§ 169.2 Definitions.

As used in this part:

(a) "Act" means Title III of the Higher Education Act of 1965, as amended.

(b) "Academic Year" means a period of time usually eight or nine months in which a full-time student would normally be expected to complete the equivalent of two semesters, two trimesters, three quarters, twenty-eight semester hours, forty-two quarter hours or 900 clock hours of instruction.

(20 U.S.C. 1051-1054, 1056)

(c) "Developing Institution" is an institution of higher education that is so classified under Subpart B of this part.

(20 U.S.C. 1052)

(d) "Institution of Higher Education" means an educational institution as defined in section 1201(a) of the Higher Education Act of 1965.

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

(e) "Junior or Community College" means an institution of higher education (1) which does not provide an educational program for which it awards a bachelor's degree (or an equivalent degree), (2) which admits as regular students only persons having a certificate of graduation from a school providing secondary education (or the recognized equivalent of such a certificate); and (3) which does (i) provide an educational program of not less than two years which is acceptable for full credit toward such a bachelor's or equivalent degree, or (ii) offers a two year program in engineering, mathematics, or the physical or biological sciences, which program is designed to prepare a student to work as a technician and at the semiprofessional level in engineering, scientific or other technological fields, which fields require the understanding and application of basic engineering, scientific, or mathematical principles of knowledge.

(f) "State" means the several States of the Union, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, and the Virgin Islands.

(b) Admits as regular students only persons having a certificate of graduation from a school providing secondary education or the recognized equivalent of such a certificate;

(c) Is accredited by a nationally recognized accrediting agency or association determined by the Commissioner to be reliable authority as to the quality of training offered or is, according to such an agency or association, making reasonable progress toward accreditation;

(d) Meets the requirements of paragraphs (a) and (c) of this section during the five academic years preceding the academic year for which it seeks assistance under this part, except that:

(1) The Commissioner may waive this five year requirement for those institutions located on or near an Indian reservation or a substantial number of Indians if he determines that such a waiver will increase the opportunity for Indians to obtain the benefits of higher education; and

(2) The Commissioner may waive three years of this five year requirement for an institution if he determines that such a waiver will substantially increase higher education for Spanish-speaking people. For purposes of this subparagraph, Spanish-speaking people are those persons of hispanic heritage including persons of Mexi

can, Puerto Rican, Cuban, Central American, South American, or other Spanish-speaking origin.

(e) Is, on the basis of the quantitative and qualitative factors set forth in §§ 169.12 and 169.13 respectively, (1) making reasonable effort to improve the quality of its teaching and administrative staffs and of its student services; and (2) for financial or other reasons, struggling for survival and isolated from the main currents of academic life.

(20 U.S.C. 1052)

§ 169.12 Quantitative factors for identifying developing institutions.

The following eight factors have been identified as the most important quantitative measures in assessing whether an institution meets the conditions set forth in § 169.11(e). They have been quantified by institutional type and control. These factors define the range of developing institutions. Every institution which meets all the quantitative standards will be included for further evaluation under the qualitative criteria. Institutions that fall outside the range of one or more of the criteria will be given an opportunity to demonstrate that the shortfall or excess as the case may be does not materially alter the character of the institution.

§ 169.13 Qualitative factors for identifying

developing institutions.

Those institutions which satisfy the requirements set out in § 169.12 will be further assessed on the following qualitative factors which will be used to assess whether the institution meets the conditions set forth in § 169.11(e). These factors will be evaluated over a three year period. Such period will include the academic year in which the institution is seeking recognition as a developing institution and the preceding two academic years.

(a)(1) Enrollment. Consideration will be given to the institution's full-time equivalent enrollment, the number of its graduates continuing their education either at a four year institution in the case of a junior or community college, or at a graduate or professional school, the class standing of entering freshmen in their high school graduating class, the percentage of freshmen completing their first year and the percentage of freshmen graduating from the institution. If such enrollment data are in a decline over the three year period the institution must demonstrate that such a decline is not inconsistent with continued institutional viability.

(2) In evaluating an institution pursuant to the criteria discussed in paragraph (a)(1) of this section, the Commissioner will take into consideration whether the institution has adopted an open enrollment admissions policy. As used in this section an open enrollment admissions policy of an institution of higher education means that the institution will admit as regular students all students who apply to that school for admission who have a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate.

(b) Institution personnel. An institution will be evaluated with regard to the quality of its personnel in the areas of institutional administration including financial operations, student services, teaching and research. Factors considered in making such an evaluation will include the percentage of professional personnel with advanced degrees and the salary scale of the institution.

(c) Institution vitality. An institution will be evaluated in terms of its vitality and viability. Factors considered in such a determination will include its fund raising capability,

whether the institution has a planning capability and whether the institution has devised an institutional development plan.

(20 U.S.C. 1052)

§ 169.14 Effect of classification.

(a) Those institutions which meet the quantitative and qualitative criteria set out in §§ 169.12 and 169.13 will be classified as "developing institutions" for the purpose of this part and for the purpose of section 305 of the Act. Applications for grants under this part will be further evaluated on their merits.

