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Publication
Date: July 3, 2006
FRPart: III
Page Numbers: 37989-38012
Summary: Interim Final Regulations for the ACG and National SMART Grant Programs
Posted on 07-03-2006
[Federal Register:
July 3, 2006(Volume 71, Number 127)]
[Rules and Regulations]
[Page 37989-38012]
[From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03jy06-12]
[[Page 37989]]
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Part III
Department of Education
34 CFR Parts 668, 674 et al.
Establishment of Regulations for the Academic Competitiveness Grant and
National Science and Mathematics Access to Retain Talent Grant Programs,
and Grant and Loan Program Amendments; Interim Rule
[[Page 37990]]
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DEPARTMENT OF EDUCATION
34 CFR Parts 668, 674, 675, 676, 682, 685, 690, and 691
RIN 1840-AC86
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; Academic Competitiveness
Grant Program; and National Science and Mathematics Access to Retain Talent
Grant Program
AGENCY: Office of Postsecondary Education, Department of Education.
ACTION: Interim final regulations; request for comments.
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SUMMARY: The Secretary amends title 34 to establish regulations for the
Academic Competitiveness Grant (ACG) and National Science and Mathematics
Access to Retain Talent Grant (National SMART Grant) programs. The Secretary
also amends the regulations related to the 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, and
Federal Pell Grant Program. These interim final regulations and amendments
are needed to implement provisions of the Higher Education Act of 1965
(HEA), as amended by the Higher Education Reconciliation Act of 2005 (HERA).
The interim final regulations for the ACG and National SMART Grant programs
specify the eligibility requirements for a student to apply for and receive
an award under these programs for the 2006-2007 award year. These interim
final regulations also identify the roles of institutions of higher education
(institutions), State educational agencies (SEAs), and local educational
agencies (LEAs) in administering the programs. These interim final regulations
will be effective for the 2006-2007 award year. The Secretary is, however,
soliciting comments on all aspects of these interim final regulations
and may, for the 2007- 2008 award year, amend and finalize them as appropriate
in response to comments received. For regulations that would take effect
for the 2008- 2009 award year and subsequent award years, the Secretary
intends to conduct negotiated rulemaking, as required under section 492
of the HEA.
DATES: These regulations are effective August 2, 2006. The Department
must receive any comments on or before August 17, 2006. Affected parties
do not have to comply with the information collection requirements in
Sec. Sec. 691.12, 691.15, and 691.83 until the Department of Education
publishes in the Federal Register the control numbers assigned by the
Office of Management and Budget (OMB) to these information collection
requirements. Publication of the control numbers notifies the public that
OMB has approved these information collection requirements under the Paperwork
Reduction Act of 1995.
ADDRESSES: Address all comments about these interim final regulations
to: Fred Sellers, U.S. Department of Education, P.O. Box 33184, Washington,
DC 20033-3184. If you prefer to deliver your comments by hand or by using
a courier service or commercial carrier, address your comments to: Fred
Sellers, 1990 K Street NW., room 8039, Washington, DC 20006-8542 If you
prefer to send your comments through the Internet, you may address them
to us at the U.S. Government Web site: http://www.regulations.gov
. Or you may send your Internet comments to us at the following address:
ACG.NSG@ed.gov. You must include the
term ``Academic Competitiveness and National SMART Grants'' in the subject
line of your electronic message.
FOR FURTHER INFORMATION CONTACT: Jacquelyn Butler, U.S. Department of
Education, 1990 K Street, NW., room 8053, Washington, DC 20006-8544. Telephone:
(202) 502-7890. Sophia McArdle, U.S. Department of Education, 1990 K Street,
NW., room 8019, Washington, DC 20006-8544. Telephone: (202) 219-7078.
If you use a telecommunications device for the deaf (TDD), you may call
the Federal Relay Service (FRS) 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:
Background
These interim final regulations implement certain provisions of the Higher
Education Reconciliation Act of 2005 (Pub. L. 109-171), enacted on February
8, 2006, 20 U.S.C. 1070a-1 (HERA), amending the Higher Education Act of
1965, as amended (HEA). Section 8003 of HERA amended the HEA by adding
a new section 401A establishing the ACG and National SMART Grant programs
to assist eligible students in paying their college education expenses
and appropriating funds for these programs starting with the 2006-2007
award year, beginning on July 1, 2006. The ACG Program awards grants to
eligible financially needy students who complete a rigorous secondary
school program of study. An ACG is available during a student's first
and second academic years of undergraduate education in an eligible undergraduate
program. The National SMART Grant Program awards grants to eligible financially
needy students who are pursuing majors in the physical, life, or computer
sciences, mathematics, technology, engineering, or foreign languages critical
to the national security of the United States. A National SMART Grant
is available to students during the third and fourth academic years of
undergraduate education in an eligible undergraduate program. Under its
principles for regulating, the Department of Education (Department) regulates
only when absolutely necessary. The Department regulates in a way to improve
the quality and equality of services to its customers and in the most
flexible and least burdensome way possible. These interim final regulations
are necessary to implement the ACG and National SMART Grant programs.
Significant Regulations
We group major issues according to subject. We discuss other substantive
issues under the sections of the regulations to which they pertain. Generally,
we do not address regulatory provisions that are technical or otherwise
minor in effect.
Relationship Between the Federal Pell Grant Program and the ACG and National
SMART Grant Programs.
The ACG and National SMART Grant program interim final regulations duplicate
those of the Federal Pell Grant Program to the extent practicable given
the similar nature of these programs.
Like the Federal Pell Grant Program, the ACG and National SMART Grant
programs provide for direct grants from the Federal Government to students
to assist in paying their college expenses. In addition, a student must
be receiving a Federal Pell Grant to be eligible for an ACG or National
SMART Grant.
The Secretary will be administering the ACG and National SMART Grant programs
using the same delivery system that the Secretary uses for the Federal
Pell Grant Program. The Secretary expects that this coordination of administrative
requirements will assist participating institutions in administering these
programs, reduce the amount of additional institutional administrative
burden and paperwork, and simplify the process for students to apply for
assistance under these programs.
Accordingly, the following definitions are repeated in the ACG and National
SMART Grant program interim final regulations without changes from the
Federal Pell Grant Program regulations:
- Institutional Student Information Record (ISIR).
- Payment Data.
- Student Aid Report (SAR).
- Undergraduate Student.
- Valid Institutional Student Information Record (valid ISIR).
- Valid Student Aid Report (valid SAR).
In addition, Sec. Sec. 691.61, 691.71, 691.78, 691.79, 691.81, 691.82,
and 691.83 of the ACG and National SMART Grant program interim final regulations
do not reflect any substantive changes from the corresponding sections
in the Federal Pell Grant Program regulations (34 CFR part 690). These
sections are repeated in these interim final regulations to provide a
complete description in part 691 of the program-specific requirements
for the ACG and National SMART Grant programs. Other sections that implement
specific ACG and National SMART Grant program requirements reflect Federal
Pell Grant Program requirements to the extent practicable.
Part 668--Student
Assistance General Provisions
The following sections
in 34 CFR part 668 are being amended to reflect specific requirements
applicable to the ACG and National SMART Grant programs.
Section 668.33
Citizenship and Residency Requirements
Statute: Section
401A(c)(1) of the HEA requires that a student be a citizen of the United
States to be eligible for the ACG and National SMART Grant programs.
The HEA continues to provide that permanent residents and certain other
categories of noncitizens may be eligible for the other title IV, HEA
programs, including the Federal Pell Grant Program.
Regulations: This section provides that only students who are United States
citizens are eligible to receive ACG and National SMART Grants.
Reason: The regulations implement the statutory requirement that an eligible
student for the ACG and National SMART Grant Programs must be a United
States citizen.
Section 668.35 Student
Debts Under the HEA and to the U.S.
Regulations: This
section provides that a student is not liable for an ACG or National SMART
Grant overpayment in an award year if the institution can eliminate the
overpayment by adjusting subsequent title IV, HEA program payments, excluding
Federal Pell Grant, ACG, or National SMART Grant monies, in that same
award year. If the overpayment cannot be eliminated by adjusting subsequent
title IV, HEA program payments, a student is still not liable for an ACG
or National SMART Grant overpayment if the overpayment can be eliminated
by adjusting subsequent ACG or National SMART Grant payments, as appropriate,
in that same award year.
Reason: These regulations detail the requirements for institutions to
follow when resolving overpayments to students under the ACG and National
SMART Grant programs. These requirements are similar to the requirements
in the Federal Pell Grant Program but also account for the requirement
in section 401A(d) of the HEA that the amount of an ACG or National SMART
Grant award to a student must be adjusted in relation to other aid received
and the student's expected family contribution.
Part 691--Academic
Competitiveness Grant (ACG) and National Science and Mathematics Access
To Retain Talent Grant (National SMART Grant) Programs
Subpart A--Scope,
Purpose and General Definitions
Section 691.2 Definitions
Eligible Major
Statute: Section 401A(c)(3)(C)(i) of the HEA requires a student to pursue
a major in the physical, life, or computer sciences, mathematics, technology,
engineering, or a critical foreign language in order to be eligible for
a National SMART Grant.
Regulations: Section 691.2(d) provides a definition of eligible major
for purposes of the National SMART Grant Program. An eligible major, as
determined by the Secretary under Sec. 691.17, is a major in one of the
physical, life, or computer sciences, mathematics, technology, engineering
or a critical foreign language.
Reason: This section implements the statutory requirement that, to qualify
as an eligible student for a National SMART Grant, a student must major
in one of the physical, life, or computer sciences, mathematics, technology,
engineering, or a critical foreign language. Eligible Program Statute:
Section 401A(c)(3) of the HEA requires that an eligible student be enrolled
or accepted for enrollment in an undergraduate program at a two- or four-year
degree-granting institution of higher education to be eligible for an
ACG or in a four-year degree-granting institution of higher education
to be eligible for a National SMART Grant.
Regulations: This section adds a definition of eligible program in Sec.
691.2(d). An eligible program is an eligible program as defined in 34
CFR 668.8 that, for the ACG Program, leads to an associate's or bachelor's
degree, is a two-academic-year program acceptable for full credit toward
a bachelor's degree, or is a graduate degree program that includes at
least three academic years of undergraduate education or, for the National
SMART Grant Program, leads to a bachelor's degree in an eligible major
or is a graduate degree program in an eligible major that includes at
least three academic years of undergraduate education.
Reason: These provisions are necessary to implement the statute and to
ensure eligibility for students enrolled in combined undergraduate/ graduate
programs with at least three years of undergraduate study. Section 691.6
Duration of Student Eligibility--Undergraduate Course of Study
Statute: Under section 401A(d)(2)(B) of the HEA, an eligible student may
only receive one ACG for each of the first two academic years of an undergraduate
program and one National SMART Grant for each of the third and fourth
academic years of a bachelor's degree program.
Regulations: This section sets forth the duration of student eligibility
for the ACG and National SMART Grant programs by academic year and restricts
a student to one grant for each of his or her first, second, third, or
fourth academic years of enrollment in an eligible program.
Reason: Unlike the Federal Pell Grant Program, student eligibility under
the ACG and National SMART Grant programs is based on the specific academic
years of the student's eligible program rather than award years or completion
of a bachelor's degree.
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Section 691.7 Institutional Participation
Statute: Section 401A(c)(2) of the HEA provides that a student must be
eligible for a Federal Pell Grant to qualify for an ACG or National SMART
Grant.
Regulations: In general, the interim final regulations mirror the Federal
Pell Grant program participation requirements. In addition, the interim
final regulations require an institution that participates in the Federal
Pell Grant Program and offers an educational program that is an eligible
program for the ACG or National SMART Grant programs, to participate in
the ACG and National SMART Grant programs, as applicable. A coordinating
technical amendment is also being made to 34 CFR 690.7 of the Federal
Pell Grant Program regulations to require that an institution may not
participate in the Federal Pell Grant Program if it has at least one eligible
program under Sec. 691.2(d) and does not participate in the ACG or National
SMART Grant programs, as applicable.
Reason: An otherwise eligible student must be eligible for a Federal Pell
Grant to receive an ACG or National SMART Grant. The Secretary believes
that mandating institutional participation in all three programs when
eligible programs are offered at an institution is consistent with the
statute's requirement that the Secretary award grants to Pell-eligible
students.
Section 691.8 Enrollment
Status for Students Taking Regular and Correspondence Courses
Statute: Section
401A(c) of the HEA provides that a student must be a full-time student
to be eligible for an ACG or National SMART Grant.
Regulations: This section sets forth the circumstances under which correspondence
courses may be applied toward a student's full-time enrollment status
in a noncorrespondence study program. The interim final regulations in
Sec. 691.8(a) and (b) duplicate the Federal Pell Grant Program regulations
with respect to correspondence work that can be included in determining
a student's enrollment status. Section 691.8(c), however, provides that
a student taking correspondence courses is considered a full-time student
if the student is taking coursework that is commensurate with the institution's
standard for full-time students and the student's noncorrespondence coursework
constitutes at least one-half of the institution's required minimum coursework
for full-time students.
Reason: These provisions are necessary to clarify what is required for
determining whether a student taking correspondence courses is considered
full-time. The Secretary believes these provisions are consistent with
34 CFR 690.8 of the Federal Pell Grant Program regulations under which
the enrollment status of a student taking only correspondence study is
never greater than half-time. Section 691.8(c) of these interim final
regulations is consistent with 34 CFR 690.8(b)(3) of the Federal Pell
Grant Program regulations in that it ensures that a student is enrolled
in noncorrespondence coursework that is at least one-half of the minimum
coursework to qualify as a full- time student.
Section 691.11 Payments
From More Than One Institution
Regulations: This
section addresses the situation in which a student attends more than one
institution and requires a student to receive an ACG or National SMART
Grant from the same institution that awards the student his or her Federal
Pell Grant.
Reason: Under the Federal Pell Grant Program, a student cannot receive
payments from more than one institution or from the Secretary and an institution
at the same time. To ensure coordination with the Federal Pell Grant Program,
these regulations provide that a student can only receive an ACG or National
SMART Grant from the same institution that awards the student's Federal
Pell Grant.
Subpart B--Application
Procedures
Section 691.12 Application
Statute: Section
401A(c) of the HEA provides the student eligibility requirements for the
ACG and National SMART Grants. Section 401A(c)(3)(A) and (B) of the HEA
requires that a student successfully complete a rigorous secondary school
program of study to receive an ACG.
Regulations: This section specifies the procedures that a student must
follow when applying for an ACG or National SMART Grant, and in particular,
requires that a student must submit a Free Application for Federal Student
Aid (FAFSA). The interim final regulations provide that a student may
be required to provide additional information in the application, including
information about the rigorous secondary school program of study that
the student completed to qualify for an ACG.
Reason: Under section 483(a) of the HEA, the FAFSA is the standard form
used by all students applying for title IV, HEA program aid, including
Federal Pell Grants and these programs. Use of this form and procedures
that are similar to the Federal Pell Grant Program will facilitate students'
completion and institutions' use of the FAFSA for the ACG and National
SMART Grant programs.
