20 U.S.C. § 1092e — College access initiative

Page 695 TITLE 20—EDUCATION § 1092e Trade Commission, shall jointly submit to Congress each year a report on fraud in the of- fering of financial assistance for purposes of fi- nancing an education at an institution of higher education. Each report shall contain an assessment of the nature and quantity of inci- dents of such fraud during the one-year period ending on the date of such report. (2) Initial report The first report under paragraph (1) shall be submitted not later than 18 months after No- vember 1, 2000. (b) National awareness activities The Secretary of Education shall, in conjunc- tion with the Federal Trade Commission, main- tain a scholarship fraud awareness site on the Internet web site of the Department of Edu- cation. The scholarship fraud awareness site may include the following: (1) Appropriate materials from the Project Scholarscam awareness campaign of the Com- mission, including examples of common fraud- ulent schemes. (2) A list of companies and individuals who have been convicted of scholarship fraud in Federal or State court. (3) An Internet-based message board to pro- vide a forum for public complaints and experi- ences with scholarship fraud. (4) An electronic comment form for individ- uals who have experienced scholarship fraud or have questions about scholarship fraud, with appropriate mechanisms for the transfer of comments received through such forms to the Department and the Commission. (5) Internet links to other sources of infor- mation on scholarship fraud, including Inter- net web sites of appropriate nongovernmental organizations, colleges and universities, and government agencies. (6) An Internet link to the Better Business Bureau in order to assist individuals in assess- ing the business practices of other persons and entities. (7) Information on means of communicating with the Federal Student Aid Information Center, including telephone and Internet con- tact information. (Pub. L. 106–420, § 5, Nov. 1, 2000, 114 Stat. 1868.) Editorial Notes CODIFICATION Section was enacted as part of the College Scholar- ship Fraud Prevention Act of 2000, and not as part of title IV of the Higher Education Act of 1965 which com- prises this subchapter. Statutory Notes and Related Subsidiaries FINDINGS Pub. L. 106–420, § 2, Nov. 1, 2000, 114 Stat. 1867, pro- vided that: ‘‘Congress makes the following findings: ‘‘(1) A substantial amount of fraud occurs in the of- fering of college education financial assistance serv- ices to consumers. ‘‘(2) Such fraud includes the following: ‘‘(A) Misrepresentations regarding the provision of sources from which consumers may obtain finan- cial assistance (including scholarships, grants, loans, tuition, awards, and other assistance) for purposes of financing a college education. ‘‘(B) Misrepresentations regarding the provision of portfolios of such assistance tailored to the needs of specific consumers. ‘‘(C) Misrepresentations regarding the pre-selec- tion of students as eligible to receive such assist- ance. ‘‘(D) Misrepresentations that such assistance will be provided to consumers who purchase specified services from specified entities. ‘‘(E) Misrepresentations regarding the business relationships between particular entities and enti- ties that award or may award such assistance. ‘‘(F) Misrepresentations regarding refunds of processing fees if consumers are not provided speci- fied amounts of such assistance, and other mis- representations regarding refunds. ‘‘(3) In 1996, the Federal Trade Commission launched ‘Project Scholarscam’, a joint law enforce- ment and consumer education campaign directed at fraudulent purveyors of so-called ‘scholarship serv- ices’. ‘‘(4) Despite the efforts of the Federal Trade Com- mission, colleges and universities, and nongovern- mental organizations, the continued lack of aware- ness about scholarship fraud permits a significant amount of fraudulent activity to occur.’’ § 1092e. College access initiative (a) State-by-State information The Secretary shall direct each guaranty agency with which the Secretary has an agree- ment under section 1078(c) of this title to pro- vide to the Secretary the information necessary for the development of Internet web links and access for students and families to a comprehen- sive listing of the postsecondary education op- portunities, programs, publications, Internet web sites, and other services available in the States for which such agency serves as the des- ignated guarantor. (b) Guaranty agency activities (1) Plan and activity required Each guaranty agency with which the Sec- retary has an agreement under section 1078(c) of this title shall develop a plan, and under- take the activity necessary, to gather the in- formation required under subsection (a) and to make such information available to the public and to the Secretary in a form and manner as prescribed by the Secretary. (2) Activities Each guaranty agency shall undertake such activities as are necessary to promote access to postsecondary education for students through providing information on college planning, career preparation, and paying for college. The guaranty agency shall publicize such information and coordinate such activi- ties with other entities that either provide or distribute such information in the States for which such guaranty agency