20 U.S.C. § 1095 — Transfer of allotments

Page 714 TITLE 20—EDUCATION § 1094b 1 So in original. Probably should be ‘‘institution’s’’. Subsec. (b)(4). Pub. L. 111–39, § 407(b)(9)(B), added par. (4). 2008—Subsec. (a)(5). Pub. L. 110–315, § 103(b)(13), sub- stituted ‘‘authorizing committees’’ for ‘‘Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives’’. Subsec. (b)(1). Pub. L. 110–315, § 494(1), amended par. (1) generally. Prior to amendment, text read as follows: ‘‘The Secretary may continue any experimental sites in existence on October 7, 1998. Any activities approved by the Secretary prior to October 7, 1998, that are in- consistent with this section shall be discontinued not later than June 30, 1999.’’ Subsec. (b)(2). Pub. L. 110–315, § 494(2), added introduc- tory provisions and struck out former introductory provisions which read as follows: ‘‘The Secretary shall review and evaluate the experience of institutions par- ticipating as experimental sites during the period of 1993 through 1998 under this section (as such section was in effect on the day before October 7, 1998), and shall submit a report based on this review and evalua- tion to the Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives not later than 6 months after October 7, 1998. Such report shall include—’’. Subsec. (b)(3)(A). Pub. L. 110–315, § 494(3)(A), sub- stituted ‘‘The’’ for ‘‘Upon the submission of the report required by paragraph (2), the’’ and inserted ‘‘periodi- cally’’ after ‘‘authorized to’’. Subsec. (b)(3)(B). Pub. L. 110–315, § 494(3)(D), inserted ‘‘, including requirements related to the award process and disbursement of student financial aid (such as in- novative delivery systems for modular or compressed courses, or other innovative systems), verification of student financial aid application data, entrance and exit interviews, or other management procedures or processes as determined in the negotiated rulemaking process under section 1098a of this title’’ before ‘‘, or regulations prescribed’’, ‘‘(other than an award rule re- lated to an experiment in modular or compressed schedules)’’ after ‘‘award rules’’, and ‘‘unless the waiver of such provisions is authorized by another provision under this subchapter’’ before period at end. Pub. L. 110–315, § 494(3)(B), (C), redesignated subpar. (C) as (B) and struck out former subpar. (B). Text of former subpar. (B) read as follows: ‘‘Prior to approving any additional experimental sites, the Secretary shall consult with the Committee on Labor and Human Re- sources of the Senate and the Committee on Education and the Workforce of the House of Representatives and shall provide to such Committees— ‘‘(i) a list of institutions proposed for participation in the experiment and the specific statutory or regu- latory waivers proposed to be granted to each institu- tion; ‘‘(ii) a statement of the objectives to be achieved through the experiment; and ‘‘(iii) an identification of the period of time over which the experiment is to be conducted.’’ Subsec. (b)(3)(C). Pub. L. 110–315, § 494(3)(C), redesig- nated subpar. (C) as (B). 1998—Pub. L. 105–244 amended section catchline and text generally. Prior to amendment, section authorized a Quality Assurance Program for institutions to de- velop and implement systems for verifying student fi- nancial aid application data. 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. § 1094b. Assignment of identification numbers The Secretary shall assign to each participant in subchapter IV programs, including institu- tions, lenders, and guaranty agencies, a single Department of Education identification number to be used to identify its participation in each of the subchapter IV programs. (Pub. L. 89–329, title IV, § 487B, as added Pub. L. 102–325, title IV, § 491, July 23, 1992, 106 Stat. 630.) § 1095. Transfer of allotments In order to offer an arrangement of types of aid, including institutional and State aid which best fits the needs of each individual student, an institution may (1) transfer a total of 25 percent of the institutions 1 allotment under section 1087bb of this title to the institution’s allotment under section 1070b–3 or 1087–52 of this title (or both); (2) transfer 25 percent of the institution’s allotment under section 1087–52 of this title to the institution’s allotment under section 1070b–3 or 1087bb of this title (or both); and (3) transfer 25 percent of the institution’s allotment under section 1070b–3 of this title to the institution’s allotment under section 1087–52 of this title. Funds transferred to an institution’s allotment under another section may be used as a part of and for the same purposes as funds allotted under that section. The Secretary shall have no control over such transfer, except as specifically authorized, except for the collection and dis- semination of information. (Pub. L. 89–329, title IV, § 488, as added Pub. L. 99–498, title IV, § 407(a), Oct. 17, 1986, 100 Stat. 1490; amended Pub. L. 100–50, § 15(14), June 3, 1987, 101 Stat. 357; Pub. L. 102–325, title IV, § 492, July 23, 1992, 106 Stat. 630; Pub. L. 110–315, title IV, § 494A, Aug. 14, 2008, 122 Stat. 3319.) Editorial Notes PRIOR PROVISIONS A prior section 1095, Pub. L. 89–329, title IV, § 488, as added Pub. L. 96–374, title IV, § 451(a), Oct. 3, 1980, 94 Stat. 1452, related to transfer of allotments, prior to the general revision of this part by Pub. L. 99–498. AMENDMENTS 2008—Pub. L. 110–315 struck out ‘‘and’’ after semi- colon in par. (1), substituted ‘‘section 1070b–3 or 1087bb of this title (or both); and’’ for ‘‘section 1070b–3 of this title.’’ in par. (2), and added par. (3). 1992—Pub. L. 102–325 inserted first two sentences and struck out former first sentence which read as follows: ‘‘Up to 10 percent of the allotment of an eligible insti- tution for a fiscal year under section 1070b–3 or 1087–52 of this title, may be transferred to, and used for the purposes of, the institution’s allotment under the other section within the discretion of such institution in order to offer an arrangement of types of aid, including institutional and State aid, which best fits the needs of each individual student.’’ 