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20 U.S.C. § 1098 — Advisory Committee on Student Financial

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20 U.S.C. § 1098 — Advisory Committee on Student Financial

§ 1098. Advisory Committee on Student Financial Assistance (a) Establishment and purpose (1) There is established in the Department an independent Advisory Committee on Student Fi- nancial Assistance (hereafter in this section re- ferred to as the ‘‘Advisory Committee’’) which shall provide advice and counsel to the author- izing committees and to the Secretary on stu- dent financial aid matters. (2) The purpose of the Advisory Committee is— (A) to provide extensive knowledge and un- derstanding of the Federal, State, and institu- tional programs of postsecondary student as- sistance; (B) to provide technical expertise with re- gard to systems of needs analysis and applica- tion forms; (C) to make recommendations that will re- sult in the maintenance of access to postsec- ondary education for low- and middle-income students; (D) to provide knowledge and understanding of early intervention programs, and to make recommendations that will result in early awareness by low- and moderate-income stu- dents and families— (i) of their eligibility for assistance under this subchapter; and (ii) to the extent practicable, of their eligi- bility for other forms of State and institu- tional need-based student assistance; (E) to make recommendations that will ex- pand and improve partnerships among the Federal Government, States, institutions of higher education, and private entities to in- crease the awareness and the total amount of need-based student assistance available to low- and moderate-income students; and (F) to collect information on Federal regula- tions, and on the impact of Federal regula- tions on student financial assistance and on the cost of receiving a postsecondary edu- cation, and to make recommendations to help streamline the regulations f

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Page 718 TITLE 20—EDUCATION § 1097a 1 See References in Text note below. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2020 AMENDMENT Amendment by Pub. L. 116–251 effective 180 days after Dec. 22, 2020, see section 6 of Pub. L. 116–251, set out as a note under section 1018 of this title. GUIDANCE Pub. L. 116–251, § 2(b), Dec. 22, 2020, 134 Stat. 1129, pro- vided that: ‘‘The Secretary shall issue guidance regard- ing the use of access devices in a manner that complies with this Act [see Short Title of 2020 Amendment note set out under section 1001 of this title], and the amend- ments made by this Act.’’ EFFECTIVE DATE OF PENALTIES Pub. L. 116–251, § 2(c), Dec. 22, 2020, 134 Stat. 1129, pro- vided that: ‘‘Notwithstanding section 6 [set out as an Effective Date of 2020 Amendment note under section 1018 of this title], the penalties described in section 490(e) of the Higher Education Act of 1965 (20 U.S.C. 1097[(e)]), as added by subsection (a), shall take effect the day after the date on which the Secretary issues guidance regarding the use of access devices, as de- scribed in subsection (b) [set out as a Guidance note above].’’ § 1097a. Administrative subpoenas (a) Authority To assist the Secretary in the conduct of in- vestigations of possible violations of the provi- sions of this subchapter, the Secretary is au- thorized to require by subpoena the production of information, documents, reports, answers, records, accounts, papers, and other documen- tary evidence pertaining to participation in any program under this subchapter. The production of any such records may be required from any place in a State. (b) Enforcement In case of contumacy by, or refusal to obey a subpoena issued to, any person, the Secretary may request the Attorney General to invoke the aid of any court of the United States where such person resides or transacts business for a court order for the enforcement of this section. (Pub. L. 89–329, title IV, § 490A, as added Pub. L. 105–244, title IV, § 490B, Oct. 7, 1998, 112 Stat. 1754.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 1998, except as otherwise pro- vided in Pub. L. 105–244, see section 3 of Pub. L. 105–244, set out as an Effective Date of 1998 Amendment note under section 1001 of this title. § 1098. Advisory Committee on Student Financial Assistance (a) Establishment and purpose (1) There is established in the Department an independent Advisory Committee on Student Fi- nancial Assistance (hereafter in this section re- ferred to as the ‘‘Advisory Committee’’) which shall provide advice and counsel to the author- izing committees and to the Secretary on stu- dent financial aid matters. (2) The purpose of the Advisory Committee is— (A) to provide extensive knowledge and un- derstanding of the Federal, State, and institu- tional programs of postsecondary student as- sistance; (B) to provide technical expertise with re- gard to systems of needs analysis and applica- tion forms; (C) to make recommendations that will re- sult in the maintenance of access to postsec- ondary education for low- and middle-income students; (D) to provide knowledge and understanding of early intervention programs, and to make recommendations that will result