Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Special Leveraging Educational Assistance Partnership Program (LEAP). (Comments Due September 11, 2000).

FR part
VI
Attachments:
PublicationDate: 7/27/2000
FRPart: VI
RegPartsAffected: Citation : (R)685.100
PageNumbers: 46323-46329
Summary: Special Leveraging Educational Assistance Partnership Program (LEAP). (Comments Due September 11, 2000).
CommentDueDate: 9/11/2000

  
This file contains this Federal Register in Portable Document Format (PDF). It can be viewed with version 3.0 or greater of the free Adobe Acrobat Reader software. Scroll down to see a text version of this document.]]

[

[Federal Register: July 27, 2000 (Volume 65, Number 145)]
[Proposed Rules]
[Page 46323-46329]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jy00-35]


[[Page 46323]]

-----------------------------------------------------------------------

Part VI





Department of Education





-----------------------------------------------------------------------



34 CFR Part 682



Special Leveraging Educational Assistance Partnership Program; Proposed
Rule


[[Page 46324]]


-----------------------------------------------------------------------

DEPARTMENT OF EDUCATION

34 CFR Part 692

RIN 1845-AA18


Special Leveraging Educational Assistance Partnership Program

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The proposed regulations govern the new Special Leveraging
Educational Assistance Partnership (SLEAP) Program. These proposed
regulations would implement changes made to the Higher Education Act of
1965, as amended (HEA), by the Higher Education Amendments of 1998,
Public Law 105-481 (1998 Amendments).

DATES: We must receive your comments on or before September 11, 2000.

ADDRESSES: Address all comments about these proposed regulations to
Jackie Butler, U.S. Department of Education, P.O. Box 23272,
Washington, DC 20026-3272. If you prefer to send your comments through
the Internet use the following address: sleapnprm@ed.gov.
If you want to comment on the information collection requirements
you must send your comments to the Office of Management and Budget at
the address listed in the Paperwork Reduction Act section of this
preamble. You may also send a copy of these comments to the Department
representative named in this section.

FOR FURTHER INFORMATION CONTACT: Jackie Butler, U.S. Department of
Education, 400 Maryland Avenue, SW., room 3045, ROB-3, Washington, DC
20202-5447. Telephone: (202) 708-8242.
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
alternate format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION:

Invitation To Comment

We invite you to submit comments regarding these proposed
regulations. To ensure that your comments have maximum effect in
developing the final regulations, we urge you to identify clearly the
specific section or sections of the proposed regulations that each of
your comments addresses and to arrange your comments in the same order
as the proposed regulations.
We invite you to assist us in complying with the specific
requirements of Executive Order 12866 and its overall requirement of
reducing regulatory burden that might result from these proposed
regulations. Please let us know of any further opportunities we should
take to reduce potential costs or increase potential benefits while
preserving the effective and efficient administration of the program.
During and after the comment period, you may inspect all public
comments about these proposed regulations in Room 3053, ROB-3, 7th & D
Streets, SW., Washington, DC, between the hours of 8:30 a.m. and 4
p.m., Eastern time, Monday through Friday of each week except Federal
holidays.

Assistance to Individuals With Disabilities in Reviewing the
Rulemaking Record

On request, we will supply an appropriate aid, such as a reader or
print magnifier, to an individual with a disability who needs
assistance to review the comments or other documents in the public
rulemaking record for these proposed regulations. If you want to
schedule an appointment for this type of aid, you may call (202) 205-
8113 or (202) 260-9895. If you use a TDD, you may call the Federal
Information Relay Service at 1-800-877-8339.