Section 691.15 Eligibility To Receive a Grant
General Requirements
Statute: Section
401A(c) of the HEA provides student eligibility requirements for the ACG
and National SMART Grant programs.
Regulations: Section 691.15(a) of these interim final regulations sets
forth the ACG and National SMART Grant student eligibility requirements
common to both programs including United States citizenship, full-time
enrollment, and receipt of a Federal Pell Grant in the payment period
that a student receives an ACG or National SMART Grant.
Reason: This section implements the statutory provision that, to be eligible
to receive an ACG or National SMART Grant, a student must establish eligibility
for assistance under the title IV, HEA programs and establish that he
or she is a United States citizen, is enrolled full-time, and is eligible
for a Federal Pell Grant. The Secretary believes that the institution's
determination that a student will receive a Federal Pell Grant is the
best way to demonstrate that a student is Pell-eligible for purposes of
the ACG and National SMART Grant programs.
Academic Year in
College
Statute: Section
401A(c)(3)(A), (B), and (C) of the HEA ties a student's eligibility for
a grant to the student's enrollment in the first, second, third, and fourth
academic years of a program of undergraduate education.
Regulations: The interim final regulations provide that a student may
receive an ACG during the first and second academic years of an eligible
program of undergraduate education and may receive a National SMART Grant
during the third and fourth academic years of an eligible program of undergraduate
education. Section 691.15(b)(1)(iii)(B) further provides that, for an
eligible student to receive an ACG for the student's second academic year,
the student must have successfully completed the first academic year.
There is a parallel provision for eligibility for the fourth academic
year of the National SMART Grant program in Sec. 691.15(c)(5). Thus, for
a student to receive a second- year ACG, for example, a student must be
enrolled in the second academic year of the student's eligible program,
after successfully completing the credit or clock hours and weeks of instructional
time of the first academic year, consistent with 34 CFR 668.3.
Reason: The interim final regulations implement the statutory requirement
that a student's eligibility for an ACG or National SMART Grant is based,
in part, on the student's academic year of enrollment. The term ``academic
year'' as used in these interim final regulations is the title IV, HEA
program academic year as defined by the institution for an eligible program
under the Student Assistance General Provisions regulations (34 CFR 668.3)
and in accordance with section 481(a) of the HEA as amended by the HERA.
In addition to being consistent with the other title IV, HEA programs,
using this definition will allow the Secretary to provide assistance to
qualified Federal Pell Grant recipients as early as possible as they progress
through their educational program. The Secretary is specifying in the
interim final regulations that a student applying for an ACG in his or
her second academic year or a student applying for a National SMART Grant
in his or her fourth academic year must have successfully completed the
first and third academic years, respectively. The Secretary believes that
a student should not be considered to have completed the credit or clock
hours of an academic year for an ACG or National SMART Grant unless the
student successfully completes, i.e., passes and earns, the credits or
hours in the title IV, HEA academic year. Grade Point Average (GPA) Statute:
Section 401A(c)(3)(B) and (C) of the HEA provides that a student's eligibility
for a grant is based, in part, on the student obtaining a cumulative GPA
of at least 3.0 (or the equivalent as determined by the Secretary) in
his or her first academic year of an educational program for a second-year
ACG and in the coursework required for the student's major for a National
SMART Grant.
Regulations: Under Sec. 691.15(b)(1)(iii)(C), to receive an ACG in the
second academic year, a student must successfully complete the first academic
year of his or her eligible program and obtain a cumulative GPA of at
least a 3.0 on a 4.0 scale, or the equivalent, as determined by the institution
for other academic and title IV, HEA program purposes. Similarly, to receive
a National SMART Grant, under Sec. 691.15(c)(3), a student must maintain
at least a 3.0 on a 4.0 scale, or the equivalent, cumulative GPA through
the most recently completed payment period in the coursework required
for a student's eligible program. For both programs, calculation of a
student's GPA for purposes of eligibility for an ACG or National SMART
Grant must be done consistent with other institutional measures for academic
and title IV, HEA program purposes.
In the case of a transfer student, Sec. 690.15(e) of the interim final
regulations provides that an institution must rely on the grades of the
courses from the prior institution that the institution accepts toward
the student's eligible program for the first payment period. Use of grades
from any prior institution to determine a student's GPA will be optional
for the second and subsequent payment periods.
Reason: The Secretary believes that, in general, a student's GPA used
to determine eligibility for an ACG or National SMART Grant should be
determined by the institution under the same standards as are used to
calculate a GPA for other academic and title IV, HEA program purposes
at the institution. This requirement provides consistency and reduces
the administrative burden on institutions. In the case of a National SMART
Grant, the Secretary has determined that a student must meet the GPA requirement
based on all the courses required for the student's eligible program,
not just those courses required for the eligible major. The Secretary
believes this is appropriate because this approach will minimize the burden
on institutions when determining whether a student meets the GPA requirement.
To ensure that a transfer student may qualify for a grant in his or her
first payment period at an institution to which the student has transferred,
the institution to which the student transfers must take into account
the grades in coursework taken at any prior institution that the institution
accepts on transfer towards the student's eligible program in calculating
a GPA to determine the student's eligibility. The Secretary believes it
is appropriate to make consideration of transfer credits optional in the
second and subsequent payment periods at the institution to which the
student has transferred because the student will then have established
a GPA with coursework taken at the institution to which the student transferred
after the first payment period. The institution may then follow its standards
for academic and title IV, HEA program purposes without any further exceptional
treatment for the transfer student. Prior Enrollment in a Postsecondary
Educational Program
Statute: Section 401A(c)(3)(A)(ii) of the HEA provides that a student
is not eligible for an ACG in the student's first academic year of enrollment
in an eligible program if the student previously enrolled in a program
of undergraduate education.
Regulations: Under Sec. 691.15(b)(1)(ii)(B) of the interim final regulations,
a student is not eligible for an ACG in the student's first academic year
if the student previously enrolled as a regular student in a program of
undergraduate education.
Reason: The Secretary believes that it is appropriate to clarify that
a student is considered to have been enrolled in an undergraduate program
if the student was admitted into the program as a regular student, as
defined in 34 CFR 660.2. The term ``regular student'' is defined as ``a
person who is enrolled or accepted for enrollment at an institution for
the purpose of obtaining a degree, certificate, or other recognized educational
credential offered by that institution.'' A student is not disqualified
from eligibility for a first-year ACG based on his or her enrollment in
college courses while in high school if that student had not been enrolled
by the college for the purpose of obtaining a degree, certificate, or
other recognized educational credential offered by the college. A student
who was enrolled in a postsecondary program leading to a degree, certificate,
or other recognized educational credential while enrolled in high school
is not eligible for a first-year ACG. Under Sec. Sec. 101 and 102 of the
HEA, a postsecondary institution that enrolls high school students who
are not beyond the age of compulsory school attendance as regular students
is not eligible for title IV, HEA aid. Thus, an institution that admits
students as regular students who are in high school and are not beyond
the age of compulsory school attendance endangers both its institutional
eligibility and the eligibility of all students at the institution for
aid under all title IV, HEA programs. A student's enrollment in a payment
period during his or her first academic year of enrollment in an eligible
program does not render that student ineligible for an ACG during a subsequent
payment period during the first academic year if the student is otherwise
eligible for an ACG. For example, a student graduates from high school
in May 2006. In September 2006, the student enrolls for the fall semester
as a half- time student but is otherwise eligible for an ACG.
In January 2007, the student begins the second semester as a full-time
student. The student would not be considered to have been previously enrolled
in another postsecondary program under this provision and would be eligible
in the second semester for an ACG payment from the student's first-year
ACG Scheduled Award.
Documenting Completion
of a Rigorous Secondary School Program of Study
Statute: Section
401A(c)(3)(A)(i) and (B)(i) of the HEA requires that, to receive an ACG,
a student must have successfully completed a rigorous secondary school
program of study, as recognized by the Secretary.
Regulations: Under Sec. 691.15(b)(2) of the interim final regulations,
an institution is required to document a student's completion of a rigorous
secondary school program of study using documentation from the appropriate
cognizant authority provided by that authority or the student. Section
691.15(b)(3) of the interim final regulations provides that for a home-schooled
student, the student's parent or guardian is the cognizant authority for
purposes of providing documentation of the student's completion of a rigorous
program of study. Such documentation would include a transcript or its
equivalent or, alternatively, a detailed course description listing the
secondary school courses completed by the student. In the case of a transfer
student, Sec. 691.15(b)(4) of the interim final regulations provides that
an institution may rely on documentation of a prior institution's determination
that a student completed a rigorous secondary school program of study.
Such determination can be documentation of a student's receipt of an ACG
from a prior institution.
Reason: The Secretary believes that, in determining a student's eligibility
under the rigorous secondary school program of study requirement, the
institution must obtain documentation that the student has completed such
a course of study from the cognizant authority. The student or the cognizant
authority may provide the documentation. To maintain the integrity of
the application process, the Secretary is requiring that, if an institution
has reason to believe that documentation provided by a student is incomplete
or inaccurate, an institution must use documentation provided to it directly
from the cognizant authority. With respect to home-schooled students,
the Secretary is aware that parents or a student's guardian are the cognizant
authority for home- schooled students and is providing for this circumstance
in Sec. 691.15(b)(3) of these interim final regulations. In the case of
a transfer student, the Secretary believes that an institution's reliance
on a prior institution's determination and documentation of the student's
rigorous secondary school program of study provides sufficient assurance
of the student's eligibility and reduces institutional burden. This documentation
may be documentation of the student's receipt of an ACG at a prior eligible
institution.
Declaring an Eligible
Major
Statute: Section
401A(c)(3)(C)(i) of the HEA requires that a student must major in one
of the physical, life, or computer sciences, mathematics, technology,
engineering, or in a critical foreign language to be eligible for a National
SMART Grant.
Regulations: To be eligible for a National SMART Grant, Sec. 691.15(c)(2)
of the interim final regulations requires that a student must formally
declare his or her eligible major in accordance with the institution's
academic requirements. However, if under an institution's procedures,
a student would not be able to formally declare a major in time to qualify
for a National SMART Grant, the student must demonstrate his or her intent
to declare an eligible major as documented by the institution. As soon
as the student is able to formally declare a major, the student must do
so in order to remain eligible for a National SMART Grant. In all cases,
the student must enroll in the courses necessary to complete the degree
program and to fulfill the major requirements.
Reason: The Secretary believes the best assurance that a student is pursuing
an eligible major is obtained by a student formally declaring his or her
eligible major in accordance with the institution's academic requirements.
The Secretary is aware, however, that in some instances, under institutional
academic policies, a student is not allowed to declare his or her major
early enough to qualify for a National SMART Grant. The Secretary is,
therefore, providing an alternative means for students to qualify as having
an eligible major. Under this alternative approach, a student may demonstrate
his or her intent to declare an eligible major in accordance with the
institution's academic requirements. However, to ensure the integrity
of the program, the Secretary believes that it is important that the student
formally declare an eligible major as soon as the student is allowed.
Whether the student has formally declared a major or is covered by the
alternative approach, the student also must enroll in the courses needed
both to complete the student's eligible program and to fulfill the intended
eligible major's requirements. The Secretary believes this additional
requirement fulfills the statutory requirement because it further documents
the student's pursuit of an eligible major.
Section 691.16 Recognition
of a Rigorous Secondary School Program of Study
Statute: Section 401A(f) of the HEA requires the Secretary to recognize
at least one rigorous secondary school program of study in each State
to determine student eligibility for an ACG. Section 401A(c)(3)(A) and
(B) provides that a rigorous secondary school program of study is established
by an SEA or LEA.
Regulations: The interim final regulations provide that, for an award
year, the Secretary recognizes at least one rigorous secondary school
program of study in each State identified by an SEA or by an LEA that
can document that it is legally authorized by the State to establish a
separate secondary school program of study. In identifying secondary school
programs of study that it considers rigorous, an SEA or LEA must consider
programs that are offered at public, charter, private, tribal, and home
schools, prepare students to succeed in postsecondary education, and are
not General Education Development (GED) Certificate programs. The Secretary
believes that GED programs do not ensure the necessary academic achievement
to be considered rigorous secondary school programs of study. In these
interim final regulations, the Secretary is recognizing certain secondary
school programs of study as rigorous that are in addition to any that
may subsequently be explicitly identified by SEAs and LEAs and recognized
by the Secretary. These additional programs include existing advanced
and honors programs established by States and a set of courses identified
under the State Scholars Initiative sponsored by the Western Interstate
Commission for Higher Education (WICHE). In addition, an individual student
may be considered to have completed a rigorous secondary school program
of study, regardless of the school or program attended, if the individual
student successfully completes a set of courses similar to those required
under the State Scholars Initiative.
An individual student may also be considered to have completed a rigorous
secondary school program of study, regardless of the school or program
attended, if the individual student completes courses in the International
Baccalaureate Diploma Program or the College Board's Advanced Placement
Program and attains at least a minimum score, consistent with Sec. 691.16(d)(4)
and (5), respectively, on the examinations for those courses. The interim
final regulations also provide for publication by the Secretary of a list
of recognized rigorous secondary school programs of study for each award
year.
Reason: The interim final regulations in this section are necessary to
implement the statutory requirement that the Secretary recognizes at least
one rigorous secondary school program of study in each State. While SEAs
and LEAs may submit secondary school programs of study for the Secretary
to recognize as rigorous, there is no requirement that SEAs or LEAs take
such action. The Secretary, however, is under a mandate to recognize at
least one program in each State as rigorous. To fulfill this mandate,
the Secretary has identified several programs that the Secretary recognizes
as rigorous secondary school programs of study in addition to any that
may subsequently be explicitly identified by SEAs and LEAs and recognized
by the Secretary. Recognizing these programs as rigorous in these interim
final regulations will ensure that deserving students will be able to
establish their eligibility for an ACG. The Secretary has made an initial
determination that these particular programs indicate that a student is
adequately prepared to pursue postsecondary education successfully. With
respect to existing advanced or honors programs established by States,
the Secretary has determined that, based on their composition, these programs
inherently qualify as rigorous secondary school programs of study. Both
the set of courses identified under the State Scholars Initiative and
the set of similar courses prescribed in Sec. 691.16(d)(2) of these interim
final regulations are patterned after the recommendations for the essentials
of a strong curriculum in the National Commission on Excellence in Education's
report A Nation at Risk: The Imperative for Educational Reform, available
on the Department's Web site at
http://www.ed.gov/pubs/NatAtRisk/index.html.
As a result, the Secretary has determined that completing the courses
of these secondary programs of study establishes that a student has completed
a rigorous secondary school program of study. With respect to completing
courses in the International Baccalaureate Diploma Program or the College
Board's Advanced Placement Program and attaining at least a minimum score,
the Secretary has determined that completing these courses with the prescribed
minimum score establishes that a student has attained a level of ability
in completing his or her secondary school program that is commensurate
with completing a rigorous secondary school program of study. To ensure
a wide distribution of the list of recognized programs for each award
year, the Secretary will make the list available through a number of means,
including to students applying using FAFSA on the Web, the Department's
websites, and through Dear Colleague letters and other appropriate media.
