90 STAT. 2150 20 USC 1070b, 1087a, 1088.
Application.
PUBLIC LAW 94-482—OCT. 12, 1976 "(d) From the funds otherwise allotted to the States for subpart 2 of part A, and for part C and part E of this title for States which have obtained a grant under this section, the Commissioner shall transfer to such State an amount equal to.05 per centum of such funds or $10,000, whichever is less, and shall reduce such State allotment by that amount. "(e) A State which desires to obtain a grant under this section for any fiscal year shall submit an application therefor through or by the State agency administering its program of student grants, or if such agency does not exist, through or by any agency or organization designated for such purpose by the State, at such time or times, and containing such information as may be required by such regulations as the Commissioner may prescribe for the purpose of enabling the Commissioner to disburse the funds.". ELIGIBILITY FOR STUDENT ASSISTANCE
20 USC 1088f.
SEC. 132. Section 497 of the Act is amended by adding at the end thereof the following new subsection: "(e) Any student assistance received by a student under this title shall entitle the student receiving it to payments only if— "(1) that student is maintaining satisfactory progress in the course of study he is pursuing, according to the standards and practices of the institution at which the student is in attendance, and "(2) that student does not owe a refund on grants previously received at such institution under this title, or is not in default on any loan from a student loan fund at such institution provided for in part E, or a loan made, insured, or guaranteed by the Commissioner under this title for attendance at such institution.". FISCAL RESPONSIBILITY
SEC. 133. (a) Title IV of the Act is further amended by adding after section 497 the following new sections: "FISCAL ELIGIBILITY OF INSTITUTIONS
Regulations. "SEC. 497A. (a) Notwithstanding any other provisions of this title, 20 USC 1088f-l. or of section 434(c) of the General Education Provisions Act, the Ante, p. 2129. Commissioner is authorized to prescribe such regulations as may be necessary to provide for— "(1) a fiscal audit of an eligible institution with regard to any funds obtained by it under this title or obtained from a student who has a loan insured or guaranteed by the Commissioner under this title; "(2) the establishment of reasonable standards of financial responsibility and appropriate institutional capability for the administration by an eligible institution of a program of student financial aid under this title; "(3) the establishment by each eligible institution under part B responsible for furnishing to the lender the statement required Ante, p. 2108. by section 428(a)(2)(A)(i), o f policies and procedures by which the latest known address and enrollment status of any student who has had a loan insured under this part and who has either formally terminated his enrollment, or failed to re-enroll on at least a half-time basis, at such institution, shall be furnished either to the holder (or if unknown, the insurer) of the note, not later than sixty days after such termination or failure to re-enroll; and
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