in early awareness by low- and moderate-income stu- dents and families— (i) of their eligibility for assistance under this subchapter; and (ii) to the extent practicable, of their eligi- bility for other forms of State and institu- tional need-based student assistance; (E) to make recommendations that will ex- pand and improve partnerships among the Federal Government, States, institutions of higher education, and private entities to in- crease the awareness and the total amount of need-based student assistance available to low- and moderate-income students; and (F) to collect information on Federal regula- tions, and on the impact of Federal regula- tions on student financial assistance and on the cost of receiving a postsecondary edu- cation, and to make recommendations to help streamline the regulations for institutions of higher education from all sectors. (b) Independence of Advisory Committee In the exercise of its functions, powers, and duties, the Advisory Committee shall be inde- pendent of the Secretary and the other offices and officers of the Department. Notwithstanding Department of Education policies and regula- tions, the Advisory Committee shall exert inde- pendent control of its budget allocations, ex- penditures and staffing levels, personnel deci- sions and processes, procurements, and other ad- ministrative and management functions. The Advisory Committee’s administration and man- agement shall be subject to the usual and cus- tomary Federal audit procedures. Reports, pub- lications, and other documents of the Advisory Committee, including such reports, publica- tions, and documents in electronic form, shall not be subject to review by the Secretary. The recommendations of the Committee shall not be subject to review or approval by any officer in the executive branch, but may be submitted to the Secretary for comment prior to submission to the authorizing committees in accordance with subsection (f). The Secretary’s authority to terminate advisory committees of the Depart- ment pursuant to section 1233g(b) 1 of this title ceased to be effective on June 23, 1983. (c) Membership (1) The Advisory Committee shall consist of 11 members appointed as follows: (A) Four members shall be appointed by the President pro tempore of the Senate, of whom two members shall be appointed from rec- ommendations by the Majority Leader of the Page 719 TITLE 20—EDUCATION § 1098 Senate, and two members shall be appointed from recommendations by the Minority Lead- er of the Senate. (B) Four members shall be appointed by the Speaker of the House of Representatives, of whom two members shall be appointed from recommendations by the Majority Leader of the House of Representatives, and two mem- bers shall be appointed from recommendations by the Minority Leader of the House of Rep- resentatives. (C) Three members shall be appointed by the Secretary, of whom at least one member shall be a student. (2) Each member of the Advisory Committee, with the exception of a student member, shall be appointed on the basis of technical qualifica- tions, professional experience, and demonstrated knowledge in the fields of higher education, stu- dent financial aid, financing post-secondary edu- cation, and the operations and financing of stu- dent loan guarantee agencies. (3) The appointment of a member under sub- paragraph (A) or (B) of paragraph (1) shall be ef- fective upon publication of such appointment in the Congressional Record. (d) Functions of the Committee The Advisory Committee shall— (1) develop, review, and comment annually upon the system of needs analysis established under part F of this subchapter; (2) monitor, apprise, and evaluate the effec- tiveness of student aid delivery and rec- ommend improvements; (3) recommend data collection needs and stu- dent information requirements which would improve access and choice for eligible students under this subchapter and assist the Depart- ment of Education in improving the delivery of student aid; (4) assess the impact of legislative and ad- ministrative policy proposals; (5) review and comment upon, prior to pro- mulgation, all regulations affecting programs under this subchapter, including proposed reg- ulations; (6) recommend to the authorizing commit- tees and to the Secretary such studies, sur- veys, and analyses of student financial assist- ance programs, policies, and practices, includ- ing the special needs of low-income, disadvan- taged, and nontraditional students, and the means by which the needs may be met; (7) review and comment upon standards by which financial need is measured in deter- mining eligibility for Federal student assist- ance programs; (8) appraise the adequacies and deficiencies of current student financial aid information resources and services and evaluate the effec- tiveness of current student aid information programs; (9) provide an annual report to the author- izing committees that provides analyses and policy recommendations regarding— (A) the adequacy of need-based grant aid for low- and moderate-income students; and (B) the postsecondary enrollment and graduation rates of low- and moderate-in- come students; (10) develop and maintain an information clearinghouse to help institutions of higher education understand the