20 U.S.C. § 1097 — Criminal penalties

Page 717 TITLE 20—EDUCATION § 1097 to correct reference to corresponding section of origi- nal Act, requiring no change in text. 1986—Subsec. (a). Pub. L. 99–603 inserted provision di- recting the Secretary to pay the costs incurred by in- stitutions of higher education in implementing and op- erating the immigration status verification system under section 1091(c) of this title. 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 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 1992 AMENDMENT Amendment by section 446(c) of Pub. L. 102–325 effec- tive Oct. 1, 1992, see section 2 of Pub. L. 102–325, set out as a note under section 1001 of this title. Amendment by section 493 of Pub. L. 102–325, relating to payments for administrative expenses, applicable with respect to funds provided for award years begin- ning on or after July 1, 1993, see section 498(7) of Pub. L. 102–325, set out as a note under section 1088 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. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–603 effective Oct. 1, 1987, see section 121(c)(2) of Pub. L. 99–603, set out as a note under section 502 of Title 42, The Public Health and Welfare. § 1096a. Repealed. Pub. L. 102–325, title IV, § 494, July 23, 1992, 106 Stat. 631 Section, Pub. L. 89–329, title IV, § 489A, as added Pub. L. 102–164, title VI, § 606, Nov. 15, 1991, 105 Stat. 1068, re- lated to data matching. § 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 assistance under this subchapter or attempts to so destroy or conceal with intent to defraud the United States or to prevent the United States from enforcing any right obtained by subrogation under this part, shall upon con- viction thereof, be fined not more than $20,000 or imprisoned not more than 5 years, or both. (e) Access to Department of Education informa- tion technology systems for fraud, commer- cial advantage, or private financial gain Any person who knowingly uses an access de- vice, as defined in section 1029(e)(1) of title 18, issued to another person or obtained by fraud or false statement to access Department informa- tion technology systems for purposes of obtain- ing commercial advantage or private financial gain, or in furtherance of any criminal or tortious act in violation of the Constitution or laws of the United States or of any State, shall be fined not more than $20,000, imprisoned for not more than 5 years, or both. (Pub. L. 89–329, title IV, § 490, as added Pub. L. 99–498, title IV, § 407(a), Oct. 17, 1986, 100 Stat. 1491; amended Pub. L. 102–325, title IV, § 495, July 23, 1992, 106 Stat. 631; Pub. L. 116–251, § 2(a), Dec. 22, 2020, 134 Stat. 1129.) Editorial Notes PRIOR PROVISIONS A prior section 1097, Pub. L. 89–329, title IV, § 490, as added Pub. L. 96–374, title IV, § 451(a), Oct. 3, 1980, 94 Stat. 1453, related to criminal penalties, prior to the general revision of this part by Pub. L. 99–498. AMENDMENTS 2020—Subsec. (e). Pub. L. 116–251 added subsec. (e). 1992—Pub. L. 102–325 amended section generally, in- serting provisions relating to attempted offenses, wher- ever appearing, and in subsec. (a) inserting provisions relating to failure to refund and substituting provisions relating to $20,000 and $5,000 fines for provisions relat- ing to $10,000 and $1,000 fines, respectively, in subsec. (b) substituting provisions relating to $10,000 fines for provisions relating to $1,000 fines, in subsec. (c) sub- stituting provisions relating to $10,000 fines for provi- sions relating $1,000 fines, and in subsec. (d) sub- stituting provisions relating to $20,000 fines for provi- sions relating to $10,000 fines. 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