[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR668.195]

[Page 561]
 
                           TITLE 34--EDUCATION
 
                         DEPARTMENT OF EDUCATION
 
PART 668--STUDENT ASSISTANCE GENERAL PROVISIONS--Table of Contents
 
                     Subpart M--Cohort Default Rates
 
Sec. 668.195  Participation rate index appeals.

    (a) Eligibility. (1) You may appeal a notice of a loss of 
eligibility under Sec. 668.187(a)(1), based on one cohort default rate 
over 40 percent, if your participation rate index for that cohort's 
fiscal year is equal to or less than 0.06015.
    (2) You may appeal a notice of a loss of eligibility under 
Sec. 668.187(a)(2), based on three cohort default rates of 25 percent or 
greater, if your participation rate index is equal to or less than 
0.0375 for any of those three cohorts' fiscal years.
    (b) Calculating your participation rate index. (1) Except as 
provided in paragraph (b)(2) of this section, your participation rate 
index for a fiscal year is determined by multiplying your cohort default 
rate for that fiscal year by the percentage that is derived by dividing-
-
    (i) The number of students who received an FFELP or a Direct Loan 
Program loan to attend your institution during a period of enrollment, 
as defined in 34 CFR 682.200 or 685.102, that overlaps any part of a 12-
month period that ended during the 6 months immediately preceding the 
cohort's fiscal year, by
    (ii) The number of regular students who were enrolled at your 
institution on at least a half-time basis during any part of the same 
12-month period.
    (2) If your cohort default rate for a fiscal year is calculated as 
an average rate under Sec. 668.183(d)(2), you may calculate your 
participation rate index for that fiscal year using either that average 
rate or the cohort default rate that would be calculated for the fiscal 
year alone using the method described in Sec. 668.183(d)(1).
    (c) Deadline for submitting an appeal. You must send us your appeal 
under this section, including all supporting documentation, within 30 
days after you receive the notice of your loss of eligibility.
    (d) Determination. (1) You do not lose eligibility under 
Sec. 668.187 if we determine that you meet the requirements for a 
participation rate index appeal.
    (2) If we determine that your participation rate index for a fiscal 
year is equal to or less than 0.0375, under paragraph (d)(1) of this 
section, we also excuse you from any subsequent loss of eligibility 
under Sec. 668.187(a)(2) that would be based on the official cohort 
default rate for that fiscal year.

(Approved by the Office of Management and Budget under control number 
1845-0022)

(Authority: 20 U.S.C. 1082, 1085, 1094, 1099c)