607.1 What is the Strengthening Institutions Program?

607.2 What institutions are eligible to receive a grant under the Strengthening Institutions Program?

607.3 What is an enrollment of needy students?

607.4 What are low educational and general expenditures?

607.5 How does an institution apply to be designated an eligible institution?

607.6 What regulations apply? 607.7 What definitions apply?

607.8 What is a comprehensive development plan and what must it contain? 607.9 What are the type, duration and limitations in the awarding of grants under this part?

607.10 What activities may and may not be carried out under a grant?

Subpart B-How Does an Institution Apply for a Grant?

607.11 What must be included in individual development grant applications? 607.12 What must be included in cooperative arrangement grant applications? 607.13 How many applications for a development grant may an institution submit?

Subpart C-How Does the Secretary Make an Award?

607.20 How does the Secretary evaluate an application?

Sec.

607.21 What are the selection criteria for planning grants?

607.22 What are the selection criteria for

development grants?

607.23 What special funding consideration does the Secretary provide?

Subpart D-What Conditions Must a Grantee Meet?

607.30 What are allowable costs and what are the limitations on allowable costs? 607.31 How does a grantee maintain its eligibility?

AUTHORITY: 20 U.S.C. 1057-1059, 10661069f, unless otherwise noted.

SOURCE: 52 FR 30529, Aug. 14, 1987, unless otherwise noted.

Subpart A-General

§ 607.1 What is the Strengthening Institutions Program?

The purpose of the Strengthening Institutions Program is to provide grants to eligible institutions of higher education to enable them to improve their academic quality, institutional management, and fiscal stability in order to increase their self-sufficiency, and strengthen their capacity to make a substantial contribution to the higher education resources of the Nation.

(Authority: 20 U.S.C. 1057)

tional program for which it awards a bachelor's degree;

(4) It is accredited or preaccredited by a nationally recognized accrediting agency or association that the Secretary has determined to be a reliable authority as to the quality of education or training offered; and

(5) It has satisfied the requirements contained in paragraphs (a)(3) and (a)(4) of this section for the five academic years preceding the academic year for which it initially seeks a grant under this part.

(b) An institution of higher education is eligible to receive a grant under the Strengthening Institutions Program even if it does not satisfy the requirements of paragraph (a)(5) of this section if its student enrollment consists of at least

(1) Twenty percent Mexican American, Puerto Rican, Cuban, or other Hispanic students, or any combination thereof;

(2) Five percent Native Hawaiian, Asian American, American Samoan, Micronesian, Guamian (Chamorro), or Northern Marianian or any combination thereof; or

(3) Sixty percent American Indian, or in the case of Alaska natives, an enrollment of at least 5 percent Alaska natives.

(c) The Secretary may waive the requirements of paragraph (a)(5) of this section in the case of an institution located on or near an Indian reservation or a substantial population of Indians, if the Secretary determines that the waiver will substantially increase higher education opportunities appropriate to the needs of American Indi

ans.

(d) A branch campus of an institution of higher education, if the institution as a whole meets the requirements of paragraphs (a)(1) through (5) of this section, is eligible to receive a grant under the Strengthening Institutions Program even if, by itself, it does not satisfy the requirements of paragraphs (a)(3), (a)(4) and (a)(5) of this section, although the branch must meet the requirements of paragraphs (a)(1) and (a)(2) of this section.

(e) For the purpose of paragraphs (b) and (c) of this section, an institu

tion's enrollment consists of a head count of its entire student body.

(f) An institution that qualifies for a grant under the Strengthening Historically Black Colleges and Universi ties Program (34 CFR Part 608) and receives a grant under that program for a particular fiscal year is not eligi ble to receive a grant under the Strengthening Institutions Program for that same fiscal year.

(Authority: 20 U.S.C. 1058)

[52 FR 30529, Aug. 14, 1987, as amended at 54 FR 11481, Mar. 20, 1989]

§ 607.3 What is an enrollment of needy students?

(a) Except as provided in paragraph (b) of this section, for the purpose of § 607.2(a)(1), an applicant institution has an enrollment of needy students if in the base year

(1) At least 50 percent of its degree students received student financial assistance under one or more of the fol lowing programs: Pell Grant, Supplemental Educational Opportunity Grant, College Work-Study, and Perkins Loan; or

(2) The percentage of its undergrad uate degree students who were enrolled on at least a half-time basis and received Pell Grants exceeded the median percentage of undergraduate degree students who were enrolled on at least a half-time basis and received Pell Grants at comparable institutions that offer similar instruction.

