Institutional Eligibility Under the Higher Education Act of 1965, as Amended (HEA); Final regulations, 34 CFR Parts 600, 649, 668, 674, 675, 676, 682, 685, 690 and 693 [OPE]

FR Doc 04-5821
[Federal Register: March 16, 2004 (Volume 69, Number 51)]
[Rules and Regulations]               
[Page 12274-12277]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16mr04-7]                         
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DEPARTMENT OF EDUCATION

34 CFR Parts 600, 649, 668, 674, 675, 676, 682, 685, 690 and 693

RIN 1840-AC47

 
Institutional Eligibility Under the Higher Education Act of 1965, 
as Amended (HEA); Patricia Roberts Harris Fellowship Program; Student 
Assistance General Provisions; Federal Perkins Loan Program; Federal 
Work-Study Programs; Federal Supplemental Educational Opportunity Grant 
Program; Federal Family Education Loan Program; William D. Ford Federal 
Direct Loan Program; Federal Pell Grant Program; and National Early 
Intervention Scholarship and Partnership Program

AGENCY: Department of Education.

ACTION: Final regulations.

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SUMMARY: The Secretary amends Sec. Sec.  600.55 and 600.56 of the 
Institutional Eligibility regulations to effectuate Pub. L. 108-98, a 
recent enactment with a retroactive effective date of October 1, 1998.
    The Secretary also is amending the Institutional Eligibility, 
Patricia Roberts Harris Fellowship Program, Student Assistance General 
Provisions, Federal Perkins Loan Program, Federal Work-Study Programs, 
Federal Supplemental Educational Opportunity Grant Program, Federal 
Family Education Loan (FFEL) Program, William D. Ford Federal Direct 
Loan Program, Federal Pell Grant Program, and National Early 
Intervention Scholarship and Partnership (NEISP) Program regulations. 
These technical revisions are necessary to correct cross-references, 
delete references to programs that are no longer funded, and make a 
number of nomenclature changes that provide the correct names of 
various Title IV, HEA programs.

EFFECTIVE DATE: The amendments to Sec. Sec.  600.55 and 600.56 of the 
Institutional Eligibility regulations are effective retroactively to 
October 1, 1998. All of the other amendments take effect April 15, 
2004.