Section 691.17 Determination
of Eligible Majors
Eligible Major
Statute: Section 401A(c)(3)(C)(i) of the HEA provides that a student may
receive a National SMART Grant if the student is pursuing a major, as
determined by the Secretary, in the physical, life, or computer sciences,
mathematics, technology, engineering, or a critical foreign language.
Regulations: Section 691.17(a) of the interim final regulations provides
that, for each award year, the Secretary identifies the eligible majors
in the physical, life, or computer sciences, mathematics, technology,
engineering, and, after consulting with the Director of National Intelligence,
critical foreign languages.
Reason: This section implements the statutory provision that the Secretary
determine eligible majors in the physical, life, and computer sciences,
mathematics, technology, engineering, and, after consulting with the Director
of National Intelligence, critical foreign languages. The Secretary will
publish a list of eligible majors by Classification of Instructional Program
(CIP) codes to provide a standardized method of identifying eligible majors.
The Secretary believes that no significant additional burden will be imposed
on institutions because they already use CIP codes. To ensure wide distribution
of the list of eligible majors for each award year, the Secretary will
make the list available on the Department's Web Sites, through Dear Colleague
letters, and through other appropriate media.
Duration of Eligible
Major
Statute: Section
401A(c)(3)(C)(i) of the HEA provides that a student may receive a National
SMART Grant if the student is pursuing a major, as determined by the Secretary,
in the physical, life, or computer sciences, mathematics, technology,
engineering, or a critical foreign language.
Regulations: Section 691.17(c) of the interim final regulations provides
that an eligible major for an award year remains an eligible major in
subsequent award years for a student who majored in that eligible major
and received a National SMART Grant in the award year in which the major
was an eligible major, even if that major is no longer listed as an eligible
major in subsequent award years during which the student is otherwise
eligible for a National SMART Grant.
Reason: The Secretary believes that a student who started a third academic
year, or a portion of a fourth academic year, in an eligible major that
ceases to be listed as an eligible major during a later award year should
not be penalized for this change. The regulations provide that a student
in this situation remains eligible to receive a National SMART Grant,
provided he or she continues to meet the other eligibility requirements.
Subpart F--Determination
of Awards
Section 691.62 Calculation
of a Grant
Maximum Award
Statute: Section
401A(d)(1)(A) of the HEA establishes the grant amount that an eligible
student can receive for each academic year of eligibility for an ACG or
National SMART Grant. Section 401A(d)(1)(B)(ii) of the HEA authorizes
the Secretary to ratably reduce the maximum grant amounts for both programs
when the funds available for a given fiscal year are less than the amount
needed to fund full awards for all eligible students.
Regulations: The interim final regulations provide that the Secretary
establishes and announces the ACG and National SMART Grant Scheduled Awards
each award year and sets forth the maximum grant amounts for each program
for each academic year of eligibility for a student as set forth in the
statute. The interim final regulations also provide that the Secretary
may revise the maximum award during an award year based on the availability
of funds.
Reason: The Secretary establishes the ACG and National SMART Grant Scheduled
Awards based on the availability of funds appropriated and the anticipated
number of eligible students. If funds are insufficient to support these
amounts, the ACG and National SMART Grant Scheduled Awards are ratably
reduced from the statutory maximums for both programs for all academic
years of enrollment. To ensure that all eligible students receive an award,
we also are providing that the Secretary may further revise the ACG and
National SMART Grant Scheduled Awards during an award year.
Treatment in Relation
to Other Aid Received
Statute: Section
401A(d)(1)(B)(i) of the HEA provides that the grant amount may not exceed
the student's cost of attendance when combined with the student's Federal
Pell Grant and other student financial assistance.
Regulations: Section 691.62(c) of the interim final regulations provides
that a student's ACG or National SMART Grant, when combined with a student's
expected family contribution determined under title IV, part F of the
HEA and estimated financial assistance as defined in 34 CFR 673.5(c),
682.200(b), and 685.102(b), may not exceed a student's cost of attendance
under section 472 of the HEA. Reason: ACG and National SMART Grants are
need-based grants. Need- based grant assistance cannot replace a family's
expected contribution toward a student's postsecondary expenses.
Section 691.63 Calculation
of a Grant for a Payment Period
General
Statute: Section
401A(d)(1)(A) of the HEA specifies the amount of a grant a student may
receive for an academic year.
Regulations: The interim final regulations detail how an institution calculates
an ACG or National SMART Grant payment for a payment period for an eligible
student depending on the academic calendar of the eligible program and
the amount of the student's ACG or National SMART Grant Scheduled Award.
Reason: As is the case with the Federal Pell Grant Program, a student's
award for an ACG or National SMART Grant is considered to be awarded across
a title IV, HEA academic year. The interim final regulations for this
section follow the corresponding Federal Pell Grant Program regulations
in 34 CFR 690.63 for calculating payments for payment periods to distribute
a student's award across a title, IV HEA academic year. Because students
enrolled in a program of study offered by correspondence are not eligible
for ACG or National SMART Grants because these students are not full-time,
the Secretary is not including in part 691 the Federal Pell Grant Program
provisions in 34 CFR 690.66, regarding calculation of a payment for a
payment period for programs of study offered by correspondence.
Calculation of a
Grant for a Payment Period That Applies to Two Academic Years
Regulations: Under
the interim final regulations, if a student is completing the remaining
portion of an academic year in a payment period, the student's payment
is calculated using the ACG or National SMART Grant Scheduled Award of
the academic year being completed.
Reason: In certain circumstances, a student may be completing in a payment
period the coursework for an academic year while also beginning to take
coursework applicable to the next academic year for which the student
may qualify for another ACG or National SMART Grant Scheduled Award. These
interim final regulations provide that the student's payment for a payment
period is calculated based on the ACG or National SMART Grant Scheduled
Award for the academic year that the student is completing. The Secretary
believes this provision is necessary to provide guidance to institutions
in calculating a student's payment for the payment period in this circumstance
and to ensure that eligible students receive their awards.
Section 691.64 Calculation
of a Grant for a Payment Period Which Occurs in Two Award Years
Regulations: This
section addresses how an institution calculates an ACG or National SMART
Grant payment for an eligible student's payment period when the student
is enrolled in a payment period that overlaps two award years. These interim
final regulations are the same as in 34 CFR 690.64 of the Federal Pell
Grant Program regulations, except for Sec. 691.64(a)(6), which provides
that a student's ACG or National Smart Grant must be assigned to the same
award year as the student's Federal Pell Grant and Sec. 691.64(b), which
prohibits a student from receiving more than his or her ACG or National
SMART Grant Scheduled Award for an academic year.
Reason: The requirement in Sec. 691.64(a)(6) is necessary to coordinate
these provisions with the student eligibility requirement in Sec. 691.15(a)(2)
that a student be receiving a Federal Pell Grant in a payment period in
order to be eligible for an ACG or National SMART Grant payment. The institution
must assign a payment period for an ACG or National SMART Grant that occurs
in two award years to the same award year that it assigns to the student's
Federal Pell Grant. In addition, Sec. 691.64(b) clarifies that, unlike
the Federal Pell Grant Program, a student's ACG or National SMART Grant
Scheduled Award is based only on completing an academic year of the student's
eligible program, rather than completing an academic year within an award
year, as in the Federal Pell Grant Program.
Section 691.65 Transfer Student: Attendance at More Than One Institution
During an Academic Year
Regulations: This
section specifies how an institution calculates an ACG or National SMART
Grant payment for an eligible student who transfers from another postsecondary
institution within the same award year. The interim final regulations
are similar to the corresponding provisions in 34 CFR 690.65 under the
Federal Pell Grant Program regulations with one exception. The Secretary
is adding paragraph (a)(2) to provide that a transfer student must receive
a Federal Pell Grant in the same payment period to be an eligible ACG
or National SMART Grant recipient at the second institution.
Reason: This provision coordinates these interim final regulations with
the student eligibility requirement in Sec. 691.15(a)(2) that a student
be receiving a Federal Pell Grant in a payment period in order to be eligible
for an ACG or National SMART Grant payment.
Subpart G--Administration
of Grant Payments
Section 691.75 Determination
of Eligibility for Payment GPA and Declaration of a Major
Statute: Section
401A(c) of the HEA provides the student eligibility requirements for the
ACG and National SMART Grants. Regulations: This section specifies the
requirements that govern an institution's determination of a student's
eligibility for a disbursement of an ACG or National SMART Grant. These
interim final regulations are similar to those in 34 CFR 690.75 of the
Federal Pell Grant Program to the extent practicable. Similar to the Federal
Pell Grant Program requirements for determinations of a student's satisfactory
academic progress, these interim final regulations add provisions for
the treatment of institutional determinations for a payment period regarding
changes in a student's GPA and, for National SMART Grants, a student's
major. Reason: A student's GPA may change during the course of a payment
period, depending on when grades are earned or posted. Similarly, a student
may declare an eligible major during a payment period. These provisions
provide institutions the flexibility to reconsider a student's eligibility
for an ACG or National SMART Grant payment during a payment period.
Payments for Nonterm
Self-Paced Programs
Regulations: Section
691.75(a)(3) provides that a student enrolled in a nonterm self-paced
program may not receive a disbursement for a payment period until the
student completes at least 50 percent of the credit or clock hours, or
the academic coursework, in the payment period at the rate of academic
progress of a full-time student.Section 691.75(e) describes a self-paced
program for purposes of this section as one that allows a student to complete
coursework without a defined academic schedule or to enroll in courses
within a program at either defined dates or optional start dates without
a defined schedule for completing the program.
Reason: Unlike term-based programs and nonterm programs with defined academic
schedules, a student's enrollment status in a self- paced program may
vary from that of other students in that program depending on the rate
of academic progress the individual student is making in completing the
credit or clock hours in the program. This varying rate of academic progress
is already addressed in the Federal Pell Grant Program regulations governing
calculation of payments for payment periods, 34 CFR 690.63(e), and Sec.
691.63(e) of these interim final regulations. For the numerator of the
fraction in 34 CFR 690.63(e)(2)(i) and Sec. 691.63(e)(3)(i) of these interim
final regulations, an institution must determine the weeks of instructional
time for full-time students in a program, using credit hours without terms
or clock hours, to complete the lesser of the credit or clock hours in
the program or the title IV, HEA academic year. For nonterm self-paced
programs, institutions must distinguish between part-time students and
full-time students to arrive at a proper value for the numerator in this
fraction and determine the number of weeks of instructional time necessary
for most full-time students enrolled in the program to complete the lesser
of the credit or clock hours in the program or the academic year. Although
an institution, to calculate a payment for the payment period, must determine
this value based on the behavior of full-time students enrolled in the
program, this value is used for the payment period calculations for all
students in an eligible program regardless of each student's enrollment
status. Thus, the calculations of payments for payment periods for clock-hour
and nonterm credit-hour programs do not provide any assurance regarding
an individual student's enrollment status. Under the definition of a payment
period in 34 CFR 668.4(b) and (c), a student may not progress to the next
payment period unless the student completes the clock hours in the payment
period or, for a credit-hour program, the credit hours and the weeks of
instructional time in the payment period. There is no requirement that
the student be progressing at the rate of a particular enrollment status
to move to the next payment period.
Thus, progressing to the next payment period does not ensure that a student
would be considered full-time. Because the existing Federal Pell Grant
Program regulations governing payment periods and calculations of payments
for payment periods do not ensure that a student is progressing at a full-time
enrollment status, the Secretary believes it is necessary for an institution
to determine that a student enrolled in a nonterm self- paced program
is progressing as a full-time student on or after the midpoint of the
payment period in hours or coursework before making a disbursement to
the student for that payment period. The Secretary believes this requirement
ensures that ACG and National SMART Grant funds will be awarded only to
full-time students. To clarify the programs that the Secretary believes
should fall under these requirements, the Secretary is adding paragraph
(e) to this section to describe nonterm programs that the Secretary considers
to be offered in a self-paced academic calendar.
Payment Prior to Receipt of GPA
Regulations: Under Sec. 691.75(d), an institution may make one disbursement
for a payment period to a student whose GPA is not yet available as required
under Sec. 691.15(b)(1)(iii)(C) and (c)(3). By making the disbursement,
the institution assumes liability for the disbursement if it subsequently
determines that the student's GPA was not eligible.
Reason: The Secretary recognizes that a student's grades for a prior payment
period are not always promptly available to determine the student's eligibility
for an ACG or National SMART Grant disbursement for the next payment period.
This provision provides the institution the authority to make a disbursement
to a student whom it anticipates would be eligible, but when the student's
grades for the prior payment period are available, if ineligible, the
grant must be rescinded.
Section 691.76 Frequency
of Payment
Regulations: This
section specifies how often an institution may pay a student. These interim
final regulations are the same as the Federal Pell Grant Program regulations
in 34 CFR 690.76 to the extent practicable but add that a student must
have completed a prior payment period as a full-time student in order
to receive payment in one lump sum for prior payment periods.
Reason: The purpose of this section is to detail when institutions may
disburse a payment within a payment period. These interim final regulations
also ensure that a student has met the full-time status requirement, and
is therefore eligible for disbursement of an ACG or National SMART Grant
payment for a prior payment period.
Regulatory Impact
Analysis
Under Executive Order
12866, the Secretary must determine whether the regulatory action is ``significant''
and therefore subject to the requirements of the Executive Order and subject
to review by the OMB. Under section 3(f) of Executive Order 12866, the
order defines a ``significant regulatory action'' as an action that is
likely to result in a rule (1) having an annual effect on the economy
of $100 million or more, or adversely and materially affecting a sector
of the economy, productivity, competition, jobs, the environment, public
health or safety, or State, local or tribal governments or communities
(also referred to as ``economically significant''); (2) creating serious
inconsistency or otherwise interfering with an action taken or planned
by another agency; (3) materially altering the budgetary impacts of entitlement
grants, user fees, or loan programs or the rights and obligations of recipients
thereof; or (4) raising novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in the
Executive Order. Pursuant to the terms of the Executive Order, it has
been determined that this regulatory action will have an annual effect
on the economy of more than $100 million. Therefore, this action is ``economically
significant'' and subject to OMB review under section 3(f)(4) of Executive
Order 12866. The Secretary accordingly has assessed the potential costs
and benefits of this regulatory action and has determined that the benefits
justify the costs.
Need for Federal Regulatory Action
As noted above,
these interim final regulations are needed to implement two programs created
in the HERA. The ACG program provides need-based grants to encourage students
to complete a rigorous secondary school program of study. The National
SMART Grant Program provides need-based grants to encourage students to
major in certain scientific and technical fields or foreign languages
deemed vital to national security. Section 401A(c)(3)(B)(ii) and (3)(C)(ii)
of the HEA specifically requires the Secretary of Education to issue regulations
implementing these programs. The Secretary had limited discretion in implementing
these grant programs; the number of recipients and aid awarded is largely
driven by statutory eligibility requirements such as that students be
eligible to receive a Federal Pell Grant, be United States citizens, attend
two-or four-year degree-granting institutions on a full-time basis, and,
in some cases, maintain a 3.0 GPA. The Secretary has exercised discretion
in the areas of program eligibility relating to the definition of a rigorous
secondary school program of study in the case of the ACG Program and,
for the National SMART Grant Program, the definition of qualifying fields
of study. In both these cases, the Secretary has regulated to reflect
clear congressional intent.