regulatory impact of the Federal Government on institutions of higher education from all sectors, in order to raise awareness of institutional legal obliga- tions and provide information to improve com- pliance with, and to reduce the duplication and inefficiency of, Federal regulations; and (11) make special efforts to advise Members of Congress and such Members’ staff of the findings and recommendations made pursuant to this paragraph. (e) Operations of the Committee (1) Each member of the Advisory Committee shall be appointed for a term of 4 years, except that, of the members first appointed— (A) 4 shall be appointed for a term of 1 year; (B) 4 shall be appointed for a term of 2 years; and (C) 3 shall be appointed for a term of 3 years, as designated at the time of appointment by the Secretary. (2) Any member appointed to fill a vacancy oc- curring prior to the expiration of the term of a predecessor shall be appointed only for the re- mainder of such term. A member of the Advi- sory Committee serving on August 14, 2008, shall be permitted to serve the duration of the mem- ber’s term, regardless of whether the member was previously appointed to more than one term. (3) No officers or full-time employees of the Federal Government shall serve as members of the Advisory Committee. (4) The Advisory Committee shall elect a Chairman and a Vice Chairman from among its members. (5) Six members of the Advisory Committee shall constitute a quorum. (6) The Advisory Committee shall meet at the call of the Chairman or a majority of its mem- bers. (f) Submission to Department for comment The Advisory Committee may submit its pro- posed recommendations to the Department of Education for comment for a period not to ex- ceed 30 days in each instance. (g) Compensation and expenses Members of the Advisory Committee may each receive reimbursement for travel expenses inci- dent to attending Advisory Committee meet- ings, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, for per- sons in the Government service employed inter- mittently. (h) Personnel and resources (1) The Advisory Committee may appoint such personnel as may be determined necessary by the Chairman without regard to the provisions of title 5 governing appointments in the com- petitive service, and may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classi- fication and General Schedule pay rates, but no individual so appointed shall be paid in excess of the rate authorized for GS–18 of the General Schedule. The Advisory Committee may appoint Page 720 TITLE 20—EDUCATION § 1098 not more than 1 full-time equivalent, nonperma- nent, consultant without regard to the provi- sions of title 5. The Advisory Committee shall not be required by the Secretary to reduce per- sonnel to meet agency personnel reduction goals. (2) In carrying out its duties under this chap- ter, the Advisory Committee shall consult with other Federal agencies, representatives of State and local governments, and private organiza- tions to the extent feasible. (3)(A) The Advisory Committee is authorized to secure directly from any executive depart- ment, bureau, agency, board, commission, office, independent establishment, or instrumentality information, suggestions, estimates, and statis- tics for the purpose of this section and each such department, bureau, agency, board, commission, office, independent establishment, or instrumen- tality is authorized and directed, to the extent permitted by law, to furnish such information, suggestions, estimates, and statistics directly to the Advisory Committee, upon request made by the Chairman. (B) The Advisory Committee may enter into contracts for the acquisition of information, suggestions, estimates, and statistics for the purpose of this section. (4) The Advisory Committee is authorized to obtain the services of experts and consultants without regard to section 3109 of title 5 and to set pay in accordance with such section. (5) The head of each Federal agency shall, to the extent not prohibited by law, cooperate with the Advisory Committee in carrying out this section. (6) The Advisory Committee is authorized to utilize, with their consent, the services, per- sonnel, information, and facilities of other Fed- eral, State, local, and private agencies with or without reimbursement. (i) Availability of funds In each fiscal year not less than $800,000, shall be available from the amount appropriated for each such fiscal year from salaries and expenses of the Department for the costs of carrying out the provisions of this section. (j) Special analyses and activities The Advisory Committee shall— (1) monitor and evaluate the modernization of student financial aid systems and delivery processes and simplifications, including rec- ommendations for improvement; (2) assess the adequacy of current methods for disseminating information about programs under this subchapter and recommend im- provements, as appropriate, regarding early needs assessment and information for first- year secondary school students; (3) assess and make recommendations con- cerning the feasibility and degree of use of ap- propriate technology in the application for, and delivery and management of, financial as- sistance under this subchapter, as well as poli- cies