Thank you for your letter concerning the eligibility of North Carolina proprietary schools, and in particular cosmetology schools, to participate in the Basic Educational Opportunity Grant (BEOG) Program, and the eligibility of non-high school graduates to receive grants under the Basic Grant Program. The Basic Grant Program was enacted in 1972 by the Education Amendments of 1972, Public Law 92-318. Under the program, students enrolled and attending institutions of higher education as undergraduates on at least a half-time basis are eligible to receive Basic Grants (20 U.S.C. 1070a). That statute also permitted students attending proprietary institutions of higher education to receive Basic Grants (see Section 591(b)(1) of the Higher Education Act, 20 U.S.C. 1088(b)(1)). Section 491(b)(3) sets out the definition of a proprietary school. Under that provision a proprietary institution of higher education must (1) "provide not less than a six-month program of training to prepare students for gainful employment in a recognized occupation;" (2) "admit as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate;" (3) "be legally authorized within such State to provide a program of education beyond secondary school;" (4) "not be a public or other nonprofit institution;" (5) "be accredited by a nationally recognized accrediting agency or association approved by the Commissioner for this purpose;" and (6) "have been in existence for two years (20 U.S.C. 1088(b)(3)). (Emphasis added.)" Under a strictly literal interpretation of section 491(b)(3), the only accredited proprietary North Carolina schools which would qualify as eligible institutions for purposes of the BEOG Program would be those that restrict their admission of regular students to those persons having a certificate of high school graduation or its equivalent. However, the Office of Education does not believe that the Congress intended to hold a school ineligible-if-it-admitted-merely a de minimis number of non-high school graduates-as-regular students. Consequently, the Office of Education has taken the position that in such case of technical non-compliance, eligibility would not be terminated. To be more specific as to what constitutes a "de minimis" number, the Department intends to issue regulations which will define the number and percentage of non-high school graduates which may be enrolled as regular students in an eligible program. Before such regulations become final, hearings will be held and the public will be given an opportunity to comment on the proposed regulations. I understand that you were concerned that the passage of the Education Amendments of 1976, P.L. 94-482, and the Higher Education Technical Amendments, P.L. 95-43, would affect this result. Section 181 of the Education Amendments of 1976, P.L. 94-482, amended the statutory definition of a public or nonprofit private institution of higher education set forth in section 1201 (a) of the Higher Education Act (20 U.S.C. 1141(a)). Subsection (b)(7) of the first section of P.L. 95-43 provided, in essence, that any changes made to section 1201 (a) of the Higher Education Act by section 181 of P.L. 94-482 did not authorize the Commissioner to terminate the eligibility of an institution of higher education that was previously eligible under section 1201(a) before the enactment of section 181. Thus, neither Act changed the eligibility requirements for a proprietary~ institution of higher education. In response to your second question regarding the high school graduation requirements of the BEOG program, the authorizing legislation does not specifically require that BEOG recipients have a certificate of high school graduation or its equivalent. The Basic Grant Program regulations state that a student must be enrolled in an eligible program of study offered by an eligible institution of higher education (45 CFR 190.3(a)(2)). Thus, if a non-high school graduate enrolls in an eligible program in an eligible institution, the student may secure a Basic Grant if he is otherwise eligible, so long as his presence does not make the institution itself ineligible. I appreciate your concern in this matter. If we can be of further assistance, please let me know. This is to certify that the school listed above meets the definition of a 'proprietary institution of higher education, as defined by the Higher Education Act of 1965, as amended. (1) As an "eligible institution" it is eligible to apply for participation in the following programs administered by the Bureau of Higher Education: (2) Students who have been accepted for enrollment or are in good standing at this "eligible institution" are also eligible for Basic Educational Opportunity Grants. Please note, however, that this eligibility applies while the school remains Enclosures: Sincerely yours, Ruth W. Crowley, Chief Occupational School Eligibility Section Division of Eligibility and Agency Evaluation Memorandum concerning prohibition of sex discrimination CC: Regional Office PE; SFA; BEOG; OSES; CSS : It is a pleasure to inform you that the school listed above, operating at the address indicated, is considered to be an "eligible institution" for the following programs administered by the Office of Education. Guaranteed Student Loan Program. In order to participate in this program, each eligible school must sign an "Agreement Regarding Institutional Participation in the Guaranteed Student Loan Program". This form will automatically be mailed to you by our Office of Guaranteed Student Loans. Please note, however, that student loans are available only to eligible students who are enrolled in eligible programs as defined by the statutes and program regulations. Please communicate with the Program Officer, OGSL in your respective OE Regional Office for answers to your specific questions concerning the operation of this program. Contracts under the provisions of the Vocational Education Act. This program provides that the State Board or local educational agency may enter into arrangements with private postsecondary schools to provide vocational instruction when it has been determined that the private institution can provide equivalent training at a lesser cost, or can provide equipment or services not available in public schools. Please communicate with the State Director of Vocational Education in your respective State Capital for additional information on the program. Please note that this eligibility pertains to the school* listed at the above address, as long as the school remains accredited by a nationally recognized accrediting agency or association, continues to operate under the same ownership and has not violated or failed to carry out any regulations prescribed by the Commissioner of Education. Please notify this Office immediately of any name, address, or ownership change to assure continuation of the eligibility status of the school. Sincerely yours, Ruth W. Crowley, Chief Occupational School Eligibility Section Division of Eligibility and Agency Evaluation Enclosure CC: OGSL; OGSL Field; BAVTE; CSS; OSE |