Code of Federal Regulations: Containing a Codification of Documents of ...

(b) At least 900 clock hours of training for each program at an institution using clock hours.

Act: Title IV-C of the Higher Education Act of 1965 (HEA).

*Award year: The period of time between July 1 of one year and June 30 of the following year.

*Campus Based Programs: (a) The National Direct Student Loan Program (NDSL-34 CFR Part 674);

(b) The College Work-Study Program (CWS-34 CFR Part 675); and

*Clock Hour: The equivalent of— (a) A 50 to 60 minute class, lecture, or recitation; or

(b) A 50 to 60 minute faculty supervised laboratory, shop training, or internship.

Cooperative Education Program: A program authorized by Title VIII of the Higher Education Act.

*Dependent student: A student who does not qualify as an independent student (see independent student).

Eligible program: A program of education or training that

*(a) Admits as regular students only persons who

(1) Have a high school diploma;

(2) Have a General Education Certificate (GED) or a State certificate received after passing a State authorized examination which the State recognizes as the equivalent of a high school diploma; or

(3) Are beyond the age of compulsory school attendance in the State in which the institution is located, and have the ability to benefit from the education or training offered.

(b)(1) Leads to a bachelor, associate, undergraduate, graduate or professional degree;

(2) Is at least a 2 year program that is acceptable for full credit toward a bachelor degree;

(3) Is at least a 1 year program leading to a certificate or degree that prepares a student for gainful employment in a recognized occupation; or

(4) Is, for a proprietary institution or a postsecondary vocational institution, at least a six-month program leading to a certificate or degree

which prepares students for gainful employment in a recognized occupation.

*Expected family contribution: The amount a student and his or her spouse and family are expected to pay toward his or her cost of attendance.

*Financial need: The difference between a student's cost of attendance and his or her expected family contribution.

Graduate or professional student: A student enrolled in an academic program of study above the baccalaureate level at an institution of higher education, including—

(a) A program leading to a first professional degree if the institution requires at least 3 years of study at the college level for entrance into the program; and

(b) The fifth and later years of any program requiring more than 4 years of study at the college level.

*Guaranteed Student Loan Program (GSL): The student loan program authorized by Title IV-B of the HEA.

(20 U.S.C. 1071 et seq.)

Half-time graduate or professional student: An enrolled graduate or professional student who is carrying a half-time academic work load as determined by the institution according to its own standards and practices.

*Half-time undergraduate student: An enrolled undergraduate student who is carrying a half-time academic work load as determined by the institution according to its own standards and practices. However, the institution's half-time standards must equal or exceed the equivalent of the following minimum requirements:

(a) 6 semester hours or quarter hours per academic term in an institution using standard semester, trimester, or quarter systems.

(b) 12 semester hours or 18 quarter hours per academic year for an institution using credit hours to measure progress, but not using a standard semester, trimester, or quarter system, or the prorated equivalent for a program of less than 1 year.

(d) 12 clock hours of preparation per week for a student enrolled in a program of study by correspondence.

Independent student (effective through June 30, 1981):

(a) A student who for 1979 and 1980

(1) Has not been claimed and will not be claimed as an exemption for Federal income tax purposes by his or her parent(s);

(2) Has not received and will not receive financial assistance of more than $750 in each year from his or her parent(s); and

(3) Has not lived and will not live for more than six weeks in each year in the home of his or her parent(s).

(b) If a student's mother and father are divorced or separated, only one parent will be considered to be the parent of the student for purposes of applying the criteria in paragraph (a) of this section.

To determine that parent

(1) Choose the parent with whom the student resided for the greater portion of the 12 month period preceding the date of application to have an expected family contribution determined under an approved need analysis system.

(2) If the preceding criterion does not apply, choose the parent who provided the greater portion of the student's support for the 12 month period preceding the date of application to have an expected family contribution determined under an approved need analysis system.

(3) If neither of the preceding criteria apply, choose the parent who provided the greater support for the period commencing January 1 of the calendar year which immediately precedes the first calendar year of the award period and ending 12 months prior to the date of application to have an expected family contribution determined under an approved need analysis system.

stitution shall not consider either parent.