FOR FURTHER INFORMATION CONTACT: Lorraine Kennedy, U.S. Department of 
Education, 1990 K Street, NW., room 8018, Washington, DC 20006. 
Telephone: (202) 502-7762. Jackie Butler, U.S. Department of Education, 
1990 K Street, NW., room 8062, Washington, DC 20006. Telephone: (202) 
502-7890. If you use a telecommunications device for the deaf (TDD), 
you may call the Federal Information Relay Service (FIRS) at 1-800-877-
8339.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed under FOR FURTHER 
INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION: The regulations governing Institutional 
Eligibility under the Higher Education Act of 1965, as amended, 34 CFR 
part 600; Patricia Roberts Harris Fellowship Program, 34 CFR part 649; 
the Student Assistance General Provisions regulations, 34 CFR part 668; 
Federal Perkins Loan Program, 34 CFR part 674; Federal Work-Study 
Programs, 34 CFR part 675; Federal Supplemental Educational Opportunity 
Grant Program, 34 CFR part 676; Federal Family Education Loan Program, 
34 CFR part 682; William D. Ford Federal Direct Loan Program, 34 CFR 
part 685; Federal Pell Grant Program, 34 CFR part 690; and National 
Early Intervention Scholarship and Partnership Program, 34 CFR part 693 
are amended to provide certain clarifications, to correct errors and 
omissions, and to remove references to Title IV, HEA programs that are 
no longer authorized or funded.
    Sections 600.55 and 600.56 of the Institutional Eligibility 
regulations are revised to conform with newly-enacted Public Law 108-
98. That legislation corrected technical errors in the Higher Education 
Amendments of 1998 by removing inadvertent barriers to institutional 
eligibility that applied to public and non-profit foreign veterinary 
schools, as well as to Canadian medical schools. Consistent with the 
legislation, the conforming changes to the regulations are effective 
retroactively to October 1, 1998.
    Section 600.57(a) of the Institutional Eligibility regulations has 
been amended to establish the maximum duration of a program 
participation agreement for foreign institutions as six years from the 
date of the Secretary's certification determination. This change 
conforms the regulations to the Higher Education Amendments of 1998, 
Pub. L. 105-244, which extended the maximum period of time that an 
institution may be certified to participate in the Title IV, HEA 
programs from four to six years.
    These regulations remove part 649 from 34 CFR because the Patricia 
Roberts Harris Fellowship Program is no longer authorized by the HEA.
    The expected family contribution (EFC) definition has been removed 
from the individual program regulations for the Federal Perkins Loan 
Program, Federal Work-Study Programs, Federal Supplemental Educational 
Opportunity Grant Program, Federal Family Education Loan Program, 
William D. Ford Federal Direct Loan Program, and Federal Pell Grant 
Program and is now listed instead in the Student Assistance General 
Provisions under the General Definitions in Sec.  668.2. This change 
was made to centralize the definitions used in the Title IV, HEA 
program regulations.
    We have removed the reference to the ALAS Program in the definition 
of Federal Supplemental Loans for Students in Sec.  668.2 because the 
ALAS program is no longer authorized by the HEA.
    The definition of parent in Sec.  668.2 has been changed by 
deleting the discussion of ``legal guardian'', to conform with the 
definition of parent in Part F of the Higher Education Act of 1965, as 
amended.
    The reference to the National Early Intervention Scholarship and 
Partnership Program (NEISP) in Sec.  668.26(b)(5) has been removed 
because the program is no longer authorized by the HEA.
    Section 668.26 has been amended by removing paragraphs (d)(2)(iv) 
and (e)(3) and redesignating paragraph (d)(2)(v) as (d)(2)(iv). Section 
668.26(d)(2) lists the circumstances under which an institution whose 
participation in the Title IV programs has ended may disburse an FFEL 
Program loan. The removed paragraph required that the loan commitment 
be made prior to the loss of participation. However, this is redundant 
in light of the requirement that the first disbursement of the loan be 
made prior to the end of participation. The first disbursement of a 
loan cannot be made unless a commitment for the loan has been made. 
This change makes the FFEL requirement similar to the corresponding 
requirement for Direct Loan Program loans in Sec.  668.26(d)(3)(iii).
    These regulations make changes to the Federal Pell Grant Program 
regulations to move the definition of EFC to the

[[Page 12275]]

Student Assistance General Provisions regulations, to reflect the 
changes in transmitting student records because the Secretary no longer 
accepts magnetic records, to clarify the institutional participation 
requirements to state that a valid ISIR or valid SAR is needed to 
determine student eligibility for Title IV assistance, to correct 
references, and to remove references that are no longer applicable.
    These regulations remove part 693 from 34 CFR because the National 
Early Intervention Scholarship and Partnership (NEISP) Program is no 
longer authorized by the HEA.

Regulatory Flexibility Act Certification

    The Secretary certifies that these regulations will not have a 
significant economic impact on a substantial number of small entities. 
The small entities that are affected by these regulations are small 
institutions of higher education. These regulations contain technical 
amendments designed to clarify and correct current regulations. The 
changes will not have a significant economic impact on the institutions 
affected.

Paperwork Reduction Act of 1995

    These regulations do not contain any information collection 
requirements.

Assessment of Educational Impact

    Based on our review, we have determined that these final 
regulations do not require transmission of information that any other 
agency or authority of the United States gathers or makes available.

Waiver of Proposed Rulemaking and Negotiated Rulemaking

    Under the Administrative Procedure Act (5 U.S.C. section 553) the 
Department generally offers interested parties the opportunity to 
comment on proposed regulations. However, these regulations merely 
reflect statutory changes, make certain technical changes and remove 
obsolete regulatory provisions. These changes do not establish any new 
substantive rules. Furthermore, the changes to Sec. Sec.  600.55 and 
600.56 effectuate a recent technical amendment to the HEA. That 
amendment, in Pub. L. 108-98, has a retroactive effective date and has 
no adverse effect on substantive rights or obligations of individuals 
or institutions.
    For these reasons, the Secretary has determined that proposed 
regulations are unnecessary and contrary to the public interest. For 
the same reasons, the Secretary has determined, under section 492(b)(2) 
of the Higher Education Act of 1965, as amended, that the changes 
should not be subject to negotiated rulemaking.

