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percent of total income for state and local taxes, and an amount required to maintain the family (exclusive of the student's maintenance during the academic year) at the Bureau of Labor Statistics consumption cost estimates at a low standard of living;

(b) To the remainder obtained in subparagraph (a) will be added 12 percent of the net market or cash value of the parents' assets remaining after deduction of related debt and a standard asset reserve of $10,000; and

(c) The following rate schedule of expected contributions will then be applied to the sum obtained in subparagraph (b):

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(iii) In developing the sample cases for the purposes of this paragraph, the Commissioner shall select only cases in which the age of the main wage earner is 45 years and in which the elements set forth in subparagraph (2) (ii) of this paragraph are generally present. Accordingly, cases will not be selected which involve medical and dental expenses, casualty and theft losses, housekeeping allowances, farm or business assets, more than one family member attending postsecondary institutions, Social Security or Veteran's benefits or any unusual family circumstance.

(iv) In comparing the output of a system submitted for approval under these regulations with the figures for the standard sample cases, an expected parental contribution of less than zero shall be treated as zero.

(v) The figures for the set of sample cases used for purposes of this paragraph shall be revised annually for inflation by adjusting the deductions for family maintenance, the $10,000 standard deduction from assets and the rates of con

tribution from income and assets as necessary in such a manner that the revised standard expected contributions, expressed in constant dollars, remain constant for families with equal income and asset positions measured in constant dollars.

(c) Independent students. (1) The Commissioner has approved the following systems for the purpose of § 144.7(b), with respect to independent students:

(i) The method of calculating an expected family contribution used in the Basic Educational Opportunity Grants Program (45 CFR Part 190);

(ii) The system of need analysis published by the American College Testing Program;

(iii) The system of need analysis published by the College Scholarship Service;

(iv) The system of need analysis published by the Graduate and Professional Student Financial Aid Service; and

(v) The system of need analysis published by Financial Analysis Service, Inc., a division of Donley, Richardson & Associates.

(2) The Commissioner will approve any other need analysis system for the purpose of § 144.7(b), for use with respect to independent students, which is submitted in accordance with the procedures set forth in paragraph (d) of this section and which meets the following criteria:

(i) The system must produce, as its standard output, expected family contribution figures for independent students which: (a) Increase in reasonably smooth increments as the family financial strength, measured in real terms, increases; and (b) are equal for families of equal measured financial strength; and

(ii) The system must produce expected family contribution figures which are comparable to those produced by one of the systems specified in paragraph (c) (1) of this section.

(d) Application procedures for system approval. Any person or institution seeking to have a need analysis system approved by the Commissioner pursuant to paragraph (b) (2) of this section shall submit such system to the Commissioner prior to June 30 of each year. Such submission shall consist of sufficient information to enable the Commissioner to determine that the system meets the cri

teria set forth in that subparagraph, including the expected family contribution figures produced by the system for the sample cases developed and made available by the Commissioner. Any person or institution seeking to have a need analysis system approved by the Commissioner pursuant to paragraph (c) (2) of this section shall, prior to June 30 of any year, submit to the Commissioner sufficient information to enable him to determine that the system meets the criteria set forth in that subparagraph. On or before September 1 of each year, the Commissioner will publish in the FEDERAL REGISTER a list of all need analysis systems or methods of calculation which have been approved for use in the succeeding academic year.

(e) Duration of approval. Need analysis systems approved pursuant to paragraphs (b) (1) and (c) (1) of this section are approved without a specific expiration date. A need analysis system approved pursuant to paragraph (b) (2) of this section, and included on the list published by the Commissioner on or before September 1, of one year, may be used by an institution (1) in preparing its application for funds under this part which is to be submitted on or before the published closing date next following that September 1; and (2) in determining the eligibility of students for loans under this part, and in calculating the amount of such loans, to be used by the students during any academic year commencing not earlier than 9 months and not later than 22 months following that September 1. A need analysis system approved pursuant to paragraph (c) (2) of this section shall be approved for an indefinite period of time, but the Commissioner may request periodic confirmation that the system remains in compliance with the criteria set forth in that paragraph.

(f) Adjustments. The institution may, in an individual case, further adjust the expected family contribution calculated according to one of the need analysis systems approved pursuant to this section if the student financial aid officer of the institution has reason to believe that such expected family contribution does not realistically reflect the ability of the student and his parents to contribute towards the student's cost of education. Such adjustments shall be documented

in writing, with an accompanying explanation, and made a part of the institution's records with respect to this part.

(20 U.S.C. 1087dd) [40 FR 49270, Oct. 21, 1975]

§ 144.15

Coordination of student finan

cial aid programs and overaward. (a) Coordinating official. The institution shall appoint an official who shall have the responsibility of coordinating the program covered by this part with the institution's other Federal and nonFederal programs of student financial aid.

