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NASFAA
1101 Connecticut Avenue, NW,
Suite 1100
Washington, DC 20036-4303
Phone: 202-785-0453
Fax: 202-785-1487
Web@NASFAA.org
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Federal Register: May 1, 2009
Volume 74, Number 83
[Rules and Regulations]
[Page 20210-20225]
[PDF version of document]
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DEPARTMENT OF EDUCATION
34 CFR Parts 668, 686, 690, and 691
RIN 1840-AC96
[Docket ID ED-2009-OPE-0001]
Student Assistance General Provisions; Teacher Education
Assistance for College and Higher Education (TEACH) Grant 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 rule; request for comments.
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SUMMARY: The Secretary amends the regulations for the Academic
Competitiveness Grant (ACG) and National Science and Mathematics Access
to Retain Talent Grant (National SMART Grant) Programs. These interim
final regulations are needed to implement provisions of the Higher
Education Act of 1965 (HEA), as amended by the Ensuring Continued
Access to Student Loans Act of 2008 (ECASLA) and the Higher Education
Opportunity Act of 2008 (HEOA). The new statutory provisions are
effective July 1, 2009. The Secretary also amends the regulations in
the Student Assistance General Provisions, and the regulations for the
Teacher Education Assistance for College and Higher Education (TEACH)
Grant Program and the Federal Pell Grant Program to implement
conforming changes based on the statutory amendments to the ACG and
National SMART Grant programs.
DATES: These regulations are effective July 1, 2009. We must receive
your comments on or before June 1, 2009.
ADDRESSES: Submit your comments through the Federal eRulemaking Portal
or via postal mail, commercial delivery, or hand delivery. We will not
accept comments by fax or by e-mail. Please submit your comments only
one time, in order to ensure that we do not receive duplicate copies.
In addition, please include the Docket ID at the top of your comments.
Federal eRulemaking Portal: Go to http://
www.regulations.gov to submit your comments electronically. Information
on using Regulations.gov, including instructions for accessing agency
documents, submitting comments, and viewing the docket is available on
the site under ``How To Use This Site.''
[[Page 20211]]
Postal Mail, Commercial Delivery, or Hand Delivery: If you
mail or deliver your comments about these interim final regulations,
address them to Sophia McArdle, U.S. Department of Education, 1990 K
Street, NW., room 8019, Washington, DC 20006-8544.
Privacy Note: The Department's policy for comments received
from members of the public (including those comments submitted by
mail, commercial delivery, or hand delivery) is to make these
submissions available for public viewing in their entirety on the
Federal eRulemaking Portal at http://www.regulations.gov. Therefore,
commenters should be careful to include in their comments only
information that they wish to make publicly available on the
Internet.
FOR FURTHER INFORMATION CONTACT:
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Topic Contact person and information
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General information and information Sophia McArdle. Telephone:
related to rigorous secondary school (202) 219-7078 or via the
programs and eligible majors. Internet:
sophia.mcardle@ed.gov.
Information related to grade level Fred Sellers. Telephone: (202)
progression. 502-7502 or via the Internet:
fred.sellers@ed.gov.
Information related to payments for Jacquelyn Butler. Telephone:
part-time students. (202) 502-7890 or via the
Internet:
jacquelyn.butler@ed.gov.
Information related to prior enrollment Carney McCullough. Telephone:
(202) 502-7639 or via the
Internet:
carney.mccullough@ed.gov.
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If you use a telecommunications device for the deaf (TDD), call the
Federal Relay Service (FRS), toll free, at 1-800-877-8339.
Individuals with disabilities may obtain this document in an
accessible format (e.g., braille, large print, audiotape, or computer
diskette) on request to the first contact person listed under FOR
FURTHER INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION:
Invitation To Comment
We invite you to submit comments regarding these interim final
regulations. To ensure that your comments have maximum effect in
developing the final regulations, we urge you to identify clearly the
specific section or sections of the interim final regulations that each
of your comments addresses and to arrange your comments in the same
order as the interim final regulations.
We invite you to assist us in complying with the specific
requirements of Executive Order 12866 and its overall requirement of
reducing regulatory burden that might result from these interim final
regulations. Please let us know of any further opportunities we should
take to reduce potential costs or increase potential benefits while
preserving the effective and efficient administration of the program.
During and after the comment period, you may inspect all public
comments about these interim final regulations by accessing
Regulations.gov. You may also inspect the comments, in person, in room
8019, 1990 K Street, NW., Washington, DC, between the hours of 8:30
a.m. and 4 p.m., Eastern time, Monday through Friday of each week
except Federal holidays.
Assistance to Individuals With Disabilities in Reviewing the Rulemaking
Record
On request, we will supply an appropriate aid, such as a reader or
print magnifier, to an individual with a disability who needs
assistance to review the comments or other documents in the public
rulemaking record for these interim final regulations. If you want to
schedule an appointment for this type of aid, please contact the first
person listed under FOR FURTHER INFORMATION CONTACT.
Background
These interim final regulations implement certain provisions of the
HEA, as amended by the ECASLA (Pub. L. 110-227) and the HEOA (Pub. L.
110-315), which become effective on July 1, 2009. The ECASLA makes ACGs
and National SMART Grants available to eligible non-citizens and
students enrolled at least half-time, provides that maximum ACG and
National SMART Grant awards for part-time students be proportionally
reduced consistent with the requirements in the Federal Pell Grant
Program, and requires grant awards and payments to be determined on the
same basis as in the Federal Pell Grant Program. Furthermore, the
ECASLA provides that grant awards be based on a student's grade level,
instead of academic year. Additionally, the ECASLA authorizes the award
of ACGs for students enrolled in a one- or two-year certificate program
at a degree-granting institution and allows students who were once
enrolled in an undergraduate program as part of a secondary school
program of study to receive a first-year ACG if the student is
otherwise eligible. Finally, the ECASLA creates three additional
program options by which students can qualify for a National SMART
Grant. The HEOA amends the method by which secondary school programs of
study are determined to be rigorous, while maintaining rigorous
programs previously recognized by the Secretary in regulations.
Waiver of Rulemaking
Under the Administrative Procedure Act (APA) (5 U.S.C. 553), the
Department is generally required to publish a notice 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 by Title IV of the
HEA (Title IV, HEA programs) are subject to the negotiated rulemaking
requirements of section 492 of the HEA.\1\
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\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.
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Section 402(b) of the HEOA waives the negotiated rulemaking
requirements in section 492 of the HEA (as well as the master calendar
requirements in section 482 of the HEA) for changes made to the ACG and
National SMART Grant Programs in both the ECASLA and in the HEOA.
Consequently, the negotiated rulemaking requirements in section 492 of
the HEA do not apply to the interim final regulations in this notice
and we will not subject them to negotiated rulemaking.
We are waiving the notice-and-comment rulemaking requirements under
the APA. 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 procedure thereon are impracticable, unnecessary, or
contrary to the public interest. Although these regulations are subject
to the APA's notice-and-comment requirements, the
[[Page 20212]]
Secretary has determined that it would be impracticable to conduct
notice-and-comment rulemaking in time to implement these changes for
the 2009-2010 award year. Waiver of rulemaking under the
impracticability exemption in the APA is warranted because it would not
be possible for the Department to comply with the APA's rulemaking
mandates and execute its statutory duties under the HEA, as amended by
the ECASLA and the HEOA.\2\ The Department cannot both implement these
changes to the ACG and National SMART Grant programs, including making
awards to eligible students, by the beginning of the 2009-2010 award
year, and conduct notice-and-comment rulemaking for the regulations for
these programs.
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\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). See also New Jersey Dept of Envtl.
Prot. v. U.S. EPA, 626 F.2d 1038, 1046 (D.C. Cir. 1980).
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In the ECASLA, enacted on May 7, 2008, Congress made a number of
changes to the ACG and National SMART Grant programs that were to be
effective on January 1, 2009. On August 14, 2008, Congress enacted the
HEOA, which amended some of the changes made in the ECASLA and made
additional changes. The HEOA provides that amendments made by the
ECASLA and HEOA are effective July 1, 2009. The Department therefore
has a short window to plan the administration of the changes and make
awards consistent with those changes for the 2009-2010 award year.
Even on an extremely expedited timeline, the Department could not
feasibly conduct notice-and-comment rulemaking and then promulgate
final regulations in time to make awards for the 2009-2010 award year.
Publishing a notice of proposed rulemaking, reviewing the public
comments, and issuing final regulations normally takes at least six
months, and this could not be accomplished prior to the statutory July
1, 2009 effective date.
In addition to developing and issuing these regulations, there are
a number of other steps necessary for the Department to implement the
changes to the ACG and National SMART Grant programs for the 2009-2010
award year that make rulemaking impracticable. Implementation requires
the Department to make a number of changes to the Department's
financial aid systems so that students can apply for and receive ACGs
and National SMART Grants for which they are eligible. The process of
completing all of these steps and developing program regulations
through notice-and-comment rulemaking requires far more time than that
available to the Department in order to make awards to students for the
upcoming 2009-2010 award year.
Based upon this information, and in order to make timely grant
awards for the 2009-2010 award year, the Secretary is issuing these
interim final regulations without first publishing proposed regulations
for public comment.
Although the Department is adopting these regulations on an interim
final basis, the Department requests public comment on these
regulations. After consideration of public comments, the Secretary will
publish final regulations.
Significant Regulations
We discuss substantive issues under the sections of the interim
final regulations to which they pertain. Generally, we do not address
regulatory provisions that are technical or otherwise minor in effect.
Definitions (Sec. 691.2)
ACG and National SMART Grant Scheduled Award
Statute: Section 10 of the ECASLA amends section 401A of the HEA by
replacing the term ``academic year'' with the term ``year'' in those
provisions related to determining a student's period of eligibility for
an ACG or a National SMART Grant (e.g., section 401A(b), (c)(3),
(d)(1)(A)(iii), and (d)(2) of the HEA). Section 10 of the ECASLA also
amends section 401A of the HEA by adding a third year of eligibility
for National SMART Grants for any otherwise eligible student enrolled
in a program with at least five full years of coursework (see section
401A(c)(3)(E)).
Current Regulations: Current Sec. 691.2(d) defines an ACG or
National SMART Grant Scheduled Award as the amount that would be paid
to a full-time student for a full academic year.