that promote use of such technology to reduce cost and enhance service and program integrity, including electronic application and reapplication, just-in-time delivery of funds, reporting of disbursements and reconciliation; (4) conduct a review and analysis of regula- tions in accordance with subsection (l); and (5) conduct a study in accordance with sub- section (m). (k) Term of Committee Notwithstanding the sunset and charter provi- sions of chapter 10 of title 5 or any other statute or regulation, the Advisory Committee shall be authorized until October 1, 2015. (l) Review and analysis of regulations (1) Recommendations The Advisory Committee shall make rec- ommendations to the Secretary and the au- thorizing committees for consideration of fu- ture legislative action regarding redundant or outdated regulations consistent with the Sec- retary’s requirements under section 1099c–2 of this title. (2) Review and analysis of regulations (A) Review of current regulations To meet the requirements of subsection (d)(10), the Advisory Committee shall con- duct a review and analysis of the regulations issued by Federal agencies that are in effect at the time of the review and that apply to the operations or activities of institutions of higher education from all sectors. The re- view and analysis may include a determina- tion of whether the regulation is duplica- tive, is no longer necessary, is inconsistent with other Federal requirements, or is over- ly burdensome. In conducting the review, the Advisory Committee shall pay specific attention to evaluating ways in which regu- lations under this subchapter affecting insti- tutions of higher education (other than in- stitutions described in section 1002(a)(1)(C) of this title), that have received in each of the two most recent award years prior to August 14, 2008, less than $200,000 in funds through this subchapter, may be improved, streamlined, or eliminated. (B) Review and collection of future regula- tions The Advisory Committee shall— (i) monitor all Federal regulations, in- cluding notices of proposed rulemaking, for their impact or potential impact on higher education; and (ii) provide a succinct description of each regulation or proposed regulation that is generally relevant to institutions of high- er education from all sectors. (C) Maintenance of public website The Advisory Committee shall develop and maintain an easy to use, searchable, and reg- ularly updated website that— (i) provides information collected in sub- paragraph (B); (ii) provides an area for the experts and members of the public to provide rec- ommendations for ways in which the regu- lations may be streamlined; and (iii) publishes the study conducted by the National Research Council of the Na- tional Academy of Sciences under section 1106 of the Higher Education Opportunity Act. Page 721 TITLE 20—EDUCATION § 1098 (3) Consultation (A) In general In carrying out the review, analysis, and development of the website required under paragraph (2), the Advisory Committee shall consult with the Secretary, other Federal agencies, relevant representatives of institu- tions of higher education, individuals who have expertise and experience with Federal regulations, and the review panels described in subparagraph (B). (B) Review panels The Advisory Committee shall convene not less than two review panels of represent- atives of the groups involved in higher edu- cation, including individuals involved in stu- dent financial assistance programs under this subchapter, who have experience and ex- pertise in the regulations issued by the Fed- eral Government that affect all sectors of higher education, in order to review the reg- ulations and to provide recommendations to the Advisory Committee with respect to the review and analysis under paragraph (2). The panels shall be made up of experts in areas such as the operations of the financial as- sistance programs, the institutional eligi- bility requirements for the financial assist- ance programs, regulations not directly re- lated to the operations or the institutional eligibility requirements of the financial as- sistance programs, and regulations for dis- semination of information to students about the financial assistance programs. (4) Periodic updates to the authorizing com- mittees The Advisory Committee shall— (A) submit, not later than two years after the completion of the negotiated rulemaking process required under section 1098a of this title resulting from the amendments to this chapter made by the Higher Education Op- portunity Act, a report to the authorizing committees and the Secretary detailing the review panels’ findings and recommenda- tions with respect to the review of regula- tions; and (B) provide periodic updates to the author- izing committees regarding— (i) the impact of all Federal regulations on all sectors of higher education; and (ii) suggestions provided through the website for streamlining or eliminating duplicative regulations. (5) Additional support The Secretary and the Inspector General of the Department shall provide such assistance and resources to the Advisory Committee as the Secretary and Inspector General deter- mine are necessary to conduct the review and analysis required by this subsection. (m) Study