12 2 STA T .3 213 PUBLIC LA W 11 0– 31 5— AU G .1 4, 200 8‘ ‘ (9)Creatingcom m u nit y co l lege p rogram sf or d rop - outs t h at are personali z ed drop-out reco v ery programs that allo w drop-outs to complete a regular secondary school diploma and b egin college-level wor k. ‘‘(d) PRIO RI TYS T UDEN T S . —F or eligible entities not using a cohort approach , the eligible entity shall treat as a priority student any student in secondary school who is— ‘‘( 1 ) eligible to be counted under section 11 24 (c) of the E lementary and Secondary Education A ctof19 65; ‘‘(2) eligible for assistance under a State program funded under part A or E of title IV of the Social Security Act (42 U .S.C. 6 0 1etse q .,6 7 0 et seq.); ‘‘( 3 ) eligible for assistance under subtitle B of title VII of the M c K inney-Vento H omeless Assistance Act (42 U.S.C. 11431 et seq.); or ‘‘(4) otherwise considered by the eligible entity to be a disconnected student. ‘‘(e) A L LO WAB LE PRO V IDERS.—In the case of eligible entities described in section 404A(c)(1), the activities required by this section may be provided by service providers such as community-based organizations, schools, institutions of higher education, public and private agencies, nonprofit and philanthropic organizations, businesses, institutions and agencies sponsoring programs author- ized under subpart 4, and other organizations the State determines appropriate. ’ ’. (e) S CH OLARSHI P CO M PONENT.—Section 404E (20 U.S.C. 1070a – 25) is amended— (1) by striking subsections (e) and (f); (2) by redesignating subsections (b), (c), and (d) as sub- sections (d), (f), and (g), respectively; (3) by inserting after subsection (a) the following
‘‘(b) L IMITATION.— ‘‘(1) IN G ENERAL.—Sub j ect to paragraph (2), each eligible entity described in section 404A(c)(1) that receives a grant under this chapter shall use not less than 25 percent and not more than 50 percent of the grant funds for activities described in section 404 D (e x cept for the activity described in subsection (a)(4) of such section), with the remainder of such funds to be used for a scholarship program under this section in accordance with such subsection. ‘‘(2) E X CEPTION.— N otwithstanding paragraph (1), the Sec- retary may allow an eligible entity to use more than 50 percent of grant funds received under this chapter for such activities, if the eligible entity demonstrates that the eligible entity has another means of providing the students with the financial assistance described in this section and describes such means in the application submitted under section 404C. ‘‘(c) NOTI F ICATION OF ELIGIBILITY.—Each eligible entity pro- viding scholarships under this section shall provide information on the eligibility requirements for the scholarships to all partici- pating students upon the students’ entry into the programs assisted under this chapter.’’; (4) in subsection (d) (as redesignated by paragraph (2)), by striking ‘‘the lesser of’’ and all that follows through the period at the end of paragraph (2) of such subsection (d) and inserting ‘‘the minimum Federal Pell G rant award under sec- tion 401 for such award year.’’;
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