Electronic Access to This Document

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    Note: The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
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Regulations is available on GPO Access at: http://www.gpoaccess.gov/nara/index.html
.


List of Subjects in 34 CFR Parts 600, 649, 668, 674, 675, 676, 682, 
685, 690, and 693

    Administrative practice and procedure, Colleges and universities, 
Consumer protection, Education, Grant programs-education, Loan 
programs-education, Reporting, Vocational education and recordkeeping 
requirements, Student aid.

    Dated: March 10, 2004.
Sally L. Stroup,
Assistant Secretary, Office of Postsecondary Education.

0
The Secretary amends parts 600, 649, 668, 674, 675, 676, 682, 685, 690 
and 693 of the Code of Federal Regulations as follows:

PART 600--INSTITUTIONAL ELIGIBILITY UNDER THE HIGHER EDUCATION ACT 
OF 1965, AS AMENDED

0
1. The authority citation for part 600 continues to read as follows:

    Authority: 20 U.S.C. 1001, 1002, 1003, 1088, 1091, 1094, 1099b, 
and 1099(c), unless otherwise noted.


0
2. The authority citations for Sec. Sec.  600.55 and 600.56 are revised 
to read as follows:

(Authority: 20 U.S.C. 1002, 1082)

Sec.  600.55  [Amended]

0
3. Section 600.55(a)(5)(i)(B) is amended by removing the word ``At'' 
and adding, in its place, ``For a foreign graduate medical school 
outside of Canada, at''.


Sec.  600.56  [Amended]

0
4. Section 600.56 is amended by:
0
A. In paragraph (a)(4), removing ``Either--''
0
B. Removing paragraph (a)(4)(i).
0
C. Redesignating paragraph (a)(4)(ii) as (a)(4).
0
D. In redesignated paragraph (a)(4), removing the words ``The 
veterinary'' and adding, in their place, ``For a veterinary school that 
is neither public nor private non-profit, the''.


Sec.  600.57  [Amended]

0
5. Section 600.57(a) is amended by removing ``four'' and adding, in its 
place, ``six''.

PART 649--PATRICIA ROBERTS HARRIS FELLOWSHIP PROGRAM

0
6. Part 649 is removed and reserved.

PART 668--STUDENT ASSISTANCE GENERAL PROVISIONS

0
7. The authority citation for part 668 continues to read as follows:

    Authority: 20 U.S.C. 1001, 1002, 1003, 1085, 1091, 1091b, 1092, 
1094, 1099c, and 1099c-1, unless otherwise noted.


Sec.  668.2  [Amended]

0
8. Section 668.2(b) is amended by adding ``(Authority: 20 U.S.C. 
1088)'' immediately following the definition of ``Enrolled'', revising 
the definitions of ``Federal Supplemental Loans for Students (Federal 
SLS) Program'' and ``Parent'', and by adding, in alphabetical order, a 
new definition of ``Expected Family Contribution''.
0
The revisions and addition read as follows:


Sec.  668.  Definitions.

* * * * *
    (b) * * *
    Expected family contribution (EFC): The amount, as determined under 
title IV, part F of the HEA, an applicant and his or her spouse and 
family are expected to contribute toward the applicant's cost of 
attendance.
* * * * *
    Federal Supplemental Loans for Students (Federal SLS) Program: The 
loan program authorized by Title IV-B, section 428A of the HEA, as in 
effect for periods of enrollment that began before July 1, 1994. The 
Federal SLS Program encourages the making of loans to graduate, 
professional, independent undergraduate, and certain dependent 
undergraduate students.