*Independent student (effective July 1, 1981 through June 30, 1982):

(a) A student who for 1980 and 1981

(1) Has not been claimed and will not be claimed as an exemption for Federal income tax purposes by his or her parent(s);

(2) Has not received and will not receive financial assistance or more than $1,000 in each year from his or her parent(s); and

(3) Has not lived and will not live for more than six weeks in each year in the home of his or her parent(s).

(c) If either of the parents have died, the institution shall consider only the surviving parent as the parent of the student. If both parents have died, the institution shall not consider either parent.

*Legal guardian: An individual appointed by a court to be a legal guardian of a person and who is specifically

required by the court to use his or her financial resources to support that person.

National Direct Student Loan Program (NDSL): The student loan program authorized by Title IV-E of the HEA

(20 U.S.C. 1087aa-1087ii)

*National of the United States: A citizen of the United States or a noncitizen who owes permanent allegiance to the United States.

(8 U.S.C. 1101(a)(22))

*Nonprofit institution: An institution owned and operated by one or more nonprofit corporations or associations where no part of the net earnings of the institution benefits any private shareholder or individual.

(20 U.S.C. 1141(c))

*Parent: Parent means the student's mother, father, or legal guardian. An adoptive parent is considered to be the student's mother or father.

*Parent Loans for Undergraduate Students Program (PLUS): The parent loan program authorized by Title IV-B of the HEA.

*Payment period: A semester, trimester, or quarter. For an institution not using those academic periods, it is the period between the beginning and the midpoint or between the midpoint and the end of an academic year. A payment period is not the payroll period discussed in § 675.16.

*Pell Grant Program: The grant program, formerly known as the Basic Educational Opportunity Grant Program, authorized by Title IV A-1 of the HEA.

*Regular student: A person who is enrolled or accepted for enrollment, in an eligible program at an institution of higher education for the purpose of obtaining a degree or certificate.

*Secretary: The Secretary of the Department of Education, or an official or employee of the Department acting for the Secretary under a delegation of authority.

*State: The States of the Union, American Samoa, the Commonwealth of Puerto Rico, the District of Columbia, Guam, the Trust Territory of the

Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.

(20 U.S.C. 1141(b))

*State Student Incentive Grant Program (SSIG): The program authorized by Title IV-A-3 of the HEA.

(20 U.S.C. 1070c et seq.)

Supplemental Educational Opportunity Grant Program (SEOG): The grant program authorized by Title IVA-2 of the HEA.

(20 U.S.C. 1070b et. seq.)

(42 U.S.C. 2751-2756b, unless otherwise noted)

§ 675.3 Allotment and reallotment.

(a) Initial allotment. The Secretary allots one percent of the CWS appropriation according to section 442(a) of the Act. The Secretary allots an additional amount according to section 442(f) of the Act.

(b) Initial allotment to States. (1) The Secretary allots 90% of the amount remaining according to the Act, 442(b). (If necessary the Secretary allots additional amounts to each State to make that State's allotment equal to its allotment for fiscal year 1972. The 1972 allotments are shown in Appendix A.)

(2) The Secretary allots the remaining amount so that each institution in each State receives the CWS funds computed under § 675.6 or § 675.7.

(c) Reallotment. (1) The Secretary reallots the amount of a State's allotment that exceeds the approved requests of institutions in that State.

(2) The Secretary reallots those funds among the remaining States according to institutional need for CWS funds as computed under § 675.6 or § 675.7.

(42 U.S.C. 2752)

§ 675.4 Allocation, reallocation, and payment to institutions.

(a) Definition. As used in this section and in section 675.6, "current year" means the 12-month period ending on the June 30 immediately following the closing date for filing a CWS application.

(b) Allocation. The Secretary distributes CWS funds according to §§ 675.6 and 675.7.

(c) Reallocation. (1)(i) If an institution anticipates not using all its allocated funds by the end of an award year and if it does not wish to carry those funds forward into the next award year, it must specify the anticipated unused amount to the Secretary, who reduces the institution's allocation accordingly.

