; and (B) disbursing subgrant funds to eligible students. (2) Applications (A) In general To be eligible for a subgrant under this title, an eligible student shall submit to the State an application in such form, at such time, and containing such information as the State determines appropriate. (B) Appeal If an application for an emergency aid subgrant submitted by an eligible student under subparagraph (A) is denied by the State, such student may appeal such denial in a manner to be determined by the State. (3) Notification Upon receipt of an application from an eligible student under paragraph (2), the State shall notify such student of such receipt in a manner to be determined by the State. (4) Funds (A) Subgrant amounts (i) Eligible students without dependents With respect to an academic year, a subgrant awarded to an eligible student that does not have a dependent may not exceed $1,500. (ii) Eligible students with dependents With respect to an academic year, a subgrant awarded to an eligible student with a dependent may not exceed $2,500. (B) Disbursement of funds A State shall disburse funds to eligible students in a timely manner, as determined by the State. (C) Federal taxes A subgrant under this title may not be considered income for purposes of the Internal Revenue Code of 1986. 304. Data collection A State that awards subgrants under this title shall collect the following data: (1) With respect to each public institution of higher education— (A) the number and percentage of students receiving emergency aid; and (B) the average grant amount for each student. (2) With respect to each semester or quarter at a public institution of higher education— (A) rate of retention