(Authority: 20 U.S.C. 1078-1)

* * * * *
    Parent: A student's biological or adoptive mother or father or the 
student's stepparent, if the biological

[[Page 12276]]

parent or adoptive mother or father has remarried at the time of 
application.
* * * * *


Sec.  668.26  [Amended]

0
9. Section 668.26 is amended by:
0
A. In paragraph (b)(5), removing ``NEISP or''.
0
B. Revising paragraph (d)(2)(iii);
0
C. Removing paragraph (d)(2)(iv); and
0
D. Redesignating paragraph (d)(2)(v) as paragraph (d)(2)(iv).
0
E. In paragraph (e)(1), adding the word ``and'' after the semicolon.
0
F. In paragraph (e)(2), removing ``; and'' and adding, in its place, 
``.''.
0
G. Removing paragraph (e)(3).
0
The revision reads as follows:


668.26  End of an institution's participation in the Title IV, HEA 
programs.

* * * * *
    (d) * * *
    (2) * * *
    (iii) The loan was made for attendance during that period of 
enrollment.
* * * * *

Sec.  668.40  [Amended]

0
10. Section 668.40 is transferred from subpart D to subpart C.


Sec.  668.44  [Amended]

0
11. Section 668.44(a)(1) is amended by removing ``Sec. Sec.  668.43 and 
668.44'' and adding, in its place, ``Sec. Sec.  668.42, 668.43, 668.45 
and 668.46''.


Sec.  668.48  [Amended]

0
12. Section 668.48(d) is amended by removing ``Sec.  668.46(e)'' and 
adding, in its place, ``Sec.  668.45(e)''.


Sec.  668.52  [Amended]

0
13. Section 668.52 is amended by removing the definition of ``Expected 
family contribution''.


Sec.  668.55  [Amended]

0
14. Section 668.55(d)(1) is amended by removing ``ther'' and adding, in 
its place, ``the''.


Sec.  668.90  [Amended]

0
15. The heading for Sec.  668.90 is amended by removing ``--Appeals''.


Sec.  668.167  [Amended]

0
16. Section 668.167(d)(3)(ii) is amended by removing ``Sec.  668.164'' 
and adding, in its place, ``Sec.  668.163''.


Sec.  668.198  [Amended]

0
17. Section 668.198 is amended by:
0
A. In the introductory text to paragraph (b), removing '', 2000, or 
2001,'' and adding, in its place, `` through 2003''.
0
B. In paragraph (c)(1), by removing ``2002'' and adding, in its place, 
``2004''.
0
C. In paragraph (f)(1), by removing '', 2000, or 2001'' and adding, in 
its place, `` through 2003''.

PART 674--FEDERAL PERKINS LOAN PROGRAM

0
18. The authority citation for part 674 continues to read as follows:

    Authority: 20 U.S.C. 1087aa-1087hh and 20 U.S.C. 421-429, unless 
otherwise noted.


Sec.  674.2  [Amended]

0
19. Section 674.2 is amended by:
0
A. In paragraph (a), adding, in alphabetical order, ``Expected family 
contribution (EFC)''.
0
B. In paragraph (b), removing the definition of ``Expected family 
contribution''.

PART 675--FEDERAL WORK-STUDY PROGRAMS

0
20. The authority citation for part 675 continues to read as follows:

    Authority: 42 U.S.C. 2751-2756b, unless otherwise noted.


Sec.  675.2  [Amended]

0
21. Section 675.2 is amended by:
0
A. In paragraph (a), adding, in alphabetical order, ``Expected family 
contribution (EFC)''.
0
B. In paragraph (b), removing the definition of ``Expected family 
contribution''.

PART 676--FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT 
PROGRAM

0
22. The authority citation for part 676 continues to read as follows:

    Authority: 20 U.S.C. 1070b-1070b-3, unless otherwise noted.


Sec.  676.2  [Amended]

0
23. Section 676.2 is amended by:
0
A. In paragraph (a), adding, in alphabetical order, ``Expected family 
contribution (EFC)''.
0
B. In paragraph (b), removing the definition of ``Expected family 
contribution''.