Regulations: We are amending the definitions in Sec. 691.2(d) to
provide that an ACG Scheduled Award is the maximum amount of an ACG
that would be paid to a full-time first-year student or a full-time
second-year student for the applicable year. A National SMART Grant
Scheduled Award is the maximum amount of a National SMART Grant that
would be paid to a full-time third-year, fourth-year, or fifth-year
student for the applicable year.
Reason: We are amending these definitions to reflect the statutory
change that a student's eligibility for a grant is based on his or her
grade level as a first-, second-, third-, fourth-, or fifth-year
student, rather than the student's academic year.
Annual Award
Statute: Section 10(a)(3) of the ECASLA amends section 401A(c) of
the HEA to provide that a student enrolled or accepted for enrollment
in an institution of higher education on not less than a half-time
basis may be an eligible student (see section 401A(c)(3) of the HEA).
Prior to the ECASLA, only full-time students were eligible.
Current Regulations: None.
Regulations: We are amending Sec. 691.2(d) to define the term
annual award as the maximum ACG or National SMART Grant amount a
student would receive for enrolling as a full-time, three-quarter-time,
or half-time student and remaining in that enrollment status for one
year.
Reason: We are adding this definition, in conjunction with other
changes to Subpart F (Determination of Awards) of part 691, to ensure
compliance with the statutory requirement that a student's payments be
adjusted based on the student's enrollment status during a payment
period.
Eligible Major
Statute: Section 10(a)(3)(C)(v) of the ECASLA amends the HEA by
adding a new section 401A(c)(3)(D), which extends eligibility for a
National SMART Grant to a student enrolled in a qualifying liberal arts
curriculum. Prior to this statutory change, an eligible major for a
National SMART Grant was a major in the physical, life, or computer
sciences, mathematics, technology, or engineering (as determined by the
Secretary pursuant to regulations), or a foreign language that the
Secretary, in consultation with the Director of National Intelligence,
determines is critical to the national security of the United States.
Current Regulations: Current Sec. 691.2(d) defines the term
eligible major, for purposes of the National SMART Grant Program, as a
major, as determined by the Secretary under Sec. 691.17, in one of the
physical, life, or computer sciences, mathematics, technology,
engineering, or a critical foreign language.
Regulations: We are amending the definition of the term eligible
major to include, in addition to majors in physical, life, or computer
sciences, mathematics, technology, engineering or a critical foreign
language, a qualifying
[[Page 20213]]
liberal arts curriculum as determined by the Secretary under new Sec.
691.17(b).
Reason: The amendments to the definition of the term eligible major
implement the new statutory provision that a student may be eligible
for a National SMART Grant by enrolling in a qualifying liberal arts
curriculum.
Eligible Program
Statute: Section 10(a)(3)(C)(ii) of the ECASLA amends section
401A(c)(3) of the HEA by providing that an eligible student enrolled in
an institution of higher education in an undergraduate certificate
program at least one year in length may be eligible for an ACG (see
section 401A(c)(3)(A) of the HEA). Section 10(a)(3)(C)(v) of the ECASLA
also amends section 401A(c)(3) of the HEA to provide that a student
enrolled in a program at a degree-granting institution of higher
education that requires at least five full years of coursework may be
eligible for a National SMART Grant in his or her fifth--as well as
third and fourth--year of enrollment (see section 401A(c)(3)(E) of the
HEA).
Current Regulations: Current Sec. 691.2(d) defines the term
eligible program as an eligible program, as defined in 34 CFR 668.8,
that (a) 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
(b) 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.
Regulations: We are amending the definition of an eligible program
in Sec. 691.2 to include, for the ACG Program, an undergraduate
certificate program of at least one academic year in length. We are
also amending the definition of the term eligible program to include a
degree program with at least five full undergraduate years of
coursework at a degree-granting institution of higher education (a
student in this type of program would be eligible for a National SMART
Grant for the third, fourth, and fifth years of the program). In order
to be consistent with the statutory changes regarding the inclusion of
five-year programs under the National SMART Grant Program, we are
amending the definition of eligible program to clarify that a five-year
program is an eligible program if--(a) an appropriate official of an
institution of higher education with authority to approve curricula
certifies that the program requires at least five full undergraduate
years of coursework to complete (as documented in the institution's
records), and (b) each year of the program, including the fifth year,
is not less than 24 semester hours, 36 quarter credits, or 900 clock
hours. Paragraph (2)(ii)(C) of the definition clarifies that a program
with a qualifying liberal arts curriculum identified as an eligible
major under Sec. 691.17(b) is not eligible as a five-year program.
Reason: We are amending the definition of the term eligible program
to implement the statutory changes that a student may be eligible for
an ACG if the student is enrolled in a certificate program at least one
academic year in length and that a student may be eligible for a
National SMART Grant for his or her fifth year in an eligible five-year
program.
We are amending the definition of the term eligible program, for
purposes of the ACG Program, to include undergraduate programs of at
least one academic year in length leading to a certificate. While the
statutory language refers to ``a program of not less than one year for
which the institution awards a certificate,'' we believe that the
minimum length of the program should be tied to an ``academic year,''
and not a ``year.'' This is because to qualify as an institution of
higher education under 34 CFR 600.4(a)(4)(iii) of the institutional
eligibility regulations, an institution must offer a certificate
program that is at least one academic year in length.
With respect to the fifth-year National SMART Grant, the
certification requirement reflected in new paragraph (2)(ii)(A) of the
definition is required by section 401A(c)(3)(E) of the HEA. The
requirement that the certification be documented in the institution's
records is intended to avoid any additional reporting burden on
institutions.
First-, Second-, Third-, Fourth-, and Fifth-Year
Statute: Section 10 of the ECASLA amends section 401A of the HEA by
replacing the term ``academic year'' with the term ``year'' in those
provisions related to determining a student's period of eligibility for
an ACG or a National SMART Grant (e.g., section 401A(b), (c)(3),
(d)(1)(A)(iii) and (d)(2) of the HEA). Section 10 of the ECASLA also
amends section 401A of the HEA by adding a third year of eligibility
for National SMART Grants for any otherwise eligible student enrolled
in a program with five full years of coursework (see section
401A(c)(3)(E)).
Current Regulations: None.
Regulations: We are adding a new Sec. 691.2(e)(1) to define the
terms ``first-year,'' ``second-year,'' ``third-year,'' ``fourth-year,''
and ``fifth-year'' as a student's grade level in the student's eligible
program as determined by the institution for all students in the
eligible program. We are also adding a new Sec. 691.2(e)(2) to provide
that a student's grade level for purposes of the ACG and National SMART
Grant programs must be the same grade level used for determining annual
loan limits under the FFEL and Direct Loan programs (34 CFR parts 682
and 685).
Reason: New Sec. 691.2(e)(1) implements the statutory change from
use of ``academic year'' to ``year.'' It is necessary for the
Department to clarify that, in using the term ``year,'' we mean the
student's grade level. New Sec. 691.2(e)(2) ensures the consistent
treatment of students in all Title IV, HEA programs.
Duration of Student Eligibility--Undergraduate Course of Study (Sec.
691.6)
Statute: Section 10 of the ECASLA amends section 401A of the HEA to
provide that an eligible student may only receive one ACG for each of
the first or second years of an undergraduate program and one National
SMART Grant for each of the third, fourth, or fifth years of a
bachelor's degree program, rather than the first, second, third, or
fourth academic year of the program (see section 401A(c)(3) of the
HEA). In addition, section 10 of the ECASLA amends section 401A of the
HEA by adding a new paragraph (c)(3)(E) to provide that a student may
be eligible for a third National SMART Grant for enrollment in the
fifth year of an undergraduate baccalaureate program if that program
requires at least five full years of coursework.
Current Regulations: Current Sec. 691.6 bases the duration of
student eligibility for the ACG and National SMART Grant programs on
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.
Regulations: We are amending Sec. 691.6 to provide that a student
is eligible for one ACG Scheduled Award while enrolled as a first-year
student, one ACG Scheduled Award while enrolled as a second-year
student, one National SMART Grant Scheduled Award while enrolled as a
third-year student, one National SMART Grant Scheduled Award while
enrolled as a fourth-year student, and, in the case of a program with
at least five full years of
[[Page 20214]]
coursework, one National SMART Grant Scheduled Award while enrolled as
a fifth-year student. We are providing that a fourth-year student,
enrolled in a National SMART Grant-eligible program with less than five
full years of coursework, continues to be a fourth-year student until
he or she completes his or her first undergraduate baccalaureate course
of study. We are also providing that a fifth-year student, enrolled in
a National SMART Grant-eligible program with at least five full years
of coursework, continues to be a fifth-year student until he or she has
completed his or her first undergraduate baccalaureate course of study.
Reason: These interim final regulations implement the changes to
the HEA by providing that the duration of a student's eligibility is
based on the student's year in postsecondary education, consistent with
the use of this term in the FFEL and Direct Loan programs, rather than
the number of academic years the student has completed.
Under the amendments to Sec. 691.6, a student's eligibility is
based on the student's grade level rather than academic year. This
change in implementation of the ACG and National SMART Grant programs
will begin in the 2009-2010 award year. We believe that awards for some
continuing students may be affected as they progress to the comparable
point in grade level that they were previously deemed to have reached
in an academic year. However, most of these students will still be
eligible to receive the same amount of grant funds over their entire
period of enrollment. A student who received a third-academic-year
National SMART Grant Scheduled Award in the 2008-2009 award year, for
example, may now be considered to be in the second-year grade level of
his or her National SMART Grant-eligible program in the 2009-2010 award
year. That student would no longer be eligible for a National SMART
Grant until the student advances to the fourth year of his or her
National SMART Grant-eligible program. However, in this example,
although the student has already received a third-year National SMART
Grant Scheduled Award, the student may be paid for any remaining
eligibility for a second-year ACG Scheduled Award, if otherwise
eligible, because only the student's grade level is the determining
factor, without regard to any particular progression.
Some of these students, however, will no longer be eligible to
receive the same amount of grant funds over their entire period of
enrollment. For example, a student who initially enrolled in the fall
of 2008 with 30 semester hours based on Advanced Placement courses and
received a first-academic-year ACG Scheduled Award in the 2008-2009
award year while earning an additional 30 semester hours, may now be
considered to be in the third-year grade level of his or her eligible
program in the 2009-2010 award year and would not be eligible for a
second-year ACG in 2009-2010. The student could receive a third-year
National SMART Grant, if he or she met other eligibility criteria.