(b) Total award. The institution shall not award a loan under this part to a student in an amount which, when combined with all of the resources made available to the student from Federal and non-Federal sources, would exceed the difference between the student's cost of education and his expected family contribution, as determined in accordance with one of the need analysis systems or methods of calculations approved by the Commissioner pursuant to § 144.14; provided, however, That in no event may the total amount of aid received from all Federal and non-Federal sources exceed the student's cost of education.

(c) Resources. For purposes of paragraph (b) of this section, the term "resources made available to the student from Federal and non-Federal sources" includes any waiver of tuition and fees, any scholarship or grantin-aid including athletic scholarships, any fellowship or assistantship, any loan made under the Guaranteed Student Loan Program (Title IV-B of the Higher Education Act) except in cases in which paragraph (d) of this section applies, any long-term loan made by the institution other than under the Guaranteed Student Loan Program, and any expected net earnings from employment during periods for which the student receives a loan under this part. For purposes of this section, "net earnings" means gross earnings minus required withholdings and any costs incidental to obtaining such earnings.

(d) Treatment of guaranteed loans. (1) Except as provided in paragraph (d) (2) of this section, loans made under the Guaranteed Student Loan

Program shall not be considered to be a student resource and may be used to satisfy the expected family contribution of the borrower calculated in accordance with § 144.14. If the amount of such a loan exceeds the borrower's expected family contribution, only such excess shall be considered a student resource.

(2) Loans for which interest benefits are payable under section 428 of Title IV-B of the Higher Education Act (20 U.S.C. 1078) shall be considered a student resource and may not be used to satisfy a student's expected family contribution in cases in which the borrower has an adjusted family income of more than $15,000, as determined in accordance with applicable Guaranteed Student Loan Program Regulations (45 CFR Part 177), or in cases in which the amount of the loan would cause the total amount of the borrower's loans insured by the Commissioner, or by a State or nonprofit private institution having an agreement with the Commissioner under section 428 (b) of the Higher Education Act (20 U.S.C. 1078(b)), to exceed $2,000 for that academic year.

(e) Administrative responsibility. The institution's responsibility under paragraph (b) of this section shall extend only to those resources which the institution itself makes available to the student, or about which it knows or has reason to know, or can reasonably anticipate at the time that the proceeds of the loan made under this part are disbursed to the student. The amount of net earnings from any employment provided by the institution for any academic period covered by the loan under this part shall be deemed to have been known by the institution at the time of the disbursement of such loan. However, an institution will not be deemed to have violated the requirements of this section if the sum of all the resources made available to the student, including a loan under this part, exceeded that student's need by not more than $100.

(20 U.S.C. 1087dd) [40 FR 22136, May 21, 1975]

APPENDIX A

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New Mexico_-----------
New York.-----
North Carolina----
North Dakota..
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island_.
South Carolina..
South Dakota....
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia.
Wisconsin
Wyoming
Canal Zone_
Guam

-

Puerto Rico...
Virgin Islands....

Total

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(Catalog of Federal Domestic Assistance Program No. 13.471, National Defense Student Loans.)

[38 FR 15959, June 19, 1973]

PART

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GRADUATE FELLOWSHIP PROGRAM

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Sec.

145.5 Records substantiating payments. 145.6 Award of fellowships to individuals. 145.7 Payments of stipends.

145.8 Reports by institutions of higher education.

145.9 Fellowships awarded after September 22, 1961.

AUTHORITY: The provisions of this Part 145 issued under sections 401-405, 1001, 72 Stat. 1590-1591, 1602; 20 U.S.C. 461-465, 581.

SOURCE: The provisions of this Part 145 appear at 25 F.R. 9289, Sept. 29, 1960, unless otherwise noted.

§ 145.1

Definitions.

As used in this part:

(a) "Act" means the National Defense Education Act of 1958, Public Law 85-864, as amended, 72 Stat. 1580, 20 U.S.C. 401-589.

(b) "Title IV" means title IV of such Act.

(c) "Institution of higher education” or "institution" means an educational institution in any State which meets the requirements set forth in section 103(b) of the Act. The term "educational institution" limits the scope of this definition to establishments at which teaching is conducted and which have an identity of their own. The separate identity of such establishments is generally reflected by their being incorporated or chartered for such purposes in their own right, or by their receiving a separate listing in part III of the Office of Education "Education Directory."

(d)-(e) [Reserved]

(f) "State" means a State, Puerto Rico, the District of Columbia, the Canal Zone, Guam, or the Virgin Islands.

(g) "Fellowship" means an award by the Commissioner under Title IV. A "Fellowship holder" or "Fellow" means a person designated to receive the award, which entitles him to receive the stipend. (h) "Approved program" means program of graduate study approved as provided in § 145.3.

(1) [Reserved]

8

(j) "Stipend" means the payments made to a Fellow in accordance with section 404 (a) of the Act (1) for each academic year of his study in an approved program and (2) on account of each of his dependents.