PART 682--FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM

0
24. The authority citation for part 682 continues to read as follows:

    Authority: 20 U.S.C. 1071 to 1087-2, unless otherwise noted.


Sec.  682.200  [Amended]

0
25. Section 682.200 is amended by:
0
A. In paragraph (a)(1), adding, in alphabetical order, ``Expected 
family contribution''.
0
B. In paragraph (b), removing the definition of ``Expected family 
contribution''.

PART 685--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

0
26. The authority citation for part 685 continues to read as follows:

    Authority: 20 U.S.C. 1087a et seq., unless otherwise noted.


Sec.  685.102  [Amended]

0
27. Section 685.102 is amended by:
0
A. In paragraph (a)(1), adding, in alphabetical order, ``Expected 
family contribution''.
0
B. In paragraph (a)(3), removing the words ``Expected family 
contribution''.

PART 690--FEDERAL PELL GRANT PROGRAM

0
28. The authority citation for part 690 continues to read as follows:

    Authority: 20 U.S.C. 1070a, unless otherwise noted.


Sec.  690.2  [Amended]

0
29. Section 690.2 is amended by:
0
A. In paragraph (a), removing ``definitions of the following terms used 
in this part are set forth in subpart A of the Student Assistance 
General Provisions, 34 CFR part 668'' and adding, in its place, 
``following definitions are contained in the regulations for 
Institutional Eligibility under the Higher Education Act of 1965, as 
amended, 34 CFR part 600'' and removing the term ``payment period'' 
from the alphabetical list of terms.
0
B. In paragraph (b), removing ``Definitions of the following terms used 
in this part are described'' and adding, in its place, ``The following 
definitions are contained'', removing the term ``eligible student'' and 
adding, in alphabetical order, the terms ``Expected family 
contribution'', ``Payment period'', and ``Student eligibility''.
0
C. In paragraph (c), removing the ``Expected family contribution'' 
definition.
0
D. In paragraph (c), in the ``Institutional Student Information Record 
(ISIR)'' definition, removing ``A paper document or a computer-
generated'' and adding, in its place ``An'', removing ``central 
processor'' and adding, in its place, ``Secretary'', and removing 
``calculated by the central processor'' in paragraph (3).
0
E. In paragraph (c), in the ``Payment Data'' definition, removing ``or 
magnetic'' and ``a student's expected family contribution, cost of 
attendance, enrollment status, and''.
0
F. In paragraph (c), in the ``Payment Schedule'' definition, paragraph 
(1), removing ``expected family contribution, as determined in 
accordance with part F of title IV of the HEA'' and adding, in its 
place, ``EFC''.

[[Page 12277]]

0
G. In paragraph (c), in the ``Student Aid Report (SAR)'' definition, by 
adding ``by the Secretary'' immediately after ``applicant''.
0
H. In paragraph (c), in the ``Three-quarter-time student'' definition, 
adding ``as defined in 34 CFR part 668'' at the end of the paragraph.


Sec.  690.7  [Amended]

0
30. Section 690.7(b) is amended by adding '', or for whom the 
institution obtained a valid ISIR,'' immediately after ``to the 
institution''.


Sec.  690.61  [Amended]

0
31. Section 690.61 is amended by:
0
A. In paragraph (a)(1), adding ``and electronically transmit Federal 
Pell Grant disbursement data to the Secretary for that student'' 
immediately after ``disbursement''.
0
B. Removing paragraphs (a)(1)(ii)(A) and (a)(1)(ii)(B).


Sec.  690.63  [Amended]

    32. Section 690.63(g)(2) is amended by removing ``668.2 and''.


Sec.  690.78  [Amended]

0
33. Section 690.78(c)(5) is amended by removing ``(d)(4)'' and adding, 
in its place, ``(c)(4)''.

PART 693--NATIONAL EARLY INTERVENTION SCHOLARSHIP AND PARTNERSHIP 
PROGRAM

0
34. Part 693 is removed and reserved.

[FR Doc. 04-5821 Filed 3-15-04; 8:45 am]

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