The provision that a fourth-year student enrolled in a National
SMART Grant-eligible program with less than five full years of
coursework continues to be considered a fourth-year student until he or
she completes his or her first undergraduate baccalaureate course of
study, and that a fifth-year student in a five-year program continues
to be a fifth-year student until he or she completes his or her
undergraduate baccalaureate course of study is designed to provide
students with the greatest amount of National SMART Grant funds
possible, by allowing a student who was ineligible for some part of his
or her fourth or fifth year to obtain a fourth- or fifth-year award.
For example, a student is enrolled in a program that requires full-
time attendance for nine semesters, and a student normally completes a
grade level by successfully completing two semesters of coursework. In
the fall of 2008, the student begins her fourth year and completes the
2008-2009 fall and spring terms which are the seventh and eighth
semesters of the student's program. During the 2008-2009 award year,
the student did not receive a Federal Pell Grant, and as a result none
of the fourth-year National SMART Grant Scheduled Award was disbursed.
In the fall term of 2009, the student enrolls for the final semester of
her program and receives a Federal Pell Grant. For the fall term, as
part of the extended fourth year, the student would also receive a
National SMART Grant disbursement from the fourth-year National SMART
Grant Scheduled Award, if otherwise eligible.
Enrollment Status for Students Taking Regular and Correspondence
Courses (Sec. 691.8)
Statute: The statute does not address how taking correspondence
courses affects a student's enrollment status in an eligible program.
Section 10(c)(2) of the ECASLA, however, amends section 401A(c)(2) of
the HEA to provide that a student may be eligible for an ACG or a
National SMART Grant if he or she is enrolled or accepted for
enrollment in an institution of higher education on at least a half-
time basis. Before the ECASLA, only full-time students were eligible
for grants under these programs.
Current Regulations: Current Sec. 691.8 sets forth the
circumstances under which correspondence courses may be applied toward
a student's full-time enrollment status in an eligible program.
Regulations: We are amending Sec. 691.8 to describe how
correspondence courses may be applied toward a student's enrollment
status (i.e., as a half-time, three-quarter-time, and full-time
student) in an eligible program.
Reason: Because the statute now allows students enrolled or
accepted for enrollment in an institution of higher education on at
least a half-time basis to be eligible for an ACG or a National SMART
Grant, it is necessary to make changes to Sec. 691.8, regarding how
correspondence courses may be applied to a student's less-than-full-
time enrollment in an eligible program.
Citizenship and Student Eligibility (Sec. Sec. 668.33 and 691.15)
Statute: Section 10(a)(3) of the ECASLA amends section 401A(c) of
the HEA by removing the requirement that a student be a U.S. citizen to
be eligible for an ACG or a National SMART Grant.
Current Regulations: Current Sec. Sec. 691.15(a)(1) and 668.33(c)
provide that a student must be a U.S. citizen to be eligible to receive
an ACG or a National SMART Grant.
Regulations: We are removing the provisions in Sec. Sec.
691.15(a)(1) and 668.33(c) that only U.S. citizens are eligible to
receive ACGs or National SMART Grants.
Reason: These amendments reflect the statutory change that
eliminates the requirement that only students who are U.S. citizens may
qualify for assistance under the ACG and National SMART Grant programs.
Moreover, this change is consistent with section 484(a)(5) of the HEA,
which provides that a student who is not a United States citizen or
national but who can provide evidence that he or she is in the United
States for other than a temporary purpose with the intention of
becoming a citizen or permanent resident may qualify as an eligible
student for the Title IV, HEA programs.
Enrollment Status and Student Eligibility (Sec. Sec. 668.32, 691.2,
691.15, 691.76, and 691.80)
Statute: Section 10(a)(3) of the ECASLA amends section 401A(c) of
the HEA to remove the requirement that a student be enrolled full-time
to receive an ACG or a National SMART Grant. Instead, a student must be
enrolled at
[[Page 20215]]
least half-time in order to receive an ACG or a National SMART Grant.
Current Regulations: Current Sec. 691.15(a)(3) provides that a
student must be enrolled full-time in order to be eligible to receive
an ACG or a National SMART Grant.
Regulations: We are removing from Sec. 691.15(a) the requirement
that a student be enrolled full-time to be eligible to receive an ACG
or a National SMART Grant. Also, we are amending the general student
eligibility requirements for the Title IV, HEA programs in Sec.
668.32(a)(2) by adding the ACG and National SMART Grant programs to the
list of programs that require students to be enrolled at least half-
time.
We are also amending the list of definitions used in the ACG and
National SMART Grant regulations to refer to the existing definitions
of the terms half-time student and three-quarter-time student contained
in 34 CFR 668.2 of the Student Assistance General Provisions.
Finally, we are amending Sec. Sec. 691.76 (Frequency of payment)
and 691.80 (Redetermination of eligibility for a grant award) to
address how (a) an institution determines a student's enrollment status
for payment purposes for prior payment periods, and (b) changes in a
student's enrollment status, which are now permitted under the statute,
are handled for purposes of recalculation of award amounts.
Reason: We are making the changes to Sec. Sec. 691.2 and 691.15 to
implement the statutory change allowing students attending at least
half-time to be eligible for an award under the ACG and National SMART
Grant programs.
We also believe that it is appropriate to amend the student
eligibility provisions in 34 CFR part 668 (Student Assistance General
Provisions) to include the ACG and National SMART Grant programs among
the other Title IV, HEA programs that have the same enrollment status
requirement.
The amendments to Sec. Sec. 691.76 and 691.80 enable institutions
to adjust ACG and National SMART Grant award payments based on a change
in a student's enrollment status. These amendments are consistent with
34 CFR 690.76 and 690.80 in the Federal Pell Grant Program regulations.
Prior Enrollment and Student Eligibility (Sec. 691.15)
Statute: Section 10(a)(3)(C)(ii)(III) of the ECASLA amends section
401A(c)(3)(A)(ii) of the HEA to clarify that students who were enrolled
in a program of undergraduate education as part of a secondary school
program of study are not subject to the prior enrollment restriction
for first-year students.
Current Regulations: Current Sec. 691.15(b)(1)(ii)(C) provides
that a student is not eligible for a first-year ACG if the student was
enrolled as a regular student in an ACG-eligible program while the
student was at or below the age of compulsory attendance while he or
she was in high school.
Regulations: We are amending Sec. 691.15(b)(1)(ii)(C) to provide
that the restriction on prior enrollment does not apply to students who
were enrolled as regular students in an eligible program of
undergraduate education that was also part of a secondary school
program of study. We are also clarifying in new Sec.
691.15(b)(1)(ii)(C) that transfer students who are first-year students
are not considered to have been previously enrolled and, therefore, are
not subject to the prior enrollment restriction.
Reason: These interim final regulations implement the statutory
clarification concerning prior enrollment and clarify that we do not
consider transfer students to have been previously enrolled.
Rigorous Secondary School Program of Study (Sec. 691.16)
Statute: Section 401A(f) of the HEA, as amended by section 10(a)(3)
of the ECASLA and section 401(c)(3) of the HEOA, require the Secretary
to recognize not less than one rigorous secondary school program of
study in each State for the purpose of determining student eligibility
for an ACG.
Section 401A(c)(3)(A)(i)(I) of the HEA provides that a rigorous
secondary school program of study established by a State educational
agency (SEA) or local educational agency (LEA) after January 1, 2006,
but before July 1, 2009, and recognized by the Secretary continues to
be an eligible rigorous secondary school program of study for a first-
year ACG. Section 401A(c)(3)(B)(i)(I) of the HEA provides that a
rigorous secondary school program of study established by an SEA or LEA
after January 1, 2005, but before July 1, 2009, and recognized by the
Secretary continues to be an eligible rigorous secondary school program
of study for a second-year ACG. Section 401A(c)(3)(A)(i)(II)(aa) and
401A(c)(3)(B)(i)(II)(aa) of the HEA provides that a rigorous secondary
school program includes any secondary school program of study that, on
or after July 1, 2009, a designated official recognizes--in a report to
the Secretary--as a rigorous secondary school program of study that
prepares students for college. Section 401A(c)(3)(A)(i)(II)(bb) and
(c)(3)(B)(i)(II)(bb) of the HEA further provides that a rigorous
secondary school program includes any secondary school program of study
recognized as rigorous by the Secretary in regulations that were in
effect on May 6, 2008.
Current Regulations: Current Sec. 691.16(a) provides that, for an
award year, the Secretary recognizes in each State at least one
rigorous secondary school program of study established by an SEA or, if
authorized by the State to establish a separate secondary school
program of study, an LEA. Current Sec. 691.16(d) provides that, in
addition to those programs established by States and LEAs and
recognized by the Secretary under Sec. 691.16(b) and (c), the
Secretary recognizes certain other secondary school programs of study
as rigorous, including continued recognition of advanced or honors
secondary school programs of study by the Secretary for school years
subsequent to the 2005-2006 school year. Also under current Sec.
691.16(d)(4) and (d)(5), successful completion of a secondary school
program that includes at least two AP or IB courses and scoring a 3 or
higher on the corresponding AP exams or a 4 or higher on the
corresponding IB exams is considered by the Secretary to demonstrate
that the student completed a rigorous secondary school program of
study. Furthermore, under current Sec. 691.16(d)(2), the Secretary
recognizes successful completion of the following coursework to fulfill
the requirement that a student complete a rigorous secondary school
program of study: four years of English; three years of mathematics,
including Algebra I and a higher level class such as Geometry; three
years of science, including one year each of at least two of the
following courses: Biology, Chemistry, and Physics; three years of
social studies; and one year of a language other than English.
Current Sec. 691.16(b)(2) allows SEAs and LEAs to request
recognition of rigorous secondary school programs of study for school
years beyond the immediate next school year.
Pursuant to current Sec. 691.16(e), the Secretary publishes a list
of rigorous secondary school programs of study that the Secretary
recognizes.