Benefits
By facilitating
the implementation of these new programs, these interim final regulations
will support the provision of over $4 billion in need-based student aid
over the next five years. The ACG Program will benefit society by providing
an incentive for students to complete a rigorous secondary school program
of study, which research indicates increases the likelihood of successfully
completing postsecondary education. The National SMART Grant Program will
encourage students to major in technical fields or critical foreign languages.
In the case of technical fields, these majors will benefit both national
and individual competitiveness, increasing the nation's economic security.
For foreign languages, increases in the number of fluent speakers of Arabic,
Farsi, Uzbek, and other critical languages would broaden understanding
of important cultures and contribute significantly to ongoing efforts
to combat international terrorism. In addition, awards under both programs
serve to reduce a student's net cost of education. Research indicates
that reduction in a student's cost of education correlates with increased
student persistence and degree attainment. Data consistently show that
postsecondary degree holders have substantially higher lifetime earnings
than high school graduates.
Costs
These programs are
supported with $4.5 billion in mandatory appropriations: $790 million
for fiscal year 2006, $850 million for fiscal year 2007, $920 million
for fiscal year 2008, $960 million for 2009, and $1,010 million for 2010.
Funds not expended in one year may be carried forward to support awards
in the subsequent year. If the estimated number of recipients exceeds
the available funding for a given fiscal year, award levels would be ratably
reduced.
"TABLE 1. -- Estimated Program Participation" OMMITTED (SEE
PDF FOR CHART)
The average awards displayed in Table 1 are less than the statutory maximum
awards due to the cost of attendance limit on ACG and National SMART Grant
awards. In addition, average awards also reflect students who are eligible
for an ACG or National SMART Grant for less than the full award year.
Figures in Table 1 may not add due to rounding. Because these programs
are title IV, HEA programs and eligibility for these programs is linked
to Federal Pell Grant eligibility, participating institutions must already
meet Federal student aid institutional eligibility requirements. In addition,
the delivery system and many program operational requirements for the
new programs are patterned after those institutions are already using
for Federal Pell Grants. Accordingly, institutions wishing to participate
in the new programs have already absorbed most of the administrative costs
related to implementing these interim final regulations. Marginal costs
over this baseline are primarily related to initial, and ongoing eligibility
determinations are minimal. Most data needed to make these determinations,
such as student citizenship, full-time status, major, and GPA, are generally
already available to institutions. The Department is particularly interested
in comments on possible administrative burdens the new programs could
impose on some institutions, especially related to the process of identifying
cognizant authorities, documenting student eligibility, and verifying
documentation considered incomplete or inaccurate.
Assumptions, Limitations,
and Data Sources
Because these interim
final regulations largely restate statutory requirements that would be
self-implementing in the absence of regulatory action, cost estimates
provided above reflect a prestatutory baseline in which the ACG and National
SMART Grant programs do not exist. Given the limited data available, estimates
for 2007-2008 do not assume program benefits will induce increased student
participation. In general, these estimates should be considered preliminary;
they will be reevaluated as actual program data becomes available. Costs
have been quantified for only two years because the Secretary plans to
revise these interim final regulations through negotiated rule-making,
after which more comprehensive cost analyses for subsequent years will
be developed. In developing these estimates, data from the 2004 National
Postsecondary Student Aid Survey was used to derive the percentage of
students meeting initial eligibility requirements for ACG and National
SMART Grant awards, including enrollment status, Federal Pell Grant eligibility,
citizenship, academic major, and GPA. The 1994 National Education Longitudinal
Study, 1996 Beginning Postsecondary Student Survey, and 2000 National
Assessment of Educational Progress High School Transcript Study were used
to derive the percentage of students otherwise eligible for an ACG who
had successfully completed a rigorous secondary school program of study.
All these studies were conducted by the National Center for Education
Statistics.
Regulatory Alternatives
Considered
In defining eligibility
requirements, particularly those related to rigorous secondary school
programs of study, these interim final regulations strike a balance between
complete State discretion, which could create confusion and regional inequalities
and result in overly generous criteria that dramatically reduce award
levels, and an overly prescriptive national determination that would significantly
alter the traditional State role in determining secondary school curricula.
More specifically, in considering the definition of a rigorous secondary
school program of study, the Secretary looked at a variety of combinations
of coursework and other possible measures. For example, at the time of
the release of the President's fiscal year 2007 budget, preliminary estimates
assumed a rigorous program of study would consist of four English, three
social science, three science, three mathematics, and two foreign language
courses. Under this scenario, an estimated 439,000 students would receive
$400 million in ACG awards in 2006-2007--compared with $340 million to
420,000 students under these interim final regulations. In subsequently
considering the recognition of rigorous secondary school programs, the
Secretary determined it would be more appropriate to include as one option
secondary school programs of study with specific coursework requirements,
such as, for mathematics, algebra I and a higher level course such as
algebra II, geometry, or data analysis and statistics, and for science,
at least two years with one year each of biology, chemistry or physics,
as well as an advanced or honors program. In addition, the Secretary included
students who complete a secondary school program and receive specified
scores on the Advanced Placement or International Baccalaureate examinations.
The latter provisions offer additional flexibility to individual students
attending private or home schools. This approach is consistent with the
programs' statutory purpose of creating incentives for certain student
behaviors. To achieve this purpose, the grant level must be large enough
to provide a meaningful incentive, yet at the same time, program flexibility
must be sufficient to allow States and participating institutions to recognize
broad differences in secondary school and higher education academic structures.
Elsewhere in this SUPPLEMENTARY INFORMATION section we identify and explain
burdens specifically associated with information collection requirements.
See the heading Paperwork Reduction Act of 1995.
Accounting Statement
As required by OMB
Circular A-4 (available at http://www.Whitehouse.gov/omb/Circulars/a004/a-4.pdf
), in Table 2 below, we have prepared an accounting statement showing
the classification of the expenditures associated with the provisions
of these interim final regulations. This table provides our best estimate
of the increase in Federal student aid payments as a result of these interim
final regulations. All expenditures are classified as transfers to postsecondary
students.
"TABLE 2. Accounting
Statement: Classification of Estimated Exenditures" OMMITTED (SEE
PDF FOR CHART)
Waiver of Proposed
Rulemaking
Under the Administrative
Procedure Act (APA) (5 U.S.C.553), the Department is generally required
to publish a noticed of proposed rulemaking and provide the public with
an opportunity to comment on proposed regulations prior to establishing
a final rule. In addition, all Department regulations for programs authorized
under the title IV, HEA programs are subject to the negotiated rulemaking
requirements of section 492 of the HEA. /1/ However, both the APA and
the HEA provide for exemptions from these rulemaking requirements. The
APA provides that an agency is not required to conduct notice and comment
rulemaking when the agency for good cause finds that notice and public
procedures thereon are impracticable, unnecessary or contrary to the public
interest. Similarly, section 492 of the HEA provides that the secretary
is not required to conduct negotiated rulemaking for title IV, HEA program
if the Secretary determines that applying that requirement is impracticable,
unnecessary or contrary to the public interest within the meaning of the
APA.
\1\ Section 492 provides
specifically that any regulations issued for the title IV, HEA programs
shall be subject to negotiated rulemaking to obtain the advice of and
recommendations from individuals and groups involved in the student financial
assistance programs.
Although these regulations
are subject to the APA's notice-and- comment and the HEA's negotiated
rulemaking requirements, the Secretary has determined that it would be
impracticable to conduct either negotiated rulemaking or notice-and-comment
rulemaking to implement the ACG and National SMART Grant programs for
the 2006-2007 award year. Waiver of rulemaking under the impracticability
exemption in the APA and HEA is warranted because it would not be possible
for the Department to comply with the APA's and HEA's rulemaking mandates
and execute its statutory duties under the HERA.\2\ The Department cannot
both implement the ACG and National SMART Grant programs, including making
awards to eligible students, by the beginning of the 2006-2007 award year,
and conduct negotiated or notice-and-comment rulemaking for the regulations
for these programs. \2\ See Riverbend Farms, Inc. v. Madigan, 958 F.2d
1479, 1484, n.2 (9th Cir. 1992). The term ``impracticable'' has also been
described as meaning ``a situation in which the due and required execution
of the agency functions would be unavoidably prevented by its undertaking
rulemaking proceedings. Zhang v. Slattery, 55 F.3d 732, 746 (2d Cir. 1995)
citing National Nutritional Foods Ass'n v. Kennedy, 572 F.2d 377, 385
(2d Cir. 1978) citing S. Rep. No. 752, 79th Cong., 1st Sess. (1945).
In the HERA, enacted on February 8, 2006, Congress appropriated $790 million
for the Department to use in awarding ACG and National SMART Grants to
students for the 2006-2007 award year, which begins on July 1, 2006. The
Department therefore had a very short, less than five-month window to
issue regulations, plan the administration of these programs, and begin
the process of making awards for the 2006- 2007 award year. Even on an
extremely expedited timeline, the Department could not feasibly conduct
negotiated or notice-and-comment rulemaking and then promulgate final
regulations in time to make awards for the 2006-2007 award year. Negotiated
rulemaking requires the Department to solicit nominations for negotiators
to participate in the negotiated rulemaking sessions, select a committee
of negotiators, conduct a series of negotiating sessions, publish a notice
of proposed rulemaking, review public comments, and issue final regulations.
Normally, this process would take at least 12 months and possibly longer.
In addition to developing and issuing these regulations, there are a number
of other steps necessary for the Department to implement the ACG and National
SMART Grant programs for the 2006-2007 award year that make rulemaking
impracticable. Implementation requires the Department to make a number
of changes to the FAFSA and the Department's financial aid systems so
that students can apply for and receive ACG and National SMART Grants.
For the ACG Program, the Secretary also must recognize at least one rigorous
secondary school program of study in each State, which will include considerations
of State proposals for the recognition of their programs. To implement
the National SMART Grant Program, the Secretary must consult with the
Director of National Intelligence to establish a list of critical foreign
languages. The process of completing all of these steps and developing
program regulations through negotiated or notice-and-comment rulemaking
requires far more time than that available to the Department in order
to make awards to students for the upcoming 2006-2007 award year. Based
upon this information, and in order to make timely grant awards for the
2006-2007 award year, the Secretary is issuing these interim final regulations
without first conducting negotiated rulemaking or publishing proposed
regulations for public comment. Although the Department is adopting these
regulations on an interim final basis for the 2006-2007 award year, the
Department requests public comment on these regulations for the 2007-2008
award year. After consideration of public comments, the Secretary will
publish final regulations for the 2007-2008 award year. Section 482 of
the HEA requires that any title IV regulations that have not been published
in final form by November 1 prior to the start of an award year cannot
become effective until the beginning of the second award year following
the November 1 date. Therefore, the Secretary has determined that although
it is feasible to conduct notice-and-comment rulemaking for the 2007-2008
award year, it would be impracticable to conduct negotiated rulemaking.
As discussed above, the negotiated rulemaking process can take at least
12 months, if not longer, to complete final regulations. Therefore, it
would not be feasible for the Department both to conduct a negotiated
rulemaking process and have amended regulations for the 2007-2008 award
year in place by November 1, 2006, as would be required under section
482 of the HEA. The Secretary does intend to begin the negotiated rulemaking
process later this year. The negotiated rulemaking process could further
amend the regulations as appropriate for the 2008-2009 award year and
subsequent years.
Regulatory Flexibility
Act Certification
The Secretary certifies
these regulations will not have a significant economic impact on a substantial
number of small entities. Entities that would be affected by these regulations
are States, SEAs, LEAs, and institutions of higher education. States,
SEAs, and LEAs are not defined as ``small entities'' in the Regulatory
Flexibility Act. The small entities affected by these regulations are
institutions of higher education receiving Federal funds under these programs.
Roughly 1,000 institutions of higher education eligible to participate
in ACG and National SMART Grant Programs meet the definition of a ``small
entity'' in that they have annual revenues of $6.5 million or less. The
regulations will not have a significant economic impact on these institutions
of higher education; these institutions must already comply with the eligibility
requirements related to participating in the Federal Pell Grant program
in order to participate in the ACG and National SMART Grant Programs.
Additional, program-specific requirements included in these regulations
will impose only minimal additional requirements to ensure the proper
expenditure of program funds.
Paperwork Reduction
Act of 1995
Sections 691.12,
691.15, 691.16, 691.82, and 691.83 contain information collection requirements.
As required by the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)),
the Department of Education has submitted a copy of these sections to
the Office of Management and Budget (OMB) for its review.
Collection of Information:
Academic Competitiveness Grant (ACG) Program and National Science and
Mathematics Access to Retain Talent Grant (National SMART Grant) Program.
Section 691.12--Student
Application
This new section
will be included for approval under OMB control number 1845-0001. These
interim final regulations allow a student to provide information that
he or she completed a rigorous secondary school program of study to qualify
for an ACG. The Secretary expects to collect this information when the
student applies for assistance under the title IV, HEA programs using
an addendum to the FAFSA. Potentially eligible students completing the
FAFSA will be directed to a Web site that allows the student to select
the applicable rigorous secondary school programs of study from a list
of programs recognized by the Secretary.
The student's information is then transmitted on the student's SAR and
the ISIR to the institutions listed on the student's FAFSA. There is additional
burden associated with a student going to the Web site and responding
to a few additional FAFSA questions to select their rigorous secondary
school programs of study from a list of programs recognized by the Secretary.
The public is invited to comment on the burden associated with this collection.
[[Page 38001]]
Section 691.15--Documenting a Student's Completion of a Rigorous Secondary
School Program of Study
Burden on student
applicants who apply for an ACG or National SMART Grant under this new
section will be included for approval under OMB control number 1845-0001.
Burden on institutions for collecting documentation and evaluating a student's
eligibility for an ACG or National SMART Grant under this new section
will be included for approval under OMB control number 1845-0039. Under
these interim final regulations, an institution must document a student's
completion of a rigorous secondary school program of study using documentation
from the cognizant authority for qualifying secondary school program of
study. The documentation from the cognizant authority may be provided
to the institution by the student or directly to the institution by the
cognizant authority. Most institutions likely to enroll ACG and National
SMART Grant recipients already have the necessary documentation of a student's
completion of a rigorous secondary school program of study as part of
their admissions process. A small number of institutions will need to
collect additional documentation. Similarly, existing academic evaluations
performed by most institutions will suffice to determine a student's completion
of a rigorous secondary school program of study. However, some institutions
will need to perform more extensive evaluations. The public is invited
to comment on the burden associated with this collection.
Section 691.16--Recognition
of a Rigorous Secondary School Program of Study
This new section
will be included for approval under a new OMB information collection control
number. These interim final regulations allow States to propose additional
rigorous secondary school programs of study for recognition by the Secretary.
The Secretary expects to collect this information and recognize additional
rigorous secondary school programs of study annually prior to the commencement
of the next award year for each State that submits a proposal.