of innovative pathways to bacca- laureate degree attainment (1) Study required The Advisory Committee shall conduct a study of the feasibility of increasing bacca- laureate degree attainment rates by reducing the costs and financial barriers to attaining a baccalaureate degree through innovative pro- grams. (2) Scope of study The Advisory Committee shall examine new and existing programs that promote bacca- laureate degree attainment through innova- tive ways, such as dual or concurrent enroll- ment programs, changes made to the Federal Pell Grant program, simplification of the needs analysis process, compressed or modular scheduling, articulation agreements, and pro- grams that allow two-year institutions of higher education to offer baccalaureate de- grees. (3) Required aspects of the study In performing the study described in this subsection, the Advisory Committee shall ex- amine the following aspects of such innovative programs: (A) The impact of such programs on bacca- laureate attainment rates. (B) The degree to which a student’s total cost of attaining a baccalaureate degree can be reduced by such programs. (C) The ways in which low- and moderate- income students can be specifically targeted by such programs. (D) The ways in which nontraditional stu- dents can be specifically targeted by such programs. (E) The cost-effectiveness for the Federal Government, States, and institutions of higher education to implement such pro- grams. (4) Consultation (A) In general In performing the study described in this subsection, the Advisory Committee shall consult with a broad range of interested par- ties in higher education, including parents, students, appropriate representatives of sec- ondary schools and institutions of higher education, appropriate State administrators, administrators of dual or concurrent enroll- ment programs, and appropriate Department officials. (B) Consultation with the authorizing com- mittees The Advisory Committee shall consult on a regular basis with the authorizing commit- tees in carrying out the study required by this subsection. (5) Reports to authorizing committees (A) Interim report The Advisory Committee shall prepare and submit to the authorizing committees and the Secretary an interim report, not later than one year after August 14, 2008, describ- ing the progress made in conducting the study required by this subsection and any preliminary findings on the topics identified under paragraph (2). (B) Final report The Advisory Committee shall, not later than three years after August 14, 2008, pre- Page 722 TITLE 20—EDUCATION § 1098 pare and submit to the authorizing commit- tees and the Secretary a final report on the study, including recommendations for legis- lative, regulatory, and administrative changes based on findings related to the top- ics identified under paragraph (2). (Pub. L. 89–329, title IV, § 491, as added Pub. L. 99–498, title IV, § 407(a), Oct. 17, 1986, 100 Stat. 1492; amended Pub. L. 100–50, § 15(16)–(18), June 3, 1987, 101 Stat. 357; Pub. L. 102–325, title IV, § 496, July 23, 1992, 106 Stat. 631; Pub. L. 103–208, § 2(h)(45), (46), Dec. 20, 1993, 107 Stat. 2478; Pub. L. 105–244, title IV, § 490C, Oct. 7, 1998, 112 Stat. 1754; Pub. L. 110–315, title IV, § 494C, Aug. 14, 2008, 122 Stat. 3319; Pub. L. 111–39, title IV, § 407(b)(11), July 1, 2009, 123 Stat. 1953; Pub. L. 113–174, § 2, Sept. 26, 2014, 128 Stat. 1900; Pub. L. 117–286, § 4(a)(147), Dec. 27, 2022, 136 Stat. 4322.) Editorial Notes REFERENCES IN TEXT Section 1233g of this title, referred to in subsec. (b), was repealed by Pub. L. 103–382, title II, § 212(a)(2), Oct. 20, 1994, 108 Stat. 3913. The Higher Education Opportunity Act, referred to in subsec. (l)(4)(A), is Pub. L. 110–315, Aug. 14, 2008, 122 Stat. 3078. Section 1106 of the Act is not classified to the Code. For complete classification of such Act to the Code, see Short Title of 2008 Amendment note set out under section 1001 of this title and Tables. PRIOR PROVISIONS A prior section 1098, Pub. L. 89–329, title IV, § 491, as added Pub. L. 96–374, title IV, § 451(a), Oct. 3, 1980, 94 Stat. 1454; amended Pub. L. 98–79, § 11, Aug. 15, 1983, 97 Stat. 484, related to a National Commission on Student Financial Assistance, prior to the general revision of this part by Pub. L. 99–498. Another prior section 491 of Pub. L. 89–329 amended former section 403 of this title. AMENDMENTS 2022—Subsec. (k). Pub. L. 117–286 substituted ‘‘chapter 10 of title 5’’ for ‘‘the Federal Advisory Committee Act’’. 2014—Subsec. (k). Pub. L. 113–174 substituted ‘‘2015’’ for ‘‘2014’’. 2009—Subsec. (l)(2)(A). Pub. L. 111–39 made technical amendment to reference in original act which appears in text as reference to August 14, 2008. 