(k) "Academic year" consists of not less than two semesters or three quarters, beginning in the fall of the year,

and falling within a single twelve month period.

[25 FR 9289, Sept. 29, 1960, as amended at 38 FR 30660, Nov. 6, 1973]

§ 145.2 Summary of program.

(a) Purpose. The National Defense Graduate Fellowship Program has the objectives of increasing the facilities available for the graduate training of college or university level teachers, of promoting a wider geographical distribution of such facilities throughout the United States, and of assisting persons interested in teaching in institutions of higher education to obtain the Ph. D. or similar degree.

(b) Fellowship awards. The Commissioner is authorized to award up to one thousand Fellowships during the fiscal year ending June 30, 1959, and fifteen hundred Fellowships during each of the three succeeding fiscal years. A Fellowship will usually be awarded for three academic years, but in any case will not be for more than three academic years.

(c) Payments to fellows and institutions of higher education. Stipends to Fellows will be paid in accordance with § 145.7. In addition, to the extent permitted by § 145.4, the Commissioner shall make payments to institutions to cover that portion of the cost of an approved graduate program which is reasonably attributable to each Fellow.

(d) Approval of programs and allotment of fellowships. The Commissioner will approve graduate programs at institutions in accordance with § 145.3, and will determine the number of fellowships to be allotted to each such program. Public announcement will be made listing the approved programs and the institutions at which they are to be offered. An individual desiring a Fellowship should apply for acceptance as described in § 145.6 at the institution of his choice from among those listed.

§ 145.3 Approval of graduate programs.

(a) Minimum requirements for approval of programs. The programs to be approved will be selected from those:

(1) For the completion of which a Ph. D. or similar degree is awarded;

(2) Which constitute a new or expanded program of graduate study; (3) Which substantially further the objective of increasing the facilities

available in the Nation for the graduate training of college or university level teachers:

(4) Which promote a wider geographical distribution of facilities for the graduate training of college or university level teachers throughout the Nation; and

(5) In which a preference in the acceptance of persons for study is given to persons interested in teaching in institutions of higher education.

(b) Applications. Approval of graduate programs shall be on the basis of applications submitted by institutions of higher education in accordance with procedures established by the Commissioner. Applications shall contain information as to the proposed increase in facilities and/or faculty for the establishment of the new program or expansion of an existing program and shall indicate the total increase in enrollment (or total enrollment in the case of a new program) which the increase in facilities and/or faculty will enable the program to accommodate. The proposed development of the program should normally be such as to make possible the admission of sufficient first-year students each year to achieve the total anticipated increase in enrollment (or total anticipated enrollment in the case of a new program) within three years.

(c) Organization of programs. Programs may be organized by an institution in any manner appropriate to the field of study of the program, including but not restricted to: departmental, e.g., Political Science; a special field within a department, e.g. Political Theory; interdepartmental, e.g. Psychology and Politics; or intercollege, e.g. Law and Politics.

(d) Joint institutional sponsorship. Two or more institutions may jointly submit a program for approval. The application must be signed by an authorized representative of each institution, and it must be agreed that credits earned at each of the institutions are fully transferable to the other.

(e) Dates for applying. Each year a date will be announced for the submission of applications by institutions for the approval of a new or expanded program to accommodate those who will be awarded Fellowships in the ensuing period. Institutions of higher education may secure forms for application from

Division of Higher Education, Office of
Education, Department of Health, Edu-
cation, and Welfare, Washington 25,
D.C.

(f) Criteria for the selection of approved programs. The following criteria will be considered in determining which of the programs meeting the foregoing requirements are to be approved:

(1) The prospective ability of the applying institution, in terms of faculty, libraries, and equipment, competently to offer the program;

(2) Current or prospective national or regional shortage of college or university teachers in the proposed field;

(3) Current or prospective national or regional inadequacies in the offering of proposed subjects;

(4) Adequate ratio, at the applying institution, between the number of graduate faculty and the proposed number of graduate students;

(5) The amount and extent of the applying institution's previous planning and development in the field proposed in the program;

(6) Likelihood that the applying institution will be able soundly to support the proposed program on a long-term basis;

(7) Likelihood that the proposed program will produce teachers for institutions of higher education.

(g) Notification of Commissioner's action. The Commissioner will notify each institution of higher education which has applied for approval of a graduate program whether such approval has been given, and if so, the number of Fellowships which the Commissioner is prepared to allot for such program.

(h) Effect of approval. Approval of a program is effective during any period in which a Fellowship holder is enrolled in the program, unless approval is withdrawn, as provided in paragraph (1) of this section. Continued approval of a program does not necessarily mean, however, that new Fellowships will be awarded to students enrolling in the program in any given year.

(1) Number of fellowships to be allotted. In determining the number of Fellowships to be allotted to an Approved Program the Commissioner will take into account the total increase in enrollment (or total enrollment in the case of a new program) anticipated at the end of the three year period of development of the Program. For the first year the Com

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