Regulations: We are amending and reorganizing current Sec. 691.16
by removing paragraphs (a) and (c) because these provisions apply to
the Secretary's recognition of rigorous secondary school programs of
study as established by an SEA or LEA. Effective July 1, 2009, the
Secretary will no longer recognize new
[[Page 20216]]
rigorous secondary school programs of study submitted by an SEA or LEA;
thus paragraphs (a) and (c) are no longer needed. As a result of
removing paragraphs (a) and (c) of this section, we are redesignating
paragraphs (b) and (d) as paragraphs (a) and (b), respectively.
We are amending current Sec. 691.16(b) (new Sec. 691.16(a)) to
provide that, starting with the 2009-2010 award year, a designated
official, consistent with State law, may recognize and report to the
Secretary any secondary school programs of study that prepare students
for college and that the designated official deems rigorous. Programs
reported to the Secretary by designated officials under new Sec.
691.16(a) supplement the secondary school programs recognized by the
Secretary as rigorous under the current regulations.
We are amending current Sec. 691.16(b)(1) and (2) (new Sec.
691.16(a)(2)(i) and (ii)) such that a designated official may report to
the Secretary rigorous programs for students graduating during the
current award year and for students graduating during award years
subsequent to the current award year.
We are amending current Sec. 691.16(d) (new Sec. 691.16(b)) by
adding paragraph (b)(6) to include--in the list of preapproved rigorous
secondary school programs of study--any rigorous programs submitted by
States and recognized by the Secretary as rigorous after January 1,
2005, but before July 1, 2009.
Reason: The amendments to Sec. 691.16 implement the statutory
change that, instead of submitting secondary school programs of study
for the Secretary's recognition as rigorous, starting with the 2009-
2010 award year, designated officials report to the Secretary rigorous
secondary school programs of study, including such programs of study in
home schools and private schools, that prepare students for college. As
indicated in the Paperwork Reduction Act of 1995 section of this
notice, we are specifically requesting comments on the most effective
methods by which designated officials would report information about
rigorous secondary school programs of study in private schools and home
schools to the Secretary and how that information would most
effectively be transmitted to institutions to allow them to determine a
student's eligibility for an ACG.
These interim final regulations, consistent with changes made to
the HEA by the HEOA, also retain as rigorous those secondary school
programs of study submitted by States after January 1, 2005 but before
July 1, 2009 and recognized as rigorous by the Secretary. Finally, the
interim final regulations allow designated officials to report their
rigorous programs to the Secretary for both the current and future
award years.
Eligible Majors (Sec. Sec. 691.2(b), 691.15, and 691.17)
Declaring and Documenting a Major (Sec. 691.15)
Statute: Section 401A(c)(3)(C) and (c)(3)(D) of the HEA, as amended
by section 10(a)(3) of the ECASLA, identify the majors that are
eligible for a National SMART Grant for a student in his or her third
or fourth year of undergraduate education at an institution of higher
education. Section 401A(c)(3)(C)(i) of the HEA provides that a student
pursuing a major in the physical, life, or computer sciences,
mathematics, technology, engineering, or a critical foreign language
(which is defined in section 103(3) of the HEA) may be eligible for a
National SMART Grant. Section 401A(c)(3)(D)(i)(I) of the HEA provides
that a student at an institution of higher education that offers a
single liberal arts curriculum that was offered prior to February 8,
2006, under which a student is not permitted to declare a major in a
particular subject area, may receive a National SMART Grant if the
student studies a subject that has requirements that are at least equal
to the requirements for an academic major in the physical, life, or
computer sciences, mathematics, technology, engineering, or a critical
foreign language at another institution of higher education that offers
a baccalaureate degree in that subject. Alternatively, under section
401A(c)(3)(D)(i)(II) of the HEA, a student at such institution may
undertake a rigorous course of study in mathematics, biology,
chemistry, and physics that consists of at least four years of study in
mathematics and three years of study in the sciences, with a laboratory
component in each of those years.
Under section 401A(c)(3)(E) of the HEA, as amended by the ECASLA, a
student may be eligible for a National SMART Grant in his or her fifth
year of undergraduate education if the student pursues a major in the
physical, life, or computer sciences, mathematics, technology,
engineering, or a critical foreign language if an appropriate
institutional official certifies that the program requires five full
years of coursework.
Current Regulations: Current Sec. 691.15(c)(2) requires that, to
be eligible for a National SMART Grant, 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. Under
current Sec. 691.15(c)(2), 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 the case of a student who has declared or
intends to declare an eligible major, the student must enroll in the
courses necessary to complete the degree program and to fulfill the
eligible major requirements.
Current Sec. Sec. 691.15(d)(1) and 691.15(e) specify how an
institution must document a student's declaration of an eligible major,
and progress in the eligible program and major, by requiring the
institution to maintain the following documentation: (a) Documentation
of the declared major or, in the case of a student's intent to declare
a major, a written declaration of intent provided by the student that
has been received recently enough for the institution to determine that
it still correctly reflects the student's stated intent; and (b)
written documentation showing that the student is completing coursework
at an appropriate pace in the student's declared or intended eligible
program and eligible major.
Regulations: Section 691.15(d)(3) exempts a student enrolled in a
qualifying liberal arts curriculum from the requirement that the
student must declare an eligible major to receive a National SMART
Grant.
We also are amending Sec. 691.15(c)(2)(ii) and Sec. 691.15(e) to
provide that an institution need only document a student's progress in
completing the program in the intended or declared National SMART
Grant-eligible program.
Reason: Under the new statutory provision reflected in section
401A(c)(3)(D) of the HEA, a student enrolled in a qualifying liberal
arts curriculum as a major is necessarily enrolled in a National SMART
Grant-eligible major. Because students in a qualifying liberal arts
curriculum do not declare majors, it is not possible for the
institution to document the student's declaration of a major as
required under the current regulations. We are, therefore, removing the
documentation requirement for students in qualifying liberal arts
curricula.
In addition, a major change to the National SMART Grant Program is
the extension of eligibility to otherwise eligible students who are
enrolled less
[[Page 20217]]
than full-time but at least half-time. A student who is enrolled on a
less-than-full-time basis would have difficulty enrolling in a course
in the eligible major each payment period as currently required because
a part-time student will typically only enroll in two or three courses
in a payment period. Thus, even though the part-time student could be
progressing in a satisfactory manner in his or her program, the student
would be ineligible for a National SMART Grant under the current
requirements. Sections 691.15(c)(2) and (e), therefore, amend the
current regulations to require an institution to document a student's
progress in completing the program in the intended or declared National
SMART Grant-eligible program rather than coursework strictly specific
to the academic major's requirements each payment period.
Determination of Eligible Majors (Sec. Sec. 691.2(b) and 691.17)
Statute: Section 401A(c)(3)(C) and (D) of the HEA, as amended by
section 10(a)(3) of the ECASLA, identifies the majors that a student
must pursue to be eligible for a National SMART Grant in his or her
third or fourth year of undergraduate education at an institution of
higher education.
Specifically, section 401A(c)(3)(C)(i) of the HEA provides that a
student pursuing a major in the physical, life, or computer sciences,
mathematics, technology, engineering, or a critical foreign language is
eligible for a National SMART Grant, provided the student meets other
eligibility criteria.
Section 401A(c)(3)(D) of the HEA extends eligibility for a National
SMART Grant to a student enrolled in a program at an institution of
higher education that offers a single liberal arts curriculum leading
to a baccalaureate degree that was offered prior to February 8, 2006,
and under which the student is not permitted to declare a major in a
particular subject area. A student in this type of program may receive
a National SMART Grant if (a) the student studies a subject that has
requirements that are at least equal to the requirements for an
academic major in the physical, life, or computer sciences,
mathematics, technology, engineering, or a critical foreign language at
another institution of higher education that offers a baccalaureate
degree in that subject and the student has obtained a cumulative grade
point average of at least 3.0 in the relevant coursework (see section
401A(c)(3)(D)(i)(I) of the HEA); or (b) the student undertakes a
rigorous course of study in mathematics, biology, chemistry, and
physics that consists of at least four years of study in mathematics
and three years of study in the sciences, with a laboratory component
in each of those years (see section 401A(c)(3)(D)(i)(II) of the HEA).
Section 401A(c)(3)(E) of the HEA, as amended by the ECASLA,
identifies the majors a student must pursue to be eligible for a
National SMART Grant in his or her fifth year of undergraduate
education. These majors are the same as those identified for
eligibility for third- and fourth-year National SMART Grants except
that the major may not be a liberal arts curriculum.
Current Regulations: Current Sec. 691.17(a) provides that, for
each award year, the Secretary identifies eligible majors in the
physical, life, or computer sciences, mathematics, technology,
engineering, and, after consulting with the Director of National
Intelligence, critical foreign languages.
Regulations: Section 691.17(a) amends the current regulations to
incorporate the new definition of a ``critical foreign language'' found
in section 103(3) of the HEA. Current Sec. 691.17(b) is removed and
replaced with a new Sec. 691.17(b) to include a qualifying liberal
arts curriculum as an eligible major. Section 691.17(d) amends the
current regulations for designating an additional eligible major by
adding a requirement that an institution requesting designation of a
liberal arts curriculum as an eligible major submit, in addition to the
information requested in Sec. 691.17(d)(1), information demonstrating
that the liberal arts curriculum complies with the requirements in new
Sec. 691.17(b).
Reason: The interim final regulations are necessary to implement
the statutory provisions that expand the list of majors eligible for a
National SMART Grant and to provide a mechanism for an institution to
request designation of a qualifying liberal arts curriculum as a
National SMART Grant-eligible major.
Calculation of a Grant (Sec. 691.62)
Statute: Section 10(a)(3) of the ECASLA amends section 401A(c) of
the HEA to provide that a student enrolled or accepted for enrollment
in an institution of higher education on not less than a half-time
basis may be an eligible student. Section 10(a)(4) of the ECASLA amends
section 401A(d)(1)(B) of the HEA to clarify that, in any case in which
a student attends on a less than full-time basis, the student's grant
amount shall be reduced in the same manner as a Federal Pell Grant is
reduced under section 401(b)(2)(B) of the HEA.
Current Regulations: Current Sec. 691.62(b) describes the maximum
ACG and National SMART Grant Scheduled Award amounts for an eligible
full-time student, but does not provide annual award amounts for three-
quarter-time and half-time students.