Negotiated Rulemaking

Section 492 of the HEA requires that, before publishing any
proposed regulations for programs under Title IV of the HEA, we obtain
public involvement in the development of the proposed regulations.
After obtaining advice and recommendations, we must conduct a
negotiated rulemaking process to develop the proposed regulations. All
published proposed regulations must conform to agreements resulting
from the negotiated rulemaking process unless we reopen the negotiated
rulemaking process or provide a written explanation to the participants
in that process why we have decided to depart from the agreements.
To obtain public involvement in the development of the proposed
regulations, we held listening sessions in Washington, DC, Atlanta,
Chicago, and San Francisco. We held four half-day sessions on September
13 and 14, 1999, in Washington, DC. In addition, we held three regional
sessions; one in Atlanta on September 17, one in Chicago on September
24, and one in San Francisco on September 27, 1999. The Office of
Student Financial Assistance's Customer Service Task Force also
conducted listening sessions to obtain public involvement in the
development of our regulations.
We then published a notice in the Federal Register (64 FR 73458,
December 30, 1999) to announce our intention to establish two
negotiated rulemaking committees to draft proposed regulations
affecting Title IV of the HEA. The notice requested nominations for
participants from anyone who believed that his or her organization or
group should participate in this negotiated rulemaking process. The
notice announced that we would select participants for the process from
the nominees of those organizations or groups. The notice also
announced a tentative list of issues that each committee would
negotiate.
Once the two committees were established, they met to develop
proposed regulations over the course of several months, beginning in
February, 2000. The proposed regulations contained in this NPRM reflect
the final consensus of Negotiating Committee II (committee), which was
made up of the following members:

American Association of Collegiate Registrars and Admissions
Officers
American Association of Cosmetology Schools
American Association of State Colleges and Universities (in
coalition with American Association of Community Colleges)
American Council on Education
Association of Jesuit Colleges and Universities
Career College Association
Coalition of Publicly Traded Educational Institutions
Consumer Bankers Association
Legal Services
NAFSA: Association of International Educators
National Accrediting Commission of Cosmetology Arts and Sciences,
Inc.
National Association of College and University Business Officers
National Association of Independent Colleges and Universities
National Association of Student Financial Aid Administrators
National Association for State Student Grant and Aid Programs
National Association of State Universities and Land-Grant Colleges
National Council of Higher Education Loan Programs
National Direct Student Loan Coalition
Student Loan Servicing Alliance
The College Fund/United Negro College Fund
United States Department of Education
United States Student Association
US Public Interest Research Group

[[Page 46325]]

University Continuing Education Association

As stated in the committee protocols, consensus means that there
must be no dissent by any member in order for the committee to be
considered to have reached agreement. Consensus was reached on all of
the proposed regulations in this document.

Proposed SLEAP Regulations

The 1998 Amendments added a new section 415E to subpart 4 of Title
IV of the HEA to establish the SLEAP Program. The SLEAP Program is an
additional component of the Leveraging Educational Assistance
Partnership (LEAP) Program, which was formerly known as the State
Student Incentive Grant (SSIG) Program. The SLEAP Program was created
by Congress to provide incentive grants to States to assist them in
providing financial assistance to eligible needy postsecondary students
and services to eligible needy preschool, elementary school, and
secondary school students.
These proposed SLEAP Program regulations were developed as a result
of the new statutory provisions in the HEA that created the SLEAP
Program. All of the proposed regulations support the specific SLEAP
provisions in the HEA, including the requirement that every LEAP
statutory provision that is not inconsistent with a specific SLEAP
provision applies to the SLEAP Program. The proposed SLEAP Program
regulations are presented under the reserved subpart B in title 34 of
the Code of Federal Regulations (CFR) by amending part 692 (LEAP
Program regulations).

Significant Proposed Regulations

We discuss issues under the sections of the proposed regulations to
which they pertain. Generally, we do not address proposed regulatory
provisions that are technical or otherwise minor in effect.

Section 692.53 What Requirements Must a State Satisfy to receive SLEAP
Program Funds?