Section 691.82--Maintenance
and Retention of Records
This new section
will be included for approval under OMB control number 1845-0039.Under
these interim final regulations, an institution must include in its maintenance
and retention of records, documentation collected to determine the eligibility
of a student for an ACG or National SMART Grant. Most institutions already
maintain the required documentation (e.g., high school transcripts) that
they use for other purposes. However, for a limited number of institutions
that do not normally collect documentation sufficient for the purposes
of these programs, additional collection and maintenance will be required.
Section 691.83--Submission
of Reports
This new section
will be included for approval under OMB control number 1845-0039. The
interim final regulations provide that institutions requesting funds from
the Secretary under the ACG and National SMART Grant programs must submit
Payment Data. We expect some additional burden to institutions. However,
because institutions will be reporting Payment Data in the same process
as is used for the Federal Pell Grant Program and for the same students,
the increased burden is expected to be minimal. 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 FOR FURTHER INFORMATION
CONTACT section of this preamble.
We consider your comments on these proposed collections of information
in--
-Deciding whether
the proposed collections are necessary for the proper performance of our
functions, including whether the information will have practical use;
- Evaluating the accuracy of our estimate of the burden of the proposed
collections, including the validity of our methodology and assumptions;
- Enhancing the quality, usefulness, and clarity of the information we
collect; and
-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 collections of information
contained in these 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 receives
the comments within 30 days of publication.
Intergovernmental
Review
This 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
Based on our own
review, we have determined that these interim final regulations do not
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, as well as all other Department of Education documents published
in the Federal Register, in text or Adobe Portable Document Format (PDF)
on the Internet at the following site: http://www.ed.gov/news/fedregister/index.html.
To use PDF you must have Adobe Acrobat Reader, which is available free
at this site. 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.
1. You may also view
this document in text or PDF at the following site: http://ifap.ed.gov/IFAPWebApp/currentFRegistersPag.jsp.
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 Numbers: 84.375 Academic Competitiveness
Grants; 84.376 SMART Grants)
List of Subjects
in 34 CFR Parts 668, 674, 675, 676, 682, 685, 690, and 691
Colleges and universities,
Elementary and secondary education, Grant programs--education, Student
aid.
Dated: June 27, 2006.
Margaret Spellings,
Secretary of Education.
0 For the reasons
discussed in the preamble, the Secretary amends parts 668, 674, 675, 676,
682, 685, and 690 of, and adds a new part 691 to, title 34 of the Code
of Federal Regulations as follows:
PART 668--STUDENT
ASSISTANCE GENERAL PROVISIONS
0 1. The authority
citation for part 668 continues to read as follows: Authority: 20 U.S.C.
1001, 1002, 1003, 1085, 1088, 1091, 1092, 1094, 1099c, and 1099c-1, unless
otherwise noted.
0 2. Section 668.1
is amended by:
0 A. Revising paragraph
(c)(2).
0 B. In paragraph
(c)(9), removing the word ``and''.
0 C. In paragraph
(c)(10), removing the punctuation ``.'' at the end of the paragraph and
adding, in its place, the words ``; and''.
0 D. In paragraph
(c), adding new paragraph (11) to read as follows:
Sec. 668.1 Scope.
* * * * *
(c) * * *
(2) The Academic
Competitiveness Grant (ACG) Program (20 U.S.C. 1070a-1; 34 CFR part 691);
(11) The National Science and Mathematics Access to Retain Talent Grant
(National SMART Grant) Program (20 U.S.C. 1070a-1; 34 CFR part 691).
0 3. Section 668.2(b)
is amended by adding, in alphabetical order, definitions of ``Academic
Competitiveness Grant (ACG) Program'' and ``National Science and Mathematics
Access to Retain Talent Grant (National SMART Grant) Program'' and revising
the definition of ``Federal Pell Grant Program'' to read as follows:
Sec. 668.2 General
definitions.
* * * * *
(b) * * *
Academic Competitiveness
Grant (ACG) Program: A grant program authorized by Title IV-A-1 of the
HEA under which grants are awarded during the first and second academic
years of study to eligible financially needy undergraduate students who
successfully complete rigorous secondary school programs of study. (Authority:
20 U.S.C. 1070a-1)
* * * * *
Federal Pell Grant Program: A grant program authorized by Title IV- A-1
of the HEA under which grants are awarded to help financially needy students
meet the cost of their postsecondary education. (Authority: 20 U.S.C.
1070a)
* * * * *
National Science
and Mathematics Access to Retain Talent Grant (National SMART Grant) Program:
A grant program authorized by Title IV- A-1 of the HEA under which grants
are awarded during the third and fourth academic years of study to eligible
financially needy undergraduate students pursuing eligible majors in the
physical, life, or computer sciences, mathematics, technology, or engineering,
or foreign languages determined to be critical to the national security
of the United States. (Authority: 20 U.S.C. 1070a-1)
* * * * *
0 4. Section 668.8
is amended by:
0 A. Revising the
introductory text to paragraph (h) and paragraph (h)(2).
0 B. Revising the authority citation following paragraph (l). The revisions
read as follows:
Sec. 668.8 Eligible
programs.
* * * * *
(h) Eligibility for
Federal Pell Grant, ACG, National SMART Grant, and FSEOG Programs. In
addition to satisfying other relevant provisions of the section--
* * * * *
(2) An educational
program qualifies as an eligible program for purposes of the ACG, National
SMART Grant, and FSEOG programs only if the educational program is an
undergraduate program.
* * * * *
(l) * * *
* * * * * (Authority: 20 U.S.C. 1070a, 1070a-1, 1070b, 1070c-1, 1070c-2,
1085, 1087aa-1087hh, 1088, 1091, and 42 U.S.C. 2753)
0 5. Section 668.19(a)(3)
is revised to read as follows:
Sec. 668.19 Financial
aid history.
(a) * * *
(3) For the award year for which a Federal Pell Grant, an ACG, or a National
SMART Grant is requested, the student's Scheduled Federal Pell Grant,
ACG, or National SMART Grant Award and the amount of Federal Pell Grant,
ACG, or National SMART Grant funds disbursed to the student;
* * * * *
0 6. Section 668.21
is amended by revising the section heading and paragraph (a)(1) to read
as follows: Sec. 668.21 Treatment of Federal Perkins Loan, FSEOG, Federal
Pell Grant, ACG, and National SMART Grant program funds if the recipient
withdraws, drops out, or is expelled before his or her first day of class.
(a)(1) If a student
officially withdraws, drops out, or is expelled before his or her first
day of class of a payment period, all funds paid to the student for that
payment period for institutional or noninstitutional costs under the Federal
Pell Grant, ACG, National SMART Grant, FSEOG, and Federal Perkins Loan
programs are an overpayment.
* * * * *
0 7. Section 668.24
is amended by:
0 A. In paragraph
(e)(1) introductory text, removing the word ``or''; and by removing the
word ``Program'' and adding, in its place, the words ``, ACG, or National
SMART Grant Program''; and
0 B. Revising the authority citation to read as follows:
Sec. 668.24 Record
retention and examinations.
* * * * *
(Authority: 20 U.S.C. 1070a, 1070a-1, 1070b, 1078, 1078-1, 1078-2, 1078-3,
1082, 1087, 1087a et seq., 1087cc, 1087hh, 1088, 1094, 1099c, 1141, 1232f;
42 U.S.C. 2753; and section 4 of Pub. L. 95-452, 92 Stat. 1101-1109)
Sec. 668.26 [Amended]
0 8. Section 668.26
is amended by:
0 A. In paragraph (d)(1) introductory text, removing the words ``or PAS''
and adding, in their place, the words ``, ACG, or National SMART Grant''.
0 B. In paragraph (e)(1), removing the words ``and PAS programs'' and
adding, in their place, the words ``, ACG, and National SMART Grant programs''.
0 9. Section 668.32 is amended by:
0 A. In paragraph (c)(1), removing the words ``FSEOG Program'' and adding,
in their place, the words ``ACG, National SMART Grant, and FSEOG programs''.
0 B. In paragraph (k)(6), removing the word ``and''.
0 C. Redesignating paragraph (k)(7)as paragraph (k)(8) and adding a new
paragraph (k)(7) to read as follows:
Sec. 668.32 Student
eligibility--general.
* * * * *
(k) * * *
(7) 34 CFR 691.75 for the ACG and National SMART Grant programs; and
* * * * *
0 10. Section 668.33
is amended by:
0 A. In the introductory text to paragraph (a), removing the words ``paragraph
(b)'' and adding, in their place, the words ``paragraphs (b) and (c)''.
0 B. Redesignating paragraphs (c)(1) and (c)(2) as paragraphs (d)(1) and
(d)(2), respectively, and adding a new paragraph (c) to read as follows:
Sec. 668.33 Citizenship
and residency requirements.
* * * * *
(c) Only a student who is a citizen of the United States is eligible to
receive
[[Page 38003]]
funds under the
ACG and National SMART Grant programs.
* * * * *
0 11. Section 668.35 is amended by redesignating paragraph (g)(2) as paragraph
(g)(4) and adding new paragraphs (g)(2) and (g)(3) to read as follows:
Sec. 668.35 Student
debts under the HEA and to the U.S.
* * * * *
(g) * * *
(2) A student is not liable for an ACG overpayment received in an award
year if--
(i) The institution can eliminate that overpayment by adjusting subsequent
title IV, HEA program (other than Federal Pell Grant, ACG, or National
SMART Grant) payments in that same award year; or
(ii) The institution cannot eliminate the overpayment under paragraph
(g)(2)(i) of this section but can eliminate that overpayment by adjusting
subsequent ACG payments in that same award year.
(3) A student is not liable for a National SMART Grant overpayment received
in an award year if--
(i) The institution can eliminate that overpayment by adjusting subsequent
title IV, HEA program (other than Federal Pell Grant, ACG, or National
SMART Grant) payments in that same award year; or
(ii) The institution cannot eliminate the overpayment under paragraph
(g)(3)(i) of this section but can eliminate that overpayment by adjusting
subsequent National SMART Grant payments in that same award year.
* * * * *
Sec. 668.138[Amended]
0 12. Section 668.138
is amended in paragraph (a) by removing the word ``or'' the first time
it appears, and adding the words ``, ACG, or National SMART Grant'' immediately
after the words ``Federal Pell Grant''.
Sec. 668.139 [Amended]
0 13. Section 668.139
is amended in paragraph (c) by adding the words ``ACG, National SMART
Grant, FSEOG'' immediately after the words ``Federal Pell Grant,''; and
removing the words ``Federal SEOG''.
Sec. 668.161 [Amended]
0 14. Section 668.161(a)(3)(i)
is amended by adding the words ``ACG, National SMART Grant,'' immediately
after the words ``Federal Pell Grant,''.
Sec. 668.162 [Amended]
0 15. Section 668.162(d)(1)
is amended by adding the words ``ACG, National SMART Grant,'' immediately
after the words ``Federal Pell Grant,''.
Sec. 668.163 [Amended]
0 16. Section 668.163
is amended by:
0 A. In paragraph (c)(2), adding the words ``ACG, National SMART Grant,''
immediately after the words ``Federal Pell Grant,''.
0 B. In paragraph (c)(3) introductory text, adding the words ``ACG, National
SMART Grant,'' immediately after the words ``Federal Pell Grant,''.
0 C. In paragraph (c)(4), adding the words ``ACG, National SMART Grant,''
immediately after the words ``Federal Pell Grant,''.
Sec. 668.164[Amended]
0 17. Section 668.164
is amended by:
0 A. In paragraph (g)(1)(ii), adding the words ``ACG, National SMART Grant,''
immediately after the words ``Federal Pell Grant,''.
0 B. In paragraph (g)(4)(iv), adding the words ``, an ACG, or a National
SMART Grant'' immediately after the words ``Federal Pell Grant''.
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(a)
is amended by adding, in alphabetical order, the terms ``Academic Competitiveness
Grant (ACG) Program'' and ``National Science and Mathematics Access to
Retain Talent Grant (National SMART Grant) Program''.
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(a) is amended by adding, in alphabetical order, the terms ``Academic
Competitiveness Grant (ACG) Program'' and ``National Science and Mathematics
Access to Retain Talent Grant (National SMART Grant) Program''.
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(a)
is amended by adding, in alphabetical order, the terms ``Academic Competitiveness
Grant (ACG) Program'' and ``National Science and Mathematics Access to
Retain Talent Grant (National SMART Grant) Program''.
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 in paragraph (a)(1), adding, in alphabetical order, the
terms ``Academic Competitiveness Grant (ACG) Program'' and ``National
Science and Mathematics Access to Retain Talent Grant (National SMART
Grant) Program''.
PART 685--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM
0 26. The authority
citation for part 685 continues to read as follow:
Authority: 20 U.S.C. 1087a et seq., unless otherwise noted.
Sec. 685.102 [Amended]
0 27. Section 685.102
is amended by in paragraph (a)(1), adding, in alphabetical order, the
terms ``Academic Competitiveness Grant (ACG) Program'' and ``National
Science and Mathematics Access to Retain Talent Grant (National SMART
Grant) Program''.
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.
0 29. Section 690.2 is amended by:
0 A. In paragraph (a), removing the terms ``Accredited'', ``Educational
program'', ``Eligible institution'', ``Recognized equivalent of high school
diploma'', and ``Regular student''.
0 B. In paragraph (b), adding, in alphabetical order, the terms ``Academic
Competitiveness Grant (ACG) Program'',
[[Page 38004]]
``Federal Family
Education Loan (FFEL) Program'', ``National Science and Mathematics Access
to Retain Talent Grant (National SMART Grant) Program'', and ``William
D. Ford Federal Direct Loan Program''.
0 C. In paragraph (b), removing the term ``Student eligibility''.
0 D. In paragraph (c), adding, in alphabetical order, a definition of
``Eligible student'' to read as follows:
Sec. 690.2 General
definitions.
* * * * *
(c) * * *
Eligible student: An eligible student as described in 34 CFR part 668,
subpart C.
* * * * *
0 30. Section 690.7 is amended by redesignating paragraphs (a), (b), (c),
and (d) as paragraphs (b), (c), (d), and (e) respectively, and adding
a new paragraph (a) to read as follows:
Sec. 690.7 Institutional
participation.
(a) An institution
may not participate in the Federal Pell Grant Program if the institution--
(1) Offers at least one eligible program for purposes of the ACG Program,
as defined in 34 CFR 691.2(d), but does not participate in the ACG Program;
or
(2) Offers at least one eligible program for purposes of the National
SMART Grant Program, as defined in 34 CFR 691.2(d), but does not participate
in the National SMART Grant Program.
* * * * *
Sec. 690.8 [Amended]
0 31. Section 690.8
is amended by capitalizing the first word in paragraph (b)(3).
0 32. Section 690.63 is amended by:
0 A. In paragraph (c)(3), revising the first equation as set forth below.
0 B. In paragraph (d)(2), adding the word ``and'' after the punctuation
``;''.
0 C. In paragraph (d)(3), removing ``; and'' following the equation.
0 D. Removing paragraph (d)(4).
0 E. In paragraph (e)(2), after the words ``the lesser of--'', adding
``(i)'' immediately before the equation.
