the applicant’s financial aid award by the postsecondary institution’s
financial aid administrator.
The EFC is the amount that the need analysis system determines a family has available to
contribute toward postsecondary education expenses. In calculating the EFC, consideration is
given to available income (a combination of taxable and untaxed income and benefits), and for
some families, available assets. In addition, living expenses, retirement needs, and federal and
state tax liability are considered. The income contribution is calculated by determining the total
income of a student and his or her family (where applicable), and determining available income
by subtracting a series of allowances from total income; a percentage of that available income is
considered as an income contribution toward postsecondary education costs. A contribution from
assets is similarly calculated. The combination of the available income and asset contribution
divided by the number of individuals in the family enrolled in college constitutes the EFC.
The calculation of the EFC varies depending upon the applicant’s dependency status. There are
three separate dependency classifications for individual applicants: dependent student,
independent student with dependents, and independent student without dependents.21 These
distinctions are important because parental financial information is not considered if the applicant
meets the statutory definition of an independent student.

Part G: General Provisions Relating to Student
Assistance Programs
Title IV, Part G establishes institutional requirements for Title IV participation and related
provisions. It includes definitions of terms such as “academic year” and “eligible program” that
affect an institution’s participation in the federal student aid programs. Part G establishes a master
calendar related to federal student aid programs that the Secretary is required to follow, and
includes requirements related to forms and regulations, including the FAFSA. This part also
contains student eligibility requirements to receive federal student aid, including the types of
institutions and programs in which students must enroll, ability-to-benefit requirements for
students who are not high school graduates, and penalties related to drug-related offenses.
Provisions are also included that prescribe how Title IV funds will be returned to the federal
government by IHEs and students in the event that a student withdraws from the institution.
Part G also contains numerous requirements regarding institutional information dissemination
activities for prospective and enrolled students. For example, IHEs are required to provide
21

According to the Higher Education Act, Title IV, Section 480(d), an applicant must meet one of the following
conditions to be classified as independent: 24 years of age or older, married, enrolled in a graduate or professional
program, have a dependent other than a spouse, orphan or ward of the court (or was up until age 18), or a military
veteran or active duty service member. Students who do not meet any of the aforementioned conditions are considered
to be dependent for the purposes of Title IV student aid.

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information related to available student financial assistance programs, exit counseling to
borrowers, and data on athletically related student aid, campus security policies, and campus
crime statistics.
Additionally, Part G authorizes combined payment plans for borrowers, the National Student
Loan Data System, loan simplification, the College Access Initiative, the Distance Education
Demonstration Program, regulatory relief and improvement (e.g., Quality Assurance Program and
streamlining experiments), wage garnishment requirements, administrative expenses, criminal
penalties, administrative subpoenas, the Advisory Committee on Student Financial Assistance,
and regional meetings and negotiated rulemaking.
Finally, Part G includes the Program Participation Agreement (PPA), which all institutions must
sign to participate in Title IV programs, and authorizes the Secretary to issue regulations
regarding audits, financial responsibility, and penalties for IHEs failing to meet requirements.

Part H: Program Integrity
Title IV, Part H includes three subparts that specify the roles and responsibilities for the three
aspects of the program integrity triad: state authorization, accreditation by an accrediting
organization recognized by the Secretary, and eligibility and certification by ED.

Subpart 1: State Role
Subpart 1 requires states to provide the Secretary with various information about the licensing
and authorization process used by the state, if the state has revoked the authority of an IHE to
operate, and if the state has evidence that an IHE has committed fraud related to Title IV
programs or substantially violated a Title IV provision.

Subpart 2: Accrediting Agency Recognition
Subpart 2 delineates the criteria the Secretary utilizes to recognize an accrediting agency as a
reliable authority for determining the quality of education or training offered by an IHE for the
purposes of participating in the federal student aid programs (Title IV) and other federal purposes.
These criteria include, for example, requirements related to the structure of the accrediting
agency, the agency’s operating procedures (e.g., institutional review process), and due process
requirements.