Proposed Sec. 692.53 specifies the requirements that a State must
meet to receive funds under the SLEAP Program. The proposed regulations
provide that the State must participate in the LEAP Program to be able
to receive SLEAP Program funds for a specific fiscal year and thus,
meet all the requirements under the LEAP Program. The State is required
to submit a SLEAP application in accordance with proposed Sec. 692.60
in addition to satisfying the other requirements discussed later under
that section.
Further, the proposed regulations require the State to have a SLEAP
Program that provides assistance only to eligible students as discussed
later under proposed Sec. 692.54. Under the proposed regulations, the
SLEAP Program must be administered by the same single State agency that
administers the LEAP Program. That agency would have to submit all
required SLEAP Program reports. These reports include an annual
performance report detailing how the Federal dollars and non-Federal
dollars were expended for the SLEAP Program. The proposed regulations
also require that the State's SLEAP Program not allow any student or
parent to be charged a fee that is payable to any organization, other
than the State, for the collection of information needed to determine
financial need.
A State's SLEAP Program that gives financial assistance to
postsecondary students must ensure that all public and private
nonprofit institutions of higher education and all postsecondary
vocational institutions in the State are eligible to participate in the
SLEAP Program unless the participation of certain types of institutions
is in violation of the constitution of the State or a State statute
enacted prior to October 1, 1978. If the State awards funds to
independent students or less-than-full-time students enrolled in an
institution of higher education, the proposed regulations require that
the State's SLEAP Program for postsecondary students ensure that a
reasonable portion of the State's SLEAP allocation be awarded to those
students.

Section 692.54 What Eligibility Requirements Must a Student Satisfy to
Participate in the SLEAP Program?

Proposed Sec. 692.54 specifies the eligibility requirements that
postsecondary students must meet to receive SLEAP financial assistance
and non-postsecondary students must meet to receive services under the
SLEAP Program. This proposed regulation, by referencing Sec. 692.40,
requires a postsecondary student to meet the relevant eligibility
requirements contained in Sec. 668.32 to receive SLEAP financial
assistance. These include, among other things, the requirements that
the student:
<bullet> Be a regular student;
<bullet> Not be enrolled in either an elementary or secondary
school;
<bullet> Satisfy citizenship and residency requirements;
<bullet> Maintain satisfactory progress;
<bullet> Not be in default on a title IV, HEA program loan;
<bullet> Not owe a title IV, HEA overpayment; and
<bullet> Satisfy the Selective Service registration requirements.
The proposed regulation, by referencing Sec. 692.40, requires the
postsecondary student to also demonstrate financial need according to a
system the State establishes and that we approve. This would be the
same requirement that exists under the LEAP Program for having an
approved system for determining need. To determine financial need, the
State may use one of the following systems:
<bullet> A system that uses part F of title IV of the HEA;
<bullet> The State's own need analysis system, if approved by the
Secretary; or
<bullet> A combination of these systems, if approved by the
Secretary.
To receive program services under the SLEAP Program, the proposed
regulations require a preschool, elementary school, or secondary school
student to meet the relevant citizenship and residency requirements
contained in Sec. 668.33, and demonstrate financial need as determined
by the State. The State would not need to receive our approval of the
system it uses to determine the financial need of these non-
postsecondary students under the proposed regulations.

Section 692.60 What Must a State Do To Receive an Allotment Under the
SLEAP Program?

Proposed Sec. 692.60 specifies the procedures that a State must
follow to receive a SLEAP allotment. A State is required to submit an
application for each fiscal year for which it wants to participate in
the SLEAP Program. The application must be submitted by the same single
State agency that administers the State's LEAP Program. In the
application to participate in the SLEAP Program, the State is
responsible for identifying the authorized activities, included in
Sec. 692.71, that it will fund under the SLEAP Program.
Under the proposed regulations, the State must satisfy the SLEAP
maintenance-of-effort (MOE) requirement and assure us of that fact on
its application. To satisfy the SLEAP MOE requirement, a State
receiving SLEAP funding for a fiscal year would have to expend non-
Federal funds, in total or per student, in the preceding fiscal year
for authorized activities that were not less than it expended in the
second preceding fiscal year. Note that although the statute and
regulations refer to funding in terms of a fiscal year, States receive
and award LEAP and

