amount which bears the same ratio to such sums as the number of students in attendance as at least half-time students at institutions of higher education in such State bears to the total number of such students in such attendance in all the States.

(b) Reallotment of funds for initial awards. The amount of any State's allotment under paragraph (a) of this section for any fiscal year which the Commissioner determines will not be required for that State's grant program for such fiscal year shall be available for reallotment from time to time, on such dates during such year as the Commissioner may fix, to other States in proportion to the original allotments to such States under paragraph (a) of this section for such year, but with such proportionate amount for any of such States being reduced to the extent it exceeds the sum the Commissioner estimates such State needs and will be able to use for such year for carrying out the State plan; and the total of such reductions shall be similarly reallotted among the States whose proportionate amounts were not so reduced.

(c) Any amount reallotted to a State under paragraph (b) of this section during a year shall be deemed part of its allotment under paragraph (a) of this section for such year.

(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 determined by the Commissioner for the most recent year for which satisfactory data are available to him.

(e)(1) From the sum appropriated for the SSIG Program for Fiscal Year 1976, the Commissioner will allot to each State that applies for such funds an amount which bears the same ratio to such sum as the number of students in attendance as at least half-time students at institutions of higher education in such State bears to the total number of such students in such attendance in all such States. (A table containing a distribution among all States has been appended to the Fiscal Year 1976 State application form as a guide for the States in developing their applications.)

(2) Each State wishing to obtain a grant under this Program shall apply for such grant in accordance with the provisions of the program regulations (45 CFR 192.5). In such application, each State will specify what proportion of its allotment it intends to use for continuing awards and what proportion for initial awards.

(3) The Commissioner will review all State applications for conformity with the program statute and regulations, and will approve all requests for continuation awards where the amount applied for does not exceed the amount of the State's allotment established under paragraph (e)(1) above. The difference between the amount of each State's allotment and the amount approved for continuation awards by the State may be used by the State for making initial awards.

(4) The Commissioner may require each State receiving an allotment under this Program to submit a report prior to September 30, 1976, projecting the portion, if any, of such allotment that will not be needed to make SSIG awards for the academic year 1976-77. Such unused funds may be redistributed among the other States in proportion to the original allotments. (20 U.S.C. 1070c-1)

(f) The Commissioner may require each State receiving an allotment of funds for continuation awards under this part to submit a report prior to June 1 of each year projecting the portion, if any, of such allotment that will not be needed to make continuation awards. Such unused funds may be redistributed among the other States in proportion to the original allotments such States for continuation awards, provided that no State receives more than its request.

to

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

[39 FR 19213, May 31, 1974, as amended at 40 FR 17844, Apr. 23, 1975; 40 FR 27459, June 30, 1975; 41 FR 11311, Mar. 18, 1976]

§ 192.4 State program requirements.

(a) A State may receive funds allotted to it for initial grants under § 192.3 for any fiscal year only if such funds will be expended pursuant to a State program which:

(1) Is administered by a single State agency;

(2) Awards such grants only to students who meet the eligibility requirements of § 192.6;

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

(4) Provides that such 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;

(5) Meets the maintenance of effort requirement of § 192.9;

(6) Provides for such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of and accounting for Federal funds paid to the State under this part;

(7) Provides for the making of such reports, in such form and containing such information, as may be reasonably necessary to enable the Commissioner to perform his functions under this part; and

(8) Provides for the payment of the non-Federal share of grants awarded under this part from funds supplied by the State.

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

(b) A State may receive the funds allotted to it for continuation grants under § 192.3 for any fiscal year only if such funds will be expended pursuant to a State program which satisfies the requirements set forth in subparagraphs (1) through (4) and (6) through (8) of paragraph (a) of this section.

[39 FR 19213, May 31, 1974, as amended at 40 FR 17845, Apr. 23, 1975]

§ 192.5 State applications.

(a) Any State wishing to obtain a payment under this part which has not previously received funds under the Act shall file an application with the Commissioner, through the State agency administering its program of student grants, which shall be in such form, and contain the following information and such other information and assurances, as the Commissioner may from time to time prescribe:

(1) A description of the applicable State grant program, including

(i) The name of the State agency administering the program,

(ii) A certification by an appropriate State official that the above State agency is the single State agency responsible for the administration of this grant program and that such agency has the authority to participate in and receive funds under this part,

(iii) The maximum grant permitted under the program,

(iv) The program's definition of substantial financial need,

(v) The criteria and procedures used in determining financial need, in selecting grant recipients and in determining the amount of such grants,

(vi) A description of the students eligible to receive grants, and

(vii) The type of school students receiving grants under the program may attend;

(2) The amount of funds to be spent by the State in the fiscal year for which funds are requested under this part for grants to all students attending institutions of higher education, including grants to undergraduate students awarded such funds on the basis of substantial financial need;

(3) The amount of funds, if any, expended by the State for grants to all students attending institutions of higher education, including grants to undergraduate students awarded such funds on the basis of substantial financial need, during the second fiscal year preceding the fiscal year in which the State will first receive funds under this part; and

(4) An assurance that the State will match the amount of funds allotted or reallotted to it under § 192.3 for the fiscal year, or if the State cannot make such an assurance, the amount of Federal funds that the State can match for that fiscal year.

(b) Any State which has previously received funds under the Act that wishes to obtain a payment under this part shall file an application with the Commissioner, through the State agency administering its program of student grants, which shall be in such form, and contain the following information and such other information or

assurances, as the Commissioner may from time to time prescribe:

(1) The definition of substantial financial need;

(2) The criteria and procedures used in determining financial need, in selecting grant recipients and in determining the amount of such grants;

(3) The information described in subparagraphs (2) and (4) of paragraph (a) of this section; and

(4) An assurance that the applicable State program continues to meet the requirements of § 192.4.

