; and (B) by striking equal to or greater than the Federal funds and inserting equal to 50 percent of the Federal funds ; and (2) by inserting after subparagraph (C) the following: (D) Scholarships An eligible institution that uses grant funds provided under this section to establish or increase an endowment fund may use the interest proceeds from such endowment to provide scholarships to students for the purposes of attending such institution. . (f) Technical correction to section 318 Section 318(i) of the Higher Education Act of 1965 ( 20 U.S.C. 1059e ) is amended— (1) in the subsection heading, by striking Special Rule on Eligibility and inserting Special Rules ; (2) by striking No Predominantly and inserting the following: (1) Eligibility No Predominantly