2008—Subsec. (a)(1). Pub. L. 110–315, § 494C(b), sub- stituted ‘‘authorizing committees’’ for ‘‘Congress’’. Subsec. (a)(2)(D) to (F). Pub. L. 110–315, § 494C(a)(1), added subpars. (D) to (F). Subsec. (b). Pub. L. 110–315, § 494C(b), substituted ‘‘au- thorizing committees’’ for ‘‘Congress’’. Subsec. (c). Pub. L. 110–315, § 494C(a)(2), added subsec. (c) and struck out former subsec. (c) relating to ap- pointment and qualifications of Advisory Committee members. Subsec. (d)(6). Pub. L. 110–315, § 494C(a)(3)(A), (b), sub- stituted ‘‘authorizing committees’’ for ‘‘Congress’’ and struck out ‘‘, but nothing in this section shall author- ize the committee to perform such studies, surveys, or analyses’’ before semicolon. Subsec. (d)(9) to (11). Pub. L. 110–315, § 494C(a)(3)(B)–(D), added pars. (9) and (10) and redesig- nated former par. (9) as (11). Subsec. (e)(1). Pub. L. 110–315, § 494C(a)(4)(A), sub- stituted ‘‘4 years’’ for ‘‘3 years’’ in introductory provi- sion. Subsec. (e)(2). Pub. L. 110–315, § 494C(a)(4)(B), sub- stituted ‘‘A member of the Advisory Committee serving on August 14, 2008, shall be permitted to serve the dura- tion of the member’s term, regardless of whether the member was previously appointed to more than one term.’’ for ‘‘A member of the Advisory Committee shall, upon request, continue to serve after the expira- tion of a term until a successor has been appointed. A member of the Advisory Committee may be re- appointed to successive terms on the Advisory Com- mittee.’’ Subsec. (j)(1). Pub. L. 110–315, § 494C(a)(5)(A), inserted ‘‘and simplifications’’ after ‘‘delivery processes’’ and struck out ‘‘including the implementation of a per- formance-based organization within the Department, and report to Congress regarding such modernization on not less than an annual basis,’’ before ‘‘including recommendations for improvement’’. Subsec. (j)(4), (5). Pub. L. 110–315, § 494C(a)(5)(B), added pars. (4) and (5) and struck out former pars. (4) and (5) which read as follows: ‘‘(4) assess the implications of distance education on student eligibility and other requirements for financial assistance under this subchapter, and make rec- ommendations that will enhance access to postsec- ondary education through distance education while maintaining access, through on-campus instruction at eligible institutions, and program integrity; and ‘‘(5) make recommendations to the Secretary regard- ing redundant or outdated provisions of and regulations under this chapter, consistent with the Secretary’s re- quirements under section 1099c–2 of this title.’’ Subsec. (k). Pub. L. 110–315, § 494C(a)(6), substituted ‘‘2014’’ for ‘‘2004’’. Subsecs. (l), (m). Pub. L. 110–315, § 494C(a)(7), added subsecs. (l) and (m). 1998—Subsec. (b). Pub. L. 105–244, § 490C(1), substituted ‘‘, expenditures and staffing levels’’ for ‘‘and expendi- tures’’ in second sentence and inserted ‘‘Reports, publi- cations, and other documents of the Advisory Com- mittee, including such reports, publications, and docu- ments in electronic form, shall not be subject to review by the Secretary.’’ after third sentence. Subsec. (e)(3) to (6). Pub. L. 105–244, § 490C(2), added par. (3) and redesignated former pars. (3) to (5) as (4) to (6), respectively. Subsec. (g). Pub. L. 105–244, § 490C(3), substituted ‘‘Members of the Advisory Committee may each’’ for ‘‘(1) Members of the Advisory Committee who are of- ficers or full-time employees of the United States shall serve without compensation in addition to that re- ceived for their services as officers or employees of the United States; but they may be allowed travel ex- penses, including per diem in lieu of subsistence, as au- thorized by section 5703 of title 5, for persons in the Government service employed intermittently. ‘‘(2) Members of the Advisory Committee who are not officers or full-time employees of the United States may each’’. Subsec. (h)(1). Pub. L. 105–244, § 490C(4), inserted ‘‘de- termined’’ after ‘‘as may be’’ and inserted at end ‘‘The Advisory Committee may appoint not more than 1 full- time equivalent, nonpermanent, consultant without re- gard to the provisions of title 5. The Advisory Com- mittee shall not be required by the Secretary to reduce personnel to meet agency personnel reduction goals.’’ Subsec. (i). Pub. L. 105–244, § 490C(5), substituted ‘‘$800,000’’ for ‘‘$750,000’’. Subsec. (j). Pub. L. 105–244, § 490C(6), amended heading and text of subsec. (j) generally. Prior to amendment, text read as follows: ‘‘The committee shall— ‘‘(1) monitor and evaluate the program modifica- tions resulting from the enactment of the Higher Education Amendments of 1992, especially as such amendments relate to the need analysis; ‘‘(2) monitor and evaluate the implementation, pur- suant to section 1090 of this title, of a Free Applica- tion for Federal Student Aid and the process for de- termining eligibility and awards for programs under this subchapter, including a simplified reapplication process; ‘‘(3) assess the adequacy of current methods for dis- seminating information about programs under this subchapter and recommend improvements, as appro- Page 723 TITLE 20—EDUCATION § 1098a priate, regarding early needs assessment and infor- mation for first-year high school students; and ‘‘(4) assess the adequacy of methods of monitoring student debt burden.’’ Subsec. (k). Pub. L. 105–244, § 490C(7), substituted ‘‘2004’’ for ‘‘1998’’. Subsec. (l). Pub. L. 105–244, § 490C(8), struck out head- ing and text of subsec. (l) which directed Advisory Com- mittee to conduct a study of means of simplifying all aspects of loan programs under part B of this sub- chapter. 1993—Subsec. (d)(1). Pub. L. 103–208, § 2(h)(45), struck out ‘‘sections 1070a–1 through 1070a–5 of this title and’’ after ‘‘established under’’. Subsec. (h)(1). Pub. L. 103–208, § 2(h)(46), substituted ‘‘subchapter III’’ for ‘‘subtitle III’’ before ‘‘of chapter 53 of such title’’. 