(ii) Other institutions may apply for those funds on the form and at the time specified by the Secretary.

(iii) The Secretary distributes those funds to applicant institutions in accordance with paragraph (c)(2) of this section.

(2)(i) If the funds that become available under paragraph (c)(1) of this section come from the State's initial allotment under § 675.3(b)(1), the Secretary reallocates those funds equitably to other institutions in that State. The Secretary reallots those funds that are not needed to maintain the State's initial allotment, and any funds that do not come from that initial allotment, in accordance with paragraphs (c)(2) (ii), (iii), (iv), and (v) of this section.

(ii) The Secretary reallocates fifty (50) percent of any remaining funds to eligible applicant institutions to initiate, improve, or expand cooperative education programs conducted in accordance with title VIII of the HEA.

The Secretary distributes these funds to eligible applicant institutions according to the following formula: An eligible

applicant institution's share=The number of students assisted under the cooperative education program authorized by title VIII for the fiscal year enrolled in the eligible institution which applied for reallocated funds./The number of such students for such year enrolled in all eligible institutions which applied for reallocated funds. Funds available for distribution.

(iii) The Secretary reallocates the remaining fifty (50) percent to institutions whose students have suffered financial hardships as a result of natural disasters within the preceding 12 months.

(iv) If any funds remain, the Secretary then increases awards to institu

tions whose awards are less than their national fair share determined under § 675.6. The Secretary calculates each applicant's increase as follows:

Institution's remaining shortfall/remaining shortfall of all applicants for reallocation × remaining amount available for reallocation

(An institution's remaining shortfall is the difference between its national fair share (see § 675.6(g)(4)) and its award calculated in § 675.6 and this section through paragraph (c)(2)(iii).)

(v) If any funds still remain, the Secretary reallocates the funds in a manner that best carries out the purposes of this part.

(d) Payments to institutions. The Secretary allocates funds for a specific period of time. The Secretary pays funds to an institution in advance or by reimbursement. The Secretary bases the amount to be paid on periodic fiscal reports.

(42 U.S.C. 2752 and 2756)

§ 675.5 Application.

(a) To participate in the CWS program, an institution must file an application with the Secretary before an annually established closing date.

(b) The application must be on a form approved by the Secretary and contain information needed to determine the institution's allocation under § 675.6 and 675.7.

(c) The application must contain the information needed to determine whether the institution is complying with the maintenance of effort requirements under § 675.20.

(42 U.S.C. 2756)

§ 675.6 Funding procedure.

(a) General. (1) Each institution applying for CWS funds receives an amount computed in the following three stages:

(i) A "conditional guarantee";

(ii) A State increase based on its "fair share" of the State apportionment; and

(iii) A national increase based on its "fair share" of the national appropriation.

(2) Definitions-As used in this section

(i) "Base year" means the 12-month period ending on the June 30 preceding the closing date for filing a CWS application;

(ii) “Current year" is defined in § 675.4.

(b) Conditional guarantee. The Secretary computes a conditional guarantee in the following way:

(1) An institution that participated in the CWS program in the base year receives a conditional guarantee equal to its 1979-80 award year expenditures unless it suffers a substantial decline in enrollment.

(2) An institution applying to participate in the CWS program for the first time receives a conditional guarantee equal to the greater of—

(i) $5,000; or

(ii) 90 percent of the average CWS base year expenditure per student in eligible institutions offering comparable programs of instruction, multiplied by the applicant institution's base year enrollment.

(3) An institution applying to participate in the CWS program for the second time receives a conditional guarantee equal to the greatest of—

(i) $5,000;

(iii) 90 percent of its current year allocation.

(c) Self-help need of an institution. (1) The Secretary allocates additional funds to an institution under paragraph (f) (State increase) and paragraph (g) (National increase) based in part on the institution's self-help need. Self-help need is the need for funds from work and loan sources. The institution's self-help need is the sum of the self-help need of its eligible graduate students and the self-help need of its eligible undergraduate students.

(2) The Secretary calculates the selfhelp need of an institution's eligible graduate students in accordance with paragraph (d) of this section and the self-help need of its eligible under

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