[[Page 46326]]

SLEAP funds operationally on an award year (July 1 through June 30)
basis. Therefore, the States' MOE and matching requirements are also
measured on an award year basis.
For example, a State wants to participate in the SLEAP Program for
the 2000-2001 award year. In the 1999-2000 award year the total State
expenditures for authorized SLEAP activities totaled $150,000. In the
1998-1999 award year, the State spent $100,000 on the authorized
activities. The State expenditures for the activities for the 1999-2000
award year exceed the expenditures for the 1998-1999 award year and
thus, satisfy the SLEAP MOE requirement.
In calculating the SLEAP MOE under the proposed regulations, the
State reports any non-Federal funds that it spends for any activity or
program that meets the definition of any of the authorized SLEAP
activities, even if the State does not use those funds in the SLEAP
Program. For the purpose of the SLEAP MOE, this applies even if the
non-Federal funds were used to match another Federal program.
For example, if a State participates in the Gaining Early Awareness
and Readiness for Undergraduate Programs (GEAR UP) Program, the State
matching dollars for GEAR UP would be included as part of the State's
SLEAP MOE because GEAR UP activities meet the definition of SLEAP
authorized activity seven, which includes early intervention and
mentoring programs. However, those State matching dollars used for GEAR
UP, while acceptable for SLEAP MOE purposes, can not be used as
matching dollars for any of the SLEAP authorized activities, because
those State dollars are already used to match another Federal program
which would be in violation of Sec. 80.24 of the Education Department
General Administrative Regulations (EDGAR). As another example, assume
that a State awards teaching scholarships to students, which
corresponds with SLEAP activity five, but does not use those funds as
matching dollars for the SLEAP Program. Those State dollars for
teaching scholarships would still be included in the State's SLEAP MOE.
The proposed regulations also require that the Federal SLEAP
Program funds be matched with non-Federal funds. For every Federal
SLEAP dollar a State spends, it must spend at least two matching
dollars from non-Federal funds. A State may use any non-Federal funds
that are spent for any of the authorized SLEAP activities, as long as
those funds are not also being used to match other Federal programs.
Non-Federal funds include, but are not limited to, State-appropriated
funds or privately donated funds. The proposed regulations allow the
Federal SLEAP dollars to be spent by the State for one authorized SLEAP
activity and the non-Federal funds to be spent for a different
authorized SLEAP activity.

Section 692.70 How Does the Secretary Allot Funds to the States?

Proposed Sec. 692.70, by referencing Sec. 692.10, specifies the
formula used to allocate SLEAP funds to the participating States. Under
the proposed regulations, Federal SLEAP funds are allocated to each
State in the SLEAP Program based on the same formulas used for the LEAP
Program. The LEAP and SLEAP programs are funded under one
appropriation. The initial $30 million of the appropriation funds the
LEAP Program. Any amount in excess of the initial $30 million must be
used to carry out authorized activities under the SLEAP Program.
The proposed regulations require that a State's SLEAP allocation
from the first $76,452,287 appropriated for both LEAP and SLEAP be
calculated by a formula that provides a statutory hold-harmless
provision based on the funds allocated as SSIG funds to the State for
the 1979 fiscal year. The formula would calculate the State's SLEAP
portion of the total LEAP and SLEAP appropriation that does not exceed
the $76,452,287 amount that was provided to States in the 1979 fiscal
year as follows:
[GRAPHIC] [TIFF OMITTED] TP27JY00.055

When the total LEAP and SLEAP appropriation exceeds $76,452,287,
the amount of the appropriation that exceeds $76,452,287 also has to be
allocated to each participating State for its SLEAP Program. The
proposed regulations require that a set formula be used to calculate
the additional SLEAP amount that must be added to the results of the
formula shown above to derive the total SLEAP allocation for a State.
To determine this portion of the SLEAP allocation, when applicable, the
formula is as follows:
[GRAPHIC] [TIFF OMITTED] TP27JY00.056

Section 692.71 What Activities May be Funded Under the SLEAP Program?