1992—Subsec. (b). Pub. L. 102–325, § 496(a), inserted after first sentence ‘‘Notwithstanding Department of Education policies and regulations, the Advisory Com- mittee shall exert independent control of its budget al- locations and expenditures, personnel decisions and processes, procurements, and other administrative and management functions. The Advisory Committee’s ad- ministration and management shall be subject to the usual and customary Federal audit procedures.’’ Subsec. (d)(3). Pub. L. 102–325, § 496(b)(1), struck out ‘‘and in assessing the impact of legislative and admin- istrative policy proposals’’ after ‘‘student aid’’. Subsec. (d)(4) to (9). Pub. L. 102–325, § 496(b)(2)–(6), added par. (4), redesignated former pars. (4) to (7) as (5) to (8), respectively, and added par. (9). Subsec. (h)(4). Pub. L. 102–325, § 496(c), substituted ‘‘without regard to’’ for ‘‘in accordance with’’ and in- serted before period at end ‘‘and to set pay in accord- ance with such section’’. Subsec. (i). Pub. L. 102–325, § 496(d), substituted ‘‘$750,000’’ for ‘‘$500,000’’. Subsecs. (j) to (l). Pub. L. 102–325, § 496(e), added sub- secs. (j) to (l) and struck out former subsec. (j), which related to special institutional lender study. 1987—Subsec. (b). Pub. L. 100–50, § 15(16), inserted at end ‘‘The Secretary’s authority to terminate advisory committees of the Department pursuant to section 1233g(b) of this title ceased to be effective on June 23, 1983.’’ Subsec. (i). Pub. L. 100–50, § 15(17), substituted ‘‘In each fiscal year not less than $500,000’’ for ‘‘An amount, not to exceed $500,000 in any fiscal year’’. Subsec. (j). Pub. L. 100–50, § 15(18), added subsec. (j). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see sec- tion 3 of Pub. L. 105–244, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title. REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY RATES References in laws to the rates of pay for GS–16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of Title 5, Government Organi- zation and Employees, see section 529 [title I, § 101(c)(1)] of Pub. L. 101–509, set out in a note under section 5376 of Title 5. § 1098a. Regional meetings and negotiated rule- making (a) Meetings (1) In general The Secretary shall obtain public involve- ment in the development of proposed regula- tions for this subchapter. The Secretary shall obtain the advice of and recommendations from individuals and representatives of the groups involved in student financial assistance programs under this subchapter, such as stu- dents, legal assistance organizations that rep- resent students, institutions of higher edu- cation, State student grant agencies, guaranty agencies, lenders, secondary markets, loan servicers, guaranty agency servicers, and col- lection agencies. (2) Issues The Secretary shall provide for a com- prehensive discussion and exchange of infor- mation concerning the implementation of this subchapter through such mechanisms as re- gional meetings and electronic exchanges of information. The Secretary shall take into ac- count the information received through such mechanisms in the development of proposed regulations and shall publish a summary of such information in the Federal Register to- gether with such proposed regulations. (b) Draft regulations (1) In general After obtaining the advice and recommenda- tions described in subsection (a)(1) and before publishing proposed regulations in the Federal Register, the Secretary shall prepare draft regulations implementing this subchapter and shall submit such regulations to a negotiated rulemaking process. Participants in the nego- tiations process shall be chosen by the Sec- retary from individuals nominated by groups described in subsection (a)(1), and shall in- clude both representatives of such groups from Washington, D.C., and industry participants. The Secretary shall select individuals with demonstrated expertise or experience in the relevant subjects under negotiation, reflecting the diversity in the industry, representing both large and small participants, as well as individuals serving local areas and national markets. The negotiation process shall be con- ducted in a timely manner in order that the final regulations may be issued by the Sec- retary within the 360-day period described in section 1232(e) of this title. (2) Expansion of negotiated rulemaking All regulations pertaining to this subchapter that are promulgated after October 7, 1998, shall be subject to a negotiated rulemaking (including the selection of the issues to be ne- gotiated), unless the Secretary determines that applying such a requirement with respect to given regulations is impracticable, unneces-

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Federal law — U.S. Code and appendices · legal_authorities

20 U.S.C. § 1097 — Criminal penalties