Regulations: We are amending Sec. 691.62 by adding paragraphs (c)
and (d) to describe the ACG and National SMART Grant annual award
amounts for full-time, three-quarter-time, and half-time students.
Reason: We are adding Sec. 691.62(c) and (d) in conjunction with
other changes to Subpart F, to ensure compliance with the statutory
requirement that a student's payments be adjusted based on the
student's enrollment status during a payment period consistent with the
calculation of a payment for a payment period under the Federal Pell
Grant Program.
Calculation of a Grant for a Payment Period (Sec. Sec. 691.63 and
691.66)
General
Statute: Section 10(a)(3) of the ECASLA amends section 401A(c) of
the HEA to provide that a student enrolled or accepted for enrollment
in an institution of higher education on not less than a half-time
basis may be an eligible student. Section 10(a)(4) of the ECASLA also
amends section 401A(d)(1)(B)(i) of the HEA to provide that, in any case
in which a student attends on a less than full-time basis, the
student's grant amount shall be reduced in the same manner as a Federal
Pell Grant is reduced under section 401(b)(2)(B) of the HEA.
Current Regulations: Current Sec. 691.63 provides that an ACG or a
National SMART Grant payment for a payment period is calculated only on
the basis of the ACG or National SMART Grant Scheduled Award. This
section does not address how an ACG Grant or a National SMART Grant
payment for a payment period is calculated for less-than-full-time
students.
Regulations: We are amending Sec. 691.63(h) to describe how ACG
and National SMART Grant payments for a payment period are calculated
for full-time, three-quarter-time, and half-time students. In addition,
throughout Sec. 691.63, except as provided in Sec. 691.63(e), we
change references from ``Scheduled Award'' to ``annual award under
Sec. 691.62'' to account for a student's enrollment status as a full-
time, three-quarter-time, or half-time student in calculating the
student's payment for a payment period.
Finally, we are adding a new Sec. 691.66 to address how
institutions of higher education calculate an ACG and a National SMART
Grant payment for a
[[Page 20218]]
payment period in a program of study offered by correspondence.
Conforming changes are also made to Sec. 686.25 and Sec. 690.66.
Reason: We are amending Sec. 691.63 and adding Sec. 691.66, in
conjunction with other changes to Subpart F, to ensure compliance with
the statutory requirement that a student's payments be adjusted based
on the student's enrollment status during a payment period and that a
student enrolled at least half-time in a program of study offered by
correspondence would be eligible for an ACG or a National SMART Grant.
Payment Period and Grade Level Progression
Statute: As discussed elsewhere in this notice, section 10 of the
ECASLA amends the provisions of section 401A of the HEA by replacing
the term ``academic year'' with the term ``year'' in those instances
related to determining a student's period of eligibility for an ACG or
a National SMART Grant (e.g., section 401A(b), (c)(3), (d)(1)(A)(iii)
and (d)(2) of the HEA).
Current Regulations: Current Sec. 691.63(h) provides that a
student may not progress to the next academic year during a payment
period.
Regulations: We are amending Sec. 691.63(h) to provide that a
student may not progress to the next year in a grade level (rather than
next academic year) during a payment period.
Reason: We are making this change because eligibility for the ACG
and National SMART Grant programs is no longer based on the student's
academic year standing. Eligibility is based on ``year,'' which refers
to a student's grade level consistent with the FFEL and Direct Loan
programs.
Executive Order 12866
1. 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 Office
of Management and Budget (OMB). Section 3(f) of Executive Order 12866
defines a ``significant regulatory action'' as an action likely to
result in a rule that may (1) have an annual effect on the economy of
$100 million or more, or adversely affect a sector of the economy,
productivity, competition, jobs, the environment, public health or
safety, or State, local or tribal governments or communities in a
material way (also referred to as an ``economically significant''
rule); (2) create serious inconsistency or otherwise interfere with an
action taken or planned by another agency; (3) materially alter the
budgetary impacts of entitlement grants, user fees, or loan programs or
the rights and obligations of recipients thereof; or (4) raise 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 interim final 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)(1) of Executive Order 12866.
Need for Federal Regulatory Action
These interim final regulations address a range of issues affecting
students and institutions of higher education participating in the ACG
and National SMART Grant programs. They are needed to implement
statutory changes enacted through the ECASLA and the HEOA.
Regulatory Alternatives Considered
The Department cannot modify statutory program requirements through
regulations. Because the interim final regulations merely implement
specific statutory provisions, the Department had extremely limited
discretion to consider alternative approaches. In general, as discussed
in detail under the Reason sections that accompany the discussion of
each interim final regulatory provision, the Department used this
limited discretion to minimize burden and complexity and, to the extent
possible, mirror comparable regulations for other student aid programs.
In assessing the budgetary impact of these alternatives, the Department
considered the effect of possible changes on student eligibility for
ACG and National SMART Grant awards and on the size or timing of
student awards. In all cases, the alternatives considered did not have
a measurable effect on Federal costs.
Transfers
These interim final regulations broaden access to the ACG and
National SMART Grant programs by implementing statutory changes that
extend eligibility to part-time students who are enrolled at their
institution on at least a half-time basis, eligible non-citizens, and
students enrolled in certain certificate programs. The interim final
regulations also allow eligible degree programs with at least five full
undergraduate years to award National SMART Grant awards in the third,
fourth, and fifth years of the program. Mandatory funding for the ACG
and National SMART Grant programs is provided through fiscal year 2010,
after which the program would sunset. Funds for fiscal year 2010 would
be used to support the 2010-2011 award year. The Department estimates
that changes implemented through these interim final regulations, which
become effective July 1, 2009, will result in 538,000 additional awards
totaling $448 million over award years 2009-2010 and 2010-2011. More
specifically, under current estimates, expanding eligibility to less-
than-full-time students, eligible non-citizens, and students at
certificate programs will increase ACG awards by 209,000 in 2009-2010
and 241,000 in 2010-2011 and increase National SMART Grant awards by
43,000 in 2009-2010 and 45,000 in 2010-2011.
Other changes in these interim final regulations implement
statutory changes replacing the term ``academic year'' with the term
``year'' for the purposes of determining a student's period of
eligibility for an ACG or a National SMART Grant. These changes are
expected to significantly simplify the process of determining
eligibility for participating institutions of higher education and
students.
As noted, statutory changes in program eligibility criteria
implemented by these interim final regulations will increase the dollar
amount of grant awards under the ACG and National SMART Grant programs
by $448 million over award years 2009-2010 and 2010-2011. This will
increase Federal costs by the same amount.
Because institutions of higher education affected by these interim
final regulations already participate in the ACG and National SMART
Grant programs, these schools must have already established systems and
procedures to meet program eligibility requirements. The interim final
regulations reflect discrete changes in specific parameters associated
with the Department's existing regulations for these programs, rather
than entirely new requirements. Accordingly, entities wishing to
continue to participate in the 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
one-time changes that, while possibly significant in some cases, are an
unavoidable cost of continued program participation.
Elsewhere in this SUPPLEMENTARY INFORMATION section, we identify
and
[[Page 20219]]
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 1, we have
prepared an accounting statement showing the classification of the
expenditures associated with the provisions of these interim final
regulations. As shown in the table, the Department estimates that these
interim final regulations will increase Federal grant payments to
students by $448 million.
Table 1--Accounting Statement: Classification of Estimated Savings
[In millions]
------------------------------------------------------------------------
Category Transfer
------------------------------------------------------------------------
Annualized monetized transfers.............................. $448
------------------------------------------------------------------------
2. Clarity of the Regulations
Executive Order 12866 and the Presidential memorandum on ``Plain
Language in Government Writing'' require each agency to write
regulations that are easy to understand.
The Secretary invites comments on how to make these interim final
regulations easier to understand, including answers to questions such
as the following:
Are the requirements in the interim final regulations
clearly stated?
Do the interim final regulations contain technical terms
or other wording that interferes with their clarity?
Does the format of the interim final regulations (grouping
and order of sections, use of headings, paragraphing, etc.) aid or
reduce their clarity?
Would the interim final regulations be easier to
understand if we divided them into more (but shorter) sections? (A
``section'' is preceded by the symbol ``Sec. '' and a numbered heading;
for example, Sec. 691.16 Rigorous Secondary School Program of Study.)
Could the description of the interim final regulations in
the SUPPLEMENTARY INFORMATION section of this preamble be more helpful
in making the interim final regulations easier to understand? If so,
how?
What else could we do to make the interim final
regulations easier to understand?
To send any comments that concern how the Department could make
these interim final regulations easier to understand, see the
instructions in the ADDRESSES section of this preamble.
Regulatory Flexibility Act Certification
The Secretary certifies that these interim final regulations will
not have a significant economic impact on a substantial number of small
entities. These interim final regulations affect institutions of higher
education, States, State agencies, and individual students. The U.S.
Small Business Administration (SBA) Size Standards define these
institutions as ``small entities'' if they are for-profit or nonprofit
institutions with total annual revenue below $5,000,000 or if they are
institutions controlled by governmental entities with populations below
50,000. Individuals are not defined as ``small entities'' under the
Regulatory Flexibility Act.
A significant percentage of the schools participating in the ACG
and National SMART Grant programs meet the definition of ``small
entities.'' While these schools fall within the SBA size guidelines,
these interim final regulations do not impose significant new costs on
these entities.
Specific burden concerns are discussed in more detail elsewhere in
this preamble, primarily in the Paperwork Reduction Act of 1995
section.
Paperwork Reduction Act of 1995
Sections 691.15 and 691.16 contain information collection
requirements. Under the Paperwork Reduction Act of 1995 (44 U.S.C.
3507(d)), the Department has submitted a copy of these sections to OMB
for its review.
Section 691.15(a)--Eligibility To Receive a Grant
The interim final regulations amend the eligibility requirements to
receive an ACG or a National SMART Grant by removing several
restrictive criteria. Currently, only students who are U.S. citizens
are eligible to receive an ACG or a National SMART Grant. Under these
interim final regulations, and consistent with other Title IV, HEA
programs, in addition to U.S. citizens, students who can provide
evidence from the United States Citizenship and Immigration Service, an
office of the United States Department of Homeland Security, that they
are in the United States for other than a temporary purpose with the
intention of becoming a citizen or permanent resident, may qualify as
eligible non-citizens for the ACG and National SMART Grant programs.