Proposed Sec. 692.71 specifies the authorized SLEAP activities for
which a State may use SLEAP Program funds. The authorized activities
assist States in providing assistance to eligible students who
demonstrate financial need. The proposed regulations allow a State to
implement one or more of the activities under the SLEAP Program. Under
the proposed regulations, a State may use SLEAP funds to do one or more
of the following:
(1) LEAP Grant Supplement--Supplement its LEAP Program by
increasing LEAP grant amounts for postsecondary students who
demonstrate financial need (including exceeding the $5,000 maximum LEAP
grant limit), or by increasing the number of LEAP recipients. This
supplement may consist of Federal SLEAP funds or SLEAP matching funds,
or both, and is accounted for and reported under the SLEAP Program and
not the LEAP Program.

[[Page 46327]]

(2) Transition Programs--Implement transition programs for students
who demonstrate financial need and are enrolled in secondary school or
who have graduated from secondary school and are accepted for
enrollment in a postsecondary institution.
(3) Aid Programs for Critical Careers--Award financial aid to
postsecondary students who demonstrate financial need and wish to enter
careers in information technology, or other fields of study that the
State determines are critical to the State's workforce needs.
(4) Community Service Work-Study Jobs--Pay wages or salaries for
community service work-study jobs to postsecondary students who
demonstrate financial need.
(5) Teaching Scholarship Programs--Establish a postsecondary
scholarship program that makes awards to students who demonstrate
financial need and wish to become teachers, and award financial aid
from that program.
(6) Mathematics, Computer Science, or Engineering Scholarship
Programs--Establish a postsecondary scholarship program that makes
awards to students who demonstrate financial need and wish to pursue a
program of study leading to a degree in mathematics, computer science,
or engineering, and award financial aid from that program.
(7) Early Intervention, Mentoring, and Career Education Programs--
Implement early intervention, mentoring, and career education programs
for preschool, elementary school, or secondary school students who
demonstrate financial need.
(8) Merit and Academic Scholarships--Award merit or academic
scholarships for any field of study, including teaching, mathematics,
computer science, and engineering to postsecondary students who
demonstrate financial need.

Executive Order 12866

1. Potential Costs and Benefits

Under Executive Order 12866, we have assessed the potential costs
and benefits of this regulatory action.
The potential costs associated with the proposed regulations are
those resulting from statutory requirements and those we have
determined as necessary for administering this program effectively and
efficiently.
In assessing the potential costs and benefits--both quantitative
and qualitative--of this regulatory action, we have determined that the
benefits would justify the costs.
We have also determined that this regulatory action would not
unduly interfere with State, local, and tribal governments in the
exercise of their governmental functions.

2. Clarity of the Regulations

Executive Order 12866 and the President's Memorandum of June 1,
1998, on ``Plain Language in Government Writing'' require each agency
to write regulations that are easy to understand.
We invite comments on how to make these proposed regulations easier
to understand, including answers to questions such as the following:
<bullet> Are the requirements in the proposed regulations clearly
stated?
<bullet> Do the proposed regulations contain technical terms or
other wording that interferes with their clarity?
<bullet> Does the format of the proposed regulations (grouping and
order of sections, use of headings, paragraphing, etc.) aid or reduce
their clarity?
<bullet> Would the proposed regulations be easier to understand if
we divided them into more (but shorter) sections? (A ``section'' is
preceded by the symbol ``Sec. '' and a numbered heading; for example,
Sec. 692.70 How does the Secretary allot funds to the States?)
<bullet> Could the description of the proposed regulations in the
SUPPLEMENTARY INFORMATION section of this preamble be more helpful in
making the proposed regulations easier to understand? If so, how?
<bullet> What else could we do to make the proposed regulations
easier to understand?
Send any comments that concern how the Department could make these
proposed regulations easier to understand to the person listed in the
ADDRESSES section of the preamble.

