§ 695.9

is subject to Part 74 of this title. The matching must be from non-federal sources and may be cash or in kind. The State shall maintain supporting records to indicate the amount and sources of such matching.

(20 U.S.C. 1088b-3)

[45 FR 86300, Dec. 30, 1980]

§ 695.9 Use of funds.

Funds received by a State under this part plus the matching State funds must be used to pay the costs of performing activities to meet the provisions of §§ 695.4 and 695.5 to increase the proficiency of institutional and State financial aid administrators.

"Expected family contribution of a dependent student" means the sum of the amounts which reasonably may be expected from the student and the student's spouse to meet the student's cost of education and the amount which reasonably may be expected to be made available to him by his parents for this purpose.

"Expected family contribution of an independent or self-supporting student" means the amount which reasonably may be expected from the student and the student's spouse to meet the student's cost of education.

"Full-time student" means a student who is carrying a full-time academic workload other than by correspondence measured in terms of: (1) Course work or other required activities as determined by the institution in which the student is enrolled, or by the State whose agency is administering the program authorized by the Act, which amounts to the equivalent of a minimum of 12 semester hours or 12 quarter hours per academic term for institutions utilizing trimesters, semesters, or quarter hour systems, or which consists of a program requiring a minimum of 24 clock hours per week for those institutions that do not utilize such systems, and (2) the tuition and fees customarily charged for full-time study by the institution.

(20 U.S.C. 1088(c)(2))

"Half-time student" means a student who is carrying a half-time academic workload measured in terms of: (1) Course work or other required activities as determined by the institution in which the student is enrolled, or by the State whose agency is administering the program authorized by the Act, which amounts to a minimum of 6 semester hours or 6 quarter hours for institutions utilizing trimesters, semesters or quarters, or which consists of a program requiring a minimum of 12 clock hours per week for those institutions which do not utilize these systems, and (2) the tuition and fees customarily charged for half-time study by the institution.

(20 U.S.C. 1088(c)(2))

"Independent or self-supporting student" means an independent or self

supporting student as defined by each State.

"Initial award" means the student's first award made under this program. "Institution of higher education" means an educational institution in any State which:

(1) Admits as regular students only: (i) Persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate, or (ii) persons who are beyond the age of compulsory school attendance in the State in which the institution is located and who have the ability to benefit from the training offered by the institution, (2) is legally authorized within the State to provide a program of education beyond secondary education, (3) provides an educational program for which it awards a bachelor's degree or provides not less than a two-year program which is acceptable for full credit toward the degree, (4) is a public or other nonprofit institution, and (5) is accredited by a nationally recognized accrediting agency or association or, if not so accredited, (i) is an institution with respect to which the Secretary has determined that there is satisfactory assurance, considering the resources available to the institution, the period of time, if any, during which it has operated, the effort it is making to meet accreditation standards, and the purpose for which this determination is being made, that the institution will meet the accreditation standards of the agency or association within a reasonable time, or (ii) is an institution whose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited. The term also includes any school which provides not less than a one-year program of training to prepare students for gainful employment in a recognized occupation and which meets the provision of paragraphs (1), (2), (4), and (5) of this definition unless the school is a public institution in which case it may also be accredited by the State agency in that State which has been listed by the Secretary as a reliable authority as to the quality of public postsecondary vo

cational education in that State. For purposes of this part, a one-year program of training for institutions using a semester, trimester or quarter system means a program of at least 24 semester or trimester hours or 36 quarter hours. For institutions not using those academic terms, a one year program of training means a program of study in which a student will receive supervised training totalling at least 900 clock hours of instruction. The term also includes any proprietary institution of higher education, as defined in § 692.2, which has an agreement with the Secretary containing the terms and conditions which the Secretary determines to be necessary to insure that the availability of assistance to students at the school under this program has not resulted, and will not result, in an increase in the tuition, fees, or other charges to students.

(20 U.S.C. 1087-1(b), 1141(a))

"National of the United States" means (1) a citizen of the United States, or (2) a person who though not a citizen of the United States owes permanent allegiance to the United States.

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

"Parent" means the mother or father of the student, unless any other person, except the student's spouse, provides more than one-half of the student's support and claims or is eligible to claim the student as an exemption for Federal income tax purposes, in which case that person will be considered the parent.

"Proprietary institution of higher education" means a school (1) which provides not less than a six-month program of training to prepare students for gainful employment in a recognized occupation, (2) which admits as regular students only persons having a certificate of graduation from a school providing secondary education or the recognized equivalent of the certificate, (3) which is legally authorized by the State in which it is located to provide a program of education beyond secondary education, (4) which is accredited by a nationally recognized accrediting agency or asso

ciation approved by the Secretary for this purpose, (5) which is not a public or other nonprofit institution, and (6) which has been in existence for at least two years. For purposes of this part, a six-month program of training means for institutions using a semester, trimester or quarter system, a program of study of at least 16 semester or trimester hours, or 24 quarter hours. For institutions not using those systems a program of training means a program of study in which a student will receive supervised training totalling at least 600 clock hours of instruction.

