Laws: Cases and Codes : U.S. Code : Title 20 : Section 1096


   
U.S. Code as of: 01/19/04
Section 1096. Administrative expenses

    (a) Amount of payments
      From the sums appropriated for any fiscal year for the purpose of
    the program authorized under subpart 1 of part A of this
    subchapter, the Secretary shall reserve such sums as may be
    necessary to pay to each institution with which he has an agreement
    under section 1094 of this title, an amount equal to $5 for each
    student at that institution who receives assistance under subpart 1
    of part A of this subchapter. In addition, an institution which has
    entered into an agreement with the Secretary under subpart 3 of
    part A of this subchapter or part C of subchapter I of chapter 34
    of title 42, or under part D of this subchapter shall be entitled
    for each fiscal year which such institution disburses funds to
    eligible students under any such part to a payment for the purpose
    set forth in subsection (b) of this section. The payment for a
    fiscal year shall be payable from each such allotment by payment in
    accordance with regulations of the Secretary and shall be equal to
    5 percent of the institution's first $2,750,000 of expenditures
    plus 4 percent of the institution's expenditures greater than
    $2,750,000 and less than $5,500,000, plus 3 percent of the
    institution's expenditures in excess of $5,500,000 during the
    fiscal year from the sum of its grants to students under subpart 3
    of part A of this subchapter, its expenditures during such fiscal
    year under part C of subchapter I of chapter 34 of title 42 for
    compensation of students, and the principal amount of loans made
    during such fiscal year from its student loan fund established
    under part D of this subchapter, excluding the principal amount of
    any such loans which the institution has agreed to assign under
    section 1087cc(a)(6)(B) (!1) of this title. In addition, the
    Secretary shall provide for payment to each institution of higher
    education an amount equal to 100 percent of the costs incurred by
    the institution in implementing and operating the immigration
    status verification system under section 1091(h) (!1) of this
    title.

    (b) Purpose of payments
      (1) The sums paid to institutions under this part are for the
    sole purpose of offsetting the administrative costs of the programs
    described in subsection (a) of this section.
      (2) If the institution enrolls a significant number of students
    who are (A) attending the institution less than full time, or (B)
    independent students, the institution shall use a reasonable
    proportion of the funds available under this section for financial
    aid services during times and in places that will most effectively
    accommodate the needs of such students.



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