Subpart 3: Eligibility and Certification Procedures
Subpart 3 includes the eligibility and certification procedures administered by ED. In this
capacity, ED is responsible for verifying the institution’s legal authority to operate in a state and
its accreditation status, and for evaluating its administrative capability and financial
responsibility.

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Part I: Competitive Loan Auction Pilot Program
Title IV, Part I authorizes the Secretary of Education to implement a student loan auction program
for parent PLUS loans in the FFEL program to begin on July 1, 2009.22 Prior to implementation
the Secretary would hold an auction in each state where lenders would bid on the minimum
amount of subsidization they would accept to have exclusive rights to originate parent PLUS
loans in that state.

Part J: Strengthening Historically Black Colleges and
Universities and Other Minority-Serving Institutions
Title IV, Part J allocates funding for Hispanic-serving institutions, historically black colleges and
universities, tribal colleges and universities, and Alaska Native and Native Hawaiian-serving
institutions. It also authorizes new programs and allocates funding for Predominantly Black
Institutions, Asian American and Pacific Islander-serving institutions and Native American NonTribal-serving institutions.23

Title V: Developing Institutions
In 1998 Congress authorized the inclusion of grants to Hispanic-Serving Institutions (HSIs) under
Title V of the HEA. Prior to 1998, the HSI program was a section of Title III, Part A. Title V of
the HEA is solely dedicated to authorizing grants for HSIs.

Part A: Hispanic-Serving Institutions
Title V, Part A authorizes grants to institutions that provide and increase the number of
educational opportunities available to Hispanic and other low-income students. To qualify as an
Hispanic-serving institution (HSI) for the purposes of Title V, an institution must have a minimum
25% full-time, Hispanic undergraduate student enrollment. In addition, HSIs must also satisfy
requirements similar to those for Title III, Part A institutions, including the following: they must
serve needy students and have low general and education expenditures in comparison with other
similar institutions.
HSIs are authorized to use their funds for specific activities that parallel those delineated under
Title III Part A. Additionally, HSIs can use their funds to establish or enhance teacher education
programs; establish community outreach programs to provide elementary and secondary school
students with the interest and skills to pursue postsecondary education; and expand courses and
institutional resources in order to increase the number of Hispanic and other underrepresented
graduate or professional students that the institution can serve.

22

The Competitive Loan Auction program was newly added to the HEA by the College Cost Reduction and Access
Act of 2007 (P.L. 110-84).
23
The Strengthening Historically Black Colleges and Universities and Other Minority-Serving Institutions was newly
added to the HEA by the College Cost Reduction Act of 2007 (P.L. 110-84).

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Part B: General Provisions
Title V, Part B contains the general provisions, including waiver authorities that apply to the
administration of these programs, and specifies the various authorization funding levels for the
Title V programs.

Title VI: International Education Programs
Title VI contains four parts that authorize an array of international and foreign language studies
programs and business and international education programs to strengthen domestic IHEs in
foreign languages and in area and international studies.

Part A: International and Foreign Language Studies
Title VI, Part A authorizes a series of programs, centers, and fellowships related to international
and foreign language studies.
•

The National Language and Area Centers and Programs provide grants to IHEs
to establish, strengthen, and operate (1) comprehensive foreign language and area
or international studies centers and programs (National Resource Centers), (2) a
network of undergraduate foreign language and area or international studies
centers and programs (Undergraduate International Studies and Foreign
Language Program).

•

The Graduate Fellowships for Foreign Language and Area or International
Studies program provides grants to IHEs to enable them to pay stipends to
individuals participating in advanced training in the aforementioned centers and
programs.

•

Language Resource Centers, authorized by Part A, provides grants to IHEs to
establish, strengthen, and operate national language resource and training centers
and award grants to IHEs to establish, strengthen, and implement programs to
improve undergraduate instruction in international studies and foreign languages.

•

International Research and Studies Projects are grants or contracts to conduct
research and studies focused on instruction and national needs in foreign
languages and area or international studies.