(b) The Secretary waives the re quirement contained in paragraph (8) of this section if the institution demonstrates that

(1) The State provides more than 30 percent of the institution's budget and the institution charges not more than $99.00 for tuition and fees for an academic year;

(2) At least 30 percent of the students served by the institution in the base year were students from lowincome families;

(3) The institution substantially increases the higher education opportu nities for low-income students who are also educationally disadvantaged, underrepresented in postsecondary edu cation, or minority students;

(4) The institution substantially increases the higher education opportunities for individuals who reside in an area that is not included in a "metropolitan statistical area" as defined by the Office of Management and Budget and who are unserved by other postsecondary institutions;

(5) The institution is located on or within 50 miles of an Indian reservation, or a substantial population of Indians and the institution will, if granted the waiver, substantially increase higher education opportunities for American Indians; or

(6) The institution will, if granted the waiver, substantially increase the higher education opportunities for Black Americans, Hispanic Americans, Native Americans, Asian Americans or Pacific Islanders, including Native Hawaiians.

(c) For the purpose of paragraph (b) of this section, the Secretary considers "low-income" to be an amount which does not exceed 150 percent of the amount equal to the poverty level as established by the United States Bureau of the Census.

(d) Each year, the Secretary notifies prospective applicants through a notice in the FEDERAL REGISTER of the low-income figures.

(Authority: 20 U.S.C. 1058 and 1067)

§ 607.4 What are low educational and general expenditures?

(a)(1) Except as provided in paragraph (b) of this section, for the purpose of § 607.2(a)(2), an applicant institution's average educational and general expenditures per full-time equivalent undergraduate student in the base year must be less than the average educational and general expenditures per full-time equivalent undergraduate student of comparable institutions that offer similar instruction in that year.

(2) For the purpose of paragraph (a)(1) of this section, the Secretary determines the average E&G per FTE undergraduate student for institutions with graduate students that do not differentiate between graduate and undergraduate E&G expenditures by discounting the graduate enrollment using a factor of 2.5 times the number of graduate students.

(b) Each year, the Secretary notifies prospective applicants through a notice in the FEDERAL REGISTER of the average educational and general expenditures per full-time equivalent undergraduate student at comparable institutions that offer similar instruction.

(c) The Secretary may waive the requirement contained in paragraph (a) of this section, if the Secretary determines, based upon persuasive evidence provided by the institution, that—

(1) The institution's failure to satisfy the criteria in paragraph (a) of this section was due to factors which, if used in determining compliance with those criteria, distorted that determination; and

(2) The institution's designation as an eligible institution under this part is otherwise consistent with the purposes of this part.

(d) For the purpose of paragraph (c)(1) of this section, the Secretary considers that the following factors may distort an institution's educational and general expenditures per fulltime equivalent undergraduate student

(1) Low student enrollment;

(2) Location of the institution in an unusually high cost-of-living area; (3) High energy costs;

(4) An increase in State funding that was part of a desegregation plan for higher education; or

(5) Operation of high cost professional schools such as medical or dental schools.

(Authority: 20 U.S.C. 1058 and 1067)

§ 607.5 How does an institution apply to be designated an eligible institution? An institution shall apply to the Secretary to be designated an eligible institution under the Strengthening Institutions Program by submitting an application to the Secretary in the form, manner and time established by the Secretary. The application must contain

(a) The information necessary for the Secretary to determine whether the institution satisfies the requirements of § 607.2, § 607.3(a) and § 607.4(a);

50-130 0-91-8

under

(b) Any waiver request § 607.3(b) and § 607.4(c); and (c) Information or explanations justifying any requested waiver. (Authority: 20 U.S.C. 1058 and 1067)

§ 607.6 What regulations apply?

The following regulations apply to the Strengthening Institutions Program:

(a) The Education Department General Administrative Regulations (EDGAR) in 34 CFR Part 74 (Administration of Grants); Part 75 (Direct Grant Programs), except 34 CFR 75.128(a)(2) and 75.129(a) in the case of applications under cooperative arrangements; Part 77 (Definitions That Apply to Department Regulations; and Part 79 (Intergovernmental Review of Department of Education Programs and Activities).

(b) The regulation in this part. (Authority: 20 U.S.C. 1221e-3(a)(1), 1057, 1060, 1064)

[52 FR 30529, Aug. 14, 1987, as amended at 55 FR 21715, May 25, 1990]

§ 607.7 What definitions apply?

