((a)) ** Educational and general expenditures** For the purpose of this part, the term “educational and general expenditures” means the total amount expended by an institution of higher education for instruction, research, public service, academic support (including library expenditures), student services, institutional support, scholarships and fellowships, operation and maintenance expenditures for the physical plant, and any mandatory transfers which the institution is required to pay by law.

((b)) ** Eligible institution** For the purpose of this part, the term “eligible institution” means—

((1)) an institution of higher education—

((A)) which has an enrollment of needy students as required by subsection (d);

((B)) except as provided in , the average educational and general expenditures of which are low, per full-time equivalent undergraduate student, in comparison with the average educational and general expenditures per full-time equivalent undergraduate student of institutions that offer similar instruction;

((C)) which is—

((i)) legally authorized to provide, and provides within the State, an educational program for which such institution awards a bachelor’s degree;

((ii)) a junior or community college; or

((iii)) the College of the Marshall Islands, the College of Micronesia/Federated States of Micronesia, and Palau Community College;

((D)) which is accredited by a nationally recognized accrediting agency or association determined by the Secretary to be reliable authority as to the quality of training offered or which is, according to such an agency or association, making reasonable progress toward accreditation;

((E)) which meets such other requirements as the Secretary may prescribe; and

((F)) located in a State; and

((2)) any branch of any institution of higher education described under paragraph (1) which by itself satisfies the requirements contained in subparagraphs (A) and (B) of such paragraph.

((c)) ** Endowment fund** For the purpose of this part, the term “endowment fund” means a fund that—

((1)) is established by State law, by an institution of higher education, or by a foundation that is exempt from Federal income taxation;

((2)) is maintained for the purpose of generating income for the support of the institution; and

((3)) does not include real estate.

((d)) ** Enrollment of needy students** Except as provided in , for the purpose of this part, the term “enrollment of needy students” means an enrollment at an institution of higher education or a junior or community college which includes—

((1)) at least 50 percent of the degree students so enrolled who are receiving need-based assistance under subchapter IV of this chapter in the second fiscal year preceding the fiscal year for which the determination is being made (other than loans for which an interest subsidy is paid pursuant to ), or

((2)) a substantial percentage of students receiving Pell Grants in the second fiscal year preceding the fiscal year for which determination is being made, in comparison with the percentage of students receiving Pell Grants at all such institutions in the second fiscal year preceding the fiscal year for which the determination is made, unless the requirement of this paragraph is waived under .

((e)) ** Full-time equivalent students** For the purpose of this part, the term “full-time equivalent students” means the sum of the number of students enrolled full time at an institution, plus the full-time equivalent of the number of students enrolled part time (determined on the basis of the quotient of the sum of the credit hours of all part-time students divided by 12) at such institution.

((f)) ** Junior or community college** For the purpose of this part, the term “junior or community college” means an institution of higher education—

((1)) that admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located and who have the ability to benefit from the training offered by the institution;

((2)) that does not provide an educational program for which it awards a bachelor’s degree (or an equivalent degree); and

((3)) that—

((A)) provides an educational program of not less than 2 years that is acceptable for full credit toward such a degree, or

((B)) offers a 2-year program in engineering, mathematics, or the physical or biological sciences, designed to prepare a student to work as a technician or at the semiprofessional level in engineering, scientific, or other technological fields requiring the understanding and application of basic engineering, scientific, or mathematical principles of knowledge.

((g)) ** Low-income individual** For the purpose of this part, the term “low-income individual” means an individual from a family whose taxable income for the preceding year did not exceed 150 percent of an amount equal to the poverty level determined by using criteria of poverty established by the Bureau of the Census.

((h)) ** Historically black college or university** For the purposes of this section, no historically black college or university which is eligible for and receives funds under part B of this subchapter is eligible for or may receive funds under this part.