(20 U.S.C. 1088(b)(3))

"Undergraduate student" means a student who (1) is in attendance at an institution of higher education and (2) has not earned a first baccalaureate or professional degree. A student who has not earned a first baccalaureate or professional degree and who is enrolled in a program of study at the postsecondary level which is designed to extend for more than four academic years will not be considered an undergraduate student beyond the fourth academic year unless that program leads to a first degree and is designed to extend for a period of five academic years.

(20 U.S.C. 1070c-1070c-4, unless otherwise noted)

[42 FR 46049, Sept. 14, 1977, as amended at 45 FR 22542, Apr. 3, 1980. Redesignated at 45 FR 77369, Nov. 21, 1980]

§ 692.3 Allotment and reallotment.

(a) Allotment of funds for initial awards. From the sums appropriated under section 415A(b)(1) of the Act for any fiscal year, the Secretary will allot to each State an amount which bears the same ratio to these sums as the number of students in attendance as at least half-time students at institutions of higher education in the State bears to the total number of students in attendance in all the States. (b)-(c) [Reserved]

(d) For the purposes of this section, the number of students in attendance as at least half-time students at institutions of higher education in a State and in all the States will be deter

mined by the Secretary for the most recent year for which satisfactory data are available.

(e) Allotment of funds for continuation awards. The Secretary will allot the sums appropriated for each fiscal year for continuation grants pursuant to section 415A(b)(2) of the Act among the States so that each State will receive the same percentage of its request for continuation grant funds for that fiscal year submitted in accordance with § 692.5(b).

(f) Notwithstanding paragraph (e) of this section, in any year when the Congress appropriates a single lump sum for both initial and continuation awards, funds will be allotted to the States on the basis of the formula used for initial awards set forth in paragraph (a) of this section and States will divide their allotments among initial and continuation awards according to their individual requirements, assuring that the needs of continuation students have priority.

(g) [Reserved]

(h) Whenever the sum appropriated for this program for any fiscal year exceeds $75,000,000, the Secretary will allot one-third of the amount above $75,000,000 to those States currently operating State Student Loan Insurance programs under section 428(b) of the Higher Education Act of 1965, either through an agency of the State or through a nonprofit private institution or organization designated by the State. The one-third bonus will be apportioned among qualified States so that the amount which each State receives bears the same ratio to onethird

of the excess funds over

$75,000,000 as the number of students in attendance on at least a half-time basis in institutions of higher education in that State bears to the total number of students in attendance on at least a half-time basis in institutions of higher education in all of the States qualifying for the bonus.

(20 U.S.C. 1070c-1)

[42 FR 46049, Sept. 14, 1977, as amended at 45 FR 22542, Apr. 3, 1980. Redesignated at 45 FR 77369, Nov. 21, 1980]

§ 692.4 State program requirements.

A State may receive funds allotted to it under § 692.3 for any fiscal year

only if funds will be expended under a State program which:

(a) Is administered by a single State agency;

(b) Awards grants only to students who meet the eligibility requirements of § 692.6;

(c) Provides for the selection of recipients of the grants on the basis of substantial financial need determined annually on the basis of criteria established by the State and approved by the Secretary;

(d) Provides that no payment may be made to a student under this program unless the student (1) is maintaining satisfactory progress in a course of study, according to the standards and practices of the institution at which the student is enrolled, (2) does not owe a refund on a grant previously received at that institution under the Pell Grant, Supplemental Educational Opportunity Grant, State Student Incentive Grant programs, or (3) is not in default on a loan made, insured, or guaranteed under the National Direct Student Loan or Guaranteed Student Loan programs for attendance at the institution at which the student is enrolled;

or

(e) Provides that grants will be in amounts not in excess of $1,500 per academic year for attendance on a full-time basis at an institution of higher education;

(f) Provides that all nonprofit institutions of higher education in the State are eligible to participate in the State program, effective with respect to any academic year beginning on or after October 1, 1978;

(g) Provides for the payment of the non-Federal share of grants awarded under this program from funds supplied by the State;

(h) Meets the maintenance of effort requirement of § 692.9;

(i) Provides for fiscal control and fund accounting procedures necessary to assure proper disbursement of and accounting for Federal funds paid to the State under this program; and

(j) Provides for the reporting which is reasonably necessary to enable the Secretary to perform his functions under this program.

(20 U.S.C. 1070c-2)