Regulatory Flexibility Act Certification

We certify that these proposed regulations would not have a
significant economic impact on a substantial number of small entities.
These proposed regulations would affect institutions of higher
education that participate in title IV, HEA programs, States, and State
agencies. The U.S. Small Business Administration Size Standards define
institutions as ``small entities'' if they are for-profit or nonprofit
institutions with total annual revenue below $5,000,000 or if they are
institutions controlled by governmental entities with populations below
50,000. Although States and State agencies are impacted by these
regulations, they are not defined as ``small entities'' in the
Regulatory Flexibility Act. Therefore, these proposed regulations would
not have a significant economic impact on small entities.

Paperwork Reduction Act of 1995

Proposed Sec. 692.60 contains information collection requirements.
These requirements are accounted for under OMB No. 1845-0034, the
information collection clearance package for the application to
participate in the SLEAP Program. Proposed Sec. 692.53 contains
information collection requirements. These requirements will be
accounted for in an information collection clearance package for the
SLEAP Program performance report that will be submitted to OMB for
review and approval. Therefore, all collection requirements found in 34
CFR part 692 will be accounted for in the previously mentioned
information collection clearance packages for the reports and not the
regulations.
Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), we
have submitted a copy of these sections to the Office of Management and
Budget (OMB) for its review.
Collection of information: Special Leveraging Educational
Assistance Partnership Program--Sec. 692.60--What must a State do to
receive an allotment under the SLEAP Program?--Application to
Participate in the Special Leveraging Educational Assistance
Partnership (SLEAP) Program--OMB No. 1845-0034. Section 415C(a) of the
HEA requires a State that desires to obtain a payment under this
program for any fiscal year to submit an annual application containing
information necessary to enable us to carry out the functions under
this program. The current application is approved for use through
September 30, 2000. A new form will be developed and submitted to OMB
for approval.
Section 76.720 of EDGAR requires a State to submit an annual
performance report, unless we allow less frequent reporting. Although a
performance report has not currently been developed for the SLEAP
Program, we expect to have a form approved and available for
distribution to participating States before October 1, 2001, the
deadline for States to report their 2000-2001 award year SLEAP Program
expenditures.
The annual Application to Participate in the SLEAP Program provides
data used in program management. The complete application shows State
qualifications for Federal funds, including the matching requirements,
MOE capability, and methods of determining student financial need. With
its signed assurances, the document commits a State to administer the
Federal funds and State matching funds in compliance with the statute.

[[Page 46328]]

If you want to comment on the information collection requirements,
please send your comments to the Office of Information and Regulatory
Affairs, OMB, room 10235, New Executive Office Building, Washington, DC
20503; Attention: Desk Officer for U.S. Department of Education. You
may also send a copy of these comments to the Department representative
named in the ADDRESSES section of this preamble.
We consider your comments on these proposed collections of
information in--
<bullet> Deciding whether the proposed collections are necessary
for the proper performance of our functions, including whether the
information will have practical use;
<bullet> Evaluating the accuracy of our estimate of the burden of
the proposed collections, including the validity of our methodology and
assumptions;
<bullet> Enhancing the quality, usefulness, and clarity of the
information we collect; and
<bullet> Minimizing the burden on those who must respond. This
includes exploring the use of appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of information technology; e.g., permitting electronic submission of
responses.
OMB is required to make a decision concerning the collection of
information contained in these proposed regulations between 30 and 60
days after publication of this document in the Federal Register.
Therefore, to ensure that OMB gives your comments full consideration,
it is important that OMB receive the comments within 30 days of
publication. This does not affect the deadline for your comments to us
on the proposed regulations.

Intergovernmental Review

The SLEAP Program is subject to Executive Order 12372 and the
regulations in 34 CFR part 79. One of the objectives of the Executive
order is to foster an intergovernmental partnership and a strengthened
federalism. The Executive order relies on processes developed by State
and local governments for coordination and review of proposed Federal
financial assistance.
This document provides early notification of our specific plans and
actions for this program.