Sec. 690.63 Calculation
of a Federal Pell Grant for a payment period.
* * * * *
(c) * * *
(3) * * *
The number of weeks of instructional time offered in a program in the
fall and spring semesters or trimesters
___________________________________________________________________________________
The number of weeks in the program's academic year
* * * * *
0 33. Section 690.83 is amended by:
0 A. In paragraph (a)(2), removing the word ``contain'' and adding, in
its place, the word ``contains''.
0 B. Revising paragraphs (b)(1) and (b)(2) to read as set forth below.
0 C. In paragraph (c), adding a comma after ``668.84''.
Sec. 690.83 Submission
of reports.
* * * * *
(b)(1) An institution shall report to the Secretary any change in the
amount of a grant for which a student qualifies including any related
Payment Data changes by submitting to the Secretary the student's Payment
Data that discloses the basis and result of the change in award for each
student. The institution shall submit the student's Payment Data reporting
any change to the Secretary by the reporting deadlines published by the
Secretary in the Federal Register.
(2) An institution shall submit, in accordance with deadline dates established
by the Secretary, through publication in the Federal Register, other reports
and information the Secretary requires and shall comply with the procedures
the Secretary finds necessary to ensure that the reports are correct.
* * * * *
0 34. A new part 691 is added to read as follows:
PART 691--ACADEMIC
COMPETITIVENESS GRANT (ACG) AND NATIONAL SCIENCE AND MATHEMATICS ACCESS
TO RETAIN TALENT GRANT (NATIONAL SMART GRANT) PROGRAMS
Subpart A--Scope, Purpose, and General Definitions
Sec.
691.1 Scope and purpose.
691.2 Definitions.
691.3-691.5 [Reserved]
691.6 Duration of student eligibility--undergraduate course of study.
691.7 Institutional participation.
691.8 Enrollment status for students taking regular and correspondence
courses.
691.9-691.10 [Reserved]
691.11 Payments from more than one institution.
Subpart B--Application
Procedures
691.12 Application.
691.13-691.14 [Reserved]
691.15 Eligibility to receive a grant.
691.16 Recognition of a rigorous secondary school program of study.
691.17 Determination of eligible majors.
Subparts C-E [Reserved]
Subpart F--Determination
of Awards
691.6 1 Submission
process and deadline for a Student Aid Report or Institutional Student
Information Record.
691.62 Calculation of a grant.
691.63 Calculation of a grant for a payment period.
691.64 Calculation of a grant for a payment period which occurs in two
award years.
691.65 Transfer student: attendance at more than one institution during
an academic year.
Subpart G--Administration
of Grant Payments
691.71 Scope.
691.72-691.74 [Reserved]
691.75 Determination of eligibility for payment.
691.76 Frequency of payment.
691.77 [Reserved]
691.78 Method of disbursement--by check or credit to a student's account.
691.79 Liability for and recovery of grant overpayments.
691.80 Redetermination of eligibility for a grant award.
691.81 Fiscal control and fund accounting procedures.
691.82 Maintenance and retention of records. 691.83 Submission of reports.
Authority: 20 U.S.C. 1070a-1, unless otherwise noted.
Subpart A--Scope,
Purpose, and General Definitions
Sec. 691.1 Scope
and purpose.
(a) The ACG Program awards grants to help eligible financially needy first-
and second-year undergraduate students, who complete rigorous secondary
school programs of study, meet the cost of their postsecondary education.
(b) The National SMART Grant Program awards grants to help eligible financially
needy third- and fourth-year undergraduate students who are pursuing eligible
majors in the physical, life, or computer sciences, mathematics, technology,
or engineering or a critical foreign language meet the cost of their postsecondary
education.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.2 Definitions.
(a) The following definitions used in this part are in the regulations
for Institutional Eligibility under the Higher Education Act of 1965,
as amended, 34 CFR part 600:
Award year
Clock hour
Correspondence course
Eligible institution
Regular student
Secretary
State
Title IV, HEA program
[[Page 38005]]
(b) The following
definitions used in this part are in subpart A of the Student Assistance
General Provisions, 34 CFR part 668:
Academic year
Enrolled
Expected family contribution
Federal Pell Grant Program
Full-time student
HEA Payment period
(c) The following definitions used in this part are in 34 CFR part 77:
Local educational agency (LEA) State educational agency (SEA)
(d) Other terms used in this part are: ACG Scheduled Award: The amount
of an ACG that would be paid to a full-time student for a full academic
year.
Eligible major: A major, as identified by the Secretary under Sec. 691.17,
in one of the physical, life, or computer sciences, mathematics, technology,
engineering, or a critical foreign language. Eligible program: An eligible
program as defined in 34 CFR 668.8 that--
(1) For purposes of the ACG Program, leads to an associate's degree or
a bachelor's degree; is a two-academic-year program acceptable for full
credit toward a bachelor's degree; or is a graduate degree program that
includes at least 3 academic years of undergraduate education; or
(2) For purposes of the National SMART Grant Program, leads to a bachelor's
degree in an eligible major or is a graduate degree program in an eligible
major that includes at least 3 academic years of undergraduate education.
Institutional Student Information Record (ISIR): An electronic record
that the Secretary transmits to an institution that includes an applicant's--
(1) Personal identification information;
(2) Application data used to calculate the applicant's EFC; and
(3) EFC.
National SMART Grant Scheduled Award: The amount of a National SMART Grant
that would be paid to a full-time student for a full academic year.
Payment Data: An electronic record that is provided to the Secretary by
an institution showing student disbursement information.
Student Aid Report (SAR): A report provided to an applicant by the Secretary
showing the amount of his or her expected family contribution.
Undergraduate student: A student enrolled in an undergraduate course of
study at an institution of higher education who--
(1) Has not earned a baccalaureate or first professional degree; and
(2) Is in an undergraduate course of study which usually does not exceed
4 academic years, or is enrolled in a 4 to 5 academic year program designed
to lead to a first degree. A student enrolled in a program of any other
length is considered an undergraduate student for only the first 4 academic
years of that program.
Valid Institutional Student Information Record (valid ISIR): An ISIR on
which all the information used in calculating the applicant's expected
family contribution is accurate and complete as of the date the application
is signed.
Valid Student Aid Report (valid SAR): A Student Aid Report on which all
of the information used in calculating the applicant's expected family
contribution is accurate and complete as of the date the application is
signed.
(Authority: 20 U.S.C. 1070a-1)
Sec. Sec. 691.3-691.5
[Reserved]
Sec. 691.6 Duration
of student eligibility--undergraduate course of study.
(a) A student is
eligible to receive up to one ACG Scheduled Award during each of the student's
first and second academic years of eligible program.
(b) A student is eligible to receive up to one National SMART Grant Scheduled
Award during each of the student's third and fourth academic years of
eligible program. (c) A student may not receive more than two ACG Scheduled
Awards and two National SMART Grant Scheduled Awards.
(d) For an eligible student enrolled in a summer term of an eligible program
for which the institution determines payments under Sec. 691.63(b) and
(c), the student's summer term is considered to be--
(1) For an eligible program offered in semesters or trimesters with a
single summer term that provides at least 12 semester or trimester hours
of coursework, one-half of an academic year in weeks of instructional
time under Sec. 691.63(b)(3)(i) and (c)(4)(i), or one- third of an academic
year in weeks of instructional time under Sec. 691.63(b)(3)(ii) and (c)(4)(ii);
or
(2) For an eligible program offered in quarters with a single summer term
that provides at least 12 quarter hours of coursework, one- third of an
academic year in weeks of instructional time under Sec. 691.63(b)(3)(i)
and (c)(4)(i), or one-fourth of an academic year in weeks of instructional
time under Sec. 691.63(b)(3)(ii) and (c)(4)(ii).
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.7 Institutional
participation.
(a) An institution
that offers one or more eligible programs, as defined in Sec. 691.2(d),
for purposes of the ACG Program, and that participates in the Federal
Pell Grant Program under 34 CFR part 690 must participate in the ACG Program.
(b) An institution that offers one or more eligible programs, as defined
in Sec. 691.2(d), for purposes of the National SMART Grant Program, and
that participates in the Federal Pell Grant Program under 34 CFR part
690 must participate in the National SMART Grant Program.
(c) If an institution begins participation in the ACG or National SMART
Grant Program during an award year, a student enrolled and attending that
institution is eligible to receive a grant under this part for the payment
period during which the institution begins participation and any subsequent
payment period.
(d) If an institution becomes ineligible to participate in the ACG or
National SMART Grant Program during an award year, a student who was eligible
for a grant under Sec. 691.15 who was attending the institution and who
submitted a valid SAR to the institution, or for whom the institution
obtained a valid ISIR, before the date the institution became ineligible
is paid a grant for that award year for--
(1) The payment periods that the student completed before the institution
became ineligible; and
(2) The payment period in which the institution became ineligible.
(e)(1) If an institution loses its eligibility to participate in the Federal
Pell Grant Program under the provisions of subpart M of 34 CFR part 668,
it also loses its eligibility to participate in the ACG or National SMART
Grant Program for the same period of time.
(2) That loss of eligibility must be in accordance with the provisions
of 34 CFR 668.187.
(f) An institution that becomes ineligible shall, within 45 days after
the effective date of loss of eligibility, provide to the Secretary--
(1) The name of each eligible student under Sec. 691.15 who, during the
award year, submitted a valid SAR to the institution or for whom it obtained
a valid ISIR before it became ineligible;
(2) The amount of funds paid to each grant recipient for that award year;
(3) The amount due each student eligible to receive a grant through the
end of the payment period during which the institution became ineligible;
and
(4) An accounting of the ACG or National SMART Grant Program expenditures
for that award year to the date of termination. (Authority: 20 U.S.C.
1070a-)
Sec. 691.8 Enrollment
status for students taking regular and correspondence courses.
(a) If, in addition to regular coursework, a student takes correspondence
courses from either his or her own institution or another institution
having an agreement for this purpose with the student's institution, the
correspondence work may be included in determining the student's enrollment
status to the extent permitted under paragraph (b) of this section.
(b) Except as noted in paragraph (c) of this section, the correspondence
work that may be included in determining a student's enrollment status
is that amount of work that--
(1) Applies toward a student's degree or is remedial work taken by the
student to help in his or her eligible program;
(2) Is completed within the period of time required for regular coursework;
and
(3) Does not exceed the amount of a student's regular coursework for the
payment period for which the student's enrollment status is being calculated.
(c) A student taking correspondence courses is considered a full- time
student if--
(1) The student is taking coursework that is commensurate with the institution's
standard for full-time students; and
(2) The student's noncorrespondence coursework constitutes at least one-half
of the institution's required minimum coursework for full-time students.
(Authority: 20 U.S.C.1070a-1)
Sec. Sec. 691.9-691.10
[Reserved]
Sec. 691.11 Payments
from more than one institution.
A student is not
entitled to receive grant payments under this part concurrently from more
than one institution. A student may only receive an ACG or a National
SMART Grant at the same institution from which the student receives his
or her Federal Pell Grant award.
(Authority: 20 U.S.C. 1070a-1)
Subpart B--Application
Procedures
Sec. 691.12 Application.
(a) As the first
step to receiving a grant under this part, a student shall apply on an
approved application form to the Secretary to have his or her expected
family contribution calculated and to determine the student's Federal
Pell Grant eligibility. A copy of this form is not acceptable.
(b)(1) The student shall provide any information requested by the Secretary
in addition to the information necessary to establish eligibility for
a Federal Pell Grant.
(2) The additional information may include, but is not limited to, information
about the rigorous secondary school program of study completed by a student
applying for an ACG.
(c) The student shall submit an application to the Secretary by--
(1) Providing the application form, signed by all appropriate family members,
to the institution which the student attends or plans to attend so that
the institution can transmit the application information to the Secretary
electronically; or
(2) Sending an approved application form to the Secretary.
(d) The student shall provide the address of his or her residence unless
the student is incarcerated and the educational institution has made special
arrangements with the Secretary to receive relevant correspondence on
behalf of the student. If such an arrangement is made, the student shall
provide the address indicated by the institution.
(e) For each award year, the Secretary, through publication in the Federal
Register, establishes deadline dates for submitting this application and
additional information and for making corrections to the information provided.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.13-691.14
[Reserved]
Sec. 691.15 Eligibility
to receive a grant.
(a) General. A student
who meets the requirements of 34 CFR part 668, Subpart C, is eligible
to receive an ACG or a National SMART Grant if the student--
(1) Is a U.S. citizen;
(2) Is receiving a Federal Pell Grant disbursement for the same payment
period; and
(3) Is enrolled full-time.
(b) ACG Program. (1) A student is eligible to receive an ACG if the student--
(i) Meets the eligibility requirements in paragraph (a) of this section;
(ii) For the first academic year of his or her eligible program--
(A) Has successfully completed, after January 1, 2006, a rigorous secondary
school program of study recognized by the Secretary under Sec. 691.16;
and
(B) Has not previously been enrolled as a regular student in a program
of undergraduate education;
(iii) For the second academic year of his or her eligible program-- (A)
Has successfully completed, after January 1, 2005, a rigorous secondary
school program of study recognized by the Secretary under Sec. 691.16;
and
(B) Has successfully completed the first academic year of his or her eligible
program; and
(C) For the first academic year of his or her eligible program, obtained
a grade point average (GPA) of at least 3.0 or higher on a 4.0 scale,
or the equivalent, consistent with other institutional measures for academic
and title IV, HEA program purposes.
(2)(i) An institution must document a student's completion of a rigorous
secondary school program of study under paragraphs (b)(1)(ii)(A) and (b)(1)(iii)(A)
of this section using--
(A) Documentation provided directly to the institution by the cognizant
authority; or
(B) Documentation from the cognizant authority provided by the student.
(ii) If an institution has reason to believe that the documentation provided
by the student under paragraph (b)(2)(i)(B) of this section is inaccurate
or incomplete, the institution shall confirm the student's completion
of a rigorous secondary school program of study by using documentation
provided directly to the institution by the cognizant authority.
(3) For purposes of paragraph (b)(2) of this section--
(i) A cognizant authority includes, but is not limited to--
(A) An LEA;
(B) An SEA or other State agency;
(C) A public or private high school; or (D) A testing organization such
as the College Board or State agency; or
(ii) For a home-schooled student, the student's parent or guardian is
the cognizant authority for purposes of providing the documentation required
under paragraph (b)(2)(i) of this section, of a rigorous secondary school
program under Sec. 691.16(d)(2), including a transcript or the equivalent
or a detailed course description listing the secondary school courses
completed by the student.
(4) For a student who transfers from an eligible program at one institution
to an eligible program at another institution, the institution to which
the student transfers may rely upon the prior institution's determination
that the student completed a rigorous secondary school program of study
in accordance with paragraphs (b)(1)(ii)(A) and (b)(1)(iii)(A) of this
section based on documentation that the prior institution may provide,
or based on documentation of the receipt of an ACG disbursement at the
prior institution.