The requirement that a student be enrolled on a full-time basis is
also removed. Under these interim final regulations, students enrolled
on at least a half-time or greater basis may be eligible to receive an
ACG or a National SMART Grant.
The interim final regulations provide that the restriction on prior
postsecondary enrollment does not apply to students who were enrolled
as regular students in an eligible program of undergraduate education
that was also part of a secondary school program of study. We also
clarify that transfer students who are first-year students are not
considered to have been previously enrolled and, therefore, are not
subject to the prior enrollment restriction.
It is estimated that these changes regarding student eligibility
will result in an increase in the burden hours associated with the
programs through the Common Origination and Disbursement (COD) System.
We estimate that the interim final regulations will increase burden for
institutions of higher education by 12,412 hours, under OMB Control
Number 1845-0039.
Section 691.16--Rigorous Secondary School Program of Study
The interim final regulations amend the current regulations to
provide that, starting with the 2009-2010 award year, a designated
official, consistent with State law, may recognize and report any
information to the Secretary about rigorous secondary school programs
of study that prepare students for college. These rigorous programs
provide an option by which a student could meet the rigorous secondary
school program of study requirement for receipt of an ACG.
Consistent with the amendments to section 401A of the HEA, rigorous
programs submitted by States and recognized by the Secretary as
rigorous after January 1, 2005, but before July 1, 2009, will continue
to be listed in the document published annually by the Secretary
listing rigorous secondary school programs of study. This listing also
includes the new rigorous secondary programs of study as reported to
the Department for students graduating during the current award year
and for students graduating during award years subsequent to the
current award year. In addition to any new programs of study, the
information that designated officials report to the Department about
rigorous secondary school programs of study also includes changes to
previously reported rigorous programs of study or any deleted rigorous
programs of study. Consistent
[[Page 20220]]
with the deadline set by the Secretary for reporting rigorous high
school programs to the Department, we expect that 56 SEAs reporting for
the State (and/or on behalf of the State's LEAs) will be reporting to
the Department annually. In addition, designated officials will report
information regarding the rigorous programs offered by private and home
schools for an estimated 36,000 high school students who attend private
high schools and home schools for the year of the students' secondary
school graduation or completion. We specifically request comments on
the most effective methods by which designated officials would report
information about rigorous secondary school programs of study in
private schools and home schools to the Secretary and how that
information would most effectively be transmitted to institutions to
allow them to determine a student's eligibility for an ACG.
It is estimated that these changes regarding reporting of rigorous
secondary school programs of study will result in an increase in burden
hours. We estimate that the interim final regulations will increase
burden for States, private high schools, home schools, and individuals
by 18,280 hours, under new OMB Control Number 1845-XXXX.
Collection of Information
------------------------------------------------------------------------
Information
Regulatory section collection Collection
------------------------------------------------------------------------
691.15...................... This interim final OMB 1845-0039.
regulation expands This is a revision
student eligibility of an existing
requirements for collection which is
the ACG and being submitted to
National SMART OMB with these
Grant programs. interim final
regulations.
691.16...................... This interim final OMB 1845-XXXX. This
regulation provides will be a new
for States to collection. A
report new, separate 60-day
changed, or deleted Federal Register
rigorous secondary notice will be
programs of study. published to
solicit comment on
this form once it
is developed.
------------------------------------------------------------------------
If you want to comment on the information collection requirements,
please send your comments to the Office of Information and Regulatory
Affairs, OMB, Attention: Desk Officer for U.S. Department of Education.
Send these comments by e-mail to OIRA_DOCKET@omb.eop.gov or by fax to
(202) 395-6974. Commenters need only submit comments via one submission
method. You may also send a copy of these comments to the Department
contact named in the ADDRESSES section of this preamble.
We consider your comments on these collections of information in--
Deciding whether the 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 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 interim final 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. This does not affect the deadline for your comments to us
on the interim final regulations.
Intergovernmental Review
These programs are subject to Executive Order 12372 and the
regulations in 34 CFR part 79. One of the objectives of the Executive
order is to foster an intergovernmental partnership and a strengthened
federalism. The Executive Order relies on processes developed by State
and local governments for coordination and review of proposed Federal
financial assistance.
This document provides early notification of our specific plans and
actions for this program.
Assessment of Educational Impact
We 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. However, in accordance
with section 411 of the General Education Provisions Act, 20 U.S.C.
1221e-4, the Secretary requests comments on whether these interim final
regulations would require transmission of information that any other
agency or authority of the United States gathers or makes available.
Electronic Access to This Document
You may view this document, 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.
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.
You may also view this document in PDF format at the following
site: http://www.ifap.ed.gov/ifap/index.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.gpoaccess.gov/
nara/index.html.
(Catalog of Federal Domestic Assistance Numbers: 84.063 Federal Pell
Grants; 84.375 Academic Competitiveness Grants; 84.376 National
SMART Grants; 84.379 TEACH Grants)
List of Subjects in 34 CFR Parts 668, 686, 690, and 691
Colleges and universities, Elementary and secondary education,
Grant programs education, Student aid.
Dated: April 28, 2009.
Arne Duncan,
Secretary of Education.
0
For the reasons discussed in the preamble, the Secretary amends parts
668, 686, 690, and 691 of 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:
[[Page 20221]]
Authority: 20 U.S.C. 1001, 1002, 1003, 1070g, 1085, 1088, 1091,
1092, 1094, 1099c, and 1099c-1, unless otherwise noted.
Sec. 668.32 [Amended]
0
2. Section 668.32(a)(2) is amended by:
0
A. Adding the words ``ACG, National SMART Grant,'' after the words
``For purposes of the''.
0
B. Adding the punctuation ``,'' after the word ``FFEL''.
Sec. 668.33 [Amended]
0
3. Section 668.33 is amended by:
0
A. In paragraph (a), introductory text, removing the words ``paragraphs
(b) and (c)'' and adding, in their place, the words ``paragraph (b)''.
0
B. Removing paragraph (c).
0
C. Redesignating paragraph (d) as paragraph (c).
PART 686--TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER
EDUCATION (TEACH) GRANT PROGRAM
0
4. The authority citation for part 686 continues to read as follows:
Authority: 20 U.S.C. 1070g, et seq., unless otherwise noted.
Sec. 686.22 [Amended]
0
5. Section 686.22 is amended in paragraph (f), by removing the words
``or (e)'' both times they appear.
Sec. 686.25 [Amended]
0
6. Section 686.25 is amended by:
0
A. Removing paragraph (b)(1).
0
B. Redesignating paragraphs (b)(2)(i) and (b)(2)(ii) as paragraphs
(b)(1) and (b)(2), respectively.
0
C. In paragraph (c)(2)(i), adding the words ``to calculate the payment
for the payment period'' after the word ``used''.
0
D. In paragraph (c)(2)(ii), adding the words ``to calculate the payment
for the payment period'' after the word ``used''.
PART 690--FEDERAL PELL GRANT PROGRAM
0
7. The authority citation for part 690 continues to read as follows:
Authority: 20 U.S.C. 1070a, 1070g, unless otherwise noted.
0
8. Section 690.63 is amended by:
0
A. Revising paragraph (d)(1)(i).
0
B. In paragraph (f), removing the words ``or (e)'' both times they
appear and removing the word ``paragraphs'' and adding, in its place,
the word ``paragraph''.
The revision reads as follows:
Sec. 690.63 Calculation of a Federal Pell Grant for a payment period.
* * * * *
(d) * * *
(1)(i) Determining his or her enrollment status for the term;
Sec. 690.66 [Amended]
0
9. Section 690.66 is amended by:
0
A. Removing paragraph (b)(1).
0
B. Redesignating paragraphs (b)(2)(i) and (b)(2)(ii) as paragraphs
(b)(1) and (b)(2), respectively.
0
C. In newly redesignated paragraph (b)(1), removing the parenthetical
``(4)''.
0
D. In newly redesignated paragraph (b)(2), removing the parentheticals
``(a)(4)'' and adding, in their place, the words ``paragraph (a)''.
0
E. In paragraphs (c)(2)(i) and (c)(2)(ii), adding the words ``to
calculate the payment for the payment period'' after the word ``used''
both times it is used.
PART 691--ACADEMIC COMPETITIVENESS GRANT (ACG) AND NATIONAL SCIENCE
AND MATHEMATICS ACCESS TO RETAIN TALENT GRANT (NATIONAL SMART
GRANT) PROGRAMS
0
10. The authority citation for part 691 continues to read as follows:
Authority: 20 U.S.C. 1070a-1, unless otherwise noted.
Sec. 691.1 [Amended]
0
11. Section 691.1(b) is amended by removing the words ``and fourth-
year'' and adding, in their place, the words ``, fourth-, and, in the
case of a program with at least five full years, fifth-year''.
0
12. Section 691.2 is amended by:
0
A. In paragraph (a), adding, in alphabetical order, the term ``Federal
Family Education Loan (FFEL) Programs''.
0
B. In paragraph (b), adding, in alphabetical order, the terms ``Half-
time student'', ``Three-quarter time student'', and ``William D. Ford
Federal Direct Loan (Direct Loan) Program''.
0
C. In paragraph (d), revising the definitions of ``ACG Scheduled
Award'', ``Eligible major'', ``Eligible program'', and ``National SMART
Grant Scheduled Award''; and adding, in alphabetical order, the
definition for ``Annual award''.
0
D. Adding a new paragraph (e).
The additions and revisions read as follows:
Sec. 691.2 Definitions.
* * * * *
(d) * * *
ACG Scheduled Award: The maximum amount of an ACG that would be
paid to a full-time first-year student or a full-time second-year
student for the applicable year.
Annual award: The maximum ACG or National SMART Grant amount a
student would receive for enrolling as a full-time, three-quarter-time,
or half-time student and remaining in that enrollment status for one
year.
* * * * *
Eligible major: A major, as identified by the Secretary under Sec.
691.17(a), in one of the physical, life, or computer sciences,
mathematics, technology, engineering, or a critical foreign language as
defined in section 103(3) of the HEA; or a qualifying liberal arts
curriculum as identified by the Secretary under Sec. 691.17(b).