Assessment of Educational Impact

We particularly request comments on whether these proposed
regulations would require transmission of information that any other
agency or authority of the United States gathers or makes available.

Electronic Access to This Document

You may view this document in text or Adobe Portable Document
Format (PDF) on the Internet at the following sites:

http://ocfo.ed.gov/fedreg.htm
http://ifap.ed.gov/csb_html/fedlreg.htm

To use PDF you must have Adobe Acrobat Reader Program, which is
available free at the first of the previous sites. If you have
questions about using PDF, call the U.S. Government Printing Office
(GPO), toll free, at 1-888-293-6498; or in the Washington, DC area at
(202) 512-1530.

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


(Catalog of Federal Domestic Assistance Number: 84.069 Special
Leveraging Educational Assistance Partnership Program)

List of Subjects in 34 CFR Part 692

Grant programs--education, Postsecondary education, State
administered--education, Student aid--education, Reporting and
recordkeeping requirements.

Dated: July 19, 2000.
Richard W. Riley,
Secretary of Education.
For the reasons stated in the preamble, the Secretary proposes to
amend title 34 of the Code of Federal Regulations by amending part 692
as follows:

PART 692--LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM

1. The authority citation for part 692 continues to read as
follows:

Authority: 20 U.S.C. 1070c through c-4, unless otherwise noted.

2. Subpart B is revised to read as follows:
Subpart B--Special Leveraging Educational Assistance Partnership
Program

General

Sec.
692.50 What is the Special Leveraging Educational Assistance
Partnership Program?
692.51 What other regulations apply to the SLEAP Program?
692.52 What definitions apply to the SLEAP Program?
692.53 What requirements must a State satisfy to receive SLEAP
Program funds?
692.54 What eligibility requirements must a student satisfy to
participate in the SLEAP Program?

How Does a State Apply to Participate in the SLEAP Program?

692.60 What must a State do to receive an allotment under the
SLEAP Program?

What Is the Amount of Assistance and How May It Be Used?

692.70 How does the Secretary allot funds to the States?
692.71 What activities may be funded under the SLEAP Program?

How Does a State Administer Its Community Service Work-Study Program?

692.80 How does a State administer its community service work-
study program?

Subpart B--Special Leveraging Educational Assistance Partnership
Program

General


Sec. 692.50 What is the Special Leveraging Educational Assistance
Partnership Program?

The Special Leveraging Educational Assistance Partnership (SLEAP)
Program assists States in providing--
(a) Grants, scholarships, and community service work-study
assistance to eligible postsecondary education students who demonstrate
financial need;
(b) Assistance to fund early intervention, mentoring, and career
education programs for eligible students enrolled in preschool,
elementary school, or secondary school who demonstrate financial need;
and
(c) Assistance to fund transition programs for eligible students
enrolled in secondary school who demonstrate financial need.

(Authority: 20 U.S.C. 1070c-3a)


Sec. 692.51 What other regulations apply to the SLEAP Program?

The regulations listed in Sec. 692.3 also apply to the SLEAP
Program.

(Authority: 20 U.S.C. 1070c-3a)

Sec. 692.52 What definitions apply to the SLEAP Program?

The following definitions apply to the SLEAP Program:
(a) The definitions listed in Sec. 692.4.
(b) The definitions of the following terms in 34 CFR 77.1 (EDGAR):


Elementary school.

Preschool.

Secondary school.

(Authority: 20 U.S.C. 1070c-3a)


Sec. 692.53 What requirements must a State satisfy to receive SLEAP
Program funds?

To receive SLEAP Program funds for any fiscal year, a State must--
(a) Participate in the LEAP Program;
(b) Meet the requirements in Sec. 692.60; and

[[Page 46329]]

(c) Have a program that--
(1) Provides assistance only to students who meet the eligibility
requirements in Sec. 692.54;
(2) Satisfies the requirements in Secs. 692.21(a) and (k); and
(3)(i) Satisfies the requirements in Secs. 692.21(e), (f), (g), and
(j), if that program provides students with postsecondary education
assistance; or
(ii) Provides that no student or parent may be charged a fee that
is payable to an organization other than the State for the purpose of
collecting data to make a determination of financial need for
preschool, elementary, or secondary school students.