(b) (1) section 305 of the Act provides that in the case of any application by a developing institution for assistance under any of the programs specified in paragraph (b)(2) of this section, the Commissioner is authorized, if such application is otherwise approvable, to waive any requirement for a non-federal share of the cost of the program or project, or, to the extent not inconsistent with other law, to give, or require to be given, priority consideration of the application in relation to applications from institutions which are not developing institutions.

(2) The programs referred to in section 305 of the Act include the College Library Assistance and Library Training and Research Programs (Title II of the Higher Education Act of 1965 (HEA); 45 CFR Parts 131, 132); the Talent Search, Upward Bound, Special Services for Disadvantaged Students and Educational Opportunity Center Programs (Title IV-A-4, HEA; 45 CFR Parts 154, 155); the College WorkStudy Program (Title IV-C, HEA; 45 CFR Part 175); the Cooperative Education Program (Title IV-D, HEA); the National Direct Student Loan Program (Title IV-E, HEA; 45 CFR 144); Financial Assistance for Improvement of Undergraduate Institutions (Title VI, HEA; 45 CFR Part 171); and the Construction of Academic Facilities Program (Title VII, HEA; 45 CFR Part 170).

(3) The Commissioner will not waive under this paragraph the non-federal share requirement for any program for application which, if approved, would require the expenditure of more than 10 percent of the appropriations

for the program for any fiscal year period.

(c) A reevaluation of an institution's classification as a developing institution will be made periodically. (20 U.S.C. 1052, 1055)

§ 169.15 Application requirements.

(a) An institution wishing to be designated as a developing institution shall file an application which shall be in such form and contain such information as the Commissioner may from time to time prescribe and shall include:

(1) The signature of the institutional head;

(2) Data describing institutional participation in Federal programs, both education and other, by program title. The institution shall also state the amount of funds it received under each program;

(3) Institutional data described in §§ 169.12 and 169.13; and

(4) An institutional eligibility narrative in which the applicant shall state the reasons it considers itself qualified to be designated as a "developing institution."

(20 U.S.C. 1052)

(b) An institution located on or near an Indian reservation or a substantial number of Indians which seeks a waiver of the five year requirement of § 169.11(d) shall demonstrate how such a waiver will increase the opportunity of Indians to obtain the benefits of higher education.

(c) An institution which seeks a waiver of three years of the five year requirement of § 169.11(d) shall demonstrate how such a waiver will substantially increase higher education for Spanish-speaking people. (20 U.S.C. 1052)

Subpart C-Basic Institutional
Development Program

§ 169.21 Program objectives.

The purpose of grants made pursuant to this subpart is to assist in raising the academic quality of developing institutions that show both a desire for and a promise of institutional improvement in order that they may more fully participate in the higher

education community. The Basic Institutional Development program attempts to narrow the gap between small, weak colleges and stronger institutions. The principal means for doing so is through cooperative arrangements in which developing institutions may draw upon the talent and experience of assisting institutions of higher education, including other developing institutions, as well as upon business and industry in the area of faculty and curriculum development, administrative improvement and student services. National Teaching Fellows may be requested to release faculty of developing institutions to further their education, and Professors Emeriti may be requested to make special contributions to institutional needs.

(20 U.S.C. 1054)

§ 169.22 Cooperative arrangements.

(a)(1) The Commissioner may award grants to developing institutions to pay part of the costs of planning, developing and carrying out cooperative arrangements between developing institutions, between developing institutions and other institutions of higher education, and between a developing institution and a business entity, an agency or an organization, which show promise as effective measures for strengthening the academic program, administrative capacity, and student services of the developing institutions.

(2) In each cooperative arrangement receiving assistance under this subpart the developing institution shall be the legal recipient of the grant award and shall be legally responsible for administering the program assisted under such grant.

(b) The types of cooperative arrangements that will be funded include bilateral and consortium arrangements.

(1) Bilateral arrangement. A bilateral arrangement is an arrangement between the applicant developing institution and another institution of higher education or an agency, organization, or business entity under which the latter will provide assistance and resources to the developing institution to carry out activities described in § 169.23.

(2) Consortium arrangement. A con

(a) The type of activities that may be funded under cooperative arrangements include such activities as:

(1) The exchange of faculty and students with other institutions of higher education;

(2) Arrangements for bringing visiting scholars to developing institutions; (3) Faculty and administrative staff improvement programs such as internships (including internships for administrative staff), attendance at short term institutes, advanced study including stipends of up to $4,000, and participation in research projects;

(4) The introduction of new curricula and curricular materials;

(5) The development and operation of cooperative education programs involving alternate periods of academic study and business or public employment;

(6) The joint use of facilities such as libraries and laboratories, as well as the purchase of necessary books, materials, and equipment;

(7) The obtaining of specialized personnel for developing institutions in such areas as media, reading, computers, institutional research and management; and

(8) Faculty and salary supplements for a faculty member who is engaged in a special project or activity for the benefit of the developing institution. Such request must be carefully documented and such salary supplements will generally be limited to three (3) years.

(20 U.S.C. 1054)