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 an undergraduate program at least one
academic year in length leading to a certificate, is at least 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
years of undergraduate education; or
(2) For purposes of the National SMART Grant Program--
(i) 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 years of undergraduate education; and
(ii) In the case of a five-year program, is a program that--
(A) Requires at least five full undergraduate years to complete, as
certified by an appropriate institutional official in accordance with
the institution's policies and procedures and documented in the
institution's records;
(B) Contains not less than 24 semester hours, 36 quarter credits,
or 900 clock hours in each year of the program, including the fifth
year; and
(C) Is not a program that is a qualifying liberal arts curriculum
identified as an eligible major under Sec. 691.17(b).
(3) For purposes of paragraph (2)(ii)(A) of this definition, the
appropriate official of an institution is the chief executive officer,
provost, dean, academic department chairman, or other official with
responsibility for setting a degree program's coursework.
* * * * *
National SMART Grant Scheduled Award: The maximum amount of a
National SMART Grant that would be paid to a full-time third-year,
fourth-year, or fifth-year student for the applicable year.
* * * * *
(e)(1) As used in this part, the terms ``first-year,'' ``second-
year,'' ``third-
[[Page 20222]]
year,'' ``fourth-year,'' and ``fifth-year'' refer to a student's grade
level in the student's eligible program as determined by the
institution for all students in the eligible program.
(2) A student's grade level for purposes of the ACG and National
SMART Grant programs must be the same grade level as used for
determining annual loan limits under the FFEL and Direct Loan programs
(34 CFR parts 682 and 685).
* * * * *
0
13. Section 691.6 is revised to read as follows:
Sec. 691.6 Duration of student eligibility--undergraduate course of
study.
(a) While enrolled in an ACG-eligible program, a student is
eligible to receive up to one ACG Scheduled Award while enrolled as a
first-year student and one ACG Scheduled Award while enrolled as a
second-year student.
(b)(1) While enrolled in a National SMART Grant-eligible program, a
student is eligible to receive up to one National SMART Grant Scheduled
Award while enrolled as a third-year student, one National SMART Grant
Scheduled Award while enrolled as a fourth-year student, and, in the
case of a National SMART Grant-eligible program with five full years of
coursework, one National SMART Grant Scheduled Award while enrolled as
a fifth-year student.
(2)(i) A student's eligibility to receive up to one National SMART
Grant Scheduled Award as a fourth-year student, in the case of a
National SMART Grant-eligible program with less than five full years of
coursework, extends from the beginning of the student's fourth year
until he or she completes his or her first undergraduate baccalaureate
course of study.
(ii) A student's eligibility to receive up to one National SMART
Grant Scheduled Award as a fifth-year student, in the case of a
National SMART Grant-eligible program with at least five full years of
coursework, extends from the beginning of the student's fifth year
until he or she completes his or her first undergraduate baccalaureate
course of study.
(c) A student may not receive more than two ACG Scheduled Awards
and three National SMART Grant Scheduled Awards during the student's
undergraduate education in all eligible programs.
(Authority: 20 U.S.C. 1070a-1)
0
14. Section 691.8 is amended by:
0
A. In paragraph (b)(1), adding the words ``certificate or'' after the
word ``or'' the first time it appears.
0
B. Adding new paragraphs (c) and (d) to read as follows:
Sec. 691.8 Enrollment status for students taking regular and
correspondence courses.
* * * * *
(c)(1) Notwithstanding the limitation in paragraph (b)(3) of this
section, a student who would be a half-time student based solely on his
or her correspondence work is considered a half-time student unless the
calculation in paragraph (b) of this section produces an enrollment
status greater than half-time.
(2) A student who would be a less-than-half-time student based
solely on his or her correspondence work or based on a combination of
his or her correspondence work and regular coursework is considered a
less-than-half-time student and is ineligible for an ACG or a National
SMART Grant.
(d) The following chart provides examples of the application of the
regulations set forth in this section. It assumes that the institution
of higher education defines full-time enrollment as 12 credits per
term, making half-time enrollment equal to six credits per term.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total course load
Number of credit Number of credit in credit hours
Under Sec. 691.8 hours regular hours to determine Enrollment status
work correspondence enrollment status
--------------------------------------------------------------------------------------------------------------------------------------------------------
(b)(3)...................................... 3 3 6 Half-time.
(b)(3)...................................... 3 6 6 Half-time.
(b)(3)...................................... 3 9 6 Half-time.
(b)(3)...................................... 6 3 9 Three-quarter-time.
(b)(3)...................................... 6 6 12 Full-time.
(b)(3) and (c).............................. 2 6 6 Half-time.
(c) *....................................... ................. ................. ................. Less-than-half-time.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Any combination of regular and correspondence work that is greater than zero, but less than six hours. A less-than-half-time student would be
ineligible for an ACG or a National SMART Grant.
* * * * *
0
15. Section 691.15 is amended by:
0
A. Revising paragraph (a).
0
B. In paragraph (b)(1)(ii), removing the word ``academic''.
0
C. Revising paragraphs (b)(1)(ii)(B) and (b)(1)(ii)(C).
0
D. In paragraph (b)(1)(iii), removing the word ``academic''.
0
E. In paragraph (b)(1)(iii)(B), removing the words ``as determined by
the institution,'', and removing the words ``recognized by the
Secretary''.
0
F. Removing paragraph (b)(1)(iii)(C) and redesignating paragraph
(b)(1)(iii)(D) as paragraph (b)(1)(iii)(C). In newly redesignated
paragraph (b)(1)(iii)(C), removing the word ``academic'' the first time
it appears.
0
G. In paragraph (b)(3)(ii), removing the citation ``691.16(d)(2)'', and
adding, in its place, the citation ``691.16''.
0
H. In paragraph (b)(5)(i), removing the words ``recognized by the
Secretary''.
0
I. In paragraph (c), introductory text, removing the words ``third or
fourth academic'' and adding, in their place, the words ``third,
fourth, or fifth''.
0
J. Removing paragraph (c)(2)(ii).
0
K. Redesignating paragraphs (c)(2)(i)(A) and (c)(2)(i)(B) as paragraphs
(c)(2)(i) and (c)(2)(ii), respectively.
0
L. In newly redesignated paragraph (c)(2)(i), removing the word ``or''.
0
M. In newly redesignated paragraph (c)(2)(ii), removing the word
``and'' the second time it appears and adding, in its place, the word
``or''.
0
N. Adding a new paragraph (c)(2)(iii).
0
O. In paragraph (c)(3), removing the punctuation ``;'' and adding, in
its place, the punctuation ``.''.
0
P. Removing paragraphs (c)(4) and (c)(5).
0
Q. Adding a new paragraph (d)(3).
0
R. In paragraph (e), introductory text, adding the words ``program in
the'' before the word ``intended'', and removing the words ``and major
under paragraph (c)(2)(ii) of this section''.
0
S. In paragraph (f)(1)(i), removing the words ``for one academic year
but less than the credit or clock hours for two academic years'' and
adding, in their place, the words ``to be considered a second-year
student''.
[[Page 20223]]
0
T. In paragraph (f)(1)(ii), removing the words ``for one academic
year'' and adding, in their place, the words ``to be considered a
second-year student''.
0
U. In paragraph (f)(1)(ii)(B), removing the word ``academic''.
The revisions and additions read as follows:
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 is receiving a Federal Pell Grant disbursement in the
same award year.
(b) * * *
(1) * * *
(ii) * * *
(B) Has successfully completed, after January 1, 2006, a rigorous
secondary school program of study under Sec. 691.16;
(C) Has not been previously enrolled as a regular student in an
eligible program of undergraduate education except as part of a
secondary school program of study. A transfer student who is a first-
year student is not considered to have been previously enrolled; and
* * * * *
(c) * * *
(2) * * *
(iii) Is at an institution that offers as an eligible major a
qualifying liberal arts curriculum identified under Sec. 691.17(b);
and
* * * * *
(d) * * *
(3) If the student is enrolled in a qualifying liberal arts
curriculum as a major, there is no requirement to declare a major.
* * * * *
0
16. Section 691.16 is revised to read as follows:
Sec. 691.16 Rigorous secondary school program of study.
(a)(1) For each award year commencing with the 2009-2010 award
year, the Secretary establishes a deadline for submission of
information about secondary school programs of study that are
recognized by a designated official, consistent with State law, to
prepare students for college and that the designated official deems
rigorous.
(2) The designated official may submit information pursuant to
paragraph (a)(1) of this section--
(i) For students graduating during the current award year; and
(ii) For students graduating during one or more specified upcoming
award years.
(b) In addition to those programs reported to the Secretary as
rigorous by the designated official under paragraph (a) of this
section, the following secondary school programs of study are rigorous:
(1) Advanced or honors secondary school programs established by
States and in existence for the 2004-2005 school year or later school
years.
(2) Any secondary school program in which a student successfully
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 from an 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.
(6) Rigorous secondary school programs of study established by an
SEA or, if legally authorized by the State to establish a separate
secondary school program of study, an LEA, where such programs were
recognized by the Secretary as rigorous after January 1, 2005, but
before July 1, 2009.
(Approved by the Office of Management and Budget under control
number 1845-0078]
(Authority: 20 U.S.C. 1070a-1)
0
17. Section 691.17 is amended by:
0
A. In paragraph (a), removing the words ``or, as determined under
paragraph (b) of this section, critical foreign languages.'' and
adding, in their place, the words ``critical foreign languages as
defined in section 103(3) of the HEA, or a qualifying liberal arts
curriculum as an eligible major as determined under paragraph (b) of
this section.''
0
B. Revising paragraph (b).
0
C. Redesignating paragraphs (d)(1) and (d)(2) as paragraphs (d)(2) and
(d)(4), redesignating the introductory text after the heading of
paragraph (d) as paragraph (d)(1), and adding a new paragraph (d)(3).
0
D. In paragraph (e), removing the words ``under paragraph (a) of this
section''.
The revisions and additions read as follows:
Sec. 691.17 Determination of eligible majors.