(c) National SMART Grant Program. A student is eligible to receive a National
SMART Grant for the third or fourth academic year of his or her eligible
program if the student'
(1) Meets the eligibility requirements in paragraph (a) of this section;
(2)(i)(A) In accordance with the institution's academic requirements,
formally declares an eligible major; or
(B) If the institution's academic requirements do not allow a student
to declare an eligible major in time to qualify for a National SMART Grant
on that basis--
(1) Demonstrates his or her intention to declare an eligible major as
documented by the institution; and
(2) Formally declares an eligible major as soon as allowed under the institution's
academic requirements; and (ii) Enrolls in the courses necessary both
to complete the degree program and to fulfill the requirements of the
intended eligible major;
(3) Has a cumulative GPA through the most recently completed payment period
of at least 3.0 or higher on a 4.0 scale, or the equivalent, consistent
with other institutional measures for academic and title IV, HEA program
purposes, in the student's eligible program;
(4) For the third academic year, has successfully completed the second
academic year of his or her eligible program; and
(5) For the fourth academic year, has successfully completed the third
academic year of his or her eligible program.
(d) Transfer student's grade point average. Under the ACG and National
SMART Grant programs, if a student transfers from another institution,
the institution to which the student transfers--
(1) Must calculate the student's GPA for the student's first payment period
of enrollment using the grades earned by the student in the coursework
from any prior institution that it accepts towards the student's eligible
program; or
(2) If the institution accepts no credits towards the student's eligible
program, must consider the student to be ineligible until the student
completes at least one payment period in an eligible program with a qualifying
GPA.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.16 Recognition
of a rigorous secondary school program of study.
(a) For an award
year, the Secretary recognizes in each State at least one rigorous secondary
school program of study as established by an SEA or, if legally authorized
by the State to establish a separate secondary school program of study,
an LEA.
(b) For each award year, the Secretary establishes a deadline for SEAs
and LEAs to submit information about the secondary school program or programs
that the SEA or LEA identifies as a rigorous secondary school program
of study, and, in the case of an LEA, documentation that the LEA is legally
authorized by the State to establish a separate secondary school program
of study.
(c) In identifying a rigorous secondary school program of study, the SEA,
or the LEA if applicable, must consider separate identifiable secondary
programs that--
(1) Are offered by secondary schools in the State, including public, charter,
private, tribal, and home schools;
(2) Are considered by the SEA, or by the LEA if applicable, to prepare
a student to pursue postsecondary education successfully; and
(3) Are not General Education Development (GED) Certificate programs.
(d) In addition to those programs identified by States or LEAs and recognized
by the Secretary as rigorous under paragraphs (b) and (c) of this section,
the Secretary recognizes the following secondary school programs of study
as rigorous:
(1) Advanced or honors secondary school programs established by States
and in existence for the 2004-2005 or 2005-2006 school year, as identified
by the Secretary.
(2) Any secondary school program in which a student completes at a minimum
the following courses:
(i) Four years of English.
(ii) Three years of mathematics, including algebra I and a higher- level
class such as algebra II, geometry, or data analysis and statistics.
(iii)Three years of science, including one year each of at least two of
the following courses: biology, chemistry, and physics.
(iv) Three years of social studies.
(v) One year of a language other than English.
(3) A secondary school program identified by a State--level partnership
that is recognized by the State Scholars Initiative of the Western Interstate
Commission for Higher Education (WICHE), Boulder, Colorado.
(4) Any secondary school program for a student who completes at least
two courses in the International Baccalaureate Diploma Program sponsored
by the International Baccalaureate Organization, Geneva, Switzerland,
and receives a score of ``4'' or higher on the examinations for at least
two of those courses.
(5) Any secondary school program for a student who completes at least
two Advanced Placement courses and receives a score of ``3'' or higher
on the College Board's Advanced Placement Program Exams for at least two
of those courses.
(e)For each award year, the Secretary publishes a list of rigorous secondary
school programs of study that the Secretary recognizes.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.17 Determination
of eligible majors.
(a) Eligible major.
For each award year, the Secretary identifies the eligible majors in the
physical, life, or computer sciences, mathematics, technology, engineering,
or, as determined under paragraph (b) of this section, critical foreign
languages.
(b) Critical foreign languages. For each award year, the Secretary identifies
the foreign languages that are critical to the national security of the
United States after consulting with the Director of National Intelligence.
(c) Duration of eligible major. A major that ceases to be listed as an
eligible major under paragraph (a) of this section for an award year remains
an eligible major in subsequent award years for a student who pursues
that major and receives a National SMART Grant in the award year in which
the major was an eligible major.
(Authority: 20 U.S.C. 1070a-1)
Subparts C-E [Reserved]
Subpart F--Determination
of Awards
Sec. 691.61 Submission
process and deadline for a Student Aid Report or Institutional Student
Information Record.
(a) Submission process.
(1) Except as provided in paragraph (a)(2) of this section, an institution
must disburse an ACG or a National SMART Grant to a student who is eligible
under Sec. 691.15 and is otherwise qualified to receive that disbursement
and electronically transmit disbursement data to the Secretary for that
student if--
(i) The student submits a valid SAR to the institution; or
(ii) The institution obtains a valid ISIR for the student.
(2) In determining a student's eligibility to receive a grant under this
part, an institution is entitled to assume that the SAR information or
ISIR information is accurate and complete except under the conditions
set forth in 34 CFR 668.16(f) and 668.60.
[[Page 38008]]
(b) Student Aid
Report or Institutional Student Information Record deadline. Except as
provided in the verification provisions of 34 CFR 668.60 and the late
disbursement provisions of 34 CFR 668.164(g) of this chapter, for a student
to receive a grant under this part in an award year, the student must
submit the relevant parts of the valid SAR to his or her institution or
the institution must obtain a valid ISIR by the earlier of--
(1) The last date that the student is still enrolled and eligible for
payment at that institution; or
(2) By the deadline date established by the Secretary through publication
of a notice in the Federal Register.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.62 Calculation
of a grant.
(a)(1) For each
award year, the Secretary establishes and announces the ACG and National
SMART Grant Scheduled Awards depending on the availability of funds for
all students who are eligible for a grant under Sec. 691.15.
(2)The Secretary may revise the ACG and National SMART Grant Scheduled
Awards in an award year depending on the availability of funds for all
students who are eligible for a grant under Sec. 691.15.
(b)(1) The maximum ACG Scheduled Award for an eligible student may be
up to--
(i) $750 for the first academic year of the student's eligible program;
and (ii) $1,300 for the second academic year of the student's eligible
program.
(2) The maximum National SMART Grant Scheduled Award for an eligible student
may be up to $4,000 for each of the third and fourth academic years of
the student's eligible program.
(c) The amount of a student's grant under this part for an academic year,
in combination with the student's EFC and other student financial assistance
available to the student, including the student's Federal Pell Grant,
may not exceed the student's cost of attendance. Other student financial
assistance is estimated financial assistance as defined in 34 CFR 673.5(c),
682.200(b), and 685.102(b).
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.63 Calculation
of a grant for a payment period.
(a)(1) Programs using
standard terms with at least 30 weeks of instructional time. A student's
payment for a payment period is calculated under paragraphs (b) or (d)
of this section if--
(i) The student is enrolled in an eligible program that--
(A) Measures progress in credit hours;
(B) Is offered in semesters, trimesters, or quarters;
(C) Requires the student to enroll for at least 12 credit hours in each
term in the award year to qualify as a full-time student; and
(D) Is not offered with overlapping terms; and
(ii) The institution offering the program--
(A) Provides the program using an academic calendar that includes two
semesters or trimesters in the fall through the following spring, or three
quarters in the fall, winter, and spring; and
(B) Provides at least 30 weeks of instructional time in the terms specified
in paragraph (a)(1)(ii)(A) of this section.
(2) Programs using standard terms with less than 30 weeks of instructional
time. A student's payment for a payment period is calculated under paragraph
(c) or (d) of this section if--
(i) The student is enrolled in an eligible program that--
(A) Measures progress in credit hours;
(B) Is offered in semesters, trimesters, or quarters; (C) Requires the
student to enroll in at least 12 credit hours in each term in the award
year to qualify as a full-time student; and
(D) Is not offered with overlapping terms; and
(ii) The institution offering the program--
(A) Provides the program using an academic calendar that includes two
semesters or trimesters in the fall through the following spring, or three
quarters in the fall, winter, and spring; and
(B) Does not provide at least 30 weeks of instructional time in the terms
specified in paragraph (a)(2)(ii)(A) of this section.
(3) Other programs using terms and credit hours. A student's payment for
a payment period is calculated under paragraph (d) of this section if
the student is enrolled in an eligible program that--
(i) Measures progress in credit hours; and
(ii) Is offered in academic terms other than those described in paragraphs
(a)(1) and (a)(2) of this section.
(4) Programs not using terms or using clock hours. A student's payment
for any payment period is calculated under paragraph (e) of this section
if the student is enrolled in an eligible program that--
(i) Is offered in credit hours but is not offered in academic terms; or
(ii)Is offered in clock hours.
(5) Programs for which an exception to the academic year definition has
been granted under 34 CFR 668.3. If an institution receives a waiver from
the Secretary of the 30 weeks of instructional time requirement under
34 CFR 668.3, an institution may calculate a student's payment for a payment
period using the following methodologies:
(i) If the program is offered in terms and credit hours, the institution
uses the methodology in--
(A) Paragraph (b) of this section provided that the program meets all
the criteria in paragraph (a)(1) of this section, except that in lieu
of paragraph (a)(1)(ii)(B) of this section, the program provides at least
the same number of weeks of instructional time in the terms specified
in paragraph (a)(1)(ii)(A) of this section as are in the program's academic
year; or
(B) Paragraph (d) of this section. (ii) The institution uses the methodology
described in paragraph (e) of this section if the program is offered in
credit hours without terms or clock hours.
(b) Programs using standard terms with at least 30 weeks of instructional
time. The payment for a payment period, i.e., an academic term, for a
student in a program using standard terms with at least 30 weeks of instructional
time in two semesters or trimesters or in three quarters as described
in paragraph (a)(1)(ii)(A) of this section, is calculated by--
(1) Confirming his or her full-time enrollment status for the term;
(2) Determining his or her ACG or National SMART Grant Scheduled Award;
and
(3) Dividing the amount described under paragraph (b)(2) of this section
by--
(i) Two at institutions using semesters or trimesters or three at institutions
using quarters; or
(ii) The number of terms over which the institution chooses to distribute
the student's ACG or National SMART Grant Scheduled Award if--
(A) An institution chooses to distribute all of the student's ACG or National
SMART Grant Scheduled Award determined under paragraph (b)(2) of this
section over more than two terms at institutions using semesters or trimesters
or more than three quarters at institutions using quarters; and
(B) The number of weeks of instructional time in the terms, including
the additional term or terms, equals the weeks of instructional time in
the program's academic year.
(c) Programs using standard terms with less than 30 weeks of instructional
time. The payment for a payment period, i.e., an academic term, for a
student in a program using standard terms with less than 30 weeks of
[[Page 38009]]
instructional time
in two semesters or trimesters or in three quarters as described in paragraph
(a)(2)(ii)(A) of this section, is calculated by--
(1) Confirming his or her full-time enrollment status for the term;
(2) Determining his or her ACG or National SMART Grant Scheduled Award;
(3) Multiplying his or her ACG or National SMART Grant Scheduled Award
determined under paragraph (c)(2) of this section by the following fraction
as applicable: In a program using semesters or trimesters--
The number of weeks of instructional time offered in the program in the
fall and spring semesters or trimesters
___________________________________________________________________________________
The number of weeks in the program's academic year
; or
In a program using quarters--
The number of weeks of instructional time offered in a program in the
fall,winter, and spring quaters
___________________________________________________________________________________
The number of weeks in the program's academic year
; and
(4)(i) Dividing the amount determined under paragraph (c)(3) of this section
by two for programs using semesters or trimesters or three for programs
using quarters; or
(ii) Dividing the student's ACG or National SMART Grant Scheduled Award
determined under paragraph (c)(2) of this section by the number of terms
over which the institution chooses to distribute the student's ACG or
National SMART Grant Scheduled Award if--
(A) An institution chooses to distribute all of the student's ACG or National
SMART Grant Scheduled Award determined under paragraph (c)(2) of this
section over more than two terms for programs using semesters or trimesters
or more than three quarters for programs using quarters; and
(B) The number of weeks of instructional time in the terms, including
the additional term or terms, equals the weeks of instructional time in
the program's academic year definition.
(d) Other programs using terms and credit hours. The payment for a payment
period, i.e., an academic term, for a student in a program using terms
and credit hours, other than those described in paragraphs (a)(1) or (a)(2)
of this section, is calculated by--
(1)(i) For a student enrolled in a semester, trimester, or quarter, determining
his or her full-time enrollment status for the term; or
(ii) For a student enrolled in a term other than a semester, trimester,
or quarter, determining his or her full-time enrollment status for the
term by--
(A) Dividing the number of weeks of instructional time in the term by
the number of weeks of instructional time in the program's academic year;
(B) Multiplying the fraction determined under paragraph (d)(1)(ii)(A)
of this section by the number of credit hours in the program's academic
year to determine the number of hours required to be enrolled to be considered
a full-time student; and
(C) Determining a student's enrollment status by comparing the number
of hours in which the student enrolls in the term to the number of hours
required to be considered full-time under paragraph (d)(1)(ii)(B) of this
section for that term;
(2) Based upon that full-time enrollment status, determining his or her
ACG or National SMART Grant Scheduled Award; and
(3) Multiplying his or her ACG or National SMART Grant Scheduled Award
determined under paragraph (d)(2) of this section by the following fraction:
The number of weeks
of instructional time in the term
___________________________________________________________________________________
The number of weeks of Instructional time in the program's academic year
(e) Programs using clock hours or credit hours without terms. The payment
for a payment period for a student in a program using credit hours without
terms or using clock hours is calculated by--
(1) Determining that the student is attending at least full-time;
(2) Determining the student's ACG or National SMART Grant Scheduled Award;
(3) Multiplying the amount determined under paragraph (e)(2) of this section
by the lesser of-- (i) The
number of weeks of instructional time required for a full-time student
to complete the lesser of clock or credit hours offered in the program
or the academic year
___________________________________________________________________________________
The number of weeks of instructional time in the program's academic year
; or
(ii) One; and
(4) Multiplying the amount determined under paragraph (e)(3) of this section
by--
The number of credits
or clock hours in a payment period
___________________________________________________________________________________
The number of credits or clock hours in the program's academic year
(f) Maximum disbursement. A single disbursement may not exceed 50 percent
of any award determined under paragraph (d) or (e) of this section. If
a payment for a payment period calculated under paragraphs (d) or (e)
of this section would require the disbursement of more than 50 percent
of a student's ACG or National SMART Grant Scheduled Award in that payment
period, the institution shall make at least two disbursements to the student
in that payment period. The institution may not disburse an amount that
exceeds 50 percent of the student's ACG or National SMART Grant Scheduled
Award until the student has completed the period of time in the payment
period that equals, in terms of weeks of instructional time, 50 percent
of the weeks of instructional time in the program's academic year.