1987—Pub. L. 100–50 substituted ‘‘or 1087–52’’ for ‘‘or 1087–56’’. Page 715 TITLE 20—EDUCATION § 1095a Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–325 to this section, relat- ing to transfers of allotments, applicable with respect to funds provided for award years beginning on or after July 1, 1993, see section 498 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. § 1095a. Wage garnishment requirement (a) Garnishment requirements Notwithstanding any provision of State law, a guaranty agency, or the Secretary in the case of loans made, insured or guaranteed under this subchapter that are held by the Secretary, may garnish the disposable pay of an individual to collect the amount owed by the individual, if he or she is not currently making required repay- ment under a repayment agreement with the Secretary, or, in the case of a loan guaranteed under part B on which the guaranty agency re- ceived reimbursement from the Secretary under section 1078(c) of this title, with the guaranty agency holding the loan, as appropriate, pro- vided that— (1) the amount deducted for any pay period may not exceed 15 percent of disposable pay, except that a greater percentage may be de- ducted with the written consent of the indi- vidual involved; (2) the individual shall be provided written notice, sent by mail to the individual’s last known address, a minimum of 30 days prior to the initiation of proceedings, from the guar- anty agency or the Secretary, as appropriate, informing such individual of the nature and amount of the loan obligation to be collected, the intention of the guaranty agency or the Secretary, as appropriate, to initiate pro- ceedings to collect the debt through deduc- tions from pay, and an explanation of the rights of the individual under this section; (3) the individual shall be provided an oppor- tunity to inspect and copy records relating to the debt; (4) the individual shall be provided an oppor- tunity to enter into a written agreement with the guaranty agency or the Secretary, under terms agreeable to the Secretary, or the head of the guaranty agency or his designee, as ap- propriate, to establish a schedule for the re- payment of the debt; (5) the individual shall be provided an oppor- tunity for a hearing in accordance with sub- section (b) on the determination of the Sec- retary or the guaranty agency, as appropriate, concerning the existence or the amount of the debt, and, in the case of an individual whose repayment schedule is established other than by a written agreement pursuant to paragraph (4), concerning the terms of the repayment schedule; (6) the employer shall pay to the Secretary or the guaranty agency as directed in the withholding order issued in this action, and shall be liable for, and the Secretary or the guaranty agency, as appropriate, may sue the employer in a State or Federal court of com- petent jurisdiction to recover, any amount that such employer fails to withhold from wages due an employee following receipt of such employer of notice of the withholding order, plus attorneys’ fees, costs, and, in the court’s discretion, punitive damages, but such employer shall not be required to vary the normal pay and disbursement cycles in order to comply with this paragraph; (7) if an individual has been reemployed within 12 months after having been involun- tarily separated from employment, no amount may be deducted from the disposable pay of such individual until such individual has been reemployed continuously for at least 12 months; and (8) an employer may not discharge from em- ployment, refuse to employ, or take discipli- nary action against an individual subject to wage withholding in accordance with this sec- tion by reason of the fact that the individual’s wages have been subject to garnishment under this section, and such individual may sue in a State or Federal court of competent jurisdic- tion any employer who takes such action. The court shall award attorneys’ fees to a pre- vailing employee and, in its discretion, may order reinstatement of the individual, award punitive damages and back pay to the em- ployee, or order such other remedy as may be reasonably necessary. (b) Hearing requirements A hearing described in subsection (a)(5) shall be provided prior to issuance of a garnishment order if the individual, on or before the 15th day following the mailing of the notice described in subsection (a)(2), and in accordance with such procedures as the Secretary or the head of the guaranty agency, as appropriate, may prescribe, files a petition requesting such a hearing. If the individual does not file a petition requesting a hearing prior to such date, the Secretary or the guaranty agency, as appropriate, shall provide the individual a hearing under subsection (a)(5) upon request, but such hearing need not be pro- vided prior to issuance of a garnishment order. A hearing under subsection (a)(5) may not be conducted by an individual under the super- vision or control of the head of the guaranty agency, except that nothing in this sentence shall be construed to prohibit the appointment of an administrative law judge. The hearing offi- cial shall issue a final decision at the earliest practicable date, but not later than 60 days after the filing of the petition requesting the hearing. (c) Notice requirements The notice to the employer of the withholding order shall contain only such information as may be necessary for the employer to comply with the withholding order. (d) No attachment of student assistance Except as authorized in this section, notwith- standing any other provision of Federal or State law, no grant, loan, or work assistance awarded under this subchapter, or property traceable to such assistance, shall be subject to garnishment