; (iv) an institution of higher education; (v) a nonprofit organization; (vi) an entity with demonstrated experience in educational savings or in assisting low-income students to prepare for, and attend, an institution of higher education; or (vii) a consortium of 2 or more of the entities described in clauses (i) through (vi). (F) ESEA definitions The terms local educational agency , parent , and State educational agency have the meanings given the terms in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ) and the term charter school has the meaning given the term in section 4310 of such Act ( 20 U.S.C. 7221i ). (G) Institution of higher education The term institution of higher education has the meaning given the term in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) ). (H) Low-income student The term low-income student means a student who is eligible to receive a free or reduced price lunch under the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1751 et seq.). (2) Grant program (A) Program authorized The Secretary of Education is authorized to award grants, on a competitive basis, to eligible entities to enable such eligible entities to establish and administer American Dream Accounts for a group of low-income students. (B) Reservation From the amount made available each fiscal year to carry out this section under subsection (c), the Secretary of Education shall reserve not more than 5 percent of such amount to carry out the evaluation activities described in paragraph (5)(A). (C) Duration A grant awarded under this subsection shall be for a period of not more than 3 years. The Secretary of Education may extend such grant for an additional 2-year period if the Secretary of Education determines that the eligible entity has demonstrated significant progress, based on the factors described in paragraph (3)(B)(xi). (3) Applications