**(a) In general** Any person who knowingly and willfully embezzles, misapplies, steals, obtains by fraud, false statement, or forgery, or fails to refund any funds, assets, or property provided or insured under this subchapter or attempts to so embezzle, misapply, steal, obtain by fraud, false statement or forgery, or fail to refund any funds, assets, or property, shall be fined not more than $20,000 or imprisoned for not more than 5 years, or both, except if the amount so embezzled, misapplied, stolen, obtained by fraud, false statement, or forgery, or failed to be refunded does not exceed $200, then the fine shall not be more than $5,000 and imprisonment shall not exceed one year, or both. **(b) Assignment of loans** Any person who knowingly and willfully makes any false statement, furnishes any false information, or conceals any material information in connection with the assignment of a loan which is made or insured under this subchapter or attempts to so make any false statement, furnish any false information, or conceal any material information in connection with such assignment shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than one year, or both. **(c) Inducements to lend or assign** Any person who knowingly and willfully makes an unlawful payment to an eligible lender under part B or attempts to make such unlawful payment as an inducement to make, or to acquire by assignment, a loan insured under such part shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than one year, or both. **(d) Obstruction of justice** Any person who knowingly and willfully destroys or conceals any record relating to the provision of assistance under this subchapter or attempts to so destroy or conceal

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Federal law — U.S. Code and appendices · legal_authorities

20 U.S.C. § 1097 — Criminal penalties

§ 1097. Criminal penalties (a) In general Any person who knowingly and willfully em- bezzles, misapplies, steals, obtains by fraud, false statement, or forgery, or fails to refund any funds, assets, or property provided or in- sured under this subchapter or attempts to so embezzle, misapply, steal, obtain by fraud, false statement or forgery, or fail to refund any funds, assets, or property, shall be fined not more than $20,000 or imprisoned for not more than 5 years, or both, except if the amount so embezzled, misapplied, stolen, obtained by fraud, false statement, or forgery, or failed to be refunded does not exceed $200, then the fine shall not be more than $5,000 and imprisonment shall not exceed one year, or both. (b) Assignment of loans Any person who knowingly and willfully makes any false statement, furnishes any false information, or conceals any material informa- tion in connection with the assignment of a loan which is made or insured under this subchapter or attempts to so make any false statement, fur- nish any false information, or conceal any mate- rial information in connection with such assign- ment shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than one year, or both. (c) Inducements to lend or assign Any person who knowingly and willfully makes an unlawful payment to an eligible lend- er under part B or attempts to make such un- lawful payment as an inducement to make, or to acquire by assignment, a loan insured under such part shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than one year, or both. (d) Obstruction of justice Any person who knowingly and willfully de- stroys or conceals any record relating to the provision of assist

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Federal law — U.S. Code and appendices · legal_authorities

20 U.S.C. § 1098 — Advisory Committee on Student Financial Assistance

**(a) Establishment and purpose** (1) There is established in the Department an independent Advisory Committee on Student Financial Assistance (hereafter in this section referred to as the “Advisory Committee”) which shall provide advice and counsel to the authorizing committees and to the Secretary on student financial aid matters. (2) The purpose of the Advisory Committee is— (A) to provide extensive knowledge and understanding of the Federal, State, and institutional programs of postsecondary student assistance; (B) to provide technical expertise with regard to systems of needs analysis and application forms; (C) to make recommendations that will result in the maintenance of access to postsecondary education for low- and middle-income students; (D) to provide knowledge and understanding of early intervention programs, and to make recommendations that will result in early awareness by low- and moderate-income students and families— (i) of their eligibility for assistance under this subchapter; and (ii) to the extent practicable, of their eligibility for other forms of State and institutional need-based student assistance; (E) to make recommendations that will expand and improve partnerships among the Federal Government, States, institutions of higher education, and private entities to increase the awareness and the total amount of need-based student assistance available to low- and moderate-income students; and (F) to collect information on Federal regulations, and on the impact of Federal regulations on student financial assistance and on the cost of receiving a postsecondary education, and to make recommendations to help streamline the regulations for institutions of higher education from all sectors. **(b) Independence of Advisory Com

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