* * * * *
(b) Qualifying liberal arts curriculum as an eligible major. The
Secretary may designate a baccalaureate-degree liberal arts curriculum
as an eligible major if--
(1) The curriculum is the only curriculum at the institution of
higher education and was offered prior to February 8, 2006;
(2) A student is not allowed to declare a major in a particular
subject area; and
(3) The Secretary determines that the curriculum--
(i) Is at least equal to the requirements for an identified
National SMART Grant-eligible major at an institution of higher
education that offers a baccalaureate degree in that eligible major; or
(ii) Requires the student to undertake a rigorous course of study
in mathematics, biology, chemistry, and physics that consists of at
least four years of study in mathematics and three years of study in
the sciences, with a laboratory component in each of those years.
* * * * *
(d) * * *
(3) In addition to the information in paragraph (d)(2) of this
section, requests for designation of a liberal arts curriculum as an
eligible major must include the information demonstrating that the
liberal arts curriculum complies with the requirements described in
paragraph (b) of this section.
* * * * *
0
18. Section 691.62 is amended by:
0
A. In paragraph (b), removing the word ``academic'' each time it
appears.
0
B. In paragraph (b)(2), removing the words ``third and fourth
academic'' and adding, in their place, the words ``third, fourth, and
fifth''.
0
C. Redesignating paragraph (c) as paragraph (f).
0
D. Adding new paragraphs (c), (d), and (e).
0
E. In newly redesignated paragraph (f), removing the words ``for an
academic year''.
The additions read as follows:
[[Page 20224]]
Sec. 691.62 Calculation of a grant.
* * * * *
(c) The ACG first-year annual award for--
(1) A full-time student is the lesser of $750 or a reduced ACG
Scheduled Award as determined under paragraph (a)(2) of this section;
(2) A three-quarter-time student is the lesser of $562.50 or 75
percent of a reduced ACG Scheduled Award; and
(3) A half-time student is the lesser of $375 or 50 percent of a
reduced ACG Scheduled Award.
(d) The ACG second-year annual award for--
(1) A full-time student is the lesser of $1,300 or a reduced ACG
Scheduled Award as determined under paragraph (a)(2) of this section;
(2) A three-quarter-time student is the lesser of $975 or 75
percent of a reduced ACG Scheduled Award; and
(3) A half-time student is the lesser of $650 or 50 percent of a
reduced ACG Scheduled Award.
(e) The National SMART Grant annual award for--
(1) A full-time student is the lesser of $4,000 or a reduced
National SMART Grant Scheduled Award as determined under paragraph
(a)(2) of this section;
(2) A three-quarter-time student is the lesser of $3,000 or 75
percent of a reduced National SMART Grant Scheduled Award; and
(3) A half-time student is the lesser of $2,000 or 50 percent of a
reduced National SMART Grant Scheduled Award.
* * * * *
0
19. Section 691.63 is amended by:
0
A. In paragraph (b)(1), removing the word ``Confirming'' and adding, in
its place, the word ``Determining'', and removing the word ``full-
time''.
0
B. In paragraph (b)(2), removing the word ``Determining'' and adding,
in its place, the words ``Based upon that enrollment status,
determining'', and removing the words ``Scheduled Award; and'' and
adding, in their place, the words ``annual award under Sec. 691.62;
and''.
0
C. In paragraph (b)(3)(ii), removing the words ``Scheduled Award'' and
adding, in their place, the words ``annual award''.
0
D. In paragraph (b)(3)(ii)(A), removing the words ``Scheduled Award''
and adding, in their place, the words ``annual award''.
0
E. In paragraph (c)(1), removing the word ``Confirming'' and adding, in
its place, the word ``Determining''; and removing the word ``full-
time''.
0
F. In paragraph (c)(2), removing the word ``Determining'' and adding,
in its place, the words ``Based upon that enrollment status,
determining'', and removing the words ``Scheduled Award;'' and adding,
in their place, the words ``annual award under Sec. 691.62;''.
0
G. In paragraph (c)(3), removing the words ``Scheduled Award'' and
adding, in their place, the words ``annual award'', and adding in the
denominator of each equation the words ``of instructional time''
immediately after the word ``weeks''.
0
H. In paragraph (c)(4)(ii), removing the words ``Scheduled Award'' and
adding, in their place, the words ``annual award'' each time they
appear.
0
I. Removing paragraph (d)(2).
0
J. Redesignating paragraphs (d)(1)(i) and (d)(1)(ii) as paragraphs
(d)(1) and (d)(2), respectively.
0
K. Revising newly redesignated paragraphs (d)(1) and (d)(2).
0
L. In paragraph (d)(3), removing the words ``Scheduled Award'' and
adding, in their place, the words ``annual award''.
0
M. In paragraph (e)(1), removing the word ``full-time'' and adding, in
its place, the word ``half-time''.
0
N. In paragraph (f), removing the words ``Scheduled Award'' and adding,
in their place, the words ``annual award'' both times they appear,
removing the word ``paragraphs'' the first time it appears and adding,
in its place, the word ``paragraph'', and removing the words ``or (e)''
both times they appear.
0
O. Revising paragraph (h).
The revisions read as follows:
Sec. 691.63 Calculation of a grant for a payment period.
* * * * *
(d) * * *
(1) Determining his or her enrollment status for the term;
(2) Based upon that enrollment status, determining his or her ACG
or National SMART Grant annual award under Sec. 691.62; and
* * * * *
(h) Payment period and grade level progression. A student may not
progress to the next year during a payment period. The student's
payment for the payment period--
(1) Is from the ACG or National SMART Grant Scheduled Award of the
year being completed; and
(2) Is calculated based on the student's credit or clock hours for
the payment period, and weeks of instructional time in the payment
period.
* * * * *
Sec. 691.64 [Amended]
0
20. Section 691.64(b) is amended by removing the words ``an academic''
and adding, in their place, the word ``a''.
Sec. 691.65 [Amended]
0
21. Section 691.65 is amended by:
0
A. In the section heading, removing the words ``: Attendance at more
than one institution during an academic year''.
0
B. In paragraph (c), removing the word ``academic'' the first time it
appears; and removing the words ``that academic year'' and adding, in
their place, the words ``the student's year at the second
institution''.
0
C. In paragraph (d), removing the word ``academic''.
0
D. In paragraph (f), removing the words ``an academic'' and adding, in
their place, the word ``a''.
* * * * *
0
22. Section 691.66 is added to read as follows:
Sec. 691.66 Correspondence study.
(a) An institution calculates the ACG or National SMART Grant for a
payment period for a student in a program of study offered by
correspondence courses without terms, but not including any residential
component, by--
(1) Determining that the student is attending at least half-time;
(2) Determining the student's half-time annual award determined
under Sec. 691.62; and
(3) Multiplying the student's half-time annual award by the lesser
of--
(i)
[GRAPHIC] [TIFF OMITTED] TR01MY09.024
or
[[Page 20225]]
[GRAPHIC] [TIFF OMITTED] TR01MY09.025
(b) For purposes of paragraph (a) of this section--
(1) The institution must make the first payment to a student for an
academic year, as calculated under paragraph (a) of this section, after
the student submits 25 percent of the lessons or otherwise completes 25
percent of the work scheduled for the program or the academic year,
whichever occurs last; and
(2) The institution must make the second payment to a student for
an academic year, as calculated under paragraph (a) of this section,
after the student submits 75 percent of the lessons or otherwise
completes 75 percent of the work scheduled for the program or the
academic year, whichever occurs last.
(c) In a program of correspondence study offered by correspondence
courses using terms but not including any residential component--
(1) The institution must prepare a written schedule for submission
of lessons that reflects a workload of at least 30 hours of preparation
per semester hour or 20 hours of preparation per quarter hour during
the term;
(2)(i) If the student is enrolled in at least 6 credit hours that
commence and are completed in that term, the student's half-time annual
award determined under Sec. 691.62 is used to calculate the payment
for the payment period; or
(ii) If the student is enrolled in less than 6 credit hours that
commence and are completed in that term, the student is not eligible
for an ACG and National SMART Grant;
(3) A payment for a payment period is calculated using the formula
in Sec. 691.63(d) except that paragraphs (c)(1) and (c)(2) of this
section are used in lieu of Sec. 691.63(d)(1) and (2), respectively;
and
(4) The institution must make the payment to a student for a
payment period after that student completes 50 percent of the lessons
or otherwise completes 50 percent of the work scheduled for the term,
whichever occurs last.
(d) Payments for periods of residential training must be calculated
under Sec. 691.63(d) if the residential training is offered using
terms and credit hours or Sec. 691.63(e) if the residential training
is offered using credit hours without terms.
(Authority: 20 U.S.C. 1070a-1)
Sec. 691.75 [Amended]
0
23. Section 691.75 is amended by:
0
A. In paragraph (a)(3), removing the words ``a full-time'' and adding,
in their place, the words ``at least a half-time''.
0
B. In paragraph (b)(2), removing the word ``academic'', and removing
the citation ``691.15(b)(1)(iii)(D)'', and adding, in its place, the
citation ``691.15(b)(1)(iii)(C)''.
0
C. In paragraph (c), removing the citation ``691.15(b)(1)(iii)(D)'',
and adding, in its place, the citation ``691.15(b)(1)(iii)(C)''.
0
D. In paragraph (d)(1)(i), removing the word ``academic'', and removing
the citation ``691.15(b)(1)(iii)(D)'', and adding, in its place, the
citation ``691.15(b)(1)(iii)(C)''.
0
24. Section 691.76 is amended by revising paragraph (b) to read as
follows:
Sec. 691.76 Frequency of payment.
* * * * *
(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's enrollment status must be
determined according to work already completed.
* * * * *
0
25. Section 691.80 is amended by revising paragraph (b) to read as
follows:
Sec. 691.80 Redetermination of eligibility for a grant award.
* * * * *
(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 must recalculate the student's award for the new
payment period taking into account any changes in the cost of
attendance.
(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 student's award for the
payment period is recalculated. 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)(A) If a student's projected enrollment status changes during a
payment period before the student begins attendance in all of his or
her classes for that payment period, the institution must recalculate
the student's enrollment status to reflect only those classes for which
the student actually began attendance.
(B) If a student's projected enrollment status changes to less-
than-half-time during a payment period before the student begins
attendance in all of his or her classes for that payment period, the
institution must determine that the student is ineligible for a grant
for that payment period.
* * * * *
[FR Doc. E9-10094 Filed 4-30-09; 8:45 am]
BILLING CODE 4000-01-P
Posted 05/01/09 to www.NASFAA.org. Please submit Web site questions or comments to Web@NASFAA.org
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