(g) Definition of academic year. For purposes of this section, an institution
must define an academic year for each of its eligible programs in terms
of the number of credit or clock hours and weeks of instructional time
in accordance with the requirements of 34 CFR 668.3.
(h) Payment period with two academic years. In a payment period, if a
student is completing the remaining portion of the first academic year
or second academic year for an ACG or the third academic year for a National
SMART Grant Scheduled Award, the student's payment for the payment period--
(1) Is from the ACG or National SMART Grant Scheduled Award of the academic
year being completed; and
(2) Is calculated based on the total credit or clock hours, and, for a
credit-hour program, weeks of instructional time, in the payment period.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.64 Calculation
of a grant for a payment period which occurs in two award years.
(a) If a student
enrolls in a payment period that is scheduled to occur in two award years--
(1)The entire payment period must be considered to occur within one award
year;
(2)The institution shall determine for each ACG or National SMART Grant
recipient the award year in which the payment period will be placed subject
to the restrictions set forth in paragraphs (a)(3) and (a)(6) of this
section;
[[Page 38010]]
(3) The institution
shall place a payment period with more than six months scheduled to occur
within one award year in that award year;
(4) If the institution places the payment period in the first award year,
it shall pay a student with funds from the first award year;
(5) If the institution places the payment period in the second award year,
it shall pay a student with funds from the second award year; and
(6) The institution must assign the payment period for both the ACG or
National SMART Grant and the Federal Pell Grant to the same award year.
(b) An institution may not make a payment that results in the student
receiving more than his or her ACG or National SMART Grant Scheduled Award
for an academic year of the student's eligible program.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.65 Transfer
student: Attendance at more than one institution during an academic year.
(a) If a student
who receives a grant under this part at one institution subsequently enrolls
at a second institution in the same award year, the student may receive
a grant at the second institution only if--
(1)(i) The student submits a valid SAR to the second institution; or
(ii) The second institution obtains a valid ISIR; and
(2) The student is receiving a Federal Pell Grant for the same payment
period.
(b) The second institution shall calculate the student's award according
to Sec. 691.63.
(c) The second institution may pay a grant only for that portion of the
academic year of the student's eligible program in which a student is
enrolled at that institution. The grant amount must be adjusted, if necessary,
to ensure that the grant does not exceed the student's ACG or National
SMART Grant Scheduled Award for that academic year.
(d) If a student transfers between award years and the student's ACG or
National SMART Grant Scheduled Award at the second institution differs
from the ACG or National SMART Grant Scheduled Award at the first institution
for that academic year of the student's eligible program, the grant amount
at the second institution is calculated as follows-- (1) The amount received
at the first institution is compared to the ACG or National SMART Grant
Scheduled Award at the first institution to determine the percentage of
the ACG or National SMART Grant Scheduled Award that the student has received.
(2) That percentage is subtracted from 100 percent.
(3) The remaining percentage is the percentage of the ACG or National
SMART Grant Scheduled Award at the second institution to which the student
is entitled.
(e) The student's ACG or National SMART Grant payment for each payment
period is calculated according to the procedures in Sec. 691.63 unless
the remaining percentage of the ACG or National SMART Grant Scheduled
Award at the second institution, referred to in paragraph (d)(3) of this
section, is less than the amount the student would normally receive for
that payment period. In that case, the student's payment is equal to that
remaining percentage.
(f) A transfer student shall repay any amount received that exceeds his
or her ACG or National SMART Grant Scheduled Award for an academic year
in accordance with Sec. 691.79.
(Authority: 20 U.S.C. 1070a-1)
Subpart G--Administration
of Grant Payments
Sec. 691.71 Scope.
This subpart deals
with program administration by an eligible institution. (Authority: 20
U.S.C. 1070a-1)
Sec. Sec. 691.72-691.74 [Reserved]
Sec. 691.75 Determination of eligibility for payment.
(a) For each payment
period, an institution may pay a grant under this part to a student only
after it determines that the student--
(1) Qualifies as a student who Is eligible under Sec. 691.15;
(2) Is enrolled as an undergraduate student in an eligible program;
(3) If enrolled in a self-paced credit-hour program without terms or a
self-paced clock-hour program, as described in paragraph (e), is progressing
as a full-time student after completing at least--
(i) Fifty percent of the credit or clock hours of the payment period for
which the student is being paid; or
(ii) For a credit-hour program, 50 percent of the academic coursework
of the payment period for which the student is being paid if the institution
is unable to determine when the student has completed one-half of the
credit hours of the payment period; and
(4) If enrolled in a credit-hour program without terms or a clock- hour
program, has completed the payment period as defined in 34 CFR 668.4 for
which he or she has been paid a grant.
(b)(1) If an institution determines at the beginning of a payment period
that a student is not maintaining satisfactory progress, but reverses
that determination before the end of the payment period, the institution
may pay a grant under this part to the student for the entire payment
period.
(2) For purposes of the ACG Program, if an institution determines at the
beginning of a payment period that a student enrolled in the second academic
year of his or her eligible program is not maintaining the necessary GPA
for an ACG under Sec. 691.15(b)(1)(iii)(C), but reverses that determination
before the end of the payment period, the institution may pay an ACG to
the student for the entire payment period. (3) For purposes of the National
SMART Grant Program, if an institution determines at the beginning of
a payment period that a student is not maintaining the necessary GPA for
a National SMART Grant under Sec. 691.15(c)
(3) or is no longer pursuing a required major under Sec. 691.15(c)(2),
but reverses that determination before the end of the payment period,
the institution may pay a National SMART Grant to the student for the
entire payment period.
(c) If an institution determines at the beginning of a payment period
that a student is not maintaining satisfactory progress or the necessary
GPA for an ACG under Sec. 691.15(b)(1)(iii)(C), a National SMART Grant
under Sec. 691.15(c)(3), or, in the case of a National SMART Grant is
no longer pursuing a required major under Sec. 691.15(c)(2), but reverses
that determination after the end of the payment period, the institution
may neither pay the student an ACG or a National SMART Grant for that
payment period nor make adjustments in subsequent payments to compensate
for the loss of aid for that period.
(d) Subject to the requirement of paragraph (d)(2), an institution may
make one disbursement for a payment period to an otherwise eligible student
if--
(1)(i) For the first payment period of the student's ACG for the second
academic year, a student's GPA for the first academic year under Sec.
691.15(b)(1)(iii)(C) is not yet available; or
(ii) For a payment period for a National SMART Grant, a student's cumulative
GPA through the prior payment period under Sec. 691.15(c)(3) for the student's
enrollment in the eligible program through the prior payment period under
Sec. 691.15(c)(3) is not yet available; and
(2) The institution assumes liability for any overpayment as a result
of the [[Page 38011]] student failing to meet the required GPA to qualify
for the disbursement.
(e) For purposes of this section, a self-paced program is an educational
program without terms that allows a student--
(1) To complete courses without a defined schedule for completing the
courses; or
(2) At the student's discretion, to begin courses within a program either
at any time or on specific dates set by the institution for the beginning
of courses without a defined schedule for completing the program.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.76 Frequency
of payment.
(a) In each payment
period, an institution may pay a student at such times and in such installments
as it determines will best meet the student's needs.
(b) The institution may pay funds in one lump sum for all the prior payment
periods for which the student was eligible under Sec. 691.15 within the
award year. The student must have completed the prior payment period as
a full-time student.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.77[Reserved]
Sec. 691.78 Method of disbursement--by check or credit to a student's
account.
(a) An institution
shall disburse funds to a student or the student's account in accordance
with the provisions in 34 CFR 668.164.
(b) The institution shall return to the ACG or National SMART Grant account
any funds paid to a student who, before the first day of classes--
(1) Officially or unofficially withdraws; or
(2) Is expelled.
(c)(1) An institution that intends to pay a student directly must notify
the student in accordance with 34 CFR 668.165(a).
(2) If a student does not pick up the check on time, the institution shall
still pay the student if he or she requests payment within 20 days after
the last date that his or her enrollment ends in that award year.
(3) If the student has not picked up his or her payment at the end of
the 20-day period, the institution may credit the student's account only
for any outstanding charges for tuition and fees and room and board for
the award year incurred by the student while he or she was eligible.
(4) A student forfeits the right to receive the payment if he or she does
not pick up a payment by the end of the 20-day period.
(5) Notwithstanding paragraph (c)(4) of this section, the institution
may, if it chooses, pay a student who did not pick up his or her payment,
through the next payment period.
(6) An institution shall make a late disbursement to an ineligible student
in accordance with the provisions in 34 CFR 668.164(g).
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.79 Liability
for and recovery of grant overpayments.
(a)(1) Except as
provided in paragraphs (a)(2) and (a)(3) of this section, a student is
liable for any grant overpayment made to him or her under this part.<br>
(2) The institution
is liable for a grant overpayment if the overpayment occurred because
the institution failed to follow the procedures set forth in this part
or 34 CFR part 668. The institution must restore an amount equal to the
overpayment to its ACG or National SMART Grant account, as applicable.
(3) A student is not liable for, and the institution is not required to
attempt recovery of or refer to the Secretary, a grant overpayment under
this part if the amount of the overpayment is less than $25 and is not
a remaining balance.
(b)(1) Except as provided in paragraph (a)(3) of this section, if an institution
makes an overpayment under this part for which it is not liable, it must
promptly send a written notice to the student requesting repayment of
the overpayment amount. The notice must state that failure to make that
repayment, or to make arrangements satisfactory to the holder of the overpayment
debt to repay the overpayment, makes the student ineligible for further
title IV, HEA program funds until final resolution of the overpayment.
(2) If a student objects to the institution's overpayment determination
on the grounds that it is erroneous, the institution must consider any
information provided by the student and determine whether the objection
is warranted.
(c) Except as provided in paragraph (a)(3)of this section, if the student
fails to repay an overpayment under this part or make arrangements satisfactory
to the holder of the overpayment debt to repay the overpayment, after
the institution has taken the action required by paragraph (b) of this
section, the institution must refer the overpayment to the Secretary for
collection purposes in accordance with procedures required by the Secretary.
After referring the overpayment to the Secretary under this section, the
institution need make no further efforts to recover the overpayment.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.80 Redetermination
of eligibility for a grant award.
(a) Change in receipt
of Federal Pell Grant. If, after the beginning of a payment period, a
student otherwise eligible for an ACG or a National SMART Grant begins
or ceases to receive a Federal Pell Grant for that payment period, the
institution must redetermine the student's eligibility for an ACG or a
National SMART Grant for that payment period.
(b) Change in enrollment status. (1) If the student's enrollment status
changes from one payment period to another within the same award year,
the institution shall determine whether the student qualifies for an ACG
or a National SMART Grant for the new payment period.
(2)(i) If the student's projected enrollment status changes during a payment
period after the student has begun attendance in all of his or her classes
for that payment period, the institution may (but is not required to)
establish a policy under which the institution may redetermine eligibility
for the student's award for the payment period. If such a policy is established,
it must apply to all students and be the same as the policy established
for the Federal Pell Grant Program.
(ii) If a student's projected enrollment status changes to less- than-full-time
during a payment period before the student begins attendance in all of
his or her classes for that payment period, the institution shall determine
that the student is ineligible for a grant under this part for that payment
period.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.81 Fiscal
control and fund accounting procedures.
(a) An institution
shall follow provisions for maintaining general fiscal records in this
part and in 34 CFR 668.24(b).
(b) An institution shall maintain funds received under this part in accordance
with the requirements in 34 CFR 668.164.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.82 Maintenance
and retention of records.
(a) An institution
shall follow the record retention and examination provisions in this part
and in 34 CFR 668.24.
(b) For any disputed expenditures in any award year for which the institution
cannot provide records, the Secretary determines the final authorized
level of expenditures.
(Authority: 20 U.S.C. 1070a-1, 1232f)
Sec. 691.83 Submission
of reports.
(a)(1) An institution
may receive either a payment from the Secretary for an award to an ACG
or a National SMART Grant recipient, or a corresponding reduction in the
amount of Federal funds received in advance for which it is accountable,
if--
(i) The institution submits to the Secretary the student's Payment
Data for that award year in the manner and form prescribed in paragraph
(a)(2) of this section by September 30 following the end of the award
year in which the grant is made, or, if September 30 falls on a weekend,
on the first weekday following September 30; and
(ii) The Secretary accepts
the student's Payment Data.
(2) The Secretary accepts a student's Payment
Data that is submitted in accordance with procedures established through
publication in the Federal Register, and that contains information the
Secretary considers to be accurate in light of other available information
including that previously provided by the student and the institution.
(3) An institution that does not comply with the requirements of this
paragraph may receive a payment or reduction in accountability only as
provided in paragraph (d) of this section.
(b)(1) An institution shall
report to the Secretary any change in the amount of a grant for which
a student qualifies including any related Payment Data changes by submitting
to the Secretary the student's Payment Data that discloses the basis and
result of the change in award for each student. The institution shall
submit the student's Payment Data reporting any change to the Secretary
by the reporting deadlines published by the Secretary in the Federal Register.
(2) An institution shall submit, in accordance with deadline dates established
by the Secretary, through publication in the Federal Register, other reports
and information the Secretary requires and shall comply with the procedures
the Secretary finds necessary to ensure that the reports are correct.
(3) An institution that timely submits, and has accepted by the Secretary,
the Payment Data for a student in accordance with this section shall report
a reduction in the amount of an award that the student received when it
determines that an overpayment has occurred, unless that overpayment is
one for which the institution is not liable under Sec. 691.79(a).
(c) In accordance with 34 CFR 668.84, the Secretary may impose a fine on the
institution if the institution fails to comply with the requirements specified
in paragraphs (a) or (b) of this section.
(d)(1) Notwithstanding paragraph (a) or (b) of this section, if an institution demonstrates to the satisfaction
of the Secretary that the institution has provided ACGs or National SMART
Grants in accordance with this part but has not received credit or payment
for those grants, the institution may receive payment or a reduction in
accountability for those grants in accordance with paragraphs (d)(4) and
either (d)(2) or (d)(3) of this section.
(2) The institution must demonstrate that it qualifies for a credit or
payment by means of a finding contained in an audit report of an award
year that was the first audit of that award year and timely submitted
to the Secretary under 34 CFR 668.23(a).
(3) An institution that timely submits the Payment Data for a student in accordance with paragraph (a)
of this section but does not timely submit to the Secretary, or have accepted
by the Secretary, the Payment Data necessary to document the full amount
of the award to which the student is entitled, may receive a payment or
reduction in accountability in the full amount of that award, if--
(i) A program review demonstrates to the satisfaction of the Secretary that
the student was eligible to receive an amount greater than that reported
in the student's Payment Data timely submitted to, and accepted by the
Secretary; and
(ii) The institution seeks an adjustment to reflect an
underpayment for that award that is at least $100.
(4) In determining whether the institution qualifies for a payment or reduction in accountability,
the Secretary takes into account any liabilities of the institution arising
from that audit or program review or any other source. The Secretary collects
those liabilities by offset in accordance with 34 CFR part 30.
(Authority: 20 U.S.C. 1070a-1, 1094, 1226a-1)
[FR Doc. 06-5937 Filed 6-29-06; 8:45 am]
BILLING CODE 4000-01-P
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