PUBLIC LAW 99-498—OCT. 17, 1986
100 STAT. 1443
"(G) add the amounts determined under subparagraph (F) for each income category of independent students; and "(H) add the amounts determined under subparagraphs (E) and (G). "(3) To determine the self-help need of an institution's eligible graduate and professional students, the Secretary, for academic year 1988-1989, shall use the procedures employed for academic year 1986-1987, and, for any subsequent academic years, the Secretary shall— "(A) establish various income categories for graduate and professional students; "(B) establish an expected family contribution for each income category of graduate and professional students, determined on the basis of the average expected family contribution (computed in accordance with part F of this title) of a representative sample within each income category for the second preceding fiscal year; "(C) determine the average cost of attendance for all graduate and professional students; "(D) subtract from the average cost of attendance for all graduate and professional students (determined under subparagraph (O), the expected family contribution (determined under subparagraph (B)) for each income category, except that the amount computed by such subtraction for any income category shall not be less than zero; "(E) multiply the amounts determined under subparagraph (D) by the number of eligible students in each category; "(F) add the amounts determined under subparagraph (E) for each income category. "(3)(A) For purposes of paragraphs (2) and (3), the term 'average cost of attendance' means the average of the attendance costs for undergraduate students and for graduate and professional students, which shall include (i) tuition and fees determined in accordance with subparagraph (B), (ii) standard living expenses determined in accordance with subparagraph (C), and (iii) books and supplies determined in accordance with subparagraph (D). "(B) The average undergraduate and graduate and professional tuition and fees described in subparagraph (A)(i) shall be computed on the basis of information reported by the institution to the Secretary, which shall include (i) total revenue received by the institution from undergraduate and graduate tuition and fees for the second year preceding the year for which it is applying for an allocation, and (ii) the institution's enrollment for such second preceding year. "(C) The standard living expense described in subparagraph (A)(ii) is equal to three-fourths in the Pell Grant family size offset for a single independent student. "(D) The allowance for books and supplies described in subparagraph (A)(iii) is equal to $450. "(e) ANTICIPATED COLLECTIONS; CASH ON HAND.—An institution's
anticipated collections are equal to the amount which was collected during the second year preceding the beginning of the award period, multiplied by 1.21. "(0 DEFAULT PENALTY.—For any institution which has a default rate which equals or exceeds 7.5 percent but does not exceed the maximum default rate applicable to the award year under paragraph (2), the institution's default penalty is a percentage equal to
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