serves as the des- ignated guarantor. (3) Funding The activities required by this section may be funded from the guaranty agency’s Oper- ating Fund established pursuant to section 1072b of this title and, to the extent funds re- main, from earnings on the restricted account established pursuant to section 1072(h)(4) of this title. (4) Rule of construction Nothing in this subsection shall be con- strued to require a guaranty agency to dupli- Page 696 TITLE 20—EDUCATION § 1092f cate any efforts under way on February 8, 2006, that meet the requirements of this section. (c) Access to information (1) Secretary’s responsibility The Secretary shall ensure the availability of the information provided, by the guaranty agencies in accordance with this section, to students, parents, and other interested indi- viduals, through Internet web links or other methods prescribed by the Secretary. (2) Guaranty agency responsibility The guaranty agencies shall ensure that the information required by this section is avail- able without charge in printed format for stu- dents and parents requesting such informa- tion. (3) Publicity Not later than 270 days after February 8, 2006, the Secretary and guaranty agencies shall publicize the availability of the informa- tion required by this section, with special em- phasis on ensuring that populations that are traditionally underrepresented in postsec- ondary education are made aware of the avail- ability of such information. (Pub. L. 89–329, title IV, § 485D, as added Pub. L. 109–171, title VIII, § 8023, Feb. 8, 2006, 120 Stat. 179.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective July 1, 2006, except as otherwise pro- vided, see section 8001(c) of Pub. L. 109–171, set out as an Effective Date of 2006 Amendment note under sec- tion 1002 of this title. § 1092f. Early awareness and outreach of finan- cial aid eligibility (a) In general The Secretary shall implement early outreach activities in order to provide prospective stu- dents and their families with information about financial aid and estimates of financial aid. Such early outreach activities shall include the activities described in subsections (b), (c), and (d). (b) Pell Grant early awareness estimates (1) In general The Secretary shall produce a consumer- tested method of estimating student eligi- bility for Federal Pell Grants under section 1070a(b) of this title utilizing the variables of family size and adjusted gross income, pre- sented in electronic format. There shall be a method for students to indicate whether they are, or will be in— (A) a single-parent household; (B) a household with two parents; or (C) a household with no children or de- pendents. (2) Consumer testing (A) In general The method of estimating eligibility de- scribed in paragraph (1) shall be consumer tested with prospective first-generation stu- dents and families as well as low-income in- dividuals and families. (B) Updates For award year 2024–2025 and each fourth succeeding award year thereafter, the design of the method of estimating eligibility shall be updated based on additional consumer testing with the populations described in subparagraph (A). (3) Distribution The method of estimating eligibility de- scribed in paragraph (1) shall be— (A) made publicly and prominently avail- able on the Department’s website; and (B) actively shared by the Secretary with— (i) institutions of higher education par- ticipating in programs under this sub- chapter; (ii) all middle and secondary schools eli- gible for funds under part A of title I of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6311 et seq.]; (iii) local educational agencies and mid- dle schools and high schools that serve students not less than 25 percent of whom meet a measure of poverty as described in section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6313(a)(5)]; and (iv) agencies responsible for admin- istering means-tested Federal benefit pro- grams, as defined in section 1087ss(b)(4)(H) of this title. (4) Electronic estimator on FAFSA In accordance with subsection (d)(5) of sec- tion 1090 of this title, the Secretary shall maintain an electronic method for applicants to enter income and family size, and level of education sought information to calculate a non-binding estimate (which may include a range, ceiling, or minimum) of the applicant’s Federal financial aid available under this sub- chapter and shall place such calculator on a prominent location on the FAFSA website and in a manner that encourages students to fill out the FAFSA. (c) Early awareness plans The Secretary shall establish and implement early awareness and outreach plans to provide early information about the availability of Fed- eral financial aid and estimates of prospective students’ eligibility for Federal financial aid as well as to promote the attainment of postsec- ondary education specifically among prospective first-generation students and families as well as low-income individuals and families, as follows: (1) Outreach plans for low-income families (A) In general The Secretary shall develop plans for each population described in this subparagraph to disseminate information about the avail- ability of Federal financial aid under this subchapter, in addition to and in coordina- tion with the distribution of the method of estimating eligibility under subsection (b), to—