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FSA Information for Financial Aid Professionals
U.S. Department of Education

Citations: (R)652.51
AsOfDate: 12/31/95

How are scholarships to be administered by

institutions of higher education?

(a) The Secretary sends a roster of Scholars and a

notification of an allocation of scholarship funds for each award
year to an institution of higher education that has entered into an
agreement with the Secretary under Sec. 652.50.

(b) An institution of higher education may not disburse

scholarship funds to a Scholar until the Scholar is attending
classes at that institution of higher education and meets the other
eligibility requirements in Sec. 652.40 and, if applicable, the
renewal requirements of Sec. 652.42.

(c) The institution shall award the Scholar a scholarship

for an amount that is determined under Sec. 652.4.

(d) The institution of higher education in which a

Scholar is enrolled for the purpose of obtaining a degree may
allow another institution or organization to provide a portion of the
Scholar's program of study if the institution at which the Scholar
is enrolled to obtain his or her degree--

(1) Enters into a written agreement with the other

institution or organization which is in accordance with the
provisions of 34 CFR 600.9 and which, if the other institution has
entered into an agreement with the Secretary under Sec. 652.50,
is in accordance with the provisions governing written agreements
between two eligible institutions in 34 CFR 690.9 of the Pell Grant
Program regulations; and

(2) Ensures that the Scholar continues to meet the

requirements in subpart E of this part.

(Authority: 20 U.S.C. 5383-5385)