(a) Waiver requirements; need-based assistance students The Secretary may waive the requirements set forth in section
1058 (b)(1)(A) of this title in the case of an institution
(1) which is extensively subsidized by the State in which it is located and charges low or no tuition;
(2) which serves a substantial number of low-income students as a percentage of its total
student population;
(3) which is contributing substantially to increasing higher education opportunities for educationally disadvantaged, underrepresented, or minority students, who are low-income individuals;
(4) which is substantially increasing higher educational opportunities for individuals in rural or other isolated areas which are unserved by postsecondary institutions;
(5) located on or near an Indian reservation or a substantial population of Indians, if the Secretary determines that the waiver will substantially increase higher education opportunities appropriate to the needs of American Indians;
(6) that is a tribally controlled college or university as defined in section
1801 of title
25; or
(7) wherever located, if the Secretary determines that the waiver will substantially increase higher education opportunities appropriate to the needs of Black Americans, Hispanic Americans, Native Americans, Asian Americans, or Pacific Islanders, including Native Hawaiians.
(b) Waiver determinations; expenditures
(1) The Secretary may waive the requirements set forth in section
1058 (b)(1)(B) of this title if the Secretary determines, based on persuasive evidence submitted by the institution, that the institutions failure to meet that criterion is due to factors which, when used in the determination of compliance with such criterion, distort such determination, and that the institutions designation as an eligible institution under part A of this subchapter is otherwise consistent with the purposes of such parts.
(2) Omitted.
(3) The Secretary may waive the requirement set forth in section
1058 (b)(1)(E)2 of this title in the case of an institution located on or near an Indian reservation or a substantial population of Indians, if the Secretary determines that the waiver will substantially increase higher education opportunities appropriate to the needs of American Indians.
