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(1) AUTHORITY- The Secretary is authorized to award fellowships to Indian students to enable such students to study in graduate and professional programs at institutions of higher education.

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(2) REQUIREMENTS– The fellowships described in paragraph (1) shall be awarded to Indian students to enable such students to pursue a course of study—

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(A) of not more than 4 academic years; and

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(B) that leads—

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(i) toward a postbaccalaureate degree in medicine, clinical psychology, psychology, law, education, or a related field; or

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(ii) to an undergraduate or graduate degree in engineering, business administration, natural resources, or a related field.

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(b) STIPENDS– The Secretary shall pay to Indian students awarded fellowships under subsection (a) such stipends (including allowances for subsistence of such students and dependents of such students) as the Secretary determines to be consistent with prevailing practices under comparable federally supported programs.

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(c) PAYMENTS TO INSTITUTIONS IN LIEU OF TUITION- The Secretary shall pay to the institution of higher education at which such a fellowship recipient is pursuing a course of study, in lieu of tuition charged to such recipient, such amounts as the Secretary may determine to be necessary to cover the cost of education provided to such recipient.

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(1) IN GENERAL– If a fellowship awarded under subsection (a) is vacated prior to the end of the period for which the fellowship is awarded, the Secretary may award an additional fellowship for the unexpired portion of the period of the first fellowship.

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(2) WRITTEN NOTICE– Not later than 45 days before the commencement of an academic term, the Secretary shall provide to each individual who is awarded a fellowship under subsection (a) for such academic term written notice of

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(A) the amount of the funding for the fellowship; and

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(B) any stipends or other payments that will be made under this section to, or for the benefit of, the individual for the academic term.

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(3) PRIORITY- Not more than 10 percent of the fellowships awarded under subsection (a) shall be awarded, on a priority basis, to persons receiving training in guidance counseling with a specialty in the area of alcohol and substance abuse counseling and education.

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(1) IN GENERAL– The Secretary shall require, by regulation, that an individual who receives financial assistance under this section

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(A) perform work

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(i) related to the training for which the individual receives the assistance under this section; and

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(ii) that benefits Indian people; or

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(B) repay all or a prorated portion of such assistance.

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(2) REPORTING- The Secretary shall establish, by regulation, a reporting procedure under which a recipient of assistance under this section shall, not later than 12 months after the date of completion of the training, and periodically thereafter, provide information concerning the compliance of such recipient with the work requirement described in paragraph (1).

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(f) ADMINISTRATION OF FELLOWSHIPS– The Secretary may administer the fellowships authorized under this section through a grant to, or contract or cooperative agreement with, an Indian organization with demonstrated qualifications to administer all facets of the program assisted under this section.