(5) The amount of funds requested for continuation awards;

(6) The amount of funds the State received for initial and continuation awards for the current academic year;

(7) The number of students who have previously received initial and continuation awards under this part who will be eligible to receive continuation awards during the next academic year;

(8) The average initial award and the average continuation award made under this part for the current academic year; and

(9) If available, the projected attrition rate for students receiving assistance under this part for the current academic year.

(c) The Commissioner will from time to time establish cut off dates for the filing of applications.

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

[39 FR 19213, May 31, 1974, as amended at 40 FR 17845, Apr. 23, 1975]

§ 192.6 Student eligibility.

In order to receive a grant under this part, a student must (1) be a national of the United States, be in the United States for other than a temporary purpose and intend to become a permanent resident thereof, or be a permanent resident of the Trust Territories of the Pacific Islands; (2) be enrolled or accepted for enrollment as at least a half-time undergraduate student at an institution of higher education; and (3) have substantial financial need as determined annually in accordance with § 192.7.

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

§ 192.7 State standards for determining substantial financial need.

(a) A State program under this part shall define substantial financial need and establish standards for determining whether an applicant for a grant has such need. Such standards may include, but are not limited to

(1) A student's expected family contribution;

(2) The difference between a student's cost of education and his expected family contribution; or

(3) The student's or where relevant, the student's parents' income.

(b) A student will be deemed by the Commissioner to have substantial financial need under a State program (1) which determines such need by evaluating only the student's expected family contribution if that student's expected family contribution is not more than $2800; (2) which determines such need by evaluating the difference between the student's cost of education and his expected family contribution if that difference is at least $90; (3) which determines such need by evaluating the student's, and where relevant, the student's parents' income if the student's net income does not exceed $20,000, or, where relevant, if the parents' net income does not exceed $20,000; or (4) which determines such need in accordance with standards other than those specifically listed in paragraph (a) of this section if the amount of need determined in accordance with that standard is reasonably comparable to the amount of need that would be determined under the standards listed in paragraph (a).

(c) A State program which provides for the selection of recipients on the basis of criteria which do not qualify under the provisions of paragraph (b) may, nevertheless, be approved, pursuant to section 415C(b)(4) of the Act, if the State demonstrates, to the satisfaction of the Commissioner, that such program provides for the selection of recipients only on the basis of substantial financial need.

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

§ 192.8 Approval of State criteria for determining expected family contribution.

(a) Dependent students. The Commissioner will approve the criteria of a State program which uses an expected family contribution in determining whether a dependent student has substantial financial need if such State takes into consideration at least the following factors in determining the amount of income and net assets that should reasonably be made available by the student, the student's spouse and the student's parents for meeting the student's cost of education:

(1) Any serious family illness; (2) The number of dependent children of the student's parents;

of

(3) The number of such dependent children attending institutions higher education; and

(4) Such other circumstances as may affect the ability of the student and student's parents to contribute toward the cost of the student's education.

(b) Independent or self-supporting student. The Commissioner will approve the criteria of a State program which utilizes an expected family contribution in determining whether an independent or self-supporting student has substantial financial need if such State takes into consideration at least the following factors when calculating that portion of the income and net assets of the student and the student's spouse which should reasonably be made available for meeting the student's cost of education:

(1) Any serious illness in the student's family;

(2) The number of dependent children of the student;

(1) Systems of need analysis published by the American College Testing Services and the College Scholarship Service,

(2) The method of calculating an expected family contribution used in the Basic Educational Opportunity Grant Program (45 CFR 190), or

(3) For dependent students only, the Income Tax System-For purposes of this part, the expected family contribution calculated according to the Income Tax System is an amount equal to the amount of income tax paid by the parents of such student, 5 percent of such parents' net assets in excess of $7,500 and any amount the student is reasonably able to contribute.

(d) The Commissioner will approve any other need analysis system or method of calculation which produces an expected family contribution reasonably comparable to those produced by those described in paragraph (c) of this section.

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

§ 192.9 Maintenance of effort.

The amount of funds expended by the State for the non-Federal portion of initial awards made under this part for each fiscal year shall represent an additional expenditure for that year by that State over the amounts, if any, expended by such State for grants to all students attending institutions of higher education during the second fiscal year preceding the fiscal year in which such State initially received funds under this part.

(20 U.S.C. 1070c-2(b)(4)) [40 FR 17845, Apr. 23, 1975]

§ 192.10 Use of funds.

Funds paid to a State under this part may be used by such State only to pay 50 percent of the amount of student grants made under this part. (20 U.S.C. 1070c-2)

§ 192.11 Disapproval of State applications. The Commissioner will comply with the provisions of § 415D of the Act (regarding notice, opportunity for a hearing, and judicial review) before finally

tracts to public or private agencies, organizations, groups, or individuals, to promote the widespread installation in public and private nonprofit elementary and secondary schools, early childhood education programs and education programs for adults who do not have a certificate of graduation from a school providing secondary education and who have not achieved an equivalent level of education, of rigorously evaluated, exemplary educational programs, products, or practices already developed with Federal support. (References hereinafter to "schools" shall include public and private nonprofit schools and programs providing education at these levels.) The program will be designed to acquaint schools throughout the Nation with exemplary, Federally funded programs and, if the schools decide to adopt these programs, to assist them in doing so through the provision of information, technical assistance, and training.