(a) Definitions in EDGAR. The following terms that apply to the Institutional Aid Programs are defined in 34 CFR 77.1:

EDGAR

Fiscal year

Grant

Grantee

Grant period

Nonprofit

Private

Project

Project period Public

Secretary

State

(b) The following definitions also apply to this part:

Accredited means the status of public recognition which a nationally recognized accrediting agency or association grants to an institution which meets certain established qualifications and educational standards.

Activity means an action or actions which are incorporated into an implementation plan designed to meet an objective. An activity is a subpart of a project.

Base year means the second fiscal year preceding the fiscal year for which an institution seeks a grant under this part.

Branch campus means a unit of a college or university that is geographically apart from the main campus of the college or university and independent of that main campus. The Secretary considers a unit of a college or university to be independent of the main campus if the unit

(1) Is permanent in nature;

(2) Offers courses for credit and programs leading to an associate or bachelor's degree; and

(3) Is autonomous to the extent that it has

(i) Its own faculty and administrative or supervisory organization; and (ii) Its own budgetary and hiring authority.

College Work-Study Program means the part-time employment program authorized under Title IV-C of the HEA.

Comparable institutions that offer similar instruction means institutions that are being compared with an applicant institution and that fall within one of the following four categories(1) Public junior or community colleges;

(2) Private nonprofit junior or community colleges;

(3) Public institutions that offer an educational program for which they offer a bachelor's degree; or

(4) Private nonprofit institutions that offer an educational program for which they offer a bachelor's degree.

Cooperative arrangement means an arrangement to carry out allowable grant activities between an institution eligible to receive a grant under this part and another eligible or ineligible institution of higher education, under which the resources of the cooperating institutions are combined and shared to better achieve the purposes of this part and avoid costly duplication of effort.

Degree student means a student who enrolls at an institution for the purpose of obtaining the degree, certifi cate, or other recognized educational credential offered by that institution.

Developmental program and services means new or improved programs and

services, beyond those regularly budgeted, specifically designed to improve the self sufficiency of the school.

Educational and general expenditures means the total amount expended by an institution of higher education for instruction, research, public service, academic support (including library expenditures), student services, institutional support, scholarships and fellowships, operation and maintenance expenditures for the physical plant, and any mandatory transfers which the institution is required to pay by law.

Full-time equivalent students means the sum of the number of students enrolled full-time at an institution, plus the full-time equivalent of the number of students enrolled part time (determined on the basis of the quotient of the sum of the credit hours of all parttime students divided by 12) at such institution.

HEA means the Higher Education Act of 1965, as amended.

Institution of higher education means an educational institution defined in section 1201(a) of the HEA.

Junior or community college means an institution of higher education

(1) That admits as regular students 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) That does not provide an educational program for which it awards a bachelor's degree (or an equivalent degree); and

(3) That

(i) Provides an educational program of not less than 2 years that is acceptable for full credit toward such a degree, or

(ii) Offers a 2-year program in engineering, mathematics, or the physical or biological sciences, designed to prepare a student to work as a technician or at the semiprofessional level in engineering, scientific, or other technological fields requiring the understanding and application of basic engineering, scientific, or mathematical principles of knowledge.

Nationally recognized accrediting agency or association means an ac

crediting agency or association that the Secretary has recognized to accredit or preaccredit a particular category of institution in accordance with the provisions contained in 34 CFR Part 603. The Secretary periodically publishes a list of those nationally recognized accrediting agencies and associations in the FEDERAL REGISTER.

Operational programs and services means the regular, ongoing budgeted programs and services at an institution.

Pell Grant Program means the grant program authorized by Title IV-A-1 of the HEA.

Perkins Loan Program, formerly called the National Direct Student Loan Program, means the loan program authorized by Title IV-E of the HEA.

Preaccredited means a status that a nationally recognized accrediting agency or association, recognized by the Secretary to grant that status, has accorded an unaccredited institution that is progressing toward accreditation within a reasonable period of time.

Project means all the funded activities under a grant.

Self-sufficiency means the point at which an institution is able to survive without continued funding under the Strengthening Institutions Program.

Special Needs Program means the program authorized by Part B of Title III of the HEA before Part B was amended by the Higher Education Amendments of 1986.

Strengthening Program means the program authorized by Part A of Title III of the HEA before Part A was amended by the Higher Education Amendments of 1986.

Supplemental Education Opportunity Grant means the grant program authorized by Title IV A-2 of the HEA. (Authority: 20 U.S.C. 1051, 1057-1059 and 1066-1069f)

§ 607.8 What is a comprehensive development plan and what must it contain?, (a) A comprehensive development plan describes an institution's strategy for achieving growth and self-sufficiency by strengthening its(1) Academic quality;