•

Technological Innovation and Cooperation for Foreign Information Access
program authorizes grants to develop innovate techniques or programs using new
electronic technologies to collect, organize, preserve, and disseminate
information on world regions and countries that address U.S. teaching and
research needs in foreign languages and international studies.

•

Finally, the American Overseas Research Centers program makes grants to
consortia of IHEs to enable the centers to promote postgraduate research,
exchanges, and area studies.

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Part B: Business and International Education Programs
Title VI, Part B authorizes grants to IHEs to pay the federal share of the cost of planning,
establishing, and operating centers for international business education which will be national
resources for the teaching of international business, provide instruction in critical foreign
languages and international fields, and provide research and training in the international aspects
of trade, commerce, and related areas (Centers for International Business Education). It also
authorizes grants to IHEs to promote linkages between IHEs and the American business
community engaged in international economic activity (Business and International Education
Projects).

Part C: Institute for International Public Policy
Title VI, Part C authorizes the Institute for International Public Policy program. This program
supports activities to increase the representation of African Americans and other underrepresented
minorities in international service.

Part D: General Provisions
Title VI, Part D contains definitions relevant to Title VI.

Title VII: Graduate and Postsecondary Improvement
Programs
Title VII authorizes several graduate education programs, as well as a grant program designed to
support innovation and improvement in postsecondary education. It also authorizes grants for
urban community service and demonstration programs to enable IHEs to better serve disabled
students.

Part A: Graduate Education Programs
Title VII, Part A authorizes several graduate education programs. The Jacob K. Javits Fellowships
program provides financial support to students of “superior ability” in the arts, humanities, and
social sciences. The Graduate Assistance in Areas of National Need (GAAN) provides
competitive grants to postbaccalaureate students in areas of national need. The Thurgood
Marshall Legal Educational Opportunity program authorizes a grant or contract to the Council on
Legal Education Opportunity for services and activities to help low-income, minority, or
disadvantaged college students prepare for, gain access to, and complete law school. Part A also
includes general provisions that affect the administration and evaluation of these programs and
the provision of continuation awards.

Part B: Fund for the Improvement of Postsecondary Education
Title VII, Part B authorizes the Fund for the Improvement of Postsecondary Education (FIPSE)
awards to IHEs and other nonprofit entities for projects that model innovative reform and

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improvement of postsecondary education. Also included are provisions establishing the National
Board of the Fund for the Improvement of Postsecondary Education, which provides guidance on
priorities for the improvement of postsecondary education. Part B also includes administrative
provisions and the authority to make grants for special projects in areas of national need.

Part C: Urban Community Service
The Urban Community Service program has not been funded since FY1999 and therefore will not
be discussed.

Part D: Demonstration Projects to Ensure Students with
Disabilities Receive a Quality Higher Education
Title VII, Part D authorizes demonstration projects that support technical assistance and
professional development for faculty and administrators at IHEs to enable them to better serve
postsecondary education students with disabilities.

Part E: College Access Challenge Program
Title VII, Part E authorizes the College Access Challenge Grant Program, which makes funds
available to states and philanthropic organizations to provide students and families with
information about the benefits of college, outreach activities, career preparation and need-based
grant aid among other things.24

Author Contact Information
(name redacted)

24

The College Access Challenge Grant Program was newly added to the HEA by the College Cost Reduction and
Access Act of 2007 (P.L. 110-84).

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Key CRS Staff Members on Higher Education Issues
Contact

Major Areas of Responsibility

David Smole

Student loans, campus-based student aid programs, and postsecondary
education finance

7-----

Blake Naughton

Pell grants, need analysis, college cost and price, institutional eligibility,
minority-serving institutions, community colleges, LEAP, graduate
education programs, FIPSE, and general higher education issues

7-----

Jeff Kuenzi

TRIO, GEAR-UP, international education, and teacher quality

7-----

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/crs%3ARL34214. Public record. Not legal advice.