(Authority: 20 U.S.C. 1070c-3a)

Sec. 692.54 What eligibility requirements must a student satisfy to
participate in the SLEAP Program?

(a) To receive postsecondary financial assistance under the SLEAP
Program, a student must meet the eligibility requirements contained in
Sec. 692.40.
(b) To receive early intervention, mentoring, career education or
transition program services under the SLEAP Program, a preschool,
elementary, or secondary school student must--
(1) Meet the applicable citizenship and residency requirements in
34 CFR 668.33; and
(2) Demonstrate financial need as determined by the State.

(Authority: 20 U.S.C. 1070c-3a)

How Does a State Apply To Participate in the SLEAP Program?


Sec. 692.60 What must a State do to receive an allotment under the
SLEAP Program?

To receive an allotment under the SLEAP Program, a State must--
(a) Submit an application in accordance with the provisions in
Sec. 692.20;
(b) Identify the activities in Sec. 692.71 that it plans to carry
out;
(c) Provide an assurance that for the fiscal year prior to the
fiscal year for which the State is requesting Federal funds, the amount
the State expended from non-Federal sources per student, or the
aggregate amount the State expended, for all the authorized activities
in Sec. 692.71 will be no less than the amount the State expended from
non-Federal sources per student, or in the aggregate, for those
activities for the second fiscal year prior to the fiscal year for
which the State is requesting Federal funds; and
(d) Ensure that the Federal share will not exceed one-third of the
total funds expended under the SLEAP Program.

(Authority: 20 U.S.C. 1070c-3a)

What Is the Amount of Assistance and How May It Be Used?


Sec. 692.70 How does the Secretary allot funds to the States?

For each fiscal year, the Secretary allots to each eligible State
that applies for SLEAP funds an amount in accordance with the
provisions in Sec. 692.10.

(Authority: 20 U.S.C. 1070c-3a)

Sec. 692.71 What activities may be funded under the SLEAP Program?

A State may use the funds it receives under the SLEAP Program to
implement one or more of the following:
(a) Increase the dollar amount of grants awarded under the LEAP
Program to eligible students who demonstrate financial need as
determined in Sec. 692.41.
(b) Carry out transition programs from secondary school to
postsecondary education for eligible students who demonstrate financial
need as determined by the State.
(c) Carry out a financial aid program for eligible students who
demonstrate financial need as determined in Sec. 692.41 and who wish to
enter careers in information technology or other fields of study
determined by the State to be critical to the State's workforce needs.
(d) Make funds available for community service work-study
activities for eligible students who demonstrate financial need as
determined in Sec. 692.41.
(e) Create a postsecondary scholarship program for eligible
students who demonstrate financial need as determined in Sec. 692.41
and who wish to enter teaching.
(f) Create a scholarship program for eligible students who
demonstrate financial need as determined in Sec. 692.41 and who wish to
enter a program of study leading to a degree in mathematics, computer
science, or engineering.
(g) Carry out early intervention programs, mentoring programs, and
career education programs for eligible students who demonstrate
financial need as determined by the State.
(h) Award merit or academic scholarships to eligible students who
demonstrate financial need as determined in Sec. 692.41.

(Authority: 20 U.S.C. 1070c-3a)

How Does a State Administer Its Community Service Work-Study
Program?


Sec. 692.80 How does a State administer its community service work-
study program?

When administering its community service work-study program, a
State must follow the provisions in Sec. 692.30, other than the
provisions of paragraph (a)(1) of that section.

(Authority: 20 U.S.C. 1070c-3a)

[FR Doc. 00-18971 Filed 7-26-00; 8:45 am]
BILLING CODE 4000-01-U

]

Last Modified: 07/31/2000