34 CFR §657.31

1. (a)
   1. (1)An institution shall award a stipend to fellowship recipients.
   2. (2)Each fellowship includes an institutional payment and a subsistence allowance to be determined by the Secretary.
   3. (3)If the institutional payment determined by the Secretary is greater than the tuition and fees charged by the institution, the institutional payment portion of the fellowship is limited to actual tuition and fees. The difference between actual tuition and fees and the Secretary's institutional payment shall be used to fund additional fellowships to the extent that funds are available for a full subsistence allowance.
   4. (4)If permitted by the Secretary, a stipend awarded to a graduate level recipient may include allowances for dependents and travel for research and study in the United States and abroad.
   5. (5)A stipend awarded to an undergraduate level recipient may include an allowance for educational programs in the United States or educational programs abroad that—
      1. (i)Are closely linked to the overall goals of the recipient's course of study; and
      2. (ii)Have the purpose of promoting foreign language fluency and knowledge of foreign cultures.
2. (b)The Secretary announces in an application notice published in the Federal Register—
   1. (1)The amounts of the subsistence allowance and the institutional payment for an academic year and the subsistence allowance and the institutional payment for a summer session;
   2. (2)Whether travel and dependents' allowances will be permitted; and
   